Manufacturing AUTOMATION

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Mergers and acquisitions driving current wave of automation upgrades, CSIA says


September 12, 2012
By Manufacturing AUTOMATION

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More clients served by industrial automation are integrating automation equipment from several different vendors, according to the Control System Integrators Association (CSIA).

 This follows a third straight year of increased activity in mergers and acquisitions in North America, CSIA officials say.

“Our CSIA members are increasingly providing solutions to clients involved in mergers and acquisitions,” says Bob Lowe, executive director of the Control System Integrators Association (CSIA). “It’s the technology—what we call business intelligence—that our members help plan and implement for their clients so they can enjoy greater understanding and peace of mind.”

A 2012 survey conducted by Deloitte LLP and its subsidiaries shows close to half of the business executives queried expect an upsurge in mergers and acquisitions. Higher growth is forecast in manufacturing where 62 per cent of business leaders believe the number of M&A transactions will climb through 2014.  Increased opportunities in emerging markets are credited for advancing this trend.

Lowe adds that during mergers and acquisitions, automation initiatives result in system consolidations, waste reduction and improved yields. In addition, companies are increasingly realizing the value of control system integration because they want to manage the risk associated with multiple automation systems.

“Directors of quality, plant superintendents and many others are discovering that automation upgrades provided by CSIA are necessary to compete,” explains Lowe. “Integrated automation systems make them more accountable to their customers and can help drive cost out of their product.”