PS: One of the things that we’ve noticed in talking to our readers is that some plants are either delaying going digital or they’re not sure where to start. And there’s a simultaneous trend where a lot of OEMs are embedding wireless technologies and network technologies into the machine so they can collect data on performance, simply to keep up with competitors. What are your thoughts on plants who are delaying this sort of thing? Can they stay competitive over the next 5-10 years? Or is the market making the decision for them?
HA: It’s tough because I think the big OEMs want broad visibility into the Tier 1, Tier 2, Tier 3 suppliers, and a lot of manufacturing becomes just-in-time. Having that visibility is essential for them to do the integration that they do. I think it ultimately depends on who the manufacturer is contracting and doing work with. For example, look at the national network of advanced manufacturing institutes and specifically MxD, which is in Chicago. The Department of Defense (DoD) has put in (at least) $100 million to create that digital manufacturing center, digital twins, cybersecurity (research), and it’s being driven by the DoD and by OEMs, and then getting pushed through the supply chain.
So, I wouldn’t say it’s fine if they’re not adopting right now. Five years from now, they definitely should be aware of the technologies that are emerging and how it fits into their operations. Ten years from now, it’s just going to be required by industry to have some sort of visualization and access to the analytics. Machines are becoming pretty amazing in producing the data, so if you know how to use it, you can unlock a whole lot of value.
And when it comes to cost, three or four years ago, it would have cost $10,000 to $20,000 to do basic predictive analytics on a single CNC machine. Now you can buy a $100 sensor that plugs right in and is wireless and has a $10/month service fee. That has immediately dropped the price for everybody.
It’s an exciting time though. We always look at the price of components, the price of battery storage, the ability to store and compete in the cloud, all the technology that was developed around the cellphones. 5G is now coming online, creating more access than ever before, so more people can engage in this innovation. Over the last 13 years, technology costs have been driven down, the access has been made more profuse, and it’s enabling the creation of simple devices that you couldn’t even imagine creating because they would have been cost-prohibitive 10 years ago.