Revolutionizing SEA's Manufacturing Landscape

1. Introduction and Background

Can you provide insights into Rockwell Automation’s Industry Outlook for the manufacturing sector in Asia Pacific and how it has evolved in recent years?

Rockwell Automation’s Industry Outlook for the manufacturing sector in Asia Pacific showcases a promising landscape. Manufacturing is one of the most significant contributors to Asia-Pacific’s economy and is undergoing rapid transformation. Some key factors that can influence the manufacturing sector’s outlook include:

Technological Advancements: The adoption of advanced manufacturing technologies, such as automation, IoT, and the latest industrial revolution, are reshaping the manufacturing landscape and improving efficiency. According to our State of Smart Manufacturing Report, close to half (44%) of APAC manufacturers plan to adopt smart manufacturing within the next year; out of this, China (80%), Australia (60%) and India (59%) are already using some components of smart manufacturing.

Sustainability and Environmental Regulations: Increasing emphasis on sustainability and environmental regulations are driving changes in manufacturing practices and product requirements. Again, our State of Smart Manufacturing report cites that for the 94% of APAC manufacturers who have formal or informal environmental, social and governance (ESG) policies in place, close to half (48%) cite “a competitive differentiator” as the top driving factor for pursuing ESG initiatives.

Economic Growth: The overall economic growth and stability of countries in the Asia Pacific region can have a significant impact on manufacturing. Rapidly growing economies drive increased demand for manufactured goods.

2. Smart Manufacturing and Digital Transformation

Considering Singapore’s manufacturing sector’s challenges, such as labor shortages and an uncertain economic environment, how do you envision smart manufacturing and digital transformation contributing to business growth and resiliency in this context?

The manufacturing industry represents a significant component of Singapore’s GDP — approximately 20% — and is highly valued and supported by the Singapore Government.  Singapore is a prime example of a country that is embracing digital transformation. By implementing advanced automation and data-driven solutions, companies can enhance operational efficiency, reduce downtime, and optimize resource utilization. For instance, the deployment of Industrial Internet of Things (IIoT) sensors and predictive analytics allows real-time monitoring of equipment, thus minimizing unexpected breakdowns. By using these new ideas and technologies, businesses in Singapore can quickly adjust to changes in the market, become more competitive, and make sure their operations stay strong in the long run.

Could you elaborate on the benefits and challenges that businesses may face when adopting smart manufacturing in the Asia Pacific region?

 Smart manufacturing equips you with the information and insights to optimize productivity, quality, risk management, and sustainability. Smart manufacturing also provides you with the flexibility to address manufacturing issues quickly and efficiently, while reducing downtime and risks to your workers, assets, and reputation.

Take for example, automobile giant Chery’s journey toward building two intelligent and connected super factories in China. Encumbered by data silos and lack of visibility, Chery sought a smart manufacturing solution, the FactoryTalk Innovation Suite, to aggregate and contextualize data from disparate sources, while providing a single source of truth – leading to a 10% increase in production capacity and 30% decrease in labor costs.

Our State of Smart Manufacturing Report finds that the biggest barriers to adopting smart manufacturing for APAC manufacturers are employee resistance to technology adoption and change, lack of skillsets to manage smart manufacturing implementation, and lack of a clear definition of the value/ROI of smart manufacturing. To address these challenges, manufacturers should empower their employees with the necessary skills to adapt to evolving roles and collaborate effectively with AI systems. Providing education and upskilling opportunities to enhance digital capabilities is crucial. AI and Augmented Reality (AR) tools can be highly effective in this regard, creating virtual environments for experiential learning and knowledge-sharing.

3. Machine Learning and Artificial Intelligence

How is Rockwell Automation integrating machine learning and artificial intelligence into its solutions to address industry challenges in the manufacturing sector?

Rockwell Automation offers solutions such as AI-powered systems that can optimize manufacturing processes by adjusting parameters in real-time to maximize efficiency and product quality. This is particularly valuable in industries with complex and variable processes. Rockwell also has machine learning algorithms that can be used to analyze data from sensors and cameras to detect defects and anomalies in manufacturing processes, ensuring consistent product quality and reducing waste.

Let us look at an example: a food & beverage packaging plant has multiple stages of production such as filling, bottling, packaging, etc. With automated Operational Technology (OT) data context capture, manufacturers can easily correlate different production parameters to a particular batch number. They can document the origin of a production batch with the pressure, temperature, container thickness etc.

4. Cloud Solutions and Cybersecurity

Given the increasing importance of cloud solutions and cybersecurity, how is Rockwell Automation assisting manufacturing businesses in minimizing disruptions to their workforce and operations?

Rockwell Automation recognizes the critical role that cloud solutions and cybersecurity play in modern manufacturing. We offer a suite of products and services aimed at enhancing cybersecurity, enabling remote operations, and minimizing disruptions to the workforce and operations. These measures are designed to ensure the reliability and continuity of manufacturing processes, even in the face of evolving cybersecurity threats and changing work environments.

From accelerating innovation and improving scalability to increasing agility, streamlining operations, and reducing costs, Rockwell Automation’s FactoryTalk Hub cloud Software as a Service (SaaS) has the potential to transform businesses. The cloud enables on-demand scaling, making it easier to add or remove users and compute power.  With the SaaS, employees get automatic access to the latest software versions, no or little IT installation or maintenance needed. Scaling in the cloud can also cut hardware and software costs.

At Rockwell Automation, we understand that innovation is vital for meeting customer needs. Our SaaS offers a digital lab for testing and addressing production challenges with reduced risks and costs. Cloud facilitates remote system management for swift configuration and equipment connections.

5. Technology Adoption

Amid challenges such as inflation, supply chain disruptions, and workforce shortages, could you share examples of how technology adoption has proven beneficial for businesses in overcoming these hurdles?

53% of manufacturers in Asia Pacific are turning to technology to tackle the risks both inside and outside the organization as the State of Smart Manufacturing Report states. The top two ways respondents are addressing internal risk are to adopt new technology aimed at minimizing disruption from workforce or supply issues and to shift their operations to the cloud for purposes including increased cybersecurity protection and business continuity (50%).

6. Industrial Automation Trends

The industrial automation services market in Asia Pacific is poised for significant growth, with Singapore playing a dominant role in the Southeast Asian market. What opportunities does this present for manufacturing businesses?

The Industrial Automation Market in Asia-Pacific is projected to grow at CAGR of 12.1% from 2022 to 2030, owing to a rise in digital and economic transformation in the region, as per a report by Market Data Centre. Singapore’s strategic location and advanced infrastructure make it a hub for automation and Industry 4.0 technologies. From robotics to predictive analytics and now artificial intelligence (AI), the country is at the forefront of technological advancements.

Automation allows manufacturers to reduce labor costs, enhance productivity, and respond swiftly to market demands. This agility is crucial in a dynamic market like Southeast Asia, where consumer preferences and industry trends can change rapidly. These opportunities position companies for sustained growth and success in the evolving Southeast Asian landscape.

What specific benefits, including increased productivity, cost efficiencies, and sustainability, can businesses expect when embracing industrial automation?

For more than 120 years, Rockwell has improved the efficiency of industrial processes. We do this by helping our customers to be more resilient, agile, and sustainable by delivering digital transformation and industrial automation solutions that simplify the complex challenges facing manufacturers across the many diverse industries we serve. Industrial automation yields increased productivity, cost efficiencies, and sustainability for businesses. Continuous operation enhances output, while error reduction ensures consistent high-quality products, minimizing waste. Labor cost savings, efficient energy use, and streamlined processes contribute to overall cost efficiency.

At Rockwell Automation, we use our industry-focused ingenuity to meet customers where they are today, helping them to achieve their Environmental, Social, and Governance (ESG) goals and comply with new requirements. We are partnering with industrial manufacturing companies to track and reduce their energy, water, and waste. Ultimately, sustainability is all about ensuring a future where humanity can thrive.

What are the primary challenges or barriers that companies may face when adopting industrial automation technologies?

The primary challenges that companies may face include high initial investment costs. This is one of the most significant barriers as it requires upfront investments such as purchasing automation equipment, software and infrastructure.

Another challenge is cybersecurity concerns. As industrial systems become more connected and reliant on digital technology, cybersecurity threats become more prominent and being protecting against cyberattacks and ensuring data security is a critical challenge.

Workforce reskilling is also another challenge companies face. While companies look to grow or diversify their operations, scalability of automation solutions becomes a concern.

Overcoming these challenges requires careful planning, effective change management, collaboration with experts and technology providers, and a long-term strategic approach to automation adoption.

7. Closing Thoughts

As we conclude our interview, we would appreciate your insights into the future of manufacturing in Southeast Asia and recommendations for how businesses should prepare for the evolving landscape.

The future of manufacturing in Southeast Asia has great potential with notable trends and challenges. Southeast Asia is witnessing a rapid adoption of automation, robotics, and Industry 4.0 technologies. Businesses are automating processes, implementing IoT sensors, and using data analytics for smarter decision-making. Furthermore, environmental concerns are driving a shift towards sustainable manufacturing practices. Companies are adopting green technologies, reducing waste, and implementing eco-friendly processes to meet both regulatory and consumer demands.

The recommendation is for businesses to invest in automation, robotics, AI, and IoT to improve efficiency, reduce costs, and stay competitive. It is also crucial for businesses to implement sustainable manufacturing practices, reduce environmental impact, and align with global sustainability goals.

Originally published in Industrial Automation Asia