PC-DEC22-PG24-25.1_Layout 1 04/01/2023 14:35 Page 24
INDUSTRY 4.0/IIOT
REFURB AND RETROFIT USING SMART FINANCE
supply/demand and efficiency and even service and after sales. This means that when it comes to investing in new equipment, manufacturers are likely to only consider investing in technology that is digital-ready. So, what’s standing in their way? Supply chain disruption, for one, represents
D
a significant obstacle. Production schedules have been upset by input shortages, longer supplier lead times and capacity constraints. Meanwhile, delays to all forms of shipping – via land, sea, or air – alongside the disruptions caused by Brexit and COVID-19 are leading to longer vendor lead times for the supply of machinery1
. Unsurprisingly, the pandemic shutdowns
and problems it has caused manufacturers have left many reluctant to invest. However, historical evidence shows that those who invest during a downturn are likely to gain long-term competitive advantage2
vaccination rates increase and bottlenecks ease, confidence is returning to the sector3
.
This puts greater pressure on those manufacturers that have deferred investment in Industry 4.0, as they are at even greater risk of being left behind by competitors who maintained momentum during the downturn. Given the well-known benefits of Industry 4.0
– enhanced operating agility, flexibility, and efficiency – the fact remains that every month that goes by where a manufacturer doesn’t invest is a month of lost production improvement, output efficiency and opportunities for reduced energy costs. Quite simply, it’s a month’s worth of lost competitive advantage. However, with the limited access to new
digital technologies and lengthy lead times for delivery from vendors, manufacturers
24 DECEMBER 2022/JANUARY 2023 | PROCESS & CONTROL
igitalised equipment and technology impact every aspect of industrial production from quality to meeting
Stefania Moruzzi, Business Development Manager, Siemens Financial Services, UK, explains how manufacturers can gain a competitive advantage using smart finance
must consider other pathways to Industry 4.0. Given the reduced access to new machinery caused by pandemic disruptions, manufacturers are increasingly turning to retrofitting - or refurbished equipment acquisition - for their digitalisation needs. Retrofitting consists of updating existing
. Indeed, as
equipment in situ to add in digital sensors, new components or enhanced software that increases machine efficiency and productivity. As a result, it becomes easier to maintain, adjust and test the production environment. Similarly, it can also be more rapidly fixed. Additionally, within the equipment supply
chain, several OEMs – anywhere from materials handling to production line and packaging – are taking back end-of-life equipment and refurbishing and digitalising it. They are adding in new components that rival those in the latest models and are then able to offer these out to market again. Refurbishing old equipment can also help
businesses to comply with sustainability objectives as it relies upon reuse of original infrastructure. Instead of replacing entire units, the process requires reusing the base frame of the original machine and only replacing specific components. Likewise, while out-of-
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