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{"id":3051,"date":"2020-04-20T06:22:54","date_gmt":"2020-04-20T06:22:54","guid":{"rendered":"https:\/\/tvs-test.co.za\/ccred\/?p=3051"},"modified":"2024-05-22T11:41:29","modified_gmt":"2024-05-22T11:41:29","slug":"machinery-equipment-and-electronic-control-systems-leading-reindustrialisation-in-southern-africa","status":"publish","type":"post","link":"http:\/\/tvs-test.co.za\/ccred\/2020\/04\/20\/machinery-equipment-and-electronic-control-systems-leading-reindustrialisation-in-southern-africa\/","title":{"rendered":"MACHINERY, EQUIPMENT AND ELECTRONIC CONTROL SYSTEMS: LEADING REINDUSTRIALISATION IN SOUTHERN AFRICA"},"content":{"rendered":"\t\t
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Digital Industrial Policy Brief 1<\/strong><\/h2>

Lauralyn Kaziboni,<\/strong>[1]<\/strong><\/a> Maria Nkhonjera,<\/strong>[2]<\/strong><\/a> Simon Roberts<\/strong>[3]<\/strong><\/a><\/p>

Introduction<\/strong><\/p>

Integrated machinery, equipment and electronic control systems are key industries for digitalisation and related technology changes, and combine a range of sophisticated and complex technologies. South Africa\u2019s machinery and equipment sector has a developed industrial base and encompasses the manufacture of machinery such as mineral-processing equipment, pumps, valves and earthmoving equipment. Machinery, equipment and electronic control systems have strong backward linkages to the metal products industries. The entire value chain accounts for the largest source of formal employment in South African manufacturing, contributing 250,000 direct jobs in total, of which the machinery and equipment accounts for 42%.[4]<\/a> The industry also has strong linkages with supporting industries such as transport and logistics, financial and engineering services, inducing further employment.<\/p>

However, the South African machinery and equipment sector has been losing capabilities and competitiveness, reflected in its losing market share in the region to deep sea imports.[5]<\/a> This is due to various factors, including weak productive skills, dilapidated infrastructure, lack of access to development finance, and high energy and input costs.[6]<\/a> The lead firms that have maintained market share in the region and elsewhere have continuously upgraded their capabilities and this includes investing in the latest technologies. As such, there is a need to strengthen the local production system that is at the heart of industrial development in South Africa including importantly through leveraging developments in technology.<\/p>

To remain close to the technology frontier, lead firms in South Africa are investing in world class machinery and equipment, adopting technologies from more advanced economies (such as Germany) and upskilling their workforce. Overall, there are groups of technologies that are \u2018changing the game\u2019 and enabling local companies to rise to international standards. The main technology driven changes in the industry include predictive maintenance and monitoring systems, additive manufacturing for rapid prototyping and tool making and robotics in production. This brief engages with these issues.<\/p>

Key technology disruptions<\/strong><\/p>

Predictive maintenance and monitoring systems <\/strong><\/p>

The biggest technology driven disruption in the South African machinery and equipment industry has been predictive maintenance and monitoring systems.[7]<\/a> Through reliable internet connectivity, mineral processing companies can collect real time data on the health and performance of machinery and equipment remotely, and how the environment including temperatures, pressure and humidity, affect its wear and tear. This uses a combination of industry 4.0 technologies including sensors, big data, cloud computing, data analytics, internet of things and artificial intelligence. Sensors have allowed firms to remotely monitor their equipment, and schedule repair and maintenance ahead of failure. Predictive analytics and the application of condition monitoring systems use cloud based programs that can be installed on most processing equipment.[8]<\/a>\u00a0 Monitoring equipment and real time feedback has occurred on the back of falling costs of sensors that continuously transmit data with low power and bandwidth requirements. For firms such as Weir Minerals, such technology platforms are a key focus, allowing their customers (mining houses) to reduce downtime and improve longevity of equipment.[9]<\/a> Predictive maintenance and monitoring systems have allow mines and other customer to reduce costs by preventing unplanned downtime, inspecting wear rates, indicating possible design improvements, and reducing manufacturing waste with pre-determined sizing.[10]<\/a> It is important to for firms to demonstrate predictive maintenance capabilities to be able to win new business and, in the near future, firms that do not have these capabilities will be competitively irrelevant.[11]<\/a><\/p>

The extent of technology used in predictive maintenance and monitoring systems currently depends on the installations. The newer installations of equipment include capabilities for machine learning such that the machines will automatically recalibrate to suite the observed weather conditions, as an example, while, in older installations, the analytics prompts humans to intervene.\u00a0 As older equipment gets replaced over time all installations will be equipped with artificial intelligence.<\/p>

Within mining machinery and equipment industry this is a stepwise change as the aftermarket services are a key part of the business. For processing equipment, the size of after-market revenues can be between 13 and 15 times the initial capital cost and installation, hence they offer sustainability for firms.[12]<\/a> Aftermarket services, together with quick lead times are critical determinants of firm competitiveness.[13]<\/a> With advances in technology, firms have moved from simple installation and repairs to the use of monitoring, control and predictive analytics systems, which are becoming part of a package of capabilities in the provision of aftermarket services.[14]<\/a><\/p>

In the South African context the adoption of predictive maintenance and monitoring systems raises a number of key issues.<\/p>