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The question is, will they permit their systems to be run inside the cloud, and not just in a virtual server? Some automation vendors say no. Others are working hard to convince their customers to virtualize as the first step toward cloud-hosted services. After all, how much safer is your data if you store it on the server rack in the dirty old closet behind the control room than if you stored it at Apple's $1-billion server farm in Maiden, N.C., where there are redundant power backup, redundant server backup, automatic failover and high-purity HVAC?
The charts pretty much speak for themselves. In the top 10, Siemens, ABB and Emerson all held position
globally, while Schneider and Rockwell changed places. GE moved up significantly, while Mitsubishi and Danaher moved down. A significant move was that Endress+Hauser, which only manufactures field instruments and analyzers, moved into the 12th spot without owning a DCS or PLC, or even a valve manufacturing facility. Its partnership with Rockwell seems to be helping the company greatly.
In North America, the first three on the list are the same as last year, and then things start to move around. Siemens moved to 4th, Danaher moved from 4th to 7th, and Roper moved up two places. Companies move up and down a couple of places every year.
We want to remind our readers that this list is a work in progress every year. Every year, somebody points out a company we have missed, or a vendor suggests better numbers than we have been able to find. We regret any errors, and we very much welcome corrections and additions.
We have mentioned cloud computing and virtualization as upcoming trends. These are both sneaking up on automation end users faster than most of us think. The pervasive use of wireless in the plant and the bring your own device (BYOD) movement are poised to seriously change the way we work both in the plant and in the control room. Virtualization aids security, but vendor companies now are working hard to produce the most secure products they possibly can—now that they have woken up to the danger to their controllers and their field devices. In Siemens' new S7-1500 PLC, for example, engineers have embedded an "edge device" firewall of their own making.
There is a great deal of discussion about "one big network" again, and it will be interesting to watch what happens when customers start to insist (you will insist, won't you?) that products from disparate vendors plug and play nicely with each other.
And there are serious questions about the global economy. What's going to happen with China? According to gongkong, the huge Chinese analyst firm, the Chinese economy is growing at a low single-digit rate. Many people expect that the new government in China will have to "prove itself" to the people by increasing spending on infrastructure and modernization of both facilities such as water and wastewater and power systems, and many quasi-private companies will be invested in and encouraged to invest in turn.
According to Lutz Liebers, director of European business for Pepperl+Fuchs, South American hotspots include
Argentina, Peru, Bolivia and Chile. He is less sanguine about Brazil, because of its middling poor infrastructure. Russia, he notes, figures largely in his growth regions, and Liebers echoes Satoru Kurosu of Yokogawa in pointing to the United States as one of the highest new growth regions in the world. Yes, the place where it seemed for decades that manufacturing was dead. It appears that the United States is more productive and produces higher quality than everybody believed, and can compete on price with the rest of the world.
As far as the euro crisis is concerned, most people think the EU will somehow figure out how to solve it. Chancellor Merkel is dancing as fast as she can to keep any one of the sick countries of the Eurozone from defaulting, and the smart money in Europe is betting that she can.
So what will happen next? Most people believe that there will be a flat first half in 2013, followed by an uptick. How big, or how long will the uptick in late 2013 and 2014 be? The conventional wisdom from the hot seats of the major automation companies is that we don't really know. That isn't likely to inspire you to great heights of happiness, but that's the way it is. This economy is growing very slowly, with all the economic and political time bombs and land mines affecting it. It is like the dancing bear. The thing about the dancing bear is not how well he dances, but that he dances at all.