Over 80 attendees from the LASER World of Photonics 2019 exhibition (Munich, Germany) toured the Coherent “Center of Excellence for Systems and Sub-Systems,” located in nearby Gilching, on the evening of June 26. Visitors were treated to a tour and demonstrations in the applications labs and manufacturing facilities where Coherent produces most of its sub-systems and turnkey systems for industrial materials processing applications. Afterward, the guests enjoyed food, entertainment, and the company of their colleagues in the balmy German evening.

“Our ‘Center of Excellence’ here in Munich combines two formerly separate Coherent groups – the laser marking group which was in nearby Gunding, and the industrial laser sub-system and turnkey system business which was already located near Munich,” notes Dr. Armin Renneisen, General Manager. “The overall goal of that move was to leverage our extensive applications and process knowledge, together with our expertise in building laser-based sub-systems and systems, to offer products that make industrial manufacturing more efficient and cost effective. This open house was an opportunity for people to see for themselves the capabilities we offer, and also gave everyone involved a chance to develop closer personal relationships in a relaxed atmosphere that wasn’t just all about business.”

The Coherent Munich site includes products optimized for a wide range of applications, such as glass cutting for displays, precision tube cutting and marking for medical devices, plastics marking and welding for automotive production, and marking for home appliances (white goods). Other processes that this Coherent location supports include precision microstructuring and marking for microelectronics manufacturing, hairpin welding for e-mobility, and cutting and welding systems for everything from jewelry to car bodies. Coherent took the opportunity to showcase some of its most recent innovations, such as the SmartCut+ Application Package for StarFiber lasers, which delivers dramatically improved results when cutting or trepanning microcontours in metal.

Numerous guests reported that the evening provided valuable new information and useful insights, as well as excellent food and company, of course!

“What impressed me most was the amount of resources Coherent have devoted to applications development,” states Herbert Biller from Siemens. “They have a number of labs, with just about every industrial laser type known, available to perform tests on samples. Plus, their personnel have quite a bit of knowledge that can be applied to develop customer specific process recipes to ensure success for a particular application.”

Aki Hasegawa from Aflair, Inc. reports, “I thought the control software for some of the sub-systems was quite remarkable. Yet the interface is still simple enough for production line personnel to use. And application packages like SmartCut+ enable the user to perform very sophisticated operations that really enhance productivity and improve results.”

“We’re happy we had this opportunity to meet so many members of the photonics community and learn more about the incredibly diverse range of applications they’re involved in,” concludes Renneisen. “And, I am sure that they came away from the event knowing that, whatever you’re doing with lasers, Coherent have your applications covered.”

UCIMU MEETING: A RECORD-BREAKING 2018 FOR THE ITALIAN MACHINE TOOL, ROBOT AND AUTOMATION MANUFACTURING INDUSTRY. STATIONARY TREND EXPECTED FOR 2019

The 2018 results of the Italian machine tool, robot and automation manufacturing industry are, by far, the best ever achieved: double-digit increases were registered with regard to almost all main economic indicators, thus extending the largely positive trend started in 2014.

Ranking fourth among manufacturing countries, the Italian industry of the sector confirmed its third place among exporting countries, also strengthening its fifth place in the consumption ranking, as a testimony to the dynamism of domestic demand that took advantage of the incentive provisions for competiveness (Industry 4.0/Enterprise 4.0).

On the other hand, the forecasts for 2019 show a setback, for the first time after 5 years, mainly due to a situation of uncertainty and instability, both in the domestic and in the foreign markets.

This is in brief the framework described by President Massimo Carboniero, this morning, during the annual members’ meeting of UCIMU-SISTEMI PER PRODURRE, which was also attended by the President of Confindustria (Italian Industrial Federation), Vincenzo Boccia and by Marco Fortis, economist and Vice-President of Fondazione Edison.

THE FINAL RESULTS OF 2018 

According to the final data processed by the Economic Studies Department & Business Culture of UCIMU, in 2018, the output of machine tools, robots and automation systems reached 6,775 million euro, reporting an 11.3% upturn versus 2017. The outcome was due both to the positive trend of manufacturers’ deliveries in the domestic market, up by 15.2% to 3,112 million euro, and to exports, which attained 3,663 million euro, growing by over eight percentage points compared with the previous year.

In 2018, the main markets of destination for the Italian product offering of the sector were Germany (394 million euro +15.1%), the United States (354 million euro, +11.5%), China (341 million euro, -0.4%), Poland (229 million euro +41.7%), France (227 million euro, +6.7%), Spain (144 million euro, +7.9%), Russia (100 million euro, +11.9%) and Turkey (90 million euro, +2.6%).

The result of consumption was very positive: for the fourth consecutive year, it recorded a double-digit growth, totalling 5,164 million euro, i.e. 15.7% more versus 2017.

THE FORECASTS FOR 2019         

The trend of the Italian industry of the sector will remain more or less stationary in 2019, as highlighted by the forecast data processed by the Economic Studies Department & Business Culture of UCIMU. In particular, production should slow down its growth, increasing by 3.6% to 7,020 million euro; exports should reach the value of 3,900 million euro, i.e. 6.5% more compared with 2018. The export/output ratio is expected to grow to 55.6%.

Even consumption should be slower and attain 5,220 million euro (+1.1%), thus remaining on the same level as in 2018; the same trend will be experienced with regard to the manufacturers’ deliveries in the domestic market (3,120 million euro, +0.3%) and imports (2,100 million euro, +2.3%).

“After all, – commented the President of UCIMU, Massimo Carboniero –  considering the context and the quick evolution of the international political and economic scenario – we could already be satisfied, if these forecasts were really confirmed at the year’s end, as the situation is quite complicated, much more complicated than some months ago”.

COMMENTS AND PROPOSALS OF INDUSTRIAL POLICY

Package of Provisions with regard to 4.0

“With Industry 4.0 – pointed out Massimo Carboniero – the authorities started the most important plan of industrial policy that has been implemented in Italy from the post-war period to the present day. Super- and Hyper-Depreciation, the pillars of this programme, gave good results, fostering the replacement of obsolete machinery and encouraging the enterprises to interconnect their machines and systems thanks to the digital technologies with which they are equipped.”

“Now, we need a further turning point. Indeed, the content of these provisions fully meets the needs for competitiveness development and growth of enterprises, and in particular of the SMEs, which make up the framework of our industrial system. However, what is to be changed is the procedure by which all these provisions are made available”.

“We ask the Government to abandon the “logic of intermittency” by which to date the applicability of all measures in favour of the enterprises has been defined, as in the specific case of Industry 4.0 Plan, with Super- and Hyper-Depreciation. In order to grow, the Italian enterprises need a clear and defined picture concerning the medium/long-term measures. Only in this way, they will be able to plan their investments and the actions to be undertaken. Therefore, we ask for a change of approach and the creation of a Package of Provisions with regard to 4.0, which may be structural, free of the annual expectations and uncertainties connected with the possible re-confirmation of each measure included in the Plan, as experienced up to today. In detail, in response to the requirement for supporting the continuous product and process innovation of Italian enterprises, we ask the authorities to provide us with a single, structural document including all tax benefits related to the investments in Research & Development and to Super- and Hyper-Depreciation for the investments in new machinery, thus outlining a long-term, global project”.

Professional education and training 4.0 and young people

“New technologies bring new work, new tasks, new roles, new jobs and thus competences that are and will more and more be multidisciplinary. For this reason,  – went on the President of UCIMU –  with regard to professional education and training 4.0, we ask the authorities to review the provision for the tax credit related to professional education and training and most of all, to extend its applicability even in 2020. Currently, the tax credit is applied only to the work cost of the employees involved in professional education and training, for the hours of refresher courses. The most considerable part of a company’s education and training expenses is the cost of trainers: this expense item should also be included in the calculation of tax credit, as it usually makes up the most onerous component for small- and mid-sized companies. Unlike the provisions for competitiveness (Package of Provisions with regard to 4.0), we think that the measures related to professional education and training 4.0 should be managed and implemented according to a planning defined year by year, in line with the relevant needs of the Italian industry, because the organisational transformation of enterprises, activated by the digital revolution, has just started”.

“A separate discussion should concern the young, whom we should be able to offer appropriate job and professional growth opportunities. Despite a youth unemployment rate of over 30%, machine tool manufacturers  have great difficulty in finding appropriate professional figures, such as experts in mechatronics, electronics, IT and production technologies. Unfortunately, there is still a reduced number of young people that choose these school courses, specifically conceived for the jobs related to the world of automation and precision mechanics. Actually, technical high schools also offer very interesting professional education, training and job opportunities. Without forgetting that they are an excellent basis for the continuation of studies with the ITS, the High technical-technological Training Schools, proposing two-year courses after the high-school diploma to prepare the so-called Super-Experts. And with regard to the ITS schools, we also ask the Government to work and increase the number of these schools, especially in the areas with higher industrial concentration”.

Incentives for employment growth

“To incentivise the enterprises to hire new staff, besides a reduction of the so-called tax wedge, to the benefit of our employees’ pay-packet, we suggest that a provision should be introduced out for the young, which can allow the enterprises’ tax exemption for three years with regard to the newly hired people under the age of 30 years.”

Internationalisation and exhibitions

“Internationalisation should be implemented through all channels and instruments at our disposal, starting from the trade shows that represent the most effective marketing tool for us.

Therefore, – added Massimo Carboniero – we welcome the decision of the Government authorities to establish a tax credit for the Italian enterprises that take part in international exhibitions held abroad, in particular in non-EU countries. Nevertheless, it is necessary to identify the leading events, with the help of the entrepreneurial organisations, in order not to waste the available resources that are really not so large (only 5 million euro)”.

“On the other hand, we ask to consider the introduction of measures to encourage the “domestic” internationalisation of Italian SMEs. In this connection, we think it useful to provide for an increase in the resources, destined by the Ministry of Economic Development and ICE-Italian Trade Agency for inviting foreign operators to the international trade shows held in our country, thus granting more contacts, even foreign ones, to the exhibiting SMEs”.

“In addition, for the Italian exhibitions of international importance, we welcome the amendment included in the Growth Decree regarding the 30% Tax Credit that covers the out-of-pocket and promotion costs related to the enterprises’ participation in trade shows. However, in a logic of a wider internationalisation of the exhibitions held in Italy, we think that the “reward” should be addressed to the investments made by our SMEs to promote their participation in these trade shows abroad”.

Thyssenkrupp Materials Services continues to drive digital transformation: Since early 2019 an artificial intelligence solution (AI), supported by Microsoft’s cloud platform Azure, has been integrated into the processes of the largest materials distribution and service provider in the Western world. “alfred” supports his colleagues at Materials Services in dynamically managing the global logistics network with 271 warehouse sites and more than 150,000 products and services. As with his namesake – Alfred Krupp – all information comes together at alfred. As a first step, alfred will help to optimize transport routes and thus save the transport of thousands of tons of material per year. In addition, materials will be available more quickly at the right locations in the future. In the medium term, Materials Services will be able to make all processes along the supply chain more flexible, for example, in order to better take into account specific customer requirements for delivery speed, pricing or material quality.

Klaus Keysberg, CEO of thyssenkrupp Materials Services, summarizes alfred’s strengths: “Artificial intelligence is one of the technologies that will make a decisive contribution to competitiveness in materials distribution in the future. With alfred we are taking an important step towards making our processes even more efficient and optimizing our value chain. At the same time, he gives us better insight into our customers’ needs so that we can align our offerings accordingly. In the medium term, this holistic approach will also open up new business opportunities for us”.

Using Big Data systematically

With the AI, the approximately 14 million order items received annually by Materials Services can be processed and analyzed much more efficiently. For the first time, the materials experts are also bringing all company data together on a single platform. Using self-learning algorithms based on Microsoft Azure Machine Learning, alfred analyzes all relevant information, generates important findings and supports employees with appropriate recommendations: Which materials have to be assigned to which industry? Where are materials processed? What would be the most intelligent transport route to supply the customers with materials in the best possible way? What are the needs of the individual locations? “The intention is very clear: With alfred we are improving our own processes so that we can serve our customers all over the world more efficiently,” says Axel Berger, Head of Digital Transformation Office at Materials Services.

The focus is on customer benefit

At Materials Services, the digital transformation is aligned along the value chain and consistently placed at the service of customer benefit – whether directly or indirectly. “From procurement through warehousing and logistics to sales, we rely on integrated digitalization concepts. While we simplify cooperation with our suppliers in the area of procurement by means of a cloud-supported platform, for example, we create possibilities for networking internal machinery with our self-developed IIoT platform toii. toii allows us to flexibly coordinate and optimize the processes of warehousing and logistics. In sales, we offer our customers access to 150,000 products and services at 271 warehouse sites sites in the world’s largest virtual materials warehouse,” says Klaus Keysberg. As a link between all these areas, alfred fits into the ecosystem and ensures continuous optimization of speed and service quality through intelligent data processing with corresponding recommendations.

Lifelong learning with Microsoft

In the company’s own Digital Transformation Office in Essen, all strands of digitalization flow together. Here, integrated teams of IT experts, engineers and business coordinators work under the direction of Axel Berger on various digitalization projects that arise directly from the core business of Materials Services – including alfred. The materials experts were supported by Microsoft and its global cloud platform Azure. “Joining forces with Microsoft allows us to use advanced technologies for our in-house developments. This enables us to ensure that the projects are very closely linked to our core business on the one hand, and that they are technologically state-of-the-art on the other,” says Axel Berger.

“At this point in history, manufacturers need to become digital companies to lead in their industries. thyssenkrupp Materials Services is not only adapting digital technologies, they are building their own digital capabilities and portfolio to elevate their logistics business with AI services to the next level. They unlock new business opportunities by merging their industry know-how with the core of AI: large volumes of relevant data as well as strong machine learning methods and algorithms”, said Çağlayan Arkan, Global Lead Manufacturing & Resources, Microsoft.

Klaus Keysberg is also convinced of the synergies of the partnership. “The collaboration with Microsoft makes the implementation of projects like alfred much more efficient. Ultimately, it will enable us to apply our in-house developments more quickly, gather important insights there and develop new business models from them.