Industry News - Industrial Ethernet, China and Japan.

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ARCwire for the Week Ending July 16, 2004 reaching over 60,000 professionals worldwide.

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===== ARC BENCHMARKING SURVEYS =====

>> Industrial Ethernet Practices and Plans

The purpose of this survey is to understand manufacturers' current practices and future plans regarding Industrial Ethernet networks. This survey is designed to capture these practices and plans, and to help identify best practices for Industrial Ethernet networks. This survey is available in both English and Japanese language versions.

Persons responding to the survey will be given the results via e-mail. You will receive the results for FREE by taking the survey.

To take the survey, please click here: www.arcweb.com/ss2/wsb.dll/ARC/IndustrialEthernet2004.htm

===== INDUSTRY TRENDS =====

>> Immense Growth Potential for China's Low Power AC Drives Market

China's growing economy, investment friendly policies, and a manufacturing industry that caters to the domestic and export markets creates an immense growth opportunity for AC drives. China's low power AC drives market will grow at a Compounded Annual Growth Rate of 12.1% over the next five years.

>> Japan's Industry Activities Improve

METI (Ministry of Economy, Trade and Industry) of Japan released the final statistics for May, 2004 with upward modifications from those previously reported on an interim basis.

Specifically, industrial production in May recorded an increase of 0.8 percent compared to the previous month, which is the upward correction by 0.3 points from the number already reported on an interim basis.

Industrial shipment index recorded 1.3 increase compared to the previous month. The inventory index recorded 1.8 decrease compared to the previous month, which is the upward correction by 0.2 points from the interim report.

===== COMPANY NEWS & BRIEFINGS =====

>> Field Report: Honeywell Users Group Symposium

The Honeywell Users Group (HUG) recently gathered in Phoenix, AZ for their annual 5-day event. More than 600 participants, from 26 countries, gathered to exchange ideas and discuss industry challenges and opportunities. The symposium was developed by and for industrial users of Honeywell automation solutions. A 12-member, customer-led steering committee determined the symposium theme and agenda. Over 50 customers presented at this year's symposium. Presentation topics ranged from legacy system migration to alarm rationalization and management to the benefits of wireless technology. Representatives from Anheuser Busch, Georgia Pacific, DuPont, and many other Fortune 500 organizations delivered presentations on a variety of topics. The agenda offered high-level general sessions, networking sessions, and industry breakout sessions for refining/petrochemicals; pulp, paper and printing; power generation; chemicals; consumer goods; metal, minerals and mining; oil and gas; and life sciences.

An unusual presentation took place by way of a keynote address by Honeywell International Chairman and CEO, David Cote. This is the first time that a Honeywell Chairman addressed HUG and underscores the commitment that the corporation has to industrial automation solutions in general and the Honeywell Process Solutions group (HPS). This was reaffirmed in Cote's speech both in terms of HPS R&D investments and also by highlighting that the Corporation is a significant global manufacturer and end-user in its own right.

New products introduced at this year's symposium included Honeywell Integrated Operator Node (I.O.N.) The latest component of Honeywell's portfolio of kits and enhancements, Honeywell I.O.N. transforms legacy Honeywell TDC Universal Stations (US) into operator consoles with Experion functionality.

The Operations Management Pro (OM Pro) R200 provides refinery workers with the information they need to maintain normal plant operations. OM Pro sends immediate notifications of process disturbances, enabling operators to continuously monitor plant performance and steer operations closer to economic targets.

The new POMSnet production management tool optimizes operational performance in the Life Sciences industry. POMSnet also complies with CFR 21 Part 11 and ISA manufacturing standards. Profit Suite R220 is a new suite of advanced control and optimization applications.

Three more international Users Group gatherings are scheduled for 2004. Honeywell Asia Pacific customers will gather in Australia Aug. 22-25. A conference for customers in Europe, the Middle East, and Africa is scheduled for Oct. 4-10 in France. Customers from across Southeast Asia will meet in China Nov. 9-12.

By Andy Peters, ARC Advisory Group

 

===== ACQUISITIONS & PARTNERING NEWS =====

>> Schneider Electric completes acquisition of Andover Controls

Schneider Electric completed the acquisition of Andover Controls, a Balfour Beatty company. Andover Controls offers Building Automation and Security and had sales of $169 million in 2003. Schneider Electric views Building Automation as one of their new growth platforms and strategically important for their growth. The acquisition complements its position in this market with the previous acquisition of TAC in June 2003.

ARC Senior Analyst Dave Clayton says, "The acquisition of Andover Controls is a continuation of Schneider Electric's goal to strengthen its presence in the global BAS and building securities markets through acquisition. With the acquisition of Andover Controls, Schneider Electric significantly strengthens its position in the global building securities business as well as the company's position in the overall BAS market in North America. Security and access control is a key application for Andover Controls, which was strengthened by the company's acquisition of Integral Technologies in 2000."

Clayton continued, "Andover Controls' business is a good complement for TAC's geographic focus and Schneider Electric's vertical focus. Geographically, Andover Controls' strength and strong reputation in the North American BAS market is a good complement to TAC's strong presence in the European BAS market. From a vertical industry perspective, Andover Controls' strength in the pharmaceutical, food & beverage, and biotech markets is a good complement to Schneider Electric's target focus on the pharmaceutical and food & beverage verticals."

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