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February 4, 2025 24 mins

Emphasizing the urgency for modernization in the manufacturing sector, this episode unpacks the vital role of smart manufacturing as the way forward.

Key discussions revolve around overcoming barriers, fostering a proactive mindset, and implementing incremental changes for long-term success.

• Urgent need for modernization due to aging infrastructure
• Modernization defined as upgrading systems, not total overhauls
• Benefits include increased productivity, reduced downtime, and access to real-time data
• Importance of shifting from reactive to proactive thinking
• Misconceptions about smart manufacturing clarified
• Key barriers like cultural resistance and funding constraints outlined
• Practical steps for implementing a modernization strategy discussed
• Connected machines and flexible production lines highlighted as essential elements

Remember to keep asking why...

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Host: Chris Grainger

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Transcript

Episode Transcript

Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Welcome to Eco Ask why a podcast that dives into
industrial manufacturing topicsand spotlights the heroes that
keep America running.
I'm your host, chris Granger,and on this podcast, we do not
cover the latest features andbenefits on products that come
to market.
Instead, we focus on advice andinsight from the top minds of
industry, because people andideas will be how America

(00:24):
remains number one inmanufacturing in the world.
Welcome to Eco Asks why.
I'm your host, chris Granger.
I'm excited to be here with youtoday.
Got my brand new Eco jacket on,so excited about this one.
This year I was able to get mea rain jacket, so it's another
great benefit for working foreco.

(00:45):
And again, if you listen to ecoas well and you're interested
in getting into this industry,go check out eco onlinecom and
then hover over to the careersection.
We're always looking for greatpeople.
I can tell you someone who'sbeen here with eco for several
decades now it's a great companyto work for.
They take care of their peopleand I get to have some some Now.
It's a great company to workfor.
They take care of their peopleand get to have some great swag

(01:06):
like this from time to time.
So I got my eco hat, my ecojacket, so pumped up for it.
But anyway, we're so excited in2025 to put a big focus on
smart manufacturing, on why thatmatters, through a lot of work

(01:28):
over the years to build upresources and information and
content, and not to mention allthe wonderful experts at EECO to
help you with your smartmanufacturing journey.
Now for the last episode.
We spent a lot of time talkingabout why now is the time.
Now's the time Got to take someaction and we can't just sit on
the sidelines any longer.
So hopefully you enjoyed thatepisode.
Go back and listen to it ifthat's something that you missed

(01:50):
, and you're curious aboutstarting your own smart
manufacturing journey.
So now for this episode.
In particular, we're going tobe looking at modernization and
why that matters inmanufacturing and, ultimately,
why smart manufacturing is thekey component to it for all

(02:11):
working.
And let's just start at agenesis why, why, why, why does
this even matter?
And really it comes down toobsolescence.
So manufacturing in the U?
S really is is at a criticaljuncture right now because most
of the industrial infrastructureis aging, it's just old.
There's legacy equipment outthere that's struggling to keep

(02:34):
pace with the demands thatmanufacturing is calling for,
and as someone who's called onmanufacturing in the Southeast
United States for most of mywhole life, I can just tell you
firsthand that there's, there'sequipment, there's gear, there's
motor control centers, thereare motors, there's all sorts of
this stuff that's out therethat we're just doing the best
we can.
I'm not picking on anyone, butthere's some stuff is just it's

(02:57):
just reaching the end of life,right, and when that happens,
you see stats out there like 75%US plants are 20 percent old.
So it's not just me saying whatI'm saying, these are
statistics that back it up.
Legacy automation systems arereally reaching the end of their
their, their liferepresentation.

(03:21):
And then you have unscheduleddowntime.
That's costing manufacturingindustry $20 billion annually.
So think about that $20 billionunscheduled downtime.
That happens when things failand you're not planning for it.
Things get older, they justfail.
So at EECO we see thesechallenges firsthand Again.

(03:41):
I've seen this stuff forseveral decades now and they're
failing to meet the standards.
And a big part is the spareparts are so much harder to find
these days.
And manufacturers of the OEMthey may just be gone, like the
original OEM manufacturers.
They may not even exist anymore.

(04:02):
So put a big burden on manypeople out there and it's
bottlenecked so much and it's areally it's a big liability.
If you look at it across, ifyou really just look at it from
a strategic standpoint, this isa big liability.
And this also, if you chose toreframe it in another context,

(04:24):
this is a big opportunity.
Big opportunity Because itgives you an opportunity to
shift towards smartmanufacturing.
You may hear it called Industry4.0.
There's lots of different termsout there, but it's not a
matter of if it's going tohappen.
It's a matter of when.
And then how are you going todo it, and this is what we want

(04:45):
to walk through in thisparticular episode.
All right, so now let's talkabout what is modernization,
particularly from amanufacturing context.
Okay, so that modernization isthe process of upgrading
equipment and systems to meettoday's operational and
technological standards.
Okay, so you got to havetechnology and systems that meet

(05:09):
your requirement, and at ECO,we're emphasizing that
modernization doesn't have to bea complete overhaul, right,
many people go there.
They just want to overhauleverything.
We can't do that, no.
Everything.
We can't do that, no.
Instead, retrofitting andstarting small offers a
practical, cost-effective way toenhance your system performance

(05:35):
without having to do a wholerip and replace.
Let's just be real.
So maybe it's just startingsmall with adding smart sensors
to existing machinery, and thenthat little bit of
transformation can all of asudden start making a big impact
on those legacy systems thatyou have and then you can start
getting the data that you reallyneed.
So this retrofitting alsoallows you manufacturers out

(05:59):
there to access the benefits ofmodernization while you manage
the cost and you minimize thedisruption that's out there.
So when you start thinking aboutbenefits of actually just
moving forward any modernizationtype of project, think about
increased productivity right atthe gate, because you're

(06:20):
increasing the performance ofyour equipment and thus reducing
your downtime.
And when you do that, guesswhat?
You're just going to make morestuff.
You just are.
Your output is just going to goup and you're also opening
yourself to have access toreal-time data.
So that data collection givesyou, in the moment, real-time

(06:41):
insights for better decisionmaking.
At the end of the day also,modernization is going to save
you a lot of cost, because thatunplanned downtime is someone
who used to work in the serviceindustry and recognizes you know
we used to make a lot of moneywhen equipment failed we also
recognize that costs you a lotof money when equipment fails.
So avoiding that that is goingto make such a bottom-line

(07:02):
impact, and that really, at theend of the day, what all this is
about safer work environments,because modern systems usually
are going to have more advancedsafety features and enhancements
.
It's going to take every people.
So it really though just to makea little caveat on this it's
more than just upgradingtechnology.
It starts with a shift inmindset.

(07:25):
It starts with a shift inmindset because manufacturers
have to move from this reactivethinking of if it's not broke,
don't fix it, to proactive, ofwhat can we do to enhance it.
And again, here at ECO, this iswhat we do very well.
We guide you through thisprocess with strategies tailored
to whatever your specific needsare, and you may be thinking

(07:49):
well, why does this matter?
Like right now.
And again, let's just kind ofgo back through why does this
matter right now?
Because you may have themindset of you know what?
I'm just going to delay it, I'mjust going to put it off.
We'll do it next year.
We've got a lot going on.
Look, I'm telling you, becareful, because competitors are
out there.
They're adopting thesetechnologies right now, and when

(08:11):
you start thinking aboutbarriers for opportunities, that
aging infrastructure is thebiggest one.
You're never going to outpacethe clock, you just aren't.
So demands aren't going to godown, they're only going to go
up.
Your infrastructure is nevergoing to get younger, it's just
increasing with age, with everypassing day.
Thus you're going to have morebreakdowns, more inefficiencies,

(08:33):
more limitations aroundconnectivity.
That is a big factor and if youdon't start with a formal
modernization plan, you may nothave a whole lot of success
because many plans lack acomprehensive strategy for the
overall upgrade.
So without that clear roadmapand understanding, okay, I'm at
point A right now.
What do I need to do to get topoint Z?

(08:54):
You don't go straight from A toZ.
No, there's a whole lot ofsteps between there.
You need to define that, youneed to lay it out.
Then, once you lay that out,you better build the business
case up, because this is goingto cost funds.
It's going to cost funds, you.
You better build the businesscase up, because this is going
to cost funds.
It's going to cost funds.
You have to secure that fundingfor these projects.
That can be challenging, but ifyou start small, incremental
upgrades, you know A, b, c, d.

(09:16):
Just work the process, work theplan and you can start
demonstrating return oninvestment.
You can take a real complexissue and turn it into a
compelling case for furtherinvestment, and we all know if
we do that, one of the key areaswe can start pulling in to get
that buy-in is giving people thedata that they want real-time

(09:40):
and these modernized systems.
They really give youunprecedented access to
real-time data.
So it's not just aboutcollecting the data, like we've
been doing that for years.
It's about using the data tomake better, faster decisions.
Then those decisions are goingto drive efficiency,
profitability, success, safety,all that.

(10:01):
So everything.
When we start thinking aboutmodernization, that's all we
have to start with.
When we start thinking aboutsmart manufacturing, rather, we
have to start with modernization.
Why it's important?
Because it's a progressiveprocess.
Again, you're not going to dothis overnight, but those small
steps really build on existingcapabilities.
Now there are some barriers thatyou need to be aware of,

(10:25):
because you know you got lots ofclear benefits out there.
We know that there's reasons todo it, but there's going to be
challenges and I'm just going tobe real with you.
Here are a few of them becauseat ECO, we've encountered them
and we've identified them.
Here are some of the mostcommon barriers that you may run
into and also some things toconsider if they do come across

(10:45):
your plate.
Things to consider if they docome across your plate.
So the very first one is acultural resistance, because
there are so many organizationsout there that are hesitant to
embrace change.
They just are.
You ever heard this before?
We've always done it that way.
That's dangerous words for abusiness, particularly one when
you start thinking abouttechnology.
How about funding constraints?

(11:06):
And that's real, becausesecuring capital requires a
demonstrated, clear ROI andsometimes that can be difficult
to clearly outline and define.
We're here to help you withthat.
And then there's a skills gap,and that's probably one of the
most salient truths that's outthere, because training,
upskilling workers that is socrucial for success.

(11:28):
Many of these technologiesrequire competent, capable type
of thinkers who can thinkthrough what is the real benefit
, what's not just the featuresthat are cool and flashy, but
what's really going to impactthe bottom line.
There's a skills gap there, butthese barriers aren't
insurmountable.
They're not.

(11:49):
We can help you directly buildtailored modernization plans to
address these challenges andstart working a clear path
forward, especially down theelectrical modernization path,
and this is imperative.
This is so imperative to startthis strategy now, because it's
not just about stayingcompetitive, although we want

(12:10):
you to do that.
We want you to thrive, we wantyou to be the number one in your
industry.
When you start thinking aboutsmart manufacturing and
investments there, you're goingto start seeing things like the
efficiency is just going to goup.
Those operations are going tobecome more streamlined.
Downtime is just going to startgoing down big time.

(12:31):
You're not going to have thosedowntime disruptions,
particularly the unplanned ones.
Your quality is going to go upAll of a sudden, you're going to
be thinking aboutfuture-readying your
infrastructures because, astechnology continues to change I
mean, let's just face it AI isstarting to come into the play a
lot more too.
You're going to have to havemore and more capability to

(12:51):
bring that in.
And then the data integrationyou got to be able to make the
decisions with the data thatyou're gathering.
Ok, so that leads us that wholemodernization path we just just
spent some time unpacking leadsus to smart manufacturing, and
you maybe ask Chef O'Kerr, whatin the world to smart
manufacturing?
And you may be asking Chef, ofcourse, what in the world is
smart manufacturing and reallyit's the next phase of

(13:13):
industrial evolution.
So, when you start convergingyour OT, which is your
operational technology, withyour IT, which is your
information technology, that'sthe bridge, and smart
manufacturing creates adigitally integrated system that
responds to real time data, toyour demands and the factory

(13:34):
conditions.
Definition as the synthesis ofadvanced manufacturing
capabilities and digitaltechnologies to collaborate and
create highly customizableproducts faster, cheaper, better

(13:55):
and greener.
I bet you that sounds prettyawesome.
So just think through amanufacturing system where you
have machines communicating whatappears to be seamlessly,
production lines that aredynamic due to the demands, and

(14:18):
supply chains that are visiblefrom one end to the other.
Okay, this isn't somethingthat's like in a fairytale a
long, long time ago.
No, that's not what this is.
No, this is where we're headedIn eco.
We have the expertise to helpyou navigate this effectively.
Yeah, some of these steps areso important.

(14:39):
Now, I wanted to just think.
I thought it was important whenI was putting this together to
define what smart manufacturingis not.
It's easy to focus on what itis and the features and benefits
, and all that stuff isimportant, but what is it not?
And what we're trying to dohere is to dispel some common
myths that might defer you fromeven getting started.

(15:03):
Ok, and first, out the gate,understand what smart
manufacturing is not.
It's not a rip and replacesolution.
It doesn't require your team togo in and tear out everything
in your infrastructure.
Again, many legacy systems canbe retrofitted with some smart
technologies and sensors anddevices.

(15:25):
This allows you to build onyour current capabilities
without incurring the cost ofthat overall, that overhaul that
could be extensive for you.
So don't think rip and replace.
Sometimes that may be required,or maybe something that you
choose to do and you budget for,but it's not a requirement to
get started.
It's also not aone-size-fits-all approach,

(15:48):
because every facility out therelet's just face it every one of
them is different.
So smart manufacturing is abouttailoring your solutions to
meet the unique needs and goalsof your operation.
Right, this is not cookie cutterstuff like manufacturing,
because sometimes can be.
No, this is not.
You know, we're just going todo this, we'll keep doing this
everywhere, everywhere,everywhere.
No, we've got to understandwhat matters to you.

(16:10):
It's also not an instanttransformation.
Okay, again, this isprogressive.
So starting incrementally, itwill help you avoid the
disruptions that may cause yousome stumbling blocks and it's
going to give you a chance todemonstrate that ROI at every

(16:32):
stage.
It's also not exclusively hightech, because you have
technologies like IoT sensorsand AI power analytics and they
play a key role.
But smart manufacturing isequally important about
improving processes and data.
So even small upgrades and youmay think like they're really

(16:55):
small they can deliver bigresults.
And also the last thing, smartmanufacturing it doesn't always
have to be, you know, to thepoint where it's prohibitively
expensive, because it's If itbreaks the bank and you're not
getting a benefit, why do it?
But if you can prioritizestrategic upgrades, then you can

(17:17):
start managing those stages andspreading out those costs over
a longer period of time Because,again, if you're working
towards the path, that's themain thing.
So it's not going to enable youto just do whatever you want.
We have to really be a goodsteward here and as we do that,

(17:39):
if you need help, again, theteam at ECO this is what we do
every day.
We go and we help thesebusinesses take the steps with
confidence and help themmaximize the value of their
investments.
All right, now, if we actuallyput this into practice, we need
to get practical here.
At some point the we need toget practical here.
At some point rubber's got tomeet the road.
So what does it look like inaction?

(17:59):
So here are a couple of keyelements to consider.
Connected machines is first andforemost.
That's the first thing thatshould come to mind.
So you have the IIoT, that'sthe Industrial Internet of
Things, right, you probably hearit called IIoT more often than
not.
So you have that.
And you have these machinesthat are equipped with smart
sensors and they'recommunicating on a regular basis

(18:25):
, and probably one of thegreatest examples I've seen of
this is through predictivemaintenance schedules and
technology now that are outthere on equipment and they're
constantly relaying back databased off machine capability and
diagnostics how it's performingat them in the moment.
Then you can make the decisionsfrom there.
So those connected machines areso, so valuable.

(18:47):
Then you also have flexibleproduction lines.
Okay, so traditional lines arerigid, right, and it takes a lot
of work to change around,because you just focus on that
single product production.
But in a smart factory, modularsystems can be reconfigured to
meet the change demands.
So again, you can start reallyshifting things up at scale.

(19:08):
And then the data-drivendecisions are so important,
because if you're collectingdata real time and you're
analyzing it real time, you'reputting yourself in a better
position to make more informeddecisions that are going to
improve your efficiency.
That's going to also reduceyour waste and enhance that
product quality.
So you've seen other countriesout there, like Germany, lead

(19:31):
the charge initiatives like theIndustry 4.0 and Factories of
the Future and we're playingcatch up, and that's okay.
We're going to catch up andwe're going to take the lead,
because ECO is working with theearly adopters out there who are
already experiencing some ofthe benefits that I've already
talked about earlier.
So we're connecting, we'rehelping these leaders experience

(19:55):
these benefits and they'refinding the increased efficiency
and they're lowering theirdefects and they're seeing
customer satisfaction levelshigher than they ever have
before.
So really, at the end of theday, this is your call to action
.
Ok, modernization and smartmanufacturing.
They represent something thatis extremely transformative for

(20:18):
the, for the industry in general, and you need to be in a
position to start really leadingthe charge, because whatever
industry in that you findyourself in, like, whatever your
competitors are, I guaranteeyou they're thinking about this
and they're taking those steps.
Now here's what at Eco, we'rehere to help you.
We do not want you to think youhave to do this alone.

(20:39):
We have a very comprehensiveguide to smart manufacturing
that gives you some actual stepsyou can take right now.
But, more importantly, we havethe people.
We have the people ready tostep in, to listen, to really
understand what you're saying,step in to listen, to really
understand what you're sayingand then take that information
back and come back with acustomized solution to give you

(20:59):
what you need the most.
So look again, ecoonlinecom isthe way you connect with us.
Highly, highly, highlyencourage you to get your online
account set up.
So, if you don't have thatonline account set up, go, get
that set up right now so thatyou can access all our systems,
all the different ways that wecan help, we can connect.
If you want us to come in andmeet with your team, do a tour,

(21:22):
have a conversation with youabout your goals.
This is really where we put themost emphasis and focus.
We're really a hands-ondistributor.
We want to have thatrelationship and elevate that
relationship to the next level.
We also have labs in all thedifferent regions that we
service.
So I've seen this firsthand foryears.

(21:42):
If there's a technology thatyou're interested in and you
want to see it firsthand and putyour hands on it and play with
it and understand, ask thequestions.
We've built the labs for you tocome in and do that directly,
so we'll try to put a link tothose labs.
You can actually schedule timedirectly for those labs in the
show notes here for this episode.
So thank you so much forlistening.
Again, ecoonlinecom is thewebsite, so go head over there

(22:03):
now.
You can even download the SmartManufacturing Guide directly
from the website.
We'll have a link in the shownotes for the guide as well, and
then as we move forward throughthe next several months it'll
take us out to the summer we'regoing to still be unpacking each
month ways that you canunderstand smart manufacturing
at a deeper level so that youcan make decisions now that are

(22:29):
going to impact your operations,your business, your career.
It's going to be great, solooking forward to sharing these
insights with you and thesereflections as we move forward.
Again, you can connect with usover at ecoonlinecom.
Connect with us on LinkedIn aswell.
We're very active on LinkedIn.
You may want to connect on ourYouTube channel.
We put lots of information outon our YouTube channel on a

(22:51):
regular basis and you know wehave lots of ways within the
branches and locationsthemselves for training
opportunities, to grow,questions get up, to connect
with experts, and all of that isfound at ecoonlinecom.
So thank you for listening to.
Eco Asks why.
You know, share this out withothers, for sure, particularly
ones those that are working inmanufacturing.

(23:13):
We just want to get just ourmessage out as much as we can to
encourage others.
And, again, if you know peoplewho are interested in coming
into the electrical industry, Iwould just encourage you to
check out Electrical EquipmentCompany, again, someone who
started as a co-op engineer.
Now, several decades later, Ican just tell you one thing it's
been a blessing for me, mycareer, my family, just the

(23:36):
things that they've done to takecare of us, and it really does
feel like a family here atElectric Equipment Company.
So go check it out.
Ecoonlinecom.
Give us a rating and review forthe show.
That would be wonderful.
If you took the time to do that, you can connect with us in all
the different places Imentioned.
Go check out the show notes.
We'll have lots of ways you canconnect and find the different

(23:56):
ways to get synced up with usthere.
So have a great day.
Thank you so much for listeningand just remember, keep asking
why.
Thank you for listening to.
Eeco Asks why this show issupported ad-free by Electrical
Equipment Company.
Eeco is redefining theexpectations of an electrical
distributor by placing peopleand ideas before products.

(24:19):
Please subscribe and share withyour colleagues and friends.
Also leave comments, feedbackand any new topics that you
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