Today, it is hard to imagine industrial production processes being implemented without automation systems. Industrial or factory automation is a vast field that involves simultaneous working of software, machinery, software, and information systems to achieve increased production, superior quality, lower cost, increased flexibility, and higher accuracy. It has three levels namely supervisor level, control level, and field level which intercommunicate between them. The first level involves the use of systems such as industrial PC (IPC), human machine interface (HMI), and WLAN. Within the control level, there is the use of automation systems such as programmable logic controllers (PLCs), HMIs, and field bus (CAN). The field level describes the equipment such as sensors and actuators such as magnetic valves, servomotors, power switches, and more interacting with a micro PLC or remote I/O system.
There has been a steady growth in the factory automation market in recent years. It is expected to reach billions by 2025. A surge in need for high product quality, the expectation of high reliability in high volume production, progression in technology, the maturity of the industrial processing technologies, and growing need for mass production with reduced operation cost are the factors responsible for the rapid development of the industry.
The concept is gaining acceptance from various industries owing to its numerous benefits. Manufacturers from all over the world are implementing automatic systems in manufacturing and other processes in order to stand out from the market competitiveness. For instance, Kontrol Energy, a Canadian company providing smart energy solutions and technologies, and Toyota Tsusho Canada Inc. (TTCI), the trading arm of the Toyota Group recently announced a partnership with the aim of scaling their solutions across a large customer base. Tempo Automation, an electronics manufacturer for prototyping formed an agreement with Lockheed Martin, an aerospace and defense company to expand software automation. Dassault Systèmes, the European software company partnered with Swiss-Swedish robotics firm ABB to develop software for industrial processes. Some other developments took place recently, including the Japanese motorcycle firm, Yamaha Motors’ recent announcement of showcasing several factory automation technologies at Hannover Messe 2019 which will be held from April 1 to April 5. Another is industrial automation solutions company, Omron Automation Americas’ announcement to exhibit advanced technology for flexible manufacturing, traceability, and more at the Automate Show that will be held in Chicago from April 8 to 11 2019.
Kontrol Energy and Toyota Tsusho Partnership
In March 2019, Kontrol Energy and Toyota Tsusho formed an agreement to offer smart factory technology solutions to OEMs in the automotive industry to increase production, manage energy, improve operating efficiencies, and reduce operating costs via digitization, real-time data analysis, and machine learning. This can be achieved by the integration of Kontrol’s Internet of Things (IoT) hardware and software products with Toyota Tsusho’s operating improvement platforms and power generation products for the North American automobile and parts OEMs. According to the agreement, Kontrol offers the designing and monitoring software, quality assurance, and technical support to TTCI and its clients. It also does the designing and installation of building automation systems and heating and ventilation equipment. On the other hand, Toyota Tyushi obtains customers and carries out engineering, deployment, and after-sales services with clients.
Tempo Automation Forms Contract with Lockheed Martin
Tempo Automation formed a contract agreement with Lockheed Martin in March 2019. The reason behind the latter choosing the former is that Tempo greatly focuses on their software automation technology to develop a digital thread from creation to delivery. Its software links several operations of finished PCB assemblies such as order processing, parts sourcing, factory operations, shipment, and more. Tempo’s automated processes facilitate quick quotation, development, and delivery of high complexity printed circuit board assemblies. The company’s customer base can minimize the time for production and launch and obtain useful information throughout the manufacturing process, leading to superior technology in finished products.
Dassault Systèmes Collaborates with ABB
The aim of the partnership between Dassault and ABB is to develop software for digital industrial solutions based on the integration of the firms’ PLM and automation software products. The collaboration combines ABB’s Ability platform and Dassault Systèmes’ 3DEXPERIENCE platform and develops on the firms’ strong installed base, deep domain expertise, and global customer access. Ulrich Spiesshofer, CEO at ABB said that the alliance would help best serve their customers and drive innovation and customer value, as well as transform their value chain to tap the enormous opportunities of industrial digitalization.
Yamaha Motors Showcases Factory Automation Technologies
At Hannover Messe, which is the world’s leading trade show for industrial technology, Yamaha Motors will be demonstrating technologies such as the Linear Conveyor Module LCM 100, a linear motor-based transport robot and the fast and precise SCARA robot. The products are aimed at facilitating increased productivity and variability on production lines, thereby providing the best solutions for factory automation. The LCM 100 can quickly transport work pieces and can be assembled directly on the slider, which reduces the transfer time drastically. The robot can change the stop position and process similar operations. The SCARA robot ‘YK 400 XR’ greatly helps in shortening the cycle time of the coating process.
Omron Automation Americas Exhibits at Automate Show
At the Automate Show, Omron Automation will be exhibiting many of the world’s cutting-edge manufacturing technologies for traceability and flexible manufacturing. The products are aimed at aiding manufacturers to enhance productivity, flexibility, and human-machine interaction. The company plans to present its Factory Harmony exhibit, a multifaceted display offering a vision of the manufacturing floor of the future. The demos show ways in which machines can interact effectively with humans on the factory floor. Other robotic solutions to be exhibited include the company’s TM Series collaborative robot, which is a flexible machine designed to facilitate human-machine collaboration, and the LD Series mobile robots that are designed to transport substances easily throughout the factory. Both the products are aimed at aiding companies to cater to the burgeoning need for customization without totally reconfiguring their production lines.
Economic Activity in Myanmar to Remain at Low Levels, with the Overall Outlook Bleak
Myanmar’s economy and people continue to be severely tested by the ongoing impacts of the military coup and the surge in COVID-19 cases in 2021. Following an expected 18 percent contraction of the economy in the year ended September 2021, the World Bank’s Myanmar Economic Monitor, released today, projects growth of 1 percent in the year to September 2022. While reflecting recent signs of stabilization in some areas, the projection remains consistent with a critically weak economy, around 30 percent smaller than it might have been in the absence of COVID-19 and the February 2021 coup.
The near-term outlook will depend on the evolution of the pandemic and the effects of conflict, together with the degree to which foreign exchange and financial sector constraints persist, as well as disruptions to other key services including electricity, logistics and digital connectivity.
“The situation and outlook for most people in Myanmar continues to be extremely worrying,” said World Bank Country Director for Myanmar, Cambodia and Lao PDR Mariam Sherman. “Recent trends of escalating conflict are concerning – firstly from a humanitarian perspective but also from the implications for economic activity. Moreover, with a low vaccination rate and inadequate health services, Myanmar is highly vulnerable to the Omicron variant of COVID-19.”
Among recent signs of economic stabilization, mobility has recovered to 2020 levels after falling around 70 percent below pre-COVID-19 baseline levels in July 2021, though it remains about 30 percent below pre-pandemic levels for retail, recreation, and transport venues. This is likely to have supported the services sector, though overall consumer demand continues to be weak due to recent shocks to incomes and employment. In the manufacturing sector, output and employment also appear to be stabilizing, and exports have recovered in recent months.
Nevertheless, economic activity continues to be affected by substantial weaknesses in both supply and demand. Firms continue to report sharp reductions in sales and profits, cashflow shortages, and a lack of adequate access to banking and internet services. Results from the latest World Bank firms’ survey indicate that around half of all companies experienced disruptions in the supply of inputs and raw materials in October, largely because of increases in costs amid logistics constraints and a sharp depreciation of the kyat. Farmers continue to be affected by higher prices for key inputs, restricted access to credit, and ongoing logistics constraints.
Ongoing economic pressures are having a substantial effect on vulnerability and food security, particularly for the poor, whose savings have been drained as a result of recent shocks. The share of Myanmar’s population living in poverty is expected to have doubled compared to pre-COVID-19 levels. Combined with pressures on agricultural production, rapid price inflation and reduced access to credit are expected to further compound food security risks.
Over the longer term, events since February 2021 are expected to limit Myanmar’s growth potential. “Most indicators suggest that private investment has fallen markedly, and previously viable projects are becoming unviable as demand remains weak, the cost of imports has risen, and kyat-denominated revenues are worth less in foreign currency terms,” said World Bank Senior Economist for Myanmar Kim Edwards. “In addition, lost months of education, together with large increases in unemployment and displacement, will substantially reduce human capital, skills and productive capacity over the longer term.”
Structural Reforms Needed to Put Tunisia on Path to Sustainable Growth
Decisive structural reforms and an improved business climate are essential to put Tunisia’s economy on a more sustainable path, create jobs for the growing youth population and better manage the country’s debt burden, according to the Winter 2021 Edition of the World Bank’s Tunisia Economic Monitor.
Titled “Economic Reforms to Navigate out of the Crisis” (in French, “Réformes économiques pour sortir de la crise”), the report estimates a slow economic recovery from COVID-19, with projected growth of 3% in 2021. Weighing on this recovery is rising unemployment, which increased from 15.1% to 18.4% in the third quarter of 2021, affecting the youth and people in the western regions hardest.
The report outlines how the weak recovery puts pressure on Tunisia’s already strained public finances, with the budget deficit still elevated at 7.6% in 2021, despite a small contraction from 9.4% in 2020. The budget deficit is projected to gradually decline, reaching 5% to 7% of GDP in 2022-23, helped by lower health-related expenditures and provided that the moderately positive trajectory of spending and revenue are maintained. However, Tunisia’s rising public debt will be hard to finance without decisive public finance and economic reforms, the report noted.
“Just like everywhere else, COVID-19 has adversely affected Tunisia’s economy and the report strongly highlights the need to address longstanding challenges to sustainable growth, including improving the business environment,” said Alexandre Arrobbio, World Bank Country Manager for Tunisia. “To emerge from this crisis, Tunisia needs to adopt decisive reforms to promote private sector development, boost competitiveness and create more jobs, especially for women and youth.”
The first chapter of the report analyzes potential reasons behind Tunisia’s slow economic recovery and highlights two specific factors: the country’s reliance on tourism and transport services; and the rigidity of the business climate, including restrictions on investments and competition which constrain the reallocation of resources in the economy.
The second chapter elaborates on key barriers to competition, arguing that Tunisia’s current regulatory environment restricts competition and discourages the development of new businesses. Looking ahead, the report recommends that policy reforms to ensure a level playing field in every sector are essential in order to boost employment for Tunisians and to increase purchasing power.
Lebanon’s Crisis: Great Denial in the Deliberate Depression
The scale and scope of Lebanon’s deliberate depression are leading to the disintegration of key pillars of Lebanon’s post-civil war political economy. This is being manifested by a collapse of the most basic public services; persistent and debilitating internal political discord; and mass brain drain. Meanwhile, the poor and the middle class, who were never well served under this model in the first place, are carrying the main burden of the crisis.
According to the World Bank Lebanon Economic Monitor (LEM) Fall 2021 “The Great Denial”, Lebanon’s deliberate depression is orchestrated by the country’s elite that has long captured the state and lived off its economic rents. This capture persists despite the severity of the crisis –one of the top ten, possibly top three most severe economic collapses worldwide since the 1850s; it has come to threaten the country’s long-term stability and social peace. The country’s post-war economic development model which thrived on large capital inflows and international support in return for promises of reforms is bankrupt. In addition, the collapse is occurring in a highly unstable geo-political environment making the urgency of addressing the dire crisis even more pressing.
The LEM estimates real GDP to decline by 10.5 percent in 2021, on the back of a 21.4 contraction in 2020. In fact, Lebanon’s GDP plummeted from close to US$52 billion in 2019 to a projected US$21.8 billion in 2021, marking a 58.1 percent contraction—the highest contraction in a list of 193 countries.
Monetary and financial turmoil continue to drive crisis conditions, under a multiple exchange rate system which poses valuable challenges on the economy. The sharp deterioration in the Lebanese Lira persisted in 2021, with the US$ banknote rate and the World Bank Average Exchange rate depreciating by 211 and 219 percent (year-on-year), respectively, over the first 11 months of the year. Exchange rate pass through effects on prices have resulted in surging inflation, estimated to average 145 percent in 2021—ranking 3rd globally after Venezuela and Sudan. Inflation is a highly regressive tax, disproportionally affecting the poor and vulnerable, and more generally, people living on fixed income like pensioners. Food inflation remains concerning as it forms a larger proportion of the expenses incurred by poorer households who are struggling to make ends meet with their deteriorating purchasing power.
Government revenues are estimated to almost halve in 2021 to reach 6.6 percent of GDP, marking the 3rd lowest ratio globally after Somalia and Yemen. The expenditure contraction was even more pronounced, led partially by drastic cutbacks in primary spending, which has reinforced the economic spiral. Meanwhile, gross debt is estimated to reach 183 percent of GDP in 2021, taking Lebanon to the 4th highest ratio in the world preceded only by Japan, Sudan and Greece.
A rare relative bright spot in 2021 has been tourism, which helped hold the current account deficit-to-GDP ratio steady.
Starting Spring 2021, a disorderly termination of the foreign exchange (FX) subsidy commenced and was in full force by the summer. The path authorities followed to the subsidy removal was opaque, inadequately coordinated and lacked timely pro-poor alleviation measures. As a result, subsidy removal mostly benefited importers and smugglers while precious and scarce FX resources were drained.
“Deliberate denial during deliberate depression is creating long-lasting scars on the economy and society. Over two years into the financial crisis, Lebanon has yet to identify, least of all embark upon, a credible path toward economic and financial recovery,” said Saroj Kumar Jha, World Bank Mashreq Regional Director. “The Government of Lebanon urgently needs to move forward with the adoption of a credible, comprehensive and equitable macro-financial stabilization and recovery plan and accelerate its implementation if it is to avoid a complete destruction of its social and economic networks and immediately stop irreversible loss of human capital. The World Bank reconfirms its readiness to continue to support Lebanon in addressing the pressing needs of its people and challenges affecting their livelihoods.”
As detailed and called for in previous issues of the LEM, this strategy would be based on: (i) a new monetary policy framework that would regain confidence and stability in the exchange rate; (ii) a debt restructuring program that would achieve short-term fiscal space and medium-term debt sustainability; (iii) a comprehensive restructuring of the financial sector to regain solvency of the banking sector; (iv) a phased, equitable, fiscal adjustment to regain confidence in fiscal policy; (v) growth enhancing reforms; and (vi) enhanced social protection.
Particularly, initiating a comprehensive, well-structured and swift reform of the electricity sector is critical to address the long-standing and compounding challenges of this sector which is at the center of Lebanon’s economic and social recovery. In addition, Lebanon needs to step-up efforts to ensure efficient and prompt delivery of social protection assistance to the poor and vulnerable households struggling under the continuing economic crisis.
The Special Focus section of the LEM “Searching for the External Lift in the Deliberate Depression” examines the reasons for the weaker than expected increase in exports considering the Lebanese Lira’s sharp depreciation; it analyzes the failure thus far for the external sector to sufficiently benefit from increased price competitiveness and become a more robust driver of growth. The Special Focus finds that Lebanon’s exports are inhibited by three factors (outside of the crisis itself): (i) (pre crisis) economic fundamentals; (ii) global conditions; and (iii) political/institutional environment.
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