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Local Technology Integrators Are Keeping up Their Game

Eric Palencia - Integra Automation
CEO

STORY INLINE POST

Wed, 01/22/2020 - 09:26

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Led by major multinationals, the automotive industry has made great strides incorporating Industry 4.0 principles. These changes are making production processes faster and more agile but they are also forcing suppliers to adapt or perish, explains Eric Palencia, CEO of Integra Automation. “The Industry 4.0 ecosystem is being led by OEMs and if Tier 2 and 3 companies do not adapt to these technologies, they will be unable to continue working with major players,” he says.

Industry 4.0 has introduced many benefits to the automotive industry, from predicting equipment malfunctions to more efficient supply chains. While foreign manufacturers might introduce their solutions from abroad, there are many advantages from acquiring a local developer, Palencia says. “Some companies only consider the costs involved in buying equipment but they do not consider the costs involved if maintenance is not provided immediately when a system breaks down. Production line stoppages cost automotive companies a significant amount of money and if the supplier is located abroad, the company may have a longer waiting period before the equipment is repaired.”

Integra Automation is a Mexican company with over 20 years of experience. The company has developed solutions for the pharmaceutical and food and beverage industries but the automotive sector is now its strongest. “About 60 percent of our clients are from the automotive sector,” says Palencia. He adds that the company has always been close to the automotive industry, both through the good times and the bad. “When the 2008 crisis hit the automotive industry, we had to reduce our staff by almost 75 percent but we were able to grow alongside the industry during its better moments.”

As Mexico’s automotive industry has grown steadily from that crisis, Integra Automation had to evolve its service offering to keep up. “Due to the industry’s accelerated growth, our business model evolved from a software company to incorporate electric solutions and then to offer comprehensive solutions.” Now, Integra Automation offers fully integrated solutions that include software, hardware, maintenance and spare parts. The company also offers automation and control solutions from other brands it represents.

To work with automotive companies, Integra Automation first has to ensure its clients have fully automated equipment so that data can be collected and analyzed. This information can be used to develop a series of products to increase efficiency or reduce unnecessary costs for the client. “With smaller companies, our first step is to identify the current status of their technological infrastructure. From that point on, we can guide them through the entire process,” Palencia says.

Integra Automation has also worked to change the perception of local suppliers as inadequate. “Traditionally, Mexican companies acquired their software from foreign developers because they did not believe that there were good local suppliers,” Palencia says, adding that there are also challenges specific to the size of the company. Large businesses have fully automated their systems and are fully ready to incorporate Industry 4.0 principles but smaller companies often rely on manual operators and analogous machines, which makes it much harder for the latter to incorporate Industry 4.0.

Cost plays another important role when choosing a developer. Palencia explains that most of Integra Automation’s competitors are from Asia, the EU or the US, which can supply less expensive solutions. “Many of these foreign companies have specialized their technologies to a degree that allows them to lower their manufacturing costs. We have to develop specific technological solutions for a wide variety of applications for different clients, industries and processes, which raises production costs.”

Integra Automation and other local companies, however, offer several advantages for local companies. Key among them is the absence of a language barrier. “During the analysis and design step, one of our advantages is sharing the same language. Excellent communication is key when addressing technical issues. Communication errors can lead to larger errors when implementing the project,” Palencia says. Another significant advantage is working in the same time zone, which permits faster communication.

The power of good communication has also helped the company build a strong client base. “Integra Automation has a good relationship with its clients thanks to constant communication that allows us to properly identify their needs. Most of our clients come through word of mouth and many continue working with us for many subsequent projects.”

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