ENDRESS & HAUSER
ENDRESS & HAUSER SA
Made To
Measure PRODUCTION: Emily Ayson
Within modernity, it seems that the need to have access to a continual stream of precise information is crucial to everyday living. From the mundane, like the speedometers in our cars, to the more critical such as the temperature meters in a nuclear power plant, we have come to rely on technology to keep us safe, aware and able to complete our daily tasks. Industries and enterprises that develop such products are therefore under tremendous pressure to ensure that their goods meet or exceed expectations. One such company that is fulfilling this demand in South Africa is Endress and Hauser SA, a leading manufacturer of industrial measurement devices. Enterprise Africa speaks to Managing Director Rob Mackenzie to find out more.
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INDUSTRY FOCUS: AUTOMATION
ROB MACKENZIE, MD ENDRESS+HAUSER SA, GARTH STRACHAN, OFFICE OF THE DEPUTY DIRECTOR GENERAL, DEPARTMENT OF TRADE AND INDUSTRY, AND KLAUS ENDRESS, CEO ENDRESS+HAUSER GROUP
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The Endress and Hauser enterprise was established in Germany in 1953, but has since flourished into a worldwide operation. Specialising in products, solutions and services for industrial process measurement and automation, the company develop and manufacture a range of instruments which gauge and record industrial processes such as flow, temperature, level and pressure. These crucial devices allow industrial plants and factories to perform efficiently, economically and without damaging the environment. The South African division came into being in 1984 and it has developed from a small level provider of measuring instruments to a R300 million business. The company has an incredibly strong name within South Africa and notably holds the monopoly of the local marketplace. Mackenzie notes how although there are similar businesses within the country, the technology they supply is often rather basic or they cannot supply more specialist products such as radar measuring equipment. In contrast, Endress and Hauser SA can provide a full spectrum of sophisticated tools to even the most niche companies. Yet this does not mean that Endress and Hauser SA has been untouched by the difficulties presented by a turbulent economy. In 2016, net sales for the company as a whole fell by 0.2%, although sales figures in South America and South Africa generally
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showed increase. Mackenzie notes that financial success “very much varies from region to region… We are in quite a difficult economic stage…business is challenging for sure”. He explains that the South African division may have only actually grown by 1% last year, but far from being disheartened, the company continues to set its sights on ensuring that its products deliver and enhance the businesses of its valued clients. According to Mackenzie, the Endress and Hauser SA mantra and strategy is centred around continual product improvement and development, rather than the injection of completely new products into the marketplace. He says: “We are launching updated products all the time…but the strategy of ours is called ‘evolution not revolution’. We are not necessarily trying to change the way that we launch our products into the marketplace.” Although the application of the company’s products could potentially span dozens of industries, they have chosen instead to focus on a core collection of seven spheres. For example, Mackenzie notes: “We’ve traditionally had a very wide industry spread… Historically, we have not been very strong in the oil and gas industry, but we have grown that industry significantly in the last 10 – 15 years.” Indeed, this ability and drive to focus is currently being exercised, as Endress and Hauser SA begins a pioneering foray
into the implications and applications of ‘big data’. The underlying principle of ‘big data’ is that the more information that can be gathered, recorded and analysed, the more efficient human activity and existence can be. This is particularly pertinent when it comes to plants and factories where machines need to always be working to optimal capacity, as do the tools that measure this output. Disruptions to either pieces of equipment can cause financial and temporal strains and affect productivity and safety. Consequently, not only does Endress and Hauser SA manufacture solid, reliable components, but they have also developed and incorporated into their meters ‘Heartbeat’ technology, a regulatory and recording system. The system allows measuring devices to give real-time, in situ information and diagnostics to users about their machines. This data can even be downloaded, printed and potentially accessed remotely with cloud technology, providing a constant and tangible reference archive. Such software eliminates the need for regular human intervention; essentially as Mackenzie notes: “With big data, instruments are able to in some degree self-diagnose themselves.” Such a development has obvious positive industrial implications and will bring significant wealth and renown to the company. However, as Mackenzie stresses, the intention “is certainly not to help us, the intention is to help our customers”. Such a sentimental vein flows through all projects that Endress and Hauser SA works on, with a further example evident in its contributions to leading the way in water management. Water is almost a sacred resource in South Africa and therefore positive involvement in this industry, by
ENDRESS & HAUSER SA
default, comes with a reputation for caring about the world and those it in. Endress and Hauser SA produces incredibly accurate flow meters which are used in mines to monitor water levels and quality. Any notable changes can have drastic effects on the surrounding environment and indeed population, so perhaps in a nuanced way, the company is playing its part in protecting against such disasters. This dedication to the welfare of others is also demonstrated in Endress and Hauser SA’s efforts to provide tutelage and jobs to often disadvantaged young people. The success of such a niche industry lies in maintaining a steady workforce to continue its good work and name. However, access to education in South Africa is not universal and has a very low emphasis on vocational or practical skills training. As such, Mackenzie explains how the company is playing a vital role in ensuring that knowledge and skills can
be passed on to the next generation. He says: “It is difficult to find the right people. We do what we can; we have our own internship or learnership programme so we typically train up around about eight to ten people every year in instrumentation giving them the necessary skills they need to work in the marketplace.” He also goes on to note that 30 – 40% of their apprentices stay within the company and that there is high potential for climbing up the career ladder. Similarly, he explains that Endress and Hauser SA is able to act as a source of employees, providing staff with specific skillsets to the other alike or allied businesses that they build close relationships with. We often take for granted the technologies that help us to function efficiently and stay safe; this is perhaps even more so the case for the companies that manufacture such articles. However, the importance of their work should
never be underestimated, nor should efforts that are made to have an impact on matters outside of the business itself. Endress and Hauser SA tirelessly works to supply quality and reliable products, but with an emphasis on ensuring that clients are left satisfied and their needs met. With a proven track record of innovative evolution, the company needs no giant fanfare or marketing ploys to secure its success; it’s clear that when it comes to being the best in its field, Endress and Hauser is already made to measure.
ENDRESS & HAUSER SA +27 11 262 8000 info@za.endress.com www.za.endress.com
Ashcroft Instruments: The Ashcroft Brand of products, are German Manufactured and have been synonymous with quality and reliability in field instrumentation since 1852.
Pressure Gauges
Pressure/Differential and Temperature Switches
Chemical seals, flushing rings, flanges, manifolds and capillary assemblies.
Temperature Indicators
Protea Automation Solutions A division of Protea Electronics (Pty) Ltd Contact: Chantelle Fisher Product Manager Ashcroft Instrumentation Cell: 082 576 6140 or 011 -719 5737 Email: chantellef@protea.co.za Web Page: www.protea.co.za
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AFRICA
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Issue No.61
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JEGIE PADMANATHAN:
People Are The Power
of Bidvest Prestige ALSO IN THIS ISSUE:
CCI South Africa / Thebe Tourism Group / RPP Developments / ALG Estates
A S F E AT U R E D I N
ENTERPRISE AFRICA
AUGUST 2017