THE FUTURE OF THE MANUFACTURING INDUSTRY IN FLANDERS

URBAIN VANDEURZEN

CHAIRMAN OF THE BOARD OF DIRECTORS

LEUVEN, 4 DECEMBER 2015

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Agenda

The future of the manufacturing industries is: DIGITAL

Flanders Make, joining forces for a next generation manufacturing industry in Flanders

Additive manufacturing, spearhead of Industry 4.0

Conclusions & closing remarks

THE DIGITAL

TRANSFORMATION OF INDUSTRY

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Every product, service and industry is exposed to “digital disruption”

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Projected digital disruption by industry through 2025

Fast-moving

Middle of theroad

Slow-moving

Today

Incremental through 2025

Potential change limited by regulatory, legal, etc.

Note: Rankings based on examination of >300 companies engaged in Digical projects, plus additional industry interviews. Relative levels of disruption calculated based on review of value chain impact and importance both today vs. future (i.e. which value chain segments are most important to success in that industry and how much disruption has occurred and will occur in those segments)Source: Bain study ‘Leading a Digical transformation’ (2014)

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New digital competitors will challenge the market position of the European industry (ref R. Berger, BDI 2015)

European Industry Today

Position in the value chain

Share of the value chain

(1)USA: 83%1500 USD bn

(2) Asia: 17%300 USD bn

(3) Europe: 0%

Market capitalisation of top 20 internet firms (2014: USD)

By 2025, potential loss of 605 billion Euros

ICT’s contribution to value added

Possible loss of customer interface

New competitors

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New digital competitors will challenge the market position of the European industry (ref R. Berger, BDI 2015)

Digital Transfor-mation

Position in the value chain

Share of the value chain

Market capitalisation of top 20 internet firms (2014: USD)

By 2025, potential loss of 605 billion Euros

ICT’s contribution to value added

Possible loss of customer interface

New competitors

(1)USA: 83%1500 USD bn

(2) Asia: 17%300 USD bn

(3) Europe: 0%

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Eight trends define digitization agenda in Industrial Companies

KEY DIGITIZATION TRENDS

• Refers to the digital interconnection of objects (from analog to “smart” things)

Internet of Things (IoT)

• Use of intelligent, flexible robots that adapt to demands of manufacturers

Advanced robotics

• Umbrella term used for the collection & analysis of vast amounts of digital data

Big Data

• Shift in customer preferences and behavior from offline todigital channels

Omni-Channel

• Cyber Physical Systems (CPS) enable decentralized, modular and flexible production

Smart factory (Germany: Industry 4.0)

• Integrated engineering along entire value chain including suppliers and customers

Digital engineering

• Increasing use of mobile devices and associated apps in enterprises

Mobile applications

• Manufacturing process where successive layers of material in different shapes create the final product

3D printing (3DP)

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3

2

84

5

7

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Underlying enablers for digitization: Cyber security and connectivity infrastructure

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Industry 4.0 digitizes the entire industrial value chain

Traditional Digitized

ServiceSales

3D-Printing

Distributors,own stores

Direct Sales force

Inbound logistics

Phone/ Call Center

E-channel (sales)

BIG DATA

BIG DATA

E-channel (service)

Installed assets

Purchasing

BIG DATA

BIG DATAField service

Service managementR&D

Manufacturing and assembly processes

Outbound logistics

Cyber physical production system(s)

Operations cloud

BIG DATA

Users

Subcontractors

3D-Printing

Production

BIG DATADigital

engine-ering

Procurement

R&D

Supplier Customer

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Digital transformation: the key questions

Where?

How?

Understand where does digital impact a given industry and company. What is the level of digital disruption?

Understand how a company is positioned relative to competitors to profit from the digital

disruption and how it can anticipate / react.

What?

Detect and Qualify what technological drivers & digital trends are emerging.

Autonomous vehicles

Infotainment

Smart Factory

Drones

Smart Facilities

4P-LogisticsSmart

Energy Grids

New propositions?

FLANDERS MAKE

JOINING FORCES FOR A NEXT GENERATION MANUFACTURING INDUSTRY IN FLANDERS

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Mission Flanders Make

▲mechatronics

▲product development methods

▲advanced manufacturing technologies

“It is our mission to strengthen the long-term

international competitiveness of the Flemish

manufacturing industry by performing excellent,

industry-driven, pre-competitive research in

the following domains: “

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Digital & Human centered productionprocesses

Smart interconnected machines

Autonomousvehicles

Additive Manufacturing

Advanced Power & Drive Trains

Technology competences

Infrastructure based services

Flanders Make: strategic priorities

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Flanders Make: first year achievements

Broad network with 60 core member

companies

Team of 400 top researchers

>20 new research projects since mid

2014With participation of more than 30 large

companies & SME’s

focus on collaboration/open innovation

€ 50 million research investment

ADDITIVE MANUFACTURING

SPEARHEAD OF INDUSTRY 4.0

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World wide market evolutionadditive manufacturing to reach 10 billion USD by 2020 ( Wohlers Ass )

Products- Systems- Software

Services

Million U

S$

4.1 billion US$ in 2014

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Flanders pioneering in “additive manufacturing” technologies and industrial solutions

3D Printing in Flanders

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Flanders Make: additive manufacturing research program

Prepare additive manufacturing for serial production

Research

infrastructure

Large scale

production

processes

Integrated

production

systems

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Prof. J.P. Kruth, leading 25 years of top research in additive manufacturing

Designing and building proprietary AM machines since 1992

Unique team of experts:mechatronics & machines, optics, lasers, controllers, software, process technology, materials, quality control, sustainability, etc.

Proprietary SLS/SLM machines:- 10 more at LayerWise

Huge “Mammoth SLA” stereolithographymachines: >10+ at Materialise (dashboard)

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Congratulations to Prof. J.P. Kruth for the 2015 “Bower Science award” fromthe Franklin Institute

Edison1899

Bell1912

Einstein1935

Hubble1939

Hawking1981

“Knight of Laser Technology”

JP Kruth2015