Group MD, Cygnet Group

2. Matthew Kimpton-Smith
Managing Director
Cygnet Group Ltd

4. The Role of Automation in the
Future of Manufacturing and the
Opportunities it Will Bring

5. What is Industrial Automation?
INDUSTRIAL AUTOMATION
• The use of control systems and software to independently operate,
control and monitor a mechanised system.
INDUSTRIAL AUTOMATION
• Increases manufacturing output while reducing operating costs.

6. How big is the Market?
Industrial Automation
£100bn Globally
Factory Automation
£45bn Globally
Process Automation
£55bn Globally
Source: Credit Suisse estimates

7. Reasons to Invest in Automation
• Increase in output
• Increase in flexibility
• Reduction of waste
• Save space in high value manufacturing
areas
• Reducing operating costs
• Reduce capital costs
• Improving product quality
• Complying with H&S
North America
Manufacturing output & manufacturing
employees
North America
Operational stock of robots & manufacturing output per
hr of labour
Source: IFR, Bureau of Labour Statistics Source: IFR, Bureau of Labour Statistics, United Nations Statistics

8. Automation Examples
Robotics Automated Handling Auto Guided Vehicles

9. Role of Automation
• Increases manufacturing output
• Reduces operating costs
• Improves product quality

10. The Role of Automation in the
Future of Manufacturing & the
Opportunities it will Bring

11. Market Outlook
• The market has grown by approximately 6% per annum since 2003, this
is roughly 1.7 times global industrial production.
Automation Markets vs. Global IP Factory & Process Automation Growth Rates
Source: Credit Suisse Economic Research Source: Credit Suisse estimates
• Global capex outlook for key automation end-markets such as
Automotive and Petrochemicals is stronger today compared to
previous years.

12. Emerging Economies
‘Lewis Turning Point’
• Rural labour has largely been utilised
• Demographic polices are shrinking the working age
population
• Rising education levels are reducing the proportion of the
population wanting to enter the manufacturing sector
• Wage inflation – pressure on manufacturing costs

13. China - Current
Dwindling Supply of Manual Labour (China) Hourly Manufacturing Labour Costs (China)
Population aged between 15-19 minus population aged between 50-54 and
new college students.
Source: CEIC, UN, Credit Suisse estimates
Source: Credit Suisse Global Strategy

14. China - Future
• Government actively encouraging the rise of manufacturing technology
• Increasing levels of automation will help China manage wage inflation
• Companies migrating their manufacturing facilities west
Robot Shipments to China
Source: IFR, Bureau of Labour Statistics, Credit Suisse Research

15. Robotics
• Robot density in most geographic regions remains low. This augers well for
rising penetration as a driver of automation investment.
IP & Robot Shipment CAGR’s (2000-2011) Robot Density by Region (2002 vs. 2011)
Source: IFR Source: Robotic Industries Association
• Penetration of automation in emerging markets remains low
• Emerging markets account for 50% of global manufacturing output
• Largest future growth opportunity for investment exists in Non-Japan Asia, which
currently accounts for 35% of the world’s manufacturing output, but only has robot
density of 11

16. Opportunities
• China needs to invest in automation to maintain
competitiveness
• Opportunities in emerging markets and Non-Japan Asia
• As overheads rise in the east manufacturing could migrate west

17. Factory of the Future
Henry Ford’s assembly line
1913
• Improved design software will increase product
development
• The same software will be used to program machining
stations and more dexterous robotics
• New materials such as Carbon Fibre will result in new
production processes
• 3D printing promises to demolish economies of scale
• Manufacturing in the future will become even less
labour intensive
• Labour costs will become less important
Automated assembly line
2014

18. Cygnet Group orders around the world
In the last 3 years
North and South America
USA
Canada
Brazil
Mexico
West Europe
France
Spain
Germany
Portugal
Italy
Norway
Austria
East Europe
Turkey
Belarus
Poland
Russia
Hungary
Middle East
India
Saudi Arabia
Dubai
Far East
China
Korea
Taiwan
Vietnam
Thailand
Indonesia
Singapore
Other
Australia
New Zealand
South Africa

19. Partners
FORMOSA PLASTICS CORPORATION

20. Head Office
Swan House
New Cheshire Business Park
Wincham Lane
Wincham
Northwich
Cheshire. CW9 6GG
United Kingdom
Tel: +44 1606 810550
Cygnet China
Shanghai
China
Cygnet USA
PO Box 17856
Greenville
SC29606
USA
Tel: +1 864 3151720