Welcome to Eco Ask why a podcast that dives into industrial manufacturing topics and spotlights the heroes that keep America running. I'm your host, chris Granger, and on this podcast, we do not cover the latest features and benefits on products that come to market. Instead, we focus on advice and insight from the top minds of industry, because people and ideas will be how America remains number one in manufacturing in the world. Welcome to Eco Asks why. I'm your host, chris Granger. I'm excited to be here with you today. Got my brand new Eco jacket on, so excited about this one. This year I was able to get me a rain jacket, so it's another great benefit for working for eco. And again, if you listen to eco as well and you're interested in getting into this industry, go check out eco onlinecom and then hover over to the career section. We're always looking for great people. I can tell you someone who's been here with eco for several decades now it's a great company to work for. They take care of their people and I get to have some some Now. It's a great company to work for. They take care of their people and get to have some great swag like this from time to time. So I got my eco hat, my eco jacket, so pumped up for it. But anyway, we're so excited in 2025 to put a big focus on smart manufacturing, on why that matters, through a lot of work over the years to build up resources and information and content, and not to mention all the wonderful experts at EECO to help you with your smart manufacturing journey.

Now for the last episode. We spent a lot of time talking about why now is the time. Now's the time Got to take some action and we can't just sit on the sidelines any longer. So hopefully you enjoyed that episode. Go back and listen to it if that's something that you missed, and you're curious about starting your own smart manufacturing journey. So now for this episode. In particular, we're going to be looking at modernization and why that matters in manufacturing and, ultimately, why smart manufacturing is the key component to it for all working.

And let's just start at a genesis why, why, why, why does this even matter? And really it comes down to obsolescence. So manufacturing in the U? S really is is at a critical juncture right now because most of the industrial infrastructure is aging, it's just old. There's legacy equipment out there that's struggling to keep pace with the demands that manufacturing is calling for, and as someone who's called on manufacturing in the Southeast United States for most of my whole life, I can just tell you firsthand that there's, there's equipment, there's gear, there's motor control centers, there are motors, there's all sorts of this stuff that's out there that we're just doing the best we can. I'm not picking on anyone, but there's some stuff is just it's just reaching the end of life, right, and when that happens, you see stats out there like 75% US plants are 20 percent old. So it's not just me saying what I'm saying, these are statistics that back it up. Legacy automation systems are really reaching the end of their their, their life representation.

And then you have unscheduled downtime. That's costing manufacturing industry $20 billion annually. So think about that $20 billion unscheduled downtime. That happens when things fail and you're not planning for it. Things get older, they just fail. So at EECO we see these challenges firsthand Again. I've seen this stuff for several decades now and they're failing to meet the standards.

And a big part is the spare parts are so much harder to find these days. And manufacturers of the OEM they may just be gone, like the original OEM manufacturers. They may not even exist anymore. So put a big burden on many people out there and it's bottlenecked so much and it's a really it's a big liability. If you look at it across, if you really just look at it from a strategic standpoint, this is a big liability. And this also, if you chose to reframe it in another context, this is a big opportunity. Big opportunity Because it gives you an opportunity to shift towards smart manufacturing. You may hear it called Industry 4.0. There's lots of different terms out there, but it's not a matter of if it's going to happen. It's a matter of when. And then how are you going to do it, and this is what we want to walk through in this particular episode.

All right, so now let's talk about what is modernization, particularly from a manufacturing context. Okay, so that modernization is the process of upgrading equipment and systems to meet today's operational and technological standards. Okay, so you got to have technology and systems that meet your requirement, and at ECO, we're emphasizing that modernization doesn't have to be a complete overhaul, right, many people go there. They just want to overhaul everything. We can't do that, no. Everything. We can't do that, no. Instead, retrofitting and starting small offers a practical, cost-effective way to enhance your system performance without having to do a whole rip and replace. Let's just be real. So maybe it's just starting small with adding smart sensors to existing machinery, and then that little bit of transformation can all of a sudden start making a big impact on those legacy systems that you have and then you can start getting the data that you really need. So this retrofitting also allows you manufacturers out there to access the benefits of modernization while you manage the cost and you minimize the disruption that's out there.

So when you start thinking about benefits of actually just moving forward any modernization type of project, think about increased productivity right at the gate, because you're increasing the performance of your equipment and thus reducing your downtime. And when you do that, guess what? You're just going to make more stuff. You just are. Your output is just going to go up and you're also opening yourself to have access to real-time data. So that data collection gives you, in the moment, real-time insights for better decision making. At the end of the day also, modernization is going to save you a lot of cost, because that unplanned downtime is someone who used to work in the service industry and recognizes you know we used to make a lot of money when equipment failed we also recognize that costs you a lot of money when equipment fails. So avoiding that that is going to make such a bottom-line impact, and that really, at the end of the day, what all this is about safer work environments, because modern systems usually are going to have more advanced safety features and enhancements. It's going to take every people.

So it really though just to make a little caveat on this it's more than just upgrading technology. It starts with a shift in mindset. It starts with a shift in mindset because manufacturers have to move from this reactive thinking of if it's not broke, don't fix it, to proactive, of what can we do to enhance it. And again, here at ECO, this is what we do very well. We guide you through this process with strategies tailored to whatever your specific needs are, and you may be thinking well, why does this matter? Like right now. And again, let's just kind of go back through why does this matter right now? Because you may have the mindset of you know what? I'm just going to delay it, I'm just going to put it off. We'll do it next year. We've got a lot going on.

Look, I'm telling you, be careful, because competitors are out there. They're adopting these technologies right now, and when you start thinking about barriers for opportunities, that aging infrastructure is the biggest one. You're never going to outpace the clock, you just aren't. So demands aren't going to go down, they're only going to go up. Your infrastructure is never going to get younger, it's just increasing with age, with every passing day. Thus you're going to have more breakdowns, more inefficiencies, more limitations around connectivity. That is a big factor and if you don't start with a formal modernization plan, you may not have a whole lot of success because many plans lack a comprehensive strategy for the overall upgrade.

So without that clear roadmap and understanding, okay, I'm at point A right now. What do I need to do to get to point Z? You don't go straight from A to Z. No, there's a whole lot of steps between there. You need to define that, you need to lay it out. Then, once you lay that out, you better build the business case up, because this is going to cost funds. It's going to cost funds, you. You better build the business case up, because this is going to cost funds. It's going to cost funds. You have to secure that funding for these projects. That can be challenging, but if you start small, incremental upgrades, you know A, b, c, d. Just work the process, work the plan and you can start demonstrating return on investment.

You can take a real complex issue and turn it into a compelling case for further investment, and we all know if we do that, one of the key areas we can start pulling in to get that buy-in is giving people the data that they want real-time and these modernized systems. They really give you unprecedented access to real-time data. So it's not just about collecting the data, like we've been doing that for years. It's about using the data to make better, faster decisions. Then those decisions are going to drive efficiency, profitability, success, safety, all that. So everything. When we start thinking about modernization, that's all we have to start with. When we start thinking about smart manufacturing, rather, we have to start with modernization. Why it's important? Because it's a progressive process. Again, you're not going to do this overnight, but those small steps really build on existing capabilities.

Now there are some barriers that you need to be aware of, because you know you got lots of clear benefits out there. We know that there's reasons to do it, but there's going to be challenges and I'm just going to be real with you. Here are a few of them because at ECO, we've encountered them and we've identified them. Here are some of the most common barriers that you may run into and also some things to consider if they do come across your plate. Things to consider if they do come across your plate. So the very first one is a cultural resistance, because there are so many organizations out there that are hesitant to embrace change. They just are.

You ever heard this before? We've always done it that way. That's dangerous words for a business, particularly one when you start thinking about technology. How about funding constraints? And that's real, because securing capital requires a demonstrated, clear ROI and sometimes that can be difficult to clearly outline and define. We're here to help you with that. And then there's a skills gap, and that's probably one of the most salient truths that's out there, because training, upskilling workers that is so crucial for success. Many of these technologies require competent, capable type of thinkers who can think through what is the real benefit, what's not just the features that are cool and flashy, but what's really going to impact the bottom line. There's a skills gap there, but these barriers aren't insurmountable. They're not. We can help you directly build tailored modernization plans to address these challenges and start working a clear path forward, especially down the electrical modernization path, and this is imperative. This is so imperative to start this strategy now, because it's not just about staying competitive, although we want you to do that. We want you to thrive, we want you to be the number one in your industry.

When you start thinking about smart manufacturing and investments there, you're going to start seeing things like the efficiency is just going to go up. Those operations are going to become more streamlined. Downtime is just going to start going down big time. You're not going to have those downtime disruptions, particularly the unplanned ones. Your quality is going to go up All of a sudden, you're going to be thinking about future-readying your infrastructures because, as technology continues to change I mean, let's just face it AI is starting to come into the play a lot more too. You're going to have to have more and more capability to bring that in. And then the data integration you got to be able to make the decisions with the data that you're gathering.

Ok, so that leads us that whole modernization path we just just spent some time unpacking leads us to smart manufacturing, and you maybe ask Chef O'Kerr, what in the world to smart manufacturing? And you may be asking Chef, of course, what in the world is smart manufacturing and really it's the next phase of industrial evolution. So, when you start converging your OT, which is your operational technology, with your IT, which is your information technology, that's the bridge, and smart manufacturing creates a digitally integrated system that responds to real time data, to your demands and the factory conditions. Definition as the synthesis of advanced manufacturing capabilities and digital technologies to collaborate and create highly customizable products faster, cheaper, better and greener. I bet you that sounds pretty awesome. So just think through a manufacturing system where you have machines communicating what appears to be seamlessly, production lines that are dynamic due to the demands, and supply chains that are visible from one end to the other.

Okay, this isn't something that's like in a fairytale a long, long time ago. No, that's not what this is. No, this is where we're headed In eco. We have the expertise to help you navigate this effectively. Yeah, some of these steps are so important. Now, I wanted to just think. I thought it was important when I was putting this together to define what smart manufacturing is not. It's easy to focus on what it is and the features and benefits, and all that stuff is important, but what is it not? And what we're trying to do here is to dispel some common myths that might defer you from even getting started.

Ok, and first, out the gate, understand what smart manufacturing is not. It's not a rip and replace solution. It doesn't require your team to go in and tear out everything in your infrastructure. Again, many legacy systems can be retrofitted with some smart technologies and sensors and devices. This allows you to build on your current capabilities without incurring the cost of that overall, that overhaul that could be extensive for you. So don't think rip and replace. Sometimes that may be required, or maybe something that you choose to do and you budget for, but it's not a requirement to get started. It's also not a one-size-fits-all approach, because every facility out there let's just face it every one of them is different. So smart manufacturing is about tailoring your solutions to meet the unique needs and goals of your operation.

Right, this is not cookie cutter stuff like manufacturing, because sometimes can be. No, this is not. You know, we're just going to do this, we'll keep doing this everywhere, everywhere, everywhere. No, we've got to understand what matters to you. It's also not an instant transformation. Okay, again, this is progressive.

So starting incrementally, it will help you avoid the disruptions that may cause you some stumbling blocks and it's going to give you a chance to demonstrate that ROI at every stage. It's also not exclusively high tech, because you have technologies like IoT sensors and AI power analytics and they play a key role. But smart manufacturing is equally important about improving processes and data. So even small upgrades and you may think like they're really small they can deliver big results. And also the last thing, smart manufacturing it doesn't always have to be, you know, to the point where it's prohibitively expensive, because it's If it breaks the bank and you're not getting a benefit, why do it? But if you can prioritize strategic upgrades, then you can start managing those stages and spreading out those costs over a longer period of time Because, again, if you're working towards the path, that's the main thing. So it's not going to enable you to just do whatever you want.

We have to really be a good steward here and as we do that, if you need help, again, the team at ECO this is what we do every day. We go and we help these businesses take the steps with confidence and help them maximize the value of their investments. All right, now, if we actually put this into practice, we need to get practical here. At some point the we need to get practical here. At some point rubber's got to meet the road. So what does it look like in action? So here are a couple of key elements to consider.

Connected machines is first and foremost. That's the first thing that should come to mind. So you have the IIoT, that's the Industrial Internet of Things, right, you probably hear it called IIoT more often than not. So you have that. And you have these machines that are equipped with smart sensors and they're communicating on a regular basis, and probably one of the greatest examples I've seen of this is through predictive maintenance schedules and technology now that are out there on equipment and they're constantly relaying back data based off machine capability and diagnostics how it's performing at them in the moment. Then you can make the decisions from there. So those connected machines are so, so valuable.

Then you also have flexible production lines. Okay, so traditional lines are rigid, right, and it takes a lot of work to change around, because you just focus on that single product production. But in a smart factory, modular systems can be reconfigured to meet the change demands. So again, you can start really shifting things up at scale. And then the data-driven decisions are so important, because if you're collecting data real time and you're analyzing it real time, you're putting yourself in a better position to make more informed decisions that are going to improve your efficiency. That's going to also reduce your waste and enhance that product quality.

So you've seen other countries out there, like Germany, lead the charge initiatives like the Industry 4.0 and Factories of the Future and we're playing catch up, and that's okay. We're going to catch up and we're going to take the lead, because ECO is working with the early adopters out there who are already experiencing some of the benefits that I've already talked about earlier. So we're connecting, we're helping these leaders experience these benefits and they're finding the increased efficiency and they're lowering their defects and they're seeing customer satisfaction levels higher than they ever have before. So really, at the end of the day, this is your call to action. Ok, modernization and smart manufacturing. They represent something that is extremely transformative for the, for the industry in general, and you need to be in a position to start really leading the charge, because whatever industry in that you find yourself in, like, whatever your competitors are, I guarantee you they're thinking about this and they're taking those steps.

Now here's what at Eco, we're here to help you. We do not want you to think you have to do this alone. We have a very comprehensive guide to smart manufacturing that gives you some actual steps you can take right now. But, more importantly, we have the people. We have the people ready to step in, to listen, to really understand what you're saying, step in to listen, to really understand what you're saying and then take that information back and come back with a customized solution to give you what you need the most. So look again, ecoonlinecom is the way you connect with us. Highly, highly, highly encourage you to get your online account set up. So, if you don't have that online account set up, go, get that set up right now so that you can access all our systems, all the different ways that we can help, we can connect. If you want us to come in and meet with your team, do a tour, have a conversation with you about your goals.

This is really where we put the most emphasis and focus. We're really a hands-on distributor. We want to have that relationship and elevate that relationship to the next level. We also have labs in all the different regions that we service. So I've seen this firsthand for years. If there's a technology that you're interested in and you want to see it firsthand and put your hands on it and play with it and understand, ask the questions. We've built the labs for you to come in and do that directly, so we'll try to put a link to those labs. You can actually schedule time directly for those labs in the show notes here for this episode. So thank you so much for listening.

Again, ecoonlinecom is the website, so go head over there now. You can even download the Smart Manufacturing Guide directly from the website. We'll have a link in the show notes for the guide as well, and then as we move forward through the next several months it'll take us out to the summer we're going to still be unpacking each month ways that you can understand smart manufacturing at a deeper level so that you can make decisions now that are going to impact your operations, your business, your career. It's going to be great, so looking forward to sharing these insights with you and these reflections as we move forward. Again, you can connect with us over at ecoonlinecom. Connect with us on LinkedIn as well. We're very active on LinkedIn. You may want to connect on our YouTube channel. We put lots of information out on our YouTube channel on a regular basis and you know we have lots of ways within the branches and locations themselves for training opportunities, to grow, questions get up, to connect with experts, and all of that is found at ecoonlinecom. So thank you for listening to.

Eco Asks why. You know, share this out with others, for sure, particularly ones those that are working in manufacturing. We just want to get just our message out as much as we can to encourage others. And, again, if you know people who are interested in coming into the electrical industry, I would just encourage you to check out Electrical Equipment Company, again, someone who started as a co-op engineer. Now, several decades later, I can just tell you one thing it's been a blessing for me, my career, my family, just the things that they've done to take care of us, and it really does feel like a family here at Electric Equipment Company. So go check it out.

Ecoonlinecom. Give us a rating and review for the show. That would be wonderful. If you took the time to do that, you can connect with us in all the different places I mentioned. Go check out the show notes. We'll have lots of ways you can connect and find the different ways to get synced up with us there. So have a great day. Thank you so much for listening and just remember, keep asking why. Thank you for listening to. Eeco Asks why this show is supported ad-free by Electrical Equipment Company. Eeco is redefining the expectations of an electrical distributor by placing people and ideas before products. Please subscribe and share with your colleagues and friends. Also leave comments, feedback and any new topics that you would like to hear. To learn more or to share your insights, visit EECOASYcom. That's E-E-C-O-A-S-K-S-W-H-Ycom.