Even though process control and automation suppliers report their supply lines and businesses have mostly returned to pre-pandemic normalcy, they're still facing persistent microprocessor scarcity and delays, dilemmas over reshoring sources of raw materials and basic parts, and diversifying and drawing their supply chains closer together—so they'll hopefully be more effective in weathering future crises.
“We’re almost back to normal, but we still have issues on the power equipment side. For three years during COVID-19, our automation businesses had to deal with chip shortages, which were made worse because many suppliers didn’t diversify their chip sources earlier. The longest lead times were for analog cards that go into PLCs and drives, especially because many chips were going to higher-priority medical, telecommunications and automotive suppliers first,” says Colleen Goldsborough, executive board member at the International Society of Automation and an industry sales manager at United Electric Supply, a Schneider Electric distributor. “Now, our suppliers are mostly caught up, and we’re under the impression that they’re diversifying their component source and ramping up domestic production, and we’re seeing it happen.”
Subdue the overstock swing
While the health of many supply chains has improved, memories of chronic shortages and prohibitive lead times are fresh enough that many suppliers and clients are retaining practices they adopted during and after the pandemic. Ironically, this includes dealing with more recent over-ordering and oversupplies of some products and the costs associated with excess inventories.
Goldsborough reports that Schneider Electric’s distribution center is well-stocked enough now that any industrial products United Electric requires are only about a week away, which is a big improvement over delays during the pandemic. “Lead times over the previous three years were three to nine months, so we and our customers had to seek other sources and methods,” explains Goldsborough. “Projects had to be forecasted further ahead, so orders could get into the pipeline sooner. Customers like system integrators working with engineering firm or general contractors had to wait for products and equipment, so they had to postpone projects or not do them at all. Each project had to be considered on a case-by-case basis, and we all had to get creative. If it was going to take a year to get an eight-slot PLC backplane, we try to see if it could be done with a four-slot PLC backplane.”
Getting (digitally) nimble
To offset unavailable parts in particular areas, Goldsborough adds that suppliers, system integrators and customers learned to lean more heavily on downloadable software and services with shorter or non-existent lead times.
“The last several years have been a good time to get familiar with digitalization,” adds Goldsborough. “Enhancing services let us focus more on solution selling, and adding value beyond just offering products. While in-person training is still preferable for PLCs, variable frequency drives (VFD) and switchgear, we began offering more virtualized training on implementing and troubleshooting them, as well as training on NEC and NFPA requirements using digital drawings of equipment and panel schedules. Some users prefer it, while others want hands-on, but the point is they now have options.”
In addition, United Electric launched its dedicated Energy & Power Management division within its OnPoint Automation team three years ago, which designs and integrates electrical power monitoring/management systems (EPMS). The group proved its value in 2023, when United Electric was bidding on a switchgear package, which it initially appeared to be losing due to long lead-times issues. The package had internal, “smart” components built into the switchgear, so users could push data to other levels and applications.
“The original quote was for a 12-month lead time, but we were able to separate the smart devices from the switchgear, and quote that hardware separately as standard equipment,” explains Goldsborough. “This allowed us to deliver the switchgear hardware in two months, and use United Electric’s OnPoint onsite technical team to add the smart items separately and field-install them. We were able to complete the full package in less than three months. This was much faster than the supplier’s 12-month lead time for adding the smart components, but we can provide that flexibility more quickly because we’re local and have in-house expertise.”
Beyond spurring digitalization, Goldsborough reports that supply chain challenges also demonstrate the need for greater cooperation among process control and automation engineers, managers, operators and other professionals.
“As our technologies quickly evolve and get more complex, they’re also overlapping with other areas that are too widespread for one person to understand. This means operations technology (OT) and information technology (IT) people, who’ve never talked before, must talk to each other, and get artificial intelligence (AI) involved where it can be useful,” says Goldsborough. “This is where ISA’s articles, books, training, certification programs and professional networking can make sure everyone is on the same page with its applicable standards and best practices, including handling supply chain issues and what to do when they have to wait.”
