In this article , I’ll introduce you to the different types of companies that are involved in industrial automation.
By the end of the article, you will know what
- an end user,
- an original equipment manufacturer,
- a system integrator,
- an EPC, and
- a panel builder
are in the context of industrial automation.
End Users
An End User is a company that uses automated equipment to make products for sale.
A brewery is an example of an end user. A brewery uses automated equipment to brew beer, put the beer in bottles, place the bottles into cases for transportation, and place cases onto pallets for shipping.
End users typically use machines and skids that are made by other companies to manufacture products. The companies that make machines and skids are called Original Equipment Manufacturers, or OEMs.
Original Equipment Manufacturers (OEMs)
Original Equipment Manufacturers, or OEMs, are companies that specialize in building machines and skids that are used in manufacturing by end users.
In the example of a brewery, it is OEMs that make the skids to brew the beer, the filling machine to put the beer into bottles, the case packer that packs the bottles, and the palletizer that palletizes the cases.
Virtually every machine and process skid in a factory or plant is built by an Original Equipment Manufacturer or OEM.
There are two main types of OEM. They are standard machine builders and special-purpose machine builders.
A standard machine builder builds standardized machines and modifies them slightly to meet the needs of an end user. This is possible because many different end users use similar equipment. In this example, the palletizer might be a standard machine that is configured to build pallets with slightly different patterns and slightly different case sizes for different end users.
Special-purpose machine builders build bespoke, one-off machines for end users. Although special-purpose machine builders build bespoke machines, they still tend to specialize in a particular type of machine or industry, such as medical device manufacturing.
Since Original Equipment Manufacturers or OEMs specialize in building specific types of skids and machines, it is common for an end user to buy different machines from different OEMs and link those machines together to build a production line.
Since each machine is from a different OEM, there is a lot of work involved in trying to get machines to communicate with each other and to work together effectively. This work is usually carried out by a system integrator, or SI.
System Integrator (SI)
A System Integrator, or SI, does the work of integrating individual machines into a production line.
Sometimes, System Integrators are involved very early in the development of a production line and help end users to design the line or to develop specifications for the machines that will be used in the line.
Other times, System Integrators join a project when the machines are already on-site and are asked to help optimize the production line by getting the machines to work together. To do this, System Integrators may modify the code of the individual machines, connect machines to a larger network, and build SCADA systems to visualize and control the full production line.
System Integrators tend to specialize in software and not construction, so who does an end user call when they want to build a brand new factory or plant and not just a new production line?
Engineering, Procurement, and Construction (EPC) firms
An Engineering, Procurement, and Construction, or EPC, Firm is a construction company that is responsible for building new factories and plants. EPCs design full factories and plants, build the factory or plant, procure all of the equipment required for manufacturing, commission the equipment, and then hand over the factory or plant to the end user.
EPCs typically deliver a “turnkey” solution to the end user. This means that end users can figuratively turn a key and start producing at the new factory.
An EPC is responsible for delivering the full project but may subcontract out parts of the project, like building machines and integrating machines into production lines.
Panel Builders
Finally, panel builders are specialist companies that build control panels for OEMs, SIs, EPCs, and End Users.
Panel Builders are used because there are specialized skills involved in building panels that OEMs and SIs don’t have and don’t want to develop. By outsourcing the building of control panels to panel builders, OEMs and SIs can focus on their core competencies of building machines or developing value-added software.
Wrap-Up
In this article, I introduced you to the different types of companies that are involved in industrial automation including;
- end users who use automated equipment to produce goods for sale,
- Original Equipment Manufacturers or OEMs who build machines and skids that are used by end users,
- System Integrators or SIs who get machines built by OEMs to work together in a production line,
- Engineering, Procurement, and Construction or EPCs who design and build full plants and factories, and
- panel builders who specialize in building control panels for other companies
In my next few articles, I will explain the type of work that is done by engineers and technicians at these companies.
