TALKING

Businesses now have to rethink the way they spend and invest in their existing assets .

And , as technological life cycles get shorter , the traditional capital expenditure ( CapEx ) strategy of making longer-term asset investments is simply no longer viable .

Balancing the benefits of maximizing output and minimizing operating costs , the operational expenditure ( OpEx ) strategy is growing in popularity .

For example , Finkl Steel , a leading American steel manufacturer , saw this firsthand when they approached us to upgrade their electrical cabinet , halving the number of circuit breakers and cutting their carbon waste .

By prioritizing high quality maintenance and repair , an OpEx strategy defers capital costs and limits operational disruptions by ensuring the reliability of equipment , thus increasing a long-term return on existing assets .

Ultimately , this recent shift reflects the industry ’ s desire to move towards a more efficient and sustainable operating model .

To get ahead , here are three vital ways that industry can embrace this transformation :

Scrub away the idea of sunset industries

Terms like “ sunset industries ” and “ rust belt ” to describe traditional manufacturing segments are highly unconstructive . They played a huge role in America ’ s manufacturing history and they still do today . Times have changed , however , and that gives rise to an opportunity for heavy industry to adapt and stay relevant .

The upgrade solution also brought about 24 / 7 predictive health indication and accurate synchronization with network voltage to control the accuracy and precision of the electrical current

passing through the furnace – while reducing the risk of component failure .

Ultimately , technological enhancements that can bring about predictive capabilities enhance reliability and safety standards that serve as a competitive advantage .

Businesses now have to rethink the way they spend and invest in their existing assets .

Practice what you preach when it comes to digital transformation

To do so , making strategic OpEx investments through asset modernization can help such industries evolve in line with new stakeholder demands . By upgrading and retrofitting outdated equipment , companies can extend the lifespan of critical assets by 30 years or more . Simultaneously , such programs can help reduce energy consumption by up to a third , replacing older assets with more energy efficient ones . This not only saves on maintenance and replacement costs but also helps reduce a company ' s carbon footprint in the long term .

Our ‘ Better Decisions ’ report uncovered an ironic trend among American industrial leaders : while 96 % of decision-makers recognize the critical importance of digitalization , only 35 % have successfully scaled their industrial IoT implementations .

This disparity between awareness and action could be characterized as " all talk and no follow-through ."

However , I see this as a significant untapped opportunity for US companies . By embracing

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