“There will be a second factory boom”

 "Corona pandemic, delivery bottlenecks and climate crisis: change cannot work without state-of-the-art factories. Siemens is at the forefront.

The orders are through the roof and the books are full to the brim. Customers are queuing because the world wants more hardware and more software, more robots, more machines, factories and more modern businesses. Cedrik Neike says that there is no other way to get the pressing problems of the time under control. The Siemens CEO speaks of climate change and the corona pandemic, heat waves in India, and broken supply and supply chains. Dramatic times with far-reaching upheavals – and a glimmer of hope on the horizon: technology. Neike is certain: "There will be a second factory boom, but it will be different."

The corona pandemic finally showed companies all over the world the limits of globalization and thus the limits of unlimited availability of materials and raw materials. At the same time, it is becoming increasingly difficult for Western nations to find personnel for the physically demanding and often monotonous work, which will further accelerate automation in the factory halls - also to control costs.

"It can't go on like this"

Neike compares the current change with a ketchup bottle, the bottom of which you tap in vain to get the red sauce out. "It's a bit the same now: Little has happened in ten years, and now everyone wants to catch up," he says. All signs point to a golden age of automation. Neike should know, since he is responsible for the important industrial business of the long-established Munich group Siemens, which had sales of more than 16 billion euros in the last fiscal year alone. What once began with robots in the factories of aircraft and car manufacturers is now taking place in almost every other industry: from pharmaceuticals to agriculture.

"Things can't go on as before," he says at some point in the middle of a one-hour video interview with the F.A.Z. The planet is slowly dying. New thinking is needed. The old consumer and throwaway society is over. Manufacturing is increasingly taking place closer to the customer. 

"If components are sent around the world three times, then that doesn't save resources," he says. 

Recycling, savings and sustainability are the order of the day. Just like in the factory of the Swedish battery start-up and Siemens partner Northvolt. There, in addition to the production plant, a recycling line had also been erected - for the reuse of materials that were actually worn out. In the past they would probably have been disposed of immediately. Today they are broken down into their individual components, processed and reused in production. This is a circular economy.

Neike speaks of circular industries. They needed new processes and procedures, machines and technologies. The times when the most modern factories still had chimneys are long gone. Today we work with "green electricity", the factory buildings are sparkling clean, full of machines with no people around.

He was just in Milan, says Neike. There he saw a very special factory. In the past they would have been called greenhouses, but today we speak of vertical farming, i.e. umpteen beds that are arranged one above the other instead of horizontally and meet the most modern ecological and industrial criteria. Heads of lettuce don't just grow there, they are actually produced. Such farms use up to 90 percent less water and 70 percent less fertilizer per hectare compared to conventional fields, but they use a lot of computer technology. The result is amazing, one of the heads of lettuce has just as many vitamins as a kiwi. Breeding and technology make it possible.

Siemens supplies the tools for this. Programs and machines, systems and processes, computer-aided design and processing, CAD and CAM. They equip thousands of factories around the world with it every year. Halls with machines that actually serve themselves. As if by magic, they can control and regulate, change and adjust themselves. Neike is already letting machines talk to machines in what is known as the Internet of Things. Siemens developed its own language for this, made it a norm and a standard, and released it globally. In the field of machine control and automation, Siemens is one of the leading groups in the world.

In this way, engineers and programmers can de facto mirror the real world on their calculators and computers, give it a digital image, create a perfect copy in bits and bytes. In this way, a digital twin can be placed next to every thing. It is then brought to life with a few mouse clicks, state-of-the-art machines and networked factories. 

"There are around 190,000 patent applications in Europe a year,” says Neike. "We're among the top 5 with Siemens." 

The decisive task now is to connect everything with everything, a kind of metaverse for the industry. For what reason? To bridge the gap between the virtual and real worlds, deliver custom work at industry prices and serve customers perfectly.

"We have this new factory in Nanjing, China," says Neike. One of the most modern engine factories in the world. It was first designed as a digital twin, then developed entirely in the Metaverse and finally built on site. 

"And we have the other factory in Amberg," he says. A building from the 1970s, constantly updated and most recently made into the counterpart of the printed circuit board factory in Chengdu, China. Twin factories producing printed circuit boards. Separated from each other by thousands of kilometers, they actually work in parallel. 75 percent of the production is automated, there are practically no errors in production."