Israel Gonzalez, Regional Director, Hypertherm Asia-Pacific
Hypertherm offers a wide range of metal cutting solutions. Can you provide us with some insights on the cutting technology and what Hypertherm has to offer in meeting today’s cutting requirements?
At Hypertherm, we don’t just focus on the cutting process. We seek to understand the challenges that our customers face, and to understand the upstream and downstream processes as a whole, so that we are able to develop and offer turn-key solutions to the end-users.
For example, by investing in advanced CAD/CAM software used for offline part programming (which is an upstream activity), the end user may be able to increase cutting machine utilization by eliminating the downtime that comes from having to wait for programming on the CNC. That same investment may also increase material utilization, leading to less wastage, which is a huge cost in most cutting operations.
Looking downstream, manufacturers could be spending unnecessary time and money on mechanical tools and labor to prepare parts for welding or painting. Investing in cut quality improvements may reduce the need for secondary operations, such as grinding or beveling, allowing the end-user to increase throughput of finished parts, not just the number of parts coming off the cutting table or robot.
Hypertherm’s new SureCut technology is an example of an integrated system that consists of various delivery mechanisms, such as our cutting systems, CNCs, and online/offline CAM software. The technology is able to automatically optimize cutting process parameters, which simplifies cutting and reduces operator intervention.
Hypertherm has introduced many new technologies and upgrades on existing ones. Tell us more about your R&D activities and what percent of your revenue goes to R&D activities?
R&D has always been an area that Hypertherm places huge emphasis on. In 1985, we introduced our first air plasma unit and our handheld line was born. To date, we have close to 1,600 associates worldwide, of which more than 10% are involved in R&D. Compared to other manufacturers, Hypertherm dedicates more resources to industrial cutting research, development, and testing. After almost 50 years of experience in the business, we currently have more than 120 patents.
For instance, we are shipping a new CNC platform called EDGE® Connect. This next generation CNC contains a number of enhancements for operator ease of use, reliability, and customizable performance.
Each year, we also introduce patented new technologies to improve the performance of consumables and extend their usage life. Our consumable parts are designed and optimized for use with different torches, power supply, and applications.
What are the latest developments in metal cutting technologies from Hypertherm?
Hypertherm recently underwent a rebrand and a new company vision was born out of the exercise. Our new tagline “Shaping Possibility” conveys our role in providing products, services, and expertise to help customers achieve their vision, and it expresses all that is possible with Hypertherm products in the hands of hard-working manufacturers and fabricators. We endeavor to be more than just a manufacturer and supplier of cutting equipment. The focus of our customers is not on cutting; they produce finished goods. And our main mission is to provide customers with the best technologies to fulfil their business goals. Problems associated with the cutting process should not be something for them to worry about. Rather, we want to help our customers concentrate their efforts on what they do best – manufacturing and delivering finished goods.
Instead of focusing on the development of new technologies for cutting, we are now more focused on enhancement – helping our customers to cut better, faster, and more efficiently – but with solutions that are cost-effective at the same time.
For example, our latest plasma system, the Powermax45XP, offers enhanced gouging and marking capabilities, with increased cut capacity and a faster cut speed. In the near future, we have plans to redefine the mechanized cutting technology. All these technology developments tie in closely with our rebrand and new tagline.
How do you see the response for such solutions in the Asian market and especially in India?
At the moment, the overall Asian market is depressed. We have observed a slowdown in the shipyard, oil and gas, mining, and manufacturing industries across Asia. As a result, instead of looking at increasing capacity, customers will come to expect efficiency, cost-savings, and quality when it comes to cutting. In this sense, Hypertherm’s enhanced solutions will be highly relevant to the market demands, and we anticipate positive response from the market.
Do you see any difference in demand pattern in India, in comparison to more developed countries?
India is currently undergoing a transformation, where manufacturers are moving away from manual and labor-intensive manufacturing to rely more on automation. With the new global wave of Industry 4.0, we foresee that more and more emerging markets (e.g. India) will jump onto this bandwagon. I personally view India as an attractive market for greater adoption of automated, robotic, CAD/CAM applications, and advanced manufacturing.
How is the business outlook in India?
Despite the bearish market outlook, growth of the Indian market looks promising. Infrastructure developments, such as new railways, roads, and energy plants, have boosted the demand for metal cutting. The introduction of new GST rules will be a game changing reform for the Indian economy that will ease business operations in India. The ‘Make in India’ campaign launched by the government will also contribute to the growth of the manufacturing sector, and we are looking forward to the business opportunities that will come along with it.
What are the future trends in the metal cutting industry?
For one, evolving IoT technology will lead to greater process optimization and the development of more preventive solutions. As the cutting process becomes more sophisticated, businesses will be able to monitor and track parameters like machine performance, process quality, operating costs, predictive maintenance, and consumable use data. Along with these data comes the potential to optimize the cutting process and reduce wastage, giving rise to a more proactive and responsive cutting system.
Emphasis on safety during cutting is also a trend that is expected to continue. For instance, one of the ways that we have improved product safety is by using less energy in the cutting process, and we have managed to do so without compromising on the cut quality.
Trends don’t exist solely in cutting but across the manufacturing chain on a whole. One such area is in the development of remote help capabilities, which allow the OEM and cutting expert to be virtually ‘onsite’ with the end user in his factory within minutes – via the Internet. This can potentially help equipment manufacturers enhance their service standards.
I also foresee more integration of green initiatives within businesses. For instance, the introduction of highly recyclable systems that allows products to be reused, recycled, or properly reclaimed at the end of their lifespan. Companies may also begin to be more concerned about decreasing the carbon impact of the products and logistics network. For instance, Hypertherm has established ambitious environmental impact reduction strategies for waste, energy, and carbon emissions, to be achieved by 2020. These strategies are developed to help guide our decision-making processes, as we strike a balance between meeting current needs, and building long-term resiliency and success in an increasingly resource-constrained world.
What are the future plans for Hypertherm?
Hypertherm will continue to put in substantial R&D investment for innovation and to further develop existing technologies, all with the end goal of developing solutions that are more efficient and cost-effective. We plan to keep launching new products and technologies, and to come up with more integrated solutions in plasma cutting.
We also plan to increase efforts in public education, both in plasma cutting technology and anti-counterfeiting. A large part of what we provide lies in education, which allows our customers to keep abreast of developing technologies and to improve on what they are currently doing. Through education, end-users can gain a better understanding of the plasma advantage. Our goal is to increase the awareness of plasma amongst end-users so that they can make well-informed decisions on the technology that best suit their needs.
On the front of counterfeit consumables, Hypertherm will continue our efforts to educate end users and minimize the use of these counterfeit products. In recent years, we have noticed an increase in the proliferation of counterfeit goods in the market. Our key concern is that customers are purchasing counterfeits unknowingly. As these goods lack the proprietary technologies developed by Hypertherm, they will not provide the For expected life and performance of our cutting systems, which in turn affects the Hypertherm brand name. To address this concern, we have put in place various initiatives to educate our sales teams, channel partners, and end-users on how to detect counterfeit products and their producers. To date, we have also successfully pursued legal action against counterfeiters, and it is encouraging to know that our efforts are recognized by the legal system. We will continue our efforts to protect the market from inferior imitation products and to eliminate fake goods.
We also plan to strengthen our existing distribution network and extend our reach, particularly within the developing markets, including India, Myanmar, and Vietnam. among others.
