Pulp & Paper Strategic & Financial Arguments for May 2018

Strategic & Financial Arguments(TM)

for the pulp and paper industry worldwide

May 2018

Participating as industry experts in pulp and paper financing and M & A deals around the world for over two decades, we continue to see the same mistakes made over and over. This newsletter is designed to help you avoid costly mistakes we have seen others make. We will be giving you one or two points each month to help improve your performance.

Watch for Industry 4.0

By Jim Thompson

Coming at us rapidly is Industry 4.0. Otherwise known as IOT (Internet of Things) for Industry. Also, generically, "big data." Pulp mills seem to be the first adopters of this new technology.

Essentially, this is "SAP" for the process. Whereas software like SAP monitors business functions, in this case it monitors production processes.

I think it will be implemented rapidly, for it allows manufacturers to produce products within a tighter band width and that tighter band width is further down the cost curve than where processes operate now.

Who will benefit? Those with new equipment. Old equipment may not be able to mechanically hold the tolerances to the level that newer equipment can.

Converse to the last twenty years when new process control breathed new life into old process lines, Industry 4.0 may obsolesce old process lines faster.

Good topic for you to ask about in your next Q & A with industry executives. I would be interested in the feedback you receive. Email me at jthompson@taii.com with "Industry 4.0" in the subject line.

****

Advertisement--listen to Pulp and Paper Radio International

If you have a casual question or a major deal, call me on my personal cell phone - 404-822-3412 or email me at jthompson@taii.com. We are here to help.

Sincerely,

Jim Thompson, CEO
Talo Analytic International, Inc.

Quick Link

PaperMoney