Technologies Added supports scale-ups in manufacturing their first products with a shared factory.
In Emmen, the innovative company Technologies Added manufactures unique products for various startups in a shared factory. “Producing the first prototypes or products is an important but challenging step for companies. Young, growing companies often lack the resources, time, and expertise to set up their own production line,” says Johan Bakker, director of Technologies Added. His company offers a solution to this: Technologies Added manufactures and distributes products for scale-ups. For example, the company produces PVT solar panels for Triple Solar and smart outdoor lighting for Sustainder.
Flexibility
Most of Technologies Added’s clients have their own production lines in their factories. “We can easily swap machines and employees between the different production lines. This allows us to work efficiently, both in terms of materials and costs. When companies have their own production line, they have to continue paying salaries and other expenses even when production is temporarily halted. When companies hire us, that’s not the case. We can assign our employees to a different line.”
“This way, we take the pressure off scale-ups while still being able to produce at competitive market prices. That makes a big difference for our customers, and we spread the risk for ourselves by working on different products for different customers at the same time. It’s also great for our employees, because it means they aren’t dependent on seasonal work.”
The concept is appealing to scale-ups that are starting production for the first time or companies that are experimenting with new components. As a company continues to grow, it can eventually build its own factory.
Strong ecosystem
By facilitating this intermediate step, Technologies Added holds an important role in the Northern Netherlands ecosystem. Philips decided to close an important factory in the region in 2016. At the time, that was a major blow to the region. A total of 240 jobs disappeared. Technologies Added was founded that year to roll out a new concept in the existing factory. The company now works with four scale-ups. "But there is room for more," Bakker says.
NOM has invested in Technologies Added and in a number of its clients. In addition, NOM is helping to build an ecosystem in the region. André Harmens, ecosystem developer for high-tech systems and materials at NOM: “We are at the heart of the triple helix (collaboration between government, the business community, and educational institutions—ed.) and connect people and companies. Strong roots in the region can make all the difference.”
Digitization and automation
Technologies Added’s approach is relatively new, and the factory is also at the forefront of automation and digitization. “Based on a customer order, it automatically generates instructions for the production and assembly of the product. In addition, we can automatically generate purchase orders for the raw materials we need for production. Warehouse operations—such as shipping items to the end customer—are also automated as much as possible.”
Addressing Labor Shortages
Why do we need to focus more and more on smart factories? Harmens cites two key trends. “The number of students enrolling in programs related to the manufacturing industry has been steadily declining in recent years. On top of that, the number of people reaching retirement age is actually rising. Over the next five years, approximately 30% of skilled workers will leave their current employers because they are retiring. The combination of these two developments is making the situation truly dire.”
According to him, part of the solution lies in smarter production and the resulting increase in productivity. “This can enable you to do the same amount of work with fewer people, or to get more work done with the same number of people.” To achieve this, automation and digitization are crucial. “Robots can take over some tasks from people, and data-driven work can then ensure better information flow, which ultimately leads to greater productivity.”
Strong competitive position
That productivity also helps bring manufacturing facilities back to Europe, which many companies are currently working on. A few decades ago, many companies moved their manufacturing facilities to countries like China. As a result, our dependence on other countries has grown significantly. Now, many European companies are trying to reduce that dependence by bringing back (part of) their production. The reasons for this vary, as Harmens explains. “There are political reasons, but global developments, such as wars, also play an important role.” In addition, there are logistical reasons, for example. Some time ago, a ship became stranded in the Suez Canal. Due to the blockage of this important route, many ships had to take a detour, causing significant delays and, consequently, high costs.”
Bakker is convinced that smart manufacturing—such as at the Technologies Added factory—can ensure that we in the Netherlands can also produce cost-effectively. That way, we can compete with companies abroad. “You have to look at the big picture—not just the cost of the product, but also transportation, import inspections, and all the other factors involved.” He also sees other advantages to producing closer to home. “It allows you to respond more quickly to changes in the market.”
Leading the way
Manufacturing companies are facing major changes, and this includes new concepts such as Technologies Added. Bakker: “It’s a new way of thinking. It doesn’t all happen on its own, but step by step, we’re getting there.” To gain knowledge and contribute to innovation, the company is, for example, part of the Smart Industry branch of the NXT GEN High-Tech Growth Fund Program.
The CEO of Technologies Added plans to expand his customer base in the near future. He aims to replicate the shared factory concept in Emmen abroad as well. “Because everything is digitized, it’s relatively easy to build a facility abroad as well. We can then support our customers in their international growth.”