Hanoch Magid, CEO
The manufacturing sector today accounts for the lion’s share of global GDP, manpower, and resources, vastly outranking the high-tech industry. However, the same cannot be said about the R&D investments in the manufacturing sector. For several decades, an overwhelming majority of R&D resources have gone to high-tech companies. Consequently, the high-tech industry is way ahead in reaping the operational, cost, and other benefits of adopting new technologies, and the manufacturing sector is lagging far behind.
In most manufacturing industries, large corporate companies typically operate with low-profit margins and high manufacturing costs, where raw materials account for most of it. This keeps them highly vulnerable to fluctuations in their products’ selling prices. To draw a conclusion from this predicament, these companies are now realizing that they have much to gain from smart technology transformations that will significantly impact their performance and value. Nevertheless, for the same reasons, technology transformations are challenging, if not considered—by many as—impossible. This is exactly where Smartech comes in, with both the capabilities and the offering to powerfully address those specific challenges.
Smartech has developed a unique, multi- and cross-disciplinary research arm, with an advanced methodology and a meticulously selected team that enables the systematic provision of smart, game-changing technologies to the manufacturing sector. Smartech defines these as technologies that can create a transformational change in the way an industry works and significantly affect cost and profit margins.
With this robust capability, Smartech initially focused on the engineered wood vertical—manufacturing of OSB, MDF, Particle Board, and other products.
Like other manufacturing industries and verticals, engineered wood manufacturing works with low-profit margins; raw materials, primarily wood, resin, and wax, form the majority of manufacturing costs. In targeting the wax consumption needs for one leading manufacturer, Smartech developed its patented SmartWax suspension technology, and replaced the traditional use of molten wax or wax emulsion.
This breakthrough technology enabled more than a 40 percent reduction in wax costs. “Savings of that magnitude were considered impossible until we proved otherwise,” recalls Hanoch Magid, CEO, Smartech. “Yet, we achieved it, all while maintaining or even improving the product’s properties.”
Today, just a few years after the introduction of SmartWax, over 30 percent of OSB companies in North America have acquired the technology. Additionally, several MDF and Particle Board manufacturers in Asia and Europe are now in the process of purchasing or implementing it.
In the time since SmartWax began to transform the use and handling of wax throughout the engineered wood industry, Smartech has more than tripled its investment in new technologies. It is now working on transforming other significant raw materials and processes in engineered wood while also exploring smart, game-changing opportunities in other manufacturing industries.
“Many of the companies exposed to our SmartWax technology told us we’ve shown that what was once considered impossible is actually possible, and so they’re willing to address other impossible challenges with us,” says Magid. “That opened the door to many new opportunities, and we are now offering them an almost risk-free route to additional smart, game-changing technologies.”
With Smartech’s current offering, manufacturers just need to cooperate with Smartech on defining their significant technology challenges and commit to adopting effective new smart, game-changing technologies. Smartech takes on the complete risk of financing and providing the transformational technologies. As Amnon Shoshani, Smartech’s president and chairman, points out: “This unique offer requires significant cooperation and trust between parties, as we are very selective in choosing our customers.”
“Smart technology is going to change the way manufacturing works,” adds Magid. “We intend to be a leading force in that change.”