Industrial inkjet is innovating, it is open for business and while of course, things have changed, in the medium term, we expect to see green shoots of innovation. I recently spoke with Dave Varty at Ricoh who has observed some changes in the way we operate which could provide long-lasting value to society when a new normal is established.

Dave is speaking in the ‘Creativity out of Crisis’ session at the FuturePrint Virtual Summit! Register here.

Innovation Accelerates!

We recently heard of a massive increase in collaboration as companies accelerate production of ventilators by Industrial Companies such as Dyson, Automotive and even F1 Teams and also printing bureaus repurposing flatbed cutters to make masks and meet the sad need for ICU Units to help tackle the virus. The success of this speed of innovation is according to Dave Varty, down to culture, cohesion and a united sense of purpose.

We have also seen breweries producing handgel and gin distilleries making hand sanitisers. This tends to support the notion that there is nothing more motivating than a mutual external threat. 

At Ricoh we have also increased production of 3D Printed visors, (link to story), to help to increase PPE protection to front line healthcare workers in the fight against Coronavirus.

Why in your view has innovation accelerated? 

The rules have changed. Where we are now with the crisis is similar to a war scenario. You’ve got to get things done quickly as lives are at stake, so the rules that used to exist are broken. In so doing you are breaking down procrastination to speed things up. Suddenly there’s a very clear focus and what becomes a necessity takes priority. 

The COVID-19 crisis brings people together literally on a global scale and the fight is against a foreign body. This factor is uniting and incredibly motivating for people to gain the value of a joined purpose, a cohesion, and a mission that is bigger than the individual work of one. 

For example, the Wars such as WWII and the Kuwait campaign was a huge time for innovation. Automotive and Aviation accelerated hugely and this continued into the Cold War as jet propulsion literally took off. Innovation ensued as there was a need, demand and the previous rules of engagement were abandoned as they were too slow and not focused enough. For print technology, it is no secret that much of the innovation that has come out of one of the major centres in Israel is linked to developments for innovation in military technology. Scitex, for example, was drawn literally from this kind of innovation. 

At Ricoh we have also increased production of 3D Printed visors, (link to story), to help to increase PPE protection to front line healthcare workers in the fight against Coronavirus. 

What about industrial Inkjet has the development and integration of this caused problems?

We are still gaining enquires for projects in Finland, UK, Czech Republic, Switzerland and Austria for example and as others relax their lockdowns I expect to see the results of more R&D that has been going on in the background.

We still see innovation in the face of adversity but also through necessity such as the PPE example. However, Ricoh Industrial Print is still very much open for business. Our lab remains open and the commercial team is working from home - we always tended to work a lot like this, obviously, now there is less variation in our days but with the tools and technology, we have available a huge amount can get done. Our lab in Telford remains open for key activities and in particular, in Europe, the industrial print element remains strong for when things return to the new normal.

Very little is evident in the US which highlights the fact that industrial inkjet is far more active in Europe. I think the crisis is revealing both in terms of behaviour and trend. If on the one hand, you get innovation through necessity then you also get the polar opposite. 

Do you think COVID-19 will lead to the Industry 4.0 mega trend accelerating?  

Yes, I think it is accelerating, but it is happening sensitively. Some companies will need digitisation particularly as this enables production regardless of any virus. Some of these projects are easy to solve - and some are more difficult and require a proof of concept. Some of the larger companies are plc’s so they will feel a crunch and capital projects will stop for a year I think. This will be a delay but not a cancellation.

But the value of Industry 4.0 is more obvious. Before it might have been ‘nice to do’ but now the shift is to ‘need to do’! Making product and making it more closely to the customer is growing in its logic. Automation and smart manufacturing will accelerate and become much more prevalent in lates stage imaging in manufacturing, something that is ideally suited for Inkjet in providing last minute combination of graphics and variable data.

There is 'creativity out of crisis', and we will see the continued innovation in weeks and months to come.

I think that re-shoring will again become a big thing. Europe seems to have woken up to sourcing close to manufacturing - not just because it is China, let us not be negative about China but reshoring enables the ability to get products - klick at the mask scenario - just in time manufacturing will become normalised as it is safer, faster and more logical. The offshore model looks increasingly cumbersome because when planes and boats, the logistics chain, are not available, then you cannot get the product. This over-dependency on offshore production will change. Due to the closure of retail, there has been a collapse in textile production in Bangladesh, India and Vietnam for example. They are not able to manufacture as demand has stopped as the shops are not open. Many of these fashion retailers are under threat but some with diversified parents and strong on-line presences focussed on what is needed now – joggers and hoodies rather than evening wear, could actually see growth.

Just as innovation has accelerated, so too has bankruptcy at the other end. But I do not think that is directly solely due to COVID-19, this crisis has accelerated a longer but assured decline. The major high street and traditional retail generally are dying largely because of digital and online retail. People still buy of course, but online, and they will get used to it the longer the crisis continues. There will be some need for live retail going forward but digital has fundamentally changed this and retailers such as Monsoon and Debenhams in the UK are in trouble because the model doesn’t align with consumer behaviour any longer.

The interesting fact is that Covid 19 does not just harm people with underlying health conditions, it also accentuates businesses with equal underlying health conditions. Arcadia as a well documented case but what of Boeing who were already under severe pressure from the grounding of the Max fleet now seeing all new orders drying up as most major fleets are also mothballed.

But the fact is that there are some positive stories. Friends of mine have a bookshop and they have never been so busy. They have been able to deliver. There are positives! In fact to counter the argument of ‘demise of the high street’ the small local shops are resurgent. Suddenly local service has been recognised for its underlying value.

I term this as ‘Industrial Darwinism’. His famous quote that ‘it will not be the strongest or the most intelligent who will survive, but those most adaptable to change’ could never be more true.

Contact Dave Varty here