Systems Automation & Management (SAM) was established in 1988 at a time when there were no other systems integrators (SIs) in the process business. SA Instrumentation & Control’s editor caught up with managing director, Claudio Agostinetto to find out more about how this thriving company has prospered over the last 36 years.
Agostinetto founded SAM after spending eight years at Siemens, where he was driven by a passion for technology. He says that he ventured into this new business with little real knowledge of process automation outside of Eskom generation, learning and growing as he went along. The early days were marked by challenges, as established players in the industry were hesitant to work with small newcomers. However, Agostinetto’s determination, and a few crucial breaks from Eskom, helped him to get a foothold, and the company has weathered the challenges. Through perseverance, a commitment to quality and a focus on building long-term relationships, SAM has grown into one of the most successful and respected system integrators in South Africa.
Highly skilled engineers
SAM is a top supplier of innovative automation solutions and data acquisition systems in South Africa, and is a leading system integrator of PLCs, scada, and fieldbus systems. The company’s core business includes industrial automation and control, industrial IT, MIS, MES and BMS. It operates from a head office in Sandton, with a branch in Durban, and an office in Denmark. SAM also has presence in Saldanha and Windhoek. It is ISO9000 accredited, and is an approved systems integrator for, Schneider and Siemens.
Its highly skilled team of engineers and technologists has extensive experience in industrial automation based on the diverse knowledge and skills gained from its huge client base. It continually invests in young talent to sustain its innovation edge. SAM’s workforce comprises around 50 engineers and subcontractors. “We have employed a lot of young engineers, and are growing them into management positions. We have an enthusiastic professional team of experts and complementary levels of experience. Our people have passion − with us you can experience a lot more real engineering than in a big corporate,” says Agostinetto.
A business philosophy cast in stone
He explains that SAM’s business philosophy is based on some fundamental principles, and its clients are full partners in each project.
Quality is non-negotiable. SAM’s success comes partly from its unwavering commitment to quality, particularly as it mainly serves large international companies seeking long-term relationships and trust. SAM exclusively uses products and systems from world-leading manufacturers such as Siemens, Schneider, and Rockwell, avoiding less robust alternatives. This approach ensures high standards and reliability in all projects. As he puts it: “We only have four or five principals and we only use world-leading products. You can’t put in something cheap and nasty.” This dedication to quality has earned SAM a clientele that is 99% blue chip, including the likes of Eskom, Toyota and Anglo.
Long-term relationships with employees, subcontractors, suppliers, and clients are also of the highest priority. Agostinetto emphasises the importance of being a significant client to suppliers as it ensures prompt assistance in urgent situations. “We keep buying from the same reliable suppliers, and in return we have their loyalty. Rather be a significant client when you need something urgently instead of bouncing around saving cents. We don’t chase pennies,” he advises.
Trust is a cornerstone
SAM collaborates with smaller local SIs on projects, transferring its knowledge and experience to help these partners grow. Agostinetto says that trust is a cornerstone of these relationships, and also with major clients. Building and maintaining trust is critical, as it can be quickly lost, but takes years to establish, and it takes honesty to maintain the relationship.
A vast number of projects
Over the last 36 years, SAM has completed a vast number of projects in power, mining and other general industries. It has a large customer base of leading companies in South Africa. Among the long list of its elite clients are Toyota,
Anglo American, ABB, ArcelorMittal, Actom, Amplats, Columbus Stainless, De Beers, Eskom, Mercedes Benz, Metso Minerals, Nampak, Samancor, Sappi, Sasol, Siemens and Tenova. They come from a wide range of industries including automotive, cement, food and beverage, energy measurement and management, mining and minerals, power generation, paper and pulp, process plants, water and wastewater treatment, and pharmaceuticals.
Market focus and diversification
Initially, SAM’s business was heavily reliant on Eskom, but to cover all its bases it has since diversified, with 60% of its business now in mining and 10% with Eskom. Today, target markets are in mining, power generation and automotive, serving clients like Anglo Platinum, De Beers, Toyota and Mercedes. SAM is now also focusing on general industrial segments such as water/wastewater and pharmaceuticals. Agostinetto notes that when SAM is able to improve a process for a client, the client often finds the money to invest in further improvements and value engineered solutions.
Sustainable manufacturing
SAM takes a holistic approach to energy management in buildings to see where the most savings can be achieved. A combination of both active and passive technologies are used. In addition, its eco-friendly product, GeyserWorx is a patented product that optimises geyser performance and integrated with solar panels to reduce energy costs by 30 to 40%.
While some of SAM’s major clients, such as Toyota, are investing in solar energy, Agostinetto notes the challenges in its adoption by local industries. The unpredictable and unreliable nature of solar power, coupled with the high cost of batteries, are significant constraints.
Unique products
He explains how SAM has developed unique products and capabilities that set it apart from other SIs. For example, the company had a historian product, VA Historian, before Historians were even thought of, and the team continues to support Eskom’s databases. The team excels in interfacing with old legacy systems, providing cost-effective upgrades through value engineering that extend the life of existing plants. “Companies need to upgrade their plants to extend their lifespan, without making significant investments. Here we have done some very innovative projects, developing interface cards and software that nobody else can replicate,” he adds.
Innovative automation solutions
SAM continues to secure new orders consistently, even in a difficult economic environment. Significant automation projects across Africa and globally include 16 airports across Africa, a smelter in Kazakhstan, a biomass power plant, and various mines in Africa. The Denmark office collaborates with companies like Siemens on specialised projects in countries like Saudi Arabia.
Competitive edge
SAM’s competitive edge lies in its specialised knowledge of legacy equipment in the niche power station market, for example, on plants that were installed over 30 years ago. “Not many operators have this knowledge. Eskom is busy upgrading lots of equipment, so there are also numerous opportunities,” he adds.
SAM also has the edge due to its willingness to undertake higher-risk projects, taking on projects that others avoid, and relying on the wealth of experience and expertise of its engineers, which allows them to deliver on challenging promises. This adventurous spirit has shifted its direction towards more innovative and high-stakes ventures.
“As Agostinetto puts it: “If you want to connect to something and no one else has done it, then talk to us. We have a higher risk profile, and we take on projects we haven’t done and that others don’t want, and we make them work. We can do it because we have the right staff and skills mix.”
Digitalisation
Digitalisation is another area where SAM stays competitive by keeping up to date with new technologies. Young engineers at SAM are encouraged to develop innovative solutions. SAM attends the largest industrial shows in Europe to keep abreast of the latest products and systems, which can then be introduced to its clients.
Technological innovation demands that most products have a limited lifespan of three to five years before new versions emerge, and the industry moves very fast. Agostinetto says the only way to stay current is hands-on involvement, joking that some of the young engineers at SAM have skills he’ll never master. He gives an example of a young engineer excitedly working all weekend on a new electronic board design for lightning detection for a weather detection company.
Challenges
A significant challenge for SAM is staff turnover, both in the company and among its clients. Agostinetto laments that as soon as young engineers gain a bit of knowledge “they may be poached and are gone”. Such engineers are experts in job hopping, but gain little experience.
Retaining skilled engineers is difficult, as many seek managerial positions, which is incorrectly seen as personal growth, or are poached by other industries once they gain some experience. To mitigate such staff turnover SAM believes in promoting a healthy and balanced work environment to ensure that the life-work balance of its staff is maintained.
He also emphasises the need for engineers to gain field experience to fully understand automation processes. He stresses the importance of engineers doing time in the field to truly understand the processes they are automating. Relying only on academic knowledge is not enough. Here a project-integrated solution far outweighs product supply.
Conclusion
SAM thrives by combining in-depth technical expertise, a willingness to innovate and take risks, and a commitment to quality and client relationships. These position it as a leader in system automation, despite industry challenges like skills shortages and rapid technological change. Agostinetto prides himself in his company’s capabilities, and his pragmatic view of the opportunities and challenges in the automation industry paint a picture of a company that is positioned for continued success.
| Tel: | +27 11 803 0570 |
| Fax: | +27 11 803 3486 |
| Email: | [email protected] |
| www: | www.sam.co.za |
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