FHI chairman Willem van Raalte: “IoT requires a different mind set in Building Automation”

Technological innovations such as the Internet of Things (IoT) have an impact on almost every industry. This also applies to the Building Automation sector, part of FHI. Willem van Raalte, chairman of the Federation of Technology Industries, talks about the opportunities and challenges in this relatively conservative industry.

By: Dimitri Reijerman

IoT links basic technologies such as sensors and actuators to internet-controlled processes. IoT plays a leading role in the development of smart buildings, which can in turn form part of smart cities, says Van Raalte: “When you look at the entire IoT event, it is of eminent importance for the building automation industry. It forms the connection between the techniques and building automation as a whole. It is also called industry 4.0, mainly driven by German industry. They promote IoT for industry, but you can already see it in white goods, brown goods, but also in the first buildings.”

Despite the promises of IoT, the FHI chairman sees the arrival of connected embedded systems as a more or less natural development: “It is more of an evolution than a revolution,” says Van Raalte. “Because the revolution took place much earlier: total automation and the rise of smartphones. Eleven years ago we didn't need that thing, when everyone said Steve Jobs was out of his mind with his iPhone. That was only eleven years ago.”

Conservative market

There are now numerous companies investing in IoT development, but implementation within the Building Automation industry is slow. Van Raalte: “If you look at Building Automation in itself, it happens relatively slowly. It is a conservatively operating market. Another issue is split interests. The client is often someone other than the end user, and is also separate from the contractor. It is a stacked chain: you have a contractor, below that a subcontractor and another subcontractor. Ultimately, the electrician or installer is squeezed out, because everyone wants to make a certain margin. This ultimately means that IoT equipment becomes too expensive. As a result, the benefits of smart buildings are no longer seen.”

This attitude requires a completely different approach within the industry, Van Raalte thinks: “That entire mind set has to change. You have to look much more from the end user's perspective. He immediately sees the benefits of using IoT in smart buildings, such as switching lighting on/off. A role of the Building Automation sector lies in changing that mindset.”

He continues: “We could play a role as FHI, through seminars, workshops and theme days. Make sure that the chain comes together and that they talk to each other. You can only solve it with a chain discussion. This provides insight into how you can make a building smarter with an investment of around 10 percent and you can also have an impact on sustainability.”

Importance for asset managers

But asset managers must also participate and see the importance of formulating a joint message, says Van Raalte: “It is also important for them that a building is smart and sustainable. It is a different division and a different way of looking at things.”

Looking more broadly at FHI, where a total of five industries are active, the federation chairman also sees many opportunities for cross-pollination with the other industries: “Building Automation can learn a lot from the other industries, especially industrial electronics. Many IoT products are produced there. The same applies to industrial automation, because these members are often clients. And in the lab world you can, for example, think of large extraction installations in which a lot of air is moved. You can save a lot of energy with IoT when building such a lab.”

All in all, Van Raalte sees many growth opportunities for the young Building Automation industry, although there are also problems with IoT technology: “GA has a golden future ahead of it, it is still in its infancy. We started with lighting, smart refrigerators, Google Nest thermostats and doorbells. What is still underexposed is the security of IoT equipment. How easy it is to break into. FHI has an important role to play there, in raising awareness about cyber security. But there is also a role for all trade associations in the Netherlands. That is in the national interest. We have to get this problem under control.”