Digital Transformation
In today’s fast-moving industrial landscape, efficiency and data-driven decision-making are key to maintaining a competitive edge. At CHG Electrical, we specialise in integrating advanced industrial automation and digital solutions that enhance asset utilisation, operational uptime, and sustainability. Our recent collaboration with Barrett Steel, the UK’s largest independent steel stockholder, exemplifies how digital transformation can revolutionise manufacturing and logistics.
The Challenge: Unlocking Operational Efficiency at Scale
With 28 sites across the UK and a turnover of £500 million per year, Barrett Steel is a major player in the steel stockholding industry. However, its operations team recognised inefficiencies in asset availability, machine uptime, and maintenance management.
Paul Burke, Head of Engineering at Barrett Steel, identified a critical gap in operational insight. Key data points such as power usage, machine run-time, downtime, repairs, and logistics were either not collected or not utilised effectively. Without comprehensive visibility across all sites, decision-making relied on incomplete information, limiting productivity and increasing costs.
The Solution: A Smart, Scalable Industrial IoT System
To tackle these challenges, Barrett Steel turned to CHG Electrical as a trusted system integrator. Our expertise in industrial automation, combined with our strategic partnership with Rockwell Automation, positioned us perfectly to deploy an intelligent data-driven solution.
Our approach began with a pilot project on a single machine at one site. This initial step involved installing Rockwell Automation PLCs and software to gather machine-level data. As the trial demonstrated substantial opportunities for improvement, we scaled the solution to 52 machines across 10 sites. Recognising the need for a more comprehensive and scalable system, we implemented a full digital transformation strategy featuring:
ThingWorx® SaaS-based Smart Connected Products (SCP) platform from PTC for real-time data collection and analysis
Fiix Computerised Maintenance Management System (CMMS) from Rockwell Automation for predictive and proactive asset maintenance
These technologies enabled Barrett Steel to centralise data collection, automate reporting, and gain actionable insights across multiple sites. The integration of IoT and smart automation transformed previously siloed data into a unified system, unlocking powerful optimisation opportunities.
The Results: Measurable Gains in Efficiency, Cost Savings, and Sustainability
The impact of CHG Electrical’s digital transformation project was profound. The pilot phase alone revealed that even a 1% improvement in machine utilisation could generate an additional £250,000 in revenue. With a conservative improvement estimate of 5%, this equated to an additional £1 million in annual revenue. Extrapolating these insights across Barrett Steel’s full operations, the financial and operational benefits were game-changing.
Key improvements included:
Proactive Maintenance: 90% of crane maintenance is now proactive, significantly reducing unplanned downtime.
Enhanced Logistics: Real-time tracking of vehicle loads ensures optimal weight distribution and route efficiency, lowering fuel consumption and transport costs.
Energy Optimisation: By monitoring electrical usage based on shift patterns, Barrett Steel identified that 40% of electricity consumption occurred during non-operational hours. Immediate corrective measures, such as implementing lux and presence sensors and optimising solar generation infrastructure, significantly reduced energy waste and CO2 emissions.
Asset Utilisation: Unused machine capacity worth £300,000 was identified across multiple sites, eliminating the need for unnecessary capital expenditure on new equipment.
Empowering People Through Data-Driven Decision Making
One of the most significant transformations occurred within Barrett Steel’s workforce. Initially, there was some resistance from machine operators who feared they were being monitored. However, once they saw how data insights improved efficiency without increasing their workload, attitudes shifted. Productivity on monitored production lines increased significantly, demonstrating the direct correlation between data transparency and workforce engagement.
Paul Burke emphasised the importance of acting on collected data: “You can collect data and monitor it, but if you don’t act on it, then motivation to use it disappears. The key is to use the insights effectively to drive tangible operational improvements.”
The Future: Scaling Digital Transformation for Continued Growth
CHG Electrical’s work with Barrett Steel is an ongoing journey. The initial focus has been on utilisation and availability, but future steps include optimising Overall Equipment Effectiveness (OEE) by integrating performance and quality metrics. The ultimate goal is to create a fully autonomous and self-optimising operational model that continuously drives efficiency, sustainability, and profitability.
As Barrett Steel’s digital transformation progresses, CHG Electrical remains committed to leveraging the latest IIoT, automation, and smart maintenance technologies to ensure sustained growth and operational resilience.
Conclusion: Can You Afford Not to Digitise?
Paul Burke concluded his presentation to Barrett Steel’s management team with a powerful statement: “It’s up to you whether we can afford it or not, but I don’t think we can afford NOT to do it.”
This case study highlights the undeniable benefits of digital transformation in the manufacturing and industrial sectors. By leveraging CHG Electrical’s expertise, Barrett Steel has positioned itself at the forefront of data-driven operational excellence. If your business is facing similar challenges, contact CHG Electrical today to explore how we can help optimise your operations through cutting-edge industrial automation and smart maintenance solutions.
