Interview with Mr. Gilberto Loureiro, CEO & Co-founder at Smartex During ITM 2024
We have a team of 140 engineers, primarily software engineers in SMARTEX. Every year, we launch numerous innovations, updating our systems with new features every few weeks. This year, at ITM, we are excited to announce and showcase our outdoor road grading system.
To explain, when an inspection worker examines fabrics on an inspection machine, they must count defects and assign scores based on defect types. This manual process is prone to errors and was actually my first job as a teenager in a textile factory. Now, we are automating it with AI and machine learning. Our system can detect holes, yarn knots, and differentiate them from regular or flawed yarn. This specificity allows us to challenge human inspection and aim for a fully automated factory in the future.
The Future of AI and Digitalization in the Textile Industry
We don’t need to be visionaries to foresee this; just look at industries like automotive, electronics, and computers. They already have lights-on, lights-off factories with robots, cameras, QR codes, and tracking systems. The textile industry will likely follow, albeit a few decades behind due to the complexity and variability of textile products. AI and machine learning will be crucial in overcoming these challenges, similar to the gradual adoption seen with self-driving cars. In textiles, the most disruptive area will be human inspection. My own experience in textile inspection fuels my drive to eliminate this process. Moreover, digitizing traceability, which is still largely done with pen and paper, is essential for a fully autonomous supply chain. We are starting to see signs of this in the US and Europe, and I believe it will soon be worldwide, with SMARTEX at the forefront.
Why is the Textile Industry Slow to Fully Automate?
This is a great question and one that reflects the broader trends seen in industrial and agricultural revolutions. The challenge lies in the cost differential between labor and technology. In textiles, labor is so cheap that the technology needs to be extremely affordable or significantly better to justify the switch. At SMARTEX, we’re focusing on yarn and raw material savings rather than labor savings. Yarn accounts for 90% of textile fabric costs, so reducing waste even by 1-2% can have a tremendous impact. Our technologies, like cameras, loop systems, and online controls, aim to save yarn, time, and resources. While labor cost savings are not our primary focus, they will become increasingly relevant as labor shortages and the demand for skilled workers grow.
Real Solutions for Sustainability and Traceability
There is a lot of superficial talk around traceability and sustainability in the industry. Many brands and factories claim these values without significant action. The waste due to defects is substantial, especially during dyeing and finishing processes. Early detection and prevention of defects can avoid significant waste in subsequent stages. SMARTEX systems address this by stopping machines in real-time to prevent defects and using QR codes to track every fabric roll. This creates a digital product passport, ensuring transparency and reducing waste. Our online platform allows us to verify fabric origins and quality, preventing disputes and ensuring accountability.
The Turkish, Middle Eastern, and African Textile Markets
Turkey is our largest market, with numerous clients and hundreds of installed devices across the country. Despite challenges like interest rates, currency fluctuations, and last year’s earthquake, Turkish clients continue to invest in technology. They are resilient and forward-thinking, which aligns well with our company culture. We also have an office in Istanbul, acquired last year, and our team there is incredibly hardworking.
In the Middle East and Africa, we are gradually expanding. We have some clients in countries like Pakistan and are exploring new markets. These emerging markets often have Turkish investors, creating a similar business environment. We are actively seeking partners and distributors to enter the African market.
Importance of Textile Exhibitions and Innovation
Exhibitions are crucial for us, especially as a young company needing to educate the market. This is our second time at ITM, and it’s remarkable to see the industry’s growing interest in camera and inspection systems. Exhibitions allow us to showcase our innovations and meet clients face-to-face, which is vital in this traditionally conservative industry. While trade shows are costly and demanding, they are essential for maintaining our pace of innovation and communicating our advancements to clients.
In summary, the textile industry is on the brink of significant digital transformation, and SMARTEX is dedicated to leading this change through continuous innovation in sustainability, traceability, and automation.
