Private networks lead to more profit, John Deere’s Wallin says

Agricultural giant John Deere is leveraging 5G connectivity to improve the efficiency of its manufacturing and operations.

Deere in March said it was employing connectivity from SpaceX’s Starlink constellation for its farming business to increase crop yield by 50%. 

The Moline, Ill.-based farm equipment supplier’s manufacturing business, however, calls for a different approach. It is using internally-developed, private, wireless networks to streamline quality control and testing, Jason Wallin, principal architect for infrastructure and operations at John Deere, told Connectivity Business News. 

Industrial networks

Corporate spending on private wireless networks is projected to increase from $1 billion in 2022 to $9 billion in 2028, with the number of private LTE and 5G networks worldwide expected to grow from 4,000 to more than 60,000 in that time, according to a January report by Ibraheem Kasujee, senior analyst at market research firm Analysys Mason.

Large enterprises in industrial sectors, such as manufacturing, will lead market growth, the report notes. 

Private networks allow enterprises to optimize production schedules between machines and systems, which can result in fewer supply chain bottlenecks and reduced downtime, ultimately lowering operations costs, Wallin said without providing specifics. 

These networks can be scaled to accommodate company needs, allowing them to integrate more IoT devices and automated processes and to replace legacy systems that require ethernet cables and Wi-Fi drops, he said. 

“Without these cables tethering machinery to one place, staff and advanced technologies — like robots — can more fluidly move around a facility,” Wallin said. 

4-year process

John Deere (ETR: DCO) began developing its private 5G network in November 2020, when it acquired 5G licenses in five counties in Iowa and Illinois as part of the FCC’s auction for the Citizens Broadband Radio Service’s 3.5 GHz spectrum, Wallin told CBN. 

“Many of Deere’s manufacturing facilities are in rural areas with limited broadband and connectivity infrastructure,” he said. “This presents operational challenges for facilities, slowing communications between machines, which lead to delays in production and reduced efficiency — all of which impact productivity and profitability.” 

John Deere has spent the past four years upgrading its facilities with their own private wireless networks, Wallin said, adding that John Deere has more than 30 production facilities across the U.S., with key factories in: 

• Illinois;

• Georgia;

• Iowa;

• Kansas; 

• Louisiana; 

• Missouri; 

• North Carolina; 

• North Dakota; 

• Tennessee; and 

• Wisconsin. 

John Deere is also rolling out private LTE and 5G networks in Germany, Wallin told CBN, adding that the company has increased its networking staff by 20% to accommodate the connectivity upgrades.  

“By investing in our factories, we are investing in the quality of the machines we build to ensure they meet the needs of our customers now and into the future,” he said.

Editor’s note: This article first appeared in Equipment Finance News’ sister publication Connectivity Business News.