MT Magazine March/April 2022

HIGHER AND HIRE: DYNAMIC WORK CULTURES ATTRACT GREAT STAFF by Douglas K. Woods | 01 BUCKLE UP FOR TEXAS: WATCH SEASON 2 OF ‘ROAD TRIPPIN’ WITH STEVE’ ON IMTS+ by Michelle Edmonson | 22 INVESTMENT TRENDS IN EMERGING TECHNOLOGIES: ARE WE THERE YET? by Dayton Horvath | 27

ADVANCING TECHNOLOGY: THE DIGITAL AND THE PHYSICAL THE TRANSITION TO SMARTER AND MORE FLEXIBLE MANUFACTURING IS AN ONGOING EFFORT BY THESE LEADING AUTOMOTIVE SUPPLIERS by Gary S. Vasilash | 13

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MARCH/APRIL 2022 THE TECHNOLOGY ISSUE VOLUME 1 | ISSUE 2

DRIVING MANUFACTURING CHANGE Learn how to keep pace with growing demand, make lifelong connections, and see what opportunities lie on the horizon. Plan on attending The MFG Meeting in Bonita Springs, Florida, this April!

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MARCH/APRIL 2022

A VIEW FROM THE WOODS

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Higher and Hire: Dynamic Work Cultures Attract Great Staff

Your Competitors Want Your Business Part of my understanding of business is that there are plenty of competitors who are interested in putting you out of business. This is not just the case when there are inflection points in an industry that drives massive change – which gave rise to former Intel CEO Andrew Grove’s book “Only the Paranoid Survive” – but simply when competitors do something that makes your offerings to the market less appealing to customers. (Which is not to say that there won’t be Grove’s inflection points, too.) So, the goal is to continually figure out how to do things better – and not just things that your company has been doing but things it hasn’t done and things that can change the value proposition you’re offering. A company that promotes pushing the envelope – a company that makes it fundamental to its culture that change is good because to not change is to stagnate and die – is the kind of company that will attract the best people. But change risks failure. Two Abiding Rules My grandfather, who started fromnothing and built a successful manufacturing business employing 1,200 people, taught me two things about business that I keep front of mind: 1. Success never surprises you if you keep working for it. It doesn’t happen automatically. 2. Failure is going to happen. The trick is to fail fast and recover. Nothing’s wrong with failure. Let’s say you go down the road fast and find you’ve gone the wrong way. So, you turn around, quickly go back to the starting place, and go in a different direction. Going slow and being unwilling to change direction is the problem. If you create a company that promotes driving forward and learning from failure as integral parts of its way of work, you are likely to have a company that is going to attract those people you need. And, importantly, keep them.

The sky is blue, water is wet, and finding people to hire seems impossible. Wh i le r unn ing an organization has never been easy – whether you’re at the top or somewhere other than the proverbial corner office – it would not be an exaggeration to say that the upheavals companies are facing as a result of the pandemic make it all the tougher today. For the past year, companies have grappled with the “Great Resignation,” an exodus of workers deciding to retire, or leave the workforce to take care of their children due to the uncertainty of in-person schooling, or just “find something else,” whatever that may be. But hiring great staff only seems impossible because there are still people out there who are ready, willing, and able to contribute to your organization – or to your competitors’ outfits. These people are going to go somewhere, so you should work to attract them to your company. Difference and Pride One of the things that I have found to be an effective way of getting people to join organizations that I have been a part of – including AMT – is to make sure that there is an understanding that what we are doing is something that is different, special, and valuable – in short, something that people can feel proud to do. Ideally, passion and excitement are part of doing the job, regardless of whether that job takes place on the factory floor or in a customer’s operation, whether it is in the engineering center or a supplier’s shop. While you might think that this is some sort of fanciful notion, let’s face it: People give their best when they know what they are doing is important. The job of a leader is to make sure their team members thoroughly understand that what they are doing is important. No, that’s not an easy assignment. But the return on investment – which is essentially your commitment to change and to communicate the importance of it – can be immense.

Douglas K. Woods President AMT – The Association For Manufacturing Technology

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6 Manufacturing Tech Courses, Including Shop Basics, Additive Manufacturing, and More

18+ White Papers on Topics Such as Transformative Tech, Supply Chains & Digital Manufacturing

1, 000+ Manufacturing Technology Sales Engineer Certificates Have Been Awarded Since 1993

Transformative technologies improve predictive maintenance and performance optimization, revolutionize workforce development and knowledge transfer, and develop new business models. AMT makes sure our members are prepared for these opportunities from the shop floor to the top floor. Take the next step with AMT. Learn more about AMT membership at AMTonline.org

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Masthead

Editorial Team Mary Cecile Neville Director, Content mcneville@AMTonline.org Kristin Bartschi Director, Marketing & Communications kbartschi@AMTonline.org Chris Downs Director, Audience Development cmdowns@AMTonline.org Kathy Webster

Executive Team Douglas K. Woods President dwoods@AMTonline.org Travis Egan Chief Revenue Officer tegan@AMTonline.org Peter Eelman Chief Experience Officer peelman@AMTonline.org Pat McGibbon Chief Knowledge Officer pmcgibbon@AMTonline.org Becky Stahl

Technology Benjamin Moses Director, Technology bmoses@AMTonline.org Intelligence Ian Stringer VP, Data Strategy istringer@AMTonline.org Smartforce Greg Jones VP, Smartforce Development gjones@AMTonline.org Advocacy Amber Thomas VP, Advocacy athomas@AMTonline.org International Ed Christopher VP, Global Services echristopher@AMTonline.org

Managing Editor, Content kwebster@AMTonline.org Dan Hong Writer/Editor dhong@AMTonline.org Gail McGrew Writer gmcgrew@AMTonline.org Ashley Park Lead Designer apark@AMTonline.org Jacob McCloskey Graphic Designer jmccloskey@AMTonline.org

Chief Financial Officer bstahl@AMTonline.org Tim Shinbara

Chief Technology Officer tshinbara@AMTonline.org Membership & Sales Bill Herman Senior Director, Sales & Membership bherman@AMTonline.org

IMTS Peter R. Eelman

Chief Experience Officer peelman@AMTonline.org Michelle Edmonson Senior Director, Events & Content medmonson@AMTonline.org Mark Kennedy Director, Exhibitor Services mkennedy@AMTonline.org

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Join NTMA during our Engage Summit East. With even more informative speakers, key industry roundtables, business development opportunities, and fantastic networking.

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MT MAGAZINE

MARCH/APRIL 2022

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Table of Contents

07 Click

See what’s trending on AMTonline.org

09 Manufacturing Matters

Get details on the latest industry news

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2022 Upcoming Events Important manufacturing technology dates and events to bookmark

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Advancing Technology: The Digital and the Physical by Gary S. Vasilash

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The Big Picture Increased machine value points to a rise in automation

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Digital Manufacturing. Implemented. by Peter Eelman

22 Buckle Up for Texas: Watch Season 2 of ‘Road Trippin’ with Steve’ on IMTS+ by Michelle Edmonson 27 Investment Trends in Emerging Technologies: Are We There Yet? by Dayton Horvath 31 Rolex: Unsung AM Icon Since 2007 by Stephen LaMarca 32 Automation and Employment: A USMTO Recovery Tale by Chris Chidzik

COVER DESIGN Jacob McCloskey | Graphic Designer

MT Magazine (USPS # XXX-XXX), March/April 2022, Issue 2, is published bi-monthly (February, April, June, August, October and December) by AMT – The Association For Manufacturing Technology, 7901 Jones Branch Drive, Suite 900, McLean VA 22102. Application to Mail at Periodicals Postage Prices is Pending at McLean, VA, and additional mailing offices. POSTMASTER: Send address changes to MT Magazine, 7901 Jones Branch Drive, Suite 900, McLean VA 22102. To manage your subscription, contact Chris Downs at cmdowns@AMTOnline.org.

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MARCH/APRIL 2022

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Click MT Magazine is more than just paper pulp and ink. Explore our content on AMTonline.org and engage with discussions on a wide array of topics affecting manufacturing technology now.

How Additive Manufacturing Can Catapult Your Manufacturing Business

Tune In to the Tech Trends Podcast Join AMT’s intelli-gents, Benjamin Moses, director of technology, and Stephen LaMarca, technology analyst, as they geek out over the latest tech! Released every two weeks, each podcast dives into the technologies transforming manufacturing – and the world. Listen as Ben and Steve share the latest trends and news on the cutting edge of manufacturing technology and exchange hot takes, witty banter, and trippy tangents along the way. Listen now at AMTonline.org/resources Listen to additive manufacturing (AM) entrepreneur Greg Morris, CEO, Vertex Manufacturing LLC, interview leaders from three AM companies providing industrial AM solutions. Hear how they are cracking the code for quality inspection; hitting the range for effective production capabilities; and which industries are best served by AM. Panelists include Matt Petros, co-founder, 3DEO; Javier Ramos, founder, Inkbit; and Alexandre Donnadieu-Deray, managing director, North America, 3YOURMIND. Gain more insight on AM by attending AMT’s MFG Meeting, April 27-30, in Bonita Springs, Florida. Learn more at AMTonline.org/how-additive-manufacturing-can-catapult-your manufacturing-business

Drive the Digital Transformation This AMT white paper series addresses the technologies that are essential to digital manufacturing solutions and provides practical insights into implementation. The series approaches digital manufacturing from the viewpoint of the manufacturing shop floor and the technologies utilized when deploying systems for the collection, management, and analysis of manufacturing information. Read the series at AMTonline.org/resources

A New Manufacturing Mandate AMT recently updated its Manufacturing Mandate, which outlines our legislative and policy recommendations to strengthen U.S. manufacturing. AMT uses this document in discussions with government officials and staff to educate them on the crucial role manufacturing technology plays in the country’s national security, economic growth, and job creation. We invite you to use it as well to reach out to your elected officials to introduce yourself, comment on issues impacting your company, or propose they visit your facility. Read the mandate at AMTonline.org/topic/advocacy

MANUFACTURING EXPLORERS ON WATCH EXCLUSIVE CONTENT LIKE

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WATCH MANUFACTURING EXPLORERS ON IMTS+

MARCH/APRIL 2022

MANUFACTURING MATTERS

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Manufacturing Matters Check in for the highlights, headlines, and hijinks that matter to manufacturing. These lean news items keep you updated on the latest developments.

Data-Driven Manufacturing Demands a Proactive Approach to Information Systems Machine learning, artificial intelligence, digital twin, continuous improvement, closed-loop manufacturing, and the metaverse are all ideas and technologies based on a backbone of data. This has created a dependency on information systems internal and external to the organization. Before this reliance, managing these systems was handled as things broke – a reactive approach. Due to the new critical roles assigned to these technologies, manufacturers are shifting to a proactive approach and investing in policies, procedures, hardware, security, and talent. This cultural change drives information infrastructure to be part of an organization’s capital expenses and strategic planning, significantly impacting the role of the manager or director of a firm’s information systems. As a result, their importance in strategic planning will increase and be an invaluable change for the future. TECHNOLOGY

INTELLIGENCE

Automation Technologies’ Faster Growth University studies point to a strong relationship between recessions and sudden bursts of expansion in automation and digital tech investment. Researchers at the Universities of Zurich and British Columbia found that 88% of job losses over the past three recessions occurred in automatable occupations.

Automated manufacturing technologies will expand sooner and faster than the manufacturing technology market as a whole over the next two years. Figures from AMT’s U.S. Manufacturing Technology Orders (USMTO) Report are evidence to suggest this is true. The graphic shows that the growth in advanced automated machinery categories outpaced total metal cutting orders handsomely. By contrast, orders for machinery where advances in the latest automation technologies are not fully deployed have grown at a slower pace. We should expect to see continued acceleration of growth in manufacturing automation where demand for goods continues to improve while labor shortages prevail.

SMARTFORCE

Intel, Dell, and AACC Launch Artificial Intelligence Incubator Network In January at the American Association of Community Colleges (AACC) Workforce Development Institute (WDI) conference, AACC, Intel, and Dell announced the formation of the AACCAI Incubator Network (AIIN), an initiative to build artificial intelligence (AI) incubators that will combine industry expertise with the community college system in the United States. AI has become an increasingly important and relevant field of study across multiple occupational areas and industry sectors, especially in manufacturing. Each AIIN location, whether physical or virtual, will serve as a solution center for its community or talent pool for local labor markets. AACC will build this network quickly, elevating a national dialogue and providing a set of coordinated resources to the wider community college system. A minimum of one college per state will be encouraged to join. For more information about AIIN, visit aacc.nche.edu/aiin.

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MANUFACTURING MATTERS

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INTERNATIONAL

Global Trade Regs – Are You Up to Speed?

Do you import or export? Are you up to speed on regulations and conformity requirements? Apparently, not everyone is. Recently a shipment of manufacturing technology heading into the United States was turned around due to a single piece of wood bracing not having the required ISPM-15 marking – a 15-year-old global regulation! To add insult to injury, the U.S. importer was hit with a six-figure fine. Ouch! There is a lot going on in regulations. The UK, now exited from the EU, recently implemented the UK Conformity Assessed (UKCA) requirement to replace using the EU’s Conformité Européen (CE) standard. Speaking of CE, some directives are under review for changes affecting manufacturing technology. Globally,

the Harmonized System introduced a classification for additive manufacturing (AM) products. AM also has a new ISO standard. Be sure your broker is updated on changing international trade regulations. AMT is always available for updates and advice.

ADVOCACY

Your Customers Should Act Now To Take Full Advantage of Bonus Depreciation In 2017, bonus depreciation for purchases of qualified property, including manufacturing technology, was temporarily increased from 50% to 100% as part of the Tax Cuts and Jobs Act. However, this valuable incentive to make businesses more competitive begins phasing out in 2023. Manufacturers should let their customers know that in order to take advantage of the full deduction, they must act now to make their purchases and place them in service by the end of the year. For readers unfamiliar with bonus depreciation, the provision permits companies to expense a percentage of their manufacturing technology purchases in the year they were purchased and placed in service, rather than depreciating them over time. It is intended as an incentive to help businesses, especially small ones, become more efficient and productive by allowing them to recover the costs of newly-purchased assets more quickly. Making 100% expensing permanent or, at minimum, extending it beyond this year, is a top priority for AMT.

June 7-9, 2022 David L. Lawrence Convention Center Pittsburgh, PA

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MARCH/APRIL 2022

WHAT’S HAPPENING

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2022 Upcoming Events Learn more or register at AMTonline.org/events. Your date book will thank you.

CMTSE Exams SMARTFORCE

MFG 2022 April 27-30 | Bonita Springs, Florida TECHNOLOGY

The Certified Manufacturing Technology Sales Engineer (CMTSE) Program is the only nationally recognized program to measure and celebrate the skills, knowledge, and ability of sales engineers to perform effectively. Since 1993, more than a thousand individuals have taken the CMTSE exam and earned the CMTSE designation.

Manufacturing continues to grow at a rapid rate. Stay ahead of the curve at The MFG Meeting this April. The Manufacturing For Growth (MFG) Meeting is the ultimate gathering of manufacturing technology minds, bringing together a community of solutions and solvers. Learn how to keep pace with growing demand, make lifelong connections, and see what opportunities lie on the horizon.

April 13, 2022 June 15, 2022 October 12, 2022 UPCOMING EXAM DATES

MTForecast 2022 October 12-14 | St. Louis, Missouri INTELLIGENCE

IMTS 2022 September 12-17 | Chicago, Illinois IMTS

MTForecast brings the latest economic news, forecasts, and industry trends straight to you. Industry leaders, executives, and key decision-makers will connect and learn better business strategies through customer industry insights, economic forecasting, and deep dives into market data.

Experience “Digital Manufacturing. Implemented.” at IMTS 2022. Find new equipment, software, and products to move your business forward, connect with industry experts and peers, and attend conference sessions to boost your industry knowledge. Find over 2,000 exhibiting companies at IMTS 2022.

IF A TREE FALLS IN THE FOREST...

Nan0 BYTES

Well, I hope you enjoy yourself. See ya Monday!

Yes, Lamar. While humans require rest, transformative technologies maintain productivity with lights out manufacturing.

NG DI

Nan0, are you still working?

NG DI

NG DI

And you, Lamar! We have many projects ahead of us.

5:00

Written by Dan Hong // Illustrated by Jacob McCloskey

Wrap it up, folks! Day’s over!

Give my best to the kids, Mei!

Have a great weekend, Carol!

ALONE AT LAST!

I do LOVE working from “home”!

CLICK

FINALLY!

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TECHNOLOGY ISSUE

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Advancing Technology: The Digital and the Physical The transition to smarter and more flexible manufacturing is an ongoing effort by these leading automotive suppliers

BY GARY S. VASILASH CONTRIBUTING EDITOR The Digital at Bosch

Although you are undoubtedly familiar with Bosch, here are a couple of things that you don’t know about the company that employs some 395,000 people – 73,000 of whom are in research and development, which underscores the importance of technology to the firm:

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1. Ninety-four percent of Robert Bosch GmbH is owned by Robert Bosch Stiftung GmbH. Why is that interesting? Because the latter is a charitable foundation. 2. The company was established in 1886 by, well, 25-year old Robert Bosch, in Stuttgart, Germany, as the Workshop for Precision Mechanics and Electrical Engineering. While precision mechanics had been around for quite a while, it is worth putting 1886 into context: MIT didn’t establish its electrical engineering curriculum until 1882, and Technische Universität Darmstadt established an electrical engineering school in 1883. Bosch was clearly at the leading edge of technology. Bosch today produces major home appliances, autonomous lawnmowers, e-bike drive systems, fuel injectors and fuel cells, and a wide variety more. What’s more, it makes equipment that it uses in its own factories to produce products, as well as provides it to others. Consider vehicle batteries. Bosch has a plant in Eisenach, Germany, where it makes 48-volt batteries for hybrid vehicles. As Rolf Najork, a member of the Bosch board of management responsible for industrial technology, puts it, “We know batteries like the back of our hand, as well as how they have to be manufactured.” Rather than holding that know-how close, Bosch is actually providing it to customers, such as Webasto, which operates a battery production operation in Schierling, Germany. Bosch provided automated assembly lines for welding and gluing the battery cells, which combine various functions (e.g., cell cleaning with incoming inspection, stacking, and laser welding). Bosch is making extensive use of digital technologies in

its operations, including Industry 4.0 technology that allows equipment to not only be networked but to optimize its capabilities in use. It has developed a manufacturing platform that combines software for production control, monitoring, and logistics planning. That, in turn, is connected to a larger database for purposes of analysis and fault detection. Presently Bosch has more than 120,000 machines connected, as well as 250,000 other devices (e.g., robots and inspection systems). There are 22,000 machine controllers connected with an in-house-developed Industry 4.0 software, Nexeed (which is also offered to other companies, such as BMW). What is it finding from its deployment of Industry 4.0? • Productivity increase of up to 25% While the company has some 250 plants, it selected one, the Feuerbach plant, as its Industry 4.0 lead operation. Notable about the plant is that it was actually established in 1909 by Robert Bosch, which makes it Bosch’s oldest plant. The facility, which is now a 1,174,342.63-square-foot operation, produces high-pressure pumps and components for automotive exhaust gas treatment. At the Feuerbach plant, there are some 550 machines connected. But they are taking connectivity to the next step, as it is also the Bosch lead operation for the deployment of 5G. One of the places where 5G is being used to good effect in the factory is in material handling operations, where they have deployed the “Active Shuttle,” an autonomous carrier that is capable of avoiding people, inventory, equipment, and other vehicles in the factory as well as traveling to the spot on the • Machine availability increase of up to 15% • Maintenance cost reduction of up to 25%

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production line where it needs to be to offload its supplies and then traveling back to where it can pick up more goods. This is not a Germany-only deployment. At the Bosch facility in Charleston, South Carolina, for example, where there are some 1,600 associates specializing in advanced automotive products for the Bosch Mobility Solutions division, such as fuel injectors and electronic stability program modules for automotive braking systems, they are using artificial intelligence to prevent and detect any problems that could occur in manufacturing. While [Deaville] thinks there will be growth in the production of end parts in the auto industry, he believes that lower-volume variants is where additive has the best potential. As Kai Woerner, the technical manager at the Bosch Charleston plant, puts it, “I4.0 is a key element of our manufacturing strategy. It supports not only our efforts to continuously improve our manufacturing and logistics processes but also to increase efficiency and reliability of all other plant functions.” The Physical at Magna Even among automotive suppliers, Magna is a special company,

given that it has not only an extensive physical global footprint – 347 manufacturing operations; 90 product development, engineering, and sales centers in 28 countries; over 154,000 employees – but produces a diverse range of products, from lighting systems to active aerodynamic devices to seats to electrified powertrains. Who makes the hot-stamped steel inner and outer door rings used for the Acura RDX? Magna. The aluminum battery enclosures for the Ford F-150 Lightning? Magna. What’s more, Magna has produced more than 3.7 million complete vehicles – such as the Mercedes G-Class, the Jaguar I-Pace, and the Toyota Supra. These and more have been manufactured at the Magna Steyr plant in Graz, Austria. The Fisker Ocean battery-electric SUV will be going into production at the Magna complex in Austria later this year. The point is: If you want to talk to a company that is making everything from optics to mechatronics, from castings to moldings, a company that can make truck frames and electric vehicle powertrains, thenMagna is going to be at the top of the list. One of Everything Given the wide range of production activities – and the realization that Magna just doesn’t make things to order but actually develops an extensive portfolio of products that are deployed by automotive OEMs – it isn’t entirely surprising to hear Todd Deaville, director, engineering and R&D, Magna, say “I think we, somewhere, have something representative of every additive process – in the big process categories, for sure.” Deaville adds, “Magna is very decentralized. We use this equipment and processes wherever it makes sense. So I’ll

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walk into a division somewhere, and there will be a half-dozen additive machines running that I didn’t even know about.” Magna is no stranger to additive manufacturing technologies. Indeed, Deaville says that some 20 years ago, the company built a system that was used for in-house tool repair. What’s more, he adds, “I think we had the first EOS machine in North America, 20-odd years ago.” Three Things One could make the case that there are three areas where additive technologies are used: 1. Prototyping (the original application, which gave rise to the term “rapid prototyping”) 2. Tooling development 3. Serial production According to Deaville, at Magna, prototyping is where the use of systems began. “It is still a huge use case,” he says. “We have lots of machines doing engineering models and concept development all the time.” He believes this is an area where the technology will always play a role. Tooling is something that they use additive for, and there is a variety of processes being used to produce components. On this subject, Deaville notes, “It is probably a small percentage of our use of additive.” No, it isn’t the case because Magna doesn’t have an extensive range of tooling applications, but rather they “use the supply base.” In other words, he explains, suppliers generally keep up to date faster on some process areas than Magna can, so there is a tendency to use them. Still, he concedes that it is “really good to have some equipment in house so that you know you have the capability, and it provides the capacity for quick turnarounds.” This internal use of the technology has another important role, Deaville says. He thinks engineering design is absolutely important to have a handle on. The in-house equipment allows Magna personnel to keep up to speed on what additive allows in the way of design. Specialization Finally, serial production. “We are mostly in the high-volume world,” Deaville says. “So there is not so much applicability there.” Yet. While he thinks there will be growth in the production of end

parts in the auto industry, he believes that lower-volume variants is where additive has the best potential. He cites, for example, the MINI Yours Customized product initiative from a few years back, where customers of MINI vehicles could design special trim components, such as dashboard trim strips and exterior side scuttle covers, that BMW would then produce. Specialized offerings like this carry a higher premium, so as automotive is highly price sensitive, the applicability of additive is different than, say, in aerospace, where they produce limited numbers of exceedingly high-value items, like nozzles for rockets. Transitioning Capacity However, as the auto industry is undergoing a transformation, there is more potential. Not only is there the well-known shift to electrification, as well as increasing levels of driving automation, but also an influx of new manufacturers on the scene. On the subject of the new entrants, Deaville rhetorically asks, “How do you provide components and products to these new customers? How do you mitigate those risks, challenges, and costs? It is easy to build a part if you know that you’re going to need a million of them. But if you need 200 today, and you don’t know how many you’re going to need tomorrow, that’s a different situation.” As for electrification and automation, there are potential applications as well: Capital components that are designed, say, with integrated electronics that cannot be made another way could be where additive plays a bigger role. In fact, Deaville thinks that the big breakthrough for additive will come not from the equipment or materials side but from the end-product side, from “a product that really needs this process, this technology. If someone finds that one …” Then additive, even in automotive, will be a process just like milling and stamping. And then there will be what’s next – the ongoing technological dynamic.

If you have any questions about this information, please contact Gary at vasilash@gmail.com.

Join Modern Machine Shop in exploring the challenges facing American manufacturing. Through exclusive commentary from world class economists and manufacturing leaders, we shine a spotlight on the past, present and future of being made in the U.S.A.

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THE BIG PICTURE

INCREASED MACHINE VALUE POINTS TO A RISE IN AUTOMATION 2021 was a record year for manufacturing orders in the United States. Using USMTO data, we see that the average value of machines increases as unemployment decreases. The increase in machine value is likely due to additional automation being added, which is needed to overcome labor shortages caused by a tight job market.

TOTAL VALUE OF MACHINE ORDERS IN THE U.S. IN 2021 $5.9B

COVERED BY USMTO 232

NUMBER OF INDIVIDUAL TECHNOLOGIES

AVERAGE MONTHLY DATA SUBMISSIONS FROM BUILDERS AND DISTRIBUTORS 176

AVERAGE METAL CUTTING MACHINE VALUE AND UNEMPLOYMENT RATE IN THE U.S.

$250,000

16.0

Unemployment Rate Average Value

14.0

$200,000

12.0

10.0

$150,000

8.0

$100,000

6.0

4.0

$50,000

2.0

0.0

$-

1/1/11

7/1/11

1/1/12

1/1/17

1/1/21

1/1/15

1/1/16

1/1/13

1/1/18

1/1/19

1/1/14

1/1/01

1/1/10

7/1/15

7/1/12

7/1/13

7/1/17

7/1/21

7/1/14

7/1/16

7/1/18

7/1/19

7/1/01

1/1/02

1/1/03

1/1/05

1/1/07

7/1/10

1/1/20

1/1/04

1/1/06

1/1/08

1/1/09

1/1/00

7/1/02

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7/1/20

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7/1/06

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7/1/00

AVERAGE METAL CUTTING MACHINE VALUE AND MANUFACTURING JOB OPENINGS IN THE U.S.

$250,000

1200

Manufacturing Job Openings Average Value

1000

$200,000

800

$150,000

600

$100,000

400

$50,000

200

0

$-

1/1/11

7/1/11

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1/1/15

1/1/17

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1/1/14

1/1/16

1/1/18

1/1/19

1/1/01

1/1/10

7/1/12

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7/1/15

7/1/17

7/1/18

7/1/21

7/1/14

7/1/16

7/1/19

7/1/01

1/1/02

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ROAD TRIPPIN’ WITH STEVE ON WATCH ORIGINAL CONTENT LIKE

NETWORK SERIES

AN

BROUGHT TO YOU BY

TIME TO HIT THE ROAD AGAIN!

Join Stephen LaMarca on an epic tour to some of the most transformative manufacturing facilities in the United States . The tank may be full, but AMT’s technology analyst is running on “MT”! Stream Season 1 of Road Trippin’ with Steve now on IMTS.com. Find Season 2 as well as binge-worthy premium content, exclusive interviews, and stories covering the human side of manufacturing on IMTS+.

WATCH ROAD TRIPPIN’ WITH STEVE ON IMTS+ TODAY

MARCH/APRIL 2022

IMTS

21

Digital Manufacturing. Implemented. IMTS 2022 is coming to Chicago Sept. 12-17. Get a sneak peek at the digital manufacturing practices and products designed to address the industry’s most pressing needs. BY PETER EELMAN CHIEF EXPERIENCE OFFICER

As manufacturers wrestle with supply cha in and workforce challenges, they are increasingly searching for and adopting digital manufactur ing pract ices and

machines with new controls and conversational programming. They are making a concentrated effort to remove barriers to technology adoption. Additive Manufacturing The pace at which additive manufacturing (AM) technologies have accelerated to improve performance, lower lifecycle costs, and help reshore production is contributing to an increased use of AM in North America. More than 70 companies will be displaying new additive systems and software in the Additive Manufacturing Pavilion in the West Building of McCormick Place. And it is not just small parts that are gaining traction in AM. Large print beds continue to expand and deliver deposition precision and repeatability for the toughest standards, thanks to in-situ metrology and closed-loop controls. The Future – Now! IMTS 2022 will again host AMT’s ETC, which will present the absolute latest advancements on the horizon. You’ll see the 3D printing, automation and robotics, and 5-axis and hybrid machining techniques and processes that manufacturers are presently using to create parts for outer space missions for long-term presence on the moon and deep space exploration. You can also expect to see not only the technology used to make the parts but also the rocket parts themselves. Additionally, the film “What’s Now, What’s New, What’s Next” will focus on the industry’s challenges and opportunities to present a perspective of manufacturing’s future from key forward-thinking technologists who examine major shifts in markets, technology, materials, agile manufacturing, and revolutionary design strategies. See it all at IMTS 2022, Sept. 12-17, 2022, at McCormick Place in Chicago, Illinois. Get a head start and discover more at IMTS.com and register at IMTS.com/Register.

products, many of which are now embedded within our industry’s traditional machines that use automation and robotics, additive manufacturing, augmented and virtual reality, digital twin, generative design, and more. IMTS 2022 will be replete with multi-tasking CNC and hybrid machines; CAD-CAM, modeling, and simulation software; cybersecurity protocols; metrology systems; and other digitally enabled tools throughout all nine pavilions and in the AMT Emerging Technology Center (ETC). Following is just an inkling of what you’ll see. Cybersecurity The prioritization of protecting networks, machines, and programs from digital attacks is at an all-time high. More companies providing software for digital manufacturing are implementing safeguards and guidelines to ensure data is safe and behind firewalls. A visit to the CAD-CAM/Controls Pavilion and the Quality Assurance Pavilion, both in the East Building, will help you enhance your cybersecurity defense and prepare for the U.S. Department of Defense Cybersecurity Maturity Model Certification (CMMC) implementation. Automation and Robotics Augmenting CNC machines with digitally connected automation and robotics systems enables a new generation of multi-tasking machines, which will be on full display in the Metal Removal Pavilion in the South Building. These magnif icent machines combine cutting with turning, milling, drilling, tapping, deep-hole boring, hobbing, skiving, broaching, grinding, and surface preparation. Hybrid multi tasking machines add laser hybrid, friction stir welding, additive, and hot wire EDM. By performing all work in a single clamping, these machines cut setup time, eliminate the risk of losing zero when parts move between workstations, and free operators to perform other tasks. This multi-tasking technology especially appeals to job shops that would previously move parts between a lathe, vertical mill, and other machines to produce a final part profile. Even better, exhibitors are launching a new generation of more affordable

If you have any questions about this information, please contact Peter at peelman@AMTonline.org.

Find me, AerO, at IMTS 2022!

TECHNOLOGY ISSUE

IMTS

22

NETWORK SERIES

AN

Buckle Up for Texas: Watch Season 2 of ‘Road Trippin’ with Steve’ on IMTS+ BY MICHELLE EDMONSON SENIOR DIRECTOR, EVENTS & CONTENT

What makes a great road trip? Fun fr iends, good snacks, excel lent destinations, and brief run-ins with cults. What? That last one might not be on everyone’s checklist, but Stephen

Steve loves to take viewers behind the scenes and delve into history. In Season One of “Road Trippin’,” he embarked on an East Coast manufacturing history tour that began in Windsor, Vermont, at the American PrecisionMuseum. The second season takes that same focus on history and turns it toward additive manufacturing. It will be released in spring 2022 on the new IMTS+ – a digital channel dedicated to all things manufacturing technology. A Custom History Tour There was no better place to start a tour of additive manufacturing history than at the University of Texas at Austin. The “Road Trippin’” crew had the pleasure of learning from Jared Allison, Ph.D., the operations manager at the Center for Additive Manufacturing and Design Innovation. They also got to peek at some vintage videos of folks doing some 3D printing at the Center – in the ‘80s! From there, the crew headed to Essentium, a small startup that quickly became a heavy hitter in the industry by using a painstaking manufacturing process to create the highest-quality pellets and filaments for 3D printing.

LaMarca, AMT’s technology analyst, and his crew did it anyway while filming Season Two of “Road Trippin’ with Steve.” They recommend you focus on the snacks and additivemanufacturing. A Not-So-New Technology In the long-awaited second season of “Road Trippin’,” Steve and his team explored the history of additive manufacturing with stops throughout Texas. “When you talk to veterans in the industry, they will tell you they were invested in additive manufacturing as far back as the ‘80s, but so many people didn’t hear about it until 2010 or later. That is a 30-year gap,” Steve explained. “This season was incredible because it was like watching the Wikipedia page for additive manufacturing come to life! We explored the rich history of the technology and saw firsthand how things got started.”

USA Chicago

2022

Sept 13–14, 2022

Sept 12–17, 2022 McCormick Place, Chicago, IL

2023

Join us September 12–17 at IMTS 2022 as the AM4U Area presented by Formnext launches in the IMTS 2022 additive manufacturing pavilion. The AM4U Area is a multi-use area on the show floor where industry experts present on topics such as seminars for the adoption of industrial AM, as well as entrepreneurship and business models for start-ups and young enterprises.

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Sept 9–14, 2024 McCormick Place, Chicago, IL

FORMNEXTUSA.COM

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April 8–10, 2025 McCormick Place, Chicago, IL USA Chicago

PRESENTED IN PARTNERSHIP WITH

TECHNOLOGY ISSUE

IMTS

24

SNEAK PEAK

At EOS, Steve explored the future of metal 3D printing, including projects requiring a fine surface finish and using extreme specialty alloys. Next the team stopped in at Hybrid Manufacturing Technologies, a company making additive tool heads that can print parts using conventional milling machines. A Slight Detour Of course, it wouldn’t be “Road Trippin’” if there weren’t some outtakes that had to hit the cutting room floor – including a brief jaunt to Waco. After stopping in at Texas’ most epic gas station, Buc-ee’s – a Sheetz-meets-Walmart-meets-Cracker Barrel temple of American ingenuity and beef jerky – Steve spotted a sign for Waco and decided a side trip was in order.

The crew found a simplememorial to the tragic 1993 FBI siege, but they were surprised that members of the Branch Davidians still live at the infamous location. “People started coming out of their houses and pointing at us,” Steve said. “We hightailed it back to the highway. To be fair, we probably shouldn’t have driven past the ‘No Trespassing’ sign. Lesson learned.” Tune in to Season Two of “Road Trippin’ with Steve,” brought to you by EOS, to see what else Steve and the crew learned in Texas. You can’t make this stuff up. But with additive manufacturing you can, indeed, make anything! Buckle up, folks. We’re headed to Texas!

For questions about IMTS+, contact Michelle Edmonson at medmonson@ AMTonline.org.

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MT MAGAZINE

MARCH/APRIL 2022

27

Investment Trends in Emerging Technologies: Are We There Yet? What funding data says about the future for robotics, additive manufacturing, and the software tying it all together BY DAYTON HORVATH DIRECTOR, EMERGING TECHNOLOGY In recent years, emerging technologies appeared tobeonanever-endingnews treadmillmissing a “stop” button. But late in the first quarter of 2020, like everywhere else, that button appeared and was pushed, bringing the manufacturing technology sector to a halt. The subsequent recovery in the following 21 months led to the most active investment period on record for robotics, additive manufacturing, and the surrounding industrial software ecosystem. Evaluating the past, present, and future of an emerging manufacturing technology category benefits most from analyzing leading indicators whenever possible. In high-growth technologies or industries, financial investments and acquisitions are announced publicly within days or weeks and often include dollar amounts. The investment announcements,

TECHNOLOGY ISSUE

FEATURE STORY

28

when taken in aggregate, reflect the collective entrepreneurial effort of a sector and the interest level from financial investors as well as select corporate strategic investors. Similarly, acquisitions represent corporate interests in a technology’s future and, to a lesser extent, a maturation of the industry. Reviewing these data and trends was supposed to tell us if we were finally there, but they instead highlighted a different question: Where are we going? Robotics and Automation As a technology category, robotics and automation companies can be categorized broadly by the task types they intend to accomplish. For example, functional robotics companies develop application-specific solutions for agriculture, food preparation, or construction. Industrial robotics are more general and often serve as a platform solution, such as product assembly, in numerous industries. By contrast, health care and service robots serve the medical and hospitality sectors, respectively. More human-focused companies fall under education, to support STEM initiatives, or adaptive, to serve collaborative or social purposes. The last category, technology, represents the companies developing hardware, software, data, and services that enable all the tasks one can imagine. Global venture capital (VC) investment in robotics and automation companies has grown 67.4% annually from $532 million in 2016 to $7 billion in 2021. Any lost momentum from 2020was regainedwithmore than double the $2.9 billion in capital committed in 2021. Within this feverish excitement to capture market share, the largest increases in investment over the last five years were in health care, industrial, and service robots. Despite the attractive high margins in industrial, service, or health care applications, the $3.29 billion in combined funding for 2021 was slightly more than functional and technology companies in that year and, to an even greater extent, over the last five years. When a technology category takes off like this, acquisitions often track accordingly because large corporations are looking to buy time and acquire innovative smaller groups rather than miss opportunities attempting to build the same products or services internally. As a result, each of the last five years saw 17 mergers or acquisitions on average, with 2021 recording a high of 29 in line with investment activity. Geographic trends in robotics VC activity have unsurprisingly highlighted two powerhouse countries: China and the United States. In the last five years, VC groups have invested more than $14.2 billion, or 79.3% of all robotics investment dollars, Rest of World United States VC Investment Into Robotics Startups by Geography China

into companies headquartered in these two countries. U.S. robotics companies received more capital than Chinese robotics companies in every year since 2019. When comparing the investment profile, there were 144 U.S. and 129 Chinese companies in each country attracting this funding since 2016 and across a similar category distribution except in 2019 and 2021. Additive Manufacturing Investments in additive manufacturing (AM) are grouped into four categories. Core investments represent AM processes, 3D printers, and post-processing equipment developers alongside printing service providers, online marketplaces, and other hardware technology enablers. The software category represents companies with a specialization in additive manufacturing software across any part of the computer-aided design, engineering, ormanufacturingworkflow. Applications companies include specialized service companies focused on a particular industry or product class, such as heat exchangers, aerospace and defense, or medical implants. Lastly, materials investments cover materials suppliers, formulators, and developers. Global venture capital investment in additive manufacturing companies has grown 28% annually from $353 million in 2016

AM Investments by Category Over Time

Core Applications

Materials Software

$11..2130B

$1.20B

$1.00B

$833M

$800M

$676M

$600M

$568M

$400M

$363M

$353M

$293M

$180M

$200M

$0

2014 2015

2016

2017

2018

2019 2020 2021

Average Investment Round Size Over Time

$20M

$19.6M

$16M

$14.9 $14.9M

$12M

$11.5 $1 .5M $12.6M

$10.7 $10.7M

$8M

$8.6M $8.9M

$7.9M

$4M

$0

2014 2015

2016

2017

2018

2019 2020 2021

to $1.2 billion in 2021. Any lost momentum from 2020 (down $265 million) was regained twice over in 2021 (up $631 million). The pandemic-related delay in funding from 2020 added on to expected investment needs in 2021 and resulted

in more than double the demand for VC funding. More impressive than the demand was how it was satisfied: Average deal size increased to a record high of $19 million. Larger investment

100%

90%

28.70%

32.16%

40.80%

42.67%

80%

rounds most l ikely represent a combination of increased valuations and the overall startup landscape growing up. Of the four categories – core, applications, materials, and software – the market share

53.83%

56.44%

70%

14.25%

25.54%

60%

13.72%

50%

20.66%

40%

20.12%

18.85%

30%

53.59%

45.75%

45.47%

20%

36.66%

24.71%

26.06%

10%

0

2016

2017

2018

2019

2020

2021

Average Investment Round Size Over Time

$20M

$19.6M

$16M

$14.9 $14.9M

$12M

$11.5 $1 .5M $12.6M

$10.7 $10.7M

$8M

$8.6M $8.9M

$7.9M

$4M

$0