MT Magazine May/June 2025

BEYOND CONTINUOUS IMPROVEMENT

BEING ‘THE ONLY ONE’ by Douglas K. Woods | 01

MFG 2025: 9 STRATEGIC TAKEAWAYS FOR AMT MEMBERS by Cathy Ma | 25 MANUFACTURING TECHNOLOGY’S RESILIENCE TO ECONOMIC HEADWINDS by Christopher Chidzik | 32

NO MATTER WHAT YOU MANUFACTURE — BE IT AIRPLANES, AUTOMOBILES, OR AMPHIBIOUS ASSAULT VEHICLES — IT MAY BE TIME TO RETHINK YOUR APPROACH, AND NOT JUST IN A MINOR WAY. by Gary Vasilash | 12

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MAY/JUNE 2025 THE EMERGING MARKETS ISSUE VOLUME 4 | ISSUE 3

PRESENTS

Join AMT’s Travis Egan as “The Architect” in the latest IMTS+ video series and as the host of Hexagon LIVE Global 2025, taking place June 16–19 in Las Vegas . This event, featuring companies such as NASCAR’s winningest team, Hendrick Motorsports, is built for manufacturing leaders, technologists, and change agents to explore how AI, digital twins, and advanced metrology are being applied in the real world.

A VIEW FROM THE WOODS

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Being ‘the Only One’ Palo Alto, California, is where the Grateful Dead was formed in 1965. Palo Alto has also been the birthplace of creative, innovative companies you are no doubt familiar with: Google, Hewlett-Packard, Facebook, Tesla, and PayPal. And, like these other outfits, the

Conversely, another company decided to stay small. It specialized in a grinding operation that no other company was doing. Consequently, it achieved greater margins on its work. These companies deliberately decided to become “the only one” in their space, which separated them from the competition. Many of those companies were in what I call “the death zone.” This doesn’t mean they were all dying. But it does mean that, without any distinctive or different characteristics to set them apart, companies had to slog it out day to day to keep things going. They would get average margins – at best. They were always on the edge, always working to keep things going, not shifting the paradigm but trying to hold on to the status quo. While having advanced manufacturing equipment is important to creating a distinctive capability, there is something that cannot be overestimated when it comes to the success of an organization: The people. You’ve got to get good people. You’ve got to keep good people. There are two aspects to this, one hard and one soft. A quote from consultant Tom Peters is relevant here: “Hard is soft. Soft is hard.” That is, your facility is hard: It is a physical space. Your organization is soft: It consists of relationships between people. So, it is important to make your facility as clean, organized, and appealing as possible. Simple things, like epoxying the floors and getting the best workbenches, make a big difference. Make sure the facility looks like a place that is as cool to a young person as something in Palo Alto. Doing those things is easy – the hard that’s soft. But the soft part – the organization – is hard. Or at least something that you as a leader must work at. If people are your most important asset, then what are the things you are doing – every day – to ensure that each person knows they are valued? Valuing people means doing things like making sure your staff realize they have a career path and that they are working with like-minded people who want to succeed collaboratively. It is important to understand that you’ve got to consistently work at this. If you are “the only one” in terms of what you offer to the market and to your employees, then other companies are aware of what you are doing, so you have to shift the paradigm. Which brings me back to Palo Alto. As David Packard, the “P” in “HP,” once said: “Take risks. Ask big questions. Don’t be afraid to make mistakes. If you don’t make mistakes, you’re not reaching far enough.” Try to be “the only one.”

Grateful Dead has weathered many changes and reinvented itself over the years. Such was the case in 1995, when its lead performer, Jerry Garcia, died. That could have been the end – and that wouldn’t have been a bad run, either. A 30-year run for a small business is quite a feat, considering the Bureau of Labor Statistics reports that 65% of new businesses fail within their first 10 years. But the Dead, it seems, perseveres. The current rendition of the band is Dead & Company. (Yes, ironic.) At this point, you may be thinking: “Am I reading the right magazine?” Bear with me. There is a point to this. Consider: In 2024, Dead & Company played 30 shows at the Sphere in Las Vegas – and grossed over $130 million. This 59-year-old organization still attracts fans. Forget persevering – this was thriving. One of the band’s important characteristics was defined by legendary concert promoter Bill Graham. Graham said: “They’re not the best at what they do; they’re the only ones that do what they do.” This is not to question the band’s musical abilities. You can be the best, but before long, you’ll find that someone is better. But being “the only one”? That’s a sustained competitive advantage – arguably what has kept this 60-year-old institution prosperous. This notion of being “the only one” is something that can be useful to your organization. Yes, there is a great distance between a group of musicians and a manufacturing operation, but the objectives are the same: to attain and maintain a customer base. Early in my career, when I ran a contract manufacturing operation in Rochester, New York, I realized that there were a whole lot of other contract manufacturing operations in the city. But some of them were special. They did things others weren’t doing. One company specializing in stamping work expanded to add secondary operations like welding and painting, providing its customers with the option to get something semi-finished. Many companies offered stamping, but this one added more. Another had about a dozen machines. Its owner recognized that there were plenty of other companies in the area with about a dozen machines, so he decided to scale up the operation. With 30 machines, it had a capability that others with a dozen didn’t have. It could take on bigger contracts, and with those contracts, it could go to the bank and get better interest rates than it could when it was small.

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

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Masthead

Editorial Team

Executive Team Douglas K. Woods President dwoods@AMTonline.org

Membership & Sales Bill Herman VP, Sales & Membership bherman@AMTonline.org Technology Ryan Kelly VP, Technology rkelly@AMTonline.org Intelligence Kevin Bowers VP, Research kbowers@AMTonline.org Smartforce Catherine Ross Director, Community Engagement cross@AMTonline.org

Cathy Ma VP, Audience & Content cma@AMTonline.org

Travis Egan Chief Revenue Officer tegan@AMTonline.org Becky Stahl Chief Financial Officer bstahl@AMTonline.org

Kristin Bartschi Director, Marketing & Communications kbartschi@AMTonline.org Chris Downs Director, Audience Development cmdowns@AMTonline.org

Kathy Keyes Managing Editor, Content kwebster@AMTonline.org Dan Hong Writer/Editor dhong@AMTonline.org Jacob McCloskey Senior Graphic Designer jmccloskey@AMTonline.org

Advocacy Amber Thomas VP, Advocacy athomas@AMTonline.org International Ed Christopher VP, Global Services echristopher@AMTonline.org

Tiffany Kim Graphic Designer tkim@AMTonline.org

Hailey Sarnecki Graphic Designer hsarnecki@AMTonline.org

IMTS

Michelle Edmonson VP, Exhibitions medmonson@IMTS.com

Bonnie Gurney VP, Strategic Partnerships & Industry Relations bgurney@IMTS.com

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Mark Kennedy Senior Director, Exhibitor Services mkennedy@IMTS.com Allison Konczyk Senior Director, Exhibitions Operations akonczyk@IMTS.com

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Table of Contents

Click See what’s trending

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Manufacturing Matters Get details on the latest industry news

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CONNECT PREBUILT GIGACASTED COMPONENTS

AMT Upcoming Events Important manufacturing technology dates and events to bookmark

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APPLY FINISHING COMPONENTS (WHEELS, BUMPERS, LIGHTS, ETC.)

ATTACH FULLY ASSEMBLED DOORS, ROOF, AND WINDOWS

Beyond Continuous Improvement by Gary S. Vasilash

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The Big Picture Path Through Uncertainty: The Impact of Tariffs on Manufacturing Technology

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Lessons From a Career Well Executed by Gary S. Vasilash with introduction by Michelle Edmonson

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Passion Project: The Harmony of Art & Technology by Bonnie Gurney

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MFG 2025: 9 Strategic Takeaways for AMT Members by Cathy Ma

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Off the Cuff: How Heritage Textile Tech Still Shapes the Future by Stephen LaMarca Quality at Speed: How Hendrick Motorsports Redefines Manufacturing Performance by Travis Egan Manufacturing Technology’s Resilience to Economic Headwinds by Chris Chidzik

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COVER DESIGN Jacob McCloskey | Senior Graphic Designer

INFOGRAPHIC DESIGN Path Through Uncertainty: The Impact of Tariffs on Manufacturing Technology Tiffany Kim | Graphic Designer

MT Manufacturing Technology (ISSN # 2836-2896), May/June 2025, Issue 3, is published bi-monthly by AMT – The Association For Manufacturing Technology, 7901 Jones Branch Drive, Suite 900, McLean VA 22102. Periodicals Postage Paid at Merrifield, VA and at additional mailing offices. POSTMASTER: Send address changes to MT Manufacturing Technology at 7901 Jones Branch Drive, Suite 900, McLean VA 22102.

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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.

Latest IMTS+ Series Delivers a Blueprint to Innovation AMT’s Travis Egan hosts both “The Architect,” the latest IMTS+ video series, and the Hexagon LIVE Global 2025 event on June 16-19 in Las Vegas. Tune in to watch it on IMTS.com and then join manufacturing leaders, technologists, and change agents at the event to explore how AI, digital twins, and advanced metrology are applied in the real world. AMT members receive discounted registration with code MI-AMT-Promo. HexagonLIVE.com Robot or Cobot: Which Is Right for You? While traditional robots are still the only choice for certain manufacturing applications based on payload, speed, and other factors, collaborative robots (cobots) have gained widespread acceptance over the past decade. Watch this recent webinar to learn how cobots have been installed, where they have been applied, and how to determine which robot is right for you and your company. IMTS.com/Weldon Reshoring and the Truth About Tariffs Tariff volatility and global disruptions are reshaping supply chains. Explore how reshoring can reduce risk and what major manufacturers are doing or considering in response. Harry Moser, founder of the Reshoring Initiative, explores the unexpected shifts, rapid deployment, and swift tariff alterations that are raising eyebrows. AMTonline.org/article/truth-about-tariffs Capital and Manufacturing’s Future The conversation around capital in emerging technologies is shifting toward a more optimistic future grounded in realistic valuations and strategic growth. Private capital is not returning to 2021 or 2022 levels, but the capital that is available is smarter, more targeted, and aligned with long-term trends like strategic manufacturing investment, supply chain resilience, and AI-driven innovation. IMTS.com/Capital-Influence2 How Psychology and Little Bets Help Marketers Marketing has evolved as much as advanced manufacturing technology. In other words: This ain’t your grandparents’ marketing. So, how do you balance short-term revenue generation needs with long-term operational initiatives? Change your mindset, manage conflicting demands, and move beyond tactical overload. Don’t worry – it may be easier than you think. AMTonline.org/article/little-bets

ATLANTA

SPS debuts in North America, showcasing the latest in automation, IIoT, robotics, and more. Connect with industry leaders and discover real-world solutions driving smart manufacturing forward. Scan for More Info The Premier Automation Technology Event is Coming to the U.S.!

September 16 - 18, 2025 Georgia World Congress Center Atlanta, Georgia USA

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.

TECHNOLOGY

Manufacturing Is Driving Emerging Markets Do you like the idea of nozzles in jet engines that save you 20% fuel? How about heat exchangers that save 22% weight in Formula One applications? Want to order in lot sizes of one for mass customization? Advanced manufacturing technologies and processes largely drive these advancements in emerging markets. While this is not a new concept, how manufacturers operate in these markets is evolving. These markets require fast iterations, knowledge of limitations, experience pushing past boundaries, and application lessons learned – and iterating from that knowledge. To continue seeing innovative products, manufacturing and quality must increasingly connect with design to continue seeing innovative products.

INTELLIGENCE

Small Chips Make a Big Splash in Manufacturing Semiconductor manufacturing is undergoing a transformation that is significantly influencing manufacturing technology. While traditional machine tools are not directly involved in fabricating semiconductor wafers, they play a crucial role in the production, assembly, and maintenance of the specialized equipment that enables chipmaking. High-growth sectors such as electric vehicles (EVs), AI/data centers, and defense are driving the surge in semiconductor demand. EV platforms now require two to three times more chips than internal combustion vehicles, with semiconductor content per EV ranging from $1,500 to $3,000, compared to $400-$600 for traditional vehicles. AI accelerators for data infrastructure demand new architectures and high-yield wafer processes, creating a ripple effect for machinery makers, prompting greater need for ultra-fine machining, cleanroom-compatible workholding systems, and automated metrology solutions that ensure tight tolerances and zero defect output.

SMARTFORCE

Emerging Markets? How About Emerging Talent? Don’t wait for the Smartforce Student Summit at IMTS 2026 – stay engaged with workforce trends year-round! Keep pace with innovation through the Smartforce Newsletter and Smartforce Blog and connect in person at the Bright Minds Student Summits during SME’s MT Series shows. Follow these platforms for timely insights, resources, and opportunities to prepare for the future of our workforce. Learn more at IMTS.com/smartforce.

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ADVOCACY

EPA Announces Regulation Rollback President Donald Trump’s Day One executive order to roll back most Biden-era regulations took a significant step forward with an announcement from U.S. Environmental Protection Agency (EPA) Administrator Lee Zeldin. On March 12, Zeldin launched a major deregulation initiative, hailed by the Trump administration as the “biggest deregulation action in U.S. history” – a comprehensive package of 31 measures aimed at unleashing American energy, lowering living costs, revitalizing the auto industry, and restoring power to the states. The deregulatory actions will address a range of regulations impacting water, air, and climate rules for power plants, oil and gas companies, vehicle emissions, and manufacturing and industrial facilities. This move represents the latest push in the Trump administration’s ongoing effort to reduce the federal government’s influence over energy and environmental policy, underscoring its commitment to reshaping the regulatory landscape with an emphasis on less government intervention.

INTERNATIONAL

Southeast Asia Emerges In manufacturing, “emerging” can mean a new technology, an evolving industry sector, or a rising geographic region. Combine all three, and you get one word: opportunity. Nowhere is this more evident than in Southeast Asia (SEA), which is rapidly developing its manufacturing capabilities to meet increasing demand as global supply chains shift. To illustrate this, the region’s metal cutting industry, which is grappling with a shortage of skilled labor, is turning to automation, advanced machinery, precision tooling, and high-performance accessories to produce more complex, higher-value components. Among the countries presenting strong potential in SEA, Vietnam has the fastest-growing economy, with GDP growth forecasted at 7%-8% in 2025. Last year alone, Vietnam saw over $25 billion in foreign direct investment, with major commitments in aerospace, automotive, electronics, and semiconductors. American companies like Apple, Boeing, Ford, GE, Intel, and Nike have already established a presence. To support U.S. manufacturers and AMT members in tapping into this vibrant market and its opportunities, AMT has opened a new office in Thailand. Learn more at AMTonline.org/international-access.

WHAT’S HAPPENING

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AMT Upcoming Events Learn more or register at AMTonline.org/events. Your datebook will thank you.

UP NEXT

AMT MEMBER MEETUPS AMT Member Meetups are regional gatherings of the AMT community. These free events bring together diverse perspectives from every corner of the supply chain to help manufacturing communities grow and innovate. Let’s meet: Chicago, IL: June 4, 2025 Cleveland, OH: June 18, 2025 Detroit, MI: July 16, 2025 Indianapolis, IN: July 30, 2025 AMT WEBINAR, PRESENTED BY FINDIQ Don’t Let Your Service Wisdom Retire: Practical Tools for Knowledge Transfer June 17, 2025 | Online As experts retire, valuable experience and knowledge risk being lost. Explore practical, proven approaches to knowledge transfer, AI tools that support the process, and how to preserve and share expertise before it walks out the door.

INTELLIGENCE The 2025 MTForecast Conference October 15-17, 2025 | Schaumburg, Illinois MTForecast offers attendees the latest economic and global forecasts, manufacturing technology market insights, and information on new opportunities and challenges. Learn from renowned forecasters and industry experts about the pitfalls and opportunities shaping manufacturing technology over the next few years.

Los Angeles, CA: August 20, 2025 St. Louis, MO: September 24, 2025

SMART PRODUCTION SOLUTIONS SPS Atlanta September 16-18, 2025 | Atlanta, Georgia

THE D25 SUMMIT

D25 November 18-19, 2025 | Carmel, Indiana

SPS covers the entire spectrum of smart and digital automation – from simple sensors to intelligent solutions, from what is feasible today to the vision of a fully digitalized industrial world. AMT is partnering with SPS to bring the renowned global trade event to the United States.

Training. Tactics. Territories. Manufacturing technology distributors are invited to the only meeting in the United States programmed specifically to meet their needs and interests. Plug in to the most influential sales network in the nation.

IMTS IMTS 2026 September 14-19, 2026 | Chicago, Illinois

MANUFACTURING TECHNOLOGY SERIES

Located in key manufacturing hubs across the country, the MT Series brings four long-standing regional manufacturing events together under one umbrella. MT SERIES EAST: May 13-15, 2025 | West Springfield, MA MT SERIES WEST: October 7-9, 2025 | Anaheim, CA MT SERIES SOUTHEAST: October 21-23, 2025 | Greenville, SC MT SERIES SOUTHWEST: November 4-6, 2025 | Dallas, TX (EASTEC | WESTEC | SOUTHTEC | HOUSTEX)

The largest manufacturing trade show in the Western Hemisphere returns to Chicago! 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.

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Beyond Continuous Improvement

No matter what you manufacture — be it airplanes, automobiles, or amphibious assault vehicles — it may be time to rethink your approach, and not just in a minor way. BY GARY S. VASILASH CONTRIBUTING DIRECTOR For the most part, engineers and manufacturers focus on developing and producing things in a way that falls within the definition of “continuous improvement.” That is, they analyze the product being produced and look for ways to enhance it. Perhaps this means changing a feature or deploying a new material. But regardless of how the upgrade is achieved, it is still the same product, just upgraded. Similarly, people tend to make incremental improvements on the manufacturing floor, such as tweaking feeds and speeds in machining operations or reconfiguring layouts to minimize material handling. These are cases where existing processes are essentially augmented.

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What would otherwise be a welded assembly of a considerable number of parts, this Volvo floor structure is a single casting – a “mega casting” in its parlance or a “gigacasting” in Tesla’s, which has popularized this revolutionary approach to vehicle construction since it started deploying it in 2020. Not only does this reduce the need for stamping machines and welding robots, but it also improves material use and logistics, all of which reduce manufacturing costs. (Image: Volvo)

from passenger cars to focus on trucks and SUVs, the Toyota Tacoma has been the top-selling small pickup for 20 consecutive years, and the aforementioned RAV4 was the bestselling SUV for eight years in a row. In the J.D. Power 2025 U.S. Vehicle Dependability Study, which looks at vehicles after three years of ownership, which is arguably a metric of quality (although in auto parlance it is considered “dependability” or “reliability”), Toyota’s Lexus is the leading brand; Toyota has six model-level awards, and the Toyota Avalon is the top overall model in the study. This is not to brag about Toyota but to make the point that the Toyota Production System gets results. Significant results. Today, Toyota is the top vehicle manufacturer in the world in terms of volume. It produced 10.4 million vehicles in 2024, besting Volkswagen Group’s 8.4 million, or about 24% more. But You Need To Go Beyond Kaizen However, unless something black swan in nature occurs between when this is written and when you read this, Toyota

Kaizen Works Regardless of what is being manufactured, in recent years, companies have turned to the Toyota Production System, a philosophy built around the core principle of “kaizen,” which is Japanese for “continuous improvement.” Industries in the United States have paid keen attention to the Toyota Production System since 1990, when MIT published “The Machine That Changed the World,” a pioneering text that explores the automotive industry and Toyota’s lean production principles in action. Year after year, Toyota makes changes to its products and in its plants. And it works. In 2024, the Toyota RAV4 had sales of 475,193 in the United States, becoming the country’s bestselling vehicle and surpassing the Ford F-150, which had held the top spot for 42 years running. Clearly, this is an example, in part, of the continuous, incremental improvement approach. The Toyota Camry has been the bestselling passenger car in the United States for 23 consecutive years, arguably taking its competition from Ford, GM, and Stellantis out of the segment. And while the Detroit Three have turned their attention away

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isn’t the most valuable vehicle manufacturer in the world. Not by a long shot. That market cap leader is Tesla, which surpassed Toyota in July 2020 and hasn’t looked back. So, is Toyota’s continuous improvement approach being eclipsed by Tesla’s strategy of disruptive improvement? Just as “The Machine That Changed the World” caused companies to reconsider their processes, Clayton Christensen’s “The Innovator’s Dilemma” made companies rethink their product development practices. Christensen pointed out that companies tend to focus on “sustaining innovation.” This is fundamentally continuous improvement, tweaking and adjusting the product and the process, but essentially doing the same thing in the same way it has always been done. It causes a company to think, “So, why change?” Disruption Isn’t Smooth One of the examples Christensen uses in the book is the disk drive industry. A few of you will remember the 8-inch floppy disk. It was introduced in 1971 and was followed by the 5.25-inch floppy disk

in 1976, the black, flexible disk you slotted into your desktop PC that ran MS-DOS. (In 1982 the 3.25-inch disk was introduced, which had a rigid plastic case, but that is post-“Dilemma.”) Christensen points out that the floppy disk manufacturers were good at producing disks, had high technical competency, and were making money from this approach. Why would they change? The thing about disruptive innovation is that the disruptive product typically underperforms existing technology, which doesn’t make a whole lot of sense. However, it is also generally simpler and less expensive than established products, and it may address a market niche. Said another way: If you continually improve a product, the transitions are comparatively smooth. But if you take a disruptive approach, things are jarring – but very well may address a new or growing market demand. When was the last time you saw an 8-inch floppy disk? When did you last buy a computer with a disk drive? These days, you’re

lucky if you find a USB-C port. This brings us back to Tesla.

The powertrain of a Model 3 has fewer parts by several orders of magnitude than the internal combustion engine in a Toyota

The original moving assembly line in the Ford Highland Park plant in 1913. Yes, there have been significant changes since then. But now companies are rethinking this sequential approach to assembly, which may achieve huge savings in manufacturing operations. (Image: Ford)

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Camry (which is now hybrid-only, so you have to add in that system, too). So, it is simpler. And while it is more expensive (starting around $42,500 versus $28,700), from a utility point of view, it underperforms: The top range of a Model 3 is 363 miles compared to a Camry’s 663. But Tesla is completely changing how vehicles are designed, engineered, and produced, something that other global automakers – including Toyota – are following. The reason: the ability to improve profit margins by reducing manufacturing costs. And these changes apply to the production of any product, though not necessarily on a one-to-one basis: Adaptation to conditions is required. What Are You Trying To Accomplish? One of Tesla’s advantages – which might have seemed like a disadvantage – was that the company hadn’t made cars before. Change is challenging, and Tesla didn’t have decades of legacy that would feed into “we’ve always done it this way” thinking. Instead, the thinking used by Tesla is based on “first principles.” This essentially means you figure out what you are trying to accomplish and then use the simplest method to do it. One thing Tesla has revolutionized is building the structure of a vehicle (although there are vehicle manufacturers in China that have been doing this, too – and again, because these Chinese companies are generally new, they aren’t restricted in their approach by existing equipment and policies). Conventionally, many parts are stamped and welded (or otherwise fastened) to create a vehicle’s rear structure. Tesla engineers looked at the Model 3 and saw 171 parts in the front and rear structure. Making and assembling all those individual pieces is highly complex, from the tooling to the machinery to the logistics. Tesla decided to take an entirely different approach for the Model Y: “gigacasting.”

They cast the components with a machine that can move some 100 kg of molten aluminum into a die cavity in roughly 100 milliseconds and then applied over 6,000 tons of pressure. The 171 parts became two. Gigacasting is now used for other vehicles’ front and rear structures. (This has implications for equipment providers for companies like Telsa, ranging from suppliers of welding robots to those of metal-removal equipment. According to manufacturing expert Sandy Munro, CEO of Munro & Associates, for example, “the front Cybertruck casting has about 30 holes – top, bottom, and sides. All are square to each other, and most are cast holes.” He adds, “The amount of machining is minimal and consists mostly of drilling and spot-facing. Some of the tapped inserts are self-tapping directly into the cast holes.”) The point is not about the benefits of gigacasting. Rather, this is about looking at what is to be accomplished and how it might be done in a profoundly different way. Which brings us to a second change Tesla is making to the way vehicles are manufactured: “unboxed assembly.” You may be more familiar with this in the context of a “modular build.” In a traditional moving assembly line, a vehicle structure is built up sequentially, piece by piece (a “box” is built – think body-in-white – and then more parts are added). In the unboxed assembly approach, large subassemblies are simultaneously manufactured and then integrated. The classic assembly line is replaced by automatic guided vehicles. Consequently, the size of an assembly plant can be reduced by as much as 40%. This is not just a savings of bricks and mortar but all other costs associated with a facility, from energy to insurance. According to Mathew Vachaparampil, CEO of Caresoft Global, an engineering and automotive benchmarking The Assembly Line Works. But After 100 Years…

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company, Chinese and European automotive companies are developing unboxed operations to achieve significant savings. While some people who don’t manufacture cars might think this isn’t relevant to them, they must consider: (1) It very well may be relevant if what is being manufactured requires the assembly of other elements (although a redesign may be required to perform a modular build efficiently); and (2) Henry Ford installed his first moving assembly line in 1913 – isn’t it likely that incremental improvements have run their course, and a disruptive approach is necessary? It is reasonable to think that what you’re making now – and how you’re making it – is keeping the lights on and sustaining your business. Gigacasting and unboxed assembly may be interesting, but they don’t fit into what is presently paying the bills. Still, some are doing things differently, which may undercut what you are doing, and the market you are serving may slowly (or quickly) cease to exist. Consider an approach from 1943. Lockheed was a supplier of aircraft to the military that did things in a traditional way. The Air Tactical Service Command (ATSC) came to Lockheed and said it wanted a jet fighter developed in 180 days. Given that it ordinarily took years to deliver a prototype, not a handful of months, imagine what the folks at Lockheed must have thought when the guys from ATSC left the room. Instead of laughing it off (or taking the contract and then operating business as usual), they formed a new division: Skunk Works. Under aeronautical engineer Kelly Johnson, Skunk Works was a small team comprised of fewer than 30 engineers who worked independently from Lockheed’s main operations. They delivered the XP-80 prototype – which was to become the P-80 Shooting Star – in 143 days, 37 days faster than their allotted time. How did they do it? One key factor was codifying 14 rules for fast, innovative, and efficient product development, including: “The number of people having any connection with the project must be restricted in an almost vicious manner. Use a small number of good people (10% to 25% compared to the so-called normal systems).” If Lockheed had put the ATSC job in the hands of the traditional product development team rather than creating this new group, that assignment would have eventually been fulfilled, but … Creating your own independent group that can apply “first principles” thinking may give you a competitive advantage that continuous improvement cannot. Do It Differently How can you address this?

Although Elon Musk is getting plenty of attention for making changes to manufacturing methods, when it comes to product development, Kelly Johnson, the first head of Lockheed Martin’s Skunk Works, is still preeminent in his approach to small-team, fast operations, and his lessons are still valuable 80 years later. (Image: Lockheed Martin)

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

THE BIG PICTURE

To better understand the impact of tari s, AMT – The Association For Manufacturing Technology conducted a spot survey of manufacturing executives from member companies that manufacture and import manufacturing technology products or components. Path Through Uncertainty: The Impact of Tariffs on Manufacturing Technology

How Manufacturers Are Responding to Tariffs

Cost pressures are reshaping operations The majority of respondents reported increased landed costs, raised prices, and a margin reduction for imported goods.

86% reported increased landed costs

83% saw a margin reduction for imported goods

76% have raised prices

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Tariffs are widespread and disruptive

One in two respondents reported that the tari s impact more than 90% of their portfolio

54% reported procurement and logistics planning disruptions.

Manufacturers are adapting but remain concerned Manufacturers are absorbing costs, shifting sourcing, investing in automation, and raising prices while expressing deep concerns about long-term competitiveness and uncertainty.

Key Takeaways The data makes one thing clear: Taris are reshaping operational and strategic planning across the U.S. manufacturing technology sector. From pricing adjustments and sourcing shifts to margin compression and investment freezes, companies are making dicult tradeos in real time.

Scan here to view the “Tari Impacts on Manufacturing Technology Q2 Spot Survey” report.

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Lessons From a Career Well Executed Things learned during a career full of challenges, opportunities, and community. BY GARY S. VASILASH CONTRIBUTING DIRECTOR Peter Eelman, the chief experience officer of AMT, is retiring after almost 30 years. Peter has, quite literally, spent the entirety of his 45-year career working on IMTS. On his first day at his first job, he was tasked with figuring out how to consolidate his company’s five divisions into one major booth for their display at IMTS 1980. Unbeknownst to him, that first step into the professional world would shape his career for nearly half a century. Since then, Peter has led the orchestration and execution of the biennial IMTS – The International Manufacturing Technology Show in Chicago. His impact on both the manufacturing and trade show industries has helped them evolve, innovate, and thrive. Given his extensive involvement and leadership over the years, we want to acknowledge Peter’s contributions to the manufacturing technology community. We also want to share some of the lessons he’s learned throughout his career. While the context of each may differ from what you deal with every day, they are completely transferable – and quite valuable.

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Remember Who the Real Customer Is Eelman says a notion commonly held by people who organize and execute trade shows is that the exhibitor is the customer. After all, they buy the space on the exhibition hall floor. But Eelman’s approach focuses on the attendees, those who show up at the venue. If he can entice them to attend even when they are not in a buying cycle, then he can assure the exhibitors that their presentations will get traffic. This thinking can even be applied to equipment sales: If you can convince the operator that a machine or system will improve their job, they’ll likely be a good ally. Just Because It Worked Before Doesn’t Mean You Should Do It Again Plenty of successful IMTS events have been held during Eelman’s tenure at the helm. You’d think he’d simply use the template from one show to the next. After all, it worked, right? But Eelman says he does something with his team after they decompress from each IMTS. They have a meeting. Eelman gets in front of the group with the various plans, layouts, and documentation they created for the last show. And he throws it all into a wastebasket. He does this to dramatically underline the need to make the next one not only better but different. Many companies still have the “if it ain’t broke, don’t fix it” mentality. While that might be comfortable and easy, it won’t be that way for long, given changing customer dynamics. Stick With It While this seems to contradict the previous lesson, it is about an individual, not an organization or event. Coming out of Drexel University, Eelman started his career in the manufacturing technology industry at the Wiedemann division of Warner & Swasey. His new boss told him he would likely stay in the industry for his entire career. That must have sounded silly to someone in their early 20s, even in 1980. But he was right. Eelman has stayed in the industry. Warner & Swasey is no longer in business, and Wiedemann was acquired in 1989. Eelman says that some of the folks he went to college with have had a multitude of jobs in a multitude of industries. He isn’t against getting different experiences. But he is a proponent of depth of knowledge. The grass may seem greener elsewhere. And it may be. But then, sticking with something – if you have the opportunity to advance with it – could, in the long run, be absolutely advantageous from a career perspective.

Prepare To Pivot IMTS 2018 could have been the “drop the mic” event for Eelman. Records abounded: 129,415 people registered, and 2,123 booths represented 2,563 exhibiting companies on 1,424,232 square feet of exhibit space. More than 2,500 people attended technical conferences. It was simply an amazing event. Additive manufacturing had a huge footprint. The Olli, a digitally manufactured self-driving bus from Local Motors, gave rides to attendees. Dell, Microsoft, SAP, and others exhibited in a Digital Factory. Eelman and his colleagues pulled off a magnificent show. Had he left after the 2018 IMTS closed, he would have gone out as a success. Then 2020 happened. The State of Illinois banned public gatherings in response to COVID. And IMTS didn’t happen at McCormick Place. Rather than throwing in the towel, Eelman and his colleagues made a pivot. They took the event online through IMTS spark. IMTS spark included over 2,000 exhibitor showrooms, live equipment demonstrations, Q&A panels, educational sessions, and more. Eelman and his AMT colleagues had to do things they hadn’t done before – at least not to the extent of IMTS spark. Sure, they’d organized and executed online events – but for a few hundred people, not thousands. They reached out to new partners and tapped into the resources of new people. And even though it was the first time since World War II that a physical IMTS was cancelled, their pivot worked beyond expectations. Success Goes Both Ways One of Eelman’s long-time colleagues put it simply: “He makes you successful, so you want to make him successful.” Clearly, putting on a huge event with a multitude of moving parts like IMTS requires the skills, talent, and hard work of a team. Eelman established his team, hiring people for roles that he thought they were best suited to handle. When it was time to start executing, he provided clear objectives and let them use their abilities to get it done. Like any undertaking, part of getting it done is essential work – but not glamorous. Tedious tasks. Eelman would join in and help support his team. He was with them. Consequently, they delivered. He knew they would.

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

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Passion Project: The Harmony of Art & Technology BY BONNIE GURNEY VICE PRESIDENT, STRATEGIC PARTNERSHIPS & INDUSTRY RELATIONS

When the notes fit together just right, you are making music. When the parts fit together just right, you are manufacturing music. The new IMTS+ Original Series “Passion Project” kicks off with “The

Mazak, and Renishaw had a prototype and were ready for test cutting. In addition to protecting workers, the process had to be precise to preserve both instrument quality and the valuable raw materials that go into custom guitars. Skulan explains, “The challenge here was you have a very beautiful piece of art, and it is a one-off. We needed to measure it and do a cut on it, and every single one is different.” With no room for error, the team developed a process that uses technology to ensure the bindings and trim fit every time. The automated freizing process has now been deployed on the Martin factory floor for nearly two years and has proved itself. The proof is in the performance. “It was a win-win for us when it comes to preserving our operators, making things better for our operators, and it produces better quality and actually improves the appearance of our instruments as well,” concludes Goffredo. Along with collaboration comes strong partnership. All three managers are quick to point out that the success they achieved wouldn’t have been possible without the amazing work of the talented people on each of their teams. Whether you are learning chord progressions or programming a machine, there are many parallel skills required for both music and manufacturing. In this partnership, the art of making outstanding instruments blended perfectly with the technological capabilities of modern manufacturing. Don’t miss this inspiring fusion of art and technology in the first episode of the new IMTS+ Original Series “Passion Project.” Watch “The Harmony of Art & Technology” now to see how C.F. Martin & Co., Mazak, and Renishaw enhanced guitar-making at IMTS.com/Passion/Project/HART.

Harmony of Art & Technology.” This first episode explores how art and technology blended harmoniously in a collaboration between legendary music manufacturer C.F. Martin & Co. and two manufacturing giants, Mazak and Renishaw. Together, the companies created an innovative approach that blends the craftsmanship of instrument-making with the precision of manufacturing. Their project highlights the harmony of art and technology, resulting in an improved guitar fabrication process. Martin Guitar, which has built instruments since 1833, used this new process in their 3 millionth serialized instrument. The Players When Lou Goffredo, the engineering services manager at Martin Guitar, went to IMTS – The International Manufacturing Technology Show, he was seeking a solution to a long-standing challenge: the manual freizing process. A time-consuming and labor-intensive endeavor, manual freizing involves cutting a channel around the perimeter of a guitar body to install decorative elements. Martin Guitar is dedicated to constantly improving the quality of both their instruments and processes. With the full support of Executive Chairman Chris Martin, a sixth generation leader of the company, Goffredo set out to explore automation solutions. At IMTS, Goffredo met Bill Curtis, the applications engineering manager at Mazak, and Dan Skulan, the general manager of industrial metrology at Renishaw. They immediately connected. They were all proud to work for family-run or family-owned businesses and eager to work together. The key goals of the project were to increase quality and reduce operator injuries.

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

“They wanted to reduce repetitive motion injuries and improve the safety of the process for the operator,” notes Curtis. After spending months developing the ideal solution, Martin Guitar,

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MFG 2025: 9 Strategic Takeaways for AMT Members BY CATHY MA VICE PRESIDENT, CONTENT AND AUDIENCE

The MFG Meeting 2025 in San Antonio was an energizing and timely gathering of manufacturing leaders, innovators, and policy experts who shared insights on the forces shaping the future of our industry. Here are nine key takeaways we hope will provide all AMT members with the latest business intelligence and insights.

1. AI Is Revolutionizing Manufacturing — but Strategic Partnership Is Key

Deepesh Chouhan’s keynote showcased how Nvidia is pushing the boundaries of artificial intelligence (AI) in manufacturing. One of the standout demonstrations was a large language model (LLM) that aids in chip design, enabling engineers to drastically reduce development time from months to minutes through conversational interactions with a purpose-built AI assistant. Nvidia’s SyncTwin Omniverse, when integrated with the OpenUSD open-source data model, can offer detailed factory simulations that allow manufacturers to visualize how new machines integrate into production lines before they even arrive on-site.

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through predictive maintenance), and waste reduction (with AI enhancing CNC programming efficiency). Barnes underscored the importance of data integration and contextualization in democratizing insights and upskilling workers. For AMT members, Barnes recommended starting small with AI by assessing workflow optimization opportunities and identifying incremental steps for implementation. 3. AI Trends Shaping Manufacturing in 2025 With a career spanning two decades across operational and informational manufacturing technology, Praveen Rao from Google Cloud walked AMT members through AI’s ability to accelerate innovation by up to 10 years and automate 50% of tasks, enabling teams to accomplish more with fewer resources.

However, implementing AI is not without challenges. Chouhan pointed out that cost, latency, and accuracy are the top three hurdles, but Nvidia’s industry partnerships with leading technology companies such as Siemens and Google are helping businesses overcome these barriers to achieve a positive ROI. His presentation underscored that the key to successful AI integration is leveraging a robust partner ecosystem. Chouhan concluded with a look into the future of physical AI, which comprises three facets: (1) digital intelligence with physical systems, (2) moving beyond traditional robotics to include humanoids for complex tasks, and (3) autonomous facility management solutions. As AMT members asked thought-provoking questions about AI’s role in additive manufacturing (AM) and data security, it became clear that AI isn’t just about automation; it’s about rethinking how we innovate and operate. With two decades of experience developing cutting-edge industrial technologies at Cisco and Microsoft, Bryce Barnes explored AI’s transformative impact on manufacturing. He traced AI’s evolution from the early days of the Perceptron to the emergence of generative AI and LLMs, emphasizing how deep learning and neural networks have revolutionized cognitive functions in machines. 2. AI’s Impact on Manufacturing — Practice Use Cases

A key concept Rao introduced is multimodal AI, which processes text, images, video, and audio to produce highly contextual and intuitive outputs. This grounding approach leverages data from multiple sources and formats, from enterprise systems to audio and visual feeds, to ensure more robust insights and accurate results. In addition to the multimodal AI concept, which can be seen as an “input” system, Rao brought up five key AI agent use cases, which can be seen as the “output” models for business applications: 1. Customer agents: personalized, real-time support and feedback analysis 2. Creative agents: generating visual and verbal content 3. Data agents: data normalization, predictive modeling, and anomaly detection 4. Code agents: code generation, optimization, and automated testing 5. Security agents: real-time cybersecurity threat detection Finally, he tied these AI capabilities to Google Cloud’s Industry 5.0 framework, outlining how connected data infrastructures and cloud computing can break down traditional operations technology and information technology (OT-IT) silos. AMT members could benefit from reviewing how their operations technology converges with information technology. From Rao’s presentation, we learned that by intentionally building data and technology infrastructures that connect the

Taking the newfound AI-powered intelligence into practical use, Barnes highlighted key use cases: safety management (with AI agents optimizing incident response), factory operations (where AI enhances productivity