MT Magazine May/June 2025

FEATURE STORY

27

MAY/JUNE 2025

OT-IT silos, manufacturers could drive product innovation, optimize operations at scale, and deliver seamless customer experiences. 4. Navigating the New Trade Landscape: Tariffs and Policy Shifts Washington insiders Omar Nashashibi and Caitlyn Sickles delivered a fast-paced update on U.S. trade policy under President Donald Trump’s second term, focusing on tariffs that will directly impact manufacturing supply chains. New tariffs on imports from China, Canada, and Mexico, including a 60% tariff on Chinese steel and aluminum and a 25% tariff on Mexican imports, were set to take effect in March. Additionally, reciprocal tariffs will target countries imposing high trade barriers on U.S. exports, a move intended to level the playing field but likely to escalate trade tensions. For AMT members, the most relevant takeaway is the high possibility of renewed capital expenses due to changes in tax legislation, which could influence investment decisions. As manufacturers brace for these changes, the strategic focus should be on adapting pricing strategies and securing supply chains to navigate the evolving trade landscape.

6. Silicon Carbide: Powering the Future of Manufacturing

Frank Ferrante’s presentation highlighted the transformative potential of silicon carbide (SiC) technology in revolutionizing the automotive, industrial, and energy sectors. Electric vehicles (EVs) are projected to reach 32 million units by 2030, and SiC is pivotal in enhancing power density, efficiency, and cost-effectiveness. But the impact extends beyond EVs to industrial motor drives, where SiC’s efficiency reduces the total cost of ownership and improves performance.

To support this rapid growth, Wolfspeed is making substantial investments in U.S.-based manufacturing, including the construction of The John Palmour Manufacturing Center for Silicon Carbide in Siler City, North Carolina, and the expansion of the world’s first 200-mm SiC fab in Mohawk Valley, New York. These state-of-the-art facilities are designed to scale SiC production tenfold while maintaining high sustainability standards, aligning with Wolfspeed’s commitment to a 50% reduction in scope 1 and 2 greenhouse gas emissions by 2030. For AMT members, the key takeaway is twofold: On the supply side, SiC technology offers significant growth opportunities in power transformation and efficiency, especially in automotive and industrial applications; on the demand side, Wolfspeed’s investment in U.S.-based manufacturing signals a strategic shift in semiconductor production, likely opening new domestic supply chain on-ramp opportunities. Jacob Horne’s presentation on the Cybersecurity Maturity Model Certification (CMMC) program provided manufacturers in the defense supply chain with a timely and in-depth update. He emphasized that CMMC Level 2 will soon be a requirement for Department of Defense (DOD) contracts, with an anticipated ruling by June 2025. Horne compared CMMC to quality management certifications, urging businesses to integrate cybersecurity into existing quality processes to streamline implementation. For AMT members in the defense supply chain, many of you may have already started the certification process to avoid disruptions in contract eligibility. Horne’s presentation 7. Cybersecurity in Manufacturing: A Strategic Imperative

5. Economic Outlook: Growth Opportunities Amid Challenges Connor Lokar brought his trademark high energy to the stage, painting an optimistic picture of the next few years of the U.S. manufacturing economy. With the United States maintaining its position as the top destination for foreign direct investment and industrial production on the rise, 2025-2026 is poised to be a prime time for manufacturers to expand. Lokar emphasized that strategic capital investment and workforce efficiency will be critical for growth despite inflationary pressures and rising labor costs. His key advice for AMT members? Lock in fixed interest rates for five to seven years and develop long-term inflation strategies. With market share gains expected through 2029, now is the time to align resources strategically and invest in digitalization and AI to stay competitive.