MT Magazine November/December 2022

AHEAD

ECONOMIC RECOVERY

RECESSION NEXT EXIT

CAUTION! SLOW ECONOMY

RESILIENCE RECOMMENDATIONS: MAKING IT by Douglas K. Woods | 01

THE GOOD, THE BAD, THE ECONOMY

IN CASE YOU MISSED IT ... REVISITING THE HIGHLIGHTS OF IMTS 2022 by Peter Eelman | 21

IF THIS WERE A MOVIE, YOU MIGHT WANT TO HEAD FOR THE EXIT. BUT STICKING AROUND – WHICH MAY NOT BE EASY – CAN BE REWARDING. by Gary S. Vasilash | 13

NAVIGATING THROUGH ECONOMIC CROSSROADS by Chris Chidzik | 27

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AMT provides the tools and resources to capitalize on opportunities. Navigate shifting market conditions with the latest data surveys. Reach your goals with insights from top economic, market, and political analysts and forecasters. Find the insights you need. Learn more about AMT membership at AMTonline.org

NOVEMBER/DECEMBER 2022

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A VIEW FROM THE WOODS

Resilience Recommendations: Making It

to meet our covenants or they were calling our loans. I decided that I needed to get all the help that I could, so I went out in the shop, climbed on the table of a DeVlieg in one of our machining bays, and addressed all of my employees. I told themwhat metrics we needed to hit. I told them that I couldn’t guarantee their jobs but that if we hit the numbers, we all had a better chance. I told them that if wages were going to be cut, mine would be the first. I held that meeting monthly. And I’ve held one every month since. When you are honest with people, when they can get information from the top rather than on the gossip-net, then they’re likely to provide the support your company needs. Yes, you’ll need to cut things. Look at what’s on the docket: Are there plans to modify the shop floor? Do a website update? Is that something you can delay for six months or a year? Look at the RFQs and quotes that are outstanding. Which are the ones that will have the greatest likelihood of turning into orders? Which are the ones that provide the greatest manufacturing overhead absorption? Consider whether there is something that you can do to improve your quote: Is there something that you could add that wouldn’t be inordinately expensive yet might give you a value added edge over your competitors? One of the things that I caution against is deciding that it is time to switch to another industry. This is not just because the grass may not be greener, but your company may have spent years building a reputation in your current industry, and that is something that you need to leverage to advantage. In another industry you simply don’t have the credibility, and that is something that you’re not going to achieve overnight. But what you can do – especially if you’re in a larger industry like auto or agricultural/construction equipment – is find opportunities with companies you aren’t working with. If you’re producing steering knuckles or valves or other components that companies in a given industry all use, you have a solid example of not just what you can do but what you are doing. A final suggestion. AMT has an array of resources that can help companies – through networking, surveying, forecasting – get the competitive edge that is arguably now more important than it has been for some time.

We all know that economically things are at a high level of uncertainty. Inflation, interest rate increases, continuing supply chain snags, rising material costs, employment challenges. I’m not telling you anything that you don’t know – nothing that you’re not experiencing.

Running a business is never easy. Now it is exponentially hard. Although I’ve been at AMT for more than a decade, prior to that, I was working at companies that are not unlike yours. I’ve had to do my best to manage through travails just like the ones you may be facing right now. I get it when things are hard. I’ve had to close a company. I’ve given a lot of thought to what one can do to deal with economic challenges. And I’ve always come back to the fundamentals – two things that you need to address, two things that, at the end of the day, you can control or influence: Sales up and costs down! I know – obvious, right? But if you make it a point to always drive that message with your employees, all the time (and especially now), you actually move the needle. So, one of the recommendations I make is for people to come up with three things they can do to help accomplish those two. Just three things. It may sound too simple, but when you get down to it, the only way a business exists is by having revenues in excess of costs. And I have a third suggestion: Think of the top three people in your organization who are core to driving sales up or costs down. They could be a salesperson, a plant manager, or someone in product development. Identify these people – people you know who will be with you in trying to keep things moving in a positive direction – and then bring them in close and share everything with them. Their assistance can be immensely advantageous. One of the first reactions that managers have is to cut costs. And one of the first places where those cuts occur is in personnel. While it is true that salaries are something that can have a quick impact on the balance sheet, it can have an equally quick and long lasting negative effect on operations. If sales is one of the two key elements, you need to have products to sell, which means that you need personnel to build them. You want what your company is building to be better than the rest because that can help give you a market advantage. Good people make that happen. Keep your employees in your camp. Communicate with them. I was running a company at age 30. Our bank gave us sixmonths

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

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Editorial Team Mary Cecile Neville Director, Content mcneville@AMTonline.org

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

Membership & Sales Bill Herman

VP, Sales & Membership bherman@AMTonline.org

Kristin Bartschi Director, Marketing & Communications kbartschi@AMTonline.org

Travis Egan Chief Revenue Officer tegan@AMTonline.org

Technology Benjamin Moses Director, Technology bmoses@AMTonline.org

Chris Downs Director, Audience Development cmdowns@AMTonline.org

Peter Eelman Chief Experience Officer peelman@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

Kathy Webster Managing Editor, Content kwebster@AMTonline.org

Pat McGibbon Chief Knowledge Officer pmcgibbon@AMTonline.org

Dan Hong Writer/Editor dhong@AMTonline.org

Becky Stahl Chief Financial Officer bstahl@AMTonline.org

Jacob McCloskey Graphic Designer jmccloskey@AMTonline.org

Tim Shinbara Chief Technology Officer tshinbara@AMTonline.org

Tiffany Kim Graphic Designer tkim@AMTonline.org

IMTS

Peter R. Eelman Chief Experience Officer peelman@AMTonline.org

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Michelle Edmonson VP, Exhibitions medmonson@AMTonline.org

Want to learn more about AMT membership? To learn how to make the most of your AMT membership, email us at membership@AMTonline.org.

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Table of Contents

Click See what’s trending on AMTonline.org

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Manufacturing Matters Get details on the latest industry news

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AHEAD

ECONOMIC RECOVERY

RECESSION NEXT EXIT

AMT Upcoming Events Important manufacturing technology dates and events to bookmark

11

CAUTION! SLOW ECONOMY

The Good, The Bad, The Economy by Gary S. Vasilash

13

The Big Picture Manufacturing & the U.S. Economy

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In Case You Missed It ... Revisiting the Highlights of IMTS 2022 by Peter Eelman

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IMTS+ Live at The Show by Michelle Edmonson

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Navigating Through Economic Crossroads by Chris Chidzik

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AMT’s Test Bed and the Pocket NC: Part 2 by Stephen LaMarca

31

The Effect of Elections on Manufacturing Technology Orders by Chris Chidzik

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COVER DESIGN Tiffany Kim | Graphic Designer

INFOGRAPHIC DESIGN Manufacturing & the U.S. Economy Tiffany Kim | Graphic Designer

MT Manufacturing Technology (USPS # XXX-XXX), November/December 2022, Issue 6, is published bi-monthly by AMT – The Association For Manufacturing Technology, 7901 Jones Branch Drive, Suite 900, McLean VA 22012. Application to mail at periodicals postage prices is pending at Merrifield, VA and additional mailing offices. POSTMASTER: Send address changes to MT Manufacturing Technology at 7901 Jones Branch Drive, Suite 900, McLean VA 22012.

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Click MTMagazine 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.

The Next Frontier in Flight On Wednesday, Sept. 14, Richard Browning – technologist, inventor, and founder of Gravity Industries Ltd. – demonstrated what’s possible when science, technology, engineering, and math (STEM) are put into action by piloting his Jet Suit over McCormick Square. “We are an almost Marvel-character manifestation of what STEM can deliver,” Browning has said. “Flying a 1050 BHP Jet Suit in front of a crowd of school children is a brilliant way to power the kids’ imaginations and ignite a passion for the science and engineering behind it.” See him fly at IMTS.com/RichardBrowning

Congress Reinforces U.S. Manufacturing Several new laws enacted in the 117th Congress – some bipartisan – represent more than $1.5 trillion in programs aimed at reinforcing the U.S. industrial base and reducing our reliance on foreign sources for critical minerals, technologies, and products. Learn how they address infrastructure funding, the semiconductor shortage, inflation – and if your business will be affected. Read more at AMTonline.org/article/new-laws-enacted-in-the-117th-congress

Tune In to the Tech Trends Podcast at IMTS 2022 Chicago’s got the dinner – let IMTS bring the show! AMT’s Benjamin Moses, director of technology, and Stephen LaMarca, technology analyst, bum-rushed the center stage at IMTS 2022 for a special Tech Trends Podcast episode to talk tech, exhibits ... and a little bit about pizza, too. Released every two weeks (because any more could cause heart disease), each episode satisfies your bottomless appetite for the latest trends and news on the cutting edge of manufacturing technology. Join Ben and Steve for hot takes, witty banter, sassy psychobabble, and get stuffed on tech along the way. Watch and learn at AMTonline.org/resources#podcasts

The New American Manufacturing Renaissance Using tech culture and a rebrand to redefine the way manufacturers recruit and retain talent. Discover the New American Manufacturing Renaissance, featuring Erica Swinney Staley, Meaghan Ziemba, Patrick O’Rahilly, Andrew “Drew” Crowe, and Will Healy III. Watch the face of manufacturing technology change at IMTS.com/NAMR

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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

To Be Current Is To Be Stale The velocity of technology development is accelerating. Is this a good thing? Only if the technologies can be adopted at the same pace. Luckily, as we saw at IMTS, implementation and use is becoming easier as human-to-machine interfaces grow more intuitive than ever. However, this format will not last, as the ever-changing workforce will drive new interfaces and controls. As mechanical systems and controls become more precise, accurate, and faster, what controls them should as well. The benefit for business will be a faster time to market. Can you reduce the number of setup pieces if your confidence in the program is high enough? Can you program a robot on the fly for the 10 different part numbers you are running today?

INTELLIGENCE

Talk of Recession Labeling a “recession” serves as a convenient way for economists to succinctly summarize the troubling economic underpinnings of a period of unfavorable business conditions. At MTForecast 2022, sentiment was mixed among economists regarding the United States entering a recession. Oxford Economics’ Mark Killion claimed a mild recession was unavoidable in 2023, while Charles Gascon of the Federal Reserve Bank didn’t believe it was a foregone conclusion. Determining a recession is not as simple as monitoring for two consecutive quarters of real GDP contraction. In fact, a committee sanctioned by the National Bureau of Economic Research is officially responsible. They interpret several economic factors to define the start and end of a recession. The last three recessions corresponded to a 23% decline in manufacturing technology order values. However pessimistic recession commentary may sound, it efficiently communicates otherwise complex economics, affording executives time to plan for the start and duration of a slowdown in their businesses.

SMARTFORCE

Smart Technology, Automation, Teacher Training, and Curriculum at IMTS 2022 Automation, robotics, and smart digital manufacturing technologies are widely recognized as the key solutions to the current labor shortage in U.S. manufacturing, and those technologies were on full display during the Smartforce Student Summit at IMTS. Educators and students were able to experience more than 80 robots, many of which come with teacher training, curriculum, and industry certifications; nearly a dozen virtual reality displays, including many that focused on robotics; and examples of cyber physical factory training solutions. Teacher training, curricula, and industry certifications will be critical in solving the shortage of career and technical education teachers, the foundational point of engagement to solve the labor shortage. For more information, visit IMTS.com/Smartforce.

ECONOMICS ISSUE

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MANUFACTURING MATTERS

INTERNATIONAL

Preparing for the Next Level of Global Exigence The world keeps turning. Seeing positive economic indicators paired with labor and supply chain challenges is unusual, but this is the state of the manufacturing industry in 2022. A vigorous economic recovery was on track until a combination of labor and geopolitical issues grew, and optimism around revenue growth and prosperity was held in check by caution from those ongoing risks. Workforce shortages now threaten operational efficiency, margins, and stability. More turbulence, geopolitical issues, and war are building complexity in an environment that’s already challenging to navigate. As leaders look to defend against disruption, they must make aggressive plans to fight talent scarcity, rising threats, and future disruptions, as well as adopt digital technology and advance sustainability agendas. Do you want to know more about the challenges and opportunities in different global markets? Reach out to AMT to explore possibilities around the world.

ADVOCACY

Midterms Are Over. What’s Next in Congress? Now that the elections are over, the 117th Congress has one more task to complete before it adjourns: funding the government for the remainder of fiscal year 2023, which began Oct. 1. The funding bill could present an opportunity to address two tax issues at the top of AMT’s priorities. The first is to delay or repeal the requirement to amortize R&D expenses beginning in 2022 without the option to deduct them in the year they are incurred. There is substantial bipartisan support for delaying its implementation, but sponsors of the provision have been unsuccessful in including it in other legislation that has since been enacted. Secondly, this is the last year for 100% bonus depreciation before it begins phasing out in 2023. AMT has been a champion of first-year expensing of capital equipment purchases since it was first enacted a decade ago and continues to advocate for its permanence. The 118th Congress convenes in January with a clean slate. Lawmakers must reintroduce any legislation previously considered to get on the agenda.

The Manufacturing Technology Series connects decision-makers from diverse industries with leading suppliers of advanced manufacturing technology, equipment and tooling. The Manufacturing Technology Series 2023: Four Regions . One Mission .

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WHAT’S HAPPENING

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

CMTSE Exams SMARTFORCE

MFG 2023 April 26-28, 2023 | Phoenix, Arizona 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.

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.

February 8, 2023 April 12, 2023 June 14, 2023 October 11, 2023 UPCOMING EXAM DATES

Formnext Forum Austin August 28-30, 2023 | Austin, TX FORMNEXT

Additive Manufacturing Media has partnered with Formnext and AMT to bring the highest-quality industrial 3D printing content to the United States. The Formnext Forum will feature top-notch speakers, high-value attendees, and ample networking.

MTForecast 2023 October 4-6 | Detroit, Michigan INTELLIGENCE

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IMTS 2024 IMTS September 9-14 | Chicago, Illinois

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005 MACHINE IN THE GHOST

Nan0 BYTES Repent, NanO, or this will be your fate!

I will, Phantom AerO! I will honor the holidays in my heart and try to keep them all the year!

I heard that, NanO!

With lights out manufacturing, He won’t know if I keep operating!

NanO 111O11O111O – 111111OO11O

!!!

Written by Dan Hong // Illustrated by Jacob McCloskey

I-I guess that doesn’t have to mean round-the clock work !

And so, with their AMT family gathered...

...NanO and AerO celebrated friendship, love, and (of course) manufacturing... all around the clock.

Happy H idays Fr AMT!

MT MAGAZINE

ECONOMICS ISSUE

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NOW PLAYING

NOW PLAYING

NOW PLAYING

AHEAD

RECESSION NEXT EXIT

THE DEADLINE TO BAN ICE SALES IS COMING.

ECONOMIC RECOVERY

CAUTION! SLOW ECONOMY

BOOST PRODUCTION. IMPROVE PRODUCTIVITY.

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NOVEMBER/DECEMBER 2022

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The Good, The Bad The Economy If this were a movie, you might want to head for the exit. But sticking around – which may not be easy – can be rewarding. The Previews Were this a movie, it would be PG-13-rated. Possibly R. The macroeconomic situation in the United States is not particularly good, and in the near-term, it isn’t going to get a whole lot better. Hard stuff. While movies are often fanciful, for manufacturers, the prevailing conditions are all too real. But they can be addressed and managed. A recent McKinsey report, “Delivering the US manufacturing renaissance,” opens, “US manufacturing may be poised for an overhaul and a rebound, with a potentially significant impact on the nation’s overall economy.” Which certainly sounds promising. It goes on to point out that in the United States, “manufacturing accounts for $2.3 trillion in GDP, employs 12 million people, and supports hundreds of local economies.” What’s more, manufacturing is responsible for “20 percent of the nation’s capital investment, 35 percent of productivity growth, 60 percent of exports, and 70 percent of business R&D spending.” It describes manufacturing in the United States as being at “an inflection point,” and that “Analysis by the McKinsey Global Institute suggests that restoring growth and BY GARY S. VASILASH CONTRIBUTING EDITOR

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The transformation that may be required of manufacturers could take up to 20 years, and to achieve that transformation, “creativity, commitment, and significant innovation” are required. Which brings us back to the R-rating: This is hard. Not for the weak of heart or for those not willing to make a complete commitment. Any margin reduction – to say nothing of seven points – is tough to take. But not as much as Chapter 7 or 11. The Lead Actress Mary Barra is the chair and CEO of General Motors, where she has worked for some 33 years. She began at the company in 1980 as a Kettering University co-op student at Pontiac Motor Division (R.I.P., 2010 – after 84 years in operation). Her first full-time job at GM was in 1985 as an acting superintendent, maintenance and tooling/senior plant engineer. In her career Barra has had roles in manufacturing planning, as plant manager, and as vice president of global manufacturing engineering. *Remember: Even if the supplier factory is next door, it can still burn down; this is not a hypothetical. In May 2018 a Meridian Magnesium Products of America Plant in Eaton Rapids, Michigan, supplying diecast components for vehicles, including the Ford F-150 and the Super Duty, had a massive fire that caused the vehicle manufacturer to halt production of the vehicles at Kansas City, Dearborn, and Louisville. To get the plants back up, Ford removed 19 dies from the damaged plant and even flew an 87,000-pound die in an Antonov** cargo plane to Nottingham, U.K., where it was installed in another Meridian plant; the parts produced there were then flown on daily Boeing 747 flights back to the United States. **The name “Antonov” may ring a bell, as that is the name of the Ukrainian company that built the world’s largest cargo plane, the Antonov An-225, which was destroyed by Russian troops in February 2022 during their invasion of Ukraine. Ukrainian companies are responsible for about 7% of the wire harnesses used by auto companies in the European Union. The invasion caused the shutdown of several suppliers, which, in turn, caused slowdowns or stoppages of production at facilities of Volkswagen and BMW. The Ukrainian suppliers are geographically proximate to the OEMs they are supplying. So, here is another example of something unexpected that can disrupt a supply chain. While this is highly unlikely to occur in the United States, odds are, people in Wolfsburg and Stuttgart didn’t think it would happen, either.

competitiveness in key manufacturing industries could boost US GDP by more than 15 percent over the rest of the current decade.” At this point you might think to yourself that this information should be G-rated – not only for general audiences but “Great!”

But the McKinsey analysis goes on to point out that while 44% of people in various manufacturing sectors say they have increased their regional sourcing as a consequence of the supply chain disruptions caused by the COVID-19 pandemic, and 51% say they think the approach (aka reshoring) will be relevant going forward, the consultancy warns that this is not going to be easy and that in order to accomplish the transition, it will require that

51% say that the approach (aka reshoring) will be relevant going forward ...”

companies have a “solid financial and operational plan that is aligned at all levels of the organization and spells out detailed actions and clear responsibilities for all stakeholders.” People need to know what is going on because the task is tremendous. One scenario laid out by the analysts presents a “hypothetical midsize US consumer electronics company with a highly globalized production network.” Not an unusual organization. Going to local production for this fictitious company will, as a result of rising factor costs that will occur during the next seven years, have its margins cut by six percentage points over the same time period. Add in the costs of carbon emissions and “likely supply chain risks,”* and five more points of margin are removed. And “Even aggressive levels of automation would still leave the manufacturer with a seven-point margin reduction.” All that said, the analysts point out: “Doing nothing may not be an option.”

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combustion engine program and GM’s intentions to be carbon neutral in its products and operations by 2040 underscore the importance of the multibillion-dollar investment in electric vehicles. (Keep in mind that Ford Motor has completely restructured its organization, with the primary elements being Ford Model e division, which will be dedicated to electric vehicles, and Ford Blue, the mission of which is to build out the company’s ICE vehicles while serving “as the engine that supports and powers Ford’s future” – it will be a source of funding for the electric side of the business. Ford is investing $50 billion in EVs through 2026.) What’s more, with developments like the state of California – which accounts for about one-eighth of all new car sales – banning the sale of new ICE vehicles after 2035, new engine programs are not particularly fiduciarily responsible. And realize that all global vehicle manufacturers are facing the same situation. For those that have significant sales in the European Union, know that although there are some carve-outs and exceptions, new ICE sales are to be banned there in 2035 as well.

All of which is to point out that Barra is an executive steeped in manufacturing. She not only knows what line rates are but what makes them happen, from servo drives to skilled trades. Under Barra’s direction, GM has made or announced the following investments in order to achieve the capacity to produce 1 million electric vehicles in North America by 2025: • $2.2 billion, Factory ZERO, Detroit/Hamtramck • $4 billion, Orion Assembly, Orion Township, Michigan • $2 billion, Spring Hill Manufacturing, Spring Hill, Tennessee • $154 million, Lockport Components, Lockport, New York • $491 million, Marion Metal Center, Marion, Indiana And with partner LG Energy Solution:

• $2.6 billion, Ultium Cells, Lansing, Michigan • $2.3 billion, Ultium Cells, Spring Hill, Tennessee • $2.3 billion, Ultium Cells, Warren, Ohio In her letter to shareholders reviewing 2021,

Barra wrote, “As we move through the year [2022], the massive scale of our transformation and the value it will deliver will become even more clear.” That GM is investing in

In the U.K. a ban will go into effect in 2030. In fact, countries from Norway to the Netherlands, South Korea to Singapore, have future ICE bans on their books. So, what does this mean? For one thing, the amount of

manufacturing cannot be disputed. Arguably this is greater than a generational spend. But what must be kept in mind about this is that the

machining that is associated with making engines – milling, drilling, turning, honing, broaching, grinding, etc. – and all of the components that constitute them – valves, cams, cranks, blocks, heads, pistons, etc. – is going to decrease. What’s more, the nature of transmissions for electric vehicles is entirely simpler than the

investment in electric vehicles is coming from somewhere, and one part of that “somewhere” is the internal combustion engine. The multi-decade life of an internal

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undertake the transformations suggested by the aforementioned McKinsey analysts, the situation will be scarier than “The Exorcist” (yes, R-rated). The Denouement The challenge faced by manufacturers is daunting. But for those who show the necessary resilience and agility; who are willing to make the investments in automation, digitization, labor, and logistics; and who change the nature of their organizations to be more proactive than reactive, the benefits can be great. Almost coincidental with the release of the Business Roundtable survey in September, the World Bank released a report titled “Is a Global Recession Imminent?” The answer to that question isn’t entirely clear, as on the one hand the report points out that although global growth forecasts from earlier in the year have been “downgraded significantly,” they “do not point to a global recession in 2022-23.” And on the other, the bankers have determined that there are two developments that are symptomatic of a global recession: a weakening of global growth in the previous year and a sharp slowdown or recession in several major economies. They found that the first has already occurred, and the second “may be underway.” While that may make you feel like heading to the exits, a statement from World Bank President David Malpass that was made with the release of the report should provide some sense of solace: “To achieve low inflation rates, currency stability and faster growth, policymakers could shift their focus from reducing consumption to boosting production. Policies should seek to generate additional investment and improve productivity and capital allocation, which are critical for growth and poverty reduction.”

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step-gear transmissions that are found in the vast majority of cars, trucks, and SUVs on the road right now. So, traditional engine plants are going to decrease in number, as will the suppliers to those plants. In mid-September the Business Roundtable released its Q3 CEO Economic Outlook Index, a composite that combines CEO projections for sales, capital spending, and hiring over the next six months. The top line is that the overall index declined 12 points from Q2 2022. A read on the situation: “Global economic uncertainty continues to temper CEO sentiment for domestic plans and expectations,

Boost production. Improve productivity. That’s what makes all the difference. If you have any questions about this information, please contact Gary at vasilash@gmail.com.

as reflected in this quarter’s survey results. In the face of ongoing economic and geopolitical challenges, U.S. policymakers should pursue pro-growth policies that will strengthen the economy and generate upward mobility for all Americans. We must remain steadfast in putting in place the building blocks for future economic growth.”

That’s Mary Barra. She also happens to be the chair of the Business Roundtable. The “building blocks for

future economic growth” are arguably the sorts of things that go into a Cadillac LYRIQ electric SUV, not a Cadillac Coupe de Ville. For companies that are unwilling to

Build Your BUSINESS The 2021 World Machine Tool Survey is now available. The report gives statistics frommachine tool consuming and producing countries and compares them in real U.S. dollars. It is the one resource that can give you all the info you need to target new and growing markets, and expand your business.

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WMTS21_Print-Ads.indd 1

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MANUFACTURING & THE U.S. E THE BIG PICTURE

35% PRODUCTIVITY GROWTH

60 EXPO

20% NATION’S CAPITAL INVESTMENT

MANUFACTURING ACCOUNTS FOR:

PROJECTED MACHINE TOOL SPENDING BY INDUSTRY

PROJECT SPENDIN

34.7%

12.9%

8.3 8.2

8.5%

7.9% 7.3%

6.5% 6.4%

4.9%

3.8% 3.4%

3.9% 3.8%

3.0% 2.7%

3.4%

2.4%

0.0% 10.0%

0.0% 10.0% 20.0% 30.0% 40.0%

PROJECTED MACHINE TOOL CAPITAL SPENDING

PROJECTED CUTTING TO

$10,000,000,000

$7,000,000,000

$9,500,000,000

$6,500,000,000

$9,000,000,000

$6,000,000,000

$8,500,000,000

$8,000,000,000

$5,500,000,000

$7,500,000,000

$5,000,000,000

$7,000,000,000

$4,500,000,000

$6,500,000,000

$4,000,000,000

$6,000,000,000

2018 2019 2020 2021

2022 2023

2018 2019

What the numbers say about capital spending as we move into a possible recession.

ECONOMY

Data provided in partnership with Gardner’s Capital Spending Survey.

70% BUSINESS R&D SPENDING

Capital spending is projected to decrease for machine tools but increase for both cutting tools and workholding into 2023.

0% ORTS

TED CUTTING TOOL NG BY INDUSTRY

PROJECTED WORKHOLDING SPENDING BY INDUSTRY

34.2%

28.9%

11.1%

25.4%

3% 2%

9.0%

6.0% 6.0%

% %

4.7%

4.1% 4.0%

1.8% 1.6%

% 20.0% 30.0% 40.0%

0.0% 10.0% 20.0% 30.0% 40.0%

OOL CAPITAL SPENDING

PROJECTED WORKHOLDING CAPITAL SPENDING $3,900,000,000

$3,700,000,000

$3,500,000,000

$3,300,000,000

$3,100,000,000

$2,900,000,000

$2,700,000,000

$2,500,000,000

2018 2019 2020 2021

2022 2023

2020 2021

2022 2023

NOVEMBER/DECEMBER 2022

IMTS

21

In Case You Missed It ... Revisiting the Highlights of IMTS 2022

BY PETER EELMAN CHIEF EXPERIENCE OFFICER, AMT

Women Make Manufacturing Move

What a show! We are incredibly grateful to each of you who gathered in Chicago and joined in the excitement of IMTS 2022. Whether you were exploring CNC machines,

For the first time, we were pleased to host an IMTS specialty program, Women Make Manufacturing Move (WMMM), to engage, connect, and celebrate the women driving the future of manufacturing. WMMM, powered by AMT, included multiple sponsors for its

3D printers, or automation, welcoming visitors in your booth, or diving deep into one of the dozens of conference sessions, you likely did not experience all of IMTS 2022. Here are just a few highlights that impact the future of manufacturing. To the Stars Our country’s expanding space exploration program comes with immense opportunity for advanced manufacturing. This was abundantly clear at the entrance of North Hall in the AMT Emerging Technology Center (ETC), which featured a life-sized 3D printed lunar habitat that you could walk through and touch as adventurers on their way to Mars will one day do. The ETC also displayed a live additive cell by the Ingersoll Camozzi team, which printed and milled a prototype lunar habitat door, as well as the Siemens software used to design and print the structure. Two films in the ETC profiled future-facing projects: Rosie, a lunar habitat structure for research and living designed by Saga; and the Giant Magellan Telescope, designed to be the most powerful telescope on Earth, and the innovative groundbreaking work done in its construction. In his IMTS+ Main Stage speech, Dr. Jeffrey Ahrstrom, CEO of Ingersoll Machine Tools, reminded us that “Manufacturing is – and must continue to be – focused on what’s over the horizon – increasingly outside the bounds of Mother Earth. The future for humanity is extraterrestrial, but to realize this future, radical developments and groundbreaking changes within manufacturing – within your businesses – needs to take place.” Superhero Flies in Jet Suit Chicago has been the backdrop for many superhero movies. On Wednesday of IMTS 2022, manufacturer, technologist, and Gravity Industries founder Richard Browning flew his patented Jet Suit three times over McCormick Square. He looked right at home. IMTS ismeant tobemany things, but among themisashowcase for what happens when STEM and dreams are applied in real life. “I have a family background in aviation and engineering, and a deep passion for human capability,” says Browning. “There are serious applications for Jet Suit technology in paramedic first response and special military forces mobility.” What is flying in a Jet Suit like? Browning says, “You have complete 5-axis freedom. There are no controls. It is you moving as effortlessly as skiing or riding a bike. It’s pretty euphoric.”

three events: AT&T Business, EOS, CERATIZIT USA, Project MFG, Manufacturing USA, PNX Labs, and Zinc Partners. During its events throughout the week of IMTS 2022, WMMM offered curated sessions, inspiration, and networking opportunities. WMMM will continue to offer more programs throughout the year. Lisa Block, chief revenue officer at Hybrid Manufacturing Technologies, offered action-ready tips to improve company culture. She says: “Manufacturing our best, designing our best, and releasing the best products is inevitably bound to our ability to create encouraging and affirming work environments. These environments are transformative, where people feel seen, appreciated, and that it will, ultimately, be worth it to do their best work.” M4M 5K at IMTS 2022 Raises Over $32,000 Also on Wednesday of IMTS 2022, hundreds of people from the IMTS community gathered to run, jog, and walk in the Miles for Manufacturing (M4M) 5K. Participants made their way along DuSable Harbor and Lake Shore Drive, enjoying a stunning sunrise that set Lake Michigan aglow – all while aiding the next generation of manufacturers. M4M raises funds to support STEM and robotics education programs that act as talent pipelines for our industry. This year, $32,131.81 was raised, which will all go to such programs. Since its inception in 2014, M4M has raised and donated $174,016.81. IMTS continues to cover all the M4M costs so that 100% of the fees and funds raised are donated. Looking Ahead Indeed, as we embrace thinking outside of Earth, follow our passion for STEM, and welcome diverse voices and talent, our industry will thrive by providing solutions to the manufacturing floor, returning to the moon, and reachingMars – and beyond. News, photos, and videos from IMTS 2022 will continue to be posted on IMTS. com. You can stay even more connected at IMTS+, our multi-media content destination. If you have any questions about this information, please contact Peter at peelman@IMTS.com.

ECONOMICS ISSUE

IMTS

22

IMTS+ Live at the Show In the booths, on the main stage, in the sky, and on the show floor. BY MICHELLE EDMONSON VICE PRESIDENT, EXHIBITIONS

But no matter how dedicated you might be, you couldn’t have seen it all!

Whether you’re still basking in the post-IMTS glow or itching to do it all again, we’re sure you’ll agree that IMTS was quite a show! And the IMTS+ team captured it all with reporters, camera

Don’t worry. The IMTS+ team was everywhere – gathering insights, capturing awe-inspiring moments, and documenting an industry busy growing. Here are just a few snippets that capture the magic of IMTS and the manufacturing technology community. Tune in to watch and read at IMTS.com/plus.

crews, and writers at every turn. You’ve seen the numbers. IMTS was large, well-attended, and brimming with innovations and educational opportunities.

IN THE BOOTHS (IMTS.com/ShowFloor)

ON THE MAIN STAGE (IMTS.com/MainStage)

“Our focus has been not just to do additive, but to instead really integrate additive – to be a bridge to conventional manufacturing. This is the digital future of manufacturing technology.” Jason Jones Co-Founder and CEO, Hybrid Manufacturing Technology

“Now is the time that builders in America can get going. We’ve got makers all across the country ready to bring manufacturing back close to the source of demand. Siemens stands ready with the tech to do it.” Barbara Humpton President and CEO, Siemens Corporation

“We have a big variety of customers – from little mom-and pop shops that have a couple of machines and start out in their garage, to large customers like General Electric and Pratt & Whitney. Everybody needs different levels of customer care, and we provide that.” Markus Stolmar President and CEO, United Grinding

“We are totally obsessed with precision and reliability. We take big things, like a lot of the big machines here at IMTS, and we try to make them small, affordable, and accessible.” Bre Pettis Owner and CEO, Bantam Tools

“The world moves forward and progresses because of the work that manufacturers do – the work that we do here at IMTS.” Dr. Jeffrey Ahrstrom CEO, Ingersoll Machine Tool

“My partners and I owned a machine shop for 17 years, and we needed some software, but we just couldn’t find anything on the market we thought was worth buying, so we decided to build something ourselves. We never intended to sell it to anyone else, but here we are.” Paul Van Metre Senior Education Marketing Specialist, ProShop

“The automotive industry transformed society in a little more than a decade. At Boston Dynamics, we feel we are at the same pivot point for robotics being introduced into our daily lives – not only robotics in manufacturing, but also in how we work, play, and live. There could not be a more exciting time to be in the robotics industry.” Eric Foellmer Vice President of Marketing, Boston Dynamics

SAVE THE DATE FOR

SEPTEMBER 9 – 14, 2024 MCCORMICK PLACE, CHICAGO

IMTS, the largest manufacturing technology tradeshow in the Western Hemisphere , showcases the transformative technologies that are enabling our industry to reach new levels of productivity and profitability.

STAY UP-TO-DATE AT IMTS.COM

ECONOMICS ISSUE

IMTS

24

IN THE SKY (IMTS.com/InTheSky)

IN THE AISLES (IMTS.com/ShowFloor)

“Everything here will help me in this business … That’s the beautiful thing about the show – all the new innovations that you get to find.” Matt Spicuzza Sales Engineer, Meredith Machinery

“We are never satisfied with anything we build. Within minutes of flying, there will be stuff we want to tweak and change. Thanks to additive, we can change the CAD design, and, in a week’s time, we will be testing it again. It is an endless, relentless, curious journey to make it better.” Richard Browning Founder and Chief Test Pilot, Gravity Industries

“I am into software, and there is so much cool and exciting stuff here. I hope to bring some of this technology back to India and help the companies back home with collaborations.” Praful Satasia Founder and CEO, Ariprus Digicon

“Watching these million-dollar machines up close and personal is quite interesting.” Josh Lifshitz Account Manager, Globe Metal Company

“It is helpful to see what you are going to work on after graduation. It is also amazing to meet owners and engineers.” Abdulazis Alhindi Student, Illinois Institute of Technology

+ ON ALL YOUR SMALL SCREENS

+

In 2023, IMTS+ will have new content, new seasons, and new shows. Watch on your desktop, laptop, or smartphone any time! Stay tuned throughout 2023 for: • Season 3 of “Road Trippin’ with Steve” • Season 3 of “Manufacturing Explorers” • Season 2 of “Smart(er) Shop” • More content from the IMTS Show Floor and IMTS+ Main Stage • A new show on the future of manufacturing technology • More “Profiles in Manufacturing” featuring industry leaders • Economic updates, interviews, technology perspectives, industry podcasts, and breaking news

THE SHOW CONTINUES AT IMTS.COM – ALL DAY, EVERY DAY.

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

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With locations in China, India, Mexico, and Eastern Europe, AMT o ers our members the international market expertise needed to e ectively move into new markets abroad, rebuild the world economy, and connect next-generation global supply chains. We are here (and there) for you. Learn more about AMT membership at AMTonline.org

MT MAGAZINE

NOVEMBER/DECEMBER 2022

27

Navigating Through Economic Crossroads Charting Where We Have Been and What May Lie Ahead.

BY CHRIS CHIDZIK PRINCIPAL ECONOMIST

In early October, AMT staff and members descended upon St. Louis with a sense of anticipation and caution, much like the stream of settlers who had begun their journey west centuries before. Unlike the settlers, St. Louis was the endpoint of their travels: the location of the annual MTForecast conference. After a year of mixed signals from economic data and a summer of pessimistic outlooks, everyone was eager to hear the story behind the data and the expectations for the future. This article will look at some of the unique economic conditions leading up to the conference as well as a few key insights shared by the economists on the likely direction ahead. To better understand the likely paths before us, it is first critical to review the economic roads that brought us to this point. The first half of 2022 was met with an ominous economic signal: two consecutive quarters of declining gross domestic product (GDP). Since GDP measures the total output of a country, this generally signals that its economy is in recession. Unlike most recessions, this period was defined by an unusually low unemployment rate and high consumer demand. Economists at MTForecast pointed out that the observed GDP contraction was more the result of supply challenges than the demand-driven