MT Magazine November/December 2023

MANUFACTURING MATTERS

NOVEMBER/DECEMBER 2023

9

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

What’s Clearer Than Dollar Signs? Technology and economics are intertwined, and a company’s interest in new technologies often depends on if it allows them to make more of something, make something more efficiently, or make something more valuable. This return on investment is a common way to assess the viability of technology implementation. Other common factors to consider are maintenance, upgrades, and end-of-life replacements. A few often-overlooked liabilities are the cost of security and opportunity cost of depreciated/obsolete technology. These days, the industry is changing its financial model of equipment to increase visibility of value and improve upkeep. This transparency of financial risk will enable manufacturers to better formulate their investment strategy. While some say, "If it ain't broke, don't fix it," maybe it should be: "If it ain't current, it's broke."

INTELLIGENCE

An Economic Balancing Act The U.S. economy currently hangs in a delicate balance. The Federal Reserve’s stringent monetary policy, aimed at controlling inflation, is designed to slow down economic momentum, raising concerns over increasing unemployment – a key indicator of a potential recession. An increase in unemployment can lead to reduced consumer spending, lowering demand across various sectors and heightening recession risks. However, a recent Wall Street Journal survey showed slight optimism, as experts reduced the immediate recession probabilities from 54% to 48%. This subtle but positive shift hints at a somewhat improved economic outlook, aligning with the sentiments expressed by economists at AMT’s MTForecast conference, which was held in early October in Detroit. They predicted a likely but shallow recession in the early part of 2024, but one of the firms has subsequently revised, taking recession out of their base case. The predominant challenge involves fine-tuning monetary policies to reduce inflation to the Fed’s targeted 2% without tipping the economy completely on its head and instead guiding it toward the sought-after soft landing. Stay in the Loop: The Smartforce Student Summit Coming Soon to Your Inbox Save the date! The highly anticipated Smartforce Student Summit, co-sponsored by AMT and Tooling U-SME, will take center stage inside Level 2 of the East Building of McCormick Place at IMTS on Sept. 9-14, 2024, continuing its 25-year history of delivering memorable experiences that inspire thousands of students to pursue manufacturing careers. Now MT Magazine readers can keep up with the nation’s foremost event for MT education by visiting IMTS.com/smartforce to join our email list. Or follow us at @IMTS_Smartforce on Instagram and Twitter to get the latest news, receive exclusive previews of student-friendly exhibits, and catch up on the Smartforce Blog featuring all things workforce and education, alongside updates from student robotics clubs nationwide. Want to get involved with the 2024 Smartforce Student Summit? Contact Catherine “Cat” Ross, AMT’s director of community engagement, at cross@AMTonline.org. SMARTFORCE