MT Magazine November/December 2024

THE ECONOMICS OF AUTOMATION SKILLS GAP. REMOTE WORK. RETIRING BOOMERS. ELEVATED DEMAND. CAN INVESTING IN AUTOMATION PAY OFF?

MAKING THE MOST OF YOUR PEOPLE — AND EQUIPMENT by Douglas K. Woods | 01 IMTS 2024: WHERE TECHNOLOGY AND COMMUNITY INSPIRED THE EXTRAORDINARY by Michelle Edmonson | 21

HIT OR MYTH: AUTOMATION AND TOMORROW’S WORKFORCE by Christopher Chidzik | 25

by Gary S. Vasilash | 13

AN

PUBLICATION

NOVEMBER/DECEMBER 2024 THE INDUSTRY OUTLOOK ISSUE VOLUME 3 | ISSUE 6

IS

MANUFACTURING TECHNOLOGY

1,100+ Members in the Manufacturing Technology Community

Our members make, sell, service, and supportU.S. manufacturing technology in a global market. We advance the industry byfacilitating t he adoption of transformative technologies,producingcommunity events,promotingMT standards,supporting international business growth, and enhancing industry knowledge. Make the most out of your AMT membership. Reach out us at membership@AMTonline.org. f t i t h l i l b l k t W d Our members make sell service and support U S

MT MANUFACTURING TECHNOLOGY

NOVEMBER/DECEMBER 2024

3

Masthead

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

Executive Team Douglas K. Woods President dwoods@AMTonline.org Travis Egan Chief Revenue Officer tegan@AMTonline.org Peter Eelman Chief Experience Officer peelman@AMTonline.org Becky Stahl Chief Financial Officer bstahl@AMTonline.org

Membership & Sales Bill Herman VP, Sales & Membership bherman@AMTonline.org Technology Benjamin Moses Senior Director, Technology bmoses@AMTonline.org Intelligence Kevin Bowers VP, Research kbowers@AMTonline.org Smartforce Catherine Ross Director, Community Engagement cross@AMTonline.org

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

Kathy Webster 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 Peter R. Eelman

Chief Experience Officer peelman@AMTonline.org

M

E

Michelle Edmonson VP, Exhibitions medmonson@AMTonline.org

O

C

E

B

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

JOIN AMT

Mark Kennedy Senior Director, Exhibitor Services mkennedy@AMTonline.org

R

E

B

A

M

M

E

AMT – The Association For Manufacturing Technology 7901 Jones Branch Dr. Suite 900, McLean, VA 22102-3316 Tel: 703-893-2900 | Fax: 703-893-1151

MT MANUFACTURING TECHNOLOGY

NOVEMBER/DECEMBER 2024

5

Table of Contents

Click See what’s trending on AMTonline.org

07

LACK OF AWARENESS

Manufacturing Matters Get details on the latest industry news

09

IMPORT COMPETITION

AMT Upcoming Events Important manufacturing technology dates and events to bookmark

11

The Economics of Automation by Gary S. Vasilash

13

IMTS 2024: Where Technology and Community Inspired the Extraordinary by Michelle Edmonson The Big Picture Productivity Path: How Increases in Automation Support Manufacturing Productivity Under Construction: The Next-Generation Workforce by Peter Eelman Featuring the Future: IMTS+ Main Stage by Bonnie Gurney

17

18

21

22

Hit or Myth: Automation and Tomorrow's Workforce by Chris Chidzik

25

New Metal by Stephen LaMarca

30

Manufacturing Technology Orders and a Rare Soft Landing by Chris Chidzik

32

COVER DESIGN Jacob McCloskey | Senior Graphic Designer

INFOGRAPHIC DESIGN Productivity Path: How Increases in Automation Support Manufacturing Productivity Tiffany Kim | Graphic Designer

MT Manufacturing Technology (ISSN # 2836-2896), November/December 2024, Issue 6, 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.

To manage your subscription, contact Chris Downs at cmdowns@AMTonline.org.

My TechSpex lets me narrow down my machine tool search based on criteria such as brand, price range, location and specific technical specifications. That means I find the precise machinery I need, tailored to my unique requirements, without wasting my time on irrelevant options. “ ”  “Goes way beyond just basic specs. I’m hooked!” SEARCH & EXPLORE Investigate more than 600 machine tool brands and 7,500 machine models in one premier database. COMPARE & SHARE Save your search data and collaborate with your team members inside the tool. CLICK & COLLECT Request quotes with one click from one or more sellers for simplified decision making.

The Machine Tool Search Engine TechSpex, the world’s largest online database of new machine tools, introduces its refreshed and modern user-friendly interface. Browse by machine attributes including type , size , spindle speed , horsepower , performance metrics , geographical location and more! You’ll find all the important details about machine tool builders and distributors. Set up your free account today and revolutionize how you discover the tools and supplies your shop needs to thrive.

Machine Type:

Specifications: # of Main Spindles: Spindle Direction: Mill/Drill Function:

Machining Center Drill/Tap Boring Mill Milling Machine

techspex.com Your Search for Machine Tools Starts Here ›

ADVANCED SEARCHES | COMPREHENSIVE EQUIPMENT PROFILES EXPERT INSIGHTS & ANALYSIS | SUPPLIER DIRECTORY BUYING GUIDES & WHITEPAPERS | VIRTUAL MACHINE TOOL TOURS | NEW PRODUCT NEWSLETTERS

CLICK

NOVEMBER/DECEMBER 2024

7

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

How Capital Will Influence the Future of Manufacturing

The growth of the manufacturing market is constrained by the availability of capital to fund technologies and scale the companies implementing them. Investors face challenges such as geopolitical concerns, fluctuating interest rates, and the need for adaptable funding models to address these evolving issues. Learn more about these complexities – and how to overcome them – in this IMTS+ Main Stage presentation from IMTS 2024. IMTS.com/Capital-Influence

September 2024 Manufacturing Technology Orders Jump as IMTS Returns Orders of manufacturing technology, measured by the U.S. Manufacturing Technology Orders report published by AMT, totaled $450.6 million in September 2024, an increase of 24% from August 2024 and 14.6% over September 2023 orders. Year-to-date orders reached $3.35 billion, a decline of 7.7% compared to the first three quarters of 2023. Further interest rate cuts and September's IMTS have positioned the industry to end the year strong. AMTonline.org/article/USMTO-0924

The Music of Manufacturing Manufacturing workforce development hit a high note with rock band Metallica's All Within My Hands foundation, which launched their sixth year supporting colleges across the country. This IMTS+ Main Stage session showcased the efforts of colleges to quickly and affordably train industry-relevant talent to meet emerging manufacturing needs. They are making heavy metal every day. IMTS.com/Music-of-Manufacturing

Tech Trends From girl scout cookies and furry friends to material science and technology innovations, the “Tech Trends” podcast team blends an enthusiasm for manufacturing and technology with a genuine rapport that keeps audiences engaged and entertained. Tune in to learn a little and laugh a lot. We guarantee you’ve never seen manufacturing news covered like this. AMTonline.org/products/techtrends-podcast

ATLANTA

THE WORLD’S PREMIER INDUSTRIAL AUTOMATION TRADE SHOW BRAND IS COMING TO THE U.S.A.

Transforming Industrial Manufacturing Through Automation Explore innovation at SPS Atlanta for smart production solutions

SCAN TO LEARN MORE

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

MANUFACTURING MATTERS

NOVEMBER/DECEMBER 2024

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

Who Cares About Material Science Innovation? Several industries are leading the charge to innovate new materials. These materials are harder, more thermally resistant, corrosion resistant, and more abrasion-resistant. OEMs benefit from these materials, which enable lighter, more efficient designs, increased power, and better reliability. As a result, manufacturers will be tasked with processing these materials faster throughout the entire manufacturing ecosystem. The underlying question they will face is: Do I have the confidence and speed needed to do it correctly? By the time the drawing package and raw material arrive at tier-three suppliers for refining, there is not much time to iterate on their manufacturing process to achieve a stable process. Manufacturers will need a reliable starting point for forming, welding, material removal, and additive manufacturing. The need for a technical manufacturing dataset to support the physical raw material will grow to aid in de-risking new materials.

INTELLIGENCE

The Economics of Automation Automation is emerging as a crucial solution to the manufacturing industry's workforce challenges. As skilled workers become scarce and expensive, companies are turning to automation to fill the gap. The aging workforce, coupled with younger generations' preference for workplace flexibility, is driving this trend. Automation not only addresses labor shortages but also boosts productivity and profitability. Top-performing shops utilizing automation achieve higher capacity utilization and profit margins compared to their peers. While historically limited to large companies, advancements in technology have made automation more accessible to smaller operations. As the industry faces potential shortages of up to 3.8 million jobs between 2024 and 2033, automation offers a way to attract younger workers and retain existing talent by providing opportunities for skill development in future-oriented roles.

SMARTFORCE Smartforce Outlook: Shaping the Future Workforce With AI

Artificial intelligence is transforming the skills gap challenge in manufacturing into an opportunity for growth. Advanced AI powered training tools and simulations provide hands-on learning experiences, making it easier for workers to gain practical skills remotely or on the job. Educational programs now integrate AI technology to offer personalized learning paths, ensuring that students and professionals gain the competencies most in demand. AI is also reshaping roles within manufacturing, shifting the focus from repetitive tasks to higher-value, tech-centric roles like programming, system integration, and data analysis. As AI enhances these training tools and education opportunities, it equips the workforce with the skills needed to thrive in a more automated and interconnected manufacturing environment, bridging the gap more effectively than ever before.

MANUFACTURING MATTERS

THE INDUSTRY OUTLOOK ISSUE

10

ADVOCACY

Are Major Tax Increases on the Horizon? The Department of Commerce’s Bureau of Industry and Security introduced new global export controls on four advanced technologies:

• Additive Manufacturing Items • Advanced Semiconductor Manufacturing Equipment • Quantum Computing Items • Gate-All-Around Field-Effect Transistor Technology

Exports that fall under these categories to countries participating in the Wassenaar Arrangement are generally presumed to be approved, with the exceptions of Malta, Russia, and Ukraine. Conversely, exports to nations deemed a national security concern, such as Albania, Armenia, Belarus, Cambodia, Cuba, China, Iraq, North Korea, and Russia, are typically denied. For further details, please visit BIS.gov. The U.S. Environmental Protection Agency issued a direct final rule postponing the reporting period for per- and polyfluoroalkyl substances (PFAS) under the Toxic Substances Control Act to July 11, 2025. The extension shifts the original start date from Nov. 12, 2024. Companies required to report PFAS data now have until Jan. 22, 2026, to fulfill their obligations. For additional information, visit epa.gov.

INTERNATIONAL

Data Drives Efficiency and Resilience Manufacturing has long stood out as the leading sector in terms of data generation. Utilizing this digital gold mine is crucial for a healthy outlook in global manufacturing. For years, the industry eagerly anticipated the potential of digital twin technology for predictive maintenance and performance monitoring. Today, this technology has become almost fundamental to modern manufacturing plant management by reducing maintenance costs, decreasing downtime, and increasing overall equipment effectiveness. Supply chain restructuring is another significant trend in the global manufacturing landscape, driven by the need to reduce risk and increase resilience. By adopting and implementing digital tools to improve visibility and traceability across the entire value chain, manufacturers can reduce dependence on single suppliers or geographic regions.

The key, in both cases, of course is the data. Without it, there is nothing but empty promise.

WHAT’S HAPPENING

NOVEMBER/DECEMBER 2024

11

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

UP NEXT

INTELLIGENCE

2025 AMT Winter Economic Forum January 24, 2025 | Cincinnati, Ohio Join live or virtually for Oxford Economics’ updated forecast for manufacturing technology and the wider economy. AMT will also recap IMTS 2024, provide a variety of industry insights, and discuss what you and your company need to know to prepare for 2025.

TECHNOLOGY

DISTRIBUTION SUMMIT

MFG 2025 February 19-21, 2025 | San Antonio, Texas

The D25 Summit November 18-19, 2025 | Carmel, Indiana

Remember the manufacturing in San Antonio, Texas! At MFG 2025, visionaries, experts, and leaders from across the world of manufacturing technology will blow into the Alamo City for exclusive networking opportunities, educational sessions, and a whole lot of fun. See you there, pardner!

Training. Tactics. Territories. The only conference in the United States programmed specifically for manufacturing technology distributors provides attendees with sales insights from the industry’s front lines. Tap into the most influential sales network in the nation.

SMART PRODUCTION SOLUTIONS

IMTS

SPS Atlanta September 16-18, 2025 | Atlanta, Georgia

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

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. To learn more, please visit SPS-americas.us.messefrankfurt.com/usa/en.html.

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. Learn more at IMTS.com.

INTELLIGENCE

MTForecast 2025 October 15-17, 2025 | Chicago, Illinois

MTForecast breaks down the latest industry news, outlooks, and trends. Industry leaders, executives, and key decision makers connect and learn better business strategies through customer industry insights, economic forecasting, and deep dives into market data.

E !

E R

U T H

O

Y

S

E E

THE INDUSTRY OUTLOOK ISSUE

12

LACK OF AWARENESS

IMPORT COMPETITION

The Economics of Automation With skilled workers in short supply, fewer young people interested in on-site work, boomers retiring, and demand remaining elevated, manufacturers could invest in automation for multiple returns. According to recent research from consulting firm McKinsey & Co., not only is it tough to find talent for manufacturing jobs, but it is becoming even more expensive – which may validate what you’ve probably been experiencing. And it isn’t going to get any better. The consultancy reports that when it comes to skilled workers in manufacturing, “from 2022 to 2032, annual hiring is expected to be more than 20 times the projected annual increase in net new jobs.” Older workers are rapidly retiring from the workforce, and, according to McKinsey’s research, that issue is compounded because Generation Z (those born between 1997 and 2012) and many millennials (1981-1996) “prioritize workplace flexibility,” noting that “the on-site and highly structured nature of … manufacturing jobs typically doesn’t map to these preferences.” Or, said another way: People can’t work from home when it comes to manufacturing jobs. McKinsey found that, overall, acquiring and training skilled workers is going to cost companies in the United States some serious money – to the order of $5.3 billion a year. BY GARY S. VASILASH CONTRIBUTING EDITOR

FEATURE STORY

THE INDUSTRY OUTLOOK ISSUE

14

demographic change—corresponding to an increasing ratio of older to middle-aged workers—is associated with greater adoption of robots and other automation technologies across countries.”

A Solid Solution An important solution to the problem, and one that is certainly able to shoulder a great deal of the burden of finding, training, and keeping good employees, is becoming clearer: Automation. Automation enables companies to focus on their good people, allowing them to perform jobs that may be more engaging to them, offloading some of the more repetitive tasks to a robot. Engaged employees stick around. Those who are just punching the clock are simply doing just that. A Generational Shift Here’s a rather frightening fact: According to the U.S. Census Bureau, by 2030, every member of the baby-boom generation – which accounts for about a fifth of the overall population – will be 65 or order. Which could have a big impact on your staffing situation in the not-too-distant future. But between an aging workforce and automation lies the opportunity to grow the use of robots. When it comes to robot density – the number of robots per 10,000 employees – the United States has a long way to go compared to other countries, suggests Ian Stringer, vice president of data strategy at AMT – The Association For Manufacturing Technology. In South Korea, there are 1,012 robots per 10,000 employees, the highest density in the world. The United States is 10th, with 285 robots per 10,000 employees – just edging out Slovenia, which has 284. Stringer cites research conducted by MIT and the National Bureau of Economic Research that shows a correlation between an aging population and the deployment of robots, which could be good news for the United States on a national scale. In other words, South Korea, Germany, Japan, and other countries may have more robots per 10,000 employees, but that’s because their population is aging. However, as Daron Acemoglu and Pascual Restrepo, authors of “Demographics and Automation,” write: “We argue theoretically and document empirically that aging leads to greater (industrial) automation, and in particular, to more intensive use and development of robots. Using US data, we document that

Not Getting Any Younger According to 2023 numbers from the U.S. Bureau of Labor Statistics (BLS), in durable goods manufacturing, which has 10,065,000 total employees, most employees are 35 years old or older:

• 35-44: 2,155,000 • 45-54: 2,278,000 • 55-64: 2,057,000 • 65 and up: 566,000

That’s 7,056,000 employees in durable goods manufacturing who are in the middle-aged and above cohort – roughly 70% of the entire sector – which shows that there are evidently greater opportunities for more automation deployments. So, at the level of an individual company, if there is a significant number of middle-aged workers, then there is a trend toward using more automation. Which means that if a company with that demographic cohort chooses not to use automation, it is likely to fall behind competitors that do. And if we go back to the the relative disinterest of Gen Z and many millennials in working from, well, work, then there is another way to look at the BLS numbers of people in manufacturing, which also makes automation make sense: While that is the number of people presently employed – a total of 5,165,000 – (1) there is apparently some increased degree of disinterest, particularly post-COVID, in staying at a job and (2) a growing demand for employees. Which goes to the point of keeping the solid employees you have on staff and increasing automation – because the number of people getting older isn’t declining. Take It From the Top What’s more, Stringer points out that there are advantages to operations using automation, and he references the Modern Machine Shop Top Shops survey conducted by Gardner Business Media (GBM). Top Shops is an annual benchmarking survey, explains Dave Necessary, executive vice president, development, GBM. The current study is the 13th. Some 3,500 shops have participated. What Top Shops does is calculate the highest performers compared with other operations. The results are startling. For example, while top shops average 80% capacity utilization, other shops average just 67%. Top shops achieve a 15% profit margin. Other shops? Five percent. • 16-19: 133,000 • 20-24: 722,000 • 25-34: 2,155,000 • 35-44: 2,155,000

robots substitute for middle-aged workers (those between the ages of 36 and 55). We then show that

MT MANUFACTURING TECHNOLOGY

NOVEMBER/DECEMBER 2024

15

Necessary points out that the use of automation is not something indicative of all top shops, and that some other shops are deploying automation like collaborative robots (cobots). Still, the overall numbers in several categories indicate that automation is a salient characteristic of the shops that are able to achieve those solid returns and keep their operations consistently running. Fifty-one percent of top shops use robotic part loading, 16% more than other shops. The delta between the top shops and the others when it comes to lights-out operation is even greater: 68% to 48%. The point is: Automation can measurably impact the productivity of a shop – and its profitability. Clearly important reasons to use it. But there is some trepidation. Automate Now Which brings us to Joe Campbell, a consultant who has been involved in robotics and automation for some 35 years. He’s worked with SCARA robots, 6-axis robots, and cobots. “Twenty years ago, the only companies that were applying robots were big ones,” Campbell says. The reason why that was the case is simple: “They were too complicated and too expensive.” But that has significantly changed in terms of the technology – as has the need for the technology. “We found a lot of companies that couldn’t run their machines because they couldn’t get labor to load and unload them. So, you had a half-million dollar machine tool sitting idle because you couldn’t get production coming off of it,” he says. So, the shops that put automation on the equipment were able to “pick up the top line sales and bottom-line margin from the production of the machine.” Or, he says, other operations may want to expand capacity but are, in effect, “landlocked” – they have no ability to physically expand the shop. While the lack of available labor is certainly an important consideration, Campbell says that an important focus today is not just on finding or keeping the right people but on getting productivity up. “If you automate, you can get a significant boost in raw capacity, raw output.” Historically robots and other automation have proliferated in high-volume, low-mix operations like automotive. But Campbell points out that in an increasing number of cases, high-mix, low-volume, more customization, and shorter product life-cycles all lend themselves to being addressed by automation that can be quickly deployed – and redeployed, like cobots. Downtime is expensive. Arguably even unaffordable nowadays.

Back to the Start According to a study released earlier this year by consultancy Deloitte and The Manufacturing Institute (MI), the U.S. manufacturing industry could need to fill as many as a net 3.8 million jobs between 2024 and 2033. Of those jobs, the ones specifically related to durable goods manufacturing include machinists and welders. One finding should give all manufacturing managers pause: Employees are 2.7 times less likely to leave an organization during the next 12 months if they think they can acquire skills that will be necessary for the future. In other words, if an employee is doing a job that could be readily automated, i.e., where there’s no future for them, then they’re going to be more likely to leave. Deloitte and MI calculate that of the 3.8 million job openings, 1.9 million could go unfilled unless manufacturers address the skills and applicant gaps. Campbell has a succinct observation about how this can be addressed by manufacturers: “Automation makes a facility a whole lot more attractive to a younger generation, so you can hire some people.” Resolving this probably won’t be an insurmountable issue for top shops. But as for the other shops …

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

SAVE THE DATE FOR

SEPTEMBER 14 – 19, 2026 MCCORMICK PLACE, CHICAGO

IMTS, the largest manufacturing technology trade show 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

IMTS

NOVEMBER/DECEMBER 2024

17

IMTS 2024: Where Technology and Community Inspired the Extraordinary BY MICHELLE EDMONSON VICE PRESIDENT, EXHIBITIONS

IMTS 2024 is a powerful reminder that when we come together as a community, we unlock the extraordinary. The true magic of IMTS lies not just in its impressive scale but in the people behind it – your contributions helped create an atmosphere of discovery, inspiration, and a sense of belonging. Thank you. As we reflect on the vibrancy of IMTS 2024 and look ahead to 2025, I’d like to share some early insights from the show. Inspiration and Automation Everywhere IMTS 2024 brought the manufacturing technology community together for six exhilarating days filled with opportunities to explore new solutions and build meaningful connections. A key trend immediately apparent throughout the show floor was the omnipresence of robotics and automation technology across all four buildings – and especially in The Automation Sector, accelerated by SPS – Smart Production Solutions, which launched in the North Building. At AMT’s Emerging Technology Center (ETC), seasoned technologists showcased innovations from today and tomorrow. Highlights included the U.S. Navy’s BlueForge Alliance, which shared key industry resources developed to strengthen domestic submarine manufacturing capabilities, and a convergent manufacturing cell platform developed by Oak Ridge National Laboratory showcasing innovative ways of integrating new and traditional technologies to optimize performance and energy use. A crowd favorite was Apollo, the humanoid robot from Apptronik, capable of automating production tasks through rapid neuroprogramming with a human operator. This, combined with the presence of our vibrant community of exhibitors, delivered IMTS 2024’s promise: to create a dynamic marketplace where buyers and sellers can connect, explore, and learn. IMTS 2024 by the Numbers IMTS continues to be the premier event for driving innovation and advancing the manufacturing technology industry. This year, we welcomed 89,020 registrants from 110 countries, spanning over 1.2 million square feet of exhibit space and showcasing 1,737 exhibitors across 10 manufacturing sectors. Our interim postshow survey results reflect the impact of IMTS 2024: • 93% discovered new products or ideas. • 85% attended with specific goals in mind. • 87% said their goals were met. • 76% bought – or plan to buy – products from IMTS exhibitors. • 69% of IMTS visitors plan to purchase from IMTS exhibitors within a year. • A record number of women attended the show.

These numbers underscore our mission of helping the industry connect and achieve business objectives.

Supporting the Backbone of Manufacturing IMTS remains a key destination for machine shops and contract manufacturers. Our data shows that 73% of businesses attending IMTS 2024 employed fewer than 100 people. To support these small businesses, we curated 11 conferences featuring 643 educational sessions, covering topics from 3D measurement for quality control to enhancing productivity with AI and automation. With a 53% year-over-year growth in conference registrations, it's clear that this community views IMTS as an indispensable resource. Aerospace and defense also had a strong presence, emphasizing IMTS’ role in supporting the national security sector. Notably, 100% of the top 25 U.S. aerospace and defense companies – including Boeing, Northrop Grumman, and Lockheed Martin – attended, along with representatives from the Army, Navy, Air Force, and the Defense Logistics Agency. This highlights IMTS’ pivotal position in facilitating connections for a vital sector. We also see that the North American automotive industry relies on IMTS to discover new technologies. This year, the show attracted over 3,000 organizations, including leading automotive OEMs and tier-one suppliers. Our data shows that these companies are interested in identifying new solutions in automation, tooling, machining centers, turning and lathes, metrology, and more. Supporting the Backbone of Manufacturing As we look to 2025, we’re excited by the success of the Automation Sector, accelerated by SPS – Smart Production Solutions at the show. To further explore these innovations and help your business grow, mark your calendars for SPS Atlanta, taking place Sept. 16-18 at the Georgia World Congress Center. Make sure to save the date for IMTS 2026, which will return to McCormick Place in Chicago on Sept. 14-19, 2026. In the meantime, visit IMTS+, the manufacturing technology and community resource destination for our industry, at IMTS. com, where you’ll also be able to revisit all the highlights and wonderful memories of this year’s show. IMTS 2024 was a remarkable success, but the journey continues. We’re thrilled to embark on this path with you and can’t wait to see where it leads.

If you have any questions about this information, please contact Michelle at medmonson@IMTS.com.

How Increases in Automation Support Manufacturing Productiv Automation Supp How Increases in Automation Support Manufacturing Productivity uring Productivity How Increases in

Real Personal Consumption Expenditure for Durable Goods (Annualized)

$1,100 $1,300 $1,500 $1,700 $1,900 $2,100 $2,300 $2,500

Demand for nd for Deman manufactured goods exploded following 2020.

$500 $700 $900

1/1/07

7/1/08

4/1/09

1/1/10

7/1/11

4/1/12

1/1/13 10/1/13 Value (Billions)

7/1/14

4/1/15

1/1/16

7/1/17

4/1/18

1/1/19

7/1/20

4/1/21

1/1/22

7/1/23

4/1/24

10/1/07

10/1/10

10/1/16

10/1/19

10/1/22

Post-GFC Trend

Index of Average Order Value and Producer Price Index for Machine Tools (January 2019 = 100)

160

140

120

100

80

ugh workers to Without enough wo o ll manufactu open positions, man sitions, cturers are turning to automatio ing to au mation. Without enough workers to ll open positions, manufacturers are turning to automation.

60

40

20

0

1/1/98

9/1/99

7/1/00

5/1/01

3/1/02

1/1/03

9/1/04

7/1/05

5/1/06

3/1/07

1/1/08

9/1/09

7/1/10

5/1/11

3/1/12

1/1/13

9/1/14

7/1/15

5/1/16 PPI

3/1/17

1/1/18

9/1/19

7/1/20

5/1/21

3/1/22

1/1/23

9/1/24

11/1/98

11/1/03

11/1/08 Average Order Vlaue

11/1/13

11/1/18

11/1/23

The increase in demand for manufactured goods after 2020 prompted an increase in production that brought manufacturing employment above its pre-recessionary peak for the first time since 1979, although growth has since hit a plateau. Despite U.S. employment growth leveling o, job openings in manufacturing remain at elevated levels, indicating a labor shortfall. To overcome this, manufacturers have turned to automation. These increases in employment and automation seem to have reversed the previous trend of declining manufacturing productivity.

Manufacturing Employment in the United States (in Thousands)

18,000

Employment in manufacturing increased i manufacturing increased to meet heightened dema ghtened de meet heightened demand. emand

16,000

14,000

12,000

10,000

8,000

6,000

2001-01-01

2001-08-01

2002-03-01

2002-10-01

2003-05-01

2003-12-01

2004-07-01

2005-02-01

2005-09-01

2006-04-01

2006-11-01

2007-06-01

2008-01-01

2008-08-01 All Manufacturing 2009-03-01 2009-10-01

2010-05-01

2010-12-01

2011-07-01

2012-02-01

2012-09-01

2013-04-01

2013-11-01

2014-06-01

2015-01-01 Durable Goods 2015-08-01 2016-03-01

2016-10-01

2017-05-01

2017-12-01

2018-07-01

2019-02-01

2019-09-01

2020-04-01

2020-11-01

2021-06-01

2022-01-01

2022-08-01

2023-03-01

2023-10-01

2024-05-01

Manufacturing Labor Productivity

100 102 104 106

Not only are employment and automation increasin and automation increasing,

90 92 94 96 98

but manufacturing t productivity is too. vity is too.

1/1/07

9/1/07

5/1/08

1/1/09

9/1/09

5/1/10

1/1/11

9/1/11

5/1/12

1/1/13

9/1/13

5/1/14

1/1/15

9/1/15

5/1/16

1/1/17

9/1/17

5/1/18

1/1/19

9/1/19

5/1/20

1/1/21

9/1/21

5/1/22

1/1/23

9/1/23

OKUMA • SMW AUTOBLOK • JTEKT • MAZAK • OKUMA • MW AUTOBLOK • JTEKT • MAZAK • OKUMA • SMW AUTOBLOK • JTEKT • MAZAK • OKUMA • SMW AUTOBLOK JTEKT • MAZAK • OKUMA • SMW AUTOBLOK • JTEKT • MAZAK • OKUMA • SMW AUTOBLOK • JTEKT • MAZAK • OKUMA • SMW AUTOBLOK • JTEKT • MAZAK • OKUMA • MW AUTOBLOK • JTEKT • MAZAK • OKUMA • SMW AUTOBLOK • JTEKT • MAZAK • OKUMA • SMW AUTOBLOK JTEKT • MAZAK • OKUMA • SMW AUTOBLOK • JTEKT • MAZAK • OKUMA • SMW AUTOBLOK • JTEKT • MAZAK • OKUMA • SMW AUTOBLOK • JTEKT • MAZAK • OKUMA • MW AUTOBLOK • JTEKT • MAZAK • OKUMA • SMW AUTOBLOK • JTEKT • MAZAK • OKUMA • SMW AUTOBLOK JTEKT • MAZAK • OKUMA • SMW AUTOBLOK • JTEKT • MAZAK • OKUMA • SMW AUTOBLOK • JTEKT • MAZAK • OKUMA • SMW AUTOBLOK • JTEKT • MAZAK • OKUMA • MW AUTOBLOK • JTEKT • MAZAK • OKUMA • SMW AUTOBLOK • JTEKT • MAZAK • OKUMA • SMW AUTOBLOK JTEKT • MAZAK • OKUMA • SMW AUTOBLOK • JTEKT • MAZAK • OKUMA • SMW AUTOBLOK • JTEKT • MAZAK • OKUMA • SMW AUTOBLOK • JTEKT • MAZAK • OKUMA • MW AUTOBLOK • JTEKT • MAZAK • OKUMA • SMW AUTOBLOK • JTEKT • MAZAK • OKUMA • SMW AUTOBLOK JTEKT • MAZAK • OKUMA • SMW AUTOBLOK • JTEKT • MAZAK • OKUMA • SMW AUTOBLOK • JTEKT • MAZAK • OKUMA • SMW AUTOBLOK • JTEKT • MAZAK • OKUMA • MW AUTOBLOK • JTEKT • MAZAK • OKUMA • SMW

THE INDUSTRY OUTLOOK ISSUE

IMTS

21

Under Construction: The Next-Generation Workforce BY PETER EELMAN CHIEF EXPERIENCE OFFICER

Train Getting young people excited and providing vital funds to schools is imperative, but we also have to match novice workers with quality training programs to meet the growing demand for skilled workers. Industry is answering the call with a return to apprenticeship programs. While they remained prevalent in much of Europe, apprenticeships have declined drastically in the United States. The programs are now seeing a resurgence as they prove to be a successful approach to addressing workforce demands. Three AMT member companies are achieving impressive success with in-house apprenticeship programs. AMT member United Grinding started an apprenticeship program in early 2023. Apprentices attend Sinclair College two days a week, then spend three days on the job. They graduate with an associate degree in mechatronics, then spend another two years going from department to department at United Grinding, mentoring under the company's application engineers. Schunk’s apprenticeship program at its U.S. headquarters in Morrisville, North Carolina, was started eight years ago. The first graduate remains at the company, as do six others who have gone through the program. The latest three graduates are working with automation solutions, including collaborative robots. As with United Grinding, Schunk offers four-year apprenticeships that lead to an associate degree, in this case from Wake Tech. Started in 1995, Okuma’s apprenticeship program also includes collaborating with a technical college to educate service technicians in its distributor network. Reflecting distributor requests for more skilled workers, Okuma now has 38 apprentices in its program. Read more about these programs at AMTonline.org/article/ apprenticeships. Using tools ranging from interactive displays of eye-popping technology to workplace training and mentoring, industry leaders are working to show the next generation that manufacturing is full of high-tech, rewarding, well-paid positions – and the opportunities are endless. Steps in the Right Direction I’m proud that our industry is actively addressing these core elements: engaging the next generation, fundraising for vital education, and training skilled workers. Together, we’re fostering a thriving workforce for the future. With our collective efforts, I’m confident we’ll continue to empower communities and ensure manufacturing remains strong for years to come.

How do you build the workforce of the future? With action. IMTS, AMT – The Association For Manufacturing Technology, and our members and partners are helping to prepare the next generation for vital manufacturing positions through concerted efforts to engage, fundraise, and train. According to a recent report by Deloitte, the U.S. manufacturing industry could need to fill as many as 3.8 million vacant jobs between 2024 and 2033. Preparing young people to fill in-demand positions in the manufacturing sector will strengthen our economy, industry, and individual communities. Engage Actions speak far louder than words when you are talking to teens and young adults. Don’t tell them you have awesome jobs; show them. That’s exactly what IMTS and its partners did during the Smartforce Student Summit at IMTS 2024. The Summit boasted more than 14,000 student attendees over the course of six days and featured exhibits by more than 70 industry-leading companies, schools, and organizations, including NASA. Students and educators learned about careers in advanced manufacturing and interacted with technologies like robotics, CNC machining, 3D printing, metrology, digital twins, CAD/ CAM design, and mechatronics. From augmented and virtual reality experiences that put students on the virtual shop floor, to speed competitions with robots, to operating a desktop mill, students were engaged in the manufacturing classroom of the future. Fundraise To build a workforce that is both large and well-trained, manufacturing industry leaders will need to do more than just engage. It is also important that we fundraise to provide support for smaller programs that are providing STEM opportunities for students in urban and rural communities. During IMTS 2024, more than 560 participants laced up their sneakers to participate in the Miles for Manufacturing (M4M) 5K Run/Walk, the signature fundraiser of AMT and our partners. This year, which marked the 10th anniversary of the fundraiser, M4M raised more than $47,000 – a record high – to support 17 organizations focused on STEM education. Over the past decade, runners from every corner of the manufacturing community have helped to raise more than $240,000 to support education programs in advanced manufacturing and STEM throughout the country. M4M

is community fundraising at its best, with current manufacturing professionals supporting the next

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

generation as they strive to gain critical skills and fill essential roles in the industry.

IMTS+

THE INDUSTRY OUTLOOK ISSUE

22

Featuring the Future: IMTS+ Main Stage Highlights from the IMTS+ Main Stage at IMTS 2024. BY BONNIE GURNEY VICE PRESIDENT, STRATEGIC PARTNERSHIPS & INDUSTRY RELATIONS

The Workforce of the Future Companies tell me they wish that engineers had hands-on skills, and they wish that technicians had analytical skills. There is a gap between the technicians and the engineers. I am proposing a new type of workforce to help move forward advanced manufacturing, and I am calling it the technologist – a technician-engineer hybrid who is on the shop floor to integrate advanced technologies. – Dr. John Liu Director and Principal Investigator MIT Learning Engineering and Practice Group Watch this session at IMTS.com/Technologist. Partnering for the Future The MDF (Manufacturing Demonstration Facility) at ORNL is really embracing industry partnerships. We have 280 different partnerships to date. Industry is not only giving us problems to solve, but they are also a part of the solution. We work at the speed of industry and are focused on being fast and agile with our products and solutions.

If there is a race to the future, manufacturing is winning. Throughout IMTS 2024, visitors found new groundbreaking machines, process improvements, software innovations, automation solutions, and advancements in additive manufacturing and robotics, along with lots of peers eager to talk technology. That focus on the future was also featured on the IMTS+ Main Stage. From industry icons to next-generation innovators, presenters on the IMTS+ Main Stage shared a common conviction that the future of the manufacturing industry is limited only by imagination – and there is no shortage of that. Featured speakers also emphasized how technology is helping to democratize manufacturing by creating more opportunities for more trailblazers, entrepreneurs, and visionaries to compete and win. Here are a few highlights from four industry leaders who appeared on the IMTS+ Main Stage. A Global Future We are now entering an era where we'll see creators anywhere designing products being able to transmit those designs to a manufacturer. At Siemens, we believe that the future of manufacturing is global and open to all. We're looking for small and medium enterprises who want to be part of that network to be able to manufacture what's needed closer to the point of demand using technologies like the digital twin.

– Ryan Dehoff Director Manufacturing Demonstration Facility Oak Ridge National Laboratory

Watch this session at IMTS.com/Convergent.

Watch the presentations, panels, and live shows featured on the IMTS+ Main Stage at IMTS 2024 at IMTS.com/MainStage. For more must-read manufacturing content from IMTS 2024, visit IMTS.com/Read.

– Barbara Humpton President and CEO Siemens USA

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

Watch this session at IMTS.com/Democratization.

Designing the Future We want to give the power back to the designers, the really talented ones, that people don’t know about. We want to help bring their pieces to fruition using 3D printing technology. – Alex Tholl CEO and Co-founder DIVE Design Watch this session at IMTS.com/IconicBrands.

2025 CHAPTER LEADERSHIP SUMMIT JANUARY 15-17, 2025 NEW ORLEANS, LOUISIANA

2025 NTMA CALENDAR OF EVENTS Please contact Kristen Hrusch, our Events Manager for more information and to register: Kristen Hrusch - Khrusch@ntma.org 216.264.2845 or visit www.ntma.org/upcoming -events www.ntma.org/events

MFG 2025 FEBRUARY 19-21, 2025 SAN ANTONIO, TEXAS

2025 INTERNATIONAL TECH TOUR MARCH 30-APRIL5, 2025 MILAN, ITALY

2025 EMERGING LEADERS CONFERENCE MAY 5-7, 2025 ORLANDO, FLORIDA

* Events Subject to Change*

2025 ENGAGE CONFERENCE OCTOBER 7-10, 2025 DETROIT, MICHIGAN

TECH TRENDS PODCAST

TUNE IN FOR THE LATEST DEVELOPMENTS ON TRANSFORMATIVE TECHNOLOGIES.

INDUSTRY MARKETS Aerospace, defense, watches, energy, and more. SUPPLY CHAIN Silicon shortages, gas pipelines, reinforcing supply chains from the ground up. TRANSFORMATIVE TECH Machine vision, augmented reality, artificial intelligence. ADDITIVE MANUFACTURING AM advancements impacting everything from food production to automotive. ROBOTICS AND AUTOMATION Industrial robots, cobots, and lights out manufacturing.

NOVEMBER/DECEMBER 2024

25

Hit or Myth: Automation and Tomorrow’s Workforce BY CHRIS CHIDZIK | PRINCIPAL ECONOMIST Political dramas like “The West Wing” and “House of Cards” are popular for their depictions of politicians and their staff as people motivated by some combination of idealism and Machiavellian ambition who develop and carry out elaborate schemes to serve those ends. While this makes for entertaining television, a running joke among those who have witnessed Washington in action is that reality is far closer to the comedy “Veep,” where events play out more in a fly-by-the-seat-of-your-pants kind of way. In a similar vein, popular depictions of automation point to dystopian futures populated with robots that hunt humans, or artificial intelligence-driven computers that bring about the destruction of humanity. The reality is probably closer to the episode of “I Love Lucy” where Lucy and Ethel were tasked with wrapping chocolates coming down a conveyor belt. While the work began simply and efficiently at a leisurely pace, the chocolates began to arrive at ever-increasing speed, hilariously outpacing the characters’ abilities and altering their relationship with the automation.

NOVEMBER/DECEMBER 2024

27

The post-COVID economy has seen several instances where trends broke from established assumptions, deviating from historical trajectories. Following an initial drop during the opening months of 2020, personal expenditures on durable goods moved to a higher plane of growth compared to the growth trend exhibited between the end of the financial crisis and the beginning of 2020. This elevated demand from consumers, along with elevated business investment and government spending on military and other manufactured goods, caused a fundamental shift in the manufacturing economy. This article will explore how demand for automation responded to these historic shifts, the impact on manufacturing jobs, and what impacts these shifting trends have had on productivity. Measuring Automation Defining automation can be more art than science. Because automation can be broadly defined as any improved or added technology that increases the efficiency of a manufacturing operation, its growth can be somewhat difficult to track over time because what was once considered “added” automation may now be considered a standard or common part of a machine. This ubiquity can be seen in the adoption of CNC controls, automatic tool changers, bar feeders, or even simultaneous 5-axis machining. The next steps down the automation path can be seen in technologies that have become more common in recent times, such as pallet pools, predictive maintenance, and even AI-enabled machining. It is easy to equate automation with robotics, but robotics represents only a portion of the technologies available that can add efficiencies to a manufacturing operation. Given the broad scope of automation, its adoption can’t be measured in just the number of robots added to shop floors each year. A more accurate measure would consider all added features and quality improvements of particular machines. We can approximate the adoption of automation by combining two different data series: the average value of orders as reported by the U.S. Manufacturing Technology Orders (USMTO) report, published by AMT – The Association For Manufacturing Technology; and the producer price index (PPI) for metal cutting machinery, published by the U.S. Bureau of Labor Statistics, which can be thought of as the rate of inflation for machine tools. The difference between the change in inflation and the change in average order value over time indicates the additional automation added to the base value of each machine order. One drawback to this methodology is that as once-novel features become more common, the prices to build and implement those features tend to fall as economies of scale begin to take hold. This makes the method less useful when comparing demand for automation across longer time spans, but it is still helpful in

comparing shorter-term demand. While it’s easy to think of automation as discrete components of an order, an integrated robot, a bar feeder, or some other added feature, it is important to remember that this methodology also captures the effects of demand shifting to higher-value machines with added features or complexities. Machines that perform more complex operations may not be traditionally considered automation, but they should be, as they reduce the time to complete a part that would otherwise require refixturing or being moved between two or more machines. By indexing both the PPI and the average order value to January 2019, we initially see a dip in the average value of orders below the PPI. It is important to remember that orders of manufacturing technology, measured by USMTO, experienced a larger decline between 2018 and 2019 than from 2019 to 2020. That environment of declining orders in 2019-2020 meant customers were generally ordering additional machinery only when capacity needs required it, a buying pattern typically associated with periods of declining average order values. In May 2020, average order value hit bottom and began a rapid ascent, surpassing the PPI by June 2021. Like inflation in the wider economy, prices of machine tools, measured by the PPI, continued to accelerate before tapering off at an elevated level. At the same time, average order values accelerated, averaging 6.7% per month above the rate of inflation, showing a sustained level of demand for automation. This methodology accounts for nearly $370 million in automation sold with machinery in 2023, a 73% increase from 2022. Through the first eight months of 2024, $230 million of order value can be attributed to automation, a 17% increase over the first eight months of 2023. Labor Markets Similar to how automation is popularly misunderstood, the effects of automation on labor demand in manufacturing is generally perceived as having an inverse correlation. Research has quantified the effects of globalization and technology changes in the 1990s on the availability of jobs in manufacturing. Manufacturing employment in the United States peaked in the summer of 1979 with nearly 20 million people employed in the sector. Since then, following each recession, manufacturing employment has failed to return to its previous peak as the economy recovered. That changed following the COVID recession in early 2020. Manufacturing employment declined rapidly like many other sectors during the recession, but it rebounded just as quickly as the service sector afterwards, surpassing the pre-pandemic peak by July 2022. Manufacturing employment continued to grow, eventually averaging out to about 110,000 jobs above the high prior to the COVID recession. Since achieving that heightened level, job growth in the manufacturing sector has been stagnant, averaging a monthly