MT Magazine November/December 2025

MAKING IT IN THE UNITED STATES YES, THERE ARE CHALLENGES IN MANUFACTURING. BUT THERE ARE PLENTY OF OPPORTUNITIES, TOO. by Gary Vasilash | 12

RISK AND REWARD; CHANGE AND RESILIENCE by Douglas K. Woods | 01

UNEARTHING A NEW GOLDEN AGE OF US MANUFACTURING by Chris Chidzik | 21 HOW CO-LINE AND HEXAGON ARE REDEFINING AMERICAN MANUFACTURING by Travis Egan | 30

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PUBLICATION

NOVEMBER/DECEMBER 2025 THE INDUSTRY OUTLOOK ISSUE VOLUME 4 | ISSUE 6

Five manufacturing megatrends reshaping sales by 2030 What’s changing between now and then – and how to prepare

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NOVEMBER/DECEMBER 2025

A VIEW FROM THE WOODS

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Risk and Reward; Change and Resilience To state the obvious: Market conditions are “trying.” It would have been easier – and less expensive – to stay home. But doing so would have left the organization vulnerable to the headwinds I knew would come.

While things will get sorted out, as they always seem to do, let’s face it: (1) We don’t know when that’s going to happen, and (2) some companies likely won’t make it until then. So, on one hand, there’s uncertainty; on the other, there’s the unknown. Neither is good for business. But this isn’t new. All industries, including ours (again, to state the obvious), have faced all manner of challenges, obstacles, and headwinds over the years. We can’t control international trade policies or new competition. Those exterior conditions will exist, like it or not. What we can control is how we address them. In tough times, some companies double down on the familiar, figuring that doing what they have the deepest capability to do will provide them with an advantage. But external conditions signal change – and change can’t be overcome by doing the same thing, only harder. In the early days of the automobile, an iron hand crank on the front of the car needed to be rotated to start it. Unfortunately, it tended to kick back and break bones. One could address this issue by getting stronger – keep cranking but more robustly. Or one could approach it like Charles Kettering and invent the electric self-starter. Kettering, whose inventions ranged from the electric cash register to incubators for premature infants, once said: “The world hates change, yet it is the only thing that has brought progress.” This was especially true in cases where people were willing to innovate rather than continue addressing challenges with existing methods. Indeed, challenging times can benefit those willing to take some calculated risks. When I ran an automation company, I knew headwinds were always on the horizon – I just never knew when they’d arrive. So, I worked to position our company to stand out when others would batten down their hatches. We invested in technologies to show customers – or potential customers – that we had the capacity they needed when their orders changed. We set up an extensive metrology operation to demonstrate how seriously we took quality and that our reports and numbers were dependable. We made sure we were different in beneficial ways. I spent a tremendous amount of time traveling to trade shows around the world, seeing what equipment and tooling were available. I toured other operations to see what companies were doing and what might be valuable to us.

I previously mentioned “calculated risks.” By learning and observing what other companies were doing, I gained insights into how to achieve a competitive advantage over our competitors. That is the “calculated” part. The “risk” was making an investment that might not pay off – if customers or prospects failed to see the advantage. But it was a matter of weighing the doing and the stasis. And when the winds blow hard, if you’re not moving forward, you’re being pushed back. There is another danger associated with addressing change. Someone will do something risky. But they do it. Once. That may be laudable in the moment, especially if it’s successful; but the moment moves on, and the company stops doing it. There must be persistence. Another American inventor, Walter Shewhart of Bell Labs, who developed statistical process control and control charts, introduced the plan-do-check-act cycle. PDCA is iterative. Continuous improvement doesn’t happen once. You’ve got to keep at it. Similarly, people thinking they know everything is a problem. Technology is moving far too fast for anyone to imagine that what they learned at a seminar a couple years ago is sufficient. Like the PDCA cycle, learning never ends. Finally, there is the all-too-common belief that “good enough” is good enough. Doing what your competitors are doing – maybe a little better but still about the same – puts everyone into the same bucket. Unfortunately for everyone in this bucket, because everything is about equal, customers can exert serious price pressure. But if a company has capabilities that set it apart – the best people, the best equipment – price pressure can’t be applied as severely because customers recognize the difference. And while none of this stops change, at least it allows a company to remain resilient in the face of it.

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

NOVEMBER/DECEMBER 2025

MT MANUFACTURING TECHNOLOGY

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

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Technology Ryan Kelly VP, Technology rkelly@AMTonline.org Intelligence Kevin Bowers VP, Research kbowers@AMTonline.org Smartforce Catherine Ross Director, Community Engagement cross@AMTonline.org Advocacy Amber Thomas VP, Advocacy athomas@AMTonline.org International Ed Christopher VP, Global Services echristopher@AMTonline.org Sales Mike DiFranco VP, Sales mdifranco@AMTonline.org Membership Bill Herman VP, Membership bherman@AMTonline.org

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

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

Tiffany Kim Graphic Designer tkim@AMTonline.org

Hailey Sarnecki Graphic Designer hsarnecki@AMTonline.org

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Make the Most of Your IMTS 2026 Investment

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NOVEMBER/DECEMBER 2025

MT MANUFACTURING TECHNOLOGY

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Table of Contents

Click See what’s trending

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Manufacturing Matters Get details on the latest industry news

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AMT Upcoming Events Important manufacturing technology dates and events to bookmark

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Making It in the United States by Gary S. Vasilash

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The Big Picture Recognizing U.S. Manufacturing’s Modern Golden Age

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Unearthing a New Golden Age of US Manufacturing by Chris Chidzik

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Plan Your Path to Success at the IMTS Exhibitor Workshop by Michelle Edmonson How Co-Line and Hexagon Are Redefining American Manufacturing by Travis Egan Layer by Layer: Lincoln Electric’s Transformation in Additive Manufacturing by Stephen LaMarca Mist Opportunities: Navigating Market Data Fog in a Government Shutdown by Chris Chidzik

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COVER DESIGN Jacob McCloskey | G raphic Designer

INFOGRAPHIC DESIGN Recognizing U.S. Manufacturing’s Modern Golden Age Hailey Sarnecki | Graphic Designer

MT Manufacturing Technology (ISSN # 2836-2896), November/December 2025, 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.

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DATE: January 28-30, 2026 | LOCATION: Fort Worth, TX An exclusive event for NTMA’s Chapter Leadership. This event has a targeted group of registrants. Chapter Leadership Summit provides a great opportunity to get in front of and personally meet our Chapter Executives, Chapter Presidents, and Trustees (also member company owners and Presidents). This event will help maximize your connections at the local level. Anticipated Attendance: 60-75 People

2026 NTMA CALENDAR OF EVENTS Please contact Kristen Hrusch, our Events Manager for more information and to register: Kristen Hrusch - Krusch@ntma.org 216.264.2845 or visit www.ntma.org/upcoming -events www.ntma.org/events

DATE: April 27-29, 2026 | LOCATION: Grand Rapids, MI NTMA gathers the best and brightest up-and-coming industry leaders to network, share knowledge and brainstorm about tomorrow’s manufacturing industry. Since this event targets the younger generation, they may be more receptive to newer technologies and processes. Build and grow your relationships with these industry influencers and be top of their mind. Anticipated Attendance: 100-150 People *NTMA has invited industry associations to partner for this event. Partnering associations will be: AMT, NFFS, AGMA and TMA.

DATE: September 14-19, 2026 | LOCATION: Chicago, IL This is the perfect place to showcase your product and any new technologies. NTMA will be hosting a luncheon to a targeted audience during IMTS that will allow our National Associates the opportunity to showcase new products and/or technologies. Anticipated Attendance: TBD

* Events Subject to Change*

DATE: November 10-13, 2026 | LOCATION: Las Vegas, NV NTMA’s signature event! Targeting Presidents, Owners and C-Level professionals for endless networking and learning opportunities. Anticipated Attendance: 150-200 People

NOVEMBER/DECEMBER 2025

CLICK

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

AMT Q3 Tariff Survey Results Tariffs, like the new Section 232 tariffs, are reshaping how manufacturers plan, invest, and compete – with consequences that extend well beyond the balance sheet. After the third quarter of 2025, AMT surveyed 80 companies to learn how they responded. From tariff fatigue to outlining areas of support, here are some important takeaways and insights from AMT’s 2025 Q3 Spot Survey.

MTForecast 2025: Navigating Manufacturing’s Economic Headwinds Against a backdrop of economic uncertainty, shifting global trade dynamics, and rapid technological evolution, MTForecast 2025 provided a data-rich, forward-looking view of manufacturing. Industry leaders, economists, and senior executives focused on strategic agility, cross-sector resilience, trade, and the growing role of AI in shaping business decisions. Pedal to the Metal LIFT, part of Manufacturing USA’s network of Manufacturing Innovation Institutes, has opened its Advanced Metallic Production and Processing Center in Detroit. The state-of the-art facility is reshaping material development production for additive manufacturing, speeding up the timeline – and shrinking costs – to create AM-ready powder.

AI, Automation, Additive: Get All A’s at IMTS 2026 Watch the latest “Tom and Lonnie Chat” with Dr. Tom Kurfess from Georgia Tech, AMT President Doug Woods, and AMT senior technology analyst Stephen LaMarca as they discuss A-plus opportunities promised by the prominence of AI, the integration of additive manufacturing, and the simplification of automation – all of which will be featured at IMTS 2026.

Digital Transformation in Defense and the Model Based Enterprise This five-part video series, with companion articles, explores the model-based enterprise as a solution to shift manufacturing from print-based to 3D CAD models, the importance of digital threads for consistent information flow, and the need for standardization to reduce translation costs. A cross-section of industry experts from small and medium sized manufacturers, large OEMs, and prime government contractors are featured.

Leveling up takes a lot of time and effort, but it’s faster with the help and shared experiences of another person or organization. Learning and networking are the greatest values I have received from AMT.

TIM THIESSEN Senior VP of Sales & Marketing Okuma America Corporation

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Email membership@AMTonline.org or scan the QR code to learn more about AMT membership.

NOVEMBER/DECEMBER 2025

MANUFACTURING MATTERS

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Manufacturing Matters Check in for the highlights, headlines, and hijinks that matter to manufacturing. These lean news items keep you updated on the latest developments.

TECHNOLOGY

Upgrading Your Business Begins With Adaptability Despite headwinds from global instability, labor shortages, and more, the outlook for manufacturing remains strong for those who stay adaptable. U.S. reshoring, investment in advanced technology, and rising demand in energy, defense, and semiconductors all point to long-term growth. But staying competitive takes more than watching trends. It means investing in your workforce, upgrading digital infrastructure, diversifying supply chains, and using automation to support your people. Manufacturers who tune their operations today will be the ones best positioned to capture tomorrow’s demand – whether it arrives next quarter or next year.

INTERNATIONAL

Aviation Backlogs Soar as MRO Spreads Around the Globe For global manufacturing technology leaders, aerospace demand is decisively shifting toward vital defense programs, engine MRO, space launch constellations, and advanced air mobility. The significant backlogs in single-aisle aircraft unequivocally support the need for automation, composite fabrication, and a digital-first approach to quality management. Defense and hypersonic industries are in demand for ultra-precision machining, advanced power electronics, and thermal management. MRO services require innovations such as additive repair, intelligent non-destructive testing, and rapid turnaround capabilities. Meanwhile, the space and advanced air mobility sectors seek low-volume, high-mix production facilities that are certification-ready. Backed by deep expertise, robust intellectual properties, and strong public-private sector collaborations, Singapore remains the prime destination for MRO and avionics. Morocco, however, is establishing itself as a cost-competitive alternative. Primarily benefiting from its French-speaking workforce and proximity to EU supply chains, it’s become an ideal location for aerostructure and wire harness production.

SMARTFORCE

ELEVATE: Powered By IMTS and WiM — Where Insight Meets Inspiration IMTS and the Women in Manufacturing Association (WiM) are joining forces to present ELEVATE, a powerful half-day conference and networking reception designed to inspire, empower, and connect professionals across the manufacturing technology community. Join us on Wednesday, Sep. 16, 2026, at McCormick Place in Chicago for an afternoon of bold ideas, industry-leading speakers, and meaningful connections. From 1 p.m. to 4:30 p.m., the ELEVATE Conference will deliver dynamic keynotes and panels to enable IMTS visitors and exhibitors to perform their best and achieve their goals. Then, from 4:30 p.m. to 6 p.m., keep the momentum going at an exclusive ELEVATE networking reception. Don’t miss it! Follow speaker announcements and updates at IMTS.com/ELEVATE.

THE INDUSTRY OUTLOOK ISSUE

MANUFACTURING MATTERS

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ADVOCACY

New Bill Expands Financing for Small Manufacturers The Made in America Financing Act, introduced in the House and Senate, proposes to double Small Business Administration (SBA) loan limits for small U.S. manufacturers. This critical expansion will raise maximum access to capital to $10 million, empowering companies to make significant long-term investments. This expanded funding is designed to allow small businesses to quickly modernize equipment, invest heavily in new automation technologies, and ultimately scale their production capacity. The primary goal of this legislation is to serve as a lifeline for manufacturers facing tight margins, strengthening domestic manufacturing and supporting quality, good-paying jobs across the country. To ensure financial integrity and accountability, the bill mandates that the SBA inspector general will thoroughly review loan performance after one year. The agency will then report annually to Congress on the program’s tangible results, specifically documenting job creation and retention.

INTELLIGENCE

Machine Tool Market Outlook Tied to Automation Over the past five years, the U.S. machine tool market has experienced a marked rise in automation adoption. As improvements in machine precision become increasingly incremental and costly, suppliers and integrators are turning to automation as a key differentiator – delivering more value through productivity for manufacturers. This trend shows no signs of slowing. In August 2025, the U.S. Manufacturing Technology Orders (USMTO) program recorded the highest per-unit average value in its history at over $287,000. While rising input costs and tariffs have likely contributed to the rise in machine tool prices, the sustained gap between the USMTO average unit value and the producer price index (PPI) for metal-cutting tools highlights a deeper shift. The divergence suggests that more value is being added through automation and integration services beyond the machine’s base cost. Given the continued widening gap between the two series, the outlook for machine tool industry orders looks like it will be driven by the continued adoption of automation.

Index of Average Order Value and Producer Price Index for Machine Tools

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Machine Automation Accelerates

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Jan-18

Jan-19

Jan-20

Jan-21

Jan-22

Jan-23

Jan-24

Jan-25

Sep-18

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Sep-22

Sep-23

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May-25

January 2019 = 100

Source: AMT , USMTO, Bureau of Labor Statistics

USMTO Avg. Value

PPI of Cutting Machine Tools

NOVEMBER/DECEMBER 2025

WHAT’S HAPPENING

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

UP NEXT

IMTS IMTS Exhibitor Workshop January 27-29, 2026 | Chicago, Illinois

The IMTS Exhibitor Workshop is a free, in-person event designed exclusively for IMTS exhibitors. Exhibitor Workshop provides in-depth information on best practices for both your booth operations and optimizing your preshow, on-site, and postshow marketing.

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

AMT MEMBER MEETUPS

AMT Member Meetups are regional gatherings of the AMT community. These free events bring together diverse perspectives from every corner of the supply chain to help manufacturing communities grow and innovate. Stay tuned for dates for these upcoming AMT Meetups. CINCINNATI, OH: January 29, 2026 CHICAGO, IL: May 5, 2026

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.

CINCINNATI, OH: May 7, 2026 MILWAUKEE, WI: June 2, 2026 MINNEAPOLIS, MN: June 4, 2026

MFG The 2026 MFG Meeting March 10-12, 2026 | Fort Lauderdale, Florida The MFG Meeting brings together manufacturing technology industry leaders to address key business challenges and provide actionable solutions. Sessions cover a wide range of topics, including workforce, economics, supply chain, leadership, politics, and more. INTELLIGENCE 2026 AMT Winter Economic Forum January 30, 2026 | Cincinnati, Ohio, and Virtual Join AMT’s annual Winter Economic Forum live in Cincinnati or virtually to get the latest manufacturing technology market forecast from Oxford Economics. The event will also include an outlook for IMTS 2026, insight from AMT’s research department, and some customer-industry trends to help plan for a successful year.

MTFORECAST MTForecast 2026 October 14-16, 2026 | Schaumburg, Illinois

MTForecast offers attendees the latest economic and global forecasts, manufacturing technology market insights, and information on new opportunities and challenges. Learn from the actual experts about the pitfalls and opportunities shaping manufacturing technology over the next few years.

Events & Media Sponsorship Looking for an all-access pass to an audience of manufacturing technology OEMs and distributers? Look no further! AMT offers event sponsorship opportunities that get your brand in front of your key audience.

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Making It in the United States Yes, there are challenges in manufacturing. But there are plenty of opportunities, too. BY GARY S. VASILASH CONTRIBUTING DIRECTOR Although there is certainly more than a small amount of roiling in U.S. durable goods manufacturing due to tariff uncertainties, let’s face it: At the end of the day, consumers still need to consume. According to the U.S. Census Bureau’s Manufacturers’ Shipments, Inventories, and Orders (M3) program, which is managed by the agency’s Economic Indicators Division, some industries are more than holding their own. Durable goods orders in August increased by $8.9 billion from July, a 2.9% rise, bringing the month’s total to $312.1 billion. Notably, of that total, one sector increased by $8.1 billion on its own: transportation equipment. Yes, planes, trains, and automobiles (although there is a whole lot more activity in the first and last than the middle). In terms of planes, the commercial aircraft industry essentially comes down to two: Boeing and Airbus.

THE INDUSTRY OUTLOOK ISSUE

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Escape and Lincoln Corsair to producing a truck. The company has developed an entirely different way to build a vehicle: the Ford Universal EV Production System. Just as Ford pioneered the moving assembly line, the new process separates vehicle production into three major lines. The front and rear sections are based on large, single-piece aluminum castings. The assembly line for the last component, the structural battery, will include the carpeting, seats, and consoles. The three sections are then combined at a final station. Some predict that the impact of this change in Ford’s manufacturing process might be analogous to what Henry Ford started in 1913. Stellantis announced that it will invest $13 billion in U.S. manufacturing over the next four years – the largest investment in company history. This investment will reopen the Belvidere Assembly Plant in Illinois to build two Jeeps, produce a new midsize truck at the Toledo Assembly Complex in Ohio, build a new large SUV at the Warren Truck Assembly Plant in Michigan, and produce a new four-cylinder engine at its factories in Kokomo, Indiana. While those investments are nothing to sniff at, in March 2025, Korea’s Hyundai Motor Group announced a $21 billion investment in the United States between 2025 and 2028. In August, it added $5 billion, bringing the total to $26 billion. These monies will be spent on a steel mill; increasing its automotive production capacity at its two Hyundai plants in Alabama and Georgia and its Kia plant in Georgia; and the creation of a robot design, manufacturing, testing, and deployment facility with an annual capacity of 30,000 units. (Not only does Hyundai know something about robots because of the deployments in its plants, but it also owns Boston Dynamics, which makes the quadruped robot Spot and humanoid robot Atlas.) Here, an Ioniq 9 EV is being produced at the Hyundai Motor Group’s plant outside Savannah, Georgia. The company is investing $26 billion in the United States for manufacturing. (Image: Hyundai)

While Boeing is based in the United States and Airbus is headquartered in Europe, a trade agreement between the United States and the European Union reinstated zero tariffs on civil aircraft in September 2025, leveling the playing field between the competitors. In the first half of the year, Boeing’s commercial airplane orders experienced huge growth compared to the same period in 2024, with 668 gross orders versus 156. At Airbus, that number was 494, up from 327 in the first half of 2024. And while that’s good news for European manufacturing plants, it’s also good domestically – Airbus operates a plant in Mobile, Alabama, where it employs more than 2,000 people who produce the A220 and A320 families of aircraft. Bigger Numbers (Smaller Products) In the automotive sector, the numbers are bigger (although the vehicles are smaller – and significantly less expensive). Through the first three quarters of 2025, General Motors delivered 2,150,298 vehicles in the United States, a 10.3% increase over the 1,949,920 it delivered in the same period in 2024. At Ford, domestic sales totaled 1,658,908 vehicles, up 7.2% from the same period in 2024, when it delivered 1,548,172. But Stellantis North America, the third company of what used to be known as the “Big Three,” didn’t perform as well through Q3 2025 as the other two, delivering just 928,024 vehicles, a drop of 6% from the same period in 2024 (982,827 vehicles). While not all of these millions of vehicles were produced in the United States, a significant number were, and there will be more. Serious Money These companies are each making significant investments in their U.S. manufacturing operations. In a letter to GM’s shareholders, Chair and CEO Mary Barra announced a $4 billion investment over the next two years in manufacturing plants in Michigan, Kansas, and Tennessee. It captures the thinking of automotive leaders in the United States: “We believe the future of transportation will be driven by American innovation and manufacturing expertise.” Two weeks before this announcement, GM made another: It would invest $888 million at Tonawanda Propulsion for the production of sixth-generation GM V-8 engines. In June, Ford announced a $2 billion investment at its Louisville Assembly Plant to produce a midsize electric truck, which it expects to launch in 2027. Interestingly, this investment doesn’t just retool the plant from making the Ford

NOVEMBER/DECEMBER 2025

FEATURE STORY

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Apple has built a 250,000-square-foot server manufacturing plant in Houston, which is set to launch mass production in 2026. These servers were previously made outside the United States. Apple’s American Manufacturing Program will enhance its glass production partnership with technology company Corning and develop a smartphone glass production line at a plant in Harrodsburg, Kentucky. When the factory is in full production, it will provide the glass for every iPhone and Apple Watch sold around the world. In addition to Corning, Apple is working closely with nine other suppliers to develop a U.S.-based end-to-end silicon supply chain. Also in August, Apple opened the Apple Manufacturing Academy in Detroit, which works with small and medium-sized businesses. It is partnering with Michigan State University to provide courses and programs in manufacturing subjects, including machine learning, automation, leveraging data to improve product quality, applying digital technologies, and more. As Sabih Khan, Apple’s chief operating officer, put it: “Apple works with suppliers in all 50 states because we know advanced manufacturing is vital to American innovation and leadership. With this new programming, we’re thrilled to help even more businesses implement smart manufacturing so they can unlock amazing opportunities for their companies and our country.” Capex From the Mag 7 The other tech companies that make up the Mag 7 (Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla) have announced their capital expenditures in the upper tens of billions. While not all of this money will directly relate to manufacturing, significant sums will be allocated toward the construction of data centers. That means producing manufactured components for these massive structures. And those structures are being filled with servers, which, of course, need to be manufactured as well. But there are some challenges – like the availability of skilled tradespeople to take on current and new jobs. Where Are the Workers? In July, the Harris Poll’s Corporate Strategy & Reputation Practice fielded a survey on the subject of the perceptions of Americans – from Generation Z (ages 18-28) to baby boomers (61-79). The headline of the results should be this: “91% agree trade

And here’s something that seems absurd: In April, Toyota announced it is investing $88 million in its powertrain plant in West Virginia. An investment of that size would be impressive normally, but compared to those aforementioned billions, it seems rather small – unless, of course, you provide tooling or equipment for the production of hybrid transaxles. (And to be fair, Toyota has already invested $2.8 billion into that plant.) Of course, the investments in U.S. manufacturing aren’t all being done by auto companies. This Is a Really Big Number The investments by these automakers are big, but there are still bigger ones out there. On Aug. 6, 2025, Apple CEO Tim Cook announced, “Today, we’re proud to increase our investments across the United States to $600 billion over four years and launch our new American Manufacturing Program.”

An Apple server plant in Houston will go into full production in 2026. (Image: Apple)

THE INDUSTRY OUTLOOK ISSUE

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what it calls the “Essential Economy,” which encompasses workers in agriculture, construction, energy, manufacturing, transportation and logistics, maintenance and repair, and the public sector. It noted: “The most acute labor shortages today are in the skilled trades essential to these lagging sectors. Investing in targeted education and training isn’t just social policy; it’s strategic talent development. We need to bridge the gap between educational institutions and employers, funding proven models that equip workers with the high demand skills needed to operate a modern, productive Essential Economy.” The “lagging” is compared with the productivity growth in the white-collar economy. The researchers point out: “The productivity bottleneck in the Essential Economy isn’t merely an academic concern. It has tangible, costly implications for businesses.” It notes implications for individuals, too: If productivity in the essential economy kept pace with the rate established 20 years earlier, U.S. GDP would be 10% higher, and, importantly, “a typical American worker would earn $5,000 more a year.” On Sept. 30, at the Ford Pro Accelerate: The Essential Economy conference held by Ford in Detroit, 300 leaders representing companies within that sphere came together to discuss these topics. Ford CEO Jim Farley said, “What happened to the Essential Economy? We outsourced a lot of skills and jobs. We stopped investing in the trades. If Henry Ford saw what has become of us, I think he’d be kind of mad.” Probably more than “kind of.”

jobs are just as important to society as white-collar jobs, with 63% strongly agreeing.” But then there’s this: “90% say most people don’t realize how well-paying skilled trades can be; 86% agree skilled trade careers are overlooked in schools today.” So, while people believe jobs in trades like manufacturing are important, they also believe young people aren’t learning about their advantages. Only 38% of Gen Z believes that skilled trades offer the best job opportunities. Boomers, who are aging out of the workforce, think skilled trades offer opportunities; 59% say so. Additionally, only 38% of Gen Z believes that skilled trades offer a faster and more affordable path to a good career; 40% of Gen Z is unaware of the high pay potential of jobs in the skilled trades. But here is something that businesses need to know about how they can help – and why. The survey participants were presented with this statement: “I have a more positive opinion of companies that support skilled trade programs.” And 81% of Gen Z, 89% of millennials, 91% of Generation X, and 97% of boomers agree. The companies that support training, apprenticeships, internships, scholarships, and similar programs for people pursuing a skilled trade will likely see serious ROI. The Essential Economy Research released by the Aspen Institute in June highlights the importance of businesses supporting the growth of

“We need to figure out how to i nvest in the people who build things.”

Jim Farley, CEO Ford Motor Co. Ford Pro Accelerate Conference (Image: Ford)

NOVEMBER/DECEMBER 2025

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years ago, but neither did many of their customers, who are now putting satellites and other payloads into orbit. This presents a whole new suite of opportunities for suppliers – and for people interested in manufacturing. For instance, Relativity Space, which was established in 2016, launched the Terran 1 rocket on March 22, 2023. This is notable, as it became the first 3D printed rocket to reach space. Measuring 110 feet tall and 7.5 feet wide, Terran 1 was the largest 3D printed object to exist at the time – with 85% of its mass 3D printed – and it went into space. The Relativity Space factory floor in Long Beach, California, boasts routers, lathes, machining centers, and other CNC equipment, as well as tools for vertical and circumferential friction welding. It also uses powder bed fusion and a proprietary wire arc additive manufacturing system to build components for its Aeon R engines. The engines will be used to power the Terran R rocket, which is scheduled to launch in 2026. Another company, Firefly Aerospace, which was established in 2017 near Austin, Texas, focuses on designing, engineering, and manufacturing small- and medium-lift launch vehicles. Like many newer companies in the field, Firefly uses advanced manufacturing technologies to produce its products.

This past April, the Air Force Research Laboratory at Edwards Air Force Base awarded Firefly a contract based on Firefly’s expertise in carbon fiber composite technology. The company will develop a ceramic matrix composite nozzle extension for liquid rocket engines. These nozzle extensions have traditionally been made of metal. According to Jason Kim, CEO of Firefly: “As we’ve seen with Firefly’s carbon composite barrels, domes, and tanks, composites provide a cost-efficient, lightweight solution that improves performance.” Not only do they anticipate a reduction in mass of more than 50%, but they also note a significant reduction in lead time. To be sure, there are many more startups and legacy aerospace companies. But what’s interesting about companies like Relativity Space and Firefly is that their approach to design, engineering, and manufacturing takes advantage of materials and methods that are rooted in advanced technology (and even science fiction) – the kind of approach that breaks from the “dirty” factories of the past and could attract a whole new generation of manufacturing professionals.

Many of the component parts for the Aeon R rocket engine were 3D printed by Relativity Space in Long Beach, California. Stage 1 of the Terran R spacecraft will use 13 of these engines. (Image: Relativity Space)

The Final Frontier Another area of transport – not exactly transportation – is growing, and, importantly, it is the kind of thing that would attract younger generations who may see working in manufacturing as dirty and dull. In the aerospace field, some startups are manufacturing in innovative ways. Not only did these companies not exist 20

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

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PRESENTS

From tornadoes to breakthrough technologies, Co-Line knows how to navigate disruption. In this episode of the IMTS+ series “The Architect,” host Travis Egan visits this small-town manufacturer to learn how relationships, like Co-Line’s partnership with Hexagon, fuel its digital manufacturing ecosystem – proving that size is no obstacle to digital transformation.

WATCH THE LATEST EPISODE OF THE IMTS+ SERIES “THE ARCHITECT,” BROUGHT TO YOU BY HEXAGON, ON IMTS.COM/PLUS.

Unearthing a New Golden Age of US Manufacturing

U.S. manufacturing has entered a new age of prosperity, but will manufacturers maintain course to reach new heights, or fall into the trap of nostalgia for a mythologized past? BY CHRIS CHIDZIK PRINCIPAL ECONOMIST Lamentations about the decline of U.S. manufacturing have become so commonplace that they can be found anywhere from news reports and comedies to family tables and political debates. This isn’t new – the perception of the state of manufacturing has long centered on employment trends – but the pessimistic narrative has gained particularly wide traction over the last 45 years as manufacturing employment has fallen by 35% from its peak in June 1979. In fact, even as employment trended upward before that peak, doomsayers could already be found. A 1976 article in The New York Times expressed dismay at the prospect of manufacturing jobs being lost in favor of service sector work at the regional level.

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While declining employment is often viewed in purely statistical terms, it is important

population with manufacturing knowledge can, at least in part, explain the enduring perception that manufacturing processes remain unchanged from previous generations: dirty, dangerous, and backbreaking. However, the safety, work environment, and type of work done by people in manufacturing workplaces have markedly improved from the heyday of those cliches. The Bureau of Labor Statistics (BLS) compiles data on employer reported workplace injuries. In 1979, these injuries or illnesses were commonplace in the manufacturing sector, affecting around 13 people for every 100 full-time employees. By 2023, the last year for which statistics are available, that number had fallen to just 2.8 injuries per 100 employees, a decline of nearly 80% and quite comparable to the rate of 2.4 across all private industries. While worker safety is of paramount importance, the quality of working conditions is also an important distinction of today’s manufacturing work. Many may decry automation as the impetus for replacing workers, but in many instances, automation has made manufacturing a much more attractive career prospect because it reduces dangerous, repetitive, or time-consuming operations. This enables employees to take on newer and often higher-value-added roles in production processes, such as design and inspection, or roles that support production, such as sales, shipping, and finance. Overcoming the persistent perception that the manufacturing workplace has changed little in the past half-century is critical to attracting new workers. The latest BLS data indicates that there are more than 400,000 currently open positions in the manufacturing sector. These positions are safer and more engaging, fostering a more diverse skill set than manufacturing jobs of the past. U.S. manufacturing output continues to rise, yet the bottleneck of labor availability constrains future growth. Peaks and Plateaus With a current shortfall of about 400,000 employees and projections that this gap could reach 2.1 million unfilled jobs

to remember that declines in employment represent the loss of income for a family, and in some cases, the unraveling

of communities. Given the destabilizing effects of shifting employment trends, the overall perception of the manufacturing industry has been understandably tied to employment trends and their seismic shifts. However, it would be a disservice to overlook the numerous positive signs for the industry. Today, despite a lower level of employment, U.S. manufacturing is experiencing a golden age, as measured by output,

investment, productivity, and workplace quality. Navigating the future of manufacturing requires a straightforward assessment of where it currently stands. Efforts to restore the environment to a romanticized version of the past risk returning U.S. manufacturing to a gilded age instead of prolonging its current golden age. Shock and Attenuation Participation in the U.S. manufacturing sector reached its height in November 1943 amid the manufacturing boom necessitated by the United States’ entry into World War II. At the time, nearly 39% of all employees worked in manufacturing. Since then, the share of the workforce dedicated to manufacturing has fallen. At its employment peak in June 1979, only 21.7% of the workforce was in manufacturing. At present, employment in manufacturing has remained steady, accounting for roughly 8% of the workforce. This declining share of the workforce is indicative of a shrinking share of the population with direct knowledge of manufacturing. The growing distance between the manufacturing sector and the shrinking share of the U.S.

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by 2030, the current high level of manufacturing activity is astonishing. Looking at the nominal value of U.S. gross domestic product (GDP) for manufacturing, output reached an all-time high in the third quarter of 2024. Since then, output declined slightly but quickly returned to an upward trend in the second quarter of 2025. Over time, however, the share of nominal GDP from manufacturing has declined in a near-linear fashion. A paper published in the spring of 2017 by YiLi Chien and Paul Morris of the Federal Reserve Bank of St. Louis also highlights this concerning trend. The authors entreat the reader to look at manufacturing as a percentage of real GDP, which takes into account the effects of inflation on prices over time. Chien and Morris find that “Manufacturing’s share of real GDP has been fairly constant since the 1940s, ranging from 11.3 percent to 13.6 percent.” The reason for this difference is that prices for manufacturing output grew a full percentage point slower than prices in the wider economy over the period studied. Productivity gains in manufacturing processes allowed these firms to increase output even amid the recent, unprecedented worker shortages. By updating this analysis with more current data, we find that manufacturing’s share has declined slightly from the 2017 levels found by Chien and Morris, hovering around 10% of real GDP since the first quarter of 2023. While this could be interpreted as stagnation in the manufacturing sector, the level of real GDP from manufacturing shows that output reached its highest level ever recorded in the second quarter of 2025. This upward trend in real manufacturing GDP, combined with its steady share, means that the growth of manufacturing output has roughly matched the overall economy’s growth since the beginning of 2023. Other measures of manufacturing activity tell a similar story. Since manufacturing employment peaked in June 1979, industrial production has doubled. Real value added by U.S. manufacturers reached its highest level in the second quarter of 2025. While current manufacturing output is at a historical high, the investments made today will determine the future competitiveness of U.S. manufacturing. The next chapter will be written by those who build yet-to-be-invented products and utilize processes that have yet to be tested.

Terraforming the Manufacturing Landscape Beginning in 2024, the Bureau of Economic Analysis (BEA) published statistics to measure the economic activity driven by research and development spending. In September 2025, the BEA published data on the economic impact of R&D spending dating back to 2012. From 2012 to 2023, the total impact of R&D spending from manufacturers nearly doubled from $110.3 billion to $208.9 billion. Unsurprisingly, a large portion of this came from computer and electronic product manufacturers as data centers and alternative forms of electrification came online.

While the absolute impact of manufacturing R&D has grown, the share of total R&D impact from manufacturing has declined from nearly 40% in 2012 to 32.6% in 2023, reflecting the growing impact of R&D funds from non-manufacturing sectors of the economy. Between 2012 and 2020, private R&D impact increased by approximately 64%, while the number of utility patents granted rose by 36%. The U.S. Patent and Trademark Office only has data available through 2020, but the lag between patents being granted and R&D translating into economic activity may have been exacerbated by the disruptions caused by the COVID-19 pandemic and ensuing recession.

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The R&D that goes into developing new products or processes and the patents that eventually protect them are only half of the equation for future success in manufacturing. Attracting, training, and retaining top talent is the other crucial half; in an effort to bridge the current workforce gap, educational institutions have increased their spending on metalworking machinery more than fivefold between 2012 and 2024, according to the U.S. Manufacturing Technology Orders Report published by AMT – The Association For Manufacturing Technology. Not all machinery purchased by educational institutions is destined to be used directly to train students for a career on a shop floor; the mere presence of manufacturing technology can acclimate students to the field and inspire them to a lifetime of craft and innovation – and at best, they’ll learn about taking a concept from design to production. Increasing manufacturing fluency among younger generations will pay dividends in future inventiveness and productivity. Finding Faults Through the second quarter of 2025, businesses across all sectors invested roughly $1.4 trillion in new equipment on an annualized basis. Of that investment, only about $13 billion is expected to be dedicated to the metalworking machinery AMT members build and sell. The small relative size of the market for manufacturing technology compared to all investment in equipment understates the importance of metalworking machinery to the overall manufacturing economy. Without the technology to cut, bend, form, and fabricate metal parts, the machinery and inputs critical to the rest of the manufacturing industry could not be made domestically, requiring the import

of parts, raising potential logistical and national security issues. Just as society and the economy are markedly different today than they were in 1979, when manufacturing employment hit its historical peak, the industry looks decidedly different from what it was 45 years ago. The future of U.S. manufacturing is intertwined with the health of the market for manufacturing technology, and its strength and success will depend on capital equipment and a skilled workforce to effectively utilize that equipment. Reconsidering the aims and current effectiveness of industrial and trade policies instituted over the last half-century or more is certainly justified. Yet, as we look toward the future of manufacturing and foster an environment that unleashes American ingenuity and inventiveness, we need to do so with the recognition that, in terms of output levels, the environment for workers, and the opportunities before us, manufacturing is currently in a golden age. To ignore these trends and embrace a path based on a romanticized past – with more employment but less output, more dangerous conditions, and less efficient operations – risks stifling the length of this prosperous period. The result could be a future that looks promising on the surface but lacks the underlying strengths that carried manufacturing through the first quarter of the 21st century on such stable footing.

If you have any questions about this article, please contact Chris at cchidzik@AMTonline.org