Business Operations

Business Operations

D-Wave Achieves “Quantum Supremacy”

Quantum computing firm D-Wave has achieved a singular breakthrough: it has simulated the “properties of magnetic materials,” opening up the opportunity to “invent” new materials without having to produce them physically in a lab, as D-Wave CEO Alan Baratz told Fast Company.

What it means: The achievement, first published in Science earlier this month, marks the first time a quantum computer has solved a useful, real-world problem that a classical computer couldn’t manage.

  • In fact, “To simulate the property of magnetic materials on a classical computer—as the D-Wave team recently did using its quantum computer—would require nearly 1 million years and more energy than the entire world utilizes over the course of a year. D-Wave’s team did it in 20 minutes,” according to Fast Company.

Quantum vs. classical: “Rather than store information using bits represented by 0s or 1s as conventional digital computers do, quantum computers use quantum bits, or qubits, to encode information as 0s, 1s or both at the same time,” D-Wave explains on its site.

  • “This superposition of states—along with the other quantum mechanical phenomena of entanglement and tunneling—enables quantum computers to manipulate enormous combinations of states at once.”
  • D-Wave’s annealing quantum computer uses these capabilities to solve problems by finding the “lowest energy state” in an enormous range of possible solutions.
  • “To imagine this, think of a traveler looking for the best solution by finding the lowest valley in the energy landscape that represents the problem,” as D-Wave puts it.

The possibilities are vast: Being able to simulate materials without creating and testing them in the lab offers significant opportunities for the manufacturing industry and could save companies huge amounts of time and resources. D-Wave foresees that these simulated materials could have applications in everything from “pacemakers to cellphones,” as it told Fast Company.

  • “There’s no shortage of potential applications,” said D-Wave Chief Scientist Mohammad Amin.

Further innovation: Another impact of quantum computing is its potential to revolutionize blockchain technology, D-Wave told us.

  • “Manufacturers are increasingly adopting blockchain technology to enhance supply chain transparency, track product origins, improve inventory management, and streamline operations. This adoption has led to increased efficiency and reduced costs,” said D-Wave Global Government Relations and Public Affairs Leader Allison Schwartz.
  • “Annealing quantum computing offers a potential solution by providing a faster and more environmentally friendly alternative to manufacturers’ current mining operations using classical computers.”
Business Operations

Schneider Electric to Invest More Than $700 Million in U.S.

Global energy management and digital transformation giant Schneider Electric will invest more than $700 million in U.S. operations over the next two years, the company announced yesterday (The Dallas Morning News, subscription).

What’s going on: “Schneider said it intends to leverage the investment to ‘support the country’s focus on bolstering the nation’s energy infrastructure to power AI growth, boost domestic manufacturing and strengthen energy security.’”

  • The investment—the largest planned single capital expenditure in Schneider Electric’s 135-plus-year history—will be used to expand manufacturing facilities across the U.S. and to boost “smart factory transformation” across Texas, Massachusetts, Missouri and Tennessee, among other states.
  • The company is the latest in a string of large manufacturers to announce sizeable domestic investments. Last week, biopharmaceutical firm Johnson & Johnson said it would spend more than $55 billion in the U.S. over the next four years.
  • The announcement comes less than a year after the opening of Schneider Electric’s 105,000-square-foot facility in Red Oak, Texas, to support the data center boom in the Dallas–Fort Worth area.

Where else funds will go: The money will also be used to expand a campus in El Paso, Texas, “to keep up with growing demand to increase production of switchgear and power distribution products,” and to open a Houston innovation center that will offer AI-powered automation solutions.

Our take: “Schneider Electric’s significant investment is a clear sign that manufacturing in America is moving forward—driving economic growth, innovation and job creation across the country,” NAM President and CEO Jay Timmons said in a statement quoted in the article.

  • “By expanding their operations with a focus on energy security, automation and AI, Schneider Electric is not only strengthening America’s competitiveness but also creating new opportunities and powering our nation’s future.”
Business Operations

Manufacturing Wins: J&J Invests More Than $55 Billion

Johnson & Johnson will spend more than $55 billion on manufacturing, research and technology in the U.S. over the next four years, the biopharmaceutical company announced (Axios). These investments include a long-planned $2 billion state-of-the-art biologics facility in Wilson, North Carolina.

What’s going on: The NAM joined J&J for the groundbreaking of the 500,000-square-foot biologics manufacturing plant in Wilson on Friday.

  • The White House praised the announcement and J&J’s commitment to manufacturing in America. North Carolina Gov. Josh Stein and Rep. Don Davis (D-NC) also attended the ceremony to highlight the facility’s importance to the state economy and the jobs it will bring to the state.

Other projects across the total investment will include:

  • Three new advanced manufacturing sites and the expansion of several facilities in J&J’s Innovative Medicine and MedTech businesses;
  • Significant spending on research-and-development infrastructure “aimed at developing lifesaving and life-changing treatments in areas such as oncology, neuroscience, immunology, cardiovascular disease and robotic surgery,” according to the company; and
  • More investment aimed at speeding drug discovery and development, supporting workforce training and improving business operations.

Common goal: The Wilson site demonstrates the power of collaboration, Johnson & Johnson Executive Vice President and Chief Technical Operations & Risk Officer and NAM Board Chair Kathy Wengel said at the groundbreaking.

  • “Today is a tangible example of how J&J is bringing communities, government, education and industry together to achieve the common goal of creating a future-ready workforce that is ready to tackle the toughest health challenges and achieve new breakthroughs.”

Why it’s important: The investments will strengthen not only North Carolina’s economy, but the U.S. economy as a whole, NAM President and CEO Jay Timmons said at the event.

  • “Every $1 invested in manufacturing adds more than $2.60 to the economy. That’s top-of-the-line ROI for communities, neighborhoods and cities like Wilson—among the best ROIs you can get. And every new manufacturing job supports, on average, five additional jobs in other industries.”

The big picture: The new Wilson facility will generate a $3 billion impact across North Carolina in its first decade of operation.

  • It will support about 5,000 jobs during construction and create more than 500 permanent positions—paying an average of $109,000 a year—in the state (WRAL News).

Certainty and predictability: These investments illustrate why policymakers must ensure that manufacturers have more certainty and predictability, not less, Timmons added.

  • “Manufacturing—especially biopharmaceutical manufacturing—requires years of planning, ingenuity and investment decisions,” he said. “When there’s stability, common sense and competitive policies, companies like Johnson & Johnson can plan for the future—and plan big.”
  • Timmons said that to “make more wins like this happen,” elected officials must stay focused on a comprehensive manufacturing strategy, including a “competitive tax policy, balanced regulations, prompt permitting, abundant energy and smart trade policies.”

The tax factor: J&J credits the 2017 Tax Cuts and Jobs Act with allowing it to increase its investment, according to MassDevice.

  • Investments like J&J’s “are why it is critical that pro-growth provisions of the 2017 tax law be made permanent and more competitive,” Timmons wrote in a social post. “If Congress fails to act, 6 million American jobs—184,000 in North Carolina—will be wiped out. We can’t let that happen.”
  • But if Congress does preserve the measures, manufacturing will win, Timmons said. “And when manufacturing wins, America wins.”
Input Stories

Digital Transformation Sees Explosive Growth

Manufacturers are increasing their investments in digital assets, according to a recent survey from the Manufacturing Leadership Council, the NAM’s digital transformation division.
 
What’s going on: Due in large part to expectations of economic growth, manufacturers plan to either maintain or boost their spending on smart factory investments, they told the MLC in the recently published results of the Smart Factories and Digital Production Survey.

  • Respondents also said they are optimistic about continued digitization and adoption, with 69% expecting moderate growth and no recession.
  • While 28% would call their current operations “smart” or “somewhat smart,” 76% expect to be there in the next two years.
  • Awareness of AI is growing by leaps and bounds among manufacturers; some 34% said they see AI as very significant. (Last year, just 10% said the same.)   

Key points: The survey’s top takeaways include the following:

  • Digital transformation is changing the game: Most manufacturers—60%—see digital transformation as something that is redefining the industry.
  • More manufacturers are going digital: Some 75% of manufacturers say they are at “midlevel” digital maturity, up significantly from 2024 and 2023.
  • AI’s role is inevitable: Fully 80% of manufacturers fully or partially agree self-managing and self-learning facilities powered by AI and machine learning are coming.
Business Operations

How a Small Manufacturer Offers Big Retirement Benefits

401(k) fees are a hot topic of conversation if you are an HR leader. When Miltec UV Human Resources Director Karen McKernan was discussing 401(k)s with an old friend, she discovered that Miltec, a small manufacturer, paid much more in fees than her friend’s larger employer. She was aghast, but what could Miltec do about it? The company did not have the purchasing power of a large firm, and so its options seemed limited.

Not so fast. Soon after that conversation, McKernan started receiving emails from the NAM about its new multiple employer plan, the Manufacturers Retirement & 401(k) Savings Plan, which allows many companies to participate in one 401(k) plan. Not only does the larger number of participants lower the fees, but the plan offers administrative and compliance oversight, as well as other benefits.

After doing her research, McKernan was convinced. By mid-2022, she was working with the NAM, the plan administrator, and recordkeeper and service provider Principal to make the switch. On Nov. 1, 2022, the new plan went live for Miltec employees. Today, McKernan says, she would never go back.

The benefits: Once McKernan laid out all the advantages for Miltec’s owners and 401(k) trustees, NAM 401(k) was an “easy sell,” she told us.

  • Not only did the fee reduction seem like a “no-brainer,” but the new plan would lift a considerable administrative burden that had fallen entirely on McKernan. It would also offer benefits to employees that Miltec, as a small company, could not add on its own without creating even more administrative tasks.
  • Furthermore, the NAM 401(k) comes with an independent 3 (38) investment fiduciary, One Digital, which reviews the funds’ performance regularly and issues reports on a quarterly basis, ensuring low-performing funds are “watched” and subsequently removed and replaced when needed. By delegating investment decisions under this arrangement, a company significantly reduces its potential liability for poor investment decisions.
  • Additionally, any plan with more than 100 participants must undergo an annual audit, which is time consuming and expensive. Under NAM 401(k), the plan coordinates and manages the audit for participating companies.

What she doesn’t miss: McKernan listed all the duties she used to perform for Miltec’s own 401(k), which have now been taken over entirely by the NAM’s plan. She doesn’t miss:

  • Monitoring enrollment, which Miltec’s employees can now undertake directly on Principal’s website;
  • Sending out many required annual notices;
  • Compliance testing and 5500 filings (which ensures the plan meets the IRS’s requirements for retirement plans, so that employees can receive tax benefits);
  • Sending out summary annual financial reports and quarterly statements; and
  • Handling employees’ questions and all communications about the plan.

In contrast, McKernan now only provides information to Principal through an automated payroll report and keeps an eye on how things are going, just in case. There have been few problems, she told us, and those were fixed with alacrity by Principal and the NAM.

Implementation: The entire timeline, from learning about NAM 401(k) to finalizing the switchover, took no more than a few months, McKernan said.

  • Principal oversaw the transition, with weekly check-ins, a dedicated project manager and a schedule that included clear deadlines. While transitioning 401(k) plans is “a project,” McKernan said, Principal “managed it very well, including all required communications, and finishing right on time.”
  • A word of advice: “If I had to do it all over again, I would have moved the plan over on Jan. 1 instead of Nov. 1,” said McKernan. Having two different plans in one year proved to be more of a headache than she expected, as it forced Miltec to do compliance testing on both plans in 2022.

The reception: “The company’s employees and owners are very pleased with the new NAM plan,” McKernan said.

  • Aside from the savings in time and money, NAM 401(k) offers a host of other features that manufacturers can customize. One new feature that has proved popular with Miltec’s employees is loans, noted McKernan.
  • In addition, Miltec’s previous plan had a 12-month waiting period before employees could participate, but NAM 401(k) reduced the wait to six months—which is far more appealing to new hires, she added.
  • Ultimately, Miltec’s leaders and employees understood and appreciated the logic of joining a multiple employer plan, said McKernan. “They recognize the more participants you have, the more buying power you have. They are seeing the positive results of having access to a robust fund lineup and how that translates to lower fees every time they receive a quarterly statement.”

The bottom line: “I honestly don’t see how a small manufacturing company wouldn’t benefit from joining the NAM 401(k),” said McKernan.

  • “I’ve been in HR for a very long time, and when we talk to job candidates about benefits, the 401(k) plan always comes up. It’s a benefit that is necessary to attract talent, as well as help your employees meet their retirement goals,” she added.
  • “I wouldn’t hesitate to recommend this plan to any small, medium or large manufacturer.”
Business Operations

Rethink 2025 Is Coming Up Fast

Get ready! Manufacturing’s leading annual event on accelerating digital transformation is right around the corner.

What’s going on: Rethink—held by the Manufacturing Leadership Council on Marco Island, Florida, each June—is a must-attend conference for anyone interested in Manufacturing 4.0 and where it’s headed (The MLC is the digital transformation division of the NAM.)

  • This year’s event takes place June 15–18 at the JW Marriott Marco Island Beach Resort.

Why you should go: Rethink attendees will get an inside look at the cutting-edge processes and technologies transforming manufacturing today—directly from those creating and implementing them. They’ll also get a chance to:

  • Consult with peers on manufacturing’s most critical initiatives, including smart factories and digital production, resilient supply networks and analytics and data mastery;
  • Participate in real-time discussions and one-on-one meetings to help them understand how various solutions can solve their business problems;
  • Hear from industry leaders and experts during panel discussions, executive interviews and more;
  • Interact and collaborate with peers during interactive “think tank” sessions; and
  • Hear from the MLC’s event partners during Rethink’s exclusive VIP Tour.

Who will be there: Scheduled speakers include Siemens USA President and CEO Barbara Humpton, Eaton Vice President of Industry 4.0 Craig Sutton, Hershey Company Vice President of Manufacturing, Operations Technology and Supply Chain Strategy Will Bonifant, Rockwell Automation Senior Vice President of Intelligent Devices Tessa Myers and many more.

The gala: Closing out the packed three-day event is the Manufacturing Leadership Awards Gala, at which the MLC will recognize award finalists and winners of the Future of Manufacturing Award, the Manufacturing Leader of the Year, the Small/Medium Enterprise Manufacturer of the Year and the Large Enterprise Manufacturer of the Year. The gala will take place on the evening of June 18.

Attend: Register online here for Rethink 2025. (NAM members get a discount at checkout.) Questions? Send them to [email protected].

Business Operations

Ford Gives Breast Cancer Patients a Comfortable Ride

After several grueling rounds of chemo, Lynn Simoncini found herself preparing for a mastectomy in November 2022. She searched for advice on online forums for breast cancer patients and came across a warning that surprised her—a major challenge for patients following surgery was the simple act of wearing a seatbelt.

When Simoncini was recovering from her own operation, she found this warning was correct. it was impossible to drive comfortably with a seatbelt pressing painfully against the surgical scar. She tried wrapping the belt in a hand towel, but it didn’t work very well; other patients also came up with makeshift solutions, but some just drove unsafely while holding their seatbelts away from their chests.

Unlike other patients, however, Simoncini was well-placed to find a solution. A creative director at VML who works on the Ford Motor Company account, she sketched out a design for a seat belt attachment that could be manufactured by the automaker. With the help of her writing partner and manager, she pitched the idea to Ford. The result: Ford’s recently released SupportBelt, now available to patients nationwide—for free. 

Ford takes it on: Ford, which has a 30-year history of supporting breast cancer patients through its Warriors in Pink program, was  incredibly receptive to Simoncini’s idea, she told us. The company gave her design to engineer Emily Obert, Ford’s manager of in-vehicle accessibility in digital product design, who began developing prototypes. 

The process: As Obert worked on the project with Simoncini’s help, they discovered that the need for this belt was considerable. First, oncologists told them that the inability to wear seatbelts was widespread among patients, which Ford had not known previously, Obert said.

  • The patients that Obert interviewed also said that their chests were sensitive even during chemo and before surgery, and many still had some chest discomfort long after the operation. In addition, chemo ports are installed in the upper chest and can often make wearing a seatbelt uncomfortable.
  • With 100,000 women undergoing mastectomies every year in the U.S., and many more undergoing other stages of treatment, the SupportBelt would be hugely helpful, Obert realized.

The innovation: The winning design is elegantly simple. A soft foam pad, hollow on the inside, rests against the chest underneath the seatbelt, which is secured to it by Velcro straps.

  • The SupportBelt’s hollow pad gives it the flexibility to conform to different body shapes, and the soft foam alleviates the pressure on the sensitive area, Obert explained.
  • The belt is slightly longer than a typical seatbelt attachment, which keeps its ends further away from the chest. It is also designed to cup the shoulder and reduce pressure on that area as well, which is also often sensitive following surgery.
  • Lastly, the SupportBelt is crafted carefully so that the driver can move his or her head with ease and features leather accents that complement a car’s interior.

The launch: After the company completed testing, the SupportBelt was finally ready for production and distribution. This past October, patients began getting their belts—free of charge.

  • Right now, the belts are only available to the U.S., and Ford is still fulfilling its first 2,500 orders. It has more belts available, however, and is gearing up for a next round of orders.

Attention, automakers: Ford has made the SupportBelt design open source, in the hopes that other automakers will make their own versions to blend in with their cars’ materials. “That’s my dream,” said Simoncini. 

The last words: Simoncini is glad that her teenage son got to witness the development of the SupportBelt, which became a source of inspiration and pride during a painful time in their lives. She says that the whole experience makes her especially proud to work with Ford, a company that “walks the walk.”

  • “This got me to work every day” during her illness, she told us.

Read more, order here: If you want to learn more about the SupportBelt or order one, please go here.

Business Operations

Trend of the Week: Enabling Innovation in Manufacturing


At the NAM, we’re examining some of the top trends that are shaping manufacturing this year, and offering the resources you need to take action.

Today, we’re taking a look at the industry’s efforts to enable innovation—and how manufacturers are working to stay on the cutting edge.

Applying technology: Digitalization can increase the speed and agility of innovations in areas like prototyping, iteration, simulation and modeling. And by using AI and data analytics to improve decision-making, manufacturers can build resilient, transparent supply chains that are more efficient and effective.

Upscaling workforces: Because of the rapid pace of technological advancement and adoption, manufacturers will have to create a workforce that is ready for the future—and processes designed to transfer knowledge and skills effectively and continuously.

Harnessing partnerships: Manufacturers can lean into collaborations that help to accelerate innovation. By connecting with manufacturing peers, government institutions and academia, industry leaders can develop unique and inventive paths forward.

Expert insight: According to CEO and Co-Founder of Narratize Katie Trauth Taylor, tools like generative artificial intelligence can accelerate and automate manufacturing innovation—with human ingenuity at the helm.

  • “Human-led AI methodologies enhance teams’ ability to analyze opportunities, translate complex concepts into compelling business cases and think deeply about their innovative work,” said Taylor. “With reduced documentation and improved communications, product teams can reallocate their time value-generating work—deeper market research, sharper strategy and accelerated development.”

Resources for you: Want to dive deeper? Check out some additional resources from the NAM.

  • Explore the Innovation Research Interchange, a division of the NAM that focuses on value creation and top-line growth through the management of innovation.
  • Join one of the Manufacturing Leadership Council’s Plant Tours in person—or read summaries of past tours—to get an inside look at how other manufacturers have reshaped processes to advance their businesses.

 

Business Operations

Siemens Does More with Less

When Siemens sees a feasible way to save resources and improve efficiency, the company takes it. 

Case in point: The global industrial manufacturing and technology business recently opened one of the first all-electric powder coating paint lines for the electrical distribution industry in the U.S., in Grand Prairie, Texas, to cut down on natural gas consumption.

  • Siemens wholly replaced the original paint line to an all-electric system, which has reduced natural gas consumption by more than 90%, according to the company.
  • “The timing was fortuitous,” said Stacy Mahler, U.S. head of sustainability for Siemens Smart Infrastructure. “We’d done an assessment of [the facility] and saw that our Scope 1 emissions were coming mostly from the paint line, which at 30 years old was due for replacement. The team realized that there was an opportunity to make an investment that would not only modernize the process but also lower the carbon footprint and help to manage the volatility in energy cost.”
  • That change—made without interruption to plant operations because the new line was built alongside the old line—is part of Siemens’ larger goal to achieve a net-zero carbon footprint across its operations by 2030. It’s 55% of the way there already.
  • Next up: assessing other company facilities globally for the same all-electric upgrade. One outcome of the effort in Grand Prairie is a cross-business team of experts working to replicate success at Siemens’ other facilities, like the newly expanded facility in Pomona, California, while sharing their knowledge with the broader manufacturing community.

Waste not: At its Spartanburg, South Carolina, site, Siemens is extracting and reusing waste oil found in materials on the floor.

  • “We’ve partnered with a third-party company that provides the infrastructure within our own facility to take oil from rags and other materials, absorb it and then recycle or downcycle it,” Mahler told the NAM, adding that in the latter, the oil can be made available for other downstream applications.
  • The impact is big, recycling about “3,000 pounds of oil-absorbent material that otherwise would have gone to landfill.”

From trash to energy: Siemens has also designated two of its American facilities—the one in Grand Prairie and another in Hingham, Massachusetts—as “landfill-free,” meaning that the sites incinerate all their nonrecyclable waste, producing thermal energy to power operations.

  • “We’re taking waste that’s coming out of the facility, and instead of having waste management take it, we partner with a company that extends the useful life of the raw material and prevents it from sitting in a landfill,” Mahler said.
  • The two-facility program redirects approximately 1,000 tons of waste each year.

Reusing metals: At its Roebuck, South Carolina, manufacturing center, Siemens uses a wastewater treatment process that recovers metals for reuse.

  • The onsite system “extracts valuable metals—including copper, aluminum, tin and iron—from sludge that are a byproduct of painting and fabrication processes,” Mahler said. “These are then recycled instead of sent to the landfill.”
  • Siemens recovers about 59,000 pounds of metal annually this way.

Even the windows: Siemens has also slashed energy consumption at its Fort Worth, Texas, facility using a unique type of window.

  • Michigan-based glass solutions startup LuxWall recently installed its Enthermal Glass windows throughout the office in the Siemens plant. “The glass operates like a thermos, reducing both emissions and the energy bill,” according to Mahler.
  • Installing the windows can cut a building’s emissions by 35% to 40% and reduce cooling costs by 20%, according to LuxWall.
  • Siemens has been so impressed with the reductions it’s seen that it has even begun “sharing the product with our suppliers and customers.”

Onward and upward: Chief among Siemens’ sustainability goals for the coming years is “accelerating action across our other U.S. facilities, our supply chain and for the manufacturing sector as a whole,” said Mahler.

  • “We’re trying to pave the way, show proof of concept and hopefully remove some of the barriers in the name of sustainability and more efficient operations.”
Business Operations

Why Constellium Recycles Cans—and You Should, Too

If you’re finished with that soda, Constellium hopes you’ll throw the can in the nearest recycling bin.

Use and reuse: Used cans are the mainstay of the global aluminum manufacturer and recycling giant, which owns and operates one of the world’s largest used beverage can (UBC) plants, in Muscle Shoals, Alabama. There the company recycles the equivalent of more than 20 billion cans every year.

  • “We shred the cans, remove the inks and coatings and then remelt that into aluminum we can use,” said Constellium Vice President of Strategy and Business Planning for Packaging and Automotive Rolled Products Raphael Thevenin. “It’s a very circular way of using the material. Within 60 days, it’s back on the shelf” as new cans.
  • Using UBCs to make new cans consumes 95% less energy than using new aluminum and is a key piece of the entire aluminum production supply chain.

Many uses: Aluminum can be recycled almost infinitely, a characteristic that gives the metal a wide variety of applications in manufacturing, as does its light weight and durability.

  • In addition to canstock, Constellium’s aluminum products include auto rolled and structural products used for vehicle hoods, doors, battery enclosures and bumpers, as well as aerospace solutions, armored products for the defense industry and much more.

Why cans? UBCs are “so widely available in the U.S., and we have such a strong network of traders that we’re able to recycle them in large volumes,” Thevenin continued, adding that 10 American states give cash deposits on beverage containers. (This means that consumers can redeem their empties for cash, currently an average of 5 cents a pounds for aluminum cans.)

  • However, while the U.S. consumer recycling rate for UBCs is generally higher in states with deposits, it’s on the decline nationwide, having fallen to 43% in 2023 from 45% in 2020.
  • “We’re seeing a million tons of aluminum landfilled in the U.S. every year,” according to Thevenin.

What they’re doing: The increasing number of UBCs consigned to the trash means “the availability of scrap metal is declining,” Thevenin continued.

  • In an effort to reverse the trend, Constellium is assessing the possibility of pushing for greater collection efforts in areas where UBC recycling is low, urging states with deposits to offer more money for exchanges and advocating the construction of more UBC-recycling infrastructure throughout the U.S.

Why it’s important: For the sake of both cost and sustainability, the U.S. must increase its stock of available aluminum scrap, Thevenin said.

  • “Because we don’t have the [widespread] infrastructure in place, a lot of scrap is exported outside the U.S.,” he told us. “But if we want to make sure the products we put on the market are sustainable and profitable, we have to use as much recycled material as possible.”
  • Europe recycles about 75% of its UBCs and is set to recycle about 90% by the end of the decade, according to Thevenin. “There’s a huge need to reduce the gap between the U.S. and Europe.”
  • To that end, Constellium has undertaken a campaign to educate lawmakers on the need to build out U.S. infrastructure. “We need to make sure legislators are aware,” said Thevenin. “They need to understand the importance of keeping more scrap metal at home.”

Recycling cars: In Europe and North America, Constellium is actively investigating new ways to recycle aluminum from old cars efficiently, either through sorting or dismantling.

  • “It’s about a 10-to-15-year cycle for car recycling, meaning that the metal comes back in the form of a new car all those years after” the initial recycling, Thevenin said. “Today the most economical way to get scrap from a car is to shred it, so you get a mix of materials and have to sort plastics, glass, metals, then nonferrous metals and steel. We’re working on developing new alloys that are more scrap tolerant and testing them on the market.”
  • Constellium is also collaborating with manufacturers on creating a laser/X-ray machine that will be able to sort the different alloys in recycled cars, easing and speeding the recycling process.
  • In the longer term, the company hopes to work with automotive makers to standardize the alloys used in vehicles because “when it’s mixed, it’s more difficult to sort.”

The bottom line: Aluminum recycling is a no-brainer because it’s a win for consumers, manufacturers, retailers and the environment, Thevenin went on.

  • For example, once a UBC collection plant “is operational, it’s self-sustaining because [the operator] can sell to companies, such as Constellium, and then invest that revenue on more and better infrastructure.”
  • When it comes to vehicles, “when car makers develop a new model, they should make sure it’s easy to recycle” because doing so will mean both cost savings and “being able to offer consumers lower-carbon products.”
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