Policy and Legal

Light-Touch AI Regulation Serves Manufacturers, Consumers Best

Artificial intelligence has become integral to modern manufacturing, which is why manufacturers support the Trump administration’s goal of making America globally dominant in AI, the NAM told the White House this month.

What’s going on: “[M]anufacturers use AI in myriad ways, which has made AI integral to modern manufacturing and put manufacturers at the forefront of developing and implementing AI systems,” the NAM told White House Office of Science and Technology Policy Acting Director Michael Kratsios and AI and Crypto Czar David Sacks last Friday in response to a request for information on the development of an AI action plan.

  • The NAM supports President Trump’s stated goal of “sustain[ing] and enhance[ing] America’s global AI dominance in order to promote human flourishing, economic competitiveness and national security” while also, in Vice President Vance’s words, “avoid[ing] an overly precautionary regulatory regime.”
  • The NAM has been one of the foremost voices for smart regulations on AI. Last May, it published “Working Smarter: How Manufacturers Are Using Artificial Intelligence,” a first-of-its-kind AI report on AI deployment in manufacturing and an accompanying list of suggested AI-policy actions Congress and the administration should take.

What should be done: To ensure that Americans benefit from AI safely and in a manner that does not unduly hamstring innovation, four specific steps should be taken, the NAM said:

  • Direct regulators to update their frameworks for the AI age: “[M]anufacturers recommend that the AI Action Plan direct federal regulators to review the statutory and regulatory frameworks they maintain and enforce”;
  • Customize AI regulations: “AI is context-specific, so ‘AI regulation’ should be too”;
  • Transparency between AI vendors and users: The plan should direct [the National Institute of Standards and Technology] to work with the industry to develop best practices on how vendors explain how they develop and train their AI systems, to help companies defend their use of these AI systems in front of regulators.
  • “Right-size” compliance burdens: “The ubiquitous use of AI throughout modern manufacturing, as well as manufacturing’s dependence on innovation, underscore the need for rules that enable rather than hinder manufacturers’ development and adoption of AI systems.”

Other critical needs: In addition, the NAM urges the administration to prioritize the following as part of its AI action plan:

  • A “dual workforce strategy”: “The AI Action plan should make enhanced access to, and support for the development of, science, technology, engineering and mathematics (STEM) education programs throughout the country, at both the K-12 and higher education levels, a national priority … and increas[e] the allowable number of advanced degree STEM graduates for employment-based visa categories, in particular among lawful permanent residents.”
  • Permitting reform and existing energy generation: The plan should endorse expedited judicial review and permitting processes for energy generation projects, working “with stakeholders to identify ways that the projected increase in demand growth can be leveraged to lower the cost curve of traditional light-water [nuclear] reactors” and look closely at the role of natural gas as a source of baseload power for the data center sector.
  • Privacy and security: Work “with Congress to pass a national privacy law that fully preempts the growing patchwork of state laws, protects individuals’ privacy and provides much needed legal clarity to support continued innovation and competitiveness.”
Policy and Legal

Vance: Manufacturing Will See Renaissance Under Trump

Manufacturing in the U.S. will experience a renaissance under President Trump, Vice President JD Vance said Friday in an NAM-attended speech at Vantage Plastics in Bay City, Michigan.

What’s going on: Vice President Vance—whose talk was part of the Small Business Administration’s recently announced multistate Made in America Manufacturing Initiative and Made in America Roadshow—told the crowd of employees at the plastics processing facility that America’s achievements are contingent on the achievements of its manufacturers.

  • “I really do believe that America’s success depends on the success of companies like Vantage Plastics,” he said. “And I don’t mean that in some abstract, poetic-sounding sense; I mean it literally. If we do not protect our nation’s manufacturers, we lose a fundamental part of who we are as a people. Making things, building things, working with our hands is America’s heritage, and that heritage is alive and well in this facility.”
  • Vantage Plastics President Paul Aultman agreed. “Imagine how much stronger this country would be if every manufacturer—large and small, in cities and towns across America—had the tools to build, expand and succeed,” Aultman said. “Manufacturing is the backbone of America, and on shop floors like ours, we’re not just making products—we’re making the future.”

Relief from the onslaught: The Trump administration intends to protect manufacturers and in doing so, touch off a gilded age for the industry—by unburdening it of the many regulations that have been heaped upon it, said Vice President Vance.

  • “The Trump administration is working hard to slash regulations left and right. … We’ve got to make it easier to build stuff in our own country. We can’t have people telling our great builders that if they want to start a factory or if they want to expand a factory, they’re not allowed to,” he said, echoing longtime NAM advocacy, backed by manufacturer surveys and data. “And that is the biggest thing, I think, the Trump administration is working on when it comes to renewing American manufacturing.”
  • SBA Administrator Kelly Loeffler, who spoke prior to Vice President Vance at the event, sounded a similar note, saying, “The golden era of manufacturing in America is not behind us; it’s in front of us” (Detroit Free Press).

Energy unleashed: Vice President Vance discussed the administration’s NAM-supported move last week to review dozens of burdensome Environmental Protection Agency regulations.

  • “These include the Greenhouse Gas Reporting Program, which cost U.S. factories and power plants hundreds of millions of dollars,” the vice president continued. “And that money is now going to be reinvested in American workers. And we remember the Clean Power Plan 2.0, which has imperiled America’s grid by creating impossible restrictions on coal and natural gas plants that account for 60% of our power. You can’t tell people to build in America while at the same time destroying American energy.”

A new path forward: Under President Trump, American manufacturing will have room to thrive, the vice president went on.

  • “We are done overregulating American businesses. We are going to be guided by a simple principle: Build in this country. We cut your taxes, we reduce your regulation and we reduce your energy costs. Build in this country. Make American manufacturing great again. And we are going to fight for you—and the president will, too.”
  • “Our goal is to make it easier and more affordable to make things again in the United States of America,” he said. “If you invest in American jobs and workers and businesses, you will be rewarded. We will cut your taxes, we will slash regulations and reduce the cost of industry in this country we all love.”

The last word: “President Trump and Vice President Vance understand what manufacturing means to America—not just in economic terms, but also in human terms,” NAM President and CEO Jay Timmons said.

  • “But we can only reach our full potential with the type of leadership that will make the 2017 tax reforms that were rocket fuel for the manufacturing industry permanent, rebalance the regulatory framework, expedite permitting reform to unleash American energy, grow the manufacturing workforce and implement sensible trade policies. That’s how we make America strong, prosperous and proud. That’s how we will Make America Great for Manufacturing Again.”
Policy and Legal

New House AI, Energy Working Group Issues RFI

The newly established House of Representatives’ AI and Energy Working Group is seeking information on the increase in energy demand we can expect due to the growing use of artificial intelligence (POLITICO Pro, subscription).

What’s going on: Group lead Rep. Julie Fedorchak (R-ND)—who was North Dakota’s head utility regulator for more than a decade prior to being elected to Congress last year—discussed the new working group with us Tuesday at NAM headquarters.

  • Rep. Fedorchak spoke at an event at the NAM on how the U.S. can strengthen the electrical grid, advance permitting reform and support manufacturers investing in the latest energy technologies.
  • The working group issued a request for information on Monday, “invit[ing] stakeholders to provide written responses” to questions under “three pillars,” according to the RFI document.

The details: These pillars are the following:

  • American Energy Dominance and AI Energy Demands: The RFI “seeks to identify strategies to secure a stable, affordable and sustainable domestic energy supply capable of powering next-generation AI infrastructure.” Subtopics on which respondents are asked to inform the working group include oil and gas, nuclear, solar, geothermal and other power production methods.
  • Securing the Energy Grid: A resilient, secure electrical grid is “essential” for AI systems and the larger “digital economy,” the document says. Permitting reform, electricity generation and baseload power are possible subtopics here.
  • Strategic Competition: Outpacing China: “In an era of intensifying global rivalry, ensuring American technological and energy leadership is critical.” Some of the subtopics under this pillar are manufacturing, critical minerals and chips. 

Why it’s important: “To be AI dominant, we must first be energy dominant,” Rep. Fedorchak said in a statement, according to POLITICO Pro.

  • “In 2024, data centers accounted for 4.3% of total U.S. power demand, and analysts predict this could climb to as much as 12% by 2030—more electricity than the entire state of Texas uses today. Yet the U.S. isn’t scaling up reliable baseload power quickly enough to support this rapid growth.”

How to respond: Responses are due by May 15 and should be emailed to [email protected].

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].

Workforce

Women MAKE Awards to Honor Outstanding Women in Manufacturing

The Manufacturing Institute—the workforce development and education affiliate of the NAM—has announced the recipients of the 2025 Women MAKE Awards, honoring some of the most impressive and inspiring women in the manufacturing industry today.

The awards, which will take place in Washington, D.C., on April 24, will highlight 130 individuals who have demonstrated excellence and leadership in their careers across all levels of the manufacturing industry.

The challenge: The manufacturing industry faces a significant talent gap—with more than 400,000 job openings and an estimated 3.8 million positions needing to be filled by 2033.

  • Women make up about half of the U.S. labor force, but less than one-third of the manufacturing workforce. Boosting the numbers of women who choose a career in modern manufacturing is essential to closing this gap—and the honorees of the Women MAKE Awards are leading the way.

The initiative: The MI’s Women MAKE America Initiative  strengthens the modern manufacturing workforce by elevating and highlighting the women leading the industry at every level—from the shop floor to the C-suite—in order to inspire the next generation and help close the talent gap in the industry.

The awards: Each year, 100 Honorees and 30 Emerging Leaders are chosen from the thousands of nominations submitted to the MI by their peers for making significant contributions to their companies, communities and efforts to cultivate the next generation of skilled talent. Since its inception, the Women MAKE Awards have recognized about 1,700 outstanding individuals.

The MI says: “Every year, more women are finding opportunity and breaking barriers in manufacturing,” said MI President and Executive Director Carolyn Lee. “By elevating these outstanding women for their success, we are showing young women—and everyone else—that manufacturing is a rewarding industry with unlimited potential.”

  • “At a time when there is such high demand for talent in our sector, these extraordinary women demonstrate the impactful careers that are available. By elevating role models who are paying it forward, the Women MAKE Awards strengthen the future of the industry by inspiring the next generation.”

Manufacturing leaders say: “With hundreds of thousands of open jobs in manufacturing, it has never been more critical to attract and retain top talent,” said Toyota Senior Vice President of Electric Vehicle Supply Susan Elkington.

  • “This year’s Women MAKE Honorees and Emerging Leaders are breaking barriers, leading with innovation and proving there is no limit to what they can achieve in our industry. By amplifying their stories and accomplishments, we inspire others to step into manufacturing and shape its future.”

Learn more: Read about the awardees and learn more about the awards gala.

Policy and Legal

Lilly: 2017 Tax Reform Makes Four New U.S. Manufacturing Sites Possible

Biopharmaceutical company Lilly will build four new manufacturing sites across the U.S., it announced Wednesday at a Washington, D.C., press conference. The event was attended by NAM President and CEO Jay Timmons, Commerce Secretary Howard Lutnick, National Economic Council Director Kevin Hassett, Indiana Sen. Todd Young and Lilly Executive Vice President and President of Manufacturing Operations (and NAM board member) Edgardo Hernandez, among others.

What’s going on: Three of the planned manufacturing campuses will focus on producing active pharmaceutical ingredients, reshoring “critical capabilities of small molecule synthesis and further strengthening Lilly’s supply chain,” the company said in a press release. The fourth site will “extend [Lilly’s] global parenteral manufacturing network for future injectable therapies.”

  • The investment in the four sites will bring Lilly’s total U.S. capital expansion commitment to more than $50 billion since 2020.
  • Lilly—which in recent years has made $23 billion worth of investments in new research and manufacturing sites in the American South and Midwest—is in talks with several states about building the facilities there, but it is accepting additional expressions of interest from states until March 12.

The anticipated benefit: The four sites are expected to create more than 3,000 permanent skilled jobs and more than 10,000 construction jobs during building, according to the company.
 
The tax reform factor: Lilly’s planned expansion reflects “decades of research and dedication,” Timmons said at the event announcing the investment. It “is the culmination of sustained planning made possible by the certainty created through smart public policy—particularly the 2017 tax reforms that President Trump … championed back at a meeting of the NAM Board of Directors in September 2017.”

  • Many of those manufacturing-critical reforms have been allowed to expire, however, and others will expire at the end of the year—unless Congress acts, and soon, Lilly Chair and CEO David Ricks said.
  • “The Tax Cuts and Jobs Act legislation passed in 2017 during President Trump’s first term in office has been foundational to Lilly’s domestic manufacturing investments, and it is essential that these policies are extended this year.”

Keep the momentum going: Lilly’s announcement shows other manufacturers “exactly why [they] have reason for optimism and confidence,” Timmons went on. “But to keep this momentum going—to encourage more groundbreaking investments, more job creation and more life-changing innovation—a comprehensive manufacturing strategy must become the reality … because when manufacturing wins, America wins.”

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.

Workforce

The State of the Manufacturing Workforce in 2025

The NAM kept up a breakneck pace on the third day of its 2025 Competing to Win Tour, with the Manufacturing Institute delivering the first-ever State of the Manufacturing Workforce Address at Drake State Community and Technical College in Huntsville, Alabama, before an audience of students, faculty, manufacturers and local and state officials.
 
Opportunity—for all: Taking the stage to give the MI’s assessment of the manufacturing worker base in 2025, Carolyn Lee, president of the Manufacturing Institute, the NAM’s 501(c)3 workforce development and education affiliate, homed in on the theme of opportunity.

  • “Manufacturing is not just about innovation and economic growth; it’s about opportunity. It’s about ensuring that every community, every aspiring maker, builder and creator—no matter their background—can have access to the skills, training and careers that will define the future.”
  • But because the industry stands at a crossroads, part of that opportunity today is to help manufacturing maintain its momentum, Lee said, echoing a theme of NAM President and CEO Jay Timmons’ 2025 State of Manufacturing Address on Tuesday.

Finest hours ahead: Lee was joined at the event by Rep. Dale Strong (R-AL), who spoke about the strength of Alabama’s manufacturing sector.

  • “I think we’ve proven here in Alabama, and North Alabama especially, advanced manufacturing is part of our DNA,” he said. “You look at the jobs that we’ve brought in the last 10 or 15 years. You start with GE Aviation, Polaris, Toyota Motor Manufacturing, Mazda Toyota. We’ve proven that the Alabama workforce has the ability. I think our finest hours are still ahead.”

A world-changing job: Timmons echoed that sentiment. “You’re stepping into one of the most important and innovative fields in the world,” he told the Drake State students.

  • “The products, the materials, the technologies that you will help create, they won’t just be used in your hometown or even all across our country. They’re going to help change economies … They’re going to strengthen the very foundation of America’s security and prosperity.”

A shortfall: But manufacturing today faces an immense challenge, Lee told the crowd: “a structural workforce deficit.”

  • “[I]f we don’t act boldly, the U.S. faces a shortfall of 1.9 million manufacturing workers by 2033; 3.8 million positions will open up, but nearly half could go unfilled. That’s not just a workforce issue—it’s an economic and national security issue.”
  • That’s despite the average annual earnings—including pay and benefits—for a manufacturing employee coming in at more than $102,000.
  • The dearth of workers in the sector is driven by both retirements and growth.

How to overcome it: “[W]e have to inspire more Americans to see themselves in manufacturing,” Lee said. “That starts early, with programs that spark curiosity and excitement for careers in our industry. And when I say early, I mean as young as 9 or 10 years old—because today’s 4th graders will graduate in 2033 and may be our future team members.”

  • To this end, the MI partners each year with manufacturers on MFG Day, which kicks off a full month of events at which companies show young people, students and job seekers what a modern manufacturing career looks like.
  • The MI, with the support of Honda, has also created a new interactive experience to interest youngsters in the industry: “Innovators Quest,” which combines elements of board games and popular fantasy and storytelling activities.

The FAME factor: Under the MI’s auspices, the Federation for Advanced Manufacturing Education USA, a workforce program started by Toyota in 2010 and entrusted to the MI in 2019, has grown considerably. (Drake State is home to one of the public–private partnership’s newest chapters.)

  • FAME participants attend classes and earn while they learn in hands-on apprenticeships with manufacturers.
  • The program—in which a participant can easily earn more than $30,000 over two years—has become “the gold standard for how employers, educators and communities should work together” on manufacturing workforce training, Lee said.

Other efforts: The MI helps manufacturers actively recruit groups often overlooked in manufacturing hiring initiatives: veterans, women and previously incarcerated individuals.

  • The Heroes MAKE America program helps connect former members of the military with manufacturing jobs. Walmart provides crucial funding to the program; in 2022, it gave a six-figure grant to fund the development of a model that translates skills acquired in the military to ones recognized by manufacturing employers.
  • The Women MAKE America Initiative is the nation’s premier program aimed at closing the gender gap in the sector.
  • “The MI is helping manufacturers develop second chance hiring strategies, recognizing that talent is talent—and potential shouldn’t be wasted,” Lee said to the audience.

Working together: “As we look ahead, manufacturers, educators and policymakers must work together to strengthen our talent pipeline,” Lee and Drake State Community and Technical College President Dr. Patricia G. Sims wrote in a Thursday op-ed for the Alabama Political Reporter
 
Manufacturing in Alabama: On Thursday afternoon, the NAM and MI contingent continued its manufacturing-facility tour, visiting Toyota Motor Manufacturing Alabama and Bruderer Machinery—both in Huntsville—and Milo’s Tea Company in Bessemer.

  • “I plan on making my career here,” said Drew, a 2024 FAME graduate, during a discussion before a tour of the shop floor. Drew is now working as a maintenance team member at Toyota Alabama. The talk focused on how the FAME program prepared participants for a rewarding career in auto manufacturing. Toyota Alabama—2,400-plus team members strong—has created 10,000 jobs in the state.
  • Lee visited Bruderer Machinery, a leading manufacturer of high-precision stamping presses that provides solutions for the automotive, aerospace and electronics industries. Bruderer is also a key supporter of the FAME apprenticeship model.
  • Timmons and the rest of the NAM team finished the day at Milo’s Tea, the fastest-growing tea company in America. The family-owned business, founded by CEO Tricia Wallwork’s grandparents Milo and Bea Carlton, has won 40% of the refrigerated iced tea market share in the U.S. “This reminded me of my grandmother’s iced tea,” said Timmons. “You could see how special Milo’s is by just walking the shop floor and seeing the smiles and camaraderie.”   
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.”
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