Innovation and Technology

With the backing of major HVAC manufacturers, start-ups are working to make air conditioners that are capable of easing the strain on the power grid, according to The Wall Street Journal (subscription).

What’s going on: “Companies such as Blue Frontier, Transaera and Montana Technologies are raising money from investors including industry giant Carrier Global … to develop more efficient technologies. Many of those efforts focus on the humidity rather than the heat, using new materials like liquid salt to dry out the air.”

Why it’s important: The number of air conditioners in use worldwide is expected to more than double by the middle of the century, to 5.5 billion, with many units likely to be inefficient.

• “Stalwarts such as Carrier and Trane Technologies say they are spending billions of dollars to offer more efficient versions of conventional ACs while evaluating the new approaches.”

A different AC unit: Traditional air-conditioning units work by converting refrigerants from gas to liquid and then back again, while circulating air with fans. They are unable to remove humidity without cooling the air, which is what makes them inefficient, according to the article.   

• “Blue Frontier aims to separate humidity and temperature control using a liquid salt solution that was developed with the National Renewable Energy Laboratory. The solution also stores energy, reducing consumption at peak times, when electricity grids are strained on hot days.
• Innovation is also required to make air conditioning affordable for people in developing nations, according to the Journal.

More investment: “The need for new approaches is pushing Carrier to make venture investments to complement its other growth strategies, said Jennifer Anderson, Carrier’s chief sustainability officer. Trane is investing in startups like data-center-cooling company LiquidStack while looking at new technology approaches, CEO Dave Regnery said.”

China’s cyber-spying capabilities are “an epoch-defining threat,” the top U.S. cybersecurity official warned this week, according to CNBC.

What’s going on: Aggressive cyber actions by China are “‘the real threat that we need to be prepared for,’ Cybersecurity and Infrastructure Security Agency Director Jen Easterly said at an appearance Monday at the Aspen Institute in Washington, D.C.”

• Easterly was answering a question about the recent discovery of Chinese cyberattacks on the U.S. military and the private sector, by a group dubbed “Volt Typhoon.”

Why it’s important: The U.S. should expect groups like Volt Typhoon to try to target pipelines and railways, Easterly said, adding, “It’s going to be very, very difficult for us to prevent disruptions from happening.”

The backdrop: Tensions have escalated between China and the U.S., leading to greater concern about attacks.

• “Fending off cyber threats from China and Asia has become a top priority for the U.S. government, which has begun to describe in clearer and blunter terms the links between the Chinese government and myriad hacking groups.”

UL Solutions broke ground on its North America Advanced Battery Laboratory in Auburn Hills, Michigan, yesterday—with the NAM in attendance! The new facility will offer testing and certification for EVs and industrial batteries, a crucial step in establishing EV-ecosystem hubs.

A Charlotte, North Carolina–based company that started life as a paper mill is now the world’s largest lithium producer—and “a key cog in a tight global supply chain for battery metals used in electric cars, smartphones and other applications at a time when governments are pushing to electrify their economies,” according to The Wall Street Journal (subscription).

What’s going on: Albemarle is one of the few companies that can produce lithium at a competitive cost, thanks in large part to its 2015 purchase of a lithium producer in New Jersey.

• The global lithium market has grown an enormous 2,900% since that purchase, to $48 billion from $1.6 billion.
• To keep up with demand, “Albemarle has embarked on new acquisitions and capacity building,” including an ongoing bid to purchase Australian lithium miner Liontown Resources.
• Last month, Albemarle—which also mines lithium at operations in Nevada and Chile—announced plans to double the capacity of a lithium hydroxide plant in Western Australia in which it has an 85% stake.
• Lithium is also used in “industrial-scale batteries that can store energy from solar panels and wind farms and smaller ones for residential use.”

Competing with China: The company’s “integrated approach has put it at the center of Western efforts to diversify supply lines” to counter China’s dominance in the electric-vehicle market.

• “China has emerged as a global leader in EV production and is spending billions to boost its access to lithium-mine production globally. Meanwhile, it dominates the business of refining lithium extracted elsewhere in the world. The West is trying to catch up.”

What’s next: Last fall, the Department of Energy gave Albermarle a grant of nearly $150 million to produce EV batteries.

• In March, the company said it would spend more than $1.3 billion on a lithium-processing plant in South Carolina.

Some manufacturers are reconsidering their dependence on China in the face of growing security concerns and worries about potential military conflicts, according to The Wall Street Journal (subscription).

What’s going on: “Executives are plotting alternate supply chains or devising products that can be made elsewhere should China’s hundreds of thousands of factories become inaccessible. That prospect became more conceivable, they said, after the 2022 invasion of Ukraine prompted companies to sever ties with Russia, sometimes taking huge write-downs.”

• China’s government recently banned key Chinese firms from purchasing products made by U.S. semiconductor firm Micron Technology, saying the company posed a national security risk to China.

Why it’s important: “China’s access to raw materials and ability to produce components for finished goods remains unmatched, and its dense supplier networks have yet to be replicated elsewhere.”

What manufacturers are doing: Some manufacturers that rely heavily on China for revenue and inputs are using extra discretion when it comes to their data and intellectual property in that country.

• Manufacturers’ caution levels have risen since April, when China revised an espionage law that lets its authorities inspect the facilities and electronic equipment of any companies they suspect of spying.
• Some manufacturers are aiming to assemble new supply chains to circumvent China. These companies are “brac[ing] for higher prices and slower service than [they receive] in China” but “won’t be cut off by the threat of war or a trade embargo.”​​​​​​​

Indianapolis, Indiana – The National Association of Manufacturers, the Manufacturing Institute, the workforce development and education affiliate of the NAM, and Snap-on Incorporated are bringing the industry-leading Creators Wanted campaign to the Indianapolis Motor Speedway.

The Creators Wanted Tour is on-site at Fan Midway by the IMS Kids Zone on Friday, May 26, and Saturday, May 27, from 8:00 a.m. to 3:00 p.m. EDT and Sunday, May 28, from 6:00 a.m. to 12:30 p.m. EDT. The Creators Wanted Tour brings the excitement of modern manufacturing to life for all ages, with an immersive experience (an escape room–style activity) that challenges participants to race to the future and with resources to help younger race fans and their families explore how they can be part of creating, making, tinkering and building in the United States.

The manufacturing industry in the United States has approximately 700,000 open jobs. Creators Wanted strives to, by 2025, empower 600,000 new manufacturing team members, increase the number of students enrolling in technical and vocational schools or reskilling programs by 25% and increase the positive perception of the industry by parents to 50% from 27%.

“‘Creators Wanted’ is a critical message to all young people, parents, caregivers and educators across our country,” said Snap-on Chairman and CEO, NAM Executive Committee Member and MI Board Member Nick Pinchuk. “Snap-on is proud to bring the Creators Wanted Tour to the IMS and the Indianapolis 500 showing younger race fans and their families that manufacturing is an exciting place where the opportunities are many, the careers are rewarding and the lives are filled with the pride of being part of something greater than yourself.”

Since its launch in 2021, the Creators Wanted Tour has visited 16 cities, reaching more than 9,000 students in person, along with more than 2,400 parents, teachers, mentors and local leaders. The campaign has also built an email roster of more than 1.2 million students and career mentors interested in manufacturing careers.

“The world’s largest single day sporting event meets the nation’s largest manufacturing campaign—and it’s going to rev up enthusiasm about modern manufacturing in a big way with more students and their families,” said NAM President and CEO and MI Chairman of the Board Jay Timmons. “Together with our partners like Snap-on, we’re building excitement about modern manufacturing careers and providing the resources for people to reach their full potential.”

Indiana Manufacturing Facts:

• There were 23,936 total manufacturing job postings in Indiana from January 2023 to March 2023. In addition, there were 84,904 unique manufacturing job postings from January 2022 to December 2022.

The NAM will continue its Creators Wanted Tour with stops across the country. For more information on the campaign, visit CreatorsWanted.org.

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.90 trillion to the U.S. economy annually and accounts for 55% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

-The MI-

The Manufacturing Institute grows and supports the manufacturing industry’s skilled workers for the advancement of modern manufacturing. The MI’s diverse initiatives support all workers in America, including women, veterans and students, through skills training programs, community building and the advancement of their career in manufacturing. As the 501(c)3 nonprofit workforce development and education affiliate of the National Association of Manufacturers, the MI is a trusted adviser to manufacturers, equipping them with resources necessary to solve the industry’s toughest challenges. For more information on the MI, please visit www.themanufacturinginstitute.org.

-Snap-on-

Snap-on Incorporated is a leading global innovator, manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions for professional users performing critical tasks, including those working in vehicle repair, aerospace, the military, natural resources and manufacturing. From its founding in 1920, Snap-on has been recognized as the mark of the serious and the outward sign of the pride and dignity working men and women take in their professions. Products and services are sold through the company’s network of widely recognized franchisee vans, as well as through direct and distributor channels, under a variety of notable brands. The company also provides financing programs to facilitate the sales of its products and to support its franchise business. Snap-on, an S&P 500 company, generated sales of $4.5 billion in 2022 and is headquartered in Kenosha, Wisconsin.

For additional information on Snap-on, visit www.snapon.com.

When service members leave the military, manufacturers are quick to say: “Come on over!” Military skills are usually a great match for manufacturing careers, which require attention to detail, technical abilities and creative thinking. And there’s no better matchmaker than the Manufacturing Institute’s Heroes MAKE America initiative, which since 2018 has been offering training certification programs and career courses to transitioning service members and veterans.

Today, HMA not only serves service members on military installations across the country but has also expanded its reach via a virtual training program.

Widening the reach: Now in its second year, the virtual training program has allowed HMA to impact service members on a national scale.

• For the first time, members from four branches—Army, Air Force, Marine Corps and Navy—are participating in the same class at the same time.
• Additionally, the geographic range of participants has increased to comprise students located far and wide, including in Alaska, Arizona, Delaware, Kansas and Kentucky.
• The program has reached more than 120,000 prospective students through local transition assistance, HMA’s LinkedIn and Facebook presence and the SkillBridge website.

How it works: HMA partnered with Texas State Technical College to create a virtual nine-week training and certification program.

• Participants earn nationally portable, industry-recognized Certified Production Technician certification as well as an OSHA 10 certification.
• Through Heroes Connect, HMA also partners with sponsors like Johnson & Johnson, The Caterpillar Foundation, Amazon, Howmet Aerospace, WestRock, Saint-Gobain, Atlas Copco, Cargill, FUCHS Lubricants Company, C.H. Guenther & Sons, Honda Foundation, Niagara Bottling and the NAFEM, PPI and SEMI Associations to connect program graduates and members of the military community with manufacturers.

What we’re saying: “It’s exciting to see members from four branches of the military all in one virtual classroom together,” said Heroes MAKE America Senior Program Manager Katie Bowerman. “There’s a lot of strength in that kind of diversity.”

Spread the word: Do you have jobs for which HMA students might qualify, or know of a service member who would want to join the program? The HMA virtual program is open to any transitioning service member who is in their last six months of active-duty service, as well as to veteran and active-duty military spouses. For more information, contact [email protected].

When service members leave the military, manufacturers are quick to say: “Come on over!” Military skills are usually a great match for manufacturing careers, which require attention to detail, technical abilities and creative thinking. And there’s no better matchmaker than the Manufacturing Institute’s Heroes MAKE America initiative, which since 2018 has been offering training certification programs and career courses to transitioning service members and veterans.

Today, HMA not only serves service members on military installations across the country but also has expanded its reach via a virtual training program.

Widening the reach: Now in its second year, the virtual training program has allowed HMA to impact service members on a national scale.

• For the first time, members from four branches—Army, Air Force, Marine Corps and Navy—are participating in the same class at the same time.
• Additionally, the geographic range of participants has increased to comprise students located far and wide, including in Alaska, Arizona, Delaware, Kansas and Kentucky.
• The program has reached more than 120,000 prospective students through local transition assistance, HMA’s LinkedIn and Facebook presence and the SkillBridge website.

How it works: HMA partnered with Texas State Technical College to create a virtual nine-week training and certification program.

• Participants earn nationally portable, industry-recognized Certified Production Technician certification as well as an OSHA 10 certification.
• Through Heroes Connect, HMA also partners with sponsors like Johnson & Johnson, The Caterpillar Foundation, Amazon, Howmet Aerospace, WestRock, Saint-Gobain, Atlas Copco, Cargill, FUCHS Lubricants Company, C.H. Guenther & Sons, Honda Foundation, Niagara Bottling and the NAFEM, PPI and SEMI associations to connect program graduates and members of the military community with manufacturers.

Read the full story here.

China, which already commands most of the world’s lithium refining, is undertaking “a risky strategy” in an effort to lay claim to more of the metal globally: buying stakes in mines located in developing nations, according to The Wall Street Journal (subscription).

What’s going on: “China is spending billions on stakes in nations that have histories of political instability, local resistance and resource nationalism. Projects often face protests, regulatory delays and even cancellations. If China succeeds, however, it could secure access to one-third of the world’s lithium-mine production capacity needed by 2025, according to industry estimates.”

• Canada and Australia, which hold among the world’s largest lithium reserves, recently put an end to new Chinese investments in critical minerals.

Why it’s important: Lithium is a critical component of batteries used in electric vehicles and smartphones—and demand for the mineral could outstrip supply significantly by the end of the decade.

A precarious investment: To ensure sufficient lithium stock to power its EV industry (particularly as tensions with the U.S. rise), China has acquired stakes in close to 20 mines throughout Latin America and Africa.

• Some of the countries in which the mines sit face the risk of terrorist attacks, while others have a history of revoking agreements made with foreign firms.

However … China has some advantages over Western nations when it comes to securing lithium from South American and African nations.

• “CATL, for example, is a battery behemoth, with the political backing of Beijing and a strong network of companies along the supply chain.
• Developing nations often want to partner with Chinese firms that also do processing, refining or battery making, because they believe such companies will better guarantee them steady streams of income. ​​​​​​​

Why is China winning the electric-vehicle production race? Because it controls or dominates every step of the process of making EV batteries, according to The New York Times (subscription).

What’s going on: “Despite billions in Western investment, China is so far ahead—mining rare minerals, training engineers and building huge factories—that the rest of the world may take decades to catch up.”

• Rare minerals: China owns the majority of the cobalt mines in Congo—where most of the world’s supply of the metal sits—and it controls most of the world’s lithium mining.
• Refining: “Regardless of who mines the minerals, nearly everything is shipped to China to be refined into battery-grade materials.”
• Components: China produces more EV batteries than any other country, which it managed “partly by figuring out how to make battery components efficiently and at lower cost.”
• Final products: China boasts the most EVs on the road of any nation, and almost all of them use batteries made domestically.

Why it’s important: Now, eight years after the Chinese government instituted policies to bar foreign competitors from the EV market and increase consumer demand, “the Biden administration … [is] pursuing a similar strategy to foster battery development in the United States. But in a business with huge capital costs and thin profit margins, Chinese companies have a big head start after years of state funding and experience.”