Innovation and Technology

How should companies design R&D teams and processes to create the best possible results? That’s the challenge that Babson College Professor of Innovation Management Gina O’Connor addressed in her talk at the Innovation Research Interchange’s annual conference back in June. The IRI is a division of the NAM that advances the field of innovation management by creating contemporary practices—in R&D and many other areas.

A common problem: In an extensive research project at Babson College, O’Connor worked with experts from Goodyear, Synthomer and Diageo to study companies and decipher best R&D practices. She noticed a recurring theme: R&D professionals were being used by companies to solve urgent technical issues rather than to discover and invent.

• “In many organizations R&D has this feeling of being an order taker and of having to solve problems that are finely tuned and narrowly scoped,” said O’Connor. “That erodes confidence—and eroded confidence reduces empowerment.”

Empowerment and autonomy: O’Connor described empowerment as the authority to determine which projects and initiatives to take on and what problems to tackle. Meanwhile, autonomy refers to the authority to make final decisions.

• So, what do R&D professionals need? According to O’Connor, most want a moderate amount of empowerment, but not complete control over what to do.
• “We want to make sure that there’s organizational commitment somewhere associated with what we are doing, but we don’t just want to be told what to do,” as she put it.

So, what works? O’Connor explained that organizations with structureless R&D systems often had erratic decision making, sudden disruptions and unexpected changes in direction that left employees feeling powerless.

• Similarly, organizations with R&D processes that were too formal were also alienating to employees, who felt there wasn’t any room for flexibility or discussion.
• In contrast, the best systems included strong project leaders, consistent back and forth between the R&D group and organizational leadership, constructive communication, clearly outlined goals and trust in employees.

A last piece of advice: Training and developing project leaders is among the most essential steps in achieving successful R&D, said O’Connor.

• “What you need to be doing as a team leader every day is checking in with every member of your team, seeing what they need, where they are, what has happened,” said O’Connor. “It has to be an interactive, interpersonal kind of a thing.”

Learn more: Head on over to the IRI website to check out more of its programs and events.

Washington, D.C. – Following President Biden’s signing of the CHIPS and Science Act of 2022, National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“Every manufacturer in America will benefit from the CHIPS and Science Act, whether they make chips, make products that require chips or are part of a supply chain disrupted by the semiconductor shortage.

“Manufacturers thank congressional leaders from both parties who got this bill across the finish line and President Biden and Secretary Raimondo for their leadership. The industry will also benefit from the new law’s funding for programs to support the STEM workforce, advanced technology development, excavation of critical minerals, clean energy and more.

“Without a doubt, this legislation boosts manufacturers’ competitiveness. But there’s work to be done. Congress must continue its work on China competition legislation and move forward on policies from the U.S. Innovation and Competition Act and the America COMPETES Act that were left out, such as anti-counterfeiting measures, important trade provisions and further investments in supply chain resilience and workforce development.

“Our economic future and America’s leadership in the world depend on a competitive manufacturing industry. Congress has acted wisely with the CHIPS and Science Act. Now we need Congress to continue standing with manufacturers and focus on policies that will help us compete with China and other countries, not make it more expensive to make things in America.”

-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 more than 12.8 million men and women, contributes $2.77 trillion to the U.S. economy annually and accounts for 58% 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.

President Biden has signed into law the CHIPS and Science Act of 2022, legislation that promises to bolster manufacturers’ competitiveness, according to the NAM.

Supercharging manufacturing: “The CHIPS and Science Act [is] a once-in-a-generation investment in America itself, a law that people in America can be proud of,” Biden said today. It “supercharges our efforts to make semiconductors here in America. … [We] must lead the world in the production of these chips. This law will do exactly that.”

• NAM President and CEO Jay Timmons was on hand for the signing, along with many other business leaders.
• “Manufacturers thank congressional leaders from both parties who got this bill across the finish line and President Biden and Secretary Raimondo for their leadership,” Timmons said following the signing.

The background: The bipartisan measure, previously called the CHIPS-Plus Act, was passed by the U.S. Senate and House of Representatives in July. It provides more than $52 billion in funding to semiconductor manufacturing and scientific research.

• “Every manufacturer in America will benefit from [this legislation], whether they make chips, make products that require chips or are part of a supply chain disrupted by the semiconductor shortage,” Timmons said.

Other components: In addition to provisions for the domestic manufacturing of semiconductor chips, the CHIPS and Science Act also:

• Supports new research on critical minerals;
• Increases funding for the Department of Energy’s Office of Science, the National Science Foundation and the National Institute of Standards and Technology;
• Sets new policies for sending humans back to the moon and ultimately to Mars; and
• Expands rural STEM education.

Still work to do: Though the legislation will be a boon to manufacturers, it omits solutions to some critical challenges facing the U.S., Timmons said. These include:

• China competition legislation;
• Anti-counterfeiting measures;
• Critical trade provisions; and
• Further investments in supply chain resilience and workforce development.

Why it’s crucial: “Our economic future and America’s leadership in the world depend on a competitive manufacturing industry,” Timmons continued.

• “Congress has acted wisely with the CHIPS and Science Act. Now we need Congress to continue standing with manufacturers and focus on policies that will help us compete with China and other countries, not make it more expensive to make things in America.”

Washington, D.C. – Following the release of the text of the Inflation Reduction Act, NAM President and CEO Jay Timmons released the following statement:

“The NAM remains staunchly opposed to the IRA. It increases taxes on manufacturers in America, undermining our competitiveness while we are facing harsh economic headwinds such as supply chain disruptions and the highest rate of inflation in decades.

“We appreciate that the ‘book tax’ has been revised to reflect the importance of job-creating investments in machinery and equipment. But that is insufficient. These new taxes will still deliver a blow to our industry’s ability to raise wages, hire workers and invest in our communities. In addition, the proposed direct negotiations over prescription drugs are a form of price setting and antithetical to the open marketplace of the Medicare Part D program. Pursuing price control policies could threaten future innovation and cures.

“Any desirable elements of this bill can and should be pursued as standalone legislation. As a whole, the bill simply does not position our industry or our country for future growth or global economic leadership and competitiveness, so we urge all lawmakers to stand with us and reject it.”

-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 more than 12.8 million men and women, contributes $2.77 trillion to the U.S. economy annually and accounts for 58% 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.

Washington, D.C. – Following the Senate’s passage of the CHIPS-Plus Act, National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“The CHIPS-Plus Act will deliver a powerful boost to manufacturers’ competitiveness. Manufacturers across all sectors rely on access to chips, so this bill will help strengthen American supply chains thanks to its investments in domestic semiconductor production—as well as its funding for programs to support the STEM workforce, advanced technology development, excavation of critical minerals, clean energy and more. Manufacturers have worked with lawmakers for more than a year to advance many provisions of this bill, and we urge the House to pass it as quickly as possible and get it to President Biden’s desk.

“CHIPS-Plus should only be the beginning, however. We will continue advocating policies needed to beat back economic headwinds such as inflation and supply chain disruption. And we will work with Congress to move quickly on policies from the U.S. Innovation and Competition Act and the America COMPETES Act that were left out of CHIPS-Plus, such as anti-counterfeiting measures, important trade provisions and further investments in supply chain resilience and workforce development.

“It’s encouraging to see this Congress once again come together in a bipartisan way to make critical investments in our industry’s competitiveness and our country’s future. Manufacturers look forward to building on this progress. This and future China competition legislation will help us to innovate, create jobs, expand domestic operations and grow the U.S. economy for years to come.”

-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 more than 12.8 million men and women, contributes $2.77 trillion to the U.S. economy annually and accounts for 58% 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

Heading to the beach? Take along the Manufacturing Leadership Council’s summer reading list to catch up on today’s top trends in digital manufacturing while you catch some rays. With these articles, you’ll discover new ideas, technologies and best practices to give your company a competitive edge.

Workforce: Leading the Way to Workforce Optimization. As digitization changes employees’ expectations of their employers, manufacturers must adapt. Examples include options for remote work, interactive training, agile and rapid collaboration platforms, career development, work-life balance and more.

Industrial automation: Camozzi’s Autonomous Vision. Successful autonomous manufacturing will depend on the fundamental relationship between humans and machines, says Camozzi Group CEO Lodovico Camozzi, whose company makes industrial machinery. In a recent interview with the MLC, Camozzi shared his view of manufacturing’s autonomous future, including:

• How advanced additive manufacturing approaches promise new production paradigms;
• The importance of collaboration in driving innovation and excellence; and,
• Why the industry must maintain a human focus in today’s digital world.

Cybersecurity: Ransomware Attacks Increasingly Targeting Manufacturers. Think your business is safe from hackers? Think again. Ransomware attacks against manufacturers are on the rise. All businesses should be on guard against cyber extortion, advises Peter Vescuso, vice president of marketing for industrial cybersecurity provider Dragos and a member of the MLC.

Supply chain: How Manufacturers Can Navigate Supply Chain Challenges.
As global supply chain woes, worker shortages and wage inflation challenges intensify, manufacturers everywhere want to know the best way to navigate them. In this article, a panel of industry experts shares top tips to sustainably and profitably overcome current obstacles.

Artificial Intelligence: AI Roadmap: How Manufacturers Can Amplify Intelligence with Artificial Intelligence. Artificial intelligence offers manufacturers a host of benefits, including better visibility into supply chains, insights from predictive analytics and the ability to quickly respond to unexpected changes in demand. A six-step road map can help manufacturers looking to integrate AI into their businesses.

5G: 5G Will Help Unlock M4.0’s Potential. 5G technology offers speed and capacity advantages to manufacturing companies. According to the MLC’s recent Transformative Technologies survey, 26% of manufacturers have already invested in 5G technology. More than half expect to invest or are considering investing in the technology over the next two years to take advantage of 5G’s benefits.

Sustainability: Overcoming Roadblocks to Advance Sustainability Programs.
The manufacturing industry is expected to improve its sustainability and keep leading the fight against climate change. However, making green changes to processes and procedures can be costly. To get the most bang out of their sustainability investments, manufacturers should focus on data-driven initiatives and indicators.

Looking for more digital manufacturing insights? Browse the Manufacturing Leadership Journal for additional information on technology, organizational structure and leadership in manufacturing’s digital era.

San Diego, California – For their work to attract and maintain the manufacturing workforce, the Illinois Manufacturers’ Association won the 2022 Leadership Award from the Conference of State Manufacturers Associations. COSMA members also serve as the NAM’s official state partners and drive manufacturers’ priorities on state issues, mobilize local communities and help move federal policy from the ground up in all 50 states and Puerto Rico.

“I am so pleased to present the inaugural COSMA Leadership Award to the Illinois Manufacturers’ Association,” said Kris Johnson, president of the Association of Washington Business and chair of COSMA. “These are challenging times, but manufacturers in America have demonstrated once again, as they have throughout our nation’s history, that they are equal to the challenge. All manufacturers should be proud of the role they have played in navigating the pandemic, and the Illinois Manufacturers’ Association should be especially proud of the innovative ways it has helped its members address the workforce challenges we have all faced. Congratulations to my friend Mark Denzler and his talented team.”

The association’s recent achievements included its $7 million Manufacturing Jobs Campaign aimed at attracting students, veterans, communities of color, women, ex-offenders and other individuals to the manufacturing sector. They were also asked by Governor JB Pritzker to co-chair the state’s Equipment Task Force during the pandemic and appointed by Chicago Mayor Lori Lightfoot to lead the B2B Recovery Group that included manufacturing, transportation and warehousing, construction and utilities companies in the state.

“Mark is more than an inspirational colleague and true friend. He is an amazing representative for Illinois’ manufacturing workers on the national stage,” said NAM President and CEO Jay Timmons. “At a time when there are more than 800,000 open jobs in our industry, we need the efforts of groups like the IMA to help us find that next generation of talent and strengthen manufacturing competitiveness so that we can continue to lead our economy and our country toward a better future.”

In this inaugural year, the COSMA Leadership Award drew many extraordinary applications, each demonstrating how manufacturing associations across the country are rising to meet workforce and supply chain challenges in new and innovative ways.

-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 more than 12.8 million men and women, contributes $2.77 trillion to the U.S. economy annually and accounts for 58% 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.

Manufacturers flocked to Florida this summer to discuss the cultures, skills and technologies necessary for digital transformation at the 2022 Rethink Summit, the signature event of the NAM’s Manufacturing Leadership Council. The MLC is the world’s first member-driven, global business leadership network dedicated to senior executives in the manufacturing industry.

The big event: The first in-person Rethink since 2019, this year’s summit drew the largest crowd since the annual event began 18 years ago.

• The conference in Marco Island, Florida, hosted some of the most innovative leaders and teams in the industry, from companies such as Pfizer, Intel, Dow, Saint-Gobain and many more.
• Participants learned about real-world advances and shared best practices in supply chain resilience, effective business cultures, machine learning, business ecosystems and more—as explained by industry experts who put these innovations into practice themselves.

The panels: Here is a quick sample from the array of manufacturing expertise on offer.

• A Pfizer case study: Pfizer Vice President of Digital Manufacturing Mike Tomasco explained how Pfizer Global Supply transformed itself from a digitally siloed operation to a world-class digital powerhouse.
• Bridging the digital divide: A panel of leaders—including Graphicast President Val Zanchuk, BTE Technologies President and NAM SMM Board Chair Chuck Wetherington and Intel Senior Director of Industrial Innovation Irene Petrick—discussed how small and medium-sized manufacturers can keep up with the digital transformation occurring throughout the industry.
• Reaching the next generation: A panel of young manufacturing leaders from Dow, Cooley Group and Saint-Gobain North America discussed what young people are looking for in manufacturing jobs, including interdisciplinary teams and lots of communications up and down the organization levels.

A week of manufacturing: The Rethink Summit was only one highlight of a week of manufacturing events put on by the MLC. The roster of events also included the MLC’s Council Day and the ML Awards Gala.

• Council Day offers MLC members the opportunity to chart the agenda for the MLC’s next year, thus influencing how the whole industry thinks about and plans for digital innovation.
• The Awards Gala spotlights companies and individuals doing incredible work to advance M4.0. The black-tie event honored leaders and companies in 11 project categories, plus the Manufacturers of the Year and Manufacturing Leader of the Year.
• This year, the MLC named Pfizer CEO Dr. Albert Bourla the Manufacturing Leader of the Year, for Pfizer’s extraordinary and ongoing contributions in fighting the COVID-19 pandemic.

The last word: “[T]he fundamental shift in our economy to doing business digitally in all industries, including manufacturing, not only continues but is gaining greater speed and urgency,” said MLC Co-Founder David R. Brousell during an address at Rethink.

 Join us next year: Keep up to date with the MLC by visiting the website and stay tuned for Rethink 2023!

Washington, D.C. – Ahead of consideration of legislation to bolster U.S. semiconductor manufacturing, National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“A vote for the CHIPS Act funding is a vote for a stronger, more competitive manufacturing industry in America. But if Congress fails to pass this investment in the coming days, they will hand other countries a competitive advantage and weaken our own economy at a precarious moment.

“Other provisions of the China competition bill still under negotiation also need to make it to the president’s desk, and manufacturers firmly support their inclusion in this package. We will continue our advocacy for the anti-counterfeiting measures, trade provisions, supply chain investments and more. Congress must get those done.

“This week, we can take a powerful step forward with chips funding and move toward a future where semiconductor shortages—and the disruptions they’ve created—are a thing of the past. Other nations are not waiting around to ramp up semiconductor manufacturing. America should be leading, not falling behind.”

Background:

According to the NAM’s latest Manufacturers’ Outlook Survey, more than 88% of respondents said it was important for the federal government to take steps to support the domestic manufacturing sector in the face of increased global competition for industrial investment, with nearly 58% saying “very important” and 30.7% saying “somewhat important.” When asked about what aspects of the China competition legislation were most important for supporting manufacturing activity, the top choices were addressing port congestion and competition issues in ocean shipping (70.9%), eliminating ill-conceived labor provisions that facilitate unionization campaigns (61.3%), strengthening U.S. leadership in energy innovation and competitiveness (58.2%), funding to increase domestic semiconductor production capacity (57.9%), investments to support the critical minerals supply chain (55.7%) and ensuring the tax code provides a full deduction for research expenses (48.3%), among others.

-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 more than 12.8 million men and women, contributes $2.77 trillion to the U.S. economy annually and accounts for 58% 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.

As energy prices remain at their highest levels in more than a decade, there’s little sign that the U.S. is on a steady course toward energy security. That’s why the NAM is urging the federal government to pursue all available options—including nuclear.

The lowdown: Nuclear energy is a safe, reliable and the largest zero-emission source of energy in the U.S.

• At a time of pronounced supply chain challenges, oil-and-gas lease cancellations and costly shortages of critical minerals, nuclear energy could go a long way toward fortifying the grid.
• In addition, the technology has advanced enormously in recent years. Microreactors, small enough to be moved by truck, are poised to help solve the challenge of powering remote areas.
• The Department of Energy also recognizes the importance of nuclear energy, recently noting its relevance to energy security in the department’s Supply Chain Assessments.

What we’re saying: “The reality is that to meet our growing electricity needs and climate goals, nuclear-generated power must be part of the solution,” said NAM Director of Energy and Resources Policy Chris Morris. Here are his key policy recommendations:

• Encourage capital formation: The NAM secured a significant $6 billion investment in the Civilian Nuclear Credit Program through the recent infrastructure bill, but more robust investments will be needed to ensure operations continue at current nuclear projects, Morris said.
• Relicensing: Licensing and permitting processes should meet the highest standards, but the Nuclear Regulatory Commission often takes years to complete them. The NRC should use its position on the Federal Permitting Improvement Steering Council to make efficiency improvements in its licensing processes under the recently announced Permitting Action Plan.
• Fuel supply chain security: The U.S. imports uranium for civilian nuclear use from Russia, Kazakhstan, Uzbekistan, Canada and Australia, among others. Meanwhile, new advanced reactor concepts will utilize high-assay low-enriched uranium (HALEU) which is now solely produced by Russia and China. The NAM has been calling on policymakers to prioritize increasing domestic production.
• SMRs and microreactors: Small modular reactors use factory-built components to streamline construction, while microreactors are portable and self-sufficient. Both will be crucial for next-generation nuclear power—but the U.S. government must invest in their manufacturing and modernize regulations accordingly.
• Spent fuels: The NAM has long supported ongoing R&D into the storage and transportation of spent fuels—and progress is being made. Just yesterday, NRC staff recommended licensing a new storage project in New Mexico, “determining there would be largely minor environmental impacts from the project,” according to POLITICO (subscription).
• Public perception: Commercial nuclear power is sometimes viewed as dangerous or unstable based on historic misconceptions. In truth, the U.S. nuclear industry is leading the world in best practices, safety and accountability. Policymakers must engage with local communities to provide the facts and emphasize the importance of nuclear power for combating climate change.

The last word: “Our current fleet and the next generation of nuclear power must be a substantial part of a clear-eyed strategy to address climate and energy security,” Morris said.