Innovation and Technology

Artificial intelligence is improving efficiency, workplace safety, product development, machine maintenance and supply chain logistics at manufacturing facilities everywhere, according to a new, first-of-its-kind report from the NAM.

What’s going on: “Working Smarter: How Manufacturers Are Using Artificial Intelligence,” released today, details use cases for AI in the sector, discussing how manufacturers nationwide are using it to improve lives everywhere.

• The report features deep dives on AI-powered technologies at manufacturers, including Johnson & Johnson, Schneider Electric and Hitachi.

Trailblazers need good policy, too: “From developing more effective clinical trials and improving workplace safety to strengthening supply chain resiliency and supporting workforce training for employees, AI is unlocking new opportunities to strengthen our modern manufacturing workforce and improve the lives of all Americans,” said NAM President and CEO Jay Timmons. “Congress and the Biden administration can support manufacturers’ adoption of AI by enacting strong data privacy protections, investing in workforce training and providing regulatory certainty.”

• Legislators should “lean on” manufacturers’ deep experience when drafting AI-related legislation, added Johnson & Johnson Executive Vice President and Chief Technical Operations & Risk Officer and NAM Board Chair Kathy Wengel.
• “All possible futures for modern manufacturing in the U.S. involve AI,” she said. “Policymakers must develop sensible, carefully thought-out frameworks for various AI applications. … We need a policy environment that supports innovation and growth in manufacturing AI, because it will bolster U.S. competitiveness and leadership in this critical emerging field.”

The recommendations: The report contains immediately implementable policy recommendations for lawmakers:

• Invest in research and development and career technical education institutions to train the modern manufacturing workforce.
• Pass federal privacy legislation to advance individuals’ privacy protections and give legal clarity that will support continued innovation by manufacturers.
• Use a risk-based approach to new AI regulations that tailors any future laws to specific use cases and minimizes the burden of compliance.
• Ensure that AI regulation is aligned globally.

The EPA recently finalized a rule that establishes a process for conducting risk evaluations for certain chemicals—but it will only hamstring U.S. manufacturing competitiveness if implemented, the NAM said this week.

What’s going on: In a final rule issued late last month under the Toxic Substances Control Act, the EPA “will now consider exposure to chemicals in air and water and, when possible, combined risks from exposure to multiple chemicals” (Chemical & Engineering News).

• “The [agency] will also consider risks to workers without assuming that they are wearing personal protective equipment [and] … chemical uses required for national security or critical infrastructure.”

Why it’s important: The final regulation will unnecessarily cost manufacturers in both time and money.

• The “new TSCA risk evaluation rule adds too many additional barriers and requirements on manufacturers and risks creating de facto bans on chemistries essential to both existing technologies and the development of new innovative materials,” the NAM said Monday.
• “Manufacturing relies heavily on new and existing chemicals, which are the building blocks of technologies that make modern life possible,” NAM Vice President of Domestic Policy Brandon Farris told the agency last December. “To ensure continued access to the newest chemicals which can make essential technologies even more effective and efficient, TSCA should be administered in a manner that protects health and the environment while avoiding unnecessary adverse economic impacts on business enterprises.”

What should be done: The agency should revise the final rule, the NAM said.

The Innovation Research Interchange has announced the finalists for this year’s IRI Innovation Excellence Awards.

What’s going on: The honors given by the IRI—the NAM’s innovation arm—pay tribute to organizations and individuals whose outstanding vision and tireless pursuit of excellence are having a positive impact on lives today and shaping the industries of tomorrow. Honorees come from companies of all sizes and industries.

The categories: Awards are given in five categories, three to companies and two to individuals. They are as follows:

• IRI Innovation Leadership Award (individual)
• IRI Promising Young Innovation Professional Award (individual)
• IRI Excellence Award for Innovation in Sustainability (company)
• IRI Excellence Award for Outstanding Innovative Culture (company)
• IRI Excellence Award for Digital and Technological Innovation (company)

Who participates: Each year, nominees comprise innovators who are leveraging technology to enhance operational performance at their companies or sustainability and fostering a collaborative workplace culture that celebrates innovation.

• High-performing leaders who drive sustainability initiatives are also recognized, and consultants and university partners working on exciting innovation projects with a company are eligible for nomination, too.

Why they’re important: In addition to building team unity and encouraging executive leadership to invest further in innovation, the awards give companies the chance to revisit the successes, challenges and lessons learned throughout their innovative projects.

• Selection as a finalist shows customers, prospects and partners that a company or individual is at the forefront of innovation.

Attend the celebration: Winners will be announced May 16 during the Innovation Celebration and Reception at the Innovators Summit in Boston. Celebration admission is included with summit registration.

About the IRI: The IRI offers insights, case studies, research, benchmarks and strategic connections—all built around a set of innovation growth drivers as determined by members annually. Learn more about the IRI here.

Washington, D.C. – Following the Federal Trade Commission’s vote in favor of a rule that would prohibit employers and their employees from entering noncompete agreements, National Association of Manufacturers Managing Vice President of Policy Chris Netram released the following statement:

“The FTC’s rule banning noncompete agreements is unprecedented and threatens manufacturers’ ability to attract and retain talent. In addition, today’s action puts at risk the security of intellectual property and trade secrets—anathema to an industry that accounts for 53% of all private-sector R&D.

“An NAM survey found that 66% of respondents—manufacturers of all sizes—said the ban would interfere with their operations, and nearly half said it would impact employee training programs. The ban could force manufacturers to revamp their human capital operations completely, enact burdensome controls or silo parts of their operations from each other, which would result in less training for employees, less collaboration, less innovation and less efficiency. The NAM will weigh all options in response to the commission’s vote, so that well-paying manufacturing jobs and innovation are not compromised.”

-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 $2.89 trillion to the U.S. economy annually and accounts for 53% 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 NAM testified before the U.S. Copyright Office last week, explaining how two proposed exemptions from copyright protections would weaken manufacturers’ intellectual property rights, do significant harm to their businesses and potentially endanger consumers.

What’s going on: The Copyright Office is considering whether to recommend two exemptions from the Digital Millennium Copyright Act that would allow users to circumvent measures protecting copyrighted content.

• One proposal was designed to allow the so-called “right-to-repair” by enabling access to operational data (including diagnostic and telematics data) from automobiles, agricultural vehicles, marine vessels and more. The other is focused on industrial equipment.

NAM speaks out: “The basis of the so-called ‘right-to-repair’ movement hinges on the false notion that owners do not have the ability to repair their own equipment,” NAM Vice President of Domestic Policy Charles Crain said at the recent hearing. “The truth, however, is that the majority of [original equipment manufacturers] already provide a wide range of resources and tools that allow users—and third-party repair businesses—to maintain, diagnose and repair products.”

• The NAM previously submitted comments urging the Copyright Office not to adopt the proposed exemptions.

Why it’s important: “These exemptions would undermine manufacturers’ IP rights in service of right-to-repair—and the record does not support their adoption,” Crain continued.

• The exemptions are too broad and inadequately defined, and their proponents have “failed to show that users will be adversely affected absent the ability to circumvent [copyright law].”
• What’s more, the exemptions “would expose proprietary information to public consumption and use, likely endangering consumers and allowing for unlawful modifications of government-mandated safety and emissions limits.”

The last word: “In short, right-to-repair is a solution in search of a problem,” Crain said.

In a significant change that protects manufacturers’ intellectual property rights, an updated draft of the World Health Organization’s pandemic agreement no longer includes IP language that would have pressured or compelled manufacturers to turn their innovations over to foreign countries, including competitors such as China, POLITICO Pro (subscription) reports.

• Convincing organizations such as the WHO to reject forced IP transfers has been a top priority for the NAM, and this week’s announcement represents significant progress for manufacturers.

What’s going on: “The latest text has scrapped a clause stating countries will ‘consider supporting’ time-bound suspensions of intellectual property rights during pandemics. Instead, each country will consider supporting ‘appropriate measures’ to scale up the manufacture of products that could help stymie a future pandemic.”

• The draft is set to be put to WHO members next month for a vote at the 77th World Health Assembly in Geneva, Switzerland.
• Subject to applicable laws, under the draft agreement countries will also be required to “support … capacity-building for the transfer of technology and knowhow for pandemic-related health products on mutually agreed terms.”
• The text indicates that the pathogen access and benefit sharing system—which would require nations to share pathogen information “with the WHO in exchange for access to the resulting health products developed to fight the new threat”—is still under negotiation. Thus far, countries have been unable to agree on the terms of that exchange.

Why it’s important: IP waivers would significantly harm manufacturers and their ability to compete globally.

• The NAM led the charge with regard to the World Trade Organization earlier this year, when it warned policymakers in the U.S. and abroad about the problems inherent in expanding the WTO’s 2022 TRIPS waiver on IP rights to include COVID-19 therapeutics and diagnostics.
• As a result of that advocacy, the waiver was ultimately kept out of the WTO’s final Ministerial Declaration last month.
• In addition, in January, the NAM responded to the U.S. Department of Health and Human Services’ request for comments regarding the WHO’s pandemic preparedness agreement. The NAM urged that any IP waiver be removed from the WHO text.

The funding issue: Another challenge the WHO text puts off is the financing of all the initiatives it lays out.

• While it mentions establishing a “coordinating financial mechanism,” it does not detail how the mechanism would work.

A common theme in science fiction is the fully automated, robotized factory that manufactures nothing but robots. We’re not there yet, but the fully automated manufacturing plant has already begun making everyday products, including computer parts, electric shavers and CNC machines.

The promise of AI: Now generative AI is promising to take manufacturing automation manufacturing to a new level.

• At the 2023 Hannover Messe trade fair in Hanover, Germany, Siemens and Microsoft showcased an offering now in use in factories worldwide: a system that uses ChatGPT to generate code for industrial computers known as programmable logic controllers. (For a deeper dive into what this means for manufacturing, read the full version of this article by Tim Hornyak in the Innovation Research Interchange’s Research-Technology Management magazine.)

Why it’s important: The innovation allows users to ask ChatGPT to generate code for specific tasks (i.e., a program to operate the stamping of a part).

• In addition to saving time and reducing the likelihood of errors, it is capable of understanding commands given in natural language, a characteristic that vastly increases the number of potential users.

Efficient designs: Creating more efficient designs is another early use case for generative AI.

• General Motors has used the technology to evaluate better designs for some of the roughly 30,000 parts that go into the average car. For example, a standard seat bracket—an important safety component that binds seatbelt fasteners to seats as well as seats to the floor of the car—consists of eight separate pieces welded together.
• Generative-design software used by GM analyzed the requirements and suggested more than 150 alternative designs, far more than the two or three options a designer can typically offer. GM engineers chose one: a single piece of stainless steel that is 40% lighter and 20% stronger than the conventional part.

Pharma applications: Generative AI looks promising for the pharmaceutical industry, too, given its potential for cutting costs and drug time to market.

• Merck has used generative AI to create synthetic images of complex but rare defects, a group for which training data are limited. The drugmaker’s quality-control sensors use the synthetic images to watch for novel defects.

Other potential use cases: The possible uses for generative AI in other areas is vast and includes the following:

• Reducing time and cost involved in creating physical prototypes
• Automating search and summary of documents related to manufacturing equipment, which would speed repairs and maintenance
• Accelerating supply chain operations by forecasting demand patterns, minimizing production downtime and suggesting better transport routes
• Customizing products or solutions to better suit customer needs
• Forecasting raw materials needs, optimizing production schedules and identifying production inefficiencies

However … Generative AI in manufacturing is not without its challenges. The energy cost to power a single server rack in the U.S. is $30,000 a year.

• Just one training run for an AI engine consumes the power equivalent of 120 U.S. households per year.
• With the reliance on large datasets, manufacturers are concerned about data privacy and security, necessitating robust data-protection measures.
• The integration of AI in manufacturing may require a change in workers’ skillsets and corporate culture.
• As AI plays a more significant role in decision-making, ethical questions about bias and accountability are emerging.
• Manufacturers have to ensure that AI systems operate fairly and transparently.

Find out more: AI in manufacturing is just one of the timely topics covered in depth in Research-Technology Management, the journal of the IRI, the NAM’s innovation division. Learn more.

The Manufacturing Institute—the NAM’s 501(c)(3) workforce development and education affiliate—had ample reason to celebrate last night.

What went on: The MI held the 2024 Women MAKE Awards gala, a night that recognizes outstanding women in manufacturing. Each year, the awards pay special tribute to 100 peer-nominated women leaders (“Honorees”) and 30 rising female stars (“Emerging Leaders,” women under the age of 30) in the industry.

• The event, held this year at The Anthem—a waterfront concert venue in Washington, D.C.—was sponsored by Caterpillar, Toyota, BASF, Trane Technologies, International Paper, Johnson & Johnson, Novelis and others.
• It featured a vocal performance by singer Loren Allred, platinum-selling singer-songwriter of “Never Enough” from “The Greatest Showman” musical, who gained widespread fame after appearing on “Britain’s Got Talent” in 2022.

What was said: Caterpillar Group President of Resource Industries, NAM Executive Committee Member and Women MAKE Awards Chair Denise Johnson told the night’s award winners that she’s been “the only woman in a room, or the only woman on a project” many times in her career.

• But “[l]ooking around this theater and seeing the faces of the Honorees and Emerging Leaders tells me that times are changing.”
• She then addressed the honorees directly, saying, “Your success, your work ethic and your stories will inspire the next generation of manufacturing leaders. … You are moving us along toward a future when women are not underrepresented in our industry.”

From Honoree to Vice Chair: Toyota Motor North America Senior Vice President, Electric Vehicle Supply Susan Elkington—a 2014 Honoree of the awards, formerly called the STEP Ahead Awards—was this year’s awards vice chair. She attested to the power of the awards to help women advance in their careers.

• “[T]he Women MAKE network … helped me realize the many qualities and experiences uniting all the women who have been inducted into this amazing network.”
• She noted the cruciality of the MI’s Women MAKE initiative, which “provides a platform for role models and mentors to encourage women to enter the field and succeed in it.”

No limits: NAM President and CEO and MI Chairman of the Board Jay Timmons also discussed the importance of role models, a label aptly applied to all the award nominees.

• Timmons, a parent of three, told the audience that he and his children recently learned the story of 30-year-old Cole Brauer, who last month made history as the first American woman to sail solo nonstop around the world.
• Brauer’s story “sends a message to those—frankly, women or men—who might have been led to believe there were limits to what they could achieve or that their careers might be confined within guardrails,” he said. “Your examples are inspiring people in a similar way. You are powerhouses—your dynamism, your drive, your enthusiasm—all these qualities supercharge modern manufacturing, making our industry an even more powerful force for good.” 

“Amazing things”: MI President and Executive Director Carolyn Lee called the nominated women “powerhouses who have accomplished amazing things.”

• “You deserve this recognition for your excellence and for everything you do to uplift others,” Lee told the award nominees. “But we’re not just celebrating. Being here to recognize these winners is shining a light and fueling the work to close the gender and talent gap in manufacturing.”
• Women account for less than one-third of the American manufacturing workforce, she went on, but endeavors such as the MI’s Women MAKE America initiative—the nation’s premier program dedicated to closing the gender gap in the sector—“and companies like yours are committed to closing that gap.”

Learn more: For a full list of this year’s award winners, click here.

A common theme in science fiction is the fully automated, robotized factory that manufactures nothing but robots. We’re not there yet, but the fully automated manufacturing plant has already begun making everyday products, including computer parts, electric shavers and CNC machines.

The promise of AI: Now generative AI is promising to take manufacturing automation manufacturing to a new level.

• At the 2023 Hannover Messe trade fair in Hanover, Germany, Siemens and Microsoft showcased an offering now in use in factories worldwide: a system that uses ChatGPT to generate code for industrial computers known as programmable logic controllers. (For a deeper dive into what this means for manufacturing, read the full version of this article by Tim Hornyak in the Innovation Research Interchange’s Research-Technology Management magazine.)

Why it’s important: The innovation allows users to ask ChatGPT to generate code for specific tasks (i.e., a program to operate the stamping of a part).

• In addition to saving time and reducing the likelihood of errors, it is capable of understanding commands given in natural language, a characteristic that vastly increases the number of potential users.

Efficient designs: Creating more efficient designs is another early use case for generative AI.

• General Motors has used the technology to evaluate better designs for some of the roughly 30,000 parts that go into the average car. For example, a standard seat bracket—an important safety component that binds seatbelt fasteners to seats as well as seats to the floor of the car—consists of eight separate pieces welded together.
• Generative-design software used by GM analyzed the requirements and suggested more than 150 alternative designs, far more than the two or three options a designer can typically offer. GM engineers chose one: a single piece of stainless steel that is 40% lighter and 20% stronger than the conventional part.

Read the full story here.

Ecolab’s mission hasn’t changed much in more than 100 years. It’s still “bringing science to our customers in a way that drives performance, productivity and less water and energy use.”

• That’s according to Ecolab Chief Sustainability Officer Emilio Tenuta, who says being climate-minded is not only “the right thing to do,” but also at the core of the St. Paul, Minnesota–headquartered water, hygiene and infection-prevention company’s operating model.

A dual purpose: “We make the business case for why sustainability and [profitability] can go hand-in-hand when it comes to driving solutions,” Tenuta told us recently. “It’s why 48,000 Ecolab associates wake up every morning with the feeling, ‘We’re making a real difference in the world.’”

• Ecolab—which recently announced that 100% of its European operations are now powered by renewable energy sources—helps millions of customers worldwide reduce their environmental impact while promoting food safety, maintaining clean environments and optimizing resource use.
• “At Ecolab, we talk about eROI—Exponential Return on Investment,” Tenuta explained. “It’s about understanding that we have the ability to deliver on a business outcome—profitability—while also delivering an environmental impact.”

Don’t forget water: Often neglected in sustainability conversations, Tenuta said, is water. For a full picture of the effect of conservation and innovation efforts on climate, water needs to be factored in.

• “Sometimes we forget the role that water plays in addressing climate change,” he continued. Depending on the type of manufacturing, up to 75% of energy is driven by the water systems. You have to heat it, treat it, pump it, cool it. …Water doesn’t necessarily get the same headlines as climate, but if you follow the water, that’s going to have a lasting impact” on the environment, while also saving you money.

A holistic approach: In addition to being recognized regularly for its environmental stewardship, Ecolab is routinely named to most-ethical-company lists. That’s no accident; to the company, caring for the planet goes hand-in-hand with caring for people, Tenuta told the NAM.

• “Workplace quality is just [one way of] demonstrating a holistic approach to the world,” he said. “That’s how we think about it at Ecolab. It’s for us as a company but it’s also for society as a whole.” 

A sustainable partnership: In furtherance of its financial and net-zero emissions goals, the firm recently partnered with Ford to electrify its service and sales vehicles.

• Ecolab—which has “a longstanding relationship dating back almost 100 years” with the automaker, according to Tenuta—has pledged to both halve emissions from its own operations and help its customers reduce their emissions by 6 million metric tonnes by 2030. “To get there, we need to implement initiatives like electrifying our fleet,” he said.
• Under the program, Ecolab will buy and deploy more than 1,000 Ford F-150 Lightning and Mustang Mach-E electric vehicles for its employees in California by 2025. The company will then move to electrify its entire North American sales and service fleet by 2030. “This allows us to support our associates so they can be more productive in their day-to-day work serving our customers and getting to net zero.”

Advice for manufacturers: Achieving sustainable operations doesn’t happen overnight—but undertaking the efforts to get there is well worth manufacturers’ time, Tenuta said.

• “Sustainability requires a multifaceted approach that considers all things: social, emotional, economic. It’s about in some ways taking a longer-term view of progress and opportunity. That can be challenging, but by elevating innovation and long-term commitment, companies can build a more sustainable future … and boost profitability.”