Research, Innovation and Technology

On Veterans Day, we honor the service members who safeguard our country, many of whom will go on to contribute their skills and experiences to civilian industries. Manufacturing is one beneficiary, with many veterans finding that the high-tech, mission-focused industry is an excellent home for their talents.

But how do transitioning service members and veterans find their new career paths? The Caterpillar Foundation is helping America’s heroes become tomorrow’s manufacturing leaders through its support of the Manufacturing Institute’s Heroes MAKE America initiative.

HMA provides integrated certification and career-readiness training in partnership with local community colleges to prepare transitioning service members, veterans, National Guard members, reservists and military spouses for rewarding careers in the manufacturing and supply chain industries.

Virtual training: The Caterpillar Foundation’s support began in 2021 and has helped HMA develop and launch its first 100% virtual training offering in partnership with Texas State Technical College—an exciting option for individuals across the country who might not be able to attend an in-person course.

• The program uses innovative solutions like virtual reality technology, provided by Transfr VR, in order to add a “hands-on” aspect to the students’ training for their Production Technician and OSHA 10 certifications.

• “Heroes MAKE America was great,” said Benjamin Novak, a graduate of Heroes MAKE America’s virtual training program. “The virtual self-paced program allowed me to balance class, transitioning and family life. Getting an opportunity to connect and speak with companies directly was a huge opportunity as well.”

New programs: Additionally, thanks to the foundation’s grant, Heroes MAKE America launched two new in-person training paths: a Mechatronics training program at Fort Hood, Texas, also in partnership with Texas State Technical College, and a Certified Logistics Technician training program at Fort Stewart/Hunter Army Airfield, Georgia, in partnership with Savannah Technical College.

• Together, the three new training offerings (the two mentioned above and the virtual option) have graduated 133 participants as of November 2022, with another 40 participants expected to graduate in December.

• “Heroes MAKE America is a great program that wants to see veterans succeed,” said Anna Rabago, a graduate of the Mechatronics training at Fort Hood, Texas. “They helped mold me into a great candidate for manufacturing while earning seven manufacturing certifications. The instructors are subject-matter experts in their field and are willing to work early or late evenings to benefit the soldiers.”

An impressive year: The HMA program is on track to graduate 303 members of the military community across all 6 training sites in 2022, bringing the total number of graduates since the 2018 inception of HMA to 957. The training sites include Fort Hood, Texas; Fort Stewart/Hunter Army Airfield, Georgia; Fort Riley, Kansas; Fort Campbell, Kentucky; Fort Bragg, North Carolina; and the 100% virtual option.

The last word: “HMA provided me with all the tools that I needed to thrive as a civilian,” said Tillman Harris, a graduate of the Production Technician training at Fort Bragg, North Carolina. “They provided industry training, résumé assistance, interview prep and much more. Trust in yourself and have confidence in everything you do. HMA is a program that cares about us and wants us to succeed.”

Learn more: Find out more about Heroes MAKE America here.

As innovation in manufacturing continues at breakneck speed, research and development is more important than ever—but it requires outstanding managers to make it all happen.

So how do these managers get the education and insights they need? The Innovation Research Interchange, a network of cross-industry innovators that the NAM combined with earlier this year, has an answer: an executive management course called Shaping Innovation Leaders.

The gist: Co-hosted by the Kellogg School of Management at Northwestern University, the course provides a forum for strategic thinking, education and networking for technology leaders from around the world.

• In 2023, it will take place on May 13–19 on the Northwestern campus in Evanston, Illinois.

The details: The goal of this seven-day program is to develop midlevel managers into leaders for their companies, by covering topics including:

• Evaluating financial results;
• Segmentation, targeting and positioning;
• Growing and defending your brand;
• Legal and strategic investments;
• Building a better network; and
• Negotiating skills and strategic alliances;

Who’s involved: To get a sense of this event’s caliber, look no further than the attendees from the 2022 course.

• They hailed from a wide range of companies, including manufacturers such as Mars, Procter & Gamble, John Deere, Hershey, NatureWorks, Air Liquide, Kimberly-Clark Corporation, Sherwin-Williams and many, many more.

The reviews are in: Participants in the 2022 course were enthusiastic about what they learned and experienced.

• “[I’m] really super impressed with the program, soup to nuts,” said John Deere Manager for Global Strategic Communications & Culture Jacqueline Kiple. “One of my favorite aspects of the program was really getting a chance to think about our business a little bit differently … to take a step back and think about the higher-level impacts that affect decision-making in our respective organizations.”

• “What I really enjoyed about this course was first and foremost the esteemed professors. … [The course] gives you a really big view of all the information you need to really understand business and understand the decisions that are getting made,” said Sherwin-Williams Associate R&D Director Tony Rook. “It gives you that top-level view of how you add value to [your] organization.”

Get involved: Registration is now open for the 2023 course. You can find additional information and register here.

This story can also be found within the NAM’s R&D action center.

After a tax law change went into effect in 2022, manufacturers across the country found themselves facing new obstacles to investment in research and development. For Vermeer Corporation—a manufacturer of industrial and agricultural equipment based in Pella, Iowa—the change is causing real concern.

The background: Until the beginning of this year, businesses could deduct 100% of their R&D expenses in the same year they incurred the expenses. Starting in 2022, however, a change in the tax law required businesses to spread deductions over a five-year timeframe. That change is making investment more expensive and preventing some companies from putting their resources into critical innovation.

Constant innovation: As a company that makes a variety of diverse products for fields like agriculture, mining, utility construction, forestry and renewable energy, Vermeer is always working at the cutting-edge of new technology, and that requires significant investment in R&D.

• “Vermeer designs and builds specialized equipment—and it has to be innovative,” said Vermeer Corp. Senior Director of International Business Development and Government Affairs Daryl Bouwkamp. “We have to push that leading edge constantly. The history of Vermeer is a history of invention and innovation.”

Vital competition: According to Vermeer, R&D is also vital to the ability of manufacturers in the United States to compete with foreign companies.

• “We’re not the only company that’s innovating around the world,” said Vermeer Vice President of Finance Ryan Agre. “There’s pressure from companies in countries that are producing products like ours.”

Immediate impact: The new tax law has already had a serious effect, according to Agre.

• “It’s a material, meaningful impact,” said Agre. “It’s millions in additional tax that we will incur at Vermeer just next year—and that’s the one-year impact, so it’ll be even more significant over a five-year implementation period. We’re actively having to harvest cash elsewhere to offset this impending change.”

Pushing back on China: The U.S. tax law change also stands in stark contrast with policies from countries like China, according to Vermeer.

• “When you look at the generosity of foreign support, especially China’s, versus the United States, it’s so lopsided,” said Bouwkamp. “China is trying to drive behavior toward R&D—and that’s something we’re lacking.”

The big picture: Agre also noted that making R&D more expensive can make companies like Vermeer risk-averse—more likely to direct the investments they do make toward smaller or more incremental innovations, and less willing or able to invest in the kind of ambitious research that can offer truly transformative results.

• “We don’t know what we haven’t discovered yet,” said Agre. “We have a history of being innovative in new spaces, and that requires individuals to have funding and freedom of thought to go out and experiment. When you’re trying to create something that doesn’t exist today, you’re going to hit some home runs—but you’re also going to strike out a bit. When you need more certainty, you start cutting out uncertainty and making fewer investments in big ideas. That impacts not just Vermeer but the whole economy.”

Manufacturers are staying on top of the tech game.

That was among the chief findings of a new polling conducted by the Manufacturing Leadership Council, the NAM’s digital transformation division. The annual Transformative Technologies in Manufacturing research survey aims to reveal data on current realities and expectations for manufacturing in the near future and in the years to come.

Rate of adoption: The most surprising data point was that 89% of respondents said they expect their company’s rate of adoption of disruptive technologies to increase over the next two years. That figure is up from 51% just one year ago.

Why disruptive technology? Reducing costs and improving operational efficiency were the most-cited reasons for investing in digital tech, with 83% of respondents identifying these as important motivations.

• Improving operational visibility and responsiveness came in second, at 61%.
• Other reasons include increasing digitization (40%), creating a competitive advantage (36%) and improving quality (30%).

Top near-future trends: Digital-twin modeling and simulation software, augmented and virtual reality, high-performance computing and further investments in supply chain management software will lead the next wave of investments during the coming year or two.

Not of interest: The survey found that quantum computing and blockchain technology are currently of the least interest to manufacturers.

The role of AI and ML: Artificial intelligence and machine learning usage continues to grow among manufacturers.

• Nearly 50% of respondents indicated that their companies have implemented AI, either on a single-project basis (40%) or in all factories (9%).
• About 75% said they are applying AI and ML to reduce costs and improve productivity and processes.
• Approximately 60% indicated they had used AI and ML for preventative/predictive maintenance or quality improvement.

Misunderstood metaverse: A new topic covered by this year’s survey, the manufacturing metaverse, was perhaps the least understood by respondents.

• About 38% said they were still trying to understand the technology and concept, 20% said they have no plans to adopt a manufacturing metaverse approach and 15% said they didn’t know how to respond to the question. 

The last word: “Manufacturers are finding more use cases and business benefits for increasing their use of digital technology, and the pace of adoption is accelerating,” said MLC Co-Founder and Vice President and Executive Director David R. Brousell.

• “The research confirms that manufacturing is headed for an agile, connected and collaborative future driven by technology and fueled by innovation.”

This story can also be found within the NAM’s R&D action center.

Manufacturing is an industry built on innovation—but with a recent change in tax law, manufacturers are encountering a new and major obstacle to the critical research and development investments they need to make in order to compete at home and around the world.

The background: Up until January 2022, a business could deduct 100% of their R&D expenses in the same year those expenses were incurred. But a change to the law that took effect this year now requires businesses to spread those deductions over a period of years, making investment in innovation more expensive.

The manufacturer: At Brewer Science—a Missouri-based manufacturer in the semiconductor industry—this issue has become an urgent challenge. The company is a top producer of materials needed to make semiconductor chips.

• In such a fast-moving industry, staying competitive requires nonstop innovation—and that demands constant investment in new products and processes. According to Brewer Science Executive Vice President Dan Brewer, a significant percentage of the company’s revenue goes back into R&D every year.
• “Semiconductors are everywhere, and new generations are constantly being created,” said Mr. Brewer. “The only way to compete abroad in our industry is to out-invent the competition.”

The impact: By making R&D investments more expensive, the tax code hinders manufacturers’ ability to make necessary expenditures not only on innovation, but also on other kinds of growth. Already, the harmful tax change has impacted Brewer Science’s bottom line and put a hitch in its plans for the future.

• Because the new law requires a deduction to be spread out over five years, companies are paying more in taxes than they were a year ago—a result that is causing them to reassess future investments.
• “We have a long list of new hires that we’re trying to bring on board and new projects we’d like to begin, and now we’re looking to make adjustments,” said Mr. Brewer. “Which projects can we put on hold? Which hires can we delay? It’s unfortunate that the same people who want investment in onshoring our industry are penalizing those that are already here.”

The ask: Brewer Science’s request is simple: return the tax treatment of R&D expenses to the way it was so that manufacturers are not penalized for pursuing the R&D that is necessary to spur economic growth and maintain America’s global leadership in innovation. There is still time to undo this for the current 2022 tax year, but time is quickly running out.

• “We’re not asking for a handout,” said Mr. Brewer. “We’re just asking Congress to allow us to immediately deduct these expenses as has been the case for nearly 70 years, since before Brewer Science was even a company.”

The big picture: Mr. Brewer is also quick to point out the widespread impact of this change, especially for smaller companies.

• “There are some companies that can’t make it five years without the ability to immediately deduct their R&D expenses,” he said.

Our move: The NAM has been leading the charge to ensure the tax code continues to support innovation by allowing businesses to fully deduct their R&D expenses in the year in which they are incurred.

The last word: “Our industry moves extremely fast,” said Mr. Brewer. “We must invest aggressively in research and development to stay relevant and stay competitive.”

This new research from MI and EY on adaptive skills in the manufacturing workplace. What are adaptive skills? Simply put, they are skills or traits that enable individuals to transform their abilities as their demands and environment change. There is a need for broader and evolving skillsets in the manufacturing sector and for building a workforce motivated by opportunities for growth. Doing this will help manufacturers transition to workplaces to a point where forward-thinking, engaging, and digitally enabled work is the norm.

The Manufacturing Institute, in partnership with Rockwell Automation and PTC, released a forward-looking study on where the manufacturing sector will be headed over the next 5 to 10 years and how those changes will impact the necessary skills that will be required of employees. More advanced processes and innovations will necessitate enhanced data and technological skills. As a result, manufacturers will need to support or provide new elements of continuous learning for existing employees, and the skill sets of new employees will need to become increasingly more sophisticated. At the same time, soft skills will always be important. This need for advanced skills sets for modern manufacturers comes against a backdrop of a tight labor market, complicating the search and heightening the already fierce competition for talent.

Even amid so much economic uncertainty, Cemen Tech is on track for a year of unprecedented growth. Leaders of the company, the world’s largest manufacturer of volumetric technology, attribute a good deal of its success to its loyal workforce.

Allegiance creator: Just what contributes to that worker loyalty? The answer may well be Cemen Tech’s unusual generosity.

• “We considered a number of new and different ways to continue to attract and retain good people,” Cemen Tech President and CEO Connor Deering said. “In September 2021, we made the decision to cover 100% of employee health insurance costs, the net effect of which is essentially our folks taking home more of the money they earn. That has really helped with retention.”
• The Indianola, Iowa–based company also raised wages across the board and began offering employees season tickets for local sports teams. 

A new approach: Full health insurance coverage made a difference when it came to attracting and keeping workers, but the volumetric concrete mixer manufacturer was still hitting another roadblock when it came to employment: finding people with the right qualifications. So, it set out to solve the problem in house.

• As part of a planned facility expansion, the company is setting aside space for the new “Cemen Tech University,” an innovative answer to the question of how to develop employees with highly desired, specialized skills. Classes are tentatively set to start in January 2023.
• The company is also working with area high schools and technical schools to forge partnerships in which students work for Cemen Tech part time, while still pursuing their diplomas or degrees.
• “This way, we train applicants for immediate success on the job, helping to ensure a strong fit between the employee and the company from the start,” Deering said. “It also gives us an opportunity to teach new hires about our organizational culture. … I believe [our education efforts] will help support an educated team member who’s connected to our culture, resulting in a happier, better and more long-term employee.” 

More incentives: Last March, Cemen Tech found a way to boost shift-worker attendance with a points-based rewards system.

• “We implemented an attendance bonus—if an employee stays within a certain number of points [for coming to work], they can earn an additional $90 a week,” said Cemen Tech Director of Human Resources Emily Lyons. “We have seen that help in terms of attracting and retaining employees and further incentivizing employees to achieve consistent attendance.”
• The company has also increased the referral bonus given to existing employees who bring in new hires, Lyons said.

Advice: Manufacturers looking to see similar growth to Cemen Tech, which is set to expand 65% this year, should consider implementing some of the firm’s ideas (if financially feasible). But companies should be prepared to incur some financial cost along the way.

• “Our growth has helped offset the profitability loss [from the increased benefits], but the reality is that our business is people,” Deering said. “If we don’t have people—good people—we’re not going anywhere. So, the fact that we’re little less profitable at the moment is OK, as long as we can continue to grow.”

When the new lunar mobility vehicle takes its first spin around the moon, it will be sporting a familiar logo on its wheels: Goodyear’s. But unlike the tires on your car, the lunar vehicle’s will be airless, made entirely of metal and clad in mesh.

Yet, the lunar tire isn’t entirely a separate beast, according to Goodyear Senior Program Manager for Non-Pneumatic Tires Michael Rachita. The tires might be rolling around the moon, but they are closely related to some Earth-bound technology—and will help that technology evolve even further.

• Rachita chatted with us recently about Goodyear’s contributions to the lunar mobility vehicle, which is being designed and built by Lockheed Martin and GM for deployment later this decade (read our interview with Lockheed Martin Vice President for the Lunar Exploration Campaign Kirk Shireman).
• It is intended to stay on the moon for years, both supporting NASA missions and functioning autonomously when the astronauts are not around. Here’s what Rachita told us about the tires that will make it all possible.

The design: A traditional rubber tire simply wouldn’t work on the moon, Rachita explains. It wouldn’t hold its air pressure in the vacuum of space, and without an atmosphere to filter out the sun’s radiation, the rubber would quickly degrade.

• Instead, Goodyear will be using metal alloys, such as aluminum and special steels. As Rachita puts it, “You can tap into the standard materials that are used in satellites as a starting point”—materials that are already tried and tested for space.

The environment: These are some of the environmental factors that engineers must consider, says Rachita.

• Temperatures: The moon undergoes extreme transitions in temperature, ranging from -280 degrees Fahrenheit at night to 260 degrees Fahrenheit during the day.
• Gravity: At only 1/6th that of Earth’s, the moon’s gravity changes the calculation of flexibility. The metal tires act something like a spring, but since objects bear down with much less weight on the moon, the tires must be correspondingly more flexible than they would have to be on Earth, Rachita says.
• Moon dust: The lunar regolith is sharp, abrasive and electrostatic, says Rachita, and acts something like very soft sand. In designing these tires, Goodyear has taken inspiration from off-roading techniques used for sandy or rocky areas, such as deflating tires to create a soft, broad surface that almost floats over the landscape.

The tests: Some of the testing is familiar, including sessions on a traditional flat track at Goodyear’s headquarters in Akron, Ohio. The track has a rotating band like a treadmill, which the testers must slow down, as the rover will top out at 12 mph (for safety reasons). The engineers can still learn a lot from the tires’ behavior even in Earth’s gravity, Rachita says.

• For other tests, however, the company has had to “create an event,” he says. That includes finding facilities with cryogenic chambers to test the tires’ durability in extreme temperatures.
• To mimic the lunar surface, the company will use soil rigs filled with simulated lunar soil developed by NASA.

The big question: Rachita responds to our inevitable question—“How do you change a tire on the moon?”—with a simple answer: you don’t.

• In fact, he adds, the technology that gives these tires a high degree of redundancy—allowing them to sustain damage and still keep going—has important applications here on Earth.

• “This is where it all connects for Goodyear and its strategy,” he says.

A tire revolution: Goodyear is working to make products that are “maintenance free,” Rachita explains, which is essential to new developments in mobility. Airless tires have an enormous advantage for both electric and autonomous vehicles, he says.

• First, electric vehicles have far fewer parts to maintain (like spark plugs and oil systems), so it makes sense to eliminate another source of frequent maintenance—air-filled tires.
• Meanwhile, if an autonomous vehicle gets a flat, who’s going to fix it? As Rachita says, often no one will be around; AVs will spend a lot of time traveling without passengers to their next pickup points.
• Air-filled tires don’t have redundancy, as Rachita points out—you get a flat tire and it’s an immediate problem. But on an airless tire with a “tension bridge” that supports its structure, up to 20% of the spokes can break without requiring a change. And if the mesh covering the tire tears, you don’t immediately start losing all of the air inside it.

Just in case . . . The lunar mobile’s tires will be attached rather traditionally, with either multiple lugs or one lug (as found on racecars)—so they could technically be changed on the moon. But the plan is to ensure this never becomes necessary, says Rachita. 

The last word: Creating tires for a long-lasting lunar vehicle is a “challenge to engineering thinking,” as Rachita puts it. It’s the sort of challenge that will pay off for the rest of us, too.

Anheuser-Busch InBev recently got to raise a toast to its team members—not just once, but four times.

After being named a 2022 Manufacturing Leadership Awards Gala winner in three categories—AI and Machine Learning, Digital Network Connectivity and Operational Excellence—the company took home the ultimate prize: the MLC’s Large Enterprise Manufacturer of the Year. (The MLC is the NAM’s digital transformation partner.)

Recipe for success: What’s brewing in AB InBev’s recipe for success? According to Global Vice President of Engineering and Operations Marcelo Ribeiro, a focus on world-class performance in all of the company’s operations.

• This means leveraging disruptive technologies and empowering frontline teams to drive sustainable and reliable performance, all with the dream of “to create a future with more cheers.”

Utilizing AI: One of AB InBev’s award-winning projects was its innovative use of AI to improve utilities performance. The company implemented a set of smart algorithms to optimize the performance of its air compressors and boilers, giving managers and operators a real-time, utilities-performance dashboard that alerted them when a target was not being hit.

• Started as a pilot in just five breweries, the project was so successful, the company rolled it out to more than 30 other breweries worldwide.
• AB InBev plans to expand the algorithm beyond boilers and compressors to provide utilities usage forecasts and prediction models.

Preventing downtime: Another AB InBev winner was the firm’s approach to attaining 100% reliability and optimization of all equipment and processes. This led to the development of a tool that monitors equipment performance and prescribes maintenance actions, both of which minimize downtime.

• The company’s ambitious reliability goal also creates safer working conditions in breweries and maximizes sustainability by reducing consumption of raw materials, packaging and spare parts.

Lessons on digital transformation: While technology can provide solutions to problems, resist the urge to simply “do” technology for technology’s sake, Ribeiro cautioned. First identify a problem, then determine how technology can help fix it. Don’t work the other way around.

• “One thing we have learned in recent years is that future is becoming less predictable,” Ribeiro said. “Manufacturing needs to create an ecosystem in the future where we can learn from each other. And we have to actually enable that to happen as becoming more resilient will require building a collaborative ecosystem.”

Nominations are being accepted now for the 2023 Manufacturing Leadership Awards. Find complete details here.