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JAN 2019

Member Updates from AMT — The Association For Manufacturing Technology

ON GOV: “Government shutdown continues” – Is there time for the new Democrat leadership to achieve its priorities? … p. 4

MARKET DATA REVIEW: “Manufacturing slowdown?” – how long can the good times roll?…p. 6

AMT – The Association For Manufacturing Technology 7901 Jones Branch Drive, Suite 900 McLean, VA 22102-3316 Address Service Requested

PRESORTED FIRST CLASS MAIL U.S. POSTAGE PAID PERMIT #163 DULLES, VA

SMARTFORCE: “Growing the smartforce” It’s on us … p. 8

Solution of the month – we come to you BY KIM BROWN DIRECTOR – MEMBER SERVICES The Road Warrior, Steve Lesnewich, Vice President of Member Services, and I were finalizing our 2019 strategic plan before the holiday break and reminiscing on all the trips we took, places we visited, and people we talked to. Most importantly: what we learned, and what could be of benefit to our members. With that in mind I thought back to my second to last trip of 2018 which was in November but actually started in October. Makes sense, right? It will, read on. At AMT’s MTForecast on October 11 in St Louis, I gave a presentation on business opportunities available through AMT, which sparked many conversations with our members about utilizing these products and services. Several of the conversations focused on MTInsight and Exhibitor Passport. I was asked by Kevin Ahaus, President of Ahaus Tooling & Engineering, if I could come present to their sales team some of the features and benefits about these two products. My answer, of course we do that! Talk about a benefit to our members! Member visits are valuable because they provide a personalized opportunity to learn more about how to get the most out of their membership, what AMT is doing behind the scenes for our industry, and, most importantly, to build relationships with the staff. This is a two-way street in that the member visits are just as much if not more rewarding to AMT. When we visit our members, we get to learn your story, see your technology and processes in action, tour your facility, meet your team, and take all that knowledge back to headquarters to better serve you. The more we know and learn about your company the more knowledgeable we can be with consult and customize offerings. For me personally, I need all the technological experience I can get.

|AMTonline.org

I scheduled a half-day training session with Ahaus Tooling & Engineering during a scheduled sales meeting. I taught their regional sales managers how to use the IMTS Exhibitor Passport in each of their territories to drill down to targeted prospects so that they can create lists for sales calls and visits for their sales people. We looked at the other tools inside MTInsight that provide business opportunities and briefings relevant to their customer industries and how to search for customer contact information. Territory reviews and mapping, research services, and committee involvement were also covered in our session. While I was in the Dayton, Ohio, area, I took advantage of the opportunity and called upon a few other members. I was able to squeeze in a quick tour and product discussion with another member before I left town. Even though I was only able to spend under two hours at this visit before I had to head to the airport, I was impressed by their team and how much they were able to teach me about their company and technology. When we toured the facility, everyone was more than eager to take a break, greet me, and then explain to me exactly what they were doing and their role in the company. In 2019 we’ll be hitting the road more: more member visits, more member feedback, more member outreach. • Do you want AMT to come to you? • Do you have a specific topic you’d like to learn more about? • Do you need AMT to help you find a solution? All you have to do is ask and we’ll be there. Take a look at our calendar to see where we’ll be in the next few months. I already have three visit trips booked for January and will be in the Houston area for Houstex in February. Reach out to me at kbrown@amtonline.org or 571-432-7282 or Steve Lesnewich at slesnewich@amtonline.org or 908-313-8266.

|AMTnews |AMTonline |AMTinsight


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INDUSTRY NEWS Tom Sheridan has been promoted to President of Royal Products. He has been with Royal for 28 years. He has risen through the ranks within the company from Applications Engineer, Design Engineer, Director of Sales and Marketing, Vice President of Marketing, and now, to President. Tom has a BS in Mechanical Engineering Chris Jakubowsky has been promoted to Executive Vice President. Chris has been with Royal Products for 22 years and has ascended through the ranks at Royal as well, from Industrial Engineer, Director of Production, Director of Operations, VP of Operations, and now, to Executive Vice President. Chris has a BS in Industrial Engineering as well as an MBA.

Cans, coats and toys!

With an aggressive plan in place, Mazak Corporation has announced it will invest $8.5 million in new manufacturing technology for its Florence, Kentucky, Mazak iSmart Factory operations. Mazak continuously invests in its North American operations, which have grown and advanced into a sophisticated and extremely productive Mazak iSmart Factory,” said Dan Janka, President of Mazak Corp.

Every year during the holidays, AMT staff organize a drive that serves those in need in our community. This year, we hosted two events: a “Cans & Coats” drive and Angel Tree, the Salvation Army program that provides holiday gifts to more than 6,000 families who would otherwise not receive gifts. AMT staff celebrated another record-breaker in 2018 (like IMTS 2018) with close to 100 percent participation. Cans Collection AMT collected nearly 200 cans. For the charitable organization Food for Others, which distributes food to those needing food when an emergency strikes, and for the growing number of working poor who are unable to make ends meet and need to supplement their inadequate food supplies. Nearly 60,000 people in Northern Virginia are food insecure. Call for Winter Coats Even though Virginia is a southern state and considered mild compared to other areas of the United States, winter-month (Dec.–Feb.) temperatures average below freezing and may include a few days below zero F °. Health experts report that even a two-degree drop in body temperature results in reduced heart rate, loss of coordination, and confusion. Adults cannot work effectively, and children find it difficult to learn. For most, a warm coat solves the problem, but for the nearly 15 percent of Americans living in poverty, a warm winter coat is a budget “extra.” AMT collected 26 gently-used winter coats for children and adults and donated them to those in Northern Virginia without the funds to purchase warm

Two leaders in U.S. manufacturing innovation, Thomas Kurfess and Scott Smith, have joined the Department of Energy’s Oak Ridge National Laboratory to support its pioneering research in advanced manufacturing. Kurfess and Smith’s expertise in control systems and machine tooling expands the capabilities of DOE’s Manufacturing Demonstration Facility at ORNL, and their broad experience with industry, academia and the public sector will enhance lab partnerships and promote adoption of new technologies by U.S. manufacturers. “We’re pleased to welcome these industry leaders to our advanced manufacturing team,” ORNL Director Thomas Zacharia said. “ORNL has been at the forefront of rapid advances in manufacturing technology, and Drs. Kurfess and Smith will lead critical programs in advanced manufacturing, automation, and robotics that support the lab’s mission of delivering scientific and technical solutions to national challenges.” Kurfess will spearhead the development of new manufacturing platforms and control systems that will

enable autonomous manufacturing through robotics and controls. He comes to ORNL from the Georgia Institute of Technology, where he is the HUSCO/Ramirez distinguished chair in fluid power and motion control and professor of mechanical engineering. “I look forward to joining the team at ORNL in creating, implementing, and scaling next-generation technologies to move the U.S. manufacturing base forward,” Kurfess said. “With the facilities and personnel at ORNL, we will be second to none and ensure the leadership of the United States in manufacturing for generations to come. It is both exciting and an honor to be on such an amazing team.” Smith, Professor and Chair of Mechanical Engineering at the University of North Carolina at Charlotte, will lead ORNL’s advanced machining and machine tool research, focused on developing the systems, processes, sensors, and controls needed to reinvigorate the U.S. industrial base and bolster national security. For Smith, who grew up in Tennessee, this new

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Brought to you by AMT — The Association For Manufacturing Technology

AMT - The Association For Manufacturing Technology ©2018 7901 Jones Branch Drive, Suite 900 n McLean, Virginia 22102-3316 703-893-2900 n Editor@AMTonline.org Contact AMT: Amber Thomas, 703-216-7448, athomas@AMTonline.org

AMT NEWS Amber Thomas, Vice President Advocacy & Communications Faith Ambrosini, Production Managing Editor Cesar Sosa, Art Director Ashley Park, Graphic Designer Submit company news articles to: AMTonline.org/membercms ADVOCACY Amber Thomas 571-216-7448 athomas@AMTonline.org

BUSINESS DEVELOPMENT Travis Egan 703-827-5222 tegan@AMTonline.org BUSINESS SOLUTIONS Kim Brown 703-827-5223 kbrown@AMTonline.org EXHIBITIONS Apply for space at IMTS 2020 Peter R. Eelman 703-827-5264 peelman@AMTonline.org Michelle Edmonson 703-827-5242 medmonson@AMTonline.org

Organizers Alka Parandekar and Kathy Webster, collect, and gather cans for the charitable organization Food for Others.

winter coats, operated by Our Lady of Good Counsel Church in Vienna, Va. Angel Tree Program AMT collected 47 gifts of toys for the 2018 Angel Tree program for children ranging in ages from two to 12 years old. “It was fun shopping for kids’ toys,” said participant Danish Chand. “It was a chance to spend some time outside of work with my colleagues.” “AMT is proud to have thoughtful employees who extend AMT’s family, friendly, and fun work environment beyond the office walls and into their surrounding community,” said Doug Woods, AMT President. “We appreciate their generosity and the extra time it took to contribute to these programs. Drives like these, remind us about the true spirit of the holiday season.”

HAVE ANYWS EXCITING NE TO SHARE?

Send your company news to AMTNEWS@amtonline.org

opportunity is also a homecoming. “I am excited about returning home to work at Oak Ridge National Laboratory, building research and development capabilities in machining and machine tools,” Smith said. “I hope to add a powerful new dimension to the strong manufacturing expertise already in place at ORNL.” The Manufacturing Demonstration Facility at ORNL is supported by the Department of Energy’s Office of Energy Efficiency and Renewable Energy, Advanced Manufacturing Off ice (AMO). AMO supports early-stage research to advance innovation in U.S. manufacturing and promote American economic growth and energy security. UT-Battelle manages ORNL for the Department of Energy’s Office of Science. The Office of Science is the single largest supporter of basic research in the physical sciences in the United States and is working to address some of the most pressing challenges of our time. For more information, please visit http://science. energy.gov/ (http://science.energy.gov/).

Bonnie T. Gurney 703-827-5277 bgurney@AMTonline.org Bill Herman 703-827-5282 bherman@AMTonline.org Mark Kennedy 703-827-5220 mkennedy@AMTonline.org FINANCE & HUMAN RESOURCES Becky Stahl 703-827-5246 bstahl@AMTonline.org GLOBAL SERVICES Ed Christopher 703-827-5296 echristopher@AMTonline.org

MANUFACTURING TECHNOLOGY Tim Shinbara 703-827-5243 tshinbara@AMTonline.org

MTCONNECT® Russ Waddell 703-827-5258 rwaddell@AMTonline.org

INDUSTRY ENGAGEMENT meetings@AMTonline.org AMTonline.org/meetings

MTINSIGHT Ian Stringer 703-827-5209 istringer@AMTonline.org

MEMBER SERVICES Steve Lesnewich 703-827-5227 slesnewich@AMTonline.org Melissa Williamson 703-827-5272 mwilliamson@AMTonline.org

SMARTFORCE DEVELOPMENT Greg Jones 703-827-5203 gjones@AMTonline.org STRATEGIC ANALYTICS Pat McGibbon 703-827-5255 pmcgibbon@AMTonline.org


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AMT welcomes new vice president of Business Development A MT - The Association For Manufacturing Technology welocmes Travis Egan as the Vice President of Business Development. His focus will be introducing our current suite of innovative offerings to AMT members and developing new products, services, and markets. Egan comes with a wealth of knowledge and experience serving companies in the manufacturing technology industry. An accomplished business development professional, he has a record of high-level performance and a well-rounded skill set. His expertise in driving growth through new business development, product development and team management will be instrumental in boosting AMT’s engagement with the industry, in the United States and around the world. A motivational and energetic leader who fosters teamwork and dedication in others, Egan will oversee Marketing/Brand and Member Services. “I am excited to join the top-notch team at AMT and fortunate to be working for such a respected organization that prides itself on innovation and customer service,” said Egan. “I look forward to working with the industry’s most knowledgeable professionals to continually enhance how we meet the members’ needs and accelerate the adoption of new manufacturing technology.” “Travis is well-known in the manufacturing community for his commitment, dedication and passion for the companies and workers that comprise the industry. He will play a key role not only in increasing our current member engagement, but also in delivering new product, services and market opportunities. He will be an integral part of our team, and we’re excited to have him,” said AMT President Doug Woods. Previously, Egan was Gardner Business Media’s Group Publisher for metalworking brands, including Modern Machine Shop, Production Machining, MoldMaking Technolog y and Additive Manufacturing. He also served on Gardner’s Executive Team and Board of Directors. AMT accelerates the development of the manufacturing industry through innovation, collaboration and the promotion of the product and process technologies that are vital to our national economy and global competitiveness. For additional information on AMT products and services, please visit our website, www.amtonline.org.

Vitals  Hometown:  Glen Ellyn, Illinois Studies: Illinois State University  Bachelor of Science, Industrial Technology Favorite sport/team: Pro Football: Chicago Bears College Football: Alabama – Roll Tide College Soccer: North Central  Cardinals – My daughter, Kily, will be playing for the NC Cardinals next year. Favorite book: Fiction: The Road, Cormac McCarthy Non-Fiction: Good To Great, Jim Collins Favorite quote: “Fortune Favors The Bold”  Fun fact: After college I worked the “Friendly Confines” of Wrigley Field for the Chicago Cubs. During this time I was fortunate to have brief encounters with Hall of Fame Cubs shortstop, “Mr. Cub”, Ernie Banks and legendary announcer, Harry Caray.

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JAN 2019

ON GOVERNMENT

Shutdown stalls action BY AMBER THOMAS VICE PRESIDENT, ADVOCACY & COMMUNICATIONS At press time, there are no signs that the government will reopen. The longer the shutdown goes on, the less likely there will be any real action in Congress this year. Not only is the showdown over the border wall stalling progress on a legislative agenda, so is the partisan division that figured in the last Congress. With little action to report, I’m sharing two charts in place of my column that provide a view of legislative priorities, past, present, and future. One chart shows major actions taken in the last Congress and what was left unfinished. Most notable for manufacturers is the enactment of the new tax law that dramatically reduced the corporate tax rate, extended bonus depreciation, and made permanent small business expensing. It was the first significant overhaul of our tax system in more than 30 years. The second chart illustrates the priorities for democrats in the 116th Congress. I think the best chances for bipartisan action is approval of the USMCA (NAFTA 2.0) and passage of an infrastructure package. As time marches on, however, presidential election politics will add to the long list of issues disrupting the agenda.

Major congressional actions in the 115th Congress ECONOMY & LABOR The tax reform bill H.R. 1 reduces the corporate tax rate to 21 percent, almost doubles the standard deduction, places a $10,000 cap on state and local tax deductions, and creates a tax deduction for pass-through businesses.

OPIOIDS & HEALTH CARE Congress passed two bills that addressed the opioid crisis, including regulations for treating substance abuse in Medicaid and Medicare recipients. Other health care bills addressed the reauthorization of the FDA, medical research funding, and children’s health care.

APPROPRIATIONS Congress passed two funding packages for FY2019 but failed to pass the remaining appropriation bills, resulting in a partial government shutdown. The shutdown stems largely from disagreements over President Trump’s proposed $5 billion border wall.

CRIMINAL JUSTICE The bipartisan criminal justice reform bill includes reducing sentencing for prior drug felonies and prohibiting the use of restraints on pregnant inmates. Other bills related to crime related to human trafficking and sexual assault.

FOREIGN AFFAIRS Bills related to sanctions dominated the foreign affairs bills in the 115th Congress. The sanctions were enacted against Iran, Russia, and North Korea.

AGRICULTURE Congress passed a $867 billion Farm Bill, authorizing major food and nutrition, land conservation, trade promotion, and other miscellaneous programs until 2023. The final bill did not include restrictions on SNAP benefits.

INFRASTRUCTURE The most notable piece of legislation related to infrastructure was the FAA Reauthorization Act of 2018, which reauthorized federal aviation programs. Congress also passed legislation for water resource development and hydroelectric energy.

EMERGENCY RESPONSE Three emergency response bills addressed Hurricanes Harvey, Irma and Maria, and one bill provided additional funding for disaster relief.

Of House Democrats’ plans, the most likely to gain GOP support are improving infrastructure and cutting drug prices Democrats’ legislative priorities for the 116th Congress REFORM CAMPAIGN ETHICS & VOTING RIGHTS • Lessen the effects of lobbying on policy and enforce ethical campaign financing • Require presidential nominees to release tax returns from the three most recent taxable years • Expand voting rights, end partisan gerrymandering

REVAMP U.S. INFRASTRUCTURE • Improve transportation infrastructure, water systems, broadband and more • Demands for any infrastructure to include clean energy tax credits and provisions for research of new technology

ADDRESS CLIMATE CHANGE • Establish measures to cut carbon pollution and counteract the Trump administration’s rollback of environmental protections • Enact a Green New Deal, which would transition all electric power to renewable sources in 10 years

ROLL BACK GOP TAX REFORMS • Increase the corporate tax rate from 21 percent to as high as 28 percent ; increase rates for high-earning individuals

CUT DRUG PRICES & FORTIFY OBAMACARE • Decrease drug prices, in part by allowing Medicare to negotiate prices and requiring manufacturers to be more transparent about pricing • Fight litigation that could strip away the ACA’s protections for people with preexisting conditions

RAISE THE MINIMUM WAGE • Pass legislation for a $15 per hour federal minimum wage, up from $7.25

Sources: Paul M. Krawzak, “House Democrats’ budget to assume corporate tax increase,” Roll Call, Jan. 7, 2018; Lauren Fox and Clare Foran, “House Democratic priorities in new Congress: Trump tax returns and tackling corruption,” CNN, Nov. 30, 2018; Jacob Pramuk, “Nancy Pelosi and House Democrats take control – here are the policies they plan to pursue,” CNBC, Jan. 3, 2019.


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MARKET DATA REVIEW

How long can the good times roll? BY PAT MCGIBBON CHIEF KNOWLEDGE OFFICER U.S. producers of manufacturing technology always get a little nervous when the orders get too good to believe. That nervousness often sets in after 24 months of expansion. Yet, no one flinched this past summer as that mark came and went. Backlogs were still growing. August 2018, a month before IMTS, posted half a billion dollars in orders – unheard of! Then IMTS did not fail to deliver a topper to the August numbers as orders spiked to more than $600 million. October was unexpectedly strong, and November was seven percent higher than November 2017. Expectations are that U.S. consumption of manufacturing technology in 2018 will be a stellar 20 percent larger than 2017. The question is how long the expansion will continue. Stock market swings, concerns about the government shutdown, and continued trade friction with major trading partners have many businesses concerned about the ability of manufacturing to grow even modestly in 2019. The growth in backlogs has slowed to a crawl though, and in some products, they are at levels not seen since the 1980s. Other signs of growing pains began to appear late in November 2018 as well. Finding transportation to deliver machines became problematic. Riggers to site machines on customers’ floors were equally difficult to schedule. These are two issues that continued into January and don’t seem likely to ease until February at the earliest. The “goldrush” in manufacturing technology orders seems to have hit the limit but members and analysts don’t expect a recoil in order activity. In fact, members and analysts alike have healthy outlooks for continued growth in 2019. The pace will be considerably slower throughout the year. There are a couple of voices looking for a soft Q4 and a brief downturn in early 2020. However, the outlook for capital spending over the next three to four years is positive. Key to the outlook are four points.

The auto industry is once again moving the responsibility for investment in capital spending further down the supply chain. This is particularly true in the area of power train components. Members in the east and great lakes region have shared that their usual customers for cells and systems related transmission projects are still doing design and assembly but have pointed them toward other companies that are making the components for them. The trend is broader than just the power train element of the business. As the Big 3 did in the 1990s, second tier systems suppliers to the auto industry are looking to place the capital burden further down the supply chain. This likely means more companies involved in the process; with smaller capital investments per company; and probably a greater total investment number. The aerospace industry started 2018 off with a bang but the fourth quarter saw lower order numbers for the sector in each consecutive month. However, the backlogs in delivers for both Boeing and Airbus’s are a challange. Although Boeing has bought Embraer and Airbus’ acquisition of the Bombardier C-Series jet, it suggests that there is a possible opening for a new manufacturer or even the expansion of a key supplier’s portfolio to fill a gap that is forming in the regional/large format jet market. This is a supposition that Richard Aboulafia offered up in his November blog with a very reasonable scenario. Space programs are growing more commercial with three different private companies building platforms and more are likely to be formed. Though the government shutdown has put a hold on contracts concluded by the defense depar t ment, defense spend i ng is

projected to increase significantly over the next two years. R&D in the aerospace area and continued expansion of the domestic and export of fighter programs suggest growth in the program throughout 2020. The aerospace industry is poised for a strong 2019 in capital spending through out the supply chain. The last two points will provide growth in the next couple of years but unfortunately government action — or inaction as it may be — will determine the strength of the growth. North America continues to “gray” as they say, and this will be a boon to the medical equipment market. The medica l equipment industry’s capital spending is becoming an increasingly important market for our industry. For the first time, it became the third largest source of orders in a single month. The other area is off-highway and construction equipment. While our population has aged, our roads, bridges, and infrastructure elements are past gray and approaching decrepit. It is amazing something hasn’t been done yet as this is the single issue that both parties in Congress can find common ground. Some states have already begun working on projects that can no longer be put off. The situation will be an epidemic in the near future, which will require national attention that will drive hundreds of billions of dollars in new work. This will lead to a dramatic increase in demand for products in a sector that has already seen a significant rebound in 2018. By the time that the orders placed in 2018 are finally in place on factory f loors somet ime in

2 019 , it i s h i g h l y likely there will be a pause as manufacturers acclimate to the productivity that they have just put in place. In 1998, after a six-year run on growth in orders for manufacturing technology, many manufacturers came to realize that they had bought fewer machines, but the productivity of these machines was considerably more than they anticipated. Our industry endured a “pause” in orders even as manufacturing output continued to expand. This phenomenon was studied and reported by Dr. Joel Popkin in a paper released in 2000 titled, “Producing Prosperity – Manufacturing Technolog y’s Unmeasured Role in Economic Expansion.” The pause permitted manufacturers to “grow” into their new technology. The investments made in innovative technologies, more productive equipment, and significantly more automation will likely produce more than anticipated output. While manufacturers today are more aware of the technologies’ capabilities they have recently put on their floor, the value-add of automation is still a learning curve most manufacturers are climbing. As a result, there may be a pause in investment in the 2020–2021 timeframe. But it is likely to be a short one as the situations in significant customer industries will require additional tooling, capacity and new technology. Conctact Pat at pmcgibbons@AMTonline.org for more deeply detailed data.


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EXHIBITIONS

New ideas from New Orleans BY PETER R. EELMAN VICE PRESIDENT, EXHIBITIONS Last month several staff members from the AMT Exhibitions Department attended the International Association of Exhibitions and Events (IAEE) trade show EXPO! EXPO! in New Orleans, Louisiana, and brought back some exciting ideas for exhibitors. Beacon Technology and Customized Experience Solutions are two new trends that emerged from the show that will make it easier and faster to connect and grow relationships with potential customers. 1. Beacon Technology With a growing number of companies providing beacon technology and enhancements in AI, this offering is gaining in intelligence and can help exhibitors pinpoint and position themselves in front of potential buyers. You’ll be happy to know IMTS tried out beacon on a small scale at IMTS 2018. Beacon can be a small wireless transponder attached to the registration badge or simply loaded as a show app to a mobile device. Beacon enables location accuracy via Bluetooth ® low energ y (BLE) allowing exhibitors to send messages and promotions to visitors as they enter your pavilion, as well as create contextual experiences near or in an area where it’s installed on LED screens or their mobile device. Imagine sending custom product information, invites for demos, coupons, or special offers to those visitors just outside your booth. Or imagine capturing the contact information of those who walked into your booth, but whose badges weren’t scanned with the lead retrieval system. You’ll be able to connect with them instantly— not just before they leave the building, but before they leave your vicinity! 2. Customized Experience Solutions E xperience, Experience, Experience are the three magic words for exhibitors. Executing a customercentric and personalized experience in a big show is no small challenge. Several vendors presented some new ways to entice those passing by to enter your booth. They include: • Display images of visitors walking near your booth on plasma screens and LED screens. • Personalized giveaways with the visitor’s name and photo.

• Recharging area for visitors’ mobile devices, and perhaps comfy chairs or hammocks. However, it’s personalization and attention by salespeople in the booth that will encourage them to stay and have a conversation. Nook and ZenSpace offer a quiet space for that conversation. They certainly lured AMT staff, who were impressed with the immediate noise reduction of the Nook Event Pod and the ZenSpace SmartPod. Both can be used in booths or distributed around an event to form pop-up meeting zones with branding sponsorship opportunities. The Nook Pod offers seating for two to six people, as well as an exterior that can be covered in whiteboard. The ZenSpace Pod offers room for two to four people, and a more secure space with a glass door that can be locked. Facial recognition registration and nextgeneration audience engagement software are two new technologies that will enhance the visitor experience. 1. Facial Recognition Registration T he IMTS registration partner, CDS, has launched facial recognition registration. Visitors can register online with any mobile device with a camera. When they arrive at McCormick Place, they can more quickly and securely grab your registration information just by looking at the registration console. 2. Next-Generation Audience Engagement Exhibitors who give presentations might want to look at Glisser. It is a presentation software, integrated audience response system, and event analytics platform that measures ROI and feeds into a company’s CRM system. The Glisser app shares slides from presentations to personal devices instantly, then uses audience interaction to improve the delegate experience and provide powerful event analytics. AMT staff liked how it improves the visitor experience by livening up PowerPoint with its easy-to-use platform, live polling, digital Q&A, and Twitter wall. With beacon technology and customized experience solutions, the possibilities are infinite when it comes to engaging and interacting with trade show visitors. The facial recognition registration and next-generation audience engagement software promise to speed up visitors’ check-in time at the show and enhance the conference sessions. You can bet your A MT Exhibitions team are working for you to have the latest show technology at IMTS 2020!

1. Beacon Technology

2. Customized Experience Solutions

3.

Welcome back [First Name]!

Facial Recognition Registration

4. Next-Generation Audience Engagement


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HOUSTEX, A regional manufacturing technology show brought to you by AMT & SME At the recent IMTS Winter Economic Update webinar, AMT Chief Knowledge Officer Pat McGibbon discussed how the economic indicators for the energy and power industry are trending upward: Industrial Production Index is at 91.3 percent and Capacity Utilization is at 82.5 percent. Micron Technology, Kinder Morgan and DTE Energy all have notable building projects at $1 billion and above. With the energy and power sector expanding, you’ll want to make sure you visit HOUSTEX, February 26-28, 2019, at the George R. Brown Convention Center in Houston, Texas. Co-produced by AMT and SME, HOUSTEX is an interactive experience, dedicated to showcasing advanced technologies and processes to help manufacturers innovate and create industry transformation. While interacting with the latest manufacturing technology on the sold-out show floor, visitors also have access to keynote and technical presentations, workshops, and networking events. Manufacturers will find solutions in automation, smart manufacturing, additive manufacturing, blockchain technologies, waste reduction and workforce development from industry specialists and peer panels. Featured speakers and highlights include: • Mikhail Gladkikh, the Additive Manufacturing Supply Chain Leader for Baker Hughes, will share how Baker Hughes, a GE company, is transforming the oil patch with 3D printing. Gladkikh will survey the oil and gas industry and highlight a case study on the benefits of

additive manufacturing and how it is being exploited to produce functional, production parts used in downhole applications. Gladkikh will close with the future opportunities for additive manufacturing in the oil and gas industry. • M att Tyler, President/CEO of Red Rabbit Automation & CEO of Vickers Engineering, and Corey Carolla, Vice President – Corporate Development at Red Rabbit Automation, will take you on The Factory Automation Journey – sharing their insights on how to get started in automation. The duo will cover Vickers Engineering’s journey with automation, as well as how it changed their culture and spring boarded growth. They will also showcase Red Rabbit’s approach to modular automation and how it is suited for those wanting to begin. Additionally, SME’s Additive Manufacturing Seminar Series, a co-located event with separate registration, offer exclusive access to industry leaders and experts who are implementing AM in their business operations. Seminars include: • Implementation of Metals AM into New Markets • Maturation of Advanced Manufacturing for Low-

Experience three days of Southwest manufacturing solutions at HOUSTEX. The event features informational sessions covering trending manufacturing topics, a sold-out show floor with nearly 100 product introductions, a full-day workshop, a full-day co-located seminar focused on additive, and the opportunity to connect with decision-makers and likeminded professionals.

Cost Sustainment (MAMLS) • Metal Additive Manufacturing Myths: The Truth About Powder Reuse and its Effect on Mechanical Properties • Applications of Additive Manufacturing in Military Simulators Design • Improving Quality & Reliability for Oilfield Services Products via Additive Visit HOUSTEXonline.com/HT19AMT for more information and to receive a complimentary registration.

Additive Manufacturing Applications February 26 8:30 a.m. – 4:30 p.m.

The Toyota Kata: Deploying a Starter Kata

February 26 – 28, 2019 George R. Brown Convention Center Houston, Texas

February 27 8 a.m. – 4 p.m. * Please note: The seminar and workshop require a separate registration fee.

Call Today: 800.733.3976

REGISTER TODAY!

Redeem your complimentary registration: houstexonline.com/HT19AMT 12300_AMT_Ad_6.3 x 9.95.indd 1

1/11/19 4:25 PM


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SMARTFORCE

IT’S ON US. BY GREG JONES VICE PRESIDENT, SMARTFORCE DEVELOPMENT If you’re a space nerd like me, then you were captivated by the Mars Insight rover mission and the landing on the red planet in December. NASA was established the year I was born (1958). Sputniks had already been launched, and the race to the moon was going on during my entire childhood. I can’t help but geek out at moments when NASA sets a new milestone. The arrival of the Insight lander on Mars and more recently, the photos from NASA’s New Horizons spacecraft’s fly-by of Ultima Thule, the most distant object ever visited by a spacecraft, are reminders that it’s on us in the manufacturing industry to be able to produce parts that can withstand the challenge of space travel. That it is on us (the United States) was made clear when NASA’s recent accomplishments were followed quickly by news of China’s Chang’e-4 team landing on the far side of the moon. NASA’s Administrator, Jim Bridenstine, congratulated the Chinese. He later added that the next voice from the surface on the moon would be spoken in English. We all know a manufacturer who supplies parts to NASA, SpaceX, Blue Origin and others, and in some cases, you may make those parts at your company or they are made on the equipment that you sell to NASA and its contractors. On a visit to an aerospace and defense contractor’s facility in 2018, I had the opportunity to view the machines and see the processes that went into making parts of the explosive mechanisms that allowed the NASA Insight lander’s parachutes to open and its solar panels

to be deployed. You can bet that after years of testing and six months of space travel, every employee at that company was cheering the outcome of that mission along with everyone at NASA and all the space geeks around the globe. It’s moments like this that make you think about the people in manufacturing who make advanced technology and engineering happen. For me, it’s a reminder of the good work that we’re capable of in our Smartforce Development efforts at AMT if we can change one more mind and get one more student to consider the importance of an education in science, technology, engineering, art and design, and math. Changing minds is why we bring 3D printing air rocket challenges and rover challenges to the Smartforce Student Summit at IMTS. It’s why we bring advanced robotics, generative design, and additive manufacturing to the summit. It’s why we use proceeds from the Miles for Manufacturing 5Ks at our events to donate to robotics teams and provide technology and equipment to schools. If we can change tens of thousands of minds, then we’re doing our job to encourage more young people to seek a career in manufacturing. It’s on us to make sure that the missions continue. Above all else, we need the people with the brightest minds — the Smartforce. Send me your comments and suggestions at g jones@amtonline.org or call me at 703-827-5203. For more frequent updates about Smartforce Development, follow @GregoryAJones on Twitter.


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TECHNOLOGY

The MTCouncil Blog BY JOHN GALLANT EXECUTIVE PRODUCER, MANUFACTURING TECH COUNCIL Hi Everyone, The January webinar for the Manufacturing Tech Council (MTC) focused on advanced sensors and I want to share some great content that provides additional perspective and insight into the rapid evolution of sensor technology. From the Industrial Internet of Things to autonomous vehicles, Industry 4.0 to medical care, new types of sensors are changing the game and creating new opportunities for improved operations, reduced maintenance, and new revenue sources. In this interview, a top executive with InvenSense, a TDK company that is focused on the MEMS (micro-electro mechanical systems) market, shares his thoughts on how advanced sensors will drive changes in robotics, wellness, and smart factories. The interviewee, Dr. Peter Hartwell, shares this point about IIoT in particular: “Sensors are the center of the IoT for gathering, processing, and outputting valuable data. Sensors will ultimately enable connected devices to behave autonomously by being contextually aware of their environment, and thus able to make independent, intelligent decisions. All of this data collection, processing, and transmission must take place in a way that offloads processing from primary applications, thereby saving system power and improving performance in always-on scenarios.” Quality magazine looks specifically at how enhancements in sensor technology are improving quality control. “Thanks to advancements in laser measurement technology, sensors can now measure more challenging targets (including clear, reflective, and low contrast targets) and can handle multiple inspection tasks with one sensor. In addition, with IO-Link communication, it is becoming easier to track sensor performance, identify trends in inspection results, and even predict when maintenance is needed so that simple problems like a dirty lens can be fixed prior to sensor failure.” If you’d like to learn more about the IO-Link networking protocol, you can read this piece from Wikipedia: https://en.wikipedia.org/wiki/IO-Link. The presentation from AMFitzgerald and Associates takes a little while to gather steam (the meat of the material really begins at slide 8), but it provides a good overview of some critical advanced sensor technology to watch for the future. That list includes event-driven sensors, biodegradable batteries, 3D-printed sensors, and more. The company also looks at what the emergence of these sensor types means for various industries. Note: The appendix mentions a number of papers and research reports that appear to be quite valuable. I wouldn’t read them to the family around the fire, but there’s a lot of intellectual firepower therein. If you’ve found other great content on advanced sensors or other emerging technologies we’re watching, let me know and I’ll share with the group. To find out more about the MTC, contact Nina Pfister at nina@tractiontechnologypartners.com for a demo. Thanks, and happy reading.

The Future of Collaborative Robots FORECAST FOR COLLABORATIVE ROBOT REVENUES 7,500 30% of robots sold in 2027 will be collaborative

5,000

2,500

0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

PICK & PLACE, ASSEMBLY & MATERIAL HANDLING Welding Material Handling Pick & Place, Assembly and Material Handling will account for 75% of cobot revenues in next 5 years

Painting Assembly Palletizing & Depalletizing Pick & Place Other 0

500

1,000

1,500

2,000

2,500

ASPE 2019 annual meeting highlights Research papers were presented on these topics. Industrial sponsors also made brief presentations on their products and capabilities on the main stage.

BENJAMIN MOSES TECHNICAL DIRECTOR, MANUFACTURING TECHNOLOGY This year’s American Society of Precision Engineering’s (ASPE) 33rd Annual Meeting was held November 4-9, 2018, in the Red Rock Casino in Las Vegas. The Annual Meeting included tutorials taught by the world’s leading experts in the field, an open forum to allow brief, informal presentations, a business forum to discuss the management of technology, and technical exhibits displaying a wide range of advanced technology products. ASPE also holds topical meetings throughout the year that cover a specific precision engineering topic. The precision engineering toolbox includes design methodology, uncertainty analysis (error budgeting), metrology, calibration/error compensation, precision controls, and actuators/sensors. ASPE’s enabling technologies include, but are not limited to, the following industries: microelectronics, automotive, optics and photonics, MEMS, nanotechnology, defense, and machine tools. ASPE focuses on many areas of interests that are important in the research, design, development, manufacture and measurement of high accuracy components and systems. (http://aspe.net/about-aspe/)

The annual meeting covered several topics. The main themes for 2018 were: • Characterization • Machining Process Improvements • Controls & Mechatronics • Micro-Nano Technologies • Metrology-Machine Characterization • Metrology • Precision Design of Instruments • Precision Machining

Winning conference presentations included: • Real-time in Situ Metrology of the Shape of an X-ray Adaptive Mirror Using an Array of Interferometric Absolute Position Sensors (Badami, Huan, & Idir) • Determination of Cutting Forces Using a Flexure-Based Dynamometer: Deconvolution of Structural Dynamics Using the Frequency Response Function (Gomez & Schmitz) • Surface Metrology Using Extended-Range Partitioned Aperture Wave Front Sensor (Beaulieu & Bifano) Papers and proceedings can be purchased here: https://www.journals.elsevier.com/precision-engineering Contact Ben Moses at bmoses@AMTonline.org for more information.

Upcoming Events 34th Annual Meeting Monday, Oct. 28 – Friday, Nov. 1, 2019 Wyndham Grand Pittsburgh Downtown Pittsburgh, Pa. USA

Publications Conference proceedings can be purchased here: http://aspe.net/technical-publications/ proceedings/


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GLOBAL SERVICES

Global opportunity awareness for 2019 EDWARD CHRISTOPHER VICE PRESIDENT, GLOBAL SERVICES To better serve our members in 2019, there will be some welcome additions to the palette of information services offered by Global Services. AMT’s Strategic Analytics Department and our international tech centers have, for years, supplied AMT members with the business intelligence necessary to make sound strategic decisions to drive sales. This has, for the most part, been on a reactive basis initiated by specific member inquiries. There are the various business intelligence apps available through our MTInsight platform where curated data and powerful analytics yield actionable intelligence. Kudos to all of you who have taken advantage of all of this. However, many members do not even know these sources and services exist at AMT! So, one of our resolutions for 2019 is to bring more international business intelligence to you across a variety of platforms: 1. In addition to the normal international article posted by a member of our global management team, we will have a monthly “opportunity” infographic in this publication with the dope on some pertinent international intelligence that is easy to digest. Think International Briefing

Breakfast presentations at IMTS. Oh, you missed those? It’s great stuff! Visit: www.amtonline.org/ GrowYourBusiness/OverseasTechCenters. The download link to the presentations is the second item under the global map. This will be in addition to the normal international article posted by a member of our global management team to keep you up to date from our “feet on the ground.” 2. A series of webinars are planned to present strategic topics for you in the convenience of your office. The first of these will take place on February 19 and cover recent developments and opportunities in Brazil. It will include: • Why Brazil now? • What is new and different this time? • Why should you put Brazil on your radar screen in 2019? • What are the best prospects for your products? • Who are your potential customers? • How to jump-start your sales in Brazil – immediate opportunities. • How will AMT help you and support the growth of your business in Brazil? We will be sending emails to those who have previously expressed interest in Brazil. If you would like to participate, shoot me a quick note at echristopher@amtonline.org. We’ll be sure you get an invite.

3. T  here are numerous revisions in the works for the international content on AMTonline. The “International Trade Resources” toolbox will be substantially expanded to include additional links and documents to assist you, whether a seasoned global business pro or an initial explorer, with a whole myriad of applicable topics useful for expanding business abroad. 4. Would you like a platform to ask questions of your international business peers? We will be initiating a “Global Link” forum where members can throw out questions to AMT’s Global Marketing & Sales Committee for some expert advice on any international business topic. We’ll let you know when this goes live, but look for it in the second quarter. Of course, we will continue to support our members’ international sales efforts in our global tech centers by facilitating a local presence with HR searches and proxy hires, machine demos, office space, market penetration review sessions, sales leads, field service support, import logistics and warehousing, distributor selection, and much, much more. The global manufacturing outlook remains strong in 2019 so don’t miss out on the opportunities! Our mission is to help.


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Mexico manufacturing board optimistic for 2019 CARLOS MORTERA GENERAL MANAGER, AMT MEXICO In December 2018, AMT organized the annual meeting of Mexico´s Manufacturing Processes Advisory Board. It took place at Schneider Electric’s facility in Monterrey. In addition to our host Schneider, also represented were: Case New Holland, Tremec, Paulo, Brembo, Cummins and domestic job shops both from the metal cutting and forming industries. Experts from the die and mold design industry were present, as well as executives from the Mexican Auto Parts Manufacturers Association. The overall report for 2018 from the industries represented (automotive, agriculture, electrical, aerospace, and job shops) was that the year was not without challenges, but all reported aggressive revenue growth of 20 to 40 percent and expect a strong 2019, as well. In order to accomplish this continued growth, they see companies supplying manufacturing technology to strengthen their local presence in service, applications, and products. One of the areas that everyone felt was underdeveloped and could use a comprehensive strategy to bring more state-ofthe-art technology to is the design and fabrication of dies and molds. The Mexico die and mold market consumes in excess of USD $2.5 billion annually – a very interesting opportunity for our members. A broad discussion took place regarding the incorporation of the IIoT strategy in the Mexican manufacturing sector. There are currently excellent examples of best practices as we witnessed at the Schneider facility and the various job shops we visited, but the consensus is that the average job shop is still challenged regarding implementation strategies. AMT indicated that they are at the forefront of the initiative to deploy the interconnectivity architecture in Mexico, due to participation on the committees for

interconnectivity sponsored by the Nuevo Leon State and the federal government. The board members offered to collaborate and support the initiative with benchmarking visits. The board members reaffirmed the projection that auto, aerospace and electrical manufacturing in Mexico will continue to grow and expand. Domestic and international markets are proving to be resilient. Manufacturing technology consumption continues to grow and now that the USMCA (NAFTA 2.0) negotiations are closed, everyone from the consumer side felt positive and optimistic about increased value add and complimentary process to reach the new “regional content” definition. All attendees were surveyed regarding their future needs and the results were quite positive: • Every participant reported a 70 to 80 percent capacity utilization • All indicated their investment plans will exceed those of 2018 • 50 percent of the participants have a strong and well-developed roadmap to implement interconnectivity or to otherwise embrace the IIoT. • The bulk of the metal cutting respondents indicated there are entertaining additive manufacturing investments. • The average age of their equipment is from eight to 10 years • 80 percent of the activities related to corrective maintenance are performed by their own staff. Their expectation is for a better representation from the suppliers to increase investment in technical service. Mexico continues to be a strong player regarding the consumption of manufacturing technology. In the last seven years USD $14 billion of machinery has been consumed and the trend is sustainable. The manufacturing base continues to strengthen, and the fundamentals are sound. The new president is favoring manufacturing so Mexico can continue to be a successful supplier to the world. If you want to tap into this market with a minimum investment, please contact AMT Mexico by reaching out to cmortera@amtonline.org.

FOR UPCOMING ANSI B11 AND ISO MACHINERY SAFETY MEETINGS, GO TO www.b11standards.org Contact Dave Felinski, B11 Standards, Inc., at dfelinski@b11standards.org for updated information.


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Additive manufacturing seminar at EASTEC 2019 In 2019, EASTEC will offer a one-day seminar titled Additive Manufacturing Technology – Transforming Traditional Manufacturing. Leading additive manufacturing (AM) experts, who have implemented these technologies in their own operations, will speak at this seminar. These manufacturers have used AM to create production-ready parts, and have disrupted how their companies think, plan and implement traditional manufacturing operations. Hear from these leaders as they discuss various case studies and practices facilitated through additive manufacturing, including the parts they produce. See how additive technologies have enhanced tooling, optimized part design and created new opportunities never imagined. EASTEC takes place May 14-16, 2019, in West Springfield, Mass. Plan to attend this informative seminar on Wednesday, May 15, 8:30 a.m. – 3:00 p.m. Visit EASTEConline.com/AMT for complimentary registration or more information.

MAY 14-16, 2019 EASTERN STATES EXPOSITION | WEST SPRINGFIELD, MA

Build Your Sales Pipeline at EASTEC 2019! EASTEC is the #1 manufacturing trade show in the Northeast 49% of EASTEC attendees are business owners, executive, managers or engineers

Materials Processing Equipment Technical Advisory Committee (MPETAC)

The EASTEC exhibit floor is 90% sold.

2019 Schedule

Reserve your exhibit space today!

• March 5 • May 14 • August 20 • October 22

easteconline.com/AMTNews exposales@sme.org | 800.733.3976 Official Media Sponsor

For more information, visit www.tac.bis.doc.gov. EASTEC® is produced by SME

CALENDAR 2019 JAN

24—30 IMTEX Bangalore, India 25 Winter Economic Update Webinar and Meeting Cincinnati, Ohio

FEB

12 Manufacturing Tech Council Webinar: Sensor Technology Online 20 CMTSE Online Exam Online

20—21 MTConnect Institute Standards Committee Meeting Florence, Ky. 26—28 HOUSTEX Houston, Texas MAR

6—10 The MFG Meeting Tucson, Ariz. 12 Technology Issues Committee Chicago, Ill. 13 Deadline to register for May 8, CMTSE online exam Online

19 Manufacturing Tech Council Webinar: Hybrid Manufacturing Online

APR

9 Manufacturing Tech Council Webinar: Digital Twin Online 15—20 CIMT Beijing, China

MAY

7—11 EXPOMAFE Sao Paulo, Brazil 8 CMTSE Online Exam Online

14 Manufacturing Tech Council Webinar: Manufacturing As a Service Online 14—16 EASTEC West Springfield, Mass. 30 Deadline to register for July 24, CMTSE online exam Online

JUN

17—20 MT360 Santa Clara, Calif. 19 Manufacturing Tech Council Webinar: Council Meeting @ MT360 Online

JUL

24 CMTSE Online Exam Online

AUG

21 Deadline to register for October 16, CMTSE online exam Online

SEP

24–26 WESTEC Long Beach, Calif.

OCT

2—4 MTForecast Cleveland, Ohio 16 CMTSE Online Exam Online 22—24 SOUTH-TEC Greenville, S.C.

11–12 D19 Distribution Summit Detroit, Mich. 16—21 EMO Hannover Hannover, Germany

WELCOME NEW MEMBERS Edmunds Gages Farmington, Conn. Primary Product: Quality/Metrology

Adion Systems Bellingham, Wash. Primary Product: Controls/CAD/CAM/Software

Niigata Machine Techno USA, Inc. Elk Grove Village, Ill. Primary Product: Turning/Boring/Drilling/Milling

SMEC America Corp. Mount Prospect, Ill. Primary Product: Turing/Boring/Drilling/Milling

SLM Solutions NA, Inc. Wixom, Mich. Primary Product: Additive Process

True Analytics Manufacturing Solutions, LLC Plainfield, Ind. Primary Product: Controls/CAD/CAM/Software

SMC Corporation of America Independence, Ohio Primary Product: Automation/Integration/Robotics/ Custom Systems

Global Tooling Solutions Walpole, Mass. Primary Product: Workholding/Tooling

ProMANAGE Smart Manufacturing Solutions Chicago, Ill. Primary Product: Controls/CAD/CAM/Software

Profile for AMT - The Association For Manufacturing Technology

AMT News - January 2019  

AMT member newspaper

AMT News - January 2019  

AMT member newspaper

Profile for amtonline