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OCT 2019

AMT - The Association For Manufacturing Technology

MARKET DATA REVIEW: Die Welt ist Gut … p. 3

SMARTFORCE: Education and workforce development in additive manufacturing … p. 4

Production-quality additive manufacturing faces growing pains BY TIM SHINBARA VICE PRESIDENT & CHIEF TECHNOLOGY OFFICER In the past several years, additive manufacturing (AM) has unquestionably moved from polymer-based prototypes to production-quality metals, but the industry is in the midst of some major growing pains, specifically in the areas of industry standards, quality assurance (QA) and realizing business ROI. In this article, we take a look at these challenges, and in the next issue, we’ll look at AM opportunities.

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IMTS: Your exhibitions team’s summer activities update … p. 8

STANDARDS IN FLUX The industry recognizes both how many standards are necessary for international AM standards to be AM to be broadly adopted, as well established and adopted globally. as how many standards currently exist and need to be coordinated and QUALITY ASSURANCE harmonized. ASTM International’s The quality assurance (QA) of AMCommittee F42 is the main standards produced metal parts is probably the body for AM in the United States. It greatest obstacle affecting the speed currently has 22 standards and has of AM technology adoption right defined seven printing processes. now. Feedstock materials (especially In coordination with ASTM, ISO, powders), print processes, and final an independent, international parts are subject to a huge amount organization has also developed of variability in terms of material standards for AM within their and mechanical quality. Rigorous technical committee, TC 261. To JASON JONES, CEO quality standards and inspections are coordinate standards development HYBRID MANUFACTURING TECHNOLOGY necessary to ensure the consistency, between organizations, the Additive repeatability, and reliability of final Manufacturing Standardization parts is met. Planning, building, Collaborative (AMSC), a collaboration between America and implementing a certifiable QA process requires time, Makes & American National Standards Institute (ANSI), training, and resources, as well as investment in new was created. technologies, processes, and talents. However, hundreds of other AM standards and Metal powder properties must be procedures have been developed by other organizations consistent in every batch, including in the meantime. These include standards established particle size distribution and the by AMST, SME, National Aerospace and Defense composition, size, and shape of the Contractors Accreditation Program (NADCAP), the 3MF particles themselves. Additionally, Consortium, SAE International Additive Manufacturing for safety-critical applications such as Com m it tee AC7101’s aircraft parts or medical devices, Aerospace Material the material used must be Specifications (AMS), ... Continued on Page 6 NASA, DOD, the U.S. Navy, the U.S. Army, as well as different nations. It will take many years for a consistent set of national and, u lt i m a t e l y,

...since metal is now being used for actual production parts, substantial postproduction finishing is almost always a requirement.


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INDUSTRY NEWS UPCOMING EVENTS

For more information visit: www.amtonline.org/calendar/

April 1–5, 2020 The MFG Meeting Fort Lauderdale, Fla.

May 12–14, 2020 MT360 Santa Clara, Calif.

September 14–19, 2020 IMTS 2020 Chicago, Ill.

October 28-30, 2020 MTForecast St. Louis, Mo.

2019

2020

15 Manufacturing Tech Council Webinar: Metamaterials in Manufacturing Online

23 AMT Show Committee Cincinnati, Ohio

OCTOBER 9–10 AMT Show Committee Bourne, Mass.

16 CMTSE Online Exam Online

22 Webinar: Conversation with John Janstuch, author of Duct Tape Marketing Online NOVEMBER 6 Technology Issue Committee Byran, Texas 19 Manufacturing Tech Council Webinar: Cognitive Automation Online 20-21 MTConnect Standards Committee Valparaiso, Ind. 19-22 Formnext 2019 Frankfurt, Germany

2019

FEBRUARY 5 CMTSE Certification Online Exam APRIL 1-5 The MFG Meeting Fort Lauderdale, Fla.

22–24 SOUTHTEC Greenville, S.C.

OCT

JANUARY 20-21 IMTS Exhibitor Workshop Schaumburg, Ill.

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MAY 6 CMTSE Certification Online Exam 12-14 MT360 Santa Clara, Calif.

WELCOME NEW MEMBERS James Tool Machine & Engineering Inc. Morganton, N.C. Primary Product: Workholding Devices

Haven Manufacturing Corporation Brunswick, Ga. Primary Product: Cutting & Forming Tools

Sinico MTM US Inc. – Co. Middleburg Heights, Ohio Primary Product: Milling/Boring/ Drilling/Tapping

Asia Forging Supply Romulus, Mich. Primary Product: Sales and Service

I-CUT TOOLS Corp. Fullerton, Calif. Primary Product: Sales and Service

Taylor-Winfield Technologies, Inc. Youngstown, Ohio Primary Product: Automated Systems & Cells (Assembly/Forming/Joining/ Material Removal/Test)

MITSUBISHI ELECTRIC AUTOMATION, INC. NAMES NEW PRESIDENT Mitsubishi Electric Automation, Inc. (MEAU) announced that it has named Scott Summerville as its new president. Prior to joining Mitsubishi Electric, Summerville served as CEO of Omron Microscan after leading the sale of Microscan Systems, Inc. to Omron Corporation. Summerville has more than 30 years of experience in the automation industry, having spent most of his professional career at Rockwell Automation, where he held positions of increasing responsibility, including as president of the Asia Pacific region from 2003-2008. MITSUI SEIKI KOGYO, LTD. NAMES NEW PRESIDENT Kinichi Kato has been named president of Mitsui Seiki Kogyo, Ltd., the parent company of Mitsui Seiki USA, Inc. Kato has been with Mitsui Seiki for 40 years, having joined the company in 1979 as an assembly engineer. He became director/ general manager of the Machine Tool Division Production department in 2011 and was named a managing director in 2013 and a senior managing director in 2014. He most recently worked in Business Planning Development, where he was in charge of ISO certification and management.

JUNE 2 SMART Manufacturing Experience Pittsburgh, Pa. JULY 22 CMTSE Certification Online Exam SEPTEMBER 14-19 IMTS 2020 Chicago, Ill.

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Markus Stolmar

Simon Manns

Phil Wiss

Jason Barber

AMT NEWS Andy Kuchinski Director, Marketing & Communications

ADVOCACY Amber Thomas 571-216-7448 athomas@AMTonline.org

Gail McGrew Writer

BUSINESS DEVELOPMENT Travis Egan 703-827-5222 tegan@AMTonline.org

Kristin Bartschi Managing Editor Cesar Sosa Art Director Ashley Park Graphic Designer Submit company news articles to: AMTonline.org/membercms

ECONOMIC/MARKET TRENDS Pat McGibbon 703-827-5255 pmcgibbon@AMTonline.org

CARON ENGINEERING PERSONNEL APPOINTMENTS Caron Engineering announced that it has appointed Ryan Hegman as the new vice president of sales and promoted Brandon Spr inger to product support manager. Hegman Hegman has been work ing in the CNC machine tool industry for almost 20 years. He joined Caron Engineering in 2010 as the western regional sales manager before being promoted to national sales manager in 2013, where he led the sales force for the past seven years. Hegman will be focusing on promoting sales internationally. Springer Spr i nger st a r ted w it h Ca ron Engineering almost 15 years ago as a service technician and most recently served as a specialist in Caron Engineering’s product line of CNC optimization products. As product support manager, Springer will handle in-house product support for customers and integrators, be responsible for testing new products and features, and provide new product training for Caron service technicians, customers, and integrators.

UNITED GRINDING NORTH AMERICA ANNOUNCES KEY PROMOTIONS TO LEADERSHIP TEAM UNITED GRINDING North America has announced several organizational changes and promotions. These changes include an expanded executive vice-presidential position and a planned transition of leadership for the Tool Division. Richard Navratil The promotions include Markus Stolmar, who will transition from his role as vice president of the Tool Division to executive vice president, and Simon Manns, who will take over Stolmar’s leadership of the Tool Division after spending many years as the division’s technical sales manager. Sales support engineer Richard Navratil has been promoted to the Tool Division’s technical sales manager position. Outside the Tool Division, Phil Wiss has been promoted to regional sales manager IV, and Jason Barber was promoted to director of Information Services.

EXHIBITIONS Apply for space at IMTS 2020 Peter R. Eelman 703-827-5264 peelman@AMTonline.org Bonnie T. Gurney 703-827-5277 bgurney@AMTonline.org Mark Kennedy 703-827-5220 mkennedy@AMTonline.org

GLOBAL SERVICES Ed Christopher 703-827-5296 echristopher@AMTonline.org

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

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

SMARTFORCE DEVELOPMENT Greg Jones 703-827-5203 gjones@AMTonline.org

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

STRATEGIC ANALYTICS Chris Downs 703-827-5259 cmdowns@AMTonline.org

MEMBER SERVICES Kim Brown 703-827-5223 kbrown@AMTonline.org


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MARKET DATA REVIEW

Die Welt ist Gut BY PAT MCGIBBON CHIEF KNOWLEDGE OFFICER The two best places to build a deep understanding of the manufacturing technology eco-system are IMTS and EMO. These past couple weeks, EMO has been the center of the manufacturing world as innovators, builders, customers, investors, and enthusiasts converged on Hannover. The mood was one of concern and astonishment. The concern stemmed from the numerous challenges there are to growth. The trade wars—particularly the ChinaU.S. issue, where the ongoing institution of tariffs have prevailed for more than a year—have led to some multinational companies changing their international strategies. The Brexit situation was almost as common an issue as the trade wars. Billions of dollars of investments will be impacted as EU and non-EU companies’ strategies for supplying EU demand are turned on their heads. Still, members felt upbeat and positive about the audience in attendance, the projects discussed, and the innovations displayed. While crowds were lighter than in past shows, attendees from every industry engaged exhibitors in discussion on current projects. The most heartening news came from the interest shown in new equipment by the automotive supply chain as automotive orders throughout the year have been weak according to reports and discussions with AMT’s global counterparts. Each year, AMT meets with 25 other metalworking equipment associations from around the world at EMO

One example of the strategic decisions that the situation has led to included Emerson’s March announcement that they were bringing their garbage disposal production back to the United States from China. Several of the Asian managers shared similar stories, including an Aug. 5 set of announcements noting companies were moving plants home or to other nations. Asics has been relocating their athletic shoe plant from China to Vietnam. Ricoh announced they were moving their plant from Shenzhen to Thailand. Others chimed in that Nike and Adidas had already made similar moves. I think many people heading to Hannover were looking to walk into doom and gloom. While it was wet and cold the first day, the weather and the mood greatly improved throughout the rest of the week. All in all, Die Welt ist Gut - the world is good.

and IMTS. As with previous years, the presidents of the associations reported on market developments over the past year and expectations for the current and coming years—2019 and 2020. The global manufacturing technology market was very strong in 2018, so a cooling of the market could have been expected. Markets in 2019 are expected to fall between 4 and 28 percent, with two exceptions. Russia expects its manufacturing technology market to climb 2 percent in 2019, and the Indian machine tool association is projecting a 5 percent increase. Expectations among the 25 nations represented were split: 40 percent expected their markets to improve, 40 percent expected their markets to continue to decline, and 20 percent expected their markets to remain at 2019 levels. The forecasts for the metalworking markets were supported by positive numbers on trends in investment and GDP growth rates. The associations shared positive forecasts for investment spending in 2019, with most expecting investment growth surpassing 4 percent and the average rate topping 2 percent. The industrial production forecasts were not as encouraging as they fell well short of 2 percent on average. During the open discussions among the statistical general managers, there was a general concern over whether China or the United States would meet their 2020 growth expectations given the intensifying trade issues.

If you have any questions about the data, forecasts, or market issues noted above, don’t hesitate to contact me at pmcgibbon@AMTonline.org or call 703-827-5255.

GROSS OSS CA CAPITAL APITA INVESTMENT YEAR-ON-YEAR R-ON-YEARR % CH CHANGE 14% 12% 10%

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GDP P

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SMARTFORCE

Education and workforce development in additive manufacturing BY GREG JONES VICE PRESIDENT, SMARTFORCE DEVELOPMENT Additive Manufacturing (AM) has been advancing at Manufacturing USA Institute), ApprenticeshipUSA, such a rapid pace in the last few years that the ecosystem and others. Contact Lucinda Curry at RCBI at lcurry@ of schools that teach AM programs and grant individual rcbi.org for more information. students AM credentials, certificates, and degrees has Additive Manufacturing equipment solution been in catch-up mode. It’s imperative that industry providers like EOS have developed initiatives like drives the direction of the education market. their Additive Minds services to assist manufacturing The Technology Fundamentals program is a companies in upskilling staff, smoothing the learning key foundational component of curve, and deciding how the use all education programs in the of AM technologies can be part of manufacturing technology industry. a company’s strategy to improve Tooling U-SME has developed an their manufacturing processes and Additive Manufacturing Certification throughput. For more information, track, which is available to AMT v isit w w w.eos.info/press/eosmembers via MTUniversity. additive-minds. org. We have been recommending A d d it i v e M a nu f a c t u r i n g to individuals who are part of the Technology programs are growing Certified Manufacturing Technology across the landscape of U.S. Sales Engineer (CMTSE) Program engineering colleges and universities that they add this AM track of classes and are becoming terrific pipelines to their professional development for workforce development and plans and as part of their three-year GREG JONES, VICE PRESIDENT recruiting in engineering, service, CMTSE recertification process. This SMARTFORCE DEVELOPMENT and sales. We recommend frequent AM track is equally valuable to all visits and even participating in AMT members and members’ customers to develop an career fairs of the engineering schools in your community, understanding of the fundamentals of AM technologies. state, and region. You can also check with AMT Research There has been a renewed emphasis on apprenticeship & Education Affiliate Member schools about their AM programs, both by the last presidential administration programs and the possibility of recruiting graduates. and the current administration. The Marshall University As I hope you’re aware by now, AMT has been working Robert C. Byrd Institute (RCBI) for Advanced Flexible on ProjectMFG, an initiative with the Department of Manufacturing in West Virginia developed an Additive Defense (DOD) to develop a new 5-axis CNC machining Manufacturing/3D Printing Apprenticeship program skills competition. The goals of ProjectMFG are to solve in partnership with SME, America Makes (the AM the skills gap by raising awareness about new and exciting

...We frequently use these proceeds to purchase and donate 3D printers to STEM middle schools.

education and career pathways in U.S. manufacturing, improve perceptions about careers in our industry, elevate U.S. technica l education programs, and support U.S. defense industry capabilities and sustainability. The DOD intends to hold the National Championship for ProjectMFG at the Smartforce Student Summit at IMTS 2020. By that time, we plan to build an Additive Manufacturing component into the National Championship. Finally, speaking of the Student Summit: as you’re aware, we make donations to schools thanks to proceeds from the Miles for Manufacturing 5K event at IMTS. We frequently use these proceeds to purchase and donate 3D printers to STEM middle schools. This program gives young students a chance to familiarize themselves with the pathway to additive manufacturing careers, and we encourage our members to consider supporting their local middle school programs by donating 3D printers or anything else STEM teachers need in their classrooms. If you’re considering a donation but don’t know where to start, visit DonorsChoose.org to help teachers clear their lists of equipment, tools, and general classroom supplies.

For more information or more frequent updates about Smartforce Development, contact gjones@AMTonline.org, or follow @GregoryAJones on Twitter.


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Manufacturing Day brings manufacturing to the community BY GAIL MCGREW AMT STAFF WRITER Held annually on the first Friday in October, MFG Day took place on Oct. 4 throughout North America. It is designed to show students, educators, job seekers, elected officials, community leaders, and others the current state of manufacturing processes, as well as showcase potential careers and opportunities by encouraging thousands of companies and educational institutions around the nation to open their doors for plant tours and educational sessions. Companies that were unable to hold an event on Oct. 4 have the opportunity to hold it another day during the month because October is also Manufacturing Month. Several A MT members that hosted plant tours or other events include ABB; AstroNova, Inc.; GF Machining Solutions; Index C or por at ion; Jer gen s , I nc.; Mastercam/CNC Software, Inc.; Okuma America Corporation; Sandvik Coromant; Toshiba Machine Co.; and United Grinding North America. Started in 2012, MFG Day has grown every year, and this year, there are 1,265 events planned. Last year, 275,000 people participated in events across North America—and after attending these events, more than 80 percent of students said they became more convinced that manufacturing provides interesting and rewarding careers. MFG Day gives manufacturers the opportunity to open their doors to the public, connect the future workforce to potential employers, and update the image of manufacturing and manufacturing jobs in their communities through guided plant tours and educational events. The current state of manufacturing, including

the use of advanced technology, can be showcased and discussed. For companies in highly secure industries such as defense, virtual tours and events provide a similar educational experience. It is not uncommon for residents to be unaware of the manufacturing companies and facilities in their region because they are often located in office parks or remote locations, and they are rarely open to the public. By working together to promote the manufactur ing industr y during and after MFG Day, manufacturers address the skilled labor shortage they face, connect with future generations, put a contemporary spin on the image of manufacturing, and ensure the ongoing prosperity of the entire industry. Created by Founding Partner Fabricators and Manufacturers Association International in 2012, MFG Day is supported by many organizations aligned with its mission. Organizations that have played a vital role in working with FMA include the National Association of Manufacturers (NAM), the Manufacturing Institute (MI), the National Institute of Standards and Technology’s (NIST), and Hollings Manufacturing Extension Partnership (MEP). MFG Day is currently produced annually by the NAM with key contributions and support from the MEP and the MI. To promote MFG Day and provide resources on locations, the website www.mfgday.com lets users easily search locations by city and region. The site also includes current information on available scholarships, success stories, and other useful information. 

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ON COVER

Production-quality additive manufacturing faces growing pains ... Continued from Page 1

100-percent-free of contamination because impurities can alter the properties of the final part. Metal powders can become contaminated during the printing process, storage, transportation, and handling. “AM is turning out to be more complex than people realized,” said Dr. Marcin Bauza, head of ZEISS Additive Manufacturing Process and Control. “There are so many variables that affect the production of a part. The same batch of powder from the same vendor can produce different mechanical properties in different locations of the final product depending on how the powder is processed. For example, the size distribution of individual powder particles influences how the powder is compacted and the density of the build, possibly creating defects visible later in the process. Furthermore, different process parameters will generate different grain and crystallographic structures resulting in very different heat treatment steps required to achieve the desired part properties. For this reason, we cannot follow the standard heat treatment processes as we used to with subtractive methods, because the starting metallographic structure might be very different.” Destructive testing of hundreds of copies of final parts to ensure quality is cost-prohibitive for any type of production and cancels many of AM’s operational advantages. Non-destructive testing is the only viable option, and these methods and standards are still evolving. One of the most precise ways to qualify metal powders is by using non-destructive Computed Tomography (CT) scanning, which can capture details down to a few microns, with high-resolution micro-CT scanners reaching down to 0.05-micron voxel size. CT scanners provide in-depth data on powder microstructure and can measure material composition, particle size, shape distributions, porosity, density, substrate bonding issues, uneven material flow, as well as dimensional accuracy and surface roughness inside and outside of the part. Maintaining the consistency and repeatability of the printing process to ensure build quality over time is another challenge. Process control must be established for printing equipment to ensure that end products are consistent from part to part. It is not uncommon to need to measure more than 100 initial samples before the tools are adjusted sufficiently to enable volume production to

start. For example, a laser powder bed machine can drift from its optimal settings, and because prints happen with elevated temperatures, defective coating can result in voids and non-stable print parameters and can result in differences in grain size and shape.

THE NEED FOR TESTING AM’s ability to affect both outer shape coupled with the ability to determine internal part properties is why AM has such unprecedented capabilities and simultaneously requires unique considerations for qualification. Contrary to processes that use molds or other tooling, AM can process a limitless combination of geometries. While this flexibility is one of its greatest strengths, it also represents a limitless unknown for quality assurance. In CNC machining, the scope of variation is limited to achieving only the outer surface geometry, since the inside volume properties of the billet are already set. Yet, AM must also factor in internal features and composition with outside geometry. Lastly, final parts need to be examined for their material properties to ensure they have not experienced changes in microstructure during processing. This includes examination of crystallographic composition, density, porosity, mechanical strength, tensile strength,

stiffness, internal and external part geometry, surface quality, and finish. “An additional cost that needs to be factored into AM is the need for post-processing,” said Jason Jones, CEO, Hybrid Manufacturing Technology. “3D printing initially found traction as a design and prototype-oriented activity, based largely on polymer parts. Post processing needs were evident but could be done relatively easily and cost-effectively. But since metal is now being used for actual production parts, substantial post-production finishing is almost always a requirement. This takes time and requires inspection.” In summary, the industry is still in the relatively early stages of developing standardized testing methods, protocols, and reference data to qualify AM materials, processes, and parts. MAKING THE BUSINESS CASE Estimating the ROI for production quality AM is a challenge as well. Direct costs include everything from design concept to print recipe development through final part qualification. The difficulty in quantifying some of these elements, combined with the technical challenges, is still too great for most companies today. The two areas where there has been early adoption is the aerospace industry, which has seen clear ROI due to the very high “buy-to-fly ratio” (cost savings derived from the reduced weight of AM-produced parts), and the production of some less critical and less complex parts including indirect parts and machine tools. It is clear that ongoing education and training will be critical in the AM industry. “As a 20-year industry veteran,” said Joe Wilker, advanced multitasking manager, Mazak, “I have witnessed the amount of training and education required in the machining industry as each new machine hit the market. It took multitasking a long time to catch on before companies really believed that it would benefit them. It will likely take many years to take AM to the next level as well.” 

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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ON GOVERNMENT

International exhibition and conference on the next generation of manufacturing technologies

Frankfurt, Germany, November 19 – 22, 2019 formnext.com

The entire world of additive manufacturing

Government relations update BY AMBER THOMAS VICE PRESIDENT, ADVOCACY September was a busy month for Congress after their month-long recess. Below is a snapshot of activity relevant to the manufacturing industry. CONGRESS PASSES STOPGAP SPENDING BILL Congress passed a continuing resolution averting a government shutdown at the end of September and funding federal programs through November 21. After enacting a bipartisan budget deal this summer, House and Senate leaders acknowledged they didn’t have enough time to pass individual appropriations bills before the start of FY2020 on October 1 and would need to pass a temporary measure. MANUFACTURING USA ANNUAL REPORT RELEASED Manufacturing USA released its 2018 annual report last month describing innovations underway at their 14 Manufacturing USA institutes. According to the report, the institutes conducted more than 475 major applied research and development collaboration projects; engaged nearly 2,000 member organizations, an increase of 50 percent; helped more than 200,000 workers, students, and educators through institute workforce efforts; and leveraged $183 million in federal funds to attract $304 million in state and private investment. For a copy of the report, visit manufacturingusa.com. CLEAN WATER REGULATION OVERTURNED The Trump administration announced the repeal of a water regulation that gave the Environmental Protection Agency broader control of the country’s waterways and set limits on pollutants. The 2015 regulation, called the Waters of the United States (WOTUS) rule, clarified the definition of “waters of the United States” under the Clean Water Act and allowed for greater government control of lakes, streams, and wetlands. Republican lawmakers and major industry groups including the National Association of Manufacturers argued that the Obama-era rule represented a federal

Design and software

R&D

overreach into states’ rights to regulate waterways. The administration is crafting a new regulation to replace WOT US w it h a much narrower def inition of the types of streams and wetlands that are subject to Clean Water Act permitting requirements. NEW NATIONAL SECURITY ADVISOR NAMED Robert O’Brien was tapped to become President Trump’s fourth national security advisor after the departure of John Bolton last month. O’Brien, previously a top hostage negotiator, said his focus will be on keeping Americans safe and rebuilding the military. He heads a staff of specialists from the Defense and State departments, as well as other U.S. intelligence agencies. The national security advisor post does not require Senate confirmation. DEFENSE SECRETARY FOCUSED ON CHINA In July, Dr. Mark Esper became the 27th U.S. secretary of defense after the Senate voted overwhelmingly to confirm him by a 90-8 vote. Secretary Esper previously served as the 23rd secretary of the army. He said in a September speech that he wants to make the Pentagon more efficient and use current funding to focus on the threats posed to global security by China’s economic power and Russian aggression. Also last month, trade talks between the United States and China resumed; a continuing resolution funding the government through November was approved; and top Democrats pledged their commitment to the USMCA. Updates on those topics will be in next month’s column.

Metrology

Materials Post-processing Services

Manufacturing solutions

Additive manufacturing surrounds a whole world of processes. Instead of a world tour you only need one ticket – for Formnext!

Where ideas take shape.

Offical event hashtag #formnext

If you have questions on government relations issues, email me at athomas@AMTonline.org

Pre-processing


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EXHIBITIONS

Your exhibitions team’s summer activities update BY PETER R. EELMAN VICE PRESIDENT, EXHIBITIONS & CHIEF EXPERIENCE OFFICER This fall, as students returned to school, I’m sure many were asked to write an essay or present on the topic “What did you do this summer?” In that same spirit, I thought it would be fun to recap what your AMT Exhibitions department did this summer. It’s a tale of exploring what ifs, forming partnerships, being creative, furthering ideas, traveling, and some good old-fashioned fun. DEVELOPING MARKET FOCUS GROUPS AND PARTNERSHIPS We’re springboarding off the success of the job-shop market focus for IMTS 2018 by adding two more market focus groups to IMTS 2020: women in industry and application design engineers. We’re partnering with Women in Manufacturing (WiM) to develop programming and networking sessions on topics unique to women for IMTS 2020. Our partnership kicked off last month with discounted rates for IMTS community members to attend the WiM Summit during Sept. 9-11. We’re working with GIE Media, Inc., to tailor sessions for the application design engineers. We’re also continuing to work with Gardner Business Media on the programming for job-shop owners and managers. DESIGNING THE IMTS 2020 LOOK AND FEEL We met with our general contractor, Global Experience Specialists (GES), in their Hodgkins, Ill., office, to develop ideas to deliver a fresh, high-impact experience for IMTS

2020. Four teams of GES designers presented competing proposals for the overall look and feel of the show, including audio-visual elements, entryways, signage, navigation, and more. These designs build on our marketing theme for IMTS 2020: “Digital Manufacturing. Implemented.” In September 2020, everything from the carpets on the floor to the banners hanging from the ceiling will be on full display—plus a few surprises in McCormick Square!

from “Tech Peeks” to “Profiles in Manufacturing” and even “Outside the Shop,” a series focused on student projects related to manufacturing. I must tell you about my favorite episode: an 11-year-old boy designed and printed his own knee-leg-foot prosthesis because his insurance only pays for one every three years. (How much did you grow from age eight to 11?)

SHOW COMMITTEE INITIATIVES In June, your A MT Show Committee met to discuss the potential of creating a new model for electrical services in line with the Custom Block Package model, which we currently use for drayage, carpet, furniture, and rigging, to provide IMTS exhibitors with cost certainty in advance of the show.

AND WE DID HAVE SOME FUN! On August 30, we celebrated the end of summer with AMT Field Day at a nearby park. Nearly every employee, their families, and some of their dogs attended, including my nine-month-old puppies, T.J. and P.K., which are named for NHL players T.J. Oshie and P.K. Subban. Divided into four teams, we competed in a variety of classic summer-camp games, races, and contests: capturethe-flag, cornhole, kickball, and tug-of-war. I don’t know anything about the Nerf guns and water balloon battle, but we enjoyed some tasty Tex-Mex, friendly competitions, and time bonding with each other. This fall, we’re in full-speed-ahead mode preparing for IMTS 2020! We’re here to help every step of the way!

AMT BOARD MEETING In August, your AMT Board met in Asheville, N.C., to review a variety of topics. Plans for IMTS 2020 and IMTS Network took center stage. Board members were impressed with the quality and topics of the Network’s initial content. (More on the Network to come!) IMTS NETWORK Your Exhibitions Content Team further developed the concept of IMTS Network with programming ranging

For more information, contact peelman@AMTonline.org.


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MARKETING

Branding your company and products BY ANDY KUCHINSKI DIRECTOR, MARKETING AND COMMUNICATIONS You may not give much thought to your company or products’ “brand” or image in the market. You may still be using the same marketing messages about your products that you developed several years ago. But has the market or competitive landscape changed since then? If so, it is probably time to revisit those marketing messages. While it is difficult to change certain marketing messages about your products—after all, specs are specs—what you communicate about the benefits and value of your products, product line, and your company itself are important in creating your image or brand in the market. Additionally, if your company is looking to expand into new geographic or vertical markets, your target audience may not be familiar with you or the range and reputation of your products. If you are competing globally, competing on price alone may become increasingly difficult. When thinking about the messages you want to communicate, you may want to emphasize your commitment to R&D, your innovation in the industry, industry partnerships, company or product awards, company expansion, or engineering excellence, to name a few. Buying decisions in manufacturing are influenced by promises of greater productivity, precision, cost-savings, interoperability, services, and support. You will need to determine what messages about your company and products will resonate with your target audiences most effectively. To do this, you need to know what issues they care about, or their “hot buttons”; understand how your products are relevant to their concerns; and familiarize yourself with your marketplace competitors and what their branding communicates. If you examine your current website or sales sheets, is it absolutely clear what your company’s core strengths are and why customers should buy from you instead of one of your competitors? Do you talk about your company history or their business problems and how you can help them? Do you include customer case histories that showcase how your products helped other companies in the industry? Your audiences will filter your messages through

their own business challenges, recent experiences, and existing levels of knowledge, so you may need to educate your market about your products and how they differ from a competitors’ in terms of value. Several people are frequently involved in the buying decision, and they may have very different issues and concerns. For example, think about how different the day-to-day or strategic issues are for an average operations manager versus a CFO versus a CEO. To begin the process of developing your company and product messages, you need to address the following questions. It is important to include the input of several key company executives, as well as employees from operations and production. And don’t forget members of your sales team—they are on the front lines, dealing with customers every day. All these stakeholders will bring different perspectives to the table. 1. What are the (perceived and actual) strengths and weaknesses of your company and products? 2. What are the (perceived and actual) strengths and weaknesses of your key competitors? 3. Where is the market headed, and where are the market opportunities in the next 24 months? 4. What are the biggest issues and trends dominating the industry right now? 5. How is the industry changing? How are your products positioned and evolving to meet these needs? Once you have addressed these questions, you will gain a much clearer understanding of how to develop your company’s marketing messages to reflect the key benefits of your products, and how these benefits will be important to different target markets and audiences. KEY MESSAGING CONSIDERATIONS Message development goes hand in hand with brand and market position since marketing messages communicate position in the marketplace.

1. Ideally, you should only have three to five core messages. If you have too many messages, it will not be clear to your audience how your products and company are unique. Remember: a company that is all things to everyone is nothing specific to anyone. This applies to products as well. It’s hard to make the argument that you are the best in certain areas if your message communicates that you do a little bit of everything. 2.  M essaging should always precede graphic development, logos, print materials, and website development if possible. Why? To use a simple example: are you a “conservative” or “cutting edge” company? These messages can be communicated and reinforced through your look and feel, images, design, and colors, so you need to determine these messages before this process begins. How do you get started developing new marketing messages to create or change your brand in the market? An external, objective facilitator should ideally lead the meeting. Set aside several hours without cell phones or laptops. Record the discussion; it is easier for the facilitator to listen to the meeting and transcribe it than attempt to take adequate notes while facilitating. Many marketing agencies specialize in this service, so bring in a few to discuss your needs and compare prices and experience. You’ll soon be on your way.

Contact Andy Kuchinski for more marketing tips at akuchinski@AMTonline.org.


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ROAD WARRIOR

A tale of two salesmen, or the grasshopper and the ant BY STEVE LESNEWICH VICE PRESIDENT, MEMBER SERVICES Once upon a time, there were two machine tool salesmen. To protect the innocent, we’ll call them the Ant and the Grasshopper. They each worked for a distributor that had an impressive product line. They both were very, very good salesmen. They always made quota, excelled financially, and were usually the guys awarded as the Top Performers during their respective OEM’s annual meetings. In their territories, they both had several very large customers who bought lots of machines and required a good amount of handholding to keep them happy and to make sure nothing fell through the cracks. Their customers loved them for that. For several years, things were good, and both the Ant and the Grasshopper were very happy salesmen. Then, one year, the climate changed into a deep freeze and everything pretty much stopped, which, as we all know, is very typical in our industry. Sales didn’t just cool off. They were frozen solid. Blame was placed everywhere, as it usually is, but the bottom line was that our industry was in the tank. What’s interesting about this fairytale is how the Grasshopper and the Ant handled this challenge. The Grasshopper was a tall, good-looking, welldressed, easy-going guy, with a good sense of humor. He learned from his customers that all projects were either put on hold or cancelled. They told the Grasshopper not to worry—when things warmed up, they would be sure to give him a call. Since he knew every customer in his territory and had such a great relationship with them, he decided to take their advice. The Grasshopper thought that since business was in the tank, this was the perfect time to go south and work on his golf game. His handicap had been creeping up into the double digits because he had been so busy selling machines. He really needed to get back into the low single digits. His plan was to get out and play golf pretty much every day.

And that’s exactly what he did. After all, his customers would call him when they needed him. The Ant was a short, bald, intense little guy. His wardrobe consisted of a pair of black pants and a white button-down shirt that had his company logo on it. He was always neat, clean, and professional. The Ant’s big customers told him that business had stopped, and all projects were either put on hold or cancelled. If anything changed, they would give him a call. Now, the Ant was not one who could sit around and wait for things to warm up. He looked at this deep freeze as an opportunity. He continued to see his existing customers, and, for the first time, he saw customers who were previously unable to see him when things were really busy. They had time to see him now. So he started sowing some seeds. The Ant knew that he did not know every customer in his territory. So he took the time to find them and meet them and learn everything he could about them. And he sowed some more seeds. He visited his B and C customers, too. Some had gotten much bigger, and some had completely changed their business model. He sowed even more seeds. He took his time and updated his database with everything he learned. Every day, the Ant was excited to get up and get out and learn something new and sow those seeds. He found it amazing how many new potential customers were in his territory—and all of them were looking to stay ahead of the technology curve. Just over a year later, the climate changed again. Things started heating up, and business began to grow. When the Grasshopper heard that his territory was getting warm again, he hopped on a plane and headed north. What he found when he got home surprised him: some of his big customers didn’t wait for his return and started working with the people who called on them when things were slow. They had learned about newer,

better, and more economical ways to be more productive. He was also surprised that some of his big customers didn’t survive the freeze and were now out of business. The Ant, on the other hand, prospered more than he could have ever imagined. Those seeds that he planted with both his existing and new customers germinated and started producing big time. He was one very happy ant! About one year later, the Grasshopper turned in his sales hat and retired. He couldn’t bring back the old glory he used to enjoy with his best customers. He was left out in the cold with a handicap of three. The Ant, on the other hand, had impressed his OEM so much that he was offered his own distributorship in the territory he had developed. In fact, the OEM financed the start-up with little risk to the Ant. As expected, the Ant and his distributorship prospered, and the Ant and his OEM were very happy. THE END. Believe it or not, this fairy tale actually happened. It looks like we might be entering another cold spell. If you’re in sales, the opportunities will be the same. You can think you know every customer and improve your handicap, or you can start finding those new customers and planting seeds that will surely blossom when things warm up again. The choice is yours.

Contact Steve Lesnewich at slesnewich@AMTonline.org


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TECH SPOTLIGHT The Insight That Matters Most to Your Business Whether you are a manufacturer, equipment supplier or finance professional, we provide deep, rich, actionable insights about durable goods manufacturing. • Industrial Reports • Economic Trends • Surveying • Custom Modeling

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BY STEPHEN L AMARCA MANUFACTURING TECHNOLOGY ANALYST On Aug. 20, 2019, the Materials Processing Equipment Technical Advisory Committee (MPETAC) met to discuss the latest matters in export control. The purpose of this committee is to advise the Office of the Assistant Secretary for Export Administration on technical questions that affect the level of export controls applicable to materials processing equipment and related technology. MPETAC covers articles, materials, and suppliers of metalworking equipment, numerically controlled machine tools, and robots. One of the committee’s ongoing goals is to integrate the control definitions between the Export Administration Regulations (EAR) and International Traffic in Arms Regulations (ITAR). The open session consisted entirely of a presentation by AMT’s Chief Knowledge Off icer Patrick McGibbon. He opened his presentation by addressing the manufacturing downstream impact portrayed by the Manufacturers Alliance for Productivity and Innovation (MAPI). “For every dollar of domestic manufacturing value-added destined for manufactured goods for final demand, another $3.60 of value-added is generated elsewhere,” McGibbon said. Upon establishing the value of the manufacturing industry, he further substantiated this claim by showing how machinery manufacturing employment is on the rise alongside the GDP by manufacturing: the United States is right under 21 percent of the World GDP regarding top manufacturing value-added countries. The machine tool market was introduced via AMT’s U.S. Manufacturing Technology Orders (USMTO) survey of vertical machining centers, horizontal machining centers, horizontal numerically controlled lathes, grinding machines, and electrical discharge machines (EDM). McGibbon briefly touched on U.S. imports of machine tools via Trade Data Monitor (TDM). He also discussed current trade issues, focusing on dumping, Section 232, and Section 301, and how they impact the manufacturing industry in the United States. McGibbon then turned his attention to manufacturing sectors such as automotive, aerospace, medical, off-road, agriculture, construction, and energy and power generation. He provided an outlook for each industry sector and mentioned upcoming notable projects. To conclude his presentation, he spoke about transformative technologies such as additive manufacturing (AM) and its rapid rise in the industry. Along with AM, he expounded upon artificial intelligence (AI) as part of the future of advanced automation (robotics) and augmented reality (AR). The ubiquity of AI has grown significantly, from mobile check deposits and email inbox auto-sorting features, to, more recently, mobile assistants such as Apple’s Siri, Samsung’s Bixby, and Google’s Google Assistant. Manufacturing technology is on an upswing, and it is our privilege to embrace the field. For more information on the Bureau of Industry and Security Technical Advisory Committees (TAC) including a schedule of meetings, visit: https://www.bis.doc.gov/.

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SAVE THE DATE AND NEVER MISS AN EVENT APRIL 1-5, 2020 FORT LAUDERDALE MARRIOTT HARBOR B E A C H R E S O R T & S PA , F L O R I D A Now in its 9th year, AMT’s annual MFG Meeting has become a tradition for AMT members to network with their peers and learn from industry thought leaders. For some, the MFG Meeting is an annual tradition; for others, it’s a new opportunity. In 2020, the MFG tradition will include a generation of ambitious new leaders eager to learn about the most critical issues and trends in today’s market--transformational technology, economic predictions, business leadership, and industry best practices. LEARN MORE AT THEMFGMEETING.COM

M AY 1 2 - 1 4 , 2 0 2 0 | S A N TA C L A R A H YAT T S I L I C O N VA L L E Y, C A L I F O R N I A MT360 is a deep dive into the future of manufacturing. A one-of-a-kind education and networking event bringing together the best minds in manufacturing and technology. You’ll learn how innovators are pushing the envelope in manufacturing today—hear visions for the future and make the connections you need to get a competitive edge and move ahead with confidence. LEARN MORE AT MT360CONFERENCE.COM

SEPTEMBER 14-19, 2020 MCCORMICK PLAC E | C HIC AG O, ILLINOIS IMTS 2020 will be the 33rd edition of the Premier Manufacturing Technology show in North America. Industry professionals from all over the world visit IMTS to see and experience more than 15,000 new machine tools, controls, computers, software, components, systems and processes that will solve their manufacturing challenges and improve their efficiency. LEARN MORE AT IMTS.COM

OCTOBER 28-30, 2020 R I T Z C A R LT O N | S T. L O U I S , M I S S O U R I MTFORECAST focuses on the manufacturing economy and the future of the MT market. It gives attendees a look into the industry trends that will drive their business in the next few years. The conference provides a roadmap for attendees, helping them build a better business strategy through customer industry insights, economic forecasting, and deep dives into market data. LEARN MORE AT MTFORECAST.COM

PLAN AHEAD, WE WILL SEE YOU IN 2020! For sponsorship opportunities, contact Bill Herman at bherman@amtonline.org or +1 703-827-5282

S TAY U P - T O - D AT E AT A M T O N L I N E . O R G

Profile for AMT - The Association For Manufacturing Technology

AMT News - October 2019