Transcript Slide 1
American Manufacturing Innovation Network
A National Network for Manufacturing Innovation (NNMI) Chris Conrardy Chief Technology Officer EWI 614.688.5191
Gardner Carrick Senior Director of Strategic Initiatives The Manufacturing Institute 202.637.3491
Thesis
Innovation is the key driver of competitiveness, wage and job growth, and long term economic growth. The U.S. is lagging behind in innovation in its manufacturing sector relative to high-wage nations such as Germany and Japan.
Individual companies cannot justify the investment required to fully develop many important new technologies or to create the full infrastructure to support advanced manufacturing. Private investment must be complemented by public investment (public-private partnership).
A sustainable, lean, industry-focused innovation model will create an environment for American manufacturing innovation that will advance U.S. manufacturing competitiveness and drive export growth.
Global Competitiveness Challenge: Disturbing Trends
The 2010 trade deficit for all manufactured goods was $565B; and for advanced technology products was $81B
Manufactured Goods U.S. Trade Balance Source: The Manufacturing Mandate, Unleashing a Dynamic Innovation Economy, Aug. 2010 The Association For Manufacturing Technology
Global Competitiveness Challenge: Disturbing Trends
U.S. Manufacturing Employment Thousands
Source: The Competitiveness and Innovative Capacity of the United States, Dept. of Commerce January, 2012
Priorities to Improve Manufacturing Competitiveness
innovation Improve workforce Improve workforce competitiveness competitiveness
Challenges Opportunities
0% 20% 40% Percentage of votes for an option 60%
Manufacturers Recognize the Importance of Innovation to Competitiveness
How important will having world-class manufacturing technologies be to your company's overall competitiveness in the next 5 years?
70% 60%
Extremely important
50% 40% 30% 20% 10% 0%
Not at all important
0 1 2 3 4 5 Source: 2011 EWI Member Survey; 350 respondents
Importance of Innovation Widely Recognized
June 2010 Global Manufacturing Competitiveness Index;
─ Primary driver of competitiveness is “talent-driven innovation”
June 2011 PCAST Report to the President on Ensuring American Leadership in Advanced Manufacturing:
─ “The United States is lagging behind in innovation in its manufacturing sector relative to high wage nations such as Germany and Japan”
October 2011 Economist Intelligence Unit survey of senior executives from U.S. manufacturing firms
─ 90% identify innovation as the key to long-term success
January 2012 Dept. of Commerce report “The Competitiveness and Innovative Capacity of the United States”
─ “Innovation is the key driver of competitiveness, wage and job growth, and long term economic growth.”
US Innovation Gap: Insufficient Emphasis on Maturing New Manufacturing Technology
Structural problem requires a structural solution
Basic Research/ Education Best Practices
Industry, NIST MEP
• •
Incremental improvement Off the shelf technology
•
Short time horizon
Manufacturing Technology Innovation
Missing Middle
•
Manufacturing technology innovation, maturation, commercialization, insertion
•
Medium time horizon
•
High impact Universities, NSF Centers, Federal Labs
• •
High-risk research Long time horizon
•
Not focused on shop floor implementation Time to deployment
An Effective Model Must Overcome Four Principle Barriers
What are the biggest barriers to successful collaborative manufacturing technology development?
1. Funding 2. IP ownership 3. Competition 4. Delivery
Percentage of respondents selecting option Source: Aug. 2010 EWI member survey; 550 respondents
2011 Manufacturing Innovation Summit
October 27, 2011, Columbus OH 25 industry participants
─ ─ Large, medium, and small companies Range of sectors
Confirmed need for an infrastructure to mature manufacturing technology Reviewed innovation models Consensus behind a proposed innovation model to develop, mature and implement advanced manufacturing technology
Necessary Attributes of an Innovation Model
Government not picking favorites, but creating an environment for manufacturing innovation
Elements needed in an innovation infrastructure:
─ ─ ─ Independent organizations with industry-focused mission Agile, self-sustaining, entrepreneurial businesses World-beating advanced manufacturing technology capabilities in strategic, targeted areas ─ ─ ─ ─ Capability to mature and commercialize advanced technologies Multi-sector relevance Accessible to small, medium, and large businesses anywhere Linkage to existing national lab, university, and MEP assets for research, education, and outreach ─ IP framework that facilitates implementation
Many Innovation Models
Fraunhofer Institutes (Germany)
A*STAR (Singapore)
SEMATECH
NCMS
NIST MEPs University Centers None of these models alone is sufficient to bridge the U.S. “Manufacturing Innovation Gap”
EWI Edison Center
DoD MANTECH A new American model is
EPRI Federal laboratories
One-off federal solicitations needed
2 Components of the Manufacturing Accelerator Network
Industry Consortia Application Centers
Sector specific; organized around industry clusters Member based collaborations; financial support to demonstrate relevance Government/industry cost share pre-competitive technology development
Engages universities and national labs to address “grand challenges”
Workforce development through educational institutions IP framework that reduces barriers to collaboration
Manufacturing technology specific; capabilities that are world-beating Facilities and expertise to support all sectors and business sizes 501(c)(3) not-for-profit corporations focused on industry clients Primarily industry funded to implement technology for proprietary applications Modest government funding to build core capabilities IP framework that reduces barriers to implementation
Bridging the Innovation Gap
Industry,
• •
NIST MEP
•
Incremental improvement Off the shelf technology Short time horizon Application
•
Centers Mature and
•
commercialize technology Implement for industrial applications Industry Consortia
•
Precompetitive technology development
•
Workforce Training Universities, NSF Centers,
• •
Federal Labs High-risk research Long time horizon
•
Not focused on shop floor implementation National network of industry-focused application centers and consortia linked to existing assets Time to deployment
Illustration of Center/Consortia Synergies
Industry support drives particular entries and exits Manufacturing Applications Centers Industry Consortia Battery high-speed assembly Flexible electronics Large component fabrication Net-shape manufacturing Next-generation optoelectronics Vehicle lightweighting
X X X X X X
A g il e au to m A at d io d it n iv e m a C n u as fa ti n ct g u ri n g C o a ti n g
X
b ly E le ct ro n ic a ss em F o rm in g
X X
In sp e ct io n J o in in g
X
M ac h in in g P o ly m e r p ro ce s si n g
X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
V IEW S LIDE S HOW TO S EE P ROGRESSION
Example: From Pre-competitive R&D to Industry Application
Center recognizes potential benefit results University shows feasibility of magnetic pulse joining commercialization partners Center adds technology to portfolio and makes network aware of the new capability
Universities, NSF Centers, Federal Labs Light weighting Consortium
funding
Industry, NIST MEP Joining Application
Consortium manages portfolio
Center
• • Issues RFPs Gov’t / industry cost share • Both early and later stage technologies • IP terms require a free licenses for consortium members development for specific companies providing competitive advantage and business growth
Time to deployment
Benefits of the Consortia to Industry
Engage industry leaders to identify and solve common challenges
Leverage industry and government funding to develop pre-competitive technologies
Access wide range of technical organizations for innovative technology development
Advance industry codes and standards
Support workforce training and education programs
Program management to ensure timely and efficient execution
Royalty-free licenses to IP created by the consortium
Benefits of Application Centers to Industry
Practical application of the technologies leveraging proven solutions from a wide range of industry sectors
Access to world-beating manufacturing technology expertise and high-value capital equipment
Robust network to rapidly connect small, medium, and large manufacturers with the best technical assets
Network collaboration to advance cross-cutting technologies, e.g., modeling and design methodologies
Client ownership of IP developed on client projects Leverage Application Centers background IP
Borrows Proven Elements from EWI Experience
Broadest materials joining technical capabilities in the Western Hemisphere; many world-beating manufacturing technologies Serves over 240 member companies at over 2,000 locations Sustainable model; >$25M revenue, >$20M capital; majority industry funded; leverage from competitive government programs Delivers both pre-competitive R&D and client solutions Independent 501(c)3; close relationship with Ohio State University
Many markets
─ Aerospace ─ ─ ─ ─ ─ Alternative energy/battery Automotive/consumer products Defense Heavy equipment/rail Energy/oil and gas/power
Public-private partnerships (PPPs)
─ Additive Manufacturing Consortium ─ Advanced Energy Manufacturing Center ─ ─ ─ ─ Nuclear Fabrication Consortium Navy Joining Center Rail Manufacturing Center Joint industry programs
Manufacturing Accelerator Network Pilot Concept
February 15, 2012
Pilot Objective
Establish a low-risk, subscale network of linked centers and consortia with sufficient critical mass to demonstrate effectiveness
─ ─ ─ Build on existing capabilities Impact multiple sectors and critical technology gaps Leverage existing industry consortia and technology center capabilities with proven industry commitment ─ ─ Establish objective success metrics Deliver measurable results within a year
Sub-Scale Pilot Network
Launching 3 consortia and 4 centers provides critical mass to produce measureable impacts for back-bone industries Manufacturing Applications Centers All address known industry needs with opportunities to leverage ongoing or planned investments Industry Consortia Large component fabrication Net-shape manufacturing Vehicle lightweighting
X X X
A gi le a ut A om dd at iti io ve n m Fo an rm uf in g ac Jo tu in rin in g g
X X X X X X X X X
Vehicle Light-Weighting Consortium
Sectors: automotive, defense, aerospace
Meeting CAFE standards, safety requirements, and customer expectations is a major challenge Requires radical changes to auto structure and drive train designs, materials, and manufacturing methods
Major supply chain impacts expected
Net-Shape Manufacturing Consortium
Sectors: aerospace, defense, medical, energy
Reduce energy usage, carbon intensity, manufacturing operations, and cost
Improve competitiveness and sustainability
Conserve strategic materials
Enable higher performance product designs
Large Component Fabrication Consortium
Sectors: energy, mining equipment, ships, defense
Large component fabrication is often manually intensive and requires large capital investment Domestic suppliers at a disadvantage with low labor cost countries, or heavily subsidized competitors
Opportunity to leapfrog foreign capability through agile, high-productivity fabrication technologies
Agile Automation Center
Automation has not been effectively applied for large structures or small batch sizes Agile automation could enable large-scale equipment to efficiently produce low volume lots
This center will provide world-beating development and education environment for agile automation
Agile processes Agile configurations Facility expansion in progress
Additive Manufacturing Center
Disruptive technology to produce parts in one manufacturing operation: “From Art to Part” Launch products faster, radically improve designs, reduce material waste, make supply chains more agile
This center will mature AM technologies and qualify them for specific applications
Materials Forming Center
Dramatic increase in use of new high-performance materials are making legacy forming technologies obsolete More technically complex approaches required Asia and Europe are investing heavily in technology development while the U.S. is falling behind This center will help American supply chains adopt the latest forming technologies to meet emerging requirements Volvo Strategy Hot Stamp 20%
45%
Materials Joining Center
Increasing performance requirements and new material combinations are pushing limits of joining
Need new methods to join dissimilar materials and predict performance during the design stage
Center investment will create unique capabilities for dissimilar material joining and simulation
ROM Investment Plan
Government investment in initial pilot: ~$25M Build out network (10 centers and 6 consortia) within 4 years Cost to build out and maintain network: ~$50M/year Contracted services grows to become dominant share of funding within 5 years Contracted Services 5:1 multiplier Gov’t center investment Gov’t consortium investment
Year
Success Metrics
Network Effectiveness
Results Progress Process
Industry Engagement
Results Progress Process
Technology Advancement
Results Progress Process
Workforce Development
Results Progress Process # of joint projects and technology transfers/transitions # of network partners and partner events Outreach to industry, MEP, university labs Amount of competitive research funding # of industry members Growth in programs/cross-sector relevance Deployed technology adoption and end-user investment Progress toward commercial use New IP generation/patents and licenses # of graduates placed in targeted industry sectors Skill advancement of workers and students Worker and student program involvement
MI/EWI February 15 Washington Briefing
Objective: To inform policymakers and managers of relevant Federal programs Government Participants:
─ ─ ─ White House Office of Science and Technology Policy DARPA Open Manufacturing program DOE Advanced Manufacturing Office ─ ─ ─ ─ NIST Chief Manufacturing Officer NIST Associate Director for Innovation and Industry Services Office of Secretary of Defense, Manuf. & Industrial Base Policy National Science Foundation
Industry: Babcock & Wilcox, Honda of America, GE Aviation, Manufacturing Institute, EWI, AMT
March 9 Announcement
President Obama announced a proposal for a "National Network for Manufacturing Innovation"
Network of up to 15 "Institutes for Manufacturing Innovation" which would serve as "regional hubs of manufacturing excellence" across the country
Opportunity
A sustainable, lean, industry-focused innovation model will create an environment for American manufacturing innovation that will advance U.S. manufacturing competitiveness and drive export growth
A targeted, strategic investment by the government can quickly create a pilot network that delivers significant, measureable impact for American industry
Questions?
Chris Conrardy Chief Technology Officer EWI 614.688.5191
Gardner Carrick Senior Director of Strategic Initiatives The Manufacturing Institute 202.637.3491