american manufacturing innovation network chris conrardy chief technology officer ewi 614.688.5191...
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American Manufacturing Innovation Network
Chris ConrardyChief Technology [email protected]
A National Network for Manufacturing Innovation (NNMI)
Gardner CarrickSenior Director of Strategic InitiativesThe Manufacturing [email protected]
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
Source: The Manufacturing Mandate, Unleashing a Dynamic Innovation Economy, Aug. 2010 The Association For Manufacturing Technology
Manufactured Goods U.S. Trade Balance
Global Competitiveness Challenge: Disturbing Trends
Source: The Competitiveness and Innovative Capacity of the United States, Dept. of Commerce January, 2012
ThousandsU.S. Manufacturing Employment
Priorities to Improve Manufacturing Competitiveness
0% 20% 40% 60%
Influence government policy & fundingpriorties
Greater collaboration
Improve workforce competitiveness
Increase technical innovationIncrease technical
innovation
Improve workforce competitiveness
Greater collaboration
Influence government policy & funding priorities
Challenges
Opportunities
Percentage of votes for an option
Manufacturers Recognize the Importance of Innovation to Competitiveness
0%
10%
20%
30%
40%
50%
60%
70%
0 1 2 3 4 5
How important will having world-class manufacturing technologies be to your company's overall competitiveness in the next 5 years?
Extremely important
Not at all important
Source: 2011 EWI Member Survey; 350 respondents
Pe
rce
nta
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of
resp
on
de
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se
lect
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an
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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
Universities,NSF Centers,Federal Labs
• High-risk research• Long time horizon
• Not focused on shop floor
implementation
Industry, NIST MEP• Incremental
improvement• Off the shelf
technology• Short time horizon
Time to deployment
Tech
nic
al I
nn
ova
tio
n
Best Practices
Basic Research/Education
Manufacturing Technology Innovation
Missing Middle• Manufacturing technology
innovation, maturation, commercialization,
insertion• Medium time horizon
• High impact
An Effective Model Must Overcome Four Principle Barriers
Source: Aug. 2010 EWI member survey; 550 respondents
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
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 EWI Edison Center DoD MANTECH EPRI Federal laboratories One-off federal solicitations
None of these models alone is sufficient to bridge the U.S.
“Manufacturing Innovation Gap”
A new American model is needed
Industry Consortia
Application Centers
2 Components of the Manufacturing Accelerator Network
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
Industry Consortia
• Precompetitive technology
development• Workforce
Training
Universities,NSF Centers,Federal Labs
• High-risk research
• Long time horizon
• Not focused on shop floor
implementation
Bridging the Innovation Gap
Application Centers
• Mature and commercialize
technology• Implement for
industrial applications
Industry, NIST MEP
• Incremental improvement
• Off the shelf technology
• Short time horizon
Time to deployment
Tech
nic
al I
nn
ova
tio
n
National network of industry-focused application centers and consortia linked
to existing assets
Agi
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utom
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dditi
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anuf
actu
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Cas
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Coa
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Ele
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asse
mbl
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Form
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Insp
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nJo
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gM
achi
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Pol
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pro
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Battery high-speed assembly X X X X X X
Flexible electronics X X X X X
Large component fabrication X X X X X X X X
Net-shape manufacturing X X X X X X X X X
Next-generation optoelectronics X X X X X
Vehicle lightweighting X X X X X X X X X
Illustration of Center/Consortia Synergies
Manufacturing Applications Centers
Industry Consortia
Industry support drives particular entries and exits
Light-weighting
Consortium
Universities,NSF Centers,Federal Labs
Example: From Pre-competitive R&D to Industry Application
Joining Application
Center
Industry, NIST MEP
Time to deployment
Tech
nic
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nn
ova
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Consortium roadmap identifies joining of high-performance aluminum castings to steel structure as a technology gap
Consortium manages portfolio• Issues RFPs • Gov’t / industry cost share• Both early and later stage technologies• IP terms require a free licenses for consortium
members
University shows feasibility of magnetic pulse joining
funding
resultsCenter recognizes potential benefit for commercial clients; licenses IP from university; works to mature technology and expand IP; enages commercialization partnersCenter adds technology to
portfolio and makes network aware of the new capability
Center performs proprietary applications development for specific companies providing competitive advantage and business growth
VIEW SLIDE SHOW TO SEE PROGRESSION
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
February 15, 2012
Manufacturing Accelerator Network Pilot Concept
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
Agile au
tom
ation
Additive
manufa
cturin
g
Forming
Joinin
g
Large component fabrication X X X X
Net-shape manufacturing X X X X
Vehicle lightweighting X X X X
Sub-Scale Pilot Network
Manufacturing Applications Centers
Industry Consortia
Launching 3 consortia and 4 centers provides critical mass to produce measureable impacts for back-bone industries
All address known industry needs with opportunities to leverage
ongoing or planned investments
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 StrategyHot 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
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
ROM Investment PlanR
esou
rces
(m
illio
ns $
)
Year
Gov’t consortium investment
Contracted Services
5:1 multiplier
Gov’t center investment
Success Metrics
Network Effectiveness
Industry Engagement
Technology Advancement
Workforce Development
Results ProgressProcess
# of joint projects and technology transfers/transitions# of network partners and partner events
Outreach to industry, MEP, university labs
Results ProgressProcess
Amount of competitive research funding# of industry members
Growth in programs/cross-sector relevance
Results ProgressProcess
Deployed technology adoption and end-user investmentProgress toward commercial use
New IP generation/patents and licenses
Results ProgressProcess
# of graduates placed in targeted industry sectorsSkill 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 ConrardyChief Technology [email protected]
Gardner CarrickSenior Director of Strategic InitiativesThe Manufacturing [email protected]