The National Association of Manufacturers released its Manufacturers’ Outlook Survey for the fourth quarter of 2023, showing that small companies with fewer than 50 employees and medium-sized firms with between 50 and 499 employees, which make up a vast majority of the sector, continued to have historically lower levels of optimism with 65.9% and 63.0% positivity rates in Q4, respectively.

“It’s clear that Congress’ failure to enact pro-growth tax policies to support innovation and investment before year-end is affecting the manufacturing outlook,” said NAM President and CEO Jay Timmons. “Combined with the ongoing regulatory onslaught from the Biden administration, we’re facing economic headwinds that threaten all of the bipartisan wins achieved in recent years.”

Overall, 66.2% of respondents felt either somewhat or very positive about their company’s outlook, edging up slightly from 65.1% in the third quarter. It was the fifth straight reading below the historical average of 74.8%.

The NAM has been urging Congress to swiftly restore three critical manufacturing tax policies: immediate R&D expensing, a pro-growth interest deductibility standard and full expensing (100% accelerated depreciation). These competitive tax policies are critical to empowering manufacturers to grow their operations, hire more workers, increase wages, expand facilities and invest for the future.

Key Survey Findings:

• Eighty-nine percent of respondents said higher tax burdens on manufacturing activities would make it more difficult to expand their workforce, invest in new equipment or expand facilities.
• Workforce challenges also continue to dominate the sector, with more than 71% of manufacturers citing the inability to attract and retain employees as their top primary challenge.
• A weaker domestic economy and sales for manufactured products (63.7%), an unfavorable business climate (61.1%) and rising health care and insurance costs (59.8%) are also impacting manufacturing optimism.

For more information, visit www.nam.org.

NASA Science Heads to Moon on First US Private Robotic Artemis Flight

Carrying NASA scientific instruments as part of its Commercial Lunar Payload Services initiative, Astrobotic’s Peregrine lander launched on United Launch Alliance’s (ULA) Vulcan rocket at 2:18 a.m. EST from Launch Complex 41 at Cape Canaveral Space Force Station in Florida. Peregrine has about a 46-day journey to reach the lunar surface.

Once on the Moon, NASA instruments will study the lunar exosphere, thermal properties of the lunar regolith, hydrogen abundances in the soil at the landing site, and conduct radiation environment monitoring. The five NASA science and research payloads aboard the lander will help the agency better understand planetary processes and evolution, search for evidence of water and other resources, and support long-term, sustainable human exploration.

“The first CLPS launch has sent payloads on their way to the Moon – a giant leap for humanity as we prepare to return to the lunar surface for the first time in over half a century,” said NASA Administrator Bill Nelson. “These high-risk missions will not only conduct new science at the Moon, but they are supporting a growing commercial space economy while showing the strength of American technology and innovation. We have so much science to learn through CLPS missions that will help us better understand the evolution of our solar system and shape the future of human exploration for the Artemis Generation.”  

For this CLPS flight, NASA research includes:

• Laser Retroreflector Array: A collection of approximately half-inch (1.25 cm.) retro-reflectors – a mirror used for measuring distance – mounted to the lander. This mirror reflects laser light from other orbiting and landing spacecrafts to precisely determine the lander’s position.
• Neutron Spectrometer System: This system will search for indicators of water near the lunar surface by detecting the presence of hydrogen-bearing materials at the landing site as well as determining bulk properties of the regolith there.
• Linear Energy Transfer Spectrometer: This radiation sensor will collect information about the lunar radiation environment and any solar events that might occur during the mission. The instrument relies on flight-proven hardware that flew in space on the Orion spacecraft’s inaugural uncrewed flight in 2014.
• Near InfraRed Volatiles Spectrometer System: This system will measure surface hydration and volatiles. It will also detect certain minerals using spectroscopy while mapping surface temperature and changes at the landing site.
• Peregrine Ion-Trap Mass Spectrometer: This instrument will study the thin layer of gases on the Moon’s surface, called the lunar exosphere, and any gases present after descent and landing and throughout the lunar day to understand the release and movement of volatiles. It was previously developed for ESA’s (European Space Agency) Rosetta mission.  

Peregrine is scheduled to land on the Moon on Friday, Feb. 23, and will spend approximately 10 days gathering valuable scientific data studying Earth’s nearest neighbor and helping pave the way for the first woman and first person of color to explore the Moon under Artemis.

For more information, visit https://www.nasa.gov/clps.

Plug Door Itself Could Be Key to Solving 737 9 Mishap

The investigation is under way to explain a “plug” door that blew out shortly after takeoff of a Boeing 737 Max 9 in Oregon on Friday. On Sunday, investigators found what they believe will be a key piece of evidence in that explanation—the plug door itself, discovered in a yard in Portland.

The Federal Aviation Administration has temporarily grounded all Boeing 737 Max 9s until the planes undergo an inspection of their plug doors. This morning, NPR and other media outlets reported three previous flights—Dec. 7 of last year, Jan. 3, and Jan. 4—of “the same plane” experienced an auto pressurization fail light. That reporting quoted NTSB Chairperson Jennifer Homendy initially saying that “the light coming on is ‘very benign’ and it was tested by maintenance crews and reset.” She added, “We don’t know that there was any correlation of the two. It could be entirely separate.”

Alaska Airlines had already restricted the plane from flying over water and requested maintenance crews examine the light, but that request “had not been fulfilled before the plug came off,” according to the reporting.

Again, investigators are placing a good deal of confidence in the examination of the found plug door for answers as to whether this was a result of design, manufacturing, installation, or maintenance of the plug door on these aircrafts.

The incident left the 171 passengers shaken, but unharmed, and they and the six crew members returned safely to the airport in Portland, OR.

Reshoring and Nearshoring Rise Amidst China Trouble

1H2023 reshoring + foreign direct investment (FDI) job announcements continued their record-breaking run. 1H2023 announcements were in line with 2022’s record rate. Q3 announcements have slowed some. We expect to see upwards of 300,000 jobs announced by year-end. EV battery and chip investments and other essential product industries supported by Bidenomics including solar, clean energy, and pharmaceuticals account for most of the announcements.

Several factors have come to light that substantiate the strength of U.S. reshoring and FDI trends. In the first quarter of this year, average spending on U.S. factory construction was more than double the average from the past 17 years. See also US manufacturing boom unlocks ‘once-in-a-lifetime’ opportunity for construction firms. Reshoring Initiative data parallels the magnitude and focus of the construction investments. Independently conducted surveys on companies’ reshoring actions correlate very closely with Reshoring Initiative data on jobs announced over the past 12 years (Exhibit 1).

For more information, visit www.reshorenow.org.

US Cutting Tool Orders Totaled $213 Million in October 2023, Bringing the Year-to-Date Total Up 7.9% From 2022

October 2023 U.S. cutting tool consumption totaled $213 million, according to the U.S. Cutting Tool Institute (USCTI) and AMT – The Association For Manufacturing Technology. This total, as reported by companies participating in the Cutting Tool Market Report collaboration, was up 5.8% from September’s $201.4 million and up 6.1% when compared with the $200.6 million reported for October 2022. With a year-to-date total of $2.06 billion, 2023 is up 7.9% when compared to the same time period in 2022.

These numbers and all data in this report are based on the totals reported by the companies participating in the CTMR program. The totals here represent the majority of the U.S. market for cutting tools.

“U.S. cutting tool orders continued to show a trend of uneven growth over the last quarter, and we expect that narrative to continue through the first half of next year,” remarked Steve Boyer, president of USCTI. “Aerospace and automotive market indicators show sustained growth for 2024 and 2025. Other industrial market segments have softened over the last six months, and we anticipate some decline into the next year. Labor shortages, retention challenges, and an aging workforce will challenge future growth in our markets.”

Eli Lustgarten, president at ESL Consultants, expanded: “Current U.S. cutting tool consumption data remains relatively strong despite the ongoing softness of U.S. manufacturing. Cutting tools are one of the last manufacturing sectors to return to pre-COVID levels. Indications are that conditions will be uncertain for the remainder of 2023 and into 2024. The ISM reported that November manufacturing in the United States contracted for the 13th consecutive month as the U.S. economy slowed under the pressure of higher rates and a consumer slowdown. With the unknown impact of current global turmoil and manufacturing inventories at normal levels or higher, customer orders are being delayed, and companies are focusing on right-sizing inventories. Sustaining current production levels near-term will be difficult. We expect cutting tool orders to remain firm, with 2023 orders of about $2.4 billion to $2.45 billion, likely about 6% to 7% above last year’s level. The first half of 2024 will likely be challenging; a soft economic landing with lower rates will help stabilize and enhance growth next year. The wild card is international turmoil.”

The Cutting Tool Market Report is jointly compiled by AMT and USCTI, two trade associations representing the development, production, and distribution of cutting tool technology and products. It provides a monthly statement on U.S. manufacturers’ consumption of the primary consumable in the manufacturing process – the cutting tool. Analysis of cutting tool consumption is a leading indicator of both upturns and downturns in U.S. manufacturing activity, as it is a true measure of actual production levels.

Historical data for the Cutting Tool Market Report is available dating back to January 2012. This collaboration of AMT and USCTI is the first step in the two associations working together to promote and support U.S.-based manufacturers of cutting tool technology.

The graph shown here includes the 12-month moving average for the durable goods shipments and cutting tool orders. These values are calculated by taking the average of the most recent 12 months and plotting them over time.

Machine Learning Industry to Grow by 30%; Hit Over $200B Value Next Year

The global AI industry continues surging with no signs of slowing down any time soon. In just three years, the entire market more than doubled, reaching $240bn value and more than a quarter-a-billion users worldwide. As the market`s largest and the highest-grossing revenue stream, machine learning had a huge role in this growth.

According to data presented by AltIndex.com, the machine learning industry more than doubled year-over-year and hit a $158bn value in 2023. This figure is expected to grow by 30% and jump over $200bn next year.

The Entire Market to Grow by a CAGR of 18.7% and Hit Over a Half-a-Trillion Value by 2030

Machine learning (ML) and its subset, generative AI, have enabled companies and consumers worldwide to use AI daily to automate tasks, write documents, do market research, or even basic coding, which was hard to imagine just a decade ago.

But with ML quickly picking out trends in big datasets and operating with little to no human interaction, companies and organizations from different sectors continue embracing the technology to optimize their business processes, improve user experience, or tackle fraudulent activities or cyberthreats.

According to a Statista survey, the global machine learning industry has grown by a massive 120% year-over-year and hit a $158.8bn value in 2023, or 65% of the total AI industry value. With businesses and users worldwide embracing the technology, this figure is expected to grow by a further 30% to over $200bn next year. Although Statista expects the annual growth rates to decrease in the following years, the entire market is still expected to grow by a CAGR of 18.7% and hit over half a trillion value by 2030, making 71% of the total AI market size.

In regional comparison, the United States is the largest machine learning market globally, generating $56bn or one-third of the total revenue in 2023. This figure is expected to triple and hit $170bn by 2030. China, the world`s second-largest machine learning market, will see just as impressive growth in this period, with its market size jumping from $19.3bn to $74.6bn. Germany and the United Kingdom follow with 216% and 183% growth rates and market sizes of $21.2bn and $19bn by 2030.

More than 700 million people will Use AI Tools by 2030

Although different companies continue adopting machine learning solutions to improve their efficiency, decision-making, user experience and gain a competitive edge, there are still considerable differences between the markets.

Statista data show manufacturing is by far the largest sector for machine learning solutions, with an 18.8% market share. Finance ranked second with a 15% share as of this year. Healthcare, transportation, and security follow with 12.2%, 10.6% and 10% shares, respectively.

The surging demand for machine learning solutions will help the AI industry reach more users than ever. According to Statista, around 254 million people have used AI tools this year, or 50 million more than a year ago. With roughly 60 million people embracing AI solutions and tools annually, the entire market is set to reach over 700 million users by 2027.

For more information, visit https://altindex.com/.

Vision Engineering Welcomes Kakos as New Distributor Sales Executive

Vision Engineering announced the appointment of Gary Kakos as the new Distributor Sales Executive. With an impressive background in sales and a wealth of experience in sales and customer relations, Kakos is poised to drive Vision Engineering's growth and expansion in the marketplace.

Kakos joins Vision Engineering after a successful tenure at Owl Cyber Defense Solutions, where he served as a Senior Sales Associate. His accomplishments at Owl Cyber Defense Solutions, including revenue growth through channel partners, demonstrate his strategic approach to sales and his ability to forge strong partnerships within the industry.

Prior to his role at Owl Cyber Defense Solutions, Kakos served as a Regional Manager at Victorinox, where he played a key role in collaborating with distributors to target end users. His diverse experience in both cybersecurity and consumer goods positions him as a versatile leader ready to navigate the challenges of the dynamic industrial inspection market.

"We are thrilled to welcome Gary Kakos to Vision Engineering as our new Distributor Sales Executive," said Lee Nagel, Senior Sales Development Manager at Vision Engineering. "Gary's proven track record, industry knowledge, and commitment to excellence align seamlessly with our company values. His leadership will be instrumental in strengthening our partnerships and driving sales initiatives."

In his new role, Kakos will be responsible for working with distribution partners to co-develop sales strategies, educate and train partners on current and new products and drive marketing objectives to increase sales.

"I am honored to join Vision Engineering, a company renowned for its commitment to innovation and excellence in the industrial microscope sector," said Kakos. "I am excited about the opportunity to contribute to the company's continued success and look forward to collaborating with the exceptional team at Vision Engineering."

For more information, visit www.visioneng.com.

Hexagon’s Volume Graphics Software Wins Top Industry Award in Scanning, Metrology Category

Hexagon’s Volume Graphics CT data analysis software was voted the leader in the 3D Scanning or Metrology category at the 3D Printing Industry Awards ceremony held in London in November.

While the focus of this particular annual award is on additive manufacturing, Volume Graphics is used across the automotive, aerospace and defense industries by manufacturers seeking better ways to inspect parts and improve designs—whether 3D printed or produced via other technologies.

Engineers exploring novel materials and manufacturing methods are increasingly turning to industrial CT scanning for highly accurate, nondestructive evaluation of product robustness and performance. Volume Graphics is a leading developer of visualization and analysis software technology that interprets data from CT scans, of almost any material, to detect structural and design deviations that can affect part quality. This in turn informs engineers as they adjust design-engineering strategies to optimize their products.

Celebrating with staff at the global company’s Heidelberg, Germany headquarters, Volume Graphics General Manager Dr. Daniela Handl said, “I want to express my deepest gratitude to those who voted us 3D Scanning or Metrology Company of the Year! What an amazing testament to the work of our incredible team—their commitment to excellence, innovation, and collaboration has been the driving force behind our success. While this award is a momentous achievement, it is also a reminder that our journey is far from over. We stand at the forefront of innovation, and there is so much more to explore, create, and achieve together.”

For more information, visit volumegraphics.com.

Micropsi Industries Names Jackson CEO

Micropsi Industries, whose artificial intelligence (AI)-powered vision system MIRAI enables the automation of tasks too complex or costly to automate with conventional methods, announced the appointment of Gary Jackson as CEO. With more than 30 years of executive leadership experience, Jackson succeeds Micropsi Industries founder Ronnie Vuine, who will remain responsible for the product. 

Prior to joining Micropsi Industries, Jackson served as the CEO of Drishti, an AI-powered video analytics technology company that was recently acquired. He has also led other successful B2B software companies such as Vantive, Ounce Labs, Shunra and Zeekit. Leveraging his comprehensive go-to-market experience, Jackson will focus on expanding the company's international sales and growth while responsible for its overall operational strategy and execution.  

“At a time of severe labor shortages around the world, Micropsi Industries has recognized a longstanding industrial challenge in manufacturing—how to leverage AI and computer vision to automate tasks that are difficult or impossible to automate,” Jackson said. “Our AI system, MIRAI, stands out as a necessary innovation, distinguished by its technological maturity and advanced capabilities. I am committed to working with our team and partners while engaging with customers to make MIRAI a pivotal tool in global manufacturing industries.”  

Under Jackson’s leadership, Micropsi Industries is expected to continue its strong growth trajectory in the United States. The company is already working with leading manufacturers in the automotive and electronics industries. 

Vuine will continue to play a vital role, focusing on product innovation and connecting customers’ needs with the advancement of MIRAI. His expertise has been invaluable in bridging AI technology with practical applications on the factory floor. Jackson's appointment as CEO enables Vuine to dedicate more time to further progress the AI-powered vision system and assist customers in keeping up with the progression of AI advancements. 

“I'm really excited to work with Gary,” Vuine said. “He brings skills into the company that we haven't had access to so far but that we'll urgently need in the phase of growth we're now entering: We need to enable customers to deploy our technology at a scale that really makes a difference to their business. Being able to do so isn't just about product or sales, it's about navigating a customer's very specific value landscape. That's hard to learn quickly, and Gary is really good at it. Also, him doing it will allow me to give much more attention to the product - there are great things coming this year. Exciting AI, but also a lot of operations and maintenance-focused features; the type of thing customers need that start to seriously depend on us for their own value creation.” 

For more information, visit https://www.micropsi-industries.com.

Department of Defense Awards 6K Additive $23.4M Grant; Part of More Than $50M Investment Program for Upcycling Critical Metals for use in Key Defense Applications

6K Additive to double capacity and expand domestic upcycling capability to create, maintain, protect, and restore U.S. industrial base capabilities that are critical to the Department and the American Warfighter.

6K Additive, a division of 6K Inc. and leader in the sustainable production of metals announced that it has initiated a significant investment program that will expand current capacity and add to its growing capabilities for metal processing. The more than $50 million program is being supported by a $23.4 million grant award through the Office of the Assistant Secretary for Industrial Base Policy, through its Manufacturing Capability Expansion and Investment Prioritization (MCEIP) directorate.

The agreement, entered into under Defense Production Act (DPA) Title III authorities, will help 6K Additive increase capabilities to upcycle high-grade metals, including titanium, nickel and refractory metals, used in alloys for aircraft structural components, turbine engine blades, rocket engines, radar systems, and many other critical defense applications. In addition to doubling capacity, the program will enable expansion in scrap sort, segregate, and processing, as well as the production of powder and remelt ingot to increase capability of domestics mill product capacity. The investment will support 6K Additive’s effort in facility renovation, talent acquisition, equipment installation, and engineering that are core to this overall program.

6K’s proprietary upscaling processes leverage abundant domestic sources of metal feedstock to include end of life components, machine shop swarf, and scrap from manufacturing processes such as casting and forging. With MCEIP’s help, 6K expects to expand its capabilities and achieve full rate production at their Burgettstown, PA, facility by the end of 2026.

Frank Roberts, president of 6K Additive, commented, “Our country’s national security relies heavily on materials used across numerous applications and controlling the supply chain from within the borders of the United States is paramount. We are excited to announce this important expansion program which enhances our capabilities to support our defense and commercial customer base. The $23.4 million award from the DoD is a testament to the capabilities of 6K Additive for upcycling the most critical metals and alloys. No other organization has the history, experience, infrastructure or potential 6K Additive has in upcycling materials like titanium, nickel superalloys and refractory metals. We’re honored to be selected for the award and recognize the trust the DoD has placed in our organization.”

For more information, visit www.6Kinc.com.

Hexagon, JSOL Corporation Enter Strategic Partnership to Accelerate EV Powertrain Design with Virtual Prototyping

Hexagon’s Manufacturing Intelligence division and JSOL Corporation have entered a strategic partnership to accelerate the virtual prototyping of electrified powertrains through multi-physics simulation. The collaboration builds on a long-term technical alliance offering global customers accurate and high-productivity virtual prototyping of complex electro-mechanical systems.

The rapid electrification of many industries, including automotive and aerospace transport, requires simulation technologies that enable cross-functional teams to understand the implications of component-level design choices on system-level integrity. Reliable prediction of their durability, efficiency, thermal management or noise and vibration requires a comprehensive simulation solution that can capture multi-physics effects at the component, subsystem, and system-level. The new strategic partnership will enable customers to combine Hexagon's extensive engineering simulation software suite with JSOL Corporation’s JMAG electromagnetic field analysis software to solve a full spectrum of system design problems in the virtual world more quickly, thoroughly, and cost effectively than physical prototyping allows.

Mahesh Kailasam, general manager of design and engineering at Hexagon’s Manufacturing Intelligence division, said: "As the move towards electrification accelerates, new challenges need to be addressed to improve vehicle performance characteristics, from the component to system level. For example, improvements to noise, vibration, and harshness (NVH) performance now require simulation solutions to provide answers at much higher frequency ranges. Our partnership with JSOL solidifies our commitment to serve our existing and new customers in this rapidly evolving market."

Takashi Yamada, chief technology officer at JMAG Business Company, said, “We are excited to work with Hexagon in this electrification journey. This partnership will now allow us to expedite electric vehicle NVH solution development between JMAG and Hexagon’s flagship products MSC Nastran and Adams, along with Romax and Actran." 

To stay ahead in the market, electromagnetic powertrains need to be very efficient and light, using new designs, materials, and manufacturing techniques. Hexagon and JSOL offer digital platforms and virtual environments for engineers to develop advanced electric powertrain technologies.

The partnership will advance several key areas to enhance their product design strategies for electric vehicles and enable more efficient and harmonious product development. A primary focus is to address NVH, enabling engineers to improve product comfort and reduce noise through innovative simulation-based design adjustments. Furthermore, by developing advanced simulations, the new solutions will inform robust and durable designs and make refinements to finalize products within space constraints. Another significant focus for the two companies is helping customers tackle the complexities of modern electro-mechanical machines, controls, and gearboxes with integrated solutions that foster collaboration between engineers from different disciplines.

Powersys, a global provider of design and engineering solutions for electrical vehicles and grid applications, will apply its expertise to help customers accelerate the implementation of these solutions. Olivier Toury, founder and president, Powersys, commented: “We are excited to build on our work with JMAG to offer our customers eNVH and virtual prototyping solutions with Hexagon’s portfolio. Using trusted simulations from Romax, Adams, Actran, or MSC Nastran with JMAG is helping customers make real progress towards zero prototyping for electric vehicles and we are getting busy with U.S. customers already.”

Hexagon provides extensive NVH computer-aided engineering (CAE) support from concept to final system validation and review through its Elements software for system modelling, Romax powertrain simulation, Actran acoustic simulation, Cradle CFD (computational fluid dynamics) air-structure simulation, ODYSEE AI (artificial intelligence) and optimization platform, and physical simulation partnership with VI-GRADE.

For more information, visit hexagon.com, https://www.jmag-international.com and https://www.jsol.co.jp/.

ASQ Names Bhatnagar CEO

ASQ announced that Sid Bhatnagar has been named the Society’s CEO, effective immediately. Bhatnagar has served as Interim CEO since May 2023.

The Society partnered with a globally recognized firm specializing in executive recruiting for non-for-profit and other major industries. The ASQ CEO search included reviewing more than 125 candidates.

“Sid has demonstrated an exceptional ability to navigate complex challenges, drive operational excellence, and foster a culture of innovation and collaboration,” said 2023 ASQ Chair Francisco Santos. “His achievements, particularly during his eight months as Interim CEO, have been a testament to his visionary leadership and deep commitment to ASQ.”

“I am both honored and humbled to accept the role of CEO for ASQ,” Bhatnagar said. “Working alongside our esteemed community of volunteers and members, I am enthusiastic to continue advancing our mission and promoting the importance of excellence through quality."

Bhatnagar had an extensive career across multiple industries as a seasoned executive with a keen focus on driving continuous improvement through the optimization of people, processes, and technology. Bhatnagar’s strategic prowess has allowed him to build and coach cross-functional teams, and establish collaborative relationships with top-level stakeholders, including board of directors, strategic partners and other executives.

Bhatnagar has led the Society for the past eight months as its Interim CEO, and through unwavering resolve and leadership he has helped the Society navigate through this time of transition. He joined the Society in 2020 as Chief Information Officer, and then was promoted to Chief of Staff and Chief Operating Officer.

“Sid’s comprehensive understanding of the complexities of our mission-based Society and his proactive and collaborative approach showcase the mindset and philosophies needed to lead an association and community,” said Santos.

Bhatnagar holds degrees in Management Information Systems and Corporate Communications from the University of Wisconsin-Whitewater. He and his family live in Illinois.

For more information, visit www.asq.org.