In this AMT+ Industry Chat, I sat down with Harry Moser, founder of the Reshoring Initiative and previous president of GF Machining Solutions, and Andrew Osborn, general manager of the cylindrical department at United Grinding (IMTS booth #236802), to discuss the hottest tech trends in the manufacturing supply chain.
The conversation, which can be found in full here at IMTS.com/MFGSupplyChain, sheds light on critical developments like semiconductor manufacturing, reshoring efforts, and a dynamic technological landscape.
Semiconductor Boom The domestic semiconductor industry is revolutionizing, thanks to over $100 billion in investments since 2022 from President Biden’s CHIPS and Science Act. There has been a 150-200% increase in U.S. semiconductor manufacturing construction and the announcement of 70,000 new jobs in the sector.
Osborn highlighted United Grinding’s role in this transformation. Their state-of-the-art Studer S 41 machines, equipped with X-ray systems and Y-axis spindles, streamline the grinding of silicon ingots – a crucial process for semiconductor production. These innovations enable precise alignment and grinding in one operation, positioning the company as a competitive leader in the sector.
He also emphasized the growing use of silicon carbide. This harder version of pure silicon is more difficult to manufacture but is increasingly used in electric vehicles (EVs) thanks to its favorable electrical properties. By 2030, silicon production is set to double while silicon carbide production is set to triple, underscoring the need for advanced grinding technologies to meet this demand.
Reshoring-Up the Chain Reshoring is now at the forefront of U.S. manufacturing strategy. A December 2023 survey indicated that nearly 80% of the automotive industry is bringing production back to the U.S., driven by the growth in semiconductors and alternative vehicle technology. According to the Reshoring Initiative 2022 Data Report, foreign direct investment (FDI) into U.S. manufacturing reached 53%, and over 360,000 jobs were announced, two all-time highs.
As Moser points out, this shift comes with challenges, particularly securing critical rare earth materials, now mostly sourced from China. He stresses the need for North America to expedite its resource extraction processes, which can take up to nine years for new mines to become operational. Streamlining these regulations is essential for enhancing technology supply chains and reducing dependence on foreign sources.
Beyond new technologies, the resurgence in U.S. manufacturing is also fueled by a growing need for equipment like machine tools, pumps, and compressors in the manufacturing ecosystem. The CHIPS Act is a tide lifting all ships, where funding supports these areas and provides financial opportunities for a broad swath of manufacturers.
Keeping A Competitive Edge Moser and Osborn highlight a crucial point about technology distribution in U.S. manufacturing. Despite having the most advanced factories, the U.S. lags behind China in the number of robots and CNC machines per worker by 2-3 times. Chinese labor productivity has increased by 6% per year, while the U.S. is stagnant at only 0.5% per year. The cause? U.S. factories tend to stick with what they know, while China readily adopts new tech.
To maintain competitiveness, both experts advocate for embracing new technologies. Such investments boost productivity, increase wages, and secure the country’s future. They also create first-class working environments that offer in-demand skill sets and careers that ultimately improve worker retention. Quickly deploying the best tools is essential for staying ahead of competitors and fostering the next generation of manufacturing leaders.
Join the Trend at IMTS 2024 A common theme across the chat is staying ahead of the curve–and there’s no better place for that than at IMTS 2024 – The International Manufacturing Technology Show, September 9-14, at McCormick Place, which includes the largest display of manufacturing equipment and software and a dozen conferences including the Supply Chain Forum on Tuesday, September 10. Join industry leaders, including Henry Moser and Andrew Osborn, to discover the innovations shaping manufacturing’s future. Stay current with this dynamic industry, while seeing some of the most advanced tech in action and engaging with the experts using it.
Register now at IMTS.com/Register.
