The National Network for Manufacturing Innovation ASEE Engineering Deans Public Policy Forum Update Mike Molnar Adv. Mfg National Program Office U.S. Department of Commerce February 10, 2015

Executive Office of the President Interagency Advanced Manufacturing National Program Office (AMNPO) – Housed at DOC / NIST Executive Office of the President NPO composed of members from key federal agencies, industry and academia All staff are federal employees via IPA, Federal Fellow or NIST direct hire/short term authority Guided by agency leaders within National Science and Technology Council Works with agencies to create an integrated interface for advanced manufacturing Works with external stakeholders to establish/strengthen AMP private-public partnerships January 2013 – NSTC subcommittee approved. National Science and Technology Council

Agenda NNMI Basis U.S. Manufacturing Challenge and PCAST NNMI Design NNMI Development NNMI Authorization NNMI Next Steps NPO composed of members from key federal agencies, industry and academia All staff are federal employees via IPA, Federal Fellow or NIST direct hire/short term authority Guided by agency leaders within National Science and Technology Council Works with agencies to create an integrated interface for advanced manufacturing Works with external stakeholders to establish/strengthen AMP private-public partnerships January 2013 – NSTC subcommittee approved. National Science and Technology Council

Misperception - Productivity on Employment Rising Productivity does not create employment losses 1965 – 2000 : US Mfg output rises 6x, stable employment BACKGROUND Gray bars indicate recessions A common misperception is that rising productivity, from automation to IT to advanced processes, naturally drives down manufacturing employment. This chart shows US manufacturing employment, with the gray areas indicating recessions. Although US manufacturing output rose SIX FOLD from 1965 – 2000, manufacturing employment was stable. And with rising productivity comes rising wages and economic security. The period since 2001 shows a different trend – a trend from rising global competitiveness ….

Challenge: US losing leadership in Advanced Products U.S. Trade Balance for Advanced Technology Products + 40 + 20 -20 -40 -60 -80 -100 BACKGROUND US Trade Balance Advanced Technology Products ($ Billion) Starting in the beginning of this decade, for the first time in modern history, we have a negative trade balance in advanced manufactured products. In fact, as shown in the next slide, several technologies and product families are gone for good. These are products which are US strengths – products not offshored chasing lower labor costs. Labor is a small component of these products…n

Products invented here, now made elsewhere - not driven by labor cost BACKGROUND “It’s a story we’re already all too familiar with in the United States: in consumer electronics, in metal castings, in machine tools and others. When we lost consumer electronics manufacturing we gave up a claim on future innovation.” He pointed to the loss of lithium-ion batteries as an example of losing spinoff applications in automobiles and electric grid storage. Here some quotes from Any Grove about his. A new industry needs an effective ecosystem in which technology knowhow accumulates, experience builds on experience, and close relationships develop between supplier and customer. The U.S. lost its lead in batteries 30 years ago when it stopped making consumer-electronics devices. Whoever made batteries then gained the exposure and relationships needed to learn to supply batteries for the more demanding laptop PC market, and after that, for the even more demanding automobile market. U.S. companies didn’t participate in the first phase and consequently weren’t in the running for all that followed. I doubt they will ever catch up.  Andrew Groves, 2010,

PCAST: The independent basis of NNMI President’s Council of Advisors on Science and Technology PCAST 2014 Recommends strong, collaborative network of Manufacturing Innovation Institutes PCAST 2012 Recommends Manufacturing Innovation Institutes to address key market failure PCAST 2011 Recommends Advanced Manufacturing Initiative as national innovation policy

The “Scale-up” Gap or Missing Middle Common terms The “valley of death” The “missing Bell Labs” The “industrial commons” Basic R&D Commercialization

Initial Network Proposed “Sparking this network of innovation across the country, it will create jobs and will keep America leading in manufacturing…" President Obama, March 9, 2012 President asks Congress to authorize initial network of up to 15 Manufacturing Innovation Institutes President directs Agencies to work together on Pilot Institute, while designing Institutes with input from Industry and Academia

Agenda NNMI Design NNMI Basis National Network for Manufacturing Innovation NNMI Development NNMI Authorization NNMI Next Steps NPO composed of members from key federal agencies, industry and academia All staff are federal employees via IPA, Federal Fellow or NIST direct hire/short term authority Guided by agency leaders within National Science and Technology Council Works with agencies to create an integrated interface for advanced manufacturing Works with external stakeholders to establish/strengthen AMP private-public partnerships January 2013 – NSTC subcommittee approved. National Science and Technology Council

Public Engagement on Design Workshops & Request for Information Broad & Diverse Stakeholder Input 1,200 voices on the NNMI Design! All Other 10% Economic Development 6% Research & non-profits 8% Federal State & Local Gov’t 14% Rensselaer Polytechnic Institute Troy New York Cuyahoga Community College Cleveland Ohio University of Colorado Boulder, Colorado National Academies Beckman Center Irvine California U.S. Space and Rocket Center Huntsville, Alabama

Creating the space for Industry & Academia to collaborate The Institute Design Creating the space for Industry & Academia to collaborate White House Report NNMI Framework Design January 2013 Partnership: Industry – Academia – Government Working better, together to create transformational technologies and build new products and industries

Institute Major Activities Tech Integration - Development of innovative methodologies and practices for supply chain integration Applied Research & Demo projects for reducing cost/risk on commercializing new tech. Solving pre-competitive industrial problems Small/Medium Enterprises Engagement with small and medium-sized manufacturing enterprises (SMEs). Institute 2) Institute Mission IMI activities may include Applied research and demonstration projects that reduce the cost and risk of commercializing new technologies or solve industrial problems Education and training at all levels for workforce development Development of innovative methodologies and practices for supply chain integration Engagement with small and medium-sized manufacturing enterprises (SMEs). Education, technical skills and Workforce development Education and training at all levels for workforce development

Agenda NNMI Development NNMI Basis NNMI Design Pilot Institutes by Administrative Actions NNMI Authorization NNMI Next Steps NPO composed of members from key federal agencies, industry and academia All staff are federal employees via IPA, Federal Fellow or NIST direct hire/short term authority Guided by agency leaders within National Science and Technology Council Works with agencies to create an integrated interface for advanced manufacturing Works with external stakeholders to establish/strengthen AMP private-public partnerships January 2013 – NSTC subcommittee approved. National Science and Technology Council

The First Pilot Manufacturing Innovation Institute Additive Manufacturing/3D Printing – Youngstown OH Prime Awardee: National Center for Defense Manufacturing and Machining Initial $30M federal investment matched by $40M industry, state/local Strong leveraging of equipment, existing resources Strong business development Tiered membership-based model, low cost to small business and nonprofits Director of the National Economic Council Gene B. Sperling, Acting Secretary of Commerce Rebecca M. Blank and Under Secretary of Defense Frank Kendall along with Brett B. Lambert, Deputy Assistant Secretary of Defense Manufacturing & Industrial Base Policy, Ohio Senator Sherrod Brown, Congressman Tim Ryan and DOE’s David Danielson, Assistant Secretary for Energy Efficiency and Renewable Energy  Dr. Blanc said, “We’re not interested in building your grandfather’s research institute. The approaches that worked for us in the 20th century aren’t good enough anymore. Instead, we need to build a 21st century model that reflects a strategic, global approach to competitiveness and innovation. This model has to be based on close partnerships between the academic and business world, with support from government as well. This type of collaboration is absolutely essential to ensure that Made in America remains a strong slogan well into the future.” Secretary Kendall commented, “It’s no mystery why Additive manufacturing was chosen as the institute’s focus-area. It’s simply revolutionary. But it is simply not enough to develop revolutionary technology. We need to find a way to insert it into our supply chains. But that is full of challenges. The key is to find a prime contractor-- a Lockheed, Northrop, Honeywell, Boeing– to decide to use additive manufacturing on their production floor or in their supply base. So how can we ensure Primes adopt these advances into their production? How can we ensure innovative small businesses can gain access to expensive capital equipment and collaborate with national experts in this field? And how can we build a new generation of experts in this exciting craft? We may need to look no further than partnerships like the one we celebrate today.” Now at $50M federal, $60M co-invested OVER 100 Participating partners!

2nd Pilot Institute: Next Generation Power Electronics $70M public investment, $70M match Lead: North Carolina State University Hub Location: Research Triangle Park, NC 17 Industry Partners 5 Universities 3 Labs and Other Organizations Mission: Develop advanced manufacturing processes that will enable large-scale production of wide bandgap semiconductors, which allow power electronics components to be smaller, faster and more efficient than silicon. FIRST BULLET: Better power electronics components compared to silicon (Si)-based ones. SECOND BULLET: This leads to dramatic energy savings in industrial processing and consumer appliances, accelerated widespread use of electric vehicles and fuel cells, and help to integrate renewable energy onto the electric grid THIRD BULLET: Manufacturing processes needed to achieve the energy-saving potential of WBG semiconductors Poised to revolutionize the energy efficiency of power control and conversion President Obama North Carolina State University, January 15, 2014

3rd Pilot Institute: Digital Manufacturing & Design Innovation $70M public investment, ~$240M match Lead: UI Labs Hub location: Chicago, Illinois 41 Companies 23 Universities and Labs 9 Other Organizations Mission: Establish a state-of-the-art proving ground that links IT tools, standards, models, sensors, controls, practices and skills, and transition these tools to the U.S. design & manufacturing base for full-scale application 42 Companies: 3D Sys, ANSYS, Autodesk, Big Kaiser Precision Tooling Inc., Boeing, Caron Engineering Inc., Caterpillar, CG Tech, Cincinnati Inc., Colorado Association for Manufacturing & Technology, Cray, Dassault Systems, Deere & Company, Digital Tech Total, DMG Mori, Evolved Analytics LLC, General Dynamics - Ordnance & Tactical Sys, General Electric, Haas Automation, Honeywell, Illinois Tool Works, Imagecom Inc. (Aspire 3D), International TechneGroup Inc. (ITI), Kennametal, Lockheed Martin, Microsoft, MSC Software, NA Die Casting Assoc (NADCA), National Instruments, Nimbis Services Inc., Okuma, Palo Alto Research Center, (PARC), Parlec, Procter & Gamble, Product Dev & Analysis (PDA), PTC, Inc., Rockwell Collins, Rolls-Royce, Siemens, System Insights, The Dow Chemical Company, UPS. 23 Universities and Labs: Colorado University – Boulder, Illinois Institute of Technology, Indiana University, Iowa State University, Missouri University of Science and Technology, Northern Illinois University, Northwestern University, Notre Dame, Oregon State, Purdue University, Rochester Institute of Technology, Southern Illinois University, University of Chicago, University of Illinois at Chicago, University of Illinois at Urbana - Champaign, University of Iowa, University of Louisville, University of Michigan, University of Nebraska- Lincoln, University of Northern Iowa, University of Texas – Austin, University of Wisconsin – Madison, Western Illinois University. 9 Other Organizations: American Foundry Society, City of Chicago – Department of Housing & Economic Opportunity, Colorado OEDIT, Commonwealth of Kentucky, Illinois Department of Commerce & Economic Opportunity, Illinois Science & Technology Coalition, MT Connect Institute, Reshoring Initiative, UI LABS. Over 3:1 Industry Cost Share

4th Pilot Institute: Lightweight and Modern Metals $70M public investment, $70M match Lead: EWI Hub location: Detroit, Michigan Regional location: I-75 Corridor 34 Industry Partners 9 Universities and Labs 17 Other Organizations Mission: Provide the National focus on expanding US competitiveness and innovation , and facilitating the transition of these capabilities and new technologies to the industrial base for full-scale application. 34 Companies: ABS, AEM, ALCOA Technology, Boeing, Comau, Easom Automation, EWI, Fabrisonic, Flash Bainite Steel, GE, Honda North American Services, Huys, Infinium, Inc., Innovative Weld Solutions, ITW, Lockheed Martin, Luvata, Materion, MesoCoat, MTI, NanoSteel Company, Optomec, Phoenix Integration, PowderMet, RealWeld, RTI International Metals, SaFCell, Southwest Research Institute (SWRI), Steel Warehouse Co., ThermoCalc, TIMET, Trumpf, Inc., UTRC, Wolf Robotics 9 Universities and Labs: Colorado School of Mines, Michigan State University, Michigan Tech University, The Ohio State University, University of Kentucky, University of Michigan, University of Notre Dame, University of Tennessee, Wayne State University 17 Other Organizations: American Foundry Society, American Welding Society, ASM International, CAR, Columbus State Community College, Conexus Indiana, DET NORSKE VERITAS™ (DNV), Focus Hope, International Association of Machinists & Aerospace Workers, Ivy Tech, Macomb Community College, MAGNET, Pellissippi State Community College, State of Kentucky, State of Michigan (Michigan Economic Development Council), State of Ohio, Southeast Michigan Workforce Intelligence Network Positioned to expand the US Industrial base for new products and technologies for commercial and USG demands that utilize new, lightweight high-performing metals

Advanced Composites Manufacturing 5th Pilot Institute: Proposals under evaluation Advanced Composites Manufacturing $70M public investment over five years Objective Develop and demonstrate innovative technologies that will, within 10 years, make advanced fiber-reinforced polymer composites at… 50% Lower Cost Using 75% Less Energy And reuse or recycle >95% of the material Application Estimated Current CFC Cost Institute CFC Cost Reduction Target (2018)88 CFC Ultimate Cost Target (2024) CFC Tensile Strength CFC Stiffness Production Volume Cycle Time Vehicles (Body Structures) $26-33/kg >35% <$11/kg by 2025 ~60% 0.85GPa (123ksi) 96GPa (14Msi) 100,000 units/yr <3min cycle time (carbon) <5min cycle time (glass) Wind (Blades) $26/kg >25% $17/kg ~35% 1.903 GPA (276ksi) 134GPa (19.4Msi) 10,000 units/yr (at >60m length blades) Compressed Gas Storage (700 bar – Type IV) $20-25/kg >30% $10-15/kg ~50% 2.55 GPa (370ksi) 135 GPa (20Msi) 500,000 units/yr (carbon fiber)

6th Pilot Institute Funding Opportunity BAA in 2014 Integrated Photonics Manufacturing Innovation Institute More than $100M federal investment over five years Objective Develop and demonstrate innovative technologies for: Ultra high-speed transmission of signals for the internet and telecommunications New high-performance information-processing systems and computing Sensors and imaging enabling dramatic medical advances in diagnostics, treatment, and gene sequencing WH announcement: Launching a Competition for an Integrated Photonics Manufacturing Institute   The Department of Defense is launching a competition to award more than $100 million in federal investment matched by $100 million or more in private investment to the winning consortia to build a new Institute for Manufacturing Innovation (IMI) focused on Integrated Photonics. This Institute will focus on developing an end-to-end photonics ‘ecosystem’ in the U.S., including domestic foundry access, integrated design tools, automated packaging, assembly and test, and workforce development. Each manufacturing innovation institute serves as a regional hub, bridging the gap between applied research and product development by bringing together companies, universities and other academic and training institutions, and Federal agencies to co-invest in key technology areas that encourage investment and production in the U.S. This type of “interactive prototyping factory” provides a unique opportunity for education and training of students and workers at all levels, while providing the shared assets to help companies, most importantly small manufacturers, access the cutting-edge capabilities and equipment to design, test, and pilot new products and manufacturing processes. Photonics, the use of light for applications as diverse as medicine and computing, powers the Internet as we know it today. Integrated Photonics manufacturing, in contrast to today’s technology, has the potential to revolutionize the carrying capacity of internet networks and to transport information at far greater densities, less power and much lower costs than can be attained today. Beyond the Internet and telecommunications, integrated photonics can revolutionize sensor and medical technology – from the development of “needleless” technologies for monitoring diabetic’s blood sugar levels to tiny cameras smaller than pills that can travel within arteries. Integrated Photonics are expected to bring the sequencing of human genomes rapidly down the cost curve, making genome sequencing possible for less than $1,000 as compared to $5,000 today. And in national defense, the potential applications of integrated photonics range from improving battlefield imaging to creating dramatic advances in radar. The Integrated Photonics Manufacturing Institute – with an investment of over $200 million across the public and private sectors - will be the largest manufacturing institute investment to date, reflecting the complexity of this technology, its importance to national security, and its revolutionary potential. See Manufacturing.gov for more information. Photonics: The term “photonics” refers specifically to technologies for generating, transmitting, modulating, filtering, processing, switching, amplifying, attenuating and detecting light. Photonics technologies encompass significant commercial industries and solutions for DoD unique applications. The diverse photonics industry has a number of manufacturing approaches where a public-private investment could rapidly accelerate the technology availability from TRL 4 to TRL 6/7 and enable a sustainable industry for commercial and DoD needs. A photonics IMI would address industrial base issues for photonics materials, such as infrared materials, nonlinear materials, low-dimensional materials, and engineered materials which are critical to our Nation's photonics ecosystem (production, DoD, research, etc....). A Photonics IMI could be structured to allow improvements in the cross-cutting disciplines of design, packaging, reliability and test to be applied across multiple technology topic areas leveraging common manufacturing approaches. Preference could be given to technology topic areas that are in late stage research and development, that may require some design/foundry efforts, but the bulk of the efforts are in the packaging, reliability and test disciplines, increasing the probability that the technology will mature and transition to DoD weapon systems and/or commercial platforms in 3-5 years and enabling the institute to be self-sustaining in the 5-7 year timeframe. Although much research and development on photonics has been done in the U.S., it has been primarily carried out by large corporations developing and using proprietary processes for application-driven designs. Little coordination and cooperation has existed between companies. As a result, U.S.-based photonics research and development is faced with several disadvantages: 1) There is no common or generic component library or fabrication process. There are almost as many technologies as photonics companies. 2) For most potential new applications, the market is too small for payback of investments without cooperative development. Photonic technologies are commonly used in the high speed transmission of signals in telecommunications and high-performance information-processing systems. In addition photonics technologies are used in high-performance information-processing systems and computing. Finally photonic technologies are commonly used in sensors and imagers. Reprinted with permission from Intel Corp This Institute will focus on developing an end-to-end photonics ‘ecosystem’ in the U.S., including domestic foundry access, integrated design tools, automated packaging, assembly and test, and workforce development. All these developments will require cross-cutting disciplines of design, manufacturing, packaging, reliability and testing.

The President’s Vision – 45 Institutes “In my State of the Union Address, I asked Congress to build on a successful pilot program and create 15 manufacturing innovation institutes that connect businesses, universities, and federal agencies to turn communities left behind by global competition into global centers of high-tech jobs.  “Today, I’m asking Congress to build on the bipartisan support for this idea and triple that number to 45 – creating a network of these hubs and guaranteeing that the next revolution in manufacturing is ‘Made in America.’” - July 30, 2013 AP Photo/Susan Walsh

Agenda NNMI Authorization NNMI Basis NNMI Design NNMI Development Revitalize American Manufacturing and Innovation Act NNMI Next Steps NPO composed of members from key federal agencies, industry and academia All staff are federal employees via IPA, Federal Fellow or NIST direct hire/short term authority Guided by agency leaders within National Science and Technology Council Works with agencies to create an integrated interface for advanced manufacturing Works with external stakeholders to establish/strengthen AMP private-public partnerships January 2013 – NSTC subcommittee approved. National Science and Technology Council

Passed Senate with 2015 Appropriations Signed By President Obama NNMI Authorized: Revitalize American Manufacturing & Innovation Act 118 bipartisan RAMI Bill Sponsors Rep. Tom Reed R NY-23 Rep. Joe Kennedy D MA-4 Sen. Sherrod Brown D Ohio Sen. Roy Blunt R Missouri December 11, 2014 – Passed Senate with 2015 Appropriations 18 Cosponsors (10D, 7R, 1I) September 15, 2014 – Passed House 100 Cosponsors (51D, 49R) December 16, 2014 – Signed By President Obama Bipartisan Momentum Supporting NNMI Passage 23

RAMI and NIST Call to Action: RAMI calls upon the U.S. Secretary of Commerce and NIST to establish: The “Network for Manufacturing Innovation Program” (Network function) - to convene and support a network of Institutes New “Centers for Manufacturing Innovation” (Institutes) - using an open topic, open competition process The National Program Office at NIST - to oversee and carry out the program (coordination, network support, and reporting) 24

RAMI Competition Requirements The Secretary Shall… Financial: “…award financial assistance to a person or group of persons to assist the organization in planning, establishing, or supporting a center for manufacturing innovation.” Open Process: “…ensure an open process that will allow for the consideration of all applications relevant to advanced manufacturing regardless of technology area.” Outside Expertise: “…use a competitive, merit review process that includes peer review by a diverse group of individuals with relevant expertise from both the private and public sectors.” Transparency & Accountability: “…implement a conflict of interest policy that ensures public transparency and accountability, and requires full disclosure of any real or potential conflicts of interest on the parts of individuals that participate in the merit selection process.” 25

Agenda NNMI Next Steps NNMI Basis NNMI Design NNMI Development NNMI Authorization NNMI Next Steps FY16 plans NPO composed of members from key federal agencies, industry and academia All staff are federal employees via IPA, Federal Fellow or NIST direct hire/short term authority Guided by agency leaders within National Science and Technology Council Works with agencies to create an integrated interface for advanced manufacturing Works with external stakeholders to establish/strengthen AMP private-public partnerships January 2013 – NSTC subcommittee approved. National Science and Technology Council

Building the Network: Network Status and FY16 Plans FORTHCOMING FY15 Integrated Photonics Smart Mfg. Flex. Hybrid Electronics LM3I Light/Modern Metals Canton, MI DMDII Digital Mfg. Chicago, IL America Makes Additive Mfg. Youngstown, OH Smart Power Electronics Raleigh, NC IACMI Adv. Composites Knoxville, TN Full Network Goal: 45 regional hubs New Institutes Planned for FY16: Open topic competition – addressing “white space” between mission agency topics FY17-26 – central fund proposed for remaining institutes, via open topic process Selected topic competitions supporting Agency mission – using agency authorities and budgets 27

Impacting the Future Manufacturers Inspiration to Innovation to Making

Thank you Advanced Manufacturing National Program Office For questions or comments, please contact the Advanced Manufacturing National Program Office amnpo@nist.gov www.manufacturing.gov 301-975-2830 Unless otherwise labeled, images are courtesy of The White House, the National Institute of Standards and Technology, and Shutterstock