1. American Manufacturing Innovation Network
A National Network for Manufacturing Innovation (NNMI)
Chris Conrardy
Chief Technology Officer
EWI
Gardner Carrick
Senior Director of Strategic Initiatives
The Manufacturing Institute

2. 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.

3. 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 The Association For Manufacturing Technology

4. 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

5. Priorities to Improve Manufacturing Competitiveness
Challenges
Opportunities
Percentage of votes for an option

6. 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?
Extremely important
Percentage of respondents selecting an option
Not at all important
Source: 2011 EWI Member Survey; 350 respondents

7. 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.”

8. US Innovation Gap: Insufficient Emphasis on Maturing New Manufacturing Technology
Structural problem requires a structural solution
Basic Research/
Education
Universities,
NSF Centers,
Federal Labs
High-risk research
Long time horizon
Not focused on shop floor implementation
Manufacturing Technology Innovation
Technical Innovation
Missing Middle
Manufacturing technology innovation, maturation, commercialization, insertion
Medium time horizon
High impact
Best Practices
Industry,
NIST MEP
Incremental improvement
Off the shelf technology
Short time horizon
Time to deployment

9. 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 EWI member survey; 550 respondents

10. 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

11. 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

12. A new American model is needed
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

13. 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

14. Bridging the Innovation Gap
Universities,
NSF Centers,
Federal Labs
High-risk research
Long time horizon
Not focused on shop floor implementation
Technical Innovation
Industry Consortia
Precompetitive technology development
Workforce Training
Application Centers
Mature and commercialize technology
Implement for industrial applications
National network of industry-focused application centers and consortia linked to existing assets
Industry,
NIST MEP
Incremental improvement
Off the shelf technology
Short time horizon
Time to deployment

15. Industry support drives particular entries and exits
Illustration of Center/Consortia Synergies
Industry support drives particular entries and exits
Manufacturing Applications Centers
Industry Consortia

16. Light-weighting Consortium Joining Application Center
View Slide Show to See Progression
Example: From Pre-competitive R&D to Industry Application
Center recognizes potential benefit for commercial clients; licenses IP from university; works to mature technology and expand IP; enages commercialization partners
results
Consortium roadmap identifies joining of high-performance aluminum castings to steel structure as a technology gap
University shows feasibility of magnetic pulse joining
Universities,
NSF Centers,
Federal Labs
Center adds technology to portfolio and makes network aware of the new capability
Technical Innovation
Light-weighting Consortium
Joining Application Center
funding
Industry,
NIST MEP
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
Center performs proprietary applications development for specific companies providing competitive advantage and business growth
Time to deployment

17. 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

18. 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

19. 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

20. Manufacturing Accelerator Network Pilot Concept
February 15, 2012

21. 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

22. 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

23. 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

24. 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

25. 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

26. Facility expansion in progress
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

27. 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

28. 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%

29. 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

30. Gov’t center investment Gov’t consortium investment
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
Resources (millions $)
5:1 multiplier
Gov’t center investment
Gov’t consortium investment
Year

31. Success Metrics Network Effectiveness Industry Engagement
Results
Progress
Process
# of joint projects and technology transfers/transitions
# of network partners and partner events
Outreach to industry, MEP, university labs
Industry Engagement
Results
Progress
Process
Amount of competitive research funding
# of industry members
Growth in programs/cross-sector relevance
Technology Advancement
Results
Progress
Process
Deployed technology adoption and end-user investment
Progress toward commercial use
New IP generation/patents and licenses
Workforce Development
Results
Progress
Process
# of graduates placed in targeted industry sectors
Skill advancement of workers and students
Worker and student program involvement

32. 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

33. 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

34. 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

35. Questions? Chris Conrardy Chief Technology Officer EWI 614.688.5191
Gardner Carrick
Senior Director of Strategic Initiatives
The Manufacturing Institute