🚀 Shaping the Future - Issue 53

U.S. manufacturing productivity experienced a significant shift post-2011, with a decline in growth rates that contrasted with the historical trend of faster advancement compared to service sectors.

🧠Executing an Industry 4.0 Roadmap

Last week’s Fireside Chat discussed the concept of Industry 4.0 which refers to the current era of connectivity, advanced analytics, automation, and advanced-manufacturing technology that has been transforming global business for years. Industry 4.0 focuses on improving manufacturing efficiency and productivity by integrating various technological advancements such as Big Data analysis, autonomous robots, simulation, system integration, Internet of Things, cyber security, cloud computing, additive manufacturing, and augmented reality.

Improving efficiency and productivity in manufacturing processes are the primary goals. Companies are now strategizing and appointing leaders to oversee Industry 4.0 implementation, aiming to stay competitive in the market by leveraging these technologies to produce products faster and more efficiently. You can watch the full conversation below.

📚What we’ve read this week

Why has US Manufacturing Stagnated? [Noahopinion]

U.S. manufacturing productivity experienced a significant shift post-2011, with a decline in growth rates that contrasted with the historical trend of faster advancement compared to service sectors. This stagnation was particularly notable in the U.S. and Japan, while other countries like Germany and Korea continued to improve. The initial boost in U.S. manufacturing productivity was largely driven by the computer and electronics sector, benefiting from technological advancements and offshoring to China. However, this era of rapid productivity gains from IT-related advancements may have peaked, presenting challenges for future growth. Policy implications are significant, with a focus on enhancing export competitiveness becoming crucial for the U.S. manufacturing sector.

Generative AI Global Benchmark Study [Lucidworks]

The 2024 Generative AI Global Benchmark Study reveals that nearly half of manufacturers already realize cost benefits from their AI initiatives. Other interesting takeaways from the study include:

• Less than 60% of manufacturers plan to increase AI spending in 2024 compared to 93% in 2023

• 44% of manufacturers are concerned with response accuracy

• Nearly 70% of manufacturers have experimented with LLMs such as Gemini and Chat GPT, with the remainder opting for open-source models such as LLaMa 3 & Mistral.

• Only 1 in 4 companies across all industries have successfully launched AI initiatives in the past 12 months.

Why Most Battery-Makers Struggle to Make Money [Economist]

The cyclic nature of boom-and-bust cycles occurs across various industries and is now evident in battery manufacturing for electric vehicles (EVs). The sector faces challenges despite over $520 billion invested globally in battery production since 2018, driven by anticipated EV demand. Prices for batteries have decreased, yet not enough to spur widespread EV adoption. Companies like SK On and Northvolt are experiencing difficulties, with the former in "emergency management" and the latter delaying new factories. Uncertainty persists due to fast-evolving technology and unreliable forecasts of EV uptake. Potential solutions include investing in cheaper battery technologies and promoting freer trade to lower costs outside China, where EV adoption rates are higher due to lower battery prices.

How to Build EV Motors W/O Rare Earth Elements [IEEE Spectrum]

Currently, most EV motors rely heavily on neodymium iron boron magnets, which are REE-dependent and primarily sourced from China. This reliance poses geopolitical and environmental risks. Efforts are underway globally, particularly in the US and Europe, to develop REE-free motor technologies. These initiatives involve collaborations between government agencies, automakers like General Motors and Tesla, and startups like Niron Magnetics. These entities are exploring alternatives like ferrite magnets, alnico, iron nitride (FeN), and manganese bismuth (MnBi), each with varying trade-offs regarding performance metrics like remanence and coercivity. Researchers at Oak Ridge National Laboratory (ORNL) are driving this research, developing advanced motor designs that minimize or eliminate the need for REEs. Their work includes optimizing motor performance through innovative magnet designs and integrating power electronics within the motor structure to enhance efficiency and reduce weight. New motor designs, such as synchronous motors with electromagnets powered by rotary transformers, are also emerging, offering flexibility in adjusting magnetic fields for efficiency gains across various operating speeds. However, this transition faces challenges, including maintaining performance parity with torque output and demagnetization resistance.

In a First, A Solar Microgrid Will Power an Industrial Plant [Canary Media]

Timet is constructing a new titanium melting facility in Ravenswood, West Virginia, which is set to operate primarily on renewable energy starting next year. The facility, part of Berkshire Hathaway's Titanium Metals Corporation (Timet), will use a solar microgrid developed by BHE Renewables, also a Berkshire Hathaway company. This setup is pioneering as the project demonstrates the capability of microgrids to meet industrial energy demands efficiently and sustainably. The solar microgrid will include a 106 MW solar array and a 50 MW battery energy storage system designed to provide reliable power required for the titanium melting furnaces. David Dugan of Precision Castparts Corp., Timet's parent company, emphasizes that this setup will offer cost-effective power comparable to traditional sources, which is crucial for energy-intensive titanium production. The project represents a substantial investment, with Timet estimating a total investment of over $500 million for the facility. Innovative approaches like Timet's integration of renewable energy and advancements in titanium production methods, such as hydrogen-assisted metallothermic reduction (HAMR), are poised to reshape the industry. These developments could reduce CO2 emissions significantly compared to conventional methods, making titanium more accessible for broader industrial applications beyond its current high-cost niches.

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💬 About Shaping the Future

Shaping the Future is Industry 4.0 Club’s official newsletter. We’ll be experiencing different formats over the coming weeks until we find the one that resonates the most with our members. You can help us improve by sharing feedback and suggestions. The newsletter will land in your inbox every Sunday morning; please subscribe to not miss anything and forward the email to someone you think would benefit from this.

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