Trade War Casualties: Factories Shifting Out Of China

Trade War Casualties: Factories Shifting Out Of China

Jul 30, 2018

By Kenneth Rapoza, Contributor, Forbes Supply chains starting to shift at a faster pace as companies look to avoid tariffs.  China-based manufacturers were already in the process of moving to lower-cost Southeast Asia. Now that trade tariffs have been enacted on at least $50 billion worth of goods, and another $200 billion likely by summer’s end, they are shifting their supply chain. It’s happening. “With recent tariff battles, companies aren’t as eager to have production in China,” says Nathan Resnick, CEO of startup company Sourcify. The business-to-business manufacturing platform has offices in San Diego and Guangzhou. “We run production runs in India, Bangladesh, Vietnam, Philippines, and Mexico right now. Labor costs are actually more affordable outside of China, so for products like apparel where there is a lot of cut-and-sew labor, most companies are moving out of China anyway,” he says. Sourcify raised $2.5 million through Y Combinator this winter. “I’ve been going back and forth to China for years, and it is getting more expensive. With all these tariffs coming, why not run some of your production runs elsewhere? Companies are saying that the scare of these tariffs has decreased the incentives to manufacture in China.” Sourcify is small, but Kerry Logistics Network, a Hong Kong-listed firm owned by Malaysia’s billionaire Kuok family, is not. The South China Morning Post reported that Kerry shifted part of its production lines from mainland China to its corporate home further south in order to avoid tariffs. “Our clients have been shifting part of their production lines as early as March from China to other Asian countries where they already have manufacturing plants,” William Ma Wing-kai, Kerry’s managing director, was quoted saying in the Hong Kong daily. “This is a reallocation of global production bases,” Ma said. For the last couple of years, China has been moving to a more automated assembly line, pushing lower-cost manufacturing to Vietnam and elsewhere. China is now one of the world’s largest producers of robotics used in manufacturing assembly lines. As the country moves up the value chain, old-school labor like stitch-and-sew apparel manufacturing is leaving the country. Now that the tariffs are in place, with more promised, companies that were...

Taking IIoT to the Edge

Taking IIoT to the Edge

Jul 25, 2018

By Jeff Reinke, Industrial Equipment News (IEN) Edge computing’s ability to supply real-time, plant-floor data will continue to drive it forward. The Industrial Internet of Things has unlocked a number of opportunities that the manufacturing sector can now leverage in streamlining operations, improving quality and cutting costs. However, perhaps the most unique benefit of the IIoT has been the ability to customize the application of these technologies according to the needs and preferences of a specific enterprise – even as the number of solutions falling under the scope of IIoT continues to expand. To discuss one such example, IEN recently sat down with John Fryer, senior director of industry solutions at Stratus, to discuss best practices for leveraging IIoT capabilities with Edge Computing strategies.  Jeff Reinke, IEN Editorial Director: The concept of a connected enterprise has been around for a while, but what do you think were the driving factors that brought the term “Internet of Things” into manufacturing’s lexicon? John Fryer, Senior Director of Industry Solutions, Status: Firstly, we should not forget that “connectivity” and “analytics” have been key components of industrial automation implementations since the first uses of digital controls over 40 years ago. PLC’s have been used to control plant floor activities in many industries, but often in isolated silos. The key elements of the “Internet of Things” are ubiquitous connectivity, almost unlimited computing power and advanced analytics, often using machine learning and artificial intelligence technologies. The advent of the Internet has driven exponential growth in digital connectivity, primarily in human to machine interaction. In recent years, this has been extended to machine-to-machine interaction and the introduction of machine learning to enable automated control of “things”. Perhaps the best examples are self-learning thermostats in homes, which can also be connected to safety systems, such as fire alarms.  Providing plant-wide connectivity with standard technologies, such as Ethernet (or variants) and using the Internet Protocols (IP) enables interconnection of disparate systems, both within the plant, and between plants and Enterprise systems. This makes it easier to deploy additional computing power at the Edge, within a plant, or in the Cloud, and to apply analytic and machine learning technologies to improve a whole range of production and business processes....

Other Voices: Is the time right for reshoring?

Other Voices: Is the time right for reshoring?

Jul 16, 2018

By Harry Moser, Modern Materials Handling New research -as well as incentives like lower corporate tax rates – suggest that it is. It’s hard not to pick up a newspaper or listen to a news report without hearing that U.S. manufacturers are reshoring production, and jobs, back to the U.S. It’s a cause we have been dedicated to at the Reshoring Initiative. There are a number of reasons why we believe that 2018 is the right for companies to re-evaluate their offshoring decisions. Among them are the reduction in U.S. corporate tax rates and regulatory costs and the approximately nine percent decline in the USD from Jan. 2017 to Jan. 2018. Recent academic research provides useful detailed insight into how and why some organizations have reevaluated their offshoring decisions, leading to decisions to reshore. The results are generally consistent with the analyses of data collected by my organization, the Reshoring Initiative, based on a larger population of reshorers. In a recent article entitled “Why in the world did they reshore? Examining small to medium-sized manufacturer decisions,” John V. Gray, Gökçe Esenduran, M. Johnny Rungtusanatham, and Keith Skowronski looked at four small-to-medium-size enterprises, or SMEs, with headquarters and demand in the U.S., that had moved their manufacturing operations from low-cost locations in Asia back to high-cost countries. Two of the companies are located in the Midwest and two are in the West, with product categories ranging from power transmission equipment to measuring and controlling devices, to fabricated metal products to apparel. The authors found that these reshoring decisions are driven by factors beyond changing location-related costs. The Reshoring Initiative and John V. Gray, one of the co-authors and a professor at The Ohio State University’s Fisher College of Business, have discussed the reshoring phenomenon for years. This article is an effort to compare the results from the in-depth academic research of a small number of firms by Gray and his colleagues, and the larger-scale survey data collected by our organization. To differentiate between their work and ours, any numerical results related to the work of the Reshoring Initiative are italicized. Lessons Learned 1. Remedying the Unintended Consequences  SMEs are correcting the unintended consequences of initial offshoring decisions...

Boeing HorizonX Invests in 3D Printing Startup Morf3D

Boeing HorizonX Invests in 3D Printing Startup Morf3D

Jul 5, 2018

Featured in Design-2-Part Magazine Investment furthers Boeing’s commitment to a competitive ecosystem for aerospace-quality 3D-printed parts CHICAGO—Boeing announced its investment in Morf3D, an El Segundo, Calif.-based company specializing in metal-based additive engineering and manufacturing. Morf3D’s technology enables lighter and stronger 3D-printed parts for aerospace applications, Boeing said in a press release. Since Morf3D was established in late 2015, the company has produced 3D-printed titanium and aluminum components for Boeing satellites and helicopters. With this investment, Morf3D will collaborate with Boeing to further develop manufacturing processes and engineering capabilities. “Developing standard additive manufacturing processes for aerospace components benefits both companies and empowers us to fully unleash the value of this transformative technology,” said Kim Smith, vice president and general manager of fabrication for Boeing Commercial Airplanes and Boeing Additive Manufacturing leader, in the release. Morf3D’s metallurgy experts are using a new set of additive manufacturing design rules to advance the technology and accelerate 3D-printing capabilities for commercial use. The company uses state-of-the-art software, combined with engineering expertise, to significantly reduce mass and increase the performance and functionality of manufactured parts. “We are excited to be a distinguished and trusted partner of Boeing’s additive manufacturing supplier base, as we continue to industrialize our processes for the high-rate production of flight-worthy additively manufactured components,” said Ivan Madera, CEO of Morf3D, in the release. “This investment will enable us to increase our engineering staff and expand our technology footprint of EOS M400-4 DMLS systems to better serve the growing demands of our aerospace customers.” “As innovative companies continue to revolutionize technologies and methods, we are proud to invest in the rapidly growing and competitive additive manufacturing landscape,” said Steve Nordlund, vice president of Boeing HorizonX, in the release. Boeing HorizonX Ventures co-led this Series A funding round. The Boeing HorizonX Ventures investment portfolio is made up of companies specializing in technologies for aerospace and manufacturing innovations, including autonomous systems, energy storage, advanced materials, augmented reality systems and software, machine learning, hybrid-electric and hypersonic propulsion, and Internet of Things connectivity. In March 2018, Boeing and Norsk Titanium received the Aviation Week Laureate Award for Commercial Supplier Innovation for qualifying the first additively manufactured structural titanium parts on a commercial airplane. In February 2018,...

Spotlight on advances in additive manufacturing in…

Spotlight on advances in additive manufacturing in…

Jun 26, 2018

“Spotlight on advances in additive manufacturing in aerospace & defense” By Dr Bryony Core and Dr Richard Collins, 3D Printing Progress In IDTechEx Research’s latest report Additive Manufacturing and Lightweight Materials for Aerospace and Defense 2018-2028, the focus is on advanced lightweight materials and the rise of additive manufacturing. The material outlook is for all aerospace and defense applications; aircraft have the highest demand by volume and the applications investigated ranges to structural load-bearing roles, interiors, jet engines, and more. This report tackles the key lightweight materials, targeting those most relevant to the aerospace and defense sector including: composites (FRP, CMC, MMC), lightweight metals (Al, Ti, Mg), and other emerging materials (specifically polymer aerogels and CNT yarns). IDTechEx Research forecasts the key additive manufacturing technologies used by the aerospace and defense sector, with in depth discussion of currently commercialised and emerging printer technologies. The current state of the printer market is analysed, and long-range forecasts from 2018-2023 for accumulated and annual sales of printer technologies and materials including metal powders are evaluated. Key technological capabilities, aerospace and defense manufacturing readiness levels, SWOT analyses and key manufacturers are discussed for each established printer type. As a key early adopter of additive manufacturing, organizations serving the aerospace and defense industry continually make the headlines as they push the boundaries of what is currently possible with additive manufacturing. IDTechEx presents a tech round-up of the latest innovations from GE Additive, Boeing and the US Airforce. Find out more about how additive manufacturing and lightweighting technologies are shaping design and manufacture in aerospace and defense with Additive Manufacturing and Lightweight Materials for Aerospace and Defense 2018-2028. GE Additive builds pipeline of future talent GE Additive is taking steps to ensure that the next generation of engineers is well equipped to capitalize on the opportunities and meet the challenges presented by AM as part of its five-year Education Program investment program. GE donated eight Concept Laser MLAB cusing R DMLM printers to worth $250,000 each to universities around the globe, including Ohio State University and the U.S. Naval Academy. At the time of the program’s launch, Mohammad Ehteshami, VP of GE Additive stated that “Additive Manufacturing is revolutionising the...

Desktop 3D Printer Offers Speed, Precision, Ability to Work in…

Desktop 3D Printer Offers Speed, Precision, Ability to Work in…

Jun 18, 2018

“Desktop 3D Printer Offers Speed, Precision, Ability to Work in Metal” Featured on D2PMagazine.com Airwolf 3D calls its newly released EVO a rugged ‘additive manufacturing center’ that is powered by an automotive-grade microcontroller FOUNTAIN VALLEY, Calif.—Airwolf 3D recently released EVO, its 5th generation 3D printer that is said to be so advanced that Airwolf calls it a desktop “Additive Manufacturing Center,” or AMC. “The EVO is completely new and it’s unlike anything out there,” said Airwolf 3D Co-Founder and CEO Erick Wolf, in a company release. “We took the technology that we perfected with our prosumer line of 3D printers and leveraged it to develop a machine that’s light years beyond anything else on the market. The EVO is faster, stronger, and more accurate than any desktop 3D printer—it delivers a premium 3D manufacturing experience at less than half the cost of machines that offer equivalent performance. Plus, it’s packed with new technology that dramatically changes the way we manufacture, including the ability to work in metals. The EVO far surpasses the capabilities of a traditional desktop 3D printer. It’s a true desktop Additive Manufacturing Center.” The EVO possesses Airwolf 3D’s signature suite of features—auto-leveling, large build size, high-temperature multi-material printing, and compatibility with water-soluble Hydrofill support material—but in an ultra-ruggedized unit that includes cutting-edge features available only from Airwolf 3D. Most notable among these is the industry-first PartSave™. Nicknamed “Zombie Mode,” PartSave solves one of the most frustrating problems with 3D printing. There are few things more disheartening than 3D printing a part for hours, only to have it fail completely if the printer stops because of a power outage or unplugging the machine. With PartSave, once power is restored, the machine resumes where it left off, enabling the part to finish. Another industry-first feature, the company said, is FailSafe™. If you run out of filament or experience a jam, FailSafe™ has you covered. Just place the print head at the height you left off and FailSafe will do the rest, restoring your print and completing the job with time to spare, according to Airwolf. The EVO also ships with a full-color 7–inch Matrix touchscreen display, new Tri-Heat™ Enclosed Build Environment, an oversized...