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Team Finland Future Watch Report: Advanced manufacturing in USA

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Team Finland Future Watch Report: Advanced manufacturing in USA

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Team Finland Future Watch Report: Advanced manufacturing in USA

  1. 1. Advanced manufacturing in USA Lasse Baldauf Elina Lamponen July 2014 1
  2. 2. FINPRO Project objectives  The objective of this project is to study case examples of advanced manufacturing in USA – what type of ecosystems and networks are being formed around Internet of Things, robotics, 3D (additive manufacturing), big data etc. related to the new wave of manufacturing – projects are simultaneously carried out in Germany, Russia, and UK, in addition to the U.S.  Identify potential opportunities for Finnish companies to get involved in the new ecosystems of manufacturing 2
  3. 3. FINPRO Table of Contents Executive Summary 4 Manufacturing trends 5 Public/private initiatives for Advanced Manufacturing 15  America Makes 18  Next Generation Power Electronics Manufacturing 23  Digital Lab for Manufacturing 26  American Lightweight Materials Manufacturing 29  Advanced Composites Manufacturing 32  Industrial Internet Consortium 34 Internet of Things landscape / Platforms 44 Case studies 48 Opportunities for Finns 58 2
  4. 4. FINPRO Executive summary  After the major offshoring face in U.S. manufacturing, reshoring and revitalizing the American manufacturing is gaining increased momentum  Various public/private advanced manufacturing initiatives have been launched  Particularly the major growth in 3d printing seems to be one driver in creating new innovative and creative work environments.- the next chapter will be to grow it into larger scale manufacturing from the small batch scale currently  New platforms are formed in the Internet of Things arena – Finns should be active in building new partnerships in the IoT arena, as well as the Industrial Alliance Consortium  The Cloud Security Alliance should also be interesting for Finnish companies 4
  5. 5. Manufacturing trends 5
  6. 6. FINPRO Manufacturing in the United States  Manufacturing share of the U.S. GDP has shrunk from a one time peak of 28 % to currently at about 14% - over 5 million jobs have been lost in the American manufacturing sector  There have been signs and increased number of cases of some manufacturing returning to the U.S. Also various public/private initiatives have been launched to promote the revival of the manufacturing sector and to promote the importance of keeping a solid manufacturing base in the U.S.  Innovation needs a close proximity to manufacturing in order to thrive 6
  7. 7. FINPRO Apple is assembling it Mac Book Pro in Fort Worth, TX with robotics that are used in automobile manufacturing. 1. Increased reliance on automation and robots  During 2001-11, U.S. manufacturers have cut nearly 5 million manufacturing jobs (about 33%); yet the value of manufactured goods rose 27 percent, and U.S. exports reached their highest level in 20 years  A big advantage machines have is a higher manufacturing turnover, but they also provide companies with a wealth of information about their manufacturing processes so that companies can improve their manufacturing process’ quality, speed, and cost  Robots are also getting smarter and smarter. The latest advances have brought robots that can sense their surroundings and work around obstacles, communicate with people by raising their eyebrows in their monitors, or change their ‘hands’ (the tool on the end of its limb) on their own Foxconn is replacing 1m of their Chinese workers with robots and transferring capital- intensive and high-tech mfg to the US. They invested $30m in a mfg facility in Harrisburg, PA and $10m in R&D to Carnegie Mellon Univ. They also plan to make its own industrial robots. Boeing will start using robots in their manufacturing process to increase the speed of delivery of their aircrafts. “To remain cost competitive, we have been continuously controlling manufacturing overhead to attain better operating leverage and improving efficiency and yield rate through automation using robot arms and industrial engineering methods like production cell management.“ - Hon Hai Precision (Foxconn) financial report 2013 7
  8. 8. FINPRO 2. Reshoring  American and foreign manufacturers are investing billions of dollars across the U.S. again. Rising labor costs in other parts of the world are speeding up the process  Advantages of manufacturing in USA:  recruiting and retaining the best technical talent in the world  supporting and driving innovation  securely protecting customers’ intellectual property  faster time-to-market, reduced transportation costs  Increased quality, energy efficiency  According to a BCG 2012 study, products that are more likely candidates for reshored manufacturing are:  appliances and electrical equipment  lighting systems and small appliances  computers and electronics  transportation products, plastics and rubber  heavy machinery  air conditioning and heating systems  expensive items subject to frequent changes in consumer demand  products where safety concerns are vital (inc. food products) GlobalFoundries is an Abu Dhabi-owned semiconductor manufacturer who built a $8b manufacturing facility in NY Caterpillar moved locomotive production from Canada to Indiana because of lower wages. Workers in Indiana cannot form unions. Lenovo set up a PC manufacturing facility in North Carolina, saying that its in- house manufacturing strategy gives them control over both product development and supply chain operations. 8
  9. 9. FINPRO 3. Rapid prototyping / 3D printing  3D printing helps designers and engineers test ideas and speed the development of products  Reduced product cycle times allows integrating design and adapting to changing customer demands and preferences faster  With industrial 3D printing technologies being able to create an object in a few hours, the traditional manufacturing methods, taking up to two or more days (from prototype to finish product), are gradually becoming obsolete 9
  10. 10. FINPRO The impact of 3D printing on supply chains  Print on demand: no more finished product stacked on shelves or stacked in warehouses  The need for both high volume production facilities and low level assembly workers is eliminated, thereby cutting out at least half of the supply chain in a single blow; instead demand for smaller and standard premises  New efficiencies run the entire supply chain, from the cost of distribution to assembly and carry, all the way to the component itself; reducing scrap, maximizing customization and improving assembly cycle times 10
  11. 11. FINPRO 3. Rapid prototyping: Makerspaces  3D printing is also helping tinkerers working on what they hope will be the next brilliant idea but who don't have the tools in their garage to build it  Makerspaces have become hotbeds of technological innovation and entrepreneurship. They are hands-on work spaces for learning about crafts and new technologies to actually build something  Governments, universities and big corporations are beginning to invest in them  With help of crowdsourcing, these models can then be produced and brought to markets NextFab is a makerspace in Philadelphia with a 21,000- square-foot production space; inc. a boardroom for meetings. Their 350 members pay for access to a million dollars' worth of tools, inc. high-end machines like laser cutters and 3D printers that they could never afford on their own. Members also benefit from the synergy, where accomplished people work in close proximity. 11
  12. 12. FINPRO 4. Smaller orders  There’s at least anecdotal evidence that China’s insistence on high minimum orders pushed some to return to North American factories  3D printing allows making only a few parts or small batches cost effectively; traditional manufacturing usually becomes more cost-effective at 5,000 pieces  At the same time, some firms are adopting the customer-centric approach  Manufacturing could become more consumer-based and responsive; consumers could have greater input in the final product and could request to have it produced to fit their particular specifications Normal uses advanced mobile and 3D-printing technologies to create custom-fit earphones that anyone can order in just minutes without leaving the house. With the free Normal app, customers simply have to take a picture of each ear, holding up a quarter as a size reference, and the 3D-printer does the rest. ”With a little bit of gamification of stylizing and personalization, we will very quickly – in the matter of months or a handful of years - be able to empower everybody to personalize and co-create with their favorite brands. That will become the norm for an enormous market that is untapped today, ’billions of one of a kind’. All of the things that can’t be bought in the store.” - Avi Reichental, CEO, 3D Systems 12
  13. 13. FINPRO 5. Hybrid manufacturing  For 3D printing to be a viable option in manufacturing, it must be applicable across the entire product life cycle, not just prototypes or end- use parts  Metal parts produced through additive manufacturing almost invariably need machining as a follow-up step. Only the subtractive process can achieve the most narrow tolerances and smoothest finishes  Newest technology combines 3D printing with high speed CNC [computer numerical control] milling. The machines print a quarter of an inch of the material and then they mill it, layer by layer  Users may go from print to plastic prototype to finished metal part on one machine without repeated set-ups and without multiple prototyping utilizing costly metals and raw material Optomec 3D printers directly print real end-user parts with materials such as structural metals, conductive metals, and other high value functional materials. The printers are designed to work in harmony within existing production processes, allowing manufacturers to gracefully implement additive manufacturing technology within their factory; their modules can even make repairs to existing pieces or print components, structures and electronics directly onto traditionally manufactured pieces. 13
  14. 14. FINPRO Future of manufacturing Production Line Manufacturing Web Fabrication Cloud Machinery Manually-operated machine tools Computerized numerical control machine tools (CNC) Rapid prototyping / additive manufacturing Labor’s Added Value Skilled machine operators Programmers Designers Materials Metal, wood, rubber Metal, wood, plastic, foam Plastic, low melting- point metals, powdered materials, cells, binders Distribution Wholesalers Retailers, direct to consumers Fabricate-on- demand, fabricate- on-site Recycling / Use of Products None Select components Entire objects 14Source: IFTF
  15. 15. Public/private initiatives for Advanced Manufacturing 15
  16. 16. FINPRO National Network for Manufacturing Innovation (NNMI)  Obama’s proposed network of research institutes that will focus on developing and commercializing manufacturing technologies through public-private partnerships between US industry, universities, and federal government agencies  The network will consist of regional hubs that will accelerate development and adoption of cutting-edge manufacturing technologies for making new, globally competitive products, also to to boost advanced manufacturing, revitalize American manufacturing and encourage companies to invest in the United States  Goal: a network of 45 manufacturing innovation institutes (IMIs) in 10 years  4 institutes announced, calls for 4 more during 2014 16
  17. 17. FINPRO Manufacturing Innovation Institute Model Manufacturing Innovation Institute Applied research Technology development Prototype labs/shops Mfg. software development Education and workforce development National Network of MIIs High tech start up companies Large manufacturing companies Multiple Manufacturing Support Centers Technology needs assessment Technology workshops Mfg. Technology services Small and medium sized manufacturers Community college mfg. programs Universities & national labs Source: AMP Steering Committee 17
  18. 18. America Makes National Additive Manufacturing Innovation Institute 18
  19. 19. FINPRO America Makes Youngstown, OH Led by the National Center for Defense Manufacturing and Machining Network of nearly 100 companies, non-profit organizations, academic institutions and government agencies in all industries; including aerospace, construction, automotive, medical devices, and consumer goods Contacts: Ralph Resnick, Founding Director & Ed Morris, Director  Initially National Additive Manufacturing Innovation Institute (NAMII), the pilot project for the network  Mission: to accelerate the adoption of additive manufacturing (3D printing) technologies in the U.S. manufacturing sector and to increase domestic manufacturing competitiveness by facilitating the development, evaluation, and deployment of efficient and flexible additive manufacturing technologies  Additive manufacturing, often referred to as 3D printing, is a new way of making products and components from a digital model, and will have implications in a wide range of industries including defense, aerospace, automotive, and metals manufacturing  The Department of Defense envisions customizing parts on site for operational systems that would otherwise be expensive to make or ship. The Department of Energy anticipates that additive processes would be able to save more than 50% energy use compared to today’s ‘subtractive’ manufacturing processes. 19
  20. 20. FINPRO America Makes Partners Public partners: Platinum members: 20
  21. 21. FINPRO NAMII Initial Partners 21
  22. 22. FINPRO A regional center of excellence, with a vision for national presence 22
  23. 23. Next Generation Power Electronics Manufacturing Innovation Institute 23
  24. 24. FINPRO Raleigh, NC Led by the Department of Energy Comprises 25 energy sector leaders, includes world’s leading wide band gap semiconductor manufacturers, leading materials providers, and critical end-users Next Generation Power Electronics Manufacturing Innovation Institute  Goal: the next generation of energy-efficient, high- power electronic chips and devices; to revolutionize energy efficiency across a wide range of applications, power electronic devices like motors, consumer electronics, and devices that support our power grid faster, smaller, and more efficient  Mission: to develop advanced manufacturing processes that will enable large-scale production of wide bandgap (WBG) semiconductors, which allow electronic components to be smaller, faster and more efficient than semiconductors made from silicon  WBG semiconductors operate at high temperatures, frequencies and voltages -- all helping to eliminate up to 90 percent of the power losses in electricity conversion compared to current technology  In result power electronics can be smaller because they need fewer semiconductor chips, and the technologies that rely on power electronics -- like electric vehicle chargers, consumer appliances and LEDs -- will perform better, be more efficient and cost less 24
  25. 25. FINPRO Next Generation Power Electronics Manufacturing Innovation Institute Partners  ABB  Arkansas Power Electronics International Inc.  Avogy Inc.  Deere & Company  Delphi Automotive LLP  Delta Products Inc.  DfR Solutions  Hesse Mechatronics Inc. A lighting industry leader that employs more than 5,000 people worldwide Advancing green energy and modernizing the electric power grid  II-VI Incorporated  IQE  Monolith Semiconductor Inc.  RF Micro Devices Inc.  Transphorm Inc.  United Si Carbide Inc.  Vacon Plc. A world leader in the design and sale of electric motors, adjustable speed drives 25
  26. 26. Digital Lab for Manufacturing 26
  27. 27. FINPRO Chicago, IL Led by UI Labs 40 industry partners, 30+ academia, government, and community partners, 500+ supporting companies and organizations Contacts: Dean Bartles, Executive Director & William King, CTO Digital Lab for Manufacturing  Digital Manufacturing and Design Innovation Institute (DMDII)  Goal: to enable interoperability across the supply chain, develop enhanced digital capabilities to design and test new products, and reduce costs in manufacturing processes across multiple industries  Mission: to apply computing technologies to address the manufacturing challenges faced by the Department of Defense and across the country; research ways to make American factories more efficient and improve military readiness  As a result of increasing complexity of manufactured systems, increasing diversity across the supply chain, and the increasing requirement for low-volume production to meet highly customized needs, there is a growing opportunity to expand capabilities in digital manufacturing and design  The integrated design, development, and production of highly complex systems can speed ideas from the lab into commercial production, reduce costs, and shorten production lifecycles 27
  28. 28. FINPRO 3D Systems | ANSYS | Autodesk | Big Kaiser | Boeing | Caron Engineering | Caterpillar | CG Tech | Cincinnati Incorporated | Cray | Dassault Systems Americas Corp. | Deere | DMG / Mori Seiki USA | Dow | Evolved Analytics | General Electric | General Dynamics | Haas | Hexagon Metrology | Honeywell | Hydromat, Inc. | ITI Global, Inc. | ITW | Kennametal INC. | Lockheed Martin | Microsoft | MSC Software | MTConnect Institute | National Instruments | Nimbis | Okuma | Procter & Gamble | PARC | Parlec Inc. | PTC | Rolls-Royce N.A. Holdings Inc. | Siemens PLM Software Inc. | System Insights | UPS Digital Lab for Manufacturing Partners Industry members: American Foundry Society | City of Chicago | Colorado Association for Manufacturing and Technology | Colorado Office of Economic Development and International Trade | Commonwealth of Kentucky | Illinois Department of Commerce & Economic Opportunity | Illinois Institute of Technology | Illinois Science & Technology Coalition | Indiana University | Iowa State University | Missouri University of Science & Technology | American Die Casting Association | Northern Illinois University | Northwestern University | Oregon State University | Purdue University | Rochester Institute of Technology | SCRA | SME | SME Education Foundation | Southern Illinois University | State of Illinois | State of New York | University of Chicago | University of Cincinnati | University of Colorado - Boulder | University of Illinois | 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 Notre Dame | University of Texas - Austin | University of Wisconsin - Madison | Western Illinois University | Association for Manufacturing Technology | Chicago Public Schools | Project Lead the Way | Commonwealth Center for Advanced Manufacturing (CCAM) | National Digital Engineering & Manufacturing Consortium (NDEMC) | PDES, Inc. | Quad Cities Manufacturing Laboratory (QCML) | Smart Manufacturing Leadership Coalition | The Manufacturing Institute | Tooling and Manufacturing Association | State of Colorado | State of Indiana | State of Iowa | State of Missouri | State of Nebraska | State of Oregon | State of Wisconsin | Kentucky Cabinet of Economic Development | Nebraska Department of Economic Development | Wisconsin Economic Development Corporation (WEDC) | World Business Chicago Academic, government & community members: 28
  29. 29. American Lightweight Materials Manufacturing Innovation Institute 29
  30. 30. FINPRO American Lightweight Materials Manufacturing Innovation Institute Main office in Detroit, MI, with significant activities in Columbus, OH Led by Ohio-based manufacturing technology non-profit EWI, University of Michigan, and The Ohio State University 60-member consortium  Goal: to expand the market for and create new consumers of products and systems that utilize new, lightweight, high-performing metals and alloys by removing technological barriers to their manufacture; products include automobiles, wind turbines, medical devices, engines, commercial aircraft, and Department of Defense systems and vehicles  Lightweight and modern metals are utilized in a vast array of commercial products, from automobiles, to machinery and equipment, to marine craft and aircraft. These ultra-light and ultra-strong materials improve the performance, enhance the safety, and boost the energy and fuel efficiency of vehicles and machines  For the Department of Defense, lightweight and modern metals will strengthen the defense capabilities, like enabling the creation of armored vehicles strong enough to withstand a roadside bomb but light enough for helicopter-transport 30
  31. 31. FINPRO American Lightweight Materials Manufacturing Innovation Institute Partners 31
  32. 32. Advanced Composites Manufacturing Innovation Institute 32
  33. 33. FINPRO Advanced Composites Manufacturing Innovation Institute  Competition opened up in February 2014  Led by Department of Energy  Mission: to improve our ability to manufacture advanced fiber-reinforced polymer composites at the production speed, cost and performance needed for widespread use in clean energy products including fuel-efficient and electric vehicles, wind turbines and hydrogen and natural gas storage tanks; to develop low-cost, high-speed, and energy-efficient manufacturing and recycling processes  While advanced composites are used in selective industries such as aircraft, military vehicles, satellites and luxury cars, these materials remain expensive, require large amounts of energy to manufacture and are difficult to recycle  Advanced composites could help manufacturers deliver clean energy products with better performance and lower costs such as lightweight vehicles with record-breaking fuel economy; lighter and longer wind turbines blades; high pressure tanks for natural gas-fueled cars; and lighter, highly energy-efficient industrial equipment 33
  34. 34. Industrial Internet Consortium 34
  35. 35. FINPRO Industrial Internet Consortium  Founded in 2014 by AT&T, Cisco, GE, IBM and Intel; a nonprofit, public-private partnership  Grown to 56 members in three months  An open membership group: the IIC is open to any business, organization or entity with an interest in accelerating the Industrial Internet  Goal: take the lead in establishing interoperability across various industrial environments; to improve integration of the physical and digital worlds, to help drive adoption of Industrial Internet applications Testbeds Innovation to drive new products, processes, services Technology & security Architectural frameworks, interoperability, privacy & security of Big Data Thought leadership Community to advance innovation, best practices and insights 35
  36. 36. FINPRO Industrial Internet Consortium Members  56 members, as of June 17, 2014 36
  37. 37. FINPRO The next revolution: An opportunity for a new wave of Industrialization / Internetization 37
  38. 38. FINPRO Savings and growth opportunities across every industry 38
  39. 39. FINPRO The Industrial Internet: Enabled by the convergence of technology, machines, data and connectivity 39
  40. 40. FINPRO The Industrial Internet: Instrumented, Connected 40
  41. 41. FINPRO Industrial Internet Ecosystem Funding Partners  Academic liaison catalytic to government funding  OSTP may be an influencer  NIST umbrella is key to tech standards  Inclusion of national laboratories as partners may help gain access to new technologies and improve funding National Science Foundation Department of Defense Department of Education Office of Science and Technology Policy National Institutes of Health National Institute of Standards and Technology 41
  42. 42. FINPRO Industrial Internet Ecosystem – Academic Partners 42
  43. 43. FINPRO Industrial Internet Ecosystem – National Agencies 43
  44. 44. IoT Landscape / Platforms 44
  45. 45. FINPRO IoT – New developing platforms  The Internet of everything enables new platforms and partnerships for companies  Firstmark Capital has clustered some examples of the IoT on a landscape map (next page)  On the industrial IoT applications, the drivers seem to be forming in robotics, 3D printing, infrastructure, automotive and healthcare  Connected home is also a very large segment and most of the case examples like Google, Facebook, GE are active in those fields through MA:s  Security segment seems to be quite a small platform considering the issues of data ownership and access to data – that segment importance has to grow  Sensinode in Connectivity platform is the only Finnish company in this IoT landscape illustration 45
  46. 46. FINPRO 46
  47. 47. FINPRO IoT – who owns the data?  As everything moves to the cloud environment, it is becoming more critical of who owns the data and more importantly how it is shared  Although the enterprises own their own data in the cloud, nobody knows exactly how much of the data is shared by cloud service providers  This issue is becoming more critical as the machine to machine interface develops further  One platform is Cloud Security Alliance, https://cloudsecurityalliance.org/, developing standards and protocols for the cloud security  The large corporate membership of CSA does so far not include any Finnish companies 47
  48. 48. Case studies 48
  49. 49. FINPRO  Appliance park in KY: $800m investment to restart U.S. manufacturing lines of fridges, dishwashers, and water heaters  Bringing together design engineers, manufacturing engineers, line workers, marketing and sales to redesign and rethink products and manufacturing processes  By the end of 2014, 75% of GE Appliances revenue expected to come from products made in the U.S.  GE also plans to develop a first of its kind additive manufacturing plant for jet engine parts in Alabama; the 3D printing of entire fuel nozzles from Alabama is scheduled to grow from 1,000 per year in 2015 to more than 40,000 per year by 2020  GE has teamed up with Quirky to roll out innovative new products conceived of and refined by the Quirky's roster of amateur inventors. Quirky is a collaborative online platform where individuals can work on projects together and receive funding for them • Appliances – new manufacturing concepts with Quirky and FirstBuild (see page 50) • Jet engines – major leap in additive manufacturing from small scale to large scale 3D printing 49
  50. 50. FINPRO GE’S ADVANCED MANUFACTURING OPERATIONS 133,00050 PRESENCE STATES U.S. EMPLOYEES 13,491 JOBS SINCE THE BEGINNING OF 2009, GE HAS ANNOUNCED IN THE U.S. $50 MILLION Amount GE has invested in its U.S. equipment and plants in the last ten years $20 MILLION Amount GE will invest over the next two yrs in new tech. GE will bring more new products to market than it has in the past 20 yrs. $17 MILLION Amount in exports in 2010. GE is the 2nd largest U.S. exporter $400 MILLION Amount GE has spent on tuitions for employees pursuing advanced education since 2001 PATENT AWARDS 26,000 GE patents filed from 2000-2010 2000 2010 up 45% $4.9 R&D expenditures in 2010 BILLION IN THE U.S. BY THE NUMBERS (2012) DURHAM, NC GE Aviation Manufacturing 320 EMPLOYEES 2010 2011 NO. OF ENGINES PRODUCED 47% increase because of innovative labor management style 30 24 DAYS DAYS Length of the assembly cycle 50
  51. 51. FINPRO  Collaboration between GE, University of Louisville and Local Motors, a micro manufacturer specializing in open-source design  A new microfactory and open community opened in summer 2014  Global co-creation: open platform for anyone to prototype, iterate and refine existing GE products and to surface new designs  Prototyping and producing a small batch of products at a rapid pace, getting new products to consumers very fast  Students can conduct research while getting practical training on the latest 3D technology  Local Motors was originally created to crowdsource the manufacturing of vehicles  Now focuses on promoting their co-creation web platform and harnessing the power of a community’s ideas through microfactories  Chandler, AZ; Knoxville, TN; Las Vegas; Germany  Plans to open 100 microfactories around the world in the next 10 years • First microfactory • Located at University of Louisville campus • Prototyping, co-creation, customizations, refining production 51
  52. 52. FINPRO • Google has been acquiring, on average, more than one company per week since 2010 • There does not seem to be any one path for the future for Google as the investments range from wearable technology to cars, robotics, home security, tv and mobile phones  Cars: Android Auto  Smart watches: Android Wear Watch  TV: Android TV  Home automation, internet-connected thermostats, smoke detectors, home surveillance: Nest Labs, Dropcam  Nest Labs has a developer program where software developers are invited to come up with ways for their devices to work with other connected devices  Humanoid robots: Boston Dynamics  Mobile gaming/games streaming: Green Throttle Android  Traffic detection software  Airborne wind turbines  High-altitude solar powered drones: Titan Aerospace  Satellites for high-resolution photos and video: Skybox Imaging  Computer vision  Gesture recognition technology 52
  53. 53. FINPRO Project Ara  Customizable smart phones  most customizable mass produced product ever  Made to order, built of different modules  Goal is to put the phone in the hands of the 5 billion people who don’t have a cell phone yet  More affordable since functionalities can be chosen by the end user and repairs can be made by the modules  Antennas, cases will be 3D printed  Phonebloks is looking for partners; Google has a $100k competition for developing new modules 53
  54. 54. FINPRO  Acquired Ascenta, maker of solar-powered drones  Facebook plans to bring Internet to the third-world via drones, satellites, lasers, etc.  Internet.org, a project aimed at bringing affordable Internet access to the 5 billion people without it; a partnership with Samsung, Ericsson, MediaTek, Nokia, Opera and Qualcomm  Virtual reality: Oculus VR  Zuckerberg believes it’s a long-term strategic bet on the future for social networking; virtual reality could become the next most important computing platform  Fitness tracking: ProtoGeo  Artifical intelligence • Facebook has spent $22b and acquired more than 40 companies with its largest acquisition being the purchase of WhatsApp • Most of Facebook's acquisitions have been 'talent acquisitions' and acquired products are often shut-down 54 Facebook
  55. 55. FINPRO  Acquisitions related to logistics  Warehouse robot systems: Kiva Systems  Developing its logistics systems with for instance its own delivery drones  Most likely investing more in the robotics sector  Introduced its own phone in 2014 Amazon invests a lot into logistics systems: • Same day delivery • Eliminating middle-men / warehousing in the logistics chain 55
  56. 56. FINPRO  Acquired PrimeSense that makes 3D sensors  Allows machines to define your location in 3D: applications it TV, retail environment, security  Beats Electronics: also a device-based acquisition  Apple has ventured into new materials and started to produce its own sapphire for its new iPhone 6 glass  The only thing harder than sapphire is diamond; before sapphire was used in semiconductors and barcode sensors • Apple's business philosophy is to acquire small companies that can be easily integrated into existing company projects • Most acquisitions in apps & software 56 Apple
  57. 57. FINPRO  Walmart has a $10m fund to spur innovation and support U.S. manufacturing  The 5-year program will provide funds grants to innovators in the manufacturing sector and seeks to create new processes, ideas, and jobs that support America’s growing manufacturing footprint  Last year Walmart announced that it will buy an additional $50b in American products in an effort to grow U.S. manufacturing and encourage the creation of U.S. jobs  Walmart will host its second U.S. manufacturing session in Denver, CO, in August 2014  Focus will be connecting manufacturers in need of component parts to factories with excess capacity • As the largest company in the world, Walmart can influence the direction of such things as green initiatives and made in USA targets 57
  58. 58. Opportunities for Finns 58
  59. 59. FINPRO Opportunities for Finns?  A wide variety of ecosystems are being formed around new manufacturing and IoT. It would be useful for Finns to be part of their development  The good news seems to be that small batch, customized manufacturing is growing rapidly: should be the niche for Finns also  Of the U.S. National Manufacturing initiatives, the Industrial Internet Consortium (pg 34) seems to be more open for international participation – some others are perhaps more nationalistic by nature.  First Build (pg 51)new micro factories are worth to follow up  Participation in the Cloud Security Alliance (pg 47)  For instance phonebloks.com (pg 53) and Nest Labs (pg 52) are seeking partners 59

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