AMT - The Association For Manufacturing Technology7901 Westpark Dr iveMcLean, Virg in ia 22102703-893-2900www.AMTonl ine.org

THEMANUFACTURING MA N DAT E I n n o v a t i o n E c o n o m y

WH Y A MA N U FAC T U R I N G MA N DAT E?

How does American manufacturing move forward in the next decade? AMT believes cooperation and

innovation are the keys. How do we achieve this vision? By developing a clear path that AMT calls

the Manufacturing Mandate. AMT is calling for a federal policy of collaboration between government,

industry and academia. The federal policy would incentivize innovation and R&D in new products and

manufacturing technologies; assure the availability of capital; increase global competitiveness; minimize

structural cost burdens; and enhance and build a better educated and trained “smartforce.”

A solid recovery has been slow to take hold, and that has been especially true in the manufacturing sector

where credit remains tight and uncertainty over the future has prevented companies from retooling,

diversifying, and investing in R&D. AMT believes its national manufacturing mandate is necessary to

cement this recovery and create a strong foundation for sustained economic growth.

It is clear the credit and confidence obstacles are shifting attention away from where it should be: on

innovation and creating the highly skil led, well-paid jobs that naturally follow. The United States

currently lags behind our trading partners in new fields we should be dominating. That is because we

operate in a business and regulatory environment that thwarts our progress. If we don’t redirect our

government policy and resources to focus on innovation and R&D, there will be more missed opportunities

for American technological leadership and our citizens will ultimately suffer.

It is possible for the government, industry, and our academic communities to work together, utilizing

an infrastructure already in place, to revitalize our manufacturing sector and promote real economic

growth. AMT is poised to work with the federal government to implement a national manufacturing

s t rategy – a Manufacturing Mandate that will establish the United States as the worldwide leader

in next-generation manufacturing technologies and the world-class products and services they provide.

Douglas K. Woods

President

AMT - The Association For Manufacturing Technology

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TH E IM P O R TA N C E O F MA N U FAC T U R I N GTE C H N O LO G Y TO T H E OV E R A L L EC O N O M Y

MANUFACTURING

TECHNOLOGY

OEMs

Electronics

U.S. Economy

Medical

Global Market

Transportation

Energy

DefenseAppliances

Suppliers

ConstructionJob Shops

AMT members, whi le smal l in number, are cr uc ia l to prov id ing manufactur ing tec hnology equipment and so lu t ions to all other industrial sectors of the economy.

FO C U S O N IN N OVAT I O N I N MA N U FAC T U R I N G

· I n n o va t i o n d r i ve s e c o n o m i c g row t h .

· I n n o va t i o n i s d r i ve n by p ro d u c t i ve

e f f i c i en cy and adapt i ve e f f i c i en cy.

· D e ve l o p i n g t h e s e e f f i c i e n c i e s

r e q u i r e s c o o p e ra t i o n b e t we e n

gover nment , bus ines s and academia .

· S t i m u l a t i n g s m a r t p u b l i c / p r i va t e

p a r t n e r s h i p i s t h e b e s t wa y t o

implement innovation in manufacturing.

· I n n o va t i o n i n m a n u f a c t u r i n g i s t h e

p a t h t o c h a n ge a n d p ro g r e s s

r a t h e r t h a n s t a g n a t i o n .

F o r A m e r i c a t o s u c c e s s f u l l y c o m p e t e i n

t h e g l o b a l m a r k e t p l a c e , w e n e e d a

c o h e r e n t n a t i o n a l m a n u f a c t u r i n g s t r a t e gy

t h a t e m p h a s i z e s i n n o v a t i o n .

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TH E OF F S H O R I N G D I L E M M A

T h e l a c k o f a c o h e r e n t , c o o r d i n a t e d n a t i o n a l p o l i c y t h a t

p r o m o t e s i n n o v a t i o n i n m a n u f a c t u r i n g l e d t o e x c e s s i v e

o f f s h o r i n g .

A l l o t h e r l e a d i n g e c o n o m i e s a r e i m p l e m e n t i n g s t r a t e g i e s t o

a t t r a c t m a n u f a c t u r i n g , e s p e c i a l l y h i g h - t e c h m a n u f a c t u r i n g .

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TH E U.S. FA L L S BE H I N D

-600

-500

-400

-300

-200

-100

0

100

1988 1992 1996 2000 2004 2008

All ManufacturedProducts

Advanced Technology Products

$ billions

Source: Census Bureau, Foreign Trade Division

Since 2002, the United States has run a trade deficit in advanced technology

products. If this trend continues, the United States will cease to be competitive

in many manufacturing technology markets.

U.S. TRADE BALANCE FOR HIGH-TECH AND ALL MANUFACTURING PRODUCTS

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W H A T I S R E Q U I R E D ?

W e b e l i e v e t h a t w h a t i s r e q u i r e d t o r e b u i l d a n d

r e v i t a l i z e A m e r i c a ’ s m a n u f a c t u r i n g s e c t o r i s a n a t i o n a l

p o l i c y t h a t s u p p o r t s a n d e n c o u ra ge s i n n o va t i o n .

I n s h o r t , a M a n u f a c t u r i n g M a n d a t e . . .

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NAT I O N A L PO L I C Y

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The U.S. government, recognizing the national importance of our manufacturing sector to a vital, sustainable economy and a strong defense industrial base, will implement policies that:

I n c e n t i v i z e i n n o v a t i o n a n d R & D i n n e w p r o d u c t s a n d m a n u f a c t u r i n g t e c h n o l o g i e s

A s s u r e a v a i l a b i l i t y o f c a p i t a l

I n c r e a s e g l o b a l c o m p e t i t i v e n e s s

M i n i m i z e s t r u c t u r a l c o s t b u r d e n s

Enhance collaboration between government , a c a d e m i a , a n d i n d u s t r y

B u i l d a b e t t e r e d u c a t e d a n d t r a i n e d w o r k f o r c e

M A N U F A C T U R I N G M A N D A T E

C R E AT E I N T E R A G E N C Y M A N U F AC T U R I N G S T R U C T U R E

Liaison to the President

Cabinet-levelOffi cials

Science, Technology, Manufacturingrelated Offi cesand Agencies, including (but not limited to):

Senior Advisor to the President for

Manufacturing Policy

EnergyDefense

Education Commerce

NISTARPA-E

NSFOSTP DARPA

Manufacturing& Services

SBAOVAE

TransportationLabor

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A c o n s i s t e n t c o h e s i ve a p p ro a c h t o m a n a g i n g t h e g o ve r n m e n t ’ s manufactur ing tec hnology in i t iat ives i s lack ing. We need a central manufactur ing pol icy s t r uc ture wi th in the Execut ive Branc h to develop p o l i c y, fo c u s r e s e a r c h , a n d c o o r d i n a t e i m p l e m e n t a t i o n o f t h em a n u f a c t u r i n g m a n d a t e s t r a t e g i e s .

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Senior Advisor to the President for

Manufacturing Policy

EnergyDefeff nse

Education Commerce

NISTARPA-PP E

NSFOSTP DARPAPP

Manufacff turing& Services

SBAOVAE

TransportationLabor

A S S E M B L I N G T H E P I E C E S

MANUFACTURING MANUFACTURING MANDATEMANDATE

INTERAGENCYINTERAGENCYMANUFACTURINGMANUFACTURING

STRUCTURESTRUCTURE

EXISTING EXISTING MANUFACTURING MANUFACTURING

STRUCTURESTRUCTURE

Many re sou r ce s a re a l r eady i n p la ce, bu i l d i ng a f u n c t i o n a l m o d e l w i l l r e q u i r e c o o r d i n a t i o n a n d c o o p e r a t i o n .

UT I L I Z E EX I S T I N G IN F R A S T R U C T U R E

MEP Locations

Most Dense

Least Dense

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Color gradients represent densit ies of manufacturing innovation clusters - manufacturing companies, universit ies, community co l l eges , vo - te c h s c hoo l s and manufacturing extension partnerships.

Th i s map shows t ha t manu fac t u r i ng

i nnova t ion c l u s te r s a re a l ready i n

place. These c lusters are natural ho t

spots for advances in manufactur i ng

te c hno logy to oc cu r.

In teragency Mfg Str uc ture

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MANUFACTURING INNOVATION CLUSTERS

MA N U FAC T U R I N G MA N DAT E

M i n i m i z e s t r u c t u r a l c o s t b u r d e n s

· Lower business taxes and avoid any new tax increases on U.S. manufacturers

· A v o i d e x c e s s i v e r e g u l a t i o n s

· Encourage investment in retooling plants and new equipment

Enhance collaboration between government, academia and industry

· Coordinate Government support and utilization of the existing national network of Manufacturing Innovation Clusters

· C r e a t e a s t a n d i n g I n t e r a g e n c y Manufacturing Structure made up of Cabinet o f f ic ia ls , industry leaders , a n d a c a d e m i c s

· S u p p o r t a n d s p o n s o r t a r g e t e d t e c h n o l o g y c h a l l e n g e s

B u i l d a b e t t e r e d u c a t e d a n d t r a i n e d w o r k f o r c e

· Develop a national manufacturing s k i l l s c e r t i f i c a t i o n p r o g r a m

· Support grants, scholarships and/or incentives for Science Technology E n g i n e e r i n g a n d M a t h e m a t i c s (“STEM”) degrees

· U t i l i z e M E P s a s c e n t e r s o f m a n u fa c t u r i n g exc e l l e n c e t o t ra i n a n d s u p p o r t l o c a l m a n u f a c t u r e r s

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Incentivize innovation and R&D in new products and manufacturing technologies

· S u p p o r t r e a u t h o r i z a t i o n a n d f u l l funding of the America COMPETES Act

· I m p r o v e t h e R & D t a x c r e d i t a n d m a k e i t p e r m a n e n t

· F u n d t a r g e t e d , s u s t a i n i n g e c o n o m i c g r o w t h t e c h n o l o g i e s

A s s u r e a v a i l a b i l i t y o f c a p i t a l

· R e v i s e S B A / g o v e r n m e n t l e n d i n g r e q u i r e m e n t s t o m a n u f a c t u r e r s q u a l i f i c a t i o n s s h o u l d c o n s i d e r e c o n o m i c c o n d i t i o n s

· U s e t h e e x p a n d e d D PA T i t l e I I I l e n d i n g a u t h o r i t y t o p r o v i d e c r e d i t t o d e f e n s e - c r i t i c a l m a n u f a c t u r e r s

· P r o v i d e i n c e n t iv e s t o b a n k s m a k i n g a n d m a i n t a i n i n g c a p i t a l l o a n s t o q u a l i f i e d m a n u f a c t u r e r s

I m p r o v e g l o b a l c o m p e t i t i v e n e s s a n d p r o m o t e e x p o r t s

· Modernize U.S. export control policy

· S t r e n g t h e n i n t e l l e c t u a l p r o p e r t y p r o t e c t i o n

· S t r e a m l i n e t h e b u s i n e s s v i s a process with major trading partners

AB O U T AMT

IMTS – International Manufacturing Technology Show

The largest and longest running manufacturing technology trade show in the United States

i s he ld eve ry o t he r year a t McCor m i c k P lace i n Ch i cago, I l l . IMTS 2010 w i l l r un

September 13 – 18 . IMTS i s ranked among the larges t t rade shows i n the wor ld .

Re cogn i zed a s o ne o f t he wo r ld ’ s p reem i nen t s t age s fo r i n t rodu c i ng and s e l l i ng

manufac t u r i ng equ ipmen t and te c hno logy, IMTS a t t rac t s more t han 92 ,000 v i s i t o r s

f r o m e ve r y l e ve l o f i n d u s t r y a n d m o r e

t h a n 1 1 6 c o u n t r i e s . I M T S i s o w n e d a n d

m a n aged by AMT – The Assoc iat ion For

Manufactur ing Tec hnology.

AMT – The Association For Manufacturing Technology

Founded in 1902 as the National Machine Tool

Bui lders' Association, AMT supports and promotes the

U . S . m a n u f a c t u r i n g t e c h n o l o gy i n d u s t r y. T h e a s s o c i a t i o n p ro v i d e s U . S . b u i l d e r s

o f m a n u f a c t u r i n g s y s t e m s w i t h t h e l a t e s t i n fo r m a t i o n o n t e c h n i c a l d e ve l o p m e n t s ,

t r a d e a n d m a r ke t i n g o p p o r t u n i t i e s , a n d e c o n o m i c i s s u e s .

MTConnect

M TC o n n e c t i s a n o p e n s t a n d a r d i n t e n d e d t o fo s t e r b e t t e r c o m m u n i c a t i o n a n d

in teroperabi l i ty between manufactur ing contro l s, dev ices and sof tware appl icat ions to

provide better data on machine ut i l izat ion and product iv i ty. I t i s the f irs t suc h standard

for manufacturing, and it is steadily gaining users throughout the industry.

Th i s s tandard was funded and deve loped by

AMT, and made i t s debu t a t IMTS 2008 .

W W W . A M T O N L I N E . O R G W W W . M TC O N N E C T . O R G W W W . I M T S . C O M

©AMT 2010 062310BG2.0