• Parts manufactured on Citizen CNC Swiss Screw machines with up to 10-axis capability.
YOUR MACHINE TOOL BANK
WHY SHOPS CHOOSE BANTERRA BANK
Banterra’s Machine Tool Finance team, with more than a hundred years of experience, understands the challenges of running small to mid-size businesses. The things you do, day in and day out, is truly the backbone of America and as your lender, we are right there with you to support your capital needs and doing what it takes so you can compete with the world in your industry.
PRODUCT OFFERINGS
Industry-leading service with local decisions
Bank commitment to Made In USA and Made In Arizona values
World-class deposit products including Treasury Management
Loan products designed speci cally for machine shops
Editors Corner
This year, 2025, should indeed be a good year for our manufacturing industry. Virtually all forecasts project a healthy year for manufacturing, with Deloitte (source: Deloitte Insights) and the Institute for Supply Management’s (ISM) Supply Chain
Forecast projecting revenues to increase by more than 4% and capital expenditures to grow by more than 5%. On a more local level, everyone I talked to since the election is optimistic about the next 4 years. This is despite potential tariffs, deportations, and uncertainty with interest rates.
ISM elaborates, “After projected growth in manufacturing and services in the first half (H1) of the year, growth in the second half (H2) is projected to accelerate in manufacturing.” The share of survey respondents who forecast the second half of 2025 to be better than the first half is 50 percent, while 9 percent expect it to be worse, and 41 percent expect no change. The diffusion index figure for the second half of 2025 is 70.3 percent, compared to 60.2 percent for the first half of 2025.
According to the ISM® Report On Business®, manufacturing grew for 28 consecutive months from June 2020 through September 2022, was unchanged in October, and dipped into contraction in November 2022. The index has remained in contraction since, except for a reading of 50.3 percent in March 2024. We are certainly overdue for some positive manufacturing economic indicators.
Respondents also expect the U.S. dollar to strengthen against the currencies of seven major trading partners in 2025. A strong dollar is good for the American economy, and it means there is a healthy demand for American-made goods and services.Those who export heavily won’t fare as well, though.
Production capacity in manufacturing increased 1.7 percent in 2024, as 28 percent of purchasing and supply executives reported an average capacity increase of 10.6 percent, 12 percent reported an average decrease of 9.7 percent, and 60 percent reported no change. This compares to a May 2024 predicted increase in production capacity of 2.4 percent for 2024. Expectations for 2025 are for an increase of 4 percent.
The principal means of achieving increases in production capacity in 2024 and predicted for 2025 were (in order of importance):
1) More hours worked with existing personnel
2) Additional personnel
3) Additional plant and/or equipment
4) Replaced equipment with technically advanced equipment.
What does this mean for those in our industry? More overtime equates to higher pay for employees. Replacing older equipment or adding additional equipment helps our US manufacturing companies compete more effectively with their International competitors and lessens the burden of finding additional personnel, which is still projected to be difficult, though less so than in the past. In fact, ISM reports that In 2024, the number of respondents indicating their employer is having trouble sourcing skilled workers dropped to 71%, 12 points lower than 2023 and 15 points lower than 2022.
I encourage you to start your strategic planning sessions as soon as possible to capitalize on what looks like a solid year for us. Until next issue, I wish you a fantastic 2025, and God Bless our Troops!
Linda Daly,Publisher
Pacific Swiss Increases Its Focus on the Southwest, With Local Sales Presence.
Address: 1538 E La Vieve Lane Tempe, AZ 85284 Telephone: (602) 412-7696
www.a2zMFG.com
Kim Carpenter Takashi Sato
Gene Wirth
Published bi-monthly to keep precision manufacturers abreast of news and to supply a viable vendor source for the industry. Circulation: The A2Z MANUFACTURING has compiled and maintains a master list of approximately 8500 people actively engaged in the precision manufacturing Industry. It has an estimated pass on readership of more than 19,300 people. Advertising Rates, deadlines and mechanical requirements furnished upon request or you can go to A2ZMANUFACTURING.com.
The Publisher assumes no responsibility for the contents of any advertisement, and all representations are those of the advertiser and not that of the publisher. The Publisher is not liable to any advertiser for any misprints or errors not the fault of the publisher, and in such event, the limit of the publisher's liability shall only be the amount of the publishers charge for such advertising.
Designed and built for use with Haas ST and DS series CNC turning centers, the Haas Bar Feeder connects directly to the Haas control.
AUTOMATION SYSTEMS
Robot Systems
• HRP-1 System – 7 kg capacity • HRP-2 System – 25 kg capacity
• HRP-3 System – 50 kg capacity
Pallet Pool Systems
• 3-Station for VF-2YT/SS, VM-2
• 6-Station for EC-400
• 6-Station for VC-400/SS
• 6-Station for UMC-1250/SS
• 10-Station for UMC-750/1000/SS
• 10- or- 20-Station for UMC-500/SS Automatic Parts Loaders
• Turning Center APL
• VMC APL
• Small UMC APL
Haas Bar Feeder
All-inclusive design, with plug-and-play capabilities to Haas lathes
We’re excited to announce the launch of our Aluminum Heat Treating services, now available to clients in the West Valley and beyond. As a Nadcap-accredited provider listed on the Honeywell APSL, we’re committed to delivering precision and quality in every treatment.
Our facility is equipped to handle aluminum solution treatments, aging, and partial annealing, with an oven capacity of up to 48” depth, 24” width, and 16” height.
For inquiries or to discuss your next Aluminum Heat Treatment project, please visit our website: https://lynchbros.com/capabilities/ aluminum-heat-treating/, or reach out to Jackson Weeks at Jacksonw@ lynchbros.com.
The New Era of Automation: Introducing RoboFlex™ by
Productivity
We are excited to announce that Productivity’s automation department has rebranded as RoboFlex™ by Productivity. With manufacturing companies facing the challenge of finding sufficient employees to
operate their equipment, automation has become essential for maintaining and enhancing efficiency and part quality.
RoboFlex has long been a trusted name in the automation market. Productivity’s automation department has provided preengineered automation solutions under the “RoboFlex” trade name for years. Now, the RoboFlex name has been expanded to cover Productivity’s entire automation business, from pre-engineered solutions (re-branded with new, simplified model names) to custom projects tailored to the customer’s exact specifications.
RoboFlex by Productivity represents our commitment to providing cuttingedge automation solutions tailored to meet the evolving needs of customers. RoboFlex offers unparalleled flexibility and customization, empowering businesses to achieve maximum operational efficiency with reduced downtime and lower labor
Okuma’s MULTUS U3000 Multitasking Machine offers an ideal combination of power, speed, and process flexibility. A broad scope of machining functions and the ability to complete tasks in a single setup make this machine simple and efficient for producing a variety of parts. Combining powerful turning and milling capabilities, made possible with Okuma’s OSP-P300 control, equals one thing – increased production capacity.
Explore all of the powerful features of the MULTUS U3000, including:
• Full 5-axis contouring (available as an option)
• New compact B-axis spindle
• 240-degree B-axis range
• 30 hp milling motor spindle
• 12,000 RPM H1 milling spindle
• Wide range of ATC configurations available (40 to 180 tools)
Announcements & Releases Continued
costs.
ABOUT ROBOFLEX:
With over 900
automation systems installed and 25 years of experience, RoboFlex stands at the forefront of automation integration, leading the industry as a pioneer in innovative solutions. Our extensive experience and proven track record make us the first choice for companies seeking to revolutionize their manufacturing processes.
For more information about RoboFlex and our range of automation solutions, visit our website at roboflex. productivity.com or contact us via phone at 763-267-6010 or email at roboflex@productivity.com.
Catherine Harmon joins Alerus as Arizona Commercial Banking Team Lead
Alerus is pleased to welcome Catherine Harmon to lead the commercial banking team in Arizona. Harmon is a seasoned financial professional, with more than 25 years of commercial banking experience. Before joining Alerus, she served as a commercial relationship
manager at Enterprise Bank & Trust in Phoenix from 2017 to 2024. Prior to that, she served as a commercial real estate banking portfolio manager for National Bank of Arizona. Her areas of expertise include commercial and industrial lending, commercial real estate, and credit analysis. As commercial banking team lead, Harmon is responsible for generating new business opportunities and guiding the team as they serve clients in the commercial and industrial banking portfolio. She also serves clients directly.
Harmon was born and raised in Taiwan and moved to the United States on her own at age 18 to pursue higher education opportunities. She holds a bachelor’s degree in accounting and management and a master’s degree in real estate development from the University of Utah. She is fluent in Chinese Mandarin (her first language) and English. Passionate about giving back to her community, she currently serves as treasurer for Phoenix-based nonprofit Gabriel’s Angels. She is
personal use, and business accounts. With the addition of Arizona Iron Supply, we can accommodate even larger industrial accounts and offer even more equipment and metal inventory to choose from.
based in Phoenix.
Announcements & Releases Continued
We feel privileged to continue to serve Phoenix and surrounding areas. We can’t wait to show you how this development will improve your metal purchasing, metal recycling, and Rolloff Service experience.
Alerus operates 29 banking and wealth offices, with locations in Grand Forks and Fargo, North Dakota; the Minneapolis-St. Paul, Minnesota metropolitan area; Rochester, Minnesota; the southern Minnesota area; Marshalltown, Iowa; Pewaukee, Wisconsin; and Phoenix and Scottsdale, Arizona. Alerus also operates a commercial wealth office in La Crosse, Wisconsin. Alerus Retirement and Benefits serves advisors, brokers, employers, and plan participants across the United States.
members receive FREE WiM membership as part of their benefits.
Visit one of our two locations to see how this exciting change will benefit you! Davis Metals: (602) 267-7208 / 3322 E. Washington Street, Phoenix, AZ 85034 Arizona Iron Supply: (602) 244-9649 / 130 S 23rd St, Phoenix, AZ 85034
The NTMA/ Arizona Chapter welcomes the following new Industry Partners: Bell Bank, Premier Industry Partner, Electripure, Industry Partner. For the full list of partners visit our website www.arizonatooling.org
L andmark Solutions held an Open House event at Metzfab Industries in Phoenix earlier this month.
The ATMA October 10 dinner meeting spotlighted the team from Arizona CNC and Okuma, with their experts recapping new technology and trends in manufacturing as seen at the IMTS show in Chicago. Also featured were Sepi Hoff and Tonya Rollins, our partners from WiM (Women in Manufacturing) with membership information and highlights. NTMA
Foam Packaging Specialties, ATMA Industry Partner, hosted a lunch and facility tour on November 7, showing over 30 members the extensive manufacturing capabilities and the high-quality products they deliver to customers, including an ISO 7-Federal 20E-Standard Class 10,000 Cleanroom.
Metzfab’s facility was chosen due to their company growth, and the addition of several new state of the art pieces of equipment. Metzfab is always pushing technology and equipment limits in an effort to build and deliver the best parts to their customers.
Metzfab recently installed a new OMAX 80x 5 axis waterjet, a Bystronic Tube Laser system, a Bystronic ByStar Fiber Laser with full automation, multiple large high performance press brakes, and a fully automated robotic press brake. Installing soon is a new material finishing machine also coming from the Landmark Team.
On November 13, ATMA hosted our annual Strategic Planning Session for members and guests at the Aviation Institute of Maintenance, outlining our goals and vision for the next 3 years.
The annual ATMA Holiday Party was held December 12 at Martin Auto Museum,
The Landmark Solutions open house event was a success, and we are all excited to continue our long term partnership with Metzfab. Everyone attending the event were impressed with the new equipment and technology, and how this has helped Metzfab grow and diversify their business.
Happy New Year!
The Arizona Manufacturing Extension Partnership would like to take this time to say " T hank Y ou " to our clients, vendors , partners and Board Members and wish everyone a very safe, h appy and prosperous 2025 ! Thank you for your continued support!
From your AZ MEP Team
with over 90 members, their families and guests attending. The museum features over 175 vehicles, including classic cars, hot rods, customs, imports and much more. Attendees donated more the 300 pounds of food for our St Mary’s holiday food drive.
2025 Upcoming Events: January 30 : ATMA Kick Off dinner meeting with NTMA president Roger Atkins as our keynote speaker. We will be inducting our new ATMA board of directors and officers, presenting NTMA service awards and introducing the 2025 ATMA Premier and Industry Partners. February 12: Lunch and facility tour at NTMA member Foresight Technologies. March 13: Lunch and facility tour at ATMA Industry Partner Phoenix Heat Treating. March 27: Eat, Drink, Mingle event showcasing ATMA Industry Partners. Save the Date- May 15, 10th annual Ocotillo Golf tournament.
All events and membership information can be found on our local website at arizonatooling.org
MIDACO’s Automatic 4-Pallet Changer with Trunnion System: Redefining CNC Machining Productivity and Versatility
MIDACO Corporation, a leader in machining productivity solutions, announces the launch of its Automatic 4-Pallet Changer with Trunnion System for CNC machining, as seen at this past IMTS 2024. Designed for seamless integration with Vertical Machining Centers (VMCs), this system optimizes workflows by eliminating idle time, maximizing spindle utilization, and increasing flexibility for complex jobs.
High-Volume and Mixed-Job Efficiency with a Four-Pallet Shuttle
MIDACO’s four-pallet shuttle system is engineered for both high-volume
Announcements & Releases Continued
production and low-volume, high-mix jobs, enabling continuous operation without interruption. Operators can stage multiple ops of a production job or load a series of different parts on four pallets, which automatically shuttle into the machining area when the spindle completes a cycle. This setup enables operators to load and unload parts on one pallet while machining continues on another, reducing idle time and exponentially increasing productivity.
Built for Robust, Flexible Capacity
MIDACO’s 4-Pallet Changer features durable cast aluminum or cast-iron pallets, in XY sizes ranging from 28” x 15” (711mm x 381mm) to 50” x 24” (1270mm x 609mm). Each pallet is automatically transferred with +/- 0.0001” (0.0025mm) repeatability onto a cast-iron receiver mounted directly on the machine table that supports up to 500 lbs (226 kg) for smaller models and up to 2,000 lbs (908 kg) on larger models with weight evenly distributed. This system is powered by a servo drive and equipped with a rotary shuttle, automatic door, and CE light curtain for safety.
The shuttle system’s two loading stations allow clear access to all four pallets with no overhead obstruction, making it ideal for workflows requiring heavy part handling or crane loading.
For added versatility, MIDACO’s Automatic 4-Pallet Changer integrates a Trunnion System that enables 4th-axis operations on a 3-axis VMC. Equipped
with four trunnions, the system uses a single 4th-Axis Rotary Indexer (not included) to power all trunnions, and eliminates any need for cable management, simplifying the process. This feature is ideal for shops handling parts with complex geometries, angled surfaces, or multi-sided components, making it possible to perform intricate work in a single setup. The included actuator assembly provides smooth, reliable trunnion movement and straightforward operation. The Trunnion System minimizes operator intervention, boosting throughput.
Efficient VMC Integration and Control
MIDACO’s 4-Pallet Changer is fully integrated with the VMC via M-codes, allowing operators to control the system directly from the VMC’s control panel. This ease of use reduces training time and enables faster production start-up, allowing operators to manage the pallet changer with confidence.
A Powerful Tool for Modern Machine Shops
For machine shops looking to reduce idle time and handle more challenging jobs, MIDACO’s Automatic 4-Pallet Changer is the answer. With its durable build and advanced features, this system empowers any shop to maximize their CNC equipment’s potential by enabling uninterrupted machining, expand partloading capacity, and integrate 4th-axis machining on their new or existing 3-axis equipment to stay competitive in an evolving market.
About MIDACO MIDACO Corporation has been a trusted provider of Announcements Continued Page 16
YOUR PARTNER
Product SPotlight:
SPECIALTY TURN PRODUCTS
3020 South Park Drive ,Tempe, AZ
sales@stp-az.com
• Tel: 602-426-9340
Swiss Lathe
We Manufacturing Complex Intricate Parts Requiring Extreme Precision And Quality
We Are Built For High Production Parts And Can Handle Extremely Tight Tolerances
Announcements & Releases Continued
manufacturing productivity solutions for over 55 years. Offering automatic and manual pallet changers, CNC auto doors, robot access doors, trunnion systems, hydraulic docking systems for automated fixtures, and industrial vacuums for CNC chips and fluids, MIDACO helps machine shops worldwide increase efficiency and optimize machining processes.
Industrial Production Returns to Growth After February’s Storms Subside
1138 W Watkins St Phoenix, AZ 85007 (602) 254-4173 vmw1909@valleymachineworks.com
The Federal Reserve reported that industrial production in March rose 1.4%, returning to growth after an unseasonably stormy February knocked it down 2.6%. The report shows total industrial production rose 2.5% at an annualized rate during the first quarter of 2021 despite the losses endured in February by manufacturing, mining, and utilities companies.
Motor vehicles and parts production, which fell 10% in February, rose 2.8% in March but remained depressed by a persistent shortage of semiconductors. Most durable goods indexes rose between 2% to 3%.
Kenton County Honors Mazak
Corporation’s 50th Anniversary
For more information on MIDACO’s Automatic 4-Pallet Changer with Trunnion System, visit www.midaco-corp.com or contact the MIDACO sales team at (855) 593-5668 / sales@midacocorp.com
Valley Machine Works will now be offering industrial painting.
The industrial production gauge includes productivity in three sectors: manufacturing, mining, and utilities. Manufacturing production (which excludes mining and utilities output) rose 2.7% in March after falling 3.7% the month before. Mining production improved 2.7%, while utility output fell 11.4% thanks to unseasonably warm March temperatures. Manufacturing output rose 1.9% at an annualized rate.
In nondurable manufacturing, the index for the chemicals industry rose 4.1%, and petroleum and coal products rose 5.7%, although neither sector has fully recovered from severe weather damage—the Federal Reserve noted that some chemicals factories remain offline thanks to damage sustained from February’s winter storms. Most nondurable goods indexes rose between 0.9%
Valley Machine Works (VMW), founded in 1909, is proud to announce its acquisition of an Ameri-Cure 1000HI paint booth.
Capacity utilization in manufacturing rose by 1.9 points, also reversing February losses.
This acquisition will complement the machining and fabrication capabilities of VMW. The new paint booth will have the ability to paint items as large as 25’L x 9.5’W x 8.5’H.
Please call VMW for a quote today!
The Kenton County Fiscal Court of Kentucky declared October 31, 2024, as Mazak Corporation’s 50th Anniversary Celebration Day in recognition of the advanced machine tool manufacturer’s half century of influence and innovation in Northern Kentucky. During those years in Florence, Kentucky, the Mazak iSMART Factory™ has expanded to 20 times its original size. The facility currently produces more than 70 machining solutions with
Almost all market groups saw improvements in March, despite lingering challenges. The Federal Reserve’s index for other manufacturing, which includes publishing and logging, remained the same, but durable goods and nondurable goods indexes rose 3.0% and 2.6%, respectively.
Contact: Valley Machine Works
If February was notable for its storminess, March was notable for its heat. The unseasonably warm month coincided with a roughly 10% drop in consumer energy products, and the 11.4% drop in utilitie s utilization was the largest recorded in the history of the index’s 48-year history.
Announcements Continued Page 18
Tornos 6 axis Sigma
Tornos MultiSwiss 6x14
Family Run For 35 Years
Competitive Pricing
3 Companies - 1 Ownership
11 CNC Swiss Screw Machines
SPECIALTY TURN PRODUCTS
First Light F-35 Helmet Test A Success
Announcements & Releases Continued
“We’re honored to make our corporate home here in Kentucky and to participate in the economic vitality of the state,” said Dan Janka, President of Mazak Corporation. “This proclamation reinforces our enduring commitment to the manufacturing industry and our focus on sustained growth.”
Throughout the 50 years since Mazak Corporation opened its Kentucky facility in 1974, the company has honored the vision of the late Teruyuki (Terry) Yamazaki, founder of Mazak and former Chairman of Yamazaki Mazak Corporation. Yamazaki emphasized staying ahead of technology while remaining close to the manufacturing industry and its customers. The company is honored that this proclamation reflects its global and local commitment to innovation and progress.
The first test of a new, lightweight F-35 helmet was successful, according to the prog ram office, a promising sign that the Pentagon can qualify and implement all three fixes to the jet’s escape system by the end of the year.
About Mazak Corporation
Recently, at Holloman Air Force Base, New Mexico, Lockheed Martin’s F-35 conducted the fir st test combining all three solutions designed to reduce the r isk of neck injury to F-35 pilots during ejection, according to spokesman Joe DellaVedova. Once the full gamut of testing is completed, hopefully by the end of the summer, the JPO can beg in implementing the two modifications to the ejection seat and issuing the new Generation III “light” helmet to the fleet, he said
The recent sled test, conducted with a 103-pound mannequin, is the latest sign that the JPO can make good on its promise to finish the three design fixes by November, allowing the military services to lift restrictions on lightweight pilots flying the F-35 Last year, Defense News first repor ted that pilots under 136 pounds were barred from flying the fifth-generation aircraft after testers discovered an increased r isk of neck damage to lightweight pilots ejecting from the plane. The US Air Force has also acknowledged an “elevated level of r isk” for pilots between 136 and 165 pounds.
Mazak Corporation is a leader in the design and manufacture of productive machine tool solutions. Committed to being a partner to customers with innovative technology, its world-class facility in Florence, Kentucky produces over 70 models of turning centers,
North South Machinery Expands Its Team in Arizona
Announcements Continued Page 20 a local workforce that exceeds 600 employees.
The prototype helmet tested weighs about 4.63 pounds, approximately 6 ounces lighter than the orig inal Gen III helmet, and is designed to ease some strain on smaller pilots’ nec ks during ejection
Multi-Tasking machines and vertical machining centers, including 5-axis models, Hybrid Additive processing machines and Swiss Turning Machines. Continuously investing in manufacturing technology allows the Mazak iSMART Factory™ to be the most advanced and efficient in the industry, providing high-quality and reliable products. Mazak maintains eight Technology Centers across North America to provide local hands-on applications, service and sales support to customers. For more information on Mazak’s products and solutions, visit www.MazakUSA.com or follow us on Twitter and Facebook.
Although the test was the fir st test of the new helmet, the JPO, Loc kheed Mar tin and seat-maker Mar tin Baker have conducted at least seven other tests with the latest version of the seat, which is equipped with two modifications designed to reduce r isk to pilots.The fixes to the ejection seat itself include a switch for lightweight pilots that will delay deployment of the main parachute, and a “head support panel,” a fabric panel sewn between the parachute r isers that will protect the pilot’s head from moving backward dur ing the parachute opening.
Please welcome Tyler Hildebrand to the team! He recently joined North South Machinery - Arizona as a new salesman, bringing fresh energy and enthusiasm. A recent graduate from Grand Canyon University, he earned his degree in May and is excited to embark on this new chapter in the machinery industry. Tyler’s sales journey began in the fast-paced world of doorto-door sales, where he honed his communication and
The prog ram office has about another 10 tests planned, which will use a mix of low-, middle- and high-weight mannequins.
“This initial test had promising results and the F-35 enterpr ise is on a path to qualify the helmet . by the end of this summer,” DellaVedova told Defense News. “The lighter helmet expected to be fielded by the end of the year is in line with the seat timeframe as well.”
Metalworking fluids formulated to meet aerospace demands.
• Improve process stability on heat-resistant Super Alloys
• Easier robotic handling with cleaner parts
• Reduce costly maintenance interruptions
• Approved for Alloys of Aluminum, Titanium, Nickel, Chrome, and Steel
• Maximize gains from high pressure systems
• Enhance filtration system performance
Announcements & Releases Continued
relationship-building skills. While new to the industry, Tyler is eager to learn, grow, and deliver exceptional value to his clients. Customers will have the opportunity to meet Tyler in the field, where he will be ready to assist with their machinery needs and build lasting partnerships.
CHIPS funding
finalized for Amkor’s West Valley packaging factory
Amkor Technology Inc. has secured as much as $407 million in CHIPS Act grants from the White House for its proposed advanced semiconductor packaging and testing plant in metro Phoenix.
The U.S. Department of Commerce announced on Dec.
20 that it has awarded the funds to Tempe-based Amkor (Nasdaq: AMKR) for its 500,000-square-foot factory that’s expected to employ 2,000 people in Peoria.
Amkor’s funding was finalized months after the White House said it had signed a preliminary agreement for $400 million in grants and $200 million in loans for the company’s project. Amkor ultimately declined the $200 million loan, according to a Department of Commerce spokesperson.
So far the White House has awarded more than $33 billion of the $36 billion in proposed incentives to date for projects across 21 states that are expected to create more than 125,000 jobs. Also on Dec. 20, federal officials announced a $4.7 billion CHIPS Act award for Samsung and $1.61 billion award for Texas Instruments.
Arizona has secured at least $15 billion in CHIPS funds for some of the biggest semiconductor facilities in the U.S., including Taiwan Semiconductor Manufacturing. The award comes on the heels of business groups calling for distribution of CHIPS
EVERY FINANCIAL RESOURCE ASSEMBLED FOR
BANK WITH PURPOSE.
Announcements & Releases Continued
Act funds and criticism of the program from Presidentelect Donald Trump.
Funds will be disbursed to Amkor based on completion of project milestones.
The $2 billion investment by Tempe-based Amkor, the largest outsourced semiconductor assembly and test company based in the U.S., means chips will not have to be sent overseas to be packaged after being manufactured here.
“This new facility will serve as a critical cornerstone in establishing a robust semiconductor manufacturing supply chain within the United States,” Giel Rutten, president and CEO of Amkor, said in a statement.
Peoria project to be built at Five North at Vistancia
U.S. Secretary of Commerce Gina Raimondo said Amkor’s project will bring the world’s “most leading-edge packaging technologies” to the U.S. for the first time, “enhancing domestic supply chain resilience and establishing the U.S. as a global technology leader for decades to come.”
“Amkor’s project will support critical industries, such as AI
and high-performance compute,” Raimondo said.
The Amkor facility will be developed in Five North at Vistancia, the commercial corridor in the master-planned Vistancia community in the northwest part of the Valley. It’s also expected to create up to 2,000 construction jobs.
The tech company recently secured 56 acres for its new semiconductor project, including 50 acres of donated land from the city of Peoria. The city said in December that Amkor was expected to submit full site plans by the end of 2024.
Amkor has said it will break ground on the first phase of its project by September 2025 with delivery expected two years after that. The second phase is estimated to deliver by September 2034.
When fully operational, Amkor’s facility will package and test millions of leading-edge chips for TSMC, GlobalFoundries and Apple Inc.
The company generated revenue of $1.86 billion in the third quarter, an increase from $1.82 billion in the third quarter last year.
We utilize an extensive lineup of machinery to cut and fabricate finished products, including CNC knife cutters, routers, and a 5-axis waterjet; belt-fed and manual die presses, band saws, and industry-specific machines such as automated laminators and glue applicators. Each packaging product we fabricate is specific to the individual end-user product the packaging is designed to protect, so no two packaging solutions are the same. There is almost no limit to the type and size. Foam Packaging Specialties is a custom protective packaging fabricator, locally owned and operated near ASU in Tempe, just south of Apache and McClintock. We have been in business since 1972, operating out of our current location since the late 1980s. As a leader in highly engineered packaging solutions, our customers have come to know and trust our team’s ability to protect their products for shipment across the country and around the world, with some of our packaging being used to safeguard highly sensitive semiconductor parts in locations as far away as Southeast Asia.
Foam Packaging Specialties is a custom protective packaging fabricator locally owned and operated near ASU in Tempe just south of Apache and McClintock. We have been in business since 1972, operating out of our current location since the late 1980’s. As a leader in highly engineered packaging solutions, our customers
sensitive semiconductor parts in places as far away as Southeast Asia.
We utilize an extensive lineup of machinery to cut and fabricate finished products, including CNC knife cutters, routers, and a 5-axis waterjet, as well as belt-fed and manual die presses, band saws, and industry-specific machines like automated laminators and glue applicators. Each packaging product we fabricate is tailored to the specific needs of the end-user product it is designed to protect, ensuring that no two packaging solutions are alike. There is virtually no limit to the type, size, material makeup, complexity, or fragility of the products we have protected over the years.
In addition to our commitment to investing in the most up-to-date equipment for our industry, we make the process of designing
YOU KNOW THE DRILL
But Do You Know The Methods?
High Touch Sales, Engineering, Service, & Software
RoboDrills make quick work out of any MILLING, DRILLING OR TAPPING jobs.
RELIABILITY has also been addressed in all areas of the machine design. Coupled with the latest FANUC 31 i -B5 PLUS CONTROL , the ROBODRILL IS THE PREFERRED MACHINE IN ANY MANUFACTURING FACILITY .
Announcements & Releases Continued
packaging around each product simple and fast. With our in-house design and engineering team, we take a concept - whether a concept already exists, or our expert team needs to create one - and turn it into reality with a 3D model and prototype, all in one place. Our mobile 3D scanner, a recent addition to our lineup, allows our engineers to build a workable 3D file of an end-user product in minutes, which we then use to design protective packaging around, all without the product ever having to leave the end-user facility saving time and reducing development costs.
FPS is proud to say we are the only packaging fabricator in Arizona, and one of very few in the southwest region, who can design, engineer, and fabricate “complete kit”, certified, cleanroom protective packaging solutions to ISO 7 standards via our certified ISO 7, Class 10,000 cleanroom facility. Our facility services the semiconductor, medical, and aerospace industries with packaging solutions that will not contaminate our customers’ cleanroom environments or products during the final packing and shipping phase.
With a robust selection of packaging materials to choose from, 50+ years of packaging design and engineering experience for nearly every industry, and everything from single run/prototyping to large run production capabilities, we are ready to help.
We live by our motto - “What matters is inside.” For more information, contact: Rick@Foampackspec.com; 480-966-6889
Honeywell to sell PPE business for $1.3B
Honeywell International is selling its personal protective equipment business for $1.3 billion to Protective Industrial Products, a portfolio under private equity firm Odyssey Investment Partners, the company announced last month.
The company’s PPE business has approximately 5,000 employees and operates 20 manufacturing facilities and 17 distribution sites across the U.S., Mexico, Europe, North Africa, Asia Pacific and China.
The pending deal includes Honeywell’s PPE brands such as Fendall, Fibre-Metal, Howard Leight and KCL. The sale is expected to close in the first half of 2025.
Honeywell’s divestiture of its PPE portfolio is part of the chemical and electronic maker’s plans to exit the protective equipment sector. In 2021, the company sold its industrial protective footwear to Rocky Brands for $230 million.
Albuq uerquebased company Array announced a $3 million investment in Swap Robotics, a Canada-based startup focused on utility-scale solar robotic operations, maintenance, and automation solutions.
A company centered around and solar tracking technology, the move will help Array as automation develops rapidly in the industry, especially around photovoltaic (PV) installation technology.
“Swap has sort of two business lines, one with operations and maintenance, and one with solar panel laying automation,” said Aaron Gabelnick, Array’s chief strategy and technology officer.
According to Gabelnick, although Array is not in the tracker installation business, they manufacture trackers, and this partnership with Swap will allow them to install the trackers in a cost-effective, safe way that can help alleviate a labor shortage and increase workforce capabilities.
This is achieved through a robotic system that that picks up and places the solar panels during installation.
Doing the installation in the traditional way, through manual labor, takes the most time and is the costliest from a safety perspective, he added.
This reasoning, according to Gabelnick, has led Array to “letting robots do what robots do well” including lifting heavy things, and completing other more dangerous jobs on the solar site to help with both efficiency and safety.
The Swap Robotics platform has multiple different use cases for “outdoor work robotics,” according to Tim Lichti, the company’s chief executive officer.
They are focused on solar applications for now, he added. Swap’s initial application includes dozens of robots in a field cutting vegetation on utility scale solar sites, typically 500 acres or more in size.
The name Swap Robotics implies that the same robot and robotic platform can have attachments swapped out to do various use cases. Array’s interest is using the technology on a robotic panel lane.
Currently, panels can be 80 or more pounds, and lifting panels throughout the day can be exhausting and easily lead to injuries, according to Lichti.
That way, “humans can continue to do what they do best,” Lichti said, including “finer tuned” or more technical work.
“It’s something that can be available to the market in a in a quick fashion, to folks with existing products that are out there, and [the technology] also has some promise for new products that can help to further enhance automation in this process as well,” he added.
There is typically a shortage of workers for these sites, according to Lichti. Sites tend to be in rural areas, due to their size, and sometimes many hundreds of people are needed. In fact, it is projected by 2033 the amount of solar installation workers in the U.S. will only increase by 22%, substantially less than the 48% needed, the Bureau of Labor Statistics estimates, according to an article by national news organization Reuters.
Swap’s technology can help ease labor shortages, while also greatly reducing injuries, making the job more appealing, with the hope to increase worker retention, he added.
Swap has been impressed by Array’s desire to “future-proof” their business by being at the forefront of automation.
Automation pertaining to the clean energy industry, he added, needs to be positioned to scale quickly and ultimately contribute to more cost-effective clean energy. “[Array is] one of the largest solar tracking providers globally, [and there is] a ton of opportunity to work together longterm,” said Lichti.
If Swap reaches certain agreed-upon technical and commercial milestones, Array has agreed to provide the company with another two investments of $1 million each.
Swap’s research and development team is based in Kitchener, Ontario, in an area that is “kind of a tech hotbed,” Lichti said.
If SwapHowever, almost all company operations are and will continue to be in the United States, he added.
The company will likely see a growing presence in the Southwest as a result of this investment, said Lichti, although it’s too early to be sure of exactly what that will look like.
To date, Swap has raised $11.5 million U.S. venture capital and is “in talks with a number of strategic investors and VCs,” Lichti said.
An Array spokesperson confirmed the company anticipates their new facility will be move-in ready at the end of 2025.
By Molly Callaghan – Albuquerque Business
First
Manufacturing Salaries Plunged in 2024, and Why That’s Great News
The 2024 IndustryWeek Salary Survey showed a massive decline in average wages, but that reflects more young people working, not wage cuts at the top end.
In an ambiguous result for the manufacturing industry, average salaries reported by readers in our 2024 IndustryWeek Salary Survey fell almost across the board—$119,785.41 in 2024, 10.6% lower than the $ 133,996.66 reported in 2023. That nearly $14,000 salary decline, ironically, could be a good thing.
In a more positive sign, the number of respondents indicating difficulty hiring skilled talent fell to pre-Covid lows. That apparent increase in the number of new hires may help explain some of the dramatic loss in average pay.
Average salaries were lower for almost every job function, but that likely reflected a broader demographic trend with younger, lower-paid workers participating in the survey in greater numbers.
IndustryWeek readers reported lower overall salaries across almost all groups compared to their 2023 responses. Average salaries for each main area of
responsibility were lower than they were in 2023, as were average wages for men, women, all surveyed ethnic groups except African-Americans, and every age group except those in their forties.
Intriguingly, responses to the question, “How has your base salary changed from one year ago?” suggest that salaries are largely growing. The plurality, 28.3%, indicated their base salary had increased between 3-5% from a year ago. Only 4.28% of respondents said their salaries had actually fallen, compared to 27.55% who reported no change and the majority, 68.17%, who said their salaries had increased by at least 1%.
As any data scientist (0.48% of respondents; average salary, $127,000) should respect, something changed with the data we’ve collected. The latest average private manufacturing salary reported by the Bureau of Labor Statistics is $44.17 an hour for the second quarter of 2024, representing an annual salary of about $92,000.
Since IndustryWeek’s articles on manufacturing leadership are often aimed at management positions (See the above point about C-suite representation), we could expect our average numbers to be higher. Considering that the 2024 survey more than doubled its sample size, it’s fair to infer that the new, lower average salaries may simply be more accurate than 2023’s figures.
The biggest increases in survey participation took place at the young end of the scale with the biggest declines coming from older, higher-paid workers.
Older employees with more experience usually make higher wages, and last year, responses skewed older with only about one-in-five workers saying they were in their 40s or younger. This year, that group made up nearly one-in-three responses. Our results showed a similar percentage increase in respondents who had worked for their current employer for 10 years or fewer: in 2023, 46% of respondents fell into this category, while in 2024, 56% did.
If this increase in younger respondents isn’t merely a sign that IndustryWeek has become neato and keen with young people, then it could be a sign of genuine demographic change in the industry. It could suggest, amid a decades-long complaint of short talent supply, that manufacturing is getting an influx of fresh blood. Tantalizingly, responses to the question on skilled talent availability suggest just that.
In 2024, the number of respondents indicating their employer is having trouble sourcing skilled workers dropped to 71%, 12 points lower than 2023 and 15 points lower than
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2022. Taken in concert with lower salaries, higher proportions of manufacturing workers with lower ages and less experience, this suggests that manufacturing is actually moving in a positive direction on hiring — glimmers of hope for an industry long concerned with a lack of available talent.
Responses to our question on company tenure also support this: Just under 20% of respondents this year have only worked at their current workplace for 1-2 years, a 7-point increase from 2023.
Survey participants noted the least trouble finding workers in the past four years, though the overwhelming majority of companies still struggle with recruitment.
Unfortunately, a strong influx of young talent making entry-level wages getting into manufacturing doesn’t answer all the data trends. Groups reporting lower salaries than previous years also included those in their 50s and 60s. While the survey doesn’t capture reports from laid off or retired employees, the results suggest that higherpaid older and experienced workers are retiring at higher rates.
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Post-IMTS Decline in Manufacturing Technology Orders Blunted by Rebound in Aerospace Investment
Orders of manufacturing technology, measured by the U.S. Manufacturing Technology Orders (USMTO) report published by AMT – The Association For Manufacturing Technology, totaled $385 million in October 2024. These orders for metalworking machinery decreased 14.5% from September 2024 and were 5.5% behind October 2023 orders. Year-to-date orders reached $3.74 billion, a decline of 7.5% compared to the first 10 months of 2023.
Although orders of manufacturing technology are still on a longer-term downward trend, October 2024 orders were 3% above the average value of all Octobers. This downward trend represents a normalization of order activity after a frenzied buying cycle caused by manufacturers grappling with increasing demand and the supply bottlenecks of the COVID pandemic.
After significantly increasing purchases in September 2024, contract machine shops, the largest customer of manufacturing technology, pulled back orders in October by nearly 30%. This was due to several factors. The U.S. presidential election likely introduced enough uncertainty that businesses were hesitant to make additional investments. The Boeing machinists strike, which lasted through all of October 2024, also likely freed capacity in shops that tend to serve the aerospace sector.
Unlike contract machine shops, manufacturers of aerospace products and parts increased orders of manufacturing technology to the highest level of 2024 in October. Additionally, average order value increased to the highest level since January 2022. This indicates that, much like the UAW strike in 2023, aerospace manufacturers used
the downtime to replace and expand the technology used on production lines.
In the first full month after the Federal Reserve began reducing interest rates from a peak of 5.5%, manufacturing technology orders fell below the average order value of the previous expansionary period. This is in contrast to the last experience of a soft landing in 1995, when order values remained above the average between the end of the last recession and the first rate cut for at least nine months following the initial cut. Last week’s strong jobs report showed growth in the manufacturing sector, driven largely by producers of durable goods.
A good early indicator of the path ahead will come with the Federal Reserve meeting on Dec. 18 and the next publication
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Insights From AMT?
On Jan. 24, AMT will host the 2025 Winter Economic Forum, featuring the latest Oxford Economics forecast on the economy and manufacturing technology orders. AMT will also recap IMTS 2024 and share important can’t-miss industry insights to prepare manufacturers for the new year. Register for free to attend in person in Cincinnati, Ohio, or virtually. By Christopher Chidzik
Raytheon, Ursa Major say flight test successful for next-gen Army missile motor
Raytheon’s Tucson-based missile manufacturing operation this week announced a successful test for an advanced long-range military solid rocket motor it is developing with Colorado aerospace propulsion systems maker Ursa Major.
The joint project to advance the next generation of smart munitions for the U.S. Army is moving quickly, said Raytheon — a division of Virginia-based RTX Inc. — thanks to the two companies’ combined experience and expertise in digital engineering.
Speed of development has been an important aspect of the project, which started with an investment RTX Ventures made in Ursa Major in 2023 to explore new rocket motor technologies in response to a call from the Army expressing an
urgent need for affordable precisionguided munitions. In addition to affordability and precision, the project also aims to increase range.
Raytheon said it selected Ursa Major to help accomplish this by bringing together both companies’ lowcost component systems and using Ursa Major’s 3D printing systems to develop, manufacture and test the systems at “unprecedented timelines.”
“These long-range solid rocket motors will allow the U.S. Army and allies to strike farther and faster than anything our adversaries have in their arsenals,” said Tom Laliberty, president of Land and Air Defense Systems at Raytheon, in a statement. “This long-range rocket motor technology fills the essential role of providing affordable precision fires, while increasing range, safety, and magazine depth.” By Jeff Gifford – Digital Editor, Phoenix Business Journal
Ahead of Schedule: STEM Careers Coalition Reaches Over 10.7 Million Students
The STEM Careers Coalition – an alliance of industries and non-profit organizations partnering with Discovery Education to create equitable access to free STEM content and career connections – announced it has surpassed the goal of reaching 10 million students by the end of 2025 ahead of schedule. Since 2019, the STEM Careers Coalition has reached over 10.7 million students, including 2.97 million in the 2023-2024 school year alone, 65% of which are from Title I schools.
Student STEM education is critical, as the U.S. Bureau of Labor Statistics predicts STEM jobs will grow by 23% by 2030. Through the STEM Careers Coalition, all K-12 students in the United States and educators are supported with high-quality careers resources, equity of access to key resources, volunteer employee engagement activities, and research.
“Starting this journey in 2019, we knew collaboration was key to inspiring the next generation of the STEM workforce. By bringing diverse industries together in one place for educators, the STEM Careers Coalition allows students to see the breadth of opportunity in STEM and the similarities in critical thinking skillsets that are pertinent across careers,” said Amy Nakamoto, General Manager of Corporate Partnerships at Discovery Education. “We are so thankful to our partners.
We are excited for the next evolution of the STEM Careers Coalition in the emission to ensure that all students have what they need to explore STEM jobs.”
The STEM Careers Coalition supports diverse career awareness and exposure. The Coalition works to prepare all students for future jobs in STEM, developing the skills and knowledge needed to succeed in college and a career through high-quality classroom resources, career exploration tools, after school activities, digital content, and more. The STEM Careers Coalition features a large network of partners from a variety of industries.
The STEM Careers Coalition frequently provides students and educators new resources aligned to learning standards. Amongst the newest materials is the Mission Possible Virtual Field Trip: Re-powering the Future, premiering on November 21, 2024. In addition, 14 new career bundles introduce K-12 students to careers like a senior data scientist, gnotobiotics training coordinator, fire protection design manager, chemical engineer, and more.
Learn more about the STEM Careers Coalition at stemcareerscoalition.org or on the award-winning K-12 learning platform, Discovery Education Experience. For more information about Discovery Education’s awardwinning digital resources and professional learning solutions visit www.discoveryeducation.com, and
stay connected with Discovery Education on social media through X, LinkedIn, Instagram, TikTok, and Facebook. ###
About the STEM Careers Coalition
The STEM Careers Coalition solves for critical gaps in diverse representation in the STEM professional workforce. The Coalition is an alliance of industries and non-profit organizations, reaching 10.7 million teachers and students with equitable access to STEM resources and career connections since its launch in 2019. The Coalition will continue to ignite student curiosity and influence a diverse future STEM workforce and reach 10 million teachers and students by the end 2025.
3D Barrier Bags Inc. Expands With New Manufacturing Facility In Chandler
3D Barrier Bags Inc., a leader in the production of customized, high-barrier foil bags, is excited to announce the opening of its new stateof-the-art manufacturing facility in Chandler, Arizona. Spanning 22,000-square-feet, the bespoke facility will serve as a key operational hub for the company as it strengthens its service to customers in the Western United States.
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This new location will enhance 3D Barrier Bags’ ability to meet the growing demand for its products in the aerospace, defense and OEM markets, providing even shorter lead times and improved accessibility for its West Coast clients. Chandler, strategically located to serve as a complement to the company’s existing Orlando, Florida headquarters, will enable
“Chandler is an ideal location for our new manufacturing facility,” said Ben Lewis, CEO of 3D Barrier Bags Inc. “The city’s growing industrial base, coupled with its proximity to key markets, allows us to better serve the needs of our clients. We’re also excited about the opportunity to engage with the local community, provide job opportunities and offer continued training and development for our employees. This expansion reinforces our commitment to excellence and innovation in the packaging industry.”
The Chandler plant is expected to create numerous job opportunities, from manufacturing to operations and management. As with its operations in Orlando, 3D Barrier Bags is dedicated to fostering a strong local workforce and providing employees with opportunities to grow within the company. The facility has been specifically designed to ensure streamlined production processes, ensuring the highest standards of product quality and efficiency.
3D Barrier Bags to deepen its relationships with its current customer base while reaching new partners across the region.
Santa Fe startup Molten Salt Solutions receives $3M from Silicon Valley firms
Molten Salt Solutions, a startup based in Santa Fe, announced the successful close of its seed funding round. The company secured $3 million from Silicon Valley firms Future Ventures and True Ventures. The funding will support the development of the company’s first commercial-scale lithium isotope enrichment process.
The company’s founder and CEO John Elling, Ph.D., originally moved to New Mexico in 1991 to take a job at Los Alamos, where he worked for seven years, before he set out on a new career trajectory as an entrepreneur. “I had become, sort of, the scientist who knew how to start companies,” Elling told Albuquerque Business First.
Elling recalled settling into a role working with scientists to help them start companies, demonstrate their technologies have commercial value and work to monetize their technologies.
“It’s a matter of getting the proven technology into the hands of companies that are already in the market because they have the marketing, sales and support, and manufacturing and design already in place,” said Elling.
These experiences led Elling to the formation of Molten Salt Solutions in 2018.“Some scientists had some ideas on the materials that would be necessary by molten salt for required for molten salt reactors,” he said. “We started looking at what kind of specialty materials were going to be necessary (and) very quickly settled on isotopes, because that was something that was going to be needed in enormous quantities.”
Nuclear power currently accounts for nearly 10% of global electricity generation, and almost 20% in more advanced economies.This kind of energy is important because energy sources must be leveraged when other carbon-free resources are needed, when the wind doesn’t blow and the sun doesn’t shine, Elling explained.
Enriching isotopes is very costly and complicated, according to Elling. Companies’ limited abilities to enrich uranium and government restrictions ensure production of nuclear weapons is minimized and closely monitored.
Anyone involved in the startup community knows the difficulties around raising seed funds, and according to Elling, this is the first time he’d ever been approached by funders rather than seeking them out.
Phase 1 of the SBIR paid for the team to demonstrate they could accomplish solvent exchange isotope enrichment with their “secret sauce” and special equipment. Phase 2 has been spent to show that they can scale.In July, the company was awarded $72,339 for three trainees through the New Mexico Economic Development Department Job Training Incentive Program.
Equipment Finance Industry Expands to More Than $1.3 Trillion as Sector Supports U.S. Economic Growth and Innovation
The equipment finance industry expanded to an estimated $1.34 trillion in 2023—a new all-time high—with 82% of endusers using some form of financing to fund their equipment and software (E&S) acquisitions, according to an end-user survey from the Equipment Finance Industry Horizon Report 2024. The report, which was prepared by Keybridge, also reveals that approximately 57.7% of the $2.3 trillion (nominal) in E&S investment in 2023 was financed.
The Horizon Report focuses on the Foundation’s biennial survey of equipment end-users, which was conducted this summer. Using data collected through the survey, the Foundation estimates the current size of the equipment finance industry, assesses the propensity to finance private sector equipment investment for key equipment verticals, and forecasts end-user plans to acquire and finance equipment in 2025.
Leigh Lytle, President of the Foundation, and President & CEO of the Equipment Leasing and Finance Association, said, “The trillion-dollar equipment finance industry has always been the backbone of capital investment, which is a critical component of the U.S. economy. This Horizon Report clearly shows the extent to which businesses and other organizations rely on commercial financing with the majority
of public and private sector capital expenditures acquired through loans, leases, or lines of credit. Our industry financed supply chains and supported business growth that helped stave off recessionary pressures amid elevated inflation and high interest rates, enabling equipment and software investment to expand in 2023. The report also indicates the industry is well positioned to support forecasted increases in equipment and software, including innovative, high-growth areas like generative AI, equipment-as-a-service (EaaS) subscription-based models, and climate financing. This report delivers must-have insights that will help business leaders and decision makers stay ahead of the game.”
Highlights from the Horizon Report include:
Equipment finance industry growth. According to official government figures, E&S investment (both financed and not financed) expanded by a solid 5.3% in 2023 to $2.3 trillion (nominal). The Foundation’s estimate that approximately 57.7% of this investment (and 64.2% of private sector investment, per the end-user survey) was financed yields an estimated industry size of $1.34 trillion. This figure represents 7.1% nominal growth for the equipment finance industry compared to 2022.
End-user reliance on financing. The end-user survey revealed that 82% of respondents who acquired equipment or software in 2023 used at least one form of financing to do so. This represents a slight uptick from the 79% of respondents
indicated in the 2022 survey. Increase in equipment and software acquisitions in 2025. End-users were roughly three times more likely to believe their E&S acquisitions will increase in 2025 (42%) versus decrease (15%). The most commonly selected verticals among end-users who plan to boost acquisitions were software, computers, office equipment, and communications equipment, reflecting the importance of these verticals to business operations in which hybrid/ remote working arrangements, online sales channels, and incorporating AI and other new technology tools are critical. Importantly, more than threefourths of end-users expect to use a financing method to cover at least a portion of the cost to acquire this equipment.
Emerging industry growth drivers. Tracking emerging trends in the equipment finance industry, the Foundation’s 2024 survey finds that currently, 42% of E&S end-users use generative AI in their businesses, and an additional 42% indicated that they intend to do so over the next two years. Regarding EaaS, half of end-users already use a subscription-based model for equipment and an additional 23% indicated that they intend to pursue this option in 2025. Meanwhile, nearly one-third of E&S was acquired to support energy-related, climate-related, or other environmental goals and pledges in 2023. With global climate finance expected to grow to $9 trillion by 2030, this is likely to be a key area of growth for the industry in the years ahead.
Top methods of payment to acquire equipment and software. According to the survey, the most important payment method used by businesses to acquire equipment and software in 2023
was leasing (26% of total acquisitions), followed by secured loans (16%), lines of credit (14%), and unsecured loans (8%). Among non-financed acquisitions, paid-in-full credit card purchases were the most prevalent payment method (20%) followed by cash (16%).
Top reasons for financing. The top reasons end-users chose to finance their E&S acquisitions were “optimization of cash flow” (62%), “protection from equipment obsolescence” (55%), and “tax advantages” (51%).
Zack Marsh, Chair of the Equipment Leasing & Finance Foundation and SVP, Accounting and Analysis, AP Equipment Financing, said, “The Horizon report offers a detailed look at equipment acquisition and financing decisions for specific equipment verticals and industries, the key factors influencing the decision to use financing, and how financing decisions are likely to evolve over the next year. Looking ahead, both the report enduser survey and the overall economy provide reason to be optimistic about the industry’s prospects in 2025. Equipment finance industry executives can use the report information to better position their businesses for faster growth.”
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Rivian secures batteries from LG Energy Solution in Arizona
Batteries manufactured at LG Energy Solution’s $5.5 billion plant in Arizona will supply Rivian’s electric vehicles in the U.S., the South Korean company announced.
LG Energy Solution Arizona signed an agreement with California-based Rivian Automotive Inc. to provide its advanced 4695 cylindrical batteries over five years, totaling 67 gigawatt hours.
Those batteries will be produced at LGES’ standalone plant in Queen Creek and shipped to Rivian’s growing manufacturing plant in Normal, Illinois, to power its R2 model for the North American market.
The 4695 batteries will feature a diameter of 46 millimeters and a height of 95 millimeters, which allows for higher energy density, improved space efficiency and enhanced safety, LGES said in its announcement.
The first LG manufacturing plant in Arizona is under construction and is expected to be completed by the end of 2025, with production starting in 2026 for its cylindrical batteries for electric vehicles.
Earlier this year, LGES announced it was pressing pause on its plans for
a second plant in Queen Creek as it focuses on bringing its first facility online here. The second factory will produce batteries for energy storage systems.
LGES said the agreement with Rivian will further strengthen the company’s presence in the U.S. market and its plans to develop and supply “competitive battery cells in a timely manner while expanding into new markets.”
Rivian announced this year that it will receive $827 million in incentives from the state of Illinois to expand its manufacturing plant in the state. It planned to shift initial production of its R2 model to Illinois instead of Georgia.
After production of the R2 model kicks off in Illinois in 2026, Rivian expects to resume construction of its proposed $5 billion factory in Georgia. Before it picked Georgia for its second plant, Arizona was a finalist for that major project.
Rivian has expanded its presence in Arizona in other ways. The company earlier this year applied for a use permit for a vehicles sales and service center in Tempe, adding to its existing
service center in the Deer Valley area. By Audrey Jensen – Phoenix Business Journal
Partnership helps SpaceNukes support missions to the moon, Mars
Los Alamos-based Space Nuclear Power Corporation, also known as “SpaceNukes,” is teaming up with Ad Astra Rocket Company based in Houston, Texas, to advance technology to support missions to Mars and beyond.
The two companies have signed a memorandum of understanding to advance high-power Nuclear Electric Propulsion technology for fast and reliable missions, both human and robotic.
“We think nuclear power in space is really essential for humanity to not only explore, but to live and thrive in space. … And we’re the first to market with a product that can do that,” said David Poston, Ph.D., chief technology officer and one of the four regional founders of SpaceNukes.
This partnership bridges the two companies’ technologies and expertise: Ad Astra’s two-decade experience around the Variable Specific Impulse Magnetoplasma Rocket, a high-power electric rocket engine that provides primary propulsion for a variety of missions; and SpaceNukes’ Kilopower reactor technology, which has been developed over the past 10 years under the NASA/
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SpaceNukes is a business that can provide electricity to any user in space, whether that is on the surface of Mars or powering instruments to look at Jupiter or electric thrusters, according to Poston.“And that’s what nuclear electric propulsion is: It uses a nuclear reactor to create electricity, which is our job, and then Ad Astra takes that electricity and turns it into a rocket or propulsion,” he added.
Poston explained SpaceNukes was formed after the development of kilopower reactor technology at Los Alamos National Laboratory in partnership with NASA and the National Nuclear Security Administration.
Kilopower reactor technology is “a small, lightweight nuclear fission power system that can generate up to 10 kilowatts of electrical power,” according to NASA’s website.
SpaceNukes has a license, owns patents and pays Los Alamos a licensing fee. The company currently employs 18 people, according to Poston. By Molly Callaghan – Albuquerque Business First
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plus-fixed-fee contract for nonpersonal services for tropics test support services. Bids were solicited via the internet with one received. Work will be performed in Panama City, Panama, with an estimated completion date of Nov. 21, 2024. Fiscal 2025 research, development, test and evaluation, Army funds were obligated at the time of the award. U.S. Army 418th Contracting Support Brigade, Yuma Proving Ground, Arizona, is the contracting activity (W9124R25-C-0001).
Department of Defense (DoD) Contracts
Raytheon Co., Tucson, Arizona, is awarded a $9,498,070 cost only value increase modification (P00003) to a previously awarded cost-plus-fixed-fee, indefinite-delivery, indefinite-quantity contract (N6893623D0042). This modification increases the contract ceiling to provide design, development, studies and demonstrations in support of developing and applying new technology to missile and weapons systems for the Navy. Work will be performed in Tucson, Arizona, and expected to be completed by July 2028. No funds will be obligated at the time of award; funds will be obligated on individual orders as they are issued. Naval Air Warfare Center Weapons Division, China Lake, California, is the contracting activity.
Northrop Grumman Launch Vehicles, Chandler, Arizona, was awarded a $9,002,546 modification (P00007) to cost-plus-fixed-fee contract HR001122C0176 for a Defense Advanced Research Projects Agency (DARPA) project. The modification brings the total cumulative value of the contract from $36,718,987 to $45,721,533. Work will be performed in Chandler, Arizona (32%); Buffalo, New York (19%); Huntsville, Alabama (18%); Simsbury, Connecticut (12%); San Antonio, Texas (4%); Towanda, Pennsylvania (3%); and miscellaneous locations (13%), with an expected completion date of January 2026. Fiscal 2024 and 2025 research, development, test and engineering funds in the amount of $7,502,571 were obligated at time of award. This contract stems from a competitive acquisition for which three proposals were received in response to Broad Agency Announcement No. HR001122S0001. DARPA, Arlington, Virginia, is the contracting activity. (Awarded Nov. 20, 2024)
TRAX International Corp., Las Vegas, Nevada, was awarded a $10,235,596 cost-
Raytheon Co., Tucson, Arizona, is awarded a $439,075,000 firm-fixed-price modification to previously awarded contract (N00024-24-C-5408) to exercise options for fiscal 2025 Evolved Seasparrow Missile Block II Guided Missile Assemblies. Work will be performed in Tucson, Arizona (12%); Edinburgh, Australia (11%); Mississauga, Canada (10%); San Jose, California (9%); Raufoss, Norway (9%); Hengelo OV, Netherlands (5%); Ottobrunn, Denmark (5%); Cambridge, Canada (4%); Nashua, New Hampshire (4%); Koropi Attica, Greece (2%); Lystrup, Denmark (2%); Ankara, Turkey (2%); Andover, Massachusetts (2%); Torrance, California (2%); West Lake Village, California (2%); Grenaa, Denmark (2%); Eight Mile Plains Brisbane, Australia (2%); Canton, New York (2%); Camden, and various other locations each less than 1% (10%). The Naval Sea Systems Command, Washington, D.C., is the contracting activity.
Northrop Grumman Systems Corp., Chandler, Arizona, is being awarded five, oneyear, firm-fixed-price options under the active Research & Development (R&D) Prototype Other Transaction Authority (OTA) Agreement (HQ0851-22-9-0002) with a value of $540,919,491. This is an increase in dollar value of the current agreement from
$291,859,066 to $832,778,557.
The R&D OTA Agreement was competitively awarded through The Missile Defense Agency’s (MDA) authority under 10 U.S. Code4022(a)(2)(B). This effort is in accordance with MDA Press Release: 24-NEWS-0009 for Northrop Grumman to continue performance under their existing OTA agreement. Under this award, the performer will further develop and define its Glide Phase Interceptor design concept. The work will be performed in Chandler, Arizona, with an estimated completion date of November 2029. MDA, Dahlgren, Virginia, is the contracting activity.
KT Consulting Inc., Phoenix, Arizona, has been awarded a $12,534,132 modification (P00017) to a previously awarded contract (FA4890-23-F-0005) for F-15E, F-16, and F-22A contract aircrew training and courseware development. The modification brings the total cumulative face value of the contract to $36,793,522 from $24,259,390. Work will be performed at Langley Air Force Base, Virginia; Mountain Home AFB, Idaho; Shaw AFB, South Carolina; and Seymour Johnson AFB, North Carolina, and is expected to be completed by Dec. 31, 2025. Fiscal 2025 operation and maintenance funds in the amount of $10,488,154 are being obligated at time of award. The Air Combat Command, Acquisition Management and Integration Center, Langley AFB, Virginia, is the contracting activity.
Applied Research Associates, Albuquerque, New Mexico, was awarded a $13,824,777 costplus-fixed-fee contract for radar modeling effort. This contract provides for further development of modeling software for the design-build-test-deploy cycle of multispectral assets. Work will be performed in Cypress, California, and is expected to be
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complete by May 11, 2026. This contract was a sole source acquisition. Fiscal 2024 research, development, test and evaluation funds in the amount of $9,730,808 are being obligated at the time of award. The Air Force Material Command Integration Development Office, Wright Patterson Air Force Base, Ohio, is the contracting activity (FA2201-25-C-0002).
Raytheon Co., Tucson, Arizona, is awarded a not-to exceed $401,199,552 firm-fixedprice undefinitized contract for the procurement of 131 full rate production Block V Tactical Tomahawk All Up Rounds missiles to include 26 for the Army, 16 for the Marine Corps, 11 for the Commonwealth of Australia, and 78 for the government of Japan. Work will be performed in Tucson, Arizona (23.74%); Pontiac, Michigan (14.73%); East Camden, Arkansas (11.18%); Huntsville, Alabama (8.02%); Clearwater, Florida (3.98%); Anniston, Alabama (3.78%); Spanish Fork, Utah (3.76%); Berryville, Arkansas (3.27%); Glenrothes Fife, Great Britain (3.17%); El Segundo, California (2.75%); Dublin, Georgia (2.48%); Middletown, Connecticut (2.15%); Vergennes, Vermont (1.73%); Midland, Ontario, Canada (1.71%); Blaine, Minnesota (1.29%); Phoenix, Arizona (1.07%); Boulder, Colorado (1.03%); and various locations withing the Continental US (10.16%).
ALL THE METAL YOU NEED UNDER ONE ROOF
Five Ways Manufacturers Can Prepare Now for a Changing Tariff Landscape
Trade policy promises to be high on President-elect Donald J. Trump’s list of things to do when he enters office early next year. Tariffs, most notably aimed at China, were a key talking point during his campaign and an issue with potentially huge consequences for manufacturers.
That said, many unknowns remain: What kinds of tariffs? When? What products will be targeted? Will China be the only country under a microscope?
Despite the many unknowns, manufacturers can do some prep work now to react more swiftly and smartly once the tariff landscape becomes clearer.
Here are a few of the suggestions offered by Jeremy Tancredi, partner in West Monroe’s supply chain practice; Dan Swartz, international tax services principal, Crowe; and Gregory Husisian, partner at Foley & Lardner LLP, during IndustryWeek’s latest Production Pulse. Watch the full presentation for greater detail on these takeaways
and additional suggestions.
Thoroughly review your supply base. While such advice may seem self-evident with Tier 1 suppliers, it extends to Tier 2 and Tier 3 suppliers as well. “Any tariffs that impact those suppliers are going to filter back to the end manufacturer consumer,” explains Tancredi.
Risk planning starts with China and Mexico. Husisian advises manufacturers to pull their ACE data from the U.S. Customs and Border Protection portal to gain a good understanding of tariff risk and exposure, “particularly with regard to China and Mexico.” While he cites China for obvious reasons, Mexico should also be at the top of risk planning because USMCA is up for reapproval in 2026. “That makes [Mexico] a potential source of higher tariffs even if it’s as part of a threat to achieve other goals, such as on immigration,” Husisian says.
Find out who your customs broker or bond broker is. It’s going to be one of the most important relationships you have, says Crowe’s Swartz. As tariffs increase, “your bond limit is going to have to follow. And as the bond limit climbs higher, the underwriters of the bond are now going to pay more scrutiny to your company. They’re going to be wanting to look at audited financial statements and, in many cases, they’re going to require that you put up collateral in the form of letter of credit.”
Don’t overreact by purchasing mass quantities of materials to get ahead of tariffs. Not only is it disruptive to your supply chain, but an overabundance of materials can lead to storage issues, production issues and a lot of excess inventory, which can be very costly. Moreover, such activity is already starting to drive up transportation costs,
notes Tancredi.“Any savings you could see getting ahead of some of these tariffs, you could be offsetting those by higher transportation costs,” he says.
Be wary of too-good-to-be-true promises. “If you see companies advertising that they can take your cargo through an intermediate country and slap a ‘made in Malaysia’ sticker on it when it’s actually produced in China … not a good route to go,” Swartz says.
By: Jill Jusko
ISM Report:
Manufacturing PMI Contracts at Slower Rate
in November
Registering 48.4%, the ISM (Institute for Supply Management)
Manufacturing PMI increased by 1.9 points in November, indicating contraction at a slower rate compared to October. This is the eighth consecutive month of contraction after expanding in March earlier this year.
“Of the five subindexes that directly factor into the Manufacturing PMI, only one (new orders) was in expansion territory, the same number of indexes as in October,” says Timothy Fiore, chair of the ISM’s manufacturing business survey committee.
After seven months of contraction, the new orders index entered expansion territory last month with a reading of 50.4%.
The production and employment indexes contracted at a slower rate, registering increases of 0.6 points and 3.7 points, respectively.
Three industries reported growth in November:
• Food, beverage & tobacco products
• Computer & electronic products
• Electrical equipment, appliances & components
“Two of the six largest manufacturing industries — food, beverage & tobacco products and computer & electronic products — expanded in November, the same number of industries as in October,” says Fiore.
Several survey respondents comment on how the presidential election outcome will impact trade policies.
“After the election, we have seen an uptick in customers wanting to come back to the U.S. for making their products,” writes a respondent in the primary metals industry.
“Late to the game, we are now working on our buying plan in light of potential increased tariffs on imports from China. Cost and capacity of U.S. manufacturing is a concern; a lack of relationship with alternate low-cost international manufacturers is another,” reports an executive in miscellaneous manufacturing.
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Semiconductor supplier opens manufacturing facility in Mesa
A Tokyo-based semiconductor supplier has opened its new manufacturing plant in Mesa, where it plans to begin full-scale production in 2025.
JX Advanced Metals USA Inc. — a subsidiary of JX Advanced Metals Corp. — celebrated the opening of its 273,000-square-foot plant on a 65-acre site near the northeast corner of Germann and Crismon roads.
JX Advanced Metals USA will produce “sputtering targets” for semiconductor industry customers in the U.S. and Europe. Sputtering targets are metal or alloy disks used to create thin films on semiconductors. The company has started test production at the new facility in preparation for full production ramp up next year.
The company’s Mesa plant consists of advanced technology production areas, collaborative office spaces, a fitness center, a garden area for employees, solar panel covered parking and electric vehicle charging
stations.
JX Advanced Metals’ plant will more than double the production capacity of the company’s previous facility at 125 N. Price Road in Chandler, where it had conducted business operations for more than 30 years.
“Today’s opening marks an exciting milestone for JX Advanced Metals USA Inc. as we extend our commitment to Mesa and the advanced materials industry,” Takeshi Suwabe, executive officer and general manager, thin film materials Division of JX Advanced Metals Corp., said in a statement. “Our new Mesa facility will not only drive growth in semiconductor materials production but also serve as the center of JX USA’s business in the advanced materials field in the U.S.”
The company chose Mesa as the home of its manufacturing plant based on Arizona’s business environment, skilled workforce and infrastructure designed to meet demand for a growing semiconductor industry.
JX Advanced Metals USA, Inc. — formerly known as JX Nippon Mining & Metals USA Inc. — broke ground on its Mesa manufacturing plant in October 2022. The groundbreaking came months after the company acquired the 65-acre site for $29 million in April 2022.
JX Advanced Metals USA has more than 125 employees. The company previously announced plans to hire 100 additional workers by 2025, and officials told the Business Journal in 2022 it could develop equally sized phases on its Mesa site in the future, depending upon market demand. By Amy Edelen – Phoenix Business Journal
PRECISION MACHINING
Pacific Swiss & Manufacturing Inc. is celebrating 30 years in business with 20 years of that supporting customers in the Southwest, including Arizona and Nevada. For many years, Greg traveled to Arizona and established relationships with several companies who needed his services. These companies included Tier 1 businesses in the medical, defense, aerospace, contract manufacturing, and other quality conscious industries.
Business in the Southwest, particularly in Arizona, has grown so much over the past 20 years that Greg recognized that Pacific Swiss and our customers would benefit from local sales & technical representation.
Back in 2016, Greg researched different options for supporting local Southwest customers. “After months of vetting multiple agencies, we selected Gleason Sales Company to partner with. Gleason Sales Company is a professional sales agency based in Scottsdale, Arizona. They have been in business since 1969, and their sales team specializes in providing manufacturing solutions to the Commercial, Medical, Aerospace & Defense industry.” He continued, “We are especially thankful that we were able to secure Marc Gleason (pictured above), son of the founder Larry Gleason, to be our sales representative. Marc has such a great relationship with customers in our industries throughout Arizona and he has been invaluable to our existing and new clients.”
Marc says, “We are only as good as the suppliers we represent, and in our company, we thoroughly vet our suppliers before bringing them on. Since we have been representing Pacific Swiss & Manufacturing over the past nine years, they have been a bestin-class supplier for Gleason Sales. Not only do they have an outstanding attitude and deliver superior products on time, but they always go ‘above and beyond’ in supporting our customers.” As suppliers that Gleason Sales Company represents, Pacific Swiss & Manufacturing is one of our top performing partners.”
Pacific Swiss & Manufacturing is extremely specialized. The ISO certified, ITAR registered entity offers the specialized combination of CNC Swiss Turning and CNC Swiss Micro/Miniature Machining.
Part sizes typically machined are from .010” diameter to 1-1/4” diameter with 10-axis of machining capability. Greg says, “The benefit of a 10-axis machine is that it allows Pacific Swiss the ability to produce simple to extremely complex parts in one machining operation, in which the part comes out of the machine virtually burr-free. There is less chance, therefore, that a part is damaged in a secondary operation. The Swiss machining eliminates any secondary operations and gets the product to our customer faster, thus reducing their time to market.”
The company purchases exclusively the Citizen brand of CNC Swiss machines. Greg says, “The Citizen brand is outstanding, we have 11 today. Our older machines are just as reliable today as they were the day they were installed. We are constantly adding new machine models with enhanced machining capability. Our newest is a Citizen L20X with 10-axis of machining capability that offers 1” diameter capacity.” He adds, “All of our machines
have magazine style bar loaders, enabling us to run 24x7 lights out.”
Greg and Marc take a very disciplined approach to growing business and building longterm relationships. They recognize the importance of controlled growth, providing superior support to their loyal, long-term customers, while at the same time, being able to fully support new customers. The quality and delivery that Pacific Swiss provides even brings many Swiss Screw shops, in essence, their competitors, to them. “They use us not just for overflow but also when their project is particularly complex or when our machines are better suited”. Greg adds,” I would say that this says something about our competency level. At Pacific Swiss, we are patient. Since our business is relationship driven, we know that we must earn the trust of new customers. We are perfectly satisfied to be positioned as #2. Then when we are called upon, we can assist and help remedy the customer’s situation, gain their trust and then re-position ourselves as primary supplier.
Additionally, Marc says, “When we onboard a customer, we keep in constant communication and manage their growth. This allows us to maintain a high retention rate. Customers know they can count on us”.
Pacific Swiss & Manufacturing specializes in custom machined parts ranging in sizes between .010” and 1-1/4” in diameter. Greg says, “The size of our parts (with low shipment costs) enables us to manufacture them for customers not just throughout the United States, but also throughout the world. Though our customer base is well established in the Southwest/ Western USA, we support customers throughout the USA. In addition, we ship to our international customers located in China, Costa Rica, Thailand, Malaysia, Mexico and England”.
Pacific Swiss offers dock-to-stock quality and managed inventory systems. Customers can order large quantities and have deliveries set forth by scheduled P/O dates, on-demand, or KANBAN “pull-in”. We achieve short lead times by “running lean”, this entails running “lights-out” and consolidating like-sized materials and parts. Every day, we make parts with tolerances of plus or minus .0025 inch and surface finishes of 8.”
Great businesses have low turnover, both in their key employees and in their customers. At Pacific Swiss & Manufacturing, there is a collective 125+ years of employee experience in the industry.
Here’s What People Are Saying About Pacific Swiss in 2024
We have been impressed with Pacific Swiss’ ability to consistently meet our requirements in quality, cost, and delivery. Their expertise in CNC Swiss turning and micro machining is evident in the precision of their work. What stands out most is their exceptional communication. They are always proactive, responsive, and ensure we are fully informed throughout the
process, making them a trusted and reliable partner.
-A Procurement Specialist – Aerospace Industry
“Over the past 16 years, Pacific Swiss & Mfg., Inc. has proven to be an exceptional partner, consistently exceeding expectations across the board. Greg and his team have a proactive approach and commitment to our success that elevates them beyond the role of a mere supplier, transforming them into a strategic ally. Whether it’s meeting tight deadlines, challenging projects or innovating solutions, Pacific Swiss demonstrates unwavering dedication and expertise, making them an invaluable asset to our operations and have contributed significantly to our own success.
Their trustworthiness, responsiveness, and commitment to excellence makes Pacific Swiss & Mfg., Inc. ideal partner.”
-A Sales Manager – Medical Manufacturer
Our Purchasing and Supplier Quality Team had the pleasure to visit the Pacific Swiss & Manufacturing site in Oregon earlier this year (2024). It was a great way to kick off the increase of business that was awarded to Pacific Swiss & Manufacturing. We were impressed with the team prior to our visit and the meeting of the team was icing on the cake. All members that we met were very knowledgeable and thorough with their respective processes.
The Operations Manager, Greg Cde Baca has been great to work with. If an issue or concern is brought up by our team, he and his team are very quick to jump on this and make any corrections needed to remedy it. This is regarding anything from quality, packaging, delivery, etc..
As a supplier quality engineer, it has been refreshing to work with Pacific Swiss and Manufacturing because of their responsiveness to the work at hand.
-A Supplier Quality Engineer (SQE) –Defense Industry
For more information on how to get the best Swiss machining contact Greg Cde Baca at 503-557-9407, greg@pacificswissmfg. com or Marc Gleason at 602-721-6187, Marcgleason@gleasonsales.com.
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Ecosystem of new ASU and Deca Technologies selected to lead $100M SHIELD
The National Institute of Standards and Technology — part of the U.S. Department of Commerce — announced today that it plans to award as much as $100 million to Arizona State University and Deca Technologies for the SHIELD USA initiative.
The project will drive innovation in the domestic microchip packaging ecosystem, expand capacity for domestic advanced packaging and help regain U.S. leadership in microelectronics while strengthening national security.
It is the first of several research and development programs to be launched by the CHIPS National Advanced Packaging Manufacturing Program (NAPMP). This first program, focused on organic materials and substrates, will be a vital part of the broader $11 billion CHIPS R&D program administered by the U.S. Department of Commerce.
“This is a critical step for U.S. semiconductor independence, and it is the area of expertise in which we are in direct competition with China to determine who will unlock the future of innovation in semiconductor chip manufacturing,” ASU President Michael Crow said. “ASU is well prepared with a dynamic partner in Deca Technologies, and we are eager to lead the work that will enable SHIELD USA to play a pivotal role in ensuring the country’s technological and economic future.”
The SHIELD USA (Substrate-based Heterogeneous Integration Enabling Leadership Demonstration for the USA) team is led by ASU’s Jason Conrad, SHIELD USA program director and chief operating officer of the Southwest Advanced Prototyping Hub; and Craig Bishop, chief technology officer of Deca Technologies. It will design and develop molded core substrates that enable leap-ahead performance in organic substrate-based microelectronics packages.
Advanced substrates are physical platforms that allow multiple semiconductor chips to be assembled seamlessly together, enable high-bandwidth communication between those chips, efficiently deliver power and dissipate unwanted heat. The advanced packaging enabled by advanced substrates translates to high-performance computing for artificial intelligence, next-generation wireless communication and more efficient power electronics.
SHIELD USA will focus on developing the domestic advanced packaging ecosystem — working with core partners to deliver process demonstrators — and enabling industry research, testing and qualification of new materials, processes, equipment and designs.
materials and training programs for underserved communities, with a focus on upskilling and reskilling workers in semiconductor technology.
Support U.S. leadership in semiconductor packaging: By building a sustainable, domestic advanced packaging infrastructure, SHIELD USA will secure the long-term viability of the U.S. semiconductor supply chain and ensure its ability to meet growing global demand.
Continued from page 48 Its primary focus is in four areas:
Accelerate R&D and commercial deployment: SHIELD USA will drive the development of next-generation materials and substrates, accelerating the innovation cycle with a focus on a proven technology transfer and licensing model to enhance U.S. manufacturing capabilities.
Strengthen domestic supply chains: By developing and scaling proven processes, materials and equipment, SHIELD USA will create a robust foundation for high-volume U.S. semiconductor packaging production, thereby enhancing national security and economic resilience.
Expand workforce and research capacity: ASU’s expertise in workforce development will be leveraged to provide new educational resources, including tailored course
Microelectronics packaging is heavily concentrated in Asia, costing the United States its technological leadership and posing significant risks to national security and supply chain resilience. Even as leading-edge semiconductor foundries have returned to the U.S., packaging remains based in Asia. SHIELD USA’s impact on advanced packaging technologies will enable the reshoring of packaging to reestablish the domestic supply chain.
“To bring substrate manufacturing back to the U.S., we need to change the game. More than incremental progress, we need 10X breakthroughs,” Deca Technologies’ Bishop said. “This is a fantastic example of a university working in close partnership with industry to drive innovation, and we’re excited to partner so closely with ASU and to collaborate with leading industry players in this effort to reestablish technology leadership.”By Amy Edelen –Phoenix Business Journal
Interest Rate Cuts Could Lead to Increased Capital Investment as Capacity Constraints Grow levels
“Demand for manufacturing technology has remained well above historical averages despite
steadily declining from their peaks in 2021,” said Christopher Chidzik, principal economist of AMT - The Association for Manufacturing Technology. “This demand has been supported by exceptional growth in demand for durable goods from consumers and increased government expenditures. Reducing rates to keep downside risks of the labor market at bay could extend this elevated consumer demand into 2025 and necessitate further investment in capital equipment as capacity constraints grow.”
Intel Leaders Say Breaking Up Company Is A Possibility, Reports Say
Could Intel be broken up? The chipmaker’s new co-CEOs said it is possible.
According to multiple media reports, Michelle Johnston Holthaus and David Zinsner acknowledged that selling Intel’s chipmaking was a possibility.
Reuters reported that Zinsner said it is “an open question” whether the manufacturing unit could be sold as Intel navigates an uncertain future.
Holthaus and Zinsner were speaking at a Barclays investment banking conference in San Francisco. They were tapped to lead the company last week following the abrupt retirement of CEO Pat Gelsinger.
Gelsinger built up Intel’s manufacturing capabilities in his ambitious plan to compete with rival semiconductor companies Nvidia and TSMC. But several quarters of major losses led to his early departure
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from the company and questions about the company’s future.
Although Intel is headquartered in California, the company employs more than 12,000 workers at its Ocotillo campus, which is undergoing a $32 billion expansion in Chandler.
According to Reuters, Zinsner and Holthaus noted that Intel Foundry, its manufacturing arm, already runs separately from its design business.
“Does it ever fully separate? That’s an open question for another day,” Zinsner said.
Holthaus also pondered whether it made sense to further separate the two units.
“Pragmatically, do I think it makes sense that they’re completely separated and there’s no tie?” she said, as reported by Reuters. “I don’t think so. But someone will decide that.”
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New Tech Company Wants To Complete Arizona’s Semiconductor Ecosystem
Arizona-based Hyperion Technologies Inc. wants to fill a gap in the nation’s emerging semiconductor ecosystem.
The fledgling company has proposed a leadingedge, fully automated manufacturing plant in the Phoenix metro totaling about 600,000 square feet. The first phase of the project, likely earmarked for the West Valley, represents a $1.5 billion investment, adding to a swell of semiconductor facilities popping up throughout the region.
That facility is expected to create 1,500 direct jobs and domesticate production of advanced, high-density interconnect substrates and interconnect fabrics — “devices that are responsible for operating” semiconductor chips, said Sam Salama, CEO of Hyperion.
“If you imagine chips as pieces of Legos and you have a platform, you take these Legos and put them together to constitute the modern computing systems that are
needed for AI or high-performance computing,” Salama said.
Advanced substrates are largely procured from Asian countries such as Japan, which currently produce most of these devices. “The entity to fabricate this does not exist in the United States, we are truly first of a kind,” Salama said.
Leveraging its extensive experience in the industry and its major technology partners, Hyperion expects to be the only company in the U.S. to produce these devices at scale as it grows, potentially competing on a global stage in a $600 billion industry that’s dominated by major corporations. Hyperion Technologies Inc. Renderingexpand
Hyperion wants to establish a manufacturing plant in Arizona for the production of advanced substrates.
Hyperion is collaborating with local municipalities, the Arizona Commerce Authority and Greater Phoenix Economic Council on its project. The ACA said it continues to work closely with Hyperion on its “significant expansion project in Arizona.”
“This project represents an important addition to Arizona’s and the U.S. semiconductor supply chain and will further Arizona’s leadership in advanced packaging,” the ACA said in a statement. “We appreciate Hyperion’s commitment to Arizona.”
Hyperion has completed the design for its manufacturing building and is finalizing the factory layout. To fund the project, Salama said they have secured multiple global equity partners and are pursuing debt, along with federal and local incentives. They expect to break ground as early as 2025. It’s also in the process of selecting a site within the Phoenix region for the facility, which will likely
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be built in the northwest part of the Valley, near Amkor Technology Inc.’s proposed packaging plant in Peoria and Taiwan Semiconductor Manufacturing Co.’s $65 billion manufacturing complex in Phoenix.
Those semiconductor projects have already attracted dozens of suppliers and spurred plans for mega developments such as the $7 billion Halo Vista surrounding TSMC and a regional airpark in Peoria. The federal government has also awarded at least $15 billion to semiconductor companies and programs in Arizona for the on-shoring of semiconductor manufacturing.
The type of substrates that Hyperion manufactures will be targeted at the growing demand for highperformance computing, which processes large amounts of data at high speeds.
Hyperion’s substrates will be used to stitch together smaller integrated
circuits, called chiplets, to create more powerful devices for uses in artificial intelligence and data centers, a fast-growing sector in Arizona.
“The computing power that is required to run an AI model, whether it’s for training or inference, is actually doubling now every sixth months, and one chip is not able to do that,” Salama said.
Their substrates will support high-performance computing uses in other major industries including aerospace and defense, automotive and networking and telecommunications for products like network switches or central processing units.
Tempe-based Amkor is also establishing a critical semiconductor component with its new factory in Arizona that is set to become the largest outsourced U.S. packaging plant and produce chips for TSMC and Apple Inc.
The Hyperion team embarked on a detailed site selection process before choosing Arizona for its project. They started their search in 2022 and considered a handful of states that are attracting semiconductors such as New York and Texas. The Grand Canyon state’s proximity to the West Coast and the San Francisco Bay Area — where the company’s potential customers are located — and its regional access in the Southwest were attractive to Hyperion.
Arizona also stood out because of its longstanding semiconductor infrastructure, as well as a growing collection of businesses here. An estimated 40 semiconductor companies have expanded in Arizona since 2020.
“There is a coherent focus in building the semiconductor ecosystem,” Salama said. “If you look at the entire nation today, the only place that is very close to having an end-to-end cluster is Arizona.”By Audrey
Jensen
– Reporter, Phoenix
MASIC Industries, an ISO9001: 2015 certified coating application job shop, offers Certified Cerakote application, Physical Vapor Deposition (PVD), and Diamond Like Carbon coating (DLC).
MASIC Industries, an ISO9001: 2015 certified coating application job shop, offers Certified Cerakote application, Physical Vapor Deposition (PVD), and Diamond Like Carbon coating (DLC).
MASIC Industries, an ISO9001: 2015 certified coating application job shop, offers Certified Cerakote application, Physical Vapor Deposition (PVD), and Diamond Like Carbon coating (DLC).
made integral to it, including treating your employees well and for our customers, ‘Doing what we commit to do.” He adds, “We also wanted to take the business to the next level, and this meant looking at every aspect of the business and surveying customers to find ways to continuously improve.”
MASIC Industries, an ISO9001: 2015 certified coating application job shop, offers Certified Cerakote application, Physical Vapor Deposition (PVD), and Diamond Like Carbon coating (DLC).
including treating your employees well and for our customers, ‘Doing what we commit to do.” He adds, “We also wanted to take the business to the next level, and this meant looking at every aspect of the business and surveying customers to find ways to continuously improve.”
MASIC
MASIC strives to separate themselves from the competition with Quality, Reliability and customer commitment. Case-inpoint, MASIC conducts special process testing for all ceramic and Powder coat films to ensure the customers product looks good, and also meets the coating properties by performing special process destructive tests on test coupons that accompany each job. MASIC believes they are one of the few thin film applicators that tests to this degree in all of theWestern USA. MASIC offers production-capable Cerakote coating, and they have been an approved Cerakote applicator for the past decade. Cerakote is a polymer-ceramic composite that’s designed to improve a material’s Abrasion and wear resistance, Corrosion resistance, Chemical resistance, Impact strength, and Hardness. Cerakote can be applied to a variety of materials, including metals, plastics, polymers, and wood.
MASIC strives to separate themselves from the competition with Quality, Reliability and customer commitment. Case-inpoint, MASIC conducts special process testing for all ceramic and Powder coat films to ensure the customers product looks good, and also meets the coating properties by performing special process destructive tests on test coupons that accompany each job. MASIC believes they are one of the few thin film applicators that tests to this degree in all of theWestern USA. MASIC offers production-capable Cerakote coating, and they have been an approved Cerakote applicator for the past decade. Cerakote is a polymer-ceramic composite that’s designed to improve a material’s Abrasion and wear resistance, Corrosion resistance, Chemical resistance, Impact strength, and Hardness. Cerakote can be applied to a variety of materials, including metals, plastics, polymers, and wood.
MASIC specializes in Thin Film Ceramics and created their own robot cell for the application of this process to accompany their 6 manual spray stations.They can do any thin film ceramic like Cerakote, along with other emerging thin films that are available. Masic has scaled their Cerakote to a high level, high production processing 5000 knife blades a week to greater than 100K individual parts per month. These parts range from as large as an arm to small parts.
run the company with partner Butch Mason, a Navy Veteran. They have over 100 years combined experience in finishing and thin film applications. Chris’ two sons and Butch’s two sons are the newest family members participating in the business.
During Covid, the company had zero employee absences, and in fact, they found themselves venturing into a new and emerging market – low Earth orbit (LEO) satellite components. Chris says, “We had no idea that the space and satellite industry was so extensive, but we were fortunate to participate in several projects, which helped expand our business.”
made integral to it, including treating your employees well and for our customers, ‘Doing what we commit to do.” He adds, “We also wanted to take the business to the next level, and this meant looking at every aspect of the business and surveying customers to find ways to continuously improve.”
strives to separate themselves from the competition with quality, reliability and customer commitment. Case in point, MASIC conducts special process testing for all ceramic and Powder coat films to ensure the customers product looks good and also meets the coating properties by performing special process destructive tests on test coupons that accompany each job. MASIC believes they are one of the few thin film applicators that tests to this degree in all of the Western USA. MASIC offers production-capable Cerakote coating, and they have been an approved Cerakote applicator for the past decade. Cerakote is a polymerceramic composite that’s designed to improve a material’s abrasion and wear resistance, corrosion resistance, chemical resistance, impact strength, and hardness. Cerakote can be applied to a variety of materials, including metals, plastics, polymers, and wood.
During Covid, the company had zero employee absences, and in fact, they found themselves venturing into a new and emerging market – low Earth orbit (LEO) satellite components. Chris says, “We had no idea that the space and satellite industry was so extensive, but we were fortunate to participate in several projects, which helped expand our business.”
Last year, the company successfully certified to ISO9001: 2015, with the help of its Quality Director, Dean Brito. Chris says, “Dean was a ‘difficult’ customer of ours more than 15 years ago, and he pointed out how our quality manual was not up to ‘quality standards.’While this was unpleasant to hear, Dean was right, and we hired him in 2023 to make a world-class Quality Management System for us.”
MASIC strives to separate themselves from the competition with Quality, Reliability and customer commitment. Case-inpoint, MASIC conducts special process testing for all ceramic and Powder coat films to ensure the customers product looks good, and also meets the coating properties by performing special process destructive tests on test coupons that accompany each job. MASIC believes they are one of the few thin film applicators that tests to this degree in all of theWestern USA. MASIC offers production-capable Cerakote coating, and they have been an approved Cerakote applicator for the past decade. Cerakote is a polymer-ceramic composite that’s designed to improve a material’s Abrasion and wear resistance, Corrosion resistance, Chemical resistance, Impact strength, and Hardness. Cerakote can be applied to a variety of materials, including metals, plastics, polymers, and wood.
Chris says, “When Matt, Butch, and I took over the business, we wanted to retain many of the best attributes our parents, uncles, and grandfather had made integral to it, including treating your employees well and for our customers, ‘Doing what we commit to do’.” He adds, “We also wanted to take the business to the next level, and this meant looking at every aspect of the business and surveying customers to find ways to continuously improve.”
Last year, the company successfully certified to ISO9001: 2015, with the help of its Quality Director, Dean Brito. Chris says, “Dean was a ‘difficult’ customer of ours more than 15 years ago, and he pointed out how our quality manual was not up to ‘quality standards.’While this was unpleasant to hear, Dean was right, and we hired him in 2023 to make a world-class Quality Management System for us.”
During Covid, the company had zero employee absences, and in fact, they found themselves venturing into a new and emerging market – low Earth orbit (LEO) satellite components. Chris says, “We had no idea that the space and satellite industry was so extensive, but we were fortunate to participate in several projects, which helped expand our business.”
Recognizing we have a loyal, diverse team, The QMS was strategically translated into three languages - Spanish, English, and Vietnamese and the company passed the ISO 9001 certification audit with zero findings and zero OFI’s in less than a year from deployment to certification. Our first surveillance audit is scheduled for early in 2025, and Chris says, “We have no reservations about passing with flying colors.”
Last year, the company shipped 1.2 million parts, and they had ~2400 customer returns, an impressive 0.2% defect rate. With a Quality and On-Time delivery rate with ‘A’ scores, the company’s best sales force are its customers, who regularly refer others to MASIC Industries for their coating with special processing needs.
During Covid, the company had zero employee absences, and in fact, they found themselves venturing into a new and emerging market –low Earth orbit (LEO) satellite components. Chris says, “We had no idea that the space and satellite industry was so extensive, but we were fortunate to participate in several projects, which helped expand our business.”
Recognizing we have a loyal, diverse team, The QMS was strategically translated into three languages - Spanish, English, and Vietnamese and the company passed the ISO 9001 certification audit with zero findings and zero OFI’s in less than a year from deployment to certification. Our first surveillance audit is scheduled for early in 2025, and Chris says, “We have no reservations about passing with flying colors.”
Last year, the company successfully certified to ISO9001: 2015, with the help of its Quality Director, Dean Brito. Chris says, “Dean was a ‘difficult’ customer of ours more than 15 years ago, and he pointed out how our quality manual was not up to ‘quality standards.’While this was unpleasant to hear, Dean was right, and we hired him in 2023 to make a world-class Quality Management System for us.”
Quality Assurance:
MASIC specializes in Thin Film Ceramics and created their own robot cell for the application of this process to accompany their 6 manual spray stations.They can do any thin film ceramic like Cerakote, along with other emerging thin films that are available. Masic has scaled their Cerakote to a high level, high production processing 5000 knife blades a week to greater than 100K individual parts per month. These parts range from as large as an arm to small parts.
The company is based in a suburb of Portland, Oregon and got its start shortly after WWII when Russ Leininger launched the company as a metal polishing entity. Many of Russ’s family members were integral members of the company, and today Russ’s grandson’s Chris and Matt Sicilia, run the company with partner Butch Mason, a Navy Veteran and they have over 100 years combined experience in finishing and thin film applications. Chris’ 2 sons and Butch’s two sons are the newest family members participating in the business.
Chris says, “When Matt, Butch, and I took over the business, we wanted to retain many of the best attributes our parents, uncles, and grandfather had
Chris says, “We go above and beyond what our customers require in testing, we are a ‘Premium Job Shop’. We are always striving to be ‘Best in Class’. Many of our customers require First Article Inspection, and this is what many in our industry adhere to. At MASIC, we’ve implemented an extremely rigorous quality process for every order.We then maintain comprehensive data for every job, not just first articles.”
Last year, the company shipped 1.2 million parts, and they had ~2400 customer returns, an impressive 0.2% defect rate. With a Quality and On-Time delivery rate with ‘A’ scores, the company’s best sales force are its customers, who regularly refer others to MASIC Industries for their coating with special processing needs.
Last year, the company successfully certified to ISO9001: 2015, with the help of its Quality Director, Dean Brito. Chris says, “Dean was a ‘difficult’ customer of ours more than 15 years ago, and he pointed out how our quality manual was not up to ‘quality standards’. While this was unpleasant to hear, Dean was right, and we hired him in 2023 to make a world-class Quality Management System (QMS) for us.”
Quality Assurance:
Recognizing we have a loyal, diverse team, The QMS was strategically translated into three languages - Spanish, English, and Vietnamese and the company passed the ISO 9001 certification audit with zero findings and zero OFI’s in less than a year from deployment to certification. Our first surveillance audit is scheduled for early in 2025, and Chris says, “We have no reservations about passing with flying colors.”
Extensive Special Process Testing Procedures Include:
• ColorandCosmetic
The company is based in a suburb of Portland, Oregon and got its start shortly after WWII when Russ Leininger launched the company as a metal polishing entity. Many of Russ’s family members were integral members of the company, and today Russ’s grandson’s Chris and Matt Sicilia, run the company with partner Butch Mason, a Navy Veteran and they have over 100 years combined experience in finishing and thin film applications. Chris’ 2 sons and Butch’s two sons are the newest family members participating in the business.
• CoatingThickness
MASIC specializes in Thin Film Ceramics and created their own robot cell for the application of this process to accompany their 6 manual spray stations.They can do any thin film ceramic like Cerakote, along with other emerging thin films that are available. Masic has scaled their Cerakote to a high level, high production processing 5000 knife blades a week to greater than 100K individual parts per month. These parts range from as large as an arm to small parts.
MASIC specializes in Thin Film Ceramics and created their own robot cell for the application of this process to accompany their 6 manual spray stations. They can do any thin film ceramic like Cerakote, along with other emerging thin films that are available. MASIC has scaled their Cerakote to a high level, high production, processing 5000 knife blades a week to greater than 100K individual parts per month. These parts range from as large as an arm to small parts.
Chris says, “We go above and beyond what our customers require in testing, we are a ‘Premium Job Shop’. We are always striving to be ‘Best in Class’. Many of our customers require First Article Inspection, and this is what many in our industry adhere to. At MASIC, we’ve implemented an extremely rigorous quality process for every order. We then maintain comprehensive data for every job, not just first articles.”
• SpecularGloss –a measureofthelightreflected by thesurface of a material.
Last year, the company shipped 1.2 million parts, and they had ~2400 customer returns, an impressive 0.2% defect rate. With a Quality and On-Time delivery rate with ‘A’ scores, the company’s best sales force are its customers, who regularly refer others to MASIC Industries for their coating with special processing needs.
Recognizing they have a loyal, diverse team, the QMS was strategically translated into three languages — Spanish, English, and Vietnamese and the company passed the ISO 9001 certification audit with zero findings and zero OFI’s in less than a year from deployment to certification. Their first surveillance audit is scheduled for early in 2025, and Chris says, “We have no reservations about passing with flying colors.”
Extensive Special Process Testing Procedures Include:
• ColorandCosmetic
• CrosshatchAdhesion – evaluatestheadhesivestrengthof coatings applied to metallic substrates and proves that the cleaning and preparation of the substrate has been properly prepared for coating.
• CoatingThickness
Quality Assurance:
• SpecularGloss –a measureofthelightreflected by thesurface of a material.
Chris says, “When Matt, Butch, and I took over the business, we wanted to retain many of the best attributes our parents, uncles, and grandfather had
Last year, the company shipped 1.2 million parts, and they had ~2400 customer returns, an impressive 0.2% defect rate. With a Quality and On-Time delivery rate with ‘A’ scores, the company’s best sales force is its customers, who regularly refer others to MASIC Industries for their coating with special processing needs.
The company is based in a suburb of Portland, Oregon and got its start shortly after WWII when Russ Leininger launched the company as a metal polishing entity. Many of Russ’s family members were integral members of the company, and today Russ’s grandson’s Chris and Matt Sicilia, run the company with partner Butch Mason, a Navy Veteran and they have over 100 years combined experience in finishing and thin film applications. Chris’ sons and Butch’s two sons are the newest family members participating in the business.
The company is based in a suburb of Portland, Oregon and got its start shortly after WWII when Russ Leininger launched the company as a metal polishing entity. Many of Russ’s family members were integral members of the company, and today his grandson’s Chris and Matt Sicilia
• CrosshatchAdhesion – evaluatestheadhesivestrengthof coatings applied to metallic substrates and proves that the cleaning and preparation of the substrate has been properly prepared for coating.
Quality Assurance:
Chris says, “We go above and beyond what our customers require in testing, we are a ‘Premium Job Shop’. We are always striving to be ‘Best in Class’. Many of our customers require First Article Inspection, and this is what many in our industry adhere to. At MASIC, we’ve implemented an extremely rigorous quality process for every order. We then maintain comprehensive data for every job, not just first articles.”
Chris says, “We go above and beyond what our customers require in testing; we are a ‘Premium Job Shop’. We are always striving to be ‘Best in Class’. Many of our customers require First Article Inspection, and this is what many in our industry adhere to. At MASIC, we’ve implemented an extremely rigorous quality process for every order. We then maintain comprehensive data for every job, not just first articles.”
Chris says, “When Matt, Butch, and I took over the business, we wanted to retain many of the best attributes our parents, uncles, and grandfather had
Extensive Special Process Testing Procedures Include:
• ColorandCosmetic
• CoatingThickness
• SpecularGloss –a measureofthelightreflected by thesurface of a material.
Extensive Special Process Testing Procedures Include: • Color and Cosmetic
• CrosshatchAdhesion – evaluatestheadhesivestrengthof coatings applied to metallic substrates and proves that the cleaning and preparation of the substrate has been properly prepared for coating.
• Coating Thickness
coating to cracking and/or flaking from a metallic substrate.This involves coated and scored sheets of metal being bent over a conical mandrel with the aid of a test device.
• ImpactTest
• Specular Gloss – a measure of the light reflected by the surface of a material.
• Crosshatch Adhesion – evaluates the adhesive strength of coatings applied to metallic substrates and proves that the cleaning and preparation of the substrate has been properly prepared for coating.
R&D to Production Capabilities
Chris says, “We are required to meet 10% testing for certain customers, and since we do 100% testing on our ceramic and powder coat films, it has opened doors for us with engineers on R&D programs, where we analyze the limitations of coatings and establish reasonable expectations. Currently, we’re collaborating with many talented young engineers who are not familiar with coating processes. We engage at the design level to assist in developing specifications.We have developed special presentation workshops to share with our customers in a classroom type setting that show shop level steps in production. These workshops cover the; who, what, where, why and how of our processes.”
• Pencil Hardness – Gouge and scratch testing, a method used to assess the hardness of a coating by dragging pencils of varying hardness across its surface, with the hardest pencil that can scratch the coating indicating its relative hardness level; also known as the Wolff-Wilborn test
Chris says, “We plan to expand systematically by solving our customers’ problems. In the past, we’ve introduced new lines and processes when customers’ demands arose. As an example, we purchased our PVD/DLC chamber when one of our customers lost its local supplier. Building strong customer relationships and being open to bringing on new processes has been our core business strategy, and this will continue to be our mantra going forward.
• Solvent MEK or Acetone Rub Test – is a quality control method used to assess the cure level of a coating, typically a powder coating, by rubbing a surface with a cloth or cotton swab saturated with either Methyl Ethyl Ketone (MEK) or Acetone to see if the coating softens, removes, or shows signs of improper curing; essentially, it checks how well the coating has bonded to the substrate by applying a solvent to see if it can be easily rubbed off.
For production, the company processes approximately 5,000 knife blades per week, and overall, they perform special processing on a sampling of over 100,000 parts monthly,
Detailed Masking
• Mandrel Bend Test - enables assessment of the resistance of a coating to cracking and/or flaking from a metallic substrate. This involves coated and scored sheets of metal being bent over a conical mandrel with the aid of a test device.
• Impact Test
Chris says, “We focus heavily on detailed masking. Approximately 90% of the parts we coat involve some form of masking, and 100% of the satellite products use it. We utilize plotters to print die-cut stickers for masking, eliminating the need for hand trimming.”
R&D to Production Capabilities
The MASIC dedicated workforce comprises 36 employees, and the company is open 5 days a week, 16 hours per day. Of its team, only a handful (less than 5) have less than 5 years of tenure with the company. One-third have more than 15 years with the company, and the remainder have 5-10 years of tenure. “We are very proud and grateful to have such a dedicated staff here to support our customers”, Chris says.
Chris says, “We are required to meet 10% testing for certain customers, and since we do 100% testing on our ceramic and powder coat films, it has opened doors for us with engineers on R&D programs, where we analyze the limitations of coatings and establish reasonable expectations. Currently, we’re collaborating with many talented young engineers who are not familiar with coating processes. We engage at the design level to assist in developing specifications. We have developed special presentation workshops to share with our customers in a classroom type setting that show shop level steps in production. These workshops cover the who, what, where, why and how of our processes.”
Detailed Masking
• PencilHardness – Gougeandscratchtesting, a methodusedto assess the hardness of a coating by dragging pencils of varying hardness across its surface, with the hardest pencil that can scratch the coating indicating its relative hardness level; also known as the Wolff-Wilborn test
• SolventMEKorAcetoneRubTest – is a qualitycontrolmethod
used to assess the cure level of a coating, typically a powder coating, by rubbing a surface with a cloth or cotton swab saturated with either Methyl Ethyl Ketone (MEK) or Acetone to see if the coating softens, removes, or shows signs of improper curing; essentially, it checks how well the coating has bonded to the substrate by applying a solvent to see if it can be easily rubbed off.
• MandrelBendTest - enablesassessmentoftheresistanceof a coating to cracking and/or flaking from a metallic substrate.This involves coated and scored sheets of metal being bent over a conical mandrel with the aid of a test device.
• ImpactTest
R&D to Production Capabilities
The company wants to help bring new technologies to the industry, as an example, today they are participating in R&D endeavors with thinfilm ceramic companies, particularly focused on advancing ceramics for space and automotive markets.
strong customer
Here’s what some Customers are saying about MASIC Industries:
Chris says, “We are required to meet 10% testing for certain customers, and since we do 100% testing on our ceramic and powder coat films, it has opened doors for us with engineers on R&D programs, where we analyze the limitations of coatings and establish reasonable expectations. Currently, we’re collaborating with many talented young engineers who are not familiar with coating processes. We engage at the design level to assist in developing specifications.We have developed special presentation workshops to share with our customers in a classroom type setting that show shop level steps in production. These workshops cover the; who, what, where, why and how of our processes.”
For production, the company processes approximately 5,000 knife blades per week, and overall, they perform special processing on a sampling of over 100,000 parts monthly,
Detailed Masking
Chris says, “We focus heavily on detailed masking. Approximately 90% of the parts we coat involve some form of masking, and 100% of the satellite products use it. We utilize plotters to print die-cut stickers for masking, eliminating the need for hand trimming.”
Chris says, “We plan to expand systematically by solving our customers’ problems. In the past, we’ve introduced new lines and processes when customers’ demands arose. As an example, we purchased our PVD/DLC chamber when one of our customers lost its local supplier. Building strong customer relationships and being open to bringing on new processes has been our core business strategy, and this will continue to be our mantra going forward.”
and
open new processes has been our core business strategy, and this to be our mantra going forward.
Here’s what some Customers are saying about Industries:
- Director of Sales and Marketing for a major manufacturing company in the Oregon; MASIC Industries has supported us with our hard to mask and hard to coat parts for over 5 years. They work consistently with us to maintain and bring down cost while sometimes delivering the fastest ‘Hail Mary’ deliveries no one can attempt to do.When we ask them for a 3-day turn around we don’t hear any grumbling we just hear thank you for the business. Chris and his team are so fun to do business with. We are working with them on some new finishes for our key customers and they are very knowledgeable about finishes and how they can be engineered into new products. They are like our engineering arm for coatings and finishes. If you’re looking for a partner that can supply you fast, perfect, coated, and precision masked parts and assemblies call Chris at Masic Industries.
- Director of Sales and Marketing for a major company in the Oregon; MASIC Industries has supported to mask and hard to coat parts for over 5 years. They work with us to maintain and bring down cost while sometimes fastest ‘Hail Mary’ deliveries no one can attempt to do.When for a 3-day turn around we don’t hear any grumbling we you for the business. Chris and his team are so fun to do We are working with them on some new finishes for our and they are very knowledgeable about finishes and how engineered into new products. They are like our engineering coatings and finishes. If you’re looking for a partner that fast, perfect, coated, and precision masked parts and assemblies at Masic Industries.
Here’s what some Customers are saying about MASIC Industries:
The MASIC dedicated workforce comprises 36 employees, and the company is open 5 days a week, 16 hours per day. Of its team, only a handful (less than 5) have less than 5 years of tenure with the company. One-third have more than 15 years with the company, and the remainder have 5-10 years of tenure. “We are very proud and grateful to have such a dedicated staff here to support our customers”, Chris says.
- Sales Manager for a major precision machining and sheet metal company in the West; MASIC Industries has supported us with our hard to mask and hard to coat parts for many years. Their friendly approach and their impeccable quality have made it easy to get secondary finishing to our sometimes hard to please customers. Chris and his team are great to do business with and we recommend them highly as a reliable partner.
- Sales Manager for a major precision machining and sheet in the West; MASIC Industries has supported us with our and hard to coat parts for many years. Their friendly approach impeccable quality have made it easy to get secondary sometimes hard to please customers. Chris and his team business with and we recommend them highly as a reliable For more information on Masic Industries their extensive line of finishes and coatings contact them at: info@masicindustries.com, 503-969-4140, www.masicindustries.com
For more information on Masic Industries and their extensive line of finishes and coatings contact them at: info@masicindustries.com, 503-969-4140, www.masicindustries.com
Director of Sales and Marketing for a major manufacturing company in the Oregon; “MASIC Industries has supported us with our hard to mask and hard to coat parts for over 5 years. They work consistently with us to maintain and bring down cost while sometimes delivering the fastest ‘Hail Mary’ deliveries no one can attempt to do. When we ask them for a 3-day turn around we don’t hear any grumbling, we just hear “thank you for the business”. Chris and his team are so fun to do business with. We are working with them on some new finishes for our key customers and they are very knowledgeable about finishes and how they can be engineered into new products. They are like our engineering arm for coatings and finishes. If you’re looking for a partner that can supply you fast, perfect, coated, and precision masked parts and assemblies call Chris at MASIC Industries.”
Chris says, “We focus heavily on detailed masking. Approximately 90% of the parts we coat involve some form of masking, and 100% of the satellite products use it. We utilize plotters to print die-cut stickers for masking, eliminating the need for hand trimming.”
The MASIC dedicated workforce comprises 36 employees, and the company is open 5 days a week, 16 hours per day. Of its team, only a handful (less than 5) have less than 5 years of tenure with the company. One-third have more than 15 years with the company, and the remainder have 5-10 years of tenure. “We are very proud and grateful to have such a dedicated staff here to support our customers”, Chris says.
Sales Manager for a major precision machining and sheet metal company in the West; “MASIC Industries has supported us with our hard to mask and hard to coat parts for many years. Their friendly approach and their impeccable quality have made it easy to get secondary finishing to our sometimes hard to please customers. Chris and his team are great to do business with and we recommend them highly as a reliable partner.”
For more information on MASIC Industries and their extensive line of finishes and coatings contact them at: info@masicindustries.com, 503-969-4140, www.masicindustries.com
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Spaceport America Inks MOU with GloballyRecognized Economic Development Engine
LG Energy’s East Valley Battery Plant Construction Pushes Ahead
The Borderplex Alliance
LAS CRUCES, N.M -The Borderplex Alliance and Spaceport America today signed a Memorandum of Understanding, formalizing a new collaboration between the two organizations. This partnership will open up thrilling opportunities to propel the Borderplex region’s economy to new heights.
LG Energy Solution will ramp up hiring for its $5.5 billion Arizona battery project in 2025 as it continues building the first phase of its manufacturing plant in metro Phoenix.
“We are thrilled about teaming up with Spaceport America,” said Jon Barela, CEO of The Borderplex Alliance. “Together, we will initiate new programs that stimulate job creation and capital investment in our region. The commercial space industry is expanding rapidly, and this alliance ensures the Borderplex will be at the forefront of this 21st-century industry.”
Spaceport America, the world’s first purpose-built commercial spaceport,
has seen great success since its 2010 founding. The spaceport enables aerospace companies to innovate and test technologies in rocket launches, space tourism, astronaut training, and more.
produce batteries to supply Rivian Automotive Inc.’s manufacturing plant in Illinois for its R2 model vehicles.
Although it has temporarily paused plans for the second phase of the project, LGES eventually expects to build another battery manufacturing facility for energy storage systems.
“Partnering with The Borderplex Alliance gives a big boost to Spaceport America’s mission,” said Scott McLaughlin, Executive Director of Spaceport America. “This collaboration broadens our reach and helps grow New Mexico’s role as a leader in the commercial space sector.”
Eventually the LGES site will span three main manufacturing buildings with ancillary facilities across 320 acres it owns in Queen Creek.
With its proximity to Spaceport America, the Borderplex region is well-positioned to capitalize on this partnership. The spaceport has already spawned many new economic development opportunities in the region. This alliance will enable more economic activity in R&D, manufacturing, and high-tech services.
The first phase of the company’s project will represent a $3.2 billion investment with 2,800 jobs. They’re expected to start ramping up hiring next year.
“Together, we will create more economic development opportunities in science, technology, engineering, and math,” added Barela.
LG finalizing water deal for factory To support job training, the state has partnered on a new workforce accelerator for a 20,000-squarefoot Central Arizona College training facility focused on battery manufacturing. Construction for that facility started in May and is expected to be ready for training next year. By Audrey Jensen –Reporter, Phoenix Business Journal
Through this strategic alliance, the two organizations will collaborate on marketing, business development, and policies that enable the commercial space industry to thrive in the Borderplex region. Both parties look forward to launching transformative aerospace projects that create good-paying jobs and fuel economic growth.
U.S. Economy
Positioned for Growth as 2025 Economic Outlook Forecasts Expansion
Spaceport America is the first purpose-built commercial spaceport in the world. The FAAlicensed launch complex, situated on 18,000 acres adjacent to the U.S. Army White Sands Missile Range in southern New Mexico, has a rocket-friendly environment of 6,000 square miles of restricted airspace, low population density, a 12,000-foot by 200-foot runway, vertical launch complexes, and about 340 days of sunshine and low humidity.
Its first factory, totaling more than 1 million square feet, is currently about 35% completed, according to the town of Queen Creek’s latest update on the project at its Town Council meeting.The South Korean company started vertical construction on the facility earlier this year and is expected to deliver the building by the end of 2025 for its cylindrical batteries for electric vehicles.
Some of the most respected companies in the commercial space industry are tenants at Spaceport America: Virgin Galactic, HAPSMobile/ AeroVironment, UP Aerospace, SpinLaunch, and Prismatic Ltd., a subsidiary of BAE Systems.
The Borderplex Alliance is an award-winning economic development and policy advocacy organization. It is independent, non-partisan, and private sector-led. The mission of The Borderplex Alliance is to bring jobs, hope, and opportunity to the Borderplex region.
LG Energy Solution, or LGES, recently announced that its Arizona facility will
After a strong performance in 2024, the U.S. economy will continue to benefit from a solid labor market, rising household wealth, and resilient consumer spending next year according to the 2025 Equipment Leasing & Finance U.S. Economic Outlook. Real equipment and software investment growth is projected to be 4.7% in 2025, roughly on par with growth in 2024 with stronger investment activity expected in the latter half of the year. The report, which was prepared by Keybridge
and released by the Equipment Leasing & Finance Foundation, also forecasts real GDP growth of 2.7% next year, similar to the estimated 2.8% growth observed in 2024.
The Foundation’s report is focused on the $1.3 trillion equipment leasing and finance industry, and highlights key trends in equipment investment, placing them in the context of the broader U.S. economic climate.
Leigh Lytle, President of the Foundation, and President & CEO of the Equipment Leasing and Finance Association, said, “The economy blew past expectations in 2024 as strong consumer spending and business investment pushed growth above trends experienced prior to the pandemic. Data on new loan volume from ELFA’s CapEx Finance Index and executive sentiment in the Foundation’s Monthly Confidence Index suggest that momentum carried through to the fourth quarter, and lines the economy up for a strong 2025. That said, the potential for a trade war and persistent inflation could cause the Federal Reserve to slow the pace of rate decreases, which would weigh on the U.S. economy. Time will tell how all of these things shake out, but if we’ve learned one thing from 2024, it’s to never bet against the strength of American consumers or the resiliency of American business.”
Highlights from the 2025 Outlook include:
Equipment and software investment expanded 7.5% (annualized) in Q3, the second consecutive quarter of solid growth. Aircraft investment, which has more than doubled since Q1, was again primarily responsible for the strong performance. Growth in computers and communication equipment has also been strong, while construction machinery investment contracted again.
The U.S. economy continues to outperform its international peers. Despite the unprecedented downturn in early 2020, the U.S. economy is roughly 11% larger in inflation-adjusted terms than it was at the end of 2019, faring far better than other major
economies. Businesses are more optimistic about their prospects in 2025, in part due to the prospects of lower taxes and less regulation under the incoming Trump administration and a Republicancontrolled Congress. Looking to Fed policy, the December employment report confirmed that the labor market remains generally healthy, with 227K jobs created in November and upward revisions to the previous two months’ data. These data align with Fed Chair Jay Powell’s description of recent economic performance as “remarkably good” and “not sending any signals [for] the need to be in a hurry to lower rates.”
Nonetheless, markets overwhelmingly predict another rate cut at the Fed’s December 18th meeting. In 2025, FOMC members will closely monitor upside risks to inflation and downside risks to employment.
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Accuracy starting at: (1.7 + 3L/1000) μm
PH20
The PH20's infinite positioning guarantees optimal feature access, minimizing stylus changes. The 5-axis simultaneous motion allows larger parts to be measured on the CMM by minizising the space required around the part for head rotation. The PH20 automatically aligns itself with the part co-ordinate system, avoiding stylus collisions.
Accuracy starting at: (2.2 + 3L/1000) μm
The higher accuracy specification of the CRYSTA-Apex S gives it more than double the effective measuring range in terms of accuracy-guarantee capability.
The CRYSTA-Apex EX T is the same in terms of measuring range and accuracy as the CRYSTA-Apex S only configured with the dedicated PH20 probe system.
ARIZONA MEP WORKSHOPS
Arizona a MEP P offers s workshops s designed d to o meet t the e business s needs s of manufacturers.
AZ MEP CMMC Compliance: Building a Roadmap to Prepare Your Company For Compliance Today - January 9th
Is your organization prepared for the future of cybersecurity compliance? Join us for a comprehensive workshop designed to simplify the CMMC framework and guide your business toward compliance success.
Arizona MEP Lean Green Belt Certification – Starting January 13th
Designed for leaders in charge of implementing and sustaining Lean activities, this 5-day workshop is loaded with practical examples, breakout sessions and a real-world project where key concepts are applied.
AZ MEP Maintenance Excellence and Your Bottom Line - Lunch and Learn - January 29th
During this lunch and learn, participants will not only gain a better understanding of World-Class Maintenance, but also learn how it can positively affect the bottom line, making this session highly relevant and beneficial for all attendees.
Additional workshops are posted on the website!
California Electric Truck Company To Open Engineering HQ In Phoenix
California-based electric truck startup Terraline plans to establish its engineering headquarters in the Valley and create 30 new jobs, the company announced.
Terraline’s engineering headquarters in the Phoenix area will be the “focal point” of development for its Tangra LH1, a Class 8 battery electric truck with a range of more than 500 miles.
“Arizona has welcomed Terraline with open arms,” Graham Doorley, founder and CEO of Terraline, said in a statement. “Their businessfriendly environment, exceptional engineering talent, and reduced operations costs made moving to Arizona from California an easy choice. I especially want to thank the Arizona Commerce Authority for their continued support of Terraline.”
Terraline’s battery electric truck is designed to be driven by a human or autonomously and intended to eliminate CO2 emissions and decarbonize freight fleets, according to the company. The company was established as Solo Advanced Vehicle Technologies in 2021. A year later, it revealed the design and specifications for its SD1, a Class 8 truck designed to be fully autonomous. In 2023, the company rebranded from SVT to Terraline and announced an expansion of its product line to include the Tangra LH1.
Terraline’s executive team has previous experience with Ford, Rivian, Tesla and
Waymo. The company is backed by investors that include Trucks VC, Maniv Mobility, and Wireframe Ventures.
Most recently, Terraline raised $3 million in a round led by SQM Lithium Ventures, according to data from PitchBook.
In November 2023, Terraline inked a partnership with Jacksonville, Florida-based global supply chain company Crowley to pilot test a prototype of its truck in the first quarter of 2024. Terraline also formalized an order with Crowley with plans to deliver its electric trucks to the company in 2026, according to Crowley’s website.
After the pilot test with Crowley, Terraline would initiate pilot tests with other customers that could take up to a month. The company is planning four to five pilot trials of its electric trucks prior to production, Transport Topics reported.
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“Retail sales are up, and sectors such as transportation, logistics, warehousing, and construction are performing extremely well,” Arora added. “Right now, business owners are confident in the future of their firms. August is typically a slow month for loan volume, but that wasn’t the case this year.”
Colorado Space Defense Company Raises $100 Million, Plans To Hire Dozens
Terraline joins Arizona’s growing electric vehicle ecosystem that includes Nikola Corp. and Lucid Motors. Nikola produced 77 hydrogen fuel-cell electric trucks and delivered 72 to its dealer network in the second quarter, exceeding the company’s guidance as it expected to sell between 50 to 60 trucks.
A company building spaceflight training technology for U.S. Space Force warfighters raised $100 million in venture capital that will fund significant hiring in the coming months.
Business loan approval rates rose at regional and community banks as well. Small banks granted 49.8 percent of the funding requests they received in August, up one-tenth from July. It represents the highest figure for small banks since November 2014.
True Anomaly, based in Centennial, revealed the Series B funding round, saying it will help the 18-monthold business expand, hiring dozens of hardware and software employees over the next year.
Separately, Nikola sold a hydrogen fuel cell electric truck to Walmart Canada, which it’s using in its fleet. The company also received repeat orders from two national accounts. In addition, Nikola is on track to open 14 hydrogen refueling stations by the end of the year.
Institutional lenders — pension funds and insurance companies — remained unchanged at an Index record 64.9 percent, up one-tenth of a percent from July’s figure.
Loan approval rates among alternative lenders rose to 56.6 percent, one-tenth of a percent higher than in the previous month.
The refueling stations are the first step in the company’s plans to create a “hydrogen highway” to support its hydrogen fuel-cell trucks along freeway interchanges and freight routes in Southern California. By Amy Edelen – Reporter, Phoenix Business Journal
“It’s an awesome external validation of our thesis and the traction we’ve been able to accumulate to date,” said Even Rogers, co-founder and CEO of the company.
Alternative lenders have become a source of quick capital. When small business owners, alternative lenders could approve riskier loans via innovations in fintech, which give them more flexibility than the banks to adjust rates and covenants on the deals. This includes an ability to accept non-conventional sources of collateral, such as real estate and outstanding invoices (h/t Forbes).
True Anomaly has grown from about 50 employees to 107 over the past year. It expects to expand to over 190 by the end of 2024, Rogers said.
VC investors found big Arizona startup opportunities this year
True Anomaly formed in early 2022 to help the U.S. military, especially Space Force, respond to the growing militarization of space and the need to have space fighters learn and practice the art of flying satellites and spacecraft in orbit in potentially hostile situations.
Although the national venture capital market faced economic uncertainty, high inflation and elevated interest rates in 2024, Arizona’s tech ecosystem continued to generate investor interest with several startups landing large funding deals.
Credit unions approved 40.2 percent of loan applications in August, a slight drop of one-tenth of a percent from July and a large drop from their all-time high of 57.9 percent in March 2012. By Anthony Noto – Reporter, New York Business Journal
The company built a pair of small satellites, called Jackal, that will be used for training after they’re launched to low Earth orbit about 350 miles above the planet.
How Millennials’ Technology Expectations Can Help Save Manufacturing
While Phoenix-based Virtuous brought in $100 million in the largest fundraising haul among Valley startups in 2024, the deal is classified as private equity as it’s a minority growth investment led by Pennsylvania-based Susquehanna Growth Equity. In a minority growth investment, a private equity firm typically provides capital in exchange for less than 50% ownership in a company.
Millennials’ technology expectations have been shaped by smartphones, Facebook and digital media – in other words, by easy and ubiquitous connectivity. It’s not surprising, then, that traditional manufacturing systems can seem as retro as waiting for dial-up internet to connect. And that’s bad for the manufacturing sector, because its skills gap is looming large.
The satellites are scheduled to blast off aboard SpaceX’s Transporter 10 mission carrying many companies‘ small satellites to orbit in March.
Tempe-based Nectero Medical brought in the largest deal among venture capital-backed startups in 2024 with a $96 million series D round led by Norwest Venture Partners. Boston Scientific Corporation, BioStar Capital, Cadence Healthcare Ventures, Aphelion Capital and other investors also participated.
True Anomaly has offices in Colorado Springs, where its training center for U.S. military space fighters, many of them U.S. Space Force Guardians, will be. Its Centennial headquarters, just south of Denver, is where the business designs, builds and operates satellites and develops software for satellite operations.
A joint study by the Manufacturing Institute and Deloitte Consulting projects a surge of nearly 3.5 million open manufacturing jobs created over the next decade. Some of the empty slots will come by way of retiring baby boomers, while others are related to new positions created as a result of natural business growth, the report found.What the report also predicts: As conditions stand now, 2 million of those jobs will go unfulfilled. In other words, the need for the manufacturing sector to appeal to Millennials – the generation typically defined as those born between 1981 and 1997 – is both critical and a very tall order.
Nectero is using the investment to accelerate the second and third phases of a clinical trial for its Nectero Endovascular Aneurysm Stabilization Treatment (EAST) system, according to the company.
Its Mosaic software is being designed to use artificial intelligence and automation to help space warfighters fly dozens of small satellites in coordination with each other to a degree that hasn’t been readily available to the military, Rogers said.
Indeed, manufacturing still has a negative image among younger generations, experts say. In a 2015 public perception of manufacturing study, also by The Manufacturing Institute and Deloitte, respondents ages 19 to 33 ranked manufacturing as their lowest preference in terms of potential career choices.
The Space Force in September awarded the company $17 million in a small business innovation research grant to further work on Mosaic. With its new VC funding, the company also plans to build dozens of satellites in 2024 and 2025 it will launch to add to its training portfolio.By Greg Avery – Denver Business Journal
Manufacturing’s image problem is complex and in, some aspects, based on false assumptions. But one real obstacle is that some manufacturing systems can seem antiquated, and it’s an issue that many manufacturers and related organizations are already addressing.
National venture capital transactions totaled $37.5 billion across 2,794 deals in the third quarter, according to PitchBook data. Arizona companies inked 37 deals totaling $248.2 million in Q3 compared to 36 deals and $295.8 million raised in the third quarter of 2023. Valley startups secured 29 deals totaling $238.3 million in the third quarter, compared to 32 deals totaling $290.9 million in Q3 2023. Fourth quarter data from PitchBook is not yet available in is expected to be available in January.
How a Boss’s Rejection Launched a Legacy: The Hughes Performance Story
Lorraine and Bill Hughes always wanted to own their own business, but it was Bill’s employer who ‘helped’ them to realize their dream. As an experienced machinist, Bill was building torque converters for his employer in Phoenix, and he told his boss he had ideas for product improvements. When his boss told him to “just do his job and not worry about changing things ”, he knew it was time to go out on his own.
And so, Hughes Machine Company was born more than 1/2 century ago, in 1971. Over the years, Lorraine and Bill built the business, and their 3 children, Jan, Jim, and Jeff all were integral members, as was Jan’s husband Larry. Today, the name has changed to Hughes Performance Inc., and Jim, Jan, and Larry are retired, with Jeff now the sole owner of the business. The company specializes in highperformance automatic transmissions and torque converters, and its products are shipped throughout the world through an extensive distribution network.
When asked what family members are in the business today, Jeff says, “I think of all our employees as family.” Among blood relatives, his daughter Jessica Paratore works alongside him, and even his wife Lisa worked in the office with his sister Jan in the past. But to his point, when you enter the building, you will see a plaque on the wall that shows the employees with 10, 15, 20, 25, and 30 years of tenure at the company. The plaque is quite full, and several employees also have a family member working for the company. The tradition extends to families within the workforce, like Kimberly Hutcherson, with her husband Ron, and Rich Mobley, with his son Matt just to name a few.
The Shift to In-House Machining
Hughes Performance has long had an in-house machine shop, though until about a dozen years ago, all machines were manual. The company relied on outside local machine shops to machine many of its components, and Jeff counts many of these partners as friends. “This worked for a period, but when everyone got busy, they couldn’t make our parts in the timeframes we needed”, Jeff says. The solution? Bring machining in-house.
Jeff knew of some good used machines that were available in Phoenix, and he purchased a couple of Haas mills, a Haas lathe, as well as other machines. He says, “They were old, one from the late 1990s, but I knew the owners of the machines, and I knew they were well taken care of.” The acquisition of their first CNC machines enabled Hughes to bring machining in-house, where they could better control the turnaround times of their parts.
Hughes has owned these used Haas machines for several years, and during this time they have gotten to know the local Haas dealer, Ellison Machinery. Jeff says,
Jeff Hughes and Daughter Jessica Paratore
Kimberly and Ron Hutcherson, Husband and Wife
Father/Son Rich and Matt Mobley, Experts in Custom Torques
The Hughes Performance Machine Shop Team with Ellison’s Ben Schacht
Kimberly and Matt Proudly Display Hughes Product
“I have been impressed with Ellison Machinery since we started working with them. Though we hadn’t purchased any machines from them (as ours were all used), they have been an outstanding partner of ours, coming out to fix or perform PM (Preventive Maintenance) whenever we needed them. When they have been repaired, typically the part is right on the Haas truck, and the repair is done on the spot. “He adds, “We also really like the Haas machines, not only because of the outstanding service we get, but also because the machines are so user-friendly, easy to program, and intuitive.”
Ellison Machinery Business Manager
Ben Schacht explains the appeal: “Most machinists are familiar with Haas machines, as they’re widely used in training programs thanks to the Gene Haas Foundation supporting and promoting STEM education. Plus, Haas holds approximately 65% of the U.S. market share for vertical machining centers (VMCs) and about 30% for turning centers, so machinists often know how to operate them right away.”
A New Era with the Haas ST-30Y
As Hughes Performance has grown, they have added new team members who hail from the aerospace world, including Chris, Kimberly and Ron.
Matt says, “Our older Haas machines were working well for us, but we know that the newer model will help us to produce even better parts faster. “
Although Jeff missed the Ellison Machinery’s infamous Open House this past fall, Kimberly and Chris from the CNC department attended. They didn’t just enjoy the fantastic barbeque lunch; they also came back with pricing and the specs for the machine they wanted for the shop.
On the day of our interview in early December. Hughes Performance took delivery of their first new CNC machine ever, the Haas ST30Y.
Ben explains, “The Haas ST Series high-performance turning centers are engineered from the ground up to deliver exceptional setup flexibility, robust rigidity, and outstanding thermal stability. The ST30Y offers a spacious work envelope, and the inclusion of a Y-axis
Hughes’ Performance’s first new Haas, the ST-30Y, being delivered last month with live tooling expands its capabilities to handle milling, drilling, and tapping, enhancing overall machine versatility.”
Kim explains, “Our high-performance Powerglide output shaft will go from 6 operations to 3 with the new Haas ST-30Y. This includes an outside operation that often took 2 plus weeks. As another example, the stator cap that Ben and Jeff are holding (pictured to the left) will be reduced to 1 operation from the previous 3.”
She continues, “We are excited about the live tooling on our new Haas lathe, as it allows for secondary operations like drilling, milling, and tapping to be performed on a single setup. This will significantly increase productivity by eliminating the need to move the workpiece to a separate machine for additional machining,”
Jeff quips, “Barbeques at Ellison Machinery paid off for them — we are evidence!”
Continuing the Legacy
As Hughes Performance embraces new technology, its commitment to quality and family remains steadfast. With a dedicated team, cutting-edge equipment, and a storied history of innovation, Hughes is poised to drive forward into its next chapter.
To learn more about Hughes Performance’s world-class high-performance transmissions and torque converters, contact them at 602-2579591or visit hughesperformance.com
Haas Automation manufactures a complete line of CNC Vertical and Horizontal Machining Centers, Turning Centers, 5-axis Machining Centers, Rotary Products, and fully integrated Automation Solutions. To learn more about the Haas machines, as well as Ellison Machinery’s other offerings, contact Haas Factory Outlet / HFO130, a Division of Ellison Machinery Company, visit www.EllisonAZ.com or call (480) 968-5877.
GLADHILL ASSOCIATES INTERNATIONAL
An activist investor with a $5 billion stake in Honeywell International Inc. is calling for the company to separate its aerospace and automation divisions into separate businesses, stating it would unlock additional shareholder value and improve its performance when compared with industry peers.
In a letter to Honeywell, New York-based Elliott Investment Management wrote that Honeywell’s “conglomerate structure” no longer suits the company and “uneven execution, inconsistent financial results and an underperforming share price” have diminished its strong record of value creation over the last five years.
Elliott wrote the “time has come” for Charlotte, North Carolina-based Honeywell to “embrace simplification” by separating Honeywell Aerospace – which is headquartered in Phoenix – and Honeywell Automation into separate companies, each with valuations exceeding $100 billion. The business separation could result in a share price bump between 51% to 75% over the next two years.
“As independent entities, Honeywell Aerospace and Honeywell Automation would benefit from simplified strategies, focused management, improved capital allocation, better operational performance, enhanced oversight, and numerous other benefits now enjoyed by dozens of large businesses that have moved on from the conglomerate structure,” Elliott wrote.
Elliott contends that Honeywell’s leadership is “constantly contending” with multiple operational challenges as its navigates the complexity of managing the company’s 12 large business lines. In addition, missteps in sales execution have weighed on the company’s performance, raising the question of whether a smaller organization led by “hyperfocused executives” could navigate those issues more efficiently.
Elliott has built a more than $5 billion stake in Honeywell, positioning it among the company’s top five investors that include Vanguard Group Inc., Blackrock Inc., State Street Corp. and JP Morgan Chase & Co.
In a statement to the Business Journal, Honeywell said its board of directors and management “acknowledge and appreciate the perspectives” of its shareholders.
It’s not the first time that activist investor Elliott acquired a significant stake in a publicly-traded company and pushed for changes.Most recently, Elliott spent months pushing for leadership changes at Southwest Airlines. The activist investor, which has a roughly $2 billion stake in Southwest, struck a deal with the carrier in October that reshaped the Dallas-based airline’s board and give Elliott more representation.
ASU lands $100
million CHIPS Act grant for advanced packaging research project
Arizona State University has landed a multimillion-dollar federal grant to accelerate advanced packaging research and development for the semiconductor industry.
The National Institute of Standards and Technology — part of the U.S. Department of Commerce — announced Thursday it plans to award ASU a CHIPS Act grant up to $100 million to support the SHIELD USA initiative, a project led by a university research team and Deca Technologies, a Tempe-based advanced packaging technology provider.
SHIELD USA will spur creation of a domestic ecosystem of new advanced packaging service providers — or interconnect foundries — centered on molded core substrate and fan-out waferlevel packaging technologies.
SHIELD USA’s team is led by Jason Conrad, chief operating officer of the Southwest Advanced Prototyping Hub and Craig Bishop, chief technology officer of Deca Technologies.
“To bring substrate manufacturing back to the U.S., we need to change the game. More than incremental progress, we need 10X breakthroughs,” Bishop said in a statement. “This is a fantastic example of a university working in close partnership with industry to drive innovation, and we’re excited to partner so closely with ASU and to collaborate with leading industry players in this effort to reestablish technology leadership.”
step for U.S. semiconductor independence and it is the area of expertise in which we are in direct competition with China to determine who will unlock the future of innovation in semiconductor chip manufacturing,” Michael Crow , president of ASU, said in a statement. “ASU is well prepared with a dynamic partner in Deca Technologies, and we are eager to lead the work that will enable SHIELD USA to play a pivotal role in ensuring the country’s technological and economic future.”
The project will be based at ASU’s MacroTechnology Works — home to the Advanced Electronics and Photonics Core Facility — where researchers will explore the commercial viability of 300 mm waferlevel and 600 mm panel-level manufacturing, a technology that does not yet exist as a commercial capability in the U.S.“This is a critical
What’s more, ASU plans to leverage its workforce development expertise to provide new educational resources — including tailored course materials and training programs for underserved communities — to upskill and reskill workers in semiconductor technology.
In addition to Deca Technologies, the SHIELD USA team has participation from several major semiconductor companies, including AMD, IBM, NXP, Synopsys, Saras Micro Devices and Analog Devices.
Industrial & Commercial Electrical
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a $1.19 billion contract to upgrade weaponry for the U.S. Air Force, Navy and other foreign forces.
Raytheon has been working on the TOW weapons system for years and continues to make improvements. The company said it recently demonstrated upgraded fuzing and target detection in the TOW 2B variant of the missile. Other improvements are meant to meet military environmental, logistical and terrain needs.
The latest updates save time in engaging targets and help in complex urban environments, Raytheon said.
Raytheon To Work On Upgraded Anti-Armor Weapons Under New Deals
A pair of contracts worth $676 million calls on Raytheon’s missile-building operation in Tucson to continue its work on the tube-launched, optically tracked, wireless-guided — or TOW — weapon system for the U.S. Army.
The deals include a $430 million annual production contract for fiscal year 2023 and another award for 2024 worth $246 million, according to a recent announcement from Raytheon, the defense-contracting division of Virginia based RTX Corp.
The TOW system is a long-range precision system that ground forces and others can use against tanks and other armored, wheeled and amphibious threats. The extended-range missiles can be fired from a variety of manned and unmanned vehicles, including the High Mobility Multipurpose Wheeled Vehicle, Stryker anti-tank guided missile vehicle, Bradley Fighting Vehicle and other light armored vehicles.
Raytheon ranked as Arizona’s No. 7 largest defense contractor in 2023, when it landed 748 Department of Defense contract awards, according to Phoenix Business Journal data. Recent contracts for the contractor have included a $525M multinational sea missile contract and
“Our TOW production line is active, and we can manufacture up to 10,000 missiles annually,” said Tom Laliberty, president of Land and Air Defense Systems at Raytheon, in a statement. “This combatproven effector is ready to meet current and future anti-tank guided missile requirements for the US Army, Marines Corps, and land forces across the globe.”
Raytheon said it has delivered more than 700,000 TOW weapons systems to the U.S. and foreign militaries — including about 13,000 TOW missiles that have been provided to Ukraine, which has been fighting an invasion by Russia since early 2022. It also said that the system has been used in combat 11,000 times.
The contractor also said
the TOW weapon system will be in service beyond the year 2050.
Raytheon’s Tucson operation picked up a couple of other contracts in October:
The U.S. Navy announced on Oct. 24 that Raytheon was awarded a $15,902,690 contract modification to exercise options for design agent and engineering support services for the Rolling Airframe Missile. Work will be performed in Tucson, Arizona, and is expected to be completed by March 2028.
The U.S. Air Force announced on Oct. 2 that Raytheon was awarded a $73 million delivery order under a previous contract for hypersonic attack cruise missile manufacturing capacity enhancement. Work will be performed in Tucson, Arizona, and is expected to be completed by Sept. 30, 2028. By Jeff Gifford – Phoenix Business Journal
Santa Teresa International Jetport Expansion Aims
To Streamline Borderplex
Supply Chain
A $22.5 million runway expansion in New Mexico’s Borderplex promises to attract manufacturers seeking to capitalize on Santa Teresa’s strategic location to the Mexico border and U.S. consumers.
The runway expansion, scheduled to be completed in January, would allow manufacturers to fly in cargo from nearby facilities, eliminating the current 90-minute commute through El Paso’s traffic and construction. More importantly, it would allow manufacturers to recover the labor hours lost to the early production line shutdowns needed to make international flights, says Jetport Director Bill Provance. He also pointed to road construction on Interstate 10 and the construction on El Paso’s Bridge of the Americas shutting down cargo lanes — further supply chain encumbrances that the Jetport could alleviate.
The expansion would also strengthen air shipping capacity in the region, accommodating larger aircraft and a higher volume of goods. Widened from 100 feet to 150 feet, the runway can host Boeing 757 aircraft — a midsize air cargo plane that has a range of 3,400 nautical miles. Before the expansion, the runway could not accommodate any cargo aircraft, Provence said.
The expansion would likely support time-sensitive medical implements and auto part supply chains in the near term, he added.
Three companies have expressed interest in opening cargo operations, discussions which will grow more serious with Jetport expansion is finished. Provance also expects the expansion to draw building investment in the nearby business park.
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Tracking CHIPS and Science Act awards
The landmark law has boosted U.S. semiconductor production with $39 billion in federal funding for manufacturing projects. Track the status of each funding award made since the law’s passage in 2022.
The monumental legislation has boosted domestic semiconductor manufacturing with a massive $39 billion funding bucket for manufacturing projects. This tracker follows every CHIPS funding award allocated since 2022.
It’s been more than two years since the Biden-Harris administration ushered through the CHIPS and Science Act, a landmark technology law that allocates $52.7 billion to bolster U.S. semiconductor manufacturing, research and workforce development. The monumental legislation aims to onshore chip manufacturing, an industry that has long been dominated by foreign countries such as China, Taiwan and South Korea.
Included in the law is $39 billion allocated for semiconductor manufacturing projects, which the Commerce Department began doling out as funding awards in December 2023.
Thus far, the Commerce Department has finalized $22.9 billion in funding awards to ten companies and proposed
$10.6 billion to the remaining 18 companies.
The White House has been racing to finalize awards for companies before President-elect Donald Trump takes office in January. The state of the CHIPS Act remains unknown as Trump has expressed disdain for the federal subsidies, including those granted in the law.
Some of the top awardees of CHIPS funding are Taiwan Semiconductor Manufacturing Co., Intel and Samsung Electronics, all with awards of more than $6 billion.
The legislation also includes $13.2 billion for R&D and workforce training and $500 million for global semiconductor supply chain security. Additionally, the act offers a 25% investment tax credit for capital expenses related to semiconductor manufacturing and equipment.
Manufacturing Dive is tracking the status of each award funded by the CHIPS Act’s $39 billion for manufacturing projects. Read on for the status and details of each project.
$6 billion worth of CHIPS manufacturing funding remains unused.
Out of the $39 billion bucket, the Commerce Department has proposed and finalized funding awards to 27 companies.
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