The Monthly Newsletter of the Council of Industry

June 26, 2025

NOTE: Insight Exchange along with other Council of Industry programs and services will soon require members to log into their Member Compass account.

In this episode of Insight Exchange, Florian Doumenc from Trout Software delves into the growing complexities and security challenges at the intersection of IT and OT in modern factories. Florian shares practical insights on creating secure, compliant, and efficient networks tailored for today's interconnected industrial environment. Key topics include network segmentation, zero trust architecture, and best practices for managing and protecting operational technology.

About Trout

Trout is an innovative software platform designed to simplify and streamline workforce management for manufacturers. With tools that automate apprenticeship tracking, compliance, and reporting, Trout helps organizations save time, stay organized, and focus on growing their workforce.

Learn More

Trout: https://trout.software/

Insight Exchange Playlist:

• Immigration Update - Jackson Lewis PC – Watch on Demand
• PFAS - Langan Engineering & Environmental Services – Watch on Demand
• What is a Health Care Consortium, and Why It Could Save You - Watch on Demand
• Cyber Security Best Practices – Fisch Solutions – Watch on Demand
• Summer Energy Market Update by NRG - Watch on Demand
• OSHA’s Top 10 Most Frequently Cited Standards and How to Comply - Walden Environmental Engineering – Watch on Demand
• Building a Strong Manufacturing Talent Pipeline - Insperity - Watch on Demand

If you are interested in sharing your knowledge and expertise, please reach out to Johnnieanne Hansen at info@councilofindustry.org.

The Council of Industry will hold its Annual Golf Outing on the last Monday in August at the Powelton Club in Newburgh. Registration and lunch will begin at 11:30 followed by a shotgun start at 12:30. Cocktails and a light dinner will follow at approximately 5:00 p.m.

The event is sold out - but a few soponsrships- especially tee sponsors - are still avialble.

Thank You Sponsors!

Corporate Sponsor - Thank you JP Morgan Chase

Shirt Sponsor - Thank you NRG

Cocktail Sponsor - Thank you Brightcore Energy

Lunch Sponsor - Thank you Viking Industries

Golf Cart Sponsor - Thank you Ulster Savings Bank

Yellow Ball Prize Sponsor - Thank you Package Pavement Corp

Best Ball Prize Sponsor - 1,250

Scramble Prize Sponsor - Thank you BELFOR Property Restoration

Closest to the Pin Prize Sponsor - Thank you Fisch Solutions

Hole In One - 1,050 - Thank you Elna Magnetics

Longest Drive Prize Sponsor - Thank you Bleakley Platt & Schmidt, LLP

Tee Sign Sponsors:

• Trout Software
• M&T Bank
• ITC Communications
• Rhinebeck Bank
• Brown & Brown
• NBT Bank
• Fair-Rite Products Corp.
• Langan Engineering & Environmental Services
• Provident Bank
• MVP Health Care
• PKF O'Connor Davies, LLP

More Tee Signs Available - Click Here to learn more

Manufactuirng Industry News

Manufacturers Optimistic About Tech, Industry 4.0

Engineers closest to digital manufacturing and smart factories report they are optimistic as organizations look ahead to Industry 4.0 and digital transformation.

Earlier this year Revalize—provided a unique insight on what producers are prioritizing, their challenges, and the future of manufacturing. The company whose offerings allows manufacturers to design, model, develop, and sell their products, surveyed 500 CPQ, PLM, and engineering modeling or simulation professionals in the United States and Germany.

“Smart Manufacturing 2025: Trends Shaping the Digital-First Era and Beyond,” reported that 57 percent of those they surveyed indicated that their organizations had increased the headcount of their teams over the last 12 months.

Further, 36 percent said they were adopting new technologies, 29 percent reported that they were developing new products, and 26 percent were working to improve data security and data protection. “Optimism is evident,” summed up Michael Umbach, chief product officer at Revalize. According to Umbach, both sustainability and artificial intelligence (AI) are crucial to manufacturing now and in the future. He pointed out that the current administration has placed “significant emphasis on AI as a cornerstone for America’s economic and national security.”

Read more at ASME

Auto Execs Say Flexibility Key In Tariff Turmoil

A chaotic global business environment fueled by tariffs between the U.S. and its major trading partners has inspired a quick-thinking mindset among automakers, according to representatives from Rivian and Toyota Motor North America.

During a panel discussion at AutoTech2025, Chris Nevers, senior director of global policy development for Rivian, stressed the importance of being nimble as long as trade policies remain in flux. He said it’s important to be ready to respond but also not overreact and stay on course as much as possible.

For Toyota, the automaker has streamlined its coordination and communication process companywide, said Adam Farris, director for international trade and supply chains for Toyota Motor North America. “Our ability to more quickly share that information with the right people within our company and with our stakeholders in different equities, get feedback, analyses, has really quickened,” Farris said. It has become a necessity as tariffs “are certainly a cost to our industry,” he added.

Read more at Automotive Dive

The Five X-Factors That Distinguish Real Leaders

Leadership isn’t just about making decisions and steering the ship anymore. It’s about being the kind of person others will follow into uncertainty — especially in the world of new ventures, where uncertainty is guaranteed. And yet, even the most intelligent, well-prepared leaders often fail. Why? Not because they lack drive or knowledge. But because they underestimate the invisible forces that shape how leadership actually works. These forces — call them X-Factors — operate in the margins: between vision and execution, between public wins and private choices. Most leadership breakdowns aren’t dramatic implosions. They happen slowly.

1.     Timing Is Everything (and You Don’t Control It).

2.     It’s Not Just Business — It’s Always Personal.

3.     Know How You’re Built (DNA v. Destiny).

4.     If Everyone Thought Like You, You’d Have No Employees.

5.     Build Your Own Core Leadership Team (Not Just a Company).

These five X-Factors won’t show up in an MBA course. But they are the difference between short-term control and long-term trust. Between burnout and balance. Between leading a company—and becoming the kind of leader others will choose to follow.

Read more at Chief Executive

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For information on advertising in this and other CI publications contact Harold King (hking@councilofindustry.org)

2024 was a rough year for the largest manufacturers in the United States, but It’s not as bad as it looks. The 2025 IndustryWeek U.S. 500 list of the largest publicly held manufacturing companies in the country is heavily skewed by a handful of special cases that posted massive losses and dragged down the entire industry. Results reflect corporate performance for 2024, and while last year was a great one for manufacturing, it was probably better than the index numbers indicate. With those warnings, let’s get the numbers out of the way.

• Revenues: $6.37 trillion, up 0.86% from 2023
• Net income: $496 billion, down 12.8% from 2023

Taking out some of the big outliers, 2024’s results were very mildly positive. More than half of companies (55%) had higher sales last year than in 2023, and 53% had higher profits. As noted above, sales for the overall group grew slightly. That increase came mainly from raising prices on goods, but some industries had higher volumes of sales as well.

Read more at IndustryWeek

Manufacturers are facing uncertainty on a variety of fronts. Rapidly shifting tariff policies, supply chain disruptions, fluctuating demand and rising raw material costs are likely among the factors creating shaky ground for your business. But two proven financial planning tools can help you better navigate the instability: rolling forecasts and financial modeling.

1.     Rolling Forecasts - Many manufacturers rely on traditional static budgets. These budgets are typically created toward the end of the preceding fiscal year, based on the company’s current data. They’re often regarded as “set it and forget it.” That may be all that’s required for smaller, more stable businesses; however, manufacturers often fare better with rolling forecasts, which facilitate greater ongoing control over finances. Grounded in current information, rolling forecasts take a continuous and more reliable approach. The figures are regularly revised as new conditions come into play, enabling more agile responses.

2.     Financial Modeling — also known as scenario planning — can provide valuable guidance amid evolving circumstances by testing how various assumptions are likely to unfold. It’s particularly useful when weighing upcoming initiatives, such as capital asset purchases, new projects or business expansion, that require a hefty investment and affect cash flow. To model the impact of different tariff policies, for example, first identify all the countries that are part of your supply chains, whether you deal with those countries directly or indirectly through your suppliers, and the applicable tariffs. With this information, you can develop a financial model to project how various sourcing scenarios would affect your finances.

Read more at Dannible & McKee

“Smart” manufacturing’s value is very much being realized, according to the newly released results of a late summer/early fall 2024 Deloitte survey, with respondents reporting up to 20% improvement in production output, a 20% gain in employee productivity, and 15% more in unlocked capacity.

The respondents—600 executives from U.S.-based or operated companies with annual revenue of $500 million or more and with over 1,000 employees—also reported that they had prioritized investment over the next two years in data, with 40% investing in data analytics, 29% in cloud computing, 29% in AI and 27% in IIoT, according to the Deloitte smart manufacturing and operations study, titled “Navigating Challenges to Implementation.”

While the study showed the C-suite is realizing value from the past several years of smart manufacturing investments, many are still facing significant challenges in managing complex digital transformations as they contend with operational risks, talent shortfalls and cybersecurity preparedness, according to Deloitte.

“The smart manufacturing journey is still emerging, but its value is undeniable. Our survey shows that most responding manufacturers agree with the need to invest in smart manufacturing but require help navigating operational complexities to see meaningful results,” Tim Gaus, Deloitte’s smart manufacturing business leader and principal, said in a Deloitte release.

Read more at Smart Industry

"Gemba" is a Japanese term meaning "the real place," specifically where value is created and challenges are most clearly observed. Unlike the superficial 1990s management practice "management by walking around" (MBWA), a genuine gemba walk is purposeful, involving active engagement and focused inquiry.

It emphasizes discovering and replicating the root causes of success, turning isolated high-performance moments into sustained excellence.

During a recent gemba walk, an operator revealed that frequent, brief equipment stoppages of just one or two minutes weren't recorded as downtime. Management’s data only included interruptions lasting over five minutes, leaving critical gaps in their understanding. As a result, leadership had inadvertently been trying to solve the wrong problem. Leadership had focused on the largest visible problem from the data, a mechanical failure.

The larger, real problem, however, was a material feed issue that required more direct experience to understand. Gemba provided the complete picture that enables leaders and operators to address the real loss. This experience underscored a crucial insight: True clarity comes from directly engaging with the shop floor—where value creation and real challenges coexist—not from remote dashboards or meetings. Only through firsthand observation and genuine interaction can leaders uncover insights essential for unlocking their operation’s full potential—their “super performance.”

Read more at IndustryWeek

In-wheel hub motors, first used by Ferdinand Porsche in 1900, offer advantages such as direct power transmission, increased space and reduced drivetrain losses, but have yet to become mainstream in electric vehicles. Renault plans to use them in the upcoming 5 Turbo 3e for better responsiveness, while Hyundai's Uni Wheel project aims to incorporate hub motors across various vehicle types. Challenges include increased unsprung mass and exposure to harsh conditions.

Having the motors in the wheels seems like a great way to make more room in the vehicle. This can either allow for a bigger battery to be used, or it can simply be a way to increase the level of cargo or passenger room in the cabin. Hub motors would also simplify EV platforms and make subframe designs considerably simpler, too. This lower complexity would make them cheaper to manufacture and also facilitate platform modularity by making it easier to vary the wheelbase and track width without requiring modifications to many other components. In other words, if you don't have to make room for motors somewhere in the middle or body of the car, you get a lot more freedom in terms of design.

Read more at Inside EVs

Taiwan's Foxconn and U.S. artificial intelligence chips maker Nvidia are in talks to deploy humanoid robots at a new Foxconn factory in Houston that will produce Nvidia AI servers, two sources familiar with the matter said. This would be the first time that an Nvidia product will be made with the assistance of humanoid robots and would be Foxconn's first AI server factory to use them on a production line, the sources said.

A deployment, expected to be finalised in the coming months, would mark a milestone in the adoption of the human-like robots that promises to transform manufacturing processes.

Foxconn is developing its own humanoid robots with Nvidia and has also trialed humanoids made by China's UBTech. The sources said it was not clear what type of humanoid robots are being planned for use in the Houston factory, what they will look like or how many will be deployed initially.

They said the two companies are aiming to have the humanoid robots at work by the first quarter of next year when Foxconn's new Houston factory will begin production of Nvidia's GB300 AI servers.

Read more at Reuters

The chemical industry has seen significant developments in efforts to decarbonize, such as the opening of the first commercial e-methanol plant by European Energy in Denmark and the launch of the first large-scale electric steam cracker by BASF, SABIC and Linde.

The industry also provides many key components for the energy transition and could become a lower-carbon powerhouse enabling circularity, according to a report from Systemiq and the Center for Global Commons.

But these are rare examples of disruptive green innovation in an industry that remains heavily reliant on fossil fuels. The sector accounts for 5-6% of global greenhouse gas emissions – running a close third behind steel and cement. The $3.5 trillion industry produces primary chemicals such as ammonia, methanol and ethylene, which are omnipresent in our daily lives: they are in 96% of manufactured goods in sectors ranging across healthcare and agriculture to construction, transportation and textiles.

Read more at Reuters

Robots today are multitasking powerhouses. They can handle mind-numbing repetition with laser precision, brave environments too dangerous for humans, and process mountains of data in the blink of an eye. They don’t need rest, snacks, or even motivation. But despite all that, there’s one thing that never fails to win us over: robots that dance. And no one knows that better than Boston Dynamics.

The trailblazing tech company has racked up millions of views with its choreographed robot routines that are part performance, part product demo, and 100% mesmerizing. Most recently, Boston Dynamics turned heads again when a team of Spot robot dogs strutted onto the America’s Got Talent stage, proving once more that when robots dance, the world watches.

Read more at Plant Services

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Briefs

Half of CEOs Want New AI Roles. What IBM Says Companies Can Do To Prepare – HR Executive

MEP Programs At Risk In Funding Showdown, Advisors Warn – Industry Week

Why Factories Are Having Trouble Filling Nearly 400,000 Open Jobs – NYT

PurposeEnergy’s New Biogas Plant In Vermont Transforms Food Waste Into Renewable Energy – Plant Services

Employee Ownership Could Help Solve A MAnufacturing Crisis – IndustryWeek

How are Tariffs Effciting Manufacturers? –MarketPlace

Northrop Grumman Challenges Engineers and Proves Value with Digital Design – IndustryWeek

How To Get AI To Love Your Brand – Forbes