Why We're Betting on Manufacturing

Jeff Immelt
Chairman and CEO at General Electic (GE)


America can turn a slow recovery into a strong comeback, one that
grows our economy and firmly reestablishes our country as a powerhouse
of ideas and production. The key – and what will determine the winners
and losers of an exciting new era – is our willingness and ability to
lead the next “big waves” of productivity.

There are four new drivers of productivity, and success in each
depends on the technology and talent we develop. The first is how the
sheer volume and increased access to shale gas in regions around the
globe is changing the energy debate and the balance of energy power.
It would require real infrastructure and pipeline integration between
Canada, Mexico and the U.S., but North America could achieve energy
independence within 10 years. The second driver for dramatically
increased productivity is applying the lessons of social media to the
industrial world and building what we call the Industrial Internet. By
owning and connecting the analytical layers around industrial products
– and using real time data to extract real time knowledge – we can
improve asset performance and drive efficiency. The third driver is
speed and simplification because the only way to serve our customers
better and compete in a complex world is by working faster and
smarter. The last productivity driver, and related to the other three,
is the evolution of advanced manufacturing. Manufacturing excellence,
forgotten for too long, is once again a competitive advantage.

Today, we are convening a forum in Washington, DC to discuss the
future of manufacturing and its impact on the economy. It’s an
exciting time; we can reverse a trend where companies outsourced
critical capabilities in their supply chain and focused too much on
cheap labor rather than speed, innovation and market access. Now,
advanced manufacturing — both imbedding technology into products and
processes and creating the highly skilled workforce that can support
these efforts — and other new innovations in manufacturing are
changing what we make, where and how we make it, and even who makes
it. Large or small companies that invest in their own capabilities and
“own” or control a local supply chain have a competitive advantage as
they develop their next breakthrough.

Historically, we’ve manufactured jet engine components mostly by
casting, stamping and cutting steel and alloys. Now, through 3D
printing, or additive manufacturing, we can “print” complex parts
layer by thin layer. At GE Aviation some of our newest jet engines
will have printed combustion system components and other parts inside,
reducing engine weight and saving our customers money.

Now is the time to bring efforts like this to scale. The rise of
analytics and software in the industrial world only multiplies the
opportunity in front of us. America must capitalize. If we do, we can
create new businesses and new industries. Advanced manufacturing will
change not only the way we build complex machines but the entire
competitive landscape.