Center for Industrial Research and Service, Iowa State University

2014 Iowa Industry Survey Report

Machinery Manufacturing (NAICS:333)

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Survey Sample Summary

Survey Sample

Response rate 15.7%

Target Industry

Economic Development Administration-University Center Program

Iowa Advanced Manufacturing Innovation Network (AMIN)

2014 Machinery Manufacturing Industry Survey

Center for Industrial Research and Service

Iowa Machinery Manufacturing Subsector.

NAICS Code: 333-Machinery Manufacturing

Iowa State University’s Center for Industrial Research and Service (CIRAS) surveyed the Iowa machinery manufacturing industry to

understand their business characteristics and orientation toward technology adoption, product development, process development,

process upgrades and continuous improvement. Data was collected in the Fall of 2014 with an online survey targeting the machinery

manufacturing subsector (NAICS Code: 333).

The results of the survey are contained on the following pages together with your individual response for comparison purposes. Your

company specific information is noted on all figures where you provided a response.

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Executive Summary

Figure 1: 71% of the companies have been in business for more than 25 years.

Figure 2: 73% of the companies belong to the Other General Purpose Machinery, Agricultural Implement, Construction Machinery, and

Metalworking Machinery Manufacturing sectors.

Figure 3: 51% of the companies employ 50 or fewer employees.

Figure 4: 29% of the companies have no engineering employees with a bachelor’s degree.

Figure 5: 55% of the companies engage more than 10% of their employees in product development activities.

Figure 6: 17% of the companies engage more than 10% of their employees in process development activities.

Figure 7: 79% of the companies conduct product development onsite for products produced at that facility.

Figure 8: 87% of the companies conduct process development onsite for products produced at that facility.

Figure 9: 48% of the companies have used research or technical assistance financial resources funded by the state and federal agencies.

Figure 10: 81% of the companies are currently developing a new product or upgrading an existing product.

Figure 11: Over 70% of the companies have indicated 3D CAD modeling and engineering simulation as the top two technologies that could add

value to their product or reduce development risk.

Figure 12: 73% of the companies are currently developing a new process or upgrading an existing manufacturing or production process.

Figure 13: Over 65% of the companies have indicated 3D CAD modeling and advanced tooling as the top two technologies that could improve their

process design or reduce development risk.

Figure 14: The companies have a diverse sales profile.

Figure 15: 80% of the companies have a majority of their sales to companies or distributors in other U.S. states.

Figure 16: 81% of the companies have identified that the personnel they hire need additional training.

Figure 17: In the next 3-5 years, 88% of the companies have identified reducing costs through process improvements, and 83% identified increasing

sales through improved products as the top two key strategies to increase profitability.

Figure 18: 10% of the companies have identified that new products, services, and systems launched in the past have performed below expectations.

Figure 19: 73% of the companies are interested in participating in a CIRAS organized innovation summit.

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Fig 1. Number of years in business.

0%

20%

40%

60%

25 years and below 26-50 Years Over 50 Years

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Fig 2. Distribution of companies according to NAICS.

0% 5% 10% 15% 20% 25%

Mining and Oil and Gas Field Machinery Manufacturing (33313)

Engine, Turbine, and Power Transmission Equipment

Manufacturing (3336)

Commercial and Service Industry Machinery Manufacturing

(3333)

Food Product Machinery Manufacturing (333294)

Ventilation, Heating, Air-Conditioning, and Commercial

Refrigeration Equipment Manufacturing (3334)

Industrial Machinery Manufacturing (Other than Food Product

Machinery) (3332)

Construction Machinery Manufacturing (33312)

Metalworking Machinery Manufacturing (3335)

Agricultural Implement Manufacturing (33311)

Other General Purpose Machinery Manufacturing (3339)

Fraction of companies

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Fig 3. Distribution of employees.

0%

20%

40%

60%

50 or fewer employees Between 51-100 employees Between 101-250 employees More than 250 employees

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Fig 4. Engineering employees with a bachelors degree or higher.

0%

20%

40%

60%

Zero employees Between 1-5 employees Between 6-10 employees More than 10 employees

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Fig 5. Fraction of full-time employees engaged in product development.

0%

20%

40%

60%

5% or less Between 5-10% More than 10%

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Fig 6. Fraction of full-time employees engaged in manufacturing process development activities in companies.

0%

20%

40%

60%

80%

5% or less Between 5-10% More than 10%

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Fig 7. Categories that describe where most of the product development occurs for companies.

0% 20% 40% 60% 80% 100%

Products developed at another Iowa establishment owned by our

company

Products developed by a contract design firm

Other

Product developed at an out of state establishment owned by our

company

Product developed by a company we supply to

Product developed at this facility

Response rate

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Fig 8. Categories that describe where most of the process development occurs for companies.

0% 20% 40% 60% 80% 100%

Process developed by a contract design firm

Process developed at another Iowa establishment owned by

our company

Process developed by a company we supply to

Other

Process developed at an out of state establishment owned by

our company

Process developed at this facility

Response rate

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Fig 9. Research or technical assistance financial resources used by companies.

0% 20% 40% 60% 80% 100%

ISU-IPRTCA research cost sharing funds for applied R&D

SBIR/STTR

Other

ISU-IPRT Company Assistance (IPRTCA) technical assistance

University of Iowa or ISU engineering senior design projects

Iowa State University (ISU)-CIRAS technical assistance

R&D tax credit

Response rate

12

Fig 10. Companies considering or developing a new product.

0%

20%

40%

60%

80%

100%

Yes No

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Fig 11. Technologies identified by companies that could add value to product or reduce development risk.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Autonomous/ Self-aware Machinery

Industrial Internet (e.g. Machine to machine connectivity, Industrial control

systems, Supervisory control and data acquisition-SCADA)

Machine Sensing Technologies (e.g. Machine Vision, Radar)

Big Data /Data Analytics (e.g. Real time data gathering and analysis,

Predictive manufacturing)

Additive Manufacturing - Product based 3D printing or rapid prototyping

High Performance Materials (e.g. Metals, Polymers, Composites, Ceramics)

Virtual Reality and Simulation - Product testing

Product Testing (e.g. Non-destructive inspection, Destructive testing, Non-

contact scanning / metrology)

Basic Computer-Aided Design (3D models)

CAD Model Engineering Analysis Tools (e.g. Finite Element Analysis (FEA),

Metal formability, Plastic processing, Sheet metal design package, Assembly

analysis)

Fraction of Companies

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Fig 12. Companies considering or currently developing a new process.

0%

20%

40%

60%

80%

100%

Yes No

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Fig 13. Technologies identified by companies that could improve process design or reduce development risk.

0% 20% 40% 60% 80% 100%

Autonomous/Self-aware Machinery

Trainable and/or sharable space robotics

Virtual Reality and Simulation - Product testing

Machine Sensing Technologies (e.g., Machine Vision, Inline

Product inspections, Vibration Accelerometers/Load cells)

Additive Manufacturing - Process based 3D printing or rapid

prototyping (e.g., to produce jigs, fixtures, gauges and tooling)

Integrated productivity monitoring and process improvement

software solutions

Material Handling Technologies

Industrial Automation (equipment, methods)

CAD Model Engineering Analysis Tools (e.g., Plastic processing

analysis, Assembly analysis)

Advanced Machining and Tooling Technologies

Basic Computer-Aided Design (3D models)

Response rate

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Fig 14. Annual sales profile of companies.

28%

42%

62%

22%

32%

20%19%

10% 5%12%6%

1%10% 1%1%9% 9%

11%

0%

20%

40%

60%

80%

100%

Your largest customer Your second largest customer Your third largest customer

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1-10%

11-20%

21-30%

31-50%

51-100%

Unsure

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Fig 15. Distribution of company sales.

0%

20%

40%

60%

80%

100%

To companies or distributors in Iowa To companies or distributors in other U.S.

states

To companies or distributors

internationally

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Fig 16. Challenges faced by firms related to workforce.

0% 20% 40% 60% 80% 100%

Other

Our need for development/manufacturing labor is intermittent.

There are not enough people in the workforce with the skills

needed to enable us to meet our objectives.

We have difficulty recruiting skilled labor for

development/manufacturing at this location.

The personnel we hire need additional training.

Response Rate

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Fig 17. Key strategies to be pursued by companies to increase profitability in the next 3-5 years.

0% 20% 40% 60% 80% 100%

Increase sales to local, state, and/or federal

government

Other

Increase export sales

Increase sales through enhanced marketing

Reduce costs through improved purchasing

Increase sales through improved products

Reduce costs through process improvements

Response rate

20

Fig 18. Success of products, services, and systems launched by companies.

0%

20%

40%

60%

Above expectation Met expectation Below expectation Not Applicable

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Fig 19. Distribution of companies interested in attending the summit.

0%

20%

40%

60%

80%

Interested and will attend if schedule

allows

Not interested Interested, but unable to attend. Please

follow up with me

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