Ambassador Event: The Future of Emerging Manufacturing

Cobotics, location and a connected regional ecosystem are shaping manufacturing in Greater Phoenix

Greater Phoenix has been a manufacturing hub since Motorola opened its first Arizona facility in 1949. Since then, investment in the local industry has skyrocketed, and robotics, collaborative robots, and AI are changing the trajectory of the region’s future.

On Oct. 20, the Greater Phoenix Economic Council (GPEC) hosted a panel of local leaders at an Ambassador Event to discuss the future of emerging manufacturing, alongside the release of a new GPEC report on the industry.

The panelists were:

• Shubhayu Chakraborty, Chief Operating Officer, GTI Fabrication
• Chris Janson, President, Mack Halo Vista
• Jeremy Sario, Customer Application Engineer, Schneider Electric
• Moderator: Christine Mackay, President & CEO, Greater Phoenix Economic Council

Cobotics, AI and the evolving workforce

Cobotics, or collaborative robotics, are designed to share a workspace with people. As robots and cobots take on more tasks, jobs are shifting from direct manufacturing to oversight of the machines performing the operations. GTI has engaged in the use of robots and cobots alongside its employees. Chakraborty said that as AI takes on more of the routine work, engineers will spend less time producing designs themselves and more time guiding the technology and evaluating next steps.

Almost every piece of equipment on a manufacturing site is now connected and producing data. Robots and artificial intelligence create new efficiencies by automating manual work and cutting energy costs. As AI takes over tasks like drafting plans and producing specs, the role of employees will shift to working closer with customers on their needs, and gaining better insights about production performance to then act on.

"We're not going to lose the workforce,” Sario said. “We have to shift our skill set to adapt to the AI.”

Explore report here

Proximity strengthens the ecosystem

Every new addition to the supply chain adds to the value for companies operating in Greater Phoenix. When suppliers and customers are close by, companies can adjust products quickly, send their own teams to fix quality issues, and avoid the delays of working across time zones with overseas partners. Proximity also sparks innovation, much like Silicon Valley’s development being driven by companies building on the technology across the street from one another or Hsinchu Park in Taiwan facilitating collaboration between TSMC and its suppliers.

Mack Halo Vista, a $7 billion master-planned development spanning 2,300 acres adjacent to TSMC Arizona, made a bet that Greater Phoenix is ready for this type of technological cooperation. With nearly 30 million square feet of industrial, manufacturing, office, retail, residential and educational spaces, the project will serve residential, employment and corporate needs.

“I think of the holistic ecosystem that all of those companies could benefit from by being in close proximity to the [company] that’s making chips,” Janson said.

Why manufacturers choose Greater Phoenix

In addition to the legacy of semiconductor and advanced manufacturing activity that started with Motorola and advanced with companies like Intel, Microchip Technology and ASM, the region has built-in advantages ranging from climate to government cooperation.

The consistent weather and lack of natural disasters are important for operations running 24/7 periods, as downtime leads to decreases in production. Additionally, state and local leaders have planned ahead for infrastructure needs, with providers like Arizona Public Service and Salt River Project building energy and water capacity and bills like Prop 479 ensuring long-term freeway and highway access.

Greater Phoenix has a full set of operational needs in one place. Manufacturers find customers and suppliers close by, skilled labor and a growing workforce, access to major Western markets in the U.S. and international markets like Mexico, and reliable transportation networks to ship their product easily. Both GTI and Schneider Electric chose Greater Phoenix for these reasons.

“Greater Phoenix checked all four, so that’s why we’re here,” Chakraborty said.

Looking ahead, the panelists see room for Greater Phoenix to grow in bioscience, aerospace and defense, and quantum computing while building a strong chip supply chain as more overseas suppliers expand to Arizona and the United States.

“If you have great results, people will want to come here,” Chakraborty said.