AGMA/ABMA Annual Meeting Executive Briefing

April 11-13, 2019The Westin Kierland Resort

Scottsdale, Arizona

Attendance Demographics252 Members Attended

145 executives from AGMA attended18 executives from ABMA attended89 guests participated in the event

29 First Timers attended

The event is designed for senior management, and approximately 65% of attendees had the title President, CEO, Owner, Chair, VP, or GM

Board Updates• The AGMA and ABMA boards voted to finalize an agreement whereby AGMA will

manage ABMA, and collaborate formally on program service delivery• The AGMA National Training Center at Daley College was announced, and an agreement

was signed. The AGMA National Training Center will deliver both legacy engineering level training, and in development operator training in the 10,000 net square feet dedicated space.

• The New Motion + Power Technology Expo attendee registration launched during the event – which will be the largest event AGMA has ever held – featuring 30+ new gear exhibitors and 16+ fluid power exhibitors – with many gear companies also exhibiting electric drive solutions

• AGMA’s Emerging Technology Committee published its first white paper “Additive Manufacturing Technologies for Gears” and will hold a webinar to discuss paper on May 2 at 2:00pm.

Business as UnusualJack Uldrich, Global Futurist• Uldrich outlined his “AHA” construct to the future• Companies need to be AWARE of major disruptive changes coming such as

electrification of power transmission, autonomous driving and global demographics shifts

• Companies should be HUMBLE in their response strategy development recognizing that many leaders often don’t see the competitive threats impacting them due to ego or hubris (Steve Ballmer stating iPhone isn’t valuable because it “doesn’t have a keyboard”)

• Companies should ACT on the energy and innovation happening around them both internally (operational innovation) as well as externally (market innovation)

WORKFORCE DEVELOPMENTStan Shoun, Ranken Technical College – TAKE ACTION by focusing on skilled trades, including apprenticeship approaches – hoping and dreaming the government or agencies are going to help them is NOT a strategyDr. David Girzadas, Richard J. Daley College – a sustained commitment is required, and companies should approach local schools to ensure training is focused on actual needs.Kim Jones, Department of Labor – Money and programs supporting training and workforce development exist – contact us!Franco Dutto, Tsubaki Nakashima– A commitment to aligning strategy with the skilled trades needed, is a thoughtful effort – not just filling slots as needed. Casandra Blassingame, AGMA – AGMA taking proactive steps to support industry via new classes (one engineering, four operator), AGMA National Training Center, and the Get Into Gears program. More coming!

SURVIVING THE TRADE TORNADONate Bolin• The Administration is leveraging every single legal and trade remedy

available to them in order to address considerable global trade issues –Section 232 and Rule 301, among them.

• These approaches have impacted the market, but have mainly been absorbed by industry – with successful conclusions in Mexico, South Korea, and targeted European countries – in process.

• China and the EU are actively negotiating, and are expected to be signed before the 2020 election cycle.

Every Part Better Than the LastChandra Brown, MxD• MxD is one of the U.S. Manufacturing Institutes. It includes:

• AI-powered digital twins• Adaptive open space manufacturing projects• National Center for Cybersecurity in Manufacturing Initiatives• Building digital workforce initiatives

• MxD leverages collective expertise to solve problems too large for any one organization

• AGMA will hold the presentation portion of the SRN at MxD on May 7 during which attendees will tour the MxD manufacturing floor and see the latest in IIoTprojects

Can the US Economy Take a Licking and Keep on Ticking?Jim Meil, ACT Research • Expansion – long duration but slow growth• Main street is OK – problems in beltway, rest of world• 2019 – feels 2018 tailwinds, but a diminishing force • Watch stock market and bank credit closely

• Used equipment market & prices too

• BIG IF – if we dodge 2020 recession (30% chance) expansion can go to 2023 or 2024

• Grading the years: 2018: A | 2019: B+ | 2020: B- but with some risk

The End of Fear, and How it Will Change Durable Goods ManufacturingAlberto Moel, Veo Robotics• Robots are very good at controlled activities and still not agile. It will be many

years before they will be able to do a complex task like tying a shoe• Keep humans in the loop with Robots

• Humans are smart, dexterous, flexible and learn quickly• Trends are increasing the need for manufacturing flexibility• For many products you will never amortize the cost of full automation before you have to

change the process

• Veo Robotics’ first product is bringing perception and intelligence to industrial robots so they can collaborate safely with humans

• You should have a Blockchain plan for your company – even if it is very basic – by the end of 2019.

• Blockchain provides the decentralized infrastructural glue that ties all of the points together enabling not just individual processes or organizations but entire businesses and/or social ecosystems.

• Digital transformation is NOT about force fitting new technologies into your existing business; it is about reimagining your business model and even your entire business ecosystem.

The Blockchain Transformation of Procurement and Supply Chain ManagementJack Shaw, American Blockchain Council

Lessons in LeadershipCarey Lohrenz• Leadership is facing the challenge regardless of the potential outcome

• Be a Catalyst: Make change happen by focusing on what matters most

• Be Tenacious: Overcome your fear of failure

• Be Committed to Excellence: Prepare, Perform and Prevail to accomplish seemingly impossible missions every day

• Be Resilient: Turn adversity into success

AGMA and ABMA Leadership TransitionThe new AGMA Executive Committee is:• John Cross, Chairman, and President, ASI Drives

• Todd Praneis, TDEC Chairman, and Director of Product Development, Cotta Transmission

• Greg Schulte, Treasurer, and President, Bonfiglioli USA

• Mike McKernin, BMEC Chairman

• Jim Bregi, President, Chairman Emeritus, Doppler Gear Company

The newly elected AGMA Board Members are:• Zen Cichon, President, Innovative Rack & Gear Company

• Ruth Johnston, CEO and President, Croix Gear & Machining

• Jack Masseth, Site Manager — Howell, Meritor, Inc.

• Sara Zimmerman, Vice President, Business Development, Sumitomo Drive Technologies

The new ABMA Chairman:Ben Succop of American Roller Bearings became Chair of ABMA Gary Bourque of Koyo Corporation of USA became Vice Chair of ABMA

Foundation 25th Anniversary

• The Foundation celebrated its 25th Anniversary • The Get Into Gears Campaign launched with more than 140 downloads from 110

companies• The Foundation is supporting the development of four Operator Level training

classes• The Foundation is developing a Capital Campaign that will support the newly

announced AGMA National Training Center at Daley College, including financial and in-kind donations

• The AGMA Foundation continues to provide $50,000 in scholarship assistance every year

NetworkingThe Annual Meeting featured a variety of networking opportunities – including golf and corn hole tournaments, a casino night as well as traditional receptions and dinners.

2020 AGMA/ABMA Annual MeetingMarch 19-21, 2020

The Grand Floridian Resort, Disney World