Editor’s note: Welcome to So That Happened, our editors’ takes on things going on in the manufacturing world that deserve some extra attention. This will appear regularly in the Member’s Only section of the site.
Things Could Get Chippy at 3M
Since taking over at 3M Co. a year ago, Chairman and CEO Bill Brown has preached about the need to regenerate the company’s organic growth engine, including by launching new products at the rate the conglomerate used to. At the recent Bank of America Industrials, Transportation & Airlines Key Leaders Conference, Brown spoke of another opportunity to goose 3M’s top line.
Homing in on potential paths for 3M’s transportation and electronics group to grow, BofA analyst Andrew Obin asked Brown about the massive chip-related projects being built in Arizona. Might the need for Made-in-the-U.S.A. inputs there be a driver for 3M?
Brown said that, yes, his team has a good opportunity to take part in the chips boom. Making materials for the semiconductor sector is not a big part of the 3M’s business “but it’s significant and it’s growing.” Capitalizing on the manufacturing that Taiwan Semiconductor and Intel will bring, he added, will take “alliances, partnerships, trade associations” and more—as well as some big 3M investments in production and lab capacity.
“But it’s something you’d consider?” Obin followed up.
“Absolutely,” Brown replied.
—Geert De Lombaerde
Tell Us About Your New Apprenticeships
In April, President Donald Trump signed an executive order calling to “protect and strengthen registered apprenticeships and build on their successes … to unlock the limitless potential of the American worker.”
But we’ve heard of a few manufacturers stepping up, especially if they can find government funding for their efforts. Wall Colmonoy, a foundry in New Mexico, just announced four state-funded three-year furnace manufacturer apprenticeships in partnership with the University of New Mexico-Valencia and the state’s Department of Workforce Solutions.
And the raves are rolling in. “I really like learning and what I do,” apprentice Adrian Fisher said in a press release. “And as a bonus—I get to play with fire every day, in a safe way!”
Spirit, good humor, initiative: We approve.
Is your company considering or in the process of implementing an apprenticeship program? If so, we want to hear from you for possible future coverage. Also, check out our scholarship page and send any additions to [email protected]
—Laura Putre
Hackers bring AI-powered cybercrime tools to the fight
The threat of cybercriminals using AI to fuel attacks can sound like futurist alarmism akin to AI-powered humanoids taking away jobs on the shop floor. While we haven’t seen the robots yet, we’re getting some evidence that the AI cybercrime threat is real.
Cybersecurity firm Dragos today released their ransomware analysis for Q1 2025, and hidden among the weeds of highly technical breakdowns and geographic analyses are some unsettling reports of specific ways threat actors leverage AI.
A threat group named FunkSec deployed sophisticated AI-powered malware that uses code obfuscation, modifying itself to confuse humans or security software scanning for malware, and intermittent encryption, which means stealing and encrypting data in portions so small that security software might not recognize what’s happening.
Ransomware groups also leverage AI tools for sophisticated phishing campaigns, targeting individuals and personalizing phishing emails to reflect the target’s roles, interests and communication styles.
Read: the AI gets to know you, makes the phishing email seem relevant to what’s going on in your daily work life and therefore more credible than less-sophisticated phishing attempts.
One specific threat group called Black Basta used these AI-assisted social engineering attacks to even impersonate IT team members using Microsoft Teams with “linguistic fluency and convincingly replicated internal communications.”
The report cites one significant manufacturing-specific cyberattack this year, against National Presto Industries Inc., that on March 1 reported via Form 8-K filing with the SEC a cyberattack that impacted “shipping and receiving, some manufacturing processes, and various other back-office functions” and could have material repercussions.
—Dennis Scimeca
A Manufacturing Quality Report
ETQ, part of Hexagon’s Manufacturing Intelligence division, recently released the results of the 2025 Pulse of Quality in Manufacturing survey. Respondents include over 750 senior-level quality, safety, operations and compliance professionals in the U.S., U.K. and Germany.
- 30% of respondents reported product recalls/defects to be the biggest impact of poor quality to their organization
- 75% of manufacturers reported experiencing a product recall in the last five years, up from 73% in 2024
- 47% attributed the most recent recalls to supplier issues
- 43% cited internal action
- 48% of manufacturers report the cost of rectifying their most recent product recall to be between $10 million and $50 million
The survey shows 60% of manufacturers plan to increase their quality spending in 2025. Increasing revenue, improving compliance and strengthening supply chain were reported as the top three business drivers for quality investments.
See even more manufacturing quality statistics by viewing the full report.
—Anna Smith
Modine Commits to Cool Investment in Mississippi for Data Centers
Also investing in technology-related capacity is the team at Modine Manufacturing Co. President and CEO Neil Brinker said Monday that the Wisconsin-based maker of heating, cooling and ventilation gear will put more than $38 million toward an upgrade of one of its two plants in Grenada, Miss.
The investment will convert manufacturing capacity to make data center chillers starting this summer. Modine also will grow its testing lab in Grenada and its investments, which will unfold between now and the end of 2028, will create more than 450 jobs.
Data-center sales were a big factor in growing fiscal fourth-quarter sales at Modine’s climate solutions group to $356 million, an increase of 28% from early 2024. Operating profits grew even more quickly, climbing 45% to $61.5 million. With a strong order book and what Brinker calls a “significant funnel of future opportunities,” investing $38 million seems like a solid bet.
—Geert De Lombaerde
United Alloy to Expand Dayton-Area Plant, Hold New Opening Ceremony
United Alloy announced today it would expand its Union, Ohio facility to better support fuel tanks for backup power systems and HVAC plenums. Like Modine’s investment above, those fuel tanks and HVAC parts are destined for future use in data centers.
The $48 million expansion will more than double the site’s size and workforce, adding 350,000 square feet and 250 jobs to a project anticipated to end up at 532,000 square feet with 400 employees once fully staffed.
In a statement, United Alloy CEO said she was impressed with the workforce Dayton had to offer and that the new facility would supply a burgeoning industry. “With the demands we’re seeing in the data center industry, we need more space and talented staff — Dayton was the obvious place to expand,” she said.
The facility, which opened in February, will host a “grand opening” “non-traditional ribbon cutting ceremony” June 10. Reportedly, “‘sparks will fly’” (quotes original) at said ceremony. The unusual phrasing, and United Alloy’s status as a metal fabrication and welding company leads this editor to expect angle grinders or similar device may be involved. The company will host a job fair after the ceremony.
—Ryan Secard
Kraft Heinz Looking to Sell?
A.1. Steak Sauce from Hormel? General Mills Singles American cheese? Lunchables by Smucker’s? Anything could be on the table now that food giant Kraft Heinz is considering “strategic transactions to unlock shareholder value,” you know, corporate speak for make-me-an-offer-for-any-classic-brand.
“Our goal has always been to make high-quality, great-tasting food for all and to keep consumers at the forefront of all we do, enabling us to drive profitable long-term growth and value creation,” said Kraft Heinz CEO Carlos Abrams-Rivera. “Consistent with this goal, over the past several months we have been evaluating potential strategic transactions to unlock shareholder value.”
The decision to potential sell some of the company’s iconic brands come as investing powerhouse Berkshire Hathaway loses interest. Warren Buffett, who orchestrated the merger of Kraft and Heinz in 2015, two years after buying Heinz and taking it private, informed Kraft Heinz leadership that his Berkshire Hathaway holding company no longer wants to hold its two board of directors seats at the food manufacturing company, allowing Kraft Heinz to eliminate two board seats as it considers brand sales.
In its most recent regulatory filing, Berkshire Hathway notes that its 325.6 million Kraft Heinz shares have lost $2.1 billion in value over the last 12 months, an 18% decline.
The food company did not offer a timeline for any potential brand sales, and it did not take some of the typical steps that companies take when they enter fire-sale mode, such as hiring outside financial advisors to guide sales.
—Robert Schoenberger
