Softballs in Space and Indian Motorcycle Goes For a Ride: So That Happened

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.

From Tariffs to Tech: Q3 State of Supply Chain 

68% of industry leaders say the Supreme Court blocking all tariffs would have a positive impact on their supply chain strategy, according to digital services firm West Monroe’s 2025 Q3 Supply Chain Poll, which surveyed U.S. business leaders from manufacturing, retail and supply chain/distribution industries. 

With 85% of industry leaders facing moderate or significant pressure to protect margins in supply chains, the top reason businesses cited as a positive effect from blocking tariffs is “sales or revenue would increase,” at 58%. 

“Improving inventory management” remained the top supply chain priority for Q3 at 25%, a slight jump from the 20% reported in Q2. Coming in second place for top supply chain priority is “enhancing customer fulfillment speed" at 17%, and in third place at 15% is “cost containment amid economic uncertainty.” 

72% of businesses reported increasing inventory in Q3, compared to 62% in Q2 and 78% in Q1. 

The poll also surveyed respondents on the impact of AI in their supply chains. The following are the top three reported productivity gains from AI: 

1. Improved workforce efficiency – 64% 

2. Faster cycle times – 56% 

3. Cost savings – 49% 

—Anna Smith

Vroom Vroom on Out of Here

In a world of mergers and acquisitions that often swings between trends of consolidation and spinoffs, the latter has been ascendant in recent years. Management teams have leaned—and been pushed by investors to lean—on the idea that streamlined and focused businesses make for better and more profitable stories. See: General Electric, Kellogg’s and Honeywell.

It's time to add Powersports equipment manufacturer Polaris Inc. to that list. The Minneapolis-based company’s leaders recently announced that they have agreed to sell the Indian Motorcycle business to private-equity firm Carolwood LP for an undisclosed amount. Polaris will keep a small stake in Indian, which today accounts for about 7% of its sales.

“Polaris and Indian Motorcycle both stand to benefit from this deal, which will enable each business to move faster, deliver industry-leading innovation, and lean further into our respective market strengths," Polaris CEO Mike Speetzen said in a statement. “For Polaris, the sale will further strengthen our focus on the areas of our portfolio that offer the strongest growth potential and allow us to accelerate investments in key initiatives and create wins with customers and dealers.”

Speetzen also said the deal delivers Polaris some “immediate value creation,” which is a nice way of saying that Indian has been losing money despite recently growing its market share and pushing annual sales to nearly $500 million. Polaris executives say selling Indian will boost the company’s adjusted EBITDA by about $50 million on an annual basis.

The planned sale of Indian and other recent deals could be confirmation of a rebound in deal activity. S&P Global recently noted that the value of third-quarter M&A transactions was the highest in about four years and John Mathis, a partner at Harbor View Advisors, wrote earlier this month that his team is seeing a rise in activity from potential sellers while buyers remain on the hunt. That, he said, could be teeing up a strong first half of 2026 both in terms of deals and their valuations.

— Geert De Lombaerde

As if There Weren’t Enough Reasons to be Paranoid About AI

There’s an 82% chance that a company deploying IoT networks also has AI peeking from behind the cameras, watching you. 

Verizon on October 14 published its 2025 IoT Market Insights Report, based on a survey of 500 companies. The report is unfortunately not manufacturing specific, but states that 59% of respondents from the manufacturing sector said that cost savings drove IoT deployments. Your mileage may vary. 

94% of automotive OEMs surveyed are fans of 5G, 43% of respondents said cybersecurity was their biggest challenge when deploying IoT technologies and 82% seem amenable to combining cameras with AI capabilities to “glean insights to make timely decisions.” (Manufacturing leverages this sort of technology to assess how operators move around their cells or how much they bend or stretch while conducting operations. Both forms of data inform ergonomic improvements.) 

— Dennis Scimeca 

Outer Space, Out of the Park 

A major U.S. space contractor just won a big contract to test (wait for the satisfying pop) … softballs. Element U.S. Space & Defense brought home a contract this week to certify bats and balls for USA Softball at its Belcamp, Maryland, facility.  

The 60-year-old testing company, formerly NTS Technical Systems, has been a partner of NASA since the dawn of the space program, performing centrifuge testing for the latest Mars Rover and environmental simulation for next-generation missiles, as well as launch vibration and acoustics testing.  

The 60,000-square-foot Maryland facility—one of six Element testing locations—is the site of body armor and ballistic testing for military suppliers, but also serves clients in sport-equipment manufacturing, testing high-speed ball impacts in baseball and lacrosse and fall impacts in hockey and horse-riding. 

Among Element’s big-deal (big-dill?—sorry!) clients is the USA Pickleball Association, for which it performs all certification and research and development testing.  

So, Element can help get an astronaut to Mars, but can they help Aunt Evy improve the spin on her dink shot? That’s the real test.

—Laura Putre 

An Electric Buyout

GE Vernova Inc. is leaning harder into the grid-enhancement, build-more-data-centers movement by buying out joint venture partner Xignux.

The Cambridge, Massachusetts-based manufacturer announced that it will acquire the remaining 50% stake in Prolec GE, a grid equipment supplier that produces transformers across a range of ratings and voltages. It employs approximately 10,000 workers at seven manufacturing sites, five of which are in the United States.

The purchase further boosts the company’s presence in electrification, identified by GE Vernova as its fastest-growing segment.

“This acquisition aligns with our strategic and financial objectives and is also good for our customers by strengthening our presence in North America where demand for grid equipment is growing rapidly,” said CEO Scott Strazik

The joint venture with Xignux dates back 30 years and was forged originally with General Electric in 1995. GE Vernova spun off from General Electric last year.

The $5.275 billion acquisition is expected to be funded equally by cash and debt, with a mid-2026 closing, subject to regulatory approval.

—Jill Jusko