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🚨In the News

Nippon Steel just dropped $14B in their acquisition of US Steel.

But here's what caught my eye… $3.1B earmarked for the Gary, Indiana mill. That's not maintenance money. That's "we're building something completely different" money.

Having spent time in Indiana plants, I can tell you there's incredible manufacturing talent sitting in places like Gary just waiting for the right investment and tools. This could be a masterclass in how to revitalize industrial communities - or a very expensive lesson in what happens when you underestimate Midwest work ethic.

Either way, it beats watching another plant close because "the numbers don't work." Sometimes the numbers work when you actually invest in making them work.

Curious to see if they bring modern automation and smart manufacturing practices, or just throw money at old problems. The difference will determine whether this is transformation or just expensive nostalgia.

🏭 Manufacturing Minute

Here's a question that'll make your procurement team squirm:

When did we decide that innovation should come with a 47-page RFP and a six-month approval process?

I was talking with a plant manager last week who told me they've been waiting eight months to get approval for a $15K automation solution that could save them $200K annually.

The problem?

Their procurement process treats every vendor like they're buying a nuclear submarine.

Meanwhile, down the hall, his maintenance tech downloaded an open-source monitoring solution, connected it to their PLCs over lunch, and identified three energy waste patterns by the end of the day. Total cost: $0. Total bureaucracy: None.

The Defense Contractor Trap

Most manufacturing companies have accidentally adopted what I call the "Defense Contractor Model" of procurement:

• Exhaustive RFPs that take months to create

• Requirements documents longer than War and Peace

• Vendor qualification processes that would make the Pentagon jealous

• Risk-averse decision making that prioritizes covering your ass over solving problems

This made sense when you were buying million-dollar equipment that would run for 20 years. It makes zero sense when you're trying to implement digital solutions that iterate monthly.

The Open Source Alternative

Compare that to how innovation actually happens in 2025:

• Rapid prototyping and testing

• Collaborative development with multiple partners

• Quick pivots based on real-world feedback

• Solutions that improve continuously, not just at purchase

Think about how Tesla builds cars versus how Ford did in 1995. Tesla treats suppliers as innovation partners. Ford treated them as interchangeable commodity vendors.

The Health Insurance Parallel

Actually, the best comparison might be health insurance. You know that feeling when your doctor recommends a simple, effective treatment, but your insurance company says "No, try these three other things first"?

That's exactly what happens when your procurement process forces you to go with the "approved vendor" who charges 10x more for half the capability, instead of the scrappy startup that actually solves your problem.

Your engineers know what they need. Your operators know what works. But your procurement process treats them like they're trying to buy a yacht with company money.

Building a Collaborative Ecosystem

Here's what smart manufacturers are doing instead:

Start Small, Scale Smart: $5K pilot projects don't need the same approval process as $500K installations.

Partner, Don't Purchase: Build relationships with solution providers who understand your challenges, not just your budget.

Measure Outcomes, Not Paperwork: Track how fast you can implement solutions, not how many forms you filled out.

Trust Your People: Your engineers didn't get their degrees from a Cracker Jack box. Let them solve problems.

The Real Cost of "Risk Management"

Every month you spend in procurement hell is another month your competition gains ground. Every innovative vendor you scare away with your Byzantine process is another solution you'll never see.

The biggest risk isn't picking the wrong vendor. It's moving so slowly that the market passes you by while you're still in committee meetings.

Bottom Line

Manufacturing is entering an era where agility beats perfection. Where collaboration beats control. Where trust beats bureaucracy.

Your procurement process should be a competitive advantage, not a self-imposed handicap.

Time to ask yourself: Are you building partnerships or just purchasing products?

Because if it's the latter, you're already behind.

What's the most frustrating procurement experience you've had? Hit reply and tell me about it.

P.S., Whether you're trying to make sense of Industry 4.0, struggling with legacy systems, or just need a sounding board from someone who's navigated similar waters, let's talk. Book Your 30-Minute Strategy Call →

P.P.S., if you are a nerd (like me), the next installment of my Manufacturing-themed D&D comic is out! See it here: