THE FUTURE TODAY

UI LABS Annual Report 2016

THE FUTURE TODAY:
A LETTER FROM OUR
CHAIRMAN AND OUR CEO

At UI LABS, we are constantly looking beyond the status quo to determine what’s next—the tool that will change the way manufacturers manage their supply chains, the technology that will halve the time that streets are torn up for construction, and even the new business models that unlock the value of data.

Advances related to internet-connected devices, big data, and supercomputing will benefit first movers and early adopters. The positive effects will ripple outward from the cities, regions, and countries that lead the way.

In 2016, our network of leaders in manufacturing and infrastructure began to see outcomes as the first rounds of UI LABS projects finished. These projects are bringing unlikely partners together to validate new technologies and solve major digital industrial challenges.

We are demonstrating how augmented reality can be used to translate work instructions, making it easier for manufacturing workers to learn new tasks. Our water infrastructure project is collecting data to measure the effectiveness of different methods of flood prevention. Our partners are creating new software tools to reduce the complexity of designing with advanced composite materials, and to eliminate waste and time in setting up new machining processes.

These examples are just the start. Dozens of projects closing over the coming year will show where digital technology can take us, pulling the future forward by drawing on the resources of the brightest minds and most determined innovators across industry, academia, startups, and government. We are also enhancing our Innovation Center to enable real-world learning and experimentation on an active production line, developing new city partnerships to extend the impact of our projects, and creating new alliances among the world’s leading industrial and tech companies and cutting-edge startups.

This is collaboration in action. This is a new model for impact. This is the future today.

Warren E. Holtsberg
Chairman

Caralynn Nowinski Collens
Chief Executive Officer

A TRUSTED GUIDE TO INNOVATION

At a time when rapidly evolving market conditions make it imperative to reinvent our approach to R&D, UI LABS is a trusted guide to innovation for courageous leaders with a mandate to redefine the future of their industries. We design collaborative experiences, leveraging collective talent and resources, to validate new technologies and business models and solve industrial challenges. Together, our partners demonstrate transformative solutions that have industry-wide impact—today and for generations to come.

POSITION:

THE FUTURE OF R+D

For decades, the percentage of R&D funding from the federal government has been decreasing, many corporate R&D centers have diminished in size and scope, and our nation’s innovation engine—universities and startups—has struggled to connect with both public and private sources of investment in many parts of the U.S.

Our country needs a new partnership model that brings all of these players together, directs resources to the right problems, and catalyzes breakthrough solutions. Without new products, processes, and businesses emerging on a steady basis, our economy will stagnate.

UI LABS is applying this model to manufacturing and infrastructure, with 300+ partners at the table. We invite courageous leaders to join us.

POSITION:

THE FUTURE OF
MANUFACTURING

The United States has fallen far from its place as a global manufacturing leader in the 20th century. Scores of manufacturing jobs have disappeared—more than five million since 2000. Almost no complex products are entirely made in the United States.

Still, manufacturing matters, employing nearly 10 percent of the nation’s workforce and accounting for 12 percent of its GDP. We have a legacy on which to build a new foundation and the ingenuity to reimagine manufacturing for the 21st century.

Advanced technologies and a high-skilled workforce will be key differentiators that make U.S. manufacturing the most competitive in the world, enhancing productivity, rebalancing trade in our favor, creating high-wage jobs, and generating trillions of dollars in economic wealth.

The Digital Manufacturing and Design Innovation Institute (DMDII), an innovation platform of UI LABS, has focused its efforts on areas with the greatest potential to reinvent manufacturing in the United States:

  • Design, product development, and systems engineering
  • The “Factory of the Future”
  • Agile, resilient supply chain
  • Cybersecurity for manufacturing

The global trend toward Industry 4.0 will bring about the next manufacturing revolution, whether the U.S. is involved or not. But, we have the capacity to lead this revolution, unlocking new economic value and creating new jobs. Read more about DMDII and learn how to get involved on our website.

POSITION:

THE FUTURE OF
INFRASTRUCTURE + CITIES

America’s infrastructure is crumbling. Tragedies like bridge collapses and dam failures have underscored the human impact of chronic underinvestment.

Rebuilding roads, rail, and waterways is imperative to improve resiliency and economic competitiveness. But it’s not sufficient in and of itself—modern infrastructure is as much digital technology as it is concrete. Any large-scale effort to overhaul the nation’s infrastructure must include the integration of smart technologies.

Our water and sanitation systems need sensors and electronic controls to monitor and redirect flow. Our bridges and roads need more efficient maintenance that can be better managed with advanced data collection and analysis. Our trains and cargo need to move faster and more safely.

Rethinking the way we have invested in infrastructure as a nation is no small task, but we stand to benefit from increased safety and reliability, economic development, security, and quality of life. Read more about City Digital, UI LABS’ platform on smart infrastructure in cities and communities, on our website and in Crain’s Chicago Business.

POSITION:

THE FUTURE OF WORK

As automation and internet-connected machines become more widespread, many fear that “lights out” factories—remotely controlled to the extent that they don’t require comforts like heating and lighting—will become the norm.

The reality is that achieving productivity gains that will allow the U.S. to compete globally will be less about replacing workers and more about augmenting their capabilities through technology and training.

When increased output and efficiency of domestic manufacturing make an appealing enough business case, we could see the reshoring of entire supply chains.

Additionally, digital manufacturing and smart infrastructure have something very important in common: they require skilled workers on an ongoing basis. Hardware and software technicians and data scientists will be critical to the future of work.

UI LABS is facilitating and providing the foundations required for effective manufacturing workforce development, leveraging a network of partners and stakeholders across industry, academia, government, and non-profit organizations. Access our online “Digital Manufacturing 101” course here, and follow our portfolio of workforce development activities on our website.

UI LABS IN ACTION:
DEMONSTRATING
TRANSFORMATIVE SOLUTIONS

UI LABS provides our partners with access to new approaches, technologies, testbeds, and relationships, guiding them toward solutions that will drive innovation in their industries. Learn more about the unique role that UI LABS plays on our website.

THE COMPANY WE KEEP:
PARTNERSHIPS WITH IMPACT

Throughout 2016, the UI LABS network has broadened to include organizations that bring new industries and capabilities to the table. A few examples:

See a full list of UI LABS partners at: www.uilabs.org/partners

NEW TYPES OF COLLABORATIONS

UI LABS’ partners are discovering ways to collaborate outside of the project process, with exciting results.

OUR TEAM

See the full list of our team members on our website.

BOARD OF DIRECTORS

Warren E. Holtsberg

Chairman

Victor (Vic) R. Abate

Senior Vice President and Chief Technology Officer of GE Global Research

Henry S. Bienen

President Emeritus of Northwestern University

Caralynn Nowinski Collens

Chief Executive Officer

Ivo H. Daalder

President of The Chicago Council on Global Affairs

Eric D. Isaacs

Provost of The University of Chicago and a Professor in the Department of Physics, the James Franck Institute, and the College

Dan’l Lewin

Corporate Vice President of Technology and Civic Engagement at Microsoft Corporation

Roger L. Plummer

Retired Executive Vice President, International Engineering Consortium, and retired President and CEO, Ameritech Information Systems and Custom Business Services

Anne R. Pramaggiore

President and Chief Executive Officer of ComEd

Girish Rishi

Chief Executive Officer of JDA Software

Lawrence B. Schook

Edward William and Jane Marr Gutsgell Professor of Animal Sciences and Radiology, former VP for Research at the University of Illinois

Pedro E. Suarez

President of Dow USA

Mark Tebbe

Chairman of ChicagoNEXT, and Adjunct Professor and Entrepreneur-in-Residence at the University of Chicago Booth School of Business

Mike S. Zafirovski

Executive Advisor to Blackstone and member of the Board of Directors of three Blackstone portfolio companies

2016 HIGHLIGHTS:
BY THE NUMBERS

FINANCIALS:

UI LABS REVENUE FROM OPERATIONS:

(IN $ MILLIONS)

STATS:

60+
PROJECTS UNDERWAY
300+
PARTNERS ACROSS
34 STATES
130+
PARTNERS JOINED IN 2016 -
NEARLY 85 OF WHICH ARE
SMALL AND MEDIUM-SIZED
BUSINESSES
$6,000,000
IN EQUIPMENT AND SOFTWARE ON THE MANUFACTURING FLOOR
20
NEW JOB PROFILES RELATED TO DIGITAL MANUFACTURING PROFILED AS PART OF OUR WORKFORCE EFFORTS.
59
TEAM
MEMBERS
14
DIRECTORS ON OUR BOARD
REPRESENTING INDUSTRY, ACADEMIA,
AND NON-PROFIT SECTOR
DMDII IS ONE OF 14
INSTITUTES IN THE
MANUFACTURING USA
NETWORK
5 CITY DIGITAL PILOT
SITES ACROSS
THE CITY OF CHICAGO
300+
USERS OF THE DIGITAL MANUFACTURING COMMONS - REPRESENTING 40+ ORGANIZATIONS - WITHIN THE FIRST THREE MONTHS OF LAUNCH