The Pivotal moment for manufacturing & supply chains

NPA Insights, February 2025

Hi all!

Coming out of the World Economic Forum’s Annual Meeting last month, one takeaway was clear: Manufacturing and supply chains are at a pivotal moment that echoes the rise of the internet a generation ago.

Leaders highlighted how sustainability and digital innovation are reshaping production; not as competing priorities, but as complementary forces. Initiatives that drive resilience and productivity often naturally deliver environmental benefits, creating new opportunities for innovation and growth across industries.

This new industrial era is redefining value creation, where technology enhances human capabilities. This shift has profound implications for workforce development and organizational change in the digital age. The challenge now is turning this vision into scalable, long-term success.

The State of Manufacturing

The Manufacturing PMI Index expanded in January for the first time in 26 months, rising to 50.9%; a 1.7% increase from December.

The New Orders Index remained in expansion for the third consecutive month after seven months of contraction.

The Production Index rose by 2.6%.

Anticipating potential Trump-era tariffs, automakers and European food producers are fast-tracking shipments to the U.S., straining supply chains and driving up costs. In December, the U.S. trade deficit surged to a record $122 billion, with imports rising 4%.



Meanwhile, China has tightened export controls on five critical metals—tungsten, tellurium, bismuth, indium, and molybdenum—in retaliation to U.S. tariffs.

Exporters now require licenses, potentially disrupting supply chains for defense and clean energy industries. With the U.S. being heavily reliant on imports, this move could drive up prices and trigger shortages, further escalating trade tensions and underscoring China’s grip on critical mineral supplies.

On Wednesday, March 5, our Managing Director, Jurgen Frasch, will join a panel discussion hosted by Forge, exploring strategies to minimize the impact of tariffs on businesses.

Register here.

The panel will:

• Examine the impact of tariffs on supply chains, particularly for startups
• Share strategies to mitigate costs and risks
• Offer insights to strengthen and future-proof your supply chain

Boston startups and tech firms raised $424.8 million in January, a $100M increase from the $393.6M in venture funding we saw in December.

Boston Logan International Airport debuted North America's first all-electric catering truck, a step toward net-zero emissions.

Applications are open for the MassRobotics 2025 Form and Function Robotics Challenge!

Prizes range from the grand prize of $10,000 to $1,000 for second and third place, plus a $1,000 Audience Choice award. Showcase your creativity by designing robotics or automation projects that combine exceptional form and function. Open to participants worldwide; submit your applications here.



Tive, a Boston-based company, secured $40 million in its Series C funding round. Tive’s innovative tools enable companies to track the real-time status of their shipments.

Sublime Systems, the low-carbon cement manufacturer, has been awarded a $46 million federal tax credit.

Symbotic (SYM) is set to acquire Walmart’s robotics division for $200 million and enter into a $520 million agreement to enhance Walmart’s fulfillment systems, deploying Symbotic technology at 400 APD centers.

Cleantech Open applications are now live! Apply for a chance to gain valuable insights, win up to $77,500 in cash prizes, and kickstart your cleantech innovation journey!

The early bird deadline is Friday, February 28. Apply here.

OUR MONTHLY SURVEY

In our January survey, we asked which AI engine you use most frequently.

It was a close race, but the majority of respondents reported using ChatGPT (OpenAI) at 12.1%, followed closely by LLaMA (Meta) at 11.2%.

As companies aim to deliver high-quality products on time and within budget, striking the right balance between production speed, cost, and quality is essential. Different strategies can be employed to achieve this balance, depending on the specific needs and goals of your production process.

So we'd like to know:

Robotic insects are here and may be the future of farming and plant pollination.

BuzzingIntoTheFuture

(Source: Earth.com)

A private aircraft broke the sound barrier during a test flight, making it the first private aircraft to achieve supersonic speed. We'reAboutToUnlockFastTravel

(Source: Morning Brew)

A pianist developed a robotic hand that helps musicians practice passively. BreakingBarriersInMusic

(Source: Yahoo)

Drones are bringing emergency services to remote places.

JustGettingThingsDone

(Source: The Wall Street Journal)