3M's Automation Plans + Industrial M&A and Media Fragmentation

Hey there, thanks for joining the Industrial Innovation Advocate this last day of meteorological winter. There is a lot to navigate in the world right now but we try to help by spotlighting things that business leaders and marketers in advanced manufacturing and industrial tech companies would find interesting, in an amongst all the noise. (Want to sponsor this newsletter? Contact me.)

This week, 3M outlines their approach to manufacturing and supply chain automation in service of operational excellence KPIs, Axios highlights an increasingly fragmented media landscape, and a look at whether we're turning a corner on M&A in industrial segments.

Media Fragmentation Complicates Communications Campaigns

The continued fragmentation of the media landscape is making it more important than ever to really know your ideal customer profile and the people that that influence that ICP, and then to orchestrate marketing and communications efforts across multiple channels. A recent study conducted by Axios with Gravity Research reinforced that audience fragmentation is likely to continue "as newsrooms shrink, social media sites fluctuate, and personal news and information bubbles begin to form with Substacks, podcasts and algorithmic social media feeds."

The big channel loser right now is X , with companies now posting on LinkedIn 2.7 times more often than Elon Musk's platform, despite Musk's contention that LinkedIn posting is "cringe." Press releases are still the leading format for media-aimed communications, followed by social and blogs. For direct-to-customer, it's social media and company websites. Keep in mind, this study doesn't distinguish between B2B and B2C. (see: know your audience)

In addition to a notable increase in LinkedIn usage, communicators are also using video more. Of course, video and LinkedIn go well together. I have had tremendous success with lead generation for industrial tech via well-produced live video events. Happy to discuss with you!

3M Steps Up Its Manufacturing Automation Commitments

At 3M 公司 's investor day Wednesday, Group President of Enterprise Supply Chain Peter Gibbons made a significant commitment to manufacturing automation as part of a broader operational excellence and productivity push. Gibbons says the company has more than 80 automation projects slated for this year, which should translate into a reduced headcount of approximately 700 people. ( The Minnesota Star Tribune reports that those reductions will come through "normal attrition.")

"We need to have standardized automation solutions that we can roll out faster across more plants simultaneously," Gibbons says.

For example, 3M has an automated materials handling project that automates 60% of the workflow, reducing staffing requirements by 50%. When extended across 40 plants, there is a potential headcount reduction of 1,000 people.

3M is also targeting the cost of quality. For example, the company believes there is an opportunity to reduce process waste by $100 million. One of the ways 3M is looking to do that is by piloting a closed-loop AI system to reduce waste by 16%, and then again by replicating that across the entire network.

3M is also applying AI to demand planning and inventory optimization. A pilot program using machine learning has improved forecast accuracy by 14%. Gibbons highlighted AI planning tools, process optimization tools that allow the company to adjust machine rates and settings automatically with AI, and real-time decision-making tools to optimize inventory as priority tech investments going forward.

Signs of Advanced Industries M&A Growth in 2025

麦肯锡 's analysis of M&A in advanced industry segments - defined as automotive, aerospace & defense, industrials and electronics, and semiconductors - suggests 2025 may show growth after a couple sluggish years. That's based on the fact that while deal volume and value in 2024 was roughly flat with 2023 (and half what we saw at the beginning of the decade), a lot of '24 activity was backloaded in the second half of the year. The leading segment has been industrials/electronics, and APJ the biggest region.

McKinsey credits lower interest rates (we'll see) along with the emergence of new technologies, software, and ecosystems. Plus private equity, an importance source of capital for these transactions, is sitting on nearly $1 trillion in investable cash.

The full report is available online but here's the highlights by industry segment:

• Automotive: The shift to electric vehicles is squeezing supplier margins on the ICE side, forcing them to look for scale, as well as for new opportunities in areas like software and vehicle electronics for autonomous driving features.
• A&D: New opportunities are emerging in new technologies and space-related solutions, such as unmanned aerial vehicles and space sector systems as well as cross-regional deals between the U.S. and Europe in the space sector given geopolitical tensions.
• Industrials & Electronics: There is growing interest specifically in software, AI, sustainability, and decarbonization. The latter technology areas include things like heat pumps and electric motors.
• Semiconductors: AI and the automotive industry are powering the semiconductor industry forward, and deals are also being driven by efforts to navigate geopolitics.