The United States Department of Energy (DOE) is tapping into Indiana’s robust automotive manufacturing industry to gather insights for a playbook that will serve as a nationwide resource to expand the capabilities of electric vehicle (EV) supply production.
DOE has awarded a $500,000 grant to Purdue Manufacturing Extension Partnership (MEP) and Conexus Indiana, which will collaborate with small- and mid-size manufacturers (SMMs) in the state. The organizations will engage SMMs to draw feedback and combine that information with their own expertise to formulate ideas and guidance for DOE’s Small Supplier Electric Vehicle Transition Playbook. The initiative, funded by DOE’s Office of Manufacturing and Energy Supply Chains, seeks to help SMMs create action plans to adapt their existing internal combustion engine (ICE) supply chains to support the EV and clean energy industries.
“DOE has done the work on the prototype of the playbook, but they want to make sure that get it to advanced manufacturing companies to make sure the end product is helpful and accurate,” said Bryce Carpenter, Chief Operating and Strategy Officer with Conexus Indiana. “Purdue MEP and Conexus Indiana will get it out to the right constituents across the state, organize the feedback, and provide our expertise we have in-house for additional levels of feedback. Ultimately, the finished playbook will be launched on a broader scale across the country.”
Ranae Stewart, Senior Executive Director of Purdue MEP, said the two organizations will work with SMMs over the next 12 to 18 months, asking for input about what areas of the playbook draft resonates within their business operations and what information could be adjusted or expanded upon.
“It’s so proactive in getting out in front of what will be occurring 10 years down the line,” she said. “It will help ensure manufacturers are successful as they explore additional markets within the EV industry as it quickly progresses.”
Multi-Directional Guidance
The information detailed in the playbook, which is expected to be distributed by the DOE in two years, will cover three main areas for manufacturers. Those areas include technical, financial, and strategic guidance as SMMs approach modifications to existing production processes to incorporate EV component manufacturing. The feedback from SMMs will help the organizations better address useful information as well as detail trends expected in the next few years within the industry, relay what effects a transition to EV supply markets will have on suppliers and manufacturers and reveal the best opportunities to diversify their companies.
Stewart said the playbook will also provide a comprehensive look at the resources available for implementation, which she noted has been a reoccurring request among SMMs.
“A lot of it is to provide these companies information not only in terms of what they can do with their businesses to open up new markets but also to make them aware of the various funding opportunities that are available,” she said. “They don’t know all the various resources that are out there to help them, especially when it comes to funding. I think that’s going to be a really key component. It will link them to resources to actually help them implement what is laid out in the book.”
The earlier Indiana companies start thinking about diversification and taking steps to act on it, the better off they will be, Carpenter noted. He said he anticipates hearing from many companies that have at least considered movement to diversify in the EV space but have yet to pivot into new avenues.
“Hopefully, by being part of this Indiana pilot, we can get some of our partner companies acting on this earlier than they would have otherwise,” he said. “Then with the guidance, they will be more ready to be EV suppliers as need continues to grow in the market.”
Stewart said an additional benefit of the playbook is its ability to become a framework for other industries as they find ways to diversify their products to meet the needs of greener industry transitions.
“While this will be very specific to the automotive industry, I think there will be lessons that can be taken and translated to other manufacturers,” she said. “It will give a very good outline of the various steps they should take, what resources are available, and what they should consider when they are working to diversify their market within any industry.”
Building on Stability
Indiana ranks second in the U.S. for overall automotive production and has the highest concentration of manufacturing jobs in the nation, according to the Indiana Economic Development Commission. While it is positive that the industry is thriving, Carpenter noted the speed at which their businesses are operating allows them very little time to be forward-thinking.
“So, it is critical that organizations like Conexus Indiana and Purdue MEP can come in and help bring ideas and solutions,” he said. “It’s about ensuring the 120,000 workers and the more than 500 manufacturing companies in the state within the automotive ecosystem remain healthy.”
Carpenter said, ultimately, the Small Supplier Electric Vehicle Transition Playbook is about ensuring that the Indiana automotive supply chain makes it to the next set of vehicles being made. With a 100-year automotive ecosystem in place, he said Indiana is already positioned to remain stable and secure jobs regardless of what type of vehicle is being driven.
“Indiana is the most manufacturing-intensive state in the country,” Carpenter said. “With 30 percent of the state’s gross domestic product coming from manufacturing and logistics, I think Indiana is going to be a barometer of the health of manufacturing across the nation for many years to come.”
