State seeking $70 million federal grant to create next Manufacturing USA institute

Wisconsin’s business and higher education leaders are once again in pursuit of a sizable federal grant, this time to create a Manufacturing USA institute in the state that would be focused on artificial intelligence.

The U.S. Department of Commerce’s National Institute of Standards and Technology (NIST) has opened a national competition that will lead to the creation of the next Manufacturing USA institute. The new institute will be focused on using AI to increase the resilience of American manufactures. A single applicant will be awarded up to $70 million over five years to support this effort.

There are 17 Manufacturing USA institutes in existence today, including one with a cybersecurity focus located in Chicago. All of the institutes form a national network dedicated to accelerating advanced manufacturing nationally.

Given Microsoft’s recently announced plan to build a $3.3 billion data center campus in Mount Pleasant, along with the creation of a new AI Co-Innovation Lab at UWM, state leaders believe placing the next Manufacturing USA institute in Wisconsin is a no-brainer.

“It makes sense for the University of Wisconsin-Milwaukee to pursue this opportunity because of the synergies happening right now that give us a competitive edge,” said Sam Rikkers, chief operating officer at WEDC.

WEDC is one of several Wisconsin entities supporting the state’s submission of a concept paper to NIST.

Other partnering organizations include the University of Wisconsin-Milwaukee, University of Wisconsin-Madison, University of Wisconsin-Stout, MSOE, Marquette University, MATC, Gateway Technical College, Waukesha County Technical College, Madison Area Technical College, Rockwell Automation, Milwaukee Tool, Oshkosh Corp., Husco, MMAC, the MKE Tech Hub Coalition and more.

In total, there are more than 50 industry partners supporting Wisconsin’s application.

The state has a further competitive edge in securing the $70 million NIST grant because of Gov. Tony Evers’ work to get ahead in researching AI, said Rikkers.

In July, the Governor’s Task Force on Workforce and Artificial Intelligence released an action plan proposing several policies aimed at strategically adopting AI.

“I’m really bullish that the work already being done with Microsoft, manufacturing partners, and UW-Milwaukee, along with governor’s leadership in creating an (AI) task force, that the federal government will look at Wisconsin and say, ‘Oh my gosh.’”

If Wisconsin becomes the site of the next Manufacturing USA institute, the organization will work closely with UWM’s Connected Systems Institute, which is the location of Microsoft’s latest Co-Innovation Lab.

Manufacturing USA institutes help address broader problems over an extended period, while UWM’s Co-Innovation Lab works with manufacturers during a shorter cycle to solve smaller-scale problems, according to Joe Hamann, executive director of UWM’s Connected Systems Institute.

“The AI Co-Innovation lab is focused on really quick engagement with manufacturers – to help get them started on the deployment of AI,” said Hamann. “Manufacturing USA institutes are in place to strengthen competitiveness of U.S. manufacturing on a global scale, while also strengthening our talent base.”

The Manufacturing USA institute would have a brick-and-mortar location somewhere in the state, to be determined at a later date.

In addition to the $70 million federal grant, partnering organizations will be responsible for securing cost-share funds from nonfederal sources.

Wisconsin’s concept paper, which is essentially a business plan outlining how the state’s partners would come together to support a Manufacturing USA institute, will be submitted on Sept. 30. Applicants will learn if they make it to the next stage in November. A winner will be named next April.

“The presence Microsoft now has in the state with the data center and the Co-Innovation Lab only helps the state demonstrate that it’s a powerhouse with AI and manufacturing, and that’s the argument we make to bring this thing to Wisconsin,” said Hamann.

Other federal applications
News of Wisconsin’s NIST application follows two other large-scale efforts aimed at earning the state federal recognition and funding.

Earlier this year, the U.S. Department of Commerce’s Economic Development Administration (EDA) named Wisconsin a finalist as part of the national Tech Hubs program, awarding the state $49 million.

That funding will be used to support six regional projects, including the creation of a Health Data Hub at UW-Madison; the creation of CAREScan Mobile Screening Centers in partnership with the Medical College of Wisconsin; a theranostics-centered patient care pathway project led by GE HealthCare; an innovation to commercialization project aimed at supporting inventors; a new biohealth careers pathway; and the creation of a new steering committee to guide the projects to pre-determined milestones.

Milwaukee-based nonprofit The Water Council has submitted a separate application to become a regional innovation center focused on bolstering water and energy resilience for manufacturers.

The Water Council, along with several partnering organizations, announced last May it had been awarded $1 million from the U.S. National Science Foundation to further plan out the regional innovation engine, called the W+E Forward Engine.

Last month, The Water Council officially submitted its “pre-posal” for the engine.