This Week in Engineering explores the latest in Engineering from academia, government and industry.
Episode Summary:
In another cyber-attack on critical American industry, meat processing major JBS suffered an attack which shut down several meat processing plants in the US, Canada and Australia. At its worst, the attack stopped 20% of US beef production. Russian hackers are suspected.
Italian tire maker Pirelli has introduced a low rolling resistance tire for hybrid SUVs that uses latex harvested with sustainable forestry practices, signalling a new definition of “green” in the tire industry.
And as the semiconductor shortage becomes a full-blown crisis in the auto industry, the major auto manufacturers association has teamed with a major semiconductor industry association to call on the Biden Administration the speed passage of the Chips for America Act. In the meantime, the industry will likely be affected until the third quarter at least.
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Transcript of this week’s show:
Segment 1: In the latest cyber attack to affect a major part of the American manufacturing supply chain, Brazilian meat processing firm JBS halted processing at the firm’s five biggest US beef operations following a network attack last week. The US plants handle over 22,000 cattle a day, and represent almost 20% of US production. Australian and Canadian plants were also affected. The company reports that backup servers were not penetated, and that production has resumed. JBS has not indicated if a ransom was paid, and the White House has issued a statement declaring that the attack originated in Russia, and called for the Putin government to find the perpetrators. The FBI, the US Department of Agriculture and government agencies from both Australia and Canada have rendered assistance to recover production. JBS states that the cyber attack was against operational assets, and that supplier, customer and employee data are secure. The US government has a dedicated letter agency addressing cyber attack, the Cybersecurity and Infrastructure Security Agency, or CISA. The agency has identified primary metals, transportation, machinery and component manufacturing, particularly electrical, as core manufacturing assets vulnerable to cyber attack. The agency also addresses food supply, however it focuses on agriculture and supply chains. This attack may result in a rethink of where food processing fits into the critical infrastructure plan. Noteworthy to both this attack and the gas pipeline attack of two weeks ago is that the company’s targeted represent weak links in the retail supply chain for critical products, impacting American consumers directly and immediately. It’s unclear whether the attacks are simple extortion or part of a larger, geopolitical or terrorist strategy. We’ll be watching.
Segment 2: Electric vehicles are the automotive world’s leading technology for low omissions driving, but the components that make them are frequently considerable pollution emitters themselves. Tires are no exception, but Italian tire maker Pirelli has developed a new product that is Forest Stewardship Council certified, containing natural rubber and rayon drawn from sustainable sources. FSC certification monitors the plantations that grow the essential natural latex used in high-performance auto tires and ensures that sustainable materials are separated from noncertified material through the production supply chain. The first products in the initiative are low profile large diameter tires for the BMW X5 xDrive45e Plug-in-Hybrid. The SUV is specially engineered for low emissions, with a model specific 3 L in-line six-cylinder turbocharged gasoline engine and BMWs fourth generation of electric motor technology. The tires are part of BMWs full cycle CO2 certification for the hybrid X5, which extends from raw material procurement, supply chain manufacturing and the use phase, through to end of life and vehicle recycling. All major tire makers and most major automakers have formed a trade Association called the Global Platform for Sustainable Natural Rubber, including Pirelli and the BMW group. Natural latex has outstanding elastomeric properties and despite numerous advances in synthetic rubber technology over a century, typically 20% of the weight of a modern car tire is natural latex, tapped from trees. Eco-friendly tires were traditionally simply a low rolling resistance designs, but in the future, they’ll need cradle-to-grave green credentials.
Segment 3: With the ongoing integrated circuit shortage now crippling automotive production worldwide with no end in sight, the automotive industry is teaming with the semiconductor industry to speed the search for a solution. The Alliance for Automotive Innovation and the Semiconductor Industry Association have set up what the organizations call a joint industry workshop to address the chip shortage. Experts and manufacturing industry leaders from both sectors participated. The primary result was an urgent call for immediate funding for Pres. Biden’s CHIPS for America Act, a bill which will federally fund American domestic integrated circuit production. Most current estimates project that the chip shortage will last until the third quarter at the earliest, and major manufacturers like Ford have stopped production lines or are storing unfinished vehicles awaiting ICs. Even electric vehicle manufacturers like Tesla are affected. While Covid 19 is the primary reason for the shortage, the semiconductor industry supply chain is not bouncing back as quickly or strongly as other goods sectors. Reasons for this are numerous but many are based on the just-in-time nature of the global automotive supply chain, where manufacturers attempt to inventory as little as possible and rely on Tier 1 and Tier 2 suppliers to operate on lean production principles for lower overall costs. To address this, the CHIPS for America Act contains multiple provisions for kickstarting the US industry as fast as possible. Income tax credits for semiconductor equipment and manufacturing facility investment will be available through 2026, and the bill establishes a trust fund to be allocated on reaching an agreement with foreign government partners to standardize policies related to the micro-electronics industry and increase transparency in supply chains. The bill also authorizes the Department of Commerce to set up research and development programs to create next-generation microelectronics, including the creation of a Manufacturing USA Institute for semiconductor manufacturing. It’s sweeping legislation but will essentially be ready for the next crisis. Most industry experts expect that chip shortages will constrain auto production through the third quarter at least. Will the bill pass? It’s sponsored by Texas Republican Congressman Michael McCall and despite the Democratic majorities, it’s likely to have wide bipartisan support.
