From the CEO: The question every manufacturer should be asking right now

Written by
Kimberlee Humphrey
,
CEO
Published on
June 12, 2026

I’m honored this week to have guest writer Mike Evans. Mike and I have worked together on several initiatives over the past 18 months, and his insights on how AI is reshaping the manufacturing landscape have proven invaluable to our AME community. And if his name sounds familiar, it should. Mike was a keynote speaker at the AME Cleveland conference.

Mike spent 27 years working inside 34 Fortune 50 companies, including executive roles at Kotter International, Franklin Covey, and the Tom Peters Company. His new book, Distinct or Extinct: Future-Proofing People and Organizations in the Age of AI, launched in April and provides practical guidance for leaders navigating what he calls “the 7-Sided Pincer Movement” of converging disruption forces.

Enjoy reading Mike's post below:

I was in a room with 140 industrial leaders last month. These were people running portfolio companies in manufacturing, distribution, and industrial services. Smart operators. Not easily rattled.

I asked them a question I’ve been asking manufacturing executives for the past year:

“What would be most helpful in a book to help guide your children through the Age of AI?”

The overwhelming majority couldn’t answer.

Not because they didn’t care. Because they couldn’t articulate what they needed. They knew something big was coming. They just didn’t know what to do about it.

And then it hit me: if these leaders can’t name the problem for their own children, how are they supposed to prepare their own people?

The problem isn’t AI. The problem is the question we’re not asking.

Most manufacturers are asking: “How do we implement AI?”

That’s the wrong question.

The right question is: “What are we building in our people that AI cannot replace?”

Because here’s what I’m seeing in plant after plant, facility after facility:

AI is not replacing jobs. It’s replacing tasks.

And the organizations that survive this transition will be the ones whose people can do the work AI can’t.

What AI can’t do (yet)

Let me give you a concrete example from the field.

A mid-sized manufacturer brought me in because they were worried about workforce displacement. They’d just deployed AI-powered quality inspection that could scan 10,000 parts per hour with 99.7% accuracy.

The question on everyone’s mind: What happens to the inspectors?

Here’s what actually happened.

The inspectors became problem solvers. When the AI flagged an anomaly, the inspectors investigated root cause. They worked with engineering to adjust upstream processes. They collaborated with suppliers on material specs. They trained newer employees on what to look for that the AI might miss.

The AI handled the volume. The humans handled the judgment.

Output increased 23%. Defect rates dropped 41%. And not a single inspector was let go.

But here’s the part that should stop every manufacturing leader from reading this: that outcome wasn’t automatic. It required a deliberate choice to invest in human capability at the same time as the company was investing in automation.

The five ingredients that matter

Over 27 years working inside manufacturing operations at Intel, Apple, PepsiCo, Caterpillar, and dozens of others, I’ve identified five capabilities that distinguish organizations that thrive through disruption from those that get caught by it.

I call them the Kryptonite Defense. Not because they’re weaknesses. Because they’re what protects you when the forces bearing down feel unstoppable.

1. IDEAS — the ability to see second-order consequences before they arrive
2. SPEED — the organizational metabolism to act on insight before the window closes
3. TALENT — building human capability faster than AI commoditizes existing skills
4. DISTINCTION — knowing what makes your operation genuinely irreplaceable
5. LEADERSHIP AT ALL LEVELS — distributing decision-making authority so the organization doesn’t bottleneck at the top

Every manufacturer I’ve worked with who’s navigating AI successfully is building all five. Not sequentially. Simultaneously.

What this looks like on the ground

Let me be specific.

IDEAS means your supervisors aren’t just executing the schedule. They’re identifying bottlenecks the ERP system can’t see and proposing better material flow before the problem compounds.

SPEED means when an equipment failure happens, your team doesn’t wait for engineering to diagnose it. They’ve been cross-trained to troubleshoot, isolate the issue, and implement a workaround while the permanent fix is being developed.

TALENT means you’re investing in your people’s judgment, not just their technical skills. Because AI will learn the technical part. What it won’t learn is how to read a room, interpret what a customer isn’t saying, or make a call when the data is incomplete.

DISTINCTION means you know what your operation brings to the market that no competitor can replicate. And you’re building your workforce development strategy around protecting and expanding that edge.

LEADERSHIP AT ALL LEVELS means the front-line team lead has the authority to stop the line if something doesn’t look right. And the organizational trust to know that decision will be supported, not second-guessed.

The manufacturers who win

The manufacturers who win this decade won’t be the ones with the most AI.

They’ll be the ones whose people know how to work with AI while doing the work AI can’t.

They’ll be the organizations that invested in human judgment while everyone else was chasing automation efficiency.

They’ll be the plants where leadership is distributed, not centralized.

Where speed is a capability, not just a metric. Where every person on the floor knows what makes the operation distinct and is empowered to protect it.

AI is not the disruption. AI is the accelerant.

The 7-Sided Pincer Movement I write about — globalization, commoditization, disruptive competition, exponential technology, volatility, demographic shifts, and AI — has been tightening for two decades.

AI just sped everything up.

The question isn’t whether your operation will be affected. The question is whether your people are ready.

What to do Monday morning

If you’re a plant manager, ops director, or manufacturing executive reading this, here’s what I’d recommend you do Monday morning:

Walk the floor. Ask three people this question:

“What’s one thing you do in your job that you think AI will never be able to do?”

Listen to the answers. Really listen.

If your people can’t answer that question, you have a workforce development problem that no amount of automation will solve.

If they can answer it, ask them this: “What would you need from leadership to get even better at that?”

Then go build it.

Because the manufacturers who thrive through this transition won’t be the ones with the smartest AI.

They’ll be the ones with the most prepared people.

Those prepared need not fear the forces at work.

Thank you Mike! What I appreciate most about Mike’s approach is that he doesn’t lead with fear. He leads with preparation. And for manufacturing leaders who are genuinely wrestling with how AI changes their workforce, their operations, and their competitive position, that distinction matters.

AME is proactively addressing the opportunities of AI. We are holding regular events around this topic, and our AME Milwaukee conference with the theme of PEOPLE FIRST, PROGRESS TOGETHER will embrace a "yes/and" approach to enterprise excellence. You will learn how innovative organizations are using technology to elevate - not replace - people.

We also have some exciting news to share. In celebration of the 250th anniversary, we are extending our current conference pricing as a gift to our members. While our conference rates were scheduled to increase, we have decided to hold pricing at the current level as a way of saying thank you and recognizing this historic milestone with you. We hope this makes it even easier for you and your teams to join us for what promises to be a memorable and meaningful conference. AME Milwaukee 2026 International Conference registration  

As always, please stay safe and keep looking out for one another.

Share

Learn

Grow

Share

Learn

Grow

Share

Learn

Grow

Stay up to date on the latest AME news, events and resources delivered right to your inbox.
Copyright © 2026 Association for Manufacturing Excellence All rights reserved. Site Designed by: KH Digital