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The Advanced Manufacturing Industry Study visited a wide range of manufacturing firms and met with domestic and foreign industry leaders from academic institutions, research and development organizations and various trade and labor associations. This paper assesses the state of advanced manufacturing by looking at the people, processes and technology that drive success in an industry sector critical to the United States' national security. Workforce demographics and skill levels are worldwide concerns occupying the attention of every company visited by the Advanced Manufacturing Industry Study. Process improvements that take advantage of information technology, and common sense approaches like lean manufacturing, increase efficiency and productivity. Research in leading edge technologies continues to promise exciting new manufacturing methods that will increase industry's flexibility and agility in rapidly delivering products to customers. However, some companies, for example defense contractors with low production rates, may not find it cost effective to adopt new technologies.