ken rogers executive director. today’s agenda automation alley overview new and emerging...
TRANSCRIPT
Today’s Agenda
• Automation Alley Overview
• New and Emerging Industries Regionally
• Other Initiatives in Southeast Michigan
• Local Success Stories
• Do we Have a Future and Why?
• Southeast Michigan’s largest technology business association
• 1,000 members from business, government and education
• In top 10 of tech associations across the United States
• Goal: brand the region as a global center for technology
• Top benefits:–Networking–Seminars and events–Entrepreneurial assistance–International business support
Automation Alley
Alternative Energy• Green is the new gold
• Energy resources and partners encouraging alternative energy R&D and manufacturing:– NextEnergy: enables commercialization of energy technologies
that contribute to economic competitiveness, energy security and the environment
– Michigan Green: consortium of 100 public & private sector members working to make Michigan an alternative energy powerhouse
• University centers capitalizing on resources, talents and capabilities to advance emerging alternative energy technologies:– Michigan State University: Biomass Conversion Research Lab– University of Michigan: Hydrogen Energy Technology Laboratory– Michigan Technological University: Sustainable Futures Institute
Alternative Energy• Former Ford Wixom plant to be converted into a renewable energy
park– Texas-based Xtreme Power plans to invest $475 million
and expects to create 2,500 jobs over the next five years
– Clairvoyant Energy Solar Panel Manufacturing plans a four-phase investment totaling $857 million and expects to create 750 jobs
• A123 Systems of Ann Arbor/Livonia was awarded a $249-million grant from the Department of Energy for the construction of lithium ion battery manufacturing facilities.
• General Motors is investing $43 million in Brownstown Twp. to manufacture lithium-ion battery packs for Chevrolet Volt.
Life Sciences/Medical• Making Southeast Michigan an international center for health care and
research:– Hospitals– Universities– Medical device companies – Biopharmaceutical companies– R&D laboratories– University programs for doctors and nurses
• Industry Resources:– MichBio: supports the growth of the biosciences industry in Michigan– Western Michigan University: Biosciences Research and Commercialization Center– CMU Research Corporation: uses nanotechnology for better
drug delivery and gene therapy
Life Sciences/Medical • Medical Main Street
– Alliance of hospitals, universities, medical device and biopharmaceutical companies creating a global center of innovation – all within an hour’s drive of each other
– Focuses on biotechnology, health care and medical devices– Branding Southeast Michigan as a major hub for health care
• Michigan leads the nation as one of the fastest growing life sciences states– 540 life sciences companies– 32,000 employees in life sciences– 30 academic R&D centers at MI universities focusing on life sciences – 4,900 clinical trials being conducted (highest in country)– 3,000 life sciences patents are filed annually by MI companies,
placing state in the top ten
Defense/Military• Tank-Automotive & Armaments Command (TACOM):
provides and sustains mobility and survivability for soldiers – Awarded 26,000 contracts for $25 billion in last fiscal year
– Expects contract spending to be $15 billion in 2010
• TARDEC: develops, integrates and sustains technology solutions for all manned and unmanned Department of Defense ground systems and combat support systems– $500 million annual budget
• National Automotive Center: official link to commercial industry, education and other government agencies in developing dual-use automotive technologies
Defense/Military• Recently consolidated Army robotics programs in Alabama
with Warren R&D– Brought 100 jobs– Stronger program makes TACOM a major center for robotics R&D – University of Michigan’s engineering school recently added a
master's degree program in robotics
• Diminishing Manufacturing Sources & Materials Shortages Program (Automation Alley program)– 3-year contract to identify manufacturers capable of producing
replacement parts for the Army – First business sources will be Southeast Michigan businesses
• Automation Alley to open defense office in Macomb County
Defense/Military • General Dynamics Land Systems is investing $10 million to expand
in Sterling Heights and Shelby Township; project is expected to create 500 new jobs and an additional 649 spin-off jobs to support armored vehicle production
• TARDEC is constructing a $40.5 million Ground Systems Power and Energy Laboratory– 8 new labs for testing military ground vehicles
– House 70 people, including 35 newly created jobs
• Army expects to boost employment in the region from 6,500 today to 9,800 by 2015 – 50% job growth. – Most of the jobs will be filled by civilians with advanced degrees
Film• Film incentives launched in April 2008 reimburse a
qualified project up to 42% of its production costs.
• Making movies requires skilled electricians, camera operators, art department workers, interior designers and production accountants.
• In 2009, there are already 85 movies made or with production applications filed with the state.
• In 2007, moviemakers spent $2 million producing films in the Michigan. In 2008, that soared to $125 million and job creation grew with it.
•
Film
• Unity Studios Inc. is investing $146 million to locate a new film, television and media production studio in Allen Park.
• The 600,000 sq. ft. Centerpoint office complex and former General Motors truck plant in Pontiac will be the site of a new $70 million film production facility.
• Detroit Center Studios in downtown Detroit will cost $86 million to construct, create 700 jobs, and house rooms for editing and screening, soundstages, offices and a commissary.
International Business • World comes to our shores to find opportunities – we should be doing the
same!
• Trade missions: opportunities to conduct business with overseas companies – Export products/services;
joint ventures; licensing
– Automation Alley has conducted 11 trade missions – Israel, China, Mexico, Germany and more.
– $141 million in contacts for small Southeast Michigan companies
– 200 new jobs created
– Presidential ‘E’ Award for Excellence in Exporting; first Michigan award in 38 years
International Business• Business attraction: Automation Alley serves as a
resource for foreign businesses, government entities and educational institutions. – Netherlands-based Mithun (engineering training company)
opened a Troy office in early 2009
– Israel company discussing relocation/expansion in Southeast Michigan from recent trade mission
• Visiting delegations: global companies looking for partnerships with local companies – Recent delegations to visit Automation Alley:
• The Michigan Israeli Business Bridge, Swedish business delegation, Hunan Chinese delegation, and CEIBS - China European International Business School
International Business• Global Trade Mission: preparing
Southeast Michigan high school students to participate in the global economy by simulating the preparation of an international trade mission. – 1,900 students have completed
the program
• Wayne County has an office in central China and is preparing to open a second in northeast China.
• Economic developers from Macomb and Oakland often attend trade missions in search of new relationships and business attraction.
Entrepreneurism • Need to create/expand entrepreneurialism in region
• Region graduates 12,000 engineers annually– Southeast Michigan is a global center for engineering excellence
– Engineering talent will sustain and grow our economy
• Small companies are the cornerstone of our new economy– They will be our “Microsofts” and “Hewlett Packards”
– Goal is to create new companies and jobs
• Risks are required for success– Flint entrepreneurs buying and rehabilitating property in
downtown area
– 23 major projects have been completed since 2003 with investment value of $209 million
Entrepreneurism• Local resources:
– Automation Alley: seed funding, trade missions, military assistance
– Military: funding for new products; commercial applications
– TechTown: business incubator that provides startups with resources needed for success
– Michigan Small Business Technology Development Center (Mi-SBTDC): provides services and support to small businesses
– Michigan Manufacturing Technology Development Center (MMTC): assists small and medium sized manufacturers
– Economic development agencies– Area universities for research assistance
ElectroJet
• Designs & manufacturers small engine fuel injection systems for scooters
• Attended 2006 China trade mission
• Recipient of Automation Alley seed funding
• Projected to sell up to $80 million in China in 2009
Critical Signal Technologies
• A leading provider of personal emergency response systems, medication management systems and vital sign supervision
• Recipient of Alley seed funding
• Recently acquired a Massachusetts company
Automation Alley Success Stories
Closing Thoughts…Do we have a Future?We do indeed have a future. Some facts: • We are a major engineering center• New robotics & battery industries forming • Defense opportunities continue to grow• Home to 184 automotive R&D centers• Of the top 39 economic investments in Michigan, 50% are in Southeast Michigan, totaling
$5.7 billion (Crain’s)• Local universities have invested $1 billion annually in R&D• Some of the greatest medical institutions are here
• Medical Main Street branding• Our quality of life is second to none!
When you think about the future of Southeast Michigan, remember this:
the glass is not half empty, it’s half full!!