Ken RogersExecutive Director

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

New and Emerging Industries in

Southeast Michigan

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.

Other Initiatives That Move Southeast

Michigan Forward

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!!

For additional information, visit www.automationalley.com

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