Ken Rogers Executive Director Today s Agenda

Ken Rogers Executive 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?

Automation Alley • 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

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: – Next. Energy: 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 • A 123 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: – Mich. Bio: 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 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 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 – Tech. Town: 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

Automation Alley Success Stories Electro. Jet • 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

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!!

Editorial Cartoon For additional information, visit www. automationalley. com