Table of Contents 06
08
10
12
FOUNDATION MEMBERS
FISCAL REPORT & MEMBERSHIP STATS
ECONOMIC & COMMUNITY IMPACT
AUTOMATION ALLEY FUND
13
16
18
20
TALENT DEVELOPMENT
DEFENSE & MANUFACTURING
INTERNATIONAL BUSINESS SERVICES
22
24
25
26
TECHNOLOGY INDUSTRY REPORT
X-OLOGY MAGAZINE
AUTOMATION ALLEY EVENTS
COMMITTEE ACTIVITIES
ENTREPRENEURSHIP
Message from the Executive Director/President Significant business growth is rarely achieved in a silo. In our experience, growth and innovation are usually the result of smart partnerships and creative collaborations.
Ken Rogers Executive Director
the biggest challenges in the auto industry at the time. GM and DuPont together developed Duco lacquer, used on Chevy vehicles beginning in 1924, cutting drying time from weeks to hours. Other joint innovations included new refrigerants and anti-knock gasoline additives.
These relationships are the foundation of Automation Alley: businesses, educational institutions and government entities working together to grow the technology cluster of Southeast Michigan. We believe that great partnerships have great power: the power to overcome economic challenges, solve problems and make good companies great.
Or consider this partnership from today’s business world: the partnership between Starbucks and payments startup Square. Last year, Starbucks announced it would invest $25 Scott Goemmel million in Square. Recently, President, Starbucks announced that its Board of Directors customers can now pay for their lattes using the Square Wallet But don’t just take our word for it; take a look smartphone app, which allows users to make back at history. purchases by simply saying their name. The partnership brings invaluable brand recognition In the early 20th century, GM was on shaky to Square and enhances the customer ground financially. Then, in 1915, Pierre S. experience at Starbucks. DuPont — a founder of the modern DuPont Co. and a GM shareholder — was elected a So what game-changing partnership is waiting director at GM, later becoming chairman and in your company’s future? then president. Seeing a market for DuPont’s products, Mr. DuPont’s advisors persuaded him At Automation Alley, we’re committed to to invest millions of dollars into GM, saving the bringing diverse partners together to change automaker from collapse. the course of Southeast Michigan’s history. The partnership wasn’t just a wise investment — GM went on to become the world’s leading automaker in 1927 — it was the catalyst for the development of innovative new products, like “Duco” lacquer. Slow-drying paint was one of
In 2012, we brought thousands of professionals from across Southeast Michigan together to discuss opportunities to work together to grow and prosper.
THIS YEAR, AUTOMATION ALLEY LAUNCHED A NEW MARKETING CAMPAIGN WITH A NEW TAGLINE: TECHNOLOGY’S MATCHMAKER FOR BUSINESS. THIS ISN’T A GOAL FOR US, OR EVEN A PROMISE — IT’S WHO WE ARE. We brought entrepreneurs together with funding partners and mentors to accelerate the development of innovative new technologies. We brought industry representatives together with educational institutions to develop training programs to build tomorrow’s hightech workforce. We brought small and medium businesses together with partners and clients overseas, opening the doors to growing new markets. And we brought manufacturers together with our military partners to provide opportunities for diversification into the defense industry. This year, Automation Alley launched a new marketing campaign with a new tagline: Technology’s Matchmaker for Business. This isn’t a goal for us, or even a promise — it’s who we are. It’s who we’ve been. We’re in the business of bringing great minds together to grow the companies of tomorrow. So let’s talk. Come on over. Let’s do business together. Let us be your matchmaker.
2012 Board of Directors /////////////////////////////////////////////////////////
Scott Goemmel, President, SMG Capital Group Mark Symonds, Vice President, Plex Systems, Inc. Brian McGinnity, Immediate Past President, HIROTEC AMERICA Christine Estereicher, Secretary, Chrysler Group LLC Donald Clayton, Treasurer, Clayton & McKervey, P.C. Ken Rogers, Executive Director, Automation Alley John Almstadt, Oakland County Workforce Development Board John Blanchard, General Motors Rick Darter, Rave Computer Todd Fenton, Wayne County Matthew Gibb, Oakland County David Hay, Kelly Services, Inc. Christopher Hopkins, Grid4 Communications Donald Ishmael, General Dynamics Land Systems Kathryn Levine, Blue Cross Blue Shield Robert McMahan, Kettering University Karen Mitchell, DTE Energy Virinder Moudgil, Lawrence Technological University John Shallman, Beaumont Health System Tracie Tillinger, Detroit Economic Growth Corporation Peter Webster, Dickinson Wright PLLC Stephen Cassin, Ex-officio, Macomb County Government Jerry Rush, Ex-officio, Meritor, Inc.
GENESEE COUNTY
LIVINGSTON COUNTY
WASHTENAW COUNTY
ST. CLAIR COUNTY
OAKLAND COUNTY
MACOMB COUNTY
WAYNE COUNTY
MONROE COUNTY
Regional Partnerships Matchmaking success: Local economic developers + Automation Alley members and stakeholders in business, education and government Automation Alley partners with local municipality-based economic developers in order to better serve the businesses, educational institutions and government entities in the eight-county Southeast Michigan region. We match member businesses with people and programs at these partner institutions, providing businesses with resources for growth, supporting educational institutions with industry expertise and strengthening regional ties between business, education and government. The continued support of these partners is critical to Automation Alley’s success. In addition to contributing to the growth of member organizations, it is through these partnerships that Automation Alley is working to bring global recognition to the region as a leader in innovation and technology.
05 AUTOMATION ALLEY 2012 annual report
Trust. Always.
Foundation Members
06 AUTOMATION ALLEY 2012 annual report
Oakland County
Automation Alley thanks its Foundation Members for their continuous support in establishing Southeast Michigan as the leading technology and innovation region in the United States.
07 AUTOMATION ALLEY 2012 annual report
28%
29%
GRANTS
GOVERNMENT CONTRACTS
////////////////////////////
2011-2012 REVENUES (EXCLUDING SEED FUNDS) ////////////////////////////
2%
26%
OTHER
5%
EVENTS
MEMBERSHIP DUES
10%
CONTRIBUTED SERVICES
08 AUTOMATION ALLEY 2012 annual report
2012 MEMBERSHIP BREAKDOWN BY INDUSTRY (AT YEAR END)
//////////////////////////////////////////////////
18
%
8
%
63
%
PROFESSIONAL SERVICES
ASSOCIATION/ NONPROFIT
6% 5
%
TECHNOLOGY AND MANUFACTURING
EDUCATION
GOVERNMENT
09 AUTOMATION ALLEY 2012 annual report
Economic and Community Impact Automation Alley is Technology’s Matchmaker for Business. This means that we strive to make meaningful connections between individuals and organizations in Southeast Michigan, including businesses, educational institutions and government entities. The direct results of our matchmaking activities are regional economic growth and an increased quality of life in our local communities.
SINCE 1999 /////////////////////
More than
$7.96
$251
million
Investments in local high-tech startups or projects
million
3,353
Export sales generated for local companies as a result of Automation Alley trade mission activities
Jobs created or supported
IN 2012: DIGITAL REACH //////////////////////////////////
284,514
23,700
161
Unique visitors to automationalley.com
News and event email subscriptions
Countries to visit automationalley.com
SINCE 2010: DEFENSE ACTIVITY ////////////////////////////
257
Clients or companies that have met with Automation Alley’s defense consultants since 2010
10 AUTOMATION ALLEY 2012 annual report
More than
25,000
Companies listed in VisCom, the industrial base visibility and communication tool
SINCE 2004: ENTREPRENEURIAL SERVICES ///////////////////////////////////////
35 High-tech companies or projects invested in
$7.96 million
Investments in local high-tech companies or projects
$68.96 million
Capital (private equity, state/federal grants, foundations, etc.) awarded to Automation Alley seed-funded companies
AS OF END OF 2012: TALENT DEVELOPMENT ///////////////////////////////
In 2012, Automation Alley secured a $5 million grant from the U.S. Department of Labor to make high-level IT training available to local partner employers through the Technical Talent Development Program (TTDP). The IT Career Pathways Program (2010-2012) provided 158 youth and dislocated workers with IT training and certifications.
SINCE 2001: INTERNATIONAL BUSINESS ///////////////////////////////////////
17 Trade missions
127 8
Companies that have participated in trade missions
More than
$251
51
Jobs obtained by students
million Export sales generated for local companies as a result of Automation Alley trade mission activities
68%
Graduates employed full time
High-tech companies Automation Alley has attracted to the region since 2011
11 AUTOMATION ALLEY 2012 annual report
Automation Alley Fund Matchmaking success: Automation Alley Fund donors + opportunities to meet donors’ philanthropy goals In 2012, Automation Alley expanded its staff to increase and manage fundraising efforts for the Automation Alley Fund. The Automation Alley Fund is a 501(c)(3) nonprofit created to support the mission of Automation Alley. The Automation Alley Fund presents an opportunity for individuals and organizations who do not qualify for Automation Alley membership to support Automation Alley’s mission. In addition, organizations that do qualify for Automation Alley membership and wish to make a charitable gift to further support the mission of Automation Alley can do so. AUTOMATION ALLEY FUND BOARD President: Brian Balow, Dickinson Wright PLLC Treasurer: Brian McGinnity, HIROTEC AMERICA Secretary: Thomas Anderson, Automation Alley Board members: • Dan Kocks, Global Impact Group, MFG • Ken Rogers, Automation Alley • Jerry Rush, Meritor, Inc.
COMING IN 2013 THE AUTOMATION ALLEY SOCIETY Donors to the Automation Alley Fund may elect to be recognized as part of the Automation Alley Society. Names and/or logos of the organizations and individuals in the Automation Alley Society will be displayed at Automation Alley Headquarters in Troy. Additional Automation Alley Society recognition corresponds to the level of giving and can also include: • A subscription to X-OLOGY Magazine • Invitations to special events
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• Recognition on Automation Alley’s website and in the E-Newsletter • Special mention at the Automation Alley Annual Awards Gala • Lunch with Automation Alley’s executive director and board president
Automation Alley’s Mission: Automation Alley exists to grow the innovation cluster of Southeast Michigan. We believe in a bright technology future for our state that is innovation-led and driven by exporting. We create business development opportunities and results for our members and stakeholders who share our values. By helping our members achieve success, Automation Alley increases the quality of life in Michigan.
NAMING OPPORTUNITIES Automation Alley Fund donors may request to have an office or conference room at Automation Alley Headquarters named after them. Automation Alley Headquarters is visited by thousands of people from around the world and the region’s leading organizations every year. Naming an office or room at Automation Alley Headquarters allows donors to be recognized for their charitable gift and the significant impact made by their contribution.
BECOME A DONOR TODAY! Through charitable gifts to the Automation Alley Fund, donors support Automation Alley programs and initiatives that sustain and grow companies and further economic and talent development in Southeast Michigan. Activities supported by the Automation Alley Fund include, but are not limited to: • Seed fund investments and coaching for entrepreneurs and startup companies • Talent development and science, technology, engineering and math (STEM) education
initiatives for students, teachers and the local workforce • Trade missions to international and domestic locales for companies looking to expand • Consulting and procurement assistance for defense and manufacturing companies Donations to the Automation Alley Fund make a significant impact in the region, helping to create jobs, improve the economy and support the quality of life in local communities. A gift to the Automation Alley Fund is a wise investment in Southeast Michigan’s future and a strong statement of support to the business community and the region. For more information or to make a donation, contact Automation Alley at 248-457-3200 or info@automationalleyfund.com.
Talent Development IT CAREER PATHWAYS PROGRAM Matchmaking success: Youth and dislocated workers + IT certifications, career-readiness training, job placement assistance
IT CAREER PATHWAYS PROGRAM
Through a partnership with Oakland Schools, the Automation Alley IT Career Pathways (ITCP) Program provided eligible youth and dislocated workers with information technology training to re-enter the workforce. The program, which came to a close in 2012, offered IT certifications, career-readiness training and job placement assistance. The program was funded by a grant awarded to Automation Alley by the U.S. Department of Labor, Employment and Training Administration.
Through ITCP, students and workers received industry-recognized certifications, including Internet and Computing Core Certification (IC3), Microsoft Office Specialist (MOS), CompTIA A+ and CompTIA Network+.
(continued on next page)
“The skills I learned in Automation Alley’s IT Career Pathways Program helped me re-enter the workforce. I now have more confidence in my computer skills and the training and certifications to help me move forward in my career.”
“With guidance from the IT Career Pathways employment coordinator, I constructed an effective functional resume and now have the opportunity to reacclimatize to the workplace.” Carol Schoelch a graduate of ITCP who qualified for the program as a displaced homemaker
Joseph Baran a graduate of ITCP who was unemployed for 20 months
158
103
and
people entered the program.
people obtained at least one certification.
38
people entered a job during the life of the grant.
67%
“The ITCP training gave me the opportunity to update my technical knowledge and the confidence that was depleted over my long period of unemployment.” Allen Yu a graduate of ITCP who had been unemployed for a year and a half
of those employed maintained employment for the life of the grant. In the cases where employment ended, either the person took a new job or the job was contract-specific and the contract ended.
5
of the
6
students who entered employment in the first quarter of 2012 maintained their jobs for the full three quarters post-placement.
13 AUTOMATION ALLEY 2012 annual report
(continued from previous page)
TECHNICAL TALENT DEVELOPMENT PROGRAM
Technical Talent Development Program This unique program is made possible by a $5 million grant funded by the U.S. Department of Labor, Employment and Training Administration. The grant includes a $750,000 Challenge Fund available to Automation Alley member companies from entrepreneurial startup firms to mature companies - with immediate IT training needs.
Matchmaking success: Local companies with IT workforce needs + funding and IT training In 2012, Automation Alley launched a groundbreaking workforce development program to match local businesses in need of highly skilled information technology workers with the training and funding to develop both incumbent workers and new hires, bridging the “skills gap” in today’s IT workforce. The Technical Talent Development Program (TTDP) provides funding to local employers for highlevel IT training of both potential employees and incumbent workers. The training is administered by local training providers, including corporate training companies, workforce development organizations and educational institutions.
Strategic partners: Oakland Community College and Oakland County Michigan Works! Workforce Development Division Current employer partners: HP Enterprise Services and Lakeside Software, Inc. The TTDP is an innovative new model in the talent development arena. While traditional programs train candidates for IT positions that may or may not already exist, the TTDP allows employers to identify their desired candidates for available positions and then train them to the needed level of IT skill. In this way, the program addresses the skills gap in the IT industry — caused in part by the rapid development of new technologies — simultaneously deepening the IT talent pool and reducing unemployment.
14 AUTOMATION ALLEY 2012 annual report
Training through the TTDP is employer-driven and includes industry-recognized vendor certifications for select IT occupations, such as software developers for applications, database administrators, computer specialists and computer user support specialists.
MODELING, SIMULATION AND VISUALIZATION Automation Alley’s ongoing efforts to match businesses in need of skilled workers with high-level talent led to the launch of a regional modeling, simulation and visualization (MSV) initiative in 2012. MSV refers to the process of developing a digital model, applying simulation to extract data from the model and then interacting with the data. MSV is used across a broad variety of industries, including automotive, medical devices, defense, homeland security, construction, aerospace, entertainment, gaming and advanced manufacturing. Automation Alley is spearheading the initiative to make Southeast Michigan a national center of excellence for MSV. The initiative aims to attract talented workers to the region to fill the many available MSV-related positions at local businesses as well as to train existing workers in MSV skills. Regional partners include Rave Computer, Lawrence Technological University and Oakland University. Automation Alley’s role in the initiative is: • Assisting local educational institutions in the creation of MSV-related certifications, programming and curriculum • Branding Southeast Michigan as a future center for MSV training, talent and jobs • Acting as the voice of manufacturing businesses in the region to represent their needs to other businesses, educational institutions and government entities
• Facilitating dialogue between educational institutions, businesses and government entities on the future of MSV in Southeast Michigan The Voice of Business: Modeling, Simulation and Visualization In April, Automation Alley’s Workforce and Education Committee presented “The Voice of Business: Modeling, Simulation and Visualization,” the second in a series of symposiums bringing industry representatives and educators together to discuss hiring and training needs. Hosted by the Velocity Collaboration Center in Sterling Heights, the event featured keynote speaker Dr. John Sokolowski, executive director at the Virginia Modeling, Analysis and Simulation Center and associate professor of MSV engineering at Old Dominion University. Sokolowski was the first person to receive a Ph.D. in engineering with a concentration in modeling and simulation.
STEM EDUCATION In 2012, Automation Alley, along with its partners in the Michigan education community, the U.S. Army TACOM Life Cycle Management Command, and the U.S. Army Tank Automotive Research, Development and Engineering Center (TARDEC), led an effort in Lansing to draw attention to the importance of STEM (science, technology, engineering and mathematics) education in Michigan and to promote the work of the state’s educators
to further the growth of STEM participation across the state. At the prompting of these organizations, a resolution to declare March 25-31, 2012 as Michigan STEM Awareness Week was proposed in the Michigan Senate by Sen. John Pappageorge (13th District, Troy) with the support of Sens. Jim Marleau (12th District, Lake Orion), Darwin Booher (35th District, Evart), Steve Bieda (9th District, Warren), Mike Nofs (19th District, Jackson), Mark Jansen (28th District, Gaines Township), Patrick Colbeck (7th District, Canton), Roger Kahn (32nd District, Saginaw) and Dave Hildenbrand (29th District, Grand Rapids).
YES! EXPO In November, Automation Alley was an advising and supporting partner of the YES! (Youth Engineering and Science) Expo, which brought tens of thousands of Michigan middle school and high school students, chaperones and educators to Ford Field in Detroit to explore STEM fields and careers. Demonstrations and interactive displays from corporations, universities, government agencies and nonprofit organizations allowed students to experience the diversity of STEM opportunities in Michigan.
The resolution was adopted by the Senate on Feb. 28, 2012. The resolution emphasized the importance of STEM not only for the future of education in Michigan but also for the continued economic growth of the state and advancement of the workforce.
“I WASN’T READY TO RETIRE. BUT TO KEEP WORKING, I NEEDED TO CHANGE CAREERS.” Bruce Forbes Customer Service Representative, Just Energy Corporation
AUTOMATION ALLEY MATCHMAKING SUCCESS
“WE HELP WORKERS ACQUIRE NEW SKILLS FOR TECHNOLOGY PROFESSIONS.” Karol Friedman Talent Development Specialist, Automation Alley
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AUTOMATION ALLEY 2012 annual report
In 2012, Automation Alley received a work directive from the U.S. Army to conduct a Sustainment Engineering Risk Assessment (SERA) on the Light Tactical Vehicle family of vehicles (FOV), which includes the High Mobility Multipurpose Wheeled Vehicle (HMMWV) or “Humvee” FOV. Photo courtesy of The Defense Video & Imagery Distribution System (DVIDS).
Defense and Manufacturing Automation Alley’s defense office in Sterling Heights is strategically positioned in the heart of Michigan’s Defense Corridor to act as a matchmaker between local manufacturing businesses and opportunities in the defense industry.
Automation Alley’s contract with the U.S. Army Tank Automotive Research, Development and Engineering Center (TARDEC) supports the Diminishing Manufacturing Sources and Material Shortages Program (DMSMS) at the TACOM Life Cycle Management Command (LCMC). DMSMS refers to the loss or impending loss of parts manufacturers or materials suppliers used by the Department of Defense (DOD). Automation Alley’s team of engineers has developed two unique tools to support the U.S. Army’s supply chain by: 1) identifying and vetting companies within the U.S. industrial base with the capabilities to provide needed skills, parts and materials, and 2) identifying components of families of vehicles (FOVs) at risk of becoming unavailable. In 2012, Automation Alley was recognized for its capabilities in the defense industry by the Office of the Secretary of Defense’s Manufacturing
16 AUTOMATION ALLEY 2012 annual report
and Industrial Base Policy Group in its Annual Industrial Capabilities Report to Congress. The report listed Automation Alley’s core competencies and noted its ability to utilize a disciplined and focused approach to identify sustainment-related risks associated with a weapon system or platform or across platforms.
VISCOM The industrial base visibility and communication tool, or VisCom, aggregates information on companies from across the U.S., including core competencies, financial viability and contact information. VisCom allows Automation Alley to identify companies capable of providing needed replacement parts for defense systems when those parts are no longer in production or reverse engineering parts when technical data is unavailable. It also makes it possible to communicate with those companies individually or in a group.
“USING OUR PROTOTYPE AND REVERSE ENGINEERING EXPERIENCE, WE CAN RECREATE DEFENSE PARTS AND THEIR TECHNICAL DATA.” Ken Morgulec Business Development, RCO Engineering, Inc.
SUSTAINMENT ENGINEERING RISK ASSESSMENTS Sustainment Engineering Risk Assessments (SERAs) are detailed studies of all repair parts and replacement parts in a FOV. SERAs extract data on each part, and the companies that manufacture them, and the companies that manufacture them from many disparate databases, creating new information. Analysis of the data makes it possible to take proactive measures to sustain aging defense systems — a priority for the DOD as budget cuts make it necessary to keep equipment in the field for longer periods rather than replacing it.
SERAS ON ABRAMS TANKS In 2011, Automation Alley began a SERA on the Abrams FOV, the last phase of which was completed in late 2012. There are three variants of the Abrams, a tracked vehicle that entered Army service in 1980 and is manufactured by General Dynamics Land Systems.
engineering projects for the U.S. Army. These systems were no longer produced by the original equipment manufacturer, and the technical data needed to reproduce them was unavailable. Using local companies, Automation Alley AUTOMATION recreated the systems and produced ALLEY technical data MATCHMAKING packages for TARDEC, SUCCESS enabling the system to be procured and manufactured by another company in the future.
257
Clients or companies that have met with Automation Alley’s defense consultants since 2010
NEW WORK DIRECTIVES Automation Alley received two new work directives from the U.S. Army with a combined value of approximately $1.6 million. The first work directive is a reverse engineering project for the Small Unit Support Vehicle (SUSV), a tracked, all-terrain carrier used by the U.S. Army and Marines. The second directive is for SERAs on two FOVs, the Bradley Fighting Vehicle (BFV) and the Light Tactical Vehicle (LTV), which includes the well-known High Mobility Multipurpose Wheeled Vehicle (HMMWV) or “Humvee” FOV.
REVERSE ENGINEERING PROJECTS In 2012, Automation Alley managed two major reverse
IMPROVED RIBBON BRIDGE Automation Alley reverse engineered and fabricated a support tower for this portable bridge. Similar in function to a suspension bridge, when coupled with cables, the tower stabilizes a floating bridge over a fast-moving stream. A pair of each of the components was fabricated to create a fully functioning system. ADVANCED AVIATION FORWARD AREA REFUELING SYSTEM (AAFARS) ENGINE/PUMP ASSEMBLY The Advanced Aviation Forward Area Refueling System (AAFARS) Engine/Pump Assembly is a lightweight modular aircraft refueling system for use when refueling sites are inaccessible by ground transport or emergency refueling situations. It can be carried by four soldiers and set up in 20 minutes and is capable of being air dropped. Automation Alley developed a complete technical data package for the system and built a functional prototype.
“WE HELP FIND REPLACEMENTS FOR DEFENSE PARTS AND MATERIALS THAT NO LONGER EXIST.” Dan Raubinger Director of Defense and Manufacturing, Automation Alley
17 AUTOMATION ALLEY 2012 annual report
International Business Services TRADE MISSIONS Recognizing that today’s businesses must compete on a global level, Automation Alley matches local businesses to potential customers and partners in high-growth international markets. Since 1999, Automation Alley has led 17 trade missions to locations around the world in an effort to help local companies expand and diversify their businesses and to promote Michigan exports overseas. In 2012, 32 local companies participated in Automation Alley trade missions to build connections with business in Brazil, Qatar and the United Arab Emirates and with the U.S. Army at two Association of the United States Army (AUSA) events.
32
Companies that participated in Automation Alley trade missions in 2012
17
Trade missions to locations around the world since 2001
In December, six local companies joined Automation Alley on a trade mission to the United Arab Emirates and Qatar. Trade missions allow small to medium-sized enterprises to explore opportunities for expanding into high-growth markets around the world.
To date, Automation Alley’s trade mission activities have resulted in more than $251 million in export sales for local companies - an average of more than $14.8 million per mission. BRAZIL In May, nine local businesses and organizations joined Automation Alley on a trade mission to Brazil, making stops in Sao Paolo and Rio de Janeiro. As Latin America’s largest market and host country to the 2014 World Cup and 2016 Summer Olympics, Brazil is eager to do business with U.S. companies, participants reported. QATAR AND UNITED ARAB EMIRATES Six local companies joined Automation Alley on a trade mission to the Middle East in December. Highlights included an invitation to the home of the U.S. Ambassador to Qatar. AUSA EVENTS In 2012, Automation Alley led domestic trade missions to two AUSA events. In October, 12 local businesses and organizations joined Automation Alley for the AUSA Annual Meeting and Exposition in Washington, D.C., including partners Macomb County, the Michigan National Guard and the state of Michigan.
“I ALWAYS MAINTAIN THAT TECHNICAL KNOW-WHO IS AS IMPORTANT AS TECHNICAL KNOW-HOW.” Dan Kocks, CEO, Global Impact Group, MFG
international tenants, including ED USA Corp., Reply, Inc. and Stola Engineering, N.A., all from Italy, as well as Fuji Assembly Systems, Inc. from Japan and FOOKE GmbH from Germany. Reply went on to set up a permanent facility in Auburn Hills, Mich.
NATIONAL BUSINESS INCUBATION ASSOCIATION DESIGNATION
Automation Alley was awarded the National Business Incubation Association’s (NBIA) Soft Landings International Incubator designation in 2012. The award recognizes Automation Alley’s efforts to support international companies “Automation Alley did a AUTOMATION looking to do business really great job organizing ALLEY in Southeast Michigan. my meetings in Qatar and MATCHMAKING The NBIA designation is the U.A.E. They were with the SUCCESS given to programs that right people, and of the 12 meetings that I had, at least are particularly capable of helping eight of them could be an effective distributor. The trip international exceeded my expectations.” companies enter the local market. John Stinson President, Clear Image Devices
In February, 10 local businesses and organizations participated in a mission to the AUSA Winter Symposium and Exposition in Fort Lauderdale, Florida. At this event, Automation Alley shared the state of Michigan pavilion with partners the Michigan Economic Development Corporation (MEDC) and Macomb County.
BUSINESS ATTRACTION In its second year of operation, Automation Alley’s International Business Center hosted five
According to the NBIA, “Automation Alley was selected for the program because of its slate of business services for non-domestic firms and its demonstrated success at helping these firms enter the U.S. market.” Automation Alley joined the ranks of only 24 other business incubation programs from around the world that had earned the designation since the NBIA began the program in 2005.
“I KNOW THE RIGHT PEOPLE CAN OPEN DOORS. IT’S FINDING WHO CAN DO IT FOR ME IN INDIA.” Bob Ruffini, President, Fluxtrol, Inc.
19 AUTOMATION ALLEY 2012 annual report
Entrepreneurship NEW INVESTMENTS In 2012, Automation Alley invested in four innovative local tech startups: ARE YOU A HUMAN Born out of a failed attempt to purchase concert tickets after they were bought up by automated “bots,” Detroit-based Are You a Human are the creators of PlayThru, an alternative to the notoriously annoying CAPTCHA security feature found on sites across the Web. Complex enough to differentiate humans from robots, the games are also simple and fun enough that human users aren’t turned away. TERRAYEBO, INC. Madison Heights-based TerraYebo creates social Web and mobile experiences with the end goal of supporting good causes around the world. For example, their “My Inch of the Earth” application allows users to claim their favorite inch — a particular latitude and longitude — on the globe for $1 per month, a portion of which goes to support nonprofits and global causes like Leader Dogs for the Blind and Fair Trade USA. They can share pictures, stories and videos describing why this place is important to them, then invite friends to choose the inch next to them — or anywhere in the world — via social media. STIK.COM Silicon Valley transplant Stik.com takes the referral process to the social media world. Now based in Detroit, Stik.com capitalizes on the idea that people usually ask their friends and family for recommendations before choosing a service professional like a mortgage broker or financial planner. With Stik.com, users can search for service professionals — real estate agents, photographers, veterinarians and more — and
20 AUTOMATION ALLEY 2012 annual report
In 2012, Automation Alley invested in four local high-tech startups, including Stik.com, which was founded by Jay Gierak (left) and Nathan Labenz (right).
see which local providers are recommended by their network of Facebook friends. BUZ.FM INC. Lake Orion-based Buz.fm develops social media, digital marketing and advertising technologies. Through its unique Buz.fm platform, the company develops and hosts Internet-based products and services that provide advertising and promotion for companies of all sizes.
INVESTMENT UPDATE TANGENT MEDICAL A medical startup in the business of developing
innovative products for IV therapy, Tangent was issued a patent in 2012 and cleared by the FDA for technology included in their NovaCath™ Secure IV Catheter System. The system is designed to improve clinical outcomes, minimize occupational exposure to blood and standardize clinical practice. The company also closed two successful rounds of venture funding. ACCIO ENERGY, INC. This alternative energy company develops aerovoltaic wind energy systems, which generate electricity from wind without moving parts. In 2012, the company also closed successful angel and venture rounds of funding.
“I KNOW I HAVE A GREAT CONCEPT. I ALSO KNOW HAVING EXPERIENCED ADVISERS IS KEY TO OUR SUCCESS.” Michele Favoretto Founder and CEO, TerraYebo, Inc.
35
SINCE 2004: High-tech companies or projects invested in
/////////////////////////////////////////////////////////
$7.96 million
Investments in local high-tech companies or projects
CRITICAL SIGNAL TECHNOLOGIES INC. The fourth-largest independent provider of Personal Emergency Response Systems (PERS), Critical Signal Technologies (CST) also provides medication management systems and telehealth solutions. CST hired more than 50 new employees in 2012 and plans to hire 25-50 additional employees in 2013. The company also has plans to move from Farmington Hills to a 22,000-square foot facility in Novi, doubling the size of its current facility.
ADAMS ENTREPRENEUR FELLOWSHIP As host organization for the Adams Entrepreneur Fellowship, Automation Alley is matching talented recent college and university graduates with employment opportunities at early-stage tech companies in Southeast Michigan. The program provides opportunities for fellows to engage with early-stage companies at the management level and offers mentoring by company leadership as well as program director Terry Cross, founder and chairman of Windward Associates LLC, and coordinator Thomas Anderson, senior director at Automation Alley.
In addition to daily job responsibilities, the fellows are encouraged to participate in local entrepreneurial, business development and leadership events and given opportunities to network with other young emerging leaders in the region.
AUTOMATION ALLEY MATCHMAKING SUCCESS
The program aims to highlight entrepreneurism as a viable career choice and to help build a thriving community of serial entrepreneurs. Ultimately, the program’s leaders hope to see these young, talented entrepreneurs go on to create their own high-growth enterprises — leading to regional economic growth and additional entrepreneurial opportunities. Four fellows entered the program in 2012 and took positions at emerging tech startups across metro Detroit, including Are You A Human in Detroit, Larky in Ann Arbor and Billhighway in Troy. One fellow is using the opportunity to develop his own company, which he started through the Blackstone LaunchPad program at Wayne State University, at TechTown in Detroit.
“WE HELP ENTREPRENEURS WITH EVERYTHING FROM BUSINESS STRATEGY AND CUSTOMER ATTRACTION TO SEED FUNDING.” Thomas Anderson, Ph.D. Senior Director, Automation Alley
21 AUTOMATION ALLEY 2012 annual report
2012 Technology Industry Report Automation Alley aims to be the driving force behind both the growth of Southeast Michigan’s economy and the improvement of the image of the region’s economy. There’s a key difference between the two, and recent history and media reports have shown that the improvement of the former does not necessarily lead to the improvement of the latter. Considerable effort is required to turn a reputation around. As marketing gurus know, branding is everything. And when it comes to attracting talent and investment, branding our region as a center for cutting-edge tech companies and highly skilled tech talent is critical. That’s why, every year, Automation Alley commissions the Anderson Economic Group of East Lansing to compile the annual Technology Industry Report. This report is the true story of today’s technology economy in Southeast Michigan — and the findings serve as a strong foundation on which to build a new reputation. For decades, Southeast Michigan has been known as the automotive capital of the world and the manufacturing center of the Midwest — but along the way, we’ve quietly become a leader among the nation’s technology economies.
SEATTLE, WA
MINNEAPOLIS-ST. PAUL, MN
CHICAGO, IL
GRAND RAPIDS, MI
AUTOMATION ALLEY REGION CLEVELAND, OH
SAN JOSESANTA CLARA, CA
BOSTON, MA
The report serves to benchmark the metro Detroit region against 14 other major technology economies in the Midwest and across the country
PITTSBURGH, PA
CINCINNATI, OH
INDIANAPOLIS, IN ATLANTA, GA
AUSTIN, TX
22 AUTOMATION ALLEY 2012 annual report
DALLAS-FORT WORTH, TX
ST. LOUIS, MO
In this year’s report, titled “From Rust to Resurgence: Detroit’s Regional Technology Economy,” metro Detroit ranks first in a number of categories:
1st
1st
1st
1st
1st
3rd
4th
5th
in the number of people working in architectural and engineering occupations.
in the total number of advanced automotive industry establishments.
in the number of engineering and engineering technologies degrees completed at colleges and universities in the region.
in the total number of all STEM degrees completed, trailing only Chicago and Boston.
in architectural and engineering industry employment.
in the percentage of total employment (12.9) that is within the technology industry.
in advanced automotive sector employment.
in the total number of jobs (210,984) in technology sectors.
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Among the nine Midwest regions analyzed, the Greater Detroit region ranked:
1st
1st
1st
1st
2nd
3rd
in the share of total employment that is in the technology industry.
in architectural and engineering employment at the industry and occupation levels.
in advanced automotive industry employment and establishment count.
in total STEM degree completions, trailing only the Chicago area.
in the share of total jobs that are in technology occupations.
in utility patents issued, trailing only Chicago and Minneapolis by a small margin.
23 AUTOMATION ALLEY 2012 annual report
X-OLOGY Magazine As a leading technology business association, Automation Alley seeks to keep its members and stakeholders informed of technology industry hot topics and trends. X-OLOGY Magazine is the tool for the job, offering a quarterly look at the individuals, innovations and organizations driving the growth of the tech economy across the region and the nation. In 2012, X-OLOGY explored technology in the water, auto and medical industries and highlighted the region’s business incubators and accelerators. In addition, each issue includes a news update from Automation Alley, an in-depth look at a regional educational program or initiative and profiles of local tech industry leaders.
24 AUTOMATION ALLEY 2012 annual report
PEOPLE PROFILES IN 2012: WINTER Amy Butler, Executive Director, OU INCubator Ron Gardhouse, President and CEO, NextEnergy Julie Gustafson, Executive Director, Macomb-OU INCubator Ken Rogers, Executive Director, Automation Alley Leslie Smith, President and CEO, TechTown SPRING Guglielmo “Gil” Pezza, Director, Water Technologies, Michigan Economic Development Corporation Joan Rose, Ph.D., Homer Nowlin Chair in Water Research, Michigan State University SUMMER Dr. David Cole, Chairman and Co-Founder, AutoHarvest and Chairman Emeritus, Center for Automotive Research Elizabeth Baron, Technical Specialist, Ford Immersive Vehicle Evaluation (FiVE) Lab, Product Development, Ford Motor Company FALL Duane Day, Founder, President and CEO, Molecular Innovations Inc.
Automation Alley’s 12th Annual Awards Gala was held at the GM Heritage Center in Sterling Heights. (Left to right) Scott Goemmel, president of Automation Alley’s board of directors, talks about historic innovations; Jake Sigal, CEO and founder of Livio Radio, accepts the award for Entrepreneur of the Year; nearly 200 historic vehicles and concept cars were on display at the GM Heritage Center. Photos by Rosh Sillars.
Automation Alley Events AWARDS GALA Each year, Automation Alley recognizes the accomplishments and vision of the individuals and organizations leading Southeast Michigan’s technology business community at the Annual Awards Gala. The 12th annual event was held at the GM Heritage Center, which provided a stunning backdrop of historic vehicles, concept cars and automobile memorabilia. Nearly 400 Automation Alley members and business leaders were in attendance at the black-tie event. Emceed by Chris Holman, publisher of the Greater Lansing Business Monthly, the event was a reminder of the remarkable innovations, programs, companies and people that make Southeast Michigan a leading technology center in America. “People talk about Southeast Michigan needing a renaissance, a comeback,” said Automation Alley Executive Director Ken Rogers in his address. “We need to change the way we see ourselves. This community – today – is a technology force in America, and tonight’s award winners are powerful examples of that.”
With remarks given by Doug Smith, senior vice president of business and community development at the Michigan Economic Development Corporation; U.S. Senator Debbie Stabenow; and Macomb County Executive Mark Hackel, the event also pointed to the importance of regional collaboration in driving and sustaining economic growth. 2012 AWARDS GALA WINNERS • Automation Alley Member of the Year: Laura Oliveto, Basso Design Group • Educational Program of the Year: Fifth Core™ World Language & Culture Program (Oxford Community Schools) • Entrepreneur of the Year: Jake Sigal, Livio Radio • Global Trader of the Year: Dan Kocks, Global Impact Group, MFG • Technology Company of the Year: GalaxE. Solutions Inc.
NETWORKING EVENTS MEMBER NETWORKING Member Networking events provide an opportunity for Automation Alley members to
get to know each other and to discuss ways to do business together. • Spring: City of Novi • Summer: TVS Communication Solutions • Fall: Evans Distribution Systems IMPACT 2012 More than 200 people attended IMPACT 2012, Automation Alley’s annual business conference, at the Centerpoint Marriott in Auburn Hills. In its second year, IMPACT is designed to bring member companies from diverse industries together to form alliances and strengthen their ties within the region. The event featured a trade show, educational speakers and a networking reception. MORNING MEMBER MINGLE Morning Member Mingle events help Automation Alley members start the day off right, providing an opportunity for networking before ever setting foot in the office. Host companies in 2012 included JVS, Stage 3 Productions, Inc. and Velocity.
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AUTOMATION ALLEY 2012 annual report
Committee Activities BUSINESS GROWTH The committee planned and executed the IMPACT 2012 business conference, attended by hundreds of professionals from across the region, and planned the IMPACT 2013 business conference, held in February 2013. They also presented a three-part series titled “The Art of Networking.” This series included events on traditional, online and speed networking. In addition, social networking events featuring a scavenger hunt on the Detroit RiverWalk and a bowling competition were designed to allow for more relaxed networking with a built-in icebreaker to get people talking.
EDUCATION AND WORKFORCE In October, the committee, in partnership
“OUR SOFTWARE AND SOLUTIONS HELP MANUFACTURERS TRACK PROCESSES, EQUIPMENT AND COMPONENTS.” Dan Reed President, HTE Inc. Manufacturing Committee Co-chair
AUTOMATION ALLEY MATCHMAKING SUCCESS
with The Center for Michigan, hosted and sponsored one of several statewide community conversations titled “The Future of Education” to gather perspectives and preferences of Michigan residents on major education policy. In April, the committee hosted “The Voice of Business: Modeling, Simulation and Visualization,” the second in a series of symposiums bringing industry representatives and educators together to discuss hiring and training needs. The event featured a local industry panel and keynote message from Dr. John Sokolowski, executive director at the Virginia Modeling, Analysis and Simulation Center and associate professor of modeling, simulation and visualization engineering at Old Dominion University. Sokolowski was the first person to receive a Ph.D. in engineering with a concentration in modeling and simulation.
FINANCE The committee launched the Finance Advisory Solutions Consulting Program, which pairs second-stage companies with local financial experts for free financial advising. Advisors discuss companies’ capital needs, growth capital opportunities and tips for navigating financial resources. The program kicked off with an exclusive invitation-only event attended by area investors, venture capitalists and other members of the local finance community.
MANUFACTURING New in 2012, this committee’s mission is to recognize, promote and support our regional manufacturing brand; foster talent enhancement, best practice process collaboration and competitiveness; and encourage both local and global opportunities for our member companies. The committee discussed the scope of talent issues that affect local manufacturing companies and planned “Making Manufacturing a Priority,” a networking event exclusively for area manufacturers, which took place in January 2013. In addition, the committee continues to plan for participation in a major regional manufacturing event for 2014.
TECHNOLOGY The committee welcomed the U.S. Patent and Trademark Office (USPTO) Deputy Chief of Staff Azam Khan, responsible for the new Detroit office of the USPTO, as the keynote speaker for a seminar titled “Turning Intellectual Property Into New Product Profits.” The committee also presented “Reaching for the Clouds: What Every Small Business Should be Preparing For,” a discussion on cloud computing featuring local experts.
GOVERNMENT AFFAIRS At this year’s meetings, this Foundation Memberonly committee welcomed the following legislators: Rep. Chuck Moss (R-50, Birmingham), Sen. John Pappageorge (R-13, Troy) and Sen. Mike Kowall (R- 15, White Lake Township).
“MANUFACTURING HAS GONE FROM BEING ABOUT VOLUME TO VERSATILITY AND ACCOUNTABILITY - TRACKING EVERY PART.” Homer Harrison President, HTH Group LLC Manufacturing Committee Co-chair
Automation Alley Staff /////////////////////////////////////////////////////////
Ken Rogers Executive Director Thomas Anderson Nicole Beattie John Bedz Sharon Blumeno Cheryl Buscemi Tony Castillo Jennifer Chinn Kim Cross Karol Friedman Mary Gerlach Alysia Green Shaun Hayes Raphael Henderson Dominique Holmes Catie Keomahavong Remi Kathawa Kelly Kozlowski Kim Krutsch
Senior Director Public Affairs Copywriter Defense and Automotive Consultant Senior Business Development Executive Member Relations Manager Defense and Manufacturing Project Leader Events Manager Director, Philanthropy Talent Development Specialist International Business Services Intern Director, Talent Development Member Relations Specialist Graphics and Web Intern Philanthropy Intern Business Development Specialist International Business Services Intern Director, Public Affairs Administrative Assistant
Lisa Lasser Claire Leigh-Monstevens Alexa Lipman Pam Mullen Noel Nevshehir Andrea Oleszczak Terry Perkon Genna Piscopo Dan Raubinger Glen Sandberg Anil Sanne John Shirk Erin Sommerville Natalia Stasiw Anne Walter Tom Whinihan Kyle Wojan
International Business Services Supervisor Events Intern International Business Services Specialist Executive Assistant Director, International Business Services Director, Member Services and Marketing Defense and Manufacturing Database Consultant Member Relations Supervisor Director, Defense and Manufacturing Public Affairs Administrator Defense and Manufacturing Project Leader Accountant and Human Resources Manager Media Relations Specialist Entrepreneurial Services Manager Defense and Manufacturing Executive Assistant Defense and Manufacturing Project Engineer Defense and Manufacturing Project Engineer
OUR MISSION Automation Alley exists to grow the innovation cluster of Southeast Michigan. We believe in a bright technology future for our state that is innovation-led and driven by exporting. We create business development opportunities and results for our members and stakeholders who share our values.
By helping our members achieve success, Automation Alley increases the quality of life in Michigan.
OUR VISION Southeast Michigan will be globally acknowledged as the leading technology and innovation region in the United States by 2020.
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