Automation Alley 2013 Annual Report by Automation Alley

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A N N U A L

R E P O R T

AUTOMATION ALLEY Technology’s Matchmaker for Business®

n 2013, Automation Alley made significant strides in making its vision — that Southeast Michigan would be globally acknowledged as the leading technology and innovation region in the United States —a reality. 2013 saw increased tech sector employment in the region, new tech businesses opening, and the expansion of the entrepreneurial and tech community in downtown Detroit. News headlines reflected the region’s growing reputation as a leading tech hub in the U.S. In addition to bringing local businesses together to network and learn, Automation Alley invested in new tech companies, helped companies grow overseas while enhancing the region’s reputation in the global community, created high-level IT jobs and developed technology to assist the military.

M E S S AG E F R O M T H E E X E C U T I V E D I R E C TO R

Thank you for taking the time to read our 2013 Annual Report. The report gives us an opportunity to share both the successes of the past year and our vision for the year to come. Looking back, I see a year marked by hard work and significant accomplishments. And looking ahead, I see what I believe will be a monumental year for our organization. When I reflect on the 15-year history of Automation Alley, there are a few years in particular that stand out in my memory — years when Automation Alley broke through a ceiling and grew in a way we hadn’t thought possible before. I think of 2001 — just two years after Oakland County Executive L. Brooks Patterson founded Automation Alley — when we launched our highly successful trade mission program.

And I think of 2010, when we opened an office in the heart of the Macomb County defense corridor, allowing us to connect local businesses to the defense industry. I believe the achievements of 2014 will exceed these and other landmark years in our history, and that’s due in large part to the hard work of our staff in 2013. Automation Alley is known for being quick on its feet when it comes to responding to the needs of the business community. In 2014, we’re prepared to respond in a big way. Stay tuned. Sincerely,

I think of 2004, when we opened our headquarters in Troy, having grown from an “office” that was really just a dressedup closet!

Ken Rogers Executive Director

TA B L E O F C O N T E N TS

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06 FO U N DAT I O N M E M B E RS

REGIONAL PA RT N E RS H I P S

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ECONOMIC AND COMMUNITY I M PAC T

M E M B E RS H I P B R E A K D OW N AND REVENUES

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DETROIT OFFICE AU TO M AT I O N ALLEY FUND

M E S S AG E F R O M T H E P R E S I D E N T

During the course of 2013, when people asked me, “What’s happening at Automation Alley?” I had a hard time deciding how to respond. With all the activity that was taking place, it was difficult to know where to start. In 2012, we launched new programs like the Manufacturing Committee and the Technical Talent Development Program (TTDP). In 2013, we saw those programs and initiatives mature and start to produce results.

engineering project for the U.S. Army and further developed its Sustainment Engineering Risk Assessment tool.

Automation Alley intensified its focus on creating opportunities for manufacturers in Southeast Michigan in 2013. The Manufacturing Committee led the way, organizing events to bring business leaders and experts together to discuss the challenges the industry faces today. Through the TTDP Challenge Fund, 11 local companies received funding for training of new and incumbent workers in high-level IT skills and certifications. To date, 240 individuals have participated in TTDP-funded training. Longstanding Automation Alley programs also saw lots of activity this year. Automation Alley invested in two high-tech startup companies and matched four recent college graduates with local startups for year-long fellowships. Automation Alley brought 29 local companies and organizations on trade missions to international and domestic locales. The team at Automation Alley’s defense office completed a reverse

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TA L E N T D E V E LO P M E N T

To those of you who made an investment in Automation Alley this year — whether through your membership, your participation in a committee or your contribution to the Automation Alley Fund — the pages that follow are evidence of your wise decision. Together, we’re helping the technology sector of Southeast Michigan step confidently into the future. Sincerely, Scott Goemmel President Automation Alley Board of Directors

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DEFENSE AND M A N U FAC T U R I N G

And of course, any review of the past year would be incomplete without mention of Automation Alley’s newest office location: downtown Detroit. We partnered with Grand Circus Detroit, a new technology training institute located in the historic Broderick Tower, to bring Automation Alley’s programs and services to the city.

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ENTREPRENEURIAL S E RV I C E S

I N T E R N AT I O N A L B U S I N E S S S E RV I C E S

T E C H N O LO GY I N D U ST RY R E P O RT

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C O M M I TT E E AC T I V I T I E S AU TO M AT I O N A L L E Y E V E N TS

STA F F L I ST

AUTOMATION ALLEY 2013 ANNUAL REPORT

BOARD OF DIRECTORS PRESIDENT Scott Goemmel, SMG Capital Group SECRETARY Christine Estereicher, Chrysler Group LLC TREASURER Donald Clayton, Clayton & McKervey, P.C. ASSISTANT TREASURER Karen Mitchell, DTE Energy IMMEDIATE PAST PRESIDENT Brian McGinnity, HIROTEC AMERICA

BOARD MEMBERS Ken Rogers, Executive Director, Automation Alley

John Almstadt, Oakland County Workforce Development Board John Blanchard, General Motors John Boladian, DTE Energy Raymond Byers, Wayne County Rick Darter, Rave Computer Patrick Fetterman, Plex Systems, Inc. Matthew Gibb, Oakland County David Hay, Kelly Services, Inc. Donald Ishmael, Jr., General Dynamics Land Systems Bryce Kelley, Wayne County Kathryn Levine, Blue Cross Blue Shield Robert McMahan, Kettering University Virinder Moudgil, Lawrence Technological University Kurt Saldana, Quality Metalcraft John Shallman, Beaumont Health System Doug Smith, Michigan Economic Development Corporation Tracie Tillinger, Detroit Economic Growth Corporation Peter Webster, Dickinson Wright PLLC EX-OFFICIO Jerry Rush, Meritor, Inc. Stephen Cassin, Macomb County Government

REGIONAL PARTNERSHIPS The Southeast Michigan technology business community is widespread and diverse. Helping this community to grow and thrive requires a large network of resources and experts working together. That’s why Automation Alley collaborates with economic developers, chambers of commerce, business accelerators and nonprofits across the region. These partnerships allow Automation Alley to provide its members and clients with the best business resources available, to drive local economic growth, and to positively influence the stories being told around the globe about the people and businesses of Greater Detroit.

REGIONAL PARTNERS • America’s Small Business Development Center Michigan • Ann Arbor SPARK • Bizdom • Detroit Economic Growth Corporation • Detroit Regional Chamber • Economic Development Alliance of St. Clair County • Economic Development Council of Livingston County • Flint & Genesee Chamber of Commerce • Macomb-OU INCubator • Michigan Economic Development Corporation • Michigan Manufacturing Technology Center • Michigan SmartZones • Michigan Works! • National Automotive Center • New Economy Initiative for Southeast Michigan • NextEnergy • OU INC • Procurement Technical Assistance Centers of Michigan • TechTown Detroit • The Michigan Chapter of the National Defense Industrial Association

NATIONAL PARTNERS

GENESEE COUNTY

ST. CLAIR COUNTY

OAKLAND COUNTY

LIVINGSTON COUNTY

WASHTENAW COUNTY

• State Science and Technology Institute • SME • Technology Councils of North America • U.S. Commercial Service

MONROE COUNTY

WAYNE COUNTY

MACOMB COUNTY

AUTOMATION ALLEY 2013 ANNUAL REPORT

FOUNDATION MEMBERS 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.

OAKLAND

Troy Career Center

AUTOMATION ALLEY 2013 ANNUAL REPORT

MEMBERSHIP BREAKDOWN BY INDUSTRY (AS OF NOVEMBER 2013)

TECHNOLOGY AND MANUFACTURING

63%

PROFESSIONAL SERVICES

16%

GOVERNMENT

EDUCATION

ASSOCIATION/ NONPROFIT

MEMBERSHIP BENEFITS IN 2013 PRESS RELEASES POSTED ON AUTOMATIONALLEY.COM

JOBS POSTED ON MICHIGANTECHNOLOGYJOBS.COM

EVENTS POSTED ON AUTOMATIONALLEY.COM

COMMITTEE PARTICIPANTS

2,604 824

2,585 555

2012-2013 REVENUES (EXCLUDES AUTOMATION ALLEY PRE-SEED FUND)

Automation Alley is a 501(c)(6) nonprofit. Our work is made possible by the continued support of our members and through the work of our dedicated legislators at the local, state and federal levels. GOVERNMENT CONTRACTS

24%

GRANTS

38%

DUES

22% OTHER

3% EVENTS

CONTRIBUTED SERVICES

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ECONOMIC AND COMMUNITY IMPACT DEFENSE & MANUFACTURING

ENTREPRENEURIAL SERVICES

357 27,646

$8.59

clients or companies have met with Automation Alley’s defense consultants.

companies are listed in VisCom, Automation Alley’s industrial base visibility and communication tool.

million

Through the Automation Alley Pre-Seed Fund, Automation Alley has invested $8.59 million in 38 high-tech local startups, which have attracted $112.19 million in additional capital, including private equity, foundations, state and federal grants, etc.

INTERNATIONAL BUSINESS

TALENT DEVELOPMENT

8 139

13 240

Automation Alley has attracted eight foreign companies to the region since 2011. Automation Alley has led 139 companies on 20 trade missions. As a result of these missions and other export-related activities, local companies have made more than $282 million in export sales.

local companies have been awarded technical training funds through Automation Alley’s Technical Talent Development Program.

Eligible employees have participated in IT training funded by the TTDP.

AUTOMATION ALLEY FUND G

rowing the technology economy of Southeast Michigan starts with you. You can help Automation Alley grow companies, create jobs and ensure a bright future for Southeast Michigan. The Automation Alley Fund is a 501(c)(3) nonprofit created to support the mission of Automation Alley. Your charitable contributions to the Automation Alley Fund help grow and sustain a variety of opportunities and programs, including: • Business development programs that help local companies build connections, gain expertise and increase their clients and customers • Seed fund investments to help entrepreneurs grow new high-tech companies and jobs • Talent development programs to equip local workers with in-demand, hightech skills • Trade missions to international and domestic locales for companies looking to expand into new markets • Programs that support our troops at home and abroad by maintaining important equipment and defense systems

OUR MISSION

Automation Alley exists to grow the innovation cluster of Southeast Michigan. We believe in a bright technology future for our state. 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.

LIGHT RAIL PEOPLE MOVER GRAND PRIX LI GalaxE. SOLUTIONS MO

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YOUR TOWN URBAN RENEWAL GENERAL MOTORS

TIGERS

DOWNTO MOTOR CITY

DETRO A

GRAND CIRCUS TREE LIGHTING

50 PERCENT GAIN IN MEDIAN

GRAND BIKE

RIVER

TOURS RED WINGS MOTOWN RENAISSANCE CENTER

PAST TECHTOWN FORD MOTOR CO. $ 5 5 B I L L I O N I N E X P O RTS

URBAN DWELLING

PROGRESS RIVERWALK BELLE ISLE

etroit brings a flood of words, images, sounds and smells — mental impressions, you might call them— to the minds of any who have spent more than a moment passing through. We want to be one of those impressions. While Automation Alley has been on the minds of many Detroit businesses and organizations for years — in fact, some of Automation Alley’s first members were based in Detroit — we want to be among the first things that come to the mind of business leaders when they think about growth, revitalization and renewal in Detroit. We want our brand to be synonymous with progress in the city. That’s why, in the fall of 2013, we joined forces with Grand Circus Detroit to make Automation Alley’s programs and services even more accessible to businesses in the D. Because while we aren’t the only solution to the challenges that face the new Detroit, we believe we can be an important part of its rebirth.

AUTOMATION ALLEY IN DETROIT Located inside Grand Circus Detroit 1570 Woodward Ave., Detroit, MI 48226

CHRYSLER IONS

CAMPUS MARTIUS OVIE SETS

GREEKTOWN

RIVERWALK HENRY FORD MIDTOWN HOCKEYTOWN

GROWTH OUR TOWN CHANGE

OWN

OIT AUTOMATION ALLEY

N HOME PRICES

FIFTH-FASTEST GROWING CITY FOR TECH JOBS

50,000 SMALL BUSINESS OWNERS

M@DISON BUILDING

T. PRESENT. FUTURE.

QUICKEN LOANS

BRODERICK TOWER

ABOVE: Automation Alley’s new Detroit office – at the historic Broderick Tower, inside Grand Circus Detroit – is located in the epicenter of the city’s vibrant and emerging technology startup community. LEFT: Automation Alley celebrated the opening of its Detroit office with a VIP event at the Detroit Opera House’s Black Box Theatre. Pictured are Robert Ficano, Wayne County executive; Genna Piscopo, member relations supervisor at Automation Alley; Ken Rogers, executive director of Automation Alley; and George Jackson, president and CEO of the Detroit Economic Growth Corporation.

Secure-24 of Southfield was one of the 11 companies awarded training funds through Automation Alley’s Technical Talent Development Program in 2013.

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TALENT DEVELOPMENT TECHNICAL TALENT DEVELOPMENT PROGRAM In 2013, Automation Alley made funding available to local companies for training of current and potential employees in high-level IT skills through the Technical Talent Development Program (TTDP) Challenge Fund. Two rounds of funding were issued, with the first round awarded to the following companies: • Beaumont Health System, Troy • BTR Associates, LLC, Bingham Farms • Coil Group, Rochester • Critical Signal Technologies, Farmington Hills • Delphi Automotive Systems, Auburn Hills • GalaxE.Solutions, Detroit • Gonzalez Production Systems, Madison Heights • Kyyba, Inc., Farmington Hills • Merrill Technologies, Sterling Heights • Reply, Inc., Auburn Hills • Secure-24, Southfield

240 240 eligible employees have participated in TTDP-funded training to date.

Applications for the second round of funding were issued in November, with funding to be awarded in 2014.

Training funds are administered by EdEn, Inc., a local project management firm specializing in economic and workforce development projects. Local training providers — including corporate training companies, workforce development organizations and educational institutions — deliver training to partner

employers. The specific type of training to be conducted is determined by the needs of the employer 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.

WHAT IS PLM?

Launched in 2012 with two employer partners, HP Enterprise Services of Pontiac and Lakeside Software, Inc. of Bloomfield Hills and Ann Arbor, the TTDP is a unique workforce development program designed to address the critical need for technical talent in Southeast Michigan. The program was made possible by a $5 million grant from the U.S. Department of Labor, Employment and Training Administration. Strategic partners for the program include Oakland Community College and Oakland County Michigan Works! Workforce Development Division.

“A strategic business approach that applies a consistent set of business solutions in support of the collaborative creation, management, dissemination, and use of product definition information across the extended enterprise, and spanning from product concept to end of life — integrating people, processes, business systems, and information.” - www.cimdata.com

The Automation Alley Technical Talent Development Program is made possible by a $5 million grant funded by the U.S. Department of Labor, Employment and Training Administration, and is an equal opportunity program. Auxiliary aids and services are available upon request to individuals with disabilities.

TOP: Automation Alley’s Technical Talent Development Program makes funding available to local companies for training of current and potential employees in high-level IT skills. BOTTOM: Representatives from the 11 companies that received funding through the Technical Talent Development Program in 2013 gather for an informational session.

PRODUCT LIFECYCLE MANAGEMENT

In 2013, Automation Alley continued to explore opportunities to establish Southeast Michigan as a center of excellence in Product Lifecycle Management (PLM). Through events such as “Closing the Manufacturing Skills Gap” and “Interns and Apprentices: Models to Design and Construct Future Talent,” Automation Alley brought representatives from business, academia and workforce development together to discuss how they might work together to attract talent, train workers and develop resources in the field of PLM.

STEM AWARENESS WEEK For the second consecutive year, the Michigan Senate declared the last week in March as Michigan STEM Awareness Week. Automation Alley, along with its partners in the Michigan education, business, government and nonprofit communities, led the effort in Lansing to highlight the significance of education in science, technology, engineering and math (STEM) education, to promote the work being done by educators to incorporate STEM in their classrooms, and to support the advancement and growth of STEM participation across the state. Adopted by the Senate on March 6, the resolution states that a STEM education is critical to the continued growth and prosperity of Michigan.

Offered by Senators Pappageorge, Proos, Nofs, Anderson, Marleau, Booher, Brandenburg, Bieda, Colbeck, Hopgood, Kowall and Pavlov SENATE RESOLUTION NO. 123 A RESOLUTION PROCLAIMING MARCH 24-30, 2013, AS MICHIGAN STEM AWARENESS WEEK.

WHEREAS, An education in science, technology, engineering, and mathematics (STEM) is critical to our children’s future and the continued growth and prosperity of Michigan; and WHEREAS, We look to deliver a worldclass education that will determine Michigan’s success in the 21st century; and WHEREAS, If Michigan students become inspired by science, technology, engineering, and mathematics at an early age, there is a greater likelihood they will want to enter those growing career fields when they graduate; and

STEM-related careers will advance Michigan’s workforce; and WHEREAS, STEM-related careers will be pivotal in the 21st century economy; and WHEREAS, A STEM education will ensure our state’s workforce will be better equipped for the jobs of tomorrow; now, therefore, be it RESOLVED BY THE SENATE, That we hereby proclaim the week of March 24-30, 2013, as Michigan STEM Awareness Week. We call upon parents, educators, community organizations, businesses, governments, and the people of Michigan to observe the week with appropriate programs and activities. Adopted by the Senate, March 6, 2013.

WHEREAS, Increased awareness in our community of STEM education and

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An M973 Small Unit Support Vehicle (SUSV) moves off the eastern bank of Engineer Lake at Fort Wainwright, Alaska, to test its amphibious capability. In 2013, Automation Alley completed a reverse engineering project on the SUSV, which is used by the military to support arctic and alpine operations. (Photo courtesy of http://www.dvidshub.net)

DEFENSE AND MANUFACTURING DEFENSE SUSV REVERSE ENGINEERING PROJECT Automation Alley completed a nine-month reverse engineering project for the Small Unit Support Vehicle (SUSV), a tracked vehicle designed to support infantry platoons and similarly sized units during operations in arctic and alpine conditions. The SUSV is used primarily by the Army National Guard in Vermont and Alaska. The original SUSV engine is no longer supported by the prime contractor or the original engine manufacturer. Automation Alley successfully completed three SUSVrelated assignments given by Warren-based U.S. Army Tank Automotive Research, Development and Engineering Center (TARDEC):

• Investigate the root cause of an engine failure in the field • Perform an obsolescence analysis on all of the engine’s repair parts • Reverse engineer and fabricate an Engine Cooling Enhancement Kit Automation Alley enlisted the help of several local

companies to complete the project. IAV Automotive Engineering, Inc. of Northville performed the engine failure analysis, and Applications 3D of Rochester Hills scanned many of the components. Other companies involved in the project included Detroit Radiator Corporation of Romulus; Miltech Industries, Inc. and Elmhirst Industries, Inc. of Sterling Heights; and Top Craft Tool, Inc. and Action Wood 360 of Clinton Township. SUSTAINMENT ENGINEERING RISK ASSESSMENT In 2013, Automation Alley continued to develop its Sustainment Engineering Risk Assessment (SERA) tool, beginning the process of transitioning the data to a Web-based system. A SERA is a detailed study of all repair parts in a Family of Vehicles. SERAs extract data on each part from many disparate government and private databases and include more than 80 data elements for each part: every maintenance record, part inventories, system usage data, ordering demand history, every historical procurement event, detailed supplier financial information and other logistical data, such as customer wait times for delivery and technical data ownership. SERAs integrate information from

“Automation Alley has been an invaluable partner with the U.S. Army, leading the way for the government to get their arms around their massive Ground System Vehicles Industrial Base Portfolio.

Automation Alley enlisted the help of several local companies to successfully complete its reverse engineering project on the SUSV, shown here carrying equipment for the U.S. military. (Photo courtesy of http://www.dvidshub.net)

VisCom — Automation Alley’s industrial base visibility and communication tool — with all available equipment data and TACOM Life Cycle Management Command’s (TACOM LCMC) Industrial Base Integration Team console, which documents and tracks command-level issues related to the industrial base. DMSMS CONFERENCE PRESENTATION Automation Alley Director of Defense and Manufacturing Dan Raubinger gave a presentation on the SERA tool at the DMSMS 2013 conference in Kissimmee, Fla. The presentation showcased the value SERAs could provide to various branches of the U.S. military.

MANUFACTURING In 2013, Automation Alley focused on expanding its involvement in the manufacturing arena. Automation Alley’s Manufacturing Committee and Education and Workforce Committee worked together to develop two

“Making Manufacturing a Priority” events. Hosted by Seco Tools in Troy and Pratt & Miller Engineering in New Hudson, the events focused on bringing industry leaders and experts together to network and strengthen the region’s manufacturing community. The two committees also partnered on events designed to address the manufacturing skills gap in Southeast Michigan: “Closing the Manufacturing Skills Gap” and “Interns and Apprentices: Models to Design and Construct Future Talent.” In addition, Automation Alley is partnering with SME to present THE BIG M Manufacturing Convergence in June 2014. The event is a gathering of industryleading companies and organizations from around the world to celebrate innovation in manufacturing. In 2013, Automation Alley worked with SME to develop programming and secure presenters. For more information, visit bigmevent.com.

WHAT IS VISCOM?

VisCom is Automation Alley’s industrial base visibility and communication tool. VisCom was developed to help Automation Alley provide industrial base support for TACOM LCMC’s Diminishing Manufacturing Sources and Material Shortages (DMSMS) Program. DMSMS is defined by the Department of Defense as the loss or impending loss of the last known manufacturer or supplier of raw material, production parts or repair parts. VisCom integrates data on companies across the U.S. and abroad, including specific capabilities (based on Federal Supply Class codes,

Management and execution of the Automation Alleydeveloped Sustainment Engineering Risk Assessment (SERA) model has been a unique tool the U.S. Army TACOM and TARDEC has applied. Automation Alley has been key to driving down Ground Combat and Combat Service Support Vehicles sustainment costs through risk assessment and mitigation efforts, such as finding new industrial base source and reverse engineering or re-engineering of critical weapon system components.” Randal C. Gaereminck, Associate Director Engineering, TARDEC

Product Service codes and core competencies), financial viability (based on the full range of Dun & Bradstreet financial health indicators) and contact information. VisCom also enables easy email communication with these suppliers individually or in any size group. Parts and materials suppliers can request to be included in VisCom by entering their contact information, core competencies, industry classifications (NAICS, FSC, and PSC), CAGE Code and D-U-N-S Numbers at www.dmsms-tardec-army.com.

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Automation Alley trade mission participants visit the Palacio de Bellas Artes, or Palace of Fine Arts, during a cultural tour of Mexico City.

INTERNATIONAL BUSINESS SERVICES TRADE MISSIONS “In 2013, we attended AUSA for the third time. While the event is always a fruitful opportunity to network with end-user customers and prime contractors, this year’s show was particularly rewarding because of Automation Alley. We had the opportunity to learn about the other businesses on the trip and connect with potential customers. We are looking forward to increasing our presence in the defense market, and we think our participation at AUSA with Automation Alley is helping us achieve this goal.”

Kurt Saldana, President of Quality Metalcraft

Automation Alley led two international trade missions in 2013. In May, nine local companies joined Automation Alley’s trade mission to Mexico, a country that boasts one of Latin America’s fastest growing economies. In September, another eight companies joined a mission to Indonesia and Singapore, a region that is experiencing a surge in new development and an emerging middle class with increased spending power. In addition, Automation Alley led a domestic trade mission in October to the Association of the United States Army (AUSA) 2013 Annual Meeting and Exposition in Washington, D.C., in partnership with Macomb County, the Michigan Defense Center and the Michigan Economic Development Corporation. Held every October in Washington, D.C., the AUSA Annual Meeting and Exposition is one of the largest land warfare expositions and professional development forums in the world. Twelve local companies participated in the mission.

“Attending the trade mission trip to Indonesia and Singapore with Automation Alley was the best thing I could have done to expand my business. It gave me the opportunity to meet and work with people and companies locally and internationally, including connecting with potential distributors for my products. The Automation Alley group was very well organized, a pleasure to be with and extremely helpful each step of the way.” Susan Gans, President of Geologix, Inc

To date, Automation Alley has led 139 companies on 20 trade missions to locations around the world. These missions, along with Automation Alley’s other exportrelated activities, have resulted in more than $282 million in export sales for local companies.

“E” STAR AWARD In May, Automation Alley was the proud recipient of the President’s “E” Star Award for Export Service. The “E” Awards recognize significant contributions that companies and organizations have made to increasing American exports. The “E” Star Award for Export Service recognizes previous “E” Award winners that have shown three years of continued support of exporters since first winning the “E” Award. Automation Alley was awarded the “E” Award for Export Service in 2008. Automation Alley is the only nonprofit organization in the Midwest to receive the “E” Star Award since the program’s inception more than 50 years ago.

INTERNATIONAL BUSINESS CENTER Automation Alley’s International Business Center (IBC) serves as a soft landing space for international companies interested in exploring business opportunities in Southeast Michigan. In 2013, tenants of the IBC included: • ALTEN • WIS ATeVi GmbH • FOOKE USA, Inc. • Fuji Assembly Systems, Inc. • CrossChasm • Reply Inc. • Stola NA Since 2011, Automation Alley has assisted eight foreign companies with establishing their operations in Southeast Michigan, which has created 371 jobs for the region.

“It’s not just simply being here with a desk and a chair. It has been a very helpful environment in many ways ... Automation Alley opens the opportunity for networking because other members could be potential new customers.” Gianluca Di Stefano, President of Reply Inc.

Reply Inc. established an office in Auburn Hills in early 2013 with help from Oakland County. In search of a temporary home while its new space was being renovated, Reply came to Automation Alley at the suggestion of Oakland County. The company took advantage of the IBC’s Video Conference Center to communicate with their offices and customers in Italy, where the company is headquartered. Reply staff also attended Automation Alley events to reach out to potential customers within the membership.

Foreign companies Automation Alley has assisted with establishing their operations in Southeast Michigan since 2011

TOP: Participants on Automation Alley’s trade mission to Mexico spent a day touring Mexico City to get acquainted with Mexican culture, customs and history. Pictured is the Metropolitan Cathedral of the Assumption of Mary of Mexico City, the oldest and largest Roman Catholic cathedral in the Americas and seat of the Roman Catholic Archdiocese of Mexico. LEFT: Automation Alley’s International Business Services Director Noel Nevshehir with Michigan Lt. Gov. Brian Calley on the trade mission to Mexico. RIGHT: Automation Alley’s Director of International Business Services Noel Nevshehir (center) and International Business Services Supervisor Lisa Lasser (far right) along with representatives from Sandler & Travis Trade Advisory during Automation Alley’s Trade Mission to Mexico. Sandler & Travis Trade Advisory presented a session on tax and legal issues in Mexico for trade mission participants.

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Jobs created in the region as a result of these partnerships

International trade missions led by Automation Alley in 2013

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ENTREPRENEURIAL SERVICES In 2013, Automation Alley grew its investment portfolio to 38 high-tech companies in Southeast Michigan.

NEW INVESTMENTS TERRAYEBO, INC. Automation Alley made a second investment in Madison Heights-based TerraYebo, Inc. (terrayebo. com), a socially conscious developer of enterprise Web and mobile solutions. In 2013, TerraYebo’s social fundraising platform, My Inch of the Earth, was selected to support Henry Ford Health System’s “Game On Cancer” campaign. The campaign allows fans of the Detroit Lions to purchase a virtual piece of Ford Field and then share their memories of the team, creating a virtual donor wall. Proceeds go to support more than 200 clinical research trials at the Josephine Ford Cancer Institute. EPSILON IMAGING, INC. Automation Alley invested in Ann Arbor-based Epsilon Imaging, Inc. (www.epsilon-imaging.com), a provider of cardiovascular imaging software solutions for the medical industry. Software developed by Epsilon, called EchoInsight, provides visualization and analysis with strain imaging designed specifically for the clinical environment. The company plans to use the funding to increase its sales and expand its staff.

INVESTMENT UPDATE Since 2004, Automation Alley has invested more than $8.5 million in 38 high-tech startup companies.

CRITICAL SIGNAL TECHNOLOGIES, INC. The team at Critical Signal Technologies, Inc. (www. cstltl.com) — an independent provider of personal emergency response systems and telehealth solutions — grew to 140 employees, and the company moved its global headquarters from Farmington Hills to a new 22,000-square-foot facility in Novi, doubling the size of its former location. REVEAL DESIGN AUTOMATION Reveal Design Automation (www.reveal-da.com) develops commercialization verification software technologies for digital circuits. The Ann Arbor-based company received funding from the Israel-U.S. Binational Industrial Research and Development Foundation and the National Science Foundation for continued technology development. ARE YOU A HUMAN Detroit-based Are You a Human (www.areyouahuman. com) provides a game-based verification service called PlayThru, a fun alternative to CAPTCHAs that also functions as a part of an advertising campaign. The startup counted Ford Motor Co. among its customers this year, creating a PlayThru for the Ford Fiesta ad campaign. BEET ANALYTICS TECHNOLOGY Beet Analytics Technology (www.beetllc.com) provides a cutting-edge diagnostics and analytics solution for the automation and manufacturing markets. In 2013, Beet reached a significant commercialization milestone, demonstrating the predictive capability of its analytic tools for a framing station at an auto body assembly plant.

21 In 2013, Automation Alley added two new companies to its investment portfolio, which now includes 38 companies from across Southeast Michigan.

TANGENT MEDICAL Ann Arbor-based Tangent Medical (www.tangentmedical. com) develops intravenous (IV) catheters and related products for IV therapy. The company’s NovaCath Integrated IV Catheter System was awarded Gold Status at the Golden Bridge Awards in the Healthcare Products & Services Innovation Category.

EISEM ENTREPRENEUR’S FORUM The Entrepreneurial Initiative for Southeast Michigan (EISEM) Entrepreneur’s Forum allows local entrepreneurs from emerging tech startups to practice their company pitches in front of a panel of investors. The panel provides constructive feedback and helps the presenters further develop their messages. Participating companies: • Are You a Human, Detroit • Avegant Corporation, Ann Arbor • Portal Architects, Ann Arbor • SurClean, Wixom Participating investors: • Terry Cross, angel investor and early-stage advisor, Windward Associates, LLC • Antonio Lück, director of business acceleration, Michigan Economic Development Corporation • Rajesh Kothari, managing director, Cascade Partners LLC

ADAMS ENTREPRENEUR FELLOWSHIP In its second year as host organization for the Adams Entrepreneur Fellowship, Automation Alley matched four recent college graduates with four up-and-coming local startups: Integrated Systems Management, Inc.; ENT Biotech Solutions, LLC; Stik.com; and TOGGLED. Fellows are selected through a competitive application process and receive an annual stipend, placement in a startup enterprise, ongoing mentoring and coaching and opportunities to participate in entrepreneurial development workshops. The program is supported by the Ann and Carmen Adams Fund of the Community Foundation.

SPONSORED EVENTS As a vibrant community of tech entrepreneurs begins to emerge in Southeast Michigan, so do unique and informative events to help support and grow the community. In 2013, Automation Alley did its part to support this community through strategic event sponsorships, including: • Accelerate Michigan Innovation Competition • Annual Collaboration for Entrepreneurship • Techonomy • BrandCamp • Entre-SLAM (the Global-SLAM edition)

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TECHNOLOGY INDUSTRY REPORT Automation Alley’s vision is that Southeast Michigan will be recognized around the world as the leading technology and innovation region in the United States.

“Results from your survey of tech activity are really helpful to us as we strive to attract students from further afield.” Bruce J. Annett, Jr., Executive Director, Marketing and Public Affairs, Lawrence Technological University

Our Annual Technology Industry Report is a tool both for measuring our progress as a technology hub — in terms of job creation, business creation, innovation and education — and for spreading the news of our success. Compiled each year by the Anderson Economic Group using the most current data available, the report benchmarks Southeast Michigan against 14 other major technology hubs across the nation. Despite the recent economic downturn, the report shows that the Greater Detroit region is still one of the leading tech hubs in the nation — and it’s only improving. In fact, while many tech hubs experienced decline or stagnation in the areas measured in the report, metro Detroit experienced growth in nearly every metric.

SAVE THE DATE: MARCH 27, 2014 2013 was a banner year for tech business growth in Southeast Michigan. To celebrate that fact, we’re unveiling this year’s report at a new Technology Industry Outlook Luncheon on March 27 at the Detroit Marriot Troy. Visit automationalley.com for additional information.

HOW YOU CAN USE THE REPORT STRATEGIC PLANNING The Technology Industry Report identifies highgrowth sectors of Southeast Michigan’s technology industry. BUSINESS ATTRACTION The Technology Industry Report explores key indicators of innovation in the region — patent activity and STEM education — demonstrating the quality and skill of the region’s technology workforce. TALENT ATTRACTION The Technology Industry Report provides concrete evidence that the technology economy of Southeast Michigan is indeed growing, both in terms of technology businesses created and technology jobs created.

STRAIGHT FROM THE SOURCE

X-OLOGY MAGAZINE Automation Alley exists to serve companies on the cutting edge of the technology industry. X-OLOGY, Automation Alley’s quarterly magazine, helps readers stay informed of the latest tech industry tools and trends. In 2013, the magazine focused on trends in four sectors: cybersecurity, energy, information technology and medical devices. In addition, each issue looks at tech-related trends in the areas of health, education and design.

Winter 2013

Spring 2013

“Cisco estimates that 99.4 percent of physical objects in the world are still unconnected. With only about 10 billion of the 1.5 trillion things currently connected globally, there is a vast potential to connect the unconnected via the ‘Internet of Everything.’ We estimate that this connection has the potential to create $14.4 trillion of value for companies and industries between now and the year 2022.” Alison Gleeson, senior VP for U.S. Commercial Sales at Cisco Systems, from “Trends in IT”

“Design is becoming increasingly important in the marketplace … When customers look at two products that have the same functionality, the one that commands the higher price is almost always due to the fact that a designer touched it. Companies that understand the value of design will reap the rewards through higher revenue.” Keith Nagara, director of the transportation design program at Lawrence Technology University, in “LTU’s fresh design talent”

“Cooperative education programs are key to revitalizing the economy. Constant contact between employers and the university guarantees a steady supply of students are being educated with the best, most up-todate input from the fields they will work in.” Venetia Petteway, director of cooperative education at Kettering University, from “A Different Perspective on Acquiring Talent”

“Cybersecurity is something we’re all grappling with. It’s such a dynamic and complex threat that no CIO can go to his or her management and say, ‘I have this under control.’ Cross-industry collaboration is critical to face this threat, since no one company can face this threat alone.” Mamatha Chamarthi, vice president and CIO, CMS Energy and Consumers Energy, featured in “People Profile”

Summer 2013

Fall 2013

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Automation Alley Executive Director Ken Rogers (fourth from the right) joins the 2013 Automation Alley Awards Gala winners on stage after the awards presentation.

AUTOMATION ALLEY EVENTS AWARDS GALA “A renaissance is coming in Southeast Michigan and in the state. As someone who’s been part of the business community here for more than 50 years, I can say that there’s an energy and a confidence in this region driven by an economy on the rebound. At Automation Alley, we believe that energy will continue to grow into something great. Thank you for being a part of it.” Ken Rogers, Automation Alley Executive Director

Automation Alley’s Annual Awards Gala is the region’s most prestigious event honoring technology organizations and their leaders. The event celebrates the accomplishments and continued growth of the individuals and companies moving Southeast Michigan’s technology economy forward. The 13th Annual Awards Gala took place at The Henry hotel in Dearborn, with more than 400 guests in attendance. Bill Proctor, former reporter for Detroit ABC affiliate WXYZ, served as master of ceremonies for the evening. Speakers for the evening included: • U.S. Senator Debbie Stabenow • Scott Goemmel, President of the Automation Alley Board of Directors • Doug Smith, Senior Vice President of Strategic Partnerships and Government Affairs at the Michigan Economic Development Corporation • Robert Ficano, Wayne County Executive • L. Brooks Patterson, Oakland County Executive • Ken Rogers, Executive Director of Automation Alley

2013 AWARDS GALA WINNERS • Automation Alley Member of the Year: Rochelle A. Black, Oakland University • Educational Program of the Year: Central Michigan University New Venture Competition • Entrepreneur of the Year: Bill Coughlin, Ford Global Technologies, LLC • Global Trader of the Year: Fluxtrol, Inc. • Technology Company of the Year: Pratt & Miller Engineering

NETWORKING EVENTS Automation Alley’s member-exclusive networking events are known for providing opportunities for Southeast Michigan’s business leaders to connect in meaningful ways. They also allow the host organizations to showcase their facilities, products and services. This year, members connected with potential partners, customers and clients at events like the Summer BBQs, Fall Member Networking and Morning Member Mingle. Host organizations for this year’s networking events included CAM Logic in Oxford, the City of Southfield, Comcast Business Class in Plymouth, CSZ Testing in Sterling Heights, Huntington National Bank in Troy, Lee Industrial Contracting in Pontiac, and Walsh College in Novi.

TOP: U.S. Senator Debbie Stabenow speaks at Automation Alley’s 2013 Awards Gala. LEFT: The Awards Gala is Southeast Michigan’s premiere technology business awards event, attended by hundreds of the region’s business elite. TOP RIGHT: Automation Alley members enjoy Spring Member Networking at Lee Industrial Contracting in Pontiac. BOTTOM RIGHT: A professional pumpkin carver shows off his skills at Automation Alley’s Oktoberfest-themed Fall Member Networking Event at Huntington Bank in Troy.

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LEFT: Pratt & Miller Engineering in New Hudson was the host site for “Making Manufacturing a Priority,” an event organized by the Manufacturing Committee. ABOVE: At “Will (Net)work for Food,” organized by Automation Alley’s Business Growth Committee, participants volunteered at Forgotten Harvest in Oak Park and met for a networking afterglow at Local Bar and Kitchen in Ferndale.

COMMITTEES BUSINESS GROWTH

GOVERNMENT AFFAIRS

In 2013, the Business Growth Committee organized several events focusing on getting the most out of social media and understanding website analytics. Experts provided tips and tricks for enhancing personal and business LinkedIn profiles, making the most of website analytics and improving search engine optimization.

The Government Affairs Committee, which is exclusive to Automation Alley’s Foundation Members, welcomed members of the legislature and other key government representatives to join in discussions on important issues facing the Southeast Michigan technology business community. Special guests included: • January: State Representative Brad Jacobsen (R-46) • April: State Representative Frank Foster (R-107) • May: State Representative Mike McCready (R-40) • July: State Representative Gail Haines (R-43) • September: Former Pontiac Emergency Manager Louis Schimmel • November: Senior Automotive Advisor to the State of Michigan and Senior Vice President of the Michigan Economic Development Corporation Automotive Industry Office Nigel Francis

The committee also partnered with local charity Forgotten Harvest for the “Will Network for Food” social networking event. Attendees helped pack food for families in need before heading to Local Kitchen and Bar in Ferndale for networking and refreshments.

EDUCATION AND WORKFORCE The Education and Workforce Committee organized a seven-session series, titled “Hiring and Keeping the Perfect Ideal Employee,” focused on recruiting, managing and retaining a skilled workforce. Participants learned how to write better job descriptions, how to use social media to attract applicants, and how to attract and manage the Millennial generation. The committee partnered with the Manufacturing Committee to develop two events focused on finding ways to bring workforce development organizations, educational institutions and government entities together to address the manufacturing skills gap in Michigan. Participants looked at examples of successful programs from other cities and other countries, including the Kalamazoo-based Advanced Manufacturing Career Consortium and a German model for developing intern and apprenticeship programs.

FINANCE After a successful launch of its Finance Advisory Solutions consulting program in 2012, the Finance Committee spent 2013 tackling important finance-related business issues through a series of lunch-and-learn events open to the local business community. The series featured a briefing on health care reform – a timely issue in 2013 – as well as a dual presentation about business valuation and succession planning that targeted businesses in need of short- and long-term strategies in those areas.

MANUFACTURING The Manufacturing Committee organized two events under the heading “Making Manufacturing a Priority,” focused on bringing industry leaders and experts together to network and on strengthening the region’s manufacturing community. The first was an invitation-only event for local manufacturers, hosted by Seco Tools in Troy. During the breakout sessions, attendees heard from industry experts and learned how local businesses are facing challenges and innovating solutions. The second event, held at Pratt & Miller Engineering in New Hudson, featured a small-scale trade show.

TECHNOLOGY The Technology Committee continued to explore innovative uses for current technologies and the emerging field of green technologies. The committee organized the “Technology on the Move” event, which showed business professionals how to unleash the power of their mobile devices to grow their businesses and highlighted applications that are particularly useful for businesses.

AUTOMATION ALLEY STAFF Ken Rogers Thomas Anderson John Bedz Sharon Blumeno Cheryl Buscemi Maryann Daddow Diane DeForest Karol Friedman Mary Gerlach Alysia Green Shaun Hayes Dominique Holmes Cynthia Hutchison Nicole Kampe Kelly Kozlowski Kim Krutsch Natalya Kaatz Lisa Lasser Claire Leigh-Monstevens Randy McCauley Pam Mullen Noel Nevshehir Eric Niemasz Terry Perkon Genna Piscopo Dan Raubinger Glen Sandberg John Shirk Erin Sommerville Natalia Stasiw Rebecca Thibault Anne Walter L. Brooks Patterson

Executive Director Senior Director Defense and Automotive Consultant Senior Business Development Executive Member Relations Manager Director, Finance Director, Marketing and Events Talent Development Specialist International Business Services Grant Administrator Director, Talent Development Member Relations Specialist Member Relations Associate Director, Member Services Public Affairs Copywriter Director, Public Affairs Administrative Assistant International Business Services Intern International Business Services Supervisor Events Specialist Defense and Manufacturing Consultant Executive Assistant Director, International Business Services Defense and Manufacturing Project Engineer Defense and Manufacturing Database Consultant Member Relations Supervisor Director, Defense and Manufacturing Public Affairs Administrator Accounting and Human Resources Manager Media Relations Specialist Entrepreneurial Services Manager Graphic Designer Defense and Manufacturing Executive Administrator Automation Alley Founder and Oakland County Executive

A U T O M A T I O N A L L E Y . C O M