Automation Alley速 2014
ANNUAL REPORT
AUTOMATIONALLEY.COM
INSIDE THIS REPORT
2
4
Board of Directors
14
Defense and Manufacturing
5
Automation Alley速 Locations
16
International Business Services
6
Foundation Members
18
Entrepreneurship
8
Membership Breakdown
21
Technology Industry Report
9
2013-14 Revenues
22
Committees
10
Economic and Community Impact
24
Events
11
Emerging Technologies
26
X-OLOGY Magazine
12
Talent Development
27
Automation Alley速 Staff
MESSAGE FROM THE EXECUTIVE DIRECTOR AND THE PRESIDENT In 2013, we predicted that 2014 would be a monumental year for Automation Alley®, a year when we would break through barriers and take our business to the next level. As we looked forward to celebrating our 15th anniversary, we anticipated that many of our long-standing projects and plans would come to fruition. In the pages of this report, you’ll see that our prediction was spot on.
Ken Rogers, Executive Director
We focus our efforts to serve and grow the technology businesses of Southeast Michigan in five key areas: entrepreneurship, international business services, talent development, emerging technologies, and defense and manufacturing. In 2014, each area experienced a landmark achievement: ENTREPRENEURSHIP
Launched the 7Cs™ program for advanced manufacturing entrepreneurs (see pg. 18) David Hay, President, Automation Alley® Board of Directors
INTERNATIONAL BUSINESS SERVICES
Surpassed $400 million in export sales for local companies (see pg. 16)
TALENT DEVELOPMENT
Awarded a total of $1 million in technical training funds to local companies (see pg. 12) EMERGING TECHNOLOGIES Opened a Technology Center at Oakland University to provide affordable training to local manufacturers (see pg. 11) DEFENSE AND MANUFACTURING
Signed a three-year contract with the U.S. Army (see pg. 14) We believe these developments — along with the
progress made by our partners in the region — signal a coming shift for the tech business ecosystem in Southeast Michigan. In the years ahead, we anticipate significant growth, particularly for small to medium-sized manufacturers. A business renaissance has arrived in metro Detroit, and we are excited about what the future holds. In addition to marking our 15th anniversary, we reached another critical milestone as an organization: As of January 2015, Automation Alley® is financially independent from Oakland County. Oakland County Executive L. Brooks Patterson founded Automation Alley® in 1999 to grow the technology cluster of Southeast Michigan and to shine a spotlight on the region’s highly skilled tech workforce. Automation Alley® has received financial support from the county since its inception, but Patterson always intended that it would become a self-sustaining organization. We are proud to see Automation Alley® begin this next chapter of its history, and we look forward to continuing our efforts to make Patterson’s vision — that Southeast Michigan would lead the nation in technology and innovation — a reality. Thank you for your continued support as we work together toward this goal. Sincerely, Ken Rogers, Executive Director David Hay, President, Automation Alley® Board of Directors
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BOARD OF DIRECTORS PRESIDENT David Hay, Kelly Services, Inc.
VICE PRESIDENT Donald Ishmael, General Dynamics Land Systems
IMMEDIATE PAST PRESIDENT Scott Goemmel, SMG Capital Group
SECRETARY Christine Estereicher, Chrysler Group LLC
TREASURER Donald Clayton, Clayton & McKervey, P.C.
BOARD MEMBERS Ken Rogers, Automation Alley速 Bryce Kelley, Wayne County Gary LaRoy, Michigan Economy Development Corporation John Almstadt, Oakland County Workforce Development Board John Blanchard, General Motors John Boladian, DTE Energy Kathryn Levine, Blue Cross Blue Shield Kurt Saldana, Quality Metalcraft Matthew Gibb, Oakland County Rick Darter, Rave Computer Robert McMahan, Kettering University Stephen Cassin, Macomb County Government Tracie Tillinger, Detroit Economic Growth Corporation
EX-OFFICIO Brian McGinnity, HIROTEC AMERICA
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AUTOMATIONALLEY.COM
LOCATIONS HEADQUARTERS 2675 Bellingham Drive Troy, MI 48083-2044 Phone: (248) 457-3200 Toll free: (800) 427-5100 Fax: (248) 457-3210 Email: info@automationalley.com
DEFENSE OFFICE 7205 Sterling Ponds Ct. Sterling Heights, MI 48312 Phone: (586) 276-9000 Fax: (586) 276-9020 Automation Alley Director of Member Relations Cynthia Hutchison and Business Development Executive Sharon Blumeno discuss membership options with Joe Sanchez of Peter-Lacke.
DETROIT OFFICE 1570 Woodward Avenue Detroit, MI 48226
AUTOMATION ALLEY速 TECHNOLOGY CENTER AT OAKLAND UNIVERSITY One Golfview Lane Rochester, MI 48309
Automation Alley headquarters located in Troy.
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FOUNDATION MEMBERS Automation Alley速 thanks its Foundation Members for their continuous support in establishing Southeast Michigan as a leading technology and innovation region in the United States.
Trust. Always.
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OAKLAND
Oakland County Workforce Development Board
The Resource Network, Inc.
OAKLAND
Troy Career Center
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MEMBERSHIP BREAKDOWN BY INDUSTRY For information on Automation Alley® member benefits or to become a member, visit automationalley.com, or contact us at 800-427-5100 or info@automationalley.com.
61%
TECHNOLOGY & MANUFACTURING
18% PROFESSIONAL SERVICES
6%
GOVERNMENT
5% EDUCATION
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10% ASSOCIATION/ NONPROFIT
“Altair has proudly supported Automation Alley® as a Foundation Member since 2002. This business relationship has resulted in public-private partnerships with local, state and federal governments as well as cooperation with its membership community to support our business and new ventures. As a global technology company headquartered in Oakland County, Automation Alley’s® programs to attract, cluster and connect technology-based companies benefit our organization and the entire region with a richer technical workforce talent pool and partner ecosystem for longterm growth.” James R. Scapa, Chairman and CEO, Altair
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2013-14 REVENUES (Excluding Seed Funds) 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.
54% GRANTS
6%
CONTRIBUTED SERVICES
10% GOVERNMENT CONTRACTS
21% DUES
5% OTHER
4% EVENTS
“I value the connections Automation Alley® helps Oakland University make with other thought leaders in metro Detroit. We appreciate the opportunity to utilize the press release distribution system, which spotlights our news to more than 5,000 media representatives, like-minded companies and other members of the business community. The work Automation Alley® does reminds me that we are all working together to make Southeast Michigan stronger.” Brian Bierley, Director of Media Relations, Oakland University
“The Automation Alley® team has gone above and beyond to identify networking opportunities and connect us with other member companies who could become clients or partners. It’s often said in business that it’s not what you know, but who you know that counts. Automation Alley® membership highlights how true this is.” Nathan Labenz, Founder and CEO, Stik.com
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ECONOMIC AND COMMUNITY IMPACT DEFENSE AND MANUFACTURING
INTERNATIONAL BUSINESS SERVICES
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392 clients or companies have met with Automation Alley’s® defense consultants.
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Automation Alley® has attracted 12 high-tech companies to the region since 2011.
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31,000 companies are listed in VisCom, Automation Alley’s® industry base visibility and communication tool.
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Automation Alley® has led 162 companies on 23 trade missions. As a result of these mission and other export-related activities, local companies have made more than $428 million in export sales.
ENTREPRENEURSHIP •
Through the Automation Alley® Pre-Seed Fund, Automation Alley® has invested $8.59 million in 38 high-tech local startups, which have attracted $113 million in additional capital, including private equity, foundations, state and federal grants, etc.
TALENT DEVELOPMENT •
36 local companies have been awarded technical training funds through Automation Alley’s® Technical Talent Development Program.
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839 people have received training through TTDP.
Automation Alley® thanks the Michigan Economic Development Corporation for its ongoing support of many Automation Alley® programs and initiatives.
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392 CLIENTS OR COMPANIES HAVE MET WITH AUTOMATION ALLEY’S® DEFENSE CONSULTANTS
839 PEOPLE HAVE RECEIVED TRAINING THROUGH TECHNICAL TALENT DEVELOPMENT PROGRAM
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EMERGING TECHNOLOGIES In February, Automation Alley® opened the Automation Alley® Technology Center. Located inside OU INC — a SmartZone business accelerator on the campus of Oakland University — the center was created to address the need for affordable training and certification of local employees, students and individuals in emerging technologies in fields such as product lifecycle management (PLM) and modeling, simulation and visualization (MSV). Automation Alley® has partnered with Tata Technologies, Altair and Geometric Solutions to offer affordable training in areas such as computer aided design (CAD), computer aided engineering (CAE) computer aided manufacturing
(CAM), digital factory simulation, 3-D scanning and 3D printing, using cutting-edge equipment and software. The center offers training from major vendors of PLM and MSV software, including Siemens PLM, Autodesk, and Dassault Systèmes. Additional Technology Center partners include the Michigan Economic Development Corporation, Oakland University’s School of Engineering and Computer Science, DASI Solutions, FISHER/UNITECH, and Wenzel America. In addition, Automation Alley® received a generous donation of Software from Siemens PLM and a donation for the purchase of several
3D printers for the Technology Center from Tom LaSorda, founder of IncWell, former CEO of Chrysler, and a longtime supporter of Automation Alley®.
DIGITAL MANUFACTURING SEMINARS In November, Automation Alley® began offering weekly seminars at the Technology Center for local manufacturing firms. This “Digital Manufacturing Review” demonstrates the value of implementing digital processes and technologies and helps familiarize participants with the types of training and other services available at the Technology Center.
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TALENT DEVELOPMENT TECHNICAL TALENT DEVELOPMENT PROGRAM CHALLENGE FUND In 2014, Automation Alley® awarded a total of $1 million in technical training to local companies through the second round of its Technical Talent Development Program (TTDP) Challenge Fund, helping to ensure that Southeast Michigan’s information technology workforce is among the most skilled in the nation. To date, 893 people have received training through TTDP. In 2014, 15 percent of participants received a salary increase and 5 percent received a promotion. TTDP is made possible through a $5 million grant from the U.S. Department of Labor, Employment and Training Administration, awarded to Automation Alley® to create jobs and retrain workers
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893
15%
$1M
PEOPLE HAVE RECEIVED TRAINING THROUGH TTDP
OF PARTICIPANTS RECEIVED A SALARY INCREASE
IN TECHNICAL TRAINING AWARDED TO LOCAL COMPANIES IN 2014
within Southeast Michigan’s tech industry. 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 industryrecognized vendor certifications for select IT occupations, such as software developers for applications, database administrators, computer user support specialists, ethical hackers and cybersecurity personnel. Training funds are administered by EdEn, Inc., a local project management firm
specializing in economic and workforce development projects.
CODE RECONNECT Also in February, Automation Alley® launched a new component of the Technical Talent Development Program called Code ReConnect. In partnership with Michigan Works! Agencies of Oakland County, Automation Alley® designed Code ReConnect to provide participants with the skills and credentials needed to land high-level IT jobs and to cover the costs associated with their training. Code ReConnect classes take place at Oakland Community College and are focused
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THE 2014 AUTOMATION ALLEY® TTDP CHALLENGE FUND AWARDEES INCLUDE: ACE Controls (Farmington Hills) AMT (Orion) Baker College (Auburn Hills campus) Beaumont Hospital (Royal Oak) BTR Associates (Bingham Farms) Coil Group (Rochester) Critical Signal Technologies (Farmington Hills) DASI Solutions (Pontiac) Delphi Corporation (Troy) Detroit Labs, LLC (Detroit) Digerati (Detroit) ESG Automotive USA (Troy) Future Help Designs (Pontiac) Automation Alley recognized its first class of Code ReConnect graduates on June 25, 2014 for their successful completion of the technical training program.
GalaxE. Solutions (Detroit) Gonzalez Production Systems (Pontiac) Hirotec America (Auburn Hills)
on computer programming and Web and app development. Participants receive an industryrecognized Microsoft Certified Professional Certification. Upon successful completion of the certification process, participants gain access to employment opportunities with local companies through Kelly Services, Inc.
In June 2014, Automation Alley® recognized members of the first cohort of Code ReConnect for their successful completion of the program. Eight participants were honored at a celebration at Automation Alley® Headquarters in Troy. The second round of Code ReConnect kicked off in October 2014.
Kyyba (Farmington Hills) Lochbridge (Detroit) Logic Solutions (Ann Arbor) Merrill Technologies Group (Sterling Heights) Mobile Comply (Pontiac) MOBIS North America, LLC (Farmington Hills) Monroe Engineering (Auburn Hills) Oakland Community College (Bloomfield Hills) Oakland Schools (Waterford) Pixo Group (Southfield) Plastipak Packaging (Plymouth) R & E Automated (Macomb Twp) Reply, Inc. (Auburn Hills) Research Into Internet Systems [RIIS] (Troy) Saline Lectronics (Saline) Secure24 (Southfield) Softura (Farmington Hills) Stout Systems (Ann Arbor)
Automation Alley’s® Technical Talent Development Program is made possible through a $5 million grant from 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.
Total Solutions (Brighton) ZenaComp (Farmington Hills)
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DEFENSE AND MANUFACTURING WHAT IS A SERA™? A Sustainment Engineering Risk Assessment (SERA™) is a detailed study, developed by Automation Alley®, of all parts that can be repaired or replaced on a defense system. The study includes many data fields on each part, such as maintenance records, inventory, future demand, procurement history and part manufacturer financial performance and health information. Automation Alley® uses this information to create a risk ranking for every repair part, allowing the Army to focus scarce resources on updating the equipment most at risk of being non-mission capable.
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In August, Automation Alley® was awarded a new three-year contract with the U.S. Army. The contract allows the Automation Alley® team to continue its current projects, which include conducting Sustainment Engineering Risk Assessments (SERA™), managing various reverse engineering projects and developing VisCom™. Automation Alley® was awarded four new work directives under the contract. The first directive is to conduct a SERA™ study on the Bradley family of armored personnel carrier vehicles, which began service in 1981. The second directive is to conduct a SERA™ study on 34 Force Projection systems. These systems include petroleum and water storage, bridging, material handling equipment, and special kits, outfits and tools.
392 CLIENTS OR COMPANIES HAVE MET WITH AUTOMATION ALLEY’S® DEFENSE CONSULTANTS
31,000 COMPANIES ARE LISTED IN VISCOM™, AUTOMATION ALLEY’S® INDUSTRY BASE VISIBILITY AND COMMUNICATION TOOL
The third project is to conduct a SERA™ study on the Abrams family of vehicles. The Abrams has been the Army’s main battle tank since it entered U.S. service in 1980, and it remains the top tank choice today for the U.S. Army, U.S. National Guard and the U.S. Marine Corps, according to General Dynamics Land Systems, the tank’s designer. According to the Program Executive
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WHAT IS VISCOM? To assist the Department of Defense in its sustainment efforts, Automation Alley® developed VisCom™, a database and communication tool that lists tens of thousands of past, current and potential manufacturers and suppliers across the U.S. It includes valuable information about each company, such as their financial viability and technical capabilities. If an original manufacturer or supplier is no longer in business or has stopped supplying a particular part or material, VisCom™ allows users to identify viable alternative suppliers. At Automation Alley, engineers are working to ensure that American troops have the parts they need to repair damaged and aging defense equipment.
Office Ground Combat Systems, the Abrams is “designed to close with and destroy armored enemy forces on the battlefield using mobility, firepower and shock effect with the lethality and survivability to defeat advanced threats.” The fourth project is to reverse engineer a component of a fire suppression system for an
armored vehicle launch bridge. The component is no longer available to purchase from the original manufacturer, so Automation Alley® will create a technical data package and prototype of the part. Automation Alley® will contract several local businesses to assist in the completion of this project.
This is necessary for the Army because, in recent years, the U.S. defense industry has shifted its focus away from producing more new weapons, vehicles and other support systems to sustaining existing systems. However, many of the original manufacturers of the various parts that make up these systems are no longer in business or have ceased to supply needed parts. This problem is referred to as diminishing manufacturing sources and material shortages (DMSMS).
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INTERNATIONAL BUSINESS SERVICES TRADE MISSIONS To date, Automation Alley® has led 162 companies on 23 trade missions. Local companies have garnered more than $428 million in export sales as a result of these missions and other Automation Alley® export activities.
MEXICO Automation Alley international business center tenants Peter-Lacke of Germany are looking to set up a location in Southeast Michigan.
In June, Automation Alley® led a trade mission to Mexico — Latin America’s second largest economy — with eight local companies. Participants met with potential partners and clients in the cities of Guanajuato, Puebla and Queretaro, Mexico’s major industrial hubs.
UNITED KINGDOM Nine companies joined Automation Alley® for a trade mission to the
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12 HIGH-TECH COMPANIES ATTRACTED TO THE REGION SINCE 2011
$428M IN EXPORT SALES AS A RESULT OF THESE MISSIONS AND OTHER EXPORT-RELATED ACTIVITIES
United Kingdom. Mission activities centered on the Farnborough International Airshow, the world’s largest aerospace and defense exhibition, with more than 1,500 exhibitors and 100,000 participants from nearly 50 countries around the world.
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Automation Alley’s international business team traveled to Mexico in June of 2014 to help eight companies from Southeast Michigan expand their business operations abroad.
SAUDI ARABIA & THE UAE In December, Automation Alley® led seven companies on a trade mission to Saudi Arabia and the United Arab Emirates, making stops in Riyadh, the capital of Saudi Arabia and its largest city, and Dubai, U.A.E., the business hub of the Middle East.
BUSINESS ATTRACTION In 2014, three tenants of Automation Alley’s® International Business Center — a soft-landing space for
international companies exploring opportunities to do business in Southeast Michigan — set up permanent operations in the region. Bluewrist Inc. of Canada and Alten of France opened offices in Troy, while FOOKE GmbH of Germany opened an office in Pontiac. Current International Business Center tenants include Peter-Lacke GmbH of Germany and Bmax of France. To date, Automation Alley® has attracted a total of 12 high-tech businesses to the region.
“The Automation Alley® team did a first-class job on the whole event. I benefited on a business level greatly from the trip, and from a personal level, thoroughly enjoyed myself and made many new friends from the team. I would whole-heartedly recommend any future trips to companies considering such an event.” - Paul Lester, director of business development for Bmax and U.K. trade mission participant
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ENTREPRENEURSHIP In December, Automation Alley® launched the 7Cs™ program, a new entrepreneurship initiative aimed at advanced manufacturing entrepreneurs across Southeast Michigan seeking accelerated commercialization for their product, service or technology. Automation Alley’s® team of experts guides entrepreneurs through a customized seven-step process that starts with conception and leads to commercialization. The program includes intense coaching and a commitment from Automation Alley® to invest resources and capital. Automation Alley® makes a $25,000 directed investment in each company accepted into the program, which is used to cover the costs of the program. Companies accepted into the program are required to repay the $25,000 at the end of two years, thus making the funding available for investment in additional companies. There is also an opportunity for each of the accepted companies to receive up to an additional $100,000 in investment from the Automation Alley® Pre-Seed Fund after they complete the program. In 2014, three companies participated in the Automation Alley® 7Cs™ pilot program: IMX Cosmetics, which has
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developed technology to create custom cosmetics; Lighthouse Molding, a technology leader in low-pressure overmolding; and Civionics, which develops wireless sensors for the advanced manufacturing industry.
PROGRAM HIGHLIGHTS THE 7CS™ FIRST LOOK
One of the major challenges faced by entrepreneurs and startups is securing that very first customer. That’s why Automation Alley® created First Look, a collection of twominute sales videos promoting each of the Automation Alley® 7Cs™ clients and showcasing their products and services. The videos give potential customers a “first look” at the innovative products and services offered by these technology startup clients. THE 7CS™ FIRST MATCH
Through the 7Cs™ First Match, Automation Alley® partnered with more than 20 local chief innovation officers at major automotive and manufacturing suppliers to present technologies developed by 7Cs™ participants, giving the suppliers access to innovations that could take their businesses to the next level and giving entrepreneurs exposure and access to potential business opportunities.
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“Being a participant in the 7Cs™ program and working closely with Tom Kelly and his extraordinary team has been our best strategy toward success to date. With their guidance and expertise, IMX has acquired a written commitment for a pilot program to launch our newest technology in 2015 with a global beauty giant. The 7Cs™ experts supported our efforts in ensuring that our agreement would lead to success with strategic goals, attainable metrics and a future commitment with the success of the pilot. The 7Cs™ resources have truly been invaluable!” - Julie R. Bartholomew, M.D., IMX Cosmetics, Founder and CEO
INVESTMENT UPDATE Since 2004, Automation Alley has invested $8.59 million in 38 technology-driven startup companies across Southeast Michigan. In 2014, several Automation Alley® portfolio companies made great strides in growing their businesses. ®
BEET ANALYTICS
Beet Analytics produces software to monitor the “heartbeat” of manufacturing production lines to predict where potential problems are most likely to occur and help users “find the hidden factory.” The company sold its system to multiple major international manufacturers in 2014. REVEAL DESIGN AUTOMATION
develops products for detecting subtle and costly quality issues in semiconductor chips prior to commercial production and release. The company successfully met their goal to exceed a quarter million in sales in 2014. FUSION COOLANT
Fusion Coolant uses super-critical CO2 in place of traditionally oil-water based coolants to extend the life of tooling and decrease production times. The company welcomed a new CEO, Brad Darr, in 2014. They also began test pilots with Stryker Medical and GE Aviation and are in the process of integrating their technology with metal-cutting machinery original equipment manufacturers.
THE 7Cs™ STEP-BY-STEP
01
COMMUNITY
02
CONCEPT
03
CONTEXT
04
CLARITY
05
CUSTOMERS
06
CAPITAL
07
COMMERCIALIZATION
Reveal Design Automation
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Fund of the Community Foundation with the purpose of developing entrepreneurial skills in young people and encouraging economic development of Southeast Michigan. THIS YEAR’S FELLOWS INCLUDE:
Automation Alley Director of Entrepreneurship Tom Kelly presents Susan Sprentall of SurClean, Inc. with the $12,500 Automation Alley Advanced Manufacturing Innovation Award at the 2014 GLEQ/MiQuest Business Plan Awards.
ADAMS ENTREPRENEUR FELLOWSHIP As host organization for the Adams Entrepreneur Fellowship, Automation Alley® provides opportunities for college and university graduates to work with growing early-stage companies in Southeast Michigan. Fellows are involved in the day-to-day activities of running a startup and are mentored by company leadership and the program’s coordinators. In addition to an annual stipend, the program provides fellows with opportunities to network with other young leaders in the region. The Adams Entrepreneur Fellowship was created through the support of the Ann and Carmen Adams
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•
Erich Heise, OcuSciences, Ann Arbor
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Adham Aljahmi, HistoSonics, Ann Arbor
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Cory Connolly, Levin Energy Partners, Southfield
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Kathleen Hadley, Global Business Professor, Troy
INNOVATION AWARD FOR ADVANCED MANUFACTURING In June, Automation Alley® awarded the $12,500 Innovation Award for Advanced Manufacturing to SurClean, Inc. of Wixom at the Great Lakes Entrepreneur’s Quest Business Plan Competition. Each year at the competition, presented by Lansing-based nonprofit MiQuest, Midwest startup companies come together to make a pitch for equity capital from investors. In addition to the Automation Alley® prize, SurClean won $15,000 as runner-up for the Emerging Company of the Year award.
SurClean develops handheld laser coating removal products for industries such as automotive, aerospace, bridge and railway. The technology replaces traditional chemical-based methods of coating removal. The system uses a laser beam to disintegrate coatings such as paint and rust and removes them in a cost-effective, safe, energy efficient and earth-friendly way.
ACCELERATE MICHIGAN INNOVATION COMPETITION In 2014, several Automation Alley® clients were recognized at the Accelerate Michigan Innovation Competition, an international business competition designed to connect later-stage entrepreneurial companies with investors from around the world. Cribspot received the $100,000 prize for first runner-up, and three companies received $25,000 prizes: SurClean, Inc. client in the product and service category, BEET Analytics in the manufacturing category and Inventev in the advanced transportation category.
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2013 TECHNOLOGY INDUSTRY REPORT Automation Alley’s® annual Technology Industry Report benchmarks the metro Detroit region against 14 other recognized technology hubs in the United States. It ranks each region in areas such as the number of technology businesses and jobs, the number of patents issued — a measure of innovation — and the number of college and university graduates in the fields of science, technology, engineering and math, or STEM. Compiled by East Lansing-based Anderson Economic Group, the report also provides an in-depth analysis of leading sub-sectors within metro Detroit’s technology economy, such as advanced automotive, life sciences and technology management. Since the Great Recession, the technology industry of Southeast Michigan has experienced significant annual growth, contributing to economic recovery around the
15%
state. 2014 was no exception. While many tech hubs across the nation experienced decline or stagnation, metro Detroit experienced growth in nearly every metric measured.
INCREASE IN TECHNOLOGY INDUSTRY EMPLOYMENT IN 2014
30,000
KEY FINDINGS FROM LAST YEAR’S REPORT INCLUDE •
•
Metro Detroit added more than 30,000 tech jobs, while Silicon Valley lost 10,000.
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Schools in the metro Detroit region graduated more students in the areas of engineering and engineering technologies than any other region in the study, with more STEM graduates and computer science graduates than Silicon Valley.
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TECHNOLOGY JOBS ADDED TO THE METRO DETROIT REGION
Tech industry employment in metro Detroit was up 15 percent from the previous year’s study, while Silicon Valley showed a 4 percent drop.
Michigan leads the nation in the advanced automotive industry,
with a concentration of advanced automotive employment in metro Detroit that is 6 times the national average and a concentration in Grand Rapids that is 3.5 times the national average. •
Nearly 10 percent of total employment in the metro Detroit area is tech-related.
To download this year’s full report, visit automationalley.com.
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COMMITTEES BUSINESS GROWTH In February 2014, the Business Growth Committee kicked off the year by lending a helping hand. They partnered with Gleaners Community Food Bank to host “Will (Net)work for Food,” a networking event where participants helped fold bags for the Gleaners Stamp Out Hunger program. The bags are distributed by the National Association of Letter Carriers for residents to fill with food donations. In April, the committee organized “From Connections to Contracts: Creating Opportunity through Networking Mastery. Attendees learned to develop their personal network. The committee’s “Cold Call/Prospecting Workshop” took place in June. Guest speaker Matt Stephens of Gerry Weinberg & Associates discussed how to make cold calls more effective and less intimidating, how to leave voicemails that result in returned phone calls and how to get more quality appointments.
EDUCATION AND WORKFORCE In an effort to address current talent development needs in Southeast Michigan, Automation Alley’s® Education and Workforce Committee organized a series of seminars in 22
2014 titled “Michigan’s Got Talent.” The four-part series explored how companies could benefit from implementing internship programs for candidates of all ages and skill sets, offering competitive wages to current and future employees, and tweaking or creating a positive corporate culture. The final event in the series covered how all of these strategies work when applied in the real world.
FINANCE Automation Alley’s® Finance Committee mixed a little business with baseball at a networking event that paid homage to one of Detroit’s greatest pastimes. The “Homeruns & Handshakes” event gave attendees the chance to meet entrepreneurs with exciting ventures along with local entrepreneurial service providers. After the event, attendees headed to Comerica Park to take in a Tigers game. Also in 2014, the Finance Committee launched a new meeting format that features guest speakers highlighting interesting topics for finance professionals. The first speaker was Jeff Smith of Woodworth Financial. He gave the group an insider look at a documentary project he’s working on, titled “Enterprising Detroit,” which focuses on entrepreneurship in Detroit.
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GOVERNMENT AFFAIRS In 2014, the Government Affairs Committee welcomed Macomb County Executive Mark Hackel, Oakland County Executive L. Brooks Patterson and Michigan State Senator John Pappageorge for “Trending Topics with Local Leaders,” an event series that provides Automation Alley® members with an opportunity for personal interaction with local legislative leaders and political figures.
MANUFACTURING In June 2014, Automation Alley® partnered with SME to bring THE BIG M Manufacturing Convergence to Detroit. The event was created to bring key players in the manufacturing industry together to discuss the future of the industry. With the help of the Manufacturing Committee, Automation Alley® showcased the innovations of three local manufacturing companies at the “MSV Innovation Factory” and organized a panel discussion titled “Modeling, Simulation and Visualization (MSV): Revolutionizing what industry can see, do and create.” In its inaugural year, THE BIG M attracted more than 6,000 attendees and more than 230
Oakland County Executive L. Brooks Patterson, founder of Automation Alley, meets with attendees after his presentation at Automation Alley’s “Trending Topics with Local Leaders” event, organized by the Government Affairs Committee.
exhibitors to the Cobo Center. Also in 2014, about 150 Automation Alley® manufacturing and engineering services members gathered at Johnson Controls, Inc. (JCI) in Plymouth for “Making Manufacturing a Priority,” a supplier matchmaking and exhibition event organized by the Manufacturing Committee. The event included networking, and guests heard from senior JCI staff in purchasing, engineering, operations and manufacturing regarding how to form business partnerships with JCI.
TECHNOLOGY
Enterprise Strategy,” an event designed for business and technical leaders that focused on technical topics including application development, cloud computing, mobile security and mobile device management. In October 2014, the committee welcomed speakers from Microsoft, Dell and AT&T for a lunch ‘n’ learn event titled “Mobile Computing for the Enterprise.” The event focused on software and hardware case studies and included technology demonstrations highlighting how new mobile devices have empowered the workforce to do more.
In February 2014, the Technology Committee hosted “IT Executive Briefing: Creating a Mobile
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EVENTS TECHNOLOGY INDUSTRY OUTLOOK LUNCHEON In March 2014, Automation Alley® hosted its annual Technology Industry Outlook event at the Detroit Marriott in Troy. The event marked the debut of the 2013 Automation Alley® Technology Industry Report and featured expert analysis on the report’s key findings. More than 300 attendees gathered to hear presentations from Dr. Michael Grieves, noted product lifecycle management expert, author and educator; Patrick Anderson, principal and CEO of Anderson Economic Group; and Automation Alley® Executive Director Ken Rogers.
#HACKDPL In July, Automation Alley® challenged local developers and designers to create a working mobile application for the Detroit Public Library in just 24 hours. #hackDPL participants worked through the night at Grand Circus in Detroit for the chance to win a $5,000 grand prize. David Kircos and Hunter Rosenblume, both interns at Detroit Venture Partners, created the winning app, which provides library users with alerts and notifications about Detroit Public Library events, programs, closings and other important dates. It also allows users to search the library’s catalog and order e-books.
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A $5,000 grand prize was awarded to two interns from Detroit Venture Partners, who built the winning app for the Detroit Public Library at Automation Alley’s first annual hackathon.
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AWARDS GALA More than 400 of the region’s technology industry leaders attended Automation Alley® 14th Annual Awards Gala at MotorCity Casino Hotel. The September event honored outstanding organizations and individuals in five categories: •
Automation Alley® Member Company of the Year: Comau
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Educational Program of the Year: Michigan Advanced Technician Training Program (MAT2)
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Entrepreneur of the Year: David Wang and Ronny Chiang (BEET Analytics Technology, LLC)
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Global Trader of the Year: Firstronic LLC
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Technology Company of the Year: Detroit Labs
A special video presentation featuring significant figures from Automation Alley’s® history commemorated the organization’s 15th anniversary. And Automation Alley® Executive Director Ken Rogers announced that the auditorium at Automation Alley® headquarters will be renamed the “L. Brooks Patterson Auditorium” in honor of the Oakland County executive, who founded Automation Alley® in 1999, and presented Patterson with a plaque that will hang in the building.
At Automation Alley’s 14th Annual Awards Gala, in addition to the awards ceremony, guests enjoyed a cocktail reception and an afterglow with live entertainment at Motor City Casino in Detroit.
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X-OLOGY MAGAZINE X-OLOGY is Automation Alley’s® quarterly magazine, highlighting technology industry trends, forward-thinking educational programs, and the unique companies and individuals that make up Southeast Michigan’s technology economy. Themes for the 2014 issues included mobile technologies, clean energy, transportation technologies and the health care industry. Each issue also explored Michigan’s unique cultural and recreational offerings, including the best museums and attractions to visit in winter, memorable golf excursions, the boating and water sports industry and activities found off the beaten path in Ann Arbor.
Winter 2014
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Spring 2014
Summer 2014
Fall 2014
AUTOMATIONALLEY.COM
AUTOMATION ALLEY速 STAFF Ken Rogers, Executive Director Kelly Kozlowski, Senior Director
EMERGING TECHNOLOGIES
MEMBERSHIP
Alex Violassi, Director, Automation Alley速 Technology Center Angelina Tomovski, Automation Alley速 Technology Center Administrative Assistant
Cynthia Hutchison, Director, Member Relations Sharon Blumeno, Business Development Executive Shaun Hayes, Member Relations Supervisor Jacqueline Martin, Member Relations Specialist
ENTREPRENEURSHIP Tom Kelly, Director, Entrepreneurship Dom Holmes, Entrepreneurial Administrator Ted Williams, Technology Investment Analyst
PUBLIC AFFAIRS Erin Sommerville, Media Relations Specialist Nicole Kampe, Public Affairs Copywriter Christian McDavid, Public Affairs Administrative Assistant
DEFENSE AND MANUFACTURING Daniel Raubinger, Director, Defense and Manufacturing Eric Niemasz, Defense and Manufacturing Project Engineer John Bedz, Defense and Automotive Consultant Terry Perkon, Defense and Manufacturing Database Consultant Anne Walter, Defense and Manufacturing Executive Administrator
INTERNATIONAL BUSINESS SERVICES Noel Nevshehir, Director, International Business Services Lisa Lasser, International Business Services Manager Eriola Fishman, International Business Services Supervisor
TALENT DEVELOPMENT Karol Friedman, Director, Talent Development
MARKETING AND EVENTS Diane DeForest, Director, Marketing and Events Claire Leigh-Monstevens, Events Specialist Rebecca Thibault, Graphic Designer
FINANCE Maryann Daddow, Director, Finance John Shirk, Accounting and Human Resources
MANAGER SUPPORT STAFF Pam Mullen, Executive Assistant Kim Krutsch, Administrative Assistant Founder: Oakland County Executive L. Brooks Patterson
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2675 Bellingham Drive Troy, MI 48083-2044 Phone: 248.457.3200 Toll free: 800.427.5100 Fax: 248.457.3210 info@automationalley.com