FOXCONN IN WISCONSIN: HOW CAN YOUR COMPANY MAKE THE MOST OF THE OPPORTUNITY?
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1 FOXCONN IN WISCONSIN: HOW CAN YOUR COMPANY MAKE THE MOST OF THE OPPORTUNITY? WILLIAM MARTIN, DIRECTOR STRATEGIC WORKFORCE DEVELOPMENT INITIATIVES JANUARY 10, 2019
2 PROJECT OVERVIEW & FOXCONN BACKGROUND
3 Foxconn Development Video
4 WISCONSIN WINS Wisconsin competed with at least six other states for Foxconn s $10 billion investment and 13,000 good-paying, family-supporting jobs. Illinois Indiana Michigan North Carolina Ohio Pennsylvania Wisconsin
5 WHY WISCONSIN? Strong manufacturing legacy A top state to do business with Ability to develop skilled workers University of Wisconsin System Wisconsin Technical College System Other educational institutions Can do attitude Geographic location
6 WHY WE WANTED THE OPPORTUNITY Wisconsin s Projected Outlook Based on current trends, 46,000 positions will go unfilled between now and 2022 due to an aging workforce Between 2008 and 2012 Wisconsin exported an average of 14,000 college graduates per year We wanted to reverse this trend by creating a new industry for Wisconsin and state-of-the-art technology with R&D opportunity and supply chain impact throughout the State. Source: Governor s Council on Workforce Investment
7 RETURN ON INVESTMENT $3 BILLION IN STATE INCENTIVES OVER 15 YEARS $51 BILLION IN RETURNS OVER 15 YEARS 13,000 jobs $10 billion in capital investment 16,000+ direct and indirect construction jobs $4.26 billion in supply chain expenditures THE BOTTOM LINE $18 of economic impact for every $1 spent by the state $3.4 billion annually in state gross domestic product from Foxconn Increase Wisconsin s current GDP by 1%
8 FOXCONN BACKGROUND INFORMATION Fourth-largest technology company in the world Total annual revenue of $135 billion; net income of $4.5 billion in 2016 Ranked No. 24 on the 2018 Fortune magazine Global 500 Specializes in design, manufacturing and assembly of computer and high-tech consumer electronics products Facilities in Asia, Brazil, Europe and Mexico; Wisconsin facility will be its first significant investment in the U.S.
9 WHAT WILL FOXCONN PRODUCE IN WISCONSIN?
10 ABOUT THE PROJECT Largest economic development project in Wisconsin history Foxconn will employ 13,000 individuals by 2022 (avg. salary: $53,000, plus benefits) Tens of thousands of direct and indirect construction jobs over 4-6 years Phase 1 of Area 1 $10 billion investment 18:1 return on investment
11 ALL ENVIRONMENTAL REQUIREMENTS HAVE BEEN MET Air Permitting Storm Water Control Wastewater Regulation Great Lakes Water Use Regulation Waterway Regulations Hazardous Waste Wetland Regulation/Mitigation Foxconn mitigated at 2:1, higher than required under current law
12 PHASE 1, AREA 1 MASTER PLAN
13 Excavation Images Photo courtesy of Curtis Waltz / aerialscapes.com
14 A WISCONSIN FIRST APPROACH BUSINESS AND WORKFORCE INCLUSION GOALS Inclusion Goals for Business Contracting and Workforce Diversity are Identical for Private and Public Infrastructure Construction
15 FOXCONN IN WISCONSIN CONTRACTORS AND SUBCONTRACTORS
16 PUBLIC INFRASTRUCTURE WORKFORCE PARTICIPATION
17 BIGGEST IMPACT TO COME: SUPPLY CHAIN / EMPLOYMENT
18 BMW IN SOUTH CAROLINA: STATEWIDE IMPACT In 1993, BMW invested $600 million in manufacturing in Spartanburg County, South Carolina to create 2,000 jobs Today, BMW s investment has grown to > $8 billion, > 10,000 direct jobs 4x employment multiplier in South Carolina Each job at BMW plant creates 3 jobs elsewhere Job growth in real estate, retail, professional and technological services, healthcare Outpaced textiles to become state s leading manufacturing sector
19 BMW IN SOUTH CAROLINA: STATEWIDE IMPACT Attracted clusters of automotive companies that trade with one another within South Carolina Extends across the state with 36 of 46 counties now home to at least one automotive-related manufacturer Helped attract other nonautomotive manufacturers, like Boeing
20 SUPPLY CHAIN UPDATE Foxconn intends to spend $1.4 billion in annual supplier purchases from Wisconsin Companies In 2015, Oshkosh Corporation made nearly $300 million in purchases from more than 700 companies in 140 communities throughout Wisconsin.
21 FOXCONN IS USING SUPPLY CHAIN MARKETPLACE Supply Chain Marketplace: Online supply chain directory that enables companies to connect with suppliers and buyers Free, easy-to-use tool to create profiles, post RFPs, signup for newsletter & alerts Search by key industry directories and service categories Supplier Readiness Program Identifies and qualifies potential suppliers, leveraging Supply Chain Marketplace Scorecard evaluation based on several criteria, including: Core Capabilities Certifications: ISO-9001 & ISO/TS (being replaced by IATF-16949) Customer and Quality Scores Digital Readiness/I4+.0 Plan Immediate categories being evaluated: Plastic Injection Molding, Metal Stamping, Automation/System Integration
22 WISCONSIN S FOXCONN BONUS NORTH AMERICAN CORPORATE HEADQUARTERS Foxconn purchased Northwestern Mutual building in downtown Milwaukee Will serve as the company s North American Corporate Headquarters and be home to the Wisconn Valley Innovation Center Purchase is independent of any state investment incentives
23 WISCONSIN S FOXCONN BONUS INNOVATION CENTERS Foxconn has announced its acquisition of properties in Green Bay, Eau Claire and Racine to establish multiple new Foxconn Innovation Centers. Collaborative effort to foster and attract talent and to spur innovation throughout northern Wisconsin Creating at least 150 high-tech jobs at the new facilities in each region The Racine facility will also be a model for "smart city" pilot programs that reflect the transformational technologies created by Foxconn
24 WISCONSIN S FOXCONN BONUS UW-Milwaukee International Engineering Co-Op Program An opportunity for UWM engineering students to study in Taiwan and work at a Foxconn facility Smart Cities Smart Futures Competition $1 million to students, faculty and staff at Wisconsin s universities, colleges and technical schools to develop smart proposals to improve and enhance Wisconsin s way of life Foxconn-Advocate Aurora Health Comprehensive Health Collaboration Technology innovations and integration to drive health care of the future and improve outcomes while lowering costs for individuals and employers UW-Madison Partnership $100 million gift to engineering and innovation research at the UW-Madison, creation of the Foxconn Institute for Research in Science and Technology (FIRST) Wisconn Valley Venture Capital Fund $100 million venture fund created by Aurora Advocate Health, Foxconn, Johnson Controls, and Northwestern Mutual to drive innovation in Wisconsin Wisconsin Ginseng Foxconn plans to partner with Wisconsin organizations to promote ginseng
25 WEDC CONTRACT EMPLOYMENT PROVISIONS Jobs Tax Credit Requirements Minimum FTE Jobs to Receive Any Credits FTE Jobs Target to Receive Full Credits
26 FOXCONN IS HIRING! Job opportunities are now available! Go to Career Center - Search active job postings, apply for a specific job Talent Community - An online gathering place for individuals interested in Foxconn to interact with recruiters Four Talent Communities based on geography: Milwaukee Racine Green Bay Eau Claire
27 PRE-BID MEETINGS EQUAL BUSINESS OPPORTUNITY Attending pre-bid meetings is important to: Connect with key project decision-makers Meet potential primes and subcontractors Form new relationships that can help maximize Wisconsin First participation Access new suppliers Eighty percent of success is showing up. Woody Allen
28 WISCONN VALLEY SMALL BUSINESS CAPACITY BUILDING Access to Capital Contractors Loan Guarantee $10,000,000 available to guarantee 50% of loan or $750,000 Local Revolving Loan Funds Revolving line of credit to be used for working capital on approved development projects Certifications to Advance Small, Disadvantaged Businesses Minority-owned Veteran-owned Women-owned Access to quality workers Find JobCenterofWisconsin.com Finance Training Wisconsin Fast Forward Grants Benefits Work Opportunity Tax Credits
29 WISCONN VALLEY WORKFORCE TRAINING CENTER & TALENT PIPELINE Contractor Engagement Candidate Coordination Training Coordination New Hire Support Business Services Pre-Bid Information Post-Award Support Customized Recruitment Pre-Screening for Employers Partnering with Local & Regional Public Workforce Development Partners Pre- Apprenticeship Specialized Training in conjunction with Gilbane, etc. New Hire Follow-Up Retention Support Tax Credits Wage Subsidies
30 GET INVOLVED WISCONN VALLEY NEWS M+W GILBANE PUBLIC INFRASTRUCTURE SUPPLY CHAIN MARKETPLACE Information regarding project status, road updates, next steps, interesting facts and bid opportunity alerts delivered to your inbox! Receive notifications for construction opportunities and progress highlights. Get notifications when public infrastructure bids are advertised. Plug into the online supply chain directory that enables companies to connect with suppliers and buyers and post RFPs. newsletter Pages/public_construction_inf o_signup.aspx ketplace.com
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