2007 Annual Report Where technology builds opportunity

Transcription

1 2007 Annual Report Where technology builds opportunity AUT080C7AnnualReport.indd 1 1/15/08 12:04:06 PM

2 Table of Contents Message from the Executive Director...1 Membership...2 Annual Technology Industry Report...3 Regionalism...4 Government Affairs Update...5 Annual Awards Gala...7 X-OLOGY: The Study of Everything...8 Workforce Development: Our Future...9 Entrepreneurialism and Business Growth...11 International Business Initiatives...14 Delivering Value...17 Committee Accomplishments Board of Directors...22 Executive Roundtable...23 Automation Alley Staff...24 Foundation Members...25 AUT080C7AnnualReport.indd 2 1/15/08 12:04:06 PM

3 Ken Rogers Executive Director Message from the Executive Director As we close out our eighth year of operation, I m proud to say that Automation Alley is now the largest technology association in the Great Lakes region. Since our inception in 1999, Automation Alley has continued to further economic growth and connect businesses, education and government. With our regional partners from the eight counties in Southeast Michigan and the City of Detroit, we are pleased to say that Automation Alley now has more than 850 members. In 2007, we welcomed our 700th member, Synergy Plus Solutions in Livonia, and our 800th member, Global Strategic Connections, LLC in Troy. The growth Automation Alley experienced last year was an impressive accomplishment and a tribute to the region, the promise of our knowledge-based economy, and a validation of the services and benefits we provide to our members. Also in 2007, Automation Alley conducted two trade missions and signed three Memorandums of Understanding. In May, Automation Alley visited Germany, the Czech Republic, Hungary and Slovakia and in October, we traveled to India and visited New Delhi, Pune, Bangalore and Chennai. Each of the missions allowed for meetings with prospective agents, partners and distributors, all while sightseeing and experiencing the culture. Automation Alley was also busy assisting technology entrepreneurs. We funded nine start-up technology companies this past year, for a total of $1.4 million. That money is going to help local companies expand and thrive in today s changing marketplace. We re looking forward to many more accomplishments in For each year that passes, we find ourselves creating more opportunities for Southeast Michigan. With the help of you, our members and partners, we ll be able to continue the tremendous growth we ve experienced and continue providing valuable benefits and services. We thank you for the ongoing support you provide, and look forward to another year as Automation Alley drives the growth of Southeast Michigan s economy. Sincerely, Ken Rogers, Executive Director 1 AUT080C7AnnualReport.indd 1 1/15/08 12:04:07 PM

4 Membership This past year proved to be another one of great growth for Automation Alley. With 850 members from across Southeast Michigan, Automation Alley s membership increased nearly 19 percent from In 2007, tier 5 companies, those with less than 10 employees, were once again the top membership category. With 322 members, tier 5 companies comprise 38 percent of Automation Alley s total membership. Other leading membership categories were association and non-profit, tier 4 and supporting. The largest industry sector was again information technology. With more than 240 members in the IT field, this sector made up 28 percent of Automation Alley s overall membership. Other leading industries included manufacturing and business services. Membership in Automation Alley continues to diversify across the region. Macomb County witnessed an incredible leap in membership in 2007 with an increase of 62 percent. Membership in Washtenaw County increased as well, by 32 percent, followed by Wayne County at 11 percent. 17.0% 3.0% 1.0% 6.0% Supporting 147 (17%) Private Equity 2 (0.5%) 0.5% 0.5% 2.0% 7.0% 10.0% Media 3 (0.5%) Government 20 (2%) Foundation 58 (7%) Education 43 (5%) Association & Non-Profit 83 (10%) 5.0% Tier (38%) Tier 4 85 (10%) 10.0% 38.0% Tier 3 49 (6%) Tier 2 12 (1%) Based on 850 members Tier 1 26 (3%) Tier Membership Distribution Your Opinion Matters! In 2007, Automation Alley conducted a variety of surveys designed to help guide the programs and services offered to the membership, as well as thoughts on regional economic issues. Over the past year, members gave their input on: Information assurance for the Southeast Michigan Information Security Regional Skills Alliance Wellness programs and initiatives in their organization Quality of living in Oakland County State of elearning in Southeast Michigan Marketing initiatives in their organization Automation Alley periodically surveys its members because we value the opinions of those we re serving. In order for Automation Alley to determine what our members want and need from us, it s imperative that we receive the thoughts and views of our members. 2 AUT080C7AnnualReport.indd 2 1/15/08 12:04:08 PM

5 Annual Technology Industry Report Once again, Automation Alley completed its highly anticipated Annual Technology Industry Report. The report provides a comprehensive analysis of the technology industry in Automation Alley, and examines the size of the technology industry in terms of employment, establishments and payroll. Also included are important areas of the technology industry, which signal the direction that the industry may take in coming years, including R&D spending and patent awards. Highlights of this year s report include: In 2005, the region was home to 312,412 technology workers, and the payroll for these workers totaled more than $21.5 billion. Universities in Southeast Michigan enrolled the majority of the science and engineering graduate students in the state, with 11,859 students, representing 77 percent of the total science and engineering graduate students enrollment in the state. Universities in Automation Alley have spent more than $1 billion on research and development each year from The Small Business Innovation Research (SBIR) program has provided millions of dollars of funding to Southeast Michigan businesses for research and development projects. From 2000 to 2005, area small businesses received 521 SBIR awards worth $150.7 million. Military establishments and universities with defense and homeland security research and development efforts continue to play a significant role in Automation Alley s technology industry. 3% 18% 10% 21% Advanced Automotive Advanced Manufacturing 10% 38% Chemical and Material Information Technology Life Sciences Other Technologies Employment by Technology Cluster in Automation Alley, % All Other Industries Technology Industry The report notes that while the region is struggling through an economic decline, there is already a viable technology industry at home in Southeast Michigan, one that includes Fortune 500 companies, successful new ventures and mid-sized companies with global reach. Also significant is that the technology industry continues to provide jobs with wages that are well above average and increasing at above average rates. 76.9% Technology Industry s Share of Total Payroll in Automation Alley, AUT080C7AnnualReport.indd 3 1/15/08 12:04:10 PM

6 Regionalism Strategic partnerships are the key foundation on which Automation Alley s technology-based economy is being built. With a commitment to building and strengthening relationships, Automation Alley works with key leaders from Genesee, Livingston, Macomb, Monroe, Oakland, St. Clair, Washtenaw and Wayne counties and the City of Detroit to harness shared resources of the region and further economic growth. This past year, Automation Alley, in an effort to increase its reach throughout the region, opened service offices in Genesee and Macomb counties to support the burgeoning technology industry in those communities. The new Genesee office is located in the Genesee Regional Chamber of Commerce building in Flint, and the Macomb office is located in the Macomb County Administration building in Mt. Clemens. The offices are staffed by an Automation Alley team member one day per week. Clients have access to vital Automation Alley services and contacts, including commercialization and international business assistance. Automation Alley s Technology-Based Economic Developers (TBED) Roundtable is a vehicle where municipalities and government officials can join together to discuss the region s business community. Meeting on a quarterly basis, TBED works to create and maintain a vibrant economic environment in which the region s business community can succeed in today s challenging, competitive market. Each of the Alley s regional partners is vital to the region s efforts in cultivating job creation and entrepreneurialism: City of Detroit Economic Development Alliance of Livingston County Economic Development Alliance of St. Clair County Genesee County Government Macomb County Government Monroe County Industrial Development Corporation Oakland County Government Wayne County Government Genesee County St. Clair County Regional Partners: Livingston County Oakland County Macomb County Washtenaw County Wayne County City of Detroit Monroe County Monroe County Industrial Development Corporation 4 AUT080C7AnnualReport.indd 4 1/15/08 12:04:11 PM

7 Government Affairs Update A Voice for All Last year, Ken Rogers, executive director of Automation Alley, provided expert testimony on two separate occasions. In March, he spoke before the Economic Development Subcommittee of the Committee on Appropriations in Lansing and discussed the Small Business Innovation Research (SBIR) program and how it can further enhance Michigan s investment in the 21st Century Jobs Fund. In April, Rogers provided testimony at the Monthly Policy Meeting of the U.S. Senate Democratic Steering Outreach Committee in Washington, D.C. He was invited to speak by U.S. Senators Debbie Stabenow and Harry Reid, and discussed the importance of green technologies in the automotive industry and the technological strength Michigan companies offer. In addition, Rogers was honored by Michigan Governor Jennifer Granholm and the Michigan Economic Development Corporation for his work in diversifying the state s economy. Titled Michigan Diversification Celebration s Outstanding Diversification Achievement Award, Rogers was cited for his ongoing efforts to grow Automation Alley and his work in creating the organization s technology and international business services. Joining Together for Change Automation Alley joined Ann Arbor SPARK, Detroit Economic Growth Corporation, Detroit Regional Chamber, Detroit Regional Economic Partnership, Detroit Renaissance, Macomb County, Oakland County, NextEnergy, TechTown, Tourism Economic Development Council and Wayne County in 2007 to form the Economic Development Coalition of Southeast Michigan (EDCSEM). This coalition is not a new organization, but a joint effort that supports the work of its partners while at the same time focuses on projects that benefit the entire region and have the opportunity to bring greater results than through individual efforts. The coalition is focusing its collaboration on: Expanding the capacity for entrepreneurialism and innovation in the region Identifying priorities and jointly seeking federal and state resources to advance economic development in Southeast Michigan Partnering on policy initiatives that support economic growth in the region In February, the coalition traveled to Washington, D.C. to meet with members of Southeast Michigan s Congressional delegation to present a plan to increase the number of new and expanding businesses in the region. The plan, The Regional Innovation Network, included a $50 million funding request from federal, state, local and private sources over the next several years. It focuses on building capacity in the region s existing business accelerators and creating two new accelerators in Macomb and Western Wayne counties. In addition, Automation Alley is proud to support Detroit Renaissance s Road to Renaissance project. Detroit Renaissance is leading the region-wide collaborative effort by launching strategies and taking actions to transform our region s economy. The initiative benchmarked six peer domestic and international 5 AUT080C7AnnualReport.indd 5 1/15/08 12:04:12 PM

8 regions, gathered input from more than 650 local leaders from 500 different organizations, analyzed the region s business and workforce strengths and is led by a 30-member steering committee. The Road to Renaissance plan has six priorities for the region, including: Becoming the global center for mobility Developing an aerotropolis (airport city) Growing greater Detroit s creative community Expanding the region s entrepreneurial capacity Securing the future talent base Promoting globally; communicating locally Ken Rogers, Automation Alley s executive director, is the co-chair of the Expand the Region s Entrepreneurial Capacity team, while other Automation Alley staff participate on a variety of subcommittees. Government Affairs Committee To build awareness of and support for Automation Alley at the local, state and federal levels, the Government Affairs Committee, comprised of Foundation Members, works to connect Automation Alley members with the legislative community. In 2007, the Committee passed three resolutions, including support for: Lawrence Technological University s 2007 Solar Decathlon student project Oakland County Economic Development Group Incentives Subcommittee s final recommendations to the Michigan Economic Development Association Incentives Taskforce H.R. 2927, which responsibly balances achievable fuel economy increases with important economic and social concerns including consumer demand Also in 2007, the Government Affairs Committee sponsored the Michigan Society of Association Executives (MSAE) Legislative Conference on January 3. Focused on Michigan s economic future and the state legislature s upcoming plans, the conference is the first major legislative conference of the year and attracted more than 300 association chief executive officers, staff members, volunteer leaders, lobbyists and media. By joining Automation Alley in 2004, I have seen how Automation Alley works within the community and offers expertise in areas such as environmental issues, educational developments, international growth and technology breakthroughs. In addition, their marketing and networking opportunities are very powerful tools in our business growth. I have established strong relationships within the Alley itself and with key players of businesses that are growing and going global. Beverly Cornell, Director of Marketing and Sales Iterotext Translation Services 6 AUT080C7AnnualReport.indd 6 1/15/08 12:04:13 PM

9 Annual Awards Gala Held at the Rock Financial Showplace in Novi on September 14, this year s Annual Awards Gala attracted 600 of the region s best and brightest technology leaders. The ceremony honored Southeast Michigan s most influential technology leaders and organizations and included a cocktail reception, dinner and afterglow reception with a live band, cigar lounge and martini bar Gala Award Winners Legend CEO Charles Chip McClure President and CEO, ArvinMeritor, Inc. CEO of the Year George W. Jackson, Jr. Detroit Economic Growth Corporation Emerging Leader Richard Sheridan CEO, Menlo Innovations, LLC Automation Alley Member of the Year David Darbyshire Engineer and Owner, DASI Solutions, LLC Technology Company of the Year Plexus Systems, Inc. Emerging Technology Company of the Year RazorThreat Educational Program of the Year Hustle & TECHknow Preparatory High School Non-Profit of the Year Michigan Manufacturing Technology Center 7 AUT080C7AnnualReport.indd 7 1/15/08 12:04:16 PM

10 X-OLOGY: The Study of Everything In January, Automation Alley, in collaboration with Renaissance Media, launched its newest communication venture, X-OLOGY magazine. X-OLOGY magazine provides a unique hybrid of technology information and high-end lifestyle content for an educated, visionary audience. The quarterly publication takes an in-depth look at the people, companies, technologies and ideas that are transforming Southeast Michigan. The engaging format balances thought-provoking articles and striking photography that resonate with its tech-savvy readers. With a circulation in excess of 20,000, X-OLOGY is delivered to individual subscribers, businesses and technical decision-makers in the Automation Alley region. Additionally, X-OLOGY magazine serves as a recruitment tool for Southeast Michigan through distribution to technical schools, high schools, universities and continuing education facilities. Issues in 2007 examined life sciences, alternative energy, nanotechnology, and creating and implementing green technologies. Additional information can be found at Our companies joined Automation Alley in July of I have never experienced such a dynamic group of individuals dedicated to helping move and shape Michigan s economy. Automation Alley is an excellent place to network, learn and become part of a group of diversified, successful and potentially successful entrepreneurs. Bobbi Socall, VP Business Operations Business Success Group, LLC 8 AUT080C7AnnualReport.indd 8 1/15/08 12:04:17 PM

11 Workforce Development: Our Future Southeast Michigan Information Security Regional Skills Alliance In an effort to examine information security and how it affects the everyday business person, Automation Alley s Southeast Michigan Information Security Regional Skills Alliance (MiRSA) is a partnership between government, business and educational institutions to assess and solve workforce problems in an innovative way. Established in 2005 with a grant from the Department of Labor and Economic Growth, the MiRSA is partnering with prominent information security members to ensure the information security industry has a trained and skilled workforce in Southeast Michigan. Early in the year, the MiRSA conducted a survey of Southeast Michigan businesses. It found better education and certification programs must be developed to help companies strengthen their information security practices and ensure that sensitive information is secure. Conducted by Intellitrends Market Research, the survey concluded that Southeast Michigan businesses recognize the importance of information security with a majority responding that it is a high priority and one-third anticipating a strong increase in focus. The survey responses indicate companies are changing from a reactive to proactive response to information security. The MiRSA also held events relating to the Tank-Automotive and Armaments Life Cycle Command (TACOM) mission and the role information assurance plays in supporting that, as well as several identity theft seminars presented by A.G. Edwards. Global Trade Mission Automation Alley s Global Trade Mission (GTM) is an innovative, hands-on learning experience preparing Southeast Michigan high school students to participate in the global economy by simulating an international trade mission. In partnership with Oakland Schools and Oakland Community College, approximately 200 high school students from Macomb and Oakland counties worked in cross-district, cross-county teams to create a product and global business plan that were presented to a panel of business experts in March. Over the course of the two-day program, students: Learned skills for global citizenship Developed business solutions to trade challenges using the tools and information of the global marketplace Worked hand-in-hand with business and trade experts Explored emerging careers in Southeast Michigan Cultivated team dynamics skills to work effectively across diverse backgrounds Took on corporate roles to guide their work strategy and business presentation 9 AUT080C7AnnualReport.indd 9 1/15/08 12:04:18 PM

12 Advanced Manufacturing Training Center In partnership with Dassault Systèmes DELMIA Corp., Oakland Schools and the U.S. Department of Labor Employment & Training Administration, Automation Alley is providing necessary training in one of the President s high-wage, high-growth areas: advanced manufacturing. Sponsored by Congressman Joe Knollenberg, the Advanced Manufacturing Training Center (AMTC) trains and places incumbent and displaced workers and at-risk students in high-tech, higher paying positions, builds foundations in math and science, and enhances technical skills through a career ladder approach. Small- and medium-sized companies will benefit by training workers specifically designed for their needs, and large manufacturers will benefit from an improved supplier base. With a grant from the U.S. Department of Labor, Automation Alley is providing program oversight, outreach and placement access to its member companies, which include start-up technology organizations and large advanced automotive corporations. The program focuses on two major academic areas: calculus-based mathematics and science, and applied mathematics and science. The training is being conducted at Oakland Schools Southeast Campus. Marketing materials, including a short introductory video and brochures, are available at Michigan Works! offices in the region. More information can be found at GLIMA to ConnecTech GLIMA, Automation Alley s network for technology professionals, underwent a radical change this year. Now known as ConnecTech, the organization is Michigan s premier network for technology professionals, providing the resources and opportunities needed for success. ConnecTech, with eight statewide chapters, now receives stronger financial and organizational support from Automation Alley. A Web-based component allows members across the state to share best practices, discuss technology trends and pose questions to the statewide membership. ConnecTech also partners with several associations and groups to help technology professionals across Michigan succeed in their careers, and invites high-level speakers to discuss useful and practical technology trends and business practices. The new organization will better address the needs identified by its members and focus on offering additional opportunities such as professional development, technology training, connections with members around the state, the ability to post podcasts online and access to a new mentoring program. I am proud to support an initiative [the Advanced Manufacturing Training Center] that provides the opportunity of growth to Michigan businesses. Working together, these partners have the ability to help businesses be successful in the global market. Congressman Joe Knollenberg 10 AUT080C7AnnualReport.indd 10 1/15/08 12:04:19 PM

13 Entrepreneurialism and Business Growth By bringing together businesses, educators and government, Automation Alley is helping entrepreneurs accelerate the commercialization of new technologies and services. To date, Automation Alley has interacted with more than 290 technology businesses that have received services such as mentoring, seed funding and business plan development assistance. Start-Up Businesses In 2003, Automation Alley began offering technology companies limited seed funding. In the past four years, Automation Alley has provided more than $2.7 million to 18 companies in Southeast Michigan to continue accelerating the commercialization of new products and services. Companies that received seed funding in 2007: BlizzardBoost Livonia Cielo MedSolutions, LLC Ann Arbor Critical Signal Technologies Farmington Hills Danotek Motion Technologies, LLC Ann Arbor Hybra-Drive Systems, LLC Deerfield Monarch Antenna Ann Arbor ParkingCarma, Inc. Flint RazorThreat Royal Oak SecureCom Technologies, LLC Southfield Companies that have received funding in the past include: 3IS, Inc. Novi Altair Engineering Troy Beholztech Flint CheckTheCrib Grosse Pointe ElectroJet Whitmore Lake JADI, Inc. Troy Prezign Livonia Saphran Ann Arbor SpaceForm Detroit EISEM The Entrepreneurial Initiative of Southeast Michigan (EISEM) is a series of programs that work to highlight regional entrepreneurs and their businesses and further develop their message to reach customers and investors. Sponsored by the Oakland County Business Roundtable and Crain s Detroit Business, EISEM offers a bi-monthly program, Entrepreneur s Forum. Three emerging technology companies present a brief overview of their company and business plan and are then critiqued by attendees, including venture capitalists, angel investors and business professionals who provide constructive criticism and guidance. Each forum also includes a keynote presentation of a successful entrepreneur who highlights the ups and downs on the path to success. Presenting companies in 2007 included: Cargo Solutions Group, LLC Sterling Heights Cielo MedSolutions, LLC Ann Arbor CircleBuilder Software Franklin Clearview Software Auburn Hills Clinecta, LLC Sterling Heights Hybra-Drive Systems, LLC Deerfield M-Bots, Inc. Sterling Heights Maria Madeline Project Lathrup Village ProductBase, LLC Birmingham Saleztrack, LLC Birmingham SAM Systems, Inc. Troy TuneVUZ Ann Arbor Keynote speakers included Dick Beedon of MacBeedon Group, Fred Nussbaum of JobApp Network, Rich Sheridan of Menlo Innovations and Rick Warner of ParkingCarma. Michigan Small Business & Development Technology Center Educates Entrepreneurs In 2007, Automation Alley signed a Memorandum of Understanding with the Michigan Small Business & Technology Development Center (MI-SBTDC), which is now providing counseling and mentoring to members of the business community and Automation Alley technology clients in Southeast Michigan. The MI-SBTDC enhances Michigan s economic well-being by providing counseling, training, research and advocacy for new ventures, existing small businesses and innovative technology companies. With offices statewide, the MI-SBTDC positively impacts the economy by strengthening existing companies, 11 AUT080C7AnnualReport.indd 11 1/15/08 12:04:19 PM

14 creating new jobs, retaining existing jobs, and assisting companies in defining their path to success. Tom Kelly, MI-SBTDC s technology business consultant, provides assessments to early-stage companies in the following areas: Business plan assistance Angel/venture capital pitch assistance Intellectual property guidance SBIR/STTR assistance Commercialization planning Management team assistance Strategic alliance building Marketing technology assessment Defense Consulting Automation Alley has formed relationships with Brigadier General Donald Schenk (U.S. Army, Ret.) and Col. Tom Lytle (USMC, Ret.) to consult with member companies interested in working with the U.S. Army. Brigadier General Schenk and Col. Lytle both offer defenserelated consulting, specifically with the U.S. Department of Defense and military prime contractors, to Automation Alley members only. There is no cost for the initial consultation. Brigadier General Schenk was an officer in the U.S. Army for many years with service at Fort Riley, Kansas, and the U.S. Army s TACOM Life Cycle Management Command. His awards and decorations include the Distinguished Service Medal, Legion of Merit (four awards), Soldier s Medal, Bronze Star Medal, Meritorious Service Medal (five awards) and numerous service medals. Col. Lytle has several years of U.S. military experience, having served as a program manager for light armored vehicles at TACOM; an assistant chief of staff at the Marine Corps Base in Okinawa, Japan; the project officer and direct reporting program manager of advanced amphibious assault vehicles; and a political-military analyst at the Joint Chiefs of Staff in Arlington, Virginia. Lytle s education includes degrees from Harvard Business School, National Defense University, Defense Acquisition University and Ferris State University. NDIA-MI Automation Alley signed a Memorandum of Understanding with the National Defense Industrial Association-MI (NDIA-MI) in April to work together to better assist and promote defense-orientated business opportunities and support the state s defense industry from a global market perspective. By collaborating, each is working to diversify Michigan s economy and provide value for both organizations and their members. NDIA is a member-driven organization with 1,375 corporate and 47,000 individual members from both the defense and national industry base. It advocates cutting-edge technology and superior weapons, equipment, training and support; promotes a vigorous, responsive government/industry national security team; and provides a legal and ethical forum for the exchange of information between industry and government on national security issues. The organization also works to keep its members abreast of the latest technology developments and addresses issues, as well as government policies, critical to the health of the defense industry and the preservation of national security. Automation Alley s strength is generated from its membership. Numerous benefits are reaped from combining representatives from corporations, education and government, working toward the goal of promoting Southeast Michigan as a premier business hub. The Alley creates a forum for members to exchange ideas toward that end, allowing active participants to create the environment in which they realize their success. Connie Jaracz, Human Resources Manager Sonitrol Tri-County 12 AUT080C7AnnualReport.indd 12 1/15/08 12:04:19 PM

15 Automation Alley as a Defense Contractor Automation Alley received a contract from the U.S. Army Tank-Automotive Research, Development and Engineering Center (TARDEC) and the National Automotive Center (NAC) to provide an analysis of the Small Business Innovation Research (SBIR) program and to propose a strategy for improving the commercialization of SBIR technologies. The SBIR program is a highly competitive program that encourages small businesses to explore their technological potential and provides the incentive to profit from its commercialization. By including qualified small businesses in the nation s R&D arena, high-tech innovation is stimulated and the United States gains entrepreneurial spirit as it meets its specific research and development needs. Automation Alley is collaborating with TARDEC personnel within the NAC to analyze the SBIR program and develop a strategy for improving the success rate of the SBIR program over a 12-month time period. Automation Alley will develop and maintain a TARDEC-accessible database for documenting historical data, analyses, trending and forecasting; convene an advisory council of automotive industry experts; and offer a final report with relevant information relating to ground vehicle project interaction with the R&D community in Michigan. USAutoPARTs Automation Alley is working with the Original Equipment Suppliers Association and the Oak Ridge National Laboratory in Tennessee, one of the premier national Department of Energy (DOE) laboratories, to use part of a former Delphi facility in Shelby Township as an Automotive Research and Development Center. A mission of the center will be pre-competitive, collaborative research and development amongst automotive suppliers with the DOE. The effort, known as USAutoPARTs, presents an opportunity for Southeast Michigan to redeploy a major research facility. The name USAutoPARTs embodies the goal of the project: improving the competitiveness of Michigan s advanced automotive companies. This will be accomplished in two ways: through pre-competitive and collaborative research in partnership with federal laboratories, and through assisting TARDEC in finding resolution to its high-level diminishing parts cases that require reverse engineering and first article testing. Automation Alley enables our organization to connect with fellow Southeastern Michigan businesses and develop relationships and partnerships. The relationships that we have made through the Alley have proven to be invaluable in terms of referrals and sales. We encourage all Southeast Michigan-based organizations to explore all that Automation Alley has to offer. Ted Annis, Marketing Director Greenview Data, Inc. 13 AUT080C7AnnualReport.indd 13 1/15/08 12:04:20 PM

16 International Business Initiatives Automation Alley enhances the global competitiveness of smallto medium-sized businesses conducting business overseas while marketing and promoting Southeast Michigan as a great place to invest. Going Global with Southeast Michigan In 2007, Automation Alley conducted trade missions to both Central Europe and India. Using the U.S. Department of Commerce s Gold Key Services, which provide pre-screened and pre-qualified meetings based on each individual company s goals and objectives, trade mission participants met with prospective agents and distributors to secure contracts and discuss future partnerships. While in Central Europe, the delegation of Southeast Michigan companies and economic developers visited Germany, the Czech Republic, Hungary and Slovakia. Targeted industries included automotive components, industrial machinery and quality control systems, environmental technology, medical instruments and hospital equipment, and information technology and software applications. In addition to the Gold Key meetings, participants attended welcome receptions at the residences of the U.S. ambassadors to the Czech Republic and the Slovak Republic, as well as at the residence of Patricia Gonzalez of the U.S. Embassy of Hungary. While in India, Automation Alley took participants to New Delhi, Pune, Bangalore and Chennai. Targeted industries included automotive components and systems, alternative energy applications, environmental and pollution control technologies, machine tools, medical devices and equipment, IT and manufacturing software applications. Participants attended Gold Key meetings, as well as a reception hosted by Carmine D Aloisio, minister-counselor for commercial affairs at the United States Embassy, breakfast briefings with top Indian officials, and a tour of Infosys and Wipro Technologies. To date, Automation Alley trade missions have garnered more than $126 million in contracts for Southeast Michigan companies. Agreements to Better Our Region Automation Alley negotiated numerous Memorandums of Understanding (MOUs) with economic development organizations in the European Union and Asia (China and India) in These agreements are designed to promote mutually beneficial trade, investment and technological exchange opportunities between Automation Alley and the rest of the world. The MOUs also serve to enhance the global competitiveness of our region, particularly for local companies interested in jointly researching and developing innovative products and technologies with potential partners overseas. In addition to strengthening the commercial and economic ties between U.S. and international business, government and academic entities, the signatories to the MOUs also agree to provide the following services to each other s members exploring trade and investment opportunities in the other party s region: Complimentary office space and administrative support Business partner matchmaking Market-entry consulting Meaningful introductions to business and government officials 14 AUT080C7AnnualReport.indd 14 1/15/08 12:04:21 PM

17 While in Central Europe, Automation Alley signed an MOU with the Slovak Investment and Trade Development Agency, and in India, an MOU was signed with the Indo-American Chamber of Commerce. Automation Alley also signed an agreement with the Next Generation Design and Manufacturing Framework Research Group in Japan. Attracting Business Is Our Business A critical element to Automation Alley s international business model is attracting companies to Southeast Michigan. In 2007, Automation Alley assisted two companies in locating to the region: Prostep, Inc., a supply chain management software firm located in Troy and SeQent, a design and engineering software firm, also located in Troy. Each of these companies received relocation assistance from Automation Alley, including: Assistance in scheduling meetings with government officials, attorneys and CPAs Arrangement for company and/or site visits Opportunities for regional economic developers to make presentations to visiting foreign companies and governments Access to Automation Alley computers, IT support and telephones Access to workstation and meeting rooms Video and telephone conferencing to facilitate meetings with Michigan companies Discounted transportation and lodging opportunities Joining Together Internationally In 2007, Automation Alley hosted a variety of events aimed at educating the business community about conducting business overseas and networking. In February, more than 100 members joined at Automation Alley to discuss conducting business in India. The informal networking event allowed attendees to meet with Indian-owned manufacturers and service providers and learn about the opportunities and challenges of conducting business both here and in India. For those interested in Central Europe, Automation Alley held a conference in March to focus on the opportunities and challenges of doing business in Germany, the Czech Republic, Slovakia and Hungary, particularly where the demand for Michigan-made products and services is strong. Attendees networked and discovered why former Eastern Bloc countries are the latest to capitalize on globalization, especially with their recent ascension into the European Union and World Trade Organization. Automation Alley also hosted an event for companies interested in conducting business in India in August. Highlighting opportunities and challenges, the event also offered a sectorial analysis of India s leading industries. Keynote speakers included the Honorable Banashri Bose Harrison, Minister of Commerce, Embassy of India in Washington, D.C. and international business experts from the Automotive Component Manufacturing Association of India (ACMA); Bodman, LLP; Miller Canfield; Plante & Moran, PLLC; Tata; U.S. Department of Commerce and the U.S. Embassy in New Delhi. 15 AUT080C7AnnualReport.indd 15 1/15/08 12:04:22 PM

18 Reverse Trade: Helping Companies Connect This past year Automation Alley hosted two foreign delegations: Slovakia and Israel. With the goal of connecting Southeast Michigan businesses with foreign companies, Automation Alley s visiting delegations met with local organizations interested in conducting business with both Slovakian and Israeli companies. Similar to a trade mission, Southeast Michigan companies met with prospective agents interested in conducting business here in the United States. Potential relationships were formed, with the promise of new business in Advising Internationally The International Business Services Advisory Council assists in coordinating Automation Alley trade missions overseas and developing conferences that identify promising new markets for Michigan-made products, services and technologies in demand around the world. The Council is led by dedicated business and economic development executives (representing Southeast Michigan s eight-county region) truly committed to the future success of our state. Wayne County Airport Authority s participation in Automation Alley s trade mission to China in November 2006 contributed in part to the success of China Southern Airlines recently announcing daily nonstop service between Detroit and Beijing beginning in The regional economic impact of this announcement is $95.6 million annually. Jack Vogel, Senior Vice President Business Development and Revenue Management Wayne County Airport Authority 16 AUT080C7AnnualReport.indd 16 1/15/08 12:04:23 PM

19 Delivering Value Automation Alley strives to offer its members quality benefits and services. We provide access to a variety of resources designed to meet members business needs, including: Web Site Tools Event Postings Promote your events on our online calendar and view other member events. Member Discount Program Offer fellow Automation Alley members a discount on your product or service, or take advantage of discounts offered by other members. Press Release System Distribute your technology-related press releases through our press release service, which reaches more than 1,750 journalists, companies and members of the business community. Recruitment Assistance Recruit skilled employees through Automation Alley s online resume database and job posting system. RFP System Our online RFP system enables you to post your requests for proposals on the Web site, view RFPs posted by other companies and subscribe to an service that sends a notice whenever an RFP is posted that matches your interests. Networking and Educational Seminars Automation Alley Events, Mixers & Seminars Networking events and social mixers throughout the year help members build business networks. Educational seminars present businessboosting information. Quarterly Member-Only Networking Events Averaging more than 300 in attendance, Automation Alley s networking events allow members to join together and form potential alliances and partnerships. Member Orientation Offers new and existing members an opportunity to learn more about Automation Alley benefits and services, including a Web site tutorial and committee overview. Toolboxes Finance Toolbox Provides the tools to assist in the quest for financing. Educational resources are provided for different stages of funding. Created by the Technology Business Committee. Human Resources Toolbox Provides the tools to assist in the development of benchmark employee recruitment and retention services for member companies. The toolbox was designed for small businesses with limited human resources capabilities. Created by the Human Resources Committee. 17 AUT080C7AnnualReport.indd 17 1/15/08 12:04:23 PM

20 Marketing Toolbox Provides the tools to help businesses gain new customers, grow market share and increase sales. The toolbox includes customizable templates of marketing tools ranging from case studies and press releases to marketing plans and nondisclosure agreements. Created by the Technology Business Committee. Defense Assistance National Automotive Center Service Office A National Automotive Center (NAC) satellite office, located at Automation Alley s Headquarters, provides Automation Alley members with military applications access to funding for high-tech R&D as well as to the NAC supercomputer and research labs. CRADA Automation Alley s Cooperative Research and Development Agreement (CRADA) with the National Automotive Center allows companies to receive the benefits of an expedited agreement process and a resource acquirement that help companies accomplish their technology goals. Member Directory and Meeting Space Member Directory Your business is listed in Automation Alley s online Member Directory, featuring a hyperlink to your Web site. Meeting Space Automation Alley s Headquarters, the center of member activity, features a 2,000-square-foot atrium and two conference rooms for events, presentations or client meetings. Last year, more than 5,000 individuals attended meetings and seminars at Automation Alley. I have been involved with Automation Alley since During that time, I have been lucky enough to see Automation Alley grow into a powerhouse in the technology sector in Southeast Michigan. Automation Alley has done a tremendous job in driving growth in our technology community and plays an important role in showing how important our region is in the world of technology. For organizations that rely on technology innovation and support, there is no other organization that provides as much value and benefit as Automation Alley. Adam Wilburn, Practice Manager NuSoft Solutions, Inc. 18 AUT080C7AnnualReport.indd 18 1/15/08 12:04:23 PM

21 Committee Accomplishments Members who seek an active role within Automation Alley have the opportunity to participate in one of four member-driven committees. The committees are the best way to become involved in Automation Alley activities and to network with fellow members. Human Resources Committee The Human Resources Committee provides a full spectrum of human resources support to members by offering the best tools, opportunities and resources available to enhance human capital through educational seminars, networking, an online HR Toolbox and the electronic recruitment system Accomplishments Added additional information to the Human Resources Toolbox Assisted with Automation Alley s golf outing Hosted a wellness conference that featured sessions on emotional wellness and behavioral claims management; Beaumont Hospitals myoptimal Health Program: Promoting Health, Rewarding Action; and 10 things any company can do to support the health of their employees Hosted HR and Benefits: Discovering the Hidden Profit Center, an event that taught attendees how to turn human resources and benefits into a profit center Hosted Becoming an Employer of Choice, an event that featured several local human resource experts who addressed the benefits of becoming an employer of choice and the different avenues employers can take to retain their employees Membership Services Committee The Membership Services Committee strives to empower Automation Alley members to realize the full value of their membership. Initiatives include new member networking events, member orientations and events that highlight specific Automation Alley benefits Accomplishments Hosted an Alley Awareness Workshop on event planning and marketing Coordinated and hosted four successful member orientations Hosted 10 Member Integration events, allowing new members within the past 12 months to come together to learn more about Automation Alley and to network 19 AUT080C7AnnualReport.indd 19 1/15/08 12:04:24 PM

22 Technology Business Committee The Technology Business Committee strives to maintain Automation Alley s position as a high-tech leader and create an environment that fosters collaboration between high-tech businesses. Committee members explore alternative financing options, create marketing tools designed to help small businesses, and spearhead various business development programs Accomplishments Successfully completed the Business-to-Business Lead Generation Series Launched Phase II of the Marketing Toolbox, which includes case studies showing the results of successful marketing/ PR plans Completed the Interactive Marketing Series on podcasting with OneUpWeb and effective communications with Microsoft Held a joint event with the Entrepreneur s Initiative of Southeast Michigan titled Emerging New Market Strategies: Googling Your Way to Bigger Business Continued with the Emerging Technology Breakfast Series; held two events, ediscovery and From Shop Floor to Top Floor Launched the Business Lifecycle Finance Series, aimed at entrepreneurs and finance executives within small and emerging companies who are seeking additional capital to grow their businesses Successfully launched the Business-to-Business Sales Series, an event aimed at teaching participants how to increase their sales Workforce Development Committee The Workforce Development Committee creates, attracts and retains an educated and skilled knowledge-based workforce to provide an environment in Southeast Michigan that supports innovation, entrepreneurship and economic growth. Committee activities include professional development seminars, educational workshops and programs, and initiatives that connect education, government and industry Accomplishments Successfully launched the STEM Education Subcommittee to create a rich portfolio (toolbox) of science, technology, engineering and math educational programs designed to strengthen and grow Southeast Michigan s future knowledgebased workforce by providing a resource of best practices for educators, business/industry and government representatives Co-hosted the Global Trade Mission with Oakland Schools and Oakland Community College Hosted Diversifying in a Flat World: A Manufacturing Symposium with the City of Sterling Heights, Macomb County Planning and Economic Development Department, and the Sterling Heights, Utica, Shelby Chamber of Commerce Deployed a survey on the state of elearning in Southeast Michigan and later shared with results at a workshop to implement elearning issues and technology concerns 20 AUT080C7AnnualReport.indd 20 1/15/08 12:04:25 PM

23 Committee Leadership Automation Alley would like to thank each of its committee chairs, vice-chairs and subcommittee chairs for their continuous hard work and dedication to Automation Alley. All committee members play a vital role in the development of Automation Alley and its programs, and because of their strong support, Automation Alley has been able to provide quality programs and services designed to maximize the value of membership. Government Affairs Committee Chair Rochelle Black, Oakland University Staff Liaison Charles DeVries, Automation Alley Human Resources Committee Chair Kris Powell, BenePro, Inc. Vice-Chair Cathy Shallal, Oakland County Subcommittees Attraction & Retention Faris Alami, Integration Systems Co-Chairs Management, Inc. David Robinson, Teoma Systems HR Toolbox Chair Cathy Shallal, Oakland County Wellness Chair Connie Jaracz, Sonitrol Tri-County Staff Liaison Dawn Smith, Oakland County Membership Services Committee Chair Lynn Ingberg, Advanced Communication Technologies Co-Chair Tim Finerty, Clayton & McKervey, P.C. Subcommittees Member Integration Chair John Zinn, Summit Funding Group Peer Network Co-Chairs Richard King, Michigan Small Business & Technology Development Center Pat Salo, Michigan Small Business & Technology Development Center Social Media Chair Kathy Ossian, Miller Canfield Staff Liaison Robyn Ritzema, Automation Alley Technology Business Committee Chair Jenn Cornell Subcommittees Business Development Chair Dave Biskner, Synergy Plus Solutions Finance Co-Chairs Jim Recker, TIP Capital Mike Semanco, Hennessey Capital Marketing Chair Beverly Cornell, Iterotext Translation Services Staff Liaison Katie Stout, Automation Alley Workforce Development Committee Chair David Darbyshire, DASI Solutions, LLC Co-Chair Jennifer Boyce, Central Michigan University Subcommittees Career Awareness & Mary Kaye Aukee, Oakland Schools Preparation Chair Career Awareness & Dana Cadman, Cadman Preparation Vice-Chair Communication Corporation elearning Co-Chairs Greg Adams, ilearn Systems Dennis Cavitt, CPS Polytechnic OpportunityNetworks.net- Gary Farina, Oakland Schools Portal Chair STEM (Science, Technology, Casandra Ulbrich, Wayne State Engineering, Math) University & Member, State of Education Chair Michigan Board of Education Digital Manufacturing Dr. Bill Williams, Oakland Schools Network Advisory Chair Digital Manufacturing Roy Smolky, Dassault Systèmes Network Advisory Vice-Chair DELMIA Corp. Professions in Transition Chair Faris Alami, Integration Systems Management Southeast Michigan Jennifer Bowden, Automation Alley Information Security Regional Skills Alliance (RSA) Manager Staff Liaison Alysia Green, Automation Alley 21 AUT080C7AnnualReport.indd 21 1/15/08 12:04:25 PM

24 2007 Board of Directors Automation Alley would like to thank and recognize its board members who have devoted time and energy to the success of Automation Alley. Without their invaluable contributions, Automation Alley would not be the success it is today. Interim President Vice President Secretary Treasurer Assistant Treasurer Jerry Rush, ArvinMeritor, Inc. Brian McGinnity, HIROTEC AMERICA Brian Kundinger, Kundinger Controls Scott Goemmel, PMV Technologies, LLC Brian Balow, Dickinson Wright PLLC Stephen Cassin Macomb County Government Claudia Killeen General Motors Corporation Ed Donovan Genesee Regional Chamber of Commerce Dennis Duncanson Detroit Economic Growth Corporation Greg Guidice RazorThreat Dennis Herrick Beaumont Hospitals Frederick Hoffman Chrysler LLC Lou Longo Plante & Moran Turkia Mullin Wayne County Bob Nichols Kettering University Dennis Toffolo Oakland County Government Adam Wilburn NuSoft Solutions 22 AUT080C7AnnualReport.indd 22 1/15/08 12:04:26 PM

25 Executive Roundtable Automation Alley would like to thank and recognize its Executive Roundtable representatives and staff for their contributions and dedication to Automation Alley. Gracemary Allen G3 Business Solutions Joseph Amine Moore Stephens Doeren Mayhew David Balos Chase Commercial Banking Brian Balow Dickinson Wright PLLC Dr. Rose Bellanca St. Clair County Community College Stephanie Bergeron Walsh College Dr. Mulugetta Birru Wayne County Richard Blouse Detroit Regional Chamber Clarence Brantley Oakland Community College Stephen Cassin Macomb County Government Dennis Duncanson Detroit Economic Growth Corporation Tom Eisbrenner Eisbrenner Public Relations Gary Gavin Blue Cross Blue Shield David Hay Kelly Services, Inc. Ronald Hesse GlobalAutoIndustry.com Frederick Hoffman Chrysler LLC Christopher Hopkins GRID4 COMMUNICATIONS Carmen Johnson AT&T Hayes Jones SMART Tyrone Jordan Central Michigan University Michael Kidder Altair Engineering, Inc. Daniel Kildee Genesee County Government Claudia Killeen General Motors Corporation Kimberly Klein Oakland Press John Kolon SMZ Advertising Jeff Love Baker College Dr. Vickie Markavitch Oakland Schools Jeff Mason Michigan Economic Development Corporation Matt Matsushita DENSO International America, Inc. Tim McCarthy Checker Sedan Co. Dr. Richard McMillan Macomb Community College Michael McNalley DTE Energy Joseph Melnick Butzel Long John Nantau Salesforce.com Bob Nichols Kettering University Jeffrey Parra Macomb Daily Daniel Pehrson LaSalle Bank Doug Rothwell Detroit Renaissance Jerry Rush ArvinMeritor, Inc. Dr. Gary Russi Oakland University Brenda Schneider Comerica Bank Richard Schwabauer NBS (Navigating Business Space) Dr. M. Richard Shaink Mott Community College David C. Sharp Flint Journal Matthew Sharp Oakland Business Review Paul Skalny U.S. Army National Automotive Center Roy Smolky Dassault Systemès Delmia Corp. Robert Stempel Energy Conversion Devices, Inc. Mel Stephens Lear Corporation John Thomas Tesla Motors, Inc. Dennis Toffolo Oakland County Olivia Visperas Comcast Mike Vohland Automotive Design & Production Dr. Lewis Walker Lawrence Technological University Paul Welday Strategic Public Affairs (SPA) Doug Wiescinski Plante & Moran Al Wise Analysts International John Wu Global Strategic Connections, LLC Dennis Zelazny Springer Publishing Company 23 AUT080C7AnnualReport.indd 23 1/15/08 12:04:26 PM

26 Automation Alley Staff Management Executive Director Ken Rogers Senior Director, Dr. Tom Anderson Director of Entrepreneurism Director, ConnecTech Phil Bertolini Director, Government Affairs Charles DeVries Director of International Noel Nevshehir Business Services Director, Member Services Roxanne Walker Director, Communications and Events Michelle Zellen Staff Business Development Executive Sharon Blumeno Supervisor, International Business Services Freia Boeckel Manager, Information Security RSA Jennifer Bowden Manager, ConnecTech Danielle DeLonge Executive Assistant Claudia DiMercurio Project Coordinator Alysia Green Supervisor, Customer Relations Lisa Lasser Assistant Director, ConnecTech Rochelle Meachum Event Coordinator Robyn Ritzema Accountant John Shirk Communications Administrator Katie Stout Business Development Executive Michelle Ulman Administrative Assistant Amy Young Interns International Business Intern Alexa Lipman International Business Intern Manuela Lomota Technical Intern Syed Roni ConnecTech Intern Jeff VanHowe Technical Intern Punita Virkud Report written by Katie Stout 24 AUT080C7AnnualReport.indd 24 1/15/08 12:04:26 PM

27 Foundation Members We would like to thank our Foundation Members for providing their regional leadership and support to help ensure the success of Automation Alley, and their assistance in branding the region as a global center for technology. Altair Engineering, Inc. Analysts International ArvinMeritor, Inc. AT&T Automotive Design & Production Baker College Blue Cross Blue Shield Butzel Long Central Michigan University Chase Commercial Banking Checker Sedan Co. Chrysler LLC Comcast Comerica Bank Dassault Systèmes DELMIA Corporation DENSO International America, Inc. Detroit Economic Growth Corporation Detroit Regional Chamber Detroit Renaissance Dickinson Wright PLLC DTE Energy Eisbrenner Public Relations Energy Conversion Devices, Inc. Flint Journal G3 Business Solutions General Motors Corporation Genesee County Government GlobalAutoIndustry.com Global Strategic Connections, LLC GRID4 COMMUNICATIONS Kelly Services, Inc. Kettering University LaSalle Bank Lawrence Technological University Lear Corporation Macomb Community College Macomb County Government Macomb Daily Michigan Economic Development Corporation Moore Stephens Doeren Mayhew Mott Community College NBS (Navigating Business Space) Oakland Business Review Oakland Community College Oakland County Oakland Press Oakland Schools Oakland University Plante & Moran Salesforce.com SMART SMZ Advertising Springer Publishing Company St. Clair County Community College Strategic Public Affairs (SPA) Tesla Motors, Inc. U.S. Army National Automotive Center Walsh College Wayne County 25 AUT080C7AnnualReport.indd 25 1/15/08 12:04:27 PM

28 2675 Bellingham Troy, MI Automation Alley Annual Meeting Sponsor AUT080C7AnnualReport.indd 26 1/15/08 12:04:28 PM