Manufacturing Meets Planet M: The Challenge and Opportunity for Michigan. Glenn Stevens Executive Director, MICHauto Grand Rapids, MI USA
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1 Manufacturing Meets Planet M: The Challenge and Opportunity for Michigan Glenn Stevens Executive Director, MICHauto Grand Rapids, MI USA
2 Michigan s Automotive & Mobility Association Our mission is to promote, retain and grow Michigan s signature industry
3 MICHauto Investors Highgate 3
4 MICHauto Partners
5 The MICHauto Agenda 1. Invest in our Talent Pipeline 2. Protect, retain and enable growth for our current corporate citizens 3. Promote the industry as high tech, global and growth 4. Incentives and business climate matter 5. Utilize Automotive/IT/Defense/Aerospace as a platform for growth and diversification
6 Auto and the IoT Converging
7 $57 Billion
8 Epicenter of the North American Auto Industry Michigan is the densest cluster of automotive design, engineering, R&D and manufacturing on the planet. Today, Michigan remains the center of the North American industry and is well positioned to drive the future. 16 automakers 12 assembly plants In Michigan 25 assembly plants JIT from Michigan 1,800 suppliers, including 61 of the 100 top suppliers to North America 1400 Tool & Die Companies
9 OEM Design & Engineering 9
10 80% U.S. Auto R & D in Michigan $10 B
11 Engineering & Training 16 Universities With Engineering Programs 600 automotive Skilled trades and training programs Grand Valley State University 11
12 OEM and Supplier Investments Last 5 years Michigan received $26.7 Billion 12
13 No. 1 in Light Vehicle Production in the U.S. No. 1 in Automotive R & D in North America No. 1 in Auto industry jobs No. 1 in Engineers No. 1 in Supplier plants and facilities No. 1 in Tool and Die shops 13
14 Protecting and growing these assets is our main objective however
15 Our World is Changing Technology, Regulatory, Business Model Changes Global Megatrends Production Shifts The Competition Competition for Human Capital to Enable Growth and Innovation
16 Challenge
17 The person who is the star of previous era is often the last one to adapt to change, the last one to yield to logic of a strategic inflection point and tends to fall harder than most. Andrew S. Grove
18 Change Accelerating urbanization Climate change and resource scarcity Demographic shifts A shift in economic power Industry 4.0 Technological breakthroughs #MichiganIsAuto
19
20 12 Assembly Plants +25 JIT
21 $23+ Billion 40,000+ direct jobs
22 Mexico Growth Low labor cost, energy, incentives (R&D) Exchange rates Trade agreements Growing demand for small cars Geography / Exports
23 We obviously have to redouble our efforts to develop human capital, said Ildefonso Guajardo, Mexico s secretary of the economy, in a recent interview. In the long run, cheap labor isn t a sustainable advantage.
24 Perhaps strongest of all southern states with regards to cohesive statewide economic development. Governor Haley and Commerce Sec. Bobby Hitt (BMW)very focused on automotive industry Commerce Department and Upstate Alliance (Private ED) very present at NA automotive events and with suppliers SOUTH CAROLINA
25 Shifts in Centers of Vehicle Design Europe: 32 North America: 8 Greater China: 56 Middle East/Africa: 1 Japan/Korea: 15 South Asia: 13 South America: 4 Number of OEM Primary Global Vehicle Design Centers by Region Source IHS Automotive
26 An Urban Centered World U.S. 90% Urban U.S. 85% Urban China 73% Urban China 55% Urban Total Total Population Population B B
27
28 Mobility any technology or service that enables people and goods to move around more freely. sophisticated connectivity technology in vehicles to assist drivers with navigation, parking, road conditions and safety. also refers to multi-modal and intermodal solutions that integrate personal vehicles with public transit and reduce congestion and emissions.
29 AutoTech + + One Month
30 30
31 In Technology, whatever can be done will be done Andrew S.
32 Solutions for MOBILITY AS A SERVICE
33 Our Priority: Saving Lives 1 million deaths globally each year $500 billion economic damage 963 Traffic Fatalities 2015 in Michigan 90% by human error
34 The Economic Opportunity $200 Billion Connected Vehicle Market Just by 2020 $6 Trillion Investment in IoT
35 Our future depends on positioning Michigan as a Global epicenter of Automotive AND Next Generation Mobility
36 1. Compete Globally in Advanced Manufacturing $57 Billion
37 2. Position Michigan as a Global Mobility Center
38 "The future of the car is in Silicon Valley" July 8, :17 p.m. ET The future of the car is in Michigan
39 How to Position Michigan Assets Strategic Convening Go and See
40 Suppliers OEMS New Automated & Autonomous Vehicles Data Service Location Service Telematics Personal Mobility
41
42
43
44 Where is the global epicenter for autonomous and connected vehicle research and development?
45 Michigan Mobility Initiative Positioning Michigan as Connected and Autonomous Vehicle Center Projects for Testing and Infrastructure Positioning Michigan - Branding Policy leadership to enable research People - Education & The Talent Pipeline
46 Projects
47 Mcity
48 ACM
49
50 Smart Corridor Michigan is home to the largest deployment of Vehicle to Infrastructure (V2I) technology in the United States called the Smart Corridor.
51 Kettering University GM Mobility Research Center Kettering University s GM Mobility Research Center is a $7 million test facility consisting of a 21-acre track and road course with a 3.1 acre pad area, sited within the coverage area of the nation s only university owned and operated 4G LTE Advanced and WiMAX Wireless network. This unique facility is designed to develop and test autonomous and connected vehicles under a wide range of conditions within a next-generation private mobile communications environment michauto.org
52 Cybersecurity Education Collaboration
53 Keweenaw Research Center
54 MaaS Mobility as a Service for Detroit 700,000
55 MaaS Mobility as a Service
56 Michigan s Investment in Mobility The State of Michigan, Michigan Department of Transportation and our public institutions and universities are making investments to ensure we have the right infrastructure, assets and legislation to support the Mobility industry. Southeast Michigan Connected Vehicle Test Bed opens Legislation allowing the testing of autonomous vehicles on Michigan roads Detroit Test Bed Opens M City opens in Ann Arbor, a 30-acre connected and autonomous vehicle test center. State of Michigan announces $100 million development of the American Center of Mobility. $25M Safety Pilot Model Deployment in Ann Arbor Smart Corridor 3 formed to developed first 'smart highway' in U.S. Governor Snyder announces 'We Run On Brainpower' Initiative 4 Michigan unveils Planet M campaign to capture and promote mobility developments in Michigan. Pending legislation to expand autonomous vehicle testing without driver present on Michigan roads City of Detroit to hire Chief of Mobility Innovation
57 Positioning
58
59
60
61
62 R&D $1.2 Billion $1.0 Billion $126 Million 400 Purchasing Staff Artificial Intelligence
63 Supplier Innovation
64 Design
65 Start-up Ecosystem
66 Aerospace/IT/Defense
67
68 Policy Keeping Michigan at the forefront of legislation and environment to enable safe research and development and testing for autonomous and connected vehicles
69 People The source of innovation The driver for growth
70 Our Human Capital Supply Chain Veterans Attract Talent for our Industry Youth New Americans Training The Structurally Unemployed
71 We ll deploy our resources where skills are available, Nair said. It s a polite way of saying Michigan must attract and grow the talent his company and the whole industry needs, or it risks losing it all.
72
73 ank Occupation 1 Software Developers, Applications 2 Mechanical Engineers 3 Electrical Engineers 4 Manufacturing Engineers 5 Industrial Engineers 6 Production Workers, All Other 7 Sales Representatives, Wholesale and M 8 Maintenance and Repair Workers, Gen 9 First-Line Supervisors of Production an
74 1. Create the ecosystem for startups it s the environment you provide. 2. Self develop an army of great minds.
75 Perception of the Auto Industry Research Results Action Opportunities in the AutoMobility Industry
76 Place
77 Detroit vs. Silicon Valley Workforce $68,354 Current Median Earnings 2,217,090 Total Jobs (2015) $133,334 Current Median Earnings 3,277,587 Total Jobs (2015) 53,393 Elec., Indust., & Mech. Engineers $44.32 Med. Hourly Earnings 26,853 Software Developers & Programmers $40.68 Med. Hourly Earnings 23,569 Elec., Indust., & Mech. Engineers $55.86 Med. Hourly Earnings 150,212 Software Developers & Programmers $60.67 Med. Hourly Earnings
78 Detroit vs. Silicon Valley Innovation 3,831 Patents related to vehicle navigation and related location data processing ( ) 49 Connected and Autonomous Vehicle Projects (2015) $22,452,530,555 Amount of automotive related investments announced ( ) 1,213 Patents related to vehicle navigation and related location data processing ( ) 35 Connected and Autonomous Vehicle Projects (2015) $564,116,370 Amount of automotive related investments announced ( )
79 Detroit vs. Silicon Valley Cost of Living $ Real Value of $100 (Tax Foundation 2016) $268,788 Home Value (2016 Q2) $88.97 Real Value of $100 (Tax Foundation 2016) $1,001,000 Home Value (2016 Q2) $1,031 Rental Rates (2016 Q2) $3,510 Rental Rates (2016 Q2)
80 + = Global Automotive Industry Epicenter Largest Concentration of Connected & Autonomous Vehicle Testing Smart Mobility Opportunity for Michigan
81 As it turns out, companies like Ford and GM have experience actually building cars, not just preaching disruption.
82
83 Opportunity
84 You can be the subject of a strategic inflection point but you can also be the cause of one
85 Inventors. Designers. Makers. Future Builders #MichiganIsAuto
86 Thank you Glenn Stevens Executive Director,
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