Detroit Regional Chamber

Transcription

1 Detroit Regional Chamber Maureen Krauss Vice President, Economic Development

2 Detroit Regional Chamber Overview The Detroit Regional Chamber is the premier business development organization dedicated to improving the economy of Southeast Michigan. Mission: Creating opportunities for the business community.

3 Detroit Region With over 20,000 members and affiliates that employ over three-quarters of a million workers, the Chamber is one of the largest chambers of commerce in the country.

4 Global 1,250 foreign firms from 34 countries Busiest border crossing in North America with Canada 25,000 foreign students studying in Michigan s colleges and universities Michigan businesses exported $51 Billion in goods and services in ,000 foreign born individuals reside in Michigan The infrastructure exists for foreign firms to succeed

5 Talent Highest concentration of engineers in the United States Over 350,000 IT Professionals 16 higher education institutions, with over 260,000 students enrolled Over 133,000 students enrolled in our Region s 9 community colleges

6 Innovation Rich history of innovation More than 120 foreign auto firms have engineering, R & D or technical centers here All 6 of the world s largest OEMs have research facilities in the region The University Research Corridor is ranked third among Innovation Clusters in life sciences R & D spending in the United States U.S. Patent Office opened Summer 2012

7 Economic Development Business Attraction Attracting jobs and capital investment from all corners of the globe Promote, grow and retain automotive industry Identify tax incentive programs Provide business advisory services, market intelligence and research, and referrals to technical specialists Host and market business and industry conferences, roundtables, and other events Provide guidance on site location and selection

8 Michigan/ Netherlands Relationship In 2012, the Netherlands was Michigan s 18 th largest trading partner, exporting $332.8 M 3,000 jobs supported by investments of Dutch companies 4,151 jobs supported due to MI's exports to the Netherlands 2012 Exports from Michigan to the Netherlands 13% 17% 15% 23% 32% 325--CHEMICALS 334--COMPUTER AND ELECTRONIC PRODUCTS 336--TRANSPORTATION EQUIPMENT 333--MACHINERY, EXCEPT ELECTRICAL All Others

9 Dutch Companies in Michigan

10 Automotive Industry Current State As capacity has increased, the break-even point rose to roughly 11 million at the end of 2011 Suppliers are concerned as the market rebounds that prices for raw materials will also increase Automakers are increasingly allowing material cost pass-through from suppliers, usually on a case-by-case basis Continued pressure has forced automotive suppliers to diversify into alternative fields, such as space and wind energy

11 U.S. Vehicle CAR Production Forecast:

12 U.S. Vehicle Production & Automotive Employment Forecasts

13 International Trends Overview Foreign-affiliated suppliers have made significant inroads into the U.S. market through acquisitions, sales to transplant automakers, and sales to the Detroit 3 Many foreign suppliers that have gained market share, have created or expanded transplant capacity in the U.S. An estimated 800-1,000 suppliers from overseas built plants in NA in the past 20 years After Tsunami in Japan and flooding in Thailand, there has been additional pressure to locate near global automakers assembly plants (USA) to enable just in time parts delivery

14 International Trends Foreign Supplier Highlights The Detroit 3 continue to purchase more foreign-based supplier components. Siemens, a German supplier, which had no share of audio systems in North America in 2003, had grown to 25% share by 2005 Denso Corporation, now the largest supplier in the world, reported that its sales to the Detroit 3 were rising and that the North America market represented about 40% of its total sales In August 2008, Chrysler named Denso Corporation as its first Supplier of Choice

15 Opportunities Fuel injections and turbochargers Over the past few years, the U.S. Federal Government has created mandates and incentives to help address energy security and environmental issues deriving from reliance on petroleum fuels. Some of these changes offer opportunities to automotive parts firms selling in the U.S. market. BorgWarner outperformed every auto supplier in North America over the past three years. Shares of the turbocharger marker more than doubled from 2010 through The firm projects that 77% of its new business will come from advanced engine technologies

16 Opportunities Battery production and alternative fuels Increasing demand for plug-in and hybrid vehicles is leading to significant investments in U.S. advanced battery production. A123 Systems used a $249 million grant from the U.S. Department of Energy s (DOE) Electric Drive Vehicle Battery and Component Manufacturing Initiative combined with incentives from the State of Michigan to help fund its new plant in Livonia, Michigan. The primary opportunities for parts suppliers in flex fuel engines are in corrosion and alcohol resistant fuel supply products such as hoses, pumps, lines and fuel tanks. Third generation biofuels have the same chemical properties as the base hydrocarbons in gasoline or diesel fuel and will likely need even fewer changes.

17 Opportunities Efficient accessories and vehicle electrification Opportunities exist for firms making efficient accessories such as electric power steering or high efficiency air conditioners. These types of accessories are also needed for hybrid vehicles which shut off their engines. Delphi, Denso, and Halla are offering high efficiency accessories Levant Power is trying to commercialize electricity generating shocks The same types of investments are occurring with electric motor and controls. Remy, Delphi, and UQM Technologies are either increasing current production capacity or adding new capacity to service the hybrid and plug-in vehicle market.

18 Opportunities Materials and transmissions All firms are making significant investments in engineering their vehicles for reduced weight. U.S. Steel are selling high strength metals that allow automakers to reduce component size and therefore weight Firms specializing in advanced composites are seeing increased sales New transmissions are raising the standard of technology, performance and quality. GM and Ford recently signed an agreement to jointly develop advanced nine-speed and ten-speed transmissions People are now working on eights and nines. Tens are on the bleedingedge side

19 Opportunities New technologies The industry needs a system of open innovation, collaboration, flexibility and responsiveness to customer demands. Dedicated Short Range Communications (DSRC); 3G, 4G, LTE Cellular; Wi-Fi; Bluetooth; and Global Positioning System Infotainment (e.g. Sync, Uconnect, and Cue) Human machine interface Collision warning and avoidance Lane departure warning Blind spot and pedestrian detection Road condition and event notification Adaptive route guidance with real-time traffic information Efficiency monitoring and carbon footprint accounting

20 START HERE! The Detroit Regional Chamber is here to answer your questions, provide strategic resources, connect you with public and private stakeholders, and help guide you through all stages of the investment process. 68 of the 100 original equipment suppliers to NA are headquarter or have a major presence in the Detroit region 9 out of 10 top automotive OEMs developing hybrid electric vehicles are located in Michigan Immediate opportunities to engage: SAE 2013 World Congress in Detroit 16 th -18 th April: Exhibitions for passenger car industry The Battery Show in Detroit 17 th -18 th September: Premier showcase of the latest advanced battery technology ITS World Congress in Tokyo 1 st -5 th October/ Detroit 7 th -11 th September 2014 : Safety and traffic management expo Automotive Testing Expo North America in Detroit 22 nd -24 th October: Latest test technologies and services

21 Detroit Regional Chamber Thank You Maureen Krauss Vice President, Economic Development