Innovations and Opportunities in Aerospace and Automotive. South Carolina Business & Research
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1 Innovations and Opportunities in Aerospace and Automotive South Carolina Business & Research
2 AICC Southeastern Region Increase economic development in Israel & the Southeast by fostering understanding, cooperation & business relationships between Israel and the Southeast For 22 years, AICC drives results. Over $1 Billion in completed transactions. Southeast is now home to 75+ Israeli companies.
3 The Southeast & South Carolina: Market Access
4 We Make the Connections US COMPANY Technology: Distribution: Service & Support: Partnership: Requirements, Architecture, Reusable Components Partners & Customers Theater Delivery and Support, Customization Licensing (2 way), Investment and Beyond AICC Services Offers Sourcing Israeli Innovation Finding and Qualifying Potential Israeli & US Partners Case Studies, Visibility and Research on the Israeli Market Introductions to Government and Universities/Research Institutions Bridging Cultural Differences & Getting Everyone on the Same Page Business to Business Networking both here and in Israel Focused Business & Emerging Technology Committees Business Missions to Israel Business Exchange Matchmaker Events BIRD Foundation Grants Technology ISRAEL COMPANIES Architecture Intellectual Property Reusable Components Solutions ISR Marketplace
5 AICC is the Southeast representative for the BIRD Foundation, a joint US&Israel fund, established as a joint initiative between the US and Israeli governments Mission To stimulate, promote and support joint (non-defense) industrial R&D of mutual benefit to Israel and the United States Funding Income from interest earned on $110 million endowment grant and from repayments from successful BIRD projects
6 South Carolina America s Best Kept Secret Is Not a Secret Anymore! 7 13 December 2013
7 SC Israel Collaboration Our Mission The Collaboration s mission is to stimulate business and research partnerships between companies and universities in South Carolina and Israel as a way to generate economic development, jobs, and investments to the benefit of all. Our 23-person Delegation Prominent business leaders World-class researchers Proven economic developers
8 Partner Organizations
9 Why South Carolina An International Leader in Attracting Foreign Direct Investment #1 South Carolina ranks first among states for jobs created by new and expanding international firms. IBM Global Location Trends Annual Report, 2012
10 Why South Carolina Succeeds Low Cost of Doing Business Pro-Business Environment Strong Industrial Base Exceptional Infrastructure Labor Availability Right to Work State The Southeast s lowest priced industrial electricity rates. (US DOE, EIA) Business Facilities ranked South Carolina among the top ten states with the lowest cost of labor. The 9 th lowest corporate income tax rate in the U.S. (The Tax Foundation) Ranked 5 th for best business climate by Business Facility magazine. Significant presence of advanced manufacturing BMW, Boeing, GE etc. Participation of research universities in industry via endowed chairs program. The Port of Charleston is one of the busiest container ports along the southeast & gulf coasts and is recognized as one of the nation s most efficient and productive. Efficient rail system, with port access, and 5 interstate highways. South Carolina has a strong and growing workforce, outpacing the U.S. in growth four out of the last five years (Bureau of Labor Statistics). South Carolina s unionization rate of 3.4% is the second lowest in the US (and only 1.6% unionization in the manufacturing sector) ** ** Source: U.S. Bureau of Labor Statistics, January 27, 2012 and
11 SC-Israel R&D Collaboration Agreement Between government of the State of South Carolina and the government of the State of Israel; executed 15 October Delegation of authority to SCRA and MATIMOP respectively Objective: To stimulate generation and development of new or significantly improved products or processes for commercialization in global markets Request for Proposals released 18 November Must involve at least one South Carolina based company and one Israeli company Companies may independently seek collaboration partners SCRA and MATIMOP may assist in identifying potential partners
12 SC-Israel R&D Collaboration Agreement Multiple awards under this RFP based on: Merit of the project proposals Budgets associated with those proposals Overall availability of funds Parallel funding track for collaboration: South Carolina company activities funded by SCRA Israeli company activities funded by MATIMOP Individual project cost between $500K and $2M, with a period of performance between 12 and 24 months At least half of the total project costs must be borne by applicants South Carolina companies must meet SC Launch criteria
13 Clusters where SC and Israel have Synergy Biomedical Advanced Materials Sustainable Systems (Water / Energy / Agriculture) Transportation (Automotive / Aerospace) Defense / Security Insurance / Health IT
14 Learn more about the R&D agreement and the unique advantages of doing business in and with South Carolina. 17:00 18:30
15 Innovations and Opportunities in Aerospace and Automotive Moderator Morris Ellison Partner, Womble Carlyle Sandridge & Rice, LLP Panelists Jonathan Zucker President, Intertech Group and Chair, South Carolina Israel Collaboration George Patrick Deputy Secretary, South Carolina Department of Commerce Tom Vogt Director, NanoCenter, University of South Carolina David Ginn President and CEO, Charleston Regional Development Alliance Nikolaos Rigas Associate Director, Clemson University Restoration Institute Guest Speaker Stephen Bohot Supplier Management Leader, Israel, Boeing Commercial Airplanes 15
16 Questions? with any questions for panelists during the presentation. 16
17 Fostering Aerospace in South Carolina S.C. Aerospace sector includes more than 200 manufacturers and suppliers. 23,000 Employees Three Research Universities with programs and research centers dedicated to aerospace.
18 Overview of Session Private sector perspective on aerospace Incentives available for aerospace and automotive companies in South Carolina USC McNair Center Aerospace work force education and training Charleston, South Carolina Clemson CU-ICAR Automotive work force education and training 18
19 Aerospace - Private Sector Explosive growth in the sector Rapidly developing supply base Excellent transportation infrastructure Low cost of doing business Very supportive and collaborative environment 19
20 Aerospace - Private Sector Skilled, accessible workforce Right-to-work state with low unionization rate (1.6% in manufacturing) High concentration of engineers, technicians and operators Large and highly skilled population of retired and exmilitary personnel (reducing overall training risk) Excellent training program: readysc Provides world-class, innovative training solutions and project management customized to specific needs 20
21 Recent expansion of The InterTech Group subsidiary, TIGHITCO into SC market to address growing market opportunities Advanced Composites Manufacturing and Assembly Center Opened in April, ,000 Square-Feet Planned (120,000 Square-Feet Completed) Composite Fabrication Major & Complex Composite Assemblies Program Management Automated Ply Cutting Hand Layup / Laser Ply Projection Automated Fiber Placement (Planned) Autoclave Curing Ultrasonic Inspection (Dual Robot TT) Paint 21
22 Over $2 billion committed to development of Boeing s presence in South Carolina Over 6,100 jobs to date and an additional 2,000 jobs by 2020 Boeing SC 787 Final Assembly represents the first time the company has delivered commercial aircraft outside of Puget Sound One of three locations worldwide delivering widebody jets Everett, N. Charleston, and Toulouse (Airbus) 22
23 23
24 South Carolina Just Right for Automotive & Aerospace
25 South Carolina Just right for Business. scjustright.com
26 The BMW Effect BMW BMW employs more than 7,000 South Carolinians. BMW has invested 5.2 billion dollars in South Carolina. Automotive industry has more than tripled with over 250 companies. About 70 percent of all BMW X models made in South Carolina.
27 South Carolina Automotive Industry
28 Why South Carolina? Assets = runways/infrastructure, available land, ready workforce Business-friendly environment with available incentives: Training through readysc Job Development Credits Various investment / infrastructure grants 28
29 Aerospace Investment in South Carolina $2.5 Billion Capital Invested (2006 to 2013) 10,000 Jobs Created
30 You are Cleared to Land in SC Boeing Boeing has more than 6,000 employees. Invested more than $1 billion in the state. Biggest aerospace company with nearly 350 suppliers in South Carolina.
31 Dr. Thomas Vogt The Globes Israel Business Conference 2013
32 Mission and Vision The McNAIR Center s mission is to advance the knowledge-based economy of the State of South Carolina through Creating and embracing dreams innovative research, collaborative education, outreach, and economic development. Ronald E. McNair
33 Private Funding
34 Private Funding Most recently, Marva Smalls gives $1 million gift for scholarships in aerospace
35 Background Strong need to train aerospace engineers to respond to the growth of aerospace industry in South Carolina >23,000 people 35
36 Mission and Vision The McNAIR Center s mission is to advance the knowledge-based economy of the State of South Carolina through innovative research, collaborative education, outreach, and economic development. Education, Workforce Development and Outreach Collaboration Research Innovation Economic Impact Materials and Composites, Systems Engineering and Design, Testing and NDE, Certification, Automated Manufacturing, Life Cycle Monitoring, Supply Chain Management Power Control and Energy Systems Design Cyber Security
37 Innovative research by McNAIR Create the design and manufacturing technology for the next generations of aircraft Teach the next generation of engineers
38 Innovative research by McNAIR Teaming with leading Tier1 suppliers and equipment manufacturers in the aerospace industry Research, education and internships Support alignment of total workforce Support STEM programs Innovation to create new products and businesses Influence supply chain norms Current production of components for the NH 90 helicopter, the Dassault Falcon 7X business jet and the Gulfstream G550.
39 Status of the McNAIR Center Minor aerospace started, 25 students MSc aerospace started, 7 students MSc engineering management, 3 students MSc systems design, approved BSc program under construction Core team McNAIR operational Group of highly motivated educators and researchers formed Undergraduate part time support International network of universities being formed to support study abroad First Research Contracts are in negotiations Ready to join the entrepreneurial activities within USC Columbia SCRA building Labs under construction Equipment selected
40 South Carolina Auto Industry Northern part of South Carolina is a major center for automotive manufacturing. Approximately 45,000 individuals are at employed at more than 250 automotive-related manufacturing companies. 40
41 Charleston South Carolina USA Market Overview David Ginn President & CEO Charleston Regional Development Alliance 41
42 42
43 Aerospace in Charleston 43
44 Automotive in Charleston 44
45 45
46 Charleston South Carolina USA Global Talent Magnet Population growth 3X U.S. average, since 2010 Regional employment growing 2X faster than U.S., since 2010 Top City in U.S. and World s Best lists A globally competitive location for business and talent 46
47 47
48 charlestoneconomicdevelopment.com 48
49 Clemson University International Center for Automotive Research
50 CU-ICAR S INDUSTRY FOCUS South-East now the hub of automotive manufacturing activity CU-ICAR created to serve the workforce and research/development/technol ogy needs of the Automotive Industry Through this engagement, create a knowledge-based economy in South Carolina, thereby promoting economic development in the State Improving Competitiveness of Existing Industries. SSTI (State Science and Technology Institute) One of Four Best Practices for University/Industry Collaboration. U.S. Dept. of Commerce
51 How? A Public/Private Partnership CLEMSON UNIVERSITY/ CLEMSON UNIVERSITY FOUNDATION SOUTH CAROLINA DEPARTMENT OF COMMERCE/LOCAL AND REGIONAL ECONOMIC DEVELOPMENT PARTNERS PRIVATE SECTOR Companies with a strategic interest in automotive/motorsports research, development, education or advanced manufacturing
52 An integrated experience bringing industry and academia together
53 Business Models
54 Industry Partners GM Koyo Bearings
55 AUTOMOTIVE ENGINEERING RESEARCH AREAS Manufacturing and Materials Advanced Powertrains Vehicle Electronics Automotive Systems Integration Vehicle Dynamics and Performance Connected Vehicles and Vehicle-to Infrastructure Interaction Human Factors /HMI
56 Program Characteristics: Consumer/Market Business Focus within Engineering Program Curriculum Developed in collaboration with industry CUTTING EDGE GRADUATE PROGRAMS WITH A FOCUS ON ACCELATED PRODUCT DEVELOPMENT AND SYSTEMS INTEGRATION MS in Automotive Engineering Ph.D. in Automotive Engineering Strong industry-student interaction through targeted internships Utilizes industry and academic leaders for teaching Graduates to date: 19 Ph.D., 141 MS Current Enrollment: 219 students
57 Deep Orange Vehicle: World Debut at MBS, August 2013
58 Thank you!
59 17:00 18:30 Discovering the Secret: Securing funding through grants, incentives and the recently signed South Carolina-Israel Collaboration Agreement
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