Would You Like Fries With That Innovation?

I was just talking to someone the other day about how wonderful life would be without coax cables and power cords. The people at Fulton Innovations, a subsidiary of Alticor Corp., are all about freeing us from that burden.

Which leads us to the question of the day: Would you like fries with that innovation?

Fulton Innovation (www.fultoninnovation.com), the creator and exclusive licensor of eCoupled™ intelligent wireless power, has announced that its technology will be used in the nation's first restaurant with a full-scale rollout of integrated wireless charging. Kitchen 67 Brann's Cafe, in Grand Rapids, Mich., will officially open on August 25th as one of the first restaurants in the nation where customers can wirelessly charge Qi-compatible devices at their table.

Eighteen tables at Kitchen 67 allow customers to charge their Qi-compatible mobile phones by simply placing their phones on the table. Restaurant patrons can enjoy their meal without having to worry about dragging around cords and locating an available outlet where they can charge their devices.

The technology is embedded into the surface of each table using a Leggett & Platt, Inc. Helios™ transmitter and Krueger International (KI) Wireless Power Grommet, a solution developed through a collaboration of the three companies. The grommet utilizes eCoupled intelligent wireless power technology and is Qi-compliant, meaning it will work with a variety of mobile phones on the market today, regardless of brand. eCoupled technology adapts to deliver the exact amount of power required by the device by communicating with it in real-time, and stops charging once the device has completed its charging cycle.

Kitchen 67 provides seamless access to a neighboring Verizon Wireless store to provide customers a dining experience that marries good food with the latest in technological innovation. Not only can customers buy Qi wirelessly powered phones in the Verizon store and use them immediately in Kitchen 67, but they can enjoy a meal while waiting for their existing phone to be serviced.

 A notification screen in Kitchen 67's dining area will alert customers about their phone's status at the Verizon store. Verizon, along with Fulton Innovation, is a member of the Wireless Power Consortium, and is at the forefront of providing customers with Qi-enabled mobile devices that can be charged on Qi-compatible surfaces, such as those at Kitchen 67.

The concept of a restaurant incorporating technology, while somewhat new in the United States, is already a standard offering internationally, most notably in Japan. Japan currently boasts over 2 million Qi-compatible devices being used in the market today and over 120 locations offer Qi wireless power charging stations in tables as a standard feature.

"Kitchen 67's decision to integrate wireless power charging technology in its tables demonstrates that wireless power has moved beyond the home and office. We expect more retailers, restaurants, hotels, and other public spaces to install wireless power stations soon so that consumers no longer have to hunt for power outlets on the road," said Dave Baarman, Director of Advanced Technologies for Fulton Innovation. "There are no limits to what can be done with wireless power technology and we are in talks with several partners to bring even more innovation to the industry."

Last Chance Mile: The Reinvention of an American Community tells the stories of the entrepreneurs of Grand Rapids who created a cluster of prosperity, the Medical Mile, while the rest of Michigan was collapsing around them.

Last Chance Mile is available wherever books are sold online including Abbott Press, and can also be ordered from your favorite brick-and-mortar bookseller.

The Apartment Lounge: Building an LGBT Community tells the story of two entrepreneurs who fought discriminations for decades in one of Michigan’s most conservative cities, Grand Rapids. These two men, partners in all things, just wanted to build a business. Instead, they created a community. 

The Apartment Lounge: Building an LGBT Community is available exclusively through Amazon.

Grand Rapids Needs Talent tells the story of an innovative community of technology professionals: IT wizards creating software, writing code, building apps that came upon a perplexing problem. They were running out of talent. The solution: A new partnership between business and higher education that is filling the talent gap. 

Learn how they are doing it in Grand Rapids Needs Talent, available exclusively through Amazon. 

Right To Work: Outrage in Michigan tells the story of how Big Labor and Michigan Democrats were blindsided by a Michigan Chamber of Commerce drive to make Right To Work the law of the land in Michigan.

Right To Work: Outrage in Michigan is available wherever ebooks are sold including Amazon, Barnes & Noble, and iTunes.

Quenching The Thirst tells the stories of the entrepreneurs who are creating the 

craft brewing industry in Michigan. Quenching The Thirst is part of the Restore The Roar: Manufacturing Renaissance series of ebooks, available wherever ebooks are sold including Amazon, Barnes & Noble, and iTunes.

Where Are The Workers? is another of the ebooks in the Restore The Roar: Manufacturing Renaissance series examines the problems manufacturers are having find qualified workers and what one community is doing about it.

Where Are The Workers? is available wherever ebooks are sold including Amazon, Barnes & Noble, and iTunes.

For more books, essays, and articles by Rod Kackley please to go www.rodkackley.com, or download the free Rod Kackley app through Google Play or the App Store.

And feel free to contact Rod at rod@rodkackley.com

Driving Innovation, Refusing To Accept Status Quo

Ford Energy

Driving Innovation,

Refusing to Accept the Status Quo

by Rod Kackley

 

 

This is a great example of the partnership between government -- local, state, and federal -- and business to drive innovation.

The basic principle here is the need to no longer accept the status quo and the need to push hard for a better way.

Michigan community and environmental leaders praised yesterday's announcement of improved fuel economy and tailpipe emissions standards, while key auto suppliers say they are ready to provide the technology needed to help automakers meet the new requirements.

This is also going to be one of the driving theme of Manufacturing Renaissance, due out as an ebook in September.

"Automakers are looking for solutions that provide better fuel economy and reduce emissions while maintaining performance," said Erika Nielsen, Director of Marketing and Public Relations at BorgWarner, a global auto supplier headquartered in Auburn Hills, Michigan. "That means new opportunities for our company, because our turbochargers, variable cam timing, dual clutch transmission modules and other powertrain technologies can help provide cleaner vehicles while maintaining or improving performance."

 

"Over the past several years, we've developed a new industry in Western Michigan: Cutting edge battery technology to power the next generation of clean cars and trucks," said Grand Rapids Mayor George Heartwell.  "Five years ago, that technology was being imported from Japan. Now we're building it here in the United States.  That's what happens when you combine smart public policy with Michigan's private-sector auto expertise."

 

"Investing in cleaner, more efficient vehicles is vital for our outdoor heritage here in the Great Lakes," said Andy Buchsbaum, Director of the National Wildlife Federation's Great Lakes Regional Center.  "And it's directly tied to the resurgence of the U.S. auto industry, which is crucial for the state of Michigan. The auto industry has added 35,000 jobs in Michigan since 2009, and if you look at what automakers are saying about their product and investment announcements, nearly all of those jobs are linked to high-mileage, lower emissions vehicles."

 

"These new standards matter for the city of Detroit. Not only are plants like Jefferson North adding back jobs to build new cleaner cars and trucks, but more fuel efficient vehicles mean less pollution, improved health for families, and savings at the pump," said Simone Lightfoot, Climate Equity and Sustainability Manager, Detroit Branch NAACP. "It's a great example of how federal public policy can directly improve the economic and environmental challenges facing our urban centers."

 

"This is a major step towards reducing the carbon pollution that causes climate change," said Lisa Wozniak, Executive Director of the Michigan League of Conservation Voters. "We're cutting U.S. oil imports by one-third and saving three million barrels per day.  So instead of sending money to the Mideast, we can invest in clean technology and Michigan jobs here in the Midwest."

 

"These standards are a massive step forward in curtailing our reliance on oil and reducing carbon emissions," said Tiffany Ingram, Midwest Advocacy Director for the Natural Resources Defense Council. "The money saved at the pump will help Michigan families to the tune of $1.1 billion a year in 2030."  

 

The new standards announced yesterday by the Obama administration, building on bipartisan backing for improved fuel economy and reduced emissions, were crafted with support from 13 automakers, automotive suppliers, state and federal regulators, the UAW and environmental groups. In preparation for them, automakers and suppliers have invested in technology needed to produce cleaner, more fuel-efficient vehicles. Overall, the U.S. auto industry has added 236,000 jobs since the industry hit its low point in June of 2009.

 

DrivingGrowth.org, a website that tracks the revitalization of the U.S. auto industry, is sponsored by three leading U.S. environmental organizations: The Natural Resources Defense Council, the National Wildlife Federation, and the Michigan League of Conservation Voters Education Fund. A video describing BorgWarner's contribution to fuel efficiency and lower emissions is available on the site at http://www.drivinggrowth.org/driving-growth-in-mi-borgwarner/

 Last Chance Mile: The Reinvention of an American Community is available today. More information at www.rodkackley.com.

 

 

All Boats Rising, As Manufacturing Grows

All Boats Rising
By Rod Kackley

The Detroit News reports today that the Big 3 have pushed factory capacity to the max -- 100 percent.
Manufacturing has always driven the U.S. economy and it will again. That is one of the strongest points that will be made in Manufacturing Renaissance, a book that will be released in September. Other industrial and economic sectors of the U.S. will improve as the fortunes of our manufacturing base grow.

Here is evidence of that:

General Motors' Spring Hill Complex expects to save over $800,000 a year on electricity at its general assembly and engine plants by upgrading to Light Corporation's high-efficiency Semaphore fluorescent light fixtures controlled by Kanepi Innovations' wireless lighting controls. The combined Spring Hill project presents an initial return on investment of just over 1-year, an investment expected to provide over $12 million in cost savings over a 15-year period.

 

The replacement of nearly 4,500 light fixtures and the implementation of wireless controls are projected to save General Motors over 8.5 million kilowatt hours (kWhr) of electricity per year - equivalent to removing the amount of carbon emissions from consuming 657,088 gallons of gas every year.

 

"Replacing older lighting technology is a cost-effective way for us to significantly conserve energy and save money as we transform our site into one of the world's most innovative and flexible manufacturing facilities," Ken Knight, GM Spring Hill Manufacturing complex manager said about the project.

 

GM through the use of Kanepi Innovations' wireless lighting controls now has the ability to schedule, manage, and monitor the use of electrical devices within the facility to ensure electrical energy is only consumed when necessary. Spring Hill's lighting is now optimized to specific tasks, areas, and schedules. The controls are estimated to save 50% more energy than the high-efficiency lighting retrofit alone.

 

General Motors' practice of energy conservation is continuous. The extensive reduction in energy at the Spring Hill Complex, through Light Corporation fixtures and Kanepi wireless controls, has helped General Motors earn the energy star partner of the year Award by the US EPA. This recognition underscores GM's role as a worldwide leader in environmental responsibility.

*  *  *

Manufacturing is not just for automotive OEMs and suppliers. It is also a major component in the health care sector. More on that is including in the story of Grand Rapids, Mich. and the creation of its Medical Mile, in Last Chance Mile: The Reinvention of an American Community.

More information on both books, and other articles on manufacturing are available at www.rodkackley.com

 

 

 

Making Detroit Roar, Hoping We Are Ready

Making Detroit Smile
By Rod Kackley

This goes right along with what analysts were saying at the Center for Automotive Research Management Briefing Seminars in Traverse City, Mich. a few weeks ago.

It is alsojust what Detroit and the rest of the auto manufacturing world (and you know that includes Ontario, Canada) really wants to hear.

The August new-vehicle selling rate is expected to be the highest monthly rate in more than four and one-half years, according to a monthly sales forecast developed by J.D. Power and Associates' Power Information Network® (PIN) and LMC Automotive.

 

Retail Light-Vehicle Sales

August new-vehicle retail sales are projected to come in at 1,066,200 units, which represents a seasonally adjusted annualized rate (SAAR) of 12.3 million units. The year-over-year growth rate in retail sales continues a double-digit trend for a fourth consecutive month. Retail transactions are the most accurate measurement of true underlying consumer demand for new vehicles.

 

"August continues this summer's trend of healthy growth in retail sales as dealers work to sell down inventory in time to make room for 2013 models," said John Humphrey, senior vice president of global automotive operations at J.D. Power and Associates. "To date, automakers have been diligent in better balancing production with demand, which has been critical to the improved financial performance for many brands. Going forward, this discipline will be tested as demand looks to cool somewhat through the balance of the year."

 

While incentives are down slightly in August, compared with July ($106 less per vehicle, on average), there are deals driving some activity as the model-year sell down takes hold. Consumers are pushing aside the economic risks, as the need to replace their current vehicle is matched by availability of both inventory and credit.

Total Light-Vehicle Sales

Total light-vehicle sales remain stable, with the volume in August expected to come in at 1,285,300 units, a 16 percent increase from August 2011. Fleet represents only 17 percent of total light-vehicle sales, which is lower than the 21 percent year-to-date average.

 

Sales Outlook

LMC Automotive recently revised the outlook for total light-vehicle sales in the United States downward to 14.3 million units from 14.5 million units, with retail sales at 11.4 million units, down from 11.5 million units. Weaker economic growth and concerns with the European crisis are the driving factors for slower growth during the second half of the year. The industry is still expected to achieve the 15-million-unit level in 2013, but the outlook has been tempered from a projected 15.2 million units, as the risks in 2012 spill over into next year.

 

"The strength in August light-vehicle sales takes some of the pressure off expectations for the balance of the year, but a high level of risk lingers," said Jeff Schuster, senior vice president of forecasting at LMC Automotive. "We expect the current seesawing in auto sales to continue for the foreseeable future, but the overall picture in 2012 remains positive."

 

North American Production

North American light-vehicle production volume has increased by 23 percent through the first seven months this year, compared with the same period in 2011. The increase of nearly 1.7 million additional vehicles highlights the industry's recovery from the challenging production environment in 2011.

Production for Honda and Toyota in the first seven months of 2012 are up 79 percent and 65 percent, respectively, as recovery by both manufacturers takes hold. U.S. manufacturing growth is outpacing the rest of the North American region, with a 27 percent year-to-date increase as newer capacity drives the growth. Production in Mexico has increased 14 percent, with further growth expected as new key models ramp up. Canadian manufacturing has increased 20 percent year to date, but the level of future volume is at risk, as the domestic manufacturers and CAW begin labor negotiations.

Vehicle inventory in early August declined slightly to a 54-day supply, compared with 58 days in July. Car inventory remains at a below-normal level with a 47-day supply, down from 49 days in July. Truck inventory is at normal levels with a 61-day supply, down from 67 days in July.

"With the robust production activity outpacing the increases in demand, North American volume is approaching the 15.0-million-unit level for the first time since 2007," said Schuster. "However, given that inventory has normalized and growth in demand is expected to slow, LMC Automotive is holding the forecast for 2012 at 14.9 million units for the year."

However this still begs the question, are we really ready for this auto industry revival? Where is the talent? More on that and other manufacturing stories are posted at www.rodkackley.com

 

Author's note: This J.D. Power forecast is especially good news for auto industry suppliers. We will have more on this later today and tomorrow, and of course it is a continuing theme in Manufacturing Renaissance that will be released in September- Rod

And please don't forget the story of the reinvention of Grand Rapids, Mich., Last Chamce Mile: The Reinvention of an American Commujnity, is now on sale at www.rodkackley.com.

 

Renaissance: It Never Happens In a Vacuum

This is a warning that has to be taken seriously. The Center for Automotive Research is an institution that matters. Its reports are always worth reading.It should also be noted that this study was partially underwritten by Ford Motor Company. That said, please read this warning from CAR:

CAR has produced a study that models Japanese automotive vehicle exports to the United States and estimates the likely effect of a tariff reduction brought on by a Free Trade Agreement (FTA) between Japan and the United States that would be a characteristic of Japan’s inclusion in the Trans Pacific Partnership (TPP).

Japanese vehicle exports to the United States are estimated to increase by 105,000 units or $2.2 billion (an increase of 6.2 percent) due to the elimination of a 2.5 percent tariff. As a result, U.S. vehicle production is estimated to fall by 65,100 units which CAR estimates would result in a loss of 2,600 direct U.S. automotive manufacturing jobs. An additional loss of U.S. supplier jobs is estimated at 9,000 and the loss of spin-off jobs at 14,900.

The study, “The Effects a Free Trade Agreement with Japan will have on the U.S. Auto Industry,” also examines the effect of changing exchange rates on Japanese vehicle exports. CAR’s exchange rate model for Japanese vehicle exports estimates that if the real yen/dollar exchange rate changed from a level of 90 yen/dollar to 100 yen/dollar, it would result in an increase of vehicle exports to the U.S. market of 15.1 percent, and a decrease from 90 yen/dollar to 80 yen/dollar will result in a decrease in exports of -15.1 percent, and in each case, the elimination of the 2.5 percent U.S. vehicle import tariff would increase exports by a further 6.2 percent.

CAR’s estimate of the increase in the number of Japanese vehicle imports is 362,800 in the case of the FTA and a depreciation of the real level of the yen/dollar exchange rate from 90 to 100. CAR’s forecast of production and employment loss in this case of a change in the exchange rate from 90 to 100 yen/dollar and the elimination of the 2.5 percent tariff as a result of a FTA is a loss of about 225,000 units of U.S. vehicle production.

“The combination of an FTA between the U.S. and Japan and a significant depreciation of the yen versus the dollar would have serious effects on production and employment in the U.S. auto industry,” said Sean McAlinden, executive vice president of research and chief economist at CAR.
CAR has significant experience conducting economic impact analyses and has carried out the majority of national level automotive economic contribution studies completed in the United States since 1992.

The report was written by McAlinden, and Yen Chen, a senior economist at CAR. Financial support for this study was provided by Ford Motor Company. The complete study is available at www.cargroup.org.

Link to study

For more on the subject of manufacturing and the renaissance of this vitally important economic sector, please visit www.rodkackley.com

Talking Car Technology, Are You Listening?

This is the kind of innovation we need to continue the Manufacturing Renaissance that is underway in the U.S.

A world where cars talk with other cars and traffic signals is literally right around the corner. The U.S. Department of Transportation (USDOT), in collaboration with the University of Michigan Transportation Research Institute (UMTRI), Aug. 22, 2012, kicked off a year-long Safety Pilot Model Deployment test vehicle-to-vehicle and vehicle-to-infrastructure (V2X) technology in Ann Arbor, Mich.

That is part of a 30-month program will establish a real world, multimodal test site in Ann Arbor for enabling wireless communications among vehicles and roadside equipment for use in generating data to enable safety applications. Passenger cars, commercial trucks, and transit buses will be included that are equipped with a mix of integrated, retrofit, and aftermarket V2V and V2I-based safety systems, a technology that could prevent thousands of crashes.

 “This is a tremendous opportunity, and we are very excited to be able to support the USDOT’s demonstration of cutting-edge transportation technologies in our community.” said Program Manager Jim Sayer, an associate research scientist at UMTRI.

 The data generated and archived as part of the model deployment will be used for estimating safety benefits in support of future decisions by the USDOT, as well as for use by the broader transportation industry in developing additional safety, mobility, and environmental applications utilizing wireless technologies. The testing phase will last twelve (12) months, and include approximately 2,850 vehicles.

 “We feel honored to be hosting the national test environment for vehicles that don’t crash” said Peter Sweatman, UMTRI director, adding “we look forward to helping many private and public sector organizations advance connected vehicle technologies which save lives and promote efficient movement of cars, trucks and transit buses”.

 Partners in supporting UMTRI on the program include the Michigan Department of Transportation, the City of Ann Arbor, Parsons Brinkerhoff, Mixon Hill, HNTB, SAIC, Texas Transportation Institute, AAA of Michigan, and ESCRYPT. Additional support is being provided by the Office of the Vice President of Research at the University of Michigan and the Michigan Economic Development Corporation.

DENSO International America, Inc. (DIAM), with facilities in Southfield and Battle Creek, Mich. is one of the suppliers providing the "talking car" technology.

DIAM is providing two types of dedicated short-range communications (DSRC) devices, which are the devices that allow vehicles to communicate or "talk" with other equipped vehicles and infrastructure. DENSO's two DSRC devices being tested are 1) An integrated original equipment device used on light vehicles, and 2) An aftermarket retrofit device equipped on light vehicles, heavy trucks and buses.

DENSO has been working on Connected Vehicle, or what company researchers call V2X technology since 2003, and one of the main focuses is on DSRC devices. The DSRC's primary function is to assess the surrounding environment based on accurate and precise data exchanges with other vehicle DSRC transceivers and roadside hotspots. The data exchanges include a vehicle's location, velocity, acceleration and path history, which can enable on board computers to predict trajectories and reduce the likelihood of collisions. That same data, along with additional information from the traffic signal, can also help drivers avoid running red lights and prevent crashes at controlled intersections (roadside hotspots).

According to the USDOT, nearly 3,000 cars, trucks and buses equipped with "connected" Wi-Fi technology will enable vehicles and infrastructure to "talk" to each other in real time to help avoid crashes and improve traffic flow. This is the USDOT's second phase of the Connected Vehicle Safety pilot and, to date, is the largest road test of connected vehicle crash avoidance technology. 

DENSO believes V2X has the potential to revolutionize safety and convenience on our nation's roads. A company press release said the Japan-based company anticipates deployment of Connected Vehicle technology in the U.S. in the next few years.

Of course the creation of new products and technology is only part of the innovative process. The other and perhaps most important is the innovation of changing consumer purchasing habits. That is more than possible. Remember, Baby Boomers bought FM converters for their cars because they were convinced that AM radio just wasn’t enough.

The Today Show did a segment on this story on NBC:

 http://www.umtri.umich.edu/news.php?id=3147

 

 

 

 

Chinese Connection Controversy

 

A123 Systems (Nasdaq:AONE), a developer and manufacturer of advanced Nanophosphate® lithium iron phosphate batteries and systems, has announced the execution of definitive agreements with Wanxiang Group Corporation, which follows the non-binding memorandum of understanding (MOU) that A123 signed with Wanxiang on August 8, 2012. Wanxiang is China's largest automotive components manufacturer and one of China's largest non-government-owned companies. Under the terms of the agreements, Wanxiang plans to invest up to $465 million in A123, which includes an initial credit extension of $25 million that A123 expects to receive this week. The full investment from Wanxiang is expected to provide A123 with the capital necessary to strengthen the company's competitive position in the global vehicle electrification and grid energy storage markets.

Is this a good thing? A123 Systems believes so, according to its chief executive officer, Dave Vieau.

 "We consider today's announcement to be a strong validation of A123's technology and the company's ability to compete in high-growth markets," said Vieau, CEO. "We believe that the significant commitment of capital from Wanxiang would help strengthen A123's financial position, and by leveraging Wanxiang's global capabilities, we expect to see increased demand for our products. Further, Wanxiang has demonstrated its commitment to partnering with and investing in U.S. companies, so we also believe that we will continue to expand on our strong manufacturing and systems engineering capabilities in Michigan and Massachusetts."

However, there are others, primarily in Washington, who are very bothered by this Chinese connection, as documented by Crain's Detroit Business.  A link to that article is here.

*   *   *

Author's note: Automotive manufacturing doesn't begin and end in Detroit anymore. And the industrial sector doesn't begin and end within the U.S. shores either.  I am exploring this international connection, this concentric circle around the globe, as the creation of my next book,  Manufacturing Renaissance, continues.

And you will find other stories on manufacturing at my web site, www.rodkackley.com

The story of Grand Rapids, Mich.'s transformation is available now, Last Chance Mile: The Reinvention of an American Community.

You can also find more information on that at www.rodkackley.com

Here's Why Manufacturing Matters

Harris Private Bank Report: Housing and Manufacturing Adding Momentum to U.S. Recovery

- Housing and manufacturing sectors showing signs of life

- Americans focusing on increasing household savings and paying down debt

- Foreign markets continue to face a number of fiscal challenges

- Growth in profits will pick up following lower energy and commodity input costs in third quarter

While the U.S. economy continues to face an uphill recovery, a variety of sectors are witnessing significant growth, according to the Fall Outlook for Financial Markets report by Harris Private Bank, a part of BMO Financial Group.

 The report revealed that in the second quarter of 2012, the U.S. economy slowed to an annualized 1.5 per cent growth rate – down from a 2.0 per cent pace in the previous quarter. However, there were some positive indicators:

 The housing sector continued to stabilize as a result of low interest rates and early recognition of troubled loans.

The manufacturing sector made gains through inventory building, rather than user demand, focusing on stock as current inventory levels are below historic norms.

Overall, incomes in the U.S. rose 0.5 per cent, pushing the nation's savings rate to 4.4 per cent as consumer spending stagnated.

"This trend we're seeing toward saving and debt reduction, while good on an individual level, can have a disastrous effect on the larger economy if everyone does it," said Jack Ablin, Chief Investment Officer, Harris Private Bank. "Consumption accounts for more than two-thirds of domestic economic activity and, as such, is a major driver to this economic recovery."

*  *  *

Author's Note: I am also convinced that innovation is driving this recovery and not just the innovation of new products. Real innovation involves changing the consumer's purchasing habits. Of course that is linked back again to product innovation.

Thisi s happening both on a B2C and B2B level. Those stories are being posted at www.rodkackley.com and will be compiled in Manufacturing Renaissance, which will be published in September.  --Rod

Ford Sparks Electrified Vehicle Production

Innovation is sparking a manufacturing renaissance. Perfect example:  Ford is adding new green jobs, doubling its battery-testing capabilities and speeding electrified vehicles to market by at least 25 percent, creating even more fuel-efficient choices for customers.

“The good news for customers is that they not only have more choice, but they have faster access to Ford’s latest and greatest in fuel-saving technologies and vehicles,” said Joe Bakaj, Ford vice president of Powertrain Engineering. “This stems directly from our decisions to deliver true power of choice by expanding our dedicated electrified vehicle team and further investing in our facilities.”

Ford is investing $135 million in the design, engineering and production of key components – including advanced battery systems – for its next-generation hybrid-electric vehicles going into production this year.

For example, Ford’s battery-testing capabilities will double by 2013 – to a total of 160 individual battery-test channels. This includes investing in more of the highly specialized machines that can test and simulate everything from power and performance to life and thermal behavior over a complete range of temperatures and possible operating conditions.

Also, Ford is dedicating a 285,000-square-foot research and development lab in Dearborn, Mich., to focus almost entirely on hybrids and electrification. The building formerly known as the Advanced Engineering Center is renamed the Ford Advanced Electrification Center and houses most of the 1,000 engineers working on hybrid and electrification programs.

Ford continues to build its electrified team with 60 engineers hired in the past year and dozens more positions to be filled this year.

Power of choice

Customers benefit from Ford’s investments in two ways – more fuel-efficient vehicle options and even better value.

Ford is reducing the cost of its current hybrid system by 30 percent versus the company’s previous-generation system. Plus, Ford is launching five electrified vehicles this year as part of its power of choice strategy to deliver leading fuel economy across its lineup and triple electrified vehicle production capacity by 2013.

The five electrified vehicles Ford is launchingfall in line with its goal of providing customers with power of choice when it comes to fuel-efficient vehicles. The five electrified vehicles are:

• Focus Electric: Production began late 2011; America’s most fuel-efficient compact with 110 MPGe city; charge time of four hours with the available 240-volt charging station, which is nearly half the time as Nissan Leaf
• C-MAX Hybrid: EPA-certified to deliver 47 mpg highway, 47 mpg city – at least 3 mpg better than Toyota Prius v – and 47 mpg combined with more performance and technology, and all at a $1,300-lower base price
• C-MAX Energi plug-in hybrid: Coming this fall; a projected electric-mode miles per gallon equivalent that is more than three times that of Toyota Prius plug-in hybrid per EPA testing methods; 95 MPGe; total range of 550 miles
• All-new Fusion Hybrid: Coming this fall; 47 mpg expected to beat Toyota Camry Hybrid by 5 mpg highway
• Fusion Energi plug-in hybrid: Will begin production by the end of 2012; aiming to be the most fuel-efficient midsize car in the world

More information about Ford’s electrified vehicle lineup – including press releases, technical specifications and other related material – can be found online here.

“We know what it takes to build world-class hybrids and are building on that expertise,” said Kevin Layden, director, Ford Electrification Programs and Engineering. “We’re continuing to invest so Ford can continue to lead in the delivery of top fuel economy, durability and driving dynamics in our electrified vehicles.”

Author's note:  Last Chance Mile: The Reinvention of an American Community, the story of the transformation of Grand Rapids, Mich. hit #1 on the Abbott Press Book Store Best Seller's List Aug. 14, 2012. 

For more stories on the Manufacturing Renaissance by Rod Kackley,   click here.

New Growth Industry: Medical Device Manufacturing

The growth of medical device manufacturing could have a tremendous impact on West Michigan. I was treated to a first-hand look at the potential offered by that industry during a meeting August 3, 2012 with Keystone Solutions Group Principal Jim Medsker, Keystone Director of Sales and Business Development Robert Nesky and Tiger Lab’s Alison Keutgen.

Keystone, based in Kalamazoo, and Zeeland-based Tiger Lab have a long history of working together in strategic partnerships. The latest effort has resulted in the creation of an oxygen flow diverter, an idea that came to Keystone from the mind of a Zeeland Hospital nurse.

What a team! This is such a great story for a variety of reasons. We have different companies in West Michigan partnering in a very strategic way to innovate, create and market together. The idea came to them from someone outside both companies, and there is one more element to this partnership, the involvement of Spectrum Health.

More on this story will be posted in the days ahead as we explore an industry that has both a strong history and incredible potential for West Michigan, medical device manufacturing.

The Keystone-Tiger Lab story will be explored in greater detail in Manufacturing Renaissance, which will be published in early September.

The medical device industry is no stranger to West Michigan, as is detailed in Last Chance Mile: The Reinvention of an American Community.  We have one of the largest medical device makers in the world in Kalamazoo, Stryker Corp.

But could this community grow? Might this be the next cluster of prosperity in West Michigan? It oculd happen. In fact it is happening.

Here's an excerpt from a visit I made to the West Michigan Science and Technology Initiative on Medical Mile and a conversation I had there with the head of the West Michigan Medical Device Consortium, Don Beery about growth the medical device community:

  It will not be easy. “It will take time. It will take effort. It will take money,” Beery said as he pointed out his office window overlooking Medical Mile. “But we have demonstrated before that we are willing to do that and we know how to do that.”

  He sees the public-private sector partnership model that rebuilt Grand Rapids 20 years ago –I have said it before and I will say it again, this is not the city I moved into in 1990—as being critical to moving the region into the Top Five for medical device manufacturing. “It is night and day in Grand Rapids,” Beery said, “because some folks cared about it and invested their time, energy and money in it. I’m not so sure we can’t pull it off.”

  Venture capital and angel investment money will be important and he said there is never enough of that to go around, although Beery added that he sees the situation improving.

  He also sees great potential for the Grand Rapids community if the area can become a Top Five medical device maker because it is manufacturing. Nothing feeds the family like manufacturing. Factories are capital intensive, land intensive –that means tax revenue—and jobs that are high-skilled, high-wage positions.

  Beery said medical device jobs have an incredible multiplier impact. They create more than 3.5 jobs for every medical device manufacturing position. The initial job pumps money into the economy, big time, with the average annual salary 22-percent higher than the typical job in Michigan.

  However, as much as Medical Mile is about organic growth, creating, developing and monetizing home-cooking, Beery doesn’t think that will be enough. He believes we are going to have to go out and convince one of the big players to move to our town, planting their flag here. “That is the kind of velocity we are going to need to go there (to the Top Five) in a reasonable amount of time.”

The complete interview with Don Beery, along with more on what is happening on Medical Mile and how that cluster of prosperity has transformed Grand Rapids is available in Last Chance Mile: The Reinvention of an American Community available now through www.rodkackley.com

Chevy Drives First Mini-Car Into North America

The Detroit Three fight back. Michigan is seeing the rebirth of manufacturing, led by Chrysler, Ford and General Motors.

As evidence, we submit the 2013 Chevrolet Spark mini car, Chevrolet’s first mini car for the U.S. and Canadian markets, is a sporty four-passenger, five-door hatch. It is designed to excite first-time buyers and city dwellers with its bold styling and colors, affordability, the safety of 10 standard air bags, fuel efficiency and maneuverability.

Spark also is the only car in its segment to provide MyLink Radio – a seven-inch color touch screen radio capable of displaying smartphone-based music, videos, photos and contacts for hands-free calling. MyLink Radio comes with two embedded apps for Pandora internet radio and Stitcher Smart Radio and later, BringGo, an embedded app for full-function GPS navigation, will be available for purchase.

Though compact, Spark offers more passenger and cargo room than other mini-cars such as the Fiat 500, Smartfortwo and the Scion iQ. Equipped with the Ecotec 1.25L four-cylinder engine and five-speed manual transmission, Spark offers competitive EPA-estimated fuel economy of 38 mpg hwy.

Spark is ideal for active city dwellers because it is easy to drive, easy to park and easy to own,” said Chris Perry, Global Chevrolet vice president for marketing. “For these customers, Spark is their key to the city.”

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Meanwhile, General Motors Co. (NYSE: GM)  announced  August 2 that second quarter net income attributable to common stockholders of $1.5 billion, or $0.90 per fully diluted share. In the second quarter a year ago, GM’s net income attributable to common stockholders was $2.5 billion, or $1.54 per fully diluted share.

Net revenue in the second quarter of 2012 was $37.6 billion, compared with $39.4 billion in the second quarter of 2011. The decrease was due almost entirely to the strengthening of the U.S. dollar versus other major currencies. Earnings before interest and tax (EBIT) adjusted was $2.1 billion, compared with $3.0 billion in the second quarter of 2011. Total restructuring expense included in EBIT-adjusted for the second quarter of 2012 was $0.1 billion.

“Our results in North America, our International Operations and at GM Financial were solid but we clearly have more work to do to offset the headwinds we face, especially in regions like Europe and South America,” said GM chairman and CEO Dan Akerson. “Despite the challenging environment, GM has now achieved 10 consecutive quarters of profitability, which is a milestone the company has not achieved in more than a decade.”

More on the reinvention of manufacturing and the rebirth of the Detroit Three will be available in Manufacturing Renaissance due to be published in early September.

The importance of manufacturing to Michigan is also stressed in Last Chance Mile: The Reinvention of an American Community by Rod Kackley, on sale now. More information on this examination of how Grand Rapids, Mich. fought its way out of the Great Recession is available at www.rodkackley.com

Autocam Teams With GVSU To Grow Engineers

Autocam To Provide Full-Tuition Engineering Scholarships At GVSU

Scholarships aimed at attracting top-notch talent to West Michigan

KENTWOOD, Mich., Aug. 2, 2012 /PRNewswire/ -- Autocam Corp., a leading precision manufacturer for both the automotive and medical industries, announced today it will offer three full-tuition scholarships at Grand Valley State University's engineering school.

Autocam, whose global headquarters is in Kentwood, Mich., is a worldwide manufacturer of precision-machine components for all major OEMs and Tier 1 automotive suppliers. Autocam specializes in high precision components for emerging fuel system technologies, including gasoline- and diesel-injection, alternative fuels, cylinder de-activation, and other technologies critical for mandated fuel economy improvements. The company has 14 manufacturing facilities and employs more than 1,500 highly skilled employees in North America, South America, Europe, and Asia. For more information, visit www.autocam.com.

The new Autocam Engineering Scholarship, founded by Autocam President and Grand Valley Board of Trustees member John C. Kennedy, is aimed at attracting top-notch engineering and mathematics students to the West Michigan area, where there is significant need for these skills among local industries.

"Our need for exceptional engineers, coupled with Grand Valley's excellent engineering program, is the reason we want to provide these full-tuition scholarships," Kennedy said, adding that the scholarships will be awarded to two sophomores and one freshman for the 2012-2013 school year.

In the global automotive industry, the demand for precision manufacturing continues to increase, primarily driven by the need for better fuel economy. Autocam plays a critical role in the market for advanced fuel systems, particularly in innovative fueling systems that will dramatically reduce vehicle fuel use.

"Autocam is experiencing rapid growth in our advanced fuel systems technologies, and hiring outstanding engineers is critical to our success," Kennedy said. "By investing in students through this scholarship, we are investing not only in the future of the West Michigan community but in Autocam's future as the premier company for this specialized technology."

Autocam's are the only full-tuition scholarships at Seymour and Esther Padnos College of Engineering and Computing. Candidates for the scholarship must be accepted for admission at GVSU and be full-time students at the College of Engineering and Computing. Students must maintain a cumulative grade point average of 3.0 on a 4.0 scale and declare a major in engineering. Scholarship recipients will be announced in September.

We simply cannot grow too many engineers.  Manufacturing’s biggest problem, both long- and short-term is a lack of talent.

Here’s an excerpt on that from Manufacturing Renaissance a look at the state of one of the most important and most maligned economic sectors in the U.S.

Michigan-based manufacturing companies have invested more than $1 billion in new research and development projects as the sector pulls out of some of the worst years the state’s economy has ever seen.

RoMan Manufacturing is not being left behind. Company President Bob Roth told me the Grand Rapids-based company is expanding its signature line of water- and air-cooled resistance welding transformers into new industry sectors.

“The fundamentals are the same,” Roth explained. “But the nuances and the applications take a lot of development work. It’s like they say about monkeys and men. ‘The difference between them is only two percent, but that is a very important 2 percent.’”

This is all about taking advantage of opportunity. Roth sees growth potential in moving RoMan into industries in which the company has not been participating. It is also about correcting a problem. Roth said because the company was so closely tied to one product category and one industry, it was too vulnerable to cyclical industry and economic swings.

He is putting RoMan’s money where that opportunity is, and to correct that problem. The company’s R&D budget is twice as high as usual. Roth pegged it at approximately 7-percent of sales.

“Quite frankly, 2011 was a record year for the company,” he said. “We have been working on this process for these new industries for the past 3 to 4 years. In 2011 we started to see the early fruits of that effort.”

However, this story is not at its happy ending.

Roth is worried about a lack of engineering talent. “Hiring an engineer today is a monumental task,” he said. “If you are coming out of school with an engineering degree right now, you can almost write your own ticket.”

Finding talent has been a struggle for RoMan. Roth said they are working “diligently” to upgrade talent from within, “but you get to a capacity problem. There are only so many hours in the day and so many hours in the week. It just gets to the point where you need more people. It is a challenge.”

Here’s the big question. Is this lack of engineering talent going to force U.S., manufacturers to send more R&D overseas to find the talent that is needed?

“My personal belief is that when it comes to the overseas issue, we have the tailwinds with us,” answered Roth. “I think you are going to see a lot more work coming back to the U.S. Productivity has never been better. But we have to keep developing the talent.

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Medical device manufacturers have found a new home on the Medical Mile in Grand Rapids, Mich. More on that can be found in Last Chance Mile: The Reinvention of an American Community, available in hard cover, softcover and e-book formats at www.rodkackley.com