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.

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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."

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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