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					                                                            Vo l u m e 1 , N u m b e r 3




MICHIGAN
BUSINESS REPORT
M I C H I G A N   E C O N O M I C   D E V E LO P M E N T   C O R P O R AT I O N




                         Michigan’s Role
                      in Homeland Security
                           Technology




                               also inside…
                Technology               Fueling the Future
              Tri-Corridor:
                  Michigan’s             Building the
          Newest Innovation              Creative Class
                                                                            *
                     News Br efs
Governor Granholm Launches                          expansion of an existing one. It is expected      led a cadre of reporters on a six-day trek
Crusade to Preserve                                 that the 11 projects will create 180 new jobs.    throughout the state, showcasing a sampling
Manufacturing Jobs                                                                                    of Michigan’s great attractions, events,
                                                    Detroit #1 for Knowledge Workers                  restaurants and other destinations ideal for
In a recent speech to automotive industry                                                             summer travel. Research shows that Michigan
                                                    The Detroit metro area is home to the
leaders, Governor Jennifer Granholm                                                                   residents spend about $4 billion while
                                                    most educated workforce in the nation,
introduced a three-step plan to address the                                                           traveling within the state, and an additional
                                                    according to Expansion Management
nation’s dramatic loss of manufacturing jobs.                                                         $4.7 billion traveling elsewhere. It’s hoped that
                                                    magazine. The magazine’s annual High-Value
The plan involves organizing a summit of                                                              the media attention generated by the tour will
                                                    Labor Market Quotient ranks metro areas by
Michigan’s manufacturing industry leaders                                                             help to encourage residents to spend more
                                                    the availability of highly educated workers.
to discuss the challenges facing the industry.                                                        time and money traveling in Michigan.
                                                    The listing compared 331 U.S. cities on a
Granholm would enlist fellow governors in
                                                    number of factors including the percentage of
manufacturing states to join in the fight by                                                          Book-Cadillac to
                                                    science and engineering workers, the number
encouraging them to hold similar meetings                                                             Undergo Renaissance
                                                    of patents issued, the level of R&D spending
within their own states. In the final step of the
                                                    and the number of colleges and universities       In July, Governor Jennifer Granholm
plan, Granholm will gather these governors
                                                    within the metro areas. Oakland, California       joined city of Detroit, Wayne County and
to join her in presenting the issues to national
                                                    and Boston followed Detroit in the ranking.       Kimberly-Clark officials to announce that
leaders in Washington, D.C. Michigan’s
                                                    Michigan had a total of three metros on the       Detroit’s legendary Book-Cadillac, the
manufacturing summit is being planned
                                                    list, with Ann Arbor coming in 23rd and           city’s premier hotel through much of the
for this fall.
                                                    Grand Rapids-Muskegon-Holland 27th.               20th century, is on the road to redevelopment.
Governor’s Message                                                                                    The new Renaissance Book-Cadillac Hotel
                                                    Michigan Ranked #1                                will be an upscale brand of Marriott
to Pfizer Employees:
                                                    in Broadband Policies                             International featuring 483 guest rooms,
Stick Around Michigan
                                                    TechNet, a national organization of               76 high-end apartments and a 186-car
As part of her continuing effort to keep                                                              parking garage. The MEDC played a key role
                                                    more than 150 technology and business
Pfizer workers in Michigan, Governor                                                                  in the redevelopment package by offering a
                                                    executives, ranked Michigan first among the
Granholm recently presented a check for                                                               brownfield Single Business Tax credit.
                                                    states in a new study of state broadband
$10 million to Western Michigan University to
                                                    development policies. The ranking was based
develop the new Biosciences Research and                                                              Michigan Ranks 9th in Small Tech
                                                    on the state’s “…comprehensive strategy to
Commercialization Center to promote life
                                                    bring the benefits of broadband to all its        According to Small Times magazine,
sciences research and commercialization.
                                                    citizens through policies that clear deployment   Michigan ranks 9th in the nation for its
The center will be located at the Southwest
                                                    roadblocks, promote supply and spur               strengths in microsystems. States were
Michigan Innovation Center within the WMU
                                                    demand.” Florida came in a distant second.        judged on research, current level of the
Business Technology and Research Park in
                                                                                                      industry, venture capital, innovation,
Kalamazoo. Additional support in the effort
                                                    Governor’s First “Great Lakes-                    workforce and cost. California and
to keep Pfizer talent was announced in July
                                                    Great Times” Tour a Success                       Massachusetts ranked first and second.
when $2 million in Life Sciences Corridor
                                                    In an effort to encourage Michigan residents      The National Science Foundation estimates
funding was awarded for the creation of 10
                                                    to spend their vacation dollars closer to         that the small tech industry will grow to
new life sciences companies and the
                                                    home, Governor Jennifer Granholm recently         $1 trillion a year by 2015.


  STAFF                                             HOW TO REACH US
  ACTING VICE PRESIDENT                             MICHIGAN ECONOMIC                                 ADVERTISING
  OF PUBLIC AFFAIRS                                 DEVELOPMENT CORPORATION                           Betty S. Young
  JENNIFER OWENS                                    300 N. Washington Square                          313.886.4210
  ACTING DIRECTOR                                   3rd Floor                                         bsyoung@comcast.net
  OF COMMUNICATIONS                                 Lansing, MI 48913
  PAUL KREPPS                                                                                         E-MAIL
                                                    CUSTOMER ASSISTANCE                               medcservices@michigan.org
  MICHIGAN BUSINESS REPORT EDITORS
                                                    517.373.9808
  ROSALEE BILLINGSLEA
  billingslear@michigan.org                                                                           WEB
                                                                                                      www.michigan.org
  SUSAN MC CORMICK
  mccormicks@michigan.org
                                                                                                             Vo l u m e 1 , N u m b e r 4



Inside MICHIGAN BUSINESS REPORT
                                     Report From the Chair . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 2

                                     Michigan Fueling the Future . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 4

                                     Michigan’s Role in Homeland Security Technology . . . . . . . . . . . . . . .Page 6

                                     Michigan Core Communities:
                                     Magnets for the Creative Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 8

                                     Local Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 11

                                     Steve Heintz: Building Michigan’s Creative Class . . . . . . . . . . . . . . . .Page 12

                                     Business and Education Nurture
                                     Michigan’s Future Innovators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 14

                                     Quantum Signal: Tunes Out the Noise, Delivers the Data . . . . . . . .Page 16

                                     Calendar of Events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 18




BOARD OF DIRECTORS
The Michigan Economic Development Corporation, a partnership between the state
and local communities, promotes smart economic growth by developing strategies
and providing services to operate and retain good jobs and a high quality of life.


CHAIR
MATTHEW P. CULLEN              JOHN W. BROWN                          DEWITT J. HENRY                                ROBERT B. JONES
  General Motors                 Stryker Corporation                    Detroit                                        City of Kalamazoo
  Economic Development           Kalamazoo
  and Enterprise Services                                             PAUL HILLEGONDS                                BIRGIT M. KLOHS
  Detroit                      DR. DAVID E. COLE                        Detroit Renaissance                            The Right Place , Inc.
                                 Center for                             Detroit                                        Grand Rapids
VICE CHAIR                       Automotive Research
                                 Ann Arbor                            DAVID C. HOLLISTER                             DR. IRVIN D. REID
PHILIP H. POWER                                                         Michigan Department of                         Wayne State University
  HomeTown                     JOANN CRARY                              Consumer & Industry Services                   Detroit
  Communications Network         Saginaw Future Inc.                    Lansing
  Ann Arbor                      Saginaw                                                                             S. MARTIN TAYLOR
                                                                      GEORGE W. JACKSON, JR.                            DTE Energy Company
BOARD MEMBERS                  STEVEN K. HAMP                           Detroit Economic                                Detroit
RICHARD E. BLOUSE, JR.           The Henry Ford                         Growth Corporation
                                 Dearborn                               Detroit                                      GARY TORGOW
  Detroit Regional Chamber                                                                                             The Sterling Group
  Detroit                      HAYDEN H. HARRIS                       MICHAEL J. JANDERNOA                             Detroit
FACUNDO DEL VALLE BRAVO          EDF Ventures                           Perrigo Company
                                                                                                                     PETER S. WALTERS
  Uni Boring Co., Inc.           Ann Arbor                              Allegan
                                                                                                                       Guardian Industries Corp.
  Howell                                                                                                               Auburn Hills
2            Report From the Chair


Technology Tri-Corridor:
Michigan’s Newest Innovation
                                          Total funding for the Tri-Corridor in      the time to rest on our laurels. The
                                          fiscal year 2004 will be $25 million.      industry is changing rapidly. Emerging
                                          Of that amount, $15 million is set aside   technologies like the hydrogen fuel
                                          for life sciences research and the         cell could threaten our dominance in
                                          remaining $10 million will be used         the industry if we don’t take steps to
                                          to fund the development of the             capitalize on its potential.
                                          advanced automotive manufacturing
                                                                                     This industry already has promising
                                          and homeland security industries.
                                                                                     roots planted in Michigan. The
                                          Some have argued that sharing the          Big Three automakers have been
                                          funding between the three industries       researching fuel cell propulsion for
                                          will diffuse the momentum that the         years. Kettering University is making
    Matthew Cullen                        Life Sciences Corridor has gained.         groundbreaking discoveries at its
    Chair, Michigan Economic              On the contrary, funding the Tri-          Center for Fuel Cell Systems and
    Development Corporation
    Executive Committee
                                          Corridor promotes a natural synergy        Powertrain Integration in Flint
                                          that already exists between these          (see page 4). The university is
                                          industries, builds on Michigan’s           also developing a standardized
                                          strengths and ensures that our             curriculum to help prepare the
                                          economy will continue to diversify.        workforce required to support
                                                                                     Michigan’s future fuel cell industry.

I   nnovation is one of Michigan’s
     greatest legacies. Fiscal
challenges have inspired innovation
                                          Opportunities for crossover
                                          research abound within the Tri-
                                          Corridor. Many companies are
                                                                                     The homeland security industry is
                                                                                     also quietly gaining a presence here.
in economic development initiatives       already developing products that           Michigan has been home to the
to help the state’s economy grow out      have applications in all three of the      National Automotive Center, part of
of its current downturn. The Michigan     Corridor industries (see Quantum           the Tank-Automotive and Armaments
Technology Tri-Corridor is the next       Signal, page 16). More than $20 million    Command (TACOM), since 1992.
step in our legacy of economic            in life sciences funds have already        The center has helped to develop
innovation.                               been awarded for homeland security         some of the most advanced military
                                          applications to companies that make        technology as well as research in the
Governor Granholm proposed the            products to counter bio-terrorism.         practical use of hybrid vehicles for
Technology Tri-Corridor as a way          Leveraging grant money to support          military applications. (See page 6)
to build on the early success of the      crossover research is the best
Michigan Life Sciences Corridor.                                                     The Life Sciences Corridor has
                                          value for the state’s dollar, enabling
The expanded Tri-Corridor aims                                                       been successful because of strong
                                          universities, industries, nonprofits
to spur development of emerging                                                      private-public partnerships. The
                                          and employees to combine resources
technologies in three industry                                                       Tri-Corridor will take the same
                                          in researching, developing and
sectors: advanced automotive                                                         formula for success and expand it to
                                          commercializing innovative products.
technologies, homeland security                                                      industries that are ripe for innovation
and life sciences. Bringing these         Michigan already has its foot firmly       and fast growth. The Technology
three industries together within this     in the door of all of the industries       Tri-Corridor is still in its developing
initiative will help broaden Michigan’s   within the Tri-Corridor. Our state is      stages, yet has the potential to keep
economic development scope and            the global leader in producing the         Michigan at the forefront of the
make better use of economic               most advanced, high-tech product in        high-tech revolution.
development tools and funding.            the world: the automobile. This is not
4


      Michigan’s Technology
 Tri-Corridor incorporates
       advanced automotive
     technologies as part of
           its three-pronged
      approach to economic
          development. Few
      technologies are more
          advanced than the
          hydrogen fuel cell.
       The development and
        commercialization of
          hydrogen fuel cell
    technology has become
         a major priority for
       government, industry
                                                    Michigan Fuelin
               and the public.
These fuel cells generate power by         but they are not alone. Universities,    moving parts, and could potentially
converting hydrogen into electricity.      research institutions and suppliers      make many Michigan manufacturing
Unlike conventional internal               are all engaged in accelerated           operations obsolete. “There are over
combustion engines, fuel cells do not      fuel cell development.                   20,000 jobs in Flint alone devoted
emit harmful greenhouse gases or                                                    to internal combustion engine
                                           Kettering University in Flint, named
smog-inducing particulates. The only                                                development and if you woke up
                                           for auto pioneer Charles Kettering, is
byproduct of a hydrogen fuel cell is                                                tomorrow morning and the internal
                                           one such partner pushing for fuel cell
pure water. The benefits to society                                                 combustion engine was gone and
                                           commercialization through its new
are great, but so are the risks. Massive                                            we did not have a backup…then Flint
                                           Center for Fuel Cell Systems and
amounts of financial and human                                                      and Michigan would be in trouble.”
                                           Powertrain Integration. The center
resources will be needed for fuel                                                    It could mean job losses unless
                                           will be housed within Kettering’s
cell and infrastructure research,                                                   Michigan is prepared to take
                                           new $42 million, 120,000 square foot
development and deployment for fuel                                                 advantage of the fuel cell economy.
                                           Mechanical Engineering and
cells to be a successful alternative to
                                           Chemistry building.                      With that in mind, research institutions
conventional power sources.
                                                                                    such as Kettering will be the focus
                                           What do fuel cells mean for Michigan?
The Big Three automakers have                                                       of intense fuel cell testing and
                                           “If fuel cells become a reality, Flint
already invested billions in automotive                                             training, as well as standards
                                           and Michigan stand to lose a lot,”
and stationary fuel cell research,                                                  and infrastructure development.
                                           said Dr. K. J. Berry, director of the
development and marketing,                                                          One of the challenges of making
                                           center. Fuel cells don’t have any
                                                                                    fuel cells commercially viable is a
                                                                     Michigan Business Report                                   5


                                                                                      Right now one of REB’s major clients
                                                                                      is the National Aeronautics and Space
                                                                                      Administration, though REB sees huge
                                                                                      growth potential for fuel cells within
                                                                                      the U.S. military. “The first planes were
                                                                                      in the military, and they were really
                                                                                      expensive, and they didn’t do a whole
                                                                                      lot but they really needed them,”
                                                                                      said Robert E. Buxbaum, founder and
                                                                                      president of REB. “Then people said,
                                                                                      ‘gee, these are awfully cool, maybe
                                                                                      I can use them for hauling my mail
                                                                                      around’ and some other highly valued
                                                                                      products, and bit by bit by bit, they’re
                                                                                      catching on. Motorcycles were the
                                                                                      same way. It catches on,” said
                                                                                      Buxbaum. The relatively lightweight
                                                                                      and quiet operation of fuel cells
                                                                                      makes them particularly attractive
                                                                                      to the military. All of this could


ing the Future                                                                        eventually cascade down into
                                                                                      widespread consumer use.

                                                                                      REB specializes in manufacturing the
                                                                                      hydrogen generators that are part
                                                                                      of each fuel cell. The company does
                                                                                      some of the manufacturing work in its
  lack of standardization. “Training of      programs offered through institutions    Ferndale location and farms the rest
  engineers and technicians, codes           such as Kettering will ensure that       out, primarily to contractors in metro
  and standards development and              Michigan builds up a talented cadre of   Detroit. The choice of where to
  research and testing are all part          engineers and technicians to continue    locate was obvious. “As far as making
  of the Kettering vision,” said Berry.      research and development into this       these things, Michigan is a great place
  “The Society of Automotive Engineers       promising technology.                    to make anything,” said Buxbaum.
  will work with Kettering on the issues
                                             Fuel cell research and development       “Fuel cells have the potential to be
  of codes and standards.”
                                             is not the exclusive domain of the       bigger than internal combustion
  Part of the center’s mission is to train   Big Three and the educational            engines actually, because you’re
  tomorrow’s engineers as well as the        community. In metro Detroit alone        directly turning fuel into electricity.
  community at large in cutting-edge         there are 100 companies, including       Instead of turning fuel into motion
  fuel cell technologies. Experts at         many small firms, working on fuel        plus noise and pollution, you’re
  Kettering are busy developing a            cells. It’s going to take a qualified    turning it into electricity,” he said.
  fuel cell curriculum consisting of         network of suppliers who can meet
  bachelor’s, master’s and continuing        the demands of Tier One and OEM          With the research and development
  education programs to ensure that          (original equipment manufacturer)        that Michigan already has under its
  Michigan’s workforce is ready to meet      stationary and automotive fuel cell      belt, the state is poised to be a leader
  the demand for technical expertise         producers to build this industry.        in this emerging technology that
  when fuel cells go mainstream. In the      One such company is Ferndale-based       promises to revolutionize automotive
  meantime, degree and certificate           REB Research and Consulting.             manufacturing.
6

Michigan’s Role   D     uring these uncertain times
                        when terrorism, war, sniper

in Homeland       attacks and other issues of national
                  security and safety permeate the
                  news headlines, Michigan is on

Security          the forefront of technologies
                  that offer solutions.

                  The Future Has Arrived
Technology        Movies and novels tell us about
                  vehicles equipped with state-of-the-
                  art technologies, transforming them
                  into “weapons on wheels.” These
                  vehicles hold missile launchers,
                  robots, grenades, high-powered
                  ammunition, pepper spray, smoke
                  screens and much more.

                  At the National Automotive Center
                  (NAC) — part of the Tank-automotive
                  and Armaments Command (TACOM)
                  in Warren – these types of
                  technologies are no longer just
                  images on the big screen or in
                  books. They are reality.

                  Take for example NAC’s SmarTrucks I
                  and II. Both are innovative, multi-
                  purpose vehicles built for the war
                  on terrorism and homeland security
                  missions. SmarTruck I operates
                  covertly, allowing for communica-
                  tions and protection. SmarTruck II,
                  on the other hand, is meant to be
                  seen. It is built on a modified
                  Chevrolet Silverado platform fitted
                  with modules of counterterrorism
                  equipment that can be swapped out
                  for other non-terrorism modules
                  when needed. Instead of the normal
                  two axles it has three, enabling it
                  to carry up to a five-ton payload.
                  SmarTruck II can carry a sophisticated
                  communications system for
                  surveillance and water purification
                  systems for disaster relief missions.

                  “One of the things that’s needed in a
                  crisis situation is communications,”
                                                                          Michigan Business Report                                7

explained Dennis Wend, executive              and electrical power. With the help of        auxiliary power unit would take care
director of NAC. “So we have five             advanced fuel cell technologies, NAC          of all of the electrical requirements
different radios in the vehicle, as well      has created vehicles that generate            on the car that are currently being
as a wireless Internet system, satellite      electricity with plug-in power.               powered by the engine. This includes
phone and other communications                                                              air conditioning, water and oil
                                              “We look at the fuel cell as an
services. Also, if you have a crisis,                                                       pumps, power windows, fans and
                                              auxiliary power unit, so that we
many times you’re worried about the                                                         radiators. When the engine is idling,
                                              can have plug-in electricity with no
water system. We can actually put a                                                         the fuel cell will be able to make
                                              noise and no pollution,” Wend said.
hose into a mud puddle and make                                                             electricity for a variety of uses.
                                              “If we’re utilizing it in a small vehicle,
that water drinkable in minutes.”
                                              it gives us a stealth capability on            Wend says General Motors and
Established in 1992, the National             the battlefield. You can sneak up              Chrysler have plans to sell mild
Automotive Center                                                                                                hybrid vehicles
serves as a catalyst                                                                                             to the public
linking industry,                                                                                                next year. The
academia and                                                                                                     GM Silverado and
government agencies                                                                                              Dodge Ram pickup
in the development and                                                                                           (diesel) will have
exchange of automotive                                                                                           plug-in power.
technologies. Its goal is                                                                                        The trucks are a
to be at the forefront                                                                                           result of an
of the research and                                                                                              NAC-originated
development of these                                                                                             research and
technologies.                                                                                                    development
                                                                                                                 program called the
“The purpose of
                                                                                                                 Commercial-based
the NAC is to take
                                                                                                                 Tactical Truck.
technology that was
                                                                                                                 The goal of
either developed in
                                                                                                                 the program
the Army and bring it
                                                                                                                 is to create a
back into the auto           Hybrid military vehicles offer flexible power to meet changing needs in
                             the battlefield. The hauling power of an internal combustion engine is              reasonably priced
industry… or vice
                             complemented by the versatility of a hydrogen fuel cell to power                    vehicle that saves
versa — take the
                             communications and auxiliary operations.                                            fuel and has plug-
technology that was out
                                                                                                                 in power capability.
there and bring it back into the
                                                on your enemy a lot better, and you
military,” Wend said. “Basically                                                             Better Fuel Economy
                                                can run a lot of communications and
we look for needs in both the
                                                transmitting of data and sensors             Among the NAC’s major projects is
commercial world and military in
                                                that way.”                                   the 21st Century Truck Initiative. It’s a
a research and development area.
                                                                                             partnership with the Department of
By investing in those kinds of                  NAC is working with Delphi, DTE
                                                                                             Defense (DOD), Department of
technologies, we hope to get one                Energy and other companies to
                                                                                             Energy, Environmental Protection
product to work for both of us.”                develop auxiliary power unit fuel
                                                                                             Agency and Department of
                                                cells that could make a “mild hybrid”
Generating Power                                                                             Transportation to find ways to
                                                vehicle. One using an extremely
                                                                                             improve fuel economy on trucks —
NAC’s work with fuel cells is an                efficient, direct injection diesel
                                                                                             from sport utility vehicles to
example of technology that crosses              engine supplemented by a small
                                                                                             18-wheelers. Additional goals include
over into everyday life. During a               electric motor as a workable, low-
                                                                                             reducing the emissions of trucks and
military conflict, the onset of nightfall       emissions drivetrain. By integrating
necessitates an abundance of lighting           an engine with the fuel cell, the                              continued on page 20
8

    Michigan Core Communities

Magnets for the Creative Class



V     ibrant downtowns are attractive
      to young professionals. Michigan
is home to some of the finest centers
                                           young residents and workers from
                                           suburbia and exurbia back into core
                                           communities. It’s working, and it’s a
                                                                                   historic character of the surrounding
                                                                                   blocks. “We believe that public
                                                                                   projects don’t need to be dowdy,”
of higher education in the nation          phenomenon that core community          said Marquette City Manager Gerald
producing some of the brightest            leaders across the state may want       R. Peterson. As a result, even parking
minds in the arts and sciences.            to emulate.                             garages have historic accents and
Yet, a recent study found the state                                                make use of historic materials, such as
doesn’t rank well in attracting young      Historic Preservation,                  brick. Peterson believes that creating
people. If Michigan can’t attract          Natural Beauty a                        vibrant cities will help keep our
high-caliber talent into the state after   Winning Formula Up North                intellectual capital from fleeing the
graduation time, the economy could         Up on the shores of Lake Superior,      state. Retaining downtown
suffer. It’s all about retaining what      civic leaders in Marquette have found   Marquette’s unique sense of place
economist Richard Florida calls “the       their groove. By focusing on what       helps keep the central business
creative class,” a “fast-growing, highly   makes their city unique, leaders have   district vibrant. “Historic preservation
educated and well-paid segment of          found a way to make Marquette a         definitely plays a role,” he said.
the work force on whose efforts            more attractive place in which to
                                                                                   Another factor that makes Marquette
corporate profits and economic             live and work.
                                                                                   one-of-a-kind is its stunning lakeside
growth increasingly depend.”
                                           Part of what makes Marquette unique     location. The city already has six miles
Several core communities are taking        is its plethora of pre-20th century     of beach access in place, but there’s
steps to stop the potential brain drain.   architecture. When the city builds a    more on the way. City leaders plan
Three Michigan cities in particular        public project, designers and           on redeveloping former industrial
have displayed the ability to woo          developers are sensitive to the         portions of the Lake Superior
                                                                    Michigan Business Report                              9




                Cities understand that
                     vibrant eating and
               drinking establishments
                and cultural programs
            appealing to young families
                are critical elements in
                attracting and keeping
                    the ‘creative class’.




coast for public access, and then           executive director of the Downtown       rental rates, a solid retail and
reconnecting the reclaimed shoreline        Development Authority (DDA). “It         entertainment district, and an
to the downtown area via pedestrian-        doesn’t feel pretentious in any way.     engaging arts community all
friendly trails and bike paths.             You can be yourself. You can go into     contribute to a vibrant urban scene
                                            a nice restaurant and be wearing         that tends to attract and retain bright
“We’re trying to differentiate
                                            something very casual, and I think we    young minds.
ourselves,” said Peterson. “And
                                            also do things in many other ways to
the public here in Marquette has                                                     Ferndale hopes to improve its
                                            make a diverse group of people feel
responded in a positive way.”                                                        downtown district, made up primarily
                                            welcome here.”
                                                                                     of 1920s and 1940s low-rise art deco
Diverse Nightlife, Shopping                 Attracting a diverse mix of creative     storefronts, by creating a dense
Lure Creative Class                         residents is easier when you are         tapestry of mixed-use buildings. “We
to Ferndale                                 known for a distinctive business         really feel that we need to build up
Just north of Detroit, Ferndale has         environment. “You want a diverse         our downtown, densify it and allow
found a niche by offering specialty         business mix but you also want a         for living space and more office
retail and dining by day, and serving       diverse entrepreneur mix,” she said.     space,” said Sheppard-Decius. "You
up hot nightlife and entertainment by       “People that have been here, they’re     need bodies down there. You need
night to the young and young at heart.      reaching out to their own people and     them down there during the day, you
Drawing people from throughout              then they turn them on to me and I       need them down there throughout
southeast Michigan, downtown                think that’s one of the things that we   the night, and once we densify some
Ferndale’s casual atmosphere appeals        do kind of more internally that people   other areas of downtown that maybe
to many a Michiganian. “Ferndale is         just don’t see.” A good mix of housing   aren’t as heavily traveled during the
real,” said Cristina Sheppard-Decius,       stock with varying price points and      continued on page 10
10
 Coming Back to Michigan’s Main Streets
  The Michigan Economic Development Corporation has             application), Marshall and Portland.
  many downtown development tools designed to draw
                                                                Since 1980, the National Main Street Center has
  the creative class and bring jobs and investment back
                                                                worked with communities across the nation to
  to Michigan’s downtowns. Now, a recently formed
                                                                revitalize their historic or traditional downtown
  partnership between the MEDC and the National Trust
                                                                commercial areas. Originally developed as an aid to
  for Historic Preservation’s National
                                                                                    historic preservation and to saving
  Main Street Center offers a new
                                                                                    the fabric of American communities,
  innovative downtown development
                                                                                    the program has evolved into a
  tool that is now available to Michigan
                                                                                    powerful economic development
  communities large and small.
                                                                                    tool.
  The Michigan Main Street program is a
                                                                                  Michigan is now one of 39 states to
  highly successful year-round training
                                                                                  administer the program, which has
  course in proven methods of
                                                                                  had successful results in communities
  downtown revitalization that includes
                                                                                  throughout the country. Since the
  instruction in successful design,
                                                                                  National Main Street Center’s work
  organization, promotion and
                                                                began, downtowns have realized an average of $39.96
  economic restructuring methods.
                                                                of new private investment in Main Street communities
  The MEDC launched a competitive application process           for every dollar of Main Street money spent.
  in February with enough available funding to administer
                                                                The MEDC plans to continue sponsoring annual Main
  the training to four communities. After 23 communities
                                                                Street competitions so that more communities may take
  submitted notices of intent, 10 were invited to submit
                                                                advantage of the program. The next competitive round
  full applications. The list was finally whittled down to
                                                                will begin in the late fall of 2003.
  Boyne City, Calumet/Calumet Township (joint



Magnets for the                           Kalamazoo embraces the arts as few          Events like these make downtown
                                          cities do. “We have a huge following        Kalamazoo the focal point of the
Creative Class                            and support of the various arts in this     entire region. “This downtown
                                          community,” said Kenneth Nacci,             belongs to the community,” said Nacci.
continued from page 9
                                          president of Downtown Kalamazoo,            “It is Portage’s downtown, it is
                                          Inc. Downtown Kalamazoo cooked up           Oshtemo Township’s downtown, it is
evenings, I think downtown Ferndale
                                          a series of events that bring the art       Kalamazoo County’s downtown.
will be even more lively."
                                          community and the business                  When September 11 occurred, people
Commitment to Art,                        community together. At monthly Art          gathered in downtown Kalamazoo to
Regional Cooperation                      Hops, downtown businesses open              mourn.” By thinking and acting
Bring People to K-Zoo                     their doors to area artists who host        regionally, the community is able to
                                          public exhibitions of their work. “It’s a   retain some of its creative
Kalamazoo has followed a path that,
                                          huge success. Thousands of people           homegrown thinkers and
like Marquette and Ferndale,
                                          come downtown, walking around in            entrepreneurs.
capitalizes on the city’s inherent
                                          the evening hours,” said Nacci. “It
strengths to help bring about                                                         Building a cultural capital takes
                                          becomes a huge party… It’s a key
downtown development and                                                              creativity and regional thinking.
                                          element that the creative class likes to
economic revitalization. By renovating                                                These Michigan core communities
                                          have.” Once every quarter,
19th century warehouses into swanky                                                   are working hard to strengthen the
                                          downtown K-Zoo retailers get in on
lofts, K-Zoo is fast becoming the                                                     urban fabric of the state and keep
                                          the act, hosting as many as 40 art
“hipness hub” of southwest Michigan.                                                  tomorrow’s entrepreneurs firmly
                                          exhibitions.
                                                                                      rooted in Michigan.
                                                                    Michigan Business Report                            11

                                           Local Partners Corner
                                           The MEDC was formed by an alliance between state
                                           government and local economic development partners.
                                           The Local Partners Corner features news of cooperative
                                           efforts between the MEDC, business and its local partners.

Woodward Heritage Team Driving Regional Success
Woodward Avenue (M-1) is a driving         The profile, “Woodward Avenue: The       developing resources that mutually -
force of economic activity throughout      Byway for Your Business,” provides       benefit the needs of several urban,
the state and southeast region.            general information on the area as a     mature communities,” said Heather
Recognized as a Michigan Heritage          business destination and highlights      Carmona, WA3 executive director.
Route and the state’s only American        available economic development
Byway, Woodward spans 27 miles             resources. The communities of Berkley,   The city of Ferndale plans to market the
from the Detroit River to Pontiac.         Birmingham, Bloomfield Township,         profile as part of its business recruitment
                                           Detroit, Ferndale, Highland Park,        efforts. “We’re able to better package
                    In 1996, the           Huntington Woods, Pleasant Ridge,        our community with the MEDC as a
                    Woodward Avenue        Pontiac and Royal Oak took part in       partner,” said Cristina Sheppard-
                    Action Association     producing the profile, along with        Decius, Ferndale downtown manager.
                    (WA3) was formed       representatives from Oakland and
                    as a nonprofit                                                  To obtain a copy of the profile or to join
                                           Wayne counties.                          the WA3 or Woodward Heritage Team
                    community and
                    economic               “Working with the MEDC has helped        efforts, contact 248-399-3933 or go to
                    development            strengthen the statewide relevance of    www.woodwardavenue.org. For further
                    organization           Woodward and the importance of           information on America’s Byways, click
representing seven communities along                                                on www.byways.org.
the Woodward Avenue Corridor in
Oakland County. The association’s
goals included unifying and improving
the visual, economic, functional and
historic character of the corridor.

Three years later, WA3 evolved into the
Woodward Heritage Team, an extended
partnership among Woodward’s 10 local
governments and two counties to obtain
a heritage route designation for the
entire corridor. The designation
recognizes its historical and cultural
significance, offering opportunities for
economic development through funding,
preservation, promotion and tourism.

As an MEDC corporate partner, WA3
strives to keep Woodward Avenue at
the forefront of the state’s economic
development initiatives. Complementing
the state’s economic development
efforts, the MEDC’s Community
Assistance Team worked with WA3
and the Woodward Heritage Team to
compile an economic development
profile of the corridor.
12
                                                                   Michigan Business Report                           13
He’s not your father’s entrepreneur.     care providers and insurers securely        like to do. It comes down to bars
For one thing, Steven Heintz started     over the Net. Opportunity knocked           and clubs and social scenes. These
Adia Information Management Corp.        on two other occasions with                 are single people, who always have
when he was still an undergraduate       NetPOS, a Web-based restaurant              a lot to do with it. So the local people
at the University of Michigan with       point-of-sale system, and                   need to buy into this too. When new
$10,000 and no outside financing.        ManagePoint, a powerful Web-based           developments want to go into a town,
After working for Microsoft in           customer relationship management            you know they need to approve
Redmond, Washington, Heintz              (CRM) toolkit.                              these. They need to be conscious
opted to establish his company                                                       of this. These are really talented
in Ann Arbor in 1997. Since then,
                                         Heintz: “We really stumbled into the        people that we want to keep.”
                                         three markets. Managed health care
the Detroit Regional Chamber has
                                         was never something that I sat around       Never forgetting his roots, the
called him one of the “100 Emerging
                                         as an undergraduate trying to figure        young CEO strives to give back
Leaders of Southeast Michigan”
                                         out how to conquer. It’s really been        to the entrepreneurial community.
and Crain’s Detroit Business named
                                         opportunities that came across that         In 2002, he started Adia’s Aspiring
him a “Top Technology Leader of
                                         we were able to capitalize on…              Entrepreneur Program to incubate
Michigan.” In 2003 he was named
“Young Entrepreneur of the Year”         Heintz realizes that Michigan is            start-up tech companies. The
at the Michigan IT Summit. This state    putting an emphasis on urban areas,         program provides office space
has been a pretty good home for          but that renewed commitment has             and infrastructure to promising
Adia, but as CEO, he could have          to cascade down the local level if          young entrepreneurs.
gone anywhere.                           the state is going to be successful


     A seasoned CEO at 25, Steven Heintz has six years of experience
     in running a technology business. He offers a unique perspective
           on the challenges that Michigan companies face in trying
                            to attract young knowledge workers.


Heintz: “I started the company as        in creating vibrant, attractive cities.     So what keeps this accomplished
an undergraduate at the University       He cited the theories of economist          veteran of the corporate world from
of Michigan, so that kind of made        Richard Florida, author of The Rise         going into retirement at the ripe
Ann Arbor a good default choice.         of the Creative Class, who says that        old age of 25? It’s the freedom and
Although right before I started the      “members of the creative class come         flexibility of being his own boss.
company, I actually went out to          in all shapes, sizes, colors and
                                                                                     Heintz: “With Adia, I’m the
Redmond, Washington and worked           lifestyles; and to be truly successful,
                                                                                     only person I have to answer to…
at Microsoft for about six months.       cities and regions have to offer
                                                                                     When you have a lot of people
It was kind of an internship-type        something for them all.”
                                                                                     you have to get consensus on, it
program that the school had done.
                                         Heintz: “Attention is actually being        sometimes takes a long time and
I really liked the Washington area,
                                         brought to making the cities cooler to      you can miss opportunities
but I came back here to really finish
                                         live in. Really trying to retain this age   because of that process.”
the degree and it was just sort of a
                                         group of people, and the fact that
natural kind of progression, starting                                                To find out more about Steven
                                         there’s attention being spent on that,
the company. That’s what really made                                                 Heintz and Adia Information
                                         I really like. But I think that’s got to
us start here in Ann Arbor.”                                                         Management Corp., visit
                                         come down to the local levels. It all
                                                                                     http://www.adiaim.com.
As an application service provider       comes down to, at least for a lot of
(ASP), Adia hit pay dirt with CareNet,   the young people I see leaving, it all
which connects managed health            comes down to social things that they
14




Education is the key to maintaining Michigan’s
top-notch workforce. Governor Jennifer
Granholm has given top priority to the education of
Michigan’s young people with the goal of securing a
highly qualified workforce for the future. Many Michigan
businesses are working toward this goal by introducing
younger students to some of the jobs available in the newest
scientific and technical fields, helping them to answer
the question: “What do I want to be when I grow up?”

At the General Motors Detroit/Hamtramck Assembly Center, over
3,100 members of United Auto Workers Local 22 build Buick LeSabres
and Cadillac DeVilles and Sevilles. It is the most productive luxury car
factory in North America, according to the 2003 Harbour Report on
automotive plant efficiency. Skilled technical workers are essential in
achieving world-class quality levels, but unfortunately manufacturing
sometimes suffers from an image problem. That makes recruitment difficult.
National Association of Manufacturers Chairman Archie Dunham says
manufacturing is “the Rodney Dangerfield of career choices,” a reference
to the comedian who complains of getting no respect. Manufacturing
plants are thought of as dirty and dangerous, the work boring.
                                                                    Michigan Business Report                          15
The UAW and GM have teamed up              Hamtramck’s manufacturing costs           environmental sciences as well as
to dispel those misconceptions and         significantly.                            technology. Students learn about life
educate tomorrow’s workforce                                                         cycles by studying the growth and
                                           Is the partnership making a difference?
about advanced manufacturing by                                                      development of plants. They learn
                                           You bet. According to Shikira Ward, a
forming the Detroit Manufacturing                                                    about mass and gravity by balancing
                                           2003 graduate, “DMP touched on
Partnership (DMP).                                                                   objects to determine the center of
                                           every aspect of manufacturing and
                                                                                     gravity and adding weights to stabilize
Based on the award-winning Lansing         helped me figure out what I was good
                                                                                     the object. Other examples of
Area Manufacturing Partnership, the        at and how I could pursue my goals.”
                                                                                     curriculum in use by the NSRC include
DMP is a partnership between the           The students win, but so does
                                                                                     studying light bulbs to determine how
Detroit/Hamtramck Assembly Center,         General Motors. Dale Matthews,
                                                                                     electrical circuits function. Students
the UAW-GM Center for Human                plant personnel manager at Detroit/
                                                                                     then learn about wiring diagrams and
Resources (CHR) and the Detroit            Hamtramck, said: “The students gain
                                                                                     then wire a cardboard box “house.”
Public Schools. The partnership brings     a much better idea of the variety of
30 students into the plant each year       jobs available and an understanding       “We feel strongly that [it ] is the best
to instill the knowledge and high-tech     of what it takes to succeed in this       way to teach science and to keep
expertise of today’s lean, just-in-time    area in terms of education, personal      students interested and stimulated
manufacturing. “The primary objective      habits and work ethic.”                   in science,” said Sandra Dust, Dow’s
is to get students acclimated to what it                                             manager for education initiatives.
                                           The Detroit Manufacturing Partnership,
is to be involved in the manufacturing                                               “It helps develop critical thinking.”
                                           now in its fourth year, has graduated
process and to see how business                                                      Dow offers broad-based educational
                                           72 students since its inception.
works,” said Frank Moultrie, UAW                                                     opportunities to a wide array of
Local 22’s plant chairman at               Meanwhile, in mid-Michigan,               students. Even if they never come
Detroit/Hamtramck. “When you talk          Dow Chemical is taking a different        to work for Dow, Dust said that
to people that have never been inside      approach to building tomorrow’s           Hands-On Science students are more
a plant they have all these crazy ideas    skilled workforce. As a world leader      likely to become better-educated
of what it’s like,” said Moultrie. “It’s   in chemical research, development         citizens and consumers.
a place of business... perception is       and production, Dow needs a steady
                                                                                     Building science literacy among
usually different than reality for         stream of bright, qualified scientists
                                                                                     students is one part of what Dow is
folks who aren’t familiar with the         and engineers.
                                                                                     doing, but at the same time the
manufacturing process.”
                                           An innovative program called              company is working to improve
Students study a 500-hour curriculum       Hands-On Science is one means             science instruction by supercharging
on manufacturing developed by the          by which Dow hopes to build a cadre       the curriculum. Dow is a sponsor of
UAW-GM CHR, GM’s Lansing-area              of future scientists by improving         The Next Step Institute, a national
manufacturing plants and the Ingham        science, math and technological           program offering best practices and
Intermediate School District. The          education. With curriculum developed      current research on K-8 science
course incorporates nationally             by the National Science Resources         education for teachers. Conducted by
recognized employability, industry         Center (NSRC), a joint venture of         the Association of Science Materials
and academic skills necessary for          the Smithsonian Institution and the       Centers and the NSRC, Next Step
success in manufacturing. One of the       National Academy of the Sciences,         uses hands-on training for teachers,
unique aspects of the partnership’s        Hands-On Science brings state-of-         offering continuous improvement for
approach is its capstone experience,       the-art learning to K-12 schools          our nation’s science educators.
in which students team up to tackle        across the country with a special
                                                                                     With a clear focus on the future, GM
real-life challenges at the plant, then    focus on schools in Bay City,
                                                                                     and Dow are helping students learn
make recommendations to educators          Saginaw and Midland. The Dow
                                                                                     what they can be when they grow up,
and plant personnel during a formal        Foundation is one of a handful of
                                                                                     helping to assure that they have the
presentation. One team in the class        major sponsors of the program.
                                                                                     skills and background necessary to
of 2003 developed a solution that
                                           Hands-On Science teaches students         keep Michigan in the forefront of
could potentially reduce Detroit/
                                           the basics of life, physical and          science and advanced manufacturing.
  16




                               E     verywhere we turn these days,
                                      electronic data and signals
                               bombard us. Computers, cell phones
                               and DVDs are sending out temperature
                               readings, stock quotes, entertainment
                               and much more. For these signals and
                               data to be useful in our lives, we must
                               be able to decipher the information,
                               despite any corruption or
                               interference in the transmission.

                               Quantum Signal of Ann Arbor cleans
                               up the sounds, signals and data we
                               come into contact with every day
                               and is now unlocking the door to
                               next-generation technology.

                               Processing Signals
                               Founded in 1999, Quantum is an
Mitchell Rohde                 engineering consulting firm
co-founder of Quantum Signal   specializing in advanced signal
                               processing. In other words, it uses
                               mathematical and statistical modeling
                               techniques to extract important
                               information from "noisy" data. The
                               technology evolved from algorithms
                                                                       Michigan Business Report                      17




and tools developed in the fields of       demand. Biometrics is an automated        physical variations and “noise” that
engineering, statistics, physics and       method of recognizing a person            occur in real world situations, such
mathematics. Company co-founder            based on physical or behavioral           as beards, eyeglasses, facial camera
Mitchell M. Rohde, Ph.D., explains         characteristics. “Things like face        angles and poor cell phone
advanced signal processing this way:       recognition, speaker verification and     reception.
“Let’s say you have a lot of data, such    fingerprint recognition are obviously
as the history of stock market prices,     becoming more and more important,”        Advanced Automotive
an acceleration signal measured off        Rohde said. “The signal processing        Manufacturing
a car, or a heart signal from an EKG.      we do here is useful for doing things     Signal processing techniques have
What people really want to know are        like verifying someone’s identity         proven valuable in the manufacturing,
certain things about them. For instance,   based on how their face looks.”           product design and engineering
whether there’s a problem with their                                                 processes. They can enhance
                                           Federal, state and local governments,
heart. Whether the stock is going to                                                 automobile designs by enabling
                                           as well as the military and commercial
go up or down. Or whether the car is                                                 features such as noise/vibration
                                           companies, can find many applications
entering a crash situation in which you                                              detection and anti-lock braking
                                           for biometrics. The technologies can
need to deploy the airbag. It’s getting                                              systems. Algorithms can distinguish a
                                           provide solutions to security breaches,
exactly what you want to know out                                                    potentially dangerous crash situation
                                           financial transaction fraud, false IDs
of the measurements you’re taking.”                                                  from other non-harmful incidents to
                                           and other threats. Quantum Signal is
                                                                                     determine whether the airbag should
Signal processing can be used to           currently working on a three-year
                                                                                     be deployed. During manufacturing,
solve problems and improve current         biometrics project for the National
                                                                                     signal processing can forecast
products and processes. Thanks in          Institute of Standards & Technology’s
                                                                                     impending machine tool failure
part to the Ann Arbor firm, advanced       advanced technology program. It was
                                                                                     and provide real-time product
signal processing technologies are         awarded $2 million to develop and
                                                                                     prognostics and diagnostics. The
moving from the ivory tower to a           test advanced signal processing
                                                                                     result: fewer damaged parts and
wide range of applications in the          techniques in the areas of face
                                                                                     minimal production downtime.
commercial sector. The company             recognition and speaker verification.
services a variety of industries,          The goal is to use the new technology     Last year the MEDC recognized
including automotive, defense, power       to improve airport security through       Quantum for its successful
generation, medical, manufacturing,        better screening, improve safety in       commercialization efforts. It was one
communications and biometrics.             automotive vehicles through better        of 17 companies and individuals to
                                           occupant sensing and enable               receive awards for excellence in the
Homeland Defense                           faster automated verification in          fields of advanced manufacturing,
With the nation’s increased focus on       telecommunications. The company           information technology, life sciences,
homeland security, Quantum Signal’s        also plans on developing a more
work in biometrics is very much in         accurate technology that can handle       continued on page 19
18


  Calendar of Events
October is
                       SEPTEMBER                                           OCTOBER                                          9
Minority Business
                       16      MICHIGAN ECONOMIC GROWTH
                               AUTHORITY BOARD MEETING
                                                                           1     BIOTECHNOLOGY BUSINESS
Development                                                                      CONSULTANTS, L.L.C. SMALL BUSINESS
                               MEDC Offices, Lansing                             INNOVATION RESEARCH (SBIR) GRANT
Month. The MEDC is                                                               WRITING WORKSHOP                           10
co-sponsoring many
                       18      MICHIGAN STRATEGIC FUND
                               BOARD MEETING
                                                                                 Biotechnology Business Consultants,
                                                                                 Ann Arbor
                               Victor Corporate Center, Livonia
events to celebrate                                                              For registration information,
                                                                                 please visit: www.bioconsultants.com
the contributions of   18-21   FRANKENMUTH OKTOBERFEST
                               Frankenmuth Convention and
                               Visitors Bureau, Frankenmuth                3     BIOTECHNOLOGY BUSINESS                     11-
minority-owned                                                                   CONSULTANTS, L.L.C. SMALL BUSINESS
                               For more information call (800) FUN-FEST.         INNOVATION RESEARCH (SBIR)
business to                                                                      GRANT WRITING WORKSHOP                     14
Michigan’s economy
                       23      LANSING REGIONAL CHAMBER OF
                               COMMERCE BUSINESS EXPO
                                                                                 Southwest Michigan First
                                                                                 Innovation Center, Kalamazoo
                               Lansing Center, Lansing
during the coming                                                                For registration information,
                                                                                 please visit: www.bioconsultants.com
                                                                                                                            16
months. These events   24      GOVERNOR’S UNIVERSITY SUMMIT
                               ON ECONOMIC DEVELOPMENT
                               James B. Henry Center, University Club,     3-9   TULIPANES LATINO ART AND FILM FESTIVAL
are included in this
                               East Lansing                                      For information contact the Holland Area   16
                                                                                 Convention and Visitors Bureau at
issue’s calendar.
                       24      MICHIGAN INVESTMENT AND
                               COMMERCIALIZATION SUCCESS
                                                                                 (800) 506-1299 or visit www.holland.org.

                               CELEBRATION                                 4     RED FLANNEL FESTIVAL, Cedar Springs
                               Michigan State Capitol Rotunda, Lansing           For more information contact the
                                                                                 Cedar Springs Chamber of Commerce
                       26      METRO MINORITY CHAMBER OF
                               COMMERCE 3RD ANNUAL BUSINESS/
                                                                                 at (616) 696-2662.
                                                                                                                            17
                               SCHOLARSHIP AWARDS BANQUET
                               George Cultural Center, Bloomfield Hills
                                                                           6-9   AFRICAN WORLD EXPO
                                                                                 St. Regis Hotel, Detroit

                       28      AMERICAN ARAB CHAMBER OF
                               COMMERCE U.S. ARAB ECONOMIC FORUM
                                                                           7     MICHIGAN MINORITY BUSINESS
                                                                                 DEVELOPMENT COUNCIL 20TH
                               Detroit Renaissance Center                        ANNIVERSARY AWARDS                         21
                                                                                 Cobo Hall, Detroit
                       29-1    MICHIGAN MAIN STREET WORKSHOP
                               Marriott Hotel, East Lansing
                                                                           7     CORNERSTONE ALLIANCE/NORTHSIDE
                                                                                 BUSINESS ASSOCIATION ANNUAL DINNER
                                                                                 Lake Michigan College, Grand Upton Hall,
                                                                                 Benton Harbor                              22
                                                                           7-8   HISPANIC ECONOMIC SUMMIT
                                                                                 AND BUSINESS EXPO
                                                                                 Hyatt Regency, Dearborn
                                                                                  Michigan Business Report                         19
     The following activities are conducted/sponsored by both the Michigan
     Economic Development Corporation (MEDC) and its local economic                               Quantum Signal
     development partner organizations throughout the state. For more detailed                    continued from page 17
     information on MEDC events please contact the MEDC at (517) 373-9808,
     E mail us at medcservices@michigan.org or visit the Web site at www.michigan.org.            venture capital and angel investing.
                                                                                                  Selections were based on innovation,
                                                                                                  success in the marketplace and
                                                                                                  contributions to Michigan’s economy.
9        MICHIGAN AREA FIRST WEST MICHIGAN
         SUPPLIER DIVERSITY CONFERENCE
                                                 23    BOOKER T. WASHINGTON BUSINESS
                                                       ASSOCIATION 73RD ANNIVERSARY
                                                                                                  Tech Tri-Corridor
         Holiday Inn Muskegon Harbor,                  & AWARDS BANQUET
         Muskegon                                      Ambassador Ballroom, Marriott Hotel,       A combination of factors convinced
                                                       Detroit                                    Rohde and partner William J. Williams,
10       MICHIGAN MINORITY BUSINESS
                                                                                                  Ph.D. to base their company in
         OWNERS/SOUTHEASTERN 14TH ANNUAL
         AWARDS BANQUET
                                                 24    CHALDEAN CHAMBER OF COMMERCE
                                                       ANNUAL AWARDS BANQUET                      Michigan. Rohde is a Michigan native
         Best Western Hotel and Conference             Southfield Manor, Southfield               who earned all of his degrees from
         Center, Ann Arbor
                                                                                                  the University of Michigan. Williams
11-15    CORENET GLOBAL SUMMIT, 2003             NOVEMBER                                         is professor emeritus of electrical
         Atlanta, Georgia                                                                         engineering and computer science
                                                 5-6   17TH ANNUAL UNIVERSITY OF
                                                                                                  at U-M.
14       MICHIGAN ECONOMIC GROWTH
         AUTHORITY BOARD MEETING
                                                       MICHIGAN/URBAN LAND INSTITUTE
                                                       (ULI) REAL ESTATE FORUM
         MEDC Offices, Lansing                         "Main Street Mania: Along Woodward         “We decided to stay in Ann Arbor–
                                                       Avenue and Beyond"                         particularly Ann Arbor–because
16       MICHIGAN STRATEGIC FUND                                                                  there’s a wealth of resources in terms
         BOARD MEETING                           13    DETROIT REGIONAL CHAMBER
                                                       OF COMMERCE SMALL BUSINESS                 of technical talent,” Rohde explained.
         Victor Corporate Center, Livonia
                                                       CONFERENCE                                 “It’s a thriving research environment.
16       LANSING DIVERSITY MATCHMAKER
         CO-SPONSORED BY THE MEDC,
                                                       Henry Ford Event Center, Dearborn          There are a lot of companies with
                                                                                                  potential crossovers with us.”
         LANSING AREA PUBLIC PURCHASING          18    MICHIGAN ECONOMIC GROWTH
                                                       AUTHORITY BOARD MEETING
         GROUP, MICHIGAN MINORITY BUSINESS
                                                       MEDC Offices, Lansing                      Indeed, the synergy created among
         DEVELOPMENT COUNCIL AND
         MICHIGAN STATE UNIVERSITY                                                                the companies in the Technology
         Kellogg Center, East Lansing            20    MICHIGAN STRATEGIC FUND
                                                       BOARD MEETING
                                                                                                  Tri-Corridor (TTC) has set the stage
                                                                                                  for Quantum’s growth. Rohde says his
17       SAGINAW AFRICAN AMERICAN
         MINORITY BUSINESS ASSOCIATION
                                                       Victor Corporate Center, Livonia
                                                                                                  company’s strengths play right into the
         ANNUAL MINORITY BUSINESS                21    SILVER BELLS IN THE CITY
                                                       Downtown Lansing
                                                                                                  TTC’s three industries–life sciences,
         DEVELOPMENT MONTH LUNCHEON                                                               advanced automotive technologies
         Horizon Conference Center, Saginaw            For more information contact the Greater
                                                                                                  and homeland security. “I think that
                                                       Lansing Convention and Visitors Bureau
21       SAGINAW COUNTY MINORITY                       at (517) 487-0047 or www.lansing.org.      Michigan is obviously an industrial and
         BUSINESS DEVELOPMENT CENTER                                                              research development center. And
         "GROWING YOUR BUSINESS IN
         CHANGING TIMES"
                                                 22    INTERNATIONAL FESTIVAL OF LIGHTS
                                                       Battle Creek
                                                                                                  these particular three fields are really
         Saginaw Event Center, Saginaw                                                            excellent areas… in terms of economic
                                                       For more information call the Greater
                                                       Battle Creek/Calhoun County Visitor        development, overall technology and
22       GRAND RAPIDS AREA CHAMBER
         OF COMMERCE 2003 MINORITY
                                                       and Convention Bureau: (800) 397-2240.     commercialization.”
         BUSINESS CELEBRATION                                                                     Rohde sees big things in the future
         Amway Grand Plaza Hotel
         Grand Rapids
                                                                                                  for Quantum Signal, especially in the
                                                                                                  emerging area of biometrics. His hope
                                                                                                  is to continue to build on the services
                                                                                                  the company currently provides, while
                                                                                                  launching more and better products
                                                                                                  in the automotive and homeland
                                                                                                  defense markets.
20
Homeland                                    problems with the system or the
                                            aircraft. Integrated systems bring
                                                                                         systems, aerospace components and
                                                                                         customer services, detection and
Security                                    together all of the displays and             protection systems, aviation security
Technology                                  communications in the cockpit of
                                            an airplane. Mission management
                                                                                         and marine systems. The Michigan
                                                                                         operation employs about 1,200
continued from page 7                       systems deal with storage.                   people, including 800 engineers. The
                                                                                         company recently expanded into a
                                            “These [mission management]
                                                                                         second facility in Cascade Township.
                                            systems actually manage the weapons
buses, enhancing safety and                                                              The building houses a sophisticated
                                            on the airplane,” said Dave Miller,
affordability and maintaining or                                                         systems-integration laboratory
                                            Smiths Aerospace vice president and
enhancing performance.                                                                   that will be used to design, develop
                                            general manager. “They know where
                                                                                         and test avionics systems and
Finding ways to increase fuel               the weapons are and accomplish the
                                                                                         components, primarily for future
efficiency is extremely important           release of the weapons.”
                                                                                         military aircraft. The company is
to the DOD. “When we went to
                                                                                              also hiring 120 new employees.
battle in Iraq, we were using a
million gallons of fuel a day,”                                                              “When we decided we needed a
Wend said. “So when we have                                                                  new building, Cascade was
to take it with us, water and fuel                                                           willing to give us a tax abatement
are our biggest components.                                                                  and the state of Michigan was
Whatever percentage we                                                                       willing to give us a Single
can reduce makes it a whole                                                                  Business Tax credit for creating
lot better for us. We save a                                                                 new jobs,” Miller said. “This was
ton of money in the logistics,                                                               very important because it helped
as well as in the overall cost                                                               the company make the decision
of fuel on the battlefield.”                                                                 to grow our business here.”

Flying High                                                                                  Looking Ahead
Advances in military technology                                                               In addition to the expansion,
are being made on both land                                                                   Smiths Aerospace has set some
and in the air. Smiths Aerospace,                                                             other goals. According to Miller,
headquartered in Grand Rapids,                                                                the company wants to become a
is a high-tech electronic systems The prototype military truck features command and           Tier One supplier to airplane
designer and producer that           control equipment, infrared night vision camera          builders such as Boeing and
supplies both the military and       and a parallel hybrid engine. The four-wheel-drive,      Lockheed. There’s also a
                                     crew cab pickup has a 2.4 kilowatt electric system
the commercial aviation                                                                       proposal on the table to be a
                                     with 110-volt outlets for exportable power, and
industry. The company provides provides up to 12 percent better fuel economy                  major supplier to Boeing for its
avionics and flight management       over a straight gasoline-powered pickup.                 new, efficient 7E7 aircraft.
systems for aircraft. Its products                                                            Boeing is expected to make a
are integrated into virtually every                                                      decision by year’s end on whether it
                                            Commercially, the company’s biggest
American and British military aircraft.                                                  will move forward with the airplane’s
                                            product is its flight management
                                                                                         production.
Smiths Aerospace has three primary          system for the Boeing 737 — a fully
product lines on the military side:         autopilot-coupled system with the            “If we can do all the things we want
data management, integrated systems         capability to fly the airplane.              to do on that aircraft, that’s going to
and mission management systems.                                                          be a very sizeable investment for
The data management line involves           A Michigan Expansion                         Smiths Aerospace. It will secure our
flight data recorders, a.k.a. “black        British-owned Smiths Aerospace               future into 2020,” Miller said. “This is
boxes,” that can contain clues as to        has other divisions located in               one of those once-in-a-lifetime
why an airplane went down. It also          North America and Europe. These              opportunities, if you can find a
uses monitoring systems to predict          businesses focus on actuation                way to do it.”
                                                                 Michigan Business Report       21
building the foundation
                             for your growth.




DTE Energy’s Economic Development team offers the information on Michigan locations
your business needs. And we’re constantly improving our services and contacts to help
your expansion or relocation go smoothly. One example is our Michigan Site Network
(MiSiteNet.org). This commercial and industrial property database includes customized
reports, contact management, video clips of property, and other information you need
to easily make the best choice possible. And that’s just one part of how we can help.
Call us at 800.845.0320 and let our ever-expanding network help expand yours.


                              For all the energy you’ll ever need                       e=DTE
In the next edition of


                Businesses 400 years ago
             floated along the waterways
                 to reach their customers.
                      Railroads became the
              high-speed delivery method
                      150 years ago and the
                state of business changed.
                Today the path to success
                   is along the information
                          superhighway and
                     Michigan's Broadband
                    Development Authority
             is making it easier for public
                    and private enterprises
                  to access the high-speed
                        telecommunications
                         services necessary.




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                          for information on advertising rates and options.




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