Specialty Manufacturing Cluster Group

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					  Specialty Manufacturing Cluster Group
  October 28, 2003

  Clyde Nixon             Co-Chair          Sun Hydraulics
  Peter Straw             Co-Chair          SAMA
  Ric Galberaith          Co-Chair          ATI
  Tony Dertouzos          Coordinator       Manufacturing Consultant
  Bruce Andersen                            SCTI
  David Suchy                               Teleflex Morse
  Ed VerVane                                Winsulator
  Jim Gray                                  Wachovia Bank
  Joan McGill                               Sarasota CED
  John Cavanaugh                            Super Sensitive Music String
  Kathy Baylis                              Sarasota CED
  Kevin Connelly                            Apollo SunGuard

  John Baldwin, Vice Chairman of Team USA Inc., Harvey Coles Bank Ltd

 I. Introductions
     Peter Straw welcomes attendees and introduces guest John Baldwin
     who is in town for the Transatlantic Business Forum being held at
     the Ritz-Carlton on November 3rd and 4th. Dave Suchy and Teleflex
     Morse are thanked for hosting today’s meeting.

II. Opening Remarks
     Clyde Nixon discusses Specialty Manufacturing and how to
     encourage growth and retention of the same. He emphasized that
     we need to lobby the government whenever possible to reduce the
     financial burdens on companies that do business in Florida.

     He went on to say, however, that Florida is never going to be the
     lowest cost manufacturing location in the U.S. and certainly not in
     the world. If quality of life is not a major consideration, a
     manufacturer really has no business in Florida unless they need to
     be there to supply a specific market. “Our land cost is high,
     unemployment is low and manufacturing skills are scarce.”

     Clyde stressed that we need to be proactive in responding to the
     needs of employers in order to make it as easy for them to do
     business in the area as possible. This means solving problems in a
     very timely manner. There is a need for a rapid response team or a
     dedicated organization that says, “We care about you.” and where
       issues such as PGT’s stoplight and Aladdin’s public bus route needs
       do not continue to go unresolved. A Total Team Concept needs to
       be embraced, where economic development dollars are spent for
       positive impact.

       Ric Galberaith continues the opening remarks by reminding the
       group that cluster development addresses organic growth (existing
       businesses) and inorganic growth (new businesses). He went on to
       point out how the U.S. economy has always been driven by
       technology and innovation, and that Government, university and
       private-sector support is helping to commercialize new
       technologies. Approximately 73 percent of all U.S. patents originate
       from research conducted through federally funded institutions.

       He suggests a three-faceted strategy that includes a focus on
       “following the money trail” in Florida’s High Tech Corridor,
       consisting of 21 counties, of which Sarasota is a member. The six
       sectors targeted for growth in the corridor - Aviation & Aerospace,
       Information Technology, Medical Technologies, Microelectronics,
       Modeling, Simulation & Training, Optics & Photonics – could be
       opportunities for existing Sarasota contract manufacturers to
       address a shortage of supply or to develop primary technology to
       attract start-ups. As an example of the financial potential, he cited
       that Florida companies already account for more than $10 billion in
       aerospace and aviation contracts [over $6 billion with the U.S.
       Department of Defense and $4 billion awarded by the National
       Aeronautics and Space Administration]. A graphic depicting the
       revised strategy, titled “Specialty Manufacturing Cluster Strategy”,
       was distributed during the discussion.

III. “Build Your Toolkit for Business Retention & Expansion”
      At the request of the cluster group, Kathy Baylis brings a CED
      presentation titled “Build Your Toolkit for Business Retention &
      Expansion”. Prior to her presentation, she elaborates on subjects,
      which she finds common to all the cluster groups:
         a. Funding is not a barrier for cluster group progress. All viable
            concepts, plans and budgets should be submitted for review
            and consideration.
         b. Anyone can participate in the cluster group process. It is a
            community process.
         c. There is no process owner. The CED manages the cluster
            groups, but the process belongs to the community.
       d. Each cluster group will determine the ending or completion of
          the process.
       e. The end product or achievements of each cluster will be
          documented in final reports.

    Kathy delivers a 10-minute synopsized version of the PowerPoint
    presentation. The presentation, which normally runs one hour,
    includes a well-produced video montage of Sarasota points of
    interest (theater, beaches, shopping, etc) and video interviews with
    executives of Sun Hydraulics, Florikan, GlassPro and SinoFresh.
    Kathy offers to make copies of the CD presentation available to
    anyone who wants one. Joan McGill also distributes copies of the
    CED’s advertisement series run in the Sarasota Herald-Tribune this
    past September.

    These items give group a better sense of the current message being
    delivered about Sarasota businesses and the group concentrates on
    the quality of the PowerPoint presentation. The consensus is that it
    conveys a positive portrayal in a professional manner and the piece
    is earmarked as a resource in the development of the “Make the
    Case” initiative.

    Kevin Connelly takes the opportunity to ask about the protocol for
    requesting funding for initiatives and Kathy suggests a written
    business plan with supporting requests for bid, as applicable.

IV. Subcommittee Reports

    Can You Hear Me Now? Tony Dertouzos conveys the regrets of Rod
    Hershberger who is unable to commit the time necessary to chair
    this committee effectively, a concern he also expressed at the July
    meeting. Peter Straw encourages the group to seek out and identify
    another candidate to chair this committee.

    Workforce Development
      a. Bruce Andersen delivers a progress report on the
         development of the Technical High School. The five-year plan
         is in the site selection process and envisions an 80-acre
         campus, which will include SCTI at its center. Bruce is
         charged with delivery of the educational program and general
         planning of the high school. Students, parents, businesses
         and other community members will be surveyed for
         suggestions and recommendations.
  b. Peter Straw informs the group that Lindy Smith of Aladdin
     Equipment has expressed current interest in working with the
     cluster group. She is a very active member of the Suncoast
     Workforce Board and he will increase dialogue with her.
  c. Joan McGill emphasizes the importance of manufacturers
     reaching out to the high school level. Ed VerVane has had
     first-hand experience, at this, with mixed results.
  d. Dave Suchy recommends that the cluster group or SAMA
     consider sponsoring a presence at the Education Foundation’s
     annual Regional Science, Engineering and Technology Fair, to
     be next held in March 2004 [last year’s event was attended
     by over 750,000 residents and visitors]. Dave distributes
     copies of a recent Education Foundation brochure and letter.
     Jim Gray [who is a board member of the foundation] will work
     on developing a plan for this.

Make the Case
  a. Kevin Connelly, subcommittee chair of Make the Case,
     reviews the main goal of this initiative; to educate the
     community and public officials on the importance of
     manufacturing and build a broad base of support for targeted
     development of this cluster.
  b. The group discusses the importance of this initiative, relative
     to the other two. A strong public case for manufacturing will
     pave a smoother road for any other initiative.
  c. Kevin’s subcommittee is moving forward with its previous
     recommendation that a comprehensive marketing plan be put
     into place, with an emphasis on public relations. Due to the
     broad nature of such a plan, which will include extensive
     media coverage, plant tours and middle & high school
     outreach, he recommends that a dedicated marketing firm be
     hired to achieve this goal. His recommendation to the group
     is Peter Straw’s company, Performance Development
     Strategies, and has requested a plan and proposal from his
     firm. He feels that Peter’s long history of dedication to the
     manufacturing community of this area gives him an
     exceptional understanding of its needs and he attests to his
     company’ marketing expertise.
  d. Dave Suchy states the importance of directing the focus of
     this subcommittee to county officials. The drive must be to
     communicate in economic development terms (i.e. value-
     added jobs), so that county government officials would not
     think of missing a cluster group meeting. Ric Galberaith
     states that Sarasota County Administrator Jim Ley has
            indicated to him that he does not hear from manufacturers
            and he identifies Mr. Ley as a valuable resource for the “Make
            the Case” initiative.
         e. David Suchy also raises the question of who is our target for
            “Make the Case?” The group consensus is that we need to
            especially concentrate on three sectors: Government (both
            local and state), Education and the General Public.
         f. Jim Gray suggests that we contact other communities that
            have already gone through this process and share existing
            business models.

 Peter Straw charges the group with reviewing the resource materials
 handed out today. The selected materials contain articles on many
 subjects covered by this group, including workforce development,
 technology transfer and economic incentives. He requests that
 comments, suggestions or ideas be forwarded to Tony Dertouzos
 [adertouzos@yahoo.com] or to any of the three co-chairs, Clyde Nixon
 Peter Straw or Ric Galberaith.

 Peter also encourages the group to look for interest groups outside of
 manufacturing that can form partnerships to forward our goals. Cluster
 group members can also look forward to a report from Kevin Connelly
 and Peter, at our next meeting, on the results of the first meeting of
 the Enterprise Florida Manufacturing Advisory Council to be held on
 December 2nd.

 Next Specialty Manufacturing Cluster Group meeting is scheduled for
 December 9, 2003, 4 PM and will be held at Wachovia Bank, 1819
 Main Street – Suite 230 in Sarasota.

V. Resource materials

    1.   Florida Trend’s Business Florida 2004
    2.   Area Development September 2003
    3.   Southern Technology Sites 2003
    4.   21st Century Workforce: Suncoast Florida (executive summary)
    5.   Home Economics, Industry Week (article)
    6.   Sarasota CED advertising series
    7.   Diagram: Specialty Manufacturing Cluster Strategy

 Respectfully submitted by
 Tony Dertouzos – Group Coordinator
                       Strategy Initiatives:
                           Make the Case
                           Can You Hear Me Now?
                           Workforce Development


Primary Products: Target                      Support Products: Identify
 product/market demand                        significant gaps in supply &
 segments in Florida High                     support of Florida High Tech
Tech Corridor best supplied                   Corridor products to build &
   by existing Sarasota                           attract to Sarasota


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