Private Sector Job Creation fromAerospace and Clean Energy

Convergence

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OverviewWho is CAMT?

NASA Space Act Agreement for Colorado

CAMT Technology Acceleration Program

ACE Manufacturing Innovation Park

Regional Innovation Cluster Activities

Funding Opportunities

How it all fits together

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CAMT OverviewCAMT founded in 1994, currently 17 full time staff across the State

Part of national NIST - Manufacturing Extension Partnership

Partially funded by the US Department of Commerce (NIST/MEP) with program income from private industry

Mission: To strengthen the global competitiveness of Colorado manufacturing and technology companies

59 “Centers”1600 Field Staff

440 Service Locations

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CAMT Partnerships

NASADOLDODDOEEDAEPA

OEDITSBDCCU/CSU/CSMNIST/NREL

City & CountyCommunity CollegesWorkforce Dev Center

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CAMT Economic Impact

Cumulative Jan. 2000 – Dec. 2010 (mostly since 2005)

•Increased Sales: $205,411,980•Decreased Costs: $71,054,413•Capital Spending Increases: $74,398,569•Jobs Created or Saved: 2,606

*Source: Independent surveys commissioned by NIST of 264 companies.

• Ft. Collins

• BoulderGrand Junction

• • Denver

• ColoradoSprings

Pueblo•

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NASA-Colorado Space Act AgreementSigning and three events on December 13th 2010:• Signing ceremony – Governor Ritter, NASA, NIST, Sen. Udall, CAMT

• Luncheon presentations (NASA Deputy Administrator and CAMT – TAP)

• Panel discussion:• Doug Comstock, Director, Partnerships, Innovation and Commercial Space, Office of the Chief Technologist, NASA

• David Hiller, Executive Director, CO Renewable Energy Collaboratory

• LaVonda Jeffrey, President, Intrex Aerospace

• Rocky Scott, Director, Business Development, Woodward Governor & Colorado Clean Energy Cluster

• Mark Sirangelo, Corporate VP, Sierra Nevada Corp. Space Systems

March 30th: Growth Through Innovation- Executive Exchange170 Colorado executives and stakeholders

NASA, NREL, USPTO, IDC Energy Research, Lockheed Martin, Woodward Governor, Plug and Play

April 25th: NASA Chief Technologist – Innovation Roundtable

June: Agilent Building in Loveland, Developer selected:

United Properties, Minneapolis

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NASA – CAMT Partnership

Jointly develop or mature NASA mission-use technology for a variety of industries

Test and establish manufacturing processes utilizing the unique environment of space

Find potential licensees of NASA’s intellectual property

Provide business development and lean services to NASA's SBIR/STTR firms

NASA will provide “Innovation Ambassador”

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Where to Create Jobs in Colorado

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Why Aerospace and Clean Energy?At the highly sophisticated technology level, the solutions to most clean energy technology

problems are "old news" in most aerospace applications

At the manufacturing level (materials, components, and systems) aerospace is transforming, while clean energy is just forming --- both have a very similar manufacturing base

Energy: Limited experience, can use aerospace learnings

Energy: Good understanding, but have many open problems

Energy: Could use commercial off-the-shelf (COTS) technology to speed up

Energy: None, but have similar harsh operating environment

Aerospace: 50 years of experience, many solved problems

Aerospace: Developed and tested under extreme operating conditions

Aerospace: Existing ecosystems with mature supply chains

Aerospace: Highly advanced, reliable, field-tested, standard

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Environment: Aerospace

Aerospace is already a very large, mature business

Undergoing global transformation this decade:Aviation business:

Supply chain management pressures

Subassembly-level innovation required from suppliers

Space business: commercial space applications

Holds opportunity for consolidation in aviation and growth in commercial space

Colorado among top three in nation with 160,000 jobs

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Environment: Clean Energy– Clean energy is the "next big thing" --- everybody agrees

(VCs, Fortune 500 executives, governments worldwide)

Energy usage is increasing worldwide, especially in emerging economies

Current demand 15 TW, predicted to double to 30 TW by 2050Still 1.4 billion people without any electricity

Fossil fuels are running out, sooner or later

Nuclear energy has multiple challenges – would need one new plant a day for 20 years to meet 1/3 demand

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Example: SmartGrid

Two separate tracks: Transaction: who pays whom what, and when

Actual physical electrical power transfer (switches, wires, inverters, circuit protection, delivery, etc)• Lots of equipment needed• Lots of qualified technical labor needed

We have the technology, now we need tobuild all the “things”

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Need for Technology Acceleration Program

Commercialization in the U.S. has been very slow

Need to “build” not just “research and develop”

Infrastructure for "commercial space" or meaningful renewable energy usage is not yet mature – presents opportunity

Growth of aerospace and clean energy creates need for re-tooling traditional manufacturers and creating new ones

Colorado has strengths in both aerospace and clean energy

“Cars and computers get pitched after a while, a space mission is financed to run 30 years”

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Typical Company Business ModelTimeline of value creation

Number of jobs created

Con

trol

led

laun

ch

Year 1 Year 3Year 2 Year 4 2 years

Bet

a pr

otot

ype

Firs

t m

arke

t tes

t

Alp

ha p

roto

type

Regional Scale-up

National Scale-up

International Scale-up

Value Generation Curve

5 years 10+ Years

AnnualInvestment

$10 total +$10

+ $20

+ $5

$1

$20

$100

$10

$15

$5

$50

+ $50

$200 $500

Mar

ket

Part

ner

Value Generation Curve

AnnualInvestment

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Smart Grid Technology Framework

Generation and Fuels

Transmission & Distribution

Customer

Markets Operations Service ProvidersTechnology to support participation in wholesale energy markets (e.g. scheduling, trading, settlement)

Technology to support the real-time operation of the grid (e.g. monitoring, control)

Technology/services to support the provision of energy services to customers

Technology to generate power at utility-scale and to create other energy fuels

Technology used to transmit and distribute power (e.g. switches, transformers)

Technology to support customer energy management including distributed generation and electric vehicle charging

Smart grid• Nexant• Ventyx (ABB)

Smart grid• Energy Grid Networks• GE Energy• Green Energy Corp.• IBM• Infotility• Lockheed Martin• PowerTagging• Spirae• Telvent• Ventyx (ABB)

Wind• Boulder Wind Power• Clipper Windpower• Compass Wind• Repower• Siemens Energy• Vestas• WoodwardBiofuels• Gevo• OPX Biotech• Range Fuels• Solix Biofuels• Zeachem

Smart grid• GE Energy• Telvent

Smart buildings• Albeo• Coolerado• Easylite• Ravenbrick• Serious Materials• Starfield Controls• TerraLUX• VeraLED

Smart grid• Comverge• EnerNOC• TendrilTransportation• American EV• Boulder EV• Czero• EETrex• GoSmart• Lightning Hybrids• Proterra• UQM

Solar• Abengoa Solar• Abound• Advanced Energy• Ampulse• Ascent Solar• Juwi Solar• PrimeStar Solar• SkyFuel• SMA• Sundrop Fuels• SunEdison• SunTrac• zettasun

Smart grid• Comverge• EnerNOC• IBM• Lockheed Martin• Tendril• Ventyx (ABB)

Energy storage• Coorstek• Infinite Power Solutions• Porous Power• Prieto Battery• Ice Energy

Note: Based on NIST Smart Grid Framework

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Survey Results - Top Challenges

Workforce issues (in Clean Energy)

Lack of access to local laboratories

Issues related to scaling up production

Cost and reliability of power

Costs of shipping

© IDC Energy Insights

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Survey - Resources NeededShared administrative expertise

HR

CFO/finance

Legal

Insurance/bonding

Regulatory process (EPA)

Permitting processes

Qualified workforce and shared technical expertise

Mechanical designQA/QC, ISO, Six-SigmaMaterialsOptical designPCB layoutUser interface designTechnical writingSupply chain Design for manufacturing

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Survey - Resources NeededAccess to local laboratories

Certification (UL, sensor performance)

Testing (RF, environmental)

Interoperability (software, intelligent devices)

Clean rooms

Access to shared equipment and softwareSoftware/workstations (CAD, fluid dynamics, ERP)

Rapid prototyping (plastic cases, electronics)

Machine shop (CNC machines)

Casting/forging/stamping

Nuclear magnetic resonance imaging (NMRI)

Local high volume electronics manufacturing

High end conference facilities with videoconferencing

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CAMT Company Visits – Informal Survey

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CAMT Survey

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CAMT Survey

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CAMT Survey

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CAMT Survey Results Top Challenges:

Need to support existing growth companies

Lack of access to testing facilities

Lack of access to quick prototype creation resources

Lack of access to manufacturing resources

Supply chain too distributed, difficult to manage

Not aware of Colorado resources

Technology transfer generally difficult

Not aware of state and federal funding/assistance

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CAMT Survey - Resources NeededVetted experts (technical and business)Training and certification of workforceElectronic library for paid technical, market, research reportsGrant writing centerBusiness plan writing/ business advisorySupport service – legal, admin, business, government (permits, etc)Innovation / Intellectual property / technology transfer assistanceAccess to capital, grants, loans

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CAMT Survey - Resources NeededEquipment and services

Machining and metal processing (CNC, plating, etc)

Electronics manufacturing

Simulation hardware and software

Testing resources (temperature, EMC, tensile, vibration, etc)

Certification resources (solar, electrical/electronic, mechanical – standards)

Scanning electron microscope

Furnace

Laboratory space (wet and dry)

Temperature chambers

Plastics manufacturing

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ACE Manufacturing Innovation ParkPhysical Extension of Technology Acceleration Programs

Large multi-use campus with aerospace and energy manufacturing innovation focusShared services (testing, certification, machine shop, electronics, etc)Advanced manufacturing lab“Partner row” – state and federal agenciesSuppliers collaborating on Design for Manufacturability - helps to be closeEducation programs Consumer showcase: major center of 21st Century technologiesHouses 70 -100 companies with 100- 150 employees each

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• Manufacturing (machine shop, electronics, etc)• Testing (NDT, EMC, environmental, etc)• Consulting (engineering, technology, business,

government)• “Partner Row”

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CAMT Survey – ACE ParkMain findings

Has to be competitively priced

Concerns about timing (when will it be available, how fast will it scale up, what will go in first)

Location: Front Range

Most valuable selling proposition:

Shared services and equipment

Access to Federal agencies / laboratories / grants / support

Supply chain simplification

No serious objections regarding confidentiality, privacy, competition (they already compete) – need standard practices in place

Positive attitude toward the concept, value, needs addressed

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New CAMT T.A.P. Services1. Training, Workshops and Consulting

Rapid Cycle Product Introduction

Profitable Intellectual Property Management

New Supply Chain Development

2. Colorado Technology and Manufacturing Asset Map

Partnership with CSU, CCEC – kicked off March 1st

We’ll be visiting you – make sure you are in here

3. Government Programs and Grants OfficeProfessionally staffed Denver office, with D.C. contract staff

Large collaborative grants – have funding to write company grants

4. Networking, Events and Forums

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Regional Innovation Cluster

Major shift in economic development strategy nationally:Reduce funding for “excellence” and individual contributors

Dramatically increase funding of networks, regions, and collaborationWhy? It produces better economic development results

Regional: for us the logical “economic region” is State of ColoradoInnovation: Focus on growth driven by “out-innovating” the worldCluster: “stick to your knitting” – focus on what you are already good at:

Aerospace (#3 in nation, 165,000 jobs)

Clean Energy (#1 in innovation, #4 in clean energy initiatives, top in funding)

IT/software

Bioscience

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Regional Innovation Cluster

Where is the money?EDA, SBA, SBDC, NSF, alphabet government soup

Private funding – VC, PE, companies with R&D budgets

CAMT Federal Funding won Through Competitive Process in 2010/2011$750,000 – NIST MEP – Manufacturing Center of Excellence in Southern Colorado

$700,000 – NAVAIR – Veteran Owned Businesses supporting technology projects

$135,000 – EPA (with CDPHE) – Economy, Energy, Environment support for companies

CAMT State Funding$350,000 – OEDIT – Supply Chain Database and Grants Office

CAMT New Funding Requests in Process$1,000,000 EDA – I6 Green Challenge Lab to Market, with Colorado-wide network of stakeholders

$6,000,000 EDA Regional Innovation Cluster initiative

Dozens of other grant opportunities at every Federal agency

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How It All Fits Together

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Economic Impact: 10,000 jobs, $5 billion in 5 years, plus multiplier

Technology Acceleration Programs: - Enable 100 converted or new manufacturers for aerospace and energy,

create average of 30 new jobs 3,000 total- Additional sales for TAP companies: 100 x $15 million = $1.5 BB

ACE Manufacturing Innovation Park: - House 70 companies with average of 100 new jobs 7,000 total-- New sales for ACE Park companies: 70 x $ 50 million = $3.5 BB

Multiplier effect for manufacturing is 1.53 (for every 10 manufacturing jobs, 5

more are generated in the region)

Net economic output will be over $7 billion per year!

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Big Questions?

What do YOU need?

How can CAMT support you?

What stands in the way of job creation at your company?

Should we do an “ACE Park II” in SoCo?