< Previous184 JANUARY 2019 SI T E S E L E C T IO N“MFA,” Oberheide says, “protects against phishing and other attacks and secures logins from attackers exploiting weak or stolen passwords.”In a blog post, Cisco’s executive vice president and GM David Goeckler explained to employees that the Duo acquisition would pair Cisco’s networking power with a security component.“Duo’s relevance spans across the entire extended enterprise,” Goeckler said. “It’s a highly strategic addition that enables Cisco to deliver what our customers require in today’s multi-cloud world — the ability to securely connect any user to any application on any network.”Feted as Ann Arbor’s fi rst unicorn, Duo is part of an entrepreneurial ecosystem that has yielded “a huge proliferation of technology-related jobs,” says Phil Santer, vice president and chief of staff of Ann Arbor SPARK, a ubiquitous public-private partnership that promotes economic development, particularly in the realm of startups and entrepreneurship.“Just in downtown Ann Arbor,” Santer tells Site Selection, “we’ve got tech companies with , employees. I think it’s only going to grow. It’s a huge part of our economy.”Like Santer, Emily Heintz comes armed with numbers. Heintz recently founded EntryPoint, an economic development research group. She tallies “active venture-backed startups” in Ann Arbor, representing percent of the startups in Michigan and a percent increase in the last four years. She counts venture capital fi rms headquartered or with an offi ce in the Ann Arbor area, which represents, she says, over percent of the venture capital fi rms operating in Michigan.Heintz, who held previous jobs at the Michigan Venture Capital Association, Michigan Economic Development Corporation and Ann Arbor SPARK, believes the city is poised for a breakout.“ ere have been a lot of really great ingredients in Ann Arbor for a long period of time, and we’re just now starting to see those ingredients come together to make something great. Duo is a great example,” she says, adding that Duo’s pricey acquisition by Cisco means that “a lot of people with experience with Duo will have some extra liquidity and will be looking to make investments of their own. We’ll see people leave Duo and start more companies in Ann Arbor.”Silicon Valley Comes CallingAs if by providence, a team of site selectors from Silicon Valley touched down in Ann Arbor on the very day the city was celebrating the news of Duo’s $. billion payday. It wasn’t the team’s fi rst visit. KLA-Tencor, a semi-conductor equipment company, had begun its site search for a $ million R&D facility with potential locations. Desktop analytics helped the company pare its list to , then three. e lengthy site search was led by Bobby Bell, KLA-Tencor’s chief strategy offi cer. “ e criteria we used,” Bell tells Site Selection, “were talent supply, talent quality and cost. We also looked at the university network in each region. We looked at the quality of life attributes and the ability to attract talent to the area. We thought partnership with leading universities on research was very important.” e University of Michigan, which would play a crucial role in KLA-Tencor’s ultimate decision, has evolved into a catalyst for entrepreneurial activity with a federally-funded research budget of $. billion a year, second only to Johns Hopkins, according to the National Science Foundation. In ere have been a lot of really great ingredients in Ann Arbor for a long period of time, and we’re just now starting to see those ingredients come together.”(continued from Page )the very day the city was celebrating the news of Duo’s $. billion payday. It wasn’t the team’s fi rst visit. KLA-Tencor, a semi-conductor equipment — Emily Heintz, Founder, EntryPoint186 JANUARY 2019 SI T E S E L E C T IO Na press release issued in October, U-M reported that the number of startups launched at the university nearly doubled in to .“U-M inventors,” the school reported, “went to market with a broad array of discoveries from autonomous shuttles to a post-surgery warning system that alerts doctors to patient distress well ahead of traditional methods.”Kelly Sexton, associate vice president for research-technology transfer and innovation partnerships at U-M, said the school’s Offi ce of Technology Transfer is seeing increased interest from companies wanting to connect with U-M to license technology.“We’re seeing an explosion of interest in launching software startups,” Sexton said, noting that nine of the startups are software companies. “Network security, for instance, is now one of the fastest growing industry sectors in the Ann Arbor area, and it all started with the university’s investment in the early internet.” e recent crop of U-M startups includes Censys, a security platform invented in a computer science lab that helps information security professionals monitor and analyze devices accessible from the internet; Fifth Eye, a system that monitors the autonomic nervous system of hospital patients and predicts problems; and May Mobility, which has licensed fi ve autonomous driving-related technologies from U-M that will help build out a fl eet of autonomous public transit vehicles. In late October, KLA-Tencor announced its decision to build its new R&D center in Ann Arbor, which beat out undisclosed sites in Canada and the southwestern U.S. e investment is to create about new tech jobs.“ e whole Ann Arbor/Detroit metro area is going through a transformation,” says Bell. “We didn’t want to be the biggest fi sh in a little pond. We wanted the area to be attractive and prosperous to help us get the talent we’re looking for. Ann Arbor,” he says, “is really up and coming.” Alabama’s roaring auto industry intensifies workforce strain, but apprenticeship is gaining ground.Led by its enviable auto industry, Alabama’s manufacturing sector is on a serious roll. According to the National Association of Manufacturers, manufacturing workers in Alabama now total more than 270,000, representing more than 13 percent of the state’s workforce, the fifth-highest concentration in the country. December analysis from Axios identified the state as No. 1 in auto-industry job creation since early 2000, welcoming 25,200 jobs.As a result of automotive deals announced in 2018 — led by Mazda-Toyota’s $1.6-billion, 4,000-job complex about to break ground in Huntsville — many more manufacturing jobs are on the way. Although welcome, the proliferation of automotive jobs is sucking up manufacturing workers while exacerbating the state’s existing skills gap.“We’re actively looking for over 29,000 people for the positions we have open right now,” says Ed Castile, the state’s longtime deputy secretary of commerce for workforce development.Apprenticeship Alabama is one of several new levers officials are pulling. Operated under the U.S. Department of Labor, the program offers tax credits to companies that hire qualified apprentices who receive classroom instruction and on-the-job training. Since the program’s launch in January 2017, the number of statewide apprentices has climbed from 3,300 to 5,000. Castile says that total could double when 2018 numbers are tallied.Newman Technology, which supplies trim and window sash components to Honda and Toyota, employs nine full-time apprentices in machinery and multi-craft maintenance at its plant in Albertville. Newman covers tuition at Northeast Alabama Community College in nearby Rainsville. For the apprentices, the four-year program leads to a two-year associate’s degree.“Our approach,” says plant manager Jeff Thomas, “is to place three, four or five people into the program each year. By their fourth year, they’ll be card-carrying members of the company, and the others will flow in a progression right behind them.”The college, together with Apprenticeship Alabama, handles associated paper work, which Newman says is a huge weight off of the company’s shoulders. Employers’ fears of federal red tape, says Castile, have blunted the program’s potential.“Some companies just don’t want to have anything to do with the federal government,” he says. Largely because of that, Alabama is planning, by mid-2020, to establish a state office of apprenticeships with a looser connection to Washington. “We think that’s going to quadruple the number of apprenticeships and programs we have,” says Castile. “We are moving in the right direction.” by G ARY DAUGHTERSgar y.daug hter s @ site s ele c tion.c omST A TE SPO TLIGHTAlabama S I T E S E L E C T I O N JANUARY 2019 187The Test of Success188 JANUARY 2019 SI T E S E L E C T IO NMuseums and historic sites across the heartland have historic ties to industry, but their neighborhoods aren’t living in the past.When Brad Novak started collecting bobblehead dolls in 2002, he probably didn’t imagine that one day he’d be co-founder and president of the National Bobblehead Hall of Fame and Museum in Milwaukee, Wisconsin.Today the collection has grown to more than 5,000 bobbleheads. The permanent museum will open in early 2019 near the historic Walker’s Point neighborhood, at the former Kramer International foundry. The city’s industrial heritage includes a number of manufacturing companies that operated their own foundries.How many other Midwestern museums have ties to their locations’ unique industrial heritage? Here’s a brief checklist::Illinois: The Museum of Science & Industry in Chicago is housed in the former Palace of Fine Arts from the 1893 World’s Columbian Exposition. But you’ll find plenty of industrial and labor movement history a few miles away at the Pullman Historic District, built in 1880-84 as a planned model industrial town for the Pullman’s Palace Car Company. Today the area is seeing a development renaissance.Indiana: If you’ve ever seen the film “Breaking Away,” you know the locals known as “cutters” got their name from Indiana’s limestone business. You can find out all about it at the Land of Limestone Museum, housed within Stonegate Arts & Education Center in Bedford, the “Limestone Capital of the World.” Among other functions, StoneGate provides classrooms and office space to Ivy Tech Community College and Oakland City University.Iowa: The John Deere Tractor & Engine Museum is located on the west side of the TechWorks Campus, an advanced by ADAM BRUNSadam.br uns @ site s ele c tion.c omMIDWESTThe National Museum of the U.S. Air Force at Wright-Patterson Air Force Base near Dayton, OhioMuseum photo by Ken LaRock; photos courtesy of U.S. Air Force S I T E S E L E C T I O N JANUARY 2019 189manufacturing, innovation, and commercial center in downtown Waterloo, Iowa, where the company’s tractor era began with the acquisition of the Waterloo Gasoline Engine Company and the Waterloo Boy tractor in 1918.Kansas: “In 1962, Cosmosphere founder Patty Carey set up a used Planetarium Projector and rented folded chairs in the Poultry Building of the Kansas State Fair Grounds and created one of the first public planetariums in the central United States,” explains the website of this STEM education center and space museum found on the campus of Hutchinson Community College. Among area employers is an Arconic (formerly Alcoa) plant that makes aluminum for the aerospace sector.Michigan: In 1904, Detroit newspaper publisher and philanthropist George Gough Booth and his wife Ellen Scripps Booth bought 175 acres in Bloomfield Hills that would become the Cranbrook Educational Community. Known for its contemporary art museum, Cranbrook also is home to an Institute of Science, as well as pre-K through Grade 12 independent college prep schools.Minnesota: The Museum of Questionable Medical Devices (the state’s medical device cluster is top notch) now is part of the Science Museum of Minnesota. The Mill City Museum is on the site of what was once the largest flour mill in the world. But you don’t want to miss The SPAM Museum in Hormel’s hometown of Austin. Today Hormel employs 20,000 around the world. Missouri: Located in the former International Shoe Company building in St. Louis, the City Museum, opened in 1997, was the brainchild of artist and entrepreneur Bob Cassilly, whose website describes it as “an eclectic mixture of children’s playground, funhouse, surrealistic pavilion, and architectural marvel made out of unique, found objects,” all reclaimed from within the city’s municipal boundaries.Nebraska: Closed after the formation of Amtrak in 1971, Omaha’s Union Station was gifted to the city by Union Pacific in 1973. Today it’s home to the Durham Museum, named after benefactors Charles and Margre Durham. He was a civil engineer who built Henningson Durham & Richardson (HDR) into one of the nation’s largest architectural and engineering companies.North Dakota: In addition to its many aircraft, the Fargo Air Museum, opened in 2001, also houses one of the Midwest’s largest aviation libraries. Among the aircraft on display is the Global Hawk, an unmanned reconnaissance drone and a key component of the state’s unmanned aircraft systems (UAS) cluster forming around the assets of Northern Plains UAS Test Site in Grand Forks.Ohio: The National U.S. Air Force Museum at Wright-Patterson Air Force Base near Dayton (home of the Wright Brothers) is the world’s largest and oldest military aviation museum. Dating to 1923, when it opened in an aircraft hangar at the edge of McCook Field near downtown Dayton, the museum collection has grown to more than 360 aerospace vehicles and missiles. The Wright Company factory, founded in 1909, was the first factory established for the purpose of building airplanes.South Dakota: The Mammoth Site in the Black Hills community of Hot Springs, South Dakota, is an active archaeological dig site that boasts the largest concentration of mammoth fossils in the world. The original discovery occurred in June 1974 when heavy equipment operator George Hanson struck a 7-foot-long tusk with his blade — a supreme example of why archaeological reports are a part of every site selection’s due diligence. S P E C I A L A D V E R T I S I N G S E C T I O N A D V AN C E D MAN U F A C TU RI N G190 JANUARY 2019 SIT E SE L E C TI O NMany executives we interviewed say that as they increasingly look to increase their pace of change and transformation, they are not only leveraging internal assets in new and different ways but also turning more often to resources outside of their walls, as there are clear advantages to being close to where innovation is occurring. Many have formed partnerships and/or collaborate with other companies as well as universities, venture capitalists (VCs), research organizations, and/or industry consortiums ...They also feel, for the most part, that the US innovation ecosystem has a leadership position, but others are quickly catching up. Secondary research showed that, within the global competitive manufacturing landscape, both businesses and government research and development (R&D) play a major role in innovation ecosystems and are committing significant resources to R&D in advanced manufacturing ...Businesses account for the lion’s share of R&D spending, an accelerating trend across leading nations. Of the top 100 companies by R&D spend, the overwhelming majority (86) belong to the manufacturing sector, and 42 are from the United States. Also, 62 of the top 100 manufacturing companies by revenue belong to the top four future competitive manufacturing nations ...Like businesses and government R&D, VC investments play a vital role in feeding the innovation pipelines within top manufacturing nations. There was concern by some interviewed executives about the short-term, near-horizon timeline some VCs currently cite as deterrents for heavier VC activity in capital-intensive manufacturing. Some indicate more focus is needed in the mid-term horizon (e.g., five to 10 years) within manufacturing technology and innovation to help further tech transfer and to close potential “valley of death” commercialization issues.... Overall, many feel that more could and should be done to increase VC levels within the manufacturing technology space. Therefore, executives also indicate they are increasing venture capital activities internally, a growing trend for industrial companies, with some setting up their own venture funding arms to supplement traditional in-house capabilities.R&D, Ecosystems and VC Prove Central to InnovationIntel is planning site expansions in Oregon, Ireland and Israel, with construction expected to begin in 2019.Photo by Tim Herman courtesy of Intel CorporationThis is an excerpt from Deloitte’s “Exponential Technologies in Manufacturing” study, published in early 2018, and based on seven months of surveys and discussions with executives at some of the world’s largest manufacturing organizations. For the complete report, visit www2.deloitte.com/us/en/pages/manufacturing/articles/advanced-manufacturing-technologies-report.SP ECIAL AD VER TISING SECTION AD V ANCED MANUF A CTURING192 JANUARY 2019 SIT E SE L E C TI O NMississippi continues to recruit top-tier companies with its highly skilled workforce — a workforce the state is committed to developing to fill the in-demand jobs of the future.With workforce development being a top priority of his administration, Gov. Phil Bryant enacted the Mississippi Works Fund in 2016. The fund commits $50 million to assist in growing the workforce of tomorrow. Seventy-five percent of the funds are allotted for new job creation while 25 percent is allotted for existing workers and workforce certification. The fund has proven to be a valuable resource as corporate leaders rely on a quality trained workforce to help them achieve success and long-term growth in today’s dynamic marketplace by providing a pipeline of skilled workers for their facilities. Northrop Grumman, manufacturer of rotary and fixed-wing autonomous systems and manned plat-forms in support of the United States and its global allies, announced the addition of a mix of new work to its Unmanned Systems facility in Jackson Coun-ty. The project is a $3.7 million investment which created 60 jobs for workers along the Mississippi Gulf Coast — employees who received training as a result of the Mississippi Works Fund. Tool maker Milwaukee Tool and third-party logistics provider FedEx Supply Chain are also benefiting from the Mississippi Works Fund as funds support the training of the companies’ 660 and 450 new employees, respectively. The state of Mississippi, through forward-thinking initiatives such as the Mississippi Works Fund, is able to help these and other manufacturers exceed production goals by enhancing its workforce and creating an environment where businesses can thrive. The legislation also has been instrumental in the start-up of programs critical to helping fill in-demand manufacturing and high-tech jobs throughout the state. The Mississippi Furniture Academy is the first program started as a result of the Mississippi Works Fund. Launched in 2017, the manufacturing skills program is a 28-hour course designed to train students for in-demand jobs in the furniture manufacturing sector. Addressing a need to fill high-tech coding jobs throughout the state, Mississippi Works funds assisted in the creation of the Mississippi Coding Academies. The academies offer post-secondary students an intensive 11-month, tuition-free computer science education program. The program prepares highly motivated high school graduates for careers in the high-tech field of coding. These business advantages and proactive economic development initiatives position companies for years of growth and viability in Mississippi.——————————————————————————————————————To learn more about how a Mississippi location can help your business gain momentum, contact the Locate Mississippi team at 1.800.360.3323 or locateinms@mississippi.org.MISSISSIPPIPLAYS TO WINWith workforce development being a top priority of his administration, Gov. Phil Bryant enacted the Mississippi Works Fund in 2016. The fund commits $50 million to assist in growing the workforce of tomorrow.Next >