< Previous36 JULY 2019 SI T E S E L E C T IO N Growth Comes in WAVES Growth Comes in WAVES In , Canada’s federal department of Innovation, Science and Economic Development created fi ve superclusters across the country. Each of the superclusters is centered around an area already known for its density in a specifi c sector: Digital Technologies in British Columbia, Protein Industries in Alberta, Advanced Manufacturing in Ontario, AI- Powered Supply Chains in Quebec and the Ocean Supercluster in Atlantic Canada. e government’s investment of up to $ million* will be matched dollar for dollar by the private sector and is expected to create more than , jobs over years and grow Canada’s GDP by more than $ billion. Each of the fi ve superclusters will receive between $ million and $ million. e Ocean Supercluster was met with robust support and had more than members at formation, including universities, petroleum research and development companies, and ocean-based agriculture fi rms. e supercluster is centered around a critical mass of established ocean industries including off shore oil and gas exploration and production, shipping, shipbuilding and marine equipment, fi sheries and fi sh processing, maritime and coastal tourism, and marine transportation as well as emerging industries such as marine renewables, seabed mining, aquaculture, marine biotechnology, and ocean monitoring, control and surveillance. Despite having the longest coastline and the fourth largest ocean territory in the world, Canada’s ocean activities comprise .% of the global ocean economy, but only % of the country’s economy. By , the supercluster is expected to grow the country’s ocean economy from $ billion to more than $ billion. e new organization is expected to enhance the competitive advantage of Canadian ocean- based value companies and establish scalable markets for Canadian companies seeking to commercialize new enabling technologies. Cluster- building activities are also expected to attract world-class talent and create or extend supply chains and foster linkages with other Canadian superclusters and international ocean clusters. by S AVANNAH K ING s avannah.king @ site s ele c tion.c om A TLANTIC CANAD A Peggy’s Cove lighthouse in Nova Scotia, Canada. Photo: Getty Images S I T E S E L E C T I O N JULY 2019 37 Institutions and People Cluster Too More than % of Canada’s ocean economy is centered in Atlantic Canada. Ocean industries in the Atlantic Provinces account for more than half of all ocean-related jobs in Canada. From to , the oil and gas industry accounted for over $ billion per year of Newfoundland and Labrador’s economy. e region is home to the world’s highest tides and most signifi cant potential tidal energy resource. More than two-thirds of the jobs in Canada’s fi shing and aquaculture sectors are in Atlantic Canada, which also accounts for most of Canada’s record $. billion in fi sh and seafood exports in . “ e ocean is the new economic frontier,” notes “ e Ocean Economy in ,” a report from the Organization for Economic Co- operation and Development (OECD). “It holds the promise of immense resource wealth and great potential for boasting economic growth, employment and innovation. And it is increasingly recognized as indispensable for addressing many of the global challenges facing the planet in the decades to come, from world food security and climate change to the provision of energy, natural resources and improved medical care. While the potential of the ocean to help meet these challenges is huge, it is already under stress from over-exploitation, pollution, declining biodiversity and climate change. Realizing the full potential of the ocean will therefore demand responsible, sustainable approaches to its economic development.” According to the Ocean Health Index , Canada ranks No. out of exclusive economic zones extending nautical miles from country coastlines. Its highest scores occur in artisanal fi shing opportunities, clean waters, coastal protection and coastal livelihoods and economics. Canada’s Ocean Science Hub e Atlantic Provinces are home to the Canadian government’s most signifi cant cluster of ocean science and technology capacity and ocean-related programs and assets. ese include the Bedford Institute of Oceanography, Defense Research and Development Canada, National Research Council, Natural Resources Canada and Maritime Forces Atlantic. As for ocean-driven projects, Prince Edward Island’s Port of Charlottetown is undertaking a berth expansion project expected to be completed in fall . e project will extend the existing berth space by meters, which will allow two vessels (up to meters) to berth simultaneously. e new Ocean Supercluster comes at an opportune time for the region as more people are moving into the region than have in previous decades. e population of three Maritime provinces is currently growing at its fastest pace in decades, according to the Atlantic Provinces Economic Council’s latest report card. Prince Edward Island has led the country’s population growth at a rate of % annually. Between and , Nova Scotia’s population grew at its fastest pace since the s with an .% increase each year. New Brunswick trails Nova Scotia with an annual rate of .%, but this is still the highest rate for New Brunswick since the early s. While population growth in the Maritimes is accelerating, Newfoundland and Labrador saw a decrease of .% per year. *All dollar fi gures are in Canadian dollars. At press time, the exchange rate was C$ = US$. 38 JULY 2019 S I T E S E L E C T I O N w w w. m ic h - t a l e nt. s i t e In this excerpt from a forthcoming Site Selection white paper, Michigan’s state university presidents describe their regions’ distinguishing features. Talent for Tipping Point features. In the massive collections of the University of Michigan Library in Ann Arbor, there is a set of research guides whose contents span the globe, categorized under the label “Cultural Competence.” eir purpose? To “increase intercultural awareness and competencies for traveling abroad and living among culturally diverse populations.” Could that same principle apply to the states and regions within a country? Company leaders considering an investment have “cultural fi t” on their checklists. But what is the role of an area’s culture in attracting the employees those employers so urgently covet? Detroit Regional Chamber President and CEO Sandy Baruah in a January presentation noted that in December there were , open jobs in Michigan and , in metro Detroit (th among all metros in the nation for job postings), yet Michigan was one of only seven states that did not have a state-led goal to increase education attainment. at changed fast, as new Michigan Governor Gretchen Whitmer announced exactly that: a goal to increase Michigan’s postsecondary education attainment level to % by , as measured by the proportion of Michiganders with a college degree or high-quality certifi cate. It’s a proportion that the Indianapolis-based nonprofi t Lumina Foundation says the entire nation should attain. Lumina last year joined with the Michigan-based Kresge Foundation to announce the designation of seven new communities across the country — including metro Detroit — as Talent Hubs, joining others selected in . “ ese cities, along with others selected in . Dakota Pawlicki, Lumina’s strategy offi cer for community mobilization, says that in addition to by ADAM BRUNS adam.br uns @ site s ele c tion.c om MICHIGAN T ALENT: A WHITE P APER Legend has it that the U-M president spins the sculpture in Regents Plaza each morning to set the university in motion. The Cube is a Tony Rosenthal sculpture of interactive public art, and one of the many attractions that are part of the Ann Arbor culture. Photo courtesy of University of Michigan e bottom-up nature of urban innovation suggests that the best economic development policy may be to attract smart people and get out of the way.” — Harvard economist Edward Glaeser, “Triumph of the City” the Talent Hubs as exemplars, “we have a broader community network of close to communities that are all using cross-sector partnership for talent attraction, cultivation and retention. In Michigan, we have fi ve of those partners kind of scattered around the region — Detroit, Grand Rapids, Jackson County, Kalamazoo and Bay City. ey’re all part of this broader movement that Lumina is connected to that is strengthening local and regional partnerships to improve the sense of place and develop and cultivate the talent that these regions need to be economically prosperous.” Pawlicki also notes the important roles universities and community colleges play in defi ning those regions and their cultures. Sometimes it comes down to very specifi c tasks. During a national meeting in Detroit earlier this year, he found himself sitting with senior leaders from Macomb Community College, Henry Ford Community College and Wayne State University. e conversation turned to transportation infrastructure, and a leader from a local employer said, “Well, if you all could just provide me with employees who would show up on time, that’s really all I need.” “ ey started digging into it,” relates Pawlicki, “and realized that the fi rst bus that made it to that employer on the bus route was actually minutes after the start time for those employees. So, if you’re a citizen reliant on public transportation, there’s no possible way you could ever make it to work on time.” Working through the Detroit Regional Chamber, all the stakeholders were able to shift the bus route and timetable. at seemingly mundane accomplishment is a cultural asset too, says Pawlicki. “ at is what place-making is all about,” he says. “And higher education really has a key Three Distinguishing Features of: UNIVERSITY OF MICHIGAN, ANN ARBOR Ann Arbor is the home of a vibrant arts scene that fosters cultural appreciation and understanding and provokes conversations about challenging issues facing our society. Residents and visitors to the U-M campus and region enjoy and learn from the University Musical Society, a premier arts presentation organization; leading museums and galleries; world-class performing venues; and remarkable public art. Zingerman’s Delicatessen is hailed for empowering employees, positive business practices, giving back to the community — and outstanding food. The deli, founded in 1982, is now a destination with fans that span the nation. But what makes the Zingerman’s Community of Businesses truly special is its success in demonstrating that ethics, growth and citizenship are values that go hand in hand. The owners speak to students on our campus, and they’ve advocated for increases in the minimum wage. And I heartily recommend the corned beef reuben! The Big House and Michigan Athletics: On football Saturdays in the fall, Ann Arbor transforms, as more than 100,000 people pack into Michigan Stadium— the nation’s largest — for one of our region’s great traditions.I treasure Michigan Athletics’ ability to bring people together in the spirit of competition. Even more impressive are U-M student-athletes and coaches, who enhance our community through their service and ambassadorship. It’s not uncommon to see student-athletes visiting patients in our hospitals or volunteering with community service projects. — Mark S. Schlissel, President, University of Michigan, Ann Arbor S I T E S E L E C T I O N JULY 2019 39 w w w. m ic h - t a l e nt. s i t erole to play in that, through comprehensive regional talent acquisition and cultivation through multiple segments outside their traditional mission.” A Question for the Presidents What do the young and not-so-young professionals of the world want, and what do Michigan’s regions off er them? Might awareness of place and knowledge of culture drive talented individuals to feel at home and seek out more connections? Does an ice-cold Vernors ginger ale quench your thirst on a summer day at your cabin in the UP? One window to culture is through the prism of higher education. Each region has its own distinct layer, in a state where hundreds of colleges and universities play their own crucial roles in cultivating talent. ey also play major roles in forming regional culture in every sense of the word: the arts; industrial and agricultural heritage; ethos; corporate culture; and of course food, drink and language. So we asked the presidents of the member institutions of the Michigan Association of State Universities (MASU) to name three things that distinguish their university regions’ cultures. eir answers are featured on these pages. David Eisler, president of Ferris State University in Big Rapids, says in an aside, “ roughout my -year tenure as president of Ferris State University, I have witnessed the culture of the region evolve, change and grow to make West Central Michigan one of the most desirable places to live, work, study and play,” noting in particular the explosion of craft brewing in the area. at’s led to Ferris State developing an Industrial Chemistry degree with a fermentation science concentration, in addition to a Brewpub Management associate degree. Jeff Mason, CEO of the Michigan Economic Development Corporation, says the craft brewery revolution is a new angle on an old tradition. “It ties back to entrepreneurship and individuals and risk-taking,” Mason says. “Now you have individuals stating to grow hops and barley, the inputs to support that kind of industry. Someone once said you’ll see whether a community is creative or innovative in thinking about startups by looking for areas where individuals have opened up brewpubs. at is Three Distinguishing Features of: WESTERN MICHIGAN UNIVERSITY Western Michigan University is based in the home of the Kalamazoo Promise, a program that pays the college tuition of Kalamazoo Public Schools graduates — the largest program of its kind anywhere. Thanks to spectacularly generous anonymous donors in this community, Promise students are guaranteed tuition at Michigan colleges and universities. A large portion of the bachelor’s degrees earned by these students are earned at WMU — more than 40% of all bachelor’s degree received by the scholarship recipients, which is by far the most of any single institution in the state. The southwest Michigan region is a major pharmaceutical, life sciences and international business center. It is the original home of Upjohn Co. (now P zer), Stryker Corp., as well as many startup life sciences rms in the WMU Business Technology Research Park, which provides hundreds of internships for students and is an economic engine for the area. This region also can lay claim to Gibson Guitars, Checker Motors, Bell’s Brewery, Kellogg Co. and Whirlpool Corp. Many “Pure Michigan” Possibilities: Whether it’s riding on the 33.5-mile Kal-Haven Trail, paddleboarding Lake Michigan, running the Kalamazoo Marathon, catching a Broadway show at WMU’s Miller Auditorium, viewing an art installation at the University’s Richmond Center for Visual Arts or at ArtPrize in Grand Rapids, cheering WMU athletes in competition, being wowed by the talents in the Gilmore Keyboard Festival or in WMU’s award-winning jazz ensemble Gold Company, there are a variety of outlets for indoor and outdoor fun here. —Dr. Edward Montgomery, President, Western Michigan University, Kalamazoo Dr. Edward Montgomery, President, Western Michigan University 40 JULY 2019 S I T E S E L E C T I O N w w w. m ic h - t a l e nt. s i t ethe culture of entrepreneurship and the startup mentality.” He says it links back to another aspect of culture: the state’s innovation origins and evolution, from mining and timber through the automotive giants. “Also, when I think about the culture of Michigan, I think about us being a state that’s welcoming to a diverse group of individuals,” he says. “Again, think back to or years ago, with all the immigrants migrating to Michigan from Europe. en the automobile industry started growing, and immigrants started coming from the Southern states. ere were a large number of Dutch immigrants. And there is the Arab population that has grown in Dearborn and the Detroit area.” Mason also thinks Michigan’s culture intrinsically has “that strong connection to the water and the Great Lakes. Being home to more than % of all the freshwater in the world, it really defi nes us in many ways.” Crafting Neighborhoods Yes, if we’re going full circle, we must recognize that some of that fi ne freshwater fi nds its way into those craft beers. “One of the best craft breweries is Founders Brewing Company in Grand Rapids,” says Jim Napolitan, a resident of Howell, near Ann Arbor, and a maintenance leader for property management company First Martin Corporation, among whose largest tenants these days is Google. In describing brewery connections, he traces a microcosm of Michigan’s business ecosystem and heritage: “ e head brewer for Founders is my coworker’s son-in-law. And one of our favorite places to eat in Ann Arbor is a brewery called Grizzly Peak. Ann Arbor was a German town originally, and this place used to be a German restaurant called Metzger’s.” “I have one right down the street from where I live,” says Daniel J. Hurley, MASU’s CEO, of Old Nation Brewery in Williamston. “It’s not much to look at from the outside, but boy their beer is popular. It’s called M, named for the road we live on. I was just sipping it on the front porch of the Grand Hotel on Mackinac Island while at a conference.” Indeed, as anyone who’s visited a craft brewery can attest, there are few better ways to gather clusters of young talent. As of there were craft breweries in Michigan (up from around in ), good enough for No. in the nation, with one brewery for every . drinking-age adults. e Brewers Association Three Distinguishing Features of: FERRIS STATE UNIVERSITY Ferris State University boasts the nation’s largest undergraduate Welding Engineering Technology program and well-respected Centers for Welding Excellence and Advanced Manufacturing. Both of these programs are part of College of Engineering Technology, which we believe is the largest college of engineering technology programs in the country. Our partnerships with business and industry span West Michigan and beyond, with our graduates highly sought after by manufacturers throughout the region and across the nation. Since our acquisition in 2000 of Kendall College of Art and Design in Grand Rapids, we have become intricately woven into the art and design world of Grand Rapids. Born out of the visionary spirit of those who built the city’s furniture industry, KCAD continues its strong leadership in art and design education. A distinguishing feature of our region that garnering national accolades and attention is the University’s Jim Crow Museum of Racist Memorabilia. What began as a personal donation of 3,000 racist objects by faculty member Dr. David Pilgrim has grown to steward the nation’s largest public collection of racist memorabilia, now housing more than 12,000 artifacts. Designed to help visitors confront and challenge their views on race and relations, the museum has drawn worldwide attention and acclaim and continues the University’s founders’ vision of making the world a better place. — David Eisler, President, Ferris State University, Big Rapids David Eisler, President, Ferris State University Jeff Mason, CEO, Michigan Economic Development Corporation S I T E S E L E C T I O N JULY 2019 41 w w w. m ic h - t a l e nt. s i t ereports that those breweries in had an economic impact surpassing $ billion (No. in the country). “From my visits to the Grand Rapids/ Kalamazoo area, it’s among the regions in the country with the most vibrant and deep seated small brewery culture,” says Bart Watson, Ph.D., chief economist for the Brewers Association, the D.C.-based national organization of craft brewers. “On my last trip, my Uber driver from the airport immediately rattled off his favorite breweries.” Echoing MEDC’s Jeff Mason, Watson says Michigan is now the fourth-largest hop-producing state in the nation. And he attests to the role craft breweries can play in urban revitalization. “ ey can go into spaces that are zoned for manufacturing that have gone by the wayside during de-industrialization,” he says. “ ey bring foot traffi c to places that might not otherwise get foot traffi c. ey are community gathering places that take on aspects of their community in their values, marketing and branding. ey can have ripples in the economy.” MEDC’s Jeff Mason recognizes that. “One of the amazing programs we have is Public Spaces, Community Places, a crowdfunding program where we match dollars raised by citizens at the local level to help build dog parks, splash pads, walking and biking trails, and other projects. In Calumet in the UP, an old mining town, they took an old mining building and renovated it, and it’s now their local curling club. e community hangs out and curls and probably drinks a few adult beverages. “We have as one of our three pillars a focus on community vitality,” he says. “We clearly recognize the importance of creating vibrant areas where people want to live. If people want to live there, companies will be attracted because there’s a rich talent pool. Whether that entails the arts, or helping to create vibrant places, we’re all in.” is article is an excerpt from a white paper sponsored by Michigan Economic Development Corp. (MEDC). e complete white paper is available at mich-talent.site. Three Distinguishing Features of: MICHIGAN TECHNOLOGY UNIVERSITY The Keweenaw: Reaching into Lake Superior from the northernmost tip of Michigan’s Upper Peninsula is the Keweenaw (“kee-win-awe”) Peninsula. Home to hardwoods, sandstone cliffs, lake-effect snow and Michigan Technological University, the Keweenaw’s beauty is unparalleled. Michigan Tech’s Tech Trails and Recreational Forest spans 500 acres with 35 kilometers of trails, half of which is lighted during the winter months. Tech Trails has hosted U.S. and junior cross-country skiing championship races. Our epic summers are loved by Keweenaw stargazers and aurora borealis spotters. Sisu: On the northernmost slice of Michigan, in the center of Lake Superior, is the site of America’s rst mining boom. Those who call the Copper Country home live on a foundation of independence, innovation, and tenacity. Ask a local about Copper Country culture, and you’re likely to hear details of Cornish pasties and Finnish saunas. But they’ll also tell you about a thing called sisu (sih-soo), a Finnish term that can’t be fully translated. It’s grit. Determination. Resilience. Perseverance. It’s a form of courage that doesn’t come and go. The miners and loggers of the 19th century built their community on sisu, and it remains our way of life today. STEM Start-Up Incubator and Accelerator: Since it was formed in 2003 with funding from the Michigan Economic Development Corporation, the Michigan Tech Enterprise Corporation (MTEC) SmartZone has worked with hundreds of clients looking to form or grow technology companies. It recruits large- and medium-sized companies wanting to open satellite of ces near Michigan Tech — a fertile source of interns and skilled graduates — while using cost-effective facilities within a vibrant community. Ideas blossom into business opportunities, including Neuvokas, a rebar innovator named for the Finnish word meaning “inventive and creative,” and Craft Cultures, which propagates and cultivates indigenous Michigan bacterial strains for yeast used in beers and wines. — Dr. Richard J. Koubek, President, Michigan Technological University, Houghton Dr. Richard J. Koubek, President, Michigan Technological University 42 JULY 2019 S I T E S E L E C T I O N w w w. m ic h - t a l e nt. s i t eCloud, edge, hyperscale, colocation — whatever type you like, today’s data centers are evolving into the next utility, in every climate. Any way you slice it, the Nordics are cool, especially when it comes to cooling data centers. Yet hot places like Arizona — where they know the value of every drop of water — continue to attract server farms too. What gives? Let’s start with those Nordic nations. ey’re high-ranked in happiness. ey’re leaders in sustainability, innovation and economic strength. By most accounts, perhaps because of their chilly climate, they’re chill places to live. And because of that weather (as well as top-notch digital by ADAM BRUNS adam.br uns @ site s ele c tion.c om Finnish data center operator Ficolo is investing more than €50 million in converting a data center in the Helsinki metro area into a modern cloud delivery center to be named “The Air.” Rendering courtesy of Ficolo Running Hot & Cold D A T A CENTERS S I T E S E L E C T I O N JULY 2019 4344 JULY 2019 SI T E S E L E C T IO N infrastructure), they are cool places to invest in data centers. That must be what Google thinks, as it broke ground in November on its first data center in Denmark, capital of that warm fuzzy feeling known as hygge. “Whenever Google looks for a new place to build a data center, it’s important that the location has high-quality digital infrastructure and supports renewable energy production,” wrote Joe Kava, vice president, Global Data Centers for Google, in a November 2018 blog. “Denmark has both of these things and much more — which is why we’re investing €600 million to build a new data center just outside Fredericia, in western Denmark.” Fredericia will be Google’s fifth data center in Europe, joining sites in Ireland, Finland, the Netherlands and Belgium. Google owns and operates 14 data centers on four continents. Google is pursuing power purchase agreements (PPAs) in Danish renewable energy projects involving onshore wind, offshore wind and solar energy, he said. And in a place (Europe) where its data centers already use one-third less energy than a typical facility, Google’s new facility, he wrote, will be among the most energy-efficient in the nation, “taking advantage of advanced machine learning to make sure every watt of electricity counts.” Machine learning that takes place, no doubt, in that selfsame Google data center or one very much like it. How much energy do data centers consume? Megatons. In a November 2018 TEDWomen talk, Kate Brandt, Google’s sustainability officer, said Google’s 2017 total energy footprint was around 8 million megawatt hours (MWh). “That’s roughly equivalent to the energy used by the city of Atlanta in one year,” she told her audience. “And that’s just Google. Data centers worldwide use an estimated 200 terawatt hours each year. That is similar to the national energy consumption of some countries like Australia, and roughly 1% of global electricity demand.” Like the companies that provide them with power, data centers proliferate in order to serve growing areas, essentially becoming a utility themselves. Data centers still don’t create mega-jobs, but healthy numbers nonetheless. According to Copenhagen Economics, construction of the Fredericia data center will support 1,450 jobs per year through 2021 when it opens, and around 150-250 people are expected to be employed at the site in such jobs as computer technicians, electrical and mechanical engineers, catering and security staff. “At Google, we aim to support the communities that surround our facilities, and in the last few years we’ve invested almost €3.4 million in grants to initiatives that build the local skills base — like curriculum and coding programs, as well as educational support through teaching collaborations at area colleges,” Kava wrote. “We’ll also introduce initiatives like these in Fredericia.” Nestled in the Netherlands Other facilities continue to come online Northern Virginia early this year became the first data center market in the world to reach 1 gigawatt of wholesale capacity. No. 2? London, with 559 MW — approximately the amount of capacity still in planning and construction in Northern Virginia. Source: CBRE Data Center SolutionNext >