ordidi jan13 2015 - ecwrpc · kickoff meeting with key constituents (complete may 2014) swot...
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WELCOME!
Oshkosh Region Defense Industry Diversification Initiative(ORDIDI)
Stakeholder Reporting SessionJanuary 13, 2015
Oshkosh Convention Center
Eric W. Fowle, AICPExecutive Director
Katherine AhlquistAssoc. Economic Dev. Planner
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ORDIDI Background
ORDIDI BackgroundOshkosh Corporation• Large defense system manufacturer (“OEM”) of ground-
based, wheeled tactical and heavy duty vehicles.
• Largest employer and company (by annual income) in Oshkosh area.
Layoff Announcements• Feb. & June, 2013: 950 employees
o 1.25% of total workforce / 3.93% of mfg. base• Summer 2014: 760 employees est.
o .84% of total workforce / 2.49% of mfg. base• Oct., 2014: 300 employees est.
Over 2,000 Employees!
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Regional Distributionof Dislocated Workers
(440 of first 950 employees laid off)
ORIDIDI Background
Department of Defense-Office of Economic Adjustment
• Quick response to assist region with diversification:
o 2013: $837,316 award from DoD-OEA (+10% match)
o 2014: $1,026,065 supplemental funding (+10% match)
o 2015: $120,000+ ? (not requested yet)
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ORIDIDI Background
Grant Purpose
• Provide outreach and assistance to regional manufacturers and small business impacted by the Oshkosh Corp. reduction.
• Develop and align regional economic & workforce strategies to:o Respond to reduced manufacturing output & mass layoffs; o Consider defense diversification opportunities; o Build on the region’s comparative advantages;
• Align and collaborate regionally as economic development entities.
Already Collaborative!
..and more!
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Oshkosh Region Defense Industry Diversification Initiative(ORDIDI)
Project Development & Implementation
• Collaborative efforts that focused on the impact region.
• Acknowledgement of broader spillover.
• Recognize external initiatives and entities.
Direct Supplier AssistanceDiversification / Resilience
Oshkosh Region Defense Industry Diversification Initiative(ORDIDI)
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Defense Supply Chain MappingIdentify / Diversify / Market
Direct Supplier Assistance
Oshkosh Region Defense Industry Diversification Initiative(ORDIDI)
Defense Supply Chain Mapping
Direct Supplier Assistance
Aerospace Cluster Study
UWO Start‐Up Accelerator Program
Regional Collaboration Charrette & Training
Oshkosh Region Defense Industry Diversification Initiative(ORDIDI)
Direct Supplier AssistanceDiversification / Resilience
Regional Collaboration Charrette & TrainingEc. Dev. Alignment & Action Plan
UWO Start‐Up Accelerator ProgramEntrepreneurship / Aviation Cluster Development
Aerospace Cluster StudyIdentify Assets / Opportunities
Defense Supply Chain MappingIdentify / Diversify / Market
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Direct Supplier Assistance
Supply Chain Direct AssistanceJanuary 13, 2015
Wil CoxWisconsin Manufacturing Extension Partnership
[email protected]‐335‐3203
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ORDIDI
The Supply Chain Direct Assistance component of the ORDIDI grant provides services to expand the capabilities of the manufacturers and small businesses (supply chain) impacted by the reduction in Oshkosh Corporation production and procurement.
The assistance will allow supply chain businesses to become more efficient, effective and competitive in defense and other diverse manufacturing markets.
Mission
To elevate the Wisconsin manufacturing economy to be the best in the world
Since 1998, WMEP has…
Served more than 3000 Wisconsin manufacturers
Generated more than $2.7 billion in reported economic impact
Helped create and save more than 15,658 jobs
About WMEP
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WMEP is Measured by Our Clients’ Impact
WMEP state and federal funding depends on the quantified impact and ROI each client reports
Last year nearly $196 million in impact was reported by the small and mid‐sized manufacturers we served
In the past five years, more than $1.2 billion in impact and more than 4,200 new and retained jobs have been reported by WMEP clients as a result of successful project work
WMEP Provides a Wide Range of Services
Advanced Talent ManagementMid‐level Leadership Development and Skills Certification
Customer Focused InnovationRapid Innovation and Growth / Marketing Needs
Systemic Continuous ImprovementLean, Quality, Six Sigma and Certification Needs
Extended Enterprise Management Developing Suppliers and Partners for Long‐term Growth
Sustainable Product and Process DevelopmentProfitable Conservation of Energy and Resources
Global EngagementExporTech™ and Global Growth Opportunities
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ORDIDI Direct Assistance TypesAssistance Type Deliverable Impact
Accelerate Lead Time
Reduction
Baseline assessment
Identify gaps
Improvement roadmap
Improved on‐time delivery
Improved quality
Reduced cost
MPX Constraint Modeling Model throughput scenarios
Eliminate process constraints
Dynamic resource allocation
Greater capacity
Reduced lead‐times
Productivity gains
Improved asset utilization
Quality Advantage Structured problem solving process
Corrective action process
Improved quality
Fewer defects
Enterprise Business
Transformation
Strategic repositioning
Strategic alignment
Improved market agility
Improved business strategy and
tactical execution
ISO 9100 Quality
Management System
Gap Analysis
Implementation Assistance
New markets
Improved quality
Lower costs
AS9100C Aerospace Quality
Management System
Gap Analysis
Implementation Assistance
New markets
Improved quality
Lower costs
ExporTech for Supply Chain Entry into International markets Business Growth
Market Diversification Assess core competencies
Market Research
Go‐to‐Market Strategy
Diversification
Business
•Bansi Nagji•Geoff Tuff
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ORDIDI Direct Assistance Process
1. ORDIDI Diagnostic – grant covers $2,700
2. ORDIDI Change Readiness – grant covers $2,700
3. ORDIDI Gap Analysis – grant covers $2,000 ‐ $4,000
4. ORDIDI Project Implementation – grant covers $10,000 ‐$20,000
ORDIDI Direct Assistance Stats as of 1/13/2015
ORDIDI goal is to assist 20 companies by 12/30/2015
60 companies contacted so far
Actively working with 12 companies
• 1 ‐ AS 9100
• 2 ‐ ISO 9001
• 2 ‐ Rapid & Accurate Quoting
• 1 ‐ Lean
• 3 – Customer Diversification
• 3 ‐ TBD
21 signed contracts
11 open proposals
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Continue recruiting and delivering assistance to the supply chain
Engage partners in identifying suppliers who need assistance.
Next Steps
Thank you!
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Defense Supply Chain Mapping
DISCDefense Industry Supply Chain
Jerry MurphyExecutive Director
January 13, 2015
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Work Program‐task elements
1. Assemble advisory team– 18 member team– Regular meetings– Project management changes in Jan. 2015
2. Aggregation of Supply Chain– To build from a large universe of
suppliers…Evaluation of public resources/subscribed/purchased data sets
– To build from an organic process that starts with the advisory team.
• Pilot group of suppliers to support directory build out, data fields, site utilities.
DISC Work Program
3. Web design/build/test/launch– Infinity Technology work is progressing
– Integration with other directories and communications utilities have been added as a design feature for Infinity…quoting that work.
– Coalesce graphic treatments, web site navigation enhancements, promotional materials for recruitment and for events in design, waiting on content
– Advisory team input and pilot end‐user/supplier input as next step.
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DISC Work Program
4. Events/promotion– Existing market/industry cluster initiatives targeted
for content• Water Council
• F&B
• MWERC
• Aviation
• Energy
– Initial agenda inclusion for Manufacturing 1st
– Stand alone event by invitation to defense supplier population
T2. Supplier Research –Organic assembly of
suppliers
T 4. Event
Second wave effort with promotions, PR, events
T2. Supplier Research –Universe of all suppliers
T 3. Directory build out, including creative, PR
T1‐T4. Project Mgmt and contractors
Advisory team
T 4. Promotions, PR, events
T 4. Event
June, ‘14
Dec. ‘14
T1. Advisory team
Continuing workAdvisory team
Advisory team
Continuing work
Continuing work
Continuing Work
Concurrent Work Tasks
June ‘15
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Aerospace Cluster Study
Aerospace Cluster StudyPREPARED BY: MERIDITH JAEGER, CHAIR
AVIATION DEVELOPMENT COMMITTEE
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Aerospace Cluster TimelineJuly 2009 – AeroInnovate hosts first Pitch & Mingle
September 2009 – Chamco creates Aviation Development Committee to support efforts to grow Wittman Regional Airport
March 2013‐Winnebago County & City of Oshkosh purchase 80 acres adjacent to Wittman Regional Airport for development
September 2013 – City of Oshkosh awarded $2M EDA grant to fund infrastructure for Oshkosh Aviation Business Park
May 2014 – Kickoff Aerospace Cluster Study with Explorer Solutions
August 2014 – Add Fond du Lac & Outagamie County airports to project
September 2014 – Oshkosh Aviation Business Park Groundbreaking
July 2015 – Explorer Solutions Aerospace Cluster Study Complete (anticipated)
November 2015 – Oshkosh Aviation Business Park infrastructure complete (anticipated)
Aerospace Cluster StudyExplorer Solutions – Phase 1Research & identify innovative sustainable aerospace, aviation & defense concepts and niche projects.◦ Kickoff meeting with key constituents (Complete May 2014)
◦ SWOT ‐Winnebago, Outagamie & Fond du Lac county airports (Complete August 2014)
◦ Focus Groups/Interviews with local industry leaders, strategic partners, airports and community leaders (Complete August 2014)
◦ Benchmark similar airports in North America based on runway length, use, demographics, economic regions, etc. (Complete August 2014)
◦ Recommend and present four (4) niche clusters to Aviation Cluster Study Committee (Complete September 2014)
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Aerospace Cluster StudyExplorer Solutions – Phase 1 cont’dPrioritize/select niche cluster(s)◦ Committee discussion to prioritize recommendations (Complete September 2014)
◦ Gather feedback via stakeholder survey (Complete September 2014)
◦ Committee selects two (2) niche clusters (Complete December 2014)◦ Short‐term solution
◦ Longer‐term solution
Validation of chosen niche clusters ◦ Aerospace industry leaders
◦ Strategic partners
◦ State/federal/international levels
Final Report – Phase 1 ◦ Final recommendation to committee
Aerospace Cluster StudyExplorer Solutions – Phase 2Create Steering Committee(s) ◦ Identify key partners
◦ Recruit steering committee members
◦ Hold first steering committee meeting
◦ Present preliminary report following steering committee meeting(s)
Advanced Cluster Definition◦ Further define selected cluster(s)
◦ Write business plan
◦ Second steering committee meeting(s)
◦ Letters of interest
Presentation of final report
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Thank you!
UWO Start‐Up Accelerator Program
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Prepared by: Elizabeth Hartman, UW‐Oshkosh Business Success Center
Comprehensive program designed to accelerate the success of start‐up companies which have the potential for significant growth
TechStars founded in Boulder, CO in 2007
417 graduate companies: 322 active, 49 acquired, 46 failed (89% success rate)
Jobs created: 3422
Follow on funding round: nearly $2,000,000 per company
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Diversify economy and create jobs Entrepreneurs create jobs 2010 Kauffman Foundation Study
“Grow your own” economic development strategy
Proven TechStars accelerator model
Start u
Recommended by feasibility study conducted by Chamco and SBDC in 2012 Focus on growing businesses in aviation, advanced materials, advanced manufacturing, information technology and clean tech (also consistent with conclusions of Targeted Industries Study completed in 2013)
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We don’t have one and we should 3rd largest population center in the state – no accelerator program, limited comprehensive program for entrepreneurs
Significant supporting assets UW‐Oshkosh and FVTC AeroInnovate –Wisconsin Aerospace Partners EAA/Wittman Regional Airport/Aviation Business Park Angels on the Water Relationships with important players in start‐up space in Wisconsin
AeroInnovate helps aeroinnovators from across the globe who are starting and growing aero‐related businesses and bringing related new technologies
to the marketplace.
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Workshops/Forums Investor Roundtable Pitch & Mingle One‐on‐One Connections Key Partnerships
12 week intensive mentoring program
2 classes a year of 4‐6 companies
Fall VenturExcel class; spring AeroInnovate class
Opportunity for up to $30,000 seed financing Expertise
Successful entrepreneurs
Business leaders
Service providers – marketing, IT, legal, accounting
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Access to UW Oshkosh resources Faculty
Student interns
Physical space with amenities
Opportunities to pitch to multiple investors AeroInnovate launch at Pitch and Mingle event at AirVenture
Angels on the Water
AeroInnovate class will have booth space at AirVenture
Vision is for the accelerator program to be located in a new facility planned for the Oshkosh Aviation Business Park
This facility will also provide services and resources recommended by the Aerospace Cluster Study underway
House other entrepreneurs in the region Provide shared space, common services, access to service providers
Launch businesses into the park and the region – build an aerospace/aviation focused business cluster
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UW Oshkosh/Business Success Center to provide critical resources and oversight
Winnebago County: financial contribution – land purchase for park and construction of airport infrastructure to support the park
City of Oshkosh: financial contribution – land purchase for park, creation of TIF to support accelerator facility costs
Working Groups with representatives from FVTC, EAA, airport tenants, GO‐EDC
Economic Development Administration: $2,000,000 Public Works grant to support park infrastructure
Department of Defense, Office of Economic Adjustment: over $1,000,000 towards aerospace cluster development and accelerator program planning efforts
Wisconsin Economic Development Corporation: Has pledged financial support for both program and facility
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Financial support and budgets prepared Best practices studied Needs survey completed Program metrics chosen Application form completed Curriculum developed Assistance from gener8tor secured
Global Accelerator Network application submitted
Accelerator Director and AeroInnovate Director searches underway
Service providers recruited Key mentors recruited EAA and Space Angels assistance confirmed Preliminary facility plans completed Temporary space secured
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October 2013‐June 2015: accelerator planning, facility design work and fundraising
Spring 2015: accelerator and AeroInnovate directors hired
April 2014‐August 2015: aerospace cluster study November 2015: Infrastructure for park completed Spring 2015: AeroInnovate accelerator class, launch at
Pitch & Mingle event at AirVenture Fall 2015: VenturExcel accelerator class Spring 2016?: Begin construction on support facility
Help businesses create jobs and diversify the economy
Build aerospace/aviation focused business cluster
Strengthen entrepreneurial ecosystem of NEW –self‐sustaining “evergreen” program
Provide knowledge sharing opportunities for UWO faculty/students and entrepreneurs
Attract more capital, entrepreneurs, faculty, students and businesses to our region and state
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Regional Collaboration Charrette & Training
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Regional Collaboration CharretteBuilding regional collaboration - driving economic growth,
diversification and local resilience.
David Beurle and Dr. Jeffrey SachseFuture iQ Partners
Mass Lay‐off aversion strategy
Charrette Stakeholders Workshop
Nov 13
Supported by:Heart of Wisconsin Business & Economic Alliance
Community Foundation of South Wood County
Research existing regional
collaboration patterns
and economic diversification
options
IMPLEMENTATION
Regional Collaboration Charrette – July 2014 to Feb 2015
Network Mapping Platform
Industry Diversification
Option / Strategy
Regional Collaboration Think Tank
Dec 8 and 9
Regional Stakeholders
Summit
13 Jan 2015
Regional Collaboration Strategy and Action Plan
Examine futurecollaboration and diversificationscenarios;
Develop draftregional
action plan.
Outline plan for action ‐including convening
stakeholders; Education
and training
OUTPUTSPLANNINGRESEARCH
Ecosystem survey research
report
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Regional Collaboration ‘Think‐Tank’
Dec 8 ‐ 9 Sessions
Building a picture of existing collaboration and information flows within the ecosystem
Ecosystem refers to the economic and workforce development stakeholders in the target region
Ecosystem Network Mapping Survey
WE ARE HERE
Regional Collaboration Charrette – PHASE 2 (Dec 2014)
Understanding existing industry diversification
options and research of case studies
Regional Stakeholders
Session
13 Jan
Ecosystem Collaboration
and perspectives survey
Industry diversification
analysis and case study research
Business Perspectives –Impact and collaboration
survey
Charrette Stakeholders Workshop
Nov 13
Mass Lay‐off aversion strategy
Supported by:Heart of Wisconsin Business & Economic Alliance
Community Foundation of South Wood County
Regional Collaboration Charrette – July 2014 to Feb 2015
Network Mapping Platform
Industry Diversification
Option / Strategy
Regional Collaboration Strategy and Action Plan
OUTPUTS
Ecosystem survey research
report
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Networking Break!
February, 2015
Public/Media Report and Special
Guest Speaker
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Oshkosh Regional Defense Industry Diversification InitiativeAction PlanningJanuary 13, 2015
Action Plan Formation• Survey analysis provided strategic direction
– Formation of principal axes
• Industry diversification research presented array of potential approaches
• Regional Collaboration Think Tank developed plausible actions
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Action Plan Structure• Report provides a detailed account and analysis
of the outcomes of the two-day Regional Collaboration Think Tank
• Focus concentrated on the development of a series of strategic recommendations
• Layoff aversion strategy also developed and articulated.
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Recommendations – Industry Diversification
• Develop a Network of Driver Industries.
• Develop an Industry Diversification Leadership Group.
• Explore the formation of a Centers of Excellence network to support innovation in the region.
• Support and expand the recommended development of an Aviation-Based Additive Manufacturing industry cluster.
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Recommendations – Supply Chain and Market Development
• Catalogue and expand upon existing supply chain mapping efforts.
• Build a local supply chain consortium.
• Develop a singular database tracking structure for the region.
• Create a regional playbook that outlines the key actions and resources needed to execute a successful supply chain strategy.
Recommendations – Economic Development Ecosystem Collaboration
• Develop an online-based, GIS-enabled organization directory.
• Conduct an economic development strategies mapping exercise.
• The region’s leaders should initiate a conversation around shared economic development resources and funding.
• Develop a regional economic development marketing strategy.
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Recommendations – Workforce Development Ecosystem Collaboration
• Begin exploration options to create training curriculum to support aviation cluster.
• Connect with regional young professional organizations to develop outreach strategy to promote the benefits of living in the area.
• Continue to develop regional strategy to pursue state funding, such as Wisconsin Fast Forward grants.
• Work with the region’s community foundations to expand incentive programs.
Recommendations – Workforce Development Ecosystem (cont’d)
• Consider the adoption of a county-level 0.5 percent education sales tax.
• Create a tuition-free zone attached to the region’s technical colleges and universities.
• Create a regional “Partners in Education” organization to share case studies and best practices.
• Support the New North Career Pathways pilot program.
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Other Sources of Recommendations
• Survey analysis details the application and expansion of the Fox Valley Network Mapping Platform.
• Industry diversification options paper details additional recommendations in Advanced Manufacturing, Information Technology, and Aerospace/Aviation.
• Additional recommendations will come through other ORDIDI activities and response to the Action Plan.
Today’s Task
• In order to advance the work presented here, we must collectively identify and prioritize a smaller number of recommendations for immediate action.
• One recommended action from each work group will be selected.
• Resources must further be attached to each selected action.– Recommendations will also be targeted for future DoD –
OEA funding.
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Selection Criteria
• Selected recommendations must be able to demonstrate significant progress within an eighteen month period.– Progress supports momentum.
• Recommendations should be prioritized based on the extent to which they advance either regional collaboration or industry diversification.
• Participating organizations must also be named.– Do we have the right parties at the table?
• Expected impact and feasibility should also be considered.
Recommended Priorities
Recommendation Impact Rank Feasibility Rank Priority
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Next Steps
• Who does what?
• Do we have the right resources? Who could support? Who could champion?
• How do we measure success?
• How do these actions tie into other work in the region? Do we need a more comprehensive regional strategy?
The Role of ECWRPC
• Should serve as regional convener to coordinate future action.
• Needs to maintain momentum by informing partners and facilitating conversations.
• Will be responsible for ensuring an inclusive and participatory process.
• Should identify a series of actions to fund through DoD – OEA projects or other federal sources within the next six months with implementation within eighteen months.
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T H A N K Y O U !
..and more!