DEGC Promotes Trade and Investment to German Companies

From: Peter Chapman, Executive Vice President, Business Development

The German American Chamber of Commerce hosted a trade mission here in Detroit last week, and I was there representing DEGC Business Development’s new focus on engaging foreign companies and helping local companies export goods and services more aggressively and strategically overseas.

The fifty-person delegation from Germany’s Niedersachsen region – home to Volkswagen, Continental and Airbus, as well as the world’s largest industrial trade fair, Hannover Messe – was led by the Minister of Economics for Lower Saxony, and largely consisted of executives from automotive/mobility companies, a key target sector for DEGC Business Development.

Through discussions and tours of the Lightweight Innovations for Tomorrow (LIFT) Institute, IAV Automotive Engineering, MCity and the UM Battery Lab, the delegates learned about future trends in mobility during their two-day visit. Ned Stabler, vice president for Economic Development at Wayne State University and TechTown CEO, and I also shared with them the history of Detroit and highlighted the exciting new projects underway in our city.

This was the first of several foreign development investment and export-related forums that DEGC will participate in or co-convene in 2017. It follows the highly successful trade mission to China we participated in last year with Mayor Duggan and Governor Snyder, where we inked a trade partnership agreement with the city of Shenzhen.

In addition to forging an important agreement that lays the foundation for further partnership of inbound investment and export activities, we came away from that trip with two or three viable business attraction leads.

We are keenly focused on China and will most likely do another trade mission this year. We’re also planning to support a second trade mission with Germany as well as one with Michigan Israel Business Bridge to assist in business to business export matchmaking.

With a sizeable grant from JPMorgan Chase, DEGC Business Development is promoting an understanding of global commerce throughout the organization and hiring the staff to enhance and manage our new global focus, which encompasses five key sectors:

  • Automotive/mobility, including companies like Sakthi Automotive Group, which is expanding and bringing new jobs to the city.
  • Advanced manufacturing
  • Food
  • Health and medical
  • Emerging industries, particularly tech companies like our most recent win, Microsoft.

Sandra Choi is our new Foreign Direct Investment Business Manager who will work on these endeavors.

In addition, we’ll continue to cultivate our relationship with companies such as Sakthi to learn what attracted them to Detroit, what keeps them here and what growing pains they might have so that we can learn and share their story with other foreign companies considering an investment in Detroit.

Strengthening Detroit’s brand in the global marketplace to promote international investment and local export opportunities is a key component in Detroit’s continuing resurgence. DEGC Business Development stands ready to engage foreign companies and help local companies in their export efforts.

 

 

 

DDA Seeks Developers for Two CBD Buildings

degc-detroit- growth-update_DDA Seeks Developers for Two CBD Buildings

The Downtown Development Authority (DDA) is seeking preliminary redevelopment proposals from qualified developers for two of the remaining unconverted, mixed-use buildings in Detroit’s Central Business District (CBD). Responses to the RFQP (Request for Qualifications and Proposal) are due by 1:00 p.m., August 31, 2016.The buildings are located on Broadway Boulevard between Gratiot and Grand River, adjacent to the Paradise Valley Cultural and Entertainment District. Built in 1900, 1326 Broadway is a 2,200-square-foot parcel containing a 5,563-square-foot, three-story structure. The second building, 1332 Broadway, is a 5,022-square-foot parcel containing a 15,090-square-foot, three-story structure. It was built in 1919. The properties will be sold “as-is, where-is” without any representation or warranty.The buildings are near parking, theatres, entertainment, restaurants, bistros and retail. Last month the DDA approved a comprehensive plan to redevelop nine properties in the Paradise Valley Cultural and Entertainment District. Other nearby areas are undergoing significant redevelopment, including Eastern Market, Corktown, Midtown and the East Riverfront District.

A mandatory pre-bid meeting and property viewing will be held at 1:30 p.m., August 3, 2016, at 1326 Broadway. Proposals are due at 1:00 p.m., August 31, 2016, and final selection is expected to take place in September. For a copy of the RFQP and additional information, go to DEGC New Projects RFPs (http://www.degc.org/contractors/new-project-rfps).

Moddie Turay

Executive Vice President – Real Estate

Manufacturing Day brings students into factories for a look around

 

Students from Detroit Randolph Career and Technical H.S. at the Henry Ford College  M-TEC Center
Students from Detroit Randolph Career and Technical H.S. at the Henry Ford College M-TEC Center

Manufacturing companies throughout the U.S. have unfilled jobs for skilled workers, and Manufacturing Day aims to tell that story to students and parents by opening up factories for a one-day visit. In Wayne County there were an approximate 820 students that visited 13 locations. DEGC’s business development staff played a significant role in partnering with local organizations and companies to organize the participation for nearly 650 of the students.

By 2025, nearly 3.5 million manufacturing jobs will become available across the U.S., but 2 million may be left unfilled if the skilled labor shortage goes unchecked. Manufacturing Day helps build awareness of modern manufacturing, its rewarding careers and its role as an economic driver, among young people and the larger community.

Manufacturers in Metro Detroit, supported by the U.S. Department of Commerce Manufacturing Council, hosted government officials, business and community leaders, and 30 schoolchildren for a Manufacturing Day kickoff event at the Michigan Science Center. Throughout the day local manufacturers and training facilities welcomed middle and high school students at their sites to see firsthand the safe, high-tech and innovative work environments awaiting those who pursue manufacturing careers.

Among the participating organizations were the Ford Dearborn Plant, Magna Seating, Detroit Diesel, Detroit Chassis, DEGC, Detroit Manufacturing Systems, Focus: HOPE, General Motors Detroit-Hamtramck Assembly Plant, Michigan Science Center, New Center Stamping, Shinola, Verndale Products, Plastic Omnium, Brose New Boston, Henry Ford M-Tec, Detroit Public Schools, SEMCA, Wayne RESA, and WIN – Workforce Intelligence Network.

Kenyetta Hairston Bridges
Business Development Manager

 

Tier One Supplier YFS Bringing Production and Research Facility to Detroit

freeway-cars

Outsourcing to Detroit is becoming more and more of a reality. Detroit Economic Growth Corporation (DEGC), working with the City of Detroit and Michigan Economic Development Corp., successfully facilitated a $1.3 million Michigan Strategic Fund Business Development Program performance-based grant to YFS Automotive Systems, a Chinese-based automotive supplier with U.S. headquarters in Gallatin, Tenn. The company expects to invest a total of $26.9 million in Detroit at a site that will be announced at a later date. 

YFS is planning to construct a 150,000 sq. ft. facility to design, test, and manufacture automotive fuel system components. It is expected to employ 50 people when it opens, and up to 160 at full capacity. The site will have room for a proposed 100,000 sq. ft. future expansion. YSF hopes to start production by July 2017.

Detroit Mayor Mike Duggan said, “This is an important step for YFS and Detroit. Manufacturing investments can provide good opportunities for Detroiters, and Detroit has great potential for attracting more investments and creating even more jobs in the future.”

Rodrick T. Miller, CEO of DEGC said, “This significant investment by a Chinese manufacturer underscores Detroit’s global advantage as a hub of automotive research, design, and assembly.”

In addition to the support from Michigan Strategic Fund, YFS also expects to apply for a tax abatement from the Detroit City Council. It is also requesting assistance from Detroit Employment Solutions Corporation (DESC) to help it develop its workforce.

Tracie Tillinger
Business Development Manager