Global Engineering Professional Seminar Sean Valentine April 9, 2009

209Apr2009 Agenda Globalization –Trends –Opportunity or threat? –Preparation prior to graduation Shanghai overview Open discussion

309Apr2009 High-level globalization trends Manufacturing –1980s – Mexico, Hong Kong –1990s – China, eastern Europe –2000s – Brazil, Russia, India, continued eastern Europe migration –2010s? – Vietnam, Indonesia, Thailand, Turkey, northern Africa, South Africa Engineering –1980s – Hong Kong –1990s – Mexico, Singapore –2000s – China, India, eastern Europe, Brazil –2010s? – Asia capacity growth

409Apr2009 High-level globalization trends (cont.) Driving Force –Competitive cost structure –Proximity to customers »Customer support »Engineering »Manufacturing –Proximity to supply base

5 How does Delphi support its international customers? 09Apr2009

Delphi Electronics & Safety Regional Headquarters 09Apr20096

Delphi Electronics & Safety North American Principal Locations 09Apr20097

Delphi Electronics & Safety South American Principal Locations 09Apr20098

Delphi Electronics & Safety European Principal Locations 09Apr20099

Delphi Electronics & Safety Asia-Pacific Principal Locations 09Apr200910

1109Apr2009 Is globalization an opportunity or threat? Global engineering graduates: –Corporate peers / team members in your future company –Competition for open jobs Regional education, engineering applications and best- practices –Allow for diversity and continued evolution –Allow for total extinction of your local process »Example: High cost manufacturing labor can be optimized by moving to emerging market or implementing high-technology processes. ……depends on your mindset!

1209Apr2009 How does globalization affect Purdue graduates? Your company is using it Your company’s competition is using it How will your skills/education/experience influence your company’s decision-making? Future engineering graduates need to stand-out –Specialize (PhD) –Multi-functional (synthesize, problem-solve, multi-task) –Ability to create and lead a team toward a vision (long-term focus)

1309Apr2009 What can you do to prepare? Acknowledge the world’s changing environment Follow international business trends –Helps prepare for interviews and which industries/companies to target –Stay competitive Network with students outside your culture –Understand cultures of the emerging markets –Learn and appreciate differences (problem-solving methodologies)

1409Apr2009 What can you do to prepare? (cont.) Travel /Internship overseas –Purdue’s program with Shanghai Jiao Tong University Recommendations –The Post American World, Fareed Zakaria –Global Public Square, CNN 1pm EST Sundays –Spend 5 minutes a day analyzing major trends (periodicals/websites). High percentage of online articles have free access. »Business week »MIT Sloan Management Review »Harvard Business Review »McKinsey Quarterly

1509Apr2009 Globalization take-aways Awareness of latest trends Planning proactive steps to stay current

1609Apr2009 Shanghai – How to describe the growth? Pudong New Area (1988)

1709Apr2009 Shanghai – How to describe the growth? Pudong New Area (2005) (Same view)

1809Apr2009 Shanghai – How to describe the growth? Pudong New Area (2005)

1909Apr2009 Shanghai – How to describe the growth? Shanghai Footprint (2020)

2009Apr2009 Shanghai – 30 years of momentum 1978 Open Door Policy by Deng Xiaoping –“It does not matter whether the cat is black or white; as long as it catches the mouse, it is a good cat.” –Comments on whether China should turn to capitalism –Initiated the promotion of foreign trade and economic investment Shanghai designated as economic hub of China Fast Facts –19M population (320k yearly increase) –4,000 buildings over 18 stories –20% of the world’s high rise construction cranes –Designated growth areas for specific industries –Political structure supports growth

2109Apr2009 Present Shanghai Strong universities High government support for technology Higher national regulations on labor laws Melting pot of cultures –$$$ –Fashion –Arts / Theatre –Traditional culture –Youth movements (Green energy) –Energy, Excitement Wide gap between rich & poor Young engineers are renting apartments and buying cars for the first time.

2209Apr2009 Future Shanghai Manufacturing has already left Low-end engineering is moving west High-end engineering staying in Shanghai to utilize high- caliber students swarming to cities Regional HQ/hub for corporations (similar to NYC) Foreign investment is moving west

2309Apr2009 Open discussion Questions Concerns Experiences