1. Engineering Globalization Engineer’s Week Dinner 2006 Dr. Timothy Greene

2. Tonight’s Topics: 1.Impact of Engineering Globalization on Southwest Michigan 2.College of Engineering & Applied Sciences accomplishments and direction

3. Engineering Globalization Thesis: Engineering design has become a global commodity Impact: Michigan’s engineering work can be sent anywhere in the world Engineering work from anywhere in the world can be sent to Michigan

4. Value of Technology 85% of measured growth in U.S. income per capita is due to technology change -Rising Above The Gathering Storm

5. Some Worrisome Indicators Only 1 of 16 countries polled listed the US as the most attractive place in the world to “lead a good life” Cost: For the first time, this most capable high-energy particles accelerator on Earth will, beginning in 2007, reside outside the U.S. - Rising Above The Gathering Storm Engineers1 US = 11 China Chemists1 US = 5 India

6. The U.S. is a net importer of high-technology products. US global high-technology exports have fallen from 30% to 17% over 20 years US trade balance in high-technology manufactured goods shifted from $33 billion (1990) to -$24 billion (2004). Worrisome Indicators: High Technology -Rising Above The Gathering Storm

7. Worrisome Indicators: Chemical Companies Chemical companies closed 70 facilities in 2004 and have tagged 40 more for shutdown. - Rising Above The Gathering Storm US = 1 China = 50 All Others = 69

8. About 1/3 of 4 th graders and 1/5 of 8 th graders lacked the competence to perform basic math computations. US 12 th graders recently performed below the international average for 21 countries on a general test of mathematics and science In 1999, only 41% of US 8 th graders received instruction from a teacher who specialized in mathematics; lower than the international average of 71% Worrisome Indicators: Math & Science Skills -Rising Above The Gathering Storm

9. Worrisome Indicators: Low-wage vs. High-wage employers -Rising Above The Gathering Storm 44% of new Jobs 29% of new Jobs Low wageHigh wage

10. Worrisome Indicators: World-wide Undergraduate Degrees in Science and Engineering -Rising Above The Gathering Storm Japan 66% China 59% Germany 36% US 32%

11. Worrisome Indicators: 2004 Graduates of Engineering -Rising Above The Gathering Storm China US India

12. National Academy of Engineering & Institute of Medicine Committee on Prosperity in the Global Economy of the 21 st Century National Academy of Science Change: 10 actions federal policy makers could take Enhance science & technology in the US Compete, prosper, and be secure in “Global Community” Strategy for implementation -Rising Above The Gathering Storm

13. Committee Findings 1.Report: Rising Above the Gathering Storm – Energizing and Employing America for a Brighter Economic Future 2.Having reviewed trends in US and abroad, the committee is concerned that scientific and technical building blocks of economic leadership are eroding at a time when many other nations are gathering strength -Rising Above The Gathering Storm

14. Committee Findings (cont.) 3. The US must prepare to preserve its strategic and economic security. Because other nations have the competitive advantage of a low-wage structure, the US must compete by optimizing its knowledge- based resources, particularly in science and technology, and sustain the most fertile environment for new and revitalized industries and the well- paying jobs they bring. -Rising Above The Gathering Storm

15. Committee Recommendations 10,000 Teachers, 10 Million Minds, and K-12 Science and Mathematics Education Recommendation A: Increase America’s talent pool by vastly improving K-12 science and mathematics education -Rising Above The Gathering Storm

16. Committee Recommendations Sowing the Seeds Through Science and Engineering Research Recommendation B: Sustain and strengthen the nation’s traditional commitment to long-term basic research that has the potential to be transformational to maintain the flow of new ideas that fuel the economy, provide security, and enhance the quality of life. -Rising Above The Gathering Storm

17. Committee Recommendations Best and Brightest in Science and Engineering Higher Education Recommendation C: Make the U.S. the most attractive setting in which to study and perform research so that we can develop, recruit, and retain the best and brightest students, scientists, and engineers from within the U.S. and throughout the world. -Rising Above The Gathering Storm

18. Incentives for Innovation and the Investment Environment Recommendation D: Ensure that the U.S. is the premier place in the world to innovate; invest in downstream activities such as manufacturing and marketing; and create high-paying jobs that are based on innovation by modernizing the patent system, realigning tax policies to encourage innovation, and ensuring affordable broadband access Committee Recommendations -Rising Above The Gathering Storm

19. Off-shoring Issues Is it simply moving work to where these are: Cheaper hourly costs Cheaper benefit costs Fewer safety requirements Fewer union problems Fewer taxes Or is it moving work to where: Customer growth is Diversification 24/7 service Highly motivated & trained work force

20. Off-shoring Truths Companies have long ago dropped national loyalties Board of Directors have become truly internationalized Growth markets are in developing countries The new “best” universities are not in the U.S. Companies that offshore are growing in both revenues and profits faster than those who have not

21. Companies that offshore have seen Increased customer responsiveness (closer to the customers) Increased quality Decreased material costs(closer to the suppliers) Nearly every process can be bought offshore Off-shoring Truths (cont.)

22. What can not be off-shored Face to face customer service Face to face supplier relationships On site design and engineering Construction engineering Consulting on site Sales engineering (on site problem solving)

23. A New Approval to Off-shoring Off-shore companies are buying U.S. companies to get the face to face relationships Tata Technologies (2,000 Indian engineers – automotive design) recently bought Incat International (700 U.S. engineers – Novi, Michigan) currently having 100 engineers for U.S. office -Business Week 1/30/06

24. Proctor & Gamble CEO Alan Lafley wants 50% of all new Proctor & Gamble products to come from outside U.S. by 2010 versus 20% now. -Business Week 1/30/06

25. 19,000 back office process workers spun off into GenPact in 2004 saved 30 to 40% in back office process labor costs after the first year. -Business Week 1/30/06 General Electric

26. 60,000 employees in 70 nations need HR services (records, payroll, benefits, etc.) Outsourced services to Convergys Corp. and expect to save 20% in processing costs in year one and 30% in year two -Business Week 1/30/06 DuPont

27. Areas where companies are looking to outsource work process Manufacturing $170 Billion Logistics & Procurement $179 Billion Info Tech $90 Billion Finance & Accounting $14 Billion Human Resources $13 Billion Engineering $27 Billion Analytics $12 Billion Customer Care $41 Billion -Business Week 1/30/06

28. Five Offshore Practices That Pay Off: 1.Go offshore for the right reasons 2.Choose your model carefully 3.Get your people on board 4.Be prepared to invest time and effort 5.Treat your partners as equals -Business Week 1/30/06

29. Leading Companies in the Off-shoring – Outsourcing World -Business Week 1/30/06 Business Services Software Development Call Centers

30. To Where Are Companies Outsourcing? Region Central and Eastern Europe China and Southeast Asia Latin America & Caribbean Middle East & Africa Market Size $3.3 Billion$3.1 Billion$2.9 Billion$425 Million Top- Ranked Countries Czech Republic, Bulgaria, Slovakia, Poland, Hungary China, Malaysia, Philippines, Singapore, Thailand Chile, Brazil, Mexico, Costa Rica, Argentina Egypt, Jordan, United Arab Emirates, Ghana, Tunisia Up-and- Comers Romania, Russia, Ukraine, Belarus Indonesia, Vietnam, Sri Lanka Jamaica, Panama, Nicaragua, Colombia South Africa, Israel, Turkey, Morocco -Business Week 1/30/06

31. Outsourcing to Africa South Africa has over 500 call centers Lufthansa General Electric Cairo-based Xceed Contact Center Microsoft General Motors Oracle Carretour -Business Week 1/30/06

32. Engineering Research and America’s Future: Meeting the Challenges of a Global Economy (2005) http://www.nap.edu/books/0309096421/html/index.html

33. Engineering Research: The Engine of Innovation American success has been based on the creativity, ingenuity, and courage of innovators, and innovation will continue to be critical to U.S. success in the twenty-first century. - -Engineering Research and America’s Future

34. How Do You Slow Off-shoring? Innovation! Those entities lead in innovation control the market

35. Examples of Recent Innovation Transistors Integrated Circuits Computerization Mass communication Cell Phones & Internet Electromagnetic Radiation Radios & X-rays, Fiber Optics, Cell Phones, MRI, Micro Waves, etc.

36. U.S. Status in Innovation The US must be an innovation-driven nation that can capitalize on advances in life sciences, physical sciences, and engineering The US risks becoming a consumer of innovations developed elsewhere rather than a leader. - -Engineering Research and America’s Future

37. Trends in Innovation 1.A large and growing imbalance in federal research funding engineering & physical science vs. biomedical & life science 2.Increased emphasis on applied R&D in industry and government-funded research at the expense of fundamental long-term research - -Engineering Research and America’s Future

38. 3. Growing uncertainty about the ability of the US to attract and retain gifted science and engineering students from abroad 4. Erosion of the engineering research infrastructure due to inadequate investment over many years Trends in Innovation (cont.) - -Engineering Research and America’s Future

39. Imbalance in the Research – Innovation Portfolio $ Life Science Research $ in Physical Science Research $ in Engineering Research 1982$7 Billion$4.2 Billion$5 Billion 2002$25.5 Billion$4.8 Billion$8 Billion

40. Recommendations 1.The federal R&D portfolio be enhanced by increasing funding for research in engineering & physical science 2.Long-term basic engineering research should be reestablished as a priority for US industry. The federal government should design and implement tax incentives and other policies to stimulate industry investment in long-term engineering research - -Engineering Research and America’s Future

41. 3. Federal & state government and industry should invest in upgrading and expanding laboratories, equipment, and information technologies and meeting other infrastructural needs of research universities and schools of engineering to ensure that the national capacity to conduct world-class engineering research is sufficient to address the technical challenges. 4. Considering the importance of technological innovation to the nation, a major effort should be made to increase participation of US students in engineering. Recommendations (cont.) - -Engineering Research and America’s Future

42. 5. All participants and stakeholders in the engineering community should place higher priority on encouraging women & underrepresented minorities to pursue careers in engineering. 6. A major federal fellowship-traineeship program in strategic areas (e.g. energy; info-, nano-, and biotechnology; knowledge services, etc.) should be established to ensure that the supply of next generation scientists and engineers is adequate. Recommendations (cont.) - -Engineering Research and America’s Future

43. 7. Immigration policies and practices should be streamlined to restore the flow of talented students, engineers, and scientists worldwide into US universities and industry. 8. Links between industry and research universities should be expanded and strengthened. 9. Multidisciplinary discovery-innovation institutes should be established on the campuses of research universities to link fundamental scientific discoveries with technological innovations to create products, processes, and services. Recommendations (cont.) - -Engineering Research and America’s Future

44. The Final Solution In a global, knowledge-driven economy, technological innovation – the transformation of knowledge into products, processes, and services – is critical to competitiveness, long-term productivity growth, and the generation of wealth. - -Engineering Research and America’s Future

45. Highlights of what the College of Engineering has accomplished and the college’s direction

46. CEAS Vision A scholarly community dedicated to excellence through student-centered education and research emphasizing professional practice in engineering and applied science Robo-Bronco

47. Number of Bachelor Graduates

48. Master’s Enrollment *CS Moved to CEAS

49. Ph.D. Enrollment *CS Moved to CEAS

50. Research Award Dollars

51. CEAS Cornerstones EngagementInnovation GlobalizationLeadership

52. Engagement Definition Experience based learning Involving students with their profession as they learn Faculty members and staff who are active in their professions Purpose Produce job ready graduates with the ability to grow in their profession

53. Examples of Engagement Senior Design Conference Real world examples and applied problems used in classes Student design-build competitions Sunseeker – 6 th in the Nation SAE Formula One Race Car ASCE Concrete Canoe AIChE Chemical Car

54. Examples of Engagement (continued)

55. CEAS Learning Communities Cooperative Education & Internships Student and faculty research Student and faculty Professional societies Faculty leadership in local, regional, and national positions Student conferences – National and international conferences

56. Examples of Engagement (continued) Laboratory extensive curricula Volunteer projects Habitat for Humanity Rockets program Intel Science and Engineering Fair (hosted) Etc. Industry plant tours Industry visits to campus Faculty and alumni mentoring NSF REU programs

57. Innovation Definition The discovery, application, and dissemination of new knowledge Purpose Move the profession and society forward by providing engineers, scientists and technologists with new capabilities Opportunity to add resources to the college. Faculty development assuring we are technically current

58. Technology Curve Time to Technology Maturity Basic ResearchApplied ResearchTechnology Transfer ( Application of New Technology ) Use (Deployment, Training, & Service) Technology Maturity Level CEAS

59. Research Foci Advanced Vehicle and Development Simulation Product Design and Manufacturing Life Sciences and Biotechnical Engineering Education

60. Globalization Definition If engineering knowledge can be digitized, it can be moved and performed anywhere in the world. Companies now look for engineering and technology solutions world wide. Purpose Our graduates must be prepared to work in a global engineering and applied sciences industry. Our faculty work in global disciplines.

61. Examples of Globalization How we might teach it Certificate in globalization Faculty-led tours Study abroad Faculty and student exchanges (visiting scholars) International conferences (attended or sponsored) Examples within classes Twinning University to university agreements Foreign language minors

62. Leadership Definition Excellent communication skills Excellent teamwork skills Ability to lead others and be led by others Ability to lead at work, in the profession and in the community Excellent professional ethics and morals Understand the issues including: environmental, economic, social, political, safety, and diversity

63. Leadership Purpose To graduate engineers, technologists, and applied scientists who are and will continue to be leaders in their profession and community. To ensure our faculty continue to be leaders in their profession and community.

64. CEAS Katrina Fund Raiser

65. CEAS Mission To educate our learning community for life-long excellence in responsible professional leadership. (Engagement and Leadership) To increase knowledge through collaborative discovery, integration, application, and teaching. (Research) To serve as a resource and partner to our constituents. (Globalization, Leadership, Research, and Engagement) To prepare job-ready graduates for the global market. (Engagement and Leadership)

66. Committee Recommendations and Actions (cont.) Action A-1: Annually recruit 10,000 science & mathematics teachers by awarding 4-year scholarships and thereby educating 10 million minds Action A-2: Strengthen the skills of 250,000 teachers through training and education programs at summer institutes, in master’s programs, etc. Action A-3: Enlarge the pipeline by increasing the number of students who take AP and IB science & mathematics courses. -Rising Above The Gathering Storm

67. Committee Recommendations and Actions (cont.) Action B-1: Increase the federal investment in long-term basic research by 10% a year over the next 7 years. Action B-2: Provide new research grants of $500,000 each annually, payable over 5 years, to 200 of our most outstanding early-career researchers. Action B-3: Institute a National Coordination Office for Research Infrastructure to manage a centralized research-infrastructure fund of $500 million per year over the next 5 years. Action B-4: Allocate at least 8% of the budgets of federal research agencies to discretionary funding. -Rising Above The Gathering Storm

68. Committee Recommendations and Actions (cont.) Action B-5: Create in the Department of Energy (DOE) an organization like the Defense Advanced Research Projects Agency (DARPA) called the Advanced Research Projects Agency-Energy (ARPA- E). Action B-6: Institute a Presidential Innovation Award to stimulate scientific and engineering advances in the national interest. -Rising Above The Gathering Storm

69. Committee Recommendations and Actions (cont.) Action C-1: Increase the number and proportions of US citizens who earn physical-sciences, life-sciences, engineering, and mathematics bachelor’s degrees by providing 25,000 new 4-year competitive undergraduate scholarships each year to US citizens attending US institutions. Action C-2: Increase the number of US citizens pursuing graduate study in “areas of national need” by funding 5,000 new graduate fellowships each year. Action C-3: Provide a federal tax credit to encourage employers to make continuing education available (either internally or through colleges and universities) to practicing scientists and engineers. -Rising Above The Gathering Storm

70. Committee Recommendations and Actions (cont.) Action C-4: Continue to improve visa processing for international students and scholars Action C-5: Provide a 1-year automatic visa extension to international students who receive doctorates, or the equivalent in science, technology, engineering, mathematics, or other fields of national need at qualified US institutions to remain on the U.S. to seek employment. If these students are offered jobs by U.S.-based employers and pass a security screening test, they should be provided automatic work permits and expedited residence status. -Rising Above The Gathering Storm

71. Committee Recommendations and Actions (cont.) Action C-6: Institute a new skills based, preferential immigration option. Action C-7: Reform the current system of “deemed exports” -Rising Above The Gathering Storm

72. Action D-1: Enhance intellectual-property protection for the 21 st century global economy Action D-2: Enact a stronger research and development tax credit to encourage private investment in innovation Action D-3: Provide tax incentives for U.S.-based innovation Action D-4: Ensure ubiquitous broadband Internet access. Committee Recommendations and Actions (cont.) -Rising Above The Gathering Storm