Archive for March, 2004

Going to India?

Tuesday, March 30th, 2004

By Dean Whittaker

This is the first of a three-part narrative of my experience of going to India to attend the Global CoreNet function to he held in Mumbai, India March 22-24.

So, why would I travel half-way around the world to India to hear a keynote speaker from Ann Arbor, Michigan, talk about China? Curiosity and a desire to learn is my short answer. I am curious to see first hand what is happening in India relative to the much-talked-about outsourcing of jobs and I hope to learn about another part of the world – I’m thinking globally. 

In West Michigan, we have had a 20% decline in manufacturing employment in the past three years while at the same time experiencing a 60% increase in productivity. During a tour of a local auto-parts plant recently I was amazed at their “lights-out” goal of operating a portion their manufacturing facility unattended. Eighty-five percent of this facility’s employees are degreed engineers specializing in automation. I suspect that our decline in manufacturing employment is a combination of out-sourcing and the dramatic increases in productivity as pointed out in the cover story of the March 22, 2004 issue of Business Week, “Where are the Jobs?”

By checking the weather in Mumbai on the Internet, I’ve learned that the forecast during my stay is 99 degrees during the day and 71 degrees in the evening for the next ten days! My search for summer-weight all-cotton clothing has begun in earnest (no small task in the late winter season here). 

The soreness in my arms from the inoculations for typhoid, polio, tetanus, hepatitis A&B and the medication for malaria has made me realize what an amazing country we live in. There are places in the world that have not benefited from the advances in medicine and health care as much as we have. Our public health has been something I’ve always taken for granted.

In preparation for my journey I read guide books on India to get a glimpse of their culture and customs. While having lunch at a local restaurant recently, I noticed a group of eleven young men I presumed to be Indians or perhaps Pakistani.  I asked them where they were from. It turned out that they were, in fact, from India. They are engineers working at a local auto-parts company. After a brief conversation on travel tips I went on my way to continue my packing. 

To be continued…

Defense Industry Websites

Tuesday, March 30th, 2004

By Jeff Vedders

Since the U.S. military is a key component of many communities, and with the current attention to homeland security and defense, targeting companies that supply to the military and defense industries has increasingly become a major economic strategy for several economic development organizations.  The websites below will provide you with a look at companies winning defense contracts and doing work for the military.

This first link will take you to the Department of Defense website, specifically to where awarded contracts are announced.  The link is http://www.defenselink.mil/contracts/.  All announcements on this site are for contracts over $5 million, archived back to October 1994.  Announcements are made every day at 5:00 p.m. Eastern.  You can also subscribe for email announcements.

Another useful web site is for the Defense Daily Network at http://www.defensedaily.com.  This is the website for Defense Daily, a daily publication for business leads and defense market intelligence within the defense sector.  Much of the website is only available through a subscription, but some free items are interesting and informative.  The site contains information regarding Department of Defense Budgets and special reports issued by the military.  Generally, the most recent information is only available to subscribers.  The site also links to program profiles for the Army, Navy, Air Force, and Marine Corps.  This information is a few years old, but it lists major weapons and military equipment programs.    For example, you can learn quite a bit about the Army’s Blackhawk helicopter from its entry: its mission, a detailed description, its foreign counterpart, and its program status and projected activities. The description for each entry sometimes lists the prime contractor.   A very useful industry link section provides links to other defense sites.

Finally, take a look at the National Defense Industry Association’s (NDIA) web site at http://www.ndia.org/.  This association of over 1,100 corporate members and more than 29,000 individuals from defense and national industry includes foreign nations with whom the U.S., through the Department of Defense, has a Memorandum of Understanding.  Included are organizations that sell goods and services to the various Departments of the Executive Branch of government.  Best of all, this web site lists all of their member companies, with detailed descriptions and links to their web sites.

March Madness Special: Economic Development and Sports

Tuesday, March 30th, 2004

By Leigh Howe

Being an Indiana girl raised on the basketball court, this time of year tends to hold a special excitement for me.  As the NCAA tournament is kicking off, I’m curious about the connection and impact that sports (recreational, collegiate, and professional) may have on economic development. 

After I read several studies, it became apparent that counting on a professional sports team to be an economic engine was probably a false hope.  Economists found very little evidence of economic impact by professional sports teams and sports facilities on economic development.  In essence, sporting events do not induce residents to increase total spending, but just alter their allocation of entertainment spending. This was stated time and time again in the studies, which measured the direct and indirect expenditures around professional sports teams and facilities.  Even the economic effect of hosting major sporting events such as the Super Bowl or other championships is minimal. 

The pride, unity and sense of community that is generated from sports may make the most important impact, along with the media coverage that comes with hosting major sporting events.  While difficult to back up with hard numbers, it seems that the availability of sporting events are directly related to a favorable quality-of-life feeling and a touting of “world-class” city status.  This improved quality of life and perception may result in attracting other businesses to the area. 

We would welcome your feedback or opinion on the topic.  Please feel free to email (leigh.howe@whittakerassociates.com) with any comments or if you just want to talk some trash about which basketball team is likely to win in April.  Go Michigan State!