Barry W. Johnson Senior Associate Dean L. A. Lacy Distinguished Professor University of Virginia

1. Establishing the Richmond Region as a Leader in the Revitalization of Advanced Manufacturing in the United States Katherine DeRosear Director of Workforce Development Virginia Manufacturers Association Executive Director Virginia Industry Foundation Barry W. Johnson Senior Associate Dean L. A. Lacy Distinguished Professor University of Virginia School of Engineering and Applied Science April 26, 2012 Disclaimer: The views expressed in this report are those of the authors. No endorsement has been obtained or is implied by the University of Virginia, the Virginia Manufacturers Association, the Virginia Industry Foundation, the Commonwealth Center for Advanced Manufacturing, the Commonwealth Center for Applied Logistics Systems, the Commonwealth of Virginia, or any other organization or person.

2. Presentation Outline Introduction Trends Driving Industry Investment Technology Creation and Commercialization Advanced Manufacturing Innovation Zone Workforce Development Recommendations for the Richmond Region

3. Introduction Advanced manufacturing is the integration of technology, processes, policies, and people to produce complex products in the most cost-effective, flexible, and efficient way.

4. Trends Driving Industry Investment • Automation – machines can be located anywhere • Logistics – supply chains and customers • Workforce – higher skill sets required • Currency exchange rates – dollar is important • Governmental policies – taxes and export control • Technology – seamless access to new ideas Result – Advanced manufacturing facilities will be located based mainly on geography and workforce

5. Technology Creation and Commercialization Collaborative One Agreement Covers All Three Generic Directed

6. Advanced Manufacturing Innovation Zone

7. First Factory at Crosspointe • $170 million investment in first 180,000 square-foot facility • 130 jobs in first facility • Disc manufacturing for engines used in Boeing 787, Airbus A380 and A350 XWB • Future investments growing to $500 million and 500 jobs • 1,000 acres of land for future development First Rolls-Royce Factory at Crosspointe Crosspointe

8. Commonwealth Center for Advanced Manufacturing • Bridge the gap between fundamental research and commercialization • Accelerate technology into markets • Demonstrate on real problems • Foster collaboration among diverse industry sectors • Directed Research for the exclusive proprietary benefit of a member • Generic Research for the benefit of all members • Lower R&D costs for member companies • Shared facilities and personnel • Shared pre-competitive research • Train next generation of technology leaders • Provide market ready experience • Connect industry with students

9. CCAM Applied Research Facility CCAM Ground Breaking Event March 31st 2011 • 60,000 square foot facility • $3.975 million from U.S. EDA • $2.5 million from Tobacco Commission • $15 million from Virginia’s ARRA bonds • Contractor selected and underway • On schedule for completion September 2012

10. Expansion Plans Additional Research Facility Additional acreage available Additional Research Wing Career Center Initial CCAM Building High Bay Expansion 10

11. Workforce Development Source – 2007 Skilled Trades Gap Analysis

12. Education and Education and Community Community K K - - 12 12 Universities Universities Workforce Workforce Training Training Colleges Colleges Schools Schools Pipeline Pipeline Curricula Curricula Training Centers Training Centers Workforce Workforce Advanced Advanced Manufacturing Manufacturing Readiness Readiness Industry Industry Levels Levels Future Jobs Future Jobs CCAM CCAM CCAM CCAM Assessment Assessment and Required and Required Workforce Workforce Industry Industry Methods and Methods and Skills Skills Team Team Members Members Analysis Analysis Global Global Standards Standards and Best and Best Practices Practices Workforce Development

13. Recommendations Integrate Virginia Commonwealth University (VCU) into CCAM and CCALS. Engage the Richmond Region’s companies in CCAM and CCALS. Create a jet engine test cell at the AMIZ to spur research and industry growth. Implement the workforce development program presented in this report. Create an advanced manufacturing workforce academy as part of the AMIZ. Create a Governor’s School for advanced manufacturing as part of the AMIZ. Create the Advanced Logistics Innovation Zone (ALIZ) around CCALS. Create a network of CCAM-like centers each focused on an industry sector.

14. Questions Contact Information Barry W. Johnson University of Virginia b.johnson@virginia.edu Mobile: 434-825-5686