Alternative energy, life sciences, health care, IT and biotech are all clearly growing niche industries in the Southeast Michigan region. The fact that Aernnova Gropo, a Spanish aeronautics company, will locate a new $10 million aerospace engineering center in Pittsfield Township, gives hopes that yet another industry might join that list.
Once
Ann Arbor SPARK decided to pursue aerospace as a potential growth industry, they brought in members of the area aerospace community, such as General Dynamics and Libeherr Aerospace, to pick their brains. CEO Mike Finney is hopeful that the Aernnova announcement will spur even more investment in the industry. "One company does not represent a solution, but it is a wonderful start," he says. "We will continue to find and add opportunies within the aerospace sector."
Aernnova is expected to employ up to 600 people at the facility, which will focus on the design of composite and metal aerostructures -- sections of aircraft such as wings, tails and fuselage. An economic impact study prepared by the
Michigan Economic Development Corporation estimates that another 657 indirect jobs will be created by the investment.
The company looked at 15 other states, but two things swayed them to Ann Arbor: an MEDC tax credit and the quality of nearby engineering programs.
On the recommendation of the MEDC, the Michigan Economic Growth Authority board approved a state tax credit for Aernnova valued at more than $18.5 million over 15 years. On top of that, Pittsfield Township is considering a 12-year abatement worth $304,000. The project is expected to generate more than $908 million in personal income.
"The new center intends to tap the substantial engineering talent pool that exists in this area, including collaborations with the excellent local universities," Aernnova Chairman and CEO Iñaki López Gandásegui said in a statement. Of particular interest to the company is the ability for potential employees to use a software suite called CATIA (Computer Aided Three-Dimensional Interactive Application) that is used to design aerospace equipment. The program is taught at University of Michigan and Eastern Michigan University, and is also used by automotive engineers.
By making use of the talent from area university graduates, some of Michigan's brain drain will be staunched by Aernnova. "Many of our graduates leave the state," says Finney. "This is a great opportunity to keep some of those graduates here."
The engineering center will initially focus on the needs of American and European commercial aircraft manufacturers, with plans to grow into defense supply and renewable resource technologies.
Aernnnova emplys 3,000 worldwide and counts Boeing and Airbus among its major clients.
Source: Mike Finney, Ann Arbor SPARKWriter: Kelli B. Kavanaugh
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