American Axle & Manufacturing to Represent Detroit at IZB International Suppliers Fair

car manufacturing

American Axle & Manufacturing Holdings, Inc. (AAM) is a Detroit-based manufacturer of automobile systems. The company is representing the city in the IZB International Suppliers Fair to be held from October 16th to 18th 2018 at Wolfsburg Germany.

AAM will showcase its lightweight and fuel efficient powertrain technology. The company is renowned for its innovative technologies in the designing, engineering and production of sustainable technologies. The following technologies will be showcased at IZB:

  • QUANTUM AXLE Technology – This collection of axles focuses on increasing performance and overall efficiency, while at the same time reducing the weight of systems. Additionally, QUANTUM delivers increased power density, reduced mass and improved noise vibration, regardless of the size of the vehicle. The gears in this case are set in optimal positions while the bearings are arranged in a more efficient manner. The performance of the vehicles is significantly boosted through such innovative components.
  • EcoTrac Disconnecting AWD – This is a framework that grants drivers the performance of AWD vehicles with the fuel economy of a front wheel drive. This technology also makes it possible for the driveshaft to have less spinning, translating to fewer emissions and less fuel consumption. This technology was introduced first by the company in 2013.
  • e-AAM Hybrid and Electric Driveline Technology – This powers both electric and hybrid vehicles with one or two electric motors. The technology is able to reduce tail pipe emissions and facilitate a high-performance, all-wheel drive (AWD) experience. Through this technology, a vehicle is able to reach up to 100kph in approximately 4 seconds. The maximum speed is over 300kph.

It is encouraging to see Detroit-based AAM soaring high on the global scene. Through its innovations, the city, state, country and world at large can benefit today and in the future.

Self-driving car R&D site in Michigan

speed 1249610 960 720 1

Foxconn Technology Group, which is best known as an iPhone manufacturer, is planning a multi-billion dollar R&D site in Michigan, dedicated to developing self-driving cars.

This announcement came shortly after the company said it will build a $10 billion facility in Wisconsin that would make LCD displays and could generate as many as 13,000 jobs.

Foxconn founder, Terry Gou, says that automotive development in the US is still more advanced than in China. In addition to self-driving technology, Gou is also interested in artificial intelligence and deep learning technology.

While Foxconn is an established and successful company, it also has plenty of competition in Michigan with other automakers such as General Motors, Ford Motors and Chrysler also having their headquarters in Michigan. Due to this close competition it is essential to remain competitive in the market, therefore Foxconn establishing the following R&D center will greatly assist the company to remain at the forefront of the competition.

While Foxconn’s plans for the R&D facility seem promising, there is still some uncertainty as to whether they will come to fruition. Foxcomm have previously announced plans to build a $30 million facility in 2013, however these plans were never executed.

Now seems like a more urgent time than ever for Foxcomm to open their R&D center as Japanese car makers Mazda and Toyota have also announced a partnership to build a $1.6 billion plant close by. Additionally, American tech giants like Google parent company Alphabet and ride-hailing company Uber are also deep in the field.

Innovative automotive development in the US is taking off with several companies investing into developing similar advanced technologies. Investment into R&D allows for a company to distinguish itself from others that are pursuing similar projects, and this is what Foxconn is aiming to achieve.

For companies in Michigan that are investing into R&D, the State research and development tax credit is a valuable tool. If you would like to discuss the R&D Tax credit further, please contact a Swanson Reed’s R&D tax advisor today.

$100 million R&D center to be built in Michigan

lab 217043 960 720

The multinational chemical corporation, Dow Chemicals, has announced construction to begin for a $100 million research and development center in Midland, Michigan. The 100,000 square foot R&D facility will accommodate for approximately 200 employees and will consist of research labs and office spaces.

Dow’s new R&D center will generate approximately 100 new jobs in the fields of silicone science and organic chemistry and the facility is projected to be completed in 2019.

CEO of Dow Chemicals chose the location of Michigan, as the state is proving to be a vibrant research, development and manufacturing sector, which is showing great potential and continuously creating new opportunities.

Dow recently also celebrated the grand opening of its 184,000 square foot, six story global headquarters in Midland, which is located only 5 miles from the future R&D center. The headquarters houses approximately 470 employees and had a construction focus on sustainability, which will be replicated in the upcoming construction of Dow’s R&D center.

Dow has definitely established itself as a global company, employing 56,000 people worldwide and having reported sales of $48 billion in 2016. This signifies the importance of investing into R&D as it will allow the company to focus on innovation and remaining competitive on a global scale.

For companies that are investing in R&D, the research and development tax credit is a valuable tool.  If you would like to discuss the R&D Tax credit further, please contact a Swanson Reed’s R&D tax advisors today.

Over 10,000 Tech Jobs Added to Michigan Last Year

mouse 285123 1280

Michigan is climbing the ranks when it comes to tech jobs, growing by 5.1% in 2016 and creating 10,700 jobs. It placed in the top 5 states for percentage growth and was the 10th largest employer of tech workers in the US, with 221,994 employed. The tech sector alone accounted for over $30 billion of the Michigan economy last year (6.6%).

On average, a Michigan tech wage was $89,200 last year, which was well above the state average of $50,400. Popular jobs included industrial engineers, mechanical engineers and computer user support specialists. In quarter four of 2016, there were 28,600 job postings for tech jobs.

Governor Rick Snyder said that, “Over the past six years, we’ve worked hard to attract talent and close the skills gap, including in the high-tech world, and have created nearly 500,000 private-sector jobs. Michigan also has a strong public/private partnership dedicated to working together to build state-wide student proficiency in science, technology, engineering, and mathematics… As a global leader in design and engineering, we are proud to be home to the most FIRST Robotics teams in the U.S. — a national program that offers high schoolers the opportunity to work side-by-side with professional engineers to build, design, and program robots that battle one another (in standardized competitions). We hope to build on these efforts to continue to grow a talented workforce and high-tech industry within Michigan.”

Jobs for tech workers are increasing, not just at technology companies, but in finance, manufacturers and retailers. In fact, two-thirds of these jobs are outside of specific technology businesses. Computing now has twice as many jobs as manufacturing.

Computing now has twice as many jobs as manufacturing. With the tech boom occurring outside of Silicon Valley in places like Michigan, Utah and North Carolina, it is argued that more training is required to fill the shortage. Students in rural areas are less likely than those in the cities to have access to such training, caused in part by a lack of qualified teachers and less funding. However, there is also a skills gap in metro areas and we’re seeing coding bootcamps popping up all over the country.

In Michigan, one of the areas where the strongest year-over-year job growth was seen was R&D and testing labs (5.4%). If your business is undertaking R&D, you may be able to benefit from the R&D Tax Credit. To find out whether you qualify, have a chat with one of our R&D Specialists today.

U.S. Universities Spending More on Research and Development

campus shot blur

U.S. universities are spending more and more on R&D these days. In 2015 alone, colleges and universities spent a combined $68.8 billion on research and development with the top 20 colleges accounting for 30% of that.

To discover the universities spending the most in research and development, 24/7 Wall St. assessed R&D expenditure by university for the 2015 fiscal year with data from the National Science Foundation. Of the 1,871 major colleges and universities reviewed, 10 schools spent more than $1 billion on R&D.

Top 10 Universities for R&D Expenditure

  1. Johns Hopkins University in Baltimore, Maryland
    • Annual R&D spend: $2.31 billion
  2. University of Michigan
    • Annual R&D spend: $1.37 billion
  3. University of Washington
    • Annual R&D spend: $1.18 billion
  4. University of California, San Francisco
    • Annual R&D spend: $1.13 billion
  5. University of California, San Diego
    • Annual R&D spend: $1.10 billion
  6. University of Wisconsin – Madison
    • Annual R&D spend: $1.07 billion
  7. Duke University in Raleigh, North Carolina
    • Annual R&D spend: $1.04 billion
  8. Stanford University in Stanford, California
    • Annual R&D spend: $1.02 billion
  9. University of California, Los Angeles
    • Annual R&D spend: $1.02 billion
  10. Harvard University in Cambridge, Massachusetts
    • Annual R&D spend: $1.01 billion

Contact Us

If your company is conducting R&D through a local university or college, you may be eligible for a higher R&D tax credit rate. Contact a Swanson Reed specialist to find out more information.

How Does Your State Rank on the Innovation Scale?

business 561388 960 720

Innovation Is Key

Innovation is crucial to sustainable economic growth, but for innovation to occur businesses must have both the incentive and the capacity to invest.

As innovation is key to the United States’ economy as a whole, many U.S. states are showing off while others are falling short when it comes to patents, R&D, venture capital and academics.

So which states are excelling in innovation and which ones are lacking, you ask?

Patents

The top states in patents per population include:

  1. Wisconsin
  2. Washington
  3. Texas
  4. Utah
  5. California
  6. Massachusetts

The bottom five patented states include:

  1. Alaska
  2. Mississippi
  3. Tennessee
  4. West Virginia
  5. Wyoming

Venture Capital

The top states for venture capital are:

  1. Massachusetts
  2. California
  3. Utah
  4. Washington
  5. Colorado

The lowest are:

  1. Arkansas
  2. Alaska
  3. Hawaii
  4. Wyoming
  5. Iowa
  6. South Dakota

R&D Spending

The leaders in R&D spending are:

  1. Delaware
  2. Michigan
  3. California
  4. Connecticut
  5. Massachusetts

The states that spent the least on R&D include:

  1. Arkansas
  2. Wyoming
  3. Louisiana
  4. Alaska
  5. Mississippi

Academics

As for academics, the top states include:

  1. New Mexico
  2. Maryland
  3. Rhode Island
  4. Massachusetts
  5. Alabama

The lowest academic rankings were for:

  1. Louisiana
  2. Arkansas
  3. Delaware
  4. Wyoming
  5. Nevada

If you are a U.S. based company conducting R&D you may be eligible for the federal and/or state research tax credit. Please contact a Swanson Reed representative to find out further information.