We beat winter

I think we beat winter- entirely. I don’t think that’s a very healthy thing, but it sure has been nice.

I am also going to predict that we all need to reserve the Final Four weekend on our schedules as Coach Tom Izzo and his remarkable team push toward more history making. But perhaps, instead, or in addition, you’ll be attending Les Miserables at the Wharton Center where “Cameron Mackintosh presents a brand new 25th anniversary production of Boublil & Schönberg’s legendary musical, LES MISÉRABLES, with glorious new staging and dazzlingly reimagined scenery inspired by the paintings of Victor Hugo”. Maybe you should add Riverwalk Theater’s Black Box production called Two Beers and A Hook Shot and . . . Death Knocks. Or, perhaps, you’re just looking forward to seeing MSU’s baseball team in action, predicted to win the Big Ten this spring. Or maybe you are waiting to enjoy opening day at Cooley Stadium featuring the Class A Lansing Lugnuts.

But you get the idea…we’re just little Lansing. There’s nothing to do. MSU opera production at Wharton, Memphis – The Musical, Wicked, Riverdance…ok I really should stop.

Here is some news from the last two weeks:

1) LEAP received nice coverage in the Lansing State Journal. Please see take a second to read the article, “LEAP renewing focus on development” and editorial, “Greater Lansing must LEAP forward”.

2) LEAP’s New Economy Division continues to piece together layers of important programming for startup businesses at break neck pace.

• LEAP has partnered with The MORE Program (Matching Opportunities and Resources for Entrepreneurs Program), a U.S. Department of Labor funded 501(c)(3) nonprofit organization, to provide free access for any startup business in need of business resources our region, to utilize the InsYght resource matchmaking. Additional InsYght portal partners include Michigan State University, Automation Alley, and TechTown, to name a few.

To use InsYght, the user accesses the system through the portal and creates a profile of his or her company, including the desired resources, from workspace to human capital.  InsYght supplies specific information to connect the user to the available resources. InsYght is free and available to anyone looking to start or grow their business in Michigan. Anything from office space to accounting help, and InsYght instantly provides them with listings of available resources that most closely match the startup’s need, both substantively and geographically.  Soon it will be accessible on the websites of many, if not all, of the organizations whose resources are included in the system.

The MORE Program fuels the development and speed with which entrepreneurial ideas take shape and go to market. By working with Colleges and Universities, Incubator Programs, Industry Associations, High-Tech Small Businesses, and Government Agencies we provide “Fast Track” access to resources required to develop and market new ideas for business.  Learn more at www.themoreprogram.com.

• LEAP has announced a strategic partnership with tech giant Microsoft, on behalf of the region. LEAP will locally represent the Microsoft BizSpark program. BizSpark provides, free of charge, access to all Microsoft programs for a three year period of time to any technology-based company in our region that is less than three years old, privately held and making less than $1 million in annual revenue. Contact us for more information on this great program.

• LEAP has signed a contract to lead and operate the Business Accelerator Fund program. This unique partnership, utilizing state MEDC dollars, allows for startup businesses in our region to apply through LEAP, in partnership with Tom Donaldson and the Small Business Technology Development Center (SBTDC) for a variety of services valued up to $50,000 (marketing, legal, accounting, etc.).

• LEAP is soon to sign a formal contract running the Lansing Regional SmartZone, which includes the TIC and Hatch incubation systems in downtown East Lansing. It is our goal to expand this incubation system to the region, with its space, staff, management and programming. Thank you to the MEDC for recently awarding LEAP/Lansing Regional SmartZone a $150,000 kick off grant to help us set up this incubation program.

• Additional startup programming coming up includes: Lansing StartUp Weekend, 48 hours of intense training, innovation and collaboration between area professionals, CEOs, students and professors on start projects. Also, LEAP is participating in the Entrepreneurial Forum for International Students which is designed to bring together area professionals and resources matched to international students at MSU interested in starting a business.

3) Congrats to the Lansing Regional Chamber of Commerce’s great partnership with PTAC offices to help companies expand their business into government (Federal, State, & Local) opportunities. The Federal government alone in 2011 spent over $550 billion in goods & services. The State has over 1,100 contracts that they award yearly.

2011 totals for PTAC clients in Ingham & Eaton County was:

• Ingham County $18,099,056.00 in government (Federal, State & local) awards for clients, 291 awards with 362 jobs either created or retained.

• Eaton County $4,102,203.00 in government (Federal, State & local), 1021 awards with 142 jobs either created or retained.

For further information please contact Kim Langenberg at (517) 853-6445 or klangenberg@lansingchamber.org.

4) Congratulations to our friends at Siena Wealth Advisors, formerly known as Siena Capital Management. Siena was recognized in 2010 and 2011 as one of the top investment firms in the United States by CPA Wealth Provider and Accounting Today magazines. Only four firms made the exclusive list and Siena was the only investment advisory firm from mid-Michigan to be recognized. Congratulations local guys Steve Hicks and Roger Millbrook.

5) Welcome home Ray De Winkle, SVP of Business Development at LEAP. Ray spent the last ten days with Prima Civitas in Turkey, working on business leads, especially in the garment and fashion industry. Ray’s daily blog from the trip is available on LEAP’s homepage. Ray, only two weeks ago, was in Florida as part of the exclusive Site Search Selectors Conference, rebuilding a pipeline between our region and the national network of site selection consultants. Next month, Ray leaves for Germany and Italy as part of Governor Snyder’s mission to Europe as we work on several very hot prospects and visit world headquarters of some major firms located here in our region (including Jackson National Life).

 

LEAP goes global: Wrap up from Istanbul, Turkey

Tuesday, February 14, 2012 – This morning we traveled East out of Europe, across the Bosphorous Strait, through the Asian side of Istanbul and further east about an hour and a half.  We spent a half hour getting through all the traffic merges to get to the bridge over the Bosphorus.  Our route took us on the second bridge over the Bosphorus, further north from the one we had utilized on prior trips.  We were told there were plans for a third bridge.  This sounds familiar, doesn’t it?

We traveled to Kocaeli, which is a significant automotive center for Turkey.  We saw familiar names such as Honda, Ford, Suzuki, and Toyota as we drove.  Our destination was the Association of Automotive Parts & Components Manufacturers (TAYSAD).  We had a very productive discussion with Ms. Özlem Gülşen, who serves as Secretary General of the Association.  The Association has 290 members.  This is about 25% of the auto suppliers in Turkey.  A manufacturer must meet the following qualifications in order to become a member:

• Have a registered International Quality Assurance Certificate
• Be an exporter
• Be a Tier 1 supplier.

What was most fascinating about the Association is its location.  The offices are located in an “Automotive Industry Zone”.  This zone was established in 2001, and is 100% private.  Some forward thinking people purchased 280 Hectares (692 Acres) in 1997.  They have built a state-of-the-art industrial park, including a Technical College, a University, and a hotel is under construction.  They have planned capacity for 80 companies, and already have 56 located there.  They are also building facilities to lease to Tier 2 suppliers.  Turkey currently has capacity to produce 1.6 million vehicles annually, which will soon grow to 2.0 million.  About 70% of the vehicles produced in Turkey are exported.  For example, the Ford Transit light commercial vehicle, which is exported around the globe, including to the United States.  Another interesting fact is that approximately 70% of the vehicles purchased in Turkey are imported – so there is clearly a difference in what they consume versus what they produce.  Additionally, Turkey has a roughly 30% cost advantage for engineering services, and companies such as Ford, Fiat, and Renault have built engineering centers there.  As Turkey is still growing its automotive supply chain, they are in the lower value added end, but have plans to go higher up the value chain, which is why they are excited about the R & D centers being established there.

We next met with one of the companies in the park.  The company is supplying components to Ford globally, and are pursuing GM business.  They eventually expect to ship significant volumes to the United States, which gives us an opportunity to assist them with their location needs.  The company produces all its own tooling and machinery, and they have developed highly specialized proprietary manufacturing processes.

We then headed back to Istanbul, but stayed on the Asian side.  We met with a construction firm that appears to be very well qualified to be a contractor for Prima Civitas’s Iraq Housing project.  The company has worked successfully in Iraq, and already has equipment and employees staged there.

The contact who had organized our meeting with TAYSAD and the manufacturer in the Automotive Zone also happens to serve as Vice President of the Turkish Music Foundation.  As serendipity would have it, they were sponsoring a music concert that evening, and he arranged for us to attend.  We traveled to the historical European side of Istanbul to attend.  The venue was a special events pavilion on the waterfront across Kennedy Street from Topkapi Palace.  Yes, I said “Kennedy Street”.  President Kennedy is well regarded in Turkey.  Topkapi Palace served as the primary residence of the Ottoman Sultans for approximately 400 years.  It now serves as a museum.  Unfortunately, we had no time on this trip to visit any of the museums in Istanbul.  The pavilion is located at the confluence of the Golden Horn, Bosphorus Strait, and Sea of Marmara.  It was a packed house, my guess is around 350 people.  The crowd ranged from bohemian couples to very well dressed society types.  Remember, this was a Valentine’s Day concert.

We were treated to a delightful concert of Turkish Fasil (Classical) music.  It was a combined choral and instrumental concert.  The singers during the first half were a quartet of two men and two women.  After the intermission, the singer was a male vocalist.  The audience sang along with many of the songs.  The instruments were:

• a Cello
• an Oud – a pear-shaped stringed instrument which made me think of a mandolin
• a Kanun – a trapezoid shaped stringed instrument sometimes called a “Turkish Piano”.  We would think of it as a zither
• a Violin
• a Kemenche – a small pear shaped instrument played with a bow.  The instrument is held vertically, and rests on the players leg while the player is sitting
• a small and a larger Tambourine

During the intermission we were introduced to a couple of interesting gentlemen.  First, we met the President of the Turkish Music Foundation.  He serves as president of a global firm serving the building materials and agricultural products industries (exporting to 80 countries).  We also met the Honorable Mehmet Dönmez, who formerly served as Turkey’s Ambassador to Yemen.  He currently serves as the Representative of the Ministry of Foreign Affairs to the Istanbul Region.  He expects serve one more post as a Ambassador before he retires.  Ambassador Dönmez invited us (Steve Webster of Prima Civitas Foundation, Nurten Ural, Honorary Turkish Consul General for Michigan, and me) to his “home on the Bosphorus” for coffee the next morning.  Regretfully, Steve and I had to leave for the airport too early the next morning to be able to accept his invitation.  Perhaps next time!

I found it interesting that no one ever gave us a second look as foreigners.  I am quite used to being “observed” by the population when walking or using the subway.  What was also interesting is that while they knew I was a foreigner, they did not think I was from the United States.  The most common guesses were that I was German or Russian, with an occasional guess of Italian or English.  I suppose this is because they are so used to seeing foreigners, as the region has served as the crossroads of the globe for millenniums.

While departing from Istanbul’s airport, it became quite obvious that this region continues to serve as the crossroads of the globe.  Istanbul serves as a major hub to Europe, the former USSR countries, the Middle East, and Africa.  This was quite evident by observing the people in the airport and on our return flight to Chicago.  North American citizens were certainly in the minority on our plane, something to ponder as the world becomes flat.

Ray

If you want to view all of Ray’s pictures from Turkey click here. 

LEAP goes global: Update from Istanbul

Monday, February 13, 2012 – Our first stop was at the Investment Support and Promotion Agency of Turkey (ISPAT).  This organization is responsible for attracting foreign investment into Turkey.  It is a 5 year old organization that reports directly to the Prime Minister.  These are my peers in the attraction business, on a national level.  They focus all their efforts on attraction.  While we focus on attraction, we also focus on retaining our existing firms and helping them expand.  We met with three people there.  The two newer employees are Turkish citizens who have lived in the U.S., one in Houston for five years, and one in New York City for seven years.  Understandably, their English language skills and knowledge of our culture are very good.  ISPAT also has a two-person staff in New York.  They went through a presentation explaining Turkey’s advantages.  Its geographic location, cost structure, and young population are significant advantages.  Turkey serves as a low cost entry point to markets in Europe, Eastern Europe, the former Soviet States, the Middle East, and North Africa.  As we look to assist our firms in exporting and becoming more global, ISPAT can serve as a valuable resource for them, and it is helpful to have personally met the staff.  You can learn more at: www.invest.gov.tr.

We then met with two of the partners in ENTES, a significant construction firm.  They also have a holding company with interests in diversified industries.  Both of these gentlemen were relatively young and had been educated in the United States, one at Purdue, and one at UCLA.  They were called back to Turkey to take over the family business when their fathers needed them. This seems to be a fairly common theme.  This company is a possible contractor for the large residential project in Baghdad that the Prima Civitas Foundation is working on.  Turkish construction firms such as this one have much experience in Russia, Eastern Europe, and the Middle East.

Finally, we went to the U.S. Consulate building in Istanbul.  This is a fairly new compound, and is a very secure area.  You understand the security needs when you walk past a plaque before entering the building that honors 3 military personnel who were killed in the line of duty while defending the Consulate.  It is a sobering reminder that things were not always as safe in Turkey as they are today, and that our Embassies and Consulates are constant possible targets for violence.  One more reason to appreciate the services of those who work there.

We met with Ms. Ebru Olcay, a Commercial Specialist on staff there.  We had met with a couple of her colleagues late last week.  Ms. Olcay is a specialist in the markets for Healthcare and Biotech Technologies, Services and Products, including Medical Devices; Architectural and Construction/Building products and equipment.  Her job is to help our firms find export markets in Turkey.  In addition to Turkey, this post also helps firms export to Azerbijian, Georgia, Uzbekistan, and Kurdistan.

I forgot to update you on the weather in my last post.  We were delighted to see the sun come out on Friday afternoon.  Temperatures here have been very similar to those in Michigan.  As we were driving between appointments over the weekend, it looked like a completely different city when we had clearer air and sunshine.  Today was again heavily overcast, and the rain started this afternoon.  A mix of rain and snow is projected for the rest of this week.

Ray

LEAP Goes Global: First weekend in Turkey

Friday, February 10 – In the morning the delegation went to Collection Premier Istanbul (CPI).  This is a wholesale trade show of ready-to-wear garments from Turkish manufacturers.  The fashions ranged from swimsuits to wedding gowns, handbags, shoes (men’s and women’s), coats, sportswear, jeans, tuxedos, men’s suits, and shirts.  The show proved fruitful for a couple of members of our delegation, who were looking for sources of product for their stores, or for sources to manufacture their designs.  Unfortunately, for a couple members of the delegation, the fact that it was wholesale only (and not “cash and carry”) was very frustrating.  This had something to do with the handbags on display!  This show was scheduled to correspond with Istanbul Fashion Week, which showcases the newest collections from Turkey’s fashion designers.

After visiting CPI, we went back to Istanbul Fashion Week to see some new collections premiered.  The designers were featuring their Fall/Winter 2013 collections.  In a way, it is like the North American International Auto Show, in that there are a lot of designs that you can imagine being successful  in the market.  Additionally, there are some designs that can only be interpreted as futuristic design exercises, or creative expression for the designer – not necessarily meant for mass production and sale.

In the evening, after the premiers, we returned to Istanbul’s garment district to visit the showroom (wholesale only) of a designer of special occasion gowns for occasions  such as weddings, graduations, and proms.  They are selling successfully into the Middle East, Eastern Europe, and Russia.  They are trying to expand their market to the US and Western Europe.  This was a connection I made through the Eli Broad Business School Business Plan Competition.  The keynote speaker at the awards dinner mentioned his MBA classmate in Turkey.  This classmate happens to be a partner in this fashion company!  Because of our connection to one of the partners, we were treated to the opportunity to go to the design and manufacturing facility, in another building in the Fashion District.  Here, we were able to meet the designer, tour the prototyping and pattern making room, and the small production facility.  They also have other small production facilities outside Istanbul.

On Saturday morning, February 11, we visited designer showrooms again.  This gives us a chance to meet the designers and see a broader array of their work than we can in the runway show.  We can also see their work up close.  The afternoon and early evening was spent watching runway shows.  Late evening we had a farewell dinner, as most of the delegation was departing early Sunday morning to return to Michigan.  Our restaurant overlooked the Bosphorus Strait, which separates Europe from Asia.  This restaurant was chosen because it is a favorite of Ms. Nurten Ural, the Turkish Honorary Consul General for Michigan, who put substantial work into organizing the delegation.  Ms. Ural is also being very helpful in arranging additional meetings not related to the textile/fashion industry for those of us who are staying a couple of extra days.

Ms. Ural was instrumental in arranging a meeting on Sunday afternoon with a couple of interesting gentlemen.  The first is Azmi Ofluoglu, M.D.  Dr. Ofluoglu serves as President of Universal Hospital Group, a privately owned and run hospital system.  He also serves as President of Universal Construction, a $4.5 billion annual revenue firm with 8,000 employees globally.  We also met with Professor Dr. Izzet Bozkurt, Rector (President) of Yeni Yuzyil University, a private university also owned by Dr. Ofluoglu.  We discussed opportunities for mutual cooperation with all three organizations.  We then took a tour of one of the private hospitals owned by Universal Hospital Group.  This hospital was in the Asian side of Istanbul.  The hospital looked much more like a hotel than a hospital as we think of it.  Medical care consumers in Turkey have a choice of where they go, private hospitals such as we visited, as well as those run as public institutions and those that are part of university systems.

Ray

View Ray’s pictures from his trip here.

LEAP goes global: Turkey Trip Day #3

Today started out with a couple hours scheduled for sightseeing in Sultanahmet, the old part of Istanbul.  The day was very gray and dreary.  Our tour guide kept pointing toward things we “would be able to see if the day was more clear.”  For example, we drove along the Bosphorus Strait.  This is the body of water running between the Sea of Marmara (which is connected with the Aegean Sea and then the Mediterranean Sea) and the Black Sea.  What is more unique about the Bosphorous Strait, however, is that it is the dividing line between Europe and Asia.  Istanbul is the only city which lies in two continents.  Our guide was attempting to point out Asia across the Strait.  It didn’t work.  While we all know it was there, there was no visual confirmation.  Fortunately, the street was right next to the ancient city walls of Constantinople, so we were able to see them.  Our first stop was the Blue Mosque, named for the beautiful blue tiles that decorate its interior.  It is mammoth!  Even though the light coming through the myriad stained glass windows was very muted, it was still beautiful.  This is an active Mosque, so it was good that we arrived between prayer times.  Speaking of prayer, the Mosque has six minarets surrounding it, to call the Muslims to prayer 5 times daily.

Initially, we were set to tour the Hagia Sophia, a former Orthodox Basilica (dedicated in 360), then Mosque, and now a museum. However, since it was still snowing steadily (very unusual for Istanbul) and the walks were become quite slippery, we decided it would be wiser to visit the Grand Bazaar.  The Grand Bazaar is one of the largest and oldest covered markets in the world, with more than 58 covered streets and over 4,000 shops.  We had approximately one hour to look around and meet back at the same entrance (one of 18).  This mall opened in 1461.  If you think covered malls were a U.S. development in the 1970’s, well I guess this proves otherwise!  Very difficult to tell if it was a “suburban” location then, as it’s now in the heart of the “old city”.

We then headed back to Istanbul Fashion Week.  Between the shows, we met with two Commercial Specialists from the United States Commercial Service, based at the U.S. Consulate in Istanbul.  Their job is to assist our companies with accessing Turkish markets, and to help Turkish companies seeking to set up operations in the U.S. market.  Getting to know them was time well spent as we assist our companies with accessing global markets and work to attract overseas investment to our region.  They confirm that just as Istanbul’s location gave it a strategic location for the ancient spice trade, it’s location still serves as the gateway between Europe and Asia, and that Turkey’s economy, especially in Istanbul, continues to be one of the fastest growing in the world.

Ray

Take a look at Ray’s photos here.

LEAP goes global: Turkey trip day #2

On Wednesday, we spent the morning visiting Designer Showrooms in Istanbul’s Nisantasi District.  Pictures have been sent separately.  Cigdem Akin’s Fall line is calle “Equine”, defining “the confident woman who is not afraid of expressing her strong personality in her style.  The inspiration comes from horses which are independent, noble, as well as compliant and its reflection directs both the silhouettes and the details in the collection.”

Ozlem Suer Designer Brand is described by world fashion authorities as Avant-Garde, Neo-Romantic, Experimental, Conceptual, and Inter-Disciplinary.  This brand is sold through 150 luxurious department stores and concept boutiques globally.  The collection ranges from ready-made clothing containing multi-combination alternatives from daytime to night; evening wear for red-carpet parties, bridal gowns for wedding ceremonies (including a stunning black design), and custom designs.

We spent the rest of the day at the Istanbul Fashion Week tents, followed by a show at the W Hotel.  Following this, at 11:00pm, because that is when the schedules allowed it, the economic developers in the group met with the General Secretary of the Turkish Construction  Industry Council, to discuss strategies and resources for Prima Civitas Foundation’s Iraq Construction project.  The General Secretary was in Istanbul from Ankara, Turkey’s Capital, for an evening event.  Since we also had evening events, we just extended our day to meet with him when it was convenient for him.  We had a very good discussion.

Ray

Take a look at Ray’s pictures here.

LEAP goes global: Rays first update from Turkey

Greetings,

Our group arrived safely in Istanbul, after a 10.5 hour flight from Chicago via Turkish Airlines.

It is cold and rainy here.  Our Turkish hosts indicated that was so we would stay with the program developed for us, and not go off sight-seeing.  Istanbul (formerly known as Constantinople and Byzantium) has been a strategic global location for millenniums.  The first evidence of civilization here goes back 12,000 years.  It’s strategic location comes from the fact that this City lies in both Europe and Asia.  Istanbul has served as the Capital of: the Roman Empire, the Byzantine Empire, the Latin Empire and the Ottoman Empire.

Istanbul’s importance as a trading city is quite evident today.  As we traveled from the airport to our hotel, we spent a short time along the waterfront.  The number of ships at anchor in the harbor was amazing.

After we arrived at our hotel, we had a short time to freshen up before heading out to the opening event of Istanbul Fashion Week: a Young Designer’s Show and Awards Ceremony.  A field of over 200 designers under age 25 had been narrowed to 10.  3 of each of their designs were modeled for us.  The winner was Mr. Kadir Kilic, 21 years old, from Istanbul.  Notes from his entry: “The dominant color in the collection is black.  It is an effort to create an intellectual link between the words organic-geometric, alternative-neuter, minimal-expressionist.  It does not imply an absolute definition or judgment.”

According to Leslie Ann Pilling, CEO of Presence II Productions, who produces fashion shows in Michigan, this show was done very well.  She was most impressed with the level of the judges, significant figures in the fashion world both in Turkey and globally.  For example, one of the judges was the Dean of the London School of Fashion.

Ray

Take a look at Ray’s pictures here.