A View From Europe: Winter 2009
Paris Air Show 2009 ready for take off
The Paris Airshow takes place this June. And as well as five Arizona companies being there to fly the State flag, there's an invitation for other Arizona-based businesses to visit our pavilion.
The Paris Air Show (June 15 through to June 21) never fails to live up to its billing as one of the most prestigious in the world - the opportunity for companies from all over the world to do meet and do business together.
The Paris Show is held at Le Bourget airport near Paris every other year, alternating both with the Farnborough International Exhibition and Flying Display and the Internationale Luft- und Raumfahrtausstellung Berlin (ILA). This year marks an important centenary: while in 1908 - just six years after the Wright brothers got a heavier than air, mechanically propelled aircraft to hop a few hundred yards - a section of the Paris Automobile Show was made over to the new-fangled flying machines, by 1909 there was enough interest in them to hold an Air Show at the Grand Palais.
Over 150,000 trade visitors attended the last show in 2007 - as well as all major international manufacturers and the military forces of several countries. And demonstrating what Arizona can offer this year will be five companies from the State.
- ArmorWorks is a Phoenix company that provides high-tech armor protection. Their systems are in-service around the world in US Military applications. www.armorworks.com
- Alexco, another Phoenix-based business, is a leader in the extremely specialized market of hard alloy aluminum extrusions www.alexcoaz.com
- Creative Precision, also from Phoenix, specializes in the manufacturing of complex high technology components and assemblies. www.cpwest.com
- Galaxy International from Goodyear provides overhauls, repairs and check/tests for essential components such as exciters, starters and generators. www.galaxyinternational.com
- Silverado Cable Company of Mesa supplies top quality custom wire harnesses and cable assemblies to some of the largest aerospace and industrial customers in the world. www.silveradocable.com
"All the experience of previous years has demonstrated that providing a global stage for Arizona companies to present their technologies and services opens up the door to new contracts - often from unexpected places," says Armando Bras, International Director at the Department of Commerce.
"In the current climate, every company in the aerospace sector is looking to operate smarter and find a competitive edge, making this the perfect time to be making your business case.
"But being at the show in our own pavilion does even more than that. It tells the world that Arizona is a major player in aerospace. If any companies from the State are planning to visit the show, they will get a warm welcome - and we will do our best to introduce them to our contact base."
Technology watch
Hydrogen and fuel cells
While hybrids and electric motors represent a big leap forward from petrol and diesel technology in terms of energy efficiency and sustainability, the long-term power source of the automotive industry - and many others - will almost certainly be hydrogen and fuel cells. We look at how Europe is gearing up to meet the challenge and how Arizona is playing its part in the US drive for a greener economy.
At a time when Europe is focusing much of its attention and resources on surviving the downturn, the green agenda has not been forgotten.
The European Union, together with the European research community and industry, has pledged € 1 Billion ($1.28 Billion) over the next six years to fund research, and so accelerate the development, of hydrogen and fuel cell technologies. The aim is to make sure than when hydrogen and fuel cell technologies start to be properly commercialized, European companies will have a stake in that glittering future.
The Fuel Cell and Hydrogen JTI industry group spearheading the initiative encompasses 66 companies - including automotive giants Fiat and Volvo, and oil suppliers Total and Shell. Pooling the research and costs will enable a truly public / private partnership to come up with solutions that can compete on a global stage.
So what is Arizona doing to make sure it stays in the race for a greener future? Quite a lot is the answer.
Don't miss the bus
2007 saw Arizona's first Hydrogen Fuel Cell bus take to the State highways as Scottsdale-based ECOtality, Inc. invited members of the public to step onto their zero-emission mobile learning center and experience hydrogen fuel cell technology. As well as developing solutions for the future, they see part of their role as raising awareness of the potential for hydrogen - and its safety.
"The ECObus will play a key role in helping our community better understand green technologies and underscores the reality that hydrogen fuel is an accessible, safe and reliable energy option," said Jonathan Read, CEO, ECOtality.
Seawater solution
After years of research and development, AllH2, Inc. of Phoenix has invented a remarkable product known as the Dolphin 1. It is a Reverse Hydrogen (H2) Fuel Cell Energy System that stores energy in a recyclable metal cell that can be released through a chemical reaction with seawater.
This energy can be used to power automobiles, heat living spaces, water, office buildings, and generate electricity. This process is portable, has an indefinite shelf life, requires no electrical input, and the by-product can be recycled to fuel another Energy Cell.
University challenge
Scientists in our universities are also breaking important new ground. The Energy and Fuel Cell Laboratory at the University of Arizona is working in several highly promising areas.
These include:
- developing a theory for optimization of gas delivery fields and current collection systems in fuel cells;
- improving hydrogen storage techniques to increase the distance that a hydrogen-powered vehicle can travel; and
- storing solar energy in hydrogen
Polymer electrolyte membrane fuel cells (PEM-FCs) are becoming an increasingly important technology in both stationary and mobile applications. Problems impeding the development of fuel cell technology mainly involve electrocatalysts and electrolyte membranes. Commercially available membranes limit the operating temperature range to an approximate maximum of 80°C and, consequently, catalyst poisoning can result from overheating, creating serious problems.
Scientists at the Arizona State University have developed membrane materials for PEM-FCs that can operate at temperatures up to 200°C. opening up the potential for simpler and safer hydrogen manufacture.
Everybody's talking about it
And just to demonstrate how seriously Arizona is regarded as a contender in the future of the technology, the State was selected to host the national Fuel Cell Seminar & Exposition in 2008.
The conference, Fuel Cells for a Greener World, was held in October at the Phoenix Convention Center. One of the largest of its kind in the world, it gave industry insiders and businesses looking to tap into the technology a chance to test drive development vehicles from Daimler, GM, Honda, Hyundai and Toyota, meet the manufacturers who work with this cutting edge technology and hear about the latest research in the field.
It's a fascinating fact that this was the 32nd time the Seminar has been held: It has taken 32 years to get hydrogen and fuel cell technologies from the laboratory bench to the point where every automotive manufacturer in the world is now determined to absorb it into the mainstream.
If you would like to explore potential commercial links with Arizona or European organisations involved in research, development or production of Hydrogen and fuel cell technology products, get in touch with karlat@azcommerce.com
ECOtality
AllH2 inc
Energy and Fuel Cell Laborarory Research Scopes
High Temperature Ionic Conductivity Material For Fuel Cells
Fuel Cell Seminar & Exposition
Looking for partners in Europe
The planned 2009 Trade Mission to Europe has now been rescheduled for September.
The mission will be Trade Association-led and aimed at enabling businesses - of all sizes - to make valuable connections with European counterparts, with a view to forging distributorships, joint ventures and technology transfers.
If you are looking to open up new business opportunities, why not get in touch? We are at an early stage in our planning and your input now could make a major contribution towards the direction and focus that the Mission takes - to your benefit. You can contact Karla by emailing karlat@azcommerce.com.
Time to talk to our European Director
Our European Representative Trade Director Nick Deane is making his next trip to Arizona in the week commencing 23rd March and is currently planning his schedule. He is interested in meeting up with any company in Arizona keen to know more about opportunities in Europe: he can help in a variety of ways, including sourcing potential distributors, carrying out market research, making introductions and arranging meetings.
So why not register your interest in meeting Nick now, by emailing karlat@azcommerce.com.
What ADOC can do for you
If you're an SME hoping to break into the European market, you can either attempt to do it alone and invest a lot of time and effort into setting up contacts, or you can use ADOC's suite of free services - dedicated to bringing in business to Arizona companies. From market research to setting up distributorship opportunities, we're here to help you. Check out what we can do for you by clicking here.
Offsets in aerospace: a briefing
The impact upon the aerospace industry is significant - not least because the aerospace industry contributes so much to total US employment and GDP. Most of the jobs effectively being 'traded' are high skill, high wage. Offsets affect the US aerospace industry more than any other major economic sector.
But overall, is offset a good thing - increasing the sale of US goods worldwide - or detrimental: shipping production overseas and so helping to strengthen foreign competitors? There are other concerns too, mostly surrounding the risk to national security of technology transfers.
With no overarching national policy in place, offsets are determined by privately-owned companies, and a number of influential organizations have questioned whether there should be limits or restrictions.
According to an April 2008 report by Owen E. Herrnstadt and published by the Economic Policy Institute, over the 14-year period 1993-2006, US companies reported over 8,500 transactions, valued at $42 billion, that involved the transfer of production and technology to 42 countries. This led a US government report to conclude that over 16,000 jobs were lost each year over the 2002-2005 period due to offset transactions in the defense industry.
The increasing dependence on overseas suppliers also increases the chances of mistakes being made with technology - as Herrnstadt notes happened when a US aerospace company was involved in the transfer of technology to a plant in China that was involved in military production.
Other nations, meanwhile, have recognized the value of offsets as a way to gain jobs and technology without investing in development. More than 20 European countries have offset agreements, such as a $3.8 billion agreement for F-16s between Lockheed and Poland that includes subcontracts for Poles to make a variety of things, including parts for aircraft. Boeing's $4.4 billion contract with South Korea for 40 F-15s includes the provision that South Korean workers would build parts and perform subassembly for future customers in other countries.
The US is not alone in this: Airbus has numerous projects in China and plans to establish a final assembly line there for the A-320.
It was reported in October 2008 that the Indian aerospace sector is expecting to generate around $30 billion in offsets opportunities in India in the coming years. Air Chief Marshal Fali Homi Major was quoted as saying that the IAF required an investment of around $100 billion for aircraft, equipment and infrastructure over the next couple of decades and that 30 percent of the value of all defense contracts would have to be reinvested in the country. The IAF is in talks with US, European and Russian manufacturers to meet their requirements.
It's plain that countries will seek to negotiate offsets that will help them balance their trading figures - and also to help advance their own engineering and aerospace industries. And if one supplier won't offer this arrangement, another one will. In a highly competitive global market, can US companies refuse to do deals?
It's an impasse that shows no sign of being resolved any time soon. If US companies want to secure big orders, they will need to need to be competitive with other international players. But every offset carries the risk that jobs, technology and expertise are being 'exported' too: effectively a Trojan Horse within the industry walls.
Commentators such as Herrnstadt argue that these offsets are often one-way - and that the US does not make similar demands when dealing with nations exporting their products here. In his 2008 report he calls for Washington to adopt new policies that 'turns the tables' by demanding offsets." He argues that policy makers should:
- Adopt policies that will enable the United States to aggressively use offsets to its own advantage.
- Strengthen and enforce prohibitions on offsets in all multilateral and bilateral trade agreements.
- Shine a light on current offset transactions in both the defense and commercial industries.
- Create a meaningful commission to devise an effective policy.
But would that be a feasible policy conducted unilaterally, or does it require a multi-lateral international approach to be hammered out between all the major players?
News in brief
Arizona exports up
Arizona is bucking the downward global economic trend with export figures that continue to rise. Exports of Arizona-made products increased 7.6% in the third quarter of 2008 from the same period last year, and also are up year-over-year from 2007, according to the latest figures from the US Department of Commerce.
Countries around the world bought more than $4.8 billion of Arizona-produced goods from July to September of 2008 - that's nearly $400 million more than in the same quarter of 2007. The most sought after exports were precious stones/metals, machinery, ores/slag/ash, aircraft/spacecraft and plastics.
Manufactured exports are linked to 97,000 Arizona jobs, and it is estimated that 88% of the state's businesses engaging in exporting are classified as small or medium, accounting for more than $2.8 billion in goods each year. These businesses receive services from the US Commercial Service and Arizona Commerce, which work as partners to assist companies in exporting their products.
Greening Arizona
Arizona's economy is greening up - well ahead of the anticipated package of economic stimulus measures from Barack Obama designed to get America back to work - and simultaneously reduce the nation's carbon footprint.
Researchers at the University of Massachusetts-Amherst are estimating that Arizona could receive about $1.9 billion of the $100 billion package being mooted, to boost spending in areas such as solar power, biofuels and wind power. One major area could be retrofitting homes with solar panels - an industry where Arizona has renowned technical expertise.
The Greater Phoenix Economic Council is putting its weight behind expanding solar companies and jobs, and plans to lobby the Legislature for incentives.
In November, all eyes will be on Phoenix as it welcomes an estimated 30,000 building professionals to the "Greenbuild International Conference and Expo", billed as the world's largest conference and show dedicated to green building.
Stunning export order for Scottsdale Company
The UK has ordered 5,000 stun guns from Scottsdale-based Taser International Inc. following a Government decision to allow increased use of Taser devices by front line police officers.