Michigan Minority Supplier Development Council Articles RSS Feed

Seeking Innovative Healthcare Suppliers

Laura Schrubb — Tue, 08 Jun 2010 16:00:00 GMT

MedAssets Seeks Ground-breaking Products & Services for the 2010 Technology & Innovation Forum

Atlanta, June 1, 2010—MedAssets, Inc.(NASDAQ: MDAS) is once again connecting leading healthcare providers and suppliers to help quickly bring critical innovations to the group purchasing organization (GPO) market through its ninth annual Technology & Innovation Forum. Today, MedAssets is calling for Technology & Innovation Forum nominations to help these healthcare providers easily identify and review innovative medical supplies and technology from suppliers across the country.

Suppliers can nominate their products and services for inclusion in the MedAssets Technology & Innovation Forum, which are then evaluated on their capabilities to improve patient care, add efficiency to the healthcare delivery process and fulfill a need to the healthcare industry. Suppliers chosen through the nomination process will have an opportunity to solicit advice and valuable feedback from healthcare supply chain professionals. Solutions receiving a high score will be evaluated for possible inclusion in the MedAssets GPO contract portfolio and made available to more than 40,000 MedAssets healthcare provider customers in the acute and non-acute care markets.

Suppliers wishing to participate in the Technology & Innovation Forum should complete the online entry form. MedAssets welcomes submissions from any supplier who can add innovation, increase efficiency or improve patient safety, including companies that specialize in green technologies or companies that are certified minority, woman or small-disadvantaged businesses as well as service-disabled veteran-owned small businesses.

“The Technology & Innovation Forum is a great venue for suppliers to gain feedback directly from the healthcare providers who will use them,” said John Kelsey, Vice President, Healthcare at Clean Harbors, who took part in the Technology & Innovation Forum in 2009 and was selected for inclusion in the contract portfolio. “MedAssets places a lot of emphasis on connecting suppliers and healthcare providers so that we can work together to develop the best-practice solutions that will improve care and lower costs at their facilities. The interactive discussions are invaluable to our product development process, and help us provide them more quickly to a ready market.”

About MedAssets
MedAssets (NASDAQ: MDAS) partners with healthcare providers to improve their financial strength by implementing spend management and revenue cycle solutions that help control cost, improve margins and cash flow, increase regulatory compliance, and optimize operational efficiency. MedAssets serves more than 125 health systems, 3,300 hospitals and 40,000 non-acute healthcare providers. For more information, visit www.medassets.com.

About Clean Harbors
Clean Harbors is the leading provider of environmental services and largest hazardous waste disposal company in North America. Since 1980, Clean Harbors has been providing comprehensive waste management services to hospitals and healthcare institutions. The Company also serves over 50,000 customers, including a majority of the Fortune 500 companies, thousands of smaller private entities and numerous federal, state, provincial and local governmental agencies. Headquartered in Norwell, Massachusetts, Clean Harbors has more than 175 locations, including over 50 waste management facilities, throughout North America in 36 U.S. states, seven Canadian provinces, Mexico and Puerto Rico. The Company also operates international locations in Bulgaria, China, Singapore, Sweden, Thailand and the United Kingdom. For more information, visit www.cleanharbors.com.

8-Jun-10 11:00 AM

How to Get Certified as a Minority-Owned Business

Fri, 21 May 2010 15:00:00 GMT

For more information on this article, please click the following link:

Minority Owned-Business Article

21-May-10 10:00 AM

NMSDC Names New President

Kim Brown — Thu, 20 May 2010 20:00:00 GMT

To read more about Joset B. Wright being named President of the National Minority Supplier Development Council, click on the following link:

NMSDC News Release

20-May-10 3:00 PM

Most Supplier Diversity Programs Simply Fail To Deliver

Thu, 20 May 2010 15:00:00 GMT

May 14, 2010

Hackett: Most Supplier Diversity Programs Simply Fail To Deliver

Few Companies Even Measure Whether Supplier Diversity Programs Achieve Company Objectives, Hackett Research Finds

ATLANTA & LONDON, May 14, 2010 - While world-class procurement organizations continue to outperform their peers in driving supplier diversity spending, a new study by The Hackett Group, Inc. (NASDAQ: HCKT) identifies several critical ways that most companies fail in their supplier diversity programs.

Hackett's latest research found that companies with world-class procurement organizations commit 33% more of their spend to diverse suppliers (13.3% of total spend for world-class versus 10.0% for typical companies).

But according to Hackett's research, most companies still make major errors in how they operate and measure the performance of their supplier diversity efforts. Most rely on overly simplistic measures to evaluate the progress of supplier diversity programs, and never truly assess whether programs are meeting corporate objectives. Most companies also fail to consider whether a few large suppliers or many smaller suppliers best supports their corporate goals. Hackett's research also quantified the positive and negative impact that globalization is having on supplier diversity efforts.

"What we see here is serious misalignment," said Hackett's North American Procurement Advisory Program Lead Kurt Albertson. "Many companies are taking the easy way out, and as a result aren't driving real supplier diversity benefits. They are focused on making the numbers they need to meet government requirements, or getting recognition from their customers or industry. But they aren't showing the attention to detail required to create programs that have real impact."

The Hackett study, which included results from nearly 40 Global 1000 companies, found that there are two primary drivers of supplier diversity efforts. While business-to-business companies are frequently focused on meeting supplier diversity requirements of customers and/or government contracts, business-to-consumer companies generally focus on the market value supplier diversity offers, in the form of increasing market penetration in diversity markets, driving social and economic benefits in targeted communities, and improving corporate image.

But while supplier diversity programs are generally aligned with high-level corporate objectives, most companies use relatively simplistic performance metrics to measure progress, and do little to ensure alignment at an operational level. About 90 percent of all companies in the study rely on metrics such as "Percent Spend with Diverse Suppliers" or "Recognition by Industry". But less than half of the companies in the study track the percentage of their suppliers that diverse suppliers represent, and only about 10 percent of all companies assess the impact of supplier diversity efforts on revenue or market share.

Another key mistake companies make, according to the Hackett study, is failing to align program objectives with decisions regarding the number of diverse suppliers with whom they work. Hackett's research found that nearly 70 percent of diverse suppliers have less than $100,000 in annual diversity spending with a particular company, and this collectively represents less than 6 percent of the total supplier diversity spend. According to Hackett, while the objectives of business-to-business companies might be best served by focusing on a few larger contracts to satisfy government regulations, business-to-consumer companies seeking to drive market awareness and penetration should consider focusing their supplier diversity efforts on developing a larger group of suppliers and smaller individual contracts.

Finally, Hackett's research found that globalization of business services presents both obstacles and opportunities for supplier diversity programs. While nearly 80 percent of all companies studied were global businesses, over 90 percent tracked metrics only for U.S. suppliers. But more than two thirds of the companies said globalization of supplier diversity programs is either very important or critical. About half of the companies in the Hackett study said they expect globalization to have a negative impact on their smaller suppliers, while nearly 20 percent said they expect the impact to be positive.

Overall, Hackett sees an opportunity for companies to align supplier diversity programs with global sourcing initiatives. Hackett believes that most diversity programs will eventually have to address the challenges involved in tracking non-US diverse supplier spend and certification; many will be forced to rethink their definition of diversity to take into account responsible supply, localization and other factors.

About The Hackett Group, Inc.

The Hackett Group (NASDAQ: HCKT), a global strategic advisory firm, is a leader in best practice advisory, benchmarking, and transformation consulting services including strategy and operations, working capital management, and globalization advice. Utilizing best practices and implementation insights from more than 4,000 benchmarking engagements, executives use The Hackett Group's empirically-based approach to quickly define and implement initiatives to enable world-class performance.

Through its REL group, The Hackett Group offers working capital solutions focused on delivering significant cash flow improvements. Through its Archstone Consulting group, The Hackett Group offers Strategy & Operations in the Consumer and Industrial Products, Pharmaceutical, Manufacturing and Financial Services industry sectors. Through its Hackett Technology Solutions group, The Hackett Group offers business application consulting services that help maximize returns on IT investments. The Hackett Group has worked with 2,700 major corporations and government agencies, including 97% of the Dow Jones Industrials, 73% of the Fortune 100, 73% of the DAX 30 and 50% of the FTSE 100. Founded in 1991, The Hackett Group was acquired by Answerthink, Inc. in 1997. Answerthink was renamed The Hackett Group, Inc. in 2008. The Hackett Group has global offices in the United States, Europe and Asia/Pacific.

More information on The Hackett Group is available: by phone at (770) 225-7300; by e-mail at info@thehackettgroup.com.

20-May-10 10:00 AM

Kelly Services Develops Low- Cost Insurance Program for Key Suppliers

Chris Lewis — Thu, 04 Mar 2010 13:00:00 GMT

/attachments/wysiwyg/2445/KellyServicesArticle.pdf

4-Mar-10 7:00 AM

BUY Michigan Products

Bonita Gaston — Wed, 17 Feb 2010 15:00:00 GMT

This campaign, highlights Pure Michigan branding, encouraging purchases of Michigan-made products by using a host of local celebrities for 30-and 15-second Public Service Announcements.
Click on the link to watch PSA: http://www.youtube.com/watch?v=Tusp77o74ac

17-Feb-10 9:00 AM

Walgreens Announces Community Corner Program

Wed, 03 Feb 2010 18:00:00 GMT

For Immediate Release Contact: Natalie Dean

The Walker Marchant Group

202-466-6040

Walgreens Announces Community Corner Program Showcasing Products

Produced by Minority-Owned Businesses

New initiative launches with recognition of African-American vendor partners

throughout the month of February

Deerfield, IL (Feb. 1, 2010) – Walgreens, the nation’s largest drugstore chain, today introduced its new Community Corner program designed to highlight the successes of minority-owned businesses. This first-of-its-kind supplier diversity initiative is designed to allow consumers to easily identify and purchase products produced by diverse companies. Walgreens will recognize these vendor partners through print advertisements, in-store announcements, coupon booklets, shelf tags, in-store product demonstrations and Walgreens.com. The company will launch the program featuring products made by African-American vendors throughout the month of February in honor of Black History Month.

During February, Walgreens will showcase the following African-American produced brands:

African Royale Hot Six Oil, Angelica’s Cakes, Bronner Brothers Pump It Up! Spritz, Evolve Purse Size Styling Brush, High Time Bump Stopper-2 Razor Bump Treatment, Jamaican Mango & Lime Locking Gel, Luster’s Pink Oil Moisturizer, Mix Match Gourmet Popcorn, Organic Root Stimulator Olive Oil No-Lye Relaxer Kit, Pepsom Sports Epsom Salt, Porcelana Night Skin Lightening Cream, Reggio’s Pizza, Rejuvenizer Diabetic Sock, Richard’s Ice Cream, Sheenique Relaxer, Stay Smooth No-Bump Gel, Ultra Sheen Relaxer Pack, WavEnforcer Premium Do-Rag, and 2010 Black History Calendar. Six African American-owned magazines – Ebony, Black Enterprise, Jet, The Source, Sister to Sister and Upscale – will also be featured.

On Friday and Saturday, Feb. 5 and 6, select Walgreens locations will host special events featuring products from the vendors above. Customers will have the opportunity to try featured products and take home samples.

From personal care, to diabetic needs, to magazines and hair care needs, Walgreens stores reflect the diversity of the neighborhoods they serve. Diversity is a business imperative for Walgreens and as an active and ever-present economic factor in thousands of communities, the company has long embraced diversity – not only in the people it employs, but also in the array of community-built brands it selects to meet the needs of its broad consumer base. Walgreens plans to expand the new Community Corner program to feature products of businesses owned by women, Hispanic Americans, Native Americans, and Asian Americans at different points throughout the year.

“Providing a platform such as Community Corner to showcase these vendors creates an opportunity for consumers to instantly influence economic growth in their communities,” said director of supplier diversity, Gleatha Glispie. “Walgreens outreach programs foster an environment that enhances the development of a diverse group of entrepreneurs. We plan to promote wider vendor participation throughout the year, and in this way, help support the economic base of the communities we serve across our 7,100 stores.”

Walgreens expects its Community Corner program to drive awareness for its diverse suppliers in a new, more tangible level in local communities. In addition to promoting these suppliers’ products in stores, the company is developing ongoing relationships with community organizations such as the National Minority Supplier Development Council and the National Urban League. For example, the NUL Wellness Tour is now entering its third year of offering free health screenings in underserved communities.

“I congratulate Walgreens on continuing to make supplier diversity an essential business strategy even as many have scaled back efforts in this tight economy,” said National Minority Supplier Development Council President Harriet R. Michel. “Giving shoppers the ability to identify and support diverse business is an innovative approach that I believe can have a lasting impact on the growth and continued success of these companies.”

“We’re extremely proud to represent these important vendor partnerships in such a visible and relevant way for everyday shoppers,” said Glispie. “This is another example of the many ways we’re working to strengthen these relationships each day. We’ll start by honoring Black History Month, but just like the many accomplishments of African Americans in this country, our commitment to diversity is ongoing. This is just the beginning.”

For more information on Walgreens Supplier Diversity visit www.Walgreens.com/diversity/oursuppliers and shop for Community Corner products online at www.Walgreens.com/cc.

About Walgreens

Walgreens (www.walgreens.com) is the nation’s largest drugstore chain with fiscal 2009 sales of $63 billion. The company operates 7,149 drugstores in all 50 states, the District of Columbia and Puerto Rico. Walgreens provides the most convenient access to consumer goods and services and cost-effective pharmacy, health and wellness services in America through its retail drugstores, Walgreens Health Services division and Walgreens Health and Wellness division. Walgreens Health Services assists pharmacy patients and prescription drug and medical plans through Walgreens Health Initiatives Inc. (a pharmacy benefit manager), Walgreens Mail Service Inc., Walgreens Home Care Inc., Walgreens Specialty Pharmacy LLC and SeniorMed LLC (a pharmacy provider to long-term care facilities). Walgreens Health and Wellness division includes Take Care Health Systems, the largest and most comprehensive manager of worksite health and wellness centers and in-store convenient care clinics, with more than 700 locations throughout the country.

3-Feb-10 12:00 PM

Commerce Secretary Meets MMBDC at Dakkota Integrated

Louis Green — Fri, 05 Jun 2009 19:00:00 GMT

Thursday, June 4, 2009

Obama official tries to quell auto fears

Mark Hornbeck / Detroit News Lansing Bureau

Holt -- A high-level Obama administration official spent a couple hours in Michigan on Wednesday to allay people's fears about the future of the domestic automakers and to tell business and community leaders how the government can help make them whole again.

Secretary of Commerce Gary Locke also announced $27 million in grants to be shared by six Midwestern states. The money is part of the federal stimulus package.

Locke said his department can help emerging businesses get access to capital and those slammed by the auto industry downturn to diversify.

"We need to get together with the governor's office and get the word out. We're available to help companies diversify," the former two-term governor of Washington state said after a question-and-answer session with workers and local leaders at Dakkota Integrated Systems LLC, a Holt auto supplier that makes instrument panels.

He was asked how the federal government, now that it owns a majority of bankrupt General Motors, can help the car company promote its products.

"President Obama has no intention of getting involved in the day-to-day operations of General Motors," Locke said. "If we get involved in promotions and advertising, where does it stop? We need to turn management over to the experts."

He added that the federal government's ownership of GM is temporary. "This is not a takeover," he said. "The U.S. government does not want to be a shareholder in GM for any long period of time."

Locke noted that the bankruptcy filing "was coming for a long time, but that does not make any less the body blow."

His appearance in Michigan came on the second day of a string of visits by federal officials in the anxious aftermath following GM's filing. Labor Secretary Hilda Solis and auto recovery director Ed Montgomery were in the state Tuesday.

Lizabeth Ardisana, CEO of ASG Renaissance, a technical and communications services firm in Dearborn that serves the auto industry and others, said the gathering with Locke was helpful.

"Commerce has a number of programs that were always available to us. People simply don't know about them," she said.

Leon Richardson of ChemicoMays in Chesterfield Township wanted to know how Commerce can help small businesses in Michigan get defense department contracts. Locke said he'll look into it.

"The meeting could be helpful if they're serious about this commitment," he said.

Dennis Keat, CEO of Su-Dan Corp., an auto supplier in Rochester Hills, showed up to say how the recovery act saved his company. As a tier-one supplier, he got a check from the federal government to tide his company over during the GM bankruptcy.

"We were so afraid of the GM filing because of the amount of money they owed us. We couldn't have survived without the help," said Keat, whose company's work force has dwindled from 250 six months ago to 80 because of the auto sales slump and a 50 percent reduction in orders.

Roslyn Personius, a worker at Dakkota, said Locke's visit to her plant "shows Washington is hearing our voice."

mhornbeck@detnews.com (313) 222-2470

5-Jun-09 2:00 PM

Auto Suppliers Get Government Help; But will black-owned companies benefit?

Fri, 10 Apr 2009 17:00:00 GMT

"Auto Suppliers Get Government Help But will black-owned companies benefit?"

By Cliff Hocker - April 10, 2009

MMBDC President Louis Green quoted in recent Black Enterprise Online Article: “I think it will do little or nothing for black-owned businesses,” Green says. First, the program is only for direct parts suppliers, and only about 80 African American MMBDC firms directly supply automakers the parts that go on vehicles.

Click here to read the complete article

10-Apr-09 12:00 PM

Saginaw Bay could be renewable energy powerhouse

Steve Larson — Fri, 27 Feb 2009 14:00:00 GMT

The Saginaw Bay area can become a wind and solar powerhouse, Michigan's energy chief says. State officials are working to boost renewable energy industries in the state and region, Stanley "Skip" Pruss, director of the Michigan Department of Energy, Labor & Economic Growth, said Thursday in Bay City.

The idea is to build on solar investments already made by Hemlock Semiconductor, Dow Corning and Dow Chemical in the region, and wind development by out-of-state companies in the Thumb, Pruss told more than 100 people at a Bay Future annual meeting at the Doubletree hotel and conference center.

"Our problem is not enough jobs," he said. But the "new energy economy" promises $4.5 trillion in economic benefit in the United States by 2030, along with 40 million jobs, he said.

Bay Future and the two other economic development groups in the region have launched a Solar Initiative to attract investment here. Some members were in Las Vegas on Thursday for a trade show.

Pruss, former special advisor to Gov. Jennifer Granholm on renewable energy and the environment, said Michigan needs to take advantage of renewable energy opportunities to create jobs and reduce greenhouse gas emissions from traditional coal-fired power generation.

"Climate change is real," he said. "Those who say that it's not need to be better educated."

The state is striving to be the leader in every sector of renewable energy, Pruss said, from solar to advanced batteries, wind, energy efficiency and carbon capture.

While the Saginaw Valley is a leader in producing base materials for the solar industry that are shipped overseas, Pruss said, the region and state need to be in the business of making and selling solar panels in Michigan.

"The real opportunity for Michigan is to capture the rest of the value chain," he said, like Germany and Spain have done.

He also pointed to Michigan's renewable portfolio standard, requiring utilities to get 10 percent of their power from renewables by 2015, as a driver of change in the state. Michigan Wind 1, the state's second and largest commercial wind farm, was dedicated Thursday near Ubly.

Pruss said a Michigan company, which he declined to name, is working on the next generation of carbon fiber turbines, which will be less expensive to make and able to generate more power.

Fred Hollister, president and CEO of Bay Future, said the visit by Pruss reinforced the need for the Solar Initiative.

"This is a growing industry," Hollister said. "We should get in on the ground floor."

Besides solar and wind, there are even greater opportunities for job creation in energy efficiency, Pruss said.

The state plans to roll out a "Michigan Saves" program within a year that will use federal and other dollars to allow homeowners to make energy efficiency improvements, then pay back the cost through their utility bills, based on the money they save.

Michigan is already first in the world in many areas, Pruss said, including "the most robust tax credits available to manufacturers" for advanced energy storage technology.

"Every battery company in the world wants to come to Michigan," he said, adding that he thinks one or two commercial battery plants will end up locating here soon.

Such investment would be a lifeline to the auto industry, which is moving to more hybrid and electric vehicles.

27-Feb-09 8:00 AM

The Ripple Impact of the U.S. Automotive Industry

Bonita Gaston — Thu, 11 Dec 2008 18:00:00 GMT

11-Dec-08 12:00 PM

MMBDC Celebrates Harriet Michel's 20 Years of Excellence

Bonita Gaston — Wed, 10 Dec 2008 21:00:00 GMT

The Michigan Minority Business Development Council pays tribute to
Harriet Michel, President, National Minority Supplier Development Council

10-Dec-08 3:00 PM

Support for the Auto Industry is in America’s Best Interest

Louis Green — Thu, 13 Nov 2008 17:00:00 GMT

Support for the Auto Industry is in America's Best Interest

Support for the auto industry allows it to continue its transformation and progress that began well before the current economic crisis.

· U.S.-based auto manufacturers, in conjunction with the UAW, have taken major actions to restructure their business to be fully competitive.

· Latest UAW agreement (Fall 2007) provides solid basis for cost competitiveness. . .We are restructuring our companies, reducing costs, improving quality, increasing productivity. . .all the tough, necessary actions that will help us emerge as a stronger, more competitive company.

· We've negotiated new agreements with our UAW partners that have rewritten the rules of competition in our business... our cumulative structural cost reduction from 2006-10 will be approximately $13-14 billion and have responded in an innovative way to reduce our so-called "legacy" costs associated with pensions and retiree healthcare.

· Starting in 2010, we expect our cash spending on U.S. pensions and retiree healthcare to decline to about $1 billion per year. That's a savings of about $6 billion a year... which makes us dramatically more competitive...

· GM has been streamlining its U.S. operations. It has reduced its U.S. salaried workforce from 44,000 in 2000 to 32,000 in mid-2008, and its hourly workforce from 132,000 to 72,000 during the same period.

· In response to the recent economic crisis, GM is further tightening its belt. The company recently took additional actions to reduce salaried employment costs by 20 percent, eliminate raises and discretionary bonus for executive and management employees, and suspend the 401k match for salaried employees.

· We led the Harbor report for manufacturing productivity with more of our plants leading their respective segments than any other.

Support allows continuing product and technology investment necessary for future competitiveness. . .we've also heard the call for more fuel-efficient passenger cars.

· Recent product launches (like Chevy Malibu) confirm U.S. industry's commitment to product excellence.

Major commitment to cars / crossover (18 of GM's next 19 launches, 13 of last 15).

· Our new products are winning acclaim: Saturn Aura and Chevrolet Malibu won North America Car of the Year. The Cadillac CTS was Motor Trend Car of the Year. The 2 Mode Hybrid Chevy Tahoe—a full size SUV that seats seven with great towing capability—gets the same highway gas mileage as a Toyota Camry and received Green Car of the Year at the LA Auto Show.

· Quality also now viewed as fully competitive. . .with lower warranty costs and with the new Chevy Malibu, Cadillac CTS, Saturn Outlook and Chevy Silverado recognized by both J.D. Power and Consumer Reports.

At GM, we offer 17 models achieving 30 MPG highway or better - twice our nearest competitor.

Support enables growth in U.S. technological capability/leadership in key new propulsion areas and strengthens the nation's energy security. . .the U.S. cannot allow its current dependence on foreign petroleum to be replaced with foreign-sourced and developed technologies.

The Chevy Volt changes the rules of the game by creating an entirely new propulsion category - Extended Range EV. Range is 40 miles on pure electric and zero emissions. . .with most commuters never using a drop of gas.

A healthy domestic auto industry is key to US R&D preeminence - government support will maintain US leadership in overall R&D spending for years to come

· Without the R&D spending of domestic auto companies, the US would fall behind Europe in overall R&D spending according Booz Allen's recent report on the "Global Innovation 1000"

· Booz Allen has rated GM at the top-ranked US company in global R&D spending in 2008 at $8.1 billion - ranked second across all companies globally

o The domestic auto industry is driving the investments in advanced biofuels

· Funding for development of cellulosic ethanol and other advanced biofuels rests on the prospect of a large market for high level ethanol blends like E85 in flex fuel vehicles.

· The domestic auto companies have committed to make half of their fleets FFVs or biofuel capable diesels by 2012 - no other automakers have made any similar commitments.

o The domestic auto industry is making the US a center for hybrid technology

· GM has 8 hybrids in the market using technology developed in the U.S. - 20 are planned by 2012.

· Chrysler, Daimler and BMW are partnering with GM to further deploy GM's domestically developed hybrid technology to the marketplace.

o The domestic auto industry is the only industry capable of standing up a domestic advanced battery industry

· While many recognize the importance energy storage technologies in the 21^st century, only the auto industry had the potential purchasing power to drive the location of advanced battery manufacturing - and only the domestic auto industry can drive that investment in the US.

o The domestic auto industry is the only industry sustaining development of a domestic fuel cell industry.

· Leading nations like Japan and Germany are planning to begin early commercialization of fuel cells around 2015.

· The domestic auto industry is progressing on a similar timeline, but without US automakers, all of the critical fuel cell components will come from abroad.

· GM has spend over a billion and a half dollars to develop fuel cell vehicles, AND a largely domestic supply base for this fledgling industry.

o Domestically developed advanced automotive technology is an important path to US export growth

· GM has exported its domestically developed "Belt-Alternator Hybrid" system to China to power the first Chinese hybrid vehicle

o Collapse of the auto industry would result in a devastating economic and competitive scenario for the nation.

· Risk of "Domino Effect" due to common supply base and overlapping dealer ownership.

Support enables the industry to bridge what is arguably one of the country's most difficult economic periods and to weather a financial storm not of its own making.

· U.S. credit freeze and essentially closed capital market resulting in a liquidity squeeze, at a time when manufacturers' cash flow from operations are devastated by plummeting consumer demand.

· However, balance sheets are weakened due to restructuring costs, heavy pension and health care payments, large product and technology investments.

· Failure is not an option for the U.S. auto industry, nor for any of the three domestic automakers.

o Failure of one automaker would trigger a domino effect on the supply chain and the finance subsidiaries and on other domestic automakers.

Auto industry is a national asset and a critical economic component that runs straight through Main Street. . .

Almost 4% of U.S. gross domestic product is auto-related and represents 10% of U.S. industrial production by value. One out of every 10 U.S. jobs is auto-related, and auto workers receive $335 billion annually in compensation. Specifically, GM, Ford and Chrysler account for roughly 70 percent of U.S. auto production and are estimated to support around five million jobs across all 50 states.

Over the last two decades, America's domestic auto industry has invested nearly a quarter of a trillion dollars in the U.S., including $10 billion alone last year. The industry also spends $12 billion annually in R&D in U.S., which is among the top industries such as aerospace, medical equipment and computer/electronic industries.

Supports maintenance and growth of supply base. The auto industry purchased last year $156 billion in U.S. auto parts supporting jobs in all 50 states and is the largest purchaser of U.S. steel, aluminum, iron, copper, plastics, rubber and electronic and computer chips.

Enables auto industry to continue to meet extensive obligations. . .Families depend on a healthy industry that provides healthcare benefits to two million Americans and supports nearly 800,000 retirees and spouses with pension benefits.

Enables thousands of dealers to survive and prosper. . .Throughout towns in every state in America, over 20,000 automobile dealers provide high paying jobs for over 1 million employees.

Autos account for $690 billion, or about 20% of all U.S. retail sales.

Auto sales generate more than $10 billion dollars of annual tax revenue (sales tax, registration fees, payroll taxes) which for many states is among their top sources for revenue.

Many U.S. financial firms are staked to a healthy auto industry because many have provided credit to manufacturers, hold their bonds and have financed the purchase of their vehicles. Millions of Americans also hold auto stocks and/or bonds that are held in mutual funds, 401(k) plans and pensions.

13-Nov-08 11:00 AM

The New Agenda for Minority Business Development

Louis Green — Tue, 13 Nov 2007 17:00:00 GMT

The New Agenda for Minority Business Development

Report Highlights Public/Private Sector Strategies to Close the Gap between Minority Business and the Broader Business Community

Impressive gains made by minority-owned businesses over the past few years stand to be squandered unless new growth strategies are adapted to compete in a rapidly changing business market, according to a study by The Boston Consulting Group (BCG).

The report, The New Agenda for Minority Business Development, sponsored by the Ewing Marion Kauffman Foundation, Kansas City, Missouri, argues that minority businesses are not maintaining pace with the larger U.S. business community and that a change of "mindset" is required to ensure sustained growth. The study further states that it is necessary for minority businesses to work with corporations as well as government agencies to better adjust and take advantage of the changing global marketplace.

"Encouraging minorities to start new businesses will still be a priority. But a second and equally important objective is to ensure that existing minority businesses are taking the necessary steps to achieve substantive growth," said Carl J. Schramm, President and CEO of the Kauffman Foundation. "This issue has never been more relevant or important than it is today."

Minorities currently represent approximately 28 percent of the U.S. population and own 15 percent of all U.S. businesses. Though the ownership figures may seem low at first glance, they represent significant progress. Between 1982 and 1997, for example, the number of minority-owned firms increased at a rate of 8.5 percent per year - three times that of U.S. business overall, according to the Census Bureau. Revenues from minority-owned firms increased at an annual rate of 10 percent per year.

But what was considered "business as usual" just a few years ago no longer exists. The same global dynamics that are changing the face of business in general - from the outsourcing of manufacturing and services to new trends in "supply-chain" management - make change necessary for minority businesses. The most important change is size.

"The pace required to compete in today's global economy is furious and minority-owned firms must improve their capabilities in many areas to become and remain competitive," said James Lowry, a senior vice president of BCG and the report's author. "It's critical we understand that significant growth - in size and revenue - must remain a primary goal for the future. Past models are no longer sufficient to ensure an expanded role for minority entrepreneurs in the U.S. free enterprise system. A collaborative effort between corporations, government, foundations, major universities - and minority entrepreneurs - is required to ensure these businesses grow beyond current performance plateaus."

The study points out that while there is an increase in the number of large minority-owned firms targeting specific high-growth niches, such as finance and real estate, the numbers are still small, and these firms are struggling to provide high-quality goods and services for major corporate clients, and cope with global supply chain management pressures.

Key to closing the gap, and positioning minority businesses for dramatic growth, say the researchers, is the urgent need for minority-owned businesses - working with their supporters - to pursue more opportunities in growth industries and to employ more innovative growth strategies such as strategic alliances and partnerships, mergers & acquisitions, increased use of capital markets and quicker response to trends in supply chain management.

The report highlights numerous tactics for improving the state of minority business development:

Diversify or expand into growth industries. Minority-owned businesses account for a larger percentage of low-growth businesses, such as personal services, food stores and restaurants, than the general business community. These low-growth business sectors represent nearly 30 percent of all employment in minority-owned firms vs. 17 percent in non-minority firms. Further, BCG estimates there are only 20-25 minority-owned businesses with revenues exceeding $500 million. Minority entrepreneurs need to focus on opportunities in high-growth industries such as information technology and pharmaceuticals.
Grow beyond the "sole proprietor" business ownership model. A disproportionate number of minority firms operate as sole proprietorships. For example, 82 percent of minority-owned firms are sole proprietorships versus 71 percent for non-minority firms. To move to the next level, these firms must shift from a "100 percent CEO" model to a model incorporating strong managers who will provide the capabilities necessary for sufficient growth.
Focus on better utilizing value-added products and services. Revenues per employee in many minority-owned firms are substantially lower than comparable majority-owned firms. In the manufacturing sector, majority-owned firms generate 1.5 times more revenue per employee than do minority-owned firms, whose products also tend to have a lower value added component - and therefore lower margins. This gap exists, in part, due to majority-owned businesses more effective use of technology, computer-aided design (CAD) and other automation to enhance employee productivity.
Expand the use of mergers, acquisitions and strategic partnerships. Because many minority businesses are smaller with fewer resources, they often have made limited use of alliances and partnerships with majority companies and among themselves. Minority-owned firms that have formed these alliances frequently have improved performance and experienced growth.
Utilize the capabilities of the financial markets. Historically, minority-owned businesses have avoided pursuing private and equity financing, often because of limited options. Financiers now understand that funding minority-owned businesses can offer lucrative investment opportunities, allowing minority-owned firms to take advantage of new opportunities to access the financing necessary to grow their businesses.
Respond to major trends in supply chain management. There are clear opportunities for minority-owned firms to take advantage of alliances and other relationships with major corporations to leverage the power of more sophisticated supply chain management strategies needed to compete in today's global marketplace.

A new agenda for growing minority businesses requires support from multiple players including major corporations, government at all levels, foundations, academic institutions and most importantly, the minority businesses themselves. The report concludes that these combined efforts are now needed to capture the full potential of America's fastest growing population demographic. The creation of a new cadre of business and civic leaders and entrepreneurial partners will foster increased economic development (particularly in inner cities) and enable minority-businesses to fully compete in the global marketplace.

The report defines minority-owned business as a business that is at least 51 percent owned and controlled by one or more members of the following minority groups:

African Americans
Hispanic Americans (Mexican, Cuban, South American, Puerto Rican or other Hispanic or Latino Americans)
Asian and Pacific Islander Americans (Asian Indian, Chinese, Filipino, Japanese, Korean, Vietnamese or other Asian Americans)
Native Americans and Alaskan Native Americans

13-Nov-07 11:00 AM