Tech Connect

A R I Z O N A’ S

TECHNOLOGY MAGAZINE

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JUST A THOUGHT

MARCH 23, 2012

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A R I Z O N A’ S

TECHNOLOGY MAGAZINE

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On the Cover :: The Aerospace & Defense Issue

ON guaRD

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THE aEROSPaCE & DEFENSE iSSuE

Arizona companies defend against military budget cuts.

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HONEYWELL aEROSPaCE

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iNTERNaTiONaL

Arizona Commerce Authority

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Arizona team makes new Boeing 787 a dream come true.

A&D exports put Arizona companies on the map.

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InnerView

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ViCKi PaNHuiSE

Meet Arizona’s ambassador of A&D.

F-35

Hope still alive for fighter jet to call Luke AFB home.

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Efforts underway to have FAA OK test sites in Arizona.

Arizona Technology Council

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iNNOVaTiON DaY

Researchers get their moment of glory in Tucson.

Contact us :: editor@techconnectmag.com

In Every Issue 012 The University of Arizona 013 Arizona State University 014 Northern Arizona University 015 TGen 018 Capitol Watch 028 Just a Thought

EDiTOR Don Rodriguez aRT DiRECTOR Jim Nissen, Switch Studio

Change is in the Air

DESigNERS Elizabeth Dam Marisa Bigler CONTRiBuTiNg WRiTERS Karen Dickinson Joe Kullman Patrick O’Grady Sylvia Somerville Bruce A. Wrignt Steve Yozwiak aDVERTiSiNg DiRECTOR Mike Mall

E-maiL editor@techconnectmag.com For queries or customer service, call 60-527-1184.

Entire contents copyright 2012, Phoenix Business Journal. Reproduction in whole or in part without permission is prohibited.

Products named in these pages are trade names or trademarks of their respective companies. All rights reserved.

A&D just the start for this year elcome to the first issue of TechConnect of 2012. We’ve made some changes and hopefully you’ll like what you see. Nothing major, but it’s a shift in the magazine’s content that aims to mirror some not-sosubtle shifts in where the technology industries in Arizona are heading.

There is a lot of talk about how the major economic development groups such as the Greater Phoenix Economic Council and the Arizona Commerce Authority are refining their games to better target technology industries that aren’t just serving the state today, but will be the bedrock for industries into Arizona’s second century.

Our intent is to focus on developments in these industries. For this issue, we take a look at the aerospace and defense industry, one of the state’s leading employers.

Its challenge will be moving forward as the military’s role on national and international levels change.

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There are plenty of questions about what the Pentagon’s budget will be going into the federal government’s next fi scal year, and what that means to the projects that companies already are working on. That includes the F-35, the nextgeneration fighter that is supposed to land some training operations at Luke Air Force Base in Glendale, but has drawn reviews from lawmakers who are looking at cuts. Such a move could have implications from Luke operations to a local supply chain that officials are hoping will spring up.

Our goal is to give readers a feel for the issues major and minor floating through the region. That can include how to focus on international business for a small company to what is going on in the software and web-based sector. We’ll also feature the state’s three universities, which are looking to take some of the pure research they are doing and find new ways to bring that to the private sector.

PATRICK O’GRADY Reporter/ Blogger

www.bizjournals.com/phoenix

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PuBLiSHER Don Henninger

Also joining us on these pages is the Arizona Technology Council, which will have a section to update readers on what is going on among its members. The Arizona Commerce Authority also will be represented as its focus continues to be on promoting a wide swath of technology, whether that’s through luring and keeping companies in the state to its recently launched Innovation Challenge that is looking to develop the next great industries from the hundreds of start-ups already in the state.

The staff of the Phoenix Business Journal is getting more involved, and that means you’ll be hearing more from me. Editor Don Rodriguez provided some space for me to offer some thoughts, which I’ll close out the magazine with. Like my blog I have written over the past couple of years, it will focus on a lot of the issues going on in the state.

Sometimes it will be broadbased and sometimes there will be something truly neat going on that needs to be brought to a larger audience.

There is a lot going on in this state. More than we can get to within these pages every quarter. That’s what makes it an exciting time for the state’s technology industry. We’re looking forward to painting some of that picture for people and providing a vision that Arizona has a lot more to offer the national and global technology sector than has generally been presented.

So enjoy and feel free to connect with us about what you’re seeing out there.

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what’s possible when bold thinking, creative design and innovative technology converge to create a truly unique breakthrough in commercial aviation,” he says.

It doesn’t end there. Now that the 787 has entered service, Honeywell will work closely with Boeing and airline operators to begin seamless introduction into their fleets around the world. And already underway are activities to create the 787-9, a larger version of the 787-8 just introduced.

“We look forward to working closely with Boeing in further growing its 787 fleet in order to meet the increased demands of the global aviation market” Douglass says.

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Honeywell hits new levels with its innovations in 787

t’s the moment that commercial aviation observers have been anticipating: The Boeing 787 Dreamliner is a reality. For Phoenix-based Honeywell Aerospace, their role in this milestone is cause for pride.

“This aircraft breaks new boundaries in range, comfort, innovative design and fuel efficiency,” says Dave Douglass, vice president of Boeing business, Honeywell Aerospace.

The more than 700 Arizona employees of Honeywell Aerospace are part of the company’s 1,000 workers around the world who worked for years on the development of key technologies for the aircraft. In particular, the Arizona team developed the engine valves, oil coolers and much of the avionics package.

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These components are far from run of the mill. For example, this is the most fuel-efficient airliner, Douglass says. Specifically, it is the world’s first major airliner to use composite materials for most of its construction, resulting in 20 percent less fuel consumption than the similarly sized 767. In addition, it is equipped with some of the latest avionics, flight control systems, and lighting content technology – all designed, produced and delivered by Honeywell Aerospace, he says.

For passengers, the latest avionics technology translate into efficiencies that enable them to get to their destinations safer, faster and more efficiently with less fuel burned and more comfort compared to other air transport aircraft, Douglass says. “We believe that the 787 is the result of

Honeywell Aerospace products are at the heart of the Dreamliner. Here are a few: 1

FLIGHT CONTROLS

High-integrity flight control electronics make cockpit operations more efficient and enable advanced flight safety functionality and aircraft control with weight reduction of thousands of pounds.

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NAVIGATION PACKAGE

The navigation package is comprised of systems that improve aircraft performance, reduce pilot workload, and increase route efficiencies—all working to lower operating costs.

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TAWS

The Terrain Awareness Warning System (TAWS) increases aircraft safety by using aircraft inputs along with internal databases to predict and warn of terrain or obstacles in the path of the airliner and reduce pilot workload.

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AIRCRAFT LIGHTING

Astreon™ solid-state lighting products include exterior aircraft navigation and anti-collision lights as well as interior cargo lighting. These state-of-the-art LED-based products provide a reliable, long life and energy efficient lighting.

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Arizona Laboratories for Security and Defense Research

former U.S. Air Force research lab in Mesa is generating interest among firms interested in features that include security protocols already in place.

The lab, which originally opened in 1969 and is located between PhoenixMesa Gateway Airport and Arizona State University Polytechnic campus, was leased by the city of Mesa last year. It now operates under the name Arizona Laboratories for Security and Defense Research.

Already in place are leases by firms that previously supported the Air Force and want to continue their work, says Dane Mullenix, vice president of Alion Science and Technology, which is handling property management and business recruitment for the 97,000 square-foot facility. AZLabs, as it is more commonly known, is equipped to support a variety of classified projects ranging from prototype evaluations to distributed tests and training.

There already have been inquiries from organizations involved in a variety

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THE aEROSPaCE & DEFENSE iSSuE

Ex-government lab comes back to life in Mesa

of disciplines such as human systems engineering, unmanned aircraft systems, wireless communications, and modeling and simulation, Mullenix says. In some cases, the needs would require the reconfiguration of some areas and later result in construction of additional space, he says.

Making the lab attractive are its size, a reconfigurable design, and robust communications infrastructure along with security accreditations that remain in place even after its Air Force days, Mullenix says. “The lab’s security protocols are a key aspect of its overall value,” he says. AZLabs also has access to a skilled workforce experienced in classified military research and development.

Alion is wrapping up an initial phase of redevelopment focused on such tasks as inventory, cleaning, preservation and repair. In addition to the inquiries from potential tenants, Mullenix’s company has been approached about possibly hosting two key conferences later this year. “It is clear that the demand for this facility is strong and that it will emerge as an important aspect of Arizona’s considerable security and defense portfolio,” he says.

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A&D exporters need to do their homework first

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WRITING BY :: KAREN DICKINSON

obs. That’s what both the A&D sector and exports mean for Arizona.

Arizona is regularly among the top 10 states in aerospace exports. These exports totaled $1.87 billion in 2011, which was 15.6 percent of the state’s total merchandise exports. As Arizona’s Aerospace & Defense Commission has stated: “Arizona has always attracted a certain type of person – the pathfinder, the builder, the explorer. That is why industries that depend on innovation to survive, like Aerospace and Defense, have prospered in Arizona.”

It is our explorer spirit that will continue to boost the state’s A&D exports.

The opportunities for exports in the A&D sector include products such as electricity and signal testing instruments, high-speed drives and gears, power transmission equipment,

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and fluid power process machinery.

An Arizona A&D company looking to export will first want to identify the most lucrative potential markets. It will need: • Country-specific information detailing market size, distribution channels, and major in-country players.

• Reference materials/sources for the industry, including trade journals, associations and promotional events.

• Reports on worldwide trends in primary target areas.

Once the markets best for business are determined, a company’s leadership needs to identify potential buyers, agents, distributors, end users or strategic partners. Help is available from Arizona’s U.S. Export Assistance Center at http://export.gov/arizona.

The A&D exporter needs to understand export regulations if sending products or services. In particular, the exporter should be very familiar with International Traffic in Arms Regulations (ITAR) or find someone who is to help. ITAR limits export of defense-related information to U.S. individuals and companies unless Department of State authorization is secured.

Companies face heavy fines if they provide non-U.S. persons with access to ITAR-regulated products, services or technical data without approval.

And, access means not just physically sending products or information; it also means sharing information over the phone, e-mail or in person with a nonU.S. person who happens to be in the United States. Even the potential for access is an ITAR violation. If you travel overseas with restricted information on your laptop, you may be in trouble even if you never open it.

While there are great global opportunities for A&D companies, an exporter in the sector should implement internal export compliance programs. If a company plans on exporting products that require authorization under ITAR, it needs a technology transfer control plan specific to that product. This is a complex area with a number of minefields, so make sure you get help before implementing an export plan to avoid unexpected costs and fines gobbling up your export profits!

Karen Dickinson is an international business and intellectual property attorney at Quarles & Brady in Phoenix and chair of the Arizona District Export Council.

+ GET CONNECTED karendickinsononinternational.wordpress.com

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Vicki Panhuise

Chairwoman of the Aerospace & Defense Growth Sector at Arizona Commerce Authority Chairwoman of theArizona State Aerospace & Defense Commission Owner and president of VePoint Consulting Group LLC

talent. Industrial partners should supplement formal education with field trips, internships and presentations. In addition, economic development partners, government, industry and academia must continue to work together on cluster strategies and actions so that we can be successful.

WRITING BY :: PATRICK O'GRADY

hen it comes to being competitive in the aerospace and defense business, Arizona companies cannot just leave it all to luck. That’s where Vicki Panhuise comes in.

As the chair of two A&D groups, she is charged with helping the state stay on course. TechConnect asked her to give readers a sense of where Arizona stands.

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What are the challenges to the state’s aerospace and defense sector?

The biggest challenge is effectively communicating our story. There is so much enthusiasm for this broad sector and the associated technologies that the biggest challenge is keeping everyone informed. We hope to have this challenge addressed with the launching of the new aerospace and defense Web site along with the supply chain database.

What types of stimulus/incentives are needed to attract more in the cluster?

Arizona must trade on its reputation as a business-friendly state by continuing current tax incentives and working to streamline the regulatory framework that governs business in the state.

How will global economies affect Arizona’s industry and what will need to be done to make connections with clusters in other countries?

International partners are an important part of the integrated supply chain for Arizona companies for supply and demand. ACA (Arizona Commerce Authority) can help by reaching out to its counterparts and key trading partners throughout the globe. The international division under the leadership of Senior Vice President Hank Marshall has been instrumental in forging productive relationships.

How strong is the state’s cluster in relationship to others around the world?

Extremely strong. We are the best kept secret. We have over 1,200 aerospace companies within the supply chain.

Aerospace and defense primes, such as Raytheon, Boeing, Northrop Grumman, General Dynamics and Honeywell, are well-represented in Arizona, and we have a very strong network of suppliers and derivative business.

What groups need to work together to ensure the success of the cluster?

Industry and school systems must be partners in the effort to develop Arizona

—Vicki Panhuise Where does Arizona need to focus educationally to keep driving the technology talent in aerospace and defense?

The focus needs to continue to be on STEM education, getting the younger generation interested and involved in solving problems. Many of our educational institutions have started to do this, and that will continue to encourage the interest of the youth. For example, teaching how to program robots will encompass how to put together a robot, how to program it and how to configure pieces so that it moves. Simple objectives like teaching about robots or launching rockets all help to start a love of learning, especially in STEM areas. Over the years a love of learning will encourage out of the box thinking and creative problem solving. Basic science skills developed during younger years will enable a natural progression to the more complex skills required by aerospace and defense.

+ GET CONNECTED www.azaerospace.com

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Meet the head of Arizona's A&D effort

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Top Gun

Industry and school systems must be partners in the effort to develop Arizona talent.

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Proposed budget cuts leave Arizona defense industry with short-term caution and long-range optimism

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WRITING BY :: DON RODRIGUEZ PATRICK O’GRADY AND BRUCE A. WRIGHT

lease, fasten your seatbelts.

It’s going to be a bumpy ride.

This airborne warning might best describe what lies on the horizon as Arizona’s defense industry braces to see i f Fiscal 2013 budget cuts proposed by President Obama come to pass at the level he recommended. While such a move definitely wouldn’t spell the end of a segment of the state’s economy filled with promise, in the short term it could make for tough times among some contractors in the state.

For Tempe-based Kinetx Aerospace, which provides engineering, technology, software development and business consulting services, the impact could be

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quite significant since half of its work is defense-related, says Glenn Williamson, the firm’s chairman and president. He is already hearing from prime contractors his firm works for that some of the larger projects in Phoenix are being cut.

Factoring in the double whammy of doing classified work for the Department of Defense (DoD) and issues related to International Traffic in Arms Regulations, getting new customers for Williamson’s company isn’t as easy as making a few phone calls. Still, “we are starting with Canada because it is the easiest for U.S.-based DoD contractors,” he says.

The impact is even felt as far south as Sierra Vista, whose proximity to Fort Huachuca underscores why

MAJOR EMPLOYERS

These are some of the major aerospace and defense employers in Arizona.

Abrams Airborne Manufacturing Inc. Boeing Bombardier Aerospace B/E Aerospace General Dynamics Global Aircraft Solutions Honeywell Aerospace Lockheed Martin Northrop Grumman Paragon Space Development Corporation Raytheon Missile Systems Sargent Aerospace & Defense Universal Avionics Systems

Among the larger contractors themselves, “now we see more partnerships” as they reach out to one another to check the potential of working together on projects, Hollis says. “We’re all just a little nervous,”

“WE’RE ALL JUST A LITTLE NERVOUS, AND THAT COULD BE AN UNDERSTATEMENT.”

—MIGNONNE HOLLIS, EXECUTIVE DIRECTOR OF THE SIERRA VISTA ECONOMIC DEVELOPMENT FOUNDATION

jets. The proposal calls for the military buying 29 F-35s during the next year— two less than this year—to save about $75 million.

With the budget trim at the 4 percent level, there is still room for optimism that the defense sector will keep buzzing as a whole. “There are still important growth areas for our military services, including UAS by the military, cyber security technologies and intelligence, surveillance and reconnaissance technologies,” says Vicki Panhuise, chairwoman of both

FOR THE FUTURE

The infrastructure is already in place for the next generation of military hardware. Panhuise notes the state hosts a broad range of our aerospace and engineering research facilities, including the Arizona Laboratories for Security and Defense, certified for classified research in Mesa; and the research at The University of Arizona, Arizona State University, Embry-Riddle Aeronautical University and Northern Arizona University. In addition, Cochise College-Northrop Grumman

THE aEROSPaCE & DEFENSE iSSuE

IN IT TOGETHER

about the proposed cuts, she says, “and that could be an understatement.”

The cuts come as the Pentagon tries to save about $260 billion during the next five years. Among the major proposed cuts is a reduction in the size of the military during that time to save $50 billion. Closer to home there is interest in the development of the F-35 as Luke Air Force Base is in the running to be the home of the fighter

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defense contractors of all sizes are there. For some of the smaller firms, 100 percent of their business is defense, says Mignonne Hollis, executive director of the Sierra Vista Economic Development Foundation. For example, there have been some layoffs already among contractors working on unmanned aircraft systems projects at the Fort’s Black Tower Training Facility as some of the work is taken on by the government itself.

The risks faced by smaller government contractors is a reason the foundation is allotting space for the new contractors when it moves into new headquarters in a few months. Four companies already have committed to using the offices, conference rooms and cubicles, Hollis says. Her group is even talking with officials at Tucson Regional Economic Opportunities (TREO) to allow smaller contractors to use space if they need to be in Sierra Vista and vice versa. “That’s the only to do things these days: through collaboration,” she says.

the Arizona State Aerospace & Defense Commission and the Aerospace & Defense Growth Sector at Arizona Commerce Authority.

And it’s not just about the large companies. Panhuise says there is a focus on the smaller manufacturers by promoting the workforce development opportunities within the state as well as getting the word out regarding the available grant opportunities and certification programs. Also, grants with the federal government make it possible to offer gold key “matchmaking” opportunities to pair small businesses for increasing their exports, she says.

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THERE ARE STILL IMPORTANT GROWTH AREAS FOR OUR MILITARY SERVICES.

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— VICKI PANHUISE, CHAIRWOMAN OF ARIZONA AEROSPACE AND DEFENSE PANELS Innovation Campus offers associate degrees in UAS flight operations and systems technicians.

In years to come, southern Arizona especially will continue to be a player because the region has its sights set high. “One of every five workers in the Tucson region is employed in aerospace and defense,” says Joe Snell, president and CEO of TREO. “This is who we are. Growing this industry even 1 percent would have an enormous ripple effect throughout our economy.”

To enhance Tucson’s position as an industry leader, Pima County Administrator Chuck Huckelberry is promoting the development of an aerospace and defense corridor bounded roughly by The University of Arizona Science and Technology

Park, the UA BioPark, and Tucson International Airport. He has proposed a $230 million package of transportation infrastructure improvements and property purchases that would boost the region’s attractiveness to aerospace and defense firms. The package will be presented to voters for approval in 2013.

The region also looks to projected growth in the aerospace industry over the next decade as U.S. and international airlines begin the process of replacing their aging fleets with new aircraft. The Arizona-Mexico Commission in partnership with TREO and the UA Tech Park are exploring the opportunities for joint ventures with Mexican companies that produce and assemble high-value aircraft components and instruments.

On the whole, “the aerospace and defense segment continues to have opportunities for our state,” Panhuise says. + GET CONNECTED www.azaerospace.com www.kinetx.com www.svedf.org www.treoaz.org www.uatechpark.org

THE WAITING GAME t

at about $5 billion each over the life of the jet program.

Further, Lockheed Martin says the F-35 program has 1,300 domestic suppliers in 47 states and Puerto Rico to produce the thousands of needed components—from sophisticated radar sensors to the aircraft’s mid fuselage.

In its first nine years, the F-35 has put $60 billion into the U.S. economy, the defense contractor estimates.

According to Fighter Country Partnership, a non-military organization that supports the efforts of Luke, its personnel and their families, an infusion of $125 million to $150 million in construction-related projects is anticipated if the mission is assigned to the base. That translates into additional employment and construction jobs, wages, consumer spending and investments throughout the West Valley and state. And that’s outside the supply chain that could serve the jets at Luke in the future.

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expected by the jets. Recent public hearings were heavily attended by people who said they now favor the mission. For now, they have to wait and see.

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THE aEROSPaCE & DEFENSE iSSuE

alk about your holding pattern.

Luke Air Force Base officials and supporters are waiting for news that will tell them whether the base will secure the F-35 training mission. In plain talk: whether this next generation fighter jet will call the base home. For members of the local supply chain, this could be big.

Actually, Arizona’s technology community already has a stake in development of the F-35 no matter when it land.

According to Lockheed Martin, which developed the jet, Honeywell Aerospace’s Defense & Space Electronic Systems is providing the radar altimeter, inertial navigation and global positioning system, and air data transducers. Also, the Air & Fuel Division of Parker Aerospace’s Tolleson site is creating the fuel system.

Each manufacturer estimates the value of their contracts

Those numbers no doubt helped bring around support from Luke’s neighboring communities that earlier complained about the noise

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Luke supporters hope to hear the F-35 will be stationed here

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New Heights

Southern Arizona’s aerospace and defense industry is ready W RITING BY :: BRUCE A. W RIGHT

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Border Security and Immigration (BORDERS) at the university. The center works with a diverse group of federal and university partners to develop new technologies, processes, and policies to protect our borders while fostering cross-border trade.

The UA Tech Park is emerging as a major center for testing and evaluating large-scale engineering projects, including those related to border security. At the park’s proposed Border Testing and Evaluation Center (BTec), companies will be able to test, evaluate and demonstrate border security technologies deployed in conditions closely matching those in which they will be used. The BTec will enable industry to test and certify their existing and new technology for use by government and industry.

By building on its existing strengths, Southern Arizona is strongly positioned to be a world leader in the aerospace and defense industr y, creating additional jobs and bringing greater prosperity to the region.

lthough Southern Arizona’s clear skies and open spaces make it an appealing location for the aerospace industry, it was the colorful industrialist and aviator Howard R. Hughes, Jr., who first put Tucson on the world’s aviation map.

In the early 1950s, the Hughes Aircraft Company broke ground for a new manufacturing plant in the remote desert on the south side of town. Today that company is Raytheon, a pillar of Tucson’s aerospace and defense industry, and the largest private employer in the region. Raytheon is one of more than 200 aerospace and defense companies that call Tucson home.

According to Tucson Regional Economic Opportunities (TREO), Tucson ranks in the top five metropolitan areas nationwide for its concentration of employment in aerospace and defense. Between 20,000 and 30,000 people work in the aerospace and defense industry, which generates $5 billion to $6 billion in revenues annually. In addition to Raytheon, the region’s list of aerospace and defense companies is impressive,

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including giants such as Bombardier Aerospace, General Dynamics, Honeywell Aerospace, and Lockheed Martin.

Their industry leadership is complemented by the University of Arizona’s longstanding commitment to aerospace and defense research.

Expertise within the university’s Engineering, Optical Science and Science colleges as well as the Eller College of Management’s Department of Management Information Systems contribute to the university’s core competencies in fields that range from fluid dynamics, aerodynamics and new materials to cyber security, artificial intelligence and anti-terrorism systems.

Most recently, the university has broadened its aerospace and defense research enterprise to encompass a strong emphasis on border technology and security. Many of the core technologies in aerospace and defense within the university as well as among defense and aerospace companies in the Tucson region area have application in border security, operations, and management.

Several of these initiatives are under the aegis of the National Center for

Raytheon’s Standard Missile-3 Bruce A. Wright is associate vice president for University Research Parks at The University of Arizona.

+ GET CONNECTED www.raytheon.com www.uatechpark.org

ASU and Intel partner to enhance higher education in Vietnam W RITING BY :: JOE KULL M AN

rizona State University and Intel Corp. recently renewed a joint commitment to help improve higher education and technological development in Vietnam.

Working with the Vietnamese Ministry of Education and Training, they have reached an agreement to expand the Higher Engineering Education Alliance Program (HEEAP). Established in 2010 with an initial $5 million grant from the United States Agency of International Development (USAID) and Intel, the HEEAP project is administered through the Office of Global Outreach and Extended Education in ASU’s Ira A. Fulton Schools of Engineering.

Since its inception, the HEEAP alliance has been joined by Portland State University’s Maseeh College of Engineering and Computer Science, and industry partners Siemens, Danaher and Cadence.

HEEAP’s mission is to modernize teaching and learning methods in Vietnam’s school s of higher education as a way to support economic development in the country. The program is providing a model for advancing engineering education to prepare engineers to support Vietnam’s growing high-tech industry.

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In the long run, the program is expected to open doors to collaborative research and education efforts that will have impacts on economic growth in Arizona and elsewhere in the United States.

At a recent summit meeting, leaders from the Vietnamese government and universities joined ASU and U.S. industry partners to discuss the model and the best strategies to support the transformation of Vietnam’s national education system. “This is an evolving relationship between the U.S. and Vietnam to enhance teaching, learning and discovery, and support strong economic development,” said ASU President Michael Crow.

Opening the Door

The expanded investment commitment from the Ministry of Education and Training and Intel “will allow the HEEAP alliance to rapidly scale up the modernization of English-instructed undergraduate engineering programs modeling ABET- accredited programs in the United States,” said Jeffrey Goss, an assistant dean in the Ira A. Fulton Schools of Engineering who directs the Global Outreach and Extended Education office.

“This will also further open the door for Vietnamese and American engineering programs to work together to develop additional global engineering research, student exchange programs and other innovative partnerships,” Goss said.

The partnerships with leading technical universities and vocational colleges in Vietnam has so far enabled more than 100 faculty members from Vietnam engineering colleges to participate in instruction training programs at ASU and in Vietnam.

The new agreement, supported by a funding investment, will enable the program to increase the number of faculty members receiving training in the HEEAP education model. “This collaboration has been instrumental in advancing our goals,” said Nguyen Vinh Hien, vice minister of Vietnam’s Ministry of Education and Training, “but we still have a need for more fundamental and comprehensive renovation of our higher education system.”

The new agreement will also support development of a distance-education network that will enable students at multiple campuses in Vietnam to take the same courses simultaneously. That distance-education network will benefit from the expertise of ASU’s online engineering education program, which has been earning recognition for quality and innovation.

In recent national rankings by U.S. News & World Report, ASU’s engineering schools place number two for student services and for the quality of technology employed in an online graduate engineering program. In addition, the HEAPP agreement will expand a program to train Vietnamese education leaders in modern administrative, revenue-enhancement and policy development models necessary to build regionally and globally competitive institutions.

Joe Kullman is the senior media relations officer for the Ira A. Fulton Schools of Engineering at Arizona State University: http://engineering.asu.edu/

+ GET CONNECTED Higher Engineering Education Alliance Program: heeap.org

THE aEROSPaCE & DEFENSE iSSuE

Reaching Out

Arizona State University President Michael Crow is joined by Nguyen Vinh Hien, vice minister of the Ministry of Education and Training and Steve Megli, Intel Active Management Technology senior vice president and general manager, to renew an agreement to support modernization of engineering education in Vietnam.

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{ UPDATE::ASU }

Modeling and power-harvesting applications for magnetic shape memory alloys

NAU Assistant Professor Constantin Ciocanel

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Faculty on leading edge of smart materials research

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n Northern Arizona University (NAU) laboratories, teams of researchers are studying ways to make the aerospace, defense, and other industries more energy efficient and less fossil-fuel dependent.

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Storing power in composites

One cutting-edge project, involving faculty and students from NAU’s engineering and chemistry departments, focuses on a way to add an electrical-storage component to carbonfiber-based composite materials. These composites, which are lightweight yet strong enough to withstand harsh loading conditions, are being used in high-performance applications in many industries— from medical devices and sporting equipment to aerospace components, such as tails, wings, fuselages, propellers, and heat shields.

Now imagine the possibility of enhancing these materials by embedding them with an electrical storage capacity, says Constantin Ciocanel, NAU assistant professor (mechanical engineering). In an aircraft, for example, the sidewall

panels could double as an energystorage device that could be charged when the aircraft is in between f lights or during less energydemanding stages of f light. Having this embedded, electricity-storage capability would reduce the need for batteries or other on-board power-storage devices, leading to a reduction in the aircraft’s weight and, correspondingly, to a decrease in fuel consumption.

Built-in backup energy would also enhance the performance of cars, portable electronic devices, wind turbines, and other products. “One’s imagination is the limit on how this can be used,” says Ciocanel.

The key to this innovation is a resin being developed by Ciocanel and Cindy Browder, NAU associate professor (organic chemistry). As the resin interfaces with carbon fiber stacks, it allows electricity to be stored without compromising the strength or longevity of the material.

(There is no chemical reaction so the composite doesn’t deteriorate.)

Plans are under way to make the power-storage composite completely sustainable—built from renewable sources that are biodegradable.

Another groundbreaking NAU project is focused on the modeling of magnetic shape memory alloys (MSMAs) under complex loading conditions. Successfully developing a model will allow engineers to design MSMA-based power harvesters, actuators, or sensors. This collaborative project within NAU’s mechanical engineering department involves both theoretical and practical breakthroughs.

“Current models are excessively simple.

They restrict loading to one direction,” says Heidi Feigenbaum, NAU assistant professor (mechanical engineering).

“Our model is much more complex.”

MSMAs exhibit up to 6 percent strain when subjected to a magnetic field and no mechanical stress. The strain or growth of the material is accompanied by a change in magnetization, which can be harnessed into voltage by placing a pick-up coil around the specimen. Also, because the strain in MSMAs is very fast (unlike in regular shape memory alloys), the material can be used for actuation or sensing applications.

Although power-harvesting research is currently being conducted in the laboratory, the process can easily take place in nature. “For example, if a MSMA power harvester were to be placed in a tree in a forest and moving branches pushed against it, the alloy could deform, and the pickup coil could harvest the released energy,” Ciocanel explains. “If a humidity monitor were attached to the power harvester, you would not have to use batteries to power the sensor. You would use wind energy instead.”

These are just two examples of some of the innovative, far-reaching projects being developed by NAU faculty members and the students who work with them. Each year two graduate students and four or five undergraduate students have an opportunity to work with Ciocanel and his research partners—invaluable hands-on, realworld experience that has contributed to the increasing number of mechanical engineering majors at NAU. Sylvia Somerville is a writer and editor in Northern Arizona University’s research division.

+ GET CONNECTED www.research.nau.edu

Division and head of the Melanoma Therapeutics Lab. His work is focused on applying genomic tools to study melanoma, and he is recognized for this as well as his work in translational medicine and will act as the principal investigator overseeing translational research of this Dream Team project.

Dream Team Grant helps TGen unite in battle against deadly skin cancer WRITING BY :: STEVE YOZWIAK

he Translational Genomics Research Institute (TGen) and the Barbara Ann Karmanos Cancer Institute will lead a $6 million national and international study of a deadly type of skin cancer.

This unique clinical study will pursue new therapies for a type of melanoma known as BRAF Wild-Type, for which there are few treatment options.

Melanoma is the most dangerous form of skin cancer.

Stand Up To Cancer (SU2C) and the Melanoma Research Alliance (MRA) are funding the study. The SU2C-MRA Melanoma Dream Team Translational Cancer Research Grant provides $6 million for three years.

The project is intended to accelerate the application of new therapeutic agents, quickly moving new scientific discoveries to clinics where they can immediately benefit patients. In

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the U.S., nearly 70,000 people are diagnosed with melanoma each year.

Someone dies from melanoma every hour; about 8,000 annually.

The study will be headed by SU2CMRA Dream Team leaders Jeffrey Trent, president and research director at TGen in Phoenix, and Dr. Patricia LoRusso, director of the Eisenberg Center for Experimental Therapeutics at the Karmanos Cancer Institute in Detroit.

“The Stand Up To Cancer-Melanoma Research Alliance grant gives us the remarkable ability to align cutting edge researchers across the globe to join forces to defeat this terrible disease,” says Trent, an internationally recognized expert in molecular-based systems biology approaches to cancer who will supervise patients’ genetic and genomic sequencing, spelling out their DNA. Trent also is a professor in TGen’s Genetic Basis of Human Disease

Steve Yozwiak is senior science writer at the Translational Genomics Research Institute (TGen).

+ GET CONNECTED A video featuring the Dream Team leaders is available at: www.interdubs.com/r/su2c/filfo/31/68/3168/ Melanoma_DT_v8.mov.

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Jeffrey Trent

“We hope to use this unique multistage clinical investigation to define new treatments that will produce benefits for metastatic melanoma patients, based on extensive genomic profiling.

We have great scientists and clinicians from across the nation who will join forces on this,” says LoRusso, who will supervise the selection of patients, tissue samples and clinical trials research.

LoRusso also is a principal Investigator for the Barbara Ann Karmanos Cancer Institute’s National Cancer Insitute-UO1-funded phase I program, and professor of oncology at Karmanos Cancer Institute and Wayne State University School of Medicine in Detroit. She is a leading clinical investigator in early developmental therapeutics and will act as principal investigator for the clinical trials, overseeing all clinical aspects of this Dream Team project.

The new study will involve nearly 50 scientists and 150 patients at more than a dozen institutes. In Arizona, TGen’s collaborators on the study include Mayo Clinic and The Biodesign Institute at Arizona State University. Also contributing is TGen’s affiliate institute, the Van Andel Research Institute in Grand Rapids, Mich. One of the study’s key advocates is Derrick Hall, president of the Arizona Diamondbacks.

Of the six Dream Team grants issued

by SU2C since its start in 2008, this is the second awarded to TGen. In May 2009, TGen and the University of Pennsylvania received a SU2C grant to study new approaches for treating pancreatic cancer.

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Arizona is engaged to become unmanned aircraft system test site he Arizona Commerce Authority (ACA) is leading the effort to encourage the Federal Aviation Administration (FAA) to locate one of the six U.S. unmanned aircraft system testing sites in Arizona.

The aircraft systems commonly known as UASs are already being used on a test basis by both domestic and foreign law enforcement, but will soon have widespread applications for agriculture, forest management, atmospheric research, and wildlife management. In addition, civilian authorities will require assurance of the safety and reliability of UAS before they allow unmanned aircraft vehicles (UAVs) to operate widely in civilian airspace. Comprehensive testing is a key strategy in assuring safety and reliability.

Seeing the important economic contributors this sector has—and will continue to have—in Arizona and around the globe, the ACA has engaged a team of experts in this field and is working on a collaborative strategy to encourage the FAA to select Arizona for one of the sites.

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Right Place

Among the many messages the ACA is taking to Washington, DC: Arizona is already the de-facto leader in UAS testing. Fort Huachuca is the largest UAS training center in the world and has already certified more than 10,000 UAS operators. Expanding on this success in the military sector to the civilian sector is a natural progression. Arizona already has a strong UAS testing culture, and the specialized knowledge and skill required are already available in our state. Arizona’s climate is perfect for maximizing return on investment in a UAS test site. UAS is more than just planes, as the system includes significant infrastructure (e.g., ground control).

The state provides more than 350 days of suitable flying weather annually.

Arizona’s high number of flying days means the infrastructure investment can be spread over many more testing hours than other potential sites, maximizing the return.

Arizona’s proposed options for an FAA site are close to current Department of Defense UAS operations. Much of the civilian UAS technology originates in the military sector, so physical proximity is a large benefit. Also, the specialized skills for constructing and maintaining UAS facilities have already been acquired and perfected by many of the contractors who operate in Arizona. Arizona already hosts numerous large aerospace defense contractors. Many of these contractors have active civilian UAS initiatives. Locating the test site in the state makes it easier to leverage this existing expertise. In addition to large contractors, Arizona has more than 1,300 companies in the aerospace supply chain. These companies form an ideal supplier base for the proposed UAS testing center.

Winning one of the six UAS testing designations requires close cooperation between local stakeholders, research and development resources, and Arizona’s congressional delegation. The ACA is working hand in hand with all of these groups to ensure Arizona is represented and given serious consideration for this important designation.

THIS SECTION IS SUPPORTED BY THE ARIZONA COMMERCE AUTHORITY

FAST Grants

25 small businesses awarded funds to help them succeed

DID YOU KNOW? Through a suite of programs, including the FAST Grants, the Arizona Commerce Authority is providing valuable tools to help small businesses and start-ups advance in our economy and ultimately ignite job creation in the state. This has helped start-ups become the lifeblood of Arizona’s economy and serve as a prime engine of economic growth.

This also has resulted in Arizona: • Ranking fi fth in the nation for business start-ups.

To help continue this momentum, the ACA: • Will award $3 million for the Arizona Innovation Challenge in 2012 to promising start-ups.

• Secured $18.2 million from the U.S. Department of Treasury’s Small Business Credit Initiative for debtfinancing.

• Administers the $800,000 State Trade and Export Initiative to increase Arizona businesses export opportunities. + GET CONNECTED www.azcommerce.com and click on “Incentives”

2012 ARIZONA FAST GRANT RECIPIENTS

Acudora (Tucson) Arbsource (Tempe) Arizona Cancer Therapeutics (Tucson) Castle Biosciences, Inc. (Phoenix) Colnatec (Gilbert) Cyclone ADG, LLC (Tucson) Earth Knowledge (Tucson) ECOmplete, LLC (Chandler) Fennova Corp. (Tucson) inXsol (Phoenix) Kinetic Muscles, Inc. (Tempe) Latitude Engineering, LLC (Tucson) Medipacs, Inc. (Tucson) MSDx, Inc. (Tucson) NEST Energy Services (Prescott Valley) Power Gold (Phoenix) Prime Solutions Group (Goodyear) Provista Diagnostics, Inc. (Phoenix Quaesta Instruments, LLC (Tucson) Reply Buy, Inc. (Scottsdale) Science Tomorrow, LLC (Phoenix) Serious Integrated (Chandler) Siegel Consulting, LLC (Scottsdale) Stimwave Technologies, Inc. (Scottsdale) VisionGate (Phoenix

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• Experiencing a 57 percent increase in entrepreneurial activity since 2008.

• Ranking sixth in the nation as a top entrepreneurship and innovation state.

• Ranking in the Top 10 in small business lending.

• Securing the expansion of Silicon Valley Bank, the country’s premier lending institution for venture capitalists.

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he Arizona Commerce Authority (ACA) awarded $184,832 in FAST Grants to 25 Arizona small businesses to help them initiate their commercialization processes. The awards, which range from $5,000 to $7,500 per company, can be used toward services that include technology reviews, commercialization feasibility studies, and commercialization assistance such as training or preparation for federal grant submissions.

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Open Space FAA should name Arizona a national test range for flights

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WRITING BY :: GOV. JAN BREWER

am pleased to lend my support to the efforts of the Arizona Commerce Authority (ACA) and its advisers to secure Arizona as one of the selected sites for the Federal Aviation Administration’s (FA A) national test range for the safe integration of unmanned and manned f lights in national air space.

Arizona is already the leader in many unmanned aircraft system (UAS) capabilities. The U.S. Army Yuma Proving Ground is recognized as a key asset for unmanned aircraft

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Securing one of these federal designations will be a huge win for our state. vehicle testing and Fort Huachuca is the home to the world’s largest UAS training center. Coupled with more than 350 days per year of perfect f lying weather and our state’s open airspace, Arizona is the perfect location for such an endeavor.

The ACA is working closely with the congressional delegation, the state Legislature, Arizona’s educational institutions, research laboratories, and the vibrant aerospace and defense industry to ensure our state is a selected site.

Securing one of these federal designations will be a huge win for our state. We hope to build upon the success of the existing aerospace and defense industry, which directly contributed about $300 million to state and local tax revenues and employed 39,400 people with an average annual salary of $109,000 in 2009.

Arizona is simply the best place for an FA A UAS testing site, and we stand ready to apply our diverse and proven assets to meet the requirements of the FA A and the nation. + GET CONNECTED www.azgovernor.gov

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AGM co-founder honored for commitment to quality

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Top Gun

JOYCE STEWART Winner of the Special Award from the National Institute of Packaging, Handling and Logistics Engineers (NIPHLE) Stewart is the first female recipient and the fourth overall recipient of this award.

Stewart will receive the award at the NIPHLE annual conference in late March at the Pentagon.

hen it comes to shipping technology created for the military, you can’t be too careful. In fact, you should go that extra mile.

That’s a key reason that a co-founder of AGM Container Controls in Tucson is being recognized for her company’s success.

Joyce Stewart will be honored for service and leadership in the military packaging and handling industry with the Special Award from the National Institute of Packaging, Handling and Logistics Engineers (NIPHLE) during its annual conference in late March at The Pentagon. In recognition of AGM’s extraordinary efforts, the NIPHLE’s leadership has decided to give the prize a new name, the Stewart Recognition Award, in Stewarts’s honor.

NIPHLE is a professional organization with the mission of

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improving communication between the military and packaging, handling and logistics professionals in the military/industrial defense complex.

The award has only been given four times in the past 49 years and Stewart is the fi rst woman to receive it.

Stewart and her husband, Roger, co-founded AGM Container Controls, beginning by manufacturing environmental control hardware for containers that hold missiles and other sensitive equipment. The company remains a leader in the design and manufacture of products that control and monitor moisture, pressure and vacuum changes, and shock and vibration.

AGM’s products are used for a variety of applications in defense, aerospace and electro-optical industrial and commercial markets to protect and extend the life of critical equipment, such as missiles and engines. Its

facilities have the approval of the Army, Navy, Air Force, Atomic Energy Commission and NASA. Stewart is no stranger to NIPHLE. She and her son, Howard, each are past presidents of the group. She and her husband are members of group’s National Military Packaging Hall of Fame, with Stewart being the fi rst woman to ever achieve this status. She was awarded the NIPHLE Handling Annual Achievement Award in 1994.

AGM twice was honored with the group’s Distinguished Service Award, which recognizes those fi rms that have made notable contributions to the packaging, handling and logistic profession in addition to providing significant support to NIPHLE. The company also has received accolades in other areas. In 2009 it was honored by the U.S. Chamber of Commerce with the “America’s Best Small Business” award.

• expanded academic and cocurricular experiences • enhanced faculty-student research collaboration The idea behind the initiative is for faculty and staff to get students involved in scholarly activities and facilitate research through various learning opportunities. The goal is for the students to gain the skills to investigate theories, solve problems and advance their own knowledge through various disciplines.

Ignite will launch by focusing on firstyear undergraduate students following a tiered plan. This includes coursebased research, mentored curricular/ co-curricular research and academic support services. The partnerships among faculty, staff and students will be designed to promote a culture of inquiry, engagement and collaboration.

Part of the plan is the Prescott Undergraduate Research Institute.

Embry-Riddle is creating a position for an executive director whose duties not only will include managing the day-today operations but also maintaining a project database of funded and unfunded research projects while matching faculty research mentors to student researchers.

Graduate studies also are expected to benefit from Ignite by getting undergraduate students to become better prepared for scholarly work and engaged at a higher level of learning.

The initiative isn’t just for the Prescott campus and its sister in Daytona Beach, Fla. The initiative is also for EmbryRiddle Worldwide, whose Arizona sites include Chandler, Phoenix Sky Harbor International Airport, and Luke and Davis-Monthan air force bases.

Top UA researchers get annual recognition for successes

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ignite Embry-Riddle plans for undergraduates to do research Embry-Riddle Aeronautical University is lighting a fire under its faculty and students in Prescott.

The university has unveiled a new quality enhancement plan called Ignite that focuses on encouraging undergraduate research through: • innovative research opportunities • increased research funding

THE aEROSPaCE & DEFENSE iSSuE

and evaluates these compounds for medicinal value.

Larry Head, who specializes in systems and industrial engineering.

His research on priority-based traffic signals is working to save the lives of fire and rescue first responders.

Sharon Megdal, who concentrates on state and regional water resources management and policy. Her work on environmental water needs, aquifer recharge and assessment, and planning to meet future water needs of growing, semi-arid regions contributes to improved development and understanding of state water management strategies.

James T. Schwiegerling, who is developing a design for an accommodating intraocular lens, which behaves just like the flexible human lens in the eye and can be used as a

replacement in cataract surgery.

In addition, the faculty Technology Innovation Award recipient is Dr. Ronald S. Weinstein, founding director of the award-winning Arizona Telemedicine Program. Weinstein is an internationally acclaimed academic physician who invented, patented and commercialized “telepathology,” a transformational healthcare delivery system that leverages the power of broadband telecommunications. He also pioneered original research in cancer diagnostics and the humancomputer interface, championed the translation of his inventions into commercial products, and founded companies in the technology-based sector to market their products.

The student Technology Innovation Award winner is Alexandra Armstrong, a final-year PhD candidate in veterinary sciences and microbiology, received the. Armstrong is a leading force in the area of preventing bacterial food borne diseases. Her doctoral project resulted in a novel, reproducible and effective vaccine to reduce Campylobacter jejuni, which are bacteria that cause food poisoning.

The university also recognized the accomplishments of the late Michael Drake, who had served as director of the Lunar and Planetary Laboratory.

Time to Celebrate he University of Arizona marked its ninth annual Innovation Day recently by celebrating the success in technology development and innovation through research achievements of students, staff, and faculty.

This year’s Leading Edge researchers included: Eric A. Betterton, who focuses on atmospheric and environmental chemistry exploring an atmospheric model to forecast wind-blown dust from natural and man-made sources. This research supports the development of dust forecasting technology for health and traffic advisories.

Leslie Gunatilaka, who explores novel compounds synthesized by exotic plants from the arid zones of Asia, South America and the Sonoran desert,

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COUNCIL NEWS:

Learn the latest marketing trends In addition, an expo will showcase products and services to help build marketing plans.

Cost to attend the event is $35 for Council and BMA members and $50 for non-members. The fee includes two drink tickets during the reception.

Information on sponsorships ranging from $750 to $2,500 is available by sending an e-mail at events@ aztechcouncil.org.

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The Arizona Technology Council partners with the Business Marketing Association (BMA) to host the fourth annual Marketing Technology Summit on Aug. 30 at the Hilton Scottsdale Resort & Villas, 6333 N. Scottsdale Road.

The event will be held 12:30 to 6:30 p.m. and feature a panel discussion, presentations, and keynote speaker Eduardo Conrado, senior vice president and chief marketing officer of Motorola Solutions.

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Health and Medical Technology Expo returns Following last year’s success, final plans are taking shape for the second annual Arizona Health and Medical Technology Expo.

The April 5 event is designed for provider practices looking to increase patient volumes, technology companies with innovative consumer medical products, wellness-related suppliers, companies looking to boost patient awareness of their products, and healthcare businesses looking to market their services.

The expo featuring the latest technology in the medical field will be held 12:30 to 6:30 p.m. at the Hilton Scottsdale Resort & Spa, 6333 N. Scottsdale Road. It will include a keynote speaker, free health screenings, and breakout sessions on health and technology topics by top experts in addition to one-on-one networking throughout the exhibit area.

Cost to attend is $20 for Arizona Technology Council members and $30 for non-members. The fee includes two drink tickets during the cocktail

reception. To register, go to www.aztechcouncil.org.

There also are sponsorship opportunities for the event. There sponsorship levels are Presenting ($10,000), Summit ($5,000), Cocktail Reception ($2,500) and Booth ($500). The Presenting sponsorship brings the opportunity for a company representative to appear on a panel.

The Presenting, Summit and Cocktail Reception sponsorships also allow a company representative to welcome attendees during opening remarks, verbal recognition as sponsor during opening remarks, and the company logo and link on event Web pages. All sponsors receive their company name and logo on all promotional materials and advertising, corporate name as sponsor on all event signage, and one exhibit booth in sponsor showcase in addition to event tickets.

For more information on sponsorship opportunities, contact the Arizona Technology Council at events@ aztechcouncil.org or The CORE Institute at 623-241-8700.

CEOs get chance to share their issues

Ask any CEO: It can get lonely at the top. If that’s what you face, you can count on at least two days of company at the Arizona Technology Council’s fi fth annual CEO Retreat in Sedona.

Escape the heat and head up to Red Rock Country for the Aug. 13-14 event that will bring together chief executive officers, presidents and business owners for networking, panel discussions and golf. The activities start at 11 a.m. the first day with lunch, golf at Sedona Golf Resort and an evening reception.

A 7 a.m. breakfast starts the second day followed by panels, a workshop, a keynote speaker and lunch.

The fee is $400 for council members and $500 for non-members. An additional $150 covers fees for those who golf. The room rate at the Hilton Sedona Resort & Spa, site of the panels and workshop, is $159.

For registration and other information, go to www.aztechcouncil. org. There also are sponsorships available for the retreat. For information, e-mail Leigh Goldstein at events@aztechcouncil.org.

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SPONSORS: We Proudly Present

arizona Technology Council’s Sponsors PremierSponsors ::

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VisionarySponsors ::

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®

www.oneilprint.com FOR MORE INFORMATION ABOUT SPONSORSHIP, CALL THE ARIZONA TECHNOLOGY COUNCIL AT 602.343.8324 OR VISIT AZTECHCOUNCIL.ORG

JOIN US... for the second annual Arizona Health & Medical Technology Expo.

The expo will feature cutting-edge healthcare topics and the latest technological advancements in the medical field. Attendees can expect to meet with Arizona companies who are experts and thought leaders within their fields. This year’s event includes best-in-class speakers and exhibitors, providing relevant information to every business in the health and medical technology industry.

The AZHMT Expo will offer a half day expo with a keynote speaker, free health screenings and breakout sessions on health and medical technology topics by industry authorities. In addition, attendees will enjoy one-on-one networking throughout the exhibit area. Join us to become part of Arizona’s highest profile health and medical technology expo.

WHEN

WHERE

Thursday, April 5, 2012 12:30 PM - 6:30 PM

Hilton Scottsdale Resort & Spa 6333 N. Scottsdale Rd. Scottsale, AZ 85250

Learn More www.azhmtexpo.com PRESENTED BY

THIS SECTION IS SUPPORTED BY THE ARIZONA TECHNOLOGY COUNCIL

360 Cloud Solutions

Buzz Mouth

Dynamic Computer Corp

3ThirdEye Inc

Canal Partners, LLC

Economic Incentives Advisory Group

4D Technology Corporation

Career Services at The University of Arizona

Ecotality

Acudora, Inc

Catalyst Computer Technologies LLC

Emerge.MD

Advanced Integration Technologies

Charles Schwab & Co. Inc.

Enviromission

AdVnt Biotechnologies LLC

City of Avondale

ESG Employer Solutions Group

Agilesys

City of Goodyear

Express Technology, Inc.

Aidant Fire and Security

City of Tempe, Economic Development

Fasturtle

Alerus Bank & Trust

CNA

FazTrack Technology, LLC

AmbientID

Cold Plasma Medical Technologies

Fender Musical Instruments

American Arbitration Association

Comerica Bank Arizona

First Financial Services, Inc

American Barcode and RFID

Communefx

First Solar, Inc.

Anderson Information Systems, LLC

Conquest Training Systems, Inc.

FlipChip International

AQT Solar

Controlled Contamination Services

Fluidic Energy

Architectural Resource Team, Inc

Corporate Benefit Solutions LLC

GeoGRAFX GIS Services

Arizona Health-e Connection

Corum Group Ltd.

Geoternity Laboratories

Aztera, LLC

Creative Precision West

Gerome Mfg Co

Bancroft Information Services

CX, Inc.

Gilbane

BestIT.com

Cyberbullying Consulting LTD

gkkworks

Big Green Zero, LLC

DataWorks, LLC

Goodmans Interior Structures

Bizodo

Deltek

GottyCode

BMO Harris Bank

Digital Dimensions, Inc.

Hemisphere GPS

Board Developer

Directrix Computer Solutions, LLC

High Performance PV

Brookline Networks

DIRECTV

Horizon Moving Systems

BTEK Software, Inc.

DIRTT Environmental Solutions

HP

BTI Communications Group

DMD Systems Recovery Inc.

ICM Document Solutions

Business 2 Government Solutions, LLC

Dyme Group

IES Commercial, Inc

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NEW MEMBERS ImpaQ Solutions, LLC

Obsidian Strategics

Strategy1

inBusiness

O’Neil Printing

Stremor Corp

Infra-tect, LLC

OnX Enterprise Solutions

Strongwatch

Ingenious Demand, LLC

PerforMAC Inc Dba Arizona Data Centers

Sunrise Avionics, Inc (SAI)

Integrated Accounting Services, LLC

Pima County Information Technology Deptartment

Superior Technical Resources, Inc.

IOSAZ Job Brokers, Inc. Kelsey Thomas LLC Kotzin Valuation Partners Legato Technology Inc. Levion LocalRanker Arizona LLC LPL Financial Mayo Clinic McMurry (IT) Meru Networks MGRM Pinnacle Education Mobinnov MobiWeb MTG Consulting Group Nammo Talley Nationwide Recyclers Neeme Systems Solutions, Inc (NSS) Newhouse Studios NEX Computing Solutions

PlanetOne Communications PointeWare Powers Investments Premier Semiconductor Services

Sysazzle, Inc. Teikoku Taping System Inc The I.T. Workshop The Kelly Law Firm, L.L.C. The Luther Law Firm, PLC

Pyxl

The Small Business Authority powered by Newtek

Qualastat

The U of A - Eller College of Management

RealTime Consulting (RTC)

Traklight

Republic Services, Inc.

Travers Realty Corporation

Revenue Kinetics LLC

Tucson Professional & Personal Development Consultants

Rusing & Lopez, P.L.L.C. Saint-Gobain Solar Sanofi US Seal Innotech Shadow Mountain Computing Siemens SK Helsel & Associates SL-Tech Sonoran Schools

Turning Point Technology Solutions Vertech Virteva LLC VisionGate VLCM Voices Heard Media, Inc. Xponent Employer Solutions Yeager North Integrated Marketing Zemantix, LLC

Sparkline Group, LLC Statera StormSource Software

Become a member!

Visit www.aztechcouncil.org for more information.

THE aEROSPaCE & DEFENSE iSSuE

Invoy Technologies, LLC

Pivot Manufacturing

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Integrated Support Systems

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What’s next for fund after loss of MEP?

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The AEROSPACE & DEFENSE issue

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he state lost one of its proponents for technology and manufacturing in February when the Arizona Manufacturing Extension Partnership (MEP) filed for Chapter 7 bankruptcy.

It was an inevitable move for the group that sought to help small manufacturers find their way into big contracts, particularly in the aerospace and defense industries, and the semiconductor and other tech-dominated fields. The group lost an arbitration hearing against Time Wise Management Systems Inc., an Augusta, Maine-based group that had run Arizona MEP’s programs.

The odd thing was that Time Wise also ran the same program in Maine, and for a while the Arizona partnership was dominated by people from Maine. When those inside our state began trying to populate the board with more Arizona people, it led to issues.

At stake is about $1.8 million in program funding that went to Arizona MEP through a partnership with the National

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implement a statewide MEP program that leverages our programs and our partnerships across Arizona.”

Board members for Arizona MEP believe the ACA should get the contract, but NIST has to open it up to other companies throughout the U.S. This isn’t the first time Arizona has had an issue with a technology-related group with national connections getting a seemingly more diminished role in the state. A couple years ago, TechAmerica had a decent presence in the state and was known for pushing interests at the federal level for technology and techrelated manufacturers such as those in the semiconductor and aerospace industries.

A business realignment pushed them to a more regional model at a time when the Arizona Technology Council was talking with them about how to incorporate different programs into their offerings.

Sometimes Arizona suffers on the tech front because the players aren’t connected. Sometimes it suffers because of the perception that Arizona is really pretty and a nice place to visit, but there isn’t a lot going on here on the tech front.

Well, except for the $5 billion nextgeneration semiconductor fab Intel Corp. is building. Then there’s the presence of First Solar Inc., the largest solar manufacturer in the world. And there are companies such as Power-One Inc., an

Sometimes Arizona suffers on the tech front because the players aren’t connected.

Institute for Standards and Technology (NIST), an arm of the U.S. Department of Commerce. All states have some version of the partnership, which is designed to give small companies a chance in getting portions of big government contracts and in the process expand the manufacturing base around the U.S. Now the contract will go up for grabs and a safe landing spot for it should be the Arizona Commerce Authority, which is interested in keeping control of the programs inside the state.

“Supporting manufacturers in Arizona and the quality jobs they represent is central to the mission of the ACA,” said Kristen Hellmer, a spokeswoman for the group. “We are in close communication with NIST at the U.S. Department of Commerce, and we are anxious to compete for the opportunity to

inverter manufacturer in Phoenix, and all the other renewable companies that have come into the Valley. There’s the supporting cluster of more than 1,300 small manufacturing companies with 25 employees or less that Arizona MEP discovered were in the state and helping drive industries such as semiconductors and aerospace.

I could go on to the software industry, that no one seems to know about, but that’s a whole other column.

Fortunately, Arizona MEP’s functions will continue, and that’s a good thing for manufacturing. Let’s just see if they continue through someone in the state controlling it.

Patrick O’Grady is a reporter and blogger for the Phoenix Business Journal. His work can be seen in print and online at www.bizjournals.com/phoenix

Delivering Solutions For Our Clients

Congratulations to our clients on these select

Financing and M&A Transactions Tom Curzon (602) 640-9308 tcurzon@omlaw.com

SNTech, Inc.

Flypaper Studio, Inc.

Acquisition of pool and spa division of Regal Beloit Corporation and related financing

Unique Home Designs, Inc. Venture capital financing by an affiliate of Sid R. Bass Associates L.P.

EZ OWN Auto Source LLC

Investment in BroadHop, Inc.

Nutri-Vet, LLC

Acquisition of Flypaper Studio, Inc. by Trivantis Corporation

Acquisition of Nutri-Vet, LLC by Imperial Capital Group and its portfolio company, Petra Pet, Inc.

IO Data Centers, LLC

CAREfx Corporation Acquisition of CareFx Corporation by Harris Corporation (NYSE: HRS)

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Credit facility funded by Los Alamos National Bank

3/6/12

$130,000,000 senior revolving credit facility by Wells Fargo Bank, N.A. $70,000,000 secured capital equipment facility by Caterpillar Financial Services Corporation

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FireHost, Inc. Venture capital financing led by The Stephens Group, LLC

Bill Hardin (602) 640-9322 whardin@omlaw.com

Next Generation Insurance Group, LLC Equity financing by Sallie Mae, Inc. (NYSE: SLM)

FetchBack, Inc. Acquisition of FetchBack, Inc. by an affiliate of GSI Commerce, Inc. (Nasdaq: GSIC)

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Peninsula Ventures

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iMemories, Inc. Venture capital financing led by ORIX