New Center Will Make Colorado a Leader in 3D Metal Additive Manufacturing Research

By TOM BUGNITZ
CEO
MANUFACTURER'S EDGE

When the right project meets the right people with the right motivations, great things can happen.  Personal agendas disappear, trust is built, resources mesh, and a common vision emerges that can benefit not just those involved, but the larger community too.  When this happens, it can be a model for how things can be done to move an entire state forward.

Such has been the case over the last two years, culminating as I sat in a conference room and watched the state’s Economic Development Commission allocate $2.5M to position Colorado as the premier center for advanced metal additive manufacturing.  OEDIT’s Advanced Industry Infrastructure Grant Program was the source of the funding, and this was by far the largest grant ever awarded through this program.

The “right project” will build a practical research center in Colorado that will provide testing, performance analysis, and materials knowledge about 3D metal printed parts, especially as those parts apply to aerospace and advanced manufacturing.  This is an area that is critical to pushing America forward in advanced manufacturing, and Colorado will be in the lead.  This project will produce tangible, useable results starting within the next few months, and with the infrastructure built by this grant well into the next decade.  In fact, work has already started in determining what and how to manufacture test parts, and the first analysis will begin shortly.

The “right people” were a team pulled together by Heidi Hostetter and Alicia Svaldi, the energy and brains behind Faustson Tool, one of the leading aerospace precision machine shops in the world.  Heidi, a force of nature on her own, convened a diverse group of organizations and people that included Faustson, with knowledge of precision machining and 3D metal additive manufacturing; the Colorado School of Mines and two of its star professors in materials and metallurgical science;  Lockheed Martin, represented by a distinguished materials engineer and former NASA researcher;  Ball Aerospace, contributing expertise in materials research and aerospace engineering;  and Manufacturer's Edge, the Colorado Manufacturing Extension Partner, bringing connections to NIST and the large community of small manufacturers who will also benefit from the research.  Lockheed Martin, Faustson, Colorado School of Mines, and Ball Aerospace stepped up not only with people and expertise, but money:  those four organizations matched the $2.5M with over $5M of their own money to get this center off of the ground.  To paraphrase the old joke, that isn’t contribution, that’s commitment.

The “right motivations” were simple and shared by everyone on the team:  make Colorado the leader for knowledge and expertise in how to make the best 3D metal additive parts in the world,  especially in the aerospace industry.  At every step of the process, as the project was being formed, everyone kept one goal in mind:  make Colorado companies, academia, and people the best there is in this field, and let the world know that Colorado is the place to come to be on the leading edge of this research and commercial application.

We believe that this is how things should work in pushing Colorado forward into advanced manufacturing.  Partners that include public and private companies, service organizations that support manufacturing, a major research university, and OEDIT, the economic development arm of the State of Colorado, all working together and contributing expertise, people, and money can build an asset that will bring benefits for years to come.  A multi-faceted team producing tangible results immediately and for the long-term, that help one of our key industries as well as manufacturing in general, can prove to the community that these partnerships can work, can produce results, and are wise and necessary investments.

I personally thank the entire team that pulled this proposal together, the Economic Development Commissioners, and Fiona Arnold, Executive Director of OEDIT and her entire AI team for their support, assistance, and willingness to invest in such an important project.  We are committed to making this a model for such partnerships, and we look forward to doing great things for this State and its manufacturers.

TOM BUGNITZ
CEO
MANUFACTURER'S EDGE
303.998.0303
[email protected]
www.manufacturersedge.com

 

Homeownership Among Denver Millennials

By Stephen Stribling

As a parent of two adult children I am no stranger to Millennials, the largest age group in the U.S. with an estimated 83.1 million individuals. Representing more than one quarter of the nation’s population, Millennials are already having a dramatic impact on social, political and economic trends.  

In Denver, we are seeing a trend of Millennials increasingly delaying the purchase of a home. The city is currently experiencing one of the highest year-over-year gains in home values at 10.2 percent. However, the current Millennial professional does not earn enough to purchase a home in the metro Denver area. The city was also ranked No. 12 in Bloomberg's “The 13 Cities Where Millennials Can't Afford a Home.” There are four reasons why this is true in today’s market: the Great Recession of 2008-2009, stiff competition for jobs, student loan debt and a changing set of priorities. 

In the U.S., buying a home was long considered a milestone that symbolized financial success and a transition into adulthood. But as Millennials watched the value of their parents’ home drop drastically during the 2008-2009 housing bubble, many have grown wary of homeownership. For years, they were brought up to believe that housing prices never decreased. But in the span of just one year, they experienced firsthand housing values falling through the floor. As a result, many are putting homeownership on hold – even questioning it altogether. 

In particular, Denver Millennials are experiencing a unique dilemma. Now may be a great time to purchase a home when compared to the high cost of renting. However, the city’s desirability is also causing an influx of Millennials to relocate here, creating more competition for high-paying jobs. 

Another contributing factor is the hefty burden of student loan debt, which often can impede the requisite debt-to-income ratios required by many mortgage lenders. National student loan debt now tops $1 trillion

For the few Millennial professionals who can afford to make a down payment and are not carrying student debt, buying a home could be the right fit. One way to alleviate costs is to have roommates that can help contribute to the mortgage – an option that some of our Millennial clients consider. However, if student loans are still a concern, I would suggest paying down some of that debt first. 

While it is evident that external factors such as the housing plunge and increased competition for higher-paying jobs has off put homeownership among Millennials, the lack of interest may also stem from internal sources such as their evolving set of priorities. It was evident from a discussion with my children and their friends that traveling, purchasing the latest tech gadgets and saving for retirement are placed as much higher priorities than purchasing a home.

With today’s market, it’s understandable why Millennials are hesitant toward purchasing a home. However, trends are constantly evolving and what it is now, may not be what it is tomorrow. It will be interesting to see how the factors contributing to Denver Millennials’ ability to afford a home will evolve – for better or for worse – and how it will ultimately affect their attitudes toward homeownership in the future.

Stephen Stribling is a Financial Advisor with the Pelican Bay Group, Global Wealth Management Division of Morgan Stanley in Denver. He can be reached at 303-572-4889 or [email protected]

The information contained in this article is not a solicitation to purchase or sell investments. Any information presented is general in nature and not intended to provide individually tailored investment advice. The strategies and/or investments referenced may not be suitable for all investors as the appropriateness of a particular investment or strategy will depend on an investor's individual circumstances and objectives.  Investing involves risks and there is always the potential of losing money when you invest. Morgan Stanley and its Financial Advisors do not provide tax or legal advice. Individuals should seek advice based on their particular circumstances from an independent tax advisor. Information contained herein has been obtained from sources considered to be reliable, but we do not guarantee their accuracy or completeness. The views expressed herein are those of the author and may not necessarily reflect the views of Morgan Stanley Wealth Management, or its affiliates. Morgan Stanley Smith Barney LLC. Member SIPC.

Business and the Broncos Share Success Lessons

On Sunday, November 29, 2015, many of us were watching The Game. This particular NFL game was the Denver Broncos vs. the New England Patriots playing at Denver’s Sports Authority Field at Mile High, but if you’re anywhere in the region, you could just call it The Game and we’d know what you mean. Over 75,000 fans attended in person despite snow and temperatures in the teens. You just can’t keep Broncos fans down, and by the end of the night, you couldn’t keep the Broncos down either. 

As expected, The Game was the main topic of discussion the next day at work. Well, the main topic besides actual work. Yet, the two blend so easily – a discussion about the challenges and successes of an underdog win applies to business as well as it does to professional football. Some of our colleagues weighed-in about how the Broncos win reminds them of business wins.

Choose the Right People with the Right Passions
Since John Elway took over as the Broncos’ team president in 2011, the Broncos have been an extremely well-run organization as evidenced by a string of four consecutive AFC West division titles (soon to be five), three playoff wins and one Super Bowl appearance. And, while the fans see the victories on Sundays, they don’t always appreciate the business principles that Elway and the Broncos bring to the organization. The business principle that has really improved the team is the leader’s ability to pick the right people for his organization. 
 
With Elway at the helm, the Broncos have emphasized finding the right types of players to fit their organization. These players had to have an extremely strong work ethic who loved playing football. For example, in 2012, they made the bold decision to bring in hall of fame quarterback Peyton Manning as a free agent and draft Brock Osweiler as its quarterback of the future. Both players have a strong love for football (Manning’s work ethic and study habits are legendary, and Osweiler chose football as his sport despite getting scholarship offers to play basketball at Gonzaga).  Both moves have paid off handsomely, with Manning leading the Broncos to three straight division titles, earning one MVP award and one Super Bowl appearance, and Osweiler looking like the Broncos’ quarterback of the future and potentially the present. This is just one example, as the Broncos have strong leadership, work ethic and depth throughout its roster.

Brian Tibbets, International Operations Manager, CAP Worldwide

Keep Pushing Even When You’re Down
Watching a nail-biter of a game like the Broncos vs. Patriots really highlights some of the keys to success, both on the field and while running a business. Perseverance and having a reliable team are just a couple I can think of. Down by 14 against an undefeated championship team, in the cold and snow, and without our star player, the Broncos never gave up and kept playing their hearts out. Also, even without Peyton, they put their faith in Brock Osweiler and our defense, stuck with the coaches’ game plan and pulled off an amazing victory. Much like running a business, you need to keep pushing, even when you're down, and surround yourself with a reliable staff that will work together to accomplish your business goals.

Alex Villareal, IT Specialist, NUSS Professional Services Group

Combine Forces for Fluid and Crystallized Execution
Overtime at Mile High -- it’s 3rd and 1 on the Patriots’ 48 yard line, and the young Brock Osweiler steps up under center amid a snow globe of flurries. The breakout QB has stepped up to fill some of the biggest shoes in NFL, those of Peyton Manning, and has somehow managed to keep his team neck and neck with Tom Brady’s undefeated Patriots. Osweiler is not alone, however, as head coach Gary Kubiak looks on from the sideline. 

In the past weeks, Kubiak and Osweiler have been solidifying a tight execution of the Broncos new offensive strategy in Manning’s absence, working on how to read defenses and audible accordingly. Seconds before the game’s defining play begins, Osweiler reads the defense and opts for an audible. The head coach knows exactly what Osweiler is thinking and manages to flag down a ref for a time-out just before the snap.

While Osweiler was executing the offense exactly as planned with a vigor only a young buck could, Kubiak knew something he didn’t. The two convened on the sideline. After a quick chat and a pat on the back, Osweiler headed back to midfield, set his team, snapped the ball, and sliced through the Patriots’ defense with a handoff to running back Anderson for the game-winning touchdown run.

In psychology, Raymond Cattell coined two types of intelligence -- fluid and crystallized. Fluid intelligence is the capacity to think logically and solve problems in novel situations, independent of acquired knowledge. Crystallized intelligence is the ability to use skills, knowledge, and experience. It relies on accessing information from long-term memory.

In order to win big games and solve complex problems, your brain needs both. Watching Osweiler is an embodiment of fluid intelligence, relying on reflex, athleticism, and improvisation. But Kubiak has been in the NFL for decades, even filling the shoes as the Denver Broncos QB from 1981-1983.  He has years of memories and experience to draw from -- crystallized intelligence. 

With respect to business, we can glean a few principles from this sensational game. You can’t win with only years of experience, and you can’t win with just sheer talent. You need a combination of the two.  That means depending on the young and old for their respective strengths and working together to reach a common goal, because if you want to win the Super Bowl, you’ve got to win it together. 

Tim Bungum, Creative Director, ICOSA Media

Don't Underestimate the Power of Discomfort
In business you must be able to weather the storm in bad situations: changing economies, different ideologies, etc., but it is through this perseverance where true victories are won. The Broncos were down 21-7 , with little success happening in the snowy conditions, and the Patriots were looking like they would remained undefeated. However, the Broncos showed their toughness and determination to never give up, and through their fight were able to win in overtime.

Adam Wallace, Account Executive, CAP Logistics

Bad Calls Are Part of the Game
“I don’t know, I didn’t watch the end.” This is how a colleague replied when asked about how he felt about the game. More than a few people turned off the game when the Broncos were losing and a comeback seemed unlikely. And that’s understandable – Sunday night after a long, holiday weekend, we all had things to do. But those who made the call to turn off the game might have regretted it once they heard about the big win. Bad calls are part of the game. The aforementioned colleague could have said, “Oh, the end of the game was amazing!” but he was honest that he didn’t watch it. We must admit when we make a questionable call, learn from it, and move forward. 

These are a few conversations around our shared office space. What are your thoughts on how this big game reminded you of business success? Share your comments below!