The economic future of the U.S. was the topic on everyone’s minds at the three-day National Summit in Detroit. FOX Business Network Anchor Alexis Glick talked with some of the attendees. Here’s what happened on Day One.
Detroit, Mich. Hosts First National Summit
Beth Chappell, president and CEO of the Detroit Economic Club, noted that the discussion topics included everything from technology and energy to environmental manufacturing.
Wayne County, Mich., executive Robert Ficano said Michigan has been facing economic troubles for more than six years.
“Detroit's been downsizing, and the auto industry has been the primary challenge, but we are resilient people, we have great engineers and we have a lot of people that will be able to come back, and I really believe in the area,” he said.
Bob Paul, president and COO of Compuware Corp. (CPWR), believes technology is the bigger part of the industry.
“First off, you have to have something different to bring into the marketplace,” Paul said. “I believe you can run from capitalism, but you can’t hide. At the end of the day, if businesses are doing well, the jobs are going to grow. If we can continue to deliver thought-leadership into technology, it will create a buzz and an ecosystem around Detroit much as it did in the auto industry many decades ago.”
George Jackson, president and CEO of Detroit Economic Growth Corporation, said the group is doing more than throwing money at the problem -- that training people for development, as well as entrepreneurship, is part of the equation to turn around the economy.
In order to bring back Detroit, Paul said fixing the auto industry is the primary goal, which includes bringing in new innovative ideas in order to compete. Also, there is a great source of life sciences, with the best health care capabilities, and lastly, there are unique incentives for the film industry as well as information technology.
“On hope for the people of Detroit --You have to give them a plan that they believe in,” Ficano said. “You have to create leadership that can lay out a long-term strategy that can give them a sense for state and local government and for the companies operating here.”
ArvinMeritor Inc. Less Affected By Economy
Chip McClure, CEO of ArvinMeritor Inc., a manufacturing company, said his business has not felt the economic downfall as much as most would expect.
ArvinMeritor diversification into heavy trucks and specialty vehicles, along with automotives, has likely given it a better chance to survive in this economy.
McClure said people should still get into the manufacturing side of things, because there is exciting technology and innovation leading toward new growth.
“I think one of the things we have an obligation to do, both in the private and public sectors, is to make the U.S. a good place, not only for U.S.-based companies, but foreign companies to manufacture here so it's really creating an environment for people to invest in,” McClure said.
Codexis Inc. Promotes Biofuels
Codexis Inc., a clean-technology company that develops industrial biocatalysts, has recently moved into biofuels like biogasoline and biodiesel, according to CEO Alan Shaw.
“We develop and manufacture super enzymes. These super enzymes can affect cleaner, cheaper and faster processes, which can be deployed across a broader rear of multibillion-dollar industries,” Shaw said.
NALCO Helps the Environment
NALCO (NLC) works to reduce environmental footprints -- and according to CEO Erik Fyrwald, China is one of the company’s largest investments because it seeks environmental change.
“If China can get on the right track for the environment, then that will have a huge impact for the globe and pull along the rest of Asia,” Fyrwald said. “But China getting on the track is a big opportunity for China, the world and for Nalco.”
“The government has to recognize that a strong industrial, environmental and energy policy can enhance the ability of U.S.-based companies to drive the technologies that are really going to meet the world's needs in these areas,” he said.
PatientLikeMe Brings Together People With Similar Health Issues
PatientsLikeMe builds free online communities for patients with life-changing illnesses, and has around 13,000 patients from the Multiple Sclerosis community sharing information on the site. Altogether, the Web site has more than 36,000 patient members across its communities.
“What's different about what we do is we help them share structured health information like outcomes, treatments and symptoms all over time in a way that helps them learn from others like them and ultimately what happens to a patient like them,” said Ben Heywood, CEO of PatientsLikeMe.
The company takes the information it learns from its patients and sells the data to pharmaceutical and medical companies to help them develop better products.
Ford Motor Co. Hopes to Take the Lead in Fuel Economy
Bill Ford Jr., Ford’s (F) executive chairman, says he never imagined he’d see two major competitors in bankruptcy with government ownership.
“I think it's important we have transparency, especially at the decision-making level, with GM as in regards to the government,” Ford says. “I really like where we are. I love the fact that we are independent, that we can make quick decisions, that our executives are not distracted by extraneous things and we have a plan and we are sticking with it.”
Ford said there are competitive issues, but because the company has independence, it has a better advantage.
“I certainly wouldn't trade places with anybody else,” he said.
Ford thinks the company has sufficient funds to get through all of this, and he believes the company can survive without a bailout.
“We want to be the fuel economy leader is everything we participate in… And I do think an energy policy is something this country needs,” he added.
Humana Inc. on Government Plans for Health Care
CEO Michael McCallister of health insurer Humana Inc. (HUM) said he agrees with various things President Obama’s Administration wants to fix, including the need to rising costs and technology issues.
“Costs are rising for lots of reasons,” he said. “We have a non-system. It doesn't have any of the attributes of a system, with money spent in unproductive inefficient ways. It’s about getting at the underlining drivers of costs.”
McCallister believes the U.S. has to work on general wellness, and the underlying health of people, otherwise nothing done in the market is going to make any real difference.
“There are no quick fixes to this,” he said. “It will take a lot of different approaches.”
Humana doesn’t agree with all Obama’s policies and plans, and McCallister think it's important to not disrupt what’s actually working today, because 85% of people that have employer-based health insurance are relatively satisfied with it. However, McCallister told FBN we do have to step up with health care reform this year.
“I want the government to do what they always do best, and that is to set the rules and help the market be successful, but let the market flourish,” McCallister said.
General Motors Seeks Better Future
General Motors (GM) Vice President Tom Stephens thinks the most crucial aspect to selling cars on the lot today goes beyond the quality, reliability and durability. Customers are most interested in the technologies on board for leadership, fuel economy and safety.
“General Motors has an advanced propulsion technology strategy. In that strategy we are trying to reduce the emissions to zero, increase fuel economy significantly and reduce our dependence on petroleum,” Stephens said.
GM is working on conventional power trains and technologies, allowing these products to run on alternative sources of energy.
“We have got the electrification of the automobile,” he said. “What we are trying to do is bring out hybrids, plug-in hybrids, extended-range electric vehicles like the Volt, all the way up to fuel cells. We have a very robust portfolio moving forward.”
GM is a full line manufacturer, hoping to provide customers with a choice to buy whatever vehicle they like to buy and make sure their products have the highest fuel economy in every segment they compete.
“General Motors is going to come out of this a very customer focused, lean, agile, profitable company,” Stephens said.
