Building Capacity and Capability in the Bio- Based Materials Manufacturing Sector
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Building Capacity and Capability in the Bio- based Materials Manufacturing Sector Prepared by: Prepared for: Economic Development Administration U.S. Department of Commerce Part of the Make it in America Challenge 30 September 2016 Table of Contents Acknowledgements ......................................................................................................................... iii About the Center for Automotive Research ................................................................................... iii Executive Summary ......................................................................................................................... 1 Introduction .................................................................................................................................... 4 Methods ...................................................................................................................................... 5 Bio-based Materials Basics ............................................................................................................. 6 Definition ..................................................................................................................................... 6 Common Materials ...................................................................................................................... 7 Vehicle Applications .................................................................................................................... 7 Material Properties ..................................................................................................................... 8 Material Cost ............................................................................................................................. 10 Standards ................................................................................................................................... 10 Labeling and Procurement Programs ........................................................................................ 11 Automotive Usage ........................................................................................................................ 13 History ....................................................................................................................................... 13 Commercialization .................................................................................................................... 14 Bio-based Materials Market ...................................................................................................... 17 Current Usage ............................................................................................................................ 18 Announced Usage/Goals ........................................................................................................... 19 Why Michigan? ............................................................................................................................. 22 Agriculture ................................................................................................................................. 22 Manufacturing ........................................................................................................................... 22 Research and Development ...................................................................................................... 23 Market Factors for Bio-based Materials ....................................................................................... 24 Drivers and Benefits .................................................................................................................. 24 Gaps and Challenges ................................................................................................................. 28 Opportunities and Best Practices ................................................................................................. 33 Government .............................................................................................................................. 33 © Center for Automotive Research i Private Sector ............................................................................................................................ 35 Roadmap for Bio-based Material Development ........................................................................... 39 Company ................................................................................................................................... 39 State .......................................................................................................................................... 39 Federal ....................................................................................................................................... 39 Conclusions ................................................................................................................................... 41 Petrochemical Prices ................................................................................................................. 41 Regulations ................................................................................................................................ 41 Consumer Demand .................................................................................................................... 42 References .................................................................................................................................... 44 Appendix A: National Center for Manufacturing Sciences Project Summary .............................. 52 Appendix B: Michigan Manufacturing Technology Center Project Summary .............................. 55 Appendix C: Macomb Community College Project Summary ...................................................... 58 Appendix D: List of Organizations Interviewed ............................................................................ 61 Appendix E: Bio-based Materials Questionnaire .......................................................................... 63 Appendix F: Bio-based Materials in Production and Concept Vehicles........................................ 64 Center for Automotive Research © 2016 ii Acknowledgements This report is the result of a cooperative group effort involving colleagues at the Center for Automotive Research (CAR) and others outside the organization. At CAR, the authors would like to thank Kristin Dziczek for providing thorough content guidance and editing review, as well as Dr. Jay Baron and Greg Schroeder for providing their advice and sharing their expertise in automotive materials. The authors also thank Dave Andrea for his valuable editing suggestions, and Diana Douglass for her detailed contract management and administrative support. The authors also would like to thank representatives at our partner organizations: National Center for Manufacturing Sciences, Michigan Manufacturing Technology Center, Macomb/St. Clair Workforce Development Board and Macomb Community College. Their collaboration and experiences over the course of this project enriched the information included here. Additionally, the authors thank the numerous interviewees who contributed their time and knowledge to discuss their and their companies’ experiences with bio-based materials. This information provided a first-hand account to inform the drivers, challenges, and opportunities of bio-based materials. Finally, the authors wish to thank the U.S. Department of Commerce’s Economic Development Administration for providing the support and funding to make this project possible, as well as the funding agencies of our partner organizations, the U.S. Department of Labor’s Economic and Training Assistance, and the National Institute of Standards and Technology. Valerie Sathe Brugeman, MPP Senior Project Manager, Industry, Labor and Economic Group Joshua Cregger, MS Project Manager, Industry, Labor and Economic Group About the Center for Automotive Research CAR is a leader in researching the significant issues that affect the global automotive industry’s future. CAR, a nonprofit organization, is focused on a wide variety of important trends and changes related to the automobile industry and society at the international, federal, state and local levels. CAR's automotive industry research is performed by distinct groups and programs. To fulfill its mission as an impartial voice of the industry, CAR maintains strong relationships with industry, government agencies, universities, research institutes, labor organizations, media, and other major participants in the international automotive community. www.cargroup.org Center for Automotive Research © 2016 iii Executive Summary Michigan is both a hub for automotive research and development activity as well as agricultural production: automakers and suppliers conduct over 75 percent of all privately-funded U.S. automotive R&D in Michigan annually, and the state ranks second nationally in bio-diversity of its agricultural products.1 Manufacturing and agriculture come together through innovation in developing and manufacturing plant-based advanced materials for automotive uses—activities that have a long history in Michigan that goes back to the earliest days of the automotive industry. The Center for Automotive Research (CAR), with support from the U.S. Department of Commerce’s Economic Development Administration, produced this research to explore pathways toward building capacity and capability