INDIANAPOLIS MARKET ASSESSMENT SUMMARY

INDIANAPOLIS MARKET ASSESSMENT SUMMARY “TechShop is an open-access hub for creativity bringing together the hardware, software and the people anyone...
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INDIANAPOLIS

MARKET ASSESSMENT SUMMARY

“TechShop is an open-access hub for creativity bringing together the hardware, software and the people anyone might need to turn an idea, an invention into reality.” Jim Newton, TechShop founder

INDIANAPOLIS In 2015, the City of Indianapolis and the Indy Chamber commissioned a market assessment with TechShop to test the feasibility of opening an open-access makers space in the Indianapolis market. This document serves to present a summary of the findings of that market assessment

BUSINESS MODEL

TechShop’s mission is to drive global innovation and support social entrepreneurship through its facilities. TechShop management have continually refined the business model based on their experience with existing facilities and as a result have developed a profitable and scalable model According to Atmel, a major backer of the Maker movement, that they know works. A key there are approximately 135 element of their success is that million U.S. adults who are makers, TechShop secures institutional and the overall market for 3D FOUNDED: 2006 by Jim Newton and corporate partnerships printing products and various prior to opening a new facility. maker services hit $2.2 billion in LOCATIONS: 8 existing, 39 planned This enables new facilities to 2012. That number is expected to meet the needs of their partners reach $6 billion by 2017 and $8.41 HOURS OF OPERATION: 24/7 from the start (both in terms of billion by 2020. According to location and physical machinery) USA Today, makers fuel business EQUIPMENT: Lathes, laser cutters, welding equip- and secures an active user with some $29 billion poured ment, 3D printers, long-arm quilters, and more base from day one. Specifically, into the world economy each Techshop: year.

TECHSHOP FAST FACTS

AVERAGE SIZE: 17,000-20,000 square feet

• Drives down the cost of In Indy’s current ecosystem, life AVERAGE EMPLOYMENT: 20 Full Time, 30 Part innovation for companies and science innovation is flourishing Time individuals, enabling them to through the investment of 16Tech; tackle global problems cost a makers movement is happening PROGRAMMING effectively with reutilized manufacturing Textile, 3D Labs, Laser Cutting, Robotics and • Invigorates the design and facilities; artisan brewing, Microelectronics Lab, Woodshops, Metal Shops, manufacturing base Plastic Fabrication, Jewelry Making, Bicycle Repair, • Inspires youth and distilling, and food production is Automotive Bays making the nation take notice; encourages young people to and tech is drawing VC from the engage in science, engineering CURRICULUM coasts, elevating our image, and and innovation, and replaces Over 100 classes per month featuring advanced the experience lost when trade producing industry-changing operations, business courses, and more shops became defunct applications. These movements have a common thread: design innovation leveraging Indy’s history in manufacturing with MEMBERSHIP DEMOGRAPHICS tomorrow’s technology. Supporting an open-access makers space in Indianapolis goes beyond just makers. The momentum born from tapping into the creative outlets of the city’s workforce impacts businesses large and small, creates a sense of hometown pride, and is at the core of innovation in its simplest form.

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TechShop attracts members who are interested in co-making and prototyping fabrication. Most TechShop locations have over 1,000 members; based on this market assessment conducted, TechShop Indianapolis is projected to have a membership base of just over 1,000 memberships with 650 of those being corporate and sponsored memberships at year one.

MARKET ASSESSMENT SUMMARY Gender Profile In TechShop San Francisco, the split of male to female members is 60% male and 40% female. For a technology- focused innovation space these figures are refreshingly balanced.





TechShop allows other maker spaces’ members to take TechShop classes at the same discounted rate as TechShop members TechShop is currently developing a suite of integrated services designed to make its curriculum and basic certification accessible to members of other maker spaces

TRAINING AND SAFETY OVERVIEW Age Profile The age profile of users is extremely diverse with members varying from ambitious entrepreneurs right out of college to retirees wanting to stay physically and intellectually active. TechShop is replacing the backyard or basement tinkering shed in favor of a social, shared space that allows for experience exchange that can push ideas towards innovation. We are expanding our STEAM curriculum and partnerships at local levels with the intent of growing the under-20 appeal. The typical age split is outlined below, although this varies by location.

EXISTING AND PLANNED MAKER SPACES TechShop fully supports the development of new and existing maker spaces in Indianapolis as the demand and interest of makers is far reaching. Examples of how TechShop supports other maker spaces through: • TechShop offers week-long intensive camps where we train emerging maker spaces how to design,build, staff, equip and operate small maker spaces within schools, libraries and other community spaces. • We host community meet-ups and events where we encourage other maker spaces to participate in programming at no charge, and we offer our space to maker spaces to hold their own meet-ups and workshops for their members

Classes TechShop offers a variety of classes and workshops in woodworking, laser cutting and etching, 3D printing and editing, CAD/CAM software and much more. Classes are divided into three categories: • Safety and Basic Use (beginner) • Pathway Classes (intermediate) • Project Classes (advanced) Most TechShop locations offer over 150 classes per month and, with just 3-4 people per class, close instruction and oneon-one guidance is guaranteed.

Safety There is a zero tolerance policy which ensures that safety is always a priority in TechShop facilities. There are also restrictions on the tools that minors (under age 17) can use independently. Over the last eight years of operation, there has not been a single insurable event. As over 200 people can be present in the facility at any one time, this is quite an impressive safety history. This track record speaks to the facility’s ability to recognize which machinery requires specific training and the appropriate ratio of “on the floor” support staff. Regardless of their prior knowledge, all members must complete Safety and Basic Use classes taught by trained professional instructors

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INDIANAPOLIS using TechShop’s proprietary curriculum before they are allowed on relevant machines. All machinery is equipped with badge scanners that will not let a machine run unless the member possesses the appropriate safety credentials.

world-class STEAM (Science, Technology, Engineering, Art, and Mathematics) and robotics center where middle and high schoolers can apply their classroom knowledge with hands-on workshops.

Services Members can take advantage of the following services: • Personal Training: Attend a oneon-one Safety and Basic Use or other class taught by a knowledgeable TechShop instructor. Up to three additional attendees may join you. • Personal Consulting: One-on-one advice by a TechShop instructor on how to tackle a project. No equipment is generally involved. • Personal Prototyping: Work alongside a Dream Consultant or instructor to produce necessary parts. Ideal for people who have already engineered a piece but require a specialized build.

BENEFITS OF A TECHSHOP Economic 1. “Instant destination” 2. Attracts valuable creative class 3. Enhances area value 4. Supports economic innovation and training 5. Creates jobs 6. Generates users for mixed amenities

Placemaking 1. Media attention 2. Additional foot traffic and vitality 3. Round-the-clock activity and natural surveillance 4. Attractive street level engagement 5. Skills, classes and apprenticeship training 6. Supports partnerships

INDIANAPOLIS FEATURED PROGRAMMING: STEAM and Robotics A standout theme throughout the market assessment interviews was the universal expression of support for developing a comprehensive, engaging, and safe hands-on

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Such a space should include the following: • A safe, engaging, well equipped workshop capable of supporting individual, small-team and group activities simultaneously • Safety and basic use curriculum and certification standard • Staffed education function to develop new curriculum as programming needs and equipment evolve A cadre of carefully trained professionals with experience teaching maker skills and workshop safety classes

Specifically, Indianapolis lacks a permanent, well equipped home for its various competitive robotics leagues such as FIRST and Vex Robotics. In addition to the above requirements, such a space would require the following: • A regulation-sized competitive arena for both practice and hosted competitions • Separate pit areas where individual teams can work on their entries • Commonly used robotics hand and power tools with workbenches, power and the like • Robotics storage cages where teams can safely secure their robots and equipment The TechShop development team believes Indianapolis presents a unique opportunity to design and develop a truly world class STEAM and Robotics center with TechPoint Foundation co-located with and supported by TechShop Indy. Although the space requirements are more expansive than a typical TechShop, the design, construction, equipment and operation of the space are entirely consistent with TechShop’s mission and expertise.

MARKET ASSESSMENT SUMMARY Hardware Innovation and Prototyping Although Indianapolis has several co-working spaces and incubators, none of these solutions offers a well-equipped open access hardware design, prototyping and manufacturing capability. We believe TechShop Indy can serve a significant untapped demand for small team hardware innovation studios that combine the amenities of a collaborative office space with those of a fabrication studio: • Private 350- to 500-square-foot hardware innovation studios • Packaged with TechShop memberships and training • Clear site lines into a world class community workshop • Access to a community of creative with richly diverse backgrounds, skills, visions and aspirations • Private workbenches, desks and storage • White boards and teleconferencing space • Fully staffed support team • Round-the-clock access security • Access to catering kitchen, break and conference rooms While this focus was originally conceived for startups, strong interest from universities and corporations who viewed these suites as perfect seminar or remote “hotel” spaces for team members working on fabrication projects show the diversity of users.

LOCATION OF CHOICE: 16TECH 16 Tech is an under developed industrial area that is well located on the edge of downtown north of the IUPUI campus. The Central Indiana Corporate Partnership is leading the transformation of this area into a large mixed-use innovation district designed to attract high-tech businesses as well as life and health sciences research and development. It will serve as the home of the Indiana Biosciences Research Institute in addition to serving startup businesses. At the core of the proposed 16 Tech campus is the old Citizen Energy Group’s Fleet Maintenance Building. The CEG Maintenance Garage is a free span 40,000± square foot industrial building which offers excellent space for a core 20,000 square foot TechShop as well as the adjoining STEAM/Robotics Center on one side and at least 10 Hardware Innovation suites on the opposite side of the core TechShop. 16 Tech is currently removed from other centers of activity that offer stores and restaurants relevant to TechShop. However, there are plans to develop it into an attractive area for creatives, millennials, and the clustering of assets of innovation, entrepreneurship and workforce development.

While 16 Tech is being fully built out over the next 15 to 20 years, TechShop would serve as a lead anchor tenant and catalyst for development providing a long-term amenity drawing other complementary tenants.

PARTNERSHIPS:

During the market assessment phase TechShop seeks to identify potential corporate and institutional partners who find measurable value in having an open access makerspace available to their organization and the community at large. Our location development strategy seeks to build a federation of institutional partners who share a common vision and commitment to developing an “innovation cluster” of synergistic innovation programs with the following interlinked goals: • Empowering the communities’ entrepreneurs with rapid prototyping and advanced fabrication facilities, machinery, education, networking and mentoring • Fueling the birth of new companies and jobs within the region • Providing students access to world class hands-on STEAM programs and robotics facilities that will enable them to compete at a national level • Delivering advanced manufacturing skills and experience to the region’s workforce • Enabling local corporations a way to collaborate with, support and benefit from the local maker community • Providing universities with state-of-the-art open access maker space for students, faculty and alumni

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INDIANAPOLIS A federation of committed partners helps to develop a sustainable TechShop in the following ways: • Low interest long term loans or Series B investment that help cover startup costs • Free or significantly reduced rent • Partial or full tenant improvements • Bulk membership/ training commitments on behalf of employees, students, veterans and other deserving community groups • Identify/attract other partners and funding sources TechShop is confident that over the next several months a number of partners will be brought into the federation, but at this point the highest potential partners identified would seem to be: Civic and Developers • City of Indianapolis • Indy Chamber • 16 Tech and Wexford

STRENGTHS •

• Shared Vision: We’ve yet to assess another market where the major stakeholders—from the mayor’s office to the universities, from makers to corporate stakeholders— embrace a common vision around innovation placemaking as well as the commitment to do it right in Indianapolis • Strong Demand: Individual makers, foundations, schools, universities and corporations expressed clear, thoughtful ideas for how they would like to leverage a world-class community maker space • Relationships: Virtually every Indianapolis stakeholder we met knew each other, which should help to quickly coalesce programming requirements and a well-coordinated sponsorship strategy. •

Unique Industry Mix: Indianapolis presents a unique heritage of manufacturing, agriculture,innovation, the sciences, tech and the arts—the rich diversity of interests, expertise and aspiration that fuel the magic behind the most successful TechShops



Philanthropic Bent: We were impressed with the disposition of major Indianapolis corporations



Civic Commitment: The commitment to leverage the opportunity and move beyond conversation to get the job done right and done quickly was evident throughout the market assessment.

Foundations and Non-profits • TechPoint Foundation for Youth • The Software Academy Academic • IUPUI • Purdue Polytechnic Institute Corporate • Rolls-Royce • Raytheon • Cummins • Eli Lilly and Company

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Not only is a TechShop Indy feasible, we believe the conditions are right to make it the North American showcase for community maker spaces. TechShop Indy will be where cities and universities travel to see what an open access is and how it’s done

MARKET ASSESSMENT SUMMARY CHALLENGES

Of course, creating a world class maker space in Indianapolis—and doing so quickly—requires us to work through challenges as well. Namely, the following: •

Development Pace: As well with 16 Tech, accelerating the negotiating of terms and funding of tenant improvements will likely require involvement from The City of Indianapolis



Funding: The concept of a large, multi-purpose community-centered maker space that can support a core TechShop plus an adjoining robotics/STEAM center and the software coding academy will drive overall project CapEx at least 25% higher than a typical TechShop. The concept of co-locating these other programs with TechShop has significant operational advantages to the community, but it will require additional sources of capital funding

PRELIMINARY DESIGN, PROGRAMMING AREAS: INDIANAPOLIS TECHSHOP

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TECHSHOP MARKET ASSESSMENT COMMISSIONED BY:

OCTOBER 2015