Yeruham - From Traditional Industry to Aerospace Leadership

Tzeirim Beyeruham

Ness Returning Application 2023 Application

Yeruham - From Traditional Industry to Aerospace Leadership

Tzeirim Beyeruham Lior Bar Eliyahu Hanavi Street 303 PO Box 564 Yerucham Yeruham, ISRAEL 8050000

[email protected] O: 08-6535185 B 0543455111

Director of Strategic Planning Division at Yeruham Local Council Adi Rozenberg Alyao Anavi 303 post office box 564, Yeruham, Israel 8050000

[email protected] B 9728698247 B 0528109725

Project Details Project Name*

Name of Project Yeruham - From Traditional Industry to Aerospace Leadership

Funding History*

Please list the past years, names of projects, and funding amounts that the Ness Fund has provided for this project. For the 2022-2023 period, a request was submitted for support in the amount of $336,000 (1M NIS). Support was approved in the amount of $100,000 for this period. So far $30,000 has been transferred.

Project Description*

Summarize the primary focus of your original grant project and your successes to date. • Needs/problems and solutions associated with the project. • Major achievements/outcomes to date. • Challenges and how you are overcoming them. • Key partners such as municipal/regional council leaders, universities, other organizations,

government, etc. Indicate what you ascribe your successes to: o an individual(s) and/or o partner organization(s) as collaborations o specific activities. The Strategic Plan - creating an advanced technological: 1. Attracting government investments. 2. Establishing a town employment center comprising a "one-stop-shop" for residents to obtain technological training and employment on the one hand, and for employers to source, screen and recruit employees while lowering the bureaucratic barriers. 3. Marketing, networking - Changing the perception among technological employees and employers currently in the central Israel, introducing Yeruham as a center where human capital and infrastructures meet their needs. 4. Establishing a local Impact Foundation to incentivize and help technological startup companies operate in Yeruham. 5. Establishing hi-tech parks and commercial areas that will enable technological companies to develop in Yeruham. 6. Establishing, expanding and increasing technological majors within the educational system. •

Printed On: 14 January 2023

Ness Returning Application 2023

1

Yeruham - From Traditional Industry to Aerospace Leadership

Tzeirim Beyeruham

Aerospace Economy in Yeruham Yeruham enjoys a relative advantage of expansive land resources and aerial flight zones, as well weather conditions enabling aerial operations 95% of the year. Over the past year, we’ve progressed a great deal in our collaboration with the Ministry of Defense, Ayalon Highways, the Innovation Authority, tech companies, academia and defense industries toward enlarging the aerospace economic cluster. Some of first year achievements: Visits, conferences and competitions: • UVID 2021, 2022 – Hosting international conferences on UAS, drones, education and academia. • MoSAIC challenge – Hosting an international competition together with the U.S. DoD on Indoor drones. • DroNegev Hackathon conducted at the CanNegev incubator in Yeruham, aiming to grow startup companies that will operate in Yeruham. • National drone competition for youth took place in Yeruham in April 2022. A drone Testing field was built and operates in Yeruham. Leading private sector companies performed more than 25 experiments. The professional training program was launched. Tech19 was established that currently employs 10 high tech employees. Providing services to leading aerospace companies. A town employment center was established and is active. A coalition for space government tender was established. Establishment of two more work areas for tech companies is proceeding. important visits toward promoting the program, including the Ministry of Defense Director General, Minister of Transportation, Head of the Innovation Authority, CEO of IAI and more.

Measures of Success- Quantitative and Qualitative*

List 4-5 key quantitative measures of success to date. For example: • # of people who will benefit and specific populations • # and types of events • # of new partners • # and types of changes made in the community as a result of the project • Changes in the organization, community, etc. • As a result of the project, about 30 people from Yeruham and the area were positioned in high-paying technological jobs. • As a result of the establishment of Tech 19 from the 19 group, several companies from the aerospace field expanded their operations to Yeruham. Among the companies: ISI, Down-Wind, Convexum, Elbit and others. • As a result of the attractiveness created, 0 companies and human capital left Yeruham, even though they had good opportunities • 30% increase in STEM students last year from Yeruham residence. • In CanNegev Incubator there are now 20 ideas in the accelerator and 8 fully funded portfolio companies.

Challenges*

Provide details of challenges your organization is encountering in the implementation of this program and if there are any associated changes in your original objectives, staffing, project plans, or timelines.

Please be honest and transparent with your answers to this question.

It’s a great challenge to convince commercial companies from the center to outsource projects to companies in the far south. A small number of people in the eastern Negev potential for technological conversion courses. As a result small courses with a high cost per capita. A small number of large employers in the south in general and in Yeruham in particular who can take in juniors employees.

Printed On: 14 January 2023

Ness Returning Application 2023

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Yeruham - From Traditional Industry to Aerospace Leadership

Tzeirim Beyeruham

A certain withdrawal from the willingness of employers in central Israel to employ 3 days a week or more in a remote employment. A challenging space tender that conditions requires recruiting business partners who are willing to invest 6 million dollars. Despite this, there is a lot of impact in the further development of the drone cluster. The ability to create regional collaborations to carry out large projects and increase the impact. The concern for a sufficient budget that will allow implemented the ambitious plan. The process to establish an impact investment fund is more complicated and takes longer than we expected.

New Project Summary* Summarize the need and overall intended impact of new grant. Describe • Changes in strategies and activities from the prior year • Why the funding needed now • Partner organizations and funders • How the project will improve the Negev and its residents. Main Activities Planned for the Upcoming Year: Bidding on the space tender. Establishing a government-funded experimental cage and control center for the UAV and drone testing field. A bid for operating the testing field will be published – consisting of ~10 technological positions for residents of Yeruham and the region. Promoting the establishment of an aerospace and high tech academy in Yeruham, together with Sapir College, Reichman University and Google with the aim of producing academic activity as a complement to the ecosystem. Starting drone delivery operations from the Terminal-X Ecommerce logistics center in Yeruham and Supersal supermarket – an out breaking initiative that will create more positions in the field. Continuing hosting visits, competitions, hackathons and conferences that will increase awareness that Yeruham is Israel’s aerospace city. Increasing business collaborations between companies in Yeruham and business and governmental companies in Israel and around the world, thus further increasing quality employment opportunities in Yeruham. Helping to remove barriers and encourage the private sector to finish the renovation of 500 meter of high tech space in central Yeruham in order to impact the entire region.

Amount Requested*

Amount Requested for 2022-2023 $225,000.00

Project Budget*

What is the total project budget? $1,426,000.00

Project Start Date* 07/01/2023

Project End Date* 06/30/2024

Population*

Indicate the specific population or organization that will be impacted during this grant period, including numbers and demographics. Are there any changes from the original project?

Printed On: 14 January 2023

Ness Returning Application 2023

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Yeruham - From Traditional Industry to Aerospace Leadership

Tzeirim Beyeruham

The number of residents in Yeruham increased by 4% per year. Out of this 2% is positive immigration of middle class families - the project provides an employment solution for these families. About 50 young people who previously acquired a technological education in the local education system are released from the IDF every year. Young mothers who are currently employed in jobs that require no skill at all or are unemployed. We estimate that there are many dozens of women in this situation in Yeruham. Dozens of engineers and scientists who live in Yeruham and are employed by companies in the center of the country. They and spend many hours on the roads. Unfortunately, every year some of them give up and leave the south.

Goals, Tasks and Timeline*

List three intended goals with outcomes to be pursued during the year (in order of importance) With each goal/outcome, describe how your intended impact will be achieved, by specific strategies and activities that you will implement. With each goal/outcome, provide 4-5 measures of success that you will be measuring during the course of the grant, Please use a table or spreadsheet, or distinct bullet points. Ex. • quantitative measures: # of people, # of sessions, # of new initiatives,# new partners) • qualitative: changes in processes, changes in attitudes, skills, cultural enrichment) • organizational: growth goals, stronger leadership/vision and/or changing focus on communities, significant growth in partnerships tasks 2023-2024.xlsx file attached

Program Evaluation*

What internal review process(es) have you used in evaluating your current effort? What efforts are you planning to use for the future stage of this program? Who is in charge of this? What are your tools and methods, such as surveys, interviews, focus groups, follow-up questionnaires, communal feedback, interim discussions with staff, interim reports based on each phase or stage of the project? Please be specific and realistic. Town employment center collects and reports the numbers of those talented in the technology trainings and tracks every placement of a Yeruham resident in technology companies. A demographic development coordinator follows up on families that move to Yeruham and makes sure that they receive an adequate employment solution. The project manager is in continuous contact with the companies in Yeruham, the companies that have the potential to expand activity in Yeruham and with the entrepreneurs who live in the city. Ensures maximum realization of the connections' potential. The project manager collects all the data into one clear picture of successes and failures.

Organization information Organization Information*

What is the overall Amuta budget for the year? How many employees? $3,700,000.00

Organizational Changes*

What organizational changes have occurred since you began your project? (e.g. mission, staff, board members, communities served, budget, partners, etc.) How is this impacting your project? Please list and describe these changes. In the past, two parallel organizations dealing with employment existed in Yeruham.

Printed On: 14 January 2023

Ness Returning Application 2023

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Yeruham - From Traditional Industry to Aerospace Leadership

Tzeirim Beyeruham

As part of the project and in a deep strategic process, the two entities were united into a town "one stop shop" employment center with a common vision, an updated organizational structure and routines that respond to the need. As part of the process, control mechanisms, measurement methods and data systems were defined. Tech19 was established. Providing services to leading aerospace companies. A flexible engineering house that enables us to respond to diverse business clients and in this way allows us to guarantee permanent engineering positions. The project manager - a position that became possible due to the implementation of the project manages regular routines with all the parties in the town that allows synchronization of the entire system.

Budget Budget Report to date*

Please complete a budget report. Indicate by column, approved and actual expenses to date, in XL format, for the current funded project. Upload it here. You may use a https://docs.google.com/spreadsheets/d/1WQEcRvIyHHGVBlTZ0CQvS7ZtxMx1RjWPLI2zTeJRWiw/edit?usp=shari ngsample form. See attached forms ‫ דוח אמצע‬- 2022 ‫תקציב אירוספייס הגשה‬.xlsx

Proposed Project Budget*

Please upload a proposed budget, as an XL spreadsheet for the proposed project. Justify your expenses below. Please indicate if there are other funders and if their commitment is pending or confirmed. You may use the sample budget. 24-23 ‫תקציב אירוספייס‬.xlsx

Additional Funding Indicate additional funding partners including government funding, by source for this project during this grant period. Indicate whether it is pending or confirmed. Directorate General of Labor, Yeruham Local Council, Negev Galilee Ministry, Minestry of defence, Rashi Foundation, Wertheimer Foundation, IAI, ISI Ministry of Housing

Sustainability Future Sustainability*

How does your organization plan to support this project once Ness funding ends? What efforts have you made so far and what is planned? As time passes and Yeruham is seen as a national hub in the aerospace field, more and more large and small business companies are expressing great interest in opening a branch in Yeruham. The connection with the academy is getting tighter in such a way that we believe that a funded academic branch will be establish in Yeruham in the near further. We are still putting a lot of effort into establishing an investment fund that will support companies that operate abroad and employ highly paid workers. As Yeruham is seen as a national aerospace center, more government investments and projects are directed to this area.

File Attachment Summary Applicant File Uploads

• tasks 2023-2024.xlsx • ‫ דוח אמצע‬- 2022 ‫תקציב אירוספייס הגשה‬.xlsx Printed On: 14 January 2023

Ness Returning Application 2023

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Yeruham - From Traditional Industry to Aerospace Leadership

Tzeirim Beyeruham

• 24-23 ‫תקציב אירוספייס‬.xlsx

Supporting Documents

No files were uploaded

Printed On: 14 January 2023

Ness Returning Application 2023

6

goal

Increasing the number of high-paying positions

Attracting technology companies to Yeruham

Changing the image of employment potential for Yeruham residents

task

timeline

measuring

Employers' fair Technological trainings Outsourcing contracts with companies in Yeruham Completion of renovation of a 500 square meter commercial space Matching between employers and employees by the HR mechanism Professional tours for representatives of relevant private and government companies Representation Yeruham at relevant technological conferences Aerial experiments at the test field in Yeruham Completion of the establishment of a national test field for drones Active LinkedIn page

2/23, 2/24 First half of 2023

At least 15 employers in each fair 50 participants

all year

5 contracts

Aug-23

50 hi-tech stations are ready

all year

200 successful matches per year

all year

30 tours a year

all year UVID at 11/2023

4 conferences a year

all year

25 experiments a year

Oct-23

The flight cage is up and running

30 post per year 4 conferences and Conferences and competitions competitions a year Media activity all year

500 followers on Yeruham page 250 participants outside at the various conferences 10 articles about Yeruham aerospace

Topic

Ministry Local organizational infrastructure for promoting technological employment and training

Ministry

Yeruham

Negev G Chaim K

Digital Is Financing technological training, soft skill training and pre-training programs

Ministry

Werthei

Ministry

Flexible tools for training, accompanying and Ministry incentivizing employees under 50 Ness Fu

Ministry Yeruham Aerospace Project Manager

Stef We

Ness Fu Aerospace technology consultants and scientists - Accompanying government tender bids

Bank Ha Flexible tools for incentivizing employers

Negev G Ness Fu

Yeruham National branding and marketing as a means for attracting employers

Ministry

Ministry

Ness Fu

Financing Entities

Total Budget

Request of Ness Foundation

(NIS)

(NIS)

₪ 1,350,000

₪0

₪ 500,000

₪0

₪ 350,000

₪ 250,000

₪ 300,000

₪ 200,000

₪ 250,000

₪ 250,000

₪ 1,050,000

₪ 250,000

₪ 240,000

₪ 100,000

y of Defense

y of Economy ( Welfare in past)

m Local Council

Galilee Ministry Katzman

srael

y of Labor

imer Foundation

y of Housing

y of Economy ( Welfare in past)

und - Requested

y of Economy

ertheimer Foundation

und - Requested

aPoalim

Galilee und - Requested

m Local Council

y of Housing

y of the Interior

und - Requested

Total

Total$

₪ 4,040,000 $1,188,235

₪ 1,050,000 $308,824

Request of Ness Foundation

Total exeuted budget dec 2022 (for all 2022)

Ness Foundation exeuted budget dec 2022

$0

USD (=3.4NIS)

$0

$405,000

$0

$0

$140,000

$0

$73,529

$30,000

$0

$58,824

$60,000

$30,000

$73,529

$0

$0

$73,529

$190,000

$0

$0 $29,412

$90,000 $0

$308,824 $308,824

$915,000 $915,000

$30,000 $30,000

Total for Project ₪ 700,000 ₪ 200,000 ₪ 650,000 ₪ 225,000 ₪ 150,000 ₪ 150,000 ₪ 180,000 ₪ 400,000 ₪ 215,000 ₪ 120,000 ₪ 1,050,000 ₪ 4,040,000

(3.12 ‫ )לפי‬$ $224,359 $64,103 $208,333 $72,115 $48,077 $48,077 $57,692 $128,205 $68,910 $38,462 $336,538 $1,294,872

Total for Project ₪ 1,350,000 ₪ 500,000 ₪ 350,000 ₪ 300,000

(3.12 ‫ )לפי‬$ $432,692 $160,256 $112,179 $96,154

₪ 250,000 ₪ 1,050,000 ₪ 240,000 ₪ 4,040,000 ₪ 1,050,000 0

$80,128 $336,538 $76,923 $1,294,872 $336,538

confirmed or Prospective confirmed confirmed confirmed confirmed prospective confirmed confirmed confirmed prospective confirmed request

Organization: Zvi Project name: Yeruham - From Traditional Industry to Aerospace Leadership Revenue

Ministry of Economy ( Welfare in past) Yeruham Local Council Negev Galilee Ministry Digital Israel Wertheimer Foundation Ministry of Housing Bank HaPoalim Haim Katzman Ministry of the Interior Ness Grant request Total revenue for project

Expenses Local organizational infrastructure for promoting technological employment and training Financing technological training, soft skill training and pre-training programs Flexible tools for training, accompanying and incentivizing employees under 50 Yeruham Aerospace Project Manager Aerospace technology consultants and scientists - Accompanying government tender bids Flexible tools for incentivizing employers National branding and marketing as a means for attracting employers

Total Expenses for project Total Grant request Revenue-Expenses

Topic

Ministry Local organizational infrastructure for promoting technological employment and training

Ministry

Yeruham

Negev G Chaim K

Digital Is Financing technological training, soft skill training and pre-training programs

Ministry

Werthei

Ministry

Flexible tools for training, accompanying and Ministry incentivizing employees under 50 Ness Fu Yeruham Aerospace Project Manager

Stef We

Ness Fu

Aerospace technology consultants and scientists - Accompanying government tender bids

Bank Ha Flexible tools for incentivizing employers

Negev G Ness Fu

Yeruham National branding and marketing as a means for attracting employers

Ministry

Ministry

Ness Fu Total

Financing Entities

Total Budget

Request of Ness Foundation

(NIS)

(NIS)

₪ 1,350,000

₪0

₪ 500,000

₪0

₪ 350,000

₪ 250,000

₪ 300,000

₪ 200,000

₪ 250,000

₪ 250,000

₪ 1,050,000

₪ 250,000

₪ 240,000

₪ 100,000

₪ 4,040,000

₪ 1,050,000

y of Defense

y of Economy ( Welfare in past)

m Local Council

Galilee Ministry Katzman

srael

y of Labor

imer Foundation

y of Housing

y of Economy ( Welfare in past)

und - Requested

ertheimer Foundation

und - Requested

aPoalim

Galilee und - Requested

m Local Council

y of Housing

y of the Interior

und - Requested

Request of Ness Foundation USD (=3.12NIS)

$0

$0

$80,128 $64,103 $80,128

$80,128

$32,051

$336,538

(NIS) Flexible tools for training, accompanying and incentivizing employees under 50

A breakdown of NESS expenses USD (=3.12NIS)

₪ 250,000

$80,128

₪ 200,000

$64,103

₪ 250,000

$80,128

Flexible tools for incentivizing employers

₪ 250,000

$80,128

National branding and marketing as a means for attracting employers

₪ 100,000

$0

Total

₪ 1,050,000

$336,538

Yeruham Aerospace Project Manager Aerospace technology consultants and scientists -

down of NESS expenses Details scholarships during training

(NIS)

USD (=3.12NIS)

₪ 100,000

$32,051

₪ 80,000

$25,641

₪ 70,000

$22,436

₪ 200,000

$64,103

₪ 250,000

$80,128

Incentivizing the relocation of senior

₪ 125,000

$40,064

subsidizing rental of hi-tech space and financially

₪ 125,000

$40,064

Hosting Conferences Experiments and competitions

₪ 60,000

$19,231

Promotion on social networks

₪ 20,000

$6,410

Hosting entrepreneurs and investors

₪ 20,000

$6,410

learning community with meet ups/networking accompanying employees after placement

Total for Project ₪ 700,000 ₪ 800,000 ₪ 500,000 ₪ 320,000 ₪ 200,000 ₪ 1,000,000 ₪ 150,000 ₪ 300,000 ₪ 950,000 ₪ 4,920,000

(3.45 ‫ )לפי‬$ $202,899 $231,884 $144,928 $92,754 $57,971 $289,855 $43,478 $86,957 $275,362 $1,426,087

confirmed or Prospective confirmed confirmed prospective confirmed prospective prospective prospective confirmed request

NESS Grant NESS Grant Other Grant/InTotal for Project Total for Project Request Request kind ₪ 1,750,000 $507,246 ₪0 $0 ₪ 1,720,000 $498,551 ₪0 $0 ₪ 300,000 $86,957 ₪ 300,000 $86,957 ₪ 550,000 $159,420 ₪ 250,000 $72,464 ₪ 350,000 $101,449 ₪ 200,000 $57,971 ₪ 250,000 $72,464 ₪ 200,000 $57,971 ₪ 4,920,000 $1,426,087 ₪ 950,000 $275,362 ₪ 950,000 $275,362 ₪0 $0

Organization: Zvi Project name: Yeruham - From Traditional Industry to Aerospace Leadership year II

Directorate General of Labor Yeruham Local Council Negev Galilee Ministry Minestry of defence Rashi Foundation Wertheimer Foundation IAI, ISI Ministry of Housing

Revenue

Ness Grant request Total revenue for project

Expenses Local organizational infrastructure for promoting technological employment and training technological training, soft skill training and pre-training programs Yeruham Aerospace Project Manager Flexible tools for incentivizing employers Aerospace technology consultants and scientists Marketing networking, hosting conferences, competitions and visits by senior officials

Total Expenses for project Total Grant request Revenue-Expenses