Quarter 2 - 2018
WHY ECONOMIC DEVELOPMENT MATTERS.
INVESTOR BREAKFAST RECAP THE AUTOMATION LANDSCAPE RIGHT PLACE INSTAGRAM LAUNCH
is now available online!
We’ve just launched an online version of the RPI Insider, available to all of our investors. This digital edition will make it easier to print, save, and share the RPI Insider. To access your online copy of this issue, follow these steps:
1. Visit www.rightplace.org/insider 2. Enter the passcode: RightPlace1985
TABLE OF CONTENTS
3
12
18
Economic Development Progress Update 2018 Projects and 3-Year Progress
FEATURE ARTICLE: Why Economic Development Matters
Figuring Out the Automation Dilemma
20
16
Meet the Team Michigan Manufacturing Technical Center – West
4
Investor Breakfast Recap Cybersecurity
Projects Jedco Inc.
24
Parker Hannifin Corp Agropur Nartel USA HexArmor GRIMM Ventra Ionia Main, LLC ADAC Automotive
17
Calendar of Events
Right Place Instagram Launch Share Your West Michigan Life!
25
11
Etc. Intern Spotlight
Investor Spotlight Spectrum Health
1
TABLE OF CONTENTS
YOUR DIRECT PATH TO BUSINESS GROWTH.
Running a growing business is dicult enough. And as you grow, knowing what resources are available, where to find them, and when to reach out can be another challenge entirely.
Fortunately, we’re here to help make those challenges easier. The Right Place is your single source for business success in West Michigan, providing you with the tools and support you need to continue doing what you do best—running your business.
Find guidance, resources, and a team ready to help at rightplace.org .
info@rightplace.org \ 616-771-0325
2018 Economic Development Projects ECONOMIC DEVELOPMENT PROGRESS UPDATE
ECONOMIC DEVELOPMENT PROJECTS COMPLETED: 16 ANNUAL GOAL: 17 MANUFACTURING SUPPORT CONTRACTS COMPLETED: 86 ANNUAL GOAL: 120 COMPANIES SERVED: 369 ANNUAL GOAL: 400 CUMULATIVE COMPANY ASSISTS: 964 ANNUAL GOAL: 1,333 WORK-READY TALENT ASSISTS: 247 ANNUAL GOAL: 525 EVENT ATTENDEES: 986 ANNUAL GOAL: 1,600
Retained Jobs
New Jobs
Company
Payroll
Investment
Axis Company LLC
50
$4,248,400
$4,000,000
Foremost Farms Greenville
33
$1,621,620
$57,952,000
MPH Trucking and Logistics
22
$515,840
$2,701,360
VNA Corporation
4
$323,980
$25,000
Jedco Inc
39
$2,014,480
$9,290,000
Parker Hannifin Corp
46
$1,952,340
$5,100,000
Agropur Nartel USA
62
$2,554,396
$21,300,000
HexArmor
50
$2,473,900
$8,750,000
Amazon
1,000 $30,000,000
$150,000,000
Grimm (SMFS, Inc.)
27
$4,071,600
$601,312
Ventra Ionia Main, LLC
109
$6,201,000
$4,850,000
Tech Defenders
115
$3,516,240
$2,709,000
ADAC Automotive
50
$4,504,448
$21,294,678
Auvesy GmbH & Co KG
3
$312,624
$154,980
Larry's Tire, Inc
30
10
$962,000
$1,000,000
Greenville Cabinet
9
$277,056
$850,000
Totals
39
1,620 $65,549,924 $290,578,330
ANNUAL GOAL: 1,400
2018 TOTAL: 1,659
NEW/RETAINED JOBS
3-YEAR GOAL: 4,200
3-YEAR TOTAL: 3,091
ANNUAL GOAL: $50,000,000
2018 TOTAL: $65,549,924
NEW/RETAINED PAYROLL
3-YEAR GOAL: $150,000,000
3-YEAR TOTAL: $135,706,762
ANNUAL GOAL: $167,000,000
2018 TOTAL: $290,578,330
NEW CAPITAL INVESTMENT
3-YEAR GOAL: $500,000,000
3-YEAR TOTAL: $410,373,687
3
ECONOMIC DEVELOPMENT PROGRESS UPDATE
JEDCO INC.
Aerospace manufacturer expanding Grand Rapids facility
With increased sales expected over the next several years, Jedco needs to expand its operations by growing production and overall capacity in order to meet customer demand. The MEDC supported this new development with the approval of a $215,000 Michigan Business Development Program performance-based grant. Jedco’s core manufacturing capabilities include: welding, thermal forming, machining, mechanical forming and rolling, and chemical cleaning and etching. With NADCAP certifications in several manufacturing processes, Jedco has become a critical aerospace manufacturer in the region. “Michigan has doubled-down on its efforts to support the aerospace and defense industry in the state," said Eric Icard, Senior Business Development Manager, The Right Place, Inc. “Jedco is a perfect example of how Michigan manufacturers can provide expert supply chain support
In March, Grand Rapids-based Jedco, Inc. announced the expansion of its local aerospace manufacturing facility. Over the next three years, the company will invest $9 million in new machinery and equipment, and create 39 new jobs. Jedco is a fabricator of gas turbine engines and other aerospace components produced from high strength, high temperature alloys with a specialized focus on engineered flaps, seals, combustor cans, and shields. The company currently employs 167 high- skilled employees at its 111,000 sq. ft. facility on the west side of Grand Rapids. “We are excited about this new growth chapter in Jedco’s history,” said Dan Szymanski, CEOandChairmanof theBoard, Jedco, Inc. “The Right Place, the MEDC, and the City of Grand Rapids provided the support and business case we needed to continue growing here in the city.”
to these two growing industries.” For more information on Jedco, visit www.jedco.us .
4
PARKER HANNIFIN CORP
Global manufacturer Parker Hannifin to expand Lakeview facility
with the MEDC, West Michigan Works!, Montcalm Community College and the Village of Lakeview put this project in the win column.” The MEDC is supporting the project with the approval of a $250,000 Michigan Business Development Program Grant through the Michigan Strategic Fund. In addition, the company is also expected to apply for a local P.A. 198 tax abatement through the Village of Lakeview. For more information on Parker Hannifin, visit www.parker.com .
Thenew30,000 sq. ft. expansion inLakeview will house a consolidated operation that is currently located in Ohio. By consolidating these two operations into one location, Parker will be poised to accelerate growth in the polymer fitting markets. “Parker has been a stable presence in Lakeview, and the fact that they have chosen to bring this expansion here speaks volumes of their confidence in the ability to continue tobesuccessful,” said Kathy JoVanderLaan, Business Development Coordinator – Montcalm County, The Right Place, Inc. “As always, The Right Place and Montcalm Economic Alliance’s great partnerships
Ohio-based Parker Hannifin Corporation, a global leader in motion and control technologies, is expanding its manufacturing operations in Lakeview, Mich. The company currently employs 116 people at the Lakeview facility, and expects to create at least 46 additional full-time manufacturing and salaried jobs. “We are delighted that Parker has chosen to expand in Lakeview,” said Shay Gallaher, Village Manager, Village of Lakeview. “They have been outstanding corporate citizens in our community and we look forward to working with them for the next chapter of their growth story here in Montcalm County.” Parker employs more than 55,000 globally, and the company has been publicly traded on the New York Stock Exchange (PH) since 1964. The Lakeview facility, part of the Fluid System Connectors Division of Parker, was established in 1976 with 10 employees in a small rented building on the north edge of the Village of Lakeview. The Lakeview site expanded to its current site in 1979 with a 27,000 sq. ft. new building, and again expanded to its current footprint at 80,000 sq. ft. in 1996. “Bringing these operations together under one roof will create new efficiencies and opportunities for the Fluid System Connectors Division,” said a company representative. “The Village of Lakeview, Montcalm Economic Alliance and the MEDC were there to assist us at every point during our evaluation process. Their collaborative support reassured our decision to expand in Lakeview.”
5
2018 ECONOMIC SUCCESS STORIES
AGROPUR NARTEL USA
Agropur, Inc. announces Wyoming facility expansion to meet growing demand
The City of Wyoming was chosen over multiple competing sites in other states. The Right Place worked in collaboration with the MEDC to ensure the project happened in West Michigan, and also connected the company with workforce development resources at West Michigan Works! to assist with talent attraction and workforce training. “Agropur’s decision to invest $21.3 million and createmore than 60 jobs is a tremendous win for West Michigan and the region's growing food processing sector,” said Thad Rieder, Senior Business Development Manager, The Right Place. “By partnering with the City of Wyoming, West Michigan Works!, Grand Rapids Community College and MEDC, The Right Place has been able to coordinate talent, training, and financial tools to boost Agropur’s internal return for this important expansion.” The MEDC is supporting the expansion effort with a $434,000 Michigan Business Development Program performance-based grant. The expansion will also be supported locally by a P.A. 198 tax abatement from the City of Wyoming. “The City of Wyoming is a phenomenal place for manufacturing and we are so proud to have companies like Agropur in our community,” said Mayor Jack Poll, City of Wyoming. “We are excited to be a part of their growth story and we look forward towatching their continued success.” For more information on Agropur, Inc., visit www.agropur.com/en .
Due to growing customer demand, the majority of the upcoming $21.3 million expansion project will be for new equipment, with a portion going towards building modifications. This investment will result in a modernized production line and increased production capacity. “We’re excited to be expanding our facility in Grand Rapids, which will allow us to better serve our customers,” said Doug Simon, President of US Operations, Agropur. “This investment is a key to continuing Agropur’s impressive growth, and will also create jobs in the state of Michigan.”
Wisconsin-based Agropur, Inc. is a leader in the dairy industry, processing more than 13 billion pounds of milk per year at its 39 plants across North America. In April, the company announced it will invest $21.3 million to expand its existing local facility inWyoming, whichwill lead to the creation of 62 new jobs over the next three years. Agropur is the American subsidiary of Agropur Cooperative, a dairy manufacturer headquartered in Canada. Its Wyoming facility primarily produces various shelf- stable dairy products, which are distributed across the country.
6
2018 ECONOMIC SUCCESS STORIES
HEXARMOR
HexArmor to expand operations in Grand Rapids
on the HexArmor expansion. “We firmly believe that our region’s strong work ethic, culture and innovativeness is what retains and attracts blue chip companies like HexArmor in West Michigan.” “HexArmor’s decision to continue growing in Grand Rapids further solidifies the city’s reputation as a talent attraction magnet with a skilled workforce,” said KaraWood, City of Grand Rapids Managing Director of Economic Development Services. “We look forward to supporting their expansion as they rehabilitate this underutilized property.” For more information on HexArmor visit www.hexarmor.com .
The Right Place worked in collaboration with the company and MEDC to ensure HexArmor continued to remain in Grand Rapids. The Right Place also connected HexArmor to workforce development resources at West Michigan Works! to assist with worker training. The MEDC is supporting the expansion effort with the approval of a $350,000 Michigan Business Development Program performance-based grant. “West Michigan’s manufacturing community continues to grow, and HexArmor is part of that growth story,” said Thad Rieder, Senior Business Development Manager, The Right Place, Inc. and project lead
In May, Grand Rapids-based HexArmor announced an expansion that will result in the creation of 50 new jobs and a capital investment of $8.7 million. The company provides industrial personal protection equipment (IPPE), primarily offering cut and puncture resistant gloves and armguards, with recent product line expansions now including safety eyewear. Over the years, HexArmor has redefined the hand safety market with its high performance products, eliminating millions of hand injuries worldwide. Since its start in 2002, HexArmor has seen significant growth, and now stands at around 130 full-time employees. This upcoming expansion was driven by warehousing needs, along with a strategic partnership with Germany-based uvex Safety Group. This partnership has allowed HexArmor to immediately expand its portfolio of industry-leading IPPE and enter new markets. The new location on Leffingwell Ave will provide HexArmor room to grow, and will also revitalize an obsolete building. The company plans to totally renovate the existing 52,000 s.f. building and to take occupancy of the rehabilitated facility in early 2019. The facility, when completed, will include office, warehousing, and light manufacturing space. “HexArmor is strongly committed to growth in the City of Grand Rapids, and we feel this vibrant community is the best place for both our business and employees,” said SteveVanErmen, President and CEOof HexArmor. “We’re grateful for the support of The Right Place and their partners at the MEDC and City of Grand Rapids as we enter this next phase of growth.”
7
2018 ECONOMIC SUCCESS STORIES
GRIMM (SMFS, INC.)
Cybersecurity company selects first Michigan location
automotive and aerospace demand. This first of its kind cybersecurity research lab in Sparta, Michigan will be strategically positioned for GRIMM to grow its high- tech workforce in Michigan. “Downtown Sparta was the ideal location for our cybersecurity research lab,” said Brian DeMuth, CEO, GRIMM. “West Michigan’s low cost of doing business, combined with its talented pool of technology workers will make our company more competitive. We are thankful for the support and guidance of organizations like The Right Place and MEDC as we pursue our accelerated growth plans.” The Right Place worked in collaboration with the Michigan Economic Development Corporation (MEDC) to ensure GRIMM selected West Michigan for its new location. The Right Place assisted the company with identifying possible sites and connected them to workforce development resources at West Michigan Works! to aid with talent recruitment and training. The MEDC is supporting the expansion effort with the approval of a $216,000 Michigan Business Development Program performance-based grant. “GRIMM’s decision to open its first cybersecurity research lab inWest Michigan speaks to the strength of our region’s technology hub,” said Jennifer Wangler, Business Development Manager, The Right Place, Inc. The Village of Sparta is supportive of GRIMM’s decision to open its new location in the heart of downtown Sparta. “The Village of Sparta is pleased GRIMM is investing in the Village of Sparta for its expansion,” said Julius Suchy, Sparta Village Manager. “I have high hopes for GRIMM not only as a business but as a community partner for Sparta as a whole.” More information about GRIMM is available at www.grimm-co.com .
Based in Arlington, Va., GRIMM is a security engineering and consulting firm that researches, develops, and advises on cybersecurity. It serves a wide variety of government and commercial clients from diverse industries, providing security consulting, vulnerability research/testing, and security training. Its new location in Sparta will primarily be focused on cybersecurity for the automotive and aerospace industries. GRIMM is forecasting aggressive growth over the next three years, and planning to expand its workforce across the U.S. with a focus on Michigan to meet its
Virginia-based GRIMM, a service-disabled, veteran-owned small business, announced it will open its first Michigan location in the Village of Sparta. The company plans to invest $621,000 and create 27 high tech jobs over the next three years.
8
2018 ECONOMIC SUCCESS STORIES
VENTRA IONIA MAIN, LLC
Ionia automotive supply chain manufacturer announces facility expansion
The MEDC is supporting the new development with the approval of a $600,000 Michigan Business Development Program performance-based grant.
Indiana for the project. The Right Place worked with the company in collaboration with the MEDC to ensure the expansion project happened in West Michigan. The Right Place also connected Ventra to workforce development resources at West Michigan Works! to assist with talent recruitment and training. “Ventra and the Ionia business community continue to be a vibrant contributor to West Michigan’s economic growth,” said Therese Thill, Vice President, Business Development, and project lead. “We are proud to support another growing business that will create jobs right here in West Michigan.”
Ventra Ionia, an automotive manufacturer of front and rear bumpers and grille assemblies, plans to expand its current operations in Ionia, Michigan. The company intends to purchase an existing 48,900 square foot facility adjacent to its existing facility, resulting in 109 new jobs and a capital investment of up to $4,850,000. This expansion will allow the company to move an existing portion of the business to the newly purchased building, freeing upmuch needed space in the main facility for a new Ford Ranger bumper program. The new program is likely to include assembly, paint, and/or chrome finishing. “Today’s news wouldn’t be possible if not for the commitment and talent of our workforce in Ionia, a workforce that has been directly responsible for years of success and now an extremely promising future for our Ventra operation,” said Bill Beistline, Vice President of Procurement at Flex-N-Gate. “We are also grateful to The Right Place, The Ionia County Economic Alliance and the Michigan Economic Development Corporation, because it takes a special kind of partnership to create jobs and make expansion plans of this magnitude a reality. Our company is proud to operate 12 plants and two Development Centers in Michigan, all of them thriving, and there is no question the best days for our Ventra operation in Ionia are just ahead.” Headquartered in Urbana, Illinois, Flex- N-Gate, the parent company of Ventra Ionia, employs more than 26,000 people at 62 manufacturing facilities and multiple product development and engineering facilities throughout the United States, Canada, Mexico, Argentina, Brazil, China, Germany, France and Spain. The Right Place and West Michigan competed against several other states, including existing locations in Illinois and
9
2018 ECONOMIC SUCCESS STORIES
ADAC AUTOMOTIVE
The Right Place assists ADAC Automotive with local expansion
said Jen Wangler, Business Development Manager, The Right Place, Inc. and project lead. “Facilities like these create the knowledge-based jobs that will drive innovation and product development in West Michigan.” Cascade Township is supportive of ADAC’s continued growth, and has approved a P.A. 198 tax abatement in support of both the expansion and new headquarters facility. “ADAC has been an outstanding business partner in our community for decades and continues to support Cascade with new investments,” said Rob Beahan, Township supervisor. “On behalf of the Township board and the community, we are proud to acknowledge the economic investment ADAC is making in Cascade with the approval of two IFT agreements. We look forward to its continued success and are proud to be the community ADAC calls home.” Formore information onADACAutomotive, visit www.adacautomotive.com .
Cascade Township. It will also expand its current facility by 24,000 square feet. Ultimately, the goal of the expansion is to have all Grand Rapids personnel located within one eight-acre campus. “This new combined location will open new doors of innovation and collaboration for ADAC,” said ADAC President & CEO Jim Teets. “We thank The Right Place for their continued support, providing the strategic assistance we needed to make this project happen in West Michigan.” The Right Place worked in collaboration with the company and the Michigan Economic Development Corporation (MEDC) to ensure ADAC continued its growth West Michigan versus other states. The Right Place also connected ADAC to workforce development resources at West Michigan Works! to assist with worker training. “Retaining strategic operations like ADAC’s R&D and headquarters are essential to our region’s long-term economic health,”
ADAC Automotive, a leading global manufacturer of automotive parts, has announced the expansion of its current operations in Cascade Township. The company’s new eight-acre corporate campus will result in the creation of 50 new jobs and a capital investment of more than $20 million over the next three years. ADAC, now a Tier 1 auto-supplier, was founded in the Grand Rapids area in 1975 and employs over 1,200 people in West Michigan. They design innovative solutions for inside and outside handles, next generation passive entry and electronics integration, exterior mirrors, body side moldings, fuel doors, rear upper spoilers, and rear access systems. As part of this expansion, ADAC is shifting its focus to new products within the automotive mobility environment, including the development and manufacturing of electronic components. To accommodate this growth, the company will be building a new 56,000 square foot headquarters near its existing facility in
10
2018 ECONOMIC SUCCESS STORIES
A vested interest in creating opportunity, attracting employers, and offering families and individuals a high quality of life
For the past 16 years, it has been my privilege to work with community, business and philanthropic leaders committed not only to high quality, integrated health care in West Michigan, but also to the long-term economic health of our region. As West Michigan’s only locally governed, integrated health system, as well as its largest employer, Spectrum Health has a vested interest in the health of the communities we serve; it’s our mission. We also have a vested interest in helping to make West Michigan a region that creates opportunity, attracts employers, and offers families and individuals a high quality of life.
These are just a few of West Michigan’s underlying attributes that are helping to establish new industries, retool old ones, breathe new life into facilities, grow opportunity, attract investment and provide innovative programs to the underserved – efforts that are positively impacting the region, and will continue to do so for years to come.”
I’ve come to recognize several special characteristics about West Michigan that have enabled our community to forge ahead through periods of economic stress, industry upheaval and political and social change, emerging each time stronger, more cohesive and with a stronger dedication to working together for the good of all of our citizens: An exceptional work ethic, a strong entrepreneurial spirit, a desire to collaborate, a willingness to embrace and support change, and the generosity of the region’s philanthropic community.
Richard C. Breon President and CEO Spectrum Health
11
INVESTOR SPOTLIGHT
12
WHY ECONOMIC DEVELOPMENT MATTERS.
Today, more than ever, economic development organizations are playing a strategic role in shaping the economic future of communities.
13
W hen the term economic development is mentioned, it sparks a wide array of definitions, models, and perceptions in the mind. The phrase is used to describe anything from job creation and business growth, to improving quality of life and vibrancy, and everything in-between. It has also become a favored, and in some cases, bemoaned, term during political seasons. So, what is it about this term that raises so many ideas and opinions? What is economic development? And, more importantly, why does it matter?
WHAT IS ECONOMIC DEVELOPMENT?
WHY IS ECONOMIC DEVELOPMENT IMPORTANT? For any community to prosper, its citizens must have employment opportunities, and its government must be able to generate revenue to provide the quality of life services its citizens desire. Economic and personal prosperity starts with a quality job. Without a stable source of income, an individual’s freedoms and growth potential is dramatically reduced. Few other things in life have such an impact on a person’s life than a job. This is why economic development organizations like The Right Place are so focused on job creation in our community. This is accomplished by working with both existing businesses in West Michigan and attracting new businesses fromoutside the region. The result of this work is the retention and creation of new jobs, increased local investment, diversification of the local economy, and the increase of the local tax base to support a community’s quality of life. Here are just a few of the ways in which economic development is critical to a region:
Economic development is the strategy and process of improving the economic well-being and quality of life in a community. At its heart, economic development is about building prosperous regional economies that drive long-term growth opportunities for all of its citizens. Amy Liu, Vice President and Director of the Metropolitan Policy Program at The Brookings Institution describes the goal of economic development as: “To put a regional economy on a trajectory of higher growth (growth) that increases the productivity of firms and workers (prosperity) and raises standards of living for all (inclusion), thus achieving deep prosperity—growth that is robust, shared, and enduring.” With definitions and goals as broad as these, it’s easy to see why the term economic development is applied to so many areas. It is because economic development is at the core of nearly every aspect of our community.
14
WHY ECONOMIC DEVELOPMENT MATTERS
ways from formal events to collaborative business-to-business networking. The Right Place accomplishes this through countless educational events for business leaders and facilitating industry councils that promote open collaboration and shared learning. INCREASED TAX BASE: The additional revenue received from business expansions completed by economic development organizations support, maintain, and improve local infrastructure and amenities like roads, parks, libraries, and emergency services. And although economic incentives are often used to secure a local business expansion in a community, those incentives are often short-term. The long-term benefits of a growing business in a community far exceed the short-term incentive investment. SELF-SUFFICIENCY: Strong, growing businesses build strong communities. And, astrongereconomicbase means public services are less dependent on state and federal resources, which can vary with each election cycle. As economic development organizations work with businesses to grow and expand, local economies have a sustainable, reliable tax base and revenue.
QUALITY OF LIFE: More local tax dollars and jobs raise the prosperity tide for the entire community, including the overall standard of living of the residents. With more and more talent selecting a location before a job, it is imperative that communities have the resources to continue investing in and improving quality of life. WHY THE RIGHT PLACE? Since 1985, The Right Place has led West Michigan’s economic growth strategy in many of these areas. Simply put, The Right Place is your single source for business success in the region. No other organization in the region provides the level of confidential and comprehensive business services growing companies need to succeed here in West Michigan. Our work has resulted in billions of new capital investment, and thousands of new and retained jobs over the past three decades. As we enter an election season with discussions of business and job growth taking center stage, let’s remember what economic development means and why it matters. Let’s continue to invest in the economic future of our communities.
BUSINESS RETENTION AND EXPANSION:
This is the base of all economic development efforts. Successful economic strategies focus first and foremost on existing businesses in the region. Businesses that are engaged and connected to the community are more likely to stay and continue investing in the local economy. This has been a cornerstone of The Right Place’s economic development strategy for over three decades. Each year, we meet with over 400 existing businesses in West Michigan, providing business growth services and support. BUSINESS ATTRACTION: Comprehensive economic development strategies complement business retention work with a robust business attraction strategy. Attracting new business to a community grows the overall economic “pie chart” of a community. The Right Place achieves this goal with a national and international business development program that ensures that growing businesses around the world are aware of the assets in West Michigan. JOB CREATION AND RETENTION: Job creation and retention are why economic development organizations exist. It is the ultimate outcome of our work. Economic development organizations serve a unique role in working directly with business owners in the region on their growth plans that lead new jobs in the community. Over the past three decades, The Right Place has spurred the creation and retention of over 45,000 jobs in West Michigan. ECONOMIC DIVERSIFICATION: A diversified economic base reduces a community's vulnerability to the market fluctuations of a single business sector. Economic development organizations work to identify new market opportunities in local economies and build strategies to grow new, local business sectors. Over the years, The Right Place has worked with regional business leaders to build the region’s medical device industry, aerospace and defense industry, and many others. COMPETITIVENESS: Economic developers keep their communities and regions globally competitive by bringing new resources, opportunities, and ideas to area businesses. This is accomplished in a wide variety of
15
WHY ECONOMIC DEVELOPMENT MATTERS
INVESTOR BREAKFAST 2018 SERIES Cybersecurity: Protecting your valuable business information
• Chris Winczewski , founder of Blueshift ID, an IT security firm
a data breach, companies aremaking their first call to their outside counsel so the results of an internal investigations can fall under the umbrella of attorney-client privilege. It’s oneway to prevent proprietary information from ending up in public police reports. Most companies don't have adequate cyber insurance, assuming a rider to their general liability policy will suffice. Those policies protect third parties, but they don’t cover business interruption, attorney fees and other IT costs, Muth says. A burgeoning security measure more companies are exploring is blockchain technology, which allows digital information to be distributed but not copied. Developed for cryptocurrencies in the past decade, blockchain offers a secure way to protect data from hackers in some situations, Winczewski said. However, blockchain technology is not a “magic bullet” that solves every cybersecurity problem. It is a powerful tool that has great potential in certain environments. If you want to learn more or cybersecurity resources inWest Michigan, or connect with TheRight Place team, contact JenWanglerat 616.771.0326 or wanglerj@rightplace.org .
One of the biggest challenges facing companies in this digital age is protecting critical data and intellectual property from hackers. The average cost of a data breach in the U.S. is $7.3 million, reflecting a 30 percent hike since 2013, according to a 2017 analysis by the Ponemon Institute and IBM. The majority of the costs are indirect expenses, such as staff hours, lost goodwill, and “churn.” One third of costs are direct. They include money spent on outside counsel and experts, ID theft insurance, and notifications. This was the focus of our most recent Right Place Investor Breakfast event. On June 20th, over 125 business leaders and Right Place investors heard from three industry experts on the subject: • Ryan Bonner , director of compliance at Brightline Technologies Inc. in Brighton, MI • Jeff Muth , an attorney with the law firm of Miller Johnson
• Jeff Williams , managing partner at Atomic Object, moderated the panel In the next two years, expect to see an uptick in regulatory standards and requirements when it comes to cybersecurity, says Bonner. The European Union’s recently approved General Data Protection Regulation “GDPR” has some of the strictest regulations in the world, with potential multimillion- dollar fines for violators. GDPR requires notification of a data breach within 72 hours of discovery. It also gives customers the right to be forgotten, which means their data must be purged from a system upon request. Often, a company’s cybersecurity exposure can be mitigated with low-tech solutions, such as policies and procedures, employee training, risk transfer, and attorney-client privilege. The best first step in protecting security is beefing up privacy policies and procedures. Adata breach response protocol should be part of employee training and updated every year. After the discovery of
16
INVESTOR BREAKFAST
Share Your West Michigan Life!
Quality of life. Although it may not make the news headlines, it’s an important strength of the West Michigan region. As outlined in our Strategic Plan, The Right Place relies on three assets as the building blocksof long-termeconomicgrowth: quality of life, work-ready talent, and infrastructure. Quality of life is one of the top factors determining business location and it also plays a role in retaining talent in the region. The Right Place is currently engaged in over 60 community organizations and initiatives to support efforts to increase quality of life and economic growth. Recently, we’ve been looking for newways to highlight what it’s like to live and work in West Michigan. With an increase in digital media usage and the need to highlight West Michigan living, The Right Place has launched its own Instagram account. This social media platform serves as a way to display why West Michigan is a great place to live and do business. STRATEGY Striving to go a different route, The Right Place decided the best strategy to feature West Michigan living is through stories. The Right Place Instagram provides not only vibrant photographs of the area, but stories of WestMichigan residents, students, business owners, and more. TheWest Michigan region has a lively fine arts and entertainment scene along with great communities. The Right Place wants to tell the West Michigan story through the people that live and work here, and Instagram is the ideal way to do that. WANT TO BE FEATURED? People featured on the account should be ones who love living and working in West Michigan. We are looking for a wide range of backgrounds and ages as well as employees from many different companies. If you would like to be featured or know someone who would like to be featured, please contact Lina Lintemuth, Digital Marketing Coordinator, at lintemuthl@rightplace.org , or use the hashtag #WestMiLife . Follow us at @westmichiganlife as we tell the West Michigan story.
17
RIGHT PLACE INSTAGRAM LAUNCH
Figuring Out the Automation Dilemma
Free webinar explains what companies need to know
18
AUTOMATION WEBINAR
Automation can seem like the obvious fix for many of the challenges facing Michigan’s small manufacturers — from a shortage of skilledworkers to increasing product quality. With sales of robots, cobots, and other industry 4.0 technologies skyrocketing, many executives are asking themselves: Where do we start? What makes sense for our business? What’s the total cost? The webinar “The Automation Landscape: A real-world approach to automated manufacturing” tackled those questions. More than 200 professionals participated in the March 27 session featuring experts from the Michigan Manufacturing Technology Center-West (MMTC-West), Zeeland-based consulting firmDisher andWest Michigan business publication MiBiz. “Quality and efficiency issues topped the reasons companies consider investing in automation,” says MiBiz Publisher Brian Edwards, citing a recent MiBiz survey of nearly 300 businesses. JoeDyer,TeamLeadforDisher’sManufacturing Tech Service, suggests these strategies for companies considering automation: • Learn the lingo: Know the difference between a robot and a cobot. • Grow and train your team: Continue to recruit the next generation of workers. • Network with people, not just machines: Use conferences, websites, and publications to stay informed and connected. • Ruthlessly find and reduce waste: Focus should be on an activity, not a person. • Improve productivity: Begin with an assessment process. • Invest wisely: Understand the total cost of automation. • Be creative in implementing change: Don’t be afraid to try something new. Before investing in automation equipment, companies need to make sure plant floors are running in ways that promote maximum efficiency. Disher created a productivity assessment program to help manufacturers determine where to make production process improvements in preparation for automation. Theanswer isn’ta blanket implementation of automation. Instead of investing in complex and expensive automation equipment, consider choosing the simplest option for the task at hand, which often proves the most reliable. • Become holistic change agents: Employee empowerment is key.
to others who have added automation into their operations. To help connect manufacturers considering automation, MMTC-West created an automation user group. Facilitated by engineers fromDisher, the group meets monthly to discuss best practices, challenges, pros and cons to certain equipment and other automation- related topics. While automation represents a risk, even a modest investment in the technology can position a small manufacturer to remain competitive for years to come. But it’s not a one-size-fits-all approach. Every company is different and unique, which is why it always pays to do your homework. To learnmore, check out the free 50-minute webinar on the MiBiz website. mibiz.com/automation
Small manufacturers also need to have a clear understanding of the entire cost that incorporating automation will have on their operation. Hidden expenses can include additional maintenance, increased energy, service contracts and downtime in production due to breakdowns. “Manufacturers usually can expect to see returns on their investments in automation in 1 to 2 years,” Dyer said. While costs have fallen over the years, automation still can be a major investment for somemanufacturers. Changes to the U.S. tax code under the Trump administration aim to cushion those expenses. Companies can nowdeduct the entire cost of equipment in a given year, rather than only a portion. Agoodway tosortoutvendors, technologies, and implementation strategies is to talk
149
AUTOMATION WEBINAR
Michigan Manufacturing Technical Center – West
This issue’s “Meet the Team” section focuses on our Michigan Manufacturing Technology Center – West (MMTC-West) team. MMTC-West is a critical part of our ability to provide expert service to West Michigan’s small and medium-sized manufacturers. Since 1991, MMTC has helped small and medium-sized manufacturers become stronger and more competitive. Designed to meet their specific needs, MMTC develops more effective business leaders, drives product and process innovation, promotes company- wide operational excellence, and fosters creative strategies for business growth and greater profitability. For more information on the team, visit: mmtcwest.org
1620
MMTC-WEST
Justine Burdette Vice President, Technical Services, The Right Place Regional Director, Michigan Manufacturing Technology Center (MMTC-West) ABOUT JUSTINE BURDETTE Justine Burdette provides consulting and training to small and mid-sized manufacturers in the 13-county Region 4 area (Allegan, Barry, Ionia, Kent, Lake, Mason, Mecosta, Montcalm, Muskegon, Newaygo, Oceana, Osceola, and Ottawa). She and her team work to improve the competitiveness of manufacturers by assisting with activities that focus on growth and innovation, continuous (lean) improvement, quality systems, and safety and environmental initiatives. PAST EXPERIENCE Justine grew up in a family business (apparel manufacturing) and has 10 years’ experience in a variety of industries. Prior to joining The Right Place and The Center, Justine was a consultant for both for- and non-profits. Her background also includes training and operations management.
René Booker MMTC-West, Executive Assistant ABOUT RENÉ BOOKER René Booker provides administrative support for MMTC-West events, marketing, and internal continuous improvement efforts. She also supports The Right Place/ MMTC-West Manufacturers, Supply Chain Management, and Food Processors Councils. PAST EXPERIENCE René joined the team in 2017, bringing with her an entrepreneurial background in careertechnical training. Shehasapassion for creating employment opportunities for individuals and communities. EDUCATION • Bachelors in Psychology | Hope College • Masters in Family Studies | Michigan State University FAVORITE PART ABOUT LIVING IN WEST MICHIGAN Since moving to West Michigan in 1987 my favorite part of the area is taking in the beautyof LakeMichigan; whether it is sitting at the beach in the summer or walking along the frozen shores during the winter I never take for granted the natural treasure that is always there to enjoy.
Amy Winkler MMTC-West, Client Coordinator ABOUT AMY WINKLER AmyWinkler is the Client Coordinator for the Michigan Manufacturing Technology Center-West Regional Office at The Right Place, Inc. Amy coordinates customer consulting and training projects, user groups and workshops, and monitors these activities’ compliance with contractual reporting requirements. FAVORITE PART ABOUT LIVING IN WEST MICHIGAN Amy’s favorite part about living in West Michigan is that it is family-friendly. She loves that there are lots of activities for every age group and personality.
EDUCATION • Bachelors in Art History| Roosevelt University
FAVORITE PART ABOUT LIVING IN WEST MICHIGAN Justine’s favorite part about living in West Michigan is the easy access to arts and cultural events and the great outdoors.
21
MMTC-WEST
Jess Cruz MMTC-West, Senior Business Development Manager
Ben Wood MMTC-West, Business Development Specialist ABOUT BEN WOOD Ben is responsible for working with small to medium sized manufacturers in West Michigan, focusing on Mason, Lake, Osceola, Oceana, Newaygo, Mecosta, Muskegon, Montcalm, Ionia, andNorthern Kent Counties. Ben also builds and manages partner collaborations with regional economic development offices, manufacturing organizations, workforce development organizations, and a network of subcontractors to provide the best overall solution to the company. PAST EXPERIENCE Before coming to The Right Place, Ben worked as the General Manager of Aquest Machining for three years. He has also held the position of General Manager at Belding Tool and at Fastenal. COMMUNITY INVOLVEMENT • Montcalm/Ionia County United Way board member • Leadership Montcalm board member • Youth sports coaching CERTIFICATIONS AND AWARDS • OSHA 10 certified EDUCATION • Bachelor of Business Administration | Western Michigan University FAVORITE PART ABOUT LIVING IN WEST MICHIGAN Ben’s favorite part about living in West Michigan are the four seasons and the collaborative spirit amongst manufacturers.
Terry Hossink MMTC-West, Business Development Specialist ABOUT TERRY HOSSINK As amember of theMichiganManufacturing Technology Center-West team, Terry is responsible for working with small manufacturers in West Michigan to help them assess their opportunities for continuous improvement and growth. As a Business Development Specialist, Terry’s focus is on Allegan and Ottawa Counties. PAST EXPERIENCE Terry has over 30 years of manufacturing experience with processes such as thermo- forming, stamping, sheetmetal, machining, assembly, and extrusion. He has worked in the roles of Shop Floor Supervisor, Production Manager, Plant Manager, and quoting and lean implementation for a number of tier 1 and aftermarket automotive companies. COMMUNITY INVOLVEMENT • 16 years as a township trustee and planning commissioner EDUCATION • Business Administration, History | Calvin College FAVORITE PART ABOUT LIVING IN WEST MICHIGAN Terry’s favorite part about living in West Michigan is the variety of recreational pursuits, whether it is water, land, or air based. “In the same day you can hike, bike, kayak, swim, practice photography, and sit by a campfire.”
ABOUT JESS CRUZ As a senior member of the MMTC-West team, Jess educates and advises small and medium-sized manufacturers in Kent and Barry Counties. He supports their efforts to retain sales, gain new sales, and achieve cost savings for their respective businesses. PAST EXPERIENCE Jess has 30-plus years of lean operations managementexperienceatvariouscompanies including DENSOManufacturing Michigan, MANN+HUMMEL, and Bosch Automotive. His experiences in world class tier 1 automotive manufacturing managing and optimizing production processes contributes to his passion to support small to mid-size companies. CERTIFICATIONS AND AWARDS • Certified Business Solutions Professional • DENSO Team of the Year • DENSO North American Quality Circle Award • MANN+HUMMEL, Germany-Total Productive Maintenance Award • MANN+HUMMEL Management System- Top 10 Best Practices FAVORITE PART ABOUT LIVING IN WEST MICHIGAN Jess’ favorite part about living in West Michigan is the diversity of people, businesses, and seasons. He loves that it is truly the place to work, live, and play.
22
MMTC-WEST
THE RIGHT PLACE PARTNER PROGRAM Bring new value to your clients.
By partnering with The Right Place, you can leverage our services and resources to bring an enhanced level of service to your local clients. Together, we can drive the creation of new jobs and investment in West Michigan. What to listen for: 1. GROWING AND EXPANDING COMPANIES 2. TALENT AND TRAINING NEEDS 3. BUSINESS TRANSITIONS OR SUCCESSIONS 4. NEW MARKET DIVERSIFICATION 5. OPERATIONAL IMPROVEMENT NEEDS
Contact our business development team today: 616-771-0325 or info@rightplace.org
CALENDAR OF EVENTS S M T W T F S AUGUST 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 S M T W T F S SEPTEMBER 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 S M T W T F S OCTOBER 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
WEST MICHIGAN DEFENSE EVENT Thursday, August 2 4:00 - 6:30 p.m.
L. William Seidman Center - Grand Valley State University For more information and to register, email Natalia Kovicak at: kovicakn@rightplace.org
COMMODITY TRENDS 2019 OUTLOOK Wednesday, September 12 GVSU Eberhard Center
MANUFACTURING LEADERSHIP SUMMIT
Tuesday, October 30 8:00 a.m. - 5:00 p.m. Amway Grand Plaza
Join West Michigan's manufacturing leaders as they discuss the future of manufacturing and its digital transformation. The Manufacturing Leadership Summit will bring together the region's manufacturing community for a day of exploring the latest industry advancements and future trends. Attendees will gain competitive insights from leading speakers, discover new best practices, and attain the knowledge and resources they need to plan for the future. Topics of discussion include: the Industrial Internet of Things, Artificial Intelligence, Automation, Big Data, Blockchain, Leadership, and much more. Learn more and register at www.mfgleadershipsummit.com
For more information on upcoming events, visit: rightplace.org/events
The Right Place welcomes new team members
LINA LINTEMUTH Lina Lintemuth has recently joined The Right Place team as the organization’s Digital Marketing Coordinator. In her new role, Lina supports the organization’s digital marketing efforts by managing social media channels, websites, and email marketing. Prior to joining The Right Place team, Lina was a Community Relations Intern at Lake Michigan Credit Union. She has also worked as a Public Relations Intern and Associate at Richett Media, and as a Marketing and Communications Assistant for Ferris State University.
JULIE BURRELL Julie Burrell has also joined The Right Place team, taking on the role of Business Development Coordinator for Newaygo County. Julie provides business support services to companies throughout Newaygo County, and works to improve its overall economic state through business retention, expansion, and attraction. Prior to joining The Right Place, Julie worked for 14 years in the telecommunications industry at companies such as Sprint and Frontier. She is currently the owner and inventor of Pumpndo LLC.
Lina Lintemuth
Birgit Klohs nominated for E&Y 2018 Entrepreneur of the Year
President and CEO of The Right Place, Inc., Birgit Klohs, was named as a finalist for the 2018 Entrepreneur of the Year Award in Michigan and Northwest Ohio region by EY. Klohs was selected by a panel of independent judges for the awards program, which recognizes entrepreneurs who are excelling in innovation, financial performance, and personal commitment to their businesses and communities.
Julie Burrell
Birgit Klohs
25
NEW HIRES & AWARDS
Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28Made with FlippingBook - professional solution for displaying marketing and sales documents online