Crain's Grand Rapids Business, July 24, 2023

CRAINSGRANDRAPIDS.COM I JULY 24, 2023

Tighter public nuisance rules create tension Businesses, civic leaders torn on latest proposals to curb downtown panhandling

By Kate Carlson

Construction continues on LG Energy Solution Michigan’s $1.7 billion expansion in Holland. | KAYLEIGH VAN WYK

LG ENERGY SOLUTION OFFERS LOOK INSIDE Facility will feature many smart manufacturing components

By Kayleigh Van Wyk

Construction on LG Energy Solution Michigan’s $1.7 billion expansion in Holland is on track as the company aims to solidify its leadership in the electric vehicle battery market.

LGES Michigan, a wholly owned subsidiary of Seoul, South Korea-based LG Energy Solution, is set to add roughly 1.7 million square feet to its existing manufacturing campus in Hol-

land off East 48th Street. The project footprint is nearly double the size of the company’s original expansion plan.

The addition will consist of a new main facility plus several other buildings to help boost the production of lithium-ion polymer battery cells and packs, which LGES began manufacturing at its original Holland facility in 2010.

“We are going to be adding production capacity and upgrading the technology,” Roger

Traboulay, senior manager of energy engineering for LGES Michigan, said during a media preview event earlier this month.

The Michigan Strategic Fund board recently approved the company’s request to extend certain milestones required to receive state incentives after delays with the initial project rollout.

However, Traboulay said this was a result of a “communication See LG ENERGY on Page 51

The Grand Rapids City Commission spent hours considering a set of polarizing ordinance changes related to disorderly conduct and “public nuisances.”

The proposed regulations, stemming from a growing chorus of business leaders calling for the city to take action against aggressive panhandling and litter, have also drawn rebukes from civil rights groups and housing advocates for targeting the city’s homeless population.

The proposals would tighten local regulations on public nuisances as well as disorderly con-

Grand Rapids City Hall. | ANDY BALASKOVITZ

duct. The nuisance code amendments would limit the amount of personal property a person is allowed in public places to items that fit in an enclosed 32-gallon container. Designated city employees could impound possessions that exceed that threshold without notice in some cases, and people could reclaim their property within 30 days before it is discarded.

See PANHANDLING on Page 52

Is region ripe for hotel-to-residential?

A local multifamily real estate investor is already betting on it

By Rachel Watson

A Grand Rapids multifamily real estate investor is revamping his firm to concentrate on converting extended-stay hotels into much-needed workforce housing.

Alex Cartwright, an associate professor of economics at Ferris State University and managing partner and co-founder of Grand Rapids-based Vilicus Capital, said he recently began looking for extended-stay or financially

struggling hotels to transform into studio and one-bedroom apartment complexes.

He said his goal is to renovate properties to comply with building codes for housing and rent the units for about $700 to $800 apiece for working-class households.

The apartment complexes would contain amenities such as pools, fitness centers and co-working spaces.

Vilicus thus far has three hotel conversion projects in progress in the Houston area and is actively hunting for properties in greater Grand Rapids that would fit with this development model.

See HOUSING on Page 52

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POLITICS/ POLICY Film incentives are back on the table in Michigan.

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REAL ESTATE Owner aims to hand off Spring Lake ‘bootlegger house.’

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FORUM Drivers, advocates and critics take on state auto insurance reforms PAGE 9

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Pure Michigan to scale back national ad campaign Changes will take place next year after $15M funding hit

By Rachel Watson

The state tourism office plans to cancel much of its national Pure Michigan advertising next year to account for a budget that’s about $15 million lighter than initially expected.

Gov. Gretchen Whitmer’s budget proposal announced in February included plans to direct $15 million in federal funding to Pure Michigan alongside a $15 million state general fund allocation. A House Fiscal Agency report on the pro-

posed 2023-24 budget published June 28 shows the state Legislature and executive branch agreed to eliminate that federal funding.

Representatives from the Whitmer administration and the Michigan Economic Development Corp.

(MEDC) told Crain’s Grand Rapids Business the $15 million, which was to come from the State Fiscal Recovery Fund established as part of the American Rescue Plan Act, was eliminated because the SFRF ended with the COVID-19 emergency.

Whitmer’s office said in a state-

ment drawing tourists is still a priority for the administration.

According to the statement: “Governor Whitmer has been on a mission to make Michigan a top place to live, work, and play. That’s why she’s brought together lawmakers on both sides of the aisle to boost our state’s economic competitiveness, increase investment in our pure Michigan outdoor economy and tourism, and rebuild the infrastructure around See ADVERTISING on Page 53

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Film incentives are back on the table in Michigan ‘Tiresome rerun’ or potential blockbuster?

By Kayleigh Van Wyk

will improve the area’s walkability and make life easier for residents in the long run.

The completed phase one of the project focused on the east side of the Plainfield stretch, while road work now turns to the western half for phase two, which will close that side of the road from July to September, according to a letter sent from the city to Plainfield businesses in April.

The projects have closed some Creston Neighborhood streets entirely, rerouting traffic via Three Mile Road, Monroe Avenue

State lawmakers have reintroduced a tax incentive program for the film and multimedia industry to help lure production back to Michigan, hoping to overcome opposition stemming from a previous program.

Introduced earlier this month, the Multimedia Jobs Act would provide incentives for Michigan-produced multimedia projects such as film, television and streaming in hopes of retaining Michigan talent and stimulating economic activity.

The proposed incentives would operate as a transferable tax credit instead of a rebate, as was the case under film incentives enacted during former Gov. Jennifer Granholm’s administration. Tax credits would stay in Michigan and benefit Michigan companies, according to proponents of the bills.

“One of the things we wanted to do (with this new legislation) is prioritize Michigan,” said Alexander Page, chairperson of the Michigan Film Industry Association’s (MiFIA) Legislative Action Committee and member of its board of directors. “We don’t feel like the state should be in the business of issuing checks. We wanted to make sure that this was changed, and so this is structured as a tax credit.”

The new two-bill package was introduced in the House by Rep. John Roth, R-Interlochen, and Rep. Jason Hoskins, D-Southfield, as House Bills 4907-4908. Sen. Dayna Polehanki, D-Livonia, and Jeremy Moss, D-Southfield, introduced identical bills in the Senate

See CRESTON on Page 53

See FILM on Page 53

Construction continues to restrict access to businesses along a roughly 1-mile stretch of Plainfield Avenue in Grand Rapids’ Creston neighborhood. | ABBY POIRIER

Creston businesses contend with months-long construction Shops band together with ways to draw visitors | BY ABBY POIRIER Creston neighborhood businesses say they are struggling to attract customers given the restricted access to their locations caused by the summer-long road reconstruction project on Plainfield Avenue.

While local companies understand that the refresh is a needed improvement to the neighborhood, they’re grappling to maintain and attract summer business, an endeavor that’s bringing the Creston business community together and forcing creativity, sources told Crain’s Grand Rapids Business.

Rachel Lee, the owner of River

North Public House at 2115 Plainfield Ave. NE, said the restaurant has started hosting “construction happy hours” and putting together detour maps to help customers navigate the web of road barricades, all in an attempt to keep business coming through the door.

The construction project, which started in May and is slated to run through September, is reconstructing the roughly 1-mile stretch of Plainfield Avenue from Marywood Drive to Ellsmere Street. The city also is updating sidewalks and parkways and replacing water mains, work that

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U Club prepares $3M renovation at new home Social club hopes to roughly double its membership

By Kate Carlson

The University Club of Grand Rapids is set to kick off a $3 million renovation at the historic Peninsular Club building downtown, where club officials hope to provide an inclusive space to grow the club’s membership.

Celebrating its centennial anniversary this year, the University Club on July 11 hosted a tour of its new headquarters at 116 and 120 Ottawa Ave. NW. The social club is set to move into the nearly 110-year-old downtown building by the end of the year and occupy the majority of the five-story, 41,000-square-foot space.

The relocation comes after building ownership changed hands earlier this year from the DeVos family, which invested about $10 million in renovations from 2008 to 2013. RDV Corp., the DeVos family office that relocated its headquarters from the Pen Club in 2021, sold the property for nearly $6.4 million earlier this year to Simplified Facilities LLC, which is registered to developer and premium boat dealer Tommy’s Boats President Matthew Borisch.

Following the property deal, the University Club is now taking steps to make the Pen Club building its new home and roughly double its membership.

The University Club of Grand Rapids is moving into the 110-yearold Peninsular Club building later this year. | JOE BOOMGAARD

University Club board secretary Elizabeth Goede said the organization is in a “building phase” of growing its membership from about 250 to 600 people once renovations are completed by the end of this year.

“People are looking for ways to have community in this day and age,” Goede said. “Especially when you work by yourself all day, you want to go to a place where you know there will be people you can meet. If I go to the bar at the U Club, they know what kind of drink I want and they know what my food allergies are, and I don’t have to say it, they already know.”

The club also formed a diversity, equity and inclusion committee this year in an effort to diversify its membership, Goede said.

“The U Club was the first club in

The Centennial Bar will be added to the second floor of the historic Peninsular Club building, where the University Club is relocating later this year. | KATHRYN CHAPLOW INTERIOR DESIGN/INTEGRATED ARCHITECTURE

Grand Rapids that allowed women to have dinner here, which in the ’20s and ’30s was not very common,” Goede said. “It’s really important for us to encourage that this is not just for men, it’s for women and having diversity is really important to us. We want to be inclusive and make sure this is for everyone.”

For a monthly fee, University Club members have access to dining and event space; special member activities; networking; a speaker series focused on business, history and education; and an athletic club.

Construction started last week on the $3 million renovation to accommodate the U Club in the basement, second and third floors. Macatawa Bank operates a branch on the first floor, while the fourth and fifth

floors will house private offices.

Rockford Construction Co. is building out the U Club’s space, while Kathryn Chaplow Interior Design and Integrated Architecture LLC are designing the renovation.

The U Club is currently located on the 10th floor of the Fifth Third Center at 111 Lyon St. NW downtown. It also operates its athletic club in the basement and sub levels, where it will remain for members after the move to the Pen Club building.

The U Club’s current 10th-floor views are “of course very nice, but moving (to the Pen Club building) has the types of luxury services that will be matched with the kind of luxury atmosphere we haven’t had in a long time,” Goede said.

The renovation design focuses on creating different experiences as well as opportunities for smaller

gatherings, said Kathryn Chaplow, the interior design firm owner. Designers are updating and reusing furniture in the new building and from the University Club’s current space, Chaplow added.

“We want to have a perfect marriage of the history of the U Club and the story of the building which includes the Pen Club, and bring that story forward and use finishes that are a little more unexpected, fresh and current,” Chaplow said.

“So respecting the traditional architecture, but also introducing elements that won’t feel like they’re stuck in the past.”

The bulk of the renovations are taking place on the third floor and include adding a commercial kitchen and reconfiguring the 205-capacity ballroom dining and bar space. Most of the 268-capacity second floor will stay the same with multiple dining, lounge and meeting rooms, though it will include the new Centennial Bar — a nod to the club’s 100th anniversary this year. The basement level of the building will include a game room with a wine cellar, while a cigar bar will be added in the future.

The project will refrt the Pen Club building back to its original use as a social club. The DeVos family acquired the building in 2008, the same year that the Peninsular Club moved out of the building amid ongoing financial struggles.

Shortly after in 2010, the Peninsular Club disbanded after nearly 130 years of operation because of decreasing membership and financial problems.

Malamiah Juice Bar, wholesale business closes Pandemic, wage hikes and inflation are ‘perfect storm’ for some Black-owned businesses

By Abby Poirier

After a decade in business, Malamiah Juice Bar and Eatery closed its two Grand Rapids locations on June 30 and announced that it was discontinuing its Malamazing Juice Co. wholesale operations.

Jermale Eddie, owner and CEO of Malamiah, said the decision to close the locations at Studio Park and David D. Hunting YMCA “was kind of a shock to all of us” and “weighed on us heavily.” The business announced its closure to customers via a Facebook post on June 29.

Malamiah opened in 2013 as one of the original tenants of the Grand Rapids Downtown Market, selling fresh juices, juice cleanses and smoothies. The business, led by Eddie and his wife Anissa, took its name from the combined names of the couple’s three sons, Malachi, Nehemiah and Josiah.

Malamiah offered a range of juices targeting specific health benefits, including heart disease prevention, mood enhancement, immune system boosters and more. The company also provided cleansing drinks for customers 4 | CRAIN’S GRAND RAPIDS BUSINESS | July 24, 2023

looking to detox and individual juice subscription plans, made fresh from local ingredients as available and shipped directly to customers.

In 2019, Malamiah expanded into its own space at Studio Park in downtown Grand Rapids. That same year, the company established Malamazing Juice Co. to offer juices on a commercial scale.

Several West Michigan and national retailers and cafes, including Meijer-owned Fresh Thyme Market and neighborhood grocery store Bridge St. Market as well as Horrocks Market, picked up the brand.

The business opened its second location at the YMCA in July 2022, an expansion that seemed to signal positive growth.

However, Eddie said the COVID-19 pandemic’s effects had already taken their toll on Malamiah.

“It was hard to bounce back,” Eddie said. “Downtown, where we located, it just took a while for some businesses to see the traffic that they saw before the pandemic.

There weren’t a lot of folks downtown in their offices early on. Some of that definitely was part of our decision, and the increased cost of

Anissa and Jermale Eddie with their children Nehemiah, left, Josiah, center, and Malachi, right. | COURTESY PHOTO

just running the business was also part of it. I think we kind of grew fatigued during COVID.” Jamiel Robinson, founder and CEO of Grand Rapids Area Black Businesses (GRABB), a business development organization focused on boosting Black-owned businesses, said his team worked to support Malamiah when it first opened in 2013.

“They were one of the first recipients of our GRABB Awards back in 2014,” he said.

According to Robinson, the COVID-19 pandemic had a disproportionate effect on Black-owned businesses in West Michigan, many of which were undercapitalized and lacked the financial ability to

withstand the setbacks the pandemic brought with it. Coming out of the pandemic, businesses are facing wage increases, inflation and more, leading to a “fragile” outlook for Black businesses even post-pandemic, he said.

“It’s a perfect storm of things within the last three years that has really made it difficult for businesses that were already undercapitalized or disproportionately impacted by COVID to get back to full steam,” he said.

With Malamiah behind him, Eddie is focused on taking care of himself and growing personally, something he said was hard to do over the last few years as he nurtured his business.

“(I’m) just taking a little bit of a break to give myself some breathing room to make sure I’m on a solid foundation to reflect on lessons learned,” he said.

Eddie had been open about the pressure of leading what felt like a “10-year-old startup” as the effects of the pandemic began to wane, mentioning earlier this year that “entrepreneurship is a lonely place to be. Wellness was not a priority for me and others and we’re feeling that.”

With Malamiah now in the rearview mirror, Eddie said plans to stay active in the Grand Rapids business scene, using the lessons he learned over the last decade to help other West Michigan startups find success.

Eddie currently serves as the director of business development at SpringGR, a nonprofit helping local entrepreneurs grow their businesses.

“Malamiah Juice Bar was the vehicle that showed us what it took to run a business and how many doors you’ve got to knock on before you get the ‘yes,’” he said. “Now it’s an opportunity to begin to show others some of those paths as well.

We stood as long as we did because of the community, and they didn’t go anywhere. We’re not going anywhere.”

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Owner aims to hand off Spring Lake ‘bootlegger house’ Infamous past didn’t stop structure from becoming a family paradise

By Rachel Watson

An entrepreneur with a history degree, Kevin Kihnke was immediately drawn to one of the oldest homes on Spring Lake, especially after discovering a tunnel snaking underground from the lake to the barn.

Kihnke, owner of Nunica-based Magnum Coffee Co., was born and raised in Spring Lake and studied history at what is now Calvin University before earning an MBA from Western Michigan University.

He and his wife, Heloise, who now reside primarily in Florida, raised their three children, Aleksander, Christian and Victoria, on the lake.

During the Great Recession, Kihnke found a Tudor-style waterfront home at 18957 N. Fruitport Road that was in foreclosure. He bought the 3,400-square-foot property in April 2010 from Deutsche Bank in a short sale for $610,000.

After fixing up the place and hanging onto it for family use for the past 13 years, Kihnke listed the home for $1.79 million last month through his son, Alek Kihnke, with Coldwell Banker Woodland-Schmidt of Grand Haven.

A checkered past Kihnke said he was drawn to the home at first sight.

“It’s one of the original estate houses on the lake, and it’s got really good bones when you go into it … really good mojo,” Kihnke said.

Besides loving the vibe of the house, Kihnke learned from the previous owners and local lore that the property was supposedly a key stop on Al Capone’s bootlegger circuit between Canada and Chicago when Prohibition was in effect in the 1920s and ’30s.

He also learned there’s a tunnel that stretches from the lake beneath the yard, under two garages, all the way to the barn, where cases of liquor were briefly stored before being picked up by trucks.

“The old lorry truck could pull up to the double doors (of the barn), and then they would walk the booze from the lake, through the tunnel, up into the barn and then right into the lorry without being able to be seen,” Kihnke said.

Kihnke hasn’t been able to explore the tunnel because, although the ingress and egress access

The house at 18957 N. Fruitport Road in Spring Lake Township is for sale for $1.79 million.

The living room flows into a second sitting area. | PHOTOS BY KEVIN KIHNKE

points are still standing, many of the underground portions have collapsed and are impassable, so the doors were sealed up many years ago.

Giving it some TLC The home, which was built circa 1890 according to township property records, “was in a bit of disrepair” externally and needed some work when he bought it, Kihnke said.

“We redid all the shake (siding) and roofing and repainted it and basically did all the exterior type work,” he said.

The inside of the house, including the kitchen, bathrooms and floors, had been updated by the previous owners between 2007 and 2009.

and the roomy upstairs adds two baths and five bedrooms, one of which has a balcony overlooking the water.

Adjoining the large kitchen, the spacious dining room’s focal point is the traditional muntin windows on two walls, lending the room a view of the private forested side lawn and the lake.

The living room also looks over the lake and features an ornate fireplace with built-in shelving on one side.

A second sitting room connects to the living room and flows onto a small back patio framed by a pergola. There’s also a tiled sunroom off a main-floor office on the front of the house.

In addition to its 1.13 acres with 141 feet of lake access, the property features a two-car garage with additional storage, a shed that mimics the design of the house, a trio of benches shaded by another pergola in the yard, a deck on the top of the bluff that connects to a dock below by a staircase, and a gazebo at the lake level attached to the dock.

“It’s one of the original estate houses on the lake, and it’s got really good bones when you go into it … really good mojo.”

— Kevin Kihnke, homeowner

The most recent substantive upgrades before that were completed in 1989, according to Denise North, assistant assessor for Spring Lake Township.

Easy on the eye The home is painted in charming pastels throughout, with beautiful white trim and crown moldings, and light pine hardwood floors.

There’s a half-bath downstairs,

A family paradise For 13 years, the Kihnkes used the home as an “overflow property” each summer for extended family gatherings to accommodate their parents, siblings, nieces and nephews.

“We’ve had epic events there — weddings, birthday parties, themed parties, summer celebrations,” he said. “It was just a lot of really fun times with family and friends.”

Before Spring Lake Township banned short-term rentals in resi-

The deck is built on the ridge and connects to the dock by a staircase. Alek Kihnke said a big storm came through recently that damaged the dock, so the next owner will need to invest in repairs.

dential areas, the Kihnkes also used it as an Airbnb.

“The people that used to utilize it loved it,” he said.

Kihnke said he listed the property because he and his wife are at a stage of life now where they are spending more time down South, and their children and grandchildren are spreading their wings and spending more of their free time in other locations. “(The house) is probably not being utilized as much as it really deserves,” he said.

Both he and his son emphasized that they want to make preserving the house and its history a condition of any offer they’ll entertain.

Kihnke said over the years he even mulled the idea of seeking a historic preservation designation for the home, but never followed through.

“We’ve had several offers for it over the years where they wanted to remove the house and put a modern house on the lot. I don’t want to sell the house for somebody that doesn’t want to try to maintain it,” Kihnke said. “I don’t know how to explain it, but you just go into the house, and it has a certain permanence feeling that’s really quite unique. There’s a certain sense of history there that it’s hard to replicate or replace. …

I’ve got a soft spot for historical relevance.”

Buyer interest Alek Kihnke said the home has had several showings over the years, but his father is content to hang onto it until the right buyer comes along. The agent thinks the perfect buyer would be a boat owner, maybe someone whose primary residence is in Chicago and is looking for a second home.

He said they looked at a number of recent sales around Spring Lake at the same or similar square footage to determine the price, which is set at $526 per square foot. “(Between) newer construction and older construction, we kind of averaged it out to say, ‘Hey, this is the number we’re looking for,’” he said.

Alek Kihnke said in his opinion, the kitchen could be updated to look more modern, and some of the other interior rooms could be refreshed for today’s tastes.

“Whoever wants to buy it can make it their own,” he said. “Just the overall charm of the property deserves someone who wants to live there, (who) really wants to take care of the grounds and the historic nature of the property.”

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Budget includes funds for underserved communities Lenders have $19M in state money earmarked for deployment

By Mark Sanchez

The state of Michigan will offer $19 million in funding to organizations that offer loans and other support services to small businesses across Michigan that have difficulty accessing credit.

Lawmakers allocated the funding in a budget for the state’s 2024 fiscal year that starts Oct. 1 and, as of press time, awaits Gov. Gretchen Whitmer’s signature. The funding will go to certified community development financial institutions (CDFIs) that work with entrepreneurs, particularly in underserved, low-income and rural markets, and support projects for affordable housing.

The $19 million included in the next fiscal year state budget follows the $75 million that legislators earmarked for the 2023 fiscal year for nonprofit CDFIs in Michigan. The Michigan Economic Development Corp. that administers the Michigan CDFI Fund distributed about $67 million to dozens of CDFIs that operate in the state.

The more than 50 federally designated CDFIs in Michigan must use 80% of the funding they receive to provide financial services and products to small businesses that may not otherwise qualify for a conventional commercial loan from a bank or credit union because, for example, they lack adequate collateral or credit history, or their venture is deemed too risky.

Another 10% can go to support technical assistance to entrepreneurs, such as providing skills training and business coaching.

The remaining 10% can go to operations and administration.

The funding “will provide lowcost capital to the CDFI community so that we can continue to grow our lending programs,” said Jennifer Hayes, senior vice president of operations and policy at Invest Detroit that operates a CDFI. “A lot of the challenges we face in Detroit, we’re seeing in Grand Rapids, we’re seeing in Northern Michigan. There’s a lot of need for capital to different businesses, especially minority-led businesses, that banks aren’t able to lend to because of the way they’re regulated,” Hayes said. “We can really provide some great financing.”

A coalition of CDFIs that formed last year that secured $75 million in state funding sought another $75 million this year. Lawmakers who crafted the new state budget initially pared that amount to $35 million, and later to $19 million.

Just as with last year, the MEDC intends to seek applications from CDFIs for the new funding round.

“This is an opportunity to make sure that all Michiganders enjoy the same economic prosperity and access to resources across the state,” said Amy Rencher, senior vice president for small business services at the MEDC. Language in the budget that legislators adopted established the same guidelines for the Michigan CDFI Fund as last year that caps how much each CDFI can receive.

Nonprofit loan funds can get between $500,000 and $4 million, based on criteria in the budget bill.

Deposit institutions such as credit unions that have net assets of $500 million or less can receive up to $1 million for their CDFI, or up to $2.5 million if they have assets of $2 billion or more.

CDFI loan funds usually borrow the capital that they lend, said Elissa Sangalli, president of Northern Initiatives, a Marquette-based CDFI that works and lends throughout the state and issued $9 million in loans last year. Sangalli,

said.

CDFI lenders can help borrowers who don’t who chairs the Michigan qualify for a conventional CDFI Coalition, said the business loan to access state funding will help to the credit they need and keep capital costs down prepare them to qualify amid higher interest rates for future credit from a of the last two years. bank or credit union, the “The state’s support will Elissa Sangalli, help Northern Initiatives president, Northern MEDC’s Rencher said.

They offer “character offer reasonable loan Initiatives lending” that can “get you terms to our borrowers during this rising interest rate envi- in the door” and “help to bring ronment,” she wrote in an email to people into the capital continuum,” she added.

Crain’s Grand Rapids Business.

“CDFIs play a critical role in our The Michigan CDFI Coalition will continue to pursue additional lending and banking ecosystem state funding for CDFIs, Sangalli and eventually we want to get peo-

ple in the more traditional lending sphere,” Rencher said. “The goal, ultimately, that we’re all working toward is helping people move up the capital continuum.”

According to Washington, D.C.based trade group and financial intermediary Opportunity Finance Network, more than 1,300 CDFIs operate across the United States, with approximately 30 in Michigan. Some 60% of CDFI borrowers are people of color, 84% are low-income and 50% are women.

The MEDC expects to open the application process this fall and quickly deploy the available funding, according to state officials.

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CRAIN’S AUTO INSURANCE REFORM

Linda Irvine of Eastpointe is frustrated with her auto insurance costs. She says she pays about 10% of her income for a policy to cover her 2014 Chevy Sonic, though she has a good driving record. | QUINN BANKS

THE COMPLEX COSTS OF NO-FAULT COVERAGE IN MICHIGAN

Three years after new coverage rules were enacted, reaction is mixed | By Rachel Watson Metro Detroit resident Stan Grafinski is paying $6,972 a year, or about an eighth of his net income and more than his monthly house payment, to insure three vehicles for himself and his family.

Grafinski is semi-retired and works a part-time job with the city of Eastpointe, roughly 11 miles northeast of downtown Detroit. He pays a total of $581 per month for his auto insurance policy with Pioneer State Mutual Insurance Co., which covers his 2020 Ford F-150, 2020 Ford Explorer and 2019 Ford Escape.

He switched to Pioneer in February after his previous yearly premium of $6,552 was set to almost double through his previous insurer, Westfield Insurance. Pioneer’s rate was the best deal he could find.

He said he never lowered his coverage levels after the 2019 no-fault auto insurance reform took effect, ending the mandatory requirement that every motorist

Mercedes Watts says, post-reform, her auto insurance rates have climbed. | BRYAN ESLER

purchase unlimited personal injury protection or PIP medical coverage.

Grafinski is one of many Michigan resi-

dents who feel the no-fault auto insurance system is still broken despite the reforms.

The PIP portion of insured motorists’ total monthly premium pays for a person’s auto collision-related medical expenses, attendant care and lost wages after they’ve been injured in a car accident.

PIP benefits are required to be paid without regard to fault in accidents.

Michigan is one of 12 no-fault states and for many years has had the highest auto insurance costs of any U.S. state due to the unlimited PIP requirement for drivers. Similarly, Detroit has long been the most expensive city in the nation for auto insurance due to myriad nondriving factors used by insurers to set rates.

In the few years leading up to 2019, public figures like Detroit Mayor Mike Duggan and groups such as the Insurance Alliance of Michigan and the auto insurers they represent lobbied the then-Republican-majority Legislature for reform.

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AUTO INSURANCE REFORM

INSURANCE From Page 9

The 2019 law that resulted was designed to lower PIP premium costs for motorists by letting drivers opt out of unlimited PIP or choose lower coverage levels and by setting a rate cap on PIP depending on the coverage level chosen. It also instituted a medical fee schedule that set caps on how much providers like hospitals, doctors, rehabilitation clinics and other care providers could be reimbursed for treatment related to car accidents, to rein in what reform advocates described as rampant overcharging for care and to make the market more attractive to auto insurers that previously would not do business in Michigan.

Duggan said at the bill signing in 2019 that he believed most people in the state would save over $500 on their annual premiums as a result of reform.

But according to research conducted in summer 2022 by the Poverty Solutions team at the University of Michigan, most people (79.9%) are still opting for unlimited PIP coverage for their vehicles.

Folks like Grafinski never changed their coverage because, he learned switching would save him less than $150 a year — an amount he said “wasn’t worth” the risk of losing his peace of mind.

“It sucks,” he said of his high costs. “It’s a good chunk of money. … While I’m making, overall, a decent amount of money, it sucks that (auto insurance) is taking that much out of it.”

One of his fellow residents of Eastpointe, retired and disabled senior Linda Irvine, said she is still paying about 10% ($166.16) of her monthly net income, or $1,994 per year, toward her Frankenmuth Insurance policy for her 2014 Chevy Sonic. She said her premium went down by less than 1.7% in the first full year after reform took effect.

Like Grafinski, Irvine said she never felt comfortable opting out of unlimited coverage. Her annual premium decreased from $2,024 in 2020 to $1,990 in 2021. She said she believes the cost decrease was largely due to her increasing her deductible and lowering some of her other liability coverage limits.

Now, in 2023 under the same insurer, her annual premium has crept back up to $1,994.

Due to many factors that have historically been used for rate setting, car insurance costs are lower on the west side of the state, but residents there told Crain’s they feel they’re still too high.

Mercedes Watts, of the Grand Rapids suburb Jenison, works as an assistant public defender for Ottawa County. In 2020, the first year choice was available, she lowered her PIP coverage level to $500,000.

After switching to Liberty Mutual this year, she now pays $134 a month ($1,608 per year) for two vehicles: a 1997 Royal Crown Victoria and a 2009 Buick Enclave.

Watts said she switched because her previous insurer, Allstate, was

about to raise her monthly premium to $207.

Watts said post-reform, she didn’t see any cost savings; in fact, her rates continued to climb.

“I can’t not have it,” Watts said about her car insurance. “Whenever it increases, it’s a little bit of a hardship, I just have to move some things around because it has to get paid.”

Ned Andree, an independent contractor for nonprofits who lives in Grand Rapids, said he also didn’t see cost savings. His family’s unlimited PIP policy with Auto-Owners Insurance currently covers his and his wife’s 2021 Jeep Cherokee and their daughter’s 2012 Volkswagen Tiguan.

Prior to reform, they had two additional vehicles on their policy — a sports bike and their son’s vehicle. Since they’ve dropped those from their policy, he said it’s hard to figure out an apples-to-apples cost comparison pre- and post-reform, but his general sense is that his family didn’t save much, proportionally, on car insurance.

Andree said even though he periodically uses an agent to help with cost comparisons, he still feels like he “needs a Ph.D. in car insurance.”

“I’d say that (insurance) is a worry because my wife and I, we need it, and we really want our kids to have the best full coverage — and paying for that, it’s expensive, but you feel like you’ve got to do it because if you don’t have good coverage, it could go badly,” he said.

How PIP coverage works is complicated.

Essentially, there were three main ways the PIP overhaul was meant to save motorists money.

The private nonprofit corporation the Michigan Catastrophic Claims Association — which is governed by a board of directors composed of insurance executives — reimburses no-fault insurance companies for PIP medical claims paid above a set amount on policies of unlimited lifetime coverage. Currently, with reform, that amount is $600,000. That means that the insurance company pays the entire claim on policies providing unlimited lifetime coverage but is reimbursed by the MCCA for medical costs over $600,000.

The MCCA assesses all auto insurance companies operating in Michigan to cover catastrophic medical claims stemming from auto crashes. The reform legislation required the MCCA to cut that assessment from $220 per vehicle per year to $86.

Secondly, in November 2021, following reform, with a $5 billion surplus in the MCCA fund, Gov. Gretchen Whitmer announced the MCCA would refund $2.2 billion to eligible motorists in the form of $400 rebate checks, touting the cost controls included in the reform as one of the reasons for the surplus. But then, the MCCA in 2022 went from a surplus to a $3.7 billion deficit due to stock market losses, the Andary v. USAA decision that overturned retroactive payment cuts for survivor care, and the rebate checks. As of July 1

10 | CRAIN’S GRAND RAPIDS BUSINESS | July 24, 2023

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or their next policy renewal, motorists who have unlimited PIP will see their MCCA fee rise to $122, and drivers who choose any other PIP option, including opting out, will be charged $48 for “deficit recoupment,” negating a part of this second bucket of savings.

The other major PIP-related savings component baked into the overhaul was the reduction in PIP premiums. The law required insurance carriers to reduce the PIP portion of premiums until 2028 by a statewide average of 10% for those opting for unlimited PIP coverage, by an average of 20% for the $500,000 plans, 35% for the $250,000 plans and 45% for Med-

icaid recipients who qualify for $50,000 of PIP coverage.

After 2028, the idea was that increased competition from new insurers entering the market — largely due to the medical fee schedules controlling claims costs — would keep the PIP portion of rates naturally lower.

Anita Fox, director of the state regulatory agency the Michigan Department of Insurance and Financial Services, which enforces the auto no-fault law, reported in early 2023 that 61 new companies and affiliates entered the Michigan auto insurance market, 14 of them had rates approved, and 12 of them offered personal auto in-

surance following no-fault reform.

“We did see new interest by insurance companies in providing auto insurance in Michigan,” Fox told Crain’s.

An analysis of the list by CPAN, a coalition that advocates for policyholders, crash survivors and their medical care providers, found that only four of those companies are newly selling auto no-fault insurance in Michigan — Berkley Insurance Company, Branch Insurance Exchange, CURE (Citizens United Reciprocal Exchange) and Vault Reciprocal Exchange.

“That (competition) has not come to fruition,” said Doug Heller, director of insurance for the watchdog group the Consumer Federation of America. He also consults for CPAN. Eric Poe is president and CEO of CURE, which began selling nofault policies in Michigan in 2021.

“The reason why we came into the state is because we’re very familiar with no-fault, we only do states that have no-fault. … The problem with the system in Michigan was if you can’t predict behaviors, losses and statistics — nobody will do business in insurance when they don’t have predictability. For the first time in the history of Michigan since no-fault law was passed, we have predictability.”

CURE is on pace to insure 90,000 Michigan drivers by year’s end

and collect about $94 million in premiums.

He said about 94% of the customers CURE has written policies for have chosen a PIP coverage that’s less than unlimited. CURE’s Michigan customers have saved, on average, 43% over their previous plan. Poe said CURE is able to offer lower rates because, unlike other insurers here before the fee schedule was implemented, CURE is not burdened by lawsuits brought by catastrophic crash survivors under the old system.

But whether consumers have saved on auto insurance largely depends on who they are.

That’s according to Amanda Nothaft, director of data and evaluation on the Poverty Solutions team at the University of Michigan. In 2021, she and her colleague Patrick Cooney published a brief assessing reform.

After reviewing a 2021 report from Zebra, a cost comparison site, the pair determined between 2019 and 2020, estimated rates fell by 18% statewide on average.

That same cost savings percentage from Zebra is often touted by DIFS and the Insurance Alliance of Michigan.

But Nothaft recently looked more closely at Zebra’s methodology and concluded it was based on people opting for the minimum PIP coverage level, which could be

CRAIN’S

either $250,000 for those on private insurance or $50,000 for Medicaid recipients — meaning that the savings for those who kept unlimited PIP was not reported.

“So I’m not sure, in reality, how much savings people are seeing,” she said.

Nothaft and Cooney found that the Michiganders who were most cost-burdened prior to reform — residents of majority Black municipalities like Detroit and inner-ring suburbs — remain most affected.

The 2019 overhaul took aim at reforming discriminatory rate-setting practices by prohibiting the use of sex, marital status, homeownership, education level, ZIP code and credit score when determining rates — all factors highly correlated with race owing to historical and persistent discrimination in housing and labor markets.

However, it didn’t prohibit companies from grouping insurance risks by “territory,” and those territories aren’t subject to insurance board approval, Nothaft said. The companies also can continue using an insurance score, which has one’s credit score as a component.

As a result, Nothaft and Cooney found, rates remain as “highly correlated” with race and location.

Is change possible? A spokeswoman for Whitmer told Crain’s she “believes in exploring ideas,” though she did not share specifics.

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AUTO INSURANCE REFORM

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Can Michigan’s auto insurance law be improved?

Not everyone agrees that Michigan’s 2019 auto insurance law needs debugging — but its critics have a few ideas for fixing it. | By Rachel Watson

OUT OF THE MOUTHS OF CRITICS

DEFENDING REFORM Some of the original advocates for reform feel the law is working as intended.

“More than 200,000 new drivers purchased insurance in Michigan since the reforms took effect, and 83,000 of those hadn’t had insurance in over three years,” Detroit Mayor Mike Duggan said in a statement to Crain’s. “Tens of thousands of Detroiters have been able to afford insurance for the first time, and tens of thousands of others, particularly our senior citizens, have seen huge rate reductions because they used the new choices available.”

Erin McDonough, executive director of the Insurance Alliance of Michigan, pointed to a 2021 Zebra report that showed drivers saved 18% on car insurance in the first year of implementation.

She added the most recent data from an IAM survey of 90% of Michigan’s personal auto insurers

showed that, as of April 2023, over 23% of Michigan drivers — nearly 2 million people — chose less than unlimited PIP coverage. That number increased by more than 250,000 drivers (3%) over the prior year.

“Choice was a really important part of reform, so as people have moved into these different PIP levels across the state, it also becomes really important that you protect the value of those PIP levels … and make sure that we have a reasonable medical fee schedule to control medical costs,” she said.

Tim Hoste is president of CPAN, a coalition that advocates for insurance policyholders, crash survivors and the medical providers caring for them. He said he wants to see “fair and equitable” reimbursements for catastrophic care providers, the 56-hour-per-week cap on family-provided attendant care lifted, and an amendment to utilization review, the component that lets auto insurance companies scrutinize the level of provider care prescribed.

Doug Heller, the Los Angeles-based director of insurance for the watchdog group Consumer Federation of America, is an outspoken critic of the 2019 reform, having studied Michigan’s insurance system in comparison to other states since 2016.

He said he believes the greatest problem in the Michigan industry is a lack of appropriate scrutiny of premiums and the way they interact with the Michigan Catastrophic Claims Association. The MCCA generates the money by levying assessments on insurers.

Heller said he understands that a huge part of price setting is an insurer’s “rate need,” i.e., how much money the insurance company needs to bring in to cover claim payments.

The other component is how the insurance company divvies up the rates among various customers. He believes it makes sense for pricing to reward good behavior and penalize bad. But he thinks other nondriving

factors often outside a driver’s control, like credit history, homeowner status and what part of town you live in, should be de-emphasized.

He would recommend the law is revised so insurers can’t use anything like a credit score — including the so-called “insurance score” — in rate setting, and so there are strict rules around how companies draw the territories they use.

“What I would have much rather seen was the Legislature first question the insurance companies and then, once we got rid of all the excess fat from the insurance companies’ rating system, reviewed whether or not there remained additional challenges,” he said. “And they didn’t do that; they skipped over regulatory scrutiny and just went straight to diminishing consumer care.”

Amanda Nothaft, director of data and evaluation on the Poverty Solutions team at the University of Michigan, co-wrote a 2021 brief assessing no-fault reform and what could be done to bring costs down more. She pointed out that in states with lower PIP minimum require-

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ments, health insurance becomes the primary payer after PIP limits are reached.

“Michigan’s new law allows auto insurers to offer a managed care option, where auto insurers contract with health care providers to cover the cost of care and medical deductibles for drivers.

However, insurers are not required to offer this option,” she wrote in the brief. “Ensuring consumers have the choice of selecting a managed care option or a deductible on medical expenses could help further reduce rates.”

Nothaft told Crain’s that she doesn’t think shifting more of the responsibility for coverage to health insurers would increase health premiums because crashes are a small portion of a health system’s overall cost liabilities.

She said the medical fee schedule was a good idea in theory, but the rate cuts for certain services subject to lower reimbursement rates may have been too dramatic.

LEADING WHAT’S NEXT Grand Valley State University congratulates Jesse Bernal, chief of staff to the president and vice president for inclusion and equity, on being named one of the Crain’s Grand Rapids Business Notable Leaders in DEI. His leadership and commitment to creating an inclusive and equitable community have kept the university at the forefront of diversity, equity, and inclusion as we work to eliminate disparities and obstacles for student success and help everyone reach higher together.

gvsu.edu

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How costs, fees affect auto premiums

By Rachel Watson

Insurance rates are determined by a number of factors, and many of those factors are numbers. Or, more specifically, prices.

Primary among them:

Bodily injury liability Bodily injury liability insurance covers passengers in Michigan so that if you are at fault in causing a collision and your passengers are injured, your auto insurance will pay up to your policy limit for pain and suffering compensation, excess medical benefits and lost wages owed after those injuries.

Erin McDonough, executive director of the Insurance Alliance of Michigan, said she isn’t sure why legislators raised the bodily injury limits to a minimum of $50,000, but the threshold is now the highest in the nation.

much for procedures provided for injured drivers versus the same exact procedure being billed to other forms of insurance. … (It was) a broken system that incentivized overcharging and encouraged medically unnecessary procedures being pushed on patients.”

DIFS told Crain’s July 7 that rate filings from personal auto insurance insurers were reviewed by outside actuaries and showed that about $187 million in savings were passed on to consumers.

Heller said according to data

from the National Association of Insurance Commissioners, insurers paid $6.7 billion in claims from 2020 to 2022, down from $7.1 billion between 2016 and 2019, so reform does appear to have reduced insurers’ claims cost.

But it shows Michiganders paid $9.28 billion on auto insurance from 2020 to 2022, up from $9.049 billion from 2016 to 2019.

“I think it’s kind of a financial wash, because partly, the problem is that it didn’t save money in the right way,” Heller said.

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AUTO INSURANCE REFORM

Personal Injury Protection The reform in 2019 ended the mandatory requirement that every Michigan driver purchase unlimited personal injury protection or PIP medical coverage. The PIP portion of total monthly premiums pays for auto collision-related medical expenses, attendant care and lost wages.

“We also know that accidents have increased, and the severity of those accidents have increased,” McDonough said. “So you’re seeing all of these things kind of come to fruition, but it doesn’t change the fact that we know that the reforms were in order to (control) that PIP portion of your auto insurance.”

Consumer advocate Doug Heller said there’s more than meets the eye to PIP savings: firstly, because costs hit an all-time high in 2019, so any savings motorists saw on the PIP portion was really just bringing the cost down to an average year.

Secondly, the average 10% to 45% PIP premium reductions included the reduction in the MCCA fee and were based on statewide averages rather than the average in each individual market.

“The auto insurance market in Michigan has always been deeply bifurcated; it’s basically, Detroit and some other communities in southeastern Michigan are in one insurance market, and the rest of the state is another insurance market,” Heller said. “ ... So, yes, you got these average reductions in PIP. (But it made) … very little difference for the people most suffering under high insurance.”

Sept. 18, 2023 3:30-6:30pm GLC at 20 Monroe Live

Medical fee schedule Proponents of reform said the medical fee schedule and reimbursement controls were intended to lower costs for insurers, who would pass savings to consumers.

“Before reform, our no-fault system caused our auto insurance premiums to skyrocket,” McDonough said. “Hospitals could charge three to even four times as July 24, 2023 | CRAIN’S GRAND RAPIDS BUSINESS | 13

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Survivors plead for change after care cutbacks

By Rachel Watson

Survivors of catastrophic car crashes want the state of Michigan to know that every day the “messy” no-fault auto insurance reform remains intact is another day their health, quality of life and financial stability ebbs away.

The 2019 bipartisan overhaul of Michigan’s 1973 no-fault auto insurance law ended the mandatory requirement that every motorist purchase unlimited personal injury protection coverage for injuries and required insurance carriers to reduce PIP premiums by an average of 10% to 45%, depending on the plan, until 2028. The goal was to save money for drivers in what has been the most expensive state in the nation for auto insurance.

Along with targeting PIP cost savings, the law imposed the first-ever fee schedule that capped the rates hospitals, doctors and rehabilitation clinics that treat injured drivers could be reimbursed for to around double what Medicare pays — 190% to 230% as of this year. The fee schedule was meant to rein in hospitals’ overcharging of auto insurers.

Starting in mid-2021, the law capped reimbursements to 55% of what home care businesses and other providers were charging for post-acute services not covered by Medicare in January 2019. The caps fell to 54% in July 2022 and dropped to 52.5% this summer.

The law also limited family-pro-

Todd Neinhouse, founder of the post-physical therapy company Agevix in Traverse City, assists traumatic brain injury survivor Brittney Ruckle, center, with exercise therapy alongside her mom, Kris Ruckle-Mahon. | COURTESY KRIS RUCKLE-MAHON

vided attendant care reimbursement to 56 hours a week regardless of the number of hours.

The legislation swiftly came under criticism because it slashed reimbursements for post-acute services to those hurt in crashes before the law was enacted.

In August 2022, the State Court of Appeals ruled in Andary v.

USAA that the Legislature did not clearly demonstrate an intent for the changes to apply retroactively and, even if it did, the revisions

“substantially” impaired no-fault insurance contracts — violating the Michigan Constitution’s contracts clause.

The Michigan Supreme Court heard insurers’ appeal of the Andary ruling in March, but it is unclear when the court will rule.

But survivors living with catastrophic injuries and their families say the effects on them have been devastating.

They are pleading for legislators to amend the law to ensure pro-

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tections for crash survivors.

Detroit native Brian Woodward, 64, was in a catastrophic crash in 1983. He was thrown from the vehicle, broke his neck and became a quadriplegic.

Prior to no-fault reform, his insurance covered 24/7 care from an agency, which allowed him to work as a contractor for Ford Motor Co., live independently and experience “the best life possible.”

Following the implementation of the fee schedule and slashing of reimbursement rates for care providers, Woodward lost his 24/7 caregiver because the agency couldn’t sustain the pay cut.

He lost his job, was forced out of his home and has lived in three different residential rehabilitation facilities in the past two years.

Meanwhile, Woodward is still paying to keep his home in Detroit out of his Social Security income and 401(k), in the hopes that he’ll one day be able to return.

“It devastated and destroyed my entire life,” he said in a recent video discussing the changes. “I had many, many instances of hospitalization, with life-threatening infections, medication withdrawals, constant degradation of physical, emotional, mental and spiritual wellness. I feel like I’ve been ripped out of my home and put in jail, even though I had committed no crime, or had a day in court.”

Woodward told Crain’s that, due to the lower reimbursement rates, his residential facility is operating with a “skeleton crew.”

“The response time at home was immediate, because I always had someone with me. But the response time here, and at the other places as well, is definitely not immediate and at times has been over an hour before somebody actually responds. That’s the fear that we live with all the time, particularly if I’m choking on something,” he said.

He used to have about two hours a day of physical therapy, and now gets about three hours a week.

His doctors also had to surgically implant an indwelling catheter because the carers can’t take him to the bathroom as often as he needs. He’s got body sores from not being properly placed in his wheelchair and not getting turned enough, and he’s gained about 30 pounds due to the food at the facility and the lack of activity.

Woodward’s body has been under such stress that doctors are preparing him for a pacemaker to keep his heart from going into atrial fibrillation.

He no longer has a driver to take him to his friends and church community.

“Almost all my freedoms have been taken away,” he said.

“People can help by … writing to their legislators and strongly suggesting that this needs to change,” he said. “Please don’t let us be thrown away.”

Kris Ruckle-Mahon of Traverse City is caregiver to her daughter,

Brittney Ruckle, who was in a crash in 2007 at age 9 that resulted in a traumatic brain injury.

During the first 11 years post-injury, it was hard trying to maintain care — the family went through 167 caregivers at seven local agencies due to staffing turnover and low reimbursement rates — but with a lot of advocacy on Ruckle-Mahon’s part, they got by.

In 2018, Ruckle-Mahon quit her job to take on the full-time caregiver role because the agencies couldn’t find a full-time worker to replace a retiring aide.

After she filed suit in 2018, Ruckle-Mahon said Auto-Owners Insurance offered her an attendant care agreement as an alternative to the 45% cut in reimbursement rate and 56-hour cap to take effect as part of no-fault reform on July 1, 2021. She can’t discuss the rate the company pays.

“Let’s just say it’s less than I made in high school in 1982,” she said.

“It’s pathetic, quite honestly.”

Ruckle-Mahon said the haggling doesn’t solve the most basic impact of no-fault reform for pre2019 crash survivors — the gutting of the home health care system.

The Brain Injury Association of Michigan commissioned the Michigan Public Health Institute to conduct phase 1 and phase 2 studies based off surveys issued in fall 2021 and spring 2022 showing the impacts of reform on care. It found the implementation of fee changes contributed to between 24 and 31 total closures of agencies that provide care and services to survivors, with another 14 that said they expected to close in 2023. The second study found that out of 19,994 employees from the 154 organizations that reported employment data, 4,082 (29%) jobs were eliminated since July 2021. The 144 organizations that had patient count data reported serving a total of 15,596 patients before July 2021 and 8,739 as of spring 2022, with a total of 6,857 discharges and an average of 42% reduction in their capacity to serve patients.

Although she still has access to periodic exercise therapy and aqua therapy, Brittney Ruckle lost access to music therapy, regular massage therapy, occupational therapy and physical therapy.

“Brittney’s therapies basically became nonexistent,” Ruckle-Mahon said. “… There’s less providers.

There’s less therapists that are willing to work with the insurance companies because they don’t pay in a timely fashion, so in the end, Brittney loses her therapies and her care that was prescribed that she needs to continue the best life she can live.”

Ruckle-Mahon said her hope is that the Andary ruling is upheld.

But for those who are affected in the future, she hopes the Legislature will rewrite the “messy” law as it stands, removing phrases like “reasonable,” “necessary,” “customary” and “charges up to,” which insurers currently can interpret as they want.

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No-fault reform has worked to save Michiganders money

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reforms, auto insurance efore the Legislacompanies have been ture and Gov. working to ensure savGretchen Whitmer ings are passed onto drivtook action in 2019, Michers and medically necesigan’s broken auto nosary care is covered. The fault system caused auto data shows reforms work. insurance premiums to ◗ A 2023 Michigan Deskyrocket to the nation’s highest, impacting the partment of Insurance state’s 7.2 million drivers. Erin and Financial Services The old system was a cash McDonough report shows reforms cow for medical providers is the executive have provided more than and a cash drain for Mich- director of the $5 billion in savings to igan drivers, with few lim- Insurance Michigan drivers. ◗ More than 202,000 units on what could be Alliance of charged and how much Michigan. insured drivers have purcould be prescribed. chased car insurance Take a look at the Citizens Re- since the reforms, 83,000 of which search Council report and a De- didn’t have insurance for three troit Free Press investigative series years or more. for examples, like a medical pro- ◗ Reforms reduce incentives to vider charging $500 for an MRI push needless and harmful medithrough Medicare versus $5,000 cal procedures for profit. A new when billed to auto insurance. system to resolve care disputes, Every system, from private called utilization review, uses health insurance to workers com- third-party, independent experts pensation to Medicare and Medic- coordinated through DIFS. aid, has cost controls. They aren’t ◗ Safeguards are in place including new or unique. Auto insurance a DIFS-created rapid response hojust never had them. tline (833-ASK-DIFS) to assist with Since bipartisan auto no-fault individual cases where people

need help with care. ◗ Nearly 2 million people are exercising their right to choose personal injury protection or PIP coverages other than unlimited. Prior to reforms, all Michigan drivers were forced to purchase unlimited, lifetime medical benefits with their auto insurance, regardless of whether those benefits fit their budget or their family’s needs.

With drivers choosing different levels of PIP coverage, it’s important to protect the fee schedule so consumers derive the maximum value.

However, the reforms continue to be targeted by those who want to engage in overcharging and over prescribing again. Last fall, a Court of Appeals decision removed the ability to use portions of the medical fee schedule and we saw the impact in the MCCA (Michigan Catastrophic Claims Association) fees increasing. The Supreme Court will soon determine whether aspects of the bipartisan reforms are allowed to continue reining in rampant overcharging, cracking down on fraud

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COMMENTARY | AUTO INSURANCE REFORM

and providing savings to millions of Michigan drivers.

In addition to the Supreme Court, legislation eroding utilization review and drastically altering the medical fee schedule continue to be introduced in the Michigan Legislature. Legislation to benefit plaintiff attorneys — similar to laws that made Florida the most expensive state in the nation for auto insurance — waits in the wings.

Nationally, inflation is driving up the cost of auto repairs, replacement vehicles and rental cars, which is impacting other parts of auto policies. While state leaders can’t control inflation, controlling medical costs in a reasonable manner can be done.

The expectation cannot be that tools controlling costs can be stripped away and 7.2 million drivers still save money. The amount medical providers charge for services and prescribe for care, above and beyond what’s medically necessary, can be controlled and is proven to reduce the cost of auto insurance. People can and are still receiving quality care under bipartisan reforms.

Following the Supreme Court decision, pressure will be high to return to the old, broken system.

We encourage the Michigan Legislature to be thoughtful and consumer focused. A system with proven, effective cost controls works and needs long-term stability to save Michigan drivers money.

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AUTO INSURANCE REFORM | COMMENTARY

More reforms needed to save drivers money I

stantial coverage protecn 2019, Michigan lawtion which comes with its makers pushed through own extreme risks). a historic overhaul of In spite of all the turthis state’s auto no-fault inmoil that the new no-fault surance system. The stated law has brought, Michirationale behind this was gan drivers are still payto save Michigan drivers ing among the highest money on their car insurrates in the country. We ance premiums. took away the things that Unfortunately, lawmak- Steven made Michigan’s auto ers went looking for solu- Gursten is an no-fault system the very tions in all the wrong plac- attorney and best in the nation, and we es. The results have been owner of disappointing. By hurry- Michigan Auto got very little in return.

If (and when) lawing complex legislation Law. makers are ever truly sethrough the Legislature in time for a photo opportunity at the rious about generating meaningMackinac Policy Conference in the ful and long-term savings for summer of 2019, lawmakers creat- drivers, all they need to do is died a system that has already merci- rect their attention to where they lessly denied and continues to should have begun in 2019 to deny medical care and treatment make Michigan’s auto insurance to thousands of our most cata- system affordable for everyone.

They need to create a level playstrophically injured crash victims, jeopardized the financial future of ing field and get to work on providthe Michigan Catastrophic Claims ing the same regulatory powers to fund and driven essential medical the Michigan insurance commiscare providers out of business and sioner to prohibit auto insurers hundreds of skilled medical pro- from charging “excessive” insurance premium rates, just as insurviders out of the state.

The goal of all of this tumult was ance commissioners have the powsavings for Michigan drivers, but er to do in almost all other states.

Lawmakers need to empower these savings have been negligible at best (and typically only for those Michigan’s insurance commisdrivers who are willing to forgo sub- sioner to regulate excessive profit

margins for the auto insurance companies that do business with the 9 million registered vehicle owners who are legally required to buy their product. This was an oversight of seismic proportions.

Finally, instead of beating up on innocent crash victims by stripping them of personal injury protection benefits they need to live, survive and heal, lawmakers should be the champions they need to protect their rights and help them to stand up to the mistreatment and abuse they routinely suffer in a virtually completely unregulated auto insurance industry in Michigan.

A good place to start today is with lawmakers stepping up in support of the Policyholder Bill of Rights in Senate Bill 329 and House Bill 4681.

This legislation still will not protect consumers and drivers from insurance company bad faith, which often devastates and destroys lives, but at least it will require insurers to “exercise good faith and fair dealing” with auto crash victims’ claims.

It is a good start to provide some modest protections for small businesses, consumers and small hospitals, as well as for crash victims, all of whom can be too easily devastated by unchecked insurance company greed.

Lawmakers say they are open to continued reform efforts, but have not specified many changes. | GETTY IMAGES

A very specific change is needed to reform

F

dictability and fairness. amilies grieving The council has dethe unnecessary veloped a fee schedule and cruel loss of that accomplishes these their loved one. The ends with a pay struclives of thousands of ture that will ensure inpeople living with dissurers know what they abilities and life-changmust pay and providers ing injuries turned upknow what they will get side down. People paid. The solution uses a displaced from their Tom Judd is disciplined methodolohome and discharged by the executive gy and statistical process care providers they have director of the to replace the baseless trusted for decades. Oth- Michigan and arbitrary 45% reimers finding it difficult to Brain Injury bursement cap to reaimpossible to access Provider sonable rates that equate necessary rehabilitation Council. services to the Medicare and care following a car crash. Thousands of health care multiplier written into the reform workers losing their jobs because law. The outcome is rates in line their employers had to signifi- with the intent of the law and cantly reduce resources or close with other funding sources that pay for these specialized services. operations completely.

These are the unsparing im- In addition, this fee schedule for pacts of Michigan’s no-fault “re- long-term cost factors brings form” that implemented a draco- down costs by reducing unnecesnian fee cap system cutting sary delays and litigation. Most reimbursement by nearly 50% importantly, it allows providers and imposing an arbitrary limit to get back to fulfilling their mison the number of hours family sion of caring for all crash survimembers can provide care to vors, while guaranteeing consumers get the benefits they paid their loved one.

Those of us who provide care to for through their auto insurance survivors of catastrophic auto ac- contracts.

There is nothing comcidents knew the destruction these elements of the 2019 law mon-sense about the fee cap syswould cause and have advocated tem put in place with the 2019 for a solution to end this crisis for law. Any narrative about the imover four years now; unfortunate- pact of the reforms that doesn’t ly, the Michigan Legislature has include the devastation caused is failed to act. There have been sev- dishonest and incomplete. When eral bills introduced over multi- the Legislature returns after Laple legislative sessions, but none bor Day, their top priority should were given even a committee be to finally respond to car crash hearing. We were hopeful the victims, their families, nationalnew majority would deliver the and state-level disability advobill the governor has claimed she cates, and care providers who would like to see, but we are now only want to be able to serve.

The solution of a fair, reasonentering another summer with continued inaction from our leg- able and sustainable fee schedule has been created — it needs to be islators.

The Michigan Brain Injury Pro- enacted and implemented with vider Council continues to be immediate effect. Any decision committed to providing the Leg- by the Michigan Supreme Court islature with a sustainable solu- in the Andary case will still retion that controls costs while en- quire legislative action. It is the suring car crash victims have responsibility of the Legislature access to early rehabilitation and to enact a holistic correction to necessary long-term care. The end the crisis in care for all peocurrent system creates instability ple injured in a car crash — now and chaos. It fails to meet the in- and in the future. The fate of tent of the law. A true fee sched- thousands of Michiganders deule provides consistency, pre- pends on it.

16 | CRAIN’S GRAND RAPIDS BUSINESS | July 24, 2023

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INSIDE

SPONSORED CONTENT

4. HOW IS AI CHANGING THE FACTORY FLOOR? AI technology is poised to change manufacturing, but what do West Michigan experts and manufacturing leaders think of the new technology?

5. PRODUCT SPOTLIGHT

A look at one of VaporTech’s coating systems.

6. INVENTORY MANAGEMENT IN MANUFACTURING COMPANIES

Properly managing inventory is one of the greatest challenges facing manufacturers in Michigan right now.

7. MEET JAKE HALL

Jake, the Manufacturing Millennial, will be bringing his popular podcast to the Expo halls, talking about the latest technology in automation and manufacturing.

8. i4.0 ACCELERATOR EVENT

The annual event includes pitch competitions, panel discussions and fireside chats. Check out the agenda!

8. SPOTLIGHT ON MOTION

This longtime supplier provides a wide range of industrial products and services to support industry in North America.

10. MMTC SMART MANUFACTURING ZONE

The Michigan Manufacturing Technology Center (The Center) invites you to the Smart Manufacturing Zone to meet with their team and get hands-on with technology that can help your business.

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HEY AI, WRITE ME A STORY ABOUT HOW AI IS CHANGING THE FACTORY FLOOR …

M

y entire life has been surrounded by automation. My parents started Industrial Control in 1975, and since then the changes in manufacturing have been amazing and profound.

Now, the latest development in technology, AI, or artificial intelligence, is about to change your life and industrialized processes again and fast!

One Sunday afternoon, I decided to have some fun and ask AI to write a story about how it would change the factory.

MARK ERMATINGER Industrial Control / MCE Automation

The AI system wrote a story about robots and humans working side by side, and how “the factory floor became a harmonious symphony of machines working at their peak efficiency, reducing downtime and increasing productivity.” Sometimes, the

AI bot even used words like it was real, like this statement: “The factory floor became a living, breathing network of information.” Nonetheless, I was amazed at how it came up with a story in 30 seconds. Although I have my own ideas of what automation will revolutionize the factory, you can see the actual story that the AI system wrote for me on that Sunday at www.

Industrialcontrol/AI. Not to be outdone by AI, I started to gather my thoughts and had this competitive sense to write my own story, but unlike AI, I decided to call some humans, friends and experts in the industry, and this is what I learned.

allows us to inspect and move our assembly robots as the trends change in the incoming materials. The AI helps us learn these parts.”

The end result, he said, is less waste and more efficiency.

LOOKING INTO THE FUTURE Steven Lopez, Business Development Specialist with The Center West, is West Michigan’s lead industry 4.0 assessor, where he identifies technologies that help improve operational performance.

He said that as exciting as AI can be, manufacturers need to also be cautious about several

something that has to be given up and has to change, and AI is certainly going to go through with that.” However, he said the benefits could be great. “I see it helping us get to the market with a product that is more agile and efficient.”

Blake said engineers used AI to assist with repetitive aspects of applying software from one robot doing a project to seven more robots doing similar but not the same tasks.

“It’s so cool,” he said. “You still had to do something to it and it wasn’t perfect by any means. By asking Chat GPT to take it and iterate it seven more times, it was able to do some of that.”

IS AI TAKING OVER MANUFACTURING?

“Do the research on what ‘training’

“We’re not at that point in our evolution, but I do see us seeing more uses for it,” said Rick Blake, President and Founder of Edgewater Automation.

is required to provide usable

For his company, AI uses have been mainly about productivity improvements with incoming materials, and seeing if the “machine can learn the things its doing itself to deal with variations.”

For example, Blake’s team has used vision in part variation and have used AI to learn the variation to help process small parts in high speed. “It goes at an extremely fast speed, half a second apiece,” he said. “At those speeds, you can’t afford bad parts.”

Blake’s company is currently using an AI deep learning software on using Cognex vision inspection on an assesmbly machine. This is using (CIS Contact Image Sensors) to construct 2D images as the part passes under the scanners. “This

models for the AI tools.”

-Scot Lindemann, CEO of Mission Design and Automation

factors. “First and foremost is data privacy and security,” he said. “Safeguarding sensitive information is crucial, and robust cybersecurity measures must be in place to prevent breaches and unauthorized access.

Ethical considerations are also important, as AI systems should be designed and used ethically, addressing potential biases and ensuring decisions align with ethical and legal standards.”

There’s always new technology coming into the manufacturing space, and not all of the changes are comfortable or easy to adjust to, Blake said.

Manufacturers will have to adjust to AI like anything else.

“With every new step there is

AI EVOLUTION Scot Lindemann, CEO of Mission Design and Automation, said that manufacturers can see benefits for AI on the horizon, including making ease of use for setup or changing conditions easier and more robust.

AI technology can help keep “the manufacturing operations running, and more diagnostics available for diagnosing potential problems,” Lindemann said. “We are all using ‘simple AI’ in our lives now — the ‘hard AI’ is what is evolving every day and becoming useful in new ways.”

Lindemann said manufacturers really need to prepare their

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SPONSORED CONTENT staff before taking on new technology like AI, making sure they are ready for the tasks needed for implementation.

“Do the research on what ‘training’ is required to provide usable models for the AI tools,” he cautioned. “Sometimes the AI will need a few hundred good parts and bad parts to ‘learn’ the required tasks. This can take time and planning to accomplish for a robust

His engineers are keeping up on what’s going in the industry, and applying what they feel works for their systems. “I don’t see Edgewater being an AI tech innovator, but I see us being excited by ways we can use it and apply it, particularly driven by our customers’ needs.”

Steven of The Right Place said what excites him most about AI applications in the future is the potential for transformative

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“I see it helping us get to the market with a product that is more agile and efficient.”

-Rick Blake, President and Founder of Edgewater Automation AI implementation. Another possible hurdle is having the ability to validate what the AI tool is doing exactly — this is necessary in certain industries and medical or safety products.”

HOW WILL MANUFACTURERS EMBRACE AI? Lindemann said he’s excited for what’s ahead, and he’s looking forward to seeing “solutions that were very difficult and can now, or in the near future, become more widely implemented.”

Blake said he is approaching new technology with cautious optimism.“We like to be a quick second, not necessarily a first,” he explained.

advancements, particularly in the manufacturing industry.

“AI can revolutionize manufacturing processes, leading to increased productivity, enhanced quality control, optimized supply chain management, and improved safety,” Lopez said.

“It can enable predictive maintenance, process optimization, and innovative product design. The integration of AI in manufacturing holds the promise of boosting efficiency, reducing costs, and driving innovation.”

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How will AI change the factory floor? Stay tuned because this topic isn’t going anywhere!

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THE VITAL ROLE OF INVENTORY MANAGEMENT AND VENDOR MANAGED INVENTORY SYSTEMS IN MANUFACTURING COMPANIES

O

ne of the greatest challenges facing manufacturers in Michigan right now is properly managing inventory to keep costs down and production running smoothly. Inventory management and the implementation of Vendor Managed Inventory (VMI) systems are one essential solution for manufacturing companies aiming to optimize their operations, reduce costs, and enhance customer satisfaction. By effectively managing inventory levels, collaborating closely with suppliers, and leveraging realtime data, manufacturers can streamline their supply chains, improve production efficiency, and respond quickly to changes in demand.

Embracing these practices is vital for the long-term success and competitiveness of manufacturing companies in today’s dynamic business landscape. We sat down with Paul Hendricks, owner, and Scott Kudlack, sales manager, at Creston Industrial Sales, to discuss the value and importance of vendor managed inventory systems for today’s manufacturers in Michigan.

“VMI is a real benefit for our customers, for a number of reasons,” says Hendricks. “First, it’s automating a process in their facility that many times before was done manually. On the logistical side of things, you can see labor reductions, because you’re automating the process with a piece of technology.

Secondly, you also get the visibility into what’s happening

within your organization.” VMIs help manufacturers “get a real sense of what it’s costing to make a part.”

Another benefit to having a relationship with a single vendor to manage inventory, Hendricks says, is that “with less vendors and less purchase orders, you have more efficiency in your operations.”

“What matters” at the end of the day, says Hendricks, “is how do we get our manufacturers more productive?”

Creston’s longtime sales manager, Scott Kudlack, agrees that productivity and efficiency are major benefits from VMIs. “In our current economic climate within manufacturing, it is very difficult to manage supply chain challenges effectively,” he says.

“By managing inventory with the assistance of a distributor through a vendor managed system, the onus of supply chain management is moved from the manufacturer to the distributor, making the supply chain easier to manage for a manufacturing customer.”

How do VMIs help improve manufacturing efficiency?

“With a proper VMI system or tool management system, the customer should always have the product they need at their facility to make sure that they are always operating at capacity,” says Kudlack, “which allows them to get more products out the door, makes them stay on time with their production schedule, and allows them greater flexibility in their production and production planning.”

And that reduces costs as well, right?

Says Kudlack, “That will absolutely reduce some of their cost. With manufacturing, if you’re properly managing your inventory from a tooling standpoint, you don’t have shutdowns, which is going to help get more product out the door and make you more profitable. If you’re properly managing that inventory, all those concerns go away, and you’re a much more costeffective business.”

Hendricks agrees. “We can offer products at more competitive pricing, because we’re driving labor costs” down, he says, “and automating this reordering process.” Manufacturers can then “go focus on tackling their larger issues within their facilities.”

How does using a VMI help improve customer service for the manufacturers?

“If they have the tools they need, they can meet their customers’ expectations, without missed shipments and without delays,” says Kudlack. “The customer that the manufacturer is selling to will be much happier and more likely to get that repeat business.”

Another benefit he finds is that properly managed inventory through a VMI “helps them plan better for those jobs that are coming in to make sure they have everything they need to produce on time before that job is going into the machine.”

The pandemic and shutdowns really shed light on how fragile supply chains are. How does using a VMI help mitigate that?

“We spent a lot of time during the pandemic finding secondary, or sometimes a third or fourth vendor that has a similar product that will work for that customer in that application, and be able to get them that product with hopefully a little bit of prep time.” A VMI, he says, “creates the predictability within the supply chain so they can see exactly what they have” and plan ahead.

“The resiliency in the supply chain goes back to the availability of inventory for the customer at their fingertips,” he says. “The constant reporting and data that they can get from these systems…really turns it into a partnership” between vendor and manufacturer.

How does this work to reduce inventory holding costs?

“After you get a few months of really good data,” says Kudlack, “you can then do predictive analysis and say, ‘Okay, six months from now, I’m only going to need this much of this tool to run this job, so I can reduce my inventory.’”

For Creston Industrial Sales, it’s all about staying lean on inventory — but having the data to be nimble. “In an ideal situation,” says Kudlack, “I only want the manufacturer to have a month’s worth of inventory at their facility.

If you have a month there, and then I have a month at my facility we can build out an effective supply chain through a lot of communication, a lot of partnership. That customer’s money isn’t tied up in inventory.”

Can you give us a concrete example of a successful, datadriven VMI partnership?

“They were having some spikes in usage on some of their tools,” Kudlack says. “I’ve been going through that data to find the items that had spikes in use over the past few days. Then we can

dive in deeper and say, ‘okay, it was only this one person that maybe had a usage spike so that person maybe needs more training, or they’re not running a tool right, or there’s some issue in the way they’re applying it.’”

“That’s where you find additional cost savings: in that data.”

What does the future of VMI look like for manufacturers in Michigan and elsewhere?

“As a manufacturer, 20 years ago, it was kind of cookie cutter.

It’s come so far as a technology.

The flexibility, the technology and the offerings that can be applied to a vast variety of different manufacturing environments is really there.

Some of the manufacturers out there maybe aren’t aware of the flexibility, or the way that the technology can be adapted to help them in their specific needs.”

Both Kudlack and Hendricks see dynamic changes in the manufacturing landscape, with supply chain and labor shortages continuing to affect efficiency and productivity. Still, they’re both confident that with a properly managed VMI and a solid vendor-manufacturer relationship, data-driven inventory management will put the right tools in the right hands at the exact right time for manufacturers to succeed in a changing world.

“With a proper VMI system or tool management system, the customer should always have the product they need at their facility to make sure that they are always operating at capacity.”

- Scott Kudlack, sales manager, Creston Industrial Sales

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SPONSORED CONTENT multiple accounts, designing sales strategies, and creating and accomplishing project goals.

He has proficiency in creating new business opportunities with existing and new accounts by leveraging key strengths and maintaining customer relationships.

MEET JAKE HALL: The Manufacturing Millennial

On his popular podcast, The Manufacturing Millennial, Jake Hall talks about the latest technology in the automation and manufacturing while making it engaging for all audiences. This year, Jake will be recording his podcast live from the Advanced Manufacturing Expo.

Jake graduated from Grand Valley State University with his bachelor’s in Product Design and Manufacturing Engineering and a minor in Biomedical Engineering.

He worked during college in the automation, furniture and product design industries as well as starting a company after receiving investments and winning business and pitch competitions.

Jake is an experienced sales professional with extensive knowledge in building lasting business relationships across

Industrial Control, the founder of the Advanced Manufacturing Expo, hired Jake Hall in 2003 as a Sales Engineer in West Michigan. After almost seven years of providing manufacturers some of the highest technology solutions, such as 2D & 3D machine vision, Laser Markers, and Robotics, Jake started making videos to flatten the curve during the beginning stages of Covid-19. He wrote and produced over 31 videos himself at home showcasing some of the coolest manufacturing products around.

You can still find these videos on YouTube @IndustrialControl. Jake eventually created a brand as the Manufacturing Millennial and currently works for himself as an internet influencer and speaker.

At Industrial Control, we are proud to have the best engineers in the industry and see them become entrepreneurs!

— Mark Ermatinger, Founder Advanced Manufacturing Expo

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T MOTION: SUPPLYING UNIQUE SOLUTIONS ACROSS NORTH AMERICA

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he i4.0 Accelerator’s annual Corporate Partner event will take place during the Advanced Manufacturing Expo! Don’t miss the pitch competitions, panel discussions, and fireside chats. Connect with industry leaders and gain insights on the newest tech impacting manufacturing.

Don’t miss this chance to be part of the conversation as i4.0 continues to advance!

the leading manufacturers discussing their i4.0 technology adoption roadmaps, where are the biggest opportunities, what are the organizational challenges when implementing Industry 4.0 technologies to improve efficiency, reduce costs and enhance products.

Moderator: Scott Phillips - i40 Accelerator. Panelists: Matt Myrand – Forvia; Sanjay Kumar – Siemens; Steve Jones - Steelcase

WEDNESDAY 10:30-11:00 A.M. EVENT KICKOFF

2:00-2:45 P.M. PITCH COMPETITION 2

Learn about services and programs to assist Michigan Manufacturers Presenters: Dan Radomski Centrepolis Accelerator; Brandon Marken - Lean Rocket Lab; Scott Phillips - Industry 4.0 Accelerator 11:00-11:45 A.M. PANEL: INDUSTRIAL DECARBONIZATION Learn about industrial decarbonization related to regulations, innovative technologies and strategies being used to achieve sustainability goals while maintaining competitiveness in the industry.

Presenters: Dan Radomski Centrepolis Accelerator; Francis Vatakencherry – Siemens; Tyler Roberts - Borg Warner 12:00-12:45 P.M. PITCH COMPETITION 1 Come see state of the art solutions to improve manufacturing efficiency Moderator: Brandon Marken.

Teams: DeepHow; Lincode; Andonix; LaunchPad. Judges: Matt Myrand (Forvia); Natalie Chmiko (MEDC); Dan Drouin (Lear Corporation) 1:00-1:45 P.M. PANEL: INDUSTRY 4.0 ADOPTION STRATEGIES Learn about Industry 4.0 Adoption strategies from some of

Come see state of the art solutions to improve manufacturing efficiency.

Moderator: Brandon Marken.

Teams: Squint; DeepView; Wheel.

Me; PicoMES; Judges Matt Myrand (Forvia); Natalie Chmiko (MEDC); Dan Drouin (Lear Corporation) 3:00-4:00 P.M. FIRESIDE CHAT -DRIVING INDUSTRY 4.0 ADOPTION IN MICHIGAN Learn how Michigan economic development organizations are coordinating programs, resources and services to support Michigan Manufacturers implementing Industry 4.0 technology to improve global competitiveness.

Moderator: Dan Radomski Centrepolis Accelerator Panelists: Natalie Chmiko – MEDC; Ingrid Tighe – MMTC; Tom Kelly - Automation Alley; Rob Llanes - The Right Place 4:00-6:00 P.M. MATCHMAKING RECEPTION THURSDAY 9-9:45 A.M. PANEL: THE FUTURE OF GENERATIVE AI IN MANUFACTURING Join industry experts for a panel discussion on the cutting-edge technology of generative AI and its limitless possibilities to revolutionize the manufacturing industry.

YOUR PARTNER FOR COSTSAVING SOLUTIONS Whatever your application, Motion has the products and services to keep your industrial site in motion.

Partners. The best part of all.

Motion is a wholly owned subsidiary of Genuine Parts Company (NYSE: GPC). Visit our website at www.Motion.com.

S8 | ADVANCED MANUFACTURING EXPO: AUGUST 9-10, 2023

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SPONSORED CONTENT Moderator: Brandon Marken Lean Rocket Lab. Panelists: David Yanez – Andonix; Muriel Clauson – Anthill; Nadir Khoja - ATS Global 10-10:45 A.M. PITCH COMPETITION 3 Come see state of the art solutions to improve manufacturing efficiency.

Moderator: Voice of God (Brandon Marken). Teams: CrossBraining; Losant; Gig and Take; Detect-It; Judges; Matt Myrand; Natalie Chmiko; Paul D’amato; David Bloom

12-12:45 P.M.- PITCH COMPETITION 4 Come see state of the art solutions to improve manufacturing efficiency Moderator: Voice of God (Brandon Marken). Teams: PPAP Manager; Anthill; InXpect; DT4o.

Judges: Matt Myrand – Forvia; Natalie Chmiko – MEDC; Paul D’amato - Michigan Capital Network; David Bloom Sponsored by:

11-11:45 A.M. IT/OT SYSTEMS INTEGRATION - WHO TO TRUST IN A RAPIDLY EVOLVING LANDSCAPE? Explore alternative approaches to system integration for manufacturers in light of modern low/no-code systems and open standards, and how the value chain ecosystem is changing, featuring a range of solution providers from different backgrounds.

Moderator: Ryan CahalaneAxiom Systems. Panelists: Rob Simmons- Sandalwood Engineering; Dan Goss - Augury (no need for SIs… supposedly); Jon Hagan - Ambe Engineering; Dave Goodenough - Edgewater Technologies

ADVANCED MANUFACTURING EXPO: AUGUST 9-10, 2023 | S9

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SPONSORED CONTENT

MMTC SMART MANUFACTURING ZONE

BETTER WEBSITE BETTER BUSINESS Experience digital transformation with BizStream and Kentico Visit us at booth #1116 bizstream.com

kentico.com

The Michigan Manufacturing Technology Center (The Center) invites you to the Smart Manufacturing Zone to meet with our team and get hands-on with technology that can help your business. Alongside our partner technology suppliers, the Zone will be filled with various ways your organization can leverage automation that will impact the bottom line and drive improvements. From cobots to additive manufacturing to system integration, the Smart Manufacturing Zone has the solutions you need to remain competitive.

Technologies featured in the Smart Manufacturing Zone: • Cobots and Autonomous Mobile Robots • Additive Manufacturing • Augmented and Virtual Reality • Big Data and Information Systems • Digital Work Instructions • Machine Monitoring/Control Systems

THE CENTER TEAM: ROBERT SCIPIONE, APPLICATIONS ENGINEER In his role, Bob facilitates the transfer of knowledge in Smart Manufacturing Technologies to small and medium-sized manufacturers and assists with their Industry 4.0 implementations and strategies.

CHUCK WERNER, MANAGER OPERATIONAL EXCELLENCE/LEAN SIX SIGMA BLACK BELT Chuck has been a team member at The Center since 2016. His areas of expertise include Lean, Six Sigma, Industry 4.0 and Quality.

Chuck has devoted many years to practicing Six Sigma methods, ultimately earning a Six Sigma Master Black Belt in 2011.

JEFF WILLIAMS, CYBERSECURITY PROGRAM MANAGER Jeff leads The Center’s efforts to educate and equip small and medium-sized manufacturers to guard against the growing threat of cyber-attacks. He has over 20 years of experience in implementing and supporting network systems and infrastructure components.

STRENGTHENING THE FUTURE OF MICHIGAN MANUFACTURING. AT THE MICHIGAN MANUFACTURING TECHNOLOGY CENTER...

We know business growth is the work of a thousand details. The Center is dedicated to supporting Michigan businesses to work smarter, to compete and to prosper. We are here to assist you with: • Operational Excellence • Leadership Development • Skill Development

• Technology Implementation • Research Services

• Food Processing

including Plymouth and Grand Rapids.

• Growth

• Sustainability 616.301.6247 thecenterwest.org

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SPONSORED CONTENT

From high-tech to highly creative, don’t miss these headliners at the 2023 Advanced Manufacturing Expo!

MEET THE GOOD BOY: SPOT The Gray Solutions Team is showcasing “Spot” the Boston Robotics robotic dog at the Advanced Manufacturing Expo!

Spot is an agile mobile robot that navigates terrain with unprecedented mobility, allowing you to automate routine inspection tasks and data capture safely, accurately, and frequently. The results? Safer, more efficient and more predictable operations.

Train Locally for Industry 4.0

Formed in 2018, Gray Solutions is a leader in automation and process integration for customers in Food & Beverage. As part of the Gray family of brands, they continue to creatively address customer challenges in projects small to large. Whether you need a simple modification or a new facility, their services will increase efficiencies in your system through the power of data and information technology.

WELDING DEMO WITH RAE RIPPLE The Advanced Manufacturing Expo is very excited to host sculptor Rae Ripple demonstrating her welding skills in the Metal Working Hall sponsored by Creston Industrial Sales. Metal materials have been donated by JR Automation of Holland, MI.

mtec.org

616.738.8935

Thompson M-TEC in Holland offers customized training at our facility or yours in many Industry 4.0 areas including: • FANUC Robotic Welding, Programming, Electrical and Mechanical • Hydraulic/Pneumatic Controls • Allen-Bradley/Siemens PLC

Schedule a free training consultation today!

Rae’s childhood was filled with adversity, and she was homeless at age 14, struggling to find stability and purpose. Then she discovered her sense of creativity through painting. That led to ultimately picking up a plasma cutter and beginning welding, where she finally found her purpose – to create and share art with the world. Now, she spends her days painting murals, creating metal sculptures and sharing her passion everywhere she goes.

Rae has been featured on the “Down to Business” podcast, “Monster Garage” on Discovery Channel, and has been published in “Welder magazine.” She is partnered with AlumaReel, Hypertherm, Lincoln Electric, FastCut CNC, Flame Technologies Inc. and Benchmark Abrasives. She has painted murals all over Texas and has installed metal work all over the world.

Find Rae demonstrating her artistry live from 12:45-1:45 p.m. and 2-3 p.m.

Wednesday and Thursday at Booth 1320 in the Automation Hall, sponsored

by Creston.

AUTONOMOUS ANYTHING: WHEEL_ME Check out Wheel_Me in the Automation Hall demo area, sponsored

by Industrial Control. These self-driving wheels are the first and only autonomous wheel in the world!

The innovation transforms anything into an autonomous mobile robot with minimal effort and without the need to alter its design.

Simply build the frame, mount the wheels and watch it crab crawl right to left and move forward and backward. Teach the wheels with your phone or tablet by driving it around to create an internal map.

Wheel_Me makes robots accessible by offering autonomous wheels as a service. The monthly subscription cost includes hardware, software and service, so there is no need to buy the robots, no high risks involved and high flexibility.

Wheel_Me, from Oslo, Norway, came to Michigan with the help of Centrepolis Accelerator in Southfield, MI. Centrepolis — a hardtech and manufacturing business accelerator based at Lawrence Technological University (Lawrence Tech) in Southfield, Mich. — has capacity to help 100 companies each year, thanks in part to grant funding from EDA.

The One Workforce for West Michigan Manufacturing (1WF) program is tasked with creating and strengthening the talent pipelines for Michigan manufacturers.

1WF partners with employers and community organizations to identify individuals who are unemployed, or underemployed who may benefit from developing new skills to help them enter the manufacturing workplace.

GRCC and our partners are increasing the skill level of available workers to fill existing job openings in well-paying, middle- and highskilled, and high-growth jobs.

This program provides financial assistance as well as personal and professional support for those who are working to improve their family’s quality of life.

GRCC Tassell MTEC 622 Godfrey Ave SW • Grand Rapids , MI 49503 grcc.edu/oneworkforce

ADVANCED MANUFACTURING EXPO: AUGUST 9-10, 2023 | S11

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SPONSORED CONTENT

SPEAKER/BREAKOUT ROOM

AGENDAS Wednesday, August 9

AUTOMATION BREAKOUT ROOM

METALWORKING BREAKOUT ROOM

9:00 AM - 10:00 AM A COMMON SENSE SOLUTION FOR OEE Speaker: Chuck Ridgeway Presented by: Horner Automation

9:00 AM - 10:00 AM SCHOOL VISITS AND SPEAKING EVENTS, WHAT IT MEANS TO ME AND WHY I LIKE DOING IT! Speaker: Rae Ripple Exhibitor: Creston Industrial Sales

10:30 AM - 11:30 AM HOW TO TURN YOUR AUTOMATION FOMO INTO ACTION AND JUST GET STARTED Speaker: Sami Birch Presented by: Mission Design 12:00 PM - 1:00 PM IIOT REMOTE MONITORING SIMPLIFIED Speaker: Tyrone Visser Presented by: WAGO KEYNOTE

10:30 AM - 11:30 AM FIND YOUR PASSION IN MANUFACTURING Speaker: Jacob Sanches & Ian Storck Exhibitor: Creston Industrial Sales 2:00 PM - 1:00 PM BUILDING A STRONGER WORKFORCE How Manufacturers Can Collaborate with Schools to Engage Young People in Manufacturing Speaker: Malachi Greb & Jenna Vessel Presented by: Creston Industrial Sales

1:30 PM - 2:30 PM WHY IT’S CRUCIAL TO EMBRACE INNOVATION RATHER THAN FEAR IT Speaker: Walker Mattox Presented by: Gray Solutions

1:30 PM - 2:30 PM THE STATE OF MANUFACTURING A panel discussion covering topics of supply chain, labor/ talent, inflation/recession, technology, and industry 4.0.

Speaker: Danielle Schneider Presented by: Creston Industrial Sales

MECHANICAL BREAKOUT ROOM

GENERAL MANUFACTURING BREAKOUT ROOM

10:30 AM - 11:30 AM OVERCOMING MARKETING OBSTACLES IN THE MANUFACTURING INDUSTRY Speaker: Thomas Blanck Presented by: TMBPartners

9:00 AM - 10:00 AM DIGITIZATION STARTS WITH DITCHING CLIPBOARDS ENABLING SMALLER FACTORIES AND THE SUPPLY CHAIN This presentation will focus on how mid-sized factories can easily and affordably harness improvements on the shop floor and begin their digital transformation. It all starts with data.

Speaker: Ryan Kuhlenbeck Presented by: Pico MES

12:00 PM - 1:00 PM NITROGEN GAS SAVES NITROGEN TECHNOLOGY AND ITS APPLICATIONS Speaker: Mike Kinnucane Presented by: MCE 1:30 PM - 2:30 PM DISRUPTING BEARING LUBRICATION RETHINK HOW YOU LUBRICATE YOUR BEARINGS Speaker: Jeremy Bey Presented by: UE Systems

10:30 AM - 11:30 AM FLEXIBLE LABOR MODEL DRIVES OPERATIONAL EXCELLENCE! Speaker: Patrick Dippel Exhibitor: Veryable 1:30 PM - 2:30 PM NEXT GENERATION ENGAGEMENT IN YOUR WORKFORCE, LEADERSHIP AND OWNERSHIP Speaker: Robin Burns & Laura Preuss Exhibitor: Family Business Alliance

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The way you work today, won’t work tomorrow.

On-Demand Labor for Manufacturing and Distribution Rigid hiring practices are costing you time and money. You need flexibility and operational agility that can only be achieved by addressing your key constraint: labor.

That’s where on-demand labor gives you more options.

You can instantly flex labor capacity up or down to meet demand in real time. You don’t have to do things the way they’ve always been done.

Do something different.

Scan the QR Code to learn more

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SPONSORED CONTENT

EXHIBITORS Advanced Manufacturing Expo 2023 DEVOS PLACE - GRAND RAPIDS, MI | AUGUST 9-10, 2023 | Wednesday & Thursday

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SPONSORED CONTENT

AUTOMATION HALL COMPANY

BOOTH NUMBER

COMPANY

BOOTH NUMBER

Applied Control, Inc.

910 Edgewater Automation 905 Edgewater Automation designs and builds custom automation 1302 equipment for a wide variety of industries. The company has five locations in Michigan and South Carolina, where 1023 engineering, machining, and building all take place. Featured on the Inc. 5000 list of fastest-growing companies in America, 1310 Edgewater Automation is constantly improving and growing in talent, experience, and technology. ISO 9001:2015 Certified 932 Quality Management System and an RIA Certified Robotic Integrator. 481 1111 Renaissance Drive, St. Joseph, MI 49085 www.edgewaterautomation.com 1213

Asyril

Encoder Products Company 1205

1110

Automation Alley

Epson Robots 1316

1014

Axis Automation

Essential Robot Products, Inc 916

925

BBC Bircher Smart Access

Extol, Inc. 923

915

Bihl+Wiedemann

Gig and Take 1100

1321

BizStream + Kentico

HighGear 1116

1313

BUSINESS INTELLIGENCE SOLUTIONS LLC

908

Canon USA

Hokuyo Automatic USA Corporation 1002

Cetec ERP

1301C

Clients First Business Solutions

Hyperion Automation 1122

1108

Cone Drive

IAI 1105

1011

COUNTERPART ERP

Industrial Control 926

1114

Coval Vacuum Technology Inc.

Interactive Training Systems 924

1128

CrossBraining

INXPECT 1228

1012

Datalogic

item America LLC 1117

1218

DeepHow

Kassow Robots ApS 1134

1016

DeepView

Kiuey by PPAP Manager 1112

931

Detect-It LLC

Koops Automation Systems 1130

1306

DIAMTS

Launchpad 1317

1131

Diverse Global Industrial Solutions

Leuze electronic, Inc. 1309

1005

Doeren Mayhew

Lincode Labs Inc. 1315

1031

DT4o

1028

EAC Product Development Solution

1007

EDGE-SWEETS COMPANY

1008

Active Release Techniques Air Components, Inc. Altech Corporation American Feeding Systems, Inc. Andonix APG Vision

HighPoint Automation

Horner Automation

1021 1304 1004

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SPONSORED CONTENT

EXHIBITORS Advanced Manufacturing Expo 2023 DEVOS PLACE - GRAND RAPIDS, MI | AUGUST 9-10, 2023 | Wednesday & Thursday

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SPONSORED CONTENT

AUTOMATION HALL COMPANY

BOOTH NUMBER

COMPANY

BOOTH NUMBER

LMI Technologies 1003 “As the global leader in 3D scanning and inspection, LMI Technologies works to advance quality and productivity with 3D sensor technology. Our award-winning, FactorySmart laser, snapshot, and line confocal sensors improve the quality and efficiency of factory production by providing fast, accurate, reliable inspection solutions that leverage smart 3D technologies. Unlike contact-based measurement or 2D vision, our non-contact solutions add 3D shape information that is critical to achieving 100% quality control.To learn more about how LMIs inspection solutions can benefit your business, we invite you to contact us at contact@ lmi3d.com or visit us at www.lmi3d. com to explore the possibilities of smart 9200 Glenlyon Pkwy, 3D technology.”

Burnaby, British Columbia, CA V5J 5J8 https://lmi3d.com/

Purity Cylinder Gases, Inc. / Lincoln Electric / Hypertherm

1318

Q-mation

1208

QSI Automation.com

1220

R+W Coupling Technology

1301B

Rae Ripple

1320

Rapid Control Service, Inc.

920

Rapid Robotics

921

Real IT Solutions, Inc.

906

Logicraft Industrial Systems

1301G

REIKU NORTH AMERICA

1026

Losant IoT

Reliance Design Inc. 1227

1020

Mag Daddy

RFID, Inc. 922

1123C

Mayser USA, Inc.

RoboJob USA 930

826

MBI Automation

Rock Interface Systems 1018

903

MCE

SensoPart 1210

901

MFP Automation Engineering

SMAC 902

1212

Midwest Automation Supply

Smith Automation 917

1319

Mission Design & Automation

912

SPINULA ENGINEERING

1215

Mobile Industrial Robots - MiR

900

Steute Technologies, Inc.

1119

Re:Build Manufacturing

1301D

1200-1202 Sumitomo Drive Technologies

1106

Motion Index Drives

SunSource/Electro-Matic 1000

1224

MVB Improvements

Superior Integrated Systems Inc 1030

1216

Nabtesco Motion Control, Inc.

914

Nysus Solutions

Synergy Additive Manufacturing 1222

Onyx Renewable Partners L.P.

927

Phoenix Contact USA, Inc.

TeamViewer 1303

1217

Pico MES

Tech Rim Standards LLC 1132

1225

Proficient Machine and Automation

THG Automation 1006

1024

Progressive Handling, Inc.

TMI Supply Company 1118

1109

Promess Inc

Total ETO 1104

907

PTR SALES

Ulendo Technologies, Inc. 918

928

PULS

UNIMOTION USA INC 1009

1010

Morrell Group

SWYFT Solutions

TACK Electronics

1121 1214 1126

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SPONSORED CONTENT

EXHIBITORS Advanced Manufacturing Expo 2023 DEVOS PLACE - GRAND RAPIDS, MI | AUGUST 9-10, 2023 | Wednesday & Thursday

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SPONSORED CONTENT

AUTOMATION HALL COMPANY

BOOTH NUMBER

COMPANY

BOOTH NUMBER

Visual Components North America

1226 Wheel_Me

WAGO Corporation

1113

Wieland Electric Inc.

Ward Law Office LLC

929

Yaskawa America Inc., Motoman Robotics Division

Youngblood Automation 1305

Weiss North America, Inc.

1314 1301E 904 1022

MECHANICAL HALL COMPANY

BOOTH NUMBER

COMPANY

BOOTH NUMBER

3DXTECH

402

Harvest Solar

516

ABB Motors and Mechanical, Inc

420

H-T-L perma USA

412

AMI Bearings, Inc.

302

Hydraulex Inc

410

Ansell Healthcare LLC

424

Hydraulic Parts Source

316

Avetta

307

IMS SUPPLY

522

BDS / BMC

430

Iwis Drive Systems, LLC

306

Bestorq Inc.

304

LED in Action

419

BOPLAN USA

301

Lubriplate Lubricants

427

BUILT Systems

309

Machine Guard & Cover Co.

509

506

Martin Sprocket and Gear

409

CARTER Mfg.

511

Master Lock Company

404

Consumers Energy Business Efficiency Program

222

Maxco Chain, Ltd.

517B

DELRAY Systems

500

Merkur Innovation

434

ecojiva, LLC

505

Michigan Manufacturers Association

318

Electromedia Incorporated

531

Midwest PT Sales

517A

ErectaStep

300

Motion

416

Evergreen Tool Group

526

Nachi America - Bearings

429

Fluid-Aire Dynamics

406

New London Engineering

440

Gates

425

New Pig Corporation

311

GMS Manufacturing Solutions

438

North Coast Components

508

Graco Inc.

319

NPR of America

524B

Grand Rapids Community College

518

NTN Bearing

501

GRAPHALLOY

530

NSK Americas - Ann Arbor, MI

414

Group Marketing Services, Inc.

510

Ottawa Area ISD/ Thompson M-TEC

527

Burton Precision Inc.

(Continued on next page) ADVANCED MANUFACTURING EXPO: AUGUST 9-10, 2023 | S19

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SPONSORED CONTENT

EXHIBITORS Advanced Manufacturing Expo 2023 DEVOS PLACE - GRAND RAPIDS, MI | AUGUST 9-10, 2023 | Wednesday & Thursday

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SPONSORED CONTENT

MECHANICAL HALL COMPANY

BOOTH NUMBER

COMPANY

BOOTH NUMBER

OilSafe

314

State of Michigan: MIOSHA

520

Praeco Skills

315

Tacmina USA

312

QA1

403

Tap Magic

524B

Radicon Drive Systems, Inc.

432

Tech Spec Inc.

303

RBC Bearings and Dodge Industrial

418

The Timken Company

411

Regal Rexnord

310

THK America

422

Robert’s Ballscrew

408

TMBPartners

515

RVI, Inc.

308

Top Talent Search Experts, LLC

519

Schaeffler Group

322

Tsugami America

534

Select Store

523A

UE Systems, Inc.

529

SKF Lincoln

423

UnitX

321

SKF USA Inc.

421

US Tsubaki / KabelSchlepp

Smith Industrial Group

442

VaporTech

503

SMC Corporation of America

512

Veryable

400

Stalwart Safety

504

Yunsheng USA

514

502

METALWORKING HALL COMPANY

BOOTH NUMBER

COMPANY

BOOTH NUMBER

Achteck America

618

CNC Tooling Solutions, LLC

611

ACSC

823

Creston Industrial

712

Allied Machine & Engineering

604

D.P. Brandel Company -> Carmex Precision Tools / Crystallume /

ANCHOR LUBRICANTS LLC

719

Eight Tool Co. / Michigan Drill & Cutting Tools / RobbJack

716

Ashburn Chemical Technologies

617

De Boer Tool

807

Batteries Plus Bulbs

628

Dynabrade Inc.

818

Bison USA Corp.

606

Dynamic Machine

700

Blue Photon

720

Eastern Oil Company

808

Braun Machinery Company

814

EH & Associates, LLC -> Riten Industries / Bilz

803

Broadview Product Development

623

Everede Tool Company

802

Castrol Industrial | BP Lubricants USA Inc.

714

Family Business Alliance

704

CERATIZIT USA, Inc.

615

Fastmill USA

608D

CH Hanson - Palmgren - CSV Marketing

624

Fettig.jobs

605

CIMSOURCE GmbH

608A

FIRST Robotics Competition

625

(Continued on next page)

ADVANCED MANUFACTURING EXPO: AUGUST 9-10, 2023 | S21

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SPONSORED CONTENT

EXHIBITORS Advanced Manufacturing Expo 2023 DEVOS PLACE - GRAND RAPIDS, MI | AUGUST 9-10, 2023 | Wednesday & Thursday

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SPONSORED CONTENT

METALWORKING HALL COMPANY

BOOTH NUMBER

COMPANY

BOOTH NUMBER

Forerunner 3D Printing

601

Premier Factory Safety

820

GARR TOOL

801

QualiChem, Inc.

702

Gorilla Mill

705

Quality Spraying Technologies

819

Gosiger Machine Tools, LLC

810

Reid Supply

809

GradCo Inc. -> IMCO / Precision Cutting Tool / Rego-Fix

813

Royal Products

817

GRS Stohler -> Adenna / Edge Eyewear / MK Morse / Wiha Tools

709

Sales & Marketing Dynamics, Inc.

824

Guhring Inc.

710

Sandalwood Engineering and Ergonomics

729

GWS Tool Group

616

SCHUNK

603

H&R Mfg.

706B

Haimer USA

607

Horn USA, Inc.

801B

Industrial Magnetics, Inc. (IMI)

805

Jergens, Inc

718

KORLOY AMERICA Inc.

608C

KYOCERA SGS Precision Tools Inc.

722

SFM Group, LLC 717 SFM Group has been helping businesses achieve operational excellence through a unique approach where sustainability & productivity matter, for over 35 years. We are passionate about helping businesses achieve operational excellence and improving the quality of work life for their employees. Our core service is to rapidly transform organizations to thrive on using the essential tools of Lean, Continuous Improvement, Quality, and Leadership. https://www.sfmgroupllc. com/ 300 S. Rath Ave. Suite 102, Ludington, MI 49341

Lach Diamond Inc.

804

LMT Tools USA

608B

Machine Ethics

723

MAPAL

806

Marketing Metal Creator Space

610

Martindale Electric / Gaylee Saws

622

Master Fluid Solutions

721

Merle Boes Inc.

620

Metalloid Corporation

728

Midwest Metrology

725

Millennium Machinery

600

Monaghan Tooling Group

703

Nachi America

802B

Oemeta - The Coolant Company

707

OSG USA, Inc.

701

Pferd, Inc

613

PIONEER Premium Tool & Work Holding

706

Precision Metalforming Association

731

SJA Solutions 724 Squint

726

STOR-LOC

621

Sumitomo Electric Carbide, Inc.

713

Swoosh Technologies

821

The FactoryLink -> 5th Axis / Flextur / Haydale /Insize / NexGen / NSK 602 Tsugami America

534

US Hydraulics

715

Vander Ziel Machinery

614

Vargus USA

708

VOLLMER of America Corp.

822

Walter USA

612

Willis Machinery

800

Women In Manufacturing Western Michigan

609

YG1 USA

812

ADVANCED MANUFACTURING EXPO: AUGUST 9-10, 2023 | S23

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CRAIN’S LIST TOP AREA HEALTH CARE EDUCATION PROGRAMS Ranked by 2022 enrollment

Dept. head/dean

1

Grand Valley State University 1 Campus Drive Allendale 49401 p (616) 331-5000 gvsu.edu

Michigan University (College of Health 2 Western & Human Services)

2022 2021 Health care education programs enrollment Health care education degrees offered

8,150 8,758

BA, BS, BSN, BSW, BSE, BSW, DNP, DPT, graduate certificate, MAT, MHA, MHS, MPA, MPAS, MPH, MS, MSE, MSN, MSW, Psy.S., DrOT, AuD, PSYS

Allied health sciences, applied behavior analysis, applied food and nutrition, athletic training, audiology, behavioral neuroscience, biochemistry, bioinformatics and genomics, biomedical engineering, biomedical informatics, biomedical sciences, biostatistics, and more

Ron Cisler

2,593 2,909

896 degrees conferred

Addiction studies; holistic health studies; public health; social work; health administration; healthcare services and sciences; nursing; physician assistant; blindness and low vision studies; occupational therapy; physical therapy; speech, language and hearing sciences; interdisciplinary health sciences

Amy Stahley

1,248 690

AAS, BS, BSN, MS, MSN, Certificates and Diplomas

MS in health informatics and information management, nursing (generalist and family nurse practitioner), occupational therapy; MBA with health care management concentration; BS in biological laboratory sciences, health information management, health services administration, and more

Adejoke Ayoola

1,151 996

BA, BS, BSN, BSOT, BSTR, MA, Certificates

Nursing, neuroscience, pre-medicine, pre-dental, prepharmacy, pre-optometry, pre-physical therapy, prephysicians assistant, occupational therapy, public health (BA, MPH), speech pathology (BA, MA), exercise science, therapeutic recreation, health communication, Speech and Hearing Foundations

Julie Parks

538 538

Associate in nursing; associate in applied Nursing (RN, LPN), dental hygiene, dental assistant, arts and sciences: dental assistant, radiologic technology, occupational therapy assistant, dental hygiene, occupational therapy surgical technican. Non-credit/certificate: Acute care assistant, radiologic technology advanced skills, pharmacy technician, certificate in aging, dementia care, personal trainer certification, registered medical assistant, phlebotomy, CPR

Aron Sousa

356 359

MD, MD-PhD, MD-MPH, MD-MBA

Ned Keller Connie Sattler Misty Emmons

236 230

AS-health services, BS-exercise science AS-health services, BS-exercise science (pre(pre-occupational therapy), BS-exercise occupational therapy), BS-exercise science (pre-physical science (pre-physical therapy), BStherapy), BS-exercise science (pre-cardiac rehab.), BSexercise science (pre-cardiac rehab), BS- biology (pre-med), BS-biology (pre-pharmacy), BS-biology biology (pre-med),BS -biology (pre(pre-physicians assistant), BS-biology (pre-dental), MBApharmacy),BS-biology (pre-physicians business administration/healthcare and BSN-nursing assistant), BS-biology (pre-dental), and more

Heather Leonard

213 183

Licensed massage therapist, Medical massage therapy, acupressure and massage, phlebotomist, holistic health practitioner/ personal training, phlebotomy, holistic health practitionerherbal master and holistic life coach, herbal master/holistic life coach personal training program

Elizabeth Kirby

208 30

Undergraduate Certificate, BS, Graduate Doctor of health administration, master of science in Certificate, MS, Ph.D. nutrition and dietetics, master of science in administration-health services administration, graduate certificate in health systems leadership, master of health administration, and more

DND

158 258

Bachelor of Science in health science, Exercise science, health science, nursing Bachelor of Science in exercise science, Bachelor of Science in nursing

Jonathan Peterson

129 133

BSN

Nursing

Suzanne Keep Ph.D., RN, NAP

112 125

Bachelor of Science in nursing

Bachelor of Science in nursing

Wraegen Williams

40 37

Bachelor of Arts

Pre-professional (medical, dental, veterinary, physical therapy, etc.)

200 Ionia Ave. SW Grand Rapids 49503 p (269) 387-2000 wmich.edu University 3 Davenport 6191 Kraft Ave. SE Grand Rapids 49512 p (800) 686-1600 f 732-1141 davenport.edu University 4 Calvin 3201 Burton St. SE Grand Rapids 49546 p (616) 526-6000 calvin.edu Rapids Community College 5 Grand 143 Bostwick Ave. NE Grand Rapids 49503 p (616) 234-4000 grcc.edu State University College of Human 6 Michigan Medicine

Health care education programs offered

Philip Batty

Allopathic medical education

15 Michigan St. NE Grand Rapids 49503 p (616) 233-1678 humanmedicine.msu.edu University 7 Cornerstone 1001 East Beltline Ave. NE Grand Rapids 49525 p (616) 949-5300 f 222-1528 cornerstone.edu

Heron Academy of Healing Arts & 8 Blue Sciences 2040 Raybrook St. SE Grand Rapids 49546 p (616) 285-9999 f 956-7777 blueheronacademy.com Michigan University - Grand Rapids 9 Central 1633 East Beltline Ave. NE Grand Rapids 49525 p (616) 361-4160 online.cmich.edu College 10 Aquinas 1700 E. Fulton St. Grand Rapids 49506 p (616) 632-8900 f 732-4489 aquinas.edu College 11 Hope 141 E. 12th St. Holland 49423 p (616) 395-7000 hope.edu of Detroit Mercy - GR 12 University 200 Jefferson Ave. SE, Suite 220 Grand Rapids 49503 p (616) 752-6082 udmercy.edu College 13 Kalamazoo 1200 Academy St. Kalamazoo 49006 p (269) 337-7000 f 337-7305 kzoo.edu

Crain's Grand Rapids Business list of top area health care education programs, ranked by 2022 enrollment, is the most comprehensive available. The list is based on responses to Crain's Grand Rapids Business surveys. Crain's Grand Rapids Business defines "West Michigan" as Allegan, Kent, Ottawa and Muskegon counties. To showcase a broader range of health care education programs, Crain's Grand Rapids Business also surveyed programs in surrounding counties. Crain's Grand Rapids Business surveyed 38 programs; 13 returned surveys and 13 are listed. To be considered for future lists, email danielle.nelson@crain.com. DND = Did not disclose

LIST STORE: Download this list now at crainsgrandrapids.com in Excel or PDF format. | The Book of Lists and other lists are also available.

July 24, 2023 | CRAIN’S GRAND RAPIDS BUSINESS | 41

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7/19/23 11:28 AM

FSU dean develops eyeglass adapter for people with cochlear implants Now he’s looking for a way to scale the project

By Mark Sanchez

people.’ But as we started to look into it, the only thing that really An idea came to Dr. Daniel Tay- was an option was tape or rubber lor one day when he was walking bands and all that kind of thing to around the optical dispensary at make them more secure,” said the Ferris State University Michi- Taylor, the father of a 5-year-old son, Britt, who was born gan College of Optomedeaf and has a cochlear try, where he serves as implant. dean.

“We’re trying to take A person was getting some people who have to fitted for a pair of sunfind a bunch of annoying glasses that had Bluesolutions that don’t work tooth ear buds built into right and give them one the frame. The moment that just fixes the probmade Taylor think about lem,” he said. the potential for a similar Dr. Daniel Taylor, From that first inkling, device for people who Ferris State Taylor began working wear eyeglasses and are University with Jaclyn Vander Ploeg, deaf and have a cochlear Michigan College an engineering technolimplant that allows them of Optometry. ogy student at Ferris to hear.

The problem for those individu- State in the fall of 2018, who took als is that the external processor up his idea for her senior project. for the cochlear implant sits atop Vander Ploeg worked up specifithe ear and interferes with the cations for a device that’s fits onto the arms of the eyeglass frame, arms on the eyeglasses.

“We’re sitting there looking at next to the exterior cochlear prothis thing and thinking, ‘Surely, cessor.

A prototype of the adaptor, there is something we can do to help make it more comfortable, known presently as Protoconch, is more secure and more usable to now ready for beta testing, which

will occur over the next year with 10 to 25 patients in a project backed by a $48,520 Kickstart Award from the Michigan Economic Development Corp.

The MEDC previously provided Taylor a nearly $50,000 grant in 2019 to take Protoconch from concept to prototype. He had to pause development of the adaptor for a year during the pandemic.

Participants in the testing “will just wear it and give us their feedback,” said Taylor, who hopes to refine the final design for Protoconch and introduce it to the market in a year.

Taylor secured a patent for Protoconch earlier this year and wants to find a partner that will either buy or license the design behind Protoconch and commercialize the device on a broad scale.

“We want to get this to the people who need it. The best way is to partner with a medical device manufacturer of some kind,” he said. “The best-case scenario is that we either sell the intellectual property or license it to a company that can really do this at scale, but we’re prepared to do it on a small scale if we need to for a

while.”

Taylor has yet to find a potential partner “who wants to really take this and run with it,” although he’s talked with numerous optometrists, audiologists, speech pathologists and parents “who all said, ‘When this is ready, let me know because my patients need it.’”

The Protoconch adaptor is designed for easy installation by an optician. It’s also as unobtrusive as possible for users, said Taylor, who believes it could sell for $20 to $40.

“We want to make it so that it is as much like you or me wearing a pair of glasses as anything. It’s a big deal for kids, but also for people who are getting to the point where they need to wear reading glasses and now they’re like, ‘Hey, every time I take these reading glasses off, one of my cochlear implants goes flying,’” he said. “This makes it a lot less obtrusive and a lot more comfortable.

“This is going to be something that helps a lot of people.”

The Protoconch eyeglass adaptor that Taylor and Vander Ploeg invented “is a great example of research being done and continuing at Ferris, which brings recogni-

Britt Taylor, the son of Michigan College of Optometry Dean Dr. Daniel Taylor, models the Protoconch eyeglass adaptor for people with a cochlear implant.

tion to the university, as it addresses the needs of those with cochlear challenges who also require visual support,” Ferris State Provost and Vice President for Academic Affairs Bobby Fleischman said in a statement.

“The interdisciplinary, cutting-edge thinking and activity in our laboratories show Ferris’ prowess as a research institution while creating a variety of societal benefits,” Fleischman said. “This is consistent with the university’s mission, vision and values and exemplifies our dedication to serve these communities.”

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42 | CRAIN’S GRAND RAPIDS BUSINESS | July 24, 2023

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7/19/23 11:30 AM

Project planned at long-vacant Division Avenue building Work on apartments, commercial space expected to start later this year

By Kate Carlson

A long-vacant building on Division Avenue just south of the city’s downtown Heartside neighborhood is set to be redeveloped into eight apartments with ground floor commercial space.

The two-story, 10,800-squarefoot building at 433 S. Division Ave. formerly housed a barber shop, bar and church but has sat vacant for years, said Kevin Bassett, the property owner and president of local electro-coating manufacturer Spectrum Industries Inc. Bassett acquired the property for $150,000 in 2006, according to property records.

Development plans call for eight market-rate, one-bedroom apartments and 5,000 square feet of commercial space on the ground floor, which could be split into separate storefronts or combined into one use.

“We’re just trying to continue to work on developing that area and continuing to improve it,” Bassett said.

The project is allowed by right, but the development team is applying for incentives through the Obsolete Property Rehabilitation Act, said Ryan Schmidt, managing partner at Grand Rapids-based Indigo Design + Devel-

the Downtown Market and shares a block with a tattoo shop, hair salon, tropical fish store and the Happy Cat Cafe.

Bassett owns several properties in the area, including across the street at 13 McConnell St. SW and 421 and 427 S. Division Ave., which was set to be redeveloped into a 10-story apartment building with 431 market-rate units, a food hall and retail. The city approved Chicago-based Interra Realty’s plan for The McConnell project, but the company recently backed out of the property sale

and development, Bassett said.

“The building is on the market for sale, and I’m also just trying to find tenants to utilize the space until the right developer comes along,” Bassett said.

The McConnell Street building is mostly vacant, except for a small portion where Spectrum Industries houses its technology division, Bassett said. The property, which includes an 88,585-square-foot industrial building, is listed for $8 million by Advantage Commercial Real Estate.

A developer plans eight apartments and ground floor commercial space at the long-vacant building at 433 S. Division Ave. in Grand Rapids. | GOOGLE STREET VIEW

Value-driven plans.

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Better business benef its.

“It’s really important to the Division corridor that these types of buildings see new life — it’s important incremental development.”

— Ryan Schmidt, managing partner at Indigo Design + Development opment, which is developing the project for Bassett. Destigter Architecture & Planning is the project designer and Honor Construction Inc. is the general contractor.

Construction is expected to begin later this summer or early fall and conclude after eight months, Schmidt said.

“This is a pretty straightforward reuse of a vacant structure,” Schmidt said. “It’s pretty small, but I don’t want to downplay it, either, because it’s really important to the Division corridor that these types of buildings see new life — it’s important incremental development.”

The property also includes surface parking, and the building has a basement that will be used for storage and mechanical operations, Schmidt added. Residents on the back portion of the building would have balcony space.

Bassett at this point is unsure what type of commercial tenants would best fit in the building, but he is looking for uses to complement nearby businesses, he said.

The property is one block east of

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July 24, 2023 | CRAIN’S GRAND RAPIDS BUSINESS | 43

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7/19/23 11:31 AM

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Northwestern Mutual commits to downtown with new office The financial advisory firm is moving to Bridgewater Place later this year

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Northwestern Mutual is relocating its downtown Grand Rapids office to a new space under renovation in Bridgewater Place that supports a hybrid work environment as well as the firm’s interest in staying downtown.

The financial advisory firm plans to move from its current 27,000-square-foot office, located at 55 Campau Ave. NW in the Riverfront Plaza, to a similarly sized but newly refurbished office by the beginning of 2024. Northwestern Mutual’s future office will occupy the entire 12th floor — where Colliers International’s West Michigan office is currently located — and about 35% of the 13th floor at 333 Bridge St. NW. Colliers is “right-sizing” and relocating to a portion of the 10th floor in Bridgewater Place, said Scott Morgan, senior vice president at Colliers West Michigan who serves as the leasing agent for Colliers and Northwestern Mutual.

“We are excited to have Northwestern Mutual joining us at Bridgewater Place,” Morgan said via email. “Their recent lease is a testament to the continued importance of quality office space.

Bridgewater Place is one of the best office buildings in downtown Grand Rapids with great amenities, a prime location and even better views of the city. It has served our Colliers team well since 2015. When looking to rightsize our office for optimal collaboration and teamwork, we were pleased to find space within the building on the 10th floor.”

Approaching the end of its lease at Riverfront Plaza, Northwestern Mutual hired an outside firm to help determine the company’s future needs, said Joe Dierks, managing partner at Northwestern Mutual.

Amenities at Bridgewater Place include a central meeting space for Northwestern Mutual’s 130 professionals across West Michigan, a cafe, locker room and onsite caterer.

“Our study showed being downtown would be the best fit for our firm,” Dierks said. “Our firm actually serves about 55,000 clients, and we feel like it’s important to be as ingrained in the community as we possibly can and we really feel like the downtown area is the central hub where a lot of business is still being done. We feel like there were a couple of really good options for us. Part of it was convenience for us, for our team members and clients, but also our strategy moving

Bridgewater Place | KATE CARLSON

forward is we want to be in the middle of what’s going on in Grand Rapids and the downtown area is the place for us.”

Staying downtown over potentially cheaper options in the suburbs also shows Northwestern Mutual is “a good corporate citizen,” said Gustavo Cueto, chief operating officer and chief supervision officer at Northwestern Mutual.

The company’s move follows a similar downtown office realignment for Greenleaf Trust, which more than doubled its square footage at 25 Ottawa Ave. SW to accommodate growth as well as to reaffirm its commitment to downtown, executives said recently.

Northwestern Mutual’s move also reflects the reorganization — not necessarily growth — of downtown Grand Rapids office space, which ranged in vacancy from 8.7% to 14.9% in the first quarter of 2023. Recent brokerage reports showed a downtown office sector that’s holding steady, with few new leases and construction and a net absorption rate that dipped negative.

For Northwestern Mutual, its move to Bridgewater Place brings flexibility and room for potential growth, Dierks said.

“One of the reasons we’re moving is the space we’re going to has the ability to expand and we want to be able to accommodate our future growth,” he said.

Northwestern Mutual of West Michigan employs about 68 people on its team, which includes both advisers and other administrative positions. The goal is to expand the firm’s team to somewhere north of 85 people in the next five years, Dierks said.

As well, the company is repurposing its office space to meet workers’ needs in a more hybrid office environment.

“We found some ways to be more efficient with our space to accommodate the fact that not everybody comes in every day,” Dierks said. “A lot of companies learned how to accommodate and support a more hybrid work environment. So, we actually don’t need to expand the size of our footprint, we just need to be more efficient with our space.”

Ghafari Associates LLC is designing the new office, E3M Solutions is the engineering firm, and JLL is the project manager for the renovation project. A general contractor has not been selected.

44 | CRAIN’S GRAND RAPIDS BUSINESS | July 24, 2023

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7/19/23 11:49 AM

Software firm wants client tech investments to pay off Program focuses on peer coaching and relationship development

By Kayleigh Van Wyk

As companies increase their technology and software spending to better compete, one West Michigan service provider has taken steps to ensure its clients see a return on those investments.

Ada-based Michigan Software Labs LLC’s recently launched Principal Practice group assigns senior software specialists to enhance client onboarding and projects as a standard offering for product development.

The in-house group will manage the software company’s project portfolio and provide peer coaching and develop deeper relationships with clients. The idea is to focus on outcomes and project success to help clients stay competitive in the ever-evolving software industry, according to Michigan Software Labs executives.

“So many products fail or aren’t as successful as they could be,” said Joshua Hulst, managing partner at Michigan Software Labs and a principal in the new practice group. “Not necessarily because

there’s this deep technical or design challenge, but more often than not it’s because the products aren’t as aligned with what the actual outcomes are, what the needs are.”

Effective custom software solutions are even more essential in light of the expanding global market. Grand View Research forecasts the $429 billion global software development market to grow

rank customer experience (CX) as an important factor in their purchasing decisions.

“This is an opportunity for us to take what is often a very sizable investment from our clients, both in their time and dollars being spent on digital products and make sure: Are we actually getting a return on that investment that comes along with it?” Hulst said.

Hulst said Michigan Software Labs already has started to integrate the practice into several new client projects while other projects are transitioning to the new model.

The new practice also is aimed at fostering cross-industry learning, which aligns with Michigan Software Labs’ other recent tech-related initiatives. Earlier this year, the company joined a new talent and learning program launched by Grand Valley State University to connect local talent with employers. The Laker Accelerated Talent Link offers GVSU students work at major area employers both before and after they graduate. In addi-

“So many products fail or aren’t as successful as they could be.”

— Joshua Hulst, managing partner at Michigan Software Labs and a principal in the new practice group at an 11.7% compound annual growth rate from 2022 to 2030.

According to data from research firm Metrigy, 65% of companies plan to increase their technology spend in 2023, with a focus on enhancing customer experience.

Meanwhile, 73% of consumers

Michigan Software Labs’ headquarters at 7471 River St. SE in Ada. | COURTESY OF PROPERTY RECORDS

tion to Michigan Software Labs, participating employers are Corewell Health, Amway Corp., Acrisure LLC and Cascade Engineering.

Building on an ongoing partnership with GVSU, Michigan Software Labs will provide an enhanced co-op experience for students primarily from the College of Liberal Arts and Sciences to blend liberal arts with technology.

“We’re really excited about that opportunity to both bring in new students and show them what careers in technology could look like and help give them those skills, but also as a way of building up our own talent pipeline,” Hulst said. “It gets back to some of the impetus behind Principle Practice that software development and soft digital product development isn’t going anywhere. If anything,

it’s just going to become one of the more important skills and more important needs for the future of work.”

With talent development also a key priority for the ongoing tech hub strategy for Grand Rapids, Hulst sees partnerships as an essential component for executing that vision.

“Partnerships are super important … (and) that community of technology really positions Grand Rapids well to continue to take those steps forward where we can grow as a region, not just in any one individual area, but with technology in general as a whole focus,” Hulst said. “And that becomes really exciting to see, especially as I think about it from Michigan (Software) Labs’ perspective, where we want the region to flourish.”

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THE FINANCIAL BENEFITS OF PATIENT-FOCUSED HEALTH CARE SPACES

By Rockford Construction

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n the realm of health care, patient-focused spaces have emerged as a game-changer.

By recognizing the impact of physical environments on patient recovery, health care systems can design and construct spaces that enhance healing and well-being. At the same time, health care systems that invest in patient-focused design and construction can realize financial advantages associated with reduced patient recovery times and ultimately, an improved financial position.

The physical environment plays a significant role in patient recovery, and research has shown that well-designed healthcare spaces can positively influence patient outcomes. Elements such as natural light, views of nature, private rooms and noise reduction have been linked to faster recovery, reduced stress levels and improved patient satisfaction. For example, one study showed that 22% of patients in bright, naturally lit rooms reported needing fewer pain medications and 41% spent less time in the hospital.

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their surroundings, it has a profound impact on their psychological wellbeing and physical healing.

Patient-focused health care spaces contribute to accelerated recovery, which directly benefits the financial position of health care systems.

Shorter patient stays translate to reduced health care costs, increased patient turnover and improved resource utilization. By designing spaces that promote healing, health care systems can potentially decrease the average length of stay, leading to significant cost savings.

Moreover, faster patient recovery positively affects patient satisfaction and reputation. Satisfied patients are more likely to recommend the health care system to others, attracting new patients and boosting revenue. Positive word-of-mouth referrals contribute to a strong brand image and competitive advantage in the health care market.

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Embracing patient-focused design principles is not only a compassionate approach but also a strategic business decision that pays dividends in both patient outcomes and the bottom line. Healing gardens to spacious treatment rooms, right-sized accommodations for nursing staff as well as space that focuses on the family’s experience are all important considerations during design and construction.

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CRAIN’S CONTENT STUDIO July 24, 2023 | CRAIN’S GRAND RAPIDS BUSINESS | 45

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7/19/23 11:50 AM

Calvin University to acquire Grand Rapids film school Officials hope to complete transition for fall semester

By Abby Poirier

Calvin University is expanding its film program with the acquisition of a private, nonprofit, faithbased film school in Grand Rapids.

Describing the deal as the first step in a planned partnership between the two institutions, officials at Calvin said they’ve signed a letter of intent to acquire Compass College of Film and Media and integrate its students into the university’s film program.

Under the acquisition, Compass College’s currently enrolled students and those slated to begin classes in the fall semester will transfer under Calvin University’s umbrella to finish their education.

According to the last available data in the Department of Education’s Integrated Postsecondary Education Data System, Compass College enrolled 74 students in fall 2021 and employed three full-

time faculty and three part-time faculty.

In a public statement, Calvin University announced it will transfer all Compass students’ credits and has agreed to match the tuition Compass students anticipated for the 2023 academic year and honor their financial aid packages for subsequent years.

“This planned partnership will unite two institutions with complementary strengths in film and media education to create a rich-

Grand Rapids.

“We’re viewing it as a partnership,” said Jennie Bryant, a spokesperson for the transition team supporting Calvin and Compass on the acquisition.

Bryant said the deal will result in Compass College’s degree program closing, while Calvin will invest Compass’ students to transfer to its program.

“We’re continuing to work through the due diligence process and won’t have final details until that process is complete,” Bryant said.

The parties aim to finalize the deal prior to the start of the fall 2023 semester, “pending the completion of a comprehensive framework for the transition of assets, regulatory approvals and the approval of the boards of both institutions,” according to a statement.

For the tax year that ended June 30, 2021, Compass College reported annual revenues of $2.2 million and about $1.9 million in expenses, according to an IRS form. The college also listed net assets of more than $3.3 million.

“The integration of Compass College’s indepth technical program this fall will add a new dimension to Calvin.”

— Wiebe Boer, Calvin University president er educational experience for students,” according to a statement from Calvin.

Calvin’s film program also will move into Compass College’s 29,000-square-foot facility at 41 Sheldon St. SE in downtown

Compass College of Film and Media in Grand Rapids. | COURTESY OF PROPERTY RECORDS

As the organizations move forward, they will continue to work through the specifics to “blend the film programs in terms of curriculum, staffing, brand/name and other factors while working directly with students to ensure a smooth transition,” Bryant said.

“The integration of Compass College’s in-depth technical program this fall will add a new dimension to Calvin,” said university President Wiebe Boer in an online statement to Compass students.

The boutique private college got its start in 1997 as a 501(c)(3) nonprofit offshoot of the former Hanon McKendry advertising agency. The initial organization

focused mainly on offering film production to other Christian nonprofit organizations, but later expanded to include education in 2008 after Michigan started offering generous film tax incentives.

The school struggled during the transition, but found footing after hiring some key executives, gaining accreditation and securing backing from prominent area families.

In 2020, the school acquired its Sheldon Avenue building for $2.15 million from Dick and Betsy DeVos. Compass previously leased space in the building from ArtPrize and invested about $400,000 into renovations, according to prior reports.

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3 WAYS TO ENSURE A SUCCESSFUL NEW PAYROLL IMPLEMENTATION

By Beene Garter

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mplementing a new payroll system for your business should be as easy as possible and careful preparation helps ensure the process goes smoothly. Without process reviews, data verifications, and communication to third parties, the implementation process can become extremely difficult for your new payroll provider. Both implementation time and cost could increase without proper preparation. Here are three key areas of implementation and planning to focus on when your business begins with a new payroll provider.

Review Your Process Document your current processes from beginning to end. Clearly define the scope of your payroll process and key areas you wish to carry over or improve upon. Two primary review areas within your payroll process include: 1. Items to Identify: • Various employee classifications (exempt vs. non-exempt) • Different pay frequencies • Reimbursement for expenses, if typically done through paychecks • Benefits deductions • Data entry and systems integration

2. Policies on hand: • Attendance • Paid and unpaid time off • Commission and bonus pay Evaluate Data Obtain as much historical data from your current payroll system or process.

If you cannot collect historical data, ensure your new process accounts for secure data storage. If employees now have self-service access to update their own personal information, determine how you would like to implement this process.

Here are examples of historical data you should include for the implementation go-live date: • Find out where your legacy payroll and human resources data is stored • Perform a review of your current data to verify accuracy • Have employees update their personal information • Map legacy data transfer to the new system: Focus on transferring both electronic and paper records, from in-house systems and vendors or payroll providers

with governmental bodies and regulations, unions, financial institutions, benefits providers and many other agencies. Below are the more common organizations to inform of your change in systems:

Inform Third Parties It’s critical to let third parties know about the changes to your payroll system. Payroll is interconnected

• Government agencies and unions – Make sure the new provider offers integration of applicable guidelines and business regulations.

• Benefits providers – Begin planning the necessary integration steps by communicating with your organization’s benefits providers.

• Banks – You will be required to update banks you draw your payroll from.

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CRAIN’S CONTENT STUDIO 46 | CRAIN’S GRAND RAPIDS BUSINESS | July 24, 2023

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7/19/23 12:10 PM

New restaurant debuts traditional hot pot cooking King Pot is the area’s first Korean hot pot joint, but competition is coming

By Abby Poirier

A new Korean all-you-can-eat BBQ and hot pot buffet has found success in West Michigan serving traditional Asian fare.

Crystal Chen, owner of King Pot Inc. at 4176 28th St. SE in Kentwood, said she got the idea for the concept after noticing that none of the Asian restaurants in the community offered hot pot dishes.

While Korean BBQ has gained

prised that hot pot had yet to catch on in the local market. That’s when she decided to go all in on King Pot to introduce the city to one of Asian culture’s oldest dishes.

Chen said she knew West Michigan would be a great fit for the concept because of the large Asian community in the area.

“Because it’s the first (hot pot) restaurant here, a lot of people came here to try it and came back three or four times the first week,” Chen told Crain’s Grand Rapids Business.

Hot pot is a traditional, communal meal dating back hundreds of years that originated in China. The meal is intended to be eaten with friends and family gathered around a table to share a single pot of broth. To eat hot pot, diners add uncooked noodles, raw meat, vegetables and the seafood of their choice to a central pot, cooking the food until it’s ready to consume. It’s then removed piece by piece and dipped in a wide range of sauces.

At King Pot, which quietly opened in April, the hot pot experience includes a variety of menu options for customers to cook on their own at their tables, which come equipped with individual grills for cooking.

Meat options include pork, squid,

“Because it’s the first (hot pot) restaurant here, a lot of people came here to try it and came back three or four times the first week.”

— Crystal Chen, owner

traction in metro Grand Rapids with restaurants like K-Rok exclusively offering BBQ and ATO Sushi offering it on its sushi-heavy menu, Chen said she was sur-

King Pot opened in April at 4176 28th St. SE in Kentwood. | COURTESY PHOTOS

clams, lamb, brisket, beef tongue, shrimp, crab and more, in addition to mushrooms, tofu and eggs.

Vegetable options include potatoes, spinach, watercress, bok choy, corn, pumpkin and seaweed, among others.

“BBQ and hot pot is like a party,” Chen said. “It’s a gathering kind of food that’s shared with people so they always bring a big party here.”

Chen recalls fond memories of gathering around a hot pot with family during the Chinese New

Year and is excited to connect with other Asian people in West Michigan to share their culture.

King Pot, which can seat around 150-200 people, is Chen’s first fullfledged restaurant. She moved to America from China with her family 15 years ago, and found work in the restaurant industry because “when you first move to America, the restaurant jobs are the easier ones.”

She has worked in various Thai and Korean restaurants over the past 10 years, most recently opening an ice cream shop in Florida that has since closed.

Chen said her first foray into owning and running her own restaurant has proven both stressful and exciting as she begins building a customer base.

“Everybody likes the place and they are coming back, which makes me so happy,” she said.

While Chen has opened the first hot pot restaurant in Grand Rapids, she will soon share 28th Street with another hot pot joint. K-Pot, a national Korean hot pot chain, is planning a fall opening at 3333 28th St. SE, a 6,400-square-foot location that used to house pizza chain Old Chicago. K-Pot has locations in 17 states, including one in Novi, Michigan, with restaurants planned for Ann Arbor, Auburn Hills, Lansing and Sterling Heights.

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HOW ENERGY MANAGEMENT PAYS for a consultation — and many of the energy management products available to Consumers Energy business customers actually pay them to participate, through cash rebates or payment incentives.

By Consumers Energy

W

hether or not we spend much time thinking about it, our lives and businesses are powered by energy.

And the ways we engage with this resource can make a big difference for our operating costs — and our planet. But with so many ways to meet sustainability goals, Michigan businesses are sometimes left wondering what steps to take first.

Luckily, Consumers Energy is leading the clean energy transformation — and they’re eager for others to join them. In fact, for over a decade, they’ve been working to help customers find the best ways to save energy, save money and decarbonize their operations. How? By partnering with businesses across the state to treat energy as a strategic resource — and even get paid for doing so.

If you’re not sure where to start, that’s OK. Consumers Energy knows each business is unique, which is why they offer a full portfolio of energy management programs. But they won’t leave you alone to navigate the choices. The energy provider offers free energy consultations to their business customers — whether you’re a small start-up or a large commercial operation. They have expert Energy Advisors that can

help customers review their historic energy use, operational needs, and sustainability goals to find their best opportunities to save.

And they even have a special offering for small and medium businesses where they will install free energyefficiency products to get started.

Regardless of which energy saving option is best for your business, there are benefits to be had — and Consumers Energy will be with you to help navigate your clean energy journey.

Any business that is a Consumers Energy customer qualifies to receive a consultation. They want to help businesses of all sizes to save energy and save money. To schedule a free energy consultation, Commercial and Industrial businesses can call 877-607-0737 or complete the form at ConsumersEnergy. com/StartSaving. And small and medium businesses can call 855-210-5240 or complete the form at ConsumersEnergy.com/ SmallBusinessSavings.

So, you’re probably asking — what exactly is an energy consultation?

In short, it’s a conversation with an Energy Advisor to review your business’ energy use, operational needs and goals. Consumers Energy will help you understand where your energy dollars go, the steps you can take to use and spend less and which clean energy products are the best for your business.

And all of this is done free of charge.

There is no cost to the customer

You’re probably asking, how much can my business save by getting one of these consultations and participating in clean energy programs? Consumers Energy has products that save at a variety of levels. For example, many of their products offer substantial annual energy savings that can be captured year after year and reinvested into a business’ bottom line. Upgrading lighting and water fixtures with energy efficient products can save a small business thousands of dollars per year in energy costs. At the industrial level, the savings can climb into the millions.

Plus, the dollar savings that come with energy efficiency upgrades are just one way of measuring clean energy benefits. There are also non-energy impacts — things like safety, comfort and productivity. For example, when a business upgrades their lighting to brighter, more efficient bulbs, it can improve the line of sight in their workplace and make their workstations safer for their employees. And we all know people perform better when they’re

comfortable. By maintaining an efficient and high functioning HVAC system, you’ll keep your employees operating at their best AND your customers happy.

Finally, it’s also good for the planet.

When you use less energy and support the clean energy transition, your business is becoming a proactive Force of Change for Michigan. Consumers Energy knows that’s something their customers and communities care about.

All this emphasis on efficiency raises the question: Why would an energy provider want customers to use less of their product? When you use less energy, and are mindful of when you use it, you can help avoid turning to more expensive sources of energy.

But it’s more than cost savings.

Consumers Energy wants to partner with their customers to work toward a cleaner energy future for Michigan, because that’s good for everyone.

Get started today and learn more about the clean energy transformation and small ways your business can make a difference, visit ConsumersEnergy.com/ BusinessSavings.

CRAIN’S CONTENT STUDIO JULY 24, 2023 | CRAIN’S GRAND RAPIDS BUSINESS | 47

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7/19/23 11:54 AM

West Mich. projects receive millions from state budget Proposals include Muskegon housing, GR fire stations

By Mark Sanchez

The $82 billion state budget that lawmakers approved last month allocates one-time funding for myriad projects in West Michigan.

Among the largest appropriations is $35 million for Grand Rapids fire stations.

“I am grateful to legislators for this significant investment in public safety and efforts to improve fire services in our growing city,” Grand Rapids City Manager Mark Washington said today in a statement. “Our firefighters do a terrific job serving our community and we can now confidentially move forward with developing plans for financing, designing and constructing new stations. I will be working with staff and the City Commission in the upcoming fiscal year to solidify these plans.”

The new state budget as well provides $20 million to the city of Wyoming for what state Rep. John Fitzgerald, a Democrat from Wyoming, called “a transformational infrastructure project that will create economic opportunity for the people of this community and put

Wyoming on the map as the preeminent suburb in metro Grand Rapids.”

The project would include building a pedestrian bridge over 28th Street near Hook Avenue that will serve as the entryway to the city’s future downtown center and connect to the city’s park system, Fitzgerald said in a statement.

Kent County also provided $6 million in American Rescue Plan Act funds to the project and the city allocated $10 million of its ARPA funds.

“The investment from the state allows the city to expedite the City Center project and complete most of the phased project immediately,” Wyoming City Manager John Shay said in a statement. “Watching this project come to fruition is a success for our entire community.”

Other allocations in the fiscal year 2023-24 budget that starts Oct. 1 and, as of press time, awaits Gov. Gretchen Whitmer’s signature include: w $18 million for a $220 million housing development at the former Shaw Walker Furniture Co. plant near downtown Muskegon.

Parkland Properties last year acquired the Watermark Center at 930 Washington Ave. The 15-acre site includes 730,000 square feet of buildings that once housed a Shaw Walker Furniture plant that closed

THOUGHT LEADER REPORT

The new state budget includes $18 million in one-time funding to support the $220 million housing development proposed by Parkland Properties at the former Shaw Walker Furniture Co. plant near downtown Muskegon. The project would restore the existing buildings and repurpose them into up to 550 condominiums and apartments, as well as offices, retail space and more. | COURTESY PHOTO

in 1989. The project would restore the existing buildings and repurpose them into up to 550 condominiums and apartments, as well as offices, retail space and more. w $14 million for John Ball Zoo w $5 million for the Special Olympics Center in Grand Rapids w $5 million for the West Michigan Hispanic Chamber of Commerce for capital improvements

w $5 million for the Grand Rapids Children’s Museum w $3.5 million was earmarked for arts and cultural nonprofit The Diatribe Inc., which recently acquired a building along South Division Avenue with plans to convert it into a mixed-use development with retail, apartments and a venue for local performers w $1.8 million for the Grand Rap-

ids Ballet w $1.75 million for a farmers market outdoor space in Portage w $1.5 million for Blandford Nature Center in Grand Rapids State Sen. Mark Huizenga, a Republican from Walker, also noted in a statement that the 2024 fiscal year state budget provides a 19.8% funding increase for Grand Valley State University.

SPONSORED CONTENT

HEALTHCARE SPONSORED BY SMITH HAUGHEY RICE & ROEGGE

New protections for pregnant workers pose significant impacts to health care workforce Related medical conditions could be lactation, miscarriage and pregnancy loss, and fertility treatment. Limitations could include preeclampsia, gestational diabetes, and postpartum depression.

SPENCER LICKTEIG is an attorney at Smith Haughey Rice & Roegge and a member of the firm’s health law group.

O

n June 27, 2023, the federal Pregnant Workers Fairness Act (PWFA) went into effect, requiring employers to make reasonable accommodations for employees with known limitations due to pregnancy, childbirth, or related medical conditions.

The PWFA sets a legal minimum for states, applies to employers with 15 or more employees and expands on existing federal programs such as the FMLA and ADA. About the PWFA The PWFA defines “known limitations” as physical or mental conditions related to, affected by, or arising out of pregnancy, childbirth or related medical conditions, regardless of whether the condition meets the ADA’s definition of disability.

CRAIN’S CONTENT STUDIO

Offering Reasonable Accommodations Before offering a reasonable accommodation, employers must first collaborate with the employee.

Employers cannot solely offer employees leave, paid or unpaid, if other accommodations are available.

Permissible accommodations may include more frequent breaks, closer parking, or a revised work schedule.

Exceptions are allowed if the employer can prove the accommodation would create an undue hardship.

In addition, employers cannot deny employment opportunities, take adverse actions, or retaliate based on an employee’s request or need for reasonable accommodations.

The Health Care Industry & PWFA The PWFA is particularly important to the health care field, as many professions are statistically dominated by women.

According to the U.S. Census Bureau, as of 2019, women account for threequarters of full-time, year-round health care workers. Additionally, 72% of working women will become pregnant

while employed at some point in their lives.

Given these statistics, health care employers can inevitably expect to interact and comply with this law more frequently than others. Employers should start by adjusting policies, communicating the law and organization procedures to employees, and creating a system for receiving and protecting employees’ limitations.

The PWFA also creates privacy concerns over employee health information.

Employers must know how to handle this confidential information under applicable federal and state laws, especially given the personal and private nature of conditions covered under the PWFA. Next Steps While the PWFA is enforceable now, the Equal Employment Opportunity Commission has yet to release regulations related to enforcement. It plans to issue regulations toward the end of 2023, but some initial guidance is already available at eeoc.gov.

To learn more about the PWFA and how we can help, visit shrr.com.

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48 | CRAIN’S GRAND RAPIDS BUSINESS | July 24, 2023

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SHOWCASE INDUSTRY LEADERS AND THEIR CAREERS RECOGNIZE TOP ACHIEVERS IN GRAND RAPIDS’ PREMIER PUBLICATION New Hires / Promotions / Board Appointments Retirements / Special Acknowledgments

MAKE AN ANNOUNCEMENT Debora Stein / dstein@crain.com

CrainsGrandRapids.com/POTM

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5/17/23 11:27 AM

COMMENTARY

Repowering Palisades: Energizing Michigan’s economic future

FLICKR

A

s executive director of Market Van Buren, a subsidiary of Kinexus Group, I see firsthand how the repowering of Palisades nuclear power plant in Van Buren County will positively impact the economy, the workforce, and the overall community that we have worked so hard to strengthen and build over the years.

Market Van Buren is an economic development organization serving Cass and Van Buren counties; however, the positive impact of repowering the plant will be felt far beZach Morris is yond our region.

As Michigan strives to executive build a sustainable and director of prosperous future, it is Market Van essential to recognize the Buren important role that energy plays in shaping the state’s economic development. The repowering of the Palisades nuclear power plant presents a historic opportunity for Michigan. With its promise of hundreds of permanent high-paying jobs, substantial tax revenues, and reliable baseload generation, the repowering of Palisades can serve as a catalyst for economic growth, and support current and growing energy needs across the state.

Repowering Palisades will create hundreds of high-paying jobs that will strengthen Michigan’s economy. The nuclear power industry is known for its stable employment opportunities, offering longterm career prospects and attractive wages.

These positions not only provide financial stability for workers and their families but

also contribute to the growth of local businesses and the overall regional economy.

These jobs are supplemented every 18 months by the influx of more than 1,000 contractors who arrive on site to support regularly scheduled refueling and maintenance outages. That predictable boost in economic activity stimulates growth for small businesses and contributes to a resilient economic ecosystem.

In fact, an ongoing study conducted by

the Economic Growth Institute at the University of Michigan found that the premature closure of Palisades will have an adverse economic impact on the region of more than $250 million annually.

As one of the region’s largest employers, Palisades will generate substantial tax revenues for the local community. These additional funds can be strategically allocated to bolster education, health care, infrastructure, and other vital public services,

thereby improving the overall quality of life for all Michiganders.

The repowering of Palisades also addresses the critical need for baseload generation in Michigan, which will ensure we do not have rolling brownouts, like some parts of the world have. As the state transitions away from fossil fuel-based energy sources, ensuring a consistent and reliable power supply becomes paramount. Nuclear power plants, such as Palisades, provide a dependable around-the-clock generation capacity that can complement intermittent renewable energy sources. The availability of reliable baseload power is important for Michigan households and job creators and essential to future growth within our state.

The repowering of Palisades represents a unique, bipartisan opportunity for Michigan to secure a prosperous future, driven by sustainable economic growth, job creation and reliable energy generation. The hundreds of permanent high-paying jobs, millions in annual tax revenues, and the contractor presence associated with refueling and maintenance outages will invigorate local economies and drive regional development.

Additionally, the reliable baseload generation provided by Palisades will serve as a crucial asset in offsetting the closure of fossil fuel-based energy sources, supporting new manufacturing endeavors and ensuring a stable energy supply for households across the state.

By embracing the repowering of Palisades, Michigan can pave the way for a cleaner, more resilient, and prosperous future, while helping the region and state compete and win.

COMMENTARY

‘Out of office’ brings benefits when you get back

W

to be bothered by the fact that I alking through the narwas sharing it with so many others. row streets of Venice, ItIt was the same with Rome, aly, with a takeaway pizwhere we walked inside the Colza in my hand, I was surrounded osseum under perfect blue skies. by tourists.

And the Cinque Terre villages Yes, my family and I were among along the Italian Riviera, where the thousands flocking to Europe rock jumpers plunged into the this summer as part of the pent-up clear waters of the Ligurian Sea. post-pandemic travel demand.

Italy had been on our radar No, we were not among the Mickey tourists behaving badly you may Ciokajlo is the since the first summer of the panhave heard about, such as the executive editor demic when we longed to get away but it was much less practiyoung man from the UK who for Crain’s carved his and his girlfriend’s ini- Detroit Business cal to do so, let alone the travel restrictions at the time. tials into the Colosseum. In fact, and Crain’s While it felt long overdue, the although it was busy, we didn’t en- Grand Rapids timing of this respite was spot on. counter any trouble at all. Even our Business.

A survey of U.S. workers by the flights to and from Detroit Metro Airport were on time and without incident. Pew Research Center released this spring I didn’t mind sharing the streets and ca- found that nearly half do not take all of the nals of Venice with so many others. It is paid time off their employer offers. The top such an enchanting place, especially for a reasons include not feeling they need first-time visitor, I was too caught up in the more time, worrying they might fall besights and sounds of this Old World locale hind on the job and feeling badly about

Umbrellas line the beach in Monterosso, Italy. | MICKEY CIOKAJLO

co-workers taking on additional work.

As one who has been guilty of leaving PTO on the table, these Pew survey findings resonate with me.

There is plenty of research that shows the benefits of taking time off from work to relax and recharge. A much-cited Harvard Business Review article from 2016 titled, “The Data-Driven Case for Vacation,”

notes: “Statistically, taking more vacations results in greater success at work as well as lower stress and more happiness at work and home.”

As a journalist, I’ve long believed that vacations involving travel have the added benefit of opening our eyes to new places, experiencing different cultures and appreciating other perspectives. Of course, this is true for everyone, but for journalists whose job it is to experience our surroundings and do our best to make sense of it for others, travel plays to those instincts and senses.

Whether it’s two weeks overseas or a weekend Up North, having the opportunity to get away and recharge is important.

Personally, I’m ready to get back to work, feeling refreshed and ready to go. That said, another benefit of taking time off is having the space to dream about a future excursion. I’ll admit to doing some poking around online already.

How much is a flight to Buenos Aires?

50 | CRAIN’S GRAND RAPIDS BUSINESS | July 24, 2023

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7/19/23 12:29 PM

LG ENERGY From Page 1

misinterpretation,” and that the project is on track with the original construction timeline based on favorable weather conditions.

According to the company, a daily workforce of 650 people are actively engaged with construction activities, including exterior wall installation, roofing and clean room/dry room wall paneling.

More than 100 local, national and international trade partners are involved in the project.

Once completed, the new facility is expected to quintuple LGES Michigan’s annual production capacity from 5 gigawatt hours (GWh) to 25 GWh. Traboulay highlighted some technological capabilities of the “smart facility,” which includes artificial intelligence to optimize production and boost supply chain efficiency.

“This is modern manufacturing,” he said. “We have a lot of manufacturing intelligence we gather. The plant is telling us, how do you optimize? What should we run? What’s the best way to run what we run?

“For every one person we hire — you hire me, and I have a family with a wife and two kids — multiply that, and that’s the impact on the community. It’s an impact on real estate, and it’s an impact on food and on schools.”

— Roger Traboulay, senior manager of energy engineering for LGES Michigan

It’s really moving us toward AI, toward smarter and smarter factories.”

LGES Michigan expects to complete construction by April 2024 and operate at full capacity in 2025.

The expansion also will bring 1,000 new technical jobs by the start of production in 2025. LGES Michigan already employs about 1,500 workers at its campus and will work to use the new space as an incubating hub for the next generation of EV battery professionals.

For Traboulay, the project’s economic and job-creation benefits to the community are evident.

“For every one person we hire — you hire me, and I have a family with a wife and two kids — multiply that, and that’s the impact on the community. It’s an impact on real estate, and it’s an impact on food and on schools,” Traboulay said.

“From an economic and a wider community impact, it’s huge.”

The new Holland facility is part of LG Energy Solution’s broader effort to ramp up EV battery production across the U.S. The company has seven manufacturing facilities operating or under construction across the U.S., including standalone facilities in

Holland and in Queen Creek, Ariz., plus five joint venture facilities with companies such as General Motors, Honda and Hyundai Motor Co. Once all construction phases are completed, annual production capacity across all of the company’s U.S. facilities is anticipated to reach 278 GWh. LG Energy Solution also operates manufacturing sites in China, Poland and its South Korean headquarters.

The extensive network helps the company optimize the cost of logistics through local production and adapt better to any market changes, executives say.

LG aims to leverage these advantages for a competitive edge in the growing EV industry. The International Energy Agency’s (IEA) Global Electric Vehicle Outlook from April reported that more than 10 million EVs were sold world-

wide in 2022, which is expected to grow by 35% to 14 million this year.

That means EVs’ share of the overall car market is forecasted to grow from about 4% in 2020 to 18% by the end of this year, according to the IEA. According to research from Goldman Sachs, EVs will make up about half of new car sales worldwide by 2035.

Fortune Business Insights reported earlier this year that the global EV battery market, specifically, was valued at nearly $38 billion in 2021.

That’s forecasted to grow to nearly $99 billion by 2029, according to Fortune Business Insights.

“We have to match battery production with the needs of vehicles,” Traboulay said. “You’re going to see more capacity, you’re going to see more technology. …

The technology of the battery, just like the technology of the car, will keep evolving, but it is the future.”

LGES Michigan’s Holland expansion includes a new facility plus several other buildings with advanced manufacturing capabilities. | KAYLEIGH VAN WYK

Advertising Section

PEOPLE ON THE MOVE

To place your listing, visit https://www.crainsgrandrapids. com/people-on-the-move/ or, for more information, contact Debora Stein at 917.226.5470 / dstein@crain.com

ADVERTISING, MARKETING & PR

CONSTRUCTION

CONSTRUCTION

MINDSCAPE

Lee Industrial Contracting

Wolverine Building Group

MINDSCAPE, a leading provider of Digital Marketing Solutions and a HubSpot Solutions Partner, today announced the appointment of Amanda Brand as the company’s Chief Executive Officer, effective immediately. This strategic move comes as a reflection of the company’s confidence in Ms. Brand’s exceptional leadership and contributions to MINDSCAPE’s growth and success. Brand’s promotion to CEO is a recognition of her distinctive skills, passions, and abilities. Join us in congratulating Amanda.

Lee Industrial Contracting is pleased to announce Kevin Wildfong has joined the organization as Senior Director of Operations for the company’s West Michigan location. With more than 25 years of experience, Kevin will oversee the operational and growth strategies of Lee Contracting’s electrical and mechanical departments. Kevin will be responsible for leading the department teams, while ensuring a high level of quality and customer satisfaction.

Wolverine Building Group has announced that Derek Hunderman will be the new Chief Operations Officer of the 84-year-old company.

Hunderman has nearly 20 years of experience in commercial construction and real estate. He has generated strategy and improved metrics for several of Michigan’s industry leaders.

Wolverine has experienced continued growth under the ownership of Curt Mulder.

Adding a COO to the executive team is the planned next step to support the expansion of services.

MANUFACTURING

BANKING & FINANCE

First National Bank First National Bank of Michigan (FNBM) continues to expand its commercial banking team of local industry experts by hiring Kirstyn Monroe.

“We are pleased to welcome Kirstyn to our commercial banking team,” said FNBM Market President, Mike Hollander. “Kirstyn has over 17 years of commercial banking experience in the Grand Rapids Market and will make a great addition to the FNBM Grand Rapids team.”

Monroe is a graduate of GVSU.

CONSTRUCTION

Owen-Ames-Kimball Owen-Ames-Kimball, a construction management firm in Grand Rapids, recently announced the hiring of Adam Seng as Senior Project Manager.

Adam joins O-A-K with a bachelor’s degree in Construction Management from Ferris State University and over twenty years of construction experience.

Adam specializes in healthcare construction, having successfully completed projects for healthcare systems such as Spectrum Health and Metro Health. At O-A-K, Adam is currently managing projects for Hope College, Allegan Public Schools, Holland Public Schools, and Ingham County.

Fettig.jobs Fettig.jobs, a leading staffing agency based in Grand Rapids, is proud to welcome Dexter Weber as the Vice President of Sales & Marketing. In this role, Dexter will be responsible for overseeing new business development, sales, client relationships and marketing efforts. Dexter brings with him over a decade of sales, marketing, and leadership experience. His expertise and passion for growth will play a pivotal role in expanding service offerings and enhancing Fettig. jobs’ ability to provide highquality talent to Grand Rapids companies.

ADVERTISING SECTION

COMPANIES ON THE MOVE To place your listing, contact Debora Stein at dstein@crain.com ACQUISITIONS

OnPoint Employment Solutions Grand Rapids, MI 616.784.8000 onpes.com

OnPoint Employment Solutions is excited to announce its acquisition by Minutemen Staffing, one of the Great Lakes region’s most respected staffing and HR service providers. We’re excited for this partnership as both companies share the same mission: to exceed our clients’ expectations through commitment, ethics, and integrity.

Minutemen provides contingent staffing, direct hire, PEO, and workers’ compensation services for nearly a quarter million employees across five states.

And yet for all its size, the family-owned company remains committed to the same one-on-one customer service that set it apart from its competitors when it was founded in 1967.

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PANHANDLING From Page 1

The disorderly conduct changes would prohibit loitering in doorways in some cases, and prohibit accosting another person near ATMs, vehicles, outdoor dining areas or special events.

The city commission held several hours of public comment on July 11 but did not vote on the ordinance changes.

Public hearings on the proposals drew a mix of opinions from residents, business owners and local advocates on how the city should proceed in addressing a rise in claims about aggressive panhandling and public clutter caused by the unhoused population.

“Our city is at a critical point,” Mike VanGessel, CEO of Rockford Construction Co., said during the hearings. “As chair of the municipal council, which represents 130 businesses downtown, I’m concerned about our future. Businesses and residents are now considering the value of our city as a proposition where they relocate.

This is not a simple issue with the unhoused. … The challenges are complex so the solutions are not simple.”

However, some downtown business owners called the ordinance changes unnecessary and an at-

HOUSING From Page 1

He said he initially partnered with Jerome Abood on API Commercial’s project announced last year to convert a Baymont by Wyndham hotel in Wyoming into 150 apartments, but he has since exited that deal because of a difference in vision. Abood did not immediately respond to a request for comment.

Cartwright began developing real estate in 2016 and recently noticed interest from “a lot” of investors who wanted to place funds with him, so he co-founded Vilicus Capital in 2021 and completed his first multifamily deal that year.

“In 2021, the secret got out on multifamily. Everybody wanted to buy multifamily,” he said. “With those low interest rates, the rising rents and the housing shortage, (with) multifamily, the cap rates compressed, the prices went straight up, and everybody was looking for a deal, and I couldn’t find a great deal.”

An ‘aha moment’ Cartwright attended a conference later that year during which a fellow attendee turned him on to the idea of hotel conversions. He was initially hesitant because he felt there would be a high bar for selling investors on the risk associated with leasing up former hotels in commercial districts.

But then he did the math and was “blown away” when his calculations showed low costs and a high rate of return because of the demand for affordable housing.

“I was shocked. I remember

tempt to regulate what amounts to growing pains for the state’s second-largest city.

Jon Bailey, co-owner of Lantern Coffee Bar and Lounge, has worked downtown since mid2016. He told Crain’s Grand Rapids Business that while his business sees nuisance behaviors “all the time,” he has not noticed an increase in issues the city is aiming to address.

“I don’t think what we’re experiencing now is any different than the past few years,” Bailey said. “I don’t think the ordinances are the route to go. We’re not seeing an increase in these issues or an increase in unhoused people. I think maybe as Grand Rapids grows, people downtown might be paying more attention to these things or may not be used to people asking them for money.”

If people are harassing customers or staff at Lantern Coffee, staff are trained to first attempt to handle issues themselves, then call the city’s Homeless Outreach Team, downtown ambassadors or the non-emergency police line, Bailey said. Since operating at 100 Commerce Ave. SW, Bailey recalled having to make just one 911 call to deal with an issue at his business.

Susan Coombes, co-owner of gift shop and gallery Periwinkle Fog at 125 Ottawa Ave. NW in the Ledyard Building downtown, said while her customers have rarely

been harassed, she still supports the ordinance amendments.

Coombes cited the clutter caused by the homeless population elsewhere downtown and is aware of how harassment has generated concerns among other businesses.

“Being a small business owner, even though I don’t see it on the street in front of my store, I do have some customers coming in and saying they didn’t feel as safe as they would like to downtown,” Coombes said.

thinking there must be an error in my Excel spreadsheet somewhere, because the returns were just so outrageous,” he said.

The more he researched it, the more he observed developers buying up Class C housing on the lower-income end of the spectrum and remodeling it for market rate.

With so much Class C housing disappearing to be converted to Class A and Class B rentals for those priced out of the starter homes market, Cartwright saw an opportunity to specialize in affordable housing.

“There’s more demand than ever for Class C — it’s got the highest occupancy, it’s got the highest collection rate and essentially, it’s not economical to build it anywhere unless you take some kind of government subsidies, which come with all kinds of restrictions, and they are inherently scarce,” he said.

“And so, I thought, ‘(Converting hotels) is just a phenomenal opportunity to create more workforce housing and do well for the investors, do well for the community, and not rely on any kind of public funds or government incentives.’”

Concurrently, he noticed that with the hospitality industry struggling post-COVID, some of the older hotels and motels were no longer performing well. The owners of hospitality facilities typically remodel their properties to franchise standards every five to seven years, but “at some point in time, they just build new buildings.”

“And so, you’ve got some of these older motels that are struggling financially, they’re not worth remodeling, they attract that transient crowd, there (is) a lot of crime, they’re not big tax revenue centers for the community,” Cart-

wright said. “We can use those buildings to create affordable housing.”

Cartwright said he started with projects in Houston because there are no zoning laws in that city, and it’s “a pretty business friendly environment.”

He said he expects challenges in finding the right municipality locally, but he has about “a dozen” Grand Rapids-area properties in mind that could fit the bill.

“You’ve got to find a property where you’re able to add the kitchens if they don’t have them already,” he said. “You’ve got to find a property where the ownership is willing to take the franchise off the hotel (and that can involve some early termination fees; they call them liquidated damages). And then, you’ve also got to find a municipality that is open to allowing you to change the use of the property.”

‘We’ve come too far’ Sam Cummings, managing partner at Grand Rapids-based CWD Real Estate Investment LLC and a major downtown property owner, has been a vocal advocate for the city commission to take action.

Cummings cited a “marked increase” in problematic behaviors downtown, causing visitors and residents to fear for their safety.

“This isn’t about where people live,” Cummings said in an interview. “It’s about how people behave. We have a group of folks that are making it difficult for everybody to use public infrastructure because they’re making people feel unsafe, they are threatening and overtaking public infrastructure by camping on it.”

Cummings said his tenants have reported an increase in public defecation and urination, as well as ag-

What the planners say Local planning staff members shared mixed reactions to the feasibility of such projects within their municipalities.

Nicole Hofert, director of community and economic development for the city of Wyoming, was enthusiastic about the Baymont hotel conversion project back when the city approved Abood’s project proposal on Nov. 15.

“What we’re seeing nationally is the conversion of hotels into affordable housing, and I think this is a really great example of that type of project,” she told Crain’s Detroit Business at the time.

Kristin Turkelson, planning director for the city of Grand Rapids, said she’d be “hard-pressed” to

gressive and disrespectful behavior.

“We deal with one of these issues at least once a day, and my tenants do as well,” said Cummings, whose prominent downtown properties include the Ledyard, Aldrich Place, the Calder Plaza Building and the PNC Bank Building. “They’re tired of it, and unless we do something, we will see people making different choices about where they locate. We’ve come too far to do that.”

Sharing similar concerns, VanGessel said during the meeting Rockford Construction’s property management team has been fielding “unreasonable requests” for cleaning and safety concerns.

As business leaders worry about Grand Rapids’ ability to retain employers and attract visitors, the ACLU of Michigan recently wrote to city commissioners and officials to express “concern and opposition” to the proposed ordinance amendments, claiming the moves unfairly target behaviors associated with the homeless population.

“In short, if the true concern is dealing with inappropriate behaviors, existing laws provide a legal avenue for addressing them. This would ensure we are not singling out the unhoused for punishment,” the ACLU letter reads, in part.

Housing nonprofit and advocacy

groups are also split in their support of the ordinances. Leaders from Housing Kent and the Grand Rapids Area Coalition to End Homelessness oppose the amendments and how they would be enforced. However, leaders at Grand Rapids-based transitional housing nonprofit Exodus Place back the proposals.

“This is an act of compassion to approve the proposed amendments because allowing people to panhandle and loiter removes the motivation to find a lasting solution,” Exodus Place President and CEO Robb Munger wrote in a July 11 letter to the city.

The latest proposals stem in part from a December 2022 letter from the Grand Rapids Area Chamber of Commerce to the city commission.

The letter was co-signed by more than 100 business owners and community members and called on the city to address gaps in public safety downtown. The letter cited “ongoing concerns from residents and employers related to harassment, public defecation, trespassing, assault and other disruptive behavior.”

Since receiving the letter, the city has worked with its public safety committee and to address public safety issues downtown by enforcing its current ordinances. Staff identified “gaps that still existed,” which led to the latest ordinance proposals, said Deputy City Manager Kate Berens.

think of reasons why such a conversion would have challenges with city approvals, since the zoning code allows residential in all of the commercial zone districts. In mixed commercial zone districts, those uses are allowed by right, which means a project would only require planning staff review rather than site plan or special land use approvals by the planning commission.

Although she wasn’t familiar with the national trend of hotel-to-residential conversions, Turkelson said it’s a good idea in theory.

“I can certainly see that being a good adaptive reuse project if the hotel is needing to transform into something different,” she said.

“Certainly, building codes would be one area that they would want to take a look at, because there’s different use and occupancy requirements between residential and short term.”

But, she said the main challenge likely lies in the availability of eligible properties.

“We don’t have a lot of older hotels that I would consider ripe for conversion,” she said. “There may be one or two. … I would think that most of those hotel configurations are probably in the Kentwood/Wyoming/Walker area.”

Joe Pung, senior planner for the city of Kentwood, said the zoning code there doesn’t currently allow for residential use in the commercial and office districts, so that would need to change before a hotel-to-apartments conversion would be allowed.

“We haven’t had anyone come in that I’m aware of and request this or look to do this, so it hasn’t been something that we have

looked at, at the staff level or at the city level,” he said.

Pung said he can think of probably seven hotels in Kentwood city limits, with maybe a couple that are branded as extended stay.

He added that zoning code amendments aren’t unusual. A few years ago, Kentwood worked with Wyoming to rezone a commercial stretch of Division Avenue that is in both cities’ jurisdiction to what’s called form-based code, which allows for attached multifamily.

Since then, developers built the workforce housing community City Line and approved another called The Annex.

Pung said he can’t, however, think of any hotels along that stretch that would be candidates for adaptive reuse under formbased code. If there were, it would be an allowable use to convert it to full multifamily or mixed-use apartments and commercial, he said.

Elizabeth Curcio, assistant planner for Plainfield Township, said the mixed-use zoning district along Plainfield Avenue would allow for a hotel conversion, but she can only think of one property that would fit the bill — the Plainfield Motel at 3709 Plainfield Ave. NE. In general, she said the township is considering creative methods to increase the housing stock, which is why in recent years it’s amended its zoning code to allow for more multifamily developments in commercial areas.

“We are working with Housing Next and The Right Place to try to get some traction in putting more housing in here, so that’s definitely something that we want to help facilitate,” she said. “We’re definitely open to suggestions and ideas.”

Concerns and division

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CRESTON From Page 3

and Knapp Street, a detour that takes traffic around the main business corridor.

“Whenever you have that amount of street construction projects in an area, people just avoid the area,” Lee said. “With so many streets, especially our northsouth streets being closed, it really felt like our lifeline was cut off for a while.”

Artisan gift shop Black Cat Bodega is based on the east side of Plainfield. Owner Lorin Baum said she doesn’t think the 9-month-old business has been “much helped” by the construction.

“It definitely isn’t easy to navi-

FILM

From Page 3

as Senate Bills 438-439.

The Multimedia Jobs Act would give preference to Michigan-based companies that hire Michigan residents, with a 30% tax credit for hiring Michigan residents. The legislation also specifies a base tax credit starting at 25% for in-state spending with an additional 5% awarded for the inclusion of “filmed in Michigan,” “Pure Michigan,” “Michigan Film & Digital Media Office,” and the MiFIA logo.

As well, the legislation includes a requirement that qualified Michigan vendors provide proof of a brick-and-mortar presence, inventory and full-time employees on staff. Pass-through companies and transactions would not qualify, and accountability requirements would be in place for independent verification of approved expenditures, per the bill language.

To ensure the incentives create a return on public investment rather than resulting in net costs, the credit would stay in Michigan and only benefit a Michigan company, according to Page.

As an example, Page said a major movie studio could bring in a $100 million movie project and get a $20 million tax credit. If the stu-

ADVERTISING From Page 3

our vibrant downtowns. This work is critical to land major events that drive tourism, like the 2024 NFL Draft, and can lead to worldwide recognition, like when Detroit was recently named TIME’s World’s Greatest Places of 2022.”

Dave Lorenz, vice president of Travel Michigan, the state tourism office within the MEDC, said the $15 million shortfall comes as a blow to the Pure Michigan campaign, considering signs already are pointing to a slowdown in U.S. travel spending this year and next.

“We have taken a quick cursory look at the budget, and it’s very likely we would have to cancel our plans for national advertis-

gate for customers, but it’s a much-needed update for the Creston neighborhood,” she said.

“The construction is getting ready to move over to the other side of the street so it will hopefully make getting into our parking lot a lot easier. It’s our first summer open (though), so we really don’t have anything to compare it to.”

At Kingma’s Market, a locally owned produce market and deli at 225 Plainfield Ave. NE, owner Alan Hartline said the construction has been a “headwind against our business, which was doing pretty well this year.”

While Kingma’s has run some sales and put some extra effort into marketing to attract customers during the construction project, Hartline said they haven’t really moved the needle for the

business.

As the project moves into its second phase, Kingma’s Market is preparing for its side of the street to close down, although customers can access the store from the side street Comstock Boulevard.

“I think we’ve just settled into accepting it and continuing to do our best every day to weather it,” Hartline said. “It’s our turn on the barrel, so to speak. I think we’re going to limp along with some negative bumps during this summer, which is an important selling time for us.”

Hartline noted that Kingma’s plans to take advantage of the reduced traffic to embark on an expansion project to add 15 feet along one side of the store. The project, which will give Kingma’s space for a new catering endeavor

and another cash register, was initially slated to happen this fall.

“As long as things are torn up on the road, we may as well tear up our store,” Hartline said.

Similarly, Lee at River North has been trying to turn the challenging situation into a positive by working closely with the city of Grand Rapids and fellow Plainfield businesses to help keep the corridor thriving.

“Instead of crying over it, we’ve got to pivot and figure out how we can organize and work together and get information out to people so that they know how to navigate to us,” Lee said.

“We’re not the only business that’s experiencing this. It’s our business neighbors.”

That led Lee to create and share the neighborhood construction

detour map as a show of solidarity with other nearby businesses.

“The whole point of the map and getting information out was also to say, ‘Hey, we appreciate your support of us, but we also appreciate your support of our neighboring businesses, too,’” Lee said.

Lee has compiled a roadmap with closure dates and added the names of smaller businesses along the Plainfield stretch to help point shoppers toward struggling businesses.

“We’re really looking forward to Plainfield becoming a more walkable, friendly, people-oriented street,” she said. “These street construction projects are going to help bring us there and complaining isn’t going to get the street done any faster.”

dio does not have a Michigan tax liability, it can’t use the credit. Instead, the company could sell it to another Michigan business that could buy the credits at a discount.

“We just want to make sure the money is always being reinvested here,” Page said.

Proponents also hope the tax credits will help attract and support high-paying creative and technology sector jobs that are the driving force of media content. For Page, the legislation serves as an opportunity to keep graduates and creative youth in the state instead of them going to places like Los Angeles or New York.

It’s also an opportunity for Michigan to remain competitive in the film industry.

“Michigan crews are known for being hardworking, and we’ve got some of the best locations in the country,” Page said. “I think one of the big things right now is that there are over 40 other states and cities that have a program and over 50 countries globally. We’re one of the few that do not; we’re being left by the wayside.”

Film incentives started in Michigan in 2007 under Granholm, and movies such as “Transformers: Dark of the Moon,” “Oz the Great and Powerful,” “Scream 4,” “Gran Torino,” “Whip It,” and “The Ides of March” took advantage of the program and filmed scenes in

Michigan.

After former Gov. Rick Snyder took office, his administration placed a $25 million cap on the program in 2012. The cutback led to a loss of projects such as Marvel’s “The Avengers,” which pulled out of Michigan in favor of Ohio.

Snyder later signed a bill to end the incentive program altogether in 2015.

Groups including the Michigan Chamber of Commerce and the Mackinac Center for Public Policy opposed the original tax incentive program. A Mackinac Center official considers the new plan a “tiresome rerun,” citing little evidence for economic growth compared to the dollars spent.

“We wasted $500 million on the original film incentive series. There is no independent scholarship that demonstrate programs like these are effective,” said Michael LaFaive, the Mackinac Center’s senior director of fiscal policy. “There is much academic scholarship on film incentive programs from around the country and they often show very negative results. It should be incumbent on film incentive supporters to demonstrate real evidence to the contrary before lawmakers even think about wasting more money on another failed corporate handout.”

For Josh Sikkema, co-founder of Walker-based Black Pigeon Studios and a MiFIA board member,

his experience in the film and multimedia space is a direct reflection of what the legislation aims to avoid.

“I’m Los Angeles-based and then created Black Pigeon Studios, and I feel like we’re very much the poster child of what this bill is intended for — for those that were pushed out of the state and had to follow the work,” Sikkema said.

“Now that we’re talking about incentives again and this new Multimedia Jobs Act, this is very appealing. I think we’re going to see a lot of like-minded individuals such as myself and my business partners and others that are developing studios and shooting their projects creating their music in Michigan again because they never wanted to leave in the first place.”

Both Page and Sikkema emphasized the potential economic spinoff, with sometimes dozens of local vendors contributing carpentry, hair, makeup, hospitality and other services for film projects.

Sikkema also thinks about the interns at Black Pigeon Studios and the positive message the legislation might create for the local film industry.

“That’s very inspiring for the individuals that are here, that are learning,” Sikkema said. “They can go, ‘Wow, I don’t need to go to these other places. I can stay right where I am.’”

ing,” Lorenz said. “Digital (advertising) goes around the world, but we had great plans to do some really substantive work in national marketing efforts (like TV, radio, print and billboards), so we would have to put those plans aside, in addition to a variety of other things.”

Lorenz said his office might have to make other cuts to collaborative marketing efforts with local destination marketing organizations and to diversity, equity and inclusion initiatives, as well as put on hold a planned retooling of michigan.org to make it more accessible to the blind.

“It just sets up a series of dominoes falling in the wrong path,” he said.

The Whitmer administration said the $15 million general fund allocation for Pure Michigan

aligns with general fund allocations from previous years.

The 2024 budget proposal also authorizes Pure Michigan to receive up to $10 million in local and private funds.

After legislation enacted in 2010 allowed the state to include a separate budget line item specifically for tourism promotion, the Pure Michigan budget steadily grew from $25 million in 2011-12 to a peak of $35 million in 2018-19. Whitmer used a lineitem veto in 2019 to nix that year’s planned $37.5 million allocation.

The state allocated $15 million from the general fund during the COVID-19 years of 2020 and 2021.

For the current fiscal year that ends Sept. 30, Pure Michigan got a $15 million allocation from the general fund, $15 million in fed-

eral American Rescue Plan Act funds and a $10.3 million grant from the U.S. Economic Development Administration.

Lorenz said the lower funding total for 2024 is not expected to affect Travel Michigan’s staff of about 10 people, as salaries are paid through the operations budget of the MEDC. At this point, he remains unsure how the digital ad campaigns will be affected. “(Digital) does keep awareness going, which is very important,” he said. “But with that small little screen — and most people see digital on their mobile devices — it doesn’t capture that emotional connectedness that we need, and that’s where TV and other media elements (come in) — print, outdoor, radio.”

Lorenz said he hopes to ramp

up advocacy and education efforts with the state Legislature to underscore the importance of funding tourism marketing at a higher threshold moving forward.

He noted that the latest report the MEDC commissioned showed the 2022 Pure Michigan campaign, which included a $17.5 million media spend, influenced nearly 2.1 million Michigan leisure trips and generated about $195 million in state taxes, for a return of $11.16 in state tax revenue for each $1 invested.

Lorenz said he remains hopeful lawmakers will consider providing “additional support” in the supplemental budget this fall.

“I know the industry will also be reaching out to their representatives, and I’m hoping we can get back to the governor’s original proposed $30 million,” he said.

A film crew at Black Pigeon Studios in Walker outside of Grand Rapids. | TYLER DARLAND

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THE CONVERSATION

Grand Rapids Housing Commission director leverages federal aid to address housing shortage As executive director of the Grand Rapids Housing Commission, Lindsey Reames is putting to work decades of federal housing policy knowledge to address the affordable housing crisis. After 32 years at the U.S. Department of Housing and Urban Development, Reames left her job as deputy to the deputy assistant secretary at the office of field operations in February 2021 to lead the Grand Rapids Housing Commission. GRHC is one of 120 public housing authorities in Michigan. Its job is to manage the city’s public housing stock, including acquiring housing, constructing and maintaining units, and administering project-based or Housing Choice Vouchers from HUD. Reames leads a staff of about 62 people and works with a board of five city managerappointed volunteers. Together, they oversee 4,200 units of public housing. | By Rachel Watson What is GRHC working on that will benefit lowincome renters?

One of those things is the project-based vouchers. We can take some of our Housing Choice Voucher allocation and be able to assign it to units that already exist in the community to make them more affordable. …

A commitment of project-based vouchers also triggers some additional points under other funding applications, like the Low-Income Housing Tax Credit application, so it kind of builds on itself.

A couple other things specific to Grand Rapids is continuing to do outreach to landlords who haven’t participated in the program or who had bad experiences, and continuing to make sure that our fair market rents are where they need to be.

(GRHC in March worked with HUD to raise fair market rents for housing vouchers by 9% for 2023 on top of an 18% increase at the end of 2022, to keep pace with inflation and incentivize more landlords to house voucher holders.)

MTW is a special designation that HUD makes available to certain housing authorities; you have to compete for it. Out of about 4,000 housing agencies, we are one of only 130 agencies in the country that currently have that designation.

Right now, we’re meeting with community partners (the Coalition to End Homelessness, Housing Next, Housing Kent, Community Rebuilders, Family Promise of West Michigan, Meals on Wheels and AYA Youth Collective) to talk about, ‘What’s on your wish list for populations that we could serve or ways that we could serve differently?’ We’re in that process right now of getting feedback, and then the next step is designing programs.

Lindsay Reames, executive director of the Grand Rapids Housing Commission. | COURTESY PHOTO

Are there other housing authorities in Michigan that have the MTW designation?

What does raising fair market rents accomplish?

When the fair market rents are established, we, the housing commission, can pick a payment standard anywhere from 80% to 110% of that fair market rent.

Even with a payment standard of 110%, it still wasn’t competitive.

The market was still getting $100 to $200 more a unit than what our voucher dollars would pay given HUD’s fair market rents.

That additional increase of 9%, on top of the already 18% we had, gives those voucher holders a dollar amount for rentals that is more competitive in the market. They can go to a landlord, and the landlord will know that we are able to pay, let’s just say, $1,200 a month for that rental unit, which is what the going rate in the market is, versus what we might have been able to pay a year ago, which was only $1,000.

Once the rates were raised, did GRHC’s housing placement success rate increase?

We know that it’s taking less time, but we haven’t completed the analysis because of some system updates we’ve been doing. But

“Right now, we’re meeting with community partners to talk about, ‘What’s on your wish list for populations that we could serve or ways that we could serve differently?’ We’re in that process right now of getting feedback, and then the next step is designing programs.” yes, we believe that it has.

We have also implemented the Housing Barrier Fund, which has two components. One is a landlord incentive, and one is opportunities to assist program participants with barriers that are keeping them from being housed, whether that is security deposit money or utility money that they owe a previous utility company.

Between the new FMRs and the Housing Barrier Fund, (and) increases in project-based (voucher) waiting lists … I believe that we are going to see success rates increase.

What else is GRHC working on?

The (Moving to Work) designation (GRHC received from HUD last fall) is giving us some additional flexibility to do things like design programs that serve populations.

For example, effective July 1, we now have a homeless preference.

What that means is that for our vouchers that … come back to us to reissue to another program participant or another household when people have graduated from the program, 25% of the (20 to 25 vouchers) we get back per month, we will … set aside … (for) families who are homeless.

There’s only one other, and that’s Ann Arbor. HUD asked for some additional allocation of agencies who could receive the designation last year. Congress said, ‘Yes, we’re going to grant you another 100 slots, but you have to identify some very specific things that you’re going to evaluate and measure as it relates to successes,’ so HUD designed cohorts.

What the Grand Rapids cohort has chosen is we’re going to do a savings account program. We are going to automatically deposit funds into savings accounts for a small number of pilot families to see if having that impacts the ability of our most vulnerable families to stay housed.

What else is top of mind for you?

Continuing to work with other affordable housing providers and service providers in the community to make sure that we’re maximizing efficiencies and minimizing duplication of effort, continuing to increase opportunities for the households that we serve, continuing to seek funding opportunities to redevelop some of our assets to do some rehabilitation work and address some of the capital needs. We’re always searching for more Housing Choice Voucher opportunities through HUD. (And) making sure we’re helping more families, whether that’s (through project-based vouchers) or if it’s addressing the barriers through our Housing Barrier Fund.

President and CEO KC Crain Group Publisher Jim Kirk Executive Editor Mickey Ciokajlo, mickey.ciokajlo@crain.com Editor Joe Boomgaard, joe.boomgaard@crain.com Managing Editor Andy Balaskovitz, andy.balaskovitz@crain.com Special Projects Editor Tim Gortsema, tim.gortsema@crain.com Director of Audience and Engagement Elizabeth Couch, elizabeth.couch@crain.com Audience Engagement Editor Matthew Pollock, matthew.pollock@crain.com Creative Director Thomas J. Linden tlinden@crain.com Associate Creative Director Karen Freese Zane, kfreese@crain.com REPORTERS Kate Carlson, real estate, kate.carlson@crain.com Abby Poirier restaurants, retail and agribusiness, abigail.poirier@crain.com Mark Sanchez health care and finance, mark.sanchez@crain.com Kayleigh Van Wyk manufacturing, technology and law, kayleigh.vanwyk@crain.com Rachel Watson residential real estate and statewide tourism, rachel.watson@crain.com Danielle Nelson research and data, danielle.nelson@crain.com Senior Vice President of Sales Susan Jacobs, susan.jacobs@crain.com Advertising & Event Sales Director Jill May, jill.may@crain.com Advertising Consultants Shelly Keel, shelly.keel@crain.com Custom Content Manager Clare Pfeiffer, clare.pfeiffer@crain.com Content Marketing Specialist Allie Jacobs, allie.jacobs@crain.com Michigan Events Director Samantha Flowers, samantha.flowers@crain.com Marketing and Events Coordinator Matthew Chaffee, matthew.chaffee@crain.com People on the Move Manager Debora Stein, dstein@crain.com Prepress/Production Director Simone Pryce, spryce@crain.com Circulation and Customer Service PO Box 175 Congers, NY 10920 833-830-7446 toll free 845-267-3031 local line (used for any foreign calls) customerservice@crainsgrandrapids.com

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