Crain's Grand Rapids Business, July 22, 2024

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Saugatuck short-term rental owners decry upcoming cap

They fear new lottery method will clear out tourists and reduce property values

More Saugatuck vacation rental owners soon may be listing their properties for sale over concerns the resale value will dip when the city’s new shortterm rental cap takes e ect later this year.

Michele Chitwood, of Green-

wood, Ind., said she and her wife met with a Realtor on July 11 to start the process of listing their vacation rental just north of downtown. Chitwood has owned and operated short-term rentals in Saugatuck since 2010.

e couple’s decision follows the Saugatuck City Council’s 4-2 vote on July 8 to set a 20% cap on

short-term rentals in R1 residential zone districts. If the city at any point dips below the number of allowable short-term rental licenses for R1 districts, applicants in the queue will be selected to receive licenses via a lottery system.

Despite pushback from shortterm rental owners, city o cials say the long-studied policy change

nds the “right balance” in regulating short-term rentals. Tourism-reliant communities across Michigan are struggling with the competing interests of private property rights and the potential unintended consequences of short-term rentals’ e ect on the

Flavor maker taps AI for unbiased testing

Kalsec uses tech to understand how people perceive food, avors

By using a “disruptive” arti cial intelligence-fueled technology, a Southwest Michigan-based food ingredients manufacturer aims to better understand how people react to and experience avors. e new Italian technology has the potential to help Kalamazoo-based Kalsec Inc. reduce human error and produce more

consistent avor products, which is important when taking into account regional di erences and controlling for other variables among its panel of sensory analysts.

In particular, Kalsec aims to use the new T-Box technology from imus, an Italian neuroscience company that creates food and beverage solutions, to improve its approach to formulating

heat products like chili pepper extracts, one of its specialties. Currently, Kalsec uses a human sensory panel whose members are trained to taste products and describe them qualitatively and quantitatively, assigning value to every attribute of the avors they are experiencing.

“Often, we want to measure

Michigan

Aaron Miller brings experience in corporate development, M&A to new role

Global insurance brokerage and ntech company Acrisure LLC has recruited a new chief nancial o cer as the growing rm explores going public. Grand Rapids-based Acrisure said in a July 8 statement it hired Aaron Miller as its new CFO, effective Sept. 1. Miller will report to Acrisure chair and CEO Greg Williams. He replaces current CFO Jason DeYonker, who will transition to the role of Acrisure’s chief acquisitions o cer and adviser to Williams, according to a statement. DeYonker joined Acrisure in September 2021 as chief acquisitions o cer and president of real estate services, later adding CFO duties in August 2023. Miller previously was head of nancial services in the private equities department at the Abu Dhabi Investment Authority, where he led deal origination and portfolio management within the nancial services sector.

e Abu Dhabi Investment Authority became one of Acrisure’s largest shareholders in May 2022 when one of its subsidiaries led a $725 million equity raise for Acrisure that increased its valuation to $23 billion.

Acrisure described Miller as “a trusted advisor to Fortune 500 CEOs and boards,” citing his 20plus years of experience in corporate development, strategy

The lakeshore community of Saugatuck has set a 20% cap on short-term rentals in designated residential areas. | GETTY IMAGES
A Kalsec sensory analyst wears a T-Box, an AI-fueled headset by Thimus that measures how the brain perceives food and avor. COURTESY PHOTO
Aaron Miller
See RENTAL on Page 45
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Developer plans several new projects at Health Village

The Granger Group eyes up to 250,000 square feet of construction

Commercial real estate developer The Granger Group plans to proceed with a trio of projects on University of Michigan HealthWest’s hospital campus south of Grand Rapids in Wyoming.

Additional independent senior living units, multifamily residential, more medical offices and retail spaces, a restaurant, and a site for a year-round farmers market are among the uses that The Granger Group has been planning

for company-owned parcels surrounding the hospital.

The projects have always been part of The Granger Group’s longterm vision for the 180-acre Health Village that the company developed over the years around the former Metro Health Hospital that opened in 2007. The 208-bed hospital anchors the Health Village, along the north side of the M-6 freeway at Byron Center Avenue and south of Gezon Parkway.

Ann Arbor-based University of Michigan Health acquired Metro

Health seven years ago and The Granger Group has been planning the latest projects to fit with the health system’s long-term growth plans, said Jason Granger, who leads investments for the Granger family office.

“It’s always been the plan. It’s just been making sure that U of M’s vision and our vision coincide together for the rest of the community. That’s been the most important piece,” Granger said.

East Grand Rapids’ downtown is on the cusp of entering its third act

Greg Gilmore remembers growing up in East Grand Rapids visiting the Rose’s hamburger stand and marina in the 1960s when his father, John Gilmore, was hard at work trying to bring a Jacobson’s department store to town.

Now, the younger Gilmore, second-generation owner and CEO of the Grand Rapids-based Gilmore Collection restaurant group, is watching plans roll back into motion that could inject new life into the site where Jacobson’s once stood.

Scott Wierda and Brian DeVries, doing business as Gaslight Investors LLC, went before the East Grand Rapids Planning Commission on July 9 seeking approval for their plans at 515 Lakeside Drive SE and 2255 Wealthy St. SE, in the city’s Gaslight Village business district. The planners opted not to

vote on the project immediately and instead will gather more information on the developers’ new proposal for housing and commercial space on a mostly vacant

lives adjacent to the proposed site at Lakewood Hills Apartments, where there’s “always a waiting list” to get in, he said.

“More (housing) in East Grand Rapids would keep a lot of people from moving out of the community and I think it’d be great for the community to have more residential right in that area.”
Greg Gilmore, owner and CEO of the Grand Rapidsbased Gilmore Collection restaurant group

8.6-acre lot.

Gilmore, who owns Rose’s Restaurant across the street overlooking Reeds Lake, said he’s eager to see how the housing plan could unfold. His elderly mother

Ottawa Impact’s power at stake in primary vote

Far-right political faction gained majority on county board with sweeping win in 2023

The Michigan West Coast Chamber of Commerce hopes to serve as the nonpartisan, “sane center” in the upcoming Ottawa County primaries following nearly two years of “turmoil” and less-than-predictable local government.

That’s according to Jodi Owczarski, who has served for more than seven years, including the past two as president and CEO, with the organization that represents businesses in the greater Holland and Zeeland area.

While political and social fragmentation has been growing on a national scale, Ottawa County has represented a hotbed since January 2023. That’s when the far-right political faction known as Ottawa Impact took office with a large majority on the 11-member Ottawa County Board of Commissioners.

“More (housing) in East Grand Rapids would keep a lot of people from moving out of the community — empty-nesters and such — and I think it’d be great for the community to have more residential right in that area,” he said.

The developers, who have long worked together as Jade Pig Ventures, want to construct seven new buildings that would include 180 units of

A key storyline emerging ahead of the Aug. 6 primary is whether Ottawa Impact can maintain its county board majority, which already has narrowed over the past 18 months as members broke away or were recalled. Ottawa

Impact also is affiliated with candidates in contested Republican primary races for county prosecutor, sheriff and treasurer.

Indeed, nine of the 11 county commission seats in which Ottawa Impact is engaged this election feature GOP primaries, pitting an Ottawa Impact-backed candidate against a more moderate Republican challenger. Whether or not that represents a referendum against Ottawa Impact, Owczarski said it’s a “very intentional” move by citizens to re-engage in politics following the group’s controversial approach to governing.

“The last year and a half, things have been in turmoil. It’s a concept that I think has been pretty unfamiliar along the lakeshore,” Owczarski said. “Whether you are a Republican or Democrat, it seems like the government structure here has been pretty stable over time, predictable. … We certainly don’t feel that same sense (now).

“This isn’t something that’s limited to just our area. From a chamber and industry

The Granger Group plans multiple new projects at the Health Village in Wyoming, which is anchored by University of Michigan Health-West’s hospital that opened in 2007 as Metro Health Hospital. | COuRTESy PHOTO Gaslight Village district would
Pro- and anti-Ottawa Impact signs in Ottawa County. MARK SANCHEZ, CRAIN’S GRAND RAPIDS BuSINESS

Mayoral frontrunners focus on housing, public safety

The race to replace outgoing Grand Rapids Mayor Rosalynn Bliss is shaping into a matchup between a pair of former city commissioners who each say public safety and housing are key policy priorities.

A field of four candidates is set for the Aug. 6 primary to narrow the field down to two contenders who will replace the term-limited Bliss.

The nonpartisan field features Hailey Lynch-Bastion, Steve Owens, Senita Lenear and David LaGrand, who bring varied levels of government experience. Lenear and LaGrand each previously served on the city commission.

Lynch-Bastion describes themselves as a philosopher and artist on their campaign website, with goals that include helping the homeless population and creating more gardens across the city.

Owens served two tours in Afghanistan in the U.S. Marine Corps., according to his campaign website, and his platform includes opposition to using tax revenue for Grand Action 2.0’s amphitheater and soccer stadium projects. Owens also supports incentivizing businesses to provide onsite child care for employees, and incorporating more mixed-use zoning to help drive down the cost of housing.

LaGrand has garnered the most endorsements from local leaders, organized labor and business

groups ahead of the primary. If elected, he said he plans to hold weekly standing town hall events that will focus on policy issues such as policing, housing and neighborhood development, he told Crain’s Grand Rapids Business.

“People are really tired of hyper-partisan fighting, so I really hope to be a consensus builder and uniter as mayor,” LaGrand said.

LaGrand is a Grand Rapids native and an attorney. He previously served as assistant prosecutor in Kent County, a Second Ward Grand Rapids city commissioner, and three-term state representative. He unsuccessfully ran for the state Senate in 2022, losing the 30th District seat to Sen. Mark Huizenga.

LaGrand has ownership in several properties and businesses across West Michigan, including Long Road Distillers LLC.

The lack of housing has been a “forefront issue in my mind,” LaGrand said, adding that he has talked to many advocacy groups and policy experts to study the issue.

“There are a lot of strategies we have to employ here,” LaGrand said. “Complex problems always take complex solutions — there will not be one thing, there will be 20 things we have to do. The other thing that’s worth pointing out is I really think we have to have a regional response. It’s not a Grand Rapids-specific problem, this has to be addressed regionally.”

LaGrand also said he would work with law enforcement to improve policing practices and out-

comes if elected.

“I’m a big fan of our current police chief, so the fact that something is not implemented today doesn’t mean it’s not on his radar or the city manager’s radar,” LaGrand said. “We can always do better with policing. There are situations where we want to encourage our police to maximize the safety of everyone involved, which means examining policies to make sure we get to those goals rather than maximizing the number of arrests.”

Bliss has endorsed LaGrand to take her place. LaGrand has also gained endorsements from state Senate Majority Leader Winnie Brinks, former Grand Rapids Mayor George Heartwell, state Rep. Rachel Hood, several current city and county commissioners, the Grand Rapids Area Chamber of

Commerce’s political action committee, the Grand Rapids Firefighters Local 366, Teamsters Local 406, UAW-CAP Region 1D, and the Michigan Laborers District Council.

Lenear said she hopes to continue some of the work she started as a Grand Rapids city commissioner representing the Third Ward on the city’s southeast side, including driving funding to the Third Ward Equity Fund, which she helped establish.

“I would like to first of all fund the Third Ward Equity Fund to the degree it really can make meaningful change, and look at other areas of our city where there is also disinvestment,” Lenear said. “Our city deserves every neighborhood and business district to have the same investment and care as other parts of the city.”

Lenear grew up in Grand Rapids starting when she was 9 years old, and previously served on the Grand Rapids Public Schools Board of Education and the city commission. She co-owns Genesis Consulting Group with her husband, Dallas Lenear, and previously worked in community relations and human resources at Blue Cross Blue Shield of Michigan.

Lenear also hopes to grow the efforts of the Safe Alliances For Everyone (SAFE) Task Force, which is an anti-violence initiative she serves on to help reduce violent crime in the city and provide services to young adults.

“We have been able to pour in more than $600,000 into small grassroots organizations who are making impacts and reducing violence in our city and I’d like to see how we can expand SAFE and implement all the components of SAFE,” Lenear said.

Lenear also was part of a group of city commissioners in 2014 that formed the Great Housing Strategies review of housing issues across the city. She is supportive of policy changes that attract developers to create more housing and believes the issue needs to be tackled regionally.

“We are a landlocked city so we don’t have a whole lot of space in our city where you can build neighborhoods of housing,” Lenear said. “With infill (development) it’s important for it to reflect the character of the neighborhood.”

Voters to decide early childhood development funding

A property tax levy that supports early childhood services in Kent County is on the Aug. 6 ballot for renewal with the backing of a leading business group that views the issue as supporting a future workforce in Kent County.

The 0.25-mill, six-year renewal Ready by Five levy that appears on the countywide primary election ballot would generate nearly $8.8 million in the first year, if renewed by Kent County voters.

Since Kent County voters first approved the tax in 2018 for six years, the revenue the Ready by Five millage generated has provided funding to about 20 community organizations annually that run more than 30 different early childhood services. Kent County commissioners last fall awarded more than $11 million to 18 community organizations that operate 34 programs. The funding runs through September.

The Grand Rapids Area Chamber of Commerce first supported the millage six years ago. The chamber’s board of directors unanimously endorsed this year’s renewal and urges members to support the Ready by Five millage as a long-term investment in workforce development starting at a young age.

“The business community recognizes the importance of early childhood education and well-being as critical to building a strong community and a strong talent pipeline,” said Andy Johnston, senior vice president of advocacy and strategic engagement.

“Early childhood education is important because it’s what creates a great start. The research is irrefutable that having healthy babies and getting kids prepared for kindergarten leads to better outcomes,” Johnston said. “It builds a stronger talent pipeline and a healthy and prepared workforce, and that will be our competitive advantage in the future.”

The proposal on the primary election ballot asks voters whether to renew the millage levy “for the purpose planning, evaluating, and providing services to persons through age 5 and their parents for early childhood development, and services to improve (the) quality of childcare and to increase public information regarding available childcare.”

Kent County voters first enacted the Ready by Five millage in the November 2018 general election. The ballot question won with 56.7% of the vote, a margin of 13.4 percentage points.

First Steps Kent administers the Ready by Five grants on behalf of

Kent County. Funding requests from organizations are reviewed by a resident review board that recommends grant awards to county commissioners for final approval.

The revenue from the levy goes for services in four categories: Parent education and support, healthy child development that includes screenings for developmental disabilities and delays, early learning outreach, and assistance to navigate the early childhood system, such as finding daycare openings in Kent County.

The funding does not go to directly support or subsidize child care or preschool.

In 2023, early-childhood services supported by the Ready by Five millage served more than 13,600 individuals and families, an increase of 1,200 from 2022.

Nearly 60% of the families benefiting from services the Ready by Five millage supports were from historically marginalized groups, and 35% were in households with incomes below $40,000 a year, according to an annual report from First Steps Kent.

Investments in early childhood development services are intended to assure that “our children are healthy and able to learn by the time they reach school,” First Steps Kent President Jennifer Headley-Nordman said.

“It’s really about what kind of programs and services are going to create healthy environments and also set a child on the right path for being ready to learn by the time they hit kindergarten,” she said. “It’s very difficult if a child falls behind to be able to catch up.”

Earlier this year, First Steps Kent led a push to nearly double the Ready by Five millage, which could have led to up to $20 million annually over the next six years. However, the Republican-majority Kent County Board of Commissioners resisted the request, based in part on what leaders said was a lack of data on the program’s effectiveness because of pandemic-related disruptions.

Polling that First Steps Kent conducted last fall indicated that the Ready by Five millage has even broader support today than when it passed in 2018, Headley-Nordman said. Despite that showing, a campaign committee is “running a full campaign” to promote voter passage of the renewal, Headley-Nordman said.

The Comprehensive Therapy Center playgroup. | FIRST STEPS KENT/ISABEl MEDIA STUDIOS
David LaGrand and Senita Lenear | COURTESy PHOTOS

Lodging tax proposal would generate an additional $8M

Kent County voters will be asked on Aug. 6 whether to approve a visitor-funded lodging tax that could raise an additional $8 million in the first year for several planned “destination assets.”

Under legislation signed by Gov. Gretchen Whitmer on April 2, Kent County is one of eight counties that can raise its lodging tax up to 8% to fund entertainment facilities such as the planned Acrisure Amphitheater, soccer stadium and aquarium.

If voters approve an increase of up to 8% in the primary election, the Kent County Board of Commissioners would then consider amending the lodging ordinance and raising the tax up to 8%. It would go into effect Jan. 1, 2025.

Kara Wood, executive director of Grand Action 2.0, the group leading the development of the amphitheater and soccer stadium, said if the proposal passes, Grand Action would likely ask for most of the funding to go toward the soccer stadium project.

“It’s looking like it’s roughly about $100 million that (is left to be raised) for the soccer stadium and approximately $20 million for the amphitheater,” she said, noting the funds would back bonds over time to pay off debt on the facilities.

“It would help to fund those destination assets that Kent County wants to provide not only to its residents, but also to visitors,” Wood said.

Excise tax

The county’s lodging excise tax, which has been set at 5% since 1989, is levied on hotels and motels that lodge guests for less than 30 consecutive days. The 5% levy is forecasted to generate $13 million in 2025.

If the measure passes and the board raises the tax by 3%, it could generate an estimated $8 million in additional revenue in 2025, said Kent County Assistant Administrator Lori Latham.

Latham said the total tax on a hotel room in Kent County would rise from 15% to 18%, which includes a 6% sales tax, a 4% marketing assessment provided to the Kent County convention and visitors’ bureau Experience Grand Rapids, the current 5% county tax, and the 3-percentage point hike.

According to Experience Grand Rapids, which backs the measure, the average daily room rate across Kent County was $123.82 last year. The proposal would increase that cost by less than $4 per night, the group said.

Wood said backers do not expect the increase — which could push Grand Rapids’ lodging tax rate above several Midwestern cities’, including Chicago’s at about 17% — to hamper Grand Rapids’ visitor attraction efforts.

“We did talk about that at length,” she said. “We wanted to make sure that we weren’t putting ourselves at a disadvantage when it comes to the competitiveness of visitor travel and business travel, and we feel as though it’s not going to have a negative impact on the convention business or tourism and travel.”

The ballot initiative is supported by leaders and business groups including Mayor Rosalynn Bliss,

The Right Place Inc., the West Michigan Sports Commission, AHC Hospitality, ASM Global and the Grand Rapids Area Chamber of Commerce.

No formal groups have emerged to oppose the measure, despite some opposition from individual commissioners — including some who expressed an interest in investing in projects outside of downtown — when the county deliberated over the issue.

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Grand Action 2.0 is simultaneously developing the Acrisure Amphitheater (right) and a soccer stadium in downtown Grand Rapids. PROGRESSIVE COMPANIES

Adventure course manufacturer expands globally

A 35-year-old West Michigan manufacturer specializing in outdoor recreation equipment and attractions is eyeing more in-state growth while tapping into global markets just catching on to its products.

Allegan-based RCI Adventure Products makes and installs indoor and outdoor ropes courses, ziplines, climbing walls and mazes, filling a manufacturing niche in an otherwise diverse and growing outdoor recreation economy. In Michigan alone, outdoor recreation supports nearly 120,000 jobs and contributes $12.4 billion to the state’s gross domestic product.

Most recently, the manufacturer is behind a three-story indoor ropes course at an $80 million expansion that launched in late 2022 at Frankenmuth-based Bavarian Inn Lodge’s Bavarian Blast Waterpark.

CEO Jim Liggett, who founded RCI in 1989, said the Frankenmuth ropes course installation is slated to be installed in September after a few construction delays.

“The Bavarian Inn is going to have a great ropes course with Sky Rails on it that’s going to be indoors, so that’s really fun,” he said.

The Sky Rail is one of RCI’s patented products. It’s a rigid zip track that seamlessly integrates into RCI’s patented Sky Trail steelframed high ropes course structures, allowing users to transfer onto it without having to unhook and rehook harnesses. The zip

lines have no “sag” in the metal track like traditional zip lines do, allowing them to stretch safely between buildings or over water.

RCI’s other product lines include smaller Sky Tykes play equipment, Clip ‘N Climb indoor self-belay climbing structures, Adventure Trail “net play” courses, and Amaze’N Mazes indoor and outdoor mazes.

Liggett said the ropes course planned at Bavarian Blast Waterpark exemplifies the “niche” indoor and outdoor recreation markets RCI has tapped in Michigan and around the world during the past few decades.

Early on, when RCI was making wooden ropes course structures, the company did a lot of summer camp installations in northwestern Michigan, he said. Since making the shift several years ago to steel structures for greater durability, RCI is doing more installations for entities with larger budgets. The company generates $20 million in annual revenue and employs 70 people at locations in Allegan and Destin, Fla., as well as overseas in London and Malaysia.

The company’s products are increasingly in demand at zoos, malls, entertainment centers, resort chains, cruise ships, museums, aquariums, and cave and cavern attractions, Liggett said.

“Ropes courses go anywhere families go,” Liggett said. “Anywhere there’s people that just want to have fun … it’s a great place for a ropes course, and specifically ours, because they’re very easy to

operate, and they’re very safe.”

Liggett said the company has built and installed more than 800 courses in the past 20 years that have garnered about 25 million to 30 million visitors annually. Technology like computerized safety gates and decelerator systems allow the equipment to accommodate high volumes of guests with minimal staff operators, he said.

John Ball Zoo was among the earliest of the approximately 15 zoos that hired RCI to build their attractions, putting in a zip line in 2007 and an elevated ropes course in 2008.

In 2022, RCI installed about $2 million worth of ropes courses and zip lines at Binder Park Zoo in Newton Township near Battle Creek. The project, called the Charles and Lynn Zhang SkyLark Ridge, named after its lead donors

who contributed $1 million, has a separate entrance from the zoo and operates outside normal zoo hours.

Last year, RCI installed a ropes course and zip line for the Bamboo Forest Adventure Play attraction at the Fort Wayne Children’s Zoo in Indiana. The company also has completed courses at the Louisville Zoo in Kentucky and Hattiesburg Zoo in Mississippi, among others.

RCI also recently installed ropes courses at two Great Wolf Lodge locations, one in Naples, Fla., and the other in Webster, Texas.

Other popular installations include what was billed as the longest indoor zipline in the U.S. at Mall of America in Bloomington, Minn., in 2015, and a four-story ropes course at Natural Bridge Caverns in San Antonio, Texas, in 2019.

“When we do one, then they talk, and if it’s successful, then we end up doing several,” Liggett said of the word-of-mouth spread among zoos, malls, cruise ships and cavern destinations. He said RCI’s early work in those spaces has spun out into several dozen such installations around the world.

Liggett said more than half of the demand for RCI’s installations right now is coming from outside the U.S. Some of the strongest growth is occurring in the Middle East, in countries such as Saudi Arabia, the United Arab Emirates, Oman, Kuwait and Bahrain, as well as in other parts of Asia.

Saudi Arabia, for example, is trying to diversify its economy to become less reliant on oil exports amid geopolitical uncertainty. The Saudi government is investing “several billion dollars into developing the country’s entertainment offerings,” Liggett said.

“We just landed a contract to build a ropes course in every major city in the whole country,” he said of the deal with the Saudi government.

With the growth in the Middle East and Asia, Liggett said RCI is scouting locations in Asia where it can add manufacturing plants, which would be in addition to its Allegan production facility.

He said business in the state has leveled off as overseas “copycat” manufacturers have entered the market, bringing cheaper alternatives to what his company produces.

Michigan VC deals dip through first half of 2024

The $500,000 that Insight Voice Inc. raised this spring from venture capital investors will support the artificial intelligence-based company’s further growth and development.

The Grand Rapids-based Insight Voice closed in May on the seed capital round that included Ann Arbor SPARK and Comeback Capital, a Cleveland, Ohio-based venture capital firm that invests in Midwest startups.

The seed capital investment enabled Insight Voice to “accelerate our development and test marketing growth tactics,” founder and CEO Matthew Curtis wrote in an email to Crain’s Grand Rapids Business. “It has allowed us to refine our product and continue to deliver results for our customers.”

Founded in 2023, Insight Voice developed a software service that streamlines content marketing for small to medium-sized businesses. The company’s platform allows businesses to readily customize content across digital channels.

Insight Voice currently has more than 1,000 users across various economic sectors. The company’s strongest growth has come from areas such as professional services, health care, fitness and re-

tail, Curtis said.

Curtis has worked on and in startups for most of the past decade. Based on his experience, he describes the present fundraising environment as “very friendly for early-stage companies that are already experiencing growth and seeking reasonable capital raises.”

Insight Voice’s deal was among the $152.7 million raised via 32 venture capital investments involving Michigan-based companies that closed in the second quarter, according to a quarterly report from PitchBook and the National Venture Capital Association.

The second quarter deal value was 66% higher than what was invested in the state in the first quarter of 2024 and slightly above the $146.7 million invested a year earlier through 46 deals, according to the latest Venture Monitor report that indicates venture capital investing nationally showed signs of picking up.

Through the first half of 2024, venture capital investments in Michigan-based companies totaled 80 deals for $244.5 million, which compares to 105 deals for $625.1 million in the first six months of 2023.

Second quarter investments for companies in West Michigan in-

clude:

$6.6 million in later-stage capital that closed May 9 for HealthBridge Financial Inc., a Grand Rapids-area health care fintech that works with companies to provide employees an option to pay off the out-of-pocket portion of their medical bills.

$1.9 million in later-stage capital that closed May 3 for Lowell-based Orb Aerospace Inc., which is developing fully electric aerial vehicles referred to as orbs that will have the ability to travel overseas and provide aid to places experiencing crises.

$1.5 million in later-stage capital that closed June 11 for Revolin

Sports LLC, a Holland-based maker of pickleball rackets.

$1.6 million in seed capital in April for TheraB Medical Inc., an East Lansing-based medical technology company developing products for infant care.

At Insight Voice, the spring venture capital deal involved Ann Arbor SPARK, which invested $150,000 in the company supported by the Michigan Innovation Capital Fund.

Mike Flanagan, vice president of capital programs at Ann Arbor SPARK, said in a May announcement that through the investment, the economic development organization “extends beyond the Ann

Arbor region as we aim to strengthen the entire Michigan ecosystem.”

“Investing in companies like Insight Voice supports this vision, making Michigan a competitive landscape for tech innovations and economic growth,” Flanagan said.

Insight Voice’s platform works by prompting users with questions that their customers “are most likely to be interested in, enabling them to effortlessly transform their insights into audience-building content,” Curtis said. “With Insight Voice, you can create, schedule, and send all your content in one place, saving you hours of drudgery.”

Insight Voice began as a tool to help podcasters obtain questions from listeners and answer them during the show, Curtis said.

“What I realized is that the vast majority of podcasts are run by businesses working to establish authentic authority. With AI, we were able to mimic the questions that customers have for individual small businesses, allowing them to answer them quickly and share what they know with their customers in minutes a day,” he said.

Venture capital investments in the U.S. increased for the third straight quarter to 3,108 deals valued at $55.6 billion.

Lowell-based Orb Aerospace Inc. closed May 3 on $1.9 million in later-stage capital. The company was among five firms in West Michigan to raise venture capital in the first quarter. ORB AEROSPACE
An RCI Adventure Products course at Sasquatch Mountain Resort in British Columbia. COURTESy OF RCI ADVENTURE PRODUCTS

Former Reserve Wine and Food goes with Italian rebrand

Former downtown Grand Rapids restaurant Reserve Wine and Food, which closed on May 2 to undergo a redesign and concept change, will re-emerge this fall as Allora, an upscale coastal Italian concept focused on authentic cuisine.

Owned by Windquest Group, the family office for Dick and Betsy DeVos, Reserve Wine and Food operated for 14 years at 201 Monroe Ave. NW, boasting 102 wines and a full menu.

Luke VerHulst, Reserve’s executive chef and general manager who will hold the same roles at Allora, previously told Crain’s that Reserve had run its course and was set for an update.

While Allora will continue to rely on fresh, seasonal ingredients, the new menu will have a tightened focus and channel coastal Italian flavors through light pasta and seafood dishes.

“We did everything (at Reserve). There wasn’t really a style of cuisine that we stuck to,” VerHulst said. “The world was my oyster at that point. With this new concept, we’re really trying to focus on specific regions within Italy, and having more of a defined cuisine. There’s a niche that’s kind of miss-

ing in our town, as far as high-quality seafood and lighter fare, so we’re really going to try and hone in on that.”

Allora takes its name from the Italian language, in which “allora” serves as a filler word in storytelling and conversation. While it has no direct English translation, it serves the same purpose as “well” or “so” to create space and keep words flowing smoothly, according to an announcement on the plan.

VerHulst said he hopes Allora can do the same for guests.

“We’re really looking for (Allora) to be a place where stories are told,” he said. “There’s a lot of work that happens behind the scenes before a plate rolls out to a guest, and we really want to do the due diligence of telling that story to everybody who walks through the door.”

Reserve founder Betsy DeVos said in a statement that the owners aim to “offer an unforgettable experience for every guest in an intimate, comfortable setting. At Allora, every delicious bite with family and friends will be a story.”

In addition to Allora, Windquest Group also owns the CraftCo portfolio of spirits, which includes Coppercraft Distillery in Holland and a tasting room in Saugatuck. Windquest also owns several whis-

key brands, including Jos. A. Magnus Co., Fox & Oden and Flying Ace Spirits, as well as Thatcher’s Organic Artisan Spirits, a producer of vodka and liqueurs.

To help develop the new menu for Allora, VerHulst is heading to Italy this summer to learn in-person from Italian chefs.

Starting in Naples, VerHulst plans to work his way down the coast of southern Italy to Sicily, working in Italian restaurants to see how they operate and the techniques they employ. He aims to use that experience to help influence Allora.

“I’m really trying to catch the vibe,” he said. “There’s definitely a mindset in Italian cuisine that we want to bring back. (I’ll be) getting to know the people that are buying, hopefully talking to some farmers, visiting local markets, seeing what a day looks like living as an Italian, seeing what locals are eating. (I want to get) a better understanding of the cuisine as a whole.”

As the menu comes together, so will the physical space at the corner of Monroe and Lyon Street.

The space currently is completely gutted, with nothing left but cement floors and four walls. From there, the Windquest Group plans to make “major changes” to the

HIGHER DEGREES OF IMPACT

space, VerHulst said.

The new look will reflect Allora’s coastal theme, and will have a smaller footprint, seating 84 guests compared to Reserve’s 100-person capacity.

“I think it will be unrecognizable to the majority of our regular guests from Reserve,” VerHulst said.

Renovations for the new space will be done by Rockford Construction, while Grand Rapids-based Ghafari Associates LLC

will design the new interior.

“There’s a lot of mindset in West Michigan that I think mimics Italy, as far as the community engagement and farm-to-table mindset,” VerHulst said. “Michigan being the second most agriculturally diverse state in the United States, there’s a lot of produce that’s available to us. And I think that’s a very Italian ideal. Also, Michigan is a peninsula, so is Italy. We’re trying to mimic those things as much as possible.”

SEIDMAN GRADUATE PROGRAMS

The former Reserve Wine and Food restaurant is undergoing a renovation and rebranding as upscale Italian-style Allora. | MICKEy CIOKAJlO

‘Peaceful’ Frank Lloyd Wrightdesigned Usonian home has lake view

Another of the eight Usonian homes Frank Lloyd Wright designed in Kalamazoo County is on the market, and this one includes a lake view.

Mother-daughter sellers Catherine Berno and Sarah Hull listed the Winn House in Kalamazoo on June 29 for $1.85 million. Fred Taber of Portage-based Jaqua Realtors has the listing for the three-bedroom, two-and-a-half bathroom home, which was built in 1950.

The 2,469-square-foot house sits on a 2.38-acre double lot in the Parkwyn Village area of the Winchell neighborhood, overlooking Little Asylum Lake. The dwelling is named for the original owners, Robert and Winifred Winn.

Taber describes the home as peaceful above all else.

“When you walk up to the door, your first view … the way the entry door is situated, is (of the lake),” he said. “It’s just such a peaceful feeling, it’s very relaxing in the house. It’s situated so you can’t see there’s a neighborhood next door.”

Americans could afford. The homes shared common traits including low-peaked or flat roofs, cantilevered carports, built-in shelves and cabinetry, tall windows to let in sunlight and central hearths.

The McCartney House, another Usonian home in Parkwyn Village, hit the market in March and sold for $670,000 last month. Taber relisted a third residence, the Eppstein House located in The Acres, for $2.1 million after the sellers originally offered it as a pair with its neighbor, the Pratt House, as Crain’s Chicago Business previously reported. Pratt House sold in June for $1.8 million.

Taber said the Winn House has a higher list price than its Parkwyn neighbor, the McCartney, because it is larger, has more acreage and is in better condition.

Although many Usonian homes were a single level, the Winn House is referred to as a two-story home because of its fully finished walkout basement that overlooks the lawn and lake, Taber said.

Reclaiming Wright’s vision

The lake it overlooks is part of the 217-acre public Asylum Lake Preserve owned by Western Michigan University. Visitors can walk a trail on the far side of the lake to catch a glimpse of Winn House across the water.

The sellers, who declined to be interviewed for this article, invested more than $800,000 to restore the property during their decade-plus of ownership, Taber said.

The 2,469-square-foot house sits on a 2.38-acre double lot in the Parkwyn Village area of the Winchell neighborhood, overlooking Little Asylum Lake.

“You don’t get a great view of it, but you can still see it,” Taber said. Usonian homes

The Winn House is one of eight Wright-designed, Usonian-style houses in Kalamazoo County — four in Galesburg in The Acres and four in Parkwyn Village. Wright was in his 80s when he designed the subdivisions for a group of Upjohn scientists in the 1940s and early 1950s, as Crain’s Grand Rapids Business previously reported.

“Usonia” is a moniker derived from the phrase “United States of North America,” Wright’s preferred term for America, according to a book of reflections he published late in life.

Usonian homes were Wright’s attempt to produce attractive, lowcost homes that most middle-class

They hired artist, carpenter and Wright restorationist Lee Doezema of Kalamazoo-based LLDesign Build as the general contractor.

John Eifler of Chicago-based Eifler & Associates served as the architect.

The duo used a set of blueprints that came with the house to restore it as faithfully as possible to Wright’s original intent.

“I’ve never seen this many (pages of blueprints). It’s like the complete set,” Taber said. “It’s really fascinating to see. Some of them (showed) the original site drawing with colored pencil for the lawn and such.”

Taber said the full set will be passed to the next owners in the hopes they will use them to preserve the house, in keeping with Wright’s vision. Also included will be all of the built-in furniture, as well as the dining room table and chairs that are believed to be original to the home.

During the restoration process, the team redid the concrete floors and replaced mildewed plywood throughout the home. They also updated the kitchen with new appliances and replaced a floor-toceiling wall on the left side with the half-wall design included in Wright’s plans.

“If you’ve ever been to any of the (Usonian) homes, the kitchens are not very big, so a full wall kitchen with just one access door — that’d be a tiny space, a little claustrophobic,” Taber said.

The sellers also found the Winns had deviated from Wright’s original canoe-shaped design for the porch skylight, so they put one in to match the plans.

The owners also redid the electrical and some of the plumbing. Although many Usonian homes feature radiant heat, they kept the

forced-air heating system because it allows the home to have central air.

While Wright had designed the porch as more of an open-air balcony, the sellers decided to keep it enclosed as an all-season room, installing new windows that open and have full screens to let in a breeze.

The seller’s late husband designed lamps throughout the home to match Wright’s original lighting styles, as well as some “origami”-inspired patio furniture

that is not included in the listing.

In early July, Taber said he hasn’t yet scheduled showings or received offers on the home.

He said the sellers hope to attract a buyer who is serious about maintenance and upkeep of the architecturally significant property, “so that 100 years from now, someone else can still enjoy the home.”

“It’s a unique piece of artwork; it’s amazing,” he said. “This house just has its own feel, its own vibe. It’s comforting. It’s calming. It’s relaxing.”

This home in Kalamazoo’s Parkwyn Village listed for $1.85 million on June 29. | MATTHEW TRUMAN
The four-season porch overlooks the lake and features a canoe-shaped skylight added by the present owners from Wright’s blueprints. | MATTHEW TRUMAN
The sellers updated the kitchen, knocking down a floor-to-ceiling wall on the left side and rebuilding it as a half-wall, per Wright’s original vision. | MATTHEW TRUMAN
The house has a walkout basement with a yard sloping down to the lake. | MATTHEW TRUMAN

Restaurant, housing planned for Roosevelt Park

A first-time developer is working to open an authentic Cuban restaurant, along with 17 apartment units, in Grand Rapids’ Roosevelt Park neighborhood.

Juan Lopez said his Latino background and connection with the majority-Hispanic community of Roosevelt Park drove his interest in developing a project in that area.

Lopez, who is a contractor and owner of Exclusive Finish Solutions LLC, purchased 1516 Cesar E. Chavez Ave. SW for $210,000 in September 2021.

Lopez was nearly finished building out a restaurant in the

project was delayed by financing hurdles that were exacerbated by COVID-19, he said.

“I’ve been in the trades for some time now and I’ve had the spectrum of working as a subcontractor being out in the field, to dealing with a lot of the organization and managing projects,” Lopez said. “I believe I have the capability to take it a step further.”

Lopez and his family came to the U.S. in the late-1990s, and his mother, Martiza Lopez, always had a passion for cooking. This led the mother-and-son duo to pursue opening a restaurant.

The small sit-down Cuban restaurant will be named “Palmas,” and will also rely on takeout, Lopez said. They hope to add outdoor seating in the future, he added.

“I just want to proactively build our communities up and just make a better place for the community to enjoy.”
Juan Lopez, contractor and owner of Exclusive Finish Solutions LLC

space that his mother would own and operate when he realized adding apartment units to the building would be the “best option” for the project, he said. Lopez initially aimed to buy the building in 2019, but the whole

Lopez said his mother specializes in making guava pastries, which he described as similar to scones but contain fillings such as guava, coconut and cheese.

Lopez is working with Cella Building Co. to renovate the basement and first floor of the building and construct two new upper stories. Grand Rapids-based Maxam Architecture is designing the project.

The project will be all-electric

and comply with GR2030 District energy efficient standards, said Peter Skornia, Cella Building Co. president.

Site plans call for turning the basement of the building into two apartment units, as well as restaurant storage space. The first floor of the building is set to contain the 1,652-square-foot restaurant and two one-bedroom ADA-compliant apartment units. A common

area, bike storage room, mailroom and the restaurant are also planned on the first floor. Two stories of new construction are set to include six apartment units each.

Site plans call for four studio apartments, 12 one-bedroom units, and one two-bedroom unit.

No new parking would be added on site, with spaces provided through an agreement with neigh-

boring properties.

“I have been in the construction industry for some time so I’ve learned to appreciate remodeling and am just very happy I can apply that to not just something I own, but something in the area that I want to improve,” Lopez said. “I just want to proactively build our communities up and just make a better place for the community to enjoy.”

First-time developer Juan Lopez plans a new Cuban restaurant named Palmas, along with 17 apartments, at 1516 Cesar E. Chavez Ave. SW in Grand Rapids. | MAXAM ARCHITECTuRE

The Tech Week Kick-Off event will bring 1000+ of the region’s key business and community leaders together to celebrate the start of Tech Week Grand Rapids. Join us and prepare to be inspired as we welcome our keynote speaker, Stephen Dubner. Register at: techweekgr.com

First half of 2024 sees big uptick in Michigan home-building permits

Home-building in Michigan saw a large increase in the first half of the year compared with early 2023, according to new data released earlier this month.

Around the state, the first half of the year saw 5,987 single-family housing permits pulled, up about 21.6% from the same period last year, according to the Home Builders Association of Michigan trade group, which used U.S. Census data for its analysis. The uptick in home-building activity can be attributed to a “clearly evident” demand and need for housing around the state, according to Bob Filka, CEO of the Lansing-based HBAM.

“We’re in a national housing crisis,” MSHDA CEO and Executive Director Amy Hovey said during a panel at the Mackinac Policy Conference in May. “So this is across the country, and we’ve never been in a housing crisis like this in our lifetimes.”

The impact of that housing shortage has been steadily rising prices and at least some researchers saying that some regions of the state have the most overpriced housing stock in the nation when compared to historical norms.

“Many may find this surprising, but even in the current higher interest rate environment, demand for housing has remained steady on a statewide basis,” Filka said in a news release. “We

Filka touted government and political leaders in the state for prioritizing the housing shortage as a key policy point, and particularly pointing to recent legislative changes that allow for brownfield tax increment financing to now be used for home building.

“We’ve seen a transformation at our state housing agency,” Filka said in the release. “They are moving beyond the traditional affordable housing programs of the past and are utilizing new tools the legislature and Governor have made available. These tools have been used for years for job attraction, but communities can now utilize them to attract the housing investment they need.”

“They [our state housing agency] are moving beyond the traditional affordable housing programs of the past and are utilizing new tools the legislature and Governor have made available.”

Bob Filka, CEO of the Lansing-based HBAM

have been seeing some softening in parts of the state, but demand and need for more housing is clearly evident.”

A breakdown of the home-building data by county or region around the state was not immediately available.

At present, Michigan is short more than 140,000 housing units when compared with demand and need, according to recent figures from the Michigan State Housing Development Authority.

Still, Filka pushed back on proposed building code changes at the state level that he and others at the association have said would hamper much of the state’s goals around increasing housing stock.

Specifically, Filka says the state should look to the 2024 International Residential Code, as opposed 2021 rules currently being looked at.

“This newer ‘model code’ is far less costly and would provide more flexibility for builders to innovate in meeting safety and energy efficiency targets,” Filka said.

Nick Manes is a reporter for Crain’s Detroit Business.

Construction on an ICCF Community Homes project in Grand Rapids’ Baxter neighborhood in mid-2023. | ICCF COMMUNITy HOMES

Trinity Health may accelerate pain practice plans

Trinity Health’s medical group was already planning to expand a pain-management practice before Michigan Pain Consultants P.C. started closing its West Michigan clinics.

Now, as thousands of patients seek options for pain management, Trinity is looking at moving quicker to expand the practice. The health system has hired doctors for Grand Rapids and Muskegon who specialize in pain management and was planning to build their practices in both markets.

“We might have to accelerate our hiring process to grow those programs,” said Dr. Lisa Kinsey Callaway, chief medical officer for the Trinity Health Medical Group.

“We already had a one-to-twoyear plan for comprehensive pain management in the medical group. This may accelerate some elements of that … . Instead of being a two-year plan it could be a one-year plan,” Kinsey Callaway said.

Kinsey Callaway estimates that Trinity Health had about 2,500 active referrals to Michigan Pain Consultants.

Trinity already offers pain injections in Muskegon and hired a new pain injectionist in Muskegon

and a pain management specialist physician in Grand Rapids, both starting in September, she said. Both are presently going through the credentialing process.

“This was already in play, but this may result in us having additional hires sooner if we see a need in the community,” Kinsey Callaway said. “We are not certain that that’s enough at this time. We are looking at our longer-range goals and considering whether we need to shorten that time period.”

Trinity Health potentially accelerating growth and hiring plans for the pain practice reflects how care providers in the region are beginning to respond to the Michigan Pain Consultants clinic closings and an influx of patients.

The pain management practice on June 14 closed office locations in Wyoming, Muskegon and Big Rapids. Other offices in Grand Rapids, Greenville and Holland will close in August. Michigan Pain Consultants also filed for Chapter 11 bankruptcy protection to allow it to wind down operations.

Health care providers initially were surprised by the planned closings and at first responded by saying they were collaborating to try to minimize the closings’ effects on patients and the resulting gap in care. They wanted to ensure

pain patients get access to what they need, especially if they use narcotics to manage their pain.

“University of Michigan HealthWest is committed to providing comprehensive care for patients seeking relief of chronic pain,” the health system said in a recent statement to Crain’s Grand Rapids Business. “Our goal remains supporting patients in need.”

Likewise, Corewell Health told Crain’s that its “focus right now is helping patients and community members.”

Providers say they’ve been receiving calls from Michigan Pain patients seeking an alternative for their care.

“Several former MPC patients have already been evaluated. I’m seeing them on a daily basis in our spine clinic,” said Teri Holwerda, a nurse practitioner at Mary Free Bed Rehabilitation Hospital Spine and Pain Rehabilitation Programs in Grand Rapids, which has been taking on new pain-management patients.

Mary Free Bed has a comprehensive pain management and rehab program and so far has the capacity to take on new pain patients and handle the higher volume, Holwerda said. Prior to the Michigan Pain closings, the rehab hospital recently added physical

and occupational therapists and a pain psychologist to the pain program team and “we are prepared to extend services,” she said.

“We’re uniquely positioned with our multiple clinical programs and we’re ready to meet the needs of those patients from MPC that need care,” Holwerda said. “Our providers right now have the capacity to see these patients in a timely fashion” and within a couple of days.

Mary Free Bed could extend clinic times to accommodate incoming patients, if needed, Holwerda said.

Michigan Pain Consultants has been working with Trinity Health and “helping us to understand where they’re sending some patients, especially those with pain pumps, and then we’re looking

into how we can assist our patients who have pumps with either a new referral or other ways to manage that going forward,” Kinsey Callaway said.

As well, Trinity has been reaching out to its primary care patients that Michigan Pain Consultants has treated to schedule appointments over the next couple of months, and “to work through what needs to happen with either maintaining their care within primary care, getting them a referral to another pain specialist or making a new plan for their pain,” she said.

“Internally, we’re generating a kind of comprehensive packet to our primary care providers about what’s available for pain management referrals,” Kinsey Callaway said.

Lighthouse Group

Trinity Health Grand Rapids. | COuRTESy PHOTO

Franchisees scout for indoor pickleball club locations

A pair of Southwest Michigan business owners hope to tap the growing popularity of pickleball by opening two indoor courts in West Michigan under a new franchise agreement.

Robyn Goodrich and Keith Goodrich Jr. have signed a franchise agreement with Miami Beach, Fla.-based pickleball chain PickleRage and are scouting locations for indoor courts in Grand Rapids and Kalamazoo.

Founded last year, PickleRage is currently building corporate-owned courts in Moorestown, N.J., Jacksonville, Fla., Glen Burnie, Md., and West Bloomfield, most of which will be located in outdoor shopping malls.

The company opened franchising in February and announced July 11 it inked franchise deals with the Goodriches for the Michigan locations and with another pair of franchisees to add a location in Mobile, Ala.

The company promises the clubs will offer “unparalleled playing conditions for pickleball players of all ages and skill levels” through lessons, tournaments and leagues.

Robyn Goodrich said the Grand Rapids and Kalamazoo locations will offer memberships for about

$60 per month as well as pay-percourt rentals. She told Crain’s Grand Rapids Business she anticipates the locations will have pro shops where players can buy pickleball gear, or they could bring their own.

The couple was drawn to this venture because of “the growth of the sport.”

“We keep hearing more and more about people loving the game and being able to play at any age or any athletic level, and we just thought it was a super fun, exciting industry to get into as it continues to grow,” she said.

The Goodriches have three decades of experience in business ownership. Robyn Goodrich and her parents, Mike and Sue Horn, are franchise owners of the Pet Supplies Plus Kalamazoo location in Comstock Township. Keith Goodrich owns Essential Handyman Services LLC in Augusta.

The Grand Rapids and Kalamazoo facilities will become the second and third PickleRage courts in Michigan after the recreation chain announced a location last fall in the Gateway Center at 7300 Orchard Lake Road in West Bloomfield. After initial delays, that location was set to open July 19, according to PickleRage’s website.

The chain’s Maryland, New Jer-

sey and Florida locations are set to open this fall, according to the company’s website.

PickleRage said in the statement that the cost to open a franchise ranges from nearly $830,000 to $1.8 million. Robyn Goodrich said she and her husband do not yet know how much their investment will total because it will depend on the cost of leases and build-outs for the yet-to-be-determined locations.

PickleRage said in a statement that all franchise locations will include CushionX courts, the same used by professionals in the U.S. Open, and will have “advanced reservation systems and community-focused culture.”

The company did not immediately respond to requests for comment.

Eric O’Connor, VP of franchise development at PickleRage, said in a statement that PickleRage’s model offers “advanced technological solutions that streamline

Enhancing construction management with advanced aerial drone technology

Boosting efficiency, accuracy and safety on industrial job sites

In the rapidly evolving construction industry, the integration of advanced aerial drone technology is proving transformative. Drones are revolutionizing project management, particularly on complex industrial manufacturing sites. Rockford Construction’s use of drones at industrial jobsites showcases how this technology has significantly improved efficiency, accuracy and safety.

Real-time data and logistics solutions

At one industrial manufacturing jobsite, Rockford flies drones daily to provide real-time data on traffic, site logistics and lay-down areas. This constant stream of up-to-date information is crucial for effective site management. In one instance, drones identified a potential bottleneck on a key access road, allowing the operations team to reroute traffic and avoid significant delays. Additionally, drones can map out the most efficient pathways for the transportation of materials based on real-time conditions, significantly improving logistical planning and execution.

Accurate site measurements and earthwork calculations

One of the most significant benefits of drone technology in construction is its ability to provide precise measurements for earthwork. Rockford has used drones to verify the amount of material that needs to be removed from or added to a jobsite. In one notable case, radar-generated data from the drones revealed a more than 70% discrepancy in the amount of material that needed to be removed from a jobsite. This discovery was crucial in accurately pricing the cost of civil services, demonstrating how drones can enhance the accuracy of project estimates and reduce unexpected costs.

On a different Rockford project, drones were able to map out a large excavation site, detecting slight variations in terrain that traditional estimation methods typically miss. The resulting data allowed for a more accurate calculation of earth movement, reducing the margin of error and ensuring the project stayed within budget and on schedule. This precision not only

helps in cost estimation but also in planning and executing the project efficiently, minimizing waste and optimizing resource allocation.

Progress tracking and reporting

Drones are instrumental in tracking the progress of construction projects by capturing highresolution images and videos, providing visual documentation of the project’s development over time. This documentation is useful for internal progress reports and for communicating with stakeholders, including clients and regulatory bodies. For example, during a multi-year commercial development, Rockford used drones to create weekly progress videos, which were shared with investors and other stakeholders. This transparency helps build confidence and trust, while visual evidence from drones can justify timeline adjustments when delays occur.

Site surveillance and safety Drones offer comprehensive surveillance capabilities, enabling

operations, significantly reducing staffing needs, labor costs and improving efficiency.”

“This automated operational model allows for the effective management of large facilities with minimal staff, providing a seamless experience for both franchisees and players,” he said.

For the first year, the Goodriches expect to solely operate their locations, potentially hiring two to three staff members per location.

PickleRage indicated that it hopes to have at least 30 locations

open by the end of 2025 and 500 locations by the end of the next five years. It is currently seeking franchisees in Arizona, Florida, Utah, Nevada, Texas and North Carolina.

The trade group Sports & Fitness Industry Association reported in February that pickleball continues to be the fastest-growing sport in America, growing 51.8% between 2022 and 2023 and 223.5% since 2020, with an estimated 13.6 million players in the U.S. as of last year.

site managers to monitor potentially hazardous areas without physical presence. Regular drone flights can identify and address safety concerns promptly. For example, drones can monitor scaffoldings and high structures for stability and wear. The drones can be programmed to fly specific patterns as well, allowing for regular inspection intervals of highrisk areas.

Drone

tech brings value

The integration of drone technology into commercial and industrial construction projects offers numerous advantages, from improved safety and accuracy to enhanced project management and environmental monitoring. Rockford’s use of drones exemplifies the transformative

potential of this technology. As drones continue to evolve, their applications in the construction industry are likely to expand, further driving efficiency and innovation in the field.

Rockford is embracing advanced aerial drone technology, helping to streamline operations, deliver higher quality projects and ultimately benefit clients, stakeholders and the environment. The future of construction is bright with the ongoing advancements in drone technology, promising smarter, safer and more sustainable building practices.

Rockford
An example of a PickleRage pickleball court. The franchise inked a deal with a local couple to open locations in Grand Rapids and Kalamazoo. CREDIT: COURTESy PHOTO

WEDNESDAY, AUGUST 7, 2024 8:30 AM - 4:00 PM THURSDAY, AUGUST 8, 2024 8:30 AM – 3:00 PM

• Boston Dynamics: Demonstrations and Keynote

• 250+ Exhibitors

• Showcase of latest metalworking technologies • Industry 4.0 pitch competition

DRY ICE BLASTING SERVICES

Used by leading manufacturers in the automotive, aviation, furniture, medical device and food processing industries.

ADVANTAGES OF CLEANING YOUR EQUIPMENT WITH DRY ICE

• Reduce downtime by cleaning without disassembly

• E ciently remove grease, grime and rust with a non-abrasive cleaning process

• Safely clean around electronic controls (no water!)

• Avoid harsh chemicals with a food safe cleaning process

E ciently removing adhesive at a furniture manufacturing plant.

WELCOME

It’s hard to believe we started AME nine years ago to provide Michigan companies, schools, non-pro ts and exhibitors a platform to network all in one place locally. This goal of connecting people, coupled with technology, has always been our dream.

“Free to attend, Free expert speakers and free parking!*”

The show is designed to be the easiest, most affordable, and most valuable event for attracting top manufacturing suppliers from around the world. We listened to attendees and developed our own registration software for a quick and easy entry process.

*We even cover two hours of parking for the rst 2,000 attendees!

Every year, we invest time and money to bring in cutting-edge technology and in uential people and companies.

We are thrilled to feature

Boston Dynamics as our keynote speaker, with Caleb Sylvester, Director of Sales & Key Accounts, who is a worldrenowned leader in robotics and automation.

In 2024, we welcome two new hall sponsors: Action Industrial Supply will oversee the MRO/ Safety Hall, and our new i4.0 Tech Hall is sponsored by Rocket Labs and Centrepolis Accelerator at Lawrence Technological University. The i4.0 Hall, located at the front of the show, will combine

expert speakers with innovative technology companies.

Our diverse mix of speakers from all four halls offers attendees a wide range of topics to help their companies advance. Here is a preview of some of the expert sessions:

•Advancing Industry 4.0 to 5.0 through AI and automation

• The no-BS digital sales roadmap

•Realizing zero downtime, zerowaste with Industry 4.0 and AI •10 lessons from 100 interviews

with manufacturing leaders

•Grants, loans, and statewide resources for small to mediummanufacturers

•How to prepare for the new demands of industrial decarbonization

• Transforming operations with technology

We extend our deepest gratitude to all our hall sponsors, volunteers and show sponsors. This event would not have been possible without the support of West Michigan and surrounding communities.

INSIDE

3. WELCOME LETTER

Mark Ermatinger, Founder of AME, provides insights into the show and what to expect.

TABLE OF CONTENTS/SHOW INFORMATION

5. EXPO HIGHLIGHTS

Don’t miss these expo headliners! Jake Hall, The Manufacturing Millenial! Live Tool Demos! Women in Manufacturing Interview Series!

6.

EXPO AGENDA EVENTS & SPEAKERS

7. ADVANCED TECHNOLOGY TRENDS

Learn about the top advanced technology trends in manufacturing!

8. WHY AI LEARNING IS HERE TO STAY

The rise of artificial intelligence machine learning in manufacturing the factory floor.

10. INDEPENDENT DISTRUBUTORS

Independent distributors are proving their worth on the plant floor with agility, flexibility and a commitment to customer service.

12. BUILDING THE DIGITAL SUPPLY CHAIN

Helping create a future where manufacturing data is standardized and and readily available.

14-23. EXHIBITOR LISTINGS & MAPS

• 15-17 - AUTOMATION HALL

• 17-19 - 14.0 TECH HALL

• 19-21 - MRO/SAFETY HALL

• 21-23 - METALWORKING HALL

SHOW INFORMATION

HOURS

WEDNESDAY, AUGUST 7: 8:30 AM - 4 PM

THURSDAY, AUGUST: 8: 8:30 AM - 3 PM

LOCATION

DEVOS PLACE • GRAND RAPIDS, MI

FREE* PARKING

Free 2 hour parking voucher valid at City of Grand Rapids parking ramps,limited to the first 2,000 attendees between both days

Thank You AME 2024 Corporate Sponsors:

Gold Sponsor: Edgewater Automation

Silver Sponsors: Fluid-Aire Dynamics, InfluxData

Media Partners: Crain’s Grand Rapids Business Michigan Manufacturers Association

Don’t miss these highlights at AME 2024

Explore cutting-edge technology, network with industry leaders, and witness live demonstrations

Keynote Address

10 a.m. Thursday, August 8

Caleb Sylvester • Keynote Speaker

Caleb Sylverster leads a team that is helping customers adopt, deploy and scale the Spot robot platform in order to deliver a positive ROI in a short amount of time. He has 20 years of experience creating and selling digital transformation solutions and has led large-scale AI projects for several fortune 500 companies. For many years he focused on digital transformation through machine perception, speci cally computer vision. Caleb works closely with executives at large industrial companies as they work to understand and introduce autonomous mobile robotics into their enterprises. Find Boston Dynamics on exhibit in Booth #216.

Meet Jake Hall, The Manufacturing Millennial Automation Hall

Jake Hall is the Manufacturing Millennial. He talks about the latest technology in the automation and manufacturing while making it engaging for all audiences. He is an experienced sales professional with extensive knowledge building lasting business relationships across multiple accounts, designing sales strategies, and creating and accomplishing project goals. Pro ciency in creating new business opportunities with existing and new accounts by leveraging key strengths and maintain customer relationships.

LIVE TOOLING DEMOS

Dynamic Machine offers over 200 years of combined machine tool and manufacturing experience. They are uniquely quali ed to sell and service CNC machine tools from single, stand-alone units to complex, multimachine turnkey systems.

Check them out at Booth #900!

Vander Ziel Machinery Sales Inc. buys and sells a variety of new and used machinery, from ironworkers to welding equipment. As a member of the MDNA, they ensure the reliability and integrity of their products.

Check them out at booth #614!

Explore MEGATEL CNC, a toptier metalworking MEGATEL CNC SOLUTIONS INC solutions provider in North America. With 45 years of re ned expertise, we proudly announce our expansion into the United States, with our inaugural Michigan of ce opening in early 2025. Check them out at booth #914!

Meet Emily Wilkins Founder & CEO, Marketing Metal Metalworking Hall

Emily Wilkins is a serial entrepreneur with over 15 years of experience helping small manufacturers reach their business goals through strategic branding, positioning, and marketing. Through her own Radical agency, Marketing Metal, Emily helps job shops make big pro ts and even bigger impact by building them a Radical brand and marketing machine in just a few days–and empowering them to use it. She believes that in order for manufacturers to be effective with their marketing, it needs to be stupid simple and laser focused.

Women in Manufacturing Interview Series

Stop by the Marketing Metal Booth #1120 to hear from these innovative Women in Manufacturing.

Sami Birch

Dana Brown

Joni Cunningham

Michelle Garrett

Kim Hildebrand

Aisha Mills-Hendrix

Brenda Ratcliffe

Danielle Schneider

Chelsea Sutton

Alexandria Trusov

Ashley Weber

SPEAKER/BREAKOUT ROOM

AGENDAS

Wednesday, August 7, 2024

AUTOMATION BREAKOUT ROOM

9:00 AM - 10:00 AM

A LOOK AT THE STATE OF ARTIFICIAL INTELLIGENCE IN THE AUTOMATION INDUSTRY

Speaker: Don Clutterbuck

Presented by: Horner Automation

10:30 a.m. - 11:30 a.m.

ADVANCING INDUSTRY 4.0 TO 5.0 THROUGH AI AND AUTOMATION

Speaker: Zakary Smith

Presented by: SensFlo

12 p.m. - 1 p.m.

ACCELERATING ENGINEERING AND PROCUREMENT; THE CAD FALLACY

Speaker: Chris Brown

Presented by: CADDi

1:30 p.m. - 2:30 p.m.

THE NO-BS DIGITAL SALES ROADMAP

Speaker: Joseph Maxwell

Presented by: SwiftOtter

GENERAL MANUFACTURING BREAKOUT ROOM

9 a.m. - 10 a.m.

HOW NUTS, BOLTS, AND THINGAMAJIGS IS IMPACTING WORKFORCE DEVELOPMENT IN THE MANUFACTURING INDUSTRY

Speaker: Ed Dernulc

Presented by: Nuts, Bolts & Thingamajigs

10:30 a.m. - 11:30 a.m.

DATA WASTE AND THE OPPORTUNITIES YOU LEAVE BEHIND

Speaker: William Stone

Presented by: Classy Llama

12 p.m. - 1p.m. WHY WIM?

Speaker: Danielle Scheider

Presented by: Creston Industrial Sales

METALWORKING HALL

9 a.m. - 10 a.m.

WHY COLLABORATIVE ROBOTS HAVEN’T TAKEN OVER WELDING OPERATIONS

Speakers: Malachi Greb / Jenna Vessel

Presented by: Creston Industrial Sales

10:30 am – 11:30 a.m.

ADVENTUROUS DEMAND GENERATION FOR INDUSTRIAL MARKETERS

Speaker: Eddie Saunders Jr.

Presented by: Creston Industrial Sales

12 p.m. - 1 p.m.

THE HILLS AND VALLEYS OF SOCIAL MEDIA

Speaker: Hallie Haupt / Shae Eichele

Presented by: Creston Industrial Sales

1:30 p.m. - 2:30 p.m.

10 LESSONS FROM 100 INTERVIEWS WITH MANUFACTURING LEADERS

Speaker: Chris Luecke

Presented by: Creston Industrial Sales

MRO/SAFETY BREAKOUT ROOM

9 a.m. - 10 a.m.

MRO SUPPORT FROM YOUR ERP ASAP!

Speaker: Dennis Easter

Presented by: Algorithm Inc.

10:30 a.m. – 11:30 a.m.

REALIZING ZERO-DOWNTOWN, ZERO-WASTE WITH INDUSTRY 4.0 AND AI

Speaker: Mo Abuali

Presented by: Wipfli

12 p.m. - 1 p.m.

EFFECTIVE RELIABILITY: ADOPTION, SIMPLICITY, AND TECH INTEGRATION FOR ALL SIZES

Speaker: Chad Brannan

Presented by: Facility Works

1:30 p.m. - 2:30 p.m.

THE REALITY OF CUT-RESISTANT GLOVES IN THE MARKETPLACE

Speaker: Griff Hughes

Presented by: Banom

Top advanced technology trends in manufacturing

“These technologies are dominating the field,” said Industry 4.0 Accelerator program director Scott Phillips.

As we live in industry 4.0, or the fourth industrial revolution, advanced technology trends continue to reshape manufacturing as we know it today, and what its future may hold.

Scott Phillips, Industry 4.0 Accelerator program director, said the field is rapidly changing. New advanced technology trends dominate today’s market, and as old trends make their way out, manufacturers must find creative ways to keep up with the evolution.

Phillips explained these are the top advanced technology trends manufacturers see today, and the benefits and challenges businesses may face in implementing them.

What advanced technology trends are you seeing in manufacturing this year?

One of the biggest trends in manufacturing this year is in machine vision technology. Machine vision is used a lot in automated inspection, or the use of digital technology to inspect, measure and analyze parts. Manufacturers don’t have a lot of people. There’s a shortage of labor in manufacturing, so one of the last things you want to use people for is inspecting parts and things you’re making.

Since there just aren’t enough people to go around, more and more companies are trying to use new solutions [like machine vision] and cameras to inspect parts. That’s probably the number one category right now that we help manufacturers with.

Number two is automated material handling, and it’s almost for the same reason. If you don’t have enough people to handle materials, [using people to do so] is a

poor use of human beings. In the old days, we used trucks and AGVs [automated guided vehicles], but now it’s automated mobile robots, autonomous forklifts, anything to move materials from the dock door to the work assembly line, throughout the factory floor, and back to the warehouse and back onto the truck. These things have technology on them that can unload and load a truck from a dock door without any human being involved. This is another big growing category of manufacturing technology you’ll see at trade shows.

When did these advanced technology trends start dominating the market?

They’ve been growing over the last five-to-10 years, but they have really accelerated in the last one or two years. Three factors are playing out over recent times and contributing to the growth. One

is labor costs. With union contracts, union wages went up significantly about six months ago. Now they’re 40% more expensive, even if you have people doing these jobs. That’s why more and more manufacturers are turning to these advanced technologies.

Besides alleviating the labor shortage, what other gaps do these trends help fill?

There’s an acronym that’s been taught for many years. You use

for small- to medium-sized manufacturers. Sometimes the acronym is SMMs or SMEs in Michigan. 85% of these manufacturers have 50 people or less, and that’s typical of most states. We’re not unusual here in Michigan. In the U.S., there are more than 600,000 manufacturers, and probably 80% of them are designated by the federal government as small to medium. So, why do these small to medium manufacturers have obstacles

On any given day, there’s more than 500,000 manufacturing jobs open in the U.S. This is expected to double within 10 years.

is just demographic trends. In mature countries like the U.S., there’s a labor shortage since there are fewer people of working age wanting to work in manufacturing environments. On any given day, there’s more than 500,000 manufacturing jobs open in the U.S. This is expected to double within 10 years. If you’re short this many jobs, the last thing you want is to have people doing the tasks we just mentioned above. You need technology.

When COVID-19 hit, doing these types of things with humans involved became even harder due to social distancing and health requirements. The third factor

technology to solve or take over jobs that are dull, dirty, dangerous, distant and difficult, or the five “Ds” of robotization. Think of dirty work environments where it’s unhealthy for people to be. Maybe you can use a robot or a machine to do that challenging job. Other jobs are computationally difficult for humans. Humans require a constant attention span all day, and humans get tired. Computers and robots don’t get mentally tired.

What organizational challenges do manufacturers face in implementing these trends?

The hardest challenges are

when adopting technology?

The first obstacle is that they don’t have management bandwidth. In any small manufacturing business, the management team is working in the business. That’s true of any small business, not just manufacturing but it’s hard to invest strategically in a business when you’re out working on the line every day because you’re family-owned.

The second obstacle is a skills shortage. Small to medium manufacturers don’t always have the technical skills to operate advanced machinery. The third obstacle is that they don’t have the capital. They

don’t have the financial means to buy new equipment.

Sometimes what we say is these businesses don’t have a people closet and they don’t have a money chest. The people closet means they don’t have money to buy advanced technology, and the people closet means they don’t have people with the skills to operate advanced equipment.

How do manufacturers keep up with technologies that evolve so rapidly?

Technology moves fast. That wasn’t always the case, but we’re living in the era of what’s currently called industry 4.0. According to the Germans, industry 4.0 started around 2011 and includes cyber physical systems. Industry 1.0 was the mechanization of industry back in the 1800s, so the steam engine and hydropower industry. Industry 2.0 was the invention of electricity in the early 1900s. Industry 3.0 was the computerization of manufacturing in the 1970s and now we’re in industry 4.0.

Technology is advancing at a rate like it’s never advanced before, and most manufacturers don’t have the technical skills to adopt it or operate it. The curve is growing steeper. The evolution of technology tends to double in its timeline.

The Rise of Artificial Intelligence Machine Learning in Manufacturing the Factory Floor…

Industrial

Control’s Mark Ermatinger shares how this new technology is poised to transform the industry

In the world of manufacturing, a new application and subset of artificial intelligence, or AI, is allowing machines to learn from data without needing to program them to do so.

It’s a growing technology known as AI machine learning, or the ability to simulate human thinking capability and behavior, and it’s poised to shake up the manufacturing industry for good. Mark Ermatinger, CEO of Industrial Control and founder of the Advanced Manufacturing Expo, shares why AI machine learning is here to stay.

How has AI already transformed the manufacturing industry as a whole?

The rise of AI is changing how we check for quality issues, assist assembly and help with safety on the factory floor. In

manufacturing, AI is mainly used for quality control on machine vision cameras which traditional rules-based vision systems wouldn’t work well on. Yet more and more, it’s now being used to watch operators’ assembly parts and alert them if they skip steps or insert components the wrong way. For example, AI will throw a light down on a machine operator’s surface if something is done incorrectly.

AI is also excellent for reading text, especially a technology called Optical Character Recognition (OCR), along with identifying what part it sees, such as colors and wood grains. As AI is quickly emerging, it’s our job at Industrial Control to vet and test different technologies to figure out if they will hold up within our factory.

What types of AI machine learning has Industrial Control deployed so far?

Our company is currently deploying five different AI machine vision projects from four different providers. One project uses AI to inspect taser parts to ensure they’re made correctly before they’re shipped to their customer. Another type of AI machine learning we use checks for defects in the paint on automotive parts, so things like dirt spots and tiny scratches [that humans may not see as easily].

Now, we have seven AI vendors compared to three last year. We’re also talking with another vendor that works with audio AI, where we can “listen” to machines to predict machine failures before they happen. That one is still in development. So, let’s say you have something on the machine that squeals when it’s too hot, you can teach AI that a temperature setting is too high, and that sound happens when there is a problem.

We’ve also helped local manufacturers deploy autonomous floor robots that can reroute themselves as needed when the aisle is blocked to reach their destination, but with true machine learning, these same robots will learn which aisle is typically not blocked as much and will choose that route as the default - another AI capability.

Does AI machine learning pose any challenges to manufacturers?

The number of new companies offering AI for manufacturing is astonishing, especially in the last few years. Yet when you bring these new technologies on the factory floor, you may have a whole set of issues. The biggest limiting factor is the computing power and the heat AI technology produces. AI requires very powerful multicore central processing units and graphical processing

units. AI servers can’t tolerate heat well. If it gets too hot, they start to degrade their performance, so you’ll need proper air conditioning or heat dissipation to maintain their quality.

What role do you see AI machine learning playing in the future of manufacturing?

AI is on the move in every aspect of our lives, including the migration into industrial robots that many manufacturers use to produce products and goods every day. Currently, there is a lot of work being done with Natural Language Processing (NLP), which is a branch of artificial intelligence for programming industrial robots to understand text and speech much as a human would. One example of a text string is “pick up the part off the conveyor, place it in the fixture and then apply the glue bead.”

I think we are a few years away from this level of understanding for robots, but brace yourself and lean into it, as these new tools will accelerate Industry 4.0 in a whole new way and likely in every aspect of your company. There’s also a lot of focus right now on setting up machines to run even faster and for robots to do what they need to do without programming a lot of code in a special language. Once we get to that point, we can just type in the words that we want the robot to do, and then they’ll be deployed much faster.

I think so. It’s not just manufacturers, but anyone in any type of work. People are moving forward right now by experimenting with AI in all aspects of business. For us personally at Industrial Control, we’re going to need to look at every aspect of every scale. We’re going to use AI so that we can be the disruptors going forward.

To keep up with these changes, it’s important to understand exactly what AI machine learning is and how it’s one level above

The market for AI robotics is also growing exponentially. Marketsandmarkets.com tracks these changes and reports that the AI robotics market stood at U.S. $6.9 billion in 2021. Now, it’s forecasted to reach a staggering U.S. $35.5 billion by 2026 at a compound annual growth rate of 38.6%, meaning AI machine learning is de nitely here to stay. Is AI machine learning pushing manufacturers to reinvent their digital strategy?

your traditional, everyday AI. AI machine learning is a subset of AI that allows machines to learn from experience and improve over time. AI can perform tasks like seeing, understanding, responding to language, analyzing data and making recommendations. AI machine learning, meanwhile, can perform even greater tasks like automatically learning and improving, identifying patterns and performing speci c tasks - making it the technology of the future.

Independent distributors: The agile backbone of modern manufacturing

Proving their worth on the plant floor with agility, flexibility and a commitment to

customer service

Adaptability and flexibility in today’s fast-paced manufacturing environment is essential.

Manufacturers that can respond to market fluctuations, supply chain disruptions and customer demands do not simply stay in business, they thrive in business. But what happens when the cutters are dull, that critical tool breaks or the supply cabinet runs empty?

That’s where independent distributors come in.

Distribution is an essential element of the manufacturing supply chain, especially when having a spare tool on hand or a well-stocked supply cabinet can mean the difference between on-time delivery and costly delays.

Distribution is a commodity business and manufacturers have no shortage of options when it comes to buying equipment. But what sets independent distributors apart from their larger, national counterparts ultimately comes down to agility, flexibility and customer service. Independent

distributors work hand-in-hand with their manufacturing clients to ensure their customers are positioned for success.

Agility

Comparing independent distributors to their national counterparts is similar to comparing a mouse to an elephant. National distributors may have the size and brand recognition, but independent distributors are far nimbler. This positions independent distributors to more effectively adapt to pricing, vendor volatility, supply chain disruptions and countless other factors that affect everyday business.

This agility was on full display during the Covid-19 pandemic. At a time when manufacturing companies were scrambling to stock enough masks and personal protective equipment to keep their workers safe and stay operational, independent distributors pivoted their inventories on a dime to compensate. If a vendor ran out of masks, they could rapidly find new vendors to fill the void.

This flexibility during times of intense supply chain volatility is an earmark of independent distributors. Being smaller, they are often not as beholden to contracts with specific vendors and have more flexibility to pursue new avenues for supplies.

Independent distributors can also better customize their inventories to suit their customers’ needs. Unlike larger national distributors that take a

a reputable source for the products their customers need.

Flexibility

Delivery speed is another key benefit of working with an agile independent distributor. No one enjoys holding inventory. It is bulky, expensive and risky. Independent distributors know this and follow the same just-intime principles that keep their customers’ operations running at optimal efficiency.

Adaptability and flexibility in today’s fast-paced manufacturing environment is essential.

more one-size-fits-all approach with products, independent distributors can stock items that pertain specifically to their customers’ businesses. If a product is unavailable, manufacturers using national distributors may be forced to look elsewhere. Independent distributors, on the other hand, will make sure they find

When an essential tool breaks or a critical last-minute order needs to be placed, independent distributors can respond rapidly. Instead of waiting for a part to be shipped from a national warehouse through standard delivery practices, many independent distributors work closely with their customers to

arrange alternative options. Air shipments, next-day delivery, and other shipping options are just some ways they keep their customers up and running. Many independent distributors also maintain a fleet of delivery vehicles, allowing them to deliver that essential part quickly – at times within half an hour.

Customer service

The distribution business is simple. Distributors buy tools and material from producers and sell them to manufacturers. Manufacturers can choose between hundreds, if not thousands, of vendors when looking for a new tool or to restock safety gear. But one of the essential elements that keeps manufacturers returning to independent distributors is the level of care and service they provide their customers. By closely managing their relationships, independent distributors gain a deep understanding of their customers’ business, staff, and even personalities. This lets the best independent distributors manage many aspects of their

customers’ supply chains for them, allowing manufacturers to focus on what they do best: making parts.

Smaller, independent distributors are more likely to have dedicated, longterm employees, giving customers a deep bench of expertise and product knowledge to draw from. With higher turnover in their ranks, national distributors can often lack the product knowledge of their smaller, independent counterparts. Independent distributors have sales teams deployed in the eld, working directly with customers to nd the right products for their application.

Even when independent distributors cannot compete on price per unit compared to national distributors, they often save their customers more money in the long run. They have a detailed grasp of their products, meaning they can stock the most quality parts for the most appropriate prices. These products often last longer and perform better over the long term, ultimately saving their customers money. An independent distributor’s value is proven every day on the plant oor.

When pricing negotiations are possible, manufacturers doing business with independent distributors often meet with senior sales employees who are empowered with the exibility and the agency to make decisions immediately. Independent distributors often have more freedom when it comes to negotiating pricing options with their vendors. And these negotiations often occur immediately, during the meeting, rather than days or weeks later.

Operating as an effective distributor means far more than simply backing a truck up to the loading dock, unloading a skid and driving away. Independent distributors are trusted partners with manufacturers, committed to driving cost savings on the plant oor quarter after quarter. At times that involves recommending an alternative product. Other times it involves working with their own vendors to negotiate a better pricing structure on behalf of their customers. Regardless of the situation, independent distributors are far more than just delivery professionals, they’re problem solvers committed to their customers’ success.

SUPPLIES ON DEMAND.

MUSKEGON

Building the Digital Supply Chain

Creston Industrial Sales helps create a future where manufacturing data is standardized and readily available

Manufacturers are integrating new technologies and embracing digitalization like never before. In this hypercompetitive manufacturing environment, companies are relying on data to remain one step ahead of their competition and prepare for changes in the global market.

But taken on its own, data can often be far less ef cient than it seems – siloed, underused, or not used at all. More than the data itself, it is the connectivity between data sources that empowers manufacturers to make informed decisions and grow their businesses. Connectivity is what meshes tooling data with simulation software and digital twins. It is what empowers ERP systems through quality control, procurement and supply chain data.

Building connectivity between disparate data was once under the purview of select companies, each creating their own systems from the ground up with an army of engineers and programmers. Now, manufacturers have access to a variety of off-the-shelf systems. The democratization of advanced connectivity tools spells an exciting time for manufacturing. However, without access to reliable, accurate and standardized data, manufacturers can often be left spinning their wheels.

Many times, it takes a guide to help companies understand how to clean, enhance, and standardize their data so it can be used the most effective way possible. It’s that access and insight of manufacturing data are two of the problems that Paul Hendricks, CEO of Grand Rapids-based Creston

Industrial Sales, hopes to solve.

“Creston has always been masters of the physical supply chain, helping customers source the products, the machines and the tooling they’re using,” Hendricks said. “We want to do the same thing with the digital supply chain as well. We want to handle the products, logistics, supply chain and data formats for the digital supply chain as well.”

To make that dream a reality, Creston partnered with CIMSOURCE GmbH, a provider of digital data for tools and tooling management systems based in Germany, in 2021. Since then, the companies have worked together to create, standardize, and make available tooling data for the scores of cutters and other tooling equipment on the market. But there is

still much more work to be done as manufacturers continue to adopt data-driven technologies, Hendricks said.

Standardization for

Digital Twins

Digital twins and CAM software are powerful tools in the modern manufacturer’s arsenal. The technologies help manufacturers simulate manufacturing processes, avoid tool collisions, and optimize tool pathing in real time while avoiding real world costs. However, despite the power these technologies bring to bear, they are beholden to the quality of their backend data.

In the physical world, manufacturers are accustomed to tooling operations coming together seamlessly. Take, for example, a tooling operation involving a holder, collet and an end mill.

Each component functions together easily because the process for mating the parts is standardized. However, in the digital world, that is often not the case.

If a customer had three separate les containing the digital twins of each component, there is no guarantee they will cooperate in a CAM or simulated environment. The les may each have different data elds, or those data elds may all be recorded with different parameters or with different coordinate systems, Hendricks said. Sometimes the CAM or simulation environment will ask for additional information to complete the operation. Other times it results in broken models. Either way, the situation costs time and takes away from production ef ciency to sort out.

Hendricks and Creston

hope their partnership with CIMSOURCE can start to bridge that gap by standardizing tooling data.

“We’re working with CIMSOURCE to provide information people can pull from their libraries, assemble the tools, put them in a digital representation of the machining center, and simulate and design the manufacturing process,” Hendricks said.

Virtual Product Selection

Finding the correct tool can

be a labor-intensive process.

Highly complex situations often require the expertise of professionals with years of product knowledge and technical experience. Technology is unlikely to change that paradigm anytime soon. “However, digitization can drastically speed up routine re-ordering and identify new, standard tools for your application. The technology’s limitations are only obvious when trying to specify nonstandard tools for niche applications. Here a skilled, technical tool sales rep would still be needed”, Hendricks said.

Currently, if a customer approaches Creston looking for a cutter of a particular length and depth of cut, their staff often must consult a paper catalog to nd a vendor, then search that vendor’s website, research each product and decide which one best ts their customer’s needs.

By contrast, Hendricks sees a future where product selection, for all but the most complex requests, is done virtually. In a virtual product system, all tooling data would be stored with standardized speci cations, indexed, and

Industry 4.0 Training in Holland

easily searchable. Unlike physical products, digital tools, and the data sets behind them, can be revamped and shipped numerous times, allowing companies to nd the speci c tool they need for the job at hand.

Not only would this speed up the product selection process, but it could eventually pave the way for advanced predictive ordering systems that automatically and preemptively ll orders and keep customers’ supply chains running.

Collaboration Required

Standardizing tooling data requires cooperation across the manufacturing sector.

To ensure digital product availability, the information supply chain must be organized across multiple tracks and sales channels. It is unlikely tool manufacturers will hold a competitive advantage solely through product data. From a customer’s perspective, access to uniform tooling data is far more important.

Cross-vendor collaboration is not unheard of. However, this collaboration does not typically stretch across software providers of CAM and tooling management systems. To

help solve this, CIMSOURCE has developed its ToolsUnited platform to address this challenge.

Between CIMSOURCE, Creston, and the many other providers working on providing more accurate manufacturing data, Hendricks sees a bright future for manufacturers. In the near-term, he believes customers will use internet of things technology to search for and nd machining data and application guidelines from the internet. This mass collection of uses cases will eventually pave the way for machine learning processes to make realistic and predictive suggestions for machining tasks through pattern recognition.

“My vision is that this collaboration is not a West Michigan company competing against another West Michigan company scenario,” Hedricks said. “I look at this as trying to make our West Michigan manufacturing and Midwest manufacturing globally competitive. If we can embrace this and really push for these ef ciency gains with information, we can be more globally competitive. And we are in a global manufacturing economy.”

AUTOMATION HALL

AgileOne #229

Ahaus #415

Air Components, Inc. #206

Altech Corporation #501

AML #524

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Axis Automation #409

BBC Bircher Smart Access #238

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Breakthrough Manufacturing Technologies #419

Bron Converting 412A

C2 MACHINING #217

CADDi #209

Classy Llama #417

Consumers Energy Business Energy Efficiency Programs #306

Counterpart ERP #522

COVAL Vacuum Technology Inc. #505

Deepview #340

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DESIGNFUSION #529

Discover Manufacturing/West Michigan Works #508

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EAC Product Development Solutions #410

EDGE-SWEETS COMPANY #208

Edgewater Automation #400

ESafety #213

Fibro Rotary Tables US Inc. #333

Fumex #412B

Galco & Kuebler Inc. #308

Gordon Water Systems/Hans Premium Water #221

GR Metrology #824

Great Lakes Metrology #424

Group Marketing Services, Inc. #222

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Linear Automation USA #506

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Midwest Metrology #841

Mobile Industrial Robots (MIR) #500

Motion Control Corporation #309

Motion Index Drives #300

Nanotec Electronic US Inc. #413

NEFF Automation #516

(Continued on next page)

AUTOMATION HALL

North Coast Components

Ottawa Area ISD/ Thompson M-TEC #211

Precision Tools Service, Inc. #338

Progressive Handling #224

PULS #408

QAD Redzone #422

Raven Engineering Inc. #236

Rehmann #503

Reliability Concepts #328

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Rock Interface Systems #528

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SMC Corporation of America #532

Smith Automation #344

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I4.0 TECH HALL

Algorithm Inc. is a Gold Cer tified service provider of Acumatica Cloud ERP and a business process consulting firm specializing in manufacturing, wholesale, distribution, and construction & building components companies based in the United States. Legacy system data migration and industry expertise is why Algorithm has a 98% success rate on first golives for the implementation of advanced ERP systems.

With a history spanning over 30 years in the ERP business, Algorithm has solidified its reputation as a reliable ally for businesses aiming to streamline operations and enhance productivity. We are committed to the success of our clients, offering intelligent, industry-focused business functionality that can be tailored to meet the specific needs of growing companies by integrating an ultramodern cloud ERP such as Acumatica with custom solutions, upgrades, and add-ons.

I4.0 TECH HALL

Inc. #818

Seimens #707

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Bringing the PVD coating process in-house reduces per-part coating costs, saves time, and improves quality control. Visit our booth to see VaporTech® coatings and learn how one of our coating systems can help you integrate PVD coating into your manufacturing operation.

MRO/SAFETY HALL

Midwest Metrology #841

Milwaukee Tool #622

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MSC Floors #636

MVB Improvements #720

Peter Greven U.S. Corporation #827

Premier Industries #734

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State of Michigan MIOSHA Consultation, Education and Training Division #736

METALWORKING HALL

Achteck America, Inc. #908

Allied Machine & Engineering #1018

ARCH Cutting Tools #1118

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Bilz Tool Company Inc. #929 BP Castrol Lubricants USA #1004

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Carmex Precision Tools, LLC #916

Chem Arrow #921

Cibo Abrasives #924A

CNC Tooling Solutions, LLC #1003

Creston Industrial #1006

D & S Machine Repair, Inc. #925

D.P. Brandel Company -> Crystallume / RobbJack #922B

Dynabrade, Inc. #926

Dynamic Machine #900

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Flex Machine Tools is a leading manufacturer of advanced manufacturing solutions. Offerings include long-bed vertical machining centers, tapping arms, waterjets, beam drill lines and ergonomic solutions. These modern machines are specifically designed to improve efficiency, enhance productivity and prioritize operator comfort. Flex Machine Tools provides manufacturers with precise and adaptable solutions to handle complex machining operations effectively.

METALWORKING HALL

Fluid-Aire Dynamics #1000

Fuller ton Tool #918

Garr Tool #909

Gorilla Mill #906A

Great Lakes Tooling Solutions / Primary Tool #1001

Grob Systems, Inc. #1105

GRS Stohler Company #1022

Guhring Inc. #1008

GWS Tool Group #922A

H&R Mfg. and Supply, Inc. / Mate Precision Tecnologies #911

Haimer USA #902

Hangsterfer’s #1106

Hastings Air Energy Control, Inc. #927A

Horn USA Inc. #903

Industrial Magnetics, Inc. (IMI) #1103

Iscar USA #1101A

ITW Pro Brands #1013

Lang Technovation #1107

LMT Tools #1108

LocaliQ | USA TODAY Network #1112

M.A. Ford #928

MAPAL #904B

Marketing Metal Creator Space #1120

Master Fluid Solutions #1009

Megatel CNC Solutions Inc. #1122

Nachi America #1101B

Norton Abrasives #1116A

NPR of America #1128

Nuts, Bolts & Thingamajigs #1130

Oemeta - The Coolant Company #906B

OSG USA, Inc. #1016

Pioneer Premium Tool & Work Holding #910

PMC Gage Companies #1015

Precicsion Metal Forming Assoc #1012

Preferred Quality Services #1129

Primus Coating #1125

QualiChem Metalworking Fluids #1109

RealVNC #1102A

Reid Supply #907

Royal Products #904A

Sales & Marketing Dynamics, Inc. #1017

Sandvik Coromant #1116B

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Soph Magnetics #1127

Specialty Tools Inc. #1121

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MICHIGAN HEALTH CARE SYSTEMS CRAIN’S LIST

COREWELL HEALTH 1 Grand Rapids49503

616-391-1774; corewellhealth.org

HENRY FORD HEALTH Detroit48202 800-436-7936; henryford.com

UNIVERSITY OF MICHIGAN HEALTH MICHIGAN MEDICINE

Ann Arbor48109

734-936-4000; uofmhealth.org

4 ASCENSION MICHIGAN

5

Warren48092 866-501-3627; ascension.org/michigan

TRINITY HEALTH MICHIGAN Livonia48152 734-655-4800; trinityhealthmichigan.org

6 MCLAREN HEALTH CARE Grand Blanc48439 810-342-1100; mclaren.org

7 DETROIT MEDICAL CENTER Detroit48201 313-745-5146; dmc.org

8 BRONSON HEALTHCARE Kalamazoo49007 269-341-6000; bronsonhealth.com

9 MYMICHIGAN HEALTH 4 Midland48640 989-839-3000; mymichigan.org

5 Lansing48912 517-364-1000; UofMHealthSparrow.org

Garden City48135 734-458-3300

HEALTHCARE Saginaw48602 989-583-0000; covenanthealthcare.com

UNIVERSITY OF MICHIGAN HEALTH-WEST 7 Wyoming49519 616-252-7200; uofmhealthwest.org

810-262-9000; hurleymc.com

734-240-8400;

president, Trinity Health Michigan Medical Groups

ThislistingisanapproximatecompilationoftheleadinghospitalcompaniesbasedinMichigan.Netpatientrevenuelistedisoperatingrevenue,excludingbaddebt.Totalrevenueisnetpatientrevenue, investmentincome,non-operatingorotherrevenue.Uncompensatedcareischaritycareplusbaddebtatcosts.Thesearemedicalservicesforwhichnopaymentisreceivedorexpected.Itisnot acompletelistingbutthemostcomprehensiveavailable.Unlessotherwisenoted,informationwasprovidedbythecompaniesdirectlyorfromstateandfederalfilings.Companieswithheadquarters elsewherearelistedwiththeaddressandtopexecutiveoftheirmainMichiganoffice.DND=DidNotDisclose. e. Crain'sestimate. 1. BeaumontHealthandSpectrumHealthmergedasanintegrated healthsystemwiththetemporaryname,BHSHHealthonFeb.1,2022.RebrandedasCorewellHealthinOctober2022. 2. RungewillstepdownJune30,2025.Hewillremainwiththeuniversityas aprofessorinthemedicalschool. 3. From ModernHealthcare 4. FormerlyMidMichiganHealth.EffectiveDec.1,2021,thenamechangewaspartofasystem-widebrandchangeupdatingthehealth systemandfacilitynames,andlogo. 5. SparrowHealthSystembecameUniversityofMichiganHealth-Sparrow,effectiveApril1,aspartofSparrowjoiningtheMichiganMedicineclinicalnetwork. 6. ManagesGardenCityHospitalandLakeHuronMedicalCenter. 7. MetroHealth-UniversityofMichiganHealthannounceditisrebrandingtoUniversityofMichiganHealth-WestinJune2021. 8. Named the new president in September after Peter Hahn resigned.

Music publisher levels lawsuit against Unruly Brewing

A Muskegon brewery is finding out that one “Bad Romance” can drive music copyright holders “Crazy” if the proper licenses are alleged to be “Missing” from the local venue.

Muskegon’s Unruly Brewing Co. faces a federal lawsuit from three music publishers who are alleging that the brewpub committed copyright infringement by playing music by recording artists Lady Gaga, Willie Nelson and Everything but the Girl without proper licensing.

Lawsuit alleges an “unauthorized public performance of musical compositions” by playing three songs without proper licensing

Broadcast Music Inc. (BMI) along with House of Gaga Publishing LLC, Sony/ATV Songs LLC and Redone Productions LLC filed the federal copyright lawsuit against Unruly earlier this month in U.S. District Court for the Western District of Michigan.

BMI is a performing rights orga-

nization that represents 1.4 million songwriters and music producers and collects license fees from businesses that use their music.

According to the suit, BMI said that it reached out to representatives from Unruly more than 24 times since August 2023 to inform them of their copyright infringements.

The lawsuit alleges that on May 2, Unruly Brewing hosted an “unauthorized public performance of musical compositions” by playing three songs without proper licensing: “Bad Romance,” written by Lady Gaga and Nadir “RedOne” Khayat; “Crazy,” written by Willie Nelson; and “Missing,” written by Ben Watt and Tracey Thorn, who recorded as the Everything but the Girl.

“The specific acts of copyright infringement alleged in the complaint, as well as defendants’ entire course of conduct, have caused and are causing plaintiffs great and incalculable damage,” according to the lawsuit. “By continuing to provide unauthorized public performances of works in the BMI Repertoire at the establishment, defendants threaten to continue committing copyright infringement.”

Representatives from Unruly Brewing did not immediately respond to requests for comment for

this report.

Chris Gartman, a principal in the Grand Rapids office of Miller, Canfield, Paddock & Stone PLC who specializes in advising craft beverage manufacturers, said that music copyright infringement is a common problem for businesses in the hospitality industry.

“We probably see it come up twice a month on average,” he said, noting that issues with music licensing can include music that’s played in the background at taprooms and bars, live cover bands or even a single performer with a guitar.

“In terms of being a responsible venue, you should have that license in place,” he said.

Gartman said that typically, copyright infringement issues don’t build into a lawsuit and are resolved after a business receives a cease-and-desist letter.

“Our advice is always to either cease or pay it, because then you get them off your back,” Gartman said. “They do not stop. They take those rights very seriously.”

Unruly Brewing opened at 360 W. Western Ave. in Muskegon in 2013. The brewpub, hailed as Muskegon’s first craft brewery, offers its own beer and spirits alongside a full menu of pub fare.

Royal Oak-based Howard & Howard Attorneys PLLC is representing BMI in the case.

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Unruly Brewing Co. in Muskegon regularly features a stage for live music events. | CRAIN’S
RAPIDS BUSINESS FIlE PHOTO

Cherry growers destroy crops as market plummets

Executives at family-owned Sparta apple and cherry grower

Joe Rasch Orchards Inc. made the tough decision this spring to destroy the company’s cherry orchard, removing and burning trees that had stood on family land for 10 years.

The decision came after 30 years of cherry production for the orchard, and many attempts to continue to keep the crop economically feasible.

While cherries are only a small portion of Rasch Orchards’ annual fruit production, company Business Manager Katie Vargas said the decision to do away with the orchard was a difficult one.

“Everything that we tried and improved on didn’t make a difference,” she said. “It’s just the continual increase in costs. It just didn’t make sense for us (to keep growing cherries) and it’s been like that for a few years. This year was the first year where we (decided) we just really cannot justify it anymore. We’re facing losses in other areas of the farm, too, so it was time to start cutting.”

Vargas said that while costs of equipment, infrastructure and labor for fruit growing have risen significantly in recent years, making it harder to stay in business, cherries specifically have experienced a significant price dip.

Joe Rasch Orchards is one of many Michigan farms that are reevaluating their orchards. Some farm owners are questioning their future in the business.

Last year, several other significant cherry growers in Michigan called it quits on the crop. That includes Doug White, third-generation grower at Maple Grove Farm, who sold his 80-acre cherry farm in November, according to a January report from publication FarmProgress.

Last year, the 156-year-old Pulcipher Orchards in Williamsburg in Grand Traverse County also tore down 110 acres of cherry trees lining U.S. 131, according to local reports.

Like Joe Rasch Orchards, both farms cited lack of income from the crop as a significant reason for their decisions.

According to the U.S. Department of Agriculture 2022 farm census, Michigan has 27,000 fruit-bearing acres of tart cherries on nearly 500 farms. The state has 15 cherry processors.

Experts are worried this is just the tip of the iceberg for Michigan’s fruit farms, and that the economic challenges in the cherry market will spread to other crops. For some, the potential windfall from selling their land instead of dealing with economic uncertainty that comes with agricultural production could prove too tempting.

“I do think we’re going to start seeing decreases in (apple) farms,” said Michigan Apple Committee Executive Director Diane Smith.

“Some of the land that is used to grow apples in the state of Michigan can be very premier land, especially when you get up to Northwest Michigan. I think growers are definitely going to gauge the future because they (can) sell out and be better off if they do that now, versus waiting another five years.”

Smith noted that smaller farms would likely close first as they will be hit harder by increasing costs.

“The fact that Michigan has (many) family-run farms is going to be really detrimental to the (state) when they go out of business,” she said. “We’re working as hard as we can to try to make sure that that doesn’t happen.”

Cost concerns

Michigan is a major player nationally for both cherries and apples.

The state is the largest producer of tart cherries in the U.S., growing nearly 75% of the country’s tart cherry supply. Michigan produced 180.5 million pounds of tart cherries in 2022 and 133 million pounds last year, according to the U.S. Department of Agriculture.

Michigan’s 2022 harvest was valued at $36.5 million.

With a record apple harvest in 2022 and a near-record in 2023, Michigan moved up a notch to become the second-largest producer of apples in the U.S., behind Washington. According to USDA data, Michigan harvested 1.36 billion pounds of apples in 2022 and 1.15 billion pounds in 2023. The Michi-

gan Apple Committee estimated that Michigan’s 2023 apple crop generated $436.2 million for the state.

However, growers continue to face headwinds, particularly with rising labor costs. For the 10th year in a row, Michigan’s adverse-effect wage rate (AEWR) increased, pushing growers’ labor costs even higher.

The AEWR, set yearly by the U.S. Department of Labor for farmers employing migrant workers on H-2A visas, climbed to $18.50 this year. That’s an increase of 6.7%, or $1.16, over last year’s rate of $17.34. Michigan’s AEWR is now more than $8 higher than the state’s minimum wage of $10.33, and is the fifth highest in the U.S. For fruit growers producing crops like apples that need to be picked by hand, the wage hike comes as a significant economic blow.

“Labor is the No. 1 issue right now,” Smith said. “We also are very cognizant of the fact that (apples are) a specialty crop that really has to be harvested by hand. This is an issue for everybody, and it’s something that is very concerning … seeing family farms potentially being put out of business due to the rising costs and labor.”

While cherries, which are generally harvested by a machine shaking the trees, are safe from some of the labor costs associated with apples, growers still have had to grapple with declining prices.

Growers’ costs for growing tart cherries exceed their returns, as evidenced by a 2022 Michigan tart cherry cost of production report by the Cherry Marketing Institute and Michigan State University Extension.

According to the report, Michigan growers must spend $0.44 to produce one pound of tart cherries. Unlike sweet cherries, tart cherries are not generally sold fresh and must be processed through freezing, drying, juicing or canning. In 2023, growers were only paid $0.15 to $0.20 per pound by processing plants, according to a cherry market trends update by GreenStone Farm Credit Services.

The USDA reported in 2022 that the average price for tart cherry growers ranged from $0.18 to $0.32 a pound between 2017 and 2021, with a low of $0.14 in 2019.

According to Vargas, of Rasch Orchards, competition from other states is a growing threat to Michigan’s fruit growers.

“There was a lot of movement from Washington state this year. They had a very good crop, both cherries and apples,” Vargas said.

“When we have years where we have good crops and there’s also high crops (in) other areas, we get a lot of movement from that and that can depress the price down.”

Over the last decade, the industry also has faced increased competition from imported processed tart cherry products such as juice concentrate and dried cherries,

Hispanic Center seeks new leadership

The Hispanic Center of Western Michigan is seeking a new leader following the departure of President Evelyn Esparza-Gonzalez. Esparza-Gonzalez left July 17 as head of the nonprofit social services organization. An announcement on her departure said the Hispanic Center is “now actively engaged in the search for the next leader who will build upon Esparza-Gonzalez’s legacy and lead the Center into its next chapter of growth and service to the community.”

“Evelyn’s dedication has been an example for all of us at the Center to follow,” said Irving Vega, a trustee of the Hispanic Center of Western Michigan, said in a statement. “Her vision and leadership have left a great mark on the Hispanic Center and the community it serves. We are grateful for Evelyn’s leadership and are committed to continuing the Hispanic Center’s mission of empowerment and support for our community.”

Esparza-Gonzalez joined the Hispanic Center in August 2017 as the director of finance. She later became interim executive director

and was named president earlier this year.

Under her leadership, the Hispanic Center saw “a substantial increase in funding, an expansion of staff, and overall organizational development,” according to the announcement.

She led the Hispanic Center’s move to acquire a church in the Roosevelt Park neighborhood in Grand Rapids to create a hub for the local Latino community. The “second home” for the Hispanic Center will soon become a site for a preschool and after-school programming, and literacy and other

particularly from Turkey. According to the U.S. Department of Commerce, imports of cheaper Turkish tart cherry juice concentrate rose 89% from 2013 to 2017, the years immediately following a near total loss of Michigan’s crop because of a late freeze.

Like cherries, apples also have been generating poor returns for Michigan growers because of production cost increases and oversupply.

A 2023 analysis of Michigan apple growers’ costs versus return by the Michigan Apple Committee estimated a Michigan apple grower operating a 45-acre farm would realize an $82,125 loss for their 2023 crop.

The Apple Committee projected losses of $103,725 for the 2024 crop.

While the Apple Committee estimated a total cost of $209 per bin of apples in 2023, the average projected return per bin was $168.

Too late to recover?

Nikki Rothwell is an extension specialist and coordinator for the Northwest Michigan Horticulture Research Center and also co-owns Suttons Bay cidery Tandem Ciders with her husband. She noted that while economic concerns around fruit production can be cyclical in nature, some farms might find out that it is too late for them to recover.

“Some people have said, ‘We’ve been through this before, and we can get through it again,’ but there’s going to be some people, unfortunately, who will go out of business or just throw in the towel,” she said.

Looking ahead, Vargas said she’s “not confident at all” about the family orchard’s future. Vargas told Crain’s last year that she was anticipating an additional $130,000 in labor costs based on the rise in AEWR.

“From the time that you and I spoke last year, the situation has gotten much worse,” she said. Now, she’s unsure whether certain sections of the orchard are even profitable to cultivate as prices drop and costs continue to soar.

“We’re going to have to be very selective about what we pick, because at $18.50 (for labor) we can’t make it make sense anymore.”

adult education classes.

“Our success in serving our most vulnerable community members is a direct result of our staff’s willingness to go above and beyond every day. The Center has become a welcoming and supportive environment because of their unwavering dedication,” Esparza-Gonzalez said. “I’ve been fortunate to work with a tremendous team of talented and passionate leaders. I’m fully confident they will be able to successfully drive all of the Center’s initiatives and its mission forward into the future.”

Evelyn Esparza-Gonzalez. | COuRTESy PHOTO
A growing number of Michigan cherry growers have been destroying their crops as costs exceed revenues. | COuRTESy OF JOE RASCH ORCHARDS

COMMENTARY

New bank rule could hurt local economic growth

Benton Harbor has seen its share of challenges over the years but each challenge that its residents face only builds their resiliency and eagerness to keep moving forward. As mayor, I’ve seen this passion up close and a part of my job as mayor is to maintain our community’s economic revitalization efforts.

Marcus

That’s why I speak out against policies that would be harmful to the community and economy here in Benton Harbor. And that is precisely why I am shining a spotlight on the Federal Reserve’s proposed new capital requirements rule, which recalibrates how banks calculate how much cash they must set aside to cover risks, and the dire consequences it could place on our city’s future.

If passed, this rule would force banks to practice stricter lending standards, meaning obtaining loans would become more difficult. Additionally, requiring banks to hold more capital as a buffer against potential losses means that they would pass on the increased costs to bor-

COMMENTARY

rowers. By making home and business ownership unattainable, especially for communities of color, this rule could perpetuate existing racial wealth gaps and further entrench systemic inequality across our country.

Consider for a moment the countless individuals within marginalized communities like mine who are striving to achieve financial stability and independence. These are individuals who have faced systemic inequities and barriers for far too long. Yet, despite these challenges, they persevere,

fueled by a shared vision of a brighter future for themselves and their families.

Now, imagine the impact that increased capital requirements could have on their ability to access essential financial services. For many, these services are not just a luxury but a lifeline — an opportunity to secure a mortgage, start a small business, or invest in their future. In Benton Harbor, where these aspirations are the heartbeat of our community, these policies are not abstract debates — they are a matter of survival.

Proponents of this proposal may argue

that it is necessary for financial stability, but after the 2008 crisis, federal regulators passed policies that have mitigated risks in the banking sector. Stringent regulations such as stress tests, liquidity requirements, and enhanced supervision are already in place and have proven highly effective in averting another financial crisis. In fact, the Federal Reserve Board itself has asserted that our banks are “well positioned to weather a severe recession and continue to lend to households and businesses.” By pursuing this plan, the board would not only contradict its own assurances but also forsake the very communities it is entrusted to serve.

Every family that dreams of owning a home, every entrepreneur with a business plan scribbled on the back of a napkin, every student eager to expand their educational opportunities — all of them depend on a banking system that is accessible and responsive to their needs. Yet, the proposal to hike capital requirements threatens to erect barriers where there should be bridges, to sow doubt where there should be hope. To our leaders in Congress, especially our Senators Debbie Stabenow and Gary Peters, I implore you: listen to the voices of communities like ours. Understand the real impact of voicing your opposition to a proposal like this one. I ask that you stand with families and small businesses in Benton Harbor and across Michigan.

All Michigan students deserve effective teachers

It’s become common knowledge in Michigan that we have a serious teacher recruitment and retention problem. The problem is most acute in higher-poverty districts, however. Michigan’s unfair school funding system that inadequately funds higher-poverty districts contributes to this crisis, leading higher-poverty districts to struggle to provide competitive compensation and experience high rates of teacher turnover.

In some districts, students wait as late as Halloween and even Thanksgiving to be placed with a teacher in their classrooms. High teacher turnover destabilizes school improvement efforts, as well as efforts to foster a positive school culture and strong relationships between students and teachers.

Particular groups of students bear the brunt of this crisis. Students from low-income backgrounds and students of color are far more likely to attend school in districts with higher rates of inexperienced teachers, teachers in “out-of-field” assignments, and teachers with emergency credentials, according to an analysis by The Education Trust-Midwest. That’s unacceptable and likely contributes to the devastating opportunity gaps facing these students.

Educators of color also are disproportionately affected by this talent crisis. Nationally, just 25% of schools educate the

most students of color. Given what we know about how teacher recruitment and retention issues disproportionately impact districts with higher concentration of poverty, this tells us that students from low-income backgrounds, and students and educators of color, are being systematically let down by Michigan’s public education system. Finding innovative new ways to build a strong educator pipeline is necessary in every district, but it’s especially important in these districts. Indeed, while many committed stakeholders are advancing solutions to address the state’s academic crisis, progress will be nearly impossible if we don’t also address this critical factor for student success: ensuring that every Michigan student has

access to a strong, effective teacher.

But there’s hope. Michigan can implement some key strategies now that are being championed by The Michigan Partnership for Equity and Opportunity — a statewide coalition which we have the honor to lead — to address this growing talent crisis.

First, we should tackle teacher salary disparities that make it much more difficult for lower-income districts to recruit and retain top teaching talent. State leaders can start by building upon a teacher salary incentive program created last year. Through this new pilot program, the state is dispersing $64 million equally across traditional public school districts with the intent that districts use those funds to increase educator compensation. However, the equal, per-pupil, distribution approach does not account for school districts’ vastly different abilities to fairly compensate educators or recruit and retain top talent.

Instead, state leaders should take a new approach and prioritize dollars to schools in districts with the highest percentages of students from low-income backgrounds. Policymakers can use the state’s new Opportunity Index as a guide. This new school funding mechanism — approved in June

2023 after a historic legislative vote — ensures that Michigan invests more school funding dollars in school districts with greater concentrations of poverty.

The new index has six bands of funding levels based on a school district’s concentration of poverty to close opportunity gaps for students from low-income backgrounds.

State leaders should target the teacher salary incentive funding to districts that have the greatest concentrations of poverty — or Opportunity Index Bands 5 and 6 — with the goal of lifting starting teacher salaries to at least $50,000 in those districts.

This will help ensure these districts can better compete for talent and better compensate early career teachers who are more likely to stay in the classroom if compensated better. By doing so, state leaders will help districts do better to ensure students of color and students from low-income backgrounds have access to strong educators.

Second, state leaders should take action to improve upon public reporting of educator data, including teacher salary data by years of experience and vacancy data. By better supporting and compensating teachers in high-poverty communities — and creating the conditions for them and their students to succeed — Michigan can take an important step toward ensuring all students are taught by strong teachers.

Alice Thompson is CEO of BFDI Educational Services Inc. Amber Arellano is executive director of The Education Trust-Midwest. Mike Jandernoa is founder and chair of 42 North Partners. They are co-chairs of the Michigan Partnership for Equity and Opportunity.
Muhammad is mayor of the city of Benton Harbor and chair of Black Mayors of Michigan.

“They’ve gone through a significant amount of consolidation across the state, and we know that for them to make decisions, they’re a little bit further off and our goal is at least to finish the rest of the heart of the village.”

First envisioned more than two decades ago as the then-Metro Health was planning to develop a new hospital and relocate from Grand Rapids’ southeast side, the Health Village today includes complementary medical offices.

The acreage also includes retail outlets, a Family Fare grocery store, a Fairfield Inn & Suites hotel, the SpartanNash YMCA, and Commonwealth Senior Living that offers independent and assisted living and memory care.

The Granger Group recently agreed to sell two parcels and two office buildings adjacent to the

hospital for $45 million to the University of Michigan, which plans to use the acreage for future expansion of the health system.

Selling the properties was “completely separate” from the projects that The Granger Group is now pursuing, Granger said.

The three projects in the planning stages would encompass an estimated 200,000 to 250,000 square feet of newly constructed space, he said. The company is still developing cost estimates.

On one of the parcels slated for development, The Granger Group is considering up to 60 or more independent senior living units. At another site, the company could develop a three- to five-story building for retail and medical uses on the main level, and “some form” of market-rate residential units on the upper levels, as well as more independent senior living.

The upcoming projects also could include a restaurant and “some form of a brewery,” he said.

The company is also looking at another medical office building and to expand the farmers market “to be all year round (with) some kind of a shelter,” he said.

Construction could begin in 2025 and would occur in stages, Granger said.

“All of this land is considered the heart of the village, and it’s

COMPANIES / PEOPLE ON THE MOVE

BANKING & FINANCE

Lake Michigan Credit Union (LMCU)

Lake Michigan Credit Union (LMCU) has hired Mario León as community relations mortgage loan officer for West Michigan. Mario brings local expertise in housing equity, financial coaching, and program development to his new role. Bilingual in English and Spanish, he will play a key part in expanding LMCU’s community lending efforts. “I see myself as a community connector,” León said. “At LMCU, I have more opportunities to educate and support people in achieving their goals.”

CONSTRUCTION

Wolverine Building Group Wolverine Building Group is pleased to welcome Jeff VanderMeulen as Director of Sales. With a strong background in commercial banking and an established reputation in development and growth, Jeff’s expertise is invaluable. He brings 13 years of experience in the financial services industry, where he has successfully built strategic partnerships. As Director of Sales, he will focus on Wolverine Building Group’s strategy and execution in sales efforts and business development.

NONPROFITS

Kalamazoo Community Foundation

BANKING & FINANCE

Legacy Trust

Legacy Trust, the largest private trust bank headquartered in Grand Rapids, is pleased to announce the appointment of Skot Welch to its Board of Directors. Mr. Welch is founder and principal of Global Bridgebuilders, a firm focused on organizational development, cultural transformation and inclusion at organizations around the world. Mr. Welch is also a venture capital fund executive, published author and motivational speaker. His appointment to the Legacy Trust Board was approved in June.

MANUFACTURING GHSP

GHSP, a leading global automotive supplier, is pleased to announce the appointment of Ludwing Vergara as Vice President of Procurement and Supply Chain Management (SCM). Ludwing brings nearly 30 years of experience in procurement and purchasing within the automotive industry. His background includes an impressive track record in global sourcing, cross-division product launch management, supplychain management, supplier development, and procurement initiatives.

Co-founder and former executive of The Diatribe, longtime community leader, and historymaking Grand Rapids Poet Laureate (the first POC and first without a college degree), Marcel Fable Price has enthusiastically taken the position of Community Impact Officer with the Kalamazoo Community Foundation. After nearly a decade of nonprofit leadership and taking the organization from filing its articles of incorporation to raising $6.5 million in its first capital campaign, Marcel now transitions to the other side of the sector. He looks forward to sharing his expertise with organizations in his portfolio and innovating grant-making. Marcel is also releasing a new book, New American Monarch, which can be pre-ordered at www. MarcelFablePrice.com.

been really important to us to make sure that we can continue to support our other partnerships and relationships that we’ve got,” Granger said.

Advertising Section

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

NONPROFITS

Literacy Center of West Michigan

With more than 20 years of experience in nonprofit leadership, Elizabeth Lucas Dombrowski joins the Literacy Center of West Michigan as Senior Director of Development and Communications. Most recently, she served as Executive Director of All Belong Center for Inclusive Education, a national organization advocating for students with disabilities.

TECHNOLOGY

Dematic

Elizabeth has an undergraduate degree in music from Valparaiso University and a master of business administration from Grand Valley State University.

Dematic has named Michael Oren as senior vice president of sales for the Americas region. Oren joins the supply chain automation and solutions provider at the company’s Americas headquarters in Grand Rapids, where he is responsible for the development of the sales strategy, including nurturing and retaining accounts, driving company growth initiatives, and building relationships with strategic partners. Oren joined Dematic from Xerox, where he recently served as the executive vice president of global services. He has completed executive master’s courses at the University of Navarra, Harvard Business School, and Stanford University, and holds a bachelor’s degree in marketing and social psychology from Miami University in Ohio.

NONPROFITS

Saugatuck Center for the Arts

The Saugatuck Center for the Arts welcomes Michael Gantt as Sr. Director of Finance & Operations. Gantt’s past non-profit leadership roles include Chief Operating Officer/Integrator at The Phoenix Society for Burn Survivors in Grand Rapids, CFO at John Ball Zoo, The Family Institute at Northwestern University, and Lincoln Park Zoo in Chicago.

NONPROFITS

Saint Mary’s Foundation

Saint Mary’s Foundation is pleased to announce that Kim McLaughlin Vice President Strategic Growth at Wolverine Building Group, has been appointed Board Chair effective July 1, 2024. Saint Mary’s Foundation, a member of Trinity Health, is the designated philanthropic arm for Trinity Health Grand Rapids. Saint Mary’s Foundation’s mission is to build relationships that inspire financial support from the community to advance the mission of the hospital and has granted back more than $100 million.

New projects on the vacant parcels include various types of housing, retail and a restaurant. | MARK SANCHEZ, CRAIN’S GRAND RAPIDS BuSINESS

standpoint, we’ve recognized political and social fragmentation as one of the leading threats to our business communities, and we’re certainly experiencing that here. The West Coast Chamber strives to be the sane center in all of this.”

Recent survey data may support Owczarski’s concerns about the influence of politics on the business community. The West Coast Chamber commissioned a 2024 Ottawa County economic forecast that included a survey of 49 chamber members in late 2023. While the business confidence index remained similar to the prior year, 81% of the respondents said the “political environment will negatively affect their business.” That compares to 71% across the broader West Michigan region, according to the forecast produced by Paul Isely, associate dean and professor of economics at Grand Valley State University’s Seidman College of Business.

While the data did not specify which level of government businesses were concerned about, “I can say that the view was far more negative (on the) effect of govern-

THIRD

From Page 3

apartments and townhomes, 56,970 square feet of commercial space, and a new parking garage to replace one already on site.

This proposal marks the third time the pair has devised housing plans for the site since acquiring it from the bankrupt Jacobson’s in 2002. Wierda and DeVries constructed a number of commercial buildings there between 2002 and 2005 as part of a larger plan. But the original housing element — more than 100 condos across several tall buildings — was derailed in 2007 by the financial crisis and resulting Great Recession. A later proposal for senior housing and a hotel was put on ice when the COVID-19 pandemic hit in 2020.

To Gilmore, the project is a no-brainer.

“Long term, it basically enhances the community by increasing the walkability, the business neighborhood and the residential neighborhood,” Gilmore said. “In my mind, it’s all positive.”

Rob Lutz, who also grew up in East Grand Rapids before leaving for college in 2001, came back to town in 2011 and purchased Big Bob’s Pizza, which he continues to own and operate in Gaslight Village.

He said he believes “the timing is right” for a mixed-use multifamily development on the developers’ property. While East Grand Rapids may be known as a community of single-family homes, multi-unit buildings like one he owns on Lovett Avenue tend to fill up quickly, he said.

“I would love to see more development go into the area and allow for more people to experience this community,” he said. “I think it could continue to make Gaslight a

ment than others in West Michigan or from the Ottawa County survey the year before,” Isely said in an email to Crain’s.

Referendum?

Founded by county board Chairman Joe Moss and co-chair Sylvia Rhoadea, Ottawa Impact has fielded criticism from both Democrats and Republicans. Early on in its term, the board eliminated the county’s diversity, equity and inclusion office, which had been partially funded or supported by several large local employers, including Gentex Corp., Haworth Inc. and Shape Corp.

Since then, the Ottawa Impact-led board has been embroiled in, or linked to, multiple lawsuits challenging its employment practices and attempts to oust county personnel from their jobs if they didn’t align with the group’s philosophy. Perhaps the most high-profile case involved the board’s 13-month attempt to fire the county’s health officer, Adeline Hembley, who agreed to drop a lawsuit against the Ottawa Impact county board members in exchange for keeping her job.

“This isn’t aligned to any particular political party, but when

destination for people.”

Wierda and DeVries declined to comment for this story ahead of the planning commission meeting. But Wierda previously said he believes their proposal has “the critical mass” of retail and rental units that the city needs.

“I believe what we’ve proposed and what we’ve started working through can and will be transformational to Gaslight Village,” he said.

Ramona Park and Jacobson’s

While the mostly vacant project site has sat neglected for years, it also has a storied history of providing entertainment and retail.

The site was once part of Ramona Park, a more than 20-acre amusement park established in the 1880s by the Grand Rapids Street Railway Company.

At various points in its 70-year history, the park offered a carousel, the Jack Rabbit Derby wooden roller coaster and other rides, concessions, a dance pavilion, a fun house and steamboat rides. The Ramona Theatre Pavilion on its grounds also drew touring vaudeville acts with performers including Buster Keaton, Will Rogers and Jack Benny, according to historian Gail Snow in her 2013 book, “Remarkable Ramona Park.”

Ramona Park evolved out of East Grand Rapids’ status as a resort town, according to East Grand Rapids History Room curator and longtime resident Mary Dersch. Beginning in the 1870s, out-oftown guests and Grand Rapids residents alike would hop on the Grand Rapids and Reeds Lake Railway that ended on the west shore of the lake and spend the day picnicking, boating and swimming.

The park operated from 1881 until 1954, and Dersch said the

there’s a lack of transparency, a lack of process, that’s concerning,” Owczarski said.

The nonpartisan West Coast Chamber doesn’t have a political action committee, nor does it endorse candidates.

Meanwhile, Ottawa Impact has the full support of the Ottawa County Republican Party, which has dug in to support Ottawa Impact’s social and political views. For example, in May the Ottawa County GOP in a newsletter called for effectively boycotting dozens of businesses that provided financial or in-kind support for Grand Haven Pride, which hosts an annual festival supporting the LGBTQ+ community.

“Take a look at the businesses supporting these events and ask yourself if this is the type of business you want to spend your hard earned tax dollars supporting,” according to the newsletter, which lists 30 small and large businesses in the area that had pledged support for Grand Haven Pride. The county GOP specifically brought attention to public drag shows during the 2023 festival.

The Rev. Jared Cramer, rector of St. John’s Episcopal Church in Grand Haven and sponsorship lead for Grand Haven Pride who

proposed development site was at the center of the action.

In 1966, John Gilmore was successful in convincing Jackson-based Jacobson’s executives to open a store in East Grand Rapids at 2255 Wealthy. The store thrived in Gaslight Village for more than three decades. The chain added a parking garage in 1991 that’s now the last vestige of the sprawling store complex.

Jacobson’s declared bankruptcy in January 2002, and Jade Pig bid $3.75 million to acquire the property at auction that September, according to media reports at the time. The developers earlier that year had also acquired the former Ramona Medical Center that was built next door at 515 Wealthy in 1960, the reports said.

Wierda and DeVries soon went to work devising plans for the former Jacobson’s. First, they hoped to save the building by securing a retailer for some of the space and moving the East Grand Rapids public library off the lakefront and into the store’s core.

That pitch met stiff resistance from a local task force, and the city determined it would cost too much to reconstruct the floors to support the weight of thousands of books.

The developers also were unable to secure retail tenants for the space, so they demolished the 150,000-square-foot building in late 2003, according to past media reports.

A third act?

By early 2004, the developers had devised the first of three successive mixed-use playbooks for the vacant Jacobson’s and Ramona Medical Center sites.

Their first iteration included 117 condos across six buildings — one of which was to be 12 stories —

organizes businesses’ financial support, said he reached out to “well over” 200 businesses seeking support for the event.

“There are some who don’t feel like they can support Pride for fear of boycotts, but that’s far from the majority,” Cramer said in an interview. “The (Ottawa County) GOP kind of called out all of our sponsors in their newsletter with a kind of call to arms. The result of that was I got a lot more sponsors, because people want to be on that list.”

Cramer is currently suing Ottawa County, claiming religious discrimination after he says county board leaders rebuffed his requests to give an opening prayer at a county board meeting. U.S. District Judge Jane Beckering earlier this month rejected the county’s request to dismiss the case.

Field Reichardt, a longtime GOP organizer who most recently has worked informally with anti-Ottawa Impact candidates, says this year’s primaries are “beyond a referendum” against Ottawa Impact.

“I see this as an effort by an amazing coalition that includes conservative Republicans, moderate Republicans, Independents and Democrats to bring Ottawa County back to the stolid, carefully managed government that we were

plus four commercial office and retail buildings fronting Wealthy Street that were built and are now managed by CWD Real Estate Investment Services, where Wierda serves as a partner.

But the condo development, dubbed “The Derby,” proved controversial when residents learned the tallest building was to be 150 feet high. Residents complained it would block the lake views and too drastically change the character of the quaint Gaslight Village.

famous for for years,” he said.

Voter turnout could play a significant role in the primary’s outcome, Reichardt said. For example, Democratic Commissioner Chris Kleinjans took office earlier this year after defeating Ottawa Impact-backed former Commissioner Lucy Ebel in a May 7 recall election for the District 2 seat.

“More people voted in that election than voted in the primary in 2022,” he said.

The August 2022 primary drew 2,788 voters while the recall election this May brought out 4,167, according to election results.

Kleinjans is currently suing his former employer, MSU Extension, claiming that his firing in June violated his First Amendment rights and stemmed from political pressure from Ottawa Impact.

Meanwhile, Reichardt cited three county commission seats that could potentially flip from Ottawa Impact-backed commissioners to GOP opponents: District 1, which spans Olive Township and Park and Port Sheldon townships along the lakeshore; District 5, Chairman Moss’s territory in the southeastern portion of the county; and District 11, a large swath of the county northeast of the Grand River.

“It’s always been a small town with big politics,” Dersch said, recalling the uproar, which local newspapers chronicled in great detail over the course of several years.

Jade Pig ultimately cut the tallest building height in half and the density to 107 units, winning its planned unit development rezoning approval from the city. But a group of outraged citizens under the moniker “Save East Grand Rapids” organized a referendum to overturn the rezoning.

The opposition was ultimately unsuccessful. The late philanthropists and business leaders Peter Secchia and John Canepa backed a “Reignite Gaslight” advocacy push and voters ultimately upheld the rezoning on a vote of 2,6052,055. Dersch recalls it as a time when “tempers flared,” and it “created a rift” in the community.

As late as 2006, Jade Pig still planned to build the condos. But their plans fizzled when the housing market crashed in 2007.

By 2020, they brought a new proposal to the city for 91 units of senior living, shops, restaurants, medical offices and a 106-room hotel.

The developers introduced that concept at the March 11, 2020, planning commission meeting,

just days before COVID-19 hit Michigan and the state locked down. The planning board didn’t meet again until November as the city dealt with the health crisis. By then, Wierda and DeVries had put their proposal on ice.

Housing shortage

Meanwhile, the newest project design is emerging against the backdrop of a massive housing shortage in West Michigan, with the region projected to need an additional 35,000 units by 2027 to keep up with demand, according to a 2023 study by Housing Next. Wierda and DeVries said in documents filed with the city last month that they believe the mix of 180 units of residential alongside commercial better meets the current market demand.

They hope to reserve about 10% of the housing units as attainable to those making 100% to 120% of the area median income. Median household income in East Grand Rapids in 2022 was $160,417, according to the U.S. Census Bureau’s latest estimates.

Wierda said last month that he plans to move to East Grand Rapids in the fall and wants to see the younger generation be able to afford to live in the community.

“I don’t want to completely gentrify the area,” he said.

The site sits north of Wealthy Street SE in Gaslight Village. | RACHEl WATSON, CRAIN’S GRAND RAPIDS BUSINESS

ACRISURE

Page 1

and M&A.

Prior to his work at Abu Dhabi Investment Authority, Miller was global head of strategy and corporate development for MassMutual. Miller’s appointment comes as Acrisure continues exploring an initial public offering that Williams said in May will come “sooner as opposed to later.”

“I’m pleased to welcome Aaron to this important role at a pivotal time for the company,” Williams said in a statement. “Aaron understands our mission, purpose and strategy and importantly, knows key leaders around the organization.”

RENTAL

From Page 1

local housing stock.

“We welcome visitors,” said Saugatuck City Manager Ryan Cummins. “Saugatuck — like most other communities across the state, the country, the world — with short-term rentals, we are just trying to find the right balance. Our planning commissioners and city council all recognize the importance of short-term rentals and that they’re important to our economy, and want to see short-term rentals continue to be a part of Saugatuck, but just in the right amounts in those R1 residential districts.”

Chitwood, who spoke during the meeting in opposition to the new policy, said she thinks the decision will hurt the city’s tourism economy in the long term.

“I think the town is going to

FLAVOR

From Page 1

how long it takes for a hot product to get to that peak, and how long it stays at the peak, and then how long it takes for it to go away,” said Roger Nahas, executive vice president of global research and development and innovation for Kalsec. “That’s what we do and we’re really good at it, but humans have limitations.”

While a human tasting panel can offer an educated response and description of different flavors and heat levels, those responses also are constrained by the individual’s cultural, environmental and emotional context, which can make it hard for companies like Kalsec to get unbiased feedback. Humans also can experience fatigue or be oversaturated by certain flavors and lose their sensitivity.

By measuring the brain’s response to heat and other flavors in real time, the T-Box can develop an impartial measure of how the tasters perceive flavors. The technology computes the mental state of a person consuming a food or flavors that might be hard to describe, giving developers a readout that measures and displays the brain’s response in replicable data points. T-Box, a new electromagnetic headset that will measure human sensory reactions to foods and flavors, relies on artificial intelligence

Acrisure declined to grant an interview for this report.

Alexander Calderone, president of the Birmingham-based Calderone Hudson Group, which provides business valuation and turnaround consulting services, said the move could signal a number of possibilities, including a lack of investor confidence in the current CFO or a shift in Acrisure’s growth strategy.

“Oftentimes, if an equity sponsor is pushing for a CFO replacement, and they provide the candidate, it typically means that they feel more comfortable with the new candidate,” Calderone said.

“It could be that the former candidate just wasn’t getting the job done to their standards, or it could mean that the company is going to

shrivel up and die, because if people don’t have a place to stay, why come here?” she said.

The Allegan County town of fewer than 900 permanent residents is about 10 miles south of Holland and 20 miles north of South Haven, between Lake Michigan and the Kalamazoo River.

Currently, about 158 of the town’s 501 housing units in R1 districts, or 32%, are short-term rentals, according to a report prepared for the city by David Jirousek, of Grand Rapids-based Horizon Community Planning. Of the housing stock in the “hill” district east of Butler Street, known as the community residential R1 district, nearly 37% (123 of 334) are vacation rentals, per the report.

Cummins said the 20% cap likely won’t take effect until later this year, as the zoning change still faces a few more layers of public comment and city approvals.

to then compute the data and model how the brain responds.

“We want to get a good objective evaluation of how our flavors are perceived,” Nahas said. “Specifically, in the world of heat, it’s hard to describe what kind of heat you like. If it’s too hot, it’s going to overwhelm me, (or) if it lingers … a little bit too long it (starts) building up. We want to experiment with different kinds of heat (and) we want to understand what would be the consumer’s reaction to it, whether they like it or not. It’s hard to put that likeability into words.”

By directly measuring how the brain responds to different flavors, Kalsec will use T-Box to provide an objective set of data to compare with sensory analysts.

“I am personally super excited about it, just because of how disruptive it is, and how daring it is, in terms of doing something that has not been done before,” Nahas said. “More importantly, it has (potential) to allow us to learn about the sensory impact of the extracts that we sell in ways that your tongue cannot describe.”

Kalsec develops ingredients, flavorings, hop products and naturally-derived colorings for food and beverage companies globally, “from the biggest CPG (consumer packaged goods) you can imagine down to mom-and-pop organics,” said Mark Staples, executive director of marketing for Kalsec.

undertake a strategy that the new candidate is better suited to lead,” such as a shift from growth by M&A to growth by IPO, he added.

Elliott Bundy, chief communications officer at Acrisure, said any speculation that the personnel changes reflect a lack of confidence from Abu Dhabi Investment Authority “is totally ridiculous and off base.”

“There was no push from anyone for this addition to Acrisure’s leadership and our strategy remains firmly fixed,” Bundy said in an email.

Calderone also noted that it’s not uncommon for companies to hire new CFOs when contemplating a public offering. That’s because “the skill set for a chief financial officer that builds a business

Advocates for the cap, including some members of a task force assembled in March 2023 to study the issue, have said that they want to limit the number of vacation rentals to address the shrinking pool of housing for year-round residents.

“There are mixed feelings on (the cap) from our policymakers here, but … some council members raised concerns with our population loss over time,” Cummins said. “Census data from the last few decades shows that we’re just continuing to lose full-time residents, and they have concerns about what that means for the community in the long term.”

U.S. Census estimates show the town’s population has fluctuated between 868 and 875 residents between 2020 and 2023, down from 1,065 at the 2000 Census.

Cummins noted that people who already own and operate shortterm rentals would be allowed to

While the company is unable to disclose the names of its customers, Staples said that “if you eat salsa, there’s a very high chance you’re consuming our capsicum products or heat products.” He noted that Kalsec works with both global leaders and off-brand companies to be included in a wide variety of supermarket products.

Kalsec has locations across the U.S., South America, the United Kingdom, Asia and Europe, including a research and development lab at Wageningen University in the Netherlands, which opened in November.

That lab, located in what Nahas described as Europe’s “Food Valley,” a hub for research and development around food, is where Kalsec first started cultivating its relationship with Thimus.

“Even though we’re a Michigan company, we are a global leader,” he said. “We do rely on science and innovation as a key competitive advantage for us. Because of that, our reach is global, and this (partnership) is the fruit of that international reach.”

Staples said technology like the T-Box can overcome challenges related to regional and language differences when it comes time for the company to create globally-distributed flavors.

“Hot in the United States is much different than hot in the U.K. versus Singapore. They’re

from the ground up is a bit different than the skill set necessary to take a company public,” he said.

“When a company goes public, it has to register with the Securities and Exchange Commission and financial reporting becomes much more onerous,” he said. “Disclosures change very significantly, and there is a unique skill set that organizations need in order to go public.”

Calderone said if the latter is the case, it makes sense for Acrisure to build investor and public confidence in a new hire “well in advance of the IPO.”

Erik Gordon, an assistant professor at University of Michigan’s Stephen M. Ross School of Business specializing in corporate governance, said in an email to Crain’s

keep their licenses until selling or transferring their property, per a grandfather clause embedded in the new policy.

Chitwood said she fears her property’s resale value will drop once the cap takes effect because the next owner wouldn’t be able to use the house as a vacation rental.

“It’s all of us out-of-towners that pay for this beautiful city in our taxes,” she said. “They’re a lot higher than for (principal residents). So the business owners are going to suffer. The property owners are going to suffer, and the property values are going to plummet. Why would you want to buy here? It is a tourist town. Good luck to those … (year-round residents) absorbing our taxes.”

Cummins said he doesn’t expect to see a drastic shift in the balance of rental versus non-rental properties over the next few years, based on the policy’s grandfathering pro-

very different levels,” he said. “This gets into the nuances much, much more directly.”

Mario Ubiali, founder and CEO of Thimus, told Crain’s via email that the T-Box offers an “unprecedented” view into the flavor-perception process.

Grand Rapids Business that he also believes Acrisure’s choice of new CFO likely points to the company’s plans for an IPO.

“Miller’s background is in dealmaking, so he most likely has been dropped into Acrisure to take it public or find a buyer,” Gordon said. “He’s not a garden variety CFO.”

Miller earned a bachelor’s degree in economics and public policy studies from Duke University and a master’s degree in business administration from Harvard Business School.

Acrisure said Miller will play a critical role in helping the company “deploy and allocate capital effectively to accelerate growth” and prepare Acrisure to meet clients’ needs in the future.

vision. He said he also doesn’t expect a negative effect on the city’s revenues. Saugatuck non-homestead property owners pay an additional 18 mills in taxes, but those dollars primarily go to the schools, he said.

Cummins noted that the tussle over short-term rentals stems primarily from noise, nuisance and trash complaints from neighbors over the years.

The cap on short-term rentals would be paired with other zoning code changes, including a new police powers ordinance that would require annual licenses and yearly inspections, more trash cans for higher occupancy properties, a cap of no more than 12 residents per rental, fewer visitors to each rental, and stricter quiet hours. The policies would be enforced by a parttime code compliance officerwho would respond to complaints made through a hotline.

“Instead of asking untrained humans to express complex opinions on why and what they liked in food, we can tap straight into the preconscious processes and provide repeatable datasets to (corporations) who need data-driven product development,” he said.

Project Manager II, responsible for all aspects of the project lifecycle: planning, scope definition, design, execution, and delivery; organize and oversee the staffing of the project; ensure the engineering integrity of systems such that the contractual specifications are met with respect to system functionality, productivity, reliability, quality, and safety; among other duties. BS+60 mos experience; 3550% domestic and international travel. Send resume to L. Baker, TGW Systems, 3001 Orchard Vista Dr., Ste. 300, Grand Rapids, MI 49546; Ref. PMII-GRMI. No phone calls please. EOE.

Far from a newcomer, Grand Rapids’ new economic director touts 16 years at the state

Sarah Latta Rainero on July 8 stepped into her new role as the city of Grand Rapids’ economic development director. The position had been vacant since October 2023 and was filled on an interim basis by Jono Klooster, who stepped down from his role this summer. Latta Rainero grew up in Kentwood and now resides in Grand Rapids. She has spent the last few years serving on the board of Uptown Grand Rapids Inc., which advocates for business and neighborhood development on the city’s east side. In joining Grand Rapids city leadership, Latta Rainero plans to draw from her 16 years of experience in her previous role working for the Michigan Economic Development Corp., where she was involved with real estate transactions and brownfield projects throughout West Michigan. She spoke with Crain’s about the city’s role in advancing not only large projects but also supporting emerging developers, and one downtown project she finds particularly exciting. | By Kate

Why did you want to step into this more local role in economic development at the city of Grand Rapids?

This position was intriguing because of the ability to have more impact on the ground in the city, have a closer beat to what’s going on, and an opportunity to serve the city and just give back. We call the community home and the ability to just be closer to the project portfolio here is a really nice piece that was most intriguing to me. Some of the work on the Uptown Inc. board was just really invigorating enough to make me want to get closer to some of that and be on the same side of the table as the city advocates for projects.

You’re bringing strong economic development experience with you from the state level. How will that help you in this role?

A lot of it is really transferable. I most recently was covering a portfolio of region four and eight (which includes Grand Rapids), which covers about a fourth of the state’s population. I feel like a lot of my life at the MEDC was really built around the placemaking piece of what the agency was prioritizing.

What’s transferable here is a lot of those relationships I built naturally in that role over the last 16 years. That’s helpful because there is already a ground level of trust as well as the toolbox at the state and trying to navigate the city’s processes and help shepherd some of those deals through the state process. I want to press the point on my desire to really leverage my state background to really advocate for the city and getting projects done, whether that’s through the state tools, creative financing or otherwise.

Grand Rapids has a slate of transformational projects underway in and around downtown, including the soccer stadium and Acrisure Amphitheater. What is the city’s role in these types of projects?

That’s my main focus: To help execute some of the larger projects making their way through the approval process and across the finish line. The first responsi-

That’s my

bility is to listen to the community, and lift up other (projects) along the way that are reacting to the momentum there. Alongside that, we want to figure out a way to capitalize some of the work of the emerging developer group. Essentially, we want to get more

faces in the development pipeline and find a way to do that alongside the community and neighborhoods based on what they are prioritizing.

Are there any new incentive tools that you think Grand

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Rapids could leverage for new projects?

I’m excited about the Fifth Third Bank building transitioning over from office. I don’t think the state has seen many projects, if any, that have used (the amended brownfield law in 2023 that includes housing development for tax capture) in that capacity, which was part of the intended purpose of activating vacant office space. Especially with what the region has prioritized around housing, there is a lot to unpack there and I’m excited to be a part of it.

Sarah Latta Rainero filled the position of Grand Rapids’ economic development director, a position that had been vacant since 2023.

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