Economic Development

Coverage of projects, big and small, and the people who create them, which promote the economic health of a community, including manufacturing, retail, office, and hospitality developments.

Livonia’s Talan SBS turns small-biz consulting into new jobs

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Community Development

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September 16, 2010

Josh Holowicki and Todd Luthanen have been businessmen for years, but it took a while to decide which market to serve. That is until last year, when the two decided to go into the business of helping small businesses."We have always been passionate about small business," says Holowicki, director of business development for Talan SBS. The Livonia-based consultancy is on target to reach $350,000 in revenue this year and $500,000 next year. It now has a staff of two employees, six independent contractors, and one intern. It expects to add another 6-8 independent contractors over the next year as it grows its customer base from three full-time clients and a smattering of projects.Holowicki and Luthanen, both serial entrepreneurs, believe a business is a business at its core. They are there to make sure that purpose stays on track."We're not teaching dentists to be good dentists," Holowicki says. "We teach dentists how to run a good business."Source: Josh Holowicki, director of business development for Talan SBSWriter: Jon Zemke

Latest in Economic Development

Largest lithium ion battery plant on the continent opens in Livonia

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Community Development

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September 16, 2010

The largest lithium ion battery factory on the continent now belongs to Metro Detroit after A123Systems opened its newest facility in Livonia this week.With a capacity of 600 megawatts (which means it can produce lithium ion batteries for 30,000 vehicles annually) when fully operational, the plant is believed to be the largest of its kind in North America. A $249 million U.S. Dept of Energy grant received last year made possible the opening of the 219,000-square-foot facility. "When it comes to hiring there are a lot of highly skilled engineers, management, and laborers here," says Andy Chu, vice president of marketing & communications for A123 Systems. "There is a highly skilled labor pool here." The plant will manufacture prismatic cells and systems. These are seen as key components of the lithium ion battery, which is the primary piece to the next generation of electric vehicles made by the likes of Fisker Automotive. The factory will facilitate the production process, R&D, and manufacturing of the lithium ion battery's components, cell and module fabrication, and the final assembly of complete battery packs ready for vehicle integration. A123 Systems is based in Massachusetts and has a large engineering facility in Ann Arbor. It plans to open a coating plant in Romulus early next year, a move made possible by the federal grant and $125 million in state tax incentives from the Michigan Economic Development Corp. Source: Andy Chu, vice president of marketing & communications for A123 SystemsWriter: Jon Zemke

HESCO Sustainable Energy harnesses energy from sludge

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Economic Development

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September 16, 2010

HESCO Sustainable Energy isn't a head-turning, flashy, glamorous start-up. However, the Warren-based company has a lot of potential to cut out a huge chunk of energy costs for sewage treatment plants by harnessing the power of the sludge it's trying to clean.The 4-year-old company recently received a patent for its technology that harnesses the energy produced by organic sludge in wastewater and food processing plants. That energy is then rerouted into the plant, accounting for anywhere from 50-70 percent of its energy needs. "It really depends on the scale of the facility," says Kevin Livingston, president of HESCO Sustainable Energy.Livingston and his partner Glenn Hummel have both worked in the waste industry since college. In that time they developed the system that harnesses the energy from turning Class A solids into pathogen-free material."We came up with an innovative way to solve a problem in our industry," Livingston says. "We got excited about it."For good reason. HESCO Sustainable Energy made its first hire earlier this summer and expects to add 5-10 more within three years; it projects 100 employees within 15 years. The company has tested its technology at a sewage plant in Delhi Township and expect to open a second system in Grandville by the end of the month.Source: Kevin Livingston, president of HESCO Sustainable EnergyWriter: Jon Zemke

Renaissance Venture Capital Fund raises $50M

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Community Development

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September 9, 2010

The venture capital fund of all funds in Michigan is now fully operational, and it has ties all over Metro Detroit.The Renaissance Venture Capital Fund closed a $50 million investment vehicle earlier this week from a number of local business institutions. The downtown Ann Arbor-based firm, which also has an office in downtown Detroit, plans to invest that money in both local venture capital firms and out-of-state venture capital firms with the intent to invest in local companies. "It's probably going to invest exclusively in other venture capital funds," says Chris Rizik, CEO of the Renaissance Venture Capital Fund and a Northville resident. "We feel we will have more leverage that way."The fund of funds has already invested almost $6 million (for a total commitment of $20 million) in half-a-dozen venture capital firms. Those firms in turn have invested more than $23 million into 12 Michigan companies, creating about 200 new jobs. Those companies have leveraged that investment to receive over $146 million in further venture funding. Renaissance Venture Capital Fund expects its money will touch 100-150 companies, creating hundreds of new jobs rooted in the new economy. It has already disbursed its first profits to investors. The fortunate six venture capital firms include Ann Arbor's Arboretum Ventures and RPM Ventures, along with Kalamazoo-based T-Gap Ventures. Out-of-state firms receiving an allocation include San Francisco-based 5AM Ventures, Houston's DFJ Mercury Ventures, Illinois-based MK Capital, and Florida's Arsenal Ventures. The last two are opening Michigan offices following Renaissance Venture Capital Fund's investment. The Renaissance Venture Capital Fund was put together by the Business Leaders For Michigan and is funded by the likes of DTE Energy, AAA, Blue Cross Blue Shield of Michigan, and Huntington Bank. Most other funds of funds are supported with public money. Michigan's private model makes it an industry leader and example of how Michigan is breaking new economic ground when it comes to reinventing its economy."That isn't happening anywhere else in the country," Rizik says.He expects his 3-person firm, which is looking at adding interns next summer, to finish disbursing the money over the next year or two. Fundraising for the next investment vehicle, which might also make investments directly into companies, will begin in 2012.Source: Chris Rizik, CEO of Renaissance Venture Capital FundWriter: Jon Zemke

NextWave incubator welcomes start-ups

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Arts & Culture

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September 9, 2010

The start-ups are coming soon to the NextWave incubator in Troy. And they're bringing more than a little creativity to the suburban business-class suburb.The exterior of the small business incubator at 950 Stephenson Highway looks like your typical suburban office building, measuring three stories in height with a big corporate logo on the side (DuPont is on the third floor). The interior is shaping up to be something much different. Office walls are coming down and bright, vibrant colors are going up on whatever walls are left. Stale cubicles are leaving, making room for office furniture that looks like it was taken directly out of a cutting edge, new economy firm in Ann Arbor or Royal Oak. "We want to create a culture here," says Jeff Sloan, director of early stage portfolio at NextWave. "This isn't just a place to work. This is a place to be successful. We believe that creative space fosters creative thinking."Creative is the right word for what Sloan, of StartupNation fame, and his partners are doing at NextWave. They are turning old offices into white-wall rooms where teams can lock themselves in and brainstorm in dry erase marker wherever they want. A small auditorium is being turned into a media center so companies on the verge of making an announcement can invite TV crews for press conferences or one-on-one interviews and broadcast directly from the building, hassle free.NextWave controls two floors of the 80,000-square-foot building. It will host first-stage start-ups just getting on their feet and second-stage firms looking to take the next big step. All of these firms will have access to business mentoring, coaching, networking, and investment resources in exchange for a stake in their firm or technology.So far, seven first-stage companies and five second-stage firms have signed on, with some already moved in. Sloan hopes to finish building out the space by this fall and be at capacity (30 companies) by the end of the year. The incubator is focusing on firms based in the new economy but is open to all ideas."We tried to keep it high-tech but we have seen some great consumer companies that we're going to invite in," Sloan says.Source: Jeff Sloan, director of early stage portfolio at NextWaveWriter: Jon Zemke

Cisco launches local healthcare IT internship program

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Arts & Culture

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September 9, 2010

A number of local colleges are partners with the Cisco Networking Academy to create student internships in healthcare-based IT.The Workforce Retraining Initiative will include eight schools across Michigan, including Oakland Community College, Baker College, Henry Ford Community College, and Washtenaw Community College. Beginning this fall, those colleges will offer a Health Information Networking course and pair students with local IT firms for internships as a way of directing more students toward careers in healthcare IT.Cisco is currently looking for firms to partner with for this project. Among those that have signed up are Netarx. The Auburn Hills-based IT firm has experienced rapid growth in recent years, expanding its staff to more than 200 employees and a handful of interns today. It has dozens of open positions and is looking to expand its internship program.For information on the program, click here or send an email to wri_michigan_info@cisco.com.Source: CiscoWriter: Jon Zemke

RTT lands VC investment from Siemens, adds jobs

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Arts & Culture

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September 9, 2010

Realtime Technology, commonly known as RTT, is picking up a lot of checks these days, and that's a good thing. Revenue up, check. New hires in Royal Oak, check. Venture capital investment from major company, check.That last check comes courtesy of Siemens Venture Capital GmbH, which recently made a capital investment so it can execute the next phase of RTT's growth strategy. RTT specializes in high-end visualization technology. Three-dimensional visualization software and services are utilized in the automotive, aviation, and consumer goods industries. It will now run at the Siemens Team Center to help improve these products."Everything we do these days is moving toward customization," says Peter Stevenson, co-CEO of RTT. "This partnership lends itself toward that."RTT has also watched its revenue pop this year, up 58 percent in the last six months. It's also adding people in its Royal Oak office, where it has 65 employees, six independent contractors, and 3-4 interns. It has made 20 hires over the last year and expect to add 20 more in the next six months.Source: Peter Stevenson, co-CEO of Realtime TechnologyWriter: Jon Zemke

NY Times hails Midtown’s rise

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Arts & Culture

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September 9, 2010

Detroit's Midtown neighborhood is building on its past, not tearing it down willy-nilly. It's an economic development policy that is garnering national attention, and for a good reason.Excerpt:DETROIT — In sharp contrast to the rest of the Detroit metropolitan area, an area known as Midtown just north of the central business district has been holding its own in the recession.Much of the success of Midtown — as it was branded a decade ago — is a result of the strength of institutions like Wayne State University, the Detroit Medical Center, the Henry Ford Hospital and the Detroit Institute of Arts, all of which contribute students and employees as well as residents.Another component of Midtown’s success is that its developers are refurbishing older buildings, using tax credits and public financing, as much as they are building from scratch.“For a long time, there was a big effort to tear things down in Detroit,” said Michael Poris, a principal of the architecture firm McIntosh Poris Associates, which is restoring a former vaudeville house in Midtown for multiple uses. “But if we have all these great historic buildings here, why not take the historic tax credits and reuse them? Plus it’s a greener, more sustainable form of development.”According to the CoStar Group, a real estate information company in Bethesda, Md., the vacancy rate for office space in Midtown — including an adjacent area called New Center, where the former headquarters of General Motors now houses state offices — stood at 8.2 percent in the second quarter of this year.The vacancy rate in Detroit’s central business district, which at 24.5 million square feet has 3.5 times the space of Midtown, was 19.5 percent in the second quarter of 2010.Read the rest of the story here.

Xconomy on U-M Dearborn’s Innovation Index increase

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Community Development

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September 9, 2010

The new economy is rearing its head in Metro Detroit, and it looks good. But then again, when don't new jobs, investment, and innovation look good?Excerpt:If you squint just the right way at new numbers from a quarterly "innovation index" released by the University of Michigan-Dearborn, you might just believe that Michigan could be headed toward an actual end to the recession.The index, which measures things like loans, VC funding, and new incorporations rose to 89 (out of 100) in the first quarter of 2010, up from 83.3 in the fourth quarter of 2009. This is the highest rise in the index since 2008.The jump is attributed to an increase in trademark applications and incorporation filings, but new university spinoffs and economic development efforts are also contributing to the improving figures.Read the rest of the story here.

The Vinyl Truth

By Tanya Muzumdar

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Arts & Culture

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September 9, 2010

Metro Detroit's indie rock labels aren't after gold and glory (though both would be nice). They're pressing vinyl, booking shows, and producing CDs because the local music community is what sustains and inspires them. This is lo-fi entrepreneurship with heart, a real rock effort to seed the ground with Motown's next generation of bands.