Innovation News

Detroit Electric to move HQ here, create 300-500 jobs

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Economic Development
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August 19, 2010

The electrification of the automobile is supposed to be the future of motorized vehicles. If so it will mean a lot of new jobs in the area, and Detroit Electric is stepping up as the latest company to fill that void.The Brighton-based firm is establishing its world headquarters and technical center in Metro Detroit with the help of a microloan from the Michigan Microloan Fund Program. What is now a two-person operation is expected to become a business that employs 300-500 people at its headquarters/technical center to head up the production of a variety of electric vehicles within the next year or two."We're trying to bring quality, affordable cars to the masses right now," says Don Graunstadt, CEO of the North American operations of Detroit Electric.A Chinese company recently revived the Detroit Electric brand that had been dormant since the early 20th Century. It is currently modifying European vehicles so they become more electric reliant and is working on manufacturing its own cars there. The company plans to execute the same plan in North America. It plans to do this by utilizing existing engineering and platforms from other auto manufacturers, a move that is expected to significantly cut costs. The goal is to have eight models on four different platforms and begin selling these vehicles to fleet markets.Source: Don Graunstadt, CEO of the North American operations of Detroit ElectricWriter: Jon Zemke

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GE invests $20M in Van Buren Township, creates 130 jobs
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Community Development
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August 19, 2010

A major international corporation is making a major investment in Metro Detroit now that General Electric is dropping $20 million into its Van Buren Township office.The 118-year-old company originally founded by Thomas Edison is setting up a proprietary development and manufacturing process center that should create 130 jobs over the next decade. GE Aviation will use the center to create commercial and military jet engine applications. It will also work with at least one local university to help further development of these applications.To help make this deal possible (GE was also considering making this investment at several of its other locations around the world) the Michigan Economic Development Corp agreed to give the multi-national corporation a $2.3 million tax credit over 10 years. Van Buren Township is also considering granting a tax abatement.GE already employs 533 other people at the site and expects to add more.Source: Michigan Economic Development Corp and General ElectricWriter: Jon Zemke

Global eServices & Solutions plans to hire in Troy
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Arts and Culture
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August 19, 2010

Global eServices & Solutions is a small business in Troy specializing in protecting other small businesses. Think of it and its founder, Ashraf Samuel, as the little entrepreneur that roared at the big, bad guys in IT. The 3-year-old firm specializes in providing IT security for other businesses. Its latest product provides a total package for small- and mid-sized businesses that goes beyond a small squad of long bowmen. It also provides online marketing tools and IT risk management services."We are growing because our company is unique with its services," Samuel says.The company has grown from a one-person operation to five people and an independent contractor who came on board over the last year to help Global eServices & Solutions handle its increased workload. It also plans to hire two more employees over the next year.Source: Ashraf Samuel, vice president of Global eServices & Solutions Writer: Jon Zemke

Metro Detroit auto firms and manufacturers to invest $55.6M, hire 605 workers
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Arts and Culture
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August 19, 2010

Automotive, manufacturing, and automotive manufacturing were all big winners in the latest round of job-creating tax breaks from the state of Michigan.The Michigan Economic Development Corp doled out $89.4 million in tax breaks to nine companies and two brownfield developments that promise to create up to 1,085 jobs over the next decade. Five Metro Detroit automotive and manufacturing firms received $55.6 million in tax abatements that are expected to create 605 jobs.One of the more prominent projects is a consolidation at Link Engineering that will create jobs in a new Dearborn location. The transportation engineering, testing, and manufacturing firm plans to invest $9.8 million over the next seven years while creating 59 new jobs. It was also looking at a site in Ohio, but chose to stay in Michigan with the help of a $789,787 state tax break and another one under consideration from the city of Dearborn.The 75-year-old family owned business plans to execute this consolidation and expansion by the end of the year. It employs 200 people and a handful of interns and independent contractors."We do a fair amount of work with Ford, so Dearborn is attractive," says Tim Duncan, vice president of global test operations for Link Engineering. "Plus its location. It's close to the airport."Among the other local projects:- Hallite Seals Americas plans to spend $7.4 million to expand its Wixom operations, which will retain 152 jobs and create another 60 over the next five years. The manufacturer of sealing devices received a $475,445 tax break. It was also considering another site in Texas.- KOSTAL Kontakt Systeme, an electric components manufacturing firm, will drop $27.1 million to relocate the existing production of its solar connector systems from Germany to Rochester Hills. It's a move that will create 247 new jobs, thanks to a $3.9 million state tax abatement over seven years.- Commercial-vehicle supplier Metalsa Structural Products received a $1.9 million tax break over seven years in exchange for a $1.9 million investment in Novi. The company will relocate its global commercial and research and development operations, creating 65 new jobs here. - Wolverine Assemblies will invest $8.4 million to set up a new office in Wixom that will perform value-added assemblies, sub-assemblies, testing, sequencing, and warehousing for various products. The investment, which has garnered a $785,166 state tax credit, is expected to create 174 jobs over five years. Source: Michigan Economic Development Corp and Tim Duncan, vice president of global test operations for Link EngineeringWriter: Jon Zemke

IT That Works rebrands, plans 5 new hires
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Arts and Culture
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August 12, 2010

BTR Associates has a new lease on life, thanks to a new name - IT That Works.The Bingham Farms-based firm is rebranding itself and refocusing its product offerings in an effort to expedite its recent growth. The 7-year-old company has grown 15 percent over the last year and expanded its offices in Metro Detroit and Nashville to 10 and five people, respectively, including one recent local hire."We expect to hire at least five people over the next year," says Bob Breitman, president and CEO of IT That Works.IT That Works is focusing on IT services for small-to-medium-size businesses, such as network management and data backup and recovery. "One of the things we are pushing is a better data backup plan that can protect your services."Source: Bob Breitman, president and CEO of IT That WorksWriter: Jon Zemke

Detroit Electric car brand scores microloan
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Community Development
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August 12, 2010

The future of the automobile got a little boost earlier this week when Detroit Electric received financing from the Michigan Microloan Fund Program.The Brighton-based start-up joined Ypsilanti's Ergun Technology and Ann Arbor-based Local Orbit in splitting $140,000 in microloans. The microloans help new economy-based start-ups push forward product development and commercialization.Detroit Electric is the oldest electric car brand in the U.S., getting its start in the early 20th Century. It went dormant until a few years ago, when it was revived by a Chinese firm to make electric cars. This microloan will help Detroit Electric's efforts to establish and grow its current two-man office into a world headquarters and technical center that employs hundreds of people. "We're trying to get started here in the U.S.," says Don Graunstadt, CEO of Detroit Electric's North American operations. "Cash is really important, but more important is the endorsement. The government did three months worth of due diligence on us." Own is the principal product for Ergun Technology. Own connects cash registers to the Internet, providing store owners real-time remote access to their transactions. The 4-person firm plans to use its loans to complete Beta testing of its product and begin marketing it to coffee shops across the state.Local Orbit is creating a web platform that simplifies the process of buying food directly from local farmers for restaurants, institutions, and consumers.The state-created Michigan Microloan Fund Program provides seed capital to growing new economy start-ups. The $1.4 million program, which is run by Ann Arbor SPARK, became instantly popular because of the lack of financing available in the wake of the financial crisis.Source: Ann Arbor SPARK and Don Graunstadt, CEO of Detroit Electric's North American OperationsWriter: Jon Zemke

Netarx seeks Midwest expansion; 40 open positions
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Arts and Culture
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August 12, 2010

Thirteen years ago, a couple of techies gave rise to something big – Netarx.The Auburn Hills company now employs 211 people, a few independent contractors, and five interns. It has 40 open positions today, six of which became available this week because the company won another project. It's come a long way from when inspiration first hit Duane Tursi and Sandy Kronenburg."The inspiration was a voracious love of technology and figuring out ways how businesses can leverage it," says Tursi, principal of Netarx.Netarx came of age when the Internet began to go main stream and now focuses on providing IT, data center, and other technology integration services. It acquired Analysts International last year to broaden its product offerings, a move that helped save dozens of jobs in Metro Detroit."We kept about 100 jobs in Michigan," Tursi says. "The other suitors were not headquartered in Michigan."The firm is seeking expansion to the west side of the state and into markets in Indiana and Ohio. It's also planning on capitalizing on the potential of cloud computing, an emerging technology in which Netarx has been investing and developing a customer base over the last two years.Source: Duane Tursi, co-founder and principal of NetarxWriter: Jon Zemke

Lawrence Tech expands product development program, open to local companies
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Arts and Culture
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August 12, 2010

Lawrence Technological University's new program, Industry-Sponsored Projects Lab, is a bit of a double-edge sword when it comes to benefits.The lab promises to let local companies utilize the engineering expertise of the university's students to develop, investigate, or test new products. It also pairs Lawrence Tech talent with potential jobs."The students are supposed to do a senior project," says Pavan Muzumdar, engineering entrepreneur in residence at Lawrence Tech. "If we make this an opportunity for local companies then it's a win-win."The lab assigns a team of 3-5 engineering students to do research that can positively impact a company's bottom line. Over the course of a semester, the team works with a faculty mentor on product development for a company. Two firms have already tried out this system and Lawrence Tech wants to broaden its reach this fall."This will have internship elements in it but it will be more in the context of a course," Muzumdar says.Source: Pavan Muzumdar, engineering entrepreneur in residence at Lawrence Technological UniversityWriter: Jon Zemke

Wellco’s health tracking software a hit, adds positions
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Arts and Culture
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August 12, 2010

Royal Oak-based Wellco isn't a provider these days as much as it is a fixer when it comes to improving the health of Metro Detroit's workforce. "We have become much less a wellness provider and more of a company that fixes wellness programs," says Scott Foster, president of Wellco. "Wellness has become such a hot topic but companies have no idea whether their programs are effective or not."Wellco has developed software and programs for companies to document and track the health of their employees. The idea is to create a healthier, more productive workforce that ultimately saves significant sums of money in medical costs, both in the short- and long-term.Its newest technology, HealthHammer, helps its customers benchmark, measure, and improve healthy lifestyles. It also gives them the Top 15 health conditions to avoid, such as back pain, diabetes, and depression.Wellco has avoided its own pitfalls and experienced some healthy growth in the last two years, adding two hires to round its staff out to a dozen people and three independent contractors. It currently has one open position for a wellness specialist and expects to create another five jobs over the next six months.Source: Scott Foster, president of WellcoWriter: Jon Zemke

Irma Elder turns hardship into entrepreneurship; 400 employees nationwide
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Arts and Culture
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August 12, 2010

Irma Elder experienced her moment of truth 26 years ago when her husband died. The young woman was left with her three children and the auto dealership she and her husband had been building since the late 1960s. She could have sold it and moved on. She chose to take the reins herself and become a player in the car sales business. It's a decision that ensured the economic future of her growing family and the community. Ford signed off on her takeover of the dealership. She bought another dealership, and then another. Today the Troy resident's business, Elder Automotive Group, employs 400 people across the U.S."There were many nights when I thought I was crazy," Elder says. "I thought I would wake up and quit the next day. But the sun came up and everything turned out fine."That was far from a sure thing for Elder. She was born in Mexico to Syrian immigrants before eventually moving to the U.S. and taking citizenship. English became her second language and building successful businesses became her career. The recent economic downturn caught her by surprise, but she has faith that it's nothing her country resiliency and penchant for hard work can overcome yet again. Who can argue with a philosophy that took a widowed immigrant and her family so far?"I never thought of myself as having done something extraordinary," Elder says. "I have always thought I survived."Source: Irma Elder, CEO of Elder Automotive GroupWriter: Jon Zemke

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