36 minute read
Inside Track
Miner’s passion for construction in his DNA
Work on family projects as a youngster eventually landed him at Rockford Construction as director of pre-construction.
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When pre-med classes didn’t work out, Michael Miner’s natural curiosity found a match in construction management. Courtesy Rockford Construction
Danielle Nelson
dnelson@grbj.com
Construction was a pastime in Michael Miner’s family.
As a child, he worked alongside his uncles and cousins who were “handymen” on family construction projects. Whether it was swinging hammers or using screw guns, Miner was involved in building such things as decks, gazebos and swimming pools.
Miner also took on construction projects after he graduated high school to pay for college. He helped to build modular housing and trailer houses that sat on foundations.
Decades later, he turned his childhood experiences into a professional career in the construction industry.
Miner is the director of pre-construction at Rockford Construction, where he focuses on quantity take-offs, trade contractor solicitation, bid review and estimating.
Despite growing up working on construction projects, Miner’s path into the construction industry was not clear cut.
He wanted to pursue a career as an orthodontist after enduring an unpleasant dental experience during his adolescent years. He began wearing braces just before his 13th birthday and they were set to be removed a year or so later, but they weren’t removed until his senior year of high school.
Miner relocated after he got his braces and had to change orthodontists. Although his new orthodontist did not remove the brackets he had on, his teeth were not straightening. Some of the people who got their braces at the same time Miner got his were getting theirs removed before he was.
Once his braces were removed years later, Miner was motivated to help others have a better dental experience. His plans included a dental office with TVs, charts that change colors documenting how long people have been there, and providing efficient scheduling times and visits at his office.
He went on to Michigan State University and began taking premed classes — including the sciences, which he said he loved — before losing interest after two years.
“I used to love science,” he said. “It was so fun. I liked the sciences. I was kind of nerdy that way (but) I found it interesting. I retained things from it naturally and then over time it kind of turned. After two years I was like, ‘Man, I don’t like science at all. This is not the fun part.’ I wanted to get to the fun part. I kept on waiting for the fun part, but we were just not getting there.”
During his sophomore year, Miner took a construction class
to see if he’d like it and he never looked back. In his junior year, he switched his major to construction management.
“Everything they gave me I was eating up,” he said. “I loved it. I liked learning about it. I liked learning about the different solutions you could find with things. I think because of doing the projects I was always curious as to, ‘Why do we use that size board for that instead of this? Is it because of how it holds things? Is it because of the price? Is it a combination of both?’ I was always curious as to why we ended up on the solutions we did for a lot of things.”
Miner recalled a time when he and his family were taking a metal roof off his uncle’s home, which was an original farmhouse, but he didn’t understand why they were replacing it with asphalt.
“‘This metal roof has been here. It was an original farmhouse and you guys have been here for 40-something years and the house has been here for probably 60 years that you know of, why are you taking off the metal roof and not putting a metal roof back on?’ My uncle kidded; he said, ‘Because it is so dang hard to take off and it is loud. I am sick of it being loud. Your aunt is going to kill me, but I don’t like hearing the rain hitting against it. It is super loud, and it wakes me up, but she loves it because it puts her to sleep. It is a big old farmhouse, and we can do all the asphalt at a reasonable price because the price of metal is crazy right now.’ That is how it started. It was little things like user preference and the economy of scale.”
It was that renewed curiosity in construction that allowed Miner to graduate from MSU with a degree in construction management.
His first job out of college was at Graycor, which is headquartered in Chicago. He managed the construction process at the company, which had industrial and commercial divisions. He was responsible for the scheduling, budget, pictures and requests for information.
Miner helped to manage different projects for different companies across the country including Ohio-based American Electric Power (AEP.) His team of Graycor workers and local Ohio skilled workers worked on an environmental project at AEP, where they took the company’s exhaust system and tied it directly to its cooling tower from its power plant and removed components that harmed the environment.
After 10 years at Graycor, Miner began working at a small residential construction company that was starting a commercial division. He later moved on to Holland-based Lakewood Construction where he was the company’s chief estimator.
Miner said as he moved on to different construction companies, he gained experience in estimation naturally because clients sometimes add different components to their original plan amid the construction of the building, including wanting an extra floor built or making design changes to a lobby.
But when he got to Lakewood, he learned a lot more.
“That is where I really got to understand the components more and the price for each of them, particularly in West Michigan,” he said. “I figured out how much glass cost. How much aluminum walls on the exterior of a building cost. How much all the bricks for the buildings that you see downtown cost. I started figuring out all those things, all those widgets I call them, and how much each of those cost and (it) really expanded my forte there.”
Amid his learning, Miner said he always had a yearning to lead a team, and Rockford Construction offered that opportunity. He joined the company two years ago. As the director of pre-construction, he leads a team that creates construction schedules, determines the cost of projects, and adds value engineering, which is finding a more economical way to complete a project while maintaining high-quality work.
Michael Miner
MICHAEL MINER
Company: Rockford Construction Position: Director of pre-construction Age: 36 Hometown: Sturgis Residence: Hudsonville Family: Wife, Danielle; daughter, Emma; son, Flynn Community/business involvement: Member of Grand Rapids Chamber and ABC Young Professionals Biggest career break: “I think my biggest break is being given the opportunity to lead people.”
Program helps companies expand export strategies
ExporTech aids organizations with building strategies for tapping into global markets.
Rachel Watson
rwatson@grbj.com
Michigan’s manufacturing and technology executives have a little time left to apply for a virtual, 13-week program to help accelerate their export strategies in 2022.
An intensive export growth program designed to jumpstart global sales strategies, ExporTech was launched nationally in 2007 via a partnership between two U.S. Department of Commerce bureaus: The National Institute of Standards and Technology (NIST) and the U.S. Commercial Service (USCS), which is part of the International Trade Administration.
ExporTech Michigan, launched in 2010, is organized by the U.S. Commercial Service-Michigan and the Michigan Economic Development Corporation (MEDC), with support from the East and West Michigan District Export Councils, EXIM Bank, the Small Business Administration, the Michigan Small Business Development Center and the Michigan Department of Agriculture and Rural Development.
Over 1,200 companies have successfully completed the ExporTech program nationwide. Since ExporTech launched in Michigan, the USCS and MEDC have o ered 12 programs serving 61 companies throughout the state.
Through ExporTech, business school students at Michigan universities gain real-life experience helping companies formulate their export strategies, and a pipeline of graduates with international business research experience is made available to the companies, as well. University partners include Michigan State University, Lawrence Technological University, Northern Michigan University, Saginaw Valley State University and Grand Valley State University.
Grand Valley is serving as the university partner for the winter 2022 cohort, and the U.S. Commercial Service-Grand Rapids o ce, along with the MEDC, are the co-organizers.
The program — which went virtual in 2021 and will continue online in 2022 — will consist of six morning workshops and individualized coaching sessions from Jan. 20 through April 14, culminating in a presentation of each company’s strategic export plan during the fi nal session. Each company will be assigned a pair of coaches to navigate the strategic export sales process, and companies will be matched with a team of GVSU business students to assist with their international market research.
The program covers topics such as legal aspects of export compliance and working with international distributors, logistics concerns, tari s and freight costs, and navigating free trade agreements.
Kendra Kuo, director of the U.S. Commercial Service-Grand Rapids o ce, said the program exists for a simple reason.
“Oftentimes, companies in Michigan or anywhere else are pretty good at doing domestic business, and then they’re approached by international buyers or distributors to help represent them overseas. Sometimes, those sales end up working out well, but other times, they’re missing out on bigger opportunities if they’re not strategic,” she said. “We’re trying to help them be more strategic as they approach international sales, identify which countries hold the most promise for them and go after those markets fi rst.”
On Dec. 17, Robin Daniels, U.S. Sen. Gary Peters’ regional representative, presented certifi cates of special senatorial recognition to the eight graduating executives from the fall 2021 cohort, who celebrated the completion of their program after having presented their strategic export growth plans to a panel of experts from the Michigan District Export Councils for feedback.
“Feedback and expertise from the review panel was invaluable, as it helped us to anticipate and address topics in advance of entering new markets,” said Michael Edison, CEO of Ann Arbor-based Adaptive Energy.
“Participating in ExporTech has dramatically accelerated our global market entry — largely because we’ve gotten an inside perspective from companies that have been in our shoes. We’re now armed with a highly actionable strategy to enter Canada, India, Israel, Norway and other global markets. The bonus is that we now know the business risks, as well as the specifi c channels to target.”
The fall 2021 ExporTech Michigan cohort graduates also included AtomTech in Clarkston, Bennett Pump Co. in Norton Shores, ICR Services in Warren, iHemp Manufacturing in Fenton, SenShipping in Romulus, Thunder Technologies in Rochester Hills and United Precision Products Company in
Kuo From left are coaches, volunteers and participants from a 2019 ExporTech cohort: Don Carbone, former president of Managed Programs; Greg Kangas, Great Lakes Sound and Vibration (GLSV); Steve Tarnowski, GLSV; David Bekkala, REL Inc.; Steve Mattson, GLSV; Mitch Fedie, Pettibone; Clint Berry, Race Ramps; Joe Esbrook, Hiawatha Log Homes; Jennifer Moll, U.S. Commercial Service; Eve Lerman, U.S. Commercial Service; Rich Digue, RnD Engineering; Bob Welker, Argonics; Chris Bosio, Michigan Economic Development Corporation (MEDC); and Natalie Chmiko, MEDC. Courtesy MEDC
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Stryker rolls out new time-saving surgical equipment
System advances ease of use and accuracy in the operating room for podiatrists.
Danielle Nelson
dnelson@grbj.com
Stryker is making foot and ankle doctors’ jobs easier.
The medical technology company launched its Prophecy Infi nity Resect-Through Guides for use in total ankle replacement surgeries.
The Prophecy Infi nity Resect-Through Guides is a new system that provides surgeons with fewer surgical steps: one guide is used for drilling and cutting, and metal guides are used to maintain cutting stability. There are optional holes to couple the alignment for the talus or the ankle bone; cover pegs; and improved fl uoroscopic visualization of the coronal alignment, positioning and implant size in one fl uoro shot, according to Stryker.
“The Prophecy Infi nity Resect-Through Guides can save steps in the OR (operating room) and allow for a fi rmer attachment of the Prophecy guides to the bone,” said Scott Ellis, MD, foot and ankle surgeon and associate attending at Hospital for Special Surgery in New York. “With Stryker’s Resect-Through Guides, surgeons can enter the OR feeling confi dent that they are more likely to successfully follow their preoperative total ankle plan and achieve a wellaligned implant.”
The Prophecy Infi nity Resect-Through Guides was designed to match a patient’s anatomy and fi t securely into position at the time of surgery. It provides fewer steps and reduces time-consuming interoperative steps such as determining alignment, choosing implant size and reliance on fl uoroscopic guidance. keting and medical education for Stryker’s foot and ankle business. “After 35,000 cases planned over the last nine years, the latest o ering in the Prophecy System continues to push innovation that will advance ease of use and accuracy in the operating room.”
A nationwide inpatient sample database from 2007-13 revealed that 50,156 patients older than 50 underwent either a total ankle replacement surgery or tibiotalar arthrodesis (ankle fusion surgery) because of ankle arthritis.
Of the total number of patients, 15,060 patients underwent total ankle replacement surgery and 35,096 underwent tibiotalar arthrodesis.
Total ankle replacement surgery has been increasing over the past decade, particularly with patients with post-traumatic arthritis and osteoarthritis, according to the Journal of the American Academy of Orthopedic Surgeons.
The new equipment cuts out steps for surgeons who are performing ankle-replacement procedures. Courtesy Stryker
Survey shows shift in customers’ banking habits
Consumers’ and businesses’ adoption of digital banking tools is expected to be permanent.
Rachel Watson
rwatson@grbj.com
Nearly all consumers now do some or all of their banking digitally, while interaction with bankers is reserved for advice and complex transactions — a trend expected to accelerate in 2022.
New research released this month by Citizens confirmed the trend that emerged in 2020 as the COVID-19 pandemic unfolded. While the data shows a sweeping change in banking habits, the numbers also ratify the enduring importance of human interaction in more complex matters, Citizens said.
According to Citizens’ second annual Banking Experience Survey, published Dec. 9, 90% of consumers and 86% of businesses use digital banking channels, up from 85% and 71%, respectively, in July 2020.
The nationwide survey of consumers and business leaders found not only that widespread digital adoption is here to stay, with at least 70% of consumers and business leaders saying it is permanent, but that customers are increasingly comfortable in sharing their personal data with their banks.
Additionally, the survey also found human interaction — either in person or via virtual channels — remains essential when it comes to executing more complex transactions. Two-thirds of consumers and businesses said they still prefer to tap a real person for financial advice.
“(The 2021) survey shows that while the convenience of digital banking continues to attract consumers and businesses, there remains a need to provide a personal touch for advice and more complex transactions,” said Beth Johnson, chief experience officer at Citizens. “These results highlight the ongoing need for banks to provide a seamless experience across all of their channels, even as digital channels evolve rapidly.”
Evolving digital offerings
While personal interaction is still important in banking relationships, digital offerings increasingly are key in terms of initial consideration, the survey found. Most consumers now choose their banking partner based on mobile and online banking capabilities, with 40% of consumers reporting it was the most important factor, and only 27% citing the convenience of physical branch locations as the most important factor.
The 2021 survey also showed a confidence in new banking channels, especially among business leaders. Seventy-eight percent of business leaders said their experiences during the past year made them much more comfortable with doing their company’s banking online. Eighty-six percent of business leaders said they feel confident using video conferencing tools to speak with their banker or banking team, and 70% said they feel confident performing banking activities via a chat function with a live banker on the other end.
Additionally, the survey results showed an increased expectation among consumers that banks will use artificial intelligence (AI) and big data to anticipate their financial needs moving forward. Fifty-three percent of consumers said they believe technological advances will allow banks to leverage data and AI to help better anticipate their future needs, up from 49% in 2020.
Banks as a partner
Consumers and business leaders increasingly view their banks as partners, the survey found, showing banks’ ability to provide a seamless omnichannel experience while continuing to offer sophisticated advice will enable them to build on and deepen relationships with customers.
More than 80% of business leaders said their bank supported them through the COVID-19 crisis, and nearly as many viewed their bankers as strategic and financial partners.
Nearly seven in 10 consumers said they trust their bank to do the right thing by them when making financial decisions, while 60% said they are comfortable sharing their financial goals with their bank.
Sixty-five percent of consumers and 82% of businesses said they are at least somewhat comfortable sharing information with banks, as long as it leads to more
If trends that took hold during the pandemic stay in place, fewer customers will require in-person assistance and instead will learn to do more of their banking digitally. Courtesy iStock
tailored solutions and a better experience. Those percentages increased year over year from 60% and 71%, respectively.
“Over the past 18 months, we’ve seen how customers depend on their banks to be there for them and provide strategic advice,” Johnson said. “Listening to our customers’ needs in order to provide innovative solutions, services and experiences with personalized insights is key as we continue to move forward together.”
Methodology
The Citizens Banking Experience Survey was conducted by Mintel/Comperemedia and polled 1,028 consumers and 260 business leaders between Oct. 22 and Nov. 4 using an email invitation and an online survey.
Results of any sample are subject to sampling variation. The magnitude of the variation is measurable and is affected by the number of interviews and the level of the percentages expressing the results. For the interviews conducted in the consumer sample of this study, the chances are 95 in 100 that a survey result does not vary, plus or minus, by more than 3 percentage points from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample, Citizens said.
Employer Associations of America publishes National Business Trends Survey.
Rachel Watson
rwatson@grbj.com
In the recently released 2022 National Business Trends Survey from the Employer Associations of America (EAA), business executives indicate a fair amount of caution mixed with optimism for the 2022 outlook.
The survey results, published last month, showed 31% of executives believe the economy will improve and 41% expect the overall outlook for the 2022 economy to remain the same.
This annual survey shares information on what executives are doing to address business challenges. Survey responses also reflected the continuing impact of COVID-19 on business trends.
“Business leaders have had another year of difficult decisions and tough choices,” said Gayle Gilham, EAA board chair. “However, the trends we are seeing show just how strong and resolute executives are today.”
When asked how concerned respondents are regarding COVID-19 and its impact on business continuity, e.g., the supply chain, financial implications and temporary shutdowns, 65% indicated they are “extremely to moderately concerned,” an increase from last year’s 52%.
In 2021, hiring and recruiting became increasingly difficult as employees left for more pay, flexible work arrangements or new challenges. When asked their greatest business challenges for 2022, executives ranked talent acquisition, talent retention and cost of materials as their top three.
According to the survey, 50% of organizations were hiring in 2021 “slightly to significantly more” than they originally planned, compared to 20% reporting that in 2020. Most executives reported some to all of their hiring was due to voluntary turnover (90%), and 70% reported their hiring was due to some or all newly created jobs.
With talent being such a critical factor, executives were asked what they thought were the top five most important factors for prospective employees, and the answers included: 1. Competitive pay, 84% 2. Good work/life balance, 74% 3. Flexibility in work hours, 57% 4. Vacation/paid time off, 38% 5. Competitive/robust health benefits, 38%
Given the national concern over COVID-19 and employee safety, the survey also asked how organizations are working to minimize risk and ensure compliance with federal, state and local laws. The top two responses were providing face masks for employees in the workplace (56%) and encouraging, not requiring, employees to get vaccinated (52%).
The survey also asked executives to share the top measures they have been or are planning to continue to implement in 2022 to strengthen business results. The top five responses: 1. Invest in technology, 49%, as compared to 38% in 2021 2. Invest in equipment, 46% compared to 37% in 2021 3. Increase recruiting emphasis, 44%, vs. 40% in 2021 4. Offer hybrid work for positions that have not been hybrid in the past, 30%, which was the same as in 2021 5. Increase flexible work arrangements, 27%, down from 28% in 2021
In addition, the EAA 2022 National Business Trends Survey broke results out on the state level. Michigan respondents (74%) said their projected business outlook is for “slightly or significantly increased” sales/revenue or budget for 2022. Sixty-six percent of Michigan respondents were “moderately or somewhat concerned” with COVID-19 and its impact on human resources,
Gayle Gilham
e.g., policy, remote work and absences.
“The Employers’ Association continues to provide meaningful services and solutions to local businesses during this recovery period through HR Helpline support, compensation alignment/ development, employee engagement surveys, roundtables (HR, safety and DEI), as well as coaching and training to develop skills that improve performance and organizational efficiency,” said Jason Reep, president of The Employers’ Association in Grand Rapids. “We believe this, and our other survey data, will continue to provide guidance as organizations refine their strategies in this and in future challenges.”
The EAA is a nonprofit national association that provides this annual survey to business executives, offering insights and trends for business outlooks, business investment plans, staffing levels, hiring plans, job creation, pay strategies and business challenges.
A copy of the full report is available by contacting Maggie McPhee or Marla Holzapfel, mmcphee@ teagr.org or mholzapfel@teagr.org, at The Employers’ Association, or by calling (616) 698-1167.
Phoenix Group urges use of innovative staffing strategies
In historically tight labor market, getting creative with finding people is the name of the game.
Rachel Watson
rwatson@grbj.com
A local management consulting firm has several ideas for businesses running up against talent hurdles in 2022.
Anne Leighty, co-founder and partner of greater Grand Rapids-based The Phoenix Group, recently spoke to the Business Journal about how companies can ease the talent crunch heading into 2022.
Founded in 2017 by Leighty and her business partner, Bryan Blackburn, The Phoenix Group is a management consulting firm specializing in accounting, finance and technology solutions for clients across many industries, including manufacturing and nonprofits.
Leighty said like all companies in the past couple of years, The Phoenix Group and its clients have had to get creative with finding talent to fill the gaps. She said if approached with positivity and a can-do spirit, it’s not an insurmountable challenge.
“You’re not alone. Everybody’s going through these struggles. Everybody is getting creative. You just have to think a little bit outside the box and be willing to make some changes internally,” she said.
“Some of the tips (we are sharing) require reflecting on what you’re currently doing and maybe changing it a little bit, and we have to be open to that. If there’s anything we’ve learned from the past couple years, it’s we need to be a little bit more fluid, so I think that goes for when you’re looking for talent, as well.”
Four main strategies
The Phoenix Group said employers may find themselves wondering several times a day, “Where have all the people gone?” The firm found, through informally asking clients, a few insights. Some parents have found the shifts back and forth between virtual and in-person learning during the pandemic “too much to cope with,” and one parent may have elected to stay home. Others have started their own business, even if it’s something as small as selling goods on eBay. Some have shifted to working in the gig economy, driving for Uber, delivering groceries and food from restaurants, etc., and still others are collecting unemployment.
To find talent at a time when it’s so elusive, The Phoenix Group recommends employers:
Embrace talent they have
Leighty said employers should talk to their staff and ask them questions, such as why they are staying, what they like about their job, and would they recommend it to others.
“It’s great that you want to hire new people, but it’s equally important that you put enough effort into keeping the ones that you have,” Leighty said. “There’s something about the company that keeps them there. It’s really important that you tap into that and find out what that is, because maybe you are thinking it’s one thing, and so when you’re doing postings or talking to other people, you’re promoting one aspect of the business, when maybe you’ll find out that it’s something else.
“It’s rare when you talk to people about why they leave jobs that they leave because of salary. Most people aren’t staying because of that.”
After interviewing employees, the company could then create a marketing video where those existing workers share what they like about the company for advertising purposes.
Another idea is to ask current employees to refer others.
“Good people always know other good people, so capitalize on that,” Leighty said.
Reach out to peers
Leighty said she recently called some out-of-state clients that weren’t struggling with finding talent for their shop floors, and they said they had found an alternative labor pool in returning citizens who had committed nonviolent crimes, as well as individuals with disabilities.
“That doesn’t work for everybody, but it will work for some,” she said.
Networking also is a big part of this strategy. Leighty said people in West Michigan love to help their peers, so attending luncheons and other business functions can be a great way to get new ideas.
Use a temp agency or pool
“An organization in Lansing that was always well-known for developing their own labor pools was Auto-Owners (Insurance), because they’ve spent many years successfully having their own temporary labor pools. They would have employees that might retire or maybe working mothers that are available for certain times, and they created this giant temporary pool and they never had to use outside agencies because they had their own people that were signed up to do that,” Leighty said.
Recently, The Phoenix Group crafted job ads targeting stay-athome moms to work as part-time consultants during the school day.
“When we just put out the ad saying we were looking for parttime people, we didn’t get hardly anyone, but when we specifically went out there saying, ‘If you are a stay-at-home mom who has these skills that we’re looking for, we’re willing to work around your children’s schedules, so give us a call.’ And we just got great people,” Leighty said. “… Getting creative with who you’re targeting really makes a difference.”
Outsource
“There are some pieces of your business, usually marketing, IT and accounting, that are easy to outsource,” Leighty said. “If you just take a little bit of your processes, maybe revisit those and tweak them a little bit and do a little reorganizing, you can outsource some of the areas that you may be struggling with.”
The Phoenix Group offers accounting, consulting, software and outsourced CIO and CFO services for companies that, for example, may have someone on staff handling the day-to-day of information technology or finance, but need part-time help with higher-level strategy and vision setting.
“If they revisit their processes, I’m sure people will uncover opportunities for outsourcing. They can decide if they want to keep the transactional work in-house and outsource the strategic piece … or vice versa,” Leighty said.
More information on The Phoenix Group is available at phoenixgrpllc.com.
Steelcase, Inc. has an opening for a Sr. Quality Engineer in Kentwood, MI responsible for designing, installing and evaluating quality assurance systems, procedures and statistical techniques.
Bachelor’s degree (or foreign equivalent) in Mechanical Engineering or a related field and Four (4) years of experience in job offered or related required.
To apply, please go to https://careers.steelcase.com/ careers/FolderDetail/ Sr-Quality-Engineer/4423. No phone calls, please. MEDC CEO applauds SOAR
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proves when we come to the table in good faith and put Michiganders first, we are capable of extraordinary progress. I will continue working with anyone to deliver meaningful change on the kitchen-table priorities that make a difference in people’s lives.”
Quentin L. Messer Jr., CEO of the Michigan Economic Development Corporation (MEDC), called the legislation “an important beginning.”
“We appreciate the incredible diligence, hard work and collaborative approach to position Michigan for large-scale investments that accelerate growth in high-paying jobs, retain large customers for our small businesses and remain at the center of technological change for decades to come,” he said.
“Michigan’s globally recognized talent base, long-standing heritage in manufacturing, innovation and affordable cost of living, combined with a Pure Michigan quality of place, already put Michigan in a strong position to win. These bills … provide competitive programs that are responding to the market and invest in business retention and attraction to complement Michigan’s already undeniable strengths as a state.”
Although Messer said he cannot share specific details due to nondisclosure agreements, he said the MEDC has several transformational projects in its pipeline that would invest billions of dollars into Michigan, create tens of thousands of high-paying jobs for Michiganders and continue the state’s strong economic growth.
“We feel really good about the work that is happening in the Grand Rapids region,” Messer said. “In West Michigan, there are three really exceptional regional economic development organizations — Cornerstone Alliance, Lakeshore Advantage and The Right Place — and they have ag-
gressive teams that are doing really exciting work.”
The programs funded by SOAR are expected to support business retention and attraction efforts across regions through improved site readiness efforts and create a new “home court” advantage for automotive, electric vehicle and advanced manufacturing growth in the state.
Messer said he believes the SOAR legislation “changes the narrative that Michigan is comfortable or complacent and not willing to be aggressive to retain its historic advantage in the mobility and other advanced manufacturing sectors.”
He added it also is designed to have broader impact than just mobility and advanced manufacturing.
“The framework of this legislation allows us to be competitive in the life sciences, which is of tremendous import in West Michigan; it allows us to retain our tremendous design and office furniture (sectors), because it’s not industry specific,” he said. “It basically talks about critical industries, those industries that have transformative impact from a job creation or a capital investment (standpoint), and so that’s the real beauty of this that it really allows us to be flexible and nimble, given the evolution of technology.”
Messer also said it’s important to note that the legislation applies to all of Michigan — not just east or west or the Lower Peninsula, but to the whole state — and to small businesses as well as big ones.
He added more work will need to be done in the Legislature in January to continue building on this first step.
Quentin L. Messer Jr.
Experts analyze the supply chain ‘mess’
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automotive industry.
The panel was designed to share strategies for lower middle market companies to survive and thrive in the current environment. Key topics included: •The causes of the ongoing supply chain issues and what the long-term impact and repercussions of the crisis might be. •Actions to take for companies currently sourcing in Asia. •Who is benefiting from the current situation and what are they doing to keep things from returning to normal? •The roles sourcing, logistics and technology will play in solving the supply chain crisis.
The Business Journal previously reported on root causes of the supply chain crisis that a Commerce Bank panel identified, and this group added a few more factors exacerbating the problem.
Feniger cited problems including worker shortages, rising wages and electrical grid nightmares in China; the deterioration of U.S.-China relations and continued high tariffs; the price of raw materials, particularly of plastics, stemming from the spike in oil prices; the Chinese government’s “radical” approach to COVID-19 lockdowns; freight forwarding problems out of China due to U.S. ports being backed up; the pulling forward of production timetables as U.S. retailers see a spike in demand; and the fact China’s ability to deal with problems quickly is causing major brands to pull out of other Asian countries and shift production back to China, overloading its capacity.
Hawver identified the pandemic-induced consumer buying pattern changes, as well as the rapid technology shift toward electronics, both of which underpin the shortage economy, as key reasons for the supply chain “mess” the world is facing.
Gordon said the U.S.’s inventory-to-sales ratio is at an alltime low, because with the rise of containerization and the U.S. increasing overseas production and imports on a global scale over the past 50 years, the country has become more and more dependent on the global network, hampering its ability to recover when the supply chain is threatened.
Additionally, he said the U.S. has been held back by the powerful International Longshore and Warehouse Union, which, through collective bargaining, has prevented a shift to further automation at the ports — an advantage many countries now have — in addition to blocking increases in the number of hours they can work to clear out the port backlogs.
Gordon also criticized public policy decisions such as the $5 trillion worth of federal stimulus, which fueled a spike in demand for consumer goods; and the Biden administration’s failure to force the Los Angeles/Long Beach ports to stay open or divert traffic to other ports — or bring in the National Guard to help clear blockages — as well as its failure so far to act on other ideas, such as subsidies to trucking companies to hire more drivers and adding more warehouse space at the ports in which to put containers.
When asked to share what actions they are taking in response to supply chain constraints, the panelists shared numerous ideas.
Hawver said EBW Electronics is requesting price increases, negotiating new terms with suppliers, increasing lead times and inventory, and redesigning product with a design-for-availability, rather than design-for-assembly, philosophy.
“We’ve actually had to re-engineer product based on what’s available in the market,” he said. “So, you go out and scour for semiconductors or capacitors or the like, and we’re having to compromise the design integrity by simply using what’s available.”
He said if any lessons can be taken from the current crisis, it’s that, in hindsight, automakers in North America should have developed deeper and more positive relationships with semiconductor manufacturers instead of being overconfident in their leverage during the former buyer’s market. Semiconductors are used extensively in electronic circuits, or chips, and the chip shortage has hamstrung global auto production since 2020.
“I’ve been on conference calls with (original equipment manufacturers) and Toyota semiconductor manufacturing companies, and it’s very clear that the North American Detroit Three were late to the show compared to the European and Asian OEMs, who invested themselves much earlier in relationships with this very deep and complex semiconductor supply chain,” Hawver said.
He also said companies that can increase their flexibility in inventory management after pivoting too far toward the global just-in-time/lean manufacturing model popularized by Toyota in the ’90s will be able to weather the continued supply chain crisis.
Gordon said private investment dollars are going to companies that have managed to meet the moment and step into the world of e-commerce fulfillment, becoming “unicorns” in the process — the term for a private startup valued at over $1 billion. His investment companies Cambridge Capital and BGSA have poured funding into companies that innovate in e-commerce fulfillment; last-mile logistics software; reverse logistics, or software that manages e-commerce returns; and tracking, or e-commerce visibility software.
One way companies have been able to improve their competitiveness is through vertical integration of their logistics and supply chain through mergers and acquisitions, Gordon said. He pointed to four recent deals that illustrate the trend: 1) The transportation company Ryder recently acquired Whiplash, an e-commerce fulfillment company with a national network; 2) the Port of Singapore Authority acquired the Philadelphia-based freight forwarder BDP International; 3) Uber Freight acquired contractual transportation management company Transplace; and 4) the retailer American Eagle bought Quiet Logistics.
“The logistics and supply chain world is a fantastic opportunity for investment, whether software services or other productivity enhancements,” Gordon said.
Feniger said his team has been able to achieve 99% on-time deliveries for its American customers by having boots on the ground in Asia, where employees are demanding priority, during a time when American manufacturers have not been able to visit China in person for nearly two years due to the pandemic.
“Every week, I’ve got people in the factories saying, ‘Show me your raw materials, show me how many workers you’ve got, show me that you’ve organized the packing and the packaging that’s necessary in order to achieve the on-time, in-full delivery,’” he said.
To help clients achieve better success, Feniger tells them to “Go to B.E.D.”
“B.E.D. stands for ‘become a better customer,’ ‘eliminate the middleman’ and ‘diversify for resilience,’” he said.
On the first point, he said with it now being a seller’s market in the supply chain, “You’ve got to change your attitude, and you’ve got to actually consider how to woo the best vendor to come on board and supply you, because they can pick and choose.”
On eliminating the go-betweens, he said customers should work on the assumption that every link in the supply chain costs about 10%. “Don’t use trading companies. Don’t use buying agencies. Go direct to factories,” he said.
On the diversification point, Feniger said clients should “diversify your country of origin and your service providers and make sure you’ve got three quotes on every product, and you should see a dramatic improvement.”
The panelists agreed the supply chain issues are so complex they will continue at least through 2023.
“Nothing is going to get better until 2023, because that’s when more ships will come online,” Feniger said. “So, in the meantime, where there isn’t enough capacity to make what everybody wants to buy, get in there, get in the factories’ face, demand priority and be a better partner.”
The full Blackford and ACG supply chain discussion is available to view at bit.ly/vimeosupplychainwebinar.
Boating emerges as top outdoor activity
Holland-based maker of luxury crafts is on pace for record fiscal year.
Danielle Nelson
dnelson@grbj.com
Many industries have been negatively impacted by the pandemic, but there is at least one industry that has benefited from it.
Outdoor recreation such as hiking, camping, boating and fishing were some of the safest activities to do during the height of the pandemic. One activity stood out from the rest, however.
Boating was one of the most valuable outdoor recreational activities last year. It was the largest conventional activity for the nation as a whole at $30.8 billion in current-dollar value-added and was the largest conventional activity in 39 states, according to the U.S. Bureau of Economic Analysis.
Tom Slikkers, CEO and president of Tiara Yachts, a Holland-based boat manufacturing company, said there were some uncertainties as to how the pandemic would impact his industry.
“As we learned more about COVID and learned about things that we could do safely and things that were less safe, outdoor recreation activities such as hiking, biking, camping, boating, fishing and surfing became the natural go-to for a lot of individuals,” he said. “Boating and camping were probably the two primary big buckets where a lot of people started putting their energy into because it allowed them to isolate and be with their close family or friends and not necessarily have the risk of being with a lot of people.”
The increase in boating activities includes yachting, canoeing, rowing and fishing.
With the increased interest in boating, the demand for boats also has increased. Slikkers said Tiara manufactures low volume, higher luxury boats, traditionally churning out less than 200 vessels per year. This fiscal year Tiara is on track to make around 250 boats, according to Slikkers.
“We are struggling with the demand for boats,” he said. “The demand coupled with the supply chain issues that have been happening now, as a result of the other side of COVID, that combination is not a great combination for a boat manufacturer or anyone in manufacturing. The supply of materials, the challenges of keeping people healthy and employed, and getting your product built is not an easy proposition today. We are working through it. I wished we had a magic wand that we could use, but the material challenges and the people challenges have made it unusually challenging on a daily basis. It is not one item. It is a combination of a multitude of different items that come up in a given day.”
Some of the boats the company manufactures include 39 Coupe, 44 Coupe, 49 Coupe and 53 Coupe. The company launched the 48 LS, the newest model in its portfolio, in February.
To meet the demand, Slikkers said Tiara is hiring new employees and trying to get individuals back into the labor market. It’s also investing in another area.
“We are investing in new automation and robotics in some areas of our facility that might be able to alleviate human interaction and take the human interaction that we do have and move that to an area that is different in our company that we can’t automate,” he said.
