CURTAIN rising on theater’s next act.
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DEC. 13, 2021 VOL. 39, NO. 25
The Business Newspaper of Metro Grand Rapids, Holland, Muskegon & West Michigan
THIS WEEK
GRUMM’S VISION TAKES OFF Founder, CEO and engineer at Oktober Can Seamers helps accommodate surge in to-go alcohol sales. Page 9
Supply chain panel examines root causes Experts discuss logistical challenges facing U.S. commerce from multiple angles. Rachel Watson
rwatson@grbj.com
Heavy load Material costs, delays and lack of facilities create difficult industrial real estate environment. PAGE 3
Root problem Keli Christopher applies engineering experience to help students with STEM. PAGE 4
Commerce Bank this month hosted a deep dive discussion on one of the hottest topics in business today: supply chain woes. The Kansas City, Missouri-based bank, which has a downtown Grand Rapids location, on Dec. 1 hosted a virtual panel discussion entitled, “The State of the Supply Chain: Current & Future Impact” featuring three experts invested in different aspects of the issue: •Christopher S. Tang, distinguished professor at University of California, Los Angeles’ Anderson School of Management, Edward W. Carter chair in business administration, senior associate dean for global initiatives and faculty director of the UCLA Center for Global Management
•Patrick Ottensmeyer, president and CEO of Kansas City Southern, which has railroad holdings in the U.S., Mexico and Panama •Jack Fraker, vice chair and managing director of CBRE Cap-
ital Markets, which monitors industrial real estate availability, including warehouses The panel was moderated by Kevin Barth, director of the commercial line of business for Commerce Bancshares, and Bob
Holmes, chair and CEO of Commerce Bank St. Louis region and Eastern region and leader of Commerce Bancshares’ Capital Markets Group and Equipment Finance Group. CONTINUED ON PAGE 15
Expert: ‘The Big Quit’ may curb mortgage eligibility
HOMEGROWN Fourth class of CNC machinist students receive certificates of completion at the AMP Lab. Page 10
Hall Financial CEO examines impact of ‘The Great Resignation’ on prospective homebuyers.
THE LISTS
Rachel Watson rwatson@grbj.com
The area’s top title companies. Page 6 The area’s top mortgage lenders. Page 7
Products stacked up in ports are putting a strain on the U.S. supply chain. Courtesy of istock
As record numbers of Americans leave their jobs during The Great Resignation, a local mortgage lender advises homeowner hopefuls to consider the impact of changes in their employment on mortgage loan eligibility. David Hall is president and CEO of Hall Financial, a mortgage brokerage founded in Troy
in 2016 with a growing Grand Rapids location at 4949 Plainfield Ave. NE, Suite 100. The brokerage does business primarily in Michigan — with Grand Rapids being one of the hottest markets in the state — as well as in Tennessee, Florida and Virginia. Hall said the growing national trend known as The Great Resignation, or The Big Quit — people leaving the workforce during the COVID-19 pandemic — comes while home prices are being driven up by short supply and high demand for homes, making this one of the trickiest times in history for homebuyers to find a place that meets their needs while also qualifying for a
mortgage loan. While no two scenarios are the same, Hall said certain factors generally have a negative impact on borrower eligibility. “There are gaps in employment that make sense that are not a problem (such as someone going from one job to another); however, just one scenario — and I can point out a Hall lot of them for you — is that for some folks who have decid-
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Inside Track ....... 9 Guest Columns.. 14 Future investment
GVMC begins transportation improvement development.
Change-Ups ..... 20 Calendar .......... 20 Public Record .... 21 Street Talk ...... 22
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ed to walk away from their current position and start their own business (self-employment), it’s very much a big issue in terms of being able to get a mortgage,” he said. “In today’s day and age, with regulators very nervous about clients who are self-employed being able to sustain their business, you need a two-year history self-employed to be able to qualify for a mortgage, so that is a huge issue. When somebody goes from a position where they’re working as a W-2 worker, to somebody who’s starting their own business, they are not eligible to get a mortgage.” CONTINUED ON PAGE 19
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DECEMBER 13, 2021
Curtain rising on theater’s next act The rebirth of Burton Heights’ 4 Star Theatre is underway. Chelsea Carter ccarter@grbj.com A Grand Rapids man with expertise in bringing old buildings back to life has set his sights on a Burton Heights theater that first opened its doors in 1938. Marcus Ringnalda is a construction professional by trade and discovered his aptitude for restoring historic spaces statewide while working for a local construction firm. The former 4 Star Theatre at 1944 South Division Ave. became his new passion project when he saw massive potential for the space that once bustled with activity from the surrounding community. The South Division corridor, a thriving thoroughfare for local businesses in the 1970s, later experienced deRingnalda creased property values and disinvestment in the area, leading to businesses
closing their doors after the installation of U.S. 131, which directed commuters, shoppers and business owners to other localities. Recognizing that the Burton Heights community required investment and community support to unlock its economic potential once again, Ringalda in 2017 purchased the building that had been vacant since 2007. His primary focus of the theater project is to create a neighborhood hub that acts as a driver to encourage economic activity, development and neighborhood engagement, while also attracting visitors from outside the 49507 ZIP code. With a focus on the Burton Heights residents surrounding the theater, Ringnalda has made it his intent to create an affordable and inclusive community arts venue backed by neighborhood businesses and organizations. To set his plans in motion, Ringnalda started “Friends of Four Star,” a 501(c)(3) nonprofit whose mission is to bring the theater, a former nightclub, music venue, youth center, church and, more recently, a vacant space, into a “world class venue with a community lens.” “Because I’ve owned the building for four years, I’ve known a lot of the stakeholders in the neighborhood who
Chelsea Carter
ccarter@grbj.com
sewer — and then these sites must be approved through the municipalities with zoning changes, so that takes time. “When a site search is going on, those companies do not want to go through those variables that are unpredictable such as a township meeting where people don’t want a large industrial building, so they want something that’s shovel-ready and is already approved.” Similar to other sectors in the real estate development industry, the industrial sector is suffering from longer wait times for materials. “The one thing that’s just really driving us crazy on the job sites are material lead times,” Rantala said. “I am now tracking material lead items. In the past 35 years, I’ve never had to worry about that. Now I’m putting it on my construction schedule. Tracking the delivery times, I never had to do it before. Never.” Horn said items such as dock doors, which usually had a delivery time of four to five days, now have a delivery time of up to 12 weeks. “You take that one component and multiply it through all the other items such as HVAC units, dock plates and structural steel, it just takes a longer time,” Horn said. “I just got a quote the other day to get a building delivered and it is 14 months. It went from 16 weeks to 14 months.
The Grand Valley Metropolitan Council has begun the process of developing its FY2023-2026 Transportation Improvement Program (TIP) for Kent and eastern Ottawa counties. GVMC is the metropolitan planning organization for the greater Grand Rapids area, providing a cooperative, comprehensive and ongoing transportation planning and decision-making process covering all modes of transportation as required by federal law. The TIP identifies and outlines proposed federally funded transportation projects every three years, assembled at the suggestion of local jurisdictions, transit agencies, and state and federal transportation officials, and proposed plans offer multiple opportunities for public input. The 2023-2026 TIP development process was set in motion on Nov. 10 at Rapid Central Station, as the transportation programming study group, a subcommittee of GVMC’s technical committee, met to begin proposing projects for the upcoming plan, which are illustrated in part on the organization’s deficiency map on its website. “From 2017 to 2020 we saw our average condition rating for non-MDOT roads slightly increase,” said Lauren Joseph, director of transportation planning for GVMC. “It flattened out a little in 2021, but that could have been related to COVID-19 impacts on the last couple construction seasons. Even with all the projects we do with the federal funding that comes to our region and the money our local agencies are also putting into their roads, and the slight increase in average condition our region has been able to achieve, we still have an average rating in the ‘fair condition’ category.” According to Joseph, a safety, congestion or condition deficiency must be identified for a project to be considered. “Our members are really good in terms of collaborating with each other and coming up with a strong list of projects that will hopefully improve the system throughout the region,” Joseph said. “So basically, the deficiency analysis is the key to (proposing projects). So, we want to be good stewards of the federal dollars and state dollars that we receive in this region and really focus on fixing things that have issues.”
CONTINUED ON PAGE 10
CONTINUED ON PAGE 12
The capital campaign for the space includes a $5 million goal with about $3 million of the funds planned for the building itself and approximately $1 million for staffing and to support programming. Courtesy of Well Design Studio
are really behind this project,” Ringnalda said. “And then I roll out our branding and our big ideas to get a thousand people in here, and everyone’s like, wait a second, this isn’t what I was expecting. So, there’s something about that opportunity to say, OK, we’re gonna bring people in for low cost or free over the next
Material costs, delays and lack of facilities create difficult environment. Danielle Nelson dnelson@grbj.com
The lack of shovel-ready sites is hampering developers who are looking to create industrial facilities that will draw business to West Michigan. Courtesy of JLL
access to supply chain opportunities, which can attract businesses and project development. “I think West Michigan — Grand Rapids — really needs to team up with other municipalities in the state of Michigan and with the state in getting shovel-ready sites for development,” Rantala said. “When we come with a client in hand, there’s no time. They are saying, ‘What is ready? What is available now?’ They can’t wait a year or more to assemble the land and obtain entitlements. They need a property that is ready to go.” MEDC now is working with municipalities in the state to bring industrial sites to shovel-ready status. The organization
GVMC begins transportation improvement development Triannual process involves identifying federally funded projects for region.
year. Talk about what we’re doing (and) tell them we want them in here after it’s big, shiny and new.” Ringnalda said the capital campaign for the space includes a $5 million goal with about $3 million of the funds planned for the building itself and approximately $1 million for staffing and to CONTINUED ON PAGE 17
Industrial market bends under weight of demand
The demand for space in the industrial real estate market is having a reeling effect on companies. According to Bob Horn, senior vice president for JLL, a global commercial real estate services company, the national demand for industrial space is up 22% year-over-year and there are no signs of a slowdown. Scott Rantala, vice president and market lead for JLL’s project and development services team in Grand Rapids, said the high demand for construction materials and industrial space is the result of, in part, a “buying spree” after the COVID-19 shutdown. He said there are several reasons why supply has not kept pace with demand in the industrial market, including a lack of shovel-ready sites, delay times for materials and an increase in prices. Shovel-ready sites, defined by the Michigan Economic Development Corporation (MEDC), include properties that already have a utility infrastructure, utility rate advantages, large contiguous tracts of developable land, access to transportation assets, and
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awarded $728,500 in site readiness grants last year to 10 industrial sites that were identified by communities and local partners. One of the grantees was Muskegon Area First for a site located at 5642 Grand Haven Road in Norton Shores. Although MEDC is working to create shovel-ready sites, the effects of the lack of them were evident earlier this year when Ford decided to build its $11 billion battery plant in Tennessee. “When Ford announced the battery plant, (MEDC) understood that void and they are starting to put emphasis on getting incentives to these developers to get some of these sites assembled,” Horn said. “The next stage is getting utilities to sites — water,
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DECEMBER 13, 2021
GRAND RAPIDS BUSINESS JOURNAL
Engineer uses practical experience to promote STEM in schools Keli Christopher is on a mission to introduce her profession to students. Davenport University hosts Sankofa STEM Academy, a five-week summer camp for middle school students. Courtesy of Alfred Reeves Photography
Danielle Nelson
dnelson@grbj.com
A local engineer is using her ex-
perience to provide children of color in West Michigan with more math and science educational opportunities. Keli Christopher, an agricultural engineer, is the founder of STEM Greenhouse. It is a nonprofit that offers programs to K-12 students to promote math and science proficiencies and address the lack of diversity within STEM professions — careers in
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science, technology, engineering and mathematics. As an agricultural engineer, the Grand Rapids native focused on soil and water, which entails drainage, irrigation and pollution as it relates to water shedding and from agricultural chemicals in the environment. She helped design computer programming that created models that would predict the estimated volume of runoff from a given amount of rainfall. Christopher also designed places for farmers to house their agricultural chemicals so the chemicals would not spill and damage the environment. After actively working as an agricultural engineer, Christopher said she decided to start working with young people of color because she noticed a lot of STEM programs weren’t geared toward minority children. “What I found was that there were two types of people developing STEM programs,” she said. “There were perhaps people of color who are used to dealing with children of color, but they had no STEM experience whatsoever. They were never in a STEM profession. Then there were also white STEM professionals trying to develop programming for children of color. “Neither one could really hit the mark because if you’ve never been in a STEM profession, you don’t really know what it takes, and if you’ve never been a child of color, you don’t really know what they’re going through. So, I had a unique experience in that I’ve been the child of color and I’ve been a STEM professional. I could offer something that a lot of people just cannot offer to this space. Most people with my type of education are working as engineers and they’re doing engineering work, but I decided to go back to work with young people because I want to see a change. I want to see a change in the STEM profession. Not only because it is the right thing to do and it is fair, but because children of color or outnumbering white children in America’s public schools.” In 2014, Christopher decided to start STEM Greenhouse, which offers different programs including Kids Count STEM Club, SAGE, STEM Scholars and Sankofa STEM Academy. Kids Count STEM Club is for students who are in grades 3-5. It focuses on mathematics by offering hands-on activities and games that utilize STEM concepts and it helps students with addition, subtraction, multiplication and division. Sustainable Agriculture, Gardening and Ecology, or SAGE, is an agricultural life science program that is designed for middle school students. The program is based on a practical and applied science curriculum that features sustainable agriculture, gardening and ecology. The program follows a three-year curriculum. Christopher and her team of inCONTINUED ON PAGE 12
GRAND RAPIDS BUSINESS JOURNAL
DECEMBER 13, 2021
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Rising interest rates and a lack of inventory finally are slowing the mortgage industry. Courtesy of istock
Mortgage refinancing finally losing steam as rates climb Lack of housing inventory also means fewer mortgage loans for lenders. Danielle Nelson
dnelson@grbj.com
Mortgage lending activity is slowing after nearly two years of “once-in-a-lifetime” rates and subsequent opportunities. Homeowners have been aggressively taking advantage of the low mortgage refinancing rates since the pandemic began. Bradley Henion, chief lending officer for ChoiceOne Bank, said he saw an approximately 230% increase in mortgage lending in 2020 from 2019 and about 85% of that activity was mortgage refinancing. “Mortgage lending in 2021 has remained approximately 150% over 2019 but has decreased from 2020 due to the volume of refinancing slowing,” he said. “Longterm rates are slowly increasing and there is a lack of inventory on the market.” Scott Setlock, senior vice president for mortgage and consumer lending at Mercantile Bank of Michigan, said his bank recorded $567 million in refinancing activity in 2020. That is an increase from 2019 when he said Mercantile recorded $185 million in refinancing activity. Setlock said clients took advantage of the low mortgage refinance rates for multiple reasons. “Someone may have a 30-year mortgage and they want to refinance it into a 15-year mortgage,” he said. “The benefit of that is, usually, a 15-year mortgage is a lower interest rate than a 30-year, so when rates Henion are down like they are, they’re really getting a kind of a double benefit because rates are down, and 15-year rates are typically lower than 30-year rates.
“They’re really getting some interest rate benefit and now they’re going to pay off that mortgage much, much quicker than what they would have if they stayed on a 30-year mortgage. These customers are choosing typically to pay more per month to help pay off their mortgage quicker. More of their monthly payment goes to pay down the principal of their loan instead of the interest, and so it really starts knocking out that loan balance.” Setlock said even those refinancing one 30-year mortgage into another 30-year loan were seeing significant benefits. “They’re just benefiting from the low interest rates, but they’re still trying to keep that payment overall at a level that represents a 30-year repayment on that loan,” he said. “We do see a lot of that, and so all things equal, it would lower their monthly payment because their interest rate went down.” Similar to ChoiceOne, Setlock said Mercantile is seeing mortgage refinance activity “leveling off.” “What we have seen this year is still very robust refinance activity, especially through the first nine months of this Setlock year, but not quite at the same clip as last year,” he said. “The pool of potential refinance applicants has decreased because a lot of homeowners refinanced back in 2020. Over the last couple of months, we have seen rates start to tick up a little bit, which then causes mortgage rates to go up and so we have seen some leveling off of the refinance activity.” Setlock said mortgage refinancing rates are increasing, in part, due to fear of inflation. According to Freddie Mac, the average annual interest rate on a 30-year, fixed-rate mortgage in 2019 was 3.94%. The annual average declined in 2020 to 3.11%, with its lowest rate at 2.68% in December 2020.
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New office Lighthouse Title Group opened a new office in Menominee. It is located at 945 First St.
Winning title Chicago Title of Michigan Senior Commercial Sales Executive Rory Byme was named Commercial Alliance of Realtors Affiliate of the Year.
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Full-service branch opens Lake Michigan Credit Union opened a new full-service branch in Ada. It is located at 496 Ada Drive SE.
New webpage Independent Bank launched a new environmental, social and governance page on its website. It focuses on the sustainability and societal impact of the bank.
Second location Grand River Bank opened a second location. It is located at 4471 Wilson Ave. SW in Grandville.
Mobile banking Old National Bank launched a mobile banking unit in downtown Grand Rapids. It served at its 161 Monroe Ave. NW location as the bank was temporarily closed for renovations in late summer and fall.
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Grumm’s vision takes off during pandemic
rwatson@grbj.com
G
rowing up with a father and grandfather who were mechanical engineers for the aerospace industry, Dennis Grumm has always had an interest in design and engineering — but his passion led him to a different application. Armed with more knowledge than most about the field due to his family connection, Grumm attended Michigan Technological University in Michigan’s Keweenaw Peninsula — a place he described as “a whole other planet” than Michigan’s Lower Peninsula — graduating with a bachelor’s degree in mechanical engineering in 2005. “I grew up thinking engineering was a cool thing to do, and I guess I had more knowledge of it than a lot of people,” he said. “If you never have any exposure to it, you might not even know you’re interested in it.” Grumm, whose family has German heritage, also spent a lot of time in Germany in his youth, referring to it as his “headquarters,” and so he decided to minor in German — a language he has used several times in his career, dealing with manufacturing customers and attending trade shows in Germany. His Michigan Tech degree stood him in good stead when it was time to job-hunt, he said, as most manufacturers respect that institution and are eager to hire its engineering graduates. Grumm’s first job out of college was at the Spring Lakebased Campbell Grinder Company, which makes high-precision grinding machines for the aerospace industry. “One of the ways I’ve described that (company) is they’re the business that made the machine that made the lens in the Hubble telescope,” Grumm said. “It’s a pretty high-tech place, and it was all oneoff projects. The machines were always custom … so everything we worked on was a new problem we had to solve. “I really got thrown into the fire and had to figure things out and learn pretty quickly.” During his decade there, despite his youth, Grumm rose through the ranks and ultimately
became the research and development group lead, working on high-profile projects for Campbell. “I was responsible for the complete ground-up design and development of high-precision CNC grinding systems used primarily in the aerospace industry,” he said. “My interest in improved performance and marketability led the company’s modernization and growth in technology, including implementation of many new methods and techniques in the design and production of large, dynamic machines capable of complex 3D surface generation in the 1-micrometers tolerance regime. “My emphasis on modularization (benefited) the quality, performance, cost, lead times and even appearance of all Campbell grinding systems produced today.” As he was building his skills, Grumm dreamed of starting his own business one day. The impetus for his company, Oktober Can Seamers, came in 2014 as Grumm was spending a lot of time in breweries and around home brewers and learning there weren’t a lot of great options for small operations when it came to canning their beverages. Most canneries only will do production on large batches, and bottling can be a pain with the constant need to wash and sterilize. “I always knew at some point I’d probably start my own company,” Grumm said. “Even when I was going to Michigan Tech, I was already drawing up plans for doing my own thing, just because I always wanted to be in control of my own design projects. I’d been writing down ideas for years, and the can seamer was the first idea that clearly had some customers and there was a market for it.” Grumm said his idea for the machine was so simple that it didn’t require a huge, up-front monetary investment. He and his business partner, Clint LeaTrea, a childhood friend and fellow Michigan Tech alum, started the company together out of a basement, with no website, and first started selling the invention in 2016. Grumm did the engineering, and LeaTrea wrangled the purchasing and sourcing — roles they continue in today. Oktober Can Seamers’ flagship
DENNIS GRUMM Organization: Oktober Can Seamers Position: Founder, CEO and engineer Age: 39 Birthplace: Shelby Residence: Grand Rapids Biggest Career Break: Landing his first job as an engineer at the Spring Lake-based Campbell Grinder Company in 2006, where he had the opportunity to work on high-profile projects and take on a lot of responsibility for a 24-year-old.
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Dennis Grumm knew while he was a student at Michigan Tech he would someday start his own business. Courtesy of Oktober Can Seamers
Founder, CEO and engineer at Oktober Can Seamers helps accommodate surge in to-go alcohol sales. Rachel Watson
DECEMBER 13, 2021
A late class during her undergraduate career led Shorouq Almallah to turn her attention to information science. Courtesy 616 Media
product is a hand-operated machine that costs $2,500 and cans one beer — or wine, cider, seltzer, kombucha or wellness drink— at a time. The co-founders source all of their parts locally, leaning on the manufacturing base that already exists in West Michigan. At first, during the development phase, Grumm continued working full time at Campbell, but it quickly became apparent the business had traction and demanded his undivided attention, so he quit his job and dove in headfirst. Grumm said he has enjoyed working with customers in the beverage industry, whom he described as a laid-back and collaborative bunch who know a lot about hard work and entrepreneurship. “Beer City USA” is what gave Oktober Can Seamers its initial business, but the company now has customers around the world, anywhere there’s a concentrated beverage industry, doing direct-to-customer e-commerce and working with international reseller partners. “(I) definitely enjoy the freedom to make decisions for better or worse,” Grumm said. “If something goes wrong, I don’t have to be annoyed with somebody else about it — at the end of the day, it’s on me. And if something goes right, it’s on me, or on us.” The company’s headquarters and production are based at 5 Colfax St. NE in Grand Rapids, with another location in Sparks, Nevada, and 16 employees overall. Oktober Can Seamers currently offers various models of
its flagship product, as well as replacement parts and instructions for those to be swapped out with simple hand tools if they wear out. The company also sells cans by the pallet as a service for its clients, since cans usually come by the truckload, which isn’t ideal for small-batch production. Grumm recently hired more engineers who are working on building more complex machines that can do larger-scale projects, so Oktober Can Seamers can grow with its customers. While many companies struggled when the pandemic hit, Grumm said it was the opposite for Oktober Can Seamers. As restaurants, bars and breweries were required to shut down unless they could offer to-go food and beverages, suddenly, more businesses needed to be able to can drinks. “Our machine cans (drinks) to-go, right off the taps. Instead of us shutting down, it was the opposite: Our sales went through the roof for the whole year, basically trying to keep all these breweries from having to close their doors,” he said. “It was madness in 2020.” The busyness has continued in 2021, with sales far higher than they were in 2019. Grumm takes his inspiration not only from his dad and granddad — who are both retired but still offer consulting services and occasional advice — but from all the designers, entrepreneurs and engineers in history whose inventions and leadership have powered the world. Although Oktober Can Seam-
ers has been in business for only five years, Grumm said he still is having fun. “I’m very proud to have built my business from scratch, with manageable and steady growth over the past five years,” he said. “We currently have two published patents for our products. “It’s kind of fun to think back on how we started off. If somebody showed me our business right now, I would say, ‘Wow, that looks like a really complicated thing to have done.’ … Step by step, it just kind of grew. Something that I think of is, if you want to do something, you’ve got to just start doing it and see how it grows.” He said his advice to other startups is that doing everything yourself only takes a business so far. Over time, he added social media coordinators, bookkeepers, accountants and a business-savvy bench of talent, including a team of engineers, marketing and customer relations professionals, manufacturing technicians, and e-commerce and shipping/receiving experts. “Eventually, (our business) got to the point where we knew word of mouth wasn’t getting out any faster, so then, we started adding some marketing and doing some social media stuff,” he said. “It was nice, steady growth, but it was good to have that time where it was just word of mouth so we could get our feet wet and learn how to build the machines fast enough, how to make sure that they worked and how to keep our customers happy without growing too fast.”
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DECEMBER 13, 2021
GRAND RAPIDS BUSINESS JOURNAL
Autocam Medical recognizes apprenticeship grads Fourth class of CNC machinist students receive certificates of completion at the AMP Lab. Rachel Watson
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The Advanced Manufacturing Partnership (AMP) Lab has churned out another group of CNC machinists from its apprenticeship program. Kentwood-based Autocam Medical, a global contract manufacturer of precision surgical and medical components and devices, said Dec. 3 it presented 11 students with certificates of completion for their computer numerical control (CNC) machinist apprentice program during a Nov. 10 ceremony at the AMP Lab @ Western Michigan University in Grand Rapids. The event, recognizing the company’s fourth class of graduates, included a few words of motivation and inspiration by John Kennedy IV, general manager of Autocam Medical, and Bill Pink, president of Grand Rapids Community College. The year-round program requires students to complete over 700 hours of classroom instruction over a period of 90 weeks. Apprentices are employed by Au-
Apprentices are employed by Autocam Medical, maintaining a full work schedule during the training period. Courtesy of Autocam Medical tocam Medical, maintaining a full tice program is a win-win; it’s a work schedule during the training win for the skilled trades industry period. In addition to CNC ma- and a win for the students,” Beach chinist certification, the course said. “The students gain skills that of study also covers the necessary put them on a career path with unschooling required by the U.S. De- limited opportunity, and it helps partment of Labor for students build a ready workforce for the to receive a certified journeyman manufacturing industry, which is card and puts them on the path to starving for CNC machinists.” As part of their training, stureceive an associate degree, earndents are challenged to machine ing 27 college credits. GRCC instructor Andy Beach, two intricate objects. The finished an industry veteran with over 20 projects are reflective of the caliyears of experience, said the pro- ber of machinists produced by the program, Beach said. gram has many benefits. Two graduates, Wrindy Haus“Autocam Medical’s appren-
er and Ethan Richey, recently won a first-place prize in Mastercam’s global Master of CAM Wildest Parts Machining Competition in the teams division for a Thor’s hammer they machined during their apprenticeship. “Our program is quite uncommon. In addition to the specialized training that our students receive, we pay for 100% of their college tuition and provide them with a full-time job while they are receiving training,” said Kristy White, human resources director for Autocam Medical. “The unique apprenticeship program is a key reason the company was named the Grand Rapids Chamber of Commerce’s EPIC Award winner in the Excellence in Business category this year.” Autocam Medical is a global contract manufacturer of precision-machined drill bits, drivers, screws, plates, cutting tools and other complex, highly engineered surgical implants, instruments and handpieces, as well as other device components. Its specialties are in CNC milling, turning and cutter grinding. The company is a supplier to medical device manufacturers around the world that focus on orthopedics; spine; robotics; ophthalmology; vascular; ear, nose and throat; general surgical equipment; and diagnostics. Autocam Medical has
achieved ISO 13485:2016 certification and is a Food & Drug Administration registered facility. In addition to its facilities in Kentwood, Autocam Medical has operations in Murfreesboro, Tennessee; Plymouth, Massachusetts; Suzhou, China; and Indaiatuba, Brazil. Autocam Medical is built around investing in employees and their growth within a culture that trusts and respects every individual, the company said, noting its success depends on the knowledge employees bring to the team every day. Autocam Medical provides employees educational opportunities with nocost-to-them tuition, and it offers competitive salaries, quarterly bonus incentives, a 401(k) match and a premium-free health plan. To keep up with Autocam Medical’s ongoing growth in West Michigan, the company will be expanding its footprint with a new plant in Kentwood, which is expected to be ready for occupancy in January, according to a previous Business Journal report. The expansion will create 250 jobs, and the company will ramp up hiring of machinists, apprentices, engineers and technicians in 2022. Those interested in job opportunities can contact Kristy White at kwhite@autocam-medical.com.
Industrial market bends under weight of demand CONTINUED FROM PAGE 3
“People want to get into the buildings. I’ve got several people who would like to get into buildings sooner than the building is completed. They are actually signing leases on buildings that have not been built yet.” To combat the time delay and to meet the demand, Horn said the industry is looking at alternatives such as using different building products during construction. He said precast concrete buildings are becoming more popular in the Chicago and Indianapolis areas than they were in the past. The wall panels in those buildings are cast in concrete, which is more readily available, but the precast-concrete concept has not gained much popularity in Grand Rapids. Horn said normally the large markets use pre-engineered buildings that have steel wall panel units. The high demand and lengthening construction times also have led to an increase in prices. Usually, prices change once or twice per year, but now, Horn said, developers are seeing an increase monthly and sometimes daily. Rantala said due to the postCOVID demand, no one could keep up, and as orders were being filled, ships that transported ma-
terials to U.S. ports were waiting to be unloaded. “They say there’s a shortage of truck drivers but what it is, is there’s only a certain amount of those container flatbeds,” he said. “Once they unload the container from the ship, it gets taken off of the port site, but sometimes they’re stored in fields and that flatbed stays with that container. They need that little flatbed truck to go back to unload more containers and that’s part of the holdup.” Rantala said he is experiencing the repercussions of that holdup. “I just had a project where we paid, we knew the ship date, and all of a sudden the manufacturer called the supplier and they called us and said, ‘Oh, by the way, there’s a $4,000 increase in freight,’” he said. “He was supposed to ship it in three days. We’ve been waiting already for months, and three days before it’s supposed to be shipped, they changed and said here’s a $4,000 change order for freight. “It’s like we’re being held hostage. That’s how we feel. That is what you have to deal with today, those types of situations. Until it’s actually shipped and on the job site, you have the risk of getting hit with price increases whether it’s on materials or shipping. That’s the reality of today.”
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GRAND RAPIDS BUSINESS JOURNAL
DECEMBER 13, 2021
GVMC begins transportation improvement development CONTINUED FROM PAGE 3
The GVMC transportation committee handbook indicates deficiencies are identified through a process called the Pavement Surface Evaluation and Rating (PASER) system, where staff representatives from individual jurisdictions collect field data in GVMC’s data collection vehicle. These ratings are then verified by GVMC using data and photos collected concurrently with the automated data collection system. Federal funds are allocated to projects based on the system’s rating criteria of deficiency severity, and projects receiving funding of any kind are intended to ensure a long-lasting, improved condition. PASER ratings of 8-10 are not eligible for federal funds; a 7 rating is eligible for crack sealing funding; ratings of 5 or 6 are eligible for sealcoat/thin overlay funding; those with a 4 rating can use structural overlay funding; and PASER ratings of 1-3 are eligible for reconstruction funding. “We have federal performance measures that we have to follow and incorporate into our planning process as well, and so there are performance measures related to congestion and freight, (and) there are performance measures related to safety,” Joseph said. “Each year we have to establish or support targets for different federal performance measures, and safety is one of those measures. We look at the number of crashes, fatalities, and injuries, and the rates of injury and fatality, (along
with) non-motorized fatalities and serious injuries and identify where those are occurring. (We then) flag those as safety issues so that we can make sure to incorporate safety improvements in all our projects, as well.” According to Joseph, 1,547 miles of federal roads were surveyed in the region this year. GVMC also rated 1,037 miles of local roads and the Kent County Road Commission rated 1,014 miles of roads within its jurisdiction. The organization’s deficiency map originally identified 1,517 segments of roadway that are deficient in some way, but Joseph said agencies may split a segment logically or submit a project with multiple segments along a deficient roadway. In addition, there are non-motorized, transit and MDOT needs that are not captured within the deficiency map. New and modified submissions also find their way to committee meetings, and GVMC representatives may move and change projects to meet federal funding targets, making for a malleable number of deficiencies and potential projects, she said. “Including the current illustrative list, there are over 500 projects total. With the uncertainty related to the additional federal funding that may be coming to our region (from the newly passed federal infrastructure bill), I expect the illustrative list to grow so we are ready if we are able to fund more projects,” she said. “... The number of projects
GVMC’s transportation plan includes roadways that are under federal, state, county and local jurisdiction. Courtesy of Kendell Joseph
that get programmed really depends upon project costs, but in the last five years we’ve averaged about 115 projects per year in the TIP. … That is one of the reasons why we have really tried to put together a robust, illustrative list of projects so that when we do find out if and how much money we’re going to receive (from the infrastructure bill), that we have good projects to draw from, that we can work fast, and get those improvements in the TIP, as well.” Joseph said the principal challenge to maintaining pavement in a state of good repair is shortage in funding compared to need.
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Federal and state agencies provide funding, as well as “locals,” or cities, villages and the county road commission. Locals also have their own funding with a minimum match requirement of 20%. “So, it’s a lot of federal and state money, but our locals also put in a significant amount. … And a lot of times our locals actually over-match to get more projects into the transportation improvement program so they can stretch those federal dollars. Sometimes, we end up with a 65/35 or a 75/25 match kind of ratio for those.” All projects using federal
transportation funds are required to go through GVMC’s planning process as part of the TIP, with GVMC’s primary goal to use all of those funds, including the Congestion Mitigation and Air Quality Improvement Program (CMAQ), which provides funding to states for projects designed to reduce traffic congestion and improve air quality. Joseph said the organization encourages public comment and attendance at planning meetings for well-rounded input on transportation priorities and where dollars are spent. More information is at gvmc.org.
Engineer uses experience to promote STEM in schools CONTINUED FROM PAGE 4
structors visit two schools, including Dickinson Academy, where she went to school, and Martin Luther King Academy, twice a week for eight weeks. STEM Scholars is an afterschool program for students who are enrolled in schools that do not have science teachers. Christopher currently is working with four schools. “We go to the schools that don’t have science teachers for its middle school students,” she said. “The school that I started with is a school that I went to for elementary school. Now it has been converted to a K-8 building but the students still have one teacher all day, just like they were in elementary school. They don’t have a science teacher. They have one teacher trying to teach everything and science is the last thing on their mind. Plus, they usually don’t have a science background and they don’t have any budget for the science supplies. I started with one school and now we’re up to serving four schools, but there are additional schools that don’t have science teachers. There is a lack of science teachers. There is a lack of math teachers in our school systems, just teachers in general. There is a teacher shortage.” Sankofa STEM Academy is a five-week summer camp program
that is held at Davenport University. It focuses on math and science proficiency for middle school students. The program includes expert speakers in the STEM field, hands-on experiential learning and field trips. In addition to focusing on math and science, Christopher also incorporates technology and engineering in her programs. During the summer at Davenport, STEM Greenhouse worked with Loop Coding Center and its coding instructors to teach students coding. The engineering aspect of her program, Christopher said, is applying math and science to solve problems using the engineering design process such as the science method of doing research, creating a hypothesis, testing the hypothesis and coming to a conclusion. “We give kids real-world problems and tell them to use the math and science that they have learned to solve that problem,” she said. “We come up with a lot of activities where they have to get creative and utilize what they’ve learned in math and science to solve a problem. There’s all kinds of little problems that we come up with, but we want them to know that there is an engineering design process, and we want them to try to learn how to go through that process as well.”
GRAND RAPIDS BUSINESS JOURNAL
DECEMBER 13, 2021
13
Nursing shortage renews push for patient load limits Union claims half of registered nurses said they are assigned unsafe patient loads. Nicholas Simon Capital News Service LANSING — A staffing crisis at Michigan hospitals has renewed efforts to protect nurses from unmanageable patient loads and too many hours of consecutive work. The Safe Patient Care Act, first introduced in 2017, has picked up additional cosponsors from both parties in the House and Senate. It seeks to regulate how many patients a nurse can care for and the number of consecutive hours that they can work. It would also publicize hospital nurse-to-patient ratios. Nurses are “forced to make painful choices every day,” Jamie Brown, president of the Michigan Nurses Association, said in a statement. “The hospital industry has been purposely getting by with inadequate (registered nurse) staffing levels for years,” said Brown, who leads the state’s largest nurses union. “Nurses have long warned that our communities would suffer the kind of dangerous crisis that nurses and patients are facing now. The pandemic has only worsened and exposed hospitals’
emphasis on money above all else,” Brown said. The union says that those choices are a result of hospitals trying to protect their bottom line. But Brian Peters, chief executive officer of the Michigan Hospital Association, argues that government mandates for every hospital would be ineffective and make it harder for hospitals to operate. “The one-size-fits-all approach inherent in legislatively mandated decisions impacting clinical care typically fails to recognize the complexity of patient care and the diversity of health care environments,” Peters said in a statement. Unlike truck drivers, air-traffic controllers, pilots and rail operators, nurses have no federal limit on how many consecutive hours they can be forced to work, according to the Michigan Nurses Association. Nurses can be fired and have their licenses stripped for refusing forced overtime even if they don’t feel fit to work because hospitals can claim that they are abandoning their patients. Medical errors are the leading cause of preventable death, beating out smoking and obesity, according to the Journal of Patient Safety. Nationally, the Nurses Association estimates that 440,000 people in the United States die every year due to infections and
Unlike truck drivers, air-traffic controllers, pilots and rail operators, nurses have no federal limit on how many consecutive hours they can be forced to work. Courtesy of istock
delayed or incorrect medications, problems that proper nursing care could prevent. Studies over the past two decades have linked patient mortality and staffing ratios, according to the union. In Michigan, even before the pandemic, one in five nurses was aware of when understaffing led to a patient’s death, and half of registered nurses said they are assigned unsafe patient loads at least half the time they are working, according to the union.
Hospitals say that staffing is a collaborative process and fixed ratios “don’t allow for flexibility and innovation,” said John Karasinski, communications director for the Michigan Hospital Association. “Every hospital in Michigan has a process in place to ensure that each of their clinical units is appropriately staffed,” Karasinski said. “These processes are based on individual patient needs and the training, experience and
capabilities of the entire clinical care team, including nurses.” However, half of Michigan nurses say hospitals rarely or never adjust their schedules, even when they report unsafe workloads, according to a survey paid for by the Nurses Association. The majority (80%) of Michigan nurses are not protected by a union and face harsh repercussions for speaking out against hospital practices. The Nurses Association reports that multiple nurses have been fired over the last two years for trying to raise the alarm over this issue, worsening staffing shortages that already are at crisis levels. Staffing shortages are affecting hospitals across the state. The Michigan Hospital Association said 80% of nursing groups nationally have reported an increase in turnover due to the pandemic and that there are nearly 2 million openings for nurses across the country. “Hospitals want to hire more nurses, and they want to retain the nurses they currently employ, but the current national demand for nurses far exceeds the available supply,” Karasinski said. The Michigan Nurses Association said the Safe Patient Care Act will bring nurses back to work. It points to data from the federal Department of Health and Human Services that indicates CONTINUED ON PAGE 18
14
GRAND RAPIDS BUSINESS JOURNAL
DECEMBER 13, 2021
COMMENT & OPINION
GUEST COLUMN John Essex and Justin Winslow
Lawmakers must win race to invest in future
T
here are times in history when leaders are called upon to step up and act with a sense of urgency to meet a challenge or take advantage of an opportunity. In Michigan, that time is right now. Through the federal American Rescue Plan, our state has received billions of dollars to address priorities like fixing aging infrastructure and investing in economic and talent development. If we play our cards right, these one-time federal funds can be leveraged to create new momentum for Michigan’s economy and new opportunities for communities and families across the state. Failing to act swiftly and strategically means falling behind other states. A statewide coalition of public and private sector leaders has come together to develop a strategic plan for investing Michigan’s ARP resources. We call it the Michigan Prosperity Roadmap and we call on our state lawmakers in Lansing to seize this crucial moment in our state’s history by taking action right now to put Michigan on the road from recovery to prosperity. The COVID-19 pandemic has caused significant harm to Michigan’s economy over the past 18 months, but if we act swiftly to invest in infrastructure, job training, economic development, new technologies and more, we will not only recover from the pandemic but also make sure that Michigan is at the forefront of the regional, national and global competition for new investments and new jobs. The Michigan Prosperity Roadmap calls for major new investments in key areas that include expanding state economic
incentive programs to restart development projects stalled by the pandemic, supporting the Michigan Economic Development Corporation’s Michigan Build Ready Sites program to prepare for large-scale investments, leveraging our state’s competitive advantage to strengthen the building material supply chain, and investing more than $300 million in job training and direct grants to small employers who have suffered the most during the pandemic. No job sector in Michigan has been hit harder than the restaurant and hospitality industries. A recent survey found that nearly two-thirds of Michigan restaurant operators report that sales remain below pre-pandemic levels and half say they are less profitable than just three months ago. A whopping 87% of restaurants report that they don’t have enough employees to meet customer demand. That’s why the Michigan Prosperity Roadmap calls for investments in facility improvements at restaurants, event spaces and banquet facilities; training resources to help create the next generation of hospitality workers; and a targeted incentive program to help restart Michigan’s eventbased economy by offering a 15% credit against the hard costs associated with hosting a meeting or event through 2022. At this crucial moment in Michigan’s history, we can’t afford to sit on the sidelines while other states are racing down the track and making smart, strategic investments with their ARP funds that will power their economic recovery and create pathways to success for residents. Will Michigan lawmakers and
our governor act now to ensure that Michigan leads the nation? Or will we lose a construction season, a transformational economic development project, or the opportunity to attract jobs and talent? By stepping up to meet the challenges and opportunities of this historic moment, our elected leaders can ensure a strong and prosperous Michigan for decades to come. But that won’t happen if delay and indecision drive the car instead of the urgency other states
are embracing. Contact your state legislators and tell them that if Michigan is going to win this race, the time to act is right now. Learn more about our comprehensive plan for Michigan’s future at miroadmap.com. John Essex is managing director of Port City Ventures in Muskegon. Justin Winslow is president and CEO of the Michigan Restaurant and Lodging Association. Both members of the Coalition for a Strong and Prosperous Michigan.
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Take measures now before having to file for bankruptcy
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ederal stimulus funds used to prop up struggling businesses during the COVID-19 pandemic have delayed bankruptcy filings so far — but that may be coming to an end. As federal dollars and commercial loans begin to dry up, bankruptcies are expected to increase starting in the first quarter of 2022 after dipping well below average this year, particularly among those in the automotive, hospitality and health care industries. That should come as little surprise since our fledgling recovery remains in its early stages. The global chip shortage slowing the manufacture of automobiles, computers, medical equipment and other electronic devices is expected to continue at least through mid-2022. Banks are likely to start cracking down on bad loans in the first quarter of the new year. In both cases, already-struggling businesses will be negatively impacted even more, with many finding themselves in the hot seat with lenders due to cash flow issues.
Three steps before filing For many of these businesses, bankruptcy isn’t a matter of “if” but “when.” The good news, though, is there are things organizations can do now to better position themselves to come through a bankruptcy restructuring. The sooner a company gets started in righting the ship, the more quickly it can come out of financial distress. For some businesses that find themselves facing bankruptcy, a forbearance agreement with the lender makes great sense. Under this agreement, the business gets time to resolve its financial issues and return to a payment schedule acceptable to the bank. Before approaching a lender about forbearance, businesses should consider three steps to prepare themselves for a bankruptcy filing. These include: •Paying the important bills, such as taxes, retirement contributions and other obligations to key suppliers that you will need in the bankruptcy. Stay current on federal and state taxes to avoid personal liability
for nonpayment. •Working with your accountant to make sure your financials are accurate. Accurate financial information, including projections, is essential to any bankruptcy filing or workout. •Hiring experienced professionals. Consider retaining a financial consultant who can help build a plan and draft projections that accurately reflect your organization’s financial condition and rebuild the relationship with your lender. Work with an attorney who focuses on bankruptcy and restructuring to ensure the financial plan meets legal requirements and sets your business up for future success. Throughout the pandemic, we have been reminded of the fact we live in a global world. We have seen
firsthand how the challenges of one company that makes a certain part or product can throw the entire supply chain into chaos. This reality has reared its ugly head in raw material shortages, supply chain snarls, gridlock at our ports and other issues. With the right plan and right professional help, struggling businesses can pull through this challenging time, come out stronger on the other side by using bankruptcy protections to restructure debt and position a business for continued success. Rozanne M. Giunta is a partner in the law firm Warner Norcross + Judd LLP who concentrates her practice in bankruptcy and restructuring. She can be reached at rgiunta@wnj.com.
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GRAND RAPIDS BUSINESS JOURNAL
DECEMBER 13, 2021
15
GUEST COLUMN James Berg
Essence Restaurant Group using a new plan forward
W
e are now over 18 months into this pandemic and every company in every industry in every corner of the world is struggling with the same issue — people. More specifically, a lack of them in the workforce. A quick Google search will reveal that our global population has reached 7.9 billion, more than enough people for a healthy workforce, yet people are not returning to work. And we don’t really understand why. If we’re still struggling with wanting things to change back, it’s a futile struggle. We are still in a pandemic and must accept it by making a new plan today that will move us forward and create a new tomorrow. We must first discern the difference between what we can control and what is beyond our control. As workers, I believe we have to accept
that this is not going to change, and we absolutely must adjust our thinking and actions if we want to keep our doors open; it is beyond our control. Wishing and hoping for a different outcome is not an approach we can invest in any longer — we’re out of time on this one, my friends, and I believe what we are experiencing today will also be our tomorrow. So, what do we do? We can start by focusing on the things that we can control. First and foremost, we can control how we react to our situation. Instead of creating more division, we can begin to find common ground. Every single person on planet Earth has been impacted by the pandemic — some have lost time, vacations, offices; others have lost businesses; and the most unfortunate have had to endure the devastation of lost loved ones or
the loss of their own life. Most of us have hoped for things to return to normal, and if we’re honest with ourselves, we all understand at this point that no amount of hoping will make that so. Adversity is inevitable; learning and growing from adversity is not. However, it is within our control to reap the benefits, not just the pain, of adversity. It’s time to face the constant of change by accepting where we’re at, shifting our perspectives and adapting. We can’t control the pandemic, but we can control our response to it. We can manage our thoughts, our actions and what we say. We can continue to focus on our values and further cultivate our character and culture. No amount of arguing or contributing to divisive conversations about how we got here is going to resolve this problem or help anyone.
What will help? Accepting what the current general culture is saying, how they are feeling and what they want the future to look like. I believe both a solid work ethic and more free time can survive simultaneously. And the owners and operators who can create this balance will be the ones who will thrive in the future. When we lead with our values and take some intelligent risks, we can create a stronger, more attractive work culture that the general culture is attracted to! Improving the lives of those we serve is one thing within our control. Beginning in 2022, ERG will be offering all employees the following: •Full medical benefits to all fulltime employees at a reduced cost. •Essence restaurants will close for the first week in January and the first week in July, giving all manag-
ers/chefs additional paid time off. •Highly competitive pay structure and flex work schedules. I am hopeful that this change will matter to the people in our industry and will help improve the culture of the hospitality industry for the better — both for members and guests. Helping build transparency in our food systems, being part of something that matters and is greater than ourselves and improving the lives of those we serve and those who serve — these are things that we can control. And by doing so, along with leading with and living by our values, we can be a force of change that also creates value for our society. James Berg is managing partner of Essence Restaurant Group, which includes Bistro Bella Vita, Green Well and Grove.
Supply chain panel examines root causes CONTINUED FROM PAGE 1
Dan VandenBosh, vice president, commercial and health care banking, at Commerce Bank in Grand Rapids, spoke to the Business Journal after the panel discussion to share a West Michigan perspective. The problems Tang — who is a global supply chain scholar with multiple published books on the subject — said these days he feels somewhat like the Maytag Man, whom everyone ignored when their washing machines were running fine and who is in high demand now that they’re all broken and no spare parts are available to repair them. He defined the global supply chain as “a network that connects all the way from the raw material suppliers to the manufacturers to the ports, to go through the logistics to the customs to the warehouse to the distribution center to the retailers to the consumer’s hand.” He said from the consumer’s perspective, supply chain boils down to product availability and pricing. Manufacturers and retailers, he said, care about whether the supply is meeting the demand in a timely fashion and in the most cost-efficient manner. The supplier and the logistics providers, however, are thinking about whether they can get the products moving and get the cash to keep their operations going, he said. While port blockages arguably have been getting the most media attention, with hundreds of cargo ships waiting in line at the Los Angeles and Long Beach, California, ports, for miles out into the ocean, Tang said the ports are only one link in the logistical chain, and the current crisis has multiple causes and pain points. His “forensic supply chain analysis” of key suspects causing the problem included the following six elements: 1. Consumer demand shifted
from services to goods during the pandemic. 2. Supply from Asia lost its reliability due to pandemic-related economic shutdowns. 3. The ports are at capacity because so many goods are being shipped. 4. There’s a truck driver shortage, exacerbated by many truck driver training schools closing during the pandemic, and there’s a semi-truck chassis (or rig) shortage, too. 5. Rail yards are full, and when they do transport their goods, often there’s nowhere to put them on the receiving end, because… 6. Warehouses also are full. Possible solutions Ottensmeyer echoed Tang’s thoughts about the key issues and added the labor shortage also is a key component of supply chain bottlenecks. As a railroad man, he said one thing his company is doing that he hopes will alleviate rail transport congestion is its upcoming merger with Canadian Pacific Railway, which will expand its North American footprint and connect ports in a half-dozen coastal areas of the U.S., Canada and Mexico. On a larger scale, Ottensmeyer said many have high hopes that the U.S.-Mexico-Canada Agreement (USMCA) will assist with nearshoring production and lessening North America’s dependence on Asian suppliers, although in its first 18 months, the trade agreement experienced delays in implementation due to COVID-19, closing borders and the U.S. presidential administration transition. On the other hand, Tang said President Joe Biden’s administration has emphasized bolstering the supply chain more than any other administration in U.S. history, commissioning a review of the entire supply chain, appointing John Porcari as a ports envoy, proposing multimillion-dollar port
infrastructure investments and tasking U.S. Department of Transportation Secretary Pete Buttigieg with getting the supply chain back on track. Citing a quote from Federal Reserve Chair Janet Yellen, who said on CNBC recently that the White House is involved in a “wealth of interventions,” Ottensmeyer said it would be more accurate to call them “a wealth of good ideas about interventions,” because they haven’t been implemented yet. “One of my former bosses, a favorite quote of his was, ‘You can’t just pull capacity out of your pocket.’ All of these things take time, and short-term interventions are going to be very difficult to alleviate the issues that we’re seeing, because the investment that’s required for transportation, infrastructure, warehouse capacity, the labor issues — all of those take
“One of my former bosses, a favorite quote of his was, ‘You can’t just pull capacity out of your pocket.’ All of these things take time, and short-term interventions are going to be very difficult to alleviate the issues that we’re seeing, because the investment that’s required for transportation, infrastructure, warehouse capacity, the labor issues — all of those take time.” Patrick Ottensmeyer time,” Ottensmeyer said. In the meantime, suppliers, manufacturers and retailers are shifting from a “just-in-time” to a
“just-in-case” approach to inventory management, thinking that having more inventory on hand will ensure they don’t miss sales opportunities while waiting on the global supply chain, Ottensmeyer and Commerce moderator Barth said. Ottensmeyer added another solution to alleviating the supply chain will come in the form of inflation; as prices rise, demand in turn will fall. The real estate side Fraker is the global head for CBRE’s industrial and logistics sector, and his comments focused on the unprecedented squeeze on industrial real estate due to skyrocketing consumer demand for goods. “These are the major fundamental metrics that we’re seeing in the U.S. today, and every single metric up here is an all-time record — all-time highest average lease rates (and) all-time lowest vacancy rates in the nation,” he said. In the third quarter, CBRE reported an average industrial real estate availability rate of 6%, an average vacancy rate of 3.6%, a net asking rent of $8.92 per square foot and a net absorption rate of 291.9 million square feet year to date — the highest level since 2016 — with a record 449 million square feet currently under construction. The demand for new construction for the logistics sector — thanks largely to the e-commerce boom — is greater than the supply, which means that 36% of all industrial and logistics (i.e., warehouse/ distribution) buildings being developed today are leased before completion, Fraker said. “We have a metric internally here at CBRE that for every $1 billion increase of e-commerce retail sales, there’s an additional 1 million square feet of distribution space required,” Fraker said. “We’re expecting to almost dou-
ble e-commerce in the near term, and that’s going to create a tremendous amount of distribution center demand.” Fraker said the rising costs of steel, concrete and other construction materials, as well as increasing land costs, may hamper industrial builders’ ability to keep up with new construction, but on the other hand, pre-leasing demand from tenants and rental rate increases may be able to fund the costs of new speculative developments by investors. Local take Commerce Bank is seeing many customers experiencing unprecedented shortages of goods and raw materials, but for West Michigan health systems — the industry that employs the largest number of workers in the region — the focus is on the talent shortage. “It’s not just the nursing staff, which is a huge issue; it’s across the board,” said VandenBosch, a VP at Commerce’s Grand Rapids location. VandenBosh said Commerce Bank is working to alleviate the labor shortage by helping health systems automate processes such as accounts payable and accounts receivable. He said on the commercial side, local businesses and manufacturers are doing exactly what the panelists said: shifting from a just-in-time to just-in-case inventory management approach, trying to stockpile goods against future shortages. “At Commerce Bank, we’re just trying to really understand our clients’ needs and trying to adapt with changing market environment and be a resource through our different products and services,” he said. The full Commerce Bank “State of the Supply Chain” webinar is available to view at bit. ly/CBsupplychainwebinar.
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DECEMBER 13, 2021
GRAND RAPIDS BUSINESS JOURNAL
Teaching in low-income districts could prompt loan forgiveness Danielle James
Capital News Service
Incentivizing teachers in lower income school districts could help to combat educator shortages, according to the Michigan Education Association, the state’s largest union of school personnel. Courtesy of istock
LANSING — Student loans could be tied to student lunches for teachers in some Michigan school districts desperately seeking to attract them. A bill recently introduced in the Senate would establish a student loan forgiveness program for people teaching in schools
where at least half of the students meet the income eligibility criteria for the free or reduced lunch program. That’s 45% of public school students in Michigan, according to recent data from Public School Review, an organization that compiles public school data by state. Of the 3,381 Michigan public schools listed in its report, 1,695
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have over 50% student eligibility for free or reduced lunches. Incentivizing teachers in lower income school districts could help to combat educator shortages, said Doug Pratt, director of public affairs for the Michigan Education Association, the state’s largest union of school personnel. “There are not enough people entering the field through teacher prep and too many people leaving early in their career for other professions that compensate people better,” Pratt said. “It’s a perfect storm of problems, and we’re going to need a variety of solutions like student loan forgiveness to bring more people in and keep them in the profession.” Teachers in qualifying school districts would receive forgiveness for up to $20,000 of state and federal loans during their first four years of school if the bill passes. The state Department of Education would administer funds and create an application process. A teachers loan forgiveness fund would be created within the state treasury to provide the money. The Education Department would award the grants yearly for 10% of a teacher’s total remaining debt each year of continued working in a qualifying school district. That could continue for up to 10 years. To stay eligible for the loan forgiveness program, teachers would need to continue teaching in qualifying districts each year. The department still is reviewing the bill and has no position at this time, said William DiSessa, a spokesperson for the department. The bill was sponsored by Sen. Rosemary Bayer, D-Beverly Hills, and was dubbed the “Excellence in Education Act” in the legislation. Bayer did not respond to a request for comment. Pratt said a similar federal program, called the Public Service Loan Forgiveness Program, denied 98% of applicants because of complex rules. And attracting teachers is not just about money, he said. Teacher burnout leading to early retirement is another problem. “One of the drivers behind the educator shortage is certainly the lack of compensation in education, but it’s also the lack of respect,” Pratt said. “We’ve got to solve both those things. “One way to do that is to say we understand the skyrocketing student loan rates, and that we can address those,” he said. Department of Education data showed teacher shortages in a wide range of categories, including language arts, mathematics, sociology and special education, according to a memorandum from the department.
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DECEMBER 13, 2021
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Curtain rising on theater’s next act CONTINUED FROM PAGE 3
support programming. The board currently envisions 200 events per year with maybe 50,000-plus visitors. He said neighborhood concerns surrounding the space typically focus on accessibility and whether a flashy, new theater, with what Ringnalda imagines has the “coolest marquee in town,” belongs in the Burton Heights neighborhood, bringing up conversations of equity and inclusion. “I mean, it’s really a discussion around gentrification. But the flip side of that is, what does a resilient and stabilized neighborhood look like, and having places like this where people can walk and ride the bus to, and work?” he said. Friends of Four Star Theatre started its fundraising campaign about two months ago, which Ringnalda said has been backed mostly by friends and family with hopes to achieve needed funds for the conversion of the space over the next 12 to 18 months. Phase two of fundraising will focus on traditional community funders including community foundation support and statewide and national campaign contributors. “Funding capital projects is harder now than it was pre-pandemic because so much of their funding is going to sustaining organizations that really need it and certainly with an eye on social justice and other things as well,” he said. “So that capacity for some of those foundations who might otherwise have gotten behind this already, you know, we’re not operating yet. We don’t have that executive director, so we need to work hard over the next three or four months to be in a good position, to talk to them, to be operating to say, look, maybe some of our staffing is no longer part of that capital campaign. Can you help us put the puzzle pieces together, programmatically help us find that community engagement and address some of those concerns in the neighborhood as an operating entity?” To help achieve needed funds, the six-person board of directors also plans to focus its search for an executive director who has community credibility, is intentional about providing empowering opportunities for neighborhood residents and can carry out the vision and mission of creating a world-class theater with a community lens. “So that person would obviously be part of the fundraising in front of the traditional community funders. We want somebody trusted with an authentic connection to the community here, because we think that’s gonna be critical to the vision becoming a reality,” Ringnalda said. Ringnalda has been intentional about working with neighborhood developers for the restoration of the space, which has an estimated capacity of approximately 1,000 people. To aid with architecture and design planning, Ringnalda has enlisted the firm of the man who first introduced him to the historic building, neighborhood architect Isaac V. Norris
Associates, located at Kalamazoo Avenue and Hall Street SE. Other contractors thus far include Monte Cristo Electric, and a joint venture between R and R Mechanical and Alternative Mechanical for plumbing and heating, and Pioneer Construction for some basic improvements. Shortly after an executive director is hired, the board plans to move forward with plans for an RFP process to hire a general contractor. Pending city and zoning ap-
provals, Ringnalda said the board is hopeful to achieve temporary occupancy of the space by April 2022. Programming for the venue still is being contemplated, and Ringnalda said he and the board are “all ears.” Suggestions have ranged from a community event space to hold a quinceanera for families and a coat or food drive for neighbors in need, to becoming a regional attraction by way of booking bands, comedians and other entertainment options.
“The programming (is) gonna take a long time to build out, but that’s the opportunity we have next year. Let’s get a gospel choir in here, let’s get a DJ, let’s do those things from this neighborhood, even,” he said. Ringnalda said he foresees proceeds from larger events being a catalyst for making smaller community events possible and said the board is intentional about providing incentives and finding ways to attract Burton
Heights residents to the space. “For events that we’re ticketing, we want to find our neighbors here and offer them discounts. We want to offer the venue up for rental to neighborhood businesses and other nonprofits at a discount. And again, we think we’ll be able to serve that well by mixing in, by getting people in here as frequently as possible. So, our board’s vision is very clear about maintaining that accessibility piece.”
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DECEMBER 13, 2021
GRAND RAPIDS BUSINESS JOURNAL
Treats maker takes pride in custom work Nursing Self-taught entrepreneur grows confections business from her home in Grand Rapids. Rachel Watson
rwatson@grbj.com
Many times, a business is born when someone sees a product and thinks, “I could improve on that.” Brandi Allaway’s homebased treats business falls into this category. Allaway, a Grand Rapids native with a background in marketing and title management, launched B.Creativ Confections in 2012 after attending a bridal expo with a friend’s mom and seeing a table containing candies in all different shapes and shades of blue. She turned to her friend and said, “That looks like something I could do, and if I could do it, it could be your wedding gift.” Sure enough, Allaway pulled off a similar table for that friend’s wedding, then shortly after, the bride’s cousin hired her, then Allaway’s sister, and the fledgling business took off through word of mouth and social media. Allaway has grown her homebased business under Michigan’s cottage law over the years and produces customized confec-
tions in a kitchen that’s in compliance with the Centers for Disease Control and Prevention’s COVID-19 safety policies and the National Restaurant Association’s ServSafe food handler certification. She specializes in custom dessert tables for events large and small across Michigan, with a range of treats including chocolate-covered fruit, pretzels, Rice Krispies treats and Oreos; candied and caramel apples; hot cocoa bombs; cake pops; chocolate-covered doughnuts; doughnut towers; and cheesecake shooters. Many of the clients she makes treats for have requested she work within a specific theme for baby showers, birthdays, bridal showers and weddings, so she bought a printer that uses edible ink so she can print edible designs and graphics directly onto the treats. After forays into sidelines like centerpieces, custom wine glasses, T-shirts and other merchandise, Allaway came to the conclusion in 2018 that she was spread too thin and wanted to return to her first love of treats and candy tables, which is what she has been doing with the business ever since. “There really was no way for me to make a profit, or even like invest in just one of those things, because I was doing so many different items for my customers. So, at that point, I decided to just
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Brandi Allaway uses edible ink in her printer so she can print edible designs and graphics directly onto the treats. Courtesy of Brandi Allaway
figure out which one was best for me, and which one I (was) in love with, and so I chose treats,” Allaway said. Allaway is 100% self-taught when it comes to making these creations, taking inspiration from Instagram and working out her process through years of trial and error. Recognizing she learned a lot from other creators, she is passionate about sharing her knowledge with her followers and therefore does occasional quick
Instagram tutorials and offers more in-depth, hands-on virtual and in-person classes for a fee. Allaway said she hopes to be able to go full time one day and establish a physical location once she gets to the point where the business is more regular yearround instead of seasonal. Those interested can book orders from Allaway and inquire about classes at bcreativconfections.com and follow her on social media at instagram.com/ bcreativc.
Michigan was on track to have a more than 5,000-nurse surplus by 2030 as proof that there are plenty of nurses, but that hospitals are causing them to leave their jobs. Brown, who also works as a critical care nurse at Ascension Borgess Hospital in Kalamazoo, said nurses are staying away from hospitals for safety concerns. “Evidence shows there are enough qualified nurses to fill needed positions,” Brown said. “However, unless there is a serious commitment to safe staffing, fewer and fewer nurses will continue to choose to work in these dangerous settings.” The Safe Patient Care Act was introduced in March and is a continuation of previous failed efforts. The legislation dealing with limits on forced overtime has 45 sponsors in the 110-member House. That’s 34 more cosponsors than it did the last time it was introduced in 2017. Brown said the problem cannot be put off any longer, and she hopes to see movement on the issue before the end of the term. “We are seeing this downward spiral happen in real time,” Brown said. “Michigan legislators need to address the problem. We don’t need Band-aids, we need substantive solutions.”
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50 Most Influential Women in West Michigan Celebration March 10th, 2022
GRAND RAPIDS BUSINESS JOURNAL
DECEMBER 13, 2021
Expert: ‘The Big Quit’ may curb mortgage eligibility CONTINUED FROM PAGE 1
An exception to this, he said, is if the person starting a business has a spouse or partner who makes a large enough salary to qualify for the home loan amount they’re looking for. “In a scenario where, let’s say both spouses were making $75,000 and they needed both incomes to qualify, and then one went self-employed, they wouldn’t qualify anymore, but in a scenario where you only needed one spouse to qualify, that would work,” he said.
“There are gaps in employment that make sense that are not a problem (such as someone going from one job to another); however, just one scenario — and I can point out a lot of them for you — is that for some folks who have decided to walk away from their current position and start their own business (selfemployment), it’s very much a big issue in terms of being able to get a mortgage.” David Hall
Quitting a job and going self-employed also would be a hurdle in qualifying for a Federal Housing Administration (FHA) loan or Veterans Affairs (VA) loan, Hall said. “With self-employment, in and of itself, the rules have gotten very stringent, so much so that some companies have decided to not to do self-employed loans anymore because they’re that difficult to do in today’s day and age,” Hall said. “What you’ll find, talking to self-employed business owners in general about most of their experiences with a mortgage over the past 12 months, is they’re probably pulling their hair out because it’s become very difficult.” Hall said the rules changed mostly due to the impact of COVID on small business revenues. “Past income was no longer as much of an indicator of future income for a restaurant or somebody who owned a fitness center, where there was a serious issue with that kind of business,” he said. “Other businesses did well, but typically, what you’ll find the regulators in the mortgage in-
dustry will do is obviously when there’s more risks, they get nervous, and so to the degree that you were self-employed during COVID, the rules got a little bit more difficult.” Those whose businesses are unaffected by COVID who want to get a home loan might be able to qualify, but they likely will need to provide more detailed financials to prove they are not a risk, Hall said. In 2022 and beyond, Hall is hopeful that the effects of the pandemic on businesses will ease, and mortgage loan guidelines will become less stringent. Hall said he understands many of the people leaving the workforce altogether are doing so out of necessity, due to child care shortages and health issues, but it’s important that the adult members of the household look at their financial picture, whether they already have a mortgage loan or would like to get a new one, to determine they can pay for what is likely to be any family’s largest expense by percentage of income. He said a change in employment also can affect households that would like to refinance an existing loan. “Let’s just say somebody is at 4% on their interest rate, and they want to refinance because they want to go to a 3%, or they want to take some cash out. If they change materially how much money they’re bringing in the household to the degree that they don’t qualify anymore, they’re not going to be able to refinance,” he said. “They’re going to continue to pay on that loan at 4%, instead of taking advantage of these record-low interest rates.” Hall advises the best way to prepare for changes in one’s borrowing or financing picture is to talk to a mortgage lender early, long before making changes, to understand the full impact. Hall Financial works with a network of real estate professionals, and they have seen in the past two years the biggest home appreciation numbers, percentagewise, in living memory. Hall said it’s generally recognized the 15%-20% growth in home values year over year will not be sustainable much longer, but it’s likely the market will continue along the lines of 3%8% appreciation over the next year or two. He said he doesn’t believe the current inflationary trend represents a bubble that will burst. “On the surface, just based on where housing values are, where the economy is now, where interest rates are, I’m not anticipating any type of a bubble,” Hall said. “At the same time, we don’t know what’s coming down the pike next, so we’ve just got to continue to keep our eye on it.”
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GRAND RAPIDS BUSINESS JOURNAL
DECEMBER 13, 2021
ACCOUNTING
Hungerford Nichols announced the election of shareholders Tessa Keena and Steve Triezenberg.
ADVERTISING & MARKETING
Kalamazoo-based LKF Marketing received a Gold Hermes Creative Award for a website it created for C2Dx, a medical device company also in Kalamazoo.
ASSOCIATIONS
Entrepreneurs’ Organization West Michigan, the local chapter of a global peer-to-peer network of 198 chapters in 61 countries representing more than 14,000 business owners, elected Wade Wyant as president for 2021-2022.
Torskiy joins Progressive AE with health care focus Architecture and engineering firm Progressive AE hired internationally distinguished architect Vlad Torskiy to lead its health care practice. Torskiy holds master’s degrees in architecture, health care administration, urban design and fine arts from institutions in Ukraine, Israel and the U.S. His portfolio of projects include the sprawling 1,383,000-gross-square-foot Manazel Medical City in Abu Dhabi, United Arab Emirates; an extremely complex and prominent 1,565,000-grosssquare-foot Ohio State Wexner Medical Center modernization; and integrated planning commissions with the U.S. Department of Veterans Affairs to improve care services and integrate facilities across multiple Veterans Integrated Services Networks and states.
AWARDS
The West Michigan Sustainable Business Forum announced the 2021 inductees to the West Michigan Sustainable Business Hall of Fame: Cascade Engineering Executive Vice President Kenyatta Brame and city of Grand Rapids Deputy City Manager Eric DeLong. South East Market co-founder Alita Kelly received the Future Hall of Fame Award.
BANKING
CU*Answers selected current President/COO Geoff Johnson to replace Randy Karnes as CEO.
Nehls Management School.
Honor Credit Union in Berrien Springs announced Dustin Nehls, VP of consumer lending, earned the Certified Credit Union Executive designation as a member of the 2021 graduating class of CUNA
Independent Bank has been recognized for the third year in a row by Mastercard in its annual Community Institution Segment Awards with an Innovation Award.
DEC 13-31 Mel Trotter Ministries Code Blue Drive. Collecting new or like-new winter items at MTM, 225 Commerce Ave. SW and partner organizations across West Michigan. Registration/information: meltrotter.org/events/codeblue. DEC 13 Muskegon Lakeshore Chamber of Commerce/Greater Muskegon Economic Development Let’s Talk Business Resource Team. Covering a range of topics to help small businesses and entrepreneurs get the tools needed to become successful business leaders. 11:45 a.m.-1 p.m., Muskegon Lakeshore Chamber of Commerce, 380 West Western Ave., Suite 202, Muskegon Registration/ information: muskegon.org/events-programs/chamber-events. DEC 14 Michigan West Coast Chamber of Commerce Wake Up West Coast In-Person and Livestream. Featuring Pamela Green, chief engagement officer, Pamela J. Green Solutions. Network and learn about best business practices. 8-9 a.m., Haworth Hotel, 225 College Ave., Holland. Cost: $35/members in person, $50/nonmembers in person, $10/members livestream, $20/nonmembers livestream. Registration/information: (616) 928-9101 or colleen@westcoastchamber.org. DEC 15 Grand Rapids Chamber of Commerce Hump Day Happy Hour. Build a sense of community between members and staff. Free beer and pizza. 4-5 p.m. Registration/ information: grandrapids.org/event/humpday-happy-hour-2/. DEC 16 Grand Rapids Chamber of Commerce Policy On Tap Zoom Meeting. Mingle with elected officials from across the
Lake Michigan Credit Union announced the addition of Katey Morse as treasury management officer.
Certified Human Resources Specialist certification from Michigan State University.
BUSINESS SERVICES
GRANTS
DK Security announced the promotion of Nancy Rhodes to vice president of human resources. Management Business Solutions recently celebrated its 15th anniversary. ODL Inc. announced Ron Woznick as its chief financial officer.
CONSTRUCTION
First Companies achieved Diamond Level in the Associated Builders and Contractor’s STEP Safety Management System.
EDUCATION
Jevon Willis has been named director of the Center for Diversity and Inclusion at Holland-based Hope College. Western Michigan University Cooley Law School has been ranked by U.S. News and World Report a top racially and ethnically diverse law school — 21 out of 199 American Bar Associationaccredited law schools.
FINANCIAL SERVICES
Greenleaf Trust human resources coordinator T’Ausia Bronson earned the
political spectrum over drinks and appetizers and get informed with a short update on a timely issue. 4:30-6 p.m. Cost: free/members, $25/nonmembers. Registration: information: bit.ly/ DecemberPolicyOnTap. DEC 16 Grand Rapids Chamber of Commerce Business Growth Series. Gain valuable resources and learn strategies necessary for small business practices. 8-10 a.m., Grand Rapids Chamber. Cost: $25/ members, $35/nonmembers. Registration/ information: grandrapids.org/event/business-growth-series-2021-12-16/. DEC 16 Grand Rapids Public Library/Mercy Health Program for People 65-Plus. Topic is Preventing and Managing Your Type II Diabetes and Heart Disease. 11 a.m., Main Library, 111 Library St. NE. Registration/ information: grpl.org/seniorsbewell. DEC 16 Grand Rapids Young Professionals Holiday Unwind Networking Event. 5:30-8 p.m., Rezervoir Lounge., 1418 Plainfield Ave. NE. Raffle prizes to benefit Feeding America West Michigan. Cost: $12. Registration/information: bit.ly/ GRYPHolidayUnwind. DEC 16 Hudsonville Area Chamber of Commerce Holiday Party. Noon-1 p.m., Pinnacle Center. Cost: free/first member representative, $15/additional members, $25/nonmembers. Registration/information: czuwala@hudsonville.og. DEC 16 Rotary Club of Grand Rapids Holiday Celebration Luncheon. Noon-1:15 p.m., University Club of Grand Rapids, 111 Lyon St. NW, Suite 1025. Registration/information: grrotary.org.
Daddy’s Dough is the recipient of a $4,000 second quarter 2021 Growth Grant from the National Association for the Self-Employed to help expand business operations. Daddy’s Dough makes homemade cookies from scratch locally but can ship them across the country.
HEALTH
Jenny P. Tsai, MD at Spectrum Health, has been elected a member of the 2021 board of directors for the Society of NeuroInterventional Surgery, a scientific and educational association dedicated to advancing the specialty of neurointerventional surgery.
HOSPITALITY
Kathleen Schiefler joined West Michigan Tourist Association as materials and marketing coordinator.
LEGAL
Bodman PLC announced five of its attorneys based in its Grand Rapids office are listed in The Best Lawyers in America 2022: Lindsay M. Cummings, Brian E. Kersey, Wayne D. Roberts, Matthew R. Smith and Carrie E. Trimpe. Roberts was also named the Best Lawyers in America 2022 Grand
DEC 16 St. Cecilia Music Center Concert. Featuring The Watkins Family Hour with special guest artist Courtney Hartman. 7 p.m., Hartman; 8 p.m., Watkins Family; St. Cecilia Music Center Royce Auditorium. Fully vaccinated status, or a negative COVID test taken within 48 hours required; mask required throughout concert. Cost: $45-$55. Registration/information: (616) 459-2224 or scmc-online.org. DEC 17, 18 Grand Rapids Public Museum Mighty Wurlitzer Theater Organ Holiday Classics Concerts. Performed by Dave Wickerham. Dec. 17, 7 p.m.; Dec. 18, 2 p.m. and 7 p.m.; GRPM Meijer Theater. In-person cost: $10/members, $15/nonmembers, virtual, $6/members, $10/nonmembers. Registration/information: grpm.org/Organ. DEC 20-30 Grand Rapids Public Museum Snowflake Break Camps. For kids first- through sixth-grade to enjoy engaging themed programs focused around science, history and culture during school breaks. Session options from 9 a.m.-noon or 1:304:30 p.m. Cost: $30/members, $40/nonmembers. Registration/information: grpm. org/educlasses. DEC 28 Wyoming Business Leaders Meeting. 8-9 a.m., Marge’s Donut Den, 1751 28th St. SW, Wyoming. Registration/information: (616) 261-4500 or d.kuba@instantcashmi.com. JAN 5 Hudsonville Area Chamber of Commerce Leads Group. A relationship-building group with the goal of establishing strong inter-business relationships to develop leads for the participating businesses. Noon-1 p.m., Hudsonville City Group. Cost: $50 per year,
CHANGE-UPS & CALENDAR
Rapids Lawyer of the Year for Tax Law. Attorney Erin M. Haney has joined the firm as an associate in the Grand Rapids office. Dickinson Wright PLLC announced Steve Glista has joined the firm’s Grand Rapids office as of counsel. Eleven attorneys from Foster Swift’s Grand Rapids office were selected by their peers for inclusion in The Best Lawyers in America 2022. Attorney Laura J. Genovich from Grand Rapids was named Lawyer of the Year and Leslie A. Dickinson, Julie L. Hamlet and Michael C. Zahrt were listed as Ones to Watch. Kirsten Holz, Kent County Office of the Defender district court chief, joined Levine & Levine Attorneys At Law, a Kalamazoobased law firm specializing in criminal defense, estate law, business law, real estate law and professional licensing defense.
Holz
Mika Meyers PLC announced five of its attorneys were named Lawyers of the Year by Best Lawyers in America: Douglas A. Donnell, environmental law; Elizabeth K. Bransdorfer, family law; John M. DeVries, oil and gas; Ross A. Leisman, municipal law; and Scott E. Dwyer, litigation-labor and employment. In addition, 26 of its attorneys were included in the 2022 edition of the Best Lawyers in America. Attorney Michael J. Huff was named Ones to Watch 2022. Plunkett Cooney attorney Michele Dunsky Adams was named to the Michigan Super Lawyers magazine list of 2021 Rising Stars. The Best Lawyers in America named 16 Barnes & Thornburg lawyers in the Grand Rapids office to its 2022 edition. Warner Norcross + Judd LLP had 24 attorneys recognized in the second
members only. Registration/information: bit.ly/LeadsGroup2022, czuwala@hudsonville.org. JAN 5 The Tucker Team at Keller Williams Realty Grand Rapids East Webinar. Topic is The Benefits and WealthBuilding Potential in Owning a Home, by Tucker team buyer specialist Will Schafer and Treadstone residential mortgage lender/co-founder Kevin Polakovich. 6-7 p.m. Registration/information: bit.ly/ TuckerHomeBuyerWebinar. JAN 10 The Economic Club of Grand Rapids Zoom Webinar. Featuring Democratic Congresswoman Debbie Dingell and Republican Congressman Fred Upton. Time: TBA. Registration/information: econclub.net/events-2/#. JAN 10 Wyoming-Kentwood Area Chamber of Commerce Government Matters Zoom Meeting with Elected Officials. Bring questions and interact with policy makers. 8-9 a.m. Registration/information: (616) 531-5990 or michelle@southkent.org. JAN 11 Dorothy A. Johnson Center for Philanthropy Virtual Workshop. Topic is Putting Competency Models to Work: Impacting Organizational Strategy and Assisting in Client Coaching. 1-2:30 p.m. Cost: free/current GVSU students, staff, faculty; $60/general admission. Registration/information: bit.ly/ CompetencyModelsWorkshop. JAN 11 Michigan West Coast Chamber of Commerce Economic Forecast Event. Featuring economist Paul Isely, Grand Valley State University, who will forecast local and state economies. 8-9
annual A Lawyer Helps Pro Bono Honor Roll, which recognizes both firms and individual attorneys who support access-to-justice efforts by providing pro bono legal services to low-income individuals and families throughout Michigan.
MANUFACTURING
DENSO named Santosh Singh vice president of human resources for North America.
MILILTARY
The U.S. Navy promoted a Calvin University graduate, Dean VanderLey, to the rank of rear admiral upper half. VanderLey assumed command as Commander, Naval Facilities Engineering Systems Command Pacific, and Fleet Civil Engineer, U.S. Pacific Fleet, and leads a team of more than 9,000 military and civilian personnel across seven Echelon IV commands and public works and construction offices in over 40 locations along the Pacific coast of the U.S. and across the entire Indo-Pacific theater.
NONPROFITS
Do More Good announced the addition of Tammy Charles, founder and chief strategist of Inovo Strategic Consulting, to its board of directors Gilda’s Club Grand Rapids announced leadership changes: Clare Portinga is now vice president of programming; Leigh Conard, vice president of finance and corporate operations; Shawn Campbell, vice president of development and engagement; Hannah Dayton, director of brand awareness and communications; Mitch Neubert, director of major gifts and corporate partnerships; and Zack Berends, events and festival manager.
CHANGE-UPS POLICY: The Business Journal welcomes submissions to the Change-Ups section. Send announcements concerning personnel changes, new businesses, changes of address etc. to Change-Ups Editor, Grand Rapids Business Journal, 401 Hall St. SW, Suite 331, Grand Rapids, MI 49503 or email bjchangeups@grbj.com.
a.m., Haworth Hotel, 225 College Ave., Holland. Cost: $40/members in-person, $55/nonmembers in-person, $15/members livestream, $25/nonmembers livestream. Registration/information: (616) 928-9101 or colleen@westcoastchamber. org. JAN 12 Dorothy A. Johnson Center for Philanthropy Virtual Workshop. Topic is Beyond Burnout: Redefining SelfCare In The Nonprofit Sector. 1-2:30 p.m. Cost: free/current GVSU students, staff, faculty; $60/general admission. Registration/information: bit.ly/ RedefiningSelf-CareWorkshop. JAN 19 Hudsonville Area Chamber of Commerce Leads Group. A relationship-building group with the goal of establishing strong inter-business relationships to develop leads for the participating businesses. Noon-1 p.m., Hudsonville City Group. Cost: $50 per year, members only. Registration/information: bit.ly/JanuaryLeadsGroup, czuwala@ hudsonville.org.
CALENDAR POLICY: The Business Journal welcomes submissions to the calendar section. Send items to Calendar Editor, Grand Rapids Business Journal, 401 Hall St. SW, Suite 331, Grand Rapids, MI 49503 or email bjcal endar@grbj.com. Submissions must be received at least three weeks prior to the event. The Business Journal calendar posted on the publication’s website (grbj.com) includes listings for events extended beyond those printed in the weekly publication that are limited by space restrictions.
PUBLIC RECORD MORTGAGES
Selected mortgages filed with Kent County Register of Deeds GRAND RAPIDS MULTIFAMLY, DST., Parkway Bank & Trust Co., Walker, $27,500,000 KRAEMER, Scott W. et al, Ruoff Mortgage Co., Cascade Twp., $496,345 YADAV, Prashant et al, Northpointe Bank, Algoma Twp., $368,000 LEJA, Christopher et al, Old National Bank, Ada Twp., $544,650 JMR PROPERTIES LLC, Grand River Bank, Cascade Twp., $2,100,000 DIVISION AVENUE PROPERTIES et al, Team One Credit Union, Wyoming, $4,500,000 JACKSON, Holly, Ruoff Mortgage Co., Parcel: 411424400094, $502,500 ZESSIN, John Jr. et al, Gold Star Morning Financial Group, East Grand Rapids, $510,000 BIDDLE, Ronald W. et al, Lake Michigan Credit Union, Cascade Twp., $444,500 NUNLEY, Jacob et al, Lake Michigan Credit Union, Plainfield Twp., $362,000 SUNDERLAND, Philip et al, Private Mortgage Wholesale, Cascade Twp., $466,500 HAWKS, Steven R. et al, Fifth Third Bank, Plainfield Twp., $438,000 MITCHELL, John B. et al, Lake Michigan Credit Union, East Grand Rapids, $589,000 SLANGER, Justin et al, Benchmark Mortgage, Oakfield Twp., $360,000 GROVER, Warren et al, Independent Bank, Cascade Twp., $755,50 KATTEYN, William C. Jr. et al, Heartland Home Mortgage, Byron Twp., $366,000 ROCKWELL, Douglas M. et al, Mercantile Bank, East Grand Rapids, $900,000 DILLON, Brandon, Neighborhood Loans, Parcel: 411429479009, $496,000 NIXON INVESTMENTS LLC, Lake Michigan Credit Union, Parcel: 411436455008, $496,444 JORDAN, David M. et al, Mid America Mortgage, East Grand Rapids, $482,500 HARMON, Mariel et al, Finance of America Mortgage, Parcel: 411720228040, $453,497 TIGERPHIL LLC, West Michigan Community Bank, Parcel: 411816201028, $525,000 OWENS, Nicholas C. et al, JPMorgan Chase Bank, Plainfield Twp., $379,299 REAME, Brent A. et al, Grand River Bank, Ada Twp., $780,000 TSAI, Calvin et al, Strong Home Mortgage LLC, Ada Twp., $574,000 NELSON, Timothy C. et al, Adventure Credit Union, Grattan Twp., $695,500 HUVER, Todd et al, Lake Michigan Credit Union, Algoma Twp., $548,000 BLOEMENDAAL, Colon J., Independent Bank, Plainfield Twp., $640,000 RABOURN, Rita et al, Lake Michigan Credit Union, Parcel: 411720426053, $359,910 SCHULTZ, David et al, Rocket Mortgage, Spencer Twp., $429,199 GLERUM, Jonathan et al, Keller Mortgage, Plainfield Twp., $499,450 GETTER, Richard L. et al, Lake Michigan Credit Union, Vergennes Twp., $834,000 RODRIGUEZ, Candido et al, MMS Mortgage Services, Solon Twp., $459,920 SHANILIAN, Leslie, Neighborhood Loans, Lowell, $351,500 WILLIS, Kaleb A. et al, Lake Michigan Credit Union, Cascade Twp., $378,000 HANSON, Brian et al, Independent Bank, Ada Twp., $440,000 VOSLER, Jared et al, Union Home Mortgage, Courtland Twp., $350,000 IDEMA, Christopher et al, Neighborhood Loans, East Grand Rapids, $413,250 HAGGADONE, Scott et al, Lake Michigan Credit Union, Courtland Twp., $396,000 BOLL, Sue, Macatawa Bank, Sparta, $1,087,500 LONGORIA, Justin et al, Rocket Mortgage, Byron Twp., $357,000 MANIAGI, Stephen J. II et al, Radius, Parcel: 411411202030, $446,000 MARCH, Lynn S. et al, Huntington National Bank, Ada Twp., $490,400 FEHSENFELD, Scott M. et al, United Bank, Cannon Twp., $548,250 BUI, Linda et al, Finance of America Mortgage, Byron Twp., $504,090 MOORE, Dennis et al, NCL LLC, Spencer Twp., $351,500 COFFMAN, Ann A. et al, Lake Michigan Credit Union, Byron Twp., $475,000 HARRIS, George M. et al, Fifth Third Bank, Byron Twp., $503,200 KORCEK, Daniel K. et al, Huntington National Bank, Cannon Twp., $444,900 MCMAHON, Patrick M. et al, Old National Bank, East Grand Rapids, $539,805 JTB HOMES LLC, Macatawa Bank, Caledonia, $355,647 WESSELL, Steven J. et al, 1st Source Bank, Cascade Twp., $440,000 VANHAGEN, Andrew et al, Grand River Bank, East Grand Rapids, $538,060 POST, Joseph et al, JPMorgan Chase Bank, Parcel: 411426376029, $424,000 GAVIN, James et al, Better Mortgage Corp., Plainfield Twp., $400,622 TARDIN, Caio M. et al, Lake Michigan Credit Union, Rockford, $356,250
GRAND RAPIDS BUSINESS JOURNAL DUNN, Thomas et al, Lake Michigan Credit Union, Kentwood, $409,600 CEBELAK, Robert et al, Veterans United Home Loans, Parcel: 411407227004, $350,000 ZLATANOVIC, Alija et al, JTB Homes, Cascade Twp., $356,986 MURPHY, Brandon P. et al, Independent Bank, East Grand Rapids, $548,250 MUNSON, Brandon W. et al, Union Home Mortgage, Algoma Twp., $522,500 TEMPLE, Ryan, Old National Bank, Gaines Twp., $370,500 PIROMARI, Hikmat et al, United Bank, Caledonia, $500,000 TURNER, Leanne et al, Mercantile Bank, Parcel: 411415100024, $718,000 TWESTEN, Bradley B., Northpointe Bank, Cascade Twp., $508,000 FORTUNA, Adam et al, Northpointe Bank, Cascade Twp., $475,950 GIBBS, Matthew M. et al, Independent Bank, Wyoming, $350,000 DARNELL, Cecil, Old National Bank, Cannon Twp., $508,860 WORMMEESTER, Randall et al, Inlanta Mortgage, Parcel: 411430252007, $356,250 LORDEN, Bradley et al, Lake Michigan Credit Union, East Grand Rapids, $756,500 MURILLO, Daniel D., Independent Bank, Parcel: 411821277069, $354,250 ZIEGLER, Aaron et al, Mercantile Bank, Plainfield Twp., $359,895 KLOOSTER, Jerry et al, Huntington National Bank, Gaines Twp., $632,000 TODD, Timothy et al, Consumers Credit Union, Plainfield Twp., $420,000 KUIPER, Thomas A. et al, Ruoff Mortgage Co., Cascade Twp., $487,000 ROPER, Daniel et al, Hometown Lenders, Plainfield Twp., $1,000,000 DOORN, Jessica et al, Mortgage 1, Cascade Twp., $352,500 MUILENBERG, Tim et al, Rocket Mortgage, Byron Twp., $502,550 OSTROWSKI, Ryan et al, Mercantile Bank, Cascade Twp., $615,000 GUAJARDO, Tony, United Wholesale Mortgage, Wyoming, $352,004 STEKETEE, Michael A., American Financial Network, East Grand Rapids, $352,400 JTB HOMES LLC, Macatawa Bank, Cascade Twp., $361,254 SARVER, Benjamin et al, United Wholesale Mortgage, Vergennes Twp., $628,906 FITZGERALD, Robert K., Mercantile Bank, Grattan Twp., $525,000 CHURCH, Michael et al, Lake Michigan Credit Union, Cannon Twp., $548,250 EHRHARDT, Randy M., Rocket Mortgage, Byron Twp., $440,000 VENEMA, Daniel L. et al, Hometown Lenders, Byron Twp., $516,200 BERRY, Daniel M. et al, Old National Bank, Algoma Twp., $517,896 HEBBUR, Shreedhar M. et al, Rocket Mortgage, Byron Twp., $356,000 OPPENHUIZEN, James R., Huntington National Bank, Parcel: 411807406022, $352,500 HOLLEMANS, Benjamin et al, Mortgage 1, Walker, $384,750 SMITH, Daniel K. et al, Mr. Cooper, Parcel: 411416326009, $382,000 RAMASMY, Arun et al, Lake Michigan Credit Union, Cannon Twp., $1,278,000 WALTERS TRUST, Huntington National Bank, Cascade Twp., $1,132,000 ASHACK, Kurt A. et al, Independent Bank, Byron Twp., $1,476,500 TORSKIY, Vladislav et al, Neighborhood Loans, Plainfield Twp., $496,000 SCHNAP LLC, Lake Michigan Credit Union, Parcel: 411802476029, $975,000 DURELL, Jonathan M. et al, MMS Mortgage Services, Cascade Twp., $364,000 LINCOLNHOL, Michael J. et al, Lake Michigan Credit Union, Grattan Twp., $405,000 LAMER, Todd et al, Consumers Credit Union, Byron Twp., $380,000 SHRESTHA-ASTUDILLO, Sunil K. et al, Benchmark Mortgage, Cannon Twp., $392,384 WYSOCKI, Leslie et al, Adventure Credit Union, Caledonia, $373,000 3785 DETROIT LLC, US Bank, Grandville, $1,765,000 DANG, Truc et al, MiMutural Mortgage, Gaines Twp., $404,700 BROUWER, Michael A. et al, Lake Michigan Credit Union, Walker, $374,044 BURNS, Charlotte et al, Neighborhood Loans, Parcel: 411429456017, $442,000 ROWLAND, Meghan et al, Neighborhood Loans, East Grand Rapids, $487,800 CHON, Sokai, Northern Mortgage Services, Kentwood, $368,000 MADISON APARTMENT HOME LLC, MSU Federal Credit Union, Parcel: 411431205014, $487,425 LEWIS, Taylor D. et al, Fifth Third Bank, Caledonia, $486,000 ARENDT, Benjamin et al, JTB Homes LLC, Plainfield Twp., $363,858 KASULA, Sunaina et al, United Wholesale Mortgage, Parcel: 411425480006, $414,000 BERENDS, Howard P. II et al, Success Mortgage Partners, Cannon Twp.,
$357,675 CHCONE, Michael M. et al, Wells Fargo Bank, Byron Twp., $384,750 VANTONGEREN, Mark A. et al, Arvest Bank, Plainfield Twp., $363,400 DEKLEINE, Jay, United Bank, Byron Twp., $616,887 BERGER, Bradley C. et al, Bank of America, East Grand Rapids, $608,500 MALIN, Zachary D. et al, Old National Bank, Plainfield Twp., $490,000 BGR INVESTMENTS LLC, First National Bank, Lowell, $423,079 SILVIS, Ryan D. et al, Team Mortgage Co., Cannon Twp., $350,000 TINOCO, Geovanna et al, Amerisave Mortgage Corp., Courtland Twp., $375,000 VANHOLSTYN, Joanne B. et al, Lake Michigan Credit Union, Oakfield Twp., $600,000 UDRY, Kay M. et al, ChoiceOne Bank, Cascade Twp., $538,000 DIVITA TRUST, Northpointe Bank, Ada Twp., $350,000 SWARTZ, Todd et al, Fifth Third Bank, Byron Twp., $457,600 EAGLE CREEK HOME LLC, Macatawa Bank, Byron Twp., $425,495 BAJRIC, Damir et al, Huntington National Bank, Wyoming, $360,000 GARCIA, Jerel et al, United Wholesale Mortgage, Byron Twp., $362,598 GRISWOLD, Drew P.., Independent Bank, Ada Twp., $498,845 MISSAD, Scott N. et al, Caliber Home Loan, Cascade Twp., $426,000 BUTER, Kristen et al, Rocket Mortgage, Parcel: 411810104010, $388,000 RIFE, Scott, United Wholesale Mortgage, Parcel: 412303480007, $353,000 DYKSTRA, Jeffrey et al, Lake Michigan Credit Union, Cannon Twp., $706,500 KELDERMAN, Joel D. et al, Ruoff Mortgage Co., Ada Twp., $374,800 BERGHUIS, Josh et al, Mercantile Bank, Walker, $532,815 MURPHY, Bethany J. et al, North American Savings Bank, Parcel: 411426353012, $408,000 KERR, Chadwick G., Crosscountry Mortgage, Cascade Twp., $412,500 MONTICELLO, Dale et al, United Wholesale Mortgage, Ada Twp., $377,600 THAKUR, Manish et al, Rocket Mortgage, Ada Twp., $495,240 OTTE, Joel D. et al, Lake Michigan Credit Union, Caledonia, $675,000 MCKINNEY, Matthew et al, Benchmark Mortgage, East Grand Rapids, $428,934 TURNER, Arnett Jr. et al, Veteran United Home Loans, Lowell, $366,234 DOLCI, Vito et al, Fifth Third Bank, Walker, $432,850 HAMMER, Nicholas J. et al, Lake Michigan Credit Union, Lowell, $392,400 VANDERWALL, James W. et al, Huntington National Bank, Lowell, $416,000 KRAAI, James L. et al, Home Point Financial, Cascade Twp., $356,500 ALBIN, Rickey H. II et al, Fifth Third Bank, Parcel: 411132253014, $415,000 RODRIGUEZ-GARZA, Albesa et al, Independent Bank, Wyoming, $451,250 SPANBAUER, Scott T. et al, Reicentral LLC, Grattan Twp., $537,000 VANDERJAGT, Gabriel P. et al, Primelending, Algoma Twp., $432,000 NOORDELOOS, Justin et al, Lake Michigan Credit Union, Cannon Twp., $536,750 BEER, Jonathan K. et al, PNC Bank, Cascade Twp., $408,500 SCHAEFER, Jordan et al, Lake Michigan Credit Union, Cascade Twp., $374,000 KANTOR, Mitchell et al, Lake Michigan Credit Union, Parcel: 411324453200. $404,000 HALES, Thomas et al, Team Mortgage Co., Plainfield Twp., $548,250 MCKENNA, Peter et al, JPMorgan Chase Bank, Gaines Twp., $394,250 SANDERSON, William Jr. et al, Independent Bank, Cascade Twp., $352,500 BORG, Meredith et al, Independent Bank, Byron Twp., $488,000 JAECKLE, Paul et al, PNC Bank, Caledonia, $398,000 KONWINSKI, Ryan et al, Sofi Lending, Ada Twp., $548,000 CE REAL ESTATE LLC, Union Bank, Plainfield Twp., $680,000 ATKINS, Michael, Neighborhood Loans, Vergennes Twp., $419,200 DANG, William et al, JPMorgan Chase Bank, Wyoming, $370,000 OSMANOVIC, Alen, Neighborhood Loans, Byron Twp., $548,250 GEFFERT, Joseph A. et al, Lake Michigan Credit Union, Lowell, $548,250 STULTS, David W. et al, Commercial Bank, Walker, $671,500 RUSH, Adam J. et al, Commercial Bank, Parcel: 411513100034, $460,500
PUBLIC RECORD AVAILABLE ONLINE: For the full version of this week’s Public Record, visit the Grand Rapids Business Journal’s website at grbj.com.
DECEMBER 13, 2021
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Medicaid proposal would integrate mental, physical care Plan includes allowing private insurers to cover behavioral health needs. Cameryn Cass
Capital News Service
LANSING — Michigan lawmakers are considering integrating mental and physical health care to make it more affordable, accessible and dependable for the state’s poorest citizens. The proposal builds on Medicaid programs and has been the subject of two recent state Senate hearings. Medicaid treatment today separates physical and mental health, making it challenging for patients to get proper treatment as they’re unable to receive care by one professional. Advocates want to reduce the stigma of receiving mental health treatment and increase follow-up treatments. But critics worry that allowing private health insurers to provide services will channel some of Michigan’s $3 billion Medicaid mental health budget into the pockets of for-profit businesses. Still, supporters of the legislation say they are encouraged. “I have never before seen so much interest in a bipartisan manner at addressing behavioral health needs of our population than right now,” said Dominick Pallone, the executive director of the Michigan Association of Health Plans. “I think the pandemic has catalyzed policymakers around recognizing the need for major reforms and major improvements for behavioral health services.” Similar measures have been adopted by 33 other states. The idea is to revamp the mental health code to maximize services for the Medicaid-qualified population, as most people with private insurance already receive this integrated care, said Sen. Mike Shirkey, R-Clarklake, a cosponsor of the bill. “It’s a systematic problem. “A substantial amount of costs and problems associated with physical health (for those on Medicaid) are directly related to this mismanagement of mental health.” Integrating care would bring all services under one roof, making the system much easier to navigate. “People wouldn’t have to be ping-ponged between systems,” Jim Haveman, the former director of the Michigan Department of Community Health who helped write the code in 1995, said in a phone interview. But Tom Watkins, a former director of the state mental
health department, said it’s a misnomer to call the bill integrated care. “What it is, is transferring $3 billion of public money to private, oftentimes profit-making companies,” Watkins said in a phone interview. “We should be focused on service for people, not profit for company.” The reality is, public health care already is sponsored by private companies, said Shirkey. “I categorically reject the straw man argument on private businesses,” said Shirkey. “It is already prominent in how we deliver health care, even in the public sector.” Privatization is not the only concern. Community mental health agencies oppose the proposed legislation and instead recommend focusing on funding certified community behavioral health clinics. Funding such services would open up the same services to all constituents, regardless of Medicaid or insurance status, said Julia Rupp, the CEO of HealthWest, the community mental health program in Muskegon County. “The answer is not financial integration,” Rupp said at a recent Senate committee hearing. “I thought it was.” HealthWest was one of three pilot projects around Michigan participating in the Section 298 program, which was a trial run for integrated mental and physical health care in 2018. This, however, was publicly funded financial integration, where Shirkey’s bills allow private companies. People agree the system needs to be fixed to better serve Michigan residents, and the focus needs to be on healing the whole person, true integration, said Lisa Williams, the CEO of West Michigan Community Mental Health. Yet, there’s nothing in the bills to limit community mental health services, Pallone said. All they’re doing is bringing in private companies, which must contract with community mental health, to compete. Not in terms of money, but in terms of care. “We don’t want to do anything to exclude community mental health, but we want to give people the ability to choose if they don’t like their provider,” said Pallone. The goal of these bills is integration, but advocates are really looking to better serve mental health patients on Medicaid. “We don’t see mental health as a disease, we see it as a carveout from health care,” Haveman said. “Mental health is a disease, and we need to treat it as so.”
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GRAND RAPIDS BUSINESS JOURNAL
DECEMBER 13, 2021
Being good neighbors Holiday presence.
T
he West Michigan Hispanic Chamber of Commerce is on the receiving end of $150,000 in grant funding from Bank of America. The chamber was recognized last week as a 2021 Neighborhood Champion, a honor that includes both grant funding and executive leadership development. As part of the program, the WMHCC will receive a $50,000 two-year grant and an opportunity for engagement in executive leadership coaching delivered by national experts in the nonprofit sector on topics like human capital management, increasing financial sustainability and strategic storytelling. In 2019, in order to scale funding and expertise to more communities, the bank introduced the Neighborhood Champions program, which supports the role strong nonprofit leaders play in advancing economic mobility. While the Neighborhood Builders program is designed to support 100 major and metro markets, Neighborhood Champions was established to support 42 suburban markets and smaller communities across the U.S. The Neighborhood Champions program is invitation-only for nonprofits that are poised to take their work to the next level. Leading members of the commu-
BUSINESS JOURNAL STAFF
nity participated in a collaborative selection process to identify this year’s awardee. “We are tremendously grateful for the ongoing support and meaningful partnership with Bank of America,” said WMHCC President and CEO Guillermo Cisneros. “The pandemic has already created numerous challenges for small businesses, which is only further complicated by the inequities that are oftentimes experienced by minority entrepreneurs. The wonderful grant support, including valuable leadership training afforded through the Neighborhood Champions program, will allow us to further assist in the professional growth and economic advancement of Hispanic-owned businesses and leaders in our community.” Since 2004, through its Neighborhood Builders and Neighborhood Champions programs, Bank of America has invested more than $285 million in 92 communities across the U.S., partnered with more than 1,400 nonprofits, and helped more than 2,800 nonprofit leaders strengthen their leadership skills. In addition, the bank has awarded WMHCC a $100,000 grant to further advance economic opportunity for Hispanic-owned small businesses that will enable
them to develop a strong Latino talent pipeline and create employment opportunities. Funding will be in support of two key chamber initiatives that include Transformando West Michigan and Building Bridges through Education (BBTE). Transformando is a business training program that aims to help business owners achieve a new level of financial mobility, prosperity and stability. It provides small business owners with resources, educational programs and networking opportunities to help them grow their business. BBTE, a 2021 Examples of Excelencia finalist, helps prepare and connect high-potential Latinx college students with the tools and opportunities to reach their career goals. It also educates and encourages businesses to invest in their community by creating jobs and internship opportunities. “Bank of America strives to help local economies prosper by supporting business ownership to create sustainable, financially healthy and diverse communities,” said Renee Tabben, president, Bank of America Grand Rapids. “The West Michigan Hispanic Chamber has provided critical leadership in our community helping businesses, individuals and families create a path toward
economic opportunity and stability. We are excited to name them a Neighborhood Champion and provide additional grants to support Latinx college students and give Hispanic small businesses many of the tools they need to succeed.” ‘TIS THE SEASON The 2021 holiday season appears to be on track to exceed the National Retail Federation’s forecast for record spending despite supply chain disruptions, inflation and challenges like the new COVID-19 omicron variant, NRF Chief Economist Jack Kleinhenz said. “Now that we’re in December, the holiday shopping season is nearing the finish line,” Kleinhenz said. “The question is how have factors ranging from economic indicators to the twists of the COVID-19 pandemic affected the season so far, and what role will they play in the (days) that remain? There’s no crystal ball to provide a definitive answer, but the latest data is encouraging and provides useful insights. In fact, the season could turn out even better than we expected.” Kleinhenz’s remarks came in the December issue of NRF’s Monthly Economic Review, which said holiday retail sales during November and December could now grow as much as 11.5% over the same period in 2020. That would exceed NRF’s forecast that holiday sales would be up between 8.5% and 10.5%. Many consumers started holiday shopping earlier than ever this year because of concerns over supply chain disruptions, he said.
STREET TALK “The holiday season clearly looks to be off to a good start,” Kleinhenz said. “Consumers remain in solid financial shape and do not appear to be stretched.” One red flag might be the COVID-19 omicron variant, but Kleinhenz said it is too early to predict what impact it will have. The first official holiday results won’t be known until the Census Bureau reports November sales on Dec. 15. But overall consumer spending — beyond just retail sales — rose by 1.3% in October, the largest monthly increase since March, and “there was no evidence of a pullback” despite prices increases that have come with inflation caused by supply chain disruptions and increased demand. Over the past year, disposable personal income has been up 4.1% and spending has increased 12%. Initial unemployment claims fell to their lowest level since 1969 the weekend before Thanksgiving, and 546,000 jobs were added to payrolls in October, followed by another 210,000 in November, according to the NRF. In addition, the November unemployment rate fell to a new pandemic low of 4.2%. Continued strong growth rates will reduce the 4.2 million jobs needed to return employment to pre-pandemic levels, Kleinhenz said. The increased retail sales and strong economic indicators come despite falling consumer confidence. The University of Michigan Index of Consumer Sentiment declined to 67.4 in November, its lowest level in a decade, but Kleinhenz said spending data is a more relevant measure of consumer behavior.
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Tear out this page on the dotted line.
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Stuff page into the sleeve of coat or jacket.
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Stay warm this Christmas.
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This holiday season, we need your help to provide shelter, safety and a path to recovery. Your support is truly saving lives. Give securely online at GuidingLightWorks.org/Give.
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