GLBM May 2017 by M3 Group Publications

MAY 2017

JOHN GRETTENBERGER A behind the scenes look at manufacturing & distribution

IN THIS ISSUE •

A LOOK INTO LANSING’S CONSTANTLY EVOLVING MANUFACTURING INDUSTRY

•

E-COMMERCE PLACES BRICK & MORTAR STORES ON THE ROPES

•

NEED FOR SKILLED LABOR AT ALL-TIME HIGH

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G R E AT E R

L A N S I N G

BUSINESS MONTHLY

Beth Thelen (left), Director of Technical Services, Carl Thelen, Vice President, Laura Perniciaro, Business Manager and John Grettenberger, President and CEO of LorAnn Oils

MAY 2017 ON THE COVER E-commerce places brick & mortar stores on the ropes.............................................................................10 Need for skilled labor at all-time high.......................................16 A look into Lansing’s constantly evolving manufacturing industry....................................................................20 John Grettenberger...........................................................................28

NEWS Michigan’s thriving agriculture industry....................................6 Local United Ways merge.................................................................. 8 Don’t be left in the dark....................................................................12

MAY 2017

FEATURE

Commentary.................................................................................................................................................. 4 It’s more than a living, it’s a life.......................................................................................................... 14 Manufacturing essential to region’s diversified economy................................................... 18 Visual Breakdown..................................................................................................................................... 24 Economy........................................................................................................................................................ 26 Legislative Corner.................................................................................................................................... 30

JOHN GRETTENBERGER A behind the scenes look at manufacturing & distribution

Real Estate................................................................................................................................................... 32 Greater Lansing at a Glance................................................................................................................ 34 Business Calendar.................................................................................................................................... 36

IN THIS ISSUE •

A LOOK INTO LANSING’S CONSTANTLY EVOLVING MANUFACTURING INDUSTRY

•

E-COMMERCE PLACES BRICK & MORTAR STORES ON THE ROPES

•

NEED FOR SKILLED LABOR AT ALL-TIME HIGH

Cover photography by Erika Hodges

Notable News............................................................................................................................................. 38

CORRECTION In the April 2017 issue of Greater Lansing Business Monthly the headline, “Auto-Owners Insurance: A Commitment to Outstanding Service Since 1957,” mistakenly implied the organization has only been in the area for 60 years, when in fact they were founded in 1916.

Greater Lansing Business Monthly | Volume 30, Issue 5

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Greater Lansing Business Monthly is published monthly by M3 Group at 614 Seymour Street, Lansing, MI 48933. Periodicals postage paid at Lansing, Michigan USPO. USPS number 020w807.

Subscriptions: Subscriptions are available at $22 per year for postage and handling or $38 for two years. Call (517) 203-0123 or visit lansingbusinessnews.com to subscribe. Postmaster: Send address changes to The Greater Lansing Business Monthly, 614 Seymour Ave., Lansing, MI 48933. Send additional subscription requests and address changes to The Greater Lansing Business Monthly, Inc., 614 Seymour Street, Lansing, MI 48933. Copyright © 2016 The Greater Lansing Business Monthly, Inc. All rights reserved. Editorial Office: 614 Seymour Street, Lansing, MI 48933 lansingbusinessnews.com 2

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COMMENTARY

G R E AT E R

L A N S I N G

BUSINESS MONTHLY

Publisher: Tiffany Dowling tiffany@m3group.biz Sales Manager: Jennifer Hodges jhodges@m3group.biz Editor: Kelly Mazurkiewicz kelly@m3group.biz Media Manager: Jill Bailey Account Managers: Austin Ashley Megan Fleming Manny Garcia Art Director: Mark Warner Communications Director: Ami Iceman-Haueter Graphic Designers: Angela Carlone

MAKERS, MANUFACTURERS &

MAKING MOVES S

hopping is a part of everyone’s life. You may not be the ultimate browser, who spends hours roaming aisles or making lists for quality or price comparisons, but we all buy items we need. The landscape of shopping has changed. Some of us are thrilled with couch shopping and some of us are not. I would say most of us are hybrids who do both. I’m a textile type person, so I love to go to the brick and mortar store and hold the products I’m buying. I like to read labels and touch fabrics. I like the thrill of the hunt. I also enjoy saving time occasionally and purchase items online. The problem I have with online shopping is that no matter how easy the retailer makes it, I never seem to get the item back in the box for returns. So, I end up storing items that I do not like or want. Eventually I give these things away – brand new. I’m also a fan of shopping locally. As an entrepreneur, it breaks my heart to see businesses go under. I am a fan of business – big or small. Any time something goes away, I know someone lost a place to get needed goods, a person may no longer be employed and there is blight in a community through a potentially boarded up building. It isn’t easy to ride a wave of change. A lot of companies wait too long to change their model or believe in the status quo and do not get enough research done to see how their business should respond to market shifts.

Kerry Hidlay Nikki Nicolaou Photographer: Erika Hodges Web Manager: Skylar Kohagen Event Calendar Manager: Jaime Hardesty

GLBM Editorial Board: April Clobes — President and CEO, MSU Federal Credit Union Calvin Jones — Government Relations Director, Lansing Board of Water & Light Lisa Parker — Director of Alumni Career and Business Services, Michigan State University Alumni Association

No one has a crystal ball to see the future, but every business owner should be keeping up with the trends of how people are buying and reading about how the customers of tomorrow will buy. I’m excited to see how indoor retail malls are leaning into the change. Before you know it, the mall where you used to walk around looking for new tennis shoes, will be the place you go as a nonprofit hub or series of small museums. The interesting part is the middle stage with a juxtaposition of differing occupants. Manufacturing has been on a winding road for some time. It struggles with perception issues, changes in technology, outsourcing, insourcing and the list goes on. The beautiful thing about Lansing’s manufacturing community is that you get organizations that are local gems, like LorAnn Oils. It’s a small manufacturing company that is producing a product that individuals all over the world love, made right here in our community. Lansing is a great maker town, and that’s what makes Lansing great.

Deb Muchmore — Partner, Kandler Reed Khoury & Muchmore Tom Ruis — Vice President, Fifth Third Bank Doug Klein — Executive Director, Mason Area Chamber of Commerce

Tiffany Dowling | Publisher

Mark Hooper — Partner, Andrews Hopper Pavlik Diontrae Hayes — Supervisor Charter Township of Lansing

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MICHIGAN’S THRIVING

AGRICULTURE

INDUSTRY BY SARAH SPOHN

There are 52,000 farmers scattered across the state, providing an abundance of various crops, creating a thriving agriculture industry in Michigan. Kate Thiel, crop specialist for Michigan Farm Bureau, spoke about the state’s agricultural opportunities. “It’s important to understand that we’re the second most agriculturally diverse state in the nation, second only to California,” she said. During the 2017 State of the State address, Governor Snyder cited farmers as providing

food and fiber throughout the 10 million farmland acres. The agricultural industry contributes $101.2 billion to Michigan’s economy annually. Agriculture, crop and product-processing and related businesses make up a large portion of the mitten’s jobs, employing 923,000 people — about 22 percent of the state’s population. Michigan ranks in the top 10 in the nation for different crop commodities, including dry beans, cherries, blueberries, cucumbers,

The agricultural industry contributes

$101.2 BILLION

to Michigan’s economy annually 6

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sugar beets, beef, Christmas trees, dairy, wheat and corn. Kevin Robson, horticulture specialist at Michigan Farm Bureau, spoke about one of the state’s most popular fruit crops, apples. “In Michigan, we’re home to 35,000 to 36,000 acres of apple trees. A lot of [apples] get sold fresh, but an overwhelming majority of them, more than half, are sold into the processing market,” he said. “So, they get processed and

Agriculture employs

923,000 Michigan people

NEWS

turned into things like apple juice, apple sauce and apple slices.” These value-added products, including food companies like baby food giant Gerber, carrot processing plants in the West-Central regions, potato chip processing companies like Better Made, Great Lakes and Frito-Lay come together to form a $101 billion industry. “It’s all those different commodities that create a product, then that product gets sold, and that adds value to the industry,” Robson said. Thiel works with specific commodity groups like corn, soybeans, wheat, dry beans and sugar beets within her job at Michigan Farm Bureau. Her role also includes specialized biotechnology and bioenergy fields, utilizing and studying drone usage and ensuring Farm Bureau members are aware of legislative policies affecting their crops and farms. Michigan ranks number one for black beans and small red beans, but fell to North Dakota as the number one producer of all dry beans in the nation. With varying temperatures across the state, including different patterns depending on whether you’re growing crops in the Upper Peninsula versus the Lower Peninsula, allow for a greater variety of crops to come out of Michigan. Technology as well as weather play huge roles and impacts on crops and commodity groups. “A lot of our producers in both the Lower and Upper Peninsulas produce corn, soybeans and wheat,” Thiel said. “It’s amazing how technology has evolved and the weather has sort of evolved over time as well, what we can grow in our Upper Peninsula and in the northern portion of the Lower Peninsula based on the number of growing days available.” Approaching the planting season for sugar beets, there are some farmers in the thumb, places like Montcalm and Gratiot County, getting ready for the upswing in production. We’re also approaching the planting season for corn and soybeans. According to Thiel, it’s hard to predict around the beginning of springtime just what will shake out long-term in terms of harvest. Another one of Michigan’s popular crops is wheat, typically planted in the fall. “For the most part, we grow winter wheat here in the state of Michigan, so it would have grown dormant,” Thiel said. “There’s been

some concern about the fact that we had a rather light winter, it didn’t get cold until late, and it didn’t stay very cold, so that can affect the dormancy of the wheat itself.” Because our weather isn’t as predictable as other states, Mother Nature plays a significant role in commodities, pricing and availability.

According to USDA’s National Agricultural Statistics Service

“That’s both a hindrance and a blessing because the Great Lakes sit around us,” she said, “as well as those weather patterns allow us to be the second most agriculturally diverse.” The USDA released their projected planning acreage report on Friday, March 31, which predicts what farmers are going to plant. Data is gathered from farmers directly, however, the projections leave room for error in terms of weather or potential natural disasters which impact the fluctuating commodity market.

MICHIGAN'S SOYBEAN acreage is expected to be up

14%

According to the USDA’s National Agricultural Statistics Service (NASS) report, the state’s soybean acreage is expected to be up 14 percent, which is two times the U.S. increase. For 2017, the estimated 89.5 million acres of soybeans planted is up 7 percent from the previous year. Estimates for the corn planting outlook are down in Michigan 4 percent from 2016 and are expected to be down or remain unchanged in 38 states. Wheat acres are also estimated to be down 8 percent, the lowest nationwide acreage since 1919. Overall though, Thiel has high hopes for the upcoming seasons.

the estimated

89.5 MILLION acres of soybeans planted increased

“I’m hoping things continue to warm up and maybe precipitation will slow down just a touch so that as we come into the planting season here, folks can have a great spring — which sets us up for a great growing season this summer, and a great harvest season this coming fall.”

from 2016

Given the uncertainty, farmers are the ultimate risk takers, if you ask Thiel. “No two years are the same,” she said. “Farmers are great entrepreneurs for a reason. They do a great job rolling with the punches as things shake up throughout the year.” Sarah Spohn received her degree in Journalism from Lansing Community College. She’s a concert junkie; living and breathing in both the local and national music scene. She is proud to call Lansing her home, finding a new reason every day to be smitten with the mitten.

MICHIGAN'S CORN planting is down by

from 2016 L

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LOCAL UNITED WAYS MERGE Capital Area United Way’s regional strategy is a win for tri-county residents BY KRISTINE RICHMOND

Two well-established United Ways in midMichigan consolidated operations, effective April 1, to improve the wellbeing of individuals and families in the tri-county region. The boards of directors of Capital Area United Way (CAUW) and Eaton County United Way (ECUW) voted to merge on March 21, 2017. The combined entity will use the existing name “Capital Area United Way” and will serve the entire geographic region of Eaton, Clinton and Ingham counties. At a press conference on March 22 announcing the news, CAUW Board Chair, Dorothy E. Maxwell, shared the importance of the merger to the region, especially with the two organizations so firmly rooted in mid-Michigan. ECUW has served the lower southwestern corner of Eaton County for 40 years, while the CAUW has served Lansing and the rest of the tri-county area for the past 98 years. “Since the mid-2000s, the two United Ways shared ideas and resources and have entertained discussions about merging but 8

“The Lansing region has unique assets that allow us to compete on a global stage. We have a Big Ten university, we are the capital city, we have Fortune 500 companies ... Making all of these connections from the United Way in the fabric of our community, right through to economic development, up to politics, all has to work better together.” Bob Tresize, president and CEO of the Lansing Economic Area Partnership the timing was not right. Finally, in the last six months, our boards have been planning together this merger and have reached this milestone,” said Maxwell. Last fall, CAUW’s President and CEO, Teresa Kmetz was having a conversation with ECUW’s Executive Director, Joni Risner; during which she indicated that their board may be willing to engage in a conversation about consolidation. The two organizations quickly put together a consolidation committee that included two board members from each

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board, as well as the two executives who then worked through a number of issues. “We had the good fortune of having David Donovan, a management consultant with the Donovan Company, facilitate the merger, which was seamless and good for all parties,” said Kmetz. “While the two boards quickly found this was the route to go, we wanted to take more time to bring along our community partners.” United Way generally promotes the collaboration of local resources as a best

NEWS

practice in nonprofit effectiveness and this consolidation demonstrates a commitment to that philosophy. Bob Tresize, president and CEO of the Lansing Economic Area Partnership, added during the event, “how this merger strengthens the whole capital area, as we put people first.” Tresize emphasized that many sectors in the tri-county have demonstrated significant success with a coordinated, regional approach in recent years, including economic development, business, arts and culture, health care and even education. “The Lansing region has unique assets that allow us to compete on a global stage,” said Tresize. “We have a Big Ten university, we are the capital city, we have Fortune 500 companies. We are positioned to soar and do great in that global economy. Our diversity is a major asset for us. We speak 60 languages and, I believe, we are the fourth largest refugee center in America. Making all of these connections from the United Way in the fabric of our community, right through to economic development, up to politics, all has to work better together.”

Among the many benefits to residents and the community, a combined CAUW will provide a single grant-making process for funding programs that demonstrate the ability to solve key community issues identified by the United Way. Additionally, corporate and individual investors will have a single, streamlined fundraising organization, a robust Volunteer Center and more focused opportunities to engage the local communities.

“The region will have a United Way connection available at most community functions, meetings and events in the outlying areas,” said Risner. “It will be exciting for the programs and agencies that serve our vulnerable populations because they’ll have someone in their space all the time. We want to make sure every person in the tri-county area has the resources available they need. We all recognize that our rural areas need as much or more assistance than within the urban areas.”

“We’ll have a lot more opportunities in the outlying areas of Eaton County and southern Ingham County because we are able to have a staff member focused on community engagement, which will be Joni Risner,” explained Kmetz. “Her sole focus will be working to help connect the United Way to local communities, helping the United Way learn about what’s happening on the ground in these areas while promoting volunteerism and making sure that everyone knows about and utilizes our 2-1-1 helpline.”

The new board of directors will include representatives from both organizations and will refine its strategic focus based on tri-county data, individual surveys and dozens of community conversations as mentioned in the organization’s press release announcing the merger. Specific goals are expected to be announced in spring 2017 and will determine the focus of CAUW’s future initiatives and funding.

As of April 1, Risner’s new title will be vice president of community outreach and Engagement for the CAUW. She will continue working out of the ECUW’s current Charlotte office, in addition to the Lansing-based location.

Kristine Richmond is the Public Relations Specialist at M3 Group. She specializes in helping clients tell their stories of changed lives, fiscal success, philanthropic support and more by creating engaging messages that grab customers’ attention and cause them to act.

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, S T S R U B E L B B U B L I A T E R E H T N E WH E D I S U O Y L L I W WITH WHOM n the ropes o s re o st r a rt o m d n a rick merce places b

om The convenience of E-c

BY ADAM LANSDELL

Keep your friends close and your enemies closer — it’s what you’ve always known and it’s a fundamental statement that’s defined the axis of business for centuries. Yet from the perspective of a consumer, what can be done when your friend is also the enemy of your local economy? This is the case in the current market regarding the way that consumers are spending, and there’s one brand in particular that sits in the grey areas of our minds when consciously selecting where to buy anything from toothpaste to new tires – Amazon and others like it. The king of convenience is a best friend to many. While the simplicity of clicking a button and having the product arrive on your doorstep two days later is a gift from above for consumers, it’s hell on earth for competition that have relied on the traditional model of brick and mortar storefronts throughout their entire existence. Suffice it to say, they’re the consumers’ friend, but the competitors’ enemy – large online retailers are taking that familiar phrase and transitioning it in its favor – keeping you closer than ever before. With innovations constantly being added to its already crushing suite of features included under their Prime Membership, the Amazon brand is focused on not just becoming your first place to shop, but a piece of your daily life. In an effort to catapult the brand further into the stratosphere of 10

convenience-based sales, Amazon is integrating this idea into users’ homes through automated purchasing software and digital assistance with the Alexa enabled Echo lineup; which allows you to do anything from ask how many pieces of Captain Crunch it would take to measure the circumference of the moon to ordering a movie to broadcast directly to your TV. It’s the idea of making these small integrations into the average consumer’s daily lives extremely accessible that has allowed large online sources to place the retail market in a chokehold. Other major retailers have positioned their business model to offer a similar sense of convenience, but as the market suggests, this isn’t causing Amazon to pump the breaks. Amazon has dominated consumerism, extending its reach to every facet of product imaginable. If there’s something you need, you’ll find it. The idea of having everything readily available in one spot was the foundation of large brick and mortar brands such as Walmart. In a response to Amazon’s overbearing business model, Walmart launched its own two-day shipping services in June 2016. However, the paid service that required a $49 annual fee did little to lure consumers back to the brand. As brick and mortar stores scurried to make their brands more recognizable – they may have missed the bigger picture of things.

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“Retail square feet per capita in the United States is more than six times that of Europe or Japan. And this doesn’t count digital commerce,” said Richard Hayne, CEO of Urban Outfitters during an earning and analyst call in March. “Our industry, not unlike the housing industry, saw too much square footage capacity added in the 1990s and early 2000s. Thousands of new doors opened and rents soared. This created a bubble, and like housing, that bubble has now burst. We are seeing the results: doors shuttering and rents retreating. This trend will continue for the foreseeable future and may even accelerate.” Unable to compete with Internet giants, many companies were left standing on their last leg. Many big name companies filed for bankruptcy or shut down hundreds of stores nationwide. Notable brands undergoing closures of hundreds of stores include The Children’s Place, which had closed nearly 300 stores since 2015; Walgreens, which closed nearly 1,000 locations shortly after merging with Rite Aid; Sports Authority, which filed for bankruptcy in 2016 and has closed 140 of its 450 locations; Sears Holdings, which has closed nearly 80 of its stores; Macy’s, which recently closed nearly 100 locations and JC Penney, who just this March announced the closure of 138 stores nationwide. As in-store sales continue to fall, businesses are also forced to cut ties with a massive number of

NEWS

employees. Macy’s, for example, cut nearly 6,200 positons alone during its initial closing of 68 stores in January. The aftermath of store closings can leave a lasting effect on local job markets and create a tension amongst the newly unemployed, who typically are given short notice prior to the closing of their given location. Internet retailers are responsible for is the displacement of many workers across the world. So far, 2017 has brought Lansing the closures of JC Penney, Macy’s, Family Christian Stores, Radio Shack, Kmart, Abercrombie & Fitch and more.

The purchase of these brands may seem like bad PR, as many are often hesitant to closely align themselves with Walmart, who has a history and reputation of poor business practices with manufacturers and suppliers, however, these investments are more of a partnership in terms of practice. Walmart is forced to invest in these brands as such, because they may very well make the difference between closing its doors as others have and thriving in the world of e-commerce. It’s a win-win for those looking to grow that have proven themselves on the digital forefront.

Freeing up shelf space, reducing shipping costs to stores and reducing the number of employees on the payroll are not only a benefit to the bottom line of the company, but a step in the right direction for those looking to convert inventory to wholesale, direct-to-consumer shipping models. As a method that was once greeted with apprehension, last year’s record-breaking Cyber Monday, in which consumers spent nearly $3.45 billion online compared to Black Friday’s sales that trailed by $110 million, solidified the practice as the future of retail. Many are quick to note that this perhaps isn’t the future, it’s the present.

“Thinking about customer acquisition, the opportunities online and offline are both really exciting for us,” said Matt Kaness, chief executive officer of ModCloth, during an interview following the announcement. “As primarily a digital retailer, one of the things we can now do is grow faster through digital channels. Offline, we’re just getting started, but we’re confident about our model, where all the styles in the shop are available in all sizes. The model of the store is predicated on accelerating digital business by using the storefronts to drive engagement and recognition.”

Walmart is standing its ground more than most companies. Constantly looking for new ways to keep its stores alive, while introducing new online sales and convenience initiatives has allowed it to stay afloat. In recognition of the increase of online consumer spending, Walmart has gone all in, pushing its chips toward acquiring niche brands with strong online sales. In March, Walmart acquired the Michigan-based outdoor apparel and sporting goods company, Moosejaw. While the company doesn’t intend to alter the brand’s business model, it was quick to identify online sales as the main reason behind the purchase. Instead of taking on Amazon as a whole, Walmart is strategically placing a $51 million investment into Moosejaw, in hopes of chipping away at its grasp on outdoor and activewear. Walmart continued to experiment with this idea of taking its piece of the cake from Amazon by swiftly acquiring the highend fashion e-store, ModCloth. Previously, the brand had acquired Jet.com, Shoebuy and Hayneedle with similar intentions. “It’s not very complicated; the customer wants great assortment, price and service, and we haven’t been delivering as well. [Moosejaw, Shoebuy and Hayneedle] are great, but they don’t have enough money to go market their brands and scale them. By joining Walmart, they can make their products available through Walmart and Jet and they can scale faster,” said Doug McMillion, president and CEO of Walmart Stores Inc., during the Bank of America Merrill Lynch Consumer and Retail Technology Conference.

It’s an odd time for retail. While the narration of the past decade has been littered with stories of small business and startups combatting the practices and business model of multibillion dollar corporations — it appears the times have changed. Those very same businesses, the very same giants that once squashed the idea of small competitors are now looking down for assistance. As niche, hyperlocal brands evolve and join brands like Walmart to dip their toes into the world of e-commerce, they do so with a similar enemy in mind. These friends are keeping close, as their enemy stays closer to you. Only time will tell how unlikely tag-teams such as these will playout, as each fight for their place on the mantel of your search bar. Adam Lansdell is an Alumni of Grand Valley State University, and currently a Communication Specialist with M3 Group of Lansing. With a passion for all things creative it comes as no surprise that he’s also a musician, movie buff and graphic designer. Adam spends his down time biking, and spending too much of his personal income on concert tickets or vinyl records.

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DON’T BE LEFT IN THE DARK Searching for solutions to the energy issues of tomorrow BY ADAM LANSDELL

With all of the chaos happening in the world today, it seems likely very few people are aware of the crisis brewing right in their own backyards. It’s not happening behind the scenes, or in the darkness, but it is creating just that — darkness. In the decade to come, a resource we all rely on is poised to spiral into an insufficiency. According to a report released in 2016 by the Consumer Energy Alliance (CEA), states in the Midwest and Mid-Atlantic regions of the U.S. will undergo a 44.8 percent electricity shortfall if government administrators and legislation continue to ignore suggestions based on findings. Michigan alone is currently generating energy in the forms of coal, wind, solar, nuclear, oil and natural gas energy. From a national perspective, one-third of the nation’s capacity for electricity generation is likely to be lost by the year 2030. However, there is a possible fix being proposed by the CEA, one in which they feel is a reasonable solution for curbing a very problematic future — allow for 12

“We’ve got a great opportunity to store natural gas here in Michigan,” said Ventura. “Michigan has a lower average price than almost any other state according to the Energy Information Administration. Chris Ventura, Consumer Energy Alliance’s executive director of the Midwest region the development of more pipeline infrastructure. Historically speaking, lawmakers and environmentalists alike have shied away from and disputed the idea of pipeline development with propositions often being rejected. Based on findings from the CEA, the addition of pipeline infrastructure would allow the U.S. to more efficiently and safely deliver vital oil and natural gas to the region. The general idea is by making these essential components more readily available for consumption by both businesses and consumers alike, would, in turn, reduce the

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region’s dependency on electric energy grids or the need to borrow energy from other regions during unpredictable times of crisis. In March, Chris Ventura, CEA’s executive director of the Midwest region, visited Lansing to lend a hand in dispelling the stigma against such projects and to speak with local leaders about the organization’s recent findings. “A lot of my visit revolved around working with elected officials and freshman legislatures to let them know about what’s currently happening

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and to inform them of how we’ve worked with [legislation] in the past and how our research was put together in terms of things such as the pipeline report and the solar report,” explained Ventura. “We are a national trade association that promotes energy research development. We have an extremely diverse membership with solar, nuclear, mining and other types of energy providers. When we talk about developing those platforms, we’re looking at each one and how we can improve all platforms.” Ventura acknowledged if the region and its leaders continue to ignore the problem at hand, it won’t be the end of the world, but it won’t be easy either. From a consumer perspective and from the perspective of business owners, both large and small alike, there are major implications. “We’ve got a great opportunity to store natural gas here in Michigan,” said Ventura. “Michigan has a lower average price than almost any other state according to the Energy Information Administration. Electricity consumption averages are trending higher than the rest of the company because of the changes, 20-25 percent higher when looking on the month. For commercial and industrial, it’s about 10 percent higher. These small shops and manufacturers will struggle, their first cost is human capital and, aside from the product, the next cost concern is energy. To remain competitive, consumers and people must be able to pay their bills to live. The elderly and social security is definitely a concern.” Pipelines continue to be a difficult subject for lawmakers. Pipeline development is known to present dangerous ecological challenges. Currently, America’s 2.6 million miles of pipelines are the biggest form of transportation in the world — moving billions of gallons of crude oil and gas annually. The development of more pipelines seems excessive to many and, in the event they would break or leak, would lead to massive harm to the water supply and existing habitats. Many of the currently active pipelines date back as far as 1879 — suffice it to say they’re old. In July of 2010, a pipeline ruptured just outside of Marshall, Mich. spewing crude oil in route from the Canadian tar sands. The largest inland spill of it’s kind resulted in nearly 40 miles of pollution to the Kalamazoo River and a subsequent 4,000 acres of damage to land. The Canadian company, Enbridge, was deemed at fault, paying up to $177 million in damages, while the American public was left to foot the bill for the remaining $1 billion clean-up effort via taxes. Pipeline issues are isolated incidents. When they happen, they’re catastrophic to the immediate area, but the occasions on which they do are

According to a report released in 2016 by the Consumer Energy Alliance

States in the Midwest and Mid-Atlantic regions of the U.S. will undergo a

44.8%

ELECTRICITY SHORTFALL if government administrators and legislation continue to ignore suggestions based on findings

33%

of the nation’s capacity for

ELECTRICITY GENERATION is likely to be LOST by the

YEAR 2030 extremely rare. It’s a give and take that the CEA doesn’t shy away from acknowledging. “Regarding concerns as to whether they continue to be the safest way to transfer any type of liquid or gas, 99.9997 percent of what’s put in at the front end safely arrives to the end user,” explained Ventura. “In terms of safety and reliability, pipelines score higher when you look at that record in comparison to other modes like anchor trucks, ships, etc.” Changes to the availability of energy are already happening at a local level. As the nation continues to progress and construct a consciousness for sustainability and ecofriendly practices, there has been a reduction in the amount of coal run plants. While these are steps forward for the environment, they come at the cost of reducing the availability of energy to consumers within the region. Michigan, in particular, benefits from having multiple sources of energy, yet the reduction of these means hard hits to the whole. “Unlike the rest of the country, the Midwest is running nuclear, which isn’t exactly profitable.

And now there’s talk about certain coal plants being closed, which we feel has at least another 14 years of benefit,” said Ventura. “When you bring it all together, the losses of both coal and nuclear, and say what’s left regarding energy availability, it becomes clear that they need pipelines. So, if you can’t fill the pipelines then you’re cutting off that third source of power. In the event the remaining units are shut down, in order to run necessary technologies, it’s not feasible to run an industrialized economy that needs power.” As evidence suggests, action needs to be made sooner rather than later. While the CEA is suggesting steps to take towards proceeding with additional pipeline projects, another practical companion is solar incentives. As one of the world’s most bountiful renewable energy resources, solar energy has long been seen as an untapped source for consumption on a massive scale. As technology advances, solar energy and the panels that create it have become more affordable and readily available for residential and urban installation. By creating incentives for the use of solar panels for businesses or homes, an option would be created to help offset the cost to operate, which are many times too expensive and unobtainable for average consumers. Incentives which would come in the form of federal grants, could include solar panel rental programs for individual homes and businesses or payment or energy bill reduction for generating solar energy on your premise. Consumers could be penalized for not contributing to the generation of solar energy. There is much to be done, but whose shoulders does this action fall on? While it’s easy to point a finger at the government at all levels, it remains a cause for the people as they will be the ones that suffer most should change not come. So what do we do? According to Ventura, consumers need to let their voices be heard. “Reach out to legislators when energy issues arise and let them know their concerns. Let them know they want to be able to pay their bills and that they want to have power when it’s needed. They need to encourage a positive dialogue for the future of Michigan’s energy consumption.” While the problem is still at-hand, it’s hard for people to say where their hearts may lie considering the cautions that come along with pipeline development. While solar and wind energy remain the most eco-friendly, it’s important to ask if it’s enough. Only time will tell what the future holds for Michigan’s energy consumption and generation tactics, but now is not the time to turn a blind eye to what’s happening. What is for certain is that no one wants to be left in the dark. L

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can’t wait to get started on this project.’ It would just be nice to have someone do it the way I do it and the way I was taught to do it … the way it’s supposed to be done.” Ward’s search for a worthy successor started a few months ago, after he was diagnosed with prostate cancer. While weekly chemotherapy sessions have helped heal his prostate, the cancer has already spread to his bones. “I was given six months [to live] about a year ago, so I’m six months ahead of the game,” said Ward, adding that he no longer asks for such estimates. “It’s just a matter of time.” At first he wanted to pass the business on to his children. “I have a son who was not interested in taking the business. I don’t blame him,” Ward said, given the callus-inducing, time-intensive nature of the craft. “I can’t really sell the business. It would be hard to figure out what it’s worth,” said Ward, who then thought, “I’m gonna try to find someone young and trainable to take over the business … anybody who was a hard worker.” The terms of the deal are simple. “If someone was to come into the business and I’d be able to take a solid two years of showing someone the aspects of it,” Ward said he would be happy to hand over his keys. “Give me a call. Come out to my shop. Watch what I do for a minute. See if it’s something that would interest you.”

IT’S MORE THAN A LIVING, IT’S A LIFE BY OMAR SOFRADZIJA

For over a quarter-century, Christopher Ward’s work has given him purpose and passion in life. An upholsterer by trade, the 47-year-old Lansing man started out working in factories before opening his small commercial upholstery business in Lansing, A & S Upholstery Services. Since its launch a few years back, it’s grown into a steady company with a solid client list. To Ward, it’s more than a living; it’s a life — one he hopes will outlive his own flesh and blood. 14

Ward is looking for an apprentice to train and to eventually give the business to for free, with no strings attached. The unusual offer comes as Ward wrestles with a terminal cancer diagnosis. “I would love, love, love to give it to someone who just never got that break in life. Someone who is willing to work hard. Someone like me, who wasn’t willing to go to college, who wanted to learn a skilled trade,” Ward said recently. “Someone who enjoys doing it as much as I love to. I come to work thinking, ‘I

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His initial efforts in finding an owner-in-waiting fell short. “They were either drug addicts or alcoholics that just didn’t want to work,” Ward said. So his financial adviser suggested he look towards refugees. In mid-Michigan, St. Vincent Catholic Charities of Lansing helps place refugees from around the world into jobs, homes and new lives in mid-Michigan. According to charity officials, around 500 refugees were placed into local jobs last year. “We’ve been told by some employers that a lot of the people who are trying to apply for jobs can’t even pass the drug test, but refugees always do,” said Judi Harris, the refugee services director at St. Vincent. “They’re always able to just jump in and start right away. A lot of the folks here, they call us up and they say, ‘I own a business; but I don’t just want to hire somebody. I want to hire somebody who I can help, as well.’” So, around the start of the year, Ward came to St. Vincent “looking for somebody to help work

FEATURE

for him, and he was very interested in helping out refugees,” Harris said. “He called our office; he said he was looking for someone who may take over his business at some point … he needs somebody that will be able to continue on with his life’s work.” Though St. Vincent works with more than 200 greater Lansing businesses, St. Vincent officials never before came across an offer such as Ward’s. “We’ve never known anybody to be that generous and compassionate before,” said Harris. “We were shocked by the offer and by his intent; we think it’s incredible and very generous of him.” “We were really heartened by the offer, but also concerned for Ward’s health,” Harris said. “We sought to find somebody who we thought would be good to work with him, somebody who had experience, somebody who can work with him and help him carry on with what he’s doing.” That worker, a refugee from the African nation of the Sudan, who Harris said came to Lansing late last year with his wife and several children,

is currently Ward’s sole full-time employee and, if interested and found to be able, is under consideration for ownership. “I don’t think he even knew about the opportunity when he was hired,” Harris said of the refugee. “He was just going in for a job, and had some experience in the upholstery business.” As Ward works with his new apprentice to get a feel for whether he can or wants to take over the company, he’s continuing to look for possible successors. He’s looking at area high schools and considering some forms of online solicitation. “I’d be more than happy to give more than one person a shot,“ Ward said. “I do want to give the business to someone who is deserving of it, refugee or not … I really just want to give it to somebody who would take it over and keep the reputation that it has.” The business is doing well, Ward said. He has a client list of around 70 businesses — mostly area restaurants in need of dining booth

upholstery fixes — and about two months of work lined up at any given time. “We’re busy seven days a week. We work 10 to 15 hours a day. I’ll never get rich, but I’ll never not be able to eat … It’s a living. It’s definitely a craft,” Ward said. “Over the past three to four years, the competition has pretty much disappeared … I haven’t looked for work in two years. The work basically comes to me.” Now, he hopes for an heir to arrive. “I told my wife ‘I only have so much time left’,” Ward said. “But I always wanted to see how big I can take my business.” Those interested can contact Ward via email at asupholsteryservices@gmail.com. Omar Sofradzija is an adjunct journalism instructor at Michigan State University. Prior to that, he was a reporter, columnist and editor at the Las Vegas (Nev.) Review-Journal and Peoria (Ill.) Journal Star. He lives in Haslett.

THE POWER OF HOME-GROWN TOURISM BY BRENDAN DWYER The Greater Lansing Convention & Visitors Bureau (GLCVB) is best known for being the local entity charged with drawing both convention and leisure visitors to Michigan’s Capital Region; and it’s a role they shoulder with pride. For the first time in the over 50-year history of the GLCVB, greater Lansing hotels reported over one million total hotel rooms consumed for the year, driving regional lodging occupancy to a record 64 percent. Meeting and convention groups brought in by the GLCVB last year generated an estimated $12 million in economic impact for the region. Additionally, the Greater Lansing Sports Authority, a division of the GLCVB, experienced a nearly 10 percent increase from 2015, and generated over $8.6 million in economic impact with the sports tournaments and events it brought to the area. As these favorable statistics show, the GLCVB remains focused on drawing visitors of all kinds to the region to stimulate the local economy. However, on one special day of the year the GLCVB flips the script

and markets the greater Lansing community to its residents for Be A Tourist In Your Own Town. “Be A Tourist In Your Own Town is an annual, one-day event designed to inspire and educate area residents on the multitude of assets we have in this community,” said Jack Schripsema, president and CEO of the GLCVB. “When residents patronize our local attractions and experience all there is to see and do right here in greater Lansing, they share that energy and hometown pride with people that may become one of the 4.8 million visitors the region hosts each year.” Starting with just 18 attractions 23 years ago, Be A Tourist has grown to include over 90 different local attractions and hot spots that serve as points of pride for the community. A $1 passport grants you free access to long-time favorites like Impression 5 Science Center and Potter Park Zoo to new offerings like behind the scenes tours of the airport and facilities that make up the Lansing Makers & Shaker’s Beer, Wine and Spirits Trail. Take an opportunity to explore attractions and happenings that,

even if you are a resident, you may not have experienced yet. You never know, there may be a whole new reason for you to love your hometown.

WHAT: 23rd Annual Be A Tourist In Your Own Town

“This event is built on so many great longstanding local partnerships,” continued Schripsema. “From our many attractions to key partners like CATA and longtime sponsors like Jackson National Life; the event has stayed strong because of our community partners working together to put our collective best foot forward.”

Your $1 Be A Tourist passport grants you access to over 90 local attractions and hot spots. Collect stamps at various stamp locations and enter to win great prizes. DATE: Saturday, June 3, 2017

Be A Tourist in Your Own Town 2017 will take place on Saturday June 3 from 10 a.m. to 5 p.m. Purchase your $1 Be A Tourist passport at the Greater Lansing Visitor Center on Michigan Avenue. Get more information at lansing.org/batyot.

BE A TOURIST AT A GLANCE…

TIME: 10 a.m. to 5 p.m. COST: Passports: $1 CATA Transportation: 50 cents DETAILS: lansing.org/batyot

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Courtesy photo

A BRIGHT OUTLOOK FOR THE CONSTRUCTION INDUSTRY Need for skilled labor at all-time high, one Michigan school develops next generation workforce BY SARAH SPOHN

For many, construction is a nuisance. Roadwork means detours, longer commutes, dirt, dust and orange cones. For others, it means putting on a hard hat as a way to provide for their families. According to the Associated General Contractors report, the Bureau of Labor Statistics shows that private construction continues to grow, while public infrastructure declines. While private residential projects continue to get funding and to grow, with new business and homes being constructed daily, government projects are struggling to find the funds to complete planned projects. These projects need workers, and one Michigan school has made it its mission to teach students the ins and outs of the construction industry. Stephanie Davis, vice president of the Greater Michigan Construction Academy (GMCA) spoke about their goal. “GMCA’s mission is to educate through the collaboration of the construction industry, their 16

employees and our communities,” said Davis. “We do this by developing new workplace competencies and skills that promote the construction field as a career choice.” GMCA first started its apprenticeship training program in 1983, and Davis says the academy has seen the need for skilled labor rise and fall over the last 30 years. “We are at a point right now where the need is at an all-time high and we are working hard to fill the need,” she said. What started as a few trades offered with GMCA has grown into today’s program of 11 different disciplines: carpentry, insulation, electrical, instrumentation, HVAC, plumbing, sheet metal, pipefitting, ironworking, welding and industrial maintenance mechanic curriculums. Differing from traditional university industry curriculums, students who complete programs at GMCA receive credentials on a nationallyrecognized level, which are both portable and transferrable, according to Davis.

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“Unlike college or university students, all of the modules that GMCA students complete stay with them in a national database through the National Center for Construction Education and Research (NCCER) and can be reviewed by potential employers across the country.” The NCCER is a 501(c)(3) nonprofit education foundation, created with the goal to develop a safe and productive workforce. Together, with the support of construction CEOs, the foundation works to create standardized training and credentialed curriculum programs within the industry in over 70 areas at 4,000 locations nationwide. Davis spoke about how the GMCA contributes to the industry as a whole by preparing students for the workforce. “They are all receiving hand-on training within their classes that is preparing them for the job,” she said. “We also work closely with the industry to make sure we are staying up-to-

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date on the needs they have by keeping our curriculum current and offering the training necessary for each company’s individual needs as well.”

that level. As of May 2015 (the most recent month figures available), the total valuation had reached $1.027 trillion or approximately 86 percent of what it was in 2006.”

Careers in the construction industry can start at entry-level jobs making $30,000 a year, and can exceed well over $160,000 for CEO and senior management roles. Student loans for the tuitionbased program ($1,400 per semester or $700 per semester for Associated Builders & Contractors members); can quickly be paid back soon after job placement; something that draws even more workers to the career path.

“Diving deeper into the numbers, we can see how steep the decline in production really was,” Rohner said. “When the industry bottomed out in February 2011 (two years after the recession “ended”), the value of construction in place had fallen to just under $755 billion, a level the industry had not seen since 1999. That translates to a 37.1 percent decrease in the total value of construction work done across the U.S.”

“We have graduated almost 2,000 students and we are very proud of our 100 percent placement rate for employment,” Davis said.

“The outlook of the construction industry is definitely a bright one,” Davis said. “One way we can help improve it is by continuing to train the workforce that the industry is in need of since the recession caused so many workers to leave the industry back in 2011. Not only the recession, but an aging workforce also plays a large part in the decrease of workers.”

The construction industry is currently seeing brighter days, after the 2011 recession left it with its lowest values in decades. According to a story by Freddie Rohner, of iHire LLC, “The total monthly valuation for all construction put in place (public and private) peaked in March 2006 when it reached $1.2 trillion. Close to ten years later, we still haven’t returned to

According to data from the United States Census Bureau in 2013, the American Community Survey reveals the average age of

construction sector workers in the U.S. is 42. This is one year older than the average overall workforce median age. Attracting the next generation of skilled trade workers is important, and something that GMCA does through accreditation and programs for younger students. “The GMCA is proud to be the only building trade school of its kind in the country to have received a federal accreditation through the Accrediting Council of Continuing Education and Training,” Davis said. Campuses are scattered throughout Michigan, including a campus in Lansing offering electrical, plumbing and HVAC programs. “We also have a partnership with Lakewood High School, in which they offer a construction technology program to their juniors and seniors within their school,” Davis said. “This program will offer the same type of credentials to students while still in school. By partnering with local contractors in need of skilled labor, we will be able to help place these students in jobs when they graduate.”

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MANUFACTURING ESSENTIAL TO REGION’S DIVERSIFIED ECONOMY BY MICKEY HIRTEN

Hosting two of the world’s most modern auto assembly plants and a sprawling network of industry suppliers, Lansing’s reputation as a manufacturing center is often overstated. Manufacturing directly accounts for just 21,000 of the region’s 235,000 jobs, although it supports other job sectors like trade and transportation, information technology and even leisure and hospitality. Ultimately, what drives Lansing’s economy is 100,000 jobs tied to government and education, notably Michigan State University. But the region’s manufacturing sector is essential to a diversified economy. It provides entry level jobs, work for skilled trades, experienced journeymen, technicians and college trained professionals. Within the overall manufacturing economy, pure production jobs, as defined by the federal government, accounted for more than 17,000 jobs in the greater Lansing region. A U.S. government survey in 2015 put the mean average wage at $38,400 and found that production jobs, as a share of the local workforce, exceed the national average by about 25 percent.

and tourism put together, do not have as big an economic impact as manufacturing.” He added that looking solely at production and manufacturing jobs understates the economic value. “A good manufacturing job, something in an auto-related business, can supply five more jobs,” Hadden said. What challenges manufacturers is a shortage of skilled labor and misconceptions about their operations. The MMA cites an industrysponsored survey to illustrate the difficulty luring young workers into manufacturing and production jobs. While it found that 90 percent of the 1,000 people surveyed considered manufacturing as “important or very important — the highest of all sectors,” only 43 percent viewed manufacturing as a secure and stable career option and just 35 percent of those surveyed said they would encourage their children to pursue manufacturing careers.

This doesn’t surprise Chuck Hadden, president and CEO of the Michigan Manufacturers Association (MMA).

“People are still thinking that [manufacturing facilities] are a dirty place to work, that workers do the same thing over and over again. They’re not. Michigan needs to embrace manufacturing,” Hadden said.

“Manufacturing is the largest sector of Michigan’s economy,” Hadden said. “The next two, farming

Data compiled by the Bureau of Labor Statistics (BLS) provides a detailed look at 40 Lansing area

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production related skills as diverse as chemical equipment operators, bakers, printing press operators, welders and machinists. It identified power plant operators who control, operate or maintain machinery to generate electricity as having the highest mean annual wage — $66,970, as compared to the national average of $71,070. Operators are a select group, with just 90 jobs in the region. Stationary engineers, who operate or maintain stationary engines, boilers or other mechanical equipment to provide utilities for buildings or industrial processes, have the second highest annual wage, according to the BLS — $64,440, higher than the national average of $60,480. As with power plant operators and stationary engineers - just 40 in the region — represent a small slice of the production workforce. At the low end of the production pay scale are laundry and dry cleaning workers whose mean annual income is $22,750, a shade above the national average of $22,660. Other jobs at the low end are production helpers ($24,280 annually) and bakers ($25,080). The single largest category of production workers is team assemblers, many of them employed at GM’s auto assembly plants. There were 6,440 jobs in this classification, with an annual mean wage of $39,340. The region’s second largest cohort, and among the highest paid at $48,700 annually,

FEATURE

is machinists. There are 1,400 employed in the region and manufacturers struggle to fill positions. Also, thanks to the auto industry, the Lansing region has a disproportional share of its workforce engaged as assemblers. The federal government measures job concentration in communities against a national average using what it terms “a location quotient.” For team assemblers, it

grades the greater Lansing region at 3.87. It means that for one assembly job nationally, there are 3.87 in Lansing. Other jobs that exceed the national average are hand grinding and polishing workers and tool grinders, filers and sharpeners. Both are employed with the auto assembly process, which for Lansing remains the dominant driver of production and manufacturing employment.

Mickey Hirten is an award winning writer and editor. He has been executive editor of the Lansing State Journal, the Burlington Free Press in Vermont, and was the financial editor and a columnist for the Baltimore Evening Sun. He is the current president of the Michigan Press Association. His wife, Maureen Hirten, is director of the Capital Area District Library.

PAY: ANNUAL EARNINGS BY JOB CLASSIFICATION Occupations

Number of jobs

Jobs per 1,000

Annual mean wage

0.4

$66,970

Stationary Engineers & Boiler Operators

0.2

$64,440

First-Line Supervisors of Production & Operating Workers

770

3.7

$61,670

Water & Wastewater Treatment Plant & System Operators

150

0.7

$52,100

Computer Numerically Controlled Machine Tool Programmers, Metal & Plastic

0.2

$51,280

1,400

6.8

$48,700

Dental Laboratory Technicians

n.a.

$46,540

Tool & Die Makers

200

1.0

$45,230

Tool Grinders, Filers & Sharpeners

0.2

$45,030

Chemical Equipment Operators & Tenders

0.2

$44,450

Power Plant Operators

Machinists

EMPLOYMENT: ESTIMATE OF THE NUMBER OF WORKERS IN PRODUCTION JOB CATEGORIES Occupations

Number of jobs

Jobs per 1,000

Annual mean wage

Team Assemblers

6,440

31.3

$39,340

Machinists

1,400

6.8

$48,700

Inspectors, Testers, Sorters, Samplers & Weighers

780

3.8

$37,450

First-Line Supervisors of Production & Operating Workers

770

3.7

$61,670

Helpers — Production Workers

620

3.0

$24,280

Welders, Cutters, Solderers and Brazers

560

2.7

$41,840

Cutting, Punching, & Press Machine Setters, Operators & Tenders, Metal & Plastic

390

1.9

$37,100

Laundry & Dry-Cleaning Workers

350

1.7

$22,750

Computer-Controlled Machine Tool Operators, Metal & Plastic

330

1.6

$37,390

Printing Press Operators

330

1.6

$39,700

REGIONAL JOBS CONCENTRATION: CONCENTRATION IN GREATER LANSING MEASURED AGAINST NATIONAL AVERAGE Occupations Team Assemblers

Number of jobs

Jobs per 1,000

Annual mean wage

6,440

3.87

$39,340

Grinding & Polishing Workers, Hand

120

2.96

$30,590

Tool Grinders, Filers & Sharpeners

2.62

$45,030

1,400

2.36

$48,700

Crushing, Grinding & Polishing Machine Setters, Operators & Tenders

100

2.1

$41,640

Tool & Die Makers

200

1.8

$45,230

Plating & Coating Machine Setters, Operators & Tenders, Metal & Plastic

1.78

$29,240

Heat Treating Equipment Setters, Operators & Tenders, Metal & Plastic

1.77

$33,310

Print Binding & Finishing Workers

130

1.64

$36,700

Lathe & Turning Machine Tool Setters, Operators & Tenders, Metal & Plastic

1.57

$36,410

Machinists

*Location Quotient: The ratio of an occupation's share of employment in a given area to that occupation's share of employment in the U.S. as a whole. For example, an occupation that makes up 10 percent of employment in a specific metropolitan area compared with 2 percent of U.S. employment would have a location quotient of 5 for the area in question. 19 LansingBusinessNews.com

N I P E KE

H T H T I W

v e y l t n a t s n o c s ’ g n i s n a L o t k in

A loo BY MICKEY HIRTEN

nsuring the strength and viability of Lansing’s manufacturing economy means adapting to rapid changes in consumer demand, means of production, distribution, technology and more. For manufacturers, large and small, it means looking strategically at their operations and often rethinking their business models. Helping them with these challenges and opportunities are organizations like the Lansing Economic Area Partnership (LEAP), Capital Area Michigan Works! and Lansing Community College’s (LCC) Business & Industry Council.

Capital Area Michigan Works! sponsors the Capital Area Manufacturing Council, bringing together key executives to collaborate and share best practices. It partners with organizations like the Pure Michigan Talent Connect and Michigan Workforce Development Agency to understand job opportunities, trends and forecasts while promoting the view that, even in its diversity, clustering similar manufacturers strengthens their position in the state economy.

technologies — serve as vehicles to strengthen their competitive advantage and leverage the industrial potential of Michigan State University’s Facility for Rare Isotope Beams and its National Superconducting Cyclotron Laboratory.

For LEAP, two specialized clusters — advanced manufacturing and accelerator

Within the manufacturing community, these programs are succeeding, according to Bo

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LEAP’s programs help businesses locate resources to find and retain talent, improve technology, tap into business incentive programs and even select manufacturing sites.

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Garcia, LCC’s dean of Community Education and Workforce Development. Garcia oversees LCC’s Business & Community Institute, which provides corporate trainings in project management, leadership, information technologies and similar programs designed to help executives and their companies adapt to the rapid pace of change. “We identify regional employers’ pain points, areas that impede their growth. And with consulting or training, we identify solutions to resolve their issues,” Garcia explained.

He acknowledges the challenges facing manufacturers, but added that they bring with them opportunities. “I see them working to innovate ways to get the job done better, optimizing their production lines, balancing work flow and incorporating new technologies. It’s an opportunity to build a future,” he said. The leading edge of LCC’s support development initiatives is its Center for Manufacturing Excellence, which Garcia describes as a “gateway to robotics and automation.”

It blends traditional programs in manufacturing, welding, electrical technologies, apprenticeships and corporate training with advances in flexible manufacturing systems, a technology he said is revolutionizing production. “It’s how manufacturers are coping. They are turning to automation, to partnerships with colleges,” Garcia said. Highlighting LCC’s role in this transformation, he noted the Business & Industry Council in 2016 trained 3,700 individuals and offered the business community more than 400 training programs. L

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The Greater Lansing Business Monthly connected with members of the Capital Area Manufacturing Council and asked them to reflect on the changes affecting their businesses and what they expect to see in the future. The Council provides mid-Michigan manufacturing executives and human resource professionals with the training, jobsearch outreach and access to area experts and best practices. Here are their thoughts: ANDY STORM, CEO

Eckhart & Associates, Inc. Business specialty: Engineering advanced industrial solutions that enhance the quality of life CAN YOU DESCRIBE SOME SIGNIFICANT CHANGES THAT HAVE AFFECTED HOW YOUR COMPANY MANUFACTURES ITS PRODUCTS? As manufacturers are challenged to increase productivity, product quality and safety, Eckhart’s focus on collaborative robots and automationbased solutions is transforming how our core products deliver value to customers. We have embraced additive manufacturing (3D printing) to simplify our bills of material and eliminate complexity and cost from our design cycle. At a factory floor level, we’ve implemented a team structure that empowers Group Leaders within key functions of our company to lead and drive change and generate real-value for our customers.

WHAT CHANGES DO YOU ANTICIPATE IN THE FUTURE THAT ARE LIKELY TO AFFECT HOW YOUR COMPANY MANUFACTURES YOUR PRODUCTS? We anticipate and are planning for a robotics revolution in manufacturing. As technology becomes more mobile across manufacturing sectors, data and the capture of it is allowing manufacturers to establish diagnostic intelligence that informs them on the health, speed and effectiveness of their factories and production processes in real-time. With an installed base of solutions across multiple industries, we see a controls, robotics and automation-based suite of solutions in our future. Our goal is to engineer advanced industrial solutions for our customers’ most difficult problems and, in return, enhance their quality of life.

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CTA CTA CTA

COVER

JULIE HAAK, CORPORATE DIRECTOR OF HUMAN RESOURCES Neogen Corporation

Business specialty: Developing test kits that the global food industry uses to ensure food is free of pathogenic bacteria, toxins, unlabeled food allergens, veterinary drug residues and other harmful materials CAN YOU DESCRIBE SOME SIGNIFICANT CHANGES THAT HAVE AFFECTED HOW YOUR COMPANY MANUFACTURES ITS PRODUCTS? We’ve made many changes, but most involve the implementation of automation to improve the speed and accuracy of the production of our massproduced products. The production of many of our popular biotechnology products require multiple precise applications of test reagents — tasks we’ve found to be well-suited for automation.

WHAT CHANGES DO YOU ANTICIPATE IN THE FUTURE THAT ARE LIKELY TO AFFECT HOW YOUR COMPANY MANUFACTURES YOUR PRODUCTS? In the next few years, we anticipate that demand for more of our products will increase to the point where it may be cost-efficient to automate more of our manufacturing. At the same time, manufacturers of automated manufacturing equipment are likely to offer better and less expensive options to us, pointing to the use of more automation in our manufacturing processes.

PAT CEBELAK, PRESIDENT IMPCO Microfinishing

Business specialty: Machine tool manufacturer producing Microfinishing machines CAN YOU DESCRIBE SOME SIGNIFICANT CHANGES THAT HAVE AFFECTED HOW YOUR COMPANY MANUFACTURES ITS PRODUCTS? Cost of ‘bought out parts’ within the U.S. and ‘raw material’ costs purchased within the U.S. have increased. These are costs that we cannot control and they do affect margin greatly. We have noted that there is a lack of skilled personally available for employment within the local area (Lansing/metro-Detroit). We continually try to work with low-cost regions around the world to procure some product, but it would be nice to have some missions in territories to build these relationships driven by midMichigan manufacturing.

WHAT CHANGES DO YOU ANTICIPATE IN THE FUTURE THAT ARE LIKELY TO AFFECT HOW YOUR COMPANY MANUFACTURES YOUR PRODUCTS? We need to develop a short- and long-term strategy to allow our product timelines to be reduced, purchase order date to delivery date. Our customers are demanding shorter delivery times from project-to-project. IMPCO needs to continually develop and refresh its branding and energize its customers within the marketplace, both with process and product type. And we need to establish a ‘sound’, ‘reliable’ and ‘dependable’ low-cost vendor for sourcing equipment and purchased parts in the U.S. or internationally.

MIKE ZAMIARA, CFO Niowave, Inc.

Business specialty: Manufacturing and development of superconducting particle accelerators CAN YOU DESCRIBE SOME SIGNIFICANT CHANGES THAT HAVE AFFECTED HOW YOUR COMPANY MANUFACTURES ITS PRODUCTS? Our company is still at the scale-up stage for our accelerators so we are more focused on development of our system and have not entered the stage where we are performing standard work. That said, we are building accelerators that will help companies enter the world of Advanced Manufacturing. Today we are seeing more interest from companies all over the world that want to use technology to maintain their competitive advantage and increase productivity.

WHAT CHANGES DO YOU ANTICIPATE IN THE FUTURE THAT ARE LIKELY TO AFFECT HOW YOUR COMPANY MANUFACTURES YOUR PRODUCTS? As we see more manufacturing coming back to the U.S., and specifically the Midwest, we have more of these manufacturers asking us about the use of accelerators in their manufacturing process. We will continue to see these manufacturers looking to use technology to advance their manufacturing process. This open-minded approach will allow these manufacturers to improve their competitiveness in the marketplace.

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VISUAL BREAKDOWN

MANUFACTURING

The king of jobs

A me ri c a â&#x20AC;&#x2122; s mo st i m p o r ta nt in d ustry THE MANUFACTURING SECTOR HAS A LARGE FOOTPRINT IN THE U.S. ECONOMY

MANUFACTURING EMPLOYS OVER 12.0 MILLION PEOPLE

equaling 8.8 percent of total U.S. employment Manufacturing industries generated

$2.1 TRILLION IN GDP =

12.5 % of total U.S. GDP

THE TOP 5 STATES WITH THE LARGEST EMPLOYMENT BASE INCLUDE

CALIFORNIA (1,251,400 jobs)

TEXAS

ILLINOIS

OHIO

MICHIGAN

(871,700 jobs) (662,100 jobs)

THE HIGHEST PAYING SUBJECTS OF THE MANUFACTURING INDUSTRY INCLUDE ...

(579,600 jobs)

(555,300 jobs)

Every $1 spent in manufacturing adds $1.37 to the U.S. economy

Every 100 jobs in a manufacturing facility creates an additional

250 JOBS

Petroleum & Coal $46 per hour

Aerospace $45 per hour

Chemical

$36 per hour

National Median across all industries

$28 per hour 24

G R E AT E R L A N S I N G B U S I N E S S M O N T H LY

M AY 2 0 1 7

in other sectors

VISUAL BREAKDOWN

DESPITE OPPORTUNITIES, A MAJOR SKILL GAP WITHIN THE INDUSTRY IS POISED TO CREATE ISSUES …

THERE ARE TWO MAJOR CONTRIBUTING

FACTORS TO THE WIDENING GAP baby boomer

RETIREMENTS

economic

EXPANSION

MAIN FACTORS CONTRIBUTING TO THE SKILLS GAP SHORTAGE OF SKILLED WORKFORCE LOSS OF EMBEDDED KNOWLEDGE (due to movement of experienced workers)

OVER THE NEXT DECADE NEARLY

NEGATIVE IMAGE OF THE MANUFACTURING INDUSTRY

MANUFACTURING JOBS WILL LIKELY NEED TO BE FILLED

(science, technology, engineering and mathematics)

THE SKILLS GAP IS EXPECTED TO RESULT IN 2 MILLION OF THOSE JOBS GOING UNFILLED

DECLINE OF TECHNICAL EDUCATION PROGRAMS

3.5 MILLION

(among younger generations)

LACK OF STEM SKILLS

(in public high schools)

82%

78%

of executives believe the skills gap will impact their ability to meet customer demand

believe the skills gap will impact their ability to implement new technologies and increase productivity

THERE ARE MANY DISCIPLINES AT VARIOUS SKILL LEVELS WITHIN THE MANUFACTURING INDUSTRY & COLLEGES ARE PROVIDING NEW CAREER PATHS TO FILL THE VOID …

ENGINEERING Technology

Rubber

LOGISTICS & MATERIALS

Plastics

Mechanical

Packaging Science

Product Design

Aerospace

Transportation Information

Quality

Welding

Human Resources Communications & Acquisition Marketing

SCIENCES

CERTIFICATIONS

CAD Drafting and Tool Design

Industrial Practices Manufacturing Operations Management

Tooling Technology Manufacturing

Quality Technology

Plastics and Rubber Technology Degrees

Compiled by Adam Lansdell | Graphics by Nikki Nicolaou | Sources: American Aerospace Association & Deloitte Canada, Deloitte: The skills gap in U.S. manufacturing 2015 and beyond, Mashable/Statista, US News World Report, The College Board, Forbes L

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DEMAND AND SUPPLY:

MARKET DEMAND BY MORDECHAI E. KREININ, UNIVERSITY DISTINGUISHED PROFESSOR (EMERITUS), MSU

Consider the market for milk. On the side of demand there are millions of milk buying people, while on the supply side youâ&#x20AC;&#x2122;ll find thousands of milk producing farms, all competing with each other for sales. The number of buyers is so large that not one of them can affect the price by her own action, and the same holds true for the number of sellers. The product, milk, is standardized or uniform: Milk is milk; without any gradation or other product characteristics. The marketâ&#x20AC;&#x2122;s demand for milk is the sum total of individual demand, which in turn is explained by consumer behavior. We shall skip these matters here and accept the common sense proposition that, other things being equal, the lower the price of milk the more of it will be purchased and conversely, the higher the price of milk the less it will be purchased. The same holds true for other commodities. Demand is a schedule that shows how much milk will be purchased at different prices. It is not a point. Thus, the statement that demand for cars during a given year was 16 million (because that many cars were sold) is wrong. Rather the demand for cars is a schedule that shows how many cars will be sold at various prices. Now, consider a simplified version of a hypothetical demand schedule for milk, with only three prices and related quantities purchased. Table 1 shows hypothetical price and quantity numbers. Table 1

THE MARKET DEMAND FOR MILK Point

Price of Milk

Quantity of Milk Purchased

(Dollars per Gallon)

(Millions of Gallons)

As the price of milk rises from point A to B to C, quantity purchased declines. Price and quantity purchased move in opposite directions. By multiplying the price by quantity one can see the total amount spent on milk at each of the three points: Point A) $30 million; Point 26

B) $40 million; Point C) $30 million. The most important thing in demand analysis is to distinguish between moving along the schedule, from point C to B to A, and shifting the entire schedule. Moving from point C to B to A describes increases in the quantity purchased. Industries and firms are extremely interested in the response of buyers to price change, or by how much their sales would rise if price declines. The terms increase or decrease in reference to demand is reserved for showing an increase or decrease in the quantity purchased at each and every price. For example, Table 2 shows an increase in the demand for milk relative to Table 1: Table 2

AN INCREASE IN DEMAND FOR MILK Point

Price of Milk

Quantity of Milk Purchased

(Dollars per Gallon)

(Millions of Gallons)

A-1

B-1

C-1

Readers familiar with simple graphics are invited to draw tables 1 and 2 for themselves on a two dimensional diagram; showing price on a vertical axis (by tradition) and quantity on the horizontal axis. The graph of Table 2 lies to the right of that of Table 1. What factors increase or decrease the demand for a product in this sense? Income: Suppose we are dealing with the market for cars and assume that community income doubled, than at each and every price more cars will be purchased, so demand will rise as in Table 2. Conversely, contraction in income will reduce demand of Table 2 back to Table 1. Change in the Price of Substitute Products: Suppose chicken and beef are substitutes in consumption. If the price of beef rises for whatever reason, some consumers will shift their preference to chicken. Change in Price of Complementary Products: Suppose suits and ties are complementary goods in a sense that they are

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worn together. If the price of suits rises the quantity of suits purchased declines as we move along the demand schedule for suits and there is less need for matching ties. The demand for ties declines as the entire demand schedule shifts downward. In sum, change in the price of a substitute product changes the demand for the product in the same direction, while change in the price of complementary products changes demand for the product in the opposite direction. Anticipation of Future Price Change: Suppose that car manufactures announced their intention to raise the prices of next year models. Such a credible expectation will induce some car buyers to purchase more cars this year to avoid the price increase. The demand for cars will increase. This is a good illustration showing that demand has a time dimension, such as a year. Change in Taste: A change in consumer taste in favor of a product raises demand for the product, while change in an adverse direction lowers demand for the product. Change in the Number of Consumers: It will be recalled that market demand is the sum total of individual demand for the product. If the number of consumers in an individual market rises (or falls), the market demand will rise (or fall). This distinction between movement along the demand schedule and changes in the demand schedule cannot be overemphasized. Movement along the schedule shows a relation between the quantity and price of the product itself. Other factors that affect demand for the product are shown by shifts in the entire schedule. Mordechai Kreinin is a University Distinguished Professor of Economics, emeritus at Michigan State University and past President of the International Trade and Finance Association. He is the author of about 200 articles and books about economics, including the widely used text, International Economics. He can be reached at kreinin@msu.edu or by cell phone at (517) 488-4837

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BEHIND THE SCENES

time. We’ve had modest, but steady, growth every year and that’s kind of how we like it. We haven’t taken great risks that might get us into a lot of financial trouble. WHAT DOES IT TAKE TO SUCCEED AS YOU MANAGE THE BUSINESS FROM ONE GENERATION TO ANOTHER? There have been tremendous changes from my grandfather’s age; particularly in food manufacturing. We have invested in our production operations systems and personnel to meet and exceed the latest food-quality standards. We are an SQF (Safe Quality Food) certified facility, which means that companies around the U.S. and throughout the world can look at LorAnn Oils as a very legitimate player in the food and flavoring business. DOESN’T THAT MEAN CEDING SOME MEASURE OF FAMILY CONTROL? The SQF certification process was one of the first where we brought in outside managers. We now have a quality control manager and an SQF manager. It’s very important for the company. Our IT needs over the years have grown to the point where we needed to add an IT manager. These have added a lot of value to our operations, although they don’t add direct sales or anything like that. AS YOU EXPAND YOUR PLANT IN 2017, WHAT WILL HELP SUPPORT LORANN’S GROWTH?

BY MICKEY HIRTEN | PHOTO BY ERIKA HODGES

JOHN GRETTENBERGER President and CEO, LorAnn Oils

John Grettenberger, 53, is president and CEO of LorAnn Oils, a manufacturer/distributor of premium flavorings and essential oils. The company was founded 55 years ago by his grandfather, a pharmacist, who sold peppermint, clove and similar oils to pharmacies. Today, from its headquarters in Lansing, the company supplies retail and wholesale customers throughout the U.S. and overseas. HOW ABOUT A QUICK OVERVIEW OF THE COMPANY? When people hear LorAnn Oils in this town they probably assume that the oil in our name has to do with some sort of lubricant. But our origins come from pharmacy and essential 28

oils, the kinds of oils found in a peppermint plant or in orange or lemon peels. The business was started 55 years ago by my grandfather, who was the pharmacist in Okemos. When I started working here in 1993 there were about 15 full-time employees. Today, we have 42 full-time employees and another 10 or so part-

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We need more space for production and for office personnel, including our quality and IT managers, our service staff to handle orders and, most importantly, our senior sales people need to grow. A couple of years ago we made a stronger push for international sales and hired an expert in that area. Because our international department is growing we need more production space, and soon we’ll need more help. YOU’VE INDICATED THAT YOU SELL IN 30 DIFFERENT COUNTRIES. HOW CHALLENGING IS THE GLOBAL MARKET? We have a unique product that is well-liked by a lot of loyal customers. We had never made a concerted effort to sell internationally, but over time, in Canada and Mexico, in particular, and in Europe, people and businesses heard about our flavors and started to buy them. AND THE U.S. MARKET? We have to be price competitive, particularly as we sell to large companies like Walmart,

BEHIND THE SCENES

Michaels and Hobby Lobby. In addition to good pricing, we have to be able to deliver on their orders. The quickest way to lose large customers is to fulfill orders incompletely or have production be delayed. WHAT ABOUT COMPETITION? WHO ELSE OUT THERE IS SELLING 1-DRAM BOTTLES OF FLAVORINGS? It is competitive, but because of our expertise and our investment in the plant and equipment over the years, we can produce more efficiently than almost anybody else, especially when you are talking about bottling little tiny bottles of flavorings. We try not to compete directly with people like McCormick or very large flavor houses who sell flavors by the drums very cheaply to large food manufacturers. Our flavorings strive to be unique – stronger than most other flavors. They really are professional strength products, which we’ve brought down to consumer sizes. Also, we have a greater breadth of flavor choices and essential oils. And, the third factor is our customer service. We retain the oldfashioned tradition of no minimum order. We let our customers order what they need, when they need it and we ship the orders quickly. ALL OF THIS HAPPENS HERE IN LANSING. WHAT ARE THE ADVANTAGES AND DISADVANTAGES OF WORKING HERE ON AURELIUS ROAD? I’ve never thought of Lansing as having any significant disadvantages for us. You might say that our facility has been a disadvantage for us. We keep running out of space and have to keep adding on to the building. FOR SOME BUSINESSES THAT WOULDN’T BE THEIR WORST PROBLEM. We look at it that way too. It’s a positive. Just down the road from us is a major UPS hub. We are a big customer and they are here picking up once or twice a day. We are centrally located enough in the U.S. that it’s not a big deal shipping to the East or West Coasts. There are some challenges with our international trade where we ship to the coasts and then it goes out.

fill out a lot of paperwork with each step of the process. There are quality control checks that we have to follow. It’s more complicated than it has ever been. YOU SERVE BOTH THE RETAIL AND WHOLESALE MARKETS. HOW DO THEY DIFFER? First and foremost, it’s the way we package the flavors. We have small sizes that are intended for retail display — small 1-dram bottles (.125 fluid ounces), formats that are appropriate for display and easy to ship. Our challenge is the growth of sales through the Internet. Many of our customers who had brick-and-mortar stores have moved to just selling through the Internet. They find that they can be more effective, or just as effective, than when they had a little shop. The other part of our business, selling to manufacturers, is strong and growing. Mostly we sell to those independent manufacturers who still make candy by hand or who make flavored popcorn by hand or bakeries who do specialty cupcakes and wedding cakes and things like that by hand.

DO YOU SEE THIS AS PART OF THE TREND TOWARD LOCAL FOODS? I’m glad to see resurgence. It’s working in our favor. I love to support those operations personally and we’re glad to help them businesswise. We are hoping that not everything turns into a chain restaurant or chain bakery. FOR LORANN OILS, WHAT WOULD BE MISSING IF YOU WEREN’T THE CEO? The main managers, Carl Thelen, our chief operating officer, and I bring an entrepreneurial work ethic. We both wear a lot of hats. In my case, I’m doing sales, personal management and benefits. I’m doing accounting work. AND TALKING TO THE MEDIA . . . There’s no press person to turn you over to. With Carl on the manufacturing side, he’s got an equal number of hats to wear. Frankly, as we grow, Carl and I will have to divest ourselves of some of this and hire additional people to help us with these tasks. This conversation with John Grettenberger has been edited for space and clarity.

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AND YOU ARE ABLE TO FIND THE WORKERS YOU NEED? Yes. But it’s getting tougher to find highly skilled people. It used to be that the production part was very manual labor and low skilled. Today, the people working in our production environment have to be quite sharp. They have to run complicated equipment. They have to

(8 8 8 ) D AR T - 0 0 1 | d ar td e v e l o p m e n t. c o m

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LEGISLATIVE CORNER

GREATER LANSING IS BACK IN THE DRIVER’S SEAT BY STEVE JAPINGA

Manufacturing is back in business. The greater Lansing region continues to see a resurgence of the industry that literally drives the economy within the local and global marketplace. In recent years that wasn’t always the case. Between 1998 and 2010, Michigan lost 45 percent of its manufacturing jobs. Several communities across the state, including Lansing, were affected by the ever-changing industry — a region that relied heavily on automotive manufacturing. While the auto industry continued to transform, greater Lansing had to diversify its economy to grow. The region’s transformation was no accident. It was strategically planned by thoughtful businesses, entrepreneurs, the community and elected officials, who work closely together to energize the local economy and set a course for the future. Today, we’ve seen the results of their hard work first-hand — a more advanced and diverse economy that includes health care, information technology, bio-tech and science. With the construction of the Facility for Rare Isotope Beams (FRIB) at Michigan State University, the region is on the ground floor of a new frontier focused on cutting edge technology and science that will benefit the entire world. Historically, our region’s expertise in manufacturing has served as the foundation of our economy. As we develop our place in the 21st century knowledge economy, the role of advanced manufacturing cannot be overstated. 30

General Motors continues to be our titan anchor — investing billions into the Grand River and Delta Assembly plants — two of the most state-ofthe-art plants in North America. GM’s investment has spurred continued growth for a number of auto suppliers and manufacturers across the region. All the pieces are in place for greater Lansing to continue to thrive and further set ourselves apart from other regions. However, the piece of the puzzle that makes it all run is the people. While the manufacturing sector has adapted to change in the new era, the way people are trained for these high demand jobs has not. The challenge is not whether an individual can find a job or not, but rather if he or she is prepared to fill that job. According to Pure Michigan Talent Connect, an online marketplace resource that connects job seekers and employers, there are 100,000 jobs available in Michigan. The jobs that are in high demand are those that require skilled trades and technical workers. There’s good news. There has been a major shift and focus on preparing individuals for jobs in skilled trades. For individuals within the workforce seeking additional professional development opportunities in skilled trades, Pure Michigan Talent Connect is an excellent resource. Through Talent Connect, a new program called ‘Going Pro with Skilled Trades’ provides opportunities for high school and community college students to pursue a skilled trades career. Locally, Capital Area Michigan

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Works! has been an outstanding resource for connecting job seekers with area employers, as well as providing individuals with educational opportunities to grow. Educational institutions are also stepping up to ensure students are college and career ready in the 21st century economy. For example, the Lansing Public Schools bond, approved by voters, Pathway Promise, provides a threelane approach for students to best align their educational and career interests. The three pathways offer students opportunities in visual and performing arts, new tech, international baccalaureate, science, technology, mathematics, engineering, skilled trades, manufacturing and language immersion. The times are definitely changing. As a region, we must adapt and adjust in order to grow and thrive. Fortunately, it is our grit and work ethic, our long-established entrepreneurial spirit and our willingness to work together that are positioning the greater Lansing region for success in the years ahead. Steve Japinga is Director of Government Relations for the Lansing Regional Chamber of Commerce. He is responsible for developing and managing the Chamber’s policy priorities as well as monitoring local, state, and federal issues that may impact the business community and the Greater Lansing region. He is a graduate of Michigan State University and lives in Lansing with his wife Katherine and dogs, Charlie and George.

Coffee? Donut? Business Loan? If you’re a Lansing business leader looking for good conversation, a cup of coffee and the right loan solution, let’s talk. We’re big on business banking expertise. In fact, we can bring you multiple solutions through a number of business banking services—commercial lending is just one. Let’s pick a time and place to talk about your business loan needs. We like to think of it as a good way to get to know each other. You can think of it as a free cup of coffee and new ideas for your business.

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REAL ESTATE

The demand for industrial space

TIGHT SUPPLY TRANSFORMING THE MARKET BY JULIE O’BRIEN

Economic data related to the U.S. industrial real estate market is pointing in a positive direction. The national availability rate was essentially unchanged in Q1 2017, even in the face of increased supply.

“As the case has been historically, the future of the industrial market in the greater Lansing area will be largely affected by how GM performs,” noted Chris Miller, associate, Industrial & Logistics, CBRE|Martin.

CBRE Econometric Advisors estimates about 45 million sq. ft. of industrial space was completed in Q1, which is the highest first-quarter level since 2008. The surge in construction is welcome given broad-based tenant demand, which is being supported by a number of positive economic drivers. While there is no one surefire indicator to gauge future demand, the totality of the economic data makes us optimistic that the industrial market will remain relatively balanced in the coming quarters despite a flush construction pipeline.

The industrial market is directly impacted on a local level by General Motors. With the recent layoffs and rehiring within GM there is uncertainty as to what effect this will have on the market, and this will be something to watch for over the next 12-18 months.

Although trade will likely be a net negative for U.S. GDP growth in Q1 2017, the wider trade deficit is a plus for the industrial market as imports generate more aggregate warehouse demand than exports. One note of caution is the softer import volume of auto parts; this could hurt leasing activity in certain Midwest industrial markets if auto sales continue to weaken as they did in March. When looking at the greater Lansing area, we see demand for space has been climbing at a consistent rate, but hesitation is still present as to what the rest of the year will hold.

Outside of the auto industry, activity of new and existing industrial occupiers is expected to continue to increase. “As a team, knowing what is essential for our clients and meeting their ongoing occupancy needs is extremely important,” added Julie O’Brien, senior associate, Industrial & Logistics, CBRE|Martin. Locally, large warehousing and manufacturing facilities with optimal building specifications are in short supply and many large occupiers are focusing on build-to-suit projects to meet their space needs. Newly available is one of the largest manufacturing and distribution sites in the area. With over 650,000 sq. ft. on 102 acres, 500 E. Packard Highway in Charlotte is a central Midwest location accessible to a ready and available workforce that will attract

a wide array of interest. The owners, who recently purchased the expansive property, are considering a number of improvement options to increase marketability and space utilization. Transforming existing industrial properties to meet market demand is a growing reality. Smaller sized industrial properties ranging from 10,000 sq. ft. to 50,000 sq. ft. may require significant improvements to either open the space up or divide the space into smaller suites for multitenant use. With a tight inventory of suitable properties, tenants are seeking flexibility from landlords to turn existing, well-located properties into useable space and landlords are willing. By reinvesting, property owners are transforming their existing buildings in order to keep their investments relevant to the market. Wide ranging tenant demand for industrial real estate has surged locally, mirroring national market activity. International trade, growth in factory orders, solid retail sales, e-commerce gains, and optimistic consumer sentiment are positive indicators for ongoing, steady demand for industrial real estate. Julie O’Brien, Senior Associate/ Industrial & Logistics at CBRE|Martin. CBRE #1 in commercial real estate worldwide.

CBRE|Martin’s industrial specialists completed 90 percent of the top local industrial real estate transactions in 2016 and offer over 75 years of industrial real estate expertise. Julie O’Brien, Chris Miller, Jeff Ridenour and Van Martin provide industrial owners and occupiers with a superior focus based on in-depth market intelligence, delivering real advantage and real results. Sources: CBRE|U.S. Marketflash | Economic Indicators Point Upward for Industrial Real Estate; CBRE, Inc. 2017. All rights reserved. 32

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LANSING AT A GLANCE

GREATER LANSING AT A GLANCE Each month, Greater Lansing Business Monthly compiles statistics showing the growth of the greater Lansing area month to month. This information is not comprehensive, but rather, a snapshot of the area’s growth throughout the year. The following is a look at the advances some of Lansing’s biggest businesses have made in the past two months.

MICHIGAN RETAILERS ASSN. INDEX

BUREAU OF LABOR STATISTICS: LABOR FORCE DATA

A monthly gauge of key retail activity in the state; values above 50 generally indicate an increase in activity.

The regular report from the Bureau of Labor Statistics tracking the region's job performance.

Sales Inventory Prices Marketing/Promotion Hiring Plans

Feb. ‘17

Jan. ‘17

Dec ‘16

Nov. ‘16

Feb. '16

52.8 59

40.5

55.7

58.7

47.5

55.7

51.4

Civilian Labor Force (1)

(P)251.8

59.2

52.7

53.3

49.5

51.3

46.6

Employment (1)

60.6

59.4

55.9

56.5 50.6

50.7

48.4

52.8

Values above 50 generally indicate an increase in activity

Feb. ‘17

Jan. ‘17

Dec ‘16

Nov. ‘16

Feb. '16

250.4

(P)245.4

250.5

249.04

(P)240.9

239.6

(P)237.3

242

240.1

Unemployment (1)

(P)10.9

10.8

(P)8.2

8.5

9.2

Unemployment Rate (2)

(P)4.3

4.3

(P)3.3

3.4

3.7

BUREAU OF LABOR STATISTICS: WAGE & SALARY

KEY STOCKS — MONTH-END CLOSE

The regular report from the Bureau of Labor Statistics tracking the region's job performance.

A report on price changes for key local stocks and others that reflect the health of the region's economy.

March ‘17

Feb. ‘17

Jan. ‘17

Dec. ‘16

March '16

Spartan Motors

6.65

7.90

9.25

3.95

General Motors

35.36

36.84

36.61

34.84

31.43

Emergent BioSolutions

29.04

31.38

30.27

32.84

34.33

Neogen

65.55

64.86

66.74

66.00

50.35

Gannett (Lansing State Journal)

8.38

8.72

9.62

9.71

15.14

Gray Broadcasting (WILX)

14.5

13.6

11.85

10.85

11.72

35.8

14.01

18.83

16.31

4.4

Media General (WLNS)*

n.a.

2.7 2.9

Bank of America

23.59

24.68

22.64

22.10

13.52

UPS

107.3

105.76

109.13

114.64

105.47

Home Depot

146.83

144.91

137.58

134.08

133.43

Kroger**

29.49

31.8

33.96

34.51

38.25

Macy's Inc.

29.64

33.22

29.54

35.81

44.09

Wal-Mart Stores

72.08

70.93

66.74

69.12

68.49

Feb. ‘17

Jan. ‘17

Dec ‘16

Nov. ‘16

Feb. '16

(P)234.1

232.8

235.2

238.5

229.5

12-month % change

(P)2.1

3.4

2.2

2.9

2.2

Mining, Logging & Construction (3)

(P)6.5

6.5

6.8

7.3

6.2

12-month % change

(P)4.8

3.2

4.3

3.3

Manufacturing (3)

(P)20.4

20.8

20.9

19.9

12-month % change

(P)2.5

9.5

5.6

6.6

3.6

Trade, Transportation & Utilities (3)

(P)36.4

37.1

38.1

37.9

12-month % change

(P)1.7

3.1

2.4

Information (3)

(P)2.9

2.9

Total Nonfarm (3)

12-month % change

(P)-3.3

Financial Activities (3)

(P)15.9

15.9

16.1

15.6

12-month % change

(P)1.9

1.9

1.3

Professional & Business Services (3)

(P)22.1

22.3

22.5

22.4

12-month % change

(P)-1.3

1.4

-0.5

0.4

1.8

Education & Health Services (3)

(P)32.5

32.2

32.6

31.6

12-month % change

(P)2.8

2.5

3.2

4.2

2.9

Leisure & Hospitality (3)

(P)19.9

19.8

19.7

19.8

18.3

12-month % change

(P)8.7

9.4

4.2

5.9

Other Services (3)

(P)10.3

10.3

10.4

10.1

12-month % change

(P)2.0

3.1

Government

(P)67.2

65.7

68.2

66.4

(P)1

1.6

1.1

1.5

1.1

12-month % change

(1) Number of persons, in thousands, not seasonally adjusted. (2) In percent, not seasonally adjusted. (3) Number of jobs, in thousands, not seasonally adjusted. See About the data. (P) Preliminary

G R E AT E R L A N S I N G B U S I N E S S M O N T H LY

*Nexstar acquired Media Genera in January; **Adjusted for stock split

TRI-COUNTY HOUSING STATISTICS Source: Realtor.com research, March 10, 2017

Ingham

Clinton

Eaton

Homes for sale

1,441

390

602

Homes for rent

155

Median listing price

119,000

$182,000

$145,000

Price per square foot

$70

$85

$74

Median closing price

$130,000

$107,000

$158,000

Median days on market*

Percent change*

-6

-26

-33

*Includes only single family homes and condo-townhomes, excludes pending listings

M AY 2 0 1 7

LANSING AT A GLANCE

EATON COUNTY WORKPLACES AND WAGES Source: Bureau of Labor Statistics quarterly Census of Employment and Wages

Number of Workplaces

June '16 Employment

Total 2nd quarter wages*

Average Weekly Wages

Total, all industries

1,756

36,326

$384,643,056

$845

Service providing

1,462

27,989

$259,045,446

$722

Goods producing

294

8,337

$125,597,610

$1,307

Natural resources and mining

118

$1,022,843

$645

Construction

180

1,575

$19,151,583

$980 $1,407

Manufacturing

6,644

$105,423,184

Trade, transportation, and utilities

413

11,465

$104,195,014

$716

Information

650

$8,598,020

$1,032

Financial activities

175

3,886

$56,854,833

$1,140

Professional and business services

249

3,168

$27,550,112

$665

Education and health services

203

3,545

$31,365,005

$677

Leisure and hospitality

175

3,662

$13,101,602

$280

Other services

205

1,534

$16,749,291

$855

Unclassified

$631,569

$626

CT NE I O

CON

*In millions

D COF

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MAY 2017 MAY 2 HUMAN RESOURCE RECORD KEEPING, LANSING It’s crucial employers understand the complex world of maintaining and reporting employment related records and the laws that govern this record keeping. This comprehensive, one-day seminar will guide you through the steps of properly managing, organizing, retaining and disclosing employment records, including what format and for how long. There will also be in-depth coverage of personnel records/files, paper vs. electronic storage and retrieval and what reports must be maintained and/or submitted to government enforcement agencies. This seminar is from 9 a.m. to 2 p.m. at the Michigan Chamber of Commerce. Cost of attendance is $295. Visit michamber.com for more information and registration details.

MAY 3 CYBER SECURITY EVENT, LANSING Cyber security has especially been highlighted in the past few years and it’s more important now more than ever. It’s important that everyone is aware of these threats that can impact your business and the legal ramifications of inaction. Join Foster Swift Collins & Smith PC and Application Specialist Company for this eye-opening seminar that will leave you feeling more secure in the security of your company. This seminar is from 7:45 to 11 a.m. at The James B. Henry Center for Executive Development. Visit eventbrite.com to register and find more information.

MAY 3 HIRING SALESPEOPLE: FINDING A “HUNTER” ‘Hunters’ are those salespeople that make new business happen, but finding them can be daunting. This 60-minute webinar will dive into how to find hunters, what to look for and how to attract them to your business. This webinar will also explore why salespeople fail and what you can do about it. The webinar will take place from 10 to 11 a.m. and is $75 for chamber members and $95 for non-members. Visit michamber.com to register and find more information.

MAY 4 FRONT DESK SAFETY & SECURITY, EAST LANSING Prevent workplace violence, handle emergencies and be prepared for any situation with this 36

critical workshop. The employee working at the front desk assumes a variety of roles during the workday such as gatekeeper, communications expert and the face of the company. When you’re the eyes and ears of any organization it’s important to be able to spot potential danger by identifying red-flag behavior. This seminar will explain how to evaluate visitor access and increase security, learn the best responses to a variety of emergency situations from bomb threats to medical emergencies and defuse angry, out-of-control visitors to name a few. Check-in for this seminar is at 8:30 a.m. at the Kellogg Hotel & Conference Center. Visit events.careertrack.com for more information and to register for this seminar.

MAY 4 CADL BUSINESS LIBRARIAN AT SBDC: MARKET RESEARCH, LANSING Gain assistance with market research, business databases and more from CADL’s Business Librarian. Learn about top market research tools, understanding your competition, your market size and the best place to locate your business. This seminar will be held at the Small Business Development Center, 309 North Washington Square #115 from 9 to 11 a.m. Visit cadl.org to register.

MAY 5 MAY WAKE UP OLD TOWN, OLD TOWN Wake Up Old Town is a free and informal networking opportunity for professionals from all over Lansing. Come together and share your big ideas and opportunities to help businesses and Old Town thrive. Wake Up Old Town is held on the first Friday of each month at rotating locations around Old Town. This month the meeting will be held from 8:30 to 10 a.m. at The Grid, 226 E. Grand River Ave. Visit iloveoldtown.org for more information.

MAY 9 BIG DATA AND HADOOP TRAINING, LANSING This online big data course will prepare you for the Cloudera CCA175 certification with simulation exams and real-life projects on CloudLabs. The Cloudera certification is the most sought after big data certification in the industry. This class will ensure you master the concepts of the Hadoop framework, learn to write complex MapReduce programs, learn about Spark SQL, Graphx, MLIB, describe how to infest data using Sqoop, Flume and more.

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Find more information and register online for this course by visiting eventbrite.com.

MAY 10 LEADERSHIP, TEAM BUILDING AND COACHING SKILLS FOR MANAGERS & SUPERVISORS, EAST LANSING Learn what it takes to be a successful leader in any workplace situation. Become more confident with your communication skills, ability to motivate, make difficult decisions and utilize the talent of your team. This seminar will take place at the Kellogg Hotel & Conference Center. Visit events.pryor.com to register and find more information.

MAY 17 – 20 CYBER-SECURITY PRACTICES FOR YOUR WORKPLACE, LANSING Cyber-crime is growing at a tremendous rate and will not slow down anytime soon; these criminals can find ways to get behind your firewalls, initiate phishing attacks and install nasty malware. Learn some surprisingly simple ways to minimize your risk and prevent your organization from becoming a victim. Registration is $75 for chamber members and $95 for non-members. Visit michamber.com for registration and to find more information.

MAY 17 CHAMBER OF COMMERCE DAY, LANSING This one-day event will provide local chamber of commerce executives the opportunity to network with their colleagues from across the state while hearing the latest news from state government and legislative leaders and Michigan Chamber senior staff. Cost for this event, including lunch, is $50 per person. Visit michamber.com for further details.

MAY 19 TEAM CITY MARKET, LANSING Are you passionate about Lansing? Maybe you have some new ideas that would help make this city and its riverfront a more bustling shopping and entertainment hub. If so, join TEAM City Market and meet with other inspired members of the community. Newbies are always welcome! Take out lunch will be available from Waterfront Bar & Grill or you can bring your own. Meetings are from noon to 1 p.m. Stop by lansingcitymarket.com for more information.

One size does NOT fit all. In marketing, there is no onesize-fits-all solution. That’s why, at Reach, we don’t make big promises about using the newest technology. And we don’t believe that shiniest is always best. Instead, we focus on getting to know your business, your customers, and your prospects – then we talk about what it takes to get them through the door. Sound good? Learn more at ExtendYourReach.com.

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a member of the National Ground Water Association and the Michigan Association of Environmental Professionals.

PM ENVIRONMENTAL HIRES FIVE TO ESTABLISH BAY CITY REGIONAL OFFICE PM Environmental, a full-service environmental consulting firm headquartered in Lansing, Mich., is pleased to announce its newest office in Bay City, Mich., located at 4452 Ace Commercial Court. Alan Nicholls, C.P.G. will lead the expansion and oversee the local staff. “The greater Tri-Cities region of Bay City, Midland and Saginaw is an important area of Michigan where PM has an existing client base,” said Pete Bosanic, co-founder and president of PM Environmental. “We are excited to open an office in Bay City that will be staffed with industry veterans from the region who can immediately serve the clients and grow PM’s presence in the area.” The recent addition satisfies PM’s need for increased coverage in Michigan while continuing with the company’s history of consistent and sustained growth. All five employees were long-term staffers of Superior Environmental’s Bay City office.

Local staff includes Melissa Yuvan, William Wagner, III, Jacob Pisarkiewicz and Rosalie Andrzejewski.

Melissa Yuvan, (left) William Wagner and Alan Nicholls are part of the team at PM Environmental's new Bay City office.

Nicholls is a certified professional geologist who has worked in the environmental industry for nearly 25 years. His experience includes staff and project management and corporate planning and negotiation with various clients and state agencies. Nicholls’ background also includes leaking underground storage tank (UST) projects, site investigation and remediation projects and due diligence projects throughout the Midwest. He obtained his B.S. in geology from Lake Superior State University, and is currently

“The Tri-Cities region has a long-term industrial and heavy commercial base that has left a legacy of environmentally impacted properties,” said Bosanic. “PM provides diverse services that include environmental due diligence, Brownfields redevelopment, environmental cleanup, leaking underground storage tank management, hazardous materials (asbestos, lead) assessments and abatement. These diverse services are well suited to handle the types of problems encountered in the region.”

DOBERMAN TECHNOLOGIES LLC MERGES WITH NONIK TECHNOLOGIES INC. As of April 1, Doberman Technologies LLC, a Mason, Mich.-based IT managed service provider, has completed a merger with Nonik

Available Properties 2149 Jolly Road, Suite 200 - Okemos, MI 48864 517.487.9222 - naimidmichigan.com

16945 Marsh Rd., Haslett, 48840

7785 E. Saginaw St., East Lansing, 48823

Call Jim Vlahakis - 517.487.9222

Call Jeff or Dave - 517.487.9222

Williamston Center Rd., Williamston, 48895

1434 Diamond Reo Way, Lansing, 48910

For Lease: Office/Retail $19.00 PSF NNN Approx. 3,000 SF

For Sale: Vacant Land Parcel 1: 4.63 AC - $275,000 Parcel 2: 3.5 AC - $210,000

Call Jeff Shapiro - 517.487.9222

For Sale: Vacant Land $2,575,000 17.74 Acres

For Sale: Warehouse $365,000 5,632 SF

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NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, IS MADE AS TO THE ACCURACY OF THE INFORMATION CONTAINED HEREIN, AND THE SAME IS SUBMITTED SUBJECT TO ERRORS, OMISSIONS, CHANGE OF PRICE, RENTAL OR OTHER CONDITIONS, PRIOR SALE, LEASE OR FINANCING, OR WITHDRAWAL WITHOUT NOTICE, AND OF ANY SPECIAL LISTING CONDITIONS IMPOSED BY OUR PRINCIPALS NO WARRANTIES OR REPRESENTATIONS ARE MADE AS TO THE CONDITION OF THE PROPERTY OR ANY HAZARDS CONTAINED THEREIN ARE ANY TO BE IMPLIED.

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together the needed resources and manpower to better serve our clients. We are taking our service to a new level, to protect our clients against the ever-evolving threats on the internet and help them be successful at what they do.”

Technologies Inc., a Hillsdale, Mich.-based IT management company. The merger brings the Nonik staff, along with their operations in Hillsdale under the Doberman brand. “We’re very excited about the potential to move forward and grow together along with the Nonik team,” said Ian Richardson, CEO of Doberman Technologies. “Nonik has longstanding relationships in the Hillsdale community and is a perfect culture and technological fit with the Doberman team. Together we’re looking forward to reinvesting in the Hillsdale community and continuing to grow alongside the community.” “We have a wonderful group of clients in and around the Hillsdale area and I’m really excited about how this merger will help them,” said Eric Macy, CEO of Nonik Technologies. “It brings

Doberman Technologies focuses on delivering customer-centric, fixed rate IT solutions to solve business problems. More information can be found at dobermantechnologies.com.

ALLEGRA OF OKEMOS EARNS SALES GROWTH AWARD Allegra Marketing — Print — Mail in Okemos was recently recognized for its excellence in sales by Alliance Franchise Brands, a world leader in marketing, print and graphic communications. Owned by Dave Muhleck, Allegra of Okemos earned the monthly award for being the top franchise center in revenue growth within the international network of nearly 250 centers. In fact, Muhleck’s consistent success has led to his recognition for Top 10 Dollar Growth and Top 10 Percent Growth multiple times throughout the past year.

“It’s so gratifying to help local businesses and nonprofits reach their audiences with engaging cross-channel marketing and print communications,” said Muhleck, who has been a leading member of the Okemos area business community since 1990. “We work to be true solution providers and business partners to our customers so they can continue to grow and have a positive impact on our local communities. Without their success and continued support, we wouldn’t be able to receive these kinds of recognitions – we credit our achievements to them.” Allegra is a full-service marketing communications provider offering advanced printing technologies, including full-color offset and digital printing, personalized printing capabilities and mailing services. In addition, it offers graphic design services, marketing consultation, digital color signs, posters and banners, complete finishing services, promotional products and print management solutions. Located at 2863 Jolly Road, Allegra is independently owned and operated. It is a member of the Alliance Franchise Brands network, linking to more than 600 locations in

Be a champion for worksite wellness

Take our online assessment to work toward a healthier workplace. The Designing Healthy Environments at Work wellness tool is a free, best practices assessment that evaluates worksite wellness, identifies areas of improvement and provides the resources to implement change. Take the assessment today at www.mihealthtools.org/work.

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the United States, Canada and United Kingdom. For more information, visit allegra-okemos.com or call (517) 333-0713.

professionals who demonstrate the highest integrity in their profession.

appointed chief judge of the court by the Michigan Supreme Court on Jan. 1, 2016.

During his presentation, Judge Allen said it is a privilege to help others. He spoke to WMUCooley law students, faculty and staff about the importance of values, integrity and preserving one’s reputation.

LANSING ATTORNEY RECEIVES EXCELLENCE IN DEFENSE AWARD

JUDGE DONALD L. ALLEN HONORED WITH WMUCOOLEY LAW SCHOOL’S INTEGRITY AWARD

“It takes years, maybe even decades, to develop a reputation for your integrity, for your professionalism,” Allen said. “It takes years and years of doing the right thing, but it only takes seconds for that to be destroyed.” Allen is the presiding judge of the 55th District Court Sobriety Court, which focuses on the rehabilitation of repeat offense substance abusers in Ingham County. He has spent most of his professional career as an assistant attorney general at the state’s attorney general office.

Judge Donald L. Allen Jr. was recently honored with WMU-Cooley Law School’s Integrity Award. Judge Allen received the award following his keynote speech on March 22 as part of the school’s “Integrity in Our Communities” speaker series. The award is presented to legal

In 2005, Allen was appointed deputy legal counsel to Gov. Jennifer Granholm. The following year, Granholm appointed him to serve as director of the Office of Drug Control Policy, which he served until his 55th District Court appointment in 2008. Judge Allen was

Attorney Scott Mandel is the 2017 recipient of the Michigan Defense Trial Counsel’s prestigious “Excellence in Defense Award.” The award, established in 1992, honors those who have promoted the practice of the defense bar and the representation of their clients through professionalism and advocacy beyond their normal roles as an advocate. The award was presented to Mandel at the Michigan Defense Trial Counsel’s First Annual Legal Excellence Awards on March 9 at the Detroit Historical Museum. Mandel concentrates his practice in complex litigation, including governmental entities and large corporations. Mandel has tried approximately 100 cases in state and federal courts and before agencies including the Federal Trade Commission, the Department of Financial and Insurance Services and the Bureau of Health Services. He is a past board member of the Michigan Defense Trial Counsel. Foster Swift Collins & Smith, PC is a full-service law firm founded in 1902. The firm employs 98 attorneys and over 100 support staff in six locations; Lansing, Detroit, Southfield, Grand Rapids, St. Joseph and Holland. For more information, visit fosterswift.com.

WMU-Cooley Law School Associate Dean and Professor Michael C.H. McDaniel (left) honors Judge Donald L. Allen Jr. with the Integrity Award, presented to legal professionals who demonstrate the highest integrity in their profession.

INGHAM COUNTY AND CITY OF LANSING CELEBRATES NATIONAL SERVICE MEMBERS City and county officials came together on April 4 for Mayor and County Recognition Day for National Service to celebrate Ingham County’s national service members who contribute thousands of hours of service annually. 40

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The event was hosted by the Power of We AmeriCorps programs at the Michigan Historical Center located at 702 W. Kalamazoo Street in Lansing. Ginna Holmes, executive director of the Michigan Community Service Commission and Debbie Edokpolo, Ingham County deputy health officer, were among the speakers.

Lansing Food Bank, Allen Neighborhood Center, Greater Lansing Housing Coalition, Lansing Promise, the Michigan Nonprofit Association, Michigan’s Campaign to End Homelessness, the Community Economic Development Association of Michigan, Habitat of Michigan, Peckham, Senior Corps and many more.

“AmeriCorps members have positive and lasting impacts. Their contributions are critical to addressing some of their community’s greatest challenges, issues like literacy, homelessness, access to care and public safety,” said Ingham County health officer Linda S. Vail. “This event gave us a chance to thank AmeriCorps members for the work they do in Ingham County.”

WKAR EARNS MULTIPLE BROADCAST EXCELLENCE AWARDS

The Power of We Consortium, a program within the Ingham County Health Department, currently manages both an AmeriCorps State and an AmeriCorps VISTA program. Each has over a dozen projects. There are 38 members combined. AmeriCorps members commit to either a full or half year of service. They receive a living stipend during their service as well as other benefits including an education award upon completion of the program. Local organizations hosting or managing AmeriCorps members include the Greater

WKAR Public Media at Michigan State University was honored with multiple awards from the Michigan Association of Broadcasters at the Broadcast Excellence Awards 2016 ceremony on March 8 in Lansing, Mich. Across WKAR-TV and WKAR-FM 90.5, the stations earned seven Best in Category awards and five Merit awards. More than 950 entries from 87 Michigan stations and companies were judged this year by members of the Illinois Broadcasters Association. “I hope I can speak for our amazing, dedicated team when I say it’s gratifying and rewarding to be honored like this by our peers in the industry,” said Susi Elkins, MSU director of broadcasting and general manager of WKAR. “Our viewers and listeners expect that they can always turn to

WKAR for quality programming that tells the stories and explores the issues that matter in their community, and these awards provide just one measure that signals that we are doing our job.” In the Public Television division, the WKAR Best in Category awards were for: • Cultural and Performing Arts: BackStage Pass — Toronzo Cannon • Independent Producer: Invisible Wounds • Marketing Materials and Promos: WKAR Sizzle Spot 2016 • Membership Appeal: Sunday Dramas — Tim Busfield • Special Interest Programming: Faces of Flint The TV Merit awards were for: • Cultural Programming: Forte — Mason