G R E AT ER LANS ING
SEPTEMBER 2016
CONSTRUCTION: THE OVERLOOKED NATIONALLY COMPETITIVE INDUSTRY Glenn Granger and other experts explain industry’s success
IN THIS ISSUE •
LANSING'S COFFEE SCENE CONTINUES TO BLOOM
•
MACHELLE A. MCADORY: A CLOSER LOOK AT HUMAN RESOURCES AND LEADERSHIP
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G R E AT E R
L A N S I N G
BUSINESS MONTHLY
SEPTEMBER 2016 ON THE COVER Lansing's Coffee Scene Continues to Bloom.............................................................................6 Machelle A. McAdory: A Closer Look at Human Resources and Leadership.....................................14 Construction: The Overlooked Nationally Competitive Industry....................................................................22
NEWS Pokémon Go and the App Industry ........................................8 New Building, New Goals...........................................................10
G R EAT ER L AN SI NG
SEPTEMBER 2016
22 FEATURE
Commentary.................................................................................................................................................. 4 HR and the Affordable Care Act — Know the Facts............................................................... 12 Visual Breakdown..................................................................................................................................... 16 Greater Lansing at a Glance ............................................................................................................... 18 Real Estate .................................................................................................................................................. 20 Economy ...................................................................................................................................................... 28 Business Calendar.................................................................................................................................... 30 Man on the Street ................................................................................................................................... 32
CONSTRUCTION: THE OVERLOOKED NATIONALLY COMPETITIVE INDUSTRY
Careers ...................................................................................................................................................... 33 Notable News ............................................................................................................................................ 34
Glenn Granger and other experts explain industry’s success
IN THIS ISSUE •
LANSING'S COFFEE SCENE CONTINUES TO BLOOM
•
MACHELLE A. MCADORY: A CLOSER LOOK AT HUMAN RESOURCES AND LEADERSHIP
Cover photography by Erika Hodges
CORRECTION In last August’s issue of Greater Lansing Business Monthly, in our Visual Breakdown column, we printed that Dental Hygienists average pay in Michigan is $162,000. This figure was provided by indeed.com and was incorrect. We apologize to you, our readers, for providing the wrong information and Greater Lansing Business Monthly would like to assure our audience that we are working hard to provide the most current, up-to-date, and correct information that we can.
Greater Lansing Business Monthly | Volume 29, Issue 6
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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
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
SEPTEMBER 2016
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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 Media Specialist: Jill Bailey Account Managers: Manny Garcia Megan Fleming Austin Ashley Derek Drumm Production Director: Kelly Mazurkiewicz Art Director: Mark Warner Communications Director: Ami Iceman-Haueter Graphic Designers: Nikki Nicolaou Kerry Hidlay Photographer: Erika Hodges Editor: Megan Martin Web Manager: Skylar Kohagen Event Calendar Manager: Jaime Hardesty
GLBM Editorial Board: April Clobes — President and CEO, MSU Federal Credit Union Trish Foster — Senior Managing Director & COO, CBRE|Martin Lisa Parker — Director of Alumni Career and Business Services, Michigan State University Alumni Association Deb Muchmore — Partner, Kandler Reed Khoury & Muchmore
FEEL THE SURGE T
here’s no doubt that there’s an energy surging in the Metro Lansing area. I can feel it. Can you? Just a few years ago, there were many businesses hanging on by their fingernails. But now, Lansing has large (and small) investments in a multitude of developments across the region. According to The American Spectator, after adjusting for inflation, Michigan’s economy grew at an average annual rate of 2.1 percent between 2011 and 2014. This was faster than the U.S. average of 1.9 percent. As the economy grows and the unemployment rate drops (an overall good indicator), it also creates issues for those trying to grow. It’s getting tougher to find qualified employees in many areas, especially high tech, and because of the scarcity, salaries are increasingly putting a burden on smaller companies. And, with new regulations regarding overtime, small businesses understandably are shifting focus onto human resource issues. However, the issues faced by most industries could be considered a cakewalk next to the construction and trades industry. They have been decimated by a lack of talent. Young people aren’t entering into the trades at an equivalent rate with increased demand. As I began the process of renovating my new building, it became apparent that seeking a contractor could pose a problem, especially if I needed it done posthaste. I heard from more than one person that finding someone to work on updates or renovations could take a while and, because of supply and demand, we were at the top of the market. My project is quite small in comparison to many others so I don’t have as much to worry about. Some of the larger projects might take longer and cost more due to a talent shortage. Luckily, we have bigger companies like Christman, Clark, Granger and Wieland to keep Lansing’s major projects moving. I’m sure they still struggle to recruit talent. The really good news is that if you’re interested in learning a trade or working with your hands, there are opportunities and apprenticeships available. This is an industry where jobs will be plentiful in the coming years and the ability to make high wages is great. To learn more about training programs, Capital Area Michigan Works! is a great place to start. Be proud of our region. Big things are happening and there is a lot of opportunity.
Tom Ruis — Vice President, Fifth Third Bank Doug Klein — Executive Director, Mason Area Chamber of Commerce Mark Hooper — Partner, Andrews Hopper Pavlik Tiffany Dowling | Publisher
Diontrae Hayes — Supervisor Charter Township of Lansing
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Jared Field, CEO and co-founder of Bloom
BLOOM COFFEE ROASTERS BREWS IN OLD TOWN BY AMANDA DENOMME
Good coffee is no stranger to Lansing thanks to Paramount Coffee and Biggby Coffee dominating the Michigan coffee scene. Now, Bloom Coffee Roasters in Old Town has been added to the allstar roster since the opening of its café at 1236 Turner St. this past July. CEO and co-founder of Bloom, Jared Field, began the company as a wholesale micro-roaster in April 2014, and after spending a few years learning about the coffee industry and the roasting process, he decided to bring a third wave micro-roaster to Lansing. According to Field, being a coffee roaster is a fulfilling experience because he gets to “connect with customers through the flavor of their souls.”
WHY OLD TOWN Described by others as an “old soul,” the Kalamazoo native discovered he wanted to open a location in Lansing after visiting the area with his father, and learning about the deep coffee roots that lie within the city. “Lansing has always been a well-developed coffee town; with Paramount and the Biggby chain both playing a huge role in creating a coffee culture here,” said Field. “With those two companies creating a strong foundation, I saw the need for a more focused approach to coffee in Lansing, and we feel that we couldn’t have picked a better time.”
The connection between Field and his customers seems to be a two-way street, because within the first two weeks of the café’s grand opening, Bloom pulled average sales of $4,500 per week and about $2,000 per week on the wholesale roasting end. The café offers the standard coffee menu that can be served hot or cold including, pourover coffee, espresso, lattes, cappuccinos, Americanos and mochas. In addition to coffee, the company also sells Cascara Tea and soda, beans for retail and baked goods from local stores including Groovy Donuts of Williamston and Glory Bee’s Sweet Treats of Mason. Since opening Bloom’s café, the company has created 6
When choosing to open his roastery in Old Town, Field found it was the “sense of life and spirit that breathed into Old Town” that made him want to be a part of this area. Also, the artistry elements and history of the town captivated him.
partnerships with The Cosmos, Old Town General Store, Urban Beat and Ozone’s Brew House, while also providing coffee to ‘Wake-Up Old Town’ on the first Friday of every month.
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“Old Town is a very artistic community and viewing coffee as our art form makes it incredibly easy to relate to the culture of Old Town,” said Field. “The spirit here definitely fuels our fire to excel and be great at what we do, while trying to stay relevant in a rapidly changing community. To me, Old Town is the best part of Lansing. The energy here is incredible.
NEWS
People are definitely coming to Lansing from all over to see what Old Town has to offer.” The Old Town Commercial Association also believes the café is making a great impression on Old Town, as they are finding that Bloom is attracting both Old Town residents and visitors from outside the greater Lansing area. “The café at Bloom has been a tremendous addition to the Old Town neighborhood. As a gathering place for the public, Bloom is epitomizing what Old Town stands for — community interaction,” said Vanessa Shafer, executive director of the Old Town Commercial Association. “It is a place where both our residents and our growing number of visitors can engage with each other while enjoying a product made with Old Town pride.” BRINGING THE THIRD WAVE OF COFFEE TO LANSING Third wave coffee is considered an art form, much like wine and microbrews. The process of creating a third wave of coffee involves many stages from production and processing to building strong relationships between growers, traders and roasters. All of these stages must be completed precisely in order to provide high quality coffee to its customers. At Bloom Coffee Roasters, Field sources the coffee beans through two companies - Café Imports in Minneapolis, Minn. and Bodhi Leaf in Oakland, Calif. Using a Victory roaster, the roasting process takes between 11 to 15 minutes per batch. The team can roast a maximum of four pounds at a time, where beans vary between 400 and 420 degrees at their end temperature. Field estimates they roast about 200 pounds each week. PURGING COFFEE STEREOTYPES Today, no longer are we seeing the ‘hipster’ stereotypes associated with coffee drinkers. Field also has experienced this market shift with his café customers; finding that he cannot specify just one type of customer at Bloom as they are connecting with a very diverse market each day. “We deal with all walks of life. The other day, a little girl, probably no older than five years old, walked in by herself while her parents waited outside. She ordered a hot chocolate and had questions to ask about other drinks on our menu,” said Field. “It was awesome that we could connect with someone of that age who was seriously interested in what we are doing. Our menu is simple but it’s also very diverse, and that’s what is bringing people to our café.” With the evolution of the coffee scene, Field knows that it is important to market accordingly, and with
coffee always trending through social platforms, he knew capturing the online scene was the correct way to go about their marketing strategy.
"THE SPIRIT [IN OLD TOWN] DEFINITELY FUELS OUR FIRE TO EXCEL AND BE GREAT AT WHAT WE DO ..."
The hashtags, #KnowYourRoaster and #KnowYourBarista are added to every social media post from Bloom Coffee Roasters; where the idea behind these hashtags are to get customers talking, and for them to feel a part of the third wave coffee movement. “We want to make everyone who comes into our café feel comfortable when asking questions about coffee, or to tell us about their day or some significant event taking place in their lives,” said Field. “These hashtags do just that, and we really want to connect with people on a higher level than your average café.” LOCATION AND CAFÉ HOURS Bloom Coffee Roasters is located in Old Town at 1236 Turner St. The café is open Tuesday through Sunday from 7 a.m. – 7 p.m., and is closed on Mondays for roasting. According to Field, menu item favorites include any of the pour-overs and the lavender latte. Bloom cycles through its coffees each week, offering two single origins, one blend and one decaf, so that
Jared Field, CEO and co-founder of Bloom
customers will always find something different and will be able to inquire and connect with their coffee tastes. “We know that if we can accomplish a deep connection with our customers, we can help establish a better quality of life,” said Field. “Not only for people in our community, but in coffee farming communities all over the world.” Amanda has been a freelance writer for the past 5 years, covering arts and entertainment in West Michigan and Lansing. Describing herself as a shoe & fashion enthusiast, Amanda loves attending Broadway shows, dancing, and keeping up with the latest reality T.V.
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POKÉMON GO AND THE APP INDUSTRY How Apps are Changing the Business Community BY ALLISON SPOONER
From checking emails and playing games, to finding a date or a place to live - it’s common knowledge that if you need to get something done, “there’s an app for that.” Given that there is an app for almost anything you may need to do, it’s no surprise that the app industry is projected to be a $77 billion industry by 2017, according to Entrepreneur Magazine, and according to VentureBeat, it could hit $101 billion by 2020. And, according to Business Insider, it’s a bigger industry than Hollywood. That same Entrepreneur article by Catherine Clifford, noted that right now, “the average mobile app user spends more than 30 hours a month on more than two dozen apps.” The best example of the boom that is the app industry is a game that exploded as soon as it was released. The introduction of Pokémon Go, an interactive game featuring augmented reality where you hunt and catch different types of creatures called Pokémon, has brought even more attention to an industry that was already booming before its introduction. It has shed light on an economy that is growing, sometimes a little volatile, and is apparently here to stay. UNPREDICTABILITY OF APPS The app industry is very different from other industries and the emergence and journey of 8
Pokémon Go is a testament to that. The craze surrounding Pokémon Go, even though it may be just a game played for fun, shows just how precarious, unpredictable and exciting this relatively new industry can be. Only a week after its launch, Pokémon Go had been installed on twice as many phones as Tinder, doubled the engagement of Snapchat and surpassed Twitter’s daily users by far. In contrast to the traditional business world, where it can be hard to break into an already established market with a new idea, name or business, the sudden onslaught of Pokémon Go users shows that in the app industry, it’s anyone’s game. No one would have guessed that a game pandering to the latest surge of 90s nostalgia would knock mobile app veterans, like Twitter and Snapchat, off the mobile app throne. But in this industry, anything is possible, and being well-established means nothing as users are always looking for the newest thing – there is always room for a rookie to tip the scales. As users continue to look for what’s new and exciting, even the apps that come on strong have to continue to evolve to keep users happy. Despite the large number of downloads, the current challenge is to keep users playing. And that’s the case with every app that hits the market. The Washington Post reported that John
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Hanke, chief executive officer of the game’s developer, said that the company has only put in “probably a tenth” of the features it has imagined for the game. The company is already planning to add features such as one that will allow users to trade Pokémon. These improvements and additions are an important part of creating an app, as demonstrated by the fact that the numbers for Pokémon Go users, despite it’s amazing start, are already starting to even out. With an explosion of downloads and usage in the first week, the numbers are showing limited growth. A MARKETING TOOL FOR BUSINESS Whether it’s a passing fad, a “here today, gone tomorrow” app, the fact is, it’s driving traffic into businesses. It’s helping businesses make money and if it’s not Pokémon Go doing it tomorrow, it will most likely be another app. That’s what a great app does and it’s the reason why, early this year, Forbes released an article from contributor Scott Shane stating that “smartphone apps have become too important [of] a marketing tool for small business owners to do without.” Given that Americans now spend more time looking at their mobile phones than they do watching television, a snazzy new commercial
NEWS
just isn’t going to cut it when it comes to driving business. According to Jesse Flores, the owner of local web development company, SuperWebPros, “The mobile ecosystem is now how most people access the Internet most frequently.” Yet, in a study Flores performed last summer, over 64 percent of local business websites failed Google’s Mobile-Friendly Test. “From what I’ve seen, many businesses aren’t optimizing their websites for mobile, let alone investing in mobile apps. But they should be investing in mobile channels if they want customers because that’s where the customers are.” Whether they have their own app, or piggy back off of the success of another app, the app industry is affecting businesses, whether they like it or not. Leo Dion, owner of the local mobile app development company BrightDigit, agrees, “There are many benefits to having a mobile app over just a mobile website,” he says. “A mobile app will be able to take advantage of features such as GPS, notifications, motion detection and other hardware specialized for
certain smartphones. Not only will the app be better supported by the software on the device, but [businesses] will be giving [their] customers a better experience.” A GROWING INDUSTRY As more and more businesses come to terms with the fact that they may need an app, the industry continues to grow. In order to give small businesses the best chance at building an app that works for them, new app development companies emerge every day, adding jobs to the job market and boosting the economy, contributing to the $101 billion that was mentioned earlier. Another unique aspect of the app industry, compared to its more traditional counterparts, is the way this industry is revolutionizing other industries. Pokémon Go shows the way it’s changing the gaming industry, getting players outside, moving and interacting rather than hiding in basements glued to screens, but it’s left its mark on other industries as well. It’s disrupted the taxi industry (which has been around for 100 years) with the introduction of Uber. It’s completely changed the way we date, bank, and connect, and even track our health. New devices that rely on apps, like the Apple Watch, hit the
market every day and it’s even changing the education industry, as there is more demand for coding and software knowledge. So, whether businesses choose to take advantage of the ways Pokémon Go can bring in customers to their business, or choose to create their own app, it’s pretty safe to say that apps are here to stay and the industry doesn’t show any signs of slowing down. To learn more about how Pokémon Go is bringing people and businesses together, visit lansingbusinessnews.com/business-newstoday/2016/07/pokemon-go-bringing-people-andbusinesses-together. Allison Spooner is a freelance, content wizard. She writes content that helps businesses in Lansing and beyond tell their stories, educate their customers, and promote their brands. She is the Content Manager at StartupLansing, an online publication about startup activity in Lansing, regularly contributes to Capital Gains and loves helping businesses bring their words and ideas to life. To follow her writing journey and see a list of her professional content services, visit her website at theresistantwriter. com or find her on twitter at @allyspoon.
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FEATURE
NEW BUILDING, NEW GOALS BY AMI ICEMAN-HAUETER
Lansing’s full-service branding and publication agency, M3 Group, is taking the next step to expand its footprint in mid-Michigan. Founder and CEO, Tiffany Dowling and her team will soon renovate a church built in 1892 and make the corner of Seymour Avenue and Saginaw Street in downtown Lansing their new home. Dowling, who started the company more than 14 years ago, has grown the organization into a large and respected agency in the area. Now staffing 25 full-time employees, the entrepreneur has big dreams for what’s next for her organization. “When I started this adventure 14 years ago, I wanted to make a difference for businesses in our community,” Dowling said. “Now it’s time for us to move into a bigger space and continue to grow our amazing team so we’re able to do more around the state and beyond.” M3 Group was founded in 2002, when Dowling set out to provide creative, reliable and effective marketing services to the greater Lansing area. 10
The M3 Group team has expanded significantly over the years and now offers clients a full array of services including: public relations, communications, brand creation and assessments, graphic design, website development, campaign development and implementation, social media management, video production, audio production, event planning and management, and media planning and buying. In addition, M3 Group is publisher of three area magazines: Capital Area Women’s Lifestyle Magazine, Greater Lansing Business Monthly and ing Magazine. With a growing need for additional staff, M3 Group’s current space is shrinking faster than ever. “M3 Group’s growth has been exciting. We’ve added new departments and mediums to offer our clients the best results-driven solutions possible, but with growth always comes a few small challenges, in this case two buildings,” Dowling said. “This new building will bring our team together in a whole new way and I am excited to see the team’s synergy and creative capacity when we are all under one roof.”
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Currently, M3 Group occupies five floors split between two side-by-side Victorian houses on Seymour Avenue in Lansing. Dowling had been considering a move to unify her team for over a year and was set on staying in the downtown Lansing area. With the support of CBRE|Martin, Dowling considered numerous properties in the area before finally deciding on the first property she viewed, the church only a hundred feet from the current M3 group offices. “CBRE|Martin was thrilled to assist M3 Group with the site selection process. That involved a client debrief, review of goals and objectives for the company now and in the future and the physical space needs of M3 Group that would complement their overall business platform. Staying in Lansing was important to M3 Group and after an exhaustive search, Tiffany decided on the first property,” said Senior Managing Director and Chief Operating Officer at CBRE|Martin, Tricia Foster. The due diligence phase of the process began immediately. Dowling worked with the City of
NEWS
Lansing and Lansing Economic Area Partnership (LEAP) to explore options and incentives that would make completing the project possible while adding value to the community as a whole. “Tiffany had some great expansion ideas for her business and a possible property identified and that is when LEAP engaged with her and her staff. We offered information on what she could get, ideas to consider, likely problems she may encounter and the way we could help her,” said President and CEO of LEAP, Bob Trezise. “So we went through the process and determined the property ‘as-is’ is obsolete and on a major corridor in the city. For those reasons, we wanted to work with the Mayor and City Council to take advantage of opportunities that would help tackle a costly project like this so that M3 Group could continue to succeed as a business and continue to grow in the future,” he added. The old brick church that will soon be M3 Group’s office was previously owned by Hay & O’Rourke Law Firm and had been designed to meet the law firm’s needs, but does not currently suit the needs of the creative agency. Dowling and a team of experts will work to reinvent the space, creating an open, airy, creative place where she and her team can move freely with plenty of room to grow. Modern furnishings, glass walls and additional work stations will complete the space.
hopes to be in the building in early 2017. Although this move is a big step for the organization, it is only just the beginning of Dowling’s new goals for the organization. “I am a huge admirer of M3 Group. I know that Tiffany has worked day and night and weekends to take M3 Group from a small idea to one of the region’s most important multi-media agencies,” Trezise said. “She is a perfectionist and that shows through all of the
different products that M3 Group is providing. Everything M3 Group produces reflects her attitudes and beliefs and we were happy to be able to help Tiffany realize the next step for her exceptional organization.” Ami Iceman-Haueter is the Brand Manager at M3 Group. IcemanHaueter is a graduate of Michigan State University with a bachelors in creative advertising.
“A big part of M3 Group is teamwork and collaboration, so I want to create a space where we can all be together but still have places where smaller groups or individuals can break off if needed,” Dowling said. “I want our clients to feel comfortable and I want my employees to be proud to come in to work each day to a space that meets their needs.” Dowling will add additional space to the more than 8,000 sq. ft. property by potentially adding a mezzanine and upgrading the garden level to accommodate more working space. Dowling is working with the architects and contractors to conceptualize the space to make sure there is room for expansion and growth among her team, and to include a few added benefits like an event space and a photography studio. “It ends up being about strategy and growth. It is an investment in the future and will offer M3 Group’s team synergy that the current two locations don’t afford at this time,” said Foster. M3 Group closed on the property in mid-July and the estimated budget for the project is $625,000. The creative team L
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FEATURE
HR AND THE AFFORDABLE CARE ACT — KNOW THE FACTS BY MICKEY HIRTEN
The Affordable Care Act is six years old and for small businesses in particular, it continues to challenge the Human Resource administrators who oversee their company’s healthcare benefits.
The Affordable Care Act requires that most Americans have adequate health insurance and businesses with more than 50 employees offer their full-time employees and dependents affordable and comprehensive coverage.
The landmark legislation, passed in 2010, phased in coverage and reporting requirements, first for large businesses, then adding small and smaller businesses. “One of the difficult things about the Affordable Care Act is that it’s gone through so many changes in the past years. It makes adapting to the law so much more difficult.” said Greg Brogan, managing agent at Brogan, Reed, Van Gorder & Associates, which provides health related legal, compliance and reporting services to its clients. Even for businesses that offered comprehensive healthcare benefits prior to the Affordable Care Act, compliance with the Act and its related reporting requirements, was taxing. For small businesses, where an owner or a manager often handles HR as one of many tasks, dealing with the Act is even more challenging. “There are still a majority of small businesses out of compliance with the legislation. The penalties are enormous. For non-compliance plans, its $100 per day per employee. A company with 15 or 20 employees could end up with a six figure fine and that’s even if they are offering their workers a good plan,” said Brogan. “The question is how hard the government is going to come down on those who haven’t dotted the i’s and crossed the t’s.” The Affordable Care Act requires that most Americans have adequate health insurance and businesses with more than 50 employees offer their full-time employees and dependents affordable and comprehensive coverage. Another goal of the legislation was to reduce the nation’s overall healthcare spending. To ensure that businesses fulfill the Act’s requirements, they are required to evaluate the pay and hours worked by employees and produce reports for the government and for the workforce detailing the benefit. All of this is affected by such factors as available private and public health insurance plans, subsidies, taxes, insurance exchanges and more. 12
“When you consider all of the new things that have to come from a compliance standpoint, the question is whether an HR department is robust enough to take on and learn all of the requirements,” said Michael Guess, vice president of sales at Shinberg Insurance. His company creates plans and provides services to help businesses with the Affordable Care Act. For large companies, the Affordable Care Act is now an accepted part of the HR landscape. At Emergent BioSolutions Inc., a company that employs over 1,000 workers, many of them at its Lansing production facilities, the Affordable Care Act has added additional administrative burdens and reporting requirements, according to Vice President, Compensation, Benefits & HRIS, Mary Comfort. “For large companies that already offer comprehensive plans, where the programs met the legal requirements for delivering essential coverage, the Act was not as large of an issue,” Comfort said. “We have the resources in place to respond.” For Emergent, there were very few plan design changes needed to meet the new standards. “I think the benefits we offer are a stronger package than what someone could find if they went to the public exchanges,” Comfort said. Because Emergent has mostly full-time positions, it avoids the difficult issue facing other businesses that must determine whether part-time and seasonal workers meet the threshold for healthcare coverage. Undertaking this analysis and navigating the maze of rules and regulations associated with the Affordable Care Act and producing the
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internal and external reports is the HR niche filled by companies like Shinberg and Brogan, Reed, Van Gorder & Associates. Brogan noted that businesses with 30 to 70 employees are likely to have an employee with HR training and awareness of changes in the law. But even then, and certainly for even smaller businesses, the entire process can be overwhelming and distracting to the core business. He cited restaurants, which often have many part-time workers, as an example of businesses that struggle to adapt their operations to the Act, particularly the requirement that mandates healthcare based on an employee’s hours worked and wages. Wages for the wait staff are often well below the minimum because their pay is supplemented by tips. But not all tips are reported, Brogan said, and hours may be difficult to calculate in a business where workers swap shifts or work unscheduled hours during busy times. It is left to the owner or manager to untangle the wage and hour accounts and determine who meets the 30 hours a week threshold for benefits. He said similar problems exist in the retail and hospitality industries. “There are probably thousands of employers who chose to stick their head in the sand or didn’t have the wherewithal to gather the data,” Brogan said. 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.
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BY MICKEY HIRTEN | PHOTO BY ERIKA HODGES
MACHELLE A. MCADORY Senior vice president & chief Human Resources officer at Jackson National Life Insurance Company® Machelle A. McAdory, 54, is the senior vice president and chief Human Resources officer at Jackson National. A member of the company’s executive leadership team, she leads a staff of more than 100 professionals in eight business offices across the U.S. Before joining Jackson National in 2011, McAdory worked for General Motors, DaimlerChrysler Corp and TD Auto Finance. YOU HAVE SPENT A GOOD DEAL OF YOUR CAREER IN THE AUTO INDUSTRY. HOW HAS IT SHAPED YOUR CAREER? I’ll go back even one job before I went into General Motors and it’s my family-owned business. We were in electrical contracting. As soon as I was old enough to drive I became the material expediter – the owner’s kid running materials between job sites. It shapes you – [I had to] get materials to the site on time and if they didn’t have what was necessary, they couldn’t work and we were losing money. While most people thought I was just driving, there was a schedule to keep. I had to get to the warehouses and make sure all of the materials were there and deliver the materials, so that work ethic was instilled in me from very, very early on. That’s probably the foundation that shaped me. 14
WHAT WAS NEXT? From there I went to Kettering University – GMI at the time. I was 18, just out of school, and my first job was as a line supervisor. You think about it, we’re talking about the early eighties, so [I was] young and female and supervising people who had kids my age. A pretty great learning experience. AND WAS BEING A MINORITY PART OF IT TOO? I would say yes, because it’s hard to say no. Cat whistles were still allowed back then. People could say and do a lot of things that they definitely can’t say or do now. Fortunately, because electrical contracting was not exactly a pristine environment, I got toughened up pretty early on. What I’ve learned more than anything
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
SEPTEMBER 2016
else is that you have to know the business in order to influence the business. In HR, all we do is influence business. WHEN YOU LOOK AT YOUR CAREER, ESPECIALLY STARTING OUT AT KETTERING, DO THOSE KINDS OF OPPORTUNITIES EXIST TODAY FOR SOMEONE GRADUATING FROM HIGH SCHOOL? I’m actually more optimistic for my kids than when I was coming out. They can do so many more things and the world is so much smaller. I wish I had taken advantage of some of the opportunities that are available to young kids right now. No one expects to stay with a company for 35 or 40 years. No one expects to stay in the same profession. There are so many more opportunities. If I look back on my career I
BEHIND THE SCENES
would get some cross functional and cross business experience. I didn’t take it early in my career. I thought “that’s not HR work.” GM wanted to send me to work in procurement and supply. I was like why would I do that? I didn’t see the connection. YOU WORKED FOR AUTO COMPANIES FROM 1980 UNTIL 2011, TOWARD THE END, SOME OF THE MOST DIFFICULT AND DISHEARTENING TIMES EVER FOR THE INDUSTRY. NOW YOU DON’T. When I left Chrysler Financial, we were a little less than half the size we were when I started there four years earlier. The reason I really decided to look elsewhere was that at some point the bad news just gets to you. You are asking the same people over and over and over again, “hey, wouldn’t you like to take a buyout?” or “wouldn’t you like to take a package and retire?” They’re like “you asked me six months ago and I told you no. I don’t want to retire. I don’t want a buyout. I can’t afford it now.” And then you end up doing some pretty adverse things, and that’s never good. I picked up the phone one day and Jackson was looking for a chief Human Resources officer. I look at Jackson and I think, “wow.” What an opportune time to go to a company that is growing. This will be novel. I’ve got to learn to hire people.”
BASED ON YOUR INTERNATIONAL EXPERIENCE, DO YOU FIND DIFFERENCES BETWEEN WORKERS OVERSEAS AND THOSE IN AMERICA?
WHEN THESE TWO CONFLICT, HOW DO YOU BALANCE BETWEEN THE NEEDS OF THE COMPANY AND THE NEEDS OF THE WORKERS?
It is always amazing to me that when I’m in an international setting with colleagues, how similar our problems are. They talk about working with three, four or five generations. How do we attract Millennials? How do we get young people who have all of these social media influences? Their ideas are very Western. It creates problems for the HR departments.
I don’t believe it’s HR’s function to do that. I think HR has to help management understand how to manage people as it would with any other resource in the company. No one teaches you to take the fiction out of not having enough money.
WHAT ELSE IS CHANGING WITH HR? The profession has morphed and we’ve gone through some stages. Thought leaders would say we are moving away from transaction HR to strategic HR. I’m fine with that. What I tell my team here is that we aren’t even thinking about strategic HR. We need to be very capable business professionals who have an expertise in HR. You have to understand the business, think like the people you support and understand the financial implications of the decisions that you make. If you can’t think the way the business thinks, then you are a failure in human resources.
Human capital is not about us alleviating the friction; it’s trying to understand how you lead people, how you want the company and culture to execute and orienting your associate base so that it understands what to expect every day when they come to work. We have a certain way that we do business and what we expect, those are our core values. Our associates have to understand what that is and we have to be consistent with that. They make the decision that this is what I signed up for or that this is not for me. The bigger issue is really leadership, from your supervisors and managers and from your corporate leaders. This conversation with Machelle A. McAdory has been edited for space and clarity.
AND WHY HR? The electrical contracting business was my father’s. My mother was the head of HR for the City of Kansas City. Everything I learned about HR I learned from my mother. She really was a pioneer and trailblazer, the first woman and the first black person to head up human relations for the City of Kansas City. WHEN YOU PLAN FOR JACKSON’S FUTURE WHAT DO YOU LOOK FOR? Obviously, tech is huge and it’s not just for the people who work in technology, it’s for the people who support the business. It’s just the price of entry. And it’s the transferable skills, what in the profession we call the innate skills that say you can reason well, you can gather information, you can look at data and make it mean something. You can think through an issue or problem; you can collaborate with people around you to give input but also to receive information. We are going toward a far more social environment. People have been talking about “fit” for a long time. What we need are people who have some innate skills that allow them to work with other people in a manner that helps us to be successful. L
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VISUAL BREAKDOWN
HUMAN RESOURCES Human Resources is a vital department to any company or business. With responsibilities including supporting staff and management, solving issues within the business’s environment, handling raises and benefits, hiring and more, it’s not surprising to see these stats on projected growth in the HR industry. Take a look to see for yourself:
NATIONAL
MOST JOBS IN HR REQUIRE WORKING IN AN OFFICE (unless part of recruitment)
Recruiters travel to job fairs, colleges and different businesses
5.5 225,000 MILLION
THE US LABOR FORCE ADDED
Within the last year there was a
1.2% INCREASE in weekly earnings for HR managers
HR JOBS IN JULY 2016
HR job openings total were added since the last business day of May 2016
LANSING
will add HR jobs in August 2016
HR JOB POSTINGS
in the Lansing area with only
410
$60,474 median w ional average
$59,615
of service companies
1,917
DIAN WAGE E M E G A R E AV G AREA IS FOR LANSIN
nat (greater than
NATIONAL AVG. MEDIAN WAGE IS
47% 37%
of manufacturers &
ACTIVE CANDIDATES
age)
includes HR manager, HR specialist, HR assistants, first-line supervisors, training and development specialists, merchandise displays and window trimmers and retail loss prevention specialist
MSU is third on the list of top HR job posters with 103 openings, the first being Randstad Holdings with 166 openings Sources: www.glassdoor.com, www.shrm.org, www.mishrm.org, www.onetonline.org, www.bls.gov, www.collegeaffordabilityguide.org, yourbusiness.azcentral.com 16
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
SEPTEMBER 2016
S W E N S S INE
BUS
JUST
G R E AT E R
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LANSING AT A GLANCE
GREATER LANSING AT A GLANCE Each month, the 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.
June ‘16
May ‘16
April ‘16
March ‘16
June '15
Sales
53.9
65.1
66.0
53.3
63.9
Inventory
59.5
61.8
61.1
61.5
61.1
Prices
52.0
47.9
51.2
49.1
Marketing/Promotion
61.6
63.0
63.1
Hiring Plans
54.7
55.3
57.6
June ‘16
May ‘16
Civilian Labor Force (1)
(P) 242.2
248.6
51.8
Employment (1)
(P) 232.5
59.9
57.9
Unemployment (1)
53.2
53.0
Unemployment Rate (2)
Values above 50 generally indicate an increase in activity
April ‘16
March ‘16
June '15
249
248
241.3
237.2
240.8
238.6
226.2
(P) 9.7
11.3
8.2
9.4
11.9
(P) 4.0
4.6
3.3
3.8
5.4
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.
June ‘16
May ‘16
(P) 226.6
228.9
12-month % change
(P) 2.1
Mining, Logging & Construction (3)
(P) 7.6
Total Nonfarm (3)
April ‘16
March ‘16
June '15
231.1
228.2
222
0.2
1.9
1.9
1.3
7.2
6.6
6.3
7.4
12-month % change
(P) 2.7
1.4
0
3.3
4.2
Manufacturing (3)
(P) 21.3
18.9
20.9
20.6
19.7
12-month % change
(P) 8.1
-2.6
7.7
7.3
4.8
Trade, Transportation & Utilities (3)
(P) 35.9
35.7
35.5
34.9
35
12-month % change
(P) 2.6
1.4
2
1.7
2.6
Information (3)
(P) 3.1
3
3
3
3
July ‘16
June ‘16
May ‘16
April ‘16
July '15
Spartan Motors
8.49
6.26
6.4
4.86
4.44
General Motors
31.54
28.3
31.28
31.8
31.51
Emergent BioSolutions
31.53
28.21
43.88
38.52
31.01
Neogen
55.15
56.25
49.37
47.24
58.19
Gannett (Lansing State Journal)
12.76
13.81
15.62
16.85
12.65
9.9
10.85
11.82
12.85
16.89
Media General (WLNS)
17.59
17.19
17.84
17.33
15.87
Bank of America
14.49
13.27
14.79
14.56
17.88
Gray Broadcasting (WILX)
UPS
108.1
107.72
103.09
105.07
102.36
Home Depot
138.24
127.69
132.12
133.89
117.03
Kroger*
34.19
36.79
35.76
35.39
39.24
12-month % change
(P) 3.3
0
0
0
0
Financial Activities (3)
(P) 16.0
15.8
15.6
15.6
15.7
12-month % change
(P) 1.9
1.9
2
2
1.9
Macy's Inc.
35.83
33.61
33.21
39.59
69.06
Wal-Mart Stores
72.97
73.02
70.78
66.87
71.98
Professional & Business Services (3)
(P) 22.5
22
22.9
22.2
22.2
12-month % change
(P) 1.4
-2.2
4.1
1.8
-0.4
Education & Health Services (3)
(P) 30.5
30.7
30.7
30.8
30.5
12-month % change
(P) 0.0
-0.6
0
0
-1
Leisure & Hospitality (3)
(P) 19.8
19.4
19
18.7
19.7
12-month % change
(P) 0.5
-1
0
1.1
2.1
Other Services (3)
(P) 10.3
10.2
10.1
10
10.3
12-month % change
(P) 0.0
1
1
2
-2.8
Government
(P) 59.6
66
66.8
66.1
58.5
12-month % change
(P) 1.9
1.2
1.2
1.5
1.2
*Adjusted for stock split
An indicator of the Greater Lansing region’s business and housing growth.
BUSINESS
Clinton
(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
18
CONSUMERS ENERGY SERVICE STARTS
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
July ‘16
June ‘16
May ‘16
July '15
YOY Change
4,057
4,025
4,043
4,057
0.25%
Eaton
5,094
5,100
5,102
5,094
0.32%
Ingham
11,419
11,426
11,409
11,419
2.50%
TOTAL
20,570
20,551
20,554
20,570
1.50%
July ‘16
June ‘16
May ‘16
July '15
YOY Change
Clinton
29,285
29,252
29,215
29,285
1.34%
Eaton
41,447
41,424
41,406
41,447
0.67%
Ingham
97,422
97,500
97,455
97,422
1.28%
TOTAL
168,154
168,176
168,076
168,154
1.14%
GRAND TOTAL
188,724
188,727
188,630
188,724
1.18%
RESIDENTIAL
SEPTEMBER 2016
LANSING AT A GLANCE
GREATER LANSING ASSOCIATION OF REALTORS HOUSING REPORT A look each month at significant real estate pricing and listing trends.
July ‘16
June ‘16
May ‘16
April ‘16
July '15
Active Listing Count
2,096
2129
1680
1880
3,014
Active Listing Volume*
$397
$391
$304
$326
$500
New Listing Count
898
1024
873
765
982
New Listing Volume*
$154
$175
$152
$133
$159
Average Listing Price
$189
$184
181K
174K
$166
Average Listing / sq. ft.
$97
$100
$100
$98
$93
Days in RPR
89
87
81
90
93
Months of Inventory
2.8
3.4
3
4
4.4
Pending Sales Count
958
979
1040
702
576
Monthly Sales Volume*
$139
$146
$165
$108
$76
98
98
98
97
97
Percentage of Listing Price *In millions
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REAL ESTATE
BY TRICIA FOSTER
As someone who works locally while still tied to a larger organization, I have the opportunity to collaborate with specialty groups within CBRE. My colleagues, Karen Ellzey, executive managing director, and Carrie Thompson, senior managing director, are members of CBRE’s Global Workplace Solutions Management Consulting group. They have truly captured how workplace environments cater to the professional employee’s engagement with their employers, while aligning with C-suite strategies about core business models in the future. In an internal CBRE essay on workplace strategy published in April 2016, the two explored the relationship between the concept and those affected by it, from leadership to entry level employees. Here is an excerpt from that essay: “Workplace Strategy has become a high-profile part of the conversation around business, talent and the broader economy — a conversation often driven by headlines focused on “place” (think cool, alternative office environments and talent-grabbing amenities). And understandably so. These modern workplaces are featured on TV shows and style blogs and are helping redefine the traditional view of a cubicle-filled workplace. However, while being wowed by these undeniably cool office environments, we can overlook the “work” and “strategy” ingredients that comprise the concept of workplace strategy.
constantly and real estate executives must translate them into more specific questions that real estate can solve. Translating business needs into the right workplace solution is important work. Even if corporate real estate executives are not responding to a new shift in their business, the best among them are never developing workplace strategy in a vacuum. CAPEX Alignment What are the trends in building performance, and should a relocation be considered? Optimal Work Environment What are the appropriate design standards for various asset classes – client-facing, back-office, admin, etc.? Business Strategy & Goals Does this location fit with our brand and customer engagement strategy?
Location/Labor Strategy Does this location attract and retain the right talent? Property Management FM How does this location align with our corporate social responsibility agenda? Portfolio Strategy/Transactions How stable is the business at this site now, and how stable will it be in the future?
Project Management What is the financial impact to total cost of occupancy for occupier-requested upgrades?
OPEX/Asset Performance Are there issues with the property that need to be addressed through renewal strategy?
Questions to Ask When Developing
The right starting point is business strategy—understanding an organization’s “plan to win” in the marketplace. But for the executives who manage workplace environments for some of the largest and most successful companies in the world, they arrive at “place” only after they have also thoughtfully considered the other ingredients of the terms – “work” and “strategy.” This discipline comes from the fact that those in the C-suite are expecting great outcomes from the workplace investments they are making. For example, in CBRE’s inaugural Americas Occupier Survey, 57 percent of the 229 executives surveyed identified employee attraction and retention as the most important driver behind their company’s workplace strategy. Meanwhile, 85 percent said that they had used space restructuring to impact cost in the past year. In short, workplace strategy has to deliver on multiple objectives. “Today’s corporate real estate executive must balance new workforce desires with a realistic workplace strategy that brings talent and expense management into simultaneous focus,” according to the report. So even if the “place” grabs all the headlines, a disciplined approach is required to balance multiple objectives and deliver the exceptional outcomes C-suites are demanding.
Workplace Strategy
One organization’s plan to win will not be another’s. Flexible, activity-based work environments may be just the ticket for one company, while wellappointed, traditional offices may still be the winning formula for another. But whatever the answer, the important point is that workplace strategy never starts with the debate about open plan vs. traditional, or amenity-rich vs. barebones, or CBD vs. suburb, or how many square feet per person. What matters is each company’s unique strategy, its plan to win and how that plan translates into the approach to talent, market presence and workplace environments. IN GREATER LANSING The Lansing market also embodies this thought process. Locally we have seen companies place a greater focus on workplace environment as a means to attract and retain talent across demographics, while area municipalities and economic development groups are similarly focused on infrastructure and amenity enhancements that compliment attractive workplace environments.
The right starting point is business strategy — understanding an organization’s “plan to win” in the marketplace. These plans evolve
Tricia Foster, CPM®, ACoM® is Senior Managing Director and Chief Operating Officer at CBRE | Martin
Sources: Blueprint presented by CBRE, A View from the Top “The Forces That Shape Where and How Work Gets Done” April 1, 2016, by Karen Ellzey and Carrie Thompson © CBRE, Inc. 2016 Americas Occupier Survey 2015/2016, The CBRE Institute, © CBRE, Inc. 2016 20
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
SEPTEMBER 2016
SPONSORED
HAVE VISION. BE A COMMUNITY CHAMPION! BY BRENDAN DWYER, CTA
Individuals looking to provide community leadership need more than just business savvy and charisma. They must see beyond their own specific industry and understand different ways a community can sustain economic stability. They require vision. For example, one need not be in the convention industry to realize that when events are held in a community, the economic impact is huge. From hoteliers to restaurants to retailers to gas stations and more, these out-of-town business travelers pump millions into the local economy. Obviously, this is good business, but a community leader with vision, sees more. This person sees an opportunity to take action and help bring a conference or meeting to greater Lansing. This person advocates for greater Lansing as a host city in his or her professional circles. This proactive and committed approach makes a person more than a community leader, it makes them a greater Lansing community champion.
In 2013 the Greater Lansing Convention and Visitors Bureau (GLCVB) announced the Community Champions initiative to formally acknowledge local individuals who assist the GLCVB in securing meetings, conventions or other events for the greater Lansing region. The program is intended to appeal to the civic pride of local residents by providing well-deserved recognition to the individual and his or her organization, as well as educating area residents on the positive economic impact to the local area. “Our hope for this program is that it will shed light on the significant efforts being made by community stakeholders to keep their hometown of greater Lansing in the forefront as host-city for key meetings and events throughout the year,” said Jack Schripsema, President and CEO of the GLCVB. “When events are held in greater Lansing, the local economy gets a big boost. That impact generates $602 million in spending and supports over 11,000 local jobs. This program is a small way
of saying thank you to those who champion our numerous local resources.” Individuals interested in inviting their professional organization, hobbyist club or tournament style sports event to the Lansing area for a convention or event should contact the GLCVB. They will not only receive free planning assistance, but will also receive consideration as a future community champion. Community Champions receive recognition throughout the year and at the GLCVB annual meeting in March. Ask yourself – Do you belong to a club, team or organization that could host an event in greater Lansing? If so, call the GLCVB. You might be our next Community Champion! Brendan Dwyer is the Manager of Marketing Communications with the Greater Lansing Convention and Visitors Bureau.
PLAN ON...
G
LANSIN
AFFORDABILITY
ACCESSIBILITY
DEDICATION
VENUES & RATES FOR EVERY BUDGET
CENTRAL LOCATION BOOSTS ATTENDANCE
VOTED 2014 BEST CVB IN MICHIGAN*
www.lansing.org CMP, CTA
517.377.1405 atoy@lansing.org CMP, CTA
517.377.1414 mchotchkiss@lansing.org CTA
517.377.1434 amoon@lansing.org *Source: Michigan chapter of Meeting Professionals International
GREATER LANSING L
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Glenn Granger (left), Granger President and CEO and Tom Owens, Project Supervisor, review plans for a construction site.
22
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
SEPTEMBER 2016
COVER
LANSING’S CONSTRUCTION INDUSTRY THRIVES DESPITE WORKER SHORTAGE BY MICKEY HIRTEN | PHOTOS BY ERIKA HODGES
In May, when Lansing voters approved a plan to repair and renovate 27 of the district’s school buildings, they added $120 million in projects to the region’s already booming construction industry. The value of construction projects underway or planned in greater Lansing currently exceeds $700 million, a clear signal that the industry has recovered from the Great Recession, while simultaneously presenting a completely separate challenge - finding qualified workers. It’s an issue with no quick or easy answer for the region’s large construction companies such as Christman Co., Wieland, Granger Construction Co. and Clark Construction Co. Inc. While the market for new construction is soaring, the industry’s workforce has yet to recover from the Great Recession downturn. Many workers who left the trades between 2008 and 2012, haven’t returned, at least not in Lansing or in Michigan.
The construction industry has regained its footing in a post-recession landscape of fewer companies, worker shortages and opportunities for technology to aid productivity. “There was a massive correction in the industry in 2010. Almost everyone shrunk by 40 to 50 percent during the recession. Now we are up to about 75 percent of where we were,” said Kevin A. Shaw, vice president of marketing at Wieland. Overall, it may be a smaller industry in Lansing, but it has surprising strength. The four large construction companies together had combined revenue of $1.45 billion in 2015, according to a survey by industry trade publication, Engineering News-Record (ENR), with a good share of their business done
outside of the mid-Michigan market. All four of the Lansing-based businesses appeared in ENR’s “Top 400” annual ranking. Christman Co., number 102 in ENR’s rankings, is the largest area construction company with 500 to 600 employees in nine offices nationwide and its revenue was at $696 million in 2015. Among its notable local projects are the MSU Facility for Rare Isotope Beams and the new Sparrow Hospital Cancer Center Pavilion. Wieland was next in the ENR rankings at 247, with revenues of $287 million in 2015. With 110 employees in seven offices, its notable local projects are the Lansing Catholic High School football stadium and Spartan Motors’ new manufacturing plant on its Charlotte campus.
The Bureau of Labor Statistics’ May 2016 report on employment in Lansing and East Lansing identified a mere 7,200 construction jobs in the region. This compares with 11,200 jobs in August 2000, the record year for construction workers. Other metro regions in Michigan have experienced similar losses. In Detroit, for example, construction jobs peaked at 31,600 in August 2000; in May 2016 the number of workers was just 21,700. For Grand Rapids, the peak was 28,400 construction jobs in July/August 2002; and in May it was 22,200. “This is something we’ve been talking about in the industry for 10 years. There were warnings that we have an aging workforce and that young people were not coming into the trades. Then the big recession hit and it disappeared as an issue. But it didn’t take much of an untick to start seeing these shortages,” said Steven F. Roznowski, Christman Co.’s president and chief executive officer. L
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COVER
Close to Wieland in the rankings was Granger Construction, ranking at 255 with $270 million in 2015 revenues. It has three Michigan offices and 120 employees and is building the second MSU Federal Credit Union headquarters in East Lansing. Clark Construction was the fourth local company on the list at 333, its revenues were at $201.3 million in 2015. A smaller company of about 100 employees, Clark has two Michigan locations and is currently working on the $15 million Sparrow Hospital medical office building at the intersection of Saginaw and US-127. ENR reported that all four companies have booked significant new business during their 2015 fiscal year. New contracts for Christman in 2015 totaled $845 million, with Wieland, Granger and Clark behind at $241 million, for Granger $167 million and for Clark, $234 million. While all of the big construction companies rely on subcontractors to supply labor for their projects, Christman and Granger operate skilled trade units.
On the MSU headquarters building, Granger has done the concrete and other general trades work, employing between 100 and 200 workers at times, according to Granger President and CEO, Glenn Granger. His company, he added, does proportionately more work in Michigan than the other Lansing based contractors. It’s a market that he said is changing quickly. “If you were talking three or four months ago, there were so many people available that we didn’t have places for them. But a few months go by and now we are trying to bring on people.” Granger said. Industry sources identify the greatest current job shortages in fields requiring the most training and skills – professions such as electricians, plumbers, sheet metal workers and other technical fields, and no one sees a quick fix. For Clark Construction, which uses subcontractors for its projects, the immediate solution is longer hours, said Gerald Boerner, senior vice president of operations. “All of the skilled trades are working overtime to maintain schedules. There’s not many options
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Maner Costerisan has been supporting educational entities in the community for over a century! Our dedicated team has in-depth knowledge of the unique challenges and requirements facing all types of educational institutions, including K-12 school districts, intermediate school districts, charter schools, colleges, and private schools. We will personalize your services to best meet your needs, and pride ourselves on making all of our clients feel like family. For more information about our education niche services, contact Bruce Dunn at 517.886.9547 or bdunn@manercpa.com.
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COVER
LEAN CONSTRUCTION PRACTICES Seeking the efficiencies that have transformed manufacturing, the construction industry is adopting a practice known as “lean construction” in order to reduce waste, lower costs and improve profits. The industry has established a non-profit organization called the Lean Construction Institute to develop and share best practices, principles and techniques. THE GOAL: Improved productivity, starting with design and lasting through on-site construction. The Lean Construction Institute cites its work as a “foundation for a new form of project management” based on tools that facilitate planning and control, maximize value and minimize waste throughout the
design and construction process. Tools include: • Planning system measurements to ensure reliable work flow and predictable project outcomes • Performance standards to maximize value and minimize waste at the project level • Simultaneous design for the facility and its production process rather than a sequential process • Coordinating action through pulling and continuous flow as opposed to traditional schedule-driven push with its over-reliance on central authority • Decentralizing decision making
when you don’t have the bodies,” Boerner said. He estimated that construction prices have increased by 10 to 15 percent as the economy has improved. Adding to cost pressure is the unwillingness of some subcontractors to even bid on jobs. “Some have so much work that they don’t even give us a number. It’s supply and demand economics,” Boerner said. Aside from trade workers, construction companies are also scrambling to fill their professional staffs. Wieland recruits at MSU and sponsors internships to sift for talent. “If they are good we hire them, teach them the Wieland way,” said Shaw. Christman has a similar strategy, mining MSU’s construction and engineering programs for talent. Its skilled trade division works with local unions to recruit at the high school and community college level, according to Roznowski. “We rely heavily on relationships with trade contractors. That’s where a long-standing and good reputation in the market is very helpful.”
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But Roznowski acknowledged that the reliance on relationships with trade contractors really only shifts the talent challenge onto subcontractors. One of the ways contractors are dealing with the tight labor market is by finding efficiencies using lean construction principles. “When you look at lean construction, you find dramatic opportunities for better value, lower costs and lower rework,” Granger said. In a recent study, management consultant McKinsey & Co. reported that productivity in construction has been flat for decades, while productivity for manufacturing has nearly doubled. It cited poor organization, inadequate communications and missed scheduling connections as factors.
By using 3D modeling, Christman is identifying conflicts and problems on computer screens before discovering them in the field, Roznowski said. The new system gives contractors the ability to use
subcontractors who can fabricate duct work, heating and cooling systems, plumbing and other mechanical systems offsite in efficient, controlled settings, trucking them to the jobs site when they are needed.
September 16 & 17
Granger is addressing these issues, promoting a culture change in his organization. He noted that supervisors working at the MSUFCU site are wedded to their iPads, pulling up drawings in real time, finding changes and updates and setting production schedules. In the past, this sort of communication was completely paper-based. Granger said the goal is eliminating waste, which is notoriously high in the construction industry, ensuring that work is ready when workers are available.
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For Christman, lean practices help the company integrate modular components on its projects. “There is a real challenge to apply lean manufacturing principles to the construction industry,” Roznowski said. “Everything we build is different, a high degree of customization.”
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EXCHANGE RATES BY MORDECHAI E. KREININ, UNIVERSITY DISTINGUISHED PROFESSOR (EMERITUS), MSU
A special price, arguably the most important price in the economy, is the exchange rate. Every country uses its own currency; thus the U.S. has the U.S. dollar ($); the U.K. has the pound sterling (£); Europe has the euro (€); Japan has the yen (¥); China has the Yuan; Mexico—the peso (₱); and so on. The exchange rate is the price of one currency in terms of another. For example: if we assume (unrealistically) that one dollar equals half a pound or $1=£0.5; then inversely, a pound equals 2 dollars or £1=$2. Every exchange rate between two currencies, called a bilateral exchange rate, has an inverse. If $1=¥100 than ¥1 is worth one cent. These exchange rates fluctuate every day in response to supply and demand conditions in the financial markets. Below are some bilateral exchange rates and their inverses that prevailed in the market on a recent day:
EXCHANGE RATE $1 = €0.90
$1 = ¥100
$1 = £0.70
$1 = P18.60
EURO
POUND
YEN
PESO
INVERSE RATE €1 = $1.10 £1 = $1.40
¥1 = $0.01 P1 = ~$0.05
Why is the exchange rate so important? Because it affects the relative prices between the two countries involved, and hence their relative competitive positions. To demonstrate this, we assume (unrealistically) a simplified exchange rate designed to make the calculations easy. Presume that a Boeing (U.S.) aircraft costs $10 million. How much it costs a European airline to buy it depends on the exchange rate. At $1=1€ 28
or 1€=$1 rate, the $10 million translates into 10 million euros in Europe. At $1=0.5€ or 1€=$2 the same plane would cost the continental buyer only 5 million euros. The same holds true for all goods sold by the U.S. in Europe. Clearly, a drop in the exchange value of the dollar relative to the euro makes American goods cheaper to European buyers and it makes American products more competitive in Europe. Conversely, consider a German camera that costs 100 euros. How much would it cost an American buyer? At an exchange rate of $1=1€ (or 1€=$1) it would cost $100. At an exchange rate of $1=0.5€ (or 1€=$2) it would cost the American buyer $200. The same applies to all other continental goods sold in the U.S. A decline in the exchange value of the dollar (or equivalently, a rise in the exchange value of the euro) makes continental goods more expensive in the U.S. To summarize the two cases just observed: a decline in the exchange value of the dollar makes U.S. goods more competitive abroad and foreign goods less competitive in the U.S. Conversely, a rise in the exchange value of the dollar makes U.S. exports less competitive abroad and foreign goods more competitive in the U.S. The same applies to the effects of changes in the exchange value of any currency on its country’s competitive position at home and abroad. During the 2016 presidential election campaign, a claim was made that a decline in the exchange value of the dollar relative to the Chinese yuan would make American goods more competitive relative to Chinese goods in the U.S. and foreign markets. As another example, after the U.K. vote to exit the European Union in June 2016, funds in large amounts flew out of the U.K. and the pound lost more than 15 percent of its value relative to the dollar. This made British exports more competitive abroad.
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Now some terminology: A decline in the value of a currency is called depreciation and a rise in the value of a currency is called appreciation. In the case of a bilateral exchange rate, such as between the dollar and the euro, if the dollar depreciates, it implies that the euro appreciates. To generalize, a nation’s trade balance is the value of its commodity exports minus the value of its commodity imports, both measured in the same currency. Exports lead to an inflow of funds in payments which are considered positive, while imports lead to outflow of funds and are considered negative. The U.S. trade balance has been negative (import value exceeds export value) for many years. Two points of modification are needed. First, the discussion above was expressed in terms of bilateral exchange rates. And these change every day in different directions. The overall exchange rate of a currency is some average of the bilateral rates. So, if the dollar depreciated relative to the pound and appreciated in terms of the euro, what happened to the dollar is an average of the two movements. In the same way, the improved competitive position caused by depreciation is no reason for a country to run its currency into the ground because there are costs involved. The country must pay more to finance its imports and countries can retaliate thereby causing an undesirable competitive depreciation. 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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BUSINESS CALENDAR
SEPTEMBER 2016 SEPTEMBER 7 INNOVATE MICHIGAN SUMMIT, EAST LANSING Learn, share and create innovative ideas for economic development with the best and brightest in Michigan. Keynote speaker Johnathan M. Holifield, Architect of Inclusive Competitiveness, will shine a light on the need to increase economic productivity of disconnected Americans to improve their quality of life and help our nation sustain global economic leadership. Holifield presents a compelling model for new economic narratives and community systems, along with an action framework for leaders in business, government, technology and more! His presentation is essential to hear for anyone concerned about shared prosperity and economic future of the United States. This seminar will be held at the Kellogg Hotel & Conference Center at 219 South Harrison Road in East Lansing. Find more information and registration details at michiganbusinessnetwork.com.
SEPTEMBER 7 SUITS AND THE CITY, LANSING Suits and the City invites all LGBT professionals to network with other professionals at the Lansing City Market. Suits in the City is proud to offer diverse networking events where you can explore the Capital area and create a supportive community. Members become acquainted with a different welcoming venue each month and meet hosts and sponsors who value their patronage. The event starts at 5:30 pm. You can find more information at suitsandthecity.org.
SEPTEMBER 7 HR FOR SMALL BUSINESSES: 2016 EMPLOYMENT LAW UPDATE, LANSING Companies without a Human Resources department often delegate the more complicated HR tasks to the controller, office manager or other managers without formal HR training. This webinar is geared towards those professionals
and will focus on specific Michigan and federal employment laws relevant to small business and provide best practices in order to avoid common and costly mistakes. Topics covered include; medical leaves of absence, military leaves of absence, classification of employees and independent contractors, safety laws and termination requirements. The cost is $75 for members and $95 for non-members. For details and more information, visit michamber.com.
SEPTEMBER 8 EVOLUTION OF HIPAA & COBRA: KEEP UP WITH THE CHANGES, LANSING HIPPA and COBRA have been evolving for some time now. For example, compliance audits and expanded scopes have made HIPPA a more prominent concern for a vastly larger number of companies than ever before. COBRA has been affected in significant ways by the Affordable Care Act and is an increasingly sticky issue in corporate transactions. This educational 60-minute webinar will ensure you are fully compliant with HIPPA
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BUSINESS CALENDAR
and COBRA laws as they exist today. This seminar is $75 for members and $95 for non-members. Visit michamber.com to register for this event.
SEPTEMBER 13 HEALTH & BENEFITS CONFERENCE, LANSING MichBusiness invites you to join them for their Health & Benefits Small Business Summit. This conference is designed to help business owners, advisors and consultants with valuable information to keep you current on health insurance trends and product options, new HR tools in the industry and compliance pitfalls. This conference will provide you with the important content, options and valuable knowledge to keep your business compliant and on the cutting edge of health care trends. The conference is $85 and you can register at michibusiness.com.
SEPTEMBER 16 VETERAN JOB FAIR, EAST LANSING The office of Veteran and Military Affairs at Lansing Community College is holding the first annual Veteran Job Fair. Many of the area’s top employers will be in attendance in addition to Michigan universities and colleges. Employers include: Michigan State Police, Community Mental Health, Trialon Corporations, Michigan Department of Corrections, Department of Civil Service, Global Automation Technologies and many more! Tickets are free and refreshments will be provided for all attendees. The event will be held at Lansing Community College’s West Campus in conference room M119 at 11a.m. Employers interested in participating can contact cosgr1@star.lcc.edu. Visit eventful.com for more information.
communicator and confident manager. This seminar costs $270 for members and $295 for non-members. The seminar is from 9 a.m. to 3 p.m. For more information, visit michamber.com.
SEPTEMBER 27 DISABILITY IN THE WORKPLACE, LANSING Under the ADA, employers have an obligation to provide a reasonable accommodation to qualified individuals with a disability unless the employer can show an undue hardship or a direct threat. Practical solutions for dealing with an employer’s growing obligations for accommodating disabilities in the workplace will be laid out in this 60-minute webinar. Stop by michamber.com to register. This webinar is $75 for members and $95 for non-members.
SEPTEMBER 27 10 OVER THE NEXT TEN, LANSING The 10 Over the Next Ten Awards is an evening spent celebrating the innovative and entrepreneurial leadership from Lansing’s best and brightest young professionals. Held in conjunction with the Grand River Connection’s fourth Tuesday networking event, this casual
awards ceremony is a chance to socialize with Lansing’s next crop of business and community leaders. The event will be held from 5 p.m. to 8 p.m. Award winners are announced the night of the event. For more information, visit lansingchamber.org.
SEPTEMBER 29 WAGE GARNISHMENT ADMINISTRATION: NEW AMENDMENTS & MORE, LANSING Within the last 6 months Michigan has completely overhauled its wage garnishment process and forms, which changed burdens, expenses and risks for businesses. Additionally, Michigan is a state with nearly the highest number of businesses and residents subject to garnishments, which makes it important for businesses to understand how to reliably administer them. A mishandled garnishment can lead to direct liability for the missed deductions or even the full debt owned. By taking this seminar you will learn; creditor wage garnishments, state and federal tax levies, bankruptcy orders, student loan garnishments and more. The seminar is from 9 a.m. to 3:30 p.m. and is $270 for members and $295 for non-members. More information and registration details can be found at michamber.com.
SEPTEMBER 16 TEAM CITY MARKET, LANSING Are you passionate about Lansing? Bring your fun, fresh and innovative ideas that would make this city and its riverfront a more bustling shopping and entertainment hub to the new TEAM City Market. Meet with other inspired members of the community and brainstorm over lunch every third Friday at noon. Not only will you be helping to better the city, but you can boost your resume and network with other Lansing business professionals. Lunch meetings are at the Waterfront Bar & Grill and Red’s Smokehouse. For more information, visit downtownlansing.org.
SEPTEMBER 21 ADVANCED SUPERVISOR & MANAGER TRAINING COURSE, LANSING Become a skilled supervisor thanks to the Michigan Chamber. Top-rated trainer Laura Simms will guide you through the steps it takes to become a successful leader, powerful L
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MAN ON THE STREET
MAN ON THE STREET WHAT IS THE MOST MEMORABLE INTERVIEW QUESTION YOU’VE EVER BEEN ASKED?
Explaining what weaknesses that I have to a perspective employer. It’s always memorable because it’s the most nerve-racking.
“What’s the worst quality that you have,” is the worst question that I’ve been asked in an interview. -TORRI NIGHBERT
-PETE TORRIS
“Why do you want to be a part of this organization?” is the toughest question.
“What motivates me to do what I do?” -HARRIET CAMMOCK
-DON SCHIESSLER
People have asked me about my greatest weakness and I think that’s the strangest question to ask somebody in an interview. -DAVE WILSON
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CAREERS
GREATER LANSING’S INSURANCE INDUSTRY CONTINUES TO GROW BY EDYTHE HATTER-WILLIAMS
If you ask a child, “What do you want to be when you grow up?” the answers are varied — firefighter, president, princess, doctor, movie star, pro athlete. They don’t say, “I want to work in insurance.” But maybe they should. Lansing’s insurance industry has done nothing but grow since the turn of the century. Between 2000 and 2015, the Lansing “insurance carriers and related activities” industry has grown by 27.8 percent, which compares favorably to private jobs overall in Lansing, which has contracted by 5.2 percent. In a report released earlier this year by the Anderson Economic Group, we learned that Lansing’s insurance industry makes up almost 20 percent of Michigan’s insurance workers, with nearly 7,300 employees. Greater Lansing is fortunate to boast six major insurance companies as employers: AF Group, Auto-Owners Insurance, Delta Dental of Michigan, Farm Bureau Insurance of Michigan, Jackson National Life Insurance Company and Michigan Millers Mutual Insurance Company. That easily makes the insurance industry one of our region’s largest employers. As these businesses continue to grow and we march toward the 10,000 worker benchmark, greater Lansing is poised to qualify as a legitimate insurance hub, making it easier to attract more businesses to serve those employees and continue to grow our economy.
so many things that are important to us, it only makes sense the industry continues to grow.
Lansing’s insurance industry makes up almost
20%
of Michigan’s insurance workers, with nearly
7,300 employees. Source: Anderson Economic Group
According to Anderson Reports LLC, the average salary in the insurance industry is $85,000, compared with $59,000 for other industries in Michigan. So young people, want to work in insurance now? The U.S. insurance industry plays a vital role in our economy. It employed 2.5 million people in 2015, according to the U.S. Department of Labor. Of those, 1.5 million worked directly for insurance companies. According to the Griffith Insurance Education Foundation, the insurance industry will create more than 400,000 job opportunities by 2020. Many of those will be here in greater Lansing. The Bureau of Labor Market Information and Strategic Initiatives says that between 2012 and 2022, Lansing’s “insurance carriers and related activities” industry is projected to grow by 13.9 percent, adding 1,150 jobs. This growth rate is nearly double the all-industry job growth rate of 7.3 percent. Think about it. Insurance touches all of our lives. From health and home to car and pet, we insure
And training will be essential for these jobs; in a Griffith recent survey, 75 percent of companies said they use internships to recruit entry-level talent. A great number of jobs in the insurance industry lean on STEAM skills, and AF Group’s partnership with Capital Area Michigan Works! and the Capital Area IT Council aims to create a talent pipeline in mid-Michigan to help fill those jobs. AF Group leadership assists both workforce partners and the community with talent development efforts. AF Group has used the CAMW! Business Services Team to assist in hiring dozens of employees in many departments and has participated in programs like Capital Area Tech Knowledge E-Pathways to help unemployed and underemployed people plug into and advance along career paths in IT. It benefits us as a region to train and prepare our residents for this growing industry. It’s helping our friends and neighbors connect with jobs in a secure industry; by preparing these folks for insurance careers, we’re helping businesses who are already investing in our community to connect with the workforce they need to grow. It cuts down on the amount of time and money they have to spend recruiting and it demonstrates the value of investing in greater Lansing. I can’t think of a better partnership. So as you talk with young people about jobs and careers, don’t forget to talk about the insurance industry. Edythe Hatter-Williams is the CEO of Capital Area Michigan Works!, a talent investment network that partners with businesses to develop recruiting and retention strategies and partners with job seekers to enhance education and career opportunities. On the Web at camw.org. L
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NOTABLE NEWS
BAKER COLLEGE TO SPONSOR STATEWIDE WORKFORCE DEVELOPMENT EVENT FOR HIGH SCHOOL STUDENTS IChallengeU, which invites high school students to develop solutions to real-world business problems, will include a state competition in 2017 sponsored by Baker College in Jackson, Mich. IChallengeU is an intense, two-week summer educational opportunity for high school juniors and seniors. It pits teams of students against each other to develop solutions to problems or obstacles experienced by partner companies and organizations. On the final day, each team presents its solution in a 10-minute presentation. Judges select the team that did the best job of developing and presenting its solution. In 2017, teams that win at the regional level will advance to the new state competition titled IChallengeU Michigan. It is set for Friday, July 28, 2017, and will be hosted by Baker College at one of its Michigan campuses. Each winning team member will receive a Baker College scholarship for a two-year associate degree, or equivalent.
“The IChallengeU program was created to help gain public awareness of and support for overcoming a shortage of trained workers and the disconnect between the public and the actual needs of the business community,” said Robert Tebo, Michigan Works! Southeast director—regional business fellowship. “Baker College will be an excellent state contest sponsor. Its high quality programs are uniquely designed to meet employer needs, which is what IChallengeU is all about.”
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IChallengeU was developed in 2011 by the Ottawa Area Intermediate School District (ISD) in Holland, Mich. In 2013, Michigan Works! Southeast began hosting an annual IChallengeU competition in Jackson, Mich. This year, it involved students and businesses in Hillsdale, Jackson and Lenawee counties.
SEPTEMBER 2016
Generously Sponsored by:
LANSING PROMISE A PROMISE FOR THE FUTURE
The Lansing Promise launched its efforts by awarding its first scholarships in the fall of 2012
458 142 74%
86%
74% persistence rate
86% persistence rate
2012 - 2013 School Year
$92,698 2013 - 2014 School Year
$152,990 2014 - 2015 School Year
$238,123 2015 - 2016 School Year
$375,666 2016 - 2017 School Year
$600,000+ Estimated
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office at daniel.smith@baker.edu or (517) 7887800, or visit baker.edu.
and CEO. “Workspaces are such an important investment for our clients and DBI remains dedicated to delivering exceptional services that help create high-performance spaces.”
ROTARY CLUB OF LANSING ELECTS JACK C. DAVIS AS PRESIDENT Jack Davis was elected president for the Rotary Club of Lansing for the term of July 1, 2016 to June 30, 2017. The officers are: Courtney Millbrook, Foundation president; Darwin Brewster, president-elect; Melody Warzecha, treasurer; and Suzy Carter, treasurer. The outgoing president is Lisa Smith and the outgoing treasurer is Jessica Stark, both of whom did an outstanding job for Rotary.
DBI EARNS HAWORTH’S BEST IN CLASS DISTINCTION FOR FIFTH CONSECUTIVE YEAR Haworth, Inc. has designated DBI as a 2016 Best In Class dealership based on exceptional performance in sales and customer satisfaction, operational excellence as well as enterprise development. DBI is a 5-year honoree joining
an elite group. DBI is one of only a handful of dealers who have earned Best in Class distinction each year of the program’s existence. Haworth works with a network of more than 250 North American dealerships; independent businesses that provide sales and support to customers by assisting architects, designers and facility managers in the complex process of selecting, specifying, planning and purchasing furniture and workspace interiors. Each year, Haworth’s Best In Class standards become more stringent and dealers that are multi-year Best In Class designees exemplify a commitment to high performance and the maintenance of rigorous standards over time. “We are thrilled to accept Best in Class on behalf of our team,” said George Snyder, DBI President
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Economides Architects, LLC is the oldest still existing architectural practice with the original founder as principal in all of Greater Lansing. The 2008 housing crash was a rough spot for many of the industries’ leaders, Economides Architects, LLC among them. However, the values and attributes that led to success before that time continue to raise the company in success today. Economides Architects, LLC has several projects underway, all throughout the country. They specialize in affordable, multi-family residential complexes and have been known to develop single family homes, office parks, religious and educational facilities. In addition, they have been working to revitalize several historic buildings in economically depressed areas. Further, during their 45-year history, they have been recognized with copious amounts of awards, and hold eight Best in Nation Awards for design excellence, in addition to the 2015 Gold LEED award for Phelps Square, located in Detroit, Mich.
CLARK CONSTRUCTION AWARDED CERTIFICATE OF COMMENDATION FOR EXCELLENT SAFETY RECORD
Helping individuals and families navigate the legal issues of death and incapacity.
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ECONOMIDES ARCHITECTS, OLDEST LANSING FIRM WITH ORIGINAL FOUNDER AS PRINCIPAL
SEPTEMBER 2016
Clark Construction Company has been awarded the 2015 Certificate of Commendation for an Excellent Safety Record by the Associated General Contractors of America (AGC America). The designation recognizes Clark Construction for surpassing 50,000 work hours in the past year with no safety incidents. Clark has won the award every year for more than a decade. “The AGC award is an honor which recognizes our total team commitment to “Safety First,” said Clark Construction CEO Charles Clark. “We could not achieve this unprecedented level
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TAPPING INTO THE NEXT GENERATION Millennials in the Workplace BY AMY M. BERGMAN, SPHR, SHRM-SCP, VP, HUMAN RESOURCES CONSULTANT, UB CONSULTING, LLC
Are you struggling to connect with your candidates and new employees? Generation Y-Millennials are those ages 16-35 and, like all labeled generations before them, they bring a unique set of characteristics and assets to the workplace. This generation likes things spicy. Take a look at your environment in the organization and question what you can do to welcome this generation who craves variety into your workplace. These Gen Y’ers work well in teams and can get bored easily. Think about creating work teams, committees, etc. to tap into this characteristic and keep them engaged. Their talents in multi-tasking and tech-savviness are a real asset.
creative recruiting method is to create an internship program where you can bring in eager Millennials exposing them to a realistic work preview while shaping them with meaningful work projects that test them to demonstrate their classroom knowledge and critical thinking skills. According to The National Association of Colleges and Employers (NACE), 63 percent of college graduates held internships during their undergraduate years; more than 80 percent of large organizations report that the primary purpose for hiring interns is to identify talent and develop new potential employees. In 2013, employers reported that 38% of new college hires consisted of the employer’s own interns.
To attract Gen Y candidates, look to social media networks, video recruiting clips depicting your high-energy work environment and detail the variety of options available within your company that would appeal to them. Another
We now have four generations working together in the workplace. This can create some tension if your teams haven’t had proper training on the generational differences, needs and characteristics. Consider offering some training
on these issues to bring understanding and collaboration into your workplace. For those of you who are Millennials out in the job market seeking your career opportunities, do some homework to understand the characteristics of the Gen X, Baby Boomer and Silent generations. This will give you a leg-up in the selection process as you flex your style to appeal to the needs of these other generations as well. Just when you master this, the Generation Z’ers will be knocking on your door! Amy Bergman provides strategic HR Solutions for a variety of financial institutions, non-profits and small businesses. She is a Certified Senior Professional in Human Resources as recognized by the Human Resources Certification Institute and the Society for Human Resources Management.
BIG BANKS LOOK FOR THE PERFECT DEAL.
We look for more.
Too often, big banks sit behind their desk, looking to craft the perfect deal for the bank. At Union Bank, we look to do more. We look to be active in our community, working to connect our customers with contacts that form a mutually beneficial relationship. In the Greater Lansing area, Melody is who you can count on to do more for local business. As Vice President of Commercial Lending, and a member of our loan approval committee, she contributes to making business loan decisions locally, between local people. Just one of the many ways we do more.
We do more for your business.
Melody Warzecha Vice President, Commercial Lending
ubmich.com · 517.646.9095
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integrates management philosophies and action, quality, regulatory and monetary requirements, as well as meeting the ultimate objective of successful project completion.
of safety performance without the commitment of every member of the Clark team.” Clark Construction’s “Safety First” commitment
Earlier this year, Clark Construction reached the 15-year mark without lost time due to injury. Clark expects to surpass four million job hours without lost time during calendar year 2016, which is an unprecedented accomplishment in the commercial construction industry. Clark has
been widely recognized with virtually every state and national safety award in recognition of its safety performance over the years. Clark Construction was the first Michigan construction company to join Michigan AGC and MIOSHA in a landmark government/ industry safety alliance designed to protect the safety and health of Michigan’s construction workers.
MEL OFFERS NEWLY-DESIGNED BUSINESS GATEWAY Michigan’s eLibrary, MeL.org, is debuting a newly-designed Business Gateway (mel. org/business), which features a video series designed to assist entrepreneurs in starting and growing businesses. “Our library resources are providing greater customer service and helping Michigan continue to improve its economic growth,” said State Superintendent Brian Whiston. “MeL.org’s online Business Gateway is an exciting advance in assisting Michigan’s job providers.” MeL’s Business Gateway offers everything from subscription resources available at no cost to Michigan residents and a gateway that strategically supports economic development efforts, to the video series that targets how libraries and business-support organizations use MeL. State Librarian Randy Riley said the MeL team at the Library of Michigan partnered with business librarians, representatives from business-service organizations and entrepreneurs across the state on the Business Gateway’s new look and content.
Look Beyond the Position.
See OppOrtunity. As the leader in contingent and permanent staffing and workforce solutions, we help enhance your agility, productivity and competitiveness – with better business results for you. Contact us to discover what’s humanly possible. 741 N Cedar St • Lansing 517.372.0880
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“This collaboration resulted in a better understanding of how libraries and entrepreneurial organizations can work together using common resources to foster economic development in Michigan,” Riley said. Business owners and entrepreneurs can use powerful online tools, such as BusinessInsights:
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Global; BusinessDecision; DemographicsNow; Small Business Resource Center, Gale Virtual Reference Library: Business Collection; and Gale Legal Forms. All subscription content is available at no cost to all Michigan residents with no log-ins required. The portal also has resources for high school and college students, especially those in business education, marketing or entrepreneurial programs that may require data-driven tools for projects and reports.
MAYOR BERNERO WELCOMES NEW TIER ONE GM SUPPLIER Mayor Virg Bernero announced on August 4 that Tenneco has opened a new manufacturing facility in Lansing, Mich. “I’m delighted to welcome Tenneco to Michigan’s capital city,” said Mayor Bernero. “As a Tier One auto supplier, Tenneco’s new Clean Air facility in Lansing represents another
INGHAM COUNTY TRAIL AND PARK MILLAGE FUNDING AWARDED
A total of $4,736,872.30 of funding is approved to repair or replace 21 bridges and two sea wall/bank stabilization projects within Ingham County. The County will now enter into a contract with each municipality and each municipality will manage its own projects. Detailed information about what bridges/ seawalls are planned for renovation is included in BOC Resolution #16-328 and can be viewed at the Ingham County Parks website along with the entire Trails and Parks Comprehensive Report. A second round of applications will be accepted beginning Oct. 1, 2016 that will address new construction, identified as regional priority corridors in the Trails and Parks Comprehensive Report, and special projects (including blue ways) as well as repairs, rehabilitation, and long-term maintenance projects.
The
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Ingham County is pleased to announce that Resolution #16-328 was passed by the Ingham County Board of Commissioners (BOC) on July 26, 2016, awarding funding to the City of East Lansing, the City of Lansing, the City of Mason and Meridian Townships for bridge repairs for the trails. The trail and park millage, approved by voters in November 2014, generates approximately $3.4 million in revenue annually. In March, the Ingham County Board of Commissioners passed two resolutions, committing $5.5 million from the first two years of collected millage, to begin making improvements to Ingham County’s trail systems.
significant economic boost not just for the city, but for all of Metro Lansing. General Motors and their local supply chain is the gift that keeps on giving and we are so fortunate that they continue to grow and prosper right here in Lansing.”
MBA
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Online courses Start when you’re ready 6 terms per year, eight-week courses Choose your emphasis ERP using SAP Software Human Resource Management Logistics Management Marketing Value-Driven Organization
Learn more today! cmich.edu/OnlineMBA 877-268-4636 CMUglobal@cmich.edu
Central Michigan University is accredited by the Higher Learning Commission of the North Central Association of Colleges and Schools. CMU is an AA/EO institution (see cmich.edu/OCRIE). 45711 7/16
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Tenneco’s 70,000-square foot facility, located near Capital Region International Airport, opened June 5 and is responsible for sequencing exhaust assemblies (manufactured at Tenneco’s Litchfield, Mich. plant) for the GMC Acadia, Buick Enclave and Chevrolet Traverse models that are assembled at GM’s Lansing Delta Township plant. Tenneco is an $8.2 billion global manufacturing company with headquarters in Lake Forest, Ill. and approximately 30,000 employees worldwide. Tenneco is one of the world’s largest designers, manufacturers and marketers of clean air and ride performance products and systems for automotive, commercial truck and off-highway original equipment markets and the aftermarket.
YMCA OF METROPOLITAN LANSING LAUNCHES HEALTHY LIVING MOBILE KITCHEN On August 11, the YMCA of Metropolitan Lansing announced the launch of its newest program, the Healthy Living Mobile Kitchen, at a press conference at Baker Donora Center Park in Lansing, Mich. Funders, partners and
Jeff Scheibel, president and CEO of YMCA of Metropolitan Lansing, joins Casey Thompson, executive director of the downtown Lansing YMCA branch and Ashley Beversdorf, mobile kitchen coordinator, to celebrate the launch of the Healthy Living Mobile Kitchen.
supporters of the project came to hear how this year-round feeding and educational program will impact thousands of children and families in the tri-county area.
“The need is real. Too many of our families struggle every day to put food on the table, and oftentimes, they don’t have the extra money to feed their kids healthy lunches. The YMCA’s mobile kitchen is just what our community needs. By giving kids a healthy lunch, they will do better in school and they’ll grow up healthier and more active. This one step can change a family and a community,” said Lansing Mayor Virg Bernero. The mobile kitchen, a 54 passenger, handicap accessible bus, donated by Kellie Dean, president of Dean Transportation, has been retrofit with a demonstration kitchen which will serve meals to children year-round in
Children eating food provided by YMCA’s Healthy Living Mobile Kitchen
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partnership with the Lansing School District’s food vendor SodexoMAGIC and the Greater Lansing Food Bank.
a supportive, self-paced and fun atmosphere. He challenged club members to share and grow as speakers and leaders.
“Besides delivering meals, the demonstration portion of the kitchen will provide valuable hands-on education by showing people how to prepare seasonal foods, read labels, how to use foods that are readily accessible and affordable and even how to set up gardens and grow food,” said Kellie Dean, president of Dean Transportation.
Transportation Toastmasters meet every Thursday from noon to 1 p.m. in the MDOT Van Wagoner Building Lobby Conference Room. Located at 425 West Ottawa Street in Lansing, Mich. Guests are welcome. Please call Greg at (517) 241-3397 for directions.
Funding partners of the Healthy Living Mobile Kitchen include the Walmart Foundation; Dean Transportation; Lansing School District’s food vendor, SodexoMAGIC; Maloney Carpet One Floor & Home; Driven Collision and Skyline Outdoor, who provided the wrapping for the bus. The YMCA began a summer feeding program in 2011 for children in their camps. Then in 2013, the YMCA started to feed children during the school year at its afterschool program sites. In 2015, the Y served more than 30,000 meals and 30,000 snacks during the summer feeding program. In June of 2016, the Y served more than 9,700 meals and 4,900 snacks.
TRANSPORTATION TOASTMASTERS CLUB INSTALLS NEW OFFICERS FOR 2016-17 The Transportation Toastmasters Club installed officers for the 2016-17 Year at a special meeting held at the Spartan Hall of Fame Cafe. The new officers include: Greg Guikema, Ken Darga, Doug Couto, Vidya Pinnamaneni, Mary Gibbs, Minesh Mody (president) and Area Director Lisa Munroe. Club President Minesh Mody of Okemos is passionate about the way Toastmasters helps people speak and present more compellingly, think more clearly and listen more effectively in
CBRE|MARTIN NEGOTIATES OFFICE LEASE TO NATIONAL COUNCIL ON ALCOHOLISMLANSING REGIONAL AREA CBRE|Martin is pleased to announce that the National Council on Alcoholism-Lansing Regional Area (NCA LRA) has leased 5,000 SF of office space in Southwind Office
Providing service to your home and your office.
Universal Design. The
Meridian
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TheMeridianAdvantage.net Call 517-339-6300 for the Meridian Advantage or visit themeridianadvantage.net for more information.
1999 E. Saginaw Hwy. East Lansing, MI 48823
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Park located at 913 West Holmes Road in Lansing, Mich. NCA LRA decided to relocate its headquarters to its new office in Southwind Office Park in an effort to provide more efficient space and easy access for its clientele.
the regional affiliate of the National Council on Alcoholism and Drug Dependence. So this fresh new space will ensure more efficient and effective provision of a safe environment, healthcare and support services to the community,” said Jessica Robinson, executive director of the NCA LRA.
“We are embarking on a new and exciting strategic direction as Mid-Michigan Recovery Services Inc. and will continue our work as
Southwind Office Park is owned and managed by the Eyde Family and the NCA LRA lease fills a vacancy void in the building.
“We are pleased to bring in a tenant such as the NCA LRA to our family. They provide an extremely valuable service to our community and we are happy these services will be facilitated from a family-owned property,” said Matt Eyde on behalf of the landlord.
INVESTING IN THE
LOCAL LANDSCAPE MY CAR PITCHES WINNING IDEA AT THE HATCHING
At Mercantile Bank we’re committed to strengthening business here in the Lansing area. Over the past year we have financed numerous construction projects, helping businesses to develop and expand. All of this impacts new job creation and promotes economic prosperity which helps to build a stronger community. Moving business forward, it’s just another way Mercantile is Here to get you there.®
For more information, contact: Tom Hoban-Community President thoban@mercbank.com
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The winning idea, My Car, was presented by Amber Addrow-Pierson. With the My Car mobile application, parking customers can enjoy the luxury of finding, booking, requesting and paying for parking right from their mobile phone. Additional features that are included within the app are a vehicle locator and spot sharing. The July sponsors of The Hatching were the Greater Lansing Hispanic Chamber of Commerce and Lansing Black Chamber of Commerce. The Hatching is part of a community-wide effort to support local entrepreneurs and make the Lansing region a great place to start a business. This event helps move new, local business ideas from concept to reality and provides winners with funding, legal support, market research, office space and more. For more information about The Hatching or how entrepreneurs can submit ideas
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The Lansing Economic Area Partnership (LEAP) and Spartan Innovations hosted The Hatching on July 27, 2016 at Lansing Brewing Company in Lansing. Local entrepreneurs and supporters attended this event to cheer on the next big idea they’d like to see hatch in Lansing.
SEPTEMBER 2016
SPONSORED
AFFORDABLE, VOLUNTARY BENEFITS FOR EMPLOYEES BY THAD ANDERSON
Anderson & Associates Agency, a partner with Colonial Life, is located in East Lansing, off Lake Lansing Road by US-127. As the owner of Anderson & Associates, I have worked in East Lansing and Ingham, Eaton and Clinton counties since 2015. Colonial Life is the number one core enroller of employee benefits in the U.S. We pioneered voluntary benefits in 1939 and payroll deductions in 1955. Our workforce acts as benefit counselors to help employees bridge the gap with any holes in their current health insurance. Most of our services are free to the employer, with benefits being 100 percent voluntary and employee paid. Voluntary benefits are the fastest growing sector in the insurance industry due to the Affordable Care Act and rising healthcare costs. Our goal is to protect the incomes of hard working Americans today by not going bankrupt due to unplanned medical costs. Colonial Life products are designed so employers can offer them to employees and their families. Products and services offered
As a veteran of sales, customer service, and management for 13 years, not only am I passionate about Lansing area businesses, I am passionate about developing employees. We have promoted two MSU graduates to corporate positions with Colonial Life in 2016 from our agency. Our agency also has a footprint on the Lansing community. I am currently the Area Manager with Girl Scouts Heart of Michigan for East Lansing – I truly believe that GSHOM builds girls of courage, confidence and character who make the world a better place.
through our agency include benefits education, complimentary value-added services, advanced yet simple to use enrollment technology and quality personal service. We cater to small businesses with three to 100 employees, but we also work with large businesses, health brokers, school districts and cities in the public sector market. My overall objective is to continue developing the East Lansing district for Colonial Life. By continuing to stay focused on the principles of expansion, aggressive and attainable growth, full service and a strong agent field force, we will continue to enhance our reputation and customer base in the market.
Thad graduated from Walsh College in Troy, MI with a BBA in Business Management in 2007 and St. Clair County Community College in Port Huron, MI with an AA in Liberal Arts in 2005. Thad has been active in the Lansing area helping businesses and the community since September 2015. On top of being East Lansing's District Manager for Colonial Life, he is also an Area Manager for the Girl Scouts Heart of Michigan in East Lansing.
Reasons why employers choose Colonial Life End-to-end service Need enrollment assistance? Want to reduce administrative burden? We can help every step of the way. Money-saving strategies We’re constantly thinking about ways to save you money. Sound familiar? Personalized benefits counseling We meet 1-to-1 to help everybody get the benefits that are best for them. Which is also best for you.
To learn more, contact: Thad Anderson 517-336-3515 Thad.Anderson@ColonialLife.com
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©2016 Colonial Life & Accident Insurance Company, Columbia, SC | Colonial Life insurance products are underwritten by Colonial Life & Accident Insurance Company, for which Colonial Life is the marketing brand. 5-16 | AD-037
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to be considered for the live pitch competition at one of the monthly Hatching events, visit thehatching.org.
RATHBUN INSURANCE AGENCY CELEBRATES 60 YEARS IN BUSINESS Sixty years ago in 1956, The Rathbun Agency opened its doors with no customers and one
agency contract. Jack and Jim Rathbun started the agency from scratch and soon brought on their brother, Gene Rathbun. Current agency President, John Keel, joined the firm in 1965, recently celebrating his 50th year in the business.
an extensive career in the restaurant business, David Finkbeiner came on board in 2012. With the addition of Paul’s son, Ben Rathbun, in 2014, The Rathbun Agency is proud to claim three generations of family business.
Gene’s son, Paul Rathbun, came to work for the family business in 1983 and was later joined by his childhood best friend, Larry Pingel, in 1996. Leading the financial services division, Pat Leyser joined the agency in 2008, and after
The Rathbun Agency is well-positioned for the future because of its reputation in the community, a tradition of being involved in civic events and activities and its representation of many insurance carriers with strong claims service and competitive products.
Foreign Corrupt Practices Act
Export
sales & supply
Manufacturing Agreements
International Export Controls
In alignment with its goal of being a model corporate citizen, the agency began a Quotes for a Cause campaign at the end of 2015. Each month, the office donates $5 per new business quote to a nonprofit or charitable organization, regardless of whether the policy is actually purchased. Since last September, The Rathbun Agency has donated over $5,000 in total and partnered with Ele’s Place, Habitat for Humanity, Haven House and several other organizations.
Joint Ventures Foreign Trademarks
ITAR
Licensing
EAR
Empowered Official
distributor relationships
International IP Protection Acquisitions
Terms
Foreign Trade Zones
Business
Import
INCO
Tariffs
EXIM Bank
Intellectual Property Protection
“We like to think of ourselves not as people selling insurance,” says Keel, “but as people assisting others in buying insurance. Sure, we have good rates, but most people do not know a great deal about insurance and count on their agent to know them, educate them, and assist them in making good buying decisions.”
Customs VAT Tax
LEGAL ESSENTIALS TO EXPORTING
The Rathbun Agency presents Loaves and Fishes with a donation as part of Quotes for a Cause.
Foster Swift attorneys assist U.S. and foreign businesses with all aspects of international trade and transactions including acquisitions, exporting, manufacturing agreements, sales and supply agreements, distributor relationships, and international intellectual property protection.
NAI MID-MICHIGAN/TMN COMMERCIAL SELLS FORMER LANSING FAVORITE CLARA'S RESTAURANT
Let Foster Swift be Your One-Stop Resource.
Contact: ATTORNEY JEAN G. SCHTOKAL P: 517.371.8276 E: jschtokal@fosterswift.com
FOSTERSWIFT.COM
517.371.8100
LANSING | FARMINGTON HILLS | GRAND RAPIDS | DETROIT |
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NAI Mid-Michigan/TMN Commercial is pleased to announce the sale of 637 E. Michigan Ave – formerly Clara’s Lansing Station Restaurant. This landmark restaurant was purchased by the Gillespie Group and will be redeveloped into another theme restaurant. This project will be added to the Gillespie Group’s vibrant Stadium District. Jim Vlahakis represented both the Buyer and the Seller in this transaction.
CHEVROLET
2016 CHEVY CITY EXPRESS VAN ONLY 7 AVAILABLE!
PRICING STARTING AT $17,990.00 SEE DEALER FOR DETAILS VISIT LANSING’S LARGEST CHEVY DEALER, SHAHEEN CHEVROLET.
1.800.678.9561
632 American Rd. • Lansing, MI www.shaheenchevrolet.com L
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Part of the CBRE affiliate network
Part of the CBRE affiliate network
Part of the CBRE affiliate network
Our Asset Services team is the local expert in real estate management across all property types. We streamline operations, reduce costs, minimize risks and save you time. How can we help you transform your real estate into real advantage?
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1111 Michigan Avenue, Suite 300• East Lansing, MI 48823 +1 517 351 2200 • www.cbrelansing.com •
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