MiBiz May 26, 2020 print edition by MiBiz

Temps fill key roles as manufacturers reopen

SBA turns focus to PPP forgiveness

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MAY 26, 2020 • VOL. 32/NO. 16 • $3.00

Longer recession predicted without federal support for state, local budgets By ANDY BALASKOVITZ | MiBiz abalaskovitz@mibiz.com University of Michigan researchers told state officials at this month’s revenue estimating conference they anticipate a gradual economic recovery in the next few years, resulting in an unemployment rate of 6.8 percent by the end of 2022. The relatively optimistic projection, however, comes with a caveat: The researchers assume the federal government will provide hundreds of billions of additional stimulus funds to support state and local governments. Discussions over such support — with backers including Gov. Gretchen Whitmer and the Michigan Municipal League — have grown politically contentious in recent weeks because of Republican concerns about “bailouts” for allegedly mismanaged state budgets. In Michigan, state and local budgets are required to be balanced each year. Absent the federal help, economists predict steeper revenue shortfalls and a more prolonged recession from the coronavirus. “It makes the recession worse Bartik directly and indirectly” without the aid, said Tim Bartik, senior economist at the W.E. Upjohn Institute for Employment Research in Kalamazoo. Without federal support, state and local governments will cut spending, resulting in higher unemployment and less contract work for private companies. All of this reduces consumption and the ripple plays out in the economy through a multiplier effect, he said, while GDP could shrink by 4 percent. “The reality is, if state and local governments make budget cuts of this magnitude with the multiplier effect, that in itself is likely to make See BUDGETS on page 19

SERVING WESTERN MICHIGAN BUSINESS SINCE 1988

‘From knowing to doing better’

Workplace health screenings become the norm as state moves to next phases of reopening

Sisters Who Lead study offers ‘big wakeup call’ to employers on challenges for women of color By MARLA MILLER | MiBiz mmiller@mibiz.com

A screener takes the temperature of workers before they start their shifts at Cascade Engineering in Grand Rapids. COURTESY PHOTO

By ANDY BALASKOVITZ | MiBiz abalaskovitz@mibiz.com

he coronavirus pandemic never shut down D&M Metal Products Co. in Comstock Park, but it did change the way employees arrive at work. In what are now four staggered shifts that start at 5:30, 6:30, 7:00 and 7:30 in the morning, workers enter at the same door. Each of the roughly dozen workers for the shift spends less than 30 seconds answering a few questions and having their temperature checked. Barring any signs of COVID-19 symptoms, they proceed to the shop floor. “The process is really quick,” D&M President Bob Buist told MiBiz. These health screenings are required under an executive order signed by Gov. Gretchen Whitmer this month that reopened the manufacturing sector, and are becoming more widespread across the state. D&M, a metal fabricator, is also one of about 120 companies in Kent County that are sending the response data to local health officials in an effort to prevent outbreaks of the virus before they start. The partnership between the county Health Department, Michigan State University and the

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private sector is actively recruiting more companies to participate. Led by Walker-based supercenter retailer Meijer Inc., which had administered more than 1 million screenings across its various worksites earlier this month, the Kent County Back to Work program also is connecting companies with necessary supplies like thermometers. Officials hope the tracking program extends to neighboring counties. As of press time, screenings were taking place at more than 300 sites, as some companies have more than one location. Initial data had been sent to the county but hadn’t yet been fully analyzed, county officials told MiBiz. Officials say the data do not include personal information. Buist said the Kent County program has “really helped set a pace as this screening has been going on,” and that Meijer’s success with the program “helps a little guy like me.” D&M’s 58,000-square-foot shop north of Grand Rapids includes 55 employees. “I don’t have the resources to spend a lot of time and effort on this,” he said. “We’re just trying to make parts every day.” See HEALTH SCREENINGS on page 5

espite advanced degrees, ambition and experience, women of color in West Michigan continue to face unique challenges when it comes to getting hired and promoted, particularly for executive leadership roles, according to a new study. Sisters Who Lead, an affiliated organization of Grand Valley State University’s Division of Inclusion and Equity, recently released a regional workplace climate study that examines institutional behaviors that hinder women of color from rising to executive leadership or C-suite positions, or that deter them from staying at an organization. The study includes a survey in which most respondents reported that race made it harder for them to receive a promotion, while half agreed that gender played a role in missing out on a raise or a promotion. The study, “From Knowing to Doing Better,” offers valuable insights into regional workplace climates and the struggles for women of color, which companies can use to prepare for changing demographics. “The world is changing, the demographic landscape of the nation is changing,” said report co-author Shannon Cohen. “(Companies) have to grapple with the diversity of their talent.” See SISTERS WHO LEAD on page 18

Cities weigh creating ‘social districts’ to help bars and restaurants Public space could play key role in businesses’ profitability given capacity limits; state legislation is proposed By KATE CARLSON | MiBiz kcarlson@mibiz.com

s northern Michigan restaurants and bars reopen under occupancy limits and other restrictions, business leaders and city officials are considering ways to expand the footprint of existing restaurants to help boost revenue. One option may include “social districts,” which allow municipalities to approve specific activities in

locations by permit. The activities could range from the consumption of alcoholic beverages, sidewalk sales and expanded seating in a designated area. The concept — similar to ideas West Michigan business owners have floated in the past around “open container districts” — is drawing support in downtown Traverse City, where officials are considering closing a portion of Front Street to vehicular traffic to give customers more space to dine and shop outside. The city

is among the 17 counties in northern Michigan that were allowed to reopen on May 22 under an executive order by Gov. Gretchen Whitmer. The reopening of bars and restaurants up north gives a preview of what’s to come downstate. The idea also has support among Grand Rapids city leaders and business groups. The Grand Rapids City Commission moved quickly this past week to allow “social zones” across the city as part of a COVID-19 special event spanning June 1 to Nov.

30. Under the plan, permits would be granted for specific areas during the event. The resolution approved on Thursday gives a general framework for how the zones operate. “Hopefully as the governor has opened up some of the northern portions of the state, our turn is coming soon, and we want to get ahead of that as soon as possible,” Grand Rapids City Manager Mark Washington said during a May 19 city meeting. See SOCIAL DISTRICTS on page 20

Brokers adjust to new protocols, market shifts PAGE 11

INSIDE:

Education & Talent Development SEE PAGE 13

6.8.2020

UPCOMING ISSUES

Commercial Lending Report Contract Deadline: 5.27.2020

6.22.2020

Auto Industry Forecast Contract Deadline: 6.10.2020

7.6.2020

West Michigan’s Tribal Economy Contract Deadline: 6.24.2020

7.20.2020 Industry 4.0

Contract Deadline: 7.8.2020

8.3.2020

9 West Michigan Industries Distrupted by AI How should marketing change in the wake of COVID-19?

Contract Deadline: 7.22.2020

Aerospace suppliers brace for continued turbulence

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MAY 11, 2020 • VOL. 32/NO. 15 • $3.00

SERVING WESTERN MICHIGAN BUSINESS SINCE 1988

Experts warn of possible mental health ‘aftershock’ from COVID-19

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EXPLORING WHAT’S NEXT Experts preview workplace changes as economy slowly re-emerges

By MARK SANCHEZ | MiBiz msanchez@mibiz.com

f the SARS outbreak 17 years By MARK SANCHEZ | MiBiz ago in Asia is an accurate indimsanchez@mibiz.com cator, behavioral health care providers could see a patient eople who have been working from surge in the coming weeks and home for weeks because of the months as the COVID-19 pandemic COVID-19 pandemic will return to a takes an emotional toll on people. decidedly different workplace than One-third of the people in Asia they had previously once the economy gets were unable to return to work full going again. time after the SARS pandemic, six Changes will span a range of workplace in 10 experienced fatigue, and half environments, including offices, shop floors, had difficulty sleeping. breakrooms and conference rooms. Wearing In Hong Kong, the suicide rate face masks and having more distance spiked nearly 32 percent for two between workers will become the norm, years after SARS. Hong Kong also along with routine temperature checks and experienced “increases in persistent continually cleaning and sanitizing the workdepression, anxiety, panic attacks, place, tools, equipment and workstations. psychomotor agitation, psychotic PAGE 12 PAGE 14 Those and other pracsymptoms, delirium, and suicidtices are all part of the proality,” accordMARCH 16, 2020 • VOL. 32/NO. 11 • $3.00 SERVING WESTERN MICHIGAN BUSINESS SINCE 1988 www.mibiz.com verbial “new normal” for ing to a white employers working to navpaper from Pine igate the deadly pandemic Rest Christian that has disrupted daily rouMental Health tines, thrown the economy Services on the into recession and may linpotential menSmall businesses around West Michigan have been affected in many ways GR debates increasing ger for many months until a tal health effects Kennedy sites for marijuana by the ongoing pandemic. While some are seeing increased business, most Eastburg vaccine is developed. of the COVID-19 businesses; equity, “As business leaders, you have to make pandemic. companies are being forced to deal with the fallout by getting creative, manlocal ownership sure you’re taking the responsibility for your The white report pulls data from aging cash and finding new ways to stay engaged with customers and cliconcerns remain employees,” Kentwood-based Autocam a number of sources to issue a call to Medical Devices LLC CEO John Kennedy action for care providers to prepare ents. In this Coping with COVID-19 special report, MiBiz speaks with two said during a recent back-to-work webinar for the “aftershocks” from the panBy SYDNEY SMITH | MiBiz dozen West Michigan companies to hear how they’re navigating the current hosted by Advantage Benefits Group Inc. “It’s demic and “minimize the fallout of ssmith@mibiz.com incumbent on us as businesses to make sure COVID-19 on mental health in our uncharted waters. SEE PAGES 12-19 communities.” See WHAT’S NEXT on page 8 GRAND RAPIDS — Following “ Th e w ar n in g sig n s are mixed messages from the Grand there right now that we could in Rapids City Commission late last Michigan experience a significant By MARK SANCHEZ | MiBiz month, marijuana advocates surge in behavioral health needs msanchez@mibiz.com hope city officials will ultimately that emerge out of this COVID criopen more properties for medisis,” Pine Rest CEO Mark Eastburg he coronavirus outbreak that’s batcal and recreational facilities. By ANDY BALASKOVITZ | MiBiz benefits for people in their state’s Program loan — told MiBiz. “We ought to be precall hosted by the West Michigan Policy tered Wall Street andactive caused supply On Feb. 25, the commission abalaskovitz@mibiz.com system. In Michigan, this means workwhich requires 75 pared asimplications a state and aofcommunity Forum. As of early May, Sturgis Molded Visit mibiz.com for ongoing coverage of the business COVID-19 in West Michigan. chain disruptions for some manuwent back and forth on appliers unemployed a result oftransthe panpercent of the loan for that in case that happens.” Products was running at about 10 perfacturers has yet toasinterrupt cations for both types of facilis some employers actions, express although demic could receive up to $962 aare week. to be used for payT he s t r e s s, a n x iet y a nd cent capacity involving transportation more conversations ties. The city has approved 24 PAGE 2 PAGE 13 concern about retainfederal areaccording available for roll in order to be depression the pandemic trigand medical devices. The company has occurring asThe part of duebenefits diligence, licenses for medical marijuana ing workers who are up to 39 weeks, while state benefits forgiven — faced gers can come from the loss of a about 200 employees. to earnM&A professionals. businesses, while another 14 APRIL 27, 2020 • VOL. 32/NO. 14 • $3.00 SERVING WESTERN MICHIGAN BUSINESS SINCE 1988 www.mibiz.com ing more income through were more workers backlash from job or income, grief, and uncer“I’ve called people and there has Deals that areexpanded in processtoinvolve a deeperand are waiting for approval. The unemployment benefits than their extended for 26 employees, since tainty about the future. At Pine been communication that said, ‘I make dive into due diligence inweeks. situations where city hasn’t finalized recrePresta normal paychecks, researchers say Media have shown conthe loan effectively Rest, “we’re experiencing a rise more by not coming in,’” Presta told one reports company is acquiring ational marijuana zoning reglong-term structural fixes are needed cern among employers who pay less means workers would be paid their in many of the stressors that are MiBiz. “That’s out there.” another that sources raw ulations and won’t start acceptto state and federal programs. than the amount of benefits worktypical wages. known to increase risk for suiSturgis Molded Products’ operamaterials or components ing applications until April 20. The $2.2 trillion CARES Act passed ers are receiving. In at least one case Kelly Presta, vice president at Sturgis cide,” Eastburg said. tors and first-line positions make By JESSICA YOUNG | MiBiz Ea rlier t his mont h at t he West Michiga n from China. Buyers are Hours after voting to delay in late March included provisions to in Washington state, a company Molded Products Co., shared these less than the maximum amount See MENTAL HEALTH on page 6 Symposium jyoung@mibiz.com Automotive Suppliers in Grand Rapids, asking for more informarecreational and pause mediadd $600 in weekly unemployment that received a Paycheck Protection concerns during an April 22 conference See UNEMPLOYMENT on page 5 Mike Wall, director of automotive analysis in Grand tion about supply chains, cal applications, the City he automotive industry is scrambling to strike Rapids at IHS Markit, forecasted light vehicle sales backup plans and the Commission reversed course SBA races to provide relief a balance between near-term execution and of 16.8 million units in the U.S. this year, in the segcapabilities of replacement after the six commissionto small businesses, but P E R I O D I C A L S unsteady industry disruption from the novel ment that includes cars, utility vehicles and pickup suppliers. ers could not agree on how to some hiccups remain Brown coronavirus outbreak. trucks. “It’s still very new. move forward. A last-minute That’s according to industry experts who say the Already, that outlook is changing as COVID-19 conEveryone’s trying to figure it out on the fly, dispute among commissioners By MARK SANCHEZ | MiBiz effect of the virus, which has been spreading around tinues to develop across the country, he told MiBiz. but if clients were selling source parts from also involved equity and local msanchez@mibiz.com the globe since late December and shut down producAs of this report, IHS Markit was still finalizing a China, you’re going to have to make sure ownership. tion in specific regions, has shifted forecasts for global revised sales projection, but Wall expects the new forethey have a backup supply-chain plan in Commissioners were conhe sheer volume of small automotive production and U.S. sales downward. cast to drop to 16.5 million units. case there is a major disruption,” said Mike sidering zoning amendments businesses that have Indeed, Gov. Gretchen Whitmer announced “Everything is happening so quickly and there is Brown, who leads the M&A practice at investrecommended by the Planning MARKcases SANCHEZ | MiBiz sought federal relief the state’s first two presumptiveBy positive so much volatility that given the circumstances, 16.5 ment bank Charter Capital Partners LLC in Commission that would have msanchez@mibiz.com loans illustrates the PAGE 11 in Oakland and Wayne counties on March 10, fol(million) will still be a very good year,” Wall said. Grand Rapids. eliminated a waiver process depth and scope of the economic See SHIFTING DYNAMICS on page 4 lowed by a state of emergency declaration. for sensitive land uses like reliSee DUE DILIGENCE on page 9 n normal times, Trinity Health’s seven pain brought on by the COVID-19 gious institutions and opened hospitals across Michigan generate compandemic. more properties for cannabis bined operating income of $9 million to The U.S. Small Business development. $10 million a month. Administration quickly blew Marijuana advocates have But the current operating environment through $349 billion in just 14 sought to relax distance requireis far from normal, and the COVID-19 pandays and approved loans for 1.6 ments in order to expand the Downtown Grand Haven. MIBIZ PHOTO: MARLA MILLER demic has pushed the Catholic health sysmillion small businesses nationnumber of properties qualified tem’s financial performance deep into the wide before halting new applifor marijuana business use, red. seeking a constitutional amendment cations April 16 for the Paycheck By ANDY BALASKOVITZ | MiBiz graduated, or progressive, income tax. schools and road and water infrastrucwhich they say could also help The operations for percent Trinity Protection Program. That’s as abalaskovitz@gmail.com to Michigan change Michigan’s flat 4.25 The Democratic-backed proposals have ture starting in 2022. The plan would address concerns over a lack of Health, the Livonia-based parent corporation many loans as the SBA processed income tax to a graduated structure failed to gain traction in the Republicanreduce the state income tax rate for local ownership. of Mercy Health in West Michigan Saint in the previous 14 years combined. s progressive political advobased on income. The Boardand of State held state House and Senate. individuals with income of $175,000 or Joe Neller, co-founder and Health Congress last week allocated cates seek lower state income Canvassers is Joseph expectedMercy to decide in the In t he late 1960s a nd 1970s, less and joint filers with income at or chief government affairs offiSoutheast another $320 billion for the PPP, tax rates for most Michigan coming weeksSystem whether in organizers can Michigan voters by wide margins below $350,000. According to organizcer at Dimondale-based Green Michigan, recorded a $50 $30 billion of which will go to federresidents while higher earncollect signatures in hopes of putting rejected ballot proposals for a graduers, 95 percent of Michigan residents Peak Innovations LLC, said the By MARLA MILLER | MiBiz the region’s busiest tourist towns, as Main Streets million operating loss for ally designated community develers pay more for infrastructure needs, the question to voters in November. ated income tax. Such a change would would pay a lower state income tax rate Planning Commission rejected mmiller@mibiz.com across the state are bearing the brunt of COVIDMarch, “and remember opment financial institutions, plus the state’s leading business group is “If this qualifies for the ballot, require a constitutional amendment. than they do now. a provisioning center proposed 19 closures. in March half the month banks and credit unions with less bracing for a highly contentious politfrankly, it would be war,” said Rich However, supporters say growing Of the 41 states with income taxes, by his company because of the s the owner of longtime site’s downtown some restaurants and breweries have pivwas a normal than $10 billion in assets. Banks ical campaign. Studley, president and CEOmonth,” of the income disparities and declining pub33 have a progressive structure. Federal proximity toWhile a church, Grand Haven retailer Down To Earth, oted to takeout and delivery, retailers deemed nonsaid President and CEO and credit unions with assets Organizers behind the Fair Tax Michigan Chamber of Commerce. lic services have shifted public opinion. income tax also follows a graduated even though the company had Sholeh Veiseh has turned toahosting essential fall into more of a gray area. Some have shut Rob Casalou.has opposed between $10 billion and $50 billion Michigan campaign, which was For years, the Chamber The Fair Tax Michigan plan would raise model. waiver virfrom the church. tual fashion shows and offering sales on down entirely, while others are transitioning online to The operating loss will get another $30 billion. announced in late February, are Casalou efforts in the state Legislature for a See INCOME TAX on page 3 $1.5 billion in additional revenue for See STATUS QUO on page 8 social media to bring in some revenue during the remain at least partially open for e-commerce. stems from the lost revThe legislation also directed coronavirus closure. Under a new executive order issued April 24, enue from canceling non-essential surger$60 billion in funding to the SBA’s Gov. Gretchen Whitmer’s initial executive those stores now have more clarity: Retailers sellies and procedures, combined with ramped Economic Injury Disaster Loan P E R I O D I C A L S order closing non-essential businesses through ing non-essential items can open for curbside up spending to test and care for COVID-19 program Congress set up earlier April 30 shuttered most storefronts on Washington pick-up and for delivery. patients. in the pandemic. See FINANCIAL CRISIS on page 6 Avenue, an established shopping district in one of Before running out of money See LAKESHORE RETAILERS on page 10 for the first round of the PPP, the SBA approved relief loans totaling $10.38 billion for nearly 43,500 PAGE 21 small businesses in Michigan. Executives at banks and credit unions say applications for the PPP came from across the economy, including Main Street-type businesses, companies up to the SEE PAGE 16 500-employee threshold, the hosBy JOE BOOMGAARD | MiBiz in-person dining and drinking in crews for to-go orders, curbside pickup In a survey compiled by Boulder, pitality sector, restaurants, manujboomgaard@mibiz.com their establishments in an effort to or home delivery of beverages and Colo.-based Brewers Association in facturers and retailers that have curb the spread of COVID-19. For food. Meanwhile, distilleries have early April, 14.1 percent of responbeen hurt by the pandemic and ichigan’s craft beverage the first time in many of their his- repurposed their stills to produce eth- dents indicated their business could resulting stay-at-home orders. industry is facing a chal- tories, the owners of breweries, dis- anol in an effort to answer the call to sustain for four weeks or less if the “If you connect enough dots, lenge with the economic tilleries, wineries and cideries have boost critical supplies of hand sanitizer. current conditions persisted. An addiand some you have to confallout from the corona- been forced to lay off staff members These scrappy and resilient com- tional 45.8 percent of respondents said nect more dots than others, virus pandemic that is unlike any — their companies’ direct connec- panies are finding revenue wher- their businesses could only sustain for you can almost see where every other in its history. tions with consumers in their tap- ever they can, but few could have one to three months if the social dissingle human being and every Many companies have been com- rooms and bars. prepared for such an abrupt sea tancing measures and restrictions on See SBA LOANS on page 8 pletely closed for weeks as a result The craft beverage companies that change that’s been brought on by sit-down service remain in place. of state-mandated orders to end all remain open are leveraging skeleton the pandemic. See CRAFT BEVERAGE on page 14

COPING WITH COVID-19

Former Muskegon coal plant to get new owners

— C ORON AV I RUS I N M IC H IG A N —

Virus concerns drive additional due diligence in M&A transactions

West Michigan will work differently post COVID-19

How employers can help with mental health

COVID-19 highlights structural changes needed for unemployment system, researchers say

Automotive analysts see shifting dynamics amid coronavirus spread

Health systems face financial crisis brought on by pandemic

Construction industry adapts to new safety protocols

Leaders push for action to raise wages

After unbridled growth, Michigan craft beverage companies gird for devastating lows

Small Business

Contract Deadline: 8.18.2020

9.14.2020

Family Business

Contract Deadline: 9.2.2020

Business of Senior Care

PAGE 12

Diversity/Equity/Inclusion Contract Deadline: 9.16.2020

10.12.2020 Industry 4.0

Contract Deadline: 9.30.2020

Foodservice disruptions cause crisis for farmers

9.28.2020

INSIDE:

8.31.2020

Contract Deadline: 8.5.2020

Michigan Chamber prepares for ‘war’ over graduated income tax proposal LAKESHORE RETAILERS ADAPT, MOVE ONLINE AS SOME SCRAMBLE TO STAY AFLOAT

Automotive Supply Chain

Spectrum Health prioritizes buying local

STATUS QUO

TRIAL BY FIRE:

8.17.2020

INSIDE:

Drinking economy SEE PAGE 14

10.28.2020

M+A: Deals & Dealmakers Awards Contract Deadline: 10.14.2020

11.9.2020

Food Economy

Contract Deadline: 10.28.2020

11.23.2020

Education & Talent Development Contract Deadline: 11.11.2020

12.7.2020

Construction Wrap-up

Contract Deadline: 11.25,2020

12.21.2020

Crystal Ball Special Year-End Edition

Contract Deadline: 12.9.2020

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DTE, Consumers shareholders reject calls for more political spending disclosures By ANDY BALASKOVITZ | MiBiz abalaskovitz@mibiz.com

hareholders of Michigan’s two major investor-owned utilities have recently rejected calls for more transparency on the companies’ contributions to tax-exempt nonprofit advocacy groups. While similar investor resolutions have failed for years at annual shareholder meetings for DTE Energy and Consumers Energy, the calls come amid recent criticism and state sanctions on the utilities’ political spending. Last year, the Michigan Public Ser v ice Commission barred Consumers from contributing to 501c(4) nonprofits — the tax-exempt, “dark money” social welfare groups that don’t have to disclose contributors — after the company was linked to a spike in political spending during the 2018 election. Consumers had contributed $43.5 million to a group called Citizens for Energizing Michigan’s Economy since 2014, including $20 million ahead of the 2018 election cycle. D et r oit-ba s e d D T E Energ y faced criticism last year from utility watchdog groups over its ties to multiple 501c(4) groups, including Michigan Energy First, that — MARY MINETTE continue to promote energy Director of Shareholder Advocacy at p o l i c i e s a l s o s u p p or t e d Mercy Investment Services by the utility. The policies involve limiting pay ments to customers who generate their own solar power and third-party energy developers. While it’s unclear whether DTE contributed money to the groups, multiple DTE officials serve on the nonprofits’ boards. Michigan Energy First also has assumed names of Michigan Energy Promise and the Alliance for Michigan Power. A DTE spokesperson referred comments about Michigan Energy Promise to the nonprofit. Eric Doster, an Okemos attorney who’s listed as the registered agent of the nonprofits, would not disclose the group’s contributors. Doster said the DTE officials’ board positions are “the only link” between the nonprofit and the utility. “I don’t care about their resolution,” Doster said of the DTE shareholders. The DTE resolution was brought by Mercy Investment Services, a Missouri-based company affiliated with the Sisters of Mercy that holds 850 shares in DTE. It called DTE’s policies on corporate political disclosures “deficient” and relying on publicly available information “does not provide a complete picture of the company’s electoral spending.” DTE shareholders rejected the resolution 63.5 percent to 36.5 percent. Mary Minette, Mercy’s director of shareholder advocacy, said “very uneven reporting” among companies’ political disclosures and lobbying activity has “been a longstanding concern in the investor community.” While companies, including utilities and their political action committees, are required to disclose political contributions to campaigns under state and federal election law, the same rules don’t apply for taxexempt groups. “We see a real reputational risk to that,” Minette said. “Political spending ever since the (2010) Citizens United decision is really seen as a testament of where a company stands.”

“We see a real reputational risk to that. Political spending ever since the (2010) Citizens United decision is really seen as a testament of where a company stands.”

She added: “We’re long-term shareholders. We have been talking to the company for a number of years about this.” DTE spokesperson Peter Ternes said the vote result this month “is in alignment with the majority of its shareholders.”

Publisher Brian Edwards / bedwards@mibiz.com Associate Publisher Denise Montambo / denise@mibiz.com

‘Unnecessary’

Editor Joe Boomgaard / jboomgaard@mibiz.com Managing Editor Andy Balaskovitz / abalaskovitz@mibiz.com (energy, policy) Senior Writer Mark Sanchez / msanchez@mibiz.com (finance, health care, life sciences) Staff Writers Kate Carlson / kcarlson@mibiz.com (real estate & development, small biz) Jessica Young / jyoung@mibiz.com (manufacturing, agribusiness, nonprofits) Contributing Reporters Jayson Bussa, Marla Miller, Jane Simons Copy Editor Claire Boomgaard

In a statement against the resolution, DTE’s board of directors said the “overly specific disclosure contemplated by this proposal is unnecessary, would hold the Company to a higher standard than other participants in the political process, and could have negative consequences for the Company.” The board goes on to say it has opposed similar proposals going back to 2008. Since then, they have been rejected 10 times, the board said. At the annual shareholder meeting last month for Jackson-based CMS Energy Corp., Consumers’ parent company, investors rejected a similar resolution 65 percent to 35 percent. The resolution was brought on behalf of the New York State Common Retirement Fund, which holds more than 588,000 shares of CMS stock. It called on CMS to “fully report its political spending and its policies and procedures for making political contributions with corporate funds,” Patrick Doherty, director of corporate governance at the New York Office of the State Comptroller, said during the virtual shareholder meeting last month. “As longtime shareholders of CMS Energy, our fund supports policies that apply transparency and accountability to corporate political giving,” Doherty said in the meeting. “Company executives exercise wide discretion over the use of corporate resources for political purposes, and relying on only limited data from the Federal Election Commission and the Internal Revenue Service can give shareholders an incomplete and sometimes misleading picture of a company’s political spending. Our fund believes that a complete disclosure by the company is necessary for investors to be able to fully evaluate the political use of corporate funds.” Doherty could not be reached for comment. Consumers spokesperson Katelyn Carey called the shareholder proposal “unnecessary and would cause CMS to incur undue costs and administrative burdens without commensurate benefit to our stakeholders, including shareholders.” Carey added that the request is “not in the best interests of CMS or its shareholders,” is “duplicative” of the company’s governance and oversight practices, and “would not provide shareholders with any more meaningful information than is already publicly reported.” Last year, the MPSC barred Consumers from making political contributions to 527 and 501(c)4 groups until at least late 2020, and the company “does not currently have plans” to make contributions in the future, Carey said.

Transparency needed Minette says energy companies fall in a unique space and are subject to stringent state and federal regulations. Further, public utilities across the U.S. — including DTE and Consumers — are increasingly making clean energy and climate change pledges, and investors should know how corporate funds are being used in advocacy campaigns, she said. The Center for Political Accountability issues an annual rating system of 399 companies based on their political spending disclosures. Utilities leading on political disclosure transparency include Ameren, Sempra Energy and Dominion Energy. CMS ranks in the second tier of the index, while DTE ranks in the fourth tier. “A lot of utility companies are doing quite a good job of disclosing political spending so investors know what they’re doing and see they are managing the risk well,” Minette said. “But DTE is really lagging in that area.”

MiBiz hires experienced reporter to cover real estate and development, small biz By MIBIZ STAFF GRAND RAPIDS — MiBiz Inc. has hired reporter Kate Carlson to cover real estate and development and small businesses for its West Michigan publication. Carlson, who lives in Grand Rapids, comes to MiBiz from the Holland Sentinel, where she spent nearly two years covering business, development and local government in the West Michigan region.

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Published since 1988 MiBiz® is a registered trademark of MiBiz, Inc.

She will contribute to MiBiz’s increased focus on small business coverage during the COVID-19 pandemic. “Kate is a true believer in journalism and a student of the craft,” said MiBiz Editor Joe Boomgaard. “We’re excited to have her join the team at MiBiz and help deliver a high caliber of business news that matters to our readers, and that they won’t find anywhere else.”

Carlson previously was a reporter at the Midland Daily News and a reporting intern at MLive Media Group and the San Antonio Express-News in Texas. She was the former Editor-inchief at Central Michigan Life, the student newspaper at Central Michigan University, where she earned her degree in journalism. Carlson can be contacted at kcarlson@mibiz.com.

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MiBiz / MAY 26, 2020

MANUFACTURING

Manufacturers turn to temps to fill new workplace roles By JESSICA YOUNG | MiBiz jyoung@mibiz.com

emporary workers were some of the first people to lose manufacturing jobs when the coronavirus started to spread into the Midwest, and they also filled in the gaps left by the highly contagious virus at essential businesses. Now experts say they’re filling key roles at companies that once again are ramping up production. In manufacturing facilities, that includes new non-conventional positions such as temperature screeners implemented to meet the safety demands of the post-shutdown workplace. Fettig, a Grand Rapidsbased employment agency, is among the companies staffing workplace screeners in manufacturing plants across the region. “We have a lot of people that are working as temperFettig ature screeners today. That was a job that we never had before,” said President Mike Fettig. He estimated that only about 15 percent of workplaces were pre-screening employees before Gov. Gretchen Whitmer ordered them to do so as part of the state’s economic reopening Burkel plan. Fettig expects the need for people trained to screen incoming workers — and possibly incoming patrons — will increase as more businesses open their doors. After an initial “wave of mass layoffs,” the company is back to about 70 percent McPhee of its pre-crisis staffing levels, Fettig said.

First to return Temporary workers lost their jobs in manufacturing plants at least a week before the state of Michigan ordered most businesses to close to prevent further spread of COVID-19, according to Shannon Burkel, chief client officer at Staffing Inc., a division of Axios Inc. Employers in the region “immediately” laid off “well over 50 percent” of the Grand Rapidsbased staffing company’s employees, Burkel told MiBiz. While many companies idled production under the state’s stay-at-home orders, others needed to add staffing quickly to meet the demand for personal protective equipment and medical equipment. For some West Michigan companies, that meant bringing in temporary workers to fill in gaps in production and supplement existing

MAY 26, 2020 / MiBiz

groups of internal employees within the plants, said Burkel, whose company helps staff about 200 manufacturing businesses across the region. “We had many of our client partners start making something new or something that was a little bit of a spin-off of what they currently were making, and then they were deemed essential,” Burkel said. “We got to a temporary employment level that did steady up over the last five weeks because there was this group of businesses shifting and making face shields, masks, gowns, parts of the swabs for testing. Those people remained working.” After temps are placed on a job site, temporary staffing agencies continue to act as their employer, which forms some unique challenges, especially when it comes to safety. For the first few weeks of the crisis, and while information on how to protect workers from the virus was still being perfected, precautions like protective gear and social distancing varied widely based on individual placements, according to Maggie McPhee, director of information services at The Employers’ Association in Grand Rapids. However, since Whitmer released executive orders containing clear safety procedures to be implemented in workplaces that began reopening in the past few weeks, McPhee said there is more uniformity among worksites in the region. “The preparedness plans, the temperature checks and the health questionnaires are the three big things that I’m hearing about,” McPhee said.

Facing challenges Even before the crisis when job sites were working under relatively normal conditions, temporary workers experienced higher rates of workplace injuries than permanent employees, according to the Occupational Safety and Health Administration (OSHA). These vulnerabilities may be multiplied during a health crisis like COVID-19. Currently, temporary workers in Illinois are petitioning Gov. J.B. Pritzker’s office for help because they allege

employers are not respecting the state’s safety guidelines. Even at global tech companies like Facebook and Google, temporary workers were not granted remote access to their work during the crisis and were forced to commute to job sites even while permanent employees were directed to work from home, according to multiple reports. While temporary workers face added vulnerabilities, they also may stir up increased fear among permanent employees or face discrimination because of their temporary status, according to McPhee. “Regular employees don’t necessarily want the temps in there because they don’t know where they have been and they don’t know what they’re coming from or anything about them,” she said.

“West Michigan manufacturers care about their employees, and absolutely it’s coming through time and again with the calls and with the practices that they’re putting in place. These people really want their people to feel safe and be safe at work.” — MIKE FETTIG President of Fettig

Filling gaps Still, temporary workers are quickly filling in the gaps left behind by employees who may have shown symptoms of COVID-19, who feel uncomfortable coming back to work or who have to remain home to take care of family members, according to Fettig. “We’ve had thousands of people working through this period of time,” he said. “We’ve been extremely busy with helping essential employers maintain their staffing levels and grow and then also very busy with staffing companies that have built whole new programs.” Fettig is administering “constant” testing of its workforce, he added, noting five people staffed by the company have tested positive for the coronavirus. “I thought with having as many employees that we had that we would have hundreds sick, or I expected we’d have whole groups of people getting sick, and then maybe even some of our worksites needed to be shut down,” Fettig said. “We’ve had hundreds of people tested and a lot fewer people test positive than we expected.” Fettig credits the relatively few outbreaks of the highly contagious virus in manufacturing plants to the caution and concern from the region’s employers.

Finding growth Whether the state government allows more businesses to reopen quickly or not, the need for temporary workers will persist. At Fettig, any return to staffing levels from before the crisis would likely stem from placing workers in jobs that didn’t previously exist, especially given persistent concerns about some of the state’s largest manufacturing sectors. “The reports I’m getting from the automotive sector that we service are pretty bleak and still seem pretty uncertain. I would say it is going to still be down,” Fettig said. “If we are back to 100 percent this fall, it’s because of additional business landed and additional contracts awarded to us because we’ve delivered throughout this period of time. We are getting some notice from other businesses that were not our customers before the shutdown.”

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Manufacturers tap into new vendors to meet safety protocols in wake of COVID-19 By JESSICA YOUNG | MiBiz jyoung@mibiz.com

eople line up early at manufacturing plants to have their temperature taken by registered nurses who were laid off from hospitals in the chaos of the COVID-19 crisis. It’s a scene playing out at dozens of locations in West Michigan as manufacturing plants fire back up and the first regions of the state reopen after weeks of idling and isolation. Grand Rapids-based Healthbaar LLC, which was officially launched on May 6, is one of many companies that are supporting manufacturers as they open with strict restrictions to prevent further spread of the deadly coronavirus and protect workers. “I think everybody and their brother is trying to put out guidance on how to reopen safely and then that guidance goes to an HR person or somebody in that company’s leadership,” said Nate Baar, president of Heathbaar. “There is a lot of it that is kind of out of their realm of knowledge because you’re mixing business and health care in a really different way.” A fever is one of the first symptoms of the virus, which is why many employers are using a health pre-screening that includes regular temperature checks. Screening the workforce will also provide companies with the opportunity to track sickness trends among their workers. This process may better help them determine whether operations need to be stopped for a period of time or if specialized cleaning needs to take place. “It’s a way to identify some trends concerning things going on potentially in the workplace and they may prompt some additional interventions for cleaning,” Baar said. “Maybe you close the office down for a day and let things settle. It’ll be different recommendations depending on things we were seeing and what tracking we’re having.”

HEALTH SCREENINGS Continued from page 1

Grand Rapids-based startup Healthbaar LLC offers outsourced health screening services for manufacturers and other companies. COURTESY PHOTO

on,” Baar said. “If it’s just an individual’s general appearance, it might be their color or tone or if they’re flushed. It might be sweating or diaphoretic or certain breathing patterns. It’s all of those visual assessment skills that you gain from seeing sick people and treating sick individuals and taking countless vital signs.” One of the many unanticipated outcomes of the COVID-19 pandemic was a significant workforce reduction in hospitals, Baar said. He is a registered nurse himself with a background in acute care and emergency departments. His company currently employs 35 clinicians who are trained in medicine, graduated from nursing programs and have at least a year of experience in acute care settings. Healthbaar offers a chance for laid-off clinicians to work as contractors, and on their own time, Baar said. Under-employed and regularly employed clinicians also can pick up extra work with the company. “I love the model of Uber and those services that connect with the final end-user in their own setting and their own terms,” Baar said. “Health care needs to be very simplistic but convenient. My future vision is seeing what services we could take that are typically provided within the four walls of an organization, or that are within the scope of a nurse or nurse practitioner, and mobilize those and do it in a way that’s accessible to everybody.”

Outsourcing model Health screenings are just one of many new or expanded services that manufacturers are looking to outsource because of COVID-19, according to John Walsh, president and CEO of the Michigan Manufacturers Association. “Manufacturing is making the greatest use of third-party vendors to provide personal protection equipment, disinfecting and sanitization services and signage,” Walsh said. “There has been an increasing need for legal, accounting and HR services to assist with the Payroll Protection Plan,

unemployment insurance matters and risk-mitigation.” Homedics Inc., based in Oakland County, is providing needed but still scarce protective gear to manufacturers. Signal Restoration Services, a Plymouthbased commercial and residential property damage restoration services company, has been disinfecting workspaces between shifts at multiple locations. Safely6ft.com, another new company, is making signage about how to prevent the spread of COVID-19. “Employers and employees are working together to ensure a safe and productive workspace,” Walsh said, adding that “the greatest number of questions” he has received over the past two weeks have been about “the pre-screening process, how to educate employees about new safety and HR rules and access to PPE vendors.” However, cleaning facilities and screening employees also bring additional costs to the region’s manufacturers, many of whom will face decreased efficiencies because of social distancing regulations, as well as lower demand brought on by the economic fallout from the virus. “The concern regarding associated cost arises primarily from the fact that our manufacturers, both large and small, have suffered an enormous economic setback as a result of the stay-home order and softening worldwide demand,” Walsh said.

Staying flexible Baar is hoping that his “a la carte” health care service model will be convenient and scalable to the budgets of manufacturers of all sizes. “We’re anticipating the next few weeks to be very busy,” Baar said. “We want to be as customer-friendly as possible, so we are trying to maximize the flexibility of everything. You order what you want, you get what you ask for and we’re not going to oversell or undersell. We’re going to try to meet you exactly where you are.”

Experience matters Employers can also choose to send tracked data to the Kent County Back to Work Health Check, a collaboration of the Kent County Health Department and Michigan State University College of Human Medicine. The data collected does not include personal employee information, according to Baar. Some manufacturers have relied on their own human resources departments or other internal employees to perform the required health screenings, while others have hired temporary workers, but Baar said there are many more benefits to hiring someone who is trained in privacy and general medicine to be the gatekeeper. “We do our visual assessments continuously and there are things that we clue in Visit www.mibiz.com

“I love the model of Uber and those services that connect with the final end-user in their own setting and their own terms. Health care needs to be very simplistic but convenient. My future vision is seeing what services we could take that are typically provided within the four walls of an organization, or that are within the scope of a nurse or nurse practitioner, and mobilize those and do it in a way that’s accessible to everybody.” — NATE BAAR President of Healthbaar LLC

Cascade Engineering Inc., a diversified manufacturer with 10 facilities and about 800 employees in the Grand Rapids area, also has been submitting its health screening data to the county. It has reported two positive COVID-19 cases from workers. Sharon Darby, Cascade’s director of environmental, safety and sustainability, says the company has created a detailed work safety “pandemic guide” that includes cleaning, social distancing and job duties. The state Department of Labor and Economic Opportunity also has issued best practices for manufacturers that include eight steps for companies to follow involving administrative controls, hygiene and personal protection equipment, among others. Although Cascade had scaled back operations, the guidelines had been in place for several weeks before Whitmer “threw a wrench” in its operations by requiring screenings and temperature checks. “It’s going well,” Darby said of the screenings. “Our employees are happy about it — they wanted it. We’re seeing a lot of compliance and people taking it seriously.”

Six phases With health screenings expanding and the reopening of bars and restaurants in the Upper Peninsula and 17 northern Michigan counties on May 22, Michigan is gradually moving to new phases Whitmer has outlined in her MI Safe Start plan. The plan by the Michigan Economic Recovery Council divides Michigan into eight regions. Michigan has spent most of May in phase 3, or the “flattening” phase in which the virus is no longer spreading at high rates and the health system capacity is “sufficient.” To move into phase 4 of “improving,” cases and deaths must “decline more sharply,” health system capacity strengthens and robust testing and protocols are in place. This transition is occurring, shown by Cascade Engineering’s health Whitmer’s May 21 announcescreening process includes a ment to reopen retail and automotive dealerships under cer- quick questionnaire. COURTESY PHOTO tain limitations. The board of the Grand Rapids Area Chamber of Commerce recently approved the group’s Smart Restart agenda, which includes a series of policy recommendations for local, state and federal policymakers to jumpstart economic activity. They include various tax deferments, liability protection and business interruption insurance. “We want to connect our policymakers with people in the business community to talk about how they’re preparing to open,” Johnston said.

Seeking clarity In recent weeks, Whitmer’s critics have ramped up claims that her phased reopening plan is too vague. Johnston said it remains unclear the phase in which individual industries may fall. For example, Whitmer effectively moved the up north restaurant and bar industry into phase 4. As more regions of the state advance in phases, Johnston said it should be clarified what size gatherings are allowed. Whitmer’s May 21 order authorizes small gatherings of up to 10 people, but Johnston said it’s not clear what’s in store for gatherings of 50-100 people, for example. He said indications from local health officials and hospitals suggest West Michigan may not be far behind in reopening. “As the opening goes, the business community should be very clear that when we talk about reopening, it’s not going to be the way it was before COVID,” Johnston said. Employers agree there were questions at first that are being ironed out. “The issue for us has been: How do you deal with this?” Buist said, adding that he anticipates precautions to remain in place into next year. “You get such conflicting information. As things develop, we have been getting more clarity.” As well, Buist thinks the coming months will bring more clarity to the actions taken since mid March. “When there’s a lack of information, it’s difficult,” Buist said. “You can make it political, but at some level, our politicians are all trying to do the right thing. I have a hard time second guessing their decisions. Not that I don’t, but the country has so many thought processes going on right now, it’s hard to balance and understand what the right decisions are.” MiBiz / MAY 26, 2020

SMALL BIZ

SBA turns focus to PPP loan forgiveness By MARK SANCHEZ | MiBiz

up to 25 percent of their PPP loan for business msanchez@mibiz.com expenses such as utilities, rent, debt incurred before Feb. 15, internet and cell phone service, fter approving more loans in six and transportation. weeks than during the prior nearly Those threshold requirements for spending 60 years combined, the U.S. Small PPP money could change, Scott said. Business Administration now The SBA awaits action in Congress that would looks to provide debt forgiveness to double the compliance period to use PPP loan borrowers. proceeds from eight to 16 weeks, Scott said. Some Under the SBA’s Paycheck Protection lenders “are a little wary, essentially, to do a loan Program, small businesses can earn forgiveness right now” under the PPP because they worry if they spend 75 percent of their loan amount on whether the borrower can fully comply and make payroll expenses within an eight-week period. the loan fully forgivable, Scott said. Borrowers with a PPP loan can now begin preThat change would “certainly renew interest paring to apply for forgiveness under initial guidin the PPP” after massive demand in the early ance the U.S. Department of Treasury issued May weeks, he said. 15. “We’re just trying to hone in our Questions remain forgiveness so that small business The present eight-week period writowners and lenders have what they ten into the federal CARES Act that need when it comes to complying created the PPP has been one of the with the forgiveness of this debt Sponsored by: “big questions on everyone’s minds,” that essentially the lenders have on SMALL BUSINESS as is the potential for Congress to their books,” said Rob Scott, Great ASSOCIATION OF MICHIGAN change the requirement for borrowLakes regional administrator for the ers to use 75 percent of the money for SBA. “The prospect of debt these payroll expenses, said Mike Tierney, borrowers have, we want to make CEO of the Community Bankers of Michigan. sure that it is truly forgiven and that it is com“Will they extend the eight-week payroll plied with so we don’t saddle small business ownperiod as many businesses are still forced to ers with more debt to hurt them down the road.” remain closed or operating at less than full The 11-page document provides instruccapacity and will they lower the 75 percent tions, definitions and forms to calculate full-time payroll requirement for the use of the funds?” equivalent employees, what percentage of the Tierney said in an email to MiBiz. “That would SBA-backed loan proceeds a borrower applied give business owners a lot more flexibility in how to payroll expenses, and what went to other they use the funds.” qualified business expenses. Borrowers may use

SMALL BIZ NEWS

The SBA wants to maximize how many PPP borrowers can qualify for partial or full loan forgiveness, Scott said. If a PPP borrower is unable to put 75 percent of the money toward payroll, it could still qualify for partial loan forgiveness, he said. Small businesses would then have two years to pay back the unforgiven amount to their lender at a 1 percent interest rate. They would have to start repayment within six months from the date of dispersal. “It’s not an all or nothing proposition. It would be scalable,” Scott said. “What we’re planning on is a vast majority of these loans will be forgiven with some of them being paid back.

Frontloading benefits One potential way for a business to help meet the 75 percent threshold to get full forgiveness is to frontload expenses such as contributions to employees’ 401(k) retirement plans, according to Chris Middleton, executive vice president and director of the retirement plan division at Greenleaf Trust in Kalamazoo. Department of the Treasury and SBA guidelines do not preclude frontloading the cost of benefits, Middleton said. He’s been receiving calls from clients who own small businesses, received a PPP loan and are now asking for advice on getting maximum loan forgiveness. Many intend to use employee retirement accounts to get PPP forgiveness. “We have a good percentage of them that are doing this or pursuing doing it,” Middleton said. “Since there was no limit put on how much can be put into employer contributions, many employers are saying, ‘I’m planning on putting the entire employer contribution for the full year into this bucket.’” However, Internal Revenue Service guidelines issued a month ago prevent employers from deducting those expenses on their federal tax return if they use PPP money for the contribution, Scott said. Since federal money paid those expenses, getting a tax deduction “would be double-dipping,” although Congress could change that as well, he said.

Taking action

SBAM is helping Michigan get back to work safely with Personal Protective Equipment produced by Michigan small businesses. sbam.org/PPE

MAY 26, 2020 / MiBiz

Congress created the PPP through the CARES Act and initially allocated $349 billion to the SBA for small business relief loans. The SBA went through the first funding round in just two weeks, leading Congress to appropriate another $310 billion. The PPP resumed April 27 and as of last week still had $100 billion available, Scott said. Since launching the PPP in April through nearly 5,500 banks, credit unions and other lenders nationwide, the SBA has approved and backed more than $513.2 billion in loans for more than 4.3 million small businesses as of May 16. In Michigan, nearly 112,000 small businesses received PPP loans totaling $15.7 billion. The loans approved nationwide under the PPP exceed all of the lending the SBA had done since its formation in 1953, Scott said. “We did more loans in six weeks than we’ve ever done, total, as an agency,” he said. The federal loans were meant to pay small businesses to keep employees on the payroll or call them back to work if they were laid off after many states issued stay-home orders. Those orders and the economic fallout from the COVID19 pandemic hit small businesses hard. In an April survey by the Small Business Association of Michigan, one in seven respondents said they did not expect their business to survive the crisis. Economists at the University of Michigan estimate that nearly 5 percent of employees in Michigan worked at businesses prior to the pandemic that are now expected to fail, according to a recent outlook presented to state legislators.

State outlook After a deep second quarter decline, University of Michigan economists predict the state’s economy will partly recover in the latter half of the year to post Real GDP growth of 1.7 percent for all of 2020, and 1 percent in 2021. “This is a very challenging time for Michigan’s economy and families. There’s a great deal of uncertainty about the economic outlook, and much of that uncertainty stems from the uncertain path of the COVID-19 pandemic,” University of Michigan economist Gabriel Ehrlich told state lawmakers earlier this month. However, the outlook assumes that the pandemic will not have a “major second wave” later in 2020 that delivers another blow to the state’s economy. “We are not forecasting a major second wave of the pandemic that would cause the same sort of economic disruption and shutdown that we’ve seen in the first wave,” Ehrlich said. In an updated outlook, Comerica Inc. economists project a 32.8-percent decline in state Real GDP for Michigan in the April-to-June period, led by the manufacturing sector that was largely shut down for weeks and is just now beginning to reopen. The outlook estimates state Real GDP began to dip in the first quarter with a 4.3-percent decrease. Comerica projects a rebound of 12.6 percent in the third quarter. Real GDP for Michigan would then dip 2 percent in the fourth quarter, before returning to growth in 2021.

U.S. outlook Nationally, Comerica Inc. projects a “W-shaped pattern” for U.S. economic performance. The Comerica outlook projects a 28.3-percent decline in Real GDP in the U.S. for the second quarter, followed by 12.1-percent growth in the third quarter and a modest 2.6-percent decline in the final three months of 2020 “as the pandemic reasserts itself and social mitigation policies are strengthened,” according to Comerica. The University of Michigan’s latest outlook for the U.S. calls for an overall 4-percent decline in Real GDP for all of 2020, with a 30-percent decline in the second quarter alone. The national economy would then see a “significant rebound in the third quarter as a lot of restrictions on businesses are relaxed,” U.S. Forecast Specialist Daniil Manaenkov said during the legislature’s May 15 revenue estimating conference. The U.S. economy should rebound with 3.3 percent Real GDP growth in 2021 and 2.1-percent growth in 2022, according to the university. As with the state forecast, University of Michigan economists wrote in their U.S. outlook that they were “optimistic that a dramatic second wave of new cases can be avoided, and that schools will reopen in person in the fall. We predict social distancing to continue over the next several quarters, stemming largely from private sector caution rather than government mandates.”

More SBA tools Given the down economy, the SBA now looks to push a traditional small business lending program known as 7(a) Express, which offers loans of up to $350,000. The CARES Act increased that amount to $1 million, Scott said. Congress may raise the federal guarantee for 7(a) from 50 percent to make it more attractive to lenders, he said. Following the 2008 financial crisis, Congress raised the federal guarantee on 7(a) loans to 90 percent. An SBA 7(a) loan could provide a source of capital for small businesses during the economic downturn brought on by the pandemic, Scott said. “This is going to be a long-term effort. It isn’t going to be these states opening up and the flip of a switch and everything goes back to pre-COVID. This is going to be months of recovery, if not years,” he said. “We’re going to be here for a long time and engaged in all communities.” Visit www.mibiz.com

SMALL BIZ: COPING WITH COVID-19

Continental Linen Services right-sizes business, adapts to new environment By JOE BOOMGAARD | MiBiz jboomgaard@mibiz.com KALAMAZOO — The 121-year-old Continental Linen Services Inc. helps customers keep their workplaces sanitary and clean. In the middle of a global health crisis, the Kalamazoo-based company’s services such as uniform rentals, towels, linens, gowns and safety apparel are highly in demand. The problem: A significant chunk of the company’s customers are not operating right now, having been forced to close their doors by statewide social distancing and stay-home measures. As a result, Continental Linen Services has had to scale down its business, which operates from six locations in the Lower Peninsula, to match the revenues that are coming in from the customers in health care and retail that have remained open, said owner and President Kurt Vander Meer. The company was coming off 2019 in which it made a $2.4 million investment into expanding its laundry processing facility in Kalamazoo to better accommodate the increased volume of business. “We got that done, got it behind us and we’re cruising right along. Then we got into March and kaboom,” Vander Meer said of the COVID-19 pandemic. “It’s really hit us quite substantially.” CLS furloughed some of its workforce and had to implement layoffs to adjust for the loss of volume. Vander Meer also said CLS applied for and received a U.S. Small Business Administration Paycheck Protection Program

loan, which “has been extremely helpful for us in helping to pay our workers.” “It’s a far cry from where I’d like to be, but it’s been very helpful, absolutely — very needed,” he said. “Cash is king — always is, no matter what the situation is. We’re managing very well short term, we’ve scaled the company very nicely. The blessing I have is I’ve got an amazing team around me that’s very creative, very resilient.” Over the last couple of months of operating in the pandemic, CLS has been particularly successful in working with customers for uniform rental services, according to Vander Meer. The selling point for customers is that they can control the safety and cleanliness of workers’ clothing, while also building a team mentality and a corporate image, he said. “Those uniform programs are such a big deal for the businesses now,” Vander Meer said. “It has been a good thing for our business. We’ve seen quite a lift in the customers that are open.” For the customers that have been closed, CLS focuses on outreach and communication on a weekly basis to see if they still have needs the company can serve. Vander Meer said that unfortunately, not all customers will make it through the current crisis, through no fault of their own. “That hurts. They had no control over this and they have to make a decision to shutter or go out of business. Losing those long-term business friends is probably the worst in all this,” he said. “And then you have all those people that are stranded without jobs. There’s not a lot of good there.” Vander Meer has witnessed positivity by way of the entrepreneurial spirit Michigan

Midwest Realty stays nimble to react to coming commercial real estate evolution By JOE BOOMGAARD | MiBiz jboomgaard@mibiz.com

Kurt Vander Meer, President of Continental Linen Services Inc. COURTESY PHOTO businesses have demonstrated during the difficult times. He cites as one example of their adaptability the rapid shift to remote work in the last few weeks. “Sometimes you kind of march in place and it’s what you do; you create your ritual,” Vander Meer said. “This disturbed it, and challenged the status quo of the ritual. “For the first few days, we would talk and meet and collaborate as a team, and we would hear, ‘We’ve always done it this way. We can’t change.’ Well, hold on. The world just changed, it flipped, so the rule book you had doesn’t exist. You’re going to create new rules, new processes, and some of that’s been really good. Some of it’s really hard. We’ve just got to think differently. Customers are going to need something differently.”

Seven Generations A+E transitions to remote work to deliver ongoing federal projects By JOE BOOMGAARD | MiBiz jboomgaard@mibiz.com KALAMAZOO — Even as construction and development projects came to a halt for several weeks as states and the nation reacted to the spread of COVID-19, Seven Generations Architecture & Engineering LLC has remained busy. The 30-person firm works on a range of federal government projects, which provided a needed cushion to keep all the company’s employees working, albeit from their homes and not Seven Generations’ new headquarters in downtown Kalamazoo. While the company did not think about planning for a pandemic as part of its business strategy, it did bake into its model the flexibility to allow employees to work remotely when necessary, said President Jeremy Berg. Now, Berg is unsure if always working from an office will be entirely necessary in the future. He envisions a future in which people schedule times for desks and use the office primarily for team meetings. “I’m starting to think of the office as more of the collaboration zone and figuring out does everybody need to be at the office. I don’t think so, to be honest with you, after this,” Berg said. “If you’ve got an important meeting and you want Visit www.mibiz.com

to get the team together in person and work through some stuff, then absolutely you do that, but then maybe two or three of the days out of the week, people are working remotely. It’s all on the table.” Seven Generations, which is wholly owned by Mno-Bmadsen, the independent non-gaming investment arm of the Pokagon Band of Potawatomi Indians, already has started to modify its offices to add barriers and rethink common gathering areas to keep people safe and allow for more distancing. The firm is taking those internal lessons and applying them to client work, helping others think through the implications of office environments in a postpandemic timeframe. “This could be a watershed moment with many implications, like 9/11 was to airport and transportation security,” Berg said. “I can’t say I have the answers, but I certainly believe there’s going to be changes in the working environment, looking at do we need to be in the office as much, can we work remotely. “I think there’s benefits of getting together and working side by side, but do we have to do that all the time? … You look at open office environments. Do those make as much sense anymore? I think we have to really look critically at our spaces and try to figure out what

makes the most sense.” Steve VandenBussche, vice president of practice and senior health care architect at Seven Generations, said the current situation could lead more companies to find ways to incorporate outdoor spaces into their strategies for social distancing. “I think there’s going to be more programs and institutions looking at outdoor program space as more of an asset, whereas maybe before, that sort of green space or trail system or whatever around the building wasn’t as important of an item,” VandenBussche said. While the firm’s federal work, including a $30 million office building at the Lackland Air Force Base in San Antonio, Texas, continues to move forward, some of its local projects in Southwest Michigan have hit pause. Likewise, some of its tribal work also has stalled as parts of Indian Country have been devastated by the COVID-19 pandemic, while other projects continue making progress, including a housing development for the Bay Mills Indian Community near Sault Ste. Marie. Berg guesses it will be a “mixed bag” as to whether work on the boards for some commercial projects will move forward or be scrapped. “If I’m a developer, if I’m building a hotel, it’d be hard for me to

Jeremy Berg, President of Seven Generations A+E. COURTESY PHOTO say let’s do it right now. There’s just so much uncertainty,” he said, noting that he expects “a slow restart” to the national economy. Seven Generations also has benefited from being able to have executive-level discussions with the other platform companies of Mno-Bmadsen, as well as from sharing back-office functions such as human resources. “That is one of our advantages: We’re backed by another organization and have sister companies and have resources and the ability to just have candid conversations about what’s happening and how best to deal with it,” Berg said. “We feel fortunate that we’re in a position where we’re all working and we foresee us all working for the long haul. I know there’s other companies in town that do work similar to us that don’t feel as optimistic.”

PORTAGE — The COVID-19 pandemic has accelerated a series of changes that could fundamentally shift the commercial real estate market in the months ahead. That’s according to Rick DeKam, principal of Midwest Realty Group LLC, a Portage-based commercial real estate brokerage, development and property management firm. In particular, DeKam cites the influence of technology on how businesses operate and what their space needs will be in the future, as well as the effects it has had on the retail sector. “Our society is constantly evolving with technology,” he said. “What (the pandemic and shutdown) did was it helped all of us realize that, with the technology that we already have, we were able to implement it more, to lean on it greater and continue to stay open even though we were all at home. It’s helped all of us realize a number of things that we really weren’t embracing prior to this.” Companies that never had a remote Rick DeKam, Principal of workforce transMidwest Realty Group LLC. formed their business model overCOURTESY PHOTO night and “are in many cases finding to some degree that they’re more effective working remotely,” DeKam said. “I’m concerned about that because I think it’s going to fundamentally change office space and office requirements,” he said. As a small company, Midwest Realty has been managing through the pandemic without any major issues, DeKam said. Before the state-mandated shutdown, the company was working through a number of transactions and didn’t miss a beat on closings with the new tools allowing for the broader use of electronic signatures and online notarization. But in the wake of the closures, he’s seen most new brokerage activity grind to a halt. “Most people are trying to figure out how to adjust to the new normal versus expanding,” DeKam said. “There were people before the shutdown that we were talking to about expansions and additional locations that are at this point talking to me about closing. It’s been a complete reversal.” As well, the firm has experienced some tenants having difficulty paying their rent, but more concerning for DeKam are the long-term tenants that are closing down or unexpectedly not renewing their leases. He understands their reluctance to sign up for long-term leases “if you don’t know where your future is,” but from a landlord’s perspective, “the last thing you want” is to have a good tenant terminate its lease. DeKam insists the sky is not falling for the commercial real estate market, but companies like his will have to be quick and make adjustments to stay on top of all the change that is happening. “It’d be a mistake to make absolute decisions right now because this is so new and nobody really knows where any of this is going,” he said, noting he’s “not making drastic changes” because of the evolving situation. “To not be talking about it and trying to figure out where these new parameters are going to fall is a mistake. At this point, we’re just doing a lot of talking and trying to just figure out where this is going,” he said. “You’ve just got to be a little bit nimble and be able to identify what’s happening in your industry and be able to move cautiously down that new path. We don’t know what that path is yet, but we’re exploring it aggressively.” MiBiz / MAY 26, 2020

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FINANCE reporter’s NOTEBOOK Mark Sanchez writes about finance, health biz and life sciences. 616-608-6170 • msanchez@mibiz.com

Banker beware Banking executive Craig Dahl said it perfectly. In a recent conference call, the president and CEO of Detroit-based TCF Financial Corp. — the parent company of what remains known in Michigan as Chemical Bank — voiced a simple ethic that all businesses, no matter their industry or their size, must keep in mind in the COVID-19 pandemic. “Times like these are when the greatest companies show their colors,” Dahl said during the conference call in which TCF Financial executives discussed their quarterly financial results. His sentiment is particularly true in banking these days, when companies large and small have any number of options as both banks and credit unions eagerly compete for their business. In fact, many small business owners recently expressed unhappiness with their bank’s handling of the U.S. Small Business Administration’s Paycheck Protection Program. Some are not the least bit shy in voicing their anger and frustration on social media. One recent example is Rudy Malmquist, the owner of Mindutopia Inc., a Grand Rapids-based web development company. He recently posted on Twitter that he was “ignored for three weeks” by his large bank, where he had been a client for many years. “I switched to a local bank & had approval for my PPP loan in hours,” Malmquist tweeted. “I’ll be moving all my business & personal accounts very soon!” In a recent convers ation, Malmquist told me that one of his biggest frustrations with his nowformer bank was a lack of information or response, and not knowing the status of his PPP loan application. In three weeks of waiting, he heard nothing other than receiving automated emails when the SBA ran out of funding for the first round of the PPP on April 16. He also was able to go online to check the status of his application. When he checked one last time after the PPP resumed for the second round and found he was still awaiting a decision, Malmquist decided to go elsewhere. After he went to ChoiceOne Bank and quickly had his PPP application submitted and approved, he moved his business and personal accounts. Malmquist believes larger customers at his former bank “got moved to the front of the line” ahead of him. “I felt I had a banker. I was wrong,” Malmquist said. “I’m a small business and I think in the grand scheme of things I don’t matter. I’m done with them. This is a pivotal time. I needed a bank, and they failed me.” Malmquist is not alone in his frustration. Our inboxes here at MiBiz contain other tales of small

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business owners unhappy with or feeling slighted by their bank over the PPP application process. Their stories show the risks banks face in mishandling relationships with small business owners, whose anxiety remains high over what the future holds because of the battering the pandemic and stay-home orders have wrought on the economy. Customers who feel put off — whether justly or unjustly, whether from perception or reality — may make the quick decision to shop around. In the competitive banking landscape of West Michigan, they will find plenty of willing takers for their business. That point was driven home in Macatawa Bank Corp.’s annual shareholders meeting a few weeks ago. Chairman Richard Postma told shareholders that Macatawa Bank has picked up small business owners left frustrated by how their former banks handled their PPP loan applications. Macatawa Bank not only accepted and processed PPP loan applications for those small businesses, but now counts them as clients, Postma said. “In the PPP program, a number of businesses were having somewhat of a difficult time getting their loans fulfilled at their existing bank. We have taken a number of those businesses on and have also received their business transferred from another institution to us,” he said. As banks reported first quarter earnings during April, they offered information on the massive volume and value of PPP loan applications they processed and submitted to the SBA on behalf of clients. Surely, there were fumbles along the way, given the enormity of the undertaking and unease from persistent changes in guidance from the federal government. Banks also reported on the number of payment deferrals and loan modifications they approved for consumer and commercial borrowers, which offers a sign of their willingness to help customers through the present crisis. That willingness to pivot is surely welcome by the businesses that have been getting crushed economically by the pandemic. Yet even with best intentions, deeds count far more than words; executing and delivering is what matters most to any customer. While most businesses are forgiving of honest errors, right now is an exceedingly bad time to disappoint a customer and have them feeling that you don’t care. Perhaps the lesson from Dahl, Postma and Malmquist is to consider a new twist on the old phrase, “buyer beware.” These days, it’s “banker beware” if a customer feels let down at a time when they need their banker the most. Said another way: Hell hath no fury like a small business owner who feels scorned.

Grand River Bank, which is building its second branch office at Crahen Drive and Fulton Street east of Grand Rapids, hopes to raise $7.5 million to bolster its resources amid the COVID-19 pandemic. COURTESY RENDERING

Parent company of Grand River Bank plans $7.5M raise to ‘buttress’ existing resources By MARK SANCHEZ | MiBiz msanchez@mibiz.com GRANDVILLE — The parent company for Grand River Bank wants to raise $7.5 million to provide a cushion for the economic downturn brought on by the COVID-19 pandemic. Grand River Commerce Inc. aims to raise the capital through a debt offering, according to a recent filing with federal securities regulators. The offering “is in many ways based on the uncertain circumstances that we’re all facing right now” from the pandemic, Grand River Commerce President and CEO Robert Bilotti said. “We’re facing an unprecedented circumstance,” Bilotti told MiBiz. “We feel that until we have a better understanding of the severity of the economic impact, we want to be certain that we have adequate resources to manage through this crisis and serve the interests of our customers.” Grand River Commerce planned to approach existing shareholders and clients first to participate in the debt offering. The additional capital also Bilotti will go to support clients that continue to grow even in the economic downturn, Bilotti said. “There’s continued long (term) growth out there and we want to be in a position to meet it,” he said. “There is continuing loan demand and we want to be able to meet that.” The holding company pursues the offering as the region continues to grapple with the COV1D-19 pandemic Gill and its economic fallout. However, it comes after the company put up strong growth in 2019. Grand River Commerce last year grew total assets by 21.5 percent over the previous year to $321.2 million. Total deposits grew nearly 24 percent in 2019 to end the year at $270.9 million, and total loans increased 21.4 percent to $289.8 million, according to an annual financial report posted on the bank’s website. Grand River Commerce has more than doubled assets, loans and deposits since 2015. The corporation recorded $1.7 million in net income for 2019, up from nearly $1.4 million the year prior. “It was a great year and a great run,” Grand River Bank CEO Pat Gill said of the 2019 results. Given the pandemic and its effect on the economy, growth rates for 2020 are hard to predict, Gill said. “Some of that is really going to be determined by how quickly the economy recovers, how quickly businesses reopen, what we find as we reopen and how the virus behaves,” he said. “There’s a lot of things about which there’s a great deal of uncertainty.”

Grand River Commerce operates a single Grand River Bank office in Grandville. The corporation last year opened a temporary mortgage and commercial lending office on Cascade Road and is building a new branch at Crahen Drive and Fulton Avenue that should open in the fourth quarter, giving Grand River Bank a physical presence on the eastern side of Kent County. Gill emphasized the bank is well-capitalized with “very strong performance” and has “pristine” asset quality. The debt offering is “a prudent thing to do to buttress the capital levels a bit just to create a bit of additional buffer against the uncertainty,” and accommodate growth, Gill said. “There may be some opportunities for growth or expansion or additional business lines that will ultimately become apparent as we work our way through this situation, and we want to make certain that we’re prepared to take advantage of opportunities, as well as have a buffer against the downside,” he said. A number of banks in the upper Great Lakes region lately have been raising additional capital by issuing subordinated debt, Bilotti said, which is the option Grand River Commerce directors chose. The option was preferable versus a securities offering that would dilute existing shares, he said. An offering of additional securities also would have occurred as the economy reels from the COVID-19 pandemic. “We considered the best way to go about this, and right now, the capital markets view bank stocks with uncertainty, is the best way to put it,” Bilotti said. “The idea of raising capital through the sale of bank stocks is something we recognized as being an uphill battle at this point, and we made the commitment to not further dilute our shareholders’ interests with an equity raise, so sub-debt made sense.”

“There may be some opportunities for growth or expansion or additional business lines that will ultimately become apparent as we work our way through this situation, and we want to make certain that we’re prepared to take advantage of opportunities, as well as have a buffer against the downside.” — PAT GILL CEO of Grand River Bank

MiBiz / MAY 26, 2020

FINANCE

TCF Financial execs discuss pandemic response, merger integration By MARK SANCHEZ | MiBiz

How have the lessons from the last financial crisis affected decisions in this crisis?

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CF Financial Corp. approved more than 16,000 U.S. Small Business Administration Paycheck Protection Program loans for $2 billion, all while adapting to the COVID-19 pandemic as most non-branch employees transitioned to working from home. During that time, the Detroit-based TCF Financial maintained progress on the integration of TCF Bank and Chemical Bank following the $3.6 billion merger with the former Chemical Financial Corp. on Aug. 1, 2019. After the integration, Chemical Bank offices will take on the TCF name. MiBiz spoke recently with TCF President and CEO Craig Dahl and Executive Chairman Gary Torgow about the PPP, managing through the pandemic, and the pending integration.

The SBA put almost $350 billion into the field in a week for the PPP’s first round and worked with a lot of banks. What was the biggest challenge in getting it up and operating so quickly? TORGOW: The SBA and Treasury getting the system to work. The SBA never had this kind of volume. They were a much smaller producer, and the challenge for us was being able to get into their system, getting the guidance from them about what to do and what kind of application (to use). They went through two or three application processes before we got the right one from them. I think the biggest challenge was just getting into the SBA system and making sure that we were compliant with the documents. We had quite a number of iterations until they got to the final application. Once we got into the system, the SBA worked well with us. … I think it worked pretty seamlessly.

What surprised you about the PPP? DAHL: This was intended to fund roughly two and a half months of payroll for small businesses. I support how fast the money went out because it had to. If these business owners weren’t certain about getting the money, there’s no way they could keep employees on the payroll. We had over 220,000 employees impacted

by the loans that we made. Take that across the whole system, and that’s a big deal. There was nothing ever done this fast, but this was something that required it to be fast.

What has the huge demand for PPP loans told you? TORGOW: The COVID-19 pandemic struck the country economically in a way that without that really important government infusion, without bank cooperation, without everybody coming together, the economic damage would be worse than it is. What it told us is that the government smartly reacted quickly. They were also in very unchartered territory. We haven’t seen anything like this in a stimulus program. Continuing stimulus opportunities are going to be very critical to keeping the economy, the businesses and the people afloat until this pandemic is over and we can see economic recovery.

What have you learned from the last two months? DAHL: I don’t think everyone is aware of how little cash on hand these small businesses operate with. They’re spending tomorrow’s revenue today in some of these. So, that’s the big takeaway that people need to understand. They’re not going to operate with a cash cushion that’s going to

Dahl

Torgow

allow them to withstand (the effects of a major revenue disruption). The other thing I want to point out (is that it’s) different than the last recession where businesses could be criticized for making moves or whatever. Even at TCF, the first two months (of 2020), we had normal, good months. We were right on our plan. All of a sudden all of those plans went right out the window. These companies were in the same boat. They were not making mistakes leading up to this cash shortage. Their revenue went to zero overnight.

If Congress decides to do another PPP round or another form of stimulus, what advice do you have? TORGOW: What we want Congress to concentrate on is what we believe is the foundation of communities, which is the small businesses, the small mom-and-pop shops, the restaurants, the little apartment building with four or five residences. We want to make sure the underpinnings of the community are supported through this, and we don’t want to see businesses close. We want to see businesses strengthened. I think that if government is going to continue to aim, they should aim at those who suffer the most through the economic decline that we’re in. If I were talking to Congress, I would be talking about the urban centers, the inner cities, the places that were hit the hardest with the health crisis and the economic crisis. Those are people that need help the most.

TORGOW: T he le s s on s t h at we learned from the systemic debacle of ’08, ’09 and ’10 was that we, at least in our industry, recognized that banks do have to stay strong and healthy and very supportive as a community, and we have to work and act fast. We had to be concerned about the health of our employees. We had to make sure everybody was safe, and nobody got sick, and kept 85 percent of our branches open so that people could get to their accounts and could feel that the bank is responsive to them. Those were very important lessons. There was a very slow response in ’08 and ’09 and in many respects, it was the banks that were suffering the most during those times, which turned out to be the suffering of customers and communities.

How has the pandemic altered how you run the business? TORGOW: A couple of things will occur. One of those is really getting a sense of who can work from home, as opposed to working in the office, and where their comfort levels are. The second is we’ve recognized for the next period of time, customers are going to need continued support. We’re going to need to continue to do the business that we did before, which is approve loans so people can have their ability to grow the businesses that they want, and we want to make sure we’re there for them. It will make us look very deeply at the employee situation and the customer situation to make sure that we are responding very well.

What’s the status of the integration of Chemical Bank and TCF Bank after last year’s corporate merger? DAHL: Despite all of the obstacles that have just propped up in the last

60 days, we are really proud of the response our team has made. Over 90 percent of our non-branch staff is working from home now and it’s gone extremely well. We remain on track for our integration, which is in the third quarter. We’re excited to bring forth the one system and the one solution to all of our customers. Everything’s still on track.

How do you see the pandemic permanently changing your industry? DAHL: Some of t he t hings have already happened. What’s the role of the branch going to be? How well do your digital tools work? And how does your customer base accept and adopt them? There were a lot of people that were critical of our branch system having all of these drive-ups, and yet that was the key for us to be able to service our customer base by having that drive-up function during a time when we kept over 80 percent of our branches open. We understand that change management is going to be very important on the other side of this as well.

Does the current situation accelerate the use of digital banking options? TORGOW: Every part of the digital experience is going to be advanced here. You see the way we’re conducting meetings, you see the way we’re communicating with each other. I think there’s going to be less travel. I think people are going to be utilizing the tools they have been given during the pandemic, and customers are going to be more adept. We’re going to be in a good place with this conversion in advancing our technological opportunities for customers, and more and more the customers are going to use it and appreciate it and feel more comfortable. They are going to drive themselves into those areas because of what’s happened.

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REAL ESTATE & DEVELOPMENT

Brokers make adjustments, brace for market changes in wake of COVID-19 By JAYSON BUSSA | MiBiz jbussa@mibiz.com

fter a day filled with showing commercial space to a potential client, Bryan Bench felt like his professional life had briefly returned to what it was before the disruption that came with the global COVID-19 pandemic. “I was surprisingly pretty doggone busy (today),” said Bench, commercial manager and partner at Muskegon-based Core Realty Partners LLC. “It almost felt like a normal day.” While Bench and his colleagues returned to the job full force on May 7 under an updated executive order from Gov. Gretchen Whitmer that applied to the construction and real estate industries, they still face plenty of uncertainties as the state looks to slowly jumpstart the economy. The questions commercial brokers are considering include what will happen to inventory, will pent-up demand return and what types of businesses will come calling first.

Bench

Common sense approach

Enhanced safety measures and best practices are a major emphasis for any business that has returned as the statewide COVID-19 pandemic appears to be on a downswing currently. While the commercial real estate industry certainly has its share of cutting-edge Postma tools available, including the ability to provide as much as a 360-degree virtual tour of a property without a potential client ever having to venture out in public, the process of showing space remains relatively unchanged save for a few common sense practices. “We might have a little bit Abraham more Zoom and telephone communication — maybe (a client won’t) go out looking at a property until they really have to,” said Tom Postma, principal at the Colliers International office in Holland. “But it’s different from residential, where you’re going into someone’s house. A lot of time, (commercial space) is empty space so you don’t worry about coming into contact with people. “We have had some showings where everyone has a face mask and everyone stays six feet apart. That’s easy to do in a large industrial space.” While virtual tours are an often used solution in residential real estate, when it comes to commercial real estate, “People still like the touch and feel of real estate, to walk through it and see it,” Postma said. While Core Realty’s Bench admitted that the safety measures do feel a bit more relaxed when compared to an industry like construction, or even the residential side of real estate, that doesn’t mean that commercial brokers are throwing caution to the wind when it comes to safety. “There have been times where I’m showing a space and maybe I’ll handle opening all the doors and turning on the lights — they don’t have to do any of that,” said Bench. “It’s common sense things like that. It’s important to use Visit www.mibiz.com

that common sense no matter what type of business you’re in.”

Taking the pulse When it comes to the three primary sectors of commercial real estate — industrial, office and retail — the crystal ball respectively turns from fairly clear to a hazy mess. Commercial brokers appear to be quite confident that the two-month shutdown of virtually the entire economy won’t be enough to rattle the industrial sector of the West Michigan economy. “Industrial still (has a) very limited market,” said Postma, who specializes in industrial real estate for Colliers. “I don’t see this really affecting our industrial market at all. I’m seeing people getting back to work and opening up and starting to inquire about space. I feel good about that.” Postma also labeled the sector as a driving force for all other sectors in the local economy, making it positive news that many industrial businesses are able to get back on the job — and safely. Part of that quick return to work can be attributed to the nature of the spaces and how today’s work is completed. “A lot of factories are less employees and more machinery,” Postma said. “The 10-foot and sixfoot distances are not really an issue in manufacturing spaces. It might be different if you get into a meat packing plant where people are side by side, but you see a lot more automation and less employees per square foot than you’re used to.” Matt Abraham, senior real estate advisor for Grand Rapids-based First Companies, was just as bullish on the industrial sector. “It’s a strong sector in the West Michigan economy — lower end of supply and high level of demand,” he said. “As we come out of this, my expectations will be that it won’t be 100 percent like it was pre-COVID, but it will certainly come back at a much quicker clip than other sectors.” The outlook in regards to demand for office space gets a little murkier while the retail market — including hospitality and entertainment, which were arguably the hardest hit of them all — is a complete toss-up.

Co-working spaces such as Blue35 in Grand Rapids could become increasingly popular office options for companies as more employees transition to working from home. COURTESY PHOTO

“There are countering arguments (in regard to demand for office space) where one argument is that more space will be needed and the other argument is that less will be needed because more people can work from home or remotely,” Abraham said, noting social distancing measures could lead to greater space needs. “My sense is that both of those polars will exist in the short term, but in the long term, there won’t be much change.”

‘Very different’ Count Rick DeKam, principal at Portage-based Midwest Realty Group LLC, in the camp expecting office spaces will shrink coming out of the pandemic. “I don’t think they’re going to completely do away with their office needs because I still think you need a touchdown place, or a place to have meetings, or a print center,” DeKam said. “But I think people are going to reevaluate how they are utilizing their office space. It might take a few years, but as a result, the footprints are going to be smaller and there’s going to be more space sharing like with touchdown centers … and co-working solutions.” Combine that with worries that the growing federal debt tied to stimulus packages will have a deflationary effect on the economy, and DeKam thinks the economics of office properties could be in for an upheaval if property values dip and owners “overnight” get upside down on their holdings. “That’s right at the tip of our nose right now,” he said. “What we’re moving into now is going to be very different.”

“As we come out of this, my expectations will be that (industrial) won’t be 100 percent like it was preCOVID, but it will certainly come back at a much quicker clip than other sectors.” — MATT ABRAHAM Senior Real Estate Advisor at First Companies

As well, DeKam thinks the reliance on e-commerce retailers like Amazon.com during the pandemic “added gas to the fire” of a “retail evolution” that’s been taking shape in the past few years. For his part, Postma had more questions than answers for how the retail market would emerge from this stalled economy. “Retail is probably the biggest question mark,” he said. “The smaller businesses that have been shut down, how are they going to sustain this? Are we going to see a little bit of space open up because people go out of business?” MiBiz Editor Joe Boomgaard contributed to this report.

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Do you have the competitive edge to land your next job?

o you have the skills, experience, degree or certification that will help you stand out when it comes to the competition for your next job? With more individuals competing for open positions, it is more important than ever that your resume shows a competitive edge.

Get certified There are a number of professional development courses and certifications available that will enhance not only your skillset but also how your resume stands out against the competition. Have you considered a certification for leadership? Or certifications specific to your field? Whether you are in marketing, human resources, project management or accounting — there are courses you can take to certify your skillset and help you stand out from the competition.

Complete or earn a degree Research shows that when you add a degree — whether you finish a degree you’ve started or add a graduate degree to your resume — you increase your job prospects. According to a study by the Center on Education and the Workforce, college graduates see 57% more job opportunities than nongraduates, and an estimated two-thirds of all jobs in the next year will require postsecondary education. There are a number of opportunities to help you navigate the costs of earning a degree as well. From employersponsored scholarships to those offered by universities, there are options available to help make your degree more affordable. In fact, Davenport University is offering several options for scholarships for students interested in getting or completing

a degree. It has partnered with employers to offer its Corporate Education Scholarship to their employees. Employer partners include DTE, Gordon Foods and Metro Health. Davenport is also offering individuals laidoff or furloughed because of COVID-19, an $8,000 scholarship per year for four years. Anyone interested in these opportunities can visit davenport.edu to learn more.

Level-up your interview skills How long has it been since you have been through an interview, brushed up your resume or thought about updating your LinkedIn profile? Now is the time to brush up your skills. In order to land your next job or a better job, you need to be able to walk in with confidence to show how capable you are in taking on a new role. And confidence comes with a little homework.

There are free resources to help you brush up your skills including mock-interview websites, online tips and tricks covering important resume updates and best practices for your LinkedIn profile. Remember, LinkedIn is the modern, digital representation of your resume — so it pays off to make sure it’s on-point. Davenport University is also offering a free, three-credit course for laid-off or furloughed individuals who are looking to brush up on these skills. Anyone interested in this course can apply today by visiting davenport.edu/CareerBuilder. With more and more individuals in the market for a new job, it pays to make sure you have a competitive edge. Take a proactive step now to ensure you’re ready to land the job of your dreams tomorrow.

You have a dream. Whether your dream is to finish what you started, earn a better salary or show your kids what a quality education can do, Davenport University can help you get there. davenport.edu/achieve

MAY 26, 2020 / MiBiz

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FOCUS: EDUCATION & TALENT DEVELOPMENT

Internships go virtual in era of social distancing By MARK SANCHEZ | MiBiz msanchez@mibiz.com n the wake of the coronavirus outbreak, many companies delayed the start of new internships by weeks, while a few outright canceled their programs. Then there’s Open System Technologies Inc., which this summer will host 15 interns from afar. Rather than canceling or delaying its 2020 summer intern program because of the COVID-19 pandemic, the Grand Rapids-based software developer is among a number of employers that opted to go virtual instead. In the new era of social distancing and living with COVID-19, OST still needs to cultivate young talent, and summer internships for college students are a key element to the company’s recruiting strategy. In 2019, OST hired seven of its eight summer interns. Not doing the program this summer was never really a question. During the COVID-19 pandemic, maintaining that talent pipeline meant transitioning to a remote internship program at OST, which has offices in Grand Rapids and Minneapolis, Minn. “Our internship program is ultimately our number-one talent development pipeline,” said Hanna Staal,

Staal

Gray

senior talent acquisition consultant with OST. “It’s pretty crucial to adding to our teams. When we talk about bringing in entry-level talent, this is our preferred way.” OST puts summer interns to work in design, marketing, applications development and support, communications, and data analytics, Staal said. Among the considerations for OST’s move to virtual internships for 2020 were whether the work it planned to have interns do can occur remotely, whether the company can properly support interns remotely, and “how do we assure that a remote internship program has enough connection there,” she said. “Do they feel connected and are they engaged, are they supported and how well their total experience pans out,” Staal said of the considerations. The company is among the numerous firms that host college interns during the summer as an outreach and recruitment tool. Because of the stay-home orders and travel restrictions that began in March in many states, employers had to make quick decisions on what to do this year, months after they had selected and made arrangements for their 2020 interns. Visit www.mibiz.com

Hello West Michigan, a coalition that promotes the region as a talent destination, has been encouraging member employers to adjust and provide remote internships this year, said Executive Director Rachel Gray. While working remotely may not work as well as an in-person program, it is doable and can send a message to that future talent pool, Gray said. Interns will understand that an employer needed to adjust to the circumstances of the pandemic and will respect a company for making an effort to try something new, she said. “We’re encouraging companies to really pivot, take a chance and just try it. Even if the experience isn’t perfect, your interns will really appreciate the opportunity to work,” she said. “It does really show what the company is about, which is creativity and perseverance and saying, ‘Let’s work with what we’ve got.’ “From an employment branding standpoint, that’s a huge win for a company. It’s not just telling an intern and potential employee, ‘Hey, we’re creative and we’re innovative,’ but it’s actually showing and demonstrating it to them.” Hello West Michigan has adjusted as well and plans to make its June 18 annual networking event virtual with workshops on topics that include working remotely, Gray said.

Belt

Johnson

‘Investment into talent’ In West Michigan, SpartanNash Co. (Nasdaq: SPTN) was one the first local employers to transition to remote internships for this summer, Gray said. The Byron Center-based grocery wholesaler and retailer plans to host 20 interns remotely this summer through locations in Grand Rapids, Minneapolis and Norfolk, Va., said Jamie Belt, SpartanNash’s talent acquisition consultant. Interns in accounting, supply chain, information technology and marketing will work remotely on business projects, job shadow an assigned mentor, and participate in virtual professional development events such as executive speakers and professional panels, Belt said. As it is for many corporations, an intern program is part of a talent recruitment strategy at SpartanNash, she said. “The goal of our internship program is to create a pipeline for earlyin-career talent, and also provide an opportunity for college students to get hands-on experience to complement what they are learning about in

their classrooms,” Belt said. “This goal remains the same, whether an internship is in-person or virtual. We are confident we can provide meaningful work experience to these students by committing to a remote program, and not lose our chance to connect with these talented individuals at the same time. “The program is an investment into talent that we would like to join our team in the future. Without it, we would not be able to connect with as many bright, early-in-career individuals that come into our organization ready to drive innovation.”

Honoring commitments Key to a remote internship program is ensuring that interns still have meaningful work, mentorship, and networking opportunities, according to executives contacted for this report. Increased preparation, communication and management remains pivotal. To a number of college students, earning credit from a summer internship is one of the final steps toward earning a degree and graduating. As well, the students also may have been counting on the income that goes with the position, Gray said. In encouraging employers to switch to remote internships rather than outright cancel their programs, Hello West Michigan wants Hebreard to maintain the ability for students to still get what they need, she said. “It would really stink if you were a senior and this is the last thing you had to do and you’re going to walk and graduate and have your diploma, to then be told, ‘There’s no internship.’ What a terrible situation that would be,” Gray said. “It’s a really tough spot to be in.” That was among the reasoning for OST’s decision to proceed with its 2020 virtual internship program, Staal said. OST chose interns for this summer back in October and November of 2019. Staal felt a responsibility to proceed with a program this summer, even if it took on a different format. “They selected us early on and they could have chosen somewhere else. I just couldn’t in my own conscience know that we canceled an internship program that they could be receiving credit for or they needed to be paid,” Staal said. “We’re going to make this work. We’re going to make this happen for them, even if it’s not ideal and even if it’s a little bit clunky.”

Finding alternatives For students needing credits from an internship to graduate this year,

colleges have been working to provide them alternatives. Opt ions at Calvin University depend “on what the major is, but each department is working with students on how to do alternative things or if there’s different approaches to accommodate for COVID-19,” said TaRita Johnson, director of t he school’s Ca reer Center. “We’re not going to penalize students for not getting the experience. We’ll do alternatives to that,” Johnson said. For college seniors who require an internship or clinical experience to graduate, such as for nursing majors, what they do this summer to get their final credits depends on the requirements of the accrediting body, Johnson said. Nursing, education and social work accrediting bodies “have found alternative ways (for students) to complete hours,” Johnson said. Education students, for example, can create an online teaching plan, she said. Calvin also has helped students search for virtual internships and provided additional career coaching, she said. “There’s no magic pill, but what we can do is walk alongside these students in the process,” Johnson said. “If an internship is canceled, we can give them tools and equip them in the virtual environment and say, ‘We’re going to coach you through this and help you make connections. We’re going to tell you what you need to do and help you find the companies.’” Many of the employers in the region that bring aboard Calvin students as interns have indicated they planned to start later than the traditional early May date and condense the program, Johnson said. Others have committed to virtual internships, some have canceled, and Calvin has been contacted by employers that say they are still searching for summer interns, she said.

‘Think strategically’ At Aquinas College, “we are pivoting and we are pivoting quickly” to support students who lost their 2020 internship or had it curtailed, said Dana Hebreard, director of career services. “The message is if the internship was canceled, not to lose hope. There are still other ways students can demonstrate career readiness and prepare to enter the workforce,” Hebreard said.

About one-quarter of Aquinas College students who had a paid internship during the spring semester continued working remotely without interruption following the state’s stay-at-home order. About one in five unpaid interns at a nonprofit organization were able to work from home on special projects “that were created so they could continue their experience,” Hebreard said. About 40 percent of the unpaid interns had their internships suspended and transitioned to a special project to earn credit, she said.

“We’re going to make this work. We’re going to make this happen for them, even if it’s not ideal and even if it’s a little bit clunky.” — HANNA STAAL Senior Talent Acquisition Consultant at Open System Technologies Inc.

A small number of Aquinas students who were doing an internship for credit that abruptly ended when the COVID-19 pandemic spread into Michigan were moved into a project on critical thinking with the Forest Hills Business Association, Hebreard said. The college also created an online career course “to fill in the gap” for students whose internships got shortened and would not provide the credit hours they needed, she said. Given the scope of the pandemic and its effect on everyday life, students who graduate this year and head to the job market should expect to get questions in a job interview about how they adjusted, Hebreard said. “Think strategically. How did you use your time effectively? Anticipate maybe future interviewers asking the question: ‘How did you spend your time in the COVID-19 pandemic,’” she said. “Your responses have a strong indicator of your character and how you motivate yourself during challenging circumstances and how you used your gifts in new and exciting ways.” MiBiz / MAY 26, 2020

FOCUS: EDUCATION & TALENT DEVELOPMENT

Higher ed leaders plan for fall, respond to budget setbacks By ANDY BALASKOVITZ | MiBiz abalaskovitz@mibiz.com

eaders at public universities, community colleges and private schools across Michigan are getting a clearer picture of their budget shortfalls resulting from COVID-19, but uncertainty still clouds enrollment prospects and future in-person learning. The pandemic — and resulting stoppage of oncampus living, learning and public events — has resulted in hundreds of millions of dollars in lost revenue for higher education. Some were harmed more than others, such as Western Michigan University, which Mantella has already made significant layoffs and budget cuts to offset the losses. Schools also received millions of dollars in federal CARES Act stimulus funds last month, at least half of which is reimbursed to students. But at this point, school leaders are running through Davies multiple scenarios for spending and teaching students. “We are planning to offer face-to-face enrollment in the fall and to meet any and all conditions around public health and well-being,” Grand Valley State University President Philomena

Mantella told MiBiz. “I say that, but I don’t know 100 percent what those specific conditions are.” She added that GVSU is planning “multimodality enrollment” that may include a mix of online and in-person learning. Most of GVSU’s student housing is private suite-style apartments, while empty event space could be used for classes. Earlier this month, a group of “health technical advisers” including local health experts, hospitals and public safety officials were meeting several times a week. Central Michigan University also used an emergency management team to focus on public health and safety while making sure students “progress along their academic goals,” said President Robert Davies. The school is planning for four to five different scenarios for the fall semester that include a mix of in-person and online classes. “What will guide us in these efforts is the safety and health of our students and making sure there’s progress toward their academic goals,” he said. Western Michigan University also is planning to have in-person classes this fall. “If the government imposes restrictions, we’ll do what’s necessary to safely deliver the curriculum and instruction,” said WMU spokesperson Paula Davis. “It’s hard to predict the future but we want to get back to campus.” At Davenport University, a private school with 10 campuses across Michigan, administrators are planning for a mix of classroom and online instruction this fall, according to President Richard Pappas. “We’ll see what happens. We’ll see how the

616.784.5833

pandemic (goes). September, while it seems like it’s a long way off, is not,” he said. Davenport will follow U.S. Centers for Disease Control and Prevention social distancing guidelines and require staff and students to wear masks, and will do health screenings and testing such as temperature checks, Pappas said. The university is having its safety plan reviewed by the chief medical officer at Metro HealthUniversity of Michigan Health. Since the 1990s, Davenport has offered online learning, so faculty was prepared to handle the transition when the pandemic hit Michigan in March. The university, with 6,800 students, transitioned to all online instruction within two days, “and really had almost no interruption,” Pappas said. Davenport also decided to offer only online instruction for the summer term, Pappas said.

“I think there’s going to be some shift and some very significant impacts in college enrollment. There will be institutions that struggle with this transition, and we’ll struggle with the disruption. But I think we’ll come out stronger in the end.” — PHILOMENA MANTELLA President of Grand Valley State University

Reimbursing students Across the state, higher education institutions saw a swift drop in revenue, primarily from funding reimbursed to students for room and board. The shortfalls extend into next year with the unlikelihood of sporting or other public events. Michigan State University will have a roughly $50 million budget shortfall this fiscal year, which could reach $300 million the next fiscal year. The University of Michigan could see losses of up to $1 billion by the end of 2020. Western Michigan University faces a shortfall of $45 million this year, which could increase up to $85 million over the coming school year. Over the past month, WMU officials have announced more than 200 layoffs, salary reductions for some staff and a 20 percent cut to its Athletic Department budget. The university has frozen fees related to tuition and room and board. “The university is under financial strain, but we recognize students and families are also under financial strain,” Davis said. GVSU’s financial outlook is less bleak. The school anticipates a $13 million shortfall during this fiscal year, which can be absorbed by reserves. The school also received $18 million in CARES Act funding. While half of that is required to be returned to students, Mantella said the full amount will be prioritized for students, such as financial aid and internship support. CMU is facing a budget shortfall of upwards of $25 million, yet it was one of the first public universities in the state to freeze tuition for next year. Last month, the school also announced that it would provide on-campus employment to any first-year student who needs it, deferred payment and flexible plan options, and an increase in need-based scholarships. Still, Davies said further budget losses, including from lower state appropriations, require a “lot of future prognosticating. We’re planning for nine

to 10 different scenarios of operations and budget implications.”

Enrollment future The pandemic struck as enrollment was declining at most Michigan public universities, and leaders say it’s too soon to tell whether fall semester uncertainty will lead to an “off year” or students starting their education at community colleges. Davies said CMU will have a clearer enrollment outlook for the fall over the next month. Over the past decade, CMU’s enrollment declined by about 9,000 students, or roughly 31 percent. From 2018-19, enrollment declined at Michigan public universities by nearly 6,500, one-third of which took place at CMU. Since CMU’s announcement of scholarships, student jobs and freezing tuition, “our number of deposits and reservations for orientation have started an uptick,” he said. “Will it replace a number of students who just decide not to go? That’s a whole different discussion.” At Western, enrollment is down nearly 25 percent over the past 15 years, with year-over-year declines for the past decade. GVSU’s Mantella says school leaders will need to be intentional about the type of programming they provide while ensuring student safety for families. “I think there’s going to be some shift and some very significant impacts in college enrollment,” Mantella said. “There will be institutions that struggle with this transition, and we’ll struggle with the disruption. But I think we’ll come out stronger in the end.” MiBiz Senior Writer Mark Sanchez contributed to this story.

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SEPTEMBER 3, 2013 VOL. 25 • NO. 23

SERVING WESTERN MICHIGAN BUSINESS SINCE 1988

Faith-based philanthropy drives local affiliate of National Christian Foundation By JANE C. SIMONS | MiBiz jsimons@mibiz.com

‘We’ve made some bad beer’ Quick decisions, making messes and staying humble drive explosive growth for Founders Brewing Co.

By NATHAN PECK | MiBiz

“The ‘uber’ beer geeks took notice. They shouted about us, and that allowed us to move in a positive direction. The attention put us in the limelight and made us the darlings of the industry,” Stevens explained. “The beer geeks are the reason this beautiful ike Stevens, president of Founders Brewing Co., can little disaster we call the craft beer industry exists.” laugh now about some of the poor choices the Grand Yet, by the mid-1990s, the company was also butting up Rapids-based craft brewer made over the years. against a series of constraints: a small production space, a lease He even cops to perhaps the worst sin of all for on a space that was too small for the growing business, and an a craft brewery. organizational structure that had Engbers and Stevens handling “We’ve made some bad beer,” Stevens said with too much of the day-to-day operations. a laugh. It’s not the sentiment that one would expect to come from the brewer of one of the world’s top-rated stouts, but it was the company’s willingness to try new ideas and fail that marked the To address those concerns, the late businessman Peter Cook, a point at which Founders Brewing Co. transitioned from a smallmentor to Stevens, pressed the company to formalize its relascale, also-ran to an internationally renowned brewer of some tionship with its board. Cook pushed them to focus on the of the boldest beers on the market. core of their business and leave other concerns to their growIn the mid-1990s, Founders Brewing was in trouble. In its ing staff. small production and taproom space on Monroe Avenue just “He wasn’t into discussing finances — he didn’t really underblocks from downtown Grand Rapids, co-founders Dave Engbers stand what we were doing,” Stevens said. “We and Mike Stevens realized that going with what the were undercapitalized, he told us. ‘Don’t worry industry demanded at the time was not leading about the mess you’re creating, that’s what investhem to success. Tossing out the accepted playtors are for.’ When you have drive, when you book, the duo instead opted to make the beers they have a product that is selling, don’t look back — were seeking: big, bold and unlike other offerings let others clean up your mess.” currently on the market. The effect was two-fold: Engbers and Stevens As part of that shift, Founders’ taproom became had to formalize their roles within the organizaa testing ground where the company released its tion, and the company began to bring in experts new and experimental brews. Some flopped. A few grabbed drinkers’ attentions. Today, a handful — MIKE STEVENS to handle areas where there were deficiencies. of those beers are among Founders’ most popuFounders Brewing Co. Whereas the two frequently touched all aspects of their business, they were forced to step back. lar brands: Dirty Bastard, Breakfast Stout (and its Their board had always included investors, but amped-up, barrel-aged brother, Kentucky Breakfast they now had a group with expertise that could Stout) and Double Trouble. But back then, they were help guide them forward. only experiments written in chalk on the daily specials board. “It held me accountable to shareholders and the people who “We tried making a lager when we shouldn’t have. We’ve done have a stake in the business,” Stevens said. “It made me better. some things with spices that didn’t turn out well,” Stevens said. Dave and I had to be better.” “But if we didn’t do that, we wouldn’t have made KBS.” But the transition was at times difficult. In pockets across the U.S., on blogs and message boards, “Personally, I’ve had more roles here than anyone. When Founders’ beers began attracting the attention of a growing numwe started, there was just three of us. We all helped … brewing, ber of craft beer aficionados. As the company’s beers started winning awards, the American drinker began turning away from the pale, fizzy domestics in favor of bolder craft brews. See FOUNDERS BREWING on page 12 npeck@mibiz.com

Make messes

“It feels like we’ve been building the plane while flying it.”

hilanthropic families throughout Western and Northern Michigan are putting their faith into action with their money. And they’re turning to a local affiliate of the National Christian Foundation (NCF) to help them. Locally, 350 families served by the organization’s West Michigan office contributed $36 million to individual “Giving Funds” at NCF and recommended more than $31 million in grants in 2012 to charities of their choice, said Jamie Kuiper, president of NCF’s West Michigan office headquartered in Grand Rapids. “That’s a lot of money,” Kuiper said. “Our office is the third largest NCF office in the country measured Kuiper by fund balance.” Kuiper declined to identify any of the 350 families. “We have some major donors, but I can’t tell you who they are,” he said. “They want to remain anonymous, and we provide a mechanism for anonymous giving.” Mike Stevens, president Founders BrewingGiving Co. NCF’sofdonor-advised Funds offer PHOTO: JEFF HAGE families an “easy-to-establish, low-cost, flexible” vehicle for charitable giving that’s an alternative to establishing a private foundation, according to the organization. Donors’ efforts have helped to make the Atlanta-based National Christian Foundation 19th largest philanthropic 2014 OUTSTANDING GROWTHthe AWARD organization in the United States, according to a 2012 article in The Chronicle of Philanthropy. In late July, officials with the NCF announced that they had reached a milestone their giving history when Grand Rapids-based craft brewerin founded in 1997 by Mike Stevens andthey Dave Engbers granted their four billionth dollar

FOUNDERS BREWING CO. ■

to the Association of Faith Churches and The NCF West Michigan affiliate has Ministers International, a Minnesota- an 18-member board which includes Jerry based international ministry that plans Jonker, chairman of the board and a partto use the money to support an orphan- ner in Grand Rapids-based Home Acres age in Thailand that provides housing and Supply Co.; Wendell Christoff, co-owner schooling for children rescued from the of Litehouse Inc., a salad dressing, sauce sex trade. and dip manufacturer with operations That grant was recommended by giv- in Lowell; and James Dally, a Kalamazoo ers in Midland through their Grounds for businessman. a Better World Giving fund. The group is Dally said the ability to have direct served by the NCF’s Eastern Michigan involvement in where his donations are office located in Birmingham. going and the asset-based giving approach “We are a well-kept secret,” Kuiper said. are appealing to him and his family. “A big part of it is our business model. Our However, his faith in God is what really local operating budget is about $360,000. led him to the organization. He said he was SERVING WESTERN MICHIGAN BUSINESS SINCE 1988 We don’t spend much on marketing.” referred to NCF by successful friends who The local affiliate had total revenue of were also involved in faith-based giving. more than $499,000 and expenses of about “Biblically, it’s very clear that ‘he that $384,000 in 2011, according to the most refreshes others will be replenished,’” recent IRS Form 990 available. Dally said. “I’ve applied those biblical Donors to NCF are attracted to the principles to what I do.” mission andBy ministry of the organizaWhat Dally does is manage several NICK MANES | MiBiz tion foundednmanes@mibiz.com in 1982. The three Christian West Michigan-based businesses. He is the financial experts who laid the groundwork founder and owner of Biddergy.com, an A West Michigan medical device development for the NCF were looking for a way to “simonline consignment and business liquidaand manufacturing company is consolidating to plify the process of giving, multiplyitsthe tion auction Kalamazoo and expanding operations, while website; Adventure Learning still planning to leave a footprint in Grand Rapids. results and glorify the Lord.” Centers, which operates child care centers Oshtemo Township-based Keystone “We went on to introduce one of the first in Solutions Portage, Caledonia and Kentwood; and Group invested about $500,000 into a new Christian-focused donor-advised Mavcon a construction and develop24,000-square-foot facilityfunds, with a clean room Inc., in what we nowKalamazoo call the Giving said company. All three businesses are where itFund,” will move all ofment its product development and manufacturing Larry Burkett, a best-selling author andoperations. based at offices in the Kalamazoo/Portage With theofnew building up and running, entrepreneur, who is one NCF’s founders. area. Keystone plans to consolidate all of its manu“We also developed special resources and expertise as well as facturinga to the siteexpertise and moveinout of aThe facility asset-based giving, tax smart the character and integrity of the individnear thewhich GeraldisR.the Ford International Airport in Rapids. way to donateGrand non-cash assets such as real uals involved with NCF is what Dally said Having two separate manufacturing facilities estate and business interests.” keeps him involved. made it difficult to show customers Keystone’s full The localset of affiliate was originally Founder Burkett said over the past three capabilities, said Robert Nesky, Keystone’s founded in 2000 asofthe Michigan decades, NCF has become the nation’s director salesWest and product development. “Our intention was always to have largest the business Christian Foundation, but joined forces provider of donor-advised funds IN givers. roof, but it has taken to actuwith the NCFunderneath because ofone the resources and a while focused primarilyMADE on Christian ally put that together,” said Nesky, noting that the expertise it provided. “Any charity MICHIGAN that doesn’t violate our consolidation plan had been in the works for some “The reason for“It’s thea affiliation with NCF statement is eligible to seekGroups fundKeystone Solutions time. good thing we waited because our busi- of faith provides product was that the tools they are able to offerWe giving afrom said. “Ourdevelopdonors ness has actually expanded. now have largerus,” Kuiper ment services and contract the two older facilities ers are muchfacility morethan sophisticated,” Kuipercombined.” are people who share our worldview as it manufacturing at a new The Grand Rapids location stemmed from a said. “We were one of the first two or three relates to material possessions and what 24,000-square-foot , ISO previous acquisition. affiliates. Now there 28.” operates in a variety God of has called us13485-certified to do.” facility with Whileare Keystone sec-

FEBRUARY 17, 2014 VOL. 26 • NO. 9

Keystone relies on product development business to drive contracts

■ Originally located in the Brass Works Building on North a clean room in Kalamazoo. tors ranging from automotive and aerospace to Monroe Avenue; moved to 235 Grandville Avenue in 2007 renewable energy, majority Michigan. of its business The about firm, MiBiz, whichvisit was founded ■ Sold 111,000 barrels of beer in 2013 COPYRIGHT 2013 © MIBIZ. Print subscriptions are free to qualified individuals who are employed in Westthe and Southwest For further information www.mibiz.com. ■ Volume grew 63% comes from serving West Michigan’s burgeoning in 1997 and had revenues of ■ Off-premise sales were up 46% medical device industry. around $5 million last year, ■ On-premise distribution rose 58% The company, which employs around 10 engiconsolidated its manufacturing under one roof with the new facility, but still plans to maintain a ■ The Association for Corporate Growth West Michigan will neers, had around $5 million in sales last year, but presence in the Grand Rapids area, where it is a member of MiDevice, a consortium of medical present its 2014 Outstanding Growth Award to Founders has grown about 30 percent over the past five years, device manufacturers. Keystone offers clients a full range of product design, contract manuBrewing Co. on March 18. The event runs from 5:30-8 p.m. Nesky said. at the Amway Grand Plaza in Grand Rapids. Visit acgwmich. facturing and logistics services. It mainly serves the medical device, automotive, aerospace and org for more information. While the business is currently about evenly renewable energy sectors. 200,000 180,000 160,000 140,000

FBC BARRELS PRODUCED

120,000

190,000

2014 proj.

112,000

100,000 80,000

70,886

60,000 40,000 20,000

40,937 17,330 6,127 11,898

24,501

0 2007 2008 2009 2010 2011 2012 2013 2014* SOURCE: FOUNDERS BREWING CO.

split between product development and contract manufacturing, executives want to put more emphasis on the manufacturing side as part of the consolidation. Operating in an ISO 13485-certified facility, Keystone plans to grow the product development side of its business, which should translate into additional opportunities in contract manufacturing, Nesky said. “(Product development), more and more, feeds into our contract manufacturing, specifically when it comes to medical devices,” Nesky said. “By expanding our facility and having us underneath one roof, we’re not jockeying around to two different facilities. It really helps show (our customers) what our infrastructure is, and it paints a much better picture for them that as they develop their products, Keystone could also be the contract manufacturer of some of those products. It has had an immediate impact on our business and our pipeline.” Many of Keystone’s clients value that they can work with a single company to develop a product, manage the manufacturing and production

process, and then distribute it, according to previous MiBiz reports. “There are several companies on the west and east coasts that compete with them because that’s where the big medical technology companies are based,” Hank Brown, former CEO of Tangent Medical Technologies in Ann Arbor, said in a previous MiBiz report on the company. “Keystone is a unique brand in the Michigan market.” Tangent worked with Keystone to develop a new kind of catheter called NovaCath. Keystone executives make it clear that the firm is not an OEM, but is instead focused on both design and manufacturing. The products they make do not contain the Keystone brand, but rather the names of its clients, who also entrust the company to handle the logistics of distributing the products directly to hospitals and other medical facilities. While the company is moving the vast majority of its business to the Kalamazoo area where the

company was founded in 1997, Keystone still sees significant value in the Grand Rapids market. For that reason, the company plans to open an office primarily focused on sales at a to-be-determined downtown location in the first or second quarter of this year, Nesky said. The reasoning behind keeping a presence in Grand Rapids, Nesky said, is primarily due to Keystone having a number of customers in the area. The company is also involved in organizations such as MiDevice, a consortium of two dozen medical device-sector firms led by The Right Place Inc. “Keystone is a great company with terrific leadership and we congratulate them on the planned downtown office,” said Eric Icard, a business development manager at The Right Place who leads the MiDevice consortium. Both Nesky and Keystone founder and President Jim Medsker “have been strong advocates for medical device manufacturing in West Michigan and are extremely active in MiDevice.”

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MiBiz / MAY 26, 2020

FOCUS: EDUCATION & TALENT DEVELOPMENT

Davenport University makes progress on operational improvements, eyes growth By MARK SANCHEZ | MiBiz msanchez@mibiz.com decade ago, Davenport University retained just 60 percent of students from one fall to the next. After years of steady improvements, Davenport’s retention rate stood at 77 percent as of 2019, and President Richard Pappas wants to push it further upward to more than 80 percent within five years. The higher retention rate ranks among the achievements that the private, nonprofit Davenport University targets in a new five-year strategic plan known as Vision 2025 that aims to build on improved outcomes of the past 10 years. “It raises the bar pretty significantly for our expectations of ourselves and of our students and the impact it’s going to have on the communities that we serve,” Pappas said of the Vision 2025 plan that details an array of goals for the university and its colleges. When Pappas joined Davenport 11 years ago as president, student outcomes “were not as high” as university trustees wanted. He set out to change that with creation of a division on quality and effectiveness, the hiring of a vice president to run the department, and development of key performance indicators based on “what was important to us, what were the things that we were going to measure that tell us that we were doing a good job over time,” Pappas said. That process

enabled Davenport to better “know where we are.” “And if you don’t know where you are, you don’t know where you’re going,” he said. Through an emphasis on performance data, metrics, data analytics and market research, Davenport has raised key performance Pappas outcomes. Over the decade from 2009 to 2019, Davenport’s graduation rate increased from a low of 19 percent to 49 percent, rivaling other public and private colleges in Michigan. The Vision 2025 plan targets further improvement in the graduation rate to 55 percent. Davenport’s satisfaction rate among graduates improved over the decade from 88 percent to 95 percent. The employment rate among graduates has increased as well, to 92 percent as of 2019 compared to 84 percent in 2013. In driving a higher retention rate, Pappas credits an initiative that provides more support and peer mentoring for first-generation college students “who didn’t have someone to guide them in the past.” The effort works to make sure first-generation students are “making the right choices” and to help them navigate new issues such as scheduling or financial aid that nobody in their family had prior experience with, he said. “If you’re going to lose your first-generation

“We are in a much better shape than we’ve been in a long time. We’ve really raised the bar.”

students, our studies show some campuses, and raisthat you’re going to lose ing admission standards, them in the first year, so Pappas said. it’s really key that we have Over the last decade, very strong first-year planDavenport has launched 24 ning for this first generanew degree programs. They tion group,” said Pappas, include forming new graduwho calls raising the retenate programs in data analyttion rate “one of the more ics and cybersecurity, plus — RICHARD PAPPAS bachelor degrees in nurschallenging things in Vision President of Davenport University 2025.” ing, occupational therapy, “If we raise that group health informatics and up, we will raise that (reteninformation management. tion rate) into the 80s,” he said. Davenport’s enrollment now stands at about Davenport today also has a better student 6,800 students at campuses in Caledonia and mix. In 2009, seven out of 10 Davenport students Grand Rapids, plus Holland, in Kalamazoo at were adults working on a graduate degree. Today, Kalamazoo Valley Community College, Lansing, enrollment is evenly split between adults and traMidland, Traverse City, Warren, and two in ditional college-age students. Graduate student Detroit. More than half of the students are at enrollment also has more than doubled to 21 percampuses in West Michigan. cent of total enrollment. The university’s Vision 2025 aims to find ways to “We are in a much better shape than we’ve grow Davenport’s enrollment again. Pappas expects been in a long time,” Pappas said. “We’ve really the university to exceed 8,000 students within five raised the bar.” years under the new strategic plan. Other changes Davenport has made over “I do envision enrollment growing again and the years include closing smaller campuses in growing to a good number,” Pappas said. “But Battle Creek and elsewhere where the university really most important to us is are we graduatcould not offer a full schedule. The university also ing, are we retaining, and are we placing them in moved campuses in Kalamazoo and Midland goods jobs? All of it’s important. If you’re enrollinto local community colleges and decided not ing students who aren’t going to be retained, to compete with community colleges for many you’re doing them and yourself no good.” two-year associate degrees. In February, Davenport received the 2020 In the years after the Great Recession, Michigan Performance Excellence Award from Davenport’s enrollment spiked to more than the nonprofit Michigan Performance Excellence 12,000 in 2013, a time when many colleges grew (MIPEx), which uses criteria from the prestias people who lost their jobs during the economic gious Malcolm Baldrige National Quality Award downturn went back to school. Enrollment then presented annually by the U.S. Department of declined in the years after the recession when Commerce. The state award indicates “that we the economy improved and part-time students are definitely on the right track,” said Pappas, went back to work. Other losses stemmed from who hopes Davenport can win the national eliminating many two-year degrees, closing Malcolm Baldrige National Quality Award.

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T H E C A M PA I G N F O R G R A N D VA L L E Y S TAT E U N I V E R S I T Y

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Uncertain future ahead for state’s ‘Futures for Frontliners’ program By JESSICA YOUNG | MiBiz jyoung@mibiz.com

new program aims to give frontline workers in the COVID-19 pandemic a pathway into higher education. Despite its initial fanfare, the “Futures for Frontliners” program, announced last month by Gov. Gretchen Whitmer, lacks a roadmap or timeframe for implementation. Whitmer touted the proposal, which offers tuition-free post-secondary education to essential workers, as the “first program of its kind in the nation.” At the time, Whitmer said her administration was inspired by the federal government’s support of soldiers returning from World War II and described the program as a “G.I. Bill for workers on the front lines of the coronavirus pandemic.” Higher education officials, however, say they know very little about the program, other than what Whitmer announced a month ago. “We don’t have any more information on the program than you probably do,” said Mike Hansen, president of the Michigan Community College Association. Hansen, who works with the state’s 28 community colleges, anticipates the Futures for Frontliners program will be modeled after the recently passed Michigan Reconnect Grant Program, which provides tuition-free college for adults over age 25. “The Futures for Frontliners would be for a more focused group and for anyone over 18, I believe, but the

basic framework could be modeled on MiReconnect,” Hansen said. At press time, neither Michigan Reconnect nor Futures for Frontliners has state or federal funding available to support them. That means, in reality, both programs are still just ideas, according to Hansen. “Given the current economic climate, finding new revenue for either program will be challenging,” he said. “That said, we are supportive of any program that removes financial barriers to individuals who want to start or finish a degree at a community college.” Futures for Frontlines also still requires legislative approval to be funded and implemented, which may take a while, according to Daniel Hurley, president of the Michigan Association of State Universities. Hurley, who has been in regular contact with the governor’s office regarding other university challenges related to COVID-19, does not believe the Futures for Frontliners program could possibly be passed or funded before January 2021. In addition, if the program is a modified form of the Michigan Reconnect program, it will exclude potential participants who want to attend four-year universities. “We did not succeed at getting four-year universities into Michigan Reconnect, so, unfortunately, I don’t think state universities will be included (in Futures for Frontliners),” Hurley said. The Michigan Reconnect Grant Program was modeled on a “highly successful bipartisan program in

While the Futures for Frontliners program remains in limbo, GRCC is offering free online courses in a range of topics through June 30 for workers staying at home because of the current pandemic. COURTESY PHOTO Tennessee,” according to the governor’s office. The goal of the program is to provide a tuition-free way for non-traditional students to get “in-demand” industry certificates or associate degrees. The program aligns with Whitmer’s goal, announced in her 2019 State of the State address, of raising the number of people in Michigan who hold post-secondary degrees to 60 percent of the adult population by 2030. Whitmer’s office did not respond to requests for comment for this report. In theory, Futures for Frontliners will open the opportunities available from the Michigan Reconnect program to people without college degrees who are staffing hospitals and nursing homes, stocking the shelves at grocery stores, providing child care to critical infrastructure workers, manufacturing personal protective equipment, protecting public safety, collecting trash or delivering supplies during the crisis — regardless of their age. Dav e Mu r r ay, c om mu n ic ations director at Grand Rapids

Community College, said school administrators have not yet received additional information about the programs but are “looking forward to hearing more.” For now, higher education institutions and the people who have worked through the sudden coronavirus crisis must wait while the Future for Frontliners program possibly makes its way through the state Legislature. People in West Michigan will be in need of new skills “as we emerge from the pandemic,” Murray said, adding that graduates of existing GRCC programs are already deployed in the field as so-called frontline workers. “Our graduates are working in law enforcement and health care as first responders. They’re working in other essential roles, such as information technology and manufacturing. We also have a partnership with Meijer to train people for retail management,” Murray said. “As businesses reopen, and as people need new and different skills, our college is positioned to help them.”

“Given the current economic climate, finding new revenue for either program will be challenging. That said, we are supportive of any program that removes financial barriers to individuals who want to start or finish a degree at a community college.” — MIKE HANSEN President of the Michigan Community College Association

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MiBiz / MAY 26, 2020

ECONOMIC DEVELOPMENT SISTERS WHO LEAD Continued from page 1

The study follows a 2017 publication by the group that detailed barriers to career advancement for women of color. Sisters Who Lead is a regional affinity and wellness movement for women of color focused on creating data-driven solutions to foster inclusive workplace cultures. Women engaged in the group’s mission live in six West Michigan counties: Allegan, Calhoun, Kalamazoo, Kent, Ottawa and Muskegon. Co-authored by Cohen and Patricia VerDuin, the latest study was completed in conjunction with researchers at Calvin University and uses a systems lens to examine and address organizational culture and behaviors that make it difficult to attract, retain and promote diverse talent, especially among women of color. With data now readily available, the researchers say it’s time for organizations and executives to start asking themselves questions such as, “Now that we know better, are we doing better? And if so, how will we measure better and hold ourselves transparently accountable to doing better?” The previous 2017 study focused on the moral imperative for hiring and promoting diverse talent to executive or C-suite positions. The recent follow-up highlights the economic imperative for organizations to promote women of color, citing a Harvard Business Review study that predicts women of color to become the majority of the U.S workforce by 2060.

to replicate in your company. CEOs and people in C-suite positions that lead to hiring have to ask themselves: ‘Who have I been to lunch with? Who is in my network?’” That 60 percent of respondents held a master’s or doctoral degree stood out to Mel Trombley, director of leadership programs for Grand Rapids Area Chamber of Commerce. “I think that this should be a big wakeup call for organizations that women, especially women of color, are absolutely knocking it out of the park when it comes to higher education,” she said. “We (women) are capable and we have the work ethic, so organizations do not have an excuse for not promoting women.”

“To our businesses and our institutions, I think this is a perfect time to reimagine the workplace. This is a reminder it doesn’t have to be perfect — you just have to give it a try.”

MAY 26, 2020 / MiBiz

The Sisters Who Lead report includes a survey that examines why women of color can struggle to rise to executive leadership or C-suite positions and what deters them from staying at an organization. Here are some highlights:

Lack of coaching

The study also examined access to sponsors and executive coaching for women of color. Less than a quarter of respondents had ever had a coach or a mentor. Respondents who indicated they did have a mentor, coach or sponsor said that person was most likely to be a woman. Nearly a third of survey respondents indicated they never or rarely have informal interaction with a senior leader during work or have a substantive interaction with a senior leader outside of work. “Career mobility is not just an issue of talent, ambition and degrees,” Cohen said. “It’s about relational capital and also being groomed for the next level.” Author and educator Shanika Carter conducted unrelated but similar research on experiences of minorities in organizational leadership while pursuing a doctoral degree, which she ‘Big wakeup call’ compiled into a book, “To Lead or Not to Lead: The study takes a deeper look at the connecBreaking the Glass Ceiling Using Lessons from tion between gender and race, and institutional Past Experiences.” behaviors that make it hard for women of color Carter, who grew up in Muskegon Heights, to advance in the workplace. It involved comweaves in her own experiences at previous jobs munity-based research that went through an with stories from minorities and their struggles Institutional Review Board process in collaboin the workplace. ration with the Calvin University Center for Social As a copywriter and author, Carter said she Research. The study, which aggregated data from lacked mentors who could guide her in her 92 respondents in mid-management and execucareer. tive leadership positions, gave women of color “I didn’t meet writers or know writing was an opportunity to reveal details about workplace something you could have as a career or a job,” climate and culture without jeopardizing their she said. “I knew that was something I liked doing identities, careers or psyor could do, but I never had chological safety. someone say, ‘Hey, you can Some of the key takemake a living out of this.’” aways include: People she interviewed • 60 percent of responalso reported a lack of mendents hold a master’s or doctors and supervisors who toral degree took a real interest in them. • 27 percent were man“We didn’t have the menagers while 9.8 percent had tors who sought us out to get titles of senior vice presito know us,” she said. “They dent, vice president or don’t see people in leaderhigher ship that they feel they can • 80 percent expressed identify with.” ambition to be promoted to In a practical applicathe next level and want to tion of the Sisters Who Lead become a top executive study’s findings, VerDuin • 75 percent agreed that organized group-based virtheir race made it harder to — PATRICIA VERDUIN tual coaching sessions durreceive a promotion, and ing the ongoing COVID-19 Sisters Who Lead 50 percent agreed gender shelter-in-place order. played a role in missing out Access, affordability and on a raise or promotion simply not understanding • 75 percent said they were often the only how coaches or sponsors can help are some woman of color in the room reasons women of color don’t seek them out, • 40 percent said they were likely or very likely VerDuin said. She invited a group of Latina to leave their position within two years women to meet regularly via Zoom to discuss One barrier to advancement is the region’s work, self-care, family and other concerns. referral-based hiring practices. Researchers note “This is a microcosm of what you can do with a direct correlation between the social capital of the data and apply it,” VerDuin said. “To our busiC-suite leaders and senior executives within an nesses and our institutions, I think this is a perorganization and the racial and gender makeup fect time to reimagine the workplace. This is a of employees. reminder it doesn’t have to be perfect, you just “West Michigan does a lot of referral-based have to give it a try.” hiring,” said Cohen, a consultant, motivational In addition, the study showed that many speaker and emotional intelligence expert who women of color experience challenges related to speaks on equity and psychological safety in being the first woman or person of color in their the workplace. “If that CEO’s proverbial rolodex position, which creates added psychological and looks like them, then that is who you are going emotional stress. A survey from LeanIn.org and

GENERAL WORKING & CAREER EXPERIENCE

3/4 Nearly 3/4 of respondents somewhat or strongly agreed that their race will make it harder to get or has played a role in missing out on a promotion or chance to get ahead.

1/2 Nearly 1/2 of respondents somewhat or strongly agreed that their gender will make it harder to get or has played a role in missing out on a raise, promotion or chance to get ahead.

LIKELIHOOD OF LEAVING JOB WITHIN 2 YEARS VERY LIKELY TO LEAVE JOB SOMEWHAT LIKELY TO LEAVE JOB NEUTRAL LIKELIHOOD OF LEAVING SOMEWHAT UNLIKELY TO LEAVE JOB VERY UNLIKELY TO LEAVE JOB DO NOT KNOW LIKELIHOOD OF LEAVING

19.6% 19.6% 16.3% 16.3% 20.7% 7.6% SOURCE: SISTERS WHO LEAD STUDY

McKinsey & Co. refers to the state of being “onlys” as emotionally exhausting, and it is exponentially higher for women of color in senior leadership. Issues around psychological safety keep many women of color from speaking up at work or prompt them to leave an organization. Employees have to be able to live and thrive in a community after they get off work too, Cohen said, and sometimes a lack of cultural diversity, multi-ethnic services and businesses, and diverse places of worship prevent people from feeling safe, accepted and eager to build roots in the community.

Systems-level changes Ultimately, the goal of the study is to provide regional employers with recommendations and strategies to improve diversity, equity and inclusion, and move from “leaders seeing and engaging the data to thoughtful placemaking and action rooted in human-centered design.” The study’s authors encourage organizations — from the human resources department to the CEO — to rethink referral-based hiring practices, reflect on their social and professional networks, and implement ways to increase talent engagement, recruitment and promotion of women of color. The Grand Rapids Chamber offers executive diversity coaching, diversity assessments to member organizations and the Athena Leadership Forum, which creates

opportunities for women to mentor and lift one another up and build relationships across their typical circles. “Athena is a really good model of utilizing some of the directives from the Sisters Who Lead study about collecting data, increasing social capital and access to leaders, and how that can help change opportunities for women and women of color,” Trombley said. “I think this (study) is a great resource for employers because it presents data, it presents the case for why we need to promote and hire women and women of color, and it gives some how-tos.” Organizations need adaptive leadership to stay current and relevant and attract the best talent. “One thing this study does is it helps organizations think about system-level practices, policies and behaviors,” Cohen said. “If you are a gatekeeper for the talent of your organization, you have to think about who you have meaningful relationships with.” Besides the undue emotional burden of being an “only,” women of color also feel isolated by Euro-centric professional development training and resources. The study notes women of color would be better served if they could choose culturally relevant experiences. “The recommendations are very concrete, and it’s about changing the culture of an organization,” VerDuin said. “It starts with the person at the top and the leaders of the organization saying they want to do it differently.” Visit www.mibiz.com

BUDGETS

Continued from page 1 this a recession that will last at least through 2021 in a fairly serious way,” Bartik said. “The biggest downside risk to the recovery is whether the federal government acts.”

Federal aid in limbo The May 15 Consensus Revenue Estimating Conference (CREC) brought agreement among varying fiscal projections by the State Budget Office and the House and Senate fiscal agencies. They agreed Michigan faces a $2 billion shortfall this fiscal year for the General Fund and School Aid Fund. Revenue shortfalls — driven by less income and sales tax revenue — are expected to continue in the next two fiscal years. Bartik said the CREC’s figures are more optimistic than projections by the U.S. Congressional Budget Office. Researchers from U-M’s Research Seminar in Quantitative Economics issued their own forecasts during the revenue estimating conference. Assuming $600 billion in federal stimulus aid for state and local budgets across the U.S. and a severe second wave of COVID-19, U-M economists forecast the state’s unemployment rate will steadily decline to 6.8 percent by the end of 2022. The budget forecasts have heightened awareness for additional federal aid. The CARES Act included $150 billion for these budgets, but it was limited to large cities and only covered new expenses related to COVID-19. In Congress, House Democrats approved a $3 trillion stimulus package Gawron that included $1 trillion for state, local and tribal governments. It was swiftly rejected as an option by the Republican-led Senate. In a video message, U.S. Rep. Bill Huizenga, R-Zeeland, called the Democrats’ bill package a “liberal, progressive, socialist-Democrat grab bag. … It has zero chance in the Jacobs Senate.” A bipartisan bill in the Senate would create a $500 billion fund for state and local governments in three tranches based on a formula that considers population, COVID19 cases and revenue losses. Bartik said a formula-based disbursement will be key as the crisis unfolds, which at this point is unpredictable. State lawmakers have called on the Whitmer administration for a “budget correction plan” to resolve this fiscal year’s shortfall, but it’s unclear how that process will proceed while federal aid is in limbo. “We have a massive revenue shortfall brought on by this economic shutdown that will affect our families, schools, local governments and vulnerable citizens,” state Rep. Shane Hernandez, R-Port Huron, said in a statement. Hernandez chairs the House Appropriations Committee. “The people need to hear from the governor what her priorities are that reflect this new reality facing our state. Time is of the essence and we look forward to resolving this challenge.” On May 20, the state underscored the economic effect of COVID-19, reporting the seasonally adjusted unemployment rate reached 22.7 percent in April. Whitmer reiterated the state’s need for federal support. “Families across the country need help,” Whitmer said in a statement. “We’re counting on the federal government to work together to provide additional flexibility and aid for states like Michigan to continue supporting essential services like health care, education, and police and fire departments. We will get through this together.” Visit www.mibiz.com

“Cities are not asking for a bailout. Muskegon is looking for government partners to help support us due to this crisis that has shut down the economy. Cities are severely limited in their ability to raise revenue, at the same time we’re required to maintain obligations to our citizens to provide for the protection of life.” — STEPHEN GAWRON Mayor of Muskegon

Locals feeling it While state agencies have issued furloughs and started work-sharing programs to cut costs, local governments also are feeling the pain. Not only is tax revenue down, but they anticipate further setbacks as spring and summer programming is canceled, such as the Tulip Festival in Holland and the Coast Guard Festival in Grand Haven. The Michigan Municipal League hosted a conference call with city leaders across the state earlier this month, highlighting the need for federal aid. Kalamazoo anticipates a ripple effect on city services due to hundreds of layoffs at Western Michigan University, said City Manager Jim Ritsema. Layoffs may be inevitable, he added, as the city’s workforce makes up two-thirds of the budget, and capital projects will be deferred. “There will be impacts on core services to the community that relies on us even more during this time of crisis,” Ritsema said. The city of Muskegon has furloughed, laid off or eliminated 31 percent of its budgeted positions, said Mayor Stephen Gawron. That includes a 20-percent reduction in Fire Department staffing and holding vacant 15 Police Department positions. The police records department has been mostly furloughed, as has most of the City Clerk’s office, he said. “Cities are not asking for a bailout,” Gawron said. “Muskegon is looking for government partners to help support us due to this crisis that has shut down the economy. Cities are severely limited in their ability to raise revenue, at the same time we’re required to maintain obligations to our citizens to provide for the protection of life.” Gilda Jacobs, president and CEO of the Michigan League for Public Policy, said this month that the Great Recession provided lessons in government budget cutbacks and resulting infrastructure divestment. “Policymakers in Lansing must learn from their predecessors’ mistakes,” Jacobs said. “Despite the gloomy revenue outlook, it is bad for the economy and our residents to address the revenue losses through deep cuts, especially to the areas our residents and businesses depend on most like quality schools, safe roads and water systems, and dependable health, economic and work supports. We simply can’t cut our way to prosperity or health.” Meanwhile, the urgency for the stimulus is growing, Bartik said. While the state’s fiscal year ends in September, many local and school district fiscal years turn over at the end of June. “The federal government should act on this now,” he said. “If you wait longer, you’re going to have all these states make decisions, then aid may come in and it’s going to be kind of a mess.”

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MiBiz / MAY 26, 2020

FOOD BIZ SOCIAL DISTRICTS Continued from page 1

Jeff Lobdell, owner of Grand Rapids-based Restaurant Partners Management LLC, will open five of his restaurants in northern Michigan on Friday. The restaurateur hopes as soon as possible to open his company’s downstate locations, which include Bagel Beanery, Sundance Grill, The Beltline Bar & Mexican Cafe, Omelette Shoppe & Bakery, Rockwell Republic, and the Noble Restaurant. “We’re in uncharted waters and doing our best to navigate this,” Lobdell said. “I think it’s great in northern Michigan we’re trusted to open. Our goal is to just demonstrate we can do this. We’re just looking to Lobdell get a breath of fresh air and be able to open our doors safely.” At some of his restaurants, Lobdell said he will not truly be able to serve up to 50 percent capacity if he also abides by the 6-foot social distancing rule, making outdoor seating an Bliss important part of reopening.

Space will be critical The city of Grand Rapids has existing special events and temporary use policies that city officials will use to create multi-business social zones Johnston during a COVID-19 recovery special event from June 1-Nov. 30. Alcohol consumption would be allowed, subject to requirements by the Michigan Liquor Control Commission. “We’ve heard from a number of our business owners here in town,” Grand Rapids Mayor Rosalynn Bliss Winslow said during the May 19 meeting. “They would support us to create spaces, knowing that space is going to be critical for them to operate, and have asked how we can be creative in utilizing outside spaces like sidewalks, potentially parking lots and parking spaces.” Proposed social zones in Grand Rapids would not necessarily mean full street closures, said Louis Canfield, the city’s development center manager.

Grand Rapids businesses have long discussed blocking off areas in the city to create entertainment districts that would allow people to consume alcoholic beverages and move freely between several establishments. MIBIZ FILE ILLUSTRATION “We’re working on options for fee relief, and also there are some possibilities for state legislation that would expand alcohol consumption opportunities in social zones, so we want to keep monitoring those and keep advocating for them where appropriate,” Canfield said. Stakeholders from the city and local businesses identified 20 potential social zone locations throughout Grand Rapids. The preliminary list of potential zones is “not exhaustive,” Canfield said, but were chosen around areas with at least four restaurants within about 100 feet of one another. The expects permit applications from business and neighborhood associations. Andy Johnston, vice president of government and corporate affairs at the Grand Rapids Area Chamber of Commerce, said he is hoping to see traction soon on statewide legislation to enable local governments to designate social districts. State Rep. Michael Webber, R-Rochester Hills, introduced House Bill 5781 on May 19 that would create social districts where people age 21 and older would be allowed to legally purchase to-go drinks from adjacent bars and drink them in another location while still remaining in a designated area. It allows local governments to specify, if they choose, how the zones are designed. The bipartisan bill has 16 cosponsors, while a similar bill has been proposed in the Senate. “For restaurants and bars, it’s great opening at 50 percent capacity, but 50 percent capacity is still going to make it very hard for restaurants

last week allows retailers statewide to open by appointment starting Tuesday, May 26. Whitmer’s order banning dine-in services at restaurants and bars in other areas expires 28, which is when Winslow hopes locations ‘New reality’ for restaurants May across the entire state will be able to reopen. Limiting the dine-in patrons to gradually reopen The order regarding restaurants and bars in restaurants has been done in other states, usuthe U.P. and northern Lower Peninsula kicked ally with restrictions set at 25-50 percent of dinin Friday of the Memorial Day holiday weekend, ing capacity. which has the potential to bring in many visi“We made it clear there was almost zero tors to tourist destinations such as Traverse City. support or willingness to reopen at 25 percent,” Winslow said “it’s possible” that some estabsaid Justin Winslow, president and CEO of the lishments will not follow occupancy limits, but Michigan Restaurant and Lodging he believes most restaurateurs will Association. “The overhead wasn’t take the order seriously. worth it to reopen at 25 percent.” “They get it, they know these Even at 50 percent capacity, resregulations are not going to be easy Sponsored by: taurants will struggle to operate in but they also know we are all operDAN VOS the long term, Lobdell said. ating in a new reality now,” Winslow CONSTRUCTION “Restaurants operate on very said. “Managing these new regulaCOMPANY thin margins,” he said. “There are tions isn’t just a necessary function just so many fixed costs with a resof agreeing with or working with the taurant. It’s just not enough revenue state, it’s really necessary to ensure to sustain a business, but the reason I’m doing public consumer confidence. They need people it and others are doing it is because we want to to want to come back.” get our rosters back, our people back and open Lobdell said he is not looking at opening weekup our cherished community gathering places.” end as a huge money-making opportunity, but Whitmer’s executive order that loosened rather a chance to demonstrate restaurants can restrictions on retail stores, offices, restaurants operate safely with the new measures in place. and bars in all areas of the Upper Peninsula and “We have a lot of passion for this indusparts of the northern Lower Peninsula went into try,” he said, “and we want to see it back on effect on May 22. Another executive order issued its feet.”

and bars to survive,” Johnston said. “Allowing to extend liquor licenses to outdoor spaces is the kind of flexibility we want to see.”

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NONPROFIT ORGANIZATIONS

Nonprofits hit pause on fundraisers, grapple with loss of revenue By JANE SIMONS | MiBiz jsimons@mibiz.com

escheduled. Postponed. Canceled. These are the words Michigan nonprofits are using frequently these days when talking about the status of fundraisers that are critical to the financial health of their organizations. “Early on, many nonprofits were in the process of postponing or rescheduling,” said Kelley Kuhn, vice president of the Michigan Nonprofit Association, noting the reactions were in response to state-mandated closures implemented to slow the spread of the highly contagious COVID-19. “Now, they’re canceling or postponing.” The cost of these shifts has been devastating for organizations, including one that was counting on raising an estimated $250,000 through an event that is now canceled, Kuhn said. Many nonprofits are thinking about these fundraisers from the perspective of getting only a percentage of revenues they normally would have, Kuhn said. For some nonprofits, the dollars raised at the signature events also affect their ability to get matching grants, said Deb Droppers, owner of the Kalamazoo-based The Event Company and event management program coordinator at Western Michigan University. “They’re not only signature events, they represent federal Sponsored by: dollars that have to be matched GRAND RAPIDS through local intent,” she said. COMMUNITY In the 38 years that she has FOUNDATION been involved with event planning, Droppers said she never realized until now the amount of work that goes into postponing or rescheduling events. That included the 33.5-mile Kal-Haven Ultra Trail Run, which was moved from April to Nov. 1 “after 90 percent of the work to organize it was completed,” she said. “We had to find a date that didn’t conflict with other local and regional events that were being postponed,” Droppers said. “This event with 33.5 miles is big enough that it can’t be close to another marathon or half marathon.” While this event is likely to happen, Droppers said there are many that continue to be in a holding pattern as the effects of the coronavirus pandemic escalate. As the uncertainty continues, many nonprofits are weighing the costs involved in fundraising events versus being able to provide the services that they’re doing, Kuhn said. A survey conducted by Detroit-based Montgomery Consulting Inc. after the coronavirus outbreak in Michigan found that only 5 percent of respondents thought the climate for fundraising would improve, while 87 percent said they thought it would be worse than 2019. In addition to having staff work remotely, closing their facilities and programs to the public or providing very limited services,

NONPROFIT SECTOR NEWS

almost 54 percent of respondents said they had canceled one or more fundraising events while another 36.5 percent said they were considering it.

‘Huge loss’

Kalamazoo-based The Arc Community Advocates to think virtually. The Arc is an advocacy organization that makes it possible for each person with a developmental disability to participate fully in all aspects of the community and to support the effort of each individual to determine his or her own future. Arc Executive Director Sheldon Schwitek said his organization benefits financially from the event, which is sponsored by radio broadcaster Townsquare Media Inc. “We are now looking at virtual opportunities to partner with food trucks and local BBQ places,” Schwitek said. The organization also is considering a different tactic for its “Arctoberfest” fundraiser, scheduled for Oct. 24 at the Kalamazoo Institute of Art. “We’ll be canceling the in-person dinner and will sort out what other opportunities there will be for that event,” Schwitek said. Given the uncertainty surrounding safe levels of activity and engagement, Schwitek thinks the opportunities to host in-person gatherings will continue to be restricted. However, he is seeing an increase in the level of creativity surrounding fundraising efforts, including a virtual wine-tasting featuring a sommelier.

The Community Healing Centers in Kalamazoo reduced the number of individuals in its alcohol and drug treatment program by 50 percent to comply with social distancing policies, said Executive Director Sally Reames. “We’re the only major provider of these services in the Kalamazoo area and we’ve already taken a huge loss,” she said. “We haven’t lost anybody to illness including our nurses and staff, but we have lost half of our revenue because of the reduction in services. We’re scrambling like crazy for grants, and the reality is we don’t know what’s going to happen come July.” The Community Healing Centers’ signature event known as Roof Sit, a three-day function featuring a local disc jockey sitting on a roof in addition to other communityfocused activities, was originally scheduled to take place in June. The event was rescheduled to Aug. 20-22. It is an annual fundraising event for Community Healing Centers’ Children’s Programs that provide treatment and prevention services for children who have suffered physical or sexual abuse. Difficulty connecting “Last year that was a $100,000 event While numerous organizations have been for us, but I don’t see that happening in using virtual platforms to get their mesAugust,” Reames said. sages out in front of people, The Event Despite already receiving financial Company’s Droppers said a virtual testigifts from small family foundations, a monial from a client doesn’t have the same trend Reames hopes will continue, she effect as one delivered in person. thinks people may feel “skittish” about “Putting the client in a storytelling tesgoing out in groups for some time. — DEB DROPPERS timonial aspect gives them the ability to This has led Reames and Roof Sit orgasay, ‘I am the face of where your dollars nizers to consider different options for Owner of The Event Company go,’” she said. “There is a learning curve delivering the event, which the group has in how you do this virtually to create the been holding for more than 20 years. tingle that goes through your body when “We’re trying to do events that are you hear a story. When you’re part of a live event, it’s easier to feel appropriate for the times,” she said. “We will have a food truck that you believe in what that organization’s doing.” where people can drive in and pick up their dinner or offer the Droppers, who also is the founder of the nonprofit Kalamazoo option of sitting at a small table for two and enjoying a band and Experiential Learning Center, said virtual can be used as a bridge, the silent auction. We’ve also decided that we’re going to try an but the power of events like Roof Sit happens when you and the online auction, which we haven’t done before.” person sitting next to you are hearing and believing the testimonial or message being delivered. She said this is what encourages Going virtual people to donate with immediacy. The cancellation of the 35th annual Ribfest, which was to “You miss that connection because when it’s virtual, it’s so diftake place July 30-Aug. 1, also has prompted the leadership of ficult to create that emotional connection,” she said.

“Putting the client in a storytelling testimonial aspect gives them the ability to say, ‘I am the face of where your dollars go.’ There is a learning curve in how you do this virtually to create the tingle that goes through your body when you hear a story.”

Together, we will recover. Inequities are intensified in times of crisis, and our community has responded with collaboration, innovation and generosity. Learn more at grfoundation.org/covid19 Visit www.mibiz.com

MiBiz / MAY 26, 2020

Q&A Brandon Davis Office of Oversight and Public Accountability Director, City of Grand Rapids Tension between Grand Rapids residents and the city’s police department spurred officials last year to create an Office of Oversight and Public Accountability. Earlier this month, Brandon Davis — the office’s interim director since August — was appointed to the job on a permanent basis. The position is meant to strengthen the relationship between the community and the Grand Rapids Police and Fire departments. In particular, the GRPD has faced backlash in recent years over alleged discrimination toward the African American community, and from immigration advocates because of the department’s cooperation with U.S. Immigration and Customs Enforcement. In March 2019, the Michigan Department of Civil Rights took hours of testimony from residents about their encounters with the police. Davis previously worked for the city as a senior labor relations specialist, and is a former senior assistant prosecutor who handled high-profile felony cases in Muskegon County. He began his law career in his hometown of Detroit, where he served as a defense attorney and prosecutor. He spoke with MiBiz about the new role. What made you want to pursue this position? I bring experience to this role that I think is unique. I grew up in an urban area where relationships with police weren’t the strongest. Then, I worked for multiple prosecutors’ offices in senior roles where I tried high-profile cases and worked with police on a daily basis. I saw the work they did day in and day out. My personal experience showed me some of those other parts of it, but my work experience gave me a different view, and my education brought all those things together. When this position came up, it really was the perfect merger between those two worlds. It was my opportunity to serve Grand Rapids that made me a unique candidate for this role. Even though you were just appointed to this position, you were still performing the duties on an interim basis. What have you learned so far? One thing I have learned is the people of Grand Rapids have resilience, and you don’t see this level of citizen engagement in every community. It also has been apparent to me that the community wants to see results. A recurring theme I hear is, ‘We’re sick of talking about it, we want to see results,’ and I think that’s a fair critique. Compared to the rest of the country, Grand Rapids is doing an amazing job, but there is still room for growth and I’m excited to lead that growth and see results. What will the city and community gain from having this new oversight office? It helps protect people’s civil rights. It increases confidence in police when the community knows there is someone holding them accountable; it makes them more credible. A big part of feeling safe is trusting those in power. Sometimes people think of oversight agencies as anti-police, and I don’t see that as my job at all. I see it as when a police officer or fire department does a good job, I say that, and when they need improvement, I say that as well. It also helps to manage risks. Any area of public service when there are mistakes or incidents being made that can result in financial loss, we have a strong accountability that can help reduce that. It builds bridges between police and community, or fire and community. When we talk about the history of police and community over the years, there has been a significant breakdown, and those relationships are not as strong as they should be. This office will help us get to a better place. What is the first goal you hope to accomplish in this new role? My first goal is to make sure we have a plan for how we’re going to operate. It would not be smart to jump out and just start doing stuff. We created a plan collaboratively with other stakeholders. We’re in the communication engagement stage of our strategic launch plan. The first part was research. I looked at models from across the country to see how this is done in other places, and how this can be done in Grand Rapids, which is a unique place. We need to decide how things will work here, but it’s good to look at other models. After that … we did a collaborative design phase with police leaders and community leaders and talked about community-police relations and the need for oversight. We got a preliminary plan for how that would work. The next part of the plan was engagement — take the plan to the community and stakeholders, and that’s the phase we’re in right now. We thought we would be past that by now, but that’s where we’re at; COVID-19 slowed things down. Do you see your role differently during the COVID-19 pandemic? Being in the middle of a pandemic did make me have to adjust the way we plan to engage. Instead of focusing on in-person engagement, it will have to be more digital. I developed a model of going into the community instead of saying, ‘Hey, find me to engage.’ The pandemic changed that. We weren’t able to do things the way we had planned. But engagement can’t stop because of the pandemic, we just have to pivot. I’m grateful for technology and the mayor and commissioners who have been setting the example and working and holding meetings remotely, and for our helpful communications staff. What do you want the community to know about your job? I want the community to know the office is here to serve them, and here to do justice. … We would love to continue to build relationships in any way we can. We’re not here to check a box, we are here to make change.

Interview conducted and condensed by Kate Carlson. COURTESY PHOTO

MAY 26, 2020 / MiBiz

IN THE NEWS M&A

n Grand Rapids-based Charter Capital Partners served as M&A adviser to Oakdale, Minn.-based Supply Chain Services, a provider of automatic identification and data capture and factory automation, in its sale to Santa Monica, Calif.-based Sole Source Capital LLC. The deal allowed Supply Chain Services founder Chip Emery to retire from the company. Sole Source focuses on acquiring industrial lower middle market companies in North America. n Full-service machine shop Grand Rapids Electric Motor Service LLC has been acquired by individual investor Brent Pelishek, according to a statement. EMS sells and repairs electric motors, gearboxes and pumps. The company provides on-site service for customers who need assistance in the installation, alignment or troubleshooting of electric motors. EMS has six full-time employees and three part-time employees. Grand Rapids-based M&A firm Small Business Deal Advisors LLC represented the company in the sale. Terms of the deal were not disclosed. n Holland-based Collision Consolidation Co. LLC has acquired Stonewall Road Automotive Group, a Grand Rapids-based multi-state operator of MAACO automotive repair centers. Stonewall Road Automotive Group operates five locations in metro Detroit, four in Maryland and one in Ohio, according to a statement. The company will continue to operate under the Stonewall Road Automotive Group name and all key people are remaining with the firm following the transition. The company employs 120 people. Grand Rapids-based M&A firm Calder Capital LLC represented Stonewall Road Automotive in the sale. Terms of the deal were not disclosed. n Byron Center-based SurfacePrep, a private equity-backed abrasive products distributor, has acquired Sacramento, Calif.-based Temple Associates Inc., a distributor of loose abrasives and blast equipment. The deal marks the 10th strategic acquisition for Byron Center-based SurfacePrep in the last 18 months, according to a statement. Dallasbased private equity firm CenterOak Partners LLC formed SurfacePrep as a platform company out of its November 2018 acquisition of GNAP LLC. Terms of the Temple Associates deal were not disclosed. n Grand Rapids-based BlueWater Partners LLC served as financial adviser to Monroe, Wis.-based Orchid Monroe LLC in its signing of a definitive agreement to acquire Carter Motor Co., a Chicagobased designer and manufacturer of electric motors, gear motors, rotary converters and tachometers. Orchid Monroe is a manufacturer of components for electric motors, generators and transformers. The deal, terms of which were undisclosed, is expected to close on or around June 30, according to a statement. n High Street Insurance Partners, a private equitybacked agency platform, recently completed three acquisitions, including two deals in West Michigan. The Traverse City-based agency closed in April on deals for Ken Bleeker Insurance Agency in Martin and Trust Shield Insurance Group in Schoolcraft. High Street Partners also expanded outside of Michigan with the acquisition of New Hartford, N.Y.-based Gates-Cole Associates. That deal closed May 4. Since forming in June 2018 with backing from Detroit-based private equity firm Huron Capital, High Street Partners has completed 10 acquisitions. The company now has more than 300 employees at offices in Michigan, New York and Pennsylvania. n Federal regulators approved the $21.9 million acquisition of Community Shores Bank Corp. in Muskegon by Sparta-based ChoiceOne Financial Services Inc. Approval of the deal came May 14 from the Federal Reserve Bank of Chicago. Community Shores shareholders vote June 17 on the deal, which should close in the third quarter. ChoiceOne also has completed the integration of ChoiceOne Bank with Lakestone Bank & Trust following the 2019 acquisition of Lapeer-based County Bank Corp. in an $89 million deal.

EXPANSION

n Kentwood-based Packaging Compliance Labs LLC is investing $2.57 million to expand its

headquarters. The medical device packaging, engineering and testing firm was awarded a $135,000 Jobs Ready Michigan grant from the Michigan Strategic Fund for the project, which is expected to create 27 high-wage jobs. The company qualified for the performance-based grant because of its plan to train and develop employees to put them in a position for upward mobility, according to a statement. The company specializes in assisting global medical device manufacturers in speeding new medical devices to market while maintaining regulatory compliance to FDA and international requirements. n Ann Arbor-based C3 Industries LLC opened a marijuana dispensary on May 11 in Newaygo County at 262 South Maple St., commonly known as M-37, in Grant. The company expected to start selling recreational cannabis products on May 22 at the High Profile Cannabis branded store. C3 Industries CEO Ankur Rungta called Grant “an ideal location” along a major north-south road near Grand Rapids, which is not expected to allow recreational sales until next year. The closest recreational marijuana dispensaries in the region are located in White Cloud, Lowell, Douglas and Muskegon.

HEALTH CARE

n The Center for Physical Rehabilitation and Therapy plans to open a new clinic June 1 on Georgetown Center Drive in Jenison. The clinic will provide outpatient physical therapy services, including specialties in orthopedic and sports medicine care and have a dedicated pediatric area. The 2,200 square-foot clinic is in the same building as the new Western Michigan Pediatrics office. First Companies Inc. served as the general contractor for the project. Rebekah VanZegeren will serve as the clinic’s manager. The Center has three clinics in Grand Rapids, plus offices in Wyoming, Belmont, Walker, Kentwood and Greenville. n Cedar Springs Dental broke ground this month on a new 3,000-square-foot office to replace an existing location in Cedar Springs. The new office is expected to open after the turn of the new year. Grand Rapids-based First Companies will manage construction. Grand Rapids-based Dixon Architecture is the architect. n Ed Postma was named interim president of Exalta Health in Grand Rapids. A member of the Exalta Health Board of Directors and a former chair, he replaces Dan Takens, who resigned this month for personal reasons. The Exalta Health board has begun searching for a new president. The nonprofit Exalta Health provides health care to a wide variety of children, adults and seniors in West Michigan, regardless of their employment, health insurance and other financial factors. In 2019, Exalta Health served 1,099 medical patients, 1,210 dental patients and provided more than 9,000 total services.

ENERGY

n Holland-based Jolt Energy Storage Technologies LLC has received $250,000 to further advance its utility-scale energy storage solutions. The grant funding was awarded via GCxN, a program commonly known as Shell GameChanger operated in partnership with the U.S. Department of Energy’s National Renewable Energy Laboratory and Shell Global. The selective accelerator program aims to help push forward the commercialization of clean energy technologies and reduce investment risk for recipients. Jolt’s technology for energy storage helps to address a key barrier in the widespread adoption of renewable energy, according to co-founder Jack Johnson, who characterizes the company’s innovation as “a true game changer” for the industry. The funding comes on top of a $200,000 Department of Energy grant the company received last August. Jolt is a spin-off of Michigan State University’s Bioeconomy Institute. n Jackson-based Consumers Energy — in partnership with Google and energy management firm Uplight — is giving away 100,000 Nest thermostats to customers in an effort to help them conserve energy during the COVID-19 pandemic. The smart thermostats, which retail for $169, give households more control over their energy usage and can help the utility shift demand during different times of the day. Residential electric and natural gas customers with central air conditioning are eligible for the upgrade, which is available through July. Visit www.mibiz.com

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