Economic Development

Coverage of projects, big and small, and the people who create them, which promote the economic health of a community, including manufacturing, retail, office, and hospitality developments.

Ann Arbor’s secret auto lab

Shhhh. It's a secret. There's a lab in A2, the only Federal testing facility in the country, that determines what a car's m.p.g. rating really is. Or so the Freep tells us. There's no telling how many reporters they lost getting this information. Excerpt: "The MPG audits performed in Ann Arbor are increasingly important with several companies forced to restate inaccurate fuel economy figures. Hyundai, Kia, Ford, Mercedes-Benz and BMW have had to revise their claims and some have sent compensation checks to owners. The accuracy police at the EPA have changed some of their testing, now auditing more aspects of each vehicle as a result of the misleading stickers. And the lab in Ann Arbor, which is the only federal lab to do fuel testing, continues to expand its overall." Read the rest here.

Latest in Economic Development
Thomson Reuters expands, to add 300 jobs over five years

The Michigan Economic Development Corporation (MEDC) approved a $2.4 million Michigan Business Development Programperformance-based grant for Thomson Reuters to grow its presence in the Ann Arbor area. Pittsfield Township to be exact. That supposedly means a few hundred new jobs. Excerpt: "Thomson Reuters worked with Ann Arbor SPARK to secure the MEDC incentives. Pittsfield Township will consider offering support of the project in the form of a property tax abatement, the release says." Read the rest of the press release reportage here.

How living wage requirements impact nonprofits

Ann Arbor's living wage ordinance comes under review in an evaluation of how living wage ordinances (ie. increases in minimum wage salaries) would impact their ability to execute their mission. NPQ weighs the pros and cons. Excerpt: "Increasingly, the sentiment among political leaders is that nonprofits may not always warrant the exemption. In some living wage ordinance structures, nonprofit organizations have an opportunity to demonstrate a need to be exempted from the wage increase. For example, in Ann Arbor, the Community Action Network applied for exemption from the local living wage ordinance, which the original ordinance permitted based on need. However, in granting the exemption from the ordinance, CAN had to submit a plan to demonstrate how it would come into compliance with the living wage rate (at that time, in 2012, $12.17 an hour for employers paying for health insurance, $13.57/hour for those not providing health insurance) in three years." Read the rest here.

Spreading awesomeness throughout Ann Arbor and Detroit

Check out these two philanthropic groups that are making Ann Arbor and Detroit (and points  in between) more awesome $1000 at a time. Excerpt: "The Awesome model is a simplified, smaller-scale version of traditional philanthropic foundations. Detroit and Ann Arbor’s trustees meet monthly to sort through anywhere from 10-30 proposals, funding whatever project best spreads “awesomeness” in their respective communities. “We don’t follow any rules,” said Ann Arbor Awesome Foundation dean Mark Maynard. “We don’t answer to a board. People make a choice as to where they give their personal money, and then they do it.” Read the rest here.

Vivergy software bridges sustainability and public health

A couple of tech entrepreneurs in Ann Arbor are working to bridge the gap between living a sustainable lifestyle and improving the public health with their new startup, Vivergy. Kevin Kononenko and Dom Parise's are releasing the digital platform this week. Vivergy enables individuals to score their impact on local health due to their energy consumption and air pollution. That way they can see if the tweak their everyday behavior they can see how it can have a real-world impact on lessening things, like childhood asthma. "Children in Ann Arbor inhale on average seven cigarettes each year," Kononenko says. "That is the equivalent of living with a smoker for three months." Kononenko and Parise were inspired by the frustrating conventional wisdom that comes with sustainability -ie. the problems seem too enormous, things are slow to change, and that the positive actions of one person are often negligible. "It always feels very negative, overwhelming, and sad," Kononenko says. "I wanted to do something about it that encourages people to think about it in a different way." Vivergy is launching this week and the two partners are planning to focus on generating local usership at first. However, the platform can be used anywhere in the world. Source: Kevin Kononenko and Dom Parise, co-founders of Vivergy Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Human Element creates 3 jobs as it hits double-digit growth

Human Element has grown in a number of ways over the last year. It has watched its revenue spike by double-digits, its staff is on the rise, and its office expand by a few thousand square feet. The downtown Ann Arbor-based e-commerce company (it specializes in the Magento e-commerce platform) has watched its revenue jump by 40 percent since 2011. That has allowed it to hire three people, a software engineer and project manager over the last year, and it's looking to add a software developer now to its team of 13 employees and six independent contractors. "Growing that quickly has its challenges," says Ben Lorenz, managing partner of Human Element. "We're targeting 30 percent growth right now. We feel that is a manageable way to grow the team." Which has prompted the 9-year-old company to expand its office. The company added 2,000 square feet earlier this year. Another addition of a few thousand square feet of office space seems like its in the card considering the company’s current growth curve. "If we can stay on track of our growth plan we will need more space next year," Lorenz says. He adds that a rebound in demand for e-commerce work, specifically the Magento platform, has driven the growth. Lorenz is quick to add that his company is controlling the growth because it takes a long timeline (typically closer to a year than just a few months) to get new hires up to speed with the rest of the team. Another factor is Ann Arbor SPARK giving a Phase 4 grant to Human Element last year. The $12,000 grant helped the company form some strategic planning for its growth so it can lessen the learning the curve to getting bigger. "SPARK has been helping us quite a bit," Lorenz says. Source: Ben Lorenz, managing partner of Human Element Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Spry Publishing almost doubles staff with acquisition

Ann Arbor-based Spry Publishing has acquired Farmington Hills-based The Word Baron, a move that nearly doubles Spry Publishing's staff. Spry Publishing is a health-and-wellness publisher and a member of the Edwards Brothers Malloy family of businesses. Most of Spry Publishing’s work is focused on the pharmaceutical industry. The Word Baron specializes in digital marketing, ranging from graphic design to building training manuals. "It (acquiring The Word Baron) expands our creative services that we can offer our clients," says Jeremy Sterling, director of sales & marketing for Spry Publishing. He adds the two firms have partnered on projects before and there is a good synergy between them thanks to how the services they provide complement each other so well. The Word Baron's three employees have moved into Spry Publishing’s offices in Ann Arbor, expanding the staff to eight employees. The Word Baron has a number of clients in the automotive industry. Sterling expects the combination of the two firms will allow them to offer a more comprehensive publishing and marketing package to their respective clients. "We should grow well across both of our businesses," Sterling says. Source: Jeremy Sterling, director of sales & marketing for Spry Publishing Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Mill Valley Park
Video Dam out, RiverUp!: The making of Mill Creek Park

A few years ago the city of Dexter decided to pull out its dam and redevelop its riverfront. The result has been a healthier Huron River and a near-downtown amenity that's enjoyed by both residents and businesses. 

Groovy Hopster Farm to feed craft brew industry with local, organic hops

Just when it seemed Michigan entrepreneurs had found every way to be involved in the regional craft brew movement, Louis Breskman found another: hops farming. The University of Michigan MBA already runs real estate and manufacturing businesses and was looking for a way to expand into agriculture that would be unique to Michigan. The answer was Groovy Hopster Farm. "Michigan has one of the most exciting craft brew industries in the nation, and I wanted to find a way to enter this growing market segment in a way that I could support the industry and not just be another competitor," Breskman says. "Ann Arbor itself has a successful micro brewing scene and it made sense for there to be a local source of hops so that the Ann Arbor breweries could produce a product that was truly unique to the area."   Breskman found that small local brewers have a need for new sources of hops, something his boutique hop farm, slated to produce its first harvest in the summer of 2015, could provide. He plans to grow varieties that are in demand in the local market, and remain flexible to continue to meet local brewers' needs.  "Our long term plans are to establish ourselves as an integral part of the supply chain to the local brewing industry," he says. "As a local farm we plan to be able to deliver hops to our local customers with a minimal carbon footprint." Groovy Hopster Farm will soon launch a Indigogo campaign to help with the business' startup costs. Breskman plans to hire two full-time employees to manage the farm and additional employees during their harvest. Source: Louis Breskman, Groovy Hopster Farm Writer: Natalie Burg

New Milan pharmacy extends a more personal touch

After opening the Saline Pharmacy three years ago, Ziad Ghamraoui started hearing that his brand of customer-focused pharmacy services were in demand elsewhere as well.  "A lot of doctors and patients were very happy with us, and a lot of Milan residents told us if we moved closer to Milan they'd give us more business," Ghamraoui says, "because we help bridge the gap in healthcare." Ghamraoui met that demand, opening Little Pharmacy in Milan about two weeks ago. Like the Saline Pharmacy, he plans to serve customers in a variety of ways, including carrying over-the-counter medications as cheaply as possible, helping those who struggle to meet their copays, allowing people to pay with store accounts when their cash flow is short and more.  "Brand names can be expensive," Ghamraoui he says. "We get them coupons so we can save them on their copays. We want to make sure people get their prescriptions and make sure they're on the road to health with no restrictions whatsoever." Little Pharmacy currently occupies about 1,600 square feet of a 2,500 square foot space on Dexter Rd. in Milan. Ghamraoui has hired two employees to manage the new business.  Source: Ziad Ghamraoui, Little Pharmacy Writer: Natalie Burg

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