Manufacturing

Sight Machine hires 6 at Ann Arbor’s Maker Works

By Newsroom

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January 29, 2014

The team behind Sight Machine saw an opportunity when it noticed that most cutting edge manufacturing inspection technology ran on 1990s-era software. The Ann Arbor-based startup, which calls Maker Works home, decided to bring that software up to date (and speed) with its new inspection technology. "We wanted to make a product that filled the inspection service but took advantage of modern software," says Nathan Oostendrop, chief product officer of Sight Machine. The 3-year-old company began selling its first products a year ago. That technology could do everything from measure tool integrity to whether a certain finish was added to a product as it rumbled down the line. "As we have done more we have solidified how we do things," Oostendrop says. That experience has allowed Sight Machine to add six new employees. The new positions include graphic design, product management and software developers. The firm currently employs 15 people. Sight Machine has focused on manufacturing in the automotive sector but its leadership is looking to expand its reach in 2014. "I'd like to branch out beyond automotive, like medical devices or alternative energy," Oostendrop says. Source: Nathan Oostendrop, chief product officer of Sight Machine Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Latest in Manufacturing

Clean-tech startup picoSpray lines up potential customers

By Newsroom

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Economic Development

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December 11, 2013

Clean-tech startup picoSpray is putting together a lengthy list of customers for its small-engine technology and is well on its way to proving the viability of its concept. The Ann Arbor-based start-up's technology is basically a low-cost electronic fuel injection system for small engines. The product will help make small engines (think lawn mowers or chainsaws or go-carts) more energy efficient and help reduce their emissions. Check out a video on the technology here. The technology can reduce fuel consumption by 10-15 percent, depending on the type of engine, calibration, and the speed it runs at. "For different customers there are different valuations," says Lihang Nong, founder of picoSpray. He adds that picoSpray has already proven the concept behind its technology to one large manufacturer of small engines. He declined to identify the firm. He did say that his firm continues to test its technology in 2014 and is lining up potential customers. The startup is one year away from commercializing its technology. It is currently working to raise some seed capital to help push the commercialization process forward faster. "We're in the process of raising a seed round in the area of $1 million," Nong says. "We plan to prove the technology in 2014." Nong and his team of seven people are all recent engineering graduates of the University of Michigan. They started working on picoSpray at a business plan competition. It eventually moved into the TechArb, a startup incubator for U-M students in downtown Ann Arbor, and landed a microloan from the Michigan Microloan Fund last year. It is now working independently of the University of Michigan. Source: Lihang Nong, founder of picoSpray Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Software sales help propel Caelynx growth

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Economic Development

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November 13, 2013

Caelynx has grown its revenue at least 20 percent each year since it opened in 2005. Back then the engineering firm operated out of the founder’s house. Now it has $3 million in sales and a staff of 23 employees and the occasional intern. It has hired one person over the last year (a sales and marketing professional) and is looking to hire two mechanical engineers to keep its revenue growth in the double-digits. "It's amazing that we have been able to keep that up," says Hans Steiner, director of business development for Caelynx. The Ann Arbor-based firm specializes in engineering software to provide consulting services. Although the consulting services still make up the core of the business, Caelynx has found a lot of room to grow in selling the software platforms it employs. Software sales accounted for zero revenue two years ago. Now it's 25 percent of the company's bottom line and could reach 50 percent over the next year. "That's really taking off," Steiner says. "It has become a bigger and bigger part of our revenue." Caelynx recently was named as one of Ann Arbor SPARK's FastTrack companies, which means it has had revenue of at least $100,000 in 2009, with a verified annual growth of 20 percent for the following three years. It received the five-year FastTrack award for its continued growth. Source: Hans Steiner, director of business development for Caelynx Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

RheTech adds staff as it expands Whitmore Lake facility

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Economic Development

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November 6, 2013

RheTech is riding the wave of a growing economy and a resurgent automotive industry. The Whitmore Lake-based plastics firm has hired a number of new employees in operations, accounting and customer service. A company spokesman described the number of new hires as “less than 15” but did say it now employs 200 people and a few interns companywide. "Business is really good," says Kevin Seitz, vice president of sales & marketing for RheTech. "We have been growing." Seitz says the company’s growth is being spurred by a combination of a rebounding economy and automotive industry, along with new sales of the firm’s newest product, RheVision. The green product is a fiber-reinforced polypropylene that replaces traditional minerals with renewable bio waste that are traditionally burned or buried. RheTech has production facilities across the U.S. and two plants at Ann Arbor and Fowlerville. The 44-year-old company has added warehouse space and plant capacity between those two Michigan-based facilities to meet the rising demand for its products. "We're optimistic about the future," Seitz says. Source: Kevin Seitz, vice president of sales & marketing for RheTech Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Ann Arbor software start-up Coherix adds 5 new employees

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Economic Development

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October 9, 2013

Coherix is finding its niche in Asia, helping more manufacturers on that side of the world streamline their production capability. The Ann Arbor-based business is a supplier of high-speed, high-definition 3D measurement and inspection solutions. It creates software designed to improve the management of manufacturing processes. Its high-tech optical-based measurement and inspection products help find efficiencies in the automotive and semiconductor industries. The 9-year-old company is finding a lot of demand for its technology with manufacturers of semi-conductors and other electronics. It has also recently inked a deal to do a joint venture in China, which the company expects to become the its biggest geographic market in the near future. This growth has allowed the company to hire five more people in Ann Arbor. It now employs 50 people worldwide and expects to keep growing. "Next year will be huge," says Dwight Carlson, chairman & CEO of Coherix. "We have a big customer we just finished a three-year production contract with." Carlson explains that the client, whom he declined to name, has part of Coherix's technology imbedded in its product. That will produce a handsome royalty for Coherix when its begins making sales next year. Source: Dwight Carlson, chairman & CEO of Coherix Writer: Jon Zemke

Control Gaging begins work on new HQ in Ann Arbor

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Economic Development

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October 9, 2013

Ground has broken for the new headquarters for Control Gaging in Ann Arbor. The investment is expected to help the 41-year-old company take advantage of the growing manufacturing sector. The Ann Arbor-based company engineer, design and manufacture precision gauges for machine tools. It got hit hard in the recent recession but found a way to survive while many of its peers went under. Since then Control Gaging's revenue is up 250 percent. "There was a lot of demand pent up when that ended," says David Hayes, president of Control Gaging. The new facility will measure in at 24,500 square feet. It will allow for more flexibility in the manufacturing process. "Our principal facility isn’t set up for lean manufacturing," Hayes says. The new production plant will also have a number of green features, including green space for employees to relax in, a bike path around the facility and more than 200 trees on site. Hayes expects Control Gaging to move into its new home on July 1st of next year. Control Gaging currently employs 33 people. It has hired two more employees in the last year that specializes in machining and shipping & receiving. Source: David Hayes, president of Control Gaging Writer: Jon Zemke

MC3 turns key manufacturing certification into jobs

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Economic Development

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June 26, 2013

A new certification looks like it will become a key driver for growth for MC3. The Ann Arbor-based company received the ISO Certification for Medical Device Assembly earlier this month. That certification has opened up a large door for growth for the firm, which has hired four new people to support the expected increase in business. "We were not able to make devices that are eligible for human use," says Scott Merz, president of MC3. "Previously we were limited to manufacturing prototypes for pre-clinical testing. It's a big step and opens up a lot of doors for us." MC3, short for Michigan Critical Care Consultants, got its start in 1991 as a University of Michigan spin-out developing blood pump technology. It still does its own technology development but the bulk of the business focuses on helping other bio-tech start-ups grow into second-stage firms. The new manufacturing certification is expected to help facilitate more business because those sorts of clients can now depend on MC3 to provide more comprehensive services. It also opens the door to larger firms that wants to take advantage of MC3's new certification and its other services, such as expanded laboratory testing of devices. "We are getting interest from major companies to develop processes to test the compatibility of their devices to meet the more stringent FDA requirements," Merz says. MC3 currently employs a staff of 18 employees and two interns. It has hired five people over the last year. Source: Scott Merz, president of MC3 Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Hines Industries hires 11, including 2 former interns

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Economic Development

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June 26, 2013

Automotive suppliers have felt the ups and down of the economy as much as any firm. Hines Industries can attest to that as the manufacturer is growing with the rebounding economy. The Ann Arbor-based firm has watched its revenue jump 40 percent over the last year and expects to do it again this year. It has hired 11 people, including two of its former interns. The 33-year-old company now has a staff of 40 employees and one intern. "Our automotive orders are up a lot," says Dawn Hines, CEO of Hines Industries. "The economic health of the country is improving. I think it's a general improvement in the economy and improvement in the automotive industry specifically." Hines Industries specializes in the design and manufacture of balancing equipment with a goal of improving efficiency of manufacturing processes. It offers standard dynamic balancing machine models and specialized balanced configurations for the automotive industry. Hines is optimistic about her company's continued improved prospects because its customers are actively buying and indicating they want more. "We have a huge backlog," Hines says. "A lot of our customers are saying they are going to put more orders in." Source: Dawn Hines, CEO of Hines Industries Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Current Motor Co. finds success in fleet electric scooter sales

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Economic Development

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May 22, 2013

Current Motor Co's business plan has focused on expanding its sales of electric scooters into South America, where the vehicles are popular. That plan is starting to gain traction this summer with the beginning of the company's first fleet sales. The Ann Arbor-based start-up manufactures an electric scooter that provides the same sort of mobility and capability as regular gas-powered scooters, but with a much smaller carbon footprint. Many of the two-stroke gas engines of the millions of scooters in South American countries like Brazil produce a lot of air pollution. That isn't an issue with Current Motor Co's electric scooters and solar-power charging stations. "It's actually a very practical fleet addition," says Lauren Flanagan, executive chair & interim CEO of Current Motor Co. "It's very popular, particularly with mobile, solar-powered charging stations." Flanagan says the company is in the midst of completing its first fleet sales in Brazil this spring and expects to complete more by the end of the year. It is also looking at making similar fleet sales in the U.S. as it attempts to hit the break-even point of selling 500 scooters within the next year. "We have a very lean model so we think that is possible," Flanagan says. Current Motor Co and its team of a dozen people closed on a Series A round of financing worth $2.4 million last year. Flanagan expects to begin fundraising for a Series B round worth somewhere between $5 million and $10 million early next year. The company is currently looking to hire a director of fleet sales and a couple of software engineers to develop mobile apps for its scooters. Source: Lauren Flanagan, executive chair & interim CEO of Current Motor Co Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

American Broach & Machine Co. invests $1.5M in Ypsilanti building

By Tanya Muzumdar

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Development News

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January 23, 2013

To keep up with production and R&D demands, American Broach & Machine Co., a maker of broaches (metal cutting tools), broaching machines, and CNC and manual broach tool sharpening machines for the auto, aircraft, train, off-road vehicle, defense, and other industries, recently purchased a new 42,880 sq. ft. building at 535 S. Mansfield St. in Ypsilanti. Adjacent to its 23,200 sq. ft. current location at 575 S. Mansfield St., the acquisition means a near-tripling of the company's current total square footage. American Broach & Machine Co. has been in business since 1919, and once employed Rosie the Riveter (Geraldine Hoff Doyle) as a broaching machine operator in its former Ann Arbor factory. The company will keep its existing building and move about half of its employees and equipment to the new location, beginning in June. The move should be completed by September, says President Ken Nemec. "We're going to be making broach tools in that plant and working on R&D projects for the broach and metal-cutting business. We've got three or four irons in the fire of things we'd like to develop," Nemec says. The purchase price was just under $1 million, and the company will invest another $500,000 in upgrades prior to moving in, according to Nemec. Upgrades include more efficient heating, ventilation and cooling systems systems, and high-efficiency lights using one-third the electricity of the current fixtures. The company has 48 employees and has been consistently hiring, adding a new position every 1-2 months, Nemec says. The average salary is over $50,000 per year. There are 4-5 job openings right now. "We're looking for unskilled trainee workers that have an aptitude for becoming a toolmaker. Over the next five years I anticipate adding probably 30 positions like that, " Nemec says, adding, "Within five years, maximum ten, we'd like to have 100 employees." Source: Ken Nemec, president, American Broach & Machine Co. Writer: Tanya Muzumdar