November 20, 2009
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Innovation & Job News
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MEDC approves brownfield projects, expected to create 1,500 jobs
Source: metromode, 10/29/2009
The Michigan Economic Development Corporation approved 10 brownfield projects that are expected to create 1,500 jobs and help seven companies invest $254 million.

The projects include the normal automotive-centric projects and an IT center development in Detroit. The idea behind the tax credits is to turn some of the state's brown fields into viable commercial spaces available for investment and job creation. Michigan's definition of brown fields ranges from polluted land to obsolete buildings.

The Metro Detroit projects include:

  • Ohio Module Manufacturing Co. taking over ArvinMeritor's Southwest Detroit plant, saving 200 jobs that manufacture complete chassis modules for the Jeep Wrangler. The Toledo-based company plans to invest $21.4 million into the facility.
  • Detroit-based Strategic Staffing Solutions plans to spend $7.3 million to open a new IT center in the Motor City. That deal is expected to create 437 jobs.  
  • Williams International expects to invest $12 million to update its Commerce Township facility so it can build small gas turbine engines for military, industrial, and commercial aircraft applications
  • The transformation of the old Ford Wixom plant received a big boost with $137 million in tax credits over 20 years. Clairvoyant Energy Solar Panel Manufacturing and Xtreme Power plan to turn the facility into an alternative energy manufacturing base that will create 3,250 jobs as part of an $856 million project.

Source: Michigan Economic Development Corp
Writer: Jon Zemke
Detroit  
Feds, DTE Energy plan to invest $168M into Metro Detroit Smart Grid
Source: metromode, 10/29/2009
Metro Detroit's smart grid is getting smarter now that it's about to receive a major investment.

The federal government has pledged $84 million in stimulus dollars to the project and DTE Energy and its partners plan to match that number.

"This is just for next year and 2011," says Scott Simons, a spokesman for DTE Energy.

The money will go toward DTE's SmartCurrents program, which will install advanced meters to allow the Detroit-based firm's employees to read and control them remotely. These meters are already being installed in Bloomfield Township and Grosse Ile.

About 700,000 of these meters will be installed over the next two years. The plan is to eventually change them all out over the next five years.

Source: Scott Simons, spokesman for DTE Energy
Writer: Jon Zemke
Detroit  
Metro Detroit, Michigan score high in biotech VC rankings
Source: metromode, 10/29/2009
Metro Detroit and Michigan are hitting the high end of the rankings when it comes to investment in biotech, according to the latest BioEnterprise Midwest Health Care Venture Investment Report.

The Detroit-Ann Arbor region ranked second in Midwestern metro areas for biotech investment, with $70.8 million in investment from eight deals. That ranking is up from fifth in 2008 and sixth in 2007. The total investment has remained consistently between $64.9 million and 74 million while the number of annual deals also remained steady between five and eight.

Michigan ranked third in the Midwestern states region with $88.7 million over 11 deals. Minnesota and Ohio took the top two spots with more than $130 million each. The Great Lakes State ranked fourth last year and seventh in 2007 and 2006. Michigan's annual amount invested climbed from $38.9 million in 2006 to a high of $90 million last year.

Midwest health care startups reported $593 million in total investments across 140 companies through the first three quarters of 2009. Minnesota and Indiana lead the way in the rankings, with Michigan, Indiana, and Missouri making up the second tier.

Source: BioEnterprise
Writer: Jon Zemke
Kuka Systems opens U.S. research center in Sterling Heights
Source: metromode, 10/29/2009
KUKA Systems is expanding its North American presence in Metro Detroit by creating a research center next to its Sterling Heights headquarters.

The 65,000-square-foot facility houses between 4-14 people, depending on the project. The headquarters next door houses another 350. The new research center will be devoted to both automotive and alternative energy industry projects.

"It's primarily for laser development (in those sectors) but we have other projects," says Mike LaRose, vice president and general manager of KUKA Systems North America.

The research center has four projects going right now, including some solar- and wind-generating technologies. Much of that work used to be done in Germany, but executives decided it was best to house that expertise in North America, closer to its emerging markets.

"We've seen quite a bit of interest in solar," LaRose says.

Source: Mike LaRose, vice president and general manager of KUKA Systems North America
Writer: Jon Zemke
Ford, U-M work on accelerating hybrid development
Source: metromode, 10/29/2009
Researchers from the University of Michigan and Ford are working together to turn your hybrid car into a math equation.

The idea is to find the optimal levels for fuel economy, parts lifespan, comfort, and overall driveability for hybrid power systems, a technology that is still in its infancy.

"Once we have developed a mathematical model of the power system and what Ford engineers are trying to optimize, we can tell them what the optimal efficiency is," says Jessy Grizzle, a professor of electrical engineering and computer science at the University of Michigan who is working on the project with U-M PhD student Daniel Opila.

The bottom line is in trying to figure out the best way to meet a customer's needs and increase satisfaction level. This includes maximizing fuel efficiency, but not at the expense of wearing out the drive train or other parts.

Source: Jessy Grizzle, professor of electrical engineering and computer science at the University of Michigan
Writer: Jon Zemke
Green Michigan conference focuses on sustainable options
Source: metromode, 10/29/2009
New and emerging sustainable technologies will be the focus of Automation Alley's latest conference - Green Michigan: Now and Tomorrow.

"It's an overview of where we are in regards to green technology and where we can go," says Katie Mullin, communications administrator for Automation Alley.

One of the main focuses will be on how to best take advantage of the federal block grants aimed at incorporating sustainable-oriented know-how into the local place. The speakers will also discuss the various ways that green tech is being used throughout the region, and where the future of energy is headed in Michigan.

The conference will be held on Nov. 10 at Automation Alley's Troy headquarters. Michele Soderstrom, market analyst at NextEnergy, and Conan Smith, executive director of the Michigan Suburbs Alliance, will be the marquee speakers at the event.

The seminar will be held between 8-10 a.m. Registration cost ranges from $20 to $50. For information, call (800) 427-5100 or info@automationalley.com.

Source: Katie Mullin, communications administrator for Automation Alley
Writer: Jon Zemke
 
GREEN SPACE: SE MI Sustainable Business Forum expands to other sectors
Source: metromode, 10/29/2009
The Southeast Michigan Sustainable Business Forum (SMSBF) knows how to help its members green their business practices -- from one-person consulting firms to General Motors. In the last year, it's expanded its purview to include outreach to the education sector, government agencies, and non-profits. "Businesses can't be successful unless they are engaging with the entire group of stakeholders that support businesses," says CEO Bill Stough.

Approximately 30 to 50 members regularly attend SMSBF's monthly meetings, which typically focus on a single topic such as food supply, green retail, construction materials, and alternative energy resources.

As the economy changes, so has SMSBF's membership roster. "As more and more individuals get laid off, a lot of these mid-career and early in their career, they are looking for what's next," says Stough. "There are a lot more individuals participating in the business forum (in order to) understand what sustainable business is and how it can add value in job searches."

SMSBF started up in 2001 with a seed grant from the EPA. It ran for two years as a program of the East Michigan Environmental Action Council before spinning off as its own non-profit entity. Anyone doing business in Southeast Michigan is eligible for membership once a commitment is made to the organization's vision and mission statement.

In April of 2010, SMSBF will team up with its sister organizations around Michigan to hold a statewide sustainable business forum in Traverse City. Its next regular meeting will be held on November 19 at the University of Michigan-Dearborn and will focus on the efforts of General Motors to meet its ambitious goal of zero-waste to landfills.

Source: Bill Stough, SMSBF

Writer: Kelli B. Kavanaugh
LA-based Paradise Valley Investment Group invests in Detroit housing
Source: Model D, 10/29/2009
Investors from LA are finding a couple of different ways to invest their money in Detroit.

Excerpt:

West Coast money is starting to have a little impact on tackling Detroit's blight problem, turning liabilities into assets.

The Paradise Valley Investment Group has rehabbed about 20 foreclosed homes in the Motor City, turning them into viable rental housing. That also translates into homes for 70 people and thousands of dollars the city doesn't have to spend on demolition. Oh, and there are the bakers' dozen jobs created to rebuild these homes, along with another 10 jobs to make these home energy efficient/environmentally friendly.

"Our sole focus is in Detroit," says Robin Scovill, CEO of Paradise Valley Investment Group and a resident of Los Angeles. "That's where we're investing and it's the only place we're investing."

Read the rest of the story here.
Detroit  
Ann Arbor entrepreneurial community wins with $300M sale of HandyLab
Source: Concentrate, 10/29/2009
Ann Arbor start-up HandyLab hit it big in the up-and-coming entrepreneurship game.

Excerpt:

The sale of Ann Arbor-based HandyLab is the story that entrepreneurial dreams are made of.

And in this case they came true.

A published report on AnnArbor.com puts the price Becton-Dickinson paid for HandyLab at $300 million (a BD spokeswoman declined to confirm the price), and if that's true it's a very big start-up win for the region. The type that reinforces, if not proves, the idea that entrepreneurs can hit it Silicon Valley-big in Ann Arbor.

"This kind of success demonstrates that you can do this very well and allows local venture funds to leverage more capital," says Tom Kinnear, executive director of the Zell Lurie Institute for Entrepreneurial Studies at the University of Michigan's Ross School of Business.


Read the rest of the story here.
U-M scores $6.8M in federal stem cell research grants
Source: Concentrate, 10/29/2009
Increasing amounts of money are going toward stem cell research at the University of Michigan.

Excerpt:

Thirteen is the lucky number for stem cell research at the University of Michigan. That's how many federal grants the university recently received for stem cell research, totaling $6.8 million in federal stimulus cash.

"That money will certainly accelerate stem cell research at the University of Michigan," says Sean Morrison, director of the University of Michigan Center for Stem Cell Biology. "It will go towards all sorts of stem cell research at the University of Michigan."

Read the rest of the story here.
123.net acquires ZING Networks, plans to hire
Source: metromode, 10/22/2009
Dan Irvin started 123.net in 1993 as a way to work from home and spend more time with his young family. Today the Southfield-based firm is becoming a family of companies, now that it has bought ZING Networks as part of its growth plan.

123.net (Irvin choose the name because it was easy to remember) is a communications service provider. It wanted ZING Networks, a wireless Internet service provider, because it is the sole 4G WiMAX network provider in Metro Detroit.

"It gives us another path to our customers," Irvin says. "We see it as a technology that has matured over the last 4-5 years."

Southfield-based ZING Networks' four employees will be folded into 123.net's operations, which already employ a dozen people, a summer intern and about half a dozen independent contractors. 123.net hired five engineers within the last year.

"I expect we'll double again in the next year," Irvin says.

The company has been on a tear in recent years and expects it to continue. It averages 30-40 percent annual revenue growth and has acquired more than 700 miles of fiber optics across the state. It has scaled up to the point where it doesn't have a problem competing here, or even on the West Coast.

"The last couple of years have been really exciting because the price points, size of our business, and demand for the Internet have made us very competitive," Irvin says. "We are big enough to compete with anyone around here."

Source: Dan Irvin, owner of 123.net
Writer: Jon Zemke
New DOD contract bolsters Waltonen Engineering's growth
Source: metromode, 10/22/2009
More engineers are coming to Warren these days, and part of that is thanks to Waltonen Engineering.

The Warren-based firm, founded in 1957, recently won a Indefinite Delivery/Indefinite Quantity contract with the United States Army's Tank Automotive Research, Development and Engineering Center in Warren. That will allow it to bid on more military contracts, giving it more opportunity for growth and hiring within the next five years.

The company has been on a bit of a hiring tear lately. It has beefed up its staff of more than 100 people by 40 percent in the last year and also has a few people at an office in Germany. That growth is expected to continue in a number of sectors as new business warrants it.

Waltonen Engineering has diversified its client portfolio to include projects in the automotive, defense, aerospace, and medical device sectors.

"Our growth has been across all of these areas," says Thomas Laboda, director of business for Waltonen Engineering.

Source: Thomas Laboda, director of business for Waltonen Engineering
Writer: Jon Zemke
Ford, Wayne State partner for MBA entrepreneur fellowship
Source: metromode, 10/22/2009
Wayne State University and Ford are teaming up to offer a once-in-a-graduating-class opportunity by offering a year-long paid fellowship with Dearborn's biggest automaker.

Ford will allow one Wayne State MBA student or graduate to spend a year at its Global Technologies subsidiary as part of the university's Adams Entrepreneurship Fellowship Program. There the student will work with Ford's intellectual property to see what can be commercialized, spun off, or licensed.

"It provides a really unique opportunity for one of the outstanding MBA graduates to participate in a robust entrepreneurial experience," says Terry Cross, executive in residence at Wayne State University's School of Business.

Funding for the fellowship will be provided by the Community Foundation for Southeast Michigan.

Source: Terry Cross, executive in residence at Wayne State University's School of Business
Writer: Jon Zemke
Detroit set to host 2010 World Stem Cell Summit
Source: metromode, 10/22/2009
Michigan's Big Three in higher education will host the 2010 World Stem Cell Summit in Detroit next fall.

Michigan's University Research Corridor (University of Michigan, Michigan State University and Wayne State University) brought the event here. The idea is to help spur more investment and innovation in this growing sector of the state's economy.

"It's very important for our state to be recognized on a national level," says Eva Feldman, a professor of neurology at the University of Michigan. "We can be at the forefront of stem cell research, thanks to the passage of Proposal 2."

Feldman also quarterbacks the stem cell research efforts at U-M. She says Michigan is starting to be recognized as an "emerging power" in this game now that Proposal 2 legalized embryonic stem cell research in the state.

The summit, organized by the non-profit Genetics Policy Institute, is expected to attract more than 1,200 stakeholders in the stem cell industry from more than 30 countries. The idea is to foster collaborations, economic development, technology transfer, commercialization, private investment, philanthropy, and just good old networking. Previous host cities include Houston, Boston, Baltimore, and Madison, Wis.

The conference will take place Oct. 4-6, 2010, at the Renaissance Center in downtown Detroit.

Source: Eva Feldman, a professor of neurology at the University of Michigan
Writer: Jon Zemke
Novi's Amistee hires 4, plans to hire 5 more
Source: metromode, 10/22/2009
Steve Dickinson and Mike McCowan didn't have to come back to Metro Detroit, but they did, and consequently created a thriving small business in Novi.

The Michigan State University graduates had jobs in Chicago and Connecticut when they came back to start Amistee six years ago. Today the duct-cleaning firm has taken advantage of a market both saw as under served in Michigan, a place the Livonia native longed to return to.

"We both love Detroit," says Dickinson, co-owner of Amistee, which is short for: A Mike and Steve corporation.

The company now employs 10 people after hiring four more this year. It plans to hire another five next year as it capitalizes on its growing sales. Dickinson says sales have doubled in the last year, mostly thanks to the company's customer service.

"It's pretty basic," Dickinson says. "You treat people the way you want to be treated."

Source: Steve Dickinson, co-owner of Amistee
Writer: Jon Zemke
Novi  
U-M Dearborn study spotlights best cities for entrepreneurs
Source: metromode, 10/22/2009
How entrepreneurial-minded is your city? The University of Michigan-Dearborn has a pretty good idea.

The university's iLabs recently released its 3rd annual eCities study, which assesses a municipality's ability to attract and retain entrepreneurial firms. The top performers in Metro Detroit this year are Rochester Hills, Sterling Heights, and Wixom. Dundee, Auburn Hills, Southfield, and Troy (which were named last year) were recognized for their continuing efforts to support entrepreneurship.

"The underlying theme is how they are leveraging existing assets and resources for their macro economic climate," says Tim Davis, director of U-M Dearborn's iLabs. "They're taking what they already have and repositioning it for an entrepreneurial effort."

The study looked at 31 different factors, including tax rate, the size of the commercial tax base, and educational level, among others. The researchers followed up the examination with interviews with local stakeholders.

Source: Tim Davis, director of University of Michigan-Dearborn's iLabs
Writer: Jon Zemke
GREEN SPACE: Garden plastics find new life with Plymouth-based Peace, Love & Planet
Source: metromode, 10/22/2009
Gardening is supposed to be a feel-good activity -- healthy and green and all that jazz. What bothered Gina Adams-Levy about it was all the plastic debris she was left with after planting. Flats and containers were piling up, so she looked into options for recycling them -- and found none. She took matters into her own hands and started Peace, Love & Planet, (PLP) a non-profit dedicated to recycling garden plastic not recycled curbside and providing environmental education throughout Metro Detroit.

Two years ago, Adams-Levy, who is Plymouth-based, began her efforts at the Northville Farmers Market; this year PLP collects gardening plastic at five nurseries, two farmers markets, and a wholesale landscaper. She collected just over 7,000 pounds in total; 6,700 were recycled in-state at East Jordan Plastics and the rest was reused by farmers. The sale of the plastic netted just $465, but Adams-Levy says her not-for-profit status allows for other revenue streams, such as grants, to support operations.

PLP travels to various schools to teach kids about not just the importance of recycling, but the impact of consumption in general. "Not only am I concerned about the finite space we have here in Michigan for all of our waste and the nonrenewable resources that we are consuming with all these plastics, but in curbing our petroleum appetite, and reducing and reusing as much as possible," says Adams-Levy.

She will be conducting a series of workshops designed for children and their parents this fall and plans to continue to ramp up both her recycling and educational efforts in the coming year. "It's a hot topic, being green," she says. "But it's not a fad. (We) really need to take it seriously."

Source: Gina Adams-Levy, Peace, Love & Planet
Writer: Kelli B. Kavanaugh
'Stick It In Detroit' finds home filming in the city
Source: Model D, 10/22/2009
No, the crew filming the locally grown independent film Stick It In Detroit didn't tell the Motor City where to stick it.

Excerpt:

The creators behind the new movie Stick It In Detroit weren't stuck in the Motor City but were glad to be here.

"There is no way we could have possibly made this film anywhere else," says Robert Phelps, writer, director and actor in Stick It In Detroit.

Read the rest of the story here.
Detroit  
U-M students spin out Shepherd Intelligent Systems
Source: Concentrate, 10/22/2009
The eggheads at the University of Michigan are spinning out another start-up from technology riding in Ann Arbor.

Excerpt:

How Shepherd Intelligent Systems got its start is the way that University of Michigan officials anticipate a lot of future start-ups will launch.

The 5-month-old U-M spin-off began as the project of U-M engineering student Jahan Khanna. He was creating software that gives riders the real-time position of university buses and realized it had broad commercial potential. So Jahan teamed up with U-M MBA student Adrian Fortino to start the firm, which now employs four people downtown.

Read the rest of the story here.
Wolverine Venture Fund invests in Direct Flow Medical
Source: Concentrate, 10/22/2009
The University of Michigan's student-run VC fund ventured all the way out to California to make its latest investment.

Excerpt:

The University of Michigan's Wolverine Venture Fund has struck again, this time making an investment in a California-based company.

The VC fund, run by MBA students at the University of Michigan, has invested in Direct Flow Medical, an emerging medical device company developing a catheter-based, percutaneous-delivered prosthetic aortic valve. This investment is part of Direct Flow Medical's Series C financing, which has raised $40 million from the likes of EDF Ventures, New Leaf Venture Partners, and Spray Venture Partners.

Read the rest of the story here.