Features

Hines Industries hires 5 engineers on 30% growth

The last two years have been pretty kind to Hines Industries. The Ann Arbor-based manufacturing tech firm’s revenue has spiked 30 percent in each of the last two years. That has enabled it to hire five new people (engineers) over the last year, expanding its staff to about 40 people. "We have had an increase in the automotive section," says Dawn Hines, CEO of Hines Industries. "That is because the automotive sector was ordering less in 2010 and 2011." Hines Industries makes balancing equipment for manufacturers. Its standard dynamic balancing machine models and specialized balanced configurations for the automotive industry that improves manufacturing process efficiency. Hines points out that her company has invested in its own operations, including a new IT system, an improved website, and a better customer communication systems. She credits the rebounding economy and surging auto industry with the recent growth spike, but expects it to level out to low-double-digit growth in the next couple of years. "We think we will be growing something like 15 percent per year," Hines says. "We expected to do more business with existing customers and more business internationally." Source: Dawn Hines, CEO of Hines Industries Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

OST grows Ann Arbor office, targets bigger growth in A2

OST went through a big growth spurt over the last year, and the Grand Rapids-based tech firm expects its Ann Arbor and Detroit offices to benefit from that growth over the next year. OST, AKA Open Systems Technologies, hired 50 people over the last 12 months, including two sales professionals in Ann Arbor. The local office staff, which also splits time at the Detroit office, now stands at 13 employees. "We have had a tremendous amount of growth across the entire organization," says Rob Kellner, principal of application development practice for OST. OST specializes in IT services, database security, and mobile application development for a number of large companies with a big presence in Michigan, such as ProQuest and Thomson Reuters.  "We have seen a 40-50 percent growth especially in application development and managed services," Kellner says. "Both of these particular areas have exploded." That's good news for the Tree Town and Motown offices. Although a vast majority of OST's new hires have been in Grand Rapids, Kellner expects the staffs in Ann Arbor and Detroit office to grow exponentially this year to keep up with the spiking demand for mobile apps and managed services. He also says OST is aggressively going after new business in southeast Michigan in 2014. "That's definitely an area that will see a big push for growth," Kellner says. Source: Rob Kellner, principal of application development practice for OST Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Eloquence Communications eyes Beta launch, partnerships

What was once Patient Provider Communications is now Eloquence Communications, and a number of new business options have come at the same time as the Ann Arbor-based firm’s new name. The health-care startup has developed a nurse-call system through an innovative healthcare communication technology. This platform is called Eloquence, which prompted the 5-year-old company to change its name to match it. Eloquence Communications has raised more than $2 million to develop this platform. It has recently completed the product-development phase, received an issued patent and has filed for two more. "We have a lot of options," says Lance Patak, CEO of Eloquence Communications. "And they are accumulating very quickly." Patak points out that a competitor in Eloquence Communications’ space was recently acquired, prompting a lot of attention to his firm. It is now exploring a variety of options from acquisitions to strategic partnership to Beta test sites. Patak expects to secure a Beta test site or two before the end of the summer. "We have two partners that are more than willing to provide a Beta site," Patak says. Eloquence Communications has hired three replacement employees over the last year and is in the process of making a fourth hire. Source: Lance Patak, CEO of Eloquence Communications Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Blue Heron Talent expands with international work

Blue Heron Talent has doubled its revenue over the last year and a major part of that growth is due to new business abroad. The Ann Arbor-based company specializes in c-suite level coaching, and all of its client had been domestic until this last year. That's when a longtime global client referred the firm to a few international colleagues. Today about 12 percent of the company’s revenue comes from foriegn-based clients. "That has been very exciting working with different cultures around the globe," says Barbara Allushuski, president & CEO of Blue Heron Talent. Blue Heron Talent helps executives maximize their strengths and minimize their weaknesses through coaching. The idea is to help these companies grow by helping their leadership teams grow as professionals. It services both executives in large corporations and entrepreneurs in new startups. "It's very in-demand because companies are growing again and companies what to be all they can be," Allushuski says. Blue Heron Talent has added a handful of coaches over the last year to help keep up with demand. Allushuski points out that finding the right fit for her company has become a challenge in the last year, specifically finding coaches with both academic and business backgrounds. "That continues to be the challenge," Allushuski says. "I can't find enough c-suite-level coaches with the right background." Source: Barbara Allushuski, president & CEO of Blue Heron Talent Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Java Hope Project focuses on helping chronically unemployed

The Java Hope Project has a hard nut to crack, helping chronically unemployed women become self-sufficient through entrepreneurship. The Ypsilanti-based non-profit helps women escape poverty through a 3-month training course that takes them from unemployment to running their own coffee stand that could gross as much as $100,000 annually. It sounds like a good idea on paper. Maybe even easy. It's anything but in reality. "I have to go back and do what the parents didn't teach them to do, like being self-sufficient and believing in themselves," says Brenda Moore, executive director of the Java Hope Project. The Java Hope Project has been working with women at Coalition on Temporary Shelter (COTS) in Detroit for the past year. The program has had 63 participants. So far three of them of stuck through it, built up professional skills and used them to land jobs. It's a step in a long process that Moore hopes to get a couple of them running their own coffee cart in the next year. "We have to make sure they have the wherewithal to manage the cart," Moore says. The program teaches the women, often single mothers, the need for professionalism in the workplace. It also teaches the basic of running a small business in the hope that entrepreneurship will help them break the cycle of poverty. The Java Hope Project has recently been approved to become an apprentice program by the U.S. Dept of Labor. Moore is exploring the option of partnering with a large local organization or two to grow its reach later this year. "I think the program will get better with that umbrella over it," Moore says. "It will strengthen the program." Source: Brenda Moore, executive director of the Java Hope Project Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Feature Story Lisa Kurek

OpEd: Federal R&D Funds Bridge the "Valley of Death" for Small Tech Companies

What comes first, the money or the product? Tech entrepreneurs are often caught in the catch-22 of needing funds to prove the worthiness of their products. BBCetc Managing Partner Lisa Kurek explains a real but often overlooked option of federal SBIR/STTR programs.

Feature Story Zach Steindler

Olark, Breaking the Silicon Valley Mold

Olark is a Silicon Valley-style startup that didn't raise venture capital, isn't run by Stanford and MIT grads, calls Ann Arbor its home and has employees scattered across the country... heck, the globe. And yet it's grown exponentially over the last three years. How does it do it? Funny you should ask...

36 hours of beer in Ann Arbor

Ann Arbor's amazing beer scene has almost become a given for those that live here. For those that don't it's a revelation. Excerpt: "It doesn't take a visitor long to notice the ever-present bouquet in the air of malt and hops, thanks to numerous craft beer bars, brewpubs and microbreweries. Throw in a few stellar beer gardens and it becomes patently clear that this town belongs on every beer lover's list of must-visit burgs." Read the rest here.

Director of UM Entrepreneur Institute talks future goals

Last fall, Stewart Thornhill stepped into the role of executive director of the Samuel Zell & Robert H. Lurie Institute for Entrepreneurial Studies, which is part of the University of Michigan's Stephen M. Ross School of Business. His big idea is to intiate a Silicon Valley-style business accelerator.   Excerpt: "The accelerator will be modeled on Y Combinator, Techstars, Launchpad LA. The perfect company to enter an accelerator is the one that is quarter-baked. You want it to be half-baked before it's really in a position to get that early, seed or angel investor money. But if companies try to go for that early investor too early, they're going to fail or they're going to have to give up so much of their company because of the wildly risky nature of it that it's often not worth doing. We often find that students who incubate ideas, whether in a formal incubator or just in their dorm room, often get to the point where they finish their degree, they'd love to be able to take it to that next stage, but they have to go get a job. They've got student loans, they have to pay rent, buy groceries." Read the rest here.

Transformer hides out in Ann Arbor

Move over Violin Monster, Transformer Joslyn Paige is taking to the streets. Excerpt: "Paige says that he has spent about $800.00 on his ‘transforming’ costume that even moves electrically when he transforms into the vehicle. Judging by the video kids love him. The 28 year old Paige chatted with the Detroit Free Press about his life as a human Transformer. Paige tells the Press that at the end of the day his knees hurt and that his best day of tips was around $700.00. Not bad for a street performer…I wonder how much he would do in say, New York City?" Read the rest here. Watch him here.

Are bike haters a sign of a successful cycling community?

While we have never understood the vitriole drivers express toward cyclists (other than they selfishly don't want to share the road and might have to pay more attention to what they're doing), the notion that more change means more friction and therefore it's a sign that things are changing is a provocative one. Excerpt: "The most thoughtful response, in the current case, came from Carl Alviani, writing in Medium. Alviani traces the source of much driver contempt toward cyclists to a basic cognitive bias called the fundamental attribution error—basically, a tendency to attribute behavior to personality or disposition, rather than a situation or environment. So, cyclists think they're above the law because that's how they are; not, cyclists occasionally make poor riding decisions because the road network wasn't designed with them in mind." Read the rest of the story here.

Ann Arbor named top swimming city in USA

Holy seastar! Ann Arbor is ranked number one as a place for swimmers. That's pretty impressive conisdering that we're a land-locked community. Excerpt: "Combine the influence of Michael Phelps and Ryan Lochte with demonstrable health and social benefits, and the result is that competitive swimming has exploded in popularity across the United States.  USA Swimming, the sport's governing entity, has released a study breaking down exactly where swimming holds the most sway. The cities most favorable to swimmers don't follow any geographic pattern, stretching from sea to sea and north to south. Metrics include the number of swimmers, swim clubs, and accessible pools, as well as the number of standout swimmers springing from each locale. The winner? Ann Arbor, Michigan." Read the rest here.

Grand Rapids-based HopCat to open in downtown Ann Arbor, create 140 new jobs

A Grand Rapids favorite that has been popping up across Michigan will soon make an appearance in downtown Ann Arbor. BarFly Ventures, the firm behind more than one popular Grand Rapids bar recently announced their fifth HopCat location will open at 311-315 Maynard Ave. The $2 million investment in the former Borders space will result 140 new local jobs.   "Ann Arbor is such a great town for dining, entertainment and culture, it was a really logical fit," says Chris Knape, marketing and communications director for Barfly Ventures. "We think that adding HopCat to the mix will add to the excitement downtown."  Just when Ann Arborites though they'd seen it all, HopCat will offer the largest draft system in the city with 100 varieties of craft beer on tap. A year after opening in East Lansing, work will soon begin on the 8,600 square foot space. But visitors to other HopCat locations shouldn't expect to see a cookie cutter remake. "We're going to completely gut the space and add a unique design to it," says Knape. "Whenever we open a new location, each place feels different. Ann Arbor is going to feel a lot different from the location in East Lansing, just like East Lansing feels different from Grand Rapids." The Ann Arbor HopCat is expected to open in January of 2015.   Source: Chris Knape, HopCat Writer: Natalie Burg

Vintage Barn Boutique brings fine furniture to downtown Chelsea

When Cathy Melton was a real estate broker in Florida, one of her favorite things about the job was the staging and design of the homes. That love grew into a design services business, and after the serial entrepreneur sold the business and moved back to Michigan, it led her to repairing and refurbishing furniture, which has culminated in the opening of Vintage Barn Boutique in downtown Chelsea.  "I really enjoy the fact that I could transform things and give them new life," she says. "When I started doing the refurbishment of furniture, I found I had a passion for it." Vintage Barn Boutique opened last week on Main Street in Chelsea in a 1,000 square foot storefront. Melton says the high, tin ceiling and the large, picture windows in the front of the shop made it a perfect fit for her work, which she repairs after collecting from estate sales, barns, the side of the road and more.  "Nine times out of ten, if I can repair it, I'll purchase it," she says. "You can buy new furniture anywhere. This, for the most part, is all American made, and meets the high standard of quality that was normal when I was growing up." The environmental factor is an important one for Melton. She says her work not only saves old furniture from filling up landfills, but is also gentle on the earth. She never uses any chemicals that are bad for the environment in her work.  Though only open a week, Melton says the Chelsea community has been very welcoming of her and the new store. She will also accept consignment items that fit the high standards for quality she's established for the shop.    Source: Cathy Melton, Vintage Barn Boutique Writer: Natalie Burg

Ann Arbor native revives Blue Front with craft beer focus

The life of a longtime Ann Arbor establishment is getting extended and refreshed with the reopening of the Blue Front on Packard under new ownership and a new look. Ann Arbor native Adam Gottschalk opened his completely renovated version of the beer store last week after receiving a hot tip about the business opportunity just five months ago from his father.  "It's been kind of a weird and very quick journey," says Gottschalk, whose parents manage the residential units above the store. "My dad said, 'Blue Front closed, why don't you move back and open up your own store? You have to decide by Monday.'" Gottschalk was already following his passion for beer working for a beer retailer in Chicago, so it didn't take much for he and his wife to make the decision to take the leap. Since then, the approximately 1,500 square foot building has been totally renovated, including new floors, walls, ceilings, coolers and more.  "People are always saying, 'I used to come in there all the time,'" Gottschalk says. "We want it to be that again. We're trying to bring back that neighborhood feel." Along with that cozy aesthetic, the new Blue Front offers about 600 different beers and 150 wines. Gottschalk hopes to eventually expand his wine selection more, as well as offer weekly beer tastings in the shop. He recently hired his first employee, and expects to hire one to two additional staff members in the future.  Source: Adam Gottschalk, Blue Front Writer: Natalie Burg

Rock Paper Scissors keeps retail on Main Street with new Bed & Butter shop

Lisa Roberts loves being a part of the retail scene on Main Street with her shop Rock Paper Scissors — so much so, that she'll soon open her second venture on street, Bed & Butter.  "As we've grown, we've listened to our customers, and we've heard they'd love to have a place to get a great wedding gift or get a great baby gift," says Roberts. "We thought it was a natural progression for us to offer great gifts for people." Though the opportunity to take over the space soon to be vacated by La Belle Maison only came about recently, Roberts says the idea to create a store around home goods, kitchen, baby items and gifts has been in the works for years. The focus of Bed & Butter, she says, will be to sell items that are as beautiful as they are useful.  Key to Roberts's decision to open her new store on Main was her desire to keep retail an important piece of the downtown business mix.  "We love being a part of Main Street in Ann Arbor," she says. "We're so excited to have the opportunity to provide people with a place to shop locally. As Main Street continues to change, one thing we hope to contribute to a great mix of retail and restaurants." The 333 S. Main store is approximately the same size as Rock Paper Scissors, and Roberts hopes to open by the Wolverine's first home football game in late August. A store manager has already been hired, and Roberts estimates four to six additional employees will join the team. Roberts also plans to eventually add classes to Bed & Butter's offerings, such as calligraphy and cocktails.  Source: Lisa Roberts, Bed & Butter Writer: Natalie Burg

The Brinery doubles production as it grows across Midwest

Even though The Brinery can be described as a slow-food startup, fast would be a better word to describe the Ann Arbor-based firm's growth. The 4-year-old company’s sauerkraut, kimchi, pickles and tempeh can be found in close to 100 stores in Michigan and Chicago. The Brinery has taken on two outside distributors over the last year after relying on self-distribution at local businesses and farmers markets. "We have pretty much doubled sales since last year," says David Klingenberger, founder of The Brinery. "Every year we have come close to doubling our sales." Helping make that possible is moving to a bigger production facility. Klingenberger started The Brinery by making sauerkraut in his home. This February he moved his business to the Washtenaw Food Hub, a new facility that helps provide support to local farmers and food companies to become economically and environmentally sustainable. "We're the anchor tenant there," Klingenberger says. And it's filling out that space quickly. The Brinery's team now stands at a dozen people, which is up from four a year ago. Klingenberger expects the numbers for his business (sales and staff) to keep growing as he aims to open up in markets in Ohio, Indiana, Wisconsin and Illinois over the next year. Source: David Klingenberger, founder of The Brinery Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

TECAT Performance Systems triples revenue since 2012

There is a lot of new over at TECAT Performance Systems. The Ann Arbor-based startup has some new staff, new markets for its principal product to explore, and a new name. The 2-year-old firm, which spun out of TECAT Engineering, changed its name to TECAT Performance Systems this summer. It also hired some new staff, including a new marketing person and CEO. The team of less than 10 people has been focused on growing the company’s revenue. It has added to its customer base and has tripled its revenue since 2012. "This year we have already exceeded last year's revenue," says Don Keating, vice president of business development for TECAT Performance Systems. "We have some exciting things in the pipeline for the rest of the year." TECAT Performance Systems is commercializing wireless sensor technology that collect environmental, motion and mechanical information and stream it wirelessly to a central control unit. These sensors, designed to be used in confined spaces, monitor and record live torque data from any rotating shaft. The company is now exploring options on using the technology to measure other things in other industries, such as defense. "The product itself has evolved so it can do multiple functions besides just measure torque," Keating says. In the meantime, TECAT Performance Systems is continuing to refine its sensor technologies with an eye for mass producing them on a much larger scale. However, such a increase in productivity is still a year or two away. "We're in the very early stages of those discussions," Keating says. Source: Don Keating, vice president of business development for TECAT Performance Systems Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Augment Ventures makes 2 investments in lighting startups

Augment Ventures is off to a fast start for 2014, making two investments in clean-tech startups and laying the groundwork to make a couple more before the end of the year. "Our portfolio is up to five startups right now," says Sonali Vijayavargiya, founder & managing director of Augment Ventures. Vijayavargiya launched the venture capital firm out of Ann Arbor nearly three years ago. Augment Ventures specializes in making early investments in startups in the clean-tech/sustainability sector. Its most notable investment so far is in downtown Ann Arbor-based logistics tech firm LLamasoft in 2012. Augment Ventures has made two investments so far this year. Both firms, Revolights and Lumenetix, are based in California. Lumenetix designs, manufactures and sells UL recognized color tunable LED light engines for fixture manufacturers. It is currently working with one of the Big 3 (Vijayavargiya declined to say which one) to integrate its products in the automotive sector. Revolights is working to bring new lighting solutions to bicyclists. "They're trying to bring 360-degree visibility to commuter bikers," Vijayavargiya says. She adds, "we are very excited about both (startups)." Augment Ventures has also added a couple of people to its team this year, expanding it to five people. That staff is working to nail down a couple more investments before the end of this year. "We are actively doing due diligence with five opportunities," Vijayavargiya says. "Two of those firms are Michigan-based." Source: Sonali Vijayavargiya, founder & managing director of Augment Ventures Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Big Air Software racks up hackathon wins, prize money

Sam Harrell is becoming a brand name in local hackathons and beyond, recently winning several and taking home enough prize money to supplement a comfortable middle class lifestyle. The Ann Arbor-based computer programer and founder of Big Air Software works on mostly consulting contract work in the private sector and developing his own apps. He won the New York City Kaltura Video Experience Hackathon earlier this summer, which included a $50,000 purse. He took $20,000 home when he won the Code Michigan hackathon last fall. He also won hackathons hosted by Ann Arbor SPARK and Maker Faire Detroit, which included some nice tech swag. Hackathons are usually one-day events where software developers, and sometime tech makers in general, collaborate to come up with innovative new technologies in a short, intense time period. Harrell likes them because they help him keep his edge when it comes to staying on top of what’s next in technology. "I just like to move fast and be agile," Harrell says. "Keeping up with tech trends and staying on top of them is a risky business. Not everyone has the stomach for it." When a tech startup goes on a competition tear like Harrell has been on lately that usually means some sort of angel investment isn't far behind the prize money. That's not the same situation with solo operators like Harrell because investors tend to gravitate toward teams with products as opposed to individuals with ideas. That means Big Air Software will probably remain a one-man operation until investors or entrepreneurs figure out a workaround. And that’s fine by Harrell. He is already planning on what to do at his next hackathon. Source: Sam Harrell, founder of Big Air Software Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Hasini and Harshini Anand are members of Corner Health Center's Youth Leadership Council and mental health advocates.

 


   Voices of Youth
Concentrate's Voices of Youth series features content created by Washtenaw County youth in partnership with Concentrate mentors, as well as feature stories by adult writers that examine issues of importance to local youth. Click here for a full list of the latest content from this series.