Adaptive Materials' military contracts lead to Ann Arbor job creation

Wednesday, March 17, 2010 | Source: Concentrate

Military contracts are proving profitable for growing Adaptive Materials, allowing the Ann Arbor-based start-up to expand its capacity and staff.

The innovative fuel cell firm just signed a $4.7 million contract with the U.S. Army to supply its signature fuel cells. That contract could grow to be worth $5.6 million and another significant multi-million dollar military contract is expected to be announced this spring. So far the company has scored $44 million worth of defense contracts. That will equal about 70 percent of its business in the first and second quarters of this year.

"Military has always been a key piece of our business plan," says Michelle Crumm, chief business officer for Adaptive Materials. "That will continue for us. It's a key piece of the puzzle."

It's also what's driving the Adaptive Materials' growth. It's staff has hit 57 people and an intern. The company has nine job openings and another two internship opportunities. After those are filled, the company hopes to add another 5-10 people later this year.

The 10-year-old company creates a fuel cell that turns fuels like propane into electricity instead of heat. That means its technology can convert a small propane tank used for camping into a generator that can keep a fridge going during a blackout. Think an emergency generator strong enough to power appliances but small enough to carry in your pocket.

The firm, the brain child of University of Michigan alum Aaron Crumm, plans to put its products in every RV, boat, ambulance and, well, any place that can use a highly efficient fuel cell.

Source: Michelle Crumm, chief business officer for Adaptive Materials
Writer: Jon Zemke