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Detroit Bikes hopes to make leap to national brand with key hire

Zakary Pashak has been the face of Detroit Bikes since he moved to the Motor City and launched the bicycle manufacturer in 2011. He set up the firm's production plant on the west side of Detroit, served as its spokesman, and made sale after sale. That's starting to change this summer.

Detroit Bikes has hired former Electra Bicycle Company founder Justin Manthe as its director of sales with the idea of setting up a national sales network for its classic American bicycles. Manthe spent close to 15 years building Electra into a top leisure and lifestyle bicycle brand in the U.S. before coming becoming a part of the Detroit Bikes team.

He's already on the job.

"There are 160 million American who don't ride a bike but could," Manthe says. "We want to build a bike for them."

Detroit Bikes specializes in building accessible, quality bicycles for everyday cruising. It is leveraging Detroit's manufacturing heritage by producing thousands of bikes at its 50,000-square-foot facility. It also recently opened a flagship store in downtown Detroit at 1216 Griswold. The firm’s team of a couple dozen people can produce up to 100 bicycles a day.

"Our goal is fill this facility (with bicycle production) one day," Manthe says.

Source: Justin Manthe, director of sales for Detroit Bikes
Writer: Jon Zemke

In its 95th year, Kowalski Companies invests in Hamtramck home, aims to hire 200

Few things say Hamtramck as much the Kowalski sausage sign on Holbrook. It has been an iconic part of the inner-city enclave for generations. This year it's getting a new lease on life as the Kowalski Companies embarks on an ambitious expansion of its operations.

In addition to restoring its iconic sign, the sausage maker is celebrating its 95th anniversary by upgrading its production facilities and adding staff with the goal of expanding its market share.

"We have had many offers to sell the facility in Hamtramck, mostly from out-of-state companies," says Michael Kowalski, president and CEO of Kowalski Companies. "But we have declined these offers because we want to stay where our roots are and give employment opportunities to those who live in the area."

Michael Kowalski is the fourth generation of the Kowalski family to run the business started by his great-grandparents, Zygmund and Agnes. The Polish immigrants first owned a small grocery store on Chene Street in Detroit. They added a smokehouse to the store and began making Kielbasa and other sausages. Demand for those sausages prompted the family to open its factory on Holbrook in 1920.

Michael Kowalski and his sister, Linda Kowalski Jacob, now run Kowalski Companies. The firm has been acquiring other foods companies since 2002. It now has 55 varieties of prepared foods distributed in grocers throughout the Midwest. The brands in the Kowalski Companies' portfolio include Dudek, Tassos, Amhurst Kitchens, Just Sweet 'Nuff Chicken'n'Rib Sauce, Our Famous Sweet'n'Spicy Chicken'n'Rib Sauce, Yiayia's Famous Greek Salad Dressing, Consumer Guild Supreme, Home Style Foods, and The Original Hunters Sausage.

About 2,000 people have worked at the company over its history. It now employs a staff of 160 people after hiring 25 people in production, sales, and truck driving over the last year. It is looking to hire a handful more in production right now. Kowalski Companies is aiming to hire another 200 over the next five years as it expands its production capabilities and adds new equipment and renovates its facilities.

"We'll take a look at anybody who is good," Michael Kowalski says.

Part of the improvements include investing $1.5 million into the Homestyle Foods production facility in Hamtramck. Kowalski Companies is also looking to finish work on refurbishing the Kowalski sign that has stood vigil over Holbrook since the 1940s.

"Once it's done everyone is going to love it," Michael Kowalski says.

Source: Michael Kowalski, president and CEO of Kowalski Companies
Writer: Jon Zemke

Ann Arbor's robot city

The University of Michigan has opened Mcity, a $6.5 million, 32-acre simulated urban and suburban environment where self driving cars and mechanical pedestrians run wild.

Okay, maybe not run wild. But it does make you wonder when they'll open WestWorld.

Excerpt:

"The University of Michigan opened Mcity, the world's first controlled environment specifically designed to test the potential of connected and automated vehicle technologies that will lead the way to mass-market driverless cars today."

Read the rest here.
 

Cool Tools Committee keeps Logic Solutions ahead of tech curve for 20 years

Logic Solutions is celebrating its 20th anniversary this year, which makes it a veteran of the local software scene. This is no small feat in an industry where many startups flame out after a couple of years.

So how does the Ann Arbor-based company stay young and relevant in a world of constant change?

"It's about continuing to keep up with the next big thing," says Angela Kujava, director of innovation for Logic Solutions. "It means staying on top of trending technology, adopting it, and getting your customers to adopt it."

Which is a lot easier said than done. It's easy for entrepreneurs to talk about staying ahead of the technology curve by being able to pick the winners and losers of what's next. It's much harder to actually do it.

Logic Solutions has done it. The company, which develops software for everything from websites to mobile apps, has handled 5,000 projects for 2,000 clients in its two decades, creating 3,000 websites or web apps and another 100 mobile apps in that time. That has allowed it to grow to 200 employees in six offices around the world. It employs 45 in Ann Arbor, where it has hired a handful of people over the last year.

Logic Solutions is successful partly because it picks which technology trends to pay attention by committee. Its five-person Cool Tools Committee meets every other week to talk about technology trends and ideas. They debate the merits of what is brought to the table and occasionally pick a winner from that bunch.

"Anything that they think we should dive into or at least take a look at we make plans to do," says Matt Sarkesian, CTO of Logic Solutions.

It's how Logic Solutions got started with the Magento e-commerce platform. It took a year of research and toying with it before the company brought it onboard, but today it makes up a huge part of the firm's revenue.

"These decisions aren't something we make with a hair trigger," Kujava says. "At the same time we try to make and adopt them quickly."

Source: Matt Sarkesian, CTO of Logic Solutions, and Angela Kujava, director of innovation for Logic Solutions
Writer: Jon Zemke

From pop-up to restaurant, Central Provisions becomes Spencer

Dreams of opening a restaurant are the obvious inspiration for most pop-up eateries, but very few make the leap to a brick and mortar space.

Steven Hall and Abby Olitzky are on their way to sticking that landing. The young couple (they recent became engaged) plan to open a restaurant and cheese bar in downtown Ann Arbor called Spencer. In preparation, they spent a couple of years toiling as a pop-up restaurant and catering service called Central Provisions. They intended to open the restaurant under the same name but discovered there is already an eatery with the same moniker in Maine.

"We decided it's not worth the confusion," Hall says. "We saw the restaurant opening as a good opportunity to change the name."

Spencer is set to open this fall at 113 E Liberty. It will occupy 1,200 square feet and be able to seat about 50 people. The couple are leaving their day jobs at Zingerman's and Sweet Heather Anne (as well as the pop-up gig) to open Spencer.

"The goal had always been to have our own restaurant," Hall says. "The pop-up was an easy way to build up our name and reputation."

They do have some pointers for people looking to do the same:

- Take your time. Use the pop-up experience to perfect our cooking and management skills. The sharper those skills the easier the transition to a brick-and-mortar space. Also use that time to build out a support network of professionals in the space and find the best place to open shop. Hall and Olitzky thought they had found the perfect space a few times before locking down their current location.

- Don't settle. Take the time you are biding to search out a number of locations. Figure out which type will work best with what you're trying to do. Hall and Olitzky figured out a place that was ADA compliant and had built in kitchen equipment meant more to them than the character of a raw space that had never been a restaurant before.

- Hustle to make money. Pop-ups aren’t enough to support a comfortable adult lifestyle. Hall and Olitzky supplemented their income from pop-ups with day jobs in the food industry and after-hours catering gigs in their spare time.

"It's definitely all about the hustle," Hall says.

Source: Steven Hall, co-owner of Central Provisions and Spencer
Writer: Jon Zemke

Reveal Design Automation scores $50K from Zell Lurie Fund

Reveal Design Automation has scored a $50,000 investment from the Zell Lurie Commercialization Fund, a pre-seed investment fund from the University of Michigan's Ross School of Business.

The money is the last infusion of seed capital the University of Michigan spin-out will received. The angel investments and federal grants total nearly $4 million that is going toward the development of the Reveal Design Automation's semiconductor chip design technology. The $50,000 will go toward helping the Ann Arbor-based company land more customers.

"We have a sales team now," says Zaher Andraus, president & CEO of Reveal Design Automation. "They also provide customer support."

Reveal Design Automation specializes in developing electronic design automation software. The software helps simplify the complicated semiconductor chip design that shortens the verification timeline and lets makers bring it to market faster.

The firm has already finished the Version 1 of its platform and has deployed it to a couple of initial customers in industries like telecommunications and automotive. It now has a team of 12 people after adding a couple over the last year.

"I want to make sure we have more customers," Andraus says. "I'd like to have as many Tier 1 customers are we can support and 20-30 employees."

Source: Zaher Andraus, president & CEO of Reveal Design Automation
Writer: Jon Zemke

Fresh Corner Cafe begins popping up in Detroit community centers

Fresh Corner Cafe has long been an innovator when it comes to improving the availability of healthy food in inner-city neighborhoods. Now the company is introducing a couple of new programs, including one that is bringing healthy-eating pop-ups to community centers across Detroit.

The Midtown-based startup has launched its Fresh Food Pop-up in a handful of Detroit's community centers, starting with one in Brightmoor (the Detroit Achievement Academy) this summer. The weekly pop-up eatery will feature its freshly made sandwiches, wraps, and other eatables.

"Every community center we partner with will have a weekly pop-up," says Noam Kimelman, founder & president of Fresh Corner Cafe.

The 5-year-old startup, which is based out of the Green Garage, got its start with the idea of bringing fruits and vegetables to inner city corner stores, where food choices are often unhealthy, prepared foods. The idea was bring more healthy-eating options to stores where working class people only had a few shelves of junk food to choose from.

Fresh Corner Cafe switched to selling its own sandwiches and wraps from those bodegas, and eventually went with selling them from their own coolers. The business also started its own catering service.

"Catering has become an important part of our business," Kimelman says.

The Fresh Food Pop-up program will start in half a dozen community centers this summer. Kimelman and his team of five people hope to grow it to 40 community centers by the end of the year.

"This model takes us directly to the consumer," Kimelman says. "We can sell it to the consumers at the wholesale price."

Fresh Corner Cafe also recently launched a new lunchbox catering website called "Small Batch that Box," which allows customers to add locally made foods to their lunch. The options include Detroit Friends' authentic farm-to-table potato chips and a dark chocolate peanut butter granola bite made by the Detroit Food Academy.

Source: Noam Kimelman, founder & president of Fresh Corner Cafe
Writer: Jon Zemke

Peck Produce aims to sell 20,000 pounds of vegetables from its urban farm

Peck Produce is growing a lot of vegetables this year. So much that the urban farm expects to sell 20,000 pounds of produce after everything is harvested this growing season.

"We're trying to do as much as we can with what we have right now," says Noah Link, co-owner of Peck Produce.

Link and Alex Bryan launched the urban farm in 2011 after purchasing a four-acre lot from the Michigan Land Bank. The one square block sits on the 1600 block of Lawrence Street. It previously served as the home Peck Elementary School before it was torn down.

Today Peck Produce, also known as Food Field, grows a wide variety of fruits and vegetables on the site, including leafy greens, tomatoes, sweet potatoes, carrots, ginger, artichokes, and parsnips. Last year the urban farm sold 16,000 pounds of produce.

Peck Produce also has chickens it uses to produce fresh eggs and turkeys for butchering later this year. It also has an aquaponics operation that is growing all sorts of native fish.

"We have 400-500 catfish and blue gill growing in the fish pond," Link says.

Peck Produce has a staff of four people, including two new team members it has brought on over the last year. Link and his team are starting to host community dinners this summer with food grown on the farm to help bring more people into urban agriculture as either practitioners or patrons.

Source: Noah Link, co-owner of Peck Produce
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Fortune Magazine highlights growth of black women-owned businesses in Detroit

 
The number of women-owned businesses is on the rise in the U.S., having grown by 74 percent over the last 18 years.  The number of businesses owned by black women, however, is growing at an even more astounding rate of 322 percent over the same period. That makes black women the fastest growing group of entrepreneurs in the country, according to a recent story by Amy Haimerl for Fortune Magazine.
 
Haimerl highlights Build Institute, an organization dedicated to helping local entrepreneurs grow their businesses, and Detroit small business owners Danielle Smith of Detroit Maid and Carla Walker Miller of Walker Miller Energy Services.
 
Writes Haimerl:
 
"In Detroit, where city leaders, foundations, and even President Obama have promoted entrepreneurship as an economic development tool, a tiny nonprofit is making outsize efforts at helping black women become business owners. Since it was formed in 2012, the Build Institute has graduated nearly 600 students from its eight-week courses, which teach the basics of starting and running a business, including such topics as money management and how to determine your break-even point. Nearly 70% of those students are women, and 60% of them identify as a member of a minority group."
 
Read more: Fortune

IT firm CBI moves to downtown Detroit

CBI, also known as Creative Breakthroughs, is making the move to downtown Detroit, taking up a large chunk of office space in the city’s central business district.

The IT firm is taking up three floors of 1260 Library St., which is every bit of the 4-story building except for the ground floor retail. CBI is moving 50 people into the 10,000 square feet of office space this summer.

"We looked in downtown and Midtown," says Steve Barone, CEO of CBI and a Detroit native. "We couldn't find anything in Midtown."

CBI specializes in IT risk management. It helps protect its customers from hacking and other dangers in the IT world. It's a space in which the 26-year-old firm has grown rapidly.

"We have been doing it a for a long time," Barone says. "It's finally out there that this is something companies need to spend money on. We are in the right place at the right time."

CBI has been averaging 30 percent revenue growth in recent years. It's on track to grow another 40 percent this year. That means more hires. The firm has hired 40 people over the last year, expanding its staff to 120. Despite those hires, CBI is currently looking to fill 20 new open positions.

"We are in rapid-growth mode," Barone says. "We think we will hire 40 more people this year."

About 50 of those people will make the move to downtown Detroit. Thirty more work remotely across the U.S. The rest are staying in CBI's current temporary offices in Ferndale. It moved there from Troy last year, but downtown Detroit is the company's final destination, according to Barone.

"I am glad we're moving back to the city," Barone says. "It's a lifelong dream to get back to the city I love."

Source: Steve Barone, CEO of CBI
Writer: Jon Zemke

Loveland Technologies launches custom mapping platform, Site Control

For several years, Loveland Technologies has been a startup without a steady revenue stream, relying on custom projects creating digital tools to document property ownership in cities across the U.S. Now the downtown Detroit-based software firm is opening what it hopes will be a new pipeline of consistent business.

Loveland's newest product is Site Control, a software-as-a-service platform that enables users to open personal accounts within Loveland Technologies software and create their own custom maps. The company is offering two Site Control subscription levels: a scaled-back package costing $30 a month and more robust one at $1,000 per month. Loveland is targeting municipalities, neighborhood groups, real-estate developers, and researchers as its initial customers.



"We're trying to get on this track of many more people paying us less money," says Jerry Paffendorf, co-founder & CEO of Loveland Technologies. "We want to grow that pipeline."

The inspiration for Loveland hit Paffendorf and his friends a few years ago when they bought a vacant lot in Detroit and sold square inches of it online. That evolved into a software startup that mapped out every parcel for sale at the Wayne County Tax Auction. WhyDontWeOwnThis.com came online when Wayne County started selling tens of thousands of tax-foreclosed properties, mostly in Detroit, a few years ago.

Since then, Loveland Technologies has monetized its technology by doing custom projects, mapping out things like property ownership or property condition for municipalities. Its highest profile project was working on Motor City Mapping last year. It has since expanded to mapping out close to 500 counties across the U.S. (out of about 3,200 counties), including most of the country's major metropolitan areas. 

"Why would we stop at Detroit?" Paffendorf says. "This is an interesting way to view the world."

Loveland Technologies is also growing its team. It has doubled its employee base to 20 people over the last year and is bringing on two more people (Venture For America fellows) this fall. The company also landed an angel round of investment early last year worth a little more than $1 million from investors like the University of Michigan Social Venture Fund. The firm is funding its expansion with that cash and its own revenues.

Source: Jerry Paffendorf, co-founder & CEO of LOVELAND Technologies
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Michigan Good Food Fund launches to promote access to healthy food throughout the state

Last week, dozens gathered at Shed 5 of Detroit's Eastern Market for the official launch of the Michigan Good Food Fund, a new public-private partnership loan and grant fund created to address lack of food access in rural and urban communities by supporting good food entrepreneurs across the state.
 
According to the Michigan Good Food Charter, good food is healthy, green (sustainable), fair (no one was exploiting during its creation), and affordable.
 
The fund meets two distinct needs for urban areas like Detroit: the need for healthy food access and the need to drive economic development within the local food supply chain, from cucumber farmers to jam makers, farm stands to grocery stores, processors to distributors, and any entity in between.
 
The fund is not only available for financing, but will provide technical assistance and counseling for businesses serving disadvantaged communities.
 
Clearly, the time is right for the Michigan Good Food Fund here in the Motor City. Detroit’s food scene has kept pace with the city’s burgeoning farm and garden movement. Detroit Food Lab has 140 members that participate in training and activities to help cultivate their individual food business start-ups. Between the city’s pop-up-shops-turned-restaurants, internationally envied urban gardens, and many small producers making big waves, the momentum is growing.
 
Yet, despite the growth and promise in farming and food production in Detroit, many of these high-quality fresh and processed goods don’t make it into low-income households.
 
What’s happening in Detroit is happening statewide. While Michigan is the second most agriculturally diverse state in the nation with food and agriculture contributing $101.2 billion annually to the state's economy, more than 1.8 million Michigan residents—including 300,000 children—live in lower-income communities with limited healthy food access. Wayne County has the highest food insecurity rate among U.S. counties, at 20.9 percent.
 
The lack of access to affordable and nutritious food has serious implications for the health of our children and families—more than 30 percent of Michiganders are obese, the second highest rate of obesity in the Midwest region. Communities of color are disproportionately impacted.
 
“The Michigan Good Food Fund will be an essential component of our work to provide accessible healthy food to everyone in Michigan, especially vulnerable communities,” said Oran Hesterman, Fair Food Network president and CEO. “The fund will also be an incredible opportunity for food entrepreneurs, harnessing capital, and growing strong, local economies.”
 
Fair Food Network and Michigan State University Center for Regional Food Systems will co-lead business assistance and pipeline development. Other core partners include the W.K. Kellogg Foundation and fund manager Capital Impact Partners.
 
Source: Meredith Freeman, program director at the Fair Food Network
Writer: Melinda Clynes, Michigan Kids project editor
 
This story is part of a series of solutions-focused stories and profiles about the programs and people that are positively impacting the lives of Michigan kids. The series is produced by Michigan Nightlight and is made possible with funding from the W.K. Kellogg Foundation. Read other stories in this series here.

Woodward Throwbacks scores major order with Nordstrom

Lots of aspiring entrepreneurs start lifestyle businesses with big dreams of selling their wares across the country. Woodward Throwbacks is starting to live that dream.

The small business that turns reclaimed wood into consumer goods can now be found in more than a dozen Nordstrom stores across the U.S. The luxury retailer is helping the Corktown-based business launch its line of products nationally.

"They really like what we're doing," says Kyle Dubay, co-founder & CEO of Woodward Throwbacks. "They like the authenticity of it. They think it's a great fit for their stores."

Dubay and his partner Bo Shepherd launched Woodward Throwbacks after they began making products from wood they found at illegal dumping sites across Detroit. The products ranged from bottle-opener signs to six-pack containers that resemble lunch boxes from the early 20th century. Prices for these products range from $20-48.

The four-person operation makes the items by hand at its Corktown studio. It raised $12,000 in a crowdfunding campaign last year to build out its new permanent home just west of Corktown. That project is still ongoing, but Dubay the business will move there within the year.

Nordstrom will sell Woodward Throwbacks products in 27 of its 118 full-line stores. They can be found in stores as close as the Twelve Oaks Mall in Novi and as far away as Anchorage, Alaska.

Source: Kyle Dubay, co-founder & CEO of Woodward Throwbacks
Writer: Jon Zemke

AlumaBridge's first aluminum bridges go up in Quebec, Florida

AlumaBridge's big claim to fame is creating a better bridge, made out of aluminum, which is lighter, stronger, and more durable than traditional options. Travelers should get their first chance to test it out later this summer.

The Ann Arbor-based company’s first bridge is being built in Quebec, Canada. AlumaBridge completed the fabrication of its bridge deck sections late last year. Those pieces are currently being constructed by the Quebec Ministry of Transportation.

"It should be open to traffic by the first week of August," says Greg Osberg, president & CEO of AlumaBridge.

The 1-year-old company uses aluminum as its principal material for prefabricated pieces of bridging. The idea is the specially fabricated aluminum pieces will extend the life of aging bridges much beyond the current standards for concrete. The aluminum bridge deck panels are made using friction stir welding and have a non-skid surface. They can easily be applied to the steel girders on existing bridges, giving many more years of service.

AlumaBridge is also working on a fabricating more bridge sections for a span in Florida. It delivered the first sections early this year and expects that project to come online later this year.

"We will have additional panels shipped in August," Osberg says. "They will be tested by the Florida Department of Transportation and Florida International University before they are installed."

AlumaBridge is currently working with Florida and Canada on more potential bridge projects. The company is also trying to make in-roads with the Michigan Department of Transportation, but the company’s most promising prospects appear to be north of the Great Lakes State.

"The city of Montreal also indicated that they have some projects in mind," Osberg says.

Source: Greg Osberg, president & CEO of AlumaBridge
Writer: Jon Zemke

Ann Arbor's record setting $100M office sale

If you want an indicator of how much office space is in demand in Ann Arbor, consider Oxford's $100M office acquisition.

Excerpt:

"It's hard for me to put into context," said Andrew Selinger, market analyst for Oxford, "but it's probably one of the defining deals of Ann Arbor real estate history."

Read the rest here.
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