RPI Newsletter | Quarter 1 2018

RPI Newsletter | Quarter 1 2018

Quarter 1 - 2018

The State of Our Region

NAFTA RENEGOTIATION INVESTOR SPOTLIGHT: EPITEC A 20-YEAR VISION FOR GERALD R. FORD INTERNATIONAL AIRPORT

is now available online!

We’ve just launched an online version of the RPI Insider, available to all of our investors. This digital edition will make it easier to print, save, and share the RPI Insider. To access your online copy of this issue, follow these steps:

1. Visit www.rightplace.org/insider 2. Enter the passcode: RightPlace1985

TABLE OF CONTENTS

2

8

19

NAFTA Renegotiation

CEO Update

Manufacturing Success Simonds International

3

9

20

Economic Development Progress Update 2018 Projects and 3-Year Progress

Newaygo County Area Dashboard

Talent Intern Connect Hello West Michigan Annual Meeting

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22

4

A 20-Year Vision for Gerald R. Ford International Airport

Projects Axis Company Viking Foremost Farms

Meet the Team Investor Relations & Events

12

24

7

FEATURE ARTICLE: The State of Our Region

Calendar of Events

2018 MedDevice Forum

18

25

Investor Spotlight Epitec

Etc. Intern Spotlight

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TABLE OF CONTENTS

CEO Update For those who felt as though 2018 started like a rocket launch, you’re not alone. The wide variety of articles in this quarter’s issue of the RPI Insider reflect the rapid pace of growth and change many of us are experiencing.

Our business development team has already completed five business development projects in 2018, resulting in 159 new jobs and $82.7M in new capital investment. We also have a robust pipeline, with several projects slated to be announced in the coming weeks. The Gerald R. Ford International Airport (GFIA) is in the midst of a new 20-year master plan that will support the next generation of economic prosperity we are working to bring to West Michigan. We are working in collaboration with GFIA throughout the process, providing insights from an economic development perspective. Government officials from the U.S., Canada, and Mexico are continuing to renegotiate the North American Free Trade Agreement, and the outcome of these talks has the potential to significantly impact our economy inMichigan. In order to keep the regional business community updated on this important issue, we hosted a luncheon with Mr. Douglas George, the Consul General of Canada in Detroit. As the economy moves through this period of growth and change, know that our team at The Right Place is here to assist you and your business. Our Business Development team continues their work meeting with over 400 businesses each year, ensuring you have the tools, support, and connections you need to grow here in West Michigan. These meetings also provide our team with critical business intelligence, allowing us to keep our finger on the pulse of the regional economy. Our feature article this issue highlights the insights we have gained from these meetings. As companies continue to expand, invest, and create jobs in our community, The Right Place will continue driving current and long-term economic growth and prosperity in West Michigan. The GFIA 20-year master plan, challenges with NAFTA, and our work retaining and growing local companies are just a few examples of the depth and breadth of what we do to move the West Michigan economy forward.

Birgit M. Klohs President & CEO The Right Place, Inc.

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LETTER FROM THE PRESIDENT

2018 Economic Development Projects ECONOMIC DEVELOPMENT PROGRESS UPDATE

ECONOMIC DEVELOPMENT PROJECTS COMPLETED: 5 ANNUAL GOAL: 17 MANUFACTURING SUPPORT CONTRACTS COMPLETED: 52 ANNUAL GOAL: 120 COMPANIES SERVED: 249 ANNUAL GOAL: 400 CUMULATIVE COMPANY ASSISTS: 504 ANNUAL GOAL: 1,333 WORK-READY TALENT ASSISTS: 127 ANNUAL GOAL: 525 EVENT ATTENDEES: 700 ANNUAL GOAL: 1,600

Retained Jobs

New Jobs

Company

Payroll

Investment

Axis Company LLC

50

$4,248,400

$4,000,000

Viking Group

50

$2,366,000

$18,000,000

Foremost Farms Greenville

33

$1,621,620

$57,952,000

MPH Trucking and Logistics

22

$515,840

$2,701,360

VNA Corporation

4

$323,980

$25,000

Totals

159

$9,075,840

$82,678,360

ANNUAL GOAL: 1,400

2018 TOTAL: 159

NEW/RETAINED JOBS

3-YEAR GOAL: 4,200

3-YEAR TOTAL: 1,600

ANNUAL GOAL: $50,000,000

2018 TOTAL: $9,075,840

NEW/RETAINED PAYROLL

3-YEAR GOAL: $150,000,000

3-YEAR TOTAL: $79,509,734

ANNUAL GOAL: $167,000,000

2018 TOTAL: $82,678,360

NEW CAPITAL INVESTMENT

3-YEAR GOAL: $500,000,000

3-YEAR TOTAL: $203,323,717

NOW AVAILABLE: THE RIGHT PLACE 2017 ANNUAL REPORT We've just released our 2017 Annual Report. Look for your copy in the mail, or view it online at www.rightplacereport.org

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ECONOMIC DEVELOPMENT PROGRESS UPDATE

AXIS COMPANY

Axis Company opens second facility in West Michigan

Grand Rapids-based Axis Company has announced they will be expanding to a second location in Kent County. This decision came after the company explored multiple out-of-state options for a second location, with one being closer to a major customer. The Right Place and the Michigan Economic Development Corporation (MEDC) were able to craft a compelling business case to ensure Axis Company chose to remain in West Michigan. The resulting expansion will create $4 million in capital investment, along with 50 high-tech jobs. The MEDC is supporting the expansion effort with the approval of a $400,000 Michigan Business Development Program performance-based grant, as well as $125,000 in support from the Michigan New Jobs Training Program.

Although the company reviewed several properties outside of Michigan, Axis Company ultimately felt that staying in the Grand Rapids area presented many benefits, including a strong advanced technology workforce. “Robotics and automated production technology companies like Axis are innovating the future of manufacturing and providing quality jobs in our community,” said project lead Jen Wangler, Business Development Manager of The Right Place. “Our high-tech and skilled labor workforce is a desirable trait to fuel Axis’s continued growth.” Axis Company designs, programs, and builds robotic automation and assembly equipment for awide range of manufacturers and industries. The company is forecasting continued growth in the coming years and as a result, they expect to hire 50 new team members over the next three years. These positions will be across a wide variety of high-tech and skilled positions. To learn more about Axis Company and open positions, please visit www.axisco.com/careers .

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VIKING

Viking Group announces plans for new headquarters in West Michigan

Business Development Manager, The Right Place. “We’re excited to see what this state-of-the-art headquarters facility, with world-class R&D and training facilities, will do for the forward-thinking Viking.” West Michigan’s ability to attract and retain talent was one of the deciding factors in Viking’s decision to complete this expansion in the region. “As our organization and industry continue to grow, and we develop more sophisticated technology to precisely detect and suppress fires, it’s crucial that our manufacturing capacity keeps pace,” Golinveaux added. “Viking Group considers West Michigan the ideal region to support our future expansion and to attract and retain world- class talent, and this investment is a demonstration of that belief.” For more information on Viking Group, visit www.vikinggroupinc.com .

While the final site of the new HQ has not yet been determined, it will be located near M-6 and M-37 in Caledonia and is slated to be completed in early 2019. The new building will feature a high-tech training facility in addition to an upgraded R&D infrastructure. The Right Place assisted Viking Group in identifying the M-37 corridor in Caledonia Township due to its close proximity to both its Hastings campus and Grand Rapids offices. “We want to thank The Right Place for their assistance with this strategic project. Their guidance and knowledge provided the support we needed to fulfill this vision,” said Golinveaux. “We knew that Viking wanted to stay close to its Hastings operations while maintaining its presence in the Grand Rapids area, so we felt that the Southwest Grand Rapids area, with M-37 access, would be ideal,” said Thad Rieder, Senior

Viking Group has chosen Caledonia Township as the location for its new global headquarters and R&D center. The company expects 100 people to move from its Grand Rapids and Hastings offices to this new location. Viking is a fire protection product manufacturer and distributor with products including commercial and residential devices such as fire sprinklers, valves, and fire protection devices. They are currently being sold in over 90 countries. “The expansion of our West Michigan footprint is an investment not only in the communities we are proud to call home, but in our employees, who are the key to our continued success,” said Viking Group President and CEO James Golinveaux. “The new facility will free up space in our Hastings location, which will continue to house manufacturing operations, and will be conducive to the future expansion of our manufacturing footprint.”

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2018 ECONOMIC SUCCESS STORIES

FOREMOST FARMS

Foremost Farms invests $57.9 million in Greenville with assistance from The Right Place

These resources and commitments include: • The Michigan Strategic Fund (MSF) is supporting the expansion with a private activity bond inducement valued at up to $12 million. Approval of the bond authorizing resolution is expected to take place at an upcoming MSF meeting. • The Michigan Department of Agriculture and Rural Development (MDARD) is supporting the project with a $500,000 grant from its Food and Agriculture Investment Fund. • The City of Greenville plans to support the project with a 12-year property tax abatement valued at $2.33 million. • The MEDC will consider incentive support for the project at a future date. • The company is also expected to receive a grant fromWest Michigan Works!. “Through the many evolutions this project has taken, there have been a number of quick responses needed from the many partners involved at all levels,” said Kathy Jo VanderLaan, Business Development - Montcalm County, The Right Place, Inc., and Montcalm Economic Alliance. “The City of Greenville has gone above and beyond with their participation and flexibility. Representative Jim Lower played a key role in getting this over the finish line. The result will be new jobs for people in our community, future growth opportunities, and relief for Michigan dairy farmers.” To learn more about Foremost Farms, please visit www.foremostfarms.com .

“Foremost Farms’ executive management and board of directors are very appreciative of The Right Place, MEDC, the City of Greenville, MDARD, MDOT,WestMichigan Works!, and Representative Jim Lower, along with all of the other combined agencies in making this a reality to strategically build this facility in Greenville,” said Foremost Farms President and CEO Michael Doyle. “It is an ideal location as a manufacturing base for Foremost Farms USA to unify our seven-state cooperative membership’s milk. Our goal is to develop and grow this facility to continually meet the value-added needs of our customers. This, along with furtherdeveloping our strategic alliancewith Michigan Milk Producers Association that began at Constantine, Michigan, will add value for our members and all producers in this market,” Doyle added. The Right Place, Inc., Montcalm Economic Alliance, and the City of Greenville served as the key partnerswith Foremost; however, the agencies also worked collaboratively with MDARD, MEDC, West Michigan Works!, Montcalm Community College, and other local resources to help bring Foremost to Greenville.

Wisconsin-based dairy processing cooperative, Foremost Farms, has announced it will be investing $57.9 million to build a 55,000 square foot milk-condensing facility in the Greenville Industrial Park. Foremost hopes to break ground on the first phase of the multi- year endeavor in the coming weeks with the intention of being operational before the end of the year. The first phase is expected to create 33 jobs. Foremost Farms officials hope this initial investment will spur the development of a large-scale dairy processing campus over the next several years. Foremost is already engaged in talks with additional companies in creating value-added production facilities on the campus to serve Foremost’s cooperative partners. Once open, the plant will condense 3.2 million pounds of raw milk per day (roughly 386,000 gallons). The final product, condensed milk solids such as cream and skimmilk, would beused byForemostco-op facilities and strategic alliance partners around the Midwest to further process the condensed milk into products such as cheese, butter, and yogurt.

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2018 ECONOMIC SUCCESS STORIES

WEST MICHIGAN’S MEDICAL DEVICE INDUSTRY NATIONAL MEDICAL DEVICE FORUM COMING TO GRAND RAPIDS! It’s coming to West Michigan – The 2018 MedDevice Forum!

the space, Medical Product Outsourcing’s conference series has provided the medtech industry with the most comprehensive programs for over 10 years. These highly informative symposiums address critical issues impacting multiple stakeholders within the industry. In 2018, the MedDevice Forum—a brand new, medical device manufacturing conference event—will debut in Grand Rapids, Michigan. Modeled after the industry leading MPO Summit, MedDevice Forumwill offer amore intimate setting for attendees seeking solutions to industry challenges. This event will simultaneously highlight the appeal of the region for medtech while tackling many the most significant issues and challenges today’s medical device companies are facing. Taking place in such an impressive location, this interactive networking and educational event will partner local experts with out-of-state industry thought leaders —OEMs, contract manufacturers, suppliers, consultants, members of the investment community, and academia—for a unique forum to discuss critical industry topics and offer tools to compete and grow in today’s volatile business climate.

For over five years, The Right Place, the Grand Rapids SmartZone, and MiDevice (The Right Place’s medical device consortium) have been collaborating to attract a major medical device conference to West Michigan. As a result, MPO Summit’s 2018 MedDevice Forum will be held in Grand Rapids at the Michigan State University’s College of Human Medicine Secchia Center. The Right Place and MiDevice worked together to secure Grand Rapids as the host city for the event on May 22, 2018. Organizers expect to have up to 150 participants attend the event from around the United States. This event will bring a new spotlight to West Michigan’s growing medical device manufacturing industry and the opportunities that exist here in the region. The Right Place and MiDevice will host a reception and provide tours to many of the companies attending the forum. ABOUT THE MEDDEVICE FORUM Focusing on the world of outsourcing for medical device manufacturing coupled with a keen awareness of innovation in

The West Michigan region is home to nearly 600 companies and approximately 41,000 jobs focused around the medical device and life sciences industries. Residents of the area include MedPlast, Stryker, Perrigo, Autocam Medical, Pfizer, and Skytron. Life sciences companies account for more than $7.9 billion in economic activity in the region. In addition, West Michigan higher education institutions produce more than 10,000 STEM graduates annually, fueling the growth of the industry. Venture capital investment in life sciences in West Michigan totaled more than $106 million in 2016. THANK YOU TO OUR PARTNERS We want to provide a special thank you to the Michigan State University—College of Human Medicine for graciously hosting this event. The Grand Rapids SmartZone provided the financial support and resources to enable us to continue pursuing this opportunity. We would also like to thank Brent Nowak, Ph.D., and Grand Valley State University for determining panel speakers. Experience Grand Rapids is providing excellent customer service for the event and we thank them for their support.

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2018 MEDDEVICE FORUM

NAFTA RENEGOTIATION: HOW INTERNATIONAL TRADE TALKS WILL AFFECT WEST MICHIGAN

The need for increased efficiencies at this heavily-trafficked border have necessitated the development of the Gordie Howe International Bridge in Detroit. This six-lane bridge will connect 1-75 to Highway 401 in Canada, and support thousands of jobs across Michigan and the United States. The procurement process for the bridge has already begun, and construction is expected to begin in 2018 after a private sector partner is selected to build the crossing. HOW TO GET INVOLVED When NAFTA was enacted 24 years ago in 1994, the world economy looked very different than the digital economy we live in today. These changes necessitate a modernization of NAFTA to enhance the North American economy’s global competitiveness. However, given Michigan’s reliance on this agreement, any breakdown in negotiations could have widespread negative effects on the West Michigan economy. Working together, we must communicate the importance of a free and open cross-border trade policy. We have the opportunity to make a good agreement even better and align NAFTA to new economic realities. You can make your voice heard by contacting your respective industry associations and local chambers of commerce. For more information and a full version of the NAFTA update presentation by the Consul General of Canada inDetroit, please visit www.rightplace.org/events/nafta- update-luncheon .

Officials from the U.S., Canada, and Mexico are in the midst of renegotiating the free trade agreement that regulates the largest economic region in theworld. The outcome of these talks on the North American Free Trade Agreement (NAFTA) will have widespread effects on the global economy, but the largest impact may be felt right here in Michigan. The reliance of the state’s manufacturing and agricultural sectors on global trade and export markets make Michigan the number one state most-impacted by NAFTA. In fact, Michigan sells more goods to Canada than it does to its next nine largest foreign markets combined. West Michigan alone exports $5 billion under the agreement. For this reason, The Right Place recently hosted a luncheon where almost 200 local business and community leaders were able to hear an update on NAFTA from the Consul General of Canada in Detroit, Mr. Douglas George. Attendees also heard from a panel of several local business leaders affected by NAFTA, which was moderated by GrandValley StateUniversity’s Van Andel Global Trade Center.

NAFTA’S IMPACT ON MICHIGAN AND THE U.S. Mr. Douglas George’s keynote discussed the importance of NAFTA, which facilitates a trillion dollar trade and investment relationship between the U.S. and Canada. Nearly 9 million jobs in the U.S. depend on this trade and investment. 366,000 of those jobs are located in Michigan. These are quality jobs with higher wages, as export-related jobs are paid between 13 and 18 percent more than the national average. All of these jobs could potentially be at risk should the U.S. withdraw from NAFTA, which is why it is critical to come to a mutually beneficial partnership during these negotiations. According to >Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28

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