RPI Newsletter_Q1 2021

RPI Newsletter_Q1 2021

Quarter 1 - 2021

ALSO IN THIS ISSUE: PROJECT: PERRIGO COMPANY PLC NEW PRESIDENT &CEO OF THE RIGHT PLACE ANNOUNCED BUILDING AN INCLUSIVE WEST MICHIGAN

The Right Place 2021 Economic Outlook for West Michigan

TABLE OF CONTENTS

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14

CEO Update

Investor Spotlight Irwin Seating Company

Building an Inclusive West Michigan Inclusive Learning Lab with The Right Place & The Brookings Insitute

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Projects Perrigo Company PLC

Talent ReThink West Michigan has Record-Setting Year

Feature Article:

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Economic Outlook for West Michigan

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The Right Place Board of Directors Changes for 2021

Inside RPI

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Manufacturing Success Jireh Metal Products

New President & CEO of The Right Place Announced

Calendar of Events

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TABLE OF CONTENTS

CEO Update

To our investors and partners,

2020 was a year history will not soon forget. The COVID-19 pandemic brought unprecedented challenges and uncertainty to the region. Throughout it all, our community persevered and The Right Place remained a steadfast and trusted partner for business. During times of crisis like these, both communities and organizations are tested to their limits. Although the pandemic is not over, West Michigan has already proven itself a collaborative and capable community that can take on any challenge, no matter the severity. I amproud to sayThe Right Place has alsopassed the test. After all, ourorganizationwas built to guide West Michigan businesses through difficult times. This year our team rose to the challenge and assisted thousands of businesses both large and small through the pandemic, while also continuing our traditional economic development work. Those stories and more are detailed throughout this annual report. The achievements and resilience demonstrated this year showcase why it has been my privilege to lead this organization for over 33 years. When Jay Van Andel first created this organization back in 1985, we really were the little engine that could. Since then, we have generated over $5.1 billion in new capital investment and nearly 47,000 new and retained jobs for the region. It is amazing how far you can go with an extraordinary vision and commitment to success. The collaborative spirit and caliber of this community are second to none, and I am sincerely grateful for the dedicated commitment our partners and investors have shown The Right Place throughout my career. With your continued support, I am certain the next few decades will continue to build on the success of the past 33 years. As I close my career at The Right Place, I look forward to seeing what the future holds for West Michigan.

Sincerely,

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

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LETTER FROM THE PRESIDENT

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PERRIGO COMPANY PLC

State and local collaboration brings new Perrigo North American Corporate headquarters to downtown Grand Rapids

Governor Whitmer, The Right Place and their partners at the MEDC.” The Right Place worked closely with Perrigo, MEDC, Michigan State University, and other community partners to ensure the company continued its growth in the region rather than out-of-state locations in Chicago and Florida. With the approval of a $2MMichigan Business Development Program performance-based grant, the MEDC is supporting the expansion through the Michigan Strategic Fund. “Since 1996, Grand Rapids has been investing in its now world-renowned health industry cluster focused on improving the lives of consumers and patients,” said Birgit Klohs, President & CEOof The Right Place, Inc. “TheMedical Mile is a thriving hub for research and innovation and Perrigo’s decision to establish its North American Corporate Headquarters here further solidifies the MedicalMileandDowntownGrandRapids as a destination for business success.” West Michigan’s life science and medical device industries are growing at a considerable rate of 18.5%, outpacing the national average by more than double its growth rate of 9%. “The decision by Perrigo to establish its North American Corporate Headquarters in Grand Rapids underscores the strength of Michigan’s business climate and our talented workforce,” said Governor Whitmer, “This is great news for Michigan workers, their families, and our economy as we continue to move forward with economic recovery and growth here in our state.” For more information on Perrigo, visit www.perrigo.com

Global self-care provider, Perrigo Company plc, has recently announced that it will establish new North American Corporate Headquarters indowntownGrand Rapids. In addition toa capital investment of $44.7 million over the 15-year period of the lease, the expansion will bring more than 170 new jobs to the area. Founded in 1887 in Allegan, Mich. Perrigo is a leading global provider of quality, affordable self-care products. The company, which employs more than 4,000 people in West Michigan and 11,000 globally, has local operations in Grand Rapids, Holland and Allegan. The new office will be constructed within Michigan State University’s Grand Rapids Innovation Park being developed and built under a public-private partnership model in a joint venture between Rockford Construction and Walsh Construction at 430 Monroe Ave NW, Grand Rapids, on what is known as the Medical Mile. The 63,550 square foot office space will primarily house corporate and functional leadership and certain administrative roles and will feature adaptable workspace to promote collaboration opportunities. “Perrigo established its roots in West Michigan more than 130 years ago. Since then, we’ve become an industry leader and created thousands of jobs in the region,” said Murray Kessler, President and Chief Executive Officer, Perrigo. “We are excited to continue our growth surrounded by organizations that share our passion for self-care in the heart of a thriving city. We are thankful for all of those involved in making this project a reality, especially

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2020 ECONOMIC SUCCESS STORIES

THE RIGHT PLACE BOARD OF DIRECTORS CHANGES FOR 2021

• Patrick Greene, President, Cascade Die Cast Group Inc. (The Right Place/The Center-West Manufacturers Council representative, two-year term)

Five new board members have been appointed to the 2021 Right Place board of directors, and The Right Place accepted the retirement of five others. In addition, the board elected the following officers:

OFFICERS FOR 2021:

• Tony Sarsam,

• Chair: Sean P. Welsh, Regional President, Western MI, PNC Bank

President & CEO, SpartanNash

• Darrel Schmalzel, City Manager, City of Walker (Suburban representative, two-year term)

• Vice Chair: Tina Freese Decker, President & CEO, Spectrum Health

• Treasurer: Dr. Bill Pink, President, Grand Rapids Community College

RETIRING FROM THE BOARD OF DIRECTORS:

• Dave Beemer, Chief Operating Officer,

Terryberry (The Right Place/The Center-West Manufacturers Council representative, two- year term)

EXECUTIVE COMMITTEE APPOINTMENTS:

• Norman J. Beauchamp Jr., ExecutiveVicePresident forHealthSciences, Michigan State University

• Dennis Eidson, Chairman, SpartanNash

• Dr. Philomena Mantella, President, Grand Valley State University

• Anthony Gagliardo, Building/Code Official, Lake County Building Department

• Jim Teets, Chairman and CEO, ADAC Automotive

• Mitch Joppich, Managing Partner, PwC

NEW APPOINTMENTS TO THE 2021 BOARD OF DIRECTORS:

• Luke Cherveny, Grand Rapids Office Managing Partner, Tax Reporting & Strategy Partner, PwC • Jeffrey Connolly, Senior Vice President & President, West Michigan & Upper Peninsula, Blue Cross Blue Shield of Michigan

• Greg Madura, Supervisor, Alpine Township (Suburban representative, two-year term)

To view the complete list of The Right Place board of directors, please visit www.rightplace.org/board

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2021 BOARD OF DIRECTORS

thecenterwest.org

The Michigan Manufacturing Technology Center-West (The Center-West) has launched a new website to create a more seamless experience for West Michigan manufacturers seeking to develop stronger operations, drive innovation, promote excellence and achieve greater profitability. From the executive office to the plant floor and the shipping docks, The Center-West's solutions have provided proven, measurable results to hundreds of manufacturers over the course of the last 30 years. Browse the new site now to learn more about the extensive selection of products and services to meet your business’ unique needs.

No Cost Assessments

Operational Excellence

Industry 4.0

Leadership & Culture

New President & CEO of The Right Place Announced

Birgit leaves such big shoes to fill. She built a foundation that will continue to drive significant growth and business attraction in our region.” Over her 33-year tenurewith the organization, Klohs earned a national reputation as a leading economic development strategist. She collaborated with public and private entities at the local, state and national levels on transformational projects including expansion of the Michigan State University College of Human Medicine to Grand Rapids, establishment of the Manufacturers Council and, most recently, the launch of the New Communi ty Transformation Fund, which aims to increase business ownership and support multi-generational wealth creation within historically disadvantaged groups. “I have been honored toserveTheRight Place and this community over the past 33 years. It’s been a true privilege to do so alongside many dedicated business and community leaders,” said Klohs. “I look forward to welcoming Randyback toWestMichigan, and I wish him, the board and the organization all the best for continued success.” Under Klohs’ leadership, The Right Place helped to create or retain 47,000 jobs and spur over $5.1 billion in new regional investment. “Birgit’s legacy can be seen in the economic vitality of this region. Especially now, as this worldwide pandemic highlights our need to be creative, bold and to plan for the future, the foundation The Right Place has built over the past 35 years puts us on very solid ground. We’re confident that Randy will continue moving us toward an even more successful future,” said Tina Freese Decker, The Right Place Board treasurer and president & CEO, Spectrum Health.

Prior to joining the Downtown Denver Partnership, Thelen led economic development for the Greater Omaha Chamber. While there, he led a two- state, eight-county regional economic development effort and executed a $24 million “Prosper Omaha” strategy which brought $3.9 billion in new capital investment and 13,000 new jobs to the area. Omaha was recognized by Site Selection magazine as the top performing economic development region (pop. 200k-1MM) three years out of Thelen’s four-year tenure with the chamber. A Michigan native, he began his career at economic development organizations in EvartandMonroe,Michiganandmoved from there totheMichiganEconomicDevelopment Corporation. His responsibilities at the MEDC included leading the statewide Site Location Services Unit and leading the urban redevelopment projects program in cities including Detroit, Flint, Saginaw and Benton Harbor. From there he was hired as the first president of Lakeshore Advantage, the economic development organization for Allegan and Ottawa Counties. During his 10-year tenure, he led attraction of $1.2 billion in investments and 8,000 jobs. The Right Place is known throughout the country and around the world for its innovative public-private partnerships, collaborative industry councils and community leadership and engagement. It’s that reputation along with West Michigan’s increasingly diverse industry sectors, growing economy and high quality of life that drewThelen to the organization. “The board is really looking forward to working with Randy,” said Welsh. “We put a lot of effort into this search because

After a national search that produced an extraordinarily talented pool of candidates, The Right Place Board of Directors selected Randy Thelen to serve as the new President and CEO of the organization. Thelen, who has 25 years of experience in the industry, will take the helm of the regional economic development organization after serving as senior vice president of economic development at the Downtown Denver Partnership. There he led efforts to attract investment, recruit and retain business, and advocate for housing, retail, and public policy initiatives. He supported downtown projects totaling more than $1 billion in investments and oversaw The Commons, an award-winning entrepreneurial center serving over 15,000 people each year, with over 70% of program participants from traditionally under- represented populations. “I am thrilled to be chosen to lead The Right Place. West Michigan is home. To lead the economic development efforts of a region I love is the opportunity of a lifetime,” said Thelen. “I look forward to working with a broad base of stakeholders committed to continue the economic progress and prosperity of the region.” He will start the job on March 1, 2021. “Randy will help us write the next chapter for The Right Place and West Michigan. Continuing to tell our story to business leaders and job providers around the world is so important in a very competitive market. I’m confident that he’s the right person to continue building our significant accomplishments,” said Sean Welsh, The Right Place board chair and regional president, Western Michigan, PNC Bank.

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NEW PRESIDENT & CEO

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NEW PRESIDENT & CEO

A fter the Great Recession, Grand Rapids experienced a great recovery. Our mid-sized city outperformed numerous economic metrics, climbing to the top of ranking lists and expanding at an impressive rate. Some of those top rankings included: #1 Mid-Sized Metro for EconomicGrowthPotential, America’sHottest Zip Code, and #1 City to Raise a Family. Unfortunately, that newfound prosperity was not shared by all. Less impressive are the rankings that did not get the same attention as the aforementioned ones: second worst metro in the U.S. for African Americans to succeed economically, #109 out 150 cities in the U.S. for single mothers to have ample job opportunities and earn a livable income while their children receive the best and most cost-effective care, and #101 out of 190 U.S. cities for Hispanic entrepreneurism.

of automation, while simultaneously being themetrowith the4thhighestexposure toAI. Ensuring that employees in low skill occupations have pathways to continue professional development and growthwill be critical to attaining solid labor force participation rates and ensuring that no demographic is disproportionately left behind as Industry 4.0 continues to transformthe landscapeof work as it is today. CHANGING DEMOGRAPHICS The Grand Rapids MSA is also undergoing a demographic transformation. Our labor force is aging, and individuals ages 65 and older will soon take up a larger share of our total population than we’ve seen in the past. It is projected that the share of working age individuals in our MSA will decrease from 62% (2017) to 56.8% by 2045. Ourcommunity isalsobecoming increasingly diverse. By 2045, the Grand Rapids MSA is expected to see 130% growth in the size of our population of Hispanic ethnicity, 45% growth in the size of our Black population, and 142% growth in the size of our other racially diverse populations.

In present day, Grand Rapids faces imminent challenges as industrial transformation, demographic transition, and the COVID-19 recession continue to impact all areas of our economy. As West Michigan’s leading economic development organization, The Right Place is committed to driving sustainable economic growth and shared prosperity for all in the Greater Grand Rapids Region. In partnership with the Brookings Institution, The Right Place had the privilege of joining a cohort of cities across the country to participate in Brookings’ Inclusive Learning Lab to identify and explore the barriers that threaten to erode the competitiveness of our regional economy. THE AUTOMATION DISRUPTION Our region has many lower skill occupations that could be significantly affected by automation and artificial intelligence (AI). Out of 100 of the top metropolitan areas in the U.S., the Grand Rapids MSAwas found to be the 7th most vulnerable to the effects

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INCLUSIVE LEARNING LAB

EDUCATION GAPS High School Graduation Rates • Black: 59.8% • Latinx: 71.5% • White: 85.7% Bachelors Degree or Higher

INEQUITABLE LABOR MARKET OUTCOMES Average Monthly Earnings – Grand Rapids MSA

White Alone

Hispanic or Latino Black or African American

$4,287

$4,287

$4,287

$4,287

$4,287

$4,287

• Black: 18.6% • Latinx: 13.8% • White: 34.8%

All Industries Manufacturing

Figure 1

Source: U.S. Census Bureau, Center for Economic Studies, LEHD

investment, and quality of life for more of our community members. The result will allow businesses to recruit more qualified people, become more competitive, allow for more expansion, and create a growth cycle that is productive, resilient, and equitable. Within our work, The Right Place will focus on three strategic pillars: helping companies create quality jobs and pathways to talent development resources, diversifying the pipeline of business ownership through growth of existing businesses and support for acquisitions, and continuing to produce research and convene our partners around a shared vision for the future of our regional economy.

Black and Hispanic residents were not only heavily impacted by the Great Recession, but in the 10 years after, the incomes of Black residents had not recovered. This led to explosive growth of the racial wealth gap, exacerbating the problem ten-fold. Without proactive intervention, weexpect to see similar >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

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