Innovation + Job News

By: Deborah Johnson Wood

At a time when technology firms are downsizing, one Grand Rapids company is expanding three of its service areas and hiring employees and contractors. OST – recently named one of the Michigan 50 Companies to Watch – attributes the hiring of 11 employees last year and a projected eight new jobs and 10 contractor positions this year to the company's growth momentum.

"Given the economy, our revenue numbers are down because hardware and software sales are down," says Dan Behm, president. "Last year we did $33 million. Overall revenues will be down, but we'll still be able to maintain a decent profit. Services are up."

Because sales of software and hardware took a dive, OST leaders decided to turn up the heat under the company's three most promising service areas: IT security assessments, managed services and application development. And that push is generating jobs.

IT security is a CIO's biggest concern, Behm says. OST plans to grow its security division by 1200 percent, and that means attracting out-of-state clients. Behm plans to do that with the company's proprietary product SARA (Security Access for Remote Assessments), a high-tech product that clients simply plug into their IT systems.

"We build the team in Michigan and perform the assessments remotely by sending SARA to the location," Behm says. "All they do is plug it in. We present the results remotely as well; they just plug the projector into SARA and we do the presentation."

The push is on to expand two other service areas: managed services, where OST provides remote day-to-day administration of clients' IT systems, and application development for clients needing web sites, custom applications and the like.

OST currently has 46 employees and 40 contractors.

Source: Dan Behm, OST

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Deborah Johnson Wood is development news editor for Rapid Growth Media. She can be contacted at deborah@rapidgrowthmedia.com.

By: Deborah Johnson Wood

Stonecraft manufacturer PolyCem hopes to achieve better efficiency in its operations by consolidating its Grand Haven headquarters, Norton Shores research facility and Mississippi manufacturing plant into a renovated factory space in Norton Shores.

PolyCem will continue its manufacture of custom-crafted flexible concrete tiles for floor and wall applications at the new location, 1271 Judson. Universities, hospitals and hotels often use the tiles in high traffic areas. Containing 50 percent recycled glass, the product can be virtually any color, cut to any shape and imprinted with custom artwork.

"For designers trying to create a custom space for commercial or high end residential, we can customize whatever they need," says Jameson Goorman, president. "Depending on the market I suspect we'll hire between 15 and 30 in the next year, and could have as many as 115 employees in the future."

The company currently has four West Michigan employees and 42 in Mississippi, but will not relocate any of the Mississippi employees.

PolyCem plans to hire experienced and entry level chemical engineers, mechanical engineers, process engineers, printer operators and line workers.

"The number of skilled engineers available in West Michigan is astounding," says Goorman. "And we have supporting companies in the area. Any expertise we need we can tap right here – material moving is just 20 minutes away, a rigging company is across the street, and we have access to metal fabricators. All of that increases our efficiencies and improves quality."

According to a press release from the Michigan Economic Development Corporation, PolyCem will invest $5.6 million to relocate its manufacturing operations. The project received a Michigan Economic Growth Authority tax credit in April, valued at $791,333 over seven years. The City of Norton Shores approved a 10-year tax abatement of $9,600 annually.

Source: Jameson Goorman, PolyCem

Deborah Johnson Wood is development news editor for Rapid Growth Media. She can be contacted at deborah@rapidgrowthmedia.com.

Lakeshore Advantage announced this week that three startup technology companies were awarded $20,000 each in pre-seed funding as winners of the inaugural Momentum initiative. The initiative, a combined effort of Lakeshore Advantage and Grand Rapids-based Windquest Group, focuses on college age entrepreneurs and aims to spur innovation in the technology sector along West Michigan's lakeshore.

In addition to funding, the winners will participate in a 12-week intensive entrepreneur training program of workshops, coaching, speaker presentations and networking, and will have incubator space in the Lakeshore Advantage Business Garden, Zeeland. The program also provides one-on-one mentoring from members of the technology community and pro-bono legal and financial services, and business valuation counseling.

The winners are:

• Revetto – A social network and social media aggregator which enables communication between a variety of social platforms.
• Downstreams - Aggregates people’s online stories and streams (from blogs to tweets to pictures on Flickr) and returns the collected data.
• Public Collections - Provides an online outlet for small companies to collect unpaid invoices.

"The $20,000 is meant to cover living expenses for the summer and help them develop their beta applications," says Amanda Chocko, Lakeshore Advantage's director of entrepreneurial development. "They will have milestones they have to meet and the investments will be dispersed when they meet the milestones."

The students will live in Hope College's downtown Holland housing for the duration of the program.

At the close of the program, an Investor's Day will provide the winners with a chance to pitch their ideas to second-round investors.

In all, Momentum attracted 28 applications from students attending Hope College, Davenport University, Kendall College of Art and Design, Calvin College, Grand Valley State University, Michigan State University, University of Michigan, Michigan Tech, ITT Technical Institute, and Polytechnic Institute of NYU.

Source: Amanda Chocko, Lakeshore Advantage

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Deborah Johnson Wood is development news editor for Rapid Growth Media. She can be contacted at deborah@rapidgrowthmedia.com.

By: Deborah Johnson Wood

A new scholarship program between Grand Valley State University and Hospice of Michigan guarantees selected nursing students in the college's accelerated second degree program a two-year full-time job with Hospice after graduation. The scholarship pays 100 percent of the students' tuition, a stipend during the semester and provides a preceptorship with Hospice.

"We've been in conversations with Hospice for a year," says Cynthia McCurran, dean of GVSU's Kirkhof College of Nursing (KCON). "We brainstormed about what this would look like. We knew we'd draw from the second degree program for spring/summer semester."

Jordan McAskin, a Grand Rapids resident, recently received the first scholarship. McAskin has a bachelor's degree in biomedical sciences and psychology, and starts KCON courses in May.

After the graduation, McAskin must pass the registered nurse licensure exam and then fulfill a two-year agreement to work as a full-time nurse for Hospice. The position offers a competitive salary and full benefits package.

"The accelerated program is a very rapid, intense format for 12 months," McCurran adds. "Students are completely immersed, so it's very hard to work at job outside of going to school. One of the biggest challenges is having the financial resources to do it, so the opportunity to get a stipend is very, very helpful."

Dottie Deremo, president and CEO of Hospice of Michigan, proposed the scholarship idea last fall. Deremo is a former nurse who saw the need to add a stipend to the scholarship to provide support to the scholarship student.

Source: Cynthia McCurran, Grand Valley State University Kirkhof College of Nursing; Hospice of Michigan

Deborah Johnson Wood is development news editor for Rapid Growth Media. She can be contacted at deborah@rapidgrowthmedia.com.

By: Deborah Johnson Wood

Of the 50 dynamic companies honored in this year's Michigan 50 Companies to Watch list, five of them are generating jobs and revenue in West Michigan.

The five companies are All About Learning Inc., Sparta; Alternative Mechanical LLC, Grand Rapids; Flow-Rite Controls Ltd., Byron Center; OST (Open Systems Technologies), Grand Rapids; and ThinkWise Inc., Grand Rapids.  The companies received honors on April 30 during a special awards ceremony in Lansing.

Combined, all 50 Michigan companies contributed amazing investments during the four years leading up to the current economic turmoil: $1.1 billion in revenue (126 percent increase) and added more than 700 employees (87 percent increase).

In 2008 the 50 firms generated $405 million in total annual revenue – a $99 million increase in total annual revenue – and created 296 new jobs.

In addition, for 2009 the 50 companies predict a 35 percent revenue jump and 23 percent growth in employees.

The West Michigan companies, alone, predict the creation of some 14 jobs by the end of 2009.

The purpose of the awards is to recognize second stage businesses that are doing good work today and setting themselves up for growth, says Joy Kitamori, program production manager with Cassopolis-based Edward Lowe Foundation.

Also considered are emotional intelligence factors: are the companies good to work for, are they good partners to other CEOs and other companies, and a range of features that might make a company tick.

Nominees undergo a rigorous application process that documents employee counts, gross revenues for the previous three years and the current year (2008), the projected year (2009). They also must provide detailed answers to open ended questions, including, what makes them a company to watch, and they must detail their philanthropy, how they use technology and innovation, and what makes the company culture unique. A panel of eight judges determines the 50 winners.

The Edward Lowe Foundation received 157 applications for the 2009 awards.

Source: Joy Kitamori, T.J. Becker, The Edward Lowe Foundation

Deborah Johnson Wood is development news editor for Rapid Growth Media. She can be contacted at deborah@rapidgrowthmedia.com.

By: Deborah Johnson Wood

A $6.5 million investment in the Grand Rapids' Women's Health Center of West Michigan (WHC) brings Metro Health's services into the mainstream of the Medical Mile – the first time the health care system has established a presence in downtown Grand Rapids.

Construction of an outpatient surgical center, an office for specialists who desire a presence in the WHC and a boutique coffee shop/café is underway, with completion slated for August.

The 17,000-square-foot surgical center features three operating rooms for same-day procedures, such as, orthopedic and podiatric operations and gynecological and urological surgeries.

"We anticipate offering ownership opportunities to 30 to 40 surgeons who will have 49 percent ownership in the surgical center," says Brian Jepson, Metro Health COO. "The planning has been done through a steering committee primarily of surgeons. Any surgeon, regardless of their hospital affiliation, can apply for credentialing."

A variety of medical specialists who want to tap into the WHC's coordinated one-stop-shopping process for their patients can sign on to share an additional 2,600-square-foot space.

"They can come in the building on as-needed basis to see patients," Jepson says. "We're trying to expand our specialty care in women's health care in the building."

The coffee shop/café will be open to the public, and, Jepson says, the ideal place for visitors to log onto the Internet while waiting for a family member to get out of surgery or a doctor appointment.

Jepson estimates the three projects will create some 25 jobs, including office management, clinical, clerical and support services positions.

Source: Brian Jepson, Metro Health

Deborah Johnson Wood is development news editor for Rapid Growth Media. She can be contacted at deborah@rapidgrowthmedia.com.

By: Deborah Johnson Wood

The West Michigan Science &Technology Initiative recently leased 6,500 square feet of laboratory space to expand its Venture Center incubator, and half of that space is dedicated to medical device development.

WMSTI seized the opportunity to develop lab space at 1345 Monroe NW, space vacated by Spectrum Health's diagnostic laboratory when it relocated to the Lemmen-Holton Cancer Pavilion. New incubator tenants will have access to individual labs ranging from 300 to 1,500 square feet.

"We're sort of establishing sub units that have individual doors and security, and that will help residents maintain confidentiality of product development and make their space their own," says Linda Chamberlain, executive director.

"We've been talking to companies about how to set up the space for medical device development. Residents will have everything they need to take a product from development to producing the prototype, and we're now showing the space to several interested parties."

WMSTI bases lab lease rates on a sliding scale. Participating companies must agree to remain in Kent County after leaving the incubator.

Besides access to expensive testing equipment many startups can't afford, tenants will have access to WMSTI's virtual company alliance, which includes experts in business law, intellectual property law and marketing services.

"We view incubation as a community asset, and want to help develop businesses that are growing up and growing out and creating jobs, and businesses that are a value to our community," Chamberlain says.

According to information supplied by the WMSTI, since 2003 the original Venture Center in Grand Valley State University's Cook-DeVos Center for Health Sciences has housed 12 companies, created 650 high-technology jobs in West Michigan and generated over $100 million in investment.

Source: Linda Chamberlain, West Michigan Science & Technology Initiative; David Buckalew, Rebecca Howe, Lambert Edwards & Associates

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Deborah Johnson Wood is development news editor for Rapid Growth Media. She can be contacted at deborah@rapidgrowthmedia.com.

By: Deborah Johnson Wood

On May 12, Saint Mary's Health Care will perform the first surgery of its inaugural bariatric surgery program. The program is a partnership between Saint Mary's, Grand Health Partners and Advantage Health Physician Network -- a comprehensive program offering surgical and non-surgical weight loss options and follow-up care for obese patients.

"One of the difficulties in weight loss surgery is it's supposed to be a lifelong relationship with the patient, but 50 percent of patients stop seeing their bariatric surgeon after they have the surgery," says Dr. Paul Kemmeter, medical director of the bariatric program and a founding partner of Grand Health Partners. "We need to monitor that they're getting their nutrition."

Between 10 and 20 percent of bariatric surgery patients gain back the weight, and that's where Advantage Health's Weigh to Wellness program can help patients with intensive dietary and nutritional courses, behavioral counseling, medication and exercise, says Kemmeter.

Dr. Kimberly Turke, head of the Weigh to Wellness program, says they are still working out how patients will move through the program. The key, Turke says, is to create a process that will enable patients to develop comfortable, trusting relationships with their doctors so patients have the greatest chance for successful and lasting weight loss.

The development of the program created a bariatric coordinator position that Saint Mary's filled with a bariatric certified nurse (BCN).

Grand Health Partners, who also perform bariatric surgeries at Spectrum Health, will add three new jobs this year: bariatric surgeon, physician's assistant and an administrative position.

Kemmeter offers four types of bariatric surgery, including lap banding and duodenal switch. He performs most surgeries via laparoscopy, thereby minimizing pain and reducing recovery times.

Some 25 million U.S. residents are morbidly obese, Kemmeter says. He expects to perform 150 surgeries at Saint Mary's by year's end.

"We hope to help more patients regain a healthier life," he adds.

Source: Dr. Paul Kemmeter, Saint Mary's Health Care, Grand Health Partners; Dr. Kimberly Turke, Advantage Health Weigh to Wellness

Deborah Johnson Wood is development news editor for Rapid Growth Media. She can be contacted at deborah@rapidgrowthmedia.com.

By: Deborah Johnson Wood

It's been about four months since ContextMG relocated from Saugatuck to Grand Rapids, and already the firm has added five jobs and plans to add three interns. At the time of the move to 44 Grandville SW, the company expanded its offices to 3,600 square feet.

"We've totally filled the whole place," says Brian Steketee, a partner in the business with David Greiner. "When we first moved in we knew we had some flexibility in the building and we've positioned ourselves to handle the growth."

That growth has been 100 percent since the firm's inception in November 2007, and Steketee says it's on track for 20 percent growth this year having picked up three new Grand Rapids clients.

ContextMG added a vice president of program development, a web developer, a senior art director and a director of business development. An account coordinator and three interns will join its ranks this summer.

"The permanent positions are real key growth positions for us," Steketee says. "When we put our business plan together we determined what we wanted to be when we grew up, and as we've added clients we've had more and more need for more resources. This will help position us for the next couple of years in preparation for adding more business to the roster."

The company offers business to business and business to customer marketing, and "two way conversation" for clients who want to engage in social media marketing. In the last year, Steketee says ContextMG added a suite of proprietary and non-proprietary tools that measure and monitor any kind of pick up in the marketplace, including blogs and web articles.

Source: Brian Steketee, ContextMG

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Deborah Johnson Wood is development news editor for Rapid Growth Media. She can be contacted at deborah@rapidgrowthmedia.com.

By: Deborah Johnson Wood

PAETEC, a national data and communications company, announced the expansion of its wireless data backup services in West Michigan. The company will create about 100 technical and sales jobs nationwide by the end of 2009; some of those will be in West Michigan, provided the push to expand services generates the growth company leaders expect.

Last year, PAETEC merged with McLeod USA to create the seventh largest local telephone company in the country with revenue of $1.6 billion and 47,000 mid- to large-sizes business customers in 82 cities. The company has 3,700 employees including 10 in its Grand Rapids office.

"PAETEC has about a 3.4 percent market share in the eastern U.S., and McLeod has about 1.6 percent in West Michigan," says CEO Arunas Chesonis. "If you look at our opportunity to grow our West Michigan business to match what we've done on the East Coast, we're looking at significant growth."

The company recently added another sales account manager to help generate that growth.

Chesonis says the push to attract large health care systems and other industries with PAETEC's wireless data backup services is underway.

"In the last couple of years we bought a wireless company, and now we're building the antennas, mounting them on clients' rooftops and bypassing the fiber and copper network on the ground," Chesonis says.

Source: Arunas Chesonis, PAETEC; Nick Wasmiller, Seyferth & Associates

Deborah Johnson Wood is development news editor for Rapid Growth Media. She can be contacted at deborah@rapidgrowthmedia.com.

By: Deborah Johnson Wood

Today the West Michigan Strategic Alliance (WMSA) and the Detroit Regional Chamber launched an initiative to create 25,000 new internships statewide by 2013, including 3,000 new internships in West Michigan by 2012. The initiative, Intern In Michigan, is the largest intern initiative in the state.

The goals are to provide an online hub to connect students looking for internships with employers who have internship programs and vice versa, to help employers establish internship programs, and to retain young talent in Michigan through internships that develop into permanent jobs.

"There's a quote from the National Association of Colleges and Employment that says that in 2008 50.5 percent of interns converted to full time employment with the company they interned with," says Cindy Brown, WMSA internship initiative project manager.

"Retaining college grads is a lot easier than attracting them from somewhere else and it's a way for employers to evaluate a prospective employee at their organization. They can then fill positions with interns that they're interested in."

In addition, WMSA provides support for employers and students. In February, WMSA launched its Employer's Internship Toolkit to help employers develop internship programs or enhance programs already in place.

Brown says she will personally help any employer or student who needs it, as will the initiative's regional advisory committee – made up of colleges, universities and employers who have internship programs.

"The more we can sit down with an employer and work with them, the more they'll understand how an intern can assist their businesses and the better program will be," Brown notes. "As for students who land internships, they learn on-the-job business etiquette and the culture of an organization. They also get to see how a corporation works and can build a résumé while gaining tangible work experience."

Source: Cindy Brown, West Michigan Strategic Alliance; Tim Penning, Penning Ink

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Deborah Johnson Wood is development news editor for Rapid Growth Media. She can be contacted at deborah@rapidgrowthmedia.com.

By: Deborah Johnson Wood

American Seating recently received its first orders for hundreds of bus seats, and according to one company official it's just the beginning. Those orders will eventually mean dozens, perhaps hundreds, of new jobs for the Grand Rapids-based manufacturer.

The city of Santa Monica, Calif. Big Blue Bus transit system ordered 16 new hybrid buses, six of them funded by federal stimulus money. In turn, bus manufacturer ElDorado National ordered the seats from American Seating.

"Every 100 buses ordered will create eight to 16 fulltime-equivalent American Seating positions for a year," says David McLaughlin, VP and general sales manager. "The stimulus package earmarked $8 billion for public transportation, which has to be obligated between now and March 2010. There is going to be a pretty healthy stimulation of the bus building atmosphere in America. It could be about 1,000 buses, is my guess."

McLaughlin says transit ridership in North America has experienced double digit increases due to green initiatives, an upsurge in urban living, and families downsizing to one car. In addition, some major transit authorities replace buses every 10 to 12 years, which means years of manufacturing to fill the orders.

"We're looking be very strong over the next 10 to 12 years, and it's a good place to be," McLaughlin says.

Big Blue Bus wants American Seating's Insight Seat, the widest bus seat in the world. American Seating developed the seat in response to a customer survey citing a need for more comfort and improved aesthetics.

"We thought seating needed to last forever and be maintenance free," McLaughlin adds. "We developed the Insight and started manufacturing in fall 2006. A mere two and a half years later it's between 35 percent and 40 percent of our business."

Source: David McLaughlin, American Seating; Molly Klimas, Intent Public Relations

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Deborah Johnson Wood is development news editor for Rapid Growth Media. She can be contacted at deborah@rapidgrowthmedia.com.

By: Deborah Johnson Wood

Nine months ago the obstetrics/gynecology practice Grand Rapids Women's Health moved into the Women's Health Center of West Michigan, a new construction project that members of the practice spearheaded. Since moving in, the practice has attracted some 180 to 200 new patients that have been served by additional staff.

"We've added two new physicians and each of them will have about three support staff of a nurse, a scheduler and a support biller. They'll start later this summer," says Dr. Adam Blickley, OB/GYN. Blickley was on the ground floor of planning and developing the Women's Health Center, 555 Mid Towne NE. "We're also continuing to expand the scope of services that we offer for women to achieve our goal."

Those services include prenatal and obstetrical care, gynecologic specialties, surgeries and surgical care and clinical research. A specialty division of the practice is the Female Pelvic Medicine and Urogynecology Institute of Michigan, which treats conditions including incontinence, Interstitial Cystitis and pelvic pain.

Earlier this week, the Women's Health Center installed a lighted sign on the building, overlooking the I-196 expressway east of College to mark the first nine months since completion of the building.

"Patients are impressed with the facility, its central location and ease of access, and they like having ancillary services such as mammography, a lab and physical therapy on site," Dr. Blickley adds.

Source: Dr. Adam Blickley, Grand Rapids Women's Health; Sally Littlefair Zarafonetis, Sally Zara Public Relations

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Deborah Johnson Wood is development news editor for Rapid Growth Media. She can be contacted at deborah@rapidgrowthmedia.com.

By: Deborah Johnson Wood

Two nationally renowned senior bioscience researchers will leave prestigious positions to lead research at the Michigan State University College of Human Medicine, Spectrum Health and Van Andel Institute in Grand Rapids.

John Risinger, Ph.D., comes aboard as director of gynecologic oncology research at the MSU medical school, and as director for tissue biorepository at Spectrum Health. His experience includes directing the women’s cancer program at Memorial University Medical Center in Savannah, Georgia, and research at the Laboratory of Biosystems and Cancer at the National Cancer Institute and at the Laboratory of Molecular Carcinogenesis at the National Institute of Environmental Health Sciences.

Jack Lipton, Ph.D., joins the Grand Rapids life sciences community as chair of translational science and molecular medicine for the College of Human Medicine. He will recruit a team of neuroscientists focused on researching Parkinson’s disease. Dr. Lipton leaves his position as professor and director of the division of neuropharmacology at the University of Cincinnati College of Medicine.

"These are people at the top of their field who have choices to conduct their research anywhere," says Jeffrey Dwyer, associate dean for the College of Human Medicine. "The Van Andel Institute is among the best research facilities in the country in terms of its design and that was a huge attraction for them. The tremendous research and scientists already here are also huge attractors."

Both doctors bring with them research that's in process and federal funding for that research.

Area life sciences leaders anticipate these two appointments will generate widespread interest in the region as a bioscience research hub, and could, in turn, attract some 25 experienced researchers to the region. Each of those researchers will require between three and seven assistant researchers in their laboratories.

Source: Jeffrey Dwyer, Michigan State University College of Human Medicine

Deborah Johnson Wood is development news editor for Rapid Growth Media. She can be contacted at deborah@rapidgrowthmedia.com.

By: Deborah Johnson Wood

Mercantile Bank in Grand Rapids might be the first in Michigan to offer deposit at home services to clients with personal accounts. The service, launched on April 13, enables clients to deposit checks without have to take the check physically to the bank.

Clients scan the check into their computer, and then log in to the Mercantile Bank web site to send the scanned image to the bank. The bank records it as a deposit and sends the scanned image to the originating bank for payment. The client making the deposit prints a deposit receipt and keeps the check until the deposit clears the bank and they've reconciled their account.

"A similar service has been available to businesses for a while," says Michelle Shangraw, retail banking director, "but they need a sophisticated scanner that handles a high volume of checks. A lot of people will go for a week with a birthday check or another check in their pocket. With Merc@Home Deposit (www.mercdeposit.com) they can make the deposit from home and get it into the bank sooner."

The service could also be a convenient solution for micro businesses that have a few check deposits a month.

Mercantile Bank also launched MercMobile, enabling cell phone users to pay bills, transfer funds, check account balances, and more, using a smart phone with Internet capabilities.

"We want to package convenience for our customers and offer them innovative products and ways to do business easily," says John Schulte, CIO. "We worked with an existing vendor partner, keeping an eye on this technology and getting it ready for market. We believe we're the only bank in Michigan to offer this on the personal banking side."

Mercantile Bank offers both new services at no charge.

Source: Michelle Shangraw, John Schulte, Mercantile Bank; John Zimmerman, Seyferth & Associates

Deborah Johnson Wood is development news editor for Rapid Growth Media. She can be contacted at deborah@rapidgrowthmedia.com.