119

ANNARBORAnn Arbor SPARK will advance the economy of the Ann Arbor region by establishing it as a desired place for innovation, business location and growth, and for talented people to live and work. The Ann Arbor region will be recognized for its academic, business, and community resources, and its collaborative culture. For more information visit:www.annarborusa.org

QUARTERLY ECONOMIC DEVELOPMENT REPORTS 2021

8 COMPANIESVISITED

Economic Development Council of Livingston County

REFERRALSPROVIDED

SMALL BUSINESSES IN LIVINGSTON COUNTY

COVID-19 BUSINESS RELIEF: SURVIVAL GRANT

34

74

$800k GRANT FUNDS DISTRIBUTED TO

2

COVID-19 ResponseThe Economic Development Council of Livingston County maintains a close relationship with private sector industry and localgovernment to provide referrals and services that promote economic growth. We recognize the extreme and dire impact COVID-19 hashad on the small business community. At this time, the EDCLC and Ann Arbor SPARK are diligently working on immediate efforts wherewe can be the most effective and helpful to assist our clients and communities through this crisis.

Michigan Small Business Survival Grant

EDCLC Q1 REPORT

The Michigan Small Business Survival program, funded by the MEDC was the third relief grant program for smallbusinesses established in response to businesses experiencing COVID-related distress. This program prioritized businessesthat were impacted by the “Gatherings and Face Mask Order” greatly impacting restaurants and other service businesses.Ann Arbor SPARK administered this funding for Washtenaw and Livingston counties. Similar to the two previous grants, alocal review committee was convened in Livingston County to review applications and determine grant recipients.

The demand for funding through the program was overwhelming. The need far exceeded the funds available. More than300 companies in Livingston County applied for the limited amount of funding available. Nearly $5 million in need wasrequested compared to the $820,000 in grant funding available to disperse in Livingston County. The local reviewcommittee provided 78 businesses with relief funding through this program and were able to provide funding to fouradditional companies from the Small Business Assistance Fund created in 2020 to support Livingston businesses usingproceeds from the sale proceeds of #LoveLivCo apparel as well as private donations.

For more information, visit a2spark.org/MichSurvival.

The University of Michigan’s Research Seminar in QuantitativeEconomics (RSQE) is an economic modeling and forecasting unitthat has been in operation since 1952. SPARK commissioned thisteam to produce a forecast of the Livingston County economy forthe next few years. The results of the forecast report waspresented April 13, 2021. SPARK, along with Livingston Countyhosted Dr. Donald Grimes and Dr. Gabe Ehrlich with the RSQEteam to present the findings of this inaugural report for thecounty.

The compiled data portrays the county economy’s historical trendsalong with a forecast for various economic indicators, coveringthe years 2021–2023. The forecast includes projections ofemployment levels by sector, the county’s unemployment rate,local inflation, as well as real wages.

To read the full report visit www.a2spark.org/livcoreport

3

Ann Arbor SPARK launches statewide program

Livingston County Economic Forecast Report

The Michigan Economic Development Corporation (MEDC) willpartner with Ann Arbor SPARK to launch the Michigan STEMForward internship program on a statewide level. SPARK has runthe program on a local level with a decade of positive results.

In scaling the program up, MEDC will work in partnership withSPARK to place 425-450 STEM students currently attendingMichigan colleges annually into STEM-focused internshipsthroughout Michigan. With the support of a $1.5 million grantapproved today by the MSF Board, SPARK will contribute to 50percent of the interns’ pay, and participating companies will paythe remaining 50 percent. SPARK staff is reaching out to variousemployer groups in Livingston County to promote this program andgive businesses the opportunity to participate in the program andplan for future internship opportunities.

Livingston Highlights

EDCLC Q1 REPORT

The state awarded 14 Livingston businesses with training grantstotaling approximately $526,000 for the 2021 fiscal year throughthe Going Pro Talent Fund. Ann Arbor SPARK worked closely withMichigan Works Southeast to promote the program to Livingstonbusinesses, with a focus on employee training and certification topromote job growth and employee retention.

The Going Pro Talent Fund awarded more than $39 million ingrants across the state to help train nearly 30,000 workers to gainindustry recognized credentials and grow in their career throughlearning new skills and securing stronger wages.

Grants were provided to businesses in multiple industriesincluding Thai Summit and Aludyne in manufacturing, TrilogyHome Health Venture and St. Joseph Mercy Livingston inhealthcare, and professional services including Boss Engineering.

Talent Training Funds Awarded Locally

“Put your Town on the Map” Pitch Competition

Consumers Energy Foundation hosted their 2nd annual communitypitch competition during the statewide Small Town and RuralDevelopment Conference held virtually April 13-14. TheFoundation sought to provide grant funds to support innovativeideas meant to energize a town and create momentum that buildsa stronger sense of community.

The Village of Pinckney and the Village of Fowlerville wereselected as one of the top ten projects to be presented and judgedduring the conference. Pinckney pitched the creation of acommunity garden in their downtown, and Fowlerville proposedcommissioning murals on select building sides within the DDA.

SPARK provided the two finalists with access to professionalvideo taping of their pitch presentation that was watched duringthe conference for live Q&A and judging. The Village of Pinckney’sproject won 2nd place and a $15,000 grant in support of thecreation of a community garden to be built in their downtown.

6

Local Dashboard

The local dashboard tracks demographic trends that are important measures of economic growth. Please note: this data does notreflect the impact of the COVID-19 Crisis as the data is in arrears. The data is compiled from a range of sources, including theBureau for Labor Statistics, the Census, the Livingston County Association of Realtors, and more. The trend arrow reflects the change inquarterly data, using the most recent data available. Timing of updates vary by source.

Q4 2020Michigan: 7.6%Livingston: 5.8%The unemployment rate in Livingston Countydecreased from 6.7% in Q3 to 5.8% at the endof Q4. This accounts for businesses opening back upthroughout pandemic. The local unemploymentrate remains lower than the stateunemployment rate.

Source: BLSLAUS

Q3 2020Michigan: $1,096Livingston: $926The average weekly wage in Livingston Countyremained largely the same from $924 in Q22020 to $926 in Q3 2020. The average weeklywage in Livingston County remains lower thanthe average weekly wage statewide.

Source: BLSQCEW

Unemployment

MFG Employment

Wages

Job Postings

LaborForce

Home SalesQ3 2020Michigan: 565,797Livingston: 9,574Employment in manufacturing increasedslightly by 1% in Livingston County from Q2 toQ3. Employment in manufacturing alsoincreased 1.0% statewide between during thesame period.

Source: BLSQCEW

Q1 2021Livingston: 9,061The total number of job postings in LivingstonCounty increased by 12% between Q4 2020and Q1 2021.

Source: Workforce IntelligenceNetwork

Q1 2021Livingston: 481The number of cumulative home sales inLivingston County decreased by 35% in Q12021 compared to Q4 2020 which recorded 730sales.

Source:LCAR

Q4 2020Michigan: 4,865,972Livingston: 102,872The labor force in Livingston County increasedby 1% between Q3 2020 and Q4 2020. Duringthe same time period, the labor force inMichigan decreased by 1%. The labor forceconsists of individuals working or seekingemployment.

Source: BLSLAUS

EDCLC Q1 REPORT

Metrics of success are recorded when SPARK assists projects that successfully create jobs and/or investment in the community.

SUCCESS METRICS

The Call Program is SPARK’s outreach program to local employers. Company visits aremade to build relationships, identify projects, and connect employers to communityresources.

CALL PROGRAM

SPARK Metrics

EDCLC Q1 REPORT

PROJECT PIPELINE

EDCLC Q1 REPORT

0Successful

Projects

0New Job

Commitments

0Capital

Investment

29Projects in Pipeline

2,331Potential New Job

Commitments

$868MPotential Capital

Investment

8Company Visits

1,564FTEs at

Companies Visited

13Referrals

Pipeline metrics track projects that SPARK staff are currently working to complete. If and when these projects are complete, they will contribute additional jobs and capital investment into the local economy.

The project pipeline January 1, 2021 – March 31, 2021

8

2021 Q1 Call Program

COMPANY NAME LOCATION

Q1 Hatch Stamping Howell Township

Q1 Corrigan Oil Company City Of Brighton

Q1 Pepsi Bottling City of Howell

Q1 Total Security Solutions Fowlerville

Q1 GKI Foods Green Oak Twp.

Q1 Cateriad, Inc. Genoa Township

Q1 Bryllan, LLC. Brighton Township

Q1 General Chemical Green Oak Township

EDCLC Q1 REPORT

9

Fundraising

EXPECTED PUBLIC SECTOR CONTRIBUTIONS

+ TOTAL $285,269.50

Livingston County $175,000

Municipal Partners $110,269.50

City of Brighton: $9,065.98; City of Howell: $6,799.49; Genoa Township: $23,283.09; Green Oak Township: $19,574.28; HamburgTownship: $20,604.50; Handy Township: $3,467.00; Hartland Township: $13,392.93; Oceola Township: $10,579.95; Village ofFowlerville: $5,000; Village of Pinckney: $2,500

EXPECTED PRIVATE SECTOR CONTRIBUTIONS

+ TOTAL $91,500.00

Asahi Kasei Plastics; Boss Engineering; Brighton Chamber; Chem-Trend; Consumers Energy; Corrigan; DTE Energy; Duncan Disposal;Elite Insurance; Era Griffith Realty; Financial Plus+ Credit Union; First National Bank; Hartland Insurance; Howell Chamber; IHA; ITCHoldings; Lake Trust Credit Union; Livingston Association of Realtors;; Lowry Solutions Inc; Rand Construction; Rudolph Libbe;Signature Associates; Thai Summit; Trinity Health

2021 EDCLC EXPENSES

+ Ann Arbor SPARK $91,757.00

+ Westlife Insurance $450.00

EDCLC Q1 REPORT

10

Regional Highlights

Sometimes, you must use a more well-known name when you’re doing business attraction. I remember doing some outreach to a European business attraction client early at my time at SPARK. We had done some outreach about connecting with Ann Arbor and Livingston County, and clearly the message wasn’t getting across. “Sure, I’d love to meet with Ann. Just let me know when” was the message back. Obviously, there was a disconnect between Ann Arbor, the place, and whoever the business owner thought “Ann” was.

We’ve often said that economic development works best when we do it in a “regional” way - this is true for the Economic Development Council of Livingston County, and it’s true for SPARK as well. One of the clearest ways that we work regionally to support economic development in Livingston County is through SPARK’s partnership with the Detroit Regional Partnership, a collaboration covering 11 counties in Southeast Michigan, from Monroe to Flint, to Wayne County. Their focus is clear - help get the region get in front of more business location opportunities, more “shots on goal” for attraction projects, and ultimately more investment in our region.

This is an activity that historically took place through the Detroit Regional Chamber but has recently been expanded and supported separately now into something called the Detroit Regional Partnership. They’ve done some great work in just the couple years since being stood up - doing some strategic work to identify what industries we should be competing for, developing story maps about the region (including Livingston’s assets), and helping respond to Response for Proposals (RFPs) from companies looking to locate a project.

In fact, companies looking for new location space have taken off since 2020, contrary to what you might expect. In 2017, for example, we responded to 2 business attraction projects considering Livingston County. That scaled to 9 projects - a ‘steady’ amount in both 2018, and 2019. But in 2020, we responded to 13 projects, an increase of 63%. And it’s stayed the same in 2021, with 8 projects already submitted in Livingston County just this quarter.

We realize the probability of winning all of these projects are low but securing just one can be a huge boon to the community. In fact, some of the largest single projects in SPARK’s history have come through an RFP process, so it’s something we take seriously in considering and responding to when possible.

Our partners at the Detroit Regional Partnership are critical in identifying those project leads, helping to identify potential property, and packing up a regional response. They help us get in front of more opportunities and develop relationships that can sometimes take years to help curate and develop before an investment occurs. And they help identify how we need to think about ourselves as a region, and where there are opportunities for success.A couple of things to check out if you’re interested in learning more about the Detroit Regional Partnership:

SMART Manufacturing Story Map - interactive outline of the what we have in the region around SMART manufacturing; helps tell the story of what we have in our backyard.

Detroit Regional Partnership’s Annual Report for 2021 - most recent review from the DRP.

Detroit Regional Partnership – and (one of) our approaches to business attraction

EDCLC Q1 REPORT

4

Events

Community events are a great way to make connections between local leaders, and industry to create a vibrant network of individuals committed to economic prosperity.

EDCLC Q1 REPORT

October 28, 2021Crystal Gardens Banquet Facility5:00 p.m. – 7:00 p.m. SAVE THE DATE FOR THE EDCLC’S 2021 ANNUAL MEETING

Economic Development Council of Livingston County Annual Meeting

May 18, 2021Virtual11:30 am – 1:00 pm

The Ann Arbor SPARK Annual Meeting is attended by business, government, and academic leaders from across the Ann Arbor region. Business leaders will highlight the region’s accomplishments over the past year and include a presentation of the Annual Meeting Awards and preview new projects and initiatives for the coming year

This year's keynote speaker is John Tuttle, NYSE Group vice chairman and chief commercial officer. John will sit down for a fireside chat with SPARK Board Chairman David Ruud to share his perspective on topics ranging from how startups can position for IPO to how the pandemic has impacted capital markets. Additionally, John will discuss how the stock market has helped the economy during COVID-19 and answer questions during a live Q&A session.

For more information and registration details visit www.annarborusa.org/annual-meeting

Upcoming Chamber Events

Hartland Area Chamber of Commerce Annual Polo Classic Event June 12th 4:00 pm Detroit Polo ClubGreater Brighton Area Chamber of Commerce Annual Golf Outing June 21st 11:00 am Oak Pointe Country ClubHowell Area Chamber of Commerce Annual Golf Classic September 28th Lakelands Golf and Country Club

12

Report Definitions

COMPANY VISITS:Company visits are meetings with local businesses regarding their current businessoutlook. This is a core “economic gardening” strategy that provides opportunities forreferrals like workforce development training, state-level resources, tax incentives,business development opportunities, cost reduction strategies, access to capital, etc.

EMPLOYMENT MULTIPLIER:Employment multiplier is a figure calculated by economic modeling through RegionalEconomic Models, Inc., which quantifies the indirect assistance provided through new jobcreation. For example, an employment multiplier of 2.0 would indicate that one new jobwould affect two total jobs (the new job itself, and another indirect job). Employmentmultipliers are based on the company’s industry and investment, among other factors.

PROJECT PIPELINE:The project pipeline represents potential projects that have been identified, along withtheir current status and probability of completion.

REFERRALS:Referrals to outside resources or value-added services provided by staff. This could includea referral regarding a state-level program, a review to determine the feasibility of entryinto a new sector, or technical assistance with local or state-level programs.

EDCLC Q1 REPORT