Lakeshore Engineers Success with SBA Help
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20090420-NEWS--0001-NAT-CCI-CD_-- 4/17/2009 6:34 PM Page 1 ® www.crainsdetroit.com Vol. 25, No. 16 APRIL 20 – 26, 2009 $2 a copy; $59 a year ©Entire contents copyright 2009 by Crain Communications Inc. All rights reserved in their Incentives lead the charge Twenty Twenty 20s Hybrid-car battery plants on the way, positive or negative BY RYAN BEENE vehicle technology to become af- pricey technology in favor of tradi- ment is planned by Johnson Con- CRAIN’S DETROIT BUSINESS fordable by the time the market de- tional vehicles that use cheap trols-SAFT Advanced Power Solutions mands it. The gasoline. L.L.C., KD Advanced Battery Group Plans to build four new ad- INSIDE plants would “Battery technology does appear L.L.C. and Korea-based LG Chem vanced battery plants in Michigan help create to be a good bet, but the state, by through its Troy-based subsidiary were lauded last week for bringing What’s coming: economies of giving tax incentives, is taking a Compact Power Inc. to launch the Four projects for the state closer to a green economy Michigan, Page 28. scale faster business risk that they will be new plants. — but the investment does carry than the mar- wrong on the pace of adoption on In addition, the Michigan Eco- What’s not: State big economic risks. didn’t apply for ket would on this specific type of battery tech- nomic Growth Authority has autho- Industry experts say the lithium center Kentucky its own. nology,” said Pat Anderson, prin- rized more than $500 million in ion battery plants — spurred by won, Page 28. But others cipal of the Anderson Economic state tax credits. more than $500 million in state tax say the bat- Group. When operational, the plants credits and $27 billion more in tery plants most likely will face “The big risk is that consumers could produce enough lithium ion available federal funding — will al- overcapacity for years, with con- will rebel.” Crain’s fourth annual low now-expensive plug-in hybrid sumers initially rejecting the About $1.7 billion total invest- See Battery, Page 28 salute to 20 creative area leaders in their 20s begins on Page 13. You can see photo galleries of the winners, plus four video profiles, at www.crainsdetroit.com /twenties. Lakeshore engineers Is there Page 3 Stimulus money could plug a Plan B state’s budget holes, but at success with SBA help what cost? BY NANCY KAFFER CRAIN’S DETROIT BUSINESS for Cobo? This Just In Fifteen years ago, Avinash Rachmale used to wonder how Custom cop car company he’d make the $250-a-month rent With tax off table, considering Plymouth site on his Lakeshore Engineering Ser- vices Inc. office near Six Mile Road there’s no money An Atlanta-based automo- and Telegraph. tive startup is considering a His first year in business, rev- for expansion site in Plymouth to be the enue was less than $30,000 and hub of manufacturing for its Lakeshore was a two-room, one- BY NANCY KAFFER custom-built police cars. man shop. CRAIN’S DETROIT BUSINESS Carbon Motors Corp. plans Today, Rachmale leads The to be an OEM and retailer of Lakeshore Group, an international As a regional deal to expand cars used only for law en- engineering company with about Cobo Center dies, the city of De- forcement, according to its 250 employees, from a plush aerie troit must find alternate funding Web site. Rather than con- atop an Albert Kahn-designed to improve the aging convention tract with an existing OEM, building in Detroit’s New Center. center or face losing the North the firm plans to avoid lega- As for revenue, that’s changed a MARK LEWIS/CRAIN’S DETROIT BUSINESS American International Auto Show. Avinash Rachmale, CEO of Lakeshore Engineering Services Inc. in Detroit, cy costs and use existing The Michigan Court of Appeals little, too — Lakeshore ended 2008 recently won the U.S. Small Business Association’s Entrepreneurial Success auto suppliers. The company with $150 million in revenue and award — for growing his operation beyond the small-business category. gave the coup de grace Friday to a says it will create 1,350 direct $250 million in its sights. legislative deal that would have jobs and a total of 10,000 indi- “Look at how the mindset small and grew to become, within Inc.’s Tampa office. Brzezinski has expanded and renovated the aging rect. changes,” Rachmale said. SBA’s size standards, a big busi- a long-standing professional rela- convention center under the aegis Executives recently toured And Rachmale recently was ness,” said Richard Temkin, SBA tionship with Rachmale. of a regional authority. a 130-acre site at 5 Mile and named the national winner of the Michigan district “When I think That legislation would have fi- Ridge Road, said Gary U.S. Small Business Administration’s director. “The about nanced the estimated $288 million Roberts, CEO of Plymouth- Entrepreneurial Success award. other criteria for Avinash Rachmale Lakeshore, I expansion by extending a tri-coun- based DeMattia Group, which The award isn’t given to small an award is that think the way he ty hotel and liquor tax through owns the land. businesses. With $150 million in the business knew Lakeshore did it was very 2039. “Given our location and revenue, Lakeshore exceeded the used SBA help.” calculated — he Without that tax, regional lead- proximity to the supplier SBA’s small-business standards Rachmale couldn’t remain a kept his hand on ers say, there’s no money to fix base, we have the perfect site long ago. skillfully lever- the pulse of what Cobo. was going on not And without an overhaul of See This Just In, Page 2 “It’s basically an award that aged SBA pro- one-man, small-job goes to a business that started grams to grow only in the city Cobo, the auto show’s organizers his business, shop, with a CEO of Detroit but must look at other venues, NAIAS Temkin said. also what was co-chair Douglass Fox said Friday. “When I first bogged down in day- going on nation- “The reason I supported the met Avinash, he to-day operations. ally,” he said. transaction from the beginning is was basically a “He didn’t try there are not that many real op- one-man band trying to muster up to compete with people he knew tions available,” said Detroit City some business,” said Tom he couldn’t compete with. He tried Council member Sheila Cockrel, Brzezinski, an executive vice to find opportunities for small who voted to support the expan- president in Detroit-based engi- businesses, and he tried to find sion plan. “This is an option that NEWSPAPER neering firm Wade Trim Associates See Lakeshore, Page 26 See Cobo, Page 27 20090420-NEWS--0002-NAT-CCI-CD_-- 4/17/2009 5:51 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS April 20, 2009 surgery and allow anesthesiolo- McLean, Va., law firm. The move percent drop from the 173 SBA- Government, Academia and In- THIS JUST IN gists to alter sedation if needed be- adds all 22 Tighe Patton attorneys backed loans made in March 2009. ternational Group, to focus on de- fore complications arise. to a small staff that Butzel already “From April through Septem- veloping TARDEC applications ■ From Page 1 — Tom Henderson maintained in Washington. ber of last year we averaged 146, for non-energy innovations. The joint venture became effec- with a high of 188, and a low of NAC Director Paul Skalny will for them,” he said. tive April 1, and Butzel owns a 50 116,” Temkin said. continue to manage both. Carbon Motors Chairman and Retailer offers nursing homes percent stake in the rebranded The SBA’s fiscal year began Also, TARDEC has created a CEO William Santana Li has been a break on digital TV boxes firm, said Joe Melnick, chief mar- with a sharp decrease in lending, Ground Vehicle Gateway portal keeping a blog about the site se- keting officer. Butzel Long Tighe when the number of loans made to help businesses get inquiries or Novi-based Internet electronics lection process at www.carbon- Patton has a mix of federal regula- fell 66 percent compared with the proposals on technology with de- retailer SolidSignal.com is offering motors.com and said the firm is tory lawyers, litigators and a same month the year before. fense applications directly to to cover the difference on digital considering Plymouth in addition business law practice. “This is almost the first time NAC and TARDEC researchers. It television converter boxes for na- to sites in Georgia, Indiana and Meanwhile, six attorneys from there’s been an uptick in the is at tardec.groundvehiclegate- tionwide state-licensed nursing South Carolina. Butzel’s Detroit and Bloomfield month-to-month (numbers) since way.com. homes. — Daniel Duggan Hills offices resigned last week to then,” he said. “But it’s too early — Chad Halcom Facilities will get one free con- open Brooks Wilkins Sharkey & Tur- to say there’s a trend.” verter box from SolidSignal.com co P.L.L.C. in Birmingham. Temkin said it seems likely that Medical technologies for each of the U.S. government Grocer moves to grow The attorneys are: Keefe some of the SBA-geared provi- coupon, issued on behalf of a resi- get testers’ approval Brooks, Matt Wilkins, Dan sions in President Barack Oba- Next month, the Market Square dent. Nursing homes have specif- Sharkey and Mike Turco as part- ma’s economic stimulus package store in West Bloomfield Town- Two area tech companies got ic coupons available under the ners, and Paula Hall and Brent have boosted SBA-backed lending.