Wednesday, December 30, 2009

Sunday, December 13, 2009

Red, White And GREEN All-OVER! (A 21st Century "Transformative Green" Scenario)

Auto supplier turns trouble to triumph by venturing into turbines


"We knew the downturn was coming. ... we knew we were going to run out of work by the end of the first quarter of 2009." John Holcomb, general manager of MasTech's Manistee facility, who had an idea to save the supplier.   (ROMAIN BLANQUART/DFP)
"We knew the downturn was coming. ... we knew we were going to run out of work by the end of the first quarter of 2009." John Holcomb, general manager of MasTech's Manistee facility, who had an idea to save the supplier. (ROMAIN BLANQUART/DFP)

BY KATHLEEN GRAY

FREE PRESS STAFF WRITER

John Holcomb felt the cold winds blowing through the auto industry as early as 2006. But it took him three years and a dream to come up with a survival plan in which wind would play a big part.

As general manager of the Manistee factory of Sterling Heights-based MasTech, Holcomb had made a good living for three years supervising the production of machines and assembly lines for auto manufacturers. But he saw trouble coming in September 2006, when Ford announced plans to close 16 plants, cut 44,000 jobs and revamp its product lines with an eye on becoming profitable again by 2009.

Why, Holcomb wondered, weren't the other struggling auto companies embarking on similar plans?

"I saw Ford go out and secure funding for new, more economical models, and the rest of them weren't doing that," Holcomb said. "Changes weren't being made that would make them competitive on a broad enough scale. That was my first inkling that something was going to happen to the automotive industry."

His plans began to take shape a year later -- during a dream-induced conversation with his father and grandfather, both long dead, as Holcomb lay hospitalized in critical condition with a ruptured colon.

"I asked my dad and grandpa if I could go fishing with them and they said, 'No, it's not your time,' " he recalled. "At that point, I decided I had to do something to make a difference in a positive way."

So Holcomb hit upon alternative energy as a way to make a contribution to cleaning up the environment and keep a thriving business going in Manistee.

He went to Manistee's newly formed Alliance for Economic Success and pitched his idea: It was time for the group to aggressively recruit alternative energy businesses to the Lake Michigan shoreline community as a way to stave off the devastation that would come from an implosion of the auto industry.

"We knew the downturn was coming because all of the quote requests dried up, and then all the purchase orders dried up," Holcomb said. "We knew we were going to run out of work by the end of the first quarter of 2009."

As the alliance was hunting for alternative energy companies that also needed the machining expertise available in Manistee, Mariah Power of Reno, Nev., was looking for a place to build Windspires, residential wind turbines that were smaller and more compact than traditional windmills.

In October 2008, as auto sales were plunging and the Detroit Three were shutting plants and shedding thousands of employees, MasTech's Manistee operation began transforming from an auto industry supplier into a wind turbine factory.

Last January, the plant sent out its last automotive job -- an assembly line for a BMW plant in Spartanburg, S.C.

"I've been doing automotive all my life, and there's a certain sadness in getting out of that business," Holcomb said. "But it's also been refreshing to step away from the unwritten rules and regulations of the auto industry. So often, they didn't reward innovation."

The joint venture between Mariah and MasTech shipped its first Windspire on April 20 and has since built hundreds. Optimistic initial estimates called for production of 75 to 100 units a week, but the overall economic downturn has forced Holcomb to scale back to 100 a month.

"We're trying to continue to get the American people to spend some money. And we've had a hard time getting traction for sales because of zoning issues," Holcomb said. "Right now, I'm talking to as many zoning boards as salespeople."

From a high of 43 employees, MasTech is down to 35, many of whom worked in the auto industry. That's a steady level of employment from about 40 as an auto supplier.

"I worked in the automotive industry for 15 years, and now I'm doing the complete turnaround," said Sean Jacobs, 39, a machinist from Manistee.

Adam Morris, 37, of Ludington had been working in an auto die stamping plant in Grand Rapids but jumped at the chance to move to MasTech.

"I wanted to be in a business that was more secure," he said.

The company has plans for expansion.

This fall, it began producing a Windspire that is large enough to store wind-created energy in a battery for future residential or vehicle use. MasTech expects to begin construction on another production facility in mid-2010 to meet expected demand from overseas.

"We have some really huge orders pending overseas. We thought we'd sell more domestically right off the bat," Holcomb said. "But it turns out there's more interest right now in Europe, Asia and north Africa than in Iowa."

And, thanks in part to a dream, MasTech's Manistee plant will deliver.
Contact KATHLEEN GRAY: 313-223-4407 or kgray99@freepress.com



Wednesday, December 2, 2009

HEAVY LIFTING 101 (Preparations Underway on Way Forward to Acquiring the Loot)

Public schools 

Granholm
 pushes reform, aims for U.S. grants 

By CHRIS
 CHRISTOFF

FREE PRESS LANSING BUREAU CHIEF


LANSING — Gov. Jennifer Granholm gave strong support Tuesday for measures she said will both improve public schools and qualify Michigan for up to $400 million in federal grants next year.

She called on lawmakers to approve legislation to give the state more power to intervene in academically failing school dis tricts, increase the number of high-quality charter schools, merit pay for teachers and alternative
 certification for teachers without education degrees.

Those changes are among the criteria the feder al government will use to award $4.3 billion in grants to states to improve schools academically.

Earlier Tuesday, the Senate Education Committee ap proved legislation that would create more charter schools, enable
 state takeover of failing schools and allow alternative certification of teachers.

Senate Majority Leader Mike Bishop, R-Rochester, said his caucus supports the changes Granholm endorsed. The House plans to consider similar legislation, which must be completed this month to allow the state to apply for the federal money.

Granholm’s remarks were her most forceful public en dorsement of changes that have long been opposed by teachers unions, which have been her po litical
 allies and a powerful influ ence in Democratic politics.

“We have to transform education in Michigan; we have to be fearless about it,” Granholm told educators.

Michigan Education Associ ation spokesman Doug Pratt said compromise is possible. But he questioned the need for recruiting non-certified teach ers “when there are thousands of unemployed teachers out
 there now.”