<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=1018706268302959&amp;ev=PageView&amp;noscript=1">
((o
Knowledge • News • Insights
 o))
In Partnership With

August '22 NLEA Economic News

Michigan Business Network
August 25, 2022 8:00 AM

nlea Cropped
Your Latest Economic News in Northern Michigan! Plus Core Partner Updates!

Proving Ground for Outdoor Rec

By: Sam Bailey, Strategic Initiatives Manager, and Abigail Kendziorski, NLEA/DTE Energy Foundation Summer Intern

From large tracts of state land for hunting and fishing; to lakes and rivers for every watersport; to twisting trails for bikes, snowmobiles, and ORVS; to hills for boarding and skiing, the places that are fun to play are also the perfect place to test and refine outdoor products. The outdoor recreation industry plays an important role in Northern Lower Michigan’s economy and businesses are seizing the opportunity to use the natural environment as a proving ground for various products.

The outdoor recreation industry in Antrim, Charlevoix, Cheboygan, and Emmet Counties generates over $151,000,000 in revenue annually and employs over 2,705 people according to estimates from Duns & Bradstreet Hoovers. 1 The two largest sub-sectors that contribute to these figures are outdoor recreation facilitators and outdoor recreation retailers and wholesalers. Facilitators are businesses offering access to outdoor assets to consumers, such as golf courses, marinas, and campgrounds. Retailers and wholesalers, who are vendors of outdoor recreation products, play a crucial role of getting equipment and clothing to consumers; the sector accrues over $39,268,000 in annual revenue. While these sectors are significant, there are benefits to growing the ecosystem of businesses researching, designing, and producing outdoor recreation equipment and soft-goods. Local producers generate over $3,840,000 in revenue, but they are uniquely positioned to use the natural environment of Northern Lower Michigan to test and refine their products.

While the region is a haven for winter fun, some local businesses use winter to innovate. Shaggy’s Copper Country Skis in Boyne City realized the area is more than a ski destination; it can also be the birthplace of ski equipment. With their factory situated less than five miles from Boyne Mountain, the company can easily design, test, and refine prototype skis; “we can really take a product from an idea one morning, and the next morning is skiing on that product.” Another company testing its products on the slopes is SkierQuest, a manufacturer of custom, protective ski equipment. Tony Blancato, the company’s president, shared that all their products “are designed, prototyped, and tested in Michigan.” Young racers seen training in gates at Boyne Highlands are there to improve themselves, but some may also be providing crucial feedback that influences the next generation of SkierQuest products. While ski resorts are well-traveled destinations, there is also innovation happening off the beaten path. In Harbor Springs, Rick Byer spent over twenty years designing, testing, and manufacturing tow-behind groomers for his company Snow Groomers. The products are used around the world for dog sledding, cross-country skiing, fat tire biking, skate skiing, and more. When the company was sold to a family in Utah, Rick stayed on, testing products in the area. Northern Michigan’s spirit of innovation and access to testing environments is not limited to the (in)famous winters.

Running shoes, snowmobiles, bikes, ORVs, and hiking boots are used everyday on the hundreds of miles of trails in Northern Michigan, but not many are original prototypes. Wired Off-Road is a startup at the intersection of electrification and outdoor recreation, building kits for users to convert gas-powered dirt bikes to electric. With their first product set to launch in the spring of 2023, the team is deep into testing their prototype. Co-founder David Kloiber shared that, “the Michigan DNR’s ORV trails are a huge resource that we take advantage of because they cover sand, dirt, wooded, rocky, and hilly terrain. We spend many weekends in the greater Gaylord area riding from DNR trailheads or family cabins.” While most people ride for enjoyment, the Wired Off-Road team works hard to push their prototypes to the limit to ensure they have a quality product for their customers. For those interested in a human-powered off-road adventure, the region’s mountain biking community has grown rapidly in recent years. Brandon Inglehart owns and operates Serendipity Cycles in Harbor Springs where he builds custom bicycle frames and wheels for cyclists. Combining his industry education with his personal experience riding the region’s paved and off-road trails, Ingelhart is able to fabricate custom frames whose geometry is unique to each customer’s dimensions, riding style, and intended use. Inglehart emphasized how rewarding it is to produce and sell here where the bikes can be used, remarking that “I get great joy out of riding my bike and seeing customers using the bike frames I custom built and being so happy with their product.” In Northern Lower Michigan, innovation and testing don’t just take place on land.

If Michigan is the Great Lakes state, Northern Lower Michigan embodies that name and then some. 44.8% of Antrim, Charlevoix, Cheboygan, and Emmet Counties’ surface area, or 1,684 square miles, is water. The region’s networks of lakes, rivers, and streams create the ideal proving ground for outdoor equipment. Jason Thelen, founder of Little Bay Boards, can’t imagine making his eco-friendly, hollow-wood standup paddle boards anywhere else. Our region’s unparalleled access to rivers, inland lakes, and the Great Lakes offers Thelen the chance to test his prototypes in a variety of conditions. The result of Thelen’s hard work refining his product is a growing company distributing its boards around the world. Looking forward, the region is positioning itself as a testing ground for electrification in the pleasure boat industry. An expanding network of Aqua superPower chargers at local marinas, a high concentration of experienced marine mechanics, and access to the Great Lakes, inland lakes, and rivers give the region’s unique advantage in the future of the boating industry.

When taken together, Northern Michigan’s outdoor assets create not just a fun environment for hobbies but also a proving ground for innovative companies in the outdoor recreation industry. If the region can foster these local companies, retain their operations, and entice other companies to test their products here, creating outdoor recreation products locally offers a path to family-supporting jobs, a twelve-month economy, and attracting talent to the region. While not a silver bullet, fostering this industry is a valuable tool in uplifting the Northern Michigan community.

1 Data was accessed through Duns & Bradstreet Hoovers in 2020 by Michigan Economic Development Corporation staff. The majority of values reported are imputed, or estimates. To learn more about D & B Hoovers visit their website.

This entry was posted in Press Releases, on August 13th, 2022

Northern Michigan's Natural Asset
 
As noted above communities across the NLEA service area of Antrim, Charlevoix, Cheboygan, and Emmet counties recognize that outdoor recreation contributes to attracting and sustaining employers and families.
 
Outdoor recreation makers, facilitators, retailers, and service providers are major players in the local economy; it is important to foster, grow, and retain the outdoor recreation industry in Northern Michigan to promote economic development and provide jobs.
 
Figure 1 below breaks down the revenue from different outdoor recreation sub-sectors. Facilitators contributed a vast majority to the revenue made in the NLEA service area, with an estimated total of $87,260,500, or about 57.6% of the total revenue. Businesses that fall under this category include golf clubs, marinas, and campgrounds.
 
Read on to see how the other subsectors of the outdoor recreation industry play a significant role in the local economy, generating an estimated $151,540,377 in annual revenue and 2,705 jobs in the region.
 
Cheboygan County's Tube Fab Awarded Industry 4.0 Grant
Twenty-three small manufacturers around Michigan have been awarded a total of nearly $500,000 to help them adopt Industry 4.0 technologies, the Michigan Economic Development Corporation announced today. The funds are from the first round of awards as part of the $3 million Industry 4.0 Technology Implementation Grant program.
 
One of those companies is Tube Fab Roman Engineering in Cheboygan County, which received $25,000.
 
“Michigan has always been ahead of the curve, from putting the wheels on wheels to Motown and creating the snowboard among other innovations. These grants are yet another way that we demonstrate our innovative spirit as we help prepare manufacturers to adopt new and innovative technologies for the future,” said Quentin L. Messer, Jr., CEO of MEDC and President and Chair of the MSF Board. “By working with Automation Alley, the Michigan Manufacturing Technology Center, our local partners, and communities, we are strengthening advanced manufacturing and entrepreneurship, thereby creating jobs in this innovative sector for future generations of Michiganders.”
 
Workforce Housing Initiative Growing
 
Northwest Michigan Habitat for Humanity has officially broken ground on the largest building development in the organization’s history, the Foundations For Our Future campaign. Through this campaign, the local housing nonprofit aims
to build 43 new homes across Emmet and Charlevoix counties by 2025. Currently, Habitat has ten home builds underway, three of which are in the process of being sold to qualified Habitat partners. By the end of the year, 15 homes will be under construction through the first phase of development in this large-scale residential building campaign.
 
Thirty-two of these homes are being built at the new Meadowlands Subdivision in Alanson. This project is already underway, with five foundations dug and three new modular homes already set and being worked on!
 
NMHFH is responding to the housing crisis by raising $5 million in capital needed to construct 43 homes in the community by 2025. These funds will allow Habitat to complete over $12 million in construction. Learn more at northwestmihabitat.org
 
Habitat for Humanity workforce housing
Habitat for humanity build workforce housing
 
 Up to $72 million available to support loans to small businesses
 
Michigan is deploying the first round of State Small Business Credit Initiative (SSBCI) 2.0 funding from the U.S. Department of Treasury. Through this initial round of funding, up to $72 million will be available to support loans to small businesses through the MEDC's SSBCI 2.0 Access to Capital programs, including the Collateral Support, Loan Participation, Loan Guarantee, and Capital Access programs, and equity investments for early-stage, technology-based businesses in Michigan as part of the Small Business Venture Capital Program.
 
Interested venture funds should visit michiganbusiness.org/sbvcp/ for more information or may direct any questions to SBVCP@Michigan.org. Applications will be accepted by the MEDC during a three-year open period or until the budget is exhausted. Recommendations for awards will be submitted to the MSF Board for approval.
 
Loans and equity investments under SSBCI 2.0 will be issued through lenders, not through the MEDC directly. 
 
Details and support available at MEDC's website.
 
Funds for Farms
The Michigan Department of Agriculture and Rural Development (MDARD) is now accepting applications for a new Farm Innovation Grant Program. These grants are designed to help develop and support innovative solutions to real, immediate, and future problems facing Michigan’s food and agricultural industry.
 
“Michigan’s food and agriculture industry is known nationally for its innovation and modernization,” said Governor Gretchen Whitmer. “This new grant program will empower entrepreneurs and businesses who are conceptualizing and creating innovative solutions to help Michigan farmers thrive."
 
Those interested in applying should visit Michigan.gov/MDARDGrants to view the application and grant guidelines.
 
Cheboygan Economic Development Series
 
Cheboygan County Economic Development Group is coordinating a series of panel discussions to engage industry experts and identify positive solutions for a stronger community today and tomorrow.
 
See below for schedule of topics. All sessions take place 11:30 am - 1:00 pm at COPESD (6065 Learning Lane, Indian River). Lunch is provided in person and a virtual listening option is available. Email cheboygan.edc@gmail.com for more information.
Forward Cheboygan flier
 
Cyber Security Grant Available
DoD Cybersecurity flyer 2022
 
Register for the CEC Conference
CEC event 2022
Join other like-minded communities at the 2022 Connecting Entrepreneurial Communities (CEC) Conference. CEC is a one-of-a-kind conference designed to share ideas, learn about helpful resources, and empower each other to support local entrepreneurs and a community’s entrepreneurial thinking.
 
A signature element unique to CEC is that all breakout session are embedded within community buildings and storefronts in downtown Alma. By design, attendees will fully experience downtown Alma and have plenty of time to network, walk, and patronize local businesses between sessions. Participants will also learn best practices from state and local entrepreneurial professionals.
 
CEC, facilitated by Michigan State University, is happening September 14-15 in Alma. Register now for discounted pricing. Open registration ends September 13.
 
Core Partner Corner
 
Find out what our Core Partners are up to!
  • NLEA Logo Transparent Background
  • NLEA header 2022 _7_
  • bike_man

Michigan Business Network is an online broadcasting company that provides knowledge, news, and insights into Michigan’s businesses, industries, and economy.