JR Automation Technologies’ business grew more than 25 percent in the last two years, thanks in part to West Michigan’s emerging advanced battery industry.
The Holland Township company makes capital machinery for suppliers of advanced energy storage. What began with orders in West Michigan has led to sales across North America.
“It’s a new industry and very chaotic,” said Scot Lindemann, vice president of engineering and operations for JR Automaton Technologies, part of the Huizenga Manufacturing Group.
“It will go through the cycles but in Michigan for sure there are a lot of companies that are in it for the long haul. The ones who are the flash-in-the-pans will come and go. But the long haul investment is real.”
Lindemann was one of more than 60 people from area businesses who attend a luncheon sponsored by Lakeshore Advantage and Grand Valley State University.
They came to hear Dan Radomski, vice president of new market services at NextEnergy, a nonprofit launched by the state a decade ago to help grow Michigan’s energy sector.
NextEnergy provides market research and other intel intended to help companies move into the industry faster and smarter.
“We share our intelligence in the hopes we create a new market for the region, and create jobs and investment,” said Radomski.
Many of the West Michigan office furniture and automotive suppliers have the potential to expand into the advance battery industry.
“One of things we found is what made us big in furniture or automotive is that we owned a big part of that supply chain from materials to sub-components to sub-assembly to the actual final product, and all the design, engineering and tooling in between,” said Radomski. “We only have part of that value chain right now in batteries but we certainly have the right competency.”
The opening of the LG Chem and JCI lithium ion battery plants in Holland has generated a supplier network of 16 companies.
“Today, between LG, JCI and these 16 suppliers, we have 500 employees in industry, up from zero two years ago,” said Randy Thelen, president of Lakeshore Advantage, the economic development agency credited with convincing the companies to build their state-of-the-art plants in Holland.
He sees the potential for the number of battery suppliers in West Michigan to increase by another five to 10 companies but his focus is also on helping the suppliers in the market today grow their sales and reach.
Concerns about technology, bankruptcies and production slowdowns are considered short-term issues by those in the industry.
“This is an emerging technology and an emerging industry breaking into new markets,” said Thelen. “There are growing pains. I think here in West Michigan the strength is that we have two very strong companies with global reach and incredible track records.”
He notes that LG Chem is already one of the world’s biggest lithium ion producer while Johnson Controls is a global leader in battery systems.
The federal government’s $300 million investment in the Holland battery plants has generated a criticism especially during the presidential election.
“It’s a global race of innovation so those production plants are going to happen somewhere in the world and the federal government fought to get them here in the U.S. and the state of Michigan just did a better job of making it best place to come to by matching some of their own incentives with the federal,” Radomski said.
PHS head coach Tim Campbell believes his team is headed in the right direction.
“We are healthy and back to full strength so we have crossed the first obstacle,” said Campbell, whose squad improved to 6-4-1 with a 5-1 win over Wall last Friday at Baker Rink.
“With the postseasons this group of guys has had the last three years, they understand what it takes. They know we are not going to win every game. When you get to this point, you need to learn from your mistakes and learn what it takes to be successful. They are putting those lessons to use. I would rather go through some bumps and bruises in the beginning in order to be playing our best at the end.”
The return of senior star Matt DiTosto from a hand injury puts the Little Tigers in a stronger position.
“Obviously, Matt brings another skill set,” said Campbell of DiTosto, who tallied a goal and an assist in the win over Wall with Connor McCormick scoring two goals.
“It brings a confidence, every player knows that we are at full strength. He is a playmaker, not just a goal scorer. The past is the past, he missed a few weeks. I told him he can still mold his senior year and make it into what he wants it to be.”
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