Thank The Farmer For The Beer In Your Hand

Quenching the Thirst 

Chapter One: The Farmers

Jeff and Bonnie Steinman (pictured above) are betting their farm on Michigan’s craft brewing industry. The Barry County, Michigan couple spent several years experimenting before launching Hop Head Farms LLC in the summer of 2012.  They are growing hops that brewers need on a 40-acre lot with 15-acres of new plants.
They also have a small test yard that the Steinmans started in 2009.
This is perfect for these two. Jeff and Bonnie are just what they say they are and you can feel their enthusiasm for their craft even in a conference call phone interview. I spoke with them on the patio of a Starbucks near Kalamazoo, Mich. while they took a break from their farming operation on a hot summer day
You have to believe her when Bonne says that she and Jeff are “plant people” who are always looking for new crops to grow. Perhaps more importantly, they don’t just like beer. They love beer. Bonnie said they are “beer enthusiasts, especially (for) Michigan-brewed beers.”
How could there be any business more perfect for this couple? 
They are targeting craft  and home brewers who Jeff said are having a hard time getting the hops they need, especially locally grown hops. Large hop farms are locked into long-term contracts with the macro-brewers, the giants of the industry. “So we are trying to reopen  the market to some of the smaller guys,” he said. “Very few have large barrel capacity in any one state. The small breweries have a hard time. We would like to work with larger breweries but would like to help the smaller breweries with supply issues.”
The smaller breweries are really a victim of their own success, or better said, they are a victim of their own recipes. They have supply issues because the micro- and craft-brewers use a lot more hops to make barrels of beer than do macro-brewers, according to Jeff. “Even though is a small percentage, the craft brewers have really impacted the supply of hops.”
  

Jeff and Bonnie got down and dirty when it came time to ignite their passion. With a business model in the works for several years , Jeff said that close to 15,000 plants were hand-planted in hand-crafted hop hills augmented with local compost and covered in organic weed control paper over a period of three and a half weeks.  Five varieties of hops were planted of which three were in short supply for the 2012 season already when I spoke with the Jeff and Bonnie.  
More than 20 volunteers came from as far away as the Chicago and Detroit areas to assist the Steinmans  in the planting of the hops.  They converted a  corn field located in downtown Hickory Corners to a hop farm  of nearly 15,000 plants grown on a trellis system reaching over 20 feet high in merely four months.  
“The farm and facilities were developed with the assistance of several different contractors contributing their expertise to the project including a trellis contractor, well drillers, irrigation contractor, and Morton Buildings and their subcontractors  as well,” Jeff said.  Nearly all materials and work are from Michigan businesses including treated pine poles, wire, compost, and starter plants.”
He also said they planned to receive additional assistance with the work still ahead of them  through University of Illinois interns, paid seasonal employees and continual volunteer assistance that has proven invaluable.  

~RTR~

Manufacturing comes down to making things our of raw materials. That is why I have included agriculture, food processing and craft beer brewing in the five-part ebook essay series, Restore The Roar: Manufacturing Renaissance.
Quenching The Thirst and the other ebooks in this series are available through Amazon.

California Likes Imported From Detroit

Chrysler Group LLC's continued focus on the California market is paying dividends as it was the fastest-growing manufacturer in the state in 2012 with retail sales up 50 percent.

Chrysler Group volume increased 50 percent to 77,266 registrations in California in 2012, up from 51,517 registrations in 2011. In comparison, industry sales in California last year grew by only 26 percent.

Since opening its California Business Center here in 2011, retail registrations have shot up 137 percent, according to Experian Automotive Data, from 32,601 to 77,266. Chrysler Group's share of the California market, based on retail registrations, has grown to 5.8 percent, up 2.3 percentage points from a 3.5 percent share in 2010.

"Looking back on 2012, we were the fastest-growing manufacturer in the state of California and also one of the fastest-growing automakers in the country," said Reid Bigland, Head of U.S. Sales, Chrysler Group LLC. "Seven of our vehicles recorded their best ever annual sales in 2012 demonstrating how the quality, design and fuel efficiency of our product line up continues to resonate with consumers."

By focusing almost exclusively on one of the most important car markets in the world, Chrysler Group's California Business Center has been able to sustain the momentum started in 2011.

• Chrysler Group's retail sales increased 50 percent in 2012 compared with sales in 2011; Fastest-growing manufacturer in the state
• FIAT brand retail sales were up 254 percent in 2012 versus 2011; Fastest-growing brand in the state
• Ram Truck brand retail sales were up 47 percent in 2012 compared with sales in 2011
• Chrysler brand retail sales increased 43 percent in 2012 versus sales in the prior year
• Dodge brand retail sales grew 37 percent in 2012 compared with sales in 2011
• Jeep® brand retail sales were up 38 percent in 2012 versus sales in 2011
• Chrysler Group retail share increased to 5.8 percent in 2012, up 0.9 percentage points from 2011

~ LCP ~

Restore the Roar: Manufacturing Renaissance, a five-part ebook essay series is now available through Vook.com and Amazon. 

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Dear Mr. President: Ohio? Really?

Dear. Mr. President: Ohio? Really?  You want to spend $1 billion to create manufacturing clusters of prosperity based on what you saw in Ohio? Really?

Come to Michigan. We'll be glad to talk about the renaissance of manufacturing. We do it every day.

We could talk about what a small business -- to small to bail out -- is doing in Comstock Park, Michigan, just north of Grand Rapids. Commercial Tool & Die saw the need for CNC machinists so they started a sister company, Expert Tech, to train people in CNC machining and other skills needed by manufacturers in West Michigan.

Where are the workers? We understand the need. We are doing something about it, and we would be glad to talk to you about it. Walk the campus of Grand Valley State University and we can talk about the education-industry partnership that was created because we saw the need to grow new engineers for manufacturing. We can't plant those seeds fast enough.

We know about the dark days of manufacturing. We were there for the Great Collapse. However, while everyone was betting their ranches of the Creative Class, we were still inventing things and making things.

We'll be glad to talk to you about that, too

And while you are here, please visit the Medical Mile in Grand Rapids. It's a health care, life sciences, higher education cluster of prosperity, that was created by the community of Grand Rapids. 

Mr. President: Please, join the conversation about manufacturing in Michigan. We do it every day.

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Last Chance Mile: The Reinvention of an American Community, the story of Grand Rapids Medical Mile and the people of that American community is available wherever books are sold including West Coast Coffee on Monroe Center in downtown Grand Rapids and Schuler Books & Music in Grand Rapids.

Where Are The Workers? is one of five e-book essays in the Restore The Roar: Manufacturing Renaissance series available through Amazon and Vook.com.

American Axle's Strong Finish

American Axle & Manufacturing has to be one of the great comeback stories of Michigan manufacturing. The company announced a business backlog of $1.25 billion in December, a $100 million investment in its Michigan manufacturing facilities February 1, and then one week later finished 2012 with very strong year-end and fourth-quarter earnings  reports.

DETROIT, Feb. 8, 2013 /PRNewswire/ -- American Axle & Manufacturing Holdings, Inc. (AAM), which is traded as AXL on the NYSE, today reported its financial results for the fourth quarter and full year 2012. 

Fourth Quarter 2012 Results

• Fourth quarter 2012 sales of $736.7 million, up 21.6% on a year-over-year basis
• Non-GM sales grew by 16.6% on a year-over-year basis to $204.1 million
• Gross profit of $84.0 million, or 11.4% of sales
• Operating income of $18.6 million, or 2.5% of sales
• Net income of $319.9 million, or $4.21 per share, which includes the favorable impact of a $337.5 million benefit related to the reversal of our valuation allowance against our net federal deferred tax assets for entities in the United States
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization excluding the impact of curtailments, asset impairments, restructuring costs and special charges related to the closure of the Detroit Manufacturing Complex and Cheektowaga Manufacturing Facility, and debt refinancing and redemption costs, to the extent applicable) of $64.5 million or approximately 9% of sales
• AAM's quarterly results reflect the impact of $9.7 million (or $0.13 per share) of debt refinancing and redemption costs and $6.2 million (or$0.08 per share) of restructuring costs related to the closure of our Detroit Manufacturing Complex and Cheektowaga Manufacturing Facility

Full Year 2012 Results     

• Full year 2012 sales of $2.93 billion, up 13.4% on a year-over-year basis
• Non-GM sales grew 11.6% on a year-over-year basis to $792.6 million
• Gross profit of $399.7 million, or 13.6% of sales
• Operating income of $156.4 million, or 5.3% of sales
• Net income of $367.7 million, or $4.87 per share
• Adjusted EBITDA of $346.7 million, or approximately 12% of sales
• AAM's full year results reflect the impact of $19.8 million (or $0.26 per share) of debt refinancing and redemption costs and $40.6 million(or $0.54 per share) of restructuring costs related to the closure of our Detroit Manufacturing Complex and Cheektowaga Manufacturing Facility

American Axle & Manufacturing is one of the great stories that is part of the manufacturing renaissance that we are seeing in Detroit, in Michigan and the Great Lakes region.

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Restore The Roar: Manufacturing Renaissance, a five-part short e-book series is available at Amazon, the iTunes bookstore and vook.com  

Last Chance Mile: The Reinvention of an American Community, the story of the revival of Grand Rapids, Michigan is available at West Coast Coffee on Monroe Center in downtown Grand Rapids and at Schuler Books & Music on 28th Street in Grand Rapids. Or you can order an personalized, autographed edition at www.rodkackley.com.

$100 Million & 500 Jobs For Michigan

Need one more sign that manufacturing’s roar is being restored? How about this? American Axle & Manufacturing is investing more than $100 million in its Three Rivers, Michigan Manufacturing Facility. The investment, which will be completed by December 2013, is expected to create more than 500 new jobs while further diversifying AAM's product portfolio and customer base in North America.

The investment represents the installation of new production lines, multiple assembly stations, paint line modifications, additional shipping and receiving capacity and upgrades to the facility's business offices and lobby. To complete the project, AAM has sourced millions of dollars of business to Michigan-based companies, and in turn, is positively impacting multiple communities in the state, according to a company press release.


How did Three Rivers get so lucky? It is not a hot bed of technology. It’s closest neighboring community of any size is Kalamazoo, which is known more as the home of Western Michigan University than anything else.

However, if you read American Axle founder Richard Dauch’s latest book, American Drive, you will find out that Three Rivers should thank it’s United Auto Workers union local.

Dauch wrote in American Drive that the Three Rivers UAW local was the only one that would work with him when he created American Axle. 

AAM is conducting a job fair for manufacturing facility positions on Saturday, February 16, 2013 from 9 a.m. to 1 p.m. at the Kalamazoo County Michigan Works! Service Center located at 1601 South Burdick Street in Kalamazoo, Michigan. To find out more information on the job fair, or to submit an application online prior to the event, visit the careers page at www.aam.com


"Last fall, we announced that AAM would be bringing new business to Michigan," said AAM President & Chief Executive Officer David C. Dauch. "For the past two years, we have been preparing the Three Rivers Manufacturing Facility for this new business launch. Now, we are in a growth mode and hiring hundreds of associates. This is exciting news for the State of Michigan, the City of Three Rivers and for AAM."  

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Restore The Roar: Manufacturing Renaissance, a series of short ebooks is available through Amazon, Vook.com,  and the iTunes Store.

Ford Shares Profits, Bonus Checks Are Back

Big Three bonus checks were a part of life in Detroit in the 1960s and through the early years of the 1970s. 

Those checks were as much a part of the fabric of the Motor City as were the sounds of Motown on CKLW, underground rock on WABX or reading the latest notes of rebellion in the Fifth Estate.

CKLW and WABX are gone forever. Motown moved. But, the checks are going out again. 

Nearly 46,000 people who work for Ford Motor Co. will be getting profit sharing payments on March 14, 2013, thanks to Ford's 2012 pre-tax profits of $8.3 billion.

The average check will be $8,300 because of the UAW-Ford collective bargaining agreement.

However, full year pre-tax profit of $8 billion, or $1.41 per share, and net income of $5.7 billion, or $1.42 per share, were each lower than a year ago.

Still, Ford had its highest fourth quarter pre-tax profit in more than a decade — when trucks and SUVs were a more significant portion of the U.S. product mix — at $1.7 billion, or $0.31 per share, an increase of $577 million from fourth quarter 2011. Ford has now posted a pre-tax operating profit for 14 consecutive quarters

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2013 Ford Fusion Hyrid

The Manufacturing Renaissance continues as does the reinvention of what we drive and how we drive.

An all-time record of 3,244 Fusion Hybrids were sold in December, compared to the previous mark of 3,010 in August 2010. The car is expected to achieve record January sales when results are announced Feb. 4. Nearly 70 percent of new Fusion Hybrid owners are new to the Ford brand, while Toyota’s conquest rate for its Camry Hybrid is only 53 percent.

“We’re bringing new hybrid buyers into the market, many of whom wouldn’t be considered traditional hybrid buyers,” said Amy Marentic, marketing manager, Global Small and Medium Cars. “There’s a sense hybrid buyers represent a pragmatic or green ethic. Fusion Hybrid is scoring with these audiences, but the car also puts some excitement into the segment through design; it shows hybrids can have beautiful and sophisticated styling. This, in turn, means different buyers.”

Not only are most buyers new to the Ford brand, early data suggest Fusion Hybrid is appealing to younger buyers outside the traditional hybrid vehicle demographic.

Ford reports new Fusion Hybrid buyers are five years younger than buyers of the previous Fusion Hybrid, dropping to 48 years old from an average of 53 years old. 2012 model year Toyota Camry Hybrid buyers have an average age of 54, according to J.D. Power and Associates PIN data. Moreover, 22 percent of Fusion buyers are under the age of 35; only 13 percent of Camry Hybrid buyers are that young.

Not surprisingly, Fusion Hybrid’s best-selling markets are San Francisco, Los Angeles and Washington, D.C., but Ford reports stronger sales in the more traditional buying areas of the Central, Southeast and Great Lakes regions – areas not known for strong hybrid sales. In these areas, retail sales more than tripled in December compared to the previous year.

Fusion Hybrid continues to have the fastest turnover rate (the number of days cars sit on dealer lots waiting to be sold) of any vehicle in the Ford lineup. Fusion Hybrid turns over in just 10 days on average.


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Restore The Roar: Manufacturing Renaissance

The Great Collapse

Manufacturing is Michigan. Michigan is manufacturing. The collapse of its manufacturing sector crippled Michigan for two decades. Finally, the roar is being restored in manufacturing and the state of Michigan. Yet there is much work to be done and there are some serious questions that have to be answered for the future.

The first five books in this ebook series are available at Vook.com and Amazon.

December Did Not Disappoint: Great Auto Numbers

Did you see these December sales numbers for the Big Three? Numbers were up around the world. Car makers from BMW to Volvo had a great month. However because of space limits I have decided to focus on what the Detroit automakers are doing. 

This is the Manufacturing Renaissance that we have been waiting for. Still, we have been burned by premature optimism in the past. Will these upbeat numbers continue through 2013? We will look at a forecast on that tomorrow. But for now, let's just feel good about these numbers.

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General Motors Co.’s (NYSE: GM) U.S. dealers delivered the company’s highest December sales in five years, with deliveries up 5 percent year over year to 245,733 vehicles.

December was also GM’s best retail sales month of 2012. Retail volume was up 38 percent from November – about double the industry’s estimated increase. Incentive spending was competitive with industry-wide levels, according to J.D. Power PIN estimates, and remains below many Asian and domestic competitors.

“All four GM brands increased their sales year over year in December and we were strong across the board in cars, crossovers and pickup trucks,” said Kurt McNeil, vice president of U.S. sales operations. “We also achieved an important fuel economy milestone. In December, GM became the first U.S. automaker to sell more than 1 million vehicles in a single year that get an EPA-estimated 30 mpg or better on the highway.”

December Highlights

1. Total GM passenger car sales increased 14 percent compared with a year ago. Crossover sales were up 2 percent and sales of trucks, which include pickups, vans and SUVs, were equal to a year ago.
2. Compared with November, total car sales increased 18 percent, truck sales increased 52 percent and crossover sales increased 22 percent.
3. Combined mini, small and compact car sales were up 52 percent year over year driven by continued strong Buick Verano, Chevrolet Spark and Sonic sales; a 27 percent increase for the Chevrolet Cruze; and a 72 percent increase for the Chevrolet Volt.
4. Cadillac posted a double-digit year-over-year sales increase for the third consecutive month.
5. Cadillac passenger car sales increased 64 percent year over year as the all-new ATS and XTS continue to establish themselves in the luxury market.
6. Year-over-year sales of the Chevrolet Silverado increased 6 percent and sales of the GMC Sierra were up 13 percent. GM pickup sales were the highest since September 2008.

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Chrysler Group LLC today reported U.S. sales of 152,367 units, a 10 percent increase compared with sales in December 2011 (138,019 units), and the group’s best December sales since 2007.

The Chrysler, Dodge, Ram Truck and FIAT brands each posted year-over-year sales gains in December compared with the same month last year. The FIAT brand’s 59 percent increase was the largest sales gain of any Chrysler Group brand for the month. December marked Chrysler Group’s 33rd-consecutive month of year-over-year sales gains.

For the year, Chrysler Group sales totaled 1,651,787 units, up 21 percent compared with sales in 2011. The Chrysler, Jeep®, Dodge, Ram Truck and FIAT brands each recorded significant sales gains during 2012 compared with sales in the previous year. The Jeep brand’s 13 percent sales increase in the U.S. helped push its global sales to an all-time record in 2012. Seven Chrysler Group models set annual sales records in 2012. 

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Ford Motor Company’s U.S. sales grew across the board in 2012, with cars up 5 percent, utilities up 7 percent, and trucks up 2 percent for the year. Overall, the Ford brand ended 2012 with 2,168,015 vehicles sold – the only brand to top 2 million U.S. sales.

“Ford finished 2012 strong, with retail sales showing improved strength as more customers returned to dealer showrooms,” said Ken Czubay, Ford vice president, U.S. Marketing, Sales and Service. “Ford’s fuel-efficient cars and hybrid vehicles showed the most dramatic growth for the year, and we achieved our best year for commercial vehicle sales since 2008.”

Sales of Ford’s small cars were up 29 percent in 2012, with 316,006 vehicles sold, and overall car sales were up 5 percent in 2012, with 760,646 sold. Focus sales gained 40 percent during the year, and the all-new C-MAX continues its strong selling rate. In the first four months of sales, 13,309 C-MAX vehicles were sold, making it the fastest sales start of any hybrid vehicle in the industry.

Ford again became America’s best-selling brand of utility vehicles in 2012, with 619,470 vehicles sold. Escape broke its 2011 record sales levels with 261,008 vehicles sold, up 3 percent. Explorer gained 17 percent for the year, with 158,344 vehicles sold.

Ford trucks continued to dominate in 2012 – with F-Series America’s best-selling pickup for the 36th straight year and 31 consecutive years as America’s best-selling vehicle. Overall, 645,316 F-Series were sold, a 10 percent increase versus 2011. Total Ford brand truck sales – including Transit Connect and E-Series – were up 2 percent for the year at 829,477 vehicles sold.

Ford also remained America’s largest maker of commercial trucks for 28 years, posting a 7 percent increase in 2012. That marks Ford’s best year for commercial truck sales since 2008.

Last month, Ford delivered its best December sales results since 2006, with 214,222 vehicles sold – a 2 percent increase.

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Restore The Roar: Manufacturing Renaissance, a series of e-books, is in production and should be released in early 2013.

Last Chance Mile: The Reinvention of an American Community is available now at Amazon, Barnes & Noble, and Abbott Press, along with Schuler Books & Music in Grand Rapids and Kentwood, Michigan.

Or you can simply click on the Buy Now button on this page for speedy delivery of an autographed copy of Last Chance Mile: The Reinvention of an American Community.