313 Industries makes parts and a difference in people's lives | Crain's Detroit Business

2022-09-10 03:21:21 By : Ms. Lydia Xiang

As the co-owner of manufacturing company 313 Industries, Rita Fields is trying to change the game.

The Warren-based company, which makes parts and kits for defense, mass transit and commercial vehicles, is a certified woman-owned business, woman-owned small business federal contractor and minority-owned business.

That's rare in the field of manufacturing.

Among manufacturing jobs in the U.S., 72 percent are filled by men. Meanwhile, 66 percent of manufacturers are white and less than 11 percent are Black, according to a Zippia analysis of Census data.

"We know what this industry has been. We know what it can be," Fields said. "We started this business with that in mind. We want to create a lane in this field for people who may not know how good it is."

Every business wants to be profitable and make a name for itself. With 313 Industries, it's about more than that. The Black woman-owned and operated parts manufacturer is working not for a seat at a table traditionally reserved for white males, but to build a new table with seats for anyone who wants to put in the work. The company also places major emphasis on giving back to the less fortunate.

"As a business owner, I think you should want to do more than turn a profit," Fields said. "If that's all you're doing, then you're not really doing anything."

Fields and her husband Dan Kendall established 313 Industries in 2016, working out of their Southfield basement. Kendall has decades of experience in engineering, while Fields career has been in human resource management and executive leadership. Kendall had designs on starting a manufacturing company, and having a spouse familiar with the HR side of things made the process that much easier.

313 Industries moved to its current 3,500-square-foot location at 32518 Dequindre Road in Warren in 2018. It has another 3,500-square-foot shop in Warren at 30150 Ryan Road that opened in May. In the Dequindre Road space, employees work on parts for U.S. Department of Defense vehicles, including tactical military kits for installation in military vehicles. The company has manufactured protoype, service and production metal parts for various systems of armored ground vehicles. 313 Industries has also produced components for Howitzers — long-range weapons used in military combat — as well as parts for mass transit and commercial vehicles. The bulk of its business, though, comes from the U.S. government.

"It took us some time to gather contracts because we've been in spaces where people would assume we'd do less-than-quality work because we're a woman- and Black-owned business," said Fields, who has a bachelor's degree in English and psychology, a master's in human resource management and a doctorate in executive leadership. "We know this is a space traditionally not occupied by women or people of color, so we've worked hard to build our reputation."

That reputation has earned 313 Industries a five-year contract with Warren-based Detroit Arsenal. The deal is for $19 million, but can balloon to $100 million in the event of a major military conflict. So far, 313 Industries and three competitors have been awarded about $3.2 million for their work, with $2.8 million going to 313 Industries.

"We look at this contract as we're working to protect those servicepeople and their families," Kendall said. "We work hard on those parts and kits because we know what can happen if something goes wrong, and we don't want that."

The manufacturer is working on parts and kits for current and upcoming military armored ground vehicles, along with projects for Sterling Heights-based companies General Dynamic Land Systems and American Rheinmetall Vehicles.

A personal, low six-figure investment has turned into quite the enterprise for the 313 Industries owners, who employ seven people. In 2019, revenue increased 200 percent over the previous year. In 2020, revenue jumped 300 percent over 2019. Last year, revenue of more than $2.5 million was up 350 percent year over year, according to Kendall.

Fields and Kendall expect a slight dip in revenue this year, but not because of slow business. The company this year has cut back on projects to focus on operations. The goal is to move into a 10,000-15,000 square foot space, with all operations under one roof, within the next three years.

Part of 313 Industries' mission is to give back. Here's a look at how it does that: Helping the less fortunate

Supporting nonprofits The manufacturer annually gives 5 percent of its net profits to Southeast Michigan nonprofits, including:

Fostering opportunity 313 Industries' apprenticeship program with Macomb Community College offers students 100 percent paid:

Profits are important for the growth of any business, but all of that comes secondary to 313 Industries' real mission.

"We're a business, sure. We want to be profitable," Kendall said. "But (Fields) has made it so we're more of a social enterprise."

That social work includes donating 10 percent of gross revenue to the needy — about $400,000 since 2016. The company also contributes 5 percent of net profits to metro Detroit nonprofits. The largest donation so far — $10,000 — has gone to Lighthouse, an Oakland County-based organization that works to aid those experiencing poverty. The September 2021 gift, according to Lighthouse President and CEO Ryan Hertz, helped support costs for converting one of the nonprofit's transitional housing properties into an emergency shelter for families facing homelessness during the height of the COVID-19 pandemic.

"This gift meant much more than $10,000 to me," Hertz said. "I was honored and moved by the opportunity to play a part in (Fields) making such a meaningful philanthropic gift to the organization that assisted her in her own time of need, specifically for the purpose of providing emergency shelter to homeless mothers."

Fields' relationship with Lighthouse is a strong one. As a teen, she sought help from South Oakland Shelter, which merged with Lighthouse of Oakland County in 2019. She had dropped out of school and left an abusive home while pregnant. For a stretch, she lived behind a grocery store in Royal Oak. Following a stint at SOS, Fields returned to Highland Park High School to earn her diploma, then went on to college and a variety of careers in secondary education, human resources and consulting.

Fields worked her way back to the nonprofit when 29 years later she was named chief talent and strategy officer in August 2020 — a position she still holds.

Fields and Kendall, himself a former drug addict and alcoholic who is now a minister, are deliberate with their philanthropy. The aim is to always help those who may be forgotten otherwise.

"I needed that help. We all need help at points in our lives," said Fields, who previously served on the Lighthouse board of directors. "What we want to do is make sure everyone we can help gets that help, because people's lives can see major turnarounds if they just have some support and someone to believe in them."

"This part is big for us. We're here not only to run a successful company, but to provide a beacon of hope for as many people, organizations as we can," Kendall said.

Cierra Hicks is a prime example of how 313 Industries is working to change the demographics of the manufacturing industry.

Hicks, a Macomb Community College freshman, is the first student in the company's fully funded machinist apprenticeship program. Through the federally registered program, a partnership with MCC, tuition, books and supplies are paid for by 313 Industries. Students who work at 313 Industries are paid a salary — even while in class. Those who complete the program receive 100 percent tuition reimbursement if they seek a post-apprenticeship bachelor's degree.

The apprenticeship program is a welcome opportunity for Hicks, who planned to pursue a career as a nurse. Kendall made Hicks aware of the program during her senior year at Warren Cousino High School.

Hicks admits she initially didn't think much of the program.

"But when (Kendall) explained it to me I thought, why not try it," Hicks said. "Honestly, I look at this as a blessing. College is a big thing. You're thinking about tuition, books, and then someone comes along and gives you a great opportunity. There are a lot of roads you can take in this field. I'll be able to do anything once I'm done with the program."

The hope is that Hicks stays with 313 Industries after completing school and the apprenticeship program. Fields said the goal is to enroll more students into the apprenticeship program, which would provide them with a path into the manufacturing field.

"This industry is run by middle-aged white men. They've been picking from the same pool of candidates for decades," Fields said. "We're going to continue to grow as a company, and we're going to continue to grow the pool of candidates seeking jobs in this field."

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