May 21, 2020 – 

When businesses across the country started shuttering in response to COVID-19, Nick Griseto was worried. As president of James Thompson & Company Inc. – a Delaware textile mill in Greenwood – Griseto has almost 45 employees working at their 125,000 square-foot facility.

“That’s one of our worst fears,” he said. “Having that many people making their livelihood with your company – you really don’t want to lay anyone off. Having a decent job, especially at a time like this is huge in peoples’ lives. It makes all the difference. Getting laid off is a terrible emotional drain for the employee and their family. I didn’t want to put anyone through that.”

Although deemed an “essential” business at the start, most of the mill’s suppliers shut down, so Griseto had to close for two weeks. However, after some strategy conversations with Sussex County’s Economic Development Director William Pfaff and some industrial pivoting, Griseto hit on the idea of distributing fabrics to mask manufacturers. This has become an especially crucial sector locally and nationwide as many Governors have mandated their use to help contain the spread of the virus.

“Within 24 hours of looking into it, we were getting feedback from local hospitals and manufacturers concerning what they needed and how to get it to them,” said Griseto. “We donated much of what we had on hand – but since then, we’ve found a few new suppliers that have remained open and we’re getting more product in. We’ve ramped back up and we expect to be back in full production by the middle of May.”

For groups and nonprofits making masks for first responders, James Thompson & Co. is still donating materials. But, Griseto is proud to be a part of the supply chain that is bringing in high-quality materials for manufacturers that are engaged in larger-scale production too.

“Now that we have the right suppliers, we’re getting in great material,” he said. “To be the proper mesh for masks, it needs an antimicrobial agent on it – it’s a sort of chemical finish.”

It took flexibility and ingenuity, by Griseto believes the changes his company has made accomplishes two of his most important goals; being an asset to the community and providing a sustainable workplace for his employees.

“I think this is a drive that most entrepreneurs have: contributing to society,” he said. “In the past we’ve donated fabrics and clothing to schools, but with this, we feel like we’re stepping up in a crisis. It’s important for any manufacturer to be an active part of the community their based in.”

Storied Past, Bright Future

One of the oldest textile mills in the country, it’s a bit of luck that James Thompson & Co. has become a part of the ‘first state’ community. Founded in 1860 by a Scottish immigrant named James Thompson, the mill opened its doors in the thick of the industrial revolution in Valley Falls, New York.

Over the intervening century in a half, they’ve brought myriad fabrics, dyes and finishes to market. In 1972, they moved their mill operation to the 136-acre site in Greenwood where it still resides.

In 2016, the last descendent of James Thompson to run the company, Robert Judell, passed away at the age of 92. The estate had dwindling interest in running the company, explains Griseto, so he was hired to manage or sell it. Seeing great promise in the well-established company, Griseto, and his wife Terry ended up buying it in late 2019.

“Terry and I helped manage it for four years until purchasing it,” he said. “Since then we’ve done a lot of cleaning up and streamlining of the operation, sort of trying to figure out who we are.”

Up until last year, James Thompson & Co. had been maintaining a headquarters on Park Avenue in New York City. Griseto noticed immediately that there were significant cost benefits to consolidating the operation and moving all functions to Delaware. He notes that real estate costs, commuting, logistics and access to a diverse, affordable labor pool all helped make that decision easier.

“The office in New York was only about 2,000 square feet, but between rent, taxes and utilities, we were spending over $300,000 per year,” said Griseto. “That doesn’t include labor costs. Now everything is here in Delaware; the corporate and sales headquarters and all our manufacturing. We’ve also begun to renovate the plant.”

At a time when many businesses are contracting and taking a wait-and-see approach to business, Griseto is bullish with his bet on Delaware. Not only is he confident that his COVID-19 pivot was enough to keep his 45 employees busy, he has expansion plans that could put hundreds more people to work at his facility.

“We have room to expand here and we’re going to add additional buildings – thanks to some planning we’ve done with Sussex County’s public works, waste treatment capacity issues are being resolved so we can keep growing,” he added. “Our goal is to increase manufacturing and reintroduce printing to our facility again. I plan to have disabled vets working here to do the printing on military uniforms. In two or three years, we could have up to 300 to 400 people working here.”

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When it comes to air conditioning in the workplace, many people focus on the temperature and the bottom line. But for many industries, humidity and air quality control are just as important as comfort and cost. Enter AirGreen’s liquid desiccant cooling system, which covers all the bases. 

The New Castle, Delaware, company’s patented system controls temperature and humidity while cleaning the air — and it does so at a significant savings. The design can save up to 50 percent to 60 percent of the energy that other commercial and industrial systems require.

It’s easy to see why AirGreen is “poised to position itself for a period of substantial growth,” says CEO John Hammond.

Founded in 2013, AirGreen is the brainchild of British-born Andrew Mongar, an avid environmentalist and business professor. Since securing funding was no easy task, AirGreen hired Hammond to help the company get up and running.

Hammond — who has a bachelor’s degree in chemical engineering from the Georgia Institute of Technology plus executive graduate business classes at both Wharton and the University of Richmond — was no stranger to Delaware. He’d spent 13 years with the DuPont Co. in various roles.

He was also familiar with startups. “I’ve had numerous experiences leading, helping and growing startups over the past 25 years, starting with building a joint venture for DuPont in 1997,” he explains. He then helped startup a chemical industry dot-com and, later, a high-tech composites firm. Most recently, he was a consultant for defense, aerospace and chemical industry clients. 

AirGreen’s team was impressed with Hammond’s experience in chemical engineering, process controls, product and business management and business development. 

Hammond came on board in September 2018. Six weeks later, Mongar sadly passed away. Despite this loss, AirGreen stayed the course thanks to its committed staff and investors.

A Better Process

AirGreen completed its Series A round of financing in January 2019 and spent the bulk of that year moving the technology toward commercialization while maintaining the energy savings integral to Mongar’s vision.

To appreciate AirGreen’s efficiency, it helps to understand how most industrial air conditioners work. To effectively dehumidify the air, these traditional systems drop the temperature to the dew point. Often, they then warm the air back to an acceptable level. The process consumes considerable energy.

AirGreen’s close-looped liquid desiccant system avoids the inefficient rollercoaster process. In four stages, the air conditioner removes moisture from the inbound air via direct contact with concentrated liquid desiccant that circulates through plate heat exchangers. Cool fluid (typically water or water/glycol) removes the heat at each stage. The conditioned air is typically about 60 to 65 degrees Fahrenheit with 40 to 50% relative humidity. (The regeneration process is similar.) 

AirGreen’s Clean, Comfortable Air

Because the air is drier, most workers do well with a higher thermostat setting, which also saves energy. But the technology’s application goes beyond human comfort. 

“While there are broad industrial applications for facilities seeking to lower their energy footprint or provide cool and dry conditioned air, we’ve recently been focusing on applications where humidity control is paramount,” Hammond says.

Consider indoor growing facilities for leafy greens, vegetables, hemp for CBD oil or medical cannabis. Not only do these spaces have hot grow lights, but they also have moisture-producing plants. “Proper environmental controls help growers avoid quality issues, such as mold, and promote healthy plants,” Hammond notes.  

Humidity control is crucial in other facilities. For instance, AirGreen’s technology is an advantage for schools that close for months at a time. “They get hot and moist, and mold grows,” he says. “The buildings would benefit from being kept dry.”

Because the system captures and neutralizes airborne pathogens, dust, allergens and microbes, it also has applications for hospitals, research facilities and other sterile environments.

“AirGreen is looking forward to demonstrating its unique capability to chemically scrub the indoor air streams of such impurities as mold, viruses and other pathogens in a way that traditional equipment can’t accomplish,” Hammond says. “AirGreen continues to seek local applications for this unique benefit in Delaware schools, hospitals and other workplaces where indoor air quality can be of concern to residents and workers.”

The flexible system can run with heat pumps or renewable energy sources. It can replace an older unit yet work with existing ductwork. Or, it can also pretreat and dry air alongside an established unit.

Meeting a Worldwide Need

AirGreen has already demonstrated its ability to provide superior indoor air quality in applications requiring substantial and precise humidity control, Hammond says. “It is doing this at considerably lower energy costs at four applications in Delaware.”  

To best service the units, AirGreen is concentrating marketing efforts in the region. After a certification process is in place for HVAC contractors, the company will broaden its reach. 

Delaware’s proximity to urban areas on the East Coast has been an advantage from the start.

“Delaware was a great choice for a high-tech business,” Hammond says. “The location provides access to a skilled workforce, and it’s a business-friendly state in general.”

He’s pleased with the Delaware Prosperity Partnership’s unique approach to attracting businesses to the state, and he appreciates the state’s size, which makes it easy to form beneficial relationships. Additionally, the Delaware Angel Investor Tax Credit appealed to AirGreen’s investors. 

From New Castle, AirGreen is preparing for a much larger stage. The demand for air conditioning is increasing in India and other countries with emerging economies and a growing middle class.  By 2030, there will be an estimated 4.5 billion room air conditioning units worldwide compared to 1.2 billion today. But the technology has not kept up with the demand for efficiency. 

“We intend to provide part of the solution to this global issue,” Hammond says. “We have found that companies are interested as long as new technology provides a tangible return on investment, and AirGreen definitely does just that.”

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Option: 1

May 7, 2020- 

From Upscale to Down-Home, Eateries Get Creative

Market disruption can often lead to new ways of doing things. Delaware’s highly regarded chefs and restaurant owners wasted no time pivoting when COVID-19 restrictions went into place in mid-March.

A Temporary Pivot

Houston-White in Rehoboth Beach is a sophisticated steakhouse, but since the governor’s state of emergency, owner Megan Kee has been making shepherd’s pie, fajitas, crab cakes and prime rib. There is only one dish a day, and two employees fill the orders.

“I call it country comforting foods,” Kee says. “It’s the things people can afford and enjoy.”

In Lewes, Meghan Lee of Heirloom did not waver from her concept, but she did adapt. The high-end restaurant holds special pop-up sales featuring soups, sides, sourdough bread and specialty whipped butters and desserts made by Chef Matt Kern, a James Beard semifinalist, and his team.

And then there’s V&M Bistro of North Wilmington, which is posting Facebook photos of towering pizza boxes. To keep the service level of fine dining, owner Vincenza Carrieri-Russo is the only one who answers the phone, and she greets customers with a warm, polished voice.   

Not surprisingly, operations accustomed to carryout have had an advantage. Kick n’ Chicken, which has locations in Milford and Lewes, was built around takeout.

“People can come in and get a Styrofoam container with a meal in it for $8 to $10 and walk out the door,” says owner Charlie Pollard. “If you’re a dine-in restaurant and want to make a conversion to takeout, it’s not a smooth transition.”

But, as SoDel Concepts proves, it can be done. The Rehoboth Beach-based hospitality group kept all but one of its 12 Sussex County restaurants open. There is a new website for online ordering and payment, and the restaurants are promoting contactless curbside delivery.

Big Fish Restaurant Group, also based in Rehoboth Beach, took another approach. The company temporarily closed all its downstate businesses except for Big Fish Seafood Market, which sells fresh and prepared foods. The slim space previously handled takeout for Big Fish Grill next door. But today, you might find specials from its sister restaurants, including Sazio and Salt Air. In downtown Wilmington, Big Fish kept Mikimotos and the neighboring Washington Street Ale House open because they already had a brisk takeout business, says Holly Monaco, director of operations for the restaurant group.

“Mikimotos only has sushi available,” she adds.

As with Big Fish Seafood Market, Crow Bar in Trolley Square has become point central for Bryan and Andrea Sikora’s three Wilmington restaurants, which include La Fia Bistro and Merchant Bar. A large window facing Delaware Avenue has become the “takeout window.”

Employing Ingenuity

In Newark, Grain Craft Bar + Kitchen similarly turned a window into a drive-through service.

“Pretty much everything we’ve done has been a result of the staff just figuring things out,” says co-owner Lee Mikles. “The bartender suggested the handwritten thank-you notes in each order. We include a roll of toilet paper with some orders.”

Toilet paper aside, Grain might keep some of the new approaches, he says.

Thompson Island Brewing Company, part of SoDel Concepts, used supplies on hand to make hand sanitizer, which the staff tucked into customer carryout bags. The brewery operation is not idle, however. Thanks to lobbying by the Delaware Restaurant Association, restaurants can sell beer, wine and cocktails, which traditionally make up a large part of their revenue. Many now offer half-priced bottles of wines. Iron Hill Brewery & Restaurant, which has three Delaware locations, began selling growlers of pre-batched Margaritas, along with growlers of beer.

Since alcohol cannot exceed 40 percent of the sales transactions, Grain developed family meals for $60. Family meals, which typically serve four, also have become a popular offering at restaurants like Corner Bistro in North Wilmington.

“We knew we could only sell so many duck meatballs or ahi tuna,” says co-owner Micky Donatello of the regular menu. “Parents are keeping their kids entertained. They don’t have time to go to the grocery store. We said: ‘Let’s do family meals at a reasonable price — something kids will eat.’”

Although Corner Bistro is known for its French-influenced food, Donatello began serving up foil pans of whole chicken, lasagna, chicken piccata, braciola and meatloaf dinners.

Takeout Market

Some restaurants have become neighborhood corner markets. In Milton, Good Morning Breakfast Nook sells fruit, vegetables — even toothpaste.  In Newark, Caffe Gelato’s new “Market Place” has an extensive list of raw meats, baked goods, produce, condiments, fresh pasta and seafood. Iron Hill’s “Craft Market” offers fresh produce, dairy products, meats, toilet paper and paper towels.

“All of these offerings allow us to keep people employed, help guests who are unable to or may not be comfortable with going to the grocery store and the people who regularly deliver food to our restaurants,” says Iron Hill CEO Kim Boerema.

Why go to all this effort? For one, it helps keep the lights on. For another, at least some staff remain employed.

H.E.L.P. and a Serving of Hope

In Delaware, the food service industry normally employs about 50,000 workers – approximately 10 percent of the state workforce, according to the National Restaurant Association. To help these workers, the State of Delaware launched the H.E.L.P. loan program for the restaurant industry and has since raised the cap for eligibility. In addition, Delaware Restaurant Association (DRA) started the Restaurant Industry Emergency Action Trust or E.A.T.s program to distribute individual $500 grants to industry employees.

“All of our restaurants are swimming in an ocean without a lot of lifeboats,” says Carrie Leishman, president and CEO of the DRA. “They’re doing what they can to stay afloat, keep their people employed and stay relevant in their communities — there’s no rulebook.”

People traditionally connect around food, and that connection is proving even more important in these times of physical distancing. Despite their own hardships, food service owners, operators and employees have been playing a vital role for their communities throughout the COVID-19 crisis. And community members have been responding by embracing the call to support their favorite eateries with takeout and delivery orders.

Donatello, the Corner Bistro co-owner, is grateful.

“It’s a gift that I am considered an essential worker,” he says. “I am truly grateful for the people supporting us. I’m overwhelmed.”

***

To find out which restaurants offer carryout or delivery, visit Restaurants that Offer Takeout and Delivery on Facebook, Sussex County Carryout at RehobothFoodie.com or Businesses Where You Can #ShopLocalDE on the Delaware Division of Small Business website.

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Option: 1

May 7, 2020 – 

How prepared the United States was to combat the sudden onset of COVID-19 is a matter of some debate. But, what’s beyond question is that businesses across the country have risen to the defense of their fellow Americans by pivoting production toward filling shortages of desperately needed supplies.

It’s been no different here in Delaware. One of the first industries to leap into the fray was Delaware distilleries. Though you can count them on one hand, Delaware’s distilleries have quickly retooled and are pumping out hand sanitizer to help combat the spread of the novel coronavirus. Interestingly, an activity that would have earned them a quick visit from a regulator back in non-crisis times has now become a crucial function.

“As distilleries, we’re not typically legally allowed to make hand sanitizer, but the Food and Drug Administration (FDA) and Alcohol and Tobacco Tax and Trade Bureau (TTB) loosened up their regulations so we could help fill this need that is in our communities right now,” said Smyrna’s Painted Stave Distilling co-owner Mike Rasmussen. “They require us to use a formulation designed by the World Health Organization that can be made anywhere in the world in emergency situations.”

A mix of ethanol, water, glycerin and hydrogen peroxide, the product ends up being around 80% alcohol to ensure it’s strong enough to kill viruses on contact, said Rasmussen.

With the goal of supplying local first responders, fellow distillery owner Ron Gomes said they felt a strong motivation to use their technical know-how and facility to help.

“Mike and I got into business to help our community rise and prosper,” he said. “It’s natural for us, part of who we are, to want to help. We’ve been stepping up, with the support of our families and friends, since day one. We’ve invested and sacrificed too much in our community to stand by idly and watch it struggle and suffer.”

By mid-April, they’d distributed roughly 1,650 gallons to essential agencies like police departments, firehouses and hospitals with another 1,300 gallons ready to push out. Not sure yet if they’ll make their hand sanitizer available to the public, they’re focusing on supplying crucial agencies for as long as that need exists. At present, that demand doesn’t seem to be going anywhere, said Gomes.

“We’ve received inquiries for 10- and 20-fold our current production,” he added.

Marissa Cordell, owner of EasySpeak Spirits in Milford, had a personal reason for starting to produce hand sanitizer in early March.

“My father-in-law was in the hospital, and they couldn’t find hand sanitizer anywhere, so we decided to make some for him,” she said.

Cordell quickly learned that there was a nationwide need. She halted production on everything her distillery was making and switched over to hand sanitizer.

“We’ve had to use our small-batch alcohol that typically sells at our bar and liquor stores as craft spirits for hand sanitizer,” she said. “Staff has been working around the clock. We’re also using all of our fermenter space and all of our still time for this instead of making our bourbon, vodka, rum and gin.”

Focusing on production, Cordell says anyone who needs hand sanitizer can come to the distillery and pick it up curbside.

“Our customers are everyone in the state of Delaware – Beebe Healthcare, the Amazon distribution facility, healthcare businesses and construction companies – you name it, we’ve made them hand sanitizer,” she said. “We currently only have smaller sizes available, but they change weekly due to extreme shortages in packages. Our recent packaging has been 6-ounce spray bottles for $6.”

Further downstate, both Beach Time Distilling in Lewes and the mammoth Dogfish Head Brewery in Milton are no exceptions.

Beach Time Distilling has been producing hand sanitizer for postal workers and first responders and delivering them in 1-gallon cans. Dogfish Head is working directly with the state to deliver bulk supplies of sanitizer.

“I never thought Dogfish Head would be in the sanitizer business,” said Sam Calagione, found of Dogfish Head, in a press release. “But this is a time of crisis, and necessity is the mother of invention. It is our duty to do what we can to keep as many people safe and healthy in our community.”

The brewery noted it is selling sanitizer directly to the state at market rates with 100 percent of the profits going into a fund to support Delawareans affected by COVID-19.

Speaking for all businesses, Cordell said she’s been happy to help – especially since everyone has a stake in the outcome.

“It’s times like these that it’s important for our community to remember that we’re all in this together,” she said. “And, we all need a shoulder to lean on.”

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Option: 1

April 21, 2020 – 

The entire business landscape has been disrupted by the COVID-19 pandemic, and small business owners – who are the backbone of business in America – are among the hardest hit by the crisis.  Part of DPP’s job is to work closely with the Division of Small Business and economic development partners throughout the state to ensure that businesses in Delaware are connected to the resources they need to thrive. DPP asked John F. Fleming, district director of the Delaware District Office of the U.S. Small Business Administration (SBA), for his perspective and advice to businesses as they adapt to the consequences of living in a COVID-19 world.

Fleming is passionate about small business in America and has dedicated his career to helping small businesses thrive. Prior to his current role, he was deputy district director, lead business development specialist, chief credit officer, marketing specialist and public information officer for the SBA’s Delaware District Office. He also has been a senior federal policy advisor for the White House Strong Cities, Strong Communities initiative and was a non-commissioned officer in the United States Marine Corps.

Fleming, whose wife is a small business owner with a coffee shop/convenience store in Maryland, recently spoke with DPP by telephone to provide his perspective on the COVID-19 crisis and the support available to small businesses. His main message? That small business owners shouldn’t give up – there are many resources available and plenty of personnel to help.

DPP: What exactly does the SBA Delaware District Office do?

JF: SBA is a federal agency that helps small businesses start, grow and succeed through a variety of programs – usually lending, contracting or technical assistance. We have a fourth area, which is very prominent right now, which is disaster assistance. Locally, we’re more of a marketing and outreach operation. We help people learn about SBA programs and how to navigate them.

DPP: What role is SBA playing right now, during the COVID-19 crisis?

JF: Our role really has become 100 disaster-related. We do everything from webinars to helping individuals with the loan application website for the Paycheck Protection Program of the CARES Act. We’re also doing public outreach – two to three interviews a day with radio, TV, print – getting information from our headquarters and passing that on to Delaware small businesses. And I see SBA as having an even bigger impact in the coming months and maybe even years to help small businesses recover from this.

DPP: What kind of numbers are you seeing for the CARES Act?

JF: The latest numbers we have in Delaware are about 2,000 loans for almost $600 million under the Paycheck Protection Program, and nationwide there have been over a million applications up to the $349 billion limit. The SBA Administrator and the Treasury Secretary have urged Congress to put more money into the program.

DPP: Along with information on how to navigate the CARES Act loan process, how else are you helping small business owners?

JF: We’re giving advice on timing, when to apply and how to use the money properly. What to expect. Although we’ve hit the $349 billion limit, we do fully expect to be funded again very shortly. Don’t stop what you’re doing in terms of the loan application. You’ll still want to work with your lender, and you’ll want to get that application on your desk ready to go. That way, when the money gets turned back on, the lender will be able to process your application immediately.

DPP: So the message is not to give up.

JF: Don’t give up. Hang in there as best you can. More money is coming, and we’re going to do everything we can to try to help you recover. Keep reaching out to SBA, because we may have other programs that could help you. For example, part of the CARES Act pays six months of payments for everyone who already has a regular SBA loan or is a new borrower by September 30. And it’s not a deferment – it’s a grant for six months. It’s a huge benefit, and there’s no additional paperwork for existing borrowers. The lenders just get notified.

DPP: Any other advice?

JF: Don’t fall for the scams that are out there. Don’t give out personal information, especially to a dot-com website. We’re a dot-gov website, and legitimate CARES Act emails will come from a dot-gov email. Don’t listen to rumors or what you’ve heard from someone else – go right to the material and read it yourself. The facts are on the Department of Treasury website, with FAQs and the law itself. It’s very good material, and it clears up a lot of confusion.

DPP: In addition to SBA, where else can small businesses turn to for help?

JF: If people need advice on how to run their businesses, I always recommend that they reach out to our resource partners: the Small Business Development Center at the University of Delaware, the Women’s Business Center in Wilmington and the volunteer organization called SCORE. All three of these can help quite a bit with guidance through the whole business process. We also have been referring a lot of folks to the Delaware Division of Small Business, both during the COVID-19 disaster as well as in pre-disaster times.

DPP: How is the COVID-19 crisis affecting your work on an individual basis?

JF: My day is emails and interviews, calls and webinars all day. And then, at night, I’m doing emails and texts. Sometimes I’m done at midnight, and sometimes I’m done at 2 in the morning. I get asked sometimes, “Why did you email me at 4 a.m.?” and I say, “Well, because that’s when I woke up.” I’m just here to help small businesses as much as I can.

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Option: 1

April 13, 2020 – 

As the COVID-19 pandemic has swept throughout the United States, the entire business landscape has been disrupted. Delaware Prosperity Partnership, however, is continuing its work to attract, grow and retain companies, build a stronger entrepreneurial and innovation ecosystem and support private employers in identifying, recruiting and developing talent throughout Delaware. Part of DPP’s work involves engaging with representatives from various sectors of the economic development arena to discuss how the crisis is affecting what they do and what the disruption means to Delaware.

Lindsey Cannon has been a director/site selection consultant with Quest Site Solutions in Greenville, S.C., focusing on industrial manufacturing and distribution, since 2018. She previously worked in site selection with McCallum Sweeney, also in Greenville, S.C., for almost 10 years, and in various roles with the South Carolina Department of Commerce for more than two years.

Before participating in the statewide familiarization tour DPP hosted last year, Cannon had never been to Delaware. Among her takeaways? The fact that you literally can get anywhere in the world from Delaware – and what an asset such convenience is to businesses looking to locate and grow here.

Cannon recently spoke with DPP by telephone to provide her perspective on the COVID-19 crisis and what kind of pivots the pandemic is requiring of the business world.

DPP: Before participating in last year’s Delaware Familiarization Tour, you had never been to Delaware. What struck you the most?

LC: One of the things that really stood out to me was how close you are to Philadelphia International Airport. That was eye-opening and probably the number one item that stood out to me. It really gives you an opportunity to really sell yourself as in, “Delaware may not have its own international airport, but the state doesn’t have all of the expenses and liability that go with running an airport and you still get access to all of those ‘big city’ things.” Even being in the southern part of Delaware, you’re still very, very close to the international airport. From anywhere in Delaware, you can get to the international airport and get around the world.

DPP: This is America’s first experience with a pandemic since 1918. From a site selector’s perspective, what are you experiencing?

LC: For active projects, getting to a good stopping point in the process is what most clients are working toward – so there’s still some activity there currently. For projects that are close to announcement, businesses are hitting the pause button. They still believe they’re going to build the facility, but they don’t want to announce it and then COVID-19 takes longer than projected and they have to reallocate resources in a different direction.

DPP: What are you seeing in manufacturing, the sector you specialize in?

LC: If you look at the heart of the crisis right now, it’s tourism, retail and restaurants that have been hit the hardest. While manufacturing has certainly been impacted, it has not been hit as hard since many of those operations are considered essential. Depending on how long the COVID-19 pandemic continues, though, it could have a substantial impact on the manufacturing and distribution sectors because tourism, retail and restaurants aren’t buying as they did in the past, so that’s going to have an impact on companies.

DPP: What about the supply chain?

LC: I think all companies are going to reassess their supply chains. The pandemic has put a lot of stresses on a variety of industries, and I’m curious to see how supply chains evolve. Because as companies reassess, it may lead to some new opportunities.

DPP: What does the impact to the workforce look like going forward?

LC: Looking at real-time job-posting data, even through all of this, there is not currently a drop in job postings that I would have expected to see. There is definitely a big drop-off, but it’s not as substantial as I expected. It’s going to be interesting for people that have been laid off in these current times. Will they be picked up by “key essential businesses”? Some of those employees may end up working in, say, a manufacturing facility and have benefits they didn’t have before. Some employers – I think it was Costco and a few others – have said, “Hey, we’re giving all of our employees $2 more an hour during this time.” But is that going to set a new precedent? Workers will have adjusted to living on more dollars an hour. So when this is over, will they go find a job where they continue to get that $2 more an hour? It’s going to be extremely interesting to see the impact that has.

DPP: How are the effects of the COVID-19 crisis affecting your daily work?

LC: I’m still working on project work, but I also have been able to cross a few things off my to-do list. Some of them had been on my list for a year or two! I’m trying to personally take advantage of the current situation, because at some point the crisis is going to end. And I think companies are doing what I’m doing, saying, “OK, let’s get everything in order that we can now so that when it’s over, we’re ready to proceed.”

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April 9, 2020 – 

At 5,000 feet in the air, Patrick Callahan’s plane pitched into a spiral. Suddenly, Callahan lost his sense of direction. Everything was a blur. “I don’t know where I am,” the CompassRed founder told his flying instructor. The pilot, who was teaching Callahan about spin recovery, remained calm. Find the red section on his compass, and all would be well.

Today’s decision-makers often feel similarly disoriented when faced with data. Every search query, every Facebook post and YouTube video contributes to the digital mountain of information.

“Data can be so confusing – it’s everywhere,” says Callahan.

When he decided to start a predictive analytics and insights company, he hearkened back to the basics of navigation. He named the agency CompassRed.

Callahan could have built his business in San Francisco, where he started CompassRed in 2012. But for this adventurous entrepreneur, Delaware was a better choice.

“You can build a massive company in Delaware and service everyone who is two hours away by train – New York, Boston and Washington, D.C.,” he says.

At the same time, he notes, it’s still an affordable place to raise a family.

A Passion for Information

Born in Flint, Michigan, Callahan spent his early life in New Orleans. He moved to Philadelphia to study business and economics at Drexel University, where he met his future wife, Jennifer. After graduating from Widener University School of Law, Callahan practiced for six months.

“I did not like it all,” he says.

He felt the opposite way about data and analytics. In the 1990s, he worked for Andersen Consulting, Hesta Data Systems and Proximitree. In 2003, Callahan and Lee Mikles founded the Archer Group, a digital marketing agency, in Wilmington.

Archer – whose clients included Wawa, the convenience store and gas chain – broke new ground. But by 2011, the partners were ready for new challenges. They passed the company’s daily management to their other two partners and, in early 2020, Archer was acquired by Chicago-based Bounteous.

Seeking new opportunities, Callahan and his family packed up a U-Haul and drove across the country to San Francisco. He and his wife took sailing lessons, and he took flying lessons. But it wasn’t all fun and games: Callahan was mining the high-tech area for inspiration.

“I went to Meetups,” he recalls. “I took every meeting I could with people in different careers.”

He even started Meetups for data buffs, one of which attracted 500 people. Callahan was onto something. Gnip, a social media application programming interface (API) aggregation company, paid him to organize similar meetings, including one in London.

In 2011, the West Coast was indeed a hub for tech innovation. But after starting CompassRed, Callahan realized that the East Coast was a better place to scale his business.

“In San Francisco, a startup is a small business in a massive pond,” he says. “The resources were so expensive – salaries were three times the amount.”

In Delaware, he could raise his two children and rub shoulders with influential legislators who had just as much impact as their colleagues in California. Fortunately, the family had kept their Delaware residence.

Coming Home to Delaware

Initially, CompassRed focused on social media data, which can drive revenue. But real insight comes from combining relevant data, Callahan says. For instance, if you tried to predict baseball fan attendance in the future, you might consider the past attendance given the opposing teams, the game dates – weekday or weekend – the time of day and the division rank.

To sort through these complex piles of digital information requires data analysts, data scientists and data visualization experts, along with technologists. CompassRed currently has a team of about 15 and uses contractors as needed. In 2015, Darren Mahoney, who was formerly with Capital One, became his business partner.

“He and I used to run marathons together and dream about the agency we always wanted,” Callahan says.

The staff is comfortable with algorithms, predictive analytics, machine learning and artificial intelligence.

“Data science provides insights,” he explains. “Machine learning offers predictions, and artificial intelligence lets you act on those predictions.”

Data science, for instance, can determine if there is a need for a self-driving car. Machine learning predicts how and when the car would engage in certain functions, and AI controls the car’s action based on those predictions.

Most customers want to know “where the money will be saved or made,” Callahan says. Consequently, CompassRed often works closely with product managers. Frequently, CompassRed helps knit the operation and marketing sides of a business together, whereas, in the past, they functioned in separate silos. The technology, however, does not replace the human decision-maker, he notes.

If all goes as planned, CompassRed will move to CSC Station in Wilmington later this year. Owned by Delaware-based CSC, a global company, the former Pennsylvania Railroad Building is next to the Joseph R. Biden Jr. Railroad Station.

The location will give CompassRed easy access to clients and talent, both of whom might live in Philadelphia. For Callahan, however, Delaware is the perfect place to work, live and enjoy arts, culture and other amenities.

“You can quietly live an exciting life and benefit from some incredible resources,” he says. “I don’t know any place quite like this.”

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