The Faces of Supplier Excellence
The 2024 Graduates of the National Black Supplier Program at the Detroit Athletic Club, February 13, 2024
Black suppliers are scaling to meet the needs of large corporate customers with the aid of new business models, technology innovation, new market entry and other levers. The National Black Supplier Development Program is helping black founders position their companies for success, and in doing so is helping to close the economic equity gap.
It has been just over a week since I participated in and spoke at the 37th Annual National Black Supplier Conference – and I’m still riding high. The National Black Supplier Development Program (NBSDP) program is putting a dent in the economic equity gap for black-owned businesses, reporting new contracts of over $100M for its 2024 graduates. The conference presented a pitch competition led by corporate buyer Stellantis. This type of action connecting corporate buyers to talented supplier firms demonstrates that we can make progress towards closing the economic equity gap.
If you’re out here you can feel a rise in black business success, on a bounce back since the pandemic destroyed so many. The causes for the rise in number of new firms are varied, but include the access to technologies that reduce barriers to entry for startups, the effects of black employees affected by corporate layoffs, undervalued employees looking to moonlight, the underemployed forced to make their own, and, yes, the moonshot dreamers taking the chance to make their legacy in business, among others. While data from 2021 tells of a 14% year-over-year rise in the number of black-owned businesses I believe this data from 3 years back only captured the beginning of the wave.
However, the data around the GDP contribution of black-owned businesses should temper enthusiasm. Black-owned businesses contribute only 1% to the US GDP, a number far short of any measure of equity and one that hasn’t risen materially in the 15 years that I have been tracking census and other business data.
Growing black-owned GDP from 1% to 10% and more depends on growing more businesses that can scale up to address industry challenges. Businesses like the graduates of the NBSDP, who last week impressed the conference and corporate buyers with pitches and innovation across manufacturing, logistics, clean energy, Electric Vehicles and more. This group of established businesses, under the tutelage of Michigan State University’s Dr. Forrest Carter, is each using one or more levers like new business models, new industry entries, new technology and automation to find and take new market opportunities.
Businesses like:
Production Spring (pitch competition winner), a metal fastener and stamping automotive Tier 1 end-to-end manufacturer whose CEO Roderick Frazier is differentiating his company through both technological innovation and the ability to solve the unique problems of his customers;
Hess Advanced Solutions, whose Smart Valve brings huge cost and carbon emissions savings to businesses by removing air from water delivery;
VMXI (3rd place in pitch competition) who are pivoting from their longstanding environmental waste removal and recycling capabilities to create a new platform for Electric Vehicle Battery recycling and management solutions, capitalizing on the end-of-life needs EVB manufacturers are increasingly facing as EV ownership begins to boom.
Of the 9 businesses we heard from, each was not only seeking new profits but seeking to position their communities to profit as well. Through employment community members and returning citizens, through profit sharing with employees and through climate positive solutions these businesses modeled citizenship. VMXI CEO Vickie Lewis received a standing ovation at the end of her pitch for positioning her ability to hire Returning Citizens to the company.
I spoke on a panel with Green Business leader Natalie King, Ford Supplier Diversity leader Travis Spencer and Michigan Matters' Host Carol Cain, and we used the session to light even more fire under the 2024 graduates.
When I leave an event like this one I’m usually left encouraged about the fight ahead – even more so when receipts are provided, like the $100M in new corporate contracts announced by NBL President and program visionary Ken L. Harris, Ph.D. While the NBSDP still has room to grow – for example in gender equity (only 1 2024 graduate was led by a black woman founder), and in the embrace of AI solutions-oriented enterprises – the foundation is there to continue bringing the receipts of black business growth. Having fostered and led programs at Google responsible for similar economic impact, I know firsthand that the efforts of individual corporations and industry organizations of suppliers can make meaningful impact.
While there are many, many billions more to stack up before this gap is closed, programs like the NBSDP show us the way. Let’s get the attention of more corporate buyers and funders to invest in this and similar programs.
– Chris Genteel
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