Rendering: Energy Vault's energy storage project at a former Carbosulcis coal mining site in Italy.
Nothing screams of the traditional fossil fuel economy like a coal mine. Now, Westlake Village-based Energy Vault Holdings Inc. is helping to take a coal mine slated for shutdown in Sardinia off the Italian coast and lay the infrastructure to turn that mine into an energy storage system to facilitate the use of renewable power.
This is the latest of several developments at Energy Vault over the past couple of months, including the activation of a battery storage system in Texas, internal organizational moves and a quarterly earnings release that disappointed investors.
The energy storage project in the closing coal mine – announced Aug. 5 – is in partnership with Sardinian coal company Carbosulcis. It will combine centuries-old pumped-water energy storage technology – in which water is moved from a lower reservoir to an upper reservoir to store energy and back down to release it – with Energy Vault’s gravity-energy storage system that involves raising and lowering massive blocks to store and then release energy. This would allow the converted coal mine to store and release on call up to 100 megawatts of energy generated from renewable sources.
For Energy Vault, which has been deploying its gravity-based storage technology in China and other locales around the globe, this is the first time the technology is being applied in an underground setting.
“We believe that this exciting application of our energy storage solutions, including a new use for our gravity energy storage technology – deploying it underground – could hold vast potential for future applications,” said Marco Terruzin, Energy Vault’s chief commercial and product officer.
Construction on the energy storage project is set to begin next month, with the system scheduled for testing next year. The coal mine itself is slated for complete shutdown by the end of 2026.
Neither the cost of the combined energy storage system nor the financial details of Energy Vault’s arrangement with Carbosulcis were disclosed.
Just as work is getting under way on this project, work on another Energy Vault energy storage project has wrapped up.
On July 24, Energy Vault announced that a 100-megawatt battery energy unit it helped develop near Fort Stockton, Texas, has begun commercial operation. Austin, Texas-based energy storage company Jupiter Power, a subsidiary of New York-based BlackRock Asset Management, is the lead developer of the project, known as the St. Gall Battery Energy Storage System.
Energy Vault served as the engineering, procurement, construction and commissioning contractor and system integrator for the project and will deliver the second battery energy storage system for the overall project.
On the organizational front, Energy Vault announced July 25 that it has hired Wes Fuller as the new head of global sales, charged with expanding Energy Vault’s global footprint. The company also announced unspecified cuts that would save up to $8 million a year.
Finally, on Aug. 6, Energy Vault released quarterly earnings that were disappointing for investors.
The company reported a loss of $26.2 million in the second quarter, matching the loss for the same period a year earlier. The cuts announced last month were not in effect during the second quarter.
Just as concerning for investors, revenue fell sharply to $3.78 million for the second quarter from $39.6 million for the same period last year.
On Aug. 7, the first trading session after the earnings release, Energy Vault’s share price plunged 14% to 87 cents. The share price drifted down a bit further in subsequent days, closing on Aug. 13 at 84 cents.
Leader: Alen Malekian is the founder of Malekian & Associates. (Photo by Rich Schmitt)
Alen Malekian is the principal and founder of Glendale-based architecture firm Malekian & Associates, which has its hands deep in a number of local projects across many asset types – including single-family, multifamily, mixed-use and commercial.
As a longstanding resident of Glendale himself, Malekian considers himself well versed in its community demands and is attempting to aid in the city’s housing shortage by taking on more affordable housing projects.
Tell me about your background. How did you get started as an architect?
I moved to Glendale back in 1982, so I’ve been living here for over 42 years. I started taking high school classes, got to Glendale College, took architecture classes and went to Woodbury University. I’ve always loved architecture. I was more fascinated with the actual techniques and then, as I went through college, I learned more about the arts and everything that has to do with architecture. I just became more and more infatuated. It’s been quite a while that I’ve been doing this, but the interesting part is that every day I learn new things. I’m always learning, and I’m always interested in what’s around me.
What’s special to you about Glendale?
Glendale is a very interesting city in my opinion. It has a great vast of square footage – it extends from Burbank to almost Pasadena. You have a variety of climates, that’s one of the interesting parts of Glendale. Obviously, the culture and community are very important. We have a diverse multicultural community with different ethnicities coming together. It’s a melting pot for a lot of different people, from Armenians like myself, Hispanic, Filipinos and so on and so forth. Strategically, we are very well connected with all the surrounding cities. It’s a community that’s aware of what’s needed.
Working in this community is a privilege. Seeing the growth, understanding the neighborhood, being a part of the design review, being part of a lot of the ordinances and guidelines that have been developed throughout the city and understanding what people want really helps me to be more connected to the community and understand what they need. And because of my background and record, they listen. And we’re able to produce the work that we’re doing now and be successful in the community.
How has the city evolved over time?
The evolution of the design review process, to me, has been a big part of the growth of the community. Controlling and maintaining the sustainability of the community – the growth of the developments that are being proposed – has helped the community grow in a more cohesive way and basically be (seen) in a higher value than we would call our immediate neighbor Burbank.
The commercial growth and urbanization have been a big part of the growth. At one point, as I was part of the design review, I remember the Americana was being proposed and I was one of the proving bodies. We had a lot of people opposing the project. (Today it is) one of the most successful urban locations within Southern California. That has been one of the biggest parts of the growth of the downtown area. There are amazing restaurants, amazing updates and upgrades on all kinds of housing.
The growth has been steady because of the community development and the recent changes in the community development leadership. It’s a true reason we have a better city. I think the leadership has played a very big role in the development of the community.
Do you do projects in other parts of Los Angeles as well?
I do. We have approximately 80 to 100 projects running on average. About 30 of them are within the city of Glendale. Everything else is outside. The majority of them are in the city of Los Angeles. We have projects in Burbank, Pasadena, Arcadia (and)Santa Fe Springs. We have a lot of variety of different types of projects.
What’s it like to work on both single-family homes and commercial projects at the same time?
A project is a project to me. A single-family home allows me to be a little more creative and be a little bit more personal in a sense of the user-endwhereas on commercial projects, we do get creative, but we are essentially controlled by a lot of conditions and requirements that we need to meet (such as accessibility and parking). It’s two different hats that I wear, but we constantly go back and forth between commercial and residential. Personally, I like residential, but I enjoy affordable housing.
Tell me about 3501 Ocean View. What was the transformation process like?
It was a dry cleaners. The client of mine had purchased the property and, with his brother-in-law, they decided they were going to demolish the building and start reconstructing the steel frame with a metal frame. They ended up removing more than 50% of the roof and the building itself. By doing that in the city of Glendale, you lose the nonconforming conditions of the building. That means everything that is grandfathered in within the building, you lose that, and the city determines and looks at these projects – if they’re removed more than 50% – as a brand-new project. And because of being a brand-new project, they have to go through the design review process.
Their attorney was a friend of ours. They introduced us and so we met and discussed their options and what he wanted to do with the building. We actually came up with the design that he was happy with. It was an incubator for startup tech companies. I took a lot of inspiration from the building across the street, which is a mid-century building. I wanted to bring in the existing building, utilize some of the steel that they had installed prior to the demolition and be able to come up with a design that I (was excited about).
Offices: 3501 Ocean View, a Malekian & Associates project in Glendale. (Photo by Rich Schmitt)
What’s another project you’re working on that you’re particularly excited about?
We just recently got approval on a project – 424 Milford – that’s an affordable housing project. And on that particular project, there are three lots and those three lots have three structures totaling five bedrooms. The proposal was to demolish the (lots) and reconstruct an affordable housing (complex) with subterranean parking. By right, we were allowed to have 24 units with the inclusionary of dedicating four affordable. But because we wanted to have additional units, we were able to get approval through the housing authority for 42 units by adding four more affordable housing (units). We totaled eight affordable (units) with 42 units (total).
We utilized some of our past experiences of developing other affordable housing (projects) to reduce the cost. Stacking the same type of units on top. The main emphasis is on the front of the building. The major cost is the facade renovation. The surroundings are very uniform, nice, clean design, but at the same time it’s cost effective. (We are trying to) keep the cost as low as possible. We didn’t max out. We didn’t go five-story. We went four-story to keep it as a type five construction.
What’s your favorite thing about your job?
One of my favorite parts of my job is when I walk into my office, when I’m sitting at my desk, that random phone call that I get that it’s a potential new project, a potential new client calling in, a new exciting chapter is going to open. It’s fun. Architecture has so many different parts to it. Designing the project is probably 10% of the bigger picture. Dealing with clients, dealing with the city, staff, rules, regulations, codes, making decisions, dealing with contractors (are other responsibilities of being an architect). You are always busy. I’m proud of what we do. It’s personal. This is an urban-scale art form as I see it. I think for any architect their challenge is to be able to do something that benefits the community, that benefits them, benefits the neighborhood and (they can) be proud (of). And I am. I’m proud of my staff, I’m proud of my accomplishments and where we are. I love my job.
The Los Angeles Business Journal formally named Hannah Welk as its editor-in-chief last week, making her the 45-year-old publication’s first woman in the role.
The job itself isn’t new for her or the department – she’s spent the past six months as interim editor, following the exit of Charlie Crumpley. Welk first joined the Business Journal in 2018 as a real estate reporter and said she was “honored” to take on the top role.
“Serving as the interim editor for the last six months has been an incredible experience and I’m excited to continue to build upon the publication’s legacy,” she added.
Welk, a 2014 graduate of USC, hit the ground running when she took on interim duties in late January and oversaw the Business Journal’s shift of its sister publication, the biweekly San Fernando Valley Business Journal, into the bimonthly Inside The Valley magazine.
“Working at a magazine was always a dream of mine and I was thrilled to be the editor during the launch of Inside The Valley,” she said. “I think Inside The Valley has a bright future and I am looking forward to continuing to lead the magazine.”
After joining the Sawtelle-based publication as a staff reporter, Welk was promoted to managing editor in 2022 and often worked closely with Crumpley – whose role was transitory as the two publications combined operations – in planning each week’s issue.
Josh Schimmels, the Business Journal’s publisher and chief executive, called Welk an “amazing asset” to the publication, hailing her passion for business journalism and “drive to set the bar higher.”
“Through our weekly print publication, newly launched magazine Inside The Valley, our robust digital offerings, in-person events, and our much-anticipated podcast series (episodes releasing in September), Hannah’s forward-looking approach will help us to continue to grow our brand in new ways, all while producing award-winning content in the weekly editions,” Schimmels said.
“I want to thank Josh for his leadership and for the opportunity to lead the publication,” Welk added. “I’d also like to recognize the reporters, photographers, editors and the production team who make the publication what it is. I’m incredibly proud of the product we create weekly.”
This marks the second major Los Angeles publication to have its first woman take over the editorial department this year. The El Segundo-based Los Angeles Times named Terry Tang as executive editor in April, following the abrupt departure of Kevin Merida amid significant layoffs.
Prior to joining the Business Journal, Welk was an associate editor for Internet Brands and wrote in the business section of the Orange County Register. She has also freelanced for Crain’s and The Real Deal.
Welk double-majored at USC in print and digital journalism, as well as East Asian languages and cultures. Her coursework saw her study for a semester at Peking University in China. A Chicago native, she lives in Westchester with her husband and dog. She is a Cubs fan and enjoys baking in her free time.
The Farmers Insurance headquarters building in Woodland Hills. (Photo by Ringo Chiu)
The top property and casualty insurers in California wrote about $3.2 billion more in premiums in the state last year than they did in 2022.
It is a trend that will likely continue to rise in the immediate future, frustrating property owners who have to pay them and providers who have to shell out more and more for natural disaster damages in the state. It’s a situation that has provoked insurance providers to scale back their business here or leave the state entirely.
Danone Simpson, founder and chief executive of Calabasas-based insurance brokerage Montage Insurance Solutions, said it is partially the casualty of California being historically underinsured in comparison to the rest of the nation.
“We don’t have the hurricanes and other risks in other states,” she explained. “Now with the fires and floods that have been happening, we have been underinsured and that’s why they’re increasing premiums or non-renewing their customers.”
What the numbers show
The state’s 24 largest insurance carriers wrote more than $79.3 billion in California premiums last year, according to the Business Journal’s research. This represents a 4.16% increase from premiums written in 2022.
The biggest year-over-year increase came from the largest insurer here by premium, Illinois giant State Farm. The agency wrote nearly $1 billion more in premiums last year.
Locally, two Los Angeles-based insurers were in the Top 10 for the state in terms of premiums written. Farmers Insurance Group, located in Woodland Hills, wrote nearly $7.55 billion in premiums last year – an increase of a little more than $500 million. And Mid-Wilshire-based Mercury General Corp. wrote more than $3.59 billion in premiums last year, up by about $348 million. (See page 16 for the Business Journal’s annual List of Property/Casualty Insurers ranked by 2023 premiums written.)
Farmers posting a premium increase is noteworthy, given that the company announced last year it would stop adding new customers in California. It would seem to indicate that it either retained a significant amount of its existing customers or simply charged enough of a premium increase to more than offset any policy attrition.
The marked increase in the number and severity of natural disasters in California – the devastating wildfires and rain-induced flooding and mudslides – would be on its own a challenge for insurers. But it’s a situation compounded by the fact that construction materials and labor to build structures remains painfully high right now.
“What’s happened is underwriters look at historical statistics and they’re seeing that there’s not only more fires, but the cost of replacing homes in California is huge,” Simpson said. “That’s what has created this need in California to increase the limits of properties located near fire zones.”
And property values in California, driven largely by an enormous supply and demand imbalance, will stay among the highest in the nation for years to come.
Sean Andrade, managing partner of Andrade Gonzalez LLP
“Some of that is the climate changes and the increased risk for fires, but the pandemic and all kinds of logistical concerns with shipping have really driven up replacement costs as well,” insurance attorney Sean Andrade, managing partner of Arts District litigation boutique Andrade Gonzalez LLP, previously told the Business Journal. “It costs more to get things done in general, so they’re seeing a lot of increases on their costs side with claims, and also just an increase in the number of claims.”
Adjustments will continue
As Farmers last year scaled back its policy strategy, it also had to find other ways of reeling in costs.
The company announced nearly a year ago an 11% employee reduction, which included 369 workers who reported to the Woodland Hills headquarters directly or remotely. Farmers this month added 84 more layoffseffective Oct. 7,including 17 California residents, who report to Woodland Hills remotely. Other smaller carriers and subsidiaries in the county also engaged in layoffs last year.
At the same time, the narrative has shifted a bit in terms of what companies are offering in the state.
Farmers this month resumed the writing of new commercial multi-peril policies in a variety of business operations – including auto service and repair, habitational, manufacturing, real estate and wholesale distribution – in California. The provider also resumed writing new auto insurance policies in California starting in July.
Eric Coleman, who in April joined Farmers as its president of business insurance after previously working in senior leadership for Nationwide Mutual Insurance Co., attributed this shift to productive talks with the California Department of Insurance that ultimately allowed the company to raise its rates commensurate with exposure levels and material cost.
“As a leading insurer of small businesses, we are excited to be re-opening these key lines of our commercial insurance offerings to new customers in California and help provide business owners with more choices when shopping for coverage options,” Coleman said in a statement. “Farmers has operated in California for nearly a century, and while challenges remain, we are encouraged by the positive changes taking place in the state’s commercial insurance marketplace.
“We have been consistent in our belief,” he added, “that a fundamental condition for offering coverage is that rates need to reflect the risk exposure we are insuring.”
Simpson said she can relate to the pains of rate growth. She recently had to re-up property insurance for Montage and her own home, each of which saw 30% increases from last year. To add insult to injury, maximum payouts are also dropping.
“If people had $10 million (max payouts) for years, they’re lowering it to $1 million,” she said. “If there’s been threats of a claim, they get very nervous about that.”
Working to find solutions
As a brokerage owner, Simpson hits the market to find policies for her customers. She takes a hands-on approach with Montage – brokers scour providers for quotes, provide all of them to clients and frequently check in on those clients to make sure their assets are accurately reflected.
That last detail, Simpson said, is important, because many brokers are inclined to simply renew a contract with the same numbers and without shopping their customers around. Because that practice won’t account for changes in property value or specific assets, that can have the effect of underinsuring. If that happens every time, it compounds quickly.
Danone Simpson, founder and chief executive of Montage Insurance Solutions, in Calabasas. (Photo by David Sprague)
“We market every carrier, every year. We don’t just roll over business like a lot of brokers do. We don’t just renew our clients as-is. It’s unbelievable how many companies out there renew as-is even on their homeowners,” Simpson said. “Make sure you have policy reviews with your brokers annually, make sure they’re quoting all carriers annually and make sure they’re bringing you the best policies and programs. Don’t just renew as-is.”
That diligence has helped Montage grow its clientele. Simpson recalled one new customer, whose previous carrier deemed him a non-renew, coming to Montage for insurance. As it happened, the same previous carrier offered the man a policy – it turned out, that carrier had erroneously lumped the man’s property in with a larger group deemed to be too risky.
“We obtained that business because we helped him stay with the carrier,” Simpson quipped.
Prices aren’t doomed to spike forever, experts contend. Andrade, in prior interviews, said California was ultimately too big of a market for the insurance industry to meaningfully ignore. New providers entering the market will likely ease pricing, he added.
Indeed, after exiting the state entirely, Allstate Insurance began offering auto insurance – at a 30% markup – in California again. Restaurant insurer Rainbow Insurance also entered California this year.
Simpson added that the industry will have to keep lobbying the state insurance department and commissioner as well. While that department has stubbornly kept rates lower for customers, eventually it will have to contend with the decreasing ability of carriers to offer policies here, she said.
“If they can get to their proper amount insured, they will level off (in price increases), I’m sure,” Simpson added. “We’ve been hearing threats of the market hardening for a while now. Renewals have been flat for years, and now we’re at the point where we’ve had too many hurricanes and other disasters. It’s not only California. It’s nationwide.”
Located in the southeastern San Fernando Valley, Glendale is the fourth most populous city in Los Angeles County with just under 200,000 residents. The area is a popular tech hub but is also seeing lots of development across all asset types, including a new Armenian American Museum under construction and a proposed reimagined Verdugo Wash. Multifamily in particular has been a hot asset class for Glendale. The city currently has 596 units under construction, according to Colliers, many of which are affordable.
Erewhon
Location: 520 N. Glendale Ave.
Description: Erewhon is transforming an existing 24,000-square-foot hardware store the upscale grocer purchased for $12.4 million earlier this year into a multi-tenant building. It will occupy approximately 18,000 square feet and leave room for at least one other complimentary tenant.
Developer: Erewhon
Architect: RDC
Completion Date: Q4 2025
Armenian American Museum and Cultural Center of California
Location: 151 E. Colorado St.
Description: The Armenian American Museum is currently under construction at Central Park. The museum will share the Armenian American experience. It is expected to be unveiled in the first quarter of 2026.
Developer: Armenian American Museum and Cultural Center of California
Architect: Alajajian Marcoosi Architects
Completion Date: Q1 2026
515 Pioneer
Location: 515 Pioneer Drive
Description: 515 Pioneer is a five-building affordable housing complex that sits on a 2.8-acre site northwest of downtown Glendale. The 340-unit complex will be reserved for seniors aged 62 and up and small families, earning between 30% and 80% of the area’s median income. It is one of the largest affordable housing projects in California.
Developers: LINC Housing and National CORE
Architect: KFA Architecture
Completion Date: Q4 2025
Citrus Crossing
Location: 900 E. Broadway
Description: Citrus Crossing is a five-story project featuring 127 units of 100% affordable housing for seniors ages 62 and up. It will have a mix of studios, one-bedroom units and a two-bedroom manager’s unit above two levels of subterranean parking with 92 stalls. The $60 million project is nearly complete, with its opening scheduled for Sept. 17.
Developer: Meta Housing
Architect: AC Martin
Completion Date: Q3 2024
Harrower Village
Location: 920 E. Broadway
Description: Harrower Village is a 40-unit, 100% affordable senior housing project. The project is an adaptive reuse and preservation of the historic Harrower Laboratory complex, a medical complex most recently occupied by Tobinworld, which vacated the site in late 2019.
Developer: Adobe Housing
Architects: Omgivning, KFA Architecture and AC Martin
Completion Date: Q3 2024
Hotel Indigo
Location: 523 N Central Ave.
Description: Hotel Indigo is the only hotel currently under construction in Glendale. The seven-story building will encompass 147 guest rooms, a pool deck, a fitness room, meeting rooms as well as a 137-car garage. The project was approved in 2020 by the Glendale City Council. It will replace a shuttered Burger King.
As labor shortages continue to run rampant through the manufacturing industry, manufacturers are increasingly looking towards artificial intelligence to continue to meet demand. Crucially, manufacturing companies in 2024 are looking towards AI not just as a tool to streamline processes, but as a spark for innovation that could redefine the operations of a supply chain.
“You know, a lot of folks initially used AI for just analysis, supply chain optimization, or enterprise resource planning,” said Edward Mehr, chief executive of Chatsworth-based technology manufacturer Machina Labs.
Mehr’s firm is one of many Los Angeles-based companies in manufacturing that is looking toward a new way to wield AI – Mehr refers to it as ‘the third generation.’
“They’re actually taking over the process,” Mehr said of Machina Labs’ technology. “They’re actually informing how to do a process that maybe previously was either not possible, or you had to create very fixed custom tooling for it to enable that which made it very inflexible, meaning that you had to build certain type of tooling and equipment for every part that you’re trying to manufacture.”
Per GrayMatter Robotics, U.S. manufacturing is a $2.5 trillion industry with 3.8 million unfilled jobs. Solutions are needed for processes that often require highly skilled labor in conditions not without hazards, and the flexibility, adaptability and speed offered by AI are being applied as short-term solutions as much as they are being looked at as ways to overcome manufacturing hurdles that were unavoidable in a pre-AI world.
“The benefit of the flexibility (provided by AI) is that you get your parts faster,” Mehr explained. “You don’t have to tool up a factory before you can get your batch of parts. So it reduces lead time. But more importantly, it allows you to create factories that last longer.”
Adaptability has not been a strong suit of factories, especially those in technology, aerospace, or other types of metalwork, which Mehr attributed to the customized nature of manufacturing in those industries. Oftentimes, a factory is created with the specific part needing to be manufactured in mind, and all aspects of the factory from architecture to operations are designed with that one specific part in mind. However, if a part were to be changed, upgraded, or otherwise rendered obsolete in its current form, the factory specifically designed to carry out that task would be rendered obsolete as well, along with its resources.
Artificial intelligence offers the potential of a new level of factory adaptability, and what is being tried by many companies in Southern California could lead to a new standard of efficiency in manufacturing that has the potential to permanently redefine the industry nationwide.
Mehr and Machina Labs’ AI-powered robots are just one of many new ideas being tested in the manufacturing space.
Being in L.A. “gives you an advantage as an advanced manufacturing company using new technology,” explained Mehr. “Being in this ecosystem where Boeing and Lockheed and Northrop Grumman and SpaceX are your neighbors make it much easier to deploy new technologies versus other regions.”
• • •
Advanced Bionics is the only manufacturer of cochlear implants in the U.S., according to the company. AB was founded in Valencia and has brought itstechnology to 130 countries worldwide since its 1993 inception. It is part of the larger Sonova organization, which specializes in hearing care solutions and is comprised of Advanced Bionics, Phonak, Unitron, Hansaton, AudioNova and Sennheiser.
It is through its partnership with Phonak that Advanced Bionics uses artificial intelligence.
Acoustics: Valencia-based Advanced Bionics makes the only cochlear implants sold in the U.S. market.
Advanced Bionics’ latest cochlear implant Marvel CI operates on a universal Bluetooth connection and is equipped with Phonak’s AI-powered AutoSense OS 3.0, which reduces background noise and improves hearing focus.
“Since its introduction in 2020, Marvel CI has redefined hearing performance with cochlear implants,” Victoria E.Carr-Brendel, then-president of Advanced Bionics, said in a statement in December. “Marvel CI’s universal Bluetooth connectivity, dedicated sound processor for children, and integrated compatibility with Phonak hearing devices are still features that are unique and unmatched on the market.”
Advanced Bionics Chief Executive Alistar Simpson assumed his new position, as well as the group vice president for Cochlear Implants on the Sonova Management Board, after Carr-Brendel stepped down last month. Carr-Brendel had served in both positions for five years. With Simpson at the helm, AB is looking to leverage its breakthrough Marvel CI tech into further market expansion.
“AB has a strong foundation, and I look forward to working with the talented team to build on this success and drive further growth and innovation,” Simpson said at the time of his appointment as CEO.
• • •
Chatsworth-based Machina Labs specializes in developing new manufacturing technology. Founded in 2019, the company’s total funding crested the $45 million mark following a $32 million series B funding round last year. For Machina Labs, finding ways to utilize AI to streamline technological manufacturing is the name of the game.
Evolving: Machina Labs in Chatsworth aims to make it easier for factories to recalibrate as their products change.
“The core problem we’re solving is making factories that can easily change when the hardware or the product that you’re trying to manufacture is changing,” Machina Labs Chief Executive Edward Mehr said. “Most factories are custom built for the parts and the material and the design that they’re trying to manufacture. And the moment you want to change the design, or you want to change the material, you have to invest in a whole set of new tooling and new machinery that is specific for that product.”
Machina Labs’ solution comes in the form of what Mehr refers to as third-generation AI – the utilization of AI to innovate in the manufacturing space instead of simply streamlining or optimizing previously utilized systems. Flexibility in the highly specialized craft of metalwork is paramount for a company that can go from making aerospace parts to automobile parts in the same day, and Machina Labs’ Robo Craftsman is the core technology used to address this facet of technological manufacturing.
“It’s a robotic system, that pretty much works like how a craftsman works, right? It can pick up different tools, apply differently to the material, and replicate different types of manufacturing processes,” Mehr explained.
In the long-term, Machina Labs aims to use AI to develop manufacturing systems that can perform multiple highly specialized crafts to maximize factory longevity.
• • •
True to its name, GrayMatter Robotics mobilizes AI-powered robotics to solve manufacturing challenges. The Gardena-based company has had an eventful 2024 thus far – it won the Automate Innovation Award for its SCAN&GRIND system in May, then raised $45 million one month later. The $45 million raised in its series B funding round accounts for over 60% of GrayMatter Robotics’ total funding since its founding four years ago.
Solutions: GrayMatter produces robotic units that can take on sanding, spraying and other duties.
GrayMatter Robotics offers a variety of robotic solutions – competent in blasting, coating, trimming, spraying and more – to address the labor shortages currently plaguing the manufacturing industry. The main focus of the company’s approach is automating manufacturing and industrial operations to assist understaffed workforces in a consistent, efficient manner. GrayMatter Robotics’ solutions aim not to replace workers but to streamline complex tasks on the manufacturing floor while minimizing variables.
“We founded GrayMatter to enhance productivity while prioritizing workforce well-being,” Ariyan Kabir, the company’s co-founder and chief executive, said in a statement. “With our physics-based AI-powered systems, we are fulfilling our mission while unlocking new levels of efficiency and productivity.”
• • •
The origins of Lisi date all the way back to Paris circa 1777, but Lisi Aerospace – initially dubbed Blanc Aero Industries – was founded in 1977 when the group started designing and manufacturing fasteners and assembly solutions for the aerospace industry.
Today, Lisi Aerospace operates under the Lisi banner out of Torrance. The company designs and produces a very wide range of assembly systems, hydraulic fittings and metal structural components for the aerospace sector.
Adjustments: Lisi uses an AI software that allows its machines to self-correct.
In May, Lisi announced the launch of a new AI initiative with Watch-Out, a high-precision machining partner of the group for nearly two decades.
“The Watch-Out solution, a technological feat of Machining 4.0, combines all the conventional machining cycles in a perpetual loop with a specific Artificial Intelligence. It is a virtually self-sufficient production machine that constantly self-corrects according to data generated and captured in real time on parts and tools,” Emmanuel Nieldez, Lisi’s chief executive, said in a statement.
“Much more than just an improvement on the performance offered by previous-generation machine tools, the Watch-Out solution represents a dramatic change in an industrial paradigm aimed at eliminating the element of randomness in the treatment of chronic failures in the production chain,” he added.
Lisi also has branches in the automotive and medical industries, but its main source of business continues to be the aerospace industry. Its most recent initiative is yet another example of a high-level manufacturer with innovation at the forefront of its approach to utilizing artificial intelligence.
• • •
Metal Toad is a business services company and Amazon Web Services specialist that operates primarily as a consulting partner to small- and mid-size businesses, as well as larger-scale manufacturers. Metal Toad was founded by Chief Executive Joaquin Lippincott in Portland, Oregon, in 2003. Lippincott relocated to Southern California in 2017 and opened its headquarters in Century City. Its Portland office is still open alongside an office in São Paulo that opened in 2020.
The majority of Metal Toad’s partners are small and midsize businesses, but the company has also worked with major manufacturers including Sony and Daimler.
Clients: Metal Toad works with small and midsize businesses to provide security software.
Metal Toad’s also offers a myriad of services; the most recent addition to what the company offers is Securitoad.
Launched in June 2024, Securitoad is a security solution with IP blockers powered by AI algorithms.
“By combining an always-on, always-learning AI algorithm with simplified controls, security is handled in real-time, faster and at a scale that is simply beyond human capabilities,” Lippincott told AWS.
With Securitoad, Metal Toad has harnessed the power of AI to establish a simple, low-maintenance function to offer yet another level of cybersecurity to its partners. Lippincott’s hope is that Securitoad will allow technologists to put more focus on building for the future instead of daily maintenance.
“For Securitoad, we are targeting IT teams who would rather do something other than battling hackers day-in and day-out. We believe technologists want to do more than fight to keep their applications safe,” said Lippincott. “They should be empowered to innovate and design new solutions, not constantly fight fires. This might include overworked and understaffed teams, or teams led by visionary technology leaders looking to do more than fight their way to a stalemate.”
Production: The FotoKem building on Alameda Avenue in Burbank.
FotoKem, the venerable post-production company in Burbank, will receive an award from the Hollywood Professional Association at its annual awards ceremony in November.
The 61-year-old business will receive the Charles S. Swartz Award at the HPA Awards gala taking place on Nov. 7 at the Wolfe Theater at the Television Academy in North Hollywood.
The Swartz Award is given at the discretion of the HPA Awards Committee to recognize a company or individual’s lasting contributions to the media content ecosystem. The award was last given in 2018 when Victoria Alonso, a producer and now former executive vice president, production for Marvel Studios, received it.
FotoKem was founded in 1963 by Gerald Brodersen as an independent black-and-white film lab, located on Cahuenga Boulevard, only a couple of blocks from Universal and Warner Bros. studios.
It supports filmmakers, studios, cinematographers and artists across diverse film and media landscapes.
Among other projects, the company has worked on productions like “Once Upon A Time…in Hollywood,” “Better Call Saul” and the third season of “The Mandalorian” for Disney+.
In addition to FotoKem’s main campus in Burbank on Alameda Avenue, their other Los Angeles area facilities include an editorial facility in Hollywood; Keep Me Posted, an episodic TV post-production house in Burbank; LA Studios, a voiceover and ADR facility in Hollywood; and Margarita Mix sound and audio in Hollywood and Santa Monica.
Bill Brodersen, chief executive of the company, said he was “deeply honored” for the company to be recognized with the Swartz Award and thanked the HPA.
“From the time my father started FotoKem until today, we have remained dedicated to serving the filmmakers who entrust us with their work,” Brodersen said in a statement. “This award shines a light on our teams who work so diligently on behalf of our clients, and the community of artists and technologists who tell stories and share their vision.”
HPA President Seth Hallen said that the HPA Awards Committee and the board of directors were unanimous in their desire to honor FotoKem with the award.
They have played a role in keeping film alive as a tool for filmmakers and receiving the Swartz Award is “a thanks to its team that includes some of the most talented, creative, technical and operational individuals in the (entertainment) industry,” he added.
“The impact of their unwavering support of film along with their non-stop innovation in many aspects of the post-production processes and the talent and skill with which they serve their clients, eloquently illustrate their impact,” Hallen said in a statement. “From dailies to the meticulous restoration of classic films, and outstanding work for picture and sound to mind-blowing 70mm workflows, FotoKem brings an unparalleled level of talent.”
The Swartz Award is named in honor of the late Charles S. Swartz, who led the Entertainment Technology Center at the University of Southern California from 2002 until 2006 and helped to build it into the industry’s premiere test bed for new digital cinema technologies. Swartz died in 2007 and the award was established to honor his legacy and contributions to our industry. In addition to a long and successful career as producer, educator and consultant, Swartz served on the board of directors of the HPA.
Entertainment: Disney California Adventure Park in Anaheim.
Workers at Disneyland Resort, owned by The Walt Disney Co. in Burbank, have approved a three-year contract with the Anaheim theme park.
The 14,000 employees of Disneyland and other parts of the park, known as cast members, voted on the contract July 29.
The contract includes the division’s largest-ever wage increases, with most cast members receiving $6.10 per hour over the life of the contract and a new minimum wage base hourly rate of $24 from the previous rate of $19.90.
The contract also includes longevity increases of 50 cents per hour for cast members with over 10 years of service and a $2 per hour increase for workers with 20 years or more of service as well as attendance policy and sick leave improvements that give employees more opportunities to attend to personal issues without fearing discipline.
“We are pleased that our cast members approved the new agreements, which, along with all we offer as part of our employment experience, demonstrate how much we value them and our profound commitment to their overall well-being,” Disneyland Resort spokesperson Jessica Good said in a statement.
Disney offers its cast members an Employee Assistance program, childcare, legal and tax support, commuter assistance, tuition reimbursement and the opportunity to engage with local communities through the VoluntEARS program.
The workers, who are part of the Master Services Council and include custodians, ride operators, candy makers, merchandise clerks and more at Disneyland, Disney California Adventure, Downtown Disney and the Disney hotels in Anaheim, had voted on July 19 to authorize their bargaining unit, Disney Workers Rising, to call for a strike if a contract agreement was not reached. The contracts were reached on July 24, and the strike call became a moot point.
The Disneyland contract expired in June, while the contracts with workers at California Adventure and Downtown Disney were set to lapse on Sept. 30.
“By ratifying these contracts, Disney cast members have secured historic raises and policies and protections that reflect their role as magic makers in the Disney parks,” the Disney Workers Rising Bargaining Committee said in a posting at the United Food and Commercial Workers Union Local 324 website. “For months hard-working cast members have stood together at the bargaining table and in the parks to ensure Disney recognized what they bring to the theme park experience, and these contracts are a concrete and direct result of this tireless work.”
Cast members are represented by the UFCW Local 324, Bakery, Confectionery, Tobacco Workers and Grain Millers Local 83, SEIU-United Service Workers West and Teamsters Local 495.
“Together by wearing buttons, attending rallies and telling their stories to the public, cast members fought for a more promising future for themselves, their fellow cast members, and their families,” the bargaining committee’s statement continued. “These contracts are historic for Disney cast members and we’re pleased (their) lives will improve as a result.”
Hello Cake, a Calabasas-based sexual health company, has launched a prescription medication to treat female sexual dysfunction.
Hello Cake began in 2018 as a direct-to-consumer brand that developed a cult following for creating situation-specific lubricants and vibrators. The company raised $16 million and quickly made its way to retailers like CVS. Now, it’s turning its head to prescription medication.
It’s not alone. The wellness industry, dominated by consumer packaged goods and over-the-counter medications, is slowly inching its way into pharmaceuticals. After 60 years, weight loss program WeightWatchers announced in 2023 that it would acquire Weekend Health (then called Sequence), a platform that prescribes drugs meant to treat diabetes and obesity. Noom, another weight management platform, rolled out Noom Med to offer prescription drugs as well.
Libido Lift Rx, Hello Cake’s oral medication, aims to tackle symptoms of female sexual dysfunction. To receive a prescription, patients see a doctor through Hello Cake, and the company provides six doses for $54.
There isn’t a women-focused sexual dysfunction drug on the market that comes close to the revenue success of Viagra. Pfizer’s iconic little blue diamond pill was considered a blockbuster drug when it debuted in 1998, and even when its patent expired and gave way to generics in 2017, Pfizer was able to maintain control of the erectile dysfunction market between 2018 and 2019.
After rejecting it twice, the Food and Drug Administration finally approved flibanserin in 2015, which was the first drug touted as “female Viagra.”
The approval process for the drug was complicated and contentious, in part because the medication aimed to target the medically nebulous issue of female sexual desire, as opposed to simply promoting the mechanical act of blood flow to a body part.
“When you think about the amount of time, attention, and money being poured into treating erectile dysfunction for men while FSD has largely gone overlooked, it’s not right,” Mitchell Orkis, Hello Cake’s cofounder, said in a statement.
Libido Lift Rx is not available in a handful of states including California due to restrictions on shipping compounded drugs into those areas.
Bosses: Mojave Audio’s Dusty Wakeman and Colin Liebich. (Photo by Rich Schmitt)
Tucked away in a cinder block warehouse complex in a Burbank neighborhood, Mojave Audio Inc. produces some of the music industry’s hottest boutique microphones.
Designed by audio mastermind David Royer, the company’s condenser and dynamic mics are the tools of choice for many recording and performing artists. A pair of longtime producers and musicians – Dusty Wakeman and Colin Liebich – run the business and handle marketing and sales to put the mics in those artists’ hands and stands.
“We both have a background, which I think is a really key point to our success – that we actually make records and actually use this stuff,” Wakeman, the company’s president, said. “We’re not just MBAs selling numbers. When we go out and do marketing, we’re talking about recordings and actual use. We’ve lived it.”
And during the pandemic, the company’s sales continued to climb as people switched to remote work options and as personal recording for music and podcasting only grew. As we emerged from the pandemic, the surge in artist tours and music festivals have also brought good fortune to Mojave.
As the company approaches its second decade, its leaders aim to continue its year-over-year growth pattern and further advance its technology. Reminiscent of the famed singer-songwriter duos in music, the pair of Wakeman and Liebich looks to be a significant factor in that success. The company’s sales have grown about 50% since they joined forces in 2019.
“I think that’s because of our alliances and how we handle things. We’re both very open to listening to how to do it better,” Liebich said.
From bikes to Burbank
Mojave’s origins are a bit like something out of a movie.
Royer had developed an affinity for music and sound quality as a boy and, as an adult, began to teach himself the ins and outs of microphone engineering. He would ultimately pair that knowledge with four years of experience in the U.S. Navy as a sonar technician to begin his life’s work.
In the earliest days, Royer was known for working out of the garage at a cabin near Joshua Tree – in the Mojave Desert – and delivering a mic he’d just tinkered with to the Rancho De La Luna studio there, often inside of a sock and on a cheap dirt bike. Known for his work in the niche ribbon microphones, Royer eventually formed Royer Labs.
Wakeman, who was then a record producer and owned the former MadDog Studios in Burbank, had heard these stories of the desert microphone guy for years. He also became a customer and endorser of Royer Labs – later learning that these were the same person.
“He’s a desert rat and I’m a desert rat – I had a guest ranch out there for like 18 years – and heard about this guy that would show up to a session with a mic in a sock on like a Honda 175 or something in cut offs, just sun-baked,” Wakeman recalled. “And then I got to be an endorser for Royer ribbons, and finally made the connections – ‘Oh, you’re that guy!’”
Microphone: A Mojave Audio product. (Photo by Rich Schmitt)
While Royer Labs had made a name for itself with ribbon mics – so-called for the fragile ribbon inside of the device, and often preferred for guitar or horns recording – Royer himself was dabbling into other microphones – condenser mics, for all-purpose recording, and dynamic mics made for live performances. For this, he formed Mojave Audio in 2005, and that’s when Wakeman entered the picture.
“I was a studio owner, producer and engineer for like 28 years. In 2000, I had gotten to know these people, and was kind of burned out on making records after all those years. And my second kid came along and I was kind of looking for a lifestyle change,” Wakeman said.
“And they had a new product, Mojave mics, and they were looking for somebody to run the startup company. I’ve been doing it ever since,” he added.
Building a strong brand
Liebich – a musician who owns a recording studio, Plastic Dog Recording, in Mar Vista – joined Mojave in 2019 after buying out one of its then-partners.
“The brand has quite nice recognition and a very good name for quality,” Liebich said. “I was a customer of the brand before I came in as a partner.”
The pair characterized 2019 as a fork in the road for Mojave, and they evidently picked the correct path. Since Liebich joined in 2019, they said Mojave has annually had its best year yet in terms of sales. This year, they said they’re on track for 20-25% sales growth.
In this time, Mojave was able to branch out into its own space after sharing a location with Royer Labs for most its existence.
The growth continued even through Covid-19, as people worked in home offices and held video meetings or people in need of a hobby took up an instrument.
Sound engineers like Daniel Lanois (who works with U2 and Peter Gabriel) and Dave Catching (who works with Foo Fighters and Queens of the Stone Age), as well as performers Selena Gomez, Miley Cyrus and Jaime Cullum use Mojave mics. Top sellers include the MA-201 model, which retails for $849, and the $1,549 MA-300.
The most basic half of the microphones are assembled in China, while technicians assemble and solder the key components here in Burbank.
Storage: Mojave Audio is based in Burbank. (Photo by Rich Schmitt)
Ever the perfectionist, Royer himself tests each and every mic before it’s packaged for sale – a test that includes leaving them powered for 24 hours. Royer also leaves a handwritten signature on a card in each product box.
And for any technical issues, Mojave will repair all devices for its customers.
“Part of being engineers in the studio is we know the pain of somebody wanting to use their favorite microphone and have it not working,” Wakeman said. “So we’re really big on that and our customer service –anything to get the customer back up as soon as possible – because we’ve been there.”
Watching the landscape change
As they’ve embraced the hardware side of the business, Wakeman and Liebich have had front-row seats to huge shifts in the recording industry.
For one, the days of big recording studios are waning, most recently punctuated by the announced closure of Hollywood’s legendary Record Plant last month. Sunset Sound, another Hollywood mainstay, has also signaled this year it was struggling to stay in business.
“After the year 2000, budgets started going down. Producers, what they used to get paid as a producer advance became the whole budget,” Wakeman explained. “So instead of having a $50,000 producer pitch, you’d have a $50,000 budget by going back to record whatever you got left over.”
Quality mid-level audio equipment like Mojave’s products is as accessible as ever. However, that accessibility has created a tradeoff for the traditional studios of music industry, the pair contended.
“It’s put most of them out of business,” Liebich said.
Wakeman – who has worked with such artists as Dwight Yoakam, Lucinda Williams, Roy Orbison at his former studio – hung up the hat at MadDog when he started at Mojave.
Liebich has continued running his own studio – as have many other smaller producers and audio engineers who often operated in nondescript locations.
The partnership of Colin Liebich and Dusty Wakeman has resulted in Mojave Audio growing its sales by 50% since 2019.
“The boutique studios are doing way better than the big studios, because it’s based on the producer,” Liebich said. “It just depends on what you’re working on. We can pay the rent based on who we bring in, and the amount of work.
“Look at where records are made now. It’s completely different,” he added. “There’s only a few big studios left and they get all the business and that’s why they survive. The technology for the gear now, it’s so good that you don’t need to be in some $2,500-a-day studio.”
This accessibility does mean it’s much easier than it used to be for aspiring artists to get well-recorded music onto platforms like Spotify or YouTube. But, with so many artists uploading at a rapid clip, it’s harder for them to get noticed. And with fewer studios and professionals in the mix, there are fewer gatekeepers “to keep the dreck out,” Wakeman said.
