Michael Novakovich, the upbeat executive who led Visit Tri-Cities for four years, is the new president and CEO of Columbia Industries.
The Kennewick nonprofit serves people with intellectual disabilities and other barriers to housing and employment. It also boasts one of the region’s most unique organizational structures – it owns four for-profit businesses that generate revenue to support its mission.
Novakovich, who started in July, said he wasn’t looking for a new job, but Columbia Industries offered an opportunity to put his business degree to work.
He succeeded Eric Van Winkle, the board president who served as interim president after the former CEO, Brian McDermott, stepped down. McDermott is a retired executive who helped Columbia Industries execute its strategy to amass a portfolio of profit-producing businesses to bolster a budget that is only partly supported by government fees for service.
On McDermott’s watch, Columbia Industries bought the four local Round Table Pizza restaurants, Paradise Bottled Water and CI Express, a FedEx Ground contractor serving communities on the Washington-Idaho border.
Novakovich doesn’t envision making additional acquisitions but said he wouldn’t entirely rule it out.
As the new president and CEO, Novakovich’s orders are simple: deepen Columbia Industries’ relationships with individuals and businesses so it can expand opportunities for its clients.
“If we can find better ways to educate the community (about Columbia Industries,) we can provide more services,” he said.
Novakovich said he learned plenty of people know that Columbia Industries exists, but many are not certain of its mission. It provides a drop-in center and works to connect clients to jobs, training, housing and other services.
It employs 250 and operates four businesses. In addition to the acquisitions led by McDermott, it has a longtime shredding business, CI Shred. It recently sold its record management businesses and invested the proceeds back into its core mission.
“We’re the Tri-Cities’ best-kept secret,” Novakovich said. “We’re going to change that.”
Opportunity Kitchen, a restaurant training program, is one way Columbia Industries is putting itself and its people on the radar.
It established the kitchen training program in 2019 at the Richland Federal Building, where it operates a café serving breakfast and lunch to the public.
Clients working under Derek Smith, executive chef and instructor, learn about working in the food service industry. To date, 28 have graduated and gone on to jobs in Tri-City restaurants, coffee shops, and more.
It raised its profile this summer when it opened a stall at the new Public Market at Columbia River Warehouse in downtown Kennewick. Opportunity Kitchen sells grab-and-go items made from scratch and is open during regular hours at 10 E. Bruneau Ave.
Its baked goods are sold at Peacock Coffee at The Parkway in Richland.
Novakovich called the market stall an example of how Columbia Industries can embrace partnerships in the community and find meaningful roles for its traditional client base, people with disabilities who face barriers to employment, social interaction and housing.
CI Shred, which is Columbia Industries’ oldest business line, is another avenue for growth. As commercial rivals pull out of the market, CI Shred has extended its geographic reach.
As with most organizations, Columbia Industries continues working to emerge from the Covid-19 pandemic, which affected its business lines in different ways.
Paradise, the bottled water business, shrank as corporate clients who used its service sent their employees home.
CI Shred had fewer documents to shred, and Round Table’s lunch business dried up during shutdowns, although pizza sales remained.
The packaging business was a bright spot as customers turned to online shopping.
It all adds up to keeping close tabs on the bottom line.
“We’re watching this closely and managing variable costs,” he said.
Novakovich said one of its biggest challenges is adapting to a change in the way employers pay workers who are disabled.
Washington is one of a dozen or so states to eliminate subminimum wages for people with disabilities.
The rule barring subminimum wages takes effect on July 31, 2023.
After that, the Washington Department of Labor and Industries will no longer issue subminimum wage certificates for workers with disabilities. Employers who hold active certificates after that may request one-year extensions.
Novakovich said Columbia Industries got ahead of the issue with clients who performed janitorial and maintenance work at the federal building. They have been converted into staff members and are now paid minimum wage, he said.
Learn more at columbiaindustries.com.
Evening of Miracles
The fundraiser gala will highlight CI’s mission, programs and new ventures.
It’s from 5:30-9 p.m. Oct. 20 at Red Lion Hotel, 1101 N. Columbia Center Blvd., Kennewick.
Tickets include dinner, dessert and two beverage tickets. They cost $125 a person, or $175 for a couple.
Go to bit.ly/eom2022.
Editor's note: The Sunset Soiree has been postponed until May 2023.