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®

www.crainsdetroit.com Vol. 27, No. 39 SEPTEMBER 19 – 25, 2011 $2 a copy; $59 a year

©Entire contents copyright 2011 by Crain Communications Inc. All rights reserved Page 3 Tough work Health Alliance Plan eyes Healthier businesses self-funded insurance biz begins on Sphinx founder expands insurance bring back pay raises his dream with new nonprofits exchange Survey: Merit hikes at 3-year high, average 3% BY SHERRI WELCH Last December, when it was for the coming year. “We’re kind BY AMY LANE CRAIN’S BUSINESS feeling more confident about the of gauging the economy and try- CAPITOL CORRESPONDENT economy, the staffing company ing to keep pace with what’s hap- Inside Like many companies, Kelly Ser- began layering them back in. pening with the economy.” The wheels are starting to move vices Inc. halted its merit increas- It has since reinstated its 401(k) The employee compensation on a new statewide health insur- es, 401(k) plan contributions, em- match, stock awards, employee an- picture is brightening, according Ann Arbor State Bank plans ance exchange, as outlined by Gov. ployee bonuses and stock awards nual bonuses and merit increases to a newly released American Soci- Rick Snyder last week in his leg- $50M in commercial loans, in 2009 because of the economy. effective July 1 for the 8,000 full- ety of Employers survey. islative message on health and Troy-based Kelly (Nasdaq: time employees at its headquar- Merit increases are at a three- Page 4 wellness. KELYA) intended to add the base ters and all its branch and regional year high, both in frequency and Legislation is expected to be in- pay increases and benefits back locations around the globe. in size, and the number of compa- troduced this week, likely in the in when the economy started to “Things are looking up,” said nies freezing employee pay has Senate, that will create a improve, said Jane Stehney, man- Stehney, who declined to give spe- framework to authorize the ex- ager of public relations. cific projections on pay increases See Raises, Page 28 change, which WOMEN will be called MI Health Market- place. The ex- TOWATCH change, which would be estab- lished as a non- profit, will serve individuals and Tiger deals deliver small business- es and is man- Hilfinger dated by nation- CEO’s off-field plays are big part of team’s on-field success 20ll al health care reform. The nonprofit would be gov- BY BILL SHEA eral weeks trying getting his team back to Sixteen who set the erned by a board that would be ap- CRAIN’S DETROIT BUSINESS the World Series. MORE TIGERS pointed by the governor and have Going into Friday’s game at Oakland, standard, from corporate the ability to appoint an executive Dave Dombrowski read the bestselling the Tigers were expected to wrap up their The deals: director. There also would be an economics book Moneyball after it first Division Six key players to academia, Page 13 the Tigers advisory board that would include was published in 2003, title and would begin the best-of-five divi- signed – and representatives of small business, but he doesn’t know sion series playoff Sept. 30. two they This Just In consumers, insurance plan pro- whether he’ll have time Detroit’s return to the postseason is skipped, viders, agents and others. to see the Hollywood largely credited to personnel moves made Page 29 Other issues remain to be film adaptation that by Dombrowski, who also slashed $27 mil- Playoff Bills call for more Internet worked out: conflict-of-interest comes out this month. lion from the team’s player payroll by payoff: Nearly sellers to collect sales tax policies, funding and making sure That’s because the Opening Day to get it to about $107 million. $5M for each the technology of the exchange ’ CEO, “Overall, the Tigers are improved — game played at Bills are expected to be in- works well. president and general nearly across the board — while cutting , troduced as early as Tuesday Crain’s spoke with the adminis- manager will be too Page 29 that would require more In- tration’s lead on the exchange — Dombrowski busy over the next sev- See Tigers, Page 29 ternet sellers to collect Mich- Steven Hilfinger, director of the igan’s sales tax. Michigan Department of Licensing and The legislation would be Regulatory Affairs — about what’s en- Recent acquisition pitches similar to a New York law visioned. Sept. 5 in a 4-2 win over the Cleveland that requires remote vendors Indians. that have “affiliate” relation- ships in the state to collect Q&A with Steven Hilfinger, Page 26 sales taxes on purchases made by residents of that state from that vendor. Examples include in-state COMING UP businesses that refer cus- Speaker: Steven Hilfinger will talk tomers to the Internet ven- more about Michigan’s proposed dor’s website or arrange- health information exchange at ments in which in-state Crain’s Oct. 20 Health Care Summit. For more information, see See This Just In, Page 2 www.crainsdetroit.com/events. NEWSPAPER

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Page 2 CRAIN’S DETROIT BUSINESS September 19, 2011

ed today to announce the return Blue Cross had projected first- 2010 with a disclosed value of NOMINEES SOUGHT THIS JUST IN of automotive manufacturing op- year sales of 30,000. $29.4 billion. erations to its Detroit campus While Simply Blue products Suppliers accounted for 50 per- FOR REAL ESTATE AWARDS ■ From Page 1 through a space and employee are similar to other plans offered cent of the deals, mostly driven Crain’s is seeking nominees from leasing agreement with Android In- by Priority Health and Health Al- by market consolidation, the the real estate industry to be businesses sell products through dustries LLC. liance Plan of Michigan, Dunn said analysis noted. recognized for their work. the Internet company. Android is leasing about 70,000 the Blues’ decision to cut rates 5 Europe was the most active re- The deadline for nominations for A study commissioned by the square feet from Focus: Hope for percent to 20 percent compared gion in the deal space, represent- the Real Estate Excellence Awards Michigan Retailers Association and assembling headliners and sus- with older products have ap- ing 42 percent of global deal vol- has been extended to Sept. 27. released last week estimated that pension modules for the Chevrolet pealed to policyholders. About ume. However, deals in North Awards will be presented at the Michigan would see a $35.9 million Volt for delivery to the nearby Gen- 20,000 policies are from new cus- America represented 51 percent University of Michigan/Urban Land increase in sales and use tax rev- eral Motors Co. Hamtramck assem- tomers, he said. of the deal volume, led by foreign Institute Real Estate Forum Nov. 9 and 10 in Detroit, and winners will enue if a state remote vendor affili- Simply Blue offers four de- investment. bly plant. discuss the state of commercial ate law were to increase tax rev- Focus: Hope is leasing 18 em- ductible plans that range from — Dustin Walsh real estate at the event. enue as much as in New York. $500 to $2,500, with office co-pay- ployees — some them came The awards highlight leadership Overall, the Public Sector Consul- through its educational programs ments that range from $20 to $30. United Solar eyes World Cup and accomplishments in the real tants Inc. study estimated that — to Android. The Simply Blue Health Reim- estate community of metro Detroit, Michigan will lose out on an esti- “We’re also referring some of bursement Account has de- United Solar, a subsidiary of focusing on a person’s impact on mated $141.5 million in sales tax our students to their Warren op- ductibles that range from $1,000 Auburn Hills-based Energy Con- the industry. from electronic remote sales in eration,” said Kathy Moran, Focus: to $4,000. Co-pays are $30 for of- version Devices Inc. (Nasdaq: To nominate someone, please visit 2012. And an estimated $147.5 mil- Hope’s communications manag- fice visits. ENER), will embark on a project www.crainsdetroit.com/nominate lion will go uncollected from other er. “We hope that people in our — Jay Greene this month that could lead to in- or contact Senior Reporter Daniel remote vendors, such as catalog immediate neighborhood will be stalling solar systems on all the Duggan at [email protected] or (313) 446-0414. and mail-order companies. able to get jobs here, and … we’re M&A up in first half of 2011 soccer stadiums in Brazil that The retailers association wants looking for opportunities for peo- will be used in the 2014 World to rectify inequity between brick- ple who are in our educational While economic worries have Cup tournament. and-mortar retailers, which must programs.” stalled automotive merger and United Solar will provide an add on Michigan’s 6 percent sales — Sherri Welch acquisition activity going into array of solar laminates to pro- CORRECTION tax; and Internet, mail-order and the fall, deals were up during the duce 238 kilowatts of power at the first half of 2011. 32,000 seat Estadio de Pituacu in Ⅲ In the Health Care Hero story catalog sellers, which do not. Simply Blue is Blue Cross’ about Robert Levine on Page 34 of The bills will be sponsored by In the first six months of the Salvador, a project that is sched- year, 303 deals closed globally uled to be completed in Decem- the Sept. 12 edition, guided relax- state Reps. Eileen Kowall, R-White fastest-growing PPO product ation should have been described Lake Township, and Jim Ananich, with a disclosed value of $18.8 bil- ber. Blue Cross Blue Shield of Michi- as using deep breathing and relax- D-Flint, said Tom Scott, senior vice lion, according to the latest The construction manager is a gan’s Simply Blue, a suite of high- analysis by PricewaterhouseCoop- Gehr- ation. Also, somatic functional president of communications for Brazilian company named deductible PPO products for ers’ automotive transaction ser- licher Ecoluz Solar do Brasil, which therapy should have been de- the retailers association. smaller companies, has enrolled vices practice in Detroit. plans to bid for solar projects at scribed as using simple move- — Amy Lane 125,000 members since January, The 2011 deals are a stark con- all 12 World Cup venues. The ments to release tight muscles. making it the Blues’ fastest-grow- trast from the first six months of Brazilian government has pro- Levine is director of the Henry Ford Auto supplier to set up shop ing PPO product in years, said 2010, which saw only 150 M&A mised all the stadiums will gener- Center for Integrative Wellness. In ad- John Dunn, the Blues vice presi- deals worth $1.6 billion — the ate solar power by the time the dition, the center received $380,000 on Focus: Hope campus dent of middle- and small-group lowest deal value in five years. games take place. for a pilot project from Blue Cross Nonprofit Focus: Hope is expect- sales. There were a total of 521 deals in — Tom Henderson Blue Shield of Michigan. An incor- rect funding figure was used in the story.

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September 19, 2011 CRAIN’S DETROIT BUSINESS Page 3

Second Stage Extra HAP wants slice “You have to take Choosing suppliers: When something you risk takers are the safe pick, really believe in and Page 9 of self-funded scrape and scrap as you build it.” Aaron Dworkin, insurance biz Sphinx Organization Inc.

BY JAY GREENE fully insured arrangement. AARON ECKELS CRAIN’S DETROIT BUSINESS Blue Cross controls more than 70 percent of the health insurance Company index Blue Cross Blue Shield of Michigan market in Michigan, with more has a new competitor in the ad- than 4.35 million covered lives. These organizations appear in this week’s Crain’s ministrative services organization That’s down 100,000 from 2010, Dworkin widens reach Detroit Business: business line: Health Alliance Plan of mostly a result of declines in group American Society of Employers ...... 1 Michigan. plans because of the economy. The Ann Arbor State Bank ...... 4 HAP is in the final stages of sign- Blues cover 5.6 million nationally. Apex Organization ...... 3 ing a contract with Grand Rapids- Other health insurers that offer BAE Systems ...... 25 with 2 new nonprofits Bank of Ann Arbor ...... 4 based Administration third-party ad- Systems Research ministration Bank of Michigan ...... 4 Corp., which does We did an contracts with Billhighway ...... 9, 10 business as ASR “ employers in- Founder of Sphinx targets Blue Cross Blue Shield of Michigan ...... 3 Health Benefits, a analysis, clude Aetna, Chrysler Group ...... 16 for-profit compa- Cigna and Priori- diversity, social entrepreneurs Continental Automotive Systems ...... 28 ny, to conduct and there ty Health, which Detroit Media Partnership ...... 18 claims process- has offices in Detroit Tigers ...... 1 BY SHERRI WELCH … you have to take something ing, billing and is a Grand Rapids Domino’s Pizza ...... 21, 28 CRAIN’S DETROIT BUSINESS you really believe in and scrape customer service. and Farm- Duo-Gard Industries ...... 9 That will allow tremendous ington Hills. and scrap as you build it,” said As the Sphinx Organization Inc. Essential Bodywear ...... 11 the Detroit-based Jim Scoggin, Dworkin, who was named a prepares to enter its 15th year, Force Protection ...... 25 health insurer to market co-owner, of Champion of Change in Arts Ed- founder Aaron FordDirect ...... 15 grow its self-in- Troy-based ucation by the White House last sured business need. Great Lakes Em- Dworkin could month. General Dynamics Land Systems ...... 25 significantly, said ” ployee Benefit rest on his lau- “If you’re persistent, you can General Motors ...... 13 Mary Ann Tournoux, Mary Ann Tournoux, Health Alliance Services Inc., rels, given the build it into a sustainable enter- Great Lakes Employee Benefit Services ...... 3 organization’s HAP’s chief market- Plan of Michigan said a HAP-ASR prise that in the end makes a real Harper Associates ...... 28 success in ing officer. combination difference in the world.” Health Alliance Plan ...... 3 bringing more “We did an analysis, and there is will provide a strong alternative for After having some success in Henry Ford Health System ...... 20, 25 black and Lati- a tremendous market need” in businesses and much-needed compe- increasing diversity in classical Kelly Services ...... 1 no musicians Southeast Michigan, Tournoux tition for Blue Cross. music, Dworkin is taking aim at Loomis Sayles ...... 28 into classical said. “In the nine-county area, 39 “We are excited about it. It the fields of science, technology, Macomb-Oakland University Incubator ...... 25 music and percent (of employees) are in self- opens up a very viable option for engineering, math and architec- McCann North America ...... 21 American or- UP FOR GRANT funded programs.” middle-market to large groups that ture. McNaughton-McKay Electric ...... 10 chestras. Tournoux said HAP thinks want to self-fund,” Scoggin said. Wello founder: He seeded a new nonprofit, But he isn’t Michigan Dept. of Community Health ...... 17 health care reform is creating a “As a consumer, I don’t want to Dworkin TV Apex Organization Inc., in 2009 with resting. Michigan Dept. of Licensing & Regulatory Affairs . . . 26 greater incentive for companies see this state evolve into a single- show could help a portion of the $500,000 “genius He continues Michigan Economic Development ...... 7 with more than 100 employees to payer system, and that’s what is get WaterWheel grant” he received four years ear- to devote the rolling, Page 27 Michigan Economic Growth Authority ...... 7 self-fund health benefit costs to save happening with the Blues. We lier from the Chicago-based John bulk of his time Michigan Strategic Fund ...... 7 money, increase efficiency and al- need competition, and HAP with D. and Catherine T. MacArthur Foun- to Sphinx, but part of his energy is Midtown Detroit Inc...... 20 low more flexible plan designs. ASR now offers a real strong op- dation and personal investments going into two new nonprofit en- Midwest Health Plan ...... 25 Companies self-fund their health tion to the Blues.” that together total tens of thou- deavors as well — one to bring Navistar Defense ...... 25 benefit costs by paying for claims Blue Cross declined to comment. sands of dollars, he said. that same diversity to the sci- OnStar ...... 16 through a third-party administra- While HAP has only one client “I come from a family of scien- ences and architecture and a sec- Serafina Arts ...... 27 tor that processes the claims. These with 3,400 employees under a self- tists — my mother and father ond to support social entrepre- Sphere Trending ...... 11 and other companies also some- funded contract, Tournoux said were both neuroscientists, and neurs like himself. times contract with health mainte- several other companies have my brother is a cellular biologist Sphinx Organization ...... 3 nance organizations for health ben- “I definitely have a sense of The Ideal Group ...... 14 efits for a set monthly fee under a See HAP, Page 25 déjà vu from Sphinx’s early years See Dworkin, Page 27 Trott & Trott ...... 17 U.S. Army Tacom ...... 25 UM Ross School of Business ...... 14 United Road Services ...... 18 Walbridge Aldinger ...... 28 Wayne County Airport Authority ...... 15 Macomb crafts growth plan for defense amid cutbacks Wello ...... 27 WSU School of Medicine ...... 19 BY CHAD HALCOM team, you don’t hire the coach, pleted by the joint defense task lege by the New Economy Initiative CRAIN’S DETROIT BUSINESS then expect he’ll pick up a couple force that the county convened for Southeast Michigan. of good players and immediately with the cities of Sterling Heights Hackel said he is also meeting Macomb County Executive you start winning. You will proba- and Warren. with Sterling Heights officials Mark Hackel still backs develop- bly lose a couple more (games) be- The task force — made up of managing the Macomb-Oakland Uni- Department index ing a national branding and mar- fore the new strategy gets a chance business owners, executives, elect- versity Incubator as well as owner- keting strategy to retain jobs and to work,” Hackel said. “Building ed officials and military leaders as- President Ron Lamparter of the BANKRUPTCIES ...... 4 attract defense industry invest- an industry is the same way, and sembled this year to cultivate the Defense Corridor/Center for Collabo- BUSINESS DIARY ...... 23 ment to the county, which could as you implement the training, the economic development potential ration and Synergy about ways to re- CALENDAR ...... 24 shed more than 1,000 such jobs by team begins to get better.” in the defense industry — is com- cruit new startups and tenant CAPITOL BRIEFINGS...... 7 year’s end compared with the year Hackel said the county expects pleting a strategy report with help businesses to those facilities. An before he took office. to gain direction soon on a defense from a $428,000 planning grant CLASSIFIED ADS ...... 25 “When you’re building a football strategy from a report to be com- awarded to Macomb Community Col- See Macomb, Page 25 KEITH CRAIN...... 6 MARY KRAMER ...... 6 OPINION ...... 6 Crain's on SBAM radio “Buy Michigan” Second Stage Workshop PEOPLE ...... 22 A Crain’s workshop Thursday will look at the Pure THIS WEEK @ Listen to Publisher Mary Kramer and Web RUMBLINGS ...... 30 Editor Gary Anglebrandt on SBAM’s online Michigan Connect plan. The MEDC’s Mike Finney is WWW.CRAINSDETROIT.COM radio show last week, crainsdetroit.com keynote speaker. Details: crainsdetroit.com/events STAGE TWO STRATEGIES ...... 11 WEEK ON THE WEB ...... 30 20110919-NEWS--0004-NAT-CCI-CD_-- 9/16/2011 5:30 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS September 19, 2011 Ann Arbor State Bank raises $5M,

Average net sales for the top quartile of stores* plans $50M in commercial loans Other Battery Franchises BY TOM HENDERSON list of about 50 would-be investors Bank of Michigan, said the fundrais- CRAIN’S DETROIT BUSINESS when he started the fundraising. ing is good news for area bankers. Can’t Say That! He said 92 eventually made com- His bank, which is 51 percent Ann Arbor State Bank is expected mitments, which averaged about owned by the struggling Capitol Join the nation’s largest and fastest growing battery and to announce today that it has fin- $55,000 at $30 a share. Bancorp Inc. of Lansing, is raising light bulb franchise with over 465 locations in 46 states ished a private stock offering of “We’ll leverage that money out capital, too. 16.8% increase in all store net sales* $5 million — which it plans to at a 10-to-1 ratio, which allows us Sarafa, however, said the Ann Opened 138 stores in the last 3 years leverage into $50 million in new to do another $50 million in com- Arbor fundraising should be Specializes in battery & light bulb solutions commercial lending. mercial lending,” said Broucek. viewed in context, that it was for a Since the recession began, some Includes both retail and business to business revenue streams “That will have a big impact in the bank in a city that avoided much area banks have been able to raise local community.” of the recession woes. 23 years experience in a growing industry money from existing shareholders “It’s nice to see a local competi- “When will the banking indus- to stay afloat, but raising new tor raise some additional capital to try in Southeast Michigan be at- rounds of money from new share- support future growth opportuni- tractive enough to outside in- holders has been rare. In April, Visit our website or call us for more information ties,” said Tim Marshall, the presi- vestors without loss-sharing Clarkston State Bank raised $8 mil- dent and CEO at Broucek’s former arrangements with the FDIC or BatteriesPlus.com/Franchising 1.866.687.1109 lion in new capital, $3 million from bank. Marshall said his bank will passing the hat around the board- *Net sales average of $1,365,289 is based on the net sales average for the 95 stores that represent the top 25% of all 383 stores open during the entire 2010 calendar year. Of those 95 its board of directors and $5 mil- stores, 34 stores (or 36% of the 95 stores in the top quartile) met or exceed the net sales average (or 9% of the 383 stores open during the entire 2010 calendar year). All store net revenue be able to expand its loan opera- room?” he asked. increase of 16.8% is based upon 2010 sales for all stores open as of 12/31/10 vs 2009 sales for all stores open as of 12/31/09. Of the 443 stores included, 149 (or 34% of the 443 stores) lion from two outside investors. met or exceeded the store net sales increase. There is no assurance that you will do as well. (See Item 19 of our FDD for further details.) tions, too, funded not with exter- The reference to the Federal De- The bank began the offering in nal capital but with internal posit Insurance Corp. was about in- early August with a minimum tar- growth, having grown its assets by vestments by Talmer Bank of Troy get of $4 million and hit $5 million nearly $70 million for the 12 and Level One Bank of Farmington in three weeks. It continued to re- months that ended June 30 to Hills in banks shut by regulators. ceive commitments from would-be $706 million. Tom Henderson: (313) 446-0337, shareholders, with the round Michael Sarafa, president and [email protected]. Twitter: eventually being oversubscribed CEO of Farmington Hills-based @tomhenderson2 at $6.5 million. William Broucek, the bank’s chairman and CEO, said he TAKE YOUR EVENT TO A wanted to allow more share- Championship holders to par- ticipate and will reduce the num- Level ber of shares they can buy so as not to exceed the $5 million Broucek target. “We’ve had a lot of demand for shares since we opened, but none were available,” said Broucek, who launched the bank in January 2009 with a capitalization of $12 million. Broucek co-founded the Bank of Ann Arbor in 1995, retired from the bank in 2005 and, bored by retire- ment, decided to form another Meeting & Event Spaces at Olympia Entertainment Venues bank. Given the timing of its Call For Details 313-471-3333 launch, during the recession, the Special.Events@Olympia Entertainment.com bank has largely avoided the loan write-offs that have plagued other community banks. Those write- offs were largely commercial loans based on prerecession valuations on properties that soon were un- derwater. Mission Exceptional! 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Page 6 CRAIN’S DETROIT BUSINESS September 19, 2011 OPINION MARY KRAMER BMI database must Can ed reform bridge divides? When taking office in Rhee whose first name children in Detroit have voted — the Michigan House in used to be “embattled.”) by sending their children to public 2006, former Oakland For his work in the charter schools in search of some- County commissioner Legislature, Crain’s se- thing better. safeguard privacy Tim Melton had his lected Melton as one of Charters aren’t the silver bullet. sights set on being ap- our “40 under 40” But unless we stop failing children ichigan may become the first state in the country to pointed to the economic achievers for 2010. It — in Detroit and throughout the require physicians to chart the body mass index of development committee. will be interesting to country, in cities, suburbs and children under 18 years of age. He got assigned to ed- watch him promote small towns — we don’t have M ucation instead. Rhee’s agenda as an ex- much of an economic future. Gov. Rick Snyder’s proposal to do so last week ruffled some Lucky for him. Lucky perienced lawmaker. Good luck to Tim Melton. libertarian-minded feathers. for Michigan. Rhee told The Wall But the proposal is true to the governor’s “nerd” roots and Melton eventually Street Journal the agen- Mea culpa his pledge for a data-driven administration. He wants real data chaired the House Edu- da includes lobbying to help set policy to deal with what many health experts deem cation Committee and worked with for mayoral control of schools to In scheduling the annual his Republican counterpart in the concentrate authority, and ending Crain’s House Party, our events a public health epidemic. And in just a cursory online search, Senate, Wayne Kuipers from Hol- the use of seniority as the yardstick team used a calendar that clearly estimates of the percentage of children who fit the definition of land, to enact in protecting teachers from layoffs. labeled Sept. 29 as the start of the obese ranged from 12 percent to 17 percent. important edu- On his Facebook page, Melton Jewish high holiday Rosh Under Snyder’s plan, physicians would log a child’s BMI — cation reforms, wrote: “Education reform should Hashanah. But as readers have re- using a formula based on height and weight — into the state’s including grad- know no partisan boundaries, and minded us, it actually starts at ing teachers on in my new position, I will help sundown the night before — exact- 13-year-old database created to track immunization records. whether chil- form coalitions for change around ly when we’ve planned this year’s Is this government as nanny? Privacy issues must be ad- dren actually the country that cut across the old House Party. We apologize for this dressed. learned in their divides.” unfortunate scheduling conflict — But public health officials are applauding and some em- classrooms. I wonder if he can start with De- and we will consult online calen- ployers are, too. Like smoking, obesity has been linked to seri- Late last troit. There is a chronic percep- dars that record specific religious month, and in tion among some community ac- observances for all faiths as we Melton ous, chronic conditions such as heart disease, stroke, diabetes his third term tivists here that until the state plan our events in 2012. and some forms of cancer. Tax dollars funding Medicaid and representing his hometown of Pon- intervened, DPS was doing fine fi- Medicare pay the tab for millions of Americans whose health tiac (and neighboring Auburn nancially. All Detroit needs is its Mary Kramer is publisher of is compromised by obesity. Hills), Melton announced he was own duly elected school board — Crain's Detroit Business. Catch her Employers pay, too, through plans that cover family mem- joining StudentsFirst, the Califor- or so the thinking goes. The prob- take on business news at 6:10 a.m. nia advocacy group created by lems started when the state Mondays on the Paul W. Smith show bers. Overweight kids have more medical problems and miss Michelle Rhee, the former chancel- “robbed” Detroiters of their votes on WJR AM 760 and in her blog at more school days; that means employees often miss work, too. lor of Washington, D.C., public for an elected school board. www.crainsdetroit.com/kramer. What happened to personal responsibility, you might ask? schools. (Yes, the same Michelle But parents of more than 50,000 E-mail her at [email protected]. Good question. Ultimately, the solution to the sky-high increases in health care costs rests in part on the ability of people to take responsibil- ity for what they can control, whether they are uninsured, cov- ered by Medicaid/Medicare or covered by an employer’s plan. TALK ON THE WEB The key with Snyder’s plan is how the data will be used. From www.crainsdetroit.com comes more competitive. As long as Re: Chevrolet’s offer Reader responses to stories and Sports stars align in Motown the unions are in charge, taxpayers In 2029, when those same base- blogs that appeared on Crain’s will be denied school-of-choice solu- ball players are 25 years old, they Web site. Comments may be tions like vouchers. We know Detroit is Hockey Town. can visit that still-empty lot with edited for length and clarity. Michael Lowry But this fall, it will be a Tiger Town and Lions Town, too. their own children and volunteer With all three pro sports being played in downtown De- to finally fix it up. Maybe then, Re: Printing license tabs online someone will see the light. But that’s Hurray for common sense. I have troit, fans are having the rare treat of seeing the baseball fran- Wasn’t one of the original pur- doubtful. found most state agencies … to be chise win a division title — and maybe a World Series berth. poses for no-fault insurance an ef- John Galt full of incompetent, disrespectful fort to reduce the number of law- Meanwhile, the start of a winning season for the Lions just and arrogant employees. suits? How much more insurance will as baseball hits October playoffs will bring more excitement Re: Medicaid costs could rise $30M Bob Prudhomme than a generation can remember. I have to carry to protect myself in first year if no-fault bill is approved from the lawsuits? Re: Lutz to help Durant campaign When it comes to the Lions and the Tigers, Detroit fans Without no-fault insurance in Mynsbem An 80-year-old auto guy helping have learned to be wary of hope. this state, our Medicaid will with- Re: Bill would stop schools a 62-year-old guy who looks 80 try But with names like Miguel Cabrera, Justin Verlander, out a doubt be stressed even far- to convince 20-somethings to vote Victor Martinez, Calvin Johnson, Matt Stafford and ther than it currently is. If it’s not from deducting union dues against a 57-year-old guy. Just Ndamukong Suh populating the diamond and the gridiron, De- broken, leave it alone. We will never improve our pub- great. troit seems poised for a competitive autumn. angelwings lic education system until it be- troyresident KEITH CRAIN: We are only as strong as the weakest link Last week, I was lucky enough be shared by all of the ing applied to the weak In many European countries, be very easy for the United States to spend some time in Germany for countries locked to- countries is quite the prime minister or chancellor is to be drawn into Europe’s difficul- the biennial auto show in Frank- gether by that curren- strong. not elected by direct vote but by ties — even more than we are furt. cy. I can’t help but think the party that wins the majority of now. Needless to say, there were lots Almost everyone that if we were part of seats in parliament or the elected Our treasury secretary will be of conversations about cars and re- feels that the common the EEC, we would be chambers. in Europe this week. He has urged membering 9-11. market and currency, told in no uncertain But that doesn’t seem to matter. leaders to act more forcefully on But what really surprised me eliminating duties and terms that we will have The economy is bad, and nobody the debt crisis. Even though he was just how much of an economic tariffs, were good ideas. to change the way we is happy with their leaders — re- says it’s Europe’s problem, it mess the European Economic But when there is a are running our federal gardless of how they were select- seems hard to believe we’ll be able Community is in these days. problem with one coun- government, or else. ed. to sit on the sidelines. I doubt that when they formed try, they all have to ral- I also learned on this Make no mistake: Europe, along As if we don’t have enough prob- the common market and ended up ly around and put the trip that there’s general with the rest of the world, has seri- lems here, it looks like we’re going with the European Euro currency squeeze on that nation to clean up unhappiness with top elected offi- ous financial problems that won’t to have to continue to keep a close that anyone realized that the grief its act for the good of the rest. cials among Europeans I spoke go away soon. eye on Europe. Its problems could of a few member countries would And the amount of pressure be- with. Unless we’re careful, it would become ours very easily. 20110919-NEWS--0007-NAT-CCI-CD_-- 9/16/2011 5:31 PM Page 1

September 19, 2011 CRAIN’S DETROIT BUSINESS Page 7 Out with the old incentives, in with the new LANSING — With the U.S. and Canada. Michi- “The investment community is Quackenbush said the commis- Comings & goings Oct. 1 start of the fiscal gan utilities were among one constituent here, but I’m sion “will have lots of dockets open year, the state’s new $100 Capitol the 80 companies he has aware that (there are) many, many where there will be lots of posi- ■ Lance Binoniemi, executive di- million pot of economic Briefings been covering. constituents,” he said in an inter- tions taken by different parties. rector of the Michigan Licensed Bev- development incentives Quackenbush said hav- view with Crain’s last week. I’m going to be very open. I’m very erage Association, has been named is official. ing an understanding of Quackenbush is slated to leave interested to hear all sides of the vice president of government rela- But the state isn’t done the investment communi- UBS on Oct. 14 and start at the PSC issues.” tions at the Michigan Infrastructure handing out dying tax ty is important in his on Oct. 17, and between now and Quackenbush will have a and Transportation Association. credits. new role, but he also then he plans to spend time becom- $113,000 salary and replace Orji- ■ Jennifer Hoff, former director of The Michigan Economic brings perspective from ing familiar with the commission. akor Isiogu, who will continue to communications for the Michigan Growth Authority board his early years, holding Asked whether Snyder asked him serve on the three-member com- Republican Party, has been named will continue to meet as senior financial analyst to delve into any particular areas, mission as a member. grassroots action coordinator for needed through the end roles with the Illinois Com- Quackenbush said it’s “an open A chartered financial analyst, of the year to approve Amy Lane merce Commission. slate at this point. He knows my Quackenbush holds a bachelor’s the Michigan Chamber of Commerce. previous commitments His background also background; he knows I have a busi- degree in business economics from ■ Lisa Dedden Cooper, aide to made to projects that have been in includes managing Sprint Nextel ness background, some investment Calvin College and a master’s de- then-U.S. Rep. Mark Schauer, D- the Michigan Economic Development Corp.’s treasury department and lo- community background. … He said gree in finance from Michigan State Battle Creek, has become advoca- Corp.’s pipeline. cal telecom division. be fair and balanced, and go to it.” University. cy manager for AARP Michigan. The MEGA tax credits and those for brownfield redevelopment and historic preservation are among those being eliminated in the state’s switch to a new tax system. They’re being replaced by the Michigan Business Development Program and Michigan Communi- ty Revitalization Program, initia- tives that will have a combined $100 million in the upcoming fiscal year to offer in incentives. The new programs will provide grants, loans and other assistance. The Michigan Strategic Fund ap- proved program guidelines in Au- gust, but bills authorizing the pro- grams are still on the move in the Legislature. Senate Bills 566-568, for the com- munity revitalization program, were approved last week by a Sen- ate committee and are on the Sen- ate floor, while SB 556, for the business development program, and companion SB 644 are expect- ed to move out of committee this week. All five bills may clear the Senate this week and go to the House. The MEDC doesn’t know when the first deal under the new incen- tive programs will go to the Strate- gic Fund board for approval, but it probably won’t be until November or December, said Kathleen Fagan, MEDC communications specialist. With both new programs, the Strategic Fund board will approve all support for projects of $1 million or more. In the smaller cases, two of the Strategic Fund board delegates will approve the support. The state hopes to have an appli- cation process for the new pro- grams ready by the Oct. 26 Strate- gic Fund board meeting. As for the soon-to-be-gone tax credits, the MEDC has several pro- jects that have outstanding com- If you have an opportunity, we’re ready. We’re ready to help mitments for MEGA and brown- field credits, and those still could be you achieve that next level of success, just like all the businesses addressed in MEGA board meet- we’ve extended nearly 10 billion dollars to so far this year. And ings this year. All outstanding commitments we plan to lend another 28 billion dollars in the year to come. not acted on will die Dec. 31. We also support local businesses with financial solutions and New PSC chairman services that can improve productivity and, ultimately, help them John Quackenbush started his achieve success. Find out how we can help you drive results at career as a staffer in a state agency 53.com/drivingresults or call 1-877-804-2091. regulating utilities. Now he’s re- turning to that arena as the chief regulator. Gov. Rick Snyder last week tapped the UBS Global Asset Manage- ment executive to chair the Michi- gan Public Service Commission. Republican Quackenbush, 52, has been managing director and se- Loans subject to credit review and approval. Rates may vary based on credit qualifications. Fifth Third Bank, Member FDIC. Equal Housing Lender. nior investment analyst in the UBS Chicago office, responsible for eq- uity research of the transportation, utilities and coal industries in the dbpagead.qxp 7/29/2011 4:17 PM Page 1

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September 19, 2011 CRAIN’S DETROIT BUSINESS Page 9 Extra

growing small businesses A CONVERSATION WITH Partners Vince Thomas, Billhighway

Billhighway on road to growth with passion Vincent Thomas started Automated Payment Highway Inc., which does business as Billhighway, as a college student in 1999 as a response to a Entrepreneurs seeking suppliers find risk takers are the safe choice need: to get him and his roommates at Eastern Michigan University to pay BY GARY ANGLEBRANDT as those used at bus stops, smoking shel- their bills on time. CRAIN’S DETROIT BUSINESS NOTABLE DUO-GARD PROJECTS ters and walkways. Billhighway links an organization’s When working on a new product, Miller Ⅲ Since 2008, Duo-Gard Industries Inc. bank account with its payments and uo-Gard Industries Inc. started in 1984, has supplied 90 percent of the translucent looks for other businesses that have a sim- accounting systems. The basis of that making specialty window panels for canopies for Wal-Mart supercenters. ilar appreciation for innovation and system proved to be a fit for D retrofitting old factories. change — ones he feels have maintained Ⅲ At Livestrong Sporting Park, stadium for organizations with a member or donor In recent years, the manufacturer of ar- the Kansas City Wizards soccer team, Duo- their entrepreneurial spirit and under- base such as professional associations chitectural products has branched into Gard supplied 70,000 square feet of stand the potential for the product. If he and community nonprofits. What making walls illuminated by a special translucent canopy that projects over the finds he is doing too much explaining, it started as a simple spreadsheet and LED gel, bicycle shelters and, as of this stands. portends supplier relationship troubles shared bank account for Thomas and year, solar canopies. Ⅲ Duo-Gard provided its IllumaWall for a down the road: If the people at the busi- his buddies has developed into a 50- The result of the new-product push? meditation room on the television show ness need a lot of explaining once, they’re employee company based in Troy that Fifty percent growth in revenue at the “Extreme Makeover: Home Edition” in probably going to need it every time a serves 3,500 organizations. Canton Township-based company — from 2006, working with Virginia Tech. change or new idea comes up later. In June, Ernst & Young named Thomas an Entrepreneur of the Year $10 million in 2008 to $15 million last year. “There are certain business cultures for the Michigan and Northwest Ohio Coming up with ideas for these diverse heating costs, many factories had hur- that are basically there to sell product X,Y region. Crain’s Web Editor Gary products has been only half the battle. riedly bricked up their windows. But that and Z for price X,Y and Z,” Miller said. Anglebrandt spoke with Thomas. Equally important, said President David left the spaces dark and even less pleasant “We’re looking for some cultural capaci- Miller, has been finding suppliers that to work in. ty. Without that, we’re not interested.” What growth plans are under way at want to work on new products — ones Duo-Gard (then named Michigan Ener- In one situation, Duo-Gard had a deal to Billhighway? How do we get our that have maintained an entrepreneurial gy Control) developed a cellular polycar- supply a modified version of its polycar- platform out to more and more culture that keeps them chasing growth bonate panel that could replace glass win- bonate panels to the Livestrong Sporting organizations? We decided that for outside usual channels. Also key have dows. They are composed of translucent Park, a soccer stadium that opened in our program to be used by as many been connections with universities that Kansas City this sum- groups as possible, let’s go find cells that prevent heat passage in the same partners that already have a huge proved valuable in developing fresh way double-paned home windows do. mer. The modifica- number of clients. Let’s tie into their ideas. If it seems like solar canopies and LED tion required find- system and go back to them and sell Miller said growth at Duo-Gard, which walls filled with Nanogel (the brand name ing a supplier our services, too. has about 60 employees, never would of a special gel made by one of Duo-Gard’s who could build a have happened were it not for these like- suppliers) are a stretch for a business stronger version What funding route did you take minded suppliers and outside resources. rooted in 1980s factories, Miller doesn’t of the panels. when you started and how much did mind. If a potential supplier for these (Duo-Gard owns that cost? I borrowed ($40,000) from products doesn’t get what he’s trying to friends and relatives. ... It was kind of Matching spirit do, Miller moves on. See Suppliers, pieced together — $5,000 here, Miller’s father started Page 10 $10,000 here. I ran up my credit “You can’t sit around and wait for cards to do a lot of it. I wanted to go Duo-Gard as an indirect re- someone,” he said. my own route with funding formally sponse to the 1970s oil Other Duo-Gard products in- because I didn’t know what crises. To save on clude transit shelters such Billhighway even would be or could be yet. I knew the model was going to change. I didn’t want to sell some Duo-Gard Industries investor on model A, knowing it was Inc. President David going to transform itself into versions Miller, with a sample B, C, D, all the way down the line. of cellular polycarbonate Have you been approached to sell the insulated window business? Yes, we have had a lot of panels, wants interested parties. I’d say for the last suppliers that share five years, I’ve gotten interested parties his company’s to reach out, but the last two, two-and-a- entrepreneurial half, every week someone is calling. spirit. “Without that, we’re not Is there something you’d recommend interested,” he others to avoid? I think I waited too said. long to bring in what I would call the right people. You spend $30,000 on someone when maybe you should spend $70,000. It’s hard to make that $70,000 commitment, but you save the money in the long run when you get the right, better, maybe more expensive person. BOB CHASE 20110919-NEWS--0010-NAT-CCI-CD_-- 9/16/2011 10:14 AM Page 1

Page 10 CRAIN’S DETROIT BUSINESS September 19, 2011 Second Stage Extra Suppliers: Risk-taking suppliers are entrepreneurs’ safe choice ■ From Page 9 the proprietary rights to its panels partners together. You don’t have electronic components including tute for Supply Management and has Solar Decathlon in Washington, but outsources the production.) the resources to bring products to solar panels, has 700 employees worked for companies manufac- D.C., an event held by the U.S. De- Of the $1.4 million Duo-Gard market on your own,” Miller said. and has been in business for 101 turing a wide range of industrial partment of Energy in which teams was to receive for the deal, $600,000 This year’s project has been the years. Decades ago, the company products. Borders Group Inc. are challenged to come up with in- would go to the supplier that could launch of solar canopies that in- decided that it should look for brought him on as director of pur- novations for solar-powered hous- make the modification. That’s a corporate photovoltaic compo- ways to combine and customize chasing a year ago to try to help es. Virginia Tech invited Miller and big deal in the world of polycar- nents and can be connected to the the components it distributes to the book retailer through its trou- representatives to help students bonate materials, Miller said. electrical grid. There are two main meet customer needs. It formed a bles before it filed for Chapter 11 compete in the event by bringing Yet of the three suppliers he con- product lines: one for general shel- special task force, and three years bankruptcy in February. in materials and know-how. tacted, only one was interested. ter use and one large enough for ago formed a subset within that Welsh said getting the wrong Although Miller just as well One of the others, the head of housing electric vehicles. The ve- team to look for renewable energy- supplier leads to long-term prob- could have spent the time working North American operations for the hicle canopies have a charging sta- opportunities, said Mark Ferda, lems. The trick is sifting through in the office, the participation company, wouldn’t consider it at tion that can be hooked up to the account manager for the team. suppliers that aren’t up to the task. proved to be more than a fun time. all. The contact at the other com- automobile or to the grid. “We were looking to sell solar “Some suppliers won’t want to It was this event that led to Il- pany went to the top and was In pursuing suppliers of elec- products as more than just a com- take the risk, may not have the ca- lumaWall, a wall that uses a spe- turned down. Those companies tronic components, Miller found a modity,” Ferda said. “A lot of peo- pacity, the materials, the research cial gel to fill the cells of Duo- chose to play it safe, Miller said, largely passive response when it ple are out there selling a solar and development,” he said. “You Gard’s polycarbonate panels and and rather than spend time trying came to new product development. panel as a distributor. We look for have to understand their needs as then charges the gel with LED volt- to persuade them to do otherwise, “They want to hand us a opportunities to create products well as your own.” age. The wall allows sunlight to he moved on. “The others took a brochure and say, ‘Here’s what that allow additional sales for our The ideal, he said, is to end up pass through during the day and more commodity approach, not an kind of performance you can ex- customer — Duo-Gard — and at with relationships where the cus- changes colors at night. Duo-Gard entrepreneurial approach,” he pect. Good luck,’ ” he said of some the same time increase our sales of tomer and suppliers act as one supplied the structural material, said. “They just didn’t have the of the companies he encountered. solar panels.” unit competing against others. while Cabot Corp. of Boston (culture) in place.” Miller was looking for a compa- McNaughton-McKay saw a po- Getting the right supplier from the brought the Nanogel (a brand David Corbliss is director of ny whose entrepreneurial spirit tential market for the canopies at start and having a cultural under- name it has since changed to Lu- sales and marketing at Galina USA matched his. He found Mc- car dealerships and store chains, standing means new innovations, mira) and Color Kinetics of Burling- LLC, the Janesville, Wis.-based Naughton-McKay Electric Co. of he said. Matching the two compa- and cost-cutting measures will oc- ton, Mass., (since purchased by company that makes the struc- Madison Heights, which now sup- nies made sense because they cur naturally. Philips Solid-State Lighting Solutions) tured polycarbonate materials plies the charging unit and solar could hit each other’s customer “If you have to explain every supplied the LED technology. Duo-Gard sought. Corbliss said panels for the canopies. bases while taking advantage of time, you’re wasting money. It’s Although Virginia Tech was the there are only about six companies The company, it turned out, had each company’s area of expertise. not efficient,” Welsh said. original integrator behind the in the world that make these mate- created a team just for finding pho- “We were able to bring access Vince Thomas, CEO of Billhigh- product, the university allowed rials, and most of them are larger tovoltaic product opportunities. and expertise within the area of so- way in Troy, also this year em- Duo-Gard to commercialize the than Galina USA and unwilling to “They had formed an entrepre- lar applications and charging sta- barked on a new strategy that re- product — no strings attached. consider modifications. neurial group within their compa- tions. They brought the customer quired making deals with other Duo-Gard, as controller of the pri- “It’s a cookie-cutter business for ny,” Miller said. network as well as expertise to businesses. His company’s soft- mary structure of the product, them,” Corbliss said. “We’ll say, McNaughton-McKay offered en- provide physical structure which ware links nonprofit associations’ would be the main integrator and ‘Let’s take a look at it. If we can gineers and upfront work to get we don’t have,” Ferda said. bank accounts with their payment continue using the other two com- make it work, let’s make it work.’ ” the canopies launched. Steven Welsh has more than 20 and accounting systems. panies as suppliers. Miller said because small busi- “They saw enough value in what years of experience working with The strategy involves tying his Many business owners might nesses have limited resources, we’re doing to make an investment purchasing and supply chain man- software into systems already consider that sort of activity to be finding suppliers that bring tech- in what we’re doing. A lot of sup- agement issues. He teaches MBA used by organizations that are not a luxury, but Miller said it’s about nical expertise is critical, he said. pliers won’t do that,” he said. courses at Lawrence Technological Billhighway customers. That keeping the entrepreneurial sense “The key is getting the right McNaughton-McKay distributes University, is a member of the Insti- meant reaching out to the makers of exploration that led to the for- of those systems, companies he mation of the business. calls channel partners. “We’ve had a lot of value and re- He has a bulleted list of charac- turn from working on those teristics that define what a good homes,” he said. “Even though it’s potential channel partner looks considered a charitable contribu- like, including the company’s tion, it’s an investment.” available resources, how it makes The company has picked up $3 decisions and whether it has done million in sales from IllumaWall. revenue-sharing deals before. Miller also participated in Solar “We’re big on weekly or month- Decathlons in 2007 and 2009. The ly phone calls,” Thomas said. “If participation gave Miller more they don’t take those calls serious- product ideas, such as bicycle shel- ly, if on them there’s the fine take- ters, that have driven growth, and away that they don’t follow up on, led to connections with suppliers we don’t think it’s a good cultural and academics that came in handy fit for us. ... If they don’t want to in developing new products. communicate at that high of a lev- “In areas where you’re redefin- el, our belief is that a lot of balls ing performances (of materials), Audit Oversight. will be dropped.” you need to have resources out Investor Protection. And like Duo-Gard, if the com- there that allow you to get that pany in question doesn’t see the real-life data,” Miller said. potential, there’s not much use in At the PCAOB... twisting arms, he said. Your role is critical. Your influence is far reaching. “You have to walk away,” Growth ahead Thomas said. The solar canopy project is ex- The Public Company Accounting Oversight Board is looking for dynamic people opportunities available Miller tries to stay a step ahead pected to drive up revenue $2 mil- to fill dynamic roles. We have throughout the United by keeping his company engaged lion to $3 million this year, and the States for experienced CPAs, Chartered Accountants and attorneys in Inspections, with the outside world, on the company projects revenue to hit Enforcement, Standards, International Affairs, and Research & Analysis. lookout for others with ideas and up to $18 million. CPAs AND CHARTERED ACCOUNTANTS knowledge. Miller’s latest project is develop- Minimum of 4 to 8 years of recent experience auditing public companies, depending on “We have relationships with ing solar photo cells that will allow the position suppliers even when we don’t need solar power-generating compo- ATTORNEYS to be supplied,” he said. nents to be integrated directly into At least 10 years of progressively responsible experience with a law firm, corporation, more architectural applications, government agency or regulatory body, or combination thereof, related to accounting, instead of adding them to rooftops public auditing or SEC financial reporting matters Staying interested, curious or lawns. Another key ingredient in devel- He is working with university Submit your resume to [email protected] oping product ideas at Duo-Gard is connections to make it happen. or log on to www.pcaobus.org/careers for more details a sense of entrepreneurial fun. The technology isn’t ready, but One activity Miller found to be when it is, Miller said he will seek valuable for his company had very out suppliers that get it and walk little to do with day-to-day opera- away from those that don’t. tions. Some business owners Gary Anglebrandt: (313) 446- The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, accurate and independent audit reports. It is also charged with overseeing the audits of broker-dealer compliance reports under federal securities laws to promote might even view it as frivolous. 1621, [email protected]. investor protection. The PCAOB is an equal opportunity employer dedicated to establishing a diverse workforce. In 2005, he participated in the Twitter: @anglebrandt 20110919-NEWS--0011-NAT-CCI-CD_-- 9/16/2011 10:12 AM Page 1

September 19, 2011 CRAIN’S DETROIT BUSINESS Page 11 Second Stage Extra

Risks and considerations: Cubitt more than anything to make sure Yashinsky, who studies how StageTwo Strategies said the biggest challenge with the we could pay all the vendors,” Cu- consumer, technology, retail and inventory change was cash flow. bitt said. design trends affect future prod- A look at problem-solving “We had to be able to make sure Expert opinion: Susan Yashinsky, ucts and services, said marketing by growing companies. we could bring in the new prod- macrotrend forecaster with the new products online buys time to ucts at the same time we were pay- Waterford Township-based retail sell off existing inventory. Essential Bodywear LLC ing for the old product,” Cubitt consulting firm Sphere Trending, “Ten years ago, you wouldn’t Location: Commerce Township said. “There were a couple months said one way to assist an invento- have had the luxury to sell inven- Description: Direct seller of inti- where we were paying numerous ry transition is to use social me- tory down as you’re flowing new mate apparel vendors, even some we were no dia, which can create a history of product in and exiting the old,” President: Marcia Cubitt Cubitt Charlick longer doing business with.” customer acceptance for new she said. CEO: Carrie Charlick To remove the old product and products and make it easier to — Ellen Mitchell Founded: 2003 “Representatives don’t carry all get reps on board with universal switch over. Employees: 14 full-time-equiva- the products, they carry a fit kit of sizing, and to make sure they had “With the new technology tools lent employees and 350 indepen- samples from size 32A to 44H,” Cu- adequate cash flow, Cubitt and available, you can create buzz for If your company has overcome a dent salespeople bitt said. “Before, every style had a Charlick promoted “last chance” the new product online and start to tough challenge, other growing Revenue: $4 million in 2010; different fit, but now reps can fit a sales for the bras they would soon sell online,” Yashinsky said. “It businesses want to hear about it. $4.5 million projected for 2011 woman for whatever size she’s drop and introduced three new makes it an easier sell to then go to Contact Web Editor Gary Angle- Problem to be solved: When Cu- wearing and know it’s not going to styles. the retailer when you have a histo- brandt at ganglebrandt@crain bitt and Charlick started Essential change based on the style.” “We ran promotions and sales ry of online sales.” .com to share your story. Bodywear LLC in 2003, they sold oth- er companies’ products. The direct sales company enlisted a staff to sell the undergarments across the U.S., but the two soon became con- cerned with the costs associated with selling others’ products. “We were doing well, but we did- n’t have any profit margins,” Cu- bitt said. “There are costs involved with that extra layer of people there, and one of the most impor- tant things necessary with our What’s the business is to have our own pri- vate label.” Essential Bodywear’s sales staff recruits customers to host bra par- ties in their homes, much like Mary Kay or Tupperware parties. Cubitt and Charlick made a pri- connection vate-label deal with a garment manufacturer and began selling bras under the Essential Body- wear name in 2006, but they soon ran into other problems. Because Essential Bodywear of- fered so many different sizes and styles, representatives had to car- between ry dozens of bras to market the product. “Representatives carry samples rather than inventory, but they were still carrying too many bras to handle,” Cubitt said “Bras can be like shoes: You think you’re one 1,14 2 n u r s e s size, but you actually can wear a variety of sizes based on the styles.” Cubitt said because each bra size fit differently depending on the style, the factory they were working with had minimums for each bra produced that were cut- and 21area ting into their profits. They also had to place orders a minimum of six months in advance. “If we had a growth spurt and we sold out of product, which we did, we would have no way to get it until the next order came,” she h spitals? said. “It could take up to six months to get a product back in.” Solution: The two kept their eyes open and in 2010 were able to source a different factory of the Oakland Community College. Yes, OCC. Our nursing program is one of the largest, private-label manufacturer that most highly regarded in the country. Spanning two of our five campuses – Highland was able to meet their own inven- tory minimums and at the same Lakes and Southfield – we’ve graduated 1,142 nurses in the past five years, more than time allowed them to give final or- any other school, college or program in the state. In addition, our working agreements der numbers within 30 to 60 days rather than six to nine months. with 21 hospitals in southeastern Michigan mean we’re providing the region with a “We still need to place orders a few highly trained, vital source of health care professionals. Why place so much emphasis months in advance, but we can play with the numbers and can call on the health of our community? Because at OCC, community is our middle name. and add to an order if we need to,” Cubitt said. “We’re able to keep in- ventory numbers where they be- long and help projected growth.” To reduce the number of prod- ucts and lighten the load on repre- www.oaklandcc.edu sentatives, Cubitt and Charlick in- troduced universal sizing in January, where each size fits ex- actly the same no matter the style. DBpageAD.qxp 9/15/2011 2:13 PM Page 1

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September 19, 2011 CRAIN’S DETROIT BUSINESS Page 13

Profiles Mary Barra Senior vice president of global design, engineering and program management, General Motors Co., Page 13 Linzie Venegas Sales and marketing director, Barra Davis-Blake The Ideal Group, Page 14 Alison Davis-Blake Dean, University of Michigan WOMEN Ross School of Business, Page 14 Stacey Coopes GLENN TRIEST CEO, FordDirect, Page 15 GLENN TRIEST Turkia Awada Mullin TOWATCH Ford CEO, Wayne County Airport Authority, Page 15 Laura Soave Coopes CEO, Fiat brand North America, Chrysler Group LLC, Page 16 Linda Marshall President, OnStar LLC, Page 16 Olga Dazzo Director, Michigan Department of Community Health, Page 17 Marcy Ford McCann Mullin Schlichting (left) and Mosey Executive vice president, Trott & Trott PC, Page 17 20ll Joyce Jenereaux Sixteen President, Detroit Media Partnership, Page 18 who set the Kathleen McCann President, United Road Services Inc., Page 18 standard Judith Whittum-Hudson Professor of immunology and Soave from Whittum-Hudson Marshall microbiology, internal medicine and ophthalmology, Wayne State University School of Medicine, corporate Page 19 Susan Mosey to President, Midtown Detroit Inc., Page 20 academia Nancy Schlichting CEO, Henry Ford Health System, Page 20 Venegas GLENN TRIEST Dazzo Jenereaux Oswald Yolles Julia Oswald Vice president-strategy and insights, Domino’s Inc., Page 21 Barbara Yolles Mary Barra Executive vice president, chief growth officer, Senior vice president of global make sure that we are eliminating McCann North America, Page 21 design, engineering and program the complexity in our system to get management, General Motors Co., the product out with higher quality. Detroit We’re very much maintaining the Reason to watch: As the highest- importance of great design as well.” INFORUM TO HONOR ranking woman at a U.S. automaker, To manage these changes, Barra Barra is leading GM’s re-emergence is coordinating GM’s assets across WOMEN TO WATCH with new designs, including the several continents — which is prov- Sonic and Volt. ing to be her greatest challenge. Inforum and Crain’s Detroit “We make 8 million vehicles a Business will honor this year’s ary Barra, 49, has spent 31 year and each one the customer Women to Watch at Inforum’s years in the automotive gets into, we want them to say that Inner Circle event Dec. 7 at the M industry. In February, GM has the right styling, quality Townsend Hotel in Birmingham. she was promoted to lead GM’s de- and functionality,” she said. The Inner Circle event honors sign and engineering team — over- “That’s why we have to make sure Michigan’s top female executives seeing 30,000 employees with a we are working as one global team by giving them the chance to act as hosts to small groups of women budget of $15 billion. and leveraging the strength of our interested in hearing about their Barra took over the lead role of assets across the world effectively.” careers. Attendees will be able to GM’s product development with Biggest lesson learned in the past participate in these small-group an emphasis on downsizing its COURTESY OF GENERAL MOTORS CO. year: “You have to have the right discussions. platforms and “drastically reduc- Mary Barra, the highest-ranking female executive at General Motors Co., is in team. We should have spirited de- The event runs from 5:30-7:30 ing its capital footprint.” charge of 30,000 employees and a budget of $15 billion. bates. It’s critical to have a diverse p.m. Tickets are $55 for Inforum The goal? Get GM’s platform team with diverse thoughts and ex- members and $65 for footprint down to 14 in 2018 from platforms) in earnest in 2005-2006,” ther streamlining GM’s develop- periences.” nonmembers. 30 in 2010. GM is making this hap- she said. “Now that we’re done ment process, she must also con- If you could take a class on anything, For more information, visit pen by creating global platforms with the initial cycle, we’re focus- tend with design and quality. what would it be? “Golf. My 14-year- www.inforummichigan.org/events and simplifying its development ing on how to get more efficient.” “We’ve demonstrated we have a old son and 12-year-old daughter are /inner-circle-crains-women-watch. process, she said. However, while Barra is busy good vehicle development product learning. I wish I had better skills.” “We started this journey (global reducing redundancies and fur- process,” she said. “Now we want to — Dustin Walsh 20110919-NEWS--0014-NAT-CCI-CD_-- 9/16/2011 10:10 AM Page 1

Page 14 CRAIN’S DETROIT BUSINESS September 19, 2011 Women to Watch

Google has made Linzie Venegas part of a promotional tour because of her success in using Google AdWords.

GLENN TRIEST

Linzie Venegas

Sales and marketing director, In August, Google’s executive The Ideal Group, Detroit chairman, Eric Schmidt, called on Reason to watch: Using new-era Linzie as part of a promotional marketing tools to boost the bottom tour touting examples of compa- line for an old-school manufacturer nies that have had big success us- and construction manager. ing Google AdWords. The Ideal Group’s other busi- inzie Venegas says she nesses, including serving as a gen- thought she’d give Google Ad- eral contractor on large industrial L Words a try six or seven years buildings for General Motors Co. ago and see what happened. What and auto suppliers, and warehous- I’M AN MSU LAW ALUM... happened was dramatic and unex- ing and distributing spare parts pected, particularly for The Ideal for auto manufacturers, don’t lend Group’s Ideal Shield LLC subsidiary, themselves as readily to Google a maker of handrails, guardrails marketing, said Venegas, who is Preparing future lawyers to use and plastic sleeves that fit over the daughter of founder Frank intellect, ambition, and ethics concrete posts in parking lots to Venegas. to solve the world’s problems. protect customers’ cars during mi- Biggest lesson learned in the past www.law.msu.edu nor collisions. year: “My father is my biggest men- Venegas, 31, said every dollar tor. The best lesson that I have spent in online advertising with learned this year from him is that Google generates $18.92, a higher your biggest threat is yourself. rate of return on investment than You can never settle.” she ever imagined when she first If you could take a class on anything, thought she’d give it a try. what would it be? “I’m very market- She now uses 300 key words to ing minded, so I’d continue to take market Ideal Shield, generating classes on how to better market our- about 55 percent of new leads and selves. There’s been a complete par- 25 percent of sales, which totals adigm shift in marketing. How do I 18,000 units a month in bumper get found quickly?” sleeves alone. — Tom Henderson

Alison Davis-Blake

Dean, University of Michigan Carlson School of Management at Ross School of Business, Ann Arbor the University of Minnesota, said Reason to watch: New dean of one China will also play a role in the of the country’s most regarded school’s expansion. She will also business schools. continue to push international in- ternships and study-abroad pro- grams. Mark Davidoff, lison Davis-Blake is We’ll discuss: She also wants to expand entre- Michigan Managing charged with the task of ex- panding the reach of the preneurial efforts at Ross with Partner, A G Historical look at business school beyond U.S. coast- more joint programs. The school Deloitte LLP launched a master’s in entrepre- federal government lines and across The rising federal debt is neurship this fall with the Universi- spending hemispheres. Alice Rivlin, She took over ty of Michigan College of Engineering generating a lot of attention in in a joint program. Senior Fellow in the the role on July G Perspective on the “I’m hoping for a real cam- Washington DC, the media, and Economic Studies 1 with the inten- government debt tion of “making puswide partnership in entrepre- on Main Street, but signifi cant Program at issue (U.S. and the school’s neurship,” she said. Brookings; member of the confusion remains regarding the globally) global footprint Biggest lesson learned in the past Commission on Fiscal more clear and year: “It always pays to do your magnitude of the problem, how G Summary of work Responsibility and Reform defined.” homework, no matter how much (The Simpson Bowles experience you have. In today’s we got here and what we need to of the U.S. Bipartisan “It’s time for Davis-Blake Policy Center Task Commission) us to be more turbulent times, even situations do to fix it. What does all of it Force on the federal visible globally,” she said. “We’re that appear to be ones you are fa- miliar with can be radically al- mean for U.S. businesses? debt Bob Campbell, going to take our action-based learning approach to the next lev- tered by the current economic cli- Vice Chairman and mate.” G The potential impact el.” U.S. State Leader, To begin that outreach, Davis- If you could take a class on any- OCT. 11|Noon – 1 p.m. EST on U.S. businesses Deloitte LLP; Blake, 52, plans to expand the thing, what would it be? History of member Bipartisan Policy school’s executive education in In- great civilizations. To learn more, please visit G Summary of recent Commission task force on dia, where it already has cus- “There’s a lot to learn about how www.crainsdetroit.com/crainsevents U.S. debt ceiling the Federal deficit tomized programs in place with In- society was run that can be applied dian conglomerates The Tata Group to running an organization,” she FREE to Crain’s readers and Mahindra & Mahindra Ltd. said. Davis-Blake, former dean of the — Dustin Walsh 20110919-NEWS--0015-NAT-CCI-CD_-- 9/16/2011 10:03 AM Page 1

September 19, 2011 CRAIN’S DETROIT BUSINESS Page 15 Women to Watch

Turkia Awada Mullin Stacey Coopes

CEO, Wayne County Airport CEO, FordDirect, Dearborn from FordDirect referrals — “With all of the latest technolo- ty of Michigan. Previously, she Authority, Detroit Reason to watch: Responsible for which generate information gies, we are able to provide a lot served as executive vice president Reason to watch: Newly named to growing Ford’s dealership sales about potential customers who more information to dealers so of marketing and technology for run the airport. through an innovative website visit the web- they can tailor their sales ap- the company. referral service and by expanding site. In fact, proach.” Biggest lesson learned in the past urkia Awada Mullin’s hiring services globally. more than Coopes, 41, is working on ex- year: “That in this business you in July as CEO to run the 21 percent of all panding FordDirect’s IT ser- have to stay on top of the latest T day-to-day operations of De- Ford sales stem vices, including inventory man- digital trends. We have to under- tacey Coopes became CEO agement, social media and parts troit Metropolitan Airport generated from a FordDi- stand those technologies so we of FordDirect, a joint ven- rect referral. and service repair programs. some grumbling can pilot dealers with good ad- S ture between Ford Motor Co. “We’re here FordDirect expects to expand from detractors and its franchised dealerships, in vice.” that she didn’t to really drive into new markets globally — May with the task of growing its If you could take a class on any- have any air- the digital ser- Canada, Mexico, Europe, China, presence — both in referrals and thing, what would it be? “Ever since port managing vices of Ford and India — over the next five geography. Coopes third grade, I wanted to go to experience. and Lincoln years, she said. space camp in Alabama.” Neither did More than 275,000 Ford vehi- dealers and help them with sales Coopes earned bachelor’s and her two prede- cles were sold in the U.S. in 2010 and profitability,” she said. master’s degrees from the Universi- — Dustin Walsh cessors, she not- ed, and they did Mullin OK. And anyone paying attention to the airport wouldn’t be surprised she got the job because Metro and the board that oversees it, the Wayne County Airport Authority, is focused on eco- A LOAN WITH nomic development. If there’s one thing Mullin, 43, has plenty of experience with, it’s economic development. She had been Wayne County’s chief development officer since 2009 and assistant county execu- tive since 2005. Her résumé boasts that her tenure includes invest- ment commitments of more than $5.5 billion and 16,000 new jobs for Wayne County in 24 months. Her plans — she won’t talk specifics yet — include making Metro a destination for travelers A CITIZENS BANK LOAN LETS YOU FOCUS ON THE FUTURE ... because the businesses by improving the airport-going ex- perience and making it even more that will succeed tomorrow are the ones that make the right choices today. They are friendly to business travelers. She wants them to come to the airport led by individuals who see opportunity for growth and expansion, and take action with earlier than they normally would, complete confidence. A loan from Citizens Bank will keep you moving forward and to spend money on shops and other amenities that will generate new never wondering, “What could have been?” revenue for Metro. Mullin now oversees more than 600 people and an annual operat- ing budget of about $308 million — Get the loan you deserve now. To make an appointment with a Citizens Banker, call and a $28 million capital project 800-946-2264 or visit CITIZENSBANKING.COM/BUSINESS. debt service deficit triggered by a decline in airline travel. The au- thority has to make up the gap mainly through new revenue rather than new fees on Metro’s tenant airlines. Also atop Mullin’s priority list is one of the key initiatives cham- pioned by her former boss, Wayne County Executive Robert Ficano: the “aerotropolis” eco- nomic development concept for 60,000 acres between Metro and Willow Run Airport in Ypsilanti Township. The plan created a business- friendly regulatory atmosphere — mainly by expediting regulatory processes — in that multi-jurisdic- tional zone aimed at attracting air logistics companies. “(Companies) don’t want gov- ernment to be an obstacle,” she said. Its backers predict the project will create 60,000 new jobs and $10 billion in annual economic im- pact by the time the project is built over 25 years. Biggest lesson learned in the past year: Never pass judgment on peo- ple. You never know what some- one is going through. If you could take a class on any- thing, what would it be? Anthropolo- gy, to better understand where people are coming from. — Bill Shea 20110919-NEWS--0016-NAT-CCI-CD_-- 9/16/2011 10:02 AM Page 1

Page 16 CRAIN’S DETROIT BUSINESS September 19, 2011 Women to Watch

Laura Soave

CEO, Fiat brand North America, life, not only professionally but said. “I need to make these connec- an electric version of the car in the Chrysler Group LLC, Auburn Hills personally,” Soave, 39, said in an tions happen one day at a time, one next 18 months. Reason to watch: Soave is leading email. “My parents were born in customer at a time, and this is how “Cars, trains and airplanes,” I need to make the Italian brand’s charge to the Italy. … I know first hand the pas- I am building the brand.” she said. “There are definitely a lot “ North American market and sion that the Fiat 500 inspired in a She’s achieving success. Fiat re- of hotels and frequent-flyer miles sure integrating the European compact whole generation of Italians, like ported earlier this month that its in my future.” cars into American culture. my parents, who were sitting in August sales nearly matched those Biggest lesson learned in the past people the front row during the reveal. It of its primary competitor, BMW’s year: “Even at the peak of your work n the floor of the 2010 Los An- was a special moment.” Mini models. The Fiat 500 went on load, make time for your loved fall in geles Auto Show, Laura Since that moment, Soave, a for- sale in March. ones. I am still working on that.” love with O Soave stepped out of a 1957 mer marketing executive at Volkswa- Last month, Soave unveiled the If you could take a class on any- Fiat Cinquecento to unveil the Fiat gen, has been traveling across the Fiat 500 by Gucci model — an thing, what would it be? “I would this 500 compact car to the U.S. It was U.S. promoting Fiat’s reintroduc- homage to its Italian heritage — at love to learn to fly a plane. With all also her unveiling as the new head tion into the American auto market. New York Fashion Week. the time I spend in airports, I could brand. of the brand for North America. “I need to make sure people fall Her travels will continue as Fiat take the crew line at security and ” “(That was) probably one of the in love with this brand, just as is also launching the high-perfor- save some time.” Laura Soave, Fiat most emotional moments of my they have done in Europe,” she mance Fiat 500 Abarth models and — Dustin Walsh

Linda Marshall

President, OnStar LLC, Detroit Reason to watch: Leads the General Motors Co. subsidiary from a GM-only option to an aftermarket option for all makes and models.

inda Marshall spent decades in executive-level positions L streamlining call centers and customer service at Sprint Nextel and Verizon Wireless. At OnStar, where she began in 2010 as execu- tive director of global business strategy and de- velopment be- fore becoming CEO in Febru- ary, she aims to continue a cus- Marshall tomer-focused strategy as the com- pany expands services. “We have 6 million customers, and no matter what we do we will never denigrate the service we’re offering them,” she said. “My chal- lenge is to take 15 years of some- thing going great and not ruin it while trying something new.” OnStar launched its aftermarket OnStar FMV (For My Vehicle) sys- tem in retail stores across the country earlier this summer. The company launched in Au- gust its OnStar Family Link ser- vice, which allows users to track the location of their OnStar-en- abled vehicles. OnStar files five patent applica- tions a month and will continue to add new services, Marshall, 54, said. “There’s new technology being developed every day, and for the customer it’s about choice,” she said. “That’s the way to run this business.” Marshall said the company will invest in research and develop- ment, assessing the impact of the Smartgrid and the impact of broad- band in the automotive sector. Biggest lesson learned in the past year: “How strong the OnStar brand is. Even though I’ve been an OnStar customer for more many years, only now can I really appre- ciate the strong brand the team has built over the last 15 years.” If you could take a class on any- thing, what would it be? “It is not re- ally a typical class, but if I could I would like to join the Peace Corps for some time and do social work in other regions of the world that need support.” — Dustin Walsh 20110919-NEWS--0017-NAT-CCI-CD_-- 9/16/2011 9:58 AM Page 1

September 19, 2011 CRAIN’S DETROIT BUSINESS Page 17 Women to Watch Olga Dazzo Marcy Ford

Director, Michigan Department Executive vice president, Biggest lesson learned in the past page of a newspaper any day. of Community Health, Lansing Trott & Trott PC, Farmington Hills year: Consider the elevated public If you could take a class on any- Reason to watch: Key player in Reason to watch: Leading scrutiny and national media atten- thing, what would it be? Housebreak- health care reform. national trade association. tion in recent months to mortgages ing or training your puppy, to help and the residential real estate in- the family cope with their Vizsla, ajor health care changes oing even one step beyond dustry in professional and person- Spencer. are coming to Michigan what the law requires can al decisions. A longer-term goal is learning M and getting Olga Daz- G yield dividends for clients Conduct yourself as if those de- horticulture. zo’s attention. and go a long way to avoiding pub- cisions could land on the front — Chad Halcom As the state moves to imple- lic scrutiny in the mortgage fore- ment national closure industry, Marcy Ford has health care re- found. form, Dazzo’s Ford, 49, manages the bankrupt- department cy department representing took the lead lenders as creditors at real estate on early devel- lender law firm Trott & Trott PC and opment of a becomes president next year of statewide USFN, the national trade associa- health insur- tion of mortgage banking law ance exchange firms and trustee companies for- for individuals GLENN TRIEST Dazzo merly known as the U.S. Foreclo- Next year, Marcy Ford becomes and businesses sure Network. president of USFN, the national trade that would begin in 2014. The ex- Recently, USFN has been assist- association of mortgage banking law change is now further progress- ing members and their client mort- firms and trustee companies.       ing under management of the gage lenders in implementing re-     Michigan Department of Licensing quirements of settlement errors, and stress greater commu-           and Regulatory Affairs. agreements with the federal Office nication with borrowers. The 2010 national reforms also of the Comptroller of the Currency, Earlier this summer, Trott also “Your operation is standing head and shoulders above all operators in have Dazzo, 61, planning for about which entered into an enforce- joined a new executive committee the Detroit area” – Aviation Analyst for Fortune 500 Companies 500,000 additional people to come ment action agreement with banks with Trott partners Jeanne Kivi onto Medicaid rolls. The Medicaid and mortgage lenders earlier this and Jeffrey Raff, who together Experience, Safety and Service you can Count on. expansion begins in 2014, with year. with law firm president and man- state financial participation to be- Locally Based. Serving All Detroit Area Airports Since 2003 Those agreements cover such aging partner David Trott make up gin in 2017. practices as dual-tracking (the its four-member board of direc- The scope of putting in place practice of proceeding with fore- tors. Trott & Trott is the largest the national reforms is a chal- closure and loan modification at provider of mortgage default ser- HANTZ AIR lenge that’s exciting, not daunt- the same time), require lenders to vices to lenders in Michigan and ing, said Dazzo, the first woman hire an independent firm to re- among the 10 largest such firms in ͹͵ͶǦͺͻ͵Ǧ͸͸ͳͳ Gov. Rick Snyder named to his view foreclosures in 2009-2010 for the nation. Ǥ  Ǥ Cabinet. “We have each of our initia- tives identified, and we have a planning process for each, and we’re just getting it done one at a time.” Michigan is also one of 15 states selected by the federal govern- Make an Executive Decision. ment to develop new ways to pro- vide services and support to indi- viduals who are eligible for both Medicare and Medicaid. The state Choose Sommers Schwartz will integrate Medicare and Med- icaid funds to contract for the de- To Protect your career livery of services for the more than 200,000 “dual eligibles” in Michigan who now navigate two and your Family programs with different rules. “The first priority is to quality and access and making sure that the services are well-coordinat- Decisions… decisions. ed,” Dazzo said. “We want to make sure that this population is Choosing the right law firm to handle your very well taken care of, that they employment law dispute can be difficult. Fortunately, have outstanding services and we at Sommers Schwartz can make your choice much easier. that we can maximize the ser- Why? Simple. We offer you our vast experience with both vices by managing the dollars better.” business and individual cases, handle a diverse clientele, Community Health has been lis- resolve cases quickly, customize fee arrangements and offer tening to stakeholders in develop- you the clout of a big law firm combined with highly ing the integrated care plan and personalized service. expects around the end of the year to submit its final plan to the feder- So make an executive decision. Choose Sommers Schwartz al Centers for Medicare and Medicaid Services. for all your employment law needs. Dazzo also places a priority on wellness and improving the over- all health of Michigan residents, with obesity and infant mortality two key areas upon which she and the administration plan to focus. Biggest lesson learned in the past year: How government works from the inside. How government and stakeholder communities come to- gether to create policy. yhd/s ^WZd/KE /^Whd^ ͻ /^Z/D/Ed/KE ͻ ,Z^^DEd ͻ KsZd/D >/D^ ͻ t,/^d>ͳ>KtZ If you could take a class on any- thing, what would it be? Technolo- www.sommerspc.com | 248-415-2234 | 1-888-884-3878 | 2000 Town Center, Suite 900, Southfield, MI 48075 gy. How to apply it to business, health care and people, and what lies ahead. — Amy Lane 20110919-NEWS--0018-NAT-CCI-CD_-- 9/16/2011 9:56 AM Page 1

Page 18 CRAIN’S DETROIT BUSINESS September 19, 2011 Women to Watch

Kathleen McCann Joyce Jenereaux

President, United Road Services Inc., Romulus President, Detroit Media Partnership, Detroit Reason to watch: Made the leap to president. Reason to watch: Has the job of returning the Detroit dailies to profitability. athleen McCann has spent her life managing businesses that use lots of n June, Joyce Jenereaux eagerly stepped K trucks. into one of the toughest executive jobs in As the new president of Romulus-based I Detroit: president of the Detroit Media vehicle transporter United Road Services Partnership, which oversees the business op- Inc., she’s overseeing the $50 million acqui- erations — advertising, sition of 200 new trucks to bolster the cur- printing and distribution rent fleet of 800. — of the Detroit Free Press That’s just part of her new job duties, and The Detroit News. which include expanding into new markets Daily newspapers have and buying up firms that will help United been struggling for years Road grow. as display and classified “We are expanding into different territo- dollars have migrated on- ries in the U.S. and Canada,” she said. line to sites such as “We’re always in conversations about po- www.craigslist.com and tential transactions.” consumers turn to the In- United Road ships vehicles for dealers, ternet for their news. Jenereaux automakers, eBay and individuals nation- It’s Jenereaux’s job to get the partnership, wide. Its 2009 revenue was $198 million, and which has been losing money for years as it has 300 employees locally and about 1,000 the two newspapers bleed circulation and ad overall. COURTESY OF UNITED ROAD SERVICES INC. revenue, into the black. McCann, 51, had been senior vice presi- With President Kathleen McCann in the driver’s seat, United Road Services Inc. soon will have “It definitely makes it more appealing be- dent of Detroit-based Soave Enterprises Inc., 1,000 trucks rolling. cause the challenges are quite significant,” which is heavily involved in vehicle haul- she said. “I like challenges, and I really like ing and other transportation services. She ki, and she learned that he was in the process McCann, a CPA, is involved in community to solve problems and make decisions.” began working with Soave in 1990 as vice of stepping away from the day-to-day busi- organizations and serves on the boards of She started at the partnership as a finan- president and controller of waste opera- ness to focus on strategic initiatives. HomeBancorp Inc., Inland Pipe Rehabilitation cial analyst in 1990 and rose to become exec- tions for its City Management Corp. “He was interested in moving on and in LLC, Inland Industrial Services LLC and Detroit’s utive vice president. She was the No. 2 per- Switching to a new company wasn’t diffi- the midst of looking for a successor,” she Sacred Heart Major Seminary, among others. son at the partnership, but one whose name cult for McCann. said. “The company and environment felt Biggest lesson learned in the past year: was rarely mentioned outside of the inner “Most of the Soave portfolio has mean- very familiar and welcoming to me, so I “Trust your gut.” sanctum of its offices. ingful trucking or logistics components,” made the leap.” If you could take a class on anything, what Her promotion to the top job caught indus- she said. She’s dealing with some of the same would it be? “A class in Western philosophy try watchers by surprise after former presi- She’d crossed paths several times over the clients, too, including 15 OEMs. Ford Motor would hold great appeal.” years with United Road CEO Michael Wysoc- Co. is the largest United Road customer. — Bill Shea See Next Page RECESSION THIS.

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September 19, 2011 CRAIN’S DETROIT BUSINESS Page 19 Women to Watch

From Previous Page dent, Susie Ellwood, was named Judith Whittum-Hudson executive vice president and gen- eral manager of USA Today. Professor of immunology and Jenereaux, 58, leapt right into ac- microbiology, internal medicine and tion with the understanding that ophthalmology, Wayne State Family is there are no quick fixes to a strug- University School of Medicine, “ gling industry in an economically Detroit what matters depressed market that’s only just Reason to watch: Filed a patent starting to see rays of light. for a chlamydia vaccine in the long “We’re still challenged finan- cially, but we’re seeing less of a de- term, in cline in our print advertising rev- udith Whittum-Hudson, a enue, which is very encouraging to professor of immunology and spite of some J microbiology, internal medi- me,” she said. Among the plans under way cine and ophthalmology at Wayne professional now to further bolster readership State University School of Medicine, and increase revenue are a new didn’t realize in 1969 that four success. smartphone app and the recent decades later she would be still re- ” launch of an annual best-of-Detroit searching chlamydia, the most Judith Whittum-Hudson, book called Editor’s Choice from common sexually transmitted dis- Wayne State University the partnership’s custom publish- ease in the U.S. School of Medicine ing arm. But Whittum-Hudson’s persis- Other initiatives include an on- tence has paid off as earlier this line estate planning manager web- year she filed a patent for a vac- site and the “Deal Chicken” (email cine for chlamydia on behalf of COURTESY OF WAYNE STATE UNIVERSITY SCHOOL OF MEDICINE alerts for local discounts) that WSU. launched July 12. Whittum-Hudson, 64, said re- “It will be easier to get FDA ap- said. Biggest lesson learned in the past Biggest lesson learned in the past cent breakthroughs give her proval for human trials if we test Worldwide, according to the year: “A reaffirmation that family year: There is no finishing line. hope that there could be a vac- it on larger animals first,” said World Health Organization, up to 25 is what matters in the long term You have to keep learning every cine developed for humans in 10 Whittum-Hudson. percent of people infected become in spite of some professional suc- day. And you have to keep looking to 15 years, though human clini- The Centers for Disease Control blind from chlamydia trachoma- cess. I knew this, but with the for opportunities for you company cal trials are three to four years and Prevention estimate more than tis bacteria. loss of several family members every day. If you finish a major ini- away. 2.8 million annual infections oc- Wayne State also has signed a this year, it was an important re- tiative and think you can relax and A vaccine for cattle, sheep and cur, with as many as 85 percent of licensing agreement with a minder.” enjoy the moment, you’ll soon find some poultry could be developed cases asymptomatic. Michigan-based startup company If you could take a class on any- yourself in second place. sooner, potentially saving the Besides preventing reinfec- to seek venture funding for more thing, what would it be? “There are If you could take a class on any- livestock industry millions of dol- tions, which the current treat- expensive large-animal studies, too many to count. Outside of sci- thing, what would it be? Improv/act- lars and preventing workers from ment of antibiotics cannot do, a Whittum-Hudson said. The name ence options, I would begin mas- ing. contracting the disease from in- vaccine could help prevent blind- of the company was not avail- ter gardening classes.” — Bill Shea fected animals, she said. ness in humans, Whittum-Hudson able. — Jay Greene 20110919-NEWS--0020-NAT-CCI-CD_-- 9/16/2011 9:55 AM Page 1

Page 20 CRAIN’S DETROIT BUSINESS September 19, 2011 Women to Watch 800-292-3831 Nancy Schlichting indiantrails.com CEO, Henry Ford Health System, Detroit Reason to watch: Helping to lead the Midtown resurgence and made a $2 million donation to the HFHS Envision capital campaign. Chairs ONE HU G ND IN R T E the Detroit Regional Chamber’s 2012 A D R Y B E Mackinac Policy Conference and

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S then will become board chair. C 100 ost people know Nancy Schlichting as a busy ex- M ecutive who is deeply in- volved in the community. But starting this year, Schlicht- ing will be busier than usual. In addition to her day job of GLENN TRIEST overseeing a $4 billion nonprofit Susan Mosey (left) and Nancy Schlichting have very different day jobs but are health care company, Schlichting, united in efforts to build up Detroit’s Midtown neighborhood. 56, serves as a director on 12 boards, including four new ones Susan Mosey this year: the American Hospital As- sociation, the Federal Bank of Chica- go Board–Detroit branch, the Down- President, Midtown Detroit Inc., herding $22 million in loans, pro- Comfort and town Detroit Partnership and United Detroit gram-related investments from na- Way of Southeastern Michigan. Reason to watch: Leading the tional foundations and grants Schlichting also was selected as boom in Midtown. from New York-based Living Cities, a collaborative of 22 national foun- t$IBSUFST chair of the Detroit Regional Cham- Luxury ber’s Mackinac Policy Conference in s president of Midtown De- dations and financial institutions. 2012 and then will become board troit Inc., Susan Mosey is The funding is supporting a com- t5PVST chair. A central to most everything plementary strategy to the 15-by-15 happening in an area of Detroit effort that includes repopulating, t4IVUUMFT “Health care is not typically 00 viewed as central to the chamber that’s attracting heavy attention creating more walkability, support- world as other businesses are, but and investment. ing local startups and better educa- $100 OFF t$POWFOUJPO4FSWJDFT SAVE medicine and education are very Mosey, 56, joined Midtown De- tion options, securing more jobs core to urban renewal and (CEO troit’s predecessor, the University and sparking mixed-use and mixed- t$PSQPSBUF&WFOUT Sandy) “Chip” Baruah is very en- Cultural Center Association, 24 years income real estate development. Contact Indian Trails for details. Must use this ergized about health care,” ago as community development di- Mosey and Midtown also oversee promotional code at time of booking: 2011CDB-SEP t4DIFEVMFE4FSWJDF Schlichting said. rector before becoming executive the Art X Detroit program for Kresge, As founding member of the Mid- director three years later. She’s which showcases the foundation’s town Partnership, Schlichting said led Midtown Detroit’s work on local art fellows, and administer the parks, predevelopment loans and Colin Hubbell Memorial Fund, while she is happy that Henry Ford Health financing for The Inn on Ferry Street continuing their core work of com- System, Detroit Medical Center and and other real estate developments munity revitalization, which in- Wayne State University are working there for years. cludes transit-oriented development together to encourage employees More recently, she and Midtown for the Partnership, to move downtown. Detroit assumed responsibility for the Detroit Economic Growth Corp. and One recent Midtown project has many of the strategies developed other collaborators, in advance of helped to increase the amount of by the Hudson-Webber Foundation, the Woodward rail project. goods and services purchased with Kresge Foundation and anchor em- Biggest lesson learned in the past downtown suppliers, Schlichting ployers in the neighborhood to year: You can accomplish a lot said. bring 15,000 young people to live, more by collaborating with a “We are learning about compa- work and play downtown by 2015. broad set of partners than work- nies we haven’t known about be- Under her direction, Midtown is ing independently. fore. We are partnering with a lo- coordinating joint safety, purchas- If you could take a class on anything, cal bakery and buying a lot more ing and employee recruitment what would it be? Management, given breads. Before, we outsourced that strategies among the area’s anchor how fast Midtown Detroit is grow- to our food management compa- employers: Detroit Medical Center, ing and the fact that it also operates ny,” she said. Henry Ford Health System and Wayne a small hotel, The Inn on Ferry Another major decision State University. Street. Schlichting made earlier this year Midtown Detroit is also shep- — Sherri Welch was to donate $2 million as part of Henry Ford’s $250 million Envi- sion capital campaign. “I have made contributions over the years, but I started to think about legacy impact,” she said. Schlichting said she was sur- prised when two physician execu- tives suggested that a section of Congratulations Consultative the newly planned Innovation In- Professional life insurance counseling stitute building on the Henry Ford to the Outstanding in a non-salesy environment campus be renamed the Schlicht- ing Education Commons. Business Women Biggest lesson learned in the past We work with our clients and their advisors to: year: “The power of collaboration in Michigan! has been reinforced this year with Reduce estate and income tax Enhance fixed income the Midtown Partnership. After we yields Solve family and business issues Improve announced it, other companies like existing life insurance policies. Blue Cross Blue Shield of Michigan, DTE Energy Co. and Quicken Loans stepped Kudos to Trott & Trott up and offered incentives of their own to live in Midtown.” Partner & EVP Marcy Ford If you could take a class on any- thing, what would it be? “I am jack of all trades and a master of none. I would like to take classes in cook- ing, violin, art, and I need a few BIRMINGHAM, MICHIGAN 248.731.9500 more golf lessons.” WWW.SCHECHTERWEALTH.COM — Jay Greene 20110919-NEWS--0021-NAT-CCI-CD_-- 9/16/2011 9:54 AM Page 1

September 19, 2011 CRAIN’S DETROIT BUSINESS Page 21

Women to Watch DISCUSSION TO TACKLE AUTOMOTIVE JOBS Barbara Yolles Julia Oswald What is Michigan doing to remain attractive to its signature industry? Executive vice president, chief client: It handles Chevy and Cadil- Vice president for strategy and of 14.2 percent. Domino’s fin- growth officer, McCann North lac in 60 countries that include lu- insights, Domino’s Inc., Ann Arbor ished 2010 up 9.9 percent. That’s the question guiding a America, Birmingham crative emerging markets such as But that kind of turnaround policy discussion planned by Reason to watch: Helped signif- Crain’s Michigan Business and China, India and Latin America. It prompted Domino’s to under- Reason to watch: Promoted in May icantly revamp company offerings. Crain’s Detroit Business. to oversee McCann’s companywide also handles GM’s corporate work stand why it was having such Crain’s is hosting a practical business expansion. and retail advertising, such as em- hen Julia Oswald joined success. “(The campaign) cap- session titled “Can Michigan ployee discounts, along with Sirius Ann Arbor-based Domi- tured a cultural need for trans- grow auto jobs?” etro Detroit’s advertising XM satellite radio and Saab. W no’s Inc. as vice president parency, and consumers wel- Planned in partnership with industry has roiled with “This office in particular has for strategy and insights in No- comed that,” Oswald said. “What the Detroit Regional Chamber, M change, especially client deep roots in automotive,” she vember 2009, she was given the we really improved was our abili- Automotive News and the departures for other agencies that said. “During the challenging last task of building ty to assess that launch.” Original Equipment Suppliers are fueling massive job losses few years it came out strong with a its research She also played an integral role Association, the discussion will Relatively, diverse client base.” team and iden- in a revamp of the company’s take place from 7:30-10 a.m. New McCann clients in the past tifying what chicken offering, which launched Oct. 4 at The Henry hotel in but not com- Dearborn. pletely, un- year include Batavia, Ill.-based the next big in February. It was the first big in- The title sponsor is Blue discount grocery giant Aldi Inc. and change would novation from an insights per- scathed was the Cross Blue Shield of Michigan. Birmingham of- The Colonial Williamsburg be for the pizza spective through Oswald’s team. (Her department has gone from Topics also include what other fice of McCann Foundation. It also has Travel Michi- chain. But Os- one full-time person and a consul- regions are offering in Worldgroup that gan’s “Pure Michigan” work. wald joined just economic development tant to a team of six and counting.) is home to sever- Biggest lesson learned in the past as Domino’s incentives to lure OEMs and The company refreshed its al specialized year: Life should be lived to the was about to suppliers. launch, ar- Oswald chicken menu and launched a na- agencies and is fullest. I learned this from my hus- Speakers include Sandy guably, its riskiest campaign ever. tional ad campaign, the first fo- General Motors band, who recently passed away Baruah, president of the Yolles A month after she arrived, the cused on chicken since 2002. Co.’s largest from cancer. Despite being told he Detroit Regional Chamber; company broke its bold “Pizza One challenge the company global advertising agency. had terminal cancer, he taught me Peter Brown, publisher and Turnaround” marketing blitz, faces is beating the growth it ex- editorial director of Automotive In May, McCann Worldgroup life is about staying focused, hav- wherein Domino’s admitted its perienced in 2010. News; Micki Maynard, senior tapped Barbara Yolles, 44, to or- ing goals, accomplishing them one pizza did not taste good and refor- “We have some great ideas editor of Changing Gears; and at a time, and living. chestrate its companywide busi- mulated its 49-year-old recipe. Al- moving forward. We feel confi- Neil De Koker, president and If you could take a class on any sub- ness expansion as its chief growth though much of the research for dent about what we have under CEO of the Original Equipment ject, what would it be? I would take a officer. She had been brought in the turnaround was conducted our belts,” she said. Suppliers Association. last year as chief marketing officer class on the impact that technolo- before she arrived, Oswald, 46, Biggest lesson learned in the past Tickets are $40 each or $35 to lead the office’s diversification gy has on human behavior. I’m fas- was able to play a significant role. year: You can change a brand’s each for groups of 10 or more efforts. cinated how technology and the when purchased in advance; In the first full quarter the equity in a short amount of time $50 at the door. For more She’s based in Birmingham but digital expansion (have) changed campaign was active, Domino’s — amazing! oversees McCann Worldgroup’s the way people consume informa- information, visit posted a 14.3 percent jump in If you could take a class on any www.crainsdetroit.com/events. five offices, including New York tion, make purchase decisions and same-store sales — a record for one subject, what would it be? Lin- City and Los Angeles. lead fuller lives. the fast-food industry, beating guistics. GM remains McCann’s largest — Bill Shea the highest gain, by McDonald’s, — Bill Shea

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Page 22 CRAIN’S DETROIT BUSINESS September 19, 2011

PEOPLE IN THE SPOTLIGHT The Michigan Business and Professional Association and the Michigan Food and Beverage Association, both headquartered in Warren, have named Gary Marcicano COO. Marcicano, 52, had been general manager and COO of Long Family Auto Center LLC in Warren. He assumes duties formerly held by Marcicano Jennifer Kluge, who is now president and CEO. Marcicano earned a bachelor’s degree in business from Wayne State University. The MBPA and MFBA are trade associations that serve more than 20,000 members that employ more than 160,000 across Michigan. FINANCE U.S. News & World Report Wyatt Roderick to vice president, health care solutions group, Jones Lang LaSalle, Detroit, from director of facilities, Group Health Cooperative, ranked four McLaren hospitals Seattle, Wash. Susan Pelto to chief compliance offi- cer, Shore Financial Services Inc., Birmingham, from regulatory compli- among America’s best. ance officer, Quicken Loans Inc., De- troit. Also: Kathy Welty to chief risk of- (Of course, they’re confi rming what we already know.) ficer, from COO. GOVERNMENT Zenna Elhasan to magistrate and McLaren Health Care proudly announces that U.S. News & World Report has just ranked four probation direc- tor, 20th District of our hospitals among America’s best.* Nearly 5,000 hospitals were considered in 16 adult Court, Dearborn Heights, from specialties and 10 pediatric specialties to set apart the best of the best. This honor says a lot partner, Allen Brothers Attor- neys & Coun- about our hospitals, and more important, it says a lot about the care we give our patients. selors PLLC, De- troit. LAPEER REGIONAL MEDICAL CENTER Elhasan MARKETING Kristin Hopper to vice president, asso- McLAREN REGIONAL MEDICAL CENTER ciate media director, W.B. Doner & Co., Southfield, from associate media MOUNT CLEMENS REGIONAL MEDICAL CENTER director. Also: Bridget Lynn to associ- ate media director, from media super- visor; Rebecca Mires to associate me- POH REGIONAL MEDICAL CENTER dia director, from group media supervisor; and Justin St. George to manager of direct response buying, from buying supervisor. Brandy Sereno to vice president, cre- sm ative services, The Quell Group Inc., Better doctors. Better care. Troy, from sole proprietor, Impresa Creative Group LLC, Bloomfield Hills. NONPROFITS Rod Haneline to chief programs and services officer, Leader Dogs for the Blind, Rochester Hills, from COO. Also: Harold Abraham to chief innova- mclaren.org tion officer, from director of program services; Lisa Kopec to chief canine development officer, from director of canine development; and Michael Benghiat to chief marketing and cor- porate relations officer, from director of marketing and communications, Jewish Federation of Metropolitan Detroit, Bloomfield Hills. *Ranked by U.S. News & World Report’s “Best Regional Hospitals in Detroit 2011” Denise Brogan-Kator to executive di- rector, Equality Michigan, Detroit, from interim executive director. REAL ESTATE Melissa Traver to controller, Dart Appraisal.com Inc., Troy, from con- troller, Sterling Management Inc., Crain’s 2012 Book of Lists goes Sterling Heights. statewide! SERVICES AD CLOSE: Oct. 28 • ISSUE DATE: Dec. 26 Jennifer Calnen to senior project man- For exclusive ad placement next to your industry or client lists, contact Marla Wise today at 313-446-6032 or email [email protected] ager, GZA GeoEnvironmental Inc., Livonia, from project manager. 20110919-NEWS--0023-NAT-CCI-CD_-- 9/16/2011 9:50 AM Page 1

September 19, 2011 CRAIN’S DETROIT BUSINESS Page 23

BUSINESS DIARY UPCOMING CONTRACTS NAME CHANGES made available through Meijer stores in Michigan, Ohio, Indiana, Illinois Azure Dynamics Corp., Oak Park, a de- Resource Technology Corp., Troy, a and Kentucky. Website: www.tech PARTNER EVENTS veloper and producer of hybrid elec- recruiting and training firm, changed townwsu.org. tric and electric components and pow- its name to Brightwing. ertrain systems for light- and Oakland County Film, Pontiac, an- Hutchinson & Associates PC, Detroit, nounced the release of the 2011-2012 Crain’s partners with a variety of organizations medium-duty commercial vehicles, a trial defense litigation firm, an- received an award from the Michigan Film Production Guide, a U.S. De- nounced a new partner, Tara Can- on events and special subscription offers partment of Energy, Washington D.C., resource for motion picture and tele- natella, and that it will be changing its to develop a traction system for future vision producers seeking to hire for their members. Please visit their Web sites below. name to Hutchinson Cannatella PC. Azure products. Azure will receive Michigan-based behind-the-scenes tal- $5.4 million over four years to support Flame Heating Cooling and Electrical, ent and equipment. Website: www. the program development and expects Warren, announced the company will oakgov.com/film. Schoolcraft College Venture Forward taking the new traction inverter to be com- offer plumbing services, changing its applications for classes starting in January name to Flame Heating Cooling NEW SERVICES mercially available in early 2016. Venture Forward is an intensive, 10-week program General Dynamics Land Systems Inc., Plumbing and Electrical. Buckfire & Buckfire PC, Southfield, a Sterling Heights, has been awarded car accident law firm, now offers an designed for owners, CEOs and top management team two contracts from the U.S. Army NEW PRODUCTS Android app for accident and injury members of businesses that have sales of at least TACOM Lifecycle Management Com- ImageSoft Inc., Southfield, a technolo- victims. An iPhone version of the app $750,000 a year with a minimum of 9 employees and mand, Warren, on behalf of the Royal gy company, introduced TrueCertify, is available. Website: www. Saudi Land Forces for the Kingdom of TrueFiling and iJustice eArraign- buckfirelaw.com. will focus on issues most important to business health Saudi Arabia’s tank program. ment, three new technology tools to Esys Corp., Auburn Hills, an automa- and growth. The class features materials from the help improve the efficiency of court tion and software provider for manu- nationally recognized FastTrac® Growth Venture program MOVES processes and to aid law enforcement facturers, launched AutoW8t, its proven though use with thousands of businesses. NITS Solutions Inc., formerly NITS in expediting justice. Website: patent-pending technology for dis- Staffing Inc., an information-technolo- www.imagesoftinc.com. pensing, cutting and robotic applica- Call (734) 462-4438 to apply for Venture Forward. gy, market research and survey and Federal-Mogul Corp., Southfield, has tion of Two Harbors, Minn.-based 3M staffing firm, from Novi to 31555 W. 14 developed CarboGlide, a new piston Co.’s new adhesive wheel weight prod- Mile Road, Suite 206, Farmington ring coating that delivers a direct im- uct. Website: www.esyscorp.com. Meet the Buyers: A Procurement Matchmaking Health Alliance Plan of Michigan, De- Hills. Telephone: (248) 231-2267. Web- provement in fuel economy and CO2 Event. Meet with buyers from federal, state, and local site: www.nitssolutions.com. emissions by reducing ring friction. troit, now allows members who travel Pepper Hamilton LLP, a law firm, Website: www.federalmogul.com. more than 100 miles from Detroit and Governments. This half-day program is designed to moved from Detroit to 4000 Town Cen- Detroit-based ArtJen Complexus USA need emergency medical care to make help small businesses begin or expand their business a phone call to find the nearest med- ter, Suite 1800, Southfield. Telephone: LLC, a Wayne State University spinoff, with government agencies. Meet buyers, understand (248) 359-7300. Website: www. announced the availability of Mirafit, ical provider. The service is available pepperlaw.com. a dietary supplement, that will now be at no extra charge to all policyholders. buying requirements and how to get into the buying Website: www.hap.org. system. Buyers Invited: I GET IT, the online self-paced training for engineers from Tata Technologies Wayne, Oakland, Macomb, Washtenaw, and Livingston Inc., Novi, announced that The Funda- Counties • U.S. General Services Administration (GSA) mentals of GD&T is now available in its portfolio of online training. Web- • Wayne County Airport Authority • Michigan Dept. of site: www.myigetit.com. Mgmt. & Budget • Michigan Dept. of Transportation O’Keefe & Associates Consulting LLC, •Selfridge Air National Guard Base • Cities of Troy, Bloomfield Hills, announced the formation of its public services con- Southfield, and Farmington Hills • U.S. Army Corps of sulting group to provide specialized fi- Engineers •Defense Logistics Agency • DLA Land & nancial services to municipalities, Maritime/Columbus • U.S. Department of Veterans school districts and other public-sec- tor entities in fiscal distress. Tele- Affairs •TACOM phone: (248) 593-4810. Website: www. Nov. 17 • 8 a.m. – 1 p.m. • Schoolcraft College okeefeandassociates.com. $25 per person. Registration required: Call The University of Michigan Medical School, Ann Arbor, launched (734) 462-4438, or email [email protected] M.D.Stat+, a free smart phone applica- tion designed for prospective medical school students to check their admis- Top of Troy: Troy’s Women of Infl uence. Presented by sion status. Website: www.umms. the Troy Chamber Women’s Business Forum. Sponsor: med.umich.edu/mdstat. Health Alliance Plan. Meet four area female business Waste & Recycling News, Detroit, a Crain Communications Inc. publica- leaders for breakfast and panel a discussion. tion, premiered Curbside Live, a MODERATOR: Clare Pfeiffer Ramsey, Regional Editor, weekly video newscast hosted by Metro Detroit, Patch.com. PANELISTS: Rumia Ambrose- WRN’s reporters and editors. Website: www.wasterecyclingnews.com/curb Burbank, President, Vendor Managed Solutions; Linda sidelive.html. Orlans, Esq., President and CEO, Orlans Associates STARTUPS and eTitle; Mary Petrovich, Senior Advisor, The Carlyle Group; and Jamie Spriet, Vice President of Business A Dime and a Penny Foundation, a nonprofit that helps people heal after Development, Health Alliance Plan tragedy, at 2518 Pontiac Drive, Sylvan Sept. 27 • 8 - 9:30 a.m. Lake. Website: www.dimeandpenny. org. Bank of America Merrill Lynch Headquarters, Troy Lorr Group Inc., dba Spa Agio, at 444 S. $15 Troy Chamber members/$20 Non-members Main St., Plymouth. Telephone: (734) (cancel by 9/20 for refund) 207-5200. Website: www.spa-agio.com. Call 248-641-8151, e-mail: theteam@troychamber. Yogurt Palooza Inc., a self-serve yo- gurt store, at 416 S. Main St., Ply- com or visit www.troychamber.com/cal mouth. Telephone: (734) 667-3681. Web- site: www.yogurt-palooza.com. FULL SERVICE ASSEMBLY Caregivers Professional Resources MSED 18th Annual Awards Gala LLC, a new business network to help people in difficult life circumstances Honoring: Sandra E. Pierce, Charter One, Michigan TOOLING SYSTEMS get the help they need, at 19455 Mack with the 2011 MSED Executive Leadership Award Ave., Grosse Pointe Woods. CPR is and Scott Monty, Ford Motor Company with the 2011 also intended to help businesses spe- cializing in caregiving services to link MSED Trailblazer Award and the 2011 MSED Platinum with each other. Telephone: (877) 367- Award Recipients – Nominations for these awards are CONTINGENT WORKFORCE 3671 Website: www.cprmich.com. open through Sept. 23. The MSED Annual Awards SERVICES Gala is a celebration of those whose creative use of DIARY GUIDELINES marketing and sales tools brings recognition to the Send news releases for Business importance of Michigan in supporting the role of the Diary to Departments, Crain’s U.S. as a global economic power…while fostering the Detroit Business, 1155 Gratiot Ave., Detroit, MI 48207-2997 or future of marketing and sales professionals through send e-mail to cdbdepartments@ scholarships and educational seminars. 29401 Stephenson Highway crain.com. Use any Business Diary Oct. 25 • 6 p.m.• The Townsend Hotel, Birmingham item as a model for your release, Madison Heights, MI 48071 and look for the appropriate Information regarding Tickets, Sponsorship and 248 548 6010 category. Without complete Program Advertising is available at www.msedetroit. information, your item will not run. org or by calling Meeting Coordinators, Inc. at www.gonzalez-group.com Photos are welcome, but we cannot guarantee they will be used. (248) 643-6590. 20110919-NEWS--0024-NAT-CCI-CD_-- 9/16/2011 9:49 AM Page 1

Page 24 CRAIN’S DETROIT BUSINESS September 19, 2011 ShowShow Them Them What What CALENDAR YouYou StandStand For For velopment Corp., Huntington Bank. Impact Awards Luncheon. 11 a.m.-1:30 VOICE OF BUSINESS IT MEETING With Jeff Brownlee, purchasing direc- p.m. Commercial Real Estate Women- tor, state of Michigan; John Eley Jr., se- Detroit. Honoring one new real estate is a commitment THURSDAY IN SOUTHFIELD nior supply chain manager, DTE En- development, one redevelopment and BBB Accreditation ergy Co.; Mike Finney, president and one special impact project (new or re- Automation Alley, Lawrence CEO, Michigan development) that significantly im- to fairness and honesty that lets Economic Devel- Technological University and proved their surrounding communi- others present the first in a series opment Corp.; Bri- consumers know you are a business an Smith, presi- ties. Oakland Hills Country Club, on The Voice of Business: Bloomfield Hills. $65; $600 for a table Understanding the Needs of the IT dent, Institute for of eight. Contact: (248) 427-8400; web- they can trust - a business that Workforce, Thursday, at LTU’s Supply Manage- site: www.crewdetroit.org. Technology and Learning Center ment; and Cynthia honors its promises and embodies Gallery on its Southfield campus. Kay, owner and president, Cyn- confidence they deserve. The keynote speaker is to be Jane thia Kay and Co. COMING EVENTS Montecillo, director of the U.S. MSU Manage- Detroit Economic Club. 11:30 a.m.-1:30 public sector application delivery ment Education p.m. Sept. 26. With U.S. Reps. Sander Your customers start with center, HP Enterprise Services. Center, Troy. $35 Levin, Fred Upton, and Candice Miller. A scheduled panel discussion is to Kay advance, $30 bbb.org. groups of 10 or more, $40 at the door. Westin Book Cadillac, Detroit. $45 include representatives from DEC members, $55 guests, $75 non- Beaumont Health Systems, Rave Contact: (313) 446-0300; email: Shouldn’t you? members. Contact: (313) 963-8547; web- Computer, Kelly Services IT [email protected]; website: site: www.econclub.org. Resources and others. www.crainsdetroit.com/events. Registration and a continental breakfast begin at 7:30 a.m.; the Facility Management Education Semi- Extreme Change 2011: Remaking De- program runs 8 a.m.-noon. nar. 4-8:30 p.m. Southeast Michigan troit’s Midtown. 11:30 a.m.-1:30 p.m. Preregistration, which is open Chapter of the International Facilities Sept. 28. Inforum. With Michael Dug- through Tuesday, is $10 for Management Association. With gan, president and CEO, Detroit Med- Automation Alley members, $20 Suzanne Zabowski, national accounts ical Center; Allan Gilmour, president, for nonmembers; at the door, $20 manager, Structure Tec; others. Fanuc Wayne State University; and Nancy for members and $30 for Robotics, Rochester Hills. $20 members, Schlichting, CEO, Henry Ford Health nonmembers. $30 nonmembers, $10 college students System. MGM Grand Detroit. $55 with ID. Contact: (810) 229-8973; email: members, $65 nonmembers, $480 table For more information, call (800) [email protected]; website: of eight. Contact: (877) 633-3500; web- 427-5100, email www.ifmasemichigan.org. [email protected], or visit site: www.inforummichigan.org. Start With Trust® www.automationalley.com. TUESDAY Better Business Bureau SEPT. 20 Serving Eastern Michigan and the Upper Peninsula Homeland to Hometown: The Next 10 Years. 7 a.m.-7 p.m.; also 7 a.m.-1 p.m. Call 248-223-9400 to learn more Sept. 21. National Defense Industrial Association, Michigan chapter. With or go to bbb.org Joseph Blozis, former detective sergeant, New York Police Depart- ment; Mark Borkowski, assistant com- missioner, Office of Technology Inno- vation and Acquisition U.S. Customs and Border Protection, Department of Homeland Security; others. Troy Mar- riott. $350. Contact: (248) 613-1102; email: [email protected]; Your Bank’s website: www.ndia-mich.org. Customs Town Hall. 8:30 a.m.-5 p.m. Automotive Industry Action Group, Not Lending? Honda of America Manufacturing Inc. With Benjamin Erulkar, senior vice president, economic development, De- troit Regional Chamber; others. AIAG, Southfield. $130 members, $150 nonmembers. Contact: (248) 213-4662; email: [email protected]; website: www.aiag.org.

Detroit Economic Club. 11:30 a.m.-1:30 p.m. With Jim Young, chairman, presi- dent and CEO, Union Pacific Corp. Dearborn Inn Marriott. $45 DEC mem- bers, $55 guests, $75 nonmembers. Contact: (313) 963-8547; website: www.econclub.org. WEDNESDAY SEPT. 21 Reinventing Yourself. 5-7:30 p.m. Auto- ours are motive Women’s Alliance Founda- tion; Meritor . Women’s Busi- Call for a free consultation. ness Resource Loan amounts: $1,000,000.00 and above. Group. With Lin Cummins, senior vice president, s Investment Real Estate s Equipment communications, s Owner Occupied Real Estate s Turnaround Consulting Meritor. Meritor, s Lines of Credit s Loan Modifications Troy. $50 VIP, $40 s Accounts Receivable s Bank Workouts nonmembers, $30 members. Con- tact: (877) 393- Cummins 2923; website: www.awafoundation.org. THURSDAY 800.509.3552 SEPT. 22 www.eclipsecapitalgroup.com Buy Michigan, a Second Stage Work- 2207 Orchard Lake Road, Sylvan Lake, MI 48320 shop. 7:30-11:30 a.m. Crain’s Detroit “Since 1997” Business, Small Business Association of Michigan, Michigan Economic De- 20110919-NEWS--0025-NAT-CCI-CD_-- 9/16/2011 6:21 PM Page 1

September 19, 2011 CRAIN’S DETROIT BUSINESS Page 25 Macomb: Crafting plans for defense growth amid cutbacks ■ From Page 3 announcement on that effort could The U.S. Army Tacom Life Cycle located more than 50 Sterling space in Warren or Troy or on the loss of JLTV could do to future em- come shortly, he said. Management Command, now at 8,450 Heights jobs to nearby Madison grounds of nearby Selfridge Air Na- ployment rolls, but BAE did say it The county is also coordinating employees after consolidating Heights under a consolidation of tional Guard Base in Harrison is already bidding separately on a with Automation Alley and the Michi- more than 1,100 civilian positions two separate divisions in March. Township due to space constraints possible contract to upgrade mili- gan Economic Development Corp. on from Rock Island, Ill., to its Warren Tacom management has not yet at the Arsenal, officials said. tary Humvees, which the Senate locating a defense industry expert headquarters this year, could shed made formal buyout offers. But a The Army recently announced a subcommittee leaders recom- to work within the county Planning several hundred civilian jobs with- similar inquiry earlier this year plan to reduce the size of its world- mended as an alternative to JLTV. and Economic Development Depart- in the next few months to cope. helped the agency identify 400 em- wide civilian workforce by more Weapon systems analyst Dean ment to help coordinate the coun- Maj. Gen. Kurt Stein, command- ployees for buyouts in early Sep- than 8,700 by next September. Last Lockwood of Forecast International ty’s defense corridor strategy. ing general at Tacom, confirmed tember at other Tacom bases un- week the defense subcommittee of said he believes the local contrac- Macomb conducted a search ear- last week the command put out an der Stein’s command in Aniston, the Senate Appropriations Com- tors bidding on JLTV have been lier this year to fill a defense coor- inquiry to senior employees sever- Ala., Watervliet, N.Y., Rock Island mittee also proposed eliminating streamlining for some time since dinator position, to pay around al weeks ago to gauge their inter- and elsewhere. the Joint Light Tactical Vehicle, the program was on tentative bud- $70,000-$84,000 per year, in the est in taking buyouts, under the “We don’t have a set number yet the largest new ground vehicle get footing, so the impact of last Planning and Economic Develop- federal Voluntary Separation In- (for Warren), to be honest. We program in development through week’s announcement could be ment budget, but it has held off on centive Payments and Voluntary know we need to rightsize the com- Tacom with an estimated value of minimal. filling it until it finishes exploring Early Retirement Authority pro- mand, but to do it in a way that we more than $50 billion. Chad Halcom: (313) 446-6796, other options, such as a collabora- grams offered through the U.S. Of- don’t lose all our expertise at once. GDLS and BAE both declined to [email protected]. Twitter: tion with the Alley or MEDC. fice of Personnel Management. So we are looking into opportuni- comment on what the potential @chadhalcom “We were fortunate in other ar- General Dynamics Land Systems is ties that might be out there for a eas of economic development to down 300 employees in Sterling mix of employees with different have that subject matter expert in Heights and Shelby Township experience levels. And if we get house, already working with us, through layoffs and attrition since those right, we’re hoping that and it was just a question of mak- the beginning of this year, accord- means we don’t have to do a reduc- REAL ESTATE ing that appointment,” Hackel said. ing to a statement last week on its tion in force (layoffs).” “In this case, we wanted to take the local employment, while BAE Sys- The Detroit Arsenal is coordi- ANNOUNCEMENTS INDUSTRIAL PROPERTY time to help find that person.” tems Inc. has eliminated nearly 40 nating with Army Materiel Com- The defense industry faces a flat jobs via attrition in the region in mand and other agencies of the AVAILABLE NOW or modestly reduced government 2011 and is off about 200 jobs from U.S. Department of Defense to iden- STOP COMMERCIAL REAL ESTATE budget in 2012 and potentially up its July 2010 peak of nearly 540 lo- tify what operations remain es- 4,000 to 100,000 sq. ft. to $850 billion in cuts from future cal employees. sential and where the command FORECLOSURE Also 10,000 & 25,000 sq. ft. budgets through 2021, depending Ladson, S.C.-based Force Protec- can “find efficiency and eliminate • All property types on upcoming efforts of the Joint tion Inc. closed its Sterling Heights redundancy,” Stein said. While • 7-9% fixed interest Free Standing Bldgs w/truckwells. Select Committee on Deficit Re- office in February and laid off 22 there is no target size the com- rates duction convened by Congress. employees as part of a company- mand is trying to reach, Stein said • 30-day closing 1 Mile from Metro Airport Local employers are already wide reduction. the restructuring also could help • 30-year amortization adapting to the anticipated cuts, Chesterfield Township-based Tacom eliminate much of its need • Foreclosure OK REA CONSTRUCTION particularly as programs worth Burtek Inc. reports about 80 fewer to lease office space outside the • Bankruptcy OK (734) 946-8730 tens of billions of dollars for De- jobs at its headquarters campus base itself. • Receivership OK troit-area contractors are meeting compared with 2010 data furnished As many as 1,300 people work ei- Also Heavy Industrial with the budget ax. to Crain’s, and Navistar Defense re- ther at leased commercial office IVY PRIVATE CAPITAL www.ivyprivatecapital.com Land Available 248-430-4858 www.reaconstruction.net "The place to go when your bank says NO!" HAP: Targeting self-funded market OFFICE SPACE ■ From Page 3 Medical Space for Lease -- Troy asked that HAP the past three COMMERCIAL PROPERTIES • 2,934 Square Feet • Large Waiting Room years to offer administrative ser- • Built-In Reception Area vices contracts. HAP files to acquire Midwest Health Plan -- DEVELOPERS -- • 6 Exam Rooms with Sink & Cabinet “We are not set up on a technolo- OWNER MUST SELL! • 4 Office Rooms BY JAY GREENE “The acquisition by HAP ful- • 1 Janitorial Room gy basis to do this on a large scale,” 5.5 acres zoned commercial. • Built-In Kitchen Area Tournoux said. “The administra- CRAIN’S DETROIT BUSINESS fills my desire to establish a lega- Approved for shopping center. cy and preserve mutually benefi- Located in the Sunset Plaza Shopping tive services for self-funded clients Across from Courtland Mall, Center. Anchored by Kroger, CVS, Health Alliance Plan of Michigan cial relations for (Midwest) Oakland Medical Center, Castleman Eye are different than fully insured.” Center/Court Street - Flint has filed state regulatory papers members and providers,” said Center, Primary EyeCare, Redwood Dental Tournoux said HAP had consid- $1.3M and many other tenants. to acquire Midwest Health Plan Inc. Saffer, who founded Midwest in David Weiss -- 248-763-8814 ered acquiring an existing third- Please contact Martin Zide or Paul Chosid of Dearborn for $70 million, ac- 1994. (248) 879-5100 party administration company or cording to the Office of Financial In 2010, Midwest Health Plan creating its own. But a 10-year re- and Insurance Regulation. earned $8.5 million on revenue of lationship with ASR Health Bene- Call Us For Personalized Earlier this year, Crain’s re- $247.8 million for a 3.4 percent Rochester Hills fits, with which both companies ported HAP’s interest in entering profit margin. Through six Service: (313) 446-6068 share regional provider networks, the profitable Medicaid managed months of 2011, Midwest earned 1/2 Mile to M-59, off Crooks led to talks and the preliminary FAX: (313) 446-1757 care market, where 14 Medicaid $4.6 million on revenue of 16,665 S.F. - Freestanding Building agreement. E-MAIL: [email protected] HMOs compete for 1.1 million $129.6 million, said OFIR. Double Exterior Truck Well Todd Stacy, ASR’s president, Medicaid beneficiaries with an- HAP earned $25.8 million on Open contemporary office INTERNET: said the contract with HAP will other 600,000 expected starting in revenue of $1.73 billion for a Super clean www.crainsdetroit.com/section/classifieds help ASR expand its business in 2014 under federal health care re- 1.4 percent profit margin in 2010, See Southeast Michigan and help HAP form. said OFIR. Through the first six expand its reach statewide. Crainsdetroit.com/Section/Classifieds Bill Alvin, HAP’s CEO, said months of 2011, HAP earned 248-548-2700 for more classified advertisements Formed in 1984, ASR has 100,000 Midwest will become an affiliate $11.3 million on revenue of members in Michigan, Indiana, of HAP, integrate information $893.4 million. Ohio and several other states. systems and consolidate finan- Alvin said health care reform “HAP has a top-provider network cial statements. will lead to more collaborative and a long history of medical and CEO Mark Saffer of Midwest agreements between commercial The Crain’s reader: disease management,” Stacy said. will continue to lead the 73,000- and Medicaid plans because some Tournoux said HAP projects to member health plan, Alvin said. people will move back and forth 29.2% are with companies grow to more than 50,000 employ- Its offices and employees will re- between public and private insur- ees in its administrative services main in Dearborn, he said. ance as their income levels contemplating moving/ business over the next two years. Saffer said one reason Midwest change. She expects to contract with com- chose to join 500,000-member The acquisition still needs ap- expanding. Help them panies with 100 employees to more HAP was because of its long- proval from Insurance Commis- than 1,000. standing contractual relation- sioner Kevin Clinton and the find you by advertising in “We will start sales this fall,” ship with Henry Ford Health Sys- Michigan Department of Community said Stacy, who said the contract tem, HAP’s parent company. Health. Crain’s Real Estate section. will become effective Jan. 1. ASR could hire 15 to 20 workers pects to earn 2.5 percent profit provide business to Henry Ford in Southeast Michigan over the margins from its partnership with Health System, its parent company. 313.446.6068 • FAX: 313.446.1757 next two years if HAP’s growth ASR, she said HAP primarily Jay Greene: (313) 446-0325, E-Mail: [email protected] projections are correct, he said. hopes to expand its market share, [email protected]. Twitter: @jay- While Tournoux said HAP ex- give clients insurance options and bgreene 20110919-NEWS--0026-NAT-CCI-CD_-- 9/16/2011 6:26 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS September 19, 2011 Tough work begins on state health insurance exchange

Reporter Amy Lane interviewed bronze, silver, gold and platinum — to buy their premium fox guarding the hen house. funding (federal funding for fur- Steven Hilfinger, director of the from offerings with basic benefits and down as low as possible, In the legislation, we’re ther study of the exchange) total- Michigan Department of Licensing low premiums and more significant is it certain types of cov- contemplating a pretty ing $220 million. We have not done and Regulatory Affairs, about the co-pays, to richer policies with higher erage … you’ll be able to lean board that would be that yet, we’re going to submit that health care exchange that will be premiums. How will the exchange enter some of that infor- initially appointed by the this month. There are about 15 created in Michigan as part of na- make insurance shopping as easy as mation, and there will be governor that would be of states that have adopted legisla- tional health care reform. other online experiences, like Orbitz? a calculator feature that about seven people. We’re tion authorizing an exchange. One of the ways it will make it will help people derive also contemplating that We need to be able to have the The Mi Health Marketplace health easier is a calculator feature for what options are avail- the commissioner of the exchange be functional by the end insurance exchange will have at least people to be able to specify what is able. OFIR (Office of Financial of 2013. four different pricing structures — important to them. Are they trying and Insurance Regulation), And if you wanted to How much more beneficial is a Kevin Clinton, would say “What if I wanted to state-operated health insurance ex- have a nonvoting position increase my deductible, change than a federally operated ex- on the board. OFIR will be what will that do to my change? Experience the difference. playing a key role in de- premium,” that calcula- A state-operated exchange that tion would come up. Steven Hilfinger, termining whether a plan Now offering 1/4 share partnership opportunities in the following aircraft. Michigan we start now will be able to work They would be able to is a qualified health plan with the health plans in Michigan, identify the plans in the Department of to be on the exchange. GULFSTREAM III, pictured • HAWKER 800 Licensing and be able to work with consumer marketplace that would The rules are still being Regulatory Affairs groups and other stakeholders to meet the parameters that developed. But obviously start to form the marketplace in a the person had identified. there will be strong rules way that hopefully would meet the There will be a lot of detail that on conflict of interest. What the needs of Michiganders. And hope- will go into making it consumer governor wants to do is rely on fully by starting early we can have friendly. There will be the ability business principles in terms of an earlier focus on cost contain- for people to be assisted by agents that initial board; what kind of ca- ment, cost management. and navigators. There’s still a lot of pabilities would you want to bring The features and costs of a feder- definition that needs to go into what to bear for an IT company to be al exchange are a big unknown would be a navigator. A navigator successful. You’d want to have and probably won’t be known for would be, at least as envisioned, good health care expertise, you some time. And so I think we’ll someone like a nonprofit, an AARP, would want to have people that have limited ability to influence that might help some of their mem- have experience in successful on- that and build in the kind of fea- bers navigate a site. There are some line enterprises, sales and market- tures or cost containment that we business groups out there … that ing, legal, finance. can if we start now with a state are interested in helping their Whether a representative of a plan. members navigate the site. plan issuer would be able to sit on the board would be determined af- Will the exchange act as a competi- Federal funds will pay for the opera- ter the final conflict rules would be tor to individual and small group plans tion of the exchange through 2014, developed. Conflict rules will be in the existing insurance market? and it must be self-sustaining on and addressed in the draft legislation, Not as a competitor to plans. It after Jan. 1, 2015. How will the ex- and also will be covered in the fed- will be another avenue for those Call Geoff Sherman today, 1.248.568.0979 www.skywayavjets.com change be funded? eral regulations. plans to offer themselves to con- On and after January 2015, at sumers. The exchange will be con- least two sources. One, assess- Part of the $1 million federal plan- structed in a way that the plans ments and fees on plan issuers. So ning grant that Michigan got in 2010 are incented to participate, and if someone sells a plan on the ex- was for preliminary study of the feasibil- want to participate. change, a certain percentage of the ity of the health care exchange, and premium, or it could be calculated there were work groups that included What would be the incentive for a in other ways, would be charged to the area of technology. In terms of tech- plan to participate? the plan issuer. That’s contemplat- nology, what is the scope and timeline The market it will create. It was ed; the board of directors will have of vendors and contracts that will be estimated that in its initial year of to develop a revenue model and needed to build it? How will you do this? operation that there might be as make decisions. David Behen (Michigan chief in- many as 520,000 individuals who Second would be other things formation officer), he’s been work- are uninsured or came from other plans that would come onto the that the board of directors or ex- ing with our department, with the marketplace, and another 500,000 change determines. Some advertis- OFIR, with the Department of Com- estimated that would be Medicaid ing, for example. That will really munity Health and the budget office, eligible, for more than 1 million be up to the board. and we’ve been doing an internal participants in the first year. One of the reasons we want to assessment of the IT infrastruc- There’s going to be in Michigan a form the nonprofit is that we don’t ture that we have and how we need very extensive customer base, have all the answers. People who to integrate what we have into the through the exchange. come from the different business exchange. The goal would be to try disciplines can bring more of a and leverage the existing re- Will insurance agents be allowed to free market approach to it, creat- sources that we have and integrate charge commissions for plans in the ing an exchange that plan issuers those with the exchange. exchange? and purchasers will want to use. But at the same time the board is Yes, certainly that’s our vision State funding would not be used, going to look at this comprehen- for the exchange. That it would be and our legislation will be clear sively to determine the final IT ar- a portal that insurance agents and that the operations of the exchange chitecture. There are vendors out brokers could sell through and col- won’t be funded by state dollars. there that have very capable prod- lect commissions like they do now, The exception to that is 10 percent uct offerings, and certainly those outside of the exchange. of the IT costs related to the Medic- would be looked at closely. Will the exchange collect the premi- aid integration, those will have to The exchange, as we envision it ums, or will the health plans collect be borne by the state later on in and as the governor envisions it, the premiums? the process. would be as lean as possible. If it The draft regulations on that are How much do you anticipate it will would be able to contract for a ser- being commented on. Our prefer- cost to operate? vice that could be done more effi- ence would be for that to be some- The final budget, that’s being de- ciently outside of the exchange, it thing that issuers would handle. veloped throughout the fall. We’ll would look at that. For example, contracting for key components of Who will monitor fraud and abuse have a better idea of that once the within the exchange? legislation is passed. You need to the exchange, with outside ven- dors. Contracting with OFIR, to de- The exchange is going to be re- have legislative authority to pro- sponsible for developing a plan for ceed to level-two funding (federal termine whether something is a qualified health plan. fraud, waste and abuse. The board funding covering most IT costs.) would have oversight responsibili- You have to demonstrate legal au- How does Michigan compare to oth- ty of that plan and the plan would thority, a four-year budget, have to er states in its progress to get an ex- be implemented by the executive have a plan for waste, fraud and change going? director and staff. abuse, among requirements. I think we’re neither ahead of And we’ll have to make certain What types of people might be on the curve nor behind the curve. disclosures right on the site, the the exchange board, and will insur- But if we delay further, I think amount of fraud, waste and abuse. ance industry interests hold a voting we’ll be behind the curve. There Amy Lane: (517) 371-5355, position? One health care coalition have been 17 states that have ap- [email protected]. Twitter: last week said that would be like the plied for and received level-one @alanecdb 20110919-NEWS--0027-NAT-CCI-CD_-- 9/16/2011 6:22 PM Page 1

September 19, 2011 CRAIN’S DETROIT BUSINESS Page 27 Dworkin: Creates more nonprofits ■ From Page 3 and biogeneticist at Columbia in New York,” Dworkin said. In some areas of science, the un- Wello raises funds for WaterWheel derrepresentation of black and Latinos is greater than it is in the Wello founder Cynthia Koenig to have to rely on grant donations arts because young people of color has raised just a quarter of the and contributions.” often do not have access to the sci- money she projects she’ll need to Koenig, 33, has begun building ences and opportunities to develop manufacture and distribute her a board of directors for Wello, in- intellectual curiosity, he said. WaterWheel in rural India, but cluding Josh Dick, principal of Dworkin has put in place a she’s still intent on beginning Josh Dick Photography in New board of directors chaired by Mar- production there in December. York, and Sean Wood, founder ta Manildi, attorney at Ann Arbor- The rolling and CEO of Freeworld Media in At- based Hooper Hathaway Price drum, which lanta. Beuche & Wallace PC, and a nation- can hold up to Koenig will head to India on al board of advisers for Apex, 24 gallons of Oct. 5 as a Social Impact Fellow while developing programs that water and be with Indian social venture incu- will allow it to engage young peo- pushed rather bator Dasra and spend 10 days ple of color in the sciences and in than carried, with 15 other social entrepre- architecture. makes the neurs working to take their non- Operating on a 2011 budget of chore of secur- profit and for-profit ideas to scale. $150,000, Apex is launching its first ing clean water Dasra Social-Impact, an execu- less difficult tive education program, provides program this fall: “Battle of the Koenig Bricks,” a national Lego-building and opens op- training, mentoring and opportu- competition geared to black and portunities for women to sell wa- nities to meet other social entre- Latino youths around the country, ter-providing services to others. preneurs operating in India. ages 12-17. “We’re seeking $125,000 to help Koenig plans to return to Ann The Lego Group, Ford Motor Co., us conduct our prelaunch activi- Arbor to continue fundraising the University of Michigan, the Col- ties,” including final tweaks such and to hire a country manager lege for Creative Studies and Cran- as a nestable design that reduces from the U.S. to accompany her to brook Educational Community are shipment costs, Koenig said. India in November. providing grants and/or in-kind So far, she has raised $25,000 Once back in India, Koenig support such as housing for stu- from friends and family, grants, plans to hire an Indian director of dents who will come for the finals, individuals, and business plan operations and finalize talks with faculty time and other resources, competitions. a manufacturer there. Dworkin said. Now Koenig seeks funding Wello plans to sell and distrib- Between now and December, from philanthropic angels and ute 1,000 WaterWheels in the Indi- black and Latino students from traditional angel investors. an state of Rajasthan during the around the country will be invited Wello is organized as a 501(c)3 pilot project before taking it to to visit www.battlebricks.org to nonprofit but is creating a for- Haiti and Kenya. apply for the preliminary round of profit arm, Koenig said. Koenig expects to sell the Wa- theme-based Lego builds and to “We think in order to ensure terWheel for $25-$30 and to subsi- submit photos of their work. Fifty the long-term sustainability of dize the cost for those who need it semifinalists will be chosen and the business, we have to be for- with advertisements on its side. come to Southeast Michigan in profit,” she said. “We don’t want — Sherri Welch May for the semifinals and finals, which will take place at Cran- engagement with inspiring based food rescue and food bank. brook, CCS and UM. thought leaders bringing change The three vying for the grant: The winner will go home with to their communities. Ⅲ Ann Arbor-based Wello $10,000 and possibly additional Dworkin’s own musical and founder Cynthia Koenig, who plans scholarship money. dramatic reading performances to bring an affordable pushable The competition, which will re- are featured at www.serafi- water drum, called a WaterWheel, quire participants to draw up de- naarts.org, along with 20-minute to developing countries where signs of their projects, highlights videos with community leaders women currently carry water in architecture, engineering and de- and social entrepreneurs to pro- heavy pots on their heads for long sign, Dworkin said. vide viewers a window into their distances. (See story, this page.) “Eventually, we’d want to devel- paths. Ⅲ En Garde Detroit founder Bobby op competitions that impact all of That work has evolved into Smith, who is using fencing to ad- the STEM (science, technology, en- what is now Serafina’s main pro- dress issues facing urban young gineering and math) fields,” he gram, a pilot for a television se- people, such as financial literacy, said. ries called “The Catalyst,” which nutritional information and cul- Children of ethnicities under- will highlight three aspiring so- tural exposure. represented in those fields often cial entrepreneurs here and Ⅲ Kelly Hall-Tompkins, founder of face resource issues in their across the U.S. and gauge Music Kitchen, a New York-based schools or homes that prevent whether they are employing good program that takes classical music them from getting the same learn- business practices to give their to homeless shelters. ing opportunities, said Jason Lee, ideas life. Serafina and West Bloomfield executive director of the Detroit Dworkin contributed his last Township-based Evolution Media Area Pre-College Engineering Pro- $10,000 in MacArthur grant mon- Inc., which is donating its services gram. ey to the effort and secured a for the pilot, are in the final stages DAPCEP has spent the past 35 $5,000 grant from the DTE Energy of editing and plan to pitch it by years working to increase the Foundation to produce the pilot. early October to networks includ- number of historically underrep- “It’s sort of ‘Shark Tank’ meets ing Discovery, Bravo and PBS. resented students who are moti- ‘The Apprentice,’ ” Dworkin said. Highlighting the business prac- vated and prepared academically If the show is successful, it tices social entrepreneurs need to to pursue degrees leading to ca- “could really help to make social have in place to make their efforts reers in STEM-related fields entrepreneurship cool” and in- successful could be helpful to oth- through K-12 supplemental educa- spire talented people, he said. er aspiring entrepreneurs, said tional programming held on uni- Three social entrepreneurs will Karla Hall, vice president and sec- versity and corporate campuses. answer questions posed by a three- retary of the DTE Energy Founda- person panel, with Dworkin as tion and manager of corporate and chairman and two other business governmental affairs-corporate Social entrepreneurship and nonprofit experts who will ro- contributions for DTE Energy Co. Dworkin plans to assess the tate on the panel as candidates vie “With a social entrepreneur, I skills developed by another set of for a $5,000 grant. might be willing to listen to their people — aspiring social entre- The panel for the pilot, filmed at passion, but at the end of the day, preneurs — through a third non- Masco Corp.’s Taylor headquarters, they’re still going to have to have profit he founded in 2006, Serafina includes Chacona Johnson, presi- these core things in place in order Arts Inc. dent of the Detroit Public Schools to be successful” and obtain fund- Serafina began with a goal to in- Foundation, and Paul Saginaw, co- ing, Hall said. crease diversity through the liter- founder of the Zingerman’s Commu- Sherri Welch: (313) 446-1694, ary, performing and visual arts nity of Businesses who also founded [email protected]. Twitter: @sher- and to develop, enrich and expand Food Gatherers, the Ann Arbor- riwelch 20110919-NEWS--0028-NAT-CCI-CD_-- 9/16/2011 6:20 PM Page 1

Page 28 CRAIN’S DETROIT BUSINESS September 19, 2011 UM conference tackles Raises: Healthy businesses bring back pay hikes value-based insurance ■ From Page 1 Those interested in learning dropped to 17 percent, according to The compensation picture sponding employers reported aver- spondents said they plan to give more about value-based health Livonia-based ASE’s 2011-2012 varies by industry. age salary increases of 3.6 percent base pay increases in 2012, and insurance will have access to Salary Budget Survey released Fri- Hotels and casinos, for example, — higher than the overall average. half said they’d give higher base some leading experts on the top- day. For the first time since 2008- are doing much better than they “Technical business has picked pay increases in the coming year ic at an upcoming University of 2009, merit increases are at or were in the recession, and raises up … because of that, they have the than they did this year, citing Michigan conference. slightly above 3 percent among the are commonplace now, said Ben money to reward employees,” greater competition for workforce In addition, Sen. Tom businesses that budgeted increas- Schwartz, president of Farming- Rowe said. and anticipated labor shortages, Daschle will deliver the es, said Jason Rowe, ASE’s manag- ton Hills-based Harper Associates, a Just 17 percent of Michigan com- according to the survey which was keynote address at the Nov. 16 er of survey services. recruitment and job placement panies surveyed froze wages this released in late July. event. A former U.S. Senate “Companies that have an idea of firm. The raise rates vary by job. year, down from 37 percent last The risk of losing key employees Majority Leader, Daschle is what they’ll do in 2012 are already In the construction industry, year, according to the survey. is weighing heavily on employers the author of Getting it Done: projecting merit pay increases of where work is still slow, some The 2011 declines in wage as their compensation budgets re- How Obama and Congress Fi- 3 percent or more again,” he said. companies are starting to offer freezes among respondents mark main flat, said Catherine Hart- nally Broke the Stalemate to “It’s staying constant or trending raises again, but they are less than the second consecutive year of im- mann, principal with Mercer’s Re- Make Way for Health Care Re- upward. Employers and business- 3 percent, said Terry Merritt, provement, and that trend should wards consulting business, in a form. es are expecting things to continue group vice president of human re- continue next year “barring a dou- statement on the study. The State of Value-based Insur- to improve.” sources for Detroit-based construc- ble-dip recession,” Rowe said. “Employers realize that in order ance Design symposium runs ASE analyzed responses from tion firm Walbridge Aldinger Co. David Sowerby, chief market an- to hang on to their best employees, 7:30 a.m.-4:30 p.m. at the Univer- 252 for-profit and nonprofit em- But some employers, such as alyst in the Bloomfield Hills office they’re going to have to reward sity of Michigan North Campus Re- ployers with data on current and Ann Arbor-based Domino’s Pizza of the brokerage firm of Loomis them.” search Complex. The free event projected salary budget increases Inc., maintain a performance- Sayles & Co. Inc., said that while While noncash rewards such as is designed to foster collabora- and salary structure adjustments. based compensation plan in lieu of companies have been slow to hire training and new opportunities help tion among professionals Statewide, exempt employees re- an “everyone gets a raise” philoso- additional employees, they have be- retain employees, “base pay is still whose work includes value- ceived average merit raises of phy, said Tim McIntyre, vice presi- gun rewarding current employees the most important element of the based insurance design. 3.04 percent this year and non-ex- dent of communications. for their increased productivity. employment deal,” Hartmann said. Topics include evaluation of empt employees 3.07 percent, Domino’s awarded eligible “There is a thaw,” he said. Employers struggling to balance V-BID plans’ impact on cost and while officers and executives aver- salaried employees the “Team “Cash flow is meaningfully im- budgets with the need to retain crit- health; V-BID provisions in aged 3.56 percent raises, according Achievement Dividend,” a per- proved, and productivity gains are ical talent awarded larger base pay health reform legislation and to the survey. centage of their salary as a bonus supporting more wage gains.” increases of 4.4 percent, on average, what they mean for employers; Of the total 252 employers sur- paid when the company meets or The local and statewide results to top performers this year, com- successes, challenges, barriers, veyed, 211 were from Southeast exceeds its financial goals, in 2009 on compensation trends are also in pared to 2.8 percent to average per- solutions and outcomes ex- Michigan. and again last year. line with national trends, according forming employees and just plained by plans; and the fu- Some companies in other parts “This compensation philosophy to a recent survey from Mercer LLC. 0.4 percent for the weakest perform- ture of V-BID and payment re- of the state gave larger merit pay … makes us very competitive and The 2011/2012 U.S. Compensa- ing employees, the study showed. form. increases, which pulled up the ties each team member’s reward tion Planning Survey of 1,200 mid- “We do market analyses of what For more information or to statewide pay raise increase aver- directly to the results of the com- size and larger employers across the average pay is and try to be register, visit age for executives and officers, pany,” McIntyre said. the U.S. found an average base pay somewhere around that,” said www.sph.umich.edu. Click on Rowe said. The trends for technical employ- increase of 2.9 percent and projects Kathryn Blackwell, vice president News & Events and then scroll Locally, officers and executives ee compensation are slightly higher a 3 percent increase, on average, in of communications and marketing to November events. averaged a 3.36 percent pay in- than other segments. In the ASE re- the coming year. for the NAFTA region of Auburn — Ellen Mitchell crease this year. port on technical employees, 13 re- Nearly all, or 97 percent, of re- Hills-based Continental Automotive Systems Inc., although Blackwell declined to provide specifics on base pay increases. The ASE salary survey is avail- able free to members and for $235 to others by emailing [email protected]. Sherri Welch: (313) 446-1694, [email protected]. Twitter: @sher- riwelch Daniel Duggan, Tom Henderson, Nathan Skid and Dustin Walsh contributed to this report. You Deserve More Thought Per Square Foot UM creates new medical department

The University of Michigan’s board of regents approved last week the creation of a Computation- al Medicine and Bioinformatics De- partment. The UM School of Medicine creat- ed a Center of Computational Medi- cine and Bioinformatics within the medical school in 2005 as a way to bring together data analytics across several disciplines. The de- partment was created as a way to recruit faculty to the specific disci- pline, said Brian Athey, chair des- Real Estate Strategy ignate of the department and di- rector of academic informatics. Tenant Representation “We’re deeply committed to es- tablishing a nationally and interna- Buyer Representation tionally top-ranked department and first creating the center has given Project Feasibility us a huge jump start on that.” Good real estate deals are at lower lease rates; great ones are UM plans to become a top-10 Construction Oversight aligned to the needs of your organization. Let our experienced medical school by 2015 with the creation of the department, it said real estate department for hire show you what to ask for. Incentives in a press release. The center has 118 affiliated fac- Lease Administration ulty — 55 from the medical school pmcresa.com 248.223.3500 and 63 from other schools at UM. — Dustin Walsh 20110919-NEWS--0029-NAT-CCI-CD_-- 9/16/2011 6:23 PM Page 1

September 19, 2011 CRAIN’S DETROIT BUSINESS Page 29

TIGER DEALS FOR 2011 Tigers: Deals deliver www.crainsdetroit.com Key acquisitions. Statistics cover through Sept. 15 games: ■ From Page 1 EDITOR-IN-CHIEF Keith E. Crain Victor Martinez, 32 Ⅲ Stats: In 29 games with Detroit, PUBLISHER Mary Kramer, (313) 446-0399 or payroll and making savvy free- [email protected] Ⅲ Position: hitting .306 with five home runs EXECUTIVE EDITOR Cindy Goodaker, (313) 446- agent signings and trades,” said Designated hitter, and 21 RBI. BASEBALL BUCKS 0460 or [email protected] Maury Brown, president of Port- first base, catcher. Detroit Tigers owner ’s DEPUTY MANAGING EDITOR Jennette Smith, Joaquin Benoit, 34 land, Ore.-based Business of Sports (313) 446-1622 or [email protected] Ⅲ How acquired: spending on player salaries, Ⅲ Position: Reliever Network. SENIOR EDITOR Bob Allen, (313) 446-0344 or Signed as a free including prorated signing [email protected] agent on Nov. 23. Ⅲ How acquired: So what signing or trade does bonuses, on each Opening Day WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- Ⅲ Contract: Four Signed as free Dombrowski see as the linchpin since Jim Leyland became 8158 or [email protected] agent on Nov. 19. for this season? manager in 2006: COPY DESK CHIEF Gary Piatek, (313) 446-0357 or years, $50 million. [email protected] Ⅲ Contract: Three Like a good father, Dombrowski Ⅲ Stats: Hitting .323 with 11 home Ⅲ 2011: $106,953,000 ASSISTANT NEWS EDITOR Jeff Johnston, (313) runs and 90 RBI. years, $16.5 million. says he loves all his children Ⅲ 2010: $133,995,400 446-1608 or [email protected] Ⅲ Stats: In 62 equally: “They’ll all important,” Ⅲ 2009: $115,085,145 DATA EDITOR Brianna Reilly, (313) 446-0418, Doug Fister, 27 appearances, 4-3 record, 56 he said. “I don’t know if I can tell [email protected] Ⅲ 2008: $137,685,196 WEB DEVELOPER Steve Williams, (313) 446- Ⅲ , 3.12 ERA. you one. Everything ties together 6059, [email protected] Position: Starting Ⅲ 2007: $95,180,369 to make the club.” WEB EDITOR Gary Anglebrandt, (313) 446-1621, Wilson Betemit, 29 Ⅲ 2006: $82,612,866 Ⅲ How acquired: He did allow that signing free- [email protected] Ⅲ Position: Third EDITORIAL SUPPORT Robertta Reiff (313) 446- Trade from Seattle agent slugger Victor Martinez to a Source: Cot’s Baseball Contracts base 0419, YahNica Crawford, (313) 446-0329 with relief pitcher four-year, $50 million contract on Ⅲ How acquired: NEWSROOM (313) 446-0329, FAX (313) 446- David Pauley in Nov. 23 to be Detroit’s regular des- 1687 TIP LINE (313) 446-6766 Trade on July 20 worked. exchange for ignated hitter was crucial to the In 2009, the Tigers made a mid- REPORTERS , with the Kansas City team’s success this season. season move for pitcher Jarrod Daniel Duggan, senior reporter: Covers retail, real , Francisco Martinez Royals in exchange estate and hospitality. (313) 446-0414 or and . for left-handed “I don’t think we’d be where we Washburn, who struggled the rest [email protected] are if it wasn’t for him,” Dom- Jay Greene, senior reporter: Covers health care, Ⅲ Contract: One year, $436,000. pitcher Antonio Cruz of the season going 1-3 with a 7.33 insurance and the environment. (313) 446-0325 or and catcher Julio Rodriguez. browski said. ERA in eight starts for Detroit. [email protected]. Ⅲ Stats: In eight starts with Detroit Chad Halcom: Covers law, non-automotive Ⅲ Martinez’s solid hitting fills a tac- going into Friday, Fister is 5-1 with Contract: One year, $1 million. Dombrowski also made a waiver manufacturing, defense contracting and Oakland Tigers are responsible for a tical function: Protecting Miguel and Macomb counties. (313) 446-6796 or a 2.28 ERA and 41 strikeouts over trade that summer for infielder [email protected]. prorated portion of his salary for 51.1 innings. Cabrera. Opponents cannot inten- Aubrey Huff, who hit an anemic Tom Henderson: Covers banking, finance, the rest of the season. technology and biotechnology. (313) 446-0337 or tionally walk Cabrera to get a sig- .189 in 40 games for the Tigers. [email protected]. , 25 Ⅲ Stats: In 37 games with Detroit, nificantly weaker hitter, as they “It wasn’t like taking a gamble Nancy Kaffer: Covers small business, the city of Ⅲ Position: hitting .279 with four home runs have in the past. on someone you (just) think might Detroit, Wayne County government. (313) 446- and 17 RBI. 0412 or [email protected]. Outfield And on Aug. 25, Dombrowksi do well,” Dombrowski said, noting Bill Shea, enterprise editor: Covers media, advertising and marketing, the business of sports, Ⅲ How acquired: Brad Penny, 33 pulled the trigger on a rare intra- that Washburn and Huff had been and transportation. (313) 446-1626 or Waiver trade on Ⅲ division trade with the Minnesota having good years prior to the [email protected]. Aug. 25 with the Position: Starting Nathan Skid: Multimedia reporter. Also covers the pitcher Twins to get Delmon Young in ex- trades. “Sometimes they work, food industry and entertainment. (313) 446-1654, change for a minor-league pitcher sometimes they don’t.” [email protected]. Ⅲ How acquired: Sherri Welch: Covers nonprofits and services. in exchange for a and reliever Lester Oliveros. In 2011, they’ve worked, especial- minor-league Signed as free (313) 446-1694 or [email protected] But Dombrowski’s best move ly the trades, but the Tigers have Dustin Walsh: Covers auto suppliers, steel, higher pitcher and reliever Lester Oliveros. agent on Jan. 18. education and Livingston and Washtenaw may have been the July 30 trade been fortunate to also get excellent counties. (313) 446-6042 or [email protected] Ⅲ Contract: One year, $5.3 million. Ⅲ Contract: One for inexpensive right-handed LANSING BUREAU Tigers are responsible for a year, $3 million. seasons in 2011 from young inex- pitcher Doug Fister in what at the Amy Lane: Covers business issues at the Capitol, prorated portion of his salary for Ⅲ Stats: In 29 pensive homegrown players such telecommunications and utilities. (517) 371-5355, time was a move to bolster the as catcher Alex Avila and outfield- FAX (517) 371-2492, [email protected]. or 115 W. the rest of the season, which is starts, 10-10 record, 5.07 ERA, 71 Allegan, Suite 220, Lansing 48933. about $1.3 million. strikeouts. back half of the starting rotation. er Brennan Boesch. ADVERTISING Fister has turned out to be much But it’s the front office moves ADVERTISING DIRECTOR Marla Wise, (313) 446- more than a No. 5 starter. that set the team up to be successful 6032 or [email protected] FORTUNATE FLYBYS While staff ace Justin Verlander and then shook things up to fuel a SALES INQUIRIES: (313) 446-6052; FAX (313) And two high-priced free agents the Tigers were rumored to have pursued likely is cruising to his first Cy second-half improvement that got 393-0997 ADVERTISING SALES Christine Galasso, Matthew but fortunately didn’t sign: Young Award as the American Detroit past fading Cleveland and J. Langan, Lori Tournay Liggett, Tamara Rokowski, League’s best pitcher, Fister may Chicago teams. Cheryl Rothe, Dale Smolinski Adam Dunn, 31 Carl Crawford, 30 CLASSIFIED SALES (313)-446-0351 be equally as important for the “Dombrowski’s personnel moves Ⅲ Position: Infield Ⅲ Position: Outfielder EVENTS DIRECTOR Nicole LaPointe Tigers’ fortunes because he’s pro- this year have obviously worked MARKETING ARTIST Sylvia Kolaski Ⅲ Contract: Signed four-year, Ⅲ Contract: Signed seven-year, vided reliability after Verlander out very well,” said Gary Gillette, a SALES SUPPORT Suzanne Janik, YahNica Crawford $56 million deal with the White Sox $142 million deal with Boston on that was otherwise lacking. Detroit-based author, co-editor of AUDIENCE DEVELOPMENT MANAGER on Dec. 2. Dec. 8. Candice Yopp That may be providence in addi- the ESPN Baseball Encyclopedia Ⅲ Stats: Hitting just .162, and his Ⅲ Stats: His hitting dropped to MARKETING COORDINATOR Jenny Griffith tion to savvy maneuvering. and board member of the Society for 160 strikeouts in just 110 games .251 this season, and he has just PRODUCTION MANAGER Wendy Kobylarz “The play of Fister also seems PRODUCTION SUPERVISOR Larry Williams are fifth-most in the majors this 17 stolen bases despite averaging American Baseball Research. season. 51 a season. somewhat lucky,” said David “Taking Brandon Inge, Magglio CUSTOMER SERVICE Berri, a sports economist and asso- Ordoñez, and the second baseman- Sources: MLB.com, Cot’s Baseball Contracts, baseball-reference.com MAIN NUMBER: Call (877) 824-9374 or write ciate professor of applied econom- du-jour out of the everyday lineup [email protected] ics at Southern Utah University. and replacing them with Wilson SUBSCRIPTIONS $59 one year, $98 two years. Out of state, $79 one year, $138 for two years. “Fister was brought in as a bet- Betemit, Delmon Young, and Ra- Outside U.S.A., add $48 per year to out-of-state ter fifth starter. And now he is the rate for surface mail. Call (313) 446-0450 or mon Santiago has been a major fac- (877) 824-9374. second-best pitcher on the staff. If tor in the club’s late-season surge.” SINGLE COPIES: (877) 824-9374. he can do this in the playoffs — a REPRINTS: (800) 290-5460, ext. 125; Playoff payoff: Nearly $5M per game big if — then the Tigers are going (717) 505-9701, ext. 136; or rosie.hassell (Nearly) blank check @theygsgroup.com. Each Detroit Tigers playoff game were no baseball games. to be very hard to beat.” TO FIND A DATE A STORY WAS PUBLISHED: at Comerica Park during the The Tigers are in a race with the Dombrowski said Fister wasn’t Owner Mike Ilitch has given (313) 446-0367 or e-mail [email protected]. American League Divisional Se- Texas Rangers to determine home- intended to be the No. 5 starter. Dombrowski the financial latitude CRAIN’S DETROIT BUSINESS IS PUBLISHED BY “We were more talking about CRAIN COMMUNICATIONS INC. ries will generate $4.8 million in field advantage for the first playoff to spend what he deems appropri- CHAIRMAN Keith E. Crain direct and indirect economic im- round, which is a best-of-five se- how he completed our starting ro- ate on players. (See box, this page.) PRESIDENT Rance Crain pact in Detroit, according to a new ries that begins Sept. 30. tation,” he said. “I don’t think any- “He supports a very hefty pay- SECRETARY Merrilee Crain TREASURER Mary Kay Crain analysis by Lansing-based Ander- And the World Series? one would have designated him a roll; he wants us to win,” Dom- Executive Vice President/Operations son Economic Group LLC. If the Tigers get that far, the fifth starter.” browski said. William A. Morrow Group Vice President/Technology, That’s up from about $4 million best-of-seven championship would The general manager credits his Ilitch on Aug. 8 gave Dombrows- Manufacturing, Circulation per game during Detroit’s 2006 have three games at Comerica scouts and assistants for helping ki a four-year extension through Robert C. Adams Vice President/Production & Manufacturing playoff run. Park (barring a sweep by their Na- identify Fister as a trade target. the 2015 season. Financial terms Dave Kamis The numbers reflect an assumed tional League opponent), and each “We thought he would pitch weren’t disclosed, but it’s known Chief Information Officer Paul Dalpiaz average ticket price of $60 and $47 in game would generate slightly very well, go out there and give us that Dombrowski’s deal to come to Director of Audience Development Operations additional spending per fan (park- more than $10 million in fan seven innings,” he said. Detroit from Florida was a five- Michelle Roth ESPN senior baseball writer and G.D. Crain Jr. Founder (1885-1973) ing, concessions, etc.), according to spending, Watkins said. year, $10 million deal that was ex- Mrs. G.D. Crain Jr. Chairman (1911-1996) Scott Watkins, director of market Each game is assumed to have analyst Buster Olney has called the tended for a year in 2007 and then EDITORIAL & BUSINESS OFFICES: and industry analysis at Anderson. 44,600 fans in attendance and an av- Fister trade the best trade for any for four years starting in 2008. 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 The actual direct spending is pre- erage ticket price of $220 per game American League playoff team. So after all Dombrowski’s Cable address: TWX 248-221-5122 AUTNEW DET dicted at $2.9 million for an estimat- (up from $215 in 2006) — and a bit of moves and Ilitch’s spending, will CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly, except for a special issue the ed 43,400 fans per game, and the re- gouging on parking in downtown Hit or miss it be enough to win the team’s first third week of January, a special issue the fourth mainder is indirect spending on lots. World Series since 1984? week of August, and no issue the third week of December by Crain Communications Inc. at 1155 things like food at downtown restau- People also tend to be happier Dombrowski’s moves have gen- The game’s insiders think it’s Gratiot Ave., Detroit MI 48207-2732. Periodicals rants before or after the game. and willing to buy beers, conces- erally drawn praise this season be- possible. postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send address changes to The calculation also includes 40 sions and merchandise. cause they’ve largely worked out. “This is a team that has gelled CRAIN’S DETROIT BUSINESS, Circulation percent of the ticket prices going “It becomes much more of a cele- “Sometimes you’re fortunate late in the year. This is a danger- Department, P.O. Box 07925, Detroit, MI 48207- with the moves you make,” he said. 9732. GST # 136760444. Printed in U.S.A. to , Watkins bration and occasion for people to ous team,” Gillette said. Entire contents copyright 2011 by Crain said, and a 15 percent discount for spend money at the games,” This year’s transactions amelio- Bill Shea: (313) 446-1626, Communications Inc. All rights reserved. Reproduction or use of editorial content in any spending that otherwise would Watkins said. rate some of the criticism leveled at [email protected]. Twitter: manner without permission is strictly prohibited. have occurred downtown if there — Bill Shea Dombrowski for deals that haven’t @bill_shea19 20110919-NEWS--0030-NAT-CCI-CD_-- 9/16/2011 6:18 PM Page 1

Page 30 CRAIN’S DETROIT BUSINESS September 19, 2011 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF SEPT. 10-16

Detroit’s a top 10 town for Carolina men’s basketball Mayor Dave Bing’s UM students teams on the flight deck of plan to shift Detroit’s man- happy young professionals the USS Carl Vinson air- agement of the Woodward Oakwood, craft carrier Nov. 11. Fi- According to CareerBliss, to help ease Avenue light-rail project an employment website, De- nancial terms were not dis- from the Detroit Department closed. troit’s young professionals of Transportation to the qua- are among the happiest in morgue Michigan Meijer Inc. si-public Henry Ford the country. workers have approved a Detroit Eco- A survey of people with new labor contract that in- nomic full-time employment for 10 workload cludes wage and benefit im- Growth years or less revealed that provements. Corp. rais- Detroit’s 3.607 rating on a he Wayne County Com- The Web address es uncer- up for awards five-point scale places it mission is expected www.borders.com soon tainty T Thursday to autho- may take Web browsers to sixth in the country. about how akwood Healthcare in their professions. The survey measured rize the busy Wayne County www.barnesandnoble.com the move Inc. and Henry Ford The campaign, developed Medical Examiner’s Office to as New York City-based eight factors related to Bing will affect O Health System are by Team Detroit, includes on- share services with the Uni- Barnes & Noble Inc. has ac- workplace happiness: construc- two of six health care orga- line video spots added growth opportunities, com- versity of Michigan. The deal quired the customer infor- tion timing and federal nizations nationally that Face- weekly to Carhartt’s pensation, benefits, work- is intended to save the mation, Internet addresses funding. Bing’s office de- are up for the prestigious book page, plus some limit- life balance, career ad- county $1.5 million over and a range of other clined to comment on Malcolm Baldrige National ed print media buys. vancement, senior three years and reduce the unidentified intellectual specifics of the change. Quality Award in the health The Madvins’ “Icon” pro- management, job security morgue’s workload, said property assets in a liqui- Former Detroit Red care division. file should upload sometime and whether they would Wayne County Executive dation auction for what’s Wing Darren McCarty is go- Kalamazoo-based Bronson in October. Axiom Glass recommend their employer Bob Ficano. It was a nonbid left of Borders Group Inc. ing to work at Detroit- Methodist Hospital won the makes decorative art, sculp- to others. Respondents were contract. based American Jewelry and award in 2005. tures and collectibles from surveyed between 2010 and It is expected that gradu- Loan, which is featured in More than 40 health care LANSING blown glass. 2011. ate students will likely per- the truTV series “Hardcore organizations applied for Other cities to make the form services as part of Sixty-one percent of Pawn.” McCarty’s role the 2011 award, which will top 10 were Redmond, their education. voters surveyed by Glengar- wasn’t defined. be announced in late No- Plante & Moran loses ‘&’ Wash.; Fort Lauderdale; Or- iff Group Inc. said Gov. Rick The Detroit People vember by President Barack Southfield-based Plante & lando; Charlotte, N.C.; Cam- Snyder and the Legislature Mover’s Greektown station Obama. ON THE MOVE Moran PLLC, the nation’s bridge, Mass.; Sacramento; are moving the state in the was renamed after its new 12th-largest accounting and Boston; Long Beach, Calif.; Doug Ross will become right direction and that it sponsor, MetroPCS Commu- Carhartt ‘Icon’ campaign consulting firm, is shorten- and Minneapolis. the new chief innovation of- is necessary to eliminate nications Inc. It’s the People ing its name. No, it’s not do- highlights glass art maker ficer of the Detroit Public the personal property tax Mover’s first naming- ing what a lot of accounting Daimler hosts confab Schools charged with im- on business to keep grow- rights sponsorship. What’s a more iconic rep- firms and law firms have proving graduation rates ing jobs in the state. The Wyandotte has signed resentation of the Motor done in recent years, adopt- for its female execs and college readiness, the survey, announced by Busi- a consent agreement with City’s working ing a one- district’s emergency manag- ness Leaders for Michigan, the U.S. Environmental Pro- Daimler AG has brought class muscle and name brand. er, Roy Roberts, anounced. said the tax and budget re- tection Agency to repair its about 260 of its female man- virtues than a It’s dropping General Motors Co. ad- forms made by the gover- power plant, which has agers and executives from glassblower who its amper- viser Bob Lutz has signed on nor and lawmakers were been violating the Clean 11 countries around the makes collectible sand. Jeff An- as general finance chairman necessary — 35 percent of Air Act since 1997. The city world to Detroit for an an- art? taya, partner for Republi- all voters think they were will pay $112,000 in fines nual in-house conference to- and chief can U.S. very necessary. within 30 days and spend It fits, accord- day through Wednesday at ing to Dearborn- marketing Senate can- Michigan’s Medicaid about $210,000 to bring the the Westin Book Cadillac. didate Clark program could spend $30 plant up to regulatory com- based workwear officer, says The conference, which is Rob (left) and Andy Madvin Durant, AP million more during the pliance. manufacturer the move put on by the Mercedes-Benz and distributor makes the reported. first year if the Legislature Construction is set to Financial Services division, Detroit approves bills to change start on a $12 million Carhartt Inc., which has cho- company consistent with aims to improve the skills sen owner Andy Madvin of Ax- newer technologies. For ex- native Paul the state’s no-fault automo- building at the southeast women managers need to Castillo will bile insurance law to allow corner of Cass and Can- iom Glass LLC in Detroit’s ample, the symbol can’t be advance their careers. Russell Industrial Center used in Web addresses. Lutz be the new drivers to pick different field avenues in Midtown The event alternates be- CFO of the coverage levels for person- that will have 58 residen- and brother Rob Madvin, for It also will make the com- tween Detroit and Dallas- University of Michigan Health al injury protection, said a tial units and 11 retail the Detroit installation of pany consistent with its Fort Worth. Until this year, System, pending approval by study by Public Sector Con- spaces. Leasing will start its ongoing “Everyday subsidiaries, which don’t it has been focused on Mer- the university’s board of re- sultants for the Coalition this year, with occupancy Icon” online and print me- use the ampersand, and cedes managers, but Daim- gents. Castillo, CFO of UPMC Protecting Auto No-Fault. targeted for fall 2012. One- dia campaign. with the firm’s logo and ler decided it was a good fo- Presbyterian Shadyside in Unions representing bedroom units will start at Carhartt earlier this rum to help managers at building signs. Pittsburgh, Pa., replaces state workers and Michi- $675 a month. month launched a 10-week other divisions as well. Antaya says he doesn’t Dave Morlock, who took a job gan government officials TEDxDetroit, an inde- campaign profiling individ- Speakers include former expect any further shorten- at Chicago-based Accretive are seeking help from the pendently organized local ual tradesmen and craft Nike VP Marilyn Tam, and Bri- ing, no matter how trendy. Health. Michigan Civil Service Com- version of the national workers nationwide who an Uzzi, a professor at North- The “Moran” is here to Michele Kirkland was mission with their ongoing TED (technology, enter- have used Carhartt clothing western University. stay. named vice president of en- contract talks for the 2012- tainment, design) confer- ergy operations for Con- 13 fiscal year, AP report- ences aimed at generating sumers Energy Co., effective ed. ideas on a broad set of top- Oct. 1. She succeeds Rufus ics, will hold a conference Gladney, who recently died. 8 a.m.-6 p.m. Sept. 28 at the OTHER NEWS Max M. Fisher Music Center. COMPANY NEWS The U.S. Postal Service The event is free, but a $26 BEST FROM THE BLOGS is considering closing De- donation is encouraged. Detroit-based Quicken troit’s Fort Street process- Michigan State Universi- READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS Loans Inc. said it will hire ing center as part of a na- ty’s board of trustees has 500 employees to help with tionwide cost-cutting approved a plan to build a Incentive program has a catch Visteon eyes sale of campus rising loan volumes. The effort. Six other Michigan $40 million bioengineering news came as data from centers are targeted: Lans- center on the south end of Executing these Talking to some Farmington Hills-based Re- ing, Jackson, Kalamazoo, campus. A date hasn’t been great“ big ideas is more brokers,“ informally, alcomp II Ltd. showed the Iron Mountain, and two in set for construction to complicated than you’d they say it’s going to be number of homes sold in Saginaw. start. A $30 million capital think. The (live-in- hard to come up with a August in metro Detroit The Detroit Economic outlay was approved last Detroit) incentives … price on that building. year by the state. are considered taxable And harder to find the beat July by 10.5 percent Growth Corp. has rejected income and are taxed buyer. and was up 19.4 percent an offer by Chevrolet to fix at the same rate as the over August 2010. Also, up the baseball diamond at recipient’s regular ” Quicken has bought the the former Tiger Stadium OBITUARIES income. rights to be the title spon- site for use by youth Kurt Ziebart, inventor sor of the inaugural 2011 ballplayers, AP reported. of the rust-proofing Reporter Nancy Kaffer’s blog on the” city of Detroit Reporter Dan Duggan’s blog on commercial real estate Carrier Classic, which will City officials hope for a process that bears his and small business can be found can be found at www.crainsdetroit.com/duggan pit the Michigan State Univer- major redevelopment pro- name, died Sept. 12. He at www.crainsdetroit.com/kaffer sity and University of North ject instead. was 91. DBpageAD.qxp 9/8/2011 4:40 PM Page 1 DBpageAD.qxp 9/2/2011 3:27 PM Page 1

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