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Page 3 McLaren’s next move could Creative be Senate bill or CON appeal recruiting unleashed Auto to engineers: Good pay, Brothers mean business flexible hours, bring the dog when it comes to art BY LINDSAY CHAPPELL 40 Under 40 CRAIN NEWS SERVICE Carla Bailo winces at what she is thinking about doing to recruit and keep automotive MATTHEW FRANKLIN engineers at her company. Mayoral candidate and Detroit Medical Center CEO Mike Duggan meets Wednesday with MorningSide She may offer to let them Community Organization President O’Dell Tate on Detroit’s east side. bring their pets to work. “If it’s a little lap dog, I really don’t care,” she said with a sigh. “If there’s any- thing I can do to show that auto is a great place to A Duggan-Bing race work, I need to do that.” From growing their Threatened by a chronic companies to safeguarding shortage of engineers — the Internet, Crain’s 2012 exacerbated by years of in- Where dustry restructuring — “ honorees have tested auto companies are having did all the could be pricey for biz trouble filling job vacan- their mettle, Pages 11-35 cies here now that the in- engineers dustry is returning to This Just In health. That is particularly go? ... Combined total spending could top $10M alarming for metro De- troit, a massive engineer- How do Flagstar to face trial after BY BILL SHEA Duggan, a former Wayne ing hub for the industry. summary judgment denied CRAIN’S DETROIT BUSINESS County prosecutor who cut To deal with the short- we get his political teeth as the pro- age, auto companies are Troy-based Flagstar Bancorp The still theoretical — but very possible — tégé and powerful chief lieu- trying new recruiting tech- them Inc. will go on trial Oct. 9 in a mayoral race confrontation between Detroit Med- tenant to the late Wayne niques and changing work- lawsuit seeking at least $82.4 ical Center CEO Mike Duggan and incumbent County Executive Ed McNa- place practices. And for back? million in damages, after the Dave Bing could split the financial support of De- mara, filed paperwork last jobs that are still years ” written opinion Tuesday by troit’s business community in an election that week to run and formed an away, they are even reach- Darlene Trudell, Judge Jed Rakoff of the U.S. Dis- could see historic levels of campaign spending. exploratory committee. ing out to schoolchildren Engineering trict Court in New York. Bing and Duggan both have deep ties to the Bing, who won the job in — some as young as Society of Detroit The suit was filed by New city’s corporate community. And if they offi- special and general elections Bing kindergartners — to plant the notion of an York City-based Assured Guar- cially decide to run next year, donors will be in 2009, hasn’t announced whether he’ll seek a engineering career. anty Municipal Corp. alleging forced to choose on whom to spend their cash. second four-year term. He came to power with Bailo, Nissan North America’s senior vice that Flagstar breached con- Political watchers say that if the two do go head tracts insuring nearly $1 bil- to head, things could get expensive. Fast. See Choice, Page 38 See Recruiting, Page 40 lion in securities backed by home equity loans in 2005 and 2006. In February, Rakoff denied a Flagstar motion for a sum- mary judgment. The opinion Fisher seeks investors who want to make social impact issued Tuesday said Flagstar’s arguments to dismiss the case BY SHERRI WELCH ing investments — in addition to were “without merit.” Of in- CRAIN’S DETROIT BUSINESS grants — in work related to their terest is that New York fi- missions for years. What if money invested in orga- nancier Wilbur Ross Jr. owns 8 But Phillip Fisher, founder of nizations working to improve so- percent of Assured Guaranty’s Mission Throttle L3C and vice chair- cial conditions could be rede- parent, Bermuda-based As- man of the Max M. & Marjorie S. ployed over and over, while sured Guaranty Ltd. Ross is also a Fisher Family Foundation, hopes to providing a financial and social- major investor in one of attract a new class of investors, impact return for those supporting Flagstar’s competitors, Troy- from individuals to corporations the work? based Talmer Bank and Trust. and government, to support Michi- The concept isn’t new; a few — Tom Henderson gan-based social-impact efforts large foundations have been mak- and social entrepreneurs through investments in a new social-im- pact fund that he hopes will attract $10 million to $50 million. That, experts say, is a game changer. “After my father died (in 2005), I settled upon a life’s course to mate my capitalistic principles with my KENNY CORBIN NEWSPAPER philanthropic soul,” said Fisher, Phillip Fisher plans to create a fund to work on social issues and support social See Fisher, Page 41 entrepreneurs. 20121001-NEWS--0002-NAT-CCI-CD_-- 9/28/2012 4:22 PM Page 1
Page 2 CRAIN’S DETROIT BUSINESS October 1, 2012
MICHIGAN BRIEFS After crunching the numbers, million, according to the Michigan Department of Agriculture and Rural Kellogg sets up China venture We all scream for ice cream – after the initial shock Development. Two-thirds of those So how do you say “gr- trees ship out of state. rrrrrrrreat!” in Chinese? When Rob Bliss and Jeff Bar- YouTube right now. (Or at least Someone at Battle Creek-based rett fielded questions from you could as of Friday.) MICH-CELLANEOUS Kellogg Co. may want to get on that Crain’s Michigan Business re- Bliss and Barrett teamed on the after the announcement last week cently about their Pure Michigan video with Wayland-based Denali Ⅲ Lansing-based Demmer Corp. by the largest maker of breakfast video highlighting the great Flavors, operated by Wally Blume has laid off about 200 workers, the cereal in this country that it would things in the Great Lakes State, and his wife, June. Denali, which Lansing Economic Area Partnership set up a joint venture to distribute perhaps one question should clams $80 million in annual sales, Inc. confirmed. Demmer, which cereal and snacks in the largest po- have been, “So you got permis- is perhaps best known for the employs about 700 in several Lans- tential consumer: China. sion to use the song ‘Good Time’ Moose Tracks ice cream flavor. ing-area plants, makes compo- Kellogg’s 50-50 joint venture with in the video, right?” As for the video … although a nents for the automotive, aero- Because after less than two couple of the kids featured seem to space and defense industries. Singapore-based Wilmar International The initial taste of ice cream: First Ltd. includes manufacturing and weeks and nearly 2 million views comes shock, then … awe. be a bit old to have been deprived Ⅲ Kalamazoo-based Stryker Corp. sales of the Kellogg’s and Pringles on YouTube, the video was pulled of ice cream (where’s the Geneva stopped selling three versions of its brands. The venture is subject to while Bliss and Barrett of Grand Rapids-based Sta- Convention when you really need it?), the reaction Neptune Waste Management Sys- regulatory approval. tus Creative worked out a deal to use the song. Talks of the first kid featured in the one-minute, 20-second tem after two people were harmed, Kellogg’s Asia-Pacific division were proceeding as of Friday. video is, well, look at the accompanying photos. You one fatally, using the devices, which accounted for 7.1 percent of rev- One question Bliss and Barrett were asked was get the feeling that henceforth, this kid isn’t gonna were sold without formal clearance enue last year, according to about their next project — a video titled “Kids Tast- settle for strained peaches. by U.S. regulators. The device col- Bloomberg data. The country’s ing Ice Cream for the First Time.” You can find it on — Bob Allen lects and disposes of surgical waste. snack food market is expected to reach an estimated $12 billion by liftoff and landing pads for heli- would have to be carved in a can- al Christmas Tree Association, Michi- Find business news from the end of the year, Kellogg CEO copters, and observers say the tac- taloupe or that your ornaments gan trails only Oregon and North around the state at crainsdetroit John Bryant said in the statement. tic could spread statewide, the Tra- would have to adorn a holiday tree Carolina in production of real .com/crainsmichiganbusiness. verse City Record-Eagle reported that looks as if it descended from trees. Michigan’s 700 farms harvest Sign up for Crain's Michigan Did wind turbine foes stir up last week. Benzie County’s Joyfield the odd marriage of a whisk broom about 3 million trees a year, with a Business e-newsletter at crains Township once was considered part and Astroturf, take a big exhale. wholesale value of more than $40 detroit.com/emailsignup. sudden demand for heliports? of a site for a proposed wind farm. Growers say the crushing effects Among the ways to block the en- The community of 800 soon could of Michigan’s roller-coaster weath- croachment of wind turbines on have up to eight heliports. er won’t hurt the availability of ei- CORRECTIONS your favorite landscape, you could ther Halloween pumpkins or Ⅲ Detroit law firm Foley & Lardner LLP’s corporate designator was incor- take the traditional approach em- Christmas trees. rect in Rumblings on Page 26 of the Sept. 24 edition. ploying persuasion and statistics. Christmas tree, pumpkin crops The Christmas tree casualties Ⅲ An article on Page 11 of the Sept. 24 issue should have said that Altarum Or you could take out a permit to were the tiny seedlings planted this Institute President and CEO Lincoln Smith’s 2008 total compensation in- build a heliport, the tack being used fine; let the holiday sales begin year, not the mature trees that will cluding full bonus would have been $619,467. Altarum’s 2008 IRS Form 990 in the northern Lower Peninsula. If you’ve been worrying that be harvested for the coming holi- only included three months of bonus because of a change in fiscal year. Turbines can’t be built near the this year’s jack-o’-lantern face day season. According to the Nation-
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October 1, 2012 CRAIN’S DETROIT BUSINESS Page 3 McLaren, Kowall mull next move Inside McLaren to move 200 beds from its Pontiac hos- Committee wouldn’t back new hospital pital to the proposed facility near Clarkston. BY JAY GREENE need regulations regarding the construction of There weren’t enough votes CRAIN’S DETROIT BUSINESS some health facilities and the purchase of med- for that in the Kowall-chaired ical technologies. Economic Development Com- McLaren Health Care’s proposed Independence But in an interview Thursday, Kowall said mittee, so he dropped the pro- Township hospital may get new life this month he hasn’t decided whether to introduce the bill vision for the time being. if state Sen. Mike Kowall can persuade the full as an amendment or allow McLaren to go Jeff Timmer, a spokesman Senate to approve what his committee and the through the CON appeals process. for McLaren on the legisla- Michigan Department of Community Health would “A lot of people think they know what I will tion, said Kowall “pulled it to not. do. I haven’t talked with (McLaren CEO) Phil live to fight another day.” Kowall Kowall, R-White Lake Township, is expected Incarnati yet,” he said. Timmer is a partner in Lans- to offer an amendment to Senate Bill 1269 when Under the bill, Kowall wanted to widen the ing-based Sterling Corp. Ford work boosts minority that chamber next meets Oct. 17, sources have radius permitted to move hospital beds from told Crain’s. The bill would revise certificate of two miles to eight. That would have enabled See McLaren, Page 37 supplier DMS, Page 6
Company index These companies have significant mention in this State stalls week’s Crain’s Detroit Business: 4731 Arts Incubator & Gallery ...... 39 Arboretum Ventures ...... 21 Bank of America ...... 26 Barton Malow ...... 19 prospect for BBK Ltd...... 6 Beaumont Health System ...... 17 Bejin Vanophem & Bieneman ...... 4 Benzinga.com ...... 22 Blue Cross Blue Shield of Michigan ...... 4, 7, 13 MBT-related Brooke Kushman ...... 4 Business Leaders for Michigan ...... 38 Butzel Long ...... 17 Clark Hill ...... 19 Colliers International ...... 14 tax refunds Continental Automotive Services ...... 40 Council of Michigan Foundations ...... 41 Detroit Design Center ...... 39 Detroit Economic Growth ...... 17 At issue: Rules Detroit Manufacturing Systems ...... 6 Detroit Medical Center ...... 1 Detroit Regional Chamber ...... 22, 38 for deductibles Diversity Connections ...... 6 DuoSecurity ...... 29 Dynamic Advisory Services ...... 14 BY AMY LANE Economic Alliance for Michigan ...... 37 SPECIAL TO CRAIN’S DETROIT BUSINESS Engineering Society of Detroit ...... 40 Faurecia North America ...... 6 For a while this summer, it Fifth Third Bank ...... 32 looked as if a bill moving through Fontinalis Partners ...... 32 the Legislature might open the FordDirect ...... 13 door to, by one state estimate, hun- General Motors ...... 37 NATHAN SKID/CRAIN’S DETROIT BUSINESS George Matick Chevrolet ...... 34 dreds of millions of dollars in busi- Israel (left) and Erik Nordin created a blown glass coral reef for this saltwater aquarium at the Detroit headquarters of Green Dot Stables ...... 16 ness tax refunds. Rock Ventures LLC. Henry Ford Health System ...... 31 But it is not to be. iRule ...... 13 The Snyder administration has LG Chem Power ...... 17 Livernois Motorsports and Engineering ...... 20 jettisoned that prospect, leaving Max M. and Marjorie S. Fisher Family Foundation . . 1 disagreement over the deductibili- McLaren Health Care ...... 3 ty of materials and supplies in the The business of art: Metis Sports Management ...... 18 now-defunct Michigan Business Metro Detroit AFL-CIO ...... 20 Tax to simmer and possibly head Michigan Assoc. of Certified Public Accountants . . 41 Michigan State University ...... 40 for final resolution in the courts. Miller, Canfield, Paddock and Stone ...... 33, 41 In its original form, Senate Bill Mission Throttle ...... 1, 41 1037 broadened a definition for ma- Brothers sculpt a career Molly Maid ...... 26 terials and supplies to include all National Food Group ...... 35 materials and supplies and not just New Urban Learning ...... 25 Nissan North America ...... 1 those used in the production or Managing father’s steel companies gave artists a solid base Powerlink Facilities Management Services ...... 26 management of inventory or the Ray Laethem Motor Village ...... 19 operation or maintenance of as- BY GARY ANGLEBRANDT dent artists is why they have been Rock Ventures ...... 3 Rossetti Associates ...... 39 sets. SPECIAL TO CRAIN’S DETROIT BUSINESS able to make a career out of it. The narrower definition was the Rush Group ...... 6 What we create is They make custom pieces, small St. John Providence Health System ...... 15 Michigan Department of Treasury’s If the names Erik and Israel “ and large, using a variety of mate- Scenaria ...... 30 interpretation of the legislation Nordin sound familiar, maybe it’s whatever our rials, to suit indoor and outdoor Skillman Foundation ...... 21 that created the MBT and was used because they were semifinalists spaces for clients. Speyside Equity ...... 30 over the four years of the tax’s ex- in last year’s customer needs. One job last year took six Tapper’s Fine Jewelry ...... 30 TechTown ...... 18 istence. inaugural ” months. It involved blowing more WEB EXTRA Velocity Cow ...... 34 But even though the tax ended Hatch Detroit Erik Nordin than 100 pieces of colored glass ViSalus ...... 13 Jan. 1 when it was replaced by Q&A: College for contest for made to look like a coral reef to go The Whitney ...... 39 Michigan’s new corporate income Creative Studies’ their idea to State University’s National Public Ra- in an aquarium. The client was Workforce Intelligence Network for SE Michigan . . 17 tax, businesses have been and are Gilda Snowden on open a store dio outlet. Rock Ventures LLC, to take part in still filing MBT returns and start- the business of selling furni- Or it could be the natural result the outfitting of the company’s Department index ing to be audited. being an artist, ture that of 12 years of hard work as profes- new headquarters in the Com- crainsdetroit.com So the clarification on materials they make. sional artists who keep as much puware Building. CALENDAR ...... 10 and supplies definition remains Or be- of a watchful eye on their busi- The Nordins had sent their CLASSIFIED ADS ...... 37 important to businesses. cause this year, WDET 101.9 FM ness discipline as they do on their portfolio to Quicken Loans Inc., one JOB FRONT ...... 36 “That issue is a universal issue has been broadcasting their custom works of wood or glass. of the Rock Ventures companies, KEITH CRAIN...... 8 names as part of a six-month The brothers say working hard See Refund, Page 41 sponsorship they paid to Wayne on the business of being indepen- See Brothers, Page 39 LETTERS...... 8 MARY KRAMER ...... 9 OPINION ...... 8 Crain’s Michigan Business Business events OTHER VOICES ...... 8 During any given week, useful events are held THIS WEEK @ Sign up for the roundup of statewide news PEOPLE ...... 36 delivered to email inboxes every throughout the region. Go to crainsdetroit.com WWW.CRAINSDETROIT.COM Wednesday: crainsdetroit.com/getemail. /section/events to see what’s happening. RUMBLINGS ...... 42 WEEK ON THE WEB ...... 42 20121001-NEWS--0004-NAT-CCI-CD_-- 9/28/2012 4:26 PM Page 1
Page 4 CRAIN’S DETROIT BUSINESS October 1, 2012 New patent law firm follows rule
AT KP - WE’RE A TEAM. WHEN WE PARTNER WITH YOU ON A PROJECT YOU BECOME AN EQUAL PART OF of real estate: location, location THE TEAM. WE WORK TOGETHER TO ENSURE A QUALITY
PRODUCT IS DELIVERED ON TIME AND ON BUDGET. BY DUSTIN WALSH being a Detroit firm. gan because of the innovation that CRAIN’S DETROIT BUSINESS “I won’t deny that there is a mar- goes on here, but this new office keting aspect to it, but it’s more makes it an even better place to be BOB ROSE IS THE NEWEST MEMBER OF THE KP SALES For Thomas Bejin, the idea to than that,” he said. “This is a rela- a patent lawyer,” he said. “I expect & MARKETING TEAM. HIS ENERGY AND PASSION FOR start a patent law firm in Detroit tionship business, and the ability more satellite offices from bigger solidified July 12 at a gala event at to walk 100 feet to talk with the ex- firms to come in and try to take ad- THE PRECAST INDUSTRY IS WHAT SETS BOB APART. Henry Ford Museum to celebrate the aminers and build a relationship, vantage of getting quick service in BOB’S GUIDANCE IN THE DESIGN AND PLANNING grand opening of the Elijah J. McCoy which can help a client’s patent get Detroit rather than fight the traffic OF YOUR PROJECT WILL ENSURE AN EXCEPTIONAL U.S. Patent and Trademark Office on processed, that’s the return on in- in Northeast Virginia (at the USP- Detroit’s riverfront. vestment we can give clients.” TO headquarters).” PRECAST EXPERIENCE FROM THE START. CONTACT The black-tie event drew hun- The USPTO opened the 31,000- Mark Cantor, president of BOB TO LEARN HOW PRECAST COULD ENHANCE YOUR dreds from the various patent law square-foot satellite office in the for- Southfield-based intellectual prop- firms around Southeast Michigan mer Stroh Brewery headquarters to erty firm Brooks Kushman PC, said NEXT PROJECT! and the Midwest, and over drinks cut expenses and time to file a the patent office will provide a new it became evident there was oppor- patent for inventors and companies. recruiting ground for area patent tunity, he said. The organization has recognized firms — despite Kushman losing Bejin, a partner at Bloomfield that holding in-person interviews three lawyers to the office earlier Hills patent firm Rader Fishman & with its examiners, through the this year. Grauer, left the company last First Action Interview Pilot Pro- Brooks Kushman hopes to bene- month and with four partners gram, expedites the process. fit by hiring examiners, who often formed the first patent firm within An internal evaluation at USP- attend law school at night, Cantor Detroit’s city limits. TO found among those who use the said. The firm, Bejin Vanophem & Bi- early interview program, 29.4 per- “It’s hard to find lawyers experi- eneman PC, signed a lease last week cent get through the first approval enced in patent examining,” he for 4,000 square feet at 300 River process, versus 11 percent for said. “We hope we’ll have these ex- Place South, Suite 1650 — a mere those who take the normal applica- aminers turned lawyers in the floor away from the Detroit patent tion route and don’t use the pro- years to come.” office in Suite 2900. gram. Bienemen was a former patent “There were lawyers from all Erik Gordon, clinical assistant examiner at the USPTO’s head- over the Midwest and elsewhere, professor in entrepreneurship and quarters in Virginia. and there was genuine enthusiasm technology commercialization at Bejin Vanophem & Bieneman about the patent office locating in University of Michigan, said he ex- plans to hire additional lawyers by Detroit,” Bejin said. “So I got to- pects an increase in patent next year, Bejin said. WWW.KERKSTRA.COM gether with some other friends and lawyers in Southeast Michigan. Dustin Walsh: (313) 446-6042, lawyers, and we thought there was “We’ve always had good patent [email protected]. Twitter: a real opportunity to get a group of lawyers here in Southeast Michi- @dustinpwalsh patent lawyers in Detroit.” Bejin partners include John Vanophem, former partner at Pon- tiac-based Dobrusin & Thennisch PC; Charles Bieneman, former partner The Data Privacy Challenge at Rader Fishman; Daniel Henry, owner of Troy-based Henry Patents We have the team for that. PLLC and former partner at Honig- man Miller Schwartz and Cohn LLP; and Chris Falkowski, owner of Falkowski PLLC The average cost of a data breach is and former partner at Honigman. in the millions of dollars. Our legal Bejin said the proximity to the team takes a comprehensive approach patent office provides a strong sell- to data privacy and network security ing point, along with the cache of to minimize risk and ensure an appropriate response. The stakes are high. We are focused on providing insight about best Blue Cross signs agreement practices and foresight for the data privacy issues on to sell Southfield complex the horizon. Blue Cross Blue Shield of Michigan What’s that has signed a purchase agreement to sell its four-building, 700,600- ticking sound? square-foot office complex in Southfield for an undisclosed price to a Canadian investment compa- Given the changes in the financial ny that plans to lease it to at least marketplace, your life insurance policies one major tenant, Crain’s has learned. may not be performing as intended. Blue Cross spokesperson Helen Stojic confirmed the purchase A periodic analysis and review can: agreement was signed, but she de- clined to disclose the buyer. • Save premium dollars “We are in the process of work- • Improve, extend or guarantee ing to close the transaction and ex- your coverage pect to complete it before the end of the year,” Stojic said in a state- • Generate cash ment. • Make sure your plan is on track The Blue Cross building com- plex, said to need repairs and up- McDonald Hopkins PLC grading, is at 26900-27300 W. 11 39533 Woodward Ave., Suite 318, Bloomfield Hills, MI 48304 • 248.646.5070 Mile Road. When it hit the market Call for a complimentary analysis and review. Carl J. Grassi Stephen M. Gross early in 2011, the building had an President Detroit Managing Member asking price of $13.8 million — a fraction of the estimated $123.8 Chicago • Cleveland • Columbus • Detroit • Miami • West Palm Beach million it would cost to construct a mcdonaldhopkins.com comparably sized building. BIRMINGHAM, MI 248.731.9500 WWW.SCHECHTERWEALTH.COM — Jay Greene DBpageAD.qxp 7/27/2012 10:01 AM Page 1
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Page 6 CRAIN’S DETROIT BUSINESS October 1, 2012 Minority-owned DMS grows with Ford work BY DUSTIN WALSH mainder of Building A, which had instrument panels for the Ford CRAIN’S DETROIT BUSINESS been occupied by Technicolor Inc. Mustang, to Ford’s Flat Rock As- for warehousing. sembly Plant on July 30. Minority-owned supplier Detroit DMS will invest $10 million this DMS will launch instrument Manufacturing Systems LLC is ex- year expanding its line, including panel assembly of the Ford Tau- pected to announce today that it injection molding equipment and rus and Explorer in December, will expand its operations by the addition of 10 docking bays, followed by a shift for the Ford F- 200,000 square feet at its plant in said Wade Phillips, COO and for- 150 in February. It will launch the Gateway Industrial Center. mer vice president of manufactur- second and third shifts for the F- DMS, a joint venture between ing and engineering at Faurecia 150 in March and April, respec- Wayne-based Rush Group Ltd. and North America. tively. the North American subsidiary of A portion of the expansion will At the end of April 2013, DMS French component supplier Faure- be used to start the first and sec- will launch panel assembly for the cia SA, is taking over the space as ond shift lines to assemble instru- Ford Flex and the Lincoln MKT its Ford Motor Co. instrument panel ment panels for the Lincoln Navi- and MKS. It will begin shipment business grows. gator and Ford Expedition, which for the Ford Focus in July 2013, GLENN TRIEST The joint venture will now occu- will begin shipment Oct. 10, Phillips said. COO Wade Phillips talks with Plant Manager Saundra Marion at Detroit py 480,000 square feet in the indus- Phillips said. To become more cost-effective, Manufacturing Systems. trial center, taking over the re- DMS shipped its first product, DMS will bring in eight injection molding presses between January and August of next year to begin manufacturing of plastic assem- blies for the new launches. “We’re looking to maintain a competitive advantage by getting manufacturing technology,” Phillips said. “We’re also looking at other core competencies we can bring in-house.” Phillips said the supplier will ship 1.2 million parts in 2013. It expects to invest $29 million over three years into the plant, he said. To meet the new demand, DMS has hired 61 new hourly workers and six new salaried employees since Aug. 1 for a total of 128 em- ployees. The hourly employees are represented by UAW Local 600 in Detroit. CEO Andra Rush told Crain’s in a previous interview that the sup- plier is dedicated to hiring Detroit residents at the DMS plant. Ap- proximately 67 percent of its hourly employees are Detroit resi- dents, the company said in a re- lease. DMS expects to employ 500 by mid-2013. Bill Diehl, CEO of Southfield- based BBK Ltd. and partner at mi- nority-owned business advisory firm Diversity Connections LLC, said automakers are strategically look- ing to expand their minority- owned supply base to capitalize on the growing minority car buyer market. “The diversity initiative has moved from being basically politi- cally based to now economically based,” he said. “The consumer de- mographics are changing so rapid- ly, and their supply base doesn’t mirror their consumer base, and they are working hard to get their supply base more in line.” Ford helped form the joint ven- ture in May to create a large mi- nority-owned supplier — DMS CEO Rush is Native American — and unload its $1.1 billion book of interiors business at its 1.6 mil- lion-square-foot Saline plant. Ford took over the plant from for- mer spinoff Visteon Corp. when that supplier entered bankruptcy in 2009. As a result of the deal, Rush Group controls a 55 percent stake in the joint venture, which will take over about 70 percent of the book of business. DMS is also bidding on supply contracts with other automakers, including General Motors Co., Chrysler Group LLC and Toyota Motor Corp. Dustin Walsh: (313) 446-6042, [email protected]. Twitter: @dustinpwalsh 20121001-NEWS--0007-NAT-CCI-CD_-- 9/28/2012 4:27 PM Page 1
October 1, 2012 CRAIN’S DETROIT BUSINESS Page 7 Senators, Schuette debate need for Blues asset analysis
BY JAY GREENE CRAIN’S DETROIT BUSINESS PROVISIONS OF CONVERSION BILLS LANSING — Several state senators on the Senate Bills 1293 and 1294 would convert Michigan Insurance Committee and others Blue Cross into a nonprofit mutual insurance sparred with Michigan Attorney General Bill company. Provisions include: Schuette last week in a hearing over the need Ⅲ Amending Public Act 350 and allowing for an asset evaluation of Blue Cross Blue Shield Blue Cross to convert into a nonprofit mutual insurance company that would be owned by of Michigan as part of its proposed conversion the company’s approximate 4.4 million into a nonprofit mutual insurance company. policyholders in Michigan and 1.1 million “I want to get (the asset evaluation and en- policyholders in other states. The Blues board abling legislation) done right to make sure must give final approval. the people of Michigan, se- Ⅲ Providing for a nonprofit foundation to be niors and the most vulner- formed early next year with a mission able are not stiffed” by in- designed to improve the health of the people adequate funding for the of Michigan and possibly continue subsidies proposed nonprofit foun- for Blue Cross Medigap policies. dation that would be creat- Ⅲ Blue Cross would lose its state and local ed by the Blue Cross con- tax exemptions, worth an average of $100 version, Schuette said. million with about 95 percent going to the state’s general fund. Legislators heard testi- Ⅲ Individuals and small-business customers mony from opponents and Schuette could save about $200 million a year in supporters of Senate Bills premiums because the subsidies Blue Cross 1293 and 1294 that also would remove Blue are required to collect to fund other lines of Cross as the state’s official insurer of last re- coverage will end. sort and place it under the regulatory control Ⅲ Blue Cross would continue as a carrier of of the state insurance code (See Jay Greene’s last resort until Jan. 1, 2014, at which time blog at www.crainsdetroit.com.) The bills new federal laws will require all insurers to offer Wayne & Joan Webber Cardiac Progressive Care Center were introduced by Sen. Joe Hune, R-Ham- coverage to anyone regardless of health status. Wayne & Joan Webber Imaging Center burg Township, and Virgil Smith, D-Detroit. Ⅲ Allow a health corporation to merge with a Schuette told legislators he is interviewing nonprofit disability insurer. several independent financial consulting Ⅲ Forbid insurers from terminating products firms. He said the evaluation will help legisla- unless conditions are met, including giving tors determine how much Blue Cross is worth the state 90-day notification and How Wayne and Joan Webber and the amount it should be required to trans- policyholders are allowed to purchase other plans. fer to a new nonprofit entity. Gov. Rick Snyder has recommended that Regulation is hiring an independent company are keeping our imaging Blue Cross contribute $1.5 billion of the insur- to issue an opinion on whether the proposal is er’s $2.8 billion surplus into the nonprofit fair for the people of Michigan, said R. Kevin foundation. Snyder has said he wants the Clinton, the state insurance commissioner. on the leading-edge. foundation to fund programs to reduce health While a fairness opinion is appropriate for care costs and increase quality and access of a private company, Schuette said, the people health services. of Michigan’s interest in Blue Cross requires Behind all of our leading-edge imaging and advanced Schuette and Hune, who said they want a more protection. broader health mission for the proposed foun- cardiovascular care are people like Wayne and He said his asset evaluation will be similar dation, said the final amount could be more. Joan Webber. to the process followed when the nonprofit De- But Hune and Sens. Steve Bieda, R-Warren, troit Medical Center was sold in 2010 to for-prof- and Goeff Hansen, R-Hart, questioned it Vanguard Health Systems Inc. of Nashville, Community and business leaders who inspire us by their Schuette on the need for the Blue Cross evalu- and when Marquette General Hospital was sold very commitment to us. By their desire to help people ation. “Blue Cross is not being sold. It is a con- to for-profit Duke Lifepoint in August. version of state assets into a nonprofit mutu- they’ll never meet. Schuette said the evaluation will be com- al,” Hune said. pleted before the Senate and House vote on Schuette, who said he has broad powers to the bills. Snyder said he wants the bills on his Because of their generosity, Beaumont was able to oversee charitable assets in Michigan, re- desk by the end of the year. purchase the latest MRI technology. An even more open sponded: “Is it a sale? No, but it is a distinc- Over the next several weeks, Hune said, he tion without a difference. … We are dealing unit that allows patients access to the most advanced and his committee will make changes to the with the assets (that belong to) the people of bills and will be ready to vote by Oct. 17, the imaging and early detection – with less restriction and Michigan.” next day the Senate meets. Dick Posthumus, a senior adviser in the confi nement. One reason Schuette wants an asset evalua- Snyder administration, disagreed, saying: tion is to ensure the nonprofit foundation has “This is a conversion and not a sale. There is The Webbers also funded a cardiac care stepdown unit enough money to fund health initiatives, es- a difference.” He said a valuation would only that provides state-of-the-art monitoring for patients be needed if the Blues were converting to for- pecially programs that benefit seniors. profit status. Last year, Schuette negotiated a five-year who are critically ill or recuperating from complex Mark Cook, Blue Cross vice president of freeze on Blue Cross Medigap policies that cardiovascular surgeries. governmental affairs, said the state has saves about 200,000 seniors an average of $73 enough financial information already on Blue per month. Hune said that agreement, which Families like Wayne and Joan Webber remind us that it Cross, having completed in May a “deep- expires in November 2016, is part of the bill. dive” audit that covered 2008 to 2010. Blue Cross subsidizes its Medigap policies doesn’t take a medical degree to save a life. All it takes “The bills forbid a sale, and we support through a tax on individual customers and is a heart. that,” Cook said. “We will continue as a non- small businesses, which amounts to $200 mil- profit mutual model that does not require this lion a year. “Blue Cross Medigap policies are type of valuation. If we do go down that path, the gold standard, and we do not want to see then do it.” them go away or spike up in price,” said Mary Despite the disagreement, Hune said he is Ablan, executive director of the Area Agency negotiating with Schuette on the need for the on Aging Association of Michigan. evaluation. He said he hopes to come up with Hune said he plans on adding language to A Not-for-Profi t Provider an amount Schuette could support to enable the bill that will require the nonprofit founda- the foundation to fund programs that would tion to “offset increases in Medigap.” include subsidizing Medicare supplemental Scott Lyon, senior vice president with the insurance policies for seniors. Small Business Association of Michigan, said he “The attorney general and I share the same opposes continuing the Medigap tax on small concerns about Medigap,” Hune said. “I be- businesses. “The foundation should spend the Find out how you can save lives, too. If you would lieve we can reach an agreement on a number $1.5 billion on things to reduce costs for small like to make a gift, please go to our website at that could be more than the $1.5 billion where businesses and all the people of Michigan,” he foundation.beaumont.edu or click on the code we won’t have to do the evaluation and in- said. stead use the (state’s) fairness review.” Jay Greene: (313) 446-0325, with your phone. The state Office of Insurance and Financial [email protected]. Twitter: @jaybgreene 20121001-NEWS--0008-NAT-CCI-CD_-- 9/28/2012 5:06 PM Page 1
Page 8 CRAIN’S DETROIT BUSINESS October 1, 2012 OPINION OTHER VOICES Transit bill deserves Consider city income tax cut In the late 1990s, Mayor currently have a local in- city’s highest performers, those Dennis Archer and the come tax. Most of these most able to find better jobs. city of Detroit agreed to cities levy a standard 1.0 Downtown Detroit is experienc- bipartisan support legislation that would re- percent on residents and ing a boom in demand for rental duce over several years 0.5 percent on nonresi- housing. Several companies partici- e’ve lost count of the times that transit advocates the city income tax — dents. pated in the “Live Downtown” and which was the highest in Detroit started 2012 with “Live Midtown” programs that of- have tried — and failed — to create a regional transit Michigan. the highest rate at 2.5 per- fered financial incentives to move W system in Southeast Michigan. By one count, it’s 24. This automatic cut in cent for residents, 1.25 per- into the city. Businesses able to pur- Maybe 25 will be the charm. the rate has been limited cent for nonresidents and 1 chase buildings at deep recession- Business and civic leaders joined nonprofit and transit ad- by the city not meeting percent for corporations. ary discount prices can relocate em- Daniel Markey vocacy groups last week in pushing the Michigan House to ap- certain financial thresh- Income tax rates affect be- ployees from the suburbs and more olds or city officials winning ap- havior. City tax rates that are sig- than offset the city income tax with prove a bill to create a regional transit authority here. proval of legislation to freeze the nificantly higher than neighboring their low occupancy costs. A similar bill stalled in the Republican-controlled Senate. current rates. suburbs severely handicap the city. Most everyone in Southeastern This push deserves bipartisan support in both chambers. Gov. The debate is ongoing whether Suburban employers use this am- Michigan wants a stronger De- Snyder is already on board the transit bus. to allow the July 2012 reduction to munition to recruit employees. troit, a world-class Detroit. We are It is incredible that lawmakers who purport to be support- be implemented. With the city re- Suburban cities use this ammuni- all still “Detroit companies,” even organizing its entire financial situ- tion to recruit businesses. if we’re located in the suburbs. We ive of adding jobs continue to disregard the pleas of job cre- ation, leadership should take this In the proposed city budget for are all “Detroiters,” even if we live ators who say reliable transit is critical to their workforces. opportunity to develop a long-term 2012-13, income tax revenue is pro- in the suburbs. The leaders who signed a joint letter to lawmakers last strategy to significantly cut the jected to be $229 million, up slight- A study of the income tax can week include Kelly Services CEO Carl Camden, Flagstar Bank city income tax. ly from the previous year, but near analyze all the factors and deter- Michigan Market President Michael Tierney, Beaumont Hos- Once an income tax is put into the lowest in several years. The mine if a 1 percent tax instead of a place, it is here to stay. Congress proposed budget states the reasons 2.5 percent tax actually raises pital CEO Gene Michalski, Quicken Loans CEO Dan Gilbert, passed the Federal Income Tax Act are reductions in jobs and loss of more revenue due to the attraction Compuware CEO Robert Paul and Henry Ford Health System of 1913, and it’s still here. The state residents. of talent and business to the city, CEO Nancy Schlichting. of Michigan enacted a 2.6 percent The city has received an average rather than driving it away. A re- If the legislation is enacted, not only will it allow a transit flat rate personal income tax in of 8,000 partial-year income tax re- duction of the income tax would be authority to proceed, it will ensure that the region qualifies for 1967, and although it has fluctuat- turns for each of the past five a tremendous long-term move for ed over time, it’s highly unlikely years. These are 8,000 tax-paying our city. additional federal funding, including funds to help launch that it will go away. Act 284 of 1964 residents leaving the city annually Daniel Markey, CPA, is manag- light rail on Woodward Avenue. opened the door for cities to enact who have filed their final D-1040. ing partner at UHY LLP, Sterling This is a no-brainer. Republican leadership needs to em- an income tax; 22 Michigan cities Most likely, those 8,000 were the Heights. brace this cause. Build on no-smoking success It’s official: All of the major health systems in metro De- LETTERS TALK ON troit will now turn away job applicants who use tobacco prod- ucts (“Beaumont, Henry Ford to adopt no-nicotine hiring Jan. City’s officials solve problems 1,” crainsdetroit.com, Sept. 28). THE WEB Editor: The two systems will join the Detroit Medical Center, Oak- In response to Keith Crain’s Crain’s Detroit Business welcomes letters to the From www.crainsdetroit.com wood Health System, and Crittenton and Botsford hospitals in concern about Detroit’s govern- editor. All letters will be ment (“I’m reserving a table on screening prospective employees. considered for publication, Re: City Council and Belle Isle the Titanic,” Sept. 24): Elected of- Some hospitals also prohibit smoking on site and bar cur- provided they are signed and Even with the modest improve- ficials typically are very good at do not defame individuals or ments that have been made, the rent employees from “smelling of tobacco.” Yes, that riles per- representing the views of their organizations. Letters may be place is a mess. To have folks sonal-freedom advocates. constituents. If we want to solve edited for length and clarity. scream about a $10 per-year stick- But Michigan must be doing something right. An advocacy a council or school board prob- Write: Editor, Crain’s Detroit er to drive a car onto the Isle is to- lem, we have to change public group, the Campaign for Tobacco-Free Kids, reports that Business, 1155 Gratiot Ave., tally silly. And one can walk on for viewpoints first. It’s slow and dif- Michigan has an estimated adult smoking rate of 19 percent — Detroit, MI 48207-2997. free. Let’s get a grip, Detroiters. That ficult, but ultimately it will work. fee, in exchange for major im- down from more than 24 percent in 2006. And though 80,000 We can use public relations Email: [email protected] provements, is a total steal. Michigan high school students — or 14 percent — are smokers, campaigns, as if this were a ballot William J that’s still better than the national average of 19 percent. proposal. We can motivate people elected officials and governmen- who think like us to get more in- The no-smoking effort remains one of the greatest exam- tal workers for decades, and Detroit would get a lot more volved, or to move into the city. ples of changing behavior through education and effective things are not getting better. It’s kayakers using the island if it were This is our approach in im- time to try a new approach. maintained in a proper manner public service ad campaigns that often shock or amuse. proving public education in De- Nat Pernick and looked better. Maybe the same approach can work to persuade people to troit. Unfortunately, some of our Executive director Willi_H2O become fitter. Michigan this month was named the fifth-fattest community leaders just don’t get Detroit College Promise state, with about 31 percent of the population pegged as obese. it. They have been criticizing Bingham Farms See Talk, Page 9 KEITH CRAIN: Now it’s time to sell the bridge, Matty There are few, if any, Detroiters, when we need him? He there, and it was opened the road in Canada. nice person, or his wife. who create as much of a stir as wanted it once; maybe recently with a bit of This bridge has to be the biggest But the time has come for Matty Matty Moroun. He’s a thorn in a Buffett would trade Mat- hoopla. That doesn’t money-maker in the world for Mo- to get rid of his ownership of the lot of sides and a hero to some. ty the bridge for Buffett’s make any more sense roun to be spending untold dollars darn bridge. He has either got But right now, he’s a real pain if stake in BYD, the Chi- than the rest of this saga. on advertising for his ballot pro- everyone on his payroll or he’s he doesn’t stop running all those nese battery company. I The best thing would posal. I still don’t know how it got alienated the rest. It’s time to end TV commercials. If he had my sup- would love to find out be for Moroun to simply on the ballot in the first place, ex- this fiasco. port before, he lost it now that he’s how the Chinese would sell the bridge to the cept for the fact that he spent tens When he gets rid of his bridge, spending all that money. regard Mr. Moroun. Canadian government of thousands on getting the signa- then he can start being a new nui- The last time I talked to Matty, I Someone has invested or to Ontario or to any- tures for his proposal. He should sance about the land over the tun- asked him why he didn’t just sell millions in the highway one else who could co-ex- have let our representatives do nel to Canada and his railroad sta- the darn Ambassador Bridge, and interchange on the U.S. ist with a second bridge. their jobs. tion in Detroit, which may be the he said he would for the right price. side of the bridge, a cost Everyone seems to If he can’t sell the bridge, then biggest eyesore in our state or per- I only hope someone will come that didn’t make a lot of sense if agree that we need two bridges for maybe he could give it away. haps the nation. along and make him a deal he can’t everything is moving a mile down- Detroit, so the Ambassador Bridge Maybe it’s time to pass the torch to It’s time for Matty to sell his refuse. Where is Warren Buffett river to some new bridge. But it’s isn’t going away, unless they close his son, whom everyone agrees is a bridge. 20121001-NEWS--0009-NAT-CCI-CD_-- 9/28/2012 11:41 AM Page 1
October 1, 2012 CRAIN’S DETROIT BUSINESS Page 9 MARY KRAMER: Microsoft executive leads cheers for Detroit
On paper, John Fikany is lead downtown to the De- nomic crash in 2008 “It’s all about co-creation and darn good salesman. Maybe Pure executive for Microsoft in Michi- troit Athletic Club for a and the hit taken by the joint innovation, exploring what’s Michigan should try and bottle his gan and a corporate vice presi- drink and a walk to the dominant auto indus- possible,” Fikany said. Automak- enthusiasm. dent. Before that, he worked for Tiger game. I want try. “Things looked ers, suppliers, health care compa- “We all have a choice of where Oracle. But he wears another man- them to experience the grim as we expected nies, governments and universi- to work and live,” Fikany says. tle: homegrown and unabashed city’s energy.” everything to be ties have all used the center. “Every year, I have been asked or booster for the region. About four years ago, stopped completely, or A team working on the next gen- have been given an opportunity to He wears Fikany’s team put in a put on hold,” Fikany eration of Ford Motor Co.’s cutting- move to headquarters. But I love Tigers caps as bid for Microsoft to says. edge SYNC system has been by. “We Michigan. Microsoft had a choice, conversation build a major technolo- But the work contin- learned as much from Ford as they and so do I. We both chose Michi- starters on gy center in South- ued, and the center did from us,” Fikany says. gan.” trips, giving field’s Town Center, opened last year. It’s a Fikany says his bosses gave the Mary Kramer is publisher of him a chance to site of Microsoft’s re- Candyland of technolo- project a green light because of the Crain’s Detroit Business. Catch her talk up Detroit. gional offices. Mi- gy and engineering tal- region’s long-term potential, huge take on business news at 6:10 a.m. At the Detroit crosoft has created about 25 such ent for customers and a place that customer base, proximity to top uni- Mondays on the Paul W. Smith show Regional Cham- major centers around the world; lucky nonprofits can use to devel- versities and its diverse talent base. on WJR AM 760 and in her blog at ber’s Mackinac only 10 are in the U.S. op proof of concept and prototyp- Perhaps another reason is more www.crainsdetroit.com/kramer. Fikany Policy confer- His bid won — despite the eco- ing of applications. obvious: The pitch came from a E-mail her at [email protected]. ence in May, Fikany was tapped to tout the re- gion to outside site consultants. One of eight kids whose father started an eponymous residential real estate company in Grosse Pointe, Fikany still sells, whether it’s services and products for Mi- crosoft or his love for Detroit. For visiting colleagues or cus- tomers, he says, “I love being the tour guide, taking them fishing in Grosse Pointe on Lake St. Clair or
TALK CONTINUED ■ From Page 8 I remember the island from 1962 when it was a jewel, with every- thing neat and clean. When it was safe to go to the petting zoo; you could go there for lunch, visit the flower atrium and walk freely on an uncluttered and well-groomed island. Let the state or outside con- tractor maintain the island. Why hang on and let it continue to dete- riorate? Janice Dodson
Another example of our urban leaders being more concerned about power and control rather than prod- uct. Kelly Higgs
Clear thinkers would have jumped at this offer of free help that would have benefited the city mightily. If they want to negotiate, adults would have said, “We like the concept, in general it is good for the city, but we would like to work out a few more details first.” Instead, we get political grandstand- ing by people who are incompetent at best. Announcer
Re: Notre Dame opts out of UM series YOUR BUSINESS ISN’T JUST A JOB — IT’S A PASSION. You get to know your Bummer! This was a good series. customers, treat them fairly, and build relationships. Don’t you deserve that same kind Since ND has not contacted Michi- gan State, I wonder if the Irish of treatment from your bank? With Citizens Bank, you’ll get the right solutions and want to continue that rivalry se- products from people with the experience to know what’s right. After all, we’ve been ries. MSU and ND have played 75 times — one of the longest rival- around over 140 years, helping businesses just like yours grow. So if you want a bank ries for each of the schools. that shares your passion, call us. BECAUSE WITH US, IT’S PERSONAL. Walt
Re: Keith Crain: Table on the Titanic $)&$,*/( 4"7*/(4 r -0"/4 -*/&4 0' $3&%*5 r .&3$)"/5 4&37*$&4 All the money and assets, all the 53&"463: ."/"(&.&/5 r 41&$*"-5: '*/"/$*/( r 8&"-5) ."/"(&.&/5 hopes and all the dreams of a bet- ter Detroit simply have to start with leadership, and there isn’t 1-800-946-2264 any worth speaking of in South- east Michigan. The residents are as CITIZENSBANKING.COM/BUSINESS responsible for electing them. Freedom Trinity 20121001-NEWS--0010-NAT-CCI-CD_-- 9/28/2012 11:40 AM Page 1
Page 10 CRAIN’S DETROIT BUSINESS October 1, 2012
CALENDAR WEDNESDAY 9-11 a.m. Oct. 5. Medical Main Street. website: www.inforummichigan.org. www.annarborusa.org. With L. Brooks Patterson, Oakland EALTHY EMPLOYERS HEALTH County executive; Thomas Novelli, H , OCT. 3 Shining Light Regional Cooperation Medical Device Manufacturers Asso- COMING EVENTS Awards. 7-9:30 a.m. Oct. 11. Detroit Global Automotive and Energy Summit ciation; and others. Royal Park Hotel, CARE HEROES IN SPOTLIGHT DEC Luncheon. 11:30 a.m.-1:30 p.m. Free Press — Economic Parity: One Voice, One Rochester. $95 includes all events. , Metropolitan Affairs Coali- Oct. 9. Detroit Economic Club. With Join Crain’s Detroit Business and Goal. 8 a.m.-9 p.m. Oct. 3, 9 a.m.-1 p.m. Contact: Nicole Thomson, (248) 858- tion. With Allan Gilmour, Wayne State John Zogby, managing director, JZ University president; Larry Alexander, Priority Health from 7:30-9:30 a.m. Oct. 4. Rainbow Push Automotive 7995; email: [email protected]; Oct. 30 at the San Marino Club, Project. With Steve St. Angelo, vice website: medicalmainstreet.com. Analytics. Detroit Athletic Club, De- president and CEO, Detroit Metro troit. $45 members, $55 members’ Convention & Visitors Bureau; Kath- Troy, as best practices that president of manufacturing, Toyota promote healthy employees and Motor Engineering & Manufacturing guests, $75 nonmembers, ticket dis- leen Hatke Aro, president, Accounting healthy workplaces are recognized. N.A.; Diana Tremblay, vice president THURSDAY counts available for DEC members. Aid Society; and Donnell White, execu- of manufacturing, General Motors Co. Contact: Maggie Sisco, (248) 626-0006; tive director, Detroit Branch NAACP. Winners will participate in a panel North America; Judge Greg Mathis; OCT. 4 email: [email protected]; Ford Motor Co. Conference & Event discussion to explain their website: www.econclub.org. Center, Dearborn. $50; $500 table of 10. practices and the strategies that Peter Brown, publisher and editor of DiversityNEXT Kick-Off Event. 7:30-10 Automotive News; and others. MGM RSVP by Oct. 5. Contact: (248) 336- led them to be chosen among a.m. Inforum. DiversityNEXT is a net- 8623; email: info@shining Michigan’s Healthiest Employers. Grand, Detroit. $275 includes meals, work of professionals dedicated to pro- Marketing Roundtable — The Innova- lightawards.com; website: shining sessions and awards reception. Con- moting the advancement of women in tor’s Dilemma. 5-7 p.m. Oct. 9. Ann Immediately following, policymakers, lightawards.com. tact: Alfreda Weathers, (313) 842-3883; the workplace through innovative Arbor Spark. With Diane Durance, hospital administrators, trustees, website: www.rainbowpush.org. thinking and sharing of best practices. Great Lakes Entrepreneur’s Quest. employer groups and other health Inno-Vention Conference. 6:30-8:30 Meritor Inc., Troy. Free members, $25 Spark Central, Ann Arbor. Free. APACC Salute to Excellence Award care insiders convene at Crain’s p.m. Oct. 3, 7:30 a.m.-4 p.m. Oct. 4, and nonmembers. Contact: (877) 633-3500; Contact: (734) 761-9317; website: Dinner. 5:30-9 p.m. Oct. 11. Asian Pa- Health Care Leadership Summit and Health Care Heroes Awards, 9:30 a.m.-2 p.m. Tickets are $99 for current CDB subscribers, $85 for guests in groups of 10 or more, $150 for nonsubscribers, $125 with special CDB subscription offer, or $50 for Healthiest Employers breakfast only. For more information, call (313) 446-0300 or visit www.crainsdetroit.com/events.
cific American Chamber of Com- merce. Celebrate Asian business pro- fessionals and Asian-owned compa- nies that have achieved success in their industries. The Henry, Dear- born. $60 APACC and strategic part- ner level one members or $450 table of eight; $75 nonmembers or $600 table of eight. Contact: Sarah Lalone, (248) 844- 4100; email: [email protected]; web- site: www.apacc.net.
Become a Boardroom Insider. 7:30- 11:30 a.m. Oct. 12. Inforum. With Lisa Pick, principal, Miller, Canfield, Pad- dock and Stone PLC; and Laurene Ho- riszny, chief compliance officer, Borg- Warner Inc. Miller Canfield, Troy. $125 member, $175 nonmember, $100 board-ready participants. Contact: Employee satisfaction. (313) 578-3846; email: cthompson@info rummichigan; website: www.info Available in handy wallet size. rummichigan.org. New Venture For Veterans. 8:30 a.m.- noon Oct. 13. Michigan Small Busi- ness & Technology Development Cen- ter, Eastern Michigan University, VetBizCentral. Assistance for veter- ans seeking to start a business. EMU Livonia campus. Free to veterans. Contact: Paul Nucci, (734) 487-0902; Thousands of small businesses across the state have chosen Blue Cross Blue Shield of Michigan or email: [email protected]; website: http://conta.cc/SAGKHm. Blue Care Network because they understand the importance of a plan that embraces total body health for their employees at a price that won’t break their budget. We can help your business find Detroit Economic Club Luncheon. the best health plan for your needs. 11:30 a.m.-1:30 p.m. Oct. 15. Detroit Economic Club. With John Engler, for- BCN HMO HSASM mer Michigan governor. Westin Book Cadillac, Detroit. $55 guests of mem- An affordable, customizable option that combines a high-deductible health care plan with a tax- bers, $75 nonmembers. Ticket dis- advantaged savings account. You pay lower premiums, and your employees control their health care. counts available for DEC members. Website: www.econclub.org. É1SFWFOUJWFTFSWJDFTDPWFSFEBUQFSDFOU OPUBQQMJFEUPEFEVDUJCMF É*OUFHSBUFEQIBSNBDZQMBO Unlocked — Inside the CEO Mind. 8-10 É%FOUBMBOEWJTJPOCFOFGJUDIPJDFT a.m. Oct. 16. Detroit Regional Cham- ber. With Michael Duggan, Detroit É$PPSEJOBUFE POMJOFIFBMUITBWJOHTBDDPVOU XFCQPSUBMBOEEFCJUDBSE Medical Center CEO. Harper Univer- É-BSHFTU).0OFUXPSLPGQIZTJDJBOTBOEIPTQJUBMTJOUIFTUBUF sity Hospital, Detroit. $20 chamber members, $50 nonmembers. Contact: Simply BlueSM Emily Doerr, (313) 596-0377; email: [email protected]; web- "DPNQSFIFOTJWF110IFBMUIQMBOUIBUPGGFSTZPVSFNQMPZFFTUIFDPWFSBHFUIFZ¼WFBMXBZTXBOUFE site: www.detroitchamber.com. BUBQSJDFZPVDBOBGGPSE.PSFUIBO QFPQMFJO.JDIJHBOIBWFBMSFBEZDIPTFO4JNQMZ#MVFSM É.VMUJQMFEFEVDUJCMFBOEDPQBZNFOUQMBOPQUJPOT Adcraft Oktoberfest. 6-10 p.m. Oct. 18. Adcraft Club of Detroit. Dick O’Dow’s, É1SFWFOUJWFDBSFGVMMZDPWFSFE Birmingham. $20 members, $30 non- É'MFYJCJMJUZUPNFFUZPVSCVTJOFTTOFFET members. Contact: Clarence Young, (313) 872-7850; email: cyoung@ad Find out what thousands of Michigan businesses already know. craft.org; website: www.adcraft.org. Call 1-877-547-BLUE (2583) or visit bcbsm.com/grow. Detroit Economic Club Luncheon. 11:30 a.m.-1:30 p.m. Oct. 18. Detroit Economic Club. With Liam McGee. chairman, president and CEA of The Hartford Financial Services Group. Detroit Marriott at the Renaissance Leading Michigan to a healthier future.SM Center, Detroit. $45 members, $55 guests of members, $75 nonmembers. Blue Cross Blue Shield of Michigan and Blue Care Network are nonprofit corporations and independent licensees of the Blue Cross and Blue Shield Association. Discounts available for DEC mem- bers. Website: www.econclub.org. 20121001-NEWS--0011-NAT-CCI-CD_-- 9/28/2012 11:54 AM Page 1
October 1, 2012 CRAIN’S DETROIT BUSINESS Page 11
Ren Carlton, Page 14 Fadi Aoude, Page 13 Itai Ben-Gal, Page 13 Alisa Bennett, Page 13 Ryan Blair, Page 13
Paul Choukourian, Page 14 Jonathan Dropiewski, Page 16 Elizabeth DiStefano, Page 15 Jacques Driscoll, Page 16 Bernard Fuhs, Page 17
Laura Glenn, Page 17 Malik Goodwin, Page 17 Lisa Katz, Page 17 Meredith Kerekes, Page 18 Damian Gardley, Page 17
Chris Michalakis, Page 20 Storm Kirschenbaum, Page 18 Joseph Kopietz, Page 19 Jeffrey Laethem, Page 19 Ryan Maibach, Page 19
Trevor Pawl, Page 22 Dan Millen, Page 20 Kristin Myers, Page 21 Danielle Olekszyk, Page 21 Jason Raznick, Page 22
Lesley Esters Redwine, Page 25 Meg Roberts, Page 26 Dug Song, Page 29 Scott Rice, Page 26 Ed Siaje, Page 26
Sandy Stojkovski, Page 30 Jeffrey Stone, Page 30 Marlowe Stoudamire, Page 31 Mark Tapper, Page 30 Chris Thomas, Page 32
Christopher Trebilcock, Page 33 Patricia Van Pelt, Page 32 Molly Williams, Page 34 Jamie Walters, Page 34 Sean Zecman, Page 35 DBpageAD.qxp 9/26/2012 5:40 PM Page 1
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October 1, 2012 CRAIN’S DETROIT BUSINESS Page 13
THE AWARDS 40 Under 40 Since 1991, Crain’s Detroit Fadi Aoude, 38 adi Aoude was hired by FordDirect in message across the industry for anyone Business has 2000 as a quality assurance analyst. who was looking for a Ford,” Aoude honored the FHe is now in charge of a more than said. region’s high Senior vice president, $70 million budget. The payoffs for bringing together achievers with technology FordDirect is a joint venture between management of the thousands of sites our 40 Under 40 FordDirect Ford Motor Co. and Ford dealers to man- are efficiency and consistency. It elimi- awards. Dearborn age digital marketing services. nates the need to do things over and This year’s Aoude currently is senior vice over, such as taking pictures of vehicles, winners have Biggest achieve- president of technology. Aoude said. helped reinvent companies, fund ment: Helping Before 2006, every website as- Pictures taken once can be used across and develop Ford and Lincoln sociated with Ford was run all websites. Information about invento- innovative dealers use digi- under a different platform. ry, ordering new vehicles and what is in technology and tal resources FordDirect proposed bring- demand also can be accessed online by helped more efficiently ing all the Ford-related sites dealers. strengthen to sell cars online. under one umbrella, in- Ford Digital Marketing Manager Ron governments and Current goal: cluding all dealer and cor- Merbler said Aoude is a key part of the nonprofits. They Continued innova- porate sites. technology team and brings a technical were selected tion in digital re- There are now more than expertise to the table. from more than 270 candidates. sources and services. 3,300 websites on a single platform, “He has a vision about where we’re go- 17 of them national Ford sites. ing,” Merbler said. Multimedia Editor Nathan Skid shot “It brought more of a consistent — Michelle Muñoz the portraits, along with videos available at crainsdetroit Itai Ben-Gal, 35 Alisa Bennett, 39 velopment. .com/40s — She juggles the responsibilities of where you can CEO and co-founder Manager, group business health care the association she chairs and her pri- reform team also find the iRule LLC mary job, which is providing informa- winners’ profiles Detroit Blue Cross Blue Shield of Michigan tion on health and additional Detroit care reform photos. The QR Biggest achievement: Bringing his for sales and code below also Biggest achievement: Multiple product, which allows consumers to marketing. As links to the site. awards from the National Management use a smartphone as a TV remote, manager of Association in 2012 for the leadership from concept to market. the group development association she chairs. THE EVENT Current goal: Keep improving the business mirovsky, the chief technology officer Current goal: To make tangible dif- This year’s product and satisfying customers. health care re- of iRule and a software developer ferences in the health care industry form team, awards event, from Russia, established the company always a favorite during a period of transition. she has been hen Itai Ben-Gal was build- in 2009. For the first year, they crafted for networking, ing out a home theater that getting the in- will be held Oct. the product and worked out technical lisa Bennett is passionate about ternal sales Whe describes as a “labor of glitches. the Blue Cross Blue Shield of 24 from 5:30-9 love,” he was interested in getting a force up to p.m. at Shriners Version 1.0 was released in Febru- AMichigan Lead- date on health Silver Garden universal remote system installed ary 2010, and Ben-Gal said he ership Development but found it was too expensive. care reform. She also makes client vis- Events Center in and Nemirovsky thought of it Association, a its to aid in educating them and sell- Southfield. Lucky for him he was un- as a side project. But by the group that pro- ing health plans. Hundreds of able to afford the quoted work end of the year, the company vides net- Blue Cross’ total revenue in 2011 alumni have been because out of that happen- had revenue of $115,000, and working was $6.39 billion. invited. Tickets stance was born the idea for they realized it might be big- and leader- But it’s about the leadership devel- are $50 per his Detroit-based company, person for Crain’s ger than they’d planned. It ship de- opment association that Bennett iRule. The iRule is a univer- subscribers; $45 also received a boost with speaks most enthusiastically. She has sal remote app that is compat- each for groups funding from the venture capi- served in various leadership roles, ible with iOS systems used of 10 or more; tal arm of Compuware Corp. and during her tenure as president $40 for alumni; on iPhones, iPads This year, iRule is on the association was able to sign and $90 for non- and Android de- pace for $1 million, and more than 100 new members; subscribers. See vices. the company now has it now has more than 1,600 crainsdetroit It is available 10 employees. .com/events for members. This year, it was in more than 50 A major hurdle details or to buy honored by the National Man- countries tickets. Ben-Gal encoun- agement Association with every through deal- tered was preparing Jennette Smith, award it was eligible for, in- ers or can be the product for deal- managing editor cluding Outstanding Chapter purchased ers instead of indi- and Community Service. from the iR- vidual customers. “I certainly can’t take all the cred- ule website The company had it for the success we had,” Bennett and installed to focus on how to said. “I think one of the things I may by the cus- make the product have brought to the table is a sincere tomer. work for larger in- passion for the association.” Ben-Gal, an stallers and developed Bennett joined BCBSM in 2002. Pre- engineer from Is- the right tools to make viously she was a senior health care rael, and business that happen. analyst. partner Victor Ne- — Michelle Muñoz — Michelle Muñoz
Ryan Blair, 35 public offering, but those plans were ViSalus was acquired by Greenwich, ty and in 2008 founded the Blair Foun- withdrawn last week. Conn.-based Blyth Inc. in January. Blyth dation, which works to further edu- CEO Blair’s personal story of said last week the current cational programs focused on entre- ViSalus Inc. perseverance and taking market doesn’t seem to sup- preneurship in impoverished areas. Troy calculated risks is also gain- port what Blyth believes to Blair’s book, Nothing to Lose. ing attention. This year, be the company’s value, al- Everything to Gain, tells his own Biggest achievement: Restructuring Blair was named Entrepre- though it remained confi- rags-to-riches story. After his fa- his company’s business model around neur of the Year by Ernst & dent in ViSalus’ long-term ther succumbed to a drug addic- a customer-focused, 90-day weight loss Young LLC for Michigan and growth prospects. tion, Blair moved into a gang-in- challenge. northwest Ohio in the con- Besides his ViSalus fested neighborhood in Current goal: Using technology and in- sumer products category, work, Blair said he sup- California where he was in and novation to stay ahead of competitors. one of 12 regional winners ports burgeoning entrepre- out of juvenile detention and be- in the Entrepreneur of the neurs through channels in- came a gang member. But his yan Blair is at the helm of a fast- Year program. cluding the HashTagOne stepfather, Robert Hunt, pro- growing health and nutrition According to its S-1 seed-capital venture fund, vided critical business mentor- Rdirect-selling company head- statement filed with the which looks for businesses ing and helped Blair channel quartered in Troy. U.S. Securities and Exchange in the health, nutrition and his inner entrepreneur. ViSalus Inc.’s weight loss and energy Commission, ViSalus reported sales of technology industries. Blair went on to start his first shakes, drinks and supplements are $230.2 million for the year that ended “I view entrepreneurism as an company by age 21 and in the sold under a marketing plan promot- Dec. 31. It has a network of more than ecosystem,” Blair said. ensuing years negotiate ing a 90-day weight loss challenge. The 100,000 sales promoters and 430 em- He also has committed to donate 90 multimillion-dollar deals. company has been planning an initial ployees. percent of his personal assets to chari- — Jennette Smith 20121001-NEWS--0014,0015-NAT-CCI-CD_-- 9/28/2012 10:18 AM Page 1
Page 14 CRAIN’S DETROIT BUSINESS October 1, 2012
to build his now 3,000-person net- work. Over time, his Troy-based com- pany, Dynamic Advisory Solutions, developed a service it branded the DAS 2-Step Tune Up. When the economic crisis hit in 2008, companies no longer wanted to commit to ongoing outsourcing costs. In response, Carlton began offering the Tune Up to clients on a short-term basis to clean up and then return accounting processes to the client. He works with both small businesses and large organi- zations. Carlton’s 12-person company grossed $3 million in revenue in 2012 and is on track to triple that next year. “I have a lot more respect for the guy I used to work for now,” Carlton said. “But I haven’t been Ren Carlton, 39 bored since.” President — Laura Blodgett Dynamic Advisory Solutions Troy
Ⅲ Biggest achievement: Designing a method that creates self-sufficien- cy in accounting departments. Ⅲ Current goal: To have a presence in every major U.S. city.
he driving factor behind Ren Carlton’s decision to Tstart a company specializ- ing in CFO support services was boredom. As the CFO of a small business, Carlton thought the company needed his ac- counting and CPA expertise but not full time. “I thought if I had five clients just like this, I could see one a day, quadruple my salary and live hap- pily ever after,” Carlton said. In 2000, Carlton launched his business out of his basement with no clients and no prospects. He at- tended chamber of commerce meetings and networking events
Paul Choukourian, 39 quarters and what was formerly known as Trerice Tosto Co. evolved Managing director into a division of the national Col- Colliers International Inc. liers International organization. Southfield But in 18 months, Choukourian doubled the number of local Col- Ⅲ Biggest achievement: Rebuilding a liers brokers by recruiting well- stable of top brokers and a collabo- known players from competing rative culture at one of the oldest firms and bringing young brokers real estate firms in metro Detroit. into the business. Ⅲ Current goal: Further grow With more brokers, revenue the firm’s local market has followed. The volume of share and expand new busi- transactions jumped 74 per- ness lines such as project cent to $278 million in 2012 management. from $159 million in 2011. In addition, the property aking the helm of an management portfolio more 85-year-old real es- than doubled in one Ttate firm in 2011, year, from 1.5 million Paul Choukourian square feet to 3.2 mil- had his work cut lion. out for him. On top of that, Col- The 66 bro- liers added a new kers at the firm business line, manag- in 2006 had ing construction pro- been pared to jects for clients. 13 as the long- But the biggest vic- time owner, tory, Choukourian Leo Tosto; his said, is building a cul- son, Len; and ture with all the new the managing brokers — and their director, Cam egos. McCausland, all “There are a lot of left. This as the brokerages in town local owner- with the kind of cul- ship shifted to ture where you hit a Seattle head- ‘print’ on your com- 20121001-NEWS--0014,0015-NAT-CCI-CD_-- 9/28/2012 10:19 AM Page 2
October 1, 2012 CRAIN’S DETROIT BUSINESS Page 15 40 Under 40 Elizabeth DiStefano, 37 about what she calls a grassroots In addition, by educating every- effort to bring attention to other one “from housekeeper to execu- System coordinator, palliative care treatment options for patients. I feel like I have a tive,” DiStefano said, initial consul- St. John Providence Health System Palliative care is treatment de- “ tation time with patients was cut Warren signed to make patients comfort- voice. I can still be from 11.6 days to 5.5 days. able physically, emotionally and “I was at the bedside before, and Ⅲ Biggest achievement: St. John spiritually. Unlike hospice care, there for the patients now with my job, I feel like I have a Providence’s receiving the 2011 palliative care can be adminis- voice,” DiStefano said. “I can still American Hospital Association Circle tered during any point of an ad- but in a different be there for the patients but in a dif- of Life Award, which honors inno- vanced or chronic illness. ferent way.” vative programs in palliative care. In her work at St. John Provi- way. Also this year, the health system Ⅲ Current goal: Continuing to ad- dence Health System, DiStefano su- ” was awarded a Live Strong commu- vocate for palliative care and pervises a $3 million budget. Elizabeth DiStefano nity impact grant, which provides launching a home care program From 2006 to 2009, St. John Prov- $10,000 toward palliative care spe- in 2013. idence and Duke University worked Early intervention allowed pa- cialty accreditation with the non- together on a palliative care initia- tients to express what they desired profit Joint Commission. ike many health care profes- tive. DiStefano said the project in treatment — and in some cases, DiStefano frequently speaks sionals, Elizabeth DiStefano, had many positive outcomes, in- it was less treatment. Fewer tests about the topic at conferences and L R.N., is passionate about her cluding saving the health system or different avenues of care re- consults other health care systems. area of expertise. But she also $1.5 million. duced costs. — Michelle Muñoz works hard to educate others
Congratulations
Patricia Van Pelt Crain’s 40 Under 40 Honoree
puter and you run to the printer to make sure nobody reads your stuff,” he said. “That’s not the cul- ture I wanted, or Colliers, and that’s not the culture we’ve built. We have great teams here, and they’re working together. That’s what’s best for everyone.” Choukourian is the current treasurer of the Commercial Board of Realtors and is a certified com- Senior Vice President, Head of Retail Banking mercial investment member. — Daniel Duggan Continue to Model the Way. You inspire us to make a difference. We are proud to have you as a leader on our team! -the employees of Fifth Third Bank
Fifth Third Bank, Member FDIC. Equal Housing Lender. 20121001-NEWS--0016-NAT-CCI-CD_-- 9/28/2012 10:22 AM Page 1
Page 16 CRAIN’S DETROIT BUSINESS October 1, 2012 40 Under 40
Jacques Driscoll, 31 After nine months of searching building. for a property and then doing re- The Driscolls are now ap- Owner pairs on the one they bought on proaching the 100,000th slider Green Dot Stables West Lafayette at 14th Street, sold and have to order 500 dozen Featuring: Detroit JAMES D. FARLEY, JR. Green Dot Stables opened in buns a week. MCMANUS March. It didn’t take long for word Green Dot Ford Motor Company DISTINGUISHED BUSINESS LECTURE Group Vice President, Biggest achievement: Realizing a to get out about the sliders and Stables soon Global Marketing, Sales and Service 15-year dream of opening a restau- fries. will begin op- Entrepreneurial Spirit rant. The restaurant was operating erating a food Current goal: with 12 em- truck to ac- in a Global Company Keep growing his ployees commodate burger destination, when it catering re- Green Dot Stables, opened. quests. TUESDAY, OCTOBER 30, 2012 and investing in Driscoll — Michelle 7 p.m. Lecture the city of Detroit. said they Muñoz Madonna University Kresge Hall now have acques Driscoll more than 50 Lecture is open to the public at no charge and his wife, Seating is limited — including his JChristine, were wife, who left a ca- R.S.V.P. by October 24 living in San Diego reer in nursing to 734-432-5589 or [email protected] when they began help operate the entertaining the business. On its INSPIRING ENTREPRENEURS SINCE 1989 idea of opening a busiest days, restaurant. The Driscoll said, Madonna University School of Business t madonna.edu problem? The cost Green Dot hosts was too high. 600 to 700 cus- Driscoll had tomers. worked in the “It was some- restaurant busi- Buy a full page in the Book of thing I’ve wanted FREE ness in California to do my whole Lists and receive a copy of to get experience. But after a visit the Book of Lists digital version. life,” he said, “and then to actually back to Michigan — his and Chris- have it happen was crazy. … I nev- Contact Marla Wise: tine’s home state — they decided er in my wildest dreams thought it 313.446.6032 • [email protected] Detroit was a better place to invest. would become this popular.” Originally, Driscoll had planned to open a smaller restaurant in a rented property. But the real es- tate environment in Detroit al- lowed for the purchase of a larger
Jonathan Dropiewski, 39 Mayor 7$67<'($/6 City of Flat Rock