20120604-NEWS--0001-NAT-CCI-CD_-- 6/1/2012 6:45 PM Page 1 ® This issue in two sections (Section 1) Vol. 28, No. 23 JUNE 4 – 10, 2012 $2 a copy; $59 a year ©Entire contents copyright 2012 by Crain Communications Inc. All rights reserved Page 3 INVESTING IN RECOVERY Benefit corporation bills Snyder set have businesses concerned Manufacturing New plants, new profits to bypass rolls on when sun goes down Brembo SpA rides Legislature Women in business brakes for growth on bridge On corporate BY DUSTIN WALSH CRAIN’S DETROIT BUSINESS Michigan Strategic boards, where Brembo SpA’s braking systems have crossed the Fund is the vehicle are the women? Atlantic many times over the past 50 years on some of the world’s most exclusive imported sports cars. BY BILL SHEA Page M13 But the company’s first foray into the domestic CRAIN’S DETROIT BUSINESS market came in 1992 when it secured a contract to Gov. Rick Snyder will use the Game-changing women supply its high-performance brakes on what was Michigan Strategic Fund as a conduit then a new V-10 sports car called the Dodge Viper. to build a new Detroit River Read their stories on Pages Now, 20 years later, the Italian supplier recently bridge, rather than going through opened its first U.S. manufacturing plant in Homer, M15-M24. Celebrate them Aug. 8. the Michigan Legislature, sources southwest of Jackson, familiar with the matter have told See crainsdetroit.com/events and is poised to expand Crain’s. North American opera- Since enabling bills died in a tions. Brembo is riding state Senate committee last fall, This Just In the market’s fast-recov- Snyder has been seeking a way to ering volumes and au- authorize Michigan’s participa- Faurecia begins operations tomakers’ desire to tion in the $2.1 billion New Interna- capitalize on its high- GLENN TRIEST tional Trade Crossing project with- at Saline interiors plant performance brand Owner Zack Taylor made it a point to finish Lee Steel’s out going through the Legislature recognition. new headquarters in steel only — no wood trim. Auburn Hills-based Faure- — where Republicans have long Brembo brakes like this for Since opening its opposed the span. cia North America Inc. on Friday the Corvette ZR1 are meant North American head- The governor’s office declined to said it has begun operations to be seen, capitalizing on quarters in 2010 in Ply- at Ford Motor Co.’s Automotive the brand’s prestige. discuss specifics. mouth, Brembo North Technology steels “It is still all very much in Components Holdings LLC Sal- America Inc. has invested $150 million in the market ine interiors plant. progress. Conversations contin- with plans to invest $100 million over the next few ue,” said Geralyn Lasher, Snyder’s Faurecia leased a portion of years to expand its North American presence. the 1.6 million-square-foot for- press secretary. “There are differ- The high-performance brake systems and seat Lee Steel for future ent options out there. We’ve said mer Visteon Corp. plant after supplier is one of many foreign-owned subsidiaries acquiring the $1.1 billion book all along we’re exploring the op- looking to expand its presence in Southeast Michi- BY PAT SHELLENBARGER tions available to us.” of interiors business from the gan’s auto industry. plant last month. The plant SPECIAL TO CRAIN’S DETROIT BUSINESS For the past several weeks, spec- The largest foreign-owned au- ulation has been that the Snyder will supply cockpits, instru- tomotive supplier subsidiaries In his newly expanded Wyoming plant, Lee Steel ment and door panels and administration will use what is in Southeast Michigan, accord- Corp. CEO Zack Taylor walked next to his latest ac- known as an interlocal agreement center consoles to 12 Ford pro- ing to Crain’s May 21 list, gener- quisition: a behemoth of a machine called a “preci- grams, including the F-150, to get the joint Canadian-Michigan ated revenue growth of 27.2 per- sion multiblanking line with stretcher leveler.” bridge project under way. Expedition, Explorer, Focus, cent from 2010 to 2011. In layman’s terms, the $4 million contraption, Mustang, Taurus, and Lin- The Michigan Strategic Fund is Comparatively, the nine largest which began operating three months ago, can take an autonomous economic develop- coln Navigator and MKS. publicly traded Southeast Michi- a 70,000-pound roll of steel, stretch it, flatten it and Faurecia also announced ment board, has the statutory abil- gan-based suppliers generated turn it into whatever size sheets his customers ity to aid financing a project such Friday the creation of a call revenue growth of 16.7 percent want. And it takes just two employees to operate it. center for its Ford Customer as the NITC, and has been party to over the same period. Nearby, Taylor pointed to a machine that can interlocal agreements in the past. Business unit in Southfield. James Gillette, director of au- Gillette slit large rolls of steel into narrower widths much The office, occupying 50,000 Michigan’s Urban Cooperation tomotive analysis for Northville-based IHS Automo- faster than the older machine in his Detroit plant. Act of 1967 allows two or more gov- square feet of the Travelers tive Inc., said Southeast Michigan and the U.S. are “This line would outproduce the existing line in Tower I at 26555 Evergreen ernmental units to enter together Road in Southfield, will house See Brembo, Page 20 See Lee Steel, Page 19 into deals — interlocal agreements more than 200 employees. — for shared services, including More than 50 of those jobs will transportation and infrastructure, without having to seek legislative be new hires, with the rest Highlights from the island, coming from existing ACH approval. plant employees and from Pages 9-12, M1-M11 The law permits interlocal Faurecia, the company said in Vested interest agreements with other states and a release. Inside Canada — deals that require ap- Private 200: Diversification Survey says: What biz is thinking, of business in higher- proval from the governor rather — Dustin Walsh boosts companies on list, Page M1 doing in Michigan, Page M1 education funding, Page M27 See Bridge, Page 21 What’s the connection Oakland Community College. Yes, OCC. between a qualified workforce and our Community is our middle name. community? www.oaklandcc.edu NEWSPAPER 20120604-NEWS--0002-NAT-CCI-CD_-- 6/1/2012 5:32 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS June 4, 2012 MICHIGAN BRIEFS New York Times goes to U.P., finds MICH-CELLANEOUS revival in state’s mining industry Boat industry sets sail toward horizon of promising signs Ⅲ Haworth Inc. Chairman Matthew Perhaps the aphorism about Haworth will co-chair the 2012 West Michigan’s waters are starting to fill with boats — the best summer we’ve had in at least five years, if Michigan’s weather also applies to Michigan Policy Forum, Sept. 12-13 in another indication that the state’s economy is show- not longer.” its mining industry — if you don’t Grand Rapids. The event features ing signs of buoyancy. After the Memorial Day Coburn said new boat registrations were up near- like it, just wait a few years. On discussions of issues including weekend, marinas reported a rise in business com- ly 38 percent through April 30, and that boats are be- May 24, The New York Times re- transportation infrastructure, pared with this time last year, and buyers are again ginning to fill the slips, with many marinas report- ported on a revival in Upper health care policy, talent attraction “darkening the doorways” of boat dealers, said Jim ing close to 90 percent occupancy on average. Peninsula mining. Thank the high and retention, and labor policy. The Coburn, chairman and director of the Livonia-based Michigan marinas expect a 3 percent to 4 percent prices of metals such as copper. forum is supported by chambers of Michigan Boating Industries Association. rise in sales, he said. Among the examples The Times commerce in Holland, Grand “We are slowly moving in the right direction in Michigan is third in the nation for registered cited: London-based Rio Tinto’s $469 Haven, Grand Rapids and others, terms of boat sales and retail/ancillary purchases,” boats, with nearly 900,000, Coburn said. The indus- million nickel and copper mine along with the Michigan Chamber of Coburn said. “There is a lot of that pent-up demand try has a $3.9 billion impact on the state’s economy, near Marquette, a $225 million pro- Commerce and Business Leaders for in the state as employment, personal income and with more than 400 dealers, 1,000 marinas and about ject by Canada’s Hudbay Minerals to Michigan. consumer confidence continue to improve, albeit 50,000 industry jobs, he said. mine precious and heavy metals in Register at wmpolicyforum.com. slower than that of previous recessions.” With sales up and marinas filling, the industry Menominee County and a plan by Ⅲ Finally, some news about Jeff Covey, general manager of the 300-slip Great still needs to deal with “a need for skilled, certified another Canadian company, Or- Lakes Marina in Muskegon, just came off “the busiest mechanics for boat repair,” Coburn said. Michigan’s fruit industry that vana Minerals Corp., to mine chal- Memorial Day I can remember,” he said. “I expect — Howard Lovy doesn’t mention a warmer-than- cocite, a mineral that is primarily normal March, a colder April and copper. Orvana says the mine will an apocalyptic harvest. The week- large residential washing ma- were steered to their area.