A story space with room for robots. Does that compute? Page 3 MAY 9-15, 2016 Pistons biz scorecard improves Return to playo s, growing fan interest drive team’s  nancial comeback

By Bill Shea [email protected] The Pistons made the playoffs this year for the fi rst time in seven seasons, and from a business perspective, they were profi table with an improv- ing fi nancial outlook. A winning record and playoff berth have improved the team’s Fewer trees, per-game revenue totals. At their nadir a few years ago, the but still scenic Pistons were generating about Sleeping Bear Dunes $600,000 per game compared to National Lakeshore and the the NBA average of about $1 mil- lion. Now they’re at about surrounding communities in $750,000 per game, a fi gure that northwest are includes all ticket and food and DUANE BURLESON/ASSOCIATED PRESS preparing for the coming beverage sales, but not mer- chandise revenue. Detroit Pistons owner Tom Gores during the  rst half of an NBA basketball game against the Orlando Magic in March. tourist season less than a Over 41 home games, that A winning record and playo berth have improved the team’s per-game revenue totals. year removed from a represents about $6 million in 100 mph windstorm that new game-day revenue growth lates the totals for this season be “modest.” game over 41 home games at for the season. With merchan- next year. To boost revenue, the Pistons the 21,231-seat Palace of Au- tore into the vistas of “the dise and ancillary sales such as “I feel very strongly our game- also will continue to refi ne their burn Hills. That ranked 25th in most beautiful place in corporate sponsorships, the day revenue has picked up dra- use of dynamic ticket pricing, a the 30-team NBA and was an overall new revenue total is like- matically,” said Dennis Man- real-time digital technology that improvement of more than America.” Crain’s Michigan ly higher. The Pistons had nion, president of the Pistons uses software that measures 20 1,200 per game over the previ- Business, Page 9 $154 million in total revenue for and Palace Sports & Entertain- factors to determine the best ous season. When the Pistons the 2014-15 season, Forbes.com ment. And it likely will pick up market price (for the team) of win, they lead the league in at- estimated in January, and that even more in 2016-17 with a single-game tickets. tendance, something they did number is expected to be higher to-be-determined ticket price Attendance improved mod- when the fi nancial site calcu- increase that Mannion said will estly this season, to 16,515 per SEE PISTONS, PAGE 32

“If that place comes down, it will cut the heart out of the Detroit music business.” Ed Wolfrum, former engineer, United Sound Systems Drug accusations jeopardize future of legendary Detroit recording studio

By Robert Snell founder Berry Gordy recorded the nation’s oldest independent United Sound Systems opened in 1933 [email protected] hits, factors into a bizarre case in- recording studio. The studio drew as a producer of ad jingles. It’s since A landmark Detroit recording volving coast-to-coast manhunts, attention last year when Detroit recorded classic pop, rock and R&B. studio threatened by the I-94 wid- a $3 billion highway project and City Council designated it a histor- ROBERT SNELL ening project is in jeopardy again two alleged drug dealers, includ- ic district. This means it would because the historic venue was ing one who had hair and eyebrow require city approval before the Hommie Records, was a fugitive for bought with alleged drug money, transplant surgery while hiding venue could be demolished to four years before being caught in according to federal court records. from federal agents, according to accommodate the widening of metro Detroit in January. United Sound Systems Recording court records. I-94. The legal fi ght could give the Studios, where , The federal court records Late last month, federal prose- Justice Department a prime piece of Bob Seger and Record Corp. chronicle a troubled chapter for cutors asked a judge to have the Midtown real estate and remove Midtown property forfeited to the an obstacle slowing progress on

© Entire contents copyright 2016 government because the studio al- Dwayne Richards, according to a the federally funded I-94 project. by Crain Communications Inc. All rights reserved legedly was purchased with mon- court fi ling. Richards, 44, who The project is being redrawn to crainsdetroit.com Vol. 32 No 19 $2 a copy. $59 a year. ey from alleged drug dealer owned Detroit record label Big SEE STUDIO, PAGE 33

A BETTER PARTNERSHIP® By providing discerning and proactive legal counsel, we build a better partnership with clients. 2 CRAIN’S DETROIT BUSINESS // MAY 9, 2016 Brembo North America has ex- Grand Rapids Business Journal re- MICHIGAN panded or built at the Homer ported. The facility will bring all INSIDE manufacturing site in Calhoun Mercy Health Muskegon inpatient THIS ISSUE ...... County. At full capacity, the found- services together at a central loca- CALENDAR 28 CLASSIFIED ADS ...... 29 ry will be capable of 80,000 tons of tion. Set for completion by June DEALS & DETAILS ...... 27 brake disc castings annually. 2019, it will feature a state-of-the- KEITH CRAIN...... 6 n Kansas City-based Commerce art emergency department and MARY KRAMER ...... 9 Bank plans to open a commercial optimized patient flows. OPINION ...... 6 BRIEFS banking office in downtown Grand n Alberta-based pipeline com- PEOPLE ...... 28 ‘I’ve got your back,’ Obama Rapids, MLive.com reported. pany Enbridge said it expects RUMBLINGS ...... 34 tells Flint residents in visit Commerce Bank, a subsidiary of $62 million in fines and penalties WEEK ON THE WEB ...... 34 Commerce Bancshares Inc., serves related to a 2010 Michigan oil spill, Sipping filtered city water to customers in 191 locations in Mis- AP reported. In a filing with the Se- show it is again drinkable, Presi- souri, Kansas, Oklahoma, central curities and Exchange Commission, COMPANY INDEX: dent Barack Obama promised last Illinois and Denver. Enbridge said $55 million rep- SEE PAGE 33 week to ride herd on government n Aeropostale Inc., the New York resents penalties under federal leaders at all levels until every City-based teen-clothing chain water law. The company said flagship U.S. Morning Foods cereals drop of water flowing into homes ASSOCIATED PRESS that recently filed for bankruptcy, about 20,000 barrels of oil spilled segment; the dip reflects the ongo- in Flint is safe to use. President Barack Obama drinks water said it plans to close 154 stores im- into the Kalamazoo River system ing struggles for Kellogg and rival During a visit Wednesday to the as he speaks at Flint Northwestern mediately, including locations in near Marshall from a ruptured General Mills Inc. as Americans in- beleaguered city, Obama also High School about the water crisis. Howell, Jackson, Muskegon, Tra- line. creasingly reach for alternatives at promised that the aging pipes that verse City and in Fort Gratiot near n Kellogg’s profit declined in the breakfast. Still, Kellogg CEO John contaminated the water with lead nasium. He called providing safe Port Huron, Bloomberg reported. first quarter as the maker of Frost- Bryant expressed confidence that will be replaced but cautioned that drinking water a basic responsibil- Mall-based retailers such as Aero- ed Flakes, Froot Loops and Pop the company would end the year the project will take time. Obama ity of government. postale have struggled to adapt to Tarts continued to fight sluggish with positive cereal sales. That said he wanted to use the crisis to After coughing several times online sales and the changing cereal sales, AP reported. The Bat- would mark the first time Kellogg’s make long-term improvements to during his remarks, Obama asked tastes of teenagers. tle Creek-based company said U.S. cereal sales were positive the city, The Associated Press re- for and drank from a glass of water. n Reservations are available for sales slipped 1.2 percent for its since 2012, he said. ported. three daily nonstop flights from Obama was greeted at the Flint MICH-CELLANEOUS Lansing’s Capital Region Internation- Corrections airport by Michigan Gov. Rick Sny- n Brembo North America Inc. con- al Airport to Chicago. Service der, who has been heavily criti- ducted the first pour at its new launches Aug. 23, the Lansing n The story “Taubman’s former CFO looks forward to new chal- cized for his administration’s han- cast iron foundry built at its Ho- State Journal reported. The Ameri- lenge at Soave,” on Page 1 of the May 2 issue, should have said Tony dling of the crisis; Flint Mayor mer brake parts production facili- can Airlines flights represent a ma- Soave sold City Management Corp. to Waste Management in 1998. The Karen Weaver and other officials. ty, Tire Business reported. The jor upgrade in service to Lansing, date of the sale was incorrect. Obama spoke after he was briefed $100 million Homer cast iron airport CEO Robert Selig said. n An article on Page 9 of the May 2 issue incorrectly reported that on the federal response to the wa- foundry is the fourth in Brembo’s n Mercy Health Muskegon an- a rooftop restaurant is part of the plan for the Best Western Premier ter contamination and had met worldwide foundry network and nounced final design plans for its hotel in the round tower of the former Holiday Inn of South“eld. The privately with nine residents. the first Brembo cast iron foundry new $271 million, 267-bed medi- rooftop restaurant was part of an earlier plan but is no longer feasible, “I’ve got your back,” Obama in North America. It is the third cal center, to be located on the according to the building’s ownership group. told a crowd at a high school gym- factory that Plymouth-based Mercy campus in Muskegon, the

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A BETTERBEBET PARTNERSHIP® ByBy pproovvidvidingidin discerning and proactive leglellegalgal coounsel,un we build a better paparppartnershiptnnerrship with clients. CRAIN’S DETROIT BUSINESS // MAY 9, 2016 3

COURTESY 826MICHIGAN Young authors read at an Alternatives for Girls book reading a liated with 826michigan. Creative writing nonpro t to add Eastern Market hub By Sherri Welch opening. Detroit-based Laavu Stu- the Troy-based Kresge Foundation [email protected] dio is the architect on the project. and a $30,000 grant over three Ann Arbor-based 826michigan 826michigan has raised about years from the Indianapolis-based plans to bring robots and children $1.1 million to- Robert & Toni Bader Charitable Foun- to Eastern Market’s Winder Street ward a $1.5 mil- dation, whose founders had grand- this fall, with the opening of the lion target to parents who worked in Eastern Detroit Robot Factory store and a fund the East- Market years ago. creative writing and tutoring lab. ern Market site The new site will enable The affi liate of 826 National, a and to expand 826michigan to expand the cre- San Francisco-based nonprofi t its programs in ative writing programs it has of- co-founded by novelist Dave the city, Execu- fered in Detroit classrooms and Eggers, has signed a long-term tive Director local libraries for the past three lease for a 400-square-foot store- Amanda Uhle years, and to begin offering free af- front and about 3,500 square feet said. ter-school, drop-in tutoring and of space on the second fl oor of Amanda Uhle: That in- creative writing workshops on 1351 Winder St., around the cor- Expanding writing cludes grants of subjects from silly to serious and ner from Rocky’s Historic Eastern programs for kids. $150,000 from opportunities for students to get Market. both the West their writing published. Renovations to the space began Bloomfi eld Township-based Dres- Affi liates of 826 use a storefront early this spring and are expected ner Foundation and the Mi- to attract children and inquisitive to wrap up in July in time to fur- ami-based John S. and James L. passersby. nish the space for an October Knight Foundation, $200,000 from SEE HUB, PAGE 30 Room for big dreams at Hudson’s site? Earlier this month, the Downtown Development Authority approved a modifi ed development agreement with a Dan Gilbert-affi liated entity to construct a new high-rise building on the site of the former J.L. Hudson’s department store on Wood- ward. What could be in store for the two-acre site that has been vacant since the department store was imploded 18 years ago? Crain’s reporter Kirk Pinho spoke with Ur- ban planning expert Robert Gibbs, managing princi- pal of Birmingham-based Gibbs Planning Group Inc. COURTESY ROCK VENTURES For his take on the project, turn to Page 31. A rendering shows one vision for the downtown location.

MUST READS OF THE WEEK Top bean counters Redeployed Crain’s List: Largest Michigan accounting  rms, Page 25 Skills from service translate to job market. Veterans Cleanup in checkout aisle in the workplace, Grocery belt wrappers convey ad messages, Page 13 Page 15 4 CRAIN’S DETROIT BUSINESS // MAY 9, 2016 Law rms create dedicated automated-vehicle teams

By Lindsay VanHulle to displace the automotive team Crain’s Detroit Business/Bridge Magazine that we have,” Walawender said. LANSING — Some Michigan law Neither firm shared revenue fig- firms are taking their traditional au- ures. Miller Canfield can count tomotive practices into new territo- “dozens of clients” that are in- ry by devoting teams to connected volved in vehicle automation in and autonomous vehicles. some way, Walawender said. Firms such as Butzel Long in Ann About half are software-based and Arbor and Miller, Caneld, Paddock new to the auto industry. and Stone PLC in Detroit are among Dukarski said Butzel Long at- Jennifer Dukarski: Rick Walawender: the first to jump into this space. While tracts new clients each time its at- No “average-Joe “Dozens of clients” they have represented automotive cli- torneys participate in events or automotive team.” in car automation. ents for years, the autonomous-vehi- panel discussions. cle groups are relatively young — with the group’s leaders holding ex- much like the industry itself. pertise in corporate law, information From Midwest to West Jennifer Dukarski, an attorney technology and regulation. Attorneys Both attorneys said the teams with the connected-car and au- handle traditional automotive issues, offer a unique look at the emerg- tonomous-vehicles team at Butzel such as regulation and recalls, while ing industry. Long, described the work as “very navigating new-to-the-industry chal- Detroit — and Michigan at traditional legal issues, but in a lenges such as data privacy and intel- large — are trying to compete with very new context.” lectual-property rights. California tech companies to be the “Part of the reason that we think a “We’ve done it sort of on that first to develop and market specialty team is important is be- track as a specialized team, realizing a self-driving car. Other innovations cause of the technical elements,” that probably in 10 years, it’s going SEE NEXT PAGE Dukarski said. Butzel attorneys spe- cialize in everything from technical elements and federal regulations to broadband communications and cybersecurity, she said. “It’s not your average-Joe auto- motive team,” Dukarski said. Butzel Long’s connected-vehicle team has 11 members who work in all of the firm’s Michigan offices, in- cluding Detroit, and in Washington, D.C. At least half of their work relates to connectivity, she said. The team started about three years ago with an idea for a practice group that could look not only at up-and-coming vehicle connectivi- ty issues but also urban mobility is- sues and ride-sharing services such as Uber and Ly, Dukarski said. Miller Canfield’s team has existed for about a year, said Rick Walawender, a co-director of the autonomous-ve- hicle practice team in Detroit. It formed after the firm began to receive calls from new entrants into the in- dustry, he said — mostly software companies that wanted to do work with connected vehicles. “Some are startups, but, frankly, a lot of them are companies that have Machine been doing this for years and years and years and really never seriously EXPANDING: manufacturer got into the auto industry,” Wala– wender said. Several client compa- 7 7 ,  1/", 1- --] with a $1 million nies realized they needed legal coun- sel because the automotive industry ,756.+-';17 line of credit differs from many with its regulatory climate, procurement practices and liability requirements, he said. 6JG )857 5GKFOCP %QNNGIG QH $WUKPGUU HWNN QT Several other firms have connect- RCTVVKOG/$#KUTCKUKPIVJGDCT9GUV/KEJKICPoU ed-car legal teams, adding up to 70- RTGOKGTDWUKPGUUUEJQQNPQYJCUCPGSWCNN[RTGOKGT Helping staffi ng companies, plus Michigan attorneys. Other exam- DWKNFKPI GPJCPEKPI FQYPVQYP )TCPF 4CRKFUo ples: Honigman Miller Schwartz and consultants, distributors and more with Cohn LLP, Detroit; Brooks Kushman PC, ITQYKPIUM[NKPGCPFGEQPQOKEENKOCVG Southfield; Warner Norcross & Judd business cash fl ow solutions. LLP, Grand Rapids (10 attorneys); Bowman and Brooke LLP, Bloomfield i Hills (20); Reising Ethington PC, Troy; A/R Financing Darrow Mustafa PC, Northville; Quinn iLines of Credit Law Group PLLC, Novi; and Kemp Klein Law Firm in Troy. Miller Canfield’s autonomous-ve- (248) 658-1100 www.hitachibusinessfi nance.com hicle team has about 20 members, CRAIN’S DETROIT BUSINESS // MAY 9, 2016 5

FROM PREVIOUS PAGE are in testing stages — including connectivity, or the ability of vehi- cles to communicate wirelessly with each other and with sensors in road signs to warn of upcoming hazards. Much of Butzel Long’s work in- volves “introducing Silicon Valley Have you to Detroit and introducing Detroit to Silicon Valley,” Dukarski said. Her firm represents clients in both places. Dukarski said she of- outgrown ten helps traditional auto compa- nies and tech firms negotiate agreements, given the inherent your investment differences in their businesses. “When we ... take our traditional advisor? manufactured car parts out to the Valley, they’re negotiating like you’re As you grow your wealth and your portfolio negotiating a software agreement,” she said, adding that when tech firms becomes more complex, the impact of taxes come to Detroit, auto industry terms on investment returns becomes a critical issue. “are completely foreign to them.” “A lot of time I feel like, more than anything, I’m acting like an inter- Come learn about several steps we take preter, which is another exciting to increase the tax e ciency of your portfolio. area in and of itself,” she said. “In negotiations, what’s great is Silicon Valley brings a new way of thinking that I think is an infusion needed in the auto industry. They bring to us a rapid pace of change; they bring to us a little more risk-taking than we’re accustomed to. They bring to us thinking outside the box.” Detroit auto companies are learning to pay attention to risks they may not have considered, such as cybersecurity, Dukarski said. And 248.731.9500 | WWW.S CHECHTERWEALTH.COM Silicon Valley tech firms are learning that the auto industry can’t tolerate patches and upgrades the way soft- Investment Advisory Services oered through Schechter Investment Advisors, LLC. ware customers do. The competition among compa- nies doing R&D has forced the auto industry to speed up, Walawender said. While the industry is used to five- to 10-year vehicle life cycles, he said, West Coast software compa- nies and venture capital firms “think in terms of months, not in years.” Raising issues A challenge on the horizon will be for a Detroit company to figure out how to monetize all the data that will be collected from connected and au- tonomous vehicles while still protect- ing user privacy, attorneys said. In addition, Walawender said, as connected-vehicle research advanc- es, it will require governments to in- vest in smart infrastructure equipped with sensors that can talk to vehicles and alert them about dangers. He said his work involves advis- ing government officials on finance issues. Those who want to attract the automated-vehicle industry to their towns will need to consider how they can offer the infrastruc- ture those cars will need, he said. That raises issues about the type of system to be used, how it will be financed and who will manage it, Walawender said. “They could be sort of put at every traffic light or within every traffic sig- nal and even signs along the road. Or they could even be embedded into the pavement,” he said. “Remember, The Leader in this is the kind of thing that will help facilitate cars being able to track what’s going on in inclement weath- Shareholder Rights er or during snowstorms, or things like that, when its own sensors might not be fully adequate.” 6 CRAIN’S DETROIT BUSINESS // MAY 9, 2016

OPINION For Delta, some turbulence in Tokyo t’s easy to take Detroit Metropolitan Airport for granted. Until you risk losing a nonstop international flight. Last week, Delta Air Lines Inc.’s new CEO, Ed Bastian, told IBloomberg news service that Shanghai soon will be the center of Del- ta’s Asian operations rather than Tokyo — a concession, perhaps, to a realization that new rules could allow Delta’s chief competitors — United and American — the opportunity to fly into a downtown To- kyo airport while Delta is stuck at Narita International Airport — about 50 miles away. Delta is vying with United and American for some daytime landing slots the Japanese will distribute to foreign carriers from the U.S., but the competitors already have partnerships with Japanese airlines. Delta does not. Its filings with U.S. officials seek direct access from Minneapo- lis, Atlanta and Los Angeles — but not Detroit. But if Delta loses out, it may cut service to Narita, too, as passenger TALK ON THE WEB traffic falls off. That may concern Michigan business travelers who fly Delta to Narita — and then on to another Asian destination. Re: Obama’s visit to Flint also be leveraged into our de- Of course, there’s another solution: Keep the routes at Narita — but spotlights economic disparity fense weapons being turned charge significantly less than the competition. Reader responses to stories and against us. Let the brilliant and pas- Man ... talk about using a crisis in a blogs that appeared on Crain’s sionate minds innovate the solution depressed city to get as much political website. Comments may be edited — hopefully from Michigan! mileage out of it as possible. How bla- for length and clarity. NoSpinJustFacts A bit of karma for Comerica tant is the attempt to represent the Flint water crisis as an “illustration Re: Oakland County expected Comerica Bank’s big headquarters move to Dallas in 2007 was its way of enduring U.S. economic inequal- owned facility” doesn’t sound like of getting out from under its image as a stodgy, Rust Belt manufacturing ity.” Do they want to bring the rest of cost-cutting to me. Parole more pris- to add 44,000 jobs over next bank. But some activist investors are now clamoring for Comerica to put America down to the same level or oners and get back to us once we can three years itself on the block because it’s underperforming compared with peer in- raise the level of the economically simply close some facilities. stitutions based on share price and return on equity. depressed? I can’t tell, truthfully. BrewPubNate Wow, such a different picture One analyst told Bloomberg Radio that the bank hadn’t generated ac- I just want to say “thank you” to than the Republicans paint about ceptable returns for the past eight years. (Let’s see ... the headquarters Rick Snyder for his leadership in the Re: Michigan races to stay the jobs picture. Gone from wreck- move was announced, well, just about eight years ago.) time of crisis. People miss that we age under Bush to thriving under The problem: 8 percent of Comerica’s lending portfolio is in energy need good leaders the most in time in driver’s seat on autonomous Obama. Should be thankful and let loans. Texas has a lot of poor-performing fracking and oil companies. of crisis, rather than targeting them. vehicle legislation this be a lesson for the upcoming elec- Last fall, The Wall Street Journal reported that Comerica had labeled Mark Bleckley tion. about $1 billion worth of energy loans — about a third or its total energy Glad Michigan is not surren- John loan portfolio — as “criticized,” meaning the bank itself had concerns Hey, Mark, you do know that dering the opportunities the about the financial condition of those borrowers. Obama is not running for anything, connected or autonomous vehi- In a call with analysts in April, Chairman and CEO Ralph Babb ac- right? Is Snyder paying you to say cle will bring now and for future Re: 2 more guilty pleas in Detroit knowledged the bank was looking at “multiple options.” nice things? Snyder belongs in jail. generations. The biggest chal- Two questions: Is the bank for sale? And who would want to — or DownriverDem lenge will be the prevention of school corruption scandal could — buy it? hacking of software. As we move Sickening. I feel so badly for Comerica doesn’t break out results by state. But we would guess that Re: Senate passes budget plan from software only being a threat these kids that are being robbed by the bread-and-butter middle-market business that the bank has in to a person’s monetary security the people who are supposed to be Michigan is one of its only bright spots. Ironic that the old Rust Belt may with 2 prison closures to physical safety as well, there looking out for their future. be the bank’s brightest spot. Go figure. “Prisoners moved to a privately will be an opportunity that can ADA3 It’s been a long road back Just about a year ago, I had are still losing American soldiers mayor of Detroit is doing, he has brating its centennial, I watch the scheduled a procedure to replace in the Middle East, and wars and to wrestle with corruption under Indy 500 celebrate its 100th race my aortic heart valve. A new pro- terrorism still seem to be our big- his watch. This time on his proud- and my friend Roger Penske cele- cedure that would require just a gest threats. est accomplishment, the demoli- brating his 50th year in motor few hours in the operating room, a The U.S. has picked a Republi- tion of housing. Where did all the sports, a great accomplishment. few days in the hospital and back can nominee for president, and money go? The more things change. to work in something around a the Democrats are still fussing Michigan does not seem to be Detroit is still on the comeback week. over whether Hillary will be indict- gearing up for the presidential trail and seems to be getting stron- It didn’t quite work out that KEITH CRAIN ed or be their party’s choice. race quite yet. With the personali- ger every day. Mr. Gilbert doesn't way. They needed three tries to get Editor in chief The Detroit school system is still ties in the race, it's bound to be a seem to have satisfied his appetite the valve in the heart, taking al- in shambles, as it has been for the barn burner. for real estate; his buying knows most 15 hours in the operating all over again. Thanks to some past few decades. And whenever There is already speculation on no bounds. room. Complications arose and, great physical therapists, I am you think it’s getting better, cor- the next Michigan governor’s race I owe a lot of people thanks for as a friend said, I went into the down to one cane and hopefully ruption rears its ugly head, with in 2018, but I am still rooting for filling in for me while I was ill. “big sleep” for almost a couple of will be able to toss it away soon. school principals no less. And my favorite, Congresswoman Can- Recovery has been a very long months. Unfortunately, when I It has been a very long recovery. teachers who want to strike. dice Miller, to agree to run. road, but we are very close to the awoke, I had to learn how to walk But the world keeps moving. We And in spite of the good job our And while our company is cele- end. CRAIN’S DETROIT BUSINESS // MAY 9, 2016 7 Oakland County expected to add 44,000 jobs By Robert Snell Outlook luncheon May 5 at the De- growth since 2009 outpaced the — Southfield-based Beaumont 2018, fueled by expansion in sec- [email protected] troit Troy Marriott in Troy. nation (8 percent) and the state Health has replaced General Motors tors that include testing labs, mer- Oakland County will add 44,000 Oakland County can be consid- (9.6 percent). Co. as the county’s largest employ- chant wholesalers in durable jobs during the next three years ered a great economy over the “I don’t think you can overstate er — and information technology goods, engineering services, man- and the unemployment rate will next three years due to sustained how much of an improvement fields as examples. agement and technical consulting drop to 3.3 percent, University of job growth among higher-wage in- Oakland County has had over the In the past 12 years, almost 400 services, computer systems design Michigan economists forecasted dustries, falling unemployment last seven years, and going for- emerging-sector companies have and related services. during an outlook lunch last week. approaching historical lows, mod- ward,” Grimes said. invested $3.5 billion in Oakland Motor vehicle manufacturing The projected growth follows erate inflation and growing real The forecast and job growth re- County and created more than jobs are expected to rise slightly seven years of economic recovery wages, Fulton told reporters flects Oakland County’s focus on 61,000 jobs, Patterson said. during the next three years. By from the 2009 recession in Oak- during a news conference. helping create high-paying jobs “That’s where the growth is, 2018, auto factory jobs will ac- land County, when the county's Oakland County is projected to (annual salaries of $75,000 more) that’s where the sustainable jobs count for 2.7 percent of jobs in unemployment rate was 13 per- add 14,000 jobs this year, more in emerging sectors over the last are and where the incomes are Oakland County, according to the cent. During the past five years, than 14,500 next year and more 12 years, Oakland County Execu- better,” he said. forecast. the county has added 94,500 jobs, than 15,500 in 2018. tive L. Brooks Patterson said. Job growth is expected to aver- Robert Snell: (313) 446-1654 and more than 40 percent were in The county's 15.2 percent job He cited growth in health care age 2 percent annually through Twitter: @RobertSnellnews high-wage industries. The assessment from UM econ- omists George Fulton and Donald Grimes came ahead of the 31st an- nual Oakland County Economic Ford ad agency takes new name Team Detroit, the Dearborn-based firm handling Ford Motor Co.’s ad- vertising, has a new name: GTB. The agency’s British advertising holding company parent, WPP, said in a statement on Thursday that it has brought Team Detroit, London-based Blue Hive (which handles Ford’s overseas market- ing), and Minneapolis-based Retail First (Ford dealer advertising) un- der the GTB name. GTB stands for Global Team Blue and will operate across six continents and 49 offices. Its head- quarters remains in Dearborn. New York City-based Hudson Rouge, which handles advertising for Ford’s Lincoln brand, will re- tain its name. Unifying the three firms under the GTB name is a means to em- phasize the agency’s unified global services model. They have begun using the GTB name, brand identi- ty, website and logo. Let’s grow, right now. Team Detroit was created by WPP in 2006 as a conglomeration of six sibling agencies — JWT, Young And, with historically low rates, there’s never been a more opportunistic & Rubicam, Wunderman, Ogilvy & Ma- time to expand your business with a commercial real estate loan from ther, MEC and Mindshare — to han- When it comes to Comerica. As the leading bank for business*, we’ve been financing dle Ford’s now-$2.5 billion market- business expansion for nearly 150 years. Whether you need to build or ing account. business, timing is purchase, expand or refinance, it’s the right time. Are you ready? Its current non-Ford clients in- everything. clude St. Louis-based Nestlé Purina Call 800.705.2387, stop by a Comerica banking center or Petcare, Milwaukee-based Johnson visit comerica.com/cre. Controls Inc., Bryan, Ohio-based Etch-A-Sketch maker Ohio Art, Stockholm/London-based Spotify, and St. Louis-based Anheuser-Busch Companies Inc. Toby Barlow, chief content offi- cer at GTB, will continue reporting to COO Kim Brink, who will keep reporting to GTB CEO Satish Korde, formerly Team Detroit chief executive. Team Detroit, Blue Hive ® MEMBER FDIC. EQUAL OPPORTUNITY LENDER. and Retail First previously operat- Comerica Bank NMLS ID: 480990 RAISE YOUR EXPECTATIONS. ed under one P&L and will contin- *Comerica ranks first nationally among the top 25 U.S. financial holding companies, ue to do so as GTB. based on commercial and industrial loans outstanding as a percentage of assets. Data provided by SNL Financial, June 2015. — Bill Shea, Crain’s Detroit Business CBP-6100-02 04/16 and Advertising Age 8 CRAIN’S DETROIT BUSINESS // MAY 9, 2016 Civilla nonprot examines social issues other attendees,” Selzer said. “He in- ing to serve.” zebo-size, wood-pallet structure is Founders: Innovation starts with putting vited me to Detroit, where I met a lot The Civilla being built to encourage dreams. people before organizational charts of people, and my wife and I moved space, which Civilla’s mission is best illustrat- there in 2014. takes the better ed by a photo on the wall, Brennan By Marti Benedetti ecutive, and Civilla’s COO, Adam “While we were both working at part of a floor in said. It shows a man cutting [email protected] Selzer, who is also a design fellow the United Way, we started sharing the TechTown De- through a well-worn path on the A new nonprofit is designing and lecturer at the Hasso Plattner In- observations about how organiza- troit building in grass in a park, rather than taking around people’s needs to make their stitute of Design at Stanford Universi- tions and leaders were set up to make Midtown, teems the longer route on the brick pe- lives better — or, at least, a little easier. ty and a former design director at changes.” The process was difficult. with creativity. destrian walkway. Instead of de- “We talk to people and design (a the United Way. Selzer said Civilla looks for leaders Roughly illustrat- signing for the status quo, Civilla project) to meet their needs,” said The two met when Brennan took a “for whom doing the same thing they Michael Brennan: ed ideas and concentrates on designing to bet- Michael Brennan, a Civilla co-found- few months’ leave from United Way to have been doing is more painful A dierent way to photos are taped ter satisfy people’s needs. er. “Too often, we design around the learn about creative leadership and than exploring something new. We approach design. to expansive Civilla has a few customers, but needs of the institution.” design innovation at Stanford. like to play a role in uncovering how walls. The fur- Brennan said it was too early to Civilla was started last year by “What became clear quickly was large institutions can adapt to meet nishings scattered around the big disclose customer names or spe- Brennan, a longtime United Way ex- Mike was doing circles around the the needs of the people they are try- space are stylish but worn, and a ga- cific projects. Civilla’s earliest funders were the Ford Motor Co. Fund and the Kresge Foundation, he said. The organization has a $500,000 operating budget for this fiscal year. A for-profit Civilla LLC “is not activated yet,” Brennan said. The nonprofit has a fellowship program consisting of Detroit stu- dents and students from Boston, “HOW DOES DTE ENERGY Toronto, Spain and Vietnam. The fellows work in teams with Brennan and Selzer as educators. KEEP NATURAL GAS SAFE?” “What they are doing is highly in- teractive and visual,” Brennan said. The fellows create their own flexible work space. Customer safety is our highest priority. That is why we take many precautions when “I’m using some of what I taught at Stanford,” Selzer said. “Fellows delivering natural gas to over 1.2 million homes and businesses across the state. We inspect are launching different design nearly 10,000 miles of pipeline each year using advanced technologies, and modernize about probes into the community to see if they can create something of value.” 100 miles of pipeline annually. We also add an ingredient that makes natural gas smell like The organization does not operate rotten eggs, making it easily identifiable in the case of a leak. in a vacuum. Instead, it thrives on col- laboration. For example, Human Scale If you smell natural gas or suspect a leak, do not use electronic devices or open flames, Studio President Chad Rochkind keeps his desk there. As an urban leave the area immediately, and call DTE Energy at 800.947.5000 24 hours a day. planner, he is out in the field a lot, spending maybe eight hours a week in the Civilla space. But he enjoys the connections that have developed be- tween what he is doing (making De- troit a more people-friendly city) and Civilla’s goals. “We bounce ideas off each oth- er,” Rochkind said. “We have a similar philosophy but come from different disciplines.” When one of the fellows came to Detroit to work for Civilla, she learned her expertise and area of interest was better-suited for Human Scale. So she now works with Rochkind. After learning Rochkind had a knack for poetry, he was appoint- ed Civilla’s poet laureate. His work is featured prominently in the work space. Ken Whipple, a former Ford Mo- tor Co. executive and retired chair- man and CEO of CMS Energy Corp., is a Civilla groupie of sorts. When he’s downtown for a United Way for Southeastern Michigan board meet- ing or other business meetings, he said, he likes to stop by to see what Civilla is doing. Whipple said Brennan’s enthusi- asm for human-centered design is contagious. “I’m amazed at the things he’s been able to do and the people he has brought through here in a short period,” Whipple said. He added that Brennan excels at attracting people to Civilla so he can demonstrate what they are working on. “I’m hopeful they have a pretty good chance of making it.” CRAIN’S DETROIT BUSINESS // MAY 9, 2016 9 SPECIAL REPORT: MICHIGAN BUSINESS

MARY KRAMER Publisher [email protected] Twitter: @mkramercrain Bombast from past puts Trump rhetoric in perspective Whenever the tone or substance of what passes this year as political “discourse” gets to me, I think back to a highlight of 2015: Seeing “Hamilton” on Broadway. It’s hard to understate the exhilaration of watching history come alive on the stage in an unsanitized, unpolitically correct way. The rivalries, the jealousies and the insults that Matt Wiesen, owner of Alexander Hamilton, Thomas Jefferson and three Glen Arbor other key players threw at one another were businesses — Crystal remarkable. Today, kids — and adults — are River Outtters, The memorizing those rap-infused lyrics. Cyclery and M22 Glen But even at their nastiest, the barbs trad- Arbor — is ready for ed by the historic figures seem elevated tourists aer cleaning from what we’re watching — live — in the up damage caused by presidential race. last summer’s Historically, though, newspapers in the devastating wind and U.S. rarely concealed their political lean- hail storm. ings in news stories. Hamilton himself PHOTO BY JOHN L. RUSSELL founded the New York Post to advance his views. “Fairness” and “objectivity” were concepts adopted in the 20th century — and perhaps abandoned in the 21st. Today, many blogs, websites, talk-radio shows One and cable TV shows tread the same ground as their ancestors from the 18th and 19th year aer centuries. a 100-mph storm So in this curious political year, of what tore into the tip of earlier public figure does Donald Trump re- northwest Michigan, mind you most? Teddy Roosevelt, Andrew , the region is Jackson, Minnesota’s populist Jesse Ventura WINDED and even Ronald Reagan when he chal- ready for lenged Gerald Ford in 1976 have been replies tourists when I’ve posed the question. But I recall a figure closer to home: Geoffrey Fieger in his ill-fated run for governor of Michigan in 1998. not wounded The hair, the bombast, the insults — and By Amy Lane start showing up again and But in the days and weeks fol- and other national parks cleared the distance between each candidate and Special to Crain’s Michigan Business show them what we’ve done to lowing, debris and thousands hazardous trees in many areas, the party for whom he is carrying the stan- At the three recreation and rebuild and clean up. of trees were cleared, structures including Glen Haven, Pierce dard: Fieger was to Michigan “establish- retail businesses that he and “And show them Glen Arbor repaired and footing regained Stocking Scenic Drive, the Dune ment” Democrats what The Donald has wife Katy own in northwest is still the same beautiful place in an area that has lived in the Climb and Dune Trail and the been to the Republican equivalent. I haven’t Michigan’s Glen Arbor, Matt that they visited in the past, spirit of Sleeping Bear’s being D.H. Day Campground. seen a lot of establishment Republican fig- Wiesen is again ready for the and we are welcoming them.” named “the most beautiful Assistance included the ures, including many business leaders, run to biggest season of the year. The same, but also different. place in America” by viewers of Friends of Sleeping Bear Dunes, an the Trump banner, either. Will Michigan’s big New kayaks and stand-up Pockets of downed trees in the ABC’s “Good Morning America” organization that financially and donors write checks for Trump? paddleboards replace those Glen Arbor area and Sleeping in 2011. physically supports numerous Pundits seem mixed on whether Trump punctured by trees that fell in Bear Dunes National Lakeshore re- park operations and resources. could take Michigan in November. He may last August’s devastating storm. main visible and powerful re- Changing landscapes The group, working with the suffer the same fate as Fieger, who lost to Building damage has been minders of the winds that “Sleeping Bear Dunes — Park Service, coordinated volun- incumbent John Engler, 62 percent to 38 fixed and an equipment deliv- reached 100 mph and snapped we’re still the most beautiful teers who initially tackled clear- percent. ery vehicle repaired. And gen- huge trees like toothpicks, leav- place in America … with just ing trees and debris from sec- But as the rhetoric escalates, remember, erators that have been pur- ing roads impassable and resi- fewer trees,” said Michael tions of the Sleeping Bear America has heard it before. According to a chased stand available to dents and businesses without Buhler, treasurer and co-owner Heritage Trail, a 17-mile story by William Perkins in the Columbus provide backup electricity — electricity for days. of Leelanau Coee Roasting Co. in hard-surface trail managed and Dispatch this month, Jefferson once de- just in case. It was an event that shook Glen Arbor. maintained by the group. scribed arch-foe John Adams as a “blind, “We’re heading into this community functions, liveli- At the park, National Park Ser- Merrith Baughman, chief of bald, crippled, toothless man who is a hid- summer, business as usual, hoods, pastimes and emotions. vice crews from Sleeping Bear interpretation and visitor ser- eous hermaphrodite character with nei- and ready for a good year,” said vices at the park, said the ex- ther the force and fitness of a man, nor the Wiesen, of Crystal River Outt- tent of the acreage affected by gentleness and sensibility of a woman.” ters, The Cyclery and M22 Glen the storm will be known after Kind of makes everything else — even Arbor. “I think there’s a good on-the-ground mapping is Trump — sound mainstream. buzz around town where peo- ple are ready to see the tourists SEE TOURISTS, PAGE 10 Mary Kramer is publisher of Crain’s Detroit Business. Catch her take on business news at Fallen trees cover M-109 into Glen Arbor With care and feeding, 6:10 a.m. Mondays on the Paul W. Smith show aer a storm last August. Sleeping Bear wakes up on WJR AM 760 and in her blog at COURTESY U.S. COAST GUARD AIR www.crainsdetroit.com. STATION, TRAVERSE CITY area economy, Page 12. 10 CRAIN’S DETROIT BUSINESS // MAY 9, 2016 SPECIAL REPORT: MICHIGAN BUSINESS SPECIAL REPORT: MICHIGAN BUSINESS TOURISTS “We had good weather and FROM PREVIOUS PAGE FROM PAGE 9 great tourism following the federal, state and local money spent done this summer. But the park’s on storm cleanup causes. storm cleanup cost about $400,000, storm. ... We had people Among them: about $48,000 gen- funded through its annual budget coming around looking for erated through “Bring the Arbor and National Park Service emergen- storm porn. … They wanted Back to Glen Arbor” — a campaign cy money. launched by Cherry Republic Inc. In the storm’s aftermath, key at- to see the devastation.” President Bob Sutherland to ad- tractions and areas were closed to Michael Buhler, Leelanau Co ee Roasting dress needs and, he said, “take this visitors. But in a park that’s more devastating setback for Glen Arbor than 71,000 acres and encompasses fall ever,” which helped make up for purchased individual generators and … get it behind us.” long stretches of lakeshore, beach the revenue loss. for their three stores. When the Sutherland said the tally includes access and water recreation areas, storm knocked out electricity, the $8,000 from Cherry Republic and campgrounds and North and South Fall harvest of business shops were closed for five days $2,000 from the Traverse City-based Manitou islands, visitors could be The fall produced welcome traf- and reopened in a limited capacity Utopia Foundation, a nonprofit directed to other options, Baugh- fic for many businesses that took a after that, thanks to a generator founded in 2007 by his brother, Paul man said. storm-related hit. Matt hauled from their house each Sutherland. Utopia handled dona- JOHN L. RUSSELL “The message we really stressed Buhler at Leelanau Coffee Roast- morning. tions to the campaign. The area of Sleeping Bear Sand Dunes that overlooks Glen Lake known as Alligator was that the park had been impact- ing said the loss of electricity for five He declined to state revenue loss So far, $10,000 has gone to help Hill, shortly aer the storms devastated the area last summer. ed by the storm, but the park wasn’t days following the storm left the but said it was “a substantial amount private property owners with tree closed,” she said. keep the conference functioning, paired for probably three months or business “dead in the water” — un- of money” that business interrup- cleanup, and another $10,000 con- The park’s August visitation suf- escorting guests with flashlights more and affected bookings well able to roast coffee, ship orders to tion insurance didn’t fully replace. tribution is planned to help clear fered a nearly 7.5 percent drop, from when needed, changing menus to into other seasons. wholesale customers around the “In the grand scheme of things, it’s debris, cut up trees and remove 388,000 visitors in August 2014 to feature items that didn’t need to be “People who are fond of Lake country and operate the retail café, nowhere near what we would nor- stumps on another section of prop- 359,000 last year. cooked or could be prepared off- Michigan, fond of this place, make all during the busiest week of the mally generate for revenue during erty in Glen Arbor, Sutherland said. However, visitation “rebounded site, and powering the resort’s larg- their reservations early,” Kuras said. season. that stretch,” Wiesen said. “It’s al- Another $10,000 was disbursed really quickly,” and Septem- est meeting room with a generator. “When you can’t get through on the The biggest impact came at the ways our busiest week of the year. to Friends of Sleeping Bear Dunes. ber-through-December numbers Even so, the resort didn’t charge telephone, I would imagine people café, where the five-day loss in reve- We’ve got a short window of oppor- That group’s storm cleanup on sec- were strong, Baughman said. While for guest rooms for the day without called elsewhere.” nue equated to about 6 percent of tunity, so to lose that week, it hurt. tions of the Heritage Trail dis- the storm-related damage “may power — a “substantial” business He said phone-related costs to- the café’s total annual revenue and “But we had a really strong fall, patched teams of volunteers includ- have impacted short term in the effect of the storm that added up to taled about $800,000, of which 10 percent of its profit, Buhler said, which helped ease the burden of be- ing chainsaw operators certified by month of August, it definitely didn’t a six-digit figure, said Tim Norman, probably $150,000 was for repairs. declining to state dollar figures. Busi- ing closed that week.” the Park Service who worked from drive people away,” she said. the resort’s general manager. The rest was estimated lost revenue. ness interruption insurance covered Property damage, like tree dam- 10 a.m. to 4 p.m. They were followed And the park still reached record The Homestead Resort in Glen Leelanau Vacation Rentals, which the loss of food in freezers and other age to the delivery vehicle and a ga- by Park Service crews who tackled numbers in 2015, ending the year Arbor carried on with a wedding in handles rentals of Homestead con- perishable items, as well as two of the rage roof, was covered through auto bigger and more tangled trees, said with 1,535,633 visitors, compared the storm’s wake but was without dominiums and homes and cottag- five days of revenue loss. and building insurance, he said. Kerry Kelly, the nonprofit’s chair- with the past peak of 1,531,560 in power for several days and lost cur- es on area lakes and in communi- But strong retail customer num- man of the board. 2012 — the year after Sleeping Bear’s rent guests as well as those holding ties, had a mixed experience coming bers in September and October The power of fundraising “Every day we were able to make “Good Morning America” designa- reservations. out of the storm. Without power, helped compensate, adding reve- For nine employees whose vehi- tion. More subtle than the visible im- many renters left and were given a nue for the business and hours for cles were damaged in the storm, the As the storm moved across Leela- pacts of the storm, however, was full refund for the remainder of the its employees, Buhler said. M22 store donated $10 for each sale nau and Grand Traverse counties lightning-strike damage to the re- week, CEO Ranae Ihme said. Those “We had good weather and great of “LOVE Glen Arbor” T-shirts, rais- and beyond, it left a trail of private sort’s phone system. who stayed received a reduced rate. tourism following the storm,” he ing more than $7,000 to help repair and public property damage that “We never thought of the phone But the revenue loss, which Ihme said. “It didn’t scare it away. That or replace the employees’ vehicles. reached an estimated $29.7 million system being impaired. And by the said was around $60,000, was limit- was one of our biggest worries. Wiesen said he and his wife and in Leelanau and $15.4 million in next morning, we were starting to ed in duration. While nearly all of “We had people coming around M22 store founders Matt and Kee- Grand Traverse. Losses also hit the figure out there was a problem," Leelanau’s 147 rental properties at looking for storm porn. … They gan Myers wanted to find a way to bottom lines of businesses in the re- said resort President Bob Kuras. By the time suffered damage, sister wanted to see the devastation.” help employees. gion. late that day, it was apparent there maintenance company Glen Arbor In the storm’s wake, some consid- And now, the store is donating Grand Traverse Resort and Spa out- was a serious problem. Outdoor was able to remove trees erations were made more certain. 22 percent of all sales of LOVE Glen side Traverse City was without elec- “People would call, and we and make repairs in time for the Leelanau Coffee is looking to add a Arbor items to Friends of Sleeping tricity for 24 hours, losing power wouldn’t even know they were call- next round of renters to arrive the generator at the café and already did Bear Dunes for its continued work during the primary arrival time of ing,” Kuras said. “If agents were following week, just as the power so at a new Maple City location that in the park. attendees to the Management Brief- busy, there was no voicemail or au- came back on. will house wholesale and roasting Private monetary contributions Reliable, modernized grid ing Seminars put on by the Center for tomatic forward to the next agent. “Having that service company operations, including an eightfold have played significant roles in the Automotive Research that would fill The phone would just ring.” tied into us was a saving grace,” increase in roasting capacity. area’s restoration, supplementing the resort. The resort was able to He said phone service was im- Ihme said. And “the fall was our best Similarly, Matt and Katy Wiesen SEE NEXT PAGE Energy is essential to the way we live, work and play.

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1-800-748-0468 | starlease.com Investment Advisors s (866) 644-2701 s www.GJSCO.com CRAIN’S DETROIT BUSINESS // MAY 9, 2016 11 SPECIAL REPORT: MICHIGAN BUSINESS SPECIAL REPORT: MICHIGAN BUSINESS FROM PREVIOUS PAGE small branches. such storm “blow-downs,” includ- “We just realized that, when you ing leaving downed trees and debris federal, state and local money spent have 100 people show up for a work that do not pose hazards. on storm cleanup causes. day, (and) you don’t have any tools Shrubs and saplings can start to Among them: about $48,000 gen- … how are you going to go out and fill in forest gaps; dead and decaying erated through “Bring the Arbor prepare them for work? We’re just trees can provide habitat for birds, Back to Glen Arbor” — a campaign trying to get stocked up, so if we bats, insects and other animals and launched by Cherry Republic Inc. have another event like this, we will return nutrients to the soil; and ma- President Bob Sutherland to ad- be more prepared.” ture hardwood forest eventually re- dress needs and, he said, “take this Donations have supported Glen turns, the Park Service says. devastating setback for Glen Arbor Arbor Township’s recovery. The purchased individual generators and … get it behind us.” township received $28,500 in unso- ‘It will come back’ for their three stores. When the Sutherland said the tally includes licited contributions that it dis- “It’s going to take time; it’s going storm knocked out electricity, the $8,000 from Cherry Republic and bursed with the assistance of a to take decades,” said Baughman, shops were closed for five days $2,000 from the Traverse City-based “Re-Arbor Glen Arbor” community the Sleeping Bear park official. “But and reopened in a limited capacity Utopia Foundation, a nonprofit task force formed to help the town- … forest has evolved with these kind after that, thanks to a generator founded in 2007 by his brother, Paul ship prioritize how the money of blow-downs. It will come back.” Matt hauled from their house each Sutherland. Utopia handled dona- JOHN L. RUSSELL should be used, said township Su- The trail signs, a team effort of the morning. tions to the campaign. Bob Sutherland, president of Cherry Republic Inc., launched the “Bring the Arbor pervisor John Soderholm. Friends group and park, are expect- He declined to state revenue loss So far, $10,000 has gone to help Back to Glen Arbor” campaign aer storms devastated the area last year. The contributions have helped ed to be installed this month. but said it was “a substantial amount private property owners with tree pay to clean up debris remaining af- As the summer tourist season ap- of money” that business interrup- cleanup, and another $10,000 con- a lot of progress,” he said. Winds Slammed Northwest Michi- ter state and county road clearance proaches, there’s anticipation and tion insurance didn’t fully replace. tribution is planned to help clear Over six days, 138 volunteers gan. The Cottage Book Shop in Glen work and to plant nearly three doz- optimism. “In the grand scheme of things, it’s debris, cut up trees and remove worked 1,052 hours to remove fallen Arbor added $1 to the publisher’s do- en trees last fall “to present a new, At Glen Arbor’s Leelanau Vaca- nowhere near what we would nor- stumps on another section of prop- trees and open the trail. nation for copies it sold, Kelly said. fresh face for the community come tion Rentals, Ihme said her book- mally generate for revenue during erty in Glen Arbor, Sutherland said. The Friends organization re- Some of the money has helped spring,” Soderholm said. ings for the season are up 26 percent that stretch,” Wiesen said. “It’s al- Another $10,000 was disbursed ceived $10,000 for storm recovery pay for equipment and safety gear, Trail clearance work still remains from last year at this time, in part ways our busiest week of the year. to Friends of Sleeping Bear Dunes. from the Muncie, Ind.-based Ed- he said. in the national park’s Alligator Hill, reflecting a strong economy. We’ve got a short window of oppor- That group’s storm cleanup on sec- mund F. and Virginia B. Ball Foundation “One of the things about this which suffered massive damage And at Cherry Republic, Suther- tunity, so to lose that week, it hurt. tions of the Heritage Trail dis- Inc. It also received $5,266 donated storm is it helped us to understand that Soderholm likens to a giant go- land said he’s “really looking for- “But we had a really strong fall, patched teams of volunteers includ- from sales of a book chronicling the what kinds of things we were lack- ing bowling in the forest. ward to this summer and getting which helped ease the burden of be- ing chainsaw operators certified by storm and its destruction through ing in, in order to prepare for an And on the Heritage Trail, there back to all the fun that we have up ing closed that week.” the Park Service who worked from pictures, commentary and narrative event like this,” Kelly said. “Whereas soon will be two interpretive signs here. And also seeing our summer Property damage, like tree dam- 10 a.m. to 4 p.m. They were followed written by retired Detroit Free Press we had one small chainsaw before, that will explain the event: the people’s reaction to Glen Arbor one age to the delivery vehicle and a ga- by Park Service crews who tackled political editor Bob Campbell. clearly that was not enough. People weather circumstances and how year later, and to the park. rage roof, was covered through auto bigger and more tangled trees, said Traverse City publisher Mission were using their own equipment. what are called straight-line winds “Come and see a town and how and building insurance, he said. Kerry Kelly, the nonprofit’s chair- Point Press donated to Friends of “We purchased more axes, saws, knocked down the trees; as well as much we have rebounded from man of the board. Sleeping Bear $1 for each copy sold helmets, vests, loppers,” which are the Park Service philosophy of let- this,” he said. “But understand that The power of fundraising “Every day we were able to make of Storm Struck: When Supercharged scissors used to prune twigs and ting areas recover naturally from there is still more to do.” For nine employees whose vehi- cles were damaged in the storm, the M22 store donated $10 for each sale of “LOVE Glen Arbor” T-shirts, rais- ing more than $7,000 to help repair or replace the employees’ vehicles. Wiesen said he and his wife and M22 store founders Matt and Kee- gan Myers wanted to find a way to help employees. And now, the store is donating 22 percent of all sales of LOVE Glen Arbor items to Friends of Sleeping Bear Dunes for its continued work in the park. Private monetary contributions Reliable, modernized grid have played significant roles in the area’s restoration, supplementing SEE NEXT PAGE Energy is essential to the way we live, work and play.

ITC operates, builds and maintains the region’s 6,1&(5(/<,19(67(',1<28 At our fi rm, we value our team and clients like family. electric transmission infrastructure. We’re a Michigan- Our investment advice is tailored for each institution based company working hard to improve electric and individual.  reliability and increase electric transmission capacity throughout the Midwest.

We’re ITC – your energy superhighway. Invested alongside you since 1976. www.itctransco.com Member FINRA/SIPC

Investment Advisors s (866) 644-2701 s www.GJSCO.com 12 CRAIN’S DETROIT BUSINESS // MAY 9, 2016 SPECIAL REPORT: MICHIGAN BUSINESS ,QWHJULW\ LVRXUPRVWYDOXDEOHFRPPRGLW\ The care and feeding of a SLEEPING BEAR Michigan's shoreline treasure is a $205M economic engine

By Amy Lane numerous ways, including tour- chael Buhler, treasurer and Special to Crain's Michigan Business ism that feeds into the economies co-owner of Leelanau Coee Roast- Every year, more than 1 million of nearby communities. ing Co. in Glen Arbor. people visit Sleeping Bear Dunes Na- A National Park Service report Sleeping Bear operates with tional Lakeshore, known for its mas- on visitor spending in the nation’s about 55 permanent employees sive shoreline sand dunes and land parks, released last month, pegged and seasonal temporary employ- and water recreation. the 2015 local ees — last year, 73 — who work But visitors may not know all it economic im- generally from mid-May through takes to make the 71,210-acre na- pact from Labor Day, said Merrith Baugh- tional park run, including employ- Sleeping Bear man, the park’s chief of interpreta- 7 he business of defending our nation is an arena in which the ees, volunteers, nonprofit contri- at $205.8 mil- tion and visitor services. typical rules of commerce do not apply. Hiring a legal team with butions, a $4.2 million annual lion. In all, And beyond that are scores of expertise in every aspect of the industry is key to winning and budget and additional revenue more than 1.5 volunteers — more than 2,000 last maintaining defense contracts. from fees. million visitors, year. They contributed 58,000 Visitors also may not compre- including 1.3 hours to the park, including at Butzel Long has decades of experience in government contracts hend Sleeping Bear's sizable foot- million nonlo- campgrounds, beaches and trails, print. cal visitors, Baughman said. and export controls, with a rm grasp of the changing legislation Baughman: The park encompasses 65 miles spent $163.4 Sleeping Bear’s Among the volunteers are constantly a‰ecting them. Our ability to be proactive, preemptive, of Lake Michigan shoreline, in- million in the visitor services members of two nonprofit organi- and reactive for the contractors we represent is our daily mission. cluding on the mainland and region. That chief. zations that physically and finan- North and South Manitou Islands; money sup- cially support park operations: 7UXVW$OZD\V more than 100 miles of trails; an ported 2,586 jobs and was spread Friends of Sleeping Bear Dunes and agricultural landscape; 366 histor- among hotels, restaurants, retail- Preserve Historic Sleeping Bear. ic buildings and features; and ers, gas stations and other seg- The Friends of Sleeping Bear Ann Arbor • Bloomeld Hills • Detroit • Lansing • New York campgrounds, beach access and ments of the economy. Dunes, formed in 1994, has about Washington, D.C. • Alliance Oces Worldwide • 313-225-7000 butzel.com picnic areas. The park is a draw that returns 300 people who annually regularly Its presence manifests itself in tourists year after year, said Mi- volunteer in various activities, said Kerry Kelly, chairman of the non- profit’s board. Some are “ambassa- dors” who ride, walk or ski the Sleeping Bear Heritage Trail, an- swering visitor questions and re- porting on the trail’s condition. A small number also do heavy main- tenance on the trail and groom it for winter cross-country skiing. Some of the group’s additional contributions to the park include purchasing equipment to provide free Wi-Fi at the visitor center, helping develop visitor guide- books and providing grants to support summer interns . In all, Friends of Sleeping Bear Dunes’ support in fiscal 2015 to- taled $11,682 in direct grants to the park and $55,765 through in- kind project spending. Preserve Historic Sleeping Bear formed in 1998 to preserve late- 1800s to early 1900s structures and features at the park, including farms, outbuildings, log cabins, schoolhouses and maritime build- ings. The group’s work includes in- terpretive, educational and pres- ervation projects in the Port Oneida Rural Historic District — a farming community with 18 farmsteads and 121 buildings in their original locations on 3,400 acres at the northern end of the park. Preservation can bring new life to properties in ways that expand the experience for visitors. On North Manitou Island, for exam- ple, Preserve Historic Sleeping Bear is restoring a former hotel. The hope is to provide an option beyond camping on the island and make it accessible to more visitors, said Susan Pocklington, the orga- nization’s executive director. CRAIN’S DETROIT BUSINESS // MAY 9, 2016 13

SPECIAL REPORT: MICHIGAN BUSINESS Grand Rapids company stays on message with checkout belt biz

By Tom Henderson on sale. One of the tal is a U.S. patent that was granted [email protected] “Target had heard about our belts grocery store in March 2015. Other patents are Handstand Innovations LLC of and called us,” said Handstand COO black belts pending in Europe, Brazil and Can- Grand Rapids is trying to get the Trent Hartwig. “We gave them a from Hand- ada, according to Hartwig. message out: It is raising a financing quote, and two hours later, we got a stand Handstand Innovations raised its round of $1 million to ramp up pro- call back saying we’d been ap- Innovations first investment of $600,000 from duction and marketing of its proved. It was quite a feat for us to promoted Compass Marketing Inc., a marketing ad-bearing products, which bright- execute that big an order in three merchandise firm in Annapolis, Md. Compass en up, and clean up, the traditional weeks. We didn’t get much sleep.” related to the helps Handstand with business de- black belt you set your groceries on Belts needed to be installed on latest “Star velopment and marketing strategies in supermarket checkout lanes. 1,050 conveyor belts. Wars” movie. for MessageWrap. You know those belts, the ones The belts can carry 20 square feet MESSAGEWRAP Mol Belting Systems Inc. of Grand that are sticky with blood that leaked of advertising. Hartwig said a typical Rapids, which makes conveyor belts out of the baby back ribs package cost for a retailer to rent the convey- over your left shoulder,’ and when fied. They get their installations for a range of industries, including from two customers ago, and show or belt wrap and ad of its choice is customers looked over their shoul- done quickly, and they’re quick to supplying 70 percent of the check- spots of white from milk or yogurt, $200 per belt for eight to 12 weeks. der, there was the pharmacy,” he follow up to make sure everything is out conveyor belts at retailers na- not to mention the invisible germs Other customers have included said. all right,” he said. tionwide, makes the MessageWrap from the sick baby whose mom set Sam’s Club, Albertsons, Costco and He said a follow-up survey Hartwig said MessageWrap is be- belts that fit over the traditional her on the belt for a second? Roundy’s Supermarkets Inc. showed 85 percent customer aware- ing used in pilot programs for retail- black belts. The advertising on Mes- Handstand Innovations’ product Hartwig said he has agreed to ness, “and that’s really high,” he said. ers in Australia, Puerto Rico, Cana- sageWrap belts is printed by Source is called MessageWrap, a cus- terms to install a large number of Wood said he has been using da, Israel and the Dominican One Digital of Muskegon, a full-ser- tom-made belt that fits around the belts for a major national retailer he MessageWrap in 60 stores in Mil- Republic. He recently made a pitch vice digital printing company. traditional black belt at the check- can’t name, because the contract waukee and is about to roll it out to for capital at a meeting of the Great Hartwig said $400,000 has been out counter. It has an antibacterial hasn’t been signed yet. his Pick ’n Save brand stores through- Lakes Angels at the UHY Advisors raised so far for the Series B round of coating, which kills those baby Joe Wood is vice president of mar- out the state. headquarters in Farmington Hills. $1 million. He said the company germs, as well as anything trying to keting for Milwaukee-based Roun- Wood said he was surprised by The company was founded in had revenue of $500,000 in 2015 and fester in the blood or milk stains. dy’s, which operates 150 supermar- how much positive customer feed- 2012 by Hartwig; Susan Vander- projects revenue of $2.5 million this The belt also carries advertising kets under several brands in back he got from a small message ploeg, who was a member of senior year. messages. Target recently used Mes- Wisconsin and Illinois. He said he along the side of his ads that said the management at Meijer Inc. from “After we raise this round, we sageWrap’s full-color, high-defini- used MessageWrap in a single store belts were antimicrobial. 1996-2007 and is chairman of the should be able to fund growth out of tion belts to alert customers in 210 in Madison, Wis., a year ago, and was “That resonated with custom- board; and her son, Nathan Vander- cash flow,” said Hartwig, who said stores around the country to the lat- surprised at how successful it was. ers,” said Wood, who praised Hand- ploeg, a University of Michigan eco- the company is hiring account est installment of “Star Wars,” and “We wanted to promote the stand Innovations’ service. nomics major, who is CEO. managers and a graphic designer. not so incidentally to remind them pharmacy in the store, so we had a “They’re very responsive and fo- The company employs seven. Tom Henderson: (313) 446-0337 of all the “Star Wars” merchandise message on the belt that said, ‘Look cused on keeping the client satis- Making it easier to raise equity capi- Twitter: @TomHenderson2

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14 CRAIN’S DETROIT BUSINESS // MAY 9, 2016 WORLDWATCH WHERE MICHIGAN DOES BUSINESS Autoliv Inc. Ford-Werke GmbH (Ford of MPG Inc. Germany) headquarters in Based: Auburn Hills GERMANY Cologne as well as a plant and Based: Southfield Operations: Technical centers ith a nominal 2015 GDP of $3.3 trillion, Germany is the world’s other facilities in Saarlouis; a Operations: Technology centers are in Elmshorn and Dachau, Wsixth-largest economy. The country has a highly skilled labor research center in Aachen in Dieburg and Zell am production plants are in force, according to the CIA World Employees: 25,000 Harmersbach and manufacturing Braunschweig and Döbeln, and a Factbook, but the economy is facing Products/Services: Producing, plants in Zell am Harmersbach development center is in new challenges due to the selling and servicing Ford brand and Nuremberg Schweinfurt. increasing immigration and vehicles such as the Ford Focus, Employees: 650 Employees: 2,100 refugees. The government is also the Ford C-MAX/Grand C-MAX Products/Services: Vibration Products: Seatbelts, front and planning to invest 15 billion euros and the Ford Fiesta in 50 damper applications, process side airbags and radar systems in the next two years to encourage markets development of ready-for- Top executives: Jens Eisfeld, private investment. Top executives: Jim Farley, assembly forgings and forged Germany managing director; Among Germany’s biggest president and CEO for Ford of components combined with Franck Roussel, vice president of exports are chemicals, machinery, Europe; Bernhard Mattes, advanced machining operations steering wheels; Frank Kohrs, vice vehicles, computer and electronic chairman for Ford of Germany Top executives: Christoph Guhe, president of seatbelts; Frank products. Its largest export partners vice president and general Melzer, president of electronics are France (9.6 percent), the United General Motors Co. manager of global forged Clients: Automotive OEMs Kingdom (7.9 percent), the United products; Juergen Depp, vice States (6.9 percent) and the Based: Detroit president of engineering and Belfor Holdings Inc. Netherlands (6.9 percent). Operations: European subsidiary business development for Among its biggest imports are oil Adam Opel AG headquarters, vibration control systems Based: Birmingham and gas, machinery, data technical development and Clients: Include Audi, BMW, Operations: German processing equipment, metals, and pharmaceuticals. Its largest design center in Rüsselsheim and Robert Bosch GmbH, Dana Corp., headquarters in Duisburg, with 30 import partners are the Netherlands (13.8 percent), France (8 production plants in Rüsselsheim, Daimler AG, Getrag, Magna offices throughout Germany percent), China (6.6 percent) and Belgium (6.3 percent). Kaiserslautern and Eisenach Powertrain, Schaeffler Group, Employees: 800 Each World Watch features a different country. If you know of a Employees: 18,250 Volkswagen AG and ZF/TRW Products: Building, property Michigan company that exports, manufactures abroad or has Products/Services: Vehicles and machinery restoration after facilities abroad, email Gary Piatek, senior editor, at [email protected]. including ADAM, Astra, Cascada, Penske Automotive Group fire and water damage, and Combo, Corsa, GTC, Insignia, document drying COMING UP KARL, Meriva, Mokka, Movano, Based: Bloomfield Hills Top executive: Elvir Kolak, June: Mexico | July: United Kingdom Vivaro and Zafira Tourer Operations: Automotive retail managing director Top executive: Karl-Thomas vehicle dealerships in Aachen, Neumann, chairman of the Alsdorf, Bad Münstereifel, Cooper-Standard Employees: 150 (with up to 2,000 headquarters, sales and technical management board of Opel Group Darmstadt, Düren, Erkelenz, once conversion is complete) training center in Frankfurt and GmbH Eschborn, Eschweiler, Frankfurt, Automotive Inc. Products: Pizza, pasta, wings, about 550 dealerships and Fulda-Petersberg, Geilenkirchen, Based: Novi breadsticks workshops throughout the Kelly Services Inc. Hamburg, Heinsberg, Mannheim, Operations: Headquarters and Clients: Retail customers country Offenbach, Simmerath, Skoda, manufacturing facilities in Top executive: Don Meij, CEO of Employees: 340 Based: Troy Stolberg, Übach-Palenberg and Mannheim, manufacturing Domino's Pizza Enterprises Products/Services: Dealerships Operations: Headquarters in Wächtersbach facilities in Grünberg and and workshops offer sales and Hamburg plus 19 offices Employees: 1,250 Hockenheim and manufacturing Dow Chemical Co. service for Fiat, Jeep, Abarth, throughout the country, including Products/Services: Sales of new and technical facilities in Lindau Lancia, Fiat Professional and Mopar Berlin, Cologne, Frankfurt and and used cars and trucks as well and Schelklingen Based: Midland Top executive: Giorgio Gorelli, Munich as vehicle service and parts sales Employees: 1,990 Operations: German CEO of FCA Germany AG Employees: 130 Top executive: Jens Werner, CEO Products/Services: Systems for headquarters in Schwalbach and Products/Services: Staffing of continental Europe anti-vibration, fluid transfer, fuel plants in Ahlen, Bitterfeld, Federal-Mogul Corp. services for commercial, and break delivery and sealing Böhlen, Bomlitz, Leuna, professional and technical TI Automotive Ltd. Top executive: Fernando de Rheinmünster, Rastatt, Schkopau, Based: Southfield positions Miguel, senior vice president and Stade and Teutschenthal Powertrain operations: Top executive: Thomas Schenk, Based: Auburn Hills president for Europe Employees: 5,000 Manufacturing facilities in vice president and managing Operations: 11 manufacturing Clients: Include BMW, Daimler Products/Services: Base and Beckedorf, Blumberg, Dresden, director country group Germany plants and two tech centers, in AG, Dura Automotive Systems, Ford specialty chemicals for food, Friedberg, Herdorf, Neuhaus and Bremen, Ettlingen, Heidelberg, Motor Co., Geely, General Motors Co., pharmaceuticals and Stadtallendorf and technical Key Safety Systems Inc. Fuldabrück, Ingolstadt, Magna, Porsche, Tata Motors, Veritas construction, adhesives and raw centers and manufacturing Isenbüttel, Leipzig, Neunkirchen, AG, Volkswagen and Webasto material for polyurethanes facilities in Wiesbaden, Based: Sterling Heights Neutraubling and Rastatt Top executive: Willem Huisman, Nuremberg, Barsinghausen and Operations: Technical center in Employees: 1,900 Dayco Products LLC president of Dow Germany Burscheid Raunheim and a satellite sales Products: Include fuel tank Products/Services: Valve train, office in Munich systems, brake and fuel lines, fluid Based: Troy Dow Corning Corp. rings, liners, sealing, friction, Employees: 280 carrying systems bundles, fuel Operations: Sales and admin ignition, pistons and bearings Products/Services: Development pumps, powertrain components, office in Viernheim Based: Midland Motorparts operations: A and testing of safety systems and HVAC systems, tubing Employees: 20 Operations: A manufacturing manufacturing facility in Glinde, a support for administration, Top executives: Bogdan Products/Services: Sales in the plant in Wiesbaden technical center in Bad Camberg finance, program management Mieszczak, managing director, auto and industrial markets Employees: 360 and a regional office in and sales functions for facilities in FCS Europe; Albert Boecker, Top executive: Bruno Vallillo, Products/Services: Silicone- Ludwigsburg Italy, France, Macedonia, global product and advanced president of Europe, the Middle based materials used in the Employees: 8,800 Romania and the UK engineering director, tank East, India and Africa automotive, construction, Top executives: Gian Maria Top executive: Ralph Caspari, systems Clients: Global automotive and electronics, personal and health Olivetti, chief technology officer president of passive safety Europe Clients: Daimler AG, Audi AG, industrial manufacturers care industries for Federal-Mogul Powertrain; and managing director of KSS Volkswagen AG, BMW AG, Ford Motor Top executive: Klaus Hoffman, Martin Hendricks, president Deutschland GmbH Co., General Motors Co., Jaguar Land Domino's Pizza Inc. president of Western Europe for Europe, Middle East and Africa for Clients: Include Aston Martin Ltd., Rover Ltd., MAN, Porsche AG, Dow Corning Federal-Mogul Motorparts Audi AG, Bentley Motors Ltd., Daimler Lamborghini SpA, Volvo Car Corp., Based: Ann Arbor AG, Fiat SpA, Ford Motor Co., General Renault-Nissan, Kautex Textron Operations: Eight pizza stores in FCA US LLC Ford Motor Co. Motors Co., Hyundai Motor Co., GMBH & Co., Inergy Automotive Germany and a joint venture that Jaguar Land Rover Ltd., Porsche AG, Systems LLC, TI Automotive LLC and has led to the purchase of Joey’s Based: Detroit Based: Dearborn Peugeot S.A., Renault-Nissan Magna International Inc. Pizza, with 220 stores Operations: An FCA Germany AG Operations: Ford of Europe and Alliance, Toyota and Volkswagen AG Compiled by Natalie Broda CRAIN’S DETROIT BUSINESS // MAY 9, 2016 15 SPECIAL REPORT: VETERANS IN THE WORKPLACE Value of veterans Returning service members bring skills, leadership to the workplace

Vietnam veteran Keith King has seen the pendulum swing to where companies actively seek America’s veterans.

PHOTO/LARRY PEPLIN

By Bill Shea business career. I took it off my ré- and create a demand for ex-ser- [email protected] sumé,” said King, who spent de- vice members that gives them an In the summer of 1970, Keith cades in broadcast sales and ad- advantage in the workplace not King was a 19-year-old M-60 ma- vertising before launching an seen since after World War II. chine gunner with the U.S. Army’s organization to certify veter- That’s because the Pentagon is military police protecting supply an-owned businesses a few years under orders to slash its manpow- convoys running ammunition ago. er numbers to meet budgetary along the dangerous routes to Forty-fi ve years after King left constraints. If opposition withing American troops fi ghting in South the Army, the pendulum has the ranks and on Capitol Hill don’t Vietnam’s war-torn Central High- swung the other direction, and hold sway, under the current bud- King (right) stands alongside a lands. companies actively seek America’s get the Army must cut 30,000 U.S military police armored car on A year later, the Detroit native’s veterans of the wars in Afghani- troops by fi scal 2018. That would Army a road in the Central Highlands of enlistment term complete, King stan and Iraq. They’re seen as of- leave 450,000 active-duty soldiers, South Vietnam in 1970. was told by those processing his fering skills and leadership that making it the smallest U.S. Army transition to back to civilian life civilians don’t always bring to the since 1940, before conscription not to wear his uniform. It was an table, especially as the military has ballooned the ranks on the eve of ugly era for those leaving the mili- grown increasingly complex with World War II. change in society in America,” million active-duty troops, includ- tary. The public was weary of the technology and systems, said By the end of World War II, there King said. “We became a society ing 1.5 million in the Army. The war, and protesters were said to King, who now is president of the were 12 million men in uniform, with a high percentage of people numbers have slowly dwindled insult veterans. Detroit-based National Veteran and the original G.I. Bill provided leaving the farm and coming into since. Corporate America was skepti- Business Development Council. them money for college or voca- the city. That created the suburbs. Today, the most recent head- cal of Vietnam veterans for many tional training along with low-in- They came home, went to school, count from the Pentagon shows years, too, he said, and many com- Pipeline of returning terest home mortgages and loans and had the opportunity to get 1.3 million men and women in the vets slowing panies didn’t want to know about to start a business. jobs.” Army, Marine Corps, Air Force, Navy, applicants’ Vietnam service. The pipeline of veterans, how- “The educational portion of In 1968, at the height of the Viet- and Coast Guard. That’s the lowest “It was detrimental to me in my ever, could slow in coming years that is what really drove the nam War, the Pentagon had 3.5 SEE VETERANS, PAGE 16 Companies try to end disconnect many vets feel in corporate world

By Dustin Walsh rate America — there are 275,000 said an executive advocates on world. It’s a 9-to-5 with no week- Crain’s Detroit Business veterans in the Michigan labor “In the military, their behalf, compared to 19 per- ends, so (vets) feel less connected With a glut of U.S. military vet- force — they are less content than you ... live and die cent of men and 13 percent of and engaged.” erans returning to the workforce in their military career and strug- women who are nonveterans. Prygoski leads Cooper-Stan- due to the wind down of forces in gle to adjust to life in button downs with your team. “In the military, you quite liter- dard’s veterans affi nity group, the Middle East, employers re- instead of fatigues, according to a There’s naturally ally live and die with your team,” which it chartered in November, to main vigilant in hiring those with November 2015 study by New a lower level of said Scott Prygoski, director of in- address issues faced by the com- military experience. Corporations, York-based research fi rm Center for formation technology for Novi- pany’s veterans. including those in Southeast Talent Innovation. commitment in based Cooper-Standard Holdings “There’s a chain of command in Michigan, in turn have upped Roughly two-thirds of those the corporate Inc., a West Point graduate and for- the military, but in the corporate their marketing and promotion of surveyed said they weren’t using mer captain in the U.S. Army. world it’s a chain of infl uence,” Pr- veteran hiring in recent years. three or more of the skills applica- world.” “There’s naturally a lower level of ygoski said. “These vets used to go But once veterans enter corpo- ble to their job and only 2 percent Scott Prygoski, Cooper-Standard commitment in the corporate SEE DISCONNECT, PAGE 17 16 CRAIN’S DETROIT BUSINESS // MAY 9, 2016

SPECIAL REPORT: VETERANS IN THE WORKPLACE &DUHHU2SSRUWXQLW\ for a few years as the services cut veterans can offer employers a va- VETERANS troops, but then the flow of new riety of skill experiences, such as DISCONNECT FROM PAGE 15 vets will be reduced to numbers expertise in computers, engines FROM PAGE 15 %XVLQHVV&RDFK not seen since before 9/11. and other technology, medical 6XFFHVVIXO0DUNHWLQJ6WUDWHJLVWORRNLQJWRIRUPD troop strength since 2001, accord- training and leadership. to their CO (commanding officer) A smaller pool SDUWQHUVKLSZLWKDVPDOOEXVLQHVVFRDFKFRQVXOWDQW ing to federal data. Enlisted personnel account for to get something done, now they Michigan has the 11th-largest That’s likely to mean the corpo- the largest portion of veterans. For have to set up meetings with pur- ,¶YHGHYHORSHGDSURFHVVZKHUH,FDQILQGPRUHWKDQ veteran population, state and fed- rate world will compete for the example, for every 10 Marine en- chasing and manufacturing and IRU$1<VPDOOEXVLQHVVRZQHU«DQGGRVRLQOHVVWKDQPLQXWHV eral data show. There were 658,469 smaller pool of veterans, especial- listed personnel, there is one offi- tooling; the chain of command is , YHEHHQRIIHULQJWKLVVHUYLFHWRVPDOOEXVLQHVVRZQHUVDQGLW V known veterans as of 2014, the ly those with technical skills and cer. In the more technically orient- foggy, and we’re here to help them UHVXOWLQJLQPRUHEXVLQHVVWKDQ,FDQSRVVLEO\KDQGOH most recent accounting available. experience that translate into ci- ed Air Force, that ratio is close to understand and navigate this par- The majority of those are Vietnam vilian jobs, King said. three airmen for every one officer. adigm shift.” ,I\RX¶UHDQH[SHULHQFHGEXVLQHVVFRDFK vets (237,675), followed by those “It’s kind of like college recruit- Enlisted personnel must have at The group, which has 40 mem- RU\RX¶UHLQWHUHVWHGLQEHFRPLQJRQHDQG who have served since 1990 ing. Some are in a place they can least a high school diploma or bers, also provides mentoring, ed- \RXKDYHDVROLGEXVLQHVVEDFNJURXQG, (155,745). demand only the best academic GED, while officers have college ucation and camaraderie, Prygos- ZRXOGOLNHWRVSHDNZLWK\RX The U.S. military’s post-9/11 students,” he said. “When (vets) degrees. Officers appeal to compa- ki said. :LOOLQJWRWUDLQWKH³5LJKW&DQGLGDWH´LI peak manpower was 1.43 million in come out, they’re going to come nies because they attend regular Keith King, president of the De- 2003, with the Army’s peak of out with a pretty good opportunity SEE NEXT PAGE troit-based \RXKDYHZKDWLWWDNHV National Veteran Busi- 566,045 coming in 2010. The Army for employment. We have a lot of ness Development Council, said alone has cut 80,000 troops since demand. If they did IT security, companies not focusing on inter- )RUPRUHLQIRUPDWLRQ 2012, and barring a change in policy computers, drones, worked on nu- Military might nal veteran development are miss- HPDLOFKXFN#.H\V%XVLQHVVFRP under the next president (or anoth- clear-powered submarines, we’ve ing out on potential leaders. er war), troop levels will fall further. got a job for them.” Here is a look at the U.S. military’s “An officer is really running a RUFDOO That means there will be a burst While America has had troops total active-duty troop strength at multimillion-dollar operation with of new veterans in the workforce deployed in combat since 2001, key points since the eve of World hundreds of employees, but em- the veterans of current conflicts War II. ployers don’t think of it in those don’t account for the largest co- 1939: 334,472 (start of World War II terms,” said King, an Army veteran hort of former service members. overseas) who served in the Vietnam War. Veterans who served during World “Smart companies are not only 1941: 1.8 million (start of War II, the Korean War, and the conscription, beginning of World Vietnam era accounted for 42 per- War II for U.S.) Want to Help Veterans? cent (8.9 million) of the total veter- FROM PREVIOUS PAGE an population in 2015. The re- 1945: 12.2 million (end of World War II) mainder are 7 million veterans of 1950: 1.46 million (start of Korean training and classroom instruc- Veteran-owned businesses (VOBs) hire more veterans. Using the first Gulf War and subsequent War) tion at military staff colleges and conflicts, and 5.3 million who many earn advanced degrees 3.55 million (Korean War Veteran-owned businesses enhances corporate diversity goals, and served in peacetime, records show. 1953: during their military careers. cease re) About 9 percent of all veterans It’s not just technical abilities demonstrates support of the contributions military members have are women. 1965: 2.7 million (rst large that veterans offer, said Ken Hux- “America has been pretty good formations of U.S. combat troops to ley, a retired U.S. Air Force colonel made on behalf of our country. at making veterans. We’re not al- Vietnam) who manages talent acquisition ways good at taking care of them. 1968: 3.5 million (height of Vietnam for Detroit-based Strategic Stang We’ve been through drawdowns War) Solutions and runs its veteran hir- NVBDC provides corporations with a robust database to find before, only to rebuild,” King said. ing initiative. “I’m always a little cautious when 1987: 2.17 million (peak of post- Veterans also offer employers Service Disabled Veteran Owned Businesses (SDVOBs and VOBs) we start talking about politicians Vietnam strength) organizational abilities, respect, and their decision on exactly how 1990: 2 million (First Gulf War) loyalty and the ability to work in a many active-duty troops they’re structured environment, he said. by industries, locations, skills and various codes. Participation 2001: 1.38 million (9/11) going to let go. But assuming they One factor affecting the pace of in a nationwide information and referral network helps to do, we’re going to have to reinte- 2003: 1.43 million (start of Iraq War, veteran hiring, Huxley said, is the grate all these people into normal peak post-9/11 strength) nation’s economic health. meet Federal Government veteran business subcontracting society.” 2016: 1.34 million (current armed “A lot will depend on where the forces manpower total as of March 31) economy is at the time these folks A variety of skills, stream out of the military,” he said. requirements, and to market to an increasingly loyal consumer abilities Source: U.S. Department of Defense’s Defense Manpower Data Center; The National World War “That will determine how much group. Whatever the manpower totals II Museum; Department of Veterans A•airs opportunity these folks have.” of the active-duty armed forces, If Washington continues to re- duce troop strength and the stream of veterans into the work- By helping veteran businesses grow, we’re helping our veterans, place tightens, it’s important that civilian employers continue their their families and the community. emphasis on hiring former service members, Huxley said. “My hope is corporate America will continue its campaign to rec- ognize and bring those veterans into their workforce,” said Huxley, who joined the Air Force after graduating from Wayne State Uni- versity in 1979 and retired in 2005 after a military career primarily in human relations management. Whatever the economic situa- tion, the federal government has made great strides in aiding new veterans, Huxley said. That always hasn’t been the case. “The Department of Defense and Veterans Administration do a pretty good job of providing programs that help veterans transition into Visit nvbdc.org for more information the workforce or continue their about becoming certified and partnership opportunities. education,” he said. Bill Shea: (313) 446-1626 Twitter: @Bill_Shea19 CRAIN’S DETROIT BUSINESS // MAY 9, 2016 17

SPECIAL REPORT: VETERANS IN THE WORKPLACE SPECIAL REPORT: VETERANS IN THE WORKPLACE veterans can offer employers a va- employee work skills; it’s difficult to down,” Ennis said. “There wasn’t a achieve their potential.” riety of skill experiences, such as DISCONNECT teach someone to be a leader. Vets lot of self-identification, and no King said companies pushing expertise in computers, engines FROM PAGE 15 already have those skills in place.” one was saying ‘help us’; but as we beyond the recruitment of veter- and other technology, medical Detroit-based DTE Energy Co. started to hire more veterans, we ans to encompassing develop- training and leadership. to their CO (commanding officer) recognized that it was missing the began to understand the climate ment plans represents a sea Enlisted personnel account for to get something done, now they boat in developing its veteran and how we leverage their differ- change in the stigmatization of the largest portion of veterans. For have to set up meetings with pur- workforce. ent skill sets.” veterans. example, for every 10 Marine en- chasing and manufacturing and The energy provider created a DTE is currently trying to estab- “The change in society has been listed personnel, there is one offi- tooling; the chain of command is new position in late 2014, promot- lish its own affinity group for vet- tremendously positive,” King said. cer. In the more technically orient- foggy, and we’re here to help them ing Sandy Ennis to vice president erans, their families and any other “Being in the military, going to ed Air Force, that ratio is close to understand and navigate this par- Scott Prygoski: Sandy Ennis: of diversity and inclusion, with the advocates for veterans at the com- war, that changes your perception. three airmen for every one officer. adigm shift.” Helps vets at Works with DTE’s mission of improving engagement pany. It’s not normal. It’s an extreme. But Enlisted personnel must have at The group, which has 40 mem- Cooper-Standard veteran and of its veteran and minority work- “There is untapped talent what I’ve seen lately, companies least a high school diploma or bers, also provides mentoring, ed- Holdings. minority workforce. force. there,” Ennis said. “Veterans bring nurturing (veteran) employees ... GED, while officers have college ucation and camaraderie, Prygos- It hasn’t been easy, Ennis said. diverse characteristics, such as that’s a tremendous asset for both degrees. Officers appeal to compa- ki said. committed to hiring vets, but also “(Vets) tend to be a stalwart problem-solving skills, innovative the employer and employee.” nies because they attend regular Keith King, president of the De- understand the value of their expe- group; they are used to taking or- thinking, etc., and that makes for a Dustin Walsh: (313) 446-6042 SEE NEXT PAGE troit-based National Veteran Busi- rience. It’s much easier to teach an ders and keeping their head strong business case to help them Twitter: @dustinpwalsh ness Development Council, said companies not focusing on inter- Military might nal veteran development are miss- ing out on potential leaders. Here is a look at the U.S. military’s “An officer is really running a total active-duty troop strength at multimillion-dollar operation with key points since the eve of World hundreds of employees, but em- War II. ployers don’t think of it in those Properly administered, a Family Trust 1939: 334,472 (start of World War II terms,” said King, an Army veteran overseas) who served in the Vietnam War. “Smart companies are not only 1941: 1.8 million (start of safeguards your most valuable asset: conscription, beginning of World War II for U.S.) FROM PREVIOUS PAGE FAMILY TRUST. 1945: 12.2 million (end of World War II) 1950: 1.46 million (start of Korean training and classroom instruc- It’s understandable why tightly knit families rely on Greenleaf Trust to War) tion at military staff colleges and many earn advanced degrees keep things in good order from one generation to the next. With family offi ce 1953: 3.55 million (Korean War during their military careers. cease re) It’s not just technical abilities and personal trust divisions, a legal charter that ensures our independence in 1965: 2.7 million (rst large that veterans offer, said Ken Hux- perpetuity, and the stability enabled by nearly $8B in assets, we capably formations of U.S. combat troops to ley, a retired U.S. Air Force colonel Vietnam) who manages talent acquisition accommodate all sides without taking them. Trust is in our name for a 1968: 3.5 million (height of Vietnam for Detroit-based Strategic Sta­ng reason; for the good of your family, please allow us to earn yours. War) Solutions and runs its veteran hir- ing initiative. 1987: 2.17 million (peak of post- Veterans also offer employers Vietnam strength) organizational abilities, respect, 1990: 2 million (First Gulf War) loyalty and the ability to work in a structured environment, he said. 2001: 1.38 million (9/11) One factor affecting the pace of 2003: 1.43 million (start of Iraq War, veteran hiring, Huxley said, is the peak post-9/11 strength) nation’s economic health. 2016: 1.34 million (current armed “A lot will depend on where the forces manpower total as of March 31) economy is at the time these folks Source: U.S. Department of Defense’s Defense stream out of the military,” he said. Manpower Data Center; The National World War “That will determine how much II Museum; Department of Veterans A•airs opportunity these folks have.” If Washington continues to re- duce troop strength and the stream of veterans into the work- place tightens, it’s important that civilian employers continue their emphasis on hiring former service members, Huxley said. “My hope is corporate America will continue its campaign to rec- ognize and bring those veterans into their workforce,” said Huxley, who joined the Air Force after graduating from Wayne State Uni- versity in 1979 and retired in 2005 after a military career primarily in human relations management. Whatever the economic situa- tion, the federal government has made great strides in aiding new veterans, Huxley said. That always hasn’t been the case. “The Department of Defense and Veterans Administration do a pretty good job of providing programs that help veterans transition into the workforce or continue their 34977 woodward avenue birmingham, mi 48009 greenleaftrust.com 248.530.6200 education,” he said. Bill Shea: (313) 446-1626 Twitter: @Bill_Shea19 18 CRAIN’S DETROIT BUSINESS // MAY 9, 2016 SPECIAL REPORT: VETERANS IN THE WORKPLACE Hurricane sends Coast Guard veteran A perfect storm down a new, successful path By Je Johnston It wasn’t the first time he had to ties. A back injury sidelined him in a project in 2010. Jenkins, in the Special to Crain's Detroit Business step it up. November 2005. government, knew contracting. When Hurricane Ike roared “I believe God decided I’d had Odrobina, in private business, ashore in Texas on Sept. 13, 2008, ‘Should have been in enough,” he said. After months of knew construction. its 110 mph winds and 20-foot prison’ physical therapy and two surger- Recognizing how they comple- storm surge scored a direct hit on Growing up in the 1970s and ies, in November 2006 he received mented each other, they teamed the U.S. Coast Guard station on Gal- ‘80s near San Antonio, Texas, Jen- a disability retirement from Public up to form W4 Construction Group veston Island. Base housing, gal- kins was on a fast track to nowhere. Safety. He adjusted his Reserve ac- LLC in April 2013, with Jenkins as leys and docks were destroyed. “I represent that statistic that tivities and shut down his con- founder and CEO and Odrobina as “This one was a beast,” Coast should have been in prison,” he struction company to concentrate general manager. Guard Reservist Percy Jenkins re- said. From public intoxication at on healing. It was a reflection of lessons calls. “The whole island was a mess.” age 16 to poaching deer a couple Jenkins learned in the service: val- Rebuilding was a mess, too, as of years later, “I got in trouble for Choosing a new road ue leadership, find the smartest numerous contractors began to so much.” Then came Ike, and in its wake people, make good decisions. bump elbows. It was Jenkins’ job In court on that poaching Jenkins saw a new path for himself. “You have to have the right to create order. charge, Jenkins caught a break. His He earned a bachelor’s degree team,” he said. Percy Jenkins: “I need ... to give back.” Jenkins in 2008 was a reservist mother vowed military service in business management and It helps to capitalize on other and former residential builder in would shape up her son. The judge the way, he started a residential technology from Downers Grove, advantages, too. Kalamazoo. The Coast Guard had said OK, and Jenkins signed up for construction company. Ill.-based DeVry University, special- For Jenkins, one of those was el- called him back to active duty in the Coast Guard. Four days after While at a firefighting academy, izing in project management. In igibility for the U.S. Small Business Galveston for his construction his belated high school graduation Jenkins listened when a U.S. Navy exchange for four years of addi- Administration’s 8(a) Business De- background, but this would be his in 1985, he was in boot camp. veteran told him he’d be a fool not tional service time, Jenkins paid velopment Program. first experience with large govern- The Coast Guard took him to to build on his nine years of mili- only small fees for college. His tui- In a nutshell, 8(a) serves ap- ment contracts. New Jersey, Virginia, Mississippi, tary service, so he enlisted in the tion costs of at least $250 per cred- proved small businesses owned When he found he could navi- Detroit and Seattle. He left after Coast Guard Reserve in 1996 with an it hour were covered. and run by minorities with dimin- gate the labyrinthine world of fed- nine years and settled near his eye toward earning his full pen- “The tuition assistance — that ished capital and credit opportu- eral construction contracting, wife’s family in the Kalamazoo sion and other benefits. was priceless,” he said. nities. The nine-year program of- “that started the wheels spinning.” area and hired in at Kalamazoo’s From 1998-2005, he worked full Jenkins also earned project fers training, mentoring and He saw that with enough hard water department while eyeing a time as a K-9 officer for the Kalam- manager professional certifica- competitive perks including bid- work, he could become a success- career as a public safety officer, azoo Department of Public Safety, tion through the Project Manage- ding and sole-source contracts set ful government contractor. building on the firefighting, polic- managed nine builders and re- ment Institute, based in Newtown aside for 8(a) companies. “I knew at that point I needed to ing and search-and-rescue skills modelers at his construction busi- Square, Pa. Businesses must balance their step up my game,” he said. he’d developed in the Guard. Along ness and served his Reserve du- Then he met Mike Odrobina on SEE NEXT PAGE

Each year, the American Diabetes Association and the Father’s Day Council honor over 100 men from across the country as outstanding fathers and community leaders through local Father of the Year Awards. Please join us in congratulating the 2016 honorees representing the Metro Detroit Area. ­e honorees will be recognized on Tuesday, June 7, 2016 at Cobo Center.

Dennis W. Archer Bill Dirksen John Welsh Chairman & CEO VP Labor A•airs Founder/Co-Owner Dennis W. Archer PLLC Ford Motor Company Michigan Evaluation Group Chairman Emeritus 06.07.16 Dickinson Wright PLLC Cobo Center

To reserve your corporate table or sponsor the Father of the Year Awards Gala, visit www.diabetes.org/fotydetroit or call Stephanie Camalo at (248) 433-3830 ext. 6695. CRAIN’S DETROIT BUSINESS // MAY 9, 2016 19 SPECIAL REPORT: VETERANS IN THE WORKPLACE A listing of services available Resources for veterans to veterans and their families American Red Cross of repairing and remodeling transi- Michigan Veterans provides substance abuse treat- benefits.va.gov/detroit/index.asp. Southeastern Michigan tional housing for homeless veter- Foundation, Detroit ment and casework services: usc. ans: homedepotfoundation.org, salvationarmy.org/usc/www_usc_ U.S. Small Business Helps coordinate job certifica- click on “veterans.” This Small Business Administra- detroithl.nsf. tion training for veterans and pro- tion program provides services in- Administration vides scholarships to offset the Inforum Center for cluding transitional housing, life Southwest Housing Helps veterans start and man- cost to attend the Red Cross nurse skills and employment training, job age a business, learn how to get assistant training program. Ford Leadership opportunities and referrals, trans- Solutions, Detroit loans and other information at Motor Co. in February announced Inforum offers Next 4 Vets, a portation and legal assistance: Piquette Square, a 150-unit sba.gov, then search for veterans. that it is sponsoring 175 such custom leadership program to michiganveteransfoundation.org. apartment project in Detroit, pro- The SBA also instituted a new on- scholarships. Red Cross also pro- help women veterans build suc- vides mental health counseling, line contracting tutorial to help vides emergency financial assis- cessful and rewarding careers. Military OneSource substance abuse treatment, on-site veterans and military spouses who tance and resources to veterans Program consists of four half-day job training, and other services own small businesses identify and unable to receive other govern- group sessions and two one- This U.S. Department of De- to help veterans develop indepen- win federal contracting: sba.gov/ ment and social service agency on-one coaching sessions. The fense program provides resources dent living skills: swsol.org/ sba-learning-center/search/ aid: redcross.org/mi/detroit. next group of sessions will be of- and support to active-duty Na- piquette-square-for-veterans/. training. [email protected]. fered next spring. Sign up in De- tional Guard and Reserve service Brain Injury Association cember: inforummichigan.org/ members and their families. The TechShop Detroit VetBizCentral next4vets or Deborah Young at Employee Assistance Program of Michigan [email protected] section on its website provides ac- This fully equipped fabrication Assists veterans, active duty, In conjunction with the U.S. or (313) 324-0236. cess to articles, podcasts and vid- and design space includes every- Guard and Reserve members in Department of Veterans Affairs, eos, among other resources, spe- thing from plasma cutters to 3-D the formation and expansion of the association helps business JVS cific to military programs and printers. Free one-year member- their businesses through training owners understand and deal with military family concerns such as ships good at any TechShop. CEO and counseling, networking, men- veterans with brain injuries or The Veterans Empowerment career, education, financial and Mark Hatch is himself a veteran: toring programs and more: post-traumatic stress disorder: Tools program helps vets with legal information: militaryone techshop.ws/ts_detroit.html. vetbizcentral.org or (810) 767-8387. biami.org or (800) 772-4323. service-related disabilities rein- source.com. tegrate into the community. Ser- United Way for Veteran’s Haven, Wayne Emmanuel House vices include support groups, National Foundation for one-on-one support, and voca- Southeastern Provides food, clothing, transi- Recovery Program, Detroit tional and educational counsel- Veteran Redeployment Michigan, Detroit tional housing and medical sup- Provides housing, drug and al- ing. To qualify, a veteran must Serves as a conduit for training, plies: (734) 728-0527 or vetshaven cohol rehabilitation, employment have a 10 percent service-con- human resource networking, and Its 2-1-1 information hotline info.org. assistance, resume writing, inter- nected disability, an open case financial support for U.S. veterans and database offers veterans refer- view skill-building, a temporary with the VA Vocational Rehabili- interested in career opportunities rals for everything from benefits Volunteers of address for employment purpos- tation Unit and Employment in the oil and gas industry. Offers assistance, financial assistance, es, and transportation to and from Chapter 11 services and be re- training, job placement and relo- food, transportation, housing, vo- America-Michigan jobs: emmanuelhouserecovery. ferred to JVS by a VA counselor. cation funding: idealist.org/view/ cational rehabilitation, workforce Jobs and housing programs pro- org or (313) 270-4099. Sign up at ebenefits.va.gov/eben- nonprofit/HsFXZfG3xb3p/. development, and health care to vide case management services, efits/jobs or at jvsdet.org/who- counseling and disability resourc- transportation assistance and oth- Employer Partnership of we-serve and click on “veterans.” Pure Michigan es: liveunitedsem.org/get-help. er services: voami.org/veterans. the Armed Forces Talent Connect Michigan Veterans University of Detroit Wins for Warriors U.S. Army Reserve and National State employment services for Guard program provides employers A airs Agency veterans that include helping em- Mercy Law School Foundation a direct link to service members State agency oversees veterans ployers looking to hire veterans, The law school’s Veterans Law A nonprofit organization found- seeking employment. The organiza- services in addition to the Michi- information on education and Clinic works with low-income veter- ed by pitcher Justin tion’s Hero 2 Hired website is a com- gan National Guard and Michigan training and other resources: ans to help obtain their benefits and Verlander that advocates for and prehensive job portal for all service Volunteer Defense Force: mitalent.org/veteran. address legal and professional needs: invests in resources that engage members: h2h.jobs or vets.gov/ michigan.gov/dmva. law.udmercy.edu or (313) 596-0235. veterans and their families: veterans-employment-center. winsforwarriors.org . Michigan Small Business Salvation Army Eastern U.S. Department of Home Depot Foundation Michigan Division This list was compiled with the help of Development Center Veterans A airs Detroit VetBizCentral and by researching Partners with nonprofit organi- Offers free training to veterans Operates transitional housing Regional Bene‡t Oˆce websites and calling organizations. It is zations to address the housing who want to launch or build busi- sites for homeless veterans in De- not a complete listing of all services needs of veterans, from building nesses: sbdcmichigan.org: (616) troit and in Monroe. A location in Helps veterans connect with ben- available to veterans and their families, ramps and home renovations to 331-7480 [email protected]. Macomb County is planned. Also efit programs and other resources: but a sampling of common sources.

FROM PREVIOUS PAGE Keys to success upon leaving the service. pay all the bills. Napier Industries offer more opportunities to con- Jenkins said retraining and in- LLC, moving from Ann Arbor to nect and get ahead. If you ask Jenkins, being a veter- ternship programs could make a dif- Jackson, is working toward 8(a) Napier, a service-disabled Gulf government contracts with an is a key to his success. Military ference — along with a stronger VA. status with Jenkins’ help. War veteran who served from 1990- commercial work. Required service taught him discipline, con- “The support through the VA is The two men talk by phone and 94, said the intelligence-gathering planning, annual reviews and fidence and leadership — qualities not there,” he said, blaming un- go on job walks together, inspect- skills he honed as a cavalry scout other evaluations help keep he seeks when hiring. At least five derfunding and politicians. “Don’t ing prospective contracts to judge translate well to checking out dem- companies on track. of W4’s 12 current or prospective get me started.” whether they can be done “on time olition jobs. But it’s Jenkins who Jenkins said the SBA grants 8(a) employees are veterans. and under budget,” Napier said. taught him how to be patient, do status to 25 percent of applicants. Vets tend to have the right ‘Doing something right’ “That’s always the most important things the right way and get results. It approved W4 Construction mindset and relevant skills, Jen- Jenkins believes hiring and sup- part.” W4 also has hired Napier as Does Jenkins worry that he’s Group in 2014. kins said, but he knows there’s a porting veterans is good for busi- a subcontractor on jobs. helping to nurture a potential Since then, the program has perception that “veterans who go ness and for the soul. Networking like this is crucial. competitor? helped W4 win contracts includ- to war, they come back with “I need to be able to give back,” Napier met Jenkins through VetBi- No, he said. Instead, he asks ing its biggest so far: $2 million to (Post-Traumatic Stress Disorder), he said — something he does by zCentral, a nonprofit that helps vet- himself this: “What legacy are we renovate the fire alarm systems of they’re not going to be reliable.” mentoring an up-and-coming vet- erans and active-duty service going to leave behind? You’re only eight buildings at Naval Station While the U.S. Department of Vet- eran businessman. members in Michigan, Ohio and on this earth for so long.” Great Lakes near Chicago. erans A airs finds employment and U.S. Army veteran Bradney Napi- Indiana form and expand busi- With that in mind, he sees Napi- W4 secured more than $8 mil- earnings comparable for post- er loves part-time substitute nesses. Similar organizations such er’s growth as a measure of his own lion in contracts before the com- 9/11 veterans and non-veterans, teaching, but he looks forward to as the Detroit-based nonprofit Na- worth. pany finished its second year. about half of veterans experience when his full-time demolition and tional Veteran Business Development “If you succeed, we’re doing Revenue in 2015 was $200,000. some period of unemployment asbestos removal company will Council and veteran-friendly banks something right.” 20 CRAIN’S DETROIT BUSINESS // MAY 9, 2016

CRAIN'S LIST: MICHIGAN DEFENSE CONTRACTORS Ranked by 2015 value of new contracts Value of new Dept. of Company Defense Address contracts 2015 Principal place of Rank Phone; website Top executive ($000,000) Contracting agency work Products or services provided General Dynamics Land Systems Gary Whited, president $876.0 Department of Army, Defense Sterling Heights Military armored vehicles, tank and tank 1 38500 Mound Road, Sterling Heights 48310 Logistics Agency component manufacturing, combat assault and (586) 825-4000; www.gdls.com tactical vehicles AAR Mobility Mark Platko, general 372.5 Defense Logistics Agency Michigan Shipping and storage containers, shelters and 2 201 Haynes St., Cadillac 49601 manager accessories (231) 779-8800; www.aarcorp.com BAE Systems Inc. Mark Signorelli, VP and GM, 151.5 Department of the Army and Navy Sterling Heights Leverage the ground combat vehicle technology for 3 34201 Van Dyke Ave., Sterling Heights 48312 combat vehicles a future fighting vehicle system (586) 795-2220; www.baesystems.com Loc Performance Products Inc. Louis Burr, president 79.0 Army Contracting Command Plymouth Machining and assembly of driveline, suspension 4 13505 N. Haggerty Road, Plymouth 48170 and engine components for military and off-road (734) 453-2300; www.locperformance.com vehicles Wolverine World Wide Inc. Blake Krueger, chairman, 66.4 Defense Logistics Agency Michigan Military and uniform footwear 5 9341 Courtland Drive NE, Rockford 49351 president and CEO (616) 866-5500; www.wolverineworldwide.com L-3 Communications Corp. Michael Strianese, 46.3 Department of the Army Muskegon System technical support, 123 Bradley Fighting 6 76 Getty St., Muskegon 49442 chairman, president and Vehicle transmissions and ancillary hardware (231) 724-2151; www.l-3com.com CEO Avon Protection Systems Inc. John Kime, COO 25.3 Department of the Army TBD B Respiratory protective equipment 7 503 Eighth St., Cadillac 49601-1370 (231) 779-6200; www.avon-protection.com PAT GD Joint Venture LLC Martin Harti, president and 24.4 NA NA Design and construction of an approximately 165 2927 Waterview Drive, Rochester Hills 48309 Asif Bhatti, director meter floating pier for use by the Iraqi Navy and 8 (248) 299-2410; www.pat-engineering.com dredging of the adjacent harbor and navigational channel Avfuel Craig Sinock, president and 22.5 Defense Logistics Agency Michigan and Supply into-plane jet fuel 9 47 W. Ellsworth, Ann Arbor 48106-1387 CEO New Mexico (734) 663-6466; www.avfuel.com Peckham Vocational Industries Inc. Mitchell Tomlinson, 20.0 Department of the Army TBD B Clean and repair unserviceable, but economically 3510 Capital City Blvd., Lansing 48906 president and CEO repairable organizational clothing and individual 10 (517) 316-4000; www.peckham.org equipment for the regional logistics support center program, Northeast region Global Fleet Sales Tom Whitcraft, director 18.6 NA NA A subsidiary of RMA Group, and the authorized 24725 W. 12 Mile Road, Suite 114, Southfield 48034 global distributor of Ford Motor Co. products. (248) 327-6483; ford.globalfleetsales.net Provides vehicle sales and after-sales support in 11 developing countries and post-conflict markets to government agencies, aid missions, and non- governmental organizations Communication Professionals Inc. Andrew Wallace, president 17.0 NA NA Computer support and services 12 23933 Research Drive, Farmington Hills 48335 and CEO (248) 557-0100; www.cpgp.com Williams International Co. LLC Gregg Williams, chairman, 11.5 NA NA Develop turbine engines 2280 E. West Maple Road, Commerce Township president and CEO 13 48390 (248) 624-5200; www.williams-int.com Coordinated Defense Supply Systems Inc. Michael A. Jozefiak IV, 9.8 DLA, Air Force, Army, Marines, Clinton Township Manufactured parts, distributor and supplier for 14 44570 Morley Drive, Clinton Township 48036 president and CEO Navy and other government more than 500 companies. We also package and (586) 307-3450; www.cdssinc.com agencies crate for the military and other defense contractors LimnoTech Paul Freedman, president 7.4 Department of the Army TBD B Development and application of predictive 501 Avis Drive, Ann Arbor 48108 mathematical models to solve environmental 15 (734) 332-1200; www.limno.com challenges through multidisciplinary integration of science and engineering MDA-Information Systems LLC Herbert Satterlee, CEO 7.1 Department of Air Force Ypsilanti Develop two editions of its signature diagnostics 16 1200 Joe Hall Drive, Ypsilanti 48197 systems software, as well as for engineering studies (734) 480-5000; www.mdaus.com Trijicon Inc. Stephen Bindon, president 6.9 Department of the Navy Wixom Optical sighting and ranging equipment 17 49385 Shafer Road, Wixom 48393-2869 (248) 960-7700; www.trijicon.com MTU America Inc. Matthias Vogel, president 6.9 Department of the Navy Friedrichshafen, Manufactures large diesel engines, propulsion and 39525 MacKenzie Drive, Novi 48188 and CEO Germany (70 drive systems (248) 560-8888; www.mtu-online.com percent), 17 and Kristinehamn, Sweden (30 percent) Walbridge Aldinger Co. John Rakolta Jr., chairman 2.2 U.S. Army Corps of Engineers Ft. Bragg, N.C. Construction of federal facilities, automotive 777 Woodward Ave., Suite 300, Detroit 48226 and CEO manufacturing plants, higher education facilities, 19 (313) 963-8000; www.walbridge.com airport terminals, hospitals and industrial buildings FutureNet Group Inc. Perry Mehta, president and 1.7 Department of Interior Washington, DC Providing IT subject matter expertise for the 20 12801 Auburn St., Detroit 48223 CEO Department of Interior (313) 544-7117; www.futurenetgroup.com Pratt & Miller Engineering & Fabrication Inc. Jim Miller, president 0.1 NA NA Complete the build, integration, final testing and 29600 W. K. Smith Drive, New Hudson 48165 evaluation for the occupant centric platform and 21 (248) 446-9800 ; prattmiller.com technology enabled capability demonstrator test asset

This list of leading defense contractors is an approximate compilation of companies headquartered in Michigan with new contracts with the U.S. Department of Defense. Information was provided by the companies, U.S. Federal Procurement Data System and U.S. Department of Defense. It is not a complete listing but the most comprehensive available. Figures do not include contracts that are indefinite-delivery, indefinite-quantity, multi-vendor or subject to future task orders. NA = not available. B Work location will be determined with each order.

LIST RESEARCHED BY SONYA D. HILL CRAIN’S DETROIT BUSINESS // MAY 9, 2016 21 SPECIAL REPORT: SECOND STAGE Hardwired FOR GROWTH Longtime tech business gets ahead by staying current

By Tom Henderson sold it the microphones that such future The division and center supported his [email protected] stars as the Four Tops, the Temptations and decision to start designing and building The Great Recession struck fear into a the Supremes sang into. wireless local area networks and to devel- lot of business owners and executives. Despite its launch as the Depression be- op expertise in distributed antenna sys- It struck fear, too, into Matt O’Bryan, the gan, KLA was consistently profitable over tems, whereby small antennas are spaced COURTESY OF KLA LABORATORIES INC. president and CEO of Dearborn-based KLA the years, but O’Bryan said that streak throughout sports stadiums, conference A KLA bus, circa 1956. Laboratories Inc., a company that does a looked in jeopardy in 2007, as revenue and centers and large business enterprises like range of IT and communication services, profits tumbled. Although the Great Reces- hospitals, smoothing out cell reception KLA through the years including installing audio and visual sys- sion didn’t formally begin until December and eliminating the need for large, costly 1929: KLA Laboratories Inc. founded in Detroit, tems, building Wi-Fi networks and provid- 2007, KLA felt its impact months earlier as antennas. Such systems are complicated lands Ford Motor Co. as customer. ing event production services. Ford, seeing auto sales shrink, began cut- and require a lot of cabling and engineer- But O’Bryan didn’t see the recession as a ting back on the business it gave suppliers, ing to link such things as antennas, passive 1933: General Motors becomes customer. time for retrenching, he saw it as an oppor- including KLA. splitters, feeders and active-repeater am- 1935: Detroit Tigers become customer. tunity to reinvent a company that was O’Bryan decided to expand one of his plifiers. Previously, KLA supplied the ca- 1942: Chrysler Corp. signs as customer. founded on the eve of the Great Depres- lines of business. Instead of merely doing bling, and others did the engineering and sion in 1929. As a result of the reinvention, cabling for local area networks and Wi-Fi sold the hardware. revenue, profits and employment have networks that others were building, KLA “When KLA was founded in 1929, it was grown sharply. would begin installing and selling the an advanced-technology company. And It followed a long-held pattern of man- higher-margin hardware components that this let us remain an advanced-technology aging with an eye toward future growth by go into those networks. He also expanded company,” he said. Doing entire systems adjusting with the times. The year it was KLA’s geographic footprint, and formed a instead of just the cabling “has been a big founded, KLA began providing audio Network Services Division and a Network part of our growth.” equipment and services to Ford Motor Co. It Staging Center. O’Bryan, a member of the 2007 class of has been managing loudspeaker systems “Our market was shrinking. We were los- Crain’s 40 under 40, has been rewarded for for the Detroit Tigers since 1935, and when ing revenue. I felt if we didn’t get aggres- refusing to hunker down in the recession. Motown was founded in 1959 and not yet sive, we were going to be in trouble,” said known as Hitsville, U.S.A., it was KLA that O’Bryan. SEE KLA, PAGE 22

COURTESY OF KLA LABORATORIES INC. A 1942 war bond rally on Woodward Avenue.

1947: Pat O’Bryan hired. 1951: Detroit Lions sign as customer. 1954: Oakland Hills Country Club sign. 1956: O’Bryan becomes part owner. 1959: Company sells microphone to recording company soon to be called Motown. 1965: O’Bryan acquires controlling interest. 1973: Company moves to Dearborn. 1991: O’Bryan dies; his wife, Norma, becomes president. Matt O’Bryan is named vice president of operations and brother Donald VP of sales. 2002: Norma sells the business to Matt, Donald and their sister, Mary. Matt is named president and COO. 2007: In the face of the Great Recession, KLA expands to building wireless Wi-Fi networks and distributed antenna systems. KLA Laboratories President and CEO Matt 2010: Company installs Wi-Fi at University of O’Bryan has been Michigan football stadium. rewarded for being 2014: Company builds network at Michigan aggressive with the State University's stadium. company during tough economic times. 2016: Company opens o‰ces in Ohio and Nevada. PHOTO BY TOM HENDERSON 22 CRAIN’S DETROIT BUSINESS // MAY 9, 2016 SPECIAL REPORT: SECOND STAGE CHALLENGING CAREER • HIGHER EARNINGS • EXCITING FUTURE vice to the Tigers, KLA landed the In the 1940s and 1950s, KLA be- KLA Detroit Lions in 1951, Oakland Hills came a leading retailer and dis- FROM PAGE 21 Country Club in 1954 and The Palace tributor of radios, record players of Auburn Hills and the Detroit Pis- and sound equipment. Eventually, Pre-recession, KLA employed tons in 1987. Since 2010, it has in- it ran nine retail outlets, several in- 50 and had revenue of $10 million. stalled antenna systems at the Uni- side J.L. Hudson Co. stores. City bus- By 2009, KLA was down to 38 em- versity of Michigan’s Big House in es of the day had big banners on WLPH ployees and $6 million in revenue. Ann Arbor, Spartan Stadium at the side, advertising the “Ampro 0\ From 2010-2015, though, with Michigan State University and Ohio Hi-Fi 2-speed” tape recorders its expanded offerings, revenue Stadium at Ohio State University. available at the KLA store at 7375  climbed to $30 million, with prof- On April 8, KLA opened an of- Woodward Ave. for just $159. LVQRZ its up steeply. Today, the company fice in Grove City, Ohio, a suburb A photo on display at KLA’s tech employs 150 and could hit $40 of Columbus, to support its Buck- center shows tens of thousands of million in revenue this year. O’Bry- eye state customers, including the Detroiters jammed onto Wood- an expects to hire another 50. city of Columbus, Adena Health Sys- ward Avenue near the old Hud- Last June, the company opened tem, Ohio State and Big Lots. son’s building. It was a war-bonds its Technical Engineering Center On April 26, the company an- drive during World War II. There on Century Drive in Dearborn. Its nounced a deal with Phoe- are speakers visible in the photo. headquarters and sales and mar- nix-based Trucom, a subsidiary of They and the rest of the sound sys- keting offices remain at Chase internet services company TPT tem were installed by KLA. Road in Dearborn. Global Tech Inc., to provide an array In 1947, the company made a Earn your Master of The goal for clients of installing of services. KLA will open a west crucial hire, giving Pat O’Bryan a very expensive and labor-inten- region office in Nevada in June. job after he returned home from a Science degree at sive distributed antenna systems stint in the U.S. Army. O’Bryan be- is both social and commercial. The From humble beginnings gan purchasing stock from the DeVos Graduate School systems allow customers at large KLA was founded by three founders and by 1964 owned a sporting events, for example, to friends who gave the company its controlling interest. • Accounting get clear signals so they can tweet initials — James Kraus, David Lud- A reinvention occurred in 1973, about goals and tackles and share wigson and Stanley Almas. The when O’Bryan decided to sell off • Applied Economics photos on social media. company installed antennas, ra- the retail locations and concen- They are the same systems that dio transmission gear and trate on installing commercial • Finance allow fans at Tigers games to buy time-keeping systems for early electronic and communications game-used items through apps on customers such as Ford, General systems. Two of the old stores re- • Taxation their phones and have them deliv- Motors and Packard Motors. It also main in operation: Pointe Electron- ered to their seats, or to upgrade to installed sound systems at church- ics Co. in Grosse Pointe Woods and better, and more expensive, seats. es, schools, government offices Almas Hi-Fi Stereo Inc. in Royal Oak. At some venues, customers willing and sports venues. In 1978, KLA installed the ca- to pay extra can order food on It also, according to company bling system for GM’s first broad- Your time is valuable. their phone and have it delivered. lore, installed and operated sound band local area network and even- In addition to its 81 years of ser- systems at speakeasies. tually would install networks at 6\YJVU]LUPLU[ÅL_PISLHUKJOHSSLUNPUNWYVNYHTZ plants around the country. OLSWI\Z`WYVMLZZPVUHSZKL]LSVW[OLPUK\Z[Y`RUV^SLKNL In 1991, Pat O’Bryan died, with HUK[LJOUPJHSZRPSSZULLKLK[VZ[HUKV\[PU[VKH`»Z his wife, Norma, assuming the title MHZ[WHJLKNSVIHSLJVUVT` of president. Son Matt had a busi- Make a Big ness degree from Cleary University +L]LSVWSPMLSVUNJYP[PJHS[OPURPUNZRPSSZ+PZ[PUN\PZO but wasn’t sure what he wanted to `V\YZLSMPU`V\YJHYLLY+YP]LJOHUNLPU[OL^VYRWSHJL Impression do for a living. There were offers to 3LHYUMYVTPUK\Z[Y`L_WLY[Z buy the company, and his mother convened a family meeting. “It was a quick meeting,” said Matt. They would keep KLA in the family. Matt, who started with the company in shipping and receiv- ing when he was 16, was named vice president of operations. His brother, Don, headed sales. “It was the fork in the road in life,” said Matt. Your time is now. In 2002, Norma sold the compa- ny to Matt, Don and their sister, Mary, who started working at KLA in 1986, answering phones. Today, she is marketing director and in charge of business development. Open House Don is senior project manager of distributed antenna systems. Rob Todd, president of Hous- Learn more about our programs. ton-based Ampli„ed Solutions Inc., Meet the faculty. Change your life. has hired KLA as a contractor for jobs at the Palace, and DTE Energy Music Theatre. “KLA May 19, 2016 Large Format Graphics, Building Wraps, Banners, Flags, can do everything. They’re a big Vehicle Wraps, Event and Exhibit Graphic Solutions. part of our design-build,” Todd 4:30-7:00 PM We do more than provide graphic branding solutions that attract and said. “When they need to make de- inspire. Our mission is to evoke a unique emotional experience and leave cisions, they make them quickly, Northwood Troy Campus a lasting impression on our partners and their clients. As a national and their engineering is the best.” leader in large format graphics, we set the benchmark for quality. From Los Angeles-based 1500 W. Big Beaver Rd., Suite 103, Troy, Michigan our passionate team of creative designers, expert printers, and Boingo Wire- professional installers to our world-class facility and state-of-the-art less Inc. is installing Wi-Fi at Detroit technologies—we make you look remarkably good. Metropolitan Airport with KLA. “We gave KLA an aggressive schedule to get the network running by the middle of May, and they’re 800.622.9000 going to meet it,” said Steve Bouch- [email protected] • northwood.edu/graduate er, a Boingo vice president. “I’m iMBranded.com / (866) 717-4467 about to give them a project in Van Andel Arena in Grand Rapids.” CRAIN’S DETROIT BUSINESS // MAY 9, 2016 23

SPECIAL REPORT: SECOND STAGE Interior design company nds good 105

pay lures, retains good employees 145

By Gary Anglebrandt Alisha said. E N G I N [email protected] S E E R 60 About Scavolini Expert opinion: Some startups, E R S N

Scavolini is an Italian brand of Cucina Moda - Birmingham LLC dba especially the exciting-new-tech-  I G S kitchen and bath interior design Scavolini Store Detroit nology-backed-by-lots-of-ven- E D products. Sisters Niki and Alisha ture-capital kind, have the option Location: Birmingham

Serras, along with third partner of offering equity to get quality  

Description: Kitchen and bath 

(and husband to Alisha) Brian workers. This delays bigger com-  

furnishings and design 

Gamache, opened their Scavolini pensation bills in the early years. 

 INSPIRING

 dealership in Birmingham in 2010. Owners: Niki and Alisha Serras, Brian “Employees are not necessarily   They followed it up with a store there for the money. They’re  Gamache   RESULTS in Chicago in 2014 and have a lease banking on the future of the com-   Employees: 15   signed to open one in Boston this pany and are willing to take a   year. Washington, D.C., is another Revenue: $3.5 million in 2015 much lower salary,” said Dana  market in their sights. Thompson, a University of Michigan S C Problem: Issues with benefits they reinvest into the business, fig- law professor who runs the law I E N and compensation arose not long ured employees would have the school’s entrepreneurship clinic. T I S after the Chicago store opened. same scrappy motivation. But that’s not an option for T S One employee was fired and an- “We had the misconception that most traditional retail businesses. other quit, and the owners saw pay because we’re willing to kill our- Owners of these companies, then, was at the heart of the issue. selves for the good of our compa- should proceed with caution. Trying to save money in their ny, they’re going to be inspired like Careful planning will tease out, early years of business, they’d that, too. That’s obviously not the first, the recognition that more veered toward the low end of the case,” Niki said. expensive people will be needed pay scale in their industry. They The issue caused a rethinking of and, second, whether the finan- did not offer health insurance. how the owners wanted their com- cials justify opening a new loca- That this was a problem became pany to be — comfortable and sta- tion using this expensive talent. clearer when they struggled to find ble. There’s a practical side to this, “Wait to see how things work ),6+%(&.7+203621&$55 +8%(5,1& replacements. In one case they too. “Negativity or frustration or with one location and then go HQJLQHHUV_VFLHQWLVWV_DUFKLWHFWV_FRQVWUXFWRUV made an offer that was rejected. aggravation — if that’s what clients from there,” Thompson said, even 1RYL_0DFRPE__IWFKFRP For stores where just two or experience when they walk in, if that means slowing things three salespeople handle the lion’s they’re not going to buy a kitchen,” down. share of the business, the loss of these employees was devastating. The owners pitched in to fill the gap, which served to keep the business alive, but not growing. COMMERCIAL LENDING | TREASURY MANAGEMENT | BUSINESS SERVICES “We remained stagnant, and for any new business, that’s like the hand of death,” Niki said. The whole affair cost the busi- ness about $1 million. “It set back our second year in business (in Chicago). It was like our first year all over again,” Alisha said. Solution: The solution was obvi- ous: Pay up. State-of-the-art technology. They increased benefits and compensation by $15,000 to $20,000 per worker, a cost that in- cluded new health insurance, vi- sion and dental coverage. Local banking know-how. This caused compensation costs to increase 20 percent from 2014 to 2015. Risks and considerations: While Your hometown the solution was obvious, its effec- tiveness was less so. It takes up to a year to get a per- son trained, Niki said. Between advantage. making the sale and then design- ing and constructing a client’s project, there’s a long lead time of several months on deals, so prov- en experience is slow to come. If a new, and now better-paid, Banking local means our experts are always by your side. Whether providing local insight to market conditions or guiding you employee doesn’t fit, it might be a with state-of-the-art products designed to optimize cash flow and finance growth, you can count on us for world-class banking. year before it’s obvious. And then Since 1917, we’ve been anchored right here in our community helping businesses move forward with decisions that come out the company is back at square of our office – and not out of state. It’s banking big…even when you’re banking local. one, with another year to repeat the same process. Since the changes were made so Give us a call today. recently, and not all at once, the www.thefsb.com/business | 866-372-1275 owners aren’t sure if the invest- ment will lead to more revenue. But they don’t see any going back. Previously the owners, who take little salary for themselves as DBpageAD_DBpageAD.qxd 4/26/2016 1:59 PM Page 1

Thank you.

As we celebrate our 75th year, our gratitude toward Michigan businesses has never been greater. From good times to bad and back again, we’ve been honored to partner with hundreds of terrific organizations. Our commitment to Pure Michigan Business Connect has introduced us to even more great leaders we hope will also benefit from The Rehmann Experience — our forward- thinking service model that offers more ideas, more service and more experience.

RACHEL LOCRICCHIO, CPA RYAN KRAUSE, CPA CHRISTINE SLADE, CPA Senior Manager Principal Senior Manager [email protected] [email protected] [email protected]

CPAs & Consultants Wealth Advisors Corporate Investigators rehmann.com CRAIN’S DETROIT BUSINESS // MAY 9, 2016 25 CRAIN'S LIST: LARGEST MICHIGAN ACCOUNTING FIRMS Ranked by number of Michigan employees (Includes Southeast Michigan employees) Number of Number of Number of employees Michigan Number of Number of Number of Number of Number of CPAs employees Southeast employees Michigan Michigan Michigan CPAs Southeast Company in Michigan Michigan engaged in employees employees employees Michigan Michigan Address Jan. 2016/ Jan. 2016/ audit/ engaged in engaged in engaged in Jan. 2016/ Jan. 2016/ Rank Phone; Website Managing partner(s) 2015 2015 accounting taxes consulting other 2015 2015 Plante Moran PLLC Gordon Krater 1,503 1,062 504 287 379 333 617 401 1 27400 Northwestern Highway, Southfield 48037 1,440 1,013 593 387 (248) 352-2500; www.plantemoran.com Deloitte LLP and its subsidiaries Mark Davidoff 1,083 1,001 415 248 252 168 315 278 2 200 Renaissance Center, Suite 3900, Detroit 48243-1895 1,059 977 NA 265 (313) 396-3000; www.deloitte.com PricewaterhouseCoopers LLP Ramesh Telang 764 764 387 168 115 94 421 421 3 500 Woodward Ave., Detroit 48226 791 761 408 415 (313) 394-6000; www.pwc.com Ernst & Young LLP George Lenyo 674 589 194 192 179 109 253 212 4 777 Woodward Ave., Suite 1000, Detroit 48226 647 562 NA 205 (313) 628-7100; www.ey.com Rehmann LLC Randy Rupp 605 288 189 113 165 138 257 132 5 1500 W. Big Beaver Road, 2nd Floor, Troy 48084 575 260 NA 124 (248) 952-5000; rehmann.com BDO USA LLP Fred Rozelle, Assurance 562 135 155 180 4 223 147 52 755 W. Big Beaver Road, Suite 1900, Troy 48084 Regional and Office Managing 481 110 140 44 6 (248) 362-2100; www.bdo.com Partner; John Marquardt, Tax Office Managing Partner KPMG LLP Heather Paquette 352 291 72 78 132 70 71 71 7 150 W. Jefferson Ave., Suite 1900, Detroit 48226 334 283 NA 141 (313) 230-3000; www.kpmg.com UHY LLP Thomas Callan, CEO 351 351 120 111 56 64 169 169 8 Chrysler House, 719 Griswold St., Suite 630, Detroit 48226 330 330 NA 145 (313) 964-1040; www.uhy-us.com Doeren Mayhew & Co. PC Mark Crawford 226 225 107 59 15 45 97 96 9 305 W. Big Beaver Road, Suite 200, Troy 48084 204 204 88 88 (248) 244-3000; www.doeren.com Yeo & Yeo PC Thomas Hollerback, president 215 37 46 34 42 93 86 22 10 3023 Davenport, Saginaw 48602 and CEO 215 40 85 25 (989) 793-9830; www.yeoandyeo.com Crowe Horwath Chuck Frayer, office managing 196 11 35 57 66 38 76 3 55 Campau Ave. N.W., Grand Rapids 49503 partner NA NA 62 NA 11 (616) 774-0774 ; www.crowehorwath.com/offices/ grandrapids/ Baker Tilly Virchow Krause LLP Marina Houghton 123 123 46 32 27 18 43 43 12 2000 Town Center Suite 900, Southfield 48075 130 130 NA 92 (248) 372-7300; www.bakertilly.com Grant Thornton LLP Dan Zittnan 104 104 59 25 14 6 39 39 13 27777 Franklin Road, Suite 800, Southfield 48034 101 101 NA 41 (248) 262-1950; www.grantthornton.com Cohen & Co. B Robert MacKinlay 77 77 16 40 8 13 26 26 14 21420 Greater Mack Ave., St. Clair Shores 48080 77 77 NA 30 (586) 772-8100; www.cohencpa.com Clayton & McKervey PC Robert Dutkiewicz 71 71 43 14 3 11 31 31 15 2000 Town Center, Suite 1800, Southfield 48075 67 67 NA 34 (248) 208-8860; www.claytonmckervey.com Gordon Advisors PC Alan Steinberg, CPA and David 62 62 28 16 11 10 62 31 16 1301 W. Long Lake Road, Suite 200, Troy 48098-6319 Bojanic, CPA 62 62 NA 31 (248) 952-0200; www.gordoncpa.com Mattina Kent & Gibbons Vincent Mattina Jr CPA 41 27 31 24 15 9 21 21 17 1214 N. Main St., Rochester 48307 37 25 21 13 (248) 601-9500; www.mkgpc.com Derderian, Kann, Seyferth & Salucci PC Ursula Scroggs 37 37 26 29 12 0 20 20 18 3001 W. Big Beaver, Suite 700, Troy 48084 35 35 NA 19 (248) 649-3400; www.DKSScpas.com Echelbarger, Himebaugh, Tamm and Co. David Echelbarger, CPA, CGMA 34 0 9 16 5 4 9 0 19 2301 East Paris Avenue SE, Grand Rapids 49546 NA NA NA NA (616) 575-3482; www.ehtc.com Fenner Melstrom and Dooling PLC Michael Gottshall 32 32 12 20 6 3 19 19 20 355 S. Old Woodward, Suite 200, Birmingham 48009 32 32 NA 19 (248) 258-8900; www.fmdcpas.com Polk and Associates PLC Richard Williams 32 32 20 6 0 6 8 8 20 30600 Telegraph Suite 2191, Bingham Farms 48025 NA NA 8 NA (248) 645-5700; www.polkcpa.com Alan C. Young & Associates PC Alan Young 31 31 23 3 2 3 7 7 22 7310 Woodward Ave., Suite 740, Detroit 48202 30 30 7 7 (313) 873-7500; www.alancyoung.com Edwards, Ellis, Stanley, Armstrong, Bowren, Krizan & Co. Richard Edwards 29 29 7 14 2 6 16 16 PC 30 30 16 16 23 2155 Butterfield Drive, Suite 305A, Troy 48084 (248) 643-4545; www.cpasandadvisors.com Metzler Locricchio Serra & Co., P.C. Michael Locricchio 28 28 21 20 20 21 9 9 24 1800 W. Big Beaver Road, Suite 100, Troy 48084 28 28 NA 9 (248) 822-9010; www.mlscocpa.com Iannuzzi, Manetta & Co. PC Frank Iannuzzi 27 27 19 4 0 4 15 17 25 1175 W. Long Lake Road, Suite 201, Troy 48098 29 29 NA 13 (248) 641-0005; www.imc-cpa.com MRPR Group PC Mark Rottermond 27 27 13 10 1 3 19 19 25 28411 Northwestern Highway, Suite 800, Southfield 48034 27 27 NA 17 (248) 357-9000; www.mrpr.com

This list of accounting firms is an approximate compilation of the largest such companies in Michigan. It is not a complete listing but the most comprehensive available. Unless otherwise noted, information was provided by the companies. Companies with headquarters elsewhere are listed with the address and top executive of their main Michigan office. NA = not available. B Formerly Godfrey Hammel, Danneels & Co. PC. Bought by Cohen & Co. Ltd. of Cleveland in January and rebranded as Cohen & Co., effective Feb. 1.

LIST RESEARCHED BY SONYA D. HILL 26 CRAIN’S DETROIT BUSINESS // MAY 9, 2016 CRAIN'S LIST: LARGEST STAFFING-SERVICE COMPANIES Ranked by 2015 revenue No. of offices Company Revenue Revenue Average daily No. of W-2 in Address ($000,000) ($000,000) employment Annual payroll forms issued metro Detroit Rank Phone; website Top local executive(s) 2015 2014 2015 2015 2015 2015 Kelly Services Inc. Carl Camden $5,518.2 $5,562.7 150,000 NA 550,000 8 1 999 W. Big Beaver Road, Troy 48084 president and CEO (248) 362-4444; www.kellyservices.com Tata Technologies Inc. Warren Harris, CEO and managing 420.0 424.0 NA NA 775 2 2 41050 W. 11 Mile Road, Novi 48375-1302 director (248) 426-1482; www.tatatechnologies.com Acro Service Corp. Ron Shahani 318.3 260.2 4,000 171.3 13,000 2 3 39209 W. Six Mile Road, Suite 250, Livonia 48152 president and CEO (734) 591-1100; www.acrocorp.com The Bartech Group Inc. B David Barfield 305.5 243.3 4,397 128.0 2,270 1 4 27777 Franklin Road, Suite 600, Southfield 48034 chairman, president and CEO (248) 208-4300; www.bartechgroup.com Strategic Staffing Solutions Inc. Cynthia Pasky 303.0 264.0 3,200 190.0 3,000 2 5 645 Griswold St., Suite 2900, Detroit 48226 president and CEO (313) 596-6900; www.strategicstaff.com Vision Information Technologies Inc. David Segura, CEO; 251.0 219.0 NA NA NA 1 6 3031 W. Grand Blvd., Suite 600, Detroit 48202 Christine Rice, president (877) 768-7222; www.visionit.com Stefanini Inc. Antonio Moreira, CEO, North America 220.0 200.0 1,436 0.0 2,117 1 7 27335 W. 11 Mile Road, Southfield 48033 and Asia-Pacific (800) 522-4400; www.stefanini.com Danlaw Inc. Raju Dandu 118.2 90.0 182 18.9 228 3 8 41131 Vincenti Court, Novi 48375 chairman and CEO (248) 476-5571; www.danlawinc.com Technical Engineering Consultants Kurt Mains 74.6 63.5 800 NA NA 1 9 850 Stephenson Highway, Suite 600, Troy 48083 senior vice president (248) 720-5020; www.tec.biz; www.battoninc.com Altimetrik, Corp. Tim Manney 70.0 71.1 C NA 14.2 252 1 10 1000 Town Center, Suite 700, Southfield 48075 president (800) 799-9625; www.altimetrik.com

This list of temporary-employer/staffing-service companies and companies that provide such services is an approximate compilation of the largest companies in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. It is not a complete listing but the most comprehensive available. Crain's estimates are based on industry analyses and benchmarks, news reports and a wide range of other sources. Unless otherwise noted, information was provided by the companies. Companies with headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. NA = not available. B Acquired by the UK staffing company, Impellam Group plc in December 2015. C Company estimate. GC Financing Experience In Your Corner.® Ŷ Financial matters, business and corporate matters, nancial transactions, real /$67 property, acquisition and commercial nancing transactions. Ŷ Startup to mid-size companies, corporate &+$1&( governance and private equity matters. TO REGISTER FOR METRO DETROIT’S LARGEST GATHERING OF IN-HOUSE ATTORNEYS TUESDAY MAY 17 3 - 8:30 P.M. THE WESTIN BOOK CADILLAC, DETROIT

Contact Kristen Veresh at [email protected] Ŷ Detroit Ŷ Novi Ŷ Grand Rapids Ŷ Kalamazoo Ŷ Grand Haven Ŷ Lansing Ŷ Ann Arbor Ŷ Hastings REGISTER: CrainsDetroit.com/events CRAIN’S DETROIT BUSINESS // MAY 9, 2016 27 ACQUISITIONS & Automotive Industry Action Group, STARTUPS MERGERS Southfield, has developed an Dra‰ing Table Brewing Co., a local Butcher & Butcher Construction, e-learning platform for the microbrewery, has opened at Rochester Hills, and G.A. Frisch materials management operations 49438 Pontiac Trail, Wixom. Construction, Troy, are merging guideline/logistics evaluation, a Telephone: (248) 956-7279. and moving operations to B&B’s DEALS & supply chain management process. Website: draftingtablebeer.com. headquarters, will assume the Website: aiag.org. B&B name and continue to The Yoga Garden, a local yoga provide roofing, sheet metal, glass Automotive Industry Action Group, studio, has opened at 31815 and other services to the upper Southfield, has created an online Southfield Road, Suite 14, Beverly Midwest and Florida. Website: DETAILS portal to help connect OEMs and Hills. Telephone: (248) 792-3387. bbconstruction.com. Michigan, Wisconsin and Illinois up information. Website: aseonline.org. suppliers who have lost returnable Website: yogagardenbh.com. to $100 each for back-to-school transport items with those who Preh Inc., Novi, a member of the supplies through Quill.com. Bianchi Public Relations Inc., Troy, is have found them. Website: aiag.org. Deals & Details guidelines. Email Joyson Group, an automotive Websites: meemic.com, quill.com. offering an infographic that [email protected]. Use systems supplier and automation highlights the five biggest social Olga’s Kitchen, Livonia, was to any Deals & Details item as a model specialist, acquired TechniSat American Society of Employers, media mistakes area firms are unveil its new Sunday brunch for your release, and look for the Automotive, Daun, Germany, and Livonia, announced a new website making. It is part of its mission to service and menu on Mother’s appropriate category. Without will operate as Preh Car Connect with a dashboard where members help Detroit-area professional Day, May 8. The brunch service complete information, your item will GmbH. Websites: preh.com, can access benchmark data, service firms enhance social media starts at 10 a.m. at all locations. not run. Photos are welcome, but we technisat.com. research portals and membership marketing. Website: bianchipr.com. Website: olgas.com. cannot guarantee they will be used.

CONTRACTS Atlas Oil Co., Taylor, announced its investment in FuelNow network, developed by Vixta Solutions LLC, Birmingham, a cloud-based platform that automates the supply chain and streamlines the fuel delivery process. Websites: atlasoil.com, vixtasolutions.com.

NEW PRODUCTS Altair Engineering Inc., Troy, has ]'ZGEWVKXGUGTKGU_ added a multiscale designer application to its HyperWorks software suite. The application is History repeats itself. Will you be ready? a tool for the development and simulation of multiscale material models, and adds new composites Today’s forward-thinking executives are facing a critical expertise to the HyperWorks suite. decision: How do I maintain my business’s growth Website: altair.com. and profitability, yet prepare for future uncertainty? Boreas Systems, Troy, which offers nitrogen-based refrigeration systems for truck trailers, introduced a dual zone cooling Get practical answers from system that allows users to set two Plante Moran experts via an separate temperate conditions online executive series led by within the same truck. Website: Managing Partner Gordon Krater. boreassystems.com.

GKN Automotive, Auburn Hills, part of GKN PLC, and Volvo announced the new Volvo S90 plug-in hybrid. May 26 Effective strategies for customer growth: By producing an eAxle system What C-suite executives should know that fits in the same space as a standard rear drive module, the June 2 Cutting through the data analytics hype innovation enables Volvo cars to offer customers a plug-in hybrid June 9 Selling your business: Timing is everything upgrade. Website: gkn.com. June 16 How to deploy a flexible approach to McKeon Products Inc., Warren, real estate announced the availability of the new LunaGuard, which provides June 23 Strategy and contingency planning: Is your improved protection against company prepared to take advantage of nighttime teeth grinding, more the next economic downturn? comfort when in use, and consumer health care savings. Website: macksearplugs.com. All sessions are at 1:00 p.m. EDT.

Living Essentials LLC, Novi, the Double-booked? distributor of 5-hour Energy shots, debuted a limited-edition, extra- Each session will be available to download after the webcast. strength, cherry flavored shot that will support military causes. The company will donate 5 cents from every sale of the specially marked bottles to the Special Operations To learn about the presenters and Warrior Foundation. Website: 5hourenergy.com. register for the series, go to executives.plantemoran.com. NEW SERVICES The Meemic Foundation, Auburn Hills, and Quill.com, Lincolnshire, Ill., have launched Quill.com Back to School Grants, a program that will award 1,500 teachers across 28 CRAIN’S DETROIT BUSINESS // MAY 9, 2016 WEDNESDAY UPCOMING EVENTS MAY 11 Annual Automotive Roundtable. 5-8 PEOPLE: An Inside Look at The Rio Olympics p.m. May 18. Marketing and Sales with Bob Costas. 11:30 a.m.-1:30 Executives of Detroit. Moderator SPOTLIGHT p.m. Adcraft Detroit. NBC host CALENDAR Dave Andrea, executive vice Denso International Costas will discuss the upcoming chairman and CEO, General include Kirk Steudle, director, president of research, Center for America names Ito as CEO Rio Olympics, the headlines Motors Co. Guest speakers and Michigan Department of Automotive Research, leads a panel leading into the world’s biggest panelists include Joseph Bradley, Transportation, and Maurice Cox, of auto executives to discuss Kenichiro Ito has been named event, and the network’s chief business offi cer and global planning director, city of Detroit. opportunities, challenges and CEO of Southfi eld-based Denso preparations for the games. head of Internet of Things works, Infrastructure panel members successes of auto suppliers. International America Inc. as part Baldwin Theater, Royal Oak. $40 HCL Technologies; Linda Dillman, include Jennette Smith, editor, Panelists include Ken Hopkins, of several top management members; $50 nonmembers; $25 chief information offi cer, QVC; Crain's Detroit Business; Michael president/CEO, Neapco Holdings changes at the Japanese auto junior/student members. Website: Sheila Jordan, CIO, Symantec; Beth Ford, CEO, Regional Transit Authority LLC; Kim Korth, president/CEO, parts supplier. adcraftdetroit.com. Niblock, CIO, city of Detroit; of Southeast Michigan; Sue Techniplas Group and DMP; and Effective June 21, Ito will also Manjula Talreja, senior vice McCormick, CEO, Great Lakes Water Jonathan DeGaynor, president/CEO, be chairman of Denso’s North THURSDAY president, customer success, Authority; Palencia Mobley, deputy Stoneridge Inc. Sheraton, Novi. $50 American board of directors. MAY 12 Salesforce; Paula Tolliver, CIO/vice director/chief engineer, Detroit members; $65 nonmembers. He had been executive director WLAM-Wayne Regional Annual president of business services, Water and Sewerage Department. Website: msedetroit.org. for corporate planning, fi nance Meeting. 11:30 a.m.-1 p.m. Women Dow Chemical; Marcy Klevorn, vice Educational breakout sessions are and accounting and business Lawyers Association of Michigan. president/CIO, Ford Motor Co.; included. Cobo Center, Detroit. DEC Presents Ryan Lance. 11:30 innovation at parent Denso Panel members will discuss Randy Mott, senior vice president $50 Centennial Celebration. $175 a.m.-1:30 p.m. May 25. Detroit Corp. in Japan. Ito replaces election law and voting rights this and CIO, GM; and Ryan Talbott, members; $250 nonmembers; Economic Club. Lance, chairman Sadahiro Usui, named CEO of year. Panelists include former Sen. vice president/CIO, Fiat Chrysler $85 government agency members and CEO of ConocoPhillips, will be Denso International Europe. Carl Levin from the Levin Center; Automobiles-North America and for infrastructure conference. guest speaker. Westin Book Hisaaki Sato takes over as , dean of Wayne State Asia Pacifi c. Moderators: Mary Phone: (517) 332-2066. Website: Cadillac, Detroit. $45 DEC COO of Denso International University Law School; Melvin Kramer, publisher, Crain’s Detroit acecmi.org. members; $55 guests of DEC America, essentially swapping “Butch” Hollowell, corporations Business, and Jennette Smith, members; $75 nonmembers. jobs with Kazumasa Kimura, who counsel from the city of Detroit; editor. Cobo Center, Detroit. $50 The Positive Business Conference. 9 Contact: (313) 963-8547; email: returns to Japan to take Sato’s and Judy Karandje„ , president of MCWT members; $140 a.m.-10 p.m. May 12, 9 a.m.-4:15 [email protected]. post as executive director of the the League of Women Voters of nonmembers. Phone: (248) p.m. May 13, University of Michigan global sales and business Michigan. Miller Canfi eld, Detroit. 218-2578. Website: mcwt.org. Ross School of Business. Grand development, global business $40 advance; $50 at the door; $30 prize winner of the Positive Calendar guidelines. Visit planning, Chubu sales and law students. Contact: Deanne THURSDAY-FRIDAY Business Project, an annual crainsdetroit.com and click “Events” Hiroshima sales divisions. Also, near the top of the home page. Bonner Simpson, phone: (313) MAY 12-13 contest celebrating organizations Satoshi Inukai has been Then, click “Submit Your Events” 596-9500; email: dlb@ American Society of Civil Engineers that deliver change through promoted to senior director of from the drop-down menu that will bonnerdisalvo.com. Michigan Section Centennial positive business practices, will Global Denso and will be chief appear. Fill out the submission form, Celebration and Infrastructure be announced. Ross School of manufacturing offi cer of Denso then click “Submit event” at the Executive Connection Summit 2016: Conference. 6 p.m. May 12 to 6 Business, Ann Arbor. $425 and International America. bottom of the page. Thriving on Disruptive Technology. 8 p.m. May 13. ASCE, American up. Contact: Angie Ceely, phone: a.m.-2:30 p.m. Michigan Council Council of Engineering (734) 764-2811; email: aceely@ More Calendar items can be found Striebich new St. Joseph of Women in Technology. With Companies and Urban Land umich.com. Website: at crainsdetroit.com/events. special keynote by Mary Barra, Institute. Keynote speakers positivebusinessconference.com. Mercy Oakland president Ann Arbor-based St. Joseph Mercy Health System named ADVERTISEMENT SECTION COO Shannon Striebich president of ADVERTISING & ADVERTISING & St. Joseph MARKETING MARKETING Mercy Oakland hospital in Pontiac. She Amanda Broadwater wil succeed Project Manager the retiring MVP Collaborative Jack Weiner on Amanda Broadwater has Striebich July 1. joined the MVP Striebich ADVERTISING & Collaborative team as an joined St. Joseph Mercy Oakland Associate Producer/ Project Manager in 2002 and has held a variety of MARKETING Amanda has worked for over 6 years in video/ posts, including director of lm production for numerous feature lms, facility planning and operations commercials and industrial videos. She has and associate vice president of Mary Louise Luczkowski also worked as a project manager on many performance leadership. Vice President Strategy projects. She will be helping on consumer events, digital projects, and video production. Rock Ventures taps Uhl MVP Collaborative MVP Collaborative is an award-winning, MVP Collaborative appointed Mary Louise full-service Experiential Marketing company. Rock Ventures LLC has named Luczkowski as Vice President Strategy. Her former Skillman Foundation focus extends across strategy, research, executive and innovation for MVP and its client Sarah Cantu Chris Uhl to the newly partners. Her strategic planning and Executive Producer executive leadership spans 20 years created Daryl Clasen crossing multiple industries. Mary Louise’s MVP Collaborative position of Senior Vice President/ work at a boutique management Sarah Cantu has been hired vice Managing Director consulting rm led to improved customer as an Executive Producer at president of engagement and brand development. MVP Collaborative. A corporate Competition Graphics MVP Collaborative provides full-service 23-year marketing and video/ lm production giving. Uhl, Daryl Clasen has been promoted to Senior Strategic Experiential Marketing services to industry veteran, she’ll manage creative, who had Vice President/Managing Director of a variety of clients. digital marketing, strategy and video Uhl served as vice Competition Graphics. He will implement productions for a variety of clients including a president of the organization’s vision and mission, strong focus on OnStar. Sarah is an award- social innovation for Skillman oversee sales and the development of new winning producer and a graduate of the since 2012, joined Detroit- business, and manage sta„ , client services, For more information University Of Miami with a Bachelor’s of based Rock Ventures April 18. production and nances. He will also have or questions regarding advertising Science in Communications. MVP Uhl, a member of Crain’s 2014 a leadership role at J. R. Thompson. CG is a in this section, please call Collaborative is a full-service Experiential 40 under 40 class, spent eight leading supplier of automotive and Marketing company. years as a banker at LaSalle Bank Lynn Calcaterra at (313) 446-6086 or motorsports graphics. JRT is a marketing (now Bank of America), Comerica communications rm driven by everyday email: [email protected] Bank and PNC Bank. invention and collaboration. CRAIN’S DETROIT BUSINESS // MAY 9, 2016 29 May 9, 2016 CRAIN’S DETROIT BUSINESS Page 29 3-D in R&D makes an imprint on automotive suppliers By David Sedgwick under the stress of everyday use, so they pri- Low cost is not the technology’s value Automotive News marily were used for prototypes, mainly suit- proposition. And for most mass-produced It seemed like a cute stunt two years ago able for R&D uses or for display. components, 3-D printers will not be com- when a little-known startup called Local Mo- But the technology has evolved and is petitive with injection molds, Rhinehart not- tors took to the streets of Las Vegas with a car creeping into other industries, such as aero- ed. But if a subassembly of four or five pieces built largely of parts made with a 3-D printer. space and medical products. can be replaced by a single 3-D-printed com- But cute no more. The printers now being used for commercial ponent, a manufacturer can cut cost, reduce The auto industry is beginning to take purposes by Carbon3D, for example, are up to weight and simplify assembly, he said. 3-D-printed car parts seriously. 3-D printers, 100 times faster than previous-generation once little more than handy tools for quickly DELPHI/JOHN F. MARTIN printers. They can turn out objects in a variety Warehouses beware creating a one-off prototype part, suddenly Jerry Rhinehart, additive manufacturing technolo- of raw materials, and their parts match the The emerging science also has implications are emerging as a practical alternative for gy manager, operates a Carbon3D printer at Delphi’s strength of parts produced by injection molds. for the aftermarket and service parts business. low-volume automotive production. Champion Technical Center in Warren, Ohio. Since 3-D printing is best suited for pro- Resins Carbon3D, a startup based in Redwood City, Suppliers and automakers now believe duction runs of 50,000 units or less, it may Calif., is supplying production parts made they can sidestep some of that investment A Carbon3D new 3-D printer resembles a find a niche in making parts that have low from polymers to BMW AG and Ford Motor Co. and time-consuming effort by using advanced hot water heater with the middle section demand — for instance, for a trim part on a Mini models use a 3-D-printed decorative printers that build finished parts to spec by missing. On a shelf at waist height sits a tray of 12-year-old vehicle. A parts retailer such as side trim, while the Ford Transit Connect building them up from digital designs. liquid resin. Via a photochemical process, in- Pep Boys could maintain its own printers to has been fitted with damping bumper parts. coming light hardens the resin as it takes the spit out replacement parts as customers or- Technology advances Carbon3D is working with Troy-based Del- shape of a component. Oxygen prevents it der them, rather than requiring factories to phi Automotive LLC to line up more customers. The technology “has definitely advanced from sticking to the tray printer. A component build them and warehouses to store them. Others also are jumping into the technology. a lot over the last several years,” said Deb rises out of the resin pool in one piece, rather The technology’s aftermarket potential got In September, Alcoa invested $60 million Holton, director of industry strategy for than requiring multiple layers of material. a publicity boost in 2014 when astronauts at in its Pittsburgh R&D center to develop 3-D Dearborn-based SME, formerly the Society of “Since you get rid of the layers, you get a the International Space Station handily print- printers that could form components from Manufacturing Engineers. “That’s their dream higher-quality part,” said Kirk Phelps, Car- ed a 4-inch-long ratchet wrench they needed, aluminum, titanium and other alloys. — to make parts without using a mold.” bon3D vice president of product management. made from 104 layers of plastic. Meanwhile, General Electric has begun us- Carbon3D hopes to supplant traditional Last year, Carbon3D leased its printers to a The back-room shop at Pep Boys might not ing 3-D printers to manufacture fuel nozzles injection molds on low-volume production group of early adopters for $40,000 a year per be glamorous, but that’s where this technolo- out of powdered metals for jet engines. runs of 50,000 units a year or less. machine. One of those customers is Delphi, gy may find a home, said Thomas Kurfess, a The emerging practice — also called addi- Until now, skepticism about 3-D printing which now wants to find out whether 3-D mechanical engineering professor at Georgia tive manufacturing — has enormous implica- has had less to do with the basic science printing is a practical production technique Tech and a member of SME. tions for the auto business. Manufacturers than with the practicality of relying on it on for mass producing electrical components. “Pep Boys could download a digital file spend huge amounts to tool up assembly unforgiving factory schedules. Jerry Rhinehart, Delphi’s manager of ad- from General Motors and print it,” Kurfess lines to make auto parts. Tools and dies must Printers have been slow until now. They ditive manufacturing development, said he said. “So GM doesn’t have to worry about in- be created to produce early prototypes of could work with only a few raw materials. The will install 3-D-printed connectors and oth- ventories or the tooling to produce it. They parts, often repeatedly as engineers try to get durability of the objects produced was mini- er electrical components in a 25-car fleet could get a tremendous increase on their new parts to meet in line with design specs. mal. The layered component could crumble this June for road tests. profit margins.”

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PHOTOS COURTESY 826MICHIGAN The Detroit Robot Factory store and a creative writing lab will occupy this space on Eastern Market’s Winder Street. The HUB 3,500-square- FROM PAGE 3 foot writing lab on the second oor In downtown Ann Arbor, the will host school storefront is called the Liberty eld trips, Street Robot Supply & Repair, which workshops and sells robot kits and robot-themed aer-school novelties and toys that produce programs. enough revenue to cover rent, Uhle said. In Eastern Market, it will oper- ate the Detroit Robot Factory, sell- ing similar products but also new “We’re at the point where we’ve named a finalist in Crain’s Best Detroit-centric ones developed by recruited so many volunteers and Managed Nonprofit contest. local graphic designers and art- work with so many educators and It employs nine people who ists. students and families that the next work between Detroit, Ann Arbor The site will host creative writ- step is to have a full-service, drop- and Ypsilanti, where 826 takes ing field trips for area schools, tu- in center that’s open to all,” Uhle over Beezy’s Café in the evenings toring beginning in January, and said. for drop-in tutoring. creative writing workshops and Last year, 826michigan reached As 826 ramps up new programs related programs later in 2017. 3,200 students, more than 500 of at the Eastern Market site, it’s look- them in Detroit. Its 2015 surveys ing for a program coordinator, designed to gauge its impact “someone who has deep connec- found: tions in the Detroit education n 100 percent of teachers whose community and who respects classrooms visited 826michigan school-age students and their for a field trip viewed the organiza- work in the way we do and can Blue Cross Blue Shield of Michigan is a nonpro t corporation and tion as a good resource for teach- help coordinate the program with independent licensee of the Blue Cross and Blue Shield Association. ers. educators, volunteers and the n 73 percent of students who public,” Uhle said. participated in its most recent 826michigan has built strong book publishing project said at the relationships with students, fami- beginning of the project that they lies and volunteers across the city Creti  liked to write. By the end of the over the past few years, Kresge school year, 100 percent said they said. liked writing. “In addition to serving as a hub n 9 percent of students who vis- for programs, the Detroit Robot helthy ited 826michigan for after-school Factory will meaningfully contrib- tutoring said they felt more confi- ute to the vibrancy and range of dent completing their homework activity in Eastern Market, com- workforce: on site with the nonprofit. plementing other unique spaces “We also look at things like at- for creative expression such as Sig- tendance as well at our drop-in nal-Return, the Red Bull House of Art Strategies to engage programs to determine if the pro- and Salt & Cedar alongside all of grams are still relevant,” Uhle said, the many important amenities employees through noting that an increasing number that draw thousands to the market of students are being served across every week,” said George Jacob- wellness programs the board in its programs. sen, senior program officer. About 600 volunteers with In addition to enlivening the 826michigan work with students street where it is located, 826michi- on writing and tutoring, staffing gan is helping repurpose an older ee Webir the store and planning special building that would be hard to con- events. About 100 of them are in vert to food use, while also sup- Detroit, Uhle said, noting the or- porting Russell Street as a primary Thursday, June 2 ganization will need many more to shopping district, said Eastern Mar- fully launch all of its programs. ket Corp. President Dan Carmody. Noon - 1 p.m. This year, the organization is “Its focus on youth and families operating on a budget of about helps us to keep the Eastern Mar- Register at $825,000, with revenue coming ket District a place that welcomes from grants, donations, events everybody,” he said. CrainsDetroit.com/webinars and its store sales. That’s up from Sherri Welch: (313) 446-1694 $425,000 in 2013, when it was Twitter: @SherriWelch CRAIN’S DETROIT BUSINESS // MAY 9, 2016 31 Planning expert: Hudson’s site could open national retail doors Plans by a Dan Gilbert-affiliated Gibbs: I think the existing base- That’s the traditional way of devel- entity for the site of the former J.L. line demographics are there to oping mixed-use buildings. Hudson’s department store on support those sort of retailers now, I don’t know anything about Gil- Woodward include at least 225,000 and they are only getting better bert’s or Rock’s finances — I’ve square feet of mixed-use space — with 1,000 or 1,500 new (apart- consulted with them, but don’t including dozens of potential re- ment) units coming into the mar- know anything about their financ- tailers and restaurants — plus at ket. But its trade area includes es. I see it as an income-generat- least 700 parking spaces and a parts of Grosse Pointe and parts of ing use. minimum of 250 residential units Dearborn. Those tenants tend to And it will become an amenity to support high demand for down- have a 5 to 7 square mile trade downtown and make the other town living. area. That extends out to Dear- buildings around it more valuable. The redevelopment and financ- born, Grosse Pointes, a little bit of It’s not just to say in this foot- ing plans are due to the DDA by the Downriver, probably St. Clair print what you capture; it will have end of the year and the financing Shores, all of those areas. a ripple effect on everything must be secured by March 1. Detroit is one of the most un- around the building. It’s hard to Groundbreaking is planned by der-retailed cities in the country. It quantify the impact on just that April 1 with construction largely only has 3 square feet of retail per alone. completed within three years of person; and the national average If you get a market rate of return that. is 21 square feet. The city is one of on your investment, that’s great. Crain’s reporter Kirk Pinho the most under-retailed in the Then in addition, you get the spoke with Robert Gibbs, a retail country, statistically. That’s the city Starbucks effect, which means that and urban planning expert who is entirely. within a quarter-mile, it raises the the managing principal of Bir- residential property values 12 per- mingham-based Gibbs Planning Do you foresee cost being a signi‰- cent. The same thing would be Group Inc., last cant factor in how this all plays out? happening if you could walk to a week about the Gibbs: I don’t see the retail market or store at the Hudson’s project and COURTESY ROCK VENTURES square footage as a cost. I see it as site. “I see it as a prot center,” urban planning expert said of the retail what could be in Robert Gibbs a profit center. Every square foot It’s a win-win because if you can square footage announced for development on the Hudson’s site. store for the they can develop is additional make a market return on your in- two-acre site profit; they are going to make vestment, then increase the values that has been stores in city centers, as well as picked over all the easy cities like money on every square foot that of your surrounding property, it’s a vacant since the Wal-Mart. Los Angeles, New York and Chica- they put in there, so I see that on double-whammy. This is an indus- department They could also get junior an- go, and I could see them coming the profit side of the spreadsheet, try standard, to get multiple wins store was im- chors – like T.J. Maxx, Saks Fih Ave- into a second-tier city like Detroit. not the expense, and I doubt they out of one investment.

Robert Gibbs: ploded 18 years nue O€ 5th, Nordstrom Rack, H&M, are going to be subsidizing the re- This is what Detroit has never Imagining what ago. Zara. There are a number of foreign How do changing economic demo- tailers. had before, but it’s common in Hudson’s site department stores coming into graphics around downtown a€ect the The retail generates more than Boston, Chicago, Seattle and Port- could hold. What kind of American cities now and they’ve site? enough income to cover its cost. land and elsewhere. challenges do you foresee with a site and plan like this? Gibbs: That kind of mixed-use density is very complicated, and it means they are going to be devel- oping in what’s known as a fast- track process, where they are fin- ishing construction drawings as they are still programming the building. It’s a 6- to 9-month mini- mum to do the architecture and engineering, and to bid it out is a 2- to 3-month process.

What’s the most logical mix of uses YOU FLY PRIVATE for the space? Gibbs: That figure, 225,000 BECAUSE YOU DON’T LIKE RULES. square feet, is too much to be all Why do you accept paying for taxi time, minimum flight retail, unless they brought in a ju- time, trip changes or cancellations, and adjust your nior department store or junior anchor (think power center an- schedule around blackout dates and restrictive service chor stores) that could go with a areas? With Corporate Eagle you won’t. two- or three-story footprint. That would be a great footprint for one of those because it’s at the ‘Main and Main’ corner of the downtown shopping district. It would be an ideal place for a junior department store or a junior anchor tenant in the 20,000 to 40,000 square foot range. The other mixed-use space would probably be some office, but that’s probably it — office and retail. It would be really nice for them to bring in a full-sized anchor, like a Target, for example. Urban Tar- gets are around 80,000 to 100,000 square feet in size, and their ex- pansion policy right now is to go into city centers. But that’s just speculating, and I don’t have any first-hand knowledge of the proj- corporateeagle.com | 248.461.9001 ect. But it generally does meet Tar- get’s criteria for deploying new 32 CRAIN’S DETROIT BUSINESS // MAY 9, 2016 growth in the sales of full-season considered a measure of the team’s Mannion praised the team’s rela- PISTONS tickets and partial game packages Palace headcount financial health — an up-and- tionship with FSD as “fantastic,” but FROM PAGE 1 that, when sales are combined, Here is the Detroit Pistons’ annual coming club will see an uptick in said it makes good business sense to create the equivalent of a full- per-game attendance average dating retail sales. investigate possible alternatives from 2003-09 (except for finishing season ticket sale. to their 2003-04 NBA championship, The team retains more than when it comes time to renew. Pis- second in 2006-07). The team has been adding with the team’s record and 80 percent of its corporate spon- tons broadcast ratings were up In one measure of renewed fan about 1,000 season tickets since attendance rank in the 30-team sors each season, Mannion said. 8.2 percent this season. interest in the Pistons, Mannion Tom Gores bought the club in league in parentheses: Mannion predicts more compa- Detroit also has seen significant said Detroit sold 30 percent more 2011 for $325 million. This season, nies will want to sign on or extend growth on its social media plat- 16,515 (44-38, 25th) tickets for its first-round playoffs the Pistons were at 6,500 season 2015-16: their sponsorship deals with the forms: The team’s Twitter account this year than it did for its last tickets sold, and Mannion expects 2014-15: 15,266 (32-50, 26th) Pistons for next season. grew from 58,000 followers in 2012 postseason berth, in 2009. Unfor- to hit 8,500 next season. 2013-14: 15,005 (29-53, 26th) “I see that as a major, major to well over 500,000 now, while its tunately for the Pistons, the 2009 “That’s a good, strong number,” growth area for us,” he said. number of Facebook followers has 2012-13: 14,782 (29-53, 28th) and 2016 first rounds had the he said. “We want to get to 10,000. Additionally, the team contin- grown to more than 1.7 million. same result: A sweep at the hands That assures you of a big gate.” 2011-12: 14,413 (25-41, 28th) ues to seek naming-rights spon- Mannion said the Pistons are of the LeBron James-led Cleveland More than 600 new full-season 2010-11: 16,660 (30-52, 18th) sors for its north and east pavil- ninth in the NBA in social media Cavaliers. season tickets have been sold for 2009-10: 18,751 (27-55, 8th) ions, its various arena clubs, its engagements per 1,000 followers. “It had been in so many years next season, Mannion said, and training center and even parking “You’ve got to be relevant before 2008-09: 21,877 (39-43, 1st) (in the playoffs), fans stopped go- the team’s renewal rate for current lots. you can build a relationship with ing to first round in 2009,” Man- season ticket holders is tracking at 2007-08: 22,076 (59-23, 1st) On the broadcast front, the Pis- your fans. Once you’re relevant, nion said. Losing to the Cavs in more than 90 percent. 2006-07: 22,076 (53-29, 2nd) tons are focused on linking TV you can grow revenue,” he said. 2009 ended a run of eight straight The first two of the three court- 2005-06: 22,076 (64-18, 1st) and digital sponsorships, which The improving on-court prod- seasons in the playoffs, and atten- side season ticket types — they sell Mannion said were done piece- uct means the Pistons will rely 22,076 (54-28, 1st) dance went from among the best for $50,000 — were sold out this sea- 2004-05: meal in the past. He also said he less on gimmicks to get people in the NBA to among the worst — son, and Mannion expects all the 2003-04: 21,290 (54-28, 1st) wants to accelerate broadcast into the seats. Fans will notice triggering the revenue hemor- on-court seats to sell out in 2016-17. Source: ESPN.com sales with categories such as auto what’s presented to them at rhaging that the team has slowly Also telling: Detroit was in the and health care. games will transition from enter- begun to stanch. top five in the league for group The team currently has a 10- tainment such as the dance teams This year, Detroit sold more ticket sales the past two seasons 44 percent over last season, Man- year broadcast-rights deal with to more of what’s happening on than 22,000 tickets for its two play- and expects to be in the top three nion said, but he declined to dis- Southfield-based Fox Sports Detroit the court, Mannion said. off games at the Palace. after the accounting is finished for close the revenue totals. Typically, that pays the Pistons about “We’re moving toward more of a Season tickets are the lifeblood 2015-16. The team had about 3,300 merchandise sales account for $25 million per season. Its expira- basketball-based presentation,” of an NBA team’s local revenue, group sales tickets sold per game. 5 percent or less of an NBA team’s tion date hasn’t been disclosed, he said, noting that statistics dis- and the Pistons report positive Merchandise sales were up total revenue, but such sales are but it’s believed to be around 2020. play boards were added for the playoffs. Gores has invested $40 million on improvements at the Palace over the past three years, and the upgrades include a bevy of new technologies such as better Wi-Fi and cellphone service, and digital applications that send targeted advertising, such as food deals, directly to fans’ mobile devices during games. The team is still learning how best to deploy such things, including in-seat orders and bathroom wait-line apps. A likely future option will be a “mobile wallet” that allows fans to pay for everything with a phone app. As for physical infrastructure, the Palace is in the middle of the $6 mil- lion, three-year replacement of all of its seats by 2018, and Mannion said the highest tier of suites between the foul lines will be refreshed during the offseason while manage- ment considers what to do with the third level of seating. The Pistons, who have seen Gores overhaul their business op- erations, were estimated by Forbes in January to be worth $850 mil- NDJG lion, a $40 million increase over 2015 and a $400 million improve- ment over 2014. The NBA’s most valuable franchise, according to Forbes, is the New York Knicks at $3 billion. The average value of an NBA team is $1.25 billion. 8DAD86I>DC Local sports industry insiders praise what the Pistons are doing, both off the court and with coach Stan Van Gundy and young players such as Andre Drummond. “They are on the right track, and did all the right things in the down years,” said Mike Dietz, president and director of Dietz Sports & Enter- tainment in Farmington Hills. “A better team with a great at- mosphere, they’re going to sell a lot more tickets. The casual fan definitely starts coming when they’re winning.” Bill Shea: (313) 446-1626 Twitter: @Bill_Shea19 CRAIN’S DETROIT BUSINESS // MAY 9, 2016 33 STUDIO 1980s and 1990s. studio, MDOT’s Morosi told FROM PAGE 1 Singer recorded Home of hits Crain’s. “Come to Me” at United in 1959, Here is a sampling of albums and And, in May 2015, Chynita www.crainsdetroit.com potentially preserve the recording the first single released by Gordy Richards and Scott testified in songs recorded at United Sound Editor-in-Chief Keith E. Crain studio. But if the feds win, the Jus- before he opened Motown’s head- Systems Recording Studios: front of a City Council committee Group Publisher Mary Kramer, (313) 446-0399 tice Department could simply sell quarters, Hitsville U.S.A., less regarding the historic district des- or [email protected] John Lee Hooker, “Boogie Chillun” Editor Jennette Smith, (313) 446-1622 the land, or give it to the state. than two miles away. ignation. or [email protected] “If that place comes down, it By 2009, the studio had fallen Marvin Gaye, “What’s Going On” “We really didn’t know what we Director, Digital Strategy, Audience Development will cut the heart out of the De- into disrepair and foreclosure. were getting into by reopening Nancy Hanus, (313) 446-1621 or [email protected] Bob Seger, “Ramblin’ Gamblin’ Man” Managing Editor Michael Lee, (313) 446-1630 troit music business,” said Royal United Sound Systems recording The MC5, “Back In The U.S.A.” or [email protected] Oak businessman Ed Wolfrum, Family ties studios,” Chynita Richards told Managing Editor/Custom and Special Projects the studio’s chief engineer from The federal drug case, mean- Isaac Hayes, “Shaª” City Council members. “United Daniel Duggan, (313) 446-0414 or [email protected] Assistant Managing Editor Kristin Bull, the late 1960s through early 1970s. while, dates to November 2012 The Red Hot Chili Peppers, “Freaky Sound is such a gem in Detroit (313) 446-1608 or [email protected] Federal prosecutors are not us- when alleged drug dealer Rich- because we have so many hits News Editor Beth Reeber Valone, (313) 446-5875 Styley” or [email protected] ing drug allegations as a ploy to ards was charged in federal court that were recorded there.” Senior Editor Gary Piatek, (313) 446-0357 seize the property for the I-94 with conspiring to distribute co- Rolling Stones/Aretha Franklin, Wolfrum, the studio’s former or [email protected] widening project, said Gina Ba- caine. Richards, however, disap- “Jumpin’ Jack Flash” chief engineer, visited the studio Research and Data Editor Sonya Hill, (313) 446-0402 or [email protected] laya, a spokeswoman for the U.S. peared, triggering a years-long Aretha Franklin & The Eurythmics, and said the new owners ripped Editorial Support (313) 446-0419; YahNica Crawford, Attorney’s Office in Detroit. manhunt. “Sisters Are Doin’ it For Themselves” out, in some cases, pioneering, (313) 446-0329 Newsroom (313) 446-0329, FAX (313) 446-1687, Michigan De- U.S. Drug Enforcement Administra- Source: United Sound Systems innovative equipment that TIP LINE (313) 446-6766 partment of tion agents soon learned Richards helped create United’s sound. REPORTERS Transportation was the cousin of a second fugi- “It’s sort of wrecked now,” Wol- Jay Greene, senior reporter Covers health care, officials ac- tive accused of distributing drugs luxury cars in 2011, investigators frum said. insurance, energy, utilities and the environment. knowledge the in Detroit, a California man analyzed Laidler’s bank records (313) 446-0325 or [email protected] In the shadows Chad Halcom Covers litigation, the defense industry United record- named Mark Jones. and discovered more than and education. (313) 446-6796 or [email protected] ing studio, Jones had been shipping co- $253,000 in cash deposited in The historic designation won’t Tom Henderson Covers banking, ›nance, technology and biotechnology. (313) 446-0337 or preservation caine from California to Richards Michigan, court records allege. necessarily save the studio from [email protected] efforts and in metro Detroit since 2000, ac- In January 2011, Laidler bought being demolished for the I-94 Kirk Pinho Covers real estate, Oakland and Macomb Midtown's re- cording to court records. Jones cashier’s checks totaling $42,700 project, said Peter Henning, a counties. (313) 446-0412 or [email protected] Bill Shea, enterprise editor Covers media, surgence have Dwayne also disappeared that same year, payable to Fine Touch Dermatology Wayne State University law profes- advertising and marketing, the business of sports, and complicated Richards: Trial set but the drug investigation inten- in Redondo Beach, Calif., accord- sor and former federal prosecu- transportation. (313) 446-1626 or [email protected] for June 7 in federal Robert Snell, reporter Covers city of Detroit and and delayed sified in April 2011 when Indiana ing to court records. The checks tor. regional politics. (313) 446-1654 or [email protected] the widening court in Ann Arbor. State Police troopers pulled over a included the notation “Shawn “If the federal government Lindsay VanHulle, Lansing reporter. (517) 657-2204 project. car hauler. Inside, investigators Burman” — an alias for Jones, the wins, they can do whatever they or [email protected] Dustin Walsh, senior reporter Covers the business of “We just don’t know if we need found 40 kilograms of cocaine Califorinia fugitive who had been want with the property,” Henning law, auto suppliers, manufacturing and steel. the property or not,” MDOT hidden inside a 2007 Mer- missing for 11 years, according to said. “That said, I think (U.S. At- (313) 446-6042 or [email protected] spokesman Rob Morosi said. “We cedes-Benz and a 2006 Rolls- Assistant U.S. Attorney Julie Beck. torney) Barbara McQuade is very Sherri Welch, senior reporter Covers nonpro›ts, services, retail and hospitality. (313) 446-1694 or never made an offer, primarily Royce Phantom bound for a De- The services purchased were hair cognizant of the interests of the [email protected] because we’re still refining the de- troit-area customer. and eyebrow transplant work, city, and I doubt she would want ADVERTISING sign to minimize the impact in Something was missing, how- Beck wrote in a court filing. “These to wade into a fight by doing Sales Inquiries (313) 446-6032; FAX (313) 393-0997 Midtown.” ever. The car hauler was built for records included photographs something that would get the city Advertising Director Matthew Langan Senior Account Manager Katie Sullivan United Sound Systems is a three. which confirmed that the patient of Detroit mad.” Advertising Sales Gerry Golinske, Catherine Grace, two-story red brick home with a Inside the car hauler, investiga- Shawn Burman was in fact Mark When City Council approved Joe Miller, Diane Owen, Sarah Stachowicz, ClassiŠed Sales Manager Angela Schutte, large rear studio addition at the tors found paperwork for the miss- Jones.” the historic designation, a federal (313) 446-6051 corner of Antoinette Street and ing car, a 2003 BMW 745i registered After the surgery, Jones would investigation involving the studio ClassiŠed Sales Lynn Calcaterra, (313) 446-6086 Second Avenue, north of I-94 in to Jones, the fugitive alleged drug stay missing for four more years site continued in the shadows. Events Manager Kacey Anderson Creative Services Director Pierrette Templeton Midtown. The studio was estab- dealer, prosecutors allege. until federal agents caught him After analyzing Scott’s bank ac- Senior Art Director Sylvia Kolaski lished in 1933 and evolved from a The Rolls-Royce and Mer- near Los Angeles last fall. Jones, counts and flagging more than Marketing Coordinator Ariel Black venue that produced advertising cedes-Benz were sold through 51, is awaiting trial in a separate $33,000 worth of cash deposits Special Projects Coordinator Keenan Covington Sales Support Suzanne Janik, YahNica Crawford jingles into a musical factory that luxury car broker Marc Laidler of drug case in Mississippi. and checks, federal agents and Editorial Assistant Nancy Powers hosted jazz greats, blues musi- Los Angeles, court records show. Meanwhile, cooperating wit- the U.S. Attorney’s Office reached Production Manager Wendy Kobylarz cians and rock stars through the After finding drugs inside the nesses told agents that Richards a conclusion. Production Supervisor Andrew Spanos CUSTOMER SERVICE was involved with or owned a “It appears that Dwayne Rich- Main Number: Call (877) 824-9374 music studio in Detroit, court re- ards, a known cocaine trafficker, or [email protected] INDEX TO COMPANIES cords allege. The studio: United used Danielle D. Scott to try to Subscriptions $59 one year, $98 two years. Out of These companies have signicant mention in this week’s Crain’s Detroit Business: state, $79 one year, $138 for two years. Outside U.S.A., Sound Systems. conceal the movement of money add $48 per year to out-of-state rate for surface mail. 826michigan ...... 3 JVS ...... 19 One witness said Richards’ and property that are the pro- Call (313) 446-0450 or (877) 824-9374. Single Copies (877) 824-9374 American Red Cross of Southeastern Michigan .19 Leelanau Cošee Roasting ...... 9, 12 money was used to buy the stu- ceeds of his drug trafficking activ- Reprints (212) 210-0750; or Krista Bora at Autoliv ...... 14 Leelanau Vacation Rentals ...... 10 dio, prosecutors alleged. ities by purchasing” the studio, [email protected] Belfor Holdings ...... 14 Kelly Services ...... 14 Property records show Rich- the prosecutor wrote. To Šnd a date a story was published (313) 446-0406 or e-mail [email protected] Brain Injury Association of Michigan ...... 19 Key Safety Services ...... 14 ards’ cousin Danielle Scott, a Scott has not been charged Crain’s Detroit Business is published by Butzel Long...... 4 KLA Laboratories ...... 21 43-year-old Redford Township with a crime. She did not respond Crain Communications Inc. Cherry Republic ...... 11 Michigan Department of Transportation ...... 33 resident who worked for the U.S. to a message seeking comment. Chairman Keith E. Crain President Rance Crain Civilla ...... 8 Michigan Small Business Development Center ..19 , bought the fore- The federal investigation Postal Service Treasurer Mary Kay Crain Cooper-Standard Automotive...... 14 Michigan Veterans Ašairs Agency ...... 19 closed studio property for $20,000 reached a breakthrough in Janu- Executive Vice President/Operations Cooper-Standard Holdings...... 15 Michigan Veterans Foundation ...... 19 in May 2009. ary when Dwayne Richards, the William A. Morrow Executive Vice President/Director of Strategic Crystal River OutŠtters ...... 9 Miller, CanŠeld, Paddock and Stone ...... 4 Another witness said Richards’ alleged drug dealer and fugitive, Operations Chris Crain Dayco Products ...... 14 MPG ...... 14 wife Chynita, 39, oversaw day-to- was finally located and arrested in Executive Vice President/Director of Corporate Delphi Automotive ...... 29 Napier Industries LLC ...... 19 day operations, booked artist re- metro Detroit. Operations KC Crain Vice President/Production & Manufacturing Detroit Pistons ...... 1 National Veteran Business Development Council ...15 cordings at United “and that drug He is being held without bond Dave Kamis Domino’s Pizza ...... 14 Penske Automotive Group ...... 14 transactions have taken place in and set for trial June 7 in federal Chief Financial O”cer Thomas Stevens Chief Information O”cer Anthony DiPonio Dow Chemical ...... 14 Pure Michigan Talent Connect ...... 19 the building.” court in Ann Arbor. If convicted, G.D. Crain Jr. Founder (1885-1973) Dow Corning ...... 14 Salvation Army Eastern Michigan Division .....19 Music wasn’t the only other Richards faces up to life in prison. Mrs. G.D. Crain Jr. Chairman (1911-1996) DTE Energy ...... 17 Scavolini ...... 23 business venture for Dwayne Rich- There is a strange continuity in Editorial & Business O”ces 1155 Gratiot Ave., Detroit MI 48207-2732; Eastern Market Corp...... 3 SME ...... 29 ards, prosecutors alleged. He was the studio’s history if the govern- (313) 446-6000 Emmanuel House Recovery Program ...... 19 Southwest Housing Solutions ...... 19 among the investors of the 2012 ment’s drug allegations are true, Cable address: TWX 248-221-5122 AUTNEW DET FCA US LLC ...... 14 Strategic Sta”ng Solutions ...... 17 movie comedy “House Arrest.” said Wolfrum, the former United CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly, except for a special issue the third Federal-Mogul ...... 14 Team Detroit ...... 7 Two years after the film was re- Sound Systems chief engineer. week of November, and no issue the third week of Ford Motor...... 14 TechShop Detroit ...... 19 leased, United Sound Systems re- “My gosh, if you look at the his- December by Crain Communications Inc. at 1155 Friends of Sleeping Bear Dunes ...... 9 TI Automotive ...... 14 opened in 2014. One witness tory of that place, there were al- Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and additional mailing General Motors ...... 14 United Sound Systems Recording Studios ...... 1 spotted Dwayne Richards inside, ways nefarious characters,” he o§ces. POSTMASTER: Send address changes to Gibbs Planning Group ...... 3 United Way for Southeastern Michigan ...... 19 renovating the studio, prosecu- said. “I worked with (singer) CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # Grand Traverse Resort and Spa ...... 10 University of Detroit Mercy Law School ...... 19 tors said. George Clinton there. Hell, there 136760444. Printed in U.S.A. GTB ...... 7 Veteran’s Haven ...... 19 In 2015, MDOT officials met isn’t anything he didn’t put in his Entire contents copyright 2015 by Crain Handstand Innovations LLC ...... 13 Volunteers of America-Michigan ...... 19 with Scott to talk about the I-94 body.” Communications Inc. All rights reserved. Reproduction or use of editorial content in any manner without The Homestead Resort ...... 10 W4 Construction Group ...... 18 widening project and the process Robert Snell: (313) 446-1654 permission is strictly prohibited. Inforum Center for Leadership ...... 19 Wins for Warriors Foundation ...... 19 for possibly buying or moving the Twitter: @robertsnellnews 34 CRAIN’S DETROIT BUSINESS // MAY 9, 2016 ON THE WEB APRIL 30-MAY 6 RUMBLINGS WEEK Surf’s up at local tap rooms Detroit Digits Wings — family Outdoor ed center owned in the A numbers-focused look at last future under takes shape on week’s headlines: son Chris Ilitch. as debut of new brew nears , 86, etroit Surf Co., maker of an Excellence in the U.S., a symposium Detroit’s east side and Marian Ilitch, eponymous lifestyle to promote business between U.S. our vacant lots in the $500 million 83, are founders apparel and sports and Italian companies. Osborn neighborhood of of the Little Dequipment brand, and Dexter- The event, organized by The amount approved by the Detroit soon will have new Michigan House to restructure Caesars pizza based Jolly Pumpkin Artisan Ales are Southfield-based nonprofit Flife as an outdoor environmental chain and have cooperating on a draft Leonardo International Inc. and The Detroit Public Schools. The plan Chris Ilitch education center. The Greening of came just aer teachers staged a significant microbrewed beer intended for Consulate of Italy in Detroit, will take Detroit and the Osborn Neighborhood two-day sickout because they business rollout this summer. place from 10 a.m. to 4 p.m. Alliance are leading the project on feared the nancially strapped interests in Detroit, including the “The first 10-barrel test batch is Tuesday at the McGregor Memorial the city’s east side, with American district wouldn’t be able to pay $627.5 million Red Wings arena in production and should be done Conference Center at WSU. Forests and the Bank of America them through the summer. The set to open in 2017. over the next The agenda includes seminars funding it. Osborn residents, House measure did not include a n Detroit Recreation Department couple of weeks. on autonomous vehicles, robotics neighborhood children, plan to create a commission with Director Alicia Bradford was set to The final and advanced medical volunteers from Bank of America the authority to approve which retire after a nearly 30-year career version should technologies from companies like and American Forests, along with schools open and close in the city and two months after the botched be done for Brembo North America Inc., Fiat The Greening’s staff, installed a — a key part of an alternative plan awarding of a contract to manage release Chrysler Automobiles NV, Comau LLC, natural ecosystem last week. already passed in the Senate. the city’s four golf courses. midsummer,” Comerica Bank and St. Joseph Mercy Participants will learn about n Driven by a sharp boost in said Detroit Surf Health System, among others. the vegetative materials planted, local employment, the Southeast Co. founder Seven companies from Italy are the habitats being created and Michigan Purchasing Managers Dave Tuzinowski. expected to attend the event. benefits of the installation. The 32 ounces Index rose 3.6 points in April, Dave Tuzinowski A summer The conference will also site will become a nationally The size of to-go cans Hazel with the three-month average tap release include an expo, career fair and certified pollinator and natural Park-based hand-craed cider and rising from 56.1 to 57.9. The party is in the works at the Italian art exhibit. habitat space. beer maker Cellarmen’s will oer to employment component of the Midtown Jolly Pumpkin location Sponsors include FCA, Comau, customers. Cellarmen’s said it will be index was up by 9.4 points, from (and next year in Hawaii, where Brembo, Esaote North America, COMPANY NEWS among the rst in the country to 57.3 to 66.7. The index is a Detroit Surf Co. was born a Magnetti Marelli, Butzel Long PC, n Chicago-based AJ Capital oer mead and cider in large-format research partnership between decade ago), and proceeds will Comerica Bank, Dawda, Mann, Partners opened the Graduate Ann cans. Wayne State University’s Mike Ilitch benefit a charity to be Mulcahy & Sadler PLC and WSU. Arbor hotel. The 204-room, School of Business and the Institute determined, he said. The event is open to the public, 14-story hotel — the largest in for Supply Management -Southeast The new brew is a red IPA, he which can register on site. See downtown Ann Arbor — occupies hospice services provider last Michigan. said, and will be available at www.leonardointernational.org. what used to be The Dahlmann month and relocated it. Terms of n Last year, Detroit’s three Mercury Burger Bar, Jolly Pumpkin Campus Inn, which closed last the deal were not disclosed. casinos — Greektown Casino-Hotel, locations and Rust Belt Market’s Speaker may have to testify December. AJ Capital Partners n Auburn Hills-based Unique MGM Grand Detroit and MotorCity forthcoming bar in Ferndale. Rust acquired the Dahlmann from Ann Fabricating Inc. announced the Casino Hotel — contributed Belt has been Detroit Surf Co.’s in Courser-Gamrat case Arbor developer Dennis acquisition of Canadian automotive $174.3 million, or 16 percent of retail location; a second was added Michigan House Speaker Kevin Dahlmann for $51 million. adhesive supplier Intasco Corp. for the city’s total revenue, officials Wednesday when a pop-up shop Cotter could appear in a Lansing n On the Move Inc., a Boerne, nearly $21.8 million. from the American Gaming opened at 4215 Cass Ave. in Detroit. district court as early as this week, Texas-based company that builds n A Kmart store in Farmington Association said. The AGA was in Jolly Pumpkin is bearing the if he and other legislative food trucks and manages truck- Hills is slated to close this Detroit as part of a tour of casino costs for the test batch, and if the attorneys can’t persuade a county lease programs, has purchased summer. The Orchard Lake Road cities days before a federal 50-barrel production batch takes court to quash his subpoena in Oak Park-based Detroit Custom store near Northwestern Highway legislative hearing to consider the off, the two companies will sort criminal proceedings against Coach LLC, a maker of custom- and West 14 Mile Road began a legal status of sports betting and out percentages, licensing and former state Reps. Todd Courser designed food trucks. Terms were liquidation sale April 21, Sears related topics. the usual business relationship and Cindy Gamrat. not disclosed; Detroit Custom Holdings Corp. previously n The $6.9 million, details, Tuzinowski said. Attorneys for Cotter at Dykema Coach will remain in Oak Park. announced the closing of a Super 19,000-square-foot Penske Gossett PLLC and for the Michigan n DTE Energy Co. and Royal Oak K store in Taylor. Technical Center, designed to serve Ride share rm may get Senate at Warner Norcross & Judd tech company Vectorform have n Three Detroit health centers as the maintenance, storage and LLP both asked Ingham County introduced a virtual reality — The Wellness Plan, Covenant operations nexus for M-1 Rail’s $100K from AOL founder Circuit Judge James Jamo to strike simulation that will change the way Community Care Inc. and Detroit under-construction QLine Anya Babbitt, the founder of down a defense subpoena for the Detroit-based utility trains its Health Care for the Homeless — will streetcar system in Detroit, Detroit-based SPLT, a ride-sharing Cotter last week. Cotter is field employees. The HTC Vive get $1 million each in federal opened at the northern terminus platform for companies’ appealing an April 22 order from system, developed by HTC Corp., funds for facilities improvements, of the line at Woodward Avenue employees, got a challenge last 54A District Judge Hugh Clarke that uses goggles and controllers to turn the U.S. Department of Health and and West Grand Boulevard. Wednesday from AOL founder he appear and answer questions any room into a 360-degree, Human Services announced. n The 2016 Quick Lane Bowl at Steve Case, at the national Google from defense attorneys in the interactive virtual environment n U.S. auto safety regulators Detroit’s Ford Field is getting a Demo Day in Mountain View, judge’s chambers. with motion tracking. ordered a major expansion of the new kickoff time and going back Calif.: If she can raise $1 million in Courser faces charges of perjury n St. John River District Hospital Takata airbag inflator recalls, more to its former broadcast home: The capital in the next 100 days, he and misconduct in office and in St. Clair is back in compliance than doubling the number of college football game matching told her he’ll invest $100,000 in Gamrat of official misconduct from with Medicare standards and a hazardous parts covered by the teams from the Big Ten and her company. state Attorney General Bill decision to terminate the callbacks, Automotive News Atlantic Coast conferences will be SPLT was in the first class of the Schuette’s office, related to an hospital’s participation in reported. The National Highway played at 2:30 p.m. Dec. 26 on Tech Stars mobility accelerator at alleged coverup of their Medicare has been rescinded, TraŠc Safety Administration said an ESPN. Last year’s game began at 5 Ford Field last summer. The extramarital affair, either by officials for parent St. John additional 35 million to 40 million p.m. and aired on ESPN2. The first company won the Detroit-area misusing public staff resources or Providence Health System were told. Takata-made inflators must be Quick Lane Bowl, played in 2014, Google Demo Day at Grand Circus lying to investigators. Courser The U.S. Department of Health and replaced, on top of nearly kicked off at 4:30 p.m. on ESPN. in March, which got Babbitt a trip resigned and Gamrat was expelled. Human Services’ Centers for 29 million already covered by the n Anne Elizabeth Moore, a writer, to Silicon Valley to make a pitch At issue for Cotter, and the Medicare and Medicaid Services had largest recall in U.S. history. editor, artist and cultural critic from with 10 other startups for capital Senate as an outside party, is part of notified St. John Providence last Tokyo-based Takata’s North Chicago, is expected to receive a to some of the most influential the state Constitution that states a month of the termination, the American subsidiary, TK Holdings house on Detroit’s east side as the venture capitalists in the world. All legislator “shall not be subject to a result of a patient’s suicide in Inc., is based in Auburn Hills. third recipient in a program that of them got the same challenge subpoena for any matter involving January, with the hospital being awards homes to new writers-in- from Case. statements made...pursuant to his cited for failing to follow required OTHER NEWS residence. Write A House is part of or her duty as a legislator.” procedures. n Detroit’s Ilitch family issued the Detroit Land Bank Authority’s Wayne State event to John Bursch, an attorney for the n Advanced Professional Hospice a succession-planning statement Community Partners program. A promote U.S.-Italian biz Senate, said he was unaware of Care is now based in Royal Oak as confirming that their intent is to fourth house was awarded to any case where a legislator was Custom Hospice LLC, after Custom keep their businesses — including Detroit poet Nandi Comer, with Wayne State University will host compelled to give deposition Home Health Inc. acquired the Troy the Detroit Tigers and Detroit Red move-in expected this fall. the first Italian Technological testimony. Stay tuned. DBpageAD_DBpageAD.qxd 5/3/2016 3:20 PM Page 1 DBpageAD_DBpageAD.qxd 5/3/2016 10:19 AM Page 1

04-11-16 | 9:07 AM | GMRENCEN, FLAG DISPLAY

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