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Beyond Politics 20081027-NEWS--0001-NAT-CCI-CD_-- 10/24/2008 6:44 PM Page 1 ® www.crainsdetroit.com Vol. 24, No. 43 OCTOBER 27 – NOVEMBER 2, 2008 $2 a copy; $59 a year ©Entire contents copyright 2008 by Crain Communications Inc. All rights reserved THIS JUST IN Beyond Plante & Moran elects Wal-Mart rings up new managing partner Southfield-based Plante & Moran P.L.L.C. is expected politics to announce today that Gor- don Krater has been selected to replace William Hermann Business wants as the firm’s managing partner, effective July 1. area market share Krater, 50, was elected fundamental change last week at the annual meeting Region targeted for grocery expansion of the from whoever wins firm’s BY NANCY KAFFER 225 part- BY AMY LANE CRAIN’S DETROIT BUSINESS ners. CAPITOL CORRESPONDENT “I’m The game is on, and Wal-Mart Inc. is play- thrilled. LANSING — No matter which De- ing to win. Excited. mocrats or Republicans win office The Bentonville, Ark.-based retailer’s Hon- Nov. 4, they’ll still face a state strug- aggressive grocery expansion plans have ored,” gling with job losses and budget con- paid off. cerns, and a business community In the last year, Wal-Mart has added six Krater Krater told charged up about reducing the bite of new groceries to its metro area lineup by Crain’s. He joined the firm the new Michigan Business Tax. opening new stores or expanding existing in 1980, made partner in That means business as usual isn’t stores to include grocery departments. 1991 and has been group good enough anymore, for Michigan’s The discount giant has quadrupled its COURTESY OF WAL-MART managing partner in employers or its economy. share of the metro area’s grocery market, charge of industry special- “Our elected leaders at every level capturing 11.8 percent of the area’s market WAL-MART’S SHOPPING CART izations for seven years. have to understand that business is share in October this year, compared to 2.6 Hermann, 57, who joined important to the future of our state. percent in July 2007, according to the Octo- Wal-Mart is gaining market share as it aggressively expands its grocery business. It has quadrupled its share of the Plante & Moran in 1971 and And they re- ber issue of Progressive Grocer magazine, a Detroit area’s grocery market since last July, and it plans to became a partner in 1981, ally need to trade publication that covers the grocery industry. open another eight stores with grocery departments in the has served two four-year do everything Detroit area next year. terms as managing partner. they can to And Wal-Mart isn’t done yet. He said he hopes to remain improve our Another 11 stores — eight in the Detroit with the firm for three or business cli- area — are scheduled to open or add a gro- cery section next year, said Nick Infante, a 2.6% 11.8% four more years and is ex- mate, without Wal-Mart grocery sales Wal-Mart grocery sales regard to par- Lansing-based senior manager of public pected to be named before MORE ELECTION in July 2007. in October 2008. year’s end as the managing tisan poli- Proposals 1, 2: The tics,” said See Wal-Mart, Page 42 partner of one of the firm’s arguments for and business units. against. Pages 38, 39. Sarah Hub- Plante & Moran is the Oakland County: Race bard, vice nation’s 11th-largest public for county executive. president of accounting and advisory Page 40. government firm, with offices in Michi- relations at gan, Illinois, Ohio, Ten- the Detroit Re- nessee, Shanghai and Mon- gional Chamber. Merger could empty buildings terrey, Mexico. It has As Crain’s reported last week, 95 about 1,650 employees, up percent of Crain’s subscribers polled about 100 from a year ago. in a new survey said they were some- Detroit, Auburn Hills Under Hermann, the firm what or very dissatisfied with Michi- opened its overseas and gan’s economy, and 57 percent said Tennessee offices and ac- they expect the state economy to get fear real estate vacuum quired one CPA firm in worse. Flint and two in Chicago. So what does business look for out BY DANIEL DUGGAN Group. The company likely will of races like the state House, where CRAIN’S DETROIT BUSINESS There are few answers to decide whether to open an Democrats are expected to widen what will happen with a con- office in Mumbai, India, their hold on the chamber? It’s an unlikely solidation or merger within the next few months. Lawmakers need to rise beyond en- scenario. THE IMPACT involving Chrysler, More expansion plans like- trenched party positions, Hubbard But if Chrysler General Motors Corp. Suppliers: Some ly will call for growing a said. L.L.C. were to give up and possibly Nissan- all of its space in its see devastation. southern footprint and ex- “We’re way beyond partisan poli- Page 43. Renault. But one an- Auburn Hills head- panding in the Midwest. tics, right now with this economy. Ad agencies: swer, however, is “We can be every bit as And people who turn it into that kind quarters building, Uncertainty fills clear: any consolida- dominant in Chicago and of discussion aren’t helping things,” the city’s office va- air. Page 44. tion would cause Ohio as we are here,” he she said. “The problems we’re facing cancy rate would go great harm to the in the state are so dire, the solutions from 3 percent to 62 area’s real estate said. If GM were to move into the Chrysler — Tom Henderson have to go far beyond political par- percent, according to a market. headquarters in Auburn Hills, Detroit’s Crain’s analysis of data from office vacancy rate would increase from “It would be a disaster for See This Just In, Page 2 Bethesda, MD-based CoStar See Election, Page 41 30.5 percent to 46.5 percent. See Merger, Page 44 Some insurance agencies C negotiate the tightrope to National City deal called NEWSPAPER growth, Page 27 good for Michigan, Page 3 20081027-NEWS--0002-NAT-CCI-CD_-- 10/24/2008 5:53 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS October 27, 2008 The university’s board of re- Herbert Tyner is president of nomic Development Corp., the Clark named marketing THIS JUST IN gents last week approved spend- Hartman & Tyner Inc., a South- state Department of Labor and Eco- ing another $231 million to add field-based developer. nomic Growth, the Michigan Works! manager at Crain’s ■ From Page 1 84 private patient beds, two mag- — Jay Greene Association and other agencies. Irma Clark has been named netic resonance imaging units, “It’s an attempt to get started Alda, Goodman to star in film an operating room and an inter- now, and try to do something marketing manager for operative magnetic resonance Wunderlich signs lease for proactive and see if we can help Crain’s Detroit Business. produced in metro Detroit imaging operating room suite. Birmingham office space with anything,” Patterson said. Before joining Crain’s, Clark, 42, worked for several A fantasy-horror film de- The 1.1-million-square-foot The group agreed to form Marking its entry to Michigan, leading marketing companies scribed as a high-end indepen- hospital will open in fall 2012. committees on issues like talent Memphis-based Wunderlich Securi- in their lo- dent production starring Alan The operating room MRI will retention and workforce devel- ties Inc. has signed a lease for of- cal offices, Alda and John Goodman is sched- allow neurosurgeons to see the opment, and stabilization in lo- images from an MRI scan while fice space in Birmingham. cal communities. At least one including uled to begin filming next spring The investment firm has of- they are operating. committee assignment has been Digitas, in metro Detroit. fices in five states. Wunderlich — Jay Greene offered to Richard Blouse, presi- Mullen and Birmingham-based Michi- leased 8,100 square feet of space gan/Hollywood Production Services dent and CEO of the Detroit Re- Carlson at 260 E. Brown St. gional Chamber, Patterson said. Inc., owned by Bob Krausmann, is Unival, Microsoft sign deal CEO Gary Wunderlich said “the Marketing the executive producer of “The The state is expected to take the Group on Unival Inc., an Ann Arbor- financial turmoil going on right lead in future strategy sessions. Whispers.” now provides a lot of opportuni- projects Krausmann declined to say based information-technology Other economic development ranging ties for a firm like ours.” teams, educational institutions how much the film will cost, but and health care services compa- from Web ny, has signed a contract to pro- The landlord is an ownership and defense industry agencies Clark said it’s been approved for Michi- marketing vide services to Microsoft’s on- group led by the principals of also are invited to take part. gan’s 42 percent movie rebate. to specific marketing projects line personal health record Broder & Sachse Real Estate Ser- — Chad Halcom Preproduction and location aimed at women and minori- system called HealthVault. vices Inc. CB Richard Ellis was the scouting begin Nov. 13, and film- ties. Microsoft is developing the broker. ing is expected to begin in ORRECTIONS In her new role, Clark will March for a 2009 release. Stage system to allow people to collect, — Daniel Duggan C manage marketing and sales filming will be done in Livonia. store and share information on- Ⅲ A story on the front page of promotion for Crain’s print The film will be directed by line.
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