Ahem 'Big Data,' Big Deal

20130916-NEWS--0001-NAT-CCI-CD_-- 9/13/20136:07PMPage1 ©Entire contentscopyright2013byCrainCommunicationsInc.Allrightsreserved new businessdevelopment. report asatoolincourting the countyplanstouse Oakland University and executiveinresidenceat Macomb Countyexecutive and a2.84infuturesentiment. current communitysentiment portation, whichwas2.75in sentiment forpublictrans- nity ratingwastheaverage ty andoverallqualityoflife. hind onlyschools,publicsafe- best assetinthecounty,be- business communityasthe spondents rankedtheretail is consideredpositive. and anaverageratingabove3 life measuresona1-to-5scale, residents torate10quality-of- port lastyear. rating intheinauguralre- pared witha3.71sentiment tunities” inMacomb,com- the qualityof“retailoppor- sentiment ratingof3.68to gave anaveragecommunity and EconomicDevelopment and the countyexecutiveoffice mate Survey,compiledby transportation. cerns aboutaccesstopublic ings inthecountybutcon- satisfaction withretailoffer- ty residentspointstohigh Opportunity, risk,Page4 Wayne propertytaxauction: for buildingsisbuilding Pending dealsshowdemand hosts Detroit’s Ch.9case ‘Million dollarcourtroom’ optimistic aboutretail Survey: Macombresidents

NEWSPAPER www.crainsdetroit.com Vol.29,No.38 Inside This JustIn Page 3 Al Lorenzo,anassistant The onlynegativecommu- About 9.9percentofallre- The summersurveyasks The 2013CommunityCli- A surveyofMacombCoun- Department ofPlanning — ChadHalcom , hassaid , ARA HOWRANI times pershift. production flowdataupto30 S interiors businessand,thecom- more than$1billiontoFaurecia’s more important. — andispoisedtobecomeeven tive companiesinNorthAmerica become oneofthelargestautomo- side Salineayearago,has wanted interiorsplantjustout- ter acquiring floor spaceormachines. capacity withoutaddingphysical new waystomanageincreased streamline productionandfind late lastyearinanattemptto at itsreorganizedworkstations stalled datacollectionterminals Faurecia’s goal:Heavyweightoflightweightparts Suppliers digdeepfor nuggets ofefficiency DavidLawrenceshowsadatacollectionsetupbeingtestedtospeedupentryandcollectmoreforanalysis. AlphaUSA CEO big deal ‘Big data,’ big deal ‘Big data,’ Acquiring thefactoryadded French supplier The family-ownedsupplierin- B CRAIN’S DETROITBUSINESS CRAIN’S DETROITBUSINESS Y B L Y plier private fastenersup- tors atLivonia-based tamping pressopera- INDSAY D USTIN AlphaUSA Ford MotorCo C W Faurecia SA HAPPELL ALSH enter .’s un- , af- SEPTEMBER 16–22,2013 parts forAmericanvehiclesfrom stream ofEuropean-branded center forFaureciatointroducea America, isslatedtobecomea and truckFordmakesinNorth door panelsforalmosteverycar strument panels,consolesand Hills. can headquartersisinAuburn ca. Thesupplier’sNorthAmeri- teriors supplierinNorthAmeri- pany says,madeitthelargestin- ing causeofstoppage,frequency ing layersofinformation,includ- tracking, monitoringandanalyz- large orcomplexsetsofdata. ing, storingandmanipulating the conceptofmanaging,analyz- three years. launch schedulesoverthenext meet theindustry’saggressive streamline developmentand improve productplanning, collect andanalyze“bigdata”to supply baseisfindingwaysto launches in2014.Inresponse,the new andremodeledvehicle tive industryispreparingfor32 The factory,whichsuppliesin- But that’sjustthebeginning. AlphaUSA’s bigdatainvolves Big dataislooselydefinedas The NorthAmericanautomo- SEPT. 26

| 11 a.m.- 4 p.m., CoboCenter lations. Theproblem:Thereislit- manding newfueleconomyregu- them cutvehiclemasstomeetde- carbon fibercompositestohelp fordable sourceofthelightweight the autoindustry. fiber parts,thenewholygrailof products: massproducedcarbon Chrysler GroupLLC. Ford, Lawrence said. ciency onitsshopfloor, than a35percentincreaseineffi- AlphaUSA isachievingmore ing thedatacollectionprocess, more capacitywehave.” officer. phaUSA’s chiefadministrative necks,” saidDavidLawrence,Al- greatest causetotimebottle- tion ordepartment,thatisthe find areas,whetherinaworksta- running simultaneously. and duration,onmultiplepresses Automakers havesoughtanaf- Chief amongthoseplanned Less thanayearafterlaunch- “The moretimewesave,the “The datahasallowedusto General MotorsCo. See Faurecia,Page22 TITLE SPONSORS See Data,Page23 | LARRY PEPLIN Learn moreatwww.crainsdetroit.com/soundbizLearn and of exchangesandopenenrollment. percent ofyoungadultsareaware Commonwealth Fund surance expansion,apollbythe educational outreachonhealthin- cles, publicservicemessagesand April 1. aid eligibilitywillbeexpanded surance exchangeandthatMedic- gins Oct.1fortheonlinehealthin- unaware thatopenenrollmentbe- 1.2 millionuninsuredpopulationis whelming majorityofMichigan’s diences. lenges inreachingtheirtargetau- Michigan, theyfacemajorchal- health insuranceexchangein products onthefledglingfederal next sixmonthstomarkettheir ing andmarketingblitzesoverthe with upto$44,000annualincome ty level.Thismeansindividuals to 400percentofthefederalpover- offered forpeoplewithincomesup based onincome. counts throughfederalsubsidies could offerupto30percentdis- private healthinsurancethat where individualscanshopfor gan HealthInsuranceMarketplace who’s listening? on enrollment; to spreadword Health insurers Ahem Michigan’s exchange,the Despite threeyearsofnewsarti- Surveys haveshowntheover- As healthinsurersplanadvertis- The taxcreditsubsidieswillbe CRAIN’S DETROITBUSINESS B Y J AY $2 acopy;$59year G See Enroll,Page24 REENE shows only29 SOKPHOTO ISTOCK Michi- , is ® 20130916-NEWS--0002-NAT-CCI-CD_-- 9/13/2013 5:24 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS September 16, 2013

MICHIGAN BRIEFS Sky high by the Fourth of July? Ⅲ Hope College has set an enrollment record for the third consecu- MSU adds drone to help farmers Study finds many in state are working without a Net tive year. The school’s website July’s issue of Crain’s Michigan says Hope has 3,388 students. Business reported on the emer- This past May, Crain’s Michigan Business report- Stephenson told MiBiz that many “nonadopters” Ⅲ Williams Furniture, a fixture in gence of the state’s drone industry. ed on efforts to tame Michigan’s “Internet wilder- simply don’t see the need to subscribe to a broad- Grand Rapids for 67 years, plans to And now Michigan State University ness” — those sections of the state where high-speed band service, either because they don’t see the value close its doors, WZZM-TV in Grand has added a drone to its vehicle access may as well be science fiction. A new report or they don’t see it as relevant to their lives. Rapids reported. fleet. The pilotless airplane will be from Connect Michigan indicates the extent of the A May 2012 study released by the nonprofit also Ⅲ The quarterly outlook from used to find ways to help farmers challenge. showed only two out of three Michigan small busi- the Business and Institutional Manu- increase their yields through bet- Almost three of 10 state residents —about 2.2 mil- nesses (those with fewer than 20 employees) use facturers Association in Grand ter use of fertilizer and water, The lion adults — did not have a subscription to a broad- broadband Internet. Connect Michigan also found Rapids projects North American Associated Press reported. band service at home, and just 47 percent have ac- that less than 50 percent of the state’s small busi- office furniture shipments to grow Bruno Basso, an ecosystem sci- cess to mobile broadband on a smartphone, nesses have a website. 4.1 percent in 2013 to $9.6 billion, entist at MSU, said the drone “is according to the report. “For a lot of hardware stores … that get involved up from June’s outlook that fore- like an X-ray. Before we can diag- Tom Stephenson, a community technology advis- in online sales, eventually 30 percent of their sales cast growth of 2.1 percent for the nose the problem, we need to col- er with Connect Michigan, said his organization are online,” Stephenson told MiBiz. “A lot of the year, MiBiz reported. lect as many details as possible.” shoots for about an 80 percent adoption rate. An Au- tourist industry, small hotels and small restaurants Ⅲ Kalamazoo is expected to get a gust report shows the rate in Michigan is about 70 aren’t online. A lot of communities, for example in new baseball team — at least for percent. northern Michigan … (many) aren’t online.” summertime, MLive.com reported. Holland battery plant shuts for Kalamazoo Baseball LLC will be a 6 weeks over chemical conflict member of the Northwoods League, by fall. No layoffs are expected Flint has been under state over- 110 full-time jobs at the site. made up of teams of top college LG Chem Michigan Inc. in Holland, during the shutdown. sight since 2011. Brown has said Ⅲ The city of Battle Creek plans players. which makes lithium-ion batteries the city still is dealing with $3 mil- to offer $16 million of general Ⅲ Grand Rapids-based Atomic for General Motors Co., is halting Saginaw’s city manager to be lion in structural debt. obligation bonds this month after Object announced that it has ac- production for up to six weeks be- postponing the sale because inter- quired Ann Arbor-based SRT Solu- cause of a controversy over a Flint’s new emergency manager est rates were too high, Fitch Rat- tions, a software developer, for an chemical, The Associated Press re- MICH-CELLANEOUS ings reported. Last month, Battle Darnell Earley, city manager in undisclosed sum. ported. Ⅲ Western Michigan University’s Creek joined Genesee and Sagi- LG Chem spokesman Jeremy Saginaw, will become the new Michigan Geological Repository for naw counties in postponing a Find business news from Hagemeyer said a chemical used to emergency manager in Flint start- Research and Education and Michi- combined $131 million of is- around the state at crainsdetroit make batteries may not be regis- ing Oct. 1, MLive.com reported. gan Potash Co. LLC told MLive.com suance after Detroit’s bankruptcy .com/crainsmichiganbusiness. tered with the U.S. Environmental Earley was appointed after the res- that underneath a section of filing, leading to the slowest wave Sign up for Crain's Michigan Protection Agency. He declined to ignation of Michael Brown, who Mecosta and Osceola counties of Michigan debt sales in a Business e-newsletter at crains name it. held the post for about two years. north of Grand Rapids could rest decade. detroit.com/emailsignup. The EPA said it didn’t order the Earley is a former Flint city ad- potentially billions of dollars of shutdown but recently issued a ministrator who served in 2002 as potash, a mineral deposit used in subpoena on LG Chem to learn its temporary mayor during a va- fertilizer. Theodore Pagano, gener- CORRECTION what chemicals are used there. cancy in that office. He has been al manager of Michigan Potash, es- Ⅲ The People Spotlight on Page 32 of the Sept. 9 edition should have Production began in July, with the Saginaw’s city manager for the timated that the project would cre- said Ken Strohschein is 42. first battery shipments expected past eight years. ate 300 construction jobs as well as

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September 16, 2013 CRAIN’S DETROIT BUSINESS Page 3 Cashing in on building market Second Stage

Uralli largely declined to Pending deals show BIG BIDDING comment on the deals, or the buyer, other than to Wayne County confirm that one buyer is property tax investor demand auction: interested in both buildings Opportunity and and is not based in the Unit- BY DANIEL DUGGAN risk, Page 4 ed States. He also noted that CRAIN’S DETROIT BUSINESS the deals are not closed. In past interviews with After Emre Uralli sold his Florida real estate Crain’s, Uralli has expressed optimism in the at the peak of the market in 2007, he set out city’s upside potential as an investor. across the country to find the next spot for an up- “There’s nothing but upside here,” he said in A plan for growth shouldn’t side. a 2012 interview, pointing to the vacant build- He wound up in Detroit. ings in the city. “These are amazing, historic be half-baked, Page 11 If the pending sales of his two major down- structures. Buildings like this will never be town investments close, Uralli stands to leave built again. We’re going to bring them back, Detroit with $6 million in profit. and with them, the city is going to come back.” Company index One buyer cast the winning bid in auctions That may well be the case, said Paul DeBono, a for two of Uralli’s buildings: the David Stott vice president with Southfield-based Farbman These companies have significant mention in this week’s Crain’s Detroit Business: Building on Thursday and the former Detroit Group. 313 Energy ...... 12 COSTAR GROUP Free Press headquarters building on Wednes- Selling the 209,410-square-foot David Stott Advocate Commercial Real Estate Advisors ...... 21 One buyer cast the winning bid of nearly $9 million day at prices of $8.95 million and $4.025 million, Building, at the corner of Griswold and State AlphaUSA ...... 1 for the former Detroit Free Press building (above) respectively. This comes after Uralli invested Area Properties ...... 21 and $4 million for the David Stott Building. $5 million and $2 million in the buildings. See Building, Page 21 Automation Alley ...... 12, 23 Blue Cross Blue Shield of Michigan ...... 24 Bold Cos...... 13 BorgWarner ...... 23 Central Michigan University ...... 12 Cequent Performance Products ...... 16 Detroit’s bankruptcy mediation is unfolding in a ‘million dollar courtroom’ Comerica Bank ...... 12 Consumers Mutual Insurance of Michigan ...... 24 Detroit Manufacturing Services ...... 22 Detroit Renewable Energy ...... 6 Detroit Renewable Power ...... 6 Detroit RiverFront Conservancy ...... 17 Detroit Venture Partners ...... 12 Eaton ...... 23 Edward Lowe Foundation ...... 13 Farbman Group ...... 3 Faurecia ...... 1 Fluxtrol ...... 12 Ford Global Technologies ...... 12 Ford Motor ...... 1 Grand Haven Area Convention & Visitors Bureau . . 15 Health Alliance Plan ...... 24 Henkel ...... 23 Henry Ford Health System ...... 7 IBM Global Business Services ...... 23 IHS Automotive ...... 23 Illuminating Concepts ...... 7 Johnson Controls ...... 16 Jones Lang LaSalle ...... 21 Lormax Stern Development ...... 21 In the early 1930s, Judge Loveland Technologies ...... 4 Arthur J. Tuttle insisted his Madison Fourteen ...... 21 ornate and costly 1896 Mama’s Sweet Side ...... 11 Meijer ...... 13 courtroom be transfered to Michigan Brewers Guild ...... 15 the new courthouse in Michigan Economic Development ...... 13 Detroit. Preserved in the Midwestern Sanitation ...... 6 process were $1 million in National Center for Manufacturing Sciences . . . . . 23 marble walls and Oakland Mall ...... 21 decorative carvings. Oakland University ...... 12 Pratt & Miller Engineering ...... 12 Priority Health ...... 24 Promote Michigan ...... 15 Resource Recovery Systems ...... 6 PHOTOS BY ARA HOWRANI RHD Tire ...... 13 Rizzo Environmental Services ...... 6 BY AMY HAIMERL Downtown Develop- Rush Group ...... 22 CRAIN’S DETROIT BUSINESS ment Authority, De- Stokas-Bieri Real Estate ...... 21 troit Fire Fighters TechShop ...... 12 etroit is home to the “million dol- and Police Officers Traverse City Convention & Visitors Bureau ...... 15 lar courtroom.” And that’s where associations — will TriMas ...... 16 find the stark reali- TRW Automotive ...... 23 the city’s bankruptcy will be medi- ties of Detroit then Unisource Office Furniture Parts ...... 13 D Waste Management of Michigan ...... 6 ated. and Detroit now as Wheelhouse Detroit ...... 17 Gilt they try to work through $18 billion in debt and Gilt Whole Foods Market ...... 11 When the creditors in the Chapter 9 case show up for their first official mediation session how to handle pensions, unions, retirements Tuesday, they’ll be entering Courtroom 734 in and more. Department index the Theodore Levin U.S. Courthouse. That’s the They’ll be ensconced within walls made from BANKRUPTCIES ...... 10 home of Chief Judge Gerald Rosen, who pre- 30 varieties of marble culled from around the sides over the U.S. District Court for the Eastern Dis- globe. The judge’s bench itself is carved of East BUSINESS DIARY ...... 18 trict of Michigan. Indian mahogany and flanked by two 12-foot CALENDAR ...... 19 There in Rosen’s domain they’ll find an opu- columns imported from Italy, topped by lions, CAPITOL BRIEFINGS...... 10 and made of white and pink marble. Decorative lence to remind them of Detroit’s former wealth. CLASSIFIED ADS ...... 21 Those called to appear — including the city’s medallions adorn the room, made of Mexican trip KEITH CRAIN...... 8 biggest creditors, such as the General Retirement onyx and white, pink and black marble. System, Police and Fire Retirement System, UAW, MARY KRAMER ...... 9 AFSCME, Berkshire Hathaway Reinsurance Group, See Court, Page 25 OPINION ...... 8 OTHER VOICES ...... 8 Crain’s Michigan Business Business events PEOPLE ...... 20 THIS WEEK @ Sign up for the roundup of statewide During any given week, events tailored to business RUMBLINGS ...... 26 news delivered to e-mail inboxes every are held throughout the region. Check them out at STAGE TWO STRATEGIES ...... 11 WWW.CRAINSDETROIT.COM Wednesday: crainsdetroit.com/getemail. crainsdetroit.com/section/events WEEK ON THE WEB ...... 26 20130916-NEWS--0004-NAT-CCI-CD_-- 9/13/2013 5:53 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS September 16, 2013 Wayne County property tax auction: Tired of missing your ﬂight? Large, complex, opportunity, risk

BY GARY ANGLEBRANDT into the field to check on properties about 13 percent of the total, with SPECIAL TO CRAIN’S DETROIT BUSINESS of interest, earning fees for re- 1,600 parcels purchased. Michigan search they do on properties the buyers bought the other 10,300. It’s almost fall, and in Southeast class ends up buying, and, for stu- Those figures are in line with in- Michigan that means the country’s dents who choose to invest in the formation gathered at Loveland Tech- biggest property tax auction is un- pool of funds used to buy proper- nologies LLC, the Detroit business derway. ties, earning returns. behind WhyDontWeOwnThis.com, The Wayne County property tax Citibank is working with the which tracks the auctions and sta- auction takes place online, at class to provide 30-year mortgages tuses of Detroit properties. wayne.realforeclose.com, and for as low as $10,000 at 4.6 percent “I would expect it to be less than there are actually two of them. The to potential buyers, Strather said. 10 percent,” said Alex Alsup, Love- first round, which went live Sept. He said many occupants don’t re- land business officer and partner. 5, with closings beginning Sept. 23, alize they can participate in the Some foreign buyers probably Join the CLUB sets properties at a starting bid auctions, or that they can buy their partner with locals, so the office equal to the amount owed in taxes. homes at auction even after losing cross-referenced bank accounts 1 (248) 860- 6378 • [email protected] The second, held in October, sets their homes in a mortgage foreclo- looking for foreign sources and properties that didn’t sell in Sep- sure. That’s because lenders, too, came up with similar numbers. Keeping you on schedule tember at a starting bid of $500. sometimes don’t pay their taxes. Szymanski said even if some trans- More than 18,000 properties are “Yes, banks do walk away from actions are masked by local ac- on the block. Last year, the county properties,” Szymanski said, counts, the total would still not be treasurer’s office offered 21,350 roughly estimating this year’s col- that high, and noted that foreign properties and sold 12,333 for a total lection of tax-foreclosed properties buyers have no reason to hide their of $46 million. The person in charge includes 1,700 parcels belonging to purchases since they aren’t illegal. of the auctions, Chief Deputy Trea- financial institutions. “In my mind, where a person surer David Szymanski, said he’s That’s one of the widespread be- lives is not as important as how never heard of another auction that liefs about the auction that hap- they treat the property,” he said. comes close to being as large. pens to be true. Another belief is Loveland held two classes on the The 18,000 figure comes from a that most of the buyers are foreign. auction this summer, and about

INTELLECTUAL PROPERTY ATTORNEYS total 42,000 properties on which the The numbers say otherwise. Ac- 150 people showed up to each, sug- treasurer’s office initiated foreclo- cording to a spreadsheet provided gesting heightened interest.

sure proceedings. “We could have to Crain’s by the treasurer’s office, “I expect it to be more active pursued twice as many, but our of- of the 12,250 parcels sold at last than last year’s auction. It’s a com- fice couldn’t handle the volume,” year’s auction, 263 — or about 2 per- bination of the attention on De- They are not just “ Szymanski said. cent of the total — were from “non- troit going through bankruptcy Cuyahoga County, which en- USA” buyers. Buyers in the U.S. and more stories about cheap compasses Cleveland, is the coun- outside of Michigan accounted for property,” Alsup said. “patent lawyers, but ty with the next highest figures, as far as Szymanski knew. Cuyahoga our trusted advisors. initiated foreclosure proceedings on 801 delinquent properties from January through end of July this JAMES SCAPA, CEO Altair Engineering year, and expects the number to hit 2,600 by year’s end, according to its county prosecutor’s office. Cuyahoga has a total of about 48,000 delinquent properties built YOUNG BASILE. Advisors to the world’s most innovative companies. up over several years. Wayne County’s comparable figure is 199,000. Szymanski doesn’t expect Wayne County’s number to begin ANN ARBOR • TROY • SILICON VALLEY falling for another two years. One of the many issues that arise WWW.YOUNGBASILE.COM from managing the volume of properties is that people don’t do their the homework and end up with properties that are rubble. They might only have looked at Google Maps and saw an image of a nice home, not realizing it no longer exists. leading The treasurer’s office this year considered bundling dilapidated properties into one auction item that no one would touch, and then Home Care put them on a path toward demoli- tion. The idea was dropped, howev- Featuring: er, because of a lack of time, with DEBORAH WAHL the exception of a few failed subdi- MCMANUS PulteGroup vision and condo developments. Senior Vice President and choice DISTINGUISHED BUSINESS LECTURE Chief Marketing Oﬃcer The auction attracts buyers of all sorts, from gougers and specu- Leveraging Your Brand lators to renovators and do-good- ers, say businesses, nonprofits and of michigan real estate professionals familiar TUESDAY, OCTOBER 8, 2013 with it. Herb Strather, chairman of 7 p.m. Lecture Strather Academy and former chair- * Madonna University Kresge Hall man of MotorCity Casino, has been physicians 36600 Schoolcraft Road (at Levan) urging metro Detroiters to partici- Livonia, MI pate in the auction and become homeowners. *Based on claims data independently verified by a third party Lecture is open to the public at no charge “How is the city going to look 10 Seating is limited years from now if it’s predominant- R.S.V.P. to 734-432-5589 ly owned by outsiders?” he said. Strather holds an auction course for adults that lasts through the Oc- INSPIRING ENTREPRENEURS SINCE 1989 tober auction and takes the stu- 866.902.4000 Madonna University School of Business t madonna.edu dents through a real buying and www.residentialhomehealth.com selling process, with students going DBpageAD_DBpageAD.qxd 9/11/2013 2:46 PM Page 1

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Page 6 CRAIN’S DETROIT BUSINESS September 16, 2013 With privatization, less city waste likely to head to incinerator

BY CHAD HALCOM In fact, three of the 10 bidders tons per day) continue to make the Inc., which has municipal waste no municipal waste contracts in CRAIN’S DETROIT BUSINESS collectively own seven of the eight plant an attractive disposal op- hauler contracts with about 30 Michigan, and was bidding to dis- active landfills in the tri-county tion,” he said. communities in Southeast Michi- pose of yard and bulk waste within No matter who comes out a win- area, where they’d pay no tipping The city RFP calls for Detroit to gan, including more than a dozen the city, said director of business ner among the 10 bidders to collect fees to dispose of waste, and a be divided into four geographical in Macomb County. The Sterling development Jason Ziss. Detroit’s solid waste and recycling fourth is going through regulatory regions, meaning multiple haulers Heights-based company is seeking Resource Recovery Systems Inc., contract starting in early 2014, a reviews to open a new landfill of may win contracts. Trash collec- approvals from Macomb and the an Ann Arbor division of ReCom- likely loser in revenue and energy its own in Macomb County. tion for about 250,000 households state to open its own proposed munity, a recycling materials pro- output will be the city incinerator. Nowling said the city expects is included in the proposal. landfill, Clinton Valley Farms, cessing and waste production com- The company that owns the private contractors who do haul Companies that submitted bids next to Pine Tree Acres in Lenox pany based in Charlotte, N.C. waste-to-energy plant, Detroit Re- waste to the plant to charge less by the deadline to the city Finance Township. Unity Midwest Waste & Recy- newable Energy LLC, will likely re- per ton to the city than what Pub- Department for review were: Republic Services Inc. of cling, an affiliate of Unity Disposal & ceive less waste at a lower tonnage lic Works pays today to Detroit Re- Midwestern Sanitation Co., Phoenix, Ariz., which operates the Recycling LLC, in Laurel, Md., fee rate after the city finishes pri- newable Energy subsidiary Detroit which handles trash and yard Carleton Farms Landfill in Huron which services more than 100,000 vatizing waste collection from its Renewable Power, the plant owner. waste in Westland and garbage Township, the Sauk Trail Hills De- residents per week, according to Department of Public Works, said Bill The city pays around $25 per ton and recycling pickup for Taylor, in velopment Landfill in Canton its website. Nowling, a spokesman for Detroit to drop off waste at the incinera- Wayne County. The Inkster-based Township and the Oakland J. Fons Co., Detroit. Emergency Manager Kevyn Orr. tor, and Nowling said that’s about company is bidding to become a Heights Landfill in Auburn Hills. Orr has said the current city- The city waste contract includes 20 percent more than some neigh- hauler for only regions 1 and 2, on Advanced Disposal, Ponte Ve- owned waste collection system and solid waste, bulk disposal, yard boring communities who pre-sort the city’s northwest and near west dra, Fla., operates the Arbor Hills its recycling services cost Detroit waste and single-stream recycling. waste or have removed recyclables side, because of their relative prox- landfill in Northville along with about $50 million per year to oper- Bidders can choose to choose to prior to disposal. imity to the company’s footprint in three transfer stations in Detroit, ate, and the privatized system bid on collection only, or collec- The private bidders who use the western Wayne County, said Presi- Roseville and Pontiac. could save about $15 million. tion and disposal. incinerator are expected to do the dent Paul Ruthenberg. Emterra Group, the Burlington, Chuck Rizzo Jr., president-CEO The Detroit incinerator receives same, and pay a comparable lower Waste Management of Michigan, Ontario-based parent of Emterra En- of Rizzo Environmental Services, and processes more than 3,000 tons rate that would be rolled into what a subsidiary of Houston-based vironmental USA, Flint, which in thinks the private sector could op- per day of municipal solid waste, it charges the city, he said. Waste Management Inc. (NYSE: late 2012 bought a majority of the erate the waste and recycling col- with the city as its largest cus- Sarah Grazier, senior public re- WM) that operates three local assets of Richfield Management LLC lection at a cost between $5.5 mil- tomer. It generates up to 68 lations manager at Calypso Commu- landfills — Woodland Meadows in out of bankruptcy, including the lion and $7.5 million per district, megawatts of electricity for DTE En- nications in New Hampshire and a Van Buren Township, Eagle Val- Cove Landfill, now named the or less than $30 million overall, for ergy Co. subsidiary Detroit Edison spokesman for Detroit Renewable ley in Orion Township, and Pine Huron Landfill in Bad Axe. Also greater savings than Orr’s office Co. and steam for the energy loop Energy, confirmed the $25 per ton Tree Acres in Lenox Township. acquired were a Port Huron trans- had projected. that provides heating and cooling rate for Detroit but said the compa- Eagle Valley also has a renewable fer station and the trash/recycling “It’s a good system to divide it steam for 145 buildings in down- ny would not comment on other energy plant that converts landfill contracts for about 50 mid-Michi- into four districts, because if you town Detroit. rates it charges to other customers. gas into electricity for DTE Ener- gan communities. had one operator for the whole But Detroit’s RFP on privatizing John O’Sullivan, president of gy, Pine Tree Acres has a plant Kurtz Bros. Inc., an Indepen- city, the residents might expect waste collection, to which 10 com- Detroit Renewable Power, said in a that supplies to Consumers Energy dence, Ohio-based supplier of land- more of the same, and there could panies responded last week, does statement that the company’s Corp., and Woodland Meadows has scape products, yard waste collec- be cost increases from the private not require that all or part of the rates are competitive. been a thermal energy and boiler tion and operations of a material hauler later,” he said. waste continue flowing to the in- “DRP’s central location and fuel supplier to Ford Motor Co. reclamation center in Brooklyn “But if you have four, and two or cinerator. large processing capacity (3,300 Rizzo Environmental Services Heights, Ohio. The company has more companies operating those within the city, then residents in some neighborhoods who aren’t happy can check the rates their neighbors are getting in the other district, and you have more potential for competition.” Tom Horton, government affairs manager for the Michigan, Indi- ana and Ohio region of Houston- based Waste Management, confirmed the company is a bidder but would not elaborate on details of its proposal to the city. He did say, however, that bidders on various Kyle Sasena, VP, International Banking Specialist districts in the city can look at Fred Fordon, SVP, Commercial Banking Manager landfill tipping and fees it would pay the incinerator in shaping The Entrepreneurial Bank. their own bids. “One cost that’s related to waste hauling that the company can consider in shaping its bid is transportation,” he said. “The Detroit Level One Bank makes international trade easy. waste incinerator is probably clos- est to all of the work that’s being Import and export, safe and eﬃcient. done, so that’s a factor.” The Purchasing Division will review all the bids before forwarding Level One, your international bank, right here at home. findings to Orr, who will probably make a decision in the first or second week of October, Nowling Call us. said. Depending on the winning bidders’ readiness and equipment needs, the private haulers could Contact Greg Wernette begin service as early as February. Ruthenberg, of Midwestern San- Entrepreneur and Chief Lending Oﬀicer, 248-737-0300 itation, agreed with Rizzo that privatization could save the city more than Orr’s estimates called for this summer but did not get into the specifics of his own bid. He also said he only hauls a small portion of the solid waste his company col- lects to the Detroit incinerator. “I think you’re going to see some improvement, and the $15 million (Orr’s savings) estimate is proba- 32991 Hamilton Court ∫ Farmington Hills, MI 48334 ∫ levelonebank.com bly a bit conservative,” he said. Chad Halcom: (313) 446-6796, Commercial Banking ∫ Retail Banking ∫ Mortgage Services [email protected]. Twitter: @chadhalcom 20130916-NEWS--0007-NAT-CCI-CD_-- 9/13/2013 5:46 PM Page 1

September 16, 2013 CRAIN’S DETROIT BUSINESS Page 7 Illuminating Concepts expects to brighten revenue 40 percent with wireless system BY SHERRI WELCH vested more than $11 million to de- Auburn Road. Manufacturing is not CRAIN’S DETROIT BUSINESS velop the technology over the past The company also has nonpaying 12 years, Harwood said. It can be in- pilot installations at Henry Ford Farmington Hills-based Illuminat- tegrated into new, LED light poles Health System in Detroit and at ing Concepts Inc. expects its wireless or retrofitted to existing lampposts. Navy Pier in Chicago, the Mercedes- just coming back, lighting, display and broadcast sys- The company is positioning Intel- Benz Superdome in New Orleans, tem for streetlights to help increase listreets as a public safety and en- Asbury Park in New Jersey and its revenue by a projected 40 per- it’s moving forward. tertainment system that can control Sony Pictures Studios in California, cent in the coming year. public lighting and save money on Harwood said. The lighting and multimedia de- energy costs. It comes equipped The company also has started sign firm is in contract negotia- with speakers, microphones, dis- looking at regional malls, big-box tions for installation of its Intel- "OFXJOEVTUSJBMSFWPMVUJPOJTSFWJUBMJ[JOHBOE play screens and cameras. retailers and car dealerships as po- listreets system in Lansing, Boston tential customers, Harwood said. Intellistreets can play holiday USBOTGPSNJOHUIFJOEVTUSZ BOE'PMFZBUUPSOFZTBSF and Lincoln, Neb.; is talking with Over the past two years, Illumi- music, pre-recorded advertise- BUUIFGPSFGSPOU8JUIBIPMJTUJDBQQSPBDIIPOFE transportation authorities in nating Concepts has added 15 em- ments or live broadcasts, re-route SM Chicago; and is in serious discus- ployees to handle the Intellistreets PWFSZFBST PVSOBUJPOBM-FHBM*OOPWBUJPO)VC people or traffic in the event of an sions with the University of Michigan, business, ranging from electri- emergency or traffic accident — GPS/FYU(FO.BOVGBDUVSFSTDBOIFMQHVJEFZPVS Michigan State University and Wayne cal/electronic engineers and de- and enable conversations between State University, said Ron Harwood, signers to inventory and produc- CVTJOFTTJOUPUIFOFYUHFOFSBUJPOGSPNSJHIUIFSF people monitoring the system and owner, CEO and creative director. tion supervisors and software those nearby. JO%FUSPJU He expects revenue from Intel- interface designers, Harwood said. A self-contained, post-top unit listreets to rise from about $500,000 It plans to add another six indus- -FBSONPSFBCPVU'PMFZT-FHBM*OOPWBUJPO)VCBU'PMFZDPNNBOVGBDUVSJOH PS this year to $2.5 costs $2,400 and can bring a return trial designers, salespeople and DPOUBDU%FUSPJU0GmDF.BOBHJOH1BSUOFS%BMKJU4%PPHBMBUEEPPHBM!GPMFZDPN million to $3 on investment within three years, field technicians in the next year. million next Harwood said. Units integrated Henry Ford had four Intel- year, boosting with LED lighting, audio and dis- listreets lamp posts installed in total revenue play screens start at $3,500 and yield June, said Marco Capicchioni, from a projected a payback, typically, in seven years. vice president of facility services. $10 million in Illuminating Concepts’ first In- The system has several thou- 2013 to $14 mil- tellistreets installation was in 2011 sand cameras across its campuses, lion in 2014. near its Farmington Hills head- and a central monitoring station, Intellistreets quarters on 10 Mile between Or- he said. “The reality is, (security is composed of a chard Lake and Middlebelt roads. officers) can’t look at all of the Harwood #0450/t#3644&-4t$)*$"(0t%&530*5t+"$,40/7*--&t-04"/(&-&4 wireless device Since then, it’s had contracts for cameras,” he said. ."%*40/t.*".*t.*-8"6,&&t/&8:03,t03-"/%0t4"$3".&/50 the size of the iPhone that can be installations in Las Vegas near Intellistreets draws attention to 4"/%*&(0t4"/%*&(0%&-."3t4"/'3"/$*4$0t4)"/()"*t4*-*$0/7"--&: integrated with an LED light or city hall, in Lansing near the certain areas based on what’s going 5"--")"44&&t5".1"t50,:0t8"4)*/(50/ %$ used with traditional light posts. Board of Water and Light’s new on there, he said, because the soft- ª'PMFZ-BSEOFS--1t"UUPSOFZ"EWFSUJTFNFOUt1SJPSSFTVMUTEPOPUHVBSBOUFFBTJNJMBSPVUDPNF /$MBSL4USFFU 4VJUF $IJDBHP *-tt Illuminating Concepts has in- plant, and in Auburn Hills on ware can detect if someone has fallen or if there is a gathering of people, an indicator that something may be amiss, he said. Henry Ford’s security officers can then ask if anyone needs assistance via a speaker on a light post. Capicchioni “We think this technology is really a big game changer for health care facilities, especially ones that run 24/7,” he said. Demand is rising for intelligent control systems for streetlights and exterior lighting, said Kari Laitinen, vice president of Ana- heim, Calif.-based Fortel Traffic Inc. Fortel’s Intelligent Lighting Module provides streetlights with dimming capability, integrated radar functions to do vehicle counts, sensors to take air quality measurements and linkage between the light post and billboard- style traffic message signs. Laws around air quality and municipal lighting efficiencies are driving interest in the technology for companies on the West Coast, he said, as are environmental con- cerns around air quality and the need to keep skies dark for natural habitats, as well as to reduce peak- demand energy use. Fortel has paid municipal installations for its controls in lighting in northern California and a pilot project in Hilo, Hawaii, with LED lighting company Swarco AG. “Our main focus has been with municipalities, but you’re opening TICKETS ON SALE TOMORROW, SEPTEMBER I7 AT NOON up a whole world with lighting,” Laitinen said. ONLY AT Sherri Welch: (313) 446-1694, [email protected]. Twitter: @sher- Limit 6 tickets per game, per person. Some restrictions apply. While supplies last. Tickets not available by phone or box ofﬁce. riwelch 20130916-NEWS--0008-NAT-CCI-CD_-- 9/13/2013 5:29 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS September 16, 2013 OPINION OTHER VOICES Bailout backers need reality check Property deals may Though considered sive corruption, abhor- aid for the city. And don’t expect nearly akin to blasphemy rent service delivery, loss much from Democrats, either — most everywhere else in of residents, impover- even those who call Michigan the country, the words ished neighborhoods and home — outside of carefully word- “federal bailout” sadly epidemic high crime. For- ed statements. signal rising tide continue to be a fallback get about the need to elim- Even President Barack Obama term for many purported- inate Detroit’s ineffective doesn’t seem to be willing to pub- s Detroit hosting the “real estate Super Bowl”? ly representing Detroit’s bureaucratic layers, licly make the case for federal aid. That’s the phrase that investor Herb Strather used to interests during this time restructure its finances, But Detroit bailout backers re- of bankruptcy. privatize targeted ser- describe last week’s auction of foreclosed residential prop- main unswayed. I The reasons certain city vices, tackle blight or cre- And that’s where the danger erties. officials, union heads, ac- John Sitkiewicz atively incentivize small- lies. At the same time, online auctions yield- tivists and pastoral leaders want a business development. As long as those calling for a fed- federal bailout are easy to under- Bailout proponents would much ed a bid of nearly $9 million for the David eral rescue continue to be seen Stott Building downtown — a building with stand: It perpetuates the status rather suspend reality so long as quo. they’re able to retain their posi- around the country as voices rep- an occupancy rate of about 15 percent — The fact that Detroit was driven tions of power and influence. resenting the city, Detroit will re- and $4 million for the former Detroit Free into a Chapter 9 bankruptcy filing Ironically, during their last main a national punch line. Press building a few blocks south. by an astonishing $18 billion debt gasps to remain relevant, those That should be something no As we report on Page 3, the owner of and has been disintegrating for holding out hopes for Washington, one with a genuine interest in moving the city forward would both buildings, Emre Uralli, stands to make decades is completely lost on D.C., intervention don’t realize the them. idea is a fantasy. want. a profit of a few million dollars if the deals Never mind the city’s years of Congressional Republicans are John Sitkiewicz is a freelance close. Uralli bought the buildings after sell- dysfunctional governance, perva- dismissing any notion of federal business writer. ing his Florida real estate portfolio at the peak of the market there in 2007 on the theo- ry that Detroit’s historic buildings had significant upside. This could be the proverbial rising tide TALK ON THE WEB Detroit has been waiting for. Significant in- COSTAR GROUP vestments by Dan Gilbert likely have David Stott Building From www.crainsdetroit.com helped raise prices on two fronts: visibility handled in federal court. I would and greater occupied density. Re: House bills aim to end online Reader responses to stories and retailers’ edge over local stores blogs that appeared on Crain’s prefer that pensions be the last It’s another potential sign that segments of the economy website. Comments may be area touched as bankruptcy moves can prosper even with the city in bankruptcy. This particular sham called the edited for length and clarity. through the court. However, De- “Main Street Fairness Act” has troit is bankrupt and this process been promoted by big business at- middle class again. needs to go forward as quickly and Paving a strategy for road repairs tempting to use small business as Michael Tucker cleanly as possible. its cover. This will do more damage Stephen Landes to small businesses that are devel- Michigan would lose that $12 Gov. Rick Snyder has backed off his push to get a compre- oping, or would have attempted to million and millions more as com- Re: UM, MSU ‘Best Colleges’ rankings hensive package of bills to increase revenue to invest in Michi- develop, an online presence in sup- panies leave for a friendlier envi- The U.S. News ratings are sub- gan roads. plementing their brick-and-mortar ronment. No company has to stay ject to a lot of very fair criticism: As an alternative, he’s pushing for legislation to charge locations. in a hostile environment. They are far too political in na- No Spin; Facts Please MJ fuel taxes at the wholesale rather than retail level. ture, and they attempt to quantify That’s a good alternative because it allows for future rev- something that is almost impossi- Re: Snyder backs off big gas tax hike Why is cloud computing any dif- enue growth. The current per-gallon levy at the retail level has ble to quantify. Their ranking sys- ferent than any other services starved transportation funding because people drive less and Then scrap the M1 project and tem strongly favors private the new bridge, which will use business? Will the Lansing have more fuel-efficient vehicles. schools, and they also rarely MDOT dollars, stop spending Lugnuts pass legislation so no ser- change more than one or two spots But any long-term strategy for road improvements also MDOT dollars on bike and walking vices businesses services are tax- from year to year. Regardless, they needs two companion elements. paths, canoe launches, etc., and be- able? Let’s get real here. receive a lot of attention, and in First, the truck weight limits need to be overhauled. Michi- gin spending our fuel taxes on its GStano that spirit, it is nice to have two of gan has higher weight limits than neighboring states. It’s intended purpose — roads and our universities rated as world- bridges. Re: Detroit retirees join labor unions class institutions. Both UM and senseless to invest in road surfaces if heavy truck traffic tears John Wilson them apart. in challenging bankruptcy law MSU are among the nation’s top 30 public universities. Second, the state needs strategic funding options for public Re: Michigan considers whether cloud This union ploy is reminiscent of It is also nice to know that the transit — in metro Detroit and other population centers. the auto companies in the 1970s re- Big Ten was the only major confer- computing is a taxable service fusing to acknowledge that the As the Regional Transit Authority begins operations in ence with every one of its mem- world had changed, preferring to So we lose $12 million in tax rev- bers ranked in the top 101, with Southeast Michigan, a clear vision for transit — and the steps enue. Just hike taxes on the poor, beg for government protection. required for public funding — should be taking shape, too. those on fixed incomes and the The claims of all creditors will be See Talk, Page 9 KEITH CRAIN: It’s time to start looking at tomorrow I have no doubt that our emer- spiracy, and they con- and appointed bureau- centives to attract companies to to Detroit. And if jobs come, com- gency manager will do a good job tinue to ignore the facts. crats could resume run- our city. Discounts on real estate, panies will need the bricks and of getting the Detroit financial Meanwhile, while Mr. ning the city and get us payroll and corporate taxes are mortar to house them. house in order. In fact, given the Orr is taking care of back into the same fi- some of the tools that could help. The journey has begun. With the decades of financial irresponsibili- yesterday and today, nancial mess that we’re We need to make Detroit not just selection of an EM, the first step of ty, it will be quite a feat if Kevyn once again it becomes trying to get out of to- an attractive alternative but an a very long journey has started. Orr can get it under control in less painfully obvious that day. overwhelming choice for expan- But it is only the beginning. We than two years. This is something not enough people are The real challenge is sion, relocation and location. have to have the foundation to be that has been 50 years in the mak- looking at tomorrow. not just getting Detroit There are a lot of communities successful. It simply isn’t enough ing. If we’re not careful, back on solid financial and states across the country that to just fix the balance sheet. Sadly, there are still quite a few we could easily fall back footing, but also creat- are extremely aggressive in eco- We have to look beyond the EM; folks who have not yet faced the fi- into the same dilemma ing the right environ- nomic development. Detroit and that’s critical to create a prosper- nancial reality. They still think that brought us to our ment for job creation. Michigan will have to compete ous and efficient community. bankruptcy is some sort of con- current state. Elected politicians Detroit will need financial in- with them if we want jobs to come It’s only the beginning. 20130916-NEWS--0009-NAT-CCI-CD_-- 9/13/2013 12:06 PM Page 1

September 16, 2013 CRAIN’S DETROIT BUSINESS Page 9 MARY KRAMER: Court problems hinder anti-crime efforts

Both candidates running for Talbot was named than they cost to oper- wanted to. “Everybody knows hoping the business community mayor of Detroit pledge to reduce “special judicial admin- ate. there is no consequence for not might pitch in there. crime. istrator” by the state Not in Detroit, paying,” says Talbot. A new chief judge, Nancy Wayne County Sheriff Benny Supreme Court to fix though. Talbot said es- Which makes “sweating the Blount, has been named to run Napoleon touts his 1-square-mile budget and operations timates of collection small stuff” even harder. day-to-day operations, giving Tal- plan — assigning officers to specif- problems. The district rates range from 10 per- To enhance collections, Talbot bot more time for the big-picture ic territories to curb everything court was outspending cent to more than 30 wants to give judges the option of problems. from petty to major crimes. its $31 million annual percent. sending offenders to nearby jails, Detroit has many urgent priori- Mike Duggan touts his “every budget by about $5 mil- Jail time can be a de- but he has to find the money to pay ties. Yet it’s hard to see how any neighborhood has a future plan,” lion. terrent — an incentive $40 a day plus transportation. crime-reduction plan can work with crackdowns on drug activity District courts han- — to pay fines. But To balance the budget, he al- without an effective district court. and metal scavenging. dle misdemeanor Wayne County has ready has cut about 40 jobs, reduc- Mary Kramer is publisher of Both plans echo some principles crimes, small-claims only a handful of jail ing the payroll to about 210 em- Crain's Detroit Business. Catch her in the “broken window” model: If suits, tenant-landlord beds allotted to misde- ployees. Other priorities include take on business news at 6:10 a.m. you sweat the small stuff — street- disputes and traffic and ordinance meanors; felons are the priority. union negotiations, fixing up the Mondays on the Paul W. Smith show corner drug dealing, graffiti, violations. And in many communi- So district judges have no “teeth” shabby court building on Madison on WJR AM 760 and in her blog at blight and code enforcement — it ties, they bring in more money behind their orders; they can’t Avenue and ultimately making the www.crainsdetroit.com/kramer. helps keep the big stuff from hap- through fines levied on offenders send many to jail even if they court a better place to work. He’s E-mail her at [email protected]. pening. But more enforcement means more arrests, fines and jail time, adding to the approximately 500,000 cases going through 36th District Court annually in downtown Detroit. And the court is having problems of its own. Since June, the court has been under the jurisdiction of its own HEALTHPLUS kind of emergency manager; state Court of Appeals Judge Michael CAN HELP LETTERS CONTINUED ■ From Page 8 Nebraska ranked 101. YOUR Walt

Re: Moceri to build townhomes, senior housing in $46M project in Auburn Hills BUSINESS Interesting choice to build a new development next to a failed development, industrial site and one of the oldest trailer parks I’ve ever seen. The biggest perks of this new THRIVE development are its proximity to the Clinton River Trail and major Elaine Schnueringer, HealthPlus highways. It would be nice if the Director of Health and Lifestyle Management added population would help grow downtown Auburn Hills, which is really looking good these days. BloggerDave

Re: Detroit slows Michigan muni-bond sales to fewest in a decade The Affordable Care Act is changing the way you respond to Maybe then the government will the health care needs of your employees. Learn more about healthcare get back to basics and only spend reform from Crain’s Health Facts what it takes in. That sounds very At HealthPlus, we have the experts to answer your questions healthy to me. free webinar series presented dhomant and ﬁnd the right plan for your business. Experts like Elaine by HealthPlus. Schnueringer, Director of Health and Lifestyle Management: Re: Office furniture dealer to put store, ‘hangout’ in Compuware building “Under the ACA, workplace wellness is taking a much larger Register at HealthPlus.org/healthfacts.aspx This is a great idea. Fantastic role. We’ll work with you to control your costs and develop synergy between showroom and a comprehensive health management strategy for your meeting space, and I love the idea of flipping the space to keep it business.” fresh. Certainly will inspire some nice collaboration and creativity. For more information about our health and lifestyle Guest programs, call 1-866-810-4540 or go to HealthPlus.org. Re: Keith Crain: Does anyone really care about issues? I have to believe the time for the U.S. to have a meaningful impact has passed. Not only have the wa- ters become muddied on the oppo- sition’s side — who are we really helping? — we now need to con- tend with Russian engagement as well. Increasingly, the core justifi- The Right Plan for a Healthier You™ cation seems to be becoming one of credibility, of saving face. That is ©2013 HealthPlus of Michigan, Inc. not the reason to go to war. JT Pedersen 20130916-NEWS--0010-NAT-CCI-CD_-- 9/13/2013 11:27 AM Page 1

Page 10 CRAIN’S DETROIT BUSINESS September 16, 2013 GOP leaders to focus on 2014 at policy forum

About 1,500 Republi- As in years past, atten- nary to pull together such a group While Republicans found suc- tial GOP candidates for the open can activists, elected offi- dees will hear speeches to speak. cess at the state level in 2012, U.S. Senate seat for which, so far, cials and donors from Capitol from potential GOP pres- “It shows the importance Michi- Michigan still voted for President former Secretary of State Terri around the state and na- Briefings idential candidates, gan is going to play going for- Barack Obama, and the GOP was Lynn Land is the front-runner. tion will board ferries Schostak said. ward,” he said. unable to unseat U.S. Sen. Debbie Crain’s will attend the confer- bound for Mackinac Is- Louisiana Gov. Bobby At the conference in 2012, GOP Stabenow. Schostak has praised ence and provide coverage of it land this weekend for the Jindal, Wisconsin Gov. presidential candidates Mitt Rom- the president’s campaign for its throughout the weekend online. party’s biennial policy Scott Walker and U.S. Sens. ney and Rick Perry addressed the use of technology and said it set conference. Rand Paul of Kentucky and crowd. the standard for data mining in the Main Street fairness Bobby Schostak, John Thune of South Dako- But for attendees this year, last election — something he does chairman of the Michigan ta are scheduled to speak much of the emphasis will be on not want to see the Democrats re- It’s been tried before and not Republican Party, said the at the conference, as are how to prepare to win in 2014. peat in the state. moved out of committee, but now supporters of bills known collec- 30th Mackinac Republican Chris Gautz Republican strategist Karl Three of the sessions will be fo- Attendees also will hear a dis- Leadership Conference, Rove and Reince Priebus, cused on technology, so activists cussion on the right-to-work law tively as the Main Street Fairness which begins Friday, will high- chairman of the Republican National will learn more about data mining and updates from elected leaders Act can at least say they helped light the successes of Gov. Rick Committee. for information on potential voters on their agenda for the coming advanced legislation that aims to Snyder and the Republican Legis- In a nonpresidential year, and how to more effectively reach year. And there is word there may level the playing field between lature. Schostak said, it was extraordi- out to voters. be more news about other poten- brick-and-mortar stores in the state and online, non-Michigan retailers such as Amazon, Overstock and eBay. Last week, the House Tax Poli- cy Committee voted to approve House bills 4202 and 4203. But all indications are that the bills won’t go much farther than the House floor. Many lawmakers, including House Speaker Jase Bolger, R-Marshall, think the issue needs to be solved at the federal level. The chairman of the committee, Rep. Jeff Farrington, R-Utica, ab- stained from voting, telling Crain’s previously that he also thought it was a federal issue. But because his members sup- ported passage of the bills, Far- rington said, he would not stand in the way. Currently, online retailers are required to collect tax on Michi- gan purchases only if they are headquartered here or have a physical presence here. HB 4202 would expand that to include retailers that work with $ Michigan-based people and Web , affiliates that refer customers to the retailers’ websites for a fee. The retailers would be responsible for collecting the tax at the point of sale. HB 4203 establishes the same af- filiations for collection of the use tax. Conservative groups have lob- bied against the bills at the state and federal levels, saying it is a new tax — something local retailers disagree with. The tax is owed by the consumer, regardless. But the way the system is set up YOUR WEALTH IS ABOUT MORE now, it requires residents to submit the taxes at the end of the year THAN DOLLARS AND CENTS. from all their prior purchases made online. State officials say IT’S ALSO ABOUT CREATING A LEGACY only a nominal number do so. Under these bills, consumers FOR THE NEXT GENERATION. would pay the tax at the time of purchase, just as they would if they purchased the item in a That’s why Fifth Third Private Bank Advisors want to know about store. more than just your assets. Asking about your family, passions and Chris Gautz: (517) 403-4403, the legacy you want to build helps us design a personalized plan [email protected]. Twitter: to accomplish your goals. @chrisgautz Put our more than 100 years of curiosity to work for you. And the next generation. Learn more at 53.com/legacy.

Deposit and credit products provided by Fifth Third Bank. Member FDIC. Equal Housing Lender. BANKRUPTCIES Fifth Third Private Bank is a division of Fifth Third Bank offering banking, investment and insurance products and services. The following business filed for bank- Fifth Third Bancorp provides access to investments and investment services through various subsidiaries, including Fifth Third Securities. Fifth Third Securities is the trade name used by Fifth Third Securities, Inc., member FINRA/SIPC, a registered broker-dealer and registered ruptcy protection in U.S. Bankruptcy investment advisor. Registration does not imply a certain level of skill or training. Investments, investment services and insurance: Court in Detroit Sept. 6-12. Under Chapter 11, a company files for reorga- Are Not FDIC Insured - Offer No Bank Guarantee - May Lose Value Are Not Insured By Any Federal Government Agency - Are Not A Deposit nization. Chapter 7 involves total liq- Insurance products made available through Fifth Third Insurance Agency, Inc. © Fifth Third Bank 2013. uidation. Quality Housing LLC, P.O. Box 464, Rich- mond, voluntary Chapter 11. Assets and liabilities not available. — Ross Benes 20130916-NEWS--0011,0012-NAT-CCI-CD_-- 9/13/2013 11:39 AM Page 1

September 16, 2013 CRAIN’S DETROIT BUSINESS Page 11

GUIDING PRINCIPALS Grand Rapids biz leaders build mentoring program, Page 13

growing small businesses

EDITOR’S NOTEBOOK

Amy Haimerl is entrepreneurship editor. She can be reached at (313) 446-0416 or at ahaimerl @crain.com

Amy Haimerl Co-founder of Twitter wants to talk to biz

Jack Dorsey has a knack for starting and growing businesses. First, he co-founded Twitter Inc. Then he created Square Inc., a rapidly growing mobile-payment company. In the three years since Square started, it has gone from processing nothing to $15 billion a year. You may have paid using the tiny credit card readers in shops such as Astro JOHN SOBCZAK Coffee or the Siblings Constance (left), Anthony and Kathleen Haralson work on orders, which have soared since Detroit-based Mama’s Sweet Side started selling in Peacock Room, Whole Foods Market. but they are also used by Eastern Market to help vendors take credit cards. Now the University of Dorsey Michigan graduate Growing pains is channeling his knowledge into a national Let’s Talk tour to help business owners learn to BY AMY HAIMERL “The kitchen we’re in, for in- find customers, to scale a business, CRAIN’S DETROIT BUSINESS stance, from Wednesday through work with city government and more. Supplying an increased demand Sunday of next week, it’s booked The free event in Detroit will be hen the Detroit Whole solid,” said Haralson. “So we Tuesday at St. Andrew’s Hall. Joining Foods Market opened have to be strategic about how him are Molly O’Meara, co-owner of W we fill our orders. Our premise is Beau Bien Fine Foods; Pam Turkin, in June, the 119 takes careful business planning that our cakes are fresh and have owner of Just Baked; Rachel Lutz, Michigan merchants selected no preservatives; we bake it and owner of the Peacock Room; and to provide retail goods there Already Mama’s — which is tainable way is a difficult hurdle send it out to the customer. We Megan O’Connell, proprietor of Salt & known for its Dream Cake, a for many businesses. Scaling up Cedar Letterpress. Find more details hoped that their products don’t want to change that.” homestyle Bundt cake made too fast can increase costs too at squareup.com/lets-talk. would fly off the shelves. And The Haralsons are contemplat- with natural ingredients — is ex- rapidly; scaling up too modestly Some of Dorsey’s advice: fly they have. ing opening their own commer- panding into the West Bloom- can stall opportunity. cial kitchen with a small retail op- Building customers: No matter how Sales have been so strong for field and Ann Arbor Whole So far, the brother-sister team eration in the front but are aren’t big or small you are, you are faced with some vendors that they are in the Foods and potentially other loca- at Mama’s Sweet Side has self- very similar things. No. 1 is finding new certain how they want to fund it enviable but challenging position tions. To keep up with demand, funded the business, investing or whether it’s even a smart idea. customers. Second is, once you find the Haralsons recently hired two $35,000 from Anthony’s savings, customers, how do you keep them? of having to rapidly scale up to “That’s the challenge for us: when meet the demand. employees, putting its total staff bonuses and other windfalls to seek a loan and when to seek in- You are your own worst enemy: Detroit-based Mama’s Sweet at six part-timers. from his day job. But they can’t vestors,” Haralson said. “Because The biggest thing is that it’s really They are at the critical decision increase their cake and cupcake hard to start. The biggest block is Side, for example, has seen its we really wanted to grow Mama’s point on how to manage growth. production indefinitely in their yourself. Naturally, we make excuses sales jump 350 percent so far this as much as we could on our own. And managing growth in a sus- existing commercial kitchen. about why we shouldn’t build year, thanks in significant part “Here is a great example: something, and that kills companies. to landing the Whole Foods ac- When we were ordering boxes for Get the idea out of your head: If count. The 2-year-old company’s our mini Dream Cakes, I didn’t you have an idea, get it out of your revenue was $12,000 in 2012 know what our first order was go- head and into whatever medium based on Internet sales and ing to be like, so I ordered 100 makes sense for you: code, writing, desserts served in restaurants boxes. The first order from Whole drawing. A lot of people, and I include such as Union Street. By compari- Foods was 100. So it was, like, myself, tend to have all these ideas son, it has done $20,000 in just wait a minute. Pursuing opportu- and keep them in their heads. the two months since Whole nities, understanding what the Have a fantastic customer Foods opened. Now, Anthony Whole Foods demand is, is really hard.” experience: Design your company Haralson, who co-owns Mama’s Market, which It’s a complicated question for around ensuring that experience Sweet Side with his sister, Kath- opened a store in any business owner, even ones happens. In the early days of both leen Haralson, expects annual Detroit in June, who have a law degree (Kathleen) Twitter and Square, it was easy to put revenue of $110,000 for 2013. says it tries not to and an MBA (Anthony) between let its new vendors the tech before who was using it. If you “We can’t keep anything on the them. drown in good focus on who is using it, you can work shelves,” said Anthony Haralson, backward to the right structure. fortune. 45. SUZANNE JANIK See Growing, Page 12 20130916-NEWS--0011,0012-NAT-CCI-CD_-- 9/13/2013 11:39 AM Page 2

Page 12 CRAIN’S DETROIT BUSINESS September 16, 2013 Second Stage Ford Global Technologies’ Coughlin among Growing: Business plans ■ From Page 11 Similarly, the founders of 313En- what you want to be and staying as the winners of Automation Alley awards ergy, a Detroit-based energy drink close to that plan as makes sense.” company, are figuring out how to Mama’s Sweet Side is trying to re- BY AMY HAIMERL University. expand — as they go off to college. member that as the owners judge CRAIN’S DETROIT BUSINESS Ⅲ Educational program of the year: Central Michigan Sawyer Altman and Mathew Tukel, their next moves. It’s a lesson that University New Venture Competition, which awards both 18, started 313Energy in their Haralson learned in business school Bill Coughlin, president and CEO of Dearborn- more than $65,000 in startup capital and in-kind ser- high school entrepreneurship club and now must apply to his own life. based Ford Global Technologies LLC, was honored Fri- vices each year. Since its inception three years ago, initially as a bottled water compa- “My sister and I, we argue, but we day night as Entrepreneur of the Year at the 13th the competition has helped more than 250 aspiring ny that would give money back to both really think it’s being smart annual Automation Alley Awards Gala at The Henry entrepreneurs from Central Michigan University and local charities. “But we found that about how we scale not just pursu- hotel in Dearborn. Michigan Technological University. nobody wanted to drink the river ing everything,” Haralson said. Coughlin oversees intellectual property for Ford Ⅲ Global trader of the year: Auburn Hills-based Flux- water,” Altman said. “That was the “Mama’s Sweet Side would never be Motor Co. Under his watch, Ford employees have sub- trol Inc., which exports composite materials for mag- connotation of Detroit water. So we in a lot of grocery stores in Michigan mitted 60 percent more inventions, thanks in part to netic flux controls. The company has $12 million in sat down and had the epiphany that because it’s not our brand. We don’t an incentives program that Coughlin developed. overseas sales, accounting for more than 65 percent Detroit doesn’t need water, it needs have the shelf life because there are At his behest, Silicon Valley-based TechShop Inc. of the company’s revenue. Founder Robert Ruffini is energy. It’s kind of symbolic.” no preservatives.” opened a Detroit outpost, giving Ford employees and a member of Automation Alley’s International Busi- At first the energy drink could Quality is very important to the area residents access to a 33,000-square-foot facility ness Services Advisory Council. only be found in a few small retail two professionals, who learned to equipped with fabrication and design tools, includ- Ⅲ Technology company of the year: New Hudson-based shops, but the cases flew off the cook from their mom and grand- ing plasma cutters and 3-D printers. TechShop Pratt & Miller Engineering Inc., which offers design, mod- shelves. “We were leaving school mother and named the company af- charges $125 for a monthly membership, and Ford eling and simulation, manufacturing, testing and de- and dropping off cases after school ter them. They even carry a underwrites the cost for about 2,000 employees. velopment services to clients in the motorsports, auto- and on our lunch breaks,” Altman caramel cake in homage to the one Coughlin is also a member of the board of directors motive, defense and commercial industries. said. that was a birthday staple in their for the Intellectual Property Owners Association and an ad- The Michigan Economic Development Corp. sponsored Their early success caught the house. (Although, they add a little junct professor at Thomas M. Cooley Law School, where the event, along with Clark Hill PLC, Kelly Services Inc., eye of Josh Linkner, CEO of Detroit sea salt to modernize the cake. “As he teaches e-commerce law and trade secret law. Foster Swift Collins & Smith, the Detroit Regional Chamber Venture Partners, who invited them a kid, we would never have eaten Other award winners are: and TechTown Detroit. to spend a summer incubating the that,” Haralson said with a laugh.) company. They have since expand- So to figure out whether the Ⅲ Member of the year: Rochelle Black, vice president Amy Haimerl: (313) 446-0416, [email protected]. ed into more than 30 locations, in- company could take on a second for government and community relations at Oakland Twitter: @haimerlad cluding the Ann Arbor Whole store, Haralson asked himself this Foods and Plum Market. But they question: If Mama’s did the same want to do more, even as Altman amount of business in the West left this month for Stanford and Bloomfield store as in Detroit — or Tukel started at Wayne State. even 50 percent less — could the “We’re doing around 250-300 cas- company meet demand and keep es a month,” Altman said. “And up the quality. “If the answer was When it’s your spine... what we’d like to see, to prove that yes,” he said, “then we expand.” model works, we would like to take The answer was yes. But with it to bigger distributors that are additional stores, the answer is un- why go anywhere else? convenience, gas stations, etc.” clear. So, until they can get more While Altman and Tukel are commercial kitchen space, they away at school, they have hired will forgo rapid growth to main- someone to manage the company. tain quality. Whether you come to But they are still on the precipice Those are exactly the types of Beaumont for a herniated of wondering how and when to calculations Cope and Anderson disc or a rare spinal cord grow. recommend to their clients. Addi- Exactly how to scale up is the tionally, the Michigan Small Busi- injury, you’ll find the most question. Mama’s and 313Energy ness and Technology Development advanced spinal care and other small businesses often Center has templates for self- anywhere. face this issue when key contracts assessment to answer questions fall in place. Crain’s asked the ad- about costs and revenue opportu- vice of two experts whose jobs are nities. A place where ground- helping second-stage firms grow: “You can project those opportu- breaking research is Mike Cope, Comerica Bank’s senior nities forward a couple of years so revolutionizing spine vice president for small-business you can make the decision on banking in Michigan; and Thomas whether taking on debt is support- surgery. Where Beaumont Anderson, who is a senior director ed by a high probability of in- surgeons are performing at Automation Alley and oversees its creased sales that will service the artificial disc replacement technology business accelerator debt,” Anderson said. and minimally invasive programs. From Whole Foods’ perspective, “One size doesn’t fit all; it really the company wants to make sure procedures that mean less varies wildly from industry to in- its vendors can handle all of the pain, lower risk and faster dustry as to how you go about success it can throw their way. recovery. growth,” Cope said. “But first and They don’t have a specific vendor- foremost, you have to ask your- training program or any growth self, ‘What’s the advantage of ex- assistance, but they do try not to let Do you have panding.’ And I don’t mean that anyone drown in good fortune. a Beaumont doctor? lightly. Show it financially. Does “When we start with a new local it truly make sense to expand? product, we may not know where What would it do for you? Make that company is in their maturity, sure you fully vet that and under- so we will only start them off in stand that. one location to give them an op- “I remember a guy across the portunity to understand how street who had a really thriving Whole Foods operates and how Call 248-551-6137 or fairly small restaurant, and he did their product will sell,” said Ste- a lot of catering. It was wildly suc- fanie Garcia, Whole Foods local visit beaumont.edu. cessful and people loved it. He forager. moved to a much bigger location, “Once the company decides that and I can’t tell you want happened, they are ready to grow a little bit whether it was the ambiance or he more, we give them the opportuni- Jeffrey Fischgrund, M.D., is invested too much, but it failed. So ty to reach out to other locations a Board Certified, fellowship- bigger is not always better.” freely. It’s a win-win partnership trained spine surgeon at “My key piece of advice,” Ander- we are looking to establish. We Beaumont Hospital, Royal Oak. son said, “is that it’s more impor- wouldn’t want to see a vendor He and his colleagues perform tant to grow customers than it is to grow too quickly where they thousands of minimally grow financing. As you grow cus- couldn’t fill the orders.” tomers, that’s cheaper financing Amy Haimerl: (313) 446-0416, invasive surgeries every year. because they are buying your [email protected]. Twitter: product. … The second is knowing @haimerlad 20130916-NEWS--0013-NAT-CCI-CD_-- 9/13/2013 11:11 AM Page 1

September 16, 2013 CRAIN’S DETROIT BUSINESS Page 13 Second Stage Guiding principals: GR biz leaders build mentoring program

BY ROD KACKLEY grow their business,” he said. 100 people. Jandernoa advised one of his Some “brief conversations with SPECIAL TO CRAIN’S DETROIT BUSINESS Kevin Haviland, another mentee, Statistics compiled by the Lowe mentees that he ought to think people in Detroit” have occurred owns RHD Tire in Grand Rapids and Foundation show that 6,212 compa- about selling his business. He took about a program there, Jandernoa Todd Folkert needed a mentor, if Ferndale. He felt nies fit the second-stage definition the advice. The student was the said, although he didn’t identify only to have someone to talk to the same way as in the Grand Rapids-Wyoming Met- only member of the class of 2010 those people. who understood what it’s like to Folkert, even ropolitan Statistical Area in 2012 who didn’t graduate in August. Jandernoa wants to stay focused run a growing business. though he has a out of the 53,482 registered busi- on West Michigan. He plans to “You can’t talk to your employ- Jandernoa said he hasn’t had partner in the nesses. Of the 715,703 businesses any problem recruiting mentors take the model of his second-stage ees,” said Folkert, the president business. They registered with the state in 2012, and mentees, but he doesn’t want program and start a new program and owner of Bold Cos., an office both had some- 75,320 were second-stage compa- this to get too big. He would like to for startup companies. furniture manufacturer in one to talk with nies. see nine or 10 students in each of Many of the mentees in the first Muskegon. but still needed Lewandowski said second-stage three classes per year, with a men- class, he said, have volunteered to “I used to try to talk to my wife. someone else. companies accounted for about 13 tor for each mentee. be mentors in that program. She would listen and say, ‘Todd, I “Sometimes, percent of all businesses in Michi- Haviland am a nurse.’ ” we look at each gan but generated almost 35 per- Folkert has that mentor now, other and don’t know what to do,” cent of the jobs and more than 33 thanks to the Jandernoa Entrepre- Haviland said. percent of all sales. neurial Mentoring program. Dave Fenske, another mentee, The development of second-stage Some of the Grand Rapids area’s was running Unisource Office Furni- companies has been high on the Strong. And ﬂexible. top business leaders are going to ture Parts in agenda of the Michigan Economic De- spend the next three years mentor- Grand Rapids as velopment Corp. since Gov. Rick Sny- ing people like Folkert, owners the office furni- der was sworn in to office in 2011. and CEOs of second-stage busi- ture industry “The idea is to look at compa- nesses. The first class of the pro- was going nies that had gone beyond the val- gram graduated in August. Eight through its post- ley of death,” said Vince Nystrom, of the nine “students” graduated, Great Recession vice president of strategic ac- while the ninth sold his business trauma. He had counts for the MEDC. “They have interest to a partner. decided to start revenue, they have customers, and The next graduation ceremony, an import com- they just absolutely go crazy when for a class of nine students or pany to lower they scale the company.” mentees, will be in 2014. Fenske costs. Coinci- Lewandowski said the Jander- The program was founded in dentally, his mentor already had noa Entrepreneurial Mentoring 2010 by Michael Jandernoa, for- When businesses face the changing the demands done that. program “is doing amazing mer CEO of the of growth, purchasing goods, or making payroll, “It was so helpful to have a per- things” with second-stagers be- nation’s largest they require a strong, yet flexible solution. son who can say, ‘Here’s what I cause they like to learn from one manufacturer of Crestmark can help. did,’ ” Fenske said. “There is so another. over-the- much to take in, it can be over- “Their issues are so much more Providing asset-based lending to small- and mid- counter drugs, whelming. If a small-business own- defined and they are so much more sized businesses nationwide for over 17 years. Perrigo Co., at er can avoid making errors in strategic,” she said. “Once they get the time based judgment, it is huge.” to second stage, they learn the best Contact us today! 888.999.8050 in Allegan. Jandernoa began his mission to from somebody who has been The mentors Matt Dekutoski “enhance the entrepreneurial cul- there and done that.” in the Jander- ture in West Michigan” after seeing Sometimes what they learn is Anntreal Hemmingway-Smith noa program Jandernoa what the Samuel Zell & Robert H. not what they expected to hear. have experience Lurie Institute for Entrepreneurial Stud- running businesses with at least $5 ies at the University of Michigan did million in annual revenue. They with its Entrepalooza seminar, make a three-year commitment to which brought together beginning meet at least twice a month the entrepreneurs and billionaires. first year and once a month the Jandernoa investigated busi- second and third years with some- ness and economic development one who has been running a $1 mil- programs in Israel and Ireland be- lion, second-stage business for at fore settling on what he discovered least three years. in Kansas City, Mo. There he “Mentoring is very different found the Helzberg Entrepreneurial from being the boss,” Jandernoa Mentoring Program, started in 1995 said. “When you are the boss, you by Barnett Helzberg Jr., former make decisions. When you are a owner and president of Helzberg Di- mentor, you sit back and ask ques- amonds. tions, get answers, be encourag- Jandernoa sees this mission as ing, try to instill real accountabili- being about more than building ty and offer real suggestions businesses. without telling them what to do.” “I felt if you could help the Paul Boyer, vice chairman of leader in the organization to be- Walker-based Meijer Corp. and one come a better leader and help them of the mentors, become the best they could be, that said this pro- would make a big difference in the gram is not for organization and in the communi- companies try- ty,” he said. ing to return to Second-stage companies “are profitability. the real Clydes- “We’re at- dales when it tracting people comes to pulling into this pro- your economy,” gram that want said Penny to build their Boyer Lewandowski, business, that vice president want to grow,” Boyer said. “These of entrepreneur- are solid businesses.” ship and strate- Board members and staff meet gic direction at with each of the applicants to Lewandowski the Edward Lowe make sure they fit that definition. Foundation in Yet even if they want to get in for Cassopolis. The foundation, which all the right reasons, they might helps those businesses grow, also lack the one attribute that Jander- encourages “a wider understand- noa considers critical. ing” of the importance of second- “They have to have the internal stage companies — which have be- passion that they see they can tween $1 million and $50 million in learn and grow as a leader and annual revenue and employ 10 to 20130916-NEWS--0014-NAT-CCI-CD_-- 9/13/2013 10:23 AM Page 1

Page 14 CRAIN’S DETROIT BUSINESS September 16, 2013

CRAIN'S LIST: LARGEST METRO DETROIT EMPLOYERS Ranked by full-time employees

Company Address Metro Detroit Metro Detroit Worldwide Worldwide Phone; website employees employees employees employees Rank Top local executive July 2013 July 2012 July 2013 July 2012 Type of business Ford Motor Co. Alan Mulally 43,977 39,134 175,000 166,000 Automobile manufacturer 1. 1 American Road, Dearborn 48126 president and CEO (313) 322-3000; www.ford.com

University of Michigan Mary Sue Coleman 29,551 28,525 30,274 29,234 Public university and health system 2. NA, Ann Arbor 48109 president (734) 764-1817; www.umich.edu

Chrysler Group LLC Sergio Marchionne 29,006 25,733 69,096 60,551 Automobile manufacturer 3. 1000 Chrysler Drive, Auburn Hills 48326-2766 chairman and CEO (248) 576-5741; www.chryslergroupllc.com

General Motors Co. Daniel Akerson 26,843 25,813 213,000 209,000 Automobile manufacturer 4. 300 Renaissance Center, Detroit 48265 chairman and CEO (313) 556-5000; www.gm.com

U.S. government NA 18,600 B 19,033 1,845,282 B 1,966,222 Federal government 5. 477 Michigan Ave., Detroit 48226 (313) 226-4910; www.usa.gov

Henry Ford Health System Nancy Schlichting 17,831 18,402 17,989 18,457 Health care system 6. 1 Ford Place, Detroit 48202 CEO (800) 436-7936; www.henryford.com

CHE Trinity Health Larry Warren 14,062 13,826 86,521 54,645 Health care system 7. 20555 Victor Parkway, Livonia 48152 interim chief operating officer (734) 343-1000; www.trinity-health.org Judith Persichilli interim president and CEO Detroit Medical Center Joseph Mullany 13,458 13,499 13,458 13,499 Health care system for adult and pediatric 8. 3990 John R, Detroit 48201 CEO care (313) 578-2442; www.dmc.org

Beaumont Health System Gene Michalski 13,134 12,767 13,134 12,767 Health care system 9. 3711 W. 13 Mile Road, Royal Oak 48073 president and CEO (248) 898-5000; www.beaumont.edu

St. John Providence Health System Jean Meyer 12,002 12,649 12,560 12,310 Health care system 10. 28000 Dequindre Road, Warren 48092 Interim president and CEO (866) 501-3627; www.stjohnprovidence.org

State of Michigan Richard Snyder 9,693 10,226 NA NA State government 11. 3042 W. Grand Blvd., Cadillac Place, Suite 4-400, Detroit 48202 governor (313) 456-4400; www.michigan.gov

U.S. Postal Service Lee Thompson 9,666 10,922 NA NA Postal service 12. 1401 W. Fort St., Detroit 48233-9651 district manager, customer (313) 226-8678; www.usps.gov service and sales

City of Detroit Dave Bing 9,591 10,920 9,591 10,920 City government 13. 2 Woodward Ave., Coleman A. Young Municipal Center, Detroit mayor 48226 (313) 224-3700; www.ci.detroit.mi.us Quicken Loans Inc. Dan Gilbert 9,423 6,349 11,281 8,031 Mortgage banking 14. 1050 Woodward Ave., Detroit 48226 chairman and founder (800) 251-9080; www.quickenloans.com ■ Largest percentage increase

Detroit Public Schools Jack Martin 6,586 7,839 6,586 7,839 Public school system 15. 3011 W. Grand Blvd., Fisher Building, Detroit 48202 emergency manager (313) 873-3111; www.detroitk12.org

Blue Cross Blue Shield of Michigan/ Daniel Loepp 6,502 6,239 7,437 7,085 Health care insurer 16. Blue Care Network president and CEO 600 E. Lafayette Blvd., Detroit 48226 (313) 225-9000; www.bcbsm.com DTE Energy Co. Gerard Anderson 6,213 6,277 9,854 9,895 Energy and energy-technology company 17. 1 Energy Plaza, Detroit 48226 chairman, president and CEO (800) 477-4747; www.dteenergy.com

Oakwood Healthcare Inc. Brian Connolly 6,172 6,167 NA 7,803 Health care system 18. 15500 Lundy Parkway, Dearborn 48126 president and CEO (313) 586-5052; www.oakwood.org

Wayne State University M. Roy Wilson 6,023 5,924 6,023 5,924 Public university 19. 42 W. Warren, Detroit 48202 president (313) 577-2424; www.wayne.edu

Comerica Bank Michael Ritchie 4,814 4,891 8,904 9,132 Financial services provider 20. 411 W. Lafayette, Detroit 48226 Michigan market president (248) 371-5000; www.comerica.com

Johnson Controls - Automotive Experience Beda Bolzenius 4,425 4,039 168,000 162,000 Automotive supplier, building control 49200 Halyard Drive, Plymouth 48170 vice president and president, systems and facilities management (734) 254-5000; www.johnsoncontrols.com automotive seating William Jackson 21. vice president, operations and innovation and president, automotive electronics and interiors Faurecia North America Michael Heneka 4,240 4,100 94,000 84,000 Automotive supplier 22. 2500 Executive Hills Blvd., Auburn Hills 48326 president, North America (248) 409-3500; www.faurecia.com

Wayne County Government Robert Ficano 3,274 3,335 3,274 3,335 County government 23. 500 Griswold Ave., Detroit 48226 county executive (313) 224-0286; www.waynecounty.com

Oakland County L. Brooks Patterson 3,211 3,196 3,211 3,196 Government 24. 1200 N. Telegraph Road, Pontiac 48341 county executive (248) 858-1000; www.oakgov.com

Botsford Health Care Paul LaCasse 3,053 3,008 3,501 3,309 Independent hospital, cancer center, 25. 28050 Grand River Ave., Farmington Hills 48336 president and CEO ambulance company, senior living (248) 471-8000; www.botsford.org community and hospital-owned physician practices

This list of metro Detroit employers encompasses companies with locations in Livingston, Oakland, Wayne, Washtenaw or Macomb counties. Number of full-time employees may include full-time equivalents. 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 Detroit-area office. Actual figures may vary. NA = not available. B As of March 31, 2013. LIST RESEARCHED BY BRIANNA REILLY 20130916-NEWS--0015-NAT-CCI-CD_-- 9/13/2013 11:26 AM Page 1

September 16, 2013 CRAIN’S DETROIT BUSINESS Page 15 Lust for lists: Traverse City tourism Need a group works for national spotlight New Bank?

BY ROD KACKLEY Traverse City on its list of the “10 the can’t-miss beaches list. SPECIAL TO CRAIN’S DETROIT BUSINESS Most Adventurous Honeymoons.” That came as a pleasant surprise Although vying for placement to Marci Cisneros, executive direc- The Traverse City Convention & Visi- on these “best of” lists is not part tor of the Grand Haven Area Conven- tors Bureau has added — thanks to of his overall strategy, Norton tion & Visitors Bureau. the sands of Sleeping Bear Dunes Na- said, “The effort we expend is to Cisneros said that when the bu- tional Lakeshore and CNN — one more bring visitors to Traverse City and reau finds out about a media outlet “best of” list to the home page of its to tell that story in any medium we putting together a list that would be website, which already mentions at can get into.” Being part of a best- good for Grand Haven, it uses so- least 50 such awards for the region. of list, he said, “is just a happy cial media — primarily Facebook — In some cases, placement on byproduct of us doing our job, day to urge people to vote. Cisneros these lists is the result of travel in and day out — and the fact that said she also lines up social media journalism and original reporting. this is Traverse City.” support from other members of the Others, thanks to the tools of social The bureau currently is involved tourism industry, setting up links media, are the result of online in a campaign urging people to vote to and from their Facebook pages. reader or fan comments and votes. for Sleeping Bear Dunes in Virtual- “It is a team effort within the in- The Traverse City bureau does- Tourist.com’s “8th Wonder of the dustry and within the social net- n’t devote money to getting on Let ours compete for World” contest. work realms,” Cisneros said. these lists, said Michael Norton, “We just found out about it and Even with that kind of team- the bureau’s media relations direc- said, ‘Well, there’s an opportunity to work, she said, a network of fol- your business. tor. It does, however, expend effort jump aboard and see if we can make lowers has to be in place before a to persuade travel journalists to Loan amounts: $1,000,000.00 and above. lightning strike twice in the same social media campaign can be consider the region. s Investment Real Estate s Accounts Receivable place,’ ” Norton said. waged. She said it can take months Those that rank highest on these s Owner Occupied Real Estate s Equipment If Sleeping Bear — two years re- or even years to collect a good lists spend time finding the best number of “authentic followers.” s Lines of Credit s Bank Workouts lists, then either rally supporters moved from being named “The Most Beautiful Place in America” Dianna Stampfler, president of to the cause, if votes are being ac- Promote Michigan, agreed that it’s cepted, or invite reporters and edi- by ABC’s “Good Morning America” — becomes the “8th Wonder,” Nor- necessary to build a network of ded- tors to visit to see for themselves. icated fans who are not just follow- As for the latest addition for the ton said, the visitors bureau will get a little free advertising to supple- ers but true believers. Traverse City area, a CNN Michigan ment its ad budget, which increased Stampfler is using the writer/producer who researched Brewers Guild’s social media fan best beaches for an end-of-summer to more than $3 million in 2012. The 800.509.3552 additional money came from an in- base — more than 7,000 followers vacation listed no beaches in Michi- on Twitter and more than 10,000 on www.eclipsecapitalgroup.com gan on the original list of her 22 fa- crease in the tax on hotel rooms in 2207 Orchard Lake Road, West Bloomﬁeld, MI 48320 Grand Traverse County — to 5 per- Facebook — in a contest to win a vorites. But readers, many of them free Super Bowl TV commercial. “Since 1997” fans of the Lake Michigan shore- cent from 2 percent — approved by members of the bureau in 2011. “They will do whatever you ask, line, told her how mistaken she was and their friends will do whatever While Norton will put a button and offered their own nominations. they ask, because there is a family on the website to make sure Tra- And so Sleeping Bear Dunes culture in the beer world. It’s un- verse City followers know about made the network’s “20 More like anything I have ever seen,” she these contests, he doesn’t use the Can’t-Miss Beaches” list. said. bureau’s mailing lists for email Some of the media awards for Stampfler said it is important to blasts to encourage voting. Traverse City and Grand Traverse be on the Internet to watch for con- fancy? County have come from travel When journalists research loca- tests and lists being generated by what’s your journalism publications such as tions for lists that are driven by ed- different media outlets. She also Midwest Living, which listed Tra- itorial departments instead of on- recommends correcting a media The design team turned to precast verse City as one of its “25 Coolest line voting, Norton invites the outlet when a business or commu- when searching for an energy Midwest Vacation Spots” in July reporters to Traverse City. nity is left off a list because editors 2012 and placed it first on the mag- “These lists don’t just rain down often will make a correction or put efficient structural system with the azine’s “Midwest’s Five Top Food on us like manna from heaven,” out a new list — as CNN did. ability to be installed quickly. Edge Norton said. “You have to be in Towns” in 2009 and 2010. “Watch a ‘best of craft beer’ story to edge insulation in the precast Others have come from websites this for the long haul.” show up and not include Grand such as theknot.com, which adver- About three hours south of Tra- Rapids,” Stampfler said. “Everyone wall panels helped provide the tises itself as being “the Internet’s verse City along the Lake Michigan in Grand Rapids will share that on ultimate in energy efficiency for most trafficked, one-stop wedding shoreline sits the Grand Haven City their Facebook pages with a ‘WTH’ planning solution.” The Knot put Beach, which also found a place on message, which directs all the oth- the store. er craft beer people to head to the main story and post comments about how stupid their writer is for Changing the odds not including Beer City USA.” However, Kendra Williams, senior travel editor at Midwest Living in our clients’ favor magazine, said she is not influ- enced by coordinated email campaigns pushing her to cover one business, one city or one region. Williams said Traverse City won the awards from her publication because she and her writers believed Traverse City deserved the awards, not because of a social media campaign. Nicole Campoy, the blog editor for Fodor’s Travel, also relies on her network of reporters rather than social media. Her publication named Traverse City one of the “5 Midwest- ern Small Towns to Visit Now” in Securities fraud and shareholder rights August and one of the “10 Best Small Automotive supplier disputes Shareholder and partnership disputes Towns in America” in March.

Commercial and business lawsuits Family law and probate litigation “We have writers all over the www.kerkstra.com country,” Campoy said. “They become aware of these cities just by 248-841-2200 being local. If they say it is some- KERKSTRA PRECAST millerlawpc.com thing we should pay attention to, Family Fare at Metro Health Village Campus - Wyoming, MI we do.” 20130916-NEWS--0016-NAT-CCI-CD_-- 9/13/2013 11:10 AM Page 1

Page 16 CRAIN’S DETROIT BUSINESS September 16, 2013 TriMas’ course of outgrowing debt raises questions

BY CHAD HALCOM pal. Total debt shares in mid-2012 at $20.75 per TriMas manufacturing capacity Craig Sterling, managing director CRAIN’S DETROIT BUSINESS was $496.4 mil- share raised $83 million for what and global footprint. and head of global equity research lion at midyear, the company had said was for gen- The company has been expand- at Eva Dimensions LLC, downgraded Is outgrowing the company debt and has wavered eral purposes — which could in- ing Martinic as a division of its TriMas to a sell recommendation load a sustainable trend for Bloom- between $430 clude paying down debt, working Monogram Aerospace Fasteners at a earlier this year, against the consen- field Hills-based TriMas Corp.? million and $524 capital or funding acquisitions. In rate of 10 percent to 20 percent, sus of most other analysts. He said Investors have remained steadily million since this case, Wathen said, it was most- Wathen said, and it expects to do the company may have achieved bullish about the diversified manu- late 2009 — while ly spent on acquisitions, building more aerospace supplier business about as much asset efficiency as it facturer of engineered aerospace, revenue and in- TriMas revenue and income be- soon as a maker of titanium com- can and he is concerned that the re- energy, packaging, trailer and oth- come have cause many of the new assets were ponents for the Commercial Aircraft cent growth is not always as benefi- er component products, which has Wathen climbed about 50 already profitable. The company Corp. of China Ltd., or Comac, a gov- cial as it could be. traded between $35 and $37 over the percent over the could try to close one or two larger ernment-owned commercial aero- “That’s clearly been a strategy past two weeks and briefly crested same period, through organic acquisition deals in the next sever- space company launched in 2008 of theirs, and there’s nothing $40 in July, a new record. growth and acquisitions. al months, he said. that is in the design phase on two wrong with that. You can give up That’s compared with $25.45 in TriMas’ EBITDA was more than “It’s no secret that we’ve been on commercial airline models. margin for growth, but what mid-July 2011, which was then $192 million in 2012 and is on pace to the hunt, especially in aerospace The company’s Lamons energy they’re giving up in margin is, in- record share price territory for Tri- exceed $200 million on revenue of and in packaging,” he said. “There business also expects to see some crementally, not adding the same Mas since its 2007 IPO, about $3.45 $1.3 billion this year, compared with are a lot of companies we find in the growth as a supplier to Petroleos value. (The growth) is starting not two years in mid-July 2009, and just $803 million in 2009. Wathen said a market where the current owners Mexicanos, or Pemex, the state- to outpace the margin they’re giv- more than $1 in early 2009, just af- peer group of manufacturers like have grown it to the level where owned Mexican petroleum compa- ing up,” he said. ter the global market downturn. TriMas generally carry debt loads they’re comfortable with it and ny that is negotiating a $780 million Wathen said the company has Investment and asset manage- between 1.5 to 2 times EBITDA. haven’t got the capital or haven’t investment from Mexico’s finance felt pressure from customers to ex- ment firms William Blair & Co. and One boost to the balance sheet tried to invest in more capacity, or ministry to increase natural gas pand production capacity and new BlackRock Inc., which own 5.9 mil- came in late 2012, Wathen said, sought out new lines of business.” production by 1 billion cubic feet plant locations, but he said the mix lion or almost 15 percent of TriMas when the company refinanced $200 Other acquisitions this year per day by the end of next year. of customers it serves gives it shares between them, together million worth of bonded debt at a have included Stanton, Calif.-based In Michigan, a renovation/- some insulation from any single- picked up 230,000 more this sum- rate of 9.75 percent that was due in Martinic Engineering Inc., for $19 mil- expansion of the Cequent Perfor- industry downturn. mer. Analyst consensus is still 2017, with more conventional term lion in January, Wulfrun Specialised mance Products Inc. headquarters “In aircraft, especially, the lead strong, according to data from loans at less than 5 percent. Fasteners Ltd. for about $9.6 million in Plymouth Township allowed time on orders before production Bloomberg LP, although two research “That not only helps with in- in March, and the assets of Tat Lee employees to move into the expan- can be several years and is less firms have downgraded recommen- vestor confidence to see us exiting Ltd. in late April, for an undisclosed sion space in late August. Cequent likely to change, due to the com- dations in the past six months. from bonds, it also immediately amount. employs about 250 there, and Wa- plexity of design in the industry,” Company CEO David Wathen adds to earnings and creates in- Total employment is about 5,500 then said that growth is driven he said. “And in terms of adding notes that total debt is about 2.5 come,” he said. worldwide, with about 325 employ- partly by consolidation and some capacity, we’ve protected our- times EBITDA right now, com- The company has closed on six ees in Michigan, including a global European business it has picked selves by trying to slightly follow pared with about six times EBIT- acquisitions this year, most re- workforce of 3,900 2½ years ago. up from the Al-Ko business and the trend in customer demand, DA in 2007. cently a German and Finnish tow- Wathen said customers are en- from the April acquisition of rather than get out ahead of it.” But the company has changed bar business from Al-Ko SE, in a couraging the company to follow Wales-based C.P. Witter Ltd., which Chad Halcom: (313) 446-6796, that ratio more by growing in size deal that closed July 19. them into new products and geo- makes towbars and cargo manage- [email protected]. Twitter: than by slashing into loan princi- A new issuance of 4 million graphic markets, which has grown ment products, in April. @chadhalcom

JCI’s auto parts unit plans new sites in China

Johnson Controls Inc.’s auto parts unit plans to open 11 new manufacturing sites in China during the next few years to handle ex- PROUD TO BE IN pected growth. The company’s Plymouth-based Automotive Experience unit, which makes seats, electronics and interiors, now has 57 sites in China. The company said in a statement last week that the expansion comes after 16 years of continuous growth. “We are focusing on innovative complete interior solutions in Chi- na that anticipate market needs DETROITWhen you’re serious about intellectual property law … and meet customer expectations in terms of differentiation, comfort, Use Brinks, now in Detroit. Brinks is a recognized national leader in safety and sustainability,” Jo- hannes Roters, the company’s Chi- intellectual property law. With its new Detroit Office located in the same na general manager, said in a building as a U.S. Patent and Trademark Office, domestic statement. The Automotive Experience and international clients can participate in on-site patent unit had sales in China of $4.6 bil- examination and administrative trial proceedings. lion last year. It employs about 25,000 people in the country, including its joint ventures. The Serving innovators in Michigan and beyond: company has been in China since 1997. It also has 10 engineering Detroit Ofﬁ ce Ann Arbor Ofﬁ ce sites in eight cities that employ U.S. Patent Suite 1775 Suite 200 No. 129,843 more than 1,150 engineers. Steam engine 300 River Place Drive 524 South Main Street Detroit, MI 48207 Ann Arbor, MI 48104 Customers include all major in- lubricator by ternational and national automak- Detroit inventor 313.393.5400 734.302.6000 Elijah J. McCoy, ers that sell vehicles in China, the granted in 1872. Chicago | Ann Arbor | Detroit | Indianapolis | Research Triangle Park Area | Salt Lake City | Washington, DC | www.brinkshofer.com company said. — Associated Press 20130916-NEWS--0017-NAT-CCI-CD_-- 9/13/2013 10:26 AM Page 1

September 16, 2013 CRAIN’S DETROIT BUSINESS Page 17 Tour de Troit growth cycles into Expand Your sweet ride for bike shop owners Marketplace BY AMY HAIMERL Karen Gage (left) CRAIN’S DETROIT BUSINESS and Kelli Kavanaugh When the 12th annual Tour de started Troit bicycle ride takes off on Sept. Wheelhouse -ICHIGANS)NTERNATIONAL-ARKETING 21, an estimated 6,000 riders will Detroit in 2008 pedal the 30-mile course. That’s a with $30,000. 0ROGRAMOFFERSPROGRAMSANDSERVICES far cry from the first ride in 2002, They expect when just 50 riders turned out. revenue of TOASSISTFOODANDAGRICULTUREPRODUCERS Attendance is not all that has $180,000 this grown. Wheelhouse Detroit, a bike year. PROCESSORS ANDPACKAGERSTOEXPORT shop on the Detroit riverfront, was ANDREW TEMPLETON/CDB founded thanks to the event. the rise,” said Gage, 37. “When we They got a lucky break when they YOURPRODUCTS EXPANDEXISTINGMARKETS Wheelhouse owners Kelli Ka- were doing our business planning, contacted the Detroit RiverFront Con- ENTERNEWMARKETS ANDACHIEVE vanaugh and Karen Gage, friends we noticed there weren’t any type servancy to find out if there were from high school, were working in of services or bike repair in the any plans for bike rental or repair ECONOMICGROWTH community development in De- greater metro area.” at the newly opened Rivard Plaza. troit when they heard about the “We were tired of having to go The conservancy didn’t have any, Tour de Troit. Avid bicyclists, out to the suburbs to fix our so Gage and Kavanaugh asked to they decided to volunteer in 2005. bikes,” added Kavanaugh, 37. submit a business plan. They watched attendance jump “That was our light-bulb moment. The conservancy saw their vi- from 200 that year to nearly 1,000 Bikes. And we thought, ‘Maybe sion and agreed to have them open in 2007, when they started getting that’s what we should do.’ ” at Atwater and Rivard streets. serious about opening a business. The timing was terrible in terms They started in 2008 with just “The growth in the tour raised a of the economy, but perfect in $30,000 — their own capital com- flag that the biking culture was on terms of meeting a Detroit need. bined with a loan from the Detroit Micro Enterprise Fund — and have Our services since seen revenue grow steadily. Wheelhouse has already exceed- include: ed its 2012 revenue and expects to reach $180,000 for 2013. It employs 10 people, plus a dozen contract em- s %XPORTEDUCATION ployees who lead bike tours. “The visible growth of urban cy- s "UYERCONNECTIONSANDTRADELEADS cling is phenomenal,” Kavanaugh said. “And not just in Detroit. This s 4RANSPORTATIONANDLOGISTICSADVICE is an international thing. People ANDREFERRALS SPEED are looking at bikes as a commut- ing tool, not just a toy. It’s not just s %XPORTCOSTREIMBURSEMENTPROGRAM for people on $3,000 carbon fiber s %XPORTDOCUMENTATIONAND frames who are racing.” The Wheelhouse owners continue PROGRAMGUIDANCE to be involved in planning the tour, s )NTRODUCTIONSTOINTERNATIONALBUYERS with Gage volunteering and Ka- LIMIT vanaugh acting as co-director with Vittoria Katanski (also of Hatch De- troit). That’s a big change from the early years when tour founders Ed- ward Potas and Mike Kiewicz planned the event in a bar. Now, the tour is an official 501(c)3 with a board of directors that has raised nearly $160,000 to support greenway projects and planning, including more than 17 miles of bike lanes. Current board Chairman Bil Lusa actually stumbled across the tour during one of those early planning sessions at LJ’s Lounge on 186,232 Michigan Avenue. MILES PER SECOND “I started helping out and decided to ride it,” said Lusa, founder and Expand your export horizons today president of electrical engineering consulting firm Wireless Approval by contacting: Consultants. “I’d moved to Detroit about a year before that and was OUR ONLY LIMIT IS still in the process of meeting people. … Let’s just say cycling wasn’t as popular as it is now. If you saw THE SPEED OF LIGHT someone on a bike, you generally knew them. So the tour was nice be- International Marketing Program cause I could link up with people FIBER TO YOUR BUSINESS | DATA CENTERS with the same interests.” This year’s tour will be on a www.michigan.gov/agexport FIXED METRO WIRELESS | MPLS | SIP | PRI closed course, starting at Michigan Central Station and circling (517) 284.5738 through southwest Detroit, Wood- bridge, Milwaukee Junction, Indian Village, Belle Isle, Lafayette Park, the Packard Plant and downtown. To sign up for the Tour de Troit MiAgExport MiAgExport or for more information, visit tour- de-troit.org. www.123.net | 866.603.4774 Amy Haimerl: (313) 446-0402, [email protected]. Twitter: @haimerlad 20130916-NEWS--0018-NAT-CCI-CD_-- 9/13/2013 11:42 AM Page 1

Page 18 CRAIN’S DETROIT BUSINESS September 16, 2013

CALENDAR

WEDNESDAY JOIN CRAIN’S HOUSE PARTY SEPT. 18 Gain an insider’s perspective on Michigan Retailers Breakfast. 7:30- Detroit’s history, current 11:30 a.m. Michigan Retail Committee, renaissance and future from 4-10 International Council of Shopping p.m. Sept. 26 at the seventh Centers. With Oakland County Execu- annual Crain’s Detroit House Party, tive L. Brooks Patterson, Macomb County Executive Mark Hackel a collaboration between Crain’s and panelists Brian Lassaline, manag- Detroit Business and the Michigan Year-round exposure. er, concessions and quality assurance, State Housing Development Wayne County Airport Authority; Linda Authority. McIntosh, marketing director, Somer- Choose from six tours that include set Collection/corporate director of an overview of the people, places High-quality leads. communications, Forbes Co.; and and neighborhoods that make up Maggie Sweeney, retail promotions Detroit’s core, including the east manager, Olympia Entertainment/ Detroit Red Wings. Townsend Hotel, side, Lafayette Park, Corktown, Birmingham. $55 members in Woodbridge, Midtown and Exclusive content. advance, $70 at the door; $70 downtown. Tours leave from Cobo nonmembers in advance, $85 at the Center. door. Contact: Michael Stozicki, Tickets are $60 for Crain’s (248) 674-4991, ext. 540; email: subscribers, $85 for a ticket and a [email protected]; website: one-year Crain’s subscription, $99 www.icsc.org/2013B09. for nonsubscribers and $55 for guests in groups of 10 or more. THURSDAY For more information, call Kacey Anderson, (313) 446-0300, or visit SEPT. 19 www.crainsdetroit.com/events, Here Comes Health Care Reform – where you can also preview tours. Ready or Not. 8 a.m.-3:30 p.m. Michi- Join the conversation on Twitter gan Purchasers Health Alliance. With with #cdbhouseparty. Cheryl Larson, vice president, Mid- west Business Group on Health; Sue Mathiesen, director of technical considerations. Spark East, Ypsilanti. Stake your claim: research, McGraw Wentworth; Scott $25. Contact: Alissa Carpenter, (734) Foster, president, Wellco Corp.; 372-4071; email: alissa@annarborusa For exclusive ad placement, contact Marla Wise and Cecily Hall, former director of .org; website: www.annarborusa.org. benefits, Microsoft. Morris Lawrence at 313-446-6032 or email [email protected]. Building, Ann Arbor. $45 members, $100 nonmembers. Contact: Marilyn UPCOMING EVENTS Bell, (269) 668-4149; email: [email protected]; website: Detroit Economic Club Meeting. 11:30 ISSUE DATE: December 30 | CLOSE DATE: October 31 www.michpha.org. a.m.-1:30 p.m. Sept. 23. With David Cote, chairman and CEO, Honeywell International Inc. Cote will discuss Reinvention and Remaining Relevant. America’s competitiveness agenda. 10:30 a.m.-1 p.m. Troy Chamber of Cobo Center, Detroit. $45 DEC mem- Commerce. With Rodney O’Neal, pres- bers, $55 guests of members, ident and CEO, Delphi Automotive. $75 nonmembers. Preregistration Learn how O’Neal restructured one of required. Contact: (313) 963-8547; the world’s largest automotive suppli- email: [email protected]; website: ers. San Marino Club, Troy. $27 Troy www.econclub.org. Chamber members in advance, $32 day of event; $37 nonmembers in advance, $42 day of event. Contact: Jaimi Which Technology Gives Media Lead- Brook, (248) 641-0031; email: ers the Edge? 6-8 p.m. Sept. 24. Asso- [email protected]; website: ciation for Women in Communica- tions. Media professionals debate www.troychamber.com/cal. technology, shrinking ownership of FREE SPONSORED WEBINARS HOSTED BY: news outlets and the outlook for jobs. With Jennifer Kluge, publisher of FRIDAY Corp! magazine; Mary Kramer, group SEPT. 20 publisher, Crain’s Detroit Business; and Marjorie Sorge, executive director Register at www.crainsdetroit.com/webinars Starting Your Own Business. 9 a.m.-4 and chief blogger, Detroit Regional p.m. Ann Arbor Spark. Learn about News Hub. Crain Communications personality traits that impact entre- Inc., Detroit. $28 AWC members, $30 preneurialism; creating a marketing nonmembers, $25 full-time students. Sept. 18 Sept. 19 Sept. 26 plan for a business; product develop- Contact: Deniella Ortiz-Lalain, (248) Noon– 1 p.m. Noon– 1 p.m. Noon– 1 p.m. ment; business plans; financing op- 835-3636; email: [email protected]; tions; and legal, accounting, and risk website: www.womcomdetroit.org.

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September 16, 2013 CRAIN’S DETROIT BUSINESS Page 19

BUSINESS DIARY

ACQUISITIONS awarded contracts valued at approxi- Mich., a gifting and promotions tech- mately $25 million from Textron Ma- nology company. Websites: www.bro Dayco Products LLC, Tulsa, Okla., a rine & Land Systems. Slidell, La., to gan.com, www.conpoto.com. global producer of engine drive sys- produce its 4000 and 5000 series plane- tems, accessory drive systems and Innovative Learning Group Inc., Royal tary independent suspension axle sys- crankshaft dampening systems, ac- Oak, was awarded a project to create tems for the Canadian Tactical Ar- quired Metavation LLC, Southfield, a training and performance support for mored Patrol Vehicle program and manufacturer of crankshaft damper Detroit-based United Way for South- the Afghan National Army. Website: pulleys. Website: www.dayco.com. eastern Michigan’s Community Care www.axletech.com. Advocate program. Websites: CONTRACTS Brogan & Partners Advertising Consul- www.innovativelg.com, www.liveu tancy Inc., Birmingham, was named nitedsem.org. AxleTech International LLC, Troy, was lead agency for Conpoto LLC, Holland, MSX International Inc., Warren, signed a contract with Logi-Serve LLC, Farmington Hills, employee-assessment specialists, to create a testing tool to help dealer networks with their Work smarter for your business. sales and service goals. Websites: www.msxi.com, www.logi-serve.com. DBA Worldwide, Rochester, was selected as the agency of record to develop a marketing strategy for Valley Health Plan, owned and operated by Santa Clara County, Calif., Website: www.dbaworldwide.com. Vari-Form, Troy, signed an agreement with EMARC SpA, Piemonte, Italy, for Vari-Form to establish a manufacturing presence in Europe, focusing on growing its hydroforming business; EMARC will locate a manufacturing operation in North America, expanding its roll forming and stretch bend- ing business for steel and aluminum components for automotive and commercial vehicle industries. Websites: www.vari-form.com, www.emarc.it. Size, comfort, value and versatility that drives your potential. General Dynamics Land Systems, Ster- The 2013 Sprinter Van — exclusively at Mercedes-Benz of Novi. Visit us today to ling Heights, was awarded a $118 mil- see one of the area’s largest Sprinter inventories. lion contract by the U.S. Army Tacom Life Cycle Management Command, Mercedes-Benz of Novi Warren, to convert 66 flat-bottom 39500 Grand River Ave. Stryker infantry combat vehicles to a Novi, MI 48375 double-V hull design. Deliveries of the 248-426-9600 (Sales & Service Available Now) vehicles will begin in July 2014 and be www.mercedesbenzofnovi.com completed by February 2015. Website: www.gdls.com. EXPANSIONS Computing Source, Southfield, a digi- The verdict is in: tal evidence and legal support firm, opened an office at 20 N. Clark St., Suite 1230, Chicago. Website: www.computingsource.com. Attorneys Halla Visteon Climate Control Corp., a subsidiary of Visteon Corp., Van Bu- Named Michigan ren Township, started manufacturing operations in Togliatti, Russia. The new Halla Visteon Rus LLC is assem- Super Lawyers bling cooling modules and heating, ventilation and air conditioning units and Rising Stars for automakers in Russia. Website: www.hvccglobal.com. Schwartz Investment Counsel Inc., Michigan Super LawyersL yers Bloomfield Township, the Ave Maria Mutual Funds’ investment adviser, t+PIO&#FOLP t4UFQIFO.(SPTT opened a branch office at 801 W. Ann Arbor Trail, Suite 244, Plymouth. t+BNFT+#PVUSPVT ** t.JDIBFM(-BUJõ Telephone: (734) 455-7777. Website: t+BNFT+(JT[D[BL t5JNPUIZ+-PXF www.schwartzinvest.com. t+FõSFZ4(SBTM t.JSJBN-3PTFO NEW PRODUCTS RouteOne LLC, Farmington Hills, a Michigan Rising Stars Web-based credit application management system for dealers and finance t%POBME70SMBOEPOJ t%PNJOJD"1BMV[[J sources, launched FinanceConnect, a digital consumer credit application Congratulations to our colleagues who for automotive dealers. Website: www.routeone.com. have earned this distinction. GreenLancer.com, Detroit, a Web- based solar energy technology company, launched Assembly Line, an online source for solar engineering project documents. Website: www.greenlancer.com.

DIARY GUIDELINES Send news releases for Business Diary to Departments, Crain’s McDonald Hopkins PLC Detroit Business, 1155 Gratiot 39533 Woodward Avenue, Suite 318, Bloomﬁeld Hills, MI 48304 Ave., Detroit, MI 48207-2997 or send email to cdbdepartments@ 248.646.5070 crain.com. Use any Business Diary Stephen M. Gross, Detroit Managing Member item as a model for your release, and look for the appropriate category. Without complete $IJDBHPt$MFWFMBOEt$PMVNCVTt%FUrPJUt.JBNJtWest Palm Beach information, your item will not run. Photos are welcome, but we cannot mcdonaldhopkins.com Carl J. Grassi, President guarantee they will be used. 20130916-NEWS--0020-NAT-CCI-CD_-- 9/13/2013 10:29 AM Page 1

Page 20 CRAIN’S DETROIT BUSINESS September 16, 2013 SBA PREFERRED LENDER | CREDIT CARDS | CASH MANAGEMENT | COMMERCIAL LOANS PEOPLE

COMMUNICATIONS Don McCain to senior vice president and head of loan review, Flagstar John Dwyer to director of sales, nation- PEOPLE SPOTLIGHT Bank, Troy, from director commercial al accounts, BullsEye Telecom Inc., Leo Burnett Detroit, Troy, has loan review, Ally Financial Inc., De- $35,000 in Southfield, from regional sales man- troit. ager, Comcast Corp., Ann Arbor. named Steve Chavez its first chief creative officer. fraudulent checks DISTRIBUTION He had been HEALTH CARE global Annette Marcath to vice president, in- executive formation technology and chief infor- creative mation officer, Health Alliance Plan, prevented in one day director. Detroit, from associate vice president, Chavez, 52, business integration. earned a ...by one customer. bachelor’s NONPROFITS degree in Maj. Russ Sjogren to divisional secre- advertising, tary for administration, Salvation Chavez business and Army Eastern Michigan Divisional Your hometown English from Headquarters, Southfield, from com- California State University, mander, Salvation Army, Lake Coun- Herbert Simon Fullerton. ty Indiana Metropolitan Division. Also, Maj. Jan Sjogren to divisional advantage. Edwin Herbert to executive vice presi- school psychologist, Walled Lake Con- secretary for vision and strategic dent, general counsel and secretary, solidated Schools, Walled Lake. planning, from corps officer, Salva- Atlas Oil Co., Taylor, from vice presi- Malcolm Cutchin tion Army, Hammond-Munster, Indi- ana and Maj. Mary Ellen Wilson to dent, general counsel and secretary, to professor and community cares ministries secretary Asset Acceptance Capital Corp., War- chairman of the and older adult ministries director, ren. Also, Faiz Simon to vice president department of from administrator, the Salvation of real estate, from director of real es- health care sci- Army Denby Center for Women and tate, and Michael Ruehring to vice ences, Eugene Ap- Being local means we’re able to help keep a closer eye on your small president, transportation, from senior Children, Detroit. business. It means providing banking tools like Positive Pay, which uses plebaum College director of performance excellence, of Pharmacy and Envoys Artee Lewis and Esther Lewis a secure veriﬁ cation process to protect your accounts against ACH BAE Systems Inc., Rockville, Md. Health Sciences, to administrators, Salvation Army and check fraud. Trust us, that’s a big advantage for small business. Wayne State Uni- Temple Corps, Detroit, from adminis- EDUCATION versity, Detroit, trators, the Salvation Army Harbor Light Corps, Detroit. Try it on us – we'll waive Positive Pay fees for three months. Melissa Michael- from professor, Contact Kerri Werschky at 586-863-9485 to learn more. son to K-8 princi- Cutchin division of occu- Envoys Terry Gaster and Margaret pal, Hillel Day pational science Gaster to administrators, the Salva- www.thefsb.com/cashmanagement | 866-372-1275 School of Metro- and occupational therapy in the tion Army Harbor Light Corps, Detroit, from administrators, the Salvation politan Detroit, School of Medicine, University of Army Grandale Corps, Detroit. Farmington North Carolina at Chapel Hill. Hills, from K-4 Capt. Peter Mount to officer, Salvation division head. FINANCE Army Royal Oak Corps, from Salvation Army Ray & Joan Kroc Center, Grand Also, Jennifer Tom Peck to principal and director of Lerner Friedman Rapids. Also, Capt. Catherine Mount valuation services, Rehmann Finan- to officer, from officer, Salvation to dean of stu- , Farmington Hills, from manag- cial Army Ray & Joan Kroc Center, Grand dent learning, ing director, Duff & Phelps Corp., Rapids. Michaelson from certified Novi. Capt. Brian Reed to officer, Salvation Army Downriver Corps, Wyandotte, from officer, Salvation Army Mount Pleasant Corps., Mount Pleasant. Also, Capt. Heidi Reed to officer, from officer, Salvation Army Mount Pleas- ant Corps. Lt. Lorna Cossey to administrator, Sal- vation Army Grandale Corps, Detroit, from assistant corps officer, Salvation Army Blue Island Corps, Illinois. Also, Lt. Lennard Cosey to administrator, from Salvation Army Officer M&A Experience Training School, Chicago. Lieutenants Tim Perkins and Julie Perkins to administrators, the Salva- ® tion Army Livingston County Corps, In Your Corner. Howell, from Salvation Army Officer Training School, Chicago. REAL ESTATE ■ Mergers and acquisitions, private equity, angel and Beth Fry to IT spe- venture capital, fi nance, and joint venture transactions cialist, NAI/Farb- ■ Commercial transactions, corporate structuring man/Farbman Group, Southfield, and succession planning from IT help desk ■ Real estate transactions, tax planning matters, specialist, Michi- gan Consulting and 1031 exchange transactions Group, Pontiac. SERVICES Mari Jo Dreshar to Fry senior talent acquisition specialist, OpTech LLC, Troy, from senior CELEBRATING technical recruiter, Genesis10, Troy. 12 YEARS 5 PEOPLE GUIDELINES Announcements are limited to management positions. Send submissions to Departments, Crain’s Detroit Business, 1155 Gratiot Ave., Detroit, MI 48207- 2997, or send email to [email protected]. Releases must contain the person’s name, new title, company, city in First Tier Ranking which the person will work, former in Corporate Law and title, former company (if not Commercial Litigation Pete Roth promoted from within) and former [email protected] ■ Metro Detroit ■ Grand Rapids ■ Kalamazoo ■ Grand Haven ■ Lansing city in which the person worked. Photos are welcome, but we cannot guarantee they will be used. 20130916-NEWS--0021-NAT-CCI-CD_-- 9/13/2013 5:25 PM Page 1

September 16, 2013 CRAIN’S DETROIT BUSINESS Page 21 Building: Pending 4 retail, restaurant projects underway near Oakland Mall

BY NATHAN SKID opment firm Area Properties Inc., also deals show demand CRAIN’S DETROIT BUSINESS said he has noticed an increase in commercial development in that particular ■ From Page 3 Four construction projects are un- area. Area is the developer of both the streets, for $4 million more than the investment in it re- derway near Oakland Mall at the inter- Jersey Mike’s/Chipotle space and the flects a high level of investor demand that has been ab- section of John R and 14 Mile roads, a building adjacent to it that is being NATHAN SKID/CDB sent in recent history. sign of pent-up demand for new offer- built on a speculative basis. ings in the retail corridor that strad- Jersey Mike’s is under construction off 14 “Demand is up tremendously right now,” he said. Mile Road near John R. “I think retailers are looking to be “And people are willing to take risks on buildings that dles Madison Heights and Troy. more aggressive,” Rea said. “And I think they wouldn’t have taken in the past.” The projects are planned with a mix Developers said there is 2,500 square that has to do with them having a more The fact that both buildings are Class C also demon- of retail and restaurant tenants, and are feet of space on the southern end of the positive outlook on economy in general.” strates the high demand in the Detroit market, said Sam all within a quarter mile of each other. development still available. Chris Brochert, partner at Bloom- Munaco, president of Southfield-based Advocate Commer- A Starbucks coffee shop and Qdoba Another stand-alone building, at 321 field Hills-based Lormax Stern Develop- cial Real Estate Advisors of Michigan LLC. Mexican Grill are being built off 14 Mile W. 14 Mile, is under construction next to ment Co., said that stretch of road has “The overall market is as active as I’ve ever seen it,” near the mall. The quick-service restau- Grand Azteca. Construction workers on always been a hotbed of retail activity. he said. rant and coffee house is being built by the site said it will be a mattress store. “It’s an area that is heavily traveled, On the prices Uralli’s buildings commanded, DeBono Chicago-based Urban Retail Properties Jim Schafer, community develop- has a major regional mall nearby and a quipped: “And he should be sure to send a thank-you and is expected to open this fall. ment director for Madison Heights, said lot of ancillary retail space around it,” note to Mr. Gilbert,” alluding to the increased value of To the south and east, a 4,000 square- a company called Madison Fourteen LLC is Brochert said. Detroit real estate created by the recent buying spree by foot non-restaurant retail development listed as the property owner and devel- Jim Bieri, president of Detroit-based Quicken Loans Inc. founder and Chairman Dan Gilbert. and a 6,500 square-foot multiunit retail oper. A call to affiliated Saperstein Associ- Stokas-Bieri Real Estate, said retailers But it was more than just a stroke of luck caused by a center that will house a Jersey Mike’s ates went to an answering machine. have always done well in that geo- billionaire’s 30-plus real estate investments downtown. Subs and a Chipotle Mexican Grill are un- Schafer said the area was ripe for de- graphic area. A.J. Weiner, executive vice president of office brokerage der construction off 14 Mile near the velopment. “So it’s not new, its just that there in the Detroit office of Jones Lang LaSalle, also credited Ural- John R intersection. “I think it’s safe to say the southeast hasn’t been any new development in li for picking the right time to buy and sell the buildings. Construction on the site will be com- corner of John R and 14 Mile was pretty that area,” Bieri said. “When he bought those buildings, there was certainly pleted by the end of September, mean- old,” he said. “With the economy turn- Bieri said commercial rent in the an element of risk involved,” Weiner said. “The risk was ing the restaurants could open shortly ing around, there is specific demand area averages $15 to $22 per square foot, rewarded when the market was there to push the price thereafter. Earlier this year, the Madi- for retail in that area.” depending on the type of tenant. up to a level he felt was sufficient to sell the buildings.” son Heights City Council approved out- Dave Rea, president of Southfield- Nathan Skid: (313) 446-1654, Staff writer Kirk Pinho contributed to this report. door seating for both restaurants. based real estate brokerage and devel- [email protected]. Twitter: @NateSkid MARKET PLACE REAL ESTATE

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Page 22 CRAIN’S DETROIT BUSINESS September 16, 2013 Faurecia: Supplier aims to be heavyweight of carbon fiber parts ■ From Page 1 tle manufacturing capacity for big- family-owned trucking company volume carbon fiber parts. Those FAURECIA FACTS from Wayne. Rush is controlled by parts are too expensive to use and a Native American woman, Andra Ⅲ North American sales in 2011: too fussy to manufacture com- $4.7 billion Rush. All automakers, especially pared with stamped steel. Except Ⅲ North American sales in 2012: the Detroit 3, are eager to direct for a part here or there, carbon $6 billion more contracts to minority- and fiber still resides in the world of ul- Ⅲ North American sales forecast women-owned businesses such as traexpensive luxury cars, Formula for 2017: $7 billion Rush, Heneka said. One racers and fighter jets. Ⅲ New plants and tech centers Turning over final assembly to An investment in mass produc- opened in North America since the venture initially will mean less tion of carbon fiber parts by a 2010: 15 work inside Saline, he said. But it deep-pocketed global supplier such Ⅲ Employment in Southeast will bring the plant more work up- as Faurecia could change that sce- Michigan: 4,240 stream as new customers sign on nario. with Faurecia and with Detroit Mike Heneka believes Faurecia Manufacturing Systems. is up to the task, now that the com- PLANS AFOOT Other ventures, such as the car- pany has acquired a Detroit-area Faurecia’s acquisition last year of bon fiber plan, also will expand factory with 1.3 million square the former Ford Motor Co. interiors Saline’s mission. feet, a trained workforce and sup- plant in Saline has set a string of portive nearby customers. plans in motion. The supplier “We’re going to put the technolo- wants to: Cheaper carbon fiber gy into Saline,” Ⅲ Use one of Ford’s most COURTESY OF FAURECIA The carbon fiber part of the mas- said Heneka, competitive parts plants — now Employees at Faurecia’s Saline plant wear white bearing the company’s logo. ter plan began to take shape president of that it is independent from Ford — around the time that Faurecia ac- Faurecia North to solicit interiors business from the business. Ford wanted some- Faurecia logo. That touched off a quired the Saline plant. Also last America, who General Motors and Chrysler one who would bolster the opera- minor fury as workers balked at year, Faurecia acquired French negotiated the Ⅲ Invest in a carbon fiber parts tions and even use the plant to not being able to dress as they carbon fiber parts producer Sora deal to acquire production center to capitalize on serve other automakers. pleased. In the end, the union Composites. Until now, Sora has industry weight-reduction targets the Saline busi- Ⅲ Faurecia’s deal in the end al- agreed to wear the shirts. mainly supplied low-volume parts ness. “So far, it’s Outsource final assembly work lowed the French company to ac- More significantly, Faurecia’s to high-ticket cars in Europe. to Detroit Manufacturing really only prac- quire the business, valued about But Sora has taken steps to low- Systems, Faurecia’s minority- approach to mass production was tical for high- Heneka owned joint venture with Rush $1.1 billion a year in sales, while undergoing a radical change er the cost of making the parts — end cars in Eu- Group only leasing the factory building worldwide. Faurecia is abandon- which opens the door to wider use rope with very low production Ⅲ Expand into North American and real estate from Ford. That un- ing the age-old practice of making in the auto industry. To use car- runs. But we now have a propri- front-end module, exteriors and usual arrangement had not been products on fixed factory lines. bon fiber parts, automakers need etary manufacturing process for it floor pans offered in earlier negotiations. Too cumbersome, too inflexible, suppliers to speed up the “cooking that would make it viable here. Saline’s UAW workforce had too expensive and too 20th centu- time” required to make parts to “It’s really remarkable,” he said. with a highly trained workforce. been a sticky part of the negotia- ry, Heneka said. feed mass production lines. “You could easily lift a carbon But most important, the business tions for some interested suitors. Instead, Faurecia has embraced “The processing time in carbon fiber hood and carry it by yourself. is integrated into Ford’s North Union representation and wages what it calls a portable assembly fiber is slow, which makes it very We could even make trucks lighter American auto operations. Except are not part of the preferred busi- process. expensive,” Heneka said. “But I re- if we wanted.” for a couple of Mexico-built vehi- ness model for aspiring interna- Assembly workers push a hang- cently traveled to Europe to in- But first he needed a factory and cles, every car and truck Ford tional companies. Many of those ing fixture around a large circle spect our new system. Instead of a doorway into the Detroit 3. He makes in North America receives companies, including Faurecia, that resembles an indoor running taking 30 minutes to produce a also had to win over the workforce an instrument panel produced in have tended to grow in North track. The fixture holds the prod- door panel, we’ve got it down to 12 — which is still a work in Saline. Controlling the factory America by opening nonunion uct. As they walk with it around minutes. progress, according to the plant’s meant sitting at the right hand of greenfield factories in the South. the circle, they pause from station “This is where it starts to be- UAW leadership. one of the two biggest players in Heneka didn’t blink. to station to pick up the necessary come viable for larger production “Things are moving forward, the United States. He drove to the Saline plant and parts to install onto the module. runs.” but it’s still going to take a while to Heneka began angling to ac- introduced himself to the union Along the circle, subcompo- Research firm Frost & Sullivan get the relationship worked out,” quire Saline not long after becom- leadership. He met with the union nents can change as necessary. last year reported that carbon said Jason Heath, chairman of ing president of Faurecia in 2007, at Ford’s Dearborn headquarters The walking track can be length- fiber auto parts will boom over the Saline’s UAW Local 892. believing it to be a perfect fit with and laid out his plans to bolster ened or shortened instantaneous- next five years as automakers fig- The union is intently watching his company’s interiors business. and expand the operation. While ly. Multiple products can be made ure out how to bring down the job numbers at Saline. Since Faure- But other suitors also wanted the Faurecia had new plants in the in the same area. And more work- cost. The push toward more elec- cia stepped in, those have fallen to business. And in 2007, American South that are nonunion — in fact, ers can be added in response to tric and hybrid cars, in addition to 1,600 today from about 2,300 as the seating supplier Johnson Controls workers at a Faurecia seating higher customer orders. the industry drive to reduce company turned over a large piece Inc. claimed it. plant in Alabama voted down “We don’t do fixed assembly weight in general, will fuel that of Saline’s final assembly to a third- But the economic crash of 2008 UAW representation on Aug. 22 — lines anymore,” Heneka said. growth, the firm predicts. party minority-owned supplier, De- thwarted that plan. The search for the company also has a UAW “Our line today is different. You Outside suppliers will hold the troit Manufacturing Systems LLC. a buyer went on and Faurecia re- workforce in Michigan. might be working on the Ford F- key to bringing down the cost, the But Heath is optimistic. turned to the table. Conveniently for Faurecia, the 150 this year. You could be making Frost & Sullivan report predicts. “We should be able to bring in The jackpot kept growing. After wage structure had changed by something completely different “There is a lack of general engi- more work now,” he said. “Our Visteon collapsed, after Automo- 2012. The recession and the bank- next year.” neering experience among OEMs costs are competitive with any- tive Components Holdings stepped ruptcies at General Motors and This meant the Saline plant that are reluctant to move away body, we have a flexible work in to tend to it and after Johnson Chrysler had led the UAW to roll came stocked with obsolete pro- from the metal-based assembly schedule, and we were already one Controls exited the scene, the pos- back wages for starting workers. duction equipment. lines, which they have already of the best plants in the country.” sibility that Ford might simply And many older Saline workers “There were seven miles of con- heavily invested in,” it concludes. shutter the plant became a real had transferred out of the plant to veyors inside that plant,” Heneka Heneka is imagining big pieces consideration. continue working with Ford said. “That’s an old manufacturing of Faurecia’s global parts portfolio Why did Ford sell? rather than starting over with a system. Seven miles of lines means remade in carbon fiber. Why, then, was Ford keen to sell new employer, Heneka said. there are seven miles of inventory “If you take our seats, our ex- it? Ford invests $54 million Before the crash, Saline’s union sitting there in some stage of com- haust systems and instrument pan- Selling Saline was part of Ford’s But Ford continued to keep workers could expect to start at $19 pletion. els, it represents about 20 percent of plan to unbundle parts plants, a Saline current. Between 2008 and an hour and increase to $28. By the “We don’t sit on a lot of invento- the total weight of a car,” he said. “If strategy it struggled to accomplish 2010, as the industry crawled time of Faurecia’s takeover, starting ry,” he said. “We’ve got to change we can reduce some of that weight for more than a decade. To free it- through the recession, Ford spent union wages under the new national that factory model.” with our exterior components and self of in-house parts costs, Ford $54 million to install new technolo- agreement had dropped to $11, with Heneka also made it clear that with carbon fiber, it would be a big put 17 internal component busi- gy for spraying polyurethane onto a cap of $15.50 after three years. the portable system would render piece of weight reduction.” nesses up for sale, including glass the skin of the consoles and door There also would be cultural the factory too big. By shifting to Faurecia also is discussing a factories and powertrain parts and panels to enhance their feel. changes, he made it clear to the the new assembly approach and move into vehicle front-end mod- electronics plants. Della DiPietro, an original mem- union and to Ford. handing off final assembly to De- ules for North American cus- It first spun them off into Visteon ber of Automotive Components troit Manufacturing Systems, Fau- tomers, which would open more Corp. in 2000. And when that ven- Holdings’ operating committee as White shirts recia will only need about 500,000 doors to the material, as well as a ture failed, Ford retook control un- director of public affairs and gov- square feet of the plant’s 1.3 mil- move into large vehicle floorpans. der the Automotive Components ernment relations at the time, said For starters, there was the busi- lion total. Faurecia now intends to Following through on any or all Holdings subsidiary, which was that Ford was not out to sell Saline ness of white shirts. close off the unneeded portion, per- of these plans in the coming years tasked with keeping the big opera- to just anyone. Private equity in- Heneka asked Saline’s work- haps for future use. will be much easier, he said, now tions afloat while finding buyers vestors were not considered. Ford force to follow the company’s glob- Faurecia formed Detroit Manu- that Faurecia has a U.S. operating for them. wanted an owner who could serve al practice of wearing white polo facturing Systems last year as a center in Saline and an open chan- The 1960s-era Saline plant is big Ford’s long-term needs and grow shirts and T-shirts bearing the joint venture with Rush Group, a nel to U.S. customers. 20130916-NEWS--0023-NAT-CCI-CD_-- 9/13/2013 5:45 PM Page 1

September 16, 2013 CRAIN’S DETROIT BUSINESS Page 23 U.S. action in Syria would have little impact on defense contractors here

BY CHAD HALCOM but it includes a ban on ground unmanned drone aircraft. sile stockpile or require any new and infantry equipment systems, CRAIN’S DETROIT BUSINESS combat operations. Ken LaRose, CFO of Williams In- product orders. and unlikely to be affected by a Secretary of State John Kerry ternational, could not be immedi- “I’m not intimately familiar Syria campaign, he said. A limited military campaign met with Russian Foreign Minis- ately reached for comment on with every company’s supply The limited time frame could like the kind President Obama has ter Sergei Lavrov about a proposal whether a Syria campaign might chain and backorders, but even if also mean limited equipment loss, sought against Syria would have for Syria to hand over its chemical boost product orders. Matthew you get 150 or 200 cruise missiles he said — much like when a multi- only a light impact on Southeast weapons without conflict, and the Huff, vice president of business de- deployed in one campaign, it can’t national force in Operation Desert Michigan’s defense contractor Senate leadership delayed another velopment, said in an email the be a significant impact,” he said. Storm expelled Iraqi forces from community, because no ground vote on that bill while talks were company does not disclose most “That’s more than get consumed Kuwait in less than two months in warfare would be involved, local pending last week. military contract details without or fired off in various practice mis- early 1991, and did little to spur de- sources told Crain’s. Commerce Township-based Wil- the customer’s permission. sions, certainly, but it wouldn’t be mand for new or replacement Legislation that passed the Sen- liams International Corp. has been a But Dan Raubinger, director of enough to urgently (replenish) lost equipment the way sustained mili- ate Foreign Relations Committee component supplier in recent defense and manufacturing at Au- supplies.” tary campaigns in Iraq and this month would give Obama a years to Raytheon Corp. for the tomation Alley’s offices in Sterling Most of Southeast Michigan’s Afghanistan would years later. maximum 90 days to carry out a Tomahawk, a sea-launched land Heights, said he expects a short- defense contractors and their sup- Chad Halcom: (313) 446-6796, limited military strike on the strike missile, as well as turbofans term military campaign was un- pliers are suppliers to the U.S. [email protected]. Twitter: Bashar al-Assad regime in Syria, within cruise missiles and some likely to deplete the military’s mis- Army on various ground vehicle @chadhalcom

Data: Auto suppliers dig deep to discover nuggets of efficiency ■ From Page 1

Jon Riley, vice president of digi- rector of automotive consulting as big data grows. monitored. BorgWarner plans to panies, and we’re driving it to an- tal manufacturing for the Ann Ar- for Novi-based data analysis firm “To really survive going for- implement the system in the U.S. other level.” bor-based National Center for Manu- IHS Automotive Inc., said while pro- ward, suppliers have to absolutely and other parts of Europe this year AlphaUSA, which employs near- facturing Sciences, said the industry grams are in the early stages of master the idea of their portfolio, and in India and China next year, ly 100, is adding a second shift and fallout in 2009-10 has caused suppli- adoption, many suppliers are div- technology and how to diversify Kiebel said. is prepared for capacity swings ers to seek different avenues to- ing into data to assess which vehi- their business across geography, David Royce, vice president of over the next five years, thanks to ward efficiency. cle platforms they should target. customers and platforms,” Robi- strategic planning at Livonia-based data evaluation, Lawrence said. “Today’s suppliers are more He said the average life cycle of net said. TRW Automotive Inc., said large sup- “We’ve had a learning curve here lean and agile and are able to take a vehicle program is up to 20 years If suppliers aren’t using data, pliers are more rigorous at review- for using data, but we certainly advantage of some of these tech- — 28 months of development, five- “they will drop the ball some- ing existing data to prevent past have done our homework,” he said. nologies,” Riley said. “We’re see- plus years of production and sev- where,” he said. mistakes. “We’re going to look at different ing more small- and medium-sized en-plus years of participation in Cleveland-based Eaton Corp., “I wouldn’t characterize that types of data and more of it to find companies that recognize the im- service agreements. with a research and development there’s more focus on data points, more efficient means of business.” portance of leveraging their infor- “If you take a look at your aver- center in Southfield, said the new but it’s being analyzed to a greater Dustin Walsh: (313) 446-6042, mation, or data.” age vehicle program … you better launch schedule poses a new extent,” Royce said. “We all have a [email protected]. Twitter: Automakers and large global make darn sure threat to capacity management. wealth of information in our com- @dustinpwalsh suppliers have collected consumer you know what Jim Michels, business commu- data for decades, but the era of big you’re getting nications manager for the Eaton data is leading the entire industry into,” Robinet vehicle group, said the super- to dig deeper, said Paul McCarthy, said. “Suppliers charging and engine component vice president of industry analysis need to make supplier struggles with production for the Research Triangle Park, sure the vol- planning becausee of a lack of com- N.C.-based Motor & Equipment Manu- umes fit their munication from customers. facturers Association. business and, “Most of the time it all aligns, but “We all know the industry is mov- from a cost per- sometimes a customer will say ing faster than it ever has,” Mc- Robinet spective, they ‘trust us’ with regards to future vol- Carthy said, “and the use of data is are not giving up business else- umes,” Michels said. “That creates now creating a responsive, and sus- where that could be more benefi- a real challenge, especially as we’re tainable, business model.” cial.” going into the fourth quarter and Steve Patton, partner and global Henkel Corp., the Madison looking at advanced planning.” automotive advisory leader for Heights-based subsidiary of Ger- Michels said Eaton is using in- Ernst & Young LLP, said advance- many-based Henkel AG & Co. KGaA, ternal and external data to better ments in technology have boosted uses production schedule data from predict volumes to align its produc- the use of data in industry. IHS Automotive and internal data tion cycle. “There’s an abundance of data, collection to gauge market trends “With the number of new launch- from the shop floor to the back of- and automaker launch schedules to es coming, there isn’t a lot of room fice,” Patton said. “If you can har- maximize profitability. for error; we simply can’t miss,” ness the power of data, there’s a lot Dan Wohletz, vice president of Michels said. “We have to be much of efficiency to be gained, and the technical sales for the automotive more cognizant of our data and availability and access to the data adhesive supplier, said aligning making sure we are triangulating has helped.” the data points has become critical that data and not relying on a sin- However, the supply base is in the in Henkel’s customer interaction. gle source for decision-making go- nascent stages of big data, said “We look for customers that are ing forward.” Karen Newman, vice president of launching global platforms and Auburn Hills-based BorgWarner automotive in- tailor our product offerings Inc. is using data collection to mon- dustry for the around their design deadlines,” itor its supply chain. Americas at IBM Wohletz said. “We’re using the The company’s Supplier Perfor- Global Business data to balance our short-term ver- mance Monitor, which it began us- Services in South- sus long-term plans and determin- ing in Germany and Ireland about field. She also ing what customers we want to be two years ago, has saved money by warns that sup- tight with in 2018.” reducing parts defects and allow- pliers that are For instance, Henkel is developing BorgWarner to stock fewer not at least col- ing innovations for Volkswagen AG’s surplus parts, Automotive News re- lectin data will MQB platform and General Motors ported last month. Newman suffer. Co.’s Delta platform, he said. Holger Kiebel, vice president of “I think right now we’re seeing a In 2018, VW’s MQB platform — supply chain at BorgWarner unit lot of (auto suppliers) companies which includes the Audi TT, Volk- Beru Systems in Ludwigsburg, Ger- beginning to look at the area of big swagen Golf and more — is expect- many, told Automotive News that data, but we’re not seeing a lot of ed to reach 5 million units, and both metrics have declined by dou- leaders in the space,” Newman GM’s Delta platform — Chevrolet ble-digit percentages. said. “Get on board or be left be- Cruze, Volt, Equinox, etc. — is ex- The system mainly analyzes the hind; the suppliers using big data pected to reach 2.4 million units quantity of parts in each delivery, and those concepts are going to get globally. comparing that figure with the more of those big programs from Robinet said companies without original order and with the num- automakers as we move forward.” finely tuned data analysis process- ber of parts that have to be re- Michael Robinet, managing di- es are facing a tougher road ahead turned for quality problems. About 180 suppliers are being 20130916-NEWS--0024-NAT-CCI-CD_-- 9/13/2013 5:54 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS September 16, 2013

UPCOMING Enroll: Will health insurers be heard? ■ From Page 1 or families of four that earn $92,000 PARTNER EVENTS a year can receive subsidies. While health insurers plan to in- 1 We are dealing with hundreds of Crain’s partners with a variety of crease spending on marketing and “ 2013 advertising during open enroll- thousands of consumers who organizations on events by providing ment beyond a typical product special subscription offers for their members. launch, most insurers haven’t fi- don’t have an insurance Visit their websites for more details. nalized their strategies. Questions: Will insurers adver- relationship today; they are Coming Up at the Troy Chamber tise their products to customers as shopping on a marketplace September Membership Luncheon & Mini Business Expo having higher value and lower cost SPEAKER: Rodney O’Neal, president and CEO, Delphi than their competitors? Or will that doesn’t exist yet, to buy Automotive they simply tout their brand Sept. 19 • 10:30 a.m. – 1 p.m. | San Marino Club names, customer service and pro- products they haven’t seen and vider quality? The Power of Story & Relationships to Build Business for prices they don’t know. SPEAKER: Lynne Golodner, owner and chief creative offi cer, Spending plans ” Your People LLC Andy Hetzel, Blue Cross Blue Shield of Michigan Sept. 20 • Noon – 1 p.m. | Troy Chamber Offi ce Marti Lolli, director of health reform with Grand Rapids-based Pri- Blue Cross maintains a health re- us directly, they will be directed to Top of Troy: Women of Infl uence ority Health, said form website at www.bcbsm.com the exchange if they are eligible SPEAKERS: Caroline A. Grech-Clapper, executive partner, most advertis- (click on the health reform button for subsidies.” Secrest Wardle; Jennifer Kluge, publisher, Corp! magazine, ing dollars will near the bottom of the page), and Lolli said small businesses will president and CEO, Michigan Business & Professional be spent after Priority Health has www.under have a greater choice of products Association and Michigan Food & Beverage Association; Oct. 1 to target standinghealthreform.com. Hetzel outside of the exchange, at least for Linda McIntosh, corporate director of communications, The the uninsured. said Blue Cross plans to change its 2014. Forbes Company, and marketing director, Somerset Like other traditional advertising approach Kirk Roy, Blue Cross’ vice presi- Collection; Tammy Klugh, vice president diversity and health insurers, for the exchange. dent of health inclusion, Kelly Services Priority Health Sept. 25 • 8 – 9:30 a.m. | MSU Management Education “It is more retail-oriented,” he care reform, has been work- Center. Details, cost and registration: 248-641-8151, said. “Some (insurers) are opening said Blue Cross ing with commu- [email protected] or www.troychamber.com/cal retail stores to market to individu- also will help Lolli nity organiza- als, not us. We are not advertising consumers tions like libraries the past year to 13th Annual Great Lakes Women’s Business Conference to companies that make decisions avoid mistakes help the public understand the Pa- Achieve six months of sales prospecting in two days and for (employees). It is more direct- in enrollment tient Protection and Affordable learn leadership and sales strategies that will serve you response advertising.” by offering sub- Care Act. all year long. KEYNOTE SPEAKERS: Cynthia Kay, president Hetzel said direct-response ad- sidy calculators “We won’t know what the rates and CEO, Cynthia Kay and Company; Susan Bari, president vertising asks consumers to call a to alert them if are and how our plan looks against emeritus, Women’s Business Enterprise National Council phone number for more informa- they could save other plans until after Oct. 1,” Lolli Roy (WBENC) tion. “If you are interested in talk- money on the said. “We will advertise price if it is Sept. 24 • Noon – 7:30 p.m. | Sept. 25 • 8 a.m. – 5 p.m. ing with us, return this card and exchange rather than purchasing a selling feature. Regional factors Suburban Collection Showplace, Diamond Center, Novi we will reach out to you and sched- policies in the regular market. CEED and WBE members: $175 • Non-members: $200 play into it. You could be lower ule a meeting,” he said. Roy said Blue Cross and Blue Registration: www.miceed.org or 734-677-1400 priced on one region or another. HAP recently opened a retail Care Network will offer most in- We will help explain prices after store inside the Henry Ford surance products on the exchange Success for Small, Minority and Women Businesses the subsidies.” OptimEyes Troy Super Vision Cen- except for the platinum plan for in- Speakers will share successes, challenges and obstacles, Andy Hetzel, Blue Cross Blue ter in Troy to help people purchase dividuals. their leadership style and future plans. Brought to you by Shield of Michigan’s vice president health insurance and enroll in Med- The insurance exchange will the Southfi eld Area Chamber in partnership with the Royal for corporate communications, icaid. present consumers with four tiers Oak and Ferndale Area Chambers of Commerce. SPEAKERS: said Blue Cross won’t do much ad- Lansing-based Consumers Mutual of coverage options — platinum, Florine Mark, CEO, Weight Watchers; Pamela Good, vertising before Oct. 1. Insurance of Michigan, a newly ap- gold, silver and bronze — that executive director, Beyond Basics; Michele Lewis, owner, However, Hetzel said Detroit- proved cooperative, is prohibited have different cost-sharing levels Painting with a Twist based Blue Cross and Blue Care Net- Sept. 26 • 4 – 7p.m. from advertising its exchange and benefits. work will spend twice as much over Shriners Silver Garden Event Center, Southfi eld products until Jan. 1 when it be- For example, while each plan the next six months on advertising Members: $10 • Non-members: $25 gins to generate revenue, said must offer 10 essential benefits, a its exchange products as it typical- Cost to exhibit: Members: $100 • Non-members: $150 David Eich, marketing and public platinum plan could offer more ly does because of the lack of public Registration: www.southfi eldchamber.com/success relations officer. benefits and less out-of-pocket information. However, it has developed educa- costs than the least expensive Salute! to Health Care in Southeast Michigan “We are dealing with hundreds of tional fliers and a video about Med- bronze plan. But the platinum plan Join the who’s who in health care at the Greater Detroit thousands of consumers who don’t icaid and private insurance expan- will cost more upfront. Area Health Council’s annual awards dinner. FEATURING: have an insurance relationship to- sion with the Michigan Primary Care Roy said Blue Cross research Lila Lazarus, TV personality and spokesperson. AWARD day; they are shopping on a market- Association. The flyers and videos has shown that the most popular RECIPIENTS: Kimberlydawn Wisdom, M.D., M.S., SVP place that doesn’t exist yet, to buy have been placed in the state’s 32 plan is expected to be the lower- community health & equity and chief wellness offi cer, products they haven’t seen and for federally qualified health centers. cost bronze plan, which would re- Henry Ford Health System and Matrix Human Services prices they don’t know,” said Het- Eich said the public also can quire purchasers to pick up 40 per- Sept. 26 • 5:30 – 8 p.m. zel. learn about health care reform by cent of billed medical costs. International Banquet Center, Atheneum Hotel, Detroit “Blue Cross has a strong brand, visiting its simplyhealthee.com For example, a new Avalere Health Members: $100 • Non-members: $135 but not a big brand with the unin- survey of 12 state exchanges found Registration: www.gdahc.org website. sured,” he said. the average monthly premium for a Detroit-based Health Alliance Plan bronze plan is $274, compared with Meet the Buyers: A Procurement Matchmaking Event also has been building brand SHOP for products $336 for the silver plan. Tax credits Meet with buyers from federal, state and local governments. awareness in its advertising cam- Introduce your products and services. Understand buying Most health insurers will offer a could decrease the premium paid to paign for its exchange insurance requirements and how to get into the system. full range of insurance products as low as $100 per month. products, said Donna Reid, HAP’s Oct. 10 • 8 a.m. – 1 p.m. • Schoolcraft College, VisTaTech on the exchange for individuals However, experts warn that con- Center, Livonia. $25 per person, includes continental vice president of marketing and and with the Small Business Health sumers could pay large out-of-pock- breakfast. Registration (required): 734-462-4438 or communication strategies. Options Program, or SHOP ex- et expenses with the bronze plan if [email protected] “Come Oct. 1, we will do con- change, said executives. they require extensive medical care. sumer education that (tells people The SHOP exchange, which will Toni Frawley, HAP’s director of Marketing & Sales Executives of Detroit (MSED) HAP is) on the exchange,” said be part of the larger exchange, will product development, said HAP 20th Annual Awards Gala Reid, adding that HAP also hasn’t offer insurance products to small also plans to offer a wide variety of The MSED Annual Awards Gala recognizes salutes decided whether to advertise its businesses with 100 or fewer full- insurance products off and on the companies and individuals who have gone the extra mile, prices compared to competitors. time equivalent employees. exchange. challenged paradigms and had the courage to pioneer. Reid said HAP plans to do the Lolli said Priority Health will of- Despite small employers clamor- HONOREES: MSED Executive Leadership Award: Alan Batey, traditional mix of advertising in fer 19 insurance products on the ing for price information about ex- General Motors; MSED Trailblazer Award: Andra Rush, Rush print, television, radio and direct exchange, including a high-de- change products as they make bud- Group; Herb Everss Lifetime Achievement Award: Peter mail. The messages will direct peo- ductible catastrophic plan for indi- getary decisions, Frawley and the Karmanos, Jr. and the MSED Platinum Award Recipients ple to HAP’s call center and web- viduals under age 30. other insurance executives don’t Oct. 16 • 6 – 10:30 p.m. • The Roostertail, Detroit site, www.chooseHAP.org. “We will have the same individ- want to reveal their premiums for Members: $150 • Non-members: $195 “Surveys show that people want ual products outside the ex- competitive reasons. Registration: www.msedetroit.org or Meeting Coordinators to talk with someone,” Reid said. Jay Greene: (313) 446-0325, at 248-643-6590 change,” she said. “We have built “We want to give them a great ex- technologies to be able to talk with [email protected]. Twitter: perience over the phone.” the exchange. If people shop with @jaybgreene 20130916-NEWS--0025-NAT-CCI-CD_-- 9/13/2013 5:44 PM Page 1

September 16, 2013 CRAIN’S DETROIT BUSINESS Page 25

www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain GROUP PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] ASSOCIATE PUBLISHER Marla Wise, (313) 446- 6032 or [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- 0460 or [email protected] MANAGING EDITOR Jennette Smith, (313) 446- 1622 or [email protected] MANAGER, DIGITAL CONTENT STRATEGY Nancy Hanus, (313) 446-1621 or [email protected] MANAGING EDITOR/CUSTOM AND SPECIAL PROJECTS Daniel Duggan, (313) 446-0414 or [email protected] SENIOR EDITOR/DESIGN Bob Allen, (313) 446- 0344 or [email protected] SENIOR EDITOR Gary Piatek, (313) 446-0357 or [email protected] WEB EDITOR Kristin Bull, (313) 446-1608 or [email protected] WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- 8158 or [email protected] DATA EDITOR Brianna Reilly, (313) 446-0418, [email protected] WEB PRODUCER Norman Witte III, (313) 446- 6059, [email protected] EDITORIAL SUPPORT (313) 446-0419; YahNica Crawford, (313) 446-0329 NEWSROOM (313) 446-0329, FAX (313) 446- 1687 TIP LINE (313) 446-6766 Courtroom 734, aka REPORTERS the “million dollar court- Jay Greene, senior reporter: Covers health care, room,” in the Theodore insurance, energy utilities and the environment. Levin U.S. Courthouse (313) 446-0325 or [email protected] Amy Haimerl, entrepreneurship editor: Covers in downtown Detroit is entrepreneurship, second-stage companies and PHOTOS BY ARA HOWRANI where the city’s bank- small business. (313) 446-0416 or [email protected] ruptcy will be mediated. Chad Halcom: Covers litigation, higher education, Above: The judge’s non-automotive manufacturing, defense contracting and Oakland and Macomb counties. bench is carved of East (313) 446-6796 or [email protected] Indian mahogany. Tom Henderson: Covers banking, finance, technology and biotechnology. (313) 446-0337 or Far left: Ornate fix- [email protected] tures light the court- Kirk Pinho: Covers real estate and the city of Detroit. (313) 446-0412 or [email protected] room. Bill Shea, enterprise editor: Covers media, Near left: For Chief advertising and marketing, the business of sports, and transportation. (313) 446-1626 or Judge Gerald Rosen, [email protected] the most important icon Nathan Skid, multimedia editor: Also covers the food industry and entertainment. (313) 446-1654, is found at the very [email protected] back of the courtroom: Dustin Walsh: Covers the business of law, auto suppliers and steel. (313) 446-6042 or a dagger piercing an [email protected] unction pot, meaning Sherri Welch: Covers nonprofits, services, retail and hospitality. (313) 446-1694 or justice tempered by mer- [email protected] cy or compassion. LANSING BUREAU Chris Gautz: Covers business issues at the Capitol and utilities. (517) 403-4403 or [email protected] ADVERTISING Court: Bankruptcy case in SALES INQUIRIES (313) 446-6052; FAX (313) 393-0997 Just three of the reasons SALES MANAGER Tammy Rokowski SENIOR ACCOUNT EXECUTIVE: Matthew J. Langan ‘million dollar’ chambers to book our bus. ADVERTISING SALES Christine Galasso, Jeff Lasser, Dale Smolinski, Sarah Stachowicz ■ From Page 3 CLASSIFIED SALES Angela Schutte, manager, DONNA (313)-446-6051 “I was sworn in as a lawyer in “Chief Judge Tuttle had the fore- MIKE MITCH GENERAL MANAGER/BUSINESS DEVELOPMENT that courtroom,” Rosen said. “I sight to recognize that this room Driver Customer Service Mechanic AND EVENTS Elizabeth Buscher DIRECTOR, INTEGRATED MARKETING Eric Cedo tried cases in front of the chief was so unique and that despite the You’ll love this Our girl Friday (... and If it ain’t broke, he’ll EVENTS MANAGER Kacey Anderson judge in that courtroom. I was cost it deserved to be preserved.” man in uniform. every other day, too!) check it anyway.y y SENIOR PRODUCER FOR DIGITAL/ONLINE sworn in as a judge in that court- Each of the four original ceiling PRODUCTS Pierrette Dagg room. I was married in that court- MARKETING ARTIST Sylvia Kolaski beams is carved with symbols that SALES SUPPORT Suzanne Janik, YahNica Crawford room. So for me to be able to pre- represent justice, authority, equal- PRODUCTION MANAGER Wendy Kobylarz side in that courtroom isn’t just a ity and judgment, among other PRODUCTION SUPERVISOR Larry Williams professional honor, but it is also things. For Rosen, the most impor- CUSTOMER SERVICE very personal to me. It goes back 30- tant icon is found at the very back MAIN NUMBER: Call (877) 824-9374 or write plus years.” [email protected] of the courtroom: a dagger pierc- SUBSCRIPTIONS $59 one year, $98 two years. The “million dollar courtroom,” ing an unction pot. Out of state, $79 one year, $138 for two years. as the historical society for the Outside U.S.A., add $48 per year to out-of-state “The judge is to look at that and rate for surface mail. Call (313) 446-0450 or court has dubbed it in its official consider before rendering sentence (877) 824-9374. brochure, was built in 1896. But the SINGLE COPIES: (877) 824-9374 the competing values of justice and REPRINTS: (800) 290-5460, ext. 125; chamber’s future became murky in mercy or compassion. Justice, the (717) 505-9701, ext. 125; or lindsay.wilson the early 1930s as calls to demolish @theygsgroup.com dagger, through an unction pot, TO FIND A DATE A STORY WAS PUBLISHED: the original courthouse and build a which is a salve meaning justice (313) 446-0406 or e-mail [email protected] new, larger facility grew louder. tempered by mercy or compas- CRAIN’S DETROIT BUSINESS IS PUBLISHED BY Legend has it, according to Rosen, CRAIN COMMUNICATIONS INC. sion.” CHAIRMAN Keith E. Crain that the chief judge at the time, PRESIDENT Rance Crain Arthur J. Tuttle, refused to approve Those are the values that Rosen TREASURER Mary Kay Crain said he’ll be keeping in mind when Executive Vice President/Operations the new courthouse if the U.S. Depart- William A. Morrow ment of Treasury wouldn’t agree to mediating creditor issues in De- Executive Vice President/Director of Strategic troit’s bankruptcy. However, the Operations Chris Crain preserve his courtroom and trans- Vice President/Production & Manufacturing fer it to the new building. At the attorneys may be happy to know Dave Kamis time, the marble walls alone were not all sessions will happen in Vice President/Chief Information Officer these weighty chambers. Even Paul Dalpiaz estimated to be worth $1 million. Vice President/Chief Human Resources Officer Tuttle has since become known Rosen, despite his history with the Margee Kaczmarek room, understands its power. G.D. Crain Jr. Founder (1885-1973) as the “judge that wouldn’t budge” Mrs. G.D. Crain Jr. Chairman (1911-1996) because he won. “I know that when I was trying EDITORIAL & BUSINESS OFFICES: 1155 Gratiot Ave., Detroit MI 48207-2732; The original courthouse was de- cases, coming into that courtroom (313) 446-6000 always gave me pause,” he said. “I Cable address: TWX 248-221-5122 AUTNEW DET molished and the Theodore Levin t NEWNEW MODELMODEL COACHESCOOACCHES always felt that I had to raise my CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is U.S. Courthouse was built at tFREE WIFI t24/7 DISPATCH published weekly, except for a special issue the third Lafayette Boulevard and Shelby game even higher, and I always week of August, and no issue the third week of ECO-FRIENDLY December by Crain Communications Inc. at 1155 Street for $4 million. It took three tried to bring my best game. That t Gratiot Ave., Detroit MI 48207-2732. Periodicals courtroom demands that you bring tEXPERT BOOKING CONSULTANTS postage paid at Detroit, MI and additional mailing months and $3,500 in labor costs, offices. POSTMASTER: Send address changes to according to a brochure from the your very, very best game. There is tAFFORDABLE RATES CRAIN’S DETROIT BUSINESS, Circulation a certain majesty about that court- Department, P.O. Box 07925, Detroit, MI 48207- historical society, to install Tuttle’s 9732. GST # 136760444. Printed in U.S.A. courtroom. Now, 117 years later, room. I think everyone who comes Entire contents copyright 2013 by Crain into that courtroom feels it.” Communications Inc. All rights reserved. Rosen is meting out justice is the Reproduction or use of editorial content in any very same environment as Tuttle. Amy Haimerl: (313) 446-0402, 800-292-3831 indiantrails.com manner without permission is strictly prohibited. “The courtroom is a real gift to all [email protected]. Twitter: of us generations later,” Rosen said. @haimerlad 20130916-NEWS--0026-NAT-CCI-CD_-- 9/13/2013 5:42 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS September 16, 2013 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF SEPT. 7-13

tion Andre Agassi will visit Detroit for a private tour State initiative PHOTO CONTEST’S GRAND PRIZE WINNERS and speaking engagement Peter Catalanotte Hot dog at Southwest Detroit Tuesday Jr.’s photo of the Lighthouse Charter Academy, aims to reduce iconic Comerica the first Michigan charter Park tiger and school of Framingham, Wally Nowinski’s biz regulations colorful image of vendor’s tale Mass.-based nonprofit Light- house Academies. Brush Park, taken after a storm, were Agassi is expected to join imed at reducing or eliminating burden- the two grand prize Lighthouse President-CEO A some business regu- winners in Crain’s Michael Ronan for a tour of lations, the new Reinventing Summer in the City a saucy one the school in Detroit’s photo contest. Performance in Michigan ini- Chadsey-Condon neighbor- he Detroit Tigers have “Amen!” to a retweet of “If tiative will be implemented The prize for Catalanotte, 35, of a roster filled with you put ketchup on a hot hood, where the Canyon- in several state depart- St. Clair: A T superstars and are dog, then I think you de- Agassi Charter School Facili- ments. The first phase of ties Fund has made its first personalized brick poised for another run at serve an ejection from that the initiative’s rollout was paver along the the World Series, but the baseball game.” Michigan school invest- completed in July and re- Detroit RiverWalk, biggest headline about the Sportservice is a division ment. sulted in the Michigan Liquor courtesy of the team in the season’s wan- of Buffalo, N.Y.-based A Wimbledon champion Control Commission issuing Detroit Riverfront ing days are about a Delaware North Cos. Inc. and Olympic gold medalist, liquor licenses on average Conservancy. singing hot dog vendor. Agassi is now co-managing 63 percent faster after The photo, “Eat ’Em Up, Tigers,” was taken and shared as a The saga of Charley Mar- partner of the school fund streamlining the previous- tribute to James Van Horn and Dreadlock Mike, homeless cuse’s Sept. 6 firing by Com- EPrize house band in rock with Chairman and CEO ly paper-intensive process. men known to Tigers fans, who were killed this summer by a erica Park concessionaire Bobby Turner of Canyon Capi- hit-and-run driver in Detroit, and because of a tragedy in his hall of fame contest own life. Sportservice, and a subse- tal Realty Advisors. quent Detroit News story EPrize’s in-house compa- The fund aims to provide ON THE MOVE Nowinski’s photo, taken from the window of his living room, wins him a stay at the Townsend Hotel in Birmingham. “The hinting that Marcuse’s dis- ny band Toybox is headed to facilities for high-achieving the Rock and Roll Hall of Ⅲ The Michigan Science particular rainbow was only there for a few minutes, so I was dain of ketchup on hot dogs charter schools, with a goal Fame and Museum in Cleve- Center named Tonya very fortunate to catch it,” said Nowinski, 28. may have played a role in of providing up to 50,000 land to compete in Fortune Matthews, 39, president and Summer in the City drew more than 300 photo submissions. his dismissal, has received school seats nationwide. magazine’s 13th annual CEO, effective Oct. 15. Nine weekly prizes included gift certificates to local widespread media coverage Lighthouse Academies, “Battle of the Corporate Matthews, who succeeds in- restaurants and businesses. from sports and main- founded in 2003, has 20 Bands” finals on Sept. 28. terim Executive Director stream media. which it expects to sell for Toybox will compete charter schools in six states James Issner, was vice presi- Ⅲ New York City-based Sportservice and the $9 to $11. against seven other corpo- and Washington, D.C. dent of museums for the jewelry and timepiece Tigers have declined to Ⅲ The Warren-based ad- rate bands from Illinois, Southwest Detroit Light- Cincinnati Museum Center. maker David Yurman opened comment on the situation. vertising agency Lowe Pennsylvania, Virginia, house, its first Michigan its first stand-alone Michi- Marcuse, who has said Campbell Ewald said it Maryland, Nebraska and school, opened for this aca- gan location at The Somer- over the years that he’s COMPANY NEWS picked up “a substantial Rhode Island, including demic year with about 300 set Collection in Troy. been given a variety of piece” of the marketing for Hasbro Inc.’s Toys 2 Men. K-5 students. Ⅲ Auburn Hills-based Ⅲ Ryba Marine Construc- shifting rules about when Denver-based Atkins Nutri- They’ll be judged by a developer Moceri Cos. re- tion Co. of Cheboygan will he can sing during games, tionals Inc., which pro- panel of music industry ceived approval from the begin dredging the lower has filed a grievance with duces products for its low- judges. BITS & PIECES Auburn Hills City Council for portion of the Detroit River his union, so it’s possible carb weight loss Atkins Toybox had to submit Ⅲ Michigan International a $46 million project, The this month after being he could be back selling Diet. three songs on a CD to the Speedway on Sept. 11 was Parkways, with town- awarded a $1.5 million con- wieners at some point. Ⅲ Dallas-based Tenet tract from the U.S. Army hall of fame, then advance given NASCAR’s “green homes, flats and a senior The operatic Marcuse Healthcare Corp. plans to is- from a regional competi- housing center. Corps of Engineers. sold wieners at Tigers track” operator award in sue $4.6 billion of bonds in tion. Bands must be from Ⅲ Troy-based Dayco Prod- games for more than 15 Chicago. The honor recog- its largest sale ever to help companies with at least 50 ucts LLC announced the ac- years, beginning in 1999 at nizes motorsports facilities fund the purchase of Van- OTHER NEWS employees, and the region- quisitions of bankrupt Tiger Stadium, and has been for their ongoing contribu- guard Health Systems Inc., al and finals fees total Southfield-based automo- Ⅲ A court-approved com- covered by CNN, ESPN and tions to developing effec- the Nashville-based owner $10,000. Proceeds from the tive and sustainable green tive damper manufacturer mittee for retired Detroit Sports Illustrated for his Metavation LLC and assets of the Detroit Medical public employees filed pa- event support the hall of policies and practices. singing ballgame com- from Eptec SA de CV of San Center. pers in U.S. Bankruptcy Court fame and museum’s educa- Ⅲ Dan Gilbert has been merce. Luis Potosi, Mexico. Dayco Ⅲ The Craftsman Credit claiming that because of a tional programs. named the Harvard Business Marcuse has his own acquired the assets for Union in Detroit was ac- constitutional question, a School Club of Michigan’s brand of mustard, $25.1 million, according to quired by Security Credit higher court should decide Business Leader of the Year Charley’s Ballpark Mus- Agassi fund invests in a U.S. Bankruptcy Court fil- Union in Flint after its whether the city remains tard, sold locally by his De- Michigan charter school for 2013. He’ll be recognized ing. forced liquidation by the in bankruptcy. The com- troit-based Charley’s Food at a dinner on Oct. 10. De- Ⅲ Defense contractors Michigan Department of In- mittee accused Emergency Inc. Tennis men’s singles tails and ticket information gaining recent contracts surance and Financial Ser- Manager Kevyn Orr of filing On Sept. 5, he wrote champion and 1990s sensa- are at hbsmi.org. from the U.S. Army, much of vices. the case with the intention it for alternative energy Ⅲ Detroit-based DTE En- of cutting pensions for re- and environmental ser- ergy Co. wants potential de- tired city workers. vices, were CTI-URS Environ- velopers of its coal-fired Ⅲ Gov. Rick Snyder mental Services LLC, a Harbor Beach Power Plant backed away from his call site to respond to a request XECS TALK EXPANSION AT RAIN S ASTEST ROWING OMPANIES EVENT Wixom-based joint venture to raise an extra $1.2 billion E C ’ F -G C for information by Sept. 27. of CTI and Associates Inc. for road and bridge mainte- Making strategic investments to The plant will be shuttered and URS Corp.; LTC Federal nance through higher gaso- grow a company was the theme at by April 2015. LLC, a government services line taxes and license plate the Crain’s Fastest Growing Ⅲ DTE Electric Co. and Big Companies event Wednesday subsidiary of Detroit’s tabs but said part of a fund- Turtle Wind Farm LLC in night at the Colony Club in Lakeshore TolTest Corp.; ing plan he proposed is sal- Huron County got Michigan Detroit. Sterling Heights-based vageable in the Legislature, Public Service Commission Panelists including Todd Sachse, he told the AP. General Dynamics Land Sys- OK for their power pur- president of Detroit-based Sachse Ⅲ Fewer employers than tems; the U.S. Army Tacom chase agreement for 20 Construction and Development originally predicted are ex- Life Cycle Management Com- megawatts of energy, ca- Co.; Michael Ansley, president mand in Warren; and GE pected to drop health insur- and CEO of Southfield-based pacity and renewable-ener- Aviation Systems LLC in ance benefits in 2014 be- Diversified Restaurant Holdings AARON ECKELS gy credits. Inc.; Richard Beckman, CEO of Grand Rapids. Ⅲ A portfolio of 11 cause of health reform, said From left: Panelists David Carroll of Quicken Loans Inc., Ⅲ a study by University of Bloomfield Hills-based Great Richard Beckman of Great Expressions Dental Centers Detroit-based Com- ground leases for 7-Eleven Expressions Dental Centers PC; and Todd Sachse of Sachse Construction Co. puware Corp. announced Inc. convenience stores in Michigan economists. and David Carroll, vice president of terms for the long-planned Howell, Romulus, Warren miscellaneous stuff at Detroit- initial public offering of its and Chesterfield, Clinton, based Quicken Loans Inc., talked about the benefit of taking strategic risks, expanding OBITUARIES Covisint LLC business unit, Lenox, Macomb and Shel- business locations and adding staff even during the region’s economic downturn. which provides cloud- by townships was sold to Ⅲ Richard Elsea, chair- “We believe in investing as opposed to spending,” Sachse said. “And we view people as an based data-sharing ser- Miami-based Tevi Florida man and COO of South- investment.” vices. Compuware plans to LLC for $15.8 million by field-based Real Estate One To see more photos and read more about the event or Crain’s list of Fastest Growing raise at least $64 million by Sterling Heights-based JBD Inc., died Sept. 10. He was Companies, visit www.crainsdetroit.com/fastestgrowing offering 6.4 million shares, Development Group LLC. 83. DBpageAD_DBpageAD.qxd 8/19/2013 3:08 PM Page 1

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Screen image simulated. Offers avail. for corp-liable customers only. Activ. Fee: $36/line. Credit approval req. Early Termination Fee (sprint.com/etf): After 14 days, up to $350/line. Phone Offer: Offer ends 9/30/13. While supplies last. Taxes and svc charges excluded. No cash back. Req. activation of all same model phones on same account in one sales transaction. Data: Add’l charges apply for premium content/downloads. Includes select e-mail. Usage Limitations: Sprint may terminate service if off-network roaming usage in a month exceeds: (1) 800 min. or a majority of min.; or (2) 300 MB or a majority of KB. Prohibited network use rules apply. Engaging in such uses will not result in throttling but could result in adverse action. See sprint.com/termsandconditions. Other Terms: Offers and coverage not available everywhere or for all phones/networks. Restrictions apply. See store or sprint.com for details. CL Port-in Svc Credit: Offer ends: 9/30/13. Available online, via telesales, in participating Sprint Stores, and direct & indirect business channels. Purchases from other national retailers are not eligible for svc credit. Requires port-in from an active number (wireless or landline). Svc credit request must be made at https://www.sprintportcredit.com within 72 hours from the port-in activation date or svc credit will be declined. Must remain active with Sprint Business for 61 days to receive full svc credit. Excludes upgrades, replacements and ports made between Sprint entities or providers associated with Sprint (i.e. Virgin Mobile USA, Boost Mobile, Sprint As You Go and Assurance), telephone numbers active on Sprint within the previous 60 days, all Individual-liable plans, Seasonal Standby plans, all plans with an MRC $10 or less, Business Freedom plans, M2M plans, special Government plans, and select custom pricing plans. May not be combinable with other offers. Port-in Payment Expectations: If the svc credit does not appear on the ﬁrst or second invoice following the 61st day, visit https://www.sprintportcredit.com and click on “Where’s My Service Credit”. Other Terms: Offers and coverage not available everywhere or for all phones/networks. Restrictions apply. See store or sprint.com for details. Nationwide Sprint Network reaches over 278 million people. Sprint 3G network reaches over 275 million people. ©2013 Sprint. All rights reserved. Sprint and the logo are trademarks of Sprint. Other marks are the property of their respective owners. DBpageAD_DBpageAD.qxd 9/3/2013 11:59 AM Page 1

”WELCOME TO OUR WORLD”

The seven pilots of the Breitling Jet Team belong to the international elite of aviation professionals. In performing their aerobatic figures at almost 500 mph, flying 7 feet from each other and with accelerations of up to 8Gs, errors are not an option. It is for these masters of audacity and daring exploits that Breitling develops its chronographs: sturdy, functional, ultra high-performance instruments all equipped with movements

chronometer-certified by the COSC – the highest official benchmark in SUPEROCEAN HÉRITAGE terms of reliability and precision. Welcome to the Breitling world. CHRONOGRAPHE