20100510-NEWS--0001-NAT-CCI-CD_-- 5/7/20106:25PMPage1 from aroundthecountry,will including venturecapitalists County. the firstoneinMacomb McLaren HealthCare owned byFlint-based 288-bed teachinghospital Level IITraumaCenter,the Mount ClemensRegionala Health Department ofCommunity vision ispartofthe Trauma Division centers bythestate’s become designatedtrauma process bywhichhospitals tion isthefirststepin American CollegeofSurgeons Center bytheChicago-based fied asaLevelIITrauma Medical Center at St.MaryMercy, Page9 come withbigexpectations New residencyprograms Page 8 government contracts, landing first-time Companies gethelp professionals young Jewish a handto Lending smaller constructionmarket Masco findingitswayin NEWSPAPER offers chancetopitchforVC Michigan GrowthSymposium trauma centerdesignation Mt. Clemenshospitalnears Health CareExtra This JustIn Inside Page 3 If Michigandesignates Trauma centerverifica- Mount ClemensRegional More than350attendees, . 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TheEMSdi- ©Entire contentscopyright2010byCrainCommunicationsInc.Allrightsreserved — JayGreene www.crainsdetroit.com Vol.26,No.19 would be Michigan EMS . billion inassetsfrom the acquisitiononApril30of$1.1 of Troyistinynomore,thanksto nounced thattherelativelynew bled PortHuronbankandan- eral regulatorsshutdownthetrou- Friday, thesamedaystateandfed- raise of$200millionaweekago the purchase,closedonacapital about $100millioninassetsbefore Chairman DavidProvost. around theMidwest,saidCEOand presence andperhapsgrowing plans onestablishingastatewide with promisesofmore,thebank New YorkfinancierWilburRoss, Buoyed byabout$50millionfrom be satisfiedjustdigestingthisdeal. of 10,FirstMichiganisn’tgoingto Port Huronandits22 brought ErnieHarwelltoDetroit. company sponsorshipsthat Patrick, asthestorygoes,was casts beforethe1960season. sor for Goebel BrewingCo. had replacedcross-streetrival growth plan growth Ross backs Financier Harwell asbusinessman:‘Reliable,believable,trustworthy’ banking’s bigleagues First Michiganeyes continue, takeovers to Expect trailof Troubled banks: S The once-tiny First Michigan,whichhad Detroit-based It wasachangeinlocalbeer Incumbent broadcasterVan HUTDOWNS CRAIN’S DETROITBUSINESS CRAIN’S DETROITBUSINESS B Y Detroit Tigers B T Page 22 Y OM B ILL H First MichiganBank ENDERSON Stroh BreweryCo as theleadspon- S sets byafactor creasing itsas- fied byin- east Michigan. six inSouth- es, including Bank HEA CF Bancorp radio broad- Citizens First Not satis- branch- of . have requiredhimtoformabank cept thatfederalregulationswould ed moreinthatFridayclosingex- for buyers. tors andcommunitybankslooking other statebanksclosedbyregula- acquisitions, whichwouldinclude First Michiganembarksonfuture expects toinvestmoremoneyas Ross told put upby keeping itsbranchesopen. ed retainingthe350employeesand had thewinningbid,whichinclud- Troy bank,whichopenedin2007, CEO andChairmanDavidProvost. partofagrowthstrategyoutlinedbyFirstMichigan Bancorp ofPortHuron— A newFirstMichigansignsignalstheTroy-basedbank’sacquisitionofCF age 92ofbileductcancer,also be- icon. Tigers gamesandbecoming an to spendthenext42yearscalling in 1964,hiredHarwell.Hewent on together inBaltimore. briefly donesomebroadcastwork replacement. HarwellandKellhad ommended HarwellasPatrick’s George Kell,waskept,andherec- sidekick, formerTigersslugger Goebel, sohewasfired.Hison-air thought tobetooassociatedwith Crain’s Through theyears: times; howtooffertributes, Play-by-play: F Ross saidhewouldhaveinvest- About afourthofthemoneywas Harwell, whodiedTuesday at Stroh, whichwouldbuyGoebel RWL TO AREWELL , crainsdetroit.com/harwell Crain’s W.L. Ross&Co.L.L.C. MAY 10–16,2010 Ernie Harwell’slifeand H ARWELL last weekthathe Harwell in Page 25 , and statue honoringhimatComericaPark. In 2002,ErnieHarwellstandsnearthe that.” Ross saidthat,we’llleaveitat be seenassoliciting.ButifWilbur ture fundraising.Wedon’twantto lawyer toldmenottodiscussfu- quisitions, Provostsaid:“My fundraising effortstosupportac- later deals,”saidRoss. in moremoneyasit’sneededfor this deal,butwe’llbewillingtoput ship ofFirstMichigan. threshold of24.9percentinowner- holding companyifheexceededa business sideashewasin base- decades and8,500-plusgames. cast careerthatspannedseven assembling ahall-of-famebroad- came asavvybusinessmanwhile Observers ofthelocalbanking When askedaboutfuture “We can’tputmoremoneyin “He becameassuccessfulon the See FirstMichigan,Page22 THE ASSOCIATEDPRESS DAVID DALTON spot andpersonalappearance,” for everyradiospot,television to buildaseparatedollaramount on analacartebasis.Hewas able voice andreputation,tobepaid additional dollars. leveraged hispersonalbrandinto Harwell becamemorepopular,he ly builtintotheircontracts,butas by Harwellandotherswastypical- primary sponsorsofbaseball. beer andcigaretteswerethetwo Chesterfield Kingsintheagewhen did sponsorspotsforStrohand viser formorethan30years. friend, attorneyandbusinessad- Gary Spicer,whowasHarwell’s ball,” saidGrossePointelawyer roughly oneyearafterFerchill we were.” ject. “Butit’sbetterthanwhere the historicredevelopmentpro- veloper JohnFerchill,wholed No,” saidCleveland-basedde- rental units. pied inamixofcondosand tion ofthebuildingishalfoccu- October 2008. ing openedin when thebuild- just fiveunits were closedon rational, deals became more berance of2006 irrational exu- were sold. but fourunits building, all Book Cadillac ums atopthe sale periodforthe63condomini- up witheconomy expected topick Condo sales to halffull Cadillac get help Book Renters “He wasable,becauseofhis Such marketingendorsements Earlier inhiscareer,Harwell The currentmarkcomes “Is itwherewewantedtobe? Today, theresidentialpor- But afterthe At onepointduringthepre- CRAIN’S DETROITBUSINESS B Y See BookCadillac,Page24 D ANIEL See Harwell,Page25 $2 acopy;$59year Book Cadillac D UGGAN ® 20100510-NEWS--0002-NAT-CCI-CD_-- 5/7/2010 6:04 PM Page 1
Page 2 CRAIN’S DETROIT BUSINESS May 10, 2010
gency at Waterford. legal promotion of the drug Topa- Maher of Livingston County, Anas- THIS JUST IN The way it was: 1986 When it opens this fall, Regency max. tasia Savka-Klovski of Washtenaw will offer 40 private rooms and 40 Two Johnson & Johnson sub- County and Virginia-based physi- ■ From Page 1 Throughout our 25th-anniversary semiprivate rooms for short-term sidiaries — Raritan, N.J.-based cian Gary Spivack. year, Crain’s will use this space rehabilitation and long-term care. Ortho McNeill Pharmaceutical L.L.C. David Haron, principal and chair- call the Marriott at Eagle Crest in to look at interesting items from Ciena also plans to break and Ortho-McNeil-Janssen Pharma- man of the False Claims Act prac- past issues. Ypsilanti home Tuesday and ground on a new community in ceuticals Inc. — will pay a com- tice at Troy-based Frank Haron Wednesday as they attend panel West Bloomfield Township bined $81.5 million to resolve Weiner & Navarro P.L.C. represented discussions and listen to pitches It’s great — Jay Greene criminal and civil claims, in a Maher and Savka-Klovski, and for capital from Midwest entre- “ deal announced by the U.S. Depart- said his clients will receive the ment of Justice. preneurs at the 29th annual Michi- fun to just sit “majority share” of the whistle- Jones Lang LaSalle hires John The settlement, which includes gan Growth Capital Symposium. blower settlement. there and a guilty plea and $6.1 million crim- The keynote speakers for the Cullen as vice president At issue in the case was a 2001- inal fine for a violation of the 03 promotional effort marketing symposium, hosted by the Ross watch the (switchboard) light The Detroit office of Jones Lang Food, Drug and Cosmetic Act, also School of Business at the University of LaSalle has hired longtime Detroit Topamax to physicians for “off- includes a $9 million settlement to label” uses. Michigan, are David Brailer of Health up and see what the public real estate consultant John Cullen. whistle-blower claims by Angela Evolution Partners of San Francisco Cullen most recently worked in — Chad Halcom and Kate Mitchell of Scale Venture wants to know. We get instant the Detroit office of Hines Interests Partners of Foster City, Calif., and L.P., which handles property man- the chair-elect of the National Ven- feedback. agement for buildings such as the CORRECTIONS Renaissance Center and the Cole- ture Capital Association. ” Ⅲ A story published on Page 1 of the May 3 edition incorrectly stated man A. Young Municipal Build- Panels include the convergence Bruce McIntyre, publisher Davison State Bank’s net loss for 2009. The story should have said Davi- ing. He was previously property of healthcare and technology; son’s 2009 loss was $986,000. The Oakland Press manager of the Comerica Tower. trends in life sciences; what entre- Ⅲ An item in the People column published on Page 15 of the May 3 edi- From a Nov. 10, 1986, article With Jones Lang LaSalle, Cullen preneurs need to know about tion should have said that Justin Klimko, Steven Ribiat and Jordan sourcing deal. about the newspaper’s In-Touch will be a senior vice president and computerized telephone system, Schreier were named to the board of directors of Butzel Long P.C., De- Thirty-two young companies, will work on facility management, troit, not its affiliated firm, Butzel Long Tighe Patton P.L.L.C. A corrected which recited everything from late leasing and development. will explain their business models election results to soap opera item appears on Page 19. and make pitches for equity fund- summaries to subscribers who — Daniel Duggan Ⅲ An article on page E43 of the May 3 edition suggested that Catholic ing. Registration is available at dialed “976” numbers. It was hospitals leaving downtown Detroit over the past 25 years negatively the door. For information, go to described as more promising than Former drug sales reps win affected Henry Ford Hospital, Detroit Medical Center and community www.michigangcs.com. “videotexting,” a rival Internet health centers. Vernice Davis Anthony, director of the Greater Detroit — Tom Henderson precursor that required a whistle-blower settlement Area Health Council, who was quoted in the story, said that no data ex- computer keyboard hooked up to a television to access information Two Michigan-based former ists to prove direct negative impact to the remaining health care insti- Ciena starts work on stored on a database. sales representatives for a sub- tutions. She said data shows increased emergency department volume sidiary of Johnson & Johnson will re- at Henry Ford, DMC and St. John Hospital and Medical Center, and prob- nursing home in Waterford Twp. home in Waterford Township. ceive most of a $9 million whistle- lems with access to primary care physicians, but that trends in the Southfield-based Ciena Health- The 120-bed facility, at the cor- blower settlement of more than city were already showing stress in the primary care delivery system care Management has broken ner of Telegraph Road and Dixie $81 million for the health care before hospitals closed in the core of the city. ground on a $6 million nursing Highway, will be called the Re- products giant to settle claims of il- Ⅲ A May 3 profile of Wixom-based Rockwell Medical Technologies Inc. should have said that its 2009 revenue was $54.7 million.
May 26-27, 2010
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May 10, 2010 CRAIN’S DETROIT BUSINESS Page 3 Masco finds ‘positive traction’ Jobs/Economy (WellHome). The service is well re- Survival tactics: Expansion, corporate changes ceived,” said Masco Home Ser- vices President Larry Laseter. BY CHAD HALCOM warming to the company’s stock as a former vice president of global “And by (year’s end) we’re look- CRAIN’S DETROIT BUSINESS U.S. housing starts and even home consumer de- ing to be in a total of 25 markets.” prices hint at a recovery. sign at Whirlpool Masco (NYSE: MAS) now says it Is it too early to look for a Masco Starting today, a subsidiary, Corp., and also has 35,000 global employees — Corp. comeback? Masco Home Services Inc., is ex- hired David down by 30,000 from its peak in The Taylor-based maker of panding its WellHome energy effi- Brown as chief 2006. Additional cuts are expected faucets, cabinets, paint products ciency assessment service into procurement of- this quarter, according to Execu- and other home fixtures has seen five new cities in Texas, Virginia, ficer and vice tive Vice President and COO Don- its revenue, employee headcount New Jersey, Georgia and Arizona, president of its ny DeMarie. and analyst expectations go in free for a total of 12 WellHome local supply chain Revenue plunged from a record How stimulus funds are fall for more than three years. markets nationwide. The company last December. $12.8 billion in 2006 to $7.8 billion But some corporate changes are hopes to double that branch by “We’ve had in 2009. driving jobs, Page 14. helping Masco (NYSE: MAS) sur- Laseter year’s end. enough positive But first-quarter 2010 sales were vive in a much smaller home con- The company also hired its first traction so far in these markets to struction market, and analysts are chief design officer, Charles Jones, go forward with plans to expand See Masco, Page 25
Company index These organizations appear in this week’s Crain’s Website gives Detroit Business: A123 Systems ...... 15 A Jewish Apparatus Solutions ...... 24 Federation of Benzinga.com ...... 3 Metropolitan Building Industry Association of Michigan ...... 16 local artwork Detroit Chrysler Group ...... 13 program Compact Power ...... 15 helped keep Detroit Artists Market ...... 3 Jason Detroit Community Health Connections ...... 15 Raznick from Detroit Regional Chamber ...... 4 moving Detroit River International Crossing ...... 4 broader brush Benzinga.com Donnelly Penman & Partners ...... 22 to Chicago. Dow Kokam ...... 15 Instead, the Economic Alliance of Michigan ...... 9 Site already catches financial First Michigan Bank ...... 1 media Ford Motor ...... 13 company Fourmidable Group ...... 24 eye of film set designer moved last Fusion ...... 23 week into General Motors ...... 13 BY SHERRI WELCH new quarters Gyro Creative ...... 3 CRAIN’S DETROIT BUSINESS in Bingham Farms. Henry Ford Medical Group ...... 9 The Detroit Artists Market today plans to DAVE LEWINSKI Ideal Technology ...... 8 launch a new website designed to increase Jewish Federation of Metropolitan Detroit ...... 3 Johnson Controls ...... 15 the visibility of local artists’ works — to the Linamar ...... 13 public, businesses and visiting film crews. Macomb/St. Clair Workforce Development Board . 15 In development for two years, the site at Masco ...... 3 www.detroitartistsmarket.org/artists al- Max Broock Realtors ...... 24 ready includes pictures of several pieces New troops in Michigan Department of Community Health ...... 10 from each of 140 lo- Michigan Department of Transportation ...... 16 cal artists from Michigan Osteopathic Association ...... 12 To the among the market’s Michigan Primary Care Association ...... 15 “ 371 members, and Michigan Recovery Office ...... 14 artist DAM plans to add MN Group ...... 8 more. brain-drain battle Peoples State Bank ...... 22 community, Visitors can Planning Perspectives ...... 13 browse local artists Plante Moran Cresa ...... 16 Private Bank, Michigan ...... 22 by name or by the this is Jewish Federation joins efforts to retain young adults Procurement Technical Assistance Centers of Mich. 8 type of visual art- Realcomp II ...... 24 work they seek: huge. BY SHERRI WELCH Southeast Michigan Community Alliance ...... 15 ” paintings, pho- Sports Management Network ...... 25 CRAIN’S DETROIT BUSINESS Paul Trulik, Detroit tographs, sculptures They’re very hungry for Stereo Interactive & Design ...... 3 Artists Market and more. Just three months ago, Jason Raznick was “ St. Joseph Mercy Health System ...... 9 “Our interest is re- considering moving his fledgling financial dynamic programming and St. Mary Mercy Hospital ...... 9 ally in helping to facilitate the relationship market news and analysis service compa- Total Door ...... 25 with local artists,” said DAM Executive Di- ny Benzinga.com to Chicago so he could meeting people from Trinity Health ...... 9 rector Nancy Sizer. connect with potential employees. WireKnitz ...... 18 “It’s not a direct-sale site — we realized “I knew there were knowledge workers different cultures — Wireless Source ...... 4 that monitoring and updating (the inventory here in Southeast Michigan, but it’s hard on) a commerce site was too much.” to find them,” Raznick said. the things you get in If an artist or work piques a visitor’s inter- “In Chicago, when I go downtown, I est, he or she can click through to the artist’s know I’ll see people I’m used to seeing. In larger cities. website or contact DAM to reach the artist ” Detroit, there’s not a recognized area Jordan Wolfe, Jewish Federation Department index or arrange a studio visit, she said. where young people congregate.” of Metropolitan Detroit AT&T Foundation provided a $16,400 compet- A friend told Raznick that before he BANKRUPTCIES ...... 24 itive technology grant to fund the effort, and made the move he should talk with the Jewish tractive to young adults, making Detroit a place BUSINESS DIARY ...... 20 an anonymous donor gave $1,250. Detroit- Federation of Metropolitan Detroit, which in Feb- they want to live, work and play. based Gyro Creative provided pro bono techni- ruary hired another young professional, Jor- Wolfe connected Raznick to a number of local CALENDAR ...... 20 cal assistance to structure and design the dan Wolfe, to develop ways to connect internal- IT professionals he’d met through personal net- CAREERWORKS ...... 18 site, and Stereo Interactive & Design in Ann ly and to stop brain drain. working, and to subsidized office space for a CLASSIFIED ADS ...... 20 Arbor developed it. That effort — dubbed CommunityNext — year provided by the Farbman Group in its Bing- KEITH CRAIN...... 6 The exhibition committee of DAM is using aims to connect young adults with job and in- LETTERS...... 6 See Website, Page 24 ternship opportunities and create a lifestyle at- See Brain drain, Page 23 MARY KRAMER ...... 7 OPINION ...... 6 Crain’s Newsmakers unscripted Health Care Extra Newsletter PEOPLE ...... 19 Sign up at crainsdetroit.com/getemail THIS WEEK @ Peter Karmanos Jr. on the real reasons RUMBLINGS ...... 26 Compuware Corp. moved downtown. See the video for a bimonthly roundup of health care WWW.CRAINSDETROIT.COM and four others at www.crainsdetroit.com/25th. industry news. STAGE TWO STRATEGIES ...... 4 WEEK ON THE WEB ...... 26 20100510-NEWS--0004-NAT-CCI-CD_-- 5/7/2010 4:56 PM Page 1
Page 4 CRAIN’S DETROIT BUSINESS May 10, 2010
StageTwo Strategies A weekly look at problem-solving by second-stage companies. coffee!! StageTwoStrategies is a weekly feature that analyzes a To sign up for the twice-monthly recent business decision by a second-stage company. e-newsletter, go to crainsdetroit.com/getemail. The For more second-stage coverage, go to Second Stage print section will appear in Crain’s on the opportunity!! crainsdetroit.com/secondstage. third Monday of each month. interested?? THE WIRELESS SOURCE INC. Location: Bloomfield Hills tomers,” Sullivan said. “If they feared that it wouldn’t be able to Description: Buys used mobile demand it, the carriers will inte- properly manage the system. franchise?? phones from retailers and service grate our service.” “We’re a back-end processing providers and resells the used or The Wireless Solution then company,” he said. “We are now refurbished phones to retailers in hired a soft- caught up doing something that emerging markets like Africa, ware design we weren’t naturally doing be- Contact us at China and Mexico. firm to create a fore, and we were afraid we’d President and CEO: Bob Sullivan Web-based ser- completely miss the mark.” (517) 913-1987 or Founded: 1999 vice that lets re- Expert opinion: Paul Bensman, Employees: 45 tailers look up president of Southfield-based re- [email protected] Revenue: $13 million in 2009, the worth of a tail consulting firm Details in Re- projected $18 million in 2010. specific used tail Inc., said Web-based solutions Problem to be solved: The aver- phone, then use are becoming the lifeblood of age consumer replaces his or her it to offer a growing businesses. www.biggby.com mobile phone every 18 months. trade-in rebate “Business is increasingly going Other than the occasional promo- Sullivan to the customer. to be based around the Internet,” tion, incentives to recycle are The retailer then sends the he said. “If you’ve got a good idea rare, said Bob Sullivan, president trade in to The Wireless Source, or great service, find ways to in- and CEO of The Wireless Source. which sells it in international vest in it on the Web.” And without customer demand, markets. The Wireless Source’s system retailers see no need to offer recy- The company began rolling out to incorporate a trade-in at the cling services. the free service in late 2008, and point of sale is key to getting it So by 2008, The Wireless it’s currently available at more widely accepted, he said. Source’s revenue reached a than 7,000 retail locations nation- He also said the self-funded plateau. ally. slow rollout of its service is be- Our cultural places “Our challenge was, and is, get- More than 60 percent of the coming more common among ting providers to see us as a valu- company’s revenue comes from smaller businesses. offer outdoor spaces. able service,” he said. “There’s those Web-based acquisitions, “Business needs capital to plenty of demand as consumers Sullivan said. grow, and if the banks aren’t look- are constantly upgrading phones, Risks and considerations: The in- ing at you, self-funding is your but recycling has remained in the vestment was large for the compa- only option,” he said. “Working Complimentary concierge planning. back end of the process without ny — too large in fact, Sullivan out-of-pocket is a necessity now to any consumer involvement. said. He estimated the cost of de- continue growth.” Entertainment, events, meetings and more. “We hit a point where we just veloping and rolling the system Growing slowly also likely couldn’t move the needle,” he out on a large scale at $1 million. helps The Wireless Source identi- said. “The status quo wasn’t The company ended up creat- fy and fix problems with the sys- working anymore, and we could- ing the system and rolling it out to tem more efficiently, he said. the n’t sit back and wait for growth to interested customers slowly, rein- The Wireless Source’s business cultural happen. We had to make a proac- vesting returns into future roll- model could apply to other prod- tive decision.” outs. ucts such as netbooks and e-read- concierge Solution: Sullivan hired West “The key is leveraging every- ers. a program of the cultural alliance Bloomfield Township-based con- thing we have to create scale,” “You have to look at other mar- of southeastern michigan, sulting firm Applied Innovation Al- Sullivan said. “We literally have kets to continue growth,” he said. a 501(c)(3) organization liance L.L.C. to come up with possi- to align it and fund it to the activi- “Business can hit a saturation ble solutions. ty.” point. There’s only so much mar- “We realized that we needed to The Wireless Source isn’t an IT ket to be had.” engage the (mobile) carrier’s cus- company, and Sullivan initially — Dustin Walsh www.theculturalconcierge.org If your second-stage company has recently made a tough business decision, contact Michelle Darwish, entre- 248.766.5599 [email protected] preneurship editor at Crain’s Detroit Business, at [email protected]. DRIC tops research group’s ‘most needed’ list BY BILL SHEA Other projects listed include lion budget deficit and the Michi- CRAIN’S DETROIT BUSINESS widening I-94 to eight lanes from gan Department of Transportation is six in Wayne facing an $84 million shortfall in A report released today says a County, im- its ability to match federal fund- proposed publicly owned Detroit WHO PAYS? proving 18 ing. River crossing leads a list of 50 Toll or payments? miles of I-75 The agency last month an- transportation projects “most Private sector is between Eight nounced it was delaying more than needed to support economic split on how to get Mile Road and 600 road and bridge projects be- growth in the state.” paid for bridge M-59, and con- cause of the funding problems. The statewide study, based on work, Page 21 struction of a The rankings are based on transportation and economic trends light rail line TRIP’s rating system of short-term in Michigan, comes from a nonprof- WEB EXTRA on Detroit’s economic benefit such as job cre- it Washington, D.C.-based trans- Woodward ation, improvement in the condi- portation research program called For a list of area road projects: Avenue. tion of the transportation facility The Road Information Program and in- crainsdetroit.com Most of the and long-term improvement in cludes roads, highways, rail, transit /roadprojects projects are Michigan’s competitiveness. systems and border crossings. under way or TRIP based its report on data The Detroit Regional Chamber was in planning stages. Some, such as gathered from the Michigan De- scheduled to host TRIP’s presenta- the proposed construction of a partment of Transportation, South- tion of the report today. larger tunnel between Detroit and east Michigan Council of Govern- The proposed $5.3 billion Detroit Windsor, remain conceptual. ments, Grand Valley Metro Council, River International Crossing project The report cited a 2007 Federal Tri-County Regional Planning Commis- that will connect Ontario’s High- Highway Administration analysis sion, U.S. Department of Transporta- way 401 to I-75 led the list because that estimated that every $1 billion tion, Federal Highway Administra- its backers say it will create 10,000 in highway investment supports tion, U.S. Bureau of Transportation construction jobs and preserve or 27,800 jobs, including 14,000 unre- Statistics and U.S. Census Bureau. create 25,000 jobs locally. It’s also lated to construction. TRIP was founded in 1971 to lob- forecasted to save or create 97,000 The study is released at a time by for transportation policies and to jobs nationally. when the state is facing a $1.5 bil- boost economic productivity. DBpageAD.qxd 4/20/2010 11:43 AM Page 1
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Page 6 CRAIN’S DETROIT BUSINESS May 10, 2010 OPINION LETTERS City’s choice: Invest or regress We were lucky to Editor: Today’s Detroit is a different Crain’s Detroit Business Great article (Mary Kramer: world. welcomes letters to the editor. “Detroit needs to learn the power of Too many Detroit residents re- All letters will be considered for ‘and,’ ” April 12). publication, provided they are ceive food stamps, welfare, govern- I was in attendance at the urban signed and do not defame ment-paid housing and utilities, have Ernie Harwell agriculture event and was embar- individuals or organizations. free health care, free school lunch- rassed by the few disruptive mem- Letters may be edited for length es, child-raising assistance and n 1994, as lawmakers debated any state support for a new bers of the audience. Mr. Hantz and clarity. other forms of government assis- did a remarkable job in remaining tance. Write: Editor, Crain’s Detroit home for the Detroit Tigers, veteran broadcaster Ernie professional and respectful to In summation, today’s Detroit Harwell spoke at a sports-themed luncheon held by Business, 1155 Gratiot Ave., I those who were not. Detroit, MI 48207-2997. residents have absolutely no mo- Crain’s Detroit Business. If we do not encourage the “for- tivation to labor in a garden un- E-mail: [email protected] The question of state financial help for a new ballpark had profits” to invest in Detroit, we der the hot sun, let alone in a been framed publicly as a battle between De- will continue to regress and more kitchen. will abandon the city. Detroit. (Other Voices: “Urban The Eastern Market offers a fab- troit and outstate Michigan. Love the power of being an farming should take root here,” ulous selection of fruits, vegeta- That’s wrong, Harwell told our audience: “and” town. April 19.) bles and produce, yet few Detroi- “The Tigers are a state treasure. Watch the Betty Priskorn In 1942, the Greatest Generation ters patronize same. Why? buses come from all over. People will sit on a Executive vice president was at war fighting foreign ene- The devil is in the details: Pri- The Guidance Center mies, and food was rationed. To bus for hours coming from the U.P. for a game. vate farmers do not accept De- properly feed their families, De- troit’s main currency — food Michigan loves the Tigers.” Urban farming unlikely troit residents working full-time stamps. Nor will future hobby gar- Well, Michigan loves Ernie Harwell, too. to work in Detroit jobs grew and canned fruits and deners. The man who that day in 1994 quoted poet- vegetables in their backyards. The No doubt your dreams are well- Harwell ry by Tennyson in the same speech as RBI sta- Editor: Greatest Generation frowned intentioned. However, reality has I find it almost insulting to the upon accepting handouts and em- tistics was a master of his craft and beloved by Tigers fans and a way of waking the daydreamer. “Greatest Generation” to have braced self-reliance as a necessity Russell Zahodnik baseball lovers — even some who called teams other than the 1940’s Detroit compared to today’s to succeed. Rochester Tigers their favorite team. As Bill Shea reports on Page 1, it was a business reason — a chance in beer company sponsorships — that brought Harwell to Detroit in 1960. What a lucky break for Detroit. Rest in peace, Ernie. TALK ON THE WEB Bobb’s authority needs to be clear From www.crainsdetroit.com a fair and appropriate way to weed Re: Teach for America returning Reader responses to stories and Six of the large field of gubernatorial hopefuls spoke in De- out the inefficient. If a nonprofit blogs that appeared on Crain’s troit on Friday for the Eight Mile Boulevard Association’s an- to Detroit Public Schools can’t manage to let the IRS know the nual fundraiser. This is great news! website. Comments may be basics of its business, what hope does edited for length and clarity. Republicans Mike Cox and Pete Hoekstra were unable to VinceDetroitTFA a donor have of knowing? attend, but the audience of business owners, nonprofit execu- Imagine these motivated ener- R. Sue Dodea tives and city and suburban government leaders heard from getic and enthusiastic young Re: UM researcher to test teachers sprinkled among the ex- Re: Michigan to create three Republicans and three Democrats. isting educators. This can have a stem cell treatment for Alzheimer’s As reported on Page 26 and on www.crainsdetroit.com, the very positive ripple effect, not the I think the work Dr. Feldman is high-risk insurance pool six were grilled by Southeast Michigan’s “Big 4” elected lead- least of which will be the resulting doing is absolutely amazing and What happens when the federal ers. (The Big 4 seemed to hope for more specifics from the can- increase in interest among our will make critical changes in the lives money runs out in three years? Is of so many. I’m in awe of her exper- Michigan on the hook for 100 per- didates; now they know how journalists feel.) school-going kids to actually want to learn. tise and what this can mean for cent of the costs? The candidates pledged to add more urgency to problem- Chris Conn our state. Karen Yancura solving in Lansing. They also supported investments in higher 190778 This is one reason why health education and, in Detroit, ranged in the fervor of support for Re: Sam Riddle convicted in assault case coverage is so expensive. It doesn’t Emergency Financial Manager Robert Bobb. Re: Ford is title sponsor let private enterprise offer solutions I’ll miss Sam and his antics. and let individuals select what they That’s another reason state lawmakers need to clarify ex- Timothy Dinan of Arts, Beats & Eats festival isting legislation authorizing the work of people like Bobb. need. Good work, Ford! Way to give JG Bobb won a round last week in his legal battle with the De- Re: SEMCOG delays back to the community and help keep a fantastic event thriving. troit Board of Education over his authority to make decisions commuter rail service Re: DRIC questions (mostly) answered on academic programs. His argument: If a dime touches a pro- The Truth Oak Park, Ill., Village Manager Ambassador Bridge traffic has gram, he has authority over it. We agree. (and former Ferndale Mayor) Tom Re: Some nonprofits could dropped for 10 years. How can these Detroit is not the only district to teeter on the cliff of finan- Barwin is probably laughing right studies predict a sufficient future in- cial ruin. The Legislature should clarify the authority to stop now. lose tax-exempt status wasting time and money on legal challenges. Robert Carr This minimal amount of work is See Talk, Page 7 KEITH CRAIN: Detroit is never going back to ‘normal’ I still hear people, sincere peo- every car sold in Ameri- It’s never going to be A few decades ago, education computers and information tech- ple, who talk about Detroit and ca. like it was. Many of the didn’t matter because you were nology. But we’re not sure exactly Southeast Michigan getting “back It’s great to have won- companies that domi- headed for the assembly line for 30 what the next big thing is, so that’s to normal.” derful memories about nated our landscape or 40 years. Those days are over; why education is so important. I don’t always know what they your hometown, but it’s will be replaced by oth- those jobs are rare. And education jobs seem to be think “normal” was in our com- a different world, a dif- ers. Companies we It’s ironic that almost a century growing, too. The city and region munity in years past. Some people ferent city, a different don’t even know about ago, people left the South for De- will probably be unrecognizable in still tell me all about what it was region. today will become the troit and its good-paying manufac- a few decades. If there ever was a like before the riots in the late ’60s. Detroit has been household words of to- turing jobs. Today, those jobs are community that had to be ready They muse about Hudson’s as if changing ever since it morrow. mostly in the South. Every time a for change, it’s ours. they don’t realize that the flagship was first settled by the And we’re going to new plant is built, it seems to be We can’t stay the way we are, so downtown store was knocked French in 1701. It’s have to make sure that south of the Mason-Dixon line. change is inevitable. If you believe down a few years ago. changing today and it we educate our youth to There are some hints about to- that the glass is half full, then this Other people tell me about the will continue to change; be flexible and educated morrow’s dominant industries in is an exciting time. We know it’s glorious 1950s when Detroit ruled that’s the good news — and the bad enough to be ready to work in all Southeast Michigan. Sure, health going to be different. Change is the world and we made just about news — all rolled up in one. sorts of environments. care is going to be important. And here. 20100510-NEWS--0007-NAT-CCI-CD_-- 5/7/2010 4:04 PM Page 1
May 10, 2010 CRAIN’S DETROIT BUSINESS Page 7 MARY KRAMER: Entrepreneurs lead way in quest for jobs
I love Garden Fresh’s salsa, and And the recession share the same con- sister Emily, focusing on Detroit- “bad” behavior. But at 1 million I’m fascinated by the home-grown may have actually cerns about job securi- centric products. Late last year, page views a week, it’s generating salsa company in Ferndale that prompted more people ty as their parents, nor they opened their own City Bird $1 million in annual advertising makes the refrigerated product. to become entrepre- do they place such high shop on Canfield in Midtown. revenue, a book deal and a TV So I am looking forward to hear- neurs, according to a value on lifelong ca- Ben Kazez founded Mobiata show to follow. ing the company story on Tuesday survey released last reer, or attachment to L.L.C. in Ann Arbor to create mo- Best of all, Bator’s attorney/fa- from its COO, John Latella. week by Kelly Services an individual employ- bile applications. His “app” to ther told me at the party the com- He’s one of more than a dozen Inc. in Troy. er,” Kelly general man- track air flights worldwide, with pany employs his other son “who speakers at a forum Crain’s is Almost one in five of ager Mike Webster said gate information, itineraries and hasn’t made a call home for money holding with Walsh College for the more than 130,000 in the company’s press flight-delay information produced all year.” “second-stage” companies. This people globally re- release. $1 million in revenue last year. week’s event is ecumenical; Walsh sponding to the survey Young entrepre- Honoree Benjamin Bator Mary Kramer is publisher of is our partner, but we’re holding it said they planned to neurs were strong at launched TextsFromLastNight.com Crain's Detroit Business. Catch her at the Michigan State University start their own busi- our party last week during final exams week at Michi- take on business news at 6:10 a.m. Management Center in Troy. (For nesses, and 18- to 29-year-olds had honoring Crain’s 2010 class of 20 in gan State last year. It features real- Mondays on the Paul W. Smith show details, check our Web site, the greatest concentration. their 20s. life text messages from around the on WJR AM 760 and in her blog at www.crainsdetroit.com/events.) “We are seeing a new mindset Honoree Andrew Linn started a world; they tend to focus on peo- www.crainsdetroit.com/kramer. The forum is part of our year- among many workers who do not handmade craft business with his ple’s embarrassing or downright E-mail her at [email protected]. long focus on “second-stage” com- panies — those that have survived startup stage. If Michigan’s 55,000- plus stage-two companies added just two jobs apiece on average, we’d quickly chip away at the mil- lion-job loss in Michigan over the past decade.
TALK CONTINUED ■ From Page 6 crease to justify having two bridges? Motown Expat
Re: EMU’s tuition, dorm rate freeze: There is no way to stop tuition increases, but students and their parents can take a proactive ap- proach to applying for as many col- “Our employees really took to the concept lege scholarships as they can. Monica that they could lower their copays and deductibles by leading healthier lives.”
Re: NFIB signs petition to exempt Maureen Sisco state from federal health care act: Human Resource Director If NFIB was truly a representa- Nino Salvaggio International Marketplace tive of small business, it would em- brace health care reform. The cur- rent health care costs are most oppressive and harmful to all Michigan businesses. billm Re: Bar on ethics needs to be higher: Can changing your insurance plan help change Like the frog who slowly boils to death realizing too late just how the way your employees take care of themselves? hot the water has gradually be- come, Detroit, this state and our country are waking up to find It did for Nino Salvaggio. we’re quickly being stewed in a broth we helped make by failing to SM hold our various leaders to higher When it was introduced in 2006, Healthy Blue Living was the fi rst plan that rewarded standards. employees for making healthier choices. Today, over 100,000 Healthy Blue LivingSM members Chris Conn have lowered their insurance costs by improving their health. And that’s great news for businesses like Nino Salvaggio International Marketplace in Troy. CRAIN’S SEEKS WOMEN TO “It’s been an amazing plan for us,” says Maureen Sisco, Human Resource Director at Nino Salvaggio. “Our employees really took to the concept that they could lower their copays WATCH NOMINEES and deductibles by leading healthier lives. On the business side, we have seen employee Do you know a woman who is absenteeism drop, productivity go up and long-term health costs that are more manageable.” poised to make a difference in her company or industry in the next Blue SM year? Or one who had an innovative Find out how Healthy Living can transform the way your business looks at health idea or developed an innovative coverage. Visit MiBCN.com/HealthyBlueLiving and learn more today. practice? If so, she could be a candidate for Crain’s Detroit Business’ “Women to Watch,” which will be published Sept. 6. We’re looking for businesswomen of accomplishment at all career stages. Nominations should focus Want more great ideas for healthier living? on a specific current activity, rather Join the conversation at aHealthierMichigan.org. Leading Michigan to a healthier future.SM than career accomplishment over an extended period of time. Visit www.crainsdetroit.com/nominate Blue Care Network of Michigan is a nonprofit corporation and for the online nomination form. The independent licensee of the Blue Cross and Blue Shield Association. deadline is June 7. 20100510-NEWS--0008-NAT-CCI-CD_-- 5/7/2010 4:05 PM Page 1
Page 8 CRAIN’S DETROIT BUSINESS May 10, 2010 Procurement centers help companies land $3M in defense work
BY CHAD HALCOM Ideal Technology, a tool and die door. Hopefully that way we get CRAIN’S DETROIT BUSINESS company that has made plastic in- some history going and quote on a We just wanted to make sure we didn’t jection components and prototype few other things,” he said. At least 38 metro Detroit compa- “ components, has 18 employees New contracts for the four local nies landed first-time government live and die by automotive anymore. compared with more than 60 in PTACs serving Southeast Michi- contracts worth nearly $3 million ” 2006. Past automotive customers gan ranged in size and purpose. over the past seven months, accord- Ray Krakowski, Ideal Technology include the now-defunct Collins & The largest was a $2.2 million U.S. ing to organizers of a new state ini- Aikman Corp. and Plastech Engi- Department of Veterans Affairs tiative to track new businesses en- neered Products Inc. award to Romulus-based MN Group tering the defense industry. under a new directive to begin to get away from the automotive After becoming a client of the Inc. to provide ambulance services The Procurement Technical Assis- compiling the data. (industry). Not completely. We just Macomb Regional PTAC in War- for the John D. Dingell VA Medical tance Centers of Michigan, nonprofit The PTAC has assisted small wanted to make sure we didn’t live ren, Ideal landed two small con- Center in Detroit. business assistance centers co- businesses understand the defense and die by automotive anymore and tracts with the U.S. Navy and the At the opposite end were awards funded by the Michigan Economic industry and qualify for contracts could diversify into a few new mar- U.S. Department of Defense last fall. of less than $1,000 each, said Beth Development Corp. and the federal since its inception, but it only be- kets,” said Ray Krakowski, pur- They’re worth less than $10,000 Cryderman Moss, program director Defense Logistics Agency, report gan compiling data on first-time chasing manager for Shelby Town- combined, he said, but it’s a start. of the Macomb Regional PTAC at those totals since the start of the successes this year. ship-based Ideal Technology Inc., one “We just looked at small ones, Macomb Community College, which state’s current fiscal year, Oct. 1, “We knew we were never going of the new contract recipients. for now, just to get our foot in the tallied the most first-timers at 25. “Some of these contracts are pretty small,” Cryderman Moss said. “But one of the things we in- still into our client businesses is to start out small and make sure you know all the intricacies of con- tracting first and find a need that fits your core competencies. Then you prove yourself, and build.” Michael Talley, president of MN Group, said his company intends to do just that. MN’s Medic One Ambulance Service and Metro El- der Care divisions hold other con- tracts for private nursing home transport as well as emergency medical services for the city of Highland Park and a supplemental service contract with Inkster. The contract, he said, “will be what keeps us in business” and re- tain jobs for its nearly 120 workers. “People think a business like ours would be recession-proof, but when home values fall it affects how much local governments can spend on contracts, and our pri- vate customers hurt as well,” he said. “We’ve already looked at oth- er federal opportunities afterward, because of this, although nothing yet has been within our service area (in Wayne County).” Cryderman Moss estimates that more than half of the 25 first-time contract recipients were mostly automotive suppliers, like Ideal Technology, looking for customers in new industries. The PTAC of Schoolcraft College tallied nine first-time contract awards between October and April that went to businesses in its Oak- land, Washtenaw and Livingston county service area, followed by two awards to clients of the Down- river Community Conference PTAC in Southgate and one con- tract and a subcontract award to client companies of the Wayne State University PTAC in Detroit. Helping an American icon Outside of the MN Group con- tract, nearly all were initial awards become a global player for 40 years. of $100,000 or less, according to pro- gram directors at those centers. Cryderman Moss said she was Radio Flyer has been growing up with kids for almost a century. And for decades, pleasantly surprised at the Macomb we’ve rolled forward with them, pulling together the resources they need to do participation rate and will have to revive her center’s goal of five first- business around the world, including financing, treasury services, trade and foreign time recipients in each quarter. exchange hedging. Working with you, our dedicated client manager can bring “It used to be that, because of the difficulties associated with getting together the team and solutions to keep your business moving in the right direction, into contracting, not everyone was too. Call 1.866.708.3163 or visit bankofamerica.com/businesssolutions interested in getting started ver- sus waiting out the cycle in auto- motive. So getting only five compa- nies per quarter was a very reasonable goal,” she said. “But we “ Bank of America Merrill Lynch” is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are exceeded it considerably. I’m very performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by pleased with that, and I think it’s investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, Banc of America Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, which are both registered broker-dealers and members of FINRA and SIPC, and, in other jurisdictions, locally registered entities. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured • directly because of the automotive May Lose Value • Are Not Bank Guaranteed. ©2010 Bank of America Corporation. AR451S2 downturn.” Chad Halcom: (313) 446-6796, [email protected] 20100510-NEWS--0009-NAT-CCI-CD_-- 5/6/2010 5:14 PM Page 1
May 10, 2010 CRAIN’S DETROIT BUSINESS Page 9 Extra
People