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www.crainsdetroit.com Vol. 28, No. 45 OCTOBER 29 – NOVEMBER 4, 2012 $2 a copy; $59 a year
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Page 3 WORLD SERIES Insurance chief works out State jobs Blue Cross payment details bank may University Research In the ALS stem not be cell trials may come to Ann cards open to all Arbor, PHOTO/THE ASSOCIATED PRESS Page 11 Owners of Tigers, Giants made Change concerns fortunes far from ballparks staffing firms BY SHERRI WELCH Crain’s Lists One was a speedy minor-league second base- CRAIN’S DETROIT BUSINESS man with a bum knee who took a gamble on A talent website the state re- Largest business insurance pizza becoming an American staple. The other launched in mid-October includes agencies, Page 23 was a 24-year-old taking over his dad’s modest bells and whistles like a career in- financial retail brokerage firm on Wall Street. vestment calculator enabling peo- Today, Detroit’s Mike Ilitch and San Fran- ple to weigh their investment in Largest automotive higher education against the earn- cisco’s Charles Johnson are billionaire titans of aftermarket parts suppliers, ing power of various careers. their industries — discount pizza and mutual But the site’s second iteration — Page 24 funds, respectively. And the baseball teams at www.mitalent.org, which re- they have come to own became World Series ri- placed the Michigan Talent Bank This Just In vals. on Oct. 16 — also includes a provi- Their business careers were born of the late sion that has alarmed some local staffing companies. Fisker asks judge to delay 1950s, the Eisenhower era of staid gray flannel Concerns from job seekers and suits, crew cuts, pompadours and saddle shoes. employers prompted the state to A123 Systems auction Today, their companies are sophisticated block recruiters and staffing com- Fisker Automotive Inc., global operations. panies from viewing job seeker which has plants in metro De- How they rose to become two of America’s profiles on the site. The policy troit, has asked a bankruptcy change came after job seekers re- judge to delay the auction of richest men and pro sports team owners, and ported aggressive recruiters were electric car battery maker how they oversee those franchises, are as dif- shopping their resumés to employ- A123 Systems Inc. ferent as they are similar. ers without their knowledge. “A hurried sale process will Turn to Page 32 to learn how Ilitch came to In addition, employers expressed be damaging to the estates own the Detroit Tigers, how Johnson acquired concerns that staffing firms were and deprive creditors of value the San Francisco Giants, and how each man competing with them for the best that may be realized through candidates. made his fortune. higher and better offers,” See Talent, Page 30 Gregg Galardi, a Fisker attor- ney, said in court papers filed JEFF JOHNSTON/CDB Friday in Wilmington, Del. Fisker, which has plants in Livonia and Romulus, seeks an extension of at least U.S. slump prepped suppliers for Europe slide 30 days in the bid deadline, auction date, and related BY DUSTIN WALSH fects of the eurozone recession are the planned reduction of more dates and deadlines in the CRAIN’S DETROIT BUSINESS forcing automakers to make deci- than 800 workers, executives and bidding procedures request, sions on clo- experts say the supplier fallout is court papers show. The European economic crisis sures, job cuts next. A123, the recipient of a is hitting home for Southeast and reduced or- But corporate leaders can lean $249 million federal grant, Michigan-based automotive sup- ders. on contingency plans developed said it would sell its automo- pliers. But some of the lessons For suppliers, during this continent’s downturn. tive business assets to Mil- learned during the North Ameri- that ultimately Auburn Hills-based TI Automo- waukee-based Johnson Con- can downturn are expected to soft- affects bottom tive LLC operates 50 plants and trols Inc. in a deal valued at en the blow. lines, and sup- three technical centers in Europe, $125 million. A123, based in In Europe, the deepening crisis pliers are taking including cash-crunched Spain Waltham, Mass., listed assets is causing buyers to avoid dealer- action to stay and Italy. Forty-five percent of TI’s of $459.8 million and debt of ships, with the auto market on ahead of the col- revenue comes from Europe. Kozyra $376 million as of Aug. 31 in track to see its biggest drop in 19 lapse. But Bill Kozyra, chairman, CEO KENNY CORBIN Chapter 11 documents. years in 2012, according to the After Ford Motor Co.’s announce- and president of TI, said the sup- Kelly Services’ Kirk Hanna says the — Bloomberg News Brussels-based European Automobile ment last week of the closure of state’s new talent website lets Kelly Manufacturers’ Association. The ef- two European plants in 2014 and See Suppliers, Page 31 post jobs but not search for workers. Does Your Ad HIT the Mark? Measure the effectiveness of your ads FREE OF CHARGE in the Nov. 12 issue of Crain’s Detroit Business • AD CLOSE: NOV. 1 For more information, please contact Marla Wise at 313.446.6032 or email [email protected] NEWSPAPER 20121029-NEWS--0002-NAT-CCI-CD_-- 10/26/2012 5:16 PM Page 1
Page 2 CRAIN’S DETROIT BUSINESS October 29, 2012
MICHIGAN BRIEFS Meijer reportedly plans major rolling furlough April 30 and ex- tended that on Aug. 30. makeover of ‘dated’ headquarters Dow: Impact of plant closures, restructuring TBD The plant received a $151 mil- The corporate presence of retail lion grant from the U.S. govern- giant Meijer Inc. in West Michigan It could be weeks or months before the impacts of elsewhere. Dow said the job cuts amount to 5 per- ment and also invested $151 mil- soon could undergo a major over- a planned restructuring by Midland-based Dow cent of its workforce worldwide. The company ex- lion of its own money in the plant, haul. The company’s “dated” cor- Chemical Co. are announced, a company spokesman pects to save about $500 million annually by the end according to the Grand Rapids porate headquarters in the Grand said last week. of 2014. Dow also plans to slash capital spending and Business Journal. Rapids suburb of Walker soon will Dow plans to close a diesel particulate filters oper- investments, saving another $500 million. The plant, expected to create be transformed into a “modern ... ation, which consists of two plants in Midland, com- All told, Dow expects to save $2.5 billion. 300-400 jobs by 2013, got tax breaks cohesive corporate campus,” al- pany spokesman Kyle Bandlow told MLive.com. Late Tuesday, the company issued its third-quarter from state and local governments, beit with a road running through Michigan operations total more than 30 plants, cen- earnings report, which had been expected to come out according to the newspaper. Al- its center, an official for the city of tralized research and development operations and Thursday morning. It reported a nearly 40 percent though the furloughs are unpaid, Walker told MiBiz last week. 550 buildings on 1,900 acres. drop in net income to $497 million, or 42 cents a share, employees are eligible to receive Meijer has filed plans with the Dow plans to eliminate about 2,400 jobs and close from $815 million, or 69 cents, in the same quarter last unemployment benefits and their city to renovate portions of its ex- roughly 20 plants as part of a restructuring aimed at year. Revenue dropped 10 percent to $13.64 billion, led regular health insurance benefits. isting headquarters building and enduring slowing economic growth in Europe and by a 10 percent decline in Europe. Workers still maintain around another office building south of 85 percent of their regular monthly the intersection. Meijer officials compensation, the release said. LG don’t deny the plans but declined Health Partners, plus hospitals in ter startups,” the ePrize Inc. founder hicles has led South Korean bat- Chem does not plan to use federal to discuss them with MiBiz. Cadillac and Grayling. Adding and managing partner of Detroit Ven- tery maker LG Chem to delay the grant money to pay for idle time. Metro Health to the Trinity Health ture Partners told MiBiz. start of production at its Holland fold would enable both to better At an Economic Club of Grand plant, reported Automotive News, Find business news from Trinity Health CEO ‘absolutely’ compete in West Michigan against Rapids luncheon last week, Linkn- an affiliate publication of Crain’s around the state at crainsdetroit interested in Metro Health market leader Spectrum Health. er argued for a more entrepreneur- Detroit Business. Production at the .com/crainsmichiganbusiness. Metro Health President and CEO ial climate. “I think that it isn’t De- lithium-ion battery plant was to Sign up for Crain's Michigan Wyoming-based Metro Health’s Mike Faas also wants to talk with troit versus Grand Rapids. It’s have started this year, but LG Business e-newsletter at crains quest for a partner has at least one Kalamazoo-based Borgess Health about all of us together as one Chem put 200 employees on a detroit.com/emailsignup. potential suitor highly interested. and Flint-based McLaren Health. state, and I think there’s amazing A decade after making a rejected work happening here in the start- offer to acquire Metro, Novi-based up community,” he said. “I think ORRECTIONS Trinity Health remains “absolutely” Linkner gives entrepreneurial C the more we can collaborate, share Ⅲ interested in working out some pep talk to Grand Rapids group best practices and help each other A story on Page 3 of the Oct. 15 issue misspelled the name of Marc kind of union, Roger Spoelman, out, the better for all of us.” Schwartz, chairman of the Dlectricity festival and Arts Detroit Now. who heads Trinity’s West Michi- If Michigan is going to battle Ⅲ The ballot proposals table on Page 42 of the Oct. 22 edition should gan operations under the Mercy back to a strong position on the have made clear that the organizations listed under “opposition” to Health banner, told MiBiz. global economic stage, Josh Linkn- EV woes mean cells not selling; Proposal 1 are opposed to having the referendum but support a “yes” In West Michigan, Trinity owns er says, it’s going to need help from LG Chem battery plant idled vote on the proposal, which supports the broader powers for emer- Saint Mary’s Health Care in Grand entrepreneurs. “How we can make gency managers that were approved in 2011. An updated ballot propos- Rapids and Muskegon’s Mercy the biggest impact the fastest? Fos- Sluggish demand for electric ve- al table is available at crainsdetroit.com/election.
Keeping automotive suppliers ahead of the curve
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October 29, 2012 CRAIN’S DETROIT BUSINESS Page 3
Inside Defining Blue Cross’ ‘best efforts’ Reports reveal how much opponents spent to keep Under SB 1294, expected to be considered by casinos off ballot, Page 6 Insurance chief works on payment plan the Michigan House as early as Nov. 8, Blue Cross would “use its best efforts to make annu- BY JAY GREENE Crain’s has learned. al social mission contributions in an aggregate CRAIN’S DETROIT BUSINESS Blue Cross seeks legislative approval to con- amount of up to $1.5 billion over a period of 18 vert to a nonprofit mutual insurance company. years beginning in April 2014.” Insurance Commissioner R. Kevin Clinton is The Michigan Senate two weeks ago approved Critics of the legislation have said the Senate- negotiating a supplemental contract with Blue two bills, SB 1293 and 1294, that would enable approved bills fail to guarantee Blue Cross will Cross Blue Shield of Michigan that will spell out the conversion. make regular annual payments. They also ques- the terms of the payments Blue Cross must “Everything can’t be covered in the legisla- tion whether the $1.5 billion amount is sufficient make annually for 18 years to a new charitable tion,” Clinton said. “I can’t go into specifics to pay for the stated mission of the foundation, health foundation — and clarify when the about the agreement, but we are close. The gov- Company index state’s largest insurer could miss a payment, ernor still has to sign off.” See Blues, Page 31 These companies have significant mention in this week’s Crain’s Detroit Business: A123 Systems ...... 1 A. Alfred Taubman Medical Research Institute . . . . 11 Amherst Partners ...... 4 Penske drives Angle Advisers-Investment Banking ...... 31 Angott Search Group ...... 30 Arotech ...... 7 to the lead of Better Health Markets ...... 3 Blackstone LaunchPad ...... 14 Blue Cross Blue Shield of Michigan ...... 3 BorgWarner ...... 31 super PAC list Cass Community Social Services ...... 33 Corporate Recruiters ...... 30 Region’s biggest biz Detroit Economic Growth ...... 7 Detroit Medical Center ...... 7 donor backs Romney Detroit Tigers ...... 1, 32 Dow Chemical ...... 2 BY AMY LANE Federal-Mogul ...... 31 SPECIAL TO CRAIN’S DETROIT BUSINESS Fisker Automotive ...... 1 Among the Southeast Michigan Ford Motor ...... 1, 4 supporters of the main super PACs Greektown Casino-Hotel ...... 6 in the presidential race, Penske Handelsman ...... 3 Corp. is tops. Henry Ford Health System ...... 7 The Bloomfield Hills-based Ilitch Holdings ...... 32 transportation services company InPore Technologies ...... 16 has given $500,000 to the Restore John S. and James L. Knight Foundation ...... 20 Our Future super PAC backing for- Kelly Services ...... 30 mer Massachusetts Gov. Mitt Meijer ...... 2 Romney. Penske’s $250,000 contri- butions in September and July MGM Grand Detroit Casino ...... 6 MHT Housing ...... 33 make it the largest single local con- GLENN TRIEST Michigan Business and Professional Association . . 31 tributor between that super PAC Tedd Handelsman, founder and president of the company that does business as Better Health Markets, says the and one backing President Barack growing interest in healthier eating is coming not just from baby boomers but also for Generation X. Michigan Economic Development ...... 30 Obama, according to federal elec- Michigan State University ...... 16 tions data released last week. Midtown Detroit ...... 7 “In our view, it’s a critical time MotorCity Casino Hotel ...... 6 for our country, a critical time for Nextek Power Systems ...... 17 business, a critical time for the Market growth naturally Nutri-Foods ...... 33 economy,” Penske President Rob Penske ...... 3 Kurnick said. “We wanted to sup- port the governor, and we did that Better Health expands as hunger for Piston Group ...... 4 with the super PAC.” St. John Macomb-Oakland Hospital ...... 4 The story of Southeast Michigan Snelling Staffing Services ...... 30 business support for the two cen- organic food, health aids increases TI Automotive ...... 1 tral super PACs in the presidential University of Michigan ...... 11 BY SHERRI WELCH race has been one of contributions University of Michigan-Dearborn ...... 29 CRAIN’S DETROIT BUSINESS mostly ranging from $5,000 to Valeo Automotive ...... 4 $500,000 for Restore Our Future Consumers’ growing interest in organic foods, vit- Warner Norcross and Judd ...... 31 and amounts generally reaching amins, supplements, and health and beauty aids did- Wayne State University ...... 7, 14, 17 up to $3,500 to the Priorities USA Ac- n’t let up even during the recession for Novi-based Zerbo’s Health Foods ...... 33 tion super PAC supporting Obama Better Health Markets. — a notable exception being a The chain’s gross revenue steadily increased from $100,000 Priorities USA contribu- $20.3 million in 2009 to $22 million in 2010 and $23 tion from a United Auto Workers po- million last year. And it’s on pace to reach $27 mil- litical action committee. lion this year, thanks to the addition of organic gro- The amounts are small com- ceries and gourmet cafés in its stores and advertis- Better Health Markets claims to be the largest independent, family-owned natural food store chain in Michigan. pared with the $1 million- to $5 mil- ing during the “Dr. Oz” show, a daily television lion-per-contribution donors that program focusing on medical issues and personal show up at the top of the Restore health. healthy and stay vibrant.” Our Future national roster or the “I think the market has expanded for organic … Gen X consumers are also increasingly looking at Department index $1 million- to $2 million-a-pop and natural food,” said Tedd Handelsman, founder organic and natural foods, said Handelsman, 55. donors at the top of Priorities USA and president of Handelsman Inc., which does busi- “A lot of them enter the marketplace when they BANKRUPTCIES ...... 7 Action’s national list, as shown ness as Better Health Markets and includes the mi- have children and are looking to feed (them) healthi- BUSINESS DIARY ...... 27 through Federal Election Commis- nority ownership of his father, Herb Handelsman, er food,” he said. CALENDAR ...... 26 Handelsman didn’t start out in the organic prod- sion data on the OpenSecrets.org and two other shareholders. CLASSIFIED ADS ...... 29 website of the Center for Responsive ucts business. Before starting the company, he “There’s a continual shift to people eating healthi- JOB FRONT ...... 28 Politics in Washington, D.C. er,” he said. “As the baby boom generation gets old- worked with his father at Canton Township-based KEITH CRAIN...... 8 See Donors, Page 33 er, they are looking for alternative ways to get See Better Health, Page 33 LETTERS...... 8 ’ MARY KRAMER ...... 9 Start your day OPINION ...... 8 THIS WEEK @ Want business news from around the state sent to your email PEOPLE ...... 28 by 7 a.m. daily? Sign up for the Crain’s Michigan Morning WWW.CRAINSDETROIT.COM newsletter at crainsdetroit.com/morning. RUMBLINGS ...... 34 WEEK ON THE WEB ...... 34 20121029-NEWS--0004-NAT-CCI-CD_-- 10/26/2012 5:43 PM Page 1
Page 4 CRAIN’S DETROIT BUSINESS October 29, 2012 Sources: Ford assembling another minority supplier from joint venture
BY DUSTIN WALSH of 17 Visteon Corp. plants in 2005. venture between Piston Group and CRAIN’S DETROIT BUSINESS Ford spun out its parts division to Valeo has secured a plant or what form Visteon in 2000. it will be called. For the second time this year, Della DiPietro, a consultant for Valeo has been after the Sheldon Ford Motor Co. appears to be orches- Ford and spokesperson for its ACH Road business for nearly five years. trating a deal to create a local mi- plants, declined to comment, call- It signed a memorandum of under- nority-owned supplier joint ven- ing the deal speculation. standing to acquire the ACH Shel- ture. The plant supplies climate con- don Road plant in December 2006, Under the deal, which was close trol components to Ford. It’s un- but the deal fell through in 2007 after to being signed as of Thursday af- clear how much business takes negotiations with the UAW stalled. ternoon, Redford Township-based place at the plant. Then Valeo-CEO Thierry Morin Piston Group and French supplier The deal is likely to be reminis- told reporters at the 2007 Frank- Valeo SA would create a minority- cent of a contract that created the furt Motor Show that the supplier owned joint venture, two sources Detroit-based minority-owned sup- wanted hourly pay for UAW work- confirmed to Crain’s under the plier Detroit Manufacturing Systems ers reduced to $20 or less from $30, condition of anonymity. LLC. Wards Auto reported. Piston Group, led by Chairman Ford helped form DMS in May “As you know, it’s standard prac- and former Detroit Piston Vinnie with a deal between Wayne-based tice in the industry for companies Johnson, is ex- Rush Group and French supplier to hold talks and establish regular pected to main- Faurecia SA. Under that deal, Ford contacts whenever they perceive a tain a majority created the minority-owned sup- possible strategic benefit,” said stake in the ven- plier — Andra Rush, Detroit Man- Brad Warner, regional communica- ture. Valeo oper- ufacturing Systems CEO, is an tions manager for Valeo Automo- ates in North American Indian — and unloaded tive in Troy. “Nevertheless, I can- America as Va- its $1.1 billion book of interiors not confirm that Valeo is currently leo Automotive business at its 1.6 million-square- engaged in any discussions with Inc. in Troy. foot ACH Saline plant. any particular counterparties.” Also under As a result of the deal, Rush Valeo’s North American unit gen- the deal, Valeo Group controls a 55 percent stake erated revenue of $1.9 billion last will likely take Johnson of the joint venture, which will year with 447 employees in metro over all or a portion of the busi- take over about 70 percent of the Detroit. At the time of the deal sign- ness at Ford’s Automotive Compo- book of business. ing in 2006, the plant employed 1,250, nents Holdings plant on Sheldon DMS occupies 480,000 square according to a Ford release. Road in Plymouth Township and feet in the Gateway Industrial Cen- Piston Group was formed by transition a portion of the pro- ter in Detroit and shipped its first Johnson in 1995 and supplies sus- grams to the joint venture. It’s un- product, instrument panels for the pension assemblies, chassis mod- clear whether Valeo will take over Ford Mustang, to the automaker’s ules and interiors, with Ford being the Sheldon Road plant through a Flat Rock assembly plant July 30. its largest customer. The supplier purchase or lease, if at all. DMS is also bidding on supply generated revenue of $473.8 mil- The plant is 991,265 square feet, contracts with other automakers, lion in 2011 with 226 local employ- according to CoStar Group. including General Motors Co., Chrysler ees. Calls to Johnson and Piston The Sheldon Road plant is the Group LLC and Toyota Motor Corp. representatives were not returned last plant left from Ford’s takeover It’s unknown whether the joint in time for deadline. $1M gift to ease St. John ER crunch Amherst Partners’
BY JAY GREENE “We are treating an extra 50 pa- Eisenberg elected CRAIN’S DETROIT BUSINESS tients in the ER and are up to 200 per day,” Hamilton said. “The ER A surprise $1 million donation was designed for 150. We will have IMAP chairman to St. John Macomb-Oakland Hospital more treatment space per patients campus in Warren last month was and able to get patients cared for Scott Eisenberg, managing “money from heaven,” said Terry quicker.” partner of Birmingham-based Hamilton, the hospital’s president. Hamilton said about two dozen financial advisory firm Amherst The 159-bed community hospital ER staff have been hired to accom- Partners LLC, has been elected was struggling to take care of a 33 modate the volume, including chairman of Istanbul-based in- percent increase in emergency de- about six from the closed Henry ternational merger and acquisi- Let Olympia Entertainment partment visits after a nearby com- Ford hospital, located about three tion network group IMAP Inc. peting hospital closed last year. miles from the St. John facility. IMAP, formed in 1973, is a add the Sparkle to your Season In March 2011, Henry Ford Health “The 50 ER visits have translat- network of private M&A advi- System closed medical-surgical ser- ed into roughly five to 10 new ad- sory firms in more than 40 Unforgettable Holiday Celebration Ideas to Fit Every Size and Style vices and the emergency depart- missions each day,” said Hamil- countries. IMAP firms complet- ed 227 M&A deals across all in- ment of the Warren campus of Henry ton, noting that many of those For a list of ideas visit: OlympiaEntertainment.com/HolidayParties dustries in 2011. Ford Macomb Hospitals because of $15 admissions have required inten- Eisenberg has worked on million in annual losses. The hospi- sive care services. more than 75 investment bank- tal is being converted into a more- Besides St. John’s Warren hos- ing deals and advised more profitable rehabilitation center. pital campus, St. John’s hospitals than 200 companies over his 25- “We got a call several weeks ago in Southfield and Detroit also have year career. had increases in patient and ER from a couple who wanted to make Before founding Amherst in a gift,” Hamilton said. “We told visits the past year, Hamilton said. 1994, Eisenberg served as vice them our most important need was McLaren-Macomb Hospital, about president of Lansing-based sub- in the emergency room because we six miles away from the Henry ordinated debt fund Onset Bidco. had a sad closure of a hospital and Ford Warren hospital, also stands He is a former manager of cor- we were serving many of those pa- to benefit from an increase in ER porate finance for Deloitte & tients.” visits and admissions, McLaren Touche LLP. The couple asked to remain executives said. Eisenberg was a finalist for anonymous, Hamilton said. St. John Macomb-Oakland Hos- the Ernst & Young Entrepreneur of Creating Championship Level Events The $1 million gift will go to in- pital, which also operates a second the Year award in 2007 and 2008 Call For Details: 313-471-3333 creasing the size of the ER at the 376-bed campus in Macomb, is part as well as a 1998 Crain’s Detroit hospital, at 11800 E. 12 Mile Road, of the five-hospital St. John Provi- Business 40 Under 40 honoree. by 3,000 square feet to 20,000 dence Health System in Warren. He earned a bachelor’s de- square feet, Hamilton said. The ex- Jay Greene: (313) 446-0325, gree in accounting from the Uni- pansion is expected to be complet- [email protected]. Twitter: versity of Illinois and an MBA in ed in about six months. @jaybgreene finance from Indiana University. DBpageAD.qxp 10/2/2012 3:48 PM Page 1 20121029-NEWS--0006-NAT-CCI-CD_-- 10/26/2012 5:18 PM Page 1
Page 6 CRAIN’S DETROIT BUSINESS October 29, 2012 Opponents spend $2 million to keep casinos off ballot
BY AMY LANE Contributions to the Protect MI Vote were Native American casi- near Cadillac, DeWitt Township ended in early September with a SPECIAL TO CRAIN’S DETROIT BUSINESS Vote committee for the latest filing nos and tribes. near Lansing, Pontiac, Clinton Michigan Supreme Court ruling. period, July 21 to Oct. 21, included The group seeking the casino ex- Township, Birch Run Township, The court’s majority opinion Detroit’s three casinos and oth- $330,450 from MGM Grand Detroit pansion, Citizens for More Michigan Grand Rapids and Romulus. said the proposed casino amend- er opponents of a ballot proposal to Casino; $233,277 from Detroit Enter- Jobs, raised $694,500 in the latest The proposal was backed by the ment, by requiring liquor licens- authorize eight new casinos in tainment LLC, which operates Mo- filing period, and all of the money statewide investors group orga- es to be granted to the new casi- Michigan poured nearly $2 million torCity Casino Hotel; and $165,015 came from Jobs First LLC, a self-de- nized by lobbyist and former nos, would nullify the complete collectively into the final push to from Greektown Casino-Hotel LLC. scribed group of Michigan busi- Michigan House Speaker Rick control afforded the Michigan keep the constitutional amend- An additional $300,000 came nesspeople whose individual con- Johnson and former senator and Liquor Control Commission to grant ment off the ballot, according to from an entity set up by the three tributions were not disclosed. state budget director Mitch Ir- licenses and would abrogate that campaign finance filings submit- casinos and financed equally by The group’s proposal would win. provision in the state constitu- ted last week with the Michigan De- them, a campaign spokesman said. have authorized casino gambling But legal battles over the quest tion. The proposed amendment partment of State. Other contributors to Protect MI in Detroit, Clam Lake Township to get the proposal on the ballot also failed to republish that af- fected existing provision, as re- quired, the court’s majority opin- ion also said. T.J. Bucholz, spokesman for Citizens for More Michigan Jobs, said the group was “a bit disap- pointed in the results that came from the Supreme Court that kept this initiative off the ballot. We had a half-million signatures of Michigan citizens that wanted to decide this question for them- selves.” He said that “in terms of what lies ahead, we continue to have discussions about what a future ballot initiative might look like.” Bucholz is a director in the Lans- ing office of public relations and investor relations firm Lambert John Hancock Plan Consultant Leader Edwards & Associates. John Truscott, spokesman for opponents Pro- Great Lakes Pension Associates, Inc. tect MI Vote, said the group’s legal strategy worked “in an Each year, John Hancock Retirement Plan Services invites a select group of Plan Consultants to become a effort to uphold the constitu- John Hancock Plan Consultant Leader. Members of the Leaders group have an ongoing relationship with tion, and show in this case that John Hancock and are involved in influencing new initiatives and services that we offer to our mutual clients. They are certain special also invited to attend the annual Plan Consultant’s Leaders Conference, an exclusive and informative business meeting interest groups Truscott can’t buy their where attendees share ideas with John Hancock Senior Management and engage in peer interaction sessions with way into the constitution.” Tr- uscott is president of Lansing- fellow Plan Consultants. based public relations firm Tr- uscott Rossman. Overall, through the election We are pleased to recognize Great Lakes Pension Associates, Inc. of Farmington Hills, MI as an 11-time John Hancock cycle, Protect MI Vote raised more than $2 million and spent Plan Consultant Leader. $1.9 million. Citizens for More Michigan Jobs raised nearly $3.5 million and spent an approxi- mately equal amount. Great Lakes provides expert, detailed administration of your retirement program. Expenditures listed on the pro- casino group’s latest report in- We work hard at our business so you can spend valuable time running yours. clude $201,293 to Fabrizio, Our reputation for timeliness and accuracy is built on years of experience. McLaughlin & Associates Inc. in Alexandria, Va., for survey re- Our reputation for quality is built on years of results. search; $159,595 to National Peti- tion Management in Brighton, for petition signature gathering; $120,492 to Fraser Trebilcock Davis & Dunlap PC for legal fees; $46,024 to Lambert Edwards, for public relations; and $15,537 to Byrum & Fisk Advocacy Communications in East Lansing, for consulting. On the opposing side, expendi- If you would like more information about Great Lakes Pension Associates, Inc., tures included more than $1.1 please call 248-553-8070 or visit their website at www.greatlakespension.com. million to Revolution Media Group in Alexandria, Va., for media placement for broadcast TV and cable, and ad production and con- sulting; $110,154 to the Mellman John Hancock Retirement Plan Services and Great Lakes Pension Associates, Inc. are not affiliated and neither are responsible for the liabilities of the other. Group Inc. in Washington, D.C., Both John Hancock Life Insurance Company (U.S.A.) and John Hancock Life Insurance Company of New York do business under certain instances using the John Hancock for public opinion survey re- Retirement Plan Services name. Group annuity contracts and recordkeeping agreements are issued by: John Hancock Life Insurance Company (U.S.A.), Boston, MA 02210 (not licensed in New York) and John Hancock Life Insurance Company of New York, Valhalla, NY 10595. Product features and availability may differ by state. John Hancock search services; $65,000 to Tr- Investment Management Services, LLC, a registered investment adviser, provides investment information relating to the contracts. uscott Rossman for consulting services; $26,000 to Michigan Con- NOT FDIC INSURED | MAY LOSE VALUE | NOT BANK GUARANTEED | NOT INSURED BY ANY GOVERNMENT AGENCY sultants in Lansing, for consult- © 2012 All rights reserved. ing services and an economic im- pact study; and $38,000 to Nye & Associates in Lansing, for consult- ing services. 20121029-NEWS--0007-NAT-CCI-CD_-- 10/26/2012 4:43 PM Page 1
October 29, 2012 CRAIN’S DETROIT BUSINESS Page 7 Buy-local initiative spurs up to $18M in transfers to local vendors
BY CHAD HALCOM isn’t yet known, Mosey said. CRAIN’S DETROIT BUSINESS “We have been focusing on increasing purchasing in a variety of commodity A buy-local purchasing initiative among groups which include food, printing, con- the procurement offices of Detroit-based Hen- struction, IT staffing services, and some oth- ry Ford Health System, Wayne State University er basic services,” Mosey told Crain’s in an The Polk Family Endowed Chair in and Detroit Medical Center could have already email last week. “Our hope is to reach $50 Developmental-Behavioral Pediatrics transferred about $18 million worth of pur- million worth of known transfers to city of chases to local vendors in its first 18 months. Detroit vendors by the end of 2014.” Source Detroit, originally organized as Midtown Detroit and the Detroit Economic “Buy in Detroit” in early 2011, debuted with Growth Corp. collaborate on Source Detroit Ghesquiere Family Center a trade fair last May and, as of July, tallied with the three institutional buyers’ senior for Children’s Surgery $16.5 million of combined goods and services procurement officers: Ken Doherty, assis- transferred to city-based tant vice president of procurement and vendors. strategic sourcing for Wayne State; James But that sum does not O’Connor, Henry Ford vice president of sup- John A. & Marlene L. Boll Center for Human include a more recent ply chain management; and Donald Groth, Development at the Neighborhood Club agreement to place a DMC corporate vice president of materials broad category of informa- resource management. tion technology staffing The program is intended to place more services with Detroit ven- than 3 percent of the institutions’ combined dors, said Sue Mosey, $1.6 billion in procurement spending among president of the nonprofit companies after its first three years. Partici- Midtown Detroit Inc., which pating vendors must have “a meaningful collaborated with the Mosey presence in the city of Detroit,” according to three anchor institutions to launch Source the Source Detroit website. Detroit. Chad Halcom: (313) 446-6796, An exact value of the staffing contract [email protected]. Twitter: @chadhalcom
The Celani Family Comprehensive Neonatal Intensive Care Center Arotech shares top $1 for 1st time Hough Center for Adolescent Health since threat of Nasdaq delisting Why do some people care
BY CHAD HALCOM loss margin, due to overhead costs and spo- as much about your children CRAIN’S DETROIT BUSINESS radic purchase orders, said Victor Allgeier, di- rector of investor relations for Arotech and as they do about their own? Shares of Ann Arbor defense contractor president of New York-based TTC Group. and battery systems maker Arotech Corp. The board also imposed a 10 percent pay topped $1 in trading last week for the first cut on top executives and several of its ven- Behind the Beaumont Children’s Hospital, the renowned time since the company received an Aug. 2 dors in March to help the company return to notice that it may face delisting from Nasdaq. profitability, Allgeier said. pediatric doctors and the leading-edge technology are Arotech (NasdaqGM: ARTX) closed at $1.01 Excluding Armor, Arotech reported a net some very special people in our community. Wednesday and crested $1 again periodically loss of $3.9 million, or 16 cents per share, on in trading Thursday after announcing that revenue of $36.5 million in its remaining di- Their gifts allowed us to create an environment that its Battery and Power Systems Division won visions for the first half of 2012, compared a new contract to develop three prototypes of with a net loss of $4.3 million, or 17 cents, on comforts worried parents and heals their sick children. a lithium battery for hybrid electric vehicles revenue of $23 million in the first half of 2011. for an “unnamed” German auto supplier. The company expects to see greater profits Through their generosity, Beaumont created a center The company expects to deliver the proto- in its simulation division soon, Allgeier said. to diagnose and manage developmental and learning types in first-quarter 2013, marking its first en- “In simulators, contracts are often award- try into the hybrid electric vehicles market. ed with a stipulation that you can’t charge challenges including autism. We were able to found a Arotech’s share price hadn’t closed at or more than a certain percentage on hardware, children’s surgery center, where a specialized team cares above $1 since June 29, prompting Nasdaq to and it takes six to nine months to get those for our most vulnerable patients. And we are able to give notice that Arotech has until Jan. 29 to components delivered,” he said. “It isn’t un- regain compliance with its marketplace til after that when they deliver and install treat the epidemic of eating disorders that is affecting so rules. That includes closing at or above $1 software components that the contract can many young people today. for at least 10 consecutive business days. really add to (profit) margins. We should be The company said in August it could give about in that stage soon on some programs.” Because of philanthropy, advances in pediatrics at “no assurance” that would happen, and said, Mark Jordan, senior research analyst at “If we are not eligible for an additional com- Noble Research in Florida, gives Arotech Beaumont mean families can get specialized care closer pliance period, or do not regain compliance stock a “buy” rating and thinks the compa- to home. during any additional compliance period, ny is undervalued in part due to pessimism Nasdaq will provide written notice to us that about future defense spending. Most of all, these people prove that it doesn’t always take our securities will be delisted.” “I think that (share price) is a combina- The company on June 20 signed a definitive tion of issues. One clearly is that the defense a medical degree to save a child’s life. All it takes is a heart. agreement to sell the assets of its discontin- spending future going through the (defense) ued Armor Division to Tel Aviv, Israel-based sequestration process has generated some Shladot Ltd. for a total cash price of just $50,000. concern,” Jordan said. “But the company Armor typically added more than $16 mil- has had some meaningful new contract lion per year to company revenue but also con- awards in its simulation division, which is tributed several million dollars to its annual at least some reason for optimism.” A Not-for-Profi t Provider BANKRUPTCIES The following businesses filed for Chapter 7 or 11 Bloomfield Township, voluntary Chapter 11. As- Find out how you can save lives, too. If you would protection in U.S. Bankruptcy Court in Detroit sets and liabilities not available. like to make a gift, please go to our website at Oct. 19-25. Under Chapter 11, a company files for Plan B: Inc., dba Continental Bike Shop, 24436 foundation.beaumont.edu or click on the code reorganization. Chapter 7 involves total liquida- John R Road, Hazel Park, voluntary Chapter 7. tion. Assets and liabilities not available. with your phone. Cosmetic Horizons PC, 6830 Reserve Road, West — Ryan Kelly 20121029-NEWS--0008-NAT-CCI-CD_-- 10/26/2012 5:17 PM Page 1
Page 8 CRAIN’S DETROIT BUSINESS October 29, 2012 OPINION LETTERS Here’s a proposal: Student debt solution off mark Editor: and Advanced Placement courses Crain’s Detroit Business Henry Baskin’s Oct. 15 Other to earn college credits. I have done welcomes letters to the editor. all of this and can say it is indeed Voices piece, “Take action on stu- All letters will be considered for dent debt,” misses the mark when publication, provided they are honorable. Ads that tell truth he suggests that a solution to stu- signed and do not defame Instead, Mr. Baskin, as a former dent debt is to allow students to individuals or organizations. university trustee, wants to pass the cost on to the Treasury Department ow can they get away with it?” many of us ask, discharge higher-education costs Letters may be edited for length in bankruptcy without negatively and clarity. and essentially to all of us, the tax- weary of the lies and misrepresentations bom- payers. The universities would still affecting their credit scores. If that Write: Editor, Crain’s Detroit barding us, courtesy of the political advertising get paid along with the attorneys do- “H were allowed, many would run up Business, 1155 Gratiot Ave., for and against Michigan’s ballot proposals. a tremendous amount of debt for Detroit, MI 48207-2997. ing the bankruptcy work. Mr. Baskin is an attorney, by the way. How much is hyperbole? What constitutes outright fiction? undergraduate and graduate Email: [email protected] The solution is to cut government school and then file bankruptcy. There ought to be a “truth in advertising” law. And actually, and cut taxes to businesses and indi- Nowhere in his article is it men- there is — if you’re selling soap. viduals. This will provide the en- tioned that schools need to be his or her country in the military But political speech is protected on the airwaves. gine for a strong economy. Holding more fiscally responsible, or that to help defer the cost of higher edu- college students unaccountable for In fact, Section 315 of the Communications Act, which gov- government should be reduced to cation or perhaps spending the the cost of their education is irre- erns the Federal Communications Commission, prohibits stimulate the economy, thereby first two years of a four-year de- sponsible and ridiculous. bringing in more revenue for gree in a junior college as a cheap- broadcasters from censoring — or rejecting — an ad sponsored Rob Butler by a candidate’s official campaign committee. schools. There is no discussion er alternative, or even taking Col- Partner about a student perhaps serving lege-Level Examination Programs However, ads from third parties — PACs, super PACs or Butler CPA & Associates PLLC groups with names like Citizens For Assuring Ignorance as We Know It — are not protected. Broadcasters can accept or re- ject third-party ads. Which happens … maybe never. Ballot proposals 3, 6 stir debate John Bebow, president of The Center for Michigan, a non- Editor: price by spending $1.7 billion last construction contracts? partisan group, has supervised a “truth squad” of journalists If voters follow the recommen- year to import coal. The status quo When I helped promote then- and researchers verifying political advertising claims since dation of Crain’s Detroit Business has driven DTE Energy to raise Gov. William G. Milliken’s pio- August (online at michigantruthsquad.com). (“Approve Proposal 1; vote ‘no’ on rates 13.5 percent this year. neering alternative energy poli- Plenty of ads stretch the truth, but Bebow describes those the rest,” Oct. 22 editorial), the Michigan State University econo- cies for Michigan in 1976, pushing Proposal 6, which seeks to block the new internation- jobs of the future will head to mists and others have determined entrepreneurs created around 400 states like Illinois, Iowa and Min- Proposal 3 will spark 74,000 con- new companies in our state. When al bridge, as “manufacturing an alternative universe.” nesota, where strong renewable struction and operations and main- these efforts were abandoned by When the dust settles in November, Michigan’s broadcast energy standards have been imple- tenance jobs. If Michigan’s manu- successive administrations, we industry should ask whether the viewers were served. And will mented, and Michigan will lose facturing talent and know-how are lost these companies. The differ- the windfall of political ad revenue be reinvested in the news- out. Michigan can compete for factored in, 94,000 Michigan jobs ence this time is that if Proposal 3 rooms or just go to out-of-town owners? those jobs by passing Proposal 3, will be created. There are 8,000 is passed, we can move forward which will increase our state’s re- parts in a wind turbine, and all of with creating more-permanent al- newable energy standard to 25 per- them can be made in Michigan. ternative energy jobs . cent by 2025. Moving to more renewable ener- Joe Neussendorfer Vote on Blues demands details We only need to look to Illinois gy also helps improve public Livonia A landmark change in the status of the state’s largest to see a 25-by-2025 renewable ener- health and protect our Great Lakes health insurer appears to be on the fast track in Lansing. gy standard that is working. The by reducing pollution in our air Do analysis on Prop 6 After the Nov. 6 election, lawmakers will consider bills in- Illinois Power Agency has report- and water, Editor: spired by Gov. Rick Snyder’s proposal to convert nonprofit ed significant job creation from I urge all Michigan voters to the renewable energy standard, support Proposal 3 because it will The lack of in-depth analysis Blue Cross Blue Shield of Michigan into a nonprofit mutual in- and electricity prices have been re- create jobs, rein in rising energy done by the media regarding the surance company. duced by $176 million. costs and reduce pollution. proposed new bridge is disturbing. Critics argue the bills aren’t strong enough in dictating the More than 30 other states have Mark Fisk We are shocked that the governor already passed measures similar Spokesman for Michigan Energy Michigan Jobs tries to pass it off as a “free bridge” amount of cash Blue Cross would contribute annually to a Account executive to Proposal 3. We can’t ignore that when he hasn’t performed the charitable health foundation as a trade-off for its decades of Byrum & Fisk Advocacy Communications analysis to determine that Cana- tax exemptions. But Crain’s Jay Greene reports on Page 3 that other states are moving forward with more renewable energy, da’s unapproved commitment of Snyder says a separate contract will spell out the details. while in Michigan we get just 3.9 Short-sighted on ‘3’ $550 million to cover the Michigan portion is woefully inadequate. That contract is critical. The new health foundation may percent of our electricity from re- Editor: Will Canada really pay? If so, why become one of the state’s most important health care assets. newable sources. Business groups, local cham- isn’t the commitment in writing? Michigan gets nearly 60 percent The terms for its creation and how Blue Cross will fund it are bers of commerce and governmen- The governor now admits Cana- of its electricity from coal, and we of great public interest. tal economic development officials da’s promise doesn’t exist in a le- have to import all of that coal from are short-sighted when they so ve- gal document — a fact we have The contract terms need to be available to lawmakers as other states. The cost of delivering hemently oppose Proposal 3. Don’t been stating for over a month. part of their deliberation. Nobody should be voting on a bill the coal has increased by 71 per- they get that many of their own My firm recently published a re- without understanding fully what will be required of Blue cent in the past six years — and members will benefit from passage Cross after this conversion. Michigan families have paid the through new manufacturing and See Letters, Page 9
KEITH CRAIN: Be sure to vote, but do your homework I am not one of those people who This is not a lottery. seen in all my years as a don’t get the same level of pre-elec- to represent us. We should never believe that everyone who has the This is not a multiple- voter. tion coverage and scrutiny as oth- even see these issues on the ballot. right to vote should use it. choice quiz. This is a se- Getting an absentee er candidates. They are end-runs around the leg- I happen to think that along rious ballot filled with ballot makes it a lot eas- Regardless of whether you need islative process, usually bought with the right comes the responsi- people running to repre- ier to study the issues a photo ID to vote, you do need to and paid for by special interest bility to learn enough about the sent us. and ballot proposals do your homework. If you don’t groups. candidates to make an intelligent And most important- without being rushed in know the candidates and the is- Let’s hope that in the future we decision. ly, if you aren’t sure a voting booth. sues, then it is best you stay home. are able to make it a lot harder to If you don’t know what’s going about the ballot issues, I find it particularly It’s bad enough that most folks get a proposal on the ballot. Today, on and you don’t plan to learn, don’t vote. The difficult to vote for don’t know who our elected offi- it seems, all you need is a wheel- maybe you should simply stay statewide proposals are judges. There is always cials are today, much less the addi- barrow full of money. home from the polls on Nov. 6. And very complicated; there plenty of information tional candidates on the ballot. But if you want one more opinion if you vote but don’t know any- are usually local ballot available on candidates There are too many state ballot on these ballot proposals, vote “yes” thing about some of the lesser can- proposals, too. for national office and the ballot proposals on our ballot this year. on the first and “no” on the rest. didates on the ballot, skip that part In fact, this year’s ballot is prob- initiatives. But judges, including We have an elected legislature and Sure, we should all vote, but of the ballot. ably the most complicated I have state Supreme Court candidates, executive branch that we elected first we should do our homework. 20121029-NEWS--0009-NAT-CCI-CD_-- 10/26/2012 10:43 AM Page 1
October 29, 2012 CRAIN’S DETROIT BUSINESS Page 9 MARY KRAMER: Patient Hantz keeps his message positive
If patience is a virtue, John In preparing the pilot Hantz has expanded colleagues have bought seven hoods? What if there were 15 en- Hantz could be on Detroit’s short site, the first thing the from the original stock more. claves to build on across the city? list for canonization. Hantz team did was brokerage to include Hantz said he was drawn to Indi- This is affordable; you can actual- His quest to launch large-scale clean up the lots. “We insurance and finan- an Village because of its history ly implement it. I think it’s actual- farming to fill Detroit’s big open got rid of the ratty-look- cial services and even a and the “craftsmanship and the ly scalable. spaces has been slow — about ing stuff, the debris and retail bank. uniqueness of those homes,” many “Who are the entrepreneurs to three years. Hantz’s for-profit vi- trash and leveled it The farming idea has of them with libraries, music do this? All of a sudden, the grass sion — and that of the nonprofit out,” Hantz said. “We gotten public attention, rooms and even third-floor ball- is getting cut, and it’s a simple RecoveryPark — are both waiting cleaned out 430 tires in but Hantz has another rooms. quality of life play for everybody. for the regulatory green light, a this little section.” idea for cultivation — The village of 350 century-old It’s replicable.” city ordinance to regulate farming Meanwhile, his for- seeding Detroit’s homes is already one of Detroit’s behind small lots. profit financial ser- neighborhoods with en- stronger neighborhoods. But Mary Kramer is publisher of A Hantz Farms hardwood tree vices company is cele- claves of successful en- Hantz wonders whether other en- Crain's Detroit Business. Catch her farm pilot is under way near Mt. brating its 15th trepreneurs, their col- trepreneurs could make a differ- take on business news at 6:10 a.m. Elliott; the larger-scale farming anniversary in expanded head- leagues and friends. ence in other neighborhoods. Mondays on the Paul W. Smith show would unfold within the Warren- quarters in Southfield, near the in- Like Hantz has done in Indian “We have a strategy for down- on WJR AM 760 and in her blog at Conner neighborhood on the city’s tersection of the I-696 and Lodge Village on Detroit’s east side. He town and Midtown,” he says. www.crainsdetroit.com/kramer. east side. Growing trees is differ- freeways. With 600 employees, bought and restored two homes; “What is the strategy for neighbor- E-mail her at [email protected]. ent from his original concept, but Hantz sounds a bit like Gov. Sny- der when he talks about working through obstacles. “I simplified the concept to get rid of as many objections as possi- ble,” he says. “I am staying the course and am not whining. I keep the message positive and straight- forward.”
LETTERS CONTINUED ■ From Page 8 port that is available on our website analyzing the economics of the bridge. Our analysis used the state’s own numbers and showed the bridge is not needed at this time and is economically not feasible. It should be alarming that no respon- sible public official or media outlet has taken notice or started asking hard questions of the state. Trucks will not suddenly mush- room from the ground with a new bridge. Truck traffic is down for many reasons, including the ongo- ing recession and the strengthening of the Canadian dollar. High-speed and double-stacked container rail capacity is being proposed for the crossing, which, in Gov. Snyder’s own words, will take trucks off the road. This has not been considered by the state’s “independent” inter- national toll revenue forecasters, who receive millions in engineer- ing contracts from MDOT. These forecasts are inaccurate. Why hasn’t our governor forced the Canadians to sufficiently staff customs and immigration, grant the necessary permits for the pro- posed Ambassador Bridge twin span, and connect the Highway 401 extension to the existing crossing there? Where is the outrage that a gov- ernmental unit can effectively put a private Michigan business, which employs Michigan workers, out of business by favoring a gov- ernment-run competitor? There are so many questions left to be an- swered by our governor. Crain’s report on Proposal 6 may have passed the weight test; unfortunately, it did not ask many of the hard questions regarding the underlying lack of detail or fea- sibility of the new bridge. Patrick O’Keefe CEO and founder O’Keefe & Associates Consulting LLC
Editor’s note: The Detroit Inter- national Bridge Co. is a client of O’Keefe & Associates and the firm completed a study on the economics of a new bridge on its behalf. DBpageAD_DBpageAD.qxd 10/24/2012 11:39 AM Page 1
Professors who do
Meet Jay Burmeister, associate professor in the Wayne State University School of Medicine and chief of physics for the Karmanos Cancer Institute. Burmeister leads a group of medical physicists who work to advance the science and technology of radiation therapy. His research is revealing new ways to think about cancer treatment, and his award-winning teaching is engaging a new generation of physicians and scientists.
Breakthroughs that happen on Wayne State’s campus in Midtown Detroit resonate AIM HIGHER worldwide, making us healthier, keeping us safer, and sustaining our communities. wayne.edu Learn more about how our faculty is changing the world at research.wayne.edu. 20121029-NEWS--0011-NAT-CCI-CD_-- 10/26/2012 10:00 AM Page 1
October 29, 2012 CRAIN’S DETROIT BUSINESS Page 11
A CONVERSATION WITH
Ken Nisbet, University of Michigan Office of Technology Transfer Innovations: University Research
The Office of Technology Transfer at the University of Michigan has been on a roll the past few years. For the fiscal year that ended June 30, it set a record with 123 licenses and options for UM-based technology, up from 101 the year before. School researchers also reported another Advancing on ALS record: 368 inventions. Eight spinoff companies were created, 101 patents were issued and $13.4 million in licensing royalties were received. Ken Nisbet, executive Stem cell research director of the office, talked with Crain’s reporter Tom Henderson. When did you join the tech transfer nears next phase; office? I’ve been here since 2001. There have been pretty significant changes. We’re much better now at trials may come to getting raw inventions refined to the point where we can get partners to invest what they need to invest to Ann Arbor get them to market. Has it been night and day since you BY TOM HENDERSON arrived, in terms of university support CRAIN’S DETROIT BUSINESS and people paying more than lip service to commercializing on- pproval by the U.S. Food and Drug Administration is campus research? The university took expected any day for researchers and physicians at it very seriously even then. We had a A the University of Michigan to begin a second round of big staff, about 20. Now we’re at 26. Phase 1 stem cell trials on patients with amyotrophic lat- But the big difference is how good eral sclerosis, commonly known as Lou Gehrig’s disease. everyone is now. People wanted to ALS is a disease of the nerve cells in the brain and do the right thing then but didn’t spinal cord that control voluntary muscle movement. It necessarily know how to do it. It’s usually leads to death within three to five years. Current- hard work to convert a raw idea into ly, there is no cure. something appealing enough for The first round of Phase 1 trials, which someone outside to come in and lasted 2½ years and concluded Aug. 22, RESEARCH invest. involved 18 operations that injected stem ROUNDUP The school has had some nice cells into the spines of 15 patients, three returns in recent years with the of whom were injected twice. The opera- Ⅲ WSU program acquisitions of Arbor Networks, tions were conducted at Emory University launches Our Hospital in Atlanta by Nicholas Boulis, entrepreneurs, HandyLab and HealthMedia. Page 14 biggest return came from FluMist, M.D. Ⅲ MSU spinoff which was an overnight success that Eva Feldman, M.D., director of the A. InPore raises took 30 years. John Maassab Alfred Taubman Medical Research Institute funds, Page 16 invented a nasally administered flu at UM and director of the ALS clinic at Ⅲ Nextek helps vaccine that began as a startup and the University of Michigan Health System, Wayne State was sold to MedImmune, which was helped design the study. Boulis is one of change current later sold to AstraZeneca. FluMist her former colleagues at UM. course, Page 17 was very big in the swine flu The first study was to test safety only. outbreak of 2009. and it passed with flying colors, according to a report Compendia, a UM spinoff created in Feldman issued this month at the annual meeting of the 2006, was sold to Life Technologies American Neurological Association in Boston, held in coop- Corp. this month. The founder, Arul eration with the British Association of Neurologists. Feld- Chinnaiyan, was one of Crain’s 40 man is president of the American group. under 40 in 2009. What are the plans Four of the study patients died, three from ALS com- regarding whether the company stays STEVE MAGGIO plications and one from a heart problem. But no safety is- here or moves to California, and if the Eva Feldman, director of the A. Alfred Taubman Medical Research Institute at sues arose from the study itself. company moves, does he? The plan is the University of Michigan and director of the ALS clinic at the UM Health “It went better than I anticipated and could have ever to have the company expand here. System, helped design the Phase 1 trial of 15 patients at Emory University and Arul will stay here. He’s got another the upcoming three-patient Phase 1B trial and the 32-patient Phase 2 trial. See ALS, Page 12 startup project he’s working on. He’s a great example of how we’ve developed entrepreneurship here. He came through the medical school. He’s kind of a Doogie Howser. He was wooed by other schools, and we had to work ALS patient: ‘This isn’t a placebo effect’ hard to keep him. It’s important to create companies and make money, BY TOM HENDERSON cells into the spine of patients with amy- Before the first opera- but this is equally important, too: To CRAIN’S DETROIT BUSINESS otrophic lateral sclerosis. tion, Harada barely keep these people at the school as Phase 1 trials test for safety only. Up- could limp with the great teachers and great researchers. know what a placebo effect is. I’m coming Phase 2 trials, which the FDA is help of canes up the not crazy. This isn’t a placebo ef- expected to approve soon, will test for effi- steps to say goodnight “I fect,” Ted Harada told one of his If you know someone cacy. to his kids at his home interesting in banking, doctors last year, practically Harada, a member of the board of direc- in McDonough, Ga. If he finance, technology yelling it at him in a burst of enthusiasm. tors of the ALS Association of Georgia, first sat in a chair and his or biotechnology Harada, 40, a former manager at FedEx noticed symptoms of ALS in 2009 while wife put the least bit of Tom Henderson Corp., was one of 15 ALS patients who playing Marco Polo in the family swim- resistance on the top of should interview call were part of a recently completed U.S. ming pool. At the time he was explaining Harada his knee, he couldn’t (313) 446-0337 or Food and Drug Administration Phase 1 trial write thenderson his knowledge of placebos, he had just re- budge it off the ground. at Emory University in Atlanta — a trial de- @crain.com. ceived his first injection of 500,000 stem “I went into the trial with the clear signed and run in part by researchers at cells, on March 9, 2011. He got a second in- the University of Michigan to inject stem jection of 500,000 cells Aug. 22. See Patient, Page 13 20121029-NEWS--0012-NAT-CCI-CD_-- 10/26/2012 11:24 AM Page 1
Page 12 CRAIN’S DETROIT BUSINESS October 29, 2012 Innovations: University Research ALS: Next phase of stem cell trials could move from Ga. to UM ■ From Page 11 hoped for,” Feldman said of the after a a patient donated spinal cord with the same brush, she said. patients’ diaphragm. Other tests Phase 1 trial. “There were no ad- tissue in 2002. Although Feldman’s trials did- will investigate how forcefully pa- verse affects.” If there are no ill effects from It’s really exciting n’t use embryonic stem cells, it tients can expel their breaths and The Phase 1B trial, which could doubling the amount of stem cells, “ was thought that Atlanta was a how much oxygen they can inhale. begin as early as December, will a Phase 2 study of 32 patients to to bring this back to better place to start them. “I used “One of the purposes of the in- involve injecting just three pa- test efficacy could start as early as to get these letters and emails jections is to protect the large tients and will be conducted, pend- next summer. Michigan. against what we were doing,” she nerve cells that control breath- ing FDA approval to move the tri- “It’s really exciting to bring this ” said, “but that’s stopped.” ing,” Feldman said. An inability to als to Ann Arbor from Atlanta, by back to Michigan,” Feldman said. Eva Feldman, of UM’s ALS clinic Feldman said that while the pri- breathe is what ultimately kills Parag Patil, a UM physician. “The climate now for this is very mary purpose of the Phase 1B trial many ALS patients. The first trial involved injections embracing — not just in the state nated in voters’ approving embry- will be to test safety, it has been de- Based on anecdotal evidence of of 500,000 stem cells. This trial will but in the university, too.” onic stem cell research in 2008. signed to test efficacy, too. improvements in some patients in inject at least 1 million cells. The tri- Feldman was referring to the One reason that the first trial was One post-surgery test on the the first round of safety tests (see als use a stem sell line derived at contentious climate for stem cell in Atlanta and not Ann Arbor was three patients will use ultrasound story, Page 11), Feldman expects to Rockville, Md.-based Neuralstem Inc. research in Michigan that culmi- that all stem cell work got tarred to evaluate the movement of the see dramatic results in at least some patients — if not in the up- coming three-patient trials, then in the Phase 2 trials to follow. The exact mechanism behind why stem cells helped rats and pigs in animal studies and now seem to have helped some patients is un- clear. Feldman theorizes that the Searching for Innovative and cells turn on repair signals inside the body, act as nursemaids for the damaged cells and slow, if not halt, the progression of the disease. “This was something that had STEM-Savvy Talent? never been done before, and there was a lot of skepticism in the med- ical community — and ‘skepticism’ is a pretty polite word,” Feldman said of a procedure to inject stem cells into the spine of patients. “Now that we’ve taken this idea and not only shown it’s feasible but safe, it’s opened up doors.” In July, Clive Svendsen, Ph.D., director of the Cedars-Sinai Regener- ative Medicine Institute in Los Ange- les, was awarded an $18 million grant from the California Stem Cell Agency to do a Phase 2A study of 18 patients patterned after the UM- Emory study, using a stem cell line he derived. The study, designed to test both safety and efficacy, will be done at three sites, including six opera- tions by Boulis at Emory. Svendsen, with Boulis, had be- gun work on the line in 2003 at the University of Wisconsin before Boul- is’ partnership with Feldman. Troubles with that line, which in- cluded a drug that was genetically engineered into the stem cells, took years to surmount. Svendsen’s stem cells are engi- neered to use a drug called glial-de- rived neurotrophic factor, a growth factor designed to help protect neu- rons from the effects of ALS. Feldman is optimistic that Phase 2 trials on ALS patients will be so successful that she will be able to get funding and gain FDA approval to begin similar stem cell trials on patients with Alzheimer’s disease. Kettering University She has been working on a grant from the National Institutes of Health to fund an Alzheimer’s study. Partner with Kettering and use the nation’s most advanced professors and students to build a “We shouldn’t limit this technol- highly productive professional workforce. Innovative research is infused throughout all of our ogy to one disease,” Feldman said. In part, that’s because there is a engineering, science, math and business programs. Kettering University’s renowned experiential far larger population of Alz- learning and cooperative education program is known for educating leaders for a global society. heimer’s patients than ALS pa- tients, and in part because the This is the Kettering Advantage. brain can be injected with far more stem cells than can the spinal cord. As a result, trials should be easi- er to conduct and therapies easier to devise. Said Feldman: “Alzheimer’s is going to be easier than ALS.” NHWWHULQJHGXUHVHDUFK ÀLQWPL H[W Tom Henderson: (313) 446-0337, [email protected]. Twitter: @tomhenderson2 20121029-NEWS--0013-NAT-CCI-CD_-- 10/26/2012 10:05 AM Page 1
October 29, 2012 CRAIN’S DETROIT BUSINESS Page 13 Innovations: University Research Where can you find the latest Patient: ‘This at least gives us hope’ news about university research that addresses the needs of business ■ From Page 11 and industry? understanding that it was a safety trial. Doctors explain that to you. They give you paperwork that ex- plains that it’s a trial designed to test safety, not to help you, and that it could hurt you,” Harada said. “But I can’t lie to you. In your mind, you’re thinking: You can’t win the lottery if you don’t buy a ticket.” Two weeks after his operation, Harada thought he noticed a feel- ing of strength in his legs. “And I Surgeons at Emory didn’t feel as tired as I had before,” University injected he said. “So I asked my wife to stem cells into the come over and give me a test.” spines of patients He sat down. She braced her with ALS during hand against the top of his knee Phase 1 trials. and he pushed. Instead of nothing COURTESY OF EMORY UNIVERSITY happening, his leg went up in the considerable benefit. study, we’ll select patients who are air. They did it again. She pushed While he uses two canes to move younger, who are earlier stage and harder. He lifted his leg. A third around, barely can walk 100 yards who are healthier. I’m sure we’re time. She pressed really hard. He and has lost half the muscle tissue going to have some dramatic out- raised his leg. in his arms and legs, Tessaro has comes.” “It was shock. ‘Is this real? This retained strong function in his When asked, if things go as well on the MICHIGAN TECH isn’t supposed to happen,’ ” Hara- lungs. This long after the onset of as she hopes in Phase 2, how long da said. “No matter how hard she symptoms, he still tests at 120 per- until treatment is approved for the RESEARCH NEWS WEBSITE, tried, even with two hands, she cent of average lung function. general public, Feldman said: “Op- that’s where. couldn’t keep my leg on the “It’s breathing difficulties that timistically? Three years. Realisti- ground.” eventually kill you, and my vocal cally? Five.” cords are still “If you look at the ALS commu- Find out how Michigan Tech is He started cry- leading the way in ing, and so did his healthy. I’m the nity, hope isn’t a commodity it wife. I’m glad ... I best-conditioned has. We all know realistically how r BMUFSOBUJWFFOFSHZ “If anyone was “ guy with a fatal this is going to end,” Harada said, r DPNQVUFSBOETPGUXBSF more surprised could be a part of disease you’ve “but this at least gives us hope. JOOPWBUJPO ever seen,” Tes- “Even if this wasn’t meant to than me, it might r NJOJOH have been my doc- something bigger saro said, break- help me, I’m glad in an altruistic tors,” Harada said. ing into a laugh. way I could be a part of something r FOWJSPONFOUBMJTTVFT He called the that will help people “This terrible bigger that will help people down doctors at Emory thing isn’t with- the road. It could be a legacy for and told them down the road. out its light mo- me to leave my kids.” www.mtu.edu/research-news what was happen- ” ments. Tom Henderson: (313) 446-0337, ing. They told him Ted Harada, ALS patient “I haven’t got- [email protected]. Twitter: about placebo ef- ten healthier, @tomhenderson2 fects. When he and there’s no went in to be tested, they knew way to know for sure, but you can that what was going on in Hara- argue if I hadn’t had the injections, da’s body had nothing to do with I’d be worse. I think it means placebos. No longer needing canes something that I’ve still got the to tuck his kids into bed wasn’t a same lung function.” placebo effect. “Anecdotal” is a word research- “Whatever was going on, I was go- es use to tamp down on enthusi- ing to enjoy it,” Harada said. “Every asm, although it’s not necessarily night I went to bed worried I’d wake a word favored by Eva Feldman, up and it would be gone, that I’d director of the A. Alfred Taubman have made the whole thing up.” Medical Research Institute at UM Instead, “for two or three and one of the trial’s designers. months, I was on an upward climb. “If I believed this was only anec- I continued to improve in quan- dotal, I wouldn’t be putting in all tum leaps.” the time and energy I am,” she said Harada said he plateaued after a of the stem cell procedures and few months, then this past March early claims of positive results. started to regress gradually. Feldman helped design the He said he experienced a modest Phase 1 trial of 15 patients at improvement after the second op- Emory University and the upcom- eration, but nothing nearly as dra- ing three-patient Phase 1B trial THANK YOU! matic as the first. “I’m feeling bet- and the 32-patient Phase 2 trial. ter, but it would have been greedy The Phase 1 trial was to test safe- As we celebrate our centennial anniversary, we are grateful for the valued to expect such good results again,” ty only. The Phase 1B trial will test he said. safety and efficacy, and the Phase 2 independent agents and customers who have supported our success. Ed Tessaro, 66, is a retired trial will test efficacy. Since the Macy’s Inc. executive in Alpharet- Phase 1 trial was designed to test ta, Ga. He was a marathon runner, safety only, Feldman must be care- For the next 100 years, our pledge is to remain committed to our agents mountain biker and mountain ful for fear of running afoul of com- climber when he started showing menting too much about whether while continuing to provide best-in-class claims service and unparalleled symptoms of ALS four year ago. patients seemed to get better. He felt a weakness in his leg dur- But since Tessaro and Harada WorkSafe tools to our customers. ing a half-marathon in Bangkok in have gone public about their oper- 2008 and didn’t think much of it. ations and the results, she’s free to But the weakness didn’t go away. comment as well. To learn more about Accident Fund and the tools we offer to make your Like Harada, Tessaro was one of “We had a number of other pa- the three patients in the trial who tients in the first trial that, while workplace safe, visit AccidentFund.com/WorkSafe. got two rounds of injections, the not as dramatic as Ted, had effects first in April 2011 and the second that could be deemed to have re- July 20. sulted from their operations,” she His anecdotal evidence for an im- said, carefully choosing her words. provement in health isn’t as strong “Ted Harada’s case will not be as Harada’s. But Tessaro is con- unique. He had a clear and pretty 10451 vinced that the stem cells were of exciting outcome. For the Phase 2 20121029-NEWS--0014-NAT-CCI-CD_-- 10/26/2012 11:25 AM Page 1
Page 14 CRAIN’S DETROIT BUSINESS October 29, 2012 Innovations: University Research Program at WSU gives students a launchpad to entrepreneurship
BY CHRISTINE SNYDER through the process of business ate college, you are going to get a SPECIAL TO CRAIN’S DETROIT BUSINESS ownership. job at Ford for the next 50 years. I didn’t know that a lot of what “It can’t be missed on campus,” “Maybe you will, but after five Entrepreneurship was the fur- “ said Ned Staebler, WSU’s vice years you may want to start your thest career path from Nilesh I was interested in could be president for economic develop- own thing. Or it’s OK to go work at Joshi’s mind when he was a mas- ment, referring to the glassed-in, something that’s 15 people. It’s a ter’s degree student in chemistry commercialized. fishbowl-like area at the entrance new paradigm in career plan- at Wayne State University. The re- ” of the undergraduate library. ning.” cent graduate said he envisioned a Nilesh Joshi, who’s being advised by the LaunchPad “It is really designed to make Joshi saw the LaunchPad and future in academics. But he had you realize that entrepreneurship one day decided to go in to bounce these ideas ... . “We provide an outlet for stu- Foundation based on its national is a potential career path,” Stae- some of his ideas off the staff. He That’s exactly what Blackstone dents to explore their ideas,” Agee model in partnership with Walsh bler said. “Whether that means was asked a bunch of questions LaunchPad, on the Wayne State said. College and Automation Alley, both starting your own business or go- for which he didn’t know the an- campus, is intended for, said The program was started three based in Troy. The LaunchPad ing to work at an entrepreneurial swers. years ago through the New York was designed to encourage and small business. To get away from Aubrey Agee, the LaunchPad’s se- “We don’t pressure them,” Agee nior program administrator. City-based Blackstone Charitable guide budding entrepreneurs the mindset that when you gradu- said. “It’s a come-as-you-are type of office. If they want to come in and talk about an idea, we tell them, ‘To get from point A to point B, you have to take these steps first.’ ” For many of the 400 students in the LaunchPad system at WSU, that’s where the process ends. For others, “they can get an MBA crammed into them,” Agee said. “It depends on how far they want to take it.” Agee said about 200 students have submitted ideas to the LaunchPad, and about 60 of those have some thought behind them. About 25-30 students are working to make their ideas come to fruition. Joshi, whose ideas revolved around the sustainable manufac- ture of certain chemicals with a fo- cus on carotenoids, went back and researched the market and compe- tition and all the other questions he was asked during his initial consultation. He then returned to the LaunchPad. “There’s a lot that goes into business,” Joshi said. “In science, we focus on how you make. But once you make it, how do you mar- ket it? It’s not something we (nor- mally) focus on. “I found out my idea was vi- able.” Said Agee: “We teach them busi- ness acumen. Their business acu- men improves when they work on their business idea.” For technology-based business- es deemed ready, as Joshi’s con- cept eventually was, the Launch- Pad encourages them to pitch for a Warrior Fund grant funded through the Michigan Initiative for Innovation & Entrepreneurship, a con- sortium of Michigan public uni- versities. “When they are working on the pitch, they are improving their business ideas,” Agee said. “They go into hard research about what their customers want and what their competitors are doing and building their financial model to see if they can make money or not. “It’s a little money, but it’s going to ... give them a better chance at becoming a legitimate company.” Joshi pitched and won $4,850 from the Warrior Fund. This seed money enabled him to secure a lab at TechTown on the WSU campus, where he’s working on his proof of concept. “I didn’t know that a lot of what I was interested in could be com- mercialized,” Joshi said. “I hope my technology does get commer- cialized. I would like to be a busi- ness owner.” DBpageAD_DBpageAD.qxd 10/19/2012 10:19 AM Page 1
Discovery driven
Whether it’s helping a life sciences startup dream become a reality, using space-based technology to uncover earthen fossils or applying the latest electronic printing technology to track consumer products, Western Michigan University scientists are creating higher ed/private sector partnerships that spell success.
WMU is a Carnegie-designated high research university offering more than 240 degree programs to 25,000 students. A new medical school is planned to open in 2014.
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WWWWMICHEDURESEARCH 20121029-NEWS--0016-NAT-CCI-CD_-- 10/25/2012 3:16 PM Page 1
Page 16 CRAIN’S DETROIT BUSINESS October 29, 2012 Innovations: University Research After raising customers, MSU spinoff InPore raises funds
BY TOM HENDERSON Roston, who has a doctorate in CRAIN’S DETROIT BUSINESS robotics mechanical engineering from Carnegie-Mellon University in Buoyed by good news — cus- Pittsburgh, worked at the NASA Jet tomers are now providing a rev- Propulsion Lab in Pasadena, Calif., enue stream and attorneys recent- in the late 1980s on the Mars Rover ly determined that the company project. He has held a variety of isn’t infringing on any patents — management positions at technolo- Gerry Roston has hit the fundrais- gy companies — including Erie, ing trail on behalf of InPore Tech- InPore Technologies Pa.-based General Electric Trans- founder Thomas nologies Inc., a spinoff from Michi- portation, a division of GE — before Pinnavaia (left) and gan State University. becoming a consultant for Ann Ar- CEO Gerry Roston at Roston is the CEO of InPore, a bor Spark, the economic develop- the company's tenant of MBI International, a tech ment nonprofit. production lab, where incubator in East Lansing former- Roston is also president of the it makes porous ly known as the Molecular Biotech- New Enterprise Forum, an Ann Ar- ceramic powders used nology Institute. MBI is run by the bor group that provides coaching in industrial-scale water purification Michigan State University Foundation. and mentoring to startups. InPore produces two trade- systems and used to InPore was founded by Thomas make polymers marked products, both made of Pinnavaia, who has the title of dis- stronger and more porous ceramic powders: tinguished university professor of resistant to fire. Ⅲ Mezzopore, which makes the chemistry at MSU. He has another AL GOLDIS membranes used in industrial-scale company, Claytec Inc., which makes went there looking for someone to navaia said. “I thought, ‘OK, Angels and the Detroit-based Great water purification systems far more and sells a variety of porous forms help me grow the concept into a maybe.’ Lakes Angels as he tries to raise a permeable, resulting in a substan- of silica, aluminosilicates, alumina company,” he said. “It turned out to be a perfect round of $5 million to ramp up pro- tial reduction in the energy needed and other related oxides. That someone turned out to be match for me because my business duction and for marketing and to force water through them. Early in 2010, Pinnavaia went to Roston, who heard Pinnavaia’s acumen is very limited, and Gerry sales. He hopes to raise $1.8 mil- Ⅲ Silapore, which makes poly- an event at Ann Arbor Spark to fig- pitch. had helped many companies get lion of that by early next year and mers stronger and more resistant ure out how best to commercialize “He came up to me and said, organized and launched. He’s real- the remaining $3.2 million by the to fire. some patents he had at MSU. “I ‘You’re going to need me,’ ” Pin- ly taken us a long way.” end of the third quarter of 2013. Said Roston; “Tom’s a brilliant Roston said he embarked on this scientist, but one of the challenges current fundraising round after that university faculty members hitting two key milestones. have is they know how to write One was being told recently by grant proposals and do research, patent attorneys that InPore’s 40 but they don’t know how to take patents provide a barrier to entry something to commercialization.” for competitors and that the mar- The challenge they both had was kets on which InPore is focusing trying to take compounds with in- don’t impinge on others’ patents or teresting chemical properties and require the company to license figure out what applications could any other patents. make money, a process made easi- The second milestone is being er by early success in raising able to show would-be investors funds and obtaining grants. that InPore has customers that Since being founded in 2010, In- have validated the technology and Pore has raised $2.6 million — is producing revenue. Roston said $560,000 from angel investors, $1.6 he has nondisclosure agreements million in U.S. Small Business In- with six water purification compa- novation Research grants and nies, three of them multinationals, $450,000 from the Michigan Econom- that are evaluating the Mezzopore ic Development Corp., including product. $100,000 that InPore received in Grand Rapids-based Noble Poly- 2010 for winning the first Smart- mers, a division of Cascade Engi- Zone award from the Michigan Pre- neering Inc., is an early customer Seed Capital Fund. for Silapore. Noble is a com- The first two SBIR grants, total- pounder of plastics for industrial ing $650,000 from the National Sci- customers, supplying plastic pel- ence Foundation, were to investigate lets for the auto industry and for how InPore powders might make use in home and office products. auto parts lighter. Meagan Marko, a senior materi- “Our materials worked, but als engineer at Noble, said she has they didn’t provide sufficient im- been testing Silapore powder for provement to compete commer- about a year and evaluating how it cially with other additives,” Ros- can be used for products it sup- ton said. plies to customers. At the time InPore won its She said Silapore is a good syn- SmartZone grant, it hoped that the ergist, meaning it improves the first commercial application would properties of other fire retardants be to improve the strength and Noble adds to its plastics. As those rigidity of wind turbine blades. fire retardants become more effi- Again, tests showed a modest im- cient, less is needed, saving mon- provement but not one that was ey. cost-effective. “Originally, the plan was to val- Now, Roston thinks he has two idate their materials,” Marko markets that do make commercial said. “We’ve done that. Now, we’re sense — water purification and looking at how we can add their making polymers less flammable powder to products for our cus- — and is generating revenue in tomers. both. He projects revenue of “And there are other potential $273,000 this year, $715,000 next uses we’ve noticed in our testing year and $1.9 million in 2014, and that we’re starting to follow up on then substantial increases to $12.6 — as an additive to enhance other million and $22.2 million the next polymer characteristics. I proba- two years. bly shouldn’t get into what they Roston is pitching to venture are, but it’s very promising.” capitalists, high-net-worth indi- Tom Henderson: (313) 446-0337, viduals and angel groups includ- [email protected]. Twitter: ing the Midland-based Blue Water @tomhenderson2 20121029-NEWS--0017-NAT-CCI-CD_-- 10/25/2012 3:17 PM Page 1
October 29, 2012 CRAIN’S DETROIT BUSINESS Page 17 Innovations: University Research The firm worth Wayne State changes current course of listening to is the firm that high-tech research with Nextek connection listens to you.SM
BY CHRISTINE SNYDER SM SPECIAL TO CRAIN’S DETROIT BUSINESS Talk to Foley. We’re listening.
The ink may not be dry on the new contract between Detroit- based Nextek Power Systems and For 170 years, Foley has made it our mission to Wayne State University, but the im- plications of the agreement re- find out exactly what our clients want and deliver ignite a battle that Thomas Edison it. So when our Detroit clients asked for local fought years ago and won decided- access to the strength of a national law firm, Foley ly. Until now. Nextek, a TechTown company recruited the city’s top talent to establish our Detroit with three labs in the NextEnergy office and provide trusted local advisors who could Center, focuses on direct current power systems. CEO Paul Savage leverage our national resources. It’s one more said that although most of us get reason Foley received a top five ranking nationally power through alternating current for delivering exceptional client service in a recent — commonly known as AC — DC is more efficient and more in line with B.D. COLEN/ADIOL survey of Fortune 1000 corporate counsel. today’s electrical needs. Efficiency Paul Savage, CEO of Nextek Power Systems, says direct current power systems are more efficient and more in line with today’s technology. improvements range from 10 per- Learn more about how Foley can add value to your business. Contact cent to 42 percent, Savage said. More than 100 years ago, Edison Why it’s so important to people equipment that helps distribute Detroit Office Managing Partner Daljit S. Doogal at [email protected]. was the leading proponent of AC like Sawasky is that data centers that power is more reliable than distribution. He and George West- consume 2 percent of U.S. energy. AC equivalents,” Sawasky said. Foley.com inghouse — the foremost propo- “If you think about this, that’s Lower costs and higher efficien- nent of DC — engaged in the “Bat- an astounding number,” he said. cy are other expected benefits, said tle of the Currents.” Edison won, “The overall year-to-year growth Saber, who pointed out that better and at the time it made sense. rate for data center increases of efficiency means less heat genera- “The great virtue of alternating power consumption is in the 35 tion, fewer cooling requirements current is you can send at long dis- percent range in the U.S. and less room needed, thus increas- #5*$MJFOU4FSWJDF"5FBN 5IF#5*$POTVMUJOH(SPVQ 8FMMFTMFZ .BTTBDIVTFUUT tances with not a lot of loss,” Sav- “So we have more demand for ing the profitability of building age said. “That was great for the our services, and yet budgets con- space. first 120 years of electrical sys- tinue to decline. We’re trying to “We will be able to ... not only #0450/t#3644&-4t$)*$"(0t%&530*5t+"$,40/7*--&t-04"/(&-&4 tems, when most of the loads were contend with that and yet meet the support grad students’ thesis pa- ."%*40/t.*".*t.*-8"6,&&t/&8:03,t03-"/%0t4"$3".&/50 demands of our researchers and pers and their continued educa- 4"/%*&(0t4"/%*&(0%&-."3t4"/'3"/$*4$0t4)"/()"*t4*-*$0/7"--&: heating elements and incandes- 5"--")"44&&t5".1"t50,:0t8"4)*/(50/ %$ student constituents.” tion,” Saber said, “but document cent lights.” ª'PMFZ-BSEOFS--1t"UUPSOFZ"EWFSUJTFNFOUt1SJPSSFTVMUTEPOPUHVBSBOUFFBTJNJMBSPVUDPNF Today, it’s not so great, now that Nextek is a founding member of through this work what is the ener- /$MBSL4USFFU 4VJUF $IJDBHP *-tt electronic devices have come into the EMerge Organization along with gy-efficiency savings and space sav- common use. Because of the prolif- Detroit-based DTE Energy Co.; Char- ings for going into an all-DC world.” eration of devices such as comput- lotte, N.C.-based Duke Energy; and ers, half a building’s load is DC — Southern California Edison, all of and it’s growing, Savage said. “Ba- which look for ways to advance sically, anything with a chip in it their mission with DC loads and is a DC device.” microgrids. The problem is that the power “I am very pleased with how for those devices has to be convert- utilities are coming on board,” Research for a Brighter Future ed from AC to DC. And renewable Savage said. “It hasn’t happened energy, such as solar, is DC-pro- quickly, but we see more coming Lawrence Technological University is leading the way to a ducing and also has to be convert- our way.” ed into AC — only to get converted When WSU is connected to Nex- safer, healthier world. From groundbreaking back into DC as it’s used. tek, it will be the most diverse mi- “It’s the long way around, and we crogrid in the U.S. if not the world, research to improve the longevity of provide a shortcut,” Savage said. Savage said. bridges and a study on electrospun “We avoid unnecessary conver- “What’s exciting is we are going sions of power inside a building. from smaller systems ... to now nanofibers for knee ligament regeneration Here at NextEnergy, not only do we campuswide systems. That’s thril- generate the power on our rooftop ling for us because it shows how to developing smart phone-integrated through solar energy in DC, but we DC microgrids can really benefit glucose monitors for diabetes patients, use it in DC. We are minimizing the the greater grid by doing the inte- times you have to convert the volt- gration of storage and distributed Lawrence Tech’s faculty and students are age from AC to DC.” renewable energy without (taxing) While Nextek has done more the grid. conducting leading-edge research to create than 120 installations of DC power “We are actually creating head- systems in the U.S. and abroad — a brighter future. room in the AC infrastructure including converting a great deal while creating efficiency.” of the NextEnergy building load to Jim Saber, vice president of DC — what the company will do at Wayne State will test its mettle. business development and govern- Explore over 25 master’s and doctoral programs WSU will put a high-perfor- ment relations for NextEnergy, in architecture, business administration, computer mance research computing infra- said, “We believe, through the re- science, information systems, engineering, structure — HPC for short — into search and what’s been done in the and interior design, as well as 20 accelerated certificate programs in growing fields including the DC-powered research center at past, this will be the first DC com- puting center with a renewable en- bioinformatics, sustainability, defense, energy, NextEnergy. and urban design. “It will be part of our overall ergy input in the United States do- ing real work.” day-to-day research support capac- Waive your application fee at ity on the IT side,” said Joseph The contract between WSU and www.ltu.edu/applyfree Sawasky, chief information officer Nextek runs until 2014. During of computing and information that time, Sawasky said, the impli- technology at WSU. “So if Wayne cations for the future of power sys- 2013 2013 2013 tems will be scrutinized. AMERICA’S BEST BEST COLLEGES MILITARY State research scientists are doing UNIVERSITIES in the Midwest FRIENDLY decoding and doing other research “The expected benefit for us is to U.S. News & Princeton SCHOOL that involves intensive computing validate that DC-powered distribu- World Report® Review® G.I. Jobs® and storage, we can support part of tion systems are a good, solid, vi- Lawrence Technological University that through microgrids and DC- able, production-ready alternative 21000 West Ten Mile Road, Southfield, MI 48075-1058 | 800.225.5588 | [email protected] | www.ltu.edu powered infrastructure.” in the United States and that the DBspreadAD_DBspreadAD.qxd 10/19/2012 9:13 AM Page 1
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Page 20 CRAIN’S DETROIT BUSINESS October 29, 2012 Knight Foundation splits $19M for arts between cultural institutions, contest
BY SHERRI WELCH $2.25 million to the Detroit In- will be invited to submit their best CRAIN’S DETROIT BUSINESS stitute of Arts to experiment with art idea in 150 words or fewer. new programs that take its art out For now, the foundation wants In two separate announcements into the community, such as its In- to give the community time to last week, the John S. and James L. side/Out program. come up with new art concepts Knight Foundation committed to $2.25 million to the Detroit that are very much Detroit-cen- more than $19 million in funding School of Arts to build a pipeline of tric, Scholl said. for the arts in Detroit. future artists by inviting profes- Those ideas can come from indi- The foundation pledged sionals from prominent cultural vidual artists, small collectives, $10.25 million in grants to shore up institutions to mentor and teach arts institutions, other nonprofits leading Detroit-area cultural insti- students. or companies, Scholl said. tutions and encourage them to en- $2.25 million For example, in gage audiences in new ways. It to the Detroit Sym- Miami, a group of also committed $9 million to fund a phony Orchestra to marine biologists local art contest for three years, expand the audi- There’s ... this pitched an idea to encouraging the development of ence for classical “ photograph and creative art projects from any- music through ex- organic noise we display living where in the community. panded webcasts coral in time Knight Foundation leaders say and mobile con- keep hearing (about lapse. Another the efforts play to Detroit’s grow- tent. group takes visi- ing reputation in the arts world. $1 million to Detroit) that’s tors on a “weird “There’s sort of this organic the Michigan Opera driven, in large bus tour” of Mia- noise we keep hearing (about De- Theatre to bring mi. troit) that’s driven, in large part, opera perfor- part, by culture and “What we’ve by culture and the arts,” said Den- mances into the found in doing nis Scholl, vice president/arts at community and the arts. this (for) five the foundation. commission a ” years in Miami new opera based Despite all of the difficulties of Dennis Scholl, Knight Foundation and three years in the region and its cultural institu- on the city’s rich Philadelphia is tions, “there are a number of insti- cultural heritage. (that) the best arts tutions that kept over and over $1 million to the Sphinx Organi- ideas don’t necessarily come from again finding a way to both pre- zation to support its annual Sphinx (nonprofits),” Scholl said. sent artistic excellence (and) also Competition in Detroit, which de- Since launching the community engage their audiences in different velops young, classical musicians arts contest five years ago, the ways,” he said. of color. Knight Foundation has invested “And that’s the thing we’re most $750,000 to the Charles H. $22.5 million in 180 projects in Mia- excited about.” Wright Museum of African American mi and Philadelphia. The grants awarded under the History to use the arts to foster an It plans to hold the contest for Knight Arts Challenge are: interest in reading by incorporat- three consecutive years in Detroit, ing interactive cultural experi- awarding funding for one to three ences as part of the Children’s years to ideas that might come Book Fair. from unheard-of artists, business- $750,000 to the Arab American es or others, Scholl said. HEALTH CARE SUMMIT IS TUES. National Museum to support cross- “The thing that’s amazing about cultural understanding through a this is you will get ideas you As the health care industry looks forum on the role of arts in build- wouldn’t have (otherwise) gotten,” at changes in 2013 and 2014 from ing and engaging communities. said Alberto Ibargüen, president of the Patient Protection and Separately, through the Knight Affordable Care Act, the struggle the Knight Foundation. Arts Challenge, the foundation is remains to provide better care at a “We wouldn’t have decided to do lower cost. beginning to promote a three-year, this in Detroit if we didn’t think $9 million contest plans to launch Finding common ground is the there was so much to build on,” focus of this year’s Crain’s Health in Detroit in March. Similar con- given how much the arts is woven Care Summit, 7:30 a.m.-2:30 p.m. tests have been established in Mia- into so many aspects of the com- Tuesday at the San Marino Club in mi and Philadelphia. munity, he said. Troy. After the contest is officially Sherri Welch: (313) 446-1694, Following keynote speaker launched at www.knightarts.org [email protected]. Twitter: @sher- Princeton University health in March, anyone in metro Detroit riwelch economist Uwe Reinhardt will be a panel of corporate executives and health care experts discussing the differences. Tom LaSorda, former CEO of Chrysler Group LLC, will moderate the panel, joined by Nancy Schlichting, CEO, Henry Ford Health System; Keith Pitts, vice chairman, Vanguard Health Systems Inc.; Scott Eathorne, CEO, St. John Partners in Care; Rick Popp, director of employee benefits, Ford Motor Co.; and Thomas Simmer, senior vice president, Blue Cross Blue Shield of Michigan. Blue Cross is presenting sponsor. A kickoff event day will focus on corporate wellness with speaker Dee Edington, director of the University of Michigan Health Management Research Center and a wellness consultant. Sponsor of CELEBRATING 50 YEARS the breakfast is Priority Health. MANUFACTURING QUALITY PRECAST CONCRETE BUILDING & UTILITY PRODUCTS Cost is $99 for Crain’s subscribers, $150 for non- subscribers, $125 for non- subscribers who take advantage of a special offer that includes a one- year subscription, and $85 for groups of 10 or more. Register at www.kerkstra.com - 800.434.5830 crainsdetroit.com/events. 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Risk. Reinsurance. Human Resources. 20121029-NEWS--0023-NAT-CCI-CD_-- 10/26/2012 11:00 AM Page 1
October 29, 2012 CRAIN’S DETROIT BUSINESS Page 23
CRAIN'S LIST: LARGEST BUSINESS INSURANCE AGENCIES Ranked by 2011 revenue
Company Premium Address Revenue Revenue volume Detroit-area Total U.S. Revenue source Compensation Phone; website ($000,000) ($000,000) ($000,000) employees employees Rank Top executive 2011 2010 2011 2012 2012 Retail Wholesale Services Other Commissions Fees Amerisure Mutual Insurance Co. $495.3 $450.0 NA 355 NA NA NA NA NA NA NA 26777 Halsted Road, Farmington Hills 48331 1. (248) 615-9000; www.amerisure.com Richard Russell, president and CEO Meadowbrook Inc. 134.9 134.8 1,300.0 278 1,039 36 0 62 2 21 79 26255 American Drive, Southfield 48034-6112 2. (248) 358-1100; www.meadowbrook.com Robert Cubbin, president and CEO Aon Corp. 113.1 120.3 NA 131 33,000 85 0 15 0 40 60 3000 Town Center, Suite 3000, Southfield 48075 3. (248) 936-5200; www.aon.com Carol Williams, resident managing director, CEO, Aon Risk Solutions; Paul Barbick, Michigan market leader, Aon Hewitt; and LeAnne McCorry, executive chairman and managing principal, Aon Risk Solutions Brown & Brown 70.0 80.3 NA 349 5,664 30 70 0 0 98 2 35735 Mound Road, Sterling Heights 48310 4. (586) 977-6300; www.bbdetroit.com Eugene LoVasco, president, Sterling Heights; David Lucas, president, Fenton; Angela Garner, president, Saginaw; and Paul Glantz, president, Troy Wells Fargo Insurance Services 24.9 25.4 NA 129 7,525 100 0 0 0 45 55 4000 Town Center, Suite 800, Southfield 48075 5. (248) 353-5800; wfis.wellsfargo.com Kevin Youngs, managing director, Southfield and Bill Rothwell, managing director, Grand Rapids Valenti, Trobec, Chandler Inc. 20.1 19.7 122.5 123 126 98 0 2 0 98 2 1175 W. Long Lake Road, Troy 48098 6. (248) 828-3377; www.vtcins.com Alan Chandler, CEO and president Hylant Group 15.9 16.2 193.6 91 580 99 0 0 1 87 13 24 Frank Lloyd Wright Drive, Suite J4100, Ann Arbor 48105 7. (734) 741-0044; www.hylant.com Mark Miller, regional vice president, Michigan Kapnick Insurance Group 15.5 14.0 NA 50 123 100 0 100 0 90 10 26100 American Drive, Suite 300, Southfield 48034 8. (248) 352-4455; www.kapnick.com Robert Weiland, executive vice president, corporate; Stephen Peck, president, benefit services Michigan Financial Cos. Inc. 14.1 11.3 12.9 90 125 100 0 0 0 NA NA 28411 Northwestern Highway, Suite 1300, Southfield 48034 9. (248) 663-4700; www.michiganfinancial.com Nick Valenti, president and CEO McGraw Wentworth 13.7 12.5 454.0 70 70 NA NA NA NA 95 5 3331 W. Big Beaver Road, Suite 200, Troy 48084 10. (248) 822-8000; www.mcgrawwentworth.com Thomas McGraw, president and principal Ralph C. Wilson Agency Inc. 6.5 6.2 NA 45 45 100 0 0 0 98 2 26026 Telegraph Road, Suite 100, Southfield 48086 11. (800) 638-1174; www.rcwa.net Stefano Vannelli, president and CEO Daly Merritt Insurance 6.2 4.6 68.4 39 39 98 0 1 1 99 1 100 Maple, Wyandotte 48192 12. (734) 283-1400; www.dalymerritt.com Martin Daly, president and CEO Alliant Insurance Services 5.6 5.5 40.0 21 1,474 NA NA NA NA NA NA 1050 Wilshire Drive, Suite 210, Troy 48084 13. (248) 540-3131; www.alliantinsurance.com Jeffrey Swarbrick, executive vice president The Huttenlocher Group 5.4 4.6 NA 42 42 100 0 0 0 95 5 1007 W. Huron, Waterford Township 48328 14. (248) 681-2100; www.hgway.com David Huttenlocher, CEO Korotkin Insurance Group 4.8 4.7 NA NA 43 NA NA NA NA NA NA 26877 Northwestern Highway, Suite 400, Southfield 48033 15. (248) 352-9124; www.korotkin.com Kenneth Korotkin, president Oswald Cos. 4.4 3.0 27.0 20 257 85 15 99 1 70 30 700 Forest Ave., Birmingham 48009-6658 16. (248) 433-1466; oswaldcompanies.com Donald Engle, senior vice president, branch manager J.S. Clark Agency Inc. 3.4 3.6 NA 20 20 NA NA NA NA NA NA 25900 W. 11 Mile Road, Suite 210, Southfield 48034 17. (248) 355-9600; www.jsclarkagency.com Joel Clark, president and CEO Capital Insurance Group 3.0 3.0 28.1 22 22 NA NA NA NA NA NA 1263 W. Square Lake Road, Bloomfield Hills 48302 18. (248) 333-2500; www.capitalinsuranceagent.com Robert Moglia Jr., president; Edmund George, vice president; Tom Moglia, vice president; and Donn Johnson, vice president Goodman Venegas 2.8 2.7 28.0 15 15 NA NA NA NA 90 10 2800 Livernois, Suite 170, Troy 48083 19. (248) 740-9090; www.goodmanvenegas.com M. Paul Venegas, president; Regina Goodman, co-owner Insurance Advisors Inc. 2.7 2.7 20.0 30 30 NA NA NA NA NA NA 8884 Commerce Road, Commerce Township 48382 20. (248) 363-5746; www.ins-advisors.com John Walker, president
This list is an approximate compilation of the largest such agencies in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. No. 5 on last year's list, Cambridge Consulting Group, which Crain's believes would make this list, did not provide figures and a reliable estimate could not be made. 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 revenue figures may vary. NA = not available. LIST RESEARCHED BY BRIANNA REILLY 20121029-NEWS--0024-NAT-CCI-CD_-- 10/26/2012 11:27 AM Page 1
Page 24 CRAIN’S DETROIT BUSINESS October 29, 2012
CRAIN'S LIST: LARGEST AUTOMOTIVE AFTERMARKET PARTS SUPPLIERS Ranked by 2011 automotive aftermarket sales
Aftermarket sales Company revenue Company ($000,000) ($000,000) Rank Phone; website Top local executive 2011/2010 2011/2010 Automotive aftermarket products 1. Continental Automotive Systems U.S. Inc. Samir Salman $3,000.0 B $8,800.0 C Brake parts, fuel systems, actuators, HVAC blower and fan systems, screen and (248) 393-5300; www.conti-online.com CEO, Continental North America $3,000.0 B $7,740.0 C headlight washer systems, sensors, tire pressure monitoring systems Federal-Mogul Corp. Michael Broderick 2,325.0 6,910.0 Braking, engine, sealing, service and steering solutions 2. (248) 354-7700; www.federalmogul.com co-CEO, Federal-Mogul and CEO, 2,327.0 6,219.0 vehicle components segment 3. TRW Automotive Holdings Corp. John Plant 1,348.3 16,244.0 Anti-lock braking systems (734) 855-2600; www.trwauto.com chairman, president and CEO 1,220.0 14,400.0 4. Affinia Group Inc. Terry McCormack 1,014.0 D 1,478.0 D Brakes, chassis, filtration products (734) 827-5400; www.affiniagroup.com president and CEO 1,951.0 1,991.0 5. NGK Spark Plugs (USA) Inc. Norihiko Adachi 450.0 E 1,700.0 E Spark plugs, oxygen sensors, ignition wire sets (248) 926-6900; www.ngksparkplugs.com president and CEO 450.0 E 1,700.0 E 6. TriMas Corp. David Wathen 384.0 1,084.0 Trailer products, brake control solutions, extensive towing product lines, cargo (248) 631-5450; www.trimascorp.com president and CEO 339.0 902.5 F management systems and other accessories 7. Denso International America Inc. Hikaru "Howard" Sugi 359.5 6,200.0 C Air and oil filters; air conditioning compressors, spark plugs, starters (248) 350-7500; www.densocorp-na.com president and CEO 345.0 E 6,090.0 C 8. Mahle Industries Inc. Roland Zitt 190.0 E 1,442.9 G Pistons, cylinder liners, valves, gaskets, bearings, piston ring sets, filters, (248) 305-8200; http://www.us.mahle.com president 183.0 E 1,198.0 G turbochargers 9. Trico Products Corp. James Finley 152.0 B 396.0 B Wiper blades, refills, washer pumps, wiper arms (248) 371-1700; www.tricoproducts.com president and CEO 154.0 C 400.0 C 10. TI Automotive Ltd. Bill Kozyra 130.0 3,000.0 Fuel system replacement parts (248) 494-5000; www.tiautomotive.com chairman, president and CEO 125.0 E 2,500.0 10. Valeo Inc. Francoise Colpron 130.0 1,897.0 Clutch kits, flywheels, hydraulics, alternators, starters, radiators, condensers, (248) 619-8300; www.valeo.com president, North America 119.8 1,459.0 compressors, motor fans, heater cores, blowers, wipers
This list of aftermarket companies is an approximate compilation. For companies based in Detroit and divisions of U.S.-based companies in Detroit, figure is for worldwide aftermarket sales. For divisions of foreign-owned companies, figure is for North American aftermarket sales. It is not a complete listing but the most comprehensive available. Crain's estimates are based on industry analysis and benchmarks, news reports and a wide range of other sources. Unless otherwise noted, information was provided by the companies. Actual revenue figures may vary. NA = not available. B Figure is an estimate from the Automotive Aftermarket Suppliers Association Top 100 list. C Crain's estimate. D Sold North American and Asian brake business unit. E Figure from the Automotive Aftermarket Suppliers Association Top 100 list. F Restated from $942.7 million due to discontinued operations. G Aftermarket sales represent Mahle Clevite Inc., a division of Mahle Industries Inc. ■ An expanded version of this list can be purchased at crainsdetroit.com/lists. LIST RESEARCHED BY CAMILLE PIPPEN
OUR PANELISTS Join Crain’s Detroit Business Amy Cell senior vice president, and UM-Dearborn in exploring Michigan Economic ® Development Corporation DEARBORN the challenges the region faces as the economy sees signs of IN PARTNERSHIP WITH revitalization while the region’s Ryan Hoyle workforce needs have shifted. director of global recruiting, GalaxE.Solutions PRESENTS Encouraging small business growth is a cornerstone Lisa Katz of many of the economic executive director, Workforce Intelligence development initiatives, but a Network flexible and nimble workforce is key to entrepreneurial growth. Bruce Pietrykowski The workforce environment professor of economics, UM-Dearborn; director, is rapidly changing and the Center for Labor and panel of experts will analyze Community Studies and discuss the pitfalls and MODERATOR challenges that lay ahead. Jennette Smith managing editor, Crain’s Detroit Business
Breakfast and Discussion REGISTRATION Wednesday, Nov. 7, 2012 $35 each $30 for groups of 10+/ 7:30 a.m. - 10 a.m. UM-Dearborn faculty, Fairlane Center North Quad E staff and students 19000 Hubbard Dr., Dearborn $50 at the door
To register, please visit www.crainsdetroit.com/events or call 313.446.0300 DBpageAD.qxp 4/5/2012 5:04 PM Page 1 20121029-NEWS--0026-NAT-CCI-CD_-- 10/26/2012 10:07 AM Page 1
Page 26 CRAIN’S DETROIT BUSINESS October 29, 2012 M&A Experience In Your Corner. CALENDAR TUESDAY Carrie Atkinson, joint force provider, ORKFORCE EVELOPMENT U.S. Marine Corps. Royal Park Hotel, OCT. 30 W D Rochester. $150 or $1,500 table of 10 Mexico Sourcing and Logistics. 8:30 AND THE CHALLENGES OF HIRING WID/National Defense Industrial As- a.m.-12:30 p.m. Grupo Prodensa. Work- sociation members, $170 or $1,700 shop for midsize to large U.S. compa- Join Crain’s Detroit Business and table of 10 nonmembers. Contact: (248) nies that want more options for low- the University of Michigan-Dearborn 643-6590; website: www.wid-mi.org. cost, high-quality parts. DC3S Synergy in a forum that will explore the Center, Sterling Heights. Free. Con- challenges Detroit and the region Making America Stronger Luncheon. tact: Judy Kruger, (616) 450-6925; email: face as the economy shows signs 11:30 a.m.-1:30 p.m. Nov. 12. Detroit [email protected]; website: of revitalization, while the region’s Economic Club. With Chip McClure, www.prodensa.com.mx. workforce needs have shifted. chairman, president and CEO, Meri- The event is 7:30-11 a.m. Nov. 7 at tor Inc.; Joe Echevarria, CEO, Deloitte Detroit Economic Club Luncheon. UM-Dearborn. Panelists are Amy LLP; and Randy Richardville, Michi- 11:30 a.m.-1:30 p.m. Detroit Economic Cell, senior vice president, gan Senate majority leader. Detroit Club. With Arthur Laffer, former Michigan Economic Development Marriott Renaissance Center. $45 White House economic consultant and Corp.; Ryan Hoyle, director of members. $55 guests of members. $75 chief economist at the Office of Man- global recruiting, GalaxE.Solutions; nonmembers. Contact: (313) 963-8547; agement and Budget. Westin Book Lisa Katz, executive director, website: www.econclub.org. Cadillac, Detroit. $45 members, $55 Workforce Intelligence Network; guests of members, $75 nonmembers. and Bruce Pietrykowski, professor Small Business: Unlocked — Meet the Contact: (313) 963-8547; website: of economics at UM-Dearborn and Purchasers. 8 a.m.-noon Nov. 13. Net- www.econclub.org. director of the Center for Labor and work with purchasers and learn the Community Studies. basics of purchasing and procurement protocol. Detroit Regional Chamber. Fall Networking Dinner. 6-9 p.m. Tickets are $30 for attendees in Michigan chapter of the German Hotel St. Regis, Detroit. $30 chamber groups of 10 or more and UM- members, $70 nonmembers. Contact: American Chamber of Commerce of Dearborn students and faculty, the Midwest. With Rainer Jueckstock, Emily Doerr, (313) 596-0377; email: edo- $35 for CDB subscribers, $40 with CEO, Federal-Mogul Corp. The [email protected]; website: Townsend Hotel, Birmingham. $85 a CDB subscription offer and $60 www.detroitchamber.com. members, $100 nonmembers. Contact: for nonsubscribers. Ingrid Justice, (734) 424-9461; email: For more information, call (313) Meet the Buyers — A Procurement [email protected]; website: www.gacc 446-0300 or visit Matchmaking Event. 9-11 a.m. Nov. mi.org/en. www.crainsdetroit.com/events. 13. Meet with buyers from federal, state and local government. Procure- Pete Roth ment Technical Assistance Center of Technical Talent Development Pro- tration, receive a second delegate pass Schoolcraft College. Schoolcraft Col- [email protected] gram Information Session. 8:30-10:30 free), $995 all others. Contact: Charla lege VistaTech Center, Livonia. $25. a.m. Automation Alley. Learn how DeVoe, (330) 865-6135; email: Contact: Holly Johnston, (734) 462- your company can access funds to [email protected]; website: 4438; email: [email protected]; train employees in specific technical www.plasticsnews.com/plv2012. First Tier Ranking skills. Automation Alley headquar- website: www.schoolcraft.edu/bdc/ in Corporate Law ters, Troy. Registration required. Con- documents/meet-buyers.pdf. tact: (800) 427-5100; email: info@au- Automotive Inno- vation Awards tomationalley.com; website: www.au Today and Tomorrow Tour. 5:30-6:30 I Metro Detroit I Grand Rapids I Kalamazoo I Grand Haven I Lansing Competition & tomationalley.com. p.m. Nov. 13. Engineering Society of Gala. 4:30-11 p.m. Detroit. Learn about the mission of Nov. 7. Society of ESD and the ESD Institute. ESD head- Plastics Engi- WEDNESDAY quarters, Southfield. Free. Contact: neers’ Automo- OCT. 31 (248) 353-0735, ext. 120; email: lbir tive Division, [email protected]; website: www.esd.org. Michigan’s Job Creators: Tourism and Plastics News. Cobo. Noon-1:30 p.m. Engineering So- With Kim Korth, ciety of Detroit. With Larry Alexander, president and Search-Marketing Workshop. 7:30 president and CEO, Detroit Metro owner, IRN Inc. a.m.-2 p.m. Nov. 16. Eastern Michigan Convention & Visitors Bureau. Sky- Burton Manor, University College of Business. With Korth line Club, Southfield. $18 ESD mem- Livonia. $160 tick- Michael Lorenc, industry head, bers, $25 nonmembers. Contact: (248) et, $1,500 table. Register by Nov. 1. Google ticketing and live events 350-9898; website: www.esd.org. Contact: Dawn Stephens, (248) 244- group; Chad Wiebesick, director of so- 8993; email: dawn@speau cial media and interactive marketing, tomotive.com; website: www.plastic Michigan Economic Development THURSDAY snews.com/plv2012. Corp.; Michael Tidwell, dean of NOV. 1 the EMU College of Business; and oth- Diary of an Entrepreneur. 6-8 p.m. Selling Smart Workshop — Working ers. Eagle Crest Conference Center, Eastern Michigan University, Ypsi- TechTown Detroit. With Vince Well with Annoying People. 9-11 a.m. lanti. $40. Register by Nov. 9 at Thomas, founder and CEO, Billhigh- Nov. 7. Ann Arbor Spark. With Carrie ONE HU G ND www.thesearchmarketingworkshop. IN R way. Great Lakes Coffee Roasting Co., Hensel of Inner Circle Media and Joe T E A D com. R Y Detroit. $15. Contact: Diane Love-Su- Marr of Sandler Training Ann Arbor. B E
E A
L R vada, (313) 483-1302; email: Improve spoken and written commu-
E S C 100 [email protected]; website: nication by learning to adapt to oth- 29th Annual Detroit Aglow. 5:30 p.m. www.techtowndetroit.org. ers. Spark Central, Ann Arbor. Free. Nov. 19. Downtown Detroit Partner- Contact: (734) 372-4071; email: mari ship. DTE Energy. Fundraiser and Construction Industry Night Celebra- [email protected]; website: dinner for DDP. Westin Book Cadillac, tion. 6-10 p.m. National Association of www.annarborusa.org. Detroit. $175 individual, $1,750 table. Women in Construction Detroit Chap- Contact: Cristina Thibodeau, (313) 566- 8250; cristina.thibodeau@downtown ter 183. Awards ceremony celebrating Corporate Citizen- detroit.org; website: www.downtown the industry in Southeastern Michi- ship Symposium. detroit.org. gan. Westin Book Cadillac, Detroit. 7-9 p.m. Nov. 8. $85. Contact: Laurel Johnson, Wayne State Uni- (586) 405-3295; email: ljohnson@sme- versity Center for usa.com; Website: www.nawicde the Study of Citi- troit.org. zenship. With CALENDAR GUIDELINES Sandy Baruah, De- troit Regional If you want to ensure listing online COMING EVENTS Chamber. DeRoy and be considered for print Auditorium, WSU, publication in Crain’s Detroit Entrepreneur Roundtable: New Ways Detroit. Free. Business, please use the online to Profit in the Retail Industry. 1-4 p.m. Baruah Register: www. calendar listings section of Nov. 5. Michigan State University De- specialevents.wayne.edu/corporate- www.crainsdetroit.com. Here’s troit Center, city of Detroit Office of citizenship-symposium. how to submit your events: Neighborhood Commercial Revital- ization, Small Business Detroit Mi- From the Crain’s home page, click croloan Program, Chase Bank. Focus Startup SOUP. 5:30-8 p.m. Nov. 9. Tech- “Detroit Events” in the red bar will be on retail and nontraditional Town. Social entrepreneurs will pitch near the top of the page. Then, ways business owners can benefit their businesses for a chance to win click “Submit Your Entries” from from new retail in Detroit and its po- funds and business training at Tech- the drop-down menu that will tential. MSU Detroit Center, Detroit. Town. Gleaners Community Food appear and you’ll be taken to our 00 Free. Contact: Meechelle Parker, (313) Bank, Detroit. $5. Contact: Diane online submission form. Fill out $100 OFF the form as instructed, and then SAVE 255-1020. Website: www.miceed.org. Love-Suvada, (313) 483-1302; email: di- [email protected]; website: click the “Submit event” button at www.startupsoupnov.eventbrite.com. the bottom of the page. That’s all Plastics in Lightweight Vehicles 2012 there is to it. Conference. 8 a.m.-4 p.m. Nov. 6-7. Plastics News. Laurel Manor, Livonia. Fourth Annual Black Tie Gala. 6-11:30 More Calendar items can be found $695 automakers and plastics proces- p.m. Nov. 9. Women in Defense-Michi- on the Web at sors (automakers can buy one regis- gan, Crain’s, others. Honoring Maj. www.crainsdetroit.com. 20121029-NEWS--0027-NAT-CCI-CD_-- 10/26/2012 10:07 AM Page 1
October 29, 2012 CRAIN’S DETROIT BUSINESS Page 27
BUSINESS DIARY
CONTRACTS The approximately 30,000-square-foot Ameriprise Financial Services Inc., www.trw.com. NEW SERVICES store is scheduled to open spring 2013. from West Bloomfield to 32255 North- Signature Associates, Southfield, has ForeSee Results Inc., Ann Arbor, a Website: www.nordstrom.com. western Highway, Suite 150, Farming- WXYZ-TV, Southfield, has added been awarded the representation of a customer experience analytics compa- ton Hills. Telephone: (248) 865-2508. Bounce TV, a broadcast television net- 96,354-square-foot apartment building SVS Vision Inc., Mt. Clemens, opened a ny, has launched the ForeSee Mobile work designed for African-American Satisfaction Index: Retail Edition, in- located at 1440 N. Linden Road, Flint new store at 5761 12 Mile Road, War- audiences. Website: www.wxyz.com. ren. Telephone: (586) 619-3600. Web- NEW PRODUCTS cluding smartphones and tablets. Township, by Wolf Properties LLC, KpSweets Inc., Plymouth, has a new Ferndale. site: www.svsvision.com. Website: www.foreseeresults.com. Terumo Cardiovascular Systems Corp., website: www.kpsweets.com. 4D Pharmacy Management Inc., Troy, Ann Arbor, has announced the intro- Control-Tec LLC, Detroit, a vehicle has selected The Berline Group Inc., MOVES duction of the VirtuoSaph Plus Endo- data acquisition and analysis services Bloomfield Hills, as its agency of scopic Vessel Harvesting System, company, unveiled its new CT-84 diag- STARTUPS Penniman Gallery moved from 827 which provides an endoscopic ap- nostics tool, which will enable OEMs record. , an art enter- Penniman Ave., to 470 Forest Ave., proach to vessel harvesting and is to fulfill the specific testing and certi- Painting Escapes Corp. Altair Engineering Inc., Troy, develop- Suite 1, Plymouth, changing its name used for coronary artery and periph- fication requirements of the J1939-84 tainment company, at 827 Penniman er of the HyperWorks computer-aided to Opndohr. Telephone: (734) 455-5531. eral artery bypass graft procedures. Heavy Duty OBD standard. Website: Ave., Plymouth. Telephone: (734) 335- engineering software suite, an- Website pending: www.opndohr.com. Website: www.terumo-cvs.com. www.control-tec.com. 0011. Website: www.painting nounced the addition of Troy-based , Madison escapes.com. TES International’s software Elec- Gerdom Realty & Investment moved TRW Automotive Holdings Corp., Livo- Creative Edge Nutrition Inc. Heights, a nutritional supplement Hub Real Estate Solutions, at 829 Pen- troFlo for thermal analysis to the ap- from Wixom to 44725 Grand River nia, is developing a new electronic company, launched its Cenergy Nutri- niman Ave., Plymouth. Telephone: plications available through the Hy- Ave., Suite 102, Novi. Telephone: (248) horn system that is activated by tion line of products. Website: (734) 667-1481. Website: www.hubreal perWorks Partner Alliance. 242-6766. Website: www.gerdomreal touching an area on the steering ty.com. wheel airbag cover. Website: www.cenergynutrition.com. tysolutions.com. Lawrence Technological University, Southfield, has entered an agreement with the business consultants at Tech- nology Highway L3C, Fenton, to be LTU’s engineering entrepreneur in residence. Prime Office Innovations, Macomb Township, and Franklin CIO Services LLC, Bloomfield Township, have formed a strategic alliance to better serve clients seeking to define and de- velop a workflow process and improve document management and imaging. Noelco Inc., Oakland Township, was awarded a contract from Shanghai Volkswagen Automotive Co. Ltd., Chi- na, to provide machine control hard- ware and software upgrades for two stamping lines. Creative Breakthroughs Inc., Troy, an IT advisory services, network securi- ty, strategic virtualization, integra- tion and infrastructure management strategies company, was selected in North America for beta focus on Mountain View, Calif.-based Syman- tec Corp.’s new reference architecture for business critical virtualization strategy. Care Solutions Group LLC, Royal Oak, a health care management services or- ganization, selected Pontiac Trail Pharmacy Inc., Walled Lake, a mem- ber of the chain of independent drug stores for Sav-Mor Drug Stores, Novi, Employee satisfaction. to provide pharmacy services for pa- tients residing in skilled nursing, as- sisted living, independent living and Available in handy wallet size. private home settings. Plumbing Professors Inc., Canton Township, has been awarded a sewer line replacement contract by World Medical Relief Inc., Detroit, at the World Medical Relief building. Brogan & Partners Advertising Consul- tancy Inc., Birmingham, has been re- tained by The Caden Companies Inc., Thousands of small businesses across the state have chosen Blue Cross Blue Shield of Michigan or Los Angeles, makers of the Belly Ban- dit. Blue Care Network because they understand the importance of a plan that embraces total body Freedom One Financial Group, Clark- health for their employees at a price that won’t break their budget. We can help your business find ston, a 401(k) plan recordkeeping and the best health plan for your needs. administrative service provider, an- nounced that Freedom One Invest- BCN HMO HSASM ment Advisors Inc. will provide 401(k) plan advisory services for Custom An affordable, customizable option that combines a high-deductible health care plan with a tax- Data Solutions Inc., Sterling Heights. advantaged savings account. You pay lower premiums, and your employees control their health care. UHY LLP, Sterling Heights, announced É1SFWFOUJWFTFSWJDFTDPWFSFEBUQFSDFOU OPUBQQMJFEUPEFEVDUJCMF a new member, Yongyuth Accounting and Son Co. Ltd. and its affiliate firm, É*OUFHSBUFEQIBSNBDZQMBO Saman Audit and Corporate Services É%FOUBMBOEWJTJPOCFOFGJUDIPJDFT Co. Ltd., Thailand, to the global ac- É$PPSEJOBUFE POMJOFIFBMUITBWJOHTBDDPVOU XFCQPSUBMBOEEFCJUDBSE countancy network UHY. É-BSHFTU).0OFUXPSLPGQIZTJDJBOTBOEIPTQJUBMTJOUIFTUBUF EXPANSIONS Simply BlueSM Nordstrom Inc., Seattle, announced plans to open a new Nordstrom Rack "DPNQSFIFOTJWF110IFBMUIQMBOUIBUPGGFSTZPVSFNQMPZFFTUIFDPWFSBHFUIFZ¼WFBMXBZTXBOUFE at Arborland Center in Ann Arbor. BUBQSJDFZPVDBOBGGPSE.PSFUIBO QFPQMFJO.JDIJHBOIBWFBMSFBEZDIPTFO4JNQMZ#MVFSM É.VMUJQMFEFEVDUJCMFBOEDPQBZNFOUQMBOPQUJPOT DIARY GUIDELINES É1SFWFOUJWFDBSFGVMMZDPWFSFE Send news releases for Business É'MFYJCJMJUZUPNFFUZPVSCVTJOFTTOFFET Diary to Departments, Crain’s Detroit Business, 1155 Gratiot Find out what thousands of Michigan businesses already know. Ave., Detroit, MI 48207-2997 or Call 1-877-547-BLUE (2583) or visit bcbsm.com/grow. send email to cdbdepartments@ crain.com. Use any Business Diary item as a model for your release, and look for the appropriate category. Without complete information, your item will not run. Leading Michigan to a healthier future.SM Photos are welcome, but we cannot guarantee they will be used. Blue Cross Blue Shield of Michigan and Blue Care Network are nonprofit corporations and independent licensees of the Blue Cross and Blue Shield Association. 20121029-NEWS--0028-NAT-CCI-CD_-- 10/26/2012 11:29 AM Page 1
Page 28 CRAIN’S DETROIT BUSINESS October 29, 2012
Crain’s Job Front Visit www.crainsdetroit.com/jobfront to search for jobs, post a résumé or find talent. Job Front PEOPLE
BIOTECHNOLOGY Chris Sorenson to manager and chief NONPROFITS John Latessa to senior managing di- flight instructor, Eastern Michigan rector, CBRE Inc., Detroit, from man- IN THE SPOTLIGHT Dan Orlando to Vickie Thompson- University Eagle Flight Center, Ypsi- aging director. chief commercial Sandy to chief ser- Cranbrook Educational Community lanti, from interim manager and chief officer, Aastrom vice officer, has named Roderick Spearin COO flight instructor. RETAIL and treasurer. Biosciences Inc., Lutheran Social Ann Arbor, from Diane Blau to president, Michigan Services of Michi- Peter Light to gen- He succeeds School of Professional Psychology, gan, Detroit, from Dominic vice president, eral manager, business develop- Farmington Hills, from special con- vice president, Oakland Mall, DiMarco, who sultant and doctoral faculty. services for chil- assumed the ment, North/ Oakland Square dren and families. and Oakland office of South America, Takeda Pharma- FINANCE Kate MacEwen to Plaza, Urban Re- president. director of devel- tail Properties ceuticals, Deer- Rhett Rowe to senior regional market- Spearin, 57, opment, Detroit LLC, Troy, from field, Ill. ing director, Great Lakes Business most recently Thompson-Sandy Historical Society, senior regional Orlando Credit LLC, Troy, from executive vice was director from director of manager, Equity CONSTRUCTION president and commercial banking business develop- Partners, Detroit and controller manager, Key Bank, Denver, Colo. at Automotive Kevin Braye to CFO, O’Brien Construc- ment and market- and Jacksonville, Spearin Components tion Co., Troy, from treasurer, Barton Todd Gunderson to chief lending offi- ing, Community Light Fla. Holdings LLC, Dearborn. Malow Co., Southfield. cer, Michigan Schools & Government Alliance, Ypsilan- Credit Union, Clinton Township, from ti. SERVICES Spearin earned a bachelor’s EDUCATION president of company store opera- Tracy Thomas to degree in business administration tions, J.D. Byrider, Indianapolis, Ind. development di- Cathy Marchesi to from Michigan State University and Michelle Zdrodowski to chief commu- research director, Robert Leonard to executive vice pres- rector, CARE an MBA from Western Michigan nications officer, Detroit Public House of Oakland automotive team, Schools, from senior vice president, ident of the new equipment-leasing University. County Inc., Ponti- Morpace Inc., De- Franco Public Relations Group, De- business, Bank of Birmingham, from ac, from director troit, from owner troit. managing director, consultant, Right of development and operator, Management, Grad2Pro.com LLC, and MacEwen and campaign di- Marchesi Con- Hestia Acquisitions LLC, Southfield. rector, Haven, Bingham Farms. sulting, Detroit. FOOD Andy George to REAL ESTATE managing direc- Benjamin Meyer to chef de cuisine, Iri- Amy Wess to vice president of opera- tor, Resources descence, MotorCity Casino Hotel, De- Global Profession- tions, Home Renewal Systems LLC, Marchesi troit, from executive chef, Chen Chow Farmington Hills, from program facil- als, Southfield, Brasserie, Birmingham. itator and project accountant. from director of client service. HEALTH CARE Betsy Pilon to communications man- ager, Trinity Senior Living Communi- ties, Livonia, from director of life en- richment, American House Senior Real-world Living LLC, Bloomfield Township. Are you INFORMATION TECHNOLOGY Westley Zastrow to senior manager of network operations, Clear Rate Com- missing an munications Inc., Birmingham, from research. information systems and technology manager, Centurion Medical Products opportunity? Corp., Williamston. LAW Jon Beaupré to shareholder, Brinks Hofer Gilson & Lione, Ann Arbor, from shareholder, Chicago. MANUFACTURING Bill Widmann to vice president of sales and marketing, North America flat glass operations, Guardian Industries Corp., Auburn Hills, from vice presi- dent of sales, Rehrig Pacific Co., Ver- non, Calif. Tim Morris to vice president, EOS of Get ready to be inspired. Grand Valley’s foundation North America Inc., Novi, from gener- al manager, laser technology division, of academic and critical thinking skills provides Trumpf North America, Plymouth. undergraduate students the kinds of hands-on, MARKETING Your life insurance policies Anne Masterson professional research opportunities reserved to senior director may be able to work harder for you. of corporate and only for graduate students at other schools. It’s a foundation rela- A periodic analysis and review can: tions, College for Creative Studies, • Save premium dollars grand experience that challenges and motivates Detroit, from president, The • Improve, extend or guarantee our students and sets Grand Valley apart. Masterson Group, your coverage Grosse Pointe gvsu.edu/GRAND | (800) 748-0246 Woods. • Generate cash Masterson Andrea Bogos Tra- pani to partner, • Make sure your plan is on track Identity Marketing & Public Relations LLC, Bingham Farms, from senior vice president of media relations and marketing. Call for a complimentary analysis and review. Erica Banks to director of communica- tions, Bankable Marketing Strategies LLC, Detroit, from communication manager, Bassett & Bassett Inc., De- troit. BIRMINGHAM, MI 248.731.9500 WWW.SCHECHTERWEALTH.COM 20121029-NEWS--0029-NAT-CCI-CD_-- 10/26/2012 6:15 PM Page 1
October 29, 2012 CRAIN’S DETROIT BUSINESS Page 29 Romney White House could relax fuel economy standards
BY NICK BUNKLEY tunities to line the pockets of ma- AND DAVE GUILFORD jor campaign fundraisers.” CRAIN NEWS SERVICE Quick sale of shares could have ups, downs The $25 billion loan program, started during the George W. Bush A Mitt Romney White House Republican presidential candi- massive stake in insurance giant administration, has also loaned could reverse Obama administra- date Mitt Romney has vowed to American International Group Inc., $1.4 billion to Nissan for EV and tion support for higher fuel-econo- quickly sell the U.S. Treasury’s which is being sold in chunks. battery production in Smyrna, my standards and electric vehi- stake in General Motors if he’s Many analysts also believe that Tenn., and $5.9 billion to Ford Mo- cles. elected. GM will use some of its $33.6 bil- tor Co. to convert several plants to Romney has described Corpo- Analysts say that dumping the lion in cash and marketable secu- the production of fuel-efficient ve- rate Average Fuel Economy stan- government’s 500 million GM rities to buy some of the Trea- hicles and components. dards finalized by the Obama ad- shares — nearly one-third of the sury’s shares, regardless of who is As a practical matter, Romney ministration in August as company’s outstanding shares — president. That could blunt the would have little effect on the pro- “extreme” and argued they will would be a sudden blow to GM’s negative effect of any big govern- gram, which has stopped making limit consumer choices. stock price. But they also think Obama Romney ment sell-off, analysts say. loans while under election-year He told The Detroit News in June it’s unlikely to play out that way if If a future President Romney fire, disappointing several small that he would seek “a better way of Romney takes office in January. “But Romney is a business- makes good on his intentions to EV makers that had sought funds encouraging fuel economy” than “An immediate dumping into man,” Whiston said. “You’re quickly rid the government of its to survive. More than $16 billion of using federal fuel-economy re- the open market of the govern- much more likely to see a grad- entire GM stake, it could create a the original $25 billion pool re- quirements “as the sole or prima- ment’s entire stake” would de- ual, orderly sell-off.” nice buying opportunity, Whiston mains unallocated. ry vehicle.” press GM’s shares in the short Analysts figure that either a said. Romney also has criticized a fed- He told the newspaper: “The term,” said David Whiston, an an- Romney or President Barack Oba- “In the long run,” he said, “in- eral grant program for battery best approach is to try and build alyst for Chicago-based invest- ma administration would follow vestors who bought GM after a big makers. In debates, Romney vehicles that people want, rather ment research firm Morningstar the same playbook that the U.S. sale like that could do quite well.” specifically criticized Ener1 Inc., than having the government Inc. Treasury has used to unwind its — Mike Colias which received a $118 million fed- telling the companies what they eral grant and then filed for Chap- must make. ter 11 reorganization. “I would work with the manu- would rather that Romney, if elect- facturers to find ways to encour- ed, focus on building consumer age fuel economy on the part of the Once these rules are set into place, it can confidence and helping more peo- Tech-neutral approach consumer. But trying to have the “ ple be able to afford buying a vehi- Generally, Romney also would manufacturer push the product on be more challenging to change them. cle. shift from the Obama administra- the consumer — that the consumer ” The National Highway Traffic Safe- tion’s preference for EVs to a more doesn’t want — is not the right ap- Gloria Bergquist, ty Administration and EPA, which technology-neutral stance. Rom- proach.” Alliance of Automobile Manufacturers wrote the standards, say higher ney’s Web site says he would “en- But after years of fighting gov- upfront costs will be more than courage the use of a diverse range Manufacturers, a lobbying group could give his administration — in ernment attempts to increase fuel balanced out by fuel savings over of fuels including natural gas in that represents most major au- a second term — an opening to re- the life of the vehicle. But the Na- economy requirements, automak- transportation.” ers now support the rules. tomakers. lax the targets for the 2022-25 mod- tional Automobile Dealers Association Among his other positions that They have begun spending what “Once those rules are set into el years. has warned that the higher prices would affect auto-related business- ultimately will amount to many place, it can be more challenging The standards call for vehicles could keep millions of shoppers es: billions of dollars to develop the to change them,” she said. Now, to average 54.5 mpg by the 2025 from being able to afford or get fi- Ⅲ Romney has sharpened his necessary technologies. Changing Bergquist said, “We know what’s model year — equivalent to real- nancing for vehicles that fit their rhetoric against Chinese trade the rules again could create even ahead of us.” world performance of about 40 needs. policies, accusing China of being a more problems, said Gloria Even if Romney left the new mpg — with targets that increase 4 currency manipulator. His web- Bergquist, a spokeswoman for the rules largely intact, a midterm re- percent annually until then. Alliance of Automobile view to be completed by April 2018 Bergquist said automakers Less juice for EVs site says Romney would confront According to his website, Rom- “nations like China that cheat on ney would shift the federal govern- trade and steal American jobs.” ment’s role in encouraging EVs Ⅲ Romney has said he supports MARKET and other fuel-saving technology. right-to-work laws and would seek JOB FRONT Romney “will promote innova- to prohibit card-check certifica- tion by focusing the federal gov- tion of a union, a practice through PLACE ernment on the job it does best — which a union is voted in when a POSITIONS AVAILABLE research and development,” ac- majority of workers sign cards fa- INVESTMENT OPPORTUNITIES cording to the site. voring the union. Romney has expressed his dis- Card checks have been used in BUYERS BROKERS Small Bus./Real Estate taste for direct investment in star- some organizing drives in the auto We Can Help! Call Mel or Bill REFERRERS: EARN A tups with criticism of the federal industry instead of secret-ballot (248) 505-5840 / (248) 330-3823 Advanced Technology Vehicles elections. Romney’s website says Manufacturing loans to companies he would seek to amend the Na- REAL such as Tesla Motors and Fisker Au- tional Labor Relations Act of 1935 tomotive. Last fall he called for a to guarantee secret-ballot elections congressional probe of the loans, in every union certification vote. ESTATE CASH BONUS which he termed “historic oppor- From Automotive News INVESTMENT PROPERTY NATIONAL TENANT up to $4,000 when a hire is made Leased building for sale. Leased until 2021 2.4 million 8% return plus deprecation west side location. Two cities named ‘top performing’ [email protected] or call Bill 586-915-4441 Sterling Heights and Troy will counties and identified 46 as ei- receive new promotional video ther “four-star” or “five-star” profiles highlighting their busi- communities based on a six-fac- ness appeal, after being named tor, 32-item index of entrepre- among the state’s eight “top per- neurial activity from public forming communities” for foster- records. ing entrepreneurship and econom- Eight of these were then selected ic growth by the University of as top performers after local gov- |JOB FRONT Michigan-Dearborn Center for Inno- ernment officials answered ques- vation Research. tions about their communities’ crainsdetroit.com/jobfront The videos, produced with fund- business climate for review by a ing support from the DTE Energy panel of 11 entrepreneurs serving Foundation and the Michigan Eco- as judges. ADMINISTRATIVE ACCOUNTANT/OFFICE MGR nomic Development Corp. along with Joining Troy and Sterling Washington Twp Commercial real estate company UM-Dearborn’s College of Busi- Heights with those honors are INTERNAL LEASING AGENT / CANVASSING seeks full time, accountant to handle A/R, A/P. G/L, Washington Twp Commercial real estate company bank reconciliations, payroll, insurance, tenant prop- ness, will be presented Tuesday at newcomers Alpine Township, seeks full time, qualified and experienced Leasing erty management and general office management. a ceremony to honor top perform- Grand Blanc and Imlay City along Agent to handle Lease renewals, filling vacancies, lo- CAM reconciliation experience and knowledge of cating new tenants, Property management, assist in Quick Books is required. ers in the center’s sixth annual with returning favorites Grand identifying, evaluating and acquiring new properties Email Resume to [email protected] eCities study. Rapids, Meridian Township and and general office duties. Commercial Real estate This year’s study surveyed 114 Midland. experience and knowledge of MLS is required. Crain’s Classifieds Gets Results Email Resume to [email protected] communities from 40 Michigan — Chad Halcom 20121029-NEWS--0030-NAT-CCI-CD_-- 10/26/2012 6:09 PM Page 1
Page 30 CRAIN’S DETROIT BUSINESS October 29, 2012 Talent: State jobs website policy a concern to staffing firms ■ From Page 1 “Previously, we had full access ing this week to plan phase-three sumés on the state’s new talent site. Group, a Rochester Hills-based exec- to search,” said Kirk Hanna, direc- improvements to the site, Cell But that the policy exists at all utive search firm, doesn’t peruse tor of government affairs for Troy- For people who said. That work will develop addi- may be a concern. As the economy the state’s talent website much at based Kelly Services Inc. “ tional tools, such as a improves, staffing firms are more all, given that it concentrates on “With the new guidelines, staf- are using (the guide for those explor- likely to be the source of new posi- middle-level and higher manage- fing firms are able to post posi- ing a career path and tions because clients are more ment searches for the finance, auto- tions but not search the talent.” site) for the right enhanced functionality likely to want to try out new em- motive and information technology The updated site incorporates to guide staffing firms’ ployees. industries — and those people typi- 20-30 changes designed to enhance reasons ... we and recruiters’ use of “The staffing and recruiting in- cally aren’t registered to the Talent the experience of the job seeker or the site, among other dustry is pivotal to … helping peo- Bank, said President Mark Angott. employer. The previous version really are helping things. ple find new jobs in the state of “If a company can go find some- was launched in December. the general public Kelly Services Michigan,” Ryan-Kaiser said. one using the Michigan Talent Bank Amy Cell, senior vice president learned of the new poli- Other staffing and recruiting or any job board, they’re going to do of talent enhancement for the Mich- in securing cy through other firms said they were unaware of that,” he said. “And they’re not go- igan Economic Development Corp., staffing firms in Pontiac, Flint and the new policy. ing to pay a search firm our fees.” said the policy change was meant employment. Grand Rapids, Hanna said. And in “We use the (Mi) Talent Bank al- There are recruiters talked to alleviate the concerns from job ” the absence of an active state affili- most every day,” said Nancy about in the industry who don’t seekers and employers. Nancy Hanoosh, ate for the American Staffing Associ- Hanoosh, president of the Troy- have a real job opportunity and “It’s hard to find out who the Corporate Recruiters Inc. ation, which was also getting calls based boutique staffing firm Corpo- may use a person’s skills to gain bad actors are,” she said. But “if from staffing companies, Kelly rate Recruiters Inc. The company entry to a placement for a company we want job seekers to use this sys- policy. While the state is not contacted the MEDC. specializes in legal staffing and or shop those candidates around tem and come back to it, we want changing the policy for now, a “We were given a solution that works with most of the large law without their knowledge, Angott to make sure they have a good ex- workaround is available. will be in place for now,” Hanna firms in Detroit. said. perience.” The MEDC and its workforce said. “We’re constantly going on “It would be unethical to do Additionally, while recruiting system, MichiganWorks, are re- “We have encouraged our there to search for the most recent that,” he said. and staffing companies have a key viewing staffing companies and re- branches to register themselves people who’ve been displaced, Among the terms and conditions purpose in connecting job seekers cruiters seeking full access on a and to have a partnership with from paralegals to accounts receiv- for the site is one that alerts users with job opportunities, “sometimes case-by-case basis. their local MichiganWorks direc- able … or marketing coordina- that the MEDC is a public body they compete with employers,” Cell “Once we are sure they are con- tor. My understanding is this is tors,” she said. and keeps records on information said. necting with (local) Michigan- going to evolve.” Being able to do that helps the entered that could be accessed “Wherever possible, we want to Works and taking advantage of the Local Snelling Staffing Services company, which does business as through a Freedom of Information make a direct connection between services … and (their) pool of can- franchisee Maura Ryan-Kaiser CRI Staffing & Transcription, fill open Act request. employers and job seekers because didates and MichiganWorks vali- also called the MEDC, which in- positions for clients, Hanoosh Regardless, Cell said, “I do think that was the feedback we were get- dates their business practices, formed her of the reasons it put the said. we have an obligation to provide a ting.” then we’ll restore capability for policy in place. “For people who are using (the good experience for our job seek- Cell said that by the end of last the short term while we work on Ryan-Kaiser said her franchises site) for the right reasons ... we re- ers, regardless of FOI.” week she’d gotten calls from about the long-term partnership with the in Auburn Hills, Southfield, Troy, ally are helping the general public Sherri Welch: (313) 446-1694, 30 staffing and recruiting compa- staffing and recruiting industry.” Livonia and Taylor haven’t yet in securing employment,” she said. [email protected]. Twitter: nies that were concerned with the The MEDC plans to begin meet- been blocked from viewing re- On the other hand, Angott Search @sherriwelch
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October 29, 2012 CRAIN’S DETROIT BUSINESS Page 31 Suppliers: U.S. slump prepped industry for Europe’s slide ■ From Page 1 plier has been proactive to handle er respondents identified the Euro- automakers that the vendor sup- “Time is up in the EU thanks to the meltdown — using a “toolbox” pean crisis to be the biggest threat plies,” Hilgert said. “Those with their debt crisis, and companies of tactics he developed during the to industry recovery. There is way too more exposure to Volkswagen, BMW will either react appropriately or North American recession. The survey’s sentiment index fell “ and, to a lesser extent, Daimler, will suffer a lot more in the long run,” “There are things you wouldn’t to its lowest point since September much capacity in the do better than those who have Manganello said. have to do as a normal course of 2011 when the crisis began — more exposure with Fiat, Renault, Europe’s troubles have also business, but in challenging times with 41 percent of respon- European and Peugeot.” crossed the Atlantic by way of like these, you have to find creative dents viewing Europe’s woes Southfield-based Lear Corp., slowing investments, said Cliff ways to reduce costs,” Kozyra said. as a “significant threat” to Union, and which supplies seats to the Ford Roesler, managing director of Kozyra said TI has been on a hir- economic recovery and an- Genk plant and several other Eu- Birmingham financial advisory ing freeze in Europe and has cut other 52 percent viewing it the entire auto ropean suppliers, such as Fiat and firm Angle Advisors-Investment Bank- fixed costs through natural attri- as a “moderate threat.” industry needs Volkswagen, this month reported ing LLC. tion — not replacing employees Southfield-based Federal- a revenue drop in Europe of 9.7 “There is no question the Euro- who leave the company or retire. In Mogul Corp. supports Ford’s to ... right-size percent for its second quarter, but pean Union issue has slowed in- many European countries, compa- plant in Genk, Belgium, the drop was offset by 12 percent vestment in the U.S. by the Euro- nies must pay as much as two years’ which the automaker an- plants and growth in North America. pean-based suppliers, due to both salary to workers if they are laid off. nounced would close. Ford pro- The issue is about overcapacity confidence concerns as well as re- The supplier also cut down on jects losses of $3 billion in Europe their entire supply in Europe as sales plummet, much duced cash availability,” Roesler non-production materials, includ- over the next two years. as they did in the U.S. three years said in an email. “I don’t think the ing the ordering of shop coats, ear Earlier this month, Federal- chain. ago, said Tom Manganello, partner EU issue is slowing the investment plugs and safety glasses, to better Mogul announced layoffs of 300 ” at Southfield-based Warner Norcross in U.S. supply base by U.S. compa- align with a reduced workforce, he temporary workers in Europe, Tom Manganello, and Judd LLP and head of its auto- nies, but those who are European- said. with plans for more. Warner Norcross and Judd LLP motive practice. based, or U.S.-based with signifi- TI also reduced its travel budget “We expect to reduce about that “There is way too much capacity cant EU operations, have by 35 percent by enlisting travel re- many more temporary positions in cline of this profitable region.” in the European Union, and the en- definitely seen their bank ac- strictions for employees and man- Europe between now and the end of The supplier reported an $11 tire auto industry needs to swallow counts crimped.” agement, he said. Kozyra also cut the year,” said Jim Burke, director million loss in the second quarter, the bitter pill that (automakers) and BorgWarner Inc. CEO Tim Man- overtime pay across the company. of corporate communications. “We compared to a $34 million profit in suppliers did in North America and ganello, told Bloomberg earlier Kozyra said the company plans also anticipate taking additional the same quarter of 2011. right-size plants and their entire this month that companies are to avoid plant closures through its down time in some of our plants in European automakers, also sup- supply chain,” Manganello said in hesitating on investing globally austerity program, which it the coming months, depending on ported by U.S.-based suppliers, an email. “Those that do so fastest because of Europe, which is also learned during the North Ameri- our (automaker) customer plans.” have temporarily or permanently will win, not fail.” affecting lower-tiered suppliers. can recession. More than half of Federal- shuttered plants, including Fiat Milwaukee-based Johnson Con- “People are sitting on cash,” he “Everybody had to develop a Mogul’s powertrain sales come SpA, Renault SA, Peugeot SA and trols Inc., which operates its auto- said. “When larger companies like playbook to survive,” he said. from Europe, which will affect its General Motors Co.’s Opel division. motive seating business out of Ply- ours are sitting on cash, that trick- “We’re just pulling out the same bottom line, co-CEO Rainer Jueck- Richard Hilgert, securities ana- mouth, announced this week that les down to the small guys. They’re playbook and applying it to a dif- stock told investors last week. lyst covering automotive compa- it was restructuring its European not going to invest if we’re not go- ferent region.” “This is quite a difficult situation nies for Chicago-based Morningstar operations due to slowing sales. ing to invest.” However, even with the aid of for the powertrain segment and we Inc., said Southeast Michigan sup- The company declined to specify BorgWarner had $185.9 million past lessons, the eurozone remains see, as I said, this going forward pliers will fare differently depend- how many plants would be shut- in free cash flow at the end of the a worry within the supply base. into the first half of 2013,” he told in- ing on whom they supply in Eu- tered and how many jobs would be second quarter on June 30. In the Original Equipment Supplier vestors. “We see for our segment no rope as well. affected, but said employee-related Dustin Walsh: (313) 446-6042, Association’s Supplier Barometer loss of market share. … But overall, “There’s more pain to come, but costs will be between $180 million [email protected]. Twitter: survey for September, auto suppli- we are heavily impacted by the de- it depends on the combination of and 210 million, Reuters reported. @dustinpwalsh Blues: Insurance chief works on plan for foundation payments ■ From Page 3 which includes helping subsidize finalized after the House votes on er,” Snyder said. The Center for Insurance Research, low-income seniors’ Medigap pre- the bill and both parties know what Jennifer Kluge, CEO of the a Cambridge, Mass.-based con- miums and providing grants for We have a written further changes are necessary. Michigan Business and Professional sumer research firm, estimated preventive care programs to chil- “ One change in the legislation Association, said she is comfortable that Blue Cross’ market value could dren and seniors. contract that will could be made after Clinton hires with the Senate deal. She said Blue be at least $6.4 billion. Sobel said it But Clinton said the contract an investment banker to complete Cross needs flexibility in making could be as much as $10 billion. under negotiation will specify the hold (Blue Cross) to a fairness opinion on the deal with the payments because a serious fi- “This is a very poor deal for the annual payment amount to the Blue Cross. nancial downturn in the insurance people of Michigan,” said Don Haz- Michigan Health and Wellness Foun- their promises. “We are interviewing now and industry is possible under provi- aert, director of Michigan Con- dation, solidify that the total ” expect to get it done in the next sions of the Patient Protection and sumers for Healthcare. “There is no would be $1.5 billion and define R. Kevin Clinton, month,” Clinton said, adding the Affordable Care Act, which fully need to rush this legislation. A full when Blue Cross could skip a pay- Insurance Commissioner report will be completed before the kicks in Jan. 1, 2014. market evaluation should be con- ment or make a smaller one. the number) now,” Clinton said. House takes a final vote on the bills. “Blue Cross’ reserves always ducted to protect the people’s in- “We don’t want them to be mak- “We are confident they will pay. Clinton said the fairness opin- come from premiums, and some of terest in Blue Cross they have ing payments if they ever get into They are not even close to not ion is common in any asset sale of that comes from small businesses built up since 1939,” when the non- financial problems,” Clinton said. meeting that target now.” a company. that are paying the bills,” Kluge profit charity was founded. “We define ‘use best efforts.’ It is a Another provision in the con- “This is not a sale of Blue Cross,” said. “We don’t want to pay more But Clinton also said the legisla- solvency test. As long as they meet tract would allow Blue Cross to he said. “But it is common business (in premiums) if something goes tion and the contract will specify that, they have to pay. If they book the payments as costs during practice to protect the board of di- wrong” and Blue Cross needs to that while the policyholders of don’t, we can take them to court.” each year instead of recording the rectors. We want to know the deal raise rates to fund the foundation Blue Cross will technically be the Clinton said the solvency test is $1.5 billion as a liability immediate- that is structured is fair to people of and maintain its financial reserves. owners of the company, “they will tied to an unspecified number ly, which could affect its risk-based Michigan as an asset of the state.” But Laurie Sobel, senior attor- have no residual rights to the com- based on Blue Cross’ risk-based capital percentages and raise sol- Included in the review will be ney with Consumers Union, who tes- pany” in the event of a sale. capital percentage, which is a mea- vency questions, Clinton said. the $1.5 billion contribution to the tified at the Senate hearing, said If the legislation is approved and sure of solvency. Blue Cross officials deferred to foundation, continuing a $73 per the $1.5 billion commitment over the Blue Cross board signs off on Under Public Act 350, Blue Clinton any comments on the con- person Medigap subsidy to seniors 18 years, which averages about $83 the deal early in 2013, the owner- Cross is required to have a mini- tract negotiations. through November 2016 and the million a year, is an extremely low ship of the Blues will be trans- mum surplus of 200 percent and a Clinton also said the contract annual average of $100 million in amount and less than the interest ferred from the people of Michigan maximum surplus of 1,000 percent would act as a backup plan in case state and local taxes that Blue Blue Cross accrues annually on its to Blue Cross’ 4.4 million policy- of risk-based capital. The ratio future legislatures modify the Blue Cross will pay, he said. $6 billion investment portfolio. holders under the structure of a compares a company’s reserve Cross bills to allow Blue Cross to “We are looking at the transac- “This makes Blue Cross an even mutual insurance company. capital to its risk exposures. be sold or converted to a for-profit tion as a whole to see if it is fair,” more attractive takeover target” “(Policyholders) will not get any Over the past four years, Blue company. he said. by large for-profit insurance com- money down the road if there is a Cross’ risk-based capital has “Even if the law is changed and In an interview last week, Gov. panies like UnitedHealthcare and sale,” Clinton said. “If there is a grown from 650 percent in 2009 to the Legislature says (Blue Cross) Rick Snyder told Crain’s that the Wellpoint Inc. sometime in the fu- sale of Blue Cross, the people of 673 this year, according to Blue can de-mutualize” and sell to a for- fairness opinion could potentially ture, Sobel said. “Blue Cross could Michigan will receive those assets Cross financial documents submit- profit company, “we have a writ- increase the $1.5 billion contribu- be the highest-value plan in the into the foundation.” ted to the Office of Financial and In- ten contract that will hold them to tion to the foundation. U.S., because of its 70 percent mar- Jay Greene: (313) 446-0325, surance Regulation. their promises,” Clinton said. “We aren’t telling them (to set ket share,” large retained assets [email protected]. Twitter: “We can’t get into (identifying Clinton said the contract will be the number) one way or the oth- and nonprofit mutual status. @jaybgreene 20121029-NEWS--0032-NAT-CCI-CD_-- 10/26/2012 5:57 PM Page 1
Page 32 CRAIN’S DETROIT BUSINESS October 29, 2012 WORLD SERIES Ilitch rises to the upper crust through pizza dough, dreaming
BY BILL SHEA the idea guy. She’s 79, and has kept get a new stadium, so they wanted to lost an estimated $29.1 million for January. That’s because he got a CRAIN’S DETROIT BUSINESS the books and kept ideas from get- avoid overpaying for the Tigers.” the 2010 season, $29.5 million in 2009 mammoth nine-year, $214 million ting too zany (or expensive). The Ilitches eventually worked and $26.3 million in 2008. contract — a significant financial Mike and Marian Ilitch, and Mike Ilitch bought the Tigers for with the Ford family and others in The financial losses stemmed investment for any family or busi- their family, are listed at No. 151 on $82 million from another local pizza the mid-1990s to per- from Ilitch’s willing- ness. Forbes’ richest-Americans list. baron, Domino’s Pizza Inc. founder suade voters and elect- ness to spend on play- Like the Giants’ Charles John- Their estimated worth is $2.7 bil- Tom Monaghan, in August 1992. ed leaders to approve ers. Since 2006, he’s son, Mike and Marian Ilitch rely on lion, and includes ownership of the He’d previously tried to buy the funding that would shelled out more than family and longtime advisers to Detroit Tigers and Detroit Red Wings. team, but Monaghan reportedly partially finance what $600 million on player manage the business empire, which How did they get there? Ob- had an exclusive bid and paid $53 became Comerica Park salaries, which has led has seen pizza profits ebb and re- servers call it disciplined dream- million to longtime owner John and Ford Field. to three playoff appear- bound, and ownership of a success- ing. That applies to both sports Fetzer in 1983. Perna, who left the ances and two Ameri- ful Arena Football League team. franchises and the other holdings Monaghan and Fetzer’s owner- Ilitch organization in can League pennants. Running the Tigers day to day is under the Ilitch umbrella. ship years included what Ilitch is 1994 and later formed a The Ilitches have President, CEO and General Man- It all started with $10,000 and so willing to spend to get today: a sports marketing firm long had a reputation ager Dave Dombrowski, a closely some pizza dough. World Series title. that occasionally does for closely guarded pri- trusted Ilitch confidante. Son That’s the money Mike Ilitch used The Tigers won it all under Fet- work with the Tigers vacy, and it’s company Chris Ilitch, president of Ilitch to open a take-out pizza joint in a zer in 1968 and Monaghan in 1984. and Wings, noted that and team policy not to Holdings, is equally instrumental Garden City strip mall 53 years ago. The team was swept by the St. Louis Ilitch continued to JEFF JOHNSTON/CDB discuss finances. in running the family businesses. That evolved into the mammoth Cardinals in 2006 in its only World spend money at aged It’s known that the Sports industry veteran Tom Wil- Little Caesars discount pizza chain. Series appearance under Ilitch’s Tiger Stadium while Comerica family has other sources of in- son was hired away from rival They moved their business head- ownership before this year’s series Park was being conceived. come, such as concerts and events Palace Sports & Entertainment LLC a quarters to Detroit in 1987, with with the San Francisco Giants. “They still made significant in- via their Olympia Entertainment Inc. few years ago to run the Ilitch en- the $12 million renovation of the The deal to buy the Tigers was vestments even though it was on its business, a food distribution and tertainment holdings. dilapidated Fox Theatre on Wood- the culmination of a dream for Il- last legs,” said Perna, president and restaurant equipment service, and The family also owns the Wings, ward Avenue. itch, said Len Perna, who worked CEO of Haddonfield, N.J.-based three movie theaters. which it bought for $8 million in Their beginnings were modest: for Ilitch for seven years running Turnkey Sports & Entertainment Inc., They have stated that the Ilitch- 1982 and has built into a power- He was a former U.S. Marine and the combined marketing partner- which measures brand effective- owned companies generated more house that’s won four Stanley Cup minor-league ships and broadcast sales group for ness and values of pro sports teams. than $2.4 billion in revenue last championships. The family plans a baseball player, the family’s business holdings. “It was money they knew ulti- year, according to the family’s um- new downtown arena for the for a time in the Perna watched the deal with Mon- mately was going to meet the brella management services firm, Wings, expected to cost $300 mil- Tigers farm sys- aghan come together, and how Ilitch wrecking ball, but they did it for Ilitch Holdings Inc. lion to $400 million. tem, before his was careful not to overpay despite the fans, and I think that’s a testa- That includes $472 million in Ilitch “built his business career was end- his desire to own the franchise. ment of who he is,” he said. revenue for 2011 from MotorCity through hard work, he and Marian ed by a knee in- “I would call him very disciplined Buying the Tigers also was a Casino Hotel, which is owned by one store at a time, through work jury. She was a as a buyer. Even though it was a sound investment. Marian Ilitch. Because of base- ethic and innovation,” Perna said. Delta Air Lines dream, they were very realistic Forbes.com estimated that the ball’s anti-casino gambling rules, “They’re self-made in every way. reservations about what it would take to run that team is worth $478 million. The fi- she hasn’t been listed as an owner “There are not any other Mike desk clerk who team,” Perna said of Ilitch. “They nancial news site calculated that De- of the Tigers for several years. Ilitches. He’s the only one, and had taken a sin- Ilitch understood how challenging run- troit in 2011 reversed three years of However, Mike and Marian Il- there will never be another.” gle accounting class, according to ning Tiger Stadium would be. They operating-income losses, instead itch did say there was a serious Bill Shea: (313) 446-1626; the family’s official biography. knew they ultimately would have to taking in $8.2 million last season on family discussion of the free-agent [email protected]. Twitter: Today, he’s 83 and is known as work with city, county and state to revenue of $217 million. The Tigers signing of slugger Prince Fielder in @bill_shea19 Low-key ownership style suits San Francisco Giants’ Johnson BY BILL SHEA owns 36.5 million of them. consortium together to buy the team years ago to win their first World million in payroll until 2011. That CRAIN’S DETROIT BUSINESS The firm went public in the for $100 million in December 1992. Series since 1954 — when the team spending threshold has been 1970s and reported net income of The group’s intent was to stave off was still in New York. passed by the Detroit Tigers for the Charles Johnson, 79, is the San nearly $2 billion last year on rev- then-owner Robert Lurie’s plan to Johnson relies on team CEO past five seasons. Francisco Giants’ principal owner, enue of $7.1 billion. Its filings with relocate the team to Tampa. Lurie Larry Baer, who is a minority The Giants struggled financially, reportedly with a 25 percent stake the U.S. Securities and Exchange had bought the team for $8 million owner, and Brian Sabean, senior reportedly losing $100 million over in the team. That’s believed to be Commission indicate it had $670 bil- in 1976 and had been losing money vice president and general manag- seven seasons in the 1990s, in part the largest among the team’s 32- lion under management at the end on it because of erratic play and be- er, to oversee day-to-day opera- because the team was mediocre and member ownership group, San of 2011 — quite the leap from the cause of the unpopularity of Candle- tions of the team. because fans disliked windy, de- Francisco Baseball Associated LP. $2.5 million in mutual funds under stick Park. “I can’t remember one time he crepit Candlestick Park, which the But his management style is re- Johnson’s management in 1957. How much Johnson initially in- has ever asked me, ‘Why did we Giants shared with football’s San portedly mostly hands-off, empow- Johnson lives in a historic 98- vested has never been disclosed. make this trade?’ or ‘Why aren’t the Francisco 49ers. The team privately ering the top team executives to room mansion, according to Forbes. Magowan stepped down as prin- seats filled?’ ” Baer told The Chroni- financed $357 million AT&T Park, make decisions on payroll invest- The family interest in the Giants cipal managing partner in 2008. cle. which opened in 2000. ments and other day-to-day matters. dates back to the mid-20th century. His replacement was Bill Neukom, That doesn’t mean Johnson’s in- Forbes values the team at $643 Forbes estimates Johnson’s Johnson’s father had box seats at perhaps best noted as principal le- fluence isn’t felt. million and estimates it had $8.8 worth at $4.7 billion, tied for 72nd- the Polo Grounds when the Giants gal counsel for Microsoft Inc. and Being able to keep an expensive million in operating income on rev- richest American. still played in New York City, ac- Bill Gates for 25 years. and talented roster together to make enue of $230 million last year. The His wealth originates from his cording to a September profile in the Neukom retired, reportedly un- the World Series two out of the last team has been profitable since mov- chairmanship of San Mateo, Calif.- San Francisco Chronicle. der pressure or orders from the three seasons is incredibly difficult ing into the new stadium, and it’s based Franklin Resources Inc., a A New Jersey na- team’s operating com- because of the financial pressures enjoyed a two-year sellout streak. holding company better known as tive who graduated mittee, in September involved, said Michael Rapkoch, The Giants ownership includes Franklin Templeton Investments. The from Yale University, 2011 amid media re- president of Addison, Texas-based several other major names. investment firm was founded by Johnson became a ports that there were Sports Value Consulting LLC. Among the other investors in the Johnson’s father in 1947, and John- minority owner as disputes over commu- “That takes commitment from team are iconic venture capitalist son took it over at age 24 in 1957 part of an investment nication about spend- ownership and the general manag- Arthur Rock, who financed the in- upon his father’s retirement and group in 1992 and ing and revenue ap- er,” he said. “The Giants, for them fancy of Silicon Valley’s giants, and after a two-year stint in the U.S. slowly increased his portionment. He to come back again, in a short former Yahoo Inc. President Jeff Army. stake until becoming divested himself of his amount of time, that’s so difficult. Mallett, who also co-owns British In 1999, Johnson stepped down as majority owner last stake in the team. A lot of owners will pay for that pro soccer team Derby County along Franklin Templeton’s CEO, a role year, according to Johnson acquired one-time shot, and then the team is with Rochester sports entrepre- now filled by his son. Many of the several reports. his majority owner- different the next year.” neur Andy Appleby. company’s top key management po- Johnson, who did- ship by buying some San Francisco’s Opening Day Sports insiders admire the sitions are family members, and the n’t move to California of Neukom’s shares, payroll this season, including pro- team’s ability to keep egos in check. firm was grown largely by Johnson until the 1970s as his JEFF JOHNSTON/CDB and those of other rated signing bonuses, was $131.3 “Sometimes when you have and his half-brother, Rupert. company was growing stakeholders who million. The team added a few mil- multiple owners and have to agree Johnson is the firm’s largest in- via acquisitions, initially invested have died in recent years. lion more in salary with midsea- on something, it can be difficult,” dividual shareholder, owning in the Giants when former Safeway He reportedly is a very low-pro- son trades for key starters such as Rapkoch said. nearly 17 percent of Franklin Tem- Inc. Chairman and CEO Peter file, hands-off owner. He wasn’t in second baseman Marco Scutero Bill Shea: (313) 446-1626; pleton stock. Its shares opened Fri- Magowan (grandson of Merrill Lynch the stands in Texas when the Gi- and right-fielder Hunter Pence. [email protected]. Twitter: day morning at $129.16, and he co-founder Charles Merrill) put a ants beat the Texas Rangers two The Giants didn’t exceed $100 @bill_shea19 20121029-NEWS--0033-NAT-CCI-CD_-- 10/26/2012 6:12 PM Page 1
October 29, 2012 CRAIN’S DETROIT BUSINESS Page 33 Donors: $10 million will Penske Corp. at top of list www.crainsdetroit.com ■ EDITOR-IN-CHIEF Keith E. Crain From Page 3 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] In Southeast Michigan, after tion Program) include Irene Cor- ness and the necessity of building create housing ASSOCIATE PUBLISHER Marla Wise, (313) 446- Penske Corp., the next-largest reia of Grosse Pointe Farms and V- and supporting small business. 6032 or [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- business contributor to Restore Net Solutions, $3,500; physician Roger was a small-business (own- 0460 or [email protected] Our Future was William Keough, Dilip Samarapungavan, M.D., of er) at one point in time, and he MANAGING EDITOR Jennette Smith, (313) 446- for homeless 1622 or [email protected] chairman of the Atmosphere Group Bloomfield Hills, $1,400; physician built his business in an environ- MANAGER, DIGITAL CONTENT STRATEGY Nancy Inc. in Wixom, who gave $300,000. and scientist David Ferguson, ment that was much more free of Hanus, (313) 446-1621 or [email protected] DEPUTY MANAGING EDITOR Daniel Duggan, (313) Calls seeking comment from M.D., University of Michigan, regulation. I think we’re support- BY SHERRI WELCH 446-0414 or [email protected] Keough were not returned. $1,000; and Rodney Smith, M.D., ive of his (Romney’s) views on the CRAIN’S DETROIT BUSINESS SENIOR EDITOR Bob Allen, (313) 446-0344 or [email protected] According to the federal data, chief medical officer of EPMG in necessity of freeing small business Cass Community Social Ser- WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- other major local contributors to Ann Arbor, $1,000, according to from burdening regulation.” 8158 or [email protected] vices of Detroit and MHT Housing SENIOR EDITOR Gary Piatek, (313) 446-0357 or Restore Our Future include Trott & federal data. Bill Ballenger, editor of the In- Inc. of Bingham Farms have be- [email protected] Trott PC in Farmington Hills, Super PACs are political action side Michigan Politics political SENIOR DESIGNER Jeff Johnston, (313) 446-1608 or [email protected] $200,000; David Fischer, president committees that can raise and newsletter, said it’s not surprising gun a $10 million project to re- hab a building on Cass’ Detroit DATA EDITOR Brianna Reilly, (313) 446-0418, and CEO of the Suburban Collection spend unlimited amounts of mon- that Romney, with his business [email protected] in Troy, $150,000; and PVS Chemi- ey to advocate in support of or background, would elicit the campus into affordable housing WEB PRODUCER Norman Witte III, (313) 446- for the homeless. 6059, [email protected] cals Inc. in Detroit, $100,000. against political candidates. The amount and size of local contribu- EDITORIAL SUPPORT Robertta Reiff, (313) 446- The organizations plan to 0419; YahNica Crawford, (313) 446-0329 Also: Anthony Soave, president super PACs can’t donate directly tions in the Restore Our Future su- NEWSROOM (313) 446-0329, FAX (313) 446- and CEO of Soave Enterprises in De- to the candidates. per PAC compared with Obama su- convert the 34,500-square-foot 1687 TIP LINE (313) 446-6766 building at Elmhurst and troit, $50,000; Donald Foss, chair- Asked whether he sees Penske per PAC contributions. REPORTERS man or executive chairman of Corp.’s contribution as making a But he also pointed out that Woodrow Wilson streets into 41 Daniel Duggan, deputy managing editor: (313) one-bedroom units as part of 446-0414 or [email protected] Credit Acceptance Corp. in South- difference, Kurnick said: “We just Romney needed to win a primary Jay Greene, senior reporter: Covers health care, field, $35,000; Liggett Co. Chairman see it as a way of supporting the election, increasing what he would the Arthur Antisdel Apart- insurance, energy utilities and the environment. ments development. (313) 446-0325 or [email protected] Robert Liggett, $50,000; Waltraud message that we think is the right get in the election cycle. Several Chad Halcom: Covers litigation, higher education, Prechter, president and founder, message. I don’t know whether it large business contributions to Re- The project is expected to be non-automotive manufacturing, defense completed within a year, said contracting and Oakland and Macomb counties. Heinz C. Prechter Bipolar Research is the right level or the wrong lev- store Our Future came in 2011 and (313) 446-6796 or [email protected] Fund at the University of Michigan, el; it’s what we were comfortable early 2012 before the first Republi- Marcy Hayes, president and Tom Henderson: Covers banking, finance, owner of C&B Scene, speaking technology and biotechnology. (313) 446-0337 or $25,000; Robert Thompson, philan- with. can presidential primary in Febru- [email protected] thropist and paving magnate, “We saw it as an effective way ary. on behalf of the nonprofit. Bill Shea, enterprise editor: Covers media, Fusco, Shaffer & Pappas Inc. Ar- advertising and marketing, the business of sports, $25,000; and real estate developer for us to support him (Romney) in And, Ballenger said, there’s the and transportation. (313) 446-1626 or Mickey Shapiro, Farmington getting his message out, and en- effects of a 2010 U.S. Supreme Court chitects and Planners in Farm- [email protected] ington Hills is architect on the Nathan Skid, multimedia editor. Also covers the Hills, $20,000. abling some compare and contrast decision “that basically said corpo- food industry and entertainment. (313) 446-1654, Smaller contributors to Restore to what President Obama’s mes- rations and labor unions can give project, and The Douglas Co. of [email protected] Dustin Walsh: Covers the business of law, auto Our Future include the former sage is.” unlimited amounts” to support or Holland, Ohio, is general con- suppliers and steel. (313) 446-6042 or Young & Susser PC law firm, giving He said the level of contribution, oppose candidates. He said the de- tractor on the permanent hous- [email protected] Sherri Welch: Covers nonprofits, services, retail $7,500; and Rodger Young, partner and the contribution itself, was cision in Citizens United vs. Feder- ing project. and hospitality. (313) 446-1694 or at Southfield-based Young & Associ- discussed among Penske leaders, al Election Commission, which The development is intended [email protected] ates PC, $5,000. including Chairman Roger eased some spending restrictions, to help provide permanent ADVERTISING For Priorities USA Action, local Penske. “frees up these corporations to homes for the estimated 19,000 SALES INQUIRIES: (313) 446-6052; FAX (313) contributors beyond the UAW V- As for Romney, Kurnick said: give money ... that they were never homeless people in the city, 393-0997 CAP (Voluntary Community Ac- “We like his focus on small busi- able to.” Cass said in a release. SALES MANAGER: Tammy Rokowski SENIOR ACCOUNT EXECUTIVE: Matthew J. Langan ADVERTISING SALES Christine Galasso, Lori Tournay Liggett, Dale Smolinski CLASSIFIED SALES (313)-446-0351 EVENTS DIRECTOR Nicole LaPointe Market: Hunger rises for organic food, health aids DIRECTOR, INTEGRATED MARKETING Eric Cedo SALES PROMOTION MANAGER Karin Pitrone ■ From Page 3 EVENTS COORDINATOR Kacey Anderson SENIOR PRODUCER FOR DIGITAL/ONLINE Meer Dental Supply Co., a $200 mil- smoothies and wheat grass shots. chains selling both organic foods couple of years … talking about PRODUCTS Pierrette Dagg lion company founded by his The company earlier this year as well as vitamins, supplements, nutrition and supplements,” MARKETING ARTIST Sylvia Kolaski grandfather and the Meer family. opened the full market location in and natural health and beauty aids Adams said, referring to host SALES SUPPORT Suzanne Janik, YahNica Crawford PRODUCTION MANAGER Wendy Kobylarz That company was sold in 1997 Bloomfield Hills, and it’s convert- in the state, Handelsman said. Mehmet Oz, M.D. to New York-based Henry Schein ing its Taylor store to a larger Many of the locally based stores Doctors’ recommendations for CUSTOMER SERVICE (Nasdaq: HSIC), and Handelsman space in Southgate in November, selling vitamins, supplements, patients to switch to organic foods PRODUCTION SUPERVISOR Larry Williams MAIN NUMBER: Call (877) 824-9374 or write hatched a plan to get into a Handelsman said. It has plans to health and beauty aids and organ- because of the types of therapy [email protected] dot.com vitamin business. He convert stores in Southfield, Ann ic groceries are standalone stores, they are on and books like Skinny SUBSCRIPTIONS $59 one year, $98 two years. Out of state, $79 one year, $138 for two years. bought his first store in Walled Arbor and Grosse Pointe to larger some in business for decades. Bitch or actress Suzanne Somers’ Outside U.S.A., add $48 per year to out-of-state rate for surface mail. Call (313) 446-0450 or Lake in 1998 to get access to all the sites. Each of the remaining five Nutri-Foods Inc. in Royal Oak saw self-help books are also fueling in- (877) 824-9374. lines of products, and is selling stores will include a café. a bit of a downturn in recent years terest in organic vitamins, supple- SINGLE COPIES: (877) 824-9374 products through www.thebetter- “Once those are converted, the because of the economy, said store ments and foods, she said. REPRINTS: (800) 290-5460, ext. 125; (717) 505-9701, ext. 125; or lindsay.wilson healthstore.com. next page would be to open new manager Judy Ferguson, who did “There’s always been celebrity @theygsgroup.com “But one store led to another stores in markets we aren’t serv- not give specific revenue figures. awareness, but it’s just becoming TO FIND A DATE A STORY WAS PUBLISHED: and another and another,” he said. ing currently in metro Detroit and “But we are blessed because more evident that people want to (313) 446-0406 or e-mail [email protected] Better Health had six stores by perhaps on the west side of the we’ve been here since 1937; we … have more control over their CRAIN’S DETROIT BUSINESS IS PUBLISHED BY CRAIN COMMUNICATIONS INC. the fall of 2003 before it acquired state and in Ohio,” Handelsman have a really loyal clientele … health,” Adams said. CHAIRMAN Keith E. Crain another 10 with its purchase of said. In addition to expanding its (and) have been able to keep our The natural and organic person- PRESIDENT Rance Crain Wixom-based Vitamin Outlet for $4.5 offerings, Handelsman is spending heads above water,” she said. al care products and dietary supple- SECRETARY Merrilee Crain TREASURER Mary Kay Crain million from founder David Far- about $1 million each year on Some of the smaller, local com- ments industry, in general, is “real- Executive Vice President/Operations ber. Since then, it’s been consoli- print, radio and TV advertising panies in the industry didn’t make ly healthy,” said Cara Welch, William A. Morrow Group Vice President/Technology, dating the stores and moving them and has a “pretty aggressive” re- it during the recession, said Clara senior vice president of scientific Manufacturing, Circulation Robert C. Adams to larger locations with room to wards program with discounts and Adams, owner of Zerbo’s Health and regulatory affairs, Natural Prod- Vice President/Production & Manufacturing add organic groceries. frequent buyer awards to keep cus- Foods Inc. in Livonia. ucts Association in Washington, D.C. Dave Kamis Today, the company — which tomers coming back, he said. And loss of sales to Internet re- The U.S. nutrition industry — Chief Information Officer Paul Dalpiaz claims to be the largest indepen- Specifically, advertisements tailers has caused some issues, which includes dietary supple- Chief Human Resources Officer dent, family-owned natural food broadcast during the “Dr. Oz” too, she said. ments, natural and organic food, Margee Kaczmarek Director of Audience Development Operations store chain in the state — operates show have “driven a lot of people Zerbo’s — founded in 1958 by the functional food, and natural and or- Michelle Roth 11 stores in metro Detroit and two into our stores,” Handelsman said current owner’s father, Harry Zer- ganic personal care — saw revenue G.D. Crain Jr. Founder (1885-1973) in Lansing. Better Health currently employs bo — saw a little bit of a drop-off in rise 8.5 percent last year to $126 bil- Mrs. G.D. Crain Jr. Chairman (1911-1996) EDITORIAL & BUSINESS OFFICES: Eight are full market stores with about 160, but that count is grow- revenue. But Adams said regular, lion in sales, according to the Nutri- 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 produce and other groceries in ad- ing as revenue rises, he said. loyal shoppers, helped a great deal. tion Business Journal, with direct- Cable address: TWX 248-221-5122 AUTNEW DET dition to vitamins, supplements The company expects to add Although dietary supplement to-consumer channels contributing CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 and other natural health and beau- about 20 percent more jobs, or 32 manufacturers don’t need to ob- 14 percent of the growth. is published weekly, except for a special issue the third week of August, and no issue the third week ty aids. Handelsman is converting new positions, in its expanded tain U.S. Food and Drug Administra- The industry “may not be grow- of December by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. the remainder to full market stores stores this year, Handelsman said. tion approval before producing or ing as much as back in the heyday Periodicals postage paid at Detroit, MI and at a rate of about two each year, New Jersey-based Vitamin selling those products — a point (of) the early 2000s, when it may additional mailing offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, with an investment of $400,000- Shoppe Inc. (NYSE: VSI), which that leads some critics to argue have been double-digit (growth), Circulation Department, P.O. Box 07925, Detroit, $500,000 to equip and stock each. has more than 500 locations across manufacturers make baseless but … it’s rare in this economy to MI 48207-9732. GST # 136760444. Printed in U.S.A. Better Health’s Novi, East Lans- the country, operates 12 stores in claims — retailers say there’s a have growth year after year in the Entire contents copyright 2012 by Crain ing and Bloomfield Hills stores Michigan — 10 in metro Detroit growing market for them. same industry,” Welch said. Communications Inc. All rights reserved. Reproduction or use of editorial content in any also include in-store cafés where and two on the state’s west side “I think really since ‘Dr. Oz’ has Sherri Welch: (313) 446-1694, manner without permission is strictly prohibited. shoppers grab organic sandwich- selling vitamins and supplements. been on, we haven’t had any prob- [email protected]. Twitter: es, soups, salads, raw juices, But there are few Michigan-based lems. He’s been on for at least a @sherriwelch 20121029-NEWS--0034-NAT-CCI-CD_-- 10/26/2012 5:58 PM Page 1
Page 34 CRAIN’S DETROIT BUSINESS October 29, 2012 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF OCT. 20-26
troit to be one of the most Also, the Michigan Depart- dangerous activities in Allen Park gets ment of Agriculture & Rural 40 UNDER 40 America. Development sued Ammex, a Gilbert can’t The effort to recruit Col- Moroun-owned duty-free bert spawned a Facebook EM; resumé company at the Ambas- page with 4,100 “likes,” sador Bridge, saying it prompting people to take failed to comply with gaso- get enough of photos all over the city includes Ecorse line sales regulations. while holding a photo of Ⅲ Canada has promised Colbert against their faces. tate Treasury officials to cover all of Michigan’s In his blog, “Doc in the appointed Joyce Park- costs that otherwise would D,” Popovich praised Col- S er as Allen Park’s not be picked up by the pri- downtown bert and his brand of humor emergency financial man- AARON ECKELS vate sector or U.S. govern- but touted the city’s high ager, AP reported. Parker ment for a proposed $2.1 From left, Jamie Walters of pparently Dan Gilbert made himself the sec- points. He noted that Henry is president of Ann Arbor- Velocity Cow, Denise billion Detroit River bridge Gilbert’s 2 million ond-largest landlord behind Ford Hospital won the pres- based The Municipal Group, Beers-Kiepper of Fifth Third crossing, Gov. Rick Snyder A square feet of De- General Motors Co. tigious Malcolm Baldrige which provides organiza- Bank and Patricia Van Pelt told Crain’s staff members troit real estate still isn’t Award for quality, and also tional assessments, recruit- of Fifth Third Bank enough to house the em- cited the Detroit Institute of ment and training, commu- in an interview last week. celebrate at Crain’s 40 Microsoft using local data Ⅲ Under 40 VIP reception ployees affiliated with his Arts, Detroit Medical Center, nity and economic Detroit-based Cass Tuesday at Planterra in many com- Orchestra Hall and Wayne Community Social Services in its new Windows 8 development services to West Bloomfield Township. panies. State University. municipalities. She was ap- and Bingham Farms-based The newly unveiled Win- The reception preceded the Gilbert “I am a particular fan of pointed EM for Ecorse in MHT Housing Inc. have be- dows 8 is featuring finan- awards event Wednesday has a short- your political commentary. 2009 and for Highland Park gun a $10 million project to at Shriners Silver Garden cial content from South- term lease of You appear to be much Public Schools in May. rehab a building on Cass’ Events Center. Walters and 75,000 square field-based news website more insightful than other Detroit campus into hous- Van Pelt are members of feet in One Benzinga.com, started by a television personalities, ing for the homeless. the 40 Under 40 class of Detroit Cen- Crain’s 40 Under 40 winner, such as Bill O’Reilly and ON THE MOVE Ⅲ The U.S. Department of 2012. More photos at ter — the for- 34-year old Jason Raznick. Rachel Maddow, although Veterans Affairs’ Ann Arbor crainsdetroit.com/40s. Benzinga, which has a Ⅲ Bank of America Corp. mer head- both of them seem to inter- named Matthew Elliott pres- Healthcare System reached quarters for multiyear contract with Mi- ject greater humor into an agreement with the Uni- Ⅲ Fourteen Southeast crosoft to provide the Win- ident of its Michigan opera- Comerica their shows,” said tions, replacing Brett versity of Michigan Health Michigan communities are dows 8 platform with finan- Popovich, a pulmonary dis- Bank — in order to house Bernard. Elliott will keep System to move 150 VA re- among 32 statewide that 530 employees of Quicken cial information for ease specialist. searchers to the North Cam- will receive a total of $10.5 investors, will be featured his title as market execu- Loans Inc. and other affiliat- tive for the global commer- pus Research Complex. million in state Department ed companies using the along with larger media Ⅲ Revenue for Detroit’s of Treasury grants to help companies including For sale: Old Freep building cial banking for middle building. market banking in Michi- three casinos rose 0.2 per- municipal governments off- Reuters and Bloomberg in the For sale: 87-year-old It is a temporary move to gan, Indiana and Ohio for cent in September com- set the costs of consolidat- Windows 8 “Bing Finance” building, 288,000 square feet, accommodate the down- the Charlotte, N.C.-based pared with the same month ing or sharing services. section. heavily used, once home to a town employees while space bank. of 2011 but down 2.4 percent Ⅲ Although it said the in other buildings is being “They’re billion-dollar daily newspaper. from August, said the Michi- idea of people openly carry- prepared, said Jim Ketai, companies,” Raznick said. Emre Uralli, a Florida in- gan Gaming Control Board. ing weapons into libraries managing partner of “We’re in a good mix.” vestor who purchased the COMPANY NEWS Ⅲ The University of Michi- is “alarming,” libraries Bedrock Management LLC, Benzinga also has con- former Detroit Free Press Ⅲ Behavioral Centers of gan is reporting enrollment can’t ban weapons, the the real estate firm founded tracts to provide content to headquarters at 321 America, a Nashville-based at the Ann Arbor campus is Michigan Court of Appeals by Gilbert and Ketai. Ameritrade.com, Lafayette Blvd. with the psychiatric health care 43,426, up 1.7 percent from ruled Friday. In a 2-1 deci- Ketai declined to say Tradestation.com and idea of redeveloping it into chain, announced plans to fall 2011 and its largest pop- sion, the court said it is up where the employees will go Forbes.com. It began work- a mixed-use project, plans spend $20 million to con- ulation in school history. to the state, not local gov- permanently, though the ing with Microsoft about a to auction the building to vert the former Saratoga Ⅲ The Detroit Red Wings ernment units, to regulate group is rumored to be in- year ago, providing content another investor. He’s been Hospital, 1500 Gratiot Ave., confirmed that the Hockey- matters related to firearms. terested in purchasing the to MSN.com. seeking financing for the into StoneCrest Center, the town Winter Festival at Com- Ⅲ Judge Wade H. McCree One Woodward building $50 million project since only acute care mental erica Park will be canceled of Wayne County Circuit across the street. buying it three years ago Doctor aims at jabs health hospital in Detroit. if the National Hockey Court was censured in a Since 2010, Gilbert has but hasn’t been able to find Ⅲ Saginaw-based Knight League doesn’t play its Win- “sexting” scandal by the been on a buying spree in In a lighthearted letter to the right terms. Facilities Management Inc. ter Classic at Ann Arbor’s Michigan Supreme Court. Detroit, taking advantage of comedian Stephen Colbert, The building has a will shed 277 building Michigan Stadium on Jan. 1. Ⅲ Americans bought what he has called “a sky- Henry Ford Hospital CEO John $1.5 million starting bid on maintenance employees at The Winter Classic is in new homes in September at scraper sale in Detroit.” Popovich, M.D., invited the Auction.com with a Nov. 5 General Motors Co. jeopardy due to the NHL’s the fastest pace in two With the purchases of the Comedy Central political fun- auction set. the War- player lockout. years, Bloomberg News re- Madison, First National nyman to Detroit and, The Free Press moved ren Technical Center by year’s end af- Ⅲ The Michigan ported. Sales climbed 5.7 Building, the Chrysler House specifically, his hospital. into the Albert Kahn-de- Film Office said a percent to a 389,000 annual (formerly the Dime Build- It’s the latest in an almost signed building in 1925 and ter losing a contract with “Robocop” remake pace, the most since April ing), Chase Tower and a six-month effort of lobbying transitioned out of it gradu- 2010, following a revised handful of smaller commer- the comedian to visit De- ally before closing it in 1998, the automaker and an Eminem- to Philadelphia- produced Web se- 368,000 rate in August, ac- cial buildings in and around troit after he claimed walk- according to cording to figures from the the central business district, ing through downtown De- HistoricDetroit.org. based competitor ries are among Aramark Corp. three projects ap- U.S. Commerce Department. Ⅲ The Detroit proved for state Ⅲ More than half of con- Medical Center has film incentives sumers who use smart- completed a $6 mil- for 2013, the AP phones to research a vehi- lion-plus deal to ac- reported. cle before buying do so quire ProCare “RoboCop,” which has been while at a dealership, J.D. Power Automotive Mo- BEST FROM THE BLOGS Health Plan Inc., a Detroit- filming in Toronto, will in- ’s 2012 bile Site Study found. READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS based Medicaid HMO. clude shots of Detroit land- marks, and Eminem’s “De- troit Rubber” will chronicle OBITUARIES Law’s glass ceiling is low Ho-ho-ho for state’s retailers OTHER NEWS two Royal Oak small-busi- Ⅲ State records show ness owners. Also approved Ⅲ Robb Mahr, a longtime With a few Michigan retailers radio and TV automotive exceptions, business are expecting the best that Ambassador Bridge was the Web comedy “The “ “ reporter in Southeast law firms within holiday season in a owner Manuel “Matty” Mo- Castle,” to be filmed in Southeast Michigan are decade, according to the roun contributed $5.1 mil- Charlevoix. Michigan, died Oct. 16 of doing no better than the most recent Michigan lion last week to the cam- Ⅲ The Michigan Depart- cancer. He was 75. nation as a whole at Retail Index. paign for Proposal 6, which ment of Technology, Manage- Ⅲ Emanuel Steward, own- advancing women into would restrict construction ment & Budget reported the er of Detroit’s legendary equity partnerships, new ” of competing Michigan-On- Kronk Gym and trainer of survey data seasonally unadjusted un- suggests. tario border crossings, the employment rate stood at such boxing champions as Detroit Free Press reported. 8.2 percent in September, Thomas Hearns, Lennox Reporter Chad Halcom’s blog on the legal” business Reporter Sherri Welch’s retail blog can be found at The contributions follow down from 9.2 percent in Lewis and Wladimir can be found at www.crainsdetroit.com/halcom www.crainsdetroit.com/retailblog $4.7 million Moroun gave to August and 10.3 percent in Klitschko, died Oct. 25 in the campaign through July. July. Chicago. He was 68. DBpageAD.qxp 9/13/2012 10:53 AM Page 1
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