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www.crainsdetroit.com Vol. 28, No. 27 JULY 2 – 8, 2012 $2 a copy; $59 a year
©Entire contents copyright 2012 by Crain Communications Inc. All rights reserved Page 3 Henry Ford Chinese automaker sets up headquarters in Birmingham Employers’ deadlines aims to sow Agreement may be near green space on Belle Isle for decisions now loom Aquarium reopening State delay on health exchange muddies waters into upgrade Advanced manufacturing BY JAY GREENE uninsured to Medicaid and pri- The act requires employers Paths, ponds CRAIN’S DETROIT BUSINESS vate insurance plans. with 50 or more employees to pro- 3-D process takes “There was vide health insurance by 2014 or manufacturing to Now that the U.S. Supreme Court LOOKING AHEAD a little disap- face penalties of $2,000 per em- in $500M plan new levels, has ruled, employers can be ex- pointment ployee. The first 30 employees are pected to begin to moving forward Speaker says and frustra- exempt. BY JAY GREENE Page 9 with plans to comply with regula- exchange will be tion” with the If companies choose to pay the CRAIN’S DETROIT BUSINESS tory requirements of the Patient created, Page 18 5-4 decision, fine, most employees would be re- Protection and Affordable Care Employer said Jennifer quired to buy health insurance While Henry Ford Health System’s Act. requirements Kluge, CEO of through the individual market or Detroit flagship hospital has grown That could be a boon for health through 2014, the Michigan state health exchanges with sub- over the past 100 years — a recently insurance agents, brokers, con- Page 18 Business & sidies available based on income. completed $300 million upgrade sultants, insurers and business Professional In a survey of em- and face-lift features 80 private Crain’s Lists associations, as employers seek Association. “Now it is not who is ployers this year, rooms and new operating-room help to meet compliance dead- right and who is wrong. People the association suites — green space was some- Largest OEM parts suppliers, lines over the next three years as want to know how to navigate found that 26 thing the 33-acre hospital campus the health care law moves to this, get this implemented with percent had more of in the 1920s than now. Page 12 add about 32 million the least amount of impact.” would be The hospital system hopes to very or rectify that in a project that could somewhat add $500 million in development at likely to drop their its main campus to the previously health benefits if a announced $1 billion in hoped-for large number of employees were projects on 300 acres the system CRAIN’S WANTS TO SEE eligible for federal subsidies in a owns or wants to develop south of state health insurance exchange. West Grand Boulevard in Mid- YOUR DETROIT RIVER PICS But now that the Supreme town. Crain’s would like you to The plan is still early in develop- share your views on the Detroit See Health Care, Page 18 ment. John Popovich Jr., CEO of River — literally. Henry Ford Hospital, said it most like- Be part of the Aug. ly would include 20 special publication a six-story build- of Crain’s Detroit ing, a parking Business’ Living and Investing in the D by Business is booming structure and de- submitting your favorite “ molition of some river photos and the in ... health care consulting. buildings to cre- stories to go with them. ” ate more green We’re looking for views of the Mark Van Den Branden, Advanced Insurance Underwriters JEFF JOHNSTON/CDB space at an early Detroit River, photos of out-of- cost estimate of the-way hangouts and bars by more than $500 the river or photos of million. Popovich interesting spots to fish, play or The 100,000- relax. Be sure to include an square-foot building could include explanation and story with your State must decide whether to expand Medicaid replacement operating and proce- photos. dure rooms, advanced radiological BY JAY GREENE too early to make a decision the Legislature to evaluate our op- Submit photos by July 27 to imaging, replacement intensive be part of a contest for the best CRAIN’S DETROIT BUSINESS whether to ex- tions and determine the best care units and private patient photo. Prizes will be given to pand the state’s course of action that provides pro- rooms and an expanded emer- the top photos, picked by Michigan’s hospitals, health 1.9 million- tection and security for Michigan- gency department, Popovich said. Crain’s editors. maintenance organizations, in- member Medi- ders,” Snyder said in a statement But he said his larger goal is to The winning photo, and many surers, physicians and other caid program to to Crain’s. “It’s not a decision that create a healing environment med- others, will be used in print and providers are likely to lobby the follow one of can be made immediately or light- ical campus with plenty of green online as part of this annual Legislature during the next year the provisions ly.” publication. space, ponds and walkways for pa- to add 500,000 people to the state’s of the newly up- Part of the Supreme Court’s tients and staff. To submit a photo Medicaid program in the wake of held Patient ruling Thursday said states could electronically, go to www.crains “The old hospital was designed the U.S. Supreme Court’s decision Protection and not be penalized for deciding detroit.com/riverviews. with more green spaces and ponds last week allowing states the op- Affordable against expanding their Medicaid For questions, contact Snyder around it. It was built in over time” tion of expanding Medicaid cover- Care Act. programs — as the act had man- Deputy Managing Editor Daniel as the hospital slowly expanded to age in 2014. “We’re closely analyzing the Duggan at dduggan the 802 beds it now has, Popovich @crain.com or (313) 446-0414. But Gov. Rick Snyder said it’s impact and will be working with See Medicaid, Page 19 See Henry Ford, Page 20
Helping Veterans Re - Enter the Michigan Workforce
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Page 2 CRAIN’S DETROIT BUSINESS July 2, 2012
MICHIGAN BRIEFS Capitol Bancorp set to sell than thrilled when federal budget concerns threatened funding. But Lansing bank, SEC filing hints Auction over drilling rights digs up collusion allegations last week, a National Research Coun- Last week, Crain’s reported on cil report said “timely completion” Calgary, Alberta-based Encana Corp. has been ex- vestigation of his personal financial transactions. should be a priority, calling the the ambitions of the Farmington panding in Michigan’s shale exploration region State records show that the company didn’t partici- Hills-based Bank of Michigan now project “a major new strategic in- since former rival Chesapeake Energy Corp. decided pate in last month’s lease sale. “It was the combina- vestment in nuclear science.” Sup- that it has bought out its majority to leave after spending $400 million on its own devel- tion of disappointing well results and falling commod- owner, Lansing-based Capitol Ban- porters say the project would cre- opment. Now, Encana is exploring allegations that ity prices that made the whole play uneconomic from ate about 5,000 construction jobs corp Inc. Crain’s noted that Capitol it colluded to rig land auctions. Chesapeake’s standpoint,” James Sullivan, an ana- Bancorp “has been selling off and 400 permanent jobs. Encana paid about $185 an acre for the rights to lyst at Alembic Global Advisors in New York City, told Ⅲ The Frederik Meijer Gardens & banks in its portfolio to keep regu- drill oil and natural-gas wells on 2,156 acres at an auc- Bloomberg. lators from shutting it down.” Sculpture Park plans to start con- tion last month conducted by the Michigan Department Encana, Canada’s largest gas producer, and U.S. struction in mid-July on a $22 mil- The next bank to be sold looks to of Natural Resources, Bloomberg News reported last competitors such as Chesapeake and Devon Energy be Capitol National Bank, based on a lion Japanese garden. The Grand week. That’s 88 percent less than the average paid two Corp. began amassing drilling rights four years ago Rapids attraction said last week Capitol Bancorp filing with the years ago in the area. On June 25, Encana said it be- in a geologic formation known as the Collingwood that it exceeded its fundraising U.S. Securities and Exchange Com- gan looking at emails from 2010 between Encana and Shale, which lies beneath more than a dozen coun- goals for the Richard and Helen DeVos mission. The filing shows Capitol Chesapeake executives about bidding strategies. ties in northern Michigan, including Cheboygan, Japanese Garden, named for the Bancorp has an agreement pend- This month, Oklahoma City-based Chesapeake re- Charlevoix and Kalkaska. Amway Corp. co-founder and his ing to sell its stake in Capitol Na- placed more than half its directors and stripped CEO An Encana spokesman declined to comment. wife, who are helping fund the pro- tional, which has branches in Aubrey McClendon of the chairman’s role amid an in- Chesapeake denied collusion with Encana. ject. Construction had been expect- Lansing and Okemos. ed to start in early 2013. Details about a buyer, purchase 90 percent smaller than usual. Find business news from price and closing date were not in- That trucker shortage? A year MICH-CELLANEOUS The Michigan Apple Committee around the state at crainsdetroit cluded in the filings, the Lansing said last week that growers, ship- later, it’s still driving firms crazy Ⅲ Michigan State University was .com/crainsmichiganbusiness. State Journal reported last week. pers and other industry insiders thrilled in 2008 when it won a na- Sign up for Crain's Michigan Capitol Bancorp could file for Almost a year ago to the very predict about 3 million bushels day, Crain’s wrote about the short- tional competition to host the Facil- Business e-newsletter at crains Chapter 11 protection starting will be harvested, The Associated ity for Rare Isotope Beams but less detroit.com/emailsignup. July 30, SEC documents show. age of truck drivers. A year hasn’t Press reported. In a typical year, improved matters. the state produces 20 million to 23 Walter Heinritzi, executive di- CORRECTIONS Another spring casualty: Apple million bushels. rector of the Michigan Trucking Asso- Apple trees bloomed early be- ciation, said the improved economy Ⅲ A story on Page 3 of the June 25 issue and Page 21 of the April 2 edi- crop looks to be down 90 percent cause of the March heat wave, fol- has increased demand for raw ma- tion incorrectly reported that Stanley Dickson Jr. purchased the assets Perhaps this year, the phrase lowed by frosts and freezes. terials and finished products — of Matt Prentice Restaurant Group out of bankruptcy in 2009. The story will be “An apple every other Gov. Rick Snyder has requested and demand for truckers to haul should have said Prentice sold the assets of the restaurant group to month keeps the doctor away.” federal disaster assistance for fruit them. Also, Heinritzi told Dickson after Prentice filed for personal bankruptcy in 2009. The latest victim from the cornu- growers. The Legislature has MLive.com, many older drivers Ⅲ A This Just In item on Page 1 of the June 11 edition used an incorrect copia of catastrophe inflicted on passed a bill offering low-interest are retiring, and tougher stan- corporate name of Lyon Township-based TNG Worldwide Inc. TNG was Michigan farmers this spring: The loans for farmers whose crops dards make it harder to find quali- formerly known as Nailco Group Inc. apple crop is expected to be about were ruined. fied replacements.
Keeping automotive suppliers ahead of the curve
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July 2, 2012 CRAIN’S DETROIT BUSINESS Page 3 Chinese automaker opens HQ here Focus: Real Estate
chase price. Birmingham called good deal, recruiting asset The office will coordinate pro- curement among 150 suppliers in BY DUSTIN WALSH North America and manage the CRAIN’S DETROIT BUSINESS import and export of components, There’s less of a U.S. car market or China the company said in a statement. Shanghai Automotive Industries “ Neel said the new headquarters Corp., China’s largest automaker, market, but an international market. is important to establish the Chi- plans to extend its relationships ” nese company as a global competi- with U.S. suppliers and automak- Gary Neel, Shanghai Automotive Industries Corp. tor. ers through an office in Birming- “The way we look at it, there’s ham. erations Center eventually will em- sign workers at the three-story less of a U.S. car market or China SAIC opened its North Ameri- ploy 100 people and focus on pur- building at 322 N. Old Woodward market but an international auto can headquarters under its North chasing, logistics, technology and Ave. in downtown Birmingham, market,” he said. “SAIC believes American subsidiary, Shanghai Au- engineering, the company said in a said Gary Neel, director of corpo- they have to be viewed as an inter- Unraveling Northern Group’s tomotive Industries Corp. USA Inc., on statement. rate marketing and public affairs. national company, not just a China June 12. It currently employs 50 finance, SAIC bought the building, but tangled web, Page 14 SAIC USA’s North American Op- purchasing, engineering and de- Neel declined to disclose the pur- See Chinese, Page 21
Company index These companies have significant mention in this Creature week’s Crain’s Detroit Business: Advanced Insurance Underwriters ...... 18 Alpha Group ...... 18 Autism Alliance of Michigan ...... 17 comforts Bank of Michigan ...... 2 Belle Isle Conservancy ...... 3 Bernard Financial Group ...... 15 Blue Cross Blue Shield of Michigan ...... 18 spur growth Capital Bancorp ...... 2 Chioini Sarnacki Reynolds Doherty & Platt ...... 15 Crescent Pattern ...... 9 Pet Supplies Plus Detroit Economic Growth ...... 15 Detroit Institute of Arts ...... 22 plans to nearly Detroit Medical Center ...... 19 Detroit Regional Chamber ...... 9 double stores by ’15 Ex-One ...... 9 5-Hour Energy ...... 8 BY SHERRI WELCH Future Hosting Technologies ...... 8 CRAIN’S DETROIT BUSINESS General Motors ...... 14 Livonia-based Pet Supplies Plus is Grand Valley State University ...... 8 adding 17 to 22 U.S. stores this year Hantz Farms ...... 7 and moving its logistics operation Henry Ford Health System ...... 1, 18, 19 out of state as part of a corporate Hub of Detroit ...... 8 expansion. IBI Group ...... 18 The company plans a major roll- BRENDAN ROSS IHS Automotive ...... 11, 21 Jennifer Boardman is co-chair of the Belle Isle Conservancy’s aquarium committee. The conservancy has restocked 12 out of U.S. stores, and to support it JC Beal Construction ...... 8 of the aquarium’s 60 tanks and is working on others. plans to consolidate its Ann Arbor and Jackson distribution sites into Mercer ...... 18 a larger new site in Indiana. Michigan Association of Health Plans ...... 19 Pet Supplies Plus has a huge Michigan Business & Professional Association . . . . 1 growth curve in its sights. Its 2012 North Coast Technology Investors ...... 10 stores will include one in South Northern Group ...... 14 Conservancy fishes for accord Lyon. And nationwide in 2013, the People Plus Management Services Group ...... 16 company plans 55 to 65 stores and The 108-year- an additional 145 to 160 by 2015. Pet Supplies Plus ...... 3 Belle Isle group old aquarium The company said the new Preferred Solutions ...... 8 closed to the stores will be a combination of ProCare Health Plan ...... 19 public in 2005. company-owned and franchise ProtectCell ...... 8 works with city to Boardman says stores. RACER Trust ...... 14 the conservancy reopen aquarium hopes to open it The stores will take the compa- Severstal North America ...... 10 for at least a ny into the Washington, D.C., area Shanghai Automotive Industries ...... 3 this year and bolster its footprint BY SHERRI WELCH few days a Society of Manufacturing Engineers ...... 9 CRAIN’S DETROIT BUSINESS month starting in the Midwest and along the East- in July, provided ern Seaboard, the company said. Steel Market Development Institute ...... 11 Seven years after the Belle Isle it can work out Over the next few years, Pet Sup- University of Michigan Faculty Practice Group . . . . 19 Aquarium closed for lack of operat- an agreement plies Plus plans to move into other Wayne State University ...... 20 ing funds, the Belle Isle Conservan- with the city of markets, including Western states. Detroit. cy and the city of Detroit are Pet Supplies Plus, a portfolio Department index working on an agreement that BRENDAN ROSS company of New York City-based could lay the groundwork to re- Irving Place Capital, says it’s the BANKRUPTCIES ...... 4 open the 108-year-old attraction. is in place, the conservancy hopes Belle Isle Aquarium Committee third-largest pet specialty retailer The agreement, which should to secure approval from the city and judicial staff member for in the nation, with 258 stores. Of BUSINESS DIARY ...... 19 be completed in two to three to reopen the Albert Kahn-de- Judge Elizabeth Gleicher of the those, 108 are company-owned. CLASSIFIED ADS ...... 17 Michigan Court of Appeals weeks, officially would give the signed aquarium to the public, . Fifty-five of the 258 stores are in KEITH CRAIN...... 6 with the promise that it will cover When the aquarium closed in conservancy access to the aquari- Michigan. LETTERS...... 6 um building and allow it to care the operating costs. April 2005, the 250 koi fish that The company hired Wixom- MARY KRAMER ...... 6 for the fish and other aquatic life, “It’s the only aquarium in the summer in the pond outside the based Gerdom Realty & Investment to city COO Chris Brown said in an state,” said Jennifer Boardman, OPINION ...... 6 emailed statement. Once the deal co-chair of the conservancy’s See Aquarium, Page 21 See Pets, Page 20 PEOPLE ...... 16 RUMBLINGS ...... 22 WEEK ON THE WEB ...... 22 Nonprofit news Dig deep THIS WEEK @ Sign up for the weekly Subscribers to Crain’s get unlimited access to articles dating back to 1994 at report at crainsdetroit crainsdetroit.com, a convenient and powerful research tool for anyone doing WWW.CRAINSDETROIT.COM .com/getmail. business in Southeast Michigan. Online-only subscriptions cost $36 per year. 20120702-NEWS--0004-NAT-CCI-CD_-- 6/29/2012 4:55 PM Page 1
Page 4 CRAIN’S DETROIT BUSINESS July 2, 2012 Crain’s names associate publisher, hires marketing director, digital content manager Crain’s Detroit Business has an- marketing agency, one of the first courses at Michigan State University. nounced three major appoint- of its kind in the region. “With Marla’s promotion and the ments. At Crain’s, addition of Eric Advertising Cedo will work and Nancy, we Director Marla on building com- are building on Business on Need growth capital? When businesses Wise was named munities among our already face the up-and-down demands of associate pub- readers and strong founda- the rise? growth, purchasing goods, or even to make lisher. Wise¸ 54, helping advertis- tion,” said payroll, Crestmark’s service and joined Crain’s in ers use Crain’s Crain’s Publish- innovative solutions can be the answer. May 2003 as di- digital and print er Mary Kramer. rector of adver- platforms to “Our reporters Providing accounts receivable financing and tising. In her reach target au- already produce asset-based lending to small- and mid-sized new role, she diences. Michigan’s businesses nationwide for over 15 years. will continue to Wise Nancy Hanus Cedo most-influential Hanus supervise advertising sales activi- will join Crain’s July 9 at the new business publication and website; Contact us today! ties and build on partnerships and position of manager, digital con- the team captured several top hon- projects for the publication and its tent strategy. Hanus, 50, will coor- ors at a national editorial awards Scott Frederick online extensions. dinate the publication’s online competition for business publica- www.crestmark.com Matt Dekutoski Eric Cedo has been named direc- strategies for e-newsletters, break- tions in June. (See story below.) 888.999.8050 Anntreal Hemmingway-Smith tor of integrated marketing. Cedo, ing news and the overall website. “Now we hope to build on the 37, had been director of marketing OVER $100,000,000 PROVIDED TO NEW CLIENTS IN 2012 Hanus most recently worked as connections we have to our read- at Unitask Software in Bloomfield a regional editor for Patch.com. ers and create an even greater Hills and, before that, for Unity Stu- Before that, she was director of sense of community and connec- dios in Allen Park. In 2006, he new media at The Detroit News and tion that will benefit them person- launched BrainGain, a social media had taught online journalism ally and professionally.” Awards honor Crain’s website, reporting, design Crain’s Detroit Business has won tem for Detroit. lications in the U.S., Canada and seven awards from the Alliance of Silver, to Shea, for on June 6, Australia. Area Business Publications, includ- 2011, being the first to report the There were 657 entries from 51 ing a silver for best website in the $325 million sale price of the De- publications. The contest is “best of show” portion of the com- troit Pistons. judged by professors from the Uni- petition. AABP is a trade organization of versity of Missouri School of Jour- Other awards were: 64 regional and local business pub- nalism. Gold to reporter Nancy Kaffer for her Aug. 1, 2011, profile of Kirk Lewis, chief of staff to Detroit May- or Dave Bing. Gold to multimedia reporter Nathan Skid for his Table Talk blog on restaurants and the food indus- try. Silver in the multimedia pro- ject category to Skid and former Web Developer Steve Williams for the online presentation of Crain’s annual “20 in their 20s” feature. Senior Designer Jeff Johnston won a bronze for his print presentation of the feature.
ONE HU Silver for best coverage of lo- G ND IN R T E cal breaking news to reporters A D R Y B E
E A
L Chad Halcom, Sherri Welch, Kaffer, R
E S Deputy Managing Editor Daniel C 100 Duggan and Enterprise Editor Bill Shea. The coverage took place over 24 hours in December and focused on the conflict created after state and federal officials decided to give financial backing to a region- al bus plan rather than a rail sys-
BANKRUPTCIES The following businesses filed for Chapter 7 or 11 protection in U.S. Bankruptcy Court in Detroit June 22- 28. Under Chapter 11, a company files for reorganization. Chapter 7 involves total liquidation. Sports Palace Store Inc., 28592 De- quindre Road, Warren, voluntary Chapter 11. Assets: $49,100; liabilities: $414,085. International Graphic Equipment LTD., 00 23967 Ashley Drive, Brownstown SAVE $100 OFF Township, voluntary Chapter 7. As- sets: $102,661; liabilities: $2,340,309. Trillium Circle LLC, The Xenos Law Firm PLC, 261 E. Maple Road, Birming- ham, voluntary Chapter 11. Assets and liabilities not available. — Ryan Kelly DBpageAD.qxp 6/26/2012 1:41 PM Page 1 20120702-NEWS--0006-NAT-CCI-CD_-- 6/29/2012 5:44 PM Page 1
Page 6 CRAIN’S DETROIT BUSINESS July 2, 2012 OPINION MARY KRAMER Don’t delay state Our health issue: Job training About 24 hours before ducing waste, fraud got aptitude and is a quick study.” the U.S. Supreme Court’s and costs. But a company’s screening filters health care decision was I hope jobs and the may not find that person. made public, I had break- economy won’t take a Lack of training is No. 2. The re- insurance exchange fast with about 70 mem- back seat to the health gion needs more fast-track training bers of the Plymouth care furor. Since about on a larger scale. WIN’s data con- ast week, the U.S. Supreme Court let the controversial Chamber of Commerce. 70 percent of the U.S. cluded that IT and advanced manu- Affordable Care Act stand on constitutional grounds. The hot topic was sur- economy is tied to con- facturing are Southeast Michigan’s L Some may not like it, but the decision makes it prising: the headache of sumer purchases, con- greatest needs. So WIN has been working with state officials and lo- clear: This law is, in fact, the law of the land. So it’s time for having job openings with sumers need to be a) nobody to fill them. Engi- employed and b) confi- cal partners to promote programs Michigan lawmakers to quit stalling on creating a statewide neering topped the list. dent about the future like “Shifting Code,” a fast-track im- insurance exchange. The No. 1 agenda item to open their wallets. mersion in high-demand IT skills. They should ignore bad advice from Michigan Attorney for economic recovery should be And confidence took a dip nation- At least four IT-reliant companies General Bill Schuette, who is urging them to wait until after putting more people to work. In this ally in June — a dip that’s parallel to in Detroit have participated to cre- ate short-term training for IT work- the November presidential election before deciding to cre- state, there’s a parallel: fast-track the slowing in hiring and a slight ers in “batches” of 25 people. ate an online exchange. training to get qualified people who uptick in unemployment. It’s all are looking for work into one of connected. If these programs can scale up, To delay meeting timetables set forth in that law puts thousands of open jobs. Lisa Katz is executive director of Southeast Michigan should shout it the state at risk in three ways. But as of Thursday morning, it the new Workforce Intelligence from the rooftops and add that abili- First, it could lose federal funding to help create the ex- looks like the presidential cam- Network, a nonprofit focused on us- ty to respond quickly to employers’ needs in sales pitches to lure more change. paign in November will instead ing data in a smart way to connect IT-reliant companies to the region. Second, it could result in the federal government foist- shift focus to whether Americans employers, colleges and workforce ing an exchange of its own creation on the state. should carry health insurance. agencies in Southeast Michigan. Mary Kramer is publisher of The business community’s stand Why are there so many unfilled Crain's Detroit Business. Catch her Third, anybody who has ever been engaged in a major IT on the new law is mixed (like that of jobs? take on business news at 6:10 a.m. project knows it takes time to build it right. Gov. Rick Sny- many Americans). Maybe “reform” Two reasons, she says. One is Mondays on the Paul W. Smith show der has outlined a vision of an exchange that would be as would have had more business sup- that employers may be too picky. on WJR AM 760 and in her blog at easy for Michigan residents and small businesses to shop port if there were fewer rules and “They could find 70 percent of what www.crainsdetroit.com/kramer. for policies as it is to use travel websites like Expedia or regulations and more focus on re- they need in someone who’s also E-mail her at [email protected]. Travelocity. Since it was passed in 2010, the Affordable Care Act has never polled well with Americans, but some of the features of the act — eliminating the ability for insurers to blackball LETTERS TALK ON THE WEB individuals with pre-existing conditions, insuring adult children until age 26 on parents’ policies — poll very favor- Irony in biz program From www.crainsdetroit.com ably, as high as 80 percent. Editor: Re: House vote on health exchange Reader responses to stories and So if voters ultimately decide to elect Mitt Romney presi- I read the excellent article “Master But if we wait until after No- blogs that appeared on Crain’s dent, a dismantling of the health care law is not even cer- gardeners” in the June 18 edition with vember, we won’t have this Oba- website. Comments may be great interest. Many great success sto- tain. It also depends on which parties control both cham- ma health care to worry about, it edited for length and clarity. ries. But why is an “Orlando, Fla.,- bers of Congress. will be repealed. I wouldn’t spend based Internet marketing and design one penny on this, it won’t be here Michigan can’t afford to wait for that legislative process agency” part of the national team that rest of the civilized nations in pro- long. to play out. It has just two sessions scheduled this summer the Michigan-based Edward Lowe viding affordable health care for Business in the burbs and only eight in September. Delay doesn’t make sense. Foundation coordinated through the all its citizens as a natural right. Actually, the bigger issue financially is the decision law- National Center for Economic Garden- I am deeply disappointed by Milton Alexander makers would face on expanding the state’s Medicaid pro- ing to help state companies? Why is it Mr. Schuette, who certainly does that Michigan organizations that push gram to include an additional 500,000 low-income people not have the best interests of the Re: Deaths from lack of insurance? their Michigan base as part of their people of Michigan at heart. If he who could be eligible. To place any weight on a study value proposition can’t use that crite- doesn’t want all of us to have af- of this nature would be akin to As Jay Greene reports on Page 1, part of the Supreme ria in their own evaluation? fordable health care, he should re- saying: “Study finds that people Court’s decision held that states could not be penalized for My firm, based in Ann Arbor, could sign and go live in a cabin in the without homes tend to die soon- have easily done this work. But the ar- woods — far, far from civiliza- deciding against the expansion. A state Senate Fiscal er.” … Is (lack of) access to home- ticle makes no mention of any attempt tion. Agency report issued last week said Michigan could save as ownership the real culprit, or is at a Michigan-based marketing part- Dr. E much as $200 million through 2017 if it expanded the pro- ner. Walk the walk, people — if you there some deeper reason that just gram because the federal government would pick up 100 tell customers and prospect to “buy Re: Supreme Court upholds reform wouldn’t sound as interesting or percent of additional costs. Michigan,” you should do the same. provocative? It’s about time the U.S. joins the Dean Hill The devil may be in the details of what would happen af- Wherever possible, our firm does. Sean Hickey ter. But that review shouldn’t be tied to moving ahead with COO Send your letters: Letters may be edited for length and clarity. Email the insurance exchange. PWB Marketing Communications [email protected] Ann Arbor KEITH CRAIN: Was it a surprise health care ruling or not? No one had a clue how the they are sadly mistak- that campaign, much to dustry is trying to figure out what several options for them to consid- Supreme Court was going to rule en. This is one of those the delight of all broad- this all means. Even more impor- er, not just black or white. last week when it announced the 5- issues that seems to casters in the state. tantly, how hard will it be to try This fall’s election would seem 4 decision to uphold the Affordable have polarized the coun- This is usually the time and run a health care business to have a lot more riding on it than Care Act. try; no opinion poll has of year when radio and when you are not sure whether the normal presidential election. About the only thing everyone shown anywhere close television stations rake the rules will change in six There seem to be a lot more policy seemed to agree about was that the to 50 percent in support in the cash from politi- months? matters that will be quite differ- court obviously had not shared its of the law since it was cal campaigns, every- Hospitals look at this decision ent, depending on who gets elected decision with the White House; if passed in 2010. thing from state races more favorably than maybe health president. it had, we would have learned Now they’re saying to congressional and care insurers, who in this state are It’s going to be a very wild ride ahead of time. It was remarkable the matter won’t be set- Senate campaigns. If dominated by Blue Cross Blue until November. But don’t forget that, considering how many peo- tled until at least the the presidential candi- Shield of Michigan. the August primary. There are ple knew about the decision, there presidential election in dates fight over Michi- My guess is that they all had important results riding on that, was not a single leak. It was amaz- the fall. gan, there will be even more mon- contingency plans in place for too. ing for Washington. It certainly looks like Michigan ey spent. whichever way the Supreme Court If you think it’s going to be civil, If everyone thinks this is over, is right there front and center in Meanwhile, the health care in- was going to rule. There had to be you’re kidding yourself. 20120702-NEWS--0007-NAT-CCI-CD_-- 6/29/2012 4:48 PM Page 1
July 2, 2012 CRAIN’S DETROIT BUSINESS Page 7 Concerns stall urban farm land sale; Hantz, city officials remain hopeful
BY NANCY KAFFER populations of more than 100,000 to ing large tracts of it off the market. to sell the land to Hantz and allow shift to commercial production. But CRAIN’S DETROIT BUSINESS draft local agricultural ordinances, Hantz’s first idea, to grow fruit the farm to use the land as it’s cur- we’re willing to put money at risk.” Score said. But because it’s an ad- and vegetables, was discarded af- rently zoned, said Karla Hender- Buying property, doing demoli- Representatives of Hantz Farms ministrative action, rather than ter the enterprise heard concerns son, Bing’s group executive for tions, cleaning up property and LLC were gearing up for a news legislative action, there’s concern from residents about the use of planning and facilities. She, too, planting trees is expected to con- conference last week. Ready to be in the city that a subsequent guber- pesticides and fears that having thinks the sale can be completed sume about $5 million over three unveiled were a joint effort of the natorial administration could edible crops would increase the lo- by the end of summer. years, he said. city of Detroit and Michigan State overturn that decision. cal rodent population. That means planting trees for There’s about a 5 percent annual University to start a food systems in- So Detroit’s agricultural ordi- “There’s no point in launching a beautification purposes only, return on equity over the 60-year novation cluster and the sale of nance is still in development. Todd new production venture of this Score said. tree crop cycle, Score said. about 1,900 city-owned lots to said the working group developing type that would make the neigh- “Because Detroit doesn’t have “That’s not investment grade,” Hantz Farms for about $600,000. the ordinance is awaiting an opin- bors anxious when we have more agricultural zoning yet, we’ve made he said. “John has several invest- The news conference went off, ion from Attorney General Bill comfortable production options,” a commitment to buying the city’s ment-grade companies, but this is but not exactly as planned. The Schuette that should clarify some Score said. land and planting trees, which to a venture that’s different. … He’s MSU initiative was launched, but governance issues. Because Detroit doesn’t yet have our understanding, and understand- willing to make this type of invest- the land sale to Hantz has been — Hantz’s idea was to bring an agricultural zoning ordinance, ing of the city’s law department, is ment.” yet again — postponed. derelict land into productive reuse Hantz can’t operate a legal, appro- consistent with existing zoning,” Nancy Kaffer: (313) 446-0412, The brainchild of financier and and spur development, but also to priately zoned commercial farm- Score said. “If at some point, there’s [email protected]. Twitter: Detroit resident John Hantz, the increase the value of land by tak- ing enterprise. So the city decided an agricultural ordinance, we could @nancykaffer commercial ur- ban farm was first proposed in 2009. But politi- cal and policy challenges have dogged the pro- ject, and Hantz Farms’ scope has changed radical- ly since its incep- Hantz tion, when Hantz envisioned orchards and vegetable patches dotting Detroit’s east side. Still, city officials, along with Hantz Farms President Mike Score, say they’re confident that a land sale can be negotiated. “Our goal is to get the proposal before council for a summer vote,” Score said. The farming operation has been acquiring property from private owners for years, but the lion’s share of the land required for the project to be successful is city- michigan.gov/mshda owned. The administration had been set to bring approval of the land sale to the Detroit City Council last week — hence the planned news confer- ence — but concerns voiced by some City Council members and City Planning Commission Direc- tor Marcell Todd Jr. stalled the deal. City Council President Pro Tem Gary Brown said that neither Hantz nor Bing has put in the legwork nec- essary to engender council support. “I think they need to work the You’ve got a partner. Your MSHDA. floor, begin to talk to council mem- bers individually, and get it into the committee so there can be a public Preventing foreclosure? hearing and a discussion to make sure that it gets approved,” he said. “I do support the initiative; howev- We help. er, the devil’s kind of in the details.” Brown said there’s not a develop- ment agreement attached to the Resurrecting Main Streets? project — and that’s another area of concern. We’re there. Todd says it’s a matter of crafting sound public policy, that selling land to Hantz without a develop- ment agreement governing use of Fixing up the neighborhood? the site would open the door to oth- er, potentially harmful, transac- Call us. tions. Control, and who has it, has been a large part of Hantz Farms’ jour- ney. Part of the problem centers on Helping to build affordable housing? governance of farms. The state’s Right to Farm Act, geared toward We’re on it. rural farming operations, makes the state the authority in all mat- ters agricultural. But urban agri- We’re working to make Michigan vibrant, by utilizing cutting edge housing andTTY 800.382.4568community programs culture is by nature located inside and providing sound advice. If you’re interested in improving your home, neighborhood or community, another governmental jurisdiction, and the idea of ceding control over you’ve got a partner. Your MSHDA. large tracts of land is unpalatable to many municipalities. TTY 800.382.4568 Equal Housing Employer/Lender Within the Right to Farm Act, Score said, there’s an administra- tive exception allowing cities with 20120702-NEWS--0008-NAT-CCI-CD_-- 6/29/2012 4:47 PM Page 1
Page 8 CRAIN’S DETROIT BUSINESS July 2, 2012 Advice from entrepreneurs: Fight hard to grow the business
BY RYAN KELLY SPECIAL TO CRAIN’S DETROIT BUSINESS I think you’d want to be in the If you want to increase your “ chances of running a successful trench with the guy who has business, be a bulldog and don’t take “no” for an answer. actually dodged bullets before. That was the message from ” small-business founders who Manoj Bhargava, 5-Hour Energy talked about their strategies for growth during the Crain’s Salute to Entrepreneurs event last week when trying to grow a business. award winners: Vik Patel, owner at the Detroit Golf Club. “We are pragmatic and persistent of Novi-based Future Hosting Tech- Among six business leaders hon- as hell,” said Rob Emery, co-founder nologies LLC; Marie Seipenko, own- AARON ECKELS JC Beal Construction Inc. President Fred Beal shares advice as part of a panel of ored by Crain’s with the Salute to of Novi-based ProtectCell, which er of Northville-based Preferred So- Salute to Entrepreneurs winners, on stage with Vik Patel (left), owner of Novi- Entrepreneurs Award, there were turned a profit for the first time af- lutions; Fred Beal, president of based Future Hosting Technologies LLC, and Marie Seipenko, owner of many similar stories. A common ter four years in late fiscal 2011. Detroit-based JC Beal Construction Northville-based Preferred Solutions. theme was the need to keep fighting He spoke along with the other Inc.; Scott Dulchavsky, CEO of Hen- ry Ford Hospital’s Innovation Institute in Detroit; and Darren Brouhard, co-founder of nonprofit bike-re- seller the Hub of Detroit. Most of the six entrepreneurs said they worked with a mentor along the way. Patel learned one of his most use- “Turns out we’d been under-forecasting.” ful business rules from his mentor. However large a company grows, he said, always remember: “Pick up People who know Manufacturing, know BDO. the phone and call your customers.” Manoj Bhargava, creator of the popular 5-Hour Energy drink, told small-business owners to study the human nature of both their cus- tomers and their competitors. Education is important, he said, but only when it comes with experi- ence. He cited an example of being in a trench at war, and asked if someone would want to be there with the sergeant who has studied bullets all his life or the one who has been in a fight and has been shot at. “I think you’d want to be in the trench with the guy who has actu- ally dodged bullets before,” Bhar- gava said. A large part of success comes with understanding human nature, something that can’t be taught in a classroom, he said, but can be learned partly through social inter- action and life experience. Thomas Haas, president of Grand Valley State University, agreed that an education needs to have practi- cal application. He compared Grand Valley to a growing compa- ny because it was founded in 1960, making it much younger than oth- er public universities in Michigan. “We’re a lot like the startup companies,” he said. Haas emphasized living by the “five R’s”: relevance, rigor, return on investment, relationships and reach. The event wrapped up with a panel focused on business growth resources and economic gardening trends with analysts from the Michigan Economic Development Corp. They pointed to programs such as Pure Michigan Business Connect, an $8 billion public-pri- The Manufacturing Practice at BDO vate initiative designed to help state companies grow. It includes a One of the United States’ largest industries is supported by BDO’s largest B2B network, support services, and an economic gardening pilot industry group. The Manufacturing & Distribution practice combines accounting, program that is being expanded. tax, and business advisory with industry prowess. Whether you’re looking to leverage The panelists said there is good international operations, grow through acquisition, or optimize inventory management communication among groups and stakeholders in Michigan seeking systems, BDO stands ready with proactive information and guidance wherever in the to help existing companies grow. world you do business. “A lot of the services here in Michigan already thought they Accountants and Consultants were doing economic gardening,” www.bdo.com/manufacturing said Harvey Koning, a panelist and partner at the Grand Rapids-based © 2012 BDO USA, LLP. All rights reserved. law firm Varnum LLP, which is partic- ipating in Pure Michigan Business Connect by donating legal services. 20120702-NEWS--0009-NAT-CCI-CD_-- 6/29/2012 11:51 AM Page 1
July 2, 2012 CRAIN’S DETROIT BUSINESS Page 9
REPORTER’S NOTEBOOK
Dustin Walsh writes about auto suppliers, LIGHTER, STRONGER the steel industry, Steelmaker Severstal says it higher education and Livingston and has winning strategy, Page 10 Washtenaw counties. Call (313) 446-6042 or write [email protected] Innovations: Advanced manufacturing Dustin Walsh For state biz, a point of sale Last week, sales and purchasing executives from Chicago-based Boeing Co. met with Michigan Growing by layers companies at defense incubator Velocity in Sterling Heights to discuss potential contracts and foster new business relationships. The group met as part of the Detroit 3-D takes manufacturing to the next level Regional Chamber’s Connection Point, a program funded by the U.S Economic BY DUSTIN WALSH Development Administration. HOW DO THEY DO THAT? Scanninganning CRAIN’S DETROIT BUSINESS mirrorrror Connection Point was founded in Additive manufacturing makes three-dimensional LaserLaser 2010 and fully operational by February 26-year-old manufacturing process objects by turning a computer-aided 2011. It has sparked millions of is gaining traction across the globe design into thin, digital dollars of work for Michigan-based cross-sections. The A and in Southeast Michigan as tech- object is built out companies from out-of-state and nology rises to meet the complexity of of successive international customers. the process. layers of a Powder Product The program — which works across Some experts call additive manufac- powdered resin supply taking shape Roller 24 industries, including agriculture, turing, or 3-D printing, the next indus- or other material aerospace and defense — has trial revolution. Others say the solidified by generated more than $146.1 million exposure to laser Powder bed process will remain a niche manufac- or ultraviolet light, Powder supply in bids for Michigan companies, turing technique. each layer resulting in more than $16 million in Either way, it’s growing. Additive corresponding contracts, said manufacturing is a $1.7 billion busi- to a cross-section Trevor Pawl, ness and is projected to reach $3.1 bil- and all of them fused together executive director. in turn. In this example, lion by 2016, according to Fort Collins, a roller lays down “Our job is to Colo.-based consulting firm Wohlers As- sell home,” he a new layer of Finished sociates Inc. resin after each said. “We really product Created and patented in 1986 by cross-section believe, with the Chuck Hull, founder, president and is “printed.” JEFF JOHNSTON/CDB, ADAPTED FROM PONOKO.COM progress our supply base has chief technology officer for Rock Hill, S.C.-based 3D Systems Corp., additive made with industries like automotive to do more makes additive manufacturing tools manufacturing had meager begin- optimization and with additive manufacturing, Tomlin- for large industrial applications, with nings. Hull called it stereolithography Pawl engineering son said. sales to Ford Motor Co. and John Deere & — using a beam of ultraviolet light to services, we’re the best in the world, North Huntingdon, Pa.-based ExOne Co. solidify a thin layer of liquid plastic and not just in automotive.” Corp., with a sales office in Troy, Ford purchased several of into a prescribed shape. The Boeing put up $4 million in ExOne’s $1 million-plus tools process is then repeated hun- contracts for Michigan companies to for use at the automaker’s dreds or thousands of times, bid on. Was it stamped, cast or Beech Daly Technical Center building an object layer by Other organizations involved machined? Nope. ExOne in Dearborn Heights, said layer. Corp. built up this include NASA and Connecticut-based David Burns, ExOne’s presi- Three-D printing is stainless steel sample aerospace firm Pratt and Whitney. dent and COO. similar to printing a piece layer by layer — A major user of the program is Burns said as parts, ma- computer document. 300 in all — through Germany-based Deutz AG, which has chines and technologies get Hit “print,” and the additive manufacturing, put roughly $87 million worth of work also known as 3-D printing. more complex, additive man- “printer” adds successive out for Michigan companies to bid. ufacturing gains more trac- layers out of material like a Christian Krupp, CFO for Deutz AG tion because a more complex Burns plastic or alloy resin to create a for the Americas in Georgia, said part is cheaper to build in a 3-D print- solid object — layered like an Deutz had little production in the U.S., ing tool than a dense, less intricate intricate, industrial tiramisu. but currency fluctuations left the part. The layers are measured in European agricultural engine maker That’s because the process adds ma- microns — one one-thousandth of a exposed. terials, like steel or plastic, to make a millimeter. “Sourcing in the dollar region has product. Traditional machining cuts The process has typically been become more and more important with away at a block of material, and as a used in prototyping parts, but new currency fluctuations,” he said. “We part gains in complexity, so does the started to explore entering the U.S., advancements in the technology machine and its ability. and our first question was, ‘Where’s are creating a stir in Southeast “Simplicity costs more in additive the auto industry located?’ because Michigan, said Mark Tomlinson, manufacturing,” Burns said. “As we they must have a solid supply base.” executive director and continue to drive down the costs of Krupp said he contacted a number CEO of the Dearborn- running our machines, we’re able to of agencies but was unable to find a based Society of Manufac- make more headway in volumes.” better service than Connection Point. turing Engineers. Oak Park-based Crescent Pattern Co. “I spoke with a lot chambers after I Tomlinson does prototyping for both Ford and made contact with the Detroit called additive manu- General Motors Co. and uses additive Regional Chamber but didn’t get the facturing transforma- manufacturing. same response,” he said. “Now, after tional. Crescent designs drivetrain, engine our third visit, we’ve met with 30 to “This is not a new tech- and transmission patterns and ma- 40 suppliers with great success.” nology, but it’s maturing chine molds for Ford to use in the au- Pawl said once the meetings are to a point where it can be Tomlinson tomaker’s additive manufacturing ma- scheduled, it’s easy to sell the state utilized more efficiently than five or chines at its Beech Daly plant. For GM, to potential customers. 10 years ago,” he said. “We’re really Crescent ships its designs and molds to “People want to see Detroit and on the cusp of large manufacturers ExOne for the process. Michigan come back to what it was, evaluating the technology as a manu- Brian Lambert, vice president at and they always see a little bit of facturing process rather than (to) just Crescent, said additive manufacturing Michigan in themselves,” he said. use for prototyping.” allows for quick changes in the devel- “Once you get going on telling the These advancements include the in- Michigan story, it’s something people troduction of various metals, allowing gravitate toward naturally.” See 3-D, Page 10
NATHAN SKID/CRAIN’S DETROIT BUSINESS 20120702-NEWS--0010,0011-NAT-CCI-CD_-- 6/29/2012 9:43 AM Page 1
Page 10 CRAIN’S DETROIT BUSINESS July 2, 2012 Focus: Advanced Manufacturing 3-D: How it Lighter, stronger: Severstal stacks up says it has winning strategy Economic ■ From Page 9 Consulting BY DUSTIN WALSH its new $1.4 billion U.S. flat-rolled opment process. CRAIN’S DETROIT BUSINESS carbon steel mill in Calvert, Ala., “A program we’re working on up for sale in mid-May. now,the part has gone through five Falling demand and plunging ThyssenKrupp declined to or six iterations,” he said. “With prices continue to trample the comment due to the possible sale this technology, we’re able to turn steel industry, but innovations in of U.S. operations. around these changes in days in- high-strength steel are fueling Meanwhile, the North Ameri- stead of weeks and months.” new local investment by one can subsidiary of Russian steel Todd Nissen, corporate commu- steelmaker. conglomerate Severstal OAO cele- nications manager at Ford, said in Dearborn-based Severstal North brated the grand opening of its an email that additive manufactur- America made a late entry into $1.4 billion new cold mill plant ing allows the automaker to re- the North American market, in and North American headquar- duce the time to produce a proto- 2004, and reinvested in its his- ters last month. type by 90 percent. toric metro Detroit plant — “If you want to be successful, Burns said additive manufactur- moves the steelmaker says saved you have to invent a business ing machine volumes are 10 times it from falling victim to the cur- model that is flexible,” Alexey higher than 30 months ago. rent downward pressures on Mordashov, CEO and largest In March, President Barack Oba- prices. Steel prices have fallen shareholder of Severstal OAO, Economic Damages ma announced a $1 billion initia- more than 12 percent since Feb- told Forbes at the event. “We be- tive to create the National Network ruary, to $723 a ton from $827, lieve we are basically on the & Testimony for Manufacturing Innovation, com- The Wall Street Journal reported. right track. We should be much Valuation Services posed of up to 15 institutes for man- Industry research firm World more resilient. We should be ufacturing innovation in the U.S. Steel Dynamics expects prices to much more agile. We should be Based on Germany’s Fraunhofer- drop below $700 a ton this year. able to adjust our cost base to the Gesellschaft research organization, The drop is largely due to changing environment.” the U.S. institutes will bring to- falling coal prices. Coal, a raw The new mill is expected to help gether industry, universities and material used in steelmaking, has the steelmaker expand its market community colleges, federal agen- fallen more than 33 percent over share in advanced high-strength cies, and regional and state organi- the past 12 months to $210.50 per steels for the automotive market. zations to invest in industrially rel- ton, according to Bloomberg data. evant manufacturing technologies. In May, Sparrows Point, Md.- Lightweight champ The first institute will focus on based RG Steel LLC filed Chapter Helping Drive Value in Michigan additive manufacturing. 11 bankruptcy and closed three Aluminum and other materi- Currently, two proposals, one plants, laying off as many as 4,000 als replaced many steel auto led by the University of Michigan, are employees. Washington D.C.- in the works to persuade the Oba- based ThyssenKrupp USA Inc. put See Next Page ma administration to locate the in- stitute in Southeast Michigan. But in the meantime, Tomlinson said he expects additive manufac- Our friends in congress turing to grow here for certain Why Should parts, but that the technology’s limitations will keep it from mass won’t take time adoption. They Trust YOU? “It is not suited for all parts man- to remind you, so we are: ufacturing,” he said. “It will have a place in auto, defense and medical Your $5 million transfer tax gift card is set to devices, but if you need critical tol- expire at the end of this year – December 31, 2012. erances or strength, you still need to use materials that can’t be made BBB Accredited Businesses in an additive machine.” Ann Arbor venture capital firm are committed to honest, ethical Congress’ gift North Coast Technology Investors LP remains interested in additive and fair business practices. to your heirs manufacturing despite an earlier investment that didn’t pan out. North Coast invested in Ann Ar- $5,000,000 bor-based Solidica, which used addi- tive manufacturing for aluminum Show Your Customers What parts, in 2000. Despite early growth, the company sank soon after. YOU Stand For “We will absolutely continue to look for investments (with this GIFT CARD technology),” said Hugo Brown, a Expires December 31, 2012 partner at North Coast. “It’s been overhyped in the past, but it’s made tremendous progress. “It’s a fundamental trend in manufacturing, but for venture In December of 2010, President Obama signed into law capital, (the question is) whether it an unprecedented tax legislation that allowed, for a limited will advance in a time frame to be ® time, a cumulative, maximum lifetime transfer of up cost effective.” Crescent has already performed to $5 million per person – estate and gift tax free. limited manufacturing runs using additive manufacturing for pro- Download our white paper duction electric vehicles — some- ® to learn more about this law and how thing that five years ago no one Start With Trust Schechter can maximize your gift to heirs. thought would have been possible, Lambert said. Visit: www.schechterwealth.com/giftcard “I do see a future where this Join the Better Business Bureau could eventually be used in more Serving Eastern Michigan and the Upper Peninsula production (rather than prototyp- ing),” he said. For more information: Dustin Walsh: (313) 446-6042, [email protected]. Twitter: bbb.org or 248-223-9400 248.731.9500 @dustinpwalsh 20120702-NEWS--0010,0011-NAT-CCI-CD_-- 6/29/2012 9:44 AM Page 2
July 2, 2012 CRAIN’S DETROIT BUSINESS Page 11 Focus: Advanced Manufacturing
From Page 10 to re-evaluate Severstal’s applica- parts beginning in the 1980s, but tion. Two of the congressmen were advanced high-strength steels of- senators from Indiana (home to fer automakers more safety and U.S. Steel Corp. and ArcelorMittal Finding the perfect new space can be lighter weight than previous itera- USA plants) and Pennsylvania tions of the metal, said Ron (headquarters of U.S. Steel). meticulous time consuming work. Krupitzer, vice president of auto- The congressmen contended motive for Southfield-based Steel that Mordashov, a Russian worth We’ll call you when it’s done. Market Development Institute. roughly $18.5 billion according to “The high-strength steels are reports, could afford the mill con- growing, and it’s largely because of struction on his own dime. more severe testing requirements “Our competitors, they want to from NHTSA (National Highway Traffic be in this market because they see Safety Administration),” he said. demand is going up,” Kuznetsov “These steels are most effective in a said. “The last thing they wanted crash and are offer- was us as a new ing this strength at entrant in this much lower Our competitors, market to take the weights than tradi- “ lead. We saw this tional steels.” they want as an opportunity, The weight and they didn’t.” reduction is to be in this Pittsburgh- important as based U.S. Steel, in automakers market a joint venture face stricter with Japan-based fuel economy because Kobe Steel Ltd., will standards, begin operating a Kruptizer they see line similar to the said. proposed Severstal U.S. Corpo- demand is line at its Pro-Tec rate Average Fuel Coating Co. plant in Economy stan- going up. Leipsic, Ohio, by dards require au- ” the end of 2012. Lease Renegotiation? No problem tomakers’ fleets to Sergei Kuznetsov, Severstal NA Severstal put average 54.5 mpg construction of its It takes a lot of work to identify the ideal location, by 2025. line on hold before reapplying for negotiate terms and execute a lease. Relax and let To prove the capabilities of a smaller $320 million DOE loan to us handle all of your commercial real estate needs. these steels, the global steel indus- complete the project. Tom Lasky, Mike Ziecik and Jacob Sworski try and SMDI designed an automo- bile 35 percent lighter than bench- Plant reshuffling #SPLFSBHFt-PBO3FTUSVDUVSJOHt-FBTF/FHPUJBUJPOt/PUF1VSDIBTFt1SPQFSUZ3FQPTJUJPOJOH marked vehicles that use mostly aluminum body structures. Severstal acquired the legendary 4036 Telegraph Road, Ste 203 Bloomfield Hills, MI 48302 248-593-7850 www.forumgroupllc.com In recent model years, advanced former Ford steel mill, later Rouge high-strength steels account for ap- Steel, for $285 million in 2004. proximately 175 pounds of material The company made several ac- per vehicle, according to a recent quisitions of U.S. steel plants total- study by Ducker Worldwide. The Troy- ing $2.7 billion in transactions over based research and advisory firm the next few years, increasing pro- predicts the use of these steels will duction capacity from 2.5 million double by 2020 and triple by 2025. tons in Dearborn to 11.4 million Mike Wall, director of automo- tons of capacity across the U.S. tive analysis for Northville-based But by 2010, the industry col- research firm IHS Automotive Inc., lapse caught up and Severstal said while “lightweighting” is all shifted to divesting, shedding the the rage for automakers, cost re- now-bankrupt Sparrows Point mains an issue for other materials, plant in Maryland, along with like aluminum and magnesium. plants in West Virginia, Ohio and “Every automaker is targeting New York. The $1.2 billion divesti- mass reduction, and that means ture reduced the steelmaker’s more aluminum and magnesium, overhead — dropping 8,000 em- but that doesn’t mean the death ployees, down to 2,000 — and al- knell of steel,” Wall said. “Steel lowed it to shed 7.3 million tons of still is a very solid, cost-effective capacity. solution, and as they continue to The downturn came at a cost, develop lighter weights, it be- dropping Severstal NA’s revenue comes more attractive.” to $3.4 billion in 2011 from $8.2 bil- Severstal confirmed its Dear- lion in 2008. born plant is currently operating But the divestitures allowed at full capacity. Severstal to modernize its decay- Chicago-based ArcelorMittal, ing Dearborn plant and build a which operates an automotive cen- new $1.5 billion mill in Columbus, ter in Southfield, also makes cer- Miss. tain grades of high-strength steels Severstal poured in $1.4 billion at its plant in Ohio. But Mary Beth to upgrade the Dearborn plant — Holdford, external communications where some equipment was re- manager, declined to comment. portedly 150 years old. Severstal NA wanted even Kuznetsov now says the steel- lighter-weight advanced-strength maker is in a position to capitalize steel production in the U.S. as the on its streamlining. auto market continues to recover, “Last year, we optimized our as- but in January, the U.S. Department set portfolio (and) completed the of Energy denied a $730 million loan major modernization programs at to build a two-mile-long line pro- both Dearborn and Columbus, cessing third-generation advanced Miss., plants that give us a strong high-strength steel. foundation for success,” he said. The line was designed to make “While pricing in the U.S. has de- even stronger grades than the mill clined over the last couple of currently can make. months, we think we are the bot- Sergei Kuznetsov, CEO of Sever- tom of the mini-cycle; inventory stal NA, said the steelmaker is the levels are low while demand is still victim of lobbying. Three con- solid.” gressmen began lobbying against Dustin Walsh: (313) 446-6042, the loan in November 2011, asking [email protected]. Twitter: U.S. Energy Secretary Steven Chu @dustinpwalsh 20120702-NEWS--0012-NAT-CCI-CD_-- 6/29/2012 9:41 AM Page 1
Page 12 CRAIN’S DETROIT BUSINESS July 2, 2012
CRAIN'S LIST: LARGEST OEM PARTS SUPPLIERS Ranked by 2011 automotive original equipment parts sales
Company OEM sales OEM sales Address ($000,000) ($000,000) Percent Rank Phone; website Top local executive 2011 2010 change Products Johnson Controls - Automotive Experience Beda Bolzenius $20,100.0 $16,600.0 21.1% Seating systems, electronics, interiors 1. 49200 Halyard Drive, Plymouth 48170 president (734) 254-5000; www.johnsoncontrols.com TRW Automotive Holdings Corp. John Plant 16,244.0 14,400.0 12.8 Vehicle control and driver-assist systems, braking, steering, suspension and 2. 12001 Tech Center Drive, Livonia 48150 chairman, president and CEO occupant safety, electronics, engine components, body control and fastening (734) 855-2600; www.trwauto.com systems Delphi Automotive plc Rodney O'Neal 16,041.0 13,817.0 16.1 Electronics, transportation components, integrated systems 3. 5725 Delphi Drive, Troy 48098 president and CEO (248) 813-2000; www.delphi.com Lear Corp. Matthew Simoncini 14,156.5 11,954.6 18.4 Seating and electrical power management systems 4. 21557 Telegraph Road, Southfield 48033 president and CEO (248) 447-1500; www.lear.com Visteon Corp. Donald Stebbins 8,047.0 7,320.0 9.9 Climate, electronics, interiors, lighting 5. 1 Village Center Drive, Van Buren Township 48111 chairman, president and CEO (734) 710-5000; www.visteon.com BorgWarner Inc. Timothy Manganello 7,114.7 5,652.8 25.9 Engine and drivetrain systems and components 6. 3850 Hamlin Road, Auburn Hills 48326 chairman and CEO (248) 754-9200; www.borgwarner.com Continental Automotive Systems US Inc. Samir Salman 5,799.0 B 4,716.0 B 23.0 Tires, stability-management systems, electronic chassis systems, brake systems 7. 1 Continental Drive, Auburn Hills 48326 CEO, Continental North America (248) 393-5300; www.conti-online.com Robert Bosch LLC Mike Mansuetti 5,565.0 4,839.0 15.0 Gasoline and diesel systems, chassis systems and controls, steering systems, 8. 38000 Hills Tech Drive, Farmington Hills 48331 president electrical drives, starters and generators, car multimedia, electronics, battery (248) 876-1000; www.boschusa.com technology, exhaust gas turbochargers and treatment systems Denso International America Inc. Hikaru "Howard" Sugi 5,464.0 C 5,742.0 C -4.8 Thermal, powertrain controls, electronic and electric systems, small motors, small 9. 24777 Denso Drive, P.O. Box 5047, Southfield 48086 president and CEO motor telecommunications (248) 350-7500; www.densocorp-na.com Faurecia North America Michael Heneka 4,800.0 3,280.0 B 46.3 Automotive seating, emissions control technologies, interior systems, automotive 10. 2500 Executive Hills Blvd., Auburn Hills 48326 president, North America exteriors (248) 409-3500; www.faurecia.com GKN Driveline North America Inc. D Max Owen 4,745.0 C 3,650.0 B 30.0 Constant velocity joints, all-wheel drive, eDrive systems, transaxle parts 11. 3300 University Drive, Auburn Hills 48326 managing director, Americas (248) 377-1200; www.gknplc.com Federal-Mogul Corp. Rainer Jueckstock 4,600.0 3,892.0 18.2 Bearings, pistons, piston rings, sealing systems, systems protection products, 12. 26555 Northwestern Highway, Southfield 48033 CEO friction, lighting, wiper and fuel products (248) 354-7700; www.federalmogul.com IAC Group James Kamsickas 4,400.0 3,700.0 18.9 Instrument panels, cockpits, door panels, headliners, flooring, acoustic systems, 13. 28333 Telegraph Road, Southfield 48075 president and CEO exterior components (248) 455-7000; www.iacgroup.com Mobis North America Ho-seok Jeon 3,811.0 B 2,742.0 B 39.0 Chassis, cockpit and front-end modules; ABS, ESC, MDPS, ASV parts, LED lamps, 14. 23255 Commerce Drive, Farmington Hills 48335 president and CEO sensors, electronic control systems, airbags, hybrid car powertrains, parts and (248) 426-5577; www.mobis.co.kr power control units Aisin World Corp. of America Masayasu "Mike" Saito 3,298.0 3,027.0 9.0 Body, brake and chassis systems, electronics, drivetrain, and engine components 15. 46501 Commerce Center Drive, Plymouth 48170 president and CEO (734) 453-5551; www.aisinworld.com Yazaki North America Inc. Masashi "Max" Yamashita 3,048.0 2,620.0 16.3 Connection systems, electrical distribution systems, electronic components, 16. 6801 Haggerty Road, Canton Township 48187 chairman instrumentation (734) 983-1000; www.yazaki-na.com TI Automotive Ltd. Bill Kozyra 3,000.0 2,500.0 20.0 Automotive fluid storage, carrying and delivery technology 17. 1272 Doris Road, Auburn Hills 48326 chairman, president and CEO (248) 494-5000; www.tiautomotive.com Cooper-Standard Holdings Inc. James McElya 2,845.0 2,414.0 17.9 Body sealing, fuel, brake and emissions, thermal management and anti-vibration 18. 39550 Orchard Hill Place Drive, Novi 48375 chairman and CEO systems (248) 596-5900; www.cooperstandard.com Inteva Products LLC Lon Offenbacher 2,800.0 E 1,200.0 133.3 Closure systems, interior systems, motors and electronics, roof systems 19. 1401 Crooks Road, Troy 48084 president and CEO (248) 655-8886; www.intevaproducts.com ZF Group NAO Julio Caspari 2,679.0 B 1,821.0 B 47.1 Transmissions, steering systems, suspension components, axles, clutches, dampers 20. 15811 Centennial Drive, Northville 48168 president (734) 416-6200; www.zf.com American Axle & Manufacturing Holdings Inc. Richard Dauch 2,585.0 2,280.0 13.4 Driveline and drivetrain systems, axles, driveline modules 21. One Dauch Drive, Detroit 48211 co-founder, chairman and CEO (313) 758-2000; www.aam.com Autoliv Americas Group Steve Fredin 2,419.0 2,054.0 C 17.8 Airbags, inflators, seat belts, electronics, steering wheels 22. 1320 Pacific Drive, Auburn Hills 48326 president (248) 475-9000; www.autoliv.com Tower International Inc. Mark Malcolm 2,406.1 1,997.1 20.5 Structural components, assemblies and suspension modules 23. 17672 N. Laurel Park Drive, Suite 400E, Livonia 48152 president and CEO (248) 675-6000; www.towerinternational.com CalsonicKansei North America Inc. Seiichi Kakizawa 2,074.0 B 1,492.0 B 39.0 Climate control, engine cooling and exhaust systems, instrument clusters, console 24. 27000 Hills Tech Court, Farmington Hills 48331 president boxes, cockpit modules (248) 848-4800; www.calsonic.com Benteler Automotive Corp. Doug Owenby 2,000.0 B 1,896.8 B 5.4 Chassis systems, engine and exhaust products, body structure products 25. 1780 Pond Run, Auburn Hills 48326 president (248) 377-9999; www.benteler.com
This list of automotive suppliers is an approximate compilation. For companies based in Detroit and divisions of U.S.-based companies in Detroit, figure is for worldwide OEM sales. For divisions of foreign-owned companies, figure is for North American OEM 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 From Automotive News. C Automotive News estimate. D Includes GKN Sinter Metals sales. In 2011, GKN Driveline reorganized its divisions to include GKN Sinter Metals. E Inteva Products LLC acquired ArvinMeritor's light vehicle body systems in January 2011. LIST RESEARCHED BY BRIANNA REILLY DBpageAD.qxp 6/25/2012 3:25 PM Page 1
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© 2012 Baker Tilly Virchow Krause, LLP. Baker Tilly refers to Baker Tilly Virchow Krause, LLP, an independently owned and managed member of Baker Tilly International. 20120702-NEWS--0014-NAT-CCI-CD_-- 6/29/2012 11:35 AM Page 1
Page 14 CRAIN’S DETROIT BUSINESS July 2, 2012
REPORTER’S NOTEBOOK
Daniel Duggan is deputy managing editor of Crain’s Detroit Business. Call (313) 446-0414 or write dduggan @crain.com. Real Estate Daniel Duggan GM gets insider help to sell sites Structural damage In most of the cities where former General Motors Corp. plants are located, the task of finding new uses for the buildings is a major economic development project. Despite leaving a trail of building foreclosures, So in order to sell or repurpose the 66 buildings it has across the country, the RACER Trust has brought a city Northern Group seems to have made a profit official onto its team. The Ypsilanti-based entity has BY DANIEL DUGGAN “We believe in Detroit but got also reviewed at the register of hired Steve Black, a former deputy CRAIN’S DETROIT BUSINESS caught in the national recession deeds and through past Crain’s DEALS, LOANS, LOSSES city manager for Bay City, as a that was more stories and press releases. transaction manager. Black has been he goal was to buy low and like a depres- Cadillac in economic development in Bay City, sell high for the Northern sion in Michi- Saginaw and Bridgeport Township T Group. The New York in- gan,” he said High hopes Tower over the years. vestors spent much of the 2000s in an emailed In the days of big deals and Ⅲ Paid: “He understands the economic buying some of Detroit’s best- response. easy money early in the 2000s, $15.4 million incentives and knows how to work known buildings, betting on a “The financial Dembitzer came to Detroit with in 2003 with the government entities,” said spike in property values. collapse of the idea of buying buildings at Ⅲ Borrowed: Bruce Rasher, redevelopment But the market didn’t jump as 2008-2009 hit bargain prices, fixing them up $17.5 million manager for the trust. expected, and Northern saw its us with a larg- and reselling as values rose. in 2005 But hiring Black also is related to holdings go into foreclosure as it er force than The endeavor started with the Ⅲ Bank sale: Dembitzer an increase in people looking at the left Detroit with nearly $95 mil- anyone could Cadillac Tower in 2003. Demb- $5.5 million unsold properties. lion in unpaid loans. have expected.” itzer and Fried purchased the “There is a lot more formal interest Even so, it seems Northern He declined to answer more Penobscot Building and First Na- than we saw last year,” Rasher said. principal Alex Dembitzer and questions about the buildings. tional Building in 2005. They First National “We have letters of intent for his mother, Jacqueline Fried, The value of the loans was bought the residential Alden properties — a clear sign of more made a profit. compiled by reviewing public Park Tower in 2005 and Lafayette Building activity.” That’s because four of the five documents available through the Towers buildings in 2008. Ⅲ Paid: $15 The Revitalizing Auto Communities buildings were financed for more Wayne County Register of Deeds, in They also pitched the idea of a million in 2005 Environmental Response Trust was than Northern paid for them — a addition to services that track development on Campus Martius Ⅲ Borrowed: created after the GM bankruptcy in marker of loose lending stan- loans, such as New York-based to bring retail and restaurants to $15 million in 2009. It was given $770 million to be dards before the recession. Trepp LLC. Property records were land near Cadillac Tower. 2006 used for cleaning up the mostly In the end, the value of the “We believe in the future of Ⅲ Bank sale: unwanted properties across the loans was $25.7 million more Detroit,” said Dembitzer in a $8.1 million country. than the purchase prices, a fig- 2008 press release. The initial 89 buildings and 44 ure that became apparent as It was a different story by 2009. million square feet left with RACER the loans were closed out and The mixed-use development Penobscot proved to be a massive collection, to the properties sold. The fifth — stalled. The group stopped mak- say the least. and final — foreclosure process ing payments on many of its Building For some perspective, it would be is set to start soon on the loans as well as payments to Ⅲ Paid: $19 the third-largest real estate Lafayette Towers, which would contractors for work done on million in investment trust in the country if it mark the end of the Northern the buildings, according to 2005 were on the New York Stock Group’s presence in Detroit. liens and civil suits. Ⅲ Borrowed: Exchange. New buyers have taken over And the condition of the $25 million in Over the past three years, the team the First National Building, buildings prompted more 2007 has winnowed the 89 properties down Cadillac Tower and Penob- controversy as law firm Ⅲ Bank sale: to 66. scot Building, with Honigman Miller Schwartz $5 million Among recent deals, the trust sold Alden Park for sale. and Cohn LLP filed a law- the Fiero Powerhouse part of the Dembitzer said the suit to get out of its former Fisher Body Plant to DTE economic condi- lease in the First Na- Energy Co. through a ground lease in tions in 2008 and tional, claiming the April. The trust retains ownership of 2009 marked conditions were so the 14 acres of land at the site, which the end. poor that the attor- is near the larger GM Pontiac North neys were unable to Campus off Baldwin Road in Pontiac. practice law. Also, Pontiac-based Lee Contracting Inc. purchased the See Northern 32,000-square-foot former GM facility Group, Page 15 across the street from its headquarters at 675 Oakland Ave. in November. Alden Park Tower A large parcel of land in Pontiac Ⅲ Paid: $4.2 million in 2005 now sits where three former Ⅲ Borrowed: $15 million in 2007 manufacturing facilities once stood. Ⅲ Bank sale has not yet occurred A. Alfred Taubman, founder of Bloomfield Hills-based Taubman Centers Inc.; John Rakolta, CEO of Lafayette Towers Detroit-based Walbridge Aldinger Co.; and Linden Nelson, CEO of Raleigh Ⅲ Paid: $16 million in 2008 Michigan Studios, bought the former Ⅲ Borrowed: $22.8 million in factories in Pontiac. They’ve razed the 2009 properties and are marketing the land Ⅲ Foreclosure pending to potential developers. Sources: Property records, Bloomberg, But work remains: Rasher said Trepp LLC, CoStar Group Inc., Real Capital about 50 properties are left to sell in Analytics and Crain’s research Michigan. Photos: CoStar Group
ANDREW TEMPLETON/CRAIN’S DETROIT BUSINESS 20120702-NEWS--0015-NAT-CCI-CD_-- 6/29/2012 11:36 AM Page 1
July 2, 2012 CRAIN’S DETROIT BUSINESS Page 15 Focus: Real Estate Northern Group: Investors leave unpaid loans in their wake ■ From Page 14 Banks lost big Non-recourse loans, common in name attached to it, and then for $15 million in 2007, according In the end, Eastpointe-based the early and mid-2000s, have only transferred to Zulu 117 LLC. to property records. Michielutti Bros. Inc. and Shelby It became clear by 2010 that the the buildings as collateral and the Penobscot was owned by PBDM Cadillac Tower was bought for Township-based E. Gilbert & Sons loan payments would not be made, personal assets of the owners are LLC, an entity owned by PBDM Owner $15.4 million in 2003 and then fi- Inc. were paid, but many were not, and lenders started taking the build- usually not at stake. However, in LLC, both incorporated out of state. nanced for $17.5 million in 2005. said Randall Chioini, an attorney ings back — but the current values some cases those assets could be All of the buildings were, at dif- That those deals were done ex- with Mt. Clemens-based Chioini Sar- are drastically less than the loans. pursued, in particular if it can be ferent times, on Northern Group posed a lack of checks and balances nacki Reynolds Doherty & Piatt. The total of all defaulted loans is shown that money for an LLC was websites, talked about by Demb- in the lending community leading “It was like they had a formula,” $95.3 million, according to infor- comingled with personal assets. itzer publicly as an owner, and for- up to the real estate crash, said Den- he said. “They’d say they were going mation from the Wayne County On Alden Park, attorneys spent mer employees involved with the nis Bernard, president of Southfield- to pay, then they’d put up roadblock Register of Deeds. Two buildings almost a year trying to link Demb- buildings have said he and Fried based Bernard Financial Group. after roadblock. They’d say the con- have yet to be sold, but the three itzer and Fried personally to the were the primary owners. Howev- “The value of the loans was being tract is invalid, or that someone that have been sold netted only limited liability corporations cre- er, the true number of investors created by the competition among signed it who wasn’t authorized.” $18.6 million. ated to own the tower. has not been publicly disclosed. lenders to get money out,” he said. Exact losses are not known be- The loan was taken out by Alden “It was lending competition that cause there are no records to show Park LLC, registered in Delaware, drove up the value of buildings, and Looking forward how much in payments were and in that state it was registered Pay cash, then finance that should not have happened.” As the buildings are sold, new made, but the gap between the ini- to another corporate entity, North- In fact, little has ever been dis- Bernard said he was approached owners are taking over, notably tial loan value and the sale price of ern Group, based in New York. closed by owners of the Northern by Dembitzer about financing the the First National, which Quicken the buildings so far has been large. “We did a ton of legwork and Group buildings about the deals. Penobscot and First National. Loans Inc. founder Dan Gilbert pur- That gap was $6.9 million for found dead end after dead end,” However, the pattern of cash pur- “We passed on those deals,” chased in 2011 and is renovating. Pittsburgh-based PNC Bank on the said the attorney, who asked not to chases followed by large loans is Bernard said. “We could never get New owners are becoming im- First National Building, $12 mil- be named because she did not have what emerges from the public docu- a clear understanding of the true portant parts of downtown, said lion for Miami Beach-based LNR permission from her client to ments tied to the buildings. In four value of their investment.” George Jackson, president of the Property Corp. on the Cadillac Tow- speak publicly. “Money was trans- cases, the loans were significantly Detroit Economic Growth Corp. er and $20 million for Horsham, ferred from one place to another, higher than the purchase price. He balances the positive impact Pa.-based Capmark Financial Group to another and ended up in Israel. Lafayette Towers, for example, Unpaid services of new owners against the negative on the Penobscot. There wasn’t much we could do.” was purchased in cash, in 2008, for In many cases, piles of unpaid impact of banks taking big losses. That trend is expected to contin- The deal is representative of the $16 million. Within a year, the fees for contractors are left behind. “It’s a concern to see anyone have ue as the Alden Park property is be- ownership structures. Dembitzer building was appraised and under- A 2009 review of liens and civil a bitter taste in their mouth after ing sold to recapture a portion of a and Fried’s names appear on few written for the $22.8 million loan court filings in Wayne County Cir- deals in the city,” Jackson said. $15 million loan and a foreclosure is documents, with the buildings all by Prudential Mortgage Capital Co. cuit Court by Crain’s found that “But we move forward. There’s set to start for Lafayette Towers un- owned by limited liability corpora- The loan has been transferred to $2.2 million in unpaid bills had a lot of new deals, and we can’t der a defaulted $22.8 million loan. tions incorporated in other states. the U.S. Department of Housing and piled up for contractors that did complain about the direction Worse news for the lenders is In some cases, they are elabo- Urban Development, which will han- work on the five buildings. Many of we’re going in now.” that they’ve been unable to pursue rate. Lafayette Tower, for exam- dle the foreclosure. the liens were against the First Na- Daniel Duggan: (313) 446-0414, Dembitzer personally because the ple, was purchased by Zulu Inc., in- Alden Park was bought for $4.2 tional Building, where two of the [email protected]. Twitter: loans were non-recourse. corporated in Delaware with no million in 2005 and then financed contractors took the case to court. @d_duggan
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Services provided at the discretion of Bright House Networks. 20120702-NEWS--0016-NAT-CCI-CD_-- 6/29/2012 10:38 AM Page 1 Page 16 CRAIN’S DETROIT BUSINESS July 2, 2012 PEOPLE FINANCE IN THE SPOTLIGHT Matthew Roy to vice president of hu- man resources and administration, People Plus Management Services Group LLC, Troy, Mercedes-Benz Financial Services has named John Chidiac its first COO. USA LLC, Farmington Hills, from vice Chidiac had been chief commercial officer for president, general counsel and corpo- rate secretary. Also, Michelle Spre- GlobalCom, Beirut, Lebanon. itzer to vice presi- Chidiac, 44, earned a Bachelor of Arts degree in dent, general international relations from the University of counsel and cor- Michigan. porate secretary, People Plus provides human resource services, from assistant including payroll, benefits and employee programs. general counsel. Chidiac Rachel Allen to manager, tax practice, Grant Thornton LLP, Southfield, from domestic tax con- troller, Ford Mo- Spreitzer tor Co., Dearborn. HEALTH CARE Wayne Mattern to director of surgi- cal services, Gar- den City Hospital, from manager of surgical services, Oakwood Hospi- tal & Medical Cen- ter, Dearborn. Deana Simpson to chief clinical transformation of- Mattern ficer, St. John Prov- idence Health System, Warren, from corporate director of clinical transfor- mation, Detroit Medical Center. INFORMATION TECHNOLOGY Jack Szczepaniuk to business develop- ment manager, Saphran Inc., Franklin, from global marketing and sales analyst, light vehicle systems group, ArvinMeritor Inc., Detroit. LAW Clark Doughty to general counsel, Ox- ford Companies LLC, Ann Arbor, from partner, Bodman PLC, Detroit. MARKETING Elizabeth Robbins-Sabourin to direc- tor, health care practice, Lambert Ed- wards & Associates Inc., Detroit, from public relations and marketing man- ager, Gas Station TV, Birmingham. NONPROFITS The Rev. Kenneth Erickson to rector, St. James Episcopal Church, Birming- ham, from priest. SUPPLIERS Robert Adams Jr. to engineering man- ager and chief engineer, Serapid Inc., Sterling Heights, from founder, presi- dent and chief technical officer, Tribis Engineering Inc., Shelby Township. Did yyouou know?know? Chris Villavarayan to vice president, global manufacturing and supply Commercial lending dates back to around 2000 B.C. chain management, commercial truck, Meritor Inc., Troy, from Meritor man- aging director, India. Also, Tim Burns ® to vice president and general manager, defense and specialty, industrial, from TCF Bank has loaned over $1 billion to businesses vice president, global defense; and Mikel Slater to vice president, business unit-functional human resources and in Southeast Michigan. talent acquisition, from senior direc- tor, global human resources. ® Did you know that TCF Bank : PEOPLE GUIDELINES s Initiates commercial loan relationships starting from $1 million? Announcements are limited to s Offers operating and capital leases starting at $50,000? management positions. Please email your submissions to s Commercial loans and leases represent over 50% of earning assets? [email protected] or mail to Departments, Crain’s Detroit Business, 1155 Gratiot Ave., Detroit, MI 48207-2997. Include To learn more, contact: the person’s name, new title, company, city in which the person Guy Rau at 734-542-2774 (Commercial Loans) or will work, former title, former Walt Dzielsky at 734-953-8541 (Leasing) company (if not promoted from within) and former city in which the person worked. Photos are welcome, but we cannot guarantee their use. Questions: (313) 446- ©2012 TCF National Bank. Member FDIC. www.tcfbank.com 0419. 20120702-NEWS--0017-NAT-CCI-CD_-- 6/29/2012 4:46 PM Page 1 July 2, 2012 CRAIN’S DETROIT BUSINESS Page 17 More troopers to add bulk MARKET REAL ESTATE PLACE INDUSTRIAL PROPERTY OFFICE BUILDING FINANCIAL SERVICES to Detroit police patrols Romulus Warehouse Exquisite Loft Offices Detroit IVY PRIVATE CAPITAL 5,750SF-28,750SF For Sale $189,000 BY NANCY KAFFER the Michigan State Police now — 800-717-TEAM (8326) 1 Truck Well & 1 Drive-In Door CRAIN’S DETROIT BUSINESS the regionalization plan. 4,733 S.F., 14’ Wood Ceilings “We’re able to deploy resources FORECLOSURE Per 5,750SF. Wired for Voice and Data Starting this month, more Michi- on a regional level as opposed to a BAILOUT Call 248-821-5522 Off street Parking w/Remote Access gan State Police troopers will be as- small jurisdiction. So if Pontiac’s • Commercial www.1157concordave.com signed to supplement Detroit Police having trouble, we can assist • Residential Department work in city precincts. them. If they get their numbers MISCELLANEOUS • 8-10% fixed interest rates Eventually, as many as 50 troop- down, we may not necessarily ers will patrol the city, said Capt. • 30-day closing leave Pontiac, but we’ll get the • Poor credit OK Monica Yesh, commander of the footprint down. It’s not going to FOR SALE! MSP’s second district. • Foreclosure OK Building 10 mile & Grosebeck be something where we stay in • Bankruptcy OK Call Two squads, or 12 troopers and 7,200 SQFT. in Very good Call the city of Detroit or Pontiac for- two sergeants, will begin working in ever.” 251 E. Merrill Street Suite 203 condition $140,000 the city’s northwestern districts y Birmingham MI. 48009 y Yesh emphasized that MSP ef- Pine Knob Area July 8, Yesh said, to assist the police forts will supplement Detroit Police [email protected] oda 1.5 acres lots Beautiful Hillie & toda department and the Combined Vio- t Department work, and noted that www.ivyprivatecapital.com lence Reduction Partnership, a joint Winding roads $75,000. the state police will be guided by for a custom advertising effort with the Bureau of Alcohol, To- DPD Chief Ralph Godbee’s strategy. Bill McMachen (586) 915-4441 TRAVEL SERVICES bacco, Firearms and Explosives. She also noted that troopers are sen- [email protected] program • 313.446.6068 Later this year, two squads will sitive to cultural differences be- HAWKER JET CHARTER for the price of a Citation. be assigned to the eastern district, tween out-state and urban policing. Flight crew with 14,000 hours and 50 years of she said. That deployment is await- experience. Call 248-886-8860. 135 # K1EA876K. “What we’ve learned from Flint Based at PTK. AUCTIONS ing the graduation of troopers. is we need to be aware of cultural MSP resources include heli- changes, cultural differences,” she BUSINESSES FOR SALE copter patrols, which already have said. Absolute Luxury Auction assisted Detroit police officers The deployments will benefit Multi-Franchise Motorsports Dealership For Sale. &+FĎFSTPO"WFr(SPTTF1PJOUF1BSL .* with weekend pursuits. Located in Southeastern Michigan. Serious Inquiries businesses and residents, Yesh said. Only. For more info, contact us by email at “We’re not here for a ticket-writ- “There are several challenges I [email protected] Reference # box 10057 ing campaign,” Yesh said. “We’re have faced and overcome while in subject line. here to make the streets safer for growing my business in Detroit, those who live here and visit here.” but the one consistent problem State police have been working that still plagues Canine to Five The Crain’s reader: in Saginaw since 2007, and are also every day is public safety,” said 26.5% influence the patrolling in Flint and Pontiac. Liz Blondy, owner of the Detroit- purchase of office/industrial “Gov. 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