Bankrupt Borders Says Bids Coming In

20110606-NEWS--0001-NAT-CCI-CD_-- 6/3/2011 7:10 PM Page 1

This issue in two sections (Section 1) Vol. 27, No. 23 JUNE 6 – 12, 2011 $2 a copy; $59 a year

Page 3 Shaky signs from market ALEC AND TOM GORES:DEALMAKING IN DETROIT may delay Delphi IPO plans Bankrupt Borders says bids coming in

Soaking up the sun helps Reports: Investor Alec Gores in the mix

finance Royal Oak project BY DANIEL DUGGAN Alec Gores, brother of new Detroit Pistons CRAIN’S DETROIT BUSINESS owner Tom Gores, is among the investors reportedly interested in a portion of the book- Inside While a New York bankruptcy judge gave seller. A call placed to Alec’s office was not re- Borders Group Inc. until Oc- turned Friday, nor has he issued comments to tober to craft a restructur- other media outlets. S3’s ing plan, the company TWO OF A KIND Borders attorneys said in court last week might not need it. Gores brothers: that there are “multiple” bidders for the com- ‘inshoring’ Despite the Ann Arbor- Steeped in pany, but they would not disclose the names. based company’s bleeding dealmaking, The deal brokering comes as rival Barnes & creates Page 18 COURTESY OF SITRICK AND CO. INC. balance sheets two months Noble Inc. is in a bidding war between two bil- hundreds of A source says private equity investor Alec Gores, into bankruptcy, offers are lionaires. brother of Detroit Pistons owner Tom Gores, is swirling for the company. An attorney in the case jobs ahead of bidding for roughly half of Borders’ 405 stores. says a deal may happen in two to four weeks. See Borders, Page 18 schedule, Page 12 Street vendors find Detroit ‘Shocking’ bargain: Gores pays $325M for Pistons food rules unappetizing, BY BILL SHEA management company. The sale price Tom Gores Page 17 CRAIN’S DETROIT BUSINESS from the deal, which closed Wednesday, said he has was confirmed by a source with direct no plans to spin off Tom Gores made his billions by identi- knowledge of the deal. anything This Just In fying companies he could buy cheaply, fix One insider familiar with pro sports and spin off for a tidy profit. from his franchise sales, who spoke on the condi- purchase of Insiders say he used his acumen at tion of anonymity, was flabbergasted at the Pistons Collaboration tops spotting a good deal to get the Detroit Pis- what Gores paid to assume majority own- and Palace chamber’s to-do list tons and Palace Sports & Entertainment Inc. ership from Karen Davidson. Sports & for a price far below what they expected: “That is a shocking price,” he said. “If Entertain- Improving collaboration $325 million. he got the team and the real estate (for ment Inc. between East and West Michi- That’s for both the National Basketball gan businesses and key insti- Association franchise and the umbrella See Pistons, Page 19 tutions tops a to-do list for the BILL SHEA/CRAIN’S DETROIT BUSINESS Detroit Regional Chamber. The list, released Friday at the close of the chamber’s Mackinac Policy Conference on Mackinac Island, contains goals for the chamber to ac- Power of positive pushing: The ‘Snyder effect’ at Mackinac complish over the next year. They include: BY AMY LANE ous governors, was omnipresent Ⅲ Incorporating leading AND NANCY KAFFER during the conference, making SHEDDING LIGHT ON REMAKING MICHIGAN and promising industry clus- CRAIN’S DETROIT BUSINESS four stage appearances during ters into regional economic which he was Michigan is fighting to remake itself into a hub for development strategy. MACKINAC ISLAND — After a both consistent- innovation and job creation. Ⅲ Working with Harvard couple of years when the atmos- ly positive about That awareness shaped the 2011 Detroit Business School Professor phere at the Mackinac Policy Confer- the future and Regional Chamber Mackinac Policy Conference. Executives mostly applauded ence was more subdued than other- resolutely on- Michael Porter, who ap- Gov. Rick Snyder’s way of tackling the peared at a conference ses- wise, the tone at this year’s event message with issues. And the conference’s tone was sion, to convene Great Lakes was decidedly upbeat. low-key but me- noticeably upbeat. Call it the Snyder effect. thodical and re- See This Just In, Page 2 Coverage of the conference continues on Gov. Rick Snyder, unlike previ- lentless requests Page M1 (following Page 12), including news for support for of a new “buy Michigan” initiative for the measures he business, and a primer on economic clusters. Snyder says are needed Also featured: to make Michigan competitive. Ⅲ Innovations: Advanced Manufacturing — Thriving “Solve a problem and just move companies from the automotive sector and beyond, on to the next problem and keep Page M17 going. And that’s critical to our fu- Ⅲ Focus: Business Education — Debating tenure ture,” Snyder said in a Friday at the university level, Page M31 morning address. NEWSPAPER See Mackinac, Page 21 20110606-NEWS--0002-NAT-CCI-CD_-- 6/3/2011 7:02 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS June 6, 2011

will complete a move from its 32- that combine private capital with Wayne State executive ber CEO. THIS JUST IN year home at the Renaissance funds from the U.S. Small Business Schlichting, 56, is CEO of Henry Center to the Southfield Town Administration. adds chief of staff to title Ford Health System. She also was ■ Center by early September, its lo- Sam Munaco, president of Ad- appointed to the board of the Amer- From Page 1 Wayne State University’s Michael cal managing partner confirmed vocate Commercial Real Estate ican Hospital Association this year. Wright, vice president of market- governors to develop a Great Friday. — Jay Greene Advisors of Michigan LLC in South- ing and communications, is also Lakes “super region” strategy. The law firm, a mainstay at the field, advised Pepper Hamilton now the chief of staff for universi- Ⅲ Chamber President and CEO RenCen with 34,750 square feet on in the lease deal. CB Richard Ellis ty President Allan Gilmour. Sandy Baruah said Porter offered two floors of Tower 100, will start Snyder plans East Asia trip in Southfield represented The Wright joined WSU in 2007 as that, if the Great Lakes governors relocating its 60 Detroit employ- Blackstone Group LP, the real es- an associate vice president and Gov. Rick Snyder is planning to wanted to get together for a ees to about 22,000 of space in the tate private equity and invest- was promoted to vice president go to Japan this fall in a trade and strategic session on finding com- 4000 Town Center building in late ment firm that owns the Town last year. relationship-building trip that mon issues and mapping a strate- August, Thomas Wilczak said. Center. Before WSU, he was a senior could also include stops in South gy to work collaboratively, “he “One of the things that’s hap- — Chad Halcom vice president and group account Korea and China. would be happy to come back, pening in the profession is office and Daniel Duggan director at ad agency Leo Burnett The Michigan Economic Develop- and do that gratis.” space needs just aren’t what they Detroit. He’s also held positions in ment Corp. is putting together a Ⅲ Convene institutions and used to be,” he said of the move. marketing and communications work group to build the itinerary, leaders to drive “Outsource to De- “Your professional space is gen- Office managing partner named at General Motors Co. and Ford Mo- plans and schedule for the trip, troit.” That’s a reference to an ef- erally smaller, and ... shrinking which is being eyed for late Sep- fort by health care IT company our space here wasn’t actually for Baker Tilly’s Michigan region tor Co. Wright earned a bachelor’s in tember or early October. GalaxE Solutions Inc., which sees quite as cost-effective as finding a Snyder made mention of the Alan Whitman has been named business administration from the potential for downtown De- new smaller space somewhere trip on Friday at the Detroit Re- the new office managing partner Eastern Michigan University and an troit to be an IT hub and an alter- else.” gional Chamber’s Mackinac Policy for the Michigan region of Baker MBA from University of Michigan. native to work going offshore. Pepper Hamilton, with an esti- Conference. Tilly. He joined the firm in 2003 — Dustin Walsh Ⅲ Convene business, labor and mated $313.5 million in 2010 rev- — Amy Lane educational leaders to develop enue, has 21 attorneys and five and had been firm-wide leader of and document the benefits of do- paralegals in Detroit, compared international services. Schlichting to head Mackinac ing business in a globally compet- with 29 local attorneys in Janu- Whitman replaces Craig Nelson, CORRECTION itive Michigan. ary 2008 and 38 in the 1990s, ac- who came to the Southfield office Nancy Ⅲ Establish a mentorship ini- cording to past data furnished to from the firm’s Madison, Wis., Schlichting ■ An incor- tiative that engages past gradu- Crain’s. The firm cleared out headquarters in 2006. Nelson was named rect photo of ates of the chamber’s Leadership from space it had occupied on a transferred back to Madison, his first vice Michael Detroit program. third floor in the RenCen several hometown. chair of the Psarouthakis Ⅲ To-be-determined steps in- months ago. Baker Tilly, which has a staff board of the appeared volving education. The Detroit lawyers specialize of more than 1,350, is the 16th Detroit Region- with a Calen- — Amy Lane in corporate law, bankruptcy and largest accounting and consult- al Chamber and dar item on reorganization, and labor rela- ing firm in the country, with oth- will be in Page 16 in to- tions. They also head up the com- er offices in Chicago, Minneapo- charge of the Psarouthakis day’s issue, Pepper Hamilton leaving RenCen lis, New York, Washington and Mackinac Poli- pany’s national practice repre- Schlichting which was The Detroit offices of Philadel- senting small business Wisconsin. cy Conference printed in advance. The correct phia-based Pepper Hamilton LLP investment companies, funds — Tom Henderson in 2012, said Sandy Baruah, cham- photo appears here.

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June 6, 2011 CRAIN’S DETROIT BUSINESS Page 3 Market lull may Inside CEO Paul Glantz says the array of solar panels atop Emagine Entertainment’s new Royal Oak theater can crank out 40 kilowatts a day — enough to power six homes. delay Delphi IPO

BY DUSTIN WALSH macro environment has become CRAIN’S DETROIT BUSINESS more challenged over the past couple weeks.” Delphi Automotive LLP’s initial U.S. auto sales in May missed an- public offering may not happen for alyst projections, moving the sea- some time as economic indicators sonally adjusted rate down 3.9 per- from May hint at an industry slow- cent to 11.8 million from 13.1 million down. cars in April. Troy-based Delphi The Institute for Staffing biz goes from zero announced that it The macro Supply Management’s to $89M in 10 years, Page 10 registered for an IPO “ May manufacturing last month with environment has index showed that hopes of rais- U.S. manufacturing ing $1 billion. become is growing but at a Company index However, much slower rate current more than reported in These organizations appear in this week’s Crain’s trends aren’t April. The index fell Detroit Business: favorable for challenged to 53.5 in May from Alte ...... M17 American Flag & Banner ...... M14 the offering, 60.4 in April. A Angle Advisors ...... 21 experts say. over the reading above 50 in- Ann Arbor Spark ...... M3 The compa- dicates growth. Applied Energy Technologies ...... 20 ny has an- past On Friday, the AVL Strategic Analytic Services ...... M20 nounced no U.S. Department of Bodman ...... 20 couple Borders Group ...... 1 specific timetable for Labor reported a sig- Butzel Long ...... M14 the IPO; the registra- weeks. nificant slowdown College for Creative Studies ...... M4 tion statement filing in hiring for May at Delphi Automotive ...... 3 was made with the ” only 54,000 new Detroit Pistons ...... 1 JOHN SOBCZAK U.S. Securities and Ex- David Sowerby, jobs. Analysts ex- Detroit Regional Chamber ...... M11 Loomis, Sayles & Co. LP Dykema Gossett ...... 3 change Commission on pected a much high- ELM Analytics ...... M20 May 25. Although the market has er number — at around 165,000. Emagine Entertainment ...... 3 recovered, this economic stumble These factors significantly affect Foley & Lardner ...... M12 makes raising significant capital stock prices and could affect in- GalaxE.Solutions ...... 12 Grand Valley State University ...... M36 through an IPO more difficult, said vestors’ interest in Delphi, said Going green with Henry Ford Health System ...... M1 David Sowerby, portfolio manager Richard Hilgert, an automotive se- Honigman Miller Schwartz & Cohn ...... 20 for Loomis, Sayles & Co. LP in Bloom- curities analyst for Chicago-based Iconma ...... 10 field Hills. investment analysis firm Morn- IHS Automotive ...... M18 “There has absolutely been Ilumisys ...... M17 InStar Services Group ...... M8 some headwinds for autos, and the See Delphi, Page 21 Jorgensen Ford ...... M15 a silver screen Kelly Services ...... 11 MarkLines North America ...... M20 McCarthy Blanchard ...... 21 McTevia & Associates ...... 18 Meijer ...... M8 Rooftop solar panels help secure MGM Grand Detroit ...... M14 Positioned for handoff Michigan American Federation of Teachers . . . . M32 Michigan Gaming Control Board ...... M14 financing for Emagine project Michigan State University ...... M32 Miller Canfield Paddock & Stone ...... 20 BY JAY GREENE Departing CEO led Dykema expansion MPI Research ...... M8 CRAIN’S DETROIT BUSINESS Oakland University ...... M31 It is appealing to BY CHAD HALCOM Palace Sports & Entertainment ...... 1 Spending $350,000 on a 40-kilo- “ CRAIN’S DETROIT BUSINESS PEP Stations ...... 20 PinkFlaminGo ...... 17 watt solar panel array isn’t some- our young Plunkett Cooney ...... M12 thing most businesses do. It’s hard to accuse Rex Schlay- baugh Jr. and his 85-year-old De- Presidents Council, State Universities of Mich. . . M35 But Paul Glantz, CEO of Novi- audience, and the Principal Associates ...... 13 based Emagine Entertainment Inc., troit law firm of being unwilling to Rofin-Sinar Technologies ...... M19 looked at a solar power-generat- payback makes adapt. Ross School of Business ...... M36 The chairman and CEO of Dyke- Soulbrain ...... M18 ing system as an investment that South University ...... M38 helped him economic sense after ma Gossett PLLC steps down from those leadership posts at the end of Strategic Staffing Solutions ...... 12 complete the SupplierBusiness ...... M20 ENERGY BOOST financing the incentives. this year but will remain an active The Detroit Food Entrepreneurs ...... 17 package to ” member in the firm’s corporate Top Craft Tool ...... 4 Incentives: and transactional practices and Trowbridge Restaurant Group ...... 17 What’s out there? build the Paul Glantz, spend more time serving on vari- United Auto Workers ...... M10 Page 20 company’s Emagine Entertainment Inc. University of Michigan ...... M31 ous local boards. $19 million Vision Consultants & Promotions ...... M14 He’ll also serve on a new com- Emagine Royal Oak and Star Lanes, After seven years, the solar ar- Walsh College ...... M36 mittee that will form over the next Wayne State University ...... M31 which opened last month. ray will have paid for itself. With few weeks to review candidates With federal tax credits and a 25-year guarantee on the panels and appoint a successor — hope- DTE Energy Co.’s SolarCurrent and rising electricity costs, fully by early October — for ap- program, Glantz will end up Glantz said, the investment will proval by the partners. The firm Department index spending about $150,000 on the cut the 71,000-square-foot the- COURTESY OF DYKEMA GOSSETT PLLC expects to inform its attorneys Dykema Gossett PLLC Chairman and 162-panel solar power array, in- ater’s annual electricity bill by BANKRUPTCIES ...... 6 about succession plans over the CEO Rex Schlaybaugh Jr. steps down stalled by Michigan Solar & Wind about 20 percent. weekend. from leadership at the firm this year. BUSINESS DIARY ...... 14 Power Solutions in Commerce But Glantz said the key to com- Dykema, Michigan’s top-gross- CALENDAR ...... 16 Township. pleting the theater project was ing law firm with $175 million in to the firm Schlaybaugh took over CAPITOL BRIEFINGS ...... M9 “The tax credits and SolarCur- the solar panel investment. As 2010 revenue according to data fur- from predecessor Lloyd Semple in rent’s made the net cost very rea- part of the financing package, CLASSIFIED ADS ...... 16 Crain’s early 2002. sonable,” Glantz said. “We expect nished to , now has more KEITH CRAIN...... 7 than 70 practice groups across five a good return on investment.” See Solar, Page 20 LETTERS...... 7 states and bears little resemblance See Dykema, Page 20 MARY KRAMER ...... M7 OPINION ...... 7 Webchat on Pistons deals Crain's nominations OTHER VOICES ...... 8 Crain’s reporter Bill Shea will host a live chat at The nomination period for Crain’s Women THIS WEEK @ PEOPLE ...... 15 2 p.m. Wednesday about the sale of the Detroit to Watch awards has been extended to WWW.CRAINSDETROIT.COM Pistons and Palace Sports, crainsdetroit.com. June 17, crainsdetroit.com/nominate. RUMBLINGS ...... 22 WEEK ON THE WEB ...... 22 20110606-NEWS--0004-NAT-CCI-CD_-- 6/3/2011 6:57 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS June 6, 2011

16th ANNUAL IREM Monday GOLF OUTING June 27, 2011 A small supplier’s struggle to survive

BY DAVID BARKHOLZ bankruptcy process, Tower’s Fiebig Sleepless nights and 60-plus-hour CRAIN NEWS SERVICE said, “You will have to draw your workweeks marked the next two own conclusions on this question.” years for the Kimmens. The busi- In March, brothers Lloyd and He noted that Tower continues to ness downturn that hurt Tower Gary Kimmen answered an all-too- provide jobs to 8,000 people globally caused Top Craft to lose sales from familiar phone call at Top Craft Tool and 3,000 in the United States. Tow- other customers. Inc., their small machine and tool er reported fiscal 2010 revenue of It was during that time that the company in Clinton Township. about $639 million. Kimmens became more aggressive On the line was one of their cus- Top Craft Tool is a jack-of-all- in diversifying into defense and tomers, Tower International Inc. The trades company that makes every- aerospace work, Lloyd Kimmen Kimmens say the big supplier thing from gauges that measure said. wanted a 30 percent cut on the parts on assembly lines to limited- Top Craft took special machining $65,000 price of an assembly-line volume production parts. For in- jobs from the government, such as Indianwood Golf tool Top Craft was preparing to de- stance, Top Craft makes a special parts for the U.S. Army’s Stryker Ar- & Country Club liver and other tools that already tool for the U.S. military to remove mored Vehicle. Today, Top Craft had been delivered. lenses from tank sights. generates about 50 percent of sales Host of the 2012 U.S. Senior Open Golf Where The The call also brought back bad Top Craft has 26 employees to- from defense and aerospace and Pros Are Going memories. While Tower was in day, about the same as before the 40 percent from the auto industry. to Golf! bankruptcy in 2005-07, a judge had Tower bankruptcy, because the In 2005, automotive accounted for allowed it to cancel a $93,000 pay- brothers rebuilt the business. 70 percent of sales. Michigan Chapter No. 5 ment to the Kimmens. The Kimmens had to scramble to Top Craft also has come almost “We were thinking, ‘We just can’t keep Top Craft afloat. They used all the way back financially. A year For more information, please contact Susan Knowles escape these guys,’ ” said Lloyd their homes and personal retire- ago the company paid off its $75,000 248.615.3885 | [email protected] | www.iremmi5.org Kimmen, 55, who, along with 50- ment accounts as collateral to get a term loan and last month paid off year-old Gary, carries on the com- $75,000 term loan from Top Craft’s the $100,000 line-of-credit, Gary pany their father started in 1968. bank and an additional $100,000 line Kimmen said. Politicians and business leaders of credit from a second bank, Gary Gary Kimmen said: “We’ve in Detroit celebrate the success of Kimmen said. moved on, and we’re pretty strong. the bankruptcy process and auto The brothers also would ante up But we still end up holding our bailouts, which saved General Mo- $60,000 apiece of their own money to breath.” tors Co., Chrysler Group LLC and tens keep operations going, he said. From Automotive News of thousands of jobs. But the Kim- Capture the Special Moments of Your Life. mens’ continuing struggles under- score the high cost of the triumph. FOR LEASE The Kimmens are putting their CRYSTAL GLEN business back on a solid footing. 39555 ORCHARD HILL PLACE To survive, the brothers had to of- NOVI, MI fer their homes as collateral on new loans. And they worked 60- hour weeks to diversify Top Craft’s business into defense and aerospace. Tiny Top Craft posted 2010 revenue of $3 million. In March, the Kimmens say, Tower called because it was preparing to buy the assets of distressed W Industries Inc. Tower wanted to slash its payment to the Kimmens for a tool that W Indus- tries had ordered from the Kim- mens, the brothers say. But the Kimmens hadn’t yet » Beautifully Finished Suites FOR MORE INFORMATION PLEASE CONTACT: shipped one tool included in the From 667 - 15,360 SqFt DAN VERDERBAR $65,000 bill, which was critical to » Upgrade Your Image, Without [email protected] an assembly line at W Industries. Increasing Your Costs Call the studio today to book your free consultation. They used that leverage to get paid » Highly Visible, Easy to Locate, in full. Professional Class A Ofﬁ ce Space 248.324.2000 WWW.FRIEDMANREALESTATE.COM 248.539.0680 U www.rosenmanphoto.com “We were lucky,” Lloyd Kimmen » Amenities Include: Café, Hair Salon, said. “We had them over a barrel.” Tenant Conference Facility, Full A few years ago, during Tower’s Service On-Site Management ofﬁ ce eCODE 160

bankruptcy, the Kimmens were INFORMATION IS SUBJECT TO VERIFICATION AND NO LIABILITY FOR ERRORS OR OMISSIONS IS ASSUMED. WE HAVE NO REASON TO DOUBT ITS ACCURACY, BUT WE DO NOT GUARANTEE IT. the ones over a barrel. Looking back on those days, here’s how Tower sees the $93,000 write-off the Kimmens had had to swallow: It says that $93,000 liability became the responsibility of the former Tower Automotive Inc., a moribund company that remained in U.S. Bankruptcy Court. The current Tower International, re- launched and released from bankruptcy court, is “not aware of what may or may not have been paid to Top Craft,” said Tower spokesman Derek Fiebig. Fiebig declined to comment on the most recent request for a price cut on the W Industries tooling. Tower’s largest shareholder is gi- ant private equity firm Cerberus Cap- ital Management. Cerberus, which once owned Chrysler, bought Tow- er out of bankruptcy in 2007 in a deal valued at about $1 billion. As they take stock of the wrenching bankruptcy process, the Kimmens can’t help but believe that large companies have distinct advantages over the little guys when hard times hit. Asked about the fairness of the DBpageAD.qxp 5/27/2011 4:16 PM Page 1 WE ARE NOT BEANTOWN, CHI-TOWN, OR THE GARDEN, SHOWTIME OR THE SHARK TANK, BRONX BOMBERS, OR PHANATICS.

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Page 6 CRAIN’S DETROIT BUSINESS June 6, 2011 Alzheimer’s treatment to enter second trial Bing: Turnover inevitable, budget accord near Ann Arbor-based Adeona Phar- BY NANCY KAFFER Dumas is there to stay. the jobs.” ters, for example, is a city budget. maceuticals Inc. has announced CRAIN’S DETROIT BUSINESS “Number one, with turnover, I Bing said recruiting top talent to Bing said at the conference that it will begin enrolling more than came into the office May 5 (2009). I the city has been a challenge but he is nearing a compromise with 100 patients age 70 and over for MACKINAC ISLAND — Detroit was voted in on May 5, and I start- that the business community has the Detroit City Council over cuts to another clinical trial of a zinc- Mayor Dave Bing defended his ed on May 9. I had no transition offered to help find new employ- his proposed budget and said there based treatment for symptoms staffing deci- time whatsoever,” Bing told ees. would probably be an announce- of Alzheimer’s disease. sions and said a Crain’s. “All the things I inherited “We don’t have people knocking ment today. The company hopes to conduct city budget com- were from the last administration, doors down saying ‘I want to work “We will have a compromise,” the trial over the next 12 months promise was im- and the worst thing I could have for the city of Detroit,’ ” he said. Bing said. “I can’t tell you what it and — if results mirror the first minent while at done on Day One is make changes, “There are several things you is at this point, but we will have a trial of 47 patents aged 52-86 — to the Detroit Re- because I didn’t know the person- have to deal with that don’t make compromise.” get approval from the U.S. Food gional Chamber’s nel.” it a real pleasing job. It takes a spe- The mayor’s roughly $3 billion and Drug Administration to sell the Mackinac Policy Bing said as he learned more cial kind of person in order to do budget didn’t go far enough to at- product, called reaZin, as a pre- Conference last about the staff, he was able to that. With all the negative things tack the city’s accumulated and scription dietary supplement. week. make personnel changes “based you read about the city of Detroit, operating deficits, council mem- The staffing Patients in the placebo group Bing on performance or lack thereof. it’s a very tough sell.” bers said, and it included too many in the first trial continued to and city leader- Some people left of their own voli- Bing said he’s not sure why Du- soft revenue sources. The accumu- show cognitive decline over the ship comments were in the wake of tion, and you can’t do anything mas is at the heart of rumors and lated deficit is expected to be about six months the trial lasted. Those news reports critical of the churn about that. Others were let go. complaints regarding trouble in $200 million by the end of the fiscal taking the supplement showed a in the mayor’s office. “I came in on change. When peo- his office. year June 30. stabilization in decline. In the past two years, at least 50 ple say we don’t have stability, I “I think a lot of it has to do with The council made an additional of roughly 110 mayoral appointees Older Alzheimer’s patients think we should make a list of all high visibility,” he said. “She’s the $50 million in cuts, which Bing’s have a faster decline than have left or been fired. the things we’ve done in the last top person in our organization office says will force layoffs in the younger patients, so they stand Two letters, one anonymous two years.” from a communications stand- Detroit Police Department. The coun- to benefit more from stabiliza- and one signed, say Bing’s chief Bing said while some of the peo- point, and she probably spends cil contends that the cuts can be tion. The supplement raises communications officer, Karen ple who have been dismissed were more time with me than any of the made through attrition and by zinc levels and lowers copper Dumas, is in part responsible for brought in during his tenure, they other top officials. For whatever shifting sworn officers away from levels in patients. Elevated cop- creating a hostile work environ- were not all his hires. reason, people think she has all of administrative functions. per levels are suspected of con- ment. “There are people some of our this power, but she doesn’t have The council approved its amend- tributing to the severity of But Bing said the turnover is an directors report to,” he said. “If power that the other top execu- ed budget 8-1, but Bing vetoed it Alzheimer’s symptoms. inevitable part of his work to re- you’ve got the right people at the — Tom Henderson form city government, and that top, you allow them to do tives have. last Wednesday. The council needs “In terms of what’s going on, I a six-vote supermajority to over- can’t take a step back and think, ride a mayoral veto. because I’m so busy trying to put Council President Charles Pugh out fires and solve problems. The told Crain’s that the council was only way to solve that is to get the willing to compromise but had cer- right people in leadership posi- tain priorities from which it tions, which allows me to be vi- wouldn’t budge. sionary.” Pugh said new revenue sources His plan is to keep working on don’t eliminate the need for cuts. city business and wait out the tur- Nancy Kaffer: (313) 446-0412, bulence. [email protected]. Twitter: One of Bing’s most urgent mat- @nancykaffer

BANKRUPTCIES

The following businesses filed for Heaven’s Creamery LLC, 924 Barclay Chapter 7 or 11 protection in U.S. Drive, Troy, voluntary Chapter 7. As- Bankruptcy Court in Detroit May 27- sets and liabilities not available. June 2. Under Chapter 11, a company Pro-Line Door Systems Inc., 21109 For- files for reorganization. Chapter 7 in- est Villa Drive, Macomb Township, volves total liquidation. voluntary Chapter 7. Assets and liabil- Z Com LLC, 40235 Gulliver Drive, Ster- ities not available. ling Heights, voluntary Chapter 11. Beninati Contracting Services Inc., Assets and liabilities not available. 4437 22 Mile Road, Utica, voluntary Maralex Inc., 29896 Newberry Court, Chapter 11. Assets and liabilities not Farmington Hills, voluntary Chapter available. 7. Assets and liabilities not available. — Ellen Mitchell DBpageAD.qxp 5/13/2011 11:29 AM Page 1

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Page 8 CRAIN’S DETROIT BUSINESS June 6, 2011

2011 Mackinac Policy Conference Remaking Michigan

OPINION Observations from the conference United regions can pay off big for state ast meets West on Mackinac Island. A couple of dozen CEOs from West Michigan — re- E flecting billions in revenue and thousands of jobs — joined the Detroit Regional Chamber’s policy conference this year for the first time in such great numbers. The result: Leaders from the West Michigan Policy Confer- ence, Business Leaders for Michigan and the Detroit Regional Chamber agreed to find common agenda issues important to all three groups — and work to make them happen. Early action items likely will include the new Detroit Riv- er international bridge crossing and revenue replacement ideas for the personal property tax manufacturers find so onerous. LETTERS TALK ON THE WEB The new direction, announced formally on Friday, is im- Renew strategy, DTE From www.crainsdetroit.com portant. Too often, the game in Lansing has been to pit one re- Editor: Re: Bridge bickering turns nasty Reader responses to stories and gion against another to stall policy change. DTE Energy Co. CEO Gerard An- The latest oxy-Moroun: “Cham- blogs that appeared on Crain’s A united business leadership has the potential for paying derson recently told Crain’s Detroit pion fair competition — pre- Web site. Comments may be big dividends for the entire state. Business that DTE would spend serve my monopoly.” edited for length and clarity. “$200 million to $300 million a year on normhy renewables over the next three Med devices our next big cluster? years” (“DTE investment plan: Re- Michigan does not need to be skin color, national origin or newable energy, emissions, out-of- in the bridge business — espe- sex. But that means no preferences state deals,” May 2). because of skin color, etc., either. Michigan is more than auto. A study by Harvard’s competi- cially this one. This will cost the This is about as much as DTE is state money that it does not have RogerClegg tiveness guru Michael Porter shows Michigan has economic spending on coal plant upgrades. and thus will cost the taxpayers clusters that rank in the top 10 nationally. Auto, of course, is DTE should ramp up its invest- money. Re: Will Tressel’s departure help UM? ments in clean energy — especially WJW No. 1. But other industry clusters that follow include metal I hated losing to Ohio State, manufacturing, plastics, biopharmaceuticals and aerospace in-state wind power, which unlike coal will generate Michigan jobs (we Re: Kwame Kilpatrick ‘tell-all’ book but I never hated Jim Tressel, the engines. import all of our coal). person. Appearing in the fiction section Walt Medical devices may soon be added to that list. Forget the public health and envi- of your neighborhood bookstore As Tom Henderson reports on Page M1, Henry Ford Health ronmental benefits; wind power is soon. Bravo. This is the first time a System is creating an innovation institute with local partners better for our economy. Regulatory Alex Martin costs will only make coal more expen- rational article has been written like Wayne State University and out-of-state partners like sive, while wind power is getting Does the Son of Sam law not ap- about this. Lockheed Martin Corp. cheaper every day. ply in Michigan? michaelweinstein Everything from robotic surgery tools to diagnostic de- Michigan’s Xcel Energy recently AndrewCanDo vices to ergonomically designed furniture for operating rooms raised its rates 6 percent after adding Re: Rail donors wait for layout is on the table in the center’s purview. 500 megawatts of new coal; by contrast, Re: Chrysler and supplier diversity We need legislative action it raised rates 2 percent after adding and/or a ballot initiative soon Partners expect grants from government and corporate 1,300 megawatts of wind and solar. It’s good to make sure that sources to fund research and eventual spinouts of for-profit contracting programs are open for regional transit. This mish- DTE can realize similar cost advan- mash of private bar shuttles, du- companies to transform research to reality. tages by taking bolder steps in the di- to all, that bidding opportunities are widely publicized before- plicated public bus routes, a dis- The center and the ambitious plans add to the momentum rection of clean energy. connected downtown loop, Joe Rector hand and that no one gets dis- and buzz in Southeast Michigan and the state as a whole. Hamtramck criminated against because of See Talk, Page 9 KEITH CRAIN: The mayor of Detroit asks for some help Last week, Dave Bing com- porter for quite a while. lots of responsibility in Obviously there are some real whether it’s in the private sector plained, although not loudly, that If the mayor of De- private business, to personnel problems within the or public. You need to attract good he wasn’t getting the assistance troit now needs addi- have responsibility in mayor’s administration. And any- people who know their fields and that he had hoped for from the busi- tional assistance, I his administration. time you have back-biting and are effective administrators. When ness community of Southeast would not be surprised With lots of high- character assassination, it has to it’s a city government, it often is Michigan. to see our businesses placed appointees leav- make the jobs even more difficult. more difficult to be competitive. I know in the very beginning of once again step up and ing the administration, But the mayor is going to have The personalities and corporate his administration there were volunteer executives it is important that there to do some soul-searching and de- structure of the city of Detroit seem scores of executives who were will- who would be willing to are talented executives cide what and who is a detriment to make the job of mayor even more ing and able to help the newly elect- help out the city of De- who can fill the void, to the effectiveness of his adminis- difficult and challenging. There is ed Bing administration. Most of troit for some period of even if it’s temporary. tration. He is going to have to no simple solution, but it looks like those were unpaid and paid their time. At least, I would And if the mayor make that determination; no one something has to be done quickly to own expenses for as long as a year. sure hope so. asks for executive assis- else can do it for him. But he will stop the exodus and replace execu- Whether they have all moved on, But I think it is going to have to tance, he needs to be very aware then have to live with the conse- tives who have left. leaving the mayor’s office to fend be a two-way street. The mayor is that they, as unpaid temporary ex- quences, good or bad. Dave Bing has to be asking him- for itself, I don’t know. But I do going to have to empower those ecutives, will not put up with any Running a multibillion dollar self over and over why he wanted know that business was a great sup- loaned executives, who have had challenges to their jobs. business can be a real challenge, this job in the first place. 20110606-NEWS--0009-NAT-CCI-CD_-- 6/3/2011 10:58 AM Page 1

June 6, 2011 CRAIN’S DETROIT BUSINESS Page 9 OTHER VOICES: Snyder’s school ideas are great for state

Education just got a lot And the governor — a schools have no college-ready stu- years now — finding intersections come to the realization that what better in Michigan. And pragmatic, facts-driven dents at all. The governor called for quality, accountability, effi- we need to break the grip that that’s because it’s finally man — clearly thinks those numbers scary, and I agree. ciencies and innovation while in- poverty has on Michigan is a fun- starting at the beginning. reinvention is long over- Turning them around requires creasing private sector investment damental change in how we view Gov. Rick Snyder re- due in Michigan based on starting at the beginning, in the in early childhood. children and their role in econom- cently announced that he the numbers: One-fifth of first few years of life, when the The governor’s goal, of course, ic development. will consolidate a host of all children in Michigan brain is developing fastest. It also is to help children. But in helping Help them early when it matters state early childhood ser- live in poverty; only three requires a public/private ap- children, we help ourselves. Re- most and they’ll return the favor vices into an Office of of every 10 fourth-graders proach that understands that gov- search tells us that investments in to Michigan tenfold down the line. Great Start-Early Child- in Michigan can read pro- ernment can’t — and shouldn’t — early childhood development for It’s just good business. hood in order to create a ficiently; and less than 50 do the job alone, which is where disadvantaged children provide a An Office of Great Start is a coordinated vision and fo- Hollister percent of Michigan stu- the Early Childhood Investment 10 percent return to society great start. cus for public early childhood ef- dents are proficient in writing Corp. comes in. through increased personal David Hollister is senior vice forts in Michigan — and ultimate- across grades four, seven and 11. As the governor said in his let- achievement and social productiv- president for strategic initiatives ly make it easier for parents to get As a result, only 16 percent of ter to lawmakers, the ECIC will ity. for the Prima Civitas Foundation the help they need locally. The end Michigan’s high school students partner with the new Office of Gov. Snyder is an astute busi- and an executive committee mem- result will be more school-ready are college-ready based on their Great Start-Early Childhood and nessman. He’s seen those “return ber of the Early Childhood Invest- children. ACT scores, and hundreds of do what it has been doing for six on investment” numbers and has ment Corp. It’s a bold and welcome change. Gone will be the antiquated notion that education is something that miraculously starts when a child enters kindergarten. In its place will be an educational system that acknowledges what research has been telling us to do for decades now — start at birth, make sure kids are healthy, arm their parents with knowledge and help them with things like prenatal care, preschool and child care. Do those things and more children will be able to keep up instead of falling behind, as they do so often now, beginning in kindergarten. Fewer kids will repeat grades or require special education. More will go on to graduate, which means fewer young adults in the criminal justice and welfare systems. Michi- gan’s workforce and pool of taxpayers will deepen rather than dwin- dle. And perhaps most important of all — those adults will go on to have children who also are more likely to succeed. Change won’t happen overnight, of course. It will take time for some people to embrace what the gover- nor has called a P-20, or prenatal to post-secondary, approach to education. The governor himself acknowledged as much when he said, “This will not be an easy change. But it’s not about simple change. It’s about reinvention.”

TALK CONTINUED ■ From Page 8 Your ideas for growth are there, coupled with a shifting tax base, is not making an effective, cohesive transit network that’s getting com- and now the capital is, too. muters out of their cars. laphoque

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Page 10 CRAIN’S DETROIT BUSINESS June 6, 2011 Iconma founder learned staffing biz from bottom up, builds $89M company

BY SHERRI WELCH CRAIN’S DETROIT BUSINESS

Claudine George, head of Troy- based staffing firm Iconma LLC, ini- tially followed in her father and grandfather’s corporate footsteps. But after several years as a contract IT employee at large companies like EDS and Chrysler in the 1990s, she realized climbing the corporate ladder wasn’t for her. “I couldn’t seem to master … office politics,” said George, who’d earned a degree in psychology from the University of Michigan before moving into IT through a variety of contract assignments with staffing firms. “I realized that to increase my income potential and enjoyment, I had to be working with people GLENN TRIEST more — and be my own boss.” Claudine George’s Iconma LLC is listed among North America’s fastest- I’M AN MSU LAW ALUM... She launched Iconma in 2000, growing woman-owned companies. posting about $1.8 million in revenue that year and $89 million last George after 1999 when, at the age Preparing future lawyers to use year. This year, she’s projecting of 29, she struck out on her own as more than $100 million. an independent recruiter, locating intellect, ambition, and ethics Her company’s fast-paced growth engineers and IT people for compa- to solve the world’s problems. landed it on this year’s list of the 50 nies on the West Coast. www.law.msu.edu Fastest-Growing Women- She worked with another re- Owned/Led Companies in North cruiter and a salesperson as inde- America sponsored by the New pendent contractors, applying the York-based Women Presidents’ Or- staffing industry knowledge she’d ganization and the small-business di- gained from seven years of work- vision of American Express. “I think ing at Troy-based Sirco Associates psychology led into staffing because Inc., Aerotek Inc., Kelly Services Inc. I love to help people,” George said. and other firms. She tells potential clients she un- A year later, George launched derstands what it takes to keep con- Iconma. She continued to do recruit- tract employees happy because she ing herself and hired “top-notch” re- was one. The end result? A consis- cruiters and salespeople, giving tent, productive workforce for them. them what they wanted or needed to And they don’t know it, but the succeed — including the corner of- contract engineers, IT people, ac- fice and, in some cases, more pay countants and finance profession- than she was making herself. als who call the after-hours line at “I had to make a sacrifice (to Iconma get the CEO. meet) their salary demands, bor- “I can help people get into jobs row money from family and han- (temporary and permanent) they dle the fact they were making are seeking (through) connections more than me,” she said. “I was Begin your own tradition. with Fortune 500 companies betting on them, and they didn’t let across the country,” George said. Success came quickly for See Next Page

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From Previous Page er on the recruiting side to main- So has George really avoided the me down.” tain our client base.” corporate path? She describes her The recruiters George hired were Today, about half of Iconma’s company as one with streamlined typically better at finding contract revenue and new contract employ- processes like a bigger company but employee prospects with the skill ees each year are through referrals, more relaxed in corporate atmos- sets that employers were looking George said. phere, such as the dress code, and for, but often not as good at getting It has more than 50 direct em- the way people are empowered to and them to sign on, she said. ployees at its Troy headquarters work independently. “I’d get on the phone and tell and more than 1,000 credentialed “I would describe our culture as them (potential employees) that I contractors serving a range of in- having the entrepreneurial spirit used to be a contract employee and dustries. But it’s strongest in the and personal touch of a newer com- SURVEY understood their No. 1 priority is health care, finance and automotive pany, but the organized efficiency getting paid on time, customer ser- industries. of a larger organization.” vice and benefits,” she said. Last year, Iconma placed con- Sherri Welch: (313) 446-1694, Iconma’s salespeople began the tract employees at more than 50 [email protected]. Twitter: @sher- Businesses See a push for new business, emphasiz- companies across the country. riwelch ing the company was woman- owned and technology-based, and landed its first few clients: Delta Den- Better Future tal of Michigan, the former Arson Corp. in California and Florida- based Pro Unlimited, which managed staffing firms for large companies across the U.S. Today, Iconma’s client base includes Blue Cross Blue Shield of Michi- gan, AAA of Michigan, Flagstar Bank, Johnson Controls Inc., Consumers Ener- gy Co., WellPoint, Capital One and Bank of America. When Blue Cross consolidated its supplier base two years ago, it retained Iconma, which had been supplying IT specialists since 2007. “Being a supplier for only a couple of years and making the cut, Highlights of the survey can be found in that’s an example of how good they are,” said Donna Strickland, suppli- this issue and the full survey can be found at er diversity program manager at honigman.com or crainsdetroit.com Blue Cross. “They’re one of the best — very This is the 17th in a jointly-sponsored series on critical issues. capable, very qualified.” Iconma has worked with Kelly Services for the past 11 years. Icon- ma began providing contractors to deliver IT services to Kelly’s corporate headquarters in Troy before moving into a subcontractor role, providing contract employees for Kelly’s customers, said Duane Green, director of supplier diversity at Kelly. “I work with many staffing companies, and I’m always impressed by Iconma’s performance,” he said. George leads by example, always extremely engaged in meeting customer needs on a consistent basis, Green said. In its capacity of managing several staffing firms for large clients, You Deserve More Thought Per Square Foot Kelly looks for vendors that respond immediately to issues that arise such as people not showing up for work or giving little or no notice when leaving a job, so customers aren’t left in the lurch, Green said. “I see Iconma as being a very strong, quiet player — they’ve grown without a lot of fanfare, and that’s due to great leadership and great service delivery.” Iconma’s salespeople pointed George to the Washington, D.C.- based Women’s Business Enterprise National Council, a national organization that accredits women-owned businesses and by 2002 persuaded her to certify Iconma as a woman- led business. Throughout the year, WBENC and its 14 regional partner organi- Real Estate Strategy zations provide opportunities for interactions between more than 650 Tenant Representation member corporations and government agencies and thousands of cer- Buyer Representation tified women business enterprises at business-building events and oth- Project Feasibility er forums. Good real estate deals are at lower lease rates; great ones are WBENC’s promotion of Iconma Construction Oversight through those events and word-of- aligned to the needs of your organization. Let our experienced mouth advertising helped the com- real estate department for hire show you what to ask for. Incentives pany grow quickly, George said. “Being WBENC-certified opened Lease Administration doors on the new business develop- pmcresa.com 248.223.3500 ment side, but we still have to deliv- 20110606-NEWS--0001-RG1-CCI-CD_-- 6/2/2011 5:57 PM Page 1

June 6, 2011 CRAIN’S DETROIT BUSINESS Page M1

2011 Mackinac Policy Conference Remaking Michigan

IN THIS ISSUE From Mackinac ‘Buy Michigan’ initiative Shedding Snyder, execs unveil $3B public-private effort, Page M6 Publisher’s perspective Mary Kramer’s observations from the island, Page M7 Execs’ to-do lists Four companies’ top officers light on target state woes, Page M8 Online extras Conference coverage, video, a Twitter feed and blogs, crainsdetroit.com/Mackinac Inside: Casinos reinvention Stakes Build on clusters, report says; rising tide lifts all boats, high say Snyder, Finney Rules have some suppliers BY TOM HENDERSON without seeming to pick and folding their cards, Page M14 CRAIN’S DETROIT BUSINESS choose winners? Absolutely, says Rick ran in arvard professor Michael Snyder. Ann Ar- Focus: Innovations Porter says strong economic Absolutely, says Mike Finney, bor, Avalon In- H clusters are important to a president and CEO of the Michi- JEFF JOHNSTON/CDB vestments and Ardesta. “I Technology state’s financial health gan Economic Develop- teresting, but from a government worked hard at it and I got pretty (including — and that one of Michi- ment Corp. point of view you don’t want to good at it, but to say the govern- Rofin-Sinar’s gan’s few existing eco- Both stand by the focus on clusters, per se, but on ment is going to be good at it? lasers) drives nomic premise that the best overall governance,” Snyder told “The Michigan Business Tax manufacturing READER strengths is thing they can do is pro- Crain’s, which sponsored is a good illustration. It was a revival, the breadth vide a good business cli- Porter’s presentation. “I’m work- very complicated tax that had 30 Page M17 VIEWS and depth of mate, and they agree ing on an economic environment credits to go with it. The state its clusters. that the state is off to a that will work well for everyone. was trying to pick winners, but Poll: So, can a It’s about creating an environ- Weighing in good start with tax bills if you weren’t one of the win- on clusters governor signed last month, par- ment that creates jobs. ners, it created a worse tax for and more, who says it is ticularly the one that re- “I did venture capital for a lot you.” Porter Business Education Page M3 unwise for places the convoluted of years, and it’s hard work say- Porter’s presentation grew out the state to pick and Michigan Business Tax with a ing this will work and this of a report the Harvard Business choose economic winners bol- flat-rate tax of 6 percent. won’t,” Snyder said, referring to Tension over tenure: ster Michigan’s existing clusters “The concept of clusters is in- the two venture capital firms he See Clusters, Page M3 Budget pressure is on, Page M31 Innovation Institute ‘conversation changer’ Backers say for-profit research would boost health care, region

BY TOM HENDERSON and COO of the health system. “I CRAIN’S DETROIT BUSINESS really believe this will be a conversation-changer about Detroit Boulus on ed cuts: “When is Henry Ford Health System offi- on a national level. We have an it going to end?” Page M35 cials have grand plans for a opportunity to do something here world-renowned on a very large scale.” What’s in a website? Schools center that FOUR IDEAS The Innovation Institute at Henry rethink their online presence, brings together Ford will be housed in a three-sto- Page M36 medical re- Student ry Albert Kahn building known searchers, de- designs: CCS as the Old Ed Building. The signers and en- volunteers eye 38,000-square-foot building, built Crain’s Lists Henry Ford for gineers to create improvements, in 1924 as an educational center for-profit com- Page M4 for student nurses, currently Private 200, Pages M22-M29 panies making a houses hospital administrators. Graduate degree programs, wide range of medical products. The new institute will involve NATHAN SKID/CRAIN’S DETROIT BUSINESS “The goal is not just economic collaborations with such academ- Page M40 From left, Greg Auner of Wayne State’s School of Engineering, Vincenzo growth for Henry Ford but an eco- ic institutions as Wayne State Uni- Iavicoli of the College for Creative Studies and Mahdu Prasad of Henry Ford nomic transformation of the re- Health System are teaming up for the Innovation Institute at Henry Ford. gion,” said Bob Riney, president See Institute, Page M4 DBGateFlap.qxp 5/11/2011 10:00 AM Page 1

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June 6, 2011 CRAIN’S DETROIT BUSINESS Page M3

2011 Mackinac Policy Conference Remaking Michigan

Clusters: Shining light on reinvention READER VIEWPOINTS Crain’s readers weighed in on some of the concepts discussed by Michael ■ From Page M1 Porter in a survey conducted by Epic-MRA on behalf of Crain’s Detroit Business and Honigman Miller Schwartz and Cohn LLP: School professor did for Snyder on Which of the following reasons do you believe is most responsible for Michigan’s economic competitive- WHERE THE CLUSTERS ARE Michigan being among the least competitive states in economic ness at February’s national gover- According to Harvard University performance between 1999 and 2009? nor’s conference. Professor Michael Porter, If Snyder had any doubts about Michigan’s best economic clusters 40% Loss of more than 22% Other the economic climate of the state and their rank nationally are: 800,000 high- 8% State government he had just begun to run, the report No. 1: Automotive wage/low-skill jobs. regulations stifling ended them. It was a stark portrait No. 3: Metal manufacturing 19% Interference by business expansion of just how far Michigan had fallen labor unions, including and relocation. No. 4: Plastics compared with other states and the professional and 11% Excessive state No. 5: Production technology government employee District of Columbia. Finney Snyder taxes on businesses. associations. Michigan ranked at the bottom No. 7: Biopharmaceuticals No. 8: Aerospace engines or near the bottom in statistic after gineering jobs. How important is it to have economic clusters of particular industries? statistic: 51st in growth in gross No. 11: Business services “Terumo Cardiovascular in Ann domestic product per capita from No. 11: Transportation and Arbor is hiring every automotive 56% Very important 2% Other 1999 to 2009; 51st in gross domestic logistics engineer they can get their hands 4% Not important at all product per worker; 51st in the on, because they know how to 7% A little bit important growth in wages; 48th in popula- fixing the problem,” Porter said. build things,” said Finney. 31% Somewhat tion growth; 48th in unemploy- “My No. 1 reason for accepting “What we need to do is a better important ment; 43rd in gross state product this opportunity was to help get job of workforce development,” per capita in 2009 — its average of something started, with a new said Snyder. “We need to apply $36,952 fully 20 percent below the governor and a business commu- what Spark did statewide and con- national average of $46,093. nity willing to be mobilized. nect the labor supply to demand If Michigan moves ahead with policies and programs aimed at fostering And the scary thing was that, “The hope is we’ll help provide and innovation.” economic clusters in order to gain a competitive advantage, which of the barring change, things were going some data and some perspective MEDC has also launched a pro- following do you believe would be most helpful? to get a lot worse. and help get people engaged. I’ve gram called MichAgain, where Of little Not Page two of Porter’s report was been very heartened and encour- MEDC officials try to lure talented Essential Important importance important called a Michigan performance aged by what I’ve seen by what young graduates of Michigan col- Tax breaks targeted snapshot and ranked the state ac- Rick has done so far. His private- leges back to the state, which at specific industries 28% 42% 15% 13% cording to where it is now and sector background is going to be Finney said will be a big resource Grants of government- where it’s heading over the coming very important to the state.” for cluster companies. owned land for construction 17% 35% 23% 23% years in several broad categories. As for growing the clusters Officials have already made two Access to R&D funding 41% 41% 12% 4% It now ranks in the bottom fifth Porter has identified, Finney said: trips to Palo Alto, Calif., and trips Across-the-board reductions in prosperity and labor mobiliza- “The most important thing we to Austin, Texas, Chicago and in business taxes 43% 34% 13% 9% tion, in the middle quintile in clus- could have done was first reduce Boston, with an upcoming trip to State-sponsored retraining 30% 36% 17% 16% ter strength, in the second-best the business tax. That automati- Washington, D.C. Increased funding quintile in productivity and in the cally helps our existing cluster Tom Henderson: (313) 446-0337, for state universities 23% 35% 24% 16% top quintile in innovation. businesses, many of which are [email protected]. Twitter: Note: “Undecided/refused” responses omitted (1 percent to 2 percent). But the trend showed the state small and second stage. They are @tomhenderson2 falling to the lowest quintile in looking to add incremental everything except innovation, and amounts of employees, one or two there it would fall to the second- or five. They’re not looking to site lowest. new plants with thousands of em- Porter talked about the steps ployees.” Snyder’s administration has taken Instead of a system of tax breaks to change the trend, and how it and abatements to attract busi- was paramount to focus on boost- nesses here or to grow the clusters ing the strength of its existing that are already here, he said the clusters. new focus is on economic garden- Michigan’s best economic clus- ing. ters and their rank nationally are: “We still have a very strong tool automotive, No.1; metal manufac- kit to help business clusters. As an turing, No. 3; plastics, No. 4; pro- economic development team, duction technology, No. 5; biophar- we’re pretty happy with where maceuticals, No. 7, aerospace we’re at,” Finney said. That in- engines, No. 8; business services, cludes, he said, helping companies No. 11; and transportation and lo- find bank financing, helping them gistics, No. 11. expand their export capabilities “The ability to build critical and providing brownfield develop- mass in clusters is crucial to dri- ment support. ving economic growth,” Porter “As appropriate, we can use told Crain’s. “The good news is cash resources on the front end as there’s a strong innovation foun- opposed to credits that carry over dation in the state and a good year to year. We’ve got $100 mil- breadth of clusters that are quite lion to do that,” he said. YOUR BUSINESS IS UNLIKE ANYONE ELSE’S well organized. You look at the Finney said the MEDC will use data and you see financial services targeted marketing “to help clus- are strong, business services are ters grow. We won’t chase things Your legal strategies should be too. strong, life sciences is strong, the where we don’t have a strong state is a major logistical hub. business presence. Primarily, it Customized counsel focused on today, with an eye on tomorrow. Those aren’t things people think means marketing the state to about when they think of Michi- businesses in other locations that gan. we know fit into these clusters, ei- “And the state is quite strong in ther to locate here or to bring R&D, in technology and in patent- their business here.” How can we assist? P: 248.539.9900 | E: [email protected] ing,” he said. Finney said a program begun at The state ranks 10th in patents Ann Arbor Spark is being rolled out per 10,000 workers, 8.2 compared statewide. Called Shifting Gears, it to the national average of 6.8. involves retraining skilled work- “There’s been a tremendous ers such as mechanical engineers decade of decline in Michigan, ob- who were laid off from the auto in- Lansing l Farmington Hills l Grand Rapids l Detroit l Marquette l Holland viously, which makes it a good dustry and keeping them in Michi- time to talk about strategies for gan by training them for other en- 20110606-NEWS--0004-RG1-CCI-CD_-- 6/2/2011 3:37 PM Page 1

Page M4 CRAIN’S DETROIT BUSINESS June 6, 2011

2011 Mackinac Policy Conference Remaking Michigan Institute: Backers say research would benefit region, state ■ From Page M1 versity, the College for Creative Stud- and incubated there. ters surgical technology innovation. ies, Carnegie Mellon University in In addition, doctors and hospital “Our collaboration with Henry Pittsburgh, the University of Chicago CCS students prescribe better medical gear executives could serve as angel in- Ford would result in a competitive and the Universidad Complutense de Fifteen students of the College maybe one idea that had commer- vestors providing startup capital advantage over other U.S. or Euro- Madrid in Spain. for Creative Studies in Detroit cial potential. Instead, he got a for companies, sharing in profits pean initiatives because we would Hospital officials envision spin- spent 14 weeks as volunteers at dozen, four of which have been put as they grow and are acquired by be able to compete more effectively ning out companies making such Henry Ford Hospital last winter and on a fast-track for development larger companies. for supranational funding now things as robotic surgery tools and fall, visiting doctors and nurses and possible commercialization. Currently, the health care sys- available through the European diagnostic devices, ergonomic and hanging around waiting They are: tem generates a modest total of Union and NATO,” said Mayol, re- chairs for doctors during long rooms and operating rooms, look- A surgical retractor system about $1 million in royalty revenue ferring to the North Atlantic Treaty surgeries and better communica- ing for medical devices and prod- for open heart surgery, designed for various patents held by staff. Organization. tions systems for waiting rooms. ucts that could be improved. by Mike Forbes. “It hasn’t been a focus. It needs He also said the Madrid Net- The institute, on the hospital’s Each, under the guidance of An endotracheal device to in- to be,” Dulchavsky said. work has investors who would be New Center campus, will also involve Vincenzo Iavicoli, a CCS profes- tubate infants in intensive care, A grant from William Clay Ford likely to invest in joint ventures collaboration and business partner- sor and chair of the school’s prod- by Samantha Vish. and his wife, Martha, recently got between the Spanish consortium ships with the private sector. uct design program, came up with An ergonomic operating construction started. The first and the Henry Ford Institute. The first corporate partner is a specific design with an eye to- room chair for physicians, by Va- phase — 7,000 square feet on the Carnegie Mellon is renowned as Lockheed Martin Corp., which hopes ward commercialization. syl Sydoruk. second floor — is scheduled to be one of the world’s top centers for ro- to help the institute win large gov- In April, they presented their A waiting room communica- done by late summer and serve as botics design and virtual reality ernment grants and forge business designs to officials behind the new tions system, by Eric Myers. a showcase for a Nov. 3 TED (tech- systems to help doctors plan for and relationships among the insti- Innovation Institute at Henry Ford. Engineeering support will be nology, education, design) confer- practice complicated surgeries. tute’s spinoff companies and such “It was one of my most exciting provided by members of the Smart ence the hospital is hosting. Riney said he would love to have private-sector companies as Texas mornings in a long time,” said Sensors and Integrated Microsys- The second-phase build-out of Carnegie Mellon help Henry Ford Instruments and GE Healthcare, a Bob Riney, President and COO of tems Program at Wayne State Uni- the other two floors is expected to design a cheaper, better, smaller business unit of General Electric Co. the Henry Ford Health System. versity. take about two years. The total re- substitute for the hospital’s DaVinci Lockheed Martin is the largest He said he was hoping for — Tom Henderson hab is budgeted at $10 million. The robotic surgery devices. He said aerospace contractor in the world Smith Group is the architect, Albert the DaVincis are cumbersome, use and runs Albuquerque-based San- tegrated Microsystems Program in vesting in spinoffs. Kahn Associates of Detroit is pro- 30-year-old technology and cost up dia National Laboratories for the fed- WSU’s Engineering School. The “They’ve told us, ‘When you’re viding engineering support, and to $1.5 million each. eral government. award is expected to be announced ready, let us know,’ ” he said. DeMaria Building Co. of Detroit is The dean of Carnegie Mellon’s Lockheed Martin already has this summer. “This is designed to be a rev- construction manager. engineering school is Predeep applied for the first grant for the Lockheed, Auner and the insti- enue-producing system,” said Riney said the institute grew out Khosla, a former program manag- institute, of $20 million, to the U.S. tute are working on a second large Scott Dulchavsky, chief of surgery of what he called an “Aha!” mo- er at DARPA who is on the adviso- Defense Advanced Research Projects grant proposal to the U.S. Depart- at Henry Ford and one of the early ment while on a tour of the Ford Mo- ry board of iNetworks Advisors Inc., a Agency to develop a system for fil- ment of Defense to make a sensor- proponents for the institute. tor Co. Rouge plant four years ago. Pittsburgh-based capital firm with tering the blood of soldiers with based, portable device to detect Henry Ford plans to generate He said he was struck by the pre- a Detroit office. Auner is a manag- bacterial infections from wounds. proteins associated with traumatic revenue by licensing patents gen- cision of the robotics systems and ing director of iNetworks here. The project, if funded, would be brain injury in soldiers in the field. erated by the institute, as well as the plant’s design and thought Michael Dudzik, vice president in partnership with Greg Auner, Riney said he has had talks with by having an equity stake in some there must be an almost unlimited of science and technology in Lock- director of the Smart Sensors and In- area venture capitalists about in- of the for-profit businesses formed opportunity to incorporate new heed Martin’s Washington office, technologies and modern design said Auner’s involvement was key into health care. to his participation. “With the talent we have in “He’s doing some of the best sen- health care and all the engineering sor-based work in the world,” he and design we have in this commu- said. “You bring Greg an applica- nity, the value is endless,” Riney tion, and he’s capable of building a said. transducer or a sensor and making This winter and spring, 15 stu- you a prototype.” dents at the College for Creative Dudzik said the partnership Studies volunteered at Henry Ford with Henry Ford fits into Lock- Hospital for 14 weeks, spending heed Martin’s strategy of “teaming time with doctors and patients as with institutions to drive the next they came up with individual de- generation of products in emerg- sign projects under the direction ing areas with major impacts of Vincenzo Iavicoli, chairman of across our customer base.” product design at CCS. “These are technologies that can Four of the student projects have be very enabling and clearly have been put on a fast track for develop- some cutting-edge benefits. The in- ment. (See related story above.) stitute is going to be a real plus for Details have yet to be worked Michigan.” out, but Mahdu Prasad, M.D., a Dudzik said a chief role for the Henry Ford surgeon who will be company will be helping compa- the institute’s director, said the nies land the Small Business Inno- plan is to create at least some for- vation Research funding that is profit companies based on the stu- crucial “to grow the small firms Michigan. dents’ work, with the students hav- that can become our suppliers.” ing some ownership in One name first mulled for the in- The Possibilities are Ageless. partnership with Henry Ford stitute’s name was Alva Park, a ref- Health System, CCS and investors. erence both to the middle name of A state is only as great as the opportunities it presents its residents. That’s The trial CCS program was con- Thomas Edison, a close friend of why Presbyterian Villages of Michigan is proud to help citizens of Michigan to sidered such a success that CCS Henry Ford, and to Edison’s Menlo embrace all the possibilities of a full, vital life as they age. It’s also why we’re pleased to be a part of the Mackinac Policy Conference celebrating innovation and hospital officials will make it Park research center. and reinvention. ongoing. Officials decided to go with the Julio Mayol, M.D., is a robotics Innovation Institute at Henry Ford For more information: 248.281.2020 | www.pvm.org | surgeon at the Universidad Com- while they pursue possible naming plutense de Madrid and a founder rights with benefactors. of the Madrid Network, a health care “The reason we need physical The Presbyterian Villages of Michigan Foundation advances the PVM mission cluster that helps fund and create space,” said Prasad, “is so people by providing philanthropic support for resident emergency needs, innovative biotech startups. of different backgrounds — engi- services and wellness programs for residents and seniors throughout the state. For more information call 248.281.2040 or make a gift online at www.pvm.org Mayol and Prasad were fellows to- neers, physicians and designers — gether at Harvard Medical School in can come together and share their the late 1990s, and in 2008, along ideas and have eureka moments.” with physicians at the University of Tom Henderson: (313) 446-0337, Chicago, founded iSurgitec, a consor- [email protected]. Twitter: tium of medical institutions that fos- @tomhenderson2 DBpageAD.qxp 5/20/2011 4:16 PM Page 1

What’s the connection between 1,14 2 n u r s e s and 21area h spitals?

Oakland Community College. Yes, OCC. Our nursing program is one of the largest, most highly regarded in the country. Spanning two of our five campuses – Highland Lakes and Southfield – we’ve graduated 1,142 nurses in the past five years, more than any other school, college or program in the state. In addition, our working agreements with 21 hospitals in southeastern Michigan mean we’re providing the region with a highly trained, vital source of health care professionals. Why place so much emphasis on the health of our community? Because at OCC, community is our middle name.

www.oaklandcc.edu 20110606-NEWS--0006-RG1-CCI-CD_-- 6/2/2011 5:12 PM Page 1

Page M6 CRAIN’S DETROIT BUSINESS June 6, 2011

Advertisement 2011 Mackinac Policy Conference Remaking Michigan Jill Bentgen is proud of her “Grand” business connections… Snyder, execs launch …and she’s a successful Upper Peninsula entrepreneur who exemplifies how economic gardening is working in Michigan. buy-Michigan initiative BY AMY LANE ments. CAPITOL CORRESPONDENT Export Import Bank, which has Jill Bentgen is the founder of the Mackinac Straits Fish committed to more than double the MACKINAC ISLAND — Gov. dollar value of its investment deals Company in St. Ignace. Rick Snyder and Michigan business with Michigan-based small busi- executives Thursday unveiled a Along with her mom, this married mother of two and her 10 employees supply nesses to reach $187 million by 2015 $3 billion public-private initiative from $75 million in 2009. the Grand Hotel on Mackinac Island, Zingerman’s Deli in Ann Arbor, and other to increase purchasing from Michi- The state and the Michigan Eco- award-winning Michigan restaurants with some of the world’s best smoked gan companies, help businesses ac- nomic Development Corp. and fresh fish fillets. cess additional capital and obtain MEDC President and CEO other assistance. Michael Finney said the purchas- The St. Ignace native spent most of her career in Cincinnati with Procter & The Pure Michigan Business Con- ing element of the initiative is mod- Gamble, where she became disenchanted with the food industry’s focus on nect encompasses new commit- eled after the Midtown Development mass production and engineered ingredients. ments and existing programs and is Initiative in Detroit. In Midtown, part of the state’s “economic gar- three anchor institutions — Henry Jill longed to rediscover the essence of cooking and enjoying the simple dening” drive to help existing Ford Health System, Wayne State Uni- foods she remembered from her U.P. childhood: fresh fish, morel mushrooms, Michigan businesses grow and cre- versity and the Detroit Medical Center wild berries, maple syrup. ate jobs. — joined forces to expand spending The effort includes a $500 million with Detroit-based businesses. In 1994, Jill opened commitment by the state’s two The state will provide businesses the Mackinac Straits largest energy companies to buy with training and tools to maximize Fish Company, using more goods and services from contract opportunities. Michigan-based suppliers. The initiative also includes the a U.S. Small Business Overall, the initiative includes new $100 million pot of money ap- Administration loan participation by: proved in the state budget for to develop a line of Huntington National Bank, which brownfield, historic preservation has committed $2 billion in lending and other economic development 15 packaged smoked Photo: The St. Ignace News and fresh fish products over four years for commercial and projects, replacing tax credits; and that attracted new Jill Bentgen (above), her mother Shirley (right), and the small Michigan-based companies. $25 million for entrepreneurship Mackinac Straits Fish Company supply award-winning customers with their Consumers Energy Co. and DTE and innovation programs that pro- Michigan restaurants with some of the world’s best Energy Co., which each will earmark vide capital and support services to great taste and smoked and fresh fish fillets. an additional $250 million over five early stage Michigan businesses. economical prices. years to purchase from Michigan- In addition, the MEDC’s Michi- based suppliers. gan Collateral Support and Loan Since 2000, Jill’s sales have increased 70 percent and her customers now Stage 2 Innovations LLC, the Participation programs offer include Whole Foods Market stores across the Midwest. $100 million investment fund co- $80 million to generate an addition- founded by former Chrysler Group al $800 million in Michigan bank “We’re not looking to be the biggest,” she says. “We’re looking to be the most LLC CEO Tom LaSorda. The second- loans for businesses in the state. profitable and consistently deliver the highest quality and service.” stage fund, created to help Michi- See gan businesses that have innova- www.michiganadvantage.org/ Jill credits Northern Initiatives (NI) for providing the economic gardening tive technologies accelerate businessconnect. strategies that launched her success. large-scale commercialization, will Amy Lane: (517) 371-5355, collaborate with Troy-based Au- [email protected]. Twitter: NI is a Marquette-based nonprofit community development tomation Alley on placing invest- @alanecdb corporation that helps start and grow Northern Michigan small businesses with loans and technical assistance, promoting entrepreneurism and supporting regional collaboration. NI shares the Michigan State Housing Development Authority (MSHDA) Harvard professor: Make state and Small Business Association of Michigan (SBAM) belief that economic gardening: competitive, the jobs will follow tIs the quickest way to spur Michigan’s economic turnaround. MACKINAC ISLAND — Com- international trade hub. tWill create a “rising tide” that lifts the fortunes of all small businesses. petitiveness, not job creation, The state also includes several should be the state of Michigan’s strong and interlocking clusters, tCharts a pathway toward a genuine culture change in the state. agenda, Michael Porter said including automotive, plastics, Thursday. production technology and metal Visit sbam.org to learn more about economic gardening in Michigan. “This is an issue where there’s a manufacturing. lot of confusion. ... (But) you build “Clusters don’t develop random- SBAM and MSHDA applaud entrepreneurial success stories like Jill Bentgen competitiveness, and then jobs get ly. One cluster gives rise to anoth- and Northern Initiatives. created.” er, which gives rise to another — Porter (See related story, Page that’s how economies grow.” To learn more about the Mackinac Straits Fish Company, go to M1) is the Bishop William Lawrence Areas that states need to focus msfishcompany.com. University professor at the Harvard on include: Business School and has founded Simplify and streamline regu- Better yet, taste her Great Lakes delicacies while dining at the Grand Hotel three nonprofits: the Initiative for a lation and permitting. during the Detroit Regional Chamber’s 2011 Mackinac Policy Conference. Competitive Inner City, the Center for Reduce unnecessary costs of Effective Philanthropy and FSG-Social doing business. Bon appétit! Impact Advisors. The Porter Award Establish training programs for competitiveness in Japan was that are aligned with the needs of named for him. state businesses. Porter said that despite the eco- Focus infrastructure on areas SMALL BUSINESS nomic battering Michigan has tak- best leveraged for productivity. AssociationA of MICHIGAN en, the state has a number of key Support emerging growth Focusing the power of small business. assets. The state still ranks highly companies, which produce most of in terms of innovation, having the jobs. Make it easy for such strong universities and having companies to be in Michigan. several “natural endowment” ad- Support public education. vantages, including being a major — Crain’s Detroit Business 20110606-NEWS--0007-RG1-CCI-CD_-- 6/2/2011 5:21 PM Page 1

June 6, 2011 CRAIN’S DETROIT BUSINESS Page M7

2011 Mackinac Policy Conference Remaking Michigan

MARY KRAMER CONFERENCE BY TWEETS Some highlights from the official Mackinac Policy Conference Twitter feed (#mpc11): @nancykaffer Nancy Kaffer: Geoffrey Canada kills it, gets standing The buzz on biz, Detroit, education ovation from biz community @MackinacConf. MACKINAC ISLAND told Crain’s that he’s sider described city hall as “toxic” up millions of dollars in most dis- #freakingawesome — So what’s different helping to coordinate and predicted another high-level tricts. And that’s the rub — pub- @woodwardsfriend Jeff Wattrick: The this year at the Detroit the same approach departure from Mayor Bing’s in- lic-sector unions fighting for sta- motivational-industrial complex Regional Chamber’s an- within Michigan de- ner circle. Intervention, anyone? tus quo benefits. Maybe they comes to Mackinac: Author Jim nual policy conference? partments to “buy lo- should talk to the private-sector Collins offers bland platitudes A few notes from the is- cal.” K-12 education unions. @woodwardsfriend Jeff Wattrick: land: Finney is tapping Meanwhile, the whispered Surrounded by public radio people in alumni networks of Some people still don’t get it. At question in some corners was: the media room. Afraid of being Michigan universi- a forum on education on Wednes- Will Detroit Public Schools be beaten savagely with tote bags CEO perspective ties to make peer-today, a school board member from around in three years? In five filled w/coffee mugs. Business leaders are peer introductions to West Michigan demanded of State years? @MackinacConf Mackinac Policy downright bullish on former Michiganians Superintendent With enrollments continuing to Conf: There are more engineers in Michigan’s economic who now lead major Mike Flanagan: slide, will it stabilize under new Southeast Michigan than anywhere future. companies around the country to Where is the Emergency Manager Roy else in the world — Allushuski Chief cheerleader and Gov. re-introduce them to their native baseline? How Roberts? Or will expanded school @mattfrieds Matt Friedman: Rick Snyder — last year here as state. “They may not move here, many cuts can choice lead even more students to Mackinac Morning Commute an one of a pack of gubernatorial can- but they might find a new suppli- we endure? nearby suburban schools? easy one. Light foot traffic all the didates and this year as “the Main er,” Finney told Crain’s. (See Amy Where will the For the first time, I’m hearing way up the hill. Event” — is pushing businesses to Lane’s column, Page M9.) final per-pupil knowledgeable people speculate @nancykaffer Nancy Kaffer: Fox 2’s buy products and services within Both initiatives are bound to number in state that the district could evaporate Charlie Langton encourages horse the state. translate into job growth as funding finally and the fight over who controls to let it rip. The good times never To kick it off, he recruited Con- Michigan companies respond to land? the district become moot. Flanagan stop at #MPC11 sumers Energy Co. and DTE Ener- higher demand. Flanagan Mary Kramer is publisher of @DevinScillian Devin Scillian: First T- gy Co. to commit to buying $250 suggested that she and any other Crain’s Detroit Business. Catch shirt seen at Mackinac — “WTF — million in goods and services over school board look at ways to in- her take on business news at 6:10 Where’s The Fudge?” five years from Michigan-based Detroit lags? crease the dollars going directly a.m. Mondays on the Paul W. suppliers. Another buzz is that Detroit — to classrooms by negotiating that Smith show on WJR AM 760 and in @nancykaffer Nancy Kaffer: That’s a great start. specifically Mayor Bing — is not district employees contribute at her blog at www.crainsdetroit.com Someone’s been busy — passing lots of “Save jobs, build a bridge, And Michigan Economic Devel- sharing the momentum the Snyder least 20 percent or 25 percent of /kramer. Email her at mkramer support NITC” roadside signs en opment Corp. CEO Mike Finney administration is showing. One in- their health care costs. That frees @crain.com. route to the island.

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Detroit • Ann Arbor • Bloomfield Hills • Grand Rapids • Lansing

Page M8 CRAIN’S DETROIT BUSINESS June 6, 2011

2011 Mackinac Policy Conference Remaking Michigan Execs’ prescription for state: Keep going forward, innovating

BY MATT GRYCZAN tunity in Detroit ... to create a clus- and China may have lower-cost la- CRAIN’S DETROIT BUSINESS ter of IT businesses that includes bor, but they don’t possess the Compuware and Quicken Loans know-how and infrastructure that MACKINAC ISLAND — At a and offers an alternative to going Michigan has accumulated over panel discussion on what Michi- offshore.” decades of pharmaceutical manu- gan can do to foster its economic Since locating in Detroit, facturing by Pfizer Inc. and others. recovery, top officers of four suc- GalaxE.Solutions has hired 120 “We have an unbelievable op- cessful companies headquartered people to fill a variety of positions portunity to build in this know- in the state offered different laun- including some top executive how, and we can literally beat any- dry lists of what can be done to spots. Bryan said he hopes the one in the world” on the help Michigan regain its former Murray Parfet Davis Bryan company grows to total employ- systematic approach by biomed- status as an employment power- ment of 500 in the next four years. ical and research companies to house. When he moved from Colorado stores/hypermarkets, about half of ness. speed the commercialization of But it all came out the same in to Michigan about 10 years ago, which are in Michigan. Ⅲ October: infrastructure and drug introductions, Parfet said. the wash: act and innovate. Davis said he heard what amount- And although Meijer may end intellectual property. “I figured five years ago that the All four panelists — Meijer Inc. ed to condolences from Michigan up paying more in taxes, Murray Ⅲ November: talent. future for a company like ours was President Mark Murray, MPI Re- natives on his change in residence. said he approved of Snyder’s re- And the panel — moderated by going to be in China ... so I opened search Chairman and CEO William But that somewhat prevalent atti- peal of the universally reviled Sandra Pierce, president and CEO up a 400,000-square-foot laboratory Parfet, InStar Services Group LP tude can change by recognizing Michigan Business Tax. The levy, of Charter One-Michigan midwest with a Chinese company, and we President and CEO Mark Davis the huge potential in Michigan, he which he said amounted to double region — was unanimous in its put our shingle up,” he said. “One and GalaxE.Solutions Chairman and said. taxation on many companies, view that Michigan has tremen- year went by and the results were CEO Tim Bryan — gave Gov. Rick Davis moved InStar, a provider weakened midsize and small busi- dous potential, where even its so subpar that on a cost basis it is a Snyder high marks for setting pri- of disaster recovery services with nesses, which are job-growth en- troubles can serve as opportuni- lot cheaper to do drug developing orities well in his first five months annual revenue of about $100 mil- gines. ties. The panelists gave personal in Michigan than it is in Shang- lion, from Dallas to Detroit last of office. All told, the panelists liked the accounts to the audience of more hai.” year. InStar has 22 offices in U.S. Murray applauded the February monthly hit list that Snyder ticked than 700 to back up the assertion. Parfet and Murray both said cities and completed three acquisi- repeal of the item-pricing law, off before the panel discussion Bryan said GalaxE.Solutions re- they see a sore need for finding ef- tions over the past 18 months. The which required retailers to apply started Wednesday in the Grand lies on attracting young IT work- ficiencies in the cooperation be- company has participated in re- price tags on all the products, as an Hotel: ers who are often drawn to urban tween local units of governments. covery operations after natural example of how Michigan is re- Ⅲ January: economic growth living, and Detroit has remarkably “I sleep in one jurisdiction; I disasters in places such as Joplin, moving unwarranted regulations and development. affordable housing compared with work in another jurisdiction. If I Mo., and Tuscaloosa, Ala., both of on commerce. Because Michigan Ⅲ February: budget and tax re- other cities its size. GalaxE.Solu- eat out, I eat in another jurisdic- which were hit by deadly torna- was the only state that required form. tions designs, develops and in- tion. If I shop, I shop in another,” does during the past two months. item pricing among the five in Ⅲ March: government reform. stalls applications that run secure- Murray said. “I live in the greater Davis said the new administra- which Meijer does business, re- Ⅲ April: educational reform. ly over internal networks and the tion in Lansing is appropriately Grand Rapids area, and I don’t live scinding the law allows his compa- Ⅲ May: passing a budget. Internet. stating that some problems have in any one of these particular ju- ny and other retailers to keep Ⅲ June: international trade and “Before January 2010, I never reached crisis proportions — but risdictions. Most of us live in mul- prices lower for their customers, a new bridge between Windsor and set foot in the state of Michigan,” also has offered courses of action tiple jurisdictions, and they are a Murray said. Detroit. Bryan said. “I came here because I instead of accepting the status quo. mishmash.” Meijer has just under 200 super- Ⅲ September: health and well- saw a tremendous business oppor- One world-class asset of Michi- Parfet said the size of local units gan is its system supporting the of government needs to be revised commercialization of new pharma- based on modern concepts. When ceuticals, Parfet said. He said the boundaries of the 83 counties Michigan and resources in sur- in Michigan were drawn up in the rounding states make up one of the early 1800s, they were sized rough- best geographic areas of the world ly by how far a person could travel for contract research and commer- on horseback in a day. Now there cialization of new drugs. may be as many as 6,500 units of MPI Research, based in Mat- government in the state. tawan west of Kalamazoo, serves Said Parfet: “We are overman- more than 650 companies globally aged, and we don’t need that.” in drug testing research. Matthew Gryczan: (616) 916-8158, Countries such as Brazil, India [email protected]

DISTRESSED REAL ESTATE LOANS FOR SALE

Investment vehicles managed by affiliates of Colony Capital (the international investment firm), in joint venture with the FDIC, have acquired controlling investment interests in over $4 Billion of distressed real estate secured loans. Those loans were formerly owned by failed banks and are secured by various types of real estate, including residential land, retail and other commercial properties, some of which are located in Michigan. A select group of these loans are now available for purchase from the applicable joint venture owner. If you are interested in learning more about this opportunity to acquire distressed real estate loans available for sale, contact us at the email address below for further information. [email protected] 20110606-NEWS--0009-RG1-CCI-CD_-- 6/2/2011 5:58 PM Page 1

June 6, 2011 CRAIN’S DETROIT BUSINESS Page M9

2011 Mackinac Policy Conference Remaking Michigan MEDC aims to bolster MichAgain Harlem Zone CEO presses biz MACKINAC ISLAND and other new MEDC of- are hiring people” that they’re — The Michigan Economic ficers. meeting. to step up on education reform Development Corp. is min- Capitol “Where are the up and Beyond bringing talent back to ing Michigan alumni. Briefings comers going? Right Michigan, the MEDC has launched BY NANCY KAFFER But the costs of incarcerating The MEDC plans this back where you started events to keep young people here. CRAIN’S DETROIT BUSINESS a child whom the system has summer to build on its from,” states a promo- A “Live, Work Detroit” event in failed are astronomically larger, MichAgain program and tion for an upcoming March that brought 250 students MACKINAC ISLAND — Geof- he said. identify business execu- MichAgain cocktail re- into Detroit from 20 colleges and frey Canada’s prescription for “You know what I get for my tives who are alumni of ception in Washington, universities, mostly Michigan education reform is radical: $5,000? I get kids who, starting state universities who D.C., part of a series of schools, included tours of cultural Start early, with comprehensive from birth, are on grade level. I can assist with business national MEDC events. attractions, housing information, intervention, and don’t let up. keep them healthy, I have to get and supplier connec- The June 29 reception a networking event featuring De- That means following at-risk them in college, I have to get tions, work with entre- is billed as a chance to troit executives and young people, children through college, valu- them through college. You may preneurs and help state Amy Lane learn about Michigan’s and opportunities to distribute re- ing incremental change, expect- say, ‘I don’t want to pay for that,’ officials who travel to information-technology sumes. ing support from the business but you can’t say it’s a wasted in- other countries, said MEDC Presi- and life science sectors, and for at- “We wanted to expose them to community and holding teach- vestment. dent and CEO Michael Finney. tendees to connect with other Detroit” and provide them with in- ers accountable. “We realized that for our This effort would be an added alumni from Michigan and “hear formation about job opportunities Canada is president and CEO young people that we’re working component to the MichAgain pro- the latest buzz about our great and living in the city, Cell said. of the Harlem Children’s Zone, with, if these kids aren’t pre- gram, and the MEDC has already state.” “We’re going to be blowing that which serves a 97-block area of pared for college, we guarantee identified some executives who The events are small and inti- up on steroids for the fall. Our ob- Harlem that is rife with at-risk there is no strategy to get them are interested in assisting, Finney mate. Held so far in Boston and jective for the next school year is kids. He spoke Thursday at the employed,” he said. said. Chicago, with more planned for to bring 10,000 students into De- Detroit Regional Chamber’s annual The business community He spoke with Crain’s at the De- Washington and San Francisco, troit from 50 different colleges and Mackinac Policy Conference. should invest in education, Cana- troit Regional Chamber’s Mackinac they connect area alumni and oth- universities around the country.” The programs at Canada’s da said, because without an edu- Policy Conference. ers with company representatives Events are also planned for oth- nonprofit organization start cated workforce — and a popula- The MichAgain program helps from Michigan, said Amy Cell, se- er Michigan communities. with progrms for parents of in- tion with the disposable income individuals and businesses con- nior vice president of talent en- In Detroit, a Sept. 28 Live, Work fants and toddlers, and continue to buy the products businesses nect, and reconnect, with Michi- hancement at the MEDC and a for- Detroit event will conclude Crain’s through prekindergarten educa- sell — business has no future. gan, including attracting young mer Ann Arbor Spark vice House Party, an event that show- tion and K-12 education, with the A longer version of this story can talent back to Michigan. president, in a recent interview cases homes in the city. goal of seeing every child go to be found at crainsdetroit.com. The program’s genesis was an with Crain’s. Amy Lane: (517) 371-5355, college. It’s expensive — $5,000 Nancy Kaffer: (313) 446-0412, initiative started at Ann Arbor Finney said: “We’re starting to [email protected]. Twitter: per child above the cost of the ac- [email protected]. Twitter: Spark, the former home of Finney see connections, where companies @alanecdb tual education, Canada said. @nancykaffer

Not just healthcare, but healthier communities

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Page M10 CRAIN’S DETROIT BUSINESS June 6, 2011

2011 Mackinac Policy Conference Remaking Michigan UAW president: Auto crisis taught Robot Town to seek planning union to adopt pragmatic style

BY NANCY KAFFER Were businesses taxed at 1950s CRAIN’S DETROIT BUSINESS levels, King said, the country grant, tackle site selection would take in $500 billion in addi- MACKINAC ISLAND — The tional revenue. And a 35 percent 21st century version of the United tax on the nation’s highest earn- BY CHAD HALCOM gan Economic Development Corp. have Auto Workers recognizes that suc- ers would bring in $18 billion in CRAIN’S DETROIT BUSINESS held discussions with more than 70 We’re ready to businesses and research organiza- cess for its members is vitally revenue — enough to fund the Organizers of the proposed “Ro- “ tions in recent months — including connected to the success of the federal Pell grant program, bot Town” robotics research con- move much faster. about 50 from Southeast Michigan automakers that employ them, which helps low-income students sortium and laboratory test center ” — about participating in Robot President Bob King said at the pay for college. Mackinac Policy Conference. hope to send a formal application Mark Salamango, 6 Zulu Inc. Town, first proposed last fall by “A moderate, pragmatic ap- this week for a planning grant James Overholt, senior robotics re- During his speech, King told proach to the budget would not from the New Economy Initiative for In the meantime, 6 Zulu execu- search scientist for the U.S. Army at attendees the new mission of the sacrifice education,” King said. Southeast Michigan. tives and other project participants the Tank-Automotive Research, Devel- UAW is to “join with employers The UAW president said that Troy-based software technology were at the 2011 Mackinac Policy opment and Engineering Center in to produce the best-quality prod- in the aftermath of the auto in- and government contracting con- Conference hosted by the Detroit Warren. uct at the best value for con- dustry bailout, the nation is look- sultant firm 6 Zulu Inc. has finished Regional Chamber last week, mak- An initial team of project partici- sumers,” King said. ing to see whether unions and au- writing a seed and planning grant ing a business case for Robot Town pants and a leadership structure “Our union has learned many tomakers have learned lessons or request to the New Economy Initia- to Detroit Mayor Dave Bing and could be in place later this year, and lessons from the crisis in the whether they’ll slip back into old tive with advice from management other city leaders, Salamango said. organizers may seek a combination auto industry,” he said. “We ways. He said the UAW is com- at TechTown, the Wayne State Univer- “We’re ready to move much of federal grants or private invest- have decided to adopt fundamen- mitted to collaboration. sity technology park and business faster,” he said. “We have the ideas, ment for development funding, tal, radical change.” “An America without unions incubator, said Mark Salamango, and we know 2014 is just around the Overholt has said. Previously, he said, the UAW’s is an America with no middle project manager and co-organizer corner. Right now, it’s a matter of TechTown General Manager relationship with employers has class,” he said. “If we don’t have of Robot Town at 6 Zulu. hoping the city embraces us. Leslie Smith said the organization been characterized by mistrust, unions, we’re no longer a beacon The initiative, a nonprofit col- “By the time we have worked has been coordinating with Corey and that has led to a “litigious for democracy and freedom in laboration of mostly local private through an initial planning grant, Clothier, senior strategist at 6 Zulu, and time-consuming” grievance the world. I urge you in the busi- foundations that have committed we would also like to have worked on a “reasonable business plan and culture. ness community to partner with to invest $100 million in local eco- through site selection and be able request for funding” to help vet the “The 21st century UAW is us in the search for common nomic development, could make a to move forward at entering a spe- Robot Town concept. adopting a more nuanced and ground and common good in so- decision on the $100,000 request be- cific location.” Under the current development constructive approach to global ciety.” fore the end of summer. TechTown, 6 Zulu and the Michi- plan, a preliminary version of Ro- trade and development and is After his address, King was in- bot Town could be in place by Octo- committed to saving and growing terviewed by John Rakolta Jr., ber 2014 as a local showpiece for the industrial base with good president and CEO of Detroit- guests attending the Intelligent jobs in America,” King said. based Walbridge Aldinger Co. Transportation Systems World But King warned that the busi- Rakolta suggested that King’s Congress at Cobo Center. ness community must eschew an uplifting message was undercut Salamango said organizers want extreme right-wing ideology that by “combative” union efforts in to house Robot Town in Detroit, al- he said threatens the country’s other states. But King said he though some Ann Arbor locations well-being. couldn’t think of any combative are also feasible for their proximity “Let’s look at the right-wing UAW moves. to the University of Michigan and agenda and its negative impact on Rakolta questioned King about some spinout technology firms that business,” he said. One element of the UAW’s attempts to unionize have committed to participate. that agenda, he said, is cutting tax- workers at the foreign automak- A strong Detroit location, be- es on high earners at the expense ers that compete with the Detroit cause of options for test track of education and infrastructure. 3. King said the UAW is ap- space, could be the former Michi- Without a strong educational proaching management at those gan State Fairgrounds along system, King said, “We will not automakers to open a dialogue Woodward Avenue, he said, produce the skilled labor force about the right to unionize. though a proximity to robotics and we need to compete in a global Rakolta wanted to know if research businesses could be more economy. We can’t cut on the dol- workers would be able to vote on challenging there. A location in lars and expect to be globally unionization via a secret ballot. TechTown is another possibility, competitive on education. With- King said secret ballots are part organizers have said. out investment in infrastructure, of the UAW’s new platform. Chad Halcom: (313) 446-6796, in our transportation system ... Nancy Kaffer: (313) 446-0412, [email protected]. Twitter: our distribution system, we can’t [email protected]. Twitter: @chadhalcom support business growth.” @nancykaffer New Economy Initiative wants international students to stay

BY TOM HENDERSON or come here to study,” said Jeff The report, written and based on CRAIN’S DETROIT BUSINESS Mason, URC executive director, in research by the East Lansing-based a press release. Anderson Economic Group, said: The New Economy Initiative of The program is based on recom- Member universities spent Southeast Michigan has awarded a mendations from a study last year nearly $74 million on research pro- three-year, $450,000 grant to the Uni- by the NEI. The study found that: jects with a strong IT focus in 2010. versity Research Corridor to launch a Michigan has more than 23,500 IT companies employ 3.5 per- program to encourage internation- international students, the eighth- cent of the state’s workforce or al students to stay in Michigan largest concentration in the U.S. about 135,000 workers, and IT is a when they finish their education. International students con- key underpinning for the state’s The Global Detroit International tribute nearly $600 million annual- industrial activity and growth. Student Retention Program, an- ly to local economies. IT employees in the state earn nounced Thursday at the Mackinac Immigrants file nearly 50 per- an average of about $20,000 more Policy Conference, will help stu- cent of Michigan’s international than other private-sector workers. dents navigate barriers to legal im- patents and are three times more The University Research Corri- migration and help recruit em- likely to start a business. dor is a coalition of the University of ployers to give them jobs. Also Thursday, the URC said its Michigan, Wayne State University and “Michigan’s reinvention re- fourth annual report shows the Michigan State University. quires us to retain the best talent worth of supporting the informa- Tom Henderson: (313) 446-0337, we can, regardless of whether tion and communication technolo- [email protected]. Twitter: those students hail from Michigan gy industry. @tomhenderson2 20110606-NEWS--0011-RG1-CCI-CD_-- 6/1/2011 2:12 PM Page 1

June 6, 2011 CRAIN’S DETROIT BUSINESS Page M11

2011 Mackinac Policy Conference Remaking Michigan Conference designed to be fast-paced, results-oriented

BY AMY LANE This is a business conference with more globally competitive. global competition is mentioned. CAPITOL CORRESPONDENT public-policy implications. Getting “We wanted to celebrate, A, the “The business attendees at this the active involvement of C-suite in- renaissance of the auto industry, meeting are in so many different LANSING — Faster-paced, more dividuals from all over the state … and B, highlight the auto industry’s sectors, it’s hard to make general- CEOs, more relevance. was a primary goal of ours.” importance … how it’s still going to izations that apply to everyone, but Like Michigan’s governor, the Another prominent conference continue to be important to the … none of us are in a business that Detroit Regional Chamber’s Mackinac element: the auto industry, repre- Michigan economy,” Baruah said. doesn’t have impact and effect from Policy Conference this year has a sented among both speakers and Murray said that during this changes in the global economy.” sense of urgency, said chamber panels. The focus will be on how the year’s conference, compared to Amy Lane: (517) 371-5355, President and CEO Sandy Baruah. auto and advanced manufacturing previous years, “there may be [email protected]. Twitter: In fact, Gov. Rick Snyder was in- industries can help make Michigan more times when the reality of @alanecdb Baruah McClure volved early on, in conversations with Baruah and other chamber executives that began after Snyder’s election, said Geralyn Lasher, Sny- der’s director of communications. “I think they (Snyder and Baru- ah) had some really good conversations about the direction to take the conference in … how does the strategy change, to be much more action- oriented,” Lasher said. “And I think the governor and Sandy were very much on the same page with that.” Baruah said Snyder has been very engaged in the conference, and when the chamber began talking with Snyder in November, “he was very appreciative of our existing direction to change the conference to be more action-oriented and results-focused.” He said conversations with Sny- der resulted in changes to the agenda, which Baruah did not specify. Snyder also expressed interest in spending time with some of the national speakers and being in more than just the traditional keynote governor’s session, Baruah said. He said the conference themes — rebuild, reinvent, re-energize — build around Snyder’s drive to reinvent Michigan. He said the pace of the agenda, and a business-and-results orientation were key aspects for him and conference chairman Charles “Chip” McClure, chairman, CEO and president of Meritor Inc. “Chip McClure and I, when we took over the conference, this was a high priority of ours,” Baruah said. There are several changes in this year’s gathering of representatives from business, government, nonprofit, education and other arenas, including a tight agenda with fewer breaks and no concurrent sessions. “Chip and I believe that if a program or a panel or a discussion is- n’t worth having in the main room with everyone attending, it’s not going to be on this year’s agenda. And we’ve stayed true to that prin- ciple,” Baruah said. He said that for the first time a statewide CEO advisory committee helped craft the agenda. Committee member Mark Murray, president of Grand Rapids-based Meijer Inc. and a scheduled conference panelist, said the group provided an effective opportunity to provide input, react to ideas and offer ideas. Baruah said the advisory committee also reached out to other CEOs and business partners to encourage their participation. The conference has been criti- cized in the past for lack of CEO presence. It’s something that “we’ve moved very strongly to address,” Baruah said. “We are a business organization, and this is a business conference. 20110606-NEWS--0012-RG1-CCI-CD_-- 6/1/2011 5:04 PM Page 1

Page M12 CRAIN’S DETROIT BUSINESS June 6, 2011

2011 Mackinac Policy Conference Remaking Michigan State wants to expand profitable fracking; environmentalists object BY JAY GREENE more of a part in solving Michi- partment of Natural Resources pur- want to slow down and even stop shale wells range from 500 to 2,000 CRAIN’S DETROIT BUSINESS gan’s energy needs, said Rep. Ken chase land or create improved fracking, mainly over concerns feet deep. Horn, R-Saginaw, chairman of the recreation and environmental of- that drilling is going deeper and But in the past year about 18 Fracking in Michigan appears House energy and technology com- ferings. deeper and could lead to contami- leases have been let at deeper to be on the upswing. mittee, in a recent interview with But once that $500 million is nation of underground freshwater depths of about 10,000 feet in Hydraulic fracturing, or frack- Crain’s Detroit Business. reached next month, revenue from reservoirs. northern Michigan’s Collingwood ing, is a process by which water, Horn said that in the next week oil, gas and other mineral produc- “The fluids used in fracking are and Utica shale areas. sand and dozens of chemicals are or two he will ap- tion and leasing known to contain Because deeper injected at high pressure deep into point a subcom- on state-owned over 500 danger- wells require the ground to fracture the shale mittee to study We want to lands will flow to ous chemicals, The fluids used more water, at rocks and force out clean natural how to use the “ the State Park En- which can conta- “ 3 million to 5 mil- gas. state’s natural gas continue this path dowment Fund, minate drinking in fracking are lion gallons, some Steve Chester, former director and oil reserves said Steve DeBra- water supplies environmental of the state De- more effectively because natural gas bander, DNR’s and the water known to contain groups have partment of Envi- as not just a rev- manager of used for agricul- raised new objec- ronmental Quality enue source but can be a major grants manage- ture, and can over 500 dangerous tions. Shallow wa- and now an en- also to help ad- ment. even poison live- ter wells only use vironmental at- dress the state’s resource for homes Grants from stock,” said Food chemicals. about 50,000 gal- torney with De- energy needs. the trust fund for & Water Watch in ” lons, Fitch said. troit-based Foley “Fracturing and transportation land purchases a statement. Food & Water Watch “We have 25 & Lardner LLP, will be one of the and other im- Some environ- people bird-dog- said the state issues,” Horn in this state. provements will mentalists charge that deep-well ging (these wells),” Fitch said. has done a very said. “But it will ” be limited only to fracking can even create small “Some people are concerned about good job in be part of a com- Rep. Ken Horn, R-Saginaw interest earned earthquakes. extending upward to aquifers, but policing and Chester prehensive ener- annually from the State officials scoff at such dan- there have been no problems so protecting the environment from gy plan that Michigan needs to de- $500 million, DeBrabander said. gers and say that Michigan’s deep- far.” hydraulic fracturing over the past velop.” There are also environmental earth fracturing practices have Between 2005 and 2009, the na- 50 years. “We derive income from land concerns from the expansion of hy- been totally safe since the 1960s. tion’s 14 leading natural gas “There was a lot of money netted leases and royalties that are filling draulic fracturing. “Michigan is perfectly safe, and drilling service companies used last year for the state — $178 mil- up the trust fund,” he said. “We Last year, Michigan auctioned we have safeguards in place,” hydraulic fracturing fluids con- lion — from the gas companies,” want to continue this path because off 120,000 acres of state land for Horn said. “This does not mean we taining 29 different chemicals reg- Chester said. natural gas can be a major re- such fracturing. won’t look for improvements in ulated under the Safe Drinking “Because there is more money source for homes and transporta- This year the leasing could more public safety.” Water Act as potential human car- to be made, especially with high tion in this state.” than double with more than Saulius Mikalonis, an environ- cinogens, according to a congres- oil prices now, legislators will Leasing underground land to 500,000 additional acres available mental attorney with Plunkett sional report released earlier this want to move forward” and lease gas and oil companies has helped to the highest bidder, although Cooney PC in Troy, said Michigan’s year by Democrats on the U.S. more land to operators, mostly in build up the Michigan Natural Re- DNR has yet to confirm the 100-page regulations are fairly House Energy and Commerce Commit- the northern Lower Peninsula, sources Trust Fund to a pot of acreage to be made available. strict in how companies can con- tee. Chester said. nearly $500 million. But some environmentalists — duct hydraulic fracturing. Chemicals found in the fracking The state has immense reserves The trust fund is used to help lo- including the Clean Water Action “They can’t use surface water; water include benzene, toluene, of natural gas that need to play cal governments and the state De- Council and Food & Water Watch — they have to replace water taken xylene, and ethylbenzene. out with water pumped back in; On May 25, the state DNR issued wells have to be located safe dis- new permitting instructions that tances from one another to avoid require gas and oil companies to cross-contamination; and casings disclose the chemicals they use in are required for the wells,” he the high-pressure injections. We salute David J. Boor named to said. The companies have until June “Fracturing is done all over the 22 to start supplying the required state with landowners and the state records that also include volumes Barron’s Top 1,000 Advisors getting money,” he said. “It is a of water injected, amount of water large revenue stream for the state, recovered and disclosure of any especially when energy prices rise known problems with the fractur- We applaud David J. Boor and his most significant accomplishment— and natural gas” becomes more at- ing process, Fitch said. tractive economically. Food & Water Watch, while sup- winning clients’ trust. David has received this honor for the second But Mikalonis said hydraulic porting the additional rules, said consecutive year. fracturing has run into problems requiring the companies to dis- with groundwater supplies in close chemicals does not make The BLS Group Pennsylvania and Ohio, mostly be- fracking any safer. UBS Financial Services Inc. cause those wells are shallower and “This will give us information to the casings were not as well made. respond to (potential) spills,” Fitch Hal Fitch from the DEQ’s Office said. ® David Boor, CRPC of Geological Survey said Michi- Jay Greene: (313) 446-0325, Senior Vice President–Investments gan’s more than 10,000 Antrim [email protected]

Daniel Lingeman CRPC®, Vice President–Investments CRAIN’S SEEKS SALUTE TO ENTREPRENEURS NOMINATIONS ® Mark Steinberg, CFP , Vice President–Investments Do you know an entrepreneur who deserves applause? Jonathan M. Modiano, Account Vice President Entrepreneurs make up a growing portion of Michigan’s employment base and are of increasing interest to the 32300 Northwestern Highway, Suite 150 local business community. Crain’s Detroit Business will publish in its Nov. 21 issue a “Salute to Farmington Hills, MI 48334 Entrepreneurs.” 877-951-1200 These awards will recognize problem-solving, innovation and business acumen among entrepreneurs and second-stage companies. Winners will also be honored at an awards event on Nov. 17, at Greektown Casino ubs.com/team/theblsgroup ab Hotel. Our goal is to highlight the next generation of Barron’s is a registered trademark of Dow Jones & Co. Chartered Retirement Planning CounselorSM and CRPC® are registered service marks of entrepreneurial leaders who are helping to reinvent ® the College for Financial Planning®. CFP is a certification mark owned by Certified Financial Planner Board of Standards, Inc. As a firm providing Southeast Michigan. Nominations are due by July 22. wealth management services to clients, we offer both investment advisory services and brokerage accounts. Advisory services and brokerage services are separate and distinct, differ in material ways and are governed by different laws and separate contracts. It is important that clients understand Visit www.crainsdetroit.com/nominate to submit a the ways in which we conduct business and that they carefully read the agreements and disclosures that we provide to them about the products candidate or for more information. Questions? Contact or services we offer. For more information clients should speak with their Financial Advisor or visit our website at ubs.com/workingwithus. UBS Financial Services and its affiliates do not provide legal or tax advice. UBS Financial Services Inc. is a subsidiary of UBS AG. Gary Anglebrandt at (313) 446-1621 or h6#4`'JOBODJBM4FSWJDFT*OD"MMSJHIUTSFTFSWFE.FNCFS4*1$. 2725 1.32_Ad_6x6_DT0427_SteM [email protected]. 20110606-NEWS--0013-RG1-CCI-CD_-- 6/1/2011 4:23 PM Page 1

June 6, 2011 CRAIN’S DETROIT BUSINESS Page M13

2011 Mackinac Policy Conference Remaking Michigan Biz execs see a brighter future for Michigan

BY CHAD HALCOM ness owner, the industry that I do tiny or outcome.” CRAIN’S DETROIT BUSINESS HOW BUSINESS SEES MICHIGAN know is improving right now, and Barr said business leaders seem I’m sticking with what I already less than convinced of Gov. Rick A survey by Crain’s Detroit Business and Detroit-based law firm Honigman Have we learned anything? know. And so I’m more opti- Snyder’s plans to do away with tax Miller Schwartz and Cohn LLP and conducted by Lansing-based Epic-MRA The hardships of the recent glob- Corp. sampled the business community’s perceptions about Michigan’s mistic.” incentives as a means of encourag- al economic recession seem to economic outlook and assets: That’s the sort of outlook that ing economic growth, and noted have taught a few key lessons in Justin Ballard, owner and presi- that former Gov. John Engler ulti- valuing universities, mass transit, dent of Waterford Township-based mately had to reverse course on a Do you think that Michigan’s economy will improve in the next year, get diversification and the need for a worse or remain about the same? JM Ballard International Inc., who similar plan to do away with in- vibrant urban center, according to participated in the survey, said he centives in the 1990s. May 2011 May 2009 a recent survey for Crain’s Detroit has seen among his manufactur- Some 68 percent of respondents 56%: Improve 18%: Improve Business and Honigman Miller ing customers. supported replacing the Michigan Schwartz and Cohn LLP by Lansing- 35%: Remain 34%: Remain JM Ballard sells used industrial Business Tax with a 6 percent tax about the same about the same based Epic-MRA Corp. equipment to manufacturers, usu- on profits of “C” corporations, a The survey of 300 responding 8%: Get worse 47%: Get worse ally bought from other businesses. change passed by the Legislature Southeast Michigan company (1% undecided) (1% undecided) Ballard said several of his cus- and signed into law by the gover- owners and executives last month tomers have diversified into de- nor last week. And 43 percent see found a business community that’s Thinking about your business in the next year, do you think the prospects fense or biomedical industries but across-the-board business tax cuts optimistic about the future but for your business will improve, get worse or remain about the same? most need new equipment because as “essential” to creating econom- also generally bullish on Detroit’s May 2011 May 2009 traditional manufacturing vol- ic clusters of related industries old-economy virtues. 61%: Improve 18%: Improve umes have grown. and institutions that make Michi- “What impressed me was the 32%: Remain 34%: Remain “The Michigan economy specifi- gan competitive — more than any level of agreement that, as Detroit about the same about the same cally is coming back with the auto- other policy initiative suggested in goes, so goes the state. We cannot 6%: Get worse 47%: Get worse motive industry. I’m on the the survey. abandon the urban centers,” said (1% undecided) (1% undecided) ground level and I can see that,” he But 70 percent also voiced at Epic-MRA co-founder John Ca- said. “All the customers I talk with least some support for targeted tax vanagh. “Whether you agree with are doing extremely well, know breaks like incentives, and more Which of the following industries do you believe are best suited to provide that, eight out of 10 (81 percent of real growth in the Michigan economy and provide good paying, that they’re through the worst of it respondents believed the money respondents) did.” sustainable jobs in the future? and they’re at (production) capaci- that businesses save under Sny- A total of 65 percent of respon- ty and need the new equipment to der’s plan generally would not go dents voiced at least some optimism 18%: High-tech manufacturing 3%: Entertainment and deal with new business volume. toward job creation (28 percent) filmmaking about the city and its ability to re- 15%: Automobile industry-related “And those companies that did- than believed it would go toward build in the near future, and only jobs 3%: Life sciences n’t make it (through the recession) jobs growth (10 percent). 1 percent mentioned that a negative 13%: Research and development 2%: Agriculture have left a gap in business that the “Taxes are a factor when busi- perception or reputation for the city overall 2%: Computer sciences other companies are trying to nesses decide where to invest, but was a liability when trying to re- 12%: Health care 1%: Homeland security grow to fill in.” it’s not number one. And I have a cruit talent from outside the region 10%: Alternative energy 1%: Professions, such as Only 50 percent of respondents number of clients who expect to in the survey conducted May 10-13. 6%: Battery technology accounting and law in May said talent recruitment is pay more under the new tax than That’s compared with 18 percent 5%: Bioscience 1%: Tourism and hospitality hurt by a notion that Detroit’s for- under MBT,” he said. of respondents who said it was a de- 4%: Service sector 4%: Other/undecided/refused tunes are too entwined with the “There’s a lot of assumption go- tractor in talent recruitment during auto industry, versus 70 percent of ing into the belief that by lowering a similar survey in November 2006. What is the single most effective thing to mention as a selling point when respondents who felt that way in tax rates you yield jobs. But in the As a whole, 56 percent of local recruiting talent from outside the region? 2006. long term it could be more benefi- business leaders said they expect- Nov. 2006 May 2011 Much more likely to be draw- cial because it makes the business ed the Michigan economy to im- Low housing costs 9% 11% backs in 2011 were lack of mass more competitive and their pric- prove in the next year, and only Quality universities, training resources 22% 28% transit (54 percent versus 40 per- ing more competitive.” 8 percent expected it to worsen. cent in 2006) or lack of a vibrant As a whole, slightly more re- Low cost of living 12% 16% Some 61 percent of respondents central city (60 percent versus spondents believed access to re- also expect their own business to Midwest values, friendly communities 18% 16% 45 percent in 2006), while some search and development funding improve over the same period, and Abundant recreational opportunities 11% 11% long-held beliefs about Detroit was essential or important for jobs only 6 percent expected business Good K-12 school systems 11% 5% held constant, like high crime growth (82 percent) than sweeping to slow or face a downturn. Strong racial and ethnic diversity 9% 3% (75 percent versus 69 percent in tax cuts to business (77 percent). In a similar May 2009 survey, Undecided 8% 10% 2006) and a suffering local econo- Dee Davey, owner and senior 18 percent of respondents were my (76 percent versus 75 percent). consultant at Creative Ideas Market- positive on both the state economy During his campaign, Gov. Rick Snyder said the economic success of Stronger lures in 2011 were the ing LLC in Plymouth Township, and their own businesses, while Detroit is tied to how successful the state of Michigan will be. Do you affordable cost of living (55 percent said she believed both play a sig- 47 percent of respondents expected agree or disagree that “as Detroit goes, so goes the state?” versus 32 percent in 2006) and low nificant role, but also believed both to worsen. housing costs (55 percent versus Michigan is growing again by di- But while optimism was on the 38 percent), while local universi- versification into services and rise, 33 percent of business leaders ties and traditional Midwestern some high-tech industries. in the latest survey saw either au- 61% 20% 6% 12% values grew more modestly in ap- “Ann Arbor is a good role model tomotive-related jobs or “high-tech Strongly agree Somewhat agree Somewhat Strongly disagree pealing to outside talent, com- for the change. There’s an open- manufacturing” as the likely dri- disagree pared with five years ago. ness of the community and the re- ver of near-term growth in the Note: 1% undecided. Question asked in May. Business leaders also said they spect and willingness to help one state. Cavanagh said some of the were much less likely to promote another,” she said. “There’s a respondents could have defined How would you rate your outlook toward Detroit and its ability to rebuild K-12 education (38 percent versus great sense of cohesion; and if my economically? high-tech manufacturing to in- 55 percent in 2006) or ethnic diver- business can help yours, they col- clude the auto industry, as in some sity (51 percent versus 59 percent) laborate. There’s a great willing- other responses like overall re- as local assets. ness to work together.” search and development (13 per- Richard Barr, partner and co- But Ballard said that whether 17% 48% 21% 13% cent see it as a growth driver) or Very optimistic Somewhat Somewhat Very chairman of the investment incen- tax cuts or research and develop- battery technology (6 percent). optimistic pessimistic pessimistic tives and tax savings group at ment will generate more jobs In non-automotive segments, only Note: 1% undecided. Question asked in May. Honigman, thought business lead- comes down to the criteria like health care (12 percent) and alterna- ers’ views about taxes and recov- time frame. tive energy (10 percent) got any real ery were illuminating, and said he “In the short term, yes, the tax attention as future growth drivers mean business leaders are more found a sustainable manufactur- didn’t read too much into the fact reforms would be helpful in luring in the state. Most others — life sci- hopeful about Michigan recovering ing base now, even if it’s much less they were less emphatic about dis- some new businesses or invest- ences and medical devices, informa- along with the Detroit 3 automak- prosperous and doing less for total tancing Michigan from the auto in- ment,” he said. “But long term, it’s tion technology, homeland security ers than through successful diver- employment and wages than it dustry. the research and development and defense, service sectors or film- sification of its industry base or in once did,” he said. “I think that has to do with how funding that’s more vital to spark making and entertainment — got workforce retraining, one of the “Maybe when it comes to the the industry has downsized,” he entrepreneurship.” less than 5 percent apiece. key themes emphasized during the new optimism there’s more em- said. “So we are diversified and Chad Halcom: (313) 446-6796, Cavanagh said the survey data as automotive downturn in 2008-09. phasis on auto and less attention less focused on it (automotive), [email protected]. Twitter: a whole could be interpreted to “That (automotive) industry has to diversifying. If I’m a local busi- maybe not by design but by des- @chadhalcom 20110606-NEWS--0014-RG1-CCI-CD_-- 6/1/2011 4:18 PM Page 1

Page M14 CRAIN’S DETROIT BUSINESS June 6, 2011

2011 Mackinac Policy Conference Remaking Michigan Stakes high Changes in state regulations have some folding

BY DANIEL DUGGAN THE REQUIREMENTS HOW IT WAS CRAIN’S DETROIT BUSINESS A company doing non-gaming business with Before the changes in After five years of selling hand- any of Detroit’s three casinos is faced with 2009: made American flags to MGM Grand different costs and disclosure levels based Ⅲ $600 to $49,999 in Detroit, William Miles stopped do- on their casino sales over 12 months: sales: Submit business ing business with the casino in Ⅲ Under $5,000: No disclosure. name, employer 2009. Ⅲ $5,000 to $299,999: Pay $200 up front identification number and He wanted to keep selling flags ($100 annually), submit to a background address. No background check, allow the gaming board to inspect check or financial to the casino, and the casino want- the personal income tax statements of all information involved. ed to buy them. owners of the business with more than a Ⅲ $50,000 and up: It was a set of changed state reg- 1 percent ownership stake. Submit to an in-depth ulations for companies that work Ⅲ Over $300,000: Pay $5,000 annually, background check for for the casinos that prompted the submit to an in-depth background check for criminal and financial decision. criminal and financial history, and not be history, and not be allowed Companies doing more than allowed to make political campaign to make political campaign $5,000 in sales now must submit a donations. donations. stack of paperwork and authorize the Michigan Gaming Control Board to review their personal income tax statements to do non-gaming casino work. SHRINKING POOL The changes, which gaming officials say are needed to keep track Number of companies licensed to do non- 3,314 gaming work with Detroit’s three casinos: of those with business interests in the casinos, have become contro- 2,885 versial in the local gaming world. 2,639 Casinos are now left with a shrinking pool of companies to hire for 2,365 2,214 goods and services. “For the amount of business I 1,887 1,880 was doing, I looked at all the hoops 1,701 they were making me jump through, and it just wasn’t worth 1,327 it,” said Miles, owner of the Claw- son-based American Flag and Banner Co. Inc. He wasn’t alone. In 2009, there were almost 3,300 companies licensed to do work for the three Detroit casinos. By 2011, it was down to roughly 1,300, an all-time low. ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 The drop wasn’t just from companies objecting to the regulation; there were companies whose con- GLENN TRIEST struction contracts ended, compa- William Miles, owner of American Flag and Banner, said he stopped doing nies whose goods were no longer business with MGM Grand because of changed state regulations. “I looked at all the hoops they were making me jump through, and it just wasn’t worth it.” COMPARISON needed by the casinos and some Here’s a sampling of how states regulate their gaming industries: that have gone out of business. Protection, not prevention centage and that it is impossible State Cost Staff Casinos Out of 24 companies contacted for the gaming board to know the Michigan $21.5 million 95* 3 by Crain’s that dropped off the list The steep drop comes from a re- decision-making process for 2,000 New Jersey $75.4 million 220 11 from 2009 to 2011, 12 were upset by view of the regulations as well as companies. Nevada $48.6 million 462 260 the regulations, according to inter- purging the list of companies that A source at one Detroit casino Pennsylvania $38.3 million 295 9 views with or information provid- no longer do casino work, such as said 138 suppliers that dropped off ed by casino industry sources. Sev- maintenance, food service and Louisiana $25.6 million 250 22 the list had done work for the casi- en companies said they left the marketing, said Richard Kalm, ex- no within the previous 12 months. Missouri $20.3 million 211 12 system for reasons other than the ecutive director of the gaming con- “And the problem is also the Illinois $19.2 million 156 9 regulations, and five did not re- trol board. State gaming law does companies we’re calling right now Indiana $12.3 million 242 15 turn calls. not apply to tribal casinos. for business and they’re saying Colorado $11.3 million 72 40 Representatives from all three The number of companies that ‘thanks, but no thanks,’ ” the *114 state employees budgeted casinos declined to comment out of stopped doing casino business source said. Ⅲ States that require a license for non-gaming suppliers: 4 (Michigan, fear of retribution by the gaming strictly due to regulation is less The changes enacted in 2009 came Kansas, Louisiana and Pennsylvania) board. Many companies that have than 2 percent, a number generat- at the end of a long look at how the Ⅲ States that don’t: 9 (including New Jersey, Nevada, Indiana and Illinois) done gaming business in the past ed by interviews with companies, gaming control board tracks compa- also declined to speak publicly out he said. nies doing casino work, said Kalm, Source: Annual reports from individual states’ gaming commissions, Michigan Gaming Control Board public disclosures of concern they’d run afoul of state But casino industry sources say who was hired in 2007 after a career gaming regulators. it is actually a much higher per- in law enforcement. 20110606-NEWS--0014,0015-RG1-CCI-CD_-- 6/1/2011 3:24 PM Page 2

June 6, 2011 CRAIN’S DETROIT BUSINESS Page M15

“ They were asking for “ Making sure that someone is “ I just can’t take all that information about the owners’ not a felon and that time to do the paperwork and spouses. That was something they have paid their not know there’s going to be they just weren’t interested in income taxes is a business at the end of it.” passing along. reasonable thing to Valerie Robinson, ” Vision Consultants and Promotions LLC Matt Widenmier, look at. StageRight Corp. ” Richard Kalm, Michigan Gaming Control Board cards on supplying casino business in Detroit

Before 2009, a company doing Dave Oder makes.” “On average, the casinos are uti- less than $50,000 in casino work Likewise, StageRight Corp., a lizing between 40 percent to 47 per- needed just to submit its name, Michigan’s regulations Clare-based provider of portable cent Detroit-based and/or Detroit address and employer identifica- staging, seating and risers used for resident businesses,” she said via tion number. More than $50,000 in shows, stopped doing casino busi- email. work required a deep background among nation’s strictest ness when the owners’ personal in- check for all owners of the compa- come tax statements were request- ny. Finding the right balance Michigan’s regulations for ed in 2009. But it was coming to light that companies that do business with “Our ownership group wasn’t Regulating the three casinos in under the old system too many Detroit’s casinos are among the comfortable in providing some of Michigan along with the 1,700 com- companies under $50,000 had own- To start off, strictest in the country, gaming the information they were asking panies doing business with them is ers with felony records, unpaid “ attorneys and analysts say. they’re worried that for,” said Matt Widenmier, region- a balancing act, said Fred Cleland, taxes or situations where “bad op- David Stewart is an attorney al sales manager. “They were ask- deputy director of the licensing di- erators” changed the company with Washington, D.C.-based Bugsy Siegel is ing for information about the own- vision for the gaming board. name to keep doing business after Ropes and Gray LLP, which repre- ers’ spouses. That was something “On one hand, we need to protect supplying tainted meat or other sents gaming companies all over going to move right they just weren’t interested in the integrity of gaming,” he said. bad products, Kalm said. He said it the country. He said that most passing along.” was a series of small problems that in. They regulate “On the other, we want to be busi- state gaming regulations start Companies that stopped doing added up. ness friendly. This is a process that very strict and relax over time. He would not disclose specific anything that casino work weren’t all concerned we are constantly examining.” “To start off, they’re worried companies that were investigated. with privacy, however. He said the instances of compa- that Bugsy Siegel is going to In 2009, a process was created to moves. Tim Jorgensen, general manag- nies leaving the casino business move right in,” he said. “They increase the sales level needed for ” er of Jorgensen Ford in Detroit, gave out of protest of the regulations regulate anything that moves.” a deep background check from David Stewart, up on selling cars to the casinos for are rare. Of the nearly 2,000 com- New Jersey, for example, has $50,000 to $300,000. Ropes and Gray LLP use as giveaways. At his level of panies no longer in the system, he been undergoing a major shift in And for those who do less than sales, the licensing cost $5,000 and said, only 40 left because of the reg- its regulation and making it gaming vendors, according to a $50,000, a license to do business is the cost of an audit — not specified ulations. much easier for companies to do state-by-state list posted on the not required. Instead the process by the gaming board — made it al- “And once we talk to them, and business in the state. gaming site www.casino is called receiving an “exemp- most impossible for the numbers tell them why we need the income For Michigan to require signif- vendors.com, compiled by East tion,” where a $200 fee is paid and to work. tax disclosure, many of them have icant disclosure at $5,000 for non- Lansing-based Regulatory Manage- a background check for felony con- “It was all about the economics come back,” he said. “What we’re gaming vendors is a very low ment Counselors. victions is performed. for us,” he said. “We had to sell threshold, Stewart said. Richard Kalm, executive direc- asking for is not unreasonable.” In addition, each person with a them eight or nine cars in a year “The rationale here is to keep tor of the gaming control board, But attorney Beth Gotthelf, a 1 percent ownership stake must al- just to cover the licensing costs. It bad influences out of the invento- is aware of Michigan’s percep- shareholder with Detroit-based low their personal income taxes to just didn’t make sense.” ry of companies,” he said. “But to tion as being strict. Butzel Long PC, who has represent- be reviewed. do that, you have to be doing The original gaming control ed clients in the gaming industry, “There is a minimal amount of enough work to influence the act, approved by voters in 1996, said the licensing process has be- investigation that needs to be done Too much of a gamble casino. Someone selling $20,000 set up the guidelines for Michi- come too expensive and cumber- for an exemption,” Kalm said. And the regulations are creating in paper cups won’t influence a gan to be among the strictest in some for small businesses since “Making sure that someone is not a high barrier to entry for small casino. And $5,000 is ridiculous. the nation, he said. 2009. a felon and that they have paid companies — especially when Unless you’re near $100,000, it’s a “We’re one of the strictest in She said it will prohibit compa- their income taxes is a reasonable waste of everyone’s time.” the country,” he said. “But that there isn’t a guarantee of work. nies from doing business. thing to look at.” Of 14 states with gaming con- comes from the act, which dic- Valerie Robinson owns a small “Some of the information re- The gaming board uses the in- trol boards, just four require tates how gaming is regulated.” marketing company called Vision quired is personal financial formation only to ensure taxes are some form of licensing for non- Consultants and Promotions LLC. and tax information and must be paid, not to audit a person’s per- — Dan Duggan Based in Detroit, Robinson sells submitted by even owners of only sonal tax information against pens and pencils with advertise- a small interest in the company their business, he said. work since the beginning of De- with each casino. ments on them and has done work and even of some employees who “But they are choosing to do troit gaming. Shift4 continues to work with for MGM Grand. business in a heavily regulated in- Specifically, the level of person- Michigan’s tribal casinos, which own nothing,” she said. But the work comes and goes. So dustry,” he said. “This is part of al information disclosure re- are not governed under state gam- “Would you disclose personal fi- when she needed to complete all doing business. Besides, what do quired by the owners fueled the ing regulation. nancial and tax information to win the paperwork in 2009, she could- they have to hide?” decision to get out of Detroit’s Oder said this level of disclosure a $10,000 contract, especially when n’t justify the time. As an added bonus, the state casino industry. is absolutely needed for gaming the profit margin is extremely picked up $342,000 in unpaid taxes “I won’t say it’s the stupidest suppliers, but inappropriate for “I just can’t take all that time to low?” since 2009 as part of combing the law in the country, but it is close,” non-gaming suppliers. He also do the paperwork and not know The end result, she said, is that list, with another $132,000 in feder- said Shift4 President and CEO J. does not want his family’s person- there’s going to be business at the the smaller local companies move al taxes paid, Kalm said. David Oder. al contact information accessible. end of it,” Robinson said. out of the way and the large, out of- The company ensures that cred- “This law is completely out of Under state law, the casinos state companies get the contracts. it and debit card information is se- hand,” he said. “We do work with must do 30 percent of their work “It’s not right,” she said. “The Cars, stages, electronic money curely transferred from a point of some of the biggest casinos in the with Detroit businesses. The three casinos want to work with local Las Vegas-based Shift4 Corp., sale to a processor and back again. country and we don’t have to do casinos are all currently in compli- companies, and the local compa- which does casino work around It doesn’t work directly with any this. We do work for public utili- ance, said Kimberly Hall-Wagner, nies want to work with casinos. It the country, stopped doing busi- of the slot machines or table ties, universities and state govern- director of the city of Detroit’s Hu- shouldn’t be this hard.” ness with the three Detroit casinos games. It had been doing work ments, and they don’t ask for this man Rights Department, which Daniel Duggan: (313) 446-0414, in 2009 because of the changes. It with all three Detroit casinos, do- either. They care about getting the monitors the level of local casino [email protected]. Twitter: had been licensed to do casino ing $700 to $800 in sales per month job done, not how much money business. @d_duggan DBpageAD.qxp 5/26/2011 9:13 AM Page 1 20110606-NEWS--0017-RG1-CCI-CD_-- 6/1/2011 4:19 PM Page 1

June 6, 2011 CRAIN’S DETROIT BUSINESS Page M17

A CONVERSATION WITH

Dave Simon, Ilumisys Inc., Michigan Solid- State Lighting Association innovations: advanced manufacturing LED maker, group growing Electricity charges revival Dave Simon is president of both Ilumisys Inc., a Troy-based maker of ibbon-cuttings and new life for old Trans-Matic Manufacturing Co., which makes LED lights, and of the Michigan Solid- plants are marking Michigan’s manu- deep-drawn metal canisters for the batter- State Lighting Association. MORE COMPANY PROFILES R facturing revival. ies in Holland, and TUV SUD America, a sup- The U.S. Department of Energy Six months into 2011, the revival is led Soulbrain MI Inc., Page 18 plier of battery testing equipment in estimates the market for indoor lighting by the recovery of the automotive sector Rofin-Sinar Technologies Inc., Page 19 Auburn Hills. alone at $21 billion and predicts that bulbs powered by light-emitting diodes and new technological innovations — ELM Analytics LLC, Page 20 “We’ve been in this evolving stage for will expand. Last September, Ilumisys, specifically, electrification. some time, and we’re moving in a positive a subsidiary of Troy-based Altair Oak Park-based Azure Dynamics Corp. is Advancements in battery technologies direction,” said James Gillette, automo- Engineering Inc., bought a standalone shipping its retrofitted electric Ford Transit continued to surface across the state last tive analyst and director of financial ser- headquarters and manufacturing Connect commercial vans to fleets across year, including Waltham, Mass.-based A123 vices for Northville-based IHS Automotive facility as the company grows. the U.S. and will begin production in Eu- Systems Inc.’s nearly 300,000-square-foot Inc. “As much as we’ve tried to move man- Simon talked with Crain’s reporter rope this month. lithium-ion battery plant in Livonia, John- ufacturing out of Michigan, we’ve been Tom Henderson about the company Auburn Hills-based Alte LLC also is retro- son-Controls Inc.’s and LG Chem Ltd.’s plants able to hold our own, and you’re hard- and the trade group. fitting commercial vehicles with electric in Holland (still under construction). pressed to move the research and develop- drivetrains for vans, buses and other com- Supporting suppliers to the lithium-ion ment or advanced manufacturing out of How’s the new building? We’ve moved mercial fleets. (See story below.) makers have also sprouted, including the state.” in our R&D team. It’s a small staff, eight people, but we’re excited to be in the new building. We’re getting our capital equipment in place, which is going to make our manufacturing highly automated and cost Alte powers up hybrid makeovers as fuel costs soar competitive with China. We’re seeing a global shift in manufacturing back to capital requirements significantly to lower the U.S. Chinese labor rates are going BY MARTI BENEDETTI to triple over the next few years. They SPECIAL TO CRAIN’S DETROIT BUSINESS risk in this batch of loan applicants, but we won’t be up to U.S. wages, but it are undaunted and proceeding well in that makes it less attractive to shift ohn Thomas, co-founder and CEO of capital raise,” he said. “The great news is business overseas. It’s a good time to Auburn Hills-based Alte LLC, couldn’t we just received underwriting approval on be manufacturing in Michigan. J have chosen a better time to ramp up his a major bridge loan as part of an institu- hybrid electric powertrain company. tional round of funding. Details will be an- What sort of volumes to start and what While gasoline prices soar near $4 a gal- nounced when we are given permission to markets? We’ll do about 800,000 units lon, Alte (short for Alternative Energy) is announce the deal from our lender.” a year. We’ll be focused on LED engineering, designing and planning to Still, the company is interviewing and replacements for fluorescent tubes. manufacture modular, range-extended elec- hopes to hire 48 more people by the end of The replacement market for fluorescent tric powertrains for van and truck fleets. this year, for a total of 84 employees. tubes in the U.S. alone is 550 million The powertrains will be retrofitted to the Customers will be primarily utility, gov- units per year. … We’ll be hiring a few people to work in production, some in vehicles, which will double fuel economy ernment and corporate fleets. Thomas has material handling, some in logistics, while meeting stricter emission standards. DUSTIN WALSH/CRAIN’S DETROIT BUSINESS had interest to retrofit up to 900,000 vehi- some in sales, accounting and The company recently signed a seven- cles with the Alte powertrain, and the of- shipping. We’ll have them all hired by year lease on a 184,000-square-foot indus- It’s a monumental fice phone rings frequently with client late fall, 40 people in all. trial building in Auburn Hills. Thomas “ prospects.Thomas expects production to said the building, formerly a Lear Corp. achievement for a start in the second quarter of 2012. He pro- What do traditional tubes cost, and seating factory, suits his company well jected about $60 million in revenue next what do your tubes cost? Fluorescent with 14,000 square feet of office space and a company like ours to get year. No revenue is expected this year. tubes are $2 to $3 each. Right now, 170,000-square-foot factory floor. The company will target its marketing between us and our licensees, we’re Additionally, the company has commit- specifically to those in the fleet industry by seeing retail prices ranging from $40 to Fortune 500 support. ments from 10 Fortune 500 company execu- attending trade shows throughout the $80. We see that being cut in half over ” tives to join its advisory board. It hopes to country. Thomas said Alte hit a home run the next two years. And when we get to John Thomas, Alte LLC that point, there’s a two-year payback announce the executives at a kickoff meet- when it hired Dennis Baranik, a former for customers because of the energy ing soon. Alte got its initial funding last October Ford Motor Co. executive with a “golden savings, plus you eliminate all the “It’s a monumental achievement for a from a federal visa program called employ- Rolodex,” as the company’s vice president problems associated with mercury. company like ours to get Fortune 500 sup- ment-based fifth category (EB-5), which en- of sales and marketing. port,” added Thomas, who formerly led the abled investors from South Korea and Chi- On the horizon is a $6 million DOE grant How is the association going? We’re Michigan technical center for Tesla, a Sili- na to invest in the company and help it for a joint venture between his company up to 24 members and growing. con Valley-based electric carmaker. grow. So far, roughly half of the company’s and a group of University of Michigan profes- We’ve got a significant recruiting Another success, Thomas said, is a re- funding has come from EB-5 investors. sors who are working on supercapacitors event in the western side of the state cent partnership with Manheim, the world’s One visa is granted for each $500,000 in- that use lithium-ion technology. This is ex- we’re focusing on for August. We have leading provider of vehicle remarketing vestor, so Alte has secured $5.5 million so pected to be in production in two and a half our annual symposium in November. services, which will install Alte power- far from EB-5 sources, Thomas said. This years and will lower battery costs by We’ve only been around for a year and train kits on fleet vehicles. The partner- means 11 visas will be issued to foreign in- 40 percent, Thomas said. The technology a half and we’ve already had two major symposiums. We’ll have a ship was announced in early April, and vestors upon approval of their applica- will go into Alte’s battery booth at a June event at Oakland Manheim’s plan is to put a pilot facility in tions. The funds have kept the company box. University, at an event put on by the Southern California, Atlanta and New operating and growing to the point where Eric Shreffler, Michigan Department of Energy and the York City, where the demand for retro- it has 36 employees and is hiring at a pace Economic Development Corp. national Municipal Solid-State Street fitting is greatest. A Manheim spokesper- of nearly two a week. sector development director Lighting Consortium. son said the company would retrofit 2,000 Thomas said he had hoped to hire more for advanced energy stor- to 4,000 vehicles by next summer and even- people by now, but a delayed $64 million age, said he has assisted the tually up to 50,000 a year. U.S. Department of Energy alternative energy company in getting local If you know someone Thomas said each powertrain will pro- loan has prevented it. He called the delay and high-tech Michigan Eco- interesting in banking, vide 35 to 40 miles worth of driving on elec- on the loan from the DOE “incredibly frus- nomic Growth Authority tax in- finance, technology tricity from a plug-in battery. After that, trating. We’ve done due diligence.” centives. He sees a promis- or biotechnology Shreffler Tom Henderson an electric generator will power the van or The company met with department offi- ing future for the company. should interview call truck for another 275 miles. A 10-gallon gas cials in Washington last month and has se- “The electrification of vehicles is not a (313) 446-0337 or tank will fuel the generator. Down the cured other financing in the meantime. passing fad, and Alte has the ability to write thenderson road, the company envisions manufactur- The $64 million DOE loan is still pend- leverage batteries to drive powertrains,” @crain.com. ing powertrains that use diesel and coming, Thomas said. he said. “They are part of the ecosystem (in pressed natural gas. “The DOE has increased its matching Michigan) that is growing rapidly.” 20110606-NEWS--0018-RG1-CCI-CD_-- 6/1/2011 2:13 PM Page 1

Page M18 CRAIN’S DETROIT BUSINESS June 6, 2011 Focus: Innovations: Advanced Manufacturing Soulbrain gives state key link in battery supply chain

BY DUSTIN WALSH SemiChem Co. Ltd., began produc- tities under customer contracts. concern, he said. be a good thing for this country CRAIN’S DETROIT BUSINESS ing the integral chemical for lithi- Soulbrain’s 133,000-square-foot Also, the liquid only has a shelf and great for Michigan.” um-ion batteries in February. R&D facility provides the only life outside the battery of five to Under Ibara’s directive, Techno The electrification of Michi- In the battery industry, elec- source of electrolyte for use in au- six months, he said. SemiChem acquired the recently gan’s auto industry is no longer trolyte is a liquid that generates tomotive batteries in the state. “If your shipment was unlucky opened Northville facility for static as electric cars, Chevrolet power through a chemical reac- Cleveland-based Novolyte Technolo- enough to be waylaid by customs, $4 million. Before this, the once Volts and Nissan Leafs, are in cus- tion in the lithium-ion battery, act- gies is the only other supplier in we’re taking away a third of the state-of-the-art building had been tomer garages and on city streets. ing as a conductor for ions to cross the country. product life. I don’t think any bat- vacant for 10 years. That’s good news for the compa- between the anode and cathode in Most of the U.S. supply of elec- tery-makers here want to manu- Techno invested $25 million in nies along each aspect of the sup- the system. trolyte is shipped from Asia, Ibara facture lithium-ion batteries with the facility, including robotics for ply chain — down to the chemicals Soulbrain is expected to gener- said. offshore electrolyte.” cleaning and testing finished prod- for the lithium-ion batteries. ate $10 million in revenue this “It’s liquid, heavy and flamma- Soulbrain currently is shipping uct containers, filling stations and Johnson Controls Inc., LG Chem and year, then double or triple over the ble,” he said. “Shipping electrolyte chemicals from Asia and mixing two analysis labs. A123 Systems Inc. all have lithium- next two years, said Allen Ibara, is costly because of this and cer- the proprietary solutions and addi- Soulbrain employs 23, but plans ion battery plants in operation or Soulbrain’s CEO. tain tariffs.” tives to create electrolyte at the to reach 45 employees by the end of under construction in the state. Lo- The company signed a develop- James Gillette, automotive ana- Northville facility. the year — primarily hiring recent cal suppliers to this new automotive ment and supply agreement with lyst and director of financial ser- Ibara said Soulbrain will either University of Michigan, Michigan technology are cropping up as a re- Milwaukee-based Johnson Con- vices for Northville-based IHS Auto- build an addition to its existing fa- State University and Wayne State Uni- sult, including the state’s only sup- trols to provide the chemical to sev- motive Inc., said suppliers are cility or acquire a new plant to en- versity graduates. plier of electrolyte, Soulbrain MI Inc. eral of its plants, including one in reviewing their systems to deal able it to move into full production “We’ve already hired a first Soulbrain, formerly TSC Michi- Holland. It also supplies other with the rising costs of oil. of the electrolyte, he said. wave of engineers from all three gan and a subsidiary of Korean Michigan battery-makers, but is Closing the geographic gap be- Its proximity to local lithium- research universities,” he said. chemical conglomerate Techno not permitted to disclose their iden- tween supplier and plant is a top ion plants puts the supplier in a “This is new technology, so we pre- good position to capitalize on the fer to hire new bright and young emerging market, said Jack Hu, talent and train them before professor of mechanical engineer- they’ve learned bad habits.” ing at the University of Michigan. High-tech companies like Soul- “Given the growing industry, brain settling in Michigan provide having a local electrolyte source a benefit that goes beyond the auto puts Soulbrain in the position for industry, Gillette said. serious growth opportunities,” he “It’s certainly a boon for us,” he said. “Aside from reducing the said. “The more technology com- risk, it makes the supply easier to panies located here will boost our manage.” education system and keep scien- Soulbrain got its start in 2009, tists away from Massachusetts or when Techno SemiChem lured Silicon Valley.” Ibara away from Silicon Valley to Johnson Controls declined to open an electrolyte facility in comment. Several phone calls to Michigan. Novolyte were not returned. “I’m addicted to change and Dustin Walsh: (313) 446-6042, technology, and this represents [email protected]. Twitter: both,” he said. “I knew this would @dustinpwalsh Reinventing healthcare for Michigan

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JOHN SOBCZAK “It’s liquid, heavy and flammable,” said Soulbrain MI Inc. CEO Allen Ibara of the 00/¬s¬(-/¬s¬0/3¬s¬(3!¬s¬(2!¬s¬&3!¬s¬$%.4!,¬s¬6)3)/. costs and dangers of shipping electrolyte. Soulbrain is Michigan’s sole supplier of electrolyte for automotive lithium-ion batteries. 20110606-NEWS--0019-RG1-CCI-CD_-- 5/31/2011 4:53 PM Page 1

June 6, 2011 CRAIN’S DETROIT BUSINESS Page M19 Focus: Innovations: Advanced Manufacturing

COURTESY OF ROFIN-SINAR CEO Gunther Braun told Crain’s that Plymouth-based Rofin-Sinar Technologies Inc. will continue to grow its business in China and India. Rofin-Sinar’s rebound expected to send it into record territory

BY TOM HENDERSON CRAIN’S DETROIT BUSINESS

High-end laser maker Rofin-Sinar Technologies Inc. is back. Long admired by analysts for hitting its numbers most quarters and for the quality of its products and services, the Plymouth-based maker of expensive laser systems and components was hit hard by the recession. Its customers are manufacturers who use lasers to cut materials or label products. As manufacturing came to a near halt during the recession, so, too, did orders for high-end manufacturing equipment. Shaping a Rofin-Sinar’s revenue fell off a COURTESY OF ROFIN-SINAR cliff, its net income, always well A laser cuts metal at Rofin-Sinar into the black, turned red and its Technologies Inc. share price plummeted. The company’s revenue hit a record $12.7 million, or 43 cents a share, $575.3 million in fiscal 2008 but fell on revenue of $136.2 million for the future. to $349.6 million the next year. second quarter of its fiscal year Things hit bottom in the third that ended March 31. That com- quarter of fiscal 2009, when rev- pared to net income of $4.7 million, enue was off nearly 50 percent or 16 cents, on revenue of $95.9 mil- from a year earlier and it had a net lion for the same quarter last year. loss of $4.9 million, a decline of It also reported a record order $20 million. backlog of $169 million. It hired 70 That year, the company laid off employees in the quarter to bring 10 percent of its employees, its worldwide total to almost 2,000, stopped using temporaries and and added a handful of employees shortened others’ work weeks. at its Plymouth manufacturing But Rofin-Sinar’s recovery has plant to hit a total of 90 there. been swift and complete. If ana- For the first six months, the lysts are correct, its share price company reported net income of could hit an all-time high later this $27.6 million or 95 cents a share on year or early next. If company offi- revenue of $273.3 million, com- Education for a resurgent Michigan. Grand Valley State University is developing the talent cials are right, it could set a new pared to net income of $8.2 million and resources needed to support a rejuvinated Michigan. We’re offering new programs record for revenue of $580 million or 28 cents on revenue of this year. $188.9 million for the same period that will be national models for learning. And we’re developing students with the advanced Its laser systems range in price a year ago. decision-making and problem-solving skills required to support a more agile, diversified from $25,000 to more than $1 mil- On May 6, Mark Douglass of lion. They can do such heavy in- Longbow Research, a firm based in economy. Visit online to learn more about the innovation and creativity that is helping us dustrial work as cutting thick met- Independence, Ohio, gave Rofin- al or such delicate work as making Sinar a buy rating and set a 12- provide a vibrant work force for Michigan. gvsu.edu/GRAND | (800) 748-0246 500,000 microscopic perforations a month target price for its stock of second in the paper that goes at the $47. tip of a cigarette. Also on May 6, Chuck Murphy, a On May 5, Rofin-Sinar (Nasdaq: research analyst with New York- RSTI) which is co-headquartered based Sidoti & Co. LLC, rated the in Plymouth and Hamburg, Ger- many, reported net income of See Rofin-Sinar, Page 20 20110606-NEWS--0020-RG1-CCI-CD_-- 5/31/2011 5:06 PM Page 1

Page M20 CRAIN’S DETROIT BUSINESS June 6, 2011 Focus: Innovations: Advanced Manufacturing Just the facts: Data analysts hot Rofin-Sinar: On rebound ■ From Page 19 BY LAURA BLODGETT “People at the OEM and tier-one that we needed to base this on stock a buy and set a target of $53 a numbers, but you can’t be disap- SPECIAL TO CRAIN’S DETROIT BUSINESS levels are increasingly being hard evidence of real problems.” share. pointed with their sales rebound,” asked to make Hough — also co-owner of Edict Rofin-Sinar hit its pre-recession Douglass told Crain’s. He said the As the automotive industry decisions not on Inc., a Rochester-based Web devel- high of $48.58 on Dec. 26, 2007. It hit reason the company’s net income turns its sights to advanced vehi- instinct but on opment company that creates ap- its low of $12.49 on May 9, 2009 and was less than he projected was cle development and further re- fact,” said Tor plications for supply chain list as recently as last July 20 it traded “they had to step up their invest- finement of the supply chain, Hough, presi- management, particularly for large at $19.84. Then came a series of in- ment because demand was so high. providers of analytics to guide the dent of ELM Ana- companies — noticed this trend creasingly stronger earnings re- It hurt their margins near-term, way are hot commodities. lytics LLC, based and began researching who held ports showing that its customers but it’s a good problem to have. These specialists have dissected in Rochester. the supplier data in the industry. were back in the market for lasers Long-term, they’re in great shape.” the supply chain and can provide “As TARP mon- In fall 2010, he met Mark San- and laser systems. He said the company’s reputa- customers roadmaps for sourcing ey came in and tucci, who had launched ELM Murphy gave the buy rating de- tion is providing “support that is or finding work. That’s because Hough people were fig- Guide to Automotive Sourcing, a spite Rofin-Sinar’s having missed very, very strong. They have a detailed data analysis is now more uring out how well-known automotive database Longbow’s estimate for second- large product portfolio and a wide frequently a mandatory part of to recover the industry, the imper- of suppliers of production parts quarter earnings of 55 cents a share. range of lasers and laser products. contract decision-making. atives became more so than ever See Data, Page 21 “I was a little disappointed in the It’s a good management team. Straightforward. Candid. They’ve historically done a nice job.” Murphy said the company’s strength compared to other laser manufacturers “is they’ve been leaders in applications and support. A laser isn’t just something How do you plug in and use. You have to tweak it. What beam size do you use, in what strength, on what you measure kinds of materials? That’s where Rofin-Sinar excels. “If the economic cycle rolls, Rofin-Sinar will roll with it,” he success? said. Mark Miller, a senior research analyst with Florida-based Noble Fi- nancial Group Inc., has a hold rating on Rofin-Sinar, mainly because it al- At Automation Alley, we can tell our ready has had a nice run up in share price, but praised the company. story by numbers, by companies, by “These guys have been stellar performers,” he said. “It’s got a con- milestones. But at the end of the day, servative leadership team, they do a good job. From 2005 until the reces- what really matters to us is that we’re sion, every quarter was good. They helping to grow Southeast Michigan as always met or beat their numbers. It’s just a really attractive firm. For a hub for innovation. four or five years, they had a great story to tell, and they’re hitting their numbers again. I give Gun- ther Braun good marks as a CEO.” That has been the driving focus since Braun told Crain’s that the company, which was founded in Ham- we opened in 1999, and today, we’re burg in 1975 and established Ply- mouth as a co-headquarters when excited to look back on more than a it went public on the Nasdaq exchange in 1996, will continue to decade of businesses built and markets grow its business in China and In- discovered. dia. The Asian market accounts for about a third of revenue now, with Europe almost 50 percent and North America about 20 percent. Because in 12 years, we’ve created The company maintains a strong balance sheet, which it leverages quite a story. And our guess is, your for acquisitions. Its last acquisition was in October, when it bought one company has too. of the world’s oldest laser companies, Lasag AG of Switzerland, for an undisclosed amount. Acquisitions allow the company So take a minute to share your story to expand its product range and with our community—the region of buy companies that supply Rofin- Sinar’s competitors. Southeast Michigan—and with the Rofin-Sinar’s most direct competitor, as a supplier of a wide world. Go to www.automationalley.com range of components and systems, is German-based Strumpf GmbH. It WRÀQGRXWKRZ\RXFDQEHDSDUWRIWKH has some overlap in selling components with such other laser compa- movement that is changing the image nies as California-based Coherent Inc., California-based Newport of Michigan, one story at a time. Corp., and Massachusetts-based IPG Photonics Corp. “Our balance sheet always attracts somebody. There’s always something on the table, but we try not to go crazy with acquisitions,” said Braun. The company has $119 million in cash on hand. Tom Henderson: (313) 446-0337, [email protected]. Twitter: @tomhenderson2 20110606-NEWS--0021-RG1-CCI-CD_-- 5/31/2011 5:05 PM Page 1

June 6, 2011 CRAIN’S DETROIT BUSINESS Page M21 Focus: Innovations: Advanced Manufacturing Data: Analysts hot as business decisions turn to matters of fact ■ From Page 20 for autos and light trucks, as part of nificantly again and the industry plant-by-plant level,” said Swiecki. profiles on products and processes ELM is in the midst of a substan- ELM International Inc. The guide was is now pretty robust,” said Instead of using the former pric- with a focus on global capabilities. tial campaign to meet with OEMs, successful until 2008 when the in- Stevens. “The ability to know ing structure of a $4,000- to 10,000- Scott Farwell, vice president for tier-one suppliers and organiza- dustry started to collapse and the where the plants are and the num- per-person annual subscription, North America in the Troy office tions like OESA and MICHAuto, Santucci turned to other issues. ber of jobs they represent across Hough is charging $50 per person of Toyko-based MarkLines, said which became part of the Detroit Santucci sold the ELM assets in states, districts and across the per month for a basic subscription the distinction between the compa- Regional Chamber in July and is fo- December to Hough, who launched country is extremely important to and $250 per person for a premium nies is the degree of global focus. cused on bolstering the auto sup- ELM Analytics and its new automo- us. I think they are sitting on subscription. “The automotive market is very ply chain in the state. ELM’s in- tive supplier database called Elec- something very valuable.” Hough expects gross revenue for dynamic and global in nature tent with these groups is to start tronic Guide to Automotive Sourc- Bernard Swiecki, senior project the first year of $845,000 heading, these days, and a lot of our cus- top-down efforts to map their sup- ing at www.elmanalytics.com. manager, Center for Automotive Re- toward $2.8 million by the end of tomers have an interest in what is ply chains. “I held onto the brand name be- search in Ann Arbor, was a sub- its second year. happening in global and emerging “There is a huge movement right cause ELM is recognized by every- scriber of the previous ELM guide. Competing databases from Sup- markets,” said Farwell, adding now by OEMs to map their supply one in the industry as being the “There is certainly a need for this plierBusiness in Northville, now a that his company had no problem chains out to the tier-two and tier- best place to start when trying to kind of information in the industry, part of IHS Inc., and MarkLines North coexisting with ELM in the mar- three levels to know where their identify who can provide what especially if they can drill down to a America Inc. in Troy, offer similar ketplace previously. stuff is coming from,” said Hough. from where,” said Hough. Sandy Stojkovski, president of Plymouth-based AVL Strategic Ana- lytic Services Inc., part of AVL North America, said analytics in the auto business is an “exploding” industry driven by energy-related regulations as well as consumer and global economics. The ELM database holds information on approximately 7,300 North American automotive and light truck manufacturers and direct production parts suppliers. Data includes supplier location information, number of employees, parts and processes, materials required, patent registrations, maps, media coverage, press releases, company announcements, leadership and parent company hierarchy. With their expertise in Web design and development, Hough and his staff have spent a significant amount of time doing an overhaul of the database. One of their main priorities has been developing an accurate online mechanism for maintaining data and tracking changes to make it easy for a supplier to visit the website and add information. “Ultimately, if you come to me and say ‘I’m interested in suppliers with more than 50,000 square feet of manufacturing capability that are capable of producing a certain commodity,’ I can look into my data and provide that.” The data can help link interested parties together, sometimes in surprising ways. “One of our customers is the Canadian Embassy in Washing- ton, D.C.,” said Hough. “When somebody on their staff is going to meet with someone in Washing- ton, they want to be able to pull the Canadian suppliers in Canada who provide parts to U.S. facilities and the U.S. manufacturers to Canada by congressional district.” Another feature that Hough says differentiates ELM Analytics is its ability to track updates in real time including live FEMA (Federal Emer- gency Management Agency) data. This enables ELM to provide up-to- the-minute severe weather information on which suppliers are af- fected by natural disasters, such as the recent flooding of the Mississip- pi River and tornado in Joplin, Mo. Glenn Stevens, vice president of sales and business development at the Original Equipment Suppliers As- sociation in Troy, sees a tremendous amount of applicable information sharing between their organization and ELM. “Manufacturing facilities are the largest source of pure jobs — of course the number took a hit in the last few years, but it’s building sig- 20110606-NEWS--0022-RG1-CCI-CD_-- 5/31/2011 4:50 PM Page 1

Page M22 CRAIN’S DETROIT BUSINESS June 6, 2011

CRAIN'S LIST: PRIVATE 200 Ranked by 2010 revenue

Full-time local Worldwide Company Revenue 2010 Revenue 2009 employees employees Rank Phone; website Top executive ($000,000) ($000,000) Percent change Jan. 2011 Jan. 2011 Type of business Chrysler Group LLC Sergio Marchionne $41,946.0 $17,710.0 B 136.8% 22,431 50,264 Automobile manufacturer 1. (248) 576-5741; www.chryslergroupllc.com CEO Penske Corp. Roger Penske 18,125.0 16,000.0 13.3 NA 35,464 Retail automotive, truck leasing and logistics, transportation 2. (248) 648-2000; www.penske.com chairman and CEO components, motorsports racing Delphi Automotive LLP C Rodney O'Neal 11,755.0 3,421.0 D 243.6 100,000 NA Manufacturer of mobile electronics and entertainment systems 3. (248) 813-2000; www.delphi.com president and CEO Guardian Industries Corp. Peter Walters 5,000.0 E 4,950.0 E 1.0 NA NA Manufacturer of glass, automotive and building products 4. (248) 340-1800; www.guardian.com chairman of the board IAC Group James Kamsickas 3,700.0 3,200.0 15.6 710 22,000 Global tier-one supplier of automotive components and systems, 5. (248) 455-7000; www.iacgroup.com global co-CEO and president of including interior and exterior trim North America and Asia TI Automotive Ltd. Bill Kozyra 2,500.0 1,800.0 38.9 450 16,500 Fuel systems; brake and fuel lines; heating, ventilation and air- 6. (248) 494-5000; www.tiautomotive.com chairman of the board, president conditioning systems and CEO Cooper-Standard Automotive James McElya 2,414.0 F 1,945.3 24.1 NA NA Fluid-handling systems, noise- and vibration-control products, 7. (248) 596-5900; www.cooperstandard.com chairman and CEO body-sealing systems Ilitch companies Christopher Ilitch 2,200.0 2,100.0 4.8 NA NA Little Caesars Pizza, Detroit Red Wings, Blue Line Foodservice (313) 983-6600; www.ilitchcompanies.com president and CEO Distribution, Champion Foods, Olympia Entertainment, Uptown 8. Entertainment, Olympia Development, Little Caesars Pizza Kit Fundraising Program and Ilitch Holdings. Michael Ilitch owns the Detroit Tigers. Marian Ilitch owns MotorCity Casino Hotel Affinia Group Inc. Terry McCormack 1,991.0 1,800.0 10.6 60 10,000 Automotive and industrial replacement parts 9. (734) 827-5400; www.affiniagroup.com president and CEO Plastipak Holdings Inc. William Young 1,941.8 1,778.7 9.2 618 5,200 Manufacturer of rigid plastic containers for the consumer 10. (734) 455-3600; www.plastipak.com president and CEO products industry Soave Enterprises LLC Anthony Soave 1,734.0 1,250.0 38.7 615 1,147 Diversified management holding company, specializing in scrap 11. (313) 567-7000; www.soave.com president and CEO metal recycling, real estate, beverage distribution and auto retailing, among others. Atlas Oil Co. Sam Simon 1,614.8 1,081.2 49.4 NA NA Petroleum distribution, total fuel needs 12. (800) 878-2000; www.atlasoil.com chairman and CEO Sherwood Food Distributors Earl Ishbia 1,271.3 1,222.8 4.0 280 1,034 Wholesale food distributor 13. (313) 659-7300; www.sherwoodfoods.com co-chairman, president and CEO Moroun family holdings G 1,200.0 E 1,140.0 E 5.3 NA NA Ambassador Bridge and various trucking and logistics companies 14. (586) 939-7000 Barton Malow Co. Lester Snyder III 1,122.3 1,246.9 -10.0 485 1,409 Construction services 15. (248) 436-5000; www.bartonmalow.com president and COO Belfor Holdings Inc. Sheldon Yellen 1,088.0 948.2 14.7 1,371 5,542 Insurance repair and reconstruction, environmental cleanup, 16. (248) 594-1144; www.belfor.com CEO residential, commercial and industrial The Suburban Collection David Fischer 1,054.8 934.3 12.9 1,331 1,628 Automobile dealerships 17. (877) 471-7100; www.suburbancollection.com president and CEO Quicken Loans/Rock Financial Inc. Dan Gilbert 1,015.0 H 875.0 16.0 NA NA Mortgage banking 18. (800) 226-6308; www.quickenloans.com and chairman and founder www.rockfinancial.com Walbridge Aldinger Co. John Rakolta Jr. 1,001.5 1,000.0 0.2 316 1,000 Construction 19. (313) 963-8000; www.walbridge.com chairman and CEO Inteva Products LLC Lon Offenbacher 1,000.0 1,000.0 0.0 270 8,000 Automotive supplier 20. (248) 655-8886; www.intevaproducts.com president and CEO Bridgewater Interiors LLC Ronald Hall 950.0 E 915.0 3.8 NA NA Automotive interiors 21. (313) 842-3300 president and CEO Wolverine Packing Co. Jim Bonahoom 934.0 820.0 13.9 375 NA Wholesale meat packer and processor; wholesale meat, poultry 22. (313) 259-7500; www.wolverinepacking.com president and seafood distributor H.W. Kaufman Financial Group/ Alan Kaufman 900.0 850.0 5.9 210 900 Specialty insurance, reinsurance, premium financing, loss control 23. Burns & Wilcox chairman, president and CEO and premium audits (248) 932-9000; www.burnsandwilcox.com Metaldyne LLC Thomas Amato 880.0 630.0 39.7 130 3,967 Powder metal connecting rods, powder metal components, (734) 207-6200; www.metaldyne.com president and CEO balance shaft modules and systems, crankshaft rubber and 24. viscous dampers, transmission modules, differential assemblies and forged components Health Plan of Michigan Inc. David Cotton 873.2 660.3 32.2 285 285 Health maintenance organization 25. (313) 324-3700; www.hpmich.com president and CEO Grede Holdings LLC I Douglas Grimm 735.0 575.0 27.8 29 3,725 Metal components supplier 26. (248) 440-9500; www.grede.com chairman, president and CEO Barrick Enterprises Inc. Robert Barrick 721.8 515.1 40.1 28 28 Petroleum retailer and wholesaler 27. (248) 549-3737; www.barrickent.com president Key Safety Systems Inc. Jason Luo 715.0 615.0 E 16.3 NA NA Airbags, seatbelts, steering wheels, electronics 28. (586) 726-3800; www.keysafetyinc.com president and CEO Kenwal Steel Corp. Kenneth Eisenberg 706.2 512.8 37.7 204 328 Steel service center 29. (313) 739-1000; www.kenwal.com chairman and CEO RGIS LLC Paul Street 700.0 E 700.0 E 0.0 NA NA Inventory services 30. (248) 651-2511; www.rgis.com CEO TAG Holdings LLC Joseph Anderson Jr. 689.0 533.0 29.3 10 190 Module and component manufacturing for various industries 31. (248) 822-8056; www.taghold.com chairman and CEO including automotive, sports and recreation vehicles, consumer products, heavy vehicles, etc.

B Chrysler Group LLC posted $17.7 billion in revenue from its June 10, 2009, exit from Chapter 11 bankruptcy through Dec. 31, 2009. Revenue generated before emerging from Chapter 11 is attributed to Chrysler LLC, owned by Cerberus Capital Management LP 2008 figure is unaudited net revenue from the predecessor Chrysler LLC, owned by Cerberus Capital Management LP. C Delphi Automotive LLP filed paperwork for an initial public offering on May 25. The new entity will be Delphi Automotive plc and is reportedly estimated to raise $1 billion during its IPO. D Delphi Automotive L.L.P. posted $3.4 billion in revenue between Aug. 19 and Dec. 31, 2009. The new company emerged from Chapter 11 bankruptcy in Oct.. The "old" Delphi, now known as DPH Holdings, generated revenue of $8.3 billion from Jan. 1, 2009 through Oct. 6. E Crain's estimate. F Fiscal estimate from Automotive News. G There is not a holding company for the Moroun family businesses. Some are public companies controlled by Manuel and/or Matthew Moroun. Others are owned privately by the Moroun family. H Crain's estimate. Revenue estimates for 2010 and 2009 are based on 3.5 percent of loan volume. I Grede Holdings LLC was formed in Feb. in 2010 from the combined assets of Citation Corp. and Grede Foundries Inc., which underwent Chapter 11 reorganization. Continued on Page 24 LIST RESEARCHED BY ANNE MARKS DBpageAD.qxp 5/23/2011 4:11 PM Page 1

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Page M24 CRAIN’S DETROIT BUSINESS June 6, 2011

CRAIN'S LIST: PRIVATE 200 Ranked by 2010 revenue

From Page 22 Full-time local Worldwide Company Revenue 2010 Revenue 2009 employees employees Rank Phone; website Top executive ($000,000) ($000,000) Percent change Jan. 2011 Jan. 2011 Type of business 32. Lakeshore TolTest Corp. Avinash Rachmale $624.1 $268.0 132.9% 109 485 General contractor (313) 875-4115; www.lakeshoreeng.com CEO and president George P. Johnson Co. Laurence Vallee 577.0 478.9 20.5 100 795 Experiential marketing agency (248) 475-2500; www.gpj.com president and David Drews 33. CFO and executive vice president 34. The Diez Group Gerald Diez 557.0 350.0 59.1 235 325 Holding group for steel manufacturing and stamping companies (313) 491-1200; www.thediezgroup.com chairman and CEO 35. Henniges Automotive Robert DePierre 540.0 420.0 28.6 170 4,320 Weatherstrip seals, glass encapsulation, modular sealing systems (248) 553-5300; www.hennigesautomotive.com chairman, president and CEO and anti-vibration components 36. Living Essentials LLC Manoj Bhargava 525.0 B 500.0 5.0 NA NA Maker of energy drinks. NA 37. Prestige Automotive Gregory Jackson 524.2 371.2 41.2 NA NA Automobile dealerships, real estate and insurance (586) 773-2369; www.prestigeautomotive.com chairman, president and CEO 38. Orleans International Inc. Earl Tushman 514.0 478.0 7.5 33 37 Meat importer (248) 855-5556; www.orleansintl.com president 39. Key Plastics LLC Terry Gohl 504.0 365.0 38.1 263 3,850 Injection-molded components and assemblies (248) 449-6100; www.keyplastics.com CEO 40. HoMedics Inc. Roman Ferber 500.0 B 500.0 B 0.0 NA NA Personal wellness products (248) 863-3000; www.homedics.com president 40. Barden Cos. Inc. Michelle Sherman 500.0 405.0 23.5 NA NA Gaming, residential and commercial real estate development and (313) 496-2900 CFO entertainment 42. McNaughton-McKay Electric Co. Donald Slominski Jr. 494.0 390.0 26.7 260 670 Electric/electronics distributor (248) 399-7500; www.mc-mc.com president and CEO RKA Petroleum Cos. Inc. Keith Albertie 492.6 406.7 21.1 83 102 Wholesale distributor of gasoline, diesel fuel, ethanol, biodiesel, 43. (734) 946-2199; www.rkapetroleum.com chairman, secretary and Jet A and Jet A1 products executive director 44. ABC Appliance Inc. Gordon Hartunian 469.0 475.0 -1.3 944 1,757 Appliances, electronics and car audio (248) 335-4222; www.abcwarehouse.com chairman 45. Carhartt Inc. Mark Valade 466.0 460.0 1.3 NA NA Apparel manufacturer (313) 271-8460; www.carhartt.com CEO and president The Harvard Drug Group LLC Terrance Haas 443.0 457.9 -3.3 255 477 Pharmaceutical distributor, wholesaler and manufacturer, 46. (734) 743-6000; www.theharvarddruggroup.com CEO and Randolph Friedman compounding, vet supply, etc. chairman and CEO 47. Lipari Foods Inc. Thom Lipari 407.0 393.0 3.6 357 613 Wholesale food distribution (586) 447-3500; www.liparifoods.com president and CEO 48. Trico Products Corp. James Finley 396.0 C 396.0 0.0 NA 2,600 Aftermarket and OEM windshield wiper blades and systems (248) 371-1700; www.tricoproducts.com president and CEO 49. Global Automotive Alliance LLC William Pickard 389.0 222.0 75.2 435 550 Automotive supplier (313) 842-3009 chairman and CEO 50. Letica Corp. Anton Letica 388.0 D 388.0 D 0.0 NA NA Plastic and paper packaging manufacturer (248) 652-0557; www.letica.com president 51. Elder Automotive Group Irma Elder 376.6 296.7 26.9 300 418 Automotive dealerships (248) 585-4000; www.elderautomotivegroup.com CEO 52. Michigan Cat Bill Hodges 375.0 275.0 36.4 330 520 Heavy construction equipment and engine sales, parts, rental (248) 349-4800; www.michigancat.com executive vice president and service LaFontaine Automotive Group Michael LaFontaine 351.3 273.5 28.5 424 NA Automobile dealerships (313) 561-6600; www.thefamilydeal.com owner and president 53. Maureen LaFontaine owner / vice president 54. R.L. Polk & Co. Stephen Polk 351.0 350.0 0.3 435 1,305 Automotive industry information (248) 728-7000; www.polk.com chairman, president and CEO 55. PVS Chemicals Inc. James Nicholson 335.0 334.7 0.1 445 835 Manufacturer, marketer and distributor of industrial chemicals (313) 921-1200; www.pvschemicals.com president and CEO 56. Piston Group Vincent Johnson 324.0 247.8 30.7 184 242 Automotive supplier (313) 541-8546; www.pistongroup.com chairman 57. Talascend LLC Ron Wood 310.0 256.0 21.1 340 1,560 Technical resources (248) 537-1300; www.talascend.com chairman 58. MSX International Inc. Frederick Minturn 304.0 304.0 0.0 NA NA Warranty, retail and business outsourcing services, specialized (248) 829-6300; www.msxi.com president and CEO staffing, engineering 59. EQ-The Environmental Quality Co. David Lusk 300.0 240.0 25.0 370 843 Environmental management services (734) 329-8000; www.eqonline.com president and CEO 60. Plante & Moran PLLC Gordon Krater 298.3 301.2 -1.0 801 1,439 Accounting firm (248) 352-2500; www.plantemoran.com managing partner Southfield Dodge Chrysler Jeep Ram Dan Frost 286.2 202.4 41.4 364 NA Automobile dealerships 61. (248) 354-2950; southfieldchrysler.com president and Gary Wood CFO 62. Camaco LLC Arvind Pradhan 275.0 225.0 22.2 21 675 Manufacturer of stamped metal and wire frame seat assemblies, (248) 442-6800; www.camacollc.com president and CEO headrests and other products McKinley Inc. Albert L. Berriz 273.0 254.0 7.5 NA NA Real estate investment, property management, receiverships and 63. (734) 769-8520; www.mckinley.com vice president and managing workouts, asset management, leasing and brokerage, value director, residential real estate creation and dispositions 64. EP Management Corp. E David Treadwell 266.0 328.0 -18.9 8 350 Products for the automotive, defense, aerospace, (313) 749-5500; www.epcorp.com president, CEO and COO telecommunications and other arenas Prestolite Electric Holding Inc. Joe LeFave 260.0 B 260.0 0.0 NA NA Manufactures starter motors and alternators (734) 582-7200; www.prestolite.com CEO; Benson Woo 65. CFO and Dennis Chelminski vice president and controller 66. Silent Call Communications Inc. George Elwell 250.0 NA NA NA NA Manufacturer and distributor (248) 673-7353; www.silentcall.com president

B Crain's estimate. C Estimate from the Automotive Aftermarket Suppliers Association Top 100 list. D Plastics News estimate. E EP Management Corp. was formerly EaglePicher Corp., which exited bankruptcy in 2009. Continued on Page 26 LIST RESEARCHED BY ANNE MARKS DBpageAD.qxp 5/19/2011 11:23 AM Page 1

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Page M26 CRAIN’S DETROIT BUSINESS June 6, 2011

CRAIN'S LIST: PRIVATE 200 Ranked by 2010 revenue

From Page 24 Full-time local Worldwide Company Revenue 2010 Revenue 2009 employees employees Rank Phone; website Top executive ($000,000) ($000,000) Percent change Jan. 2011 Jan. 2011 Type of business 67. Midwest Health Plan Inc. Mark Saffer $248.5 $224.2 10.8% 72 72 HMO (313) 581-3700; www.midwesthealthplan.com president and CEO 68. Stewart Management Group Inc. Gordon Stewart 242.5 189.5 28.0 90 402 Automobile dealerships (313) 432-6200; www.gordonchevrolet.com president 69. John E. Green Co. Peter Green 240.0 210.0 14.3 70 NA Mechanical and fire protection contractor (313) 868-2400; www.johnegreen.com president and CEO 70. Belle Tire Distributors Inc. Don Barnes Jr. 235.0 B 225.0 B 4.4 NA NA Retailer of tires and automotive services (313) 271-9400; www.belletire.com president 71. United Road Services Inc. Michael Wysocki 230.0 198.0 16.2 300 1,400 Vehicle logistics for vehicle manufacturers, remarketers, (734) 947-7900; unitedroad.com CEO auctions, dealers and internet vehicle transactions nationally. VisionIT David Segura 230.0 101.0 127.7 339 950 IT managed services, staffing and vendor management 71. (877) 768-7222; www.visionit.com CEO and Christine Rice president 73. Saturn Electronics & Engineering Inc. Wally Tsuha 227.0 141.6 60.3 66 1,757 Electronics, solenoids, and wiring systems and components (248) 853-5724; www.saturnee.com chairman General RV Center Robert Baidas 226.0 150.0 50.7 320 450 Recreational vehicle and trailer dealership 74. (248) 349-0900; www.generalrv.com CEO and Loren Baidas president and chairman 75. Commercial Contracting Group William Pettibone 224.0 135.0 65.9 122 165 General contractor, machinery installer (248) 209-0500; www.cccnetwork.com chairman 76. NYX Inc. Chain Sandhu 223.0 180.0 23.9 NA NA Automotive interiors and under-hood plastic moldings (734) 462-2385; www.nyxinc.com chairman 77. SET Enterprises Sid Taylor 221.0 171.0 29.2 124 250 Steel processing and sales (586) 573-3600; www.setenterprises.com chairman and CEO 78. JAC Products Inc. Jack Falcon 220.0 B 173.0 27.2 NA NA Automotive supplier of functional exterior trim (248) 874-1800; www.jacproducts.com president and CEO 79. Crain Communications Inc. Keith Crain 219.0 196.5 11.5 285 825 Publisher of business, trade and consumer publications and (313) 446-6000; www.crain.com chairman related websites Roush Enterprises C Evan Lyall 215.3 161.5 33.3 1,721 1,751 Engineering, product development, and manufacturing suppliers 80. (800) 215-9658; www.roush.com president and CEO to the automotive, consumer product, medical device, and theme park industries 81. Detroit Lions Inc. William Clay Ford Sr. 212.0 B 210.0 D 1.0 NA NA National Football League franchise (313) 216-4000; www.detroitlions.com chairman and owner 82. Aristeo Construction Co. Joseph Aristeo 206.0 103.0 100.0 410 175 Construction manager, general contractor, design-build, facilities (734) 427-9111; www.aristeo.com president management contractor Strategic Staffing Solutions Inc. Cynthia Pasky 205.0 171.0 19.9 497 1,787 Consulting and staff augmentation services, vendor management 83. (313) 596-6900; www.strategicstaff.com president and CEO programs, executive search services, call center technology and an IT development center 84. Williams International Co. LLC Gregg Williams 200.0 E 200.0 E 0.0 352 669 Designs, develops, manufactures and services small gas-turbine (248) 624-5200; www.williams-int.com chairman, CEO and president engines for business jets, missiles and power generation 84. Contractors Steel Co. Donald Simon 200.0 150.0 33.3 160 280 Steel service center (734) 464-4000; www.contractorssteel.com president and CEO 86. Motor City Electric Co. Dale Wieczorek 190.5 182.0 4.7 521 819 Electrical contractor (313) 921-5300; www.mceco.com chairman, president and CEO 87. The Bartech Group Inc. Jon Barfield 190.0 185.0 2.7 1,197 2,830 Human capital and staffing services (734) 953-5050; www.bartechgroup.com president SmithGroup Inc. Jeffrey Hausman 179.7 166.3 8.0 154 755 Architecture, engineering, interiors and planning (313) 983-3600; www.smithgroup.com Detroit office director and Carl 88. Roehling president and CEO Roncelli Inc. Gary Roncelli 176.0 139.0 26.6 187 NA Construction services, program management, construction (586) 264-2060; www.roncelli-inc.com chairman and CEO and Thomas management, design and build 89. Wickersham president and COO U.S. Manufacturing Corp. Brian Simon 176.0 123.0 43.1 NA NA Manufacturer of variable wall axle housings, axle shafts, 89. (586) 467-1600; www.usmfg.com president and CEO transmission shafts and driveline components for the transportation industry Active Aero Group-USA Jet Airlines Chris Healy 175.0 114.0 53.5 NA NA Air freight and ground expediting, private and public charters 91. (734) 547-7200; www.activeaero.com; president and Brian Hermelin www.usajetairlines.com chairman 92. Dykema Gossett PLLC Rex Schlaybaugh Jr. 174.9 175.8 -0.5 343 684 Law firm (313) 568-6800; www.dykema.com CEO and chairman Altair Engineering Inc. James Scapa 172.0 139.0 23.7 492 1,465 Global software and technology company focused on 93. (248) 614-2400; www.altair.com chairman and CEO engineering simulation, advanced computing, enterprise analytics and product development Erhard BMW Winfried Dahm 169.7 152.2 11.5 165 NA Automobile dealership (248) 642-6565; www.worldoferhard.com president and co-owner and 94. Angie Dahm-Hovey owner Hiller Inc. James Hiller 167.0 157.0 6.4 NA NA Grocer 95. (248) 355-2122; www.hillers.com CEO and Justin Hiller vice president 96. Fisher & Co. Inc. Alfred Fisher III 166.0 150.0 10.7 419 1,059 Automotive seating components (586) 746-2000; www.fisherco.com chairman and CEO 97. US Farathane Corp. Andrew Greenlee 161.0 128.0 25.8 843 1,000 Plastic injection molder, extruder, thermal compression molder (248) 754-7000; www.usfarathane.com president and CEO 98. Snethkamp Automotive Family Mark Snethkamp 157.0 146.0 7.5 189 NA Automobile dealerships (313) 868-3300; www.snethkamp.com president 98. Prestolite Wire LLC Greg Ulewicz 157.0 B 157.0 B 0.0 NA NA Maker of ignition wire sets, battery cables, harnesses, automotive (248) 355-4422; www.prestolitewire.com president and CEO wire, other cables 100. Ervin Industries Inc. John Pearson 154.1 125.5 22.8 NA 337 Manufacturer of steel and stainless steel particles; engaged in (734) 769-4600; www.ervinindustries.com president and CEO commercial equipment leasing

B Crain's estimate. C Figures do not include the motorsports employee counts or revenue of Roush Fenway. D From Forbes. E Company estimate. Continued on Page 27 LIST RESEARCHED BY ANNE MARKS 20110606-NEWS--0027-RG1-CCI-CD_-- 6/1/2011 11:43 AM Page 1

June 6, 2011 CRAIN’S DETROIT BUSINESS Page M27

CRAIN'S LIST: PRIVATE 200 Ranked by 2010 revenue

From Page 26 Full-time local Worldwide Company Revenue 2010 Revenue 2009 employees employees Rank Phone; website Top executive ($000,000) ($000,000) Percent change Jan. 2011 Jan. 2011 Type of business CareTech Solutions Inc. James Giordano $154.0 $153.3 0.5% 592 892 Information-technology and Web products and services provider 101. (248) 823-0800; www.caretech.com president and CEO for more than 150 U.S. hospitals and health care systems Inland Pipe Rehabilitation James Tighe 150.0 125.0 20.0 102 520 Underground construction and rehabilitation; green underground 102. (313) 899-3014; www.teamipr.com president, Great Lakes region solutions provider Miller, Canfield, Paddock and Stone PLC Michael Hartmann 146.6 143.0 2.5 418 690 Law firm 103. (313) 963-6420; www.millercanfield.com CEO Jim Riehl's Friendly James Riehl Jr. 146.0 134.0 8.9 201 NA Automobile dealership 104. Automotive Group Inc. president and CEO (586) 979-8700; www.jimriehl.com Chase Plastic Services Inc. Kevin Chase 134.5 85.0 58.2 38 68 Specialty engineering thermoplastics distributor 105. (248) 620-2120; www.chaseplastics.com president and Carole Chase vice president Dantom Systems Inc. Timothy Schriner 130.6 103.0 26.8 128 170 Document processing, health care billing and accounts 106. (248) 567-7300; www.dantomsystems.com CEO and president receivable services Wright & Filippis Inc. Anthony Filippis 129.0 133.0 -3.0 765 921 Provider of home medical equipment, respiratory and prosthetic 107. (248) 829-8200; www.firsttoserve.com president and CEO and orthotic services Briarwood Ford Inc. Eddie Hall Jr. 124.2 111.4 11.5 151 NA Automobile dealership 108. (734) 429-5478; www.briarwoodford.com president Aco Inc. Snyder Dick 122.5 125.4 -2.3 414 1,084 Retail hardware store chain 109. (248) 471-0100; www.acohardware.com president Phillips Service Industries Inc. William Phillips 117.0 114.0 2.6 NA NA Defense systems, homeland security, aircraft components, (734) 853-5000; www.psi-online.com chairman welding machines, rugged electronics, wireless networks, 110. automated assembly systems, repair services, uninterruptable power supplies Acro Service Corp. Ron Shahani 117.0 102.0 14.7 929 3,193 Staff augmentation (IT, engineering, office support), outsourcing 110. (734) 591-1100; www.acrocorp.com president, chairman and CEO and IT and engineering consulting Bill Perkins Automotive Group Bill Perkins 115.6 105.5 9.6 116 NA Automobile dealerships 112. (586) 775-8300; merollischevycars.com president Intraco Corp. Nicola Antakli 113.1 102.6 10.2 40 270 Export management and international marketing 113. (248) 585-6900; www.intracousa.com chairman and CEO HTC Global Services Inc. Madhava Reddy 113.0 111.0 1.8 225 4,200 Application development and maintenance, business process 114. (248) 786-2500; www.htcinc.com president and CEO management, document and content management and PMO services Impact Steel Group Mike Easlick 112.6 89.3 26.1 16 22 Flat-rolled steel distributor (248) 414-6100; impactsteel.com CEO, Jeff Jaye 115. president, Rob Feldman CFO and Darryl Waugh chairman Chelsea Milling Co. Howdy Holmes 110.0 B NA NA 325 NA Retail prepared baking mixes 116. (734) 475-1361; www.jiffymix.com CEO, chairman and president Vesco Oil Corp. Donald Epstein 108.2 100.8 7.4 121 182 Distributor of auto and industrial lubricants and chemicals, auto 117. (248) 557-1600; www.vesco-oil.com president and CEO aftermarket products Urban Science Inc. James Anderson 105.0 84.5 24.3 238 NA Global retail marketing consulting firm 118. (313) 259-9900; www.urbanscience.com president and CEO Tom Holzer Ford Inc. Constance Holzer 104.3 84.7 23.2 99 NA Automobile dealership 119. (248) 474-1234; www.holzerford.com president and CEO Fori Automation Mike Beck 103.0 91.0 13.2 160 365 Industrial automation equipment (586) 247-2336; www.foriauto.com vice president of operations 120. Paul Meloche vice president of sales Avis Ford Inc. Walter Douglas Sr. 102.9 86.5 18.9 102 NA Automobile dealership 121. (248) 355-7500; www.avisford.com chairman and CEO DeMaria Building Co. Inc. Richard DeMaria 102.0 91.3 11.7 135 135 General contracting, design and build, construction management 122. (313) 870-2800; www.demariabuild.com CEO and Joseph DeMaria Jr. president Rush Trucking Corp. Andra Rush 100.0 90.0 11.1 311 NA Motor carrier, logistics management 123. (734) 641-1700; www.rushtrucking.com president and CEO Milosch's Palace Donald Milosch 98.5 91.0 8.2 146 NA Automobile dealership 124. Chrysler-Jeep-Dodge Inc. president (248) 393-2222; www.palacecj.com The Ideal Group Inc. Frank Venegas Jr. 97.1 89.8 8.1 167 NA General contractor, handrail, guardrail and bumper post sleeve 125. (313) 849-0000; www.weareideal.com chairman and CEO manufacturer, indirect material management Dearborn Mid-West Conveyor Co. Anthony Rosati 95.0 NA NA NA NA Material handling systems 126. (734) 288-4400; www.dmwcc.com president W.B. Doner & Co. David DeMuth 95.0 142.0 -33.1 395 535 Advertising agency (248) 354-9700; www.doner.com co-CEO, president 126. Rob Strasberg co-CEO, chief creative officer Macomb Pipe & Supply Co. Inc. Keith Schatko 92.5 120.0 -22.9 126 235 Distributor of pipe, valves, fittings, heating and cooling, control (586) 274-4100; www.macombgroup.com vice president and instrumentation, boilers, pumps repair, steam products, 128. William McGivern Jr. sanitary piping products, hose assemblies, fire protection and CEO AWWA products George W. Auch Co. Vincent DeLeonardis 92.2 104.1 -11.4 8 83 General contractor and construction manager 129. (248) 334-2000; www.auchconstruction.com president and CEO Van Pelt Corp. Roger VanPelt 91.0 82.5 10.3 145 300 Steel distributor 130. (313) 365-3600; www.servicesteel.com CEO and president Diversified Computer Supplies Inc. Joseph Hollenshead 89.2 78.5 13.6 40 84 Distributor of imaging/printer supplies 131. (800) 766-5400; www.dcsbiz.com chairman, president and CEO Village Ford Inc. James Seavitt 89.0 86.0 3.5 142 NA Automotive dealership 132. (313) 565-3900; www.villageford.com president and CEO Ghafari Inc. Yousif Ghafari 87.5 75.0 16.7 540 763 Architectural engineering, manufacturing engineering, process 133. (313) 441-3000; www.ghafari.com chairman engineering, 3D/BIM, consulting, professional staffing

B Crain's estimate. LIST RESEARCHED BY ANNE MARKS Continued on Page 28 20110606-NEWS--0028-RG1-CCI-CD_-- 6/1/2011 11:44 AM Page 1

Page M28 CRAIN’S DETROIT BUSINESS June 6, 2011

CRAIN'S LIST: PRIVATE 200 Ranked by 2010 revenue

From Page 27 Full-time local Worldwide Company Revenue 2010 Revenue 2009 employees employees Rank Phone; website Top executive ($000,000) ($000,000) Percent change Jan. 2011 Jan. 2011 Type of business KC Integrated Services LLC Kenyon Calendar $87.4 $63.0 38.7% NA NA Logistics, freight management, warehousing, parts sequencing, 134. (800) 476-6317; www.kcintegrated.com CEO subassembly and more Gonzalez Design Group Gary Gonzalez 85.0 85.0 0.0 420 NA Design engineering, staffing, manufacturing technologies, 135. (248) 548-6010; www.gonzalez-group.com president and CEO production systems, other GlobalHue Donald Coleman 82.9 125.1 B -33.7 190 399 Advertising and marketing 136. (248) 223-8900; www.globalhue.com chairman and CEO Hatch Stamping Co. Ronald Hatch 81.0 60.0 C 35.0 239 348 Manufactures metal automotive stampings, assemblies, 137. (734) 475-8628; www.hatchstamping.com chairman and CEO progressive dies and prototypes Market Strategies International Andrew Morrison 80.7 80.1 0.7 110 1,364 Market research consultancy 138. (734) 542-7600; www.marketstrategies.com chairman and CEO Zatkoff Seals & Packings Gary Zatkoff 80.5 61.4 31.1 59 163 Distributor of seals and packings; manufacturer of gaskets 139. (248) 478-2400; www.zatkoff.com president and CEO Edwards Bros. Inc. John Edwards 77.0 75.0 2.7 400 700 Manufacturer of books and journals 140. (734) 769-1000; www.edwardsbrothers.com president and CEO Varilease Technology Finance Group Robert VanHellemont 75.0 NA NA 10 85 Lease and loan equipment financing 141. (248) 366-5300; www.varilease.com president VPSI Inc. Jeff Henning 72.0 71.0 1.4 50 NA Employee transportation, commuter vanpooling 142. (248) 597-3500; www.vpsiinc.com president and CEO Ram Construction Services Robert Mazur 70.3 63.0 11.6 286 500 Waterproofing, damp proofing, caulking, building restoration 143. (734) 464-3800; www.ramservices.com president and concrete restoration, deck coating MPS-GK LLC Charlie Williams 69.0 NA NA NA NA Design, build and service industrial paint systems 144. (313) 841-7588; www.mpsgrp.com chairman and CEO Madison Electric Co. Joseph Schneider 66.4 55.0 20.7 130 130 Electrical, electronic and automation distributor 145. (586) 825-0200; www.madisonelectric.com president Synergy Group Inc. Ennio "Pete" Petrella 65.3 81.2 -19.6 22 NA Design and build, general contractor, construction management 146. (248) 740-7400; www.synergygroup.biz principal Arrow Uniform Rental Thomas Andris 65.2 59.7 9.2 NA 550 Uniform rental and sales 147. (313) 299-5000; www.arrowuniform.com chairman Navigating Business Space Inc. Richard Schwabauer 65.0 61.0 6.6 130 NA Furniture, flooring and audio visual dealer 148. (248) 823-5400; www.navbus.com owner and president Ansara Restaurant Group Inc. Victor Ansara 64.1 61.7 4.0 1,925 2,625 Restaurant 149. (248) 848-9099 president International Extrusions Nicholas Noecker 64.0 62.0 3.2 155 NA Manufacturer of aluminum extruded profiles, powder-coat 150. (734) 427-8700; www.extrusion.net president and CEO painting and fabrication facilities Guardian Alarm Co. Douglas Pierce 64.0 60.0 6.7 961 1,028 Alarms, guard services, medical monitoring 150. (248) 423-1000; www.guardianalarm.com CEO Corrosion Fluid Products Corp. Joseph Andronaco 61.5 61.2 0.5 29 128 Industrial distribution of process pumps, automated valves, (248) 478-0100; www.corrosionfluid.com CEO chemical piping systems, hoses and pump repair, service sanitary 152. and high purity markets covering seven states with eight stocking branches. Markets include steel, energy, chemical, pharmaceutical, auto and food and beverage Advantage Management Group- Kelsey Schwartz and Reginald 61.0 55.2 10.5 1,600 NA Nursing homes 153. Hartsfield The Manors owners (248) 569-8400; themanors.net TNG Worldwide Larry Gaynor 60.0 64.0 -6.3 180 230 Manufacturer, importer, distributor and educator of products for 154. (248) 347-7700; www.tngworldwide.com president and CEO the salon, spa and tanning markets TTi Global Lori Blaker 59.4 47.0 26.4 163 1,200 Staffing, outsourcing and training 155. (248) 853-5550; www.ttinao.com president and CEO MPS Trading LLC Charlie Williams 59.1 35.4 67.1 5 5 Scrap metal management 156. (313) 841-7588; www.mpsgrp.com chairman and CEO Frank Rewold and Son Inc. Frank Rewold 58.3 44.9 29.9 NA NA Construction management, general contracting, design build 157. (248) 601-1215; www.frankrewold.com president and CEO Roseville Chrysler Jeep Inc. Michael Riehl 58.1 51.5 13.0 81 NA Automobile dealership 158. (586) 859-2500; www.mikeriehls.com president Unibar Services Inc. G. Jean Davis 58.0 55.0 5.5 NA NA Utility support servicers including contract meter reading, AMI/ (734) 769-2600; www.unibarinc.com president and CEO AMR meter installation, field credit services, service diversion, 159. John McManus damage prevention and underground facility locating, damage COO investigation Flexible Products Doug Reid 58.0 42.0 38.1 240 240 Molded rubber products for chassis and underbody 159. (248) 852-5500; www.flexible-products.com president Kar's Nuts Nick Nicolay 57.5 47.7 20.5 137 163 Snack food manufacturing and distribution 161. (248) 588-1903; www.karsnuts.com president and CEO Better Made Snack Foods Inc. Salvatore Cipriano 56.1 55.0 2.0 200 247 Snack foods 162. (313) 925-4774; www.bettermadesnackfoods.com CEO Rodgers Chevrolet Inc. Pamela Rodgers 54.2 40.0 35.4 62 NA Automobile dealership 163. (734) 676-9600; www.rodgerschevrolet.com president T.H. Marsh Construction Co. Ryan Marsh 54.0 65.0 -16.9 NA NA Construction Management 164. (248) 586-4130; www.thmarsh.com president and COO Domestic Linen Supply & Laundry Co. Bruce Colton 53.0 52.5 1.0 90 565 Rental and laundering of uniforms, dust-control products, wiping 165. (248) 737-2000; www.domesticuniform.com president cloths and other reusable textiles. Restroom management services Colasanti Cos. Christopher Colasanti 51.9 47.5 9.2 NA NA Construction 166. (313) 567-0060; www.colasantigroup.com president Skyway Precision Inc. William Bonnell 50.9 35.4 43.8 196 196 CNC production machining 167. (734) 454-3550; www.skywayprecision.com president

B GlobalHue provided billings of $833.7 million for 2009. Revenue is an estimate based on 15 percent of billings. C Crain's estimate.

LIST RESEARCHED BY ANNE MARKS Continued on Page 29 20110606-NEWS--0029-RG1-CCI-CD_-- 6/1/2011 11:44 AM Page 1

June 6, 2011 CRAIN’S DETROIT BUSINESS Page M29

CRAIN'S LIST: PRIVATE 200 Ranked by 2010 revenue

From Page 28 Full-time local Worldwide Company Revenue 2010 Revenue 2009 employees employees Rank Phone; website Top executive ($000,000) ($000,000) Percent change Jan. 2011 Jan. 2011 Type of business Proper Group International Geoffrey O'Brien $50.0 $42.0 19.0% NA NA Plastic injection molds, injection molded parts, polyurethane & 168. (586) 779-8787; www.propergroupintl.com CEO Skin Form tooling, microcellular foam tooling, rapid prototyping, contract services and aerospace machining. Motor City Stamping Inc. Judith Kucway 49.0 32.0 53.1 NA NA Stamping plant, automotive welding, assembly, dies and 169. (586) 949-8420; www.mcstamp.com CEO and CFO prototypes

Glassman Automotive Group Inc. George Glassman 46.1 50.2 -8.2 67 NA Automobile dealerships 170. (800) 354-5558; www.glassmanautogroup.com president

Olga's Kitchen Inc. Matt Carpenter 46.0 43.0 7.0 NA NA Restaurant chain 171. (248) 362-0001; www.olgaskitchen.com president and CEO

Wade Trim Douglas Watson 45.0 48.9 -7.9 114 321 Consulting engineering and planning services 172. (313) 961-3650; www.wadetrim.com CEO

MPS Group Inc. Charlie Williams 44.5 33.7 32.2 94 187 Facility management, industrial and environmental cleanup, 173. (313) 841-7588; www.mpsgrp.com chairman and CEO paint shop cleaning

Benlee Inc. Greg Brown 42.0 25.0 68.0 28 88 Manufacturer of roll-off trucks and trailers as well as a recycler of 174. (734) 722-8100; www.benlee.com president metal commodities

Link Engineering Co. Roy Link 42.0 45.0 -6.7 205 270 Manufacturer of testing equipment and testing services 174. (734) 453-0800; linkeng.com president and CEO

Auburn Pharmaceutical Co. Jeffrey Farber 41.5 38.0 9.1 73 73 Distributor of generic drugs 176. (248) 526-3700; auburngenerics.com CEO, chairman and president

Load One Transportation & Logistics John Elliott 41.4 32.5 27.4 260 315 Air charter, ground expedite, truckload, partial truckload, flatbed, 177. (734) 947-9440; www.load1.com president and CEO drop-deck flats, curtainside flatbeds, truckload and expedite brokerage Loc Performance Products Inc. Victor Vojcek 41.3 60.1 -31.3 190 190 Machining and assembly of driveline, suspension and engine 178. (734) 453-2300; www.locper.com CEO components for military and off-road vehicles

ePrize LLC Matt Wise 41.0 36.1 13.6 260 260 Digital engagement agency 179. (248) 543-6800; www.eprize.com CEO

The Crown Group Inc. William Baer 40.7 27.0 50.6 242 417 Applies coatings to metal and plastic products; module-assembly 180. (586) 575-9800; www.thecrowngrp.com chairman and CEO work; sequencing, warehousing

Wolverine Truck Sales Inc. Lynn Terry 40.4 36.0 12.3 99 NA Truck sales, parts and service 181. (313) 849-0800; www.wolverinegroup.com president

Systrand Manufacturing Corp. Sharon Cannarsa 40.0 27.5 45.5 163 220 Precision machining and assembly 182. (734) 479-8100; www.systrand.com president and CEO

Malloy Inc. William Upton 40.0 40.0 0.0 224 229 Book printer and binder 182. (734) 665-6113; www.malloy.com president

Shaw Electric David Kurtz 39.8 36.1 10.2 141 141 Electrical and teledata contractor 184. (248) 228-2000; www.shawelectric.com chairman

Lowry Computer Products Inc. Michael Lowry 38.0 34.0 11.8 78 142 National manufacturer and systems integrator specializing in 185. (810) 229-7200; www.lowrycomputer.com president and CEO wireless, RFID, bar code and data collection solutions

The Epitec Group Inc. Jerome Sheppard 37.6 31.0 21.3 600 675 Technology staffing and computer services 186. (248) 353-6800; www.epitecgroup.com CEO

Big Boy Restaurants International LLC Keith Sirois 37.0 47.0 -21.3 210 361 Restaurants, food manufacturer 187. (586) 759-6000; www.bigboy.com CEO

Harley Ellis Devereaux Corp. Gary Skog 36.9 39.5 -6.6 141 234 Architecture, engineering, strategic planning, program 188. (248) 262-1500; www.harleyellisdevereaux.com chairman and CEO management, real estate, and more

O'Brien Construction Inc. Timothy O'Brien 36.3 24.3 49.8 27 NA General contractor and construction manager 189. (248) 334-2470; www.obriencc.com president

Kasco Inc. Stephen Kassab 36.0 35.9 0.3 53 NA Construction management, design build, construction program 190. (248) 547-1210; www.kascoinc.com president and Michael Engle administration vice president Multi-Bank Securities Inc. David Maccagnone 35.7 40.2 -11.3 68 93 Institutional fixed-income broker/dealer U.S. government bonds, 191. (800) 967-9045; www.mbssecurities.com CEO corporate bonds, certificates of deposit

Mars Advertising Inc. Ken Barnett 35.5 34.3 3.6 NA NA Advertising agency 192. (248) 936-2200; www.marsusa.com CEO

Rapid Global Business Solutions Inc. Nanua Singh 35.5 18.5 91.9 624 1,018 Staffing engineering, IT and professional 192. (248) 589-1135; www.rgbsi.com president and CEO

Sachse Construction & Development Co. Todd Sachse 35.3 27.6 27.9 42 NA General contracting, construction management, design build and 194. LLC president tenant coordination (248) 647-4200; www.sachseconstruction.com Master Automatic Inc. Mark Evasic 35.0 28.0 25.0 150 NA Precision machining automotive components 195. (734) 414-0500; www.masterautomatic.com president

Ram's Horn Eugene Kasapis 34.5 36.6 -5.9 NA 1,050 Family restaurant chain franchisor 196. (248) 350-3430; ramshornrestaurants.com president and CEO

NTH Consultants Ltd. Keith Swaffar 33.2 37.7 -12.0 NA NA Infrastructure engineering and environmental services 197. (313) 237-3900; www.nthconsultants.com president and CEO

Saturn Electronics Corp. Nagji Sutariya 33.1 21.4 54.6 175 175 Printed circuit board manufacturing 198. (734) 941-8100; www.saturnelectronics.com president

Almetals Inc. James Chain 33.0 29.0 13.8 20 25 Metal slitter, distributor, warehouser and processing service 199. (248) 348-7722; www.almetals.com president center

Plex Systems Inc. Mark Symonds 33.0 26.1 26.7 164 175 Creates and hosts manufacturing management software for 199. (248) 391-8001; www.plex.com president and CEO automotive, aerospace, defense, life sciences, food and other manufacturers in highly regulated industries

LIST RESEARCHED BY ANNE MARKS DBpageAD.qxp 5/16/2011 10:04 AM Page 1

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June 6, 2011 CRAIN’S DETROIT BUSINESS Page M31

A CONVERSATION WITH DETROIT-AREA GRADUATE DEGREE PROGRAMS Find a school on Crain’s list, Page 40 Check out new programs, Pages 39, 42 Ron Tracy, Oakland University business education OU program “ The good professors will rise preps actuaries to the top without tenure. … It’s In 2010, a study published by job search website CareerCast ranked not a question of students actuary as the third-best job in the U.S. for work environment, salary getting value for their money, and job security. Actuaries use mathematical and it’s about performance. statistical methods to assess risk ” in many industries, predominantly Jane Fitzgibbon, Wayne State University in the insurance and finance sectors. Companies like PricewaterhouseCoopers, Ford Motor Co. and Blue Cross Blue Shield of Michigan all use actuaries to assess risk factors involved in their respective work. In the fall of 2010, Oakland Tension University began offering a bachelor’s degree in actuarial science to provide students with opportunities in the growing field. Crain’s higher education reporter Dustin Walsh chatted with Ron Tracy, associate professor of economics at OU and spearhead over of the new program. What does an actuary really do? The field is heavily mathematical, statistical and financial. Actuaries evaluate choices for firms that get involved in decision-making. As a

result, firms hire them in benefits JOHN SOBCZAK areas. Insurance companies have tenure oodles of them. They look at everything from age distribution to employee risk, to determine what benefit structure is relevant, to Budget pressures drive up nontenured ranks, spark debate over systems what kind of insurance plan is needed. BY DUSTIN WALSH ty budget constraints will sur- CRAIN’S DETROIT BUSINESS face, and tenure is expected to Is this a growing field? It’s a THE NARROWING TENURE TRACK be a topic of discussion growing small field. Starting ane Fitzgibbon, a full-time Percentages of tenured and tenure-track faculty at Michigan’s 15 salary is around $50,000 to public universities show most numbers slipping: among university presidents. lecturer for business com- Under Snyder’s plan, pub- $70,000. The insurance industry J munication at Wayne State 2001 2009 is a growing industry, as well. lic universities University, prefers existing Central Michigan University 36.2% 29.1% Risk management is so important will receive a outside the tenure system. Eastern Michigan University 39.1% 37.1% for firms these days. The whole 15 percent drop in idea of planning at a corporate “Tenure has outlived its Ferris State University 63.5% 58.6% state allocations level is much more sophisticated usefulness,” Fitzgibbon said. Grand Valley State University 46.4% 46.1% in 2012, provided than it was 10 years ago. Firms “The good professors will rise Lake Superior State University 56.1% 62.5% they keep tuition are trying to use every tool at to the top without tenure. … Michigan State University 23.6% 32% increases below their disposal to make the best It’s not a question of students Michigan Technological University 37.3% 33.7% the five-year aver- getting value for their money, decisions. Northern Michigan University 46.7% 44.1% age. Otherwise, it’s about performance.” cuts will be from What makes OU’s program Fitzgibbon said modern Oakland University 52.7% 36.1% different? We started this program 19 percent to teaching environments mean Saginaw Valley State University 85.6% 34.4% Liebold because the number of actuaries 22 percent. some tenure requirements University of Michigan 27% 23.9% needed far outnumbers the For example, the University University of Michigan-Dearborn 36.7% 48.6% number produced at colleges. The and structure no longer make of Michigan will receive new version of actuarial science is sense for many faculty mem- University of Michigan-Flint 38.5% 31% $255 million in allocations, also heavily into business. Ours is bers. Wayne State University 23.3% 27.2% down from $325 million in fis- a joint program where the students “I can publish or present a Western Michigan University 41.8% 35.1% cal 2011. actually get a minor in finance and paper if I want, but I don’t Source: National Center for Education Statistics In Michigan, the appropria- a minor in math in addition to the have to,” she said. “I’m not tions subcommittee on higher actuarial science degree. Our under the rigid requirements study by the U.S. Department of Tenure is expected to con- education discussed tenure graduates will graduate as of tenure.” Education. tinue its slide as state alloca- with the state’s college presi- actuaries, passing first two Nationally and in Michi- In Michigan, the share of tions plummet and budget dents in March during a se- professional tests, so they’ll be gan, tenured and tenure-track tenured and tenure-track in- pressures rise, according to ries of hearings on various ready to hit the market. instructors are on the decline. structors has dropped to experts. budget issues. Institutions increasingly rely 62 percent of instructors in The shift from institutional “Anytime the state Legisla- on part-time adjuncts and 2009 from 71 percent in 1993, pedagogues to part-time in- ture wants to use the appro- full-time nontenured faculty according to data compiled by structors who often work priation process to deal with a If you know as budget pressures mount. the National Center for Educa- elsewhere, either in the pri- substantive issue like tenure someone interesting Nationally, the share of tion Statistics. vate sector or at another in- takes us down a dangerous in auto supply, the tenured and tenure-track in- At the state’s 15 public uni- stitution, is often fueled by path,” said Bill Liebold, presi- steel industry or structors plummeted from versities, the number of university presidents and dent of Bloomfield Hills-based higher education 71 percent of instructors in tenured and tenure-track in- boards during belt-tighten- Dustin Walsh should The Liebold Group LLC, adjunct 1993 to 59 percent in 2009, structors dropped to 38.6 per- ing. interview, call (313) professor at Oakland University 446-6042 or write while the number of instruc- cent in 2009 from 43.6 percent And under Gov. Rick Sny- and former president of the [email protected] tors has grown by nearly 20 in 2001. (See accompanying der’s proposed two-year bud- percent, according to a 2010 chart.) get plan, even more universi- See Tenure, Page 32 20110606-NEWS--0032-RG1-CCI-CD_-- 6/1/2011 5:17 PM Page 1

Page M32 CRAIN’S DETROIT BUSINESS June 6, 2011 Focus: Business Education Tenure: Higher-ed cost pressures drive up nontenured ranks ■ From Page 31 Michigan Colleges Foundation. “Are are creating various policies as mand for the services of highly Liebold said. “Tenure-track faculty are the we willing to give up a quality edu- something you sell as opposed to a skilled people,” said Charles Bal- He points to studies that link the foundation of every university, cation for cost?” process students are engaged in.” lard, economist at MSU. “People use of nontenure-track faculty to every college, and is a stable work- Tenure supporters say the sys- University presidents increas- complain professors make too decreased graduation and reten- force — a work- tem was designed to allow profes- ingly prefer to use nontenured fac- much, but we’re now in a global tion rates. force that is pro- sors the ability to discuss and ulty, according to a May survey by market, and without tenure, we Fitzgibbon said she doesn’t buy vided the teach contentious topics without the Pew Research Center and The may lose the best talent to the Lon- into the connection. resources, the the fear of repercussions, said Chronicle for Higher Education. don School of Economics or even “(Nontenured faculty) can do time and the as- John Curtis, director of research Of those surveyed, 69 percent Ohio State.” things like join committees and sistance for a and public policy for the Washing- prefer a nontenured workforce. Martha Pollack, vice provost for help students more because we quality educa- ton, D.C.-based American Associa- Richard Vedder, tenured profes- academic and don’t have the burden,” she said. tion,” he said. tion of University Professors. sor of economics at Ohio University, budgetary af- “I’m on several committees and ac- “Part-time and “If faculty is constantly worry- said the figure reflects the benefits fairs and tively involved in how the stu- nontenured facing about losing their jobs from do- of nontenured and adjunct faculty. tenured profes- dents are educated.” ulty are grossly ing something controversial, they “The university presidents can sor of computer Ohio University’s Vedder said Hecker underpaid, are will be self-censoring,” he said. substitute expensive labor for science and en- he expects the battle over tenure to often running around campuses “They will be hesitant to challenge cheap labor,” he said. “Adjuncts gineering at heat up. with no offices. They are often students by holding them to high and nontenured faculty are enor- UM, said ad- “The tension between the haves great teachers, but aren’t provided expectations, and that deprives mously more flexible; presidents juncts and non- and the have-nots is growing, and the resources to be successful.” students of a high-quality experi- are able to hire and fire when en- tenured faculty there’s a growing union presence The Michigan AFT represents ence.” rollments or budgets rise and fall.” are hired for because of this,” Vedder said. nontenured faculty at Wayne But Liebold said trends in other Adjuncts are often hired by se- Pollack their profession- “We’re going to see more civil wars State; Eastern Michigan University; states point to more concern about mester and can make as little as al wisdom, not for their reduced break out at universities across the UM’s campuses in Ann Arbor, costs than about preserving $1,500 per course. At Michigan State paychecks. country as their (adjunct and non- Dearborn and Flint; MSU; Western tenure. Cash-strapped states Utah University, part-time adjuncts and “When we bring lecturers on tenure) numbers rise.” Michigan University; Central Michigan and Florida recently introduced nontenured faculty or lecturers board, we try to do it for education- The Michigan American Federation University and Ferris State University. legislation that would ban tenure earned an average of $44,695 in al reasons, not budgetary reasons,” of Teachers said it supports pre- AFT also represents some tenured from public universities and col- 2009, an increase of 21 percent she said. “Some courses, like engi- serving the tenure system at faculty at WSU and some commu- leges to lower costs. since 1999. neering, are better taught by lectur- Michigan universities — even nity colleges. While budget constraints have Tenured and tenure-track pro- ers with professional experience.” though more nontenured faculty The AUUP professors’ associa- forced university presidents to fessors earned an average 2009 But opponents of the trend say means more prospective union tion also represents nontenured make difficult decisions, tenure salary of $138,285, an increase of the increased use of nontenured members. faculty at several state colleges, as should be the last place presidents 52 percent since 1999. faculty is eroding the system. David Hecker, president of the well as several collective bargain- look to cut, Curtis said. “It is part “Compensation for top faculty “Adjuncts bring in viewpoints Michigan AFT, said the increased ing advocacy chapters at others. of an increasing shift at looking at has gotten way better over the past that full-time don’t have, but I use of nontenured faculty dilutes Dustin Walsh: (313) 446-6042, a college education as a consumer 20 years, and that’s because there’s think you’ll lose quality when you workplace stability, eventually [email protected]. Twitter: product,” he said. “Administrators been tremendous increase in de- go too far down the adjunct road,” damaging the education system. @dustinpwalsh

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1 Unduplicated readers 1 Media Audit: unduplicated readers 1 Accessible online to Crain readers for two weeks and the issue date is December 26, 2011 DBpageAD.qxp 5/16/2011 10:42 AM Page 1

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Basically, it comes down to our mission: Facts, ﬁgures and philosophies can only form a foundation. Ferris State University meshes theory with practice so students leave with more than just a piece of paper, they leave knowing what to do with what they know. 20110606-NEWS--0035-RG1-CCI-CD_-- 6/2/2011 2:49 PM Page 1

June 6, 2011 CRAIN’S DETROIT BUSINESS Page M35 Focus: Business Education Michael Boulus: Budget cuts, education rhetoric don’t add up

Last month, Gov. Rick Is there anything universi- Snyder signed into law ties can do to fight against the two-year budget that future cuts? cut the state’s appropria- I don’t know what we tions to public universi- can do except crisscross ties 15 percent across the the state and talk about board — under the caveat who we are and our story that the institutions keep on cost efficiencies and tuition below the average the dual role between the five-year tuition in- state government and its crease. universities, which are The losses range from gems. about $47 million at the We are acknowledged University of Michigan to as a state with some of nearly $13 million at Oak- Michael Boulus, the best public universi- Presidents ties in the county. To land University. Council, Universities and col- State Universities abandon us, like govern- leges strongly opposed of Michigan ment has over the last the funding cuts, but in- decade, leaves us ques- evitably lost as the Republican-led tioning whether they have thrown House and Senate passed the bud- in the towel on higher education. get bill before Snyder signed it in May. University presidents testified in Crain’s higher education re- March regarding a number of budget porter Dustin Walsh chatted with issues, including benefits, pay and op- Michael Boulus, executive director erations. Does this feel like microman- of the Lansing-based Presidents agement? Council, State Universities of Michi- There’s definitely concern over gan on the bill and how the state’s this unprecedented intrusion and 15 public universities will manage the government’s questionably the funding cuts over the next few flawed process of trying to manage years. us. Not only are they a junior part- What’s the tone We’re ner, but they now among university “ want to manage presidents now that discouraged. We, as our budget. the bill is law? Despite declin- The tone is, a state, are going to ing state support, “When is it (cuts) we have autono- going to end?” Ob- continue in this my, which allows viously, there’s an us to do most overall concern, path as a race to the things the state and there’s this can’t. belief that they bottom in the They want state can cut us dispro- nation. employees to cov- portionately and ” er 20 percent of know that we’ll their health bene- Michael Boulus, fits. We don’t raise tuition to Presidents Council, want an 80/20 cover a portion of State Universities of Michigan the cuts, hence the mandate. Universi- incentive to keep ty of Michigan is al- tuition low. ready at 30 percent. Our average is We’re discouraged. We, as a already above that 20 percent fig- state, are going to continue in ure. this path as a race to the bottom We act in a more fiscally respon- in the nation. And we’re upset sible manner than they do and it’s over the lip service politicians because we’re flexible. That’s what give to the importance of higher our independence and autonomy education while slamming us is all about. with cuts. We are losing because we don’t Michigan’s research universities have a presence in every district. strongly oppose the provision in the We’re an easier target to hit be- budget forcing them to report all stem cause leaders in most districts cell research done on campus. Gov. Sny- (those without a public university) der seems to agree after his legal coun- won’t catch a great deal of criti- sel deemed the provision unconstitu- cism when they go back home tional. Is this a win for universities? from Lansing. The provision is part of a terri- ble trend of government to manage Other than the cuts, what in the bill on political and religious beliefs. is most worrisome? This is just about a right-to-life en- The big issue is how the dollars dorsement. will be distributed. They put lan- They (legislators who added the guage in the bill for the second provision) have an understanding year of the budget that there will that the governor will strike it be some type of performance- down and they will get their right- based funding formula. That’s to-life vote from constituents. En- with existing dollars, not new dorsements like this are what car- funding, which creates all sorts of ry these legislators in local conflicts. elections. There’s nothing wrong with in- But the governor gets it. I don’t centivizing accountability — but it know if he can line-veto the provi- needs to be done with new dollars sion, but we know he doesn’t sup- moving forward. port it. 20110606-NEWS--0036,0037-RG1-CCI-CD_-- 6/2/2011 1:48 PM Page 1

Page M36 CRAIN’S DETROIT BUSINESS June 6, 2011 Focus: Business Education THINKBUSINESS THINK MADONNA Schools tweak websites for better marketing, use of social media 0VS4DIPPMPG#VTJOFTT programs combine classroom BY MIKE SCOTT selves directly into the content gets pinched elsewhere, like in MFBSOJOH CVTJOFTTFUIJDTBOE SPECIAL TO CRAIN’S DETROIT BUSINESS management system, said Web marketing.” real-world projects. Manager Dave Poortvliet. That has put Ross at a disadvan- The wide-ranging uses of uni- This ability of departments to tage compared with the Wharton 1VSTVFZPVSQBTTJPO versity or college websites, from add content directly allows the School at the University of Pennsylva- courting prospective students to GSPNBDDPVOUJOHBOENBSLFUJOH website to remain nia, the Harvard providing forums for students and fresh. Once ad- Business School, the to e-commerce and health care faculty to talk, have brought new ministrators or We’re constantly University of Chicago management. strategies on how those sites are department heads “ Booth School of Busi- designed and run. that have been looking at ness, the Stan- tTNBMMDMBTTFTPO Institutions are balancing the given access on ford Graduate needs of how they present their DBNQVTPOMJOF the back end of ways to School of Busi- public faces with the practical the website make ness and other tDMPTFUPXPSLIPNF matters of how to tie new ways of those edits, the add new private institu- communicating through social content goes live tions, Busch tCBDIFMPSTNBTUFSTQSPHSBNT media, video and message boards. immediately. elements said. Those are Content specific to each univer- tBTTPDJBUFDFSUJöDBUFT “The depart- the institutions sity department is often managed ments are making of inter- that Ross com- directly by department managers updates every petes with for 5IJOLJOHBCPVUB using a content management sys- day, so some of activity. the best and the CVTJOFTTFEVDBUJPO tem. This helps avert delays and the more specific ” brightest students keeps the website timely — and is information Dave Poortvliet, each year, he said. 5IJOL.BEPOOB6OJWFSTJUZ a benefit for search engine opti- changes quite a Grand Valley State University “They have sig- mization. bit,” Poortvliet nificant budgets, In the future, many schools ex- said. “The main marketing content and on an average year they can pect to adjust their sites for better stays a bit more static, but we’re outspend us significantly. Our ap- mobile compatibility, and to add constantly looking at ways to add proach now is that we need to use more interactive features. new elements of interactivity.” social media (to) turn everyone Grand Valley State University in Al- into an advocate on behalf of Ross. lendale employs eight website de- That’s proven through the invest- velopers and an in-house designer Differentiation ment in social media that you see Call 734-432-5354 to meet with an advisor. who are responsible for the web- For many schools, marketing to everywhere.” site, along with marketing profes- prospective students is the web- Similarly, at Walsh College in ."%0//"6/*7&34*5:t4$)00-0'#64*/&44 sionals and a copywriter. The site’s site’s top mission. Troy, the primary 36600 Schoolcraft Road (at Levan Road) institutional or departmental The University of goal for the web- -JWPOJB .*tNBEPOOBFEV pages are managed by this team, Michigan’s Ross When you really site is to “tell the but the content is provided directly School of Business “ Walsh story” to by department heads who have the uses its site in research it those who are con- ability to make changes them- a big way to sidering the engage cur- and look school, said Chief rent and Marketing Enroll- prospective at your ment Officer John students, said Lichtenberg. Steve Busch, analytics, Like the Ross creative direc- website, Walsh’s tor and en- most main site will be gagement lead updated in the overseeing de- objective coming months. toto puputt yyour company in the lead velopment and people go to your Approved depart- What’s youryoou next Tauber Team project? launch of a new ment heads and website for the website for content experts LearnLearn how our graduate-level engineering and business student teams Ross School in have the ability to Ann Arbor. information. directly update cancan helphe your business with high-impact, high ROI projects such as: Website visi- ” content using an • LeanLea process design and • Strategic sourcing plan tors, which aver- John Lichtenberg, Walsh College in-house system. implementationimp • New product/process age 1.7 million a “In this version, month, expect a call to action we will make a mobile version of • ManufacturingMa rationalization plan development strategy when they visit the site — and it is the website,” said Lichtenberg, • StrategicStra site assessment • Product complexity analysis the only way to guarantee a consis- who called it an overhaul. “I think • SupplySup chain implementation plan • Plant ﬂoor layout tent brand message 24 hours a day. most (colleges and universities) “It’s really the only place where spend a lot of time on what their we have the level of control and website looks like — but when you how to clearly differentiate Ross really research it and look at your from the other top business schools analytics, most objective people go in the country,” Busch said. “The to your website for information.” website is measurable in ways that Walsh page views have more other media can’t compete with.” than doubled in one year, increas- Ross, like other departments ing from 230,000 to 481,000. Submission Deadline and universities, tracks its web- The goal is to provide website Project proposals are site hits and analyzes traffic pat- visitors with an overview of the due December 1, 2011 terns on its website regularly. But school’s brand, Lichtenberg said. it has made some difficult deci- He does not want the Walsh home for projects starting in sions regarding website spending, page to “overwhelm” prospective the summer of 2012. because of financial challenges the students and parents. That will be school has faced. At times, that has his emphasis as Walsh evaluates More Information? made it difficult for Ross’ site to of- the recently completed architec- Contact Amy Bellas at fer some of the direct interaction ture evaluation of the website and with social media such as Face- begins developing a new template. [email protected] or book, Twitter and YouTube. “The cool stuff is what excites (734) 647-2220, or visit “We’re a state-run school that some people, but we’re focused on At Boeing’s Commercial Airplanes unit in Seattle, the Tauber project team year-over-year continues to re- having a strong mobile version of of Michael Krautmann, Amanda Roach, and Vincent Chu developed a global www.tauber.umich.edu ceive less state-funded dollars,” the website and making it easy for “fastener procurement implementation strategy” for sub-tier suppliers. Busch said. “In this economic en- (site visitors) to find what we know vironment, that added cost can’t be passed on to the students. So it See Next Page 20110606-NEWS--0037-RG1-CCI-CD_-- 6/2/2011 3:31 PM Page 1

June 6, 2011 CRAIN’S DETROIT BUSINESS Page M37 Focus: Business Education

From Previous Page tors will share their experiences of for Walsh College. Walsh also has a different demo- classes, campus locations and oth- The Ross School also wants to graphic of students that it often ap- CRAIN’S SEEKS NOMINEES they are looking for,” Lichtenberg er items. use social media to communicate peals to, Lichtenberg said. said. Such comments are already its attributes, Busch said. “They want to know can they FOR WOMEN TO WATCH When working on the assess- shared on the university’s Face- “We want to be in that realm of find a job and how can they afford Do you know a woman who is ment of the book page and engaging with people who have our tuition. Most of our students poised to make a difference in Walsh College Twitter feeds, similar interests (and) we want to are already working, so it is very her company or website, Lichten- The website is linking directly to engage with people in a genuine important for them to understand industry in the berg and his “ the Grand Valley manner,” Busch said. “There you what is going to be the value of the next year? Or one team looked at measurable in ways website. can see authentic, genuine and pos- degree,” Lichtenberg said, “so fi- who had an college websites The university itive or negative reviews from oth- nancial aid is important to them.” innovative idea or from around the also has an active er people who engage with Ross. Ross will use outside resources developed an that other media innovative practice? nation and made YouTube channel We really want to utilize that. in some areas, but much of the notes on what can’t compete with more than “In addition, we hope people can work, particularly content, can be If so, she could be a candidate they did and did- 300 videos that come to the Ross website because kept internal, said Busch, who pre- for Crain’s Detroit Business’ “Women to Watch,” which will n’t like. For ex- with. have received they saw a Facebook post or tweet viously worked for Microsoft Corp. be published Sept. 19. ample, Walsh ” tens of thousands talking about the Ross experience, in the Seattle area, helping to We’re looking for may look to add Steve Busch, University of Michigan of views. events and more,” Busch said. launch updated versions of its businesswomen of other virtual Ross School of Business “It’s part of an Colleges and universities can’t website. accomplishment at all career tools that existed effort to get more overlook the importance of web- Ross will also use HTML 5 with stages. Nominations should elsewhere, or may incorporate a dynamic content there so others site navigation either, Lichtenberg its new website, expected to be focus on a specific current tuition calculator. can share the experiences that peo- said. completed by August 2012. Expect- activity, rather than career ple who have been to our campus Walsh College plans to use a new ed features of HTML 5 include en- accomplishment over an or know the university had,” design which emphasizes hot links hanced video, audio and graphics extended period of time. Visit Interactive features Poortvliet said. that direct website visitors to the capabilities. www.crainsdetroit.com/nomin Grand Valley, which attracts GVSU also has used informal pages the college’s data shows they “The timing is right for us, giv- ate for the online nomination 5.7 million page visits a month, surveys of website visitors to sug- are more likely interested in view- en the technological capabilities,” form. The deadline is June 17. has begun featuring students and gest changes and enhancements. ing. Busch said. faculty members in “success sto- One example is that an older ries” that are updated regularly version of the website required a by the marketing department, visitor to scroll quite a bit to view Poortvliet said. However, as a the university’s events. Poortvli- School of Business and Economics way to promote more of these in- et’s team made some programming teractive features, the university changes so that a larger number of allows users to contribute content events are viewable at one time. directly to the website as well, In addition, it has become clear Tech MBA Online particularly by sending in photos through analytics and surveys Gain your competitive edge! using Flickr. that more visitors to the website The university’s programmers are accessing the Internet through are also working on a plan that their more advanced mobile would allow users to directly sub- phones like Android or iPhone, so mit text comments on many pages mobile access and applications of the website, with the hope that will be an area of future invest- students, parents, faculty and visi- ment and attention, much as it is

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Page M38 CRAIN’S DETROIT BUSINESS June 6, 2011 Focus: Business Education For-profit colleges getting larger share of students

BY CHUCK GREEN The trend toward private, for- lion students, or 11.8 percent of the SPECIAL TO CRAIN’S DETROIT BUSINESS profit universities is growing in nearly 27.4 million students who metro Detroit and Michigan, as studied at all institutions in 2008- I got One day, on his way home from well as nationally. 09. “ work a number of months ago, They’ve in- According to great John Verbovsky spotted a bill- creased their the National Center board promoting classes at South market share (Students are) for Education Sta- feedback University. At the time, Verbovsky, over time, accord- “ tistics’ Digest of a freelance animator, illustrator ing to data com- heavily Education Statis- for all the and logo designer with a bache- piled by the tics, in Michigan questions I lor’s degree in fine arts, had his American Feder- recruited the total enroll- sights on continuing his education ation of Teach- ment in private had and and perhaps eventually starting ers, AFL-CIO. The into for-profit degree- his own business. percentage of granting institu- concerns Talk about serendipity. all undergradu- programs tions in 2009 was After investigating the curricu- ates enrolled in 9,643, up from and lum at South, among other local in- the for-profit they might 3,101 in 2000. The stitutions, the soon-to-be 23-year- sector in- number of insti- thoughts old settled on South, a private, creased from not know tutions jumped for-profit school that opened a 2 percent in 1990 from four in 2000 on my campus last fall in Novi. to 5 percent in a lot about. to nine in 2009. “It just had a good feeling to it,” 2000 and 8 percent ” “Obviously, career he said. in 2007. Craig Smith, American Federation for-profit colleges Mostly, Verbovsky was lured by Data released of Teachers, AFL-CIO have grown expo- desire. South’s comparatively smaller this year show nentially over the ” size and 8-to-1 student-to-faculty that their market share has last decade,” said Craig Smith, John Verbovsky, ratio. “They pay personal atten- bumped up even more: For-profit deputy director of higher educa- South University tion to each student.” colleges enrolled a total of 3.2 mil- tion for the teachers union. student William Bradford, South Uni- versity president, said he believes one reason an increasing number of prospective students would be attracted to the school, which has BRENDAN ROSS a spring quarter enrollment of 88 lated, have uncapped, variable in- them at a “heavy rate, literally students, is that its programs re- terest rates that are very high for minutes” after they click on lead flect what employers in growing low-income borrowers, and are im- generators. industries, such as health care, are possible to discharge in bankruptcy. As a result, students are “heavily seeking. Additionally, private for-profit recruited into programs they might However, Smith said the federa- colleges account for roughly not know a lot about,” he said. tion is concerned about the amount 25 percent of all federal student While noting he can’t speak for of debt students incur in these pro- loans and account for 50 percent of the recruiting practices used grams and whether they are gain- all defaults — because they go af- throughout higher education or ing skills that lead to jobs that will ter low-income prospects that can the for-profit sector specifically, allow them to manage that debt. attain the highest amounts of stu- South University has no incentive Last summer, he said, the U.S. De- dent loans, observers say. to enroll a student in a program he partment of Education proposed new “These are students who suppos- or she doesn’t know a lot about, regulations to ensure students are edly have gone out into the work- Bradford said. getting what they are supposed to force but simply aren’t earning an “Our programs are the incen- when they borrow large amounts to income that is sufficient enough to tive for students because they’re pay for programs meant to lead to pay off their loans,” Smith said. looking to accomplish something “gainful employment.” South University provides fi- specific with their careers,” he As a small, new campus, South nancial aid services to all interest- said. South’s programs are geared polls its students to learn their ed students and comprehensively toward professional outcomes in thoughts, which help shape the de- evaluates the financial options of areas like criminal justice and velopment of the class schedule for each, said Bradford. health care, and the school oper- an upcoming quarter, Bradford Regulations dictate that schools ates ethically, providing access to said. inform students eligible for federal data, policies and issues that stu- For his part, Verbovsky is confi- aid what’s available to them, and dents looking at college should dent that his experience at South prohibit academic institutions know about, Bradford said. will help him achieve his profes- from limiting how much students Additionally, during orienta- sional objectives. borrow, he said. Consequently, tion, he tells students “don’t start “Not only am I getting a higher students might seek more than unless you intend to finish.” South education, but by learning the busi- their cost of tuition. University is not vested in simply ness aspects of the markets and Bradford said he believes anoth- enrolling students but in creating world I can use it to incorporate er primary factor behind South graduates, Bradford said. into my art and media and make a University’s appeal is that its cam- Faculty among for-profits also successful business,” he said. pus culture is geared to accommo- stirs federation concern, Smith The federation contends that a date students who typically aren’t said. “Almost all” for-profit insti- number of students who partici- first-time, full-time freshmen. He tutions rely solely on part-time pate in such programs are unable described some of those students teaching forces, he said, which of- to repay loans, which can irrepara- as “career changers,” or those who ten are unconnected to the institu- bly damage their financial histo- need colleges to be more flexible tions in any way. These institu- CODE RED ries, Smith said. and creative in developing pro- tions are “less concerned” about He pointed out that private stu- grams and schedules that fit into engaging faculty in curriculum de- dent loans are becoming increas- their lives. velopment, staying current in the Are you in danger of compliance violations? ingly popular as tuition outpaces Smith also expressed reserva- field and connecting with commu- the amount of federal aid students tions over the lead generation nity needs, he added. are able to borrow. process by which he said some for- Bradford said South does its ut- Forty-three percent of for-profit profits recruit “large numbers” of most to recruit and hire faculty college students took out private, students, a disproportionate num- who bring a combination of indus- non-federally subsidized loans in ber of whom are low-income and try experience and academic cre- 2007-08, up from 15 percent in 2003- minority students. dentials to the classroom. 04, he said. Instead of honing in on those Verbovsky has no complaints. Over the same period, the pro- mulling a career and considering a “(My counselor) was very atten- portion of students at for-profit col- handful of schools in their area, he tive to my needs, and I got great Business Systems Solutions leges borrowing at least $40,000 said for-profits use lead generation feedback for all the questions I had Management Systems Consulting | Training | System Improvements nearly tripled to 30 percent, ac- primarily to reach potential stu- and concerns and thoughts on my BUSINESSSYSTEMSOLUTIONS.ORG | 313.505.5524 cording to federation data. dents who merely click on leads career desire and whether the biz Those loans are largely unregu- through Internet ads, contacting school was a good fit for me.” 20110606-NEWS--0039-RG1-CCI-CD_-- 6/2/2011 1:51 PM Page 1

June 6, 2011 CRAIN’S DETROIT BUSINESS Page M39 Focus: Business Education NEW PROGRAMS This directory was compiled Cornerstone University Science in nursing and a Bachelor fered at the Westland-Wayne loca- mathematics and science. from dozens of interviews with of Science in health information tion, with certificates for becom- The school also will introduce an academic, admissions and market- The Grand Rapids-based school management, all beginning in the ing trained as a service technician interdisciplinary minor in film ing executives within these plans to offer one new online pro- fall semester at its Livonia campus. or system technician. studies and a minor in Jewish stud- schools. This list is meant to show- gram in the fall. A Master of Science A Bachelor of Science in nurs- Dorsey also recently purchased ies this fall. An interdisciplinary case programs that are of interest in global trade will focus on the ef- ing completion program will be Taylortown School of Cosmetology graduate certificate in cultural mu- to a Southeast Michigan business fects of globalization and equip stu- available in the fall at its Warren in Taylor and will continue to run seum studies, an undergraduate readership. If you know of a pro- dents to move their companies into campus. the school under the original name. and graduate health care informat- gram we should add for the online world markets. The program is in Dorsey Schools ics program, a graduate certificate version of this directory, please partnership with the World Trade Eastern Michigan University in post-secondary preparation and contact Jennette Smith at Center Illinois. The private professional educa- a graduate certificate in academic [email protected]. tion school with campuses around The Ypsilanti-based university advising also will be offered. metro Detroit will offer a new will offer several new degrees this Baker College Davenport University practical nursing certificate at its fall, including a Bachelor of Sci- Henry Ford Community College Madison Heights campus. ence in interdisciplinary environ- The private, for-profit university The Dearborn-based college be- At its Allen Park campus, Baker will offer a completion program in A heating, ventilation, air condi- mental science and society and a will offer several new programs, Registered Nursing, Bachelor of tioning program also is being of- Master of Arts in teaching in See Page M42 including a Bachelor of Science in construction management; associate degrees in criminal justice and nursing; and a 911 telecommunications certificate. It will offer an associate degree in cybersecurity and a Cisco networking (with wireless and VoIP certificate) at its Clinton Town- ship campus in the fall. A Master of Science in industrial and organizational psychology will be offered online. Central Michigan University The Mt. Pleasant-based university will offer two new undergraduate and two new graduate pro- Value(s) added. grams in the fall at several of its metro Detroit satellite campuses — Auburn Hills, Clinton Town- ship, Dearborn, Detroit, Livonia, Southfield, Troy and Warren — although the specific campuses have yet to be determined. The new programs include a Master of Arts in sports administration, a Bachelor of Science in integrated leadership studies and an accelerated bachelor’s and master’s dual-enrollment program that allows students to earn a Bachelor of Science in integrated leadership studies leading to a Master of Science in leadership. The public university also will offer several new programs online, including an MBA in logistics management, graduate certificates in logistics management and international health, a Bachelor of Sci- ence in psychology and a Bachelor of Science in integrated leadership studies.

Cleary University When you have a master’s degree in business from UDM, you’ve gained the The private university with cam- kind of strategic thinking that can make an impact in today’s business world. puses in Ann Arbor and Howell will offer four new degree concen- It also means you bring a socially responsible perspective to every decision. That’s trations through its Bachelor of because UDM’s College of Business Administration infuses its curriculum with both Business Administration degree excellence and ethics, drawing on its Jesuit and Mercy traditions. So UDM graduates program in the fall. The concentrations will be in marketing, business deliver an uncommon value-added to the workplace. And UDM’s AACSB accreditation development and sales, corporate means you are attending an elite business school—among the top 5 percent world- communication and public relations, and new media and manage- wide—where teaching matters as much as research, and accountability reigns. ment of information systems. All are offered on campus or online. GRADUATE BUSINESS DEGREES AT UDM

MBA MASTER OF BUSINESS ADMINISTRATION ETHICAL LEADERSHIP & CHANGE MANAGEMENT Concordia University GRADUATE CERTIFICATE BTM BUSINESS TURNAROUND MANAGEMENT The Ann Arbor-based private FINANCE GRADUATE CERTIFICATE university will offer two new pro- JOINT MBA/MHSA grams for the 2011-2012 academic JOINT JD/MBA Call or email: year. A program in liberal arts, GLOBAL ENTREPRENEURSHIP MBA JOINT 800-635-5020 or 313-993-1245; business and entrepreneurship is PROGRAM WITH FU JEN CATHOLIC UNIVERSITY [email protected]. designed to enhance a student’s liberal arts major with business and communication knowledge, skills and experience. We want great things for you. business.udmercy.edu A Bachelor of Science in communication also will be offered in the fall. 20110606-NEWS--0040-RG1-CCI-CD_-- 6/1/2011 2:13 PM Page 1

Page M40 CRAIN’S DETROIT BUSINESS June 6, 2011

CRAIN'S LIST: DETROIT-AREA GRADUATE BUSINESS DEGREE PROGRAMS Listed alphabetically

Cost per credit hour Campus Types of Minimum Minimum as of June Degrees offered locations programs GPA GMAT/GRE 2011 Baker College Center for Graduate Studies MBA; MOT; M.S. degrees in business management, information systems, Allen Park, Auburn Hills, Cadillac, Full time, part time and 2.5 NR $405 1116 W. Bristol Road, Flint 48507 occupational therapy, psychology, Doctor of Business Administration Clinton Township, Flint, Jackson, online (800) 469-3165; www.baker.edu/graduate Muskegon, Owosso, Port Huron Central Michigan University MBA, MPA, M.S.; administration, Doctor of Health Administration, Master of Ann Arbor, Auburn Hills, East Full time, part time, 2.7 B 450 B $655 C 755 W. Big Beaver Road, Suite 222, Troy 48084 Public Administration Lansing, Flint, Livonia, Dearborn, evenings, weekends and (877) 268-4636; www.cmudetroit.com Saginaw, Southfield, Troy, Clinton online Township, Warren Cleary University MBAs in accounting, financial planning, green business strategy, management, Ann Arbor, Howell Days, evenings, weekends 2.5 NR $525 3750 Cleary Drive, Howell 48843 nonprofit management, organizational leadership and public accounting and online (includes (517) 548-3670; www.cleary.edu textbooks and fees) Concordia University M.S. in organizational leadership and administration Ann Arbor Full time, part time and 3.0 NR $437 4090 Geddes Road, Ann Arbor 48105 evenings (734) 995-7300; www.cuaa.edu Davenport University MBA, MSIA; business administration and science and information assurance Livonia, Warren Full time, part time, 3.0 NR D $520 27650 Dequindre Road, Warren 48092 evenings, weekends and (800) 383-5200; www.davenport.edu online DeVry University MBA; concentrations include accounting, e-commerce, management, finance, Southfield Full time, part time, online NA NA $2,225 on- 26999 Central Park Blvd., Suite 125, Southfield 48076 health services, hospitality management, information systems, international site three- (248) 213-1617; www.devry.edu business, marketing, public administration, MBA+CFA, MBA+CPA, others semester- credit-hour course Eastern Michigan University MBA; M.S. degrees in accounting, accounting information systems, human Ypsilanti Full time, part time, 2.75-3.0 450 $416.75 404 Gary Owen Building, Ypsilanti 48197 resource and organizational development, integrated marketing evenings, Saturdays and 500 E (734) 487-4444; www.emich.edu communications, information systems online Lawrence Technological University MBA; career-integrated MBA; MBA International; M.S. degrees in automotive Southfield, Macomb University Full time, part time, 2.7- 3.0 NR $870 21000 W. 10 Mile Road, Southfield 48075 engineering, construction engineering management, manufacturing systems, Center weekends (248) 204-3160; www.ltu.edu information systems, others; doctoral degrees in business administration, engineering in manufacturing systems, and management of information technology; International Doctor of Business Administration Madonna University MBA with certificates in cost management, e-commerce, general business, HR Livonia, Orchard Lake Part time, evenings, 3.0 NR $550 36600 Schoolcraft Road, Livonia 48150 management, IT management, others; MSBA degrees in international business, weekends and online (734) 432-5667; www.madonna.edu leadership studies, others; M.S. degrees in e-commerce, health services administration, and project management; M.S.N.-MSBA dual Marygrove College M.A. (36 credit hours) and graduate certificate (18 credit hours) Detroit Online 3.0 NR $640 8425 W. McNichols, Detroit 48221 (313) 927-1513; www.marygrove.edu Michigan State University Eli Broad MBA; executive MBA; M.S. degrees in accounting, finance, hospitality East Lansing, Troy Full time, part time, 3.3 F 500 $23,735 G Graduate School of Management business, supply-chain management, others; Ph.D. in accounting, finance, evenings, weekends and 550 E East Lansing 48824 information-technology management, marketing and supply-chain online (517) 355-7603; www.bus.msu.edu management, organizational behavior, others; Ph.D in operations and sourcing management Northwood University Richard DeVos MBA Lansing, Midland, Troy, Grand Full time, part time, 3.0 450 $30,726 H Graduate School of Management Rapids evenings, study aboard 4000 Whiting Drive, Midland 48640 (800) 622-9000; www.northwood.edu/mba Oakland University MBA; executive MBA in health care management, and information-systems Rochester Hills, Birmingham, Part time or full time, 3.0 500 - $540.50 School of Business Administration leadership; MBA-J.D. dual (with Cooley Law); M.S. in information technology Clinton Township, and Mount evenings, some Saturday GMAT 238 Elliott Hall, Rochester 48309 management; and master of accounting. Post master’s certificates in general Clemens morning and some online (248) 370-3287; www.sba.oakland.edu/grad management, accounting, business economics, entrepreneurship, finance, courses others Siena Heights University M.A. in leadership degrees in health care, not-for-profit, organizational, public Southfield Evenings 3.0 NR $475 19675 W. 10 Mile Road, Suite 400, Southfield 48075 service, homeland security, nuclear power administration, and emergency (248) 799-5490; www.sienaheights.edu management Spring Arbor University MBA, M.A. in organizational management Dearborn, Spring Arbor Full time, online 3.0 NR $540 106 E. Main, Spring Arbor 49283 (313) 461-6287; www.arbor.edu University of Detroit Mercy MBA; executive MBA; MBA-J.D. dual; global entrepreneurial MBA; M.S. Detroit Part time, evenings and 3.0 NR I $1,250 4001 W. McNichols, Detroit 48219 degrees in computer information systems, information assurance, product weekends (313) 993-1000; www.udmercy.edu development, security administration, and business turnaround management; Master of Engineering Management; Master of Health Service Administration University of Michigan-Dearborn MBA; M.S. degrees in accounting, finance, and information systems; MBA- Dearborn Full time, part time, evenings 3.0 500 $518.70 School of Management Master of Health Services Administration dual with UM School of Public and online 19000 Hubbard Drive, Dearborn 48126 Health; MBA-M.S. in engineering-industrial and systems engineering dual; (313) 593-5460; www.cob.umd.umich.edu MBA-M.S. in finance dual; MBA-M.S. in information systems dual. All degree programs except for the M.S. in accounting and MHSA are available with evening, on-campus or online courses University of Michigan Ross Full-time MBA; weekend MBA; evening MBA; executive MBA; global MBA; Ann Arbor, Southfield Full time, part time and NA J NA K NA L School of Business Master of Accounting; Master of Supply Chain Management; MBA-Master of executive, specialty masters 701 Tappan St., Ann Arbor 48109 Public Policy; Doctoral study program (734) 763-5796; www.bus.umich.edu University of Michigan-Flint MBAs in accounting, computer information systems, finance, health care Flint Full time and online 3.0 450 $800 School of Management management, international business, lean manufacturing, marketing, 303 E. Kearsley Drive, Flint 48502 organizational leadership (866) 863-6221; mba.umflint.edu University of Phoenix MBAs in accounting, global management, health care management, HR Troy, Livonia, Southfield, Evenings and online 2.5 NR $685 5480 Corporate Drive, Suite 240, Troy 48048 management, marketing, public administration, others; Master of Ann Arbor, Warren, Flint (248) 925-4100; www.phoenix.edu Management, international, human resources management and public administration; M.S. in accountancy; doctoral programs University of Windsor Odette School of Business MBA; MBA-LLB dual; Master of Management in international accounting and Windsor Full time, evenings and 3.0 550 $31,300 M 401 Sunset Ave., Windsor, Ontario, Canada N9B 3P4 finance, manufacturing management weekends (519) 253-3000, Ext. 3097; www.uwindsor.ca/business Walsh College MBA degree; Master of Management degree; M.S. degrees in accounting, Clinton Township, Harper Woods, Full time, part time, 2.75 NR N Master's: 3838 Livernois Road, Troy 48083 finance, information systems, information assurance, taxation; dual MBA/M.S. Novi, Port Huron, Troy evenings, weekends and $550; (248) 823-1610; www.walshcollege.edu in finance; Doctor of Management in executive leadership online Doctoral: $930 Wayne State University School of Business MBA; MBA-J.D. dual; M.S. degrees in accounting, taxation; M.A. in Detroit, Farmington Hills, Clinton Full time, part time, 2.5 450 $555.80 Administration economics, industrial relations, and industrial and organizational psychology; Township evenings, weekends and 5201 Cass Ave., Detroit 48202 Master of Public Administration; Ph.D. in business administration, economics online (313) 577-4510; www.business.wayne.edu

This is a list of graduate business degree programs offered by schools with campuses in Wayne, Oakland, Macomb and Livingston counties. It is not a complete listing but the most comprehensive available. Information for the list was provided by the schools through surveys or from their websites. NA = not available. NR = not required. B Students must have at least 1,050 points based on the formula: 200 times the undergraduate GPA plus a minimum GMAT score of 450. C For MBA classes, others vary (per website). D Test scores are required to be submitted, but there is no minimum score requirement. E For M.S. in accounting. F For the last two years of undergraduate program. G Full-time MBA, in-state resident; not per credit hour. H Cost per program for fall 2011; not per credit hour I GMAT minimum is a sliding scale and depends mostly on the student's undergraduate GPA. J Case by case; no minimum. K No minimum. L Varies depending on programs. M Total cost for MBA international student; $15,000 for MBA Canadian. N GMAT score of 500 required for the Doctor of Management in executive leadership. LIST RESEARCHED BY ANNE MARKS DBpageAD.qxp 5/25/2011 10:22 AM Page 1

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Page M42 CRAIN’S DETROIT BUSINESS June 6, 2011 Focus: Business Education NEW PROGRAMS From Page M39 at its south campus in Warren and programs in the fall. Schoolcraft College fer a post-degree early childhood gan offering a 21st century techni- central campus in Clinton Town- A certificate in nanotechnology education certificate program on cal communications certificate ship. The program will emphasize in material science is designed to The Livonia-based college will campus and online, an education program in August 2010. The 31- management techniques and busi- provide a foundation in nanotech- offer a new computing technology specialization program, and cer- credit program will train students ness concepts including project nology to those not interested in industry association certification, tificate programs in central office for future careers in information staffing, planning and control, time pursuing an associate’s degree. A which will be added to the biomed- administration and in pre-K-12 and communication technology. management, quality management, certificate of achievement in nan- ical engineering technologist pro- school district administration. Students may choose from three project accounting and advanced otechnology in material science is gram in the fall. The university also will offer a concentrations: business, techni- project management tools. intended for students who have Master of Arts in educational lead- cal or infrastructure. earned a previous degree or have University of Detroit Mercy ership this fall. An associate in energy technolo- Madonna University significant work experience in gy in plumbing and pipefitting was nanotechnology. The Detroit-based university The School of Business at the will offer several new programs University of Phoenix offered beginning in December. Livonia-based private university A homeland security certificate this fall, including the first bache- The University of Phoenix at the will offer one new bachelor’s and of achievement will train students lor of architectural engineering Southfield campus will offer a new one master’s program in the fall. who wish to enhance their career Lawrence Technological University degree program in Michigan. associate’s degree program in in- A Bachelor of Science in health options by upgrading their current The university is launching two The school also will offer a joint formation technology this fall. The are management is designed to train skills in homeland security. new graduate certificate programs MBA and Master of Health Ser- program will be geared toward students in the business skills need- OCC has seven locations: Royal and three new bachelor’s and grad- vices Administration program and those wanting to enter the IT field ed by health care professionals. Oak, Southfield, Farmington uate programs in the fall. a five-year MBA and Bachelor of and will be largely taught through A Master of Science in health Hills, Waterford Township, The Southfield-based campus Business Administration program. services administration is de- Auburn Hills, Pontiac and hands-on training. will offer a fast-track graduate cer- A certificate program in ethical signed for students in midlevel ad- Rochester Hills. tificate in interdisciplinary sus- ministrative positions who are in- leadership and change manage- University of Windsor tainability as well as health IT terested in working in business ment, a museum studies minor The public university will offer management. management positions in health Oakland University and a sports communication mi- A Bachelor of Arts in architectur- nor also will be available. three new honors bachelor’s de- care organizations. The public university plans to al studies, a Bachelor of Science in grees this fall. offer three new bachelor’s and two robotics engineering and a Bachelor A Bachelor of Arts in liberal and master’s programs in the fall. of Science in biomedical engineer- Marygrove College University of Michigan-Dearborn professional studies will link The Rochester Hills-based cam- ing technology also will be offered. The Detroit-based college will of- UM-Dearborn College of Busi- courses in business, arts, social pus will offer a Bachelor of Science A Ph.D. in business administra- fer a Master in Education in special ness recently began offering two sciences, science and engineering. in actuarial science — a degree de- tion, a Ph.D. in information tech- education with an emphasis in new bachelor’s programs and two A Bachelor of Arts in political signed to train students to assess nology and a Ph.D. in engineering learning disabilities and a Master new master’s programs. A Bache- science with a specialization in risk in the insurance and finance with a concentration in mechanical of Arts in literacy learning this fall. lor of Business Administration in law and politics or a bilingual spe- industries. engineering will be added this fall. digital marketing and in supply cialization will also be offered. A Bachelor of Arts in liberal stud- The Ph.D. programs are in addi- Northwood University chain management both will be of- ies and a Bachelor of Arts in cre- tion to doctorate degrees already of- The Midland-based private uni- fered on campus. A Master of Sci- fered by the university in business ative writing also will be offered. ence in finance will be offered on Washtenaw Community College versity, with satellite campuses A Master of Science in mecha- administration, management in in- across Michigan, Texas and Flori- campus and online and a Master of The Ann Arbor-based school will formation technology and engi- tronics will focus on mechanical, Science in information systems offer several new programs this fall da, is offering an online bachelor’s electronic, computer and control neering in manufacturing systems. degree in management. will be online only. including an associate degree in ear- engineering. OU is only one of two The public university also will ly childhood education and an asso- Macomb Community College Oakland Community College Michigan universities to offer a offer certificates in electric energy ciate degree in retail management. mechatronics program. technology, embedded system-on- A Web database programmer ad- The school is offering a new pro- The Bloomfield Hills-based col- A Master of Arts in communica- chip design, intelligent systems in vanced certificate, retail and busi- ject management program this fall lege will offer three new certificate tion also will be offered this fall. engineering applications and in ness operations certificate and a 3- multimedia engineering. All will D animation certificate will also be be offered on campus and online. offered. The School of Education will of- Compiled by Ellen Mitchell. Weekend investment. Lifelong returns. Schools expand biomed programs

BY ELLEN MITCHELL members of The Legends serve as SPECIAL TO CRAIN’S DETROIT BUSINESS mentors and potential employers of students. As U.S. medical jobs and opportu- Oakland University’s new master’s nities grow, Michigan universities degree program in mechatronics have introduced increasingly spe- also has applications in biomedical cialized biomedical engineering ed- systems. ucation programs. Developed out of the need for a Among the fastest-growing pro- multi-disciplinary engineering grams at Lawrence Technological Uni- specialty, mechatronics is a hy- versity is biomedical engineering, brid field of mechanical, electron- said Elin Jensen, associate dean of ic, computer and control engineer- graduate studies and research and ing. acting program director. “A lot of courses in the mecha- Since its introduction in fall 2005, tronics program give students the the biomedical engineering pro- skill set to apply it to biomedical gram has grown from five students engineering,” said Daniel Aloi, as- It’s closer than you think the first year to about 60 for the sociate professor and interim 2011-2012 academic year. This fall, chairman of the OU Electrical and Just 19 months to an Executive-style LTU, which has about 4,400 stu- Computer Engineering Depart- Weekend MBA in East Lansing or Troy dents, will launch a Bachelor of Sci- ment. “You’re forced to work with ence degree in biomedical engineer- engineers in different disciplines, No other MBA offers a comprehensive, team-based Learn more about our Troy ing technology. which in the medical field could be program that truly ﬁts your life. or East Lansing options at Also impressive, said Jensen, are working on prosthetics, biogener- students’ entrepreneurial opportu- broad.msu.edu/mba/weekend ated nerve endings, or even an au- Michigan State University’s Weekend MBA is an nities. To request funds for larger tomatic insulin injection.” or call 800-746-6781 investment in yourself that offers great returns. projects, students in the biomedical Within the next month, OU also You’ll join a powerful network of high-caliber engineering program are given the will be on the electrical engineer- opportunity to devise business ing side of a $7 million proposed professionals in a program that’s intensely plans and present marketing pitch- project with the University of Michi- challenging and rewarding. es to a group known as “The Leg- gan on the control of prosthetic Become the high-performing leader you Broad College ends,” Lawrence Tech alumni who limbs, pending funding, Aloi said. own and operate their own busi- were meant to be. Weekend MBA “Our first medical class will nesses. The organization is ground- start soon; so as the medical school ed in the Lear Entrepreneurial Center matures, there will be a close part- in the College of Engineering, and nership,” Aloi said. DBpageAD.qxp 5/23/2011 11:57 AM Page 1

As the area’s only all-business college, we attract serious, business-minded students. Then, we prepare them for the next level with challenging degrees taught by successful business leaders. Put a strong business mind to work. Hire a Walsh graduate today. DBpageAD.qxp 5/23/2011 3:53 PM Page 1

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Page 12 CRAIN’S DETROIT BUSINESS June 6, 2011 IT ‘inshoring’ creates hundreds of jobs ahead of schedule

BY SHERRI WELCH years — far ahead of its initial there’s momentum to bring jobs rent skills and competitive rates, most exciting about this (center) CRAIN’S DETROIT BUSINESS projection to hire that many in back into Michigan and, specifi- and by the option to have all of for me; it’s created jobs for people four years, as it brought jobs back cally, to Detroit, she said. their talent in an urban area with at all levels, from experienced pro- Strategic Staffing Solutions Inc. to the U.S. and kept others here. “The message I want to send as appropriate backup that’s easily ject managers to entry-level cus- plans to hire another 100 contract “Demand is outpacing projec- a CEO is that when you make an accessible to clients. tomer care (employees). IT employees for its Detroit De- tions,” said Cynthia Pasky, presi- announcement, you should be able S3’s Downtown Development Strategic Staffing Solutions velopment Center within six dent and CEO of Detroit-based to report back in a year and say Center serves as the hub for S3’s posted $205 million in revenue for months. Strategic Staffing. here’s what we outsourced IT 2010, marking its 20th consecutive That will bring it to more than S3 has proven that the concept did … and come services, in- year of revenue growth and a 21 400 employees in less than two of “inshoring” can work, and that see it so you It’s created jobs cluding Web percent increase from year-earlier know it’s real.” “ and application revenue. As report- for people at development, The Detroit Development Cen- ed by Crain’s maintenance ter accounted for $10.5 million in late last all levels, services and its 2010 and is on track to hit $26 mil- Professional Jet Management year, the managed ser- lion this year, S3 said. rapid growth from vices software. Like S3, New Jersey-based prompted S3 The company health care systems developer to more than experienced also offers a call GalaxE.Solutions is outpacing its double its project center offering job creation projections in De- space in the help desk and troit with a strategy of keeping Penobscot managers to customer con- jobs in the U.S. rather than off- Building to tact, testing, shoring them. GalaxE.Solutions 45,000 square software devel- manages outsourced projects for feet. entry-level customer opment and corporate clients and has direct Currently, desktop sup- care (employees). employees. about 310 em- port. ” “Our commitment was 500 hires Experience the difference. ployees sit in that Through its Cynthia Pasky, over five years … 120 at the end of space, providing website at Strategic Staffing Solutions year one is ahead of schedule,” All inclusive management at an affordable ﬁ xed cost. services for five www.strategic- said Chairman and CEO Tim clients: Blue Cross Blue Shield of staff.com, S3 is taking inquiries Bryan. •Forming partnerships now Michigan, Blue Cross Blue Shield of and résumés from business ana- Louisiana, DTE Energy Co., Wayne lysts, project managers and entry- Again, like S3, GalaxE.Solu- •Small, midsize and large cabin jets County and a large, unnamed level customer care people with IT tions expanded from 25,000 •Reduce your total operating cost health system. know-how to fill the job openings, square feet in the Campus Mar- tius Building in Detroit to 40,000 •Maximize your aircraft efﬁ ciency Strategic Staffing expects to add Pasky said. four new out-of-state clients from Those employees will help ac- feet in October, just less than six while enhancing your aircraft months after setting up its office appearance, performance & value www.skywayavjets.comwww skywayavjets com the finance, insurance and biotech commodate four new clients from industries within six months, the finance, insurance and biotech in the city. Pasky said. industries that Pasky expects to The demand for helping health Call today for more information, Geoff Sherman 1.248.568.0979 Customers are drawn by the re- sign on within six months. care companies transform their gion’s talent, which has both cur- “That’s one of the things that’s IT platforms to accommodate electronic medical records and other legislated health care reforms is very high right now, he said. The company’s Detroit center “is keeping jobs in the U.S. instead of having them go off off- In Your Corner. shore.” Swing to Cure Diabetes He declined to name clients served from GalaxE’s Detroit office but said they include some of Thank you, the largest health care companies in the country. golfers and sponsors, for “Outsource to Detroit,” the com- helping to raise $45,000 pany’s tag line for its Detroit cen- for the Juvenile Diabetes ter, “is a great channel for us to deliver value to our customers,” he Research Foundation said, “offering the proximity of be- and The University of ing inside the U.S., no currency is- Michigan Comprehensive sues and no foreign governments.” Diabetes Center. That increases collaboration and productivity for clients, Special thanks to Bryan said, also declining to give his company’s revenue. I Brady Hoke Detroit has many talented people who are unemployed or under- I Gary Moeller employed, inexpensive real estate, alignment with state, county and I Cathy Schembechler city governments to encourage business and a city that’s very de- I Jerry Hanlon sirable to live in for IT professionals, he said. I Jim Brandstatter “There are a lot of places you can do IT, but IT professionals like I Van Conway an urban environment, and De- troit is the best value in America I Don Slominski right now in terms of cost of living Pictured from left: Terry Miglio, Keller Thoma; Coach Gary Moeller; Albert Little, Greenleaf Trust; Varnum Managing Partner Larry Murphy; Shawn Potts, Walgreens; and Varnum attorney Rich Hewlett. and quality of life. “That’s why I made this ($5 million) investment,” Bryan said. Are S3 and GalaxE creating an inshoring hub, of sorts, in Detroit? “I hope so,” Pasky said. “The talent is there.” www.varnumlaw.com Sherri Welch: (313) 446-1694, [email protected]. Twitter: @sher- I I I I I Novi Grand Rapids Kalamazoo Grand Haven Lansing riwelch 20110606-NEWS--0013-NAT-CCI-CD_-- 6/3/2011 12:22 PM Page 1

June 6, 2011 CRAIN’S DETROIT BUSINESS Page 13 Risks cloud extent of Gilbert’s good deal for First National our industrial supply experts BY DANIEL DUGGAN can help you improve your bottom line CRAIN’S DETROIT BUSINESS

There has been no shortage of buzz among people in Detroit’s commercial real estate circles sur- technical experts rounding Dan Gilbert’s potential With over 300 years of local metalworking deal to buy the First National Build- experience, our team provides application ing — and the financials behind it. support, recommendations and troubleshooting Among the most interesting de- to help you improve your productivity. tails is Gilbert’s comment that he already has tenants lined up to fill the vacant half of the 800,000-square-foot building, though Gilbert declined to comment on the 500,000+ products companies’ iden- delivered next day* tities. Reduce downtime with the broadest offering The sale price of metalworking and maintenance products is another hot available for next day delivery. topic. He is buying the building for $8.1 million, cost-saving according to the DUSTIN WALSH/CDB purchase agree- The half-vacant First National Building solutions ment filed in U.S. has 800,000 square feet. MSC’s solutions can help you Gilbert Bankruptcy Court increase efficiency by streamlining in Detroit. Closing is set for July. But the real hidden cost are the business processes and reducing In doing some “back-of-the-nap- elevators, exterior and other parts cost of operations. kin math,” brokers say the sale of the building that might need work, said Levi Smith, associate price is impressive, though tem- Contact your Detroit team: pered by the risks involved in De- broker with Southfield-based Prin- troit real estate ownership. cipal Associates. 734•953•8864 At $8.1 million for 800,000 square “That’s the wild card in a Detroit Our Branch and Will-Call Showroom feet, the price breaks down to building purchase, you don’t know are located in Livonia, MI. roughly $10 per square foot — less how much money will need to be in- than one year’s rent in Detroit. vested to fix it up,” said Smith. mscdirect.com The building has a significant Gilbert can take gambles in De- lineup of tenants, close to 50, ac- troit, observers say, because he also *For a complete listing of our terms and conditions, visit mscdirect.com. cording to Washington, D.C.-based has 3,700 people that he can move CoStar Group. Among them is the into the buildings if he wants to, not anchor tenant, Detroit-based to mention an ownership stake in Honigman Miller Schwartz and Cohn many local companies. LLP, taking 180,000 square feet, and For Quicken, employees occupy the second-largest tenant is United an average of 150 square feet per Way for Southeastern Michigan at person; so that’s 600,000 square 65,000 square feet. feet that he can occupy if needed. CoStar lists the average rental So in a worst-case scenario, he can rate of $15 per square foot for the move employees out of the Com- building, with roughly $6.3 million puware Building, one broker said. in income, assuming all of the ten- Similarly, Gilbert’s plan has ants pay that rate — Honigman re- been to occupy the Chase Tower, portedly pays much less. which he bought earlier this year, If he wants to make a 10 percent with Quicken employees. return on his investment, Gilbert His other recent acquisition, the needs $800,000 in annual revenue, Madison Theatre Building, is well one broker pointed out. But he also on its way to being filled with the has to look at the operational costs recent news that Royal Oak-based of roughly $8 per square foot annu- advertising firm Skidmore Studio is ally, or $6.4 million. leasing 10,000 square feet.

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Page 14 CRAIN’S DETROIT BUSINESS June 6, 2011

BUSINESS DIARY CONTRACTS Vision Computer Solutions, Northville, an IT services provider, The Gale Group Inc., Farmington Hills, opened a new office at 306 S. Main St., part of Cengage Learning Inc., Stam- Suite LLA, Ann Arbor. Website: ford, Conn., and TheGreenInterview. www.vcsolutions.com com, Halifax, Nova Scotia, Canada, a subscription website offering infor- Custom Data Solutions Inc., Sterling mation on environmental subjects, Heights, formed a subsidiary, Soft- announced an agreement to enhance ware Solution Integrators LLC, to ex- the content of Greenr, Gale’s electron- pand its software integration services. ic resource offering information on Website: www.custdata.com. sustainable development, the environ- Inteva Products LLC, Troy, opened an ment, energy and natural resources. automotive interiors technical center TheGreenInterview.com will provide in Vandalia, Ohio. Website: www. Gale with video interviews and blogs. intevaproducts.com. ZipLogix, Fraser, a provider of electron- The Faurecia Group, Auburn Hills, has ic forms software for the real estate in- added a Madison, Miss.-based plant to dustry, entered into an agreement to support the production of seats for provide zipLogix Digital Ink to mem- Nissan. Website: www.faurecia.com. bers of the Houston Association of Real- Trent Design LLC, Rochester, a market- tors, Houston, Multiple Listing Service. ing, interactive media and design firm, Gregory J. Schwartz & Co. Inc., Bloom- opened an office at 71 Garfield, Detroit. DESTINATION: field Hills, an investment advisory Website: www.trentdesign.net. firm, has been retained by Butzel Long Visteon Corp., Van Buren Township, PC, Detroit, as investment counselor is expanding automotive component to its 401(k) defined contribution re- testing capabilities at its engineering tirement plan. test center in Guarulhos, Brazil. Web- Broader The Jalen Rose Leadership Academy, site: www.visteon.com. Detroit, a public tuition-free charter high school, has selected Tanner Fried- MOVES man Strategic Communications, Farm- Horizons ington Hills, to handle media relations Unconventional Solutions Inc., a and other communication services. provider of repair and protection for equipment, machinery, buildings and Borders Group Inc., Ann Arbor, ex- structures, moved its headquarters panded its U.S. partnership with Kobo from 527 Union St. to 127 E. Commerce ® Inc., Toronto, Canada, giving Borders Road, Suite 201, Milford. Telephone: Get there with Mango Passport. customers access to new free e-read- (248) 685-7580. Website: www.uncon Fast, easy and incredibly effective language ing apps and technology. ventionalsolutions.biz. Azure Dynamics Corp., Oak Park, an- learning tools, designed with travelers in mind! nounced 27 sales of Ford Transit Con- NEW PRODUCTS nect Electric vans, including to FedEx Express, Memphis, Tenn.; the City of TRW Automotive Holdings Corp., Livo- Enter code CRAINS10 to get 10% OFF Toronto, Canada; DTE Energy Co., De- nia, unveiled its roof airbag system, troit; Westar Energy, Topeka, Kan.; replacing passenger airbags mounted your purchase at MangoLanguages.com Green Mountain Power, Colchester, in the instrument panel. Website: Vt.; Johnson Controls, Milwaukee, www.trw.com. Wis.; ThyssenKrupp Elevators, Al- Federal-Mogul Corp., Southfield, ex- pharetta, Ga.; University of Toronto, panded its steering and suspension Canada; Folsom Lake Ford, Folsom, product line to include nearly 60 addi- Calif.; Gary Yeomans Ford Lincoln tional high-volume replacement com- Mazda, Daytona Beach, Fla.; Mission ponents for late-model European, Valley Ford, San Jose, Calif.; Midway Asian and domestic applications. Ford Truck Center, Kansas City, Mo.; Website: www.federalmogul.com. Pearson Ford, Zionsville, Ind.; Sander- Nexcess.net LLC, Ann Arbor, an e- son Ford, Glendale, Ariz.; Suburban commerce Web hosting company, ex- Ford, Sterling Heights; Trans-West panded its Magento Web hosting prod- Truck Center, Fontana, Calif.; and Van uct line at the company’s United Bortel Ford Inc., East Rochester, N.Y. Kingdom facilities. MIST Innovations Inc., Detroit, a developer of network security monitoring NEW SERVICES devices, signed an agreement with Protektar SA de CV to be the exclusive R.L. Polk & Co., Southfield, an automo- distributor of MIST’s flagship prod- tive information and marketing soft- uct, MISTonDemand II, in Mexico. ware company, launched a Web-based loyalty analytics tool, providing auto- United Methodist Retirement Commu- motive OEMs, agencies, and automo- nities Heritage Foundation, Chelsea, tive-focused media immediate access to has become a community partner of Polk’s suite of U.S. automotive loyalty the Southeast Michigan program of information. Website: www.polk.com. Leave A Legacy through the Planned Giving Roundtable of Southeast Michi- Health Plan of Michigan, Detroit, an- gan, Metamora. nounced its new patient centered medical home incentive program. It en- GraphiColor Systems Inc., Livonia, has courages providers to become PCMHs been chosen by ExpoSystems USA, by providing financial assistance dur- Cumming, Ga., a manufacturer of trade ing the practice certification phase show display parts, to be the exclusive and rewards providers who have al- dealer for the state of Michigan. ready received PCMH designation. Qualitech, Bingham Farms, a technolo- Website: www.hpmich.com. gy integrator and software reseller, Christian Financial Credit Union, Ro- show your was selected by the Law Offices of seville, launched CU@Soup, which Joumana B. Kayrouz PLLC, Southfield, lets member entrepreneurs pitch busi- to upgrade a computerized phone sys- ness ideas to fellow credit union mem- tem with additional users and to add bers over dinner in exchange for the thanks eight additional workstations. chance to win a micro grant. Website: www.christianfinancialcu.org. EXPANSIONS with a sizzling steak for Qualitech, Bingham Farms, a technol- Check Corp., Troy, has expanded into ogy integrator and software reseller, the circuit board manufacturing busi- launched its cloud computing division ness. Telephone: (800) 927-6787. Web- to oversee hosted solutions for manag- dad. site: www.checkcorp.com. ing servers, infrastructure, software Jewish Community Center, West Bloom- applications, security and backup, field Township, has opened The Berman email and hosted exchange. Website: Center for the Performing Arts at 6600 www.qualitech.net. Maple Road. Telephone: (248) 432-5420. North American Bancard, Troy, Website: www.jccdet.org. expanded the reach of Pay Anywhere, Lear Corp., Southfield, opened a new a credit card reader for mobile electronics facility in Rabat, Morocco. payments, now compatible with An- Website: www.lear.com. droid devices. Website: www.pay The Coburn-Kleinfeldt Eye Clinic has anywhere.com. built an outpatient surgery center ad- Opening early on Father’s Day | Troy | 248.269.8424 | 755 W. Big Beaver Rd. jacent to its Livonia office. Telephone: OPENINGS (734) 421-2020. Coldwell Banker Weir Manuel, a real Wayne County Community College estate brokerage, opened its new head- District, Detroit, is expanding to pro- quarters at 294 E. Brown St., Birming- vide space for 9,000 additional stu- ham. Telephone: (248) 644-6300. Web- dents. Website: www.wcccd.edu. site: www.cbweirmanuel.com. 20110606-NEWS--0015-NAT-CCI-CD_-- 6/3/2011 10:56 AM Page 1

June 6, 2011 CRAIN’S DETROIT BUSINESS Page 15

CareerWorks online Visit www.crainsdetroit.com /careerworks to search for jobs, post a résumé or find talent.

PEOPLE ham Farms, from vice president and IN THE SPOTLIGHT general manager of industry solutions. Southfield-based EHIM Inc., a pharmacy benefits manager MANUFACTURING serving more than 2.5 million people in the United States, has Ali Daniel to director of government Them named Jeffrey Lewis COO. sales, Sloan Valve Co., Detroit, from Lewis, 56, had vice president, Falcon Waterfree been Technologies, Detroit. president, Rick Levin to executive vice president chief operating of operations, Harvey Industries LLC, executive and Livonia, from vice president of global chief of staff to brake operations, Affinia Group Inc., Teresa Heinz Ann Arbor. at Heinz Family Gerard Gonos to Philanthropies director of manu- in Washington, facturing, Jervis D.C. B. Webb Co., Lewis He assumes Farmington duties of the former COO/CFO Lee Hills, from direc- Grubb, who died in late 2007. tor of manufac- Lewis earned a Bachelor of turing, Morgan General Studies with distinction Advanced Mate- from the University of Michigan, a rials and Tech- Master of Science in gerontology nology, Fostoria, Ohio. from the University of Southern Gonos California and a juris doctorate from the Northwestern School of MARKETING Law at Lewis and Clark College in Carol Paruch to vice president of sales, Portland, Ore. automotive, Adnetik, Detroit, from Midwest sales director, CPX Interac- FINANCE tive, Rochester J. David Elwood III Hills. to assistant vice president and RETAIL area sales manag- Marc Trobman to er, Fifth Third vice president of Bank, Southfield, business develop- from senior mort- ment, Avanti Press Inc., De- gage lender, troit, from senior Charter One vice president, Bank, Birming- business develop- Elwood ham and Farm- Trobman ment, Recycled ington Hills. Paper Greetings Inc., Chicago. INFORMATION TECHNOLOGY SERVICES Rick Cunningham Amy Draybuck to It’s not how many points you have — it’s what you can do with them. to vice president business develop- and general man- ment manager, ® Balance Massage With FlexPerks, your points go farther. At just 20,000 FlexPoints you earn ager of Michigan, Therapy, Ann Ar- Ohio, Iowa and bor, from pro- award ﬂights up to $400 in value on more than 150 airlines. You can also Kansas City mar- gram director, kets, Paetec Hold- Youth Design, Cunningham redeem for cash or merchandise. Choose the right FlexPerks solution for you ing Corp., Bing- Draybuck Boston. or your business. Apply at any U.S. Bank, ﬂexperks.com or 800-360-2900. Managing Commodity Pricing: What are the benefits to your business? The continuing volatility in commodity prices is a challenging issue for business owners in many industries. Webcast Event Wednesday, June 15, 2011 Noon to 1:00 p.m. EDT RSVP: Call 1.800.847.6424 or visit www.mcdonaldhopkins.com Attorneys on a Mission® Your mission is our mission. We never lose sight of it.

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June 6, 2011 CRAIN’S DETROIT BUSINESS Page 17 Food vendors find Detroit restrictions unappetizing

BY NATHAN SKID mile radius around the stadiums vending license in the city, so in- Stationary food vendors and mo- CRAIN’S DETROIT BUSINESS we can’t come around.” stead of collecting more violation bile food carts are also typically re- I didn’t want to be Aquilina said he is growing a tickets, she’s transformed Pink stricted to selling a limited num- When Jeff Aquilina decided to “ customer base in Livonia and is FlaminGo! into a private catering ber of items, including hot dogs, leave his position as executive a guerrilla-style exploring taking Concrete Cuisine company until the regulations are ice cream, fresh fruit and nonalco- chef at one of Detroit-based Trow- to Royal Oak if he can’t sell his eased. holic beverages like coffee and bridge Restaurant Group’s restau- restaurant. food in Detroit. “All last year we were out on the soda. rants to open a mobile food truck ” Detroit’s current ordinances streets, but we were given three Vendors are not allowed to sell called Concrete Cuisine, he planned Kristyn Koth, Pink FlaminGo! prohibit food trucks and station- warnings and a ticket,” Koth said. within 100 feet of a business that on hungry Detroit Tigers and Lions ary vendors from selling in both “I never wanted to run illegally, sells similar goods, nor can they fans making up a good chunk of opened for business just two weeks the central business district and and I didn’t want to be a guerrilla- sell their products between 11 p.m. his clientele. ago, it has already hit a major the cultural center — eliminating style restaurant.” and 7 a.m., cutting out potential Aquilina and Justin Kava spent bump in the road: The culinary potential lunch hubs like Campus Koth says she has several sales from post-bar crowds. $50,000 and a year’s worth of time truck is not allowed to vend in lo- Martius, Midtown, the museum friends running successful food Chris Gulock, a city planner restoring a truck they purchased cations they expected to be the district and the stadiums. trucks in New York who want to with the Detroit Planning Commis- on Ebay, creating a menu and de- most lucrative. Kristyn Koth, owner of Pink bring their operations to Detroit sion, said the commission is hesi- vising a plan to get their upscale “The city of Detroit is already FlaminGo!, a fledgling food truck but are concerned about the lack of tant to change the ordinances be- comfort food out on the streets. putting limits on us,” Aquilina based out of Corktown, said she cooperation by the city govern- cause it wants to protect current Although Concrete Cuisine said. “Apparently there is a three- has had trouble obtaining a proper ment. restaurant owners from competition. “Our established retail base is so fragile that it would hurt the restaurants that are already here,” REAL ESTATE Gulock said. “The vending ordinances have been in place since AUCTIONS AUCTIONS LUXURY PROPERTY the 1940s.” Gulock said the planning com- Sealed Bid Auction 5 million to build! mission is holding a public hear- Yours for only $2,299,000 ing on the issue June 16. Spencer Olinek of the Detroit Eco- Public 18 Hole nomic Growth Corp. said the city’s Golf Course lack of a proper vending ordinance is not malicious, just outdated. 122+/- Ac & 4 Bldgs “It’s an ordinance that pre-dates Sealed Bids DUE, this growing interest in mobile Thurs, June 30th, 2011 food vending,” Olinek said. “It’s By 5:00PM not like this was crafted to prevent small business owners from start- Centerview Golf Course 7043 HILLSIDE DR ing a food truck. It’s simply that 5640 N Adrian Hwy, Adrian, MI 49286 Luxurious estate with infinity pool on the interest in that sort of thing Directions: North on M-52 From Adrian. Rolling Landscape w/ornamental plantings, 6,335 Ft. all sports Deer lake. Over 9000 sq ft of did not exist.” Par 71-72 Course, 2 level Clubhouse w/Basement 1BR apartment Built in 1970. Restaurant, unbelievable quality and amenities Jess Daniels, co-owner of De- Bar, Liquor License, Full Kitchen, Main level Dining, Basement & 2nd Level Banquet Rooms, throughout. A truly must see! troit-based Neighborhood Noodle Total Seating of 440. Metal Frame Heated Maintenance Bldg 2,560 SqFt w/2 Overhead Open June 9th 11-4 and founding member of The De- Doors Includes Course Maintenance Equip Main cart Bldg.2,400 SqFt w/1 Overhead Door, troit Food Entrepreneurs, a group of Drew Colburn 248-320-7007 Carts & a Private Members Cart Bldg.894 SqFt. like-minded foodies, brought their For More Info., Terms & Bidding Procedures go to Our Website: www.wilsonauctionltd.com or Eric Roslonski 248-379-7442 concerns to the City Council. Request a Bid Packet by calling 866-870-5500. Bids MUST be in by the DUE DATE. The group wants Detroit to use BIDS MUST BE SUBMITTED TO: Wilson Auction & Realty Co., Ltd. the same definitions as the state NO LATER THAN Thurs, June 30, 2011 @ 5:00PM does when it comes to food vend- 825 N. Main Street, Bryan, OH 43506 MISCELLANEOUS ing. WILSON AUCTION & REALTY CO., LTD. The state defines a mobile food Subdivision - Fenton Twp. Bryan, OH 419-636-5500 Toll Free 866-870-5500 100 lots. cart as a food service operation Auctioneers: Wayne M. Wilson, CAI —— Brent J. Wilson, CAI Water, sewer, roads. Ready to build. that serves a limited menu from a $5,500. Owner wants it sold! www.WilsonAuctionLtd.com small open-air push cart. It defines Please contact: a special transitory food unit Bill McMachen 586-915-4441 (STFU) — commonly called a food INDUSTRIAL PROPERTY [email protected] truck — as a fully functional AVAILABLE NOW restaurant on wheels. Daniels said she also wants to 4,000 to 100,000 sq. ft. OFFICE SPACE have one department oversee food vending in the city. Also 10,000 & 25,000 sq. ft. Flint Township Office Building According to Daniels, vendors Free Standing Bldgs w/truckwells. have to deal with the safety and engineering department for approval 1 Mile from Metro Airport of sites and routes; the health department for routes, cart plans and REA CONSTRUCTION • Class A Office Building inspections; and the recreation de- (734) 946-8730 • I-69 / I-75 / US23 near Bishop Airport partment if sites are in public • Up to 20,000 Sq. Ft. Available - 300 car parking parks. 1 2 . 34 • Fully Furnished with 100 pre-wired workstations 5"/ /' 6' 7 ( + 9 . : Also Heavy Industrial • 800 kw backup generator Daniels said it was too difficult

5 ; 7 / 6 < :"= 9 Land Available • General Offices, Call Center, Data Center or to get city approval for a food > 6' 7 "?7 Medical Offices truck, so instead she took advan- 248-496-3405 www.reaconstruction.net tage of a loophole allowing a food truck operator to apply for a !" # $$% % $ X

PROPERTY MANAGEMENT statewide permit that can be used ' a $ b * in any city as long as the permit- + + a , $ Pontiac Warehouse for Lease holder informs the city. $ % $ +$ Best Deal in Town! But it doesn’t supersede all local + # ' - $ rules, so she’s not allowed to sell in b ' +' , downtown Detroit neighborhoods, . / Professional Multi-Family Management ' / 0 for over 45 years. even on private property. “A health inspector made it - . " , ( . , @@A ( ?11B

Page 18 CRAIN’S DETROIT BUSINESS June 6, 2011 Gores brothers steeped in dealmaking Among the potential bidders for 1989, according to the Gores Group Berkshire Partners LLC and Greenbri- Borders Group Inc. is Alec Gores, LLC website. In 1993, it purchased ar Equity Group LLC. 800-292-3831 brother of new Detroit Pistons own- Applicon LLC in Ann Arbor then Tom Gores also owns Troy- indiantrails.com er Tom Gores. sold it in 1999. In 1996, it purchased based Acument Global Technologies Alec Gores runs Los Angeles- MAI Basic 4 in Grand Rapids and Inc., a metal-fastener manufactur- based private equity firm Gores sold it in 1998. er that Platinum bought in 2006 for Group LLC while his younger broth- Media reports earlier this year $630 million from Textron Inc. er, Tom, is both a competitor and said he was mulling a purchase of In January 2010, he picked up occasional business partner with the troubled Los Angeles Dodgers — Cadillac-based recreational-power- his Beverly Hills-based Platinum a team said by Forbes to be worth boat manufacturer Four Winns LLC

ONE HU G ND Equity LLC. $800 million but saddled with as part of a $70 million deal for the IN R T E A D Alec’s firm, founded in 1987, has $600 million in liabilities and an assets of bankrupt, Minneapolis- R Y B E

E A

L R acquired 60 companies worldwide uncertain fate as its current own- based Genmar Holdings Inc.

E S C 100 with combined revenues of over ers go through a divorce. He bought Farmington Hills- $15 billion since its inception, ac- Recently, the Gores brothers based vehicle wire harness and cording to the firm’s website. Cur- worked together in an attempt to electronic distribution systems rently, it has $2.7 billion in equity acquire Warner Music Group Corp. manufacturer AEES Inc. for an under active management. Alec and Tom jointly bid $3 billion undisclosed sum in 2009 from Alcoa Locally, the firm bought Romu- for the New York City-based music Inc. lus-based vehicle transporter Unit- publisher’s recorded music and Also in 2009, he was unsuccess- ed Road Services Inc. for $110 mil- publishing assets but lost out to ful in a bid to buy Troy-based auto lion in November 2007 from Russian billionaire Len Blavatnik. supplier Delphi Holdings LLC for Charterhouse Equity Partners III L.P. Tom Gores has a number of $3.6 billion. and KPS Special Situations Fund L.P. Michigan holdings. He recently Tom Gores has homes in Los An- Over the years, the firm has bought a majority ownership of geles and Grosse Isle; Alec lives in bought and sold Michigan compa- the Belleville-based logistics com- the metropolitan Los Angeles area nies. It founded Ventech Solutions pany Active Aero Group Inc. from a as well. Comfort and Inc. in Flint in 1987 and sold it in consortium of sellers that includes — Daniel Duggan and Bill Shea t$IBSUFST Luxury Borders: Chain says bids coming in t5PVST ■ From Page 1 Both cases show investor inter- tools in the setting for an 18th cen- Poor performance has been t4IVUUMFT 00 est remains strong for bookstores, tury business. It’s still very power- widespread in the book retailing said Michael Norris, a senior ana- ful.” industry. As a whole, the retail in- $100 OFF t$POWFOUJPO4FSWJDFT SAVE lyst specializing in bookselling for Borders Group (PINK: BGPIQ) dustry is losing ground to online Rockville, M.D.-based Simba Infor- won’t commit to a sale, though. and e-book platforms, said Mike t$PSQPSBUF&WFOUT mation. Since entering bankruptcy, the Souers, an industry analyst cover- Contact Indian Trails for details. Must use this “Even though e-books get the company has pursued a dual path ing Borders for S&P Equity Re- promotional code at time of booking: 2011CDB-JUN t4DIFEVMFE4FSWJDF headlines, print is still a reliable of a sale or a restructuring. search. business,” he said. “Especially as The company was given a four- “E-books aren’t besting retail you see these businesses using so- month extension to craft a restruc- books yet, but the transformation cial media and other 21st century turing plan last week over objec- will continue,” he said. tions by the committee of Looking toward the future are unsecured creditors — largely the investors fighting over Barnes made up of book publishers and & Noble. distributors. Borders has until John Malone’s New York-based Oct. 14 to craft a plan that creditors Liberty Media Corp. has been in a will accept. bidding war with Ron Burkle of Yu- PRESENTS The creditors had been ramping caipa Cos. to buy New York-based up pressure to craft their own re- Barnes & Noble. organization plan. Souers said the interest in In a court filing, the group based Barnes & Noble is not totally on its case on the losses that continue the bricks-and-mortar portion of to grow, which will take away the business, but rather the poten- from what the creditors may get tial to invest heavily in the Nook out of the company if it is sold. and build an online sales opera- Since filing for Chapter 11 bank- tion to rival Amazon.com and its A sponsored webinar ruptcy in February, Borders has Kindle. seen its gross revenue plummet “Long term, e-books are expect- How can your company and losses mount. ed to continue taking market PART THREE OF A THREE-PART SERIES From the beginning of February share from physical books,” he determine the best way to the end of April, the company said. to generate the capital had a net loss of $160.5 million. Souers, who previously covered That loss is already greater than Borders but no longer covers it it needs? Joe Angileri, Generating the $109.4 million the company due to its bankruptcy, cannot com- Michigan Managing saw in 2009 and halfway to the ment on the company. We’ll discuss: Partner, Deloitte LLP $299 million loss of 2010. McTevia said it’s not surprising Capital to Fuel Various methods for accessing The company is on pace for that buyers are circling because a additional capital to drive growth $1.5 billion in sales this year, ac- common outcome of a company in cording to court documents, close bankruptcy is for private equity to $1 billion less than the $2.3 bil- investors to buy off chunks at a Growth The shifting M&A landscape and lion in revenue during 2010. time. what it means for your company Meanwhile, the 642 stores Bor- In the case of Gores, it’s a bid for Bob Coury, ders had going into bankruptcy roughly half the stores, a source Managing Director, Opportunities for enhancing have been winnowed to 405. told the Wall Street Journal last Deloitte Corporate your company’s desirability Jim McTevia, managing partner week. Finance LLC of Bingham Farms-based consult- But the buyer will need to put a to potential buyers ing firm McTevia & Associates, said lot of work into the business, not to Borders’ recent losses do not come mention potentially facing Malone What you need to consider when as a surprise. as a competitor, McTevia said. JUNE 23|Noon – 1 p.m. EST assessing a strategic buyer versus “Borders is a classic example of “Anybody buying Borders will a private equity ﬁrm a company that should have done need to make it a speculative ven- this a long time ago but didn’t,” he ture,” he said. “It’s not working. It To learn more, please visit Jack Koenigsknecht, said. “Now they’re in bankruptcy needs to be refinanced. It has a lot www.crainsdetroit.com/crainsevents The advantages and disadvantages Accounting Partner, doing things like closing stores of problems.” of taking your company public M&A Transaction Services, and downsizing — the things they Daniel Duggan: (313) 446-0414, FREE to Crain’s readers Deloitte & Touche LLP should have done a long time [email protected]. Twitter: ago.” @d_duggan 20110606-NEWS--0018,0019-NAT-CCI-CD_-- 6/3/2011 5:11 PM Page 2

June 6, 2011 CRAIN’S DETROIT BUSINESS Page 19 Pistons: Gores’ $325M far below expected price for team ■ From Page 1 $325 million), are you kidding me? cent of the Pistons and will main- familiar with the situation said The firm’s typical M&A tech- that he won’t pull the trigger on They ripped her face off.” tain a single-digit equity stake. Gores paid for much of the trans- nique is to insert a team that eval- any player deal that’s “frivolous.” The Pistons sold for $125 million The remaining 24 percent was split action with his own money. uates the acquired company’s less than the last NBA team to among several people, who agreed There will be a minority invest- business practices and potential. change hands: The Golden State to sell their shares when she sold ment in the sale by one of the pri- They look for redundancies and Larger investments Warriors were sold for $450 million the majority. vate equity funds controlled by ways to create efficiencies that im- The Pistons and Palace Sports in July. The transaction includes the Gores, the $2.75 billion Platinum prove cash flow. don’t represent a particularly Factors driving the Detroit sale Pistons and Auburn Hills-based Equity Capital Partners II. Gores on Thursday indicated he large investment for Gores or Plat- include the distressed local econo- management company Palace In March, Forbes.com estimated plans to keep the two top execu- inum Equity. my, the team’s poor performance, Sports & Entertainment. PS&E in- that Gores is worth $2.4 billion, tives in Auburn Hills: PS&E CEO “We’ve made financial commit- looming NBA labor trouble and cludes 22,076-seat Palace of making him the 161st-richest Alan Ostfield and Joe Dumars, ments that are much larger,” Davidson’s stated desire to no Auburn Hills and DTE Energy Music American and 488th-wealthiest president of basketball opera- Gores said. longer be a team owner. Theatre and holder of the contract person in the world. tions. As of publication deadline, For example, he owns Troy- In January, Forbes.com valued to manage Meadow Brook Music Fes- Gores launched Platinum Equi- Gores was expected to meet soon based Acument Global Technologies, the team at $360 million, which tival for Oakland University. ty in 1995. It reported about $11 bil- with head coach John Kuesters a metal-fastener manufacturer represented a $119 million decline The PS&E unit is believed to col- lion in revenue last year from its amid speculation that he’ll be that Platinum bought in 2006 for in estimated value over 12 months lect about $70 million annually in portfolio of 35 companies, many of fired. $630 million from Textron Inc. Gores and Davidson’s camp ne- revenue. which were troubled or in dis- Dumars told reporters on In December, Platinum complet- gotiated for months, haggling over Forbes reported the Pistons’ an- tressed sectors when Platinum in- Thursday that he’d been limited ed the $777 million public-to-pri- terms and price, those with knowl- nual revenue for the 2009-10 season serted its turnaround teams to in what players moves he could vate acquisition of Jeffersonville, edge of the deal told Crain’s. at $147 million, down from $171 boost profitability. make until a sale closed, but now Ind.-based American Commercial Gores, a Los Angeles private eq- million the previous season. The Financing the Pistons-PS&E he will be able to spend some mon- Lines Inc., an inland marine trans- uity billionaire with Michigan operating income estimate — sale are Comerica Bank and Pitts- ey. portation and service company roots, was introduced as the new which Forbes defines as earnings burgh-based PNC Financial Services Gore said the Pistons have “a with $850 million in revenue and owner on Thursday. He said he before interest, taxes, depreciation Group Inc. PNC is the team’s pre- good base” of players but “there’s about 2,570 employees. doesn’t intend to spin anything and amortization — fell to $32 mil- senting sponsor. pieces that have to be added.” He’s In 2009, he was unsuccessful in a from the sale. lion from $47 million a year ago. Two New York City firms, Gold- willing to spend money to get bet- bid to buy Troy-based auto supplier Gores takes over the franchise The Pistons have been losing man Sachs and SCP Worldwide, ad- ter players — but only if the deals Delphi Holdings LLC for $3.6 billion. and sibling businesses from David- money and are among the 19 fran- vised Platinum Equity on the ac- make sense. Bill Shea: (313) 446-1626, son, who inherited the team from chises to borrow from the league- quisition. “We’re prepared to spend if the [email protected]. Twitter: Guardian Industries Inc. Chairman wide $2.3 billion low-interest credit Davidson retained New York- value is there,” he said, adding @bill_shea19 William Davidson, who died in facility. The league caps borrowing based Citi Private Bank Sports Advi- March 2009. against the facility at $125 million, sory to act as financial advisers on Additionally, Ethan Davidson, but it’s not known how much the a sale. Citi has declined to com- son of late Pistons owner William team has borrowed to cover its bills. ment throughout the entire Davidson from a previous mar- The new owner will assume all process. riage, said he sold his minority debt. She also was represented by stake to Gores but is in talks with Birmingham-based Williams, him to buy back a share. Williams, Rattner & Plunkett P.C. “For me, things pretty much Deep pockets Other firms involved in the sale in- stay the same,” he said. Gores, 46, owns Los Angeles- cluded Bloomfield Hills-based Karen Davidson owned 76 per- based Platinum Equity LLC. A source Honigman Miller Schwartz and Cohn LLP and Chicago-based Katten Muchin Rosenman LLP. William Davidson bought the Pistons for $8 million in 1974 from Fred Zollner, who had moved the Your Bank’s franchise to Detroit from Fort Wayne, Ind. Zollner founded the team there in 1957. Not Lending? No spinoff plans The Pistons purchase is not one of the leveraged buyouts that Gores used to grow Platinum Eq- uity into a firm that has averaged $8 billion to $12 billion annually in revenue over the past five years. When asked if, as a private equity figure, he planed to sell any of the Palace Sports units, Gores said such a move would be “silly” and that acquiring the team and PS&E as private equity targets with the intent of spinning them off would- n’t work financially. “These are very important assets,” he said. “We have no plans ours are to spin any of that off.” The venues collectively host 300 . events for 3.5 million people annu- Call for a free consultation. ally. Loan amounts: $1,000,000.00 and above. Gore has deployed two of Plat- inum Equity’s Boston-based part- s Investment Real Estate s Equipment ners at the Palace to act as his se- s Owner Occupied Real Estate s Turnaround Consulting nior executives in charge of the s Lines of Credit s Loan Modiﬁcations operation. One is Robert Went- s Accounts Receivable s Bank Workouts worth, a former Ernst & Young CPA and a former CEO, and the other is Phil Norment, Platinum’s senior executive responsible for evaluat- ing investment initiatives. Both joined the firm in 1997. “We know how Tom thinks, and he knows how he thinks,” Nor- 800.509.3552 ment said. www.eclipsecapitalgroup.com Platinum staffers have been at 2207 Orchard Lake Road, Sylvan Lake, MI 48320 the Palace for some time studying “Since 1997” operations. 20110606-NEWS--0020-NAT-CCI-CD_-- 6/3/2011 6:51 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS June 6, 2011

Dykema: CEO hands off grown-up firm EMAGINE’S INCENTIVES FOR SOLAR PANELS Ⅲ The U.S. Department of Treasury offers a 30 ■ From Page 3 SOLAR SYSTEM percent renewable-energy grant or a 30 percent Silicon cells in the federal tax credit. A strategy to expand its real es- by attorney headcount, with about provide a return to the sharehold- solar panels at Ⅲ The IRS allows 100 percent of the solar tate practice in the Midwest 325 partners, associates, senior aters. And we were one of the perfor- Emagine Royal system cost to be depreciated on federal taxes helped expand the Chicago office torneys and other non-partner mance leaders there, even during Oak and Star in the first year under the Modified Accelerated from 14 attorneys when Schlay- track lawyers. Dykema trails one of the largest downturns in Lanes generate Cost Recovery System. baugh took over to around 110 to- slightly at 310 attorneys but typi- modern history.” DC power, which Ⅲ The increased value of the property from the day, largely through law firm cally outpaces Miller Canfield rev- Ralph McDowell, chairman of De- is transferred to array is exempted from local property taxes. mergers with Rooks Pitts in 2004 enue by more than $20 million per troit-based Bod- inverter boxes next to the panels Ⅲ A Solar Renewable Energy Credit is equal to and Schwartz Cooper in 2008. The year. Honigman Miller Schwartz and man PLC, said his on the roof. The one megawatt hour of electricity generated from firm also has added offices in Dal- Cohn LLP has about 210 attorneys, firm of about 140 resulting AC power solar panels. las, Los Angeles and the Chicago typically ranking second in attorneys also is sent to the Producers can claim the value and sell that suburb of Lisle during Schlay- Crain’s lists. American Lawyer es- improved prof- building’s power value to utility companies in auctions at baugh’s tenure and may add at timates of revenue for that firm itability amid room. Michigan between $150 and $350 per credit. least one more out-of-state market ($158 million) also show strong fairly constant Solar & Wind Under a 20-year contract, DTE Energy Co. by early next year. per-attorney revenue. revenue and, Power Solutions purchases Emagine’s SREC’s at $220 each. “The Southeast is an area of Schlaybaugh attributes the bot- like Dykema, re- of Commerce Half was paid to Emagine when its contract was growth we could consider, but so is tom-line growth at Dykema to a cently expanded Township installed signed and half is paid through energy credits the 162-panel doing more within Michigan,” he mix of annually updated perfor- in the Dallas on each DTE bill. array. said. “I’ve been less concerned mance targets for practice group McDowell market and by with geographic markets and leaders and tracking larger mar- laterals, including a banking attor- more concerned about the contri- ket trends like the surge in bank- ney recently hired from Dykema. bution a specific acquisition actu- ruptcy filings two years ago and But he said Bodman has so far ally makes to our own practices demand for new federal law com- avoided pursuing revenue by Solar: Key to financing rather than growth for growth’s pliance work. The compliance adding or growing offices outside sake. We can go out and add all work is largely related to the Dodd- its five within the state — a trend ■ From Page 3 kinds of work to our top line. But Frank Wall Street Reform and other top law firms followed in re- Emagine was preapproved for a is it work we want?” Consumer Protection Act and the cent years, like Dykema, Miller $3.5 million subordinated second The firm also grew revenue Patient Protection and Affordable Canfield (Toronto, Shanghai and mortgage with a 20-year Small The residential 111 percent from $83 million in Care Act of last year. Monterrey, Mexico), Dickinson Business Administration 504 loan. “ 2001, and profits per partner from Wright PLLC (Toronto and Las Ve- The firm also had small “struc- “The SBA had a $1.5 million market dropped off $300,000 to $555,000 over the same tured cuts” that shed underper- gas) and Clark Hill PLC (Chicago and lending limit, but if you meet cer- period. Revenue was off slightly forming attorneys in 2009 and ear- Phoenix). tain public policy goals (like so- because the from 2009, even though compara- ly 2010 amid flat legal budgets and “What we try to do instead is of- lar), you could expand that cap to bly sized firms nationwide grew the lending market collapse, along fer the services our clients need but $5 million,” Glantz said. incentives from the gross revenue 2.2 percent nation- with new lateral hires, which im- maintain Michigan pricing, which “I am not sure the project wide, according to new data re- proved average output per attor- is harder if you build out your foot- utilities stopped. would have gone forward with- leased last week by The American ney. print (in other markets),” he said. out the solar panel investment,” ” Lawyer. But Dykema did grow “In the past two years, our top “Our basic growth has been Mark Hagerty, Michigan Glantz said. “It was integral for profitability and revenue per line has been relatively flat but very steady, building up first-year Solar & Wind Power Solutions lawyer over the preceding year. our bottom line has increased each associates, and we’ve noticed the us to secure the financing. I saw Miller Canfield Paddock and Stone of those years,” he said. “My job as market has improved enough late- it as a win-win because it is ap- bine at Mark Twain Elementary PLC is Michigan’s largest law firm the leadership of a business is to ly for a little more natural attrition pealing to our young audience School in Detroit; four, 1.2 kilowatt to create some turnover for later- and the payback makes economic wind turbines at Henry Ford High als and associates. People tend to sense after the incentives.” School in Detroit; three turbines stay where they are in a tough Another priority for Glantz totaling 7.1 kilowatts at Dearborn- economy, so that (trend) is good.” was to hire a Michigan-based based Henry Ford Community Col- Schlaybaugh was to conclude company to install the solar pan- lege; and a 2.4 kilowatt turbine at his third and last three-year term el. After taking bids from nation- Bowers School in Bloomfield Hills. of office under Dykema’s bylaws in al companies, Glantz chose “We purchase most of our tur- OUR FIELD. Michigan Solar. bines out of Arizona,” Hagerty late 2010, but the firm agreed to a one-year extension for his and oth- Since Mark Hagerty founded said. er board seats to maintain stabili- Michigan Solar in November Hagerty said growth this year YOUR DREAMS. ty through the downturn and pro- 2007, the company has grown to has been driven by wind turbines vide greater lead time for a eight employees and $1.2 million and large commercial solar pro- succession plan. in sales projected for 2011. jects. Tigers 2011 Summer Fantasy Camp He plans to advise the appointed “We use about two dozen elec- “The residential market at Comerica Park. successor during a transition peri- trical contractors to do the major- dropped off because the incen- od before stepping down Dec. 31. ity of our installations,” said tives from the utilities stopped,” SEPTEMBER 16 – 18, 2011 Schlaybaugh, 62, a Birmingham Hagerty, a former fire alarm de- he said. resident who joined the firm in sign engineer with National Time Don King, director of sales Ever dreamed of playing for the Tigers? 1982, said the new chairman-CEO & Signal in Wixom. Some of the with Michigan Solar, said the We can make your dreams come true. doesn’t have to be a Michigan electrical companies include company is negotiating contracts lawyer. Dykema currently houses DMH Electrical LLC and G&B Elec- to put solar panels on several its chief marketing officer, intellec- tric, both with offices in Ferndale. sheds in the Eastern Market and tual property chief, training direc- Michigan Solar purchases its a building owned by Avalon Bakery tor and director of business intake panels from SolarWorld USA, a in Midtown Detroit. in Chicago, and at least one board Hillsboro, Ore.-based company, Later this year, Emagine Royal member practices in Los Angeles. but the silicon cells in the panels Oak plans to seek certification “There will be candidates from are manufactured by Hemlock for LEED, or Leadership in Ener- all our offices. I can’t really handi- Semiconductor Corp., part of Mid- gy and Environmental Design. cap (the search),” he said. “There’s land-based Dow Corning Corp. “We haven’t pounded our chest nothing in our literature that des- “We have never installed a Chi- enough about what we have done ignates one office over the others nese panel,” King said. “We have (from an environmental and al- as a headquarters, and I think to- concerns about lower quality and ternative-energy standpoint),” day a national law firm like that lack of technical support.” Glantz said. “We have focused on needs to be flexible. He or she may Other Michigan companies the quality of the venue. We plan be a resident, and we do happen to on marketing more about this be- have more lawyers in Michigan that Michigan Solar works with cause it is a good story.” than anywhere else.” include Clinton Township-based Schlaybaugh also serves on the Applied Energy Technologies, which The Royal Oak theater has 10 boards of the Detroit Economic Club, makes the aluminum mountings screens and 16 bowling lanes, in- the Detroit Economic Growth Corps, for the panels; and Livonia-based cluding four in a private room that the Metropolitan Affairs Coalition and PEP Stations, which makes the car can be rented for two hours for John Hancock Life Insurance Co. in chargers that are in front of the $500, said George Yarbenet, Emag- Boston, and hopes to add at least Royal Oak theater for electric ve- ine Royal Oak’s general manager. one or two other board posts as hicles like the Chevy Volt. Emagine Entertainment also well as spend more time with ma- While 85 percent of Michigan operates five other movie the- For more information or reservations jor corporate clients and in his Solar’s business is installing solar aters in Novi, Canton Township, transactional practice after step- panels on the roofs and awnings of Woodhaven, Birch Run and CALL 313-471-2550 ping down. homes and businesses, the compa- Rochester Hills. or visit detroittigersfantasycamp.com Chad Halcom: (313) 446-6796, ny also installs wind turbines. It Jay Greene: (313) 446-0325, [email protected]. Twitter: has 10 projects under way. [email protected]. Twitter: @chadhalcom Jobs include a 2.4 kilowatt tur- @jaybgreene 20110606-NEWS--0021-NAT-CCI-CD_-- 6/3/2011 7:02 PM Page 1

June 6, 2011 CRAIN’S DETROIT BUSINESS Page 21 Mackinac: Snyder wields power of positive pushing www.crainsdetroit.com ■ From Page 1 EDITOR-IN-CHIEF Keith E. Crain PUBLISHER Mary Kramer, (313) 446-0399 or His mantra of “relentless posi- tics, production technology and [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- tive action” appeared to be conta- metal manufacturing. 0460 or [email protected] gious. The push reflects what has become a “Clusters don’t develop random- DEPUTY MANAGING EDITOR Jennette Smith, Even Detroit Mayor Dave Bing ly. One cluster gives rise to anoth- (313) 446-1622 or [email protected] SENIOR EDITOR Bob Allen, (313) 446-0344 or — who gave a series of interviews signature Snyder approach: Define the er, which gives rise to another — [email protected] Thursday to defend employee that’s how economies grow,” WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- turnover in his administration goal, set a timeline, calmly and frequently Porter said. 8158 or [email protected] COPY DESK CHIEF Gary Piatek, (313) 446-0357 or and the performance of his com- repeat a few key sentences about the goal And, the top elected officials in [email protected] munications chief Karen Dumas the city of Detroit and Oakland, ASSISTANT NEWS EDITOR Jeff Johnston, (313) — put a positive spin on the city’s Wayne, Macomb and Washtenaw 446-1608 or [email protected] and refer to any opposition as some DATA EDITOR Anne Marks, (313) 446-0418 or large tracts of largely unpopulat- counties — dubbed the Fab 5 — [email protected] ed land, calling it an opportunity variation of “democracy in action.” spent much of a Friday session WEB DEVELOPER Steve Williams, (313) 446- to start with a “clean sheet of pa- supporting the city of Detroit. 6059, [email protected] WEB EDITOR Gary Anglebrandt, (313) 446-1621, per.” “The mayor of Detroit is doing a [email protected] In his Friday address, Snyder The push actually began even Oakland County Executive L. great job,” Macomb County Execu- EDITORIAL SUPPORT Robertta Reiff (313) 446- said Michiganians present the before the conference, with signs Brooks Patterson said Friday. tive Mark Hackel said. He pointed 0419, YahNica Crawford, (313) 446-0329 promoting the project posted along “When everyone pulls on the same NEWSROOM (313) 446-0329, FAX (313) 446- state’s “own biggest challenge” out that during the past decade, as 1687 TIP LINE (313) 446-6766 and are too negative, tend to look I-75 and “Build the Bridge” buttons item, you can move the ball down Michigan lost population, Macomb REPORTERS in the past, and need a positive, in- passed out to conference attendees the field.” gained 53,000 new residents — Daniel Duggan, senior reporter: Covers retail, real clusive attitude. at the Arnold Transit Co. Mackinac Patty McCarthy, partner in Mc- growth Hackel said he believes estate and hospitality. (313) 446-0414 or Island ferry dock in Mackinaw Carthy Blanchard LLC, which advis- [email protected] He also said people in Michigan comes from confidence in what the Jay Greene, senior reporter: Covers health care, tend to be fairly humble and quiet City. es businesspeople on presentation insurance and the environment. (313) 446-0325 or county offers as far as education [email protected]. about their successes, and that Snyder continued the drumbeat skills and executive presence, not- and quality of life. Chad Halcom: Covers law, non-automotive needs to change. “Who’s going to throughout the conference, en- ed in an email that “Gov. Snyder manufacturing, defense contracting and Oakland “We need to help the city of De- and Macomb counties. (313) 446-6796 or tell the Michigan story as we couraging attendees to lobby legis- is the poster boy for using key troit get that same feeling back,” [email protected]. achieve this stuff?” Snyder said. lators to pass the enabling bills. messages to give the state a Tom Henderson: Covers banking, finance, he said. technology and biotechnology. (313) 446-0337 or That message presumably was di- roadmap to reinvention. … His [email protected]. “Is someone outside of Michigan Wayne County Executive Robert going to tell our success? We have rected primarily at members of his message is urgent, to the point and Nancy Kaffer: Covers small business, the city of Ficano said he and Bing have Detroit, Wayne County government. (313) 446- to tell that story ourselves. We own party, who let similar legisla- memorable.” 0412 or [email protected]. talked about sharing services, but have to tell that story to our tion die last year. McCarthy said Snyder’s call for Bill Shea, enterprise editor: Covers media, it’s time to act. advertising and marketing, the business of sports, friends and neighbors. The $2.1 billion NITC comprises “relentless positive action” is a and transportation. (313) 446-1626 or “We have to start making tough [email protected]. “We need to get a little bit of pos- a publicly owned, privately built good one, but cautioned against as- decisions to lift Detroit up,” he Nathan Skid: Multimedia reporter. Also covers the itive attitude out there. So keeping and operated bridge with publicly suming listeners will know what food industry and entertainment. (313) 446-1654, said. “We’re positive ambassadors [email protected]. quiet about success is to no one’s funded highway interchanges on he’s talking about when he short- for Detroit; let’s all be ambas- Sherri Welch: Covers nonprofits and services. benefit.” both sides of the bridge and a U.S. ens it to “RPA.” (313) 446-1694 or [email protected] sadors for Detroit.” Dustin Walsh: Covers auto suppliers, steel, higher Snyder came to the conference customs inspection plaza. Michi- Snyder’s pitch for the bridge Conan Smith, chairman of the education and Livingston and Washtenaw in the flush of victory after having gan’s $550 million share of the drew support from Bing in a Fri- counties. (313) 446-6042 or [email protected] tax reform, including elimination roadwork is being covered by the day panel session. Washtenaw County Board of Commis- LANSING BUREAU sioners, called Detroit and Ann Ar- Amy Lane: Covers business issues at the Capitol, of the Michigan Business Tax, and Canadian government. The cost of “The governor is our leader and telecommunications and utilities. (517) 371-5355, bor the principal cities of South- FAX (517) 371-2492, [email protected]. or 115 W. his 2011-2012 budget passed by his the plaza is being shared by Cana- we should really support whatever Allegan, Suite 220, Lansing 48933. east Michigan, noting that a strong goal of May 31. da and the U.S. federal govern- direction he wants to go in,” Bing ADVERTISING urban center would help keep Uni- His administration’s first five ment. said. ADVERTISING DIRECTOR Marla Wise, (313) 446- months also saw to-do list plans The push reflects what has be- Conference speakers also helped versity of Michigan graduates in the 6032 or [email protected] state. SALES INQUIRIES: (313) 446-6052; FAX (313) for government and education re- come a signature Snyder ap- reinforce the positive mood. 393-0997 form. proach: Define the goal, set a time- Harvard Business School business And Bing spoke to much ap- ADVERTISING SALES Christine Galasso, Matthew plause on the significance of De- J. Langan, Lori Tournay Liggett, Tamara Rokowski, Coming up: more special mes- line, calmly and school professor and competitive- Cheryl Rothe, Dale Smolinski sages, including health and well- frequently re- ness guru Michael Porter said that troit. CLASSIFIED SALES (313)-446-0351 ness in September; infrastructure, peat a few key despite the economic battering “I think everyone constantly MARKETING MANAGER Irma Clark in such areas as roads and bridges sentences about Michigan has taken, the state has a talks about how important Detroit EVENTS DIRECTOR Nicole LaPointe is to the state of Michigan,” he MARKETING ARTIST Sylvia Kolaski as well as broadband, in October; the goal and re- number of key assets that include SALES SUPPORT Suzanne Janik, YahNica Crawford and workforce development and fer to any oppo- still ranking highly in terms of in- said. “I think it’s beyond that. I CIRCULATION Candice Yopp, Manager. talent in November. sition as some novation, having strong universi- think Detroit is important to this MARKETING COORDINATOR Jenny Griffith At Mackinac, he began his push variation of ties and having several “natural country.” PRODUCTION MANAGER Wendy Kobylarz PRODUCTION SUPERVISOR Larry Williams to win approval for the authoriz- “democracy in endowment” advantages, includ- Amy Lane: (517) 371-5355, ing legislation for the New Inter- action.” ing being a major international [email protected]. Twitter: CUSTOMER SERVICE national Trade Crossing in his “Gov. (Rick) trade hub. @alanecdb MAIN NUMBER: Call (877) 824-9374 or write opening remarks at the confer- Snyder has an Patterson The state also has several strong Nancy Kaffer: (313) 446-0412, nkaf- [email protected] SUBSCRIPTIONS $59 one year, $98 two years. ence: “It’s time to build the identifiable agenda, and every- and interlocking industry clus- [email protected]. Twitter: @nan- Out of state, $79 one year, $138 for two years. Outside U.S.A., add $48 per year to out-of-state bridge.” body pulls in the same direction,” ters, including automotive, plas- cykaffer rate for surface mail. Call (313) 446-0450 or (877) 824-9374. SINGLE COPIES: (877) 824-9374. REPRINTS: (800) 290-5460, ext. 125; (717) 505-9701, ext. 136; or rosie.hassell @theygsgroup.com. TO FIND A DATE A STORY WAS PUBLISHED: Delphi: Lull in market could delay supplier’s IPO (313) 446-0367 or e-mail [email protected]. CRAIN’S DETROIT BUSINESS IS PUBLISHED BY ■ From Page 3 CRAIN COMMUNICATIONS INC. CHAIRMAN Keith E. Crain ingstar Inc. Whiston, automotive senior equity “show-me stock” until the compa- based Cooper-Standard Holdings Inc. PRESIDENT Rance Crain SECRETARY Merrilee Crain “The market is clouded by the analyst for Morningstar. He said ny’s performance reaches that of a have either filed or expressed in- TREASURER Mary Kay Crain weak economic numbers right the market is still biased against BorgWarner or JCI. tent to file an IPO, but have yet to Executive Vice President/Operations William A. Morrow now,” he said. “There’s still supply U.S. OEMs because investors be- “In Delphi’s case, consider actually hold the offering. Group Vice President/Technology, chain issues arising from the lieve they are too largely tied to some of the other auto industry Delphi has offered no specific Manufacturing, Circulation Robert C. Adams Japan earthquake, which makes trucks and large SUVs. IPOs that have been threatened for timeline to the IPO, said Lindsey Vice President/Production & Manufacturing things a little bit concerning for in- Many suppliers are down as well a long time but failed to launch,” Williams, director of corporate Dave Kamis Chief Information Officer vestors. This is all going to affect since GM’s IPO: Troy-based Meri- Cliff Roesler, managing director of communications. Paul Dalpiaz the interest of investors, and we tor Inc. is down nearly 25 percent to Birmingham-based investment ad- Hilgert said the timing will like- Director of Operations really don’t know how the IPO will $15.35 a share, and Detroit-based visory firm Angle Advisors LLC, said ly be determined by private equity Michelle Roth G.D. Crain Jr. Founder (1885-1973) shake out.” American Axle & Manufacturing Hold- in an email. firms Elliot Management Corp. and Mrs. G.D. Crain Jr. Chairman (1911-1996) General Motors Co.’s Nov. 17 IPO ings Inc. is down just over 1 percent “I think any successful public of- Silver Point Capital LP, who bought EDITORIAL & BUSINESS OFFICES: 1155 Gratiot Ave., Detroit MI 48207-2732; (313) left Southeast Michigan talking re- to $10.73 a share. fering of either stock or debt is sig- most of the original Delphi out of 446-6000 covery, but many auto stocks have Van Buren Township-based Vis- nificant to the automotive market. Chapter 11 bankruptcy in 2009. Cable address: TWX 248-221-5122 AUTNEW DET been underperforming since. teon Corp. is down 22 percent to Whether the public responds favor- “I don’t think Delphi is in that CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly, except for a special issue the Since the GM IPO — which $60.58 since going back on the mar- ably or not is also very important, big of a hurry to go to market, but third week of January, a special issue the fourth raised the automakers more than ket in January. as a failed IPO is sort of pie on face.” if Silverpoint and Elliot are to cap- week of August, and no issue the third week of December by Crain Communications Inc. at 1155 $20 billion — the S&P 500 is up However, some of the largest Livonia-based Tower International italize, that might drive the deal,” Gratiot Ave., Detroit MI 48207-2732. Periodicals 12 percent, but GM is down nearly suppliers are up considerably Inc.’s Oct. 18 IPO was widely consid- he said. “Given the recent data, the postage paid at Detroit, MI and additional mailing 15 percent to $29.19 a share, as of since November — Auburn Hills- ered a near flop, raising less than its market is not exactly conducive to offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, Circulation midday trading Friday. based BorgWarner Inc. is up 19 per- projected $106 million. But its stock getting the maximized value on an Department, P.O. Box 07925, Detroit, MI 48207- Ford Motor Co. is also down cent to $69.41 and Milwaukee- is up 28 percent to $16.73 since. auto stock.” 9732. GST # 136760444. Printed in U.S.A. Entire contents copyright 2011 by Crain 15 percent to $14.14 since Nov. 17. based Johnson Controls Inc. is up Ann Arbor-based Affinia Group Dustin Walsh: (313) 446-6042, Communications Inc. All rights reserved. GM and Ford are largely down due 6 percent to $37.90. Inc., International Automotive Compo- [email protected]. Twitter: Reproduction or use of editorial content in any to rising oil prices, said David Sowerby called Delphi’s stock a nents Group in Southfield and Novi- @dustinpwalsh manner without permission is strictly prohibited. 20110606-NEWS--0022-NAT-CCI-CD_-- 6/3/2011 6:50 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS June 6, 2011 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF MAY 28-JUNE 3

Brunch Factory. “We are succeeds Ida Tomlin, who left Miller Schwartz and Cohn LLP looking to do a similar Jack Kevorkian in December. VanAcker and its vice chairman, Alan thing.” most recently served as gen- S. Schwartz, have reached a Pods, trains The new 135-seat restau- eral manager of the Court- settlement with Schwartz’s rant will include a 15-seat dies at age 83 yard by Marriott in Livonia. former executive assistant, coffee bar in the front, Ⅲ Southfield-based Denso Denise Fitzhenry, over in- couches, lounge chairs and ack Kevorkian, the re- International America Inc. has juries allegedly tied to a re- the future of Wi-Fi access. tired pathologist who promoted Hikaru “Howard” quirement that she wear The seasonal menu will J helped dozens of ailing Sugi to president and CEO. high heels. Terms were not include breakfast frittatas, people commit suicide, ig- Sugi, most recently senior disclosed. waffles, pancakes, omelets niting intense debate and executive director of parent and lunch offerings, includ- ending up in prison for company Denso Corp., will commuting? ing seven or eight sand- murder, died Friday at replace Yoshiki “Steve” OTHER NEWS wiches. Check averages will William Beaumont Hospital in Sekiguchi, who is retiring. Ⅲ Public speaking, con- hat if? position Detroit and GM as be about $8. Royal Oak after a short ill- sulting and running other That’s the ques- centers of innovation. Teknos, one of three own- ness. He was 83. people’s po- W tion General Mo- As a second-generation Kevorkian, who said he COMPANY NEWS ers, will be executive chef. litical cam- tors Co. North America GM exec who grew up in the The Brunch Factory is helped about 130 people end Ⅲ Southfield-based Global paigns are President Mark Reuss asked area, Reuss said he feels a scheduled to be open seven their lives from 1990 to Fleet Sales Inc., aftermarket part of for- at the Detroit Regional Cham- personal responsibility for days a week, 7 a.m. through 1999, had been hospitalized outfitters of customized Ford mer Detroit ber’s Mack- repaying the local support 3 p.m., following a grand since last month with pneu- Motor Co. vehicles for inter- Mayor inac Policy GM received during its opening planned for August. monia and kidney prob- national aid and develop- Kwame Kil- Conference tough times. “I’m tired of lems, said close friend and ment organizations, has a patrick’s last week. being ashamed of where I prominent attorney Mayer $146 million contract to sup- plans when Fancy a game of cricket? Morganroth. Reuss, live,” he said. “It shouldn’t ply nearly 6,000 trucks for he is re- An official cause of death Kilpatrick who is one be that way.” The ninth U.S. Corporate the U.S. Army by late 2012. leased from had not been determined, of the only How to finance the pod pi- Cricket Championship is The company, a division of prison, he told AP in an in- but Morganroth said it Detroiters lot in a cash-strapped city? scheduled for July 23-24 at Thailand-based RMA Automo- terview. They do not in- probably will be pul- at the top of Ross said he had no idea four sites in metro Detroit. tive, was chosen from three clude a return to elected of- monary thrombosis. Reuss GM’s corpo- what it would cost or Teams will participate bidders for a recent contract fice, Kilpatrick said in the rate pyra- whether the feds would from corporations includ- with the U.S. Army Con- phone interview from Cot- mid, proposed making De- come to the party, but GM ing Altair Engineering Inc., ON THE MOVE tracting Command at the ton Correctional Facility in troit the North American would help Detroit figure Blue Cross Blue Shield of Tacom Life Cycle Management Jackson County. pilot site for the automak- out the cost. Michigan, Caterpillar Inc., Ⅲ R. Andrew Hove, a for- Command in Warren. In a separate report, Kil- er’s Electric Networked Ve- Reuss told reporters Fri- Chrysler Group LLC, Ford Mo- mer Michigan-based BAE Ⅲ Downtown Birming- patrick is pushing advance hicle, or EN-V, personal pod day morning that a couple of tor Co., General Motors Co., Systems Inc. executive who ham’s Forte Restaurant copies of his tell-all book transportation system. local leaders — he didn’t Henry Ford Health System and left to become president of closed amid a rent dispute Surrendered! The Rise, Fall GM unveiled its technolo- identify them — already had Compuware Corp. Oshkosh Defense, has left and low traffic. and Revelation of Kwame gy for the Jetsons-like per- told him they want to do it. First-round games and the defense contractor “to Ⅲ Beaumont Health Kilpatrick — for $26.95. sonal pods at a Chinese ex- semifinals will be held in seek other business oppor- System, a three-hospital sys- Ⅲ The annual Little Cae- position. The first EN-V Lyon Oaks Park in Wixom, tunities.” tem based in Royal Oak, sars Pizza Bowl at Ford Field pilot is slated for Shanghai, Downtown breakfast Bloomer Park in Rochester Ⅲ Lt. Col. Norman Mar- has been chosen as one of will be played in the after- which came up with a lot of eatery fills a void Hills, Belle Isle Park in De- shall, long- 14 health care organiza- noon on Dec. 27, the first local support in a country troit and Founders’ Park in time divi- tions nationally — and the time the college football that’s home to days-long A new breakfast eatery is Farmington. A turnout of sional only one in Michigan — to game hasn’t been played the traffic jams. filling the void left in down- 200-500 spectators is expect- commander participate in the High Val- day after Christmas since Reuss proposed to the town Detroit by the closing ed during the finals at of the Salva- ue Healthcare Collabora- 2004, organizers said. The chamber audience that De- of the Detroit Breakfast House 2 p.m. in Bloomer Park. tion Army tive, which seeks to im- switch is to accommodate troit “test and develop” the and Grill. The Michigan Cricket As- Eastern prove quality, lower costs ESPN’s broadcast schedule. small pods along with light The Brunch Factory is Michigan Di- and develop best practices Ⅲ Detroit’s annual three- rail planned for Woodward planned to open in the for- sociation, based in Troy, or- ganizes the annual champi- vision, plans in care. Also, William Beau- day electronic musical fes- Avenue and higher-speed mer Detroit Breakfast to step onship, and Pankaj Mahajan, mont Hospitals in Royal Oak tival saw 99,282 attendees rail between Detroit and House location on the Marshall down at the director of the tournament, has changed the name of its pass through Hart Plaza Chicago. ground floor of the Lofts at end of June. Col. Dennis said teams from well-known parent organization to during the Memorial Day Pods could travel on city Merchants Row on Wood- Strissel, who most recently companies are still wel- Beaumont Health System, weekend, the highest atten- streets and board trains like ward Avenue. was territorial commander come to join. said CEO Gene Michalski. dance since it began charg- a ferry; or, Reuss said, trav- In 2010, its last year of in the African nation of Companies interested in Ⅲ General Motors Co.’s ing people to attend in 2005, elers could hop a train in business, the Detroit Break- Ghana, will succeed Mar- competing can contact Ma- Chevrolet brand has signed organizers said. Detroit and rent a pod in fast House generated about shall. hajan at (248) 802-7088 or on as presenting sponsor of Ⅲ The House has passed a Chicago. $900,000 in sales. In its hey- Ⅲ Skip Simms was pro- Detroit isn’t traffic- day, the restaurant had pankajmahajan@hotmail. the Woodward Dream Cruise bill that could allow Detroit moted to senior vice presi- for the next three years. to continue its 2.5 percent choked like Chinese cities, sales of $1.4 million. com. But this game isn’t dent from vice president at but the EN-Vs could con- “I ate there quite a few only for people with a pass- The value of the sponsor- city income-tax rate for res- Ann Arbor Spark. He will con- ship wasn’t disclosed. ident individuals, a rate nect people with spread-out times on the weekends, and ing interest in the baseball- tinue his role as the non- Ⅲ destinations in the region. I always loved it,” said Tom like game, he said: “They The free glossy fash- that’s higher than allowed profit’s head of entrepre- ion, entertainment and in other Michigan cities, The side benefit would be to Teknos, co-owner of The have to be good.” neurial business lifestyle monthly 944 Mag- AP reported. The bill development. Spark hired azine, which is distributed moves to the Senate. Brittany Affolter-Caine as di- in Detroit, ceased publica- Ⅲ The Henry Ford is rector of talent; Lukas Bon- tion with its June issue. launching a pilot program ner as vice president of to bring to the classroom business development; and the digital interviews it’s Donna Doleman as vice pres- COURTS collecting and lessons it’s BEST FROM THE BLOGS ident of marketing, commu- developing on innovation nications and talent. Af- Ⅲ John Bravata, a Detroit- READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS in an effort to promote 21st folter-Caine formerly was area money manager ar- century skills. It received a an independent nonprofit rested after three months $100,000 gift to fund it from Game-changer for Royal Oak? Unmasking ‘anonymous donor’ consultant; Bonner was for- in Italy, has Meritor Inc. merly the economic devel- been or- ‘Let’s face it, as You tell the world opment manager for Ster- dered to jail far“ as bars and in“ your (news) release ling Heights and a to await tri- restaurants go, Royal that there’s a single OBITUARIES development specialist for al on fraud- Oak is getting a little donor, a billionaire who related Ⅲ Peter Hochstein, stale.’ Not exactly a wants to be the city of Taylor; and Dole- quote you expect to anonymous, you can man operated an Ypsilanti charges, founder of Oxford-based hear from a Royal Oak guarantee he won’t be marketing consulting firm, the Associ- lighting manufacturer Re- City Commissioner. for long. DLA Group LLC, and was di- ated Press- lume Technologies, died May rector of marketing for Pfiz- reported. 27. He was 65. Bravata ” ” er Inc.’s Michigan region. Authorities Ⅲ Rex Holton, founder of Ⅲ The Detroit Zoological say he collected $53 million what became Royal Oak Reporter Nathan Skid’s Detroit-area restaurant blog Reporter Tom Henderson’s blog about accounting, Society has named hospitali- from investors through his Kitchen and Bath, died from can be found at www.crainsdetroit.com/skid banking, venture capital and high tech can be found BBC Equities. complications of cancer at www.crainsdetroit.com/henderson ty industry veteran Gerry VanAcker its new COO. He Ⅲ Detroit-based Honigman May 21. He was 89. DBpageAD.qxp 6/1/2011 12:40 PM Page 1

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1 Benefit is limited to Basic Cardmembers (not Additional Cardmembers) with the Gold, Platinum, or Delta Reserve SkyMiles® Business Credit Cards. Reservation must include the Basic Cardmember’s SkyMiles® number. Fee waiver also available for passengers traveling in the same reservation as the Basic Cardmember. Maximum nine waivers per reservation. New Cardmembers and Cardmembers upgrading from another Delta SkyMiles® Credit Card product will be eligible for the checked baggage fee waiver benefit after receiving their Card from American Express. Benefit available only on Delta and Delta Connection® carrier flight segments. Waiver does not apply to overweight or oversized bags. Additional terms, conditions, and restrictions may apply. See delta.com/firstbagfree for details. 2 20,000 bonus miles awarded within 2–4 weeks of first purchase; 15,000 miles awarded if upgrading from classic Delta SkyMiles Business Credit Card. Additional 2,500 bonus miles awarded for each approved Additional Card submitted with application — up to 5,000 bonus miles. Offer subject to terms, conditions, and restrictions. See MyCardCan.com for details. American Express is the exclusive U.S. Credit Card partner of Delta. © 2010 American Express. All rights reserved. MCC_BBIZ