Compuware Units Predict Growth

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www.crainsdetroit.com Vol. 31, No. 6 FEBRUARY 9 – 15, 2015 $2 a copy; $59 a year

©Entire contents copyright 2015 by Crain Communications Inc. All rights reserved Page 3 Compuware units predict growth Nonprofit offers to help startups become high-fliers Lori Blaker: Strategy: Push mainframes, seed cloud biz LIFE AFTER COMPUWARE: Making a world BY TOM HENDERSON When Compuware, the Detroit- CRAIN’S DETROIT BUSINESS based computer services company, WHATFORMER CEO of difference was bought by Thoma Bravo LLC, a BOB PAUL IS DOING with family biz Chris O’Malley, the president and Chicago-based private equity firm, CEO of Compuware Corp., which was for $2.4 billion in a deal that closed in – AND PLANNING reconfigured as a mainframe-only December, it was quickly split into Inventors make Ernest effort business in December, says he has two companies, which long had been PAGE 26 to revive the typewriter no intention of running a shrinking a goal of former Compuware CEO company. He says that within three Bob Paul. (See accompanying Q&A.) years he will halt a decade-long de- Compuware was founded in 1973 cline in revenue and prove wrong CRAIN’S O’Malley Van Siclen as a mainframe support business, those who say an ongoing slide for but recent acquisitions had made it MICHIGAN BUSINESS the aging computer platform is inevitable. a major player in the a segment known as application John Van Siclen, the president and CEO of Dynatrace performance management, which allows large compa- Kennedy: More LLC, the stand-alone business spun out from Com- nies to monitor in real time the performance of their than Obamacare puware to focus on cutting-edge, cloud-based technolo- various software applications. gies, says his company will beat early expectations, The mainframe business has high margins, but has mandate foe, too, and despite a round of layoffs in January is on a Page 17 fast growth track. See Compuware, Page 26 Second Stage On Feb. 11, 1985, Crain’s reported that Stroh’s Detroit LOOKING BACKDetroitplant was plant likely was to likely be torn to bedown. torn Stroh’s down troublesand razed. Thiswere storyan omen tells ofhow a shift Stroh’s in the troubles beer industry. were representative of a shift in the beer industry. ISTOCK PHOTO 30 YEARS AGO THIS WEEK How 3 startups survived the first 3 months, Page 11 This Just In For Stroh’s, the Bell’s tolled 2 businesses win $100,000 grants in NEI challenge The New Economy Initiative The crumbling of a Detroit institution rang in has announced the two winners of its $100,000 NEIdeas CLICK BACK crainsdetroit.com/30 challenge: Detroit-based J & G the era of craft breweries Pallets and Trucking and High- To read 1985 story: land Park-based Sherwood Pro- BY DUSTIN WALSH Also, look at Page One from Feb. 11, 1985, plus more about our 30th year. totype. The two firms will both CRAIN’S DETROIT BUSINESS receive $100,000 grants to help them grow their businesses. troh Brewery Co. announced 30 years ago it would raze “These are businesses that its 1 million-square-foot brewery, bottling and ware- have wreathed a lot of storms house buildings on Gratiot Avenue at I-75. The late Pe- and have the potential to grow ter Stroh, chairman of the iconic Detroit beer company, quite significantly,” said Dave S Egner, executive director of said no amount of investment could save the brewery in the face NEI. of a declining beer audience — which dropped from 31 million NEI devised NEIdeas last barrels to 24 million barrels annually. year to help small businesses That year, 1985, marked the beginning of the in Detroit, Highland Park and Hamtramck that have been end of Stroh and a culture shift for Michigan beer open at least three years and drinkers as a small-time home brewer took his are looking to grow. The chal- craft legal. lenge was broken into two Larry Bell founded Kalamazoo-based Bell’s Brew- parts: $10,000 grants to 30 ery Inc. the same year Stroh’s was razed and today is firms and $100,000 grants to one of the largest local beer producers — expected to The Stroh Brewery Co. plant along two firms. The program is ex- Gratiot Avenue in Detroit. Today, it’s the site of pected to relaunch this spring. produce 410,000 barrels of craft beer in 2015. Brewery Park, the headquarters of Crain Communications Inc. — Amy Haimerl – and where Crain’s Detroit Business has been written since 2001. Bell See Beer, Page 29 NEWSPAPER 20150209-NEWS--0002-NAT-CCI-CD_-- 2/6/2015 1:57 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS February 9, 2015

MICHIGAN BRIEFS Survey: More small firms leave it ping channels or other repairs, replacement or construction. to workers to buy health coverage State turns on money spigot to end Flint water torture Ⅲ A subsidiary of Grand Rapids- Only 28 percent of small-business based Universal Forest Products Inc. ac- owners who offer employee health The problems for the Flint water system just keep disinfectant byproduct. Flint, formerly a major cus- quired assets of Rapid Wood Mfg. LLC coverage indicated they intend to going drip, drip, drip. … Last week, the Genesee In- tomer of the Detroit Water and Sewerage Department, of Caldwell, Idaho, MiBiz reported. continue those benefits into 2016, ac- termediate School District said it had stopped using severed those ties last year to build a pipe into Lake In January, Universal acquired a cording to a Grand Valley State Univer- city water and was giving bottled water to about Huron, ostensibly to save money. majority stake in Australia’s Integra sity survey that asked how they were 1,300 preschoolers. Until the pipe is ready in 16 months, Flint gets wa- Packaging Proprietary Ltd. reacting to the Affordable Care Act. Also last week, Gov. Rick Snyder and the state ter from the Flint River, which residents say has the Ⅲ Carson Health in Montcalm That move stems in part from the stepped in, pledging $2 million in grants. The money smell, taste and appearance of something that looks County was acquired by Sparrow option available for individuals to will pay for a contractor to perform a leak detection less like water and more like, well. Health of Lansing, Sparrow said in buy coverage through public health survey of city water lines and shut down the Water Last year, a General Motors Co. engine plant a statement. Carson, with 61 beds, exchanges created under Oba- Pollution Control Facility incinerator, replacing it stopped using water from the Flint River after the had been an affiliate of the Spar- macare, MiBiz reported. with facilities allowing for waste disposal in land- automaker said it caused rusting on its engine row system since 1997. The results confirm much of fills, The Associated Press reported. parts. Ⅲ The Daily News in New York what insurance carriers have seen Flint’s emergency manager, Jerry Ambrose, said The decision is expected to cost the city about City reports that Dow Chemical Co. and heard from small employers, the financial relief also will free money to acceler- $400,000 per year in lost revenue. Chairman and CEO Andrew Liv- said Scott Norman, vice president ate the replacement of major pipelines, which he “The water today is within all acceptable guide- eris bought a condominium in Man- of sales and client services at Priori- said will increase water circulation and improve lines — and that’s an improvement over where it hattan’s Chelsea neighborhood for ty Health, which sponsored the quality. was a couple months ago,” Ambrose said. “That $10.75 million. The 2,500-square-foot GVSU survey. The results also In January, Flint’s system was in violation of the says the water is safe. It doesn’t say the quality is abode on the 17th floor has three point to the expected rise of the in- Safe Drinking Water Act because of high levels of a acceptable, and that’s not acceptable to us.” bedrooms, “sweeping views of Mid- dividual market. town ... and 12-foot ceilings.” It is said that his neighbors include ac- The de-malling strategy effective- will not cut back on its expansion Ⅲ The U.S. Army Corps of Engineers tress Cameron Diaz. How can you save a mall? Some ly breathed new life into Grand plans or workforce despite an will spend an additional $12 million developers turn to ‘de-malling’ Rapids’ Centerpointe Mall, now about 8 percent decline in sales last year. this year on improvements to the Find business news from 98 percent occupied, according to Amway attributed the decline to a Great Lakes navigational system, around the state at crainsdetroit Despite numerous headlines Colliers International. The de-malling strong U.S. dollar and lower sales The Associated Press reported. The .com/crainsmichiganbusiness. touting the death of the American of Centerpointe has inspired devel- in China, the Ada-based compa- additional money allocated to the Sign up for the Crain’s Michi- shopping mall, West Michigan de- opers to do a similar project at an- ny’s largest market. Detroit district will pay for eight gan Morning e-newsletter at velopers have avoided an untimely other mall that has fallen on hard Ⅲ The latest quarterly survey of projects involving dredging of ship- crainsdetroit.com/emailsignup. demise. One key has been a push times in recent years: Holland’s office furniture executives by to effectively “de-mall” the sprawl- Westshore Mall on U.S. 31. Michael A. Dunlap & Associates found ing shopping complexes where the industry “very steady” heading CORRECTION stores are connected via interior MICH-CELLANEOUS in the new year. “We are confident corridors. Instead, they’re rear- that the industry is still on course to Ⅲ The cost of Oakland University’s Executive MBA, health care leader- ranging the traditional shopping Ⅲ Amway Corp. President Doug achieve its best year in more than a ship emphasis, is $42,500. An incorrect price was published in a list of malls so that the stores are only ac- DeVos told The Grand Rapids decade,” said Michael Dunlap, head selected area leadership programs in the Feb. 2 edition. cessible from outside entrances. Press that the direct-sales giant of the Holland consultancy.

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February 9, 2015 CRAIN’S DETROIT BUSINESS Page 3 Nonprofit’s goal: Help firms rocket Inside

ing, mentoring cess to investors to more than com- Endeavor starts affiliate to and inspiring panies. the next genera- It has shied away from the Unit- tion of local ed States because the support for boost Detroit entrepreneurs high-impact en- entrepreneurs is strong here, but trepreneurs.” Endeavor realized that a few U.S. BY AMY HAIMERL firms that are on the cusp of extra- Historically, cities face similar challenges to CRAIN’S DETROIT BUSINESS ordinary growth. the New York those entrepreneurs in emerging “The entrepreneurial talent in City-based orga- markets. So, in 2013, it opened a Help is coming for Detroit’s Detroit and the broader region is nization has Miami affiliate and now will make high-growth, high-impact entre- impressive,” said Endeavor co- worked in glob- Egner Detroit its second U.S. location. preneurs, whether they are in founder and CEO Linda Rotten- al emerging Endeavor made its way to De- technology or the trades. berg. “We’re excited to support markets, such as Chile, Mexico, troit through Dave Egner and the Celebrating a Soup that’s fed The global nonprofit Endeavor is these companies to scale, stay and Saudi Arabia and South Africa, launching an affiliate here to help multiply their impact by invest- bringing mentoring, talent and ac- See Endeavor Page 27 many a small biz, Page 10

Company index These companies have significant mention in this Making a world week’s Crain’s Detroit Business: Accountable Care Organization ...... 7 Active Solutions Group ...... 16 Atwater Brewing ...... 29 Autocam Medical ...... 17 of difference Autoliv ...... 21 Belfor Holdings ...... 21 If you were family ... he felt he was Bell’s Brewery ...... 1 TTI boss Blaker providing us with an opportunity Compuware ...... 1, 26 to work, and we should be happy Cooper-Standard Automotive ...... 21 with that.” Detroit Fiber Works ...... 11, 12 went global with But Blaker pushed for more. Detroit Regional Chamber ...... 17 And today, under her leadership, Detroit Soup ...... 10 the company now known as TTi Domino’s Pizza ...... 21 business, causes Global has grown to $110 million in Dow Corning ...... 21 revenue and has established a Dynatrace ...... 1 BY SHERRI WELCH presence in 25 countries. Edward Rose & Sons ...... 17 CRAIN’S DETROIT BUSINESS The obstacles Blaker, 57, had to Endeavor ...... 3 overcome along the way — includ- Federal-Mogul ...... 21 In the early 1990s, Lori Blaker ing sexism, divorce and the chal- Hello West Michigan ...... 20 was a divisional president at her lenges of balancing motherhood Inteva Products ...... 21 parents’ technical manual and with the company’s top job — to- ITC Holdings ...... 6 training company, working with day drive her efforts to help other Kelly Services ...... 21 Ford Motor Co. to train automotive women achieve success. Metaldyne ...... 21 electronic control technicians. She is active on the speaker cir- Mich. Center for Empowerment & Econ. Development 11 She was also a hostess at the cuit and spends time mentoring Michigan Charitable Gaming Association ...... 4 Palace of Auburn Hills’ Palace young women in metro Detroit. Michigan Gaming Control Board ...... 4 Grille. She’s also working to empower Michigan Office Systems ...... 17 A single mother with three chil- women internationally by sharing Miller, Canfield, Paddock and Stone ...... 29 dren, Blaker needed the second job her story and creating vocational MSX International ...... 21, 28 to make her house payment and programs to aid budding female New Economy Initiative ...... 27 keep shoes on her sons’ feet. entrepreneurs. Northern United Brewing ...... 29 “I was probably one of the But it all took root in the family Oakwood ACO ...... 7 worst-paid employees because I business. JOHN SOBCZAK Owens Family Foods ...... 11, 12 was family,” she said. Lori Blaker was the first employee of the company launched by her parents, but SkySpecs ...... 11, 14 “My dad was kind of old school. See Blaker, Page 28 had to prove to her father she was tough enough to be in charge. Southeast Michigan Accountable Care ...... 7 Strategic Staffing Solutions ...... 27, 28 Stroh Brewery ...... 1 TTi Global ...... 3 TRW Automotive Holdings ...... 21 “There is nothing to writing. All you do is Vistage Michigan ...... 16 Visteon ...... 21 sit down at a typewriter and bleed.” WADL TV-38 ...... 4 The Hemingwrite: To have electric and have not the Internet. — Ernest Hemingway

Y ILL HEA pair created a modern portable electric COURTESY OF B B S HEMINGWRITE CRAIN’S DETROIT BUSINESS typewriter/word processor hybrid last fall that employs an e-ink screen (instead of Department index Ernest Hemingway once said, “There is paper or traditional LED display) on a de- Inventors no rule on how to write. Sometimes it vice that doesn’t allow the user to indulge BANKRUPTCIES ...... 4 comes easily and perfectly; sometimes it’s in the attention-gobbling distraction of In- BUSINESS DIARY ...... 24 like drilling rock and then blasting it out ternet browsing or social media. CALENDAR ...... 23 with charges.” In other words, no Trivia Crack, Face- CLASSIFIED ADS ...... 25 offer an Ernest effort However inspiration comes, Detroit- book or kitten videos. KEITH CRAIN...... 8 based inventors Adam Leeb and Patrick Enough writers are captivated by the Paul are banking that enough writers single-function Hemingwrite that they’ve MARY KRAMER ...... 17 want both nostalgia and a distraction-free pledged more than $342,000 in 45 days to OPINION ...... 8 to make keyboarding writing tool that they’ve created: the a now-closed Kickstarter fundraising cam- OTHER VOICES ...... 9 Hemingwrite. paign with an original goal of $250,000. Employing the name of the grandfather PEOPLE ...... 24 more like writing of 20th century American literature, the See Hemingwrite, Page 25 RUMBLINGS ...... 30 STAGE TWO STRATEGIES ...... 16 WEEK ON THE WEB ...... 30 Smile and say “Cheese” ... everyone THIS WEEK @ Have a scene from your city? Share it with @crainsdetroit on Instagram. We’re always WWW.CRAINSDETROIT.COM looking for photos to share on crainsdetroit.com 20150209-NEWS--0004-NAT-CCI-CD_-- 2/6/2015 4:37 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS February 9, 2015 Court date set in battle over state gaming rules

BY SHERRI WELCH aire parties since last July. that can take place at a location, CRAIN’S DETROIT BUSINESS Those rules are enabling charity among other regulations. poker games to continue, albeit at The new rules — both emer- Oral arguments are set for a reduced rate, said Rick Kalm, ex- gency and proposed — are decreas- March 3 in a Michigan Gaming Con- ecutive director of the gaming con- ing charities’ ability to raise mon- trol Board appeal that will attempt trol board. ey through the games, said Jean to reinstate millionaire party rules Since July, the board has issued Kordenbrock, manager of the introduced last year. more than 1,000 millionaire party Michigan Charitable Gaming As- The case is the latest in nearly a licenses to charities, each license sociation. year and a half of legislative wran- good for up to four consecutive Charities are having a tough gling between the state board and days, he said. And it’s approved 25 time finding a spot to host a four- the Michigan Charitable Gaming As- new bar/restaurant locations as day event, especially on the west sociation over tighter regulation of sites charities can rent for the side of the state, Kordenbrock the charity poker games. games, adding to 40 other locations said. The Michigan Court of Claims last approved prior to 2011 and the Permanent poker rooms are an summer enjoined the new rules, charities’ option to use their own, important factor in helping chari- determining that the gaming con- private facility. ties — especially those from small trol board should have gone back Those approvals follow the clo- towns with limited populations — through the entire rule-making sure of 23 or more permanent pok- attract people to charity poker process after changes were made er rooms around the state that games, she said. following legislative and public were operating unlawfully, ac- Sherri Welch: (313) 446-1694, hearings. cording to the state board, and a [email protected]. Twitter: !30!24.%23 9/5'%44/&/#53/. Emergency rules have been in reduction in the number of games @sherriwelch "5),$).'9/52"53).%33 place to govern ongoing million- 7(),%7%&/#53/.&).!.#).')4 FCC significantly boosts opening bid for Adell TV station

The Federal Communications Com- mission has significantly increased its expected opening bid for local broadcaster Kevin Adell’s WADL TV-38 in Clinton Township to a maximum of $380 million with a median price of $360 million. That’s up from a possible $170 Increase your cash flow and pursue million last year. bigger opportunities with our customized, The revised estimate comes flexible lending solutions. from a new report on behalf of the FCC by investment firm Greenhill & s!2&INANCING (248) 658-1100 Co. LLC. s,INESOF#REDIT www.hitachibusinessfinance.com The FCC in early 2016 will auction portions of the 600-MHz UHF over-the-air broadcast spectrum from TV stations to mobile wireless providers that need more air- waves bandwidth . Adell will continue to own The Word Network, the Southfield-based Christian television programming satellite network that is a separate company. — Bill Shea

BANKRUPTCIES The following businesses filed for protection in U.S. Bankruptcy Court in De- Call Joe Haney troit Jan. 30-Feb. 5. Under Chapter 11, President-Principal a company files for reorganization. Certiﬁed Risk Architect Chapter 7 involves total liquidation. Al Huda Properties LLC, 4640 Nutmeg Drive, Ypsilanti; voluntary Chapter 11. Assets, $906,500; liabilities, $67,300. Al-Hafiz LLC, 4640 Nutmeg Drive, Ypsi- lanti; voluntary Chapter 11. Assets, $2,003,000; liabilities, $164,054. QSC-Novi LLC, 174 Ridge Road, Grosse Pointe Farms; voluntary Chapter 7. It’s time to rethink your insurance strategy Assets, $13,000; liabilities, $37,500 Town Center Flats LLC, 45343 Market 888.525.7575 | 586.323.5700 | sterlingagency.com St., Shelby Township; voluntary Chapter 11. Assets and liabilities not available. Sterling Insurance Group is a Michigan based company. — Chad Halcom DBpageAD_DBpageAD.qxd 2/6/2015 9:40 AM Page 1

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Page 6 February 9, 2015 THE MILLER LAW FIRM Changing the Odds in our Clients’ Favor ITC to expand grid, remakes executive team

BY JAY GREENE CRAIN’S DETROIT BUSINESS

Novi-based ITC Holdings Corp. (NYSE:ITC), the nation’s largest independent electricity transmission company, has reorganized its executive ranks to support expected increased investment in electric grid development activities. To prepare for nearly $4.5 billion in capital spending from 2014 to 2018, outlined in its five-year investment plan, ITC CEO Joseph Welch announced the following: Linda Blair, executive vice president and chief business unit officer, will be responsible for leading all aspects of the financial and operational performance of The Miller Law Firm is Recognized ITC’s four regulated operating companies. She also will become president of ITC Transmission and as a Leader in Complex Business Litigation Michigan Electric Transmission Co. businesses. Gregory Ioanidis, to vice presi- Q Q Automotive supplier counseling Commercial and business lawsuits dent of business unit finance and rates for the four regulated operat- Q Employment litigation Q Shareholder and partnership disputes ing companies, from president of ITC Michigan. Referral fees honored on contingency fee cases Daniel Oginsky, to executive 950 West University Drive, Suite 300 vice president of U.S. regulated grid development, from executive Rochester, Michigan 48307 248-841-2200 millerlawpc.com vice president and general counsel. Kristine Schmidt, to vice president of regulated grid development, from president of ITC Great Plains. Terry Harvill, to vice president of international and merchant de- Our relationship with velopment, from vice president of grid development. Brian Slocum, to vice president our clients is always of operations, from vice president of engineering. Joe Bennett, to vice president of engineering, from director, fa- In Bloom cilities, safety and security. Gretchen Holloway, to vice president of finance, from director, fi- At ShindelRock, we know that a great client nance, special projects and in- relationship takes time to grow. That’s why vestor relations. Christine Mason Soneral, to vice we offer the services and expertise, like president and general counsel, year-round tax planning, to help take a from vice president and general counsel for utility operations. Metro Detroit business like Wesley Berry Simon Whitelocke, to vice presi- Flowers from seedling to spectacular. dent and chief compliance officer, from vice president, external and regulatory affairs. “In the 20 years we’ve been a client, Nina Plaushin, to vice president of regulatory and federal affairs and Maria and her team have been as will assume additional responsibili- passionate about growing my ty for regulatory issues. She had been vice president, federal affairs. business as I have been. They’re Kevin Burke, vice president of human resources, will assume ad- always there when we need them.” ditional responsibility for marketing and communications. ~Wesley Berry ITC was born in February 2003 when a group of New York-based private equity investors acquired DTE Energy’s transmission subsidiary in Michigan for $621 million. Contact for Inquiries Through those subsidiaries, ITC owns and operates high-voltage Maria Montie, CPA, MST, CVA, CFFA transmission facilities in Michi- Managing Partner gan, Iowa, Minnesota, Illinois, Wesley Berry, President Maria Montie, Managing Partner Missouri, Kansas and Oklahoma. www.ShindelRock.com | 248.855.8833 It serves a combined peak load ex- ceeding 26,000 megawatts along 28100 Cabot Drive Ste. 102 | Novi, MI 48377 15,000 circuit miles of transmission line. 20150209-NEWS--0007-NAT-CCI-CD_-- 2/6/2015 1:57 PM Page 1

February 9, 2015 CRAIN’S DETROIT BUSINESS Page 7 ACOs saving millions under Medicare’s cost-cutting program

BY JAY GREENE One of metro Detroit’s newest with Medicare. Isenstein said the biggest area of physician services, home health, CRAIN’S DETROIT BUSINESS ACOs, The Accountable Care Organiza- So far, 243 ACOs saved Medicare savings for the Oakwood ACO nursing home and durable medical tion Ltd. (TACO), based in Farming- $877 million during an 18-month come through reduced hospitaliza- equipment, some ACOs contract or Many of the 15 accountable care ton Hills, also is saving Medicare period ending in 2013 and re- tions, reduced readmissions, fewer affiliate with organizations in Michigan are sav- money, but officials for the ACO couped $460 million for their hos- emergency visits and lower high- post-acute care ing millions of dollars for the said it is too early to predict finan- pitals and doctors, according to technology diagnostic tests for its providers. For Medicare program along with cial numbers for 2014, the physi- documents provided by the Centers 14,000 Medicare patients. example, TACO passing along significant financial cian-led organization’s first year. for Medicare and Medicaid Services. On the other side, Isenstein said, has a contract rewards to hundreds of participat- Other ACOs operating in Michi- While financial savings for 2014 the biggest area of lost revenue with Center ing physicians, according to sever- gan include the Genesys Physician haven’t been released, ACO sav- comes from patients choosing to Line-based Bin- al local ACO executives. Hospital Organization, Accountable ings appear to be ahead of projec- see physicians not part of Oak- son’s Hospital Sup- Under Medicare’s ACO cost con- Healthcare Alliance PC, St. John Provi- tions. In 2012, Medicare projected wood ACO and going out of the plies Inc. for tainment program — begun as dence Partners in Care and Physician $1 billion in savings for the first Oakwood post-acute care network. home medical three-year pilot projects outlined Organization of Michigan ACO. three years of the program and up “Hopefully our doctors do a good Margolis and respiratory in the Affordable Care Act of 2010 Tony Vespa, SEMAC’s executive to $5 billion through 2019. job at stressing the importance of equipment. — groups of hospitals, physicians director, said the shared-savings But ACO executives like Bill continuity of care, but the model Participating in TACO are 25 and other providers band together ACO ranked No. 4 in the nation in Isenstein, Oakwood ACO’s execu- we set up allows patients to go else- hospitals that are part of McLaren to coordinate care for seniors en- performance, saving $24.6 million tive director and COO, said second where for care,” Isenstein said. Health Care Corp., St. John Providence rolled in traditional Medicare. for Medicare from July 2012 and third year contract savings Medicare also is adding dozens Health System, Beaumont Health Sys- If they generate sufficient sav- through the end of 2013. may be lower than the first year be- of new ACOs, including several in tem and DMC. ings and hit predetermined quali- Ranked ahead of SEMAC were cause ACOs must hit predeter- Southeast Michigan. Nationally, Of TACO’s shared savings ty targets in their second contract Memorial Hermann ACO in Texas, mined quality targets to be eligible. there are more than 40 ACOs cov- share, 50 percent go to physicians year, the ACOs split the savings Palm Beach ACO in Florida and Still, quality also appears to be ering 7.2 million of 50 million based on volume and quality mea- with Medicare. Catholic Medical Partners in New on the increase for the Medicare Medicare beneficiaries. surements, 30 percent for share- In Southeast Michigan, for ex- York, Vespa said. patients. Over- In 2013, Jeffrey Margolis, M.D., holders, 10 percent for ACO leader- ample, Dearborn-based Oakwood “Our organization shared $12.1 all, ACO perfor- president of The Accountable Care ship and 10 percent is kept for ACO LLC saved Medicare $17 mil- million. There were a lot of happy mance on quali- Organization, said physicians, pri- infrastructure, capital reserves, lion and kept $8.4 million during doctors here who got their checks ty improved for marily affiliated with Michigan information technology and pa- its first 18-month period from July before Christmas,” said Vespa, 28 of 33 mea- Healthcare Professionals PC, formed tient education. 2012 to December 2013. United Out- noting that the 149 participating sures, including the ACO to coordinate care for Of the $8.4 million in shared sav- standing Physicians’ Southeast Michi- doctors were rewarded based on depression some 28,000 Medicare patients in ings for the Oakwood ACO, Isen- gan Accountable Care (SEMAC), number of patients, utilization, screening, med- their care and to reduce costs for stein said the 450 participating also based in Dearborn, saved $24.6 quality and ownership shares. ication reconcil- the Medicare program. physicians, including about 140 million and kept $12.1 million dur- Vespa said that through the iation, colorec- “So far The Accountable Care primary care doctors, split about ing the same period. third quarter of 2014 SEMAC is on Isenstein tal cancer Organization’s program seems to 80 percent with the higher per- Detroit Medical Center’s Michigan track to save about $16.4 million screening and be a success,” said Margolis, who forming doctors receiving larger Pioneer ACO, saved $14 million and for the second year. normalizing blood-sugar levels. also is president of Michigan shares. kept $6 million. Pioneer is on track Under the Medicare ACO pro- For example, data from Oakwood Healthcare Professionals. Jay Greene: (313) 446-0325, to generate similar savings in 2014, gram, ACOs that cut expenses by showed its ACO scored above aver- Because ACOs are rewarded for [email protected]. Twitter: officials said. at least 2 percent share savings age on 18 of 33 measures. lowering costs on hospital care, @jaybgreene

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Page 8 CRAIN’S DETROIT BUSINESS February 9, 2015 OPINION Walker puts face on area transit needs or years, public transit advocates have tried to find a champion to expand transit options in Southeast Michi- F gan to at least match other metro areas. But finding a “name” that resonates regionally rather than one of the five counties was hard. Until now. The Detroit Free Press profile of Detroiter James Robertson and his 21-mile walk to work in Rochester Hills has gone viral. Robertson’s face — and his work ethic and resilience — resonate with thousands of people — enough to have raised more than $300,000 in a crowd-funding page aimed at helping him buy a car, insurance and gasoline. Suburban Ford of Ster- ling Heights has given him a 2015 Ford Focus. But Robertson himself has said that he wishes the region simply had better transit. Rochester Hills, where his employer is based, opted out of suburban bus service, the kind of service that would have at least allowed him to cut down on the miles walked. But a more integrated city-suburb transit system is needed. Southeast Michigan’s nascent Regional Transit Authority will seek voter approval of some type of dedicated tax to expand transit — without communities being able to opt out. The RTA should get to know Mr. Robertson. He knows how to tell a story. TALK ON THE WEB From www.crainsdetroit.com Innovation comes in all sizes Re: Patterson proposes property tax in an instant. Reader responses to stories and BobNB Everything old is new again, as many have written. cut in Oakland County blogs that appeared on Crain’s website. Comments may be As Bill Shea reports on Page 3, a couple of Detroit-based in- The intentions are good and it edited for length and clarity. Re: Jeb Bush touts conservative ventors have mounted a successful Kickstarter campaign to plays well with hard-core Republi- cans. But I think most people policies to aid middle class, business build, well, a typewriter. politicians and council members. would much rather have the money It’s actually more sophisticated than Many of us in the private sector If the GOP wants to win in ’16, spent on the roads. that, an electric typewriter/word proces- would be lucky to get any pension. they had better get someone else be- Rock & Roll 35 sides the current clown car of sor hybrid called the Hemingwrite that Especially these days. Kaos Rex dummies they’re trotting out. uses an e-ink screen. Its most important Re: Ally seeks riskier borrowers as new They have zero chance. Apparent- asset? An aid to concentration in the CEO takes helm of auto lender Re: Gilbert, others eye city-owned sites ly they have learned nothing in the form of no Internet access. last eight years. Also looking to innovate an old tech- These companies seem to forget in Brush Park, Midtown, riverfront Trexinmichigan what got us in the position we Would be glad if Gilbert inter- The Hemingwritenology is Chris O’Malley, CEO of Com- were in just over six years ago. puware Corp., which post-acquisition is only in the business of The problem once again is greed to vened. There is so much well-locat- Re: Nexteer eyes bigger brand with HQ mainframes. As Tom Henderson reports in a Page 1 story, to drive the sales engine of lending. ed land that is completely empty. It move to Southeast Michigan We will never learn! needs a quality, rapid redevelopment. that end, the company has developed a product — the first new There are some lovely buildings Nexteer already has an office in jk6590 Troy from where a couple of execu- one for the company since 1999 — to help younger IT managers along John R, but I personally tives work. Although it’s a great understand what mainframes do and work with them. wouldn’t want to be surrounded by company to work for, they have Re: Pension cuts, interest paybacks from blocks of urban prairie. If a lot of Our takeaway is that these stories are a good reminder that been having a hard time recruit- bankruptcy prompt cries of betrayal quality mixed-use developments innovation comes in a number of forms, some of it disruptive ing engineers as it’s located in Sag- go in quickly, however, the look, and some of it involving legacy businesses and technologies. This is the price government inaw. So, I can understand the un- the safety and the appeal of the A good thought for old-line media companies as well. employees pay when corruption runs rampant in Detroit. Thank your neighborhood would turn around See Talk, Page 9 KEITH CRAIN: At least we know that action is coming Warren Evans, our newly elected payers and the resi- very good financial offi- is going to have to put into place a he is only cleaning up his predeces- executive of Wayne County, is try- dents of Wayne County cers, and I hope the ré- lot of the fiscal restraint. sor’s messes. Any pain and distrust ing to be as transparent as possible. before Robert Ficano sumés come to him to Certainly, the partially finished should be directed at decades of The county is in terrible finan- left office after badly give him some choices. county jail is a testimony to the in- malfeasance of his predecessors, not cial shape. The scope of the fiscal losing his re-election That’s going to be a key competence of the county and its the current administration. woes was sadly kept from the resi- campaign. spot in his newly elect- contractors. Everyone connected There is a lot to be done in Wayne dents of Southeastern Michigan by There should be a re- ed office. with that project had to know how County. Perhaps the lessons from the previous executive for years. quirement for an inde- Sadly, it would ap- misdirected it was and fiscally ir- the bankruptcy of Detroit will give There are massive shortfalls in pendent audit of these pear that Evans is going responsible. the new administration a road map terms of revenue and expenses. municipal governments to have to apply the Now Evans, right out of the box, for what has to be done. Evans realizes that to avoid anoth- on an annual basis. This tough medicine that the has to come up with a solution that It will not be a pretty picture for er bankruptcy, the county is going audit would be a means county has avoided all is bound to displease everyone. a while. Let’s hope that Evans has to have to take some draconian for representing the tax- these years. It would ap- The tough decisions because of the fortitude to stay the course. measures immediately before it payers of these government bodies. pear that the county has been liv- the budget crisis might alienate lots Any deviation will have disastrous runs out of money this summer. The results must be made public, ing way beyond its means and of people — from the unions to con- results for the county, Detroit and It is too bad that this financial not just given to the elected officials. stealing from Peter to pay Paul. tractors to employees to taxpayers. all of Southeastern Michigan. news wasn’t available to the tax- Evans is going to need some Now, our newly elected executive I only hope we all remember that We wish him well. 20150209-NEWS--0008,0009-NAT-CCI-CD_-- 2/6/2015 11:39 AM Page 2

February 9, 2015 CRAIN’S DETROIT BUSINESS Page 9 OTHER VOICES: Biz-community college ties need to grow

President Barack Oba- firsthand the importance internationally. students across the country to nerships between businesses and ma’s recent proposal to pro- of establishing collabora- On community college campus- reach toward their educational community colleges as we work vide students with free tu- tive relationships be- es nationwide, students are taking dreams in an environment that collaboratively toward a shared ition to local community tween community col- classes across a broad spectrum of will not leave them saddled with goal of economic vitality. colleges underscores the im- leges and the businesses programs giving them the in-de- unimaginable debt. Data from a re- All of this reinforces why Obama portant role our institu- and industries that sur- mand skills for professions such as port released by the American As- felt so strongly about the economic tions play in the education round our campuses. We radiology, welding, information sociation of Community Colleges stimulus provided by community and training of today’s are doing a much better technology, advanced manufactur- titled “Where Value Meets Values: colleges. Talented workers are our workforce and that of the fu- job of listening to what ing, facilities and energy manage- The Economic Impact of Commu- most important resource. I encour- ture. the workforce demands ment, computer systems, nursing, nity Colleges” shows that for every age all business leaders to make im- A competitive business are today. sustainable building practices, $1 a student spends on a communi- portant connections with a local environment demands em- Rose Bellanca We take what we hear and surgical technology. ty college education, he or she sees community college to learn how fu- ployees and workers to be highly and translate it into curricula that The skilled trades gap is a na- a return on investment of $3.80. ture partnerships can mean greater trained and engaged from the very is relevant and gives our students tional challenge. A 21st century I agree with Gov. Rick Snyder productivity and enhanced business first day of employment. Commu- competitive advantages in the job requires knowledge and train- that Michigan can lead the nation success. nity colleges, through active part- workplace, allowing them to make ing — and it must be affordable. in developing an educated and Rose Bellanca is president of nerships with business, provide seamless transitions to careers That’s where the community col- skilled workforce. We are on the Washtenaw Community College in specialized training in focused in- across our state, the country and leges play a crucial role: enabling right track with innovative part- Ann Arbor. dustries, small-business assistance, career centers and continuing education for workforce development. According to a recent report by the Georgetown University Center on Education and the Workforce, economists project that by 2020, 65 percent of jobs will require some form of postsecondary education and training. At federal and state levels, leaders have taken strong stances to emphasize that community college curricula needs to better align with the demands of the 21st century workforce, particularly in the skilled trades and in-demand industries of information technology, advanced manufactur- WE BELIEVE ing and science, technology, engineering and math professions. In my role as chairwoman of the Region 9 Talent Council, which is part of the state of Michigan’s Re- PERSONAL ATTENTION gional Prosperity Initiative — I see IS BEST GIVEN IN PERSON.

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Re: Bracelets from crime scene bullet casings support gun buyback efforts More profiteering from crime doesn’t seem like the best idea to me. Hey, check out my new bracelet, it was used to kill four people. Isn’t it Eric W. Dietz cool? No, not really. E Stone E Senior Vice President and Regional Manager Private Client Group Re: Duggan gets high marks in Year 1; Huntington National Bank challenges turn complex Having lived across from De- troit in Windsor for 20 years and 220 Park Street then in Bay City for another 28 years, traveling through Detroit Birmingham, MI 48009 for most of that time, I can see the 248.637.8206 phone positive changes in the last year. So many positive comments coming 248.824.4441 cell out of the city and those who visit. [email protected] Hope is alive in Detroit. Mayor Duggan has started a fire, and it is contagious. I believe it started with Dan Gilbert seeing potential in a city that most had given up on. I believe one man can make a change, just as Martin Luther HUNTINGTON PRIVATE CLIENT GROUP King Jr. did. Mayor Duggan is a The Huntington Private Client Group is a team of professionals that includes Private Bankers and Personal Trust Administrators and Portfolio Managers from The Huntington no-nonsense, positive and for- National Bank and licensed investment representatives of The Huntington Investment Company, who work together to deliver a full range of wealth and financial services. ward-thinking person with the de- Member FDIC. ®, and Huntington® and Listen, Plan, Advise® are federally registered service marks of Huntington Bancshares Incorporated. Huntington® Welcome.™ termination to see things through. is a service mark of Huntington Bancshares Incorporated. ©2014 Huntington Bancshares Incorporated. I am betting on him doing what others have said is impossible. Don Davis 20150209-NEWS--0010-NAT-CCI-CD_-- 2/6/2015 11:58 AM Page 1

Page 10 CRAIN’S DETROIT BUSINESS February 9, 2015 Fundraising party to celebrate 5 years of Detroit Soup pitch sessions

BY AMY HAIMERL their start pitching at community uals about what they would like to people that help make it happen CRAIN’S DETROIT BUSINESS fundraising sessions hosted by De- accomplish in their neighbor- every month, I really wanted to troit Soup. hoods. At the end, the attendees raise awareness of our impact. Some of the brightest names in Soup is the I.R.L. (that’s “in real vote on the winner. That project Our hope is that the community Detroit small business have one life”) Kickstarter: People come to- gets the kitty plus a matching with whom we’ve built Soup will thing in common: Detroit Soup. gether once a month to crowdfund grant from Detroit Soup. turn out to learn about what we do, The Empowerment Plan, Rebel Nell, an idea. Participants pay $5 to “Detroit Soup was the catalyst to hear first-hand from winners Sit on It Detroit, Shakespeare in De- share bowls of potluck soup — or for really launching us,” said Amy about exactly how we make an im- troit, Fresh Cut Flowers and Always whatever volunteers bring — and Peterson, co-founder of Rebel Nell, pact and yes, I’ll say it — to donate Brewing Detroit, among others, got then listen to pitches from individ- which hires disadvantaged women to the cause.” to make jewelry from graffiti that Kaherl herself is now looking has flaked off Detroit walls. “We ahead to the next five years of were really fortunate to win and Soup. She would like to have an ecstatic for the financial support. PHOTO COURTESY OF SOUP event running in every City Coun- Amy Kaherl is Detroit Soup’s co- But it was so much more than that. founder and executive director. cil district. She is also heading to It was the validation from every- Nepal next month with the BBC to body who believed in us and the she’s also a DJ — they are hosting start a soup in Katmandu, and support from our community. a giant fundraising party to cele- then to SXSW (South by Southwest) That was really rewarding.” brate on Feb. 15 at Ford Field. The in Austin, Texas, with ad agency The first session was held above evening will feature dinner, danc- Team Detroit to host one at the mu- a bakery in Southwest Detroit, ing, live performances by Flint sic festival. She is also considering with “whiskey and potato leek Eastwood and Detroit Pistons DJ licensing the Soup name to others soup,” said Amy Kaherl, Detroit Emily Thornhill and past Soup seeking to start something in their Soup co-founder and executive di- winners, such as Rebel Nell’s Pe- cities. rector, laughing. “There weren’t terson and The Empowerment “I helped a friend in L.A. do a We are pleased to welcome even any pitches. We had doors on Plan founder Veronika Scott, two fundraiser, and I watched people milk crates.” of Detroit’s most famous social en- do a live auction and give $2,000, But there was an idea that De- trepreneurs. Empowerment hires $3,000, $5,000 — just open their Elizabeth S. Ottaway, CFP troit residents could come together previously homeless women to checkbooks — and I don’t live in and support their neighborhoods make sleeping bag coats for home- that world,” Kaherl said. “We real- for the small price of $5. less people ly want to be a resource in the fu- as an Executive Director of our Firm Now the group is celebrating “Everybody said ‘no’ to Veroni- ture to help other communities five years, 95 dinners and more ka, thought she was crazy, until like ours start up a soup. Not just a than $85,000 doled out to 108 pro- she came to Soup,” Kaherl said. one- or two-time thing, but some- jects. It’s also raised $300,000 in Tickets to the Soup event are thing sustainable.” 63 Kercheval Avenue, Suite 222, Grosse Pointe Farms, MI 48236 p.313.882.7100 grants that allows it to match the $25, or $125 for a VIP ticket that For tickets to the fundraiser or pointecapital.com dollars raised at each soup, fund grants entry to a private reception. to donate, visit detroitsoup.com. the organization and pay neigh- “We have had an incredible five Amy Haimerl: (313) 446-0416, borhood leaders to host soups. years at Soup,” Kaherl said. “Be- [email protected]. Twitter: So in classic Kaherl style — yond just wanting to celebrate the @haimerlad 20150209-NEWS--0011-NAT-CCI-CD_-- 2/6/2015 11:21 AM Page 1

February 9, 2015 CRAIN’S DETROIT BUSINESS Page 11

‘30 DAYS MEANS 30 DAYS’ How one company got its customers to pay up promptly, Page 16

growing small businesses

EDITOR’S NOTEBOOK

Amy Haimerl is entrepreneurship editor and covers the city of Detroit. She can be reached at (313) 446-0416 or at [email protected]

Amy Haimerl A good week for entrepreneurs

It’s Detroit Entrepreneur Week! And it’s legit. In the past, I’ve found celebrating entrepreneurs for one week a year much like celebrating moms on one day each May or black history in February. It seems like we should be doing more to bake appreciation and respect into all 365 days. But this year’s program, organized by the Michigan Center for Empowerment and Economic Development, has a schedule to reinvigorate firms that have been around for at least two years and inspire those who aspire to entrepreneurship. “We are committed to rebuilding Detroit neighborhoods, and Detroit Entrepreneur Week is a great start. LARRY PEPLIN We are excited to be involved and look Najma Wilson (left) and Mandisa Smith found a storefront along Livernois Avenue in an area once known as the Avenue of Fashion — seemingly a good spot for forward to connecting entrepreneurs Detroit Fiber Works LLC. They signed the lease Jan. 1, 2014 — just in time for the polar vortex. So much for foot traffic in the first two months of business. to local resources,” said Robin Kinnie, communications manager for MICEED. The program is from 9 a.m. to noon Feb. 10-14 at Focus: Hope Center for Advanced Technologies, 1400 Oakman Blvd. Plus, there is a Small Business Legal Academy being held at Wayne State University Law School on Saturday, Feb. 14. (Disclose: I’ll be hosting a panel on legal aspects of Startup diaries sales and marketing at the academy.) Here is the schedule of events: Tuesday: Building for business growth, moderated by Jill Ford, special adviser/entrepreneurship for Detroit Three businesses reveal secrets of the early months Mayor Mike Duggan. Presenters include Build Institute, ProperUS Detroit, BY GARY ANGLEBRANDT store for newbie business owners? Michigan SBDC and TechTown Detroit. SPECIAL TO CRAIN’S DETROIT BUSINESS This month we asked three businesses that opened within Wednesday: Building food entrepreneurs, hosted by Food Lab hey say the first year or two of running a business the past two years to share their stories about grinding Detroit. is always the riskiest for a startup. through the early months. Thursday: Entrepreneurship and From funding to paying rent to marketing, the Here is how three companies adjusted to changing condi- neighborhood sustainability, hosted by early years amount to an education earned on the fly. tions, abandoned original plans, made the most out of little TechTown and Detroit Future City with a T number of neighborhood associations. But what’s it really like? What surprises are in and, above all, hustled. Friday: Two panels, one on sales and marketing and one on different approaches to lending. Saturday: Small Business Legal Academy, featuring “ask a lawyer” Detroit Fiber Works LLC Owens Family Foods LLC SkySpecs Inc. sessions with attorneys from some of Owners: Scott and Suzi Owens CEO: Daniel Ellis; CFO: Tom Brady the region’s most prominent firms. Owners: Mandisa Smith “We’re proud to support the growth and Najma Wilson I would cold call. I’d walk in You think a lawyer’s a and development of new, local “ “ businesses in Detroit because it is our We thought, ‘People love us; and say, ‘Can I talk to a lawyer and an accountant’s an hometown, and because we believe “ manager?’ It seems silly now, accountant. That’s 100 percent this is a great time for entrepreneurs to it’s going to work.’ Then get involved in building the city’s but it worked. not the case. You have to find prosperity,” said Rod Blake, director of January comes and nobody real estate and development at event ” one that specializes in startups sponsor Olympia Development of comes in here. and what you do. Michigan. ” To register for entrepreneur week, ” visit dew15.eventbrite.com. PAGE 12 PAGE 12 PAGE 14 20150209-NEWS--0012,0013,0014,0015-NAT-CCI-CD_-- 2/6/2015 10:37 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS February 9, 2015 Second Stage Detroit Fiber Works LLC legal issues with other entrepre- 57th Annual neurs who were at the same stage. Opened: 2013 In October, John S. and James L. Location: Detroit Knight Foundation awarded Detroit Detroit Fiber a Detroit Knight Arts Chal- omething unexpected al- lenge matching grant of $20,000. The ways happens when starting money is to go toward building an Sa business. For Mandisa art installation using fiber art tech- Boat Show Smith and Najma Wilson, it was niques on the median on Livernois. the weather. Shinola invited Detroit Fiber The owners of retailer Detroit Fiber Works to participate in a pop-up February 14-22, 2015 • Cobo Center Works signed a lease on Livernois event last month, giving the busi- Avenue, in the strip north Seven ness another marketing boost. Mile Road once known as the Av- The combined efforts were in- enue of Fashion, on Jan. 1, 2014 — valuable, Smith said, especially in just in time for the polar vortex. Few providing support and structure in ,·Ye Gone Pore buVineVV on Py boat than in Py oIÀFe souls walked through the doors dur- the early months. ing the first two months of business. The most difficult part of run- “We had no idea. We thought, ning a small business has been the Find the boat of your dreams and enjoy a well deserved ‘People love us; it’s going to work.’ general uncertainty. Smith has an taste of summer in the middle of Michigan’s winter. Then January comes and nobody MBA and spent most of her career comes in here. We end the month working in marketing and dealer • It’s Back & Bigger with More Boats and More Fun with $500 in sales, and rent is a lot support for Chrysler, so retail is a • The best Prices, Selection & Time to Buy more than that,” Smith said. new experience. They managed to work through “That’s the worst part, not know- ‘RAIL JAM’ Wakeboard Demos those dark days and turned a corner ing how your month is going to go,” in March. It helped that Smith and she said. FREE Ofﬁcial Boaters Safety Course, Saturday, Wilson were frugal in launching “The reality is, the business their business. Rather than taking does become your life. I’m always February 21. Register Early — Space is Limited! out a bank loan, they spent about here. If I’m not here, I’m doing $7,000 out of pocket to get the doors something related to the busi- No better time to buy a boat! Get full value on your open. Plus, they had a fair amount ness,” she added. trade-in with Michigan’s new Sales Tax on the Difference. RAIL JAM! of goods to sell, and artists supply That fact sometimes is lost on new inventory on consignment, family and friends, too, who might which relieves upfront costs. think that the endeavor is just for The two originally planned to fun and that the owners, as their DetroitBoatShow.net open an artist cooperative but ad- own bosses, have a wide open justed their model after realizing all schedule. Wilson was expected to be ® of their time would be eaten up try- available for her grandchildren all ing to manage everyone in the co-op. the time, and Smith had to show her Detroit Fiber Works also benefit- husband she really meant business. ed from a slew of initiatives “My husband thought it was a launched to support Detroit entre- hobby at first. As time goes on, he preneurs. Key assistance came sees I’m really serious about this,” from Revolve Detroit, a program run Smith said. “People now are gener- by the Detroit Economic Growth Corp. ally on board that this is a busi- with the goal of sparking new retail ness and it takes time.” business in the city. Detroit Fiber scratched out a Revolve created a pop-up district profit in 2014, and this past Janu- on Livernois, funding the build-out ary was far better than that of 2014, of storefronts and negotiating with giving them high expectations for landlords for rent breaks during this year. But it’s still too soon for that time. It selected Detroit Fiber Smith and Wilson to start paying to participate in the program, themselves a salary. charging Wilson and Smith 10 per- One question hanging in the air cent of sales as rent plus utilities. It is the direction of the Livernois was successful enough that Wilson strip. Will it see the same success as and Smith decided to make their other Detroit neighborhoods, like store permanent — and Revolve Midtown and Corktown? News sto- pitched in a $1,000 startup grant. ries in 2013 pointed at early signs of “I tell people all time, if there a revival, and some new shops have were no Revolve Detroit, there’d be joined Detroit Fiber — at least five, no Detroit Fiber Works,” Smith by Smith’s count — in the two said. blocks around her business. She also received entrepreneur- “Midtown was not an overnight ial training through the Detroit success. It was decades in the plan- Build Institute (formerly D:hive) pro- ning. I’m hoping that it doesn’t gram, learning about business take a decade for Livernois to be- plans, accounting, marketing and come what it can be,” Smith said.

Owens Family Foods LLC 401(k)s and formed Owens Family Engineering/ Foods LLC, which makes “Scotty Business Computers Education Health Human Technology Services Opened: 2013 O’Hotty” brand hot sauces. They started by hustling sauces Location: Dearborn out of their car, taking samples to n 2011, Scott Owens went with grocery stores. “TO FIND QUALIFIED EMPLOYEES, I RELY ON his wife, Suzi, to a bank seeking “I would cold call. I’d walk in Ia loan to start a business mak- and say, ‘Can I talk to a manager?’ BAKER COLLEGE.” ing hot sauce. It seems silly now, but it worked,” said Scott, who is president of the “They basically laughed at us,” company. said Scott Owens. “The bank said, They got the sauces into 100 ‘We can’t even give you a $10,000 stores, Westborn Market and Hiller’s loan.’ ” .com Markets stores among them. Ready. Trained. Hire. Owens had been laid off from the But the Owens laid the founda- auto industry in 2008, and the fami- tion for several years before they ly’s Dearborn home was underwa- walked into those stores. They ter after a third of his neighbors spent two years methodically re- walked away from their mortgages. The service is free—the result is just the person you’re looking for. searching, getting food processing But he and Suzi didn’t put their FIND THE RIGHT CANDIDATE FOR THE JOB AT HIREQUALIFIED.COM licenses and trademarks, building a 6486HQ idea for a food business on the shelf. Instead, they cashed out their See Next Page 20150209-NEWS--0012,0013,0014,0015-NAT-CCI-CD_-- 2/6/2015 10:37 AM Page 2

February 9, 2015 CRAIN’S DETROIT BUSINESS Page 13 Second Stage

From Previous Page hit as many events as possible, an av- website and perfecting the recipes. erage of three or “If I was going to do this, it had four a month last to be all or nothing. Nobody in my year. Sometimes family ever did anything like this. it’s a farmers mar- They all punched a clock,” Scott ket, other times it’s Owens said. “I figured, if I’m going a beer fest in Royal to do this, I’m not just going to go Oak, a trade show in and skip down a path.” in New York, the Suzi Owens attended a two-day Stars & Stripes Fes- Michigan State University Product tival in Sterling Center program on food entrepre- Heights or the Buy neurship, where she learned about Michigan Now Fest Food and Drug Administration rules, in Northville. bottling and manufacturing, pH Vendor booths testing, food safety and licensing. run anywhere “We were a little naive when we from $300 to $1,000 jumped into it. We didn’t realize the at these shows. rules and regulations,” she said. Sometimes these The MSU Product Center also events span sever- holds an annual Making It In al days. Long or Michigan conference where food short, the events entrepreneurs connect with ex- COURTESY OF OWENS FAMILY FOODS mean lugging a perts and buyers. The Owens have When Scott and Suzi Owens went to a bank to obtain a tent, money box, picked up valuable contacts loan to start their hot sauce business, “they basically product — the en- through the event and learned how laughed at us,” Scott said. “The bank said, ‘We can’t tire booth — to source bulk ingredients. For even give you a $10,000 loan.’ ” around and finding their first few product runs, the a baby sitter for the Owens paid retail prices at a tance of margins in the food busi- Owens’ two children. Kroger store, Suzi said. ness. It’s not enough to only build The events have been a primary The $50,000 to $60,000 price tag to in a profit margin to the retail cost source of education, though, as launch the business was covered of the product, but also to work in food entrepreneurs share tips and by the 401(k) money. Scott’s par- enough cushion to absorb the costs knowledge. Suzi called it “word-of- ents contributed to the purchase of of brokers and distributors. mouth learning.” a bottling machine (and have since Labor costs also have eaten up “We snuggled up to some of the been paid back). more money than expected. That is other made-in-Michigan compa- The Owens spent another the second biggest expense, after the nies,” she said. $25,000 to get the business up and cost of produce — peppers, tomatoes Owens Family Foods plans to running after launch, mostly to and onions. Then come the costs of hire more people this year, includ- buy machinery and graphics ser- bottles, spices and labels. ing a full-time accountant. For now, vices using money that came from The Owens of course don’t have the company uses a family member sales. Scott kept those expenses a big budget for advertising, so low by buying equipment on eBay. their marketing plan has been to See Owens, Page 14 He waits for good deals to pop up rather than waiting until he needs something at the last minute, and is gathering the equipment ahead of setting up a commercial kitchen in his own building when the time is right. After launching the business, he learned he was better off without a Uncovering your future building (and he couldn’t afford one anyway without that bank loan). There was no way he’d sell Opportunities await. We can help identify them. enough sauce right away to cover overhead and costs to keep the building humming. With increasing growth in key industries, Michigan is back in business. “I was looking at small build- And this could mean big business for you — but only if you can ings that cost $1,200 to $2,200 a month — and we’d still have to successfully leverage key opportunities. convert it — and we weren’t making that a month,” he said. Instead, they began using the Rehmann’s team of experienced consultants can help. If you’re ready services of The Culinary Studio LLC for growth throughout 2015 and beyond, contact us today. in Southfield, where food entrepreneurs can rent commercial kitchen time for prototypes and small production runs. It wasn’t until last year that the Owens really felt they had the business up and running. Suzi quit her day job as a dental assistant. After making a first hire, a rela- tive, at the end of 2013, they added six more in 2014, bringing the total to seven part-time workers. Last summer, Jack Aronson of Ferndale-based Garden Fresh Salsa Sandy Gohlke, CPA, CGMA Co. Inc., well-known in the local Principal food world for his support of entrepreneurs, began advising the 248.458.7940 Owens, who rent time at his facili- [email protected] ties when they have bigger product runs. Without Culinary Studio and Aronson, Scotty O’Hotty sauces wouldn’t have been possible, as it saved them “a ton of money” on overhead and insurance, Scott Detroit, Ann Arbor, Farmington Hills, Troy said. rehmann.com | 866.799.9580 The Owens also are continually learning more about the impor- 20150209-NEWS--0012,0013,0014,0015-NAT-CCI-CD_-- 2/6/2015 10:37 AM Page 3

Page 14 CRAIN’S DETROIT BUSINESS February 9, 2015 Second Stage Owens: ‘We were so wet behind the ears’ ■ From Page 13 who happens to be a CPA but is in first step. The company’s first few been akin to making 10 products, Florida. The Owens, who haven’t years were spent honing its prod- requiring even more capital. taken a paycheck out of the busi- uct and chasing money, whether at This decision was made just last ness, also want to hire someone to business plan competitions or June — two years after the company manage the kitchen full time and from investors. launched — when the company saw some marketing staff. Scott still SkySpecs raised $595,000 in seed that the drone industry had works as a mechanical engineer in funding, plus grants and prizes from changed. Many of the commercial- the aerospace industry. student business plan competitions, grade parts that go into drones were They expect a distribution deal including $10,000 from the Accelerate readily available, whereas a few this year to lead to big growth and Michigan Innovation Competition in short years earlier they hadn’t been. plan to invest in marketing, the 2012. It won $50,000 at the Michigan But the biggest expense is the company’s website and apparel. Clean Energy Venture Challenge in cost to develop the product. The company also is part of Forgot- February 2013. In November, “Staff for us is ten Harvest’s program to co-brand SkySpecs won the $500,000 first prize the clear leader food products in exchange for li- in the main portion of the Accelerate in terms of spend- censing fees that will raise money Michigan Innovation Competition. ing money. for the charity. So what has it done with all that About three- In retrospect, the Owens said money it raised? About 80 percent fourths to 80 per- they’re glad the bank declined to has gone toward people and recent of our give them a loan early on. The search and development. monthly burn company has zero debt now and It has taken time to home in on goes to develop- can take money from sales and im- what the product and market will ers and the rest of mediately put it back into the busi- be. Initially, SkySpecs planned to Brady the team,” said ness. make a complete drone, including a CFO Tom Brady. “We were so wet behind the carbon fiber frame and flight con- SkySpecs also has extracted mar- ears, we would have gotten too far troller. It’s since decided to limit its keting juice from Techstars, a lead- in before our revenue was where it scope to sensors and software. ing startup accelerator that recent- needed to be,” Scott said. The money raised gave the com- ly opened a Detroit program The Owens have not tried to ask pany time to make this adjust- banks for any expansion loans just ment. The first plan would have See Next Page yet, but Scott expects to seek a loan when it comes time to purchase a building and consolidate operations. He’s waiting until they’re turning over at least 1,500 cases of hot sauce a month, a goal he hopes to hit this year. They’re doing between 250 and 350 cases a month now. The economy feels strong to the Owens, who just bought a brand- new truck and see people forking over $5.99 for a bottle of locally made hot sauce. But they haven’t yet checked with any banks to get a sense of how they’d fare if they tried to get a loan. “I’m in no hurry to go into a bunch of debt. But to go to the next step where want to be, we’re going to have to,” Scott said.

SkySpecs Inc. Opened: 2012 Location: Ann Arbor

enture-backed tech startups do things a little differently Vthan businesses that sell artsy goods and food products — they get their money first and then hope to get customers. Ann Arbor-based SkySpecs Inc. has raised $1.35 million in funding from business plan competitions, grants and venture backing, while still in what’s known in the tech startup world as a “pre-revenue” state of existence. The company, started by four Uni- versity of Michigan engineering students, makes control systems that automatically prevent commercial drones from crashing into things. The person holding the controller doesn’t have to worry about hitting a bridge or a person. But these startups hardly have it easy. They slog through early years developing often-complicated technology and spending just as much time chasing money. It’s a drawn- out, gambling lead-up to one day having sales that reward the effort. SkySpecs launched on paper in 2012, but that was just one small 20150209-NEWS--0012,0013,0014,0015-NAT-CCI-CD_-- 2/6/2015 10:37 AM Page 4

February 9, 2015 Page 15 Second Stage Invest Wisely Choose an Advisor Who Sees the Bigger Picture From Previous Page

focused on mobility. SkySpecs, WORLD CLASS MONEY MANAGERS | TRANSPARENT FEES INDEPENDENT ACTIVE TAX LOSS HARVESTING | ADVANCED TAX PLANNING however, was accepted into the New York program and has been operating from there since October. As an Independent Registered Investment Advisor, Schechter is freed from the constraints and economic pressure many advisors The company is used to the no- face at large brokerage firms. We have no one telling us to “sell” a specific fund or proprietary product. Come discover the madic life, first operating out of the UM incubator TechArb for six independent difference, where our clients get our best advice, solutions, and products no matter what.Trusted for 75 years. months, then out of a rented ware- house that was little more than a garage near Zingerman’s Deli for about a year, before taking up temporary residence at Techstars. At another point, they were shown a storefront for use as a possible home. “We laughed. It was next to a mas- sage parlor,” said Danny Ellis, CEO of Sky- Specs. Drones are louder than people think, and there’d be inces- sant testing go- Bernie Kent, JD, CPA, PFS | Jason Zimmerman, MBA, CLU, CAP | Marc Schechter, CLU | John Stein, MBA, CFA | Brad Feldman, JD, CLU ing on. “The Ilana Liss | Jeff Vieder | Aaron Hodari | Jordan Smith, JD, LLM | Paul Snider | Chris Hale | Kevin Beauchamp | Larry Leib, JD neighbors are not going to like Ellis that.” With so much pressure to raise funding and build a product, some of the basics have gotten over- Contact a Schechter Expert to learn more about how an Independent advisor can make a difference: WWW.SCHECHTERWEALTH.COM looked and become headaches. The Call 1.866.731.9500 or email [email protected] BIRMINGHAM, MI | NEW YORK, NY entrepreneurs didn’t think at all about payroll taxes, for example, until tax time reminded them and Securities may be offered through NFP Advisor Services, LLC (NFPAS), Member FINRA/SIPC. Investment Advisory Services may be offered through NFPAS or Schechter Investment Advisors, LLC. Schechter Investment Advisors, LLC. is not affiliated with NFPAS. NFPAS does not provide legal or tax advice and is not a Certified Public Accounting firm. SIA is an SEC registered investment adviser; please consult the Firm’s Form ADV disclosure documents, available on the SEC’s Investment Adviser Public they had a big bill. Disclosure website. “Payroll taxes are no fun. As a newbie business owner, I feel sheep- ish to say I didn’t know the company’s part of the taxes,” Brady said. Getting lawyers and accountants has proved less straightforward. “You think a lawyer’s a lawyer and an accountant’s an accountant. That’s 100 percent not the case. You have to find one that specializes in startups and what you do,” Brady said. They went through two lawyers before finding one they liked. “We had not raised money yet, thank- fully,” Brady said. “You don’t want to be switching lawyers in the middle of a fundraising.” As with choosing a bank, choos- Helping entrepreneurs and ing a lawyer and an accountant required a long look at the company’s growing businesses in Michigan. plans. They wanted professional ser-

vices that were close to home and carried a personal connection, while fabricators

artisans

also being able to scale for growth. erectors We committed $1 million in free legal services “It’s not always the best idea to go advocates with the option that is cheapest or to help entrepreneurs and growing businesses. most available,” Brady said. architects educators

SkySpecs has eight full-time em- Over 130 clients have received legal services

ployees and has relied on its own network to find talent. The first idealists through MiSpringboard since June 2011.

hires that the owners didn’t already leaders know came to them through recom- makers defenders

scientists We are working with 35 partner organizations mendations from their circles. “We don’t look at résumés. It’s craftspersons who refer clients. personal recommendations fol- * *

lowed by time,” Ellis said. MiSpringboard clients are from 50 cities across Ellis expects to double the staff constructors inventors

size by the end of the year. Proto- physicians Michigan. counselors

type sales are planned for April, and innovatorsoriginators regular sales in the third quarter. pioneers As MiSpringboard enters its fourth year, the Another round of funding will be launched this year as well, and the trailblazers vibrancy, energy and potential we see in company should be settled into a visionaries Michigan appears unlimited. permanent base in Ann Arbor founders soon. It also is considering a sec- ondary space in downtown Detroit. specialists designers Ellis feels the economy moving in producers the right direction on the sales and fundraising fronts. More investors jumped into the game last year, dreamers making it easier to raise money. www.mispringboard.com “Even if it’s not directed at us, we’ve seen a lot more friends get access to capital in 2014 compared to 2012,” he said. 20150209-NEWS--0016-NAT-CCI-CD_-- 2/6/2015 10:34 AM Page 1

Page 16 CRAIN’S DETROIT BUSINESS February 9, 2015 Second Stage Pressing for payment ‘worth the squeeze’ for Active Solutions

BY GARY ANGLEBRANDT Accounting turned into more of a “We’re seeing companies spend Reminding SPECIAL TO CRAIN’S DETROIT BUSINESS ACTIVE SOLUTIONS GROUP INC. proper department, as any large money like crazy,” Kadaf said in late payers that company would have. It pressed December. they’re dealing At the start of 2014, 30 percent of Location: Dearborn customers, politely but firmly. It be- Expert opinion: A company should with businesses Active Solutions Group’s receivables Description: Supplier of voice-over- came a firewall between the head of never worry about appearing weak with the same were outstanding. “Another 30 to Internet phone systems as a service the company and overdue clients for demanding its money, said pressures, as 60 days and we would have went President: Frank Kadaf who wanted to bend Kadaf’s ear. Richard Beadle, founder and co- Active did, is a under,” said President Frank Employees: 10 “They always want to talk to me, owner of Vistage Michigan, a peer-to- smart tactic. Kadaf, calling it the “Battle of Ac- Revenue: $1.15 million in 2014 not accounting, so they can give peer business coaching organization Beadle also rec- counts Receivable.” Problem: Figuring out how to deal me a story,” Kadaf said. in St. Clair Shores. At 30 percent of ommended set- Active Solu- with slow-paying clients Sob stories were treated in-kind. revenue outstanding, Active had Beadle ting up terms tions, like Accounting was told to explain practically turned itself into a bank. where a third is paid up front, a many growing STAGE 2 Solution: Kadaf went to his ac- that Active was under duress, too, third at some midpoint of the pro- companies, Owners don’t have to be aggres- counting head and said it was time with employees to take care of and ject and the rest upon completion. STRATEGIES had expanded sive, but they should be assertive. to lay down the law. a chief not taking a paycheck. That way, the company always has significantly, “It’s not about, ‘I’m a weak soul, I A look at “We had to “The people on other end also “feeder money to get work done but its collec- need to ask for money.’ This is about problem-solving reach out to cus- are business owners; they under- running a business,” he said. and not have to go to a bank itself.” by growing tions system tomers who stand the pain. They pay more at- companies remained the were 30 days- tention and (are) more inclined to same. “I was- plus and get pay than just blow you off. It never n’t accustomed to having to handle them to pay worked to go at them with a hard that much in receivables,” Kadaf without upset- attitude,” Kadaf said. CRAIN’S SEEKS NOMINATIONS FOR 20 IN THEIR 20S said. “We’d been nonchalant about ting them,” The company got better results collecting. As long as we had a Kadaf said. from pressing right away and now Do you know a 20-something who is someone to watch? Crain’s 20 in their steady stream, we were good.” “Thirty days 20s recognition program seeks young professionals who are making their has a policy to never let receivables marks in the region. But without money for equip- means 30 days. go beyond 10 percent of revenue. Kadaf Candidates are not limited to any particular field or activity but include up- ment, Active Solutions couldn’t We added a late Active “took in a ton of money” supply new systems to customers, and-comers who are making waves as young professionals within a fee, which we never used to do. We in the first 45 days of this new direc- company, have shown success or originality as entrepreneurs, or have many of whom were in the middle sent a letter to everybody, saying tion, with a big chunk coming in made local impacts in some other demonstrable way. of tight schedules for moving their you have X number of days to pay.” the first two weeks. Active ate some Besides the corporate world, candidates are considered from creative offices or setting up new locations. The fee was the greater of 5 per- credit card fees, but as Kadaf said, industries, nonprofits and social entrepreneurship arenas. Active needed its clients to pay. cent or $25, compounding every 30 “the juice is worth the squeeze.” Winners will be profiled in the June 1 edition and honored at a future Making that happen, however, days. For companies owing $20,000, If Active hadn’t done this, it awards event. is a delicate balance. A small busi- that $25 turned into a more moti- might have missed out on the rest Nominees must be 29 or younger before June 1. Nominations are due Feb. 13. ness can’t go scorched-earth on its vating $1,000 base fee. of 2014, which turned out to be a To fill out the form, visit www.crainsdetroit.com/nominate. clients, but it also can’t go bank- Advance warning was given boom year as companies reinvest- Questions? Contact Amy Haimerl at [email protected] or (313) 446-0416. rupt waiting for payments. first, which prevented backlash. ed in infrastructure.

Keep your business heading in the right direction.

Treasury Management from FirstMerit Bank When John talked to FirstMerit Bank’s Treasury Management team, his goal was to increase his company’s working capital. Together, they came up with a plan to help John effectively manage receivables, control payments, and improve his company’s overall cash ﬂow. Now John has all the tools he needs to keep his business moving in the right direction — forward.

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February 9, 2015 CRAIN’S DETROIT BUSINESS Page 17

PUBLISHER’S NOTEBOOK

Contact Mary Kramer at mkramer @crain.com. CRAIN’S MICHIGAN BUSINESS Mary Kramer Narrative Autocam founder John Kennedy has navigated risks and rewards, about the D highs and lows — and a bit of controversy takes a U-turn When Grand Rapids-based Michigan Office Systems decided to open its eighth Michigan office, it considered Troy. The ‘quintessential But at the eleventh hour, MOS President Ralph Slider opted for downtown Detroit. Detroit? The decision reflects the changing “vibe” in the city. The office opens entrepreneur’ this month in 1001 Woodward Ave., facing Campus Martius Park. BY TED ROELOFS “We’ll be the only SPECIAL TO CRAIN’S MICHIGAN BUSINESS (office product) lunging down a twisting French mountain Slider manufacturer with an office in Detroit,” Slider said, road on a hot afternoon in 2006, John referencing Xerox’s ownership of MOS. Kennedy was determined to catch the cy- clist just ahead of him. For Slider, the new office is a P chance to sell copiers, office The last thing the West Michigan business own- technology and services to the er recalls is the sight of a large commercial van growing company base downtown. headed his way as he rounded a hairpin turn. For the city, it’s another example of “I think I made the mistake of braking, the changing Detroit narrative — from straight-lined and went right into it,” Kennedy downtrodden decay to Comeback Kid. recalled while sitting in the Kentwood office of Warren Rose experienced that Autocam Medical. With his recent $300 million change in the narrative when he sale of Autocam Corp. to Tennessee-based NN Inc., attended the National Multifamily the manufacturer of precision medical instru- Housing Council annual meeting last ments and devices occupies most of his energy as month in Palm Springs, Calif. CEO. Rose is CEO of family-owned Edward Kennedy would later learn he had broken his Rose & Sons, which has developed, humerus, clavicle, scapula and all of his ribs and owns and manages 60,000 apartment suffered a collapsed lung. units in 15 states from its Six months later, he was back on the bike, a mo- headquarters in Bloomfield Hills. ment he never doubted would arrive. Rose is used to seeing his home “I think I have this optimism that nothing is ever state in an underdog role. So he was going to put me down for long,” Kennedy said. surprised that the conference His response to that event more than eight included a two-hour general session years in the past says as much about this devout called “Reimagining Detroit” — Catholic as his business track record, his commit- featuring Daryl Carter, a Detroit native who chairs the housing trade group; ment to workforce training or even his well-publi- Jonathan Holtzman, who has revived cized — and eventually successful — legal chal- two flagging apartment buildings in lenge to the Affordable Care Act’s mandate that downtown Detroit; and Gina Metrakas, employers provide birth control coverage to em- a former federal housing official who ployees. now leads urban revitalization for Dan Gilbert’s Rock Ventures LLC. “It was a complete 180, from decay A career of twists, turns to ‘you’ve got to be a fool not to be in Kennedy, 56, recalled just how much of a calcu- Detroit,’ ” marveled Rose. lated risk it was to buy Autocam Corp., a sub- Detroit Regional Chamber CEO sidiary of Autodie Corp., in 1988. He put about $1.3 Sandy Baruah sees the same kind of million of his own money, earned in real estate in- “flip” in the Detroit narrative locally. vestments, against a debt of about $14 million. At The chamber’s fourth annual the time, the company, which made parts for fuel Detroit Policy Conference on Feb. 26 injection systems, had just one customer. offers a crash course on opportunities “I do remember harrowing times, days of angst in the city. Keynote speakers include about the hill you had to climb,” he said. “I re- Mayor Mike Duggan and Peter member thinking: ‘I’m 29 years old. If I lose all Kageyama, author of For the Love of this, I could start over and do it all again.’ ” Cities, and panels on education, entrepreneurship, neighborhood Birgit Klohs, president and CEO of The Right revitalization and whether the “two” Place Inc., a West Michigan economic develop- Detroits — divided by race, income or ment organization, has known Kennedy since the tenure in the city — can be united. early days at Autocam. Klohs calls him “the quin- A big difference over four years, tessential entrepreneur and innovator.” Baruah said, is that traditional Kennedy, she said, is blessed with acute finan- business and civic groups are cial instincts along with a knack for anticipating embracing the idea of making a industry trends before others do. difference in neighborhoods, not just She also credits him with taking a lead role in downtown and Midtown. West Michigan in promoting workforce talent de- JON BROUWER For information on the conference, velopment. John Kennedy made news for his court fight against the Affordable Care Act’s mandate for birth visit detroitchamber.com/dpc. control coverage. But before that, he built a business, sold it, bought it back and survived a bicycle See Kennedy, Page 18 crash. He’s now back in the saddle and hopes to build Autocam Medical into a $200 million business. 20150209-NEWS--0018,0019-NAT-CCI-CD_-- 2/6/2015 10:47 AM Page 1

Page 18 CRAIN’S DETROIT BUSINESS February 9, 2015 CRAIN’S MICHIGAN BUSINESS

Reliable, modernized grid

Energy is essential to the way we live, work and play.

ITC operates, builds and maintains the region’s electric transmission infrastructure. We’re a Michigan- PHOTOS BY JON BROUWER based company working hard to improve electric With the sale last year of Autocam Corp., John Kennedy reliability and increase electric transmission capacity turned his entrepreneurial throughout the Midwest. energies to Autocam Medical, where employees craft medical tools in a plant in Kentwood, near Grand Rapids (above). The exacting work requires the use of a microscope to check We’re ITC – your energy superhighway. products before they go out the door (left).

Kennedy: ‘A risk taker’ www.itctransco.com ■ From Page 17 In 2012, Autocam established the to stay at a company two years af- Advanced Manufacturing Pro- ter they complete the program to gram in collaboration with Grand have their full education paid. Rapids Community College and other Autocam Medical is joining the manufacturers to maintain a better program this fall. pipeline of manufacturing talent. “We don’t retain them all,” Applicants accepted into the pro- Kennedy said. “But the ones we do gram start at $13 an hour while work their butts off for us.” they attend classes for a two-year But beyond all that, Klohs points program paid in full by the compa- to one central quality that she sees ny, now called the Autocam Precision as key to the Kennedy code: “He is Components Group of NN. an optimist with tenacity and a lot Upon completing school and 8,000 of guts. He is a risk taker.” hours on the job, machinists earn at least $17.50 an hour at a plant where the average annual income for an Detroit roots hourly worker exceeds $50,000. Au- Growing up in suburban Detroit, tocam also picks up the tab if the that’s hardly how Kennedy viewed worker wants to earn a four-year de- himself. He describes himself as an 2015 gree in fields such as engineering. “above average” student — first at The Advanced Manufacturing Austin Catholic Preparatory High Program class that enrolled in the School in Detroit before it closed, fall of 2014 has 19 students, includ- then at Grosse Pointe North High ing six from Autocam. School, where he earned a scholar- In Southeast Michigan, in the ship to the University of Detroit. Michigan Advanced Technician Training Kennedy and his wife, Nancy, program, employers pay tuition for who have four children, met at UD, three years for employees, who ro- a Catholic institution, where both tate between work and earning an earned accounting degrees. Ken- advanced associate degree. Gov. nedy served in student government Rick Snyder cites the program, com- and ran cross-country and track. He ® Excel Downloads - Only $249 monly know as MAT2, as another worked part-time jobs to pay his solution to the skilled-worker gap. way through school and stayed at Kent County resident Madalyn home to save on room and board. • More than 1,000 high-quality Bueche, 21, hired in at Autocam in He graduated in three years in 2012 and simultaneously enrolled in 1979 at the age of 20, was hired as business development leads the GRCC Advanced Manufactur- an accountant for Deloitte LLP in ing Program. She graduated in 2014 Detroit and later transferred to the • Titles include CEO, Owner, President, and is now enrolled at Ferris State firm’s Grand Rapids office. He lat- University in Big Rapids, intent on er joined Autodie, a tool and die Chairman, CFO, COO, CIO, HR, earning a four-year degree in engi- manufacturer, where he was CFO. Marketing, Vice President and more! neering in three years while work- Having lived on both sides of the ing as a machinist full time at Auto- state, Kennedy has been frank cam Precision Components. The about the differences he perceives • Includes names and titles company pays for her education. between metro Detroit and West not published in print “It’s pretty awesome,” Bueche Michigan. said. “I’m going to go as far as I can He considered buying plants in go.” Southeast Michigan but told • Generate sales contacts Klohs said Kennedy was creat- Crain’s in 2011 that he decided ing such opportunities for workers against it “because the productivi- and mailing lists long before other employers. ty wasn’t there. I think Detroit has “It’s a passion of his,” she said. more of an entitlement culture in Kennedy thinks it’s the right the workforce generally, union or thing to do, both for the workers nonunion.” DOWNLOAD NOW! Crainsdetroit.com/lists the program trains and for the company. Graduates are required See Next Page 20150209-NEWS--0018,0019-NAT-CCI-CD_-- 2/6/2015 10:47 AM Page 2

February 9, 2015 CRAIN’S DETROIT BUSINESS Page 19 CRAIN’S MICHIGAN BUSINESS

From Previous Page in federal court and said he would dential campaign, Kennedy bris- risk-taking that builds a nation. reach $100 million this year. drop the suit on behalf of Autocam tled at the assertion by President “In my mind, he’s sending the “I think we are in position to be By the 1990s, as he built Auto- Corp. with its purchase by NN. Barack Obama that success be- worst possible message to a young a $200 million business five years cam, Kennedy had made the tran- Then last month, Kennedy won longed not to the individual but to person,” Kennedy said. from now,” said Kennedy, whose sition from distance runner to cy- the suit on behalf of Autocam Med- collective effort: “If you’ve got a oldest son, John, is a product man- clist. He was riding more than a ical. Judge Robert Jonker of U.S. Dis- business — you didn’t build that. ager at Autocam Medical. hundred miles a week and joined a trict Court reversed himself after the Somebody else made that happen.” Building again West Michigan cycling club. Kennedy is still cycling, return- U.S. Supreme Court ruled in 2014 that In a column for MLive, referring The NN deal allowed Kennedy to ing to France in the summer of 2013. Which is how, in July 2006, he craft firm Hobby Lobby did not have to to the launch of Autocam Corp., concentrate on building Autocam He recalled that he and his broth- found himself along the side of the furnish such coverage to employees. road on the fringe of the Alps in Kennedy shot back: “No one else subsidiary Autocam Medical, er-in-law departed together at the Kennedy makes no apologies for southeastern France. gave a second mortgage to the where he is CEO and primary share- summit of one mountain pass, fighting for convictions that he “He was lying in the middle of the bank to finance the business or holder. The company was not part of headed for the valley floor several said stem from his faith. road and seizing,” recalled Randy guarantee personally all of its the NN purchase. thousand vertical feet and eight or Chilcote, describing the convul- “I’m not going to knowingly pay debts. No one else worked the hun- In 2011, Autocam Medical had 23 10 miles below. sions that stem from a concussion. for something that I am taught to dred-hour weeks my wife and I employees and sales of $4.5 million. He took his time. believe is not the way we are sup- Chilcote, a Grand Rapids emer- worked at the start.” It now employs 100 in Kentwood “I was stopping, taking in the posed to do that,” he said. gency room physician and part of But Kennedy said his greater and just over 200 in plants in Massa- scenery, enjoying the ride down,” the bike group, estimated it took 20 That’s not his only recent politi- concern is the implicit message he chusetts, California and Tennessee. Kennedy said. “He got down about minutes for doctors to arrive by he- cal jousting match. sees in Obama’s comment, one he It posted sales of $80 million in 2014, 15 minutes before I did, and that’s licopter. He nervously watched as In 2012, in the heat of the presi- thinks discourages the kind of and Kennedy projects that will all OK.” they tended to Kennedy for what he estimated was an additional 30 minutes, spending considerable time trying to reset his humerus. Kennedy spent a week in inten- sive care in France and two weeks in a Swiss hospital before coming home. Knowing her husband, Nancy Kennedy was hardly surprised “ HOW CAN DTE ENERGY when he declared his intent to get back on the bike as soon as he re- covered. She works for NN as a quality auditor. HELP MY BUSINESS SAVE?” “I certainly encouraged him to be careful,” she said, “but there Each business is different, so DTE Energy offers an online Interactive Business tool which was no question he would get back into road biking.” lets you get information tailored to your speciﬁc business environment. From grocery stores to warehouses, you’ll ﬁnd tips, incentives, rebates and more that will help you Surviving other crashes reduce your energy use. We also provide a number of other online tools to help our That attitude defines Kennedy’s business customers use less energy and save more money. tenure at Autocam, where he led the company through prosperity and recession and bought it back when it verged on bankruptcy. By 1991, Autodie was making enough money to go public. The stock offering helped Kennedy pay DTE wants to help you save, so get started at down the company’s debt. Eight years later, Kennedy sold dteenergy.com/interactivebusiness Autocam to a private equity firm but retained about 30 percent of the company. In 2004, the owners of the firm sold Autocam to the Wall Street investment firm Goldman Sachs with Penske Corp. as a partner. By 2009, with the auto industry having collapsed, Autocam was saddled with $120 million in debt and a bleak financial future. Kennedy invested all his personal assets along with those of other investors in a deal that purchased the debt at 40 cents on the dollar and converted it into equity in the firm. Kennedy did so on the condition he would have control of the company once again. Had Autocam foundered, Ken- nedy said, he could have lost everything. But with the gradual return of the auto industry and its debt significantly reduced, Autocam re- gained its footing. Then last year, it was sold to publicly held NN Inc. for just over $300 million in a deal that encompassed $244.5 million in cash, $25 million in stock and the assumption of $30.5 million in debt. Kennedy, subsequently appointed to NN’s board of directors, re- mains a significant shareholder. But he is not just about com- merce and equity. He’s unafraid of controversy, particularly when his religious faith stirs him to action. In 2012, Kennedy filed suit against Start saving today visit: the federal government, challenging dteenergy.com/interactivebusiness its mandate under Obamacare that employers such as Autocam are required to furnish free birth control to employees. He lost the first round 20150209-NEWS--0020-NAT-CCI-CD_-- 2/6/2015 10:39 AM Page 1

Page 20 CRAIN’S DETROIT BUSINESS February 9, 2015 CRAIN’S MICHIGAN BUSINESS Hello, expats: West Michigan group aims to bring you back

BY ROD KACKLEY attracting talent to a region bound- age is not limited ness of the region after moving here region of 1.6 million people. SPECIAL TO CRAIN’S MICHIGAN BUSINESS ed by Big Rapids to the north, Kala- to college gradu- from Chicago in 2005,” Harten said. “I suggested that we would be mazoo to the south, Battle Creek to ates. It runs all “I also quickly realized we were not much stronger if we put together an A 2010 survey by the Kalamazoo- the east and Holland-Grand Haven the way from doing a great job of packaging the entity called ‘West Michigan’ and based W.E. Upjohn Institute for Em- to the west — started an outbound doctorates to region as an entity sufficient to com- gave candidates a way to look at the ployment Research determined that marketing campaign in 2014 skilled manufac- pete” with similar-size markets. region as a whole, instead of Hol- a third of the open jobs in West turing personnel. through Facebook and Google ads Harten does not expect West land versus Grand Rapids versus Michigan through 2025 would have One of the seen where the expats are: cities Michigan to be able to compete with Muskegon,” Harten said. to be filled by employees who cur- founding mem- The conversation involving such as Chicago, Indianapolis and a market the size of Chicago, but rently don’t live there. Many po- bers of Hello Harten and fellow members of a Columbus, Ohio. Buffalo, N.Y., and “we sure should be able to compete tentially could be people who grew West Michigan business roundtable began in 2007. Pittsburgh will be targeted next. Harten with Milwaukee or Indianapolis.” up in the region. is Ann Harten, Hello West Michigan was the result. The problem, she said, is that re- To try to woo them back home, The reason for the looming short- vice president of global human re- It began with the launch of Hello West Michigan is going where age of talent local colleges and uni- sources at Holland-based office cruiters have been focused on hellowestmichigan.com in 2010. these expats live now. versities are not graduating enough furniture company Haworth Inc. helping individual companies or That website serves as a hub of infor- The organization — dedicated to people to meet demand. The short- “I quickly discovered the rich- communities rather than selling a mation — neighborhoods, schools, churches, things to do after 5 p.m. and other topics that would be of interest to the young professionals. Hello West Michigan has since advanced into social media advertising, selecting a target market for Google and Facebook ads that encompasses only people with a Michigan connection. “People put that information in their Facebook profiles so we can target the campaign specifically to people who have a hometown connection to Michigan or went to a Michigan college or university,” said Rachel Bartels, Hello West Michigan’s program manager. It is also a good bet that those people will be coming back for the holidays if they have family in the region. Hello West Michigan has been offering events the night before Thanksgiving to sell expats on the idea of returning. Bartels declined to comment specifically on the budget for the campaign and admitted it is hard to measure how well it is working. But she said the Facebook page just passed its 3,000th “like.” “There isn’t just one thing that affects a person’s decision to move to a new community. It is the sum of a lot of things,” Bartels said. “If we can tell them about something that piques their interest or tell them about a job opportunity, we consider that a success as well.” Haworth’s Harten said re- cruiters in the region continue to find it difficult to attract the talent SIGN UP FOR FAST INTERNET AND ADD PHONE AND TV FOR JUST their companies require. When the sought-after talent is not a single person, the situation be- comes more complicated. If the husband, wife, boyfriend or girlfriend who is part of the picture wants to find a job, it is not hard to believe they could find one in a market the size of Chicago or Los Angeles, but West Michigan? Harten said even a single person being recruited might want to know that if the job doesn’t work out, he or she would be able to find a similar position without moving. Again, it is easier to believe that would be possible in a major market rather than West Michigan. “When you are looking at a loose- ly woven entity like West Michi- gan, we have to help them answer those questions,” she said. While Hello West Michigan’s work is not finished, Harten said its impact is being felt by re- cruiters like herself. “Here at Haworth, we have reduced significantly the number of days it takes to fill a position,” she said. “So we would say it is still difficult, but it is getting easier. It certainly is getting faster.” 20150209-NEWS--0021-NAT-CCI-CD_-- 2/6/2015 11:48 AM Page 1

February 9, 2015 CRAIN’S DETROIT BUSINESS Page 21

Monthly France WHERE MICHIGAN DOES BUSINESS Autoliv Inc. ith a $2.739 trillion GDP for 2013, France Each World Watch features a Based: Auburn Hills gets one of its biggest ongoing economic different country. If you know Operations: Office in Paris, tech center in Wboosts from foreign tourists. Nearly 82 mil- of a Michigan company that ex- Gournay-en-Bray and seven plants through- lion tourists visit each year, according to the CIA ports, manufactures abroad or out France World Factbook. has facilities abroad, email Jen- Employees: 3,100 Manufacturing products are another big part of the nette Smith, managing editor, at Products: Airbags, seatbelts, steering French economy. Major exports include machinery, [email protected]. wheels, micro gas generators, passive safety plastics, chemicals, transportation equipment, phar- electronics maceutical products, iron and steel. France’s biggest Clients: Audi, Bentley, BMW, Citroën, Fiat, export partners are Germany (16.7 percent), Belgium COMING UP Ford, General Motors, Mercedes-Benz, Mit- (7.5 percent), Italy (7.5 percent) and Spain (6.9 percent). March: Egypt subishi, Nissan, Peugeot, Renault, Rolls Royce, France’s major imports include crude oil, vehicles, April: Russia Metaldyne employs 190 in two cities. Scania, Toyota, Volkswagen, Volvo plastics, chemicals, machinery and equipment. Top executive: Jonas Nilsson, president of Autoliv Europe Metaldyne LLC Based: Plymouth Operations: Manufacturing, engineering, Boulogne and commercial operations in Lyon area and manufacturing facility in Décines- Charpieu Employees: 190 Products: Isolation pulleys, engine crank- Esson shaft dampers Paris Creutzwald Top executive: Ivan Martinez, managing Nanterre Lillebonne director for Crankshaft Dampers Europe Customers: BMW, Renault, PSA (Citroën, Peugeot), Ford, Jaguar, GM Opel Rennes More information: Metaldyne’s operations Belfor Holdings employs 115 in France. in France designs, tests and manufactures advanced isolation pulleys and crankshaft Belfor Holdings Inc. FRANCE dampers. Based: Birmingham MSX International Inc. Operations: 20 branches covering six re- Lyon gions, including Paris, East, South-East, Based: Detroit South-West, North, Rhône-Alpes and Brit- Operations: Headquarters in Nanterre tany Employees: 550 Employees: 115 Products: Retail Network Solutions, provid- Services: Building restoration for fire and ing parts and accessories sales programs, water damage, property restoration, ma- dealer standards and process improve- chinery restoration, document drying and ments, training, technical support services restoration, electronics and machinery and warranty solutions to vehicle manufac- restoration, asbestos remediation, leak de- turers tection and mold remediation Top executives: Olivier Campanello, man- Top executive: Léonore Boulte, managing aging director; and Eric Menoret, RNS re- director gional vice president ment facility in Saint-Laurent-du-Pont Clients: BMW, CNH Industrial, Fiat, Ford, Gen- Employees: 100 eral Motors, Jaguar Land Rover, Kia, Nissan, Cooper-Standard Automotive Inc. Products: Enriching, reinforcing and mod- Peugeot Citroën, Volkswagen, Volvo and Yama- Based: Novi ifying technical polymers, including ha Operations: Manufacturing facilities in portable electronics and packaging applica- Creutzwald, Lillebonne and manufacturing tions. TRW Automotive Holdings Corp. and technical facilities in Vitré and Rennes Top executive: Jean-Alain Pypops, site Employees: 1,615 manager Based: Livonia Products: Fluid transfer systems, fuel and Operations: Manufacturing facilities in brake delivery systems, sealing and trim Federal-Mogul Corp. Bonneval, Ingwiller and Bouzonville; sales systems and anti-vibration systems and distribution center in La Défense Clients: PSA (Citroën, Peugeot), Tata, Ford, Based: Southfield Cedex; plant in Brest; sales office in Paris Geely, Volkswagen, Renault/Nissan, Mecaplast, Operations: Manufacturing facilities in Employees: 1,000 Plastic Omnium, Toyota, Daimler, Magna, Faure- Chazelles-sur-Lyon, Garennes-sur-Eure, Products: Braking systems, suspension cia, Gestamp Automoción, Webasto, I.A.C., Del- Noyon Cedex, Saint Priest Cedex, Crépy-en- Inteva Products employs 958 throughout France. components, radar systems, engineered fas- phi, Gecam, Benteler, Trèves, Trakya Cam Valois and Saint-Jean de la Ruelle; one of- teners and components, shock absorbers Volkswagen, Ford, Hyundai Sanayii A.S., Plastal, Leoni fice in Paris; a distribution center in Beau- and aftermarket components and systems Top executive: Pierre Blanchard, executive Top executive: Sylvain Broux, vice presi- vais Top executive: Thierry Metais, global ac- director of motors and electronics dent for France Employees: 1,600 count director Products: Piston rings and liners, engine Domino’s Pizza Inc. bearings, sealing and systems protection Kelly Services Visteon Corp. products, ignition products, friction prod- Based: Troy Based: Ann Arbor Based: Van Buren Township ucts, Operations: Headquarters in Clichy with Operations: Engineering and technical Operations: 239 pizza delivery and carry- Top executive: Emmanuel Couturier, man- 65 branches across the country including out stores aging director Versailles, Clichy Cedex, Issy-les-Moulin- center in Cergy; manufacturing plant in La Employees: 3,200 eaux, Villepinte, Lyon, Marseille, Annecy, Ferté-Bernard; software development facili- Products: Pizza and side items Grenoble and Nice ty in Sophia Antipolis Top executive: Andrew Rennie, president Inteva Products LLC Employees: 280 Employees: 755 of Domino’s Pizza Enterprises-Europe Based: Troy Services: Temporary work and permanent Products/services: Audio, body and securi- Operations: Four manufacturing plants placement in fields such as science, finance, ty, infotainment and controls, driver infor- Dow Corning Corp. and tech centers located in Esson, Saint-Dié insurance, IT, health care, office, manufac- mation, displays, clusters, dials, body con- and two in Sully-sur-Loire turing and logistics. troller module, head-up displays, telematics Based: Midland Employees: 958 Top executives: Franck Teboul, country and connectivity Operations: A wholly owned subsidiary of Products: Motors, latches, window regula- general manager; Natalia Shuman, senior Top executive: Martin Thall, executive vice Multibase, which makes thermoplastics tors and door modules vice president and general manager and president and president of electronics compounds, with one research and develop- Clients: PSA, Nissan, Renault, BMW, Toyota, COO for North Asia — Compiled by Natalie Broda 20150209-NEWS--0022-NAT-CCI-CD_-- 2/6/2015 12:11 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS February 9, 2015

CRAIN'S LIST: LARGEST GREATER MICHIGAN EMPLOYERS Ranked by outstate full-time employees

Company Outside SE MI Outside SE MI Michigan Address employees employees employees Worldwide Rank Phone; website Top executive Jan. 1, 2015 Jan. 1, 2014 Jan. 1, 2015 employees 2015 Type of business State of Michigan '%4,@4 34,668 :"/:" ##B7# C 99$.=4,+,9 1. 33.?:BB/#,5',$#-B-&7"/# $.=4,.4 1"/72:7:&B/#6>>>3+'%'$,3$.=

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McLaren Health Care Corp. %'*'0,4,9' 16,793 /87-/ /-#BB /-"BB ,9$49%*9%4*'=4@5@59+ 3. :;:"%4.*',9#":; 045',9, 1/B2:#;&//BB6>>>3+*4,3.4$

General Motors Co. 4@44 14,239 /:7/B #"#;# ;/"-BB C<9.+.'*+,< 9<44 4. :BB,'55,,9494.'9#;8" 1:/:2""8&"BBB6>>>3$+3.+

Michigan State University .<C,,'+., 11,300 //B"B //:BB C <*'<,'=45'9@ 5. 59,5',$#;# 045',9 1"/72:""&/""6>>>3+5<3<

Trinity Health '%4'*!**, 10,310 -7/- ;#/78 8:/B *9%45@59+ 6. ;B"""'9.44)>@'=.,'#/"; 045',9, 17:#2:#:&/BBB6>>>394','9@&%*9%3.4$

U.S. government C 9,880 -/B ;"87 /-#:/"7 4*$.=4,+,9 7. #77'%'$,C=394.'9#;;8 1:/:2;;8&#-/B6>>>3<53$.=

CMS Energy Corp. .%,<55** 6,560 8:8B 7#BB C ,4$@04.='4 8. /,4$@*A)5.,#-;B/ 045',9, 1BB2#77&"B"B6>>>3+5,4$@3.+

Magna International of America Inc. '+.', 6,063 ;BBB /BB-7 /:/BBB C<9.+.9'=04955<00*'4 9. 7"B.>44'=4.@#B- %' +4)9',$. !4, 1;#28:/&//BB6>>>3+$,3.+ 045',9$,C5'

U.S. Postal Service %.+05., 5,969 "-8- /78:: C .59*54=' 10. /#B/3.499394.'9#;::&-8"/ '594'9+,$4<59.+4 1:/:2;;8&876>>>3<5053$.= 54=',5*5

Sparrow Health System ,,'5>, 5,894 ";#- "-# C *9%45@59+ 11. /;/"3'%'$,C=3,5',$#-/; 045',9, 1"/72:8#&/BBB6>>>35044.>3.4$

The Dow Chemical Co. C,4>'=4'5 5,863 "8B; "-B C 0'*9@%+'*5=,+94'*5$4.5',5,0*59'5 12. ;B:B.>,94'*,#87# 045',9%'4+,, 1--28:8&/BBB6>>>3.>3.+

Alticor Inc., dba Amway 9=,C,* 5,000 "BBB "BBB ;BBBB '495**4. 4',$.,5<+404.<95,<5',55.00.49<,'9'5 7"7"<*9.,933C#-:""&BBB/ %'4+, 5<00.49@$*.*$4'<5',55+,< 9<4',$,*.$'59'55<00*@ 13. 18/8277&/BBB6>>>3+>@3.+ .<$.5 %',3 045',9 Nexteer Automotive <4,9455., 4,820 #7BB ##B //BBB 94',$,4'=*',9'4&.,<9.+.9'=5<00*'4 14. :-BB3.**,.$',>#8B/&-#-# 045',9, 1--27"7&"BBB6>>>3,?943.+

FCA US LLC B 4$'.4%'.,, 4,420 /#;B :"BBB 77BB C<9.+.'*+,< 9<44 /BBB%4@5*44'=C<<4,'**5#:;8&;788 '9%4@5*4 15. 1;#2"78&"7#/6>>>3 ,.49%+4'3.+ C<9.+.'*533%'4+, ,C Dow Corning Corp. .49,5, 4,200 #;BB #;BB //BBB '*'.,&5+94'*5,9%,.*.$@ 16. ;;BB3*A<4$.'*,#88 %'4+,,045',9 1--2#-8&#BBB6>>>3.>.4,',$3.+

SpartanNash C ,,'5'5., 3,929 :-: #B/# /8#:- 4.4@49'* 17. "B789%934,0'5#-/" 045',9, 18/827&;BBB6>>>35049,,5%3.+

Perrigo North America .50%0 3,900 #8BB :-BB -"BB %4+<9'*5 18. "/"594,C=3C**$,#-B/B %'4+,045',9, 1;8-287:&#"/6>>>3044'$.3.+ 44'$..30*

Munson Medical Center C* 4'*.,$43C 3,764 :78# D :78# B *9%4 19. //B"'?9%934=45'9@#-8# 045',9 1;:/2-:"&"BBB6>>>3+<,5.,%*9%43.4$

Covenant HealthCare 4< 3,617 :#8" :8/7 C *9%45@59+ 20. /##7344'5.,$',>#8B; 045',9, 1--2":&BBBB6>>>3.=,,9%*9%43.+

Herman Miller Inc. 4',*)4 3,527 :#-7 :":B 7/BB .++4'*. !%*9%4<9'.,,45',9'* <4,'9<4 21. ""3',C=3*,#-#8# 045',9, 18/828"#&:BBB6>>>3%4+,+'**43.+

Borgess Health 9%@C3(.<,$ 3,071 :B"; :B7/ :-8# *9%45@59+ 22. /";/<**.*+A..#-B# 045',9, 1;8-2;;8&7BBB6>>>3.4$553.+

DTE Energy Co. 44C,45., 3,051 :BB -:B /BB;# ,4$@,,4$@&9%,.*.$@.+0,@ 23. /,4$@*A94.'9#;;8 %'4+,, 1BB2;:"&BBB6>>>39,4$@3.+

Western Michigan University .%,<,, 3,018 :B87 :B;: C <*'<,'=45'9@ 24. /-B:3'%'$,C=3*+A..#-BB 045',9 1;8-2:7&:;:;6>+'%3<

Lacks Enterprises Inc. '%4)543 2,830 ;7"B ;B ;-:B ,(9'.,+.*',$55+*@0',9',$,0*9',$ 25. "#8B5.4,0'5#-"#8 18/82-#-&8"7B6>>>3*)5,9404'553.+

()2+)23.&1%!3%1)#()'!-%,/+.7%12%-#.,/!22%2#.,/!-)%26)3(!2)'-)8#!-3%,/+.7%%/1%2%-#%)-)#()'!-"43.432)$%.&!7-%!*+!-$!#.,")5)-'23.-.1!2(3%-!6#.4-3)%24,"%1.&&4++3),%%,/+.7%%2,!7)-#+4$%&4++3),%%04)5!+%-323)2-.3 !#.,/+%3%+)23)-'"433(%,.23#.,/1%(%-2)5%!5!)+!"+% Crain's %23),!3%2!1%"!2%$.-)-$42317!-!+72%2!-$"%-#(,!1*2-%621%/.132!-$!6)$%1!-'%.&.3(%12.41#%2-+%22.3(%16)2%-.3%$)-&.1,!3).-6!2/1.5)$%$"73(%#.,/!-)%2#34!+1%5%-4% 8'41%2,!75!17-.3!5!)+!"+% B .1,%1+7(172+%11.4/!,%#(!-'%"%#!,%%&&%#3)5%%# C /!13!-3.1%2!#04)2)3).-.&!2()-#(.6!2#.,/+%3%$.-.5 D 2.&4+7 20150209-NEWS--0023-NAT-CCI-CD_-- 2/6/2015 10:33 AM Page 1

February 9, 2015 CRAIN’S DETROIT BUSINESS Page 23

CALENDAR WEDNESDAY preneur Week 2015.” who will talk about what it means to 7th Annual Homegrown Local Food be a leader. MSU Management Educa- 2014 NEWSMAKER OF THE YEAR FEB. 11 Summit. 8:30 a.m.-5 p.m. Feb. 15. Slow tion Center, Troy. $25 members, $36 Food Huron Valley. This year’s nonmembers. Contact: (248) 952-6880; Who made news in 2014? Find out at the Crain’s Detroit Business Under the Dome: An Evening with theme, “Food Love,” promotes the lo- email: [email protected]; Newsmaker of the Year luncheon. It takes place Feb. 25 from 11:30 a.m.- Michigan’s Female Leaders. 3-7:30 cal food movement. Keynote speaker website: leadershipoakland.com. 1:30 p.m. p.m. Inforum and Dome magazine. is Judy Wicks, author and founder of Leading Nonprofit Organizations: Hear the dramatic details from key players involved in Detroit’s historic Tour the state Capitol and meet Philadelphia’s White Dog Café. Poet Training for Executive Directors and women from Michigan’s 98th Legisla- bankruptcy as Crain’s honors the city’s former emergency manager, Kevyn and musician William Copeland from Boards. 9 a.m.-4 p.m. Feb. 25. Michi- Orr, and Judge Steven Rhodes of the U.S. Bankruptcy Court. Gerald Rosen, ture plus department heads and digni- the Eastern Michigan Environmental gan Nonprofit Association. Regina chief judge of the U.S. District Court for the Eastern District of Michigan, taries. Michigan State Capitol and Action Council also hosts a local food Funkhouser, executive director of the who also acted as chief bankruptcy mediator, will moderate. Also, 2014’s Radisson Hotel, Lansing. $35 Inforum story slam. University of Michigan Nonprofit Network, facilitates a pro- members, $50 nonmembers. Contact: Central Campus, Ann Arbor. $50 tick- gram designed to help nonprofit board Best-Managed Nonprofit winner will be honored. Linda Morrell, (313) 567-0287; email: et includes breakfast, brunch and members and executive directors bet- The event will be at MotorCity Casino Hotel, 2901 Grand River Ave., [email protected]; web- snacks. Contact: Sarah Reinhardt, ter understand legal and fiduciary re- Detroit. Individual tickets are $70, a reserved table of 10 is $750, and site: inforummichigan.org. [email protected]; website: sponsibilities and more effectively student tickets are $60. Preregistration closes Feb. 20 at 5 p.m. If localfoodsummit.org. raise funds. Nonprofit Center at the available, walk-in registration will be $90 per person. THURSDAY Breakfast of Champions. 7:30-9 a.m. Armory, Lansing. $60 MNA members, For more information or to register, contact Kacey Anderson at (313) 446- Feb. 18. Leadership Oakland. Jennifer $80 nonmembers, $30 for additional 0300 or [email protected], or visit FEB. 12 Korman, community relations, Mer- members from the same organization. crainsdetroit.com/section/CrainsEventsUpcoming. cedes-Benz Financial Services, moder- Contact: (517) 796-4750; website: Leaders & Innovators Series: Attracting ates a panel of young professionals nonprofnetwork.org. Join the conversation with #crainsnewsmaker. & Retaining Talent. 7:30-9 a.m. Flagstar Bank and WWJ Newsradio 950. WWJ/Fox 2 Business Editor Murray Feldman emcees this interactive panel discussion featuring Stephanie Comai, deputy director of the Michigan Depart- ment of Licensing and Regulatory Af- fairs, and Jocelyn Lincoln, vice president of Americas recruiting, Kelly Services. Lawrence Technological University – UTLC Gallery, Southfield. Free. Con- tact: Erin Mclin, (248) 430-5855; email: [email protected]; website: apacc.net. Give your employees Automation Alley’s Technology Industry Outlook. 10:30 a.m.-1 p.m. Luncheon features a presentation meant to help the business community promote South- the duck. east Michigan as a center of cutting- edge companies and skilled workers. Anderson Economic Group will unveil a regional economic forecast. Colony Club, Detroit. $40 members, $50 nonmembers. Contact: (800) 427-5100; email: Anything else is just [email protected]; website: automationalley.com. UPCOMING EVENTS chicken. Small Business Legal Academy. 8:30 a.m.-4 p.m. Feb. 14. Miller, Canfield, Paddock & Stone. To cap off 2015 De- troit Entrepreneur Week (Feb. 10-13 at Hope Center for Advanced Technolo- Almost 60 percent of employees gies, Detroit), area entrepreneurs and startups can attend panel discussions wish their employers offered on intellectual property, marketing, funding, social entrepreneurship, voluntary insurance1. nonprofits and more, plus get advice at “Ask a Lawyer” sessions. Represen- tatives from Miller Canfield, Bodman PLC, Dykema Gossett PLLC, Honigman The question is, who will you choose? Miller Schwartz and Cohn LLP, Gener- al Motors Co., Hewlett-Packard Co., Jaffe Raitt Heuer & Weiss PC, Sadek You could opt for a voluntary option from your Bonahoom PLC, Wayne Alumni Law Group, Michigan Community Re- medical carrier, or you could offer coverage from sources and more will be in atten- the number one voluntary provider2: Afl ac. dance. Wayne State University Law School, Detroit. Free; advance registration is recommended. Website: There’s no direct cost to you for offering it, and dew15.eventbrite.com or visit Face- book and search for “Detroit Entre- getting started is as simple as adding a payroll deduction. That’s why business owners like you JOIN CHINESE BUSINESS have chosen Afl ac for nearly 60 years. It’s also why we’re so confi dent Afl ac is the right partner ASSOCIATION FOR GALA for your business. Join the Detroit Chinese Business Association — and a roster of government and industry leaders You can bet the farm on it. headed by Gov. Rick Snyder — in the 19th annual Chinese New Year Gala, 5-11 p.m. Feb. 27 at Call your local agent and visit MotorCity Casino Hotel. The gala, ushering in the Chinese afl ac.com/business Year of the Sheep, will include a reception, drinks, dinner, networking and entertainment. Among the speakers is Snyder, who will keynote. The DCBA is a nonprofit that has been operating since 1995, primarily to foster beneficial relationships between Chinese and American businesses. Tickets are $250 each; seating is limited. Register online at www.dcba.com or call (248) 918- 12013 Afl ac WorkForces Report, a study conducted by Research Now on behalf of Afl ac, January 7 – 24, 2013. 2Eastbridge Consulting Group. U.S. Worksite/Voluntary Sales Report. Carrier Results for 2012. Avon, CT: April 2013. Coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, coverage is underwritten by American Family Life Assurance 0391. For more information, email Company of New York. Worldwide Headquarters | 1932 Wynnton Road | Columbus, GA 31999 Milan Stevanovich at [email protected] or Cathy Cui at Z131175 11/13 [email protected].

AFL3030 B2B ChickenJr ALT.indd 1 1/24/14 12:18 PM 20150209-NEWS--0024-NAT-CCI-CD_-- 2/6/2015 10:32 AM Page 1

Page 24 CRAIN’S DETROIT BUSINESS February 9, 2015

BUSINESS DIARY ACQUISITIONS & MERGERS the Urology Department of the Universi- nounced Henkel Adhesive Technolo- eration center, 1400 Rosa Parks Blvd., provider of secure, cloud-based au- ty of North Carolina School of Medicine gies has added Almond Products Inc., Detroit. Website: lift.technology. thentication services for companies, Interior Partnership Group, Clawson, a is using RegistryMetrix. Website: Spring Lake, as a licensed process cen- added electronic health record soft- design, construction, brand, architec- North, a casual dining restaurant, has arbormetrix.com. ter. Almond will apply Henkel’s oat- ware by Epic Systems Corp., Verona, tural products and building mainte- opened at Detroit Metro Airport Mar- ings to magnesium and aluminum Wis., to its list of applications natively nance services company, has merged Aria Group, Irvine, Calif., a rapid proto- riott, 30559 Flynn Drive, Romulus. structural parts and powertrain com- Telephone: (734) 729-7555. Website: supported by two-factor authentica- with NBS Commercial Interiors, Troy, typing and manufacturing firm, has ponents for automakers. Websites: marriott.com/dtwrm. tion. Website: duosecurity/epic. and changed its name to NBS Con- purchased one node-lock seat for ma- chining and a virtual machine from henkelna.com, almondproducts.com. struction Solutions, a division of NBS FordDirect, Dearborn, a joint venture Tebis America Inc., Troy, a software Commercial Interiors. The firm will Michigan Stars Football Club, an ama- MOVES between Ford Motor Co. and its fran- company specializing in CAD/CAM sys- chise dealers, announced the launch remain in Clawson and is expanding teur club that competes in the Nation- Blue River Financial Group Inc., a mid- tems for design and manufacturing ser- of DealerConnection Elite Plus, which services to help businesses with clean- al Premier Soccer League’s Midwest dle-market merger, acquisition and vicing the tool, die, mold, aerospace and Region’s Great Lakes Conference, has valuation advisory firm, has moved provides a highly customizable web- ing needs. Website: yournbs.com. automotive manufacturing industries. signed an agreement making Ponti- its headquarters from 8445 S. Saginaw site tailored for Ford and Lincoln deal- Penske Automotive Group Inc., Bloom- Websites: aria-group.com, tebis.com. ac’s Wisner Stadium the Stars’ home St., Suite 200, Grand Blanc, to 1668 S. ers. Website: forddirect.com. field Hills, a transportation services Ash Stevens Inc., Riverview, a provider company, announced the acquisition of field for the 2015 season. Sister club Telegraph Road, Suite 250, Bloomfield of global contract pharmaceutical drug Hills. Telephone: (248) 309-3730. Web- a Land Rover dealership in Darien, The Motor City Football Club, part of substance development and active site: goblueriver.com. DIARY GUIDELINES Conn. Website: penskeautomotive.com. the Women’s Premiere Soccer pharmaceutical ingredient manufac- League, also will play at Wisner. Both turing services, announced the U.S. Email news releases for Business teams are owned by Dearborn Sports NEW PRODUCTS CONTRACTS Food and Drug Administration has ap- Diary to cdbdepartments@ Enterprise, which is moving opera- Better Business Bureau of Detroit and ArborMetrix Inc., Ann Arbor, a provider proved ASI’s manufacture of Amotos- crain.com or mail to Departments, alen, the API in intercept blood system. tions from Dearborn Heights to Ponti- Eastern Michigan, Southfield, is offer- of cloud-based health care analytics, Crain’s Detroit Business, 1155 Website: ashstevens.com. ac. Website: michiganstarsfc.com. ing the BBB Auto Resource Center to announced that Health Care Improve- Gratiot Ave., Detroit, MI 48207- Autocom Associates, Bloomfield Hills, more easily deliver information to cus- 2997. 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Request for Proposals for General Counsel for the Police and Fire Retirement System of the City of Detroit PEOPLE The Trustees of the Police and Fire Retirement System of the City of Detroit are seeking proposals for General Counsel Services. ARCHITECTURE NONPROFITS Individuals or  rms are invited to submit a proposal. The request for proposal Kathy Neirynck to senior associate, IN THE SPOTLIGHT will be available on Feb. 9, 2015. The RFP will be posted on the Police and Fire Grissim Metz Andriese Associates PC, Retirement System of the City of Detroit’s web site at www.pfrsdetroit.org. Northville, from associate. Also to se- Angela Hospice has named Margot The RFP will be on the PFRS home page. nior associate from associate: Scott Parr its president and CEO. Black and Steve Endres. For the past eight years, Parr has Responses are due on March 2, 2015 by 3 p.m. EST. taken on For all correspondence and inquiries concerning this RFP, contact: FINANCE leadership David Cetlinski, Assistant Executive Director, [email protected]. Kathy Crockett and Jeff Solis to senior roles for manager, UHY LLP, Sterling Heights, Evangelical from manager. Also, Emily Cody, Lori Homes of DiLisio, Ryan Fletcher and Marta Michigan in Mikolajczak to manager, from senior Farmington accountant/consultant, and Nick Junt- Hills, most Sanders Dobbins tila to manager, Farmington Hills, recently as Brittany Sanders to program manag- from senior accountant/consultant. senior executive er, Challenge Detroit, Detroit, from Elizabeth Ottaway to executive direc- director. She founder, The Amber Agency, Detroit. tor, Pointe Capital Management LLC, also was Parr Also, Caroline Dobbins to events and Grosse Pointe Farms, from senior in- operations operations manager, from outreach vestment manager, Munder Capital consultant with Trinity Continuing specialist, Digerati Inc., Detroit. Management Inc., Birmingham. Care Services, executive director for Ryan Ambrozaitis to chief develop- Eric Slutzky to vice president of real Jewish Home & Aging Services ment officer, Vista Maria, Dearborn estate, Kaufman Financial Group, (now Jewish Senior Life) and director Heights, from executive director, Hen- Expanding? Farmington Hills, from director, leas- of operations for Mercy Services for ry Ford Village Foundation, Dear- ing and asset management, Friedman Aging (now Trinity Continuing Care born. Integrated Real Estate Solutions, Services). Farmington Hills. 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Kotzian dent for safety PLLC, Farmington Hills. net transforma- Matthew Mrkonic to partner, litiga- PEOPLE GUIDELINES tion and commu- tion department, Honigman Miller nity benefit, Schwartz and Cohn LLP, Detroit, from Announcements are limited to Trinity Health, associate, O’Melveny & Myers LLP, management positions. Email them Livonia, from Century City, to [email protected] commissioner, Calif. or mail notices to Departments, FURNITURE | FABRICS | WALLCOVERING | ARTWORK | FLOORING Department of Public Health, Crain’s Detroit Business, 1155 LIGHTING | TILE | KITCHENS | PLUMBING | ACCESSORIES MARKETING Choucair City of Chicago. Gratiot Ave., Detroit, MI 48207- John Mozena to 2997. Releases must contain the LAW account director, person’s name, new title, company, 1700 Stutz Drive | Troy, MI 48084 | 248.649.4772 Franco Public Re- city in which the person will work, Geoffrey Brown to partner, Collins Ein- M - F | 9AM - 5PM | Open to the public lations Group, De- former title, former company (if not horn Farrell PC, Southfield, from asso- troit, from ac- michigandesign.com ciate. Also to partner, from associate: promoted from within) and former count director, city in which the person worked. Trent Collier, Katherine Crowley, Mort Crim Com- Melissa Graves and Julie Nichols. Photos are welcome, but we cannot munications Inc., guarantee they will be used. David Kotzian to shareholder, Mozena Detroit. 20150209-NEWS--0025-NAT-CCI-CD_-- 2/6/2015 4:14 PM Page 1

February 9, 2015 CRAIN’S DETROIT BUSINESS Page 25 Hemingwrite: But will it appeal to the old man in the C-suite? ■ From Page 3 That translated into more than peal to creative writers, and ad- Production said his research into crowdfund- The origins 1,000 Hemingwrite orders, which vances the dormant electronic ing indicates that campaigns that Leeb and Paul have promised to de- typewriter category. Leeb said they are still assem- raise $5,000 or more turn into an The Hemingwrite was born after liver by September, when they also The device can store up to a mil- bling their full-production manu- ongoing business more than 90 Leeb and Paul, working on unrelat- plan to begin public retail sales. lion pages internally, and can be facturing plan. percent of the time. ed projects, began chatting about Pre-orders at the full retail price synchronized to cloud storage. It “We’re still looking at our op- “The size of their success is pret- writing without distractions. of $499 are scheduled to begin today. will work with documents from tions. We’re just not sure,” he said. ty rare,” he said. “It’s quirky, but “Patrick and I were both working Kickstarter backers got a discount, platforms such as Google Docs, “It could be done here, it could be there’s a very specialized need.” in same co-working space. He used with more than 500 buying at $369. DropBox, Evernote and iCloud. at (a) contract manufacturer, and distraction-free writing software. In the meantime, Leeb and Paul The machine has a four- to six- it could be overseas. We’re most As we started talking about it and are seeking to hire mechanical and week battery life, and recharges via interested in trying to keep it close Selling it learning about it more, it no longer electrical engineers and people expe- a USB cable, which also can be used to maintain high quality.” The duo doesn’t yet have a so- seemed hokey,” he said. “There’s a rienced in launching startups to aid to upload files. The primary components are the phisticated marketing plan, instead real need for machines to be better their two-man operation that works The 6-inch screen’s e-ink is the screen, the keyboard switches and relying on trade shows — they’ll designed for a purpose.” now out of a small space in TechTown. same used in e-readers such as the caps, electronic boards and chips, have a booth at April’s Association of Leeb said Paul is a prolific jour- Leeb, 29, is a mechanical engineer Kindle. The Hemingwrite uses a the battery and a custom housing. Writers and Writing Programs confer- nal writer, and he himself wants to and Massachusetts Institute of Technol- grayscale screen, and it mimics the The retail price is driven by the ence, and they were at the Consumer write more often. ogy graduate, while Paul, 25, is a appearance of ink on paper. cost of the screen and the key- Electronics Show in Las Vegas last “That’s one of the reasons that at- software developer who graduated Two simple dials that flank the board, Leeb said. month — and word of mouth. tracted me to this project,” he said. from Michigan State University. screen toggle between folders and “Those two are the most impor- “The biggest thing for us is for “It seemed like a way to remove turn on the wireless connection. tant, considering it’s a writing tool,” the community of writers we’ve in- some of the friction of writing.” The mechanical keyboard — he said. “We’re trying to use high- teracted with so much, building And that’s where Hemingway The device what you find on a typical modern quality, long-lasting components.” that community and letting them do comes in. Leeb and Paul played The prototypes created by Leeb computer — is the popular Cherry While he declined to disclose how our evangelizing for us,” Leeb said. around with various names, but and Paul thus far are reminiscent MX from ZF Electronics GmbH. much each machine will cost to He noted that “tens of thou- settled on the Pulitzer- and Nobel of vintage typewriters, the early The housing is aluminum and manufacture, Leeb said the compa- sands” of people have signed up for Prize-winning novelist. laptop TRS 80 Model 100 and the the entire machine weighs about 4 ny will make “less of a margin than the Hemingwrite newsletter, and For writers, Hemingway can fuel electronic typewriters of the 1990s. pounds. It’s 8 inches long, 10 inch- our advisers are telling us to do.” the device has generated news cov- fantasies of writing blockbuster sto- So who would use the child of es wide and 2.5 inches tall. It has a The immediate pitfall Leeb and erage from tech blogs and tradi- ries in the woods of northern Michi- those three parents? fold-down handle for carrying. Paul face is getting the Hemingwrite tional media outlets. gan, among the six-toed cats of tropi- “We initially envisioned cre- Channeling Henry Ford, Leeb delivered on time, said Ethan Mol- Leeb and Paul’s distribution plan cal Key West, or in the street cafes of ative writers as our target market, said the Hemingwrite comes in lick, a professor of management at at this point is direct sales. They’re 1920s Paris — very saleable roman- people who enjoy the process of “any color as long as it’s black.” the University of Pennsylvania’s Whar- looking for a national or interna- tic notions for Leeb and Paul. writing,” Leeb said. Other languages supported in- ton School who specializes in crowd- tional retailer as well and are inter- “There is nothing to writing. All Specifically, he said, Heming- clude German, Italian, Portuguese, funding and entrepreneurship. ested in selling at specialty retail you do is sit down at a typewriter write is aimed at journalists, novel- Spanish, French, Turkish, Korean, About 85 percent of large crowd- shops such as Shinola. and bleed,” Hemingway once said. ists, screenplay writers, songwrit- Swedish, Chinese, Russian, He- funded projects deliver late, he said. “It would have to be within a And perhaps pay $499 to bleed ers and bloggers — and they’ve brew, Japanese and Greek. Leeb and Paul have acknowl- specific niche,” Leeb said. “I’d without distractions. backed their interest with orders. The Hemingwrite also will in- edged that September is an aggres- rather have our products sold at a Bill Shea: (313) 446-1626, The modern e-ink screen, key- clude an open software develop- sive timeline. store like Shinola. They are the [email protected]. Twitter: board and ability to cloud sync ap- ment kit to customize devices. On the positive side, Mollick model for how to do that.” @bill_shea19

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Page 26 CRAIN’S DETROIT BUSINESS February 9, 2015 Bob Paul after Compuware: VC, running … beer

ob Paul, 52, the former CEO frame businesses, in- pany, and there was a lot. of Compuware Corp., is finally vestments being Bstarting to decompress after made in too many You told the board a year ago that a stress-filled two years. diffuse areas and a you wanted to split Compuware into First, he had to fend off a hostile bloated cost struc- two businesses. Why? takeover from Elliott Management, ture. Splitting up Compuware, APM a New York City hedge fund that The combination from mainframe, made sense for officially put the Detroit-based of investing and ac- the following reasons. The main- computer services company in its quiring businesses frame business was a declining crosshairs in December 2012. in a concentrated business with very high margins, That required orchestrating a category (applica- and the APM business was fast- drastic makeover in Compuware’s tion performance growth but with narrow margins. board of directors, selling off non- management) where They attracted different investors. core business units and launching we had some compet- They needed different manage- a major cost cutting that meant itive positioning, ment styles and needed to be man- layoffs and buyouts. selling off noncore aged by different metrics. Left to- In 2013, Paul was embroiled in a businesses and re- gether, the APM business would public feud with company co- ducing the cost deflate the mainframe business’ founder Peter Karmanos Jr., which structure were all margins, and mainframe would de- led to Karmanos losing the lucrative part of the solution. flate APM’s growth numbers so consultant contract he got when he the company would appear stalled. retired and, in turn, a lawsuit by Reducing the cost By separating the two companies, him that led to arbitration now un- structure meant some our modeling showed that we derway. layoffs. Any of those as could increase shareholder value More than a year ago, Paul told a result of the acquisi- by 25-30 percent. the board and fellow C-suite execu- tion by Thoma Bravo? tives at Compuware that his wish None of the layoffs There was a public rift between and list for 2014 was to distribute all LARRY PEPLIN we did last year had you and company co-founder Peter the stock Compuware held in Cov- Former Compuware Corp. CEO Bob Paul: “Whatever I do next, I want to have fun.” Fun, in Paul’s Karmanos after he retired in 2013. He case, might be working with local microbreweries. anything to do with isint Corp. to shareholders, split the sale. When I took was vocal in criticizing you for alleged- Compuware into two business over, our general and ly not standing up to Elliott Manage- ment. You then terminated his con- units or even two separate compa- school’s club team. And I’d like to join a local venture administrative expense was double nies, and sell its iconic headquar- sulting contract, and it ended up Here are highlights of Paul’s in- capital firm in some capacity. I’m that of our peers. We had to bring ters building at Campus Martius. going to arbitration. Where does that terviews: interested in what’s going on in De- that into line. The series of layoffs All of that came to pass last year, stand? troit, but Ann Arbor makes more last year was part of the plan that as well as one other important piece It’s ongoing. I hope it will be You’ve had a month to decompress sense for me. My wife went to Michi- we earlier announced to analysts to of business: Compuware was taken over shortly, in weeks rather than and spend some time golfing in Flori- gan, I went there, my two daughters cut $120 million in costs. We did sev- private when it was sold for $2.4 bil- months. da. Anything in the works? went there, and my son is going erance packages well above and be- lion to Thoma Bravo LLC, a Chicago- there next year. I’m having a lot of fun getting yond what was required. We had a based private equity firm in a deal into the next phase. I’m crazy I don’t suppose the result will be human resources consultant, Tow- that closed in December. Thoma busy right now. I’m getting You’ve got an entrepreneurial inter- made public. ers Watson, and we went beyond Bravo offered $10.92 a share, about plugged into the Ann Arbor ven- est in beer, too, eh? My guess is we’ll be locked down their recommendations for indus- an 8 percent premium to Com- ture capital community, I’m guest Joe Angileri (former Com- by court order and terms won’t be try standards. puware’s average stock price. It lecturing at the Ross School (of Busi- puware president and COO) is tak- made public. closed at $10.75 a share. ness at the University of Michigan) ing the point on that. He’s on some Today, the company is in better Paul left Compuware at the end of and I’m taking on a project with sort of Michigan beer board. We shape than it has been in a decade. When you left Compuware, accord- December. During January and ear- some New York City Wall Street want to do a roll-up of local micro- Since the glory days of Y2K. The last ing to public filings you left with a so- ly February, Paul had a series of folks. I’d been in discussions with breweries. I don’t want to name six quarters, we beat Wall Street ex- called golden parachute of $6.7 mil- conversations with Crain’s reporter a few Wall Street firms about their any names yet, but he’s talked to a pectations, and that hadn’t hap- lion in a combination of cash and Tom Henderson about the sale of executive-in-residence programs, couple of microbreweries locally. pened since Y2K. But I don’t want equity and more than $13 million from Compuware and what’s next for which basically is sitting on They know how to make really this looking like I’m taking all the the stock and options you’d accrued him. boards and helping them manage good beer, but they could use our credit. Credit goes to the leadership after joining Compuware when it New goals include getting in- their portfolio companies. help running a business, and they team, which includes Joe Angileri, bought Covisint in 2004. How do you volved in the local venture capital could (use) investment capital to Lisa Elkin, John Van Siclen, Chris respond to critics who might say you community, becoming a craft beer Tell me more about your interest in increase production and distribu- O’Malley and Denise Starr. (See re- had a vested interest in selling the entrepreneur, training for a the venture capital. tion. Whatever I do next, I want to lated story about the plans Van company to Thoma Bravo? triathlon and running the Free I’m plugging into the Ann Arbor have fun, and that would be fun. Siclen and O’Malley have for the I would tell them, No. 1, that the Press marathon this October. venture capital community. I was Compuware business units they are remaining parts of what we had to The latter two involve a return asked to be a judge at Michigan You told me once that Compuware running.) do are a lot easier to do as a private to the playing field, of sorts, for Business Challenge at the Zell was on a slow death spiral when you It wasn’t just Elliott Manage- company. No. 2, this was not a Paul, who was an All-State soccer Lurie Institute. That was fantastic. took over as CEO in June 2011. Can ment and Thoma Bravo who had CEO decision. A CEO doesn’t player at Detroit Catholic Central Companies were making pitches, you elaborate? an interest in us. We probably had make that decision. It was a deci- High School in 1980 and an all-Mid- and some of them were so exciting. Compuware was most likely 18 strategic and private equity sion by the board and by investors. west region soccer player at I think I’ll end up making a person- heading out of business or for a companies looking to buy the com- If we hadn’t taken this deal, we Aquinas College his sophomore year al investment in a startup compa- discounted sale. We had a decade pany. We never put the company would have been in trouble for not before transferring to the University ny. I think I have a knack for help- of declining revenues, not enough up for sale. But we agreed to look taking it because of the premium of Michigan, where he played on the ing businesses find their way. growth coming from the non-main- at any inbound interest in the com- on the share price.

Compuware: A key to revenue revival: More new products ■ From Page 1 long been a shrinking market. The cent between 2014 and 2016 to about “In three years, we’re going to and value of mainframes. business was up 22 percent for the APM business has narrow mar- $246.6 million, while Dynatrace have flat to modest growth, at “There’s a mindset that the quarter that ended Dec. 31, com- gins, but high growth. would see an increase of 13 percent least,” he said. “We can bring new mainframe business is less dedicat- pared to the same quarter a year The mainframe business re- to about $420 million. products to market that can lead to ed to innovation, and we’re going to earlier. tained the Compuware name and Both Van Siclen and O’Malley say meaningful growth. Are there peo- change that,” said O’Malley, a 27- And in early January, Com- its Detroit headquarters. The busi- they plan to beat those numbers. ple out there who will buy new year veteran of CA Technologies Inc. puware released its first new prod- ness unit overseeing the APM mainframe products if they are of New York City who was recruit- uct since 1999, Topaz, which was de- business was renamed as Dyna- good ones? Yes.” ed by Paul last July to run the signed with intuitive graphic trace and moved its headquarters Mainframes still relevant. Really. O’Malley said the key to stopping mainframe business and assume interfaces to help newer IT employ- to Waltham, Mass. Contrary to the SEC filing, O’- a decline in revenue is to provide the roles of president and CEO ees unfamiliar with mainframes In a filing in November with the Malley says he thinks he can grow new products that companies see as when it was split off. get up to speed and start replacing U.S. Securities and Exchange Commis- the business and will not only relevant, while, perhaps more im- Thanks to a return of a former the aging workforce that now runs sion, Compuware said the main- avoid layoffs but is adding employ- portant, convincing what he calls customer, a large insurance compa- industry mainframes. frame business was expected to see ees and plans a regular release of new age chief information officers ny he declined to name, O’Malley “You have to make aggressive a decline in revenue of about 7 per- new products and upgrades. that they underestimate the power said revenue for the mainframe See Next Page 20150209-NEWS--0026,0027-NAT-CCI-CD_-- 2/6/2015 4:15 PM Page 2

February 9, 2015 CRAIN’S DETROIT BUSINESS Page 27

From Previous Page Dynatrace had been located in Waltham and run by Van Siclen promises to the market and then before it was bought in 2011 as part Endeavor: Getting startups to next level live up to them,” said O’Malley, of Compuware’s efforts to diversi- ■ From Page 3 who told industry analysts and fy. Van Siclen was retained by customers soon after joining Paul to manage the business after New Economy Initiative, which re- that are least 3 years old and typi- firm is an immediate export candi- Compuware last summer that he it was bought and renamed as Com- ceives some of its funding from the cally have $2 million to $5 million date and they need to connect into would have a new product on the puware APM, and he and a large Miami-based John S. and James L. in annual revenue. They can be in a country, the can use Endeavor market in early January. team stayed in Massachusetts. Knight Foundation. any industry, but must be poised network to find a company. They Alan Radding, a tech industry The APM unit reclaimed its “Alberto (Ibargüen), the CEO of for high growth and at a point have capital connections. It is very journalist and popular IT blog- former name and its former Knight, says, ‘You have to see this where mentoring and training can much based on finding the best-in- ger, gave Topaz a good review, headquarters when it was split program we’re bringing into Mia- make an impact. class talent to connect with these saying it is a tool that will allow off from the mainframe business mi,’ ” said Egner, executive direc- “Lifestyle businesses are impor- companies so they can grow as fast younger IT professionals “to im- in December. tor of the New Economy Initiative tant, but they are not what Endeav- as possible.” Pasky also sees Endeavor as an mediately start doing meaning- And layoffs in January were a and president and CEO of the Hud- or is looking for,” said Joanna Har- opportunity to grow her leadership ful work with both distributed one-time event to get administra- son-Webber Foundation. “He tells me, ries, Endeavor vice president for team and that of other area busi- and mainframe systems and do it tive costs in line, said Van Siclen. ‘I’m finding self-made entrepre- U.S. and Canada. “We want firms nesses. She may mentor some En- in a way they immediately He said the company has begun neurs who are taking leadership po- where growing their company is deavor firms when appropriate, grasp.” hiring sales staff to fuel what is sitions in our community and I really a mission for them. We want New Hampshire-based Ptak As- don’t know them — and I pride my- people who light up at being able to but she is more excited to give her expected to be a sharp increase in team a chance to become mentors. sociates LLC, which provides self on knowing.’ ” make their business huge.” revenue over the next 18 months. “It’s a really good time for us to analysis of the IT industry, So Egner and others started talk- Interested firms will go through Compuware’s SEC filing in No- help them grow,” she said. “Strate- praised both Topaz and the spin- ing with Endeavor brass and were a screening process and then ad- vember projected Dynatrace rev- gic Staffing has this great young ning out of Compuware as a pri- impressed by what they saw, and vance through local and global se- enue would hit $420 million in leadership team, so what better vate business focusing strictly on 2016. Van Siclen says he expects it the results. In 2013, Endeavor-sup- lection panels and interviews. mainframes. way to help them mature and grow to hit $500 million in the next 18 ported companies generated $6.8 “Imagine a cross between ‘Shark to the next level than by having In a report issued after Topaz’s months and to grow another $250 billion in revenue; firms grow by Tank’ and ‘12 Angry Men,’ ” said them mentor a company?” release, Ptak said that “a newly million in the two years after that. an average of 68 percent after their Harries. And once a company leaves the privatized Compuware is setting “Thoma Bravo sees Dynatrace first year, and 400,000 jobs have Endeavor expects to select six to program, it is expected to partici- out to significantly impact the as their next growth engine,” he been created since 1997. eight firms for the first year. Each pate in mentoring the new cohort. mainframe marketplace,” and said. As a result, NEI invested $1 mil- will have an advisory board to help To find out more about that Topaz “establishes a brand Those numbers are projections lion to bring the program to Detroit, with growth challenges and a cus- Endeavor Detroit, email new direction for mainframe for organic growth. Van Siclen and the Grand Rapids-based Dick tom-designed program. [email protected]. product vendors” whose strength said further growth through ac- and Betsy DeVos Family Foundation in- “There is no formula or cookie Amy Haimerl: (313) 446-0416, is allowing “nonexperts to im- quisition is likely. vested another $500,000. cutter,” Egner said. “I see Endeav- [email protected]. Twitter: prove the operational efficiency Van Siclen acknowledges that “Nobody is filling this gap in the or as the ultimate connector. If a @haimerlad and performance of mainframe Dynatrace did a one-time round market,” Egner said. “We’re doing applications without becoming ex- of layoffs in January, which in- startup work and corporate support perts in the intricacies of main- cluded about 75 in Detroit, 100 in very well in the state, but nobody is frame functioning.” Boston and 50 in Europe, but he focused on high-growth potential, O’Malley said that while the said that was a move to focus the those $10 million to $15 million return of former customers can’t company more on sales while gross revenue companies that can be counted on to consistently trimming support staff. blow it out to $200 million. If we get boost quarterly numbers, a He said the layoffs included this right, the job growth will come steady stream of newer, more human resources, administra- on quickly.” nimble products to help main- tion and finance departments. And, in fact, Endeavor’s research frames perform better should “The layoffs should have been shows that the average high-growth help him meet his goal of not just done earlier. None of what we cut company employs eight times as stopping revenue declines as was muscle,” he said. “Our G&A many people as the average non- companies do more with PCs and (general and administrative) high-growth firm and 35 times as cloud-based computing, but actu- costs were too high, and we had to many as the average startup. ally growing them. cut them down. We had too many To launch the program, Endeav- To do that, he said, the compa- support staff and not enough or hired a local director: Antonio ny must communicate better salespeople for what we think are Luck, the former director of busi- with the newer generation of great products in hot markets. ness acceleration at the Michigan CIOs, and the best way is “We have streamlined our busi- Economic Development Corp. It also through its new, integrated so- ness, moving from a legacy data formed a local board of directors. cial media strategy. center, legacy back-office applica- Cindy Pasky, founder, president “New age CIOs know the tions and antiquated processes to and CEO of Strategic Staffing Solu- cloud, they know mobile, they a modern cloud-based application tions, will serve as chairman. know analytics. But they have Joining her on the board, in addi- been prejudiced against the infrastructure and business processes,” he said. tion to Egner, are: mainframe platform,” said O’- Ⅲ Thomas Groos, Van Siclen said the company partner, New Malley. “We need to educate City Light Capital has added about 20 to its sales staff York City-based these CIOs that mainframes can Endeavor De- in North America in the past 90 and board member of be agile and powerful, and that troit days and will be hiring another 20 and Marysville, Mich.-based they need to embrace them. Heartland Automation in the next six months, with a ma- “A social strategy can get us bet- Ⅲ Nate Lowery, jor expansion planned for soft- co-founder and ter awareness in the market than TM3 Systems ware development teams in CEO, Royal Oak-based we could ever afford,” he said. Inc Poland and Austria. ., and board member of the De- “We’re already measuring a signif- Vos Family Foundation He said no further layoffs are icantly better connection to cus- Ⅲ Raj Vattikuti, founder, South- planned. Currently, the company tomers. LinkedIn has been a valu- field-based Altimetrik and the Vattiku- employs about 1,400, he said, in- able tool for us. Every person in ti Foundation cluding about 250 each in Detroit this company uses LinkedIn daily. Ⅲ Steven White, chairman and and Boston. I blog a lot, including microblogs CEO, Detroit Renewable Energy, and “Detroit has had and will con- on Twitter. People in the industry board member of Downtown Detroit tinue to have a very important are shocked that we have the scale Partnership. role to play,” he said. of social presence we do.” One of the key challenges the In November, the research firm O’Malley declined to give spe- board faces in metro Detroit is a Gartner gave the unit then called cific employee numbers, “but we scale-up gap. The number of high- Compuware IPM Dynatrace what have more employees now than growth firms — those at least 3 it calls its magic-quadrant rating when we were sold,” he said. years old with at least 20 percent for top performance, making it the “We’re hiring. We’re adding to annual employment growth over only APM software vendor to get our sales team. We’re hiring a new the past three years — declined by the top rating five years in a row. worldwide sales manager, and 50 percent between 2007 and 2012, we’ve hired sales managers for According to a report last Au- according to Endeavor research. the U.S., South American and Eu- gust by International Data Corp., a To lose half of these types of ropean markets.” market intelligence firm, Dyna- firms in five years is critical for a trace ranked No. 3 for APM mar- city where the December unem- ket share in 2013, its 12 percent ployment rate was 12.2 percent, the Dynatrace beefing up trailing the 13.6 percent for CA metro area’s was 7.5 percent and Technologies and the 15.2 percent The announcement in Decem- the state came in 6.3 percent. The for IBM. ber that the Dynatrace business nationwide rate was 5.6 percent. Tom Henderson: (313) 446-0337, was moving to the Boston area Still, Endeavor has identified a [email protected]. Twitter: had less meaning than it might strong pool of potential participant @tomhenderson2 have seemed. businesses. It is looking at firms 20150209-NEWS--0028-NAT-CCI-CD_-- 2/6/2015 4:29 PM Page 1

Page 28 CRAIN’S DETROIT BUSINESS February 9, 2015 Blaker: TTi chief built up the family business, builds up people ■ From Page 3 From the ground up She changed the company’sname “I wasn’t going to let anything the company. Advocate for women to TTi the following year. And by stop me,” she said. In March, TTi plans to open a Rochester Hills-based TTi Global about 2011, it became TTi Global to By 1999, she had divorced again. workforce development training Blaker has parlayed her life expe- started as S&J Tech Data Service Co., reflect its international presence. Work-life balance was a challenge site in Afghanistan under its first riences into serving as an advocate launched in 1976 by Blaker’s father that Beth Chappell, president and government-backed contract. The for women’s rights. and mother, John and Shirley CEO of the Detroit Economic Club, also center will train men in automo- She helped form a metro Detroit Brzezinski. Gender hurdles chapter of the U.S. National Committee has faced. tive service and women to run au- Blaker joined the company three for UN Women a year ago to focus on Staffing services and training de- Her position as global services tomotive service businesses. years later as its first employee, af- gender-equality issues for women in velopment was starting to take off in vice president for AT&T in the early The company is investing ter taking accounting and business order to stop global violence against the mid-’90s, and Technical Train- ’90s required her $150,000 to open the site and the management classes at Oakland Com- women. The group takes on specific ing was positioned to grow with it, to travel around hope is that it will lead to con- munity College and Oakland University. Blaker said. the U.S. After her issues like human trafficking — At first, she proofed the automotive tracts from the U.S. government something that’s not only an issue The company provided vehicle twin sons were and governments in emerging service manuals written by her fa- technology service and repair in- born in 1991, overseas but also in Metro Detroit. ther, an aerospace electrical engi- markets around the globe to train She also signed the United Na- structors and course development Chappell, a sin- people in skilled trades. neer. for Ford and Chrysler Corp.’s training gle mom at the tions Global Compact CEO agree- This year, TTi also plans to She didn’t know the first thing centers. After years of working on time, began tak- ment, which lists actions to support launch software that helps compa- about cars — but she was interested. service manuals, Blaker said, she ing them and, a women’s empowerment. nies gauge skills gaps in employ- And she saw the job as a good oppor- could hold a conversation on vehi- couple of years Blaker mentors girls at East De- tunity because she could bring her cle technologies and see opportuni- later, their little ees and train them. troit High School through the Detroit infant son to work. ties to help customers. Chappell sister, on trips The software gives TTi prod- chapter of Women of Tomorrow, talk- As she gained technical knowl- Being as knowledgeable as possi- with her with the help from an au ucts it can sell multiple times and ing with the students on anger man- edge, Blaker moved up in the ser- ble is something that also helped pair. provides an opportunity for re- agement and taking them on field vice manual department and then Cindy Pasky, founder and CEO of She didn’t ask her employer for curring revenue, she said. trips to places like the Wayne Coun- took on oversight of accounting. Detroit-based permission to take her kids. She just “That’s major for a service com- ty jail to not only explore law en- It was hard working for family, Strategic Staffing did what she thought was right, she pany like ours.” forcement careers — but also to see Blaker said, recalling a tough climb Solutions. said. TTi expects to add 25 jobs to what can happen if they make one and numerous confrontations with “My personal “There were a lot of people who start at its headquarters to help bad decision. her father. “My dad ... never gave approach was al- just thought I was a terrible moth- support the new programs. Overseas, Blaker speaks to you any opportunities,” she said. ways to be over- er,” Chappell, now 57, said. But the Blaker said she expects the new women about her path to achieving “You had to grab them and run with prepared, so that kids were “great travelers and nev- programs to help TTi achieve 10- business success. Those addresses them.” when you er got sick until they were in 20 percent growth within 12-18 have been at times, “kind of scary,” Her father had established Techni- walked into a preschool.” months if the contracts come she said. cal Training Inc. as a division of S&J room, you create When she was on business trips, through as expected. During one speaking engagement in 1984, to assist dealerships in with women in rural India — an Pasky respect immedi- Chappell said, she was very careful training their service technicians. ately,” she said. to focus on the work that needed to area with frequent reports of vio- And, in 1990, the same year she di- Pasky launched her company, to- be done. Achieving critical mass lence against women — men walked vorced, Blaker had her eye on serv- day a $260 million international “The upside was that when the TTi is doing a good job of taking back and forth outside the open ing as its president. But she didn’t business, by focusing on the talent work was done, I could read bedtime advantage of some of the same op- doorway of the building, straining feel her dad would promote her, so needs of customers in the finance stories.” portunities that MSX International to hear. She felt intimidated by their she resigned. and utilities industries. To maintain that balance be- Inc. sees in providing training and presence, and so did her country Her father countered by asking “A good company, no matter how tween her personal and professional related services to dealerships, manager, who moved to sit next to her what she ultimately wanted, small, no matter who owned it, if lives, Chappell said she left AT&T said MSX President and CEO Fred her as she addressed the women, and when she told him “your job,” you could bring (finance and utili- and changed careers when her sons Minturn. Blaker said. he said that was fair. But he wasn’t ties customers) the talent, you had started school. The challenge for smaller com- She is now working with a local going to just hand it to her. the chance to do business with petitors like TTi is the need to cre- Jesuit priest and some of those same “If I thought he was a difficult them,” she said. Still expanding ate the critical mass to be truly women to get them trained in tailor- boss before that, he was even worse But there were few women in the global, with the ability to provide ing skills. Once they are trained, she after,” Blaker said, pushing her automotive industry in the early As she juggled single parenthood customers with the same consis- plans to pay for sewing machines to harder and questioning every deci- ’90s, Blaker said. again, Blaker continued to expand tent quality services in each coun- help them launch in-home business- sion she made. es. At times, she was humiliated by TTi globally, eventually into 25 try, Minturn said. It wasn’t until her father’s sudden men acting as if she knew nothing countries. TTi has a smaller customer list death in 1992 that she realized his or by making advances. Through it The Ford work expanded as TTi and global footprint than MSX, tough approach was by design. Finding a balance all, Blaker said, she focused on the also took over all technical training “but I do admire that they are She’d learned to think carefully Blaker may have felt work-life strengths she could bring. for Ford in Brazil. Starting in 1996, it working hard to try and amass as about decisions and look at situa- balance eluded her for years, but “Sometimes I think women are also established offices in Taiwan, many countries as they can ... in tions from all angles. “You just she seems to have finally found it. (more) patient in trying to under- Japan, Thailand, Mexico, Brazil, an attempt to deliver the services think that’s your dad being criti- When she isn’t busy with TTi, stand, looking at customers’ organi- Chile and Venezuela. global companies require,” he cal,” she said. “Really, it’s your dad speaking or volunteering, she and zations and understanding their In 2008, it added regional offices said. making sure you’re prepared and needs, anticipating them,” she said. in Europe and later expanded into her significant other can be found can handle any situation.” India and the Middle East. In 2010, on their Metamora farm, tending to Family legacy the thoroughbred horses they breed. Going global – with a baby TTi Global made its first acquisi- A new challenge tion, England-based Lorien Connect, a Blaker’s four boys are now in While the girls she mentors in TTi had been sending instructors market research and customer ser- their 20s and 30s. metro Detroit are most impressed A year after her father’s death, to China for a month at a time to vice training vendor for automak- Her middle two sons, Brendan with the level she’s achieved in run- Blaker’s mother named her CEO. provide technical training for fleet ers. and Kevin Dever, work at TTi. ning her own international compa- Blaker finally got a pay raise and customers of Ford Export. Blaker The company’s revenue has in- They are aided by a broader view ny, for the women overseas, the fact was able to quit her second job. proposed to Ford that her family’s creased from about $5 million in of the world and cultural aware- that she simply has a job is impres- Though the new role was chal- company establish a training pro- 1992 to a projected $110 million for ness they gained as they traveled sive, Blaker said. lenging, she enjoyed the interaction gram covering sales, parts and ser- 2014. TTi now employs 2,000 people with their mother to TTi’s opera- Seeing an example of a woman with customers, employees and peo- vice for its Chinese dealerships. globally, 300 of them in Michigan. tions, Blaker said. who works outside the home, and is ple in the training programs. Ford agreed. The company provides training Brendan, 34, was regional coor- successful and independent, is very “I felt I was using my talents in Once again, Blaker found herself services, staffing and recruitment dinator-Asia Pacific in TTi’s Thai- powerful for them, she said. the best way possible (and) loved facing a challenge. She’d remarried for training, technical services/ land office from 2009-2011 and In addition to working with the getting up for work,” Blaker said. late in 1992 and had another son, support, office, call center and engi- over the past four years has women from Bangalore, India, to Still, it was tough to lead the com- John. The only way to balance her neering positions and market reserved as managing director of launch tailoring businesses, Blaker pany and be a single mom to three roles as mother and CEO was to take search, primarily for automotive first India and then the Middle has funded a vocational program for boys ages 5-12. At times, she felt cer- him with her to China in 1994 — customers but also for clients in East. He returned home in Decem- Indian girls who didn’t finish high tain her sons hated her for not being along with baby food, diapers and a telecommunications, financial and ber to serve as a headquarters- school. The program is teaching home. She still made lunches when list of other baby gear and items that other industries. based financial analyst for the them to assemble lamps as a means she could and baked cookies on the weren’t yet available there. It counts large global companies company. of bringing in a small income. weekends. But at one point, one of She’d take her 6-month-old to including Ford, FCA US LLC, Volkswa- Kevin Dever, 30, has held mar- “The more we empower these her sons asked her why she couldn’t work when she could, amusing gen AG, Jaguar Land Rover and Navistar keting and client service roles for women ... they empower their chil- just be like other moms — home clients who loved babies, especially International Corp. as its primary cus- TTi since 2009 and today is global dren (and) make sure their kids get every night for dinner. boys. Other days, she left him with tomers. marketing manager. an education,” Blaker said. “When “They had to get through that and her Chinese housekeeper, asking Revenue was down from $118.5 Blaker’s oldest son, Justin Dev- you empower a woman, especially (see) that ... we didn’t have to be a her bilingual secretary to translate million in 2013, Blaker said, due to er, who already graduated from a in a country like that, you empower ‘normal’ family,” Blaker said. instructions for the day. the ending of several contracts, a culinary school, is now pursuing a whole nation.” Following her father’s death, As TTi expanded, Blaker took down year for automotive in Latin a degree in environmental re- Sherri Welch: (313) 446-1694, Blaker closed the money-losing S&J John with her all over the world un- America, and a slowdown in China. search. Her youngest, John Blak- [email protected]. Twitter: @sherri- service manual business. til he started kindergarten. But Blaker isn’t yet done growing er, is attending college. welch 20150209-NEWS--0029-NAT-CCI-CD_-- 2/6/2015 5:25 PM Page 1

February 9, 2015 CRAIN’S DETROIT BUSINESS Page 29 Beer: From one beer lover (Stroh’s), to many others www.crainsdetroit.com ■ From Page 1 EDITOR-IN-CHIEF Keith E. Crain GROUP PUBLISHER Mary Kramer, (313) 446-0399 Michigan craft beer accounted market is for small breweries and or [email protected] ASSOCIATE PUBLISHER Marla Wise, (313) 446- for only 6 percent of beer sold in neighborhood pubs.” 6032 or [email protected] the state in 2013, but it is growing EXECUTIVE EDITOR Cindy Goodaker, (313) 446- Last year, Infante represented a 0460 or [email protected] at a clip that’s forced the industry couple of Michigan Technological Uni- MANAGING EDITOR Jennette Smith, (313) 446- to mature, has attracted financiers versity graduates when they opened 1622 or [email protected] DIRECTOR, DIGITAL STRATEGY Nancy Hanus, and is ripe for expansion and con- Tripel Root Brewing in Zeeland, a city (313) 446-1621 or [email protected] solidation. that reversed a 100-year ban on al- MANAGING EDITOR/CUSTOM AND SPECIAL PROJECTS Daniel Duggan, (313) 446-0414 or Beer giants Anheuser-Busch InBev cohol sales in 2006. [email protected] NV and MillerCoors LLC continue to Infante said the neighborhood SENIOR EDITOR/DESIGN Bob Allen, (313) 446- 0344 or [email protected] dominate beer sales in the U.S., brewery is an underserved market SENIOR EDITOR Gary Piatek, (313) 446-0357 or with a 75 percent market share, that banks are eager to finance. [email protected] WEB EDITOR Kristin Bull, (313) 446-1608 or but craft brewers cut into that “Can you think of an industry [email protected] margin every year. that sees this kind of growth, 40 per- RESEARCH AND DATA EDITOR Sonya Hill, (313) 446-0402 or [email protected] Sales of craft beer grew 16 percent, 100 percent year-over-year WEB PRODUCER Norman Witte III, (313) 446- cent in 2014, compared to a 1.7 per- growth?” Infante said. “It’s amaz- 6059, [email protected] EDITORIAL SUPPORT (313) 446-0419; YahNica cent decline for the biggest U.S. ing.” Crawford, (313) 446-0329 beer brands, according to re- NEWSROOM (313) 446-0329, FAX (313) 446- searcher Symphony IRI Group. Sales 1687 TIP LINE (313) 446-6766 of Bud Light fell by 1.3 percent, and Friend or foe REPORTERS Jay Greene, senior reporter: Covers health care, Miller Lite plummeted 4.4 percent But that growth presents risk, insurance, energy utilities and the environment. in 2014, Bloomberg reported in Jan- said Bell, who operates the largest (313) 446-0325 or [email protected] Amy Haimerl, entrepreneurship editor: Covers uary. craft brewery east of Colorado. entrepreneurship and city of Detroit. (313) 446- Brewers like Detroit-based Atwa- “The big money is flowing, pri- 0416 or [email protected] Chad Halcom: Covers litigation and the defense ter Brewing are cutting into the big vate equity, investors, etc., is flow- industry. (313) 446-6796 or [email protected] players and looking to cut deeper. ing into the industry, and there’s Tom Henderson: Covers banking, finance, too much access to money right technology and biotechnology. (313) 446-0337 or Atwater is in the midst of a nearly [email protected] $25 million expansion plan, push- now,” Bell said. “It’s rapidly chang- Kirk Pinho: Covers real estate, higher education, ing the feel of the industry, and Oakland and Macomb counties. (313) 446-0412 or ing toward producing 300,000 bar- [email protected] rels of beer by 2020 compared to there’s going to be a plateau; when Bill Shea, enterprise editor: Covers media, the music stops and you don’t have advertising and marketing, the business of sports, 40,000 barrels in 2014. One barrel GLENN TRIEST and transportation. (313) 446-1626 or includes 31 gallons of beer. “I remember when Stroh’s was the brewery in Detroit and the Midwest,” said Mark a chair, it gets dicey and a bank or [email protected] brewer is going to get burned.” Dustin Walsh: Covers the business of law, auto Atwater generated $7 million in Reith, CEO of Atwater Brewing. Now the beer market has more of a taste for suppliers, manufacturing and steel. (313) 446- revenue last year and is expecting smaller breweries, such as Atwater. Grant said the “mom and pop 6042 or [email protected] mentality” of brewing is dying as the Sherri Welch, senior reporter: Covers nonprofits, a 55 percent growth rate in 2015 Peter Stroh died in 2002 at the to 26,000 annually. services, retail and hospitality. (313) 446-1694 or business of brewing matures and [email protected] and more than 100 percent in 2016. age of 74. His lasting legacy is pas- Founders is planning a $40.4 mil- Mark Reith, president and CEO, those without business acumen are ADVERTISING sionate championship of the river- lion expansion in Grand Rapids, setting themselves up for failure. said the expanding beer market front and the idea that it should be which is expected to boost produc- SALES INQUIRIES (313) 446-6052; FAX (313) has opened up room for smaller “With everything that’s happen- 393-0997 open to the public. He is memorial- tion to 900,000 barrels in the next ing in the industry, brewers need to SALES MANAGER Tammy Rokowski players, and abundant financing is ized along the downtown River- few years. SENIOR ACCOUNT EXECUTIVE: Matthew J. make decisions on who and what Langan opening the door to new markets. Walk with a bust and marker. Dexter-based Northern United Atwater is finishing a build out of they want to be in this business.” ADVERTISING SALES Christine Galasso, Joe Brewing Co., which operates North Grant said. “We are viewed as com- Miller, Sarah Stachowicz its Detroit brewery to expand ca- Peak Brewing in Traverse City and CLASSIFIED SALES MANAGER Angela Schutte, pacity to 100,000 barrels of beer and Bigger beer business petitors by the mega brewers, so (313) 446-6051 Jolly Pumpkin in Ann Arbor and CLASSIFIED SALES Lynn Calcaterra, (313) 446- is investing $9 million in a similar while people are making great Today, Michigan is one of the top Traverse City, is expanding to beer, the need to run the business 6086 facility in Austin, Texas, and in craft beer producers in the country. Midtown Detroit this year. AUDIENCE DEVELOPMENT DIRECTOR Eric Cedo North Carolina. with a keen financial eye has never EVENTS MANAGER Kacey Anderson There were 158 craft breweries in But for Northern United, the been greater.” CREATIVE SERVICES DIRECTOR Pierrette Dagg It also recently received licenses the state in 2014, up from 131 in process is slower as it bootstraps Last month, Anheuser-Busch SENIOR ART DIRECTOR Sylvia Kolaski to produce hard cider and distill MARKETING COORDINATOR Ariel Black 2013, according to the Boulder, its own expansion efforts. agreed to acquire Seattle-based liquor. SPECIAL PROJECTS COORDINATOR Keenan Colo.-based Brewers Association. Tony Grant said that while rev- craft brewer Elysian Brewing Co., its Covington “I remember when Stroh’s was Michigan craft breweries creat- enue is up 40 percent year over fourth craft brewer acquisition in SALES SUPPORT Suzanne Janik, YahNica Crawford the brewery in Detroit and the Mid- EDITORIAL ASSISTANT Nancy Powers ed an economic impact of more year, slow and steady growth is recent years. west,” Reith said. “Now that mar- PRODUCTION MANAGER Wendy Kobylarz than $1 billion in 2012, a number key to the brewer’s survival. The mega brewer bought its first ket has proliferated and you see PRODUCTION SUPERVISOR Andrew Spanos that is expected to rise, said Bart “We get jealous when we see peo- craft brewer in 2011, buying Chica- CUSTOMER SERVICE breweries continuing to innovate, Watson, chief economist at the ple that get to invest millions and go-based Goose Island for $38.8 mil- MAIN NUMBER: Call (877) 824-9374 appealing to different people, and Brewers Association. millions of dollars,” Grant said. “I lion. Last year, it bought Patchogue, or [email protected] it’s resonating.” Watson said Michigan’s new think a lot of people in small busi- N.Y.-based Blue Point Brewing Co. SUBSCRIPTIONS $59 one year, $98 two years. breed of brewers took advantage of ness, ultimately they’d like to do and Bend, Ore.-based 10 Barrel. Out of state, $79 one year, $138 for two years. the public’s culture shift toward things perfectly, but there’s also a Outside U.S.A., add $48 per year to out-of-state How Stroh fell Bell said acquisitions will con- rate for surface mail. Call (313) 446-0450 or more quality products. real pride in the struggle.” tinue as consolidation takes hold (877) 824-9374. Debt burden is what sunk Stroh. “Stroh’s went out of business be- Northern United sold 7,500 bar- of the craft brewing industry. SINGLE COPIES: (877) 824-9374 REPRINTS: (212) 210-0750; The company, which drew its lega- cause they had the same business rels of beer in 2014 and generated “Small brewers will continue to or Alicia Samuel at [email protected] cy back to brewing in Germany in model as Anheuser and Coors; revenue of $10 million. grow, but at the top, it’s going to TO FIND A DATE A STORY WAS PUBLISHED: the mid-1800s, bought a majority they couldn’t compete,” Watson Craft brewing is big business in consolidate,” Bell said. “Anheuser- (313) 446-0406 or e-mail [email protected] Schlitz Brewing Co. CRAIN’S DETROIT BUSINESS IS PUBLISHED BY stake in in 1982 said. “What we’re seeing from Michigan, and funding rapid expan- Busch isn’t happy about losing CRAIN COMMUNICATIONS INC. in an effort to go big because the small independent brewers is an sion efforts is new funding sources. market share, and those of us who CHAIRMAN Keith E. Crain middle ground for brewers was ability to differentiate; they have Founders sold a 30 percent stake PRESIDENT Rance Crain were at the beginning of the craft TREASURER Mary Kay Crain disappearing. different products and style, that to Mahou-San Miguel Group in Decem- brewing industry, we’re looking Executive Vice President/Operations The move made Stroh the third- has appeal. Even though the bar- ber to help fuel its expansion. San for exit strategies.” William A. Morrow Executive Vice President/Director of Strategic largest brewer in the U.S., with relage is significantly lower, the Miguel is the largest craft brewer in Bell’s will eventually be run by Operations Chris Crain revenue of $1.4 billion in 1984. But economic impact is greater to each Spain, founded in 1890. his children, he said. Executive Vice President/Director of Corporate Operations KC Crain the debt decimated its ability to state because these breweries are Atwater raised its funds He, Grant and Reith believe Vice President/Production & Manufacturing reinvest and it quickly began los- able to charge a premium for what through available debt financing Michigan’s brewers will be less in- Dave Kamis ing market share to Anheuser- Chief Financial Officer they are making.” and reinvestment of profits, Reith terested in selling to mega brew- Thomas Stevens Busch, Miller Brewing Co. and Coors Anheuser-Busch produces more said. ers. Chief Information Officer Brewing Co. than 150 million barrels of beer in Joseph Infante, an attorney for Anthony DiPonio “Competition is out there and G.D. Crain Jr. Founder (1885-1973) A price war in 1998 sent Stroh the U.S., Watson said. Conversely, Miller, Canfield, Paddock and Stone things are getting stickier, but in Mrs. G.D. Crain Jr. Chairman (1911-1996) sales and margins plummeting Michigan craft brewers produced PLC in Grand Rapids who leads the Michigan, this industry developed EDITORIAL & BUSINESS OFFICES: 1155 Gratiot Ave., Detroit MI 48207-2732; and the family sold its labels to Pab- nearly 600,000 barrels in 2013 and firm’s alcoholic beverage regula- during some tough times,” Bell said. (313) 446-6000 st Brewing Co. and Miller in 1999, in only 10.6 million barrels for the to- tion team, said despite the state’s “Michiganders take pride in the Cable address: TWX 248-221-5122 AUTNEW DET deals estimated at $400 million, ac- tal craft beer producers in the U.S. rapid growth, the market has plen- CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 beer produced in this state, and is published weekly, except for a special issue the cording to a Milwaukee Journal Sen- in 2014. ty of room for growth. that’s been a great asset to brewers.” third week of October, and no issue the fourth week of December by Crain Communications Inc. tinel report. In today’s market, the busi- But with the expansion of sever- “The industry is growing in two Reith agrees. at 1155 Gratiot Ave., Detroit MI 48207-2732. ness would have been worth $9 billion, al of the state’s largest craft brew- directions: Brewers like Atwater, “We sell to educated consumers, Periodicals postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send according to a July 2014 Forbes report. ers — Bell’s, Battle Creek-based Ar- Founders and Bell’s are growing, and they want the most innovative address changes to CRAIN’S DETROIT BUSINESS, Peter Stroh was named Crain’s cadia Brewing Co., Atwater, Grand seizing that growth at the top end, and best beer possible,” Reith said. Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in Detroit Business’s first Newsmaker Rapids-based Founders Brewing Co. but there’s still plenty of new brew- “The Michigan beer brand is valu- U.S.A. of the Year in 1986, just a few — barrels produced could surpass ers hitting the market every year,” able, and no one wants to give that Entire contents copyright 2015 by Crain Communications Inc. All rights reserved. months after the brewery closed — 1 million this year. Infante said. “Everyone thought up.” Reproduction or use of editorial content in any not for the beer company, but for Arcadia completed a $7 million the bubble was going to burst, but it Dustin Walsh: (313) 446-6042, manner without permission is strictly prohibited. the $200 million development of expansion in Kalamazoo in May hasn’t. The big guys are going to [email protected]. Twitter: Stroh River Place. 2014, expanding barrel production keep getting bigger, but the hot @dustinpwalsh 20150209-NEWS--0030-NAT-CCI-CD_-- 2/6/2015 4:16 PM Page 1

Page 30 CRAIN’S DETROIT BUSINESS February 9, 2015 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF JAN. 31-FEB. 6

These cotton men’s blue president at Ypsilanti ed. The project requires ap- jeans are stone-washed, Takata airbag transportation planning provals from the township, $5M VC backs have a team-colored ribbon firm Jacobsen/Daniels Asso- the Federal Aviation Adminis- stitched on the hem of the ciates LLC. tration and the Michigan De- right leg, and a team logo case headed Ⅲ Detroit-based General partment of Transportation. patch above a rear pocket Motors Co. added Linda Good- Ⅲ U.S. Sen. Debbie where the brand-name en, a former executive vice Stabenow of Michigan said quality control patch normally would be lo- for Fla. court president of Lockheed Martin the U.S. and Canada are cated. And they are popu- Corp., as a director, giving close to a deal for financing lar; at the moment, Lions court case consoli- the board a fifth woman and the New International jeans are sold out. dating dozens of po- second black member. Trade Crossing, the data collection Don’t worry, ladies, the A tential class-action planned $2.1 billion bridge NFL would never forget to lawsuits against Takata connecting Detroit and uality control for the first feature-length movie market to you. For the same Corp. and others for defec- COMPANY NEWS Windsor, according to AP. factory floor has project, “Old Fashioned,” in price, you can get “Ladies tive airbags will go forward Ⅲ Burroughs Inc., the Ply- Ⅲ In his State of the Coun- Q been a buzz phrase limited release Friday. Bootcut Cheerleader Jeans.” in Florida, not in Detroit mouth-based financial ser- ty address, Oakland County since W. Edwards Deming be- The film is expected to They’re 98 percent cotton nor in Pittsburgh, as sever- vices technology provider, Executive L. Brooks Patter- gan training American in- open locally at theaters in and 2 percent Spandex, just al automotive OEMs had said it acquired Pendum son said he will forward a dustry on statistical process Sterling Heights and Livo- like Jim Schwartz’s ego. hoped. The federal Judicial LLC, a Chicago-based resolution to the county control during World War II. nia this weekend. We know of no plans for Panel on Multidistrict Liti- provider of ATM services board asking for a 0.15-mill After 70 years of refine- The faith-based romance NFL jorts, but it may only gation ordered the Takata and equipment for finan- property tax reduction over story, set in a small college ment, is there still a market be a matter of time. products cases to go to the cial institutions. Terms the next 17 months. The town in Ohio, was set to for better quality-control U.S. District Court for the were not disclosed. county’s current property open in theaters last fall, equipment and processes? A Southern District of Florida. Ⅲ The board of Ann Ar- tax rate is 4.19 mills. until the owners learned Tap room on tap Ⅲ group of local venture capi- Tokyo-based Takata’s bor-based Advanced Pho- The U.S. economy can the much earthier “Fifty talists hopes so, having A public house and eatery North American sub- tonix Inc. agreed to merge grow faster by unshackling Shades of Grey” film was helped raise a funding round that the owners say will sidiary TK Holdings Inc. is with Blacksburg, Va.-based government burdens on set for its own big screen re- business, former Florida of $5 million for Sight Machine have the largest number of based in Auburn Hills, and Luna Innovations Inc. The lease Feb. 13. Gov. Jeb Bush told the De- Inc., which stores data from craft beers on tap in Oakland a former engineer has told combined firm will keep “Old Fashioned” will detroit Economic Club in his cameras and sensors on the County is set to open next a congressional committee the Luna name and be but on about 200 screens na- first major economic factory floor to provide real- month in Rochester Hills. that the design originated headquartered in Virginia. tionwide. The company speech as a 2016 Republican time cloud-based data on Rochester Tap Room is to from Automotive Systems Ⅲ San Francisco-based chose the new opening in presidential prospect. processes. open March 12 in the Papa Laboratories, Takata’s re- activist investor Marcato part for the Valentine’s Day Ⅲ Wayne County Execu- Sight Machine was found- Joe’s Gourmet Marketplace search and development Capital Management LLC is weekend, and for a chance tive Warren Evans said the ed in Ann Arbor in 2011, is plaza at 6870 N. Rochester unit in Livonia. urging Southfield-based to go head-to-head with county general fund “is in headquartered in San Fran- Road, in the site of the for- supplier Lear Corp. to split “Fifty Shades.” trouble” and could run out cisco and about to ramp up mer Luca’s Chophouse. its two divisions — electri- operations in a new facility The Toerings co-own Owner Missy Markevics, ON THE MOVE of money in 2016 unless Skoche, incorporated in cal and seating — into sepa- in Livonia. Investors in- 48, former part-owner of Ⅲ Detroit-based Ally Finan- cuts are made, AP reported. 2007, with filmmaker Rik rate companies for better Ⅲ clude the Houston-based Penny Black in downtown cial Inc. named Jeffrey Brown The Affordable Care Swartzwelder. shareholder value. Mercury Fund, which opened Rochester, said Rochester as CEO, succeeding Michael Act has directed $489 mil- Toering described the sto- Ⅲ The U.S. Marine Corps an Ann Arbor office in Oc- Tap Room will have 60 taps Carpenter, who is retiring. lion to Michigan over the ry as one of romance, sec- re-enlisted its 67-year-old ad- tober; Ann Arbor-based for craft beer and sparkling Brown, 41, was president last five years, ranking the ond chances and personal vertising relationship with Michigan eLab; Ann Arbor- wine. Markevics’ partners and CEO of Ally Dealer Finan- state 14th-highest in receiv- healing with some faith- New York City-based J. Wal- based Huron River Ventures; include Mike LaBranche, 48, cial Services. Carpenter, 67, ing funds, a study issued by based elements and some ter Thompson, but the parent and Bloomfield Hills-based former manager of Clinton had been CEO since 2009. the Ann Arbor-based Center mainstream appeal. U.S. Navy had yet to decide Orfin Ventures. Township-based Great Bara- Ⅲ Livonia-based battery for Healthcare Research & Incidentally, Toering is- on the future of its long rela- Sight Machine wants to boo Brewing Co., and Travis maker A123 Systems LLC Transformation shows. n’t the only one with a day tionship with Detroit ad Ⅲ Detroit moved up two double its Michigan staff Waynick, 37, former execu- named Brad Frederick as agency Lowe Campbell Ewald. from nine over the next job as a lawyer in his fami- tive chef for Matt Prentice CFO. Frederick, formerly spots last year to No. 27 in ly; Toering’s brother is Doug LCE has had the Navy’s re- the Hotels.com annual rank- year. So far, the company is Restaurant Group and Andi- CFO at Southfield-based cruiting ad contract since in 10 factories collecting Toering of the Toering Law amo Restaurant Group. Chassix Inc., replaced John ing of the top 50 U.S. travel Firm PLLC in Troy. 2000; it was last renewed for destinations. Las Vegas led data. The 6,000-square-foot Patel, who left the company. five years in 2009. restaurant also will offer a Ⅲ the ranking. Omar Khan, M.D., was Ⅲ Waterford Township- Ⅲ menu of throwback cock- appointed CEO of Wayne The Michigan Depart- Film company taking on The ‘dad jeans’ end zone? based Premier Creative ment of Financial and Insur- tails and pub foods. State University Physician Group, a dba of Premier Enti- The increasing array of Group, replacing Robert ance Services suspended the ‘Fifty Shades of Grey’ sports-themed merchandise ties Inc., was acquired by licenses of Alia Bahoora and Frank, M.D., who was asked Orlando, Fla.-based Enter- Whether it’s holding out — including items embla- $25,000 donation helps to leave in November for her four Assurity Insurance for true love, or looking for zoned with the logos of the tainment Technology Part- agencies in Harper Woods push for rape kit testing unspecified reasons. Khan ners. Terms of the deal, the financing and market- Detroit professional teams is chairman of the Wayne and Royal Oak for state law The campaign that which closed Dec. 31, were ing window to propel an in- — sometimes yields some State School of Medicine’s violations. It also issued die film to success, Gordon amusing finds. launched last month to not released; the local com- cease-and-desist orders department of neurology. pany is now operating as Toering believes good things Crain’s sports reporter raise $10 million for testing Mark Juzych, M.D., WSU against two other agents can come from waiting. Bill Shea opined in his blog of roughly 11,000 unopened Premier Event Technology. for lacking proper educa- ophthalmology department Ⅲ Detroit-based Blue Cross Toering, 51, an alumnus last week on the phenome- rape kits in Detroit recently Kresge Eye Insti- tion and licensure. chair and Blue Shield of Michigan has Ⅲ of the University of Michigan non of National Football got a surprise gift from un- tute director, was named Detroit Tigers slugger taken steps to investigate Law School and a partner League merchandise of the likely donors. UPG’s chief medical officer. Victor Martinez was sched- whether its members’ per- practicing business con- denim variety. Yep, we’re Facebook COO Sheryl Ⅲ Delphi Automotive plc an- uled for surgery on his left sonal information was tracts and bankruptcy and talking about men’s “Grid- Sandberg and her husband, nounced several board knee after injuring it during breached in a cyberattack of insolvency law at Warner iron Classic Jeans.” They Dave Goldberg, CEO of web- changes, including the re- his offseason workout pro- Indianapolis affiliate Anthem Norcross & Judd LLP in Grand retail for $23.99 on based survey provider Sur- tirement of its chairman, gram, AP reported. Martinez Blue Cross Blue Shield. Rapids, and his wife, Sue, NFLShop.com, a steep dis- veyMonkey, made a $25,000 John Krol, effective March 1. missed the 2012 season after Ⅲ Detroit-based FutureNet own 50 percent of Skoche count from the original list donation to the Enough SAID Krol, former CEO of DuPont injuring the same knee. Group Inc. could land as much Films, which rolled out its price of $58.95. (Sexual Assault in Detroit) Co., will be replaced by Rajiv as $135 million of new gov- campaign. Gupta, a current board mem- ernment perimeter security OBITUARIES National publicity for the ber and former CEO of Rohm and software business in In- campaign attracted the at- and Haas Co. Kevin Clark, who Ⅲ Daniel Krichbaum, for- dia over the next few years, tention of the couple, said will succeed the retiring mer executive director of after signing an agreement Peg Tallet, chief community Rodney O’Neal as Delphi CEO the Michigan Department of with the state of Gujarat. engagement officer for the on March 1, also will join Civil Rights and former pres- Michigan Women’s Founda- the Troy-based auto suppli- ident of the Livonia-based tion, which is leading the er’s board of directors, as OTHER NEWS Citizens Research Council of campaign. More than will Tim Manganello, former Michigan, died Feb. 3. He $825,000 has been con- CEO of BorgWarner Inc. Ⅲ The Ann Arbor City was 72. tributed to the public-pri- Ⅲ Genelle Allen, a former Council approved plans Ⅲ Ken Mason, a partner vate campaign raising interim CEO and deputy with Detroit-based DTE En- and director of project funds to test the rape kits, CEO of the Wayne County ergy Co. for a roughly 14- management for South- COURTESY OF SKOCHE FILMS which were found un- Airport Authority, was named acre solar farm at Ann Arbor field-based real estate firm Gordon Toering (seated at far right) watches on the set of “Old opened in a Detroit Police De- a Wayne County assistant Municipal Airport in Pitts- Plante Moran Cresa LLC, Fashioned” during shooting in Ohio. partment storage unit. executive. She was a vice field Township, AP report- died Jan. 25. He was 42. DBpageAD_DBpageAD.qxd 2/6/2015 10:05 AM Page 1

NOMINATIONS 12:23(1 To make a nomination, please visit crainsdetroit.com/nominate

Healthiest Employers Crain’s 20 in their 20s NOMINATION Hurry! NOMINATION DEADLINE: FEB. 16 Closing soon. Publish date: June DEADLINE: FEB. 13 Publish date: June 1 Is your workplace the healthiest in Michigan? Do you know a 20-something who is someone to watch? Crain’s 20 in their 20s This award takes a look at the best recognition program seeks young professionals who are making their marks in practices used by employers across the region. This awards program is a great way to recognize the hard work of the state toward the goal of creating local rising stars, and at the same time further propel their careers. a healthy workplace. It’s free to enter. Winners will have their wellness efforts recognized as part of a print Crain’s 20 in their 20s supplement to run in Crain’s in June. They will also be featured in a video NOMINATION series as well as honored at an event on Wednesday, April 22, 2015 at DEADLINE: MARCH 9 Henry Ford West BloomÀ eld Hospital in BloomÀ eld Hills. Publish date: May 25

Crain’s General and In-House Counsel Awards Award categories include: NOMINATION CFO of the Year - This award is open to those with the title of CFO or DEADLINE: FEB. 16 executives who hold duties generally considered to be those handled by a CFO. Recognition categories will include public, private and government/ Publish date: April 27 nonproÀ t and will be segmented by revenue size. Crain’s General and In-House Counsel Awards will honor the best Rising Star – This award will recognize up-and-coming À nancial executives. legal minds working inside public, private, nonpro t and government À CFOs are not eligible, but others in the À nance department are. Eligibility organizations throughout Michigan. includes positions that report to a CFO such as analysts, managers and vice Award categories include: General Counsel of the Year, Rising Star presidents who oversee À nancial matters – and will likely be a CFO someday. and Pro Bono.

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