20140714-NEWS--0001-NAT-CCI-CD_--.qxp 7/11/20146:28PMPage1 ©Entire contentscopyright2014byCrainCommunicationsInc.Allrightsreserved and based Crain’s panies. Sourceshavetold with severalhealthcarecom- er, affiliationoracquisition Crittenton hasexploredmerg- hospital board. recommendations tothefull and medicalstafftomake committee ofboardmembers about apotentialsale. systems toinitiatediscussions vited severalunnamedhealth pital confirmedtheyhavein- with the254-bednonprofithos- sale. Inastatement,officials Center based which isownedbyDallas- systems tobeginsaletalks Crittenton inviteshealth conquered theworld,Page23 Small firmstellhowthey brings developmentsavvy RiverFront Conservancyboss out amicrobreweryattrack Hazel Park’s newplan:Trot serious estateplanning Fair Lanepreparesforsome Page 11 hiring, seeking and stripes in are earningtheir How companies Page 11 hiring, seeking and stripes in are earningtheir How companies NEWSPAPER www.crainsdetroit.com Vol.30,No.28 This JustIn Second Stage MICHIGAN BUSINESS Page 3 Over thepastseveralyears, Crittenton hasformeda Crittenton HospitalMedical VETERANS INTHE VETERANS INTHE Detroit MedicalCenter McLaren HealthCareCorp. Tenet HealthcareCorp. in RochesterHillsisfor they includeFlint- CRAIN’S WORKPLACE WORKPLACE — JayGreene , say permitrequeststodrill state regulatoryofficials company executivesand state permits. mented bytrendswith largely lackluster. gas explorationindustryis tion ofMichigan’soiland Township, theout-statepor- Shelby TownshipandScio the landscapeincommunitieslike in metroDetroit. new oilwellsarebothontherise mineral rightsandpermitstodrill on riseinmetroDetroit Oil andgasexploration of high-qualitychocolate—or,tobemoreprecise,roller-driedwholemilk. From itsnewplantinDetroit,VernDaleProductswillpumpthesecretsauce of high-qualitychocolate—or,tobemoreprecise,roller-driedwholemilk. From itsnewplantinDetroit,VernDaleProductswillpumpthesecretsauce Oil andgasexploration The shiftisbestdocu- But asnewpumpsbegintodot Lease dealsforlandowners’ $20M betonloveofchocolate $20M betonloveofchocolate CRAIN’S DETROITBUSINESS B Y C HAD H ALCOM ISTOCK PHOTO technology. spot withnewseismicimaging them cheaptodrillandeasier relatively shallowdepths,making has yieldedmodestoildepositsat east Michigan.TheDetroitarea the pasttwoyearstowardSouth- new wellshavebeenmovingover JULY 14–20,2014 orScc s! s ce Don’t missyour of chanceto bepart Suc Your Your Mission. Your Story. Exploration companieshave obtained 20permitsforwells in thefive-countyregionof Wayne, Oakland,Macomb, Washtenaw andLiv- division ofthe ingston sofarin2014,out of Oil,GasandMinerals, data fromthestate of 86totaldrillingpermits statewide, accordingto See Exploration,Page34 Michigan Office a to comebackfor comeback Homecoming invites ‘expats’ F F Dale. Johnsondeclinedtonamethecustomer. late, saidDaleJohnson,presidentandownerofVern- tomer, oneofEurope’stopmakerspremiumchoco- ity chocolatewillcontinuetogrow. — acriticalingredientinthosecolorfullywrapped Dale. Johnsondeclinedtonamethecustomer. late, saidDaleJohnson,presidentandownerofVern- tomer, oneofEurope’stopmakerspremiumchoco- ity chocolatewillcontinuetogrow. — acriticalingredientinthosecolorfullywrapped to expand dried-milk output VernDale’s plant newDetroit to expand dried-milk output VernDale’s plant newDetroit Johnson worked here—andstillthinkof here, wenttoschoolhereor born inmetroDetroit,grewup “expats” —peoplewhowere tion-only audienceprimarilyof venues Sept.17-19withaninvita- ing willbeiniconicDetroit ing.” Theinauguralhomecom- calling “TheDetroitHomecom- convener oftheinitiativeweare slated toemergefrombankruptcy. ex-Detroiters inthecityasitis multiyear initiativetore-engage was toannounceMondayanew, in Detroit. Gwen Butleraredoingthesame land. The newplantcomesattherequestofitslargestcus- VernDale usesabygoneprocessofmakingdriedmilk The newplantcomesattherequestofitslargestcus- VernDale usesabygoneprocessofmakingdriedmilk Crain’s DetroitBusiness Detroit MayorMikeDuggan They’re cominghome. Brian Owens,BillMartinand LeBron JamesdiditinCleve- Inc. Inc. for premiumchocolate. for premiumchocolate. amily-owned Detroitbusiness amily-owned Detroitbusiness has $20millionridingontheAmericanpalate has $20millionridingontheAmericanpalate Contact: 2014 Giving Guide Crain’s Crain’s that theAmericanappreciationforqual- that theAmericanappreciationforqual- The plantisanall-inbetonthehunch the SouthfieldFreeway,inmid-August. on WeaverStreetinwestDetroit,near will openanew82,000-square-footplant grocery storecheckoutline. chocolate barstypicallyfoundinthe creamier tastethantheAmericanmilk chocolates withEuropeannamesanda The plantisanall-inbetonthehunch the SouthfieldFreeway,inmid-August. on WeaverStreetinwestDetroit,near will openanew82,000-square-footplant grocery storecheckoutline. chocolate barstypicallyfoundinthe creamier tastethantheAmericanmilk chocolates withEuropeannamesanda CRAIN’S DETROITBUSINESS CRAIN’S DETROITBUSINESS B B The roller-driedwholemilksupplier The roller-driedwholemilksupplier [email protected] or(313) 446-6032 Y Y D D USTIN USTIN annual nonpro is a W W ALSH ALSH P Detroit as“home.” Chicago-based Michigan High School UBLISHER VernDale Products VernDale Products She graduatedfrom Butler isaperfectexample. See Chocolate,Page36 Mary Kramer See Homecoming,Page33 and nowispresidentof fi ’ t guide! $2 acopy;$59year NOTEBOOK S and the Capri CapitalPart- KENNY CORBIN University of Mumford ® 20140714-NEWS--0002-NAT-CCI-CD_-- 7/11/2014 5:26 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS July 14, 2014

MICHIGAN BRIEFS Whirlpool to buy $1B stake in Italian appliance maker CORRECTIONS Steelcase heir’s philanthropy for GR didn’t sit still Ⅲ A box on Page 4 of the July 7 is- Benton Harbor-based Whirlpool sue should have included Chrysler Peter Wege, the son of the founder of Grand from the U.S. Green Building Council. Corp. agreed to pay about $1 billion Group LLC and its $6 million com- Rapids-based Steelcase Inc., used his office furniture “I want to be remembered as one of the people who for a controlling stake in Italian ap- mitment among the funders that fortune on philanthropy throughout Grand Rapids tried to wake up the country on the environmental pliance maker Indesit Co., its largest are supporting the Detroit Institute for decades, a civic altruism that continues even af- problems,” Wege said in 2004, according to The Grand acquisition since buying former ri- of Arts’ “grand bargain” but ter his death July 7 at age 94. Rapids Press. “I’m doing it for my children and my val Maytag Corp. eight years ago, haven’t yet said how the funding As Steelcase’s largest shareholder, Wege — a fer- grandchildren. It’s got to be taken seriously this time.” Bloomberg News reported. will be administered if approved vent environmentalist — was able to commit mil- Aquinas College officials estimate that Wege’s do- “This will ideally position us for as part of Detroit’s bankruptcy lions of dollars toward “green” causes. He retired as nations topped $46.5 million over the years. sustainable growth in the highly plan of adjustment. vice chairman of the Steelcase board about a decade As co-chairman of a committee formed to commis- competitive and increasingly glob- Ⅲ A story in the July 7 edition ago to work on the Wege Foundation, which he creat- sion a major work of public art for Grand Rapids’ al home appliance market in Eu- about AdAdapted Inc. should have ed in 1967. It has given away millions, much of it in new city-county complex downtown, Wege helped rope,” Whirlpool Chairman and said the idea for the Ann Arbor his hometown. bring Alexander Calder’s stabile, “La Grande CEO Jeff Fettig said in a statement. company came from co-founder In 1998, he created a word and then wrote a book Vitesse,” to Grand Rapids in 1969. The acquisition follows Whirl- Mike Pedersen and not his part- called Economicology —combining “economics” and At Meijer Gardens, named for Meijer Inc. founder pool’s deal last year to buy a majori- ner, Molly McFarland. “ecology” — that spelled out his ideas about corpo- Fred Meijer, visitors will find the Wege Nature Trail ty stake in Hefei Rongshida Sanyo Ⅲ The top local executives listed rate environmental responsibility. He donated $20 and the Wege Library. Electric Co. for about $552 million as for Lochbridge on Crain’s list of million toward the new Grand Rapids Art Museum Rachel Hood, executive director of the West Michi- the appliance maker expands be- the largest Michigan mobile app building, which opened in 2007, on condition that it gan Environmental Action Council, told MLive.com, yond its home market. Whirlpool developers in the July 7 edition receive Leadership in Energy and Environmental “Peter’s voice was unique in saying that business derived 16 percent of its sales from should not have included Com- Design — better known as LEED — certification and environment can work together.” Europe, the Middle East and Africa puware Corp. CEO Robert Paul. last year, compared with 54 percent Lochbridge is Compuware’s for- from North America. Inc. plans to close campuses in Berrien County woman alleged to three-year grant for $700,000. mer professional services divi- Kalamazoo and Grand Rapids that have defrauded senior citizens out Ⅲ The website Simple Dollar sion, which was sold to Marlin Eq- ICH CELLANEOUS operate under the name Everest of millions of dollars through a ranked Kalamazoo — home of uity Partners in January. M - College as part of a plan to close a Ponzi scheme while employed as a Western Michigan University and Ⅲ Former Steelcase Inc. executive dozen campuses in 11 states, The licensed investment adviser at the Kalamazoo College (well, where food, better people, everyone’s a Jim Stelter, now CEO of Inscape California-based company reached Diversified Group Advisory Firm LLC. would it be, after all?) — ninth on friend; all are welcome where the Corp. near Toronto, said his compa- an agreement with the U.S. Depart- Ⅲ Mid Michigan Community Col- its list of the top 10 “Most Afford- compass ends.” Loses something in ny will send some business to his ment of Education after it failed to lege is starting a plastics engineer- able College Towns.” the translation to print, no doubt. former hometown. Grand Rapids- provide adequate paperwork and ing technology program this fall Ⅲ Traverse City now has its own based Genesis Seating will produce a comply with requests to address on its campus in Harrison north of song, the Traverse City Record-Ea- Find business news from new line of chairs, MLive.com re- concerns about the company’s Mt. Pleasant, Plastics News report- gle reports: “Take Me There” by around the state at crainsdetroit ported. Stelter said Inscape is practices. ed. The college has been develop- The Hacky Turtles. The Traverse .com/crainsmichiganbusiness. launching its chair business there Ⅲ Michigan Attorney General ing curriculum and laboratory City Tourism visitors group says the Sign up for the Crain’s Michi- because of the area’s supply chain. Bill Schuette authorized felony space since mid-2012, when the Na- song is a “wistful celebration” of gan Morning e-newsletter at Ⅲ For-profit Corinthian Colleges charges against Mary Faher, a tional Science Foundation awarded a TC, with lyrics including “Great crainsdetroit.com/emailsignup.

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July 14, 2014 CRAIN’S DETROIT BUSINESS Page 3 Hazel Park’s new run at success includes microbrewery Inside

BY BILL SHEA popularity over the past 25 years. CRAIN’S DETROIT BUSINESS The track, which opened in 1949, has lost $1 million annually since The reintroduction of thorough- 2004 but is on pace to break even bred racing at Hazel Park Raceway since launching weekend thorough- this year after a 30-year absence is bred races on June 27, said Dan Ad- predicted by the track’s manage- kins, vice president at Southfield- ment to reverse a decade of finan- based real estate developer Hartman cial losses. and Tyner Inc., whose owners also To further boost the bottom line, own Hazel Park Raceway. they’re also seeking to add a micro- Hazel Park last raced thorough- brewery and sports bar at the track’s breds in 1984, converting in 1985 to unfinished casino adjacent to the full-time harness racing. The To get back on track after 5/8-mile oval at the southwest cor- Michigan Gaming Control Board ap- a decade of losses, Hazel ner of 10 Mile and Dequindre roads. proved thoroughbred racing in How Skidmore Studio stayed Park Raceway is returning It’s all part of an effort to stave off to thoroughbred racing. January for Hazel Park and mounting losses that have reflected upright in downturn, Page 4 JOHN SOBCZAK a general decline in horse racing See Hazel Park, Page 37

Company index Mark Wallace: A real estate These companies have significant mention in this background week’s Crain’s Detroit Business: but limited Altair Engineering ...... 22 fundraising Altarum Institute ...... 13 experience Ann Arbor Spark ...... 35 ARC Supply Chain Solutions ...... 25 Autoliv ...... 22 Beringea ...... 22 Bissell Homecare ...... 22 Detroit Regional Chamber ...... 7, 13 Detroit RiverFront Conservancy ...... 3 Essential Bodywear ...... 26 Fast Hands Hockey ...... 25 FISECx ...... 15 Conservancy General Motors ...... 22 George P. Johnson ...... 22 Hazel Park Raceway ...... 3 Henry Ford Estate-Fair Lane ...... 3 CEO brings a Inforum Center for Leadership ...... 18 Inteva Products ...... 22 JetCo Solutions ...... 16 Jordan Development ...... 34 development Kaufman Financial Group ...... 22 Keith King & Associates ...... 15 Lear ...... 22 LG Chem ...... 24 background Marx Layne Public Relations ...... 10 JACOB LEWKOW Metaldyne ...... 22 “There has been strong interest expressed for our plans to restore, reimagine and reopen Fair Lane,” said Kathleen BY SHERRI WELCH Mullins, CEO of Henry Ford Estate Inc. MGM Grand Detroit ...... 11 CRAIN’S DETROIT BUSINESS Michigan Veterans Affairs Agency ...... 13 Michigan Women’s Commission ...... 18 Veteran real estate developer Mindo Chocolate Makers ...... 28 and property manager Mark Wal- MSX International ...... 22 lace is on a path to becoming the Northville Downs ...... 37 Sue Mosey of Detroit’s waterfront. NSF International ...... 22 Last week, the Detroit RiverFront Estate plan: Oakland University ...... 6, 7 Conservancy named Wallace, a De- O’Keefe & Associates Consulting ...... 29 troit-based director with Hines Inter- Penske Logistics ...... 10 ests LP, as its next president and Rickman Enterprise Group ...... 16 CEO. Rossetti Associates ...... 23 He’ll join the conservancy in mid- Sanders Solutions ...... 16 August, succeeding Faye Alexander SET Enterprises ...... 16 Fair Lane fixup Skidmore Studio ...... 4 Nelson, who led the organization TD Industrial Coverings ...... 27 for more than a decade before leav- TI Automotive ...... 22 ing in February to become presi- TRW Automotive Holdings ...... 22 dent of the DTE Energy Foundation VernDale Products ...... 1 and vice president of public affairs Capital, rebranding efforts set to revive historic site VetBiz Central ...... 16 for Detroit-based DTE Energy Co. Wayne State University ...... 23 Wallace, 37, will oversee the BY SHERRI WELCH since it transferred to the independent nonprofit Wellco ...... 29 maintenance and programming of CRAIN’S DETROIT BUSINESS Henry Ford Estate Inc. and came under manage- West Bay Exploration ...... 34 the RiverWalk, help secure access Whirlpool ...... 12 ment by the same team that operates the Edsel & to properties still needed to com- ince its spinoff from the University of plete the five-mile span, manage Eleanor Ford House in Grosse Pointe Shores. Michigan-Dearborn a year ago, the Henry riverfront programming and the At the same time, development of a busi- same along the Dequindre Cut SFord Estate-Fair Lane site has fallen ness and visitor program and branding plans greenway. That’s along with silent, except for sounds of occasional visitors Department index fundraising responsibility for the to the grounds and the Rouge River as it cas- — and fundraising for a $40 million-plus cam- BANKRUPTCIES ...... 7 RiverWalk — an area where Wal- cades down man-made falls. paign to support capital projects, programs lace has limited experience. BUSINESS DIARY ...... 30 But a rush of planning for the Dearborn and an endowment — are underway. The But he also will become the con- buildings have been closed to the public since CALENDAR ...... 31 servancy’s ambassador to help property has been taking place quietly in the 2010, but the grounds have remained open, CLASSIFIED ADS ...... 33 spur economic development along background. KEITH CRAIN...... 8 the riverfront, working with the and the plans are meant to re-energize the es- And things are about to get louder. LETTERS...... 8 Detroit Economic Growth Corp. and tate for public tours. This month will see the launch of the first MARY KRAMER ...... 11 See Wallace, Page 36 major capital repairs at the Dearborn estate See Fair Lane, Page 34 OPINION ...... 8 OTHER VOICES ...... 9 Do you know the muffin maker? PEOPLE ...... 30 THIS WEEK @ Chelsea Milling Co. grinds out 130 million pounds RUMBLINGS ...... 38 of Jiffy Mix a year. Learn more about its plan to WWW.CRAINSDETROIT.COM keep sales rising at crainsdetroit.com/video STAGE TWO STRATEGIES ...... 29 WEEK ON THE WEB ...... 38 CDB/DAVID HALL 20140714-NEWS--0004,0005-NAT-CCI-CD_-- 7/11/2014 1:46 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS July 14, 2014 Skidmore’s shift to direct client work leads it through downturn, to growth

BY BILL SHEA CRAIN’S DETROIT BUSINESS

An involuntary shift in business philosophy during the recession BUSINESS CONDITIONS CAN CHANGE kept Detroit-based advertising and AS QUICKLY AS THE WEATHER. design firm Skidmore Studio afloat, and the agency has embraced the We can help. When businesses face the changing demands of change to fuel new revenue and hiring growth. growth, purchasing goods, or making payroll, they require a strong, When Skidmore opened down- yet flexible solution. Our asset-based lending solutions can be the town as a design agency in 1959, it answer ... whatever the climate. primarily worked with the large ad houses to provide images of Contact me today! cars and trucks. Working mostly as a vendor for 888.999.8050 other ad agencies was the business Matt Dekutoski strategy for a half century until the collapse of the domestic auto industry a few years ago. The sub- sequent agency contraction, and PHOTOS BY KENNY CORBIN On the wall of a brainstorming room in Skidmore Studio’s Detroit office hang slashed marketing budgets, forced prints of Leo Skidmore’s 1960s pen-and-ink automotive illustrations — which, at Skidmore to then rely on its hand- the time, cost more than the vehicles themselves. ful of direct clients. Skidmore’s direct client work is which Smith said accounts for that first project out of the park with now about 65 percent of its busi- about 20 percent of Skidmore’s sound strategy, solid execution and Exceptional Leadership. ness, with the rest being agency business. clarity of creative. Since then, we’ve Delivered. work, said owner and CEO Tim The relationship began because leaned on them more and more for Smith. Prior to 2010, it had been of the traditional people-who-know- an ongoing stream of creative,” said about 60 percent agency work. people within the ad business, Sean Gleason, chief marketing offi- “It was the direct work that al- Smith said, and the restaurant cer and senior vice president at lowed us to keep the doors open,” chain last year called off a national Dave & Buster’s, via email. Smith said. agency search. It wanted Skidmore Other advertising firms are im- Revenue last year rebounded to as its agency, Smith said. pressed with Skidmore’s ability to $5 million, and this year is expect- Skidmore initially did a single stick it out during a time that ed to reach $7 million for the 30- $12,000 project for the chain. That claimed many small agencies, and person agency, he said. has blossomed into doing its TV to thrive in a marketing climate “We’re just almost back to pre- creative, in-store promotions, that’s improved but still somewhat 2007 numbers,” Smith said. some digital concepts and the full austere. A major source of that resur- campaign for the upcoming fall “It is great to see them doing gence was its hiring last year as football season. well and to see them back in Michigan’s Premier Retained agency of record by Dallas-based “They came in to help us about a Executive Search Firm restaurant chain Dave & Buster’s, year ago on a project and knocked See Next Page

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The best prices on new, used and remanufactured office furniture. Grand Rapids l Lansing Jackson l Detroit 877.698.6250 A major reason that Skidmore Studio survived the recession was that it became the agency of record for the www.kentwoodoffice.com Dave & Buster’s restaurant chain. CEO Tim Smith says direct client work “allowed us to keep the doors open.” 20140714-NEWS--0004,0005-NAT-CCI-CD_-- 7/11/2014 1:46 PM Page 2

July 14, 2014 CRAIN’S DETROIT BUSINESS Page 5

From Previous Page from a loft space in Royal Oak to Smith’s, and plenty of Detroit-cen- walled-off room where the agency It diversified from primarily au- nearly 10,000 square feet on the en- tric and client account decoration produces brochures, prints, posters tomotive to ensure survival, and at Detroit. The ad business is tire fourth floor of the Dan Gilbert- in the exposed-brick space. and other physical imagery. one point Skidmore produced the healthier, but margins are still a owned Madison Building at 1555 A living room-style brainstorm- “We still do things old school,” VHS box cover packaging for the challenge,” said Kelli Coleman, ex- Broadway St. — from which Smith’s ing room is decorated with prints Smith said. first home video for the original ecutive vice president of commu- corner office overlooks nearby Com- of Leo Skidmore’s original 1960s “Star Wars” trilogy, and other nications for Southfield-based ad One thing Skidmore doesn’t do erica Park. pen-and-ink automotive illustra- classic films. agency GlobalHue. is digital or social media work. Thanks to the new clients, and tions — gorgeous hand-drawn and Skidmore began adding arts and In the past six months, Skid- “We take that to those who are anticipated new work, five new colored pictures on canvas that, at culture nonprofit clients in the more has added Wal-Mart, American specialists in that area,” Smith work stations are being added to the the time, cost more than the vehi- 2000s. It has done work for the De- Express, Expedia and Hotels.com as said. office, and Smith said the agency cles themselves. troit Symphony Orchestra, Detroit In- clients. The agency also is seeking The agency first opened in Suite could be at 35 full-time staffers by stitute of Arts, Community Foundation work with one of the major Flori- “Our ability to work with ad 450 of the Fisher Building — Smith the end of the year. It has 30 now. of Southeast Michigan and others. da-based cruise lines, Smith said, agencies began with these kinds of has the original door key that the and will be pitching it later this The office includes a retro or- things,” Smith said. family kept — in 1959. It moved to Bill Shea: (313) 446-1626, summer. He declined to name ange refrigerator, artsy plywood The office also has various cre- Troy in 1977, and later to Royal [email protected]. Twitter: which line. cubicles created by a friend of ative and production spaces, and a Oak. @bill_shea19 Despite the national work, 75 percent of Skidmore’s business is in Southeast Michigan, he said. Among Skidmore’s local direct clients are DTE Energy, Quicken Loans/Rock Ventures, Weingartz, IS YOUR DATA SECURE ? Chrysler, The Sam Bernstein Law Firm, Crain Communications Inc., Lev- el One Bank, Detroit Regional Cham- ber, Detroit Jazz Festival and Tech- IT IS WITH US ! A DVISOR S POTLIGHT Town. It has done pro bono work for Detroit Public Schools. On the agency side, Skidmore has GENE LOVASCO done work for Doner, Lowe Campbell HARD DRIVE / DATA STORAGE Ewald, Team Detroit, The Mars Agency, President McCann/Commonwealth and Leo Bur- nett in the past year. HARD DRIVE DESTRUCTION As President of LoVasco Consulting Group, Gene leads and The full-service creative agency inspires his team to provide innovative and sustainable does graphics, storyboard anima- Call: 248-891-7330 or Email: [email protected] insurance, employee benefits, and retirement planning tion, interactive, website design, products and consulting services to clients. Gene works with copywriting, branding and market- clients to design sophisticated life insurance portfolios that ing. It recently added television pro- enable them to optimize economic results, minimize taxes, duction capabilities, and is doing and expand flexibility in multigenerational wealth planning. Dave & Buster’s TV commercials.

Smith bought the agency out- 535 Griswold Street, Suite 1600 • Detroit, MI 48226 • www.lovascogroup.com • 313.394.1700 right from Mae Skidmore, daugh- ter of late owner and founder Leo A Member Firm of M Financial Group. Securities Offered Through M Holdings Securities, Inc., A Registered Broker/Dealer, Member FINRA/SIPC. Skidmore, in 2009. The shop had 17 LoVasco Consulting Group is Independently Owned and Operated. staffers and $3.5 million in rev- enue that year. It had dropped un- der $3 million in 2008. He had been hired to oversee the agency’s diversification, then ac- quired a 10 percent equity stake in 2005 and became president in 2007. Smith moved the firm in 2010

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Page 6 CRAIN’S DETROIT BUSINESS July 14, 2014 New OU president’s agenda: Meet with biz, academic leaders

George Hynd was named Oakland versity and Purdue University. further that ef- University president last week, Hynd, 66, spoke with Crain’s re- fort? succeeding interim President porter Kirk Pinho on Friday about It is, in fact, Betty Youngblood at the his vision and priorities for OU. a commuter in- Q&A stitution. Most Rochester Hills school. Since 2010, Hynd had been provost and George Hynd, of the students OU traditionally has been seen as a do not live on executive vice president of acade- Oakland University commuter school but has recently campus, and mic affairs at the College of been ramping up its efforts to get new about 14 per- Charleston in South Carolina. He dorms on campus, including a large cent do. The addition of the new held previous academic leader- new dorm project that’s wrapping up residence hall, 500 new beds, is go- ship positions at Arizona State Uni- this summer. How are you going to ing to make a dramatic impact on the desirability of living on cam- pus. One of the important things is Midwest SMART Expo - where YOU want to be! that the Honors College will be in that residence hall. There, we have a good example of how an academ- ic unit can draw students into that environment.

What do you see as your initial prior- ities? My intention is to return to cam- pus here a couple times before Aug. 15, and I would like to meet EXHIBITORS with the board of trustees again and the senior leadership at Oak- REGISTER NOW! land University on a more infor- mal basis, perhaps individually, and have an opportunity to really drill down into the information COURTESY OF OAKLAND UNIVERSITY George Hynd’s first task as Oakland University president: Develop a 90- to 120- that I have been able to glean from day plan “on things I would like to accomplish, people I would like to meet and the outside. info I would like to gather.” What I would like to do when I start, with the board and senior The number of students in that Truthfully, I’m just past the leadership, is develop a 90-120 day program has grown by something point of taking a look at OU and plan on things I would like to ac- like 40 percent. That tells you the surrounding area from the out- complish, people I would like to there is a market out there that side, and that’s where those 120 meet and info I would like to gath- sees computer science and engi- days will be important — connect- er, so I and everyone else have a neering as facilitating a career ing with the business community pretty clear idea as to really what path that they desire. and finding out what their needs I’ll be doing for the first semester There is an opportunity, I think are. I have not had an opportunity there. Part of that is going to be — the dean and I very briefly dis- yet to form those relationships getting a better grip on the oppor- cussed this — that if you look at that I think will sustain Oakland tunities and challenges that Oak- the faculty in engineering, almost University’s outreach. That’s go- land has. 30 percent are women. There is an ing to be a developing initiative. incredible opportunity to reach I’ve been incredibly impressed The engineering department has out and encourage more women to with the economic development more than doubled in size — from come into the computer science plans that I’ve looked at from afar, about 1,000 students to more than and engineering field. both in Oakland County and also 2,000 — and is also getting a new I think what we’ll find is that the surrounding areas, as well as building. What do you see as the fu- that will be a point of pride I will in the city of Detroit. There is an ture of that department, and what be championing as I come in as incredible opportunity for out- would you like to address? president. Needless to say, I don’t reach. A lot of that will not just be I’m incredibly impressed with know if that means growing the faculty and programs in the school the School of Engineering and school and by how much, but re- of business, but I anticipate efforts Computer Science. If you look at sources will be important. that will offer business outreach the five fastest-growing majors at throughout the entire university. For more information, call (248) 464-3052 or visit OU, computer science is right up What kind of business outreach ef- our webiste www.MidwestSMARTExpo.com there over the last several years. forts will you employ? What’s the future of business edu- cation at OU? Right now, about 7 percent of the instruction of courses delivered at OU is through distance education online. That includes completely online courses and hybrid courses. I would like to drive that up. One With all the confusion surrounding way is that online helps students whose schedules are not necessari- ly congruent with the (traditional healthcare, who knew providing it business hours) class schedule. And, students who are taking could be so simple? classes on campus might also be taking an online course. It’s a mat- ter of reaching out to students of EXCHANGE SOLUTIONS™ all stripes. There is the opportuni- ty to reach a different population, INTRODUCING CAMBRIDGE EXCHANGE SOLUTIONS. CAMBRIDGE CONSULTING GROUP the adult learner, students over 24. There’s a new soluutioion to prooviddingg grorouup benenefiefit cooveraage, annd it’s very ssimple, really. YoYou gigvee your emplmp oyoyeess a seet amoununt of mom ney to spend on benefits – it’sts like a What is your first order of business bennefits allolowanw ce – and thhey use that money to shohop for the ccombination of coveerage that is not OU-related when you get to that meetee s thheir indidividual neeedsds. Employoyeess are empoweered by more plan choicices. town? AAnd you’re able to get crucuciaial contrn ool over costss. I’m going to be asking our com- munications and development peo- Cambridge bbringngs benenefits, tecchnologyog and deciision suppup orort tools inn a simple, ple to give me a list of people and conveniene t andd easy to implememennt package. Add it upu , and the aadvantages are cleaear. 248.743.4300 businesses they think I should ccgexchangesolutions.com touch base with first. I intend to be out the door meeting with stu- dents, faculty and the business ©2014 Cambridridgeriddgedggg Consulting GroGroup,oup,oup, LLC. All Rights ghtss Reserved.R community on a regular basis. 20140714-NEWS--0007-NAT-CCI-CD_-- 7/11/2014 6:12 PM Page 1

July 14, 2014 CRAIN’S DETROIT BUSINESS Page 7 Survey: Economists upbeat about economy, consumers wary

BY KIRK PINHO “U.S. companies, especially profits, sales and hiring to continue range.” CRAIN’S DETROIT BUSINESS Michigan companies that were to grow in the third quarter, ac- Stockholm, Sweden-based Cint — struggling prior to the great reces- cording to the report. which has offices in Atlanta, Los Economists predict higher sion, have really retooled and got Consumers generally had a neu- Angeles and Princeton, N.J. — ad- salaries and more metro Detroit their competitive ‘A game’ on.” tral view of the national economy ministers the surveys of con- jobs in 2015, but consumers aren’t But don’t be too optimistic just next year and in the next five years. sumers, while business executives, yet sold on the news. yet, Baruah said. “Dragging down the Consumer all C-suite level, submit informa- Stronger auto sales are expected “I don’t care if you are a worker Confidence Index is the consumers’ tion about their companies and to boost the local economy, but the or business leader or navel-gazer lackluster outlook for the national complete the survey. national outlook has consumers economist, you’re looking at the re- economy next year, as well as over The economists surveyed are feeling negative. Silberman Tracy covery with a little bit of a jaun- the next five years, and their diffi- from OU, Michigan State University, These results are to be an- diced eye because it’s never kicked culty in getting along financially,” the University of Michigan-Flint, Wayne nounced Monday as Oakland Univer- and 1.75 percent (29,782 jobs) next into gear in a meaningful way na- the report says. State University, IHS Automotive sity releases the latest Southeastern year. tionally.” However, “consumers are more Group, the Center for Automotive Re- Michigan Economic Outlook results. Sandy Baruah, president and While business executives sur- optimistic about their financial search in Ann Arbor, Loomis Sales They show local economists in the CEO of the Detroit Regional Chamber, veyed said they expect their capital condition improving next year and the Kalamazoo-based W.E. Up- public and private sector and exec- said the business leaders’ optimism expenditures to remain flat from with a value of 58.8, the only index john Institute for Employment Re- utives are relatively hopeful about makes sense. second-quarter levels, they expect component above the neutral search. economic factors like private-sec- tor employment, unemployment and per-capita income improve- ment through the end of 2015. A year ago, two economics pro- fessors in the OU School of Busi- ness Administration in Rochester decided to begin a quarterly region- al survey of local economists, busi- ness executives and consumers to gauge their predictions for the Southeast Michigan economy. Trust. Rebounding U.S. light vehicle sales — which the economists fore- cast will be 16.2 million this year and 16.45 million next year — are the main driver, said Jonathan Sil- berman, an OU economics profes- sor who, along with associate eco- nomics professor Ronald Tracy, compiled the survey. Silberman and Tracy surveyed eight economists, 435 consumers and 41 business executives in the region — Wayne, Oakland, Ma- comb, Livingston, Lapeer and St. Clair counties — to produce the re- port. The pair sent surveys to 115- 120 executives, they said. Tracy said the most telling of a slow but steady recovery for econo- mists is the region’s per-capita in- come, which is expected to increase by 3.5 percent from $43,315 in 2013 to $44,831 by the end of the year. By 2015, they expect it to increase 3.55 percent from $44,831 to $46,422. But that doesn’t include infla- tion, which by the end of the year is expected to be 2 percent and 2.3 per- cent by the end of 2015. The region’s unemployment rate is expected to fall from its current 8.2 percent to 7.85 percent, the econ- omists predict. That’s down nearly 1 percentage point from the 8.8 per- cent in December 2013. There were 1.68 million private- sector jobs in the region last year, and that is expected to increase by 1.5 percent (25,150 jobs) this year For the kindhearted, giving comes no self-enriching kickbacks from naturally. Time, donations, friendship, mutual funds, and no third-party advice, and maybe just room to expand. ownership. Instead, we have the BANKRUPTCIES But what of trust—is that something profound responsibility and broad skill The following businesses filed for pro- tection in U.S. Bankruptcy Court in De- freely given, or only earned? The answer set to oversee and manage six billion troit July 3-10. Under Chapter 11, a company files for reorganization. is hardly simple, especially in the context dollars of assets for our clients. It requires Chapter 7 involves total liquidation. of managing another’s money. At trust, which we ask for once. And every Commercial Business Lending Group PC, 6689 Orchard Lake Road, Suite Greenleaf Trust, every decision we day thereafter, we earn it anew. For 225, West Bloomfield Township; vol- untary Chapter 7. Assets and liabili- make is with your best interests in mind. more reasons why trust is in our name, ties not available. We have no proprietary investments, call us or visit greenleaftrust.com. Financial Security from Generation to Generation Performance Staging Inc., 39600 Schoolcraft Road, Plymouth; volun- no conflict of interest in our research, tary Chapter 11. Assets and liabilities not available. International Auto Center Inc., 23126 34977 woodward avenue birmingham, mi 48009 greenleaftrust.com 248.530.6202 Lawrence Ave., Dearborn; voluntary Chapter 7. Assets: none; liabilities: $247,192.75. — Natalie Broda 20140714-NEWS--0008-NAT-CCI-CD_-- 7/11/2014 6:15 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS July 14, 2014 OPINION Let’s help put our veterans to work ent Reyburn’s frustration in trying to enter the civilian workforce after four years in the U.S. Air Force — “Can’t ? Ktell you what I did … it’s classified” — is admittedly not the norm. (See story, Page 11.) But the reality is many veterans struggle to translate their experience, talent and can-do attitude into something a prospec- tive employer can relate to his or her needs. That’s where business needs to enlist some extra effort. Com- panies may wish to see this as their call to duty. For the second consecutive year, Crain’s this week is devot- ing a special focus report to military veterans — from programs that support them (Page 20) to entrepreneurs among them. Hiring veterans has been an emphasis for many business leaders as well as Gov. Rick Snyder, who created the Michigan Veterans Affairs Agency to help serve the state’s more than 600,000 vets. Over the next five years, 30,000 to 50,000 vets are expected to return to Michigan. Many of them have skills in IT, health care, engineering, skilled trades, advanced manufacturing and public safety, among other fields. Michigan companies such as Benton Harbor’s Whirlpool Corp. and MGM Grand Detroit can attest to the wisdom of focus- ing on the veterans’ talent pool. LETTERS The efforts of these companies, and the reflections of veter- ans who became entrepreneurs, are worth reading about. But the hope is that the stories will also inspire action on the part of employers. Detroit fortunate to have Niblock

Editors: and civic hackers eager to work Crain’s Detroit Business Detroit Future City would like with the future CIO to realize a vi- welcomes letters to the editor. Some ideas to boost riverfront to commend Crain’s June 30 arti- sion for “Detroit 2.0.” All letters will be considered for The Detroit RiverFront Conservancy has a new top boss. cle on the work and priorities of publication, provided they are Detroit Future City continues to new Detroit CIO Beth Niblock And this time, the CEO is a real estate property manager. signed and do not defame work with Ms. Niblock to imple- (“New CIO Beth Niblock starts ment her vision of harnessing Faye Alexander Nelson led the conservancy for more than a individuals or organizations. from scratch to overhaul Detroit’s Letters may be edited for length technology to improve city opera- decade before she left in February to head the DTE Energy Foun- ‘fundamentally broken’ IT sys- and clarity. tions and service delivery, sup- tem”). Detroit is lucky to have a dation. Under Nelson’s stewardship, the conservancy made Write: Editor, Crain’s Detroit porting her efforts to recruit a person of her caliber and vision great strides in creating and refreshing public spaces: the River- Business, 1155 Gratiot Ave., deputy director for technology working diligently to improve Walk, Dequindre Cut, and other investments that connect public Detroit, MI 48207-2997. community engagement and iden- technology infrastructure and tify opportunities to open data to Email: [email protected] parks and public art. Now, the riverfront is ready for more of the open data in City Hall. Detroit entrepreneurs, universi- private economic development that complements those features By leapfrogging to municipal ties and the general public. — namely restaurants, shops, nightlife and residences. best practices in information tech- Technology to bring the all-star We look forward to connecting Mark Wallace (See story, Page 3), here are some items for nology and taking advantage of in- team of CIOs to Detroit, support- the CIO to additional opportuni- novations from across the coun- ing the team in developing recom- your to-do list: We’d like to see riverfront pubs to grab a burger ties for municipal innovation in try, Detroit has the opportunity to mendations for how to leverage in- and beer after work and some new shops to buy Detroit-made line with other transformative become a national leader in using formation technology to improve change taking place in Detroit gifts. How about an upscale ice cream parlor? We could even in- technology to create a more re- service delivery and support tech- through the Detroit Future City’s vite the Nain Rouge to a series of grand openings instead of a sponsive, efficient and connected nological innovation inside and strategic framework and other ini- banishment parade. municipal government. outside City Hall. DFC connected tiatives. Detroit Future City’s implemen- the White House team to a net- The riverfront, and much of Detroit, can be likened to a par- Kenneth Cockrel Jr. tation office worked with the work of public and private offi- Executive director tially painted canvas. It’s time to color in the details. White House Office of Science and cials, technology entrepreneurs Detroit Future City’s implementation office

KEITH CRAIN: It is an amazing accomplishment Every day, there are new re- The journey is nowhere end game and are doing When Orr is finished, he will not house in order but end up with a ports of some sort of roadblock to near over, but I am in a fine job together. have any extra time to contem- remarkably clean balance sheet. the eventual solution to the city of awe that it has gotten There are still plenty plate his next move. The clock is The challenge still remains, af- Detroit’s bankruptcy case. this far without a major of potholes and road- ticking and there will be not a ter Orr leaves, to build economic And every day, there is a new explosion. blocks from all sorts of minute extra when it expires. development. Without the growth revelation about another solution And we all have to con- interested parties and The mess in Detroit was not cre- and jobs for this city, it is frighten- to this complicated financial jigsaw gratulate the new mayor troublemakers. There ated overnight. It has been brew- ingly possible to spiral back into puzzle that is the city of Detroit. of Detroit, Mike Duggan, are plenty of folks with ing for decades, and the leadership the same abyss as before. That the city and the bankrupt- for understanding the fi- IOUs who are hoping for of the city can take credit for com- If anyone thought that Orr’s job cy case have gone this far — and nancial crisis that he is a few more dollars. pounding the problems and “kick- was tough, they’re right. But May- accomplished so much — is noth- in the midst of and being Orr has not faltered ing the can down the road.” or Duggan will have an equally ing short of miraculous. willing to work with the from his mission. He has Ever since the days of Mayor challenging and far more precari- We, the residents of Southeast emergency manager. It not gotten into a public Coleman Young, this city has been ous job in the future. Michigan, have to tip our hats to the really doesn’t matter how it’s work- squabble with any of the debtors. mismanaged and full of corruption. It is truly amazing so much as accomplishments of Detroit Emer- ing inside. To the outside world, it is He understands what he has to do, We now have a great opportuni- been achieved. But it’s only the be- gency Manager Kevyn Orr thus far. working well. They understand the and he is on track to get it done. ty to not only set our financial ginning of a long journey. 20140714-NEWS--0009-NAT-CCI-CD_-- 7/11/2014 9:47 AM Page 1

July 14, 2014 CRAIN’S DETROIT BUSINESS Page 9 OTHER VOICES: Let’s build city into world’s ‘Silicon Garage’

Sometimes the new big and autonomous driving. novators from all over Michigan idea is all about building Why wait for the feder- and the world with their new ap- on your existing strengths. al government to create We must build upon our automotive plications, products and services I spent the past two policies and infrastruc- “ into the first and best mobile beta decades as a serial entrepre- ture for the Internet of heritage and lead the nation in the future of platform on earth? neur and senior executive things when Detroit can Isn’t it time that we bridge our at multinational corpora- lead the creation of con- mobility. illustrious past to a promising fu- tions in the U.S., Europe nected cars and connect- ” ture? Let’s hustle harder and and South America. ed communities? smarter. Let’s build a Silicon Spending some time We read about six ways er. I am reminded of a quote attrib- Why not transform the first mile Garage where entrepreneurs, au- away has helped me see my to “Reimagine I-375.” No uted to our most famous mobility of Woodward into the first smart tomotive manufacturers and poli- hometown through fresh Angel Gambino option for how to recon- entrepreneur, Henry Ford: “If I urban roadway in the world in cymakers unite to ignite growth in eyes. figure this stretch of freeway men- had asked people what they want- 2015? Why not provide roadway ac- Detroit. Angel Gambino is a Detroit na- Like many Michiganders, I as- tions how we might create safer, ed, they would have said faster cess to crowd-funded projects and tive, a keynote speaker and owner of pire to make an impact in creating more efficient and intelligent con- horses.” campaigns like www.solarroad- The Alchemists Collective, an inno- a new Detroit: a city with a future nected roads. We must anticipate Detroit unveiled the first paved ways.com, which has raised more than $2.2 million on Indiegogo? vation and economic growth agency that could eclipse its former hey- technological and lifestyle changes road in America in 1909. What are now rather than react to them lat- we going to do now? Why not allure, vet and retain in- in Corktown and London. day status. I am thrilled by the pos- itive momentum of change and the range of opportunities emerging from investors and organizations like Dan Gilbert, David Fry, J.P. Morgan, Detroit Venture Partners, Inforum, Bizdom, TechTown and the Detroit Regional Chamber. I wonder, however, why we contin- ue to ignore our single biggest op- portunity? “ HOW CAN DTE ENERGY Detroit must become the world’s Silicon Garage — the gritty place where big ideas originate and are HELP MY BUSINESS SAVE?” transformed into new mobility models, products and services. We must build upon our auto- Each business is different, so DTE Energy offers an online Interactive Business tool which motive heritage and lead the na- lets you get information tailored to your specific business environment. From grocery tion in the future of mobility. De- troit brought mobility to the stores to warehouses, you’ll find tips, incentives, rebates and more that will help you world. Which city has a more cred- ible mobility brand than the Motor reduce your energy use. We also provide a number of other online tools to help our City? Not one. business customers use less energy and save more money. We have an abundance of engi- neering, creative and business tal- ent and affordable space for re- search, development and manufacturing. We have deep do- main expertise that differentiates us. We taught the world how to DTE wants to help you save, so get started at scale mobility businesses with ve- dteenergy.com/interactivebusiness locity. This is a critical success factor for any new business — yet I see very little support, collabora- tion or focus on building new mo- bility solutions and businesses to drive economic growth in Detroit. The successes we do have in this region, like Livio, Roush, Fonti- nalis and the University of Michi- gan Transportation Research In- stitute, are largely unknown to most of the world where Google and Tesla dominate headlines. We need to communicate more confidently and loudly to inspire aspiring local entrepreneurs and attract foreign talent, investment and partners. Automotive value chains of OEMs and suppliers have a beginning and an end. We need to create new markets by col- laborating and investing in the de- velopment of a healthy mobility ecosystem. We must invite acade- mics, policymakers, corporations, investors and entrepreneurs to the same table to create meaningful di- alogue about how we can create the optimal conditions to build new mobility businesses. If we are to reinvent Detroit, we must redefine “automotive.” Cars are now mobile software plat- forms. A newly defined automo- tive industry encompasses smart mobility and digital economy busi- Start saving today visit: nesses like Waze, Uber, TrueCar, ZipCar, RelayRides, Coverhound, dteenergy.com/interactivebusiness LaneHoney, Peloton, AutoWeb and Zubie. We must become the global hub for the connected car 20140714-NEWS--0010-NAT-CCI-CD_-- 7/11/201411:35AMPage1 Home toeligiblehomebuyers. whose membersaretoutingthebenefi ts ofMINext andtheMichiganBankers Association Association, qualify foraMINextHomemortgage, Townley said. as1millionMichiganhomebuyerscould As many housing market.” borrowers, thestatewide helpingtostimulate roadblockforeligible “This programremovesthat MSHDA’s Division. Homeownership director of Townley,Mary barrier,” said can provea payment a down new home, but market fora are enteringthe “As theeconomyimproves, homeowners many Business Community Partnering withthe or multiple-sectionmanufacturedhomes. or existingsingle-familyhomes, condominiums thepurchaseofnew payment assistancetoward (maximum 4percentofthesalesprice)indown upto$7,500 Home offerseligiblehomeowners program forfi rst-time homebuyers, MINext An expansionofMSHDA’s popularMIFirst Home make theirnextmove. whoarelookingto to existinghomeowners payment assistancewithaMSHDAfi rst mortgage thisyear,introduced statewide offersdown The MINextHomeprogram, whichMSHDA theirway.is helpingtopave HousingDevelopment State Authority (MSHDA) Michigan, andanewprogramfromtheMichigan Buyers continuetomovebackintoSoutheast Michigan Realtors MSHDA hasformedapartnershipwiththe To abouttheprogram, helppromoteawareness Michigan StateHousingDevelopmentAuthority’s MINext Homeprogram. The DownPayment Fairy ishelpingtospreadthewordabout assistance offerawarmwelcome. gives MSHDA’s newdownpayment Southeast Michigan’s housingmarket ® , the Michigan Mortgage Lenders theMichiganMortgage , Advertisement

© Vito Palmisano Meeting aDemand Lenders Mortgage Association. Kim Alexander, CMB, presidentoftheMichigan new home,” said to upgradea who arelooking homebuyers targeting repeat is playingby Home program the MINext important role Southeast Michiganhousingmarketandthe speakstoboththestrongdemandin “That lending product. other thanany wasfargreater a pacethat MI NextHomewithinarecenttwo-weekperiod– reported receivingnearly20inquiriesregarding the marketplace. OneDetroit-arealoanoffi cer abuzzin generating The programisalready going to by onMINextHomeisavailable More information of threeormorepeople. households tomorethan$90,000for from roughly$65 ,000 forone-ortwo-person bylocation,vary buttheyrangeinmetroDetroit alargesegmentofthemarket.serve The limits The program’s incomelimitsalsoaredesignedto of upto$224,500. thepurchaseofhomes withsalesprices toward onaMSHDAfiassistance available rst mortgage going, Townley said, payment with down momentum MI NextHomeisdesignedtokeepthat month in2013. 24 percentto$138,000inMayfromthesame Wayne, LivingstonandMacombcountiesjumped themediansellingpriceinOakland,found that from Farmington Hills-basedRealcompIILtd. digits formorethanayear. data The latest beenrisingmonthlybydouble values have SoutheastMichiganhome that show Statistics www.michigan.gov/ownmihome . Page 10 Europe andAsia,PenskeLogis- North America,South Leasing Co.LP. owned subsidiaryof nonunion employees. Auto WorkersLocal600 161 arerepresentedbythe American operations. gistics providerforFord’sNorth services. Thecompanyisleadlo- Ford withcertaintransportation and willnolongerbeproviding expected lossofafairmarketbid it isclosingthesiteduetoun- the stateofMichigan,Penskesaid vendor. ployees mayshifttoanewFord business, butmanyofthoseem- the lossofsome layoffs areplannedastheresultof Sept. 20.Thecompanysaid183 its Riverviewlogisticscenter Group lion fromDetroit-based rently hasitsoffices,for$14.5mil- at 500GriswoldSt.,whereitcur- purchased theGuardianBuilding ees untillate2009.Thecounty County executivebranchemploy- 1902 andwashometoWayne ing wasbuiltbetween1897and investment groupfor$13.4million. ing soldtoaprivateNewYorkCity Fort St.indowntownDetroitarebe- county-owned parkinglotat400E. Building at600RandolphSt.anda tween EastCongressandFort firm ontheproject. and AnnArbor,isthearchitecture Inc mediately. building areexpectedtobeginim- the interiorandexteriorof pancy. Laynesaidrenovationson renovated forsingle-tenantoccu- said. tate holdingsinManhattan,he group hasmultipleClassAreales- metro Detroit,Laynesaid.The the buyers. is handlingmediainquiriesfor Marx LaynePublicRelations ident ofFarmingtonHills-based July 17,saidMichaelLayne,pres- and conditions.Thatisexpected grant finalapprovalontheterms SN LLC parking lotsaleto approved thebuilding,landand being soldfor$2.51million. tions forthecommission.Thatis Jim Toth,directorofcommunica- County Commissionapproval,said sits; saleofthelandrequiresWayne which theformercountybuilding for OldWayne CountyBldg. N.Y. groupset topay$13.4M Penske LogisticstocloseRiverviewsite Penske Logisticsisawholly Of thoseemployedatthesite, In aWARNActnoticefiledwith Penske Logistics The 250,000-square-footbuild- The vacantOldWayneCounty The building,whichislocatedbe- The buildingisexpectedtobe It’s thebuyer’sfirstpurchasein The commissionpreliminarily The countyownsthelandon ., whichhasofficesinDetroit CRAIN’S DETROITBUSINESS CRAIN’S DETROITBUSINESS in 2008. B B Y on Thursdayandmust Y C Quinn EvansArchitects K HAD IRK With operationsin H P Ford MotorCo ALCOM plans toclose INHO 600 Randolph Penske Truck and 22are Sterling , which United . report. pany wasstillforthcoming. Friday astatementfromthe com- employee atComprehensive said employees inRiverview.Butan ed toassumethePenskeunion ment vendortoFordandisexpect- hensive LogisticsCo Youngstown, Ohio-basedC told employees therebeforeSept.20. planning torelocatethenonunion count, whilePenskeLogisticsis a newvendoronthatFordac- will betransferredorassumedby the unionpositionsinRiverview portation businesswithFord. of itsoverallsupplychaintrans- center represents“asmallpiece” Reading, Pa.,saidtheRiverview manager forPenskeLogisticsin companies throughouttheworld. major industrialandconsumer agement andlogisticsservicesto tics providessupplychainman- told County BuildingLPatthetime, spokesman fortheOldWayne purchase theGuardianBuilding. nouncement forthecountyto tive RobertFicanoinhisan- cording toWayneCountyExecu- was paying$45persquarefoot,ac- building. Thecountycontendedit 200,000 squarefeetofspaceinthe was beingoverchargedforits Burton Farbmanandothers. Farbman Group which includesSouthfield-based with chase in2008cameafteradispute information service Washington, D.C.-basedrealestate nearly threeyears,accordingto streets, hadbeenonthemarketfor Street ParkingDeckin2010. million forthe1,450-spaceFirst Building square-foot tion thatalsoincludedthe35,000- part ofalargerrealestateacquisi- Layne said. Old WayneCountyBuildingLP,” litigation betweenthecountyand (sale) willresolveanyoutstanding suit againsttheownersbut“this foot. was actuallypaying$16persquare lot. parking owned and acounty- County Building vacant OldWayne plans tobuythe investment group A NewYorkCity Sherri Welchcontributedtothis Sources inthelogisticsindustry Beljin saidthecompanyexpects Alen Beljin,publicrelations Layne, whowasactingas Wayne Countysaidatthetimeit The GuardianBuildingpur- The countypaidmorethan$14 The GuardianBuildingsalewas Ficano fileda$40millionlaw- Crain’s Old WayneCountyBuildingLP Crain’s at 511WoodwardAve. Detroit SavingsandLoan then thatthecounty Chairman andCEO last weekthat . isthereplace- COSTAR GROUPINC. July 14,2014 CoStar GroupInc ompre- . , 20140714-NEWS--0011,0012-NAT-CCI-CD_-- 7/11/2014 11:06 AM Page 1

July 14, 2014 CRAIN’S DETROIT BUSINESS Page 11

PUBLISHER’S NOTEBOOK

Contact Mary Kramer at mkramer @crain.com. CRAIN’S MICHIGAN BUSINESS Mary Kramer Tax helps vets “What you get is an individual who has high integrity, a high sense of honor and who wants to do their very best. ” Rozell Blanks Sr. access services VETS IN MICHIGAN: FROM Our country’s treatment of its veterans hasn’t been, well, uniform. ARMED FORCES TO WORKFORCE Some have gotten ticker-tape Vets agency, the first year: The parades when they came marching Michigan Veterans Affairs Agency home at war’s end. Many Vietnam-era has launched a one-stop website for veterans and a toll-free number to veterans felt the sting of that help with services and needs. It politically unpopular war on their also has helped local organizations return. In this century, “wars” are and employers better connect with ongoing “conflicts” with body counts, Michigan’s 660,000 vets. But but no defined “armistice” to that’s just the start, Page 13 celebrate, and veterans return to face Lessons from the front lines ... of daunting unemployment rates. business: Vets can marshal a lot of Michigan has more than 600,000 qualities essential to the veterans — 11th-largest among the entrepreneur. But being an army of states. Thousands more are expected one is not without its hard lessons. as veterans return from Afghanistan. But Some vets-turned-entrepreneurs many aren’t tapping the resources they reflect on their experiences, are due through mostly federal programs Page 15 covering everything from health care to For women vets, a greater disability to job training/tuition challenge: How do you go to school assistance and housing benefits. if you can’t afford day care? That’s Last year, Michigan was 49th in just one of the barriers women must terms of federal dollars coming back overcome in a transition to civilian life, Page 18 in awards to veterans. Why so low? Resources for veterans: Page 20 Paul Potter thinks part of the problem is getting into the system in the first place. The electronic application program is tedious, and if one response is not completed properly, the system can reject an application. Potter, a Potter Vietnam vet and KENNY CORBIN former Detroit-area executive with a Rozell Blanks Sr., vice president of human resources at MGM Grand Detroit and a U.S. Air Force veteran, says companies of just about any size can take the real estate subsidiary of DTE Energy initiative to hire veterans, including making direct contact with military bases. Co., helped to overhaul veterans services in Kent County in 2009 as a volunteer serving on the county’s veterans affairs committee, appointed by the county administrator. Now, he’s part of the campaign to persuade voters to approve a half-mill property tax in November to expand Basic training for biz outreach staff in the county’s veterans office. The focus would be connecting the area’s estimated 50,000 veterans to housing, employment and health Firms say hiring vets is worth extra effort – here’s what they do care and other benefits. Since the tiny, one-person county office changed its focus to outreach in BY MATTHEW GRYCZAN Many veterans don’t have the same re- combination of pluck and networking. 2010, 2,009 veterans’ claims have CRAIN’S MICHIGAN BUSINESS strictions as Reyburn when they put to- been processed, leading to $15.4 “The biggest advantage is that I’m gether their resumes, but they all could million in benefits to Grand Rapids- ent Reyburn faced a from a small town, and our social media area veterans. Work-study students use some added effort by prospective em- quandary when he started is what we call ‘Dutch bingo,’ ” he said. from Grand Valley State University ployers to understand how their military applying for jobs in January “In Holland, everybody knows some- have assisted in the outreach. experience can be applied to open posi- after serving four years in body. ‘So you’re a Scholten, so do you “This is a great economic benefit to tions. the county,” Potter said, because the the U.S. Air Force: He could- know this Scholten?’ You can connect dollars go to groceries, housing and K Phil Meiste spent a fair amount of quickly, and bingo!” n’t tell prospective employers exactly other services in the region. time giving his spiel to several prospec- what he did in the service because it Connections are made just as easily All counties have the authority to levy tive employers about “all the little jobs was classified. between vets, said Meiste, 30. He attends voter-approved taxes to support that made up my big job” as a “6541” veterans services; 24 have them now, classes offered by Life EMS Ambulance in “There were a couple of companies classification in the U.S. Marines — avia- including Wayne, Oakland and Macomb. Grand Rapids with the expectation he that, once I told them I couldn’t tell them tion ordnance explosives technician. The millage has support of veterans will graduate in September from its one- what kind of equipment that I worked “I’d tell them about my experience as organizations; relatives of veterans year accelerated paramedic program. who committed suicide have talked on because we aren’t supposed to talk a logistics officer, quality assurance offi- “I’ve gotten good support by talking publicly about the need for better about it, they told me, ‘Then we can’t cer, safety officer, supply officer,” access to services. help you find a job,’ ” said Reyburn, 30, Meiste said. “But after I explained it, to with other vets, dealing with other “This is very much a nonpartisan vets,” Meiste said. “But on a resume, be- issue,” Potter says. “Nobody on a who recently landed an information them it was, ‘Oh, you build bombs.’ ” battlefield asks if you are a technology position with Fifth Third Meiste found work at a nursing home ing a vet is an asterisk.” Republican, Democrat or Libertarian.” Bank in Grand Rapids. near his hometown of Holland through a See Vets, Page 12 20140714-NEWS--0011,0012-NAT-CCI-CD_-- 7/11/2014 11:07 AM Page 2

Page 12 CRAIN’S DETROIT BUSINESS July 14, 2014 CRAIN’S MICHIGAN BUSINESS FA Vets: Enlist effort, firms say, and reward – talent – is worth it Fa ■ From Page 11 Pa MGM Grand Detroit, Whirlpool Corp. applications, said Lida Citroën, au- cost modeling at Whirlpool. Ini- sessions for hiring managers so ment managers directly. and a slew of other Michigan com- thor of Your Next Mission, a book tially, Fichtner said, he applied up they can translate military training Blanks — himself an Air Force panies are trying to make military that relates her experiences coach- to 20 times at the appliance maker to Whirlpool job openings and com- veteran — said companies of just service more than a footnote on a ing nearly 200 veterans on how to “with zero luck” after he left the pare the culture of the branches of about any size can take the initiative resume. They state bluntly that it approach civilian employment. Air Force three years ago. service with the corporation’s cul- to hire veterans, including making takes extra work to comb through “Veterans need to learn how to Although he held a bachelor’s de- ture. Hiring managers generally contact with military bases directly. applications closely and encourage speak about themselves: They don’t gree from Embry-Riddle Aeronautical find it difficult to make those com- For instance, a company’s hiring hiring managers to sometimes take use I,” Citroën said. “It feels very University and a master’s in project parisons “unless someone sits manager can make direct contact a second look at prospective candi- disloyal to a veteran to talk about management from Trident University down with them for a couple hours” with transition assistance offices at dates who are veterans. himself in the first person — they International, Fichtner had difficulty and goes through actual resumes, military installations throughout But they also say the reward of are used to speaking about the troop writing a resume “that the civilian said Kimberly Fry, Whirlpool’s se- the Midwest to build relationships acquiring good talent is worth the or the squad or being part of a unit.” force could understand.” And nior manager of talent acquisition. and host career events on site. added effort. And much of what they can tell Whirlpool wasn’t versed in translat- Fry said Whirlpool strongly sug- Veterans “are transitioning out “What you get is an individual prospective employers may turn out ing the information. gests that hiring managers conduct of the military every day,” Blanks who has high integrity, a high sense to be a jumble of military jargon. Unsatisfied at another job, Ficht- phone inter- said, so companies can accelerate of honor and who wants to do their College seniors who are close to ner last year asked a friend who views with veter- the hiring process by detailing for very best,” said Rozell Blanks Sr., graduation have an edge over vet- worked at Whirlpool to forward his ans whose re- military bases the specific skills vice president of human resources erans of the same age, Meiste said. resume to the company’s new sumes have been needed to fill open positions. at MGM Grand Detroit. “Because “When you’re close to graduat- Whirlpool Veterans Association and prescreened for Often veterans bring with them we have a volunteer military, these ing, your last semester is pretty act as his advocate. After his friend proper qualifica- a top-notch education paid for by veterans have volunteered to do much how you interview,” he said. explained Fichtner’s resume to hir- tions. She esti- Uncle Sam, Blanks said. Besides very tough, very difficult jobs. In the Marines, “we got a two-week ing managers, Whirlpool called mated that about the service’s own training or class- “I can’t think of a more difficult class that pretty much said: Get to him in for six face-to-face inter- 75 percent of es taken at colleges near military job than one that requires you to work on time, don’t curse, wear views that ultimately resulted in such phone inter- bases, veterans can tap into bene- put your life on the line, and it’s not khakis and use a blue pen.” his current job. views resulted in fits offered under the G.I. Bill to for a whole lot of money. So you’re So companies need to fill that “You have to have a champion Fry face-to-face inter- further their educations, he said. talking about highly skilled, highly gap with extra effort. for hiring veterans on an organiza- views, and about 80 percent of face- Paul Ryan, state chairman of the technical, well-disciplined individ- “For employers, it is asking ques- tional level and on a personal level, to-face interviews led to job offers. Michigan Committee for Employer uals who tend to excel quickly in an tions that dive to levels deeper than and it’s not intuitively obvious how Sometimes the process needs to be Support of the Guard & Reserve, said organization.” normal,” Citroën said. “For a veter- to do that,” said Robert Lemyre, repeated before a successful place- considerable resources are avail- an who said he was driving a tank, vice president of purchasing global ment is made. Ben Kunst, an associ- able to companies of all sizes that It’s not about me the employer may ask what caused operations at Whirlpool. “We try to ate sourcing specialist in North want to make recruiting veterans you to raise your hand to go into pair the veteran and his resume to American Region Procurement at a hiring priority. Two common reasons why veter- the service, what you’re passionate the specific job, and we will have Whirlpool, made his first contact The ESGR is a national volunteer ans stumble during the hiring about, what you are excited to talk veterans in our organization reach with the association at a Hiring Our organization established by the U.S. process are their reticence to talk about. Sometimes you have to pull out to hiring managers and explain Heroes job fair, and he was directed Department of Defense in 1972 to act about themselves and their difficul- that stuff out of them.” to them what they should look for to apply formally through the com- as a bridge or facilitator between ty with relating how military expe- That certainly was the case for in veterans in general — or in this pany’s application process. prospective employers and anyone rience can have practical civilian Luke Fichtner, a project analyst in veteran specifically.” Kunst was screened out at least with military service going all the once during the general process, way back to Vietnam, as well as mil- but vets association members in- itary spouses. In Michigan, the Making the case for veterans tervened and resubmitted his re- ESGR has about 110 volunteers and Whirlpool launched the vets asso- sume to the hiring managers when four full-time staff members: one in ciation conceptually in 2012 and “we thought there would be a good Grand Rapids, two in Lansing and made it an official part of its busi- fit,” Lemyre said. one at Selfridge Air National Guard ness plan last year, Lemyre said. Support for Kunst didn’t stop Base in Harrison Township. There are five chapters of the asso- there. The association provided him One powerful tool is participa- ciation: in Clyde, Ohio; a call center a “battle buddy” who “showed me tion in veteran hiring fairs, said and a manufacturing plant in Cleve- the ins and outs of the corporate cul- Ryan, who became vice president land, Tenn.; Amana, Iowa; and Tul- ture and assisted with my transition of an arm of Fifth Third Bank sa, Okla. Three more Whirlpool lo- to the local community,” he said. called Mirador Family Wealth Advisors cations are forming chapters. Because of its initiatives, Whirl- after 25 years in active and reserve Whirlpool took a year to exam- pool is showing steady progress in duty with the U.S. Navy. ine how the association would op- adding veterans to its executive ESGR has had its best success Join Verlander’s team to support veterans erate within its business frame- ranks, Lemyre and Fry said. The with Hiring Our Heroes, a program work “to make sure it wasn’t just a corporation hired seven veterans sponsored by the U.S. Chamber of and score some prizes! passing fancy or social club,” Le- during the test phase of the veterans Commerce Foundation that hopes to myre said. The good publicity that association in 2012 and 20 last year, conduct about 400 hiring fairs Justin Verlander and his Wins for Warriors program are competing to raise the can come from actively seeking when the association was officially throughout the country this year, most money in Crowdrise’s Veterans Charity Challenge 2 and he needs your help! out veterans helped make the busi- recognized as a section of the Em- Ryan said. ness case for the additional re- ployee Resource Group. “We’ve had about 20 of them in Join the team and donate or raise money between MAY 22ND-JULY 3RD for your sources required, as did the advan- This year Whirlpool has set a Michigan over the past three years,” chance to win some cool prizes and help our efforts to support the mental health tages of hiring mature employees goal of adding 22 vets as profes- he said. “We have some pretty solid and emotional well-being of veterans and their families. with a disciplined work ethic. sionals, not including veterans statistics that indicate that the Hir- Whirlpool tapped employees who hired as hourly employees. ing Our Heroes program in Michi- We are competing against organizations across the country and the top teams had served in the military to repre- gan yielded a minimum of about 350 win cash prizes from craigconnects, founded by Craig Newmark of craigslist. sent the company at hiring fairs positions that have been filled since and to “harvest” the resumes of vet- Support, big and small 2011.” That number is likely low be- Last August, Justin committed $1 million to launch Wins for Warriors with the erans that came from a variety of Similar to Whirlpool, MGM Re- cause some companies don’t break vision of a world where there is no stigma around veterans and their families sources, including word of mouth. sorts International forged a relation- out hiring statistics by state. getting the support they need to address mental health issues. The organization Last year the company started to ship with another organization to In addition, Gov. Rick Snyder has partnered with national leaders like The Mission Continues and Give an Hour use Orion International Consulting facilitate the hiring of veterans for established the Michigan Veterans to bring successful models to Detroit, Richmond and Norfolk. The work does not Group LLC in Cary, N.C., to help act positions at MGM properties in Affairs Agency last fall to bring un- stop there and we need your support to expand efforts to include a therapeutic as a recruitment firm for former Detroit; Las Vegas; Biloxi, Miss.; der one roof all the state-sponsored retreat and funding for cutting edge research. military professionals. Representa- and a new property in Maryland. services for veterans, Ryan said. tives from the five association The corporation’s Boots to Busi- The ESGR, Veterans Affairs chapters have phone conferences ness program with the American Agency and other agencies work Sign up today and help Justin with Whirlpool’s Benton Harbor Red Cross has resulted in 10 addi- closely with each other under the have a deep and sustainable headquarters on a regular basis to tional hires at MGM Grand Detroit principle of “no wrong door” when coordinate community events. since last year, bringing the total it comes to helping vets connect impact on the veteran community. Along with Orion International, number of veterans at the property with employers, Ryan said. association chapters go through re- to more than 60, Blanks said. Four “The vet needs meaningful ca- sumes, interview applicants to un- executive committee members at reer employment,” he said, “and To learn more visit www.winsforwarriors.org derstand their background and ex- MGM Grand Detroit are veterans. companies need employees who Follow us on twitter @WinsforWarriors perience, and advise them on how Veterans also receive additional are coming forward to improve the to craft resumes so they are “busi- help to craft their resumes and bottom line.” ness-friendly” to hiring managers. hone interview techniques, and Matthew Gryczan: (616) 916-8158, In turn, Orion International has MGM Detroit hosts recruiting [email protected]. Twitter: held six on-site and virtual training events where vets can meet depart- @mattgryczan 20140714-NEWS--0013-NAT-CCI-CD_-- 7/11/2014 10:16 AM Page 1

July 14, 2014 CRAIN’S DETROIT BUSINESS Page 13 CRAIN’S MICHIGAN BUSINESS Vets agency creates 1-stop website its 1st year, sets agenda

BY AMY LANE the ability to deal with pressure. The efforts to improve service to contract to assess veterans’ services SPECIAL TO CRAIN’S MICHIGAN BUSINESS VETS EXPOS ACROSS STATE “If veterans are coming out with vets and connect them with busi- provided by federal, state and pri- some of these skills and their peers nesses and economic sectors that vate organizations in two Michigan Hiring Our Heroes, a program of In a little over a year, Michigan’s don’t have them, they might be could be attractive and offer oppor- regions: Wayne, Oakland and Ma- newest state agency has launched a the U.S. Chamber of Commerce Foundation, will be involved with some of the prime people to take … tunity helped Michigan become one comb and a 13-county West Michi- one-stop website for veterans and a the state in a veterans expo leadership positions,” said Jason of the first states to land national gan region centered in Kent County. toll-free number to help with ser- scheduled for Nov. 7-8 in Cobo Palmer, director of the labor mar- designation in a new U.S. Chamber of In each region, more than 90 or- vices and needs. It also has helped Center in Detroit. The expos are ket bureau. Commerce Foundation initiative. ganizations have participated in local organizations and employers more comprehensive than job fairs The study also found that the All Vet States, part of the founda- Altarum-organized meetings. better connect with Michigan’s that have been held in the state. number of Michigan veterans and tion’s Hiring Our Heroes program, “There’s no shortage of people 660,000 vets. This year, those fairs will be fewer nonveterans not looking for work is in number and larger as the state highlights states on a website. looking to support veterans,” said For the Michigan Veterans Affairs about the same. But among vets, looks to consolidate the events. Michigan’s page links to the state’s Glen Greenlee, Altarum’s vice Agency, that’s just the start. about 60 percent indicated they are website and contains additional The agency’s to-do list this year Similar events are planned for Aug. president and director of health 8-9 in Marquette and Sept. 5-6 in not looking specifically because information and resource links care analytics. “What always sur- includes starting an on-campus ini- Grand Rapids. they think nothing is available in provided by the foundation. tiative to beef up the number of ac- prises me is you’ll get two people Information: Visit their line of work or area. Just 1 per- It’s a prominent way to place credited service officers available to who have been working in this events.mphi.org/vetexpo cent said a lack of necessary school- Michigan in front of service mem- veterans attending classes at col- area for quite a while, years … ing or training was their reason. bers as they plan their transition leges and universities. The service (and) they didn’t know each was up more than $1,000 from $4,069 in “This suggests that veterans to civilian life and consider career officers help veterans submit claims working in this area. You see con- 2012 and placing the state 49th out themselves may believe that they opportunities and destinations. to the U.S. Department of Veterans Af- nections happen, and that becomes of 53 states and territories. have important education and ex- fairs. “This is one of the programs, re- a fairly critical building block to He said Michigan’s historically periences but that they are having sources we can highlight … as part what we’re trying to formalize.” Also planned: three expos to link a difficult time identifying how low rank is probably due to several of outreach efforts to service mem- The goal, Greenlee said, is to vets to education, employment, their military experience or occu- factors, including veterans who en- bers on base while they’re on ac- create a network so that when a health care and quality-of-life op- pation translates back to the civil- tered the auto industry and other tive duty,” said Eric Eversole, ex- veteran, family member or advo- portunities. ian economy,” the study said. sectors and never applied for bene- ecutive director of the Hiring Our cate makes contact, “even if that In progress is an upgrade of the “Moreover, these veterans may be fits, a lack of active-duty installa- Heroes program. service provider can’t provide state’s Pure Michigan Talent Con- having a difficult time talking tions that draw retired veterans to This summer also will bring a re- what’s needed, you’re one degree nect website, mitalent.org, to add a about their military experience in surrounding communities, and vet- port from the Ann Arbor-based Al- away … and the person you’re feature that translates military oc- a way that tells prospective employ- erans unaware of their eligibility. tarum Institute, which won a state talking to can connect you.” cupation codes into comparable ers about the value of their skills.” skills and career paths in civilian New software that the state is in- jobs. There also will be “heat map- Fitting vets to jobs tegrating — a program called ping” capabilities designed to help The state is also focusing on em- Hero2Hired, developed and used by employers identify where concen- ployment. Several license and cre- the U.S. Department of Defense — is trations of veterans with particular dentialing changes passed by the designed to help veterans and em- skills are located — in and out of Legislature include measures al- ployers more easily identify where THINKBusiness state — and help vets identify places lowing military experience to vets fit and then connect them to where jobs exist. count toward qualification in oc- jobs. THINK MADONNA “The state has made a huge com- cupations such as emergency med- The state vets agency will work mitment over the past year and ical technician, firefighter, boiler to inform employers about the mil- has made quite operator and mechanical contrac- itary skills a bit of progress. Our business programs combine classroom tor. Such changes aim to help vets translator tool. There’s a lot of move into civilian careers while Tammy Carn- learning, ethics and real-world projects. work to do, and also benefiting employers, particu- rike, COO of the no one has lost Hone your business skills in areas such as: larly in areas of demand. Detroit Regional sight of that,” “We expect 30,000 to 50,000 veter- Chamber, said accounting, health care management, hospitality & tourism, said Jeff Barnes, ans to return to Michigan over the her organiza- information systems, international business, merchandising, director of the next five years,” Barnes said. “This tion will help agency, which marketing or human resources. includes veterans that are a good fit promote it. launched in for careers in IT, cybersecurity, The Detroit March 2013. SMALL CLASSES ON CAMPUS & ONLINE health care, electrical and mechani- chamber has Barnes Doug Wells Carnrike cal engineering, skilled trades, ad- been an ally of BUSINESS-SAVVY PROFESSORS Jr., an official at the Disabled Ameri- vanced manufacturing and public the state on veteran employment— can Veterans and a member of a team ASSOCIATE, BACHELOR’S, MASTER’S & safety.” both with the Governor’s Summit on of state and veterans service repre- A September 2013 Michigan vet- Veterans Talent, which it co-hosted CERTIFICATE PROGRAMS sentatives who helped develop the eran workforce study conducted by with the agency in November, and agency’s strategy, said he sees the state’s Bureau of Labor Market In- in brief showcases of vet talent at Michigan making progress toward formation and Strategic Initiatives said the chamber’s recent Mackinac Poli- Get ahead with a being a more veteran-friendly state. vets “should be prime candidates cy Conference. Having a central coordinating for many difficult-to-fill vacancies.” Madonna business degree! agency is important, said Wells, the The study said some “may find a DAV’s national service office super- Recruiting pitch from biz fairly easy transition into skilled visor and director of services for trades or other in-demand occupa- Veteran-friendly employers have the DAV’s Department of Michigan. tions,” such as military vehicle and a new place to get the word out, For example, the agency provided machinery mechanics who move as part of the state website vet service organizations with popu- into civilian jobs as industrial ma- michiganveterans.com. The site of- lation information that allowed the chinery or automotive mechanics, fers information, resources and organizations to be more effective in machinists or heating and air-con- support in education, employment, deploying service officers and to ditioning installers and repairers. health care and other areas. reach underserved areas. In addition, vets “with military In the site’s employer section, Service officers are also receiving experience in health care, profes- businesses can work to become training in federal VA law and edu- sional or scientific and technical oc- certified as veteran-friendly at cation about the benefits and Michi- cupations should be competitive bronze, silver and gold levels, gan resources that might help vets. candidates for some of the state’s based on their vet recruitment, Barnes said that because of in- most difficult-to-fill positions in its training and retention practices. creased access to service officers, most high-tech industries,” the The certification criteria also the state is on pace to have a 10 per- study said. give the state one way to track vet- cent increase in new enrollments The study also provides a snap- eran hiring. And at the upcoming for VA claims this year. And he said shot of Michigan’s veteran popula- veterans expos, the state will gath- the improved quality of submitted tion. Seventy percent are 55 or old- er data on how many people get in- madonna.edu claims has enabled vets to get faster er, meaning many have either terviews with employers and sub- Call 734-432-5361 to meet with an advisor. benefit decisions from the VA. retired or are nearing retirement. sequent employment. As more veterans access bene- “As more and more veterans re- Additional areas of veteran-relat- Register now while Fall classes are still open. fits, Michigan’s near-bottom na- tire, they will leave in their ab- ed performance — including VA MADONNA UNIVERSITY • SCHOOL OF BUSINESS tional ranking in federal per-per- sence some skills shortages,” the spending, claims development and son spending has risen. Barnes study said. That poses an opportu- outreach to veterans and their fam- 36600 Schoolcraft Road (at Levan Road) said VA per-capita spending in nity for returning vets who pos- ilies — are part of the state’s online Livonia, Michigan 48150 Michigan last year totaled $5,088, sess skills such as leadership and scorecard system for departments. DBpageAD_DBpageAD.qxd 6/30/2014 10:06 AM Page 1

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July 14, 2014 CRAIN’S DETROIT BUSINESS Page 15 CRAIN’S MICHIGAN BUSINESS Ex-soldiers’ tales from the front lines ... of biz JOHN JEFFRIES never going to get that contract un- KEITH KING es as being truly veteran-owned song in the movie til you have completed several con- and operated. “White Christmas” tracts with the federal government “Large corporations have been A asks, “What do you Getting work from as a subcontractor to a prime con- Get biz certified blunt about wanting to work with do with a general when he tractor.” veteran-owned businesses, but stops being a general?” For And the projects you do work on they want to avoid the fakes, the “have to go in as your own busi- frauds and the ripoffs,” he said. many vets, the answer is government takes veteran-owned; ness, not as work you have done as In addition, his group helps start your own company — an employee for another busi- bring those businesses together make your own job. planning, patience ness,” said Jeffries, who served in learn from others with corporate and government Vets can marshal a lot of the U.S. Marines from 1985 to 1989. customers. qualities essential to the When John Jeffries opened his So Jeffries mapped out a new It might seem natural for a vet- King also thinks vet entrepre- civilian entrepreneur. Orga- building systems engineering com- strategy for FISECx, in Lowell east eran entrepreneur to wave his mil- neurs should find people who pany, FISECx, of Grand Rapids. Then he mounted itary resume nization. Determination. know more than they do. two years ago, a counterattack. proudly. Noth- “People have told me your first Teamwork. he decided that “Instead of going after contract ing could be fur- two hires should be your lawyer But being an army of the first mission opportunities as a prime, we start- ther from the and your CPA. That’s not bad ad- one is not without its hard would be to go ed focusing on those prime con- truth for Viet- vice,” he said. lessons. after govern- tractors who were pursuing pro- nam-era vets. King also recommends going to ment work. The jects and pursuing subcontracting Freelance writer Rod “Being a Viet- the Service Corps of Retired Execu- mission failed. opportunities with them,” he said. nam veteran Kackley asked some vets- tives. He went through the SCORE Lessons were Jeffries also advised looking for was not to the program in 1984. turned-entrepreneurs to re- learned. Chief work with contractors that have a advantage of me “They will help you learn the among them: flect on their experiences, Jeffries good track record with the federal King or to most of us business. They will help you write The federal gov- what they’ve learned and — government. when we came a business plan and understand ernment wants to do work with most important, for a vet Fellow veterans also never home,” said Keith King, founder of what you are involved in,” King veteran-owned businesses, but should be shy of taking advantage Keith King & Associates, a full-ser- said. considering entrepreneur- government officials are not going of their veteran status, Jeffries vice advertising and public rela- “What it did for me was to get ship — what you should to put their career on the line and said. He has found a lot of corpora- tions firm in Detroit. me focused in the sense of under- know before you charge for- risk working with a rookie. tions looking to do business with Today, King wants all vets who standing that just because you Jeffries’ best advice for others veteran entrepreneurs. ward. have their own businesses to made $2 doesn’t mean you made $2 thinking about blazing the trail of “So, wear that on your coat proudly wear their service on of profit. And if you are not care- government work: “The contract- sleeves,” he said, “and let people their sleeves — and get certified. ful, what you really did was incur ing officers will all encourage you know you are a veteran-owned He is president of the National Vet- $2.10 in expenses.” to submit your qualifications, but business and are in business to erans Business Development Council, the reality is that you are probably support those values.” a nonprofit that certifies business- See Tales, Page 16 20140714-NEWS--0015,0016-NAT-CCI-CD_-- 7/11/2014 11:33 AM Page 2

Page 16 CRAIN’S DETROIT BUSINESS July 14, 2014 CRAIN’S MICHIGAN BUSINESS Tales: Vets-turned-entrepreneurs look back, offer advice ■ From Page 15 RODERICK RICKMAN ronmental and industrial services. business and corporate worlds, there Matt Sher- “A lot of them go out of business Being a supplier to the Detroit are some people who just shrug their wood, executive in the first month and it is because automakers through the worst shoulders and director of VetBiz of a lack of capital,” he said. years of the industry taught Rick- say, ‘We gave it a Central, said the Taylor also thinks that entrepre- Network; review man some tough lessons he wants good college try.’ franchise model neurs need to have a plan for giv- to pass on to other veterans who ” tracks well with ing back to their communities, your financials are running their own shops. This is where vets because of a much as he has done with the Real “Maintain your retained equity entrepreneurs military person’s Life 101 Scholarship Fund in the communities in which SET Enter- Roderick Rickman, chairman, in the company. Spend wisely. Stay should remem- characteristics focused on costs and overhead. ber their train- and training to prises has a presence: Detroit, Sag- CEO and founder of Rickman Enter- inaw, Pontiac, Flint, Chicago and Watch your budget and review ing, Sanders Sherwood follow orders prise Group in De- Cleveland. troit, said entre- your financial situation at least said. “The in- and procedures. once a month with a CPA,” he said. fantrymen out “Franchising is really trending “Business and community go preneurs who Sanders hand in hand,” he said. “If you are Keeping employees motivated is- there in the world will totally know upward with veterans now, and are veterans successful, it is not just all about n’t easy. His advice: “Have team that you want to make every battle everything is available from A to need to identify you. When God puts you in a posi- meetings or staff meetings a mini- an unfair fight so that you totally Z,” he said. “It’s no longer just advocacy organi- tion of wealth, it is your civic duty, mum of once a week. Let them win it. You are never afraid of fail- burgers and fries.” zations that can your moral duty to provide oppor- know where you are at with pro- The nonprofit VetBiz Central help them. ing, but you are going to do every- tunities to others.” “Network jects. Let them know what is in the thing you can to be successful.” helps vets start and run business- with your peers, pipeline. Get their input. Let them However, he said, vet entrepre- es. From an office in Flint, it cov- other entrepre- identify opportunities.” neurs have to unlearn some of what ers Michigan, Indiana, Ohio, Illi- Rickman neurs, other vet- they were taught in the military. nois, Wisconsin and Minnesota. eran entrepreneurs. It means a lot “If, in the military, you feel like Sherwood, who served in the U.S. JON TELLIER to be able to sit and share with you found your place … by follow- Army from 1994 to 1997, stressed the them,” he said. “It’s like therapy.” TODD SANDERS ing regulations, you still can do value of mentorship for veteran en- Rickman knows that need only that, but there is a lot bigger deci- trepreneurs. Relearn motivation; too well after betting his business sion space that you need to fill A franchise also provides that fortunes on the auto industry. with your creativity, with your mentorship — at a price, of course As soon as Rickman got out of ‘Do everything you drive, with your inquisitiveness.” — and can remove a lot of the risk find a mentor the U.S. Army after serving from from the startup equation. Many 1982 to 1988, he took what he had vets like that the business’s physi- The common wisdom is that cal blueprint, advertisements, au- learned about nuclear, chemical can to be successful’ men and women come out of their thorized products and, in some and biological warfare and used it military hitches MATT SHERWOOD cases, financing are all part of the to clean up the mess left behind by Todd Sanders, a retired U.S. Ma- with new confi- package, Sherwood said. the auto industry in Detroit. As rine Corps infantry officer and dence, a new But the most attractive part of a Rickman Enterprise Group rode founder of Sanders Solutions in Tra- ability to lead Franchise offers franchise to veterans, he said, is the tribulations of the automak- verse City, is surprised by the num- and a mission- the business plan and procedures. ers, payroll swung from 159 to a ber of people who are too cavalier first resolve. “It is natural for us,” Sherwood low of 89. with how they go after their goals. Jon Tellier, a checklist, orders said. “We say, ‘Give us the mis- Having survived the downturn, graduate of the “It’s almost like: ‘Well, I will give it sion, give us the checklist of items Rickman Enterprise Group now U.S. Military Acad- a shot. If it doesn’t work, I can always The veteran struggling to make we need to accomplish, and we can concentrates on construction and go out and get a regular job,” said his or her dream of entrepreneur- emy and a for- take care of those things.’ ” mer U.S. Army facility management and ware- Sanders, who describes his company ship come true could take a look at Tellier housing logistics, along with envi- as a decision-coaching firm. “In the buying a franchise. Ranger who served in Desert Storm in the 1990s, agrees that those are all fine SID TAYLOR attributes. But Tellier, who founded JetCo Solutions in Grand Rapids seven Make sure you have years ago along with his wife, Sue Schweim Tellier, said there also are some things that veteran entre- capital; give back preneurs need to unlearn from their days in the military. Do you really know what you “You motivate and lead soldiers are getting yourself into? Do you differently than you can a civilian really want this employee,” said Tellier, whose life for yourself company helps businesses find and your fami- government contracts. “Some- ly? Do you have times, you have to leave behind Reliable, modernized grid the right stuff? your leadership toolbox because Sid Taylor, those tools don’t work in the com- founder and mercial sector. It forces you to be a Energy is essential to the way we live, work and play. chairman of SET little more creative and explore Enterprises, ad- new opportunities in terms of ITC operates, builds and maintains the region’s vises beginning managing people.” veteran entre- Tellier also said the military’s Taylor electric transmission infrastructure. We’re a Michigan- preneurs to do “get it done at all costs” philoso- some soul searching before they phy doesn’t work in the real world. based company working hard to improve electric set off on the journey he began 25 Veterans, he said, have to real- reliability and increase electric transmission capacity years ago. ize that when they leave the mili- “Many of them don’t realize the tary and start a business, they re- throughout the Midwest. hard work it is going to take,” said ally have become an army of one. the U.S. Marine Corps veteran, who “In the business world, you fought in Vietnam in 1968-69. don’t have unlimited resources,” Once he or she decides that the Tellier said. “You still want to try entrepreneurial life is for them, to take that hill, but you have to be We’re ITC – your energy superhighway. Taylor said, they had better be more resourceful and clever.” sure they have the money to back He also recommended finding a their resolve. mentor. Tellier said the secret is “They need to sit down and talk teaming with someone who al- to an accountant or a lawyer,” he ready has gone down the path you said. “It can save you from so are just beginning. many mistakes if you sit down and “If you are a 4-year-old company get some professional advice.” that wants to grow,” he said, “try Taylor, who counsels would-be to find that 8-year-old company or www.itctransco.com entrepreneurs, finds that many 12-year-old company, someone are unrealistic about what it is go- who has been a little farther down ing to take to stay in business. the road.” DBpageAD_DBpageAD.qxd 7/9/2014 1:12 PM Page 1

Mission Driven, Battle Tested Deploy a Veteran to Your Workforce

Veterans’ skills easily transition to careers in:

Healthcare Advanced Manufacturing Public Affairs Management Supply Chain Management Human Resources Transportation Information Technology Skilled Trades Public Safety Mechanical Engineering Cyber Security

MVAA can help you utilize veteran talent to meet your business goals

To learn more about available resources and becoming a veteran friendly employer visit MichiganVeterans.com or contact the Michigan Veterans Resource Service Center at 800-MICH-VET 20140714-NEWS--0018-NAT-CCI-CD_-- 7/10/2014 3:02 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS July 14, 2014 CRAIN’S MICHIGAN BUSINESS Women vets face own struggles to enter civilian workforce

BY ALLISON BATDORFF The U.S. Department of Veterans Af- A growing number of women — program, along with Betsy Hem- She left the U.S. SPECIAL TO CRAIN’S MICHIGAN BUSINESS fairs reports that women vets 18-24 they make up almost 15 percent of ming. Air Force a are twice as likely to be unemployed the active-duty Armed Forces and Other national initiatives nur- decade ago, but Kate Logan wanted to get her than nonveterans of the same age 8 percent of veterans — are transi- ture entrepreneurship in woman has only recent- hands dirty when she joined the and that less than 20 percent of tioning into the civilian workforce. veterans. The Women Veteran Entre- ly connected to U.S. Army in 2005. So the Oxford na- women vets used their Montgomery How to get this talent pool into sta- preneur Corps, a three-year business the word “veter- tive became a diesel mechanic. GI Bill benefits in 2009. Woman vet- ble jobs and keep them in Michigan growth initiative, sprang out of an.” Fast forward eight years. Logan erans are also more likely to be mar- is a priority of the Michigan Women’s Count Me In for Women’s Economic In- “I would tell leveraged her military experience ried — and divorced — than nonvet- Commission, said Susy Avery, the dependence, a nonprofit business ed- people that ‘I into a career that is just taking eran women and, like Logan, have commission’s executive director. ucation community for women en- served my coun- shape, as the mother of three (with a children under the age of 17. The group launched an anony- trepreneurs, by way of the financial Paquette try,’ but I never fourth on the way) wraps up a mas- “I was scrambling. I had the mil- mous online survey this month services company Capital One. The considered myself a ‘veteran,’ ” Pa- ter’s degree focused in health care. itary’s education benefit but could- aimed at finding Michigan’s 50,000 U.S. Small Business Administration’s quette said. The word brought to She also still changes her own n’t afford the day care to take the woman veterans and learning how Veteran Women Igniting the Spirit mind a picture of older men hang- oil, she noted. classes,” Logan said. to better serve them, she said. of Entrepreneurship, or V-WISE, of- ing out at the VFW whose service People often assume that after Logan was one of the lucky ones, “All we have is the national data,” fers growth and startup courses. and experience were a world away the shudder of mortar shells in she said. Another vet helped her ap- Avery said. “We want to know our Still, numbers are small. Veter- from her own. Baghdad — the daily proving ply for a benefit that enabled her Michigan veterans and identify the an-owned businesses make up a “It never occurred to me to go ground of a male-dominated work- family to get by while Logan went services gaps. ... They’ve served slim 1.2 percent of all woman- there to find other people like me,” force and marathon 15-month Mid- back to school, joined the Michigan their country and now it’s our turn owned business. Paquette said. dle East deployments — that a civil- National Guard and laid her profes- to figure out how to serve them.” The National Women’s Business Now a managing partner at De- ian life would be easy peasy. sional foundation. Now, as a Detroit’s Inforum Center for Lead- Council reports there are 97,114 vet- troit’s KPMG LLP, Paquette helps They’re wrong, Logan said. sergeant in the Guard and a mem- ership, with support from Cooper eran women-owned businesses, steer support incentives for compa- “After all of that structure, I felt ber of Women’s Advisory Board for Oak- Standard Corp. and its Cooper Stan- primarily service-based in health ny service members and veterans. released to the wild,” she said. land County, she wants to return the dard Foundation, is also reaching care and social assistance (18 per- She learned many valuable The divorced single mom found favor by helping woman veterans out through Next4Vets, a leader- cent); other service industries (14 lessons from the military, like when herself caught in a trap common to caught in the same struggle. ship program for woman veterans percent); professional, scientific to lead and when to follow, Paquette women veterans — resources aplen- Just having someone who transitioning into the workplace. and technical services (13.9 per- said. She also learned the value of ty, such as GI Bill benefits, but few knows how to navigate the system The center, too, is in the informa- cent); and retail trade (12.9 per- flexibility and attention to detail. she could use given her personal sit- and show you the ropes is a huge tion-gathering phase, said Amy cent). Almost 90 percent of these “You tell everyone when you’re on uation. help, Logan said. Courter, a major general in the Civ- businesses are firms that the vacation, when you’re coming back Women vets are also less likely “Once you start eliminating the il Air Patrol, a former executive at founder is the only employee, with and where you are,” Paquette said to identify with their service pro- problems, you can find that bal- Livonia-based Valassis Communica- average receipts of $23,143. with a laugh, adding that those com- fessionally through military net- ance,” she said. “I just want to help tions Inc. and a member of the 1995 Part of the trouble particular to bat zone details can seem like over- works or translate their service these women get back on the right class of Crain’s 40 under 40. women is that they seldom lever- sharing in the civilian landscape. into career opportunities, Logan track so nothing is holding them Courter is one of Inforum’s two age their military experience or “In the workplace, they’re not as and other woman vets say. back.” lead designers and coaches in the networks, said Heather Paquette. concerned about you coming back.”

Loyalty, integrity, and professionalism— if you have military experience, you’re familiar with these attributes. And if you’re in the business community, you PUTTING OUR value these attributes in your workforce. HEROES TO WORK Kelly Services® is an ally to both.

More than 12,000 military veterans have been employed through Kelly® since 2011

FLEXIBLE OPPORTUNITIES, HIGH-VALUE SOLUTIONS Kelly is an approved Schedule 70, Schedule 621I, and Schedule 874V vendor with KellyConnect® specializes in a virtual program delivery model for the U.S. General Services Administration; we support major programs across multiple contact center management. This allows our business partners to agencies that include the DOD, DHS, DOE, as well as with civilian and intelligence offer extended customer care hours—while enabling our employees, communities. We also have a newly created partnership with the North Carolina including veterans and military spouses, to enjoy full-time work-from- National Guard. home opportunities. We’ve built strong partnerships with military veteran associations and with business FREE JOB SEARCH TOOLS leaders in order to forge strong connections that benefit everyone. Download Career Forward Military Edition at bit.ly/careerforwardMIL for job search Contact Kelly For business inquiries, contact Kim at [email protected]. information specific to your transition from military For job opportunities, visit joinkellyconnect.com today. service to the civilian employment market.

An Equal Opportunity Employer © 2014 Kelly Services, Inc. Z0683 kellyocg.com/kellyconnect DBpageAD_DBpageAD.qxd 6/24/2014 9:13 AM Page 1

FROM SERVICE MEMBER TO TEAM MEMBER

Many of our most valuable team members have also served our country. Quicken Loans is dedicated to providing lasting career opportunities for veterans, service members and their families. The support of your service is part of our culture, and we’re committed to your future.

Looking for your next tour of duty? Consider joining our family.

QuickenLoansCareers.com (800) 411-JOBS

Quicken Loans is an Equal Housing Lender. Licensed in 50 states. NMLS #3030 20140714-NEWS--0020-NAT-CCI-CD_-- 7/10/2014 3:03 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS July 14, 2014 CRAIN’S MICHIGAN BUSINESS RESOURCES FOR VETERANS American Red Cross. Helps purposes, and transportation to and Guard and Michigan Volunteer link to Shifting Heroes, part of the everything from benefits assistance, coordinate job certification training from jobs: Defense Force: michigan.gov/dmva. Michigan Shifting Gears program, financial assistance, food, for veterans and provides emmanuelhouserecovery.org. Michigan Small Business and which provides additional career transportation, housing, vocational development support to veterans. It rehabilitation, workforce scholarships to offset the cost to Employer Partnership of the Technology Development Center. includes one-to-one mentoring by a development, and health care attend the Red Cross nurse Armed Forces. U.S. Army Reserve Offers free training to veterans who Michigan veteran and provides referrals to counseling and disability assistant training program. Also and National Guard program want to launch or build businesses: provides emergency financial misbtdc.org/training. opportunities to make direct resources: liveunitedsem.org. provides employers a direct link to connections with employers who are assistance and resources to service members seeking University of Detroit Mercy Law veterans unable to receive other Michigan Veterans Foundation, specifically interested in hiring employment. The organization’s School. The law school’s Project government and social service Detroit. Provides services including veterans and are committed to website merged with the Office of Salute works with low-income agency aid. Recently partnered with transitional housing, life skills and creating a supportive professional the Secretary of Defense for veterans to help obtain their benefits MGM Resorts International on employment training, job environment for their veteran Reserve Affairs’ Hero 2 Hired while training pro bono attorneys. Boots to Business program, which opportunities and referrals, employees: mitalent.org/veteran. program to create a comprehensive More than 4,100 veterans have been helps veterans transition from transportation assistance and legal job portal for all service members: Salvation Army Eastern Michigan counseled to date, training more military service into management at assistance: h2h.jobs or employerpartnership.org. Division. Operates two transitional than 1,200 pro bono attorneys. The properties owned and operated by michiganveteransfoundation.org. housing sites for homeless veterans university’s Veterans Clinics address MGM Resorts (See story, Page 11). Home Depot Foundation. Partners Military OneSource. This U.S. in Detroit and one in Monroe. It also legal and professional needs of Applicants will receive help to rework with nonprofit organizations to Department of Defense program provides substance abuse treatment veterans: law.udmercy.edu. their resumes and prepare for address the housing needs of provides resources and support to and casework services: interviews. In Detroit, where MGM veterans, from building wheelchair active-duty National Guard and usc.salvationarmy.org. U.S. Department of Veterans Resorts operates the MGM Grand ramps and home renovations to Reserve service members and their Affairs. Center for Veterans Detroit, a 12-week management repairing and remodeling transitional families anywhere in the world. The Southwest Housing Solutions, Enterprise helps veterans start their training and transition support housing for homeless veterans: organization’s Employee Assistance Detroit. Piquette Square, a 150-unit first business and run it after it is program will be offered: homedepotfoundation.org/page/ Program section on its website apartment project in Detroit, launched: vetbiz.gov, a federal redcross.org/mi/detroit. veterans. provides access to articles, podcasts provides mental health counseling, government portal for veteran-owned Brain Injury Association of and videos, among other resources, substance abuse treatment, on-site businesses. JVS. The Veterans Empowerment specific to military programs and job training, computer labs, Michigan. In conjunction with the Tools program helps vets with U.S. Small Business U.S. Department of Veterans military family concerns such as educational programs and other service-related disabilities career, education, financial and legal support services to help veterans Administration. The SBA helps Affairs, the association offers a reintegrate into the community. financial institutions with lending to program to help business owners information: militaryonesource.com. develop healthy, independent living Services include support groups, skills: swsol.org/piquette_square. veteran-owned small businesses understand and deal with veterans one-on-one support, and vocational Motor City Veterans Village. through the Patriot Express loan with brain injuries or post-traumatic and educational counseling. To Helps veterans and their families TechShop Detroit. This fully program: sba.gov/loanprograms. The stress disorder who are having a qualify, a vet must have a 10 percent navigate the services provided by equipped fabrication and design SBA also instituted a new online hard time keeping a job: biami.org. service-connected disability, an open nonprofits and the VA in Michigan: space, which includes everything contracting tutorial to help veterans C3 Workforce Inc., Southgate. A case with the VA Vocational michiganveteranresources.com. from plasma cutters and 3-D and military spouses who own small staffing and placement agency that Rehabilitation Unit and Employment National Foundation for Veteran printers, offers free one-year businesses identify and win federal specializes in finding jobs for Chapter 11 services and be referred Redeployment. Offers career memberships good at any TechShop contracting opportunities: veterans: c3workforce.com. to JVS by a VA counselor. Sign up at opportunities for veterans in the oil and across the country. TechShop CEO sba.gov/sba-learning-center. Through www.ebenefits.va.gov/ebenefits/ gas industry. Will act as a conduit for Mark Hatch is himself a vet: the Boots to Business program, the Emmanuel House Recovery jobs or visit jvsdet.org. techshop.ws/veterans. Program, Detroit. Provides housing, training, human resource networking SBA works with the Defense drug and alcohol rehabilitation, Michigan Veterans Affairs Agency and financial support: nfvr.org. United Way for Southeastern Department to provide employment assistance, resume (See story, Page 13). New state Pure Michigan Talent Connect. Michigan, Detroit. The nonprofit’s 2- entrepreneurial training to service writing, interview skill-building, a agency oversees veterans services in State employment services for 1-1 information hotline and database members transitioning out of active temporary address for employment addition to the Michigan National veterans. The website also offers a offers veterans referrals for duty. B2B is designed to assist about 250,000 veterans annually to seek self-employment opportunities and develop a feasibility survey and business plan: boots2business.org. THE MILLER LAW FIRM Veterans Business Outreach Center helps veterans launch Changing the Odds in our Clients’ Favor businesses. The nonprofit gets most of its funding from the SBA. In May, the SBA announced its Veteran Pledge Initiative, a commitment by its top national, regional and community lenders to collectively increase their lending activity to vets by 5 percent a year for the next five years: vetbizcentral.org. Click on registration link to fill out a questionnaire used to design a one- on-one counseling session. For information, visit sba.gov/content/veterans-business- outreach-centers-0. Veteran’s Haven, Wayne. Provides food, clothing, transitional housing and medical supplies: (734) 728- 0527 or vetshaveninfo.org. Volunteers of America-Michigan. Provides two employment programs: the Homeless Veterans Reintegration Program, which serves male veterans, and the Female and Families Homeless Veterans Reintegration Program, which serves women and families of veterans. Employment and housing programs provide case management services, The Miller Law Firm is Recognized transportation assistance and other clinical services: voami.org. For a full as a Leader in Complex Business Litigation list of programs and services, visit voami.org/Services/Veterans- Programs. Q Automotive Supplier Counseling Q Commercial and business lawsuits Wall Street Warfighters Foundation. Philadelphia-based nonprofit trains wounded veterans Q Employment litigation Q Shareholder and partnership disputes for careers in finance. (888) 439- 3935. Applications are available online, and those accepted to the Referral fees honored on contingency fee cases program don’t need to relocate to Philadelphia: wallstreetwarfighters.org. 950 West University Drive, Suite 300 248-841-2200 millerlawpc.com Wayne Metropolitan Community Action Agency. Refers veterans to Rochester, Michigan 48307 job training programs: waynemetro.org. DBpageAD_DBpageAD.qxd 7/10/2014 4:48 PM Page 1

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Meet these local heroes who work for some of the region’s top companies.

Jeffrey Cassidy Jeffrey Cyprus Stacey Harris Healthcare Analyst Instructor Manager, Ninja Service Team Hire Date: October 2013 Hire Date: June 2014 Hire Date: March 1998 Branch of Service: U.S. Army-Michigan Branch of Service: U.S. Marines Corps Branch of Service: U.S. Army Army National Guard Highest Rank: Staff Sergeant Highest Rank: Sergeant Highest Rank: Sergeant First Class Mr. Cyprus has successfully applied skills While in the military, Ms. Harris gained As the agency responsible for Michigan’s he learned in the Marines to the technical experience supervising and performing veterans, it is important to the Michigan world. Placed at a robotics company personnel and admin functions which Veterans Affairs Agency (MVAA) to have through veteran-owned Arrow Strategies translated to her current duties as a subject matter experts on staff as well as part of Arrow’s Operation Restore Valor, VWDIÀQJVXSHUYLVRU,QDGGLWLRQVKH as those with lived veteran experiences. his motivation and comfort in front of an attended professional leadership training 0U&DVVLG\ÀWVERWKUROHVDQGUHSUHVHQWV audience showed he could translate his to develop her management skills. Currently the MVAA in the most positive manner military experience to the private sector. “It she manages a large team of employees possible. His military experience gives him was great being able to work with veterans at Kelly Services, Inc. “It is so important WKHDELOLW\WRFRQÀGHQWO\DQGHIIRUWOHVVO\ that understood what I was capable of,” he for morale to be high at all times and to create relationships with new partner said. “Arrow Strategies is an outstanding operate with a sense of camaraderie,” organizations as well as engage in veteran organization that really puts the needs of she said. “This was a tangible asset for outreach programs and speak to veterans WKHLUHPSOR\HHVÀUVWDQGJRHVRXWRIWKHZD\ me based on my military experience and I from their perspective. to provide the necessary support.” believe that’s why I promote a high sense of morale with my team today.”

Larry Hartz Craig Hawkins Lindell Holm Todd Wagner Tier II-Team Manager Project Engineer, Mechanical Director, Michigan Veterans Trust Fund Mortgage Banker Hire Date: July 2012 Engineering Hire Date: March 2014 Hire Date: June 2014 Branch of Service: U.S. Navy Hire Date: May 2014 Branch of Service: U.S. Marine Corps Branch of Service: U.S. Air Force Highest Rank: E-4 Branch of Service: U.S. Army-Michigan Highest Rank: Lieutenant Colonel Highest Rank: E-4 Senior Airman Army National Guard, U.S. Air Force- As a former E-4 in the U.S. Navy, Mr. Michigan Air National Guard Mr. Holm brings practical leadership In his military role at Wright-Patterson Air Hartz’s leadership and communication Highest Rank: Staff Sergeant experience, an understanding of the Force Base, Mr. Wagner provided his fellow skills have helped him be an effective challenges faced by military service VHUYLFHPHPEHUVÀQDQFLDOFRXQVHOLQJ² manager at KellyConnect. He is able members and management tools to After completing deployments in Panama, H[SHULHQFHWKDWPDGHKLPDJUHDWÀWIRU to use those skills in his current role to the Michigan Veterans Affairs Agency Quicken Loans. As a mortgage banker Estonia and Afghanistan, Mr. Hawkins had engage and motivate team members to 09$$ +LVH[SHULHQFHDVDQRIÀFHU with Quicken Loans, he helps clients with the perfect job in mind. He found that job meet and exceed performance goals while makes him familiar with supporting as a project engineer at an automation WKHLUKRPHSXUFKDVHRUUHÀQDQFHQHHGV managing the fast-paced and sometimes service members who are dealing with life His employer said, “Todd brings the drive, solutions provider through Arrow stressful environment of the production challenges, including assisting veterans determination and professionalism that we Strategies’ Operation Restore Valor. “This LQÀQDQFLDOGLVWUHVVWKURXJKWKH0LFKLJDQ often see from our veteran team members ÁRRU+LVDELOLW\WRXVHWKRVHVNLOOVLQKLV position exercises all of the engineering current role also has helped increase the Veterans Trust Fund. Lindell said, “Being a in every area of the company.” skills that I have acquired in the past as well communication between departments. part of the MVAA allows me to continue to as my experience with the skilled trades play a part in taking care of our nation’s and in the military,” he said. “I would like to veterans. It’s a very rewarding mission.” thank the entire staff at Arrow Strategies in JXLGLQJPHWRÀQGP\SHUIHFWMREµ 20140714-NEWS--0022-NAT-CCI-CD_-- 7/10/2014 5:22 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS July 14, 2014

United Monthly U.K. Kingdom WHERE MICHIGAN DOES BUSINESS

ith a 2013 GDP of $2.49 trillion, the United Kingdom Whad the ninth-largest economy in the world. Crain’s monthly World The unemployment rate as of 2013 was 7.2 percent. Watch report showcases Michigan companies lead- Major industries include machine tools, electric power SCOTLAND equipment, automation equipment, metals, chemicals, ing the way in international business, as well as those ex- coal and textiles, among others. The U.K. exports manu- panding their global opera- factured goods, fuels, chemicals, food, beverage and to- tions. Each World Watch bacco. Sunderland Monthly features a different Major trading partners are Germany (11.3 percent), N. IRELAND country. If you know of a the United States (10.5 percent) and the Netherlands (8.8 Michigan company that ex- ENGLAND percent). The U.K. imports manufactured goods, ma- ports, manufactures abroad Ellesmere Goole, Altair Engineering’s regional office in Bristol Scunthorpe chinery, fuels, and foodstuffs from Germany (12.6 per- or has facilities abroad, IRELAND Port cent), China (8 percent) and the Netherlands (7.5 per- email Jennette Smith, man- Coventry Elmdon Altair Engineering cent). The U.S. is the U.K.’s fourth-closest import and WALES Colchester aging editor, at London, export partner. Cwmbran, Bridgend Based: Troy [email protected]. Bath Kingston In 2012, weak consumer spending and subdued business Upon Operations: In England, Royal Leamington investment weighed on the economy; however, in 2013, Plymouth, Thames Spa (country headquarters), Bristol (region- Millbrook Southampton GDP grew 1.4 percent. Agriculture remains important, COMING UP al office), Manchester (regional office) with 2 percent of the labor force producing almost 60 per- Ⅲ August: Thailand/Malaysia Employees: 70 cent of the country’s food. Ⅲ September: Japan Products: Proprietary software and ser- aging director, U.K., Iberia and South vices, which include engineering simula- America; Paul Dyer, RNS operations direc- tion software, software for on-demand com- plants in Luton and Ellesmere Port, a parts Clients: International insurance agents tor, U.K.; James Lever, RNS business devel- puting and software for industrial design warehouse in Toddington and headquar- and brokers opment director for the U.K.; David Ballew, Top executive: Hakan Ekman, managing ters in Luton that houses sales and market- More information: Kaufman Financial ac- HCS global customer development director director, northern Europe ing quired Chesterfield in 2012 and established Clients: Ford, Jaguar Land Rover, Peugeot & Clients: Jaguar Land Rover, Airbus, Unilever, Employees: 3,500 Cranbrook Underwriting later that year. Citroën, BMW, Fiat, Volvo, JCB and Mondelez BAE Systems, McLaren, Bombardier Trans- Products: Vauxhall, a subsidiary of GM International (Kraft Foods), among others Adam Opel AG portation, Ford subsidiary , manufactures the Astra five-door, Astra Sports Tourer Lear Corp. and the light commercial vehicle Vivaro. It Based: Southfield NSF International also sells the full European Opel/Vauxhall Operations: Manufacturing in Alfreton, Based: Ann Arbor product portfolio badged as Vauxhall Motors Coventry, Redditch and Sunderland, England Operations: Offices in Oxford, Oakdale Ltd. Employees: 970 and York, England Top executive: Tim Tozer, chairman and Products: Fully assembled seats and seat Employees: 339 employees in the U.K., in managing director, Vauxhall Motors components (foam and fabric) addition to a network of 400 contractors More information: The Luton plant is the Top executive: Gideon Jewel, president, Services: A wide range of certification, only high-volume commercial vehicle man- Lear Seating Europe-Africa testing and safety auditing services for a ufacturing plant in the U.K. Clients: Jaguar Land Rover and Nissan. range of industries and products. Fabric is sold to multiple OEM customers. Top executives: Tom Chestnut, vice presi- Autoliv Inc. employs 250 in the U.K. George P. Johnson Co. dent, global food division; Bob Pietrowski, vice president, global health sciences; Tarik Based: Auburn Hills Autoliv Inc. Bellahcene, managing director/European Operations: London office Agency for the Evaluation of Medicinal Based: Auburn Hills Employees: 100 Products, water division Operations: Congleton, England Products: Experience marketing via event Employees: 250 management planning, digital insight and Products: One-piece woven coated airbags social media planning TI Automotive Ltd. for first-impact and roller curtains, driver Top executive: Kevin Jackson, senior vice Based: Auburn Hills and pedestrian protection airbags president of sales and marketing Top executive: Alan Pennington, managing Clients: Cisco, IBM, Gartner, Samsung, BMW, Operations: Fuel systems plant in Deeside, director, Airbags International Ltd. GSM Association Wales; administration site in Oxford, Eng- Clients: VW Group, PSA Peugeot Citroen, More information: 2014 is 100th anniversary Metaldyne LLC employs 100 in Halifax, England. land; satellite offices in Sunderland and Ford, Volvo, Daimler, Fiat/Chrysler, Jaguar Land Burnaston, England, and other operations Rover, General Motors, Hyundai/Kia, Toyota, in Telford, England BMW Group, Scania Truck, Nissan Inteva Products Metaldyne LLC Employees: 240 Based: Troy Based: Plymouth Products: Coex fuel tanks, mono layer fuel tanks, filler pipes, brake and fuel lines and Operations: The Birmingham (England) Operations: Halifax, England Beringea LLC bundles, fuel line assemblies Technical Center provides development, Employees: 100 Top executive: Tim Edwards, group con- Based: Farmington Hills testing and advanced manufacturing sup- Products: Viscous crankshaft dampers troller Operations: Sister office in London port. Top executive: Keith Eagle, managing di- Clients: Toyota, Honda, General Motors, Nissan, Employees: 15 Employees: 10 rector, Metaldyne International (U.K.) Ltd. Products: Private equity, growth capital Jaguar Land Rover, BMW Bentley, Aston Martin Products: Engineering support and devel- Clients: Volvo, Renault, Mack, Cummins, De- and subordinate debt opment for latches and actuators troit Diesel, Scania, Iveco, VM Motori, Audi, Top executive: Malcolm Moss, co-founder Top executive: Rupert Mander, senior man- Porsche, Rolls Royce and senior managing director TRW Automotive Holdings Corp. ufacturing engineering manager More information: Dampers are precision- Clients: Audi Based: Livonia engineered using cast iron, steel and alu- Operations: In England, engineering cen- Bissell Homecare Inc. minum to meet customer requirements. ters in Solihull and Cirencester; manufac- Based: Grand Rapids Kaufman Financial Group turing facilities in Birmingham, Peterlee, Operations: Sales and marketing office in Based: Farmington Hills MSX International Inc. Sunderland, Burnley and Wrexham; after- Slough, England Operations: Owns London-based Chester- market facilities in Shirley and Wrexham. Based: Detroit Employees: 16 field, a Lloyd’s of London broker, and Cran- Also, Pontypool, Wales. Operations: Headquarters in Colchester, Products: Floor care products brook Underwriting, a London-based under- Employees: 2,635 Top executive: Alistair Roberts, managing writing agency England Products: Panel switches, column switch- director, Bissell Europe, Middle East and Employees: 50 Employees: 330 es, hidden switches, window lift switches, Africa Products: Specialty insurance products Products: Retail Network Services parts rotary connectors, electronic control units Clients: Argos Ltd., Currys, Ideal TV, Bissell and services such as aviation, kidnap and and accessories sales programs, dealer for various components, foundation brakes, Direct, Amazon, Lakeland, Tesco ransom, marine, personal accident and process improvements, training, technical remote acceleration sensors, others. high-risk territories support services and warranties to vehicle Top executives: Martin Furber, human re- Top executives: Chesterfield: James Steven- manufacturers. Human Capital Solutions sources director global steering; Steve Bat- General Motors Co. son, managing director; Cranbrook Under- provides vendor-neutral managed service terbee, finance director, global steering Based: Detroit writing: Bob Katzaros, chief underwriting of- provider workforce management solutions. Clients: All major OEMs Operations: In England, manufacturing ficer Top executives: Felix Serrano, RNS man- — Compiled by Natalie Broda 20140714-NEWS--0023-NAT-CCI-CD_-- 7/10/2014 4:58 PM Page 1

July 14, 2014 CRAIN’S DETROIT BUSINESS Page 23

IF WELL DOESN’T SELL ... Change the business model — but be careful. See Stage 2 Strategies, Page 29

growing small businesses

EDITOR’S NOTEBOOK

Amy Haimerl is entrepreneurship editor and covers the city of Detroit. Going global She can be reached at (313) 446-0416 or at [email protected] How can small biz get beyond border? 5 firms recount the roads they traveled he world is a big place. So It’s different for every company and in So how do Southeast Michigan firms Amy Haimerl it’s hard to picture how to every industry. But in 2012, a total of with global ambitions get that elusive enter an entirely different 15,107 Michigan firms made it happen — first toehold in another land? Crain’s country, with its unknown nearly all them small to midsize business- asked five area businesses to share how Teaching artists they got from vague idea to “Hey, this T idiosyncrasies and expecta- es, according to the International Trade Ad- ministration. That activity added up to could actually work.” how not to starve tions, on limited resources. Do you nearly $60 billion in exports just last year Ⅲ Rossetti Associates Inc., this page jump on a plane, stack of business cards “The arts have always been about and accounted for 1.1 million jobs. Ⅲ Fast Hands Hockey LLC, Page 25 entrepreneurship because artists, at in your pocket, and hope for the best? Ⅲ Essential Bodywear LLC, Page 26 some level, have to feed themselves,” Attack the Internet and prepare to send COMPANY PROFILES Ⅲ TD Industrial Coverings Inc., Page 27 said Matthew Seeger, dean of Wayne awkward emails? Hire a consultant? BY GARY ANGLEBRANDT Ⅲ Mindo Chocolate Makers LLC, Page 28 State University’s College of Fine, Performing and Communication Arts. We all know the starving artist meme: You must suffer for your art, bleed for your creativity. The business of living is dirty and grubby ROSSETTI ASSOCIATES INC. and counter to a Target country: South Korea higher calling. Breakthrough moment: A Seeger calls foul Korean associate’s network on that notion. gave the firm an entrée it had What Seeger sees been seeking. Rossetti on campus are arts eventually landed a lucrative students who are stadium deal in Seoul. passionate about Lesson: Networks and Seeger the idea of personal relationships are entrepreneurship, using their creativity critical to global dealing, as a way to chart their own paths. especially in Korea. After all, some of the greatest Detroit artists were also entrepreneurs, from Motown to fashion designer Anna Sui. “The film students are forming film companies when they are sophomores and juniors,” he said. “The students in music are gigging and forming companies to support their performance activities.” Seeger is also figuring out how to support and nurture entrepreneurship in his students. It has been a passion of his since he became dean of the college four years ago. It’s also part of a larger national movement. At every conference he attends, the topic of entrepreneurial education is at the top of the discussion. “Increasingly, it’s our mission not just to be just great artists but teach them KENNY CORBIN how to feed themselves,” Seeger said. Rossetti Associates made a name for itself in South Korea, thanks to the guidance of a Korean colleague, said Jim Renne, the Detroit firm’s principal. “If Recently, the school hosted a you come in as an American saying, ‘I know about all this stuff, let me talk to your mayor,’ it’s a hard way to approach and get business done,” he said. Business of Art workshop, teaching some of the skills found in the business school to budding painters and writers. It is also working to Local contact was key to landing South Korea project develop an entrepreneur-in-residence program and mentoring opportunities. Rossetti Associates Inc. has a who’s-who proached by a connection in Seoul who need- not great luck in the past,” Renne said. “We Seeger is also finding ways to make roster of sports-arena clients. The Detroit- ed help with a stadium, a Rossetti specialty. wanted to make sure we better understood sure business and arts students based architectural design firm has been in- The $400 million project, headed by Hyundai the strength of our partner and see how real mingle. He doesn’t just want to teach volved in everything from Ford Field and The Construction, was for a 20,000-seat soccer the project was. This first meeting allowed arts students business plans. He Palace of Auburn Hills locally to the training venue in Incheon, home to Incheon United FC. us to better understand all that.” wants to teach engineers to tap their creativity to enhance their facility of the Los Angeles Clippers of the Na- The project also included 600,000 square feet The Korean firm had a strong portfolio entrepreneurship. tional Basketball Association. of retail, three 50-story residential towers and had worked with Hyundai Construction in the past, so Renne felt confident arranging “It’s not just the art students that Despite its national reputation, however, and a parking structure for 1,500 vehicles. need to access the business Rossetti President Matt Rossetti knew the A meeting in Seoul was arranged between more trips to South Korea. material,” Seeger said. “The business company needed an overseas project. the two firms. On the second visit, they signed the deal. The stadium was completed in 2012. students need to access the creativity “We knew we needed to ‘go global,’ whatev- In true Korean business style, the Rossetti and the innovation and the activities er that meant,” said Jim Renne, the firm’s team was treated to dinner and drinks — Ko- The project opened the possibility of contin- of the artist. We really hope that they principal and director of sports design. rean barbecue and soju, or Korean vodka — ued business in South Korea, a market Rossetti can all be together. That creates a at a nice restaurant in Seoul. The Rossetti sees as primed for a spate of stadium building. dynamism that is critical.” Several misfires had occurred in the late The firm is looking at a handful of projects with team went into it with a measure of skepti- And maybe even feed themselves. 1990s in attempts to get into South Africa and the country’s sports ministry, Renne said. Taiwan. The big break came in 2007 when a cism based on its previous experience. South Korean associate at Rossetti was ap- “We were cautious, knowing we had some See Rossetti, Page 24 20140714-NEWS--0023,0024-NAT-CCI-CD_-- 7/10/2014 4:46 PM Page 2

Page 24 CRAIN’S DETROIT BUSINESS July 14, 2014 Second Stage Rossetti: Drawing up global strategy ■ From Page 23 Rossetti also hopes to get some come down,” Renne said. “We school, college, past jobs and so on. of the work from the 2018 Winter came in at a low level through a These connections are main- Olympics in the Korean city of Korean colleague who was able to tained much more closely than in Pyeongchang. infiltrate.” the West. Everyone has a network Rossetti was able to do all this This is more important than it of “seniors” and “juniors” from because it had a Korean colleague might seem. A great amount of Ko- these circles, and it’s expected that to carry the firm across the cultur- rean business and career activity they will call on one another for fa- al threshold. is done through “circles” of ac- vors — so much so that it’s hard to “We didn’t start at the top and quaintances — friends from high get much done without them. “If you come in as an American saying, ‘I know about all this stuff, let me talk to your mayor,’ it’s a hard way to approach and get busi- ness done,” Renne said. HAWKER 800XP Seung Lee, the senior designer and associate at Rossetti who made the first connection on the Incheon project, retired after the stadium was built. Now project manager Sung Jung makes the rounds in South Korea, building on the mo- mentum from the stadium project as well as Rossetti’s work for anoth- er Korean company: LG Chem, part of the LG Corp. conglomerate. NEW ARRIVALS Rossetti was lead architect for LG Chem’s Michigan battery plant in FRACTIONAL AND MANAGED BUSINESS AVIATION PROGRAMS. Holland. Jung managed that project. SERVING ALL SOUTHEASTERN MICHIGAN. Jung, a Korean native who at- tended the prestigious Yonsei Uni- versity in Seoul before coming to the U.S. for graduate studies, works his connections — such as a family one to LG Corp. — and uses Rossetti’s growing resume with Korean clients to develop more inroads. He has found work- CORPORATEEAGLE.COM ing with sports teams and leagues directly, as well as local govern- ments and universities, to be more effective than going through other firms. Rossetti has had to get acclimat- ed to working in another culture. There are different industry con- ventions. Being an outsider firm TOAST + means sometimes being left out of the conversation when important things change, forcing Rossetti to play catch-up. The language barrier remains a source of unease. Managers used TECHTALK. to handling their own communica- tions can’t help fretting over whether some important nuance was missed in an email. Or in a meeting where English is not the JOIN US language at the table, it’s mystify- ing to hear three minutes of trans- lation after two guys have spoken If you’re part of a start-up or growing technology firm, register to join us for 20 minutes straight in Korean, much of it probably dismissible for this four-part breakfast series presented by industry experts. Each session small talk. But it makes for an un- easy situation nonetheless. will focus on a different topic to help you develop the framework and tools Renne also learned not to take necessary to continue growth. Seating is limited so register today. things for granted. Deep into the stadium project, he visited the site and saw that Rossetti’s name did- n’t appear on any of the signs. “It Reserve your space now: toast.plantemoran.com made me lift an eyebrow and say, ‘What’s going on here?’ ” he said. Thanks to Jung, the local press was aware Rossetti designed the SESSION 1 SESSION 3 stadium by the time it opened. But July 29, 2014 \ 7:45 – 9:45 a.m. September 23, 2014 \ 7:45 – 9:45 a.m. the firm had cut it too close. Plante Moran, Detroit Plante Moran, Detroit “We were barely known by the time it opened,” Renne said. “It Business Basics for Growing Firms – Driving Growth and Delivering Value – was an important lesson for us.” What You Need to Know to Succeed Strategies to Maximize Your Firm’s Worth However, the larger goal of building an international reputa- tion was met. Renne has found SESSION 2 SESSION 4 that conversations with people August 26, 2014 \ 7:45 – 9:45 a.m. October 28, 2014 \ 7:45 – 9:45 a.m. from other countries move along Detroit Athletic Club, Detroit Grand Circus, Detroit more quickly once they know Ros- setti has done work overseas. Surefire Ways to Attract, Retain, and Grow from Entrepreneur to Strategic “They recognize you’re not an Motivate Talent Business Leader amateur in the global market,” he said. “It’s not so hard to bring you over and work with you.” 20140714-NEWS--0025-NAT-CCI-CD_-- 7/11/2014 9:49 AM Page 1

July 14, 2014 CRAIN’S DETROIT BUSINESS Page 25 Second Stage Buyer’s bid to check middleman gives firm fast break to Sweden Fast Hands Hockey LLC defied all odds. FAST HANDS HOCKEY LLC The Northville-based company Target country: Sweden, by set up a bare-bones website and ex- accident pected orders to fall from the sky. Breakthrough moment: A Swedish And they did. customer began buying directly Jim Marinoff had developed lit- from Fast Hands instead of going tle pipes that, when bent into a half through a Canadian distributor. octagon, serve as a tool for honing Lesson: Build your invention; it can hockey-puck-handling skills. He take you places. thought he could sell them, so he When Sweden launched the site in September on average, with about 25 percent came calling for 2012 and did a pittance of Web mar- of that headed to Europe. his contraption for perfecting puck- keting by posting a few notes about Shipping has been thornier and more expensive than Marinoff handling skills, it in online hockey forums. Jim Marinoff imagined. Russia has been particu- Almost immediately, orders wasn’t sure he started coming at a rate of about 20 larly frustrating. On both of the was ready to take a day for the $80 product. two occasions Marinoff has sent a shot at global When Marinoff posted an in- small shipments to new customers distribution. But structional video on his site in there, the shipments disappeared. with an assist December and sent it to a Canadi- “I talked to the customers there from a expert — and they said it happens all the his wife, Angela an distributor of hockey gear, — Marinoff has things started to really take off. time,” he said. “They say it gets stolen at the port by the mafia. parlayed his The company, HockeyShot, placed Swedish success “Russia is a huge hockey coun- an order of 100. A week later, it into orders from try and I just can’t get shipments ordered another 200. Canada and the in there. That’s been the biggest A week or two after that, Mari- United States. disappointment.” noff got an unsolicited call from a ANTHONY BARCHOCK man in Sweden looking to order 150 units and have them shipped by air. The caller was the person buying the product from Hock- eyShot, and he wanted to cut out the middleman. So he called Mari- noff directly. And just like that, a global busi- Invest Wisely ness was born. But Marinoff, a strength and Choose an Advisor that Sees the Bigger Picture conditioning coach, wasn’t exactly positioned to be in international trade. He wasn’t thinking about WORLD CLASS MONEY MANAGERS | TRANSPARENT FEES | INDEPENDENT ACTIVE TAX LOSS HARVESTING ADVANCED TAX PLANNING how to become a global distributor and how to manage cultural land- mines. Instead, he came up with the Fast Hands tool from teaching We implement tax loss harvesting for our clients every month, whereas other advisors may do this once a year at most. kids how to play hockey. “I had all these cones set up for Come discover how Schechter’s sophisticated approach and technology can guide your investment portfolio to better results. these little squirts, and the little Studies show this process can add 1.5% to 2% to your after tax return. squirts kept knocking them over,” he said. That’s Opportunity. It’s also been helpful that his wife, Angela, happens to be operations di- rector of Taylor- based logistics company ARC Supply Chain So- lutions Inc., which takes care of Mari- Angela Marinoff noff’s shipping and gives him a friendly rate on storage. “If it wasn’t for my wife and the logistics, I don’t think this would have taken off,” Marinoff said. “She took care of everything.” Sales in Sweden, a major hockey 248.731.9500 | WWW.SCHECHTERWEALTH.COM | BIRMINGHAM, MI | NEW YORK, NY

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A 75 INVESTMENT ADVISORY & ADVANCED LIFE INSURANCE DESIGN RSARY ca, who began placing orders. A NNIVE “It didn’t take off in the U.S. and Securities may be offered through NFP Securities, Inc. (NFPSI), Member FINRA/SIPC. Investment Advisory Services may be offered through NFPSI or Schechter Investment Advisors, LLC. Schechter Investment Advisors, LLC. and NFPSI are not affiliated. Canada until Sweden. Sweden did it all for me,” Marinoff said. He ships 700-800 units a month 20140714-NEWS--0026-NAT-CCI-CD_-- 7/11/2014 9:49 AM Page 1

Page 26 CRAIN’S DETROIT BUSINESS July 14, 2014 Second Stage OLD FASHION IS NEW FASHION Consultant helped lingerie firm end its duress for success ESSENTIAL BODYWEAR LLC Target region: Asia Breakthrough moment: Finding a Cantonese-speaking consultant through an American living in Mexico Lesson: A consultant is worth the fee if he or she can find and negotiate with the right partner.

Many a small-business owner has thought going global should be easy. Talk of the “global economy” has been going on for decades, so GLENN TRIEST finding a manufacturer in a far- After years of pursuing global sales, Carrie Charlick (left) and Marcia Cubitt of flung country should involve a Essential Bodywear found that they should have hired a consultant from the get-go. Web search and copying a few email addresses, right? They met for drinks, and he rec- If they had to do it all over again, “People that we talked to in the ommended they speak with a con- they would have hired a consul- industry kept saying that,” said sultant in the Boston area who tant right from the start, Charlick Carrie Charlick, who co-owns Es- speaks Mandarin. said. sential Bodywear LLC with Marcia They did, and the consultant “She got us where we’re at to- Cubitt. “If someone says ‘no-brain- found a manufacturer, saving day,” she said. “It was the best er’ to me one more time ... .” Charlick and Cubitt headaches. money we ever spent.” Their Commerce Township- based business sells bras and other lingerie through Tupperware-style home parties. The women were in- terested in starting their own pri- vate label line, and they assumed it would be easy to find a manufac- turer. They went online and found an industry website that listed over- seas manufacturers and contact information for their sales offices. They contacted manufacturers in China and the Philippines. Most didn’t respond. The ones that did had no inter- est in the small product runs Es- sential Bodywear needed. Manu- facturers’ unit minimums usually ran into the tens of thousands; Charlick and Cubitt needed maybe a few thousand. “They wanted the Targets and Wal-Marts of the world,” Charlick said. It went on that way for a year. But then “out of the blue,” the New York City sales office of a Chi- nese manufacturer cold-called Es- sential Bodywear. The manufac- turer could do a private label deal, from design to production. “The minimums were still high, but at least they were still willing to work with us,” Charlick said. “Others weren’t.” It took several meetings to com- WE WERE BUILT FOR BUSINESS, plete the deal and designs. But the trips were to New York, not Shang- JUST LIKE YOU. hai, so it wasn’t a major hurdle. For four years, that relationship worked out. But in 2010, Charlick The GVSU Seidman College of Business full- or and Cubitt overhauled their bra part-time M.B.A. is raising the bar. West Michigan’s designs and decided to find a new manufacturer with more forgiving premier business school now has an equally premier minimums. building, enhancing downtown Grand Rapids’ They had thought about making growing skyline and economic climate. THE NEW KIND OF LUXURY trips to industry shows in Shang- hai and Hong Kong, but it seemed Refi ned style, breathtaking views, fusion-forward food overwhelming. “We didn’t even and inventive craft cocktails. What’s your new luxury? know what to ask,” Charlick said. This time, they hired someone www.crowneplaza.com | 313-965-0200 else to do the work. 2 Washington Blvd., Detroit, MI 48226 Through a long chain of connec- tions — a friend of a friend of a sis- ter — they connected with an American man living in Mexico who ran a panty factory there. 20140714-NEWS--0027-NAT-CCI-CD_-- 7/11/2014 9:50 AM Page 1

July 14, 2014 CRAIN’S DETROIT BUSINESS Page 27 Second Stage Industry contact kept Mexican expansion from going south

Mark D’Andreta was at dinner when he saw his path into the Mex- TD INDUSTRIAL COVERINGS INC. ican market. Target country: Mexico For years he’d been trying to break in, but every attempt had Breakthrough moment: Sitting at dinner in downtown Detroit with a failed despite all of his automotive Mexican distributor who could pave customers making their way south the way forward. of the border. Lesson: Instead of relying on D’Andreta’s Sterling Heights- clients to make connections, look based company, TD Industrial Cover- to industry contacts. ings Inc., makes fabric protective coverings so that paint shop robots nent sales and service office in don’t get covered in the overspray. Mexico. The company also has As more of the automotive compa- picked up bits of work in Spain, nies opened in Mexico starting in England, Turkey and Brazil. the 1990s after passage of the North That doesn’t mean the experi- American Free Trade Agreement, ence has been without the occa- D’Andreta assumed it would be a sional challenge. For example, lucrative market. D’Andreta had to incorporate so- “I thought I better do something cial niceties, such as prefacing down there. There’s a need and if I business emails with inquiries don’t do it, someone else is going about family life and the weather. to,” said D’Andreta, president of “I’d rather just send four bullet TD Industrial Coverings. points on what I need. You just He’d tag along on trips with au- can’t do it that way,” he said. tomaker clients, but the business “Some are more tolerant of it now opportunities fizzled out as border GLENN TRIEST — ‘OK, you’re American. You’re An industry contact helped Mark D’Andreta pick the brain of a company that distributes products in Mexico, where he wanted TD issues and communication prob- like this.’ ” Industrial Coverings to be. “I needed someone who could help me communicate and follow up on customers,” D’Andreta said. lems reared their heads. The au- tomakers also had purchasing chains for Mexico that differed from the ones for the plants back home. SBA PREFERRED LENDER | TERM LOANS | REAL ESTATE LOANS | LINES OF CREDIT “Even though I was still dealing with GM or Ford or Magna, once I was down there, I’d still have all these hurdles,” D’Andreta said. “It was almost naive. You don’t know that stuff until you start trying to do business down there.” Sometimes plant managers in Mexico would call him, desperate for covers and asking him to send $35,000 in fraudulent some down. But robotic coverings aren’t socks. Modifications are al- most always needed to suit the tight, highly engineered configura- checks prevented in tions. D’Andreta soon would be on a plane to Mexico, spending a lot of time on a distant account that may one day...by one customer. or may not go somewhere. Finally, an industry contact of- fered to set up a meeting with a Your hometown company that distributes Ameri- can industrial products to facto- ries in Mexico. It sounded like the makings of a advantage. concrete plan to D’Andreta, so he agreed to meet for dinner while the man was in Detroit on business. “I needed someone who could help me communicate and follow Being local means we’re able to help keep a closer eye on your small business. It means up on customers, a consistent feed- pro]iKing banking tools like 7ositi]e 7ay which uses a secure ]eriÄcation process to back loop on the customer’s need protect your accounts against ACH and check fraud. Trust us, that’s a big advantage for and whether I’m meeting the small business. need,” D’Andreta said. He was apprehensive. But his Contact Tom Snapke at 586-447-4849 to learn more. new connection brought clarity to www.thefsb.com/cashmanagement | 866-372-1275 the situation, explaining how shipping and payments get han- dled in Mexico and assuaging D’Andreta’s concerns about com- munications. More than a decade later, TDIC now does business in eight plants and is looking to set up a perma- 20140714-NEWS--0028-NAT-CCI-CD_-- 7/11/2014 9:51 AM Page 1

Page 28 CRAIN’S DETROIT BUSINESS July 14, 2014 Second Stage Chocolate makers’ questions lead to farmer in Ecuador who knows beans

A husband-wife team from the United States is in Ecuador, dri- ving through mountain villages in search of a rare variety of cacao beans, the primary ingredient in their new product. Their plan? Stop people and ask who might supply the beans. It’s not the most sophisticated plan, but it is effective. The pair is pointed to a farmer who can pro- vide them with what they’re seek- ing. It’s a story of international busi- ness that sounds too picture-per- fect to be true. Yet that’s the mo- ment when things took a turn for Jose Meza and Barbara Wilson, the owners of Dexter-based Mindo Chocolate Makers LLC. It’s somewhat misleading to say the business is based in Dexter. There are actually two businesses. There’s Mindo, a craft chocolate maker that operates out of a house in the village of Dexter. And then there’s the restaurant, El Quetzal de Mindo, in the village of Mindo, Ecuador, where the owners spend the vast majority of their time. The couple moved to Mindo in 2007 to retire, leaving behind the Ann Arbor auto repair shop, Ar- borMotion, that they ran for 30 years. They chose Ecuador because Meza is native to that country, though he hadn’t been home since coming to the U.S. some 40 years 1HHGDQ,QYHVWPHQW earlier. Like all good entrepreneurs, they were soon running another 5HDO(VWDWH/RDQ" business. And like many good businesses, it began in response to LEISA THOMPSON a need. Wilson and Meza needed a Barbara Wilson and Jose Meza couldn’t just plug a search term into Google to decent Internet connection, but in find cacao in Ecuador. Instead, they relied on old-fashioned sleuthing to find just the right farmer with just the right bean for their Mindo chocolate. Mindo that meant $700 a month. So they opened an Internet cafe to thought we could just go buy spread out the cost. beans, but we couldn’t find a good That led to serving coffee and MINDO CHOCOLATE MAKERS LLC source,” Wilson said. brownies, the latter proving espe- Target country: Ecuador Mindo is experimenting with cially popular. But even though ca- Break-through moment: A rural shipping the beans from Equador to cao is grown in that neck of the villager in Ecuador pointed them to Detroit. But a trial last summer did- woods, high-quality chocolate that a farmer who could supply a rare n’t go well. A ship left July 8 with Wilson needed for her brownies cacao bean for their chocolates. was not readily available. Lesson: It never hurts to ask. 8,000 pounds of beans Mindo expect- ed to get by the end of the month. In- Soon she was carting loads of stead the beans arrived Aug. 20, European chocolate purchased Meanwhile, people back in from Whole Foods Market in Ann Michigan wanted more of the said Zack Crawford, general man- Arbor back to Mindo — a lot of small-batch chocolate Wilson was ager at the Dexter location. work just to make brownies in bringing from Mindo. In 2009, Min- The beans first sat at a port in Ecuador. do Chocolate Makers in Dexter New Jersey as customs sifted &DOOXV through them. Then it sat in De- So they started looking for local opened to serve the market here. troit as U.S. Food and Drug Administra- /RDQDPRXQWVDQGDERYH farmers to supply raw cacao, but Finding that first farmer was tion agents sent out samples for test- it’s “not like you can Google it,” just one step among many toward $GGLWLRQDODYDLODEOHORDQV ing. Wilson said. “We started driving securing a reliable supply. The to areas where people said they “The FDA said it was cracking ‡6%$86'$/RDQV beans now are bought from a coop- have cacao. We’d ask people in down on shipments coming from erative because business outgrew ‡2ZQHU2FFXSLHG5HDO(VWDWH town, ‘Where can we buy cacao?’ ” that region — not news we wanted Pedro’s capacity. ‡/LQHVRI&UHGLW They pointed them to Pedro and to hear,” Crawford said. But it took some effort to com- ‡$FFRXQWV5HFHLYDEOH his Mindo farm, where cacao Perhaps it shouldn’t have been a municate quality standards. For ‡(TXLSPHQW beans grow in the shade, mixed in surprise considering the shipment example, the co-op liked to dry ‡%DQN:RUNRXWV with other crops, such as citrus was coming from a “red-flag area,” fruits and macadamia trees. beans on the ground and let dogs Crawford said. It hardly would be The talked to Pedro about what laze on the piles. surprising if someone tried to they needed: the Nacional variety Meza and Wilson trained the mask a shipment of cocaine in a of bean, grown organically. He im- farmers to ferment and dry the container of cacao beans, especial- mediately agreed. beans, and helped them build spe- ly a container ordered by an un- “He was very excited,” Wilson cial drying beds to keep beans off known new small business. said. “We took him a chocolate bar the ground. They also started “My understanding is it’s pretty  made with his beans and he was so paying higher rates, Wilson said, common, especially when sending ZZZHFOLSVHFDSLWDOJURXSFRP excited, he yelled and threw his in exchange for the improved your first container,” Crawford 2UFKDUG/DNH5G6\OYDQ/DNH0, hands up in the air. He couldn’t be- quality. said. “We bear some blame, but ³6LQFH´ lieve something so delicious could “We’re still struggling with that our broker could have informed us be made with his cacao beans.” whole thing,” Wilson said. “We a little more.” 20140714-NEWS--0029-NAT-CCI-CD_-- 7/11/20149:52AMPage1 feeling increasinglyunsatisfied was fine,butby2012Foster growth. Foster knewheneededtoadapt. health careregimenssince1996, co Corp. their own.Foster’scompany, gram —andgainalittleinsightof ees withtheperkofawellnesspro- when theywanttoprovideemploy- uy1,21 C July 14,2014 help –but don’t doitlightly Altering can model business SPECIAL TOCRAIN’SDETROITBUSINESS companies by growing problem-solving A lookat STRATEGIES STAGE During therecessionplateau Problem: Businesses callScottFoster B Y G , hascreatedpreventive ARY A stubbornflatspotin 2 A NGLEBRANDT changing, and world hasbeen health care and costs. care benefits overall health alyze their the toolstoan- clients with providing But the Well- thing missing,”Fostersaid. out, butweknewtherewassome- when theeconomyturnedinside stay relevantinthemarketplace. was strugglingtoexpandand with hiscompany’strajectory.He The industryhadbecomeover- “We wereabletoholdourown RAIN Second Stage ’ S D ETROIT COURTESY OFWELLCOCORP. analytics. consulting and Corp. tostress retooled Wellco Scott Foster wellness front, increasing onthe With competition B USINESS O’Keefe Description: Location: W Revenue: Employees: President: and healthcareprogramservices to surviveandthrive. in withtraditionalhealthcare. passed, bundlingwellnessservices Then theAffordableCareAct word status,fuelingcompetition. heated as“wellness”tookonbuzz- and howaremoreirrelevant.” you canunderstandthat,the what buy theirservice,”O’Keefesaid. “If why theyexistandcustomers wise totargetthenewdemand. fests itselfinanewway,itmightbe original model.Ifthatneedmani- was actuallybeingservedunderthe trick istostayontopofwhatneed dational businessshiftlightly. suddenly andunexpectedly. retool forsomethingthatchanges also bringschallenges.Youmight ly isimperativeinthisindustry,but change yourbusinessmodelquick- said. There’s alotofuncertainty,”Foster beyond sixmonthsor12months. of thewellnessbusiness?Again. come alongtochangethedynamics ment tohealthcarelawsmight knows whenaregulatoryadjust- of healthcareiseverchanging.Who year, Fostersaid. track toreach$1.8millionthis $1.4 millionlastyearandison went from$1.1millionin2012to percent ofthecountry.Revenue graphical footprintnowreaches80 percent since2012,anditsgeo- company increasedclientsby19 ness programs. cused oncreatingcorporatewell- more readilyscalablethanonefo- ware andconsultingcompanyis pand withoutmuchcost.Asoft- and allowedthecompanytoex- former competitorsintoclients able forpurchase,whichturned — insteadofstartingthem. wellness andhealthcareprograms services tohelpcompaniesfix Foster realizedhecouldsellthese sure theeffectsoftheseprograms. and analyticstoolstohelpmea- grams, Wellcocreatedsoftware around consultingandanalytics. ELLCO Solution: Foster knewheneededtoadapt “Most companiesdon’tdefine “The companytookaboldstepin Expert opinion: So beingnimbleandableto “Nobody canpredicthealthcare Risks andconsiderations: As aresult,theRoyalOak-based Wellco madeitssoftwareavail- As partofbuildingwellnesspro- C Royal Oak $1.4 millionin2013 Scott Foster ORP 12 Corporate wellness Refocus itsbusiness . Don’t makeafoun- Bloomfield Hills. sulting LLC Associates Con- CEO of Patrick O’Keefe, that,” said venture todo nies wouldn’t A lotofcompa- business model. changing its Part ofthe Page 29 The world O’Keefe & in

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Page 30 CRAIN’S DETROIT BUSINESS July 14, 2014

PEOPLE BUSINESS DIARY

FINANCE tion Center at Wayne State Universi- ACQUISITIONS & MERGERS ty, Detroit, from independent health Edward Barrett care consultant, Sterling Heights. IN THE SPOTLIGHT Visteon Corp., a Van Buren Township- to vice presi- based automotive supplier, completed dent, credit Christine Logan Buechner has bought the Farmington Hills negotiation the acquisition of the automotive elec- manager, Huron LAW services firm started by her father in 1996 and is succeeding him as its tronics business of Johnson Controls Valley State president and CEO. Inc., Milwaukee. The Plymouth-based Bank, Milford, James Logan will remain with James E. Logan & unit of Johnson Controls provides au- from assistant Associates in a consulting role and assist in client tomakers driver information, info- vice president, tainment, connectivity and body elec- support. He also will serve on the company’s tronics. Website: visteon.com. commercial advisory board. banking officer. The company specializes in structured settlements, William Diehl to CONTRACTS which are annuity-like payments made over time to advisory manag- Palace Sports & Entertainment, compensate injury victims. They are made in lieu of Barrett ing director, Auburn Hills, and Lipari Foods Inc., transactions and lump-sum payments, especially in instances where Warren, signed an agreement offering restructuring practice, KPMG LLP, victims require long-term care or support. “Lipari Perfect Picnic Pack” food and Detroit, from CEO, BBK Ltd., South- The company says it is now the only woman-owned beverage offerings at DTE Energy Mu- field. Also, Guy Morgan to advisory Tyrrell Bruder and -operated structured settlement firm in the sic Theatre, Clarkston, and Meadow Buechner managing director, industrial manu- U.S. Brook Music Festival, Rochester Hills, Jennifer Tyrrell to financial con- as well as signs at the two venues and facturing-automotive practice, from Buechner had been executive vice president of Logan & Associates and advisory managing director, BBK troller, Strobl & Sharp PC, Bloom- The Palace of Auburn Hills; in-store re- its sister company, American Settlement Centers Inc., also in Farmington tail display promotions; and a Ltd.; Jennifer Heckman to managing field Hills, from manager, financial accounting and reporting, Guardian Hills. She has been a certified structured settlement consultant for the portable “Lipari Grab & Go” conces- director, federal tax practice, from Industries Corp., Auburn Hills. past 25 years and has served on the board of the National Structured sion stand inside The Palace. Web- vice president, global tax and trea- Settlements Trade Association, including as a former chair of its PAC sites: palacenet.com, liparifoods.com. sury, Dura Automotive Systems Richard Bruder to shareholder, Kemp, Klein, Humphrey, Endelman & board of directors. LLC, Auburn Hills; and Ajai Vasude- EXPANSIONS van to advisory managing director, May PC, Troy, from of counsel, Dean Buechner, 45, earned a bachelor’s degree in advertising from Michigan industrial manufacturing-automo- & Fulkerson PC, Troy. State University. First Independence Bank, Detroit, tive practice, from senior manager, opened a branch at 38880 Garfield Road, profit consultant, WorldLink Com- automotive and industrial products, NONPROFITS Clinton Township. Telephone: (586) 329- munications LLC, Redford Town- Deloitte Consulting LLP, Detroit. PEOPLE GUIDELINES 7200. Website: firstindependence.com. Karen Roback to ship. vice president of Announcements are limited to NAME CHANGES GOVERNMENT early childhood SERVICES management positions. Email them Frederick Zorn policy and pro- to [email protected] Art Van World of Floors, part of Art Van grams, Starfish Dennis Green to to city adminis- or mail notices to Departments, Furniture Inc., Warren, changed its Family Services name to Art Van Flooring. Website: trator, city of Oakland County Crain’s Detroit Business, 1155 Inc., Inkster, sales manager, artvan.com. Southfield, from from senior di- Gratiot Ave., Detroit, MI 48207- acting city ad- InXpress, West 2997. Releases must contain the rector of early Bloomfield NEW PRODUCTS ministrator. learning innova- person’s name, new title, company, Township, from tion, Early city in which the person will work, Arotech Corp., Ann Arbor, a provider HEALTH CARE Childhood In- marketing and former title, former company (if not of defense and security products for social media the military, law enforcement and Thomas Reed to Roback vestment Corp., promoted from within) and former Lansing. manager, city in which the person worked. homeland security markets, unveiled associate pro- to the U.S. Department of Defense the gram director, Bernadette Doré to deputy executive Healthmaster Photos are welcome, but we cannot Holdings LLC, guarantee they will be used. Man Portable Hybrid Power Manage- Michigan Area director of strategic advancement, ment System, a hybrid system de- Walled Lake. Zorn Health Educa- City Year Detroit, Detroit, from non- Green signed to extend the life of generators by reducing run time by up to 70 per- cent, reducing fuel consumption and the maintenance burden. While not Ferdinand Samson, VP, Equipment Finance of dependent on solar, the system is able Level One Bank and client Robert Brisley, to collect and store up to 3 kilowatts of President of Polymer Process Development solar energy. Website: arotech.com. SimuQuest Inc., Ann Arbor, a provider of software tools for embed- ded systems development, announced the release of data management soft- ware for vehicle controls now at Ford Motor Co., providing a new level of au- tomation in the design and develop- ment of model-based systems. Web- site: simuquest.com. Ferdinand “Ferd” Samson, VP, Equipment Finance NEW SERVICES of Level One Bank and client Rob Brisley, President of Polymer Process Development Gale Group Inc., Farmington Hills, part of Cengage Learning Inc. and a publisher of research and reference resources, added millions of pages of content to its Gale Digital Collections Equipment Financing program with the launch of 10 re- sources, including new periodical col- lections and the next installments of Smithsonian Collections Online, Tailored for you, the entrepreneur. Nineteenth Century Collections On- line and The Chatham House Online Finance up to 100% of equipment, plus soft costs. Archive. Website: gale.cengage.com. STARTUPS Flexible terms. Local decision making. Great Lakes Group Advisors Inc., an in- surance advisory firm focused on life, disability and absence programs for Call us large employers, opened at 1442 Brush St., Detroit. Telephone: (313) 293-5460. Website: greatlakesgroupadvisors.com. Taqo Detroit, Mexican cuisine, opened Contact Greg Wernette at 22 W. Adams St., Detroit. Telephone: Entrepreneur and Chief Lending Officer, 248-737-0300 (313) 962-7701. Website: taqodetroit.com. DIARY GUIDELINES Email news releases for Business Diary to cdbdepartments@ crain.com or mail to Departments, Crain’s Detroit Business, 1155 Gratiot Ave., Detroit, MI 48207- 2997. Use any Business Diary item as a model for your release, and look for the appropriate category. Without complete information, your 32991 Hamilton Court ∫ Farmington Hills, MI 48334 ∫ levelonebank.com item will not run. Photos are Commercial Banking ∫ Retail Banking ∫ Mortgage Services welcome, but we cannot guarantee All financing subject to credit approval. they will be used. 20140714-NEWS--0031-NAT-CCI-CD_-- 7/11/2014 9:54 AM Page 1

July 14, 2014 CRAIN’S DETROIT BUSINESS Page 31

CALENDAR

TUESDAY 44th Annual ICSC Michigan Idea Ex- HONORING ENTREPRENEURS change & Alliance Program. 8 a.m.-3:45 JULY 15 p.m. July 24. International Council of Join Crain’s Detroit Business at its Shopping Centers. A gathering of more Inaugural Latina Summit: Women in 2014 Salute to Entrepreneurs, than 500 retailers, real estate develop- Power Leading Change. 3-6 p.m. Michi- 7:30-10 a.m. July 24 at The Henry, ers, public officials and professional gan Hispanic Chamber of Commerce. Autograph Collection, Dearborn. service providers, including environ- Latinas from varying generations and Every year, Crain’s recognizes mental consultants, media members, professional backgrounds will present attorneys, financial institutions and their experiences as decision-makers entrepreneurs for their innovation, general contractors. With keynote in the business world. Detroit Marriott problem-solving abilities or sheer speakers Ben Schall, COO, Rouse Prop- Renaissance Center, Detroit. $30 relentlessness. In addition to the erties Inc., owner of 34 malls in 21 MHCC members, $40 nonmembers. awards ceremony, hear firsthand states, and Michelle Shannon, vice pres- LENDING Contact: Nilda Thomas, (248) 792-2763, accounts from business executives ident, marketing and communications, ext. 103; email: [email protected]; who find ways to compete against Center City District, Philadelphia, an or- to growing businesses website: mhcc.org. larger rivals. Featuring Eoin ganization being used as a benchmark Commerford, CEO, Moosejaw for the Downtown Detroit Partnership. remains our top priority. Mountaineering; Marc Gardner, Suburban Collection Showcase, Novi. Hitachi Business Finance WEDNESDAY founder, North American Bancard $95-$455. Contact: Doug Brown, (810) Hennessey Capital is now JULY 16 LLC and PayAnywhere LLC; and 599-8131; email: [email protected]; Lydia Gutierrez, president and CEO, website: icsc.org. Offering a world of ÁH[LEOH financing How Cities and Metros Are Fixing Our Hacienda Mexican Foods. RSWLRQV for companies that want to grow. Broken Politics and Fragile Economy. Roundtable discussions will Annual Automotive Roundtable: Man- 11:30 a.m.-1:30 p.m. Detroit Economic provide advice from the experts aging Growth in Innovation. 11 a.m.- Club. Discussion on how communities 248.658.1100 ZZZ.+LWDFKL%XVLQHVV)LQDQFH.FRP featured in the Crain’s Small 1:30 p.m. July 24. Marketing & Sales are addressing environmental, politi- Executives of Detroit. With panelists cal, economic and fiscal problems. Business Strategies webinar series. Doug Grimm, chairman, president and With Bruce Katz, Brookings Metropol- CEO, Grede Holdings LLC; Dan Sceli, itan Policy Program, The Brookings Tickets are $50 or $45 if CEO, Peterson Spring; and moderator Institution, and co-author, The Metro- purchased in groups of 10 or David Versical, director, editorial op- politan Revolution: How Cities and more. Preregistration closes at erations, Automotive News, a Crain Metros Are Fixing Our Broken Politics 5 p.m. July 18. If available, walk-in Communications Inc. publication. and Fragile Economy; George registration will be $65 per person. Michigan State University Manage- Jackson, outgoing president and CEO, For ticket information, call Kacey ment Education Center, Troy. $45 Detroit Economic Growth Corp.; Susan Anderson at (313) 446-0300, MSED members, $60 nonmembers. Mosey, president, Midtown Detroit Cancellations accepted through July Inc.; presiding officer Cynthia Pasky, email her at [email protected] 18. Contact: Cheryl Dry, (248) 643-6590; founder, president and CEO, Strategic or visit crainsdetroit.com/events. email: meetings@meeting-coordina outsourced risk management Staffing Solutions; and moderator Join the conversation with tors.com; website: msedetroit.org. John Gallagher, business reporter, De- #cdbsalute. troit Free Press. Detroit Marriott at Forum: Democratic Candidates for the Renaissance Center. $45 DEC can help metro Detroit and Michigan, Wayne County Executive. 7-8:30 p.m. members, $55 guests of members, $75 using Chinese investment as an exam- July 24. Livonia Chamber of Com- nonmembers. 11:30 a.m. speaker re- ple of the opportunities and challenges merce. With state Rep. Phil Cavanagh, ception open only to board, life and businesses face as they look at the in- former Wayne County Sheriff Warren gold members. Contact: Detroit Eco- vestment landscape and evaluate their Evans, Wayne County Executive nomic Club, (313) 963-8547; email: competitiveness. Ford Field. $45 DEC Robert Ficano, Wayne County Com- [email protected]; website: econ members, $55 guests of members, missioner Kevin McNamara and West- club.org. $75 nonmembers. 11:30 a.m. speaker re- land Mayor William Wild. Moderated ception open only to board, life and by Livonia chamber President Dan gold members. Contact: Detroit West. Schoolcraft College VisTaTech UPCOMING EVENTS Economic Club, (313) 963-8547; Center, Livonia. Free. Contact: (734) Farbman C-Series. 9-11 a.m. July 21. email: [email protected]; website: 427-2122. Register at livonia.org. Farbman Group. With David Farb- econclub.org. WHAT PATH ARE YOU ON? man, principal, NAI Farbman, founder Business Builder Series. 7:30-9:30 a.m. and CEO of OutdoorHub, founder and Detroit Green Map Launch. 6:30-8:30 July 29. Dearborn Area Chamber of chairman of Carbon Media Group LLC, Commerce. With Joe Hinrichs, presi- and CEO of NucoHealth, talking about p.m. July 23. Social event open to the public, providing the opportunity to dent, the Americas, Ford Motor Co., on his book The Hunt: Target, Track and learn about the — a the company’s commitment to the Attain Your Goals. Bingham Office Detroit Green Map collaboration between the Detroit Dearborn and Detroit areas and its fu- Center, Bingham Farms. Free. Con- Green Skills Alliance and the U.S. ture initiatives. The Dearborn Inn, tact: Andrea Trapani, (248) 258-2333; Green Building Council’s Detroit Re- Dearborn. $30 advance registration un- email: [email protected]; gional Chapter Emerging Profession- til July 28, $35 after that date. Contact: Website: farbman.com. als Group — and how it’s working to Ron Hinrichs, (313) 584-6100; email: build Detroit’s green economy. [email protected]; A Plan for Foreign Investment in Detroit D:hive, Detroit. Free. Confirm invita- website: dearbornareachamber.org. and Michigan. 11:30 a.m.-1:30 p.m. July tion request via Facebook, 21. Detroit Economic Club. With Gov. facebook.com/events/1514804778738511. Automation Workz. 2-5 p.m. Sept. 6. Rick Snyder and Henry Paulson Jr., Contact: Alexandro Bazan, (219) 688- Uplift Inc. Career exploration parent chairman, The Paulson Institute, dis- 5296; email: [email protected]; web- workshop and employee recruiting cussing how foreign direct investment site: detroitgreenmap.com. event designed to expose high school students and their parents to an auto- mated factory and advanced manufac- turing jobs that require training be- yond high school but no bachelor’s degree. Families will earn prizes as they participate in invention/technol- ogy/robotic exhibits. Comau Innova- tion Campus, Southfield. Free. Con- IS YOUR TEMPORARY tact: (877) 429-2370; website: upliftinc.org/automation_workz.aspx. LABOR PROVIDER CALENDAR GUIDELINES Minimize Exposure. Reduce Expense. If you want to ensure listing online The Sterling Insurance Risk-Path-Process® is a proven and be considered for print publication in Crain’s Detroit multi-channel, enterprise level risk management strategy. 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Page 32 CRAIN’S DETROIT BUSINESS July 14, 2014 Dealership body shops on a comeback? Industry trade group chief predicts growth

BY ARLENA SAWYERS that had body shops in 2006, before CRAIN NEWS SERVICE BODY SHOPS ON RISE the recession. Butch Hollister, a 20 group mod- The share of U.S. dealerships with In 2010, as the economic down- erator with NADA, describes deal- turn squeezed the auto industry, body shops rose slightly last year but still trailed the share in 2006. ership body shop growth as static, Traverse City- but the shops are profitable for based dealer Percent of dealerships with body shops: dealers who have them. Otto Belovich Collision repair generates labor wanted to im- 2006 41% 2012 34% revenue and adds to dealers’ parts prove his com- sales, he said. 2013 36% pany’s cash But Hollister agrees that “it is flow. Source: National Automobile Dealers not an easy business.” One chal- Association So he doubled lenge that has nagged dealers for the size of the years is direct repair contracts. body shop that Dealers also are building larger Under direct repair contracts, serves his two Belovich shops that accommodate multiple dealers enter agreements with in- dealerships to stores, Schiller said. surance companies on the parts to 10,000 square feet, doubled his And there is a shortage of shop repair damaged vehicles, prices technician count to eight, and technicians, especially those with for repairs and how quickly vehi- added a second paint booth. the know-how to repair newer ve- cles will be repaired, Hollister Belovich’s efforts paid off. His hicles crafted with different met- said. In exchange, the insurer rec- body shop’s annual revenue rose als and advanced plastics. ommends the shops to their cus- to $2.8 million from $1.8 million be- Finally, some dealers dislike tomers who file insurance claims. fore the expansion. And today terms imposed by auto insurers, Some dealers don’t like direct business is good, he said. who often pick where vehicles are repair contracts because they give “We could double it again,” repaired. insurance companies power to dic- Belovich said of the shop. “If you But that hasn’t stopped some tate how much they will pay for re- don’t want to grow, you’ve got to dealers, such as Belovich, who pairs and what parts must be used. go away.” want to be one-stop sources for all Belovich said at one time he had But Belovich is an exception. their customers’ automotive needs. numerous contracts with insur- The share of dealerships operating Dan Risley, president of the Col- ance companies but has ended body shops has shrunk since 2006, leyville, Texas-based Automotive most of them. according to data published by the Service Association, predicts that Problems arise when customers, McLean, Va.-based National Auto- the number of dealership body especially those with late-model mobile Dealers Association. shops will rise in the coming vehicles, want their vehicles re- Body shops are expensive. Real years. The association is a trade paired with new parts from the estate, a building and equipment group that represents automotive auto companies — but the insur- can easily cost about $2 million, service and repair professionals. ance company pays for aftermar- said Lloyd Schiller, a Florida- As automakers increasingly in- ket parts, Belovich says. He also based consultant who specializes corporate newfangled materials — has had problems with the quality in fixed operations. such as carbon-fiber reinforced of some aftermarket parts. plastic, aluminum and steel of vary- “It’s about keeping the customer ing strengths — into their vehicles, happy,” says Belovich. “A happy repairing the vehicles requires so- customer comes back and buys an- phisticated and expensive training, other car.” equipment and tooling, Risley said. Rick Case, CEO of Rick Case Au- Manufacturers will make those tomotive Group in Fort Lauderdale, things available to their dealers Fla., said his body shop on the west first, he predicts. side of the Fort Lauderdale area “One vehicle could have up to 13 handles all makes of vehicles. He different types of substrates and has direct repair contracts with could require different types of re- several insurance companies. pair, depending on which type of His technicians are so busy that substrate you’re working on,” he the shop operates two eight-hour said. shifts five days a week and some- According to NADA Data 2014, times adds a third shift to keep up. consumer the annual financial profile of Said Case: “We want to be a full- franchised new car dealership, 36 service dealer to our customers, percent operated a body shop in and the collision business is prof- advice: 2013, up from 34 percent in 2012. itable business.” But that’s below the 41 percent From Automotive News pick the right health plan NOMINATIONS SOUGHT FOR NONPROFIT CONTEST This year’s Crain’s Best-Managed Nonprofit Contest is focused on good for you management practices of nonprofits. Applicants are asked to give examples of how they deploy their mission and resources, among other Aug. 4 • Noon-1 p.m. information. Applications are due Aug. 25. Finalists will be interviewed in person by judges the morning of Nov. • Strategies to get information on plans 10. Applicants for the award must be a 501(c)(3) with • Resources that can be used to headquarters in Wayne, Washtenaw, Oakland, Macomb or Livingston make decisions counties. Applications must include an entry form, a copy of the organization’s code of ethics, a copy of the most recent audited financial • What to watch out for statement and a copy of the most recent IRS 990 form. Previous first-place winners are not eligible; neither are hospitals, HMOs, medical clinics, business and professional organizations, schools, FREE WEBINAR - Register at crainsdetroit.com/webinars churches or foundations. The winners will be profiled in the Dec. 1 issue, receive a special “best- Sponsored by: managed” logo from Crain’s for use in promotional material and will be recognized at the Crain’s Newsmaker of the Year lunch early next year. In Partnership with:

™ For an application form, please email YahNica Crawford at [email protected] or visit www.crainsdetroit.com/nonprofitcontest. For information about the contest itself, email Executive Editor Cindy Goodaker at [email protected] or call (313) 446-0460. 20140714-NEWS--0033-NAT-CCI-CD_-- 7/11/2014 6:11 PM Page 1

July 14, 2014 CRAIN’S DETROIT BUSINESS Page 33 Homecoming: Event invites Detroit ‘expats’ back for comeback ■ From Page 1 ners LLC, a real estate investment Fortune magazine, brought the sity of Detroit Mercy President An- and development company led by idea to Crain’s. toine Garibaldi. Area schools and another ex-Detroiter, Chairman Hayes had worked in Detroit Ever since I’ve been back, universities have been tapping and CEO Quintin Primo III. from 1967 to 1977 for Sports Illus- “ their alumni lists and encouraging Owens grew up in northwest De- trated before continuing his pub- I’ve been endlessly impressed by their graduates to come home. troit, attended Catholic schools lishing career in New York City. But their energy in reaching and UM. He eventually landed a “I’m an expat,” said Hayes, who the opportunities for investment their alumni was eclipsed by the en- job as vice president, global head moved back to the Detroit area last thusiasm of the “expats” them- of brand strategy, at eBay in a ca- year. and engagement. selves. reer that has taken him around the “Ever since I’ve been back, I’ve ” “I’ve had a chance to travel all world from his West Coast base. been endlessly impressed by the Jim Hayes over the world during the past few Some expats left for other states; opportunities for investment and years, and no matter where I am or others just left for another part of engagement. We’re going to daz- who I am with, I turn the conversa- the metro area. zle these folks who haven’t been major business investors. have attended meetings and of- tion toward Detroit,” said Owens, Martin is known for his role as here in a while. They’ll be Our invited guests are successful fered input on the homecoming. who joined the effort as a nonresi- UM athletic director, being on the stunned to see how dramatically people, from billionaires Stephen Other host committee members dent member of the host committee. board of the U.S. Olympic Committee Detroit is changing for the bet- Ross and Eli Broad to tech entre- include Tonya Allen, CEO of the “What’s amazing is how much or as a real estate investor. Maybe ter.” preneurs, venture capitalists, pri- Skillman Foundation; Mary Barra, people everywhere care about what’s happening in the city. The not as a Detroiter. Hayes brought the idea of the vate equity investors, artists, jour- CEO of General Motors Co.; Edsel conversations have been great, but He grew up in Detroit, attended initiative to Crain’s after meeting nalists and entertainers. Ford II, board member, Ford Motor it’s clear to me that I needed to Edgar Guest Elementary School with nonprofit and business lead- We hope the experience will Co.; Dan Gilbert, founder and move from talk to action.” and graduated from Cooley High ers about ways he could help sup- help them shape their own ideas of chairman of Quicken Loans Inc. and Butler said she decided to return School before heading to college port Detroit’s revival. Hayes said how they can best help the city and Rock Ventures LLC; Christopher Il- for the homecoming because she and building a community bank in one conversation — with Kresge support momentum already hap- itch, president and CEO of Ilitch Ann Arbor. Foundation saw it as an “opportunity to work senior program direc- pening. Holdings Inc.; Jerry Norcia, presi- Butler, Primo and Martin are tor Laura Trudeau — prompted a with expats to begin to reverse the Martin, whose FirstMartin Corp. dent and COO of DTE Energy Co.; among more than 70 successful for- discussion of how many success- brain drain that began several is based in Ann Arbor, was among Cindy Pasky, CEO of Strategic mer Detroiters who have accepted ful, influential people around the decades ago.” the first to volunteer for the host Staffing Solutions; Roger Penske, the invitation to attend The De- country had once called Detroit “I was amazed to see the list of committee. chairman of Penske Corp.; and Rip troit Homecoming. We’re hoping home. successful business leaders that Rapson, CEO of the Kresge Foun- final registration tops 150. From the beginning, we hoped “It’s time I returned to Detroit have Detroit roots,” she said. “Just dation. “It’s a tremendous opportunity to re-engage and reconnect “ex- and both invested in and support- think where the city would be if we for those of us that have been away pats” to Detroit through a 48-hour ed the city’s leadership,” he told Major sponsors include the Gen- had all stayed put and started our for some time, to come back and immersion. And it has been a com- me. “With all the energy from so eral Motors Foundation, Meridian businesses in Detroit!” experience the vibrancy and mo- munity effort. many folks, strong leadership at Health/the Cotton family, A. Alfred More information can be found mentum in Detroit,” said Butler. A group of nearly 50 volunteers both the state and local level, and Taubman, DTE Energy Foundation, at detroithomecoming.com or by “Many ‘expats’ are quite unaware from area universities, nonprofits, the fiscal re-engineering now in Ford Motor Co., Quicken Loans and emailing [email protected]. of all the good things taking place public agencies and companies process, the future is very bright.” the Michigan State Housing Develop- to reinvent Detroit to become a has created an agenda designed to Crain’s Detroit Business recruit- ment Authority. Mary Kramer is publisher of world-class, 21st century metropo- introduce the ex-Detroiters to peo- ed public and private partners, par- As outreach began, planners Crain's Detroit Business. Catch her lis.” ple making a difference on the ticularly the Downtown Detroit Part- found a high degree of enthusiasm take on business news at 6:10 a.m. Monday’s briefing is the official ground in the city. Duggan, for ex- nership and Detroit Economic Growth among university leaders, includ- Mondays on the Paul W. Smith show public announcement for the ini- ample, or Gov. Rick Snyder, as Corp., to help shape the concept. ing Wayne State University President on WJR AM 760 and in her blog at tiative, which began last fall when well as social entrepreneurs, non- Key staff members from both M. Roy Wilson, former UM Presi- www.crainsdetroit.com/kramer. Jim Hayes, a retired publisher of profit grassroots leaders as well as Duggan’s and Snyder’s offices dent Mary Sue Coleman and Univer- E-mail her at [email protected]. MARKET PLACE JOB FRONT REAL ESTATE

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Page 34 CRAIN’S DETROIT BUSINESS July 14, 2014 Exploration: Drillers find SE Mich. well-suited for exploration ■ From Page 1 Department of Environmental Quality. lier this month for Scio Township, drilling a few miles from the mits for 2014 as a whole, while the ecutives and state officials said the The same five-county region ac- despite opposition from nearby Rochester Hills property, at this state as a whole could see its slow- region tends to be a crapshoot counted for 29 total permits in all residents and a letter in May from point. Granted, if those drills are est year of new drilling since 1931. compared with the historical yield of 2013, out of 205 permits issued three state legislators asking DEQ successful we may come back to do Jordan and West Bay are also of other areas. But regulations that statewide. to reject it. more. The jury’s still out on Oak- collaborating on a site with a new require explorers to lease incre- Pumps have been more heavily It also gained another permit in land County in terms of what’s go- permit in Waterford Township, ments of 40 acres can mean negoti- distributed out-state for decades; June for a site in western Shelby ing on (in terms of production and have three permits between ating with dozens of landowners the same five metro Detroit coun- Township, not long after a lease yield),” said Ben Brower, vice them for sites in White Lake Town- for each new well in populated ar- ties accounted for just 33 permits deal in nearby Rochester Hills president at Jordan Development. ship, including two at Indian eas, and negotiating for one large combined, out of 3,123 statewide, drew a lawsuit against Jordan and “Very rarely do we need (large Springs Metropark. One of those agricultural land tract out-state for the entire period of 2005 the city by a nonprofit citizens well pump pistons) or an elaborate sites is already producing, and a was often easier. through 2008, according to MDEQ. group in May. setup at these sites. For at least second is almost finished drilling, Recently, however, the busy re- But some of those outstate re- But the two companies have also three wells, not everyone knew we Brower said. serves of years past in northern serves have been widely explored drilled under relatively quieter were there, and when word got out, Executives at Savoy and Paxton Michigan have been widely tapped, or are richer in natural gas, which lease deals with the Huron-Clinton they called to complain and say, did not return phone calls. financing has been tougher and a has been trading at a six-month Metropolitan Authority for park sites ‘Don’t drill at that site,’ and we had recent ebb in natural gas prices has price low and is much deeper, and in White Lake Township and on to tell them we were already done put explorers off of tapping the more expensive, to drill for at state property in Livingston Coun- and had been there a while.” Complications much deeper Utica Collingwood Shale deposits in northern Michi- some northern Michigan sites. ty. Governments are a popular Patrick Gibson, vice president But the local acceleration is do- gan, said Hal Fitch, chief of the place for explorers to seek lease at West Bay, said the suburban ing little to pull Michigan as a state Office of Oil, Gas and Miner- deals, executives said, because they well sites are usually less than 20 whole out of a wider exploration als. All of that makes oil and South- Resident backlash are likelier to own the larger land feet high and not easy to spot. The slump. Data from MDEQ shows east Michigan more appetizing tracts the companies need and ben- company has not yet sought a DEQ The uptick in suburban Detroit new oil and gas well permits grew than it used to be. prospecting has garnered a few lo- efit from the new revenue stream. well permit for Rochester Hills to 205 last year from an 80-year low “Permitting activity is pretty cal headlines for exploration com- Competitors Savoy Energy LP of and will likely wait to see the out- of 195 in 2012, and is on pace for low right now. That kind of follows panies like Jordan Development Co. Rockford and Paxton Resources LLC come at the Shelby Township site just 172 permits statewide this a typical historical pattern, where LLC and West Bay Exploration Co., of Gaylord have also obtained new first, he said. year. That’s well off the recent there’s shifting interest from one both of Traverse City, which are co- permits in 2014 to drill in Lenawee peak of 912 permits in 2008, and the If the current trend continues, (oil or gas underground) formation investors on oil wells in Oakland, and Washtenaw counties, respec- all-time high of 2,024 in 1992. this could prove to be one of the to another,” Fitch said. Wayne and Washtenaw counties. tively. busiest years ever for Southeast It’s not so much that Southeast West Bay obtained a permit ear- “We actually are going to be Michigan with about 40 oil well per- Michigan wells are rich ones — ex- See Next Page Fair Lane: Estate plans fundraising push as it nears 100th year ■ From Page 3 Management is still finalizing Fair Lane has all of the things nal relations. the list of capital projects and an in place that donors and contribu- By fall, foundation and roof re- annual business plan, so its targets tors would want to see — signifi- pairs will begin on the main house, for capital, programs and endow- cant and compelling stories, she said. When complete, those ment are not yet final, said Kath- strong community engagement will allow major restoration work leen Mullins, president and CEO of through rich and varied program- inside the estate to begin, perhaps both estates. ming, and a plan for where it as soon as next year. But only if But the overall plan is to take the wants to go and how it wants to get the estate has the money in hand campaign public next year as Fair there, Malone-France said. to complete the repairs and reno- Lane celebrates its centennial “The challenge is in identifying vations, Mullins said. birthday. a partner and making a com- “We’re not going to let this pro- During formal and informal con- pelling case to them,” she said. ject outstrip our resources,” she versations on the estate’s renova- To help it develop a compelling said. “We want to be absolutely fis- tion and fundraising plans with in- case as well as business and visitor cally responsible.” dividuals around the country and plans, Fair Lane has hired consul- even some outside the U.S., “there tants supported by a $250,000 grant has been strong interest expressed from the New York City-based Ford The finances for our plans to restore, re-imagine Foundation. Those consultants in- Fair Lane brought in $430,000 in

and reopen Fair Lane,” Mullins COURTESY OF HENRY FORD ESTATE-FAIR LANE clude Toronto-based Lord Cultural revenue for fiscal 2014, primarily said. There never has been a dedicated campaign for Fair Lane, although the Resources on strategic planning, the net proceeds from an annual The campaign already has the University of Michigan-Dearborn has raised money for the estate in the past. Gallagher and Associates in Silver dinner dance that Edsel and Cyn- well-connected Ford family helping Spring, Md., on interpretive plan- thia Ford started 26 years ago, to raise money. Edsel Ford II is and “a fantastic family with a very That includes establishing a base ning, and Ann Arbor-based Quinn Mullins said. chairman (as he is of the Ford important story,” Mullins said. of donors, creating a brand and Evans Architects Inc. on the restora- It pulled $277,500 out of reserves House board), and several members Mullins is no stranger to messaging (with pro bono help tion. from previous dinner dances to of the Ford family are on the Fair fundraising. She worked at other from Team Detroit) and building cover its total expenses of $707,500 Lane board, along with other local cultural institutions around the awareness of Fair Lane. for buildings and grounds mainte- and national leaders. They’ve country for more than 30 years be- Mullins said the historical signif- Capital repairs nance, utilities, insurance, 24-hour helped secure more than $11 million fore joining Ford House. And last icance of the site makes a big im- This month, work will begin on security and the salaries of four in commitments since the launch of September, Mullins hired pact with potential donors; the vital structural and safety issues at dedicated employees, Mullins said. its silent phase a year ago. Matthew Wawro as vice president Fords are considered an iconic the estate. A new water main will Ford House, by contrast, was Yet the effort still faces some un- of philanthropic initiatives. American family that has made snake down Evergreen Road and up able to draw $3.9 million from the certainties. Wawro has served in top very important contributions, from Fair Lane Drive to separate the es- interest revenue on its $92 million There has never been a dedicated fundraising positions at institu- putting the world on wheels to cre- tate’s water supply from UM-Dear- endowment, which combined with campaign for Fair Lane, though tions including Pace Academy in ating the $5 work day, the 40-hour born’s. $671,612 in earned revenue from UM-Dearborn has raised money for Atlanta, Cranbrook Educational Com- work week and mass assembly line Smith Group JJR will also begin admissions, site rentals, events, the estate in the past through larger munity, Harvard University, the Univer- concepts that led to the creation of repair work on the eroded Rouge memberships and grants, covered campaigns. And fundraising is a sity of Michigan, St. Joseph’s Universi- America’s middle class. There are River bank abutting the estate, its $4.57 million in expenses, she new activity for much of the team at ty in Philadelphia and the Barbara also stories to tell about the Fords’ which collapsed three years ago. said. Ford House, given that it operates Ann Karmanos Cancer Institute. commitment to environmentalism. Following repairs, it will work “What we hope is that Fair Lane primarily on interest income from “What we liked about Matt is he “We have been told that the es- with Fair Lane’s landscape histori- will evolve to be independent just an endowment left by Eleanor Ford had experience dealing with recruit- tate is the only place to tell their ans to reinstall the components of like Ford House,” Mullins said. in 1976. ment of donors on a national and lo- personal story,” she said. the landscape lost with the col- The endowment left by Eleanor cal level,” Mullins said. “It takes a It is challenging, but not impossi- lapse, including a riverside path “has given Ford House the ability different strategy when people can’t ble, to raise philanthropic dollars and bridge, Mullins said. to operate without the same Making the request just come over for lunch and see for historic sites, said Katherine Per the transfer agreement, UM- fundraising concerns as other non- The estate has a very good team what you are raising money for.” Malone-France, senior director of Dearborn is providing $600,000 for profits ... concerns museums in behind the initiative, including a There is a need to build some outreach, education and support for the water main installation and our backyard and across the coun- committed and experienced board, traditional components of the cam- historic sites at the Washington, separation of electricity completed try are struggling with,” she said. skilled consultants, a staff leader- paign from scratch, given that the D.C.-based National Trust for Historic in December and up to $500,000 for Sherri Welch: (313) 446-1694, ship team experienced in historic estate was owned by UM for more Preservation, in an emailed state- the riverbank repairs, said Ken [email protected]. Twitter: @sher- site planning and orchestration, than 50 years, Mullins admitted. ment. Kettenbeil, vice chancellor, exter- riwelch 20140714-NEWS--0035-NAT-CCI-CD_-- 7/11/2014 7:03 PM Page 1

July 14, 2014 CRAIN’S DETROIT BUSINESS Page 35

From Previous Page ropark in Milford Township, has made about $13 million since the 1990s, Gib- “Some of the drop (after 2008) was Krutko signs pact to remain Ann Arbor Spark CEO son said. Explorers usually negotiate also that it’s been harder to get invest- a royalty of one-eighth to one-sixth of BY TOM HENDERSON team after the first CEO, Mike ment dollars, but the Trenton-Black the revenue that wells produce in oil Finney, left Spark to join Sny- River formation wells in (southern or natural gas, pro-rated to their share CRAIN’S DETROIT BUSINESS der in Lansing as president and and Southeast Michigan) also only of the property covered by the lease. have to go about 3,000 feet deep, much Paul Krutko has signed a five-year contract to CEO of the Michigan Economic He estimates West Bay has drilled less than some other parts of the state. remain as president and CEO of Ann Arbor Spark, a Development Corp., taking much about 50 sites in Southeast Michigan So it’s attractive that way, for cost.” nonprofit economic development organization of Spark’s leadership with him. since 1986, of which about half have Fitch and others in the state office founded in 2005 by Rick Snyder, before he left the He said another was forming since wrapped production and are have said new well permits began world of venture capital to become Michigan gov- an economic development part- now plugged. The company reports trending southward between 2005 and ernor. nership with Monroe, Hillsdale, more than a dozen active wells in 2008 as new seismic imaging technolo- Krutko, 58, said the contract can be extended on Jackson and Lenawee counties. Oakland County and about a half gy found previously untapped oil re- a year-by-year basis if mutually agreed upon by Krutko “I really like the work we’re dozen each in Macomb and Wayne; it serves along the Trenton-Black River him and Spark’s board of directors. doing here at Spark. I’ve could start drilling the new well in formation, an oil reserve formation The three-year contract Krutko signed when he worked all over the U.S., and this is one of the Scio Township under its July 3 per- that runs generally from Jackson was recruited from San Jose, Calif., expired in finest platforms for economic development I’ve mit within 60 to 90 days. County through Hillsdale and April, and there had been rumors in Ann Arbor ever encountered,” said Krutko. Lenawee counties. Its three permits in White Lake and the local VC commuKnity that he was leaving Also fueling rumors of his departure was a per- Exploration was high along that for- Township were all issued within the to take a job elsewhere. ception there was a rift between Spark and the mation in the previous decade, but past two years, and West Bay is also a Krutko told Crain’s that the Spark board was MEDC. Spark had run the first Michigan Pre-Seed dropped off sharply amid a drop in co-investor on a well in Livonia that aware he was being recruited. Fund, but when the state created a second fund in crude oil prices and loss of investment has been collecting from reserves be- “People have contacted me and presented me April, it was turned over to a new nonprofit, De- capital by 2009. Since then, explorers neath Schoolcraft College since 2009, he with a variety of opportunities,” in part, he said, troit-based Invest Michigan. have generally moved eastward to- said. because of his high profile nationally last year as And Spark’s role as fiduciary of the annual Ac- ward suburban Detroit as other Tren- Southeast Michigan “has been a chair of the Washington, D.C.-based International celerate Michigan Innovation contest in Detroit ton-Black River wells run their course. comparatively unexplored area, and Economic Development Council, an association of was recently turned over by the MEDC to Invest there’s unique geography here,” he economic development professionals. Detroit. Krutko denied rumors of a rift with the said. Krutko said one of the highlights of his tenure MEDC. “We have a good, strong working relation- What lies beneath But Brower said the first White at Spark was rebuilding a strong management ship with the MEDC.” Some Southeast Michigan wells Lake site is only producing a moder- produce quite well. One Jordan and ate yield of oil so far, and drilling is West Bay joint venture in Troy, near not yet complete on a second one. the Michigan State University Manage- He also said the state continues to ment Education Center, cost less have a few regions of high invest- Accelerate Michigan program offers $1 million in prizes than $3 million to drill in 2002 but has ment and interest, like suburban De- produced about $60 million of natur- troit and the Gladwin County and Accelerate Michigan is seeking applicants for its program offers a $500,000 grand prize and an addition- al gas since then, with MSU and the western Saginaw Bay areas, but annual business competition, in which early al $500,000-plus in awards of cash and in-kind prizes. Michigan Department of Transportation Michigan as a whole is still in a fairly stage technology companies can receive coaching The competition showcases business innova- as an adjacent landowner splitting slow year and local companies have and feedback from an international cadre of ven- tions to potential investment capital and targets about a one-sixth royalty or $10 mil- begun exploring other states. ture capitalists, and network with investors from business startups with potential to generate an lion on sales since then, Brower and Chad Halcom: (313) 446-6796, chal- across North America. Applicants can also win immediate financial impact. Gibson said. [email protected]. Twitter: @chadhal- cash and in-kind prizes. Applications are due July 23. For more infor- Another well, at Kensington Met- com The Accelerate Michigan Innovation Competition mation, see acceleratemichigan.org.

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Page 36 CRAIN’S DETROIT BUSINESS July 14, 2014 Chocolate: VernDale tastes sweet biz success with new plant ■ From Page 1 ufacturing-centric workforce, “Our customers needed to be Johnson said. sure there was a supply of roller The Weaver Street plant, nestled milk product,” Johnson said. at the end of a dead-end street near “They have been the propelling a set of train tracks on 8.5 acres, force in convincing us the expan- was the former home of Detroit Pure sion was needed for us to stay in Milk Co. and then later the Wesley business over the next 20 years.” Ice Cream plant. But it has been The technology behind the prod- abandoned since Wesley went out uct is straightforward: Milk is dis- of business in 1998. tributed onto rotating, steam-heat- VernDale acquired the dilapidat- ed rollers to evaporate the water. Dale Johnson, ed site in January 2013 and began The end product is a flaky dried president and the $1 million demolition project milk, which maintains flavor owner of VernDale soon after. Save the steel exterior much longer than raw milk. Products, hopes and some brick and tile work, It’s a specialty ingredient; Vern- the new milk plant much of the plant is brand new. Dale is the only roller-dried milk in west Detroit supplier in the U.S., Johnson said. will capitalize on Comerica Bank financed the ex- VernDale’s new plant will add 12 America’s taste pansion, Johnson said. Southfield- for premium million pounds of roller milk prod- based Plante Moran Cresa LLC man- chocolate. aged the process; Farmington uct to its current 20-million pound KENNY CORBIN annual capacity at its original plant Hills-based Design Systems Inc. was the engineering firm; Fishbeck, and headquarters on Lyndon Street, That’s according to a May study by VernDale spent more than $1 the expansion was necessary. Thompson, Carr & Huber Inc. in Novi east of Wyoming Street, in Detroit. Australian research firm IBISWrold million each on two new roller “We can run about eight months was the lead architect; and Novi- VernDale’s expansion is expect- Inc. dryers for its Weaver Street plant, at this capacity, but we had to do based Oliver/Hatcher Construction ed to boost revenue to $35 million Americans now prefer Euro- which it purchased from Nether- something,” Johnson said. “We and Development Inc. rehabbed the in 2014 for the 48-employee manu- pean chocolate “because foreign lands-based Andritz Gouda BV. wouldn’t survive at this pace for building. facturer, Johnson said. chocolates are perceived as higher Besides the difference in taste, much longer.” The new plant, about five miles quality than American products,” roller-dried milk allows chocolate The new plant, like its existing The new plant will be more effi- away, is supported by tax abate- the study said. to be produced with a lesser fat plant, will primarily use milk from cient, create less waste and be ments from the city of Detroit and Matt Hudak, a research analyst content by reducing the amount of Michigan dairy farms. more consistent than its current the Michigan Economic Development of the confectionery market for Eu- cocoa butter needed for the same operations, Johnson said. Corp. romonitor International Ltd. in Chica- viscosity, Johnson said. The beginning The plant is on a different power go, said the trend is about percep- He said VernDale’s process re- grid than its plant on Lyndon A matter of taste tion and consumer exposure to duces the amount of cocoa butter Johnson’s father, LaVern, and Street, which customers wanted more high-end candy. needed in chocolate making by 3 mother, Marlene, started the fami- because it wouldn’t go down in the Roller-dried milk, which is still “As more of these premium prod- percent to 4 percent. ly business in 1958. The company event of a power outage at the oth- prevalent in Europe but not in the ucts have been introduced, more According to the IBISWorld originally occupied space on the er plant. U.S., is preferred by premium Eu- people have become aware, and study, American consumers are Detroit riverfront but was forced to The plant investment also jump- ropean chocolate makers because they are simply recognizing a bet- demanding chocolate with healthi- move in the 1970s for the construc- started company investment and it produces a deeper, more ter quality product,” Hudak said. er ingredients, including an in- tion of the Renaissance Center. planning in other areas, such as caramelized flavor, Johnson said, VernDale relocated to the site of “The higher-end chocolate prod- creased demand for dark choco- moving computer servers off-site, than the spray-dried milk process the former Twin Pines Dairy, best ucts are doing phenomenally well late, or chocolate with healthful creating redundant systems and used to make most chocolate. known for its yellow and green ice because it’s not viewed as a mass add-ins. forming a succession plan, John- Most creameries abandoned the cream trucks that traveled in De- market product, and a relatively in- Johnson hopes U.S. milk prod- son said. Johnson’s children will roller-dried process years ago due expensive way to indulge.” troit neighborhoods throughout uct competitors don’t transition to not take over the plant, as they to the more efficient spray-dried Chocolate imports to the U.S. the roller-dried process, but said the 1950s and 1960s. have careers of their own outside process, according to a 2000 report are expected to reach $3.2 billion its new plant should insulate it It has continued to supply its the family business. VernDale is by The Manufacturing Confectioner. this year, growing by 5 percent an- from any increased competition. roller-dried milk product from currently weighing internal candi- Johnson said the spray-dried nually since 2009. “We’ve survived by using this that plant and will continue to do dates to make succession plans. process is as much as 70 percent Plus, the U.S. subsidiaries of for- process,” Johnson said. “But now so after the expansion. quicker, but VernDale didn’t aban- eign chocolate producers are ex- we’re building a bigger moat VernDale’s Weaver Street plant “The more we decided to expand, don its technology because its lo- panding in the U.S. with the grow- around our business so we’ll be was four years in the making. Its the more it became apparent we cally-based foreign customers con- ing sophistication of American able to weather any increased search included sites in Northern had to make significant changes,” tinued to demand it. tastes. competition.” Michigan and Indiana. Johnson said. “It was now or never While revenue for U.S. chocolate Swiss chocolate maker Lindt & Johnson said VernDale must in- But the Weaver Street site was … if we didn’t do this now, we’d be producers is expected to top $16.2 Sprungli AG, for example, has re- crease revenue by 5 percent annu- chosen because it allowed Vern- writing our own obituary.” billion this year, these companies portedly expanded its U.S. manu- ally to cover its debt. But with in- Dale to use existing management Dustin Walsh: (313) 446-6042, have seen increased competition facturing operations by more than creased demand forcing its current at both plants due to its proximity [email protected]. Twitter: from foreign chocolate companies. 350,000-square-feet since 2009. operation to run around the clock, and to capitalize on Detroit’s man- @dustinpwalsh

Wallace: Conservancy CEO brings a development background ■ From Page 3 riverfront community, building on Chicago and Toronto, Wallace said. Chicago River Walk. rants and fountains in and around opment, Mark brings a lot of exper- the more than $1 billion in projects He’s had plenty of time to admire Even during the six-month as- the river. tise,” Cullen said. that have already happened as a the riverfront with its views of signment in Toronto and year and a In terms of specific priorities The operational experience Wal- result of the conservancy’s work, Canada and Belle Isle as leasing di- half stint in Chicago, Wallace flew for waterfront development in De- lace brings will also help, Cullen Detroit RiverFront Conservancy rector of the GM Renaissance Cen- back to his home of 15 years in De- troit, however, “I’m not there yet,” said, in overseeing the 5 miles-long Chairman Matt Cullen said ter from 2007 to 2012. He also sup- troit’s Corktown neighborhood each Wallace said. riverfront programming and the “If you think of Sue Mosey and ported Wayne County’s acquisition weekend. The sunrises and sunsets “I want to understand who has maintenance and programming of what she does in Midtown, that’s a of the Guardian Building in 2006 on the Detroit River were one of the been looking at the market.” the Dequindre Cut, all of which fall role the conservancy can help and oversaw property management things that brought him back. While Wallace brings a solid his- under the conservancy umbrella. play, to be a champion for that part contracts for the city of Detroit’s “Every piece of land in the east tory of experience and expertise in “The CEO and the president of the city,” said Cullen, president Coleman A. Young Municipal Cen- and west riverfront is prime real real estate development and prop- needs to be a passionate advocate of Rock Ventures LLC. Mosey is pres- ter and Public Safety Headquarters. estate,” Wallace said. erty management, his experience and a visionary for what’s taking ident of Midtown Detroit Inc. More recently, Wallace man- Wallace is interested in imple- with nonprofits and the fundrais- place,” Cullen said. The conservancy’s goal always aged Bayside, a 13-acre residential- menting developments with which ing most rely on to operate is limit- Wallace is both of those things. has been to create a beautiful and commercial-use waterfront de- other communities have been suc- ed, but not nonexistent. He is a di- “Just as it was with Faye, it will walkway along the Detroit River, velopment in Toronto that was cessful, but also in establishing rector of the Boll Family YMCA in be important for the board to get “but from the very beginning, we funded through a public-private things specific to Detroit, the size Detroit and past director of Trinity Mark in front of the right people ... also wanted to be a catalyst for eco- partnership and served as the pro- of the river here and residents and House Theatre in Livonia and to open doors to people who have nomic development,” Cullen said. ject manager of River Point, a 1.3 tenants already on the waterfront. serves on the advisory boards of financial capacity to support the Nature meets the city’s urban million-square-foot mixed-use de- He likes the strong community Kiva Detroit and Hatch Detroit. project,” he said. backdrop along the Detroit river- velopment on the Chicago River programming Toronto has “Nobody comes with all of those Sherri Welch: (313) 446-1694, front, setting it apart from more ur- that includes a public park and an brought in and Chicago’s construc- (management) characteristics, but [email protected]. Twitter: @sher- ban waterfronts in cities such as extension of the city’s famed tion of kayak docking and restau- ... when it comes to physical devel- riwelch 20140714-NEWS--0037-NAT-CCI-CD_-- 7/11/2014 6:16 PM Page 1

July 14, 2014 CRAIN’S DETROIT BUSINESS Page 37 Hazel Park: Track still believes in horse power www.crainsdetroit.com ■ From Page 3 EDITOR-IN-CHIEF Keith E. Crain GROUP PUBLISHER Mary Kramer, (313) 446-0399 Northville Downs, which will run its thoroughbreds, Adkins said. isn’t the only problem with the hors- or [email protected] ASSOCIATE PUBLISHER Marla Wise, (313) 446- schedule in late fall. 5 TRACKS OUT OF THE MONEY Because of the expense, Hazel es themselves for Michigan tracks. 6032 or [email protected] More than 10,000 people came to Park will no longer host harness EXECUTIVE EDITOR Cindy Goodaker, (313) 446- Pinnacle Race Course: Intended to Industry watchers say a massive 0460 or [email protected] Hazel Park Raceway for the inau- be a $142 million thoroughbred races. “We’re going to leave the decline in Michigan thoroughbred MANAGING EDITOR Jennette Smith, (313) 446- gural night of thoroughbred rac- track as a thoroughbred track,” breeding also directly fuels the eco- 1622 or [email protected] track modeled on Churchill Downs DIRECTOR, DIGITAL STRATEGY Nancy Hanus, ing last month — so many that the on 320 acres near Detroit Adkins said. nomic problems faced by the state’s (313) 446-1621 or [email protected] beer ran out by the fifth of that Metropolitan Airport, it opened in Hazel Park added 30 employees tracks. MANAGING EDITOR/CUSTOM AND SPECIAL PROJECTS Daniel Duggan, (313) 446-0414 or night’s nine races, Adkins said. 2008 but was only partially built to handle the thoroughbred races, “The biggest hurdles will be [email protected] The second-weekend turnout was before its owners halted and is renovating and opening the decline in the foal crop,” SENIOR EDITOR/DESIGN Bob Allen, (313) 446- operations two years later because 0344 or [email protected] smaller, but still financially better horse barns that have stood idle Angst said. “In recent years, SENIOR EDITOR Gary Piatek, (313) 446-0357 or it was losing money and couldn’t than the harness races. for decades, Adkins said. Payroll thoroughbred breeders have re- [email protected] pay its bills. WEB EDITOR Kristin Bull, (313) 446-1608 or “It’s exceeded expectation,” he spending has increased by $15,000 duced the number of horses being [email protected] Ladbroke Detroit Race Course: said. “Overall, it seems to have a week. produced each year. That means RESEARCH AND DATA EDITOR Sonya Hill, (313) Livonia track closed in 1998. 446-0402 or [email protected] been the right decision.” The track also increased its lo- there’s strong competition for Saginaw Harness Raceway: WEB PRODUCER Norman Witte III, (313) 446- The 30-day thoroughbred sched- cal advertising budget to about 6059, [email protected] Closed in 2005. horses.” ule continues on Fridays and Sat- $500,000, from $200,000, Adkins EDITORIAL SUPPORT (313) 446-0419; YahNica Great Lakes Downs: Muskegon That race competition is coming Crawford, (313) 446-0329 urdays through Oct. 11. said. from nearby states that have other NEWSROOM (313) 446-0329, FAX (313) 446- course closed in 2007. 1687 TIP LINE (313) 446-6766 Industry observers are cautious- “We’re increasing our business revenue streams — slots, mainly ly optimistic about what Hazel Jackson Harness Raceway: REPORTERS Closed in 2008. enough, and our expenses, but all — that boost the track purses. Park is doing. Jay Greene, senior reporter: Covers health care, in all it looks to me it’s going to be a “Tracks in states like Ohio, Indi- insurance, energy utilities and the environment. “I would expect they’ll be well positive because I’m looking at a (313) 446-0325 or [email protected] ing after the initial boom of interest. ana, and West Virginia subsidize positioned to attract fans for the break-even year this year,” he said. Amy Haimerl, entrepreneurship editor: Covers “I know we’re going to run these their purses with money from entrepreneurship and city of Detroit. (313) 446- novelty of the races and as some- 0416 or [email protected] added gaming, which makes those thing to do on the weekends,” said entire 16 weeks with a (revenue) Chad Halcom: Covers litigation and the defense tracks attractive to horsemen,” industry. (313) 446-6796 or [email protected] Frank Angst, a increase over standardbreds; how Northville Downs BloodHorse.com’s Angst said. “In Tom Henderson: Covers banking, finance, staff writer for much remains to be seen,” Adkins technology and biotechnology. (313) 446-0337 or A message was left for Northville general, tracks that subsidize [email protected] BloodHorse.com said. Downs’ management. The track purses with money from added Kirk Pinho: Covers real estate, higher education, who was a long- Horse wagering has declined in Oakland and Macomb counties. (313) 446-0412 or told Crain’s in January that it lost gaming are having more success [email protected] time writer for general in Michigan. After win- money the past two years, includ- attracting those horses.” Bill Shea, enterprise editor: Covers media, the now-defunct ning bets are paid to patrons, the advertising and marketing, the business of sports, track, horse owners and their asso- ing an estimated $300,000 in 2013. It In 1992, Michigan’s annual foal and transportation. (313) 446-1626 or Thoroughbred [email protected] said it would spend $250,000 to con- crop was 518 horses, according to Times. ciations, and the state and local Dustin Walsh: Covers the business of law, auto municipality each get a cut of the vert its racing surface for thorough- the earliest data available from suppliers, manufacturing and steel. (313) 446- “Generally, 6042 or [email protected] breds this year, and its season will The Jockey Club, the New York City- Saturdays are betting, both live and simulcast, as Sherri Welch, senior reporter: Covers nonprofits, laid out in a complex formula. run Oct. 12-Nov. 16. based breed registry for thorough- services, retail and hospitality. (313) 446-1694 or the best days in [email protected] Angst Northville Downs opened for bred horses in the U.S., Canada terms of handle The majority of betting is on LANSING BUREAU harness racing, or standardbred and Puerto Rico. The data is col- Chris Gautz: Covers business issues at the Capitol at U.S. tracks. The chance to bet simulcast races. racing, in 1944. These will be its lected by Lexington, Ky.-based and utilities. (517) 403-4403 or [email protected] some major races on simulcasts Last year, Hazel Park had $3.3 first thoroughbred races. Equibase Co. LLC, a national data- ADVERTISING and then see live racing should million in live wagering, down 21.4 percent from $4.2 million in 2012. Mike Carlo, operations manager base of industry statistics. SALES INQUIRIES (313) 446-6052; FAX (313) work well.” 393-0997 In 2011, it was $4.1 million. and co-owner of Northville Downs, In 2012, Michigan’s foal crop Still, the track won’t survive told Crain’s in 2012 that the track SALES MANAGER Tammy Rokowski without additional forms of gam- Simulcast betting at the track was 63, a nearly 88 percent decline SENIOR ACCOUNT EXECUTIVE: Matthew J. fell 8.8 percent in 2013 to $57.3 mil- had lost 60 percent of its business since 1992. The 2012 crop repre- Langan bling revenue, Adkins said. For since the Detroit and tribal casinos ADVERTISING SALES Christine Galasso, Jeff years, Michigan’s horse tracks lion from $62.8 million in 2012. In sented just 0.3 percent of all foals Lasser, Sarah Stachowicz 2011, it was $64 million. opened. The track had a $225,000 in North America. It was 1.4 per- CLASSIFIED SALES Angela Schutte, manager, have been stymied in their efforts (313)-446-6051 Statewide, the total live and profit in 2011. to get legislative approval to add cent in 1992. DIGITAL MARKETING MANAGER slot machines or other forms of simulcast waging in 2013 was “With an uncertain racing future Jennifer Chinn $126.9 million, an 8.1 percent de- AUDIENCE DEVELOPMENT DIRECTOR Eric Cedo gambling via smartphones or slot- Other tracks in the state in recent years, Michi- EVENTS MANAGER Kacey Anderson crease from $138.1 million in 2012. gan has seen a dramatic decline in like wagering game terminals. The tracks are trying to avoid SENIOR PRODUCER FOR DIGITAL/ONLINE Those declines are why Hazel number of thoroughbreds produced PRODUCTS Pierrette Dagg the fate of five other horse race SENIOR ART DIRECTOR Sylvia Kolaski Park and other tracks are seeking in recent years,” Angst said. “This courses in Michigan (see box, this SALES SUPPORT Suzanne Janik, YahNica Crawford The payoff new revenue streams. is important because one thing page). PRODUCTION MANAGER Wendy Kobylarz Bettors wagered $171,000 on nine these tracks could offer would be PRODUCTION SUPERVISOR Andrew Spanos Today, in addition to Hazel Park thoroughbred races on June 27, Ad- races restricted to horses bred in CUSTOMER SERVICE Beer and bistro and Northville, the state has two kins said. By contrast, the most the state.” MAIN NUMBER: Call (877) 824-9374 or write other operating tracks, both for har- [email protected] money wagered during the track’s In a bid to attract more patrons, Nationally, thoroughbred breed- ness racing: Sports Creek Raceway SUBSCRIPTIONS $59 one year, $98 two years. 10-day harness racing schedule ear- the track’s owners want to lease ing saw the foal crop drop nearly Out of state, $79 one year, $138 for two years. near Flint and Mount Pleasant Mead- lier this year was $64,000. half of an unused 65,000-square-foot 39 percent (37,828 to 23,150) from Outside U.S.A., add $48 per year to out-of-state ows. rate for surface mail. Call (313) 446-0450 or Another $300,000 was wagered glass and steel building to a micro- 1992 to 2012, data shows. (877) 824-9374. “The only way horse racing is go- on simulcast races on the inaugur- brewery for production and distrib- “The industry was hit pretty SINGLE COPIES: (877) 824-9374 al thoroughbred night, he said. ution, while using the other half for ing to survive is if the state wakes REPRINTS: (212) 210-0750; up and allows these tracks to have hard by the recession as prices or Alicia Samuel at [email protected] Crowds were deep at the betting a sports bar-style restaurant. dropped at sales. Breeders adjust- TO FIND A DATE A STORY WAS PUBLISHED: other products,” Adkins said. (313) 446-0406 or e-mail [email protected] windows for the live and simulcast “It seems like a perfect mar- ed by producing fewer horses,” riage,” said Adkins, who is seek- The track will continue to push CRAIN’S DETROIT BUSINESS IS PUBLISHED BY races, and the restaurant was full, Angst said. CRAIN COMMUNICATIONS INC. ing interested microbreweries. for online or smartphone wagering Adkins said. Ancillary track rev- He predicts that will reverse: CHAIRMAN Keith E. Crain The building was constructed on what’s called instant racing. It’s PRESIDENT Rance Crain enue increased 15 percent com- “The sales have rebounded in the pared to a typical harness race for $12 million as a casino in 2004 a way to wager on old races in TREASURER Mary Kay Crain past two years, so breeding is ex- Executive Vice President/Operations night. in anticipation of state approval which bettors get certain pari- William A. Morrow pected to pick up soon.” While pleased with the new rev- for slot machines at racetracks, a mutuel information but don’t know Executive Vice President/Director of Strategic Michigan’s thoroughbred breed- Operations Chris Crain enue, Adkins noted that 25 years measure that got legislative ap- which race they’re betting on. Executive Vice President/Director of Corporate ing could pick up if the races at ago a crowd of 10,000 at Hazel proval but wasn’t signed by Gov. Other states, such as Ohio, allow Operations KC Crain Hazel Park and Northville Downs Vice President/Production & Manufacturing Park would have wagered about Jennifer Granholm at the behest slot machines at racetracks — giv- Dave Kamis are successful. $1.25 million. That’s because of Detroit’s three casinos, Adkins ing rise to the portmanteau “raci- Chief Financial Officer “If breeders see these meets fare Thomas Stevens there were no casinos, no Inter- said. no” — and that increased revenue Chief Information Officer net, and the Michigan Lottery was The state’s casino industry op- has boosted race purses and lured well, I’m sure more horses will be Anthony DiPonio far more modest, he said. Horse poses any new gambling at Michi- horse owners there, away from produced in the state, but it will be G.D. Crain Jr. Founder (1885-1973) a gradual process,” Angst said. Mrs. G.D. Crain Jr. Chairman (1911-1996) gambling was serious business gan’s horse tracks, which poten- Michigan. EDITORIAL & BUSINESS OFFICES: for bettors. tially could siphon spending — The minimum race purse at Thoroughbred breeding (and 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 “We are the original form of exactly what the tracks say the Ohio racinos is $7,500, which is the housing, care, training, etc.) is not Cable address: TWX 248-221-5122 AUTNEW DET gambling in the state,” he said. Michigan’s 24 commercial and maximum here, Adkins said. a cheap business or hobby, so CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly, except for a special issue the “Twenty-five years ago, there was- tribal casinos have done to them “It’s really hard to attract quali- breeding is sensitive to market third week of August, and no issue the third week n’t anything else for people to wa- over the past 20 years. ty thoroughbreds,” he said. forces. of December by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. ger on. Now, we get a lot of fami- However, slots are no guarantee “Thoroughbreds are a racing Periodicals postage paid at Detroit, MI and lies, people looking for something of success: Ontario’s Windsor Race- breed. That’s, by far, the reason additional mailing offices. POSTMASTER: Send Other spending address changes to CRAIN’S DETROIT BUSINESS, to do on a Friday night.” way, opened as a harness track in they are bred. Some breeders race Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in The most wagered in the track’s To break even, Hazel Park’s own- 1965, closed in August 2012 despite the foals they produce, while other U.S.A. history was $1.42 million, by 15,372 ers had to invest in the track itself. the Ontario Lottery Corp. adding breeders primarily sell their hors- Entire contents copyright 2014 by Crain Communications Inc. All rights reserved. bettors on July 12, 1975. More than $300,000 was spent re- slots in 1999. es to buyers who will race them,” Reproduction or use of editorial content in any Track management will have a placing the running surface from Angst said. manner without permission is strictly prohibited. better idea of the financial boost the hard limestone used for trotters, Bill Shea: (313) 446-1626, from switching to thoroughbreds which was about a 3-foot depth, to Breeding issues [email protected]. Twitter: over the next few weeks — the level- the soft earthen track required by Attracting thoroughbred owners @bill_shea19 20140714-NEWS--0038-NAT-CCI-CD_-- 7/11/2014 6:07 PM Page 1

Page 38 CRAIN’S DETROIT BUSINESS July 14, 2014 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF JULY 5-11

have gone public this year. History and Culture, to open in seized and turned over to Mayleben said about half of Gilbert buys 2016 in Washington, D.C. the Detroit Land Bank. Buchan those 80 or so have also filed Auburn Hills-based The 104-year-old BEI S-3 forms to issue more automotive supplier Hirotec Building, at 601 W. Fort St., stock or other securities, at former Globe America Inc. was awarded a sold for around $1 million an average of $150 million. $1 million performance- to Mark Campbell, CEO of “If there’s any advantage Tobacco building based grant to aid in its ex- the Southfield-based Detroit sculptures in to being average, we’re av- pansion there, the Michigan Trading Co., who said he erage,” he said. Economic Development Corp. will renovate and continue dd the 58,000-square- Mayleben said continued said. The grant is expected using the four-story build- foot former Globe To- good trial results could also to create 140 jobs. ing as office space. A bacco Co. building to lead to a sale to a larger phar- Ann Arbor-based St. The Detroit Water and Dan Gilbert’s downtown De- auto hall show Joseph Mercy Health System maceutical company before a Sewerage Department said troit real estate empire. The secondary stock offering. plans to spend $25 million that it would begin sending Quicken Loans Inc. and Rock to add 30 private hospital warning letters immediate- Ventures LLC founder and rooms at its hospital in ly to 200 commercial and chairman purchased the Upscale caterer Forte Howell and develop a 28- industrial customers with six-story building at 407 E. bed short-stay inpatient accounts listed as more Belanger quietly sold Fort St. for $3.3 million, ac- unit at an outpatient center than 60 days overdue, The cording to Matt Farrell, exec- Troy-based Forte Belanger in Brighton. The upgrades Detroit News reported. utive principal/partner of quietly changed ownership are to be finished in 2015. As much as $19 million Bingham Farms-based Core last year, in a move aimed St. Joseph Mercy Ann Ar- in Detroit Brownfield Redevel- Partners Associates LLC, at preserving the high-end bor was rated one of the opment Authority tax incre- which represented the sell- corporate catering brand. country’s top 15 hospitals ment financing incentives er, the Gus Vincent Trust. The company’s sale to for heart surgery by Con- was approved by the Detroit Continental Catering and sumer Reports. Also, Hospi- City Council for four pro- Events LLC, also in Troy, for ON THE MOVE tals & Health Networks mag- jects, among them the new an undisclosed amount was azine’s listings of the Wayne State University COURTESY OF AUTOMOTIVE HALL OF FAME accomplished with no an- Oakland University hired nation’s most-wired hospi- Physician Group medical of- Alexander Buchan’s sculpture “Dream Cruise – the 1932 Ford nouncements or fanfare as Jeffrey Konya as athletic di- tals included Beaumont Highboy,” along with the original roadster he used as a model, fice building in Midtown. Forte Belanger’s former rector, ef- Health System of Royal Oak; will be at the show. The car’s owner, Crain Communications Inc. The U.S. Appeals Court in President and CEO John Chairman Keith Crain, and his wife are modeled in the sculpture. fective Aug. Detroit-based Detroit Medical Cincinnati said a lower Forte, now 61, retired. 11. Konya Center, Henry Ford Health Sys- court should have allowed Acquiring Forte was a has been he Automotive Hall of plans to issue more stock tem and John D. Dingell VA the lawsuit filed by Detroit way to catapult into the off- AD at Cali- Fame in Dearborn is and said the Form S-3 filing, Medical Center; Rochester Public Schools ex-CFO Joan premise market, bringing fornia State T hosting an exposi- known as a shelf registra- Hills-based Crittenton Hospi- McCray claiming she was the entire kitchen, staff and University, tal Medical Center; Birming- tion of more than a dozen of tion, gives the company fired because she reported design to a venue of the Bakersfield ham-based St. Joseph Mercy Alexander Buchan’s automo- flexibility the district had been operat- client’s choice, said Conti- since 2010. Oakland; and Dearborn- tive sculptures, and will in- to raise ing under a budget deficit. nental Vice President Robby Stew- based Oakwood Healthcare. clude one of the cars that in- funds if Konya The suit was ordered back Michael Roberts. art has been Auburn Hills-based spired a piece of his art. needed as it to federal court in Detroit. Investment in a larger OU’s interim athletic direc- transmission manufacturer The exhibition, called continues Wayne State University kitchen space and staff, tor since Feb. 1, when Tracy BorgWarner plans to invest “Driving Greatness: Bring- human tri- received a $1.3 million grant warehouse space, two new Huth left the position. $43 million and hire up to ing the Past Into the Future als on its from the Battle Creek-based trucks and new leased Scott Eathorne, M.D., 158 employees to expand its — the Art of Alexander cholesterol- W.K. Kellogg Foundation to space in downtown Detroit was named interim CEO of Water Valley, Miss., plant. Buchan,” runs from Aug. 1 lowering support a new effort to ad- at TechTown has helped Together Health Network LLC, through Sept. 28. drug, which dress issues of structural Mayleben Forte Belanger increase formed in May by St. Louis- Buchan, a Michigan artist carries the racism in Detroit. sales 25 percent year to based Ascension Health and OTHER NEWS specializing in bronze auto- working name of ETC-1002. Two Olympic-sized date, the company said. Livonia-based CHE Trinity motive sculptures, spent 38 The S-3 allows the compa- Artvest Partners LLC, an swimming pools and a bath Health. He is president of years working in General Mo- ny to issue a variety of secu- art market advisory compa- house are being reopened the physician-hospital or- tors Co.’s design studio. He rities, including preferred ny, said the Detroit Institute at Detroit’s Rouge Park as BITS & PIECES ganization Partners in Care. was chief sculptor. stock, common stock, se- of Arts’ works are worth $4.6 part of a $5.5 million reno- On display will be the nior debt and subordinated Eva Garza Dewaelsche, billion, but that the trea- vation project, Mayor Mike sculpture “Dream Cruise — debt. president and CEO of De- COMPANY NEWS sures eyed for sale by some Duggan’s office said. the 1932 Ford Highboy” The company raised troit-based creditors in the city’s bank- The number of state along with the original ac- about $73 million when it SER Metro- Livonia-based TRW Au- ruptcy likely would fetch recreation passports pur- tual roadster Buchan used had its initial public offer- Detroit Jobs tomotive Holdings Corp., the only $1.1 billion to $1.8 bil- chased in Detroit has risen to create the piece. The ing in June 2013. for Progress world’s biggest car-safety lion at auction. from 7.2 percent of regis- car’s owner, Crain Communi- Mayleben said that if re- Inc., was equipment supplier, re- Federal mediators an- tered vehicles to 34.2 percent since Belle Isle became a cations Inc. Chairman Keith sults of two ongoing Phase one of 16 ceived a preliminary nounced an agreement be- state park. After February Crain, and his wife, Mary Kay, 2b human trials repeat the people hon- takeover approach from tween the city and the Detroit 2015, visitors will need the are modeled in the sculp- results of Phase 2a studies, ored as a Germany’s ZF Friedrichshafen Police Officers Association on passport to enter the island. ture. a likely rise in demand for Champion AG, Bloomberg reported. core terms to become part of WXYZ-Channel 7 chief Buchan’s work is online company stock could make Dewaelsche of Change TRW acknowledged the a possible five-year contract meteorologist Dave Rexroth at alexanderbuchan.com. at a White House program takeover notice in a U.S. Se- covering wages, health care, a secondary public offering lost an eye in a fireworks The Automotive Hall of a good possibility. June 30. She was honored curities and Exchange Com- retention payments and pen- sions. Meanwhile, public accident but said he plans Fame, adjacent to The Henry Mayleben said results of for SER’s job help for ex-in- mission filing and said it is evaluating the proposal; it workers, retirees and bond- to return to the air. Ford, is open Wednesdays a trial of 349 patients at 60 mates. did not name the suitor or holders finished voting on a through Sundays from 9 U.S. sites should be ready Quicken Loans Inc. CEO disclose further details. plan to impose $7.4 billion in a.m. to 5 p.m. The exhibi- by the end of October. That Bill Emerson Goodwill Industries of cuts on investors and pen- OBITUARIES tion is free for those with trial is of patients who can’t and Mark Greater Detroit will add to its sioners as part of the city’s C. David Campbell, pres- paid museum admission. tolerate statins, the most Reuss, exec- chain of Southeast Michi- bankruptcy. ident and CEO of the De- For museum details commonly used drugs to utive vice gan thrift stores when it New Orleans-based Lib- troit-based McGregor Fund, and prices, visit lower cholesterol. president of opens a facility in Wood- erty Bank will provide mort- died July 7. He was 61. automotivehalloffame.org. Those results should be global prod- haven on July 19. The non- gage and rehabilitation A. George Hebel III, for- followed soon by results uct develop- profit also broke ground on loans to those with credit mer board chairman, presi- from a study of 132 patients Esperion wants OK to issue ment, pur- its fifth location in Livonia. scores as low as 600 and dent and CEO of Royal Oak- at 35 U.S. sites, this one of chasing and Dearborn-based Ford down payments as low as 3 based Bonal International more stock – if it needs it ETC-1002 being taken in Emerson supply Motor Co. is planning a $1 percent for houses being Inc., died July 6. He was 70. Ann Arbor-based Esperion combination with statin chain at million scholarship program bought through Detroit Land Jennifer Moore, former Therapeutics Inc. (Nasdaq: drugs. General Mo- named in honor of former Bank Authority property auc- business reporter and news ESPR) has filed a prospec- Raising cash fast isn’t a tors Co., CEO Alan Mulally that will tions. The effort is part of anchor at WDIV-Channel 4, tus with the U.S. Securities motivator. Mayleben said have joined provide financial assistance J.P. Morgan Chase & Co.’s former communications and Exchange Commission to that the company has close to automotive engineering $100 million economic devel- manager at Ford Motor Co. the Detroit- issue up to $150 million in to $70 million in hand, students. Ford also an- opment program in the city. and co-founder of media based Skill- securities. which will take it into 2016. nounced a $1 million dona- City officials an- consulting firm Konrad & man Founda- Tim Mayleben, Esperion’s About 40 U.S. biotech tion to the Smithsonian Nation- nounced a program by Moore Inc., died July 11. She president and CEO, said the companies went public in tion’s board al Museum of African American which drug houses could be was 64. company has no immediate 2013, and about that many Reuss of trustees. DBpageAD_DBpageAD.qxd 7/11/2014 10:19 AM Page 1

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Proud to be a “2014 Best for Vets Business School.” Walsh has been honored by Military Times for consistently providing a high level of service to veterans and military service members. At Walsh, we show we’re thankful for your service by waiving your application fee, giving you priority registration, and offering a grant to active and reserve members. walshcollege.edu/Veterans