GE Targets Homegrown Talent in Hiring Blitz

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www.crainsdetroit.com Vol. 27, No. 36 AUGUST 29 – SEPTEMBER 4, 2011 $2 a copy; $59 a year

Page 3 General fund won’t solve GE targets homegrown state’s UI debt troubles talent in hiring blitz

BY DUSTIN WALSH When GE announced the $100 million expan- CRAIN’S DETROIT BUSINESS sion at the Grace Lake Corporate Center site, for- merly Visteon Village, in 2009 with intentions General Electric Co.’s hiring spree in Southeast of hiring 1,100 workers averaging a $100,000 Michigan is anchored by local talent experi- salary, recruiters began looking to in-state enced in information technology. groups and programs to identify the area’s top About 90 percent of the center’s 700 employ- talent. Bankrupt jeweler’s legacy: ees at its Advanced Manufacturing and Soft- Tina Watson, an infrastructure manager at Two shops now aim to grow ware Technology Center in Van Buren Town- the center, interviewed for her position at GE ship hail from Michigan, said Kim Bankston, early last year and suggested the recruiter senior human resources leader for the site and check out the LinkedIn group she was running, corporate IT. Baker’s Dozen — which was an exclusive invi- The company is hiring about 10 IT profes- Inside JOHN SOBCZAK tation-only networking group of out-of-work IT “Incentives were how we’re able to put people sionals a week, and by 2013, the Van Buren fa- professionals founded by Gary Baker, now the In home stretch, RiverWalk here,” said Kim Bankston, senior human resources cility is expected to house the largest concen- leader for GE’s center in Van Buren Township. tration of GE IT employees in the world. See GE, Page 21 backers step up fundraising, Page 17 Crain’s Lists Lawyers flee Social media awakens Largest architectural firms, information technology Fieger over companies, Page 14 nation to Sleeping Bear workload rule Advocates tweet, blast and cajole to hit top of GMA poll This Just In Ethics concerns BY HOWARD LOVY ica” contacted North to get some Bid protest filed SPECIAL TO CRAIN’S DETROIT BUSINESS stock footage and told her Sleep- cited, disputed ing Bear Dunes was a finalist in in defense contract GLEN ARBOR — Locals Tom the “Good Morning America” Almost $890 million worth BY CHAD HALCOM Ulrich and Rachel North were not competition, the social media in- of business is on hold for in- CRAIN’S DETROIT BUSINESS as surprised as many were that frastructure already was in place. dustry teams led by Sterling “Good Morning America” view- “I think the important thing to Heights-based General Dynam- Geoffrey Fieger stands behind ers voted Sleeping Bear Dunes Na- know here is that we didn’t just ics Land Systems and BAE Sys- the new workload policies that tional Lakeshore the “Most Beauti- wake up when the ‘Good Morning tems Inc., after a bid protest have driven much of the recent ful Place in America,” with the America’ people called us and Friday in the week-old professional selection broadcast Aug. 17. Yet North Ulrich (say), ‘Well, we need to start do- Ground Combat Vehicle con- turnover at even many in Michigan who ing social media,’ ” North said. tracts. Fieger, Fieger, know the place well were amazed. Northern Michigan businesses “It’s important to start years in Losing bidder Science Ap- Kenney, Giroux & It’s beautiful. Sure. But the are tech-savvy, said North, mar- advance so that (you) have a good plications International Corp. of Danzig PC, and “Most Beautiful in America”? keting director for MyNorth.com, network and a good group of peo- McLean, Va., filed a formal he said former There are a few reasons the the online home of Traverse maga- ple that you can call on to support protest as expected before employees who dunes beat out some formidable zine. you.” the U.S. Government Account- claim to see eth- competition in an admittedly un- They have to be. New Yorkers When GMA producers men- ability Office, on the U.S. ical pitfalls scientific poll among people cast- visit Sleeping Bear, and they tioned that the competition was Army’s decision last week to should “get a ing their votes on a morning TV bring their smartphones, update close, “that was when we started life.” show’s website: Local businesses their Facebook pages and tweet. to really encourage folks to com- award two-year contracts to Fieger the two companies with team This month, know what they’re doing when it This is how many decide where municate not only by their Face- leadership in Sterling former Fieger associate Todd comes to social media, and people and how to spend their vacation book and their tweets, but also Heights. Weglarz opened the Law Offices of attached to Sleeping Bear are dollars. See Dunes, Page 20 “We believe the govern- Todd J. Weglarz in Farmington pretty fanatical about it. So when “Good Morning Amer- ment relied on evaluation Hills, marking the 10th departure criteria outside its published from Fieger’s 20-lawyer Southfield request for proposals,” SAIC firm this year. Communications Director Former partner Ven Johnson Vernon Guidry said. “We and three other former Fieger at- See This Just In, Page 2 See Fieger, Page 20 “We didn’t just wake up when the ‘Good Morning America’ people called us and (say), At Stop 9 along Pierce Stocking Scenic ‘Well, we need to start doing social media.’ Drive, visitors can look down the 450-

NEWSPAPER ” foot dune to Sleeping Bear Bay. Rachel North, MyNorth.com BRIAN WALTERS 20110829-NEWS--0002-NAT-CCI-CD_-- 8/26/2011 5:44 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS August 29, 2011

Power foundation to fund products — which include the Dog- goneit alert system, Babysitit alert DISCUSSION TO TACKLE FUTURE OF AUTOMOTIVE JOBS THIS JUST IN education chair at EMU system, Knockout 360 fire extin- What is Michigan doing to remain Topics include what Michigan is guisher and EZstrollit baby stroller. ■ From Page 1 The American Electric Power Foun- attractive to its signature industry? doing to remain attractive to the It also plans to develop automotive dation announced a $1.5 million do- That’s the central question guiding automotive industry and what other products, he said. also believe several aspects of the nation to Eastern Michigan University an upcoming policy discussion regions are offering in the way of Hardge said the local workforce bid may have been discounted be- to fund an endowed chair in the col- planned by Crain’s Michigan economic development incentives cause of a lack of familiarity with lege of education. was a draw to relocate operations Business and Crain’s Detroit to lure OEMs and suppliers. their non-American origins.” Michael Morris, a graduate of EMU from California and Mississippi. Business. Crain’s is hosting a “There’s a larger force of hands-on Speakers include Sandy Baruah, The SAIC team, which included who serves on the university’s practical session titled “Can president of the technical people and high-level en- Detroit Regional The Boeing Co., Krauss-Maffel Weg- board of regents, is retiring from Michigan grow auto jobs?” Chamber; Peter Brown, publisher gineers in Michigan,” he said. mann and Rheinmetal, had proposed American Electric Power in No- Planned in partnership with the and editorial director of Automotive — Dustin Walsh developing a version of the vehicle vember. Morris is chairman, presi- Detroit Regional Chamber, News; and Neil De Koker, president using technology from the Puma, a dent and CEO. Automotive News and the Original and CEO of the Original Equipment German infantry fighting vehicle With the gift, EMU’s capital cam- Export Boot Camp offered Equipment Suppliers Association, Suppliers Association. in production. paign, started in April 2010, has the discussion will take place from A new education program Tickets are $40 each or $35 The U.S. Army received three raised more than $48 million. 7:30-10 a.m. Oct. 4 at The Henry through the Michigan Small Business each for groups of 10 or more when industry team bids on an $18 bil- — Ellen Mitchell hotel in Dearborn.The title sponsor & Technology Development Center is purchased in advance, and $50 at lion proposal to develop and pro- is Blue Cross Blue Shield of geared toward small businesses the door. For more information, visit duce more than 1,800 infantry Michigan. Hardge firms consolidate, who’d like to learn more about ex- www.crainsdetroit.com/events. fighting vehicles starting in 2018, porting. to replace its aging fleet of Bradley expand state presence The Export Boot Camp program armored vehicles. The two con- A group of related R&D and prod- at Schoolcraft College is presented by tracts awarded last week were for uct distribution companies is ex- the MISBTDC, and begins Sept. 15. RAIN S WORKSHOP FOCUSES ON FINDING CUSTOMERS early technology development. C ’ panding a Michigan operation in The five-class program will cover The Army’s standard practice is Companies interested in hear from leading private-sector Farmington Hills. topics like risk assessment, supply to stop work on pending contracts learning more about the Pure purchasing managers on how to Hardge Investments LLC invested chain management, finance, freight while a bid protest is pending be- Michigan Connect plan to create get into their vendor systems and $1.2 million to consolidate in Michi- forwarding, insurance, export reg- more procurement opportunities participate in specific roundtables fore GAO. gan under the names of Hardge In- ulations and marketing. for in-state businesses will have with buyers from the companies or — Chad Halcom dustries LLC and Hardge Research and Classes run from 9 a.m. to 3:30 access to top purchasing industries they choose. Development LLC, said Lawrence p.m. The cost of the program is $245 managers at an upcoming Crain’s The event will feature speakers Carl’s Golfland adds space Hardge, chairman. per person; $196 for senior citizens. event. Jeff Brownlee, purchasing director for The Michigan operations will be Those interested can register by Crain’s will host Buy Michigan, a the State of Michigan; John Eley Jr., Carl’s Golfland is expanding its run by former General Motors Co. ex- calling (734) 462-4438. Online, visit Second Stage workshop, Sept. 22. senior supply chain manager for DTE Bloomfield Township retail opera- The event is planned in partnership Energy Co.; Mike Finney, president ecutive Larry Wright, who will serve schoolcraft.edu and click on Small tion with the upcoming construc- with the Small Business Association and CEO of MEDC; Brian Smith, as the company’s CEO. Business & Technology Develop- of Michigan and the Michigan president of the Institute for Supply tion of a 15,000-square-foot building Hardge leased 15,200 square feet ment Center seminars. adjacent to the Telegraph Road site. Economic Development Corp. Management; and Cynthia Kay, of space in Farmington Hills for its — Nancy Kaffer Huntington Bank is the title owner and president of Cynthia Kay Owner Carl Rose said the two-sto- sponsor. and Co. ry expansion will be mostly for Participants at the 7:30-11:30 Tickets purchased in advance are warehouse use. CORRECTION a.m. session at the MSU $35 each or $30 for groups of 10 or With the company’s growing on- Ⅲ A story on Page 3 of the Aug. 22 issue, “Police-response rule alarms Management Education Center in more or $40 at the door. For more line sales, he said the new facility biz,” should have said almost 100 percent of Farmington Hills-based Troy can learn how the Pure information, visit will aid product flow. Sonitrol Tri-County customers use audio, not video, verification. Michigan Connect program works, www.crainsdetroit.com/events. — Daniel Duggan

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August 29, 2011 CRAIN’S DETROIT BUSINESS Page 3 New CEO will General fund won’t undo Workforce Development lead Valassis online push jobless insurance woes Digital coupons Move will cover UI debt now, deepen hole next year now only a small BY AMY LANE state also plans to tap an unem- lion interest payment could grow slice of revenue CAPITOL CORRESPONDENT ployment penalty and interest ac- to some $120 million. count for another $20 million. At the root of the problem is LANSING — With time run- Legislation is expected to move Michigan’s federal borrowing to BY BILL SHEA Pulling together on worker ning out, Michigan is planning to quickly in September to appropri- pay unemployment benefits. CRAIN’S DETROIT BUSINESS dig into its general fund for as ate the general-fund money, The debt now stands at about recruitment, training, Page 9 For almost all of its 41-year his- much as $41 million to help pay which was set aside in the cur- $3.1 billion, which is actually tory, Livonia-based Valassis Com- an approximately $106 million to rent budget year and never spent. down about $600 million from ear- munications Inc. has been known $108 million interest bill on its But taking money from the lier this year due to several fac- for paper products, such as news- federal unemployment insurance state general fund will only exac- tors. They include: Fewer people paper coupons and, more recently, debt. erbate problems next year, be- filing initial benefit claims, peo- Company index The payment is due Sept. 30 and cause solvency taxes collected in ple exhausting their benefit eligi- mailed discount offers. These organizations appear in this week’s Crain’s Michigan is about $39 million to The longtime company executive 2012 will need to first go repaying bility, greater employer taxes Detroit Business: who will take over as president and $41 million short of what it needs. the general fund, leaving less tax- generated as businesses hire Arnold J. Matusz ...... 20 CEO on Jan. 1 intends to accelerate A state solvency tax that began es available to make that year’s more workers, and improved col- Art Institute of Michigan ...... 11 Valassis’ efforts to crack the big nut this year on thousands of Michi- interest payment. lections of money owed to the it so far hasn’t: Digital discounts. gan employers is estimated to As a result, preliminary projec- agency. Ash Stevens ...... 13 Online “is not a significant part generate about $47 million toward tions of a $79 million shortfall in Blue Sky Senior Living ...... 17 of our revenue or profit picture to- the interest payment, and the next year’s estimated $136.4 mil- See UI, Page 21 Campanelli & Pear ...... 3 day, and it needs Chinn Jewelry ...... 19 to be going for- Continental ...... 18 ward,” said Rob Delphi Automotive ...... 18 Mason, who will Detroit GreenWorks Solutions ...... 9 replace the retir- Detroit Local Initiatives Support ...... 12 ing Alan Schultz Detroit Riverfront Conservancy ...... 17 as the company’s Jewelers split into new facets Detroit Venture Partners ...... 18 top executive. In its earnings DTE Energy ...... 10 reports, Valassis Successor shops aim below top end of market Fieger, Fieger, Kenney, Giroux & Danzig ...... 1 includes digital GalaxE.Solutions ...... 9 Mason services rev- General Electric ...... 1 BY DANIEL DUGGAN enue in a category with interna- Grace Lake Corporate Center ...... 1 CRAIN’S DETROIT BUSINESS tional operations revenue. That Hired My Way ...... 18 combined segment grew nearly 17 When the Jules R. Schubot Inc. Law Office of Michael R. Dezsi ...... 20 percent in the second quarter to jewelry store liquidated its assets Law Offices of Todd J. Weglarz ...... 1 $50 million — which was 8.8 per- at the end of 2009, it ended a third- Lighthouse of Oakland County ...... 12 cent of the company’s $565.2 mil- generation family business that Macomb Community College ...... 11 lion in quarterly revenue. had been around since 1917. Michigan Chamber of Commerce ...... 21 But Valassis has lagged other But in the aftermath, two busi- Michigan Department of Licensing ...... 21 marketers when it comes to digital nesses have been created. Michigan Department of Transportation ...... 4 coupon investment. Taking space in the former In 1999, it put money into Los An- Troy location of Jules R. Schubot, Michigan Economic Development ...... 10 geles-based save.com, a website former co-workers Joe Campanel- Michigan Infrastructure & Transportation Assoc. . . . 4 that allows customers to download li and Bradley Pear have opened Michigan Unemployment Insurance Agency ...... 21 coupons. A lack of profitability and Campanelli & Pear LLC. And taking Michigan Works ...... 9 advertiser leeriness prompted space in Birmingham, Brian New Economy Initiative ...... 9 Valassis to withdraw its backing in Schubot — grandson of Jules — Oakland Community College ...... 9 July 2001. has opened Schubot Jewellers Inc. Reiter & Walsh ...... 20 Its current digital efforts include While both are competing for Schubot Jewellers ...... 3 heavy emphasis on its redplum.com the Jules R. Schubot customer Skyline Diamond Setters ...... 19 savings site and nearly 1,000 Red- base, neither is targeting the top- Plum network sites. And last year, South University ...... 11 end jewelry niche the store once GLENN TRIEST GLENN TRIEST Southeast Mich. Community College Consortium . . . 10 Valassis reached a deal with Sunny- controlled. For some periods of Joe Campanelli (left) and Bradley Brian Schubot, grandson of Jules Tapper’s Diamonds & Fine Jewelry ...... 19 See Valassis, Page 19 time before the recession, the av- Pear have opened Campanelli & Pear Schubot, has opened Schubot erage sale figure topped $10,000 at in Troy. Jewellers Inc. in Birmingham. TRW Automotive ...... 18 Jules R. Schubot. United Way for Southeastern Michigan ...... 12 OTHER MOVES Schubot Jewellers is pushing flexibility he wanted to move for- “I’ve always wanted a brand; to University of Phoenix ...... 11 for sales in the $1,000-to-$10,000 ward on an entire label of jewelry design, manufacture and sell my On Friday, Valassis announced two Valassis Communications ...... 3 range on a regular basis, and during his 20 years with the store. own jewelry” Campanelli said. “It additional executive personnel Walbridge Aldinger ...... 13 Now, as an owner, he does. will be the same quality as some- moves that take effect Jan. 1: Campanelli & Pear is trying to get Workforce Intelligence Network ...... 9 pieces that ordinarily might sell Campanelli & Pear expanded thing like Tiffany’s, with an avant- Suzie Brown, currently chief the old retail space from 2,000 garde feel to it. Just at a fraction marketing officer, will add the for $15,000 into the $10,000 range. additional job duties of executive “But we’re also selling earrings square feet to 3,600 to include a of the cost.” vice president of sales and for $100,” said Pear. manufacturing area, where a staff From a business standpoint, marketing. She replaces Rob of six diamond-setters and gold- Pear said selling their own line of Mason, who becomes president smiths make jewelry. In the past, jewelry will allow them to contin- Department index and CEO. Brown has been with the What they always wanted to do Campanelli was the entire jewel- ue selling expensive diamonds, BUSINESS DIARY ...... 16 company 27 years. Among the differences between ry-making department. but cut down the overall price of CALENDAR ...... 13 Ron Goolsby, currently executive Campanelli & Pear and Jules R. The jewelry-making area, de- the jewelry products being sold. vice president of manufacturing Schubot is the level of jewelry signed to be shown off to cus- “It’s one way that we can con- CAPITOL BRIEFINGS...... 4 and client services, assumes the manufacturing taking place. tomers, has a window with a view tinue to acquire and sell large dia- CAREERWORKS ...... 15 newly created position of COO. Co-owner Campanelli was the of the workers and a sign reading monds,” Pear said. “We can sell a He’s been with the company CLASSIFIED ADS ...... 16 “Do not tap on the glass or feed for 28 years. jewelry designer for Jules R. KEITH CRAIN...... 6 Schubot. He said he never had the the jewelers.” See Jewelers, Page 19 LETTERS...... 6 MARY KRAMER ...... 7 Living and Investing in the D online Shea’s Stadium OPINION ...... 6 Download this year’s supplement on life and Bill Shea provides updates on the THIS WEEK @ PEOPLE ...... 15 developments in the city, crainsdetroit.com/ business of Detroit sports on his blog, WWW.CRAINSDETROIT.COM lidpdf. Non-subscribers must register for free. crainsdetroit.com/sheasstadium. RUMBLINGS ...... 22 WEEK ON THE WEB ...... 22 20110829-NEWS--0004-NAT-CCI-CD_-- 8/26/2011 3:43 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS August 29, 2011 Employee BenefiBenefits ts Experience Road-funding bills stall In Your Corner. while Snyder forms plan

LANSING — Some law- the state general fund. Richardville, R-Monroe, could not makers are trying to rev Proos’ and Agema’s speak specifically to the Proos bill up a solution to Michi- Capitol bills would direct that but said the Senate “will be look- gan’s annual search for Briefings general fund portion — ing at a variety of options regard- matching funds to draw which by some analyses ing transportation funding into down federal dollars for would be more than $100 the fall and beyond, and we will roads and bridges. million based on fuel work in cooperation with the ad- But bills on House and prices and consumption ministration and the House.” Senate floors may stall — toward roads instead. The Michigan Department of Trans- amid opposition by Gov. The money would go into portation opposes the Proos and Rick Snyder’s adminis- the State Trunkline Agema bills because Snyder is de- tration to acting before Fund where it could, veloping his proposal and needs to the governor’s developing among other things, be have all options available to him, infrastructure proposal. Amy Lane used for state matching said Kelly Bartlett, MDOT director Snyder is scheduled in dollars for federal funds, of government affairs. October to present his special mes- and to county road commissions, The bills find favor with the sage to the Legislature on infra- cities and villages. Michigan Infrastructure and Transporta- structure, which he views as en- Proos said that in recent years, tion Association, which sees them as compassing roads and bridges as “we have continually scrambled to a small part of a needed overall plan well as areas like rail and transit, find the monies available, either for transportation infrastructure. aviation, ports, broadband, water through general fund, or shifts in “These bills are a great way to cap- and sewer. funds or transfers in funds, to ture sales tax revenue and provide it The governor’s office is “cur- make the federal match.” for roads,” said Keith Ledbetter, rently examining and exploring all And the legislation will take off MITA director of legislative affairs. road funding options,” said Snyder the table the issue of potentially Michigan is one of a handful of press secretary Sara Wurfel. raising gas taxes to meet the feder- states that assess sales tax on gas Nancy Farnam But state Sen. John Proos, R-St. al match, he said. purchases. And while federal and Joseph, and Rep. David Agema, R- “Why are we fighting annually state excise taxes on Michigan fuel Grandville, think they have at about whether we have enough purchases go toward transportation least one piece of the puzzle. monies for federal match? The an- uses, people are often surprised to Their legislation — Senate Bill swer is, we do. And each of us, as learn none of the sales tax on gas 351 and House Bill 4521 — would consumers, pay it at the pump al- goes toward roads, Ledbetter said. First Tier Ranking put toward road purposes an unre- ready,” he said. House Transportation Commit- in Employee Benefi ts stricted portion of Michigan sales Agema said he wants to prevent tee Chair Paul Opsommer, R-De- (ERISA) Law tax that’s assessed on gasoline. Cur- the state from raising taxes. In- Witt, said he thinks the Proos and Contact Nancy at [email protected] rently, some of the revenue from stread, it should use the money it Agema legislation should be the 6 percent sales tax on gas is ear- has more wisely, he said. Both he signed into law. He is working on I Novi I Grand Rapids I Kalamazoo I Grand Haven I Lansing marked for the School Aid Fund, and Proos would like the legisla- additional transportation funding revenue-sharing and other purpos- tion, which has been passed by ideas, including constitutionally es, with the remainder going into committees in both chambers, tak- earmarking money for road fund- en up now and passed. ing and looking at the future im- But that’s not looking likely. pact of electric vehicles that won’t In the House, Ari Adler, press pay the gas tax. secretary to House Speaker Jase He also has sponsored a resolu- Bolger, R-Marshall, said there are tion to encourage Congress to pro- no plans to take up any transporta- vide more state autonomy in trans- tion funding bills until after Sny- portation spending, by allowing der’s infrastructure message. states to opt out of levying the feder- “After we hear some of his pro- al excise tax on gas if they increase posals and begin diving into the their own gas taxes by the same budget discussions for next year, amount and constitutionally dedi- we’ll have a clearer picture of cate them fully to transportation what the plan is for some of the leg- needs. islation,” Adler said. Amy Lane: (517) 371-5355, Amber McCann, press secretary [email protected]. Twitter: for Senate Majority Leader Randy @alanecdb A sponsored webinar Join Donna R. Childs, author, Prepare SMALL BUSINESS SERIES: Part one of three for the Worst, Plan for the Best: Disaster Exceptional Leadership. Preparedness and Recovery for Small Preparing Businesses. Delivered. Your Business Small businesses are far more vulnerable to common emergencies that cause a sudden loss in revenue. Things like power outages, burst water pipes or For Everyday equipment failures can ruin an otherwise proﬁ table week. Extended problems, like road construction, can Disasters cause a business to completely fail. How can your small business prepare for the high frequency events that it’s likely to face?

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Page 6 CRAIN’S DETROIT BUSINESS August 29, 2011 OPINION TALK ON THE WEB From www.crainsdetroit.com Manager to do whatever he wants. Re: Bar owners against smoking ban Reader responses to stories and This really may be the point of Replacing tax will be Why would we not allow the owner blogs that appeared on Crain’s of the business the ability to determine this new reform and the Snyder website. Comments may be agenda. The idea is to create their fate? If you do not wish to fre- edited for length and clarity. scorched-earth policies to gut state quent their business or they are not revenue to create a pure “free mar- able to hire employees to support ket/corporate state” managed by necessary hard work their business, they will make the yours equal. EFMs. appropriate business case decision. Michael Christie The reality is that the economy ichigan’s personal property tax is disliked by the 215025 stinks and at best, these policies businesses that pay it and many of the governments Who are these unprogressive Re: Snyder targets $800M biz tax may work to steal businesses from M that collect it, and it’s also a target for replacement bar owners that don’t care about Bankrupting towns may be the other states on the extreme short by Gov. Rick Snyder’s administration. the health of their employees or pa- point here. Once a town is in trouble, term until the next race-to-the-bot- trons? Find other ways to make thanks to Gov. Rick Snyder’s state- Even so, getting rid of it is going to be problematic. tom “business friendly” state gives your business better; don’t try to revenue-gutting policies, Snyder can them a better deal. That’s why we believe Lt. Gov. Brian Calley, charged by bring everyone down to make send in an Emergency Financial Cheese Snyder with helping resolve the tax issue, should formalize what is now an informal process by convening a work group to come up with revenue replacements. The work group should have representation from such parties as manufacturers, the Michigan Municipal League, Citi- zens Research Council, Metropolitan Affairs Coalition and fis- LETTERS cal analysts from both political parties. Unlike the also widely loathed Michigan Business Tax, which was replaced by a corporate income tax, there’s no easy or obvious alternative to the personal property tax. Preserve, don’t just patch, roads The tax is a dedicated source of funding that represents as much as half of some local government budgets, and it’s tied Editor: Crain’s Detroit Business Roads plan coming Thanks for Keith Crain’s July 18 directly to bonding and tax capture in tax increment finance welcomes letters to the editor. column, “Maybe we just don’t Editor: districts. But it’s not a popular one, partly because it is paid All letters will be considered for Regarding Keith Crain’s July 18 have the money,” regarding the disproportionately by manufacturing businesses that make publication, provided they are column, “Maybe we just don’t state of our roads and your ques- signed and do not defame have the money”: You’re right. We expensive investments in machinery and equipment. tions as to why we can’t seem to individuals or organizations. don’t have the money. At least, The Michigan Municipal League has launched a campaign match the world-class quality of Letters may be edited for length Michigan road agencies don’t have for replacement revenue that would be constitutionally guar- Germany’s roads. and clarity. enough to keep Michigan roads in Although there are many fac- anteed. It has not advocated for a specific replacement, leaving Write: Editor, Crain’s Detroit sound condition. tors, one reason is key. Here in that to legislators. Business, 1155 Gratiot Ave., The condition of Michigan local the U.S., we have not sufficiently Detroit, MI 48207-2997. roads has been declining steadily The choices are few, and they include higher property or embraced “pavement preserva- E-mail: [email protected] for the past seven years (since the sales taxes, local or regional sales taxes, broadening sales tax- tion,” which assures roads are current system of record-keeping es to include services, increases in the state income tax or properly maintained and treated began). While the condition of for longevity. Instead, when bud- reconstruction). Neglected roads adopting a graduated income tax. Michigan’s state highways is as gets are tight, many cities, towns have shorter lives and must be re- Whatever the tax structure, Michigan cannot eliminate the good now as ever, with 90 percent and municipalities, as well as constructed much sooner than of highway miles rated “good,” personal property tax without providing a predictable and pro- states, forgo essential proactive those that receive the proper reg- tected source of lost revenue for local governments. ular crack filling and surface this level of quality cannot be sus- maintenance because they can’t tained with current revenues. afford it. treatments. For every $1 we spend on regular maintenance, we will Without dramatic changes in the Michigan, to its credit and de- funding structure, fewer than 50 spite our difficult economy for the save $6 to $14 in costly reconstruc- Case for some incentives tion. percent of our highway miles will past decade, has managed to keep be considered good by 2020. a majority of its roads in good con- Governments at any level that Former Gov. Jennifer Granholm’s Michigan Economic forgo maintenance as a way to While such an outcome would dition, in part through a pavement greatly reduce the number of Growth Authority program was often — and justly — ma- preservation approach. In order to stretch their budgets actually cost ligned, but as Dustin Walsh’s Page 1 story on General Elec- taxpayers more money in the long tourists flocking to experience restore all of our roads to good con- Michigan’s beautiful natural won- tric’s MEGA-aided rapid ramp-up demonstrates, incentives dition, Michigan would essentially run, not to mention sacrificing road quality from year to year. ders, other industries would suffer, can play a legitimate role in economic development. need twice the current road budget Our highways, roads and too. Infrastructure is vital to manu- That’s why we were pleased last week that the state formal- every year, and it is already over facturing, agriculture and the ser- $1 billion. bridges will continue to deterio- ly decided to move forward with $100 million in available in- vice sector. Such a decline would To use a health care analogy, rate and the financial hole will centives to help facilitate competitive or otherwise difficult deepen. It is a crisis that impacts also diminish our quality of life. not doing regular maintenance is An average Michigan auto dri- projects. Gov. Rick Snyder has been cool toward incentives, like waiting until most of the pa- commerce nationwide, as well as U.S. global competitiveness. ver pays about 2.4 cents in state contending that it’s better to have a good business climate and tients are nearly dead (full of pot- and federal road-user fees (fuel holes) and then trying to save a Larry Galehouse a level playing field. While we don’t argue with that overall, Director and vehicle taxes) for every mile paltry few with the most expen- Michigan can benefit from sometimes providing a pot-sweet- National Center for Pavement Preservation sive surgery or treatment (road Michigan State University See Letters, Page 7 ener to important projects. KEITH CRAIN: The world is a very dangerous place It’s as if we didn’t have a lot to few and far between in that we mortals face around to fix the damage. I have with the economy will have plenty worry about with the Middle East Michigan. But when they every year, there seems been amazed at how many emails I of work helping to rebuild. conflict, Libya, North Korea and a hit, they are dangerous to be someone who has have gotten in the past few days I hate to think that some sort of dozen hot spots around the world. and lethal. The weather created a business. from companies on the East Coast tragedy is an economic stimulus, Between terrorists, revolutions problems in our state are Most of us carry all that are ready, willing and able to but it has to be. There will be mil- and civil unrest, it’s not always a more often in winter, sorts of insurance. But assist me if I have any damage lions if not billions of dollars spent very pretty world. with blizzards and cold. when a problem comes from Hurricane Irene. on damages caused by hurricanes Now we’ve got to worry about Nature likes to cause up, it seems it’s never I don’t know what these compa- and other natural disasters, even nature, too. As Crain’s went to problems all year long; enough or it’s not the nies do during those peaceful times this year. Most of those funds are press, the East Coast was bracing no time of year seems im- right kind of coverage between disasters, but they all private insurance funds. for Hurricane Irene. It’s that time mune. Take last week’s for flood, hurricane or seem to be ready to help right now. Private enterprise always seems of year when hurricanes and tropi- earthquake, for instance. blizzard. You can only When you need these companies to find opportunities, in good times cal storms typically hit Florida, Mild by West Coast standards, but hope that the person who sold you after some sort of disaster, they are and in bad. For every disaster, the Atlantic Coast and the Gulf. scary to people on the East Coast the insurance has you covered for invaluable and indispensible. Inde- there seems to be an opportunity. Although tornadoes can be com- and even here in Michigan. your losses. pendent contractors whose home- I guess that’s good old capital- pletely devastating, they seem to be And yet, for all these disasters And there are plenty of folks building businesses have slowed ism. It’s not all bad. 20110829-NEWS--0006,0007-NAT-CCI-CD_-- 8/26/2011 4:29 PM Page 2

August 29, 2011 CRAIN’S DETROIT BUSINESS Page 7 MARY KRAMER: Young war veterans show great promise

The Aug. 29 cover of Time had a passing interest. His fa- then to Morocco to fall out, just from stress.” that fellowship. He will do very compelling cover story: “The NEW ther, Ted, is the club’s study modern Arabic It is no surprise, then, that well at whatever he pursues.” Greatest Generation: How young executive manager. and on to seven months Grant’s proudest moment was Fifteen were selected out of 558 war veterans are redefining lead- Grant is the oldest of as an intelligence ad- completing the seven-month tour applicants. Foundation President ership at home.” Ted and wife Annie’s viser in Iraq. Later, with all Marines in his unit alive. Jay Davis said in the awards an- The stories of veterans of Iraq four children. promoted to captain, he Just a few weeks out of combat, nouncement of this year’s 15: “We and Afghanistan reminded me of Like the vets in led a platoon of he sat through highly technical, believe they show the most promise another veteran’s story a little Time’s story, Grant is Marines in the Hel- scientific interviews for the Hertz to change the world.” closer to home. poised to achieve re- mand Province in Fellowship. He must have nailed it. Which would clearly make the Grant Gillary, 27, a graduate of markable things. Afghanistan. Stephen Munk, president and cover of Time — and maybe Crain’s. Southfield Christian High School, Salutatorian of his The area was so dan- CEO of the Detroit pharmaceutical was named this spring as one of 15 U.S. Naval Academy gerous, his father says, company Ash Stevens Inc., offered Mary Kramer is publisher of Hertz Foundation fellows for 2011. class in 2005, he earned that “even the Brits left advice during the application Crain's Detroit Business. Catch her The prestigious fellowship pays a master’s degree in it because of high casu- process. take on business news at 6:10 a.m. generously for study and living ex- mathematical modeling and scien- alty rates. Grant would tell us of “Grant is one of the most excep- Mondays on the Paul W. Smith show penses, which will support Grant tific computing at the University the stress of being 35 days in com- tional young people I have encoun- on WJR AM 760 and in her blog at as he begins his Ph.D. work in com- of Oxford as a Fulbright Scholar. bat zones at a time, of taking his tered,” said Munk, who, like me, is www.crainsdetroit.com/kramer. putational neuroscience at Johns He went on to officers’ training, helmet off and watching his hair a member of the DAC. “He earned E-mail her at [email protected]. Hopkins in Baltimore. It could be a five-year haul. A lot of Detroit Athletic Club members have followed Grant’s military career with more than

LETTERS CONTINUED A LOAN WITH ■ From Page 6 driven. We get what we pay for, and 2½ cents isn’t enough to continue to provide the kind of road service we received in the past, before inflation and improved vehicle efficiency robbed the fuel tax of its purchasing power. This fall, Gov. Rick Snyder will send a special message to the Leg- islature with a plan for putting Michigan road and transit finance on a more sustainable path, with- A CITIZENS BANK LOAN LETS YOU FOCUS ON THE FUTURE ... because the businesses out spending more money than Michigan road users have. Toward that will succeed tomorrow are the ones that make the right choices today. They are that end, the Michigan Depart- ment of Transportation is figuring led by individuals who see opportunity for growth and expansion, and take action with out how much money it will take complete conﬁdence. A loan from Citizens Bank will keep you moving forward and to bring world-class roads back to Michigan. It won’t be unafford- never wondering, “What could have been?” able, and you’ll have the answer to your question. An increase to European tax lev- Get the loan you deserve now. To make an appointment with a Citizens Banker, call els of $5 per gallon won’t be needed to give Michigan the kind of roads 800-946-2264 or visit CITIZENSBANKING.COM/BUSINESS. you saw on your autobahn trip. Most of those European fuel taxes go for general government spending, not roads. But the Germans do spend more on pavements in search of long life, for techniques such as extra- deep concrete pavements and stone-mastic asphalt. So far, no American road agency has found it worthwhile to spend at this level, but we have learned from these practices. One side of the segment of I-375 that terminates at the Crain’s headquarters was rebuilt in the 1990s with German-style pavement, as an experiment. The other side was the MDOT standard of the period. I’ll let you figure out which is which. So far, both sides are wearing about the same, but in another couple of decades, we’ll know how the German design held up. In the meantime, we’ve adopted some of the features of the foreign pavement design that seem to be giving us much of the benefit at only a portion of the cost. Thanks again for a column that shed more light on the challenges of maintaining and enhancing infrastructure, a vital component of reinventing Michigan as a great place to live, work and play. Jerry Jung Chairman Michigan State Transportation Commission DBpageAD.qxp 8/25/2011 4:16 PM Page 1

There’s good news and there’s good news. We’re not only upggrar ding your network today, but we’e ree also bub sy buuilldingng a nexe t-geeneration, highg -speed network. This included s:s ˾ Ú ÑÜÑ ËÎÓØÑ ËØØÎ ËÎÎÎÓØÑÑ ØÏÏá ÍÏÖÖ ÝÓÝ ÞÏÝ ÒÏÜÏ ÓØØ ÞÒÏ DeD trtroit area annd all ara ound theh country ˾˾ ÎÎÎÓØÑ ×ÙÜÏ ʨÌʨÌÏÜ ÙÚÚÞÓÍ ÍËÍ ÌÖÏ ÞÙ ÍÏÖÖ ÝÓÞÏÝ ÐÙÜ ÑÜÏËÞÏÜ ÍËÚËÍÓÞã ˾˾ ØØÎ áÏáÏ˪˪ÜÏ ÚÖÚÖËØØØÓØÑ ÞÙÞ ÍÙÍ ×Ì× ÓØÏ áÓá ÞÒÒ̋Ù ÌÓÖÏ ÞÙÞ ÎÏÏÖÓàÏÜ Ë ÌÏÞÞÏÜ˜ ÝÞÜÙØÑÏÜ ØÏØ ÞáÙÜÜÕ˜ ËÎÎÓÎ ØÑ ÞÒÒÙßÙ ÝËËØÎÎÝ ÙÐÐ ÍÏÖÖÖ ÝÓÝ ÞÏÞ Ý ËÍÜÙÝÝÝ ÞÒÏ ØËÞÓÞ ÙØØ ÞÙÞ ÎÏÎ ÖÓÖ àÏÏÜ ÞÒÒÏ ×ÙÝÞ ËÎàËØÍÏÎÎ ×ÙÌÓÌ ÖÏÖ ÌÜÙËËÎÌËØÎ ØÏØ ÞáÙÜÜÕ ÏâÏ ÚÏÏÜÓÏØØÍÏ ÜÙ× Ë ÝÓ×ÚÖÏ ÚÒÙÙØØÏ ÍËÖÖ ÞÙÞ ÞÒÏ ×ÙÝÞÞ ËÎÎàËØÍØ ÏÎÎ ÎËËÞËÞ ÎÙáØá ÖÙÙËÎÎ˜ ʶiss ÍÙ××ÓʵÏÎ ÞÙÞ ÎÏÖÓÖ àÏÏÜÓØÑ ÞÒÒÏ ÌÏÝÞÞ ØÏÏÞááÙÜÜÕ ÚÙÝÝÓÌÖÏÖ ÞÙ ÞÒÏ ÏÞÜÙÓÞ ËÜÏËÏ ˛ Ù ÝÏÏ ÙßÜ ÚÜÙÑÜÏÝÝ ÓØ ãÙßÜ ØÏÓÑÒÌÙÜÒÙÙÎ˜ ÑÙ ÞÙ ÐÙÍßÝ˛Ëʵ˛ÍÙ×˹ÎÏÞÜÙÓÞ ÙÜ ÐÙÖÖÙá ßÝ ËÞ ÞáÓʵÏÜ˛ÍÙ×˹̰ÏÞÜÙÓÞ

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August 29, 2011 CRAIN’S DETROIT BUSINESS Page 9

NOTEBOOK GreenWorks plans to grow

A local effort is ramping up to train underemployed and workforce development disadvantaged workers for green- industry jobs. Detroit GreenWorks Solutions started in May 2010 through a two- year, $4 million grant as part of the Pathways Out of Poverty program authorized by the federal stimulus act. In the next two years, Detroit Marshalling forces GreenWorks seeks to train and place at least 360 unemployed and underemployed individuals in Network to pull together green-industry jobs, including weatherization, landscaping, forestry and urban farming. scattered worker training GreenWorks is a collaboration of nonprofit, public and private and recruitment assistance organizations led by Southwest Solutions, including WARM Training BY AMY LANE Center, The Greening of Detroit, AND SHERRI WELCH Henry Ford Community College and CRAIN’S DETROIT BUSINESS the Detroit Workforce Development Department. hen GalaxE.Solutions Inc. came to De- Of more than 190 people who troit last year, committing to 500 jobs have gone through the training W over five years, the New Jersey-based program, 87 have found company found a warm welcome but a employment, and GreenWorks has confusing maze of offers for help in re- earned an $858,000 grant for cruiting and workforce training. green-job training. “It could almost come across as compet- “I think we all understand that itive — you would get different organiza- to revitalize our community, we tions all with the same mission of attract- must enable ing and hiring talent coming to us, but families to you weren’t sure if or how they worked better their together … and financial didn’t know situation by DETAILS which to actu- providing For more information: Email ally work relevant skills [email protected] or with,” said training to [email protected] Ryan Hoyle, di- adults so they rector of global can obtain recruiting for the New Jersey-based good-paying health care systems developer. and long-term West “It created work for the company. If employment,” you’re going to speak with a dozen orga- said Linda West, director of nizations, you have to have a dozen meet- Detroit GreenWorks and the ings and follow-ups. It would have been Center for Working Families at nice to have one point of contact, or at Southwest Solutions. least a central organization.” She said GreenWorks was That’s shaping up to happen this fall. evaluated by federal auditors and A $1.5 million grant from the New Econ- is now regarded as a national omy Initiative is funding the Workforce Intel- model. ligence Network, a coalition of eight com- The training is free and available munity colleges and seven Michigan Works to eligible southwest Detroit agencies (see box below) that will do some- residents, and individuals are thing unprecedented in the Southeast placed in a 10-12 week training Michigan region: They’ll work in a coor- program of their choice. dinated fashion with local employers to When they complete their determine and respond to real-time em- course, graduates work with ployment needs. PHOTO ILLUSTRATION/GLENN TRIEST a job developer to connect them David Egner, NEI execu- Ryan Hoyle, director of global recruiting for GalaxE.Solutions, needed workers and training with job opportunities in tive director, said that while resources when the company came to Detroit last year, but he found it hard to get a clear the GreenWorks employer other states have a single picture of which local agencies could help him. A new regional effort aims to change that. network. community college system The $858,000 grant comes from with a statewide oversight Jobs for the Future, a Boston-based body, each community col- WHO’SINWIN nonprofit, as part of $6 million in lege in Michigan has its own The new Workforce Intelligence Network has eight community colleges and seven U.S. Department of Labor funding governance structure and fo- Michigan Works agencies working together with local employers on employment needs: it’s passing through for job cuses on its own geographi- retraining in seven U.S. cities. cal area. Community Colleges Michigan Works agencies “There’s not great incen- Ⅲ Macomb Community College Ⅲ Career Alliance Inc. The grant, awarded to United Egner Way for Southeastern Michigan tive for (the colleges) to work Ⅲ Monroe County Community College Ⅲ Detroit Workforce Development Department as fiduciary, will fund job training together if they focus only on their on lo- Ⅲ Mott Community College for about 300 people in residential cation and boundaries. We were able to Ⅲ Oakland Community College Ⅲ Livingston County Michigan Works energy-efficient building, bring them to the table to discuss com- Ⅲ Schoolcraft College Ⅲ Macomb/St. Clair Michigan Works retrofitting, deconstruction and mon issues in each of the geographies Ⅲ St. Clair Community College Ⅲ Oakland County Michigan Works around workforce, and that built a re- materials re-use, residential energy Ⅲ Washtenaw Community College Ⅲ Southeast Michigan Community gion-wide initiative,” he said. efficiency assessing and other Ⅲ Wayne County Community College Alliance environmental services. WIN has three main goals: Ⅲ Ⅲ District Washtenaw County Employment, “GreenWorks offers real hope of Gather, analyze and distribute labor Training and Community Services helping low-income families supply-and-demand data and information improve their economic on workforce needs and characteristics “We would like to have a point of entry ment at Oakland Community College. prospects,” West said. specific to the region. for stakeholders to be able to access the Ⅲ Conduct policy research and pilot Ⅲ Serve as a resource hub and central system on a regional basis,” said Sharon programs, “so that we innovate in the — Ellen Mitchell connection point for employers and other Miller, a co-chair of the WIN board and stakeholders on workforce development. dean of economic and workforce develop- See Network, Page 10 20110829-NEWS--0010-NAT-CCI-CD_-- 8/25/2011 3:13 PM Page 1

Page 10 CRAIN’S DETROIT BUSINESS August 29, 2011 Focus: Workforce Development Network: Uniting efforts ■ From Page 9 workforce system,” Miller said. ple points of contact within colleges Miller’s co-chair on the board is and agencies that might be able to William Sleight, director of Liv- provide manpower. ingston County Michigan Works. “(WIN) is about developing a Miller said WIN hopes to launch in more centralized way in which em- October and has be- ployers can now gun a search for an work with communi- executive director. Workforce is ty colleges, agencies Greg Pitoniak, “ and workforce in- CEO of the Southeast best done vestment boards to Michigan Community create an applicant Alliance, a Michigan regionally. pool that’s been es- Works agency that ” tablished by what serves outer Wayne Amy Cell, Michigan our needs are,” ulti- and Monroe counties Economic Development Corp. mately creating jobs. and is the fiduciary An early example for WIN, said WIN will be “a for- of how a coordinated framework malized partnership that mini- can help is DTE’s work with the mizes duplication and that allows nine-college Southeast Michigan us to respond as a team to major Community College Consortium, employer needs versus competing formed a few years ago. and confusing employers.” DTE needed to strengthen some Plans for long-term funding will of its employees’ core skills in ar- be developed when the full-time di- eas like math, reading comprehen- rector is hired. In addition, WIN’s sion and mechanical concepts, so board will establish a work plan they could advance into better- that lays out performance metrics paying jobs with the company. So and goals. Ray Kelly, DTE’s director of corpo- Aiding WIN is the Michigan Eco- rate safety and technical training, nomic Development Corp., which is went to the consortium with the dedicating two staffers to work learning requirements. full-time in Southeast Michigan One of the consortium members with the initiative. WIN talent had a course that met DTE’s re- partners Kasey Green and Loris quirements, Kelly said, and that Thomas will share space the state college in turn offered the course will provide for the WIN executive to any college in the network to de- director and staff, said Amy Cell, liver to DTE. The curriculum is senior vice president of talent en- now being provided to employees hancement at the MEDC. at DTE headquarters in Detroit by Cell said “workforce is best done a nearby college. regionally,” and as WIN unfolds, At GalaxE, Hoyle said one rea- its experience could be a model son to locate the company’s office that could be used in other parts of in Detroit “is the opportunity to the state. tap into the existing workforce you Michael Coast, president of the have and do retraining initia- Michigan Manufacturing Technology tives.” Center in Plymouth, said WIN will He said Oakland Community provide the quickest route to meet- College and Wayne County Communi- ing local employers’ needs. ty College have pointed GalaxE to “It’ll be one repository of infor- WIN, and he wants WIN “to help mation directly focused on the us navigate what our options are workforce needs of businesses in for workforce recruiting and train- Southeast Michigan,” he said. ing, and which firms would be best At DTE Energy Co., Kate Herwick suited to support our needs.” Rubens, director of corporate hu- Amy Lane: (517) 371-5355, man resources, said historically it’s [email protected]. Twitter: been challenging for DTE and other @alanecdb. Sherri Welch: (313) 446- employers to navigate through a 1694, [email protected]. Twitter: workforce system containing multi- @sherriwelch CBRE Auctions Capital Markets | Auction Services PORTFOLIO SALE :: OCTOBER 5 BUY ONE, BUY ALL | OWNER DIRECTS SALE OF NON-CORE ASSETS 1 The Otsego Club 2 Manistee National 3 Black Forest at & Resort Golf & Resort Wilderness Valley Gaylord, Michigan Manistee, Michigan Gaylord, Michigan Two 18-hole golf courses, including Two spectacular 18-hole golf Two scenic 18-hole golf courses “The Tribute” recognized as one of courses including Jerry Matthews’ on 360 acres the top 10 courses in Michigan Cutters’ Ridge Renowned creation of world-class Historic snow-skiing destination Luxury boutique hotel with indoor designer Tom Doak that has hosted training for 14 and outdoor pools Clubhouse and restaurant Olympic snowboard teams Conference rooms and newly accommodating golfers and Full-service resort with lodging, constructed pro shop, restaurant snowmobilers chalets and conference facilities and banquet center

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August 29, 2011 CRAIN’S DETROIT BUSINESS Page 11 Feds, for-profit colleges battle Party where the New funding regs affect community colleges too Red Wings play!

BY DUSTIN WALSH Attorneys general from Illinois, debt-to-income ratios and loan re- CRAIN’S DETROIT BUSINESS Florida, California and Indiana payment rates or lose federal aid: have joined the lawsuit. Ⅲ At least 35 percent of former The local satellites of at least Michigan has not been involved students are meeting payment two major for-profit college chains in the lawsuit and is not aware of deadlines. may face a crippling financial-aid any complaints against for-profits Ⅲ Loan payments cannot exceed hurdle in a national dispute over in the state, said Joy Yearout, 12 percent of estimated earnings. for-profit marketing tactics and deputy director of communica- Ⅲ Annual loan payments must loan repayment rates. tions for Michigan Attorney Gen- not exceed 30 percent of a student’s Two lawsuits have been filed in eral Bill Schuette. average income in the program’s the past month, pitting the U.S. Officials at South University field. government against for-profits a and the Art Institute of Michigan The tighter regulations stem few weeks before classes start. could not be reached for comment. from the high student loan default The U.S. Department of Justice The current complaint isn’t the rate at for-profit institutions — es- filed suit this month in U.S. District first time in recent months that timated at 15 percent in 2009, com- Court for the Western District of Penn- the government and for-profit col- pared with 7 percent at public col- Õ'LQQHU *DPH*URXS3DFNDJHV$YDLODEOH sylvania against Pittsburgh-based leges have feuded. leges, according to a Moody’s Õ%RRN\RXU3ULYDWH3DUW\DWÐ7KH-RHÑ Education Management Corp., which In June, the U.S. Department of Analytics report in July. Õ&RUSRUDWH 6RFLDO3ULYDWH,FH6NDWLQJ(YHQWV operates for-profit schools in 105 Education tightened regulations to The education department has locations including South University require for-profits to meet new said the regulations are designed to 313.471.3333 in Novi and the Art Institute of standards to continue receiving protect students from “exploitive” Michigan in Troy and Detroit. federal funding — which makes up programs in which for-profits re- The complaint alleges that the as much as 90 percent of revenue, cruit low-income students and have company participated in commis- according to government reports, them leverage as much federal and sion-based recruiting, making it and totaled $30 billion in 2010. state aid as possible for programs ineligible for $11 billion in state Effective next July, programs in low-earning fields. and federal aid it received from must meet at least one of three Rick Castellano, director of pub- July 2003 to June 2011. standards concerning students’ lic relations for the University of Experience the difference. Phoenix, which operates several campuses in Southeast Michigan, Now offering 1/4 share partnership opportunities in the following aircraft. said the rules are unfairly targeting for-profits. GULFSTREAM III, pictured • HAWKER 800 “Any measures should be ap- plied equally to all schools,” he said. “The final rule does not serve to protect all college students.” Castellano would not comment on whether the regulations would affect the University of Phoenix’s planned 20,000-square-foot space in the 1001 Woodward building in downtown Detroit. The regulations also apply to certificate-based programs at traditional community colleges. The education department estimates it will affect less than 1 percent of those programs. Jeanne Nicol, director of communications and community relations at Macomb Community College, said it’s unlikely that the new regulations would affect programs there. “Very few students look to feder- Call Geoff Sherman today, 1.248.568.0979 www.skywayavjets.com al loans for certificate programs,” she said. However, the college is concerned over the new records it must keep to comply with the regulations. The for-profit industry opposes the rules. In July, the Association of WIXOM Private Sector Colleges and Universities MICHIGAN filed suit in U.S. District Court for the District of Columbia in Washington I-96 at D.C. against the education depart- BECK RD ment to overturn the regulations. The department doesn’t have the authority to set the regulations without legislator involvement, Enterprise said Brian Moran, the association’s interim president and CEO. The Business Park group represents Education Man- agement, DeVry University, Everest In- stitute and other Michigan for-profit Great Image & Location RIGHT PRICE Join Industry schools. He said the regulations Leaders would eliminate one-third of for- From 4,000 to 28,000 Sq Ft RIGHT SIZE profit college students over the next Konica Minolta New Construction WILL FINISH TO SUIT 10 years, according to a third-party Business Solutions study funded by the association. Combine Office, Warehouse & Hi-Tech Henry Schein However, the education depart- Dental Centers ment thinks fewer than 5 percent Ground Monument & Building Signage of all programs will be affected, a Smith & Nephew spokesperson said. Grade Level Doors & Loading Docks Orthopedics The earliest a for-profit program could be eliminated is 2015, accord- For Leasing Information ... Call: ing to the amended rules. Dustin Walsh: (313) 446-6042,

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Page 12 CRAIN’S DETROIT BUSINESS August 29, 2011 Shelter beyond the storm Lighthouse aims to promote, measure client success

BY SHERRI WELCH that time, based on a nationally look at ways to not only help people CRAIN’S DETROIT BUSINESS recognized model developed by the while they are in crisis but to help Baltimore-based Annie E. Casey them ... get out of the safety net so Since its founding 39 years ago, Foundation of bundling services they are to a place where they are Lighthouse of Oakland County Inc. has aimed at financial stability. more self-sufficient.” made a name for itself in crisis re- United Way for Southeastern Michi- Data collection helps agencies sponse, providing food, utility assis- gan and Detroit Local Initiatives Sup- see what is and is not working, and tance and shelter to victims of do- port Corp. have provided the local helps individuals see progress in mestic violence. centers with about $100,000 annu- increasing their incomes and cred- But it’s only a matter of time be- ally each of the past three years to it scores and reducing debt. fore most of the people coming for launch the centers and a database United Way plans to make the emergency help face another crisis to measure the center’s impact on Center for Working Families soft- and come back. participants. ware available to a broader group “In a lot of cases ... we’ve gotten Lighthouse secured another of nonprofits providing financial today’s problem $125,000 from the federal Social In- coaching and management pro- solved, but we novation Fund through LISC this grams, beyond the seven with cen- haven’t put a lot past spring, enabling it to double ters, Ponepinto said. of time and en- the number of people served at the Results of the seven centers’ ergy into mak- center to about 300 each year. work show that net income in- ing sure “People in this region are stuck creased 19 percent for people par- (clients) are in the safety net,” reliant on emer- ticipating in all three of the cen- more resilient gency assistance, said Dona Syes ters’ program areas between 2008 when the next Ponepinto, vice president, commu- and 2010, according to a report is- crisis comes nity investments, basic needs and sued by United Way and LISC. along,” said Ziraldo financial stability impact areas at Sherri Welch: (313) 446-1694, President and United Way. “As a health and hu- [email protected]. Twitter: CEO John Ziraldo. man-service sector ... we need to @sherriwelch With a new, 10-year strategic plan in place, Pontiac-based Light- house is redoubling efforts to help clients become self-sufficient. Work smarter for your business. It’s seeking $750,000 in grant funding to develop a database to measure its impact by looking at clients’ incomes, credit scores, progress toward earning certification or degrees, and more. “If we don’t get the funding, we’re going to find another way to fund it, even if it means taking the dollars out of (unrestricted) re- serves,” which currently are about $800,000, Ziraldo said. “We’re moving past the point Your Bank’s where we think services in and of themselves change lives. ... We’re trying to help people create a long- term plan for self-sufficiency. And Not Lending? we’re lining up our efforts around that plan.” Size, comfort, value and versatility that drives your potential. As part of its new focus, Light- The 2011 Sprinter Van — exclusively at Mercedes Benz of Novi. Visit us today house is working to increase its to see the area’s largest Sprinter inventory. unrestricted funding to 75 percent of its budget from about 44 percent Mercedes Benz of Novi now, Ziraldo said. 39500 Grand River Ave. Novi, MI 48375 Lighthouse ended fiscal 2011 at Ph: 248-426-9600 (Sales & Service) the end of June with total revenue of www.mercedesbenzofnovi.com about $6.5 million and a surplus of about $200,000, he said. It’s operat- ing on a $6 million budget this year. The agency is moving away from narrow, categorical, restricted funding unless it’s aligned with what the agency is trying to do, Ziraldo said. Earlier this year, it discontinued a program to provide outreach and line up temporary shelter for home- ours are less people with mental health issues, walking away from about . $100,000 in annual funding from the Call for a free consultation. Oakland County Community Mental Loan amounts: $1,000,000.00 and above. Health Authority. “We weren’t (satisfied) it was s Investment Real Estate s Equipment helping the folks ... to achieve the s Owner Occupied Real Estate s Turnaround Consulting self-sufficiency that is our goal,” Ziraldo said. s Lines of Credit s Loan Modiﬁcations Lighthouse launched a Center s Accounts Receivable s Bank Workouts for Working Families in 2008 to help connect people to employment and training, financial coaching and income supports such as tax credits, and health and food assistance. Many people coming for its bundled programs were 800.509.3552 referred by Michigan Works agencies or word of mouth but weren’t www.eclipsecapitalgroup.com in true crisis, Ziraldo said. 2207 Orchard Lake Road, Sylvan Lake, MI 48320 “Since 1997” The center is one of seven across the region that were launched at 20110829-NEWS--0013-NAT-CCI-CD_-- 8/25/2011 4:23 PM Page 1

August 29, 2011 CRAIN’S DETROIT BUSINESS Page 13 Ash Stevens CALENDAR p.m. Sept. 8. Original Equipment $35; add $10 after Sept. 5. Contact: Neumann Smith Architects. AAA of- COMING EVENTS Suppliers Association. With Tim (734) 604-7820; email: buissal@ya- fice, Birmingham. Free, must regis- Asian Pacific American Chamber of Leuliette, managing director, Finnea hoo.com; website: www.crewde- ter online. Contact: (248) 486-3424; Commerce PM. 6-8 p.m. Sept. 8. Group LLC. The Henry hotel, Dear- troit.org. email: [email protected]; website: to expand DMC–Huron Valley-Sinai Hospital. born. OESA members and guests www.drc-usgbc.org. Meet the leadership of DMC. Skyline $375; after Aug. 31: $425. Contact: (248) Club, Southfield. APACC members 952-6401 ext. 246; email: “Green Seeds” Building Education $0-$10; nonmembers $20. Contact: [email protected]; website: Tour. 6-7:30 p.m. Sept. 8. Commercial Pre-Business Research. 9 a.m.-12:30 (248) 844-4100; email: www.oesa.org. Real Estate Committee of Detroit Re- p.m. Sept. 8. Oakland County Busi- in Riverview [email protected]; website: gional Chapter, U.S. Green Building ness Center, others. Oakland County www.apacc.net. Bring a Guest/Be a Guest and Mem- Council Detroit Regional Chapter. Executive Office Building, Waterford BY JAY GREENE ber Appreciation Event. 4-7 p.m. Sept. With David Anolick, project manager Township. Free, pre-registration re- CRAIN’S DETROIT BUSINESS Capital & Capacity: Funding Industry 8. Commercial Real Estate Women of real estate services, AAA, and quired. Contact: (248) 858-0783; web- Growth & Restructuring. 9:30 a.m.-6 Detroit. Tre Monti Restaurant, Troy. Stephen Lechman, project architect, site: www.oakgov.com. Ash Stevens Inc., a pharmaceutical ingredient manufacturer in Riverview, has signed a contract with Detroit-based Walbridge Aldinger Co. to build two new reactor bays in an $11 million project, INTELLECTUAL PROPERTY ATTORNEYS

said Ash Stevens CEO Stephen Munk.

The reactor bays process chemicals into They are not just “ drug ingredients. “patent lawyers, but After the bays are completed in spring 2013, our trusted advisors. Munk said the expansion could Munk “ JAMES SCAPA, CEO Altair Engineering position the Your operation is standing head and shoulders above all operators in oit area” – company to eventually double its the Detr Fortune 500 Safety Auditor 2010 sales of $23.4 million. Randy Abdallah, Walbridge’s se- Experience, Safety and Service you can Count on. nior vice president of business de- Locally Based. Serving All Detroit Area Airports Since 2003 YOUNG BASILE. Advisors to the world’s most innovative companies. velopment, said the company will start work in the next 30 days and be on hand through the lengthy ap- HANTZ AIR proval process with the U.S. Food ANN ARBOR • TROY • SILICON VALLEY and Drug Administration. ͹͵ͶǦͺͻ͵Ǧ͸͸ͳͳ WWW.YOUNGBASILE.COM Walbridge also is working on Ǥ Ǥ laboratory projects at the University of Michigan’s School of Public Health and Wayne State University. Munk said Ash Stevens will begin to hire another 12 workers in late 2012 as it slowly ramps up its two new reactor bays to full capacity in 2015. It currently has four reactor bays that mix the active ingredients for 11 drugs. The company, which employs 77, researches and manufactures the active ingredients for such drug makers as Genzyme Corp., Pharmion Corp. and Millennium You Deserve More Thought Per Square Foot Pharmaceuticals. Drugs include Clolar, a medication that treats children with refractory or re- lapsed acute lymphoblastic leukemia. Founded in 1962, privately held Ash Stevens was the first business to spin off from Wayne State Univer- sity’s chemistry department. Munk said Ash Stevens expects to add two or more drugs to its manufacturing operations in the next two or three years. “The drugs are in development, and we do not have our client’s permission to divulge any data about them,” Munk said. Earlier this year, Ash Stevens purchased six acres next to its Riverview facility for future expansion, Munk said. The company Real Estate Strategy now owns 10 acres, plus an 8,500- square-foot research facility with Tenant Representation six labs in Detroit. “Our (10-year plan) is to vacate Buyer Representation our Detroit site, consolidate in Riverview and substantially add to Project Feasibility our capacity,” Munk said. Good real estate deals are at lower lease rates; great ones are Construction Oversight From 2004 to 2009, Ash Stevens aligned to the needs of your organization. Let our experienced spent $15 million expanding its Riverview plant to 30,000 square real estate department for hire show you what to ask for. Incentives feet. Lease Administration Jay Greene: (313) 446-0325, pmcresa.com 248.223.3500 [email protected]. Twitter: @jay- bgreene 20110829-NEWS--0014-NAT-CCI-CD_-- 8/25/2011 3:30 PM Page 1

Page 14 CRAIN’S DETROIT BUSINESS August 29, 2011 CRAIN'S LIST: LARGEST ARCHITECTURAL CRAIN'S LIST: INFORMATION TECHNOLOGY FIRMS Ranked by 2010 revenue COMPANIES Ranked by 2010 revenue

Company Revenue Company Revenue Address ($000,000) Rank Address ($000,000) Phone; website Top local executive(s) 2010/2009 Phone; website 2010/2009 Rank Top local executive(s) Type of business SmithGroup Inc. Jeffrey Hausman $179.7 1. 500 Griswold, Suite 1700, Detroit 48226 Detroit office director $166.3 Compuware Corp. $928.9 Software and professional services (313) 983-3600; www.smithgroup.com Carl Roehling 1 Campus Martius, Detroit 48226 $892.2 president and CEO 1. (313) 227-7300; www.compuware.com Peter Karmanos Jr., executive chairman of the Ghafari Inc. Yousif B. Ghafari 87.5 board, and Bob Paul, CEO 2. 17101 Michigan Ave., Dearborn 48126 chairman 75.0 (313) 441-3000; www.ghafari.com TechTeam Global Inc. B 600.0 Information-technology outsourcing, 27335 W. 11 Mile Road, Southfield 48033 211.2 government technology services, IT 2. (800) 522-4451; www.techteam.com consulting and systems integration, Fishbeck, Thompson, Carr & Huber Inc. Michele Buckler 60.5 Gary Cotshott, president and CEO technical staffing and learning services 39255 Country Club Drive, Suite B-25, Farmington Hills senior environmental engineer 65.0 3. 48331 James Townley (248) 324-2090; www.ftch.com president Syntel Inc. 532.1 IT outsourcing, knowledge process 525 E. Big Beaver Road, Suite 300, Troy 419.0 outsourcing, industry-specific services, URS Corp. Ronald Henry 45.2 48083 application development and 4. 27777 Franklin Road, Suite 2000, Southfield 48034 vice president and managing 45.6 (248) 619-2800; www.syntelinc.com management, e-business services, (248) 204-5900; www.urscorp.com principal 3. Bharat Desai, chairman, and Prashant Ranade, architecture consulting and support, IT president and CEO infrastructure management, cloud computing, data warehousing and Harley Ellis Devereaux Corp. Gary Skog 36.9 business intelligence, application 5. 26913 Northwestern Highway, Suite 200, Southfield chairman and CEO 39.2 testing, migration solutions 48033 464.4 Information-technology systems (248) 262-1500; www.harleyellisdevereaux.com T-Systems North America Inc. 3499 W. Hamlin, Rochester Hills 48390 388.9 integration, Web application (248) 276-5800; www.t-systems.com development, network architecture, SSOE Group Lee Warnick 30.0 4. enterprise application and resource principal and vice president 38.0 Heike Auerbach, managing director, T-Systems 1050 Wilshire Drive, Suite 260, Troy 48084 North America, and Eric Verniaut, CEO management, collaborative product 6. (248) 643-6222; www.ssoe.com commerce, supply-chain management Vision Information Technologies 230.0 IT managed services, staffing and Albert Kahn family of companies Charles Robinson 22.2 Inc. (VisionIT) 101.0 vendor management 7430 Second Ave., Detroit 48202 president and CEO 34.0 3031 W. Grand Blvd., Suite 600, Detroit 7. (313) 202-7000; www.albertkahn.com 5. 48202 (877) 768-7222; www.visionit.com David Segura, CEO, and Christine Rice, Hobbs + Black Associates Inc. William Hobbs 15.6 president president, CEO and COO 17.6 100 N. State St., Ann Arbor 48104 205.0 Consulting and staff augmentation 8. (734) 663-4189; www.hobbs-black.com Strategic Staffing Solutions Inc. 645 Griswold St., Suite 2900, Detroit 48226 171.0 services, vendor management 6. (888) 738-3261; www.strategicstaff.com programs, executive search services, Cynthia Pasky, president and CEO call center technology and a domestic Rossetti Associates Inc. Matthew Rossetti 15.0 IT development center 2 Towne Square, Suite 200, Southfield 48076 president and CEO 13.0 9. (248) 262-8300; www.rossetti.com Altair Engineering Inc. 172.0 Global software and technology, 1820 E. Big Beaver Road, Troy 48083 139.0 engineering simulation, advanced Paul Stachowiak 14.7 7. (248) 614-2400; www.altair.com computing, enterprise analytics and Integrated Design Solutions LLC product development 1441 W. Long Lake Road, Suite 200, Troy 48098 president 15.5 James Scapa, chairman and CEO 10. (248) 823-2100; www.ids-troy.com CareTech Solutions Inc. 154.0 Information-technology and Web HKS Architects PC Steven Jacobson 14.0 901 Wilshire Drive, Suite 100, Troy 48084 153.3 products and services for more than senior vice president 10.0 8. (248) 823-0800; www.caretech.com 150 U.S. hospitals and health care 235 E. Main St., Suite 102C, Northville 48167 systems 11. (248) 347-7050; www.hksinc.com James Giordano, president and CEO

Quinn Evans Architects Inc. Larry Barr 13.4 Tata Technologies Ltd. 150.0 Product life-cycle management and 219 1/2 N. Main St., Ann Arbor 48104 president and CEO 15.3 41050 W. 11 Mile Road, Novi 48375-1302 134.4 product development IT services, 12. (734) 663-5888; www.quinnevans.com 9. (248) 426-1482; www.tatatechnologies.com proprietary software and knowledge- Warren Harris, president and COO, and management software systems Patrick McGoldrick, CEO SHW Group LLC Marjorie Simmons 11.8 2338 Coolidge, Suite 100, Berkley 48072 managing principal and 7.5 Acro Service Corp. 130.0 Staff augmentation (IT, engineering, 13. (248) 336-4700; www.shwgroup.com chairman 39209 Six Mile Road, Suite 250, Livonia 102.0 office support), outsourcing and IT and 10. 48152 engineering consulting (734) 591-1100; www.acrocorp.com TMP Architecture Inc. Tim Casai 9.8 Ron Shahani, president, chairman and CEO 14. 1191 W. Square Lake Road, Bloomfield Hills 48302 president 10.3 (248) 338-4561; www.tmp-architecture.com John Castellana HTC Global Services Inc. 113.0 Application development and chairman of the Board 3270 W. Big Beaver Road, Troy 48084 111.0 maintenance, business process 11. (248) 786-2500; www.htcinc.com management, document and content Kenneth Neumann/Joel Smith and Joel Smith 9.5 Madhava Reddy, president and CEO management and PMO services 15. Associates Inc. president 8.5 400 Galleria Officentre, Suite 555, Southfield 48034 (248) 352-8310; www.neumannsmith.com Urban Science Inc. 105.0 Global retail marketing consulting 200 Renaissance Center, Suite 1800, Detroit 84.5 Gensler Architecture, Planning and Design William Hartman 8.6 12. 48243 16. PC principal and managing director 4.7 (313) 259-9900; www.urbanscience.com 1 Woodward Ave., Suite 601, Detroit 48226 James Anderson, president and CEO (313) 965-1600; www.gensler.com Diversified Computer Supplies Inc. 89.2 Distributor of imaging/printer supplies Hamilton Anderson Associates Inc. Rainy Hamilton Jr. 8.5 4435 Concourse Drive, Ann Arbor 48108 78.5 17. 1435 Randolph, Suite 200, Detroit 48226 president 9.6 13. (800) 766-5400; www.dcsbiz.com (313) 964-0270; www.hamilton-anderson.com Joseph Hollenshead, chairman, president and CEO

French Associates Inc. Dale Jerome 3.8 C 59.2 Managed services, data center, president 8.4 Netarx Inc. 1600 Parkdale Road, Rochester 48307 3252 University Drive, Suite 200, Auburn Hills 36.8 collaboration and infrastructure design 18. (248) 656-1377; www.frenchaia.com Paul Corneliussen executive vice president 14. 48326 (877) 963-8279; www.netarx.com Sandy Kronenberg and D. Duane Tursi, Fusco, Shaffer & Pappas Inc. James Pappas 2.8 principals 30800 Northwestern Highway, Suite 100, Farmington president 2.3 19. Hills 48334 Lowry Computer Products Inc. 40.0 Systems integration, mobile data (248) 932-8300; www.fuscoshafferpappas.com 9420 Maltby Road, Brighton 48116 34.0 collection, and bar code, RFID and 15. (810) 229-7200; www.lowrycomputer.com wireless services Kraemer Design Group PLC Robert Kraemer and Maureen 2.0 Michael Lowry, president and CEO 1420 Broadway, Detroit 48226 Kraemer 1.0 20. (313) 965-3399; www.thekraemeredge.com principals This list of leading Detroit-area computer companies is an approximate compilation of the leading such companies that research, design, manufacture or invent equipment or software, plus companies that provide sophisticated computer This list of leading architectural firms is an approximate compilation of the largest such firms in Wayne, Oakland, services such as systems design, programming and information retrieval. It is not a complete listing but the most Macomb, Washtenaw and Livingston counties. It is not a complete listing but the most comprehensive available. Firms comprehensive available and covers Wayne, Oakland, Macomb, Washtenaw and Livingston counties. Companies based with headquarters in the Detroit area are listed with their total gross revenue, and firms with headquarters outside the elsewhere are ranked by their revenue in the five-county area and not by total revenue. Unless noted, the companies area are listed by gross revenue of their local operations only. Information was provided by the companies. NA = Not provided the information. NA = not available. available. NC = No change. B TechTeam Global Inc. was acquired by Brazil-based Stefanini International Holdings Ltd. on Dec. 13, 2010. It will LIST RESEARCHED BY BRIANNA REILLY operate as a wholly owned subsidiary of privately held Stefanini. C Netarx was acquired by Logicalis Group Ltd. on July 1, 2011. LIST RESEARCHED BY BRIANNA REILLY 20110829-NEWS--0015-NAT-CCI-CD_-- 8/25/2011 3:28 PM Page 1

August 29, 2011 CRAIN’S DETROIT BUSINESS Page 15

PEOPLE HEALTH CARE IN THE SPOTLIGHT Jon Fitzgerald to The Ann Arbor-based Michigan senior vice president for philan- Venture Capital Association has thropy, Henry Ford named Merrill Guerra executive Health System, De- director. troit, from presi- Guerra, 40, dent, Nationwide founded and Children’s Hospi- had been CEO tal Foundation, of Ypsilanti- Columbus, Ohio. based clothing Also, Sharon Mil- company berger to director RealKidz Inc. Milberger of the center for health promotion She replaces and disease pre- LeAnn Auer, vention, from in- YOUR BUSINESS who is joining terim director; and Guerra the Treasury Bethany Thayer to group of Ford director of well- Motor Co. in Dearborn. ness programs and Guerra earned a bachelor’s degree strategies, from FUTURE IS BUILT in political science from Stanford manager of well- University in Palo Alto, Calif., and ness programs and an MBA from the University of strategies. Michigan. Thayer INFORMATION ON BORROWING ENGINEERING TECHNOLOGY Trevor Wagenmaker to mid-Michigan Margaret Churchill to vice president of process manager, Hubbell Roth & project management office, Creative Clark Inc., Bloomfield Hills, from pro- Breakthroughs Inc., Troy, from project management consultant, Savian DECISIONS YOU ject manager, Prein & Newhof, Grand Rapids. LLC, Colorado Springs, Colo. John Smith III to program manager of GAMING modeling, simulation and visualiza- Tasha Squires to sales manager, MGM tion, Rave Computer Association Inc., MAKE RIGHT Grand Detroit LLC, from director of Sterling Heights, from battle lab man- group sales, Westin Detroit Metropoli- ager, General Dynamics Land Sys- tan Airport, Detroit. tems, Sterling Heights. ABOUT…NOW. CAREER CALENDAR Attention, entrepreneurs email [email protected] or go to www.scoredetroit.org. The Service Corps of Retired Exec- utives Detroit hosts “Should I Start Coffee and connections My Own Business?” from 8:45 a.m.- As a business owner, you face tough decisions every day. noon Sept. 7. Cost is $10. SCORE Ann Arbor Spark hosts Ann Arbor Detroit also hosts “Planning Your Open Coffee from 8-9:30 a.m. Sept. 13 Like deciding if and when you should borrow. A Huntington Own Business” from 8:45 a.m.- at Spark Central, 330 E. Liberty, 12:30 p.m. Sept. 14. Cost is $45. Par- Ann Arbor. The free networking Business Banker can help. ticipants can learn to do the re- event is for entrepreneurs, in- search and planning required to vestors and those who work with start a successful business. Both innovation businesses, particularly programs are at the Dearborn in information technology, clean Now is the time to reach out. At Huntington Business Chamber of Commerce, 22100 tech and life sciences. Call (734) 761- Michigan Ave. Call (313) 226-7947, 9317 or go to www.annarborusa.org. Banking, we take the time to understand your speciﬁ c business needs and help you make borrowing decisions that are right for you. In 2010, we committed to lending $4 billion to local businesses over a three-year period, so if you decide you’re ready, we’ll be there to support you every step of the way. It’s what you’d expect from the #1 SBA lender.1

To learn more or speak with a Business Banker, stop by your local Huntington branch, visit huntington.com/borrow or call 1-866-808-8913.

1Huntington is the #1 SBA 7(a) lender in the region made up of Indiana, Kentucky, Ohio, Michigan, West Virginia and Western PA. Source: U.S. SBA from October 1, 2007, through June 30, 2011. Member FDIC. B® and Huntington® are federally registered service marks of Huntington Bancshares Incorporated. Huntington.® Welcome.TM is a service mark of Huntington Bancshares Incorporated. ©2011 Huntington Bancshares Incorporated. 20110829-NEWS--0016-NAT-CCI-CD_-- 8/25/2011 4:16 PM Page 1

Page 16 CRAIN’S DETROIT BUSINESS August 29, 2011

BUSINESS DIARY CONTRACTS market Collision Parts Distributor ganizations, opened at 24100 South- Dynamic Business Solutions Inc., dba Certification Program, a program to field Road, Suite 320H, Southfield. Qualitech, Bingham Farms, a technol- certify distributors who sell automo- Telephone: (248) 281-1386. Website: ogy integrator and software reseller, tive aftermarket collision parts. Tele- www.bigtentjobs.com. phone: (630) 379-9661. Website: was selected by Bluerock Capital Mar- Nest to Nest LLC, a home consignment nsfautomotive.com. kets LLC, Newport Beach, Calif., a bro- shop, at 154 Mary Alexander Court, ker/dealer, to install a computer net- The Grosse Pointe Athletic Club, Northville. Telephone: (248) 773-7591. work and telephone system. Grosse Pointe, launched a new web- Website: www.nesttonestconsign- site: www.thegpac.org. Parks Productions Ltd., Orion Town- ment.com. ship, a marketing and advertising H. Joel Newman PLLC, a law firm that agency, received a contract with Oak- STARTUPS specializes in complex litigation and land County Parks and Recreation, Lace Bridal Inc., dba Lace Bridal Bou- trials. Newman was a founding mem- Waterford Township, to provide con- tique, a wedding accessory and invita- ber and shareholder of Hyman Lippitt tractual services, entertainment and tion store, at 1885 E. Big Beaver Road, PC and will remain in the former Hy- logistics support. Troy. Telephone: (248) 740-5500. man Lippitt office suite at 322 N. Old NoviXus LLC, Novi, signed a contract Big Tent Jobs LLC, a recruiting agency Woodward, Birmingham. with Madison, Wis.-based Navitus that places people with disabilities in Telephone: (248) 723-1238. Website: Health Solutions LLC, to fill mail-order positions at leading companies and or- hjoelnewman.com. prescriptions. The Pogoda Cos. Inc., Farmington Hills, a self-storage and manufactured housing company, hired Creative Stor- age Marketing LLC, Farmington Hills, to expand its online and social media presence. Colombo Sales & Engineering Inc., Fern- dale, and its Colombo Pneumatic Tubes Systems, have contracted Creative Ser- vices Co. Madison Heights, a marketing and promotions firm, for a business-to- business video marketing tool. EXPANSIONS Mycroft Inc., New York, N.Y., a provider of IT identity and security FOR LEASE services, opened an office at 3000 CRYSTAL GLEN Town Center, Suite 450, Southfield. 39555 ORCHARD HILL PLACE Telephone (248) 809-3504. Website: NOVI, MI www.mycroftinc.com. Dickey’s Barbecue Restaurants Inc., Dallas, Texas, opened a Dickey’s Bar- becue Pit, a quick-serve barbecue restaurant, at 3672 Rochester Road, Troy. Telephone: (248) 250-9263. Web- site: www.dickeys.com. BorgWarner Inc., Auburn Hills, an automotive supplier, will build a new, larger production facility and engineering center in Itatiba City, Brazil. Website: www.borgwarner.com. Enercon Services Inc., Tulsa, Okla., an engineering, environmental, technical and management services firm, opened an office at 310 N. Main St., Suite 202, Chelsea. » Beautifully Finished Suites FOR MORE INFORMATION PLEASE CONTACT: From 667 - 15,360 SqFt DAN VERDERBAR NEW PRODUCTS MARKET REAL » Upgrade Your Image, Without [email protected] Fisher Unitech Inc., Troy, an informa- Increasing Your Costs tion-technology company, is now of- » PLACE ESTATE Highly Visible, Easy to Locate, fering the new Fortus 250mc Produc- Professional Class A Ofﬁ ce Space 248.324.2000 tion 3D Printer from Stratasys Inc., » Amenities Include: Café, Hair Salon, WWW.FRIEDMANREALESTATE.COM Eden Prairie, Minn. Website: ANNOUNCEMENTS & COMMERCIAL PROPERTIES Tenant Conference Facility, Full www.funtech.com. SERVICES Service On-Site Management ofﬁ ce eCODE 160 MOBILE HOME PARK -- MONROE COUNTY NEW SERVICES TOP CONDITION INFORMATION IS SUBJECT TO VERIFICATION AND NO LIABILITY FOR ERRORS OR OMISSIONS IS ASSUMED. WE HAVE NO REASON TO DOUBT ITS ACCURACY, BUT WE DO NOT GUARANTEE IT. DELIVERY SERVICES (22) lots plus single fam rental home/laundry , Detroit, an online Quicken Loans Inc. bldg/paved roads. Good overhead lighting/all good home loan lender, launched MyQL Mo- Local Trucking/Warehousing tenants. CASH FLOW $60,829 net after expenses bile, a mobile application that enables 1 Pallet - Truck Loads prior to debt ser. Owner of 32 yrs. retiring. $650,000 Same Day - Next Day clients to apply for a home loan from “Where You Get Your Buck$ Worth” less $150,000 Dn on L.C. or DISCOUNT FOR CASH Canadian Consolidations their iPhone, iPod Touch or iPad. Web- OUT by owner. 734-673-7780 cell or 734-675-8911. site: www.quickenloans.com. Storage Trailers Trailer Parking Mango Languages, Farmington Hills, www.mrtransportation.com APARTMENT BUILDINGS released an iPhone application for [email protected] Double-Dip or Not? mobile access to its language learning 734-946-7031 programs. Website: www.mango Apartment Mgmt Specialists Finding your way in languages.com. We deliver results for Owners tough economic times GreenPath Inc., Farmington Hills, a REAL nationwide nonprofit financial orga- www.silversidemanagement.com nization, will provide a free and a pre- Webcast Event mium credit counseling phone service ESTATE 248-246-7203 to help community banks meet regula- Thursday, tions set by the 2010 Credit Card Ac- September 8, 2011 countability, Responsibility, and Dis- INDUSTRIAL PROPERTY Noon to 1:30 p.m. EDT closure Act. Website: www. greenpath.com. AVAILABLE NOW RSVP: Call 1.800.847.6424 or NSF International, Ann Arbor, visit www.mcdonaldhopkins.com launched the NSF Automotive After- 4,000 to 100,000 sq. ft. A timely analysis and Also 10,000 & 25,000 sq. ft. CallCall DIARY GUIDELINES discussion based on the Free Standing Bldgs w/truckwells. latest economic Send news releases for Business developments in the Diary to Departments, Crain’s 1 Mile from Metro Airport y U.S. and international y Detroit Business, 1155 Gratiot markets. Ave., Detroit, MI 48207-2997 or REA CONSTRUCTION send e-mail to cdbdepartments@ odaoda McDonald Hopkins PLC t (734) 946-8730 t crain.com. Use any Business Diary 39533 Woodward Avenue, Suite 318, Bloomfield Hills, MI 48304 • 248.646.5070 item as a model for your release, Carl J. Grassi Stephen M. Gross and look for the appropriate Also Heavy Industrial President Detroit Managing Member category. Without complete Land Available for a custom advertising information, your item will not run. Chicago • Cleveland • Columbus • Detroit • Miami • West Palm Beach Photos are welcome, but we cannot www.reaconstruction.net program • 313.446.6068 www.mcdonaldhopkins.com guarantee they will be used. 20110829-NEWS--0017-NAT-CCI-CD_-- 8/26/2011 4:54 PM Page 1

August 29, 2011 CRAIN’S DETROIT BUSINESS Page 17 RiverWalk backers step up fundraising for final stretch

BY SHERRI WELCH son said. supporting the project, Nelson everything it can to raise money, more than 400 people and netted CRAIN’S DETROIT BUSINESS The conservancy has raised $105 said, “but it’s always very chal- he said. “But it takes time to build $80,000-$90,000, Nelson said. million of its $140 million target lenging any time when you’re try- a constituency … to create sustain- “For our first year out of the The Detroit Riverfront Conservancy for the project. The money will ing to raise these kinds of dollars.” able ongoing fundraising.” box, that was a pretty good num- is renewing its push to raise the fund construction and an endow- There is no such thing as a shoo- The majority of dollars raised so ber. Over time, we look to triple last $35 million it needs to comment of $50 million to $60 million in for funding anymore, said local far for the east RiverWalk have that number as the event grows in plete the east RiverWalk. for maintenance and operations. fundraising consultant Peter Rem- come from the private sector, Nel- awareness and popularity.” It plans to begin construction It secured about $3 million of ington, who worked with the con- son said, but the hope is to attract a While completing initial plans this spring on parts of the river- that the past couple of years, with servancy early on. larger share of public sector money. for the 5.5-mile span of RiverWalk front east of the William G. Mil- the most recent large gift of $1 mil- “There’s so much competition Nelson said she expects the from the Ambassador Bridge to liken State Park and Harbor that lion coming from the Fred A. and for the dollar” as demand spikes, “Shimmer on the River” gala to just east of the MacArthur Bridge haven’t been developed, said Pres- Barbara M. Erb Family Foundation in he said. bring in a growing amount of indi- to Belle Isle is the conservancy’s ident Faye Alexander Nelson. December 2009. In addition, corporate giving is vidual donations to provide funds first priority, there has been con- Those parcels will include Mt. The conservancy used much of down and stock market volatility for operation and maintenance. versation about extending the Elliott Park and the downturn to cultivate relation- is affecting individual and founda- The second annual event, which RiverWalk as far east as Alter its shoreline, ships with prospective donors and tion giving. features live music and a strolling Road on the border of Grosse land to the east funders, while planning construc- With its past brick paver cam- dinner, takes place this year on Pointe, Nelson said. and west of Ch- tion of the remaining portions of paign, past corporate and individ- Sept. 8 at the GM Plaza on the river Sherri Welch: (313) 446-1694, ene Park, the the RiverWalk, Nelson said. ual push and annual gala, the side of the Renaissance Center. [email protected]. Twitter: @sher- former site of It’s not hard to make a case for Riverfront Conservancy is doing Last year’s inaugural gala drew riwelch the Uniroyal Tire Co. factory, and areas that will make way for a parking lot and Nelson path to Gabriel CAREER MOVES Richard Park. The Mannik & Smith Group Inc., ADVERTISING/MARKETING ADVERTISING/MARKETING which is based in Maumee, Ohio, and has offices in Detroit, Canton Township and Monroe, is serving MARKETING DIRECTOR DIRECTOR, ONLINE & E-COMMERCE STRATEGY CRAIN’S DETROIT BUSINESS as architect. The request for pro- —Detroit’s leading weekly business publication for upper-level executives Crain’s Detroit Business and business owners. Coverage: industry rankings, auto supplier news, non-auto manufacturing, health is Southeast Michigan’s leading business publication. It’s required reading for posals from construction firms care, commercial and industrial real estate, technology, small business, finance and "executive life" the business elite, with news-you-can’t-get-anywhere-else for entrepreneurs in startups as well as people leading or managing second-stage companies and large public and privately held companies. should go out in early October, Nel- issues. Crain’s Detroit Business’Web site was awarded first-place honors in 2011 as best business newspaper site by the Alliance of Area Business Publications. Our Director of Online & E-Commerce Strategy will be charged with maximizing the revenue potential of Crain’s Consider joining the premier source of business news in Southeast Michigan, Crain’s Detroit Business. existing online businesses – its award-winning Web site and e-newsletters as well as its data, We are searching for a Marketing Director to lead the integrated marketing efforts of the leading business video and interactive offerings. The Director will work with the sales, marketing and editorial teams to publication in metro Detroit. create new digital products and opportunities – including online programs and events, mobile platforms and other digital products. Our Marketing Director must be a creative/strategic thinker who can lead a four-person team to capitalize Provide oversight & strategic direction for: on the power of the Crain’s Detroit Business brand. But the ideal candidate will also be hands-on, with superior writing and computer-tool skills, to create marketing materials in-house. • Manage the Crain’s Detroit Business website and digital products, with the aims of building brand Assisted living identity; boosting traffic, viewer loyalty and sales; and creating a must view site that is user friendly and Job Responsibilities: technically up-to-date • Develop marketing strategy, goals and measurement for Crain’s Detroit Business. • Development, branding & monetization of the CDB’s website and digital products • Advertising sales promotion for Crain’s Detroit Business and its growing portfolio of online and special • Enhancement of online event registration system. event products; • Branding & design of the various e-newsletters. homes on tap • Conceptualize and execute print, direct-mail and online campaigns to support advertising, events and • Creation of a brand-wide social media strategy. audience development. • Development of appropriate micro sites • Devise long-term strategic planning that combines integrated marketing platforms: print, online and • The launch & execution of webinars, podcasts, slide shows, new video products, etc BY JAY GREENE events. • Creating/managing Webinars and virtual events CRAIN’S DETROIT BUSINESS • Participate as the key marketing voice on the senior management team. • Speaker management for online and physical events • Direct and manage brand development, PR, sponsorships, vendor relationships and research. • Designing pricing strategies for online products Blue Sky Senior Living, a Dear- • Supervise the work of the Events team on Crain-branded events. • Creating/developing promotion plans for Crain’s online products Job Requirements: • Providing the key online strategy voice on the senior management team born-based assisted living facility • Liaison to clients for maximizing their use of Crain’s online assets • 10 years experience in marketing or related field. startup, is set to open the first of 20 • Strong writing, project management and organizational skills. Liaise & collaborate with: homes in Southfield next month, • Experience in creating marketing campaigns using digital and online platforms. • External vendors and internal business partners to ensure project completion. said Managing Director Nathan • Passion for advertising, marketing and the media business. • The editorial dept. to execute web-only features (e.g. slide shows, interactive graphics) • A proven track record of brand building that generates revenue. • The marketing department to help build the brand and implement social media tools. Mazur. • Team-oriented attitude and an ability to work across departments. • Coordinate with the audience development dept. to address user and subscriber needs. By the end of this year, Mazur, • Knowledge of emerging New Media strategies. • Work with the sales director to develop robust web offerings for advertisers. • A bachelor’s degree in marketing, communications, advertising or related field. • Possibly assist with video and audio editing. 30, said he plans to open two more homes – a second in Southfield and Crain Communications Inc is one of the largest privately-owned business publishers in the U.S. with over Job Requirements: 30 leading business, trade and consumer titles in North America and Europe. As an authoritative source of another in Bloomfield Hills – and • 5 years experience in marketing or related field minimum of 3 years experience managing and executing vital news and information to industry leaders and consumers worldwide, each of the company’s online projects, including strategic planning, process development and digital marketing the other 17 by the end of next year. newspapers, magazines and electronic news sites have become required reading in their respective • Proficiency with and development experience with software such as HTML, Javascript, CSS, Adobe The cost to buy and renovate the sector of business and consumer market. Providing unmatched value and award-winning editorial Premier, etc., is required. excellence, the company is respected for its dependable journalism which readers have relied upon for • A solid understanding of web design and development tools to convey to clients, and internal partners. homes for handicap access will av- over 90 years. • Knowledge of Adobe design skills such as Flash, Dreamweaver is preferred. erage about $200,000 and be fi- Crain Communications offers a competitive salary, a generous benefits package, profit sharing, and a • Passion for advertising, marketing and the media business friendly work environment. This is a great time to join our organization -- a profitable, well established • Knowledge of email marketing best practices nanced by private investors. publishing leader. • Knowledge of SEO “We purchased our first home, a To apply for this position please visit our website at www.crain.com and search under the • Strong writing, project management and organizational skills 2,800-square-foot ranch ... and are employment section. • A bachelor’s degree in marketing, communications, advertising or a related field To apply for this position please visit our website at www.crain.com and search under the in the final stages of rehab,” he We thank you for your interest in Crain Communications and invite you to visit our website as positions are “Careers” section, “Latest Positions”, then click on Detroit and search by location. updated regularly. Crain Communications is an Equal Opportunity Employer. said. We thank you for your interest in Crain Communications and invite you to visit our website as positions are He expects to hire about 120 em- updated regularly. Crain Communications is an Equal Opportunity Employer. ployees to provide 24-hour staff to MANAGEMENT the homes, approximately six per home. Health Care Manager Senior Assembly Process Engineer, Vehma There are about 141 licensed as- International of America, Inc., Troy, MI Develop Don’t Take Our Responsible for leading Physician Group Incentive assembly line processes for program quotations, sisted living homes in Wayne, Program Field Team. Travel is required. including reviewing & critiquing other assembly line Oakland and Macomb counties un- Responsible for researching, planning, directing & processes, addressing product design issues for Word For It implementing corporate programs/initiatives manufacturability, estimating & quoting costs der the small-group adult foster dedicated to health care value. RN preferred. associated with new lean assembly lines, care program. knowledge of PCMH, ACOs & OSCs. Experience in supporting the launch of new manufacturing Quality Improvmt prgms. Knowledge of operations, & ensuring the proper quotation & "We have gotten genuine interest on each However, Elizabeth Thomas, di- NCQA/URAC & HEDIS. Bachelor’s Degree in award of new business. Visit www.cosma.com for rector of communications with the Business Administration, Economics, Health Care, complete duties. Requirements: Bachelor degree ad placed which has led to several good Michigan Center for Assisted Living in Information Systems, Statistics or other related field in Mechanical Engineering; 5 years experience in is required. Master’s Degree preferred. 7 to 10 yrs a manufacturing engineering position with auto leads and we just closed on a nice deal. Lansing, said not all adult homes related experience. OEM or Tier-1 chassis supplier. Experience in are required to be licensed. each of the following: assembly processing for To apply please visit mibluetalent.com (posting truck frames, passenger car cradles, twist axles & We are very glad to have Crain's to help In Michigan, an assisted living HEA0005Z). Inquiries can be directed to control arms, including tooling design, engineering facility must be licensed if it pro- [email protected]. drawings, plant layouts, & customer proposals; us get our listings out and we rely on your costing analyses for assembly processing on vides direct patient care. If it con- global scale, including estimating product costs & expertise and efficiency in helping with tracts with a vendor for those ser- impact of changes on costing structures across multiple prod sites; Mig welding; developing timing this. We would recommend Crain's to vices, it doesn’t need a license. Advertise your & costing macros with MS Excel; developing While Medicare will pay for re- facility assembly process plans with AutoCAD, Products and Services including plant layouts, internal materials flow, anyone trying to get a message out in the habilitation services, Mazur said man-machine interfaces & space requirements; monthly prices for a private room conceptual product engineering & design, business world." will be $5,000 for all services, in- in including resolving manufacturability issues. Experience can be acquired concurrently. Mail — Bill & Nancy Thomas, cluding food, laundry and personal Crain’s Detroit Business resumes to Lindsay West, HR, Vehma services. Semi-private rooms will International of America, Inc., 1807 E. Maple Archie Thomas Real Estate cost $4,000 per month, he said. Road, Troy, MI 48083. EOE. 20110829-NEWS--0018-NAT-CCI-CD_-- 8/26/2011 3:43 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS August 29, 2011 Suppliers to benefit as safety prices fall

BY DAVID SEDGWICK avoidance system that can hit the CRAIN NEWS SERVICE brakes automatically. We believe safety Motorists will feel confident in The cost of collision-avoidance “ the technology only if they are cer- systems that use radar and cam- has to be affordable tain it will not misread oncoming eras to prevent crashes soon will traffic and needlessly slam on the be cheap enough for the mass mar- for all. brakes. One way to do that is by ket — and that’s good news for the ” combining radar with cameras. suppliers developing the systems. Samir Salman, Continental AG Radar is good at measuring exact- Suppliers say the retail price of ly how far away an object is from a next-generation collision-avoid- system, then add features, such as the car. Cameras are good at deter- ance system soon could fall to $500 adjustable headlights and sign mining exactly what an object is — or so as the cost of sensors de- recognition software, without a bridge abutment or truck, for ex- clines, a price that suppliers and big expenditure on hardware. ample — and whether it’s actually others agree is affordable as an op- The European Focus is a case in in your lane. tion for most car shoppers. point. In addition to Active City Volvo and Lexus have intro- Collision-avoidance systems use Stop, the car features a lane-depar- duced camera-and-radar units. radar, infrared laser sensors or ture warning system that uses a “It might not eliminate all acci- cameras to spot obstacles in the video camera to monitor lane dents, but it reduces” the severity road ahead and warn drivers. markings. If the vehicle wanders of the collision, said Mike Thoeny, Some systems will automatically into another lane, the system vi- Delphi Automotive LLP’s global engi- hit the brakes if the motorist fails brates the wheel to warn the mo- neering director for electronics to respond. torist. and safety. “Less speed means less Lidar, an infrared laser sensor, Samir Salman, CEO of Conti- force and less injury.” is used for obstacle detection at nental’s North American opera- To avoid low-speed accidents, low speeds, while more expensive tions, said the next generation of Volvo rolled out a Continental-de- radar units are used for highway radar units and cameras will cost signed laser system in 2009 that is speeds. To improve reliability at automakers about $100 to $120 similar to the newly introduced higher speeds, some automakers apiece. unit in the European Ford Focus. combine radar with cameras. If so, an automaker could expect For high speeds, Volvo uses Collision-avoidance technology to order a reasonably sophisticat- Troy-based Delphi Automotive’s entered the mass market in April, ed camera-and-radar unit for a radar-and-camera combination for when Ford Motor Co.’s Active City couple of hundred dollars. In turn, its adaptive cruise control. Stop system debuted on the Euro- that would draw retail prices down Toyota Motor Corp. was an early pean Ford Focus. toward the magic $500 mark. adopter of a camera-and-radar sys- Active City Stop is part of an op- Salman said Continental — tem in 2004, when it introduced a tions package that retails for which engineered Ford’s Active Denso-designed unit in Japan. $1,200. City Stop system — is aiming at In 2006, the automaker rolled out The system uses a lidar unit in the mass market. an upgraded version in the Lexus the windshield to scan the road 25 “We don’t sell safety for privi- LS. feet ahead of the car. If it spots an leged people,” Salman said. “We The new system, called Ad- obstacle, it warns the motorist. If believe safety has to be affordable vanced Pre-Collision System, fea- the driver fails to take action, the for all.” tured a stereo camera in the wind- car brakes automatically. The sys- While technology pricing is gen- shield plus radar sensitive enough tem works at speeds below 20 mph. erally a closely held secret among to detect pedestrians. Continental AG, the Germany- automakers, Andy Whydell, senior The Denso-designed unit relies based company with its North manager of product planning at on radar to detect an object, while American headquarters in TRW Global Electronics, part of the camera and its computer chip Auburn Hills, designed Ford’s sys- Livonia-based TRW Automotive Inc. identify what the object is. tem and a similar unit used by Vol- confirmed the trend. Consumers will quickly embrace vo Car Corp. “We are aiming for a midrange the technology if the National High- For higher speeds, automakers radar that an automaker could sell way Traffic Safety Administration prefer radar, which is not affected in the showroom for $500 or less,” starts awarding safety stars to vehi- by rain or snow. Whydell said. cles equipped with collision avoid- While radar is more costly than “And if we look 10 years out,” he ance, said Doug Patton, Denso’s se- lidar, prices are falling rapidly. said, “every car will have a lane- nior vice president of engineering. Moreover, Continental and other departure system with a forward- “We anticipate it will happen,” suppliers are cutting costs by de- looking camera.” Patton said. “Even if it’s just a signing modular systems. But first, automakers have to safety star, that affects whether That allows automakers to start figure out whether motorists will people want it.” with a basic collision-avoidance feel comfortable with a collision- From Automotive News Online-recruiting startup raises $3M from investors

BY DANIEL DUGGAN lion. CRAIN’S DETROIT BUSINESS Hired My Way also plans to We’re hiring, move into the Gilbert-owned Madi- A Birmingham-based job recruit- “ son Theatre Building in Detroit ing website company has raised $3 spending money on once the build-out is completed, Consultative million in startup funds from local taking a small amount of office Professional life insurance counseling business groups, including Dan marketing, spending space for six to eight people, to be in a non-salesy environment Gilbert’s Detroit Venture Partners. at 15 people by middle of next year. The company, Hired My Way LLC, money on The other seven companies funded is using the money to operate its by the Detroit Venture Partners We work with our clients and their advisors to: website, hiredmyway.com, a job- infrastructure. will also take space in the building. posting site in which employers ” Hired My Way charges any- Reduce estate and income tax Enhance fixed income pay a fee after they make a hire. Matt Mosher, Hired My Way LLC where from $500 to $12,000 for each yields Solve family and business issues Improve “As a startup, we have a lot of hire, which Mosher said comes in existing life insurance policies. costs to deal with,” said Matt Mosh- baum, president and CEO of Troy- below the 20 percent to 30 percent er, co-founder and CEO. “We’re hir- based Berloni America; and his fa- of first-year salary charged by a ing, spending money on marketing, ther, Irving Nusbaum, former traditional recruiter. spending money on infrastructure.” owner of New York Carpet World. He couldn’t give current rev- The company was established a Rounding out the group of in- enue, but said the target of being year ago, but the website launched vestors is Detroit Venture Part- break-even would mean annual just three months ago. ners, backed by Gilbert, Josh revenue of $1 million. He expects In the past six months, they Linkner, Brian Hermelin and to achieve that by February. BIRMINGHAM, MICHIGAN 248.731.9500 raised funds from Don Foss, chair- Earvin ‘Magic’ Johnson. Daniel Duggan: (313) 446-0414, man of Southfield-based Credit Ac- Mosher could not break out the [email protected]. Twitter: WWW.SCHECHTERWEALTH.COM ceptance Corp, as well as Rob Nus- specific investments in the $3 mil- @d_duggan 20110829-NEWS--0019-NAT-CCI-CD_-- 8/26/2011 5:02 PM Page 1

August 29, 2011 CRAIN’S DETROIT BUSINESS Page 19 Valassis: New CEO steers coupon firm toward digital future ■ From Page 3 vale, Calif.-based Yahoo Inc. to access In an Aug. 23 note, BMO Capital Mason expects News America to the search engine giant’s online ad- Markets Equity Research Group ana- remain a fierce competitor. vertising capabilities for local ad- I don’t know that the dragon (News lyst Dan Salmon wrote that “I don’t know that the dragon vertisers. “ Schultz’s retirement and Mason has been slain. We got our pound Print-at-home coupons and non- America) has been slain. We got our pound being named his replacement of flesh from the dragon,” he said. paper digital discounts such as fre- came as no surprise — and that Schultz also orchestrated the quent-shopper cards are still an of flesh from the dragon. neither move is expected to have $1.2 billion deal in March 2007 to emerging industry that has room ” an impact on the financial world’s buy the Connecticut-based direct Rob Mason, Valassis Communications Inc. for companies to catch up because view of the company. mailer Advo Inc. The move initially the technologies are still in a devel- of the consideration,” he said. and 52-week high of $37.44. “Like Schultz, Mason is a Michi- was met with skepticism by Wall opment race, said John Morgan, “Today, you have to look at poten- “Volatility is something we gan native with a long tenure at Street, which drove down Valas- executive director of the Drexel tial acquisitions in the digital don’t have a tremendous amount Valassis and we expect no materi- sis’ share price. Hill, Pa.-based Association Of area because of current valua- of control over,” Mason said. al change to strategy. His back- However, Schultz was vindicat- Coupon Professionals trade group. tions.” “Short-term volatility is some- ground is a bit more sales-driven ed; the deal basically doubled Valas- There is no industry-wide stan- Valassis has about 7,000 employ- thing I don’t believe is an accurate than Schultz, but we also don’t ex- sis’ annual revenue to more than $2 dard software for recognizing cus- ees in 28 states and nine countries. reflection of where we are at as a pect any material culture shift at billion. For 2010, Valassis reported tomer identifications, such as a re- Outgoing CEO Schultz will retire company. My goal is to create long- the company,” Salmon wrote. net income of $385.4 million on rev- ward card or cell phone number, he on Dec. 31 but will retain his posi- term value for our shareholders.” Schultz’s stewardship is appre- enue of $2.3 billion, compared with said. Until a winner emerges among tion as chairman of the board and He blames economic uncertain- ciated by his successor, whose job net income of $66.8 million on rev- some 30 or so competing developers will continue to work for Valassis ty for the share-price inconsisten- will be somewhat easier because of enue of $2.2 billion in 2009. — whose software would be used (NYSE: VCI) under a “three-year cy in share prices and fluctuations what he accomplished. Mason was dispatched by across a network of 15,000 to 25,000 consulting arrangement with the in quarterly revenue. “Al has left the company in an Schultz to run Advo as its presi- stores — there is time for compa- company to assist with the leader- Financial news and services web- exceptional position. He steered us dent immediately after the deal nies such as Valassis to catch up. ship transition” that begins Jan. 1, site TheStreet.com noted after the through the Great Recession of was finalized. He returned in May “They can come in late. They the company said on Aug. 23. second-quarter earnings report that 2008-2009. Our core business is 2010 to become Valassis’ executive have the sales force to make it hap- “We can now focus more re- while there is some flux in revenue, very healthy,” Mason said. vice president of sales and market- pen; they have the relationships to sources against growing the digi- Valassis has the ability to cover Part of Schultz’s legacy is a legal ing. Mason has been with the com- make it happen,” he said. tal side of our business, and make short-term cash needs and is stable. triumph over archrival News Amer- pany since 1995 and will join the Mason, 54, won’t say how much the migration from a totally offline “The company’s liquidity has de- ica Marketing Inc., the Rupert Mur- board of directors Sept. 1. he specifically wants to grow the world into a much more balanced creased from the same period last doch-owned, New York City-based Schultz, a former Deloitte & online numbers, but it’s believed digital position,” Mason said. year, indicating deteriorating cash company that shares the U.S. Touche senior accountant in De- Valassis would like to eventually However, all the online attention flow,” it wrote. “During the same coupon market with Valassis. troit before moving to Valassis in see the majority of its revenue doesn’t mean abandoning its tradi- period, stockholders’ equity has in- The companies were engaged in 1984, became CEO when David come from digital sources as print tional paper segments, he said. creased by 13.64 percent from the a price war for a year and were em- Brandon left in 1998 to run Ann Ar- continues to suffer declines. “We don’t see print going away same quarter last year. Together, broiled in lawsuits over accusa- bor-based Domino’s Pizza Inc. The digital investment will in any way. We do see this con- the key liquidity measurements in- tions of unfair business practices. Mason does radically differ from come in the form of money, more sumer migration and client eye- dicate that it is relatively unlikely In January 2010, News America both Schultz and Brandon in at employees, new technology, and “a balls to digital. We want to be out that the company will face finan- settled the litigation for $500 mil- least one respect: He’s a Central big part of it is focus and urgency,” in front of that,” Mason said. cial difficulties in the near future.” lion on the eve of a federal trial in Michigan University graduate rather he said, while declining to discuss Another of his tasks will be to sta- Standard & Poor’s recently an- Detroit. The deal included an than a University of Michigan alum. financial specifics. It also could in- bilize revenue and share price, or nounced that Valassis has re- agreement that News America “I’m a dyed-in-the-wool Chippe- clude buying companies or joint try to amid the roiling global econo- placed biotech Immucor on its S&P would use Valassis’ shared mail wa,” he said, chuckling. ventures in the digital sphere. my while looking longer-term. MidCap 400 index. service for 10 years. Bill Shea: (313) 446-1626, “We want to accelerate our In the past year, Valassis’ stock Wall Street took the news that While Valassis recorded a sig- [email protected]. Twitter: growth there. Accelerates are part has seen a 52-week low of $21.50 Mason will replace Schultz calmly. nificant victory over its nemesis, @bill_shea19 Jewelers: Bankrupt shop’s successors aim for piece of market ■ From Page 3 ring for $10,000 that would cost room downtown just west of Old annual sales for the new business. it’s a one-and-a-quarter-carat dia- courtesy to peers who may have $15,000 at Tiffany’s, and you Woodward Avenue, Schubot hopes He’s preparing for several shows mond instead of two. People are lost a great deal of money in the wouldn’t know the difference.” to get more foot traffic than he got and still building inventory, so never going to stop having birth- downturn, Schubot said he’s start- Also bringing down the occupa- at Jules R. Schubot, where he was there are many variables. days, anniversaries, bar mitzvahs, ing to see that idea fade as the local tional costs is a space-sharing president of the store prior to liq- He hopes to lean on the intellec- baptisms and special events.” economy becomes stronger. arrangement with Skyline Diamond uidation. tual property assets of Jules R. The local jewelry retail market “There are people in this region Setters. Both jewelry stores are lo- Having started in November, Schubot as he grows the new busi- has been strong at the top and the who have wealth, and always cated in the same 3,600-square-foot Schubot is still building his inven- ness. All of the records, customer bottom of the price spectrum, said have,” he said. “Hopefully, suite at 3001 W. Big Beaver Road tory and displays in the shop. But lists and phone numbers are still Mark Tapper, co-owner of West they’re getting tired of not spend- and have their own staffs selling he’s mindful of the mistakes he in his possession, acquired Bloomfield Township-based Tap- ing money.” jewelry. made in the past, particularly with through the bankruptcy. per’s Diamonds and Fine Jewelry. Pear also said cleaning, main- Pear expects the co-location of debt. Tapper said his stores have seen taining and appraising diamonds stores will help both stores draw “I’m doing my best to stay away a 45 percent increase in same-store will always be a strong revenue customers, the way a mall might from debt,” he said. Room for more jewelers? sales over this time last year, al- stream. draw shoppers to several jewelry In the months leading up to the The metro Detroit jewelry mar- though commodity prices and the “Metro Detroit has always been a stores. liquidation and bankruptcy of ket has gone through the same value of the euro have impacted good diamond town, and there are a “We’re separate businesses, we Jules R. Schubot, Brian Schubot struggles as the rest of the local re- pricing as well, making it hard to lot of important diamonds in this have separate insurance polices said the store’s levels of debt grew tail market in recent years. Howev- compare current sales figures with area,” he said. “Those diamonds and a separate vault,” Pear said. as sales slowed. er, many of the stores have hung on. last year’s. need to be serviced, appraised, (set- “It’s really like two stores in the “And at one point, the bank de- But they can only hang on for so “We’ve seen strong sales for tings) tightened. People are going same space.” cided that we needed to find a loan long, said Gayle Chinn, owner of items under $2,000 and over to want to take those to a place that Having just opened in June, with someone other than them,” Chinn Jewelry Inc., a 78-year-old $10,000,” he said. “The market in knows what to do with them, how Pear said it’s hard to forecast the he said. “It was the beginning of store in Royal Oak. the middle, from $5,000 to $7,000, to take care of them. firm’s gross revenue, though he 2008. That was impossible unless “There are stores out there, that that’s the range that has not come “And when you do that, where guesses it will do $350,000 to you wanted a 25 percent interest I know of, that are literally living back like we’d like to see it.” are you going to take that? Not to $500,000 in sales for the first year. rate, and you’d never make off their credit cards right now,” A lower price point is something the mall.” enough margin to pay that.” he said. “And that’s not going to both Campanelli & Pear and Both stores say things are When the firm went into Chap- last forever.” Schubot Jewelers consider. Both friendly at this point, even though Schubot starting over ter 11 bankruptcy, it listed $2.8 mil- He said many jewelers have been give the same consumer target: they’re both going after the same Nearby in Birmingham, Brian lion in assets and $3.7 million in staying alive with gold sales in re- quality items that offer a value be- group of former customers. Schubot sees himself starting a debt. cent months as the price of gold has cause they aren’t as expensive as “We’re still friends,” Schubot company just as his grandfather The new firm is much smaller. climbed steeply, providing a chance customers might expect. said. did — but maybe with a little more Rather than a staff of 12 at Jules for jewelers to make a large profit Finding that strike zone, howev- But asked if he’s been to their to start with. R. Schubot, Brian runs the store buying old jewelry from consumers er, will be the challenge. store, he grimaced. “He started out as a pocket jew- with his wife and some part-time and selling to manufacturers. Schubot puts it as items in the “I still can’t bring myself to go eler,” Schubot said. “He was liter- help from his daughter. But there will always be a need $1,000 to $8,000 range. see it,” he said. ally selling items out of his pockets “It’s really a family business for jewelry, he said. While people with wealth have Daniel Duggan: (313) 446-0414, at the very beginning.” now,” he said. “Kids are always going to get withheld some of their luxury [email protected]. Twitter: With a 1,000-square-foot show- Schubot wasn’t ready to guess at married,” Chinn said. “But maybe spending in the past few years as a @d_duggan 20110829-NEWS--0020-NAT-CCI-CD_-- 8/26/2011 5:28 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS August 29, 2011 Dunes: Social media was the sleeping giant for Sleeping Bear ■ From Page 1 through their email blasts,” North The lesson is that social media year at this time. And even with- Miser’s Hoard in the nearby village growth and tourists. said. works, North said, but it is not out the GMA spot, July was the of Empire — home to an annual Cherry Republic President Bob MyNorth.com sent a special done overnight. It is something second-busiest ever at the dunes, Asparagus Festival. Sutherland — whose business re- email blast to 27,000 people, includ- businesses need to engage in con- attracting 416,000 visitors. This Skinner said he and other busi- cently has been expanding into ing 2,000 to 3,000 businesses, plus stantly. Hard sell does not work. year, about 668,000 people have vis- nesspeople have seen increased other parts of the state, including the Traverse City-based operators “You don’t walk into a cocktail ited Sleeping Bear Dunes, which visits since the GMA program ran. Traverse City, Charlevoix and of the annual National Cherry Festi- party and start shouting your sto- Ulrich said is above average. And the program ran in an im- Ann Arbor — credits social media val and Traverse City Film Festival. ries across the room,” she said. But if it’s difficult to predict ac- proving tourism climate — local for the “Most Beautiful Place” Cherry Republic, a popular “You listen to other people’s sto- tual visitors attracted by the GMA cottages are booked up for the rest award but also something else: a tourist destination in Glen Arbor, ries, and you tell your story to one report, virtual ones went through of this summer and into next year. sense of mission among those who used its 50,000-circulation e- person, and if it’s appropriate, the roof. This time of year, the But because Skinner wears love Sleeping Bear Dunes. newsletter to encourage voting for they might mention it to another Sleeping Bear website typically many hats in Empire, his first re- In the Midwest, Sutherland con- Sleeping Bear Dunes. The Home- person. It really is an ongoing, gets 1,500 to 2,000 page views a action was a bit of nervousness tends, there are only a few places stead resort in Glen Arbor did the long-term investment in the social day. On Aug. 17, when the “Most about the increased exposure. from which to choose when decid- same. And their friends told their marketing community.” Beautiful Place” selection was “It was a little bit daunting,” he ing on the most beautiful. Other friends via Facebook, Twitter and Ulrich said it’s hard to say made, that number rose to nearly said. “It means there’s a lot of regions have more choices. And other social media until the victo- whether the exposure will result 15,000. work we’re going to have to do.” then there’s an intangible element. ry was won. in increased visits to Sleeping Paul Skinner is president of the It’s part of his responsibility to “There’s a lot of positive energy About 22,000 votes went to Sleep- Bear and surrounding businesses. chamber of commerce, chairman get the zoning and infrastructure here,” Sutherland said, “and peo- ing Bear, said Ulrich, deputy direc- In recent days, visits to the of the planning commission and of the village prepared to make ple are seeking that even more in tor of the Sleeping Bear Dunes. dunes have been higher than last proprietor of a tourist shop called sure Empire can accommodate these struggling times.” Fieger: Lawyers cite ethics concerns; ex-boss says, ‘Get a life’ ■ From Page 1 torneys told Crain’s that a memo- neys in the spring, around the randum earlier this year from time Johnson and several of the as- Fieger was a factor in their resig- It’s called your THE FIEGER EXODUS sociates left. nations between March and May. “ Attorneys who have left since Jan. 1. A memo introducing new caseload But he said without seeing the In the memo, Fieger proposed to caseload — if you requirements was distributed in the first quarter of this year. memorandum or a law firm policy withhold paychecks from attor- don’t have 30 cases in writing, he could not be certain neys who don’t maintain a mini- Farmington Hills if it creates an ethical conflict for mum of 30 pending lawsuits, or im- in a firm like this, Arnold Matusz, Arnold J. Matusz PLLC attorneys. He said he is not aware pose a $25,000 fine on attorneys Todd Weglarz, Law Offices of Todd J. Weglarz PLLC of any formal request for the com- who don’t try at least three cases William McHenry, Law Office of William J. McHenry PLLC mittee to review it or form an opin- per year. you aren’t The attorneys share offices and a common area that Matusz sublet June 1 ion. They claim the penalties create interested enough in from Secrest, Wardle, Lynch, Hampton, Truex and Morley PC, which has Not everyone who left this year an ethical minefield where attor- consolidated its space in Farmington Hills. McHenry moved several days cites Fieger’s performance goals as neys’ own financial interests could working hard. later and Weglarz this month. be at conflict with their profession- ” a reason. Rebecca Walsh, an associ- al responsibility to clients. ate of 16 years who joined Jesse Re- Geoffrey Fieger Detroit iter in Bloomfield Hills to form Reit- “A lawyer who is subject to that Paul Broschay, Law Offices of Paul Broschay PLLC policy would be obligated under er & Walsh PC in May, said the mer, attorneys said. Michael Dezsi, Law Office of Michael R. Dezsi PLLC the law to inform a client, ‘I could timing of her move was a coinci- Associates at the firm generally be subject to financial penalties if I The pair rent adjacent offices on the seventh floor of the Ford Building dence. start at around $90,000 per year and settle your case.’ And what lawyer after Dezsi left Fieger in January and Broschay in May. Her new firm handles mainly can also collect up to 10 percent of would ever want to have to do medical malpractice, with a sub- contingency fees above the first that?” Johnson said. Southfield specialty in birth trauma cases, as $350,000 won in their cases, some of Ven Johnson, president, Johnson Law PLC well as some civil rights litigation. “If … you don’t tell your client, the departed attorneys said. reject a settlement and then lose a Former partner since 2001 and second in seniority to Fieger, renting Fieger would not discuss individ- “I just got a better job offer. The case, the client could find out and space from Sullivan Ward Asher & Patton PC. The two separated May 13 ual attorneys’ performance, but he whole concept of what I do now is tell you, ‘You owe me that money.’ following differences over the performance targets; Johnson does not said 30 pending cases and three tri- closer to what I wanted to do in my And he’d be right.” oppose caseload or trial goals but thought the financial penalties can als per year are reasonable goals. create conflicts of interest. practice as a whole,” she said. Baloney, said Fieger, who Several recent hires have kept the “And I think I’m actually working claims the performance goals for firm at 20 attorneys, he said. Troy harder now. This is a very differ- his attorneys are reasonable and ent environment.” that some defectors are using an “We’ve hired people with equal Gregory Wix, senior counsel, Bowman and Brooke LLP Michael Deszi, president of the ethics argument to mask compla- or better skill. We’re stronger now Returned in the spring to the firm he left to become a Fieger associate Detroit-based Law Office of Michael cency or a propensity to settle than before (as a firm). They can about eight years ago. suits too often. complain all they want, but people R. Dezsi PLLC and a former associ- who like to complain a lot are ate with a personal injury and “Hard work is the secret sauce Others who left telling you a lot about them- criminal defense practice with of the Fieger firm,” he said. “It’s Rebecca Walsh, partner, Reiter & Walsh PC, Bloomfield Hills nonsense to talk about an ethical selves,” Fieger said. Fieger, said the policies were still “Why complain? They’re not Thomas Lizza, partner, Bone Bourbeau Bourbeau & Lizza PLLC, St. Clair in early discussion when he left. violation. We would never make a Shores hungry anymore. They had a lot of Fieger said the claim that he case go to trial when there’s a set- Victor Valenti, Valenti Law, Shelby Township tlement offer that’s fair. Most cas- experience but no initiative. They wasn’t considering the differences es aren’t settled for the highest dol- had retired in my law office, and in various practices lacks merit, I’m not interested in having people lar value that could be reached, William McHenry — now rents of- PC and secretary for the Michigan and even relatively new attorneys though, and whenever that hap- come here to retire on a paycheck can develop 30 or more pending from me.” fice space from Secrest, Wardle, Association for Justice, said 30 is a pens it sells out the client. The real Lynch, Hampton, Truex and Morley PC. reasonable number of cases in liti- cases out of the volume of in- Fieger last week formally an- violation is in settling a case for gation for automotive negligence quiries to the firm’s call center or less than it’s worth.” nounced Jeffrey Danzig was the “Did I have 30 cases in litiga- or personal injury, and some attor- various referrals. firm’s newest partner, an appoint- tion all the time? No. Was I an un- Fieger and the emigrant attorneys might have more than 100 “We do big cases. That’s why it’s ment Fieger had told Crain’s in derperformer? The year before I neys said it was earlier this year a goal of 30 (pending suits) and not May was in consideration after a left, I was the second-highest- cases in claims, appeals or litiga- that Fieger first discussed adopt- 60 or more like what John Morgan separation from then-partner Ven grossing associate. In terms of tion. ing the policies, which were culled sets out for his firm. It’s easily ac- Johnson. money, I was not an underper- But he also said medical mal- from the book You Can’t Teach complished,” Fieger said. Hungry: Creating the Multimillion Arnold Matusz, president of former,” he said. practice is far more involved and Dollar Law Firm by John Morgan, Arnold J. Matusz PLLC in Farming- “I did a lot of medical malprac- he could not gauge a reasonable “It’s called your caseload — if founder of Orlando-based Morgan & ton Hills and a former Fieger asso- tice, and the work in one of those is caseload because of the volume of you don’t have 30 cases in a firm Morgan PA, who is also handling a ciate, said the 30 pending cases the equivalent of 10 automotive depositions, travel and research like this, you aren’t interested defamation lawsuit against exon- rule is unreasonable because it negligence cases. They’re … very involved. enough in working hard. It’s just erated murder defendant Casey does not weigh the complexity of tricky, and it wasn’t fair to say it Stanley Pitts, partner at Detroit- mind-boggling to me that any attor- Anthony. medical malpractice or police mis- doesn’t matter what type of cases based Honigman Miller Schwartz and ney is complaining about having a The proposals originally were conduct cases against automotive they are as long as you meet the Cohn LLP and chairman of the State wealth of cases.” set to take effect in April but were negligence or simpler injury cases. numbers.” Bar of Michigan Professional Ethics Chad Halcom: (313) 446-6796, withdrawn for further review and Matusz — along with Weglarz Scott Goodwin, partner at Birm- Committee, said he was ap- [email protected]. Twitter: then went into effect over the sum- and fellow Fieger alumnus ingham-based Goodwin & Sceiska proached by some Fieger attor- @chadhalcom 20110829-NEWS--0021-NAT-CCI-CD_-- 8/26/2011 5:34 PM Page 1

August 29, 2011 CRAIN’S DETROIT BUSINESS Page 21 GE: Hiring blitz sweeps up homegrown talent www.crainsdetroit.com ■ From Page 1 EDITOR-IN-CHIEF Keith E. Crain PUBLISHER Mary Kramer, (313) 446-0399 or director of IT and chief informa- been criticized for undertaking. The site is a test bed for new [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- tion officer for the Society of Manu- “When GE announced this facil- technologies at GE, including a 0460 or [email protected] facturing Engineers. We’re able to bring ity in June 2009, it marked a signif- technology called “Telepresence.” DEPUTY MANAGING EDITOR Jennette Smith, GE recruiters began attending “ icant investment in IT and in re- Conference rooms are fitted with (313) 446-1622 or [email protected] together all the best SENIOR EDITOR Bob Allen, (313) 446-0344 or Baker’s Dozen meetings and even- gaining some of the technical cameras, microphones and other [email protected] tually hosted an event for the intellectual property we had out- cutting-edge teleconferencing WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- group at the Grace Lake campus, practices of each sourced in the past,” Charlene equipment. In a meeting, when an 8158 or [email protected] Watson said. Begley, president and CEO of GE employee speaks, a camera will COPY DESK CHIEF Gary Piatek, (313) 446-0357 or business under one [email protected] Several positions have been Home & Business Solutions and se- zoom in on that employee and turn ASSISTANT NEWS EDITOR Jeff Johnston, (313) filled due to the local relationships roof. nior vice president and chief infor- on the closest microphone, giving 446-1608 or [email protected] established, she said. mation officer for the entire com- him the floor in meeting rooms all DATA EDITOR Brianna Reilly, (313) 446-0418, “I happened to be at the right ” pany, said in an email. over the world. [email protected] Tina Watson, General Electric WEB DEVELOPER Steve Williams, (313) 446- place at the right time,” she said. The center is unique, Begley The technology also is used in 6059, [email protected] “As soon as GE saw the level of tal- said, because it houses GE techni- recruiting remotely, Watson said. WEB EDITOR Gary Anglebrandt, (313) 446-1621, ent in our group, it became a real joining in,” he said. “GE has cal experts under one roof for all of GE’s expansion is supported by [email protected] EDITORIAL SUPPORT Robertta Reiff (313) 446- win for them and a win for Baker’s raised the water level for all of us GE’s business units. $73.9 million in incentives over 12 0419, YahNica Crawford, (313) 446-0329 Dozen members.” in IT.” “It’s not tied to any one business years from the state and a one-time NEWSROOM (313) 446-0329, FAX (313) 446- GE hosted a recruiting event The IT industry growth in unit across GE and that’s the real $4.5 million in federal stimulus 1687 TIP LINE (313) 446-6766 earlier this month for IT employ- Michigan is also in part due to the viability of this facility for GE,” dollars granted through Wayne REPORTERS ees of Borders Group Inc. — which is state’s low cost of living, said Bob Watson said. “We’re able to bring County in 2009. Daniel Duggan, senior reporter: Covers retail, real estate and hospitality. (313) 446-0414 or in the process of liquidating its as- Cell, CEO of Redwood City, Calif.- together all the best practices of Wayne County executive Robert [email protected] Jay Greene, senior reporter: Covers health care, sets in bankruptcy. based e-commerce advisory firm each business under one roof and Ficano touted the GE facility at the insurance and the environment. (313) 446-0325 or GE also participated in a joint MyBuys Inc. — which employs 70 in keep that intellectual know-how in time as one of the flagship busi- [email protected]. Chad Halcom: Covers law, non-automotive recruitment effort with the Michi- Ann Arbor. house.” nesses in the aerotropolis zone be- manufacturing, defense contracting and Oakland gan Economic Development Corp., “Costs are lower here than IT professionals work on value- tween Detroit Metropolitan Airport in and Macomb counties. (313) 446-6796 or [email protected]. University of Michigan and Michigan where other tech companies set added software programs, includ- Romulus and Willow Run Airport in Tom Henderson: Covers banking, finance, State University MichAgain up, like in California,” he said. ing a flurry of mobile applications Ypsilanti. technology and biotechnology. (313) 446-0337 or called . [email protected]. The group set up private parties in “Those cities cause a burden for for BlackBerry, iPhone and iPads. The company also announced Nancy Kaffer: Covers small business, the city of Detroit, Wayne County government. (313) 446- Chicago, Austin, Texas and other employees. Here (Southeast Michi- “This past year was a big one for last August the intent to hire 130 0412 or [email protected]. cities saturated with Michigan col- gan) is more conducive to long- innovation, but few technologies workers for its GE aviation divi- Bill Shea, enterprise editor: Covers media, advertising and marketing, the business of sports, lege alumni in hopes of recruiting term growth.” saw as exponential a rise as the sion for a development and manu- and transportation. (313) 446-1626 or them back the state. Cell said MyBuys’ Ann Arbor mobile app,” Begley said in an facturing process center on the [email protected]. Nathan Skid: Multimedia reporter. Also covers the “These people left Michigan for location is its competitive advan- email. “At GE we have a robust campus — which was also support- food industry and entertainment. (313) 446-1654, various reasons, including to find tage over other growing IT compa- and vibrant suite of mobile apps ed by $2.3 million in incentives [email protected]. Sherri Welch: Covers nonprofits and services. work,” Watson said. “We’re really nies. that align with and complement from the state. (313) 446-1694 or [email protected] trying to recruit them back and GE’s mass hiring represents an our software ecosystem to set the “The incentives were how we’re Dustin Walsh: Covers auto suppliers, steel, higher education and Livingston and Washtenaw show them there are opportunities achievement for the MEDC, which digital future of GE.” able to put people here at the cen- counties. (313) 446-6042 or [email protected] here in Michigan.” has been criticized in recent years If GE, the largest producer of jet ter,” said Bankston. “The incredi- LANSING BUREAU Amy Lane: Covers business issues at the Capitol, Baker said GE’s investment in after audits revealed many compa- engines, sells an engine it will at- ble growth of hiring is facilitated telecommunications and utilities. (517) 371-5355, IT growth has sparked other com- nies were not meeting require- tempt to sell its new MyEngine by the tremendous amount of tal- FAX (517) 371-2492, [email protected]. or 115 W. Allegan, Suite 220, Lansing 48933. panies to also grow their IT pres- ments for state-certified tax cred- app, allowing GE Aviation cus- ent here in Michigan.” ADVERTISING ence in Southeast Michigan. its. tomers to monitor up-to-the- Since opening the center, GE ADVERTISING DIRECTOR Marla Wise, (313) 446- “I’m sure at first they were at For GE, the investment marks a minute information on the engine. has expanded into two other build- 6032 or [email protected] least retarding the amount of change of business practice. The It has created similar apps for ings in the Grace Lake complex. SALES INQUIRIES: (313) 446-6052; FAX (313) center is an attempt to bring more 393-0997 shrinkage in the market, but be- many of its business units, includ- Dustin Walsh: (313) 446-6042, ADVERTISING SALES Christine Galasso, Matthew cause they came in with this large IT work in-house as opposed to ing GE Rail, GE Energy and GE [email protected]. Twitter: J. Langan, Lori Tournay Liggett, Tamara Rokowski, long-term investment, others are outsourcing — a practice GE has Health Care. @dustinpwalsh Cheryl Rothe, Dale Smolinski CLASSIFIED SALES (313)-446-0351 MARKETING MANAGER EVENTS DIRECTOR Nicole LaPointe MARKETING ARTIST Sylvia Kolaski SALES SUPPORT Suzanne Janik, YahNica Crawford AUDIENCE DEVELOPMENT MANAGER UI: Candice Yopp Tapping general fund won’t fix debt troubles MARKETING COORDINATOR Jenny Griffith ■ PRODUCTION MANAGER Wendy Kobylarz From Page 3 PRODUCTION SUPERVISOR Larry Williams In addition, higher fed- low as 3 percent, Arwood said. He “We believe a mixture of cost- CUSTOMER SERVICE eral UI taxes began in 2010 said the state has no verification saving reforms and other solvency MAIN NUMBER: Call (877) 824-9374 or write [email protected] on all Michigan employ- There’s no that will be the case, but if so it solutions are needed to reduce the SUBSCRIPTIONS $59 one year, $98 two years. ers, to repay principal on “ would have a significant impact need for further borrowing and to Out of state, $79 one year, $138 for two years. Outside U.S.A., add $48 per year to out-of-state the federal loans. Those easy answer to on state interest payments and hopefully reduce employers’ UI tax rate for surface mail. Call (313) 446-0450 or federal tax levels will con- could make bonding less attrac- burdens over time,” Block said. (877) 824-9374. SINGLE COPIES: (877) 824-9374. tinue to rise annually as this problem. tive. “If you just bond for this prob- REPRINTS: (800) 290-5460, ext. 125; long as Michigan has an ” But Block said the federal inter- lem, without reforming the system (717) 505-9701, ext. 136; or rosie.hassell @theygsgroup.com. outstanding loan balance. Wendy Block, Michigan est rate could in the future climb and bringing down cost, the next TO FIND A DATE A STORY WAS PUBLISHED: The separate state solven- Chamber of Commerce higher than market rates. The time we hit a recessionary cycle, (313) 446-0367 or e-mail [email protected].

cy tax of up to $67.50 per chamber is still examining the we’re likely to be in the same situ- CRAIN’S DETROIT BUSINESS IS PUBLISHED BY employee began this year to help department to defer payment of bonding issue “to figure out what ation again.” CRAIN COMMUNICATIONS INC. CHAIRMAN Keith E. Crain repay interest. the $41 million shortfall into the makes sense,” she said. Whatever the options explored, PRESIDENT Rance Crain “The debt drives the problem,” next year while the state explores “If you bond for the problem, the state’s current interest pay- SECRETARY Merrilee Crain said Steve Arwood, director of the debt solutions, but the depart- you get rid of the solvency tax and ment problems aren’t the only is- TREASURER Mary Kay Crain Executive Vice President/Operations Michigan Unemployment Insurance ment said it didn’t have authority you get rid of the higher (federal) sue looming. William A. Morrow Agency and deputy director of the to grant the deferral, Arwood taxes, and you replace those with Michigan next year will enter its Group Vice President/Technology, Manufacturing, Circulation Michigan Department of Licensing said. some other revenue stream to re- fifth year of borrowing from the Robert C. Adams Vice President/Production & Manufacturing and Regulatory Affairs. “(The quick- In terms of a debt solution, the pay debt service on the bonds. And federal government, and states Dave Kamis er) we can get out from under this, state is still looking at issuing that’s quite appealing, to no longer that hit a five-year mark without Chief Information Officer the better off we will be.” bonds to pay off Michigan’s debt — be indebted to the federal govern- fully repaying debt can trigger sig- Paul Dalpiaz Director of Audience Development Operations Wendy Block, director of health a possibility that Crain’s first re- ment, to no longer have these nificantly higher federal UI taxes Michelle Roth policy and human resources with ported in February. penalties that are assessed … and to accelerate debt repayment. G.D. Crain Jr. Founder (1885-1973) the Michigan Chamber of Commerce, It’s an option that interest rates to lock in to an interest rate, so The current federal tax penal- Mrs. G.D. Crain Jr. Chairman (1911-1996) EDITORIAL & BUSINESS OFFICES: said employers need to be con- will drive, Arwood said. He said that we know what the cost of this ties that began in 2010 on Michigan 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 cerned “because there’s no easy the state currently pays about money is long-term.” employers and are rising annual- Cable address: TWX 248-221-5122 AUTNEW DET answer to this problem.” 4.1 percent interest on its debt and Even so, employers could end up ly, could in 2013 multiply by about CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 The chamber and state officials earlier this summer was project- paying slightly more than their 2.5 times. is published weekly, except for a special issue the third week of January, a special issue the fourth are looking at various options for ing rates of about 3.5 percent on current tax levels because the debt Arwood said the state will apply week of August, and no issue the third week of the state’s unemployment insur- tax-exempt bonds to refinance the is so large, she said. And Block next year for a waiver from the ad- December by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals ance system. The immediate issue debt. said issuing bonds can’t be the ditional penalties if the state has postage paid at Detroit, MI and additional mailing is making the Sept. 30 interest pay- But the federal government will only solution to the UI system. not refinanced its debt by that offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, Circulation ment, and on Sept. 16 the state will set a new interest rate on the out- The chamber is seeking re- point. It’s not known whether the Department, P.O. Box 07925, Detroit, MI 48207- receive the U.S. Department of La- standing borrowed federal money forms to reduce costs in the sys- waiver would be granted. 9732. GST # 136760444. Printed in U.S.A. Entire contents copyright 2011 by Crain bor’s final estimate of interest due, in January, and the state has been tem and ultimately make Michi- Amy Lane: (517) 371-5355, Communications Inc. All rights reserved. Arwood said. told informally by the labor de- gan’s business climate more [email protected]. Twitter: Reproduction or use of editorial content in any The state had asked the labor partment that the rate could be as competitive. @alanecdb manner without permission is strictly prohibited. 20110829-NEWS--0022-NAT-CCI-CD_-- 8/26/2011 6:07 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS August 29, 2011 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF AUG. 20-26

How Esther Gordy ended around the world, Advertis- any conflict of interest be- Court says move ing Age reported. tween its founder and Pres- the DRC ‘old boys’ club Ⅲ The Birmingham of- ident Clark Durant’s position Founder sells fice of Weber Shandwick has at the foundation and his Esther Gordy Edwards, who died Wednesday at the age on public worker been awarded a three-year, run for the U.S. Senate. Du- of 91, is being remembered $5.63 million contract to rant plans to campaign to for many things – including handle the Web, media, unseat pay was illegal public relations and digital Democra- $57.7M chunk keeping the Motown light strong in Detroit by creat- marketing work for Travel tic U.S. ing the Motown Museum. he Michigan Court of Michigan’s Pure Michigan Sen. Deb- But she left a mark in oth- Appeals says lawmak- state tourism advertising bie T ers acted illegally campaign. Weber Shand- Stabenow er ways, of Pulte stock too. She of- when they forced public wick is the sister agency of in 2012, ten told the employees to pay 3 percent McCann Erickson, which has taking on illiam Pulte, founder tics, show the Mitten lead- story of toward the health care of a $2.28 million contract to former of Bloomfield Hills- ing the pack with 32 percent breaking retirees. The three-judge do the campaign’s creative U.S. Rep. W based home builder of employers reporting that panel on Friday said law- work. Pete into the Durant PulteGroup Inc., cashed in a they’re hiring, an average “old boys’” makers were simply trying Ⅲ Some of the 100 Boeing Hoekstra. block of annual income of $44,438 club when to fill a budget hole when 737-900ER passenger jets or- Ⅲ The College for Creative 13 million and a 1.99 percent reduction what is to- they couldn’t muster the dered by Atlanta-based Studies in Detroit said Tues- shares of in the unemployment rate day’s Detroit two-thirds vote needed to Delta Air Lines Inc. are ex- day it has received a $2 mil- company from 2010 to 2011. Gordy Edwards Regional kill 3 percent raises for pected to go into service at lion grant from the Battle stock last Second is Indiana, fol- Chamber was holding “stag” state employees in 2010, Detroit Metropolitan Airport. Creek-based W.K. Kellogg week in or- lowed by Massachusetts in cruise trips. and that they illegally The single-aisle, 180-seat Foundation to help fund der to pay the No. 3 spot. As the first woman elected trampled the work of the jets can serve on any do- CCS’ expansion of its inte- off a person- to the chamber board, Esther Michigan Civil Service Com- mestic route. grated campus for art and al loan of Metro Detroit firms make decided she would go too. mission, which had ap- design students, and to sup- which he The chamber had been proved the raises. port the school’s efforts Pulte had used the Inc.’s fastest-growing list holding a Great Lakes cruise COURTS over five years to prepare shares as collateral. Detroit young people for Four metro Detroit com- — and later an Atlantic Ⅲ The Michigan Court of At a value of $57.7 mil- cruise from Miami to Hali- ON THE MOVE creative careers. panies are included on Inc. Appeals ruled Wednesday lion, that’s one heck of a fax, Nova Scotia — since Ⅲ Charles Carpenter has Ⅲ The Michigan Film Of- magazine’s annual list of that medical marijuana personal loan. 1903. Eventually, the “old been named CEO of Medical fice has approved an incen- the 500 fastest-growing com- cannot be sold through dis- The company issued a boy atmosphere … took their Advantage Group, an Ann panies in the country. pensaries, the Associated tive of $411,650 on $1.03 mil- statement on the matter, toll on the cruise’s viability Arbor- and East Lansing- The monthly business Press reported. lion of projected in-state considering that it repre- and public image,” the cham- based consulting and man- publication chooses compa- Ⅲ The U.S. Court of Ap- expenditures for the latest sented 3 percent of the com- ber’s history book says. agement services company nies based on percentage of peals for the 6th Circuit has project of Farmington pany’s total outstanding After Esther’s initial with five medical groups in revenue growth from 2007 upheld a U.S. District Court Hills-based Scientifically stock, but would not com- cruise, the chamber shifted Southeast Michigan. He re- to 2010. Minimum 2007 rev- injunction against Satisfied Proven Entertainment: a De- ment on Pulte’s loan. He re- gears. Then-president places Larry Schwartz, who is enue is $100,000; minimum Brake Products Inc., a Cana- troit-centric video game tired from Pulte last year. Frank Smith steered the retiring but will continue 2010 revenue is $2 million. dian automotive supplier called “Ghost Game.” But while cashing in cruise to an on-land public as a consultant through the Closest to the top was accused of stealing trade se- Ⅲ John Frith, vice presi- $57.7 million in stock policy conference at the end of the year. Bingham Farms-based Trilla- crets from Ann Arbor- dent of Detroit-based auto might break some folks’ Grand Hotel on Mackinac Is- Ⅲ Longtime auto execu- corpe Construction, which re- based Affinia Group Inc. dealer consultants Urban bank, Pulte, 78, is still sit- land. The year was 1981. tive Carlos Mazzorin was ported $29.2 million in 2010 Ⅲ Wayne County Circuit Science, said Wednesday ting on another 42 million named to the board of di- revenue, representing 7,737 Judge John Murphy ruled that from the beginning of shares. Friday’s share rectors of Amerigon Inc. He percent growth since 2007. BITS & PIECES Thursday that County Ex- 2011 until the end of July, price trading near $4.65 most recently served as ecutive Robert Ficano could the number of local dealer- Rochester Hills-based Al- Ⅲ Crime Stoppers of Michi- means he has another po- president and COO of Cana- not impose a roughly 20 ships fell by 0.4 percent, pha Synopsys grew 1,770 per- gan’s seventh annual recog- tential $195 million. da-based Magna Internation- percent wage cut on em- from 230 to 229, while na- cent for 2010 revenue of $2.1 nition dinner will recognize al Inc. subsidiary Magna ployees, and that changes tionally they grew by 0.4 million, landing in the No. the leadership of Cynthia Electronics Inc. to compensation rates must percent. Michigan ranks No. 1 166 spot. Broadgate and Vigi- Pasky, founder and CEO of Ⅲ Bodman LLP attorney Va- be approved by the county Ⅲ A new “green” termi- lant Technologies, both based Strategic Staffing Solutions in job-growth poll lerie Brader will become ener- commission. Unions sued nal was unveiled Wednes- in Troy, landed at No. 486 Inc.; Nancy Schlichting, CEO gy policy officer for the after Ficano imposed the day at Oakland County Inter- After years of stories and No. 312 respectively, of Henry Ford Health System; Michigan cut last year, and say they national Airport in Waterford about Michigan’s share of with 709 percent growth and Barbara McQuade, Unit- Economic De- will pursue back wages. Township. The 15,000- the economic downturn, fi- and $3.3 million in revenue ed States Attorney for East- velopment nally there’s some good for Broadgate and 1,054 per- ern District of Michigan. square foot project cost $7.5 Corp. Sept. news to report: The state is cent growth and $3.5 mil- The dinner, which benefits million and was funded by 12. Brader, OTHER NEWS No. 1 on a Newsweek/Daily lion in revenue for Vigilant. Crime Stoppers, is at 6:30 grants from the Federal Avia- 34, will help Beast assessment of the 20 Two other state firms, p.m. Oct. 18 at the General Ⅲ Federal highway safe- tion Administration, the U.S. make policy best states for job growth. Traverse City-based Dancin’ Motors Heritage Center in ty officials say as many as Department of Energy and recommen- The results, based on a Dogg Golf, and Richland- Sterling Heights. For ticket 3,000 autos in Ann Arbor the Michigan Department of dations in combination of poll num- based Alliant Healthcare Prod- or sponsorship details, call will be equipped with wire- Transportation Bureau of areas from bers and employment statis- ucts were also on the list. (313) 922-5000, Ext. 12. Brader less safety equipment next Aeronautics, along with air- natural gas year that will allow vehi- port user fees. Included in hydraulic fracturing to eco- cles to “talk” to each other the construction of the ter- nomic development oppor- and warn drivers of im- minal were Kenneth Neu- tunities in energy, to the de- pending collisions, Automo- mann/Joel Smith and Associ- bate some are trying to raise tive News reported. ates Inc. of Southfield and over reopening state energy Ⅲ Sports radio station Frank Rewold and Son Inc. of reforms and lifting the cap WXYT 1270 AM will switch Rochester. BEST FROM THE BLOGS on the amount of customers to a largely conservative Ⅲ A consortium of eco- READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS that can switch from regu- all-talk lineup Sept. 12. Pro- nomic development agen- lated utilities to alternate gramming on sister station cies is soliciting proposals What’s a liquor license worth? New QB ranks find Lions ... rank electricity suppliers. WXYT 97.1 FM will remain for a “transformative” pro- unaffected. ject in downtown Detroit’s They easily sell for Where Lions COMPANY NEWS Ⅲ Gov. Rick Snyder, mem- Capitol Park, with an eye over“ $100,000 in areas quarterbacks“ rank on the bers of his administration toward a walkable district like Birmingham and list reflects Detroit’s Ⅲ Van Buren Township- and economic-development blending retail, residential Royal Oak. … So it would poor performance over based Visteon Corp. said officials plan to promote and dining or entertain- seem a liquor license the years. Basically, this Monday it intends to invest ment venues. The consor- covering all of Campus is a litany of quarterback Michigan agriculture and in Chinese supplier Wuhu Martius Park would have mediocrity. the state’s business climate tium comprises the Detroit an astronomical price Bonaire Auto Electrical Sys- as part of a late-September Economic Growth Corp., the tag, right? Wrong. ” tems Co. Ltd. through one of investment mission to Chi- Michigan Economic Develop- its international affiliates. na, Japan and South Korea. ment Corp., the Michigan ” Ⅲ General Motors Co. is Ⅲ The board of the De- Land Bank Fast Track Authori- Reporter Nathan Skid’s Detroit-area restaurant blog Reporter Bill Shea’s “Shea’s Stadium” blog on the launching a comprehensive troit-based New Common ty, the Wayne County Land can be found at www.crainsdetroit.com/skid business of sports can be found review of how it spends bil- School Foundation has asked Bank and the Invest Detroit at www.crainsdetroit.com/sheasstadium lions in advertising dollars its attorneys to look into Foundation. DBpageAD.qxp 8/19/2011 3:08 PM Page 1

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