'Music Can Be That Bridge'

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www.crainsdetroit.com Vol. 27, No. 11 MARCH 14 – 20, 2011 $2 a copy; $59 a year

Page 3 Moroun ad blitz, big names ‘Music can try to turn tide on bridge Snyder tax break be that bridge’ for business: 60% Calley: Focus is on SHIFTING THE BURDEN What’s a Pontiac dealer to Sphinx seeks to expand Under Gov. Rick Snyder’s plan, business taxes do? ‘Shift gears’ for Buick equity, job growth would contribute less to the state’s general and School Aid fund revenue, and individual income global reach with BY AMY LANE taxes would contribute more: Amid Mideast turmoil, rising CAPITOL CORRESPONDENT Currently FY 2013 diversity conference Business tax: 11% Business tax: 4.3% oil prices, Japan earthquake LANSING — Gov. Rick Snyder’s tax reform proposal would slice business-tax contribu- latest challenge to suppliers BY SHERRI WELCH tions to state revenue and shift the burden CRAIN’S DETROIT BUSINESS largely to increases in individual income tax- Other: Other: es. 58% 54.7% Inside The Sphinx Organization plans to estab- Under Snyder’s plan, Michigan’s main busi- lish an international conference on in- ness tax would generate 4.3 percent of the creasing diversity in classical music state’s general fund and School Aid Fund rev- If Icahn sells Federal-Mogul Individual income Individual income while showcasing its musicians. enue — a major shift from the nearly 11 per- tax: 31% tax: 41% cent that the current Michigan Business Tax stake, private equity firms “SphinxFest” Source: Crain’s research, Public Sector Consultants Inc. supplies. could show interest, Page 8 IDEA: DETROIT would take place in The net business-tax revenue in fiscal 2013 England over a is even lower — 1.6 percent of general fund 2013, when changes are fully phased in, equat- Speaking: Sphinx and school aid revenue — if tax-credit payouts ing to a 60.8 percent tax cut. founder among week’s time, bring- are factored in, according to a recent analysis Beyond that, the state would pay out Crain’s List innovators addressing ing together key $500 million in previously granted tax credits conference, Page 4 arts, education and by Gary Olson, a senior fellow at Public Sector Consultants Inc. that year, further reducing business-tax con- Michigan’s largest diversity leaders But increasing, from 31 percent to 41 per- tributions to the general and School Aid funds from the country to discuss best prac- cent, would be the amount of state revenue to a net $292.7 million, or an 85.5 percent drop employers, Page 18 tices and to hear performances from generated from individual income taxes. from the current MBT. By comparison, general fund and School Sphinx musicians. Snyder’s plan would drop business-tax revenue from $2 billion to $792.7 million in fiscal This Just In Plans for the conference, which See Tax, Page 26 Sphinx seeks corporate funding to support, are part of an international ex- Chinese company plans pansion of Sphinx’s mission to expansion in Canton Twp. See Sphinx, Page 28 Bing team’s turnover questioned A major Chinese automotive parts manufacturer is Sphinx expanding a technical center in Southeast Michigan — the founder Departures put power in fewer hands first step of its plan to form Aaron rector of planning and development; Janet An- alliances with U.S. suppliers. Dworkin BY NANCY KAFFER CRAIN’S DETROIT BUSINESS derson, deputy budget director; and the entire The China Auto Parts & Ac- Office of Targeted Business Development. cessories Corp., a group of Al Fields joined Detroit Mayor Dave Bing’s And three veterans of the Kilpatrick admin- suppliers with $30 billion in executive team in January 2010. A veteran of istration — Chief Communications Officer annual sales, is expanding a former Mayor Kwame Kilpatrick’s adminis- Karen Dumas, Chief of Staff Shannon Holmes and Canton Township technical tration who also has private CFO Norm White — continue to center that it shares with sector experience, Fields said climb the organizational chart. Tempo International Group Ltd., he was recruited by Bing and So many departures have a Chinese maker of chassis other top city officials. People come left power in the mayor’s office components. Fifteen months later, he was “ concentrated in the hands of a The Canton facility al- and go. What’s gone. few C-level employees and ready has 100 engineers, and Fields is one of 46 employ- group executives, a lineup that CAPAC is hiring an addition- interesting is that ees, 31 of them managers, di- critics of the administration al 100. The company has rectors, deputy directors or say lacks the experience to spent $10 million on the facil- it’s all in the first group executives, who have guide the state’s largest city. ity and expects to spend left the mayor’s office in the To some, it signals instability more as operations expand. 22 months. past 22 months. in the mayor’s office. “We want to use this as a ” Most of the 46 were asked to Sheila Cockrel, “There’s always been a lot of See This Just In, Page 2 resign or their appointments Former City Council member movement on and off the 11th MIKE MOURADIAN were revoked; a handful re- floor,” said Sheila Cockrel, tired or were cut as departments were elimi- who served 16 years as a Detroit City Council nated. member and is now an adjunct professor at Bing defends his personnel choices as Wayne State University’s Irvin D. Reid Honors housekeeping, clearing out unsuccessful lega- College and owner of Crossroads Consulting. cy appointees from past administrations. “People come and go. What’s interesting is But many of the 46 were hires made by Bing, that it’s all in the first 22 months.” including Fields; former Bing Group CEO Kirk Cockrel said the churn shows that Bing is Lewis, who served as Bing’s chief government prepared to be decisive when it’s time to make

NEWSPAPER and corporate affairs officer; Charlie Beckham, chief administrative officer; Warren Palmer, di- See Turnover, Page 27 20110314-NEWS--0002-NAT-CCI-CD_-- 3/11/2011 5:31 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS March 14, 2011

der’s proposed 2012 budget, said cent of the program’s 1.8 million Initiative promoting Lake St. DMC parent lays off staff THIS JUST IN MEDC President and CEO recipients who are in Medicaid’s Clair as a tourism attraction and Michael Finney. fee-for-service program, among economic development asset. Last week, the Detroit Medical ■ From Page 1 Local participants include other things. Gerard Santoro, senior planner Center’s new corporate parent, George Jackson, president and — Jay Greene in the department, becomes the Vanguard Health Systems Inc., laid platform to (work with) all the CEO of the Detroit Economic county program manager of land off 21 employees at its Nashville other R&D centers in Detroit,” Growth Corp., and Maureen Dono- 3 leave Colliers, start new firm and water resources. headquarters — one side-effect of said CAPAC President Chen Kan- hue Krauss, director of the Oakland Santoro’s duties will include the acquisition of DMC, said Van- guard officials. gren, following a speech to busi- County Department of Economic De- Three commercial real estate coordinating with the nonprofit The layoffs represent about 10 ness executives here. velopment and Community Affairs. brokers have left Colliers Interna- Lake St. Clair Tourism Initiative percent of corporate staff. Beijing-based CAPAC, which is Stephen Cassin, executive director tional to form their own firm. launched in 2009, the Macomb The company said the job cuts primarily an aftermarket suppli- of the Macomb County Planning and Greg Kloiber, Al Leszczynski and County Water Quality Board and were part of a decision to shift er, generates annual sales of Economic Development Department, David Stechly have formed TG Cor- other agencies on improving wa- $80 million in the U.S., a relative- joins the group this week. porate Real Estate Advisors with a various management duties to ter quality and the economic de- some of the 26 hospitals it owns in ly small portion of its global The council was organized ear- new office in Livonia. All three velopment potential of the lake five states. Departments included sales. Chen said he wants to sell lier this year and will be an ongo- are owners, and Kloiber is man- and Clinton River. supply chain, marketing, strate- more components in North ing advisory panel to the MEDC aging partner. He will also seek funding for The three brokers were able to gy, program management opera- America, and he also hopes to on coordinating economic devel- debris removal from the river. opment programs. bring with them four major tions and clinical operations. form partnerships with U.S. sup- Hackel said the program manag- — Chad Halcom clients that have provided rough- A Vanguard spokesman said pliers to sell parts in China. er will promote and market the ly 85 percent of their revenue in regional Vanguard offices could CAPAC also has linked up with lake and river, as well as court recent years, Leszczynski said. hire people to fill the void, but Di- Leuliette Partners, a Birmingham- Agencies lobby against businesses ranging from canoe ana Marx Prosi, vice president of based investment group that has The move follows several other departures at Colliers. Last year, rentals and liveries to hotels or marketing for the DMC, said it been working with Tempo Inter- mental health budget cuts Randy Thomas left to revive his marina casinos. didn’t need to do so. national. The Michigan Association of Com- former business, InSite Commer- Hackel estimates a cleanup of Part of the deal that sold DMC — Crain News Service munity Mental Health Boards has cial Group. Cam McCausland recent- the entire river would cost $1 mil- to Vanguard has promises not to signed an agreement with the ly left the position of managing lion to $1.5 million and could be close any of DMC’s eight hospi- Group advises MEDC Michigan Association of Health director to head up brokerage complete by late next year if the tals. But there was no pledge to Plans to lobby against expected services at Plante Moran Cresa in county finds the funding. protect local jobs. An informal group of 15 area mental health budget cuts this Southfield. — Chad Halcom — Jay Greene economic development officials year and expand managed care — Daniel Duggan expects to advise the Michigan opportunities. Economic Development Corp. by Gov. Rick Snyder’s 2012 budget CORRECTIONS late April on how to appropriate a proposal calls for a 3 percent cut, Hackel planner to promote Ⅲ A Page 1 story about the Detroit Lions in the March 7 issue should state budget allotment for busi- or $8.5 million, of community benefits of Lake St. Clair have named William Clay Ford Sr. instead of his son as the team’s buyer ness attraction and retention. mental health services for non- in 1964. The group expects to meet to- Medicaid clients, the fourth Macomb County Executive Ⅲ A story on Page 16 of the March 7 issue incorrectly stated Hella Elec- Mark Hackel day in Lansing to begin develop- straight year of reductions. has assigned a senior tronics Corp’s 2010 revenue as $3.5 billion. The correct figure was 3.5 bil- ing a process for companies to The associations said they will planner in the county Planning lion euros, or $4.3 billion. It also incorrectly stated how many radar- seek funds allocated to business lobby to expand Medicaid man- and Economic Development De- based sensors Hella has sold worldwide. The correct number is 1.2 development in Gov. Rick Sny- aged care enrollment to 40 per- partment to lead a Blue Economy million.

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March 14, 2011 CRAIN’S DETROIT BUSINESS Page 3 Can Moroun’s big guns win draw? Health Care Extra

year-old bridge despite opposition from Ad blitz, big names circle wagons against rival Canada, also has hired former Clinton administration consultant and Fox News BY BILL SHEA Grosse Pointe trucking industrialist commentator Dick Morris and bought CRAIN’S DETROIT BUSINESS Manuel “Matty” Moroun, who bought airtime on Fox News for commercials the Ambassador Bridge in 1977, has critical of the proposed bridge. What might be a last-ditch effort by the spent an estimated $400,000 via his Detroit Moroun says the new bridge is un- Ambassador Bridge’s owner to sway International Bridge Co. on a statewide needed because border traffic remains at public and political television campaign urging viewers to pre-2000 levels and is unfair government opinion against a pro- PAN SAGA call lawmakers to protest the new com- competition that would bankrupt his posed government- S peting span, dubbed by Gov. Rick Snyder span. He claims to have a legal monopoly owned Detroit River Details: Costs, the New International Trade Crossing. Legis- on Detroit’s border corridor. Giving physicians a stake crossing is being background and lation for that bridge is expected to be in- Moroun’s 30-second television spot greeted with mixed re- big names, troduced soon in Lansing. warns that the bridge “will lose money in services, Page 19 Moroun Page 29 views. Moroun, who is seeking to twin his 81- See Moroun, Page 29

Company index These organizations appear in this week’s Crain’s Challenges Detroit Business: American Axle & Manufacturing ...... 25 New brand, new life Amway Corp...... 9 Angle Advisors ...... 8 hit suppliers BorgWarner ...... 25 Dealer loses Pontiac, Cascade Engineering ...... 16 Cellasto ...... 3 sells buyers on Buick Center for Michigan ...... 15 in waves Delphi ...... 25 BY MIKE COLIAS Denso ...... 25 Detroit International Bridge Co...... 3 CRAIN NEWS SERVICE Oil prices, quake Federal-Mogul ...... 8 In 2005, Sam Slaughter’s Farm- Foley Lardner ...... 20 ington Hills dealership sold exact- test their strength Forest Hills Foods ...... 13 ly zero Buicks. Last year, he sold Gilmore Collection ...... 12 687, more than any other store in Grand Valley State ...... 12 BY DAVID BARKHOLZ the country. Henry Ford Health System ...... 19 AND DUSTIN WALSH A shrine in his showroom tells Henry Ford Medical Group ...... 21 part of the story behind the num- CRAIN’S DETROIT BUSINESS Henry Ford Vattikuti Urology Institute ...... 27 bers. A “1926-2010” sign hangs After one of the biggest two- Hydra Professionals ...... 8 above a gleaming 1966 Pontiac week jumps in gasoline prices on IHS Automotive ...... 25 GTO, paying homage to the now- record, it remains to be seen Meijer ...... 9 defunct brand that represented whether the economy, and the more than half of Slaughter’s Metro Health Hospital ...... 10 auto supply chain, is resilient business just 18 months ago. Mich. Dept. of Energy, Labor & Economic Growth . . 17 enough to handle more tremors. Slaughter successfully an- Michigan Institute of Urology ...... 27 Last week’s earthquake in Japan, swered vexing questions faced by Mosaic Youth Theatre ...... 28 political volatility in the Middle hundreds of dealers in recent Nexteer Inc...... 14 East and a prediction for further up- years: How do you replace rev- Pennant Health Alliance ...... 10 ward gas price climbs are just some enue lost after the amputation of a Providence Hospital ...... 19 of the factors that could affect earn- key franchise? How do you transi- Public Sector Consultants ...... 1 ings outlooks. tion to a new brand from the one Right Place ...... 16 Surging oil prices are expected your customer base has favored? Rockford Development Group ...... 9 to cut 2011 profits of auto suppli- For Slaughter, 48, the answer ers, which are largely unable to Royal Technologies ...... 16 required a quick two-step. He pass along short-term increases in Sellers Buick-GMC ...... 3 spent the brutal downturn of 2009 the prices of raw materials. St. John Cardiovascular Co-Management ...... 19 milking Pontiac for much-needed Of 119 suppliers responding last St. John Hospital, Medical Center ...... 19 cash flow. At the same time, he week to a survey conducted by St. John Macomb-Oakland Hospital ...... 19 overhauled his store and re- Crain’s sister publication Automo- St. John Providence Health System ...... 19 trained his staff to sell Buick, tive News, 87 percent said the oil St. Joseph Mercy Health System ...... 27 which is attracting more upscale price spike will dampen their 2011 Steelcase ...... 9 buyers amid a product resur- profits. Most respondents said the The Sphinx Organization ...... 1 gence. hit would be 10 percent or less. Tri County Urologists ...... 27 “We tried our best to gracefully A silver lining, so far, is that get out of the Pontiac business Trinity Health ...... 10 only 14 percent of respondents said while also ramping up this whole TRW Automotive ...... 25 they have seen cuts in automak- premium idea,” said Slaughter, GLENN TRIEST University of Michigan Health System ...... 10 ers’ production plans as a result of dealer principal of Sellers Buick- Urological Surgeons ...... 27 higher oil prices. GMC. “We completely shifted Via Design ...... 10 We were able to move (Buicks) because Suppliers also say they have gears.” Visteon ...... 25 “ made progress over the past four Slaughter had low expectations Wello ...... 4 we kept a lot of those Pontiac customers years in reducing their sales re- when he acquired the Buick fran- William Beaumont Hospitals ...... 19 liance on truck and SUV plat- chise in 2006. By 2009, Buick rep- and picked up new ones, like Saturn. Windquest Group ...... 16 forms, which are most vulnerable resented just 10 percent of his ” Wolverine World Wide ...... 9 to oil shocks. overall volume. Pontiac was 55 Sam Slaughter, Sellers Buick-GMC With recent prices near $105 per percent and GMC 35 percent. barrel, the oil run-up will take In April 2009, then-General Mo- to finance ongoing construction. GM employee-discount market. about 5 percent to 10 percent out of tors Corp. said it would pull the So while Pontiac dealers across “It was either a good guess or this year’s profits, said Dave plug on Pontiac. Slaughter real- the country were scrambling to dumb luck, but we just said, ‘Let’s Grimes, business director for the Department index ized he would need to embrace purge their lots of unsold new make something out of this,’ ” Cellasto parts unit of German Buick, a brand long derided as a Pontiacs, Slaughter was snapping said Paul Phalen, Sellers’ sales BANKRUPTCIES ...... 4 chemical giant BASF. grandparent’s car. But he could up 500 units through dealer trades manager. CALENDAR ...... 24 not get enough Buick inventory in the second half of 2009. He had CAREERWORKS ...... 23 See Suppliers, Page 25 to generate the cash flow needed the benefit of being in a strong See Dealer, Page 27 CLASSIFIED ADS ...... 24 KEITH CRAIN...... 6 Bring ideas with you Getting to work OPINION ...... 6 Crain's and Advertising Age are hosting the Career information can be found THIS WEEK @ PEOPLE ...... 23 Idea: Detroit conference March 23. Register at Crain's CareerWorks, WWW.CRAINSDETROIT.COM at crainsdetroit.com/crainsevents. crainsdetroit.com/careerworks. RUMBLINGS ...... 30 WEEK ON THE WEB ...... 30 20110314-NEWS--0004-NAT-CCI-CD_-- 3/11/2011 2:52 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS March 14, 2011

THE MILLER LAW FIRM Idea: Detroit conference to hear a professional corporation from WaterWheel entrepreneur

BY SHAWN WRIGHT Idea: Detroit, modeled after Ad SPECIAL TO CRAIN’S DETROIT BUSINESS IDEA: DETROIT Age’s Idea conference held for the past five years in Manhattan, will Ⅲ What: Innovation-focused Cynthia Koenig, a University of conference sponsored by Crain’s feature 14 speakers, each talking Michigan MBA student, had an idea Detroit Business and Advertising about a specific product, innova- to help people in underprivileged Age. tion or trend. countries transport water more Ⅲ When: March 23 “Whatever small thing you can Our firm specializes in litigation: easily. Ⅲ Where: Taubman Center, do, just do it,” Koenig said. “When I From that College for Creative Studies started, I didn’t intend to launch a • Complex Commercial and Business thought, Koenig Ⅲ Registration: business in another country. I • Shareholder and Partnership created Ann Ar- crainsdetroit.com/events thought I’d raise funds and just con- • Automotive Supplier bor-based Wello, tribute to water projects interna- an award-win- tionally. (But) I knew it was impor- • Class Actions er. The conference is sponsored by ning social ven- Crain’s Detroit Business and its sis- tant. … It’s bigger than I thought it • Employment ture that manu- ter publication, Advertising Age. would be.” • Family Law and Probate Litigation factures and “There’s so much attention paid To help fund the project, Koenig, (248) 841-2200 distributes the to the negatives of Detroit. … Fay, and Mueller pitched Wello 950 West University Drive, Suite 300 WaterWheel. That’s what makes news,” Koenig last spring, finishing second in the millerlawpc.com Rochester, Michigan 48307 Koenig The Water- said. “But there are so many posi- 2010 Princeton Entrepreneur Net- Wheel — a 20- tive things to talk about. This is an work Pitch and winning the Dow gallon drum that can be pushed opportunity to highlight that Sustainability Challenge Grant. like a baby stroller and transports something’s going on, and a great The three also earned the Social four to five times the amount of opportunity to be optimistic about Impact Award at the 2010 Michi- water possible using traditional the future of Detroit — it’s not all gan Business Challenge. methods of collection, such as car- despair.” Koenig, who will graduate this rying a 5-gallon bucket on the head In addition to Koenig, Idea: De- year from UM, hopes attendees of — was designed for people who troit will feature social entrepre- the Idea conference will come live where safe drinking water is neurs such as Veronika Scott, a away with the feeling that they can not readily available. College for Creative Studies student take initiative because “even a Koenig, who had help from fel- who designed a coat for the home- small thing can have a huge, posi- low students Colm Fay and less that doubles as a sleeping tive impact on the world.” Christopher Mueller, said one of bag/shelter, using products from In addition to the speakers, the most inspiring experiences she two Michigan companies — Tyvek Crain’s will showcase the next had during the early stages before from Midland-based Dow Corning crop of innovative entrepreneurs creating Wello and the Water- Corp. and fleece from Dearborn- during its Big Ideas contest, to be Wheel was listening to a presenta- based Carhartt Inc. highlighted during the conference. tion by David Bornstein, author of Other speakers include David In tandem with Idea: Detroit, the How to Change the World: Social Morrow, founder of Warren-based Big Ideas competition asked en- Entrepreneurs and the Power of sporting goods firm Warrior Sports trants to submit their best ideas in New Ideas. Inc.; Eric Ryan, a Grosse Pointe na- the categories of arts and culture, Bornstein’s book profiles men tive and co-founder of Method Prod- entrepreneurship, education, en- and women from around the world ucts Inc., maker of eco-friendly vironment and bringing people to who have found innovative solu- household and personal care prod- live in Detroit. tions to a wide variety of social ucts; and Aaron Dworkin, founder Entrants submitted statements and economic problems. of Sphinx, the classical music com- about a problem, issue or opportu- “It was really eye-opening,” petition devoted to placing minori- nity and how they would address it Koenig said. “I didn’t know any- ty musicians in top orchestras (See with a solution, product or service. one was doing this. … The phrase story, Page 1). Submissions included lists of who ‘social entrepreneur’ was only be- Also speaking at the conference would contribute and how the ing talked about within the last will be Josh Linkner, founder of goals could be realized. couple of years.” ePrize and fund manager for Quick- Finalists will present their ideas Koenig will share her experi- en Loans Inc. founder and Chair- at the conference, at the College for ences and thoughts on being a man Dan Gilbert’s venture capital Creative Studies’ A. Alfred Taub- young social entrepreneur at the fund Detroit Venture Partners, aimed man Center for Design in Detroit. first-ever Idea: Detroit conference at seeding early startups in digital For more information, visit March 23, where she will be a speak- technology and digital marketing. www.crainsdetroit.com/2011ideas.

BANKRUPTCIES Is Your Business Aware of The following businesses filed for Chapter 7 or 11 protection in U.S. Changes to Michigan’s Bankruptcy Court in Detroit March 4- 10. Under Chapter 11, a company files for reorganization, Chapter 7 involves Unclaimed Property Law? liquidation. MH&A Real Estate Inc., 418 W. Tor- rington Drive, Canton Township, voluntary Chapter 7. Assets: $0; liabilities: $309,175. Get Informed ! Patros Inc., 18540 Frazho Road, Ro- seville, voluntary Chapter 11. Assets and liabilities not available. New date for reporting unclaimed Internet Medical Billing LLC, 691 N. property is July 1 (changed from Squirrel Road, Suite 108, Auburn Hills, involuntary Chapter 7. Assets November 1) and liabilities not available. Dormancy Period for most properties Investor’s Network Fund LLC, 390 En- now 3 years terprise, Suite 100, Bloomfield Hills, voluntary Chapter 7. Assets: $1.9 mil- 25% penalty may be levied … plus lion; liabilities: $2.4 million. interest One Stop LLC, 37490 Dequindre Road, Sterling Heights, voluntary Chapter More information, including free filing software is at 11. Assets and liabilities not avail- www.michigan.gov/unclaimedproperty able. — Shawn Wright DBpageAD.qxp 1/5/2011 9:19 AM Page 1

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Page 6 CRAIN’S DETROIT BUSINESS March 14, 2011 OPINION Michigan biz eager to get in the game ichigan isn’t coming back because it never went away — it just sat on the sidelines for a while. M So said Brian Campbell, the seasoned mergers- and-acquisitions dealmaker and operations whiz who, with his wife Mary Campbell, shared the Lifetime Achievement award from Crain’s and the Association for Corporate Growth at the fourth annual M&A Awards program. The room of nearly 350 bankers, accountants, investment bankers and investors listened to the Campbells recap their careers that started in Southeast Michigan about 30 years ago when Brian Campbell took a job at Masco Corp. At the time, he said, there were just two or three professional advisers and investment banking offices in Detroit. The success of the auto industry just didn’t create the infrastructure for supporting growth of the companies in the tiers below it. Today, that picture is dramatically different, with a dozen venture capital firms doing business in Michigan and a handful of private equity investors looking for deals. Today’s infrastructure, Campbell said, can help companies grow to become acquisition targets — or to become acquirers themselves. In any case, the growth creates wealth for owners and investors along the way. In fact, Campbell cautioned attendees to refrain from counting Michigan out of the competitive business arena. After all, TALK ON THE WEB fellow Ann Arborite Gov. Rick Snyder is a former venture capi- talist who understands what it takes to make companies grow. From www.crainsdetroit.com Re: DSO labor talks Reader responses to stories and Re: Cobo to get $221M upgrade To both sides: If you don’t get blogs that appeared on Crain’s I have attended many events at Bing’s inner circle seems smaller over it and get on with it soon, Web site. Comments may be Cobo over the years and will con- there will be nothing left to fight over. edited for length and clarity. tinue to do so. This is great news. Turnover at the top can be a good thing or a bad thing — or Grant Writer 4 Good James Goss sometimes something in between. Re: Beck, Detroit and Hiroshima If you put lipstick on a pig, it still Detroit Mayor Dave Bing seems content with the churn that Re: Thinking about banning Facebook? is a pig. We’re all thin-skinned. I guess JAK has produced departures of 31 higher-level managers within Banning social media seems to half-truths hit too close to home. Spectacular vision and design — the city of Detroit in the past 22 months. (See story, Page 1.) be more of an old-school approach John Galt a great move ahead for our entire re- He has company. in business. It should be all about Chicago, New York and Los An- the output of those employees, not gion. Across the street in the RenCen headquarters of General geles can’t pay their bills either. whether they take a five-minute K. Alessandro Motors Co., CFO Chris Liddell departed last week, capping a Hilco Industrial break to check Facebook. Empower The sprawl argument is a sopho- string of top-level changes that have been common at the com- the employees by trusting them, and moric one at best. Sprawl is mainly Re: Keith Crain on public broadcasting pany as it reinvents itself. measure their results. the result of the population’s desire Can’t disagree more with Keith Bing has a tough job in creating a new culture in City Hall JaredDetroit to spread from congestion, not the Crain. Sorry, but access to educa- that prizes integrity — as well as accountability and perfor- government’s encouragement to do so. tional television without ads is impor- mance. The churn suggests he has no problem making a tough Re: Detroit Water Department Dave M tant to the well-being of our kids. And call and letting a top aide go. It appears no one was protecting not everyone can afford cable. Re: State should welcome immigrants Anne Osmer But it also seems as though his circle of closest aides is get- the interests of the suburban users of the system who will now be Ms. Fassia misses the point com- Public TV has quality shows in a ting smaller. That can make for a tight, functioning machine. asked to pay for 30-plus years of pletely in her (Other Voices) arti- steady lineup that you can’t al- Or it can insulate the mayor from input that never makes it needed repairs. How high must rates cle. Arizona and other states like ways find on cable networks, and past the gatekeepers. be raised to complete the work Michigan are not anti-immigrant. it can be accessed without cable. I It’s a delicate balance. needed within six months? They are anti-illegal immigrant. Bloomfielder Supplier geek See Talk, Page 7 KEITH CRAIN: What happened to democracy in the U.S.?

All over this country, anarchy hard to see him or her Before that, Democ- to see what the voters do in the times when politicians don’t do seems to be jostling for position replaced in the next rats controlled the next election. what you want them to do. There against the rule of law. Peaceful election. White House and both But what’s happened in Wash- are many laws that are passed that assembly is one thing; everyone In fact, there are houses and seemed to ington is tame compared to what’s you don’t want passed. But that’s certainly deserves free speech, those who would tell be able to pass just been going on in many state capi- no reason for unlawful assembly but it seems to be getting out of you that is exactly about any bill the par- tols. I don’t think we expected it. or speech that borders on insurrec- hand. what happened on a na- ty in power was inter- And it may be happening in Michi- tion. I know plenty of folks aren’t tional stage last year ested in passing. A lot gan, too. Let the politicians do their job. If happy in some of the state legisla- when enough Republi- of voters weren’t hap- The voters have voted. If you you disagree, your job is to work to tures around the country, but the cans were elected to py with what they saw want to protest, OK, but do it get them un-elected for their next folks in the capitols have been control the U.S. House happening, so the elec- without looking to the entire term. duly elected. I always thought if of Representatives, tion last fall changed world like you are on the verge of Don’t threaten the legislative you don’t like what an elected offi- ending Democratic the balance of power. a riot. process. It is simply not democrat- cial is doing in office, you work control of both House and Senate. Obviously it will be interesting In a democracy, there are many ic. 20110314-NEWS--0006,0007-NAT-CCI-CD_-- 3/11/2011 2:26 PM Page 2

March 14, 2011 CRAIN’S DETROIT BUSINESS Page 7 OTHER VOICES: Economy demands economic education

Education is the silver fessional development of riculum. The State Board of Edu- der NCLB. Only improved access The crystal ball is clear: While bullet, and economic edu- the classroom teacher is cation approved and implementa- to academically-based, content-ori- young people are 50 percent of our cation is the crystal ball. one of the key variables in tion has begun with the new K-12 ented professional development population, they are 100 percent of It is critical to prepare a determining what stu- Grade Level and Course Content for teachers in economics, entre- our future. The future involve- young populace that un- dents learn. Expectations and new high school preneurship and personal econom- ment and leadership of Michigan derstands and appreciates Research confirms that graduation requirements, includ- ics can raise Michigan’s level of lies in our students’ understand- the private-market eco- teacher content knowledge ing one-half credit in economics. the quality of economics teaching. ing of economic education to lead nomic system. They must is vital to student learning. In 2008, then-Gov. Jennifer As the silver bullet of Michi- the new state economy into the acknowledge the critical Teacher preparation at Granholm signed legislation per- gan’s transformation, education is 21st century. role of entrepreneurship both the pre-service and in- mitting school districts to grant going to need the role, relevance David Dieterle is president and and small business in gen- service level remains the math credit for a personal finance and rigor necessary for a state in chief academic officer of the Novi- erating employment op- David Dieterle most important device for course. Nationally, the No Child economic transition. Michigan based Michigan Council on Eco- portunities. improving a student’s knowledge of Left Behind legislation, though un- teachers must have access to quali- nomic Education, an alliance to Michigan’s future is dependent economics, entrepreneurship and der debate, has a defined Highly ty academically-based content in promote and advocate for quality on our young people’s apprecia- personal economics. Qualified qualification for class- economics, entrepreneurship and economics, entrepreneurship and tion for the possibilities of the vi- Michigan has set in motion the room teachers. Many Michigan personal economics. Only then personal economics. For more infor- tal role Michigan can play in the evolution of Michigan education to economics teachers currently do will the needs of our citizens and mation, call (248) 596-9560 or visit ever-expanding global economy. If a knowledge-based statewide cur- not qualify to teach economics un- future leaders be met. www.mceeonline.org. our education system can prepare Michigan’s students for this future, Michigan will emerge ad- mired and desired for its business creation and a leadership role in a vibrant national and global eco- “HealthPlus takes care of my employees nomic community. Michigan education’s most critical variable is the classroom so I can take care of business. That’s a teacher. When John Milton Grego- ry wrote the Seven Laws of Teach- ing, he identified the vital role of big Plus.” the classroom teacher with his first and foremost law. Paraphras- ing, teachers cannot teach what they do not know. This law is still as relevant in 2011 as it was in 1884 when he wrote it. Content-specific and standards-based curriculum- focused teacher education and pro-

TALK CONTINUED ■ From Page 6 support PBS and will continue to do so. Your column came off pretty one-sided and selfish. J/B Heitman

Re: Detroit recovering, Bing says Agreed, “The city must be more business-friendly.” The same can also be said for many other communities in our region. Mark Cory

Re: Snyder’s budget I love the idea of “shared sacrifice.” The working poor sacrifice the earned income credit. Retirees on fixed income sacrifice by having their pensions taxed. State workers will sacrifice through union-busting provisions. And the wealthy will sacrifice ... hmmm. … I guess in Snyder’s world, everyone sacrifices in his own special way. AllanR

While I agree with Gov. Snyder HealthPlus goes above and beyond for employers. that we need to be the best not the cheapest, how does that jibe with the cuts to the universities? ǆƚĞŶƐŝǀĞƐƚĂƚĞǁŝĚĞĂŶĚŶĂƟŽŶĂůƉƌŽǀŝĚĞƌŶĞƚǁŽƌŬƐ billm Worldwide emergency coverage Re: Film industry to rally against cuts WĞƌƐŽŶĂůĂƩĞŶƟŽŶďǇĂĚĞĚŝĐĂƚĞĚƵƐƚŽŵĞƌ^ĞƌǀŝĐĞƚĞĂŵ How about working out a payback to the credits based on gross film re- ĂƐǇƚƌĂŶƐŝƟŽŶĨƌŽŵŽƚŚĞƌŚĞĂůƚŚƉůĂŶƐ ceipts? A win-win. Dirt Dog Customizable HMO, PPO and self-funded health plans These incentives are creating jobs and economic activity that would To enroll, contact your independent agent or call: otherwise pass us by. Flint, MI 1-800-530-9071 The film incentives are virtually www.healthplus.org worthless. That is why no other state is as dumb as Michigan to make them so high. HealthPlus HMO is a product of HealthPlus of Michigan, Inc. HealthPlus PPO is a product of HealthPlus Insurance Company. © 2011 HealthPlus of Michigan LCS 20110314-NEWS--0008-NAT-CCI-CD_-- 3/11/2011 2:24 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS March 14, 2011 A sale of Icahn’s Federal-Mogul stake would be juicy to PE firms

BY DUSTIN WALSH Lazard Ltd. to work toward the stone antifreeze, Fram filters and CRAIN’S DETROIT BUSINESS process. Autolite spark plugs. Icahn pulled Federal-Mogul out Late last year, Rank acquired Carl Icahn’s possible sale of his of bankruptcy in 2008 and owns 75.7 Evansville, Ind.-based UCI Interna- majority stake in Southfield-based percent of the company. Federal- tional Inc. for $605 million. UCI was Federal-Mogul Corp. (NASDAQ: Mogul shares were trading Thurs- previously controlled by another FDML) could day afternoon at $24.01, making the private equity firm, New York- come at the right company worth approximately $2.4 based The Carlyle Group. time to garner billion. Icahn’s stake is worth ap- Federal-Mogul could play well in interest from proximately $1.8 billion. the portfolio of New York-based major private eq- Federal-Mogul’s business units Blackstone Group LP — which also uity firms, ac- are diverse, which makes the stake controls Livonia-based safety tech- cording to local particularly attractive to private nology supplier TRW Automotive Inc. experts. equity firms, said William Wildern, The Carlyle Group represents an- Last week, CEO of Farmington Hills-based other potential buyer, as acquiring Reuters reported business advisory firm Hydra Profes- Federal-Mogul could boost its auto- that billionaire sionals LLC. motive portfolio, which includes Icahn New York in- “A company like Federal-Mogul Howell-based Diversified Machine Inc. vestor Icahn may sell his control- really invites the possibility of a and Plymouth-based Metaldyne LLC. ling stake in the supplier of brake major play involving a single pri- However, Carlyle has been focus- pads, pistons, spark plugs and wind- vate equity firm,” he said. ing its acquisitions over the past 12 shield wipers and has hired New Federal-Mogul has 26 registered months in Europe and Asia, most York-based financial advisory firm trademarked brands — including recently acquiring Japanese bear- Wagner brakes, ANCO wiper ings parts maker Tsubaki Nakashima blades and Champion spark plugs Co. for approximately $854 million, — each likely worth something on Dow Jones reported. the market, Wildern said. Other private equity firms on the “There’s a lot of flexibility with short list for Federal-Mogul are: Federal-Mogul and a PE (private eq- Bethesda, Md.-based American Capi- uity) firm can come in and start tal Ltd., New York-based Kohlberg shaving off parts and acquire other Kravis Roberts & Co. LP and Toronto- parts to solidify the core business.” based Onex Corp. Federal-Mogul’s automotive af- The $1.8 billion price tag puts termarket business would likely re- most automotive suppliers out of main the core, as private equity the running for the majority stake, continues its plunge into that mar- Wildern said. ket. The automotive aftermarket is “A supplier would have to have a $300 billion industry and roughly nearly $2 billion in capital and most 250 private equity firms have in- just don’t,” he said. “Private equity vested $5 billion in the industry has deeper pockets and more flexi- during the past five years, he said. bility.” Billionaire mogul Graeme Hart’s Federal-Mogul’s $2.8 billion in New Zealand-based The Rank Group debt likely will keep other automo- is a potential buyer, said Kevin tive suppliers, still recovering from Marsh, partner at Birmingham- the recent industry collapse, away based financial advisory firm Angle from the deal, Wildern said. Advisors LLC. Federal-Mogul declined to com- “The Rank Group is making a big ment on the reports, calling it “spec- push in aftermarket in the U.S., and ulation and rumor.” a possible Federal-Mogul sale has to Icahn purchased unsecured Fed- be on their radar,” he said. eral-Mogul bonds before it exited In January, Rank acquired Mor- bankruptcy in 2007 and later ristown, N.J.-based Honeywell Inter- swapped them for equity as part of national Inc.’s consumer products the company’s reorganization. group in a cash deal valued at $950 Dustin Walsh: (313) 446-6042, million. The group consists of Pre- [email protected]

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March 14, 2011 CRAIN’S DETROIT BUSINESS Page 9

PUBLISHER’S NOTEBOOK

GRID70 in CRAIN’S MICHIGAN BUSINESS Grand Rapids Mary Kramer Young talent reshapes cities The headline read, “Poll: Majority of Michiganders say Detroit is key to state’s success.” Know and tell NATHAN SKID/CDB But when you looked closely at the results of the Detroit Free Press/WXYZ-Channel 7 statewide poll, released March 6, only 32 percent said Detroit’s success is Companies find safe place to share secrets for mutual benefits essential to Michigan’s. An additional 40 percent described it as BY MATTHEW GRYCZAN “important but not essential.” CRAIN’S MICHIGAN BUSINESS Still, when you add up the results, more than 70 percent of RAND RAPIDS — In a Michiganders are saying “Detroit building punctuated with matters.” G spires that rise like excla- Even with a population under mation points, a team 900,000, Detroit is still the state’s plotting the future of largest city, and its reputation Amway Corp. discussed influences the reputation of the confidential research whole state. about the demograph- Detroit has huge challenges: ics of its Southeast — short for poverty, illiteracy, crime and Asian customers — Grand staggering budget and financial Rapids In- issues, like pension liabilities for all within listening workers and retirees. range of Steelcase Inc. novation & Design But like a lot of Michigan, its future researchers. will depend on shaping a new mind- A month earlier at and the set to produce new and better results. the site, dubbed GRID70, Steelcase build- I’m lucky to have lived and worked in shared trade secrets with Wolverine ing’s ad- five Michigan communities. I grew World Wide Inc. on how to dress of 70 Ionia up in Grand Rapids, graduated from control odors from ce- St. — may become a template. Grand Valley State University and ments used in their prod- Mike Maier, president of Rock- had a journalism career that included ucts — a problem common ford Development Group LLC, which stops in Grand Rapids, Kalamazoo, to footwear and office fur- owns and manages the GRID70 Jackson and Ann Arbor before niture manufacturing. building, says his company is landing in Detroit 21 years ago. This week, researchers considering launching the con- And in both Grand Rapids and from all three companies and cept in fast-growing markets such Detroit, you find young Meijer Inc. will convene to as Austin, Texas. entrepreneurs who are intent on But it’s not the building that building businesses and lives on share sensi- their terms. They are reshaping the tive data — makes GRID70 unique, Maier says. Cherry Hill neighborhood in Grand what they It’s the commitment by executives Rapids as much as they are know about to bring a new culture of corporate Corktown and Midtown in Detroit. Generation Y — collaboration to West Michigan. There’s much talk about “keeping in hopes that GRid70 is an outgrowth of dis- talent” in Michigan and building our they come away cussions by several members of future. But do policymakers really with fresh out- What’s Next, a committee of about listen to younger adults? looks on how to 30 corporate leaders who want to Phil Cooley, co-owner of the popular serve customers strengthen the area’s economy. Corktown restaurant Slows Bar BQ, in their early 30s last week was quoted in USA Today and younger — about investing $100,000 in a the so-called echo Breaking old habits 30,000-square-foot building he “I don’t care who you are — hoped to use for artists’ studios. By boomers. contrast, it would be tough to find GRID70 isn’t a when you are with one company, even 300 square feet in New York drop point for corporate espi- you can get stuck in the same pat- for that price. onage; it’s a pileup of “happy acci- tern of thinking,” says Seth Starn- When Crain’s held a contest last dents” where four — soon to be er, manager of business innova- year to develop an advertising five — of the largest tions consulting at Amway and a campaign to attract young talent, the employers in Michi- leader of the team studying South- low cost of living was one of the key gan have dis- east Asian demographics. “What themes for many entries. patched some of GRID70 allows you to do is to in- In that same USA Today article, their brightest teract with others who might Margarita Barry, founder of the I Am employees to have very different points of view Young Detroit website, talked about share confidential — because of the way their busi- the appeal of the edgy side of information freely ness works, because of the cus- Detroit, the kind of feeling you’re in tomers they serve, because of the a frontier and can try anything. in the hopes of finding true innovation. products they sell.” On March 23, Cooley, Barry and other social entrepreneurs from If the grand experiment comes See GRID70, Page 10 Detroit will be featured at IDEA: off as many think it will, GRID70 Detroit, a daylong event co- sponsored by Crain’s Detroit Amway Corp.’s Seth Starner, amid Business and its sister publication brainstorming ideas on sticky notes, Advertising Age. says GRID70 exposes its tenants to Cooley and Barry have counterparts different points of view. in Grand Rapids, too. Maybe next year we’ll take IDEA statewide. Mary Kramer is publisher of Crain’s VIDEO Detroit Business. You can write her at [email protected] Collaboration: Starner on the culture of GRID70, crainsdetroit.com/video NATHAN SKID/CRAIN’S DETROIT BUSINESS 20110314-NEWS--0010-NAT-CCI-CD_-- 3/10/2011 4:41 PM Page 1

Page 10 CRAIN’S DETROIT BUSINESS March 14, 2011 CRAIN’S MICHIGAN BUSINESS GRID70: Business tenants share secrets for mutual benefits ■ From Page 9 There shouldn’t be a lack of fresh Pennant’s website says it has an- president of growth initiatives at fore it draws solid conclusions. Participants write down ideas, viewpoints. The soon-to-be five ten- nual revenue of about $3.6 billion Steelcase and a point person on the then stick them under general cat- ants on three floors of the building and serves 3.8 million residents in project. egories to build a mosaic of under- in downtown Grand Rapids range 43 Michigan counties. Trinity and “The collaborative space not Collaboration takes time standing the problem. from a superstore retailer to a Pennant Health will be leasing only gives you a place to work as While GRID70 was announced “You need to be able to see health care provider network. about 6,000 square feet in GRid70. teams, but it also creates those op- about a year ago, participants say what’s in my head,” Starner says, The tenant with the largest portunities for happy accidents — the design hub is really about 6 “and the best way to do that is for space, Wolverine, posted revenue maybe strike up a conversation on months old, with the collaborative me to put it up on a board. I want last year of about $1.25 billion as Open-door policy an issue or come away with a dif- culture starting to jell only in Jan- to walk with this idea down to the one of the world’s leading manu- While the doors will be closed to ferent thought. uary. It was then that Starner in- third floor and ask someone, ‘What facturers and marketers of brand- the public Friday for the half-day “Just like companies that are on vited Steelcase researchers to join do you think?’ ed footwear and apparel. symposium on Gen Y, they will be the manufacturing side of things his Amway team analyzing data “Now, is what we are doing di- Steelcase is the world’s largest open wide to anyone on the three try to never leave capacity idle, we about Southeast Asian consumers. rectly related to a project that manufacturer of modular office floors of the want to use office space to its high- Amway hopes to distill a report Steelcase is doing? No. furniture, with 13,000 employees building, whose est capacity.” that details new socioeconomic “Do they (Steelcase researchers) and revenue last year of about offices are de- Because of the different space markets in Southeast Asia with walk away with added perspective $2.3 billion. signed to foster each tenant leases — Steelcase has high potential for direct selling, to the way they’re doing their job Rounding out the group are Ada- chance meetings about 1,200 square feet, while using guideposts such as size of and add value to the company? Ab- based Amway, subsidiary of $9.2 of people brim- Wolverine World Wide occupies the opportunity, how the corpora- solutely.” billion Alticor Inc. and a worldwide ming with ideas. about 10 times that square footage tion might approach the market leader in direct selling, with more On the fourth on an entire floor — Rockford De- and options for growth. than 3 million independent busi- floor, spacious velopment splits the cost of the “We use the collaborative space Wising up to Gen Y ness owners in more than 80 coun- rooms aptly common area. Half is shared a lot for sense-making — taking The Amway project led to anoth- tries and territories; and Walker- Maier named The Fo- equally among the tenants, while qualitative and quantitative data er collaboration: the Gen Y sympo- based Meijer, which employs about rum and SkunkWorks reinforce half is prorated by the percentage and synthesizing it into something sium put together by Starner and 60,000 full- and part-time workers at the sharing of ideas. Maier says a of total space each tenant occupies. understandable,” Starner says. Steelcase senior design researcher 195 supercenter and other format little more than 20 percent of the Steelcase has four full-time em- The two Steelcase researchers Melanie Redman. stores in five states. Industry ob- 28,000 square feet leased by the five ployees assigned to GRID70, but as attending Amway sessions Starn- “Steelcase has done a tremen- servers pegged Meijer’s annual corporations is common space, many as 15 may use it as a work er has held on his project carry all dous amount of research on Gen Y, sales at $14.2 billion last year. and the interior design by Via De- space one or two days a week. the rights and privileges of an and we are coming at it from two On April 1, add to that mix Novi- sign Inc. in Grand Rapids encour- “We’ve had days when there are Amway employee when it comes to totally different perspectives with based Trinity Health and Pennant ages mingling. more than 50 people down there for challenging assumptions, offering different needs,” says Amway’s Health Alliance, a health care “What GRID70’s business model Steelcase meetings,” Malnor says. opinions and critiquing data. Starner. “When you boil it down, provider network sponsored by has allowed each company to do is Preliminary estimates on how At one such session two weeks we really are talking about the Metro Health Hospital in Wyoming, to take a much smaller space than well space is used in GRid70 are ago, the room looked as if dyna- same people. It’s a way to chal- Mich., and the University of Michi- maybe they would have leased on promising, Malnor says, but Steel- mite had blasted scores of brightly gan Health System in Ann Arbor. their own,” says John Malnor, vice case wants to collect more data be- colored sticky notes to the walls. See Next Page

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March 14, 2011 CRAIN’S DETROIT BUSINESS Page 11 CRAIN’S MICHIGAN BUSINESS

From Previous Page contend that there often is more laborative culture like GRID70. up to the discretion of those who classes in September. Accreditation lenge your assumptions and learn common ground between compa- “You can’t collaborate without collaborate. by the organization means that something about how you are us- nies than first meets the eye. trust,” Starner says. “There is a “I feel really fortunate to be courses offered in Grand Rapids ing the data that you have.” “Talk about a different perspec- confidentiality agreement between working with these companies, be- will be identical to those offered at Steelcase likewise sees value in tive with Meijer — I know nothing all four companies, but in practical cause each has such a high level of IIT’s Chicago home campus for pur- joint efforts. “We want to solve about the food business,” Starner terms, I know everyone here at my integrity,” he says. “It’s been one of poses of granting degrees. problems more quickly — ones you says. “Understanding of how retail sessions is going to be discreet with the great joys so far with GRID70.” Malnor says GRID70 has given wouldn’t have solved with your works and how they operate on such the information. They are here for Besides serving as a center for the community a rallying point. own blinders on,” says Malnor. very small profit margins — how do insight, not to walk off with another sharing ideas, GRID70 is expected “One broadly held sentiment is The companies may even con- they do that, how do they make a company’s ideas.” to house a new master of design that West Michigan has changed a duct some research jointly and profitable company out of that?” Malnor breaks the proprietary methods program offered in West lot in the past 15 years, and maybe share the cost, he says. Says Steelcase’s Malnor: “Like nature of the discussions into two Michigan by the Illinois Institute of we haven’t done as good a job as That spirit of cooperation was us, Meijer has a big global supply categories: patents and trade se- Technology’s Institute of Design. we could in showing those changes the basis of meetings a few weeks chain. And on some levels, we are crets, and plans that are confiden- Starner says the program recent- — or taking advantage of those ago where Steel- all product-based companies that tial until they become a reality. ly received accreditation from the changes ourselves. So when we case and are also experience-based.” Patents pending or trade secrets North Central Association Commission bring new people in downtown and Wolverine mate- come under strict rules that are of- on Accreditation and School Improve- then we show them GRID70, it’s rial experts ten crafted case by case, he says. ment’s Office of Postsecondary Edu- pretty compelling.” started to share It goes bust without trust Confidential information such as cation — a necessary milestone for Matthew Gryczan: (616) 916-8158, best practices in There’s a key element to any col- the launch of a venture is left more the program as it gears up to offer [email protected] fastening materials with ce- ments and sewing, says Robert Koenen, Koenen vice president and general manager of Wolver- ine’s Cat Footwear division. “You get so many great ideas that are outside of your own path, things really start to bubble up,” Koenen says. “We are now planning more frequent meetings.” He credits GRID70 with helping to break down walls and foster new creativity within Wolverine. About six months ago, the company moved more than 35 designers serving 11 brands of footwear from its Rockford headquarters to the third floor of GRID70. Wolverine licenses the Harley- Davidson name for a line of lifestyle footwear. “When the design groups were located in Rockford, we did not bump into each other or even know the designers in the other groups,” Koenen says. That all changed when the Cat brand — licensed from Caterpillar Inc. — lost a designer in London. Through conversations and friend- ships formed at GRID70, the division learned that a designer in the Harley group could try the work. The result: a new line of sandals launching in spring 2012 with a “whole fresh attitude, looking at Cat from the outside in,” Koenen says. “It was fantastic because she brought exactly what we needed.” And Meijer makes 4 Meijer looks forward to joining the three other tenants when it completes its first-floor renovation, which will include kitchens for testing its private-label foods and other products. Thirteen employees will be assigned to the space when it’s completed in late March or early April, says Frank Guglielmi, Meijer director of public relations. Guglielmi says Meijer will use the space to develop products, packaging, presentation and more, possibly even hosting test panels working on new items. “(CEO) Hank Meijer and (Presi- dent) Mark Murray were immediately interested because innovation is a key driver in the company,” Guglielmi says of GRID70. “The mind-set of Meijer from the top down is to take chances.” It remains to be seen how much interaction Meijer and Pennant Health will have with the three other tenants, particularly because their customers are based in the Midwest while Steelcase, Amway and Wolverine serve customers globally. But Starner and Malnor 20110314-NEWS--0012,0013-NAT-CCI-CD_-- 3/10/2011 4:18 PM Page 1

Page 12 CRAIN’S DETROIT BUSINESS March 14, 2011 CRAIN’S MICHIGAN BUSINESS Dialing for dollars: Test runs hint at biz need for apps

BY MATTHEW GRYCZAN whether, for food retailers, phone today already would rather use serving West Michigan. CRAIN’S MICHIGAN BUSINESS apps become as necessary to doing their smart phones to check on to- In addition to basics such as business as having websites. day’s blue plate special or find menus, hours of operation and lo- GRAND RAPIDS — Over the Apps are programs with signifi- which grocery aisle has the bread cations, the Gilmore app will link next few months, West Michigan cant computing power that are crumbs than ask a waiter or store to the Foursquare app so a user will become a testing ground for stored on cell phones. What makes associate. can find friends and invite them to how consumers use smart phones apps attractive to smart-phone socialize. to order meals at restaurants, owners is their ease of use — the While that feature may seem like share news about specials at a gro- fewer clicks or touches to get infor- An appetite for apps overkill in a small restaurant on a cery store or navigate through a mation, the better. In April, The Gilmore Collection slow night, it takes on new signifi- Meijer Inc. supercenter. With an estimated 500 million Corp. in Grand Rapids expects to cance when someone wants to find While hundreds of thousands of smart phones in use worldwide to- unveil a free app for Apple’s friends visiting a 70,000-square-foot, Engelsma Dowdy applications and games are avail- day and that number expected to iPhone that will enable users to four-story building that houses tion’s B.O.B. restaurant last week in able now for smart phones, what quadruple by 2015, experts say an call up information on any of com- eight restaurants, bars and night- celebration of Fat Tuesday. makes the Grand Rapids experi- app is going to be in just about pany’s 25 restaurants, nightclubs clubs packed with people — which The Gilmore Collection, estab- ence worth watching is to see everyone’s future. Plenty of people and catering and banquet centers was the case at The Gilmore Collec- lished in 1976, has restaurants in metro Grand Rapids, Grand Haven and Redstone, Colo., and employs about 600 full- and part-time workers. “Gilmore’s got great restaurants,” says Jonathan Engelsma, an associate professor researching mobile technology at Grand Valley State University who oversaw graduate students who created the app. “So if my wife and I were going out and we wanted to pick a nice restaurant, I probably The Gilmore run the Gilmore app Collection’s before I’d run Ur- iPhone app banspoon or Open Table because they can give you too much information.” Says Matt Dowdy, creative director at The Gilmore Collection: “If you want to adapt to a society that is turning to the Web to advertise, then you accept that people are ac- cessing the Web on their mobile phones and market accordingly.” Dowdy draws a strong distinc- tion between using a phone app and calling up a restaurant’s website on a smart phone. A phone app provides less information but in- teracts much easier than the Web, such as automatically calling a restaurant to make a reservation. “You can’t just take what’s on your regular Web page and copy that to the app,” Dowdy says. “There’s just too much data.” Engelsma says some research indicates a company can lose 10 percent of its audience using a computer or smart phone with every click or interaction the user is required to make. Because an app doesn’t use a Web browser, it requires many fewer steps in searches. Dowdy concedes that The Gilmore Collection probably wouldn’t have paid to create a phone app because of development costs. But it sees value in learning more about its customers’ dining experiences — particularly how they use Foursquare. So when GVSU offered to develop the app for free as a research tool, the company jumped at the chance. If the experiment is successful, the company may pay to have apps written for the Android and Black- Berry smart phones, he says. What’s the latest in aisle 7? Giving customers up-to-the- minute information on food specials is key to a free app for Android See Next Page 20110314-NEWS--0012,0013-NAT-CCI-CD_-- 3/10/2011 4:19 PM Page 2

March 14, 2011 CRAIN’S DETROIT BUSINESS Page 13

CRAIN’S MICHIGAN BUSINESS Advertisement Why is “Placemaking” picture-perfect for Michigan’s economy?

Neighborhoods, cities, regions and states across America are taking notice of how important “place” is in the economic development equation. Michigan is no exception.

To revitalize Michigan we must examine our state through a new lens, taking into account the types of places where New Economy workers,

MATT GRYCZAN/CRAIN’S DETROIT BUSINESS entrepreneurs and businesses want to locate, invest and expand. President Jeffrey VandenBerge says Forest Hills Foods Inc. hopes to boost This approach is commonly described as a “sense of place” or just business and learn more about customers through an app for Android phones. “placemaking.” It’s a simple concept really, based on a single principle – talented and young people settle in places that offer the amenities, social From Previous Page “We are finding there are people who would prefer to use their and professional networks, resources and opportunities to support thriving phones being launched this month smart phones to find something in lifestyles. Michigan can attract and retain talent-based workers by focusing by Forest Hills Foods Inc., an old-line the store rather than ask someone, on how best to utilize our regional communities’ unique placemaking assets supermarket serving southeastern just like there are people who love such as squares, plazas, parks, streets, green spaces and waterfronts. Grand Rapids. The 50,000-square- the self-scan checkers, and there foot supermarket and fuel station, are people who refuse to use Our job begins by working together to build and maintain quality places in established in 1959, employs about them,” says Frank Guglielmi, Mei- each region of Michigan that will reinvent our state for the 21st century. 250 full- and part-time workers. jer’s director of public relations. Like The Gilmore Collection, “Basically, we Don’t just take our word for it. Forest Hills Foods used free devel- want to serve Ask Cynthia Kay, founder of a high-definition media production and opment work from GVSU to tap every type of into how its customers use social customer, and communications consulting company. networks, says company President we want to make Jeffrey VandenBerge. One of the the shopping ex- Kay’s six-person firm’s clients include multinationals like Herman Miller, primary uses of the app will be to perience as easy Amway Global, Siemens Industry, Novartis, Wiley Publishing, as well as inform smart-phone users about as possible.” educational institutions like Michigan State University, Grand Valley State daily specials, which they can Meijer is now University and Hope College. share with family and friends via enhancing the e-mails, text messages, Twitter Find-It app, Guglielmi and Facebook. launched last “In a sense, it’s trying to encour- August, to “add more functionality age your customer into becoming and increase the number of applic- an advocate for your business,” able stores,” Guglielmi says. “We VandenBerge says. “We should plan to eventually have a level of then be able to track which of functionality that will work with- those conduits are being used and in all Meijer stores.” get a sense of how the consumers Meijer, based in Walker near talk with each other.” Grand Rapids, operates in five She could have opened her state-of-the-art shop anywhere. All of that information becomes states, with its 195 stores ranging Kay chose Grand Rapids because of her belief that a vibrant community is valuable as Forest Hills Foods and from supercenters to smaller-format vital to success – not just to her corporate bottom line but to the quality of life other retailers begin to experi- stores of about 100,000 square feet. her family, employees and neighbors proudly enjoy. ment with digital direct-to-con- Engelsma says the Find-It app sumer channels in addition to tra- appears to have been well-received “Our downtown is a place where people want to be,” she says. ditional methods of advertising by consumers, with complaints “You’ll find students, young professionals, entrepreneurs and corporate types through print fliers. largely centering on the fact that it It may be possible for Forest isn’t available yet in many stores. out and about networking and socializing, in cafes, restaurants and parks. Hills Foods to use its app to sup- “One Meijer store probably has We get to rub shoulders, rub ideas together, and the magic that results is port buy-local initiatives by allow- more than 10,000 items in it, and good for business. ing shoppers to scan bar codes and there’s a lot of flux with seasonal learn more about the suppliers be- items moving in and out,” he says. “And the arts scene in Grand Rapids is a big part of it all. From museums to hind the items. “How are you going to keep a data- Art Prize, it’s an energizing environment where things can and do happen. The app already helps users find base up to date with that many prod- When you’re a part of a community like this, you want to become a part of it items in the store. And Vanden- ucts changing? That’s got to be an and give back – that’s why we donate our services to many nonprofits. Berge hopes, through the app’s incredibly hard problem to solve.” use, to cull information about how If another digital shopping ini- It’s part of the cycle that brings people and ideas together.” items are displayed — as long as it tiative by Meijer is any gauge, doesn’t get too heavily used. Find-It may have widespread use. The Small Business Association of Michigan (SBAM) and the Michigan State “We are a service business, and Meijer’s mPerks program Housing Development Authority (MSHDA) share Cynthia Kay’s belief: part of our business model is to launched in September for digital Placemaking matters. have people on the floor to answer coupon clipping that can be used at questions,” he says. “However, all the chain’s stores. It is averaging Together, we are helping Michigan’s state and local governments eliminate there are certain people who don’t about 5,000 new users a week, with barriers to placemaking, leverage private investment, promote diverse want to interact with other people, a current total of about 175,000 par- housing choices and mixed-use development, spur alternative or maybe heavy users of the ticipants, Guglielmi says. transportation, embrace cultural activities and cultivate green spaces. phones. So it will be interesting to A user creates an account with a see how much the map function re- mobile phone number, then clips The best thinking about successful communities and regions ally gets used.” coupons digitally. During check- out at a Meijer store, the shopper points to one conclusion. Creating vibrant, attractive public inputs the mobile phone number, spaces is not just a winning economic strategy. Meijer’s app finds food, your car and the coupons are automatically That same dichotomy — digital deducted from the bill. Placemaking is picture-perfect for Michigan’s return to prosperity. age vs. traditional shopper — is “My contention is that retailers making itself apparent at five Mei- need to build experiences that are jer stores in metropolitan Grand specific to their venues and give SMALL BUSINESS Rapids that are test locations for users just what they want while AssociationA of MICHIGAN the corporation’s Find-It app for they’re in their stores,” Engelsma Focusing the power of small business. Apple and Android devices. Shop- says. “Having an app specifically pers can use the free app to find for your business appears to do products in the stores, provide in- just that.” To learn more about Michigan placemaking, go to: michigan.gov/mshda formation on sale items and even Matt Gryczan: (616) 916-8158, find where they parked. [email protected] 20110314-NEWS--0014-NAT-CCI-CD_-- 3/10/2011 4:17 PM Page 1

Page 14 CRAIN’S DETROIT BUSINESS March 14, 2011 CRAIN’S MICHIGAN BUSINESS

• The largest health care focused CEO’s determination, law ﬁrm in the nation. • Over 40 years in the health law business. new owners give Saginaw • More than 150 attorneys serving health care clients. • Representing over 500 health care auto supplier a future organizations nationwide.

DAVID SEDGWICK turned Saginaw Steering Gear — CRAIN NEWS SERVICE now named Nexteer — to GM in 2009. Padlocked plants and windswept The toughest part of the reorga- parking lots are common sights in nization occurred last June, when Michigan’s industrial landscape. Nexteer’s hourly workers rejected Bob Remenar, CEO of Nexteer a five-year wage freeze, with a $12- Inc., was deter- an-hour starting wage, down from mined to avoid $14. In 2003, Delphi’s starting wage IF IT’S HEALTH CARE that fate for his was about $28 per hour, excluding company, which benefits. Twelve dollars an hour is makes steering below the federal poverty level for systems in Sagi- a family of five. WE WILL BE THERE. naw. The proposed $12-an-hour con- Remenar tract originally offered individual For a comprehensive resource on reform-related stuck with Gen- health care coverage for new hires, regulatory developments visit hallrender.com/hcr. eral Motors but no family medical plan. After Remenar Corp.’s former Nexteer restored family coverage, in-house steer- the workers accepted the deal. ing-gear supplier through the Matt Beaver, vice president of bankruptcy of parent Delphi Corp.; UAW Local 699, says Remenar has through Delphi’s showdown with kept the union well-informed about the United Auto Workers union that company operations. Remenar cut starting wages by about half; holds meetings every other week and through the bankruptcy of with local UAW leaders and quar- GM, Nexteer’s main customer. terly meetings with members. 201 West Big Beaver Road | Suite 1200 | Troy, MI 48084 | 248.740.7505 www.hallrender.com Now, with a new Chinese owner, “Bob works with the UAW,” fresh capital and hot products, Nex- Beaver said. “I think highly of teer is back. Last year, GM sold him. I feel that he cares.” Nexteer to Pacific Century Motors, a A month after Local 699 ratified Chinese investment group with a the contract, GM sold Nexteer to long-term strategy. Pacific Century Motors, a joint Last year, Nexteer generated venture between Tempo Internation- sales of $2 billion, up from $1.6 bil- al, a Chinese maker of chassis lion in 2009, and Remenar expects parts, and Beijing’s municipal gov- sales to rise 10 percent in 2011. An- ernment. In November, Tempo other sign of health: Nexteer has dropped out of the joint venture. won contracts to supply electric While Nexteer boasted good power steering systems to an management, products and a com- unidentified Chinese automaker mitted workforce, the company’s and to French automaker PSA/Peu- Chinese investors deserve credit geot-Citroen. for taking the long view. When the Remenar has run Nexteer since deal was announced last July, Pa- 2002, when it was still known as cific Century Motors made three the Saginaw Steering Gear divi- promises: It would retain Nex- sion of Delphi, GM’s former in- teer’s current management, honor GRAND VALLEY STATE UNIVERSITY’S house supplier. When Delphi en- its union contracts and maintain tered bankruptcy in 2005, Remenar its headquarters in Saginaw. knew he couldn’t count on GM to The UAW’s Beaver and Remenar keep his factories busy. And a both say Pacific Century has kept post-bankruptcy Delphi planned to its word. The new owners have leave slow-growth product seg- kept a low profile in Saginaw, and ments such as steering systems. Remenar has focused on adding Ten days after Delphi filed for business. He is naturally upbeat, INITIAL PUBLIC bankruptcy protection on Oct. 8, and the role seems to suit him. 2005, Remenar asked for a meeting And he believes he has the right with Delphi’s leadership. product: electric power steering. He told his bosses that Delphi In contrast to hydraulic steering had too many mouths to feed, and units, which are always draining then he made his pitch: Instead of power from the engine off a drive OFFERING. being on the wind-down path, why belt, electric power steering con- don’t you give me a chance to save sumes energy only when the vehi- Saginaw Steering? cle is actually turning. Delphi President Rodney O’Neal Last year, electric power steer- agreed. ing generated 30 percent of Nex- After Delphi announced plans to teer’s total revenue, up from just 4 sell Saginaw Steering Gear in 2006, percent in 2002. Remenar expects Find your next hire through the GVSU the painful turnaround work be- it to generate 60 percent of Nex- gan. The company had good prod- Full-Time Integrated M.B.A. (FIMBA) Program. teer’s revenue by 2015. ucts and global operations, but With a slimmed-down organiza- costs were too high. tion, new owners with deep pock- Working with U.S. Bankruptcy ets and a product he believes in, Court and his Delphi bosses, Re- Remenar has the upbeat mien of a menar closed four plants — in salesman who has finally been un- Spain, Italy, France and Alabama. leashed. Our new accelerated M.B.A. program is available to business graduates with Saginaw Steering Gear also laid off “This company has gone through fewer than three years of experience. You can help groom these future leaders a third of its salaried workforce a lot of uncertainty over the last five and keep more talent in West Michigan by participating in our fellowship and handed off its pension obliga- years,” he said. “We started with a program. To learn more, visit www.gvsu.edu/grad/ﬁmba or call 616.331.7400. tions to the federal Pension Benefit troubled business, and we trans- Guaranty Corp. formed it. We survived.” Still seeking a buyer, Delphi re- From Automotive News 20110314-NEWS--0015-NAT-CCI-CD_-- 3/10/2011 4:16 PM Page 1

March 14, 2011 CRAIN’S DETROIT BUSINESS Page 15 CRAIN’S MICHIGAN BUSINESS ‘We tried to keep it real’ SPREAD Budget-balancing game not for faint of heart

BY SHAWN WRIGHT SPECIAL TO CRAIN’S MICHIGAN BUSINESS YOUR THE TOP TARGETS If you think these Since Gov. Rick Snyder un- Want to take a crack at balancing “ veiled his proposed budget last Michigan’s budget? Visit thecenterformichigan.net/you- are easy month, many around the state balance-the-state-budget to try it. have spoken out on everything Here are the five most popular choices, from the proposed cuts to higher strategies players of the online education to the elimination of al- game have used: you WINGS most all tax credits and the dis- 1. Raise the beer tax to 6 cents mantling of the film incentive proper bottle from 2 cents, and the should gram. Everyone, it seems, has an wine tax to 3 cents a liter from a opinion. penny. play the This is one reason that the Cen- 2. Extend the sales tax to personal ter for Michigan in Ann Arbor cre- services, which lowers all sales game. ated “You Balance the State Bud- taxes to 5.5 percent from 6 ” get,” an online game that percent but taxes many new Jeff Williams, launched Feb. 24. services, including home and car Public Sector Consultants repairs and maintenance, cable The idea came from John Be- and satellite TV, legal services and that, even today, when the words bow, executive live entertainment. director of the ‘billion’ and ‘trillion’ are in our vo- 3. Adopt Gov. Rick Snyder’s plan center, a non- for concessions from state cabulary, we don’t know what it profit think workers, which amounts to $3,200 really means until you have to find tank, and Jeff per worker in lower wages or higher ways to cut something.” Williams, CEO benefit co-pays. That’s an average Said Bebow: “If you play this of Public Sector cut of about 3.8 percent per budget game, you’re going to be Consultants, a worker. faced with tough decisions. It’s not nonpartisan 4. Adopt Snyder’s plan to cut a picnic to be a legislator; it gets think tank in funding by 15 percent for 15 state- gut-wrenching when deciding to Lansing. funded universities, which is likely make these cuts for real.” Bebow to result in tuition increases. To help de- He also suggested that family 5. Across-the-board cuts in state sign the game, Williams tapped a members play the game together. emich.edu couple of computer programmers departments, meaning a 10 percent reduction in general “I did it with my wife,” Bebow who have done work for Public government expenses. said. “We reached different con- Sector Consultants. clusions on what to cut.” The inspiration came from dif- Not everyone who has played enough that everyone in Michigan ferent sources, Bebow and the game is pleased with the op- Williams said, with the primary will feel it,” Williams said. “If you tions given, which is evident by being an online game The New think these are easy choices, you some of the comments left at the York Times launched last Novem- should play the game. You can’t bottom of the game’s Web page. ber that dealt with federal budget get to $2 billion in one cut.” cuts. Participants are asked to click Some people wrote that the list of “We took ideas from Gov. Sny- categories where they can choose choices should have included a der’s budget and House and Senate cuts or tax increases. As they graduated income tax or further fiscal agencies,” Williams said. choose, a blue bar at the top of the examination of all current busi- “We tried to keep it real and very screen shows how close they are to ness tax credits, besides cutting current as well.” a balanced budget. the Michigan Business Tax. The first choice participants Participants can choose from Options to retain or cut the film must make is whether to cut busi- more than a dozen options in sev- incentive also weren’t available. ness taxes by $1.2 billion, as pro- eral categories: education, prison “With a project like this, you’re posed in Snyder’s plan. Depending and police, welfare and health never going to make everyone hap- on their choice, the budget cutters care, and public workforce. py,” Bebow said. “We put out rea- will begin with a $1.4 billion or “I’ve taken it a lot of times, dur- soned and documentable choices. $2.6 billion hole. ing the testing phase and after,” We wanted the game to be accessi- “The size of the hole is big Williams said. “What struck me is ble to everyone. This is probably going to be disappointing if you’re a budget wonk.” As of March 4, more than 6,000 Exceptional Leadership. people have played the role of legislator. Of those who played, near- Delivered. ly 62 percent balanced the budget. Nearly 49 percent chose to cut the Michigan Business Tax, and almost 79 percent relied on some sort of new tax or tax increase. The number of participants has surprised Williams and Be- Michigan’s bow. “We would’ve been happy with a Premier few hundred participants over Retained three weeks,” Bebow said. “You never know with this stuff. I think Executive it shows the high level of interest and how much people care about Search Firm this issue.” The game is scheduled to remain on the Center for Michigan website for at least a couple more weeks, Williams said. “We’re looking to possibly con- LLC tinue to update and relaunch the International Executive Search game as more budget issues come along,” he said. “We’re open to the Tel: +1.248.645.1551 • www.huntergroup.com idea of maintaining it until the budget is signed.” 20110314-NEWS--0016-NAT-CCI-CD_-- 3/10/2011 4:16 PM Page 1

Page 16 CRAIN’S DETROIT BUSINESS March 14, 2011 CRAIN’S MICHIGAN BUSINESS Plastics firm recognized for ‘green’ products, practices

BY PAT SHELLENBARGER In February, Cascade, head- stores in California, and it plans to SPECIAL TO CRAIN’S MICHIGAN BUSINESS quartered near Grand Rapids in expand its retail offerings of sus- Cascade Township, became the tainable products through a new di- GRAND RAPIDS — Maybe he state’s first certified “B Corpora- vision called Cascade for the Home. could make more money by concen- tion” — the “B” stands for benefit. Cascade is a leader among many trating on profits alone and ignor- That recognition was bestowed by West Michigan companies that fol- ing his company’s environmental B Lab, a Pennsylvania nonprofit low sustainable business practices, and social responsibilities, Cascade dedicated to using the power of said Birgit Klohs, CEO of the Right Engineering President and CEO Fred business to solve social and envi- Place, the Grand Rapids area’s eco- Keller conceded. ronmental problems. nomic development agency. In part- But the bottom line is not his Cascade, which began as a man- nership with the U.S. Environmental bottom line. ufacturer of plastic-injected parts Protection Agency, the Right Place “Our purpose is to make a posi- for the automotive and office fur- founded the West Michigan Green tive impact on society and the en- niture industries, is the largest of Suppliers Network to help businesses vironment and be financially suc- the 380 corpora- become more sustainable. Another cessful,” Keller said. “If you’re tions so far rec- organization, the West Michigan Sus- going to be around, you have to be ognized with the tainable Business Forum, also encour- financially successful. B certification. ages companies to become more en- “For me personally, I don’t know Keller, 66, vironmentally responsible. if I could run a business if I didn’t founded Cascade Being lean and green makes enjoy what it’s doing in the world.” Engineering in sense not only environmentally 1973 with six em- but also financially, Klohs said. “If ployees and a you take waste out of the system, goal of building a you’re not taking it to the landfill, company that and you’re saving on energy.” Keller treats its em- Royal Technologies, a Cascade ployees well. competitor based in Hudsonville, The business has grown to more southwest of Grand Rapids, sends than 1,000 employees in 14 sites little to the landfill, recycles oil worldwide. While continuing to and uses energy-efficient lighting, supply plastic parts to the auto and said Ed Bos, who heads the compa- office furniture industries, Cas- ny’s sustainability program. Simplifying cade has expanded to 15 business “Some people think when you go units in manufacturing and mar- green, it costs more money,” he keting — reflecting Keller’s leader- said. “That isn’t necessarily true.” ship in environmentally friendly He credited Keller and Cascade the World of Healthcare business practices such as using with leading a green revolution in recycled plastics in new products. manufacturing. In 2007, Cascade began making a “I think it’s very admirable that plastic filter filled with sand to pu- they are taking the lead and spend- rify water in developing countries. ing efforts on being green,” Bos said. Last year it launched a global safe- That leadership extends to civic water initiative with the Windquest commitments. Keller chairs the In an increasingly complex world, Wolverine Solutions Group (WSG) can make life a whole Group, a Grand Rapids-based pri- W.K. Kellogg Foundation board and vate investment fund. So far, more was named to the U.S. Commerce De- lot easier. With a variety of technology-driven marketing communications products and services all than 1,000 of Cascade’s HydrAid partment’s Manufacturing Council under one roof, it’s time to make WSG your single source supplier, freeingyou up to spend more time on bio-sand filters have been deliv- in 2004. He also is among 50 CEOs what really matters—your core business. ered to cholera-stricken Haiti. who formed Talent 2025, an effort to For years, Cascade has manu- attract and retain creative employ- factured plastic trash carts on ees in West Michigan. In the fall of For over 30 years, WSG has grown to become a One Touch Partner by providing creative, printing wheels. Last year, Jo-Anne 2002, Keller began teaching a class andproduction services to our Healthcare clients—as well as clients in many other industries. We Perkins, general manager of Cas- in sustainable business practices at are proud of our reputation of providing all our clients with innovative products, fueled by cutting cade’s Cart Solutions division, Cornell University, his alma mater. suggested the company begin “I didn’t have this epiphany,” he edge technologies coupled with WSG’s unrivaled dedication to customer service. molding pink trash carts and do- said. “I didn’t wake up one morn- nating $5 for each one sold to the ing and say, ‘I want to make sus- WSG offers our Healthcare clients the following products and services: American Cancer Society’s breast tainable products.’ We didn’t have cancer awareness program. a word for it back then.” Other Services: “It was an easy ‘yes’ when she Being sustainable is not easy, • • Statement Processing-Patient Billing Statements, Direct Marketing came and said, ‘I’d like to do this,’ ” Keller said. • EOB’s/EOPB’s, Check Printing and Processing Web Solutions said Keller, whose first wife died of “Closing a plant and firing some- breast cancer in 1988. body, those are easy decisions,” he • • Creative Services On line Electronic Payment and Billing Systems Cascade uses about 12 million said. But figuring out how to mini- • • Patient-Friendly Billing Statement Creation and Production Web Based Fulﬁllment pounds of recycled plastic each mize a company’s impact on the en- • • Enrollment Beneﬁt Kit Assembly and Distribution Online Print Solutions year, Keller said, and he hopes to in- vironment while making a profit? • crease that. The company recently That’s when creativity starts. • SPD Booklet Printing and Mailing Presorting • developed a process for painting That’s when it’s interesting.” • Open Enrollment Personalized Forms/Kit Production and Digital Printing plastic parts in the mold to reduce As a private company — Keller • Distribution List Acquisition the release of volatile organic com- and his family hold nearly all the pounds into the atmosphere. shares — Cascade does not release • Personalized targeted health care direct mail and other Three years ago, the company financial figures. But he said that marketing services added a line: small wind turbines “after a little setback in 2009,” Cas- for homes, communities and busi- cade’s growth rebounded last year nesses. Cascade manufactures the by 17 percent with revenue of a lit- Contact us today to discover how WSG can optimize your business turbine rotors and assembles them tle more than $250 million. The to generators built by Swift Wind company is on track for another 17 processes. [email protected], 313-871-2620 Turbine. Through a new division, percent increase this year, he said. Cascade Renewable Energy, formed Whether he could make more 1601 Clay Street, Detroit, MI 48211 • www.wolverinemail.com last July, the company sells wind money by focusing only on the bot- turbines and solar panels made by tom line is not something he companies in Oregon and China. thinks about, Keller said. Last year, Cascade began selling “I don’t have an ambition to die wind turbines through 21 Lowe’s with the most toys.” 20110314-NEWS--0017-NAT-CCI-CD_-- 3/10/2011 4:15 PM Page 1

March 14, 2011 CRAIN’S DETROIT BUSINESS Page 17 CRAIN’S MICHIGAN BUSINESS Manufacturing leads state job growth

BY AMY LANE eas such as fabricated-metal manu- 15,000 jobs from January 2010. CAPITOL CORRESPONDENT facturing and machinery manufac- Michigan’s unemployment rate turing, said Jim Rhein, a labor mar- in January was 10.7 percent, down LANSING — In small but en- ket analyst for the department. from December’s 11.1 percent rate couraging steps, some hard-hit Furniture manufacturing, and the lowest monthly jobless Do the sectors of Michigan’s economy are which had been showing declines, rate for the state since the 10.6 per- adding jobs. “seems to be holding its own” and cent rate in December 2008. The manu- is up slightly, he said. Compared with a year ago, the CRAIN’S LIST facturing Another area reporting gains is state’s January rate was down 3 per- Michigan’s largest sector led construction. That sector added centage points, from 13.7 percent. Right Thing employers, Page 18 overall gains 6,000 jobs in January but began But only about half that decline in Michigan showing minor increases in the is due to job growth, Rhein said. In payrolls in January, adding 20,000 last quarter of 2010. addition, fewer unemployed peo- jobs and continuing growth that Over the year, Michigan payroll ple are searching for jobs, which occurred throughout 2010, accord- jobs grew by 69,000, or 1.8 percent. contributed the remainder of the Ethos Week ing to the latest data from the Manufacturing posted the largest over-the-year change in the unem- Michigan Department of Energy, La- increase, adding 36,000 jobs, fol- ployment rate. bor & Economic Growth. lowed by professional and busi- “So it’s a good-news, bad-news March 14 -18 Although many of the manufac- ness services with 19,000 new jobs. situation,” Rhein said. “This big turing gains were auto-related, “a Education and health services drop is not all due to just employ- good portion of the over-the-year added 15,000 jobs. ment gains, unfortunately.” cob.emich.edu growth has actually been outside of Employment loss was concen- Amy Lane: (517) 371-5355, transportation equipment,” in ar- trated in government, which shed [email protected]

BRIEFLY SBAM scorecard: State strong lowed by tourism and recreation Rapids chamber since January (14 percent), shipping (8 percent), 2004, managing operations that in- in R&D, weak in business growth agriculture (8 percent), science and clude a 27 employees and an annual First, the good news: Michigan is engineering (2 percent), utilities budget of more than $3 million. holding steady when it comes to fos- (1 percent) and mining (1 percent). At the Quad Cities chamber, tering an entrepreneurial climate, The Michigan Sea Grant is part which has joint offices in Moline, according to the latest Small Busi- of the National Oceanic and Atmos- Ill., and Davenport, Iowa, Baker WJR’s Paul W. Smith pheric Administration-National Sea heads an organization that has ness Association of Michigan Entre- EMU’s David Mielke preneurial Scorecard. Grant network of more than 30 uni- 1,800 member businesses, 34 em- And now the bad news: That versity-based programs. ployees and a $4.6 million budget. means Michigan is close to the bot- — Shawn Wright Baker assumes his new post tom in some key metrics, com- April 4, and Englehart said she pared with the rest of the country. Plastics firm gets tax break, will remain at the chamber The state’s strengths are in the through mid-April. She said she quality of its research and develop- to spend $53 million, add jobs has not yet made plans for her next ment capabilities, said Graham professional steps. The state is providing tax incen- — Amy Lane Toft, president of Florida-based tives to Bad Axe-based Gemini Group Growth Economics Inc. and a techni- Inc. to renovate, upgrade and ex- cal consultant to SBAM on the pand in Huron County. Gemini, Snyder to speak at Grand Rapids scorecard. All figures are from 2009. whose holdings include four plas- The state ranked 13th in univer- tics plants in Michigan, will invest chamber lunch April 11 sity spinoffs and ninth in private $53 million on machinery, physical Gov. Rick Snyder will speak lending to small businesses. The expansion and capital investments. about the role job providers play number of self-employed Michigan Company executives were not in revitalizing Michigan at a Grand residents has increased, which immediately available to discuss Rapids Area Chamber of Commerce Toft said is a good thing. But the how they plan to use the invest- luncheon April 11. state ranked 50th in small-busi- ment, but they noted the money will Chamber and community mem- ness payroll growth and general create up to 290 jobs. The state is bers are invited to attend the event, business growth, 45th in entrepre- providing $6.56 million in tax cred- which will take place from noon to neurial climate and 30th in entre- its, while local governments are 1:30 p.m. in the Ambassador Ball- Plan. Invest. Extend a legacy. preneurial vitality. considering incentive packages. room at the Amway Grand Plaza Hotel To see the scorecard online, vis- Gemini had considered moving in downtown Grand Rapids. For Find us at PMFA.com. it www.sbam.org and click on the operations out of Michigan, but more information or to register, vis- News section of the website. the financial support will help en- it www.grandrapids.org/govluncheon. — Nancy Kaffer sure continued growth, CFO T.L. — Shawn Wright Bushey said in a news release. Be- Report: 1.5 million jobs, $62B sides the new jobs, the tax credits UPCOMING BREAKFAST ROUNDTABLE: will retain 762 jobs across the Wisconsin firm plans to add up in wages linked to Great Lakes state, he said. The Michigan Eco- to 156 jobs in Owosso Twp. March 15 nomic Growth Authority last month More than 1.5 million U.S. jobs Reaching Financial Independence and Charitable Planning approved tax incentives for Gemi- Wausaukee Composites–Owosso are directly connected to the Great ni and 14 other companies. Inc., which makes composite com- Lakes, generating $62 billion in — Plastics News ponents for the construction, agri- wages annually, says an analysis by cultural equipment, medical, All roundtables will be held from 7:30-8:30 a.m. at 27400 Northwestern Hwy., Southﬁeld, MI 48034. Michigan Sea Grant, a collaborative transportation and wind energy effort of the University of Michigan Grand Rapids chamber finds industries, is planning a major Visit roundtables.pmfa.com to register. Seating is limited. and Michigan State University. capital investment at its location The two-page economic analysis new leader on Illinois-Iowa border in Owosso Township. updates a more extensive Michigan The Grand Rapids Area Chamber of The Wausaukee, Wis.-based com- Sea Grant report issued in 2009. Commerce has tapped a chamber pany plans to spend up to $1.9 million That report focused on the state’s executive in Illinois and Iowa as to expand and renovate the plant. economic ties to the lakes. The up- its next leader. Rick Baker, 46, The project is expected to create up date provides figures for all eight president and COO of the Quad to 156 jobs on top of 132 existing jobs. states that border the Great Lakes. Cities Chamber of Commerce, will be- The company received a Michigan INVESTMENT MANAGEMENT I *TRUST SERVICES According to the report, Michi- come president and CEO of the Economic Development Corp. Michigan *INSURANCE SERVICES I *TAX PLANNING gan has the highest number of jobs Grand Rapids chamber. He’ll suc- Business Tax credit, valued at that depend on the lakes — 525,886. ceed Jeanne Englehart, who in Oc- $783,909 over five years. The town- ESTATE PLANNING I WEALTH MANAGEMENT Manufacturing was responsible for tober said she would step down. ship board also approved a request BUSINESS TRANSITION I PHILANTHROPIC PLANNING 66 percent of the Great Lakes-linked Englehart has been president and for a local property tax incentive. QHHGTGFVJTQWIJCHſNKCVGUQH2/(# jobs, according to the report, fol- CEO of the 3,000-member Grand — Shawn Wright 20110314-NEWS--0018-NAT-CCI-CD_-- 3/10/2011 3:06 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS March 14, 2011

CRAIN'S LIST: MICHIGAN'S LARGEST EMPLOYERS State’s largest Ranked by full-time employees January 2011 for-profit employers Company Michigan Worldwide Address employees employees 1. General Motors Rank Phone; website Top executive 2011/2010 2011/2010 Type of business 38,835 State of Michigan Richard Snyder 43,616 43,658 State government 2. Ford Motor 1. Cadillac Place; Detroit 48202 governor 48,029 48,074 38,000 (313) 456-4400; www.michigan.gov 3. Chrysler Group General Motors Co. Daniel Akerson 38,835 209,000 Automobile manufacturer 22,431 2. 300 Renaissance Center; Detroit 48265 chairman of the board 41,828 215,000 4. Detroit Medical (313) 556-5000; www.gm.com Center* Ford Motor Co. Alan Mulally 38,000 163,000 Automobile manufacturer 9,904 3. 1 American Road; Dearborn 48126 president and CEO NA 159,000 5. Johnson Controls (313) 322-3000; www.ford.com 9,300 U.S. government NA 30,915 B 2,113,980 B Federal government 6. Dow Chemical 4. 477 Michigan Ave.; Detroit 48226 27,696 1,917,515 5,918 (800) 688-9889 7. Comerica Bank University of Michigan Mary Sue Coleman 28,449 28,449 Public university and health system 5,812 5. Ann Arbor 48109 president 27,815 27,815 (734) 764-1817; www.umich.edu 8. Dow Corning 4,500 Trinity Health Joseph Swedish 23,145 44,920 Health care system 9. Spartan Stores 6. 27870 Cabot Drive; Novi 48377-2920 president and CEO 23,145 45,572 (248) 489-6000; www.trinity-health.org 4,102 10. Amway Chrysler Group LLC Sergio Marchionne 22,431 52,488 Automobile manufacturer 4,000 7. 1000 Chrysler Drive; Auburn Hills 48326 CEO 19,423 47,470 (248) 576-5741; www.chryslerllc.com 11. Herman Miller 3,700 Henry Ford Health System Nancy Schlichting 19,963 19,963 Health care system 12. TRW Automotive 8. 1 Ford Place; Detroit 48202 president and CEO 18,473 18,473 (800) 436-7936; www.henryford.com Holdings 3,360 U.S. Postal Service Jo Ann Feindt 19,068 NA Postal service 13. Steelcase 9. 1401 W. Fort St.; Detroit 48233-9998 vice president of area operations NA (313) 226-8607; www.usps.gov 3,276 14. Pfizer Spectrum Health Richard Breon 16,131 16,131 Health care system 3,000 10. 100 Michigan St. NE; Grand Rapids 49503 president and CEO 15,027 15,027 (866) 989-7999; www.spectrum-health.org 15. General Dynamics 2,920 Philip Incarnati 15,750 15,750 Integrated health care delivery system McLaren Health Care Corp. 16. Gentex 11. G-3235 Beecher Road; Flint 48532 president and CEO 15,000 15,000 (810) 342-1100; www.mclaren.org 2,874 17. Gordon Food Patricia Maryland 13,140 13,140 Health care system St. John Providence Health System Service 12. 28000 Dequindre Road; Warren 48092 president and CEO 12,995 12,995 (866) 501-3627; www.stjohnprovidence.org 2,510 18. Stryker William Beaumont Hospitals Gene Michalski 12,437 NA Health care system 2,310 13. 3711 W. 13 Mile Road; Royal Oak 48073 president and CEO 14,495 (248) 898-5000; www.beaumonthospitals.com 19. IAC Group 2,243 City of Detroit Dave Bing 11,396 C 11,396 C City government 14. 2 Woodward Ave. mayor 12,472 12,472 20. Auto-Owners Coleman A. Young Municipal Center; Detroit 48226 Insurance (313) 224-3700; www.ci.detroit.mi.us 2,112 Detroit Public Schools Robert Bobb 10,948 10,948 Public school system 21. Art Van Furniture 15. 3011 W. Grand Blvd. Fisher Building; Detroit 48202 emergency financial manager 13,039 13,039 (313) 873-3111; www.detroitk12.org 2,055 22. MotorCity Casino Michigan State University Lou Anna Simon 10,725 NA Public university 2,040 16. East Lansing 48824 president NA (517) 355-1855; www.msu.edu 23. Lacks Enterprises 2,000 Detroit Medical Center Michael Duggan 9,904 9,904 Health care system 23. Haworth 17. 3990 John R; Detroit 48201 president and CEO 11,882 11,882 (313) 745-1250; www.dmc.org 2,000 23. Kellogg Johnson Controls-automotive operations Beda Bolzenius 9,300 142,000 Automotive supplier, building control systems and 2,000** 18. 49200 Halyard Drive; Plymouth 48170 president, automotive experience NA 130,000 facilities management (734) 254-5000; www.johnsoncontrols.com *On Dec. 31, 2010, DMC was acquired by Vanguard DTE Energy Co. Gerard Anderson 9,289 9,845 Energy and energy-technology company Health Systems, a Nashville- 19. 1 Energy Plaza; Detroit 48226 president and CEO 9,577 10,292 based investor-owned (800) 477-4747; www.dteenergy.com hospital company. DMC is now owned and operated by Consumers Energy Co. John Russell 7,522 7,522 Electric and natural gas utility VHS of Michigan, a 20. 1 Energy Plaza; Jackson 49201-2276 president and CEO 7,755 7,755 Vanguard for-profit (517) 788-0550; www.consumersenergy.com subsidiary. **Crain’s estimate Blue Cross Blue Shield of Michigan/ Daniel Loepp 6,972 6,972 Health care insurer 21. Blue Care Network president and CEO 6,992 6,992 600 E. Lafayette Blvd.; Detroit 48226 Want more? (313) 225-9000; www.bcbsm.com Purchase the list of the Wayne State University Allan Gilmour 6,272 6,272 Public university 125 largest employers 22. 42 W. Warren; Detroit 48202 president 6,183 6,183 in Michigan, other (313) 577-3577; www.wayne.edu Crain’s lists or our Book of Lists in Excel Oakwood Healthcare Inc. Brian Connolly 5,935 5,935 Health care system format at 23. 1 Parklane Blvd., Suite 1000E; Dearborn 48126 president and CEO 5,837 5,837 crainsdetroit.com. (313) 253-6000; www.oakwood.org Click on “Lists/Resources” on Andrew Liveris 5,918 50,154 Chemical manufacturer Dow Chemical Co. the top navigation bar. 24. 2030 Dow Center ; Midland 48674 chairman and CEO 5,748 52,268 (989) 636-1000; www.dow.com If you’ve never used this feature before, Comerica Bank Thomas Ogden 5,812 9,383 Financial services provider you’ll be prompted to 25. 500 Woodward Ave.; Detroit 48226 Michigan market president 5,526 8,940 set up an account. (248) 371-5000; www.comerica.com Should your company be on this list? This list of Michigan employers encompasses companies with headquarters in the state. Companies with headquarters elsewhere are listed with the address and top executive of their main Michigan office. This is not a Contact our data editor complete list, but the most comprehensive available. Unless otherwise noted, information was provided by the companies. Number of full-time employees may include full-time equivalents. NA means not available. Anne Marks at B As of Oct. 1, 2010. [email protected] or C As of Feb. 9, 2011. (313) 446-0418. LIST RESEARCHED BY ANNE MARKS AND PATRICE BUSHART 20110314-NEWS--0019-NAT-CCI-CD_-- 3/10/2011 3:06 PM Page 1

March 14, 2011 CRAIN’S DETROIT BUSINESS Page 19 Extra

People

Lisa Newman, M.D., MPH, a professor of surgery and director of the Breast Care Center at the University of All aboard Michigan Comprehensive Cancer Center, and Kenneth Jamerson, At St. John, co-management gives physicians stake in services M.D., a professor of Newman internal medicine and hypertension specialist at the BY JAY GREENE University of Michigan Cardiovascular CRAIN’S DETROIT BUSINESS Center, were among those listed by f there is one overriding theme in the Black Health magazine as the 25 Most Influential African-American Doctors in new five-year strategic plan under the Detroit area. I way at St. John Providence Health Sys- Newman’s research focuses on tem, it is working more closely with the disparities in breast cancer, including an 2,200 mostly private physicians on the aggressive type of the disease called Warren-based system’s six hospital triple negative breast cancer that occurs medical staffs to improve quality of care more frequently in African-American and expand business opportunities. women. Most hospital systems in metropoli- Jamerson is nationally known for tan Detroit, including William Beaumont research in treatment of hypertension. Hospitals and Henry Ford Health System He was selected to lead a study (See story, Page 21), are trying to work showing early aggressive treatment of more closely with their physicians as high blood pressure with combination health care reform begins to encourage medicines is more effective at inpatient and outpatient care coordina- preventing heart attacks and strokes. tion, reduction in hospital readmis- Deborah Whiting, sions and development of accountable- MSA, BSN, and Pam care organizations. Wong, B.A., MBA, But at the heart of St. John Provi- have joined the staff dence’s plan is the creation of separate of Greater Detroit operating companies — 50-50 owned by Area Health Council. physician investors and Whiting will serve the hospitals — to co-man- as vice president of age entire clinical service community health. In lines. this role, she will DAVID DALTON direct the While it’s not a new con- Tom LaLonde, M.D., chairman of St. John Cardiovascular Co-Management Co., and Diane Radloff, Whiting organization’s cept nationally, St. John president of St. John Hospital and Medical Center, represent co-management in the health system. collaborative efforts to improve the Providence is the only health status of Southeast Michigan. health system in Southeast Physicians stand to make money in Whiting has worked with the Detroit Michigan to co-manage an two ways. First, doctor investors will Health Department and Wayne County inpatient hospital clinical WHATISCO-MANAGEMENT? receive hourly rates based on fair mar- Health and Community Services. service — in this case, car- Under clinical services co-management, Wong will serve as director of diovascular care — in a a health system or hospital typically ket value for various management ser- membership relations, joint venture with a group owns the real estate and jointly vices, LaLonde said. They also receive communications, community of physicians. manages specific clinical services with incentive compensation based on sev- partnerships and fund development. The “The goal is to achieve doctors who practice there. en quality metrics, two efficiency met- With more than 30 years of public “ the highest quality and effi- Physicians buy shares in the new rics and one program development relations, marketing, communications goal is to ciency” with the co-man- company that total 50 percent metric. and external affairs expertise, Wong aged companies, said ownership. Hospitals own the other 50 “The incentive payments will have previously served as chief of staff for achieve Michael Wiemann, M.D., percent. three tiers, with the highest tier being Michigan’s superintendent of public president of Providence Hos- The service is co-managed through an as efficient as any hospital in the coun- instruction. the pital in Southfield. “We oversight board of equal numbers of try,” LaLonde said. “Doctors will be doctors and hospital officials. Efthemia Steele, clinical services need to be more tightly in- paid an hourly rate, like a consultant, coordinator for Meijer Inc., was named highest tegrated with the hospitals The physicians get fair-market pay, for time spent on committees and to op- usually hourly rates for operational and the Community Pharmacist of the Year and the doctors to achieve timize outcomes and incentives.” at the Michigan Pharmacists quality clinical management duties. They also this.” Ann Brandt, senior director with Association’s annual convention and are paid based on exceeding certain Health Care Appraisers in Delray Beach, Effective March 1, St. clinical performance measurements for exposition Feb. 25-27 at the Detroit and effi- Fla., said the consulting firm developed Marriott Renaissance Center. John Providence began op- various metrics. erating St. John Cardiovascu- a fair-market-value total payment Steele has been active in the ciency. amount for the St. John Providence American Diabetes Association, where ” lar Co-Management Co., said Madison Heights. Tom LaLonde, M.D., chair- Under co-management, each doctor physicians if they meet targets. she has hosted a number of expos, Michael “Based on the performance and tasks provided presentations and serves as man of the newly formed will purchase an unspecified amount of Wiemann, M.D., performed, we gave (St. John Provi- the current co-chair of the ADA Stomp company. shares in the company to total 50 per- Providence dence) a two-year opinion with an an- Out Diabetes committee. Hospital “Doctors want to do what cent ownership. The St. John hospitals is good for patients and will own an equal share. A board com- nual dollar amount that included base Laura Wagner, pay and incentives,” Brandt said. “(St. CEO of Bingham work with hospitals on a posed of equal numbers of doctors and John) can pay anything up to that Farms-based In- common goal,” said LaLonde, who also hospital administrators will jointly amount.” House Hospice and is chief of cardiology at St. John Hospital make operational decisions. Palliative Care, has and Medical Center, Detroit. “This is a If the company achieves its stated Doug Rich, vice president of strategy been appointed to great opportunity for us.” goals, improved quality could lead to a and business development, said St. the board of The company includes 44 cardiolo- lower mortality rate, fewer hospital-ac- John does not expect a return on in- directors of the gists and heart surgeons and two of St. quired infections and higher reimburse- vestment until the second year. Health Care John’s hospitals — St. John Hospital ment by government and private pay- In 2009, Grand Blanc Township-based Association of and St. John Macomb-Oakland Hospital, a ers. Increased efficiencies could lead to Michigan. two-campus facility in Warren and lower expenses and more patients. See Co-management, Page 20 Wagner 20110314-NEWS--0020-NAT-CCI-CD_-- 3/10/2011 3:05 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS March 14, 2011 Health Care Extra Co-management: Docs have stake in companies ■ From Page 19 Genesys Health System formed three co-management companies with about 60 physicians. Genesys and The goal is not to St. John Providence are sister hos- “ pital companies. Both are part of St. increase volume. It Louis-based Ascension Health, the largest Catholic system in the U.S. is to increase quality Now in its second year co-managing the three companies — cov- and reduce costs. ering cardiovascular, general ” surgery, and orthopedics-podiatry Chris Rossman, Foley Lardner and neurology — Genesys has ex- perienced positive financial, effi- back statutes and physician self- ciency, patient and physician sat- referral bans. isfaction and quality results, said “Generally, doctors can’t refer a interim CEO Betsy Aderholdt. patient to an entity where they For example, have a financial interest,” Ross- Genesys in- man said. creased first- Avoiding legal problems can be time surgical accomplished in several ways, in- case starts by 20 cluding setting up a written agree- percent, in- ment between the hospitals and creased rates of physicians, determining the com- history and pensation in advance and not ty- physical coming referrals to the financial incen- pletion by 10 tives, Rossman said. percent, in- “The goal is not to increase vol- Aderholdt creased conges- ume. It is to increase quality and tive heart failure core measures to reduce costs,” Rossman said. “A nearly 100 percent and reduced collateral goal is to attract high- coronary stents per angioplasty quality physicians to practice at procedure to 1.43 from 1.72, saving the hospital and possibly partici- hundreds of thousands of dollars. pate in the co-management compa- “We were in the 88 to 90 percent ny. This can lead to increased vol- level with the core measures, and ume, but it can’t be the goal.” now we are up to 99 and 100 per- LaLonde said it is easier for cent,” Aderholdt said. physicians at the University of Michi- Core quality measures are col- gan and Henry Ford Health System lected voluntarily from hospitals to work more closely with their by the Centers for Medicare and Med- health systems on quality projects icaid Services and are posted on the and share in financial incentives U.S. Department of Human Services because doctors in those systems Hospital Compare website, www. are mostly employees, as opposed hospitalcompare.hhs.gov. to independent private practition- CMS core measures include the ers. percentage of heart attack patients Brandt said many hospitals who receive an aspirin upon ar- have tried ways to improve quality rival in the emergency depart- and efficiency of their clinical ser- ment, whether an antibiotic is giv- vices by working closely with 6WDUW6DYLQJ en within an hour before surgery, physicians. whether discharge instructions “They can hire physicians to 7RGD\ZLWK(QHUJ\ are given to heart failure patients manage the service line, or take a and whether pneumonia patients co-management approach. There (IÀFLHQF\,QFHQWLYHV are given smoking cessation in- is not a one-size-fits-all (ap- structions before discharge. proach),” Brandt said. “There has From a financial standpoint, been a huge increase in employ- ITH COLDER TEMPERATURES, now is the Aderholdt said, the physicians ment arrangements. The key is to get the doctors motivated and time to start saving energy and saving earned back their original invest- W ment halfway into the first 18- working on the same page.” money by boosting the energy efﬁciency of your month contract, excluding hourly By late spring, St. John plans to natural gas heating system. consulting fees. When the first create four other co-managed com- contract ended last December, the panies in unspecified clinical ar- Incentives are available for: physicians earned a 2.5-to-1 return eas, Wiemann said. Two of the • &URNACEANDBoiler tune-ups on investment, she said. The hos- companies will be with physicians • Boiler modulating burner control retroﬁts pital almost broke even on its in- and hospitals in St. John’s western • Steam trap repairs vestment, she said. region that will involve Provi- • Programmable thermostats “The contracts were about dence Hospital and Providence Park Special programs offered for large and small businesses. $2 million in size, and our program Hospital in Novi. Two will be sys- evaluation showed that the hard temwide companies, he said. For more information dollars invested are worth it,” “We are looking in medical and Aderholdt said. “The level of doc- surgical areas for areas (in which) related to your business: tor loyalty also increased. It wasn’t we have high levels of confidence just the incentive payments. We we can improve care for large pop- www.consumersenergy.com are getting doctors who want to ulations of patients,” Wiemann work here.” said. (877) 607-0737 Once physicians in the market LaLonde said physicians under- e-mail: [email protected] started to hear about the improve- stand they want to help the hospi- ments at the hospitals, Aderholt tal improve efficiencies so there said, many have applied for privi- will be enough excess revenue to leges or have relocated to be closer invest in physical plant and equip- to the hospital. ment improvements. Chris Rossman, a partner with “You don’t need capital to im- Foley Lardner in Detroit, said hospi- prove quality, but you can im- tals and physicians can safely set prove efficiency,” LaLonde said. up co-management companies and Jay Greene: (313) 446-0325, 5220-C avoid violating federal anti-kick- [email protected] 20110314-NEWS--0021-NAT-CCI-CD_-- 3/10/2011 3:04 PM Page 1

March 14, 2011 CRAIN’S DETROIT BUSINESS Page 21 Health Care Extra Doctors’ status affects how hospitals Help us celebrate our Sweet 16th irthday! work to improve quality, reduce costs BIGGBY COFFEE born March 15, 1995 in East Lansing, MI

BY JAY GREENE quality metrics drop to the bottom on a different day to an oncologist CRAIN’S DETROIT BUSINESS line. If you improve quality and re- or surgeon. You wait for the ap- duce time, you can do more vol- pointment and your anxiety is William Beaumont Hospitals and ume. If you are not in the top quar- very high.” 15 months of Henry Ford Health System have devel- tile, you lose money.” With the multidisciplinary clin- oped different approaches for work- Kelley said hospitals realize that ics, Flanders said, patients come growth ing with physicians to improve if they do not align physicians in and meet with all the physi- quality and reduce medical costs. with quality measurements, “they cians, who have team meetings It’s time for you to As government, private payers will pay a (financial) penalty.” and devise a treatment course the join the fun! and employers increasingly tie in- Beaumont Hospitals is taking a same day. cremental reimbursement to quali- different tack. Over the next several months, ty, hospitals and doctors under- Last fall, Beaumont launched a the centers of excellence teams stand that higher quality will be physician-led program to create will create clinical metrics and BIGGBY COFFEE rewarded not only with bonus pay- centers of excellence in six areas: targeted goals, Flanders said. ments but also more patients. cardiovascular, women and chil- “We have a list of about 1,400 Franchise Info Like St. John Providence Health dren, orthopedics, neurosciences, systemwide goals for quality and System, which is taking a third oncology and digestive medicine. costs. It is not that large for any www.biggby.com path by forming a co-management To improve quality and efficien- one group,” he said. “We have joint venture with 44 cardiovascu- cy in the centers of excellence, about 80 core measures that we are lar physicians, Beaumont Hospi- Beaumont administrators are tracking and trying to improve.” tal has a voluntary, private med- working closely with physicians Jay Greene: (313) 446-0325, ical staff. and nurses, said Sam Flanders, [email protected] Because physicians are in pri- M.D., senior vice president and vate practice, St. John and Beau- chief quality and safety officer. mont hospitals cannot pay physi- “It is going very well,” Flanders cians directly to improve quality said. “The neatest thing is the and efficiency. amount of physician engagement On the other hand, Henry Ford with this process. We have given Health System, which employs 1,200 them the authority and responsi- physicians through its Henry Ford bility on capital and clinical deci- Medical Group, can include financial sions and they have stepped up.” incentives as part of its employ- Each of the six centers are in dif- ment compensation model, said ferent stages of development, Flan- Mark Kelley, medical group CEO. ders said. Those six clinical areas “We are all trying to do the same account for about 75 percent of thing — private physicians and Beaumont’s total patients. employed physicians,” Kelley said. Flanders said Beaumont is not “In a group practice, it is a little paying physicians for time spent easier to set goals. Part of your or clinical goals reached. salary is at risk if you don’t meet “We are looking to improve a the incentives that are based on number of pillars: growth, quality quality objectives.” and safety, financial management Kelley said clinical quality and and efficiency,” Flanders aid. “Doc- efficiency metrics differ by depart- tors are very excited about it, and it ment and location. is helping their private practices.” “We don’t change the goals For example, Beaumont physi- every year. We hold pretty tight to cians have developed multidisci- our metrics,” he said. plinary clinics in oncology and Like other hospitals, Henry cardiovascular services to give Ford has goals to reduce surgery “one-stop” shopping to patients errors and hospital-acquired infec- coming in for tests. tions in intensive care. “If you have cancer, you come in “In cardiology, we have the the traditional way and see a same metrics (as St. John Provi- physician to get a diagnosis,” Flan- dence),” Kelley said. “All these ders said. “You are then referred

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Page 22 CRAIN’S DETROIT BUSINESS March 14, 2011 Health Care Extra Huron Valley-Sinai to renovate, add 23 rooms $7M project wins state approval

Huron Valley-Sinai Hospital in Commerce Township received CON Report state approval last month to renovate and build more private Applications: rooms. Ⅲ Father Murray Nursing Center, The hospital will grow from 33 Center Line, Father Murray Nursing to 94 private beds and add 23 and Rehabilitation Centre LLC in Lin- rooms. The cost for renovating colnwood, Ill., proposes to lease 20,736 square feet of space and the real estate and equipment at equipment is $7 million. the 231-bed Father Murray Nurs- The proposed renovation will ing Center, $30 million. have 22 rooms on the first floor, Ⅲ Leaders in the Making which is a decrease of seven Senior Community at Providence Park, Novi, to add 75 nursing home Today, more than ever, global competition and corporate streamlining require innovative thinking rooms. The main renovations will be on the second floor of the Re- beds, $22.1 million. and leadership abilities. Continuing your education can be key to ensuring your success. From biomedical gional Specialty Center Garden Ⅲ Senior Community of Auburn engineering to health information technology management, Lawrence Technological University offers Wing. Hills, Auburn Hills, to add 70 nurs- innovative degrees and fast-track certificate programs to prepare you for the jobs of the future. The second floor will have 80 pa- ing home beds, $20.6 million. tient rooms that will include 28 Ⅲ Medilodge of Clarkston Inc., Waive your application fee at www.ltu.edu/applyfree new rooms in the Garden Wing, Clarkston, to begin operating a which previously did not have any new 100-bed nursing home, $ 15 Explore over 100 undergraduate, master’s, 2011 2011 2011 rooms. The third floor will keep million. and doctoral programs in Colleges of AMERICA’S BEST BEST COLLEGES MILITARY UNIVERSITIES in the Midwest FRIENDLY the same number of rooms. Upon Ⅲ Medilodge of Oxford Inc., Ox- Architecture and Design, Arts and Sciences, U.S. News & Princeton SCHOOL World Report® Review® ford, to begin operating a new 100- Engineering, and Management. G.I. Jobs® completion of the project, there will be 142 patient rooms. bed nursing home, $ 15 million. Ⅲ Medilodge at Square Lake Inc., Lawrence Technological University | 21000 West Ten Mile Road, Southfield, MI 48075-1058 | 800.225.5588 | [email protected] | www.ltu.edu Currently, there are 119 patient rooms over three floors at the hos- Bloomfield Hills, to begin operat- pital — 29 rooms on the first floor, ing a new 85-bed nursing home, 52 on the second and 38 on the $12.6 million. third. Ⅲ Medilodge of Livingston Inc., The following are selected fil- Howell, to begin operating a new ings and decisions from Feb. 1-28. 82-bed nursing home, $11 million.

Filings approved: Letters of intent: Ⅲ Senior Community of Grosse Ⅲ University of Michigan Health Pointe, Grosse Pointe Woods, to System, Ann Arbor, to replace add 30 nursing home beds, $8.1 million. three air ambulance helicopters, Ⅲ University of Michigan Health $26.3 million. System, Ann Arbor, to renovate ex- Ⅲ Providence Hospital and Medical isting medical procedures unit at Centers, Southfield, to renovate ex- University Hospital, $6 million. isting nursing unit space, $8.2 mil- Ⅲ Oakwood Annapolis Hospital, lion. Wayne, to renovate the emergency Ⅲ William Beaumont Hospital, and endoscopy departments and Troy, to expand cardiac catheteri- required support areas, $4.8 mil- zation services, $3 million. lion. — Shawn Wright

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March 14, 2011 CRAIN’S DETROIT BUSINESS Page 23

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

PEOPLE CAREER CALENDAR Job fair at EMU registration (must be received by ning necessary for writing a com- entrepreneurialism and how to IN THE SPOTLIGHT midnight March 18) or $20 at the prehensive business plan, 8:45 a.m.- create a marketing plan for a busi- Eastern Michigan University and door. Register at www.mcjf.org/ 12:30 p.m. Tuesday, at the Southfield ness. Learn about legal issues, ac- Jim Grutza has others are hosting the Michigan candidates_reg.php. Public Library, 26300 Evergreen counting and financing options. been named to Collegiate Job Fair on March 25. It the new Road. Cost is $45. Call (313) 226-7947 The event costs $25 and runs 9 is open to seniors, graduates and position of Forums for entrepreneurs to register. a.m.-4 p.m. at the Key Bank Build- COO at alumni of any college. Ⅲ Ann Arbor Spark is hosting a ing, lower level, 301 W. Michigan Dearborn- The event will be at EMU’s Ca- Ⅲ SCORE Detroit chapter 18 is workshop Friday on how to start a Ave., Ypsilanti. For information or based reer Services Center, 200 McKenny hosting a workshop on how entre- business. The forum will discuss to register, go to www. Information Hall, Ypsilanti. Cost is $10 for early preneurs do the research and plan- the personality traits that impact annarborusa.org. Systems Resources. Grutza, 54, Grutza had been operations manager. He attended Oakland Community College and Central Michigan University. Information Systems Resources is a minority-owned IT sales, service, security, recycling and remarketing company. CONSULTING Greg Schocke to global practice director, business management, Urban Sci- ence, Detroit, from business management intelligence deployment manager. LAW

Michelle LeBeau to managing shareholder, Ogletree, Deakins, Nash, Smoak & Stewart PC, Bloomfield Hills, from shareholder. MANUFACTURING Joanne Ca- LeBeau vanaugh to director, Maneuver Collaboration Center, General Dynamics Land Systems, Ster- ling Heights, from program manager, Stryker Production and Programs. MARKETING Rick Wochoski to associate creative More ﬂexible. More affordable. director, J.R. Thompson Co., Farming- ton Hills, from associate creative director, BBDO, Troy. SERVICES More small business-friendly. Kwame Watkins to vice president of operations, Sodexo Inc., De- troit, from resident district manager, Oklahoma City. SUPPLIERS Stephanie Jett to Running a small business is a big responsibility. Fortunately, we’re here to Watkins vice president of sales, vibration help with a whole range of new small business-friendly plan designs—HMO, control systems, Metaldyne LLC, Ply- mouth, from sales director, vibration PPO and EPO. Not only are they more affordable, they’re extremely ﬂexible. control systems. Tom Aepelbacher to vice president, You can virtually design your own plan. Many plan designs are even HSA global sourcing productivity, TriMas Corp., Bloomfield Hills, from vice compatible. Of course, they also include preventive care, our customizable president of operations, Cequent Per- formance Products. wellness programs, and access to over 18,000 doctors and the leading area hospitals. Contact your agent or call HAP today at (800) HAP-PLUS. TRANSPORTATION John Burton to vice president, yield management, Con-way Freight, Ann Ar- bor, from vice president of transportation, ACT Research, Columbus, Ind. Dan Dressler to vice president of global purchasing and supplier develop- hap.org ment, Revstone Industries LLC, South- field, from buyer, direct material procurement, American Axle & Man- ufacturing Holdings Inc., Guanajuato, Mexico. 20110314-NEWS--0024-NAT-CCI-CD_-- 3/10/2011 2:19 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS March 14, 2011 THE EXCITEMENT IS BUILDING ... CALENDAR

members. Contact: (313) 596-0403; e- ship coach, Corporate Coach Univer- CELEBRATE ETHOS WEEK AT EMU mail: [email protected]; sity. Walsh College, Troy. $50 Inforum website: www.detroitchamber.com/ members, $75 nonmembers. Contact: Crain’s Detroit Business, Eastern smallbusinessclub. (877) 633-3500; website: www.inforum Michigan University, WJR 760 AM michigan.org. and others are hosting Ethos Week, designed to promote COMING EVENTS business ethics and to further Canada-U.S. Business Association and Detroit Economic Club. 11:30 a.m.-1:30 ethics education, on the EMU the Detroit Regional Chamber Busi- p.m. March 23. With Brian Moynihan, ness Luncheon. 11:30 a.m.-1 p.m. campus through Friday. president and CEO, Bank of America. March 25. With Perrin Beatty, Speakers include: Kathleen Detroit Marriott Renaissance Center, president and CEO, Canadian Cham- Yaremchuk, chair of Detroit. $45 members, $55 guests of ber of Commerce. Detroit Marriott Re- otolaryngology, Henry Ford Health members, $75 nonmembers. Contact: naissance Center. $45. Contact: (313) Systems, 5:30-6:30 p.m. Tuesday; (313) 963-8547; e-mail: info@econclub. 596-0336; e-mail: wnodge@ James McGrath IV, managing org; website: www.econclub.org. detroitchamber.com; website: www. partner, McGrath and Grace Ltd., detroitchamber.com. 11:30 a.m.-12:30 p.m. Leadership Detroit Informational Wednesday; and Ari Weinzweig, Breakfast. 8:30-10 a.m. March 24. co-founder and founding partner, Keeping Detroit Sustainable. 7:30-10 Learn about Leadership Detroit, the a.m. March 29. University of Michigan- Zingerman’s, 5:30-6:30 p.m. application process and benefits of the Thursday. Dearborn; Crain’s Detroit Business. program. Skyline Club, Southfield. With John Hertel, general manager, Friday’s events begin with a private Free. Contact: (313) 596-0315; e-mail: SMART Transportation; Chris Uhl, vice sponsor reception at noon, a [email protected]; web- president, Comerica Bank; others. UM- general reception at 12:30 p.m., a site: www.leadershipdetroit.com. Dearborn. $35, $30 groups of 10 or more luncheon at 1 p.m., and remarks or UM faculty and students, $50 at the by keynote speaker Barbara The Secret to Being Highly Effective door. Contact: (313) 446-0300; e-mail: cd- McQuade, U.S. Every Day. 7:30-10:30 a.m. March 24. In- [email protected]; website: attorney, forum. With Suzann Foerster, leader- www.crainsdetroit.com. Eastern District of Michigan, Detroit. Most events take place in Room 114 of CAREER MOVES the College of Business; all events are free FINANCE Call Us For Personalized McQuade except the Service: (313) 446-6068 luncheon. For a PricewaterhouseCoopers, LLP has full schedule and pricing for the an opportunity for the following CLOSING TIMES: Monday 3 p.m., position in Detroit, MI. one week prior to publication date. luncheon, visit Please call us for holiday closing times. www.emich.edu/ethosweek. Call 313-471-BALL (2255) Sr. Assoc SAP FICO Lead. Reqs. 1 yr FAX: (313) 446-1757 recent IT exp w/ a Big 4 Acctg Firm or E-MAIL: [email protected] comparable IT Consltg Firm; recent exp in INTERNET: customization & implementation of SAP www.crainsdetroit.com/section/classifieds TUESDAY R/3 as a tech conslt; FICO, MM & SD MARCH 15 Modules. Travel Req 0-80%. Reqs. incl. Confidential Reply Boxes Available Master’s deg in CS, MIS, Bus Admin, or related & 1 yr recent exp. PAYMENT: All classified ads must be A Conversation with Michigan Women prepaid. Checks, money order or Entrepreneurs. 11:30 a.m.-1:30 p.m. Info- Mail resume to Attn: HR SSC/Talent Mgt, Crain’s credit approval accepted. rum. With Shanny Apodaca, co-owner, 3109 W. MLK Jr. Blvd., Tampa, FL 33607, Credit cards accepted. Simply Good Kitchen; Michelle Crumm, Ref #DETAPU. Must be legally authorized See chief business officer and co-founder, to work in the U.S. w/out sponsorship. EOE. Crainsdetroit.com/Section/Classifieds Adaptive Materials; Florine Mark, presi- for more classified advertisements dent and chairman, The WW Group; An- tonella Soloman, Launch Learning Group; and Carol Cain, senior producer and host of “Michigan Matters,” WWJ- TV62. The Westin, Southfield. $50 Info- rum members, $65 nonmembers. Con- MARKET PLACE tact: (877) 633-3500; website: www.inforummichigan.org. BUSINESS & FRANCHISE OPPORTUNITIES INVESTMENTS WEDNESDAY Expanding premium pizza franchise is opening a new store at a prime, upscale suburban location in MARCH 16 BUSINESSES FOR SALE mid-Oakland County. Excellent business opportunity with high quality product line, first class Supply Chain Collaboration in a Chang- training and support. New stores with this franchise ing Defense Industry. 5-8 p.m. Women in — Business for Sale — have ranged in sales of up to $15,000 a week Defense Michigan chapter. With Denise Established gourmet market grossing starting in the opening month. Contact Business Brokerage & Finance for Vidusic, senior buyer, $3.7 million with high profit margin; more information, 734-927-6619. advance supply chain management, family operated for over 20 years; family AM General; others. Management Edu- collects over $400,000 income / benefits; cation Center, Troy. $35 WID/NDIA beautiful 18,000 sq. ft. building with many members, $45 nonmembers. Walk-ups $10 more. Contact: (248) 643-6590; e-mail: new fixtures; walk-in humidor and EQUIPMENT & [email protected]. cocktail/wine bar; SDD, SDM, Class C licenses; full-service kitchen/catering; deli, MERCHANDISE bakery, produce, meat, etc.; highest WAVE Seminar. 8 a.m.-5 p.m. University TELECOMMUNICATIONS volume independent Godiva retailer in of Michigan-Dearborn. A discussion of connected vehicle technical issues re- state; great reputation; asking $2.9 million AVAYA . . . NORTEL . . . IP OFFICE . . . BCM lated to wireless access, dedicated short plus inventory. PARTNER . . . NORSTAR Wire and Install Services . . . Systems/Parts range communications, vehicular ad Call (248) 888-1466 [email protected] (800) 342-5666 hoc networks, intelligent transportation systems, telematics, Intel- liDriveSM and autonomous vehicles. With Larry Burns, professor, University of Michigan; Kalman Gyimesi, associate partner, IBM. University of Michigan- Maria Sharapova Dearborn. $250. Contact: (734) 757-5878; for a and her Aquaracer Diamond Watch website: groups.engin.umd.umich.edu/ hpceep/wave2011. Contactcustom THURSDAY MARCH 17 Crain’sadvertising 248.855.1730 | 888.844.3916 Elevate your Business. 9-11 a.m. With 32940 Middlebelt Road Ned Staebler, vice president, entre- program Farmington Hills, MI 48334 preneurial and capital services, today Michigan Economic Development www.greis.com Corp.; others. Detroit Regional Cham- ber headquarters. $20 chamber mem- 313.446.6068 • FAX: 313.446.1757 bers business builder or higher, $30 E-Mail: [email protected] basic and associate members, $40 non- 20110314-NEWS--0025-NAT-CCI-CD_-- 3/11/2011 5:18 PM Page 1

March 14, 2011 CRAIN’S DETROIT BUSINESS Page 25 Suppliers: Oil prices, Japan quake – challenges hit in waves ■ From Page 3 Crude prices traded below $100 Corp., said CEO Don Stebbins. ing a tsunami and shaking build- It’s too early for analysts of the Ibara said spikes in gasoline Friday after the earthquake but Like many suppliers, Visteon ings as far away as Tokyo. used car market to make any fore- prices cause people to drive less and then returned to $101, down 3 per- has cut costs in recent years and is Kariya, Japan-based Denso’s cast changes based on oil prices. the economy to slow. He added: “A cent for the week. better able to weather a shock than Miyagi prefecture plant was dam- Eric Ibara, director of residual drop-off in demand for fuel means Cellasto, with North American it was in 2008, Stebbins said. Vis- aged in the earthquake, said Brid- consulting at Kelley Blue Book, said the oil inventories build up and headquarters in Wyandotte, teon, which produces many plastic gette Gollinger, senior public rela- given the fragile economy, Kelley eventually gasoline prices drop.” makes foam insulators used in parts for interiors and other sys- tions specialist of corporate believes that even if the price of Automotive News’ reporters Mike shocks and struts for noise and vi- tems, emerged from Chapter 11 pro- communications at Denso’s South- gasoline rises to $4.50 or $5 a gallon, Colias and Arlena Sawyers and bration dampening. The unit had tection from creditors in October. field-based North American head- it will not remain there for three Bloomberg News Service con- 2010 sales of about $50 million. Suppliers of plastic parts have quarters. years, the typical lease length. tributed to this report. Grimes said the prices of poly- contracts that require them to con- The plant was under construc- ester materials Cellasto uses, in- tinue shipping parts whether or tion with no workers present. The cluding material supplied by its not raw-material cost increases extent of the damage was un- parent, are rising with oil prices. have made the work unprofitable, known as of Friday. It was also un- There’s little hope of passing said one supplier executive who known whether suppliers would those higher materials costs to the asked not to be named. need to slow production due to Mission Outstanding! automakers until the automakers damaged plants among lower-tier are convinced soaring oil prices Better preparation for disaster suppliers or the automakers. Would you describe your are more than just a short-term Visteon and other suppliers law firm as outstanding? shock, he said. Last week’s Japan earthquake with Detroit-area headquarters — “They aren’t ready to hear a re- added an additional, likely short- BorgWarner Inc., Delphi Corp., TRW It could happen. quest yet,” Grimes said. term, challenge to some suppliers. Automotive Inc. — all reported their The oil spike also is taking a bite On Friday, an 8.9-magnitude Japan operations were up and run- The attorneys at McDonald Hopkins out of short-term profits at Van quake struck off the northern ning Friday despite the quake. are on a mission to provide outstanding Buren Township-based Visteon coast of the island nation, trigger- While the manufacturing im- legal services to every client. pact appears limited, the biggest ® threat to the automotive industry Attorneys on a Mission is the condition of Japan’s ports Your mission is our mission. due to the tsunami that engulfed We never lose sight of it. REAL ESTATE the country’s eastern seaboard following the quake, said Mike Wall, senior manager of strategic analy- INDUSTRIAL PROPERTY MISCELLANEOUS sis for Northville-based IHS Auto-

motive Inc. As of Friday afternoon, ® AVAILABLE NOW Waterford Apartments -- 96 -- $2.1M A business advisory and advocacy law firm 83 acres most major ports remained closed. R1 zoning Macomb Twp. $800K 39533 Woodward Avenue, Suite 318, Bloomfield Hills, MI 48304 • 248.646.5070 60 residential lots. Pine Knob area. 1.25 The automotive industry’s move 4,000 to 100,000 sq. ft. to a more regionalized supply base Carl J. Grassi Stephen M. Gross acres each. Ready to build on. $750K President Detroit Managing Member Also 10,000 & 25,000 sq. ft. likely saved automotive produc- Bill McMachen 586-915-4441 tion in North America, Wall said. Chicago • Cleveland • Columbus • Detroit • West Palm Beach Free Standing Bldgs w/truckwells. [email protected] Most Japanese automakers here www.mcdonaldhopkins.com 1 Mile from Metro Airport used to import most parts from OFFICE SPACE Japan; now they have a more di- REA CONSTRUCTION verse supply pipeline. (734) 946-8730 Flint Township Office Building Analysts: Industry strong enough Also Heavy Industrial Many suppliers have strong bal- Land Available ance sheets to be able to sustain short-term challenges like the www.reaconstruction.net • Class A Office Building 800-292-3831 • I-69 / I-75 / US23 near Bishop Airport earthquake and the long-term • Up to 20,000 Sq. Ft. Available - 300 car parking trend toward higher oil prices, an- indiantrails.com • Fully Furnished with 100 pre-wired workstations alysts said. • 800 kw backup generator Pontiac Warehouse for Lease • General Offices, Call Center, Data Center or “The cost-cutting that’s been Best Deal in Town! Medical Offices done over the past two years has al- 248-496-3405 lowed the whole industry throughout the chain to make money at PROPERTY MANAGEMENT much lower (volume) levels,” said ONE HU G ND David Whiston, a senior equity ana- IN R T E A D lyst covering the automotive indus- R Y • Warehousing, Machine/Die Storage, B E E A

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E Manufacturing try for Chicago-based investment S C 100 • M/59, Widetrack, and Woodward Area research company Morningstar Inc. 5,000 to 200,000 Sq. Ft Available • Professional Multi-Family Management “So the rising oil prices don’t scare with Offices, Short or Long Term me like they did in 2008.” Leases for over 45 years. • 8 Interior Truck Wells, 16 Ft. Ceiling WE SPECIALIZE IN Suppliers also adjusted their Heights, Sprinklers, Heated, Buss Duct, business models to account for a • Increasing Occupancy • and Air Lines. 248-496-3405 smaller industry with a lower WE MANAGE YOUR ASSET TO overall output, he said. ACHIEVE GREATER CASH FLOW. Rising oil prices could eventual- The Crain’s reader: Our Model Works. ly push consumers away from CALL JEFFREY KAFTAN AT 248-352-3800 larger truck models, which in the 26.5% influence the past would adversely affect De- purchase of office/industrial www.KaftanCommunities.com troit’s automakers, but their more and commercial space. competitive small-car lineups can Help them find you by Call Us For Personalized compete with foreign automakers, advertising in Crain’s Real Service: (313) 446-6068 Whiston said. Estate section. A long-term shift away from Comfort and CLOSING TIMES: Monday 3 p.m., trucks would prove damaging to 313.446.6068 • FAX: 313.446.1757 one week prior to publication date. American Axle & Manufacturing Inc.’s E-Mail: [email protected] Please call us for holiday closing times. earnings. The Detroit-based sup- FAX: (313) 446-1757 plier is the primary supplier of t$IBSUFST Luxury E-MAIL: [email protected] truck axles to General Motors Co. INTERNET: However, the supplier hasn’t t5PVST www.crainsdetroit.com/section/classifieds seen a shift in orders, said Christo- Confidential Reply Boxes Available pher Son, American Axle’s direc- t4IVUUMFT 00 PAYMENT: All classified ads must be tor of investor relations and corpo- $100 prepaid. Checks, money order or rate communications. t$POWFOUJPO4FSWJDFT SAVE OFF Crain’s credit approval accepted. “Production continues to remain Credit cards accepted. steady,” he said. “It’s definitely t$PSQPSBUF&WFOUT See something we’re watching but we’re Contact Indian Trails for details. Must use this Crainsdetroit.com/Section/Classifieds not seeing any significant pull-back t4DIFEVMFE4FSWJDF promotional code at time of booking: 2011CDB-MAR for more classified advertisements in our schedules as of yet.” 20110314-NEWS--0026-NAT-CCI-CD_-- 3/11/2011 5:15 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS March 14, 2011

UM-Dearborn and Crain’s Detroit Business present Tax: Snyder plan cuts biz tax by 60% Keeping Detroit Sustainable ■ From Page 1 Join us as we explore how government, non-government, Aid Fund revenue from individual that hit on most of the existing could cause a business to pay more community, industry and academic leaders are incorporating income taxes would increase some credits and have a high local per- under the new tax structure; it sustainable practices as they plan and implement the 32 percent, Olson said. Proposed sonal property tax are the ones that could be their past losses. revitalization of the city. changes include taxing retirement would likely … either get fewer Companies are currently al- income and eliminating most cred- credits back or pay more tax,” Cal- lowed to take losses against the in- As the anchor city of Michigan, Breakfast and Discussion its and deductions related to the in- ley said. come base of the MBT, but the gov- “For the vast majority of compa- Detroit is the center of dividual income tax. ernor’s plan as introduced makes March 29, 2011 The governor’s office on Friday nies in the state, it comes out much no provision for companies to car- economic, social and cultural 7:30 a.m.–10:00 a.m. was unable to verify Olson’s fig- better. This proposal doesn’t have ry forward losses generated during activities in the state. Fairlane Center North ures and calculations, but deputy the credit features that allow you MBT years into the new corporate Quad E press secretary Ken Silfven said to pay zero and still get money income tax, or CIT, said Greg Panelists will discuss how 19000 Hubbard Drive the “shift we’re proposing is fair, back. That’s the difference.” Nowak, partner in the Detroit of- federal, state and local policies Dearborn, MI 48126 and there is a whole universe of Olson, former director of the Sen- fice of law firm Miller, Canfield, Pad- and programs are influencing taxes that businesses are still pay- ate Fiscal Agency, said that while dock and Stone PLC and chairman of $35 per person the economic vitality of the ing. We’re trying to bring some “no one would argue that cutting the Michigan Association of Certified city through implementation fairness to the tax structure.” businesses taxes by 86 percent Public Accountants. of sustainable practices. In a recent interview, when won’t help business,” there’s a “If a company becomes prof- asked why businesses should re- question of the extent to which it itable in 2012, and they had been ceive more favorable tax treatment will increase Michigan business generating losses in prior years, than individuals, Lt. Gov. Brian activity. they would not be able to carry Calley said “individuals want jobs He said Michigan needs to also those losses forward. You could For more info or to register online, more than anything” and the focus consider the potential economic have companies, by virtue of be- visit umd.umich.edu/sustainability_lecture of the proposal is on job growth. impact of raising income taxes, coming profitable, paying more “What we’re such as causing individuals to re- under the CIT because they would- saying is that duce spending. n’t be allowed loss carryovers,” he the more evenly said. you distribute With a business-tax cut that the tax burden No more gross receipts tax eliminates gross receipts tax and across the sys- The new tax plan would elimi- leaves a tax structure reliant on tem, making it nate an MBT that has at its base a corporate income, some say Michi- more simple, 4.95 percent business income tax gan is shrinking its business-tax fair and effi- and a 0.8 percent modified gross re- cient, the more base to a smaller revenue stream ceipts tax, the latter of which gen- that is inherently more volatile be- competitive that erates some 70 percent of MBT rev- Calley cause it is tied to profits. tax system will enue. Factor in the tax-credit agree- be,” he said. Factoring in the 21.99 percent ments that the Snyder administra- Snyder’s plan would eliminate surcharge on the MBT, tax experts tion plans to honor, and “you could the MBT and impose a 6 percent said the effective rate of the gross very likely get into a situation corporate income tax only on “C” receipts tax is 1 percent, while the where you’re actually paying out corporations, which include most effective rate of the business-in- more in credits to business than public companies and many large come component of the MBT base privately held companies, as well is 6 percent — the same level as the you’re collecting from the business as some smaller companies. new tax. tax,” said Mitch Bean, director of The plan would eliminate an ar- “Nobody will be subject to the the House Fiscal Agency. ray of state tax credits that are 1 percent gross receipts tax. And Calley said he sees the possibili- baked into the MBT structure or from the perspective of income tax, ty that the state might see zero or awarded by the state, affecting S corps and partnerships will not negative corporate income tax col- businesses that benefited from be subject to a business-level in- lections as “an unlikely scenario.” those credits. Examples include come tax, and C corps will remain He said “there is no revenue brownfield tax credits and Michigan subject to a 6 percent income tax,” stream that is recession-proof,” but Economic Growth Authority incen- said Curtis Ruppal, partner of state the state’s overall revenue base tives as well as credits for wages, and local tax in the Grand Rapids will be more stable than it is cur- investment and personal property. office of Plante & Moran PLLC. rently. But most businesses appear win- “From an overall tax structure But, he said, “no matter what ners under Snyder’s plan. perspective, all business entities your business tax base is, when will win on a pre-credit basis. So you have credits as massive” as Tax hike for some businesses what’s dictating winners and Michigan’s, “you always have losers is the elimination of the some risk of having a negative tax Of the 136,706 businesses that credits.” collection, no matter the tax rate.” pay the MBT based on the most re- In some instances, it may not be Amy Lane: (517) 371-5355, cent Treasury data, 95,251 are so- the elimination of tax credits that [email protected] called “pass-through” entities, Cal- ley said. Those sole proprietorships, LLCs and other individually owned businesses would not be subject to Snyder’s new corporate income tax and would pay only individual income tax. Among the 41,169 C corporations that would pay the new 6 percent corporate income tax, some 4,310 might pay more than they do now by virtue of smaller refunds or higher liability, Calley said. Manufacturers represent about 31 percent of the 4,310 corporations, while service businesses make up about 29 percent. Retail trade represents about 11 percent and construction businesses, about 9 percent. Calley said the state now writes checks totaling about $95 million annually to businesses that have had their MBT liability offset by other incentives or credits or are getting rebates of personal property taxes they paid. “For those who do achieve a positive tax liability in this plan, I think you would see the companies 20110314-NEWS--0027-NAT-CCI-CD_-- 3/11/2011 5:19 PM Page 1

March 14, 2011 CRAIN’S DETROIT BUSINESS Page 27 Michigan Institute of Urology adds to stable Dealer: Pontiac to Buick ■ BY JAY GREENE vate and government payers. stitute of Urology acquired the From Page 3 CRAIN’S DETROIT BUSINESS For example, last fall, IHA, an practices of Tri County Urologists Also in 2009, Slaughter hired a sition to Buick. Customers sip Ann Arbor-based group of 150 PC, a 10-physician osteopathic four-person business development lattes while pecking away on Wi- Thirteen urologists have joined physicians, and Michigan Heart, a practice with offices in Macomb team to begin reaching out for Fi-enabled laptops. the St. Clair Shores-based Michi- 34-physician cardiology group, Township, Warren, Livonia and new customers. There was plenty In hindsight, the project was gan Institute of Urology in the past joined St. Joseph Mercy Health Sys- Novi, Santino said. of opportunity: Within eight well-timed. But early on, it ap- four months, increasing the size tem in Ann Arbor. Last November, three-physi- miles, a Saturn, a Chevrolet and a peared doomed. Slaughter broke of Southeast Michigan’s largest Rob Casalou, CEO of St. Joseph cian Urological Surgeons PC joined Buick-GMC dealership each ground in August 2008 — just in urology group to 54 physicians Mercy Ann Arbor, Livingston and Michigan Institute with its three closed. time for a stock market crash and and 20 offices. Saline hospitals, said St. Joseph offices in Sterling Heights, Lake Still, success largely hinged on the evaporation of leasing busi- More physicians are joining plans to double the size of its IHA Orion and Macomb Township. persuading longtime Pontiac cus- ness. groups and physician organiza- group over the next five years to In late 2009, MIU also hired Jay tomers to consider Buick. Figur- “I think it was a rallying point for tions because of rising medical of- prepare for health care reform Hollander, M.D., vice chair of ing he could move Pontiac G6 cus- our customers that we didn’t think fice expenses, reimbursement and to better manage inpatient urology at William Beaumont Hospi- tomers into Buick Regals, we were going to get cut by GM,” cuts and a greater ability to per- and outpatient care. tal in Royal Oak. Slaughter got 150 Regals through Slaughter said. “Never mind I was form more profitable ancillary The area’s second largest urolo- Michigan Institute also has dealer trades in the fourth quarter standing behind the curtain cry- services at lower costs, said gy group, the Henry Ford Vattikuti been pilot testing two electronic of 2010. ing.” Alphonse Santino, M.D., the urol- Urology Institute with 41 urologists, health record systems, Bloom- “We were able to move them be- But outwardly, Slaughter oozed ogy group’s CEO. including 10 researchers, also is field Hills-based gloStream’s EHR cause we kept a lot of those Pontiac confidence, Phalen said. Another factor propelling inde- growing. The group added two and UroChart EMR, said Nicole customers and picked up new ones, “He leveraged every tidbit of pendent physicians or small prac- physicians last year and is recruit- Brach, a former nurse and the like Saturn,” Slaughter said. positive news,” Phalen said. “Your tices to join larger physician orga- ing two more this year, said practice’s executive director. By the time the last Pontiac people are going to look to see how nizations is health care reform and Dwight Angell, Henry Ford Health UroChart EMR is produced by rolled off Slaughter’s lot on Jan. 3, the owner reacts. If you convey the need to form accountable-care System director of media relations. Springfield, Mo.-based Intuitive 2010, his new, wood-accented show- trouble, it won’t go well.” organizations to contract with pri- On March 1, the Michigan In- Medical Software. room was tailor-made for the tran- From Automotive News

Turnover: Departures from Bing team put power in fewer hands ■ From Page 1 a change. think those transcend areas of re- In an e-mail to Crain’s, Dan Li- THOSE WHO’VE GONE sponsibility.” jana, a communications manager Holmes is an attorney, with an Top-level departures from the Bing administration, according to the mayor’s office: for Bing, wrote that the mayor has undergrad degree in accounting, installed a “business-style manage- Janet Anderson, deputy budget director* Beverlyn Hilton, director, community relations who joined the city in 1999 as assis- ment structure” in city government. Charles Beckham, group executive, operations Jessy Jacob, city engineer, Department of Public tant corporation counsel. She held “It is more efficient, more effec- Michael Bridges, chief accounting officer* Works various positions in the Law Depart- tive and provides the highest level Delbert Brown, director, Coleman A. Young Sheiliah Johnson, deputy director, Building Safety ment before becoming the director of service to the taxpaying resi- International Airport Engineering and Environmental* of the city’s Human Resources De- dents and businesses of Detroit,” Robert Buckler, COO Mark Jones, director of the Office of Targeted partment. Lijana wrote. “The Bing adminis- Edward Cardenas, press secretary Business Development Holmes first served as group ex- tration inherited a broken struc- ecutive for human resources, ac- Sue Carnell, group executive, mayor’s office Christina Ladson, interim purchasing director, finance ture and bureaucracy hundreds of cording to the 2009 org chart, be- Gail Carr, manager, Community Access Center Kirk Lewis, chief government and corporate affairs millions of dollars in the red.” officer fore becoming chief of staff in Lijana wrote that those circum- Sreenivas Cherukuri, director, information technology April 2010. services Ronald Lockett, deputy director, Community Access stances have necessitated change Center* Holmes now oversees human re- at every level, and that some ap- Les Daggs, deputy director, Office of Targeted sources, the Detroit Workforce Devel- Business Development** Warren Palmer, director, planning and development pointees were fired when depart- opment Department, the Human Terra DeFoe, manager, Community Access Center Darchelle Strickland Love, special projects ments were consolidated or elimi- James Mack Jr., fire commissioner Rights Department, labor relations, nated. Seth Doyle, deputy fire commissioner mayoral appointments, manage- Warren Evans, chief of police Akila McAllister, director, Office of Neighborhood “I have the utmost confidence in Commercial Revitalization ment of the mayor’s office, the Hu- my leadership team,” Bing wrote Al Fields, group executive, operations man Services Department and the Carl Ramsey, manager, Community Access Center in the e-mail. “They understand Christine Granger, director, Human Rights Health and Wellness Promotion De- Arese Robinson, mayoral appointments that I expect results, and I am con- Department partment. fident we will continue to deliver.” Larry Hightower, director, Detroit Workforce Lee Stephenson, deputy director, recreation “(Bing is) still trying to get a feel But some appointees are draw- Development Department Stephanie Young, director, Community Access Center for how to run city government,” ing criticism from Detroiters, few *Reverted to a civil service position, still with the city said political consultant Adolph of whom would go on the record **Department was eliminated Mongo. “It’s not like the private about their concerns. sector. He’s trying to find the right “I think it’s inherently dangerous managing director of Singapore thet in his 2008 State of the City ad- the long hours the mayor’s team combination to make it work, and not to have the best and brightest Power International. dress and criticized the 2007 ver- works. obviously he hasn’t found it yet. around you at this juncture,” said Brown oversees the Detroit Water dict in a whistleblowers’ lawsuit “We’re here 12 and 13 hours a Obviously the mayor, he’s still political consultant Steve Hood, of and Sewerage Department, the that led to his 2009 ouster after he day,” she said. “You have to be learning. He’s still an intern.” Detroit-based Ronin America, speak- group executive for planning and was convicted of committed not only to the mayor Fields said that while his depar- ing of the mayor’s inner circle. facilities, the group executive for lying on the but to the city. … The mayor walks ture had been involuntary, he un- During the week Fields and transportation, the Public Lighting stand. in at 7 a.m. and I walk in right be- derstands that appointees serve at Lewis were dismissed, three peo- Department, the Department of Public In May 2009, hind him. We’re here all day and the mayor’s pleasure. ple took on new departments to Works, the General Services Depart- Dumas wrote we’re working, and that’s the story Fields said he hopes the mayor’s oversee: Holmes, Dumas and COO ment, the Greater Detroit Resource that she was un- nobody ever wants to tell.” office becomes more stable. Chris Brown. Recovery Authority (the incinerator) sure of whom to Dumas now supervises the may- “From my management experi- An organizational chart from and recreation. vote for in the or’s communications department, ence, constant turnover causes un- December 2009, then representing Dumas, a public relations and special election Community Access Centers, the Com- certainty,” he said. “It’s hard to get a significant restructuring of the marketing professional, was named that seated Bing. munications and Creative Services Di- in a rhythm, not just for me per- mayor’s office, showed eight group community relations director in In the blog post, vision, the Office of Special Events sonally but for departments, oper- Dumas executives, a CFO and a COO, five 2001. She was made director of cul- she mulled skip- and Film, the city’s chief service of- ations, they have to get into that of whom reported directly to the ture, arts and tourism in 2003, a ping the mayoral question entirely. ficer, governmental affairs and ca- rhythm. mayor. move criticized by some in the city The next month, she took a job ble communications — a source of “From my experience … the A chart included in materials who said Dumas lacked knowledge in Bing’s administration. controversy as Bing and city coun- chief level and the mayor are the from Bing’s State of the City ad- of Detroit’s art scene, according to “The mayor and I knew each oth- cil have fought over who should ones who are working really close dress shows three group executives contemporary newspaper accounts. er, but we’d never worked together control the city’s Cable Commission together,” he said. “I did my part (without Fields), a CFO, a COO, a In 2005, Dumas lost her job in the before,” she said. “I accepted the po- and thus its two public access from helping my team … I wish chief of staff, communications offi- Kilpatrick administration because sition, but we went back and forth channels. them all the luck, because I’m a De- cer and a deputy mayor, still with of budget cuts but remained an ar- before I would accept it and I asked Dumas said that while her back- troiter. I just hope it’s all for the five direct reports to Bing. dent supporter of the now-incar- that it be on an interim basis.” ground is in communications, best. As a Detroit resident, as Brown’s expertise is in energy, cerated former mayor, voicing sup- Once she’d taken the job, Dumas “There are certain attributes that someone who loves this city, I with stints as an executive vice port for him in a regular column in said, “We saw that we shared a lot are applicable to performance and want it to move forward and get president of DTE Energy Resources, the Michigan Chronicle and on a of similarities, including our work not relegated to a particular area: out of this funk. And we all have to vice president of DTE Energy Co., an blog at www.karendumas.com. ethic and commitment to the city, follow-up, professionalism, being think that way.” adviser to the U.S. Department of En- On her blog, Dumas defended and that we worked well together.” thorough, doing what the mayor Nancy Kaffer: (313) 446-0412, ergy and senior vice president and Kilpatrick for using a racial epi- Dumas said that many don’t see set forth to do as an agenda. … I [email protected] 20110314-NEWS--0028-NAT-CCI-CD_-- 3/11/2011 5:17 PM Page 1

Page 28 CRAIN’S DETROIT BUSINESS March 14, 2011 Sphinx: Growth overseas ■ From Page 1

increase diversity in major orches- so far, performing in seven coun- tras and to expose more under- tries: Belgium, Bermuda, England, served youth to classical music. Mexico, Paraguay, South Africa Sphinx musicians have traveled to and Venezuela. seven other countries over the The trips help develop Sphinx past five years. musicians as cultural and musical SphinxFest would serve as a ambassadors while providing the convening event much like the benefit of being able to reach Sphinx Competition here in the young people in other countries, U.S., said founder Aaron especially those in underserved ar- Dworkin. eas, to reach many who have only If the Detroit-based nonprofit is learned about western people or successful in securing some de- music through media or other gree of funding or sponsorships sources, Dworkin said. from organizations like the J.P. Sphinx, which had total 2010 Morgan Chase Foundation and the revenue of $3.25 million, is operat- U.S. embassy in England, the in- ing on a $3.4 million budget this ternational conference could take year, said Alison Piech, manager place before the end of this year or of media partnerships, in an e- early in 2012, Dworkin said. mail. “Especially these days, there Much of that funding is from seems to be so many manmade rea- foundations and the government sons for conflict between nations sources, Dworkin said. and/or lack of understanding and Sphinx’s budget for the interna- tolerance for other cultures,” he tional activities is about $100,000 said. “Music can be that bridge of this year, up from $50,000 last year, understanding. he said, and coming from U.S. em- “To be able to take the models bassies, the U.S. State Department and work we’ve done here that we and organizations in other coun- know have helped to bridge com- tries that bring Sphinx musicians munities in the states and bring in to their communities. that to the international stage Like Sphinx, Detroit-based Mo- could have a major impact on the saic Youth Theatre, a Detroit-based world.” organization that provides profes- Dworkin founded Sphinx 15 sional-level theater and vocal mu- years ago, while still a student at sic training to local youths, has the University of Michigan. He began traveled to many other countries, by organizing an annual national including Singapore, Denmark, competition for young black and England, Dakar and Senegal, Latino musicians hosted in Ann Africa; and to Montreal, Stratford Arbor and Detroit and offering and Toronto. music education programs for De- “While we have gone to Canada troit students before expanding more recently, we have not gone to them to his native New York and another continent since Dakar in to other underserved parts of the 2003,” said Pres- U.S. ident Rick Sper- During the past 15 years, Sphinx ling. has helped provide music educa- Mosaic tion for 85,000 students across stopped touring nearly 200 U.S. school districts. internationally Sphinx has also broken new for financial ground on the professional front. reasons, he said. In December 2004, The Sphinx “With diffi- Chamber Orchestra performed a cult economic concert — the first by minority times, it was Sperling musicians — at Carnegie Hall. hard to justify And in 2008, the orchestra began raising funds for an international touring nationally, with support tour instead of focusing our from New York-based Andrew W. fundraising efforts on our core (lo- Mellon Foundation and Target Corp. cal) program.” PART ONE OF THREE: Dworkin — who received a Mosaic reported about $1.35 mil- $500,000 “genius grant” in fall 2005 lion in total revenue and a loss of Data Security – Social media from the Chicago-based John D. and just under $118,000 in fiscal 2009, Catherine T. MacArthur Foundation — the year of its latest tax filing. That and cloud computing didn’t stop there. was up from $1.3 million in rev- Sphinx began to dabble in inter- enue and a loss of just under national performances four or five $305,000 the year before. years ago, first in London through Still, “Our international trips Protecting yourself Joe Angileri, Mark Ford, Robert Biskup, its partnership with Southbank have been tremendously impactful Partner, Principal, Director, Centre, a national arts group akin — both for our young artists and Deloitte LLP Deloitte & Deloitte Financial to the Washington, D.C.-based The for the organization,” Sperling from Fraud Touche LLP Advisory Services LLP John F. Kennedy Center for the Per- said. forming Arts. Traveling to other countries Join us to learn more about: “As we began to have discus- broadens the horizons of Mosaic’s sions with Southbank Centre and minority performers and allows some of our partners in the other them to see how their lives com- Risks associated with social media (e.g. countries … we learned there was pare to others’, he said. potential damage to brand image from employee, need in underserved communities, At the same time, the trips raise customer, or other third-party postings). among young people and among Mosaic’s profile as an “interna- audiences that weren’t typically tionally acclaimed arts organiza- April 28|Noon – 1 p.m. EST Protecting your business when an out-of-sight, exposed to classical music,” tion” and a goodwill ambassador out-of-mind myriad of computer tasks happen on Dworkin said. for Detroit, he said. To learn more, please visit “The conclusion from those con- “Our board of directors is com- someone else’s equipment, i.e., in “the cloud”. versations was that the work we mitted to doing more international www.crainsdetroit.com/crainsevents were doing here in the states was travel in the near future, because FREE to Crain’s readers Preventing fraud, and mitigation strategies to not only relevant in those coun- of the transformational impact it consider if/when fraud occurs. tries but needed.” can have for our young artists,” About 20 Sphinx musicians have Sperling said. traveled to perform at U.S. em- Sherri Welch: (313) 446-1694, bassies and in local communities [email protected] 20110314-NEWS--0029-NAT-CCI-CD_-- 3/11/2011 5:16 PM Page 1

March 14, 2011 CRAIN’S DETROIT BUSINESS Page 29 Moroun: Can Ambassador owner’s big guns win? www.crainsdetroit.com ■ From Page 3 EDITOR-IN-CHIEF Keith E. Crain PUBLISHER Mary Kramer, (313) 446-0399 or and stick Michigan taxpayers with [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- a $100 million bill every year.” BRIDGE BACKGROUND 0460 or [email protected] That estimate comes from a new Ⅲ The Michigan Department of cost overruns, operational losses and operate the bridge, but the DEPUTY MANAGING EDITOR Jennette Smith, analysis commissioned by the and default on construction governments own it. Toll revenue (313) 446-1622 or [email protected] Transportation, Canada and the U.S. SENIOR EDITOR Bob Allen, (313) 446-0344 or bridge company. Federal Highway Administration want financing linked to overestimation of would pay off the construction debt [email protected] The study hasn’t been made pub- a new span between Windsor’s toll revenue would put Michigan and operational costs. WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- lic, but will be, said Mickey Blash- Brighton Beach area and Detroit’s taxpayers at risk. Ⅲ Worry emerged on both sides of 8158 or [email protected] COPY DESK CHIEF Gary Piatek, (313) 446-0357 or field, the bridge company’s direc- industrial Delray neighborhood that Ⅲ Gov. Rick Snyder and the bridge’s the aisle that the bill gave MDOT too [email protected] tor of governmental relations. will link Highway 401 and I-75 to backers have promised the project much latitude on P3 projects, fueling ASSISTANT NEWS EDITOR Jeff Johnston, (313) The spots urge viewers to call boost trade and improve traffic. won’t cost the state a cent because fears that lack of legislative 446-1608 or [email protected] Snyder to voice opposition to NITC. Ⅲ Backers say the span is needed Canada and the private sector will oversight could result in the agency DATA EDITOR Anne Marks, (313) 446-0418 or pick up the entire cost, and any entering into gigantic financial [email protected] “It’s intended to try to level the to bolster trade, relieve traffic concession agreement would boondoggles. WEB DEVELOPER Steve Williams, (313) 446- congestion and act as redundancy in 6059, [email protected] playing field,” Blashfield said of protect the public financially. the new campaign. case the other crossings are closed. Ⅲ HB 4961, introduced by Rep. Lee WEB EDITOR Gary Anglebrandt, (313) 446-1621, Ⅲ The Ambassador Bridge saw Gonzalez, D-Flint, was passed by the [email protected] It’s not a cheap campaign. Ⅲ Opposition to the new crossing has been rooted in concerns that a 7.2 million cars and trucks cross House in May but died from inaction EDITORIAL SUPPORT Robertta Reiff (313) 446- An analysis provided to Crain’s 0419, YahNica Crawford, (313) 446-0329 decade of declining border traffic between Detroit and Windsor in in the Senate after summer shows the bridge company spent NEWSROOM (313) 446-0329, FAX (313) 446- make it a luxury rather than a 2010, a 12 percent gain over 2009 hearings that didn’t produce any 1687 TIP LINE (313) 446-6766 about $273,000 in ads on Detroit’s necessity and that cash-strapped but a 41 percent decline versus 10 consensus except to not bring the four main TV stations (WJBK-TV2, years ago. bill to the floor for a vote. REPORTERS Michigan can’t afford it — a worry Daniel Duggan: Covers retail, real estate and WDIV-Channel 4, WXYZ-Channel 7 and somewhat ameliorated by Canada’s Ⅲ The original enabling legislation Ⅲ A new Republican bill is expected hospitality. (313) 446-0414 or WWJ-TV62) for March 7-20. offer to pay for up to $550 million of [email protected] for the Detroit River International to be introduced in coming days or Jay Greene, senior reporter: Covers health care, Ad time worth $130,000 was the state’s project cost not Crossing bridge, now officially weeks that would be aimed solely at insurance and the environment. (313) 446-0325 or bought in the Flint, Grand Rapids, otherwise covered by the private named the New International Trade a new Detroit River bridge and is [email protected]. Chad Halcom: Covers law, non-automotive Lansing and Traverse City mar- sector or U.S. federal government. Crossing, authorized MDOT to enter expected to create a bridge authority manufacturing, defense contracting and Oakland in any public-private partnership independent of MDOT — something and Macomb counties. (313) 446-6796 or kets. Another $75,000 was spent on Ⅲ Questions by non-aligned [email protected]. cable advertising in Michigan, in- transportation infrastructure project. A P3 is the preferred seen as a sop to GOP lawmakers Tom Henderson: Covers banking, finance, cluding the Food Network, USA, TNT, insiders about the traffic study’s method for both DRIC and NITC — a who distrust the agency. technology and biotechnology. (313) 446-0337 or private firm is contracted to build [email protected]. A&E and the Weather Channel. accuracy have sparked worry that — Bill Shea Nancy Kaffer: Covers small business, the city of Detroit, Wayne County government. (313) 446- It’s not known how much the 0412 or [email protected]. bridge company spent on the Fox ILL FOR NEW BRIDGE Bill Shea, enterprise editor: Covers media, B advertising and marketing, the business of sports, News spots, or in hiring Morris. and transportation. (313) 446-1626 or Just how much a new Detroit River span would cost won’t be known until it’s done, but estimates since the project [email protected]. was first proposed a decade ago have ranged from about $1 billion to more than $5 billion. The latest breakdown Nathan Skid: Multimedia reporter. Also covers the Do they work? from the government agencies involved in the Detroit River International Crossing and Gov. Rick Snyder’s office put food industry and entertainment. (313) 446-1654, the cost at $3.8 billion. Snyder’s forthcoming bridge proposal, which is being called the New International Trade [email protected]. Will Moroun’s latest round of Sherri Welch: Covers nonprofits and services. Crossing, uses the DRIC proposal as its backbone, but details haven’t been made public: (313) 446-1694 or [email protected] spending — he’s invested heavily Dustin Walsh: Covers auto suppliers, steel, higher in the past on campaign donations Cost breakdown by project component, U.S. dollars: Cost breakdown by agency: education and Livingston and Washtenaw Ⅲ I-75 interchange: $385.9 million Ⅲ Michigan: Zero counties. (313) 446-6042 or [email protected] for sympathetic lawmakers, public LANSING BUREAU relations agencies and lawsuits — Ⅲ U.S. Customs plaza: $413.6 million Ⅲ Federal Highway Administration: Zero Amy Lane: Covers business issues at the Capitol, telecommunications and utilities. (517) 371-5355, turn the tide for him? Ⅲ NITC bridge: $949.1 million Ⅲ General Services Administration: $263.6 million FAX (517) 371-2492, [email protected]. or 115 W. Maybe, said Kelly Rossman- Ⅲ Canadian customs plaza: $387.6 million Ⅲ Canada: $2.593.5 billion Allegan, Suite 220, Lansing 48933. McKinney, CEO and principal at Ⅲ Windsor Essex Parkway: $1.67 billion Ⅲ Private-sector partner: $949.1 million ADVERTISING Lansing-based political public re- ADVERTISING DIRECTOR Marla Downs, (313) Total: $3.806 billion 446-6032 or [email protected] lations firm Truscott Rossman. She SALES INQUIRIES: (313) 446-6052; FAX (313) sees the ads as possibly generating Note: The Windsor-Essex Parkway is entirely a Canadian project and has a separate public-private partnership concession. 393-0997 The bridge private sector partner would pay the construction costs and have a concession to operate the span and collect its tolls. Separate ADVERTISING SALES Christine Galasso, Matthew support from people worried about J. Langan, Lori Tournay Liggett, Tamara Rokowski, tax dollars and who see the bridge Michigan and Canadian government authorities would own the bridge and provide oversight, a somewhat similar setup to the Blue Water Cheryl Rothe, Dale Smolinski as a Southeast Michigan issue. Bridge. CLASSIFIED SALES (313)-446-0351 “(TV spots) can be effective, es- MARKETING MANAGER Irma Clark EVENTS MANAGER Nicole LaPointe pecially if they do result in calls to HIGH-PROFILE PLAYERS MARKETING ARTIST Sylvia Kolaski legislators,” she said. “It’s a pretty SALES SUPPORT Suzanne Janik, YahNica Crawford standard strategy in an issue-man- In addition to Dick Morris, a number of high-profile local and national figures have been involved in the Detroit River CIRCULATION Candice Yopp, Manager. agement campaign to deliver your bridge saga over the years: MARKETING COORDINATOR Kim Winkler PRODUCTION MANAGER Wendy Kobylarz message in every way possible.” Ⅲ Mickey Kantor, chairman of the Ⅲ Jim Blanchard, governor of Ⅲ Longtime Detroit-based political PRODUCTION SUPERVISOR Larry Williams Moroun’s return on investment Clinton-Gore campaign in 1992 and Michigan from 1983 to 1991 and consultant and fixer Adolph Mongo with Dick Morris is another ques- later the U.S. trade representative ambassador to Canada from 1993 to has done community activism work CUSTOMER SERVICE tion. He’s been unleashed locally and U.S. secretary of commerce. As 1996. He’s a $630-per-hour related to the bridge situation for MAIN NUMBER: Call (877) 824-9374 or write as an attack dog. a partner with Washington D.C.- consultant to the DRIC project as a Moroun. [email protected] based law firm Mayer Brown LLP, he subcontractor of the Southfield office SUBSCRIPTIONS $59 one year, $98 two years. “I’m delighted to have a Republi- Ⅲ Michael Waxman, a vice president Out of state, $79 one year, $138 for two years. did legal work for Manuel Moroun of Louisville-based The Corradino can governor; I just wish he’d act of Hyde Park Communications, was Outside U.S.A., add $48 per year to out-of-state during the Detroit River International Group. Corradino is a principal DRIC the bridge company’s Washington, rate for surface mail. Call (313) 446-0450 or like one,” he said last week on (877) 824-9374. Crossing environmental impact contractor, orchestrating D.C.-based outside public relations Frank Beckmann’s WJR AM 760 SINGLE COPIES: (877) 824-9374. comment period. Kantor said he environmental, traffic and engineering firm in 2009. Waxman is the son of REPRINTS: (800) 290-5460, ext. 125; (717) 505- show. hasn’t done any work for Moroun in studies. Blanchard is co-chairman of U.S. Rep. Henry Waxman, D-Calif., 9701, ext. 125; or ashley.zander@theygsgroup Morris works as a Fox News an- about 18 months and declined to the government affairs practice group who unseated Michigan’s John .com. TO FIND A DATE A STORY WAS PUBLISHED: alyst and is an author and hired- discuss any specifics of the in the Washington, D.C., office of law Dingell as head of the powerful (313) 446-0367 or e-mail [email protected]. gun political consultant for cam- relationships because of attorney- firm DLA Piper. He was hired as a House Energy and Commerce paigns in Latin America, Europe client confidentiality. DRIC consultant in 2007. Committee in 2008. CRAIN’S DETROIT BUSINESS IS PUBLISHED BY CRAIN COMMUNICATIONS INC. and Africa. He also writes political CHAIRMAN Keith E. Crain columns for the New York Post and Michigan’s bridge costs in return D.C.) takes him seriously, but I’m to now by its study name, the De- PRESIDENT Rance Crain for up to $2 billion in federal road quite confident that his reputation troit River International Crossing, in a SECRETARY Merrilee Crain The Hill. TREASURER Mary Kay Crain He was the architect of Presi- funding for the state. among Republican political con- surprise mention during his State Executive Vice President/Operations dent Bill Clinton’s “triangulation” “(Morris) could deliver a mes- sultants is quite low.” of the State address in January. William A. Morrow Group Vice President/Technology, strategy of adopting centrist and sage at the federal level that pre- Canada opposes Moroun’s pro- Manufacturing, Circulation Republican positions to appeal to a vents money from getting into ject because it prefers government Robert C. Adams Snyder’s silence Vice President/Production & Manufacturing wider set of voters. Michigan,” she said. “If somehow ownership of border crossings, Dave Kamis But Morris had a high-profile fall that (money) gets barricaded or Snyder has not staked out a pub- and fears downtown Windsor can’t Chief Information Officer Paul Dalpiaz from grace: He was forced to resign eliminated as an incentive, that lic position on Moroun’s project, handle increased commercial traf- Corporate Circulation/Audience Development gives Moroun and his folks that and his press relations staff didn’t fic. Canadian officials say Moroun Director from Clinton’s White House be- Kathy Henry cause of a prostitution scandal. much more of a shot at their deal.” provide an answer when asked if hasn’t submitted the proper regu- G.D. Crain Jr. Founder (1885-1973) He’s subsequently been criticized Others are skeptical of Morris’ the governor supports or opposes latory environmental paperwork. Mrs. G.D. Crain Jr. Chairman (1911-1996) effectiveness. the $1 billion plan to twin the Am- Michigan’s business community EDITORIAL & BUSINESS OFFICES: for off-target political predictions. 1155 Gratiot Ave., Detroit MI 48207-2732; (313) “I’m not sure Dick Morris would “Some Republicans on Capitol bassador Bridge — a project which and some political leaders believe 446-6000 have been on the top of my list,” Hill seem to value his insights. But Moroun says he’s spent $500 mil- both new bridges are necessary for Cable address: TWX 248-221-5122 AUTNEW DET CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 Rossman-McKinney said. “I don’t Dick Morris has plenty of detrac- lion on so far, but doesn’t have U.S. the state’s economy and future trade is published weekly, except for a special issue the third week of January, a special issue the fourth think of Dick Morris as the most tors in D.C., who regard him as a or Canadian approvals. growth, but are quiet in their sup- week of August, and no issue the third week of credible messenger around.” flim-flam who sells snake oil and is Asked about Snyder’s position on port for Moroun’s project because December by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals He could benefit Moroun more mostly about self-promotion,” said the second Ambassador Bridge pro- he’s a lightning rod for criticism. postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send address changes to in Washington than in Lansing. Stuart Rothenberg, editor and pub- posal, his press secretary, Sara Forbes magazine estimates Mo- CRAIN’S DETROIT BUSINESS, Circulation Morris could have some sway in lisher of the nonpartisan Rothen- Wurfel, said via e-mail, “The gover- roun is worth $1.7 billion, but some Department, P.O. Box 07925, Detroit, MI 48207- 9732. GST # 136760444. Printed in U.S.A. the Republican-controlled U.S. berg Political Report in Washing- nor can’t and doesn’t deal in hypo- say he is worth twice that or more Entire contents copyright 2011 by Crain ton, D.C., via e-mail. theticals.” because of his private holdings. Communications Inc. All rights reserved. House to stall or bring scrutiny on Reproduction or use of editorial content in any Snyder’s deal to leverage Canada’s “I’d guess that the Fox crowd Snyder unveiled his support for Bill Shea: (313) 446-1626, manner without permission is strictly prohibited. offer to cover up to $550 million of (which includes a chunk of folks in the public bridge project, known up [email protected] 20110314-NEWS--0030-NAT-CCI-CD_-- 3/11/2011 5:48 PM Page 1

Page 30 CRAIN’S DETROIT BUSINESS March 14, 2011 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF MARCH 5-11

round-trip transportation from East Lansing, Ann Ar- Alfred Taubman WINNERS HONORED bor and Detroit. Street art Students can register by March 18 at www. richest resident michiganadvantage.org /Live-Work-Detroit. in metro Detroit to address The fee is $10, and regis- trants must upload a ré- sumé. For details, contact ith a personal Stefanie Ridenour at worth estimated at W $2.3 billion, shop- [email protected]. street life ping mall developer A. Al- Palmer Woods series fred Taubman is the wealthi- he Heidelberg Project NEI may aid TechTown est metro Detroit resident, founder Tyree Guyton features Grammy winner according to Forbes maga- AARON ECKELS T is planning to cover The New Economy Initiative zine’s latest A team from Walsh College was presented with the a street in Midtown for sev- may help the TechTown Five-time Grammy annual list Association for Corporate Growth Cup at Crain’s M&A eral weeks. The medium? tech park and incubator Award winning jazz bassist of the Awards event Thursday at the Somerset Inn in Troy. The team of students — (from left) Dan Chenoweth, Jim Cook Shoes. pay down debt on its Tech I Robert Hurst, a longtime world’s bil- and Brian Lemon) — bested five other business schools for The “Street Folk” instal- building, Crain’s has member of the house band lionaires. learned. for “The Tonight Show” best business case presentation. With them is Leslie lation will Taubman, Sheidler, chair of the ACG Cup committee and senior NEI, a group of 10 founda- with Jay Leno, will perform cover the 87, is director of mergers and acquisitions for Kelly Services. tions that have collectively March 26 as part of the block of Ed- ranked as Also honored at the event were Crain’s M&A award winners: committed $100 million to Palmer Woods Music in mund Place the 512th- Grede Holdings LLC (Deal over $100 million); Level One local economic develop- Homes Series. richest per- from Wood- Taubman Bank/Paramount Bank (Deal under $100 million); ward Av- ment efforts, confirmed it Hurst, who’s performed son in the BlackEagle Partners LLC (Dealmaker Buyer/Seller); and enue to has a board meeting sched- with artists including Wyn- world and 170th in the U.S. Seneca Partners Inc. (Dealmaker Adviser). John R. It’s uled for this week but de- ton Marsalis, Tony Williams, Also on the list from Lifetime Achievement honorees were Mary and Brian meant to ad- clined to comment on its jazz singer Diana Krall, Sting metro Detroit: Mike Ilitch Campbell. Mary Campbell is co-founder of EDS Ventures, and crooner Harry Connick Jr., dress the is- agenda. and family (rank 736, the state’s oldest venture-capital firm. Brian Campbell has Guyton is the son of the late Robert sue of TechTown declined com- $1.7 billion, up from $1.5 bil- been involved in the acquisition of more than 120 Hurst Jr., Michigan Bell Tele- companies over the course of his career with Masco Corp., homelessness. “How can ment but confirmed that it lion last year), who own the phone Co.’s first African- Kaydon Corp. and as owner of Campbell Industries Inc. we not see it?” he said of has $12 million left to pay Little Caesars pizza chain American president. He has people sleeping in doorways on $13 million in debt taken and the Detroit Tigers and a residence in metro Detroit and on heat vents. “We’re out between 2004 and 2007 to ness officer and senior vice $68.5 million settlement and teaches in the University Red Wings; Manual “Matty” all a paycheck away from build out its Tech I build- president of community with 37 states as a result of of Michigan School of Music, Moroun (rank 736, $1.7 bil- the streets.” ing. health and equity; Sue a lawsuit against drug man- according to the Palmer lion, down from $1.8 billion University Cultural Center Hawkins, vice president of ufacturer AstraZeneca, cen- Woods Association. last year), the trucking in- Association President Sue planning and performance tered on the alleged off-label MEDC tours tout Detroit Hurst will be joined by dustrialist best known for Mosey helped obtain permis- management, becomes se- marketing of antipsychotic guitarist A. Spencer his ownership of the Am- sion from the city for the to college students, grads nior vice president of per- drug Seroquel, Michigan Barefield, a 2010 Kresge Foun- bassador Bridge; Roger project, said Heidelberg formance management; Attorney General Bill On March 25, the Michi- dation Artist Fellow, per- Penske (rank 879, $1.4 bil- Project Executive Director David Lee, vice president of Schuette announced. gan Economic Development forming in a 1928 French lion, up from $1.3 billion Ⅲ Jenenne Whitfield. legal affairs, becomes gen- Gov. Rick Snyder signed Corp. will offer tours of the Eclectic style home in De- last year), founder of Bloom- eral counsel and vice presi- a bill into law Thursday Guyton, a 2009 Kresge vi- city of Detroit to college stu- troit’s Palmer Woods neigh- field Hills-based Penske dent of the system; and Edie that drops an additional sual arts fellow, is prepar- dents and recent college borhood. Corp.; and William Clay Ford Eisenmann, vice president of $10 million into the popular ing the work as part of Kres- graduates. Tickets are $35 each. For Sr. (rank 993, $1.2 billion), governance, becomes chief Pure Michigan advertising ge Arts in Detroit’s “Art X “Live Work Detroit,” a details, visit www. owner of the Detroit Lions. governance officer and sys- program for regional cam- Detroit” series, produced by talent-retention program, palmerwoods.org. tem vice president. paigns, AP reported. The the UCCA. Kresge Arts in tours the city’s top work- extra funding will be Detroit is a fellowship pro- places, housing and enter- ON THE MOVE moved from the state’s 21st gram funded by The Kresge ITS IECES tainment. B & P Ⅲ The John S. and James L. COMPANY NEWS Century Jobs Fund. Foundation and adminis- High-tech startups, cut- Ⅲ Farmington Hills- Knight Foundation has Ⅲ Ⅲ The Michigan Senate tered by the College for Cre- The New York Stock Ex- ting-edge medical re- based advertising firm Duf- named Rishi Jaitly, a former change will officially re- has approved bills that ative Studies. searchers, fashion trendset- fey Petrosky & Co. on Feb. 8 Google executive, as a pro- move the BGP ticker sym- would give broad new pow- Art X works will appear ters, hot restaurants, received the 2010 Blue Cross gram director based in De- bol from its list March 21, ers to emergency financial at Midtown museums, gal- world-renowned museums Blue Shield of Michigan Di- troit. In 2010, Jaitly and his citing the bankruptcy filing managers over objections leries and businesses April and affordable places to live versity Champion Award, wife, Anuja Jaitly, founded by Borders Group Inc. The of union members. The 6-10. Some works, including are all on the agenda for the given annually to a tier-one Michigan Corps, a Detroit- NYSE suspended trading House passed similar legis- Guyton’s, will stay up tour, which will conclude BCBSM supplier, for the based nonprofit, to foster for Borders on Feb. 16, after lation. Once differences are longer. Also planned are with a networking recep- agency’s inclusion of diver- education and entrepre- it filed Chapter 11. resolved between the ver- panel discussions, perfor- tion with employers, com- sity in its marketing strate- neurship in the state. Ⅲ Magna International sions, the bills head to Gov. mances and readings. munity leaders and young gies, communications and Ⅲ Eight executives at Inc.’s interiors plant in Rick Snyder for signature. professionals. expenditures for Blue For full story, see Detroit- Henry Ford Health System in Howell was operating at 80 Ⅲ Oakland County re- MakeItHere.com. The MEDC will provide Cross. Detroit have been promot- percent capacity late last ported seven successful ed in a shuffling of respon- week after a March 2 fire deals in February, four sibilities: Bob Riney, execu- damaged about 40 percent with emerging sector companies committing to in- tive vice president and of the 187,000-square-foot vest nearly $8.6 million COO, has been named pres- plant, forcing General Mo- countywide and add 192 ident and COO; CEO Nancy tors Co. and Mazda Motor jobs. Three of the deals BEST FROM THE BLOGS Schlichting gave up her title Corp. to cut production. as president; Mark Kelley, reached were with automo- READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS Ⅲ Holders of General Mo- M.D., executive vice presi- tive suppliers to invest tors Co. stock may receive a dent and CEO of Henry Ford nearly $7.8 million and add dividend as early as 2012 af- Detroit pro sports teams’ debt FDIC vs. World’s Foremost Bank Medical Group, now also is 218 new jobs. ter GM funds its pension, chief medical officer of the Barclays Capital analyst Bri- How much of an It turns out the health system; Jim Connelly, issue is debt for a team? World’s Foremost Bank an Johnson reported. OBITUARIES “ “ CFO and senior vice presi- Ⅲ ... University of Michigan has about the world’s dent, adds the title of execu- Novi-based Trinity Ⅲ Peter Ardwin, who sports business most focused business Health has signed a letter of founded an ice cream dis- professor Rodney Fort model. It is a subsidiary tive vice president of finance and administration; intent to acquire Loyola Uni- tributing company that be- told me that team debt of the outdoor giant versity Health System, a sub- can be both good and Cabela’s Inc., ... and the Bill Alvin, CEO of Health Al- came Ardwin-Hays Co., died bad. bank was created to do liance Plan, also becomes ex- sidiary of Loyola University Feb. 23. He was 84. one thing and one thing ecutive vice president of Chicago. Ⅲ Katherine Gribbs, wife of ” only. the health system; Kimberly- former Detroit Mayor Ro- dawn Wisdom, M.D., vice man Gribbs who had a clini- Reporter Bill Shea’s “Shea’s Stadium” blog on the Reporter Tom Henderson’s blog” about accounting, president of community OTHER NEWS cal counseling practice in business of sports can be found banking, venture capital and high tech can be found health, education and well- Ⅲ Michigan is slated to Detroit, died March 4 of at www.crainsdetroit.com/sheasstadium at www.crainsdetroit.com/henderson ness, becomes chief well- receive $2 million of a natural causes. She was 78. DBpageAD.qxp 3/4/2011 2:53 PM Page 1

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