Bridge On; Now Who Gets Jobs?

20120618-NEWS--0001-NAT-CCI-CD_-- 6/15/20125:27PMPage1 ©Entire contentscopyright2012byCrainCommunicationsInc.Allrightsreserved LLC. Miller Inc. Inc. cia NorthAmerica include portunity topassup,”hesaid. Detroit wastoogoodanop- be partoftherevitalization in Portland,butthechanceto fice. “Iwaslivingthegoodlife Ore., toopentheDetroitof- months agofromPortland, Web development. with afocusonmobileand the nexttwotothreeyears, the endofyearand25in 12 employeesintheofficeby developers andhopestohave ing softwareengineersand Detroit office,saidheishir- Bruce Watson building. Managingpartner top floorofthethree-floor 2,600-square-foot officeonthe employs threeinits 2001, and aroundHarmoniePark. panies thathavetakenrootin joining theinfluxoftechcom- Harmonie PointeBuilding— office lastWednesdayinthe custom software,openedan Rapids-based developerof in sparetime?Appcreation What’s medstudentdoing developers, Page19 Largest mobileapp direction in anew plans move RobotTown its urbanfootprint in HarmoniePointeBuilding Another techfirmsopens

0NEWSPAPER www.crainsdetroit.com Vol.28,No.25 Crain’s Crain’s This JustIn Page 3 Atomic Object’scustomers Watson wasrecruitedtwo Atomic Object, Atomic ObjectLLC Priority Health Lists and — TomHenderson Fashion sneaker , whowillrunthe Chrysler Group chain preps founded in , aGrand expand to , , Herman Faure- cession. That’simportanttothestate, are makingacomebackfromthere- why Michigansmallmanufacturers are severalofthetrendsthatshow Township. be make inMichigan,itprobablywould the impactthatsmallmanufacturers sides oftheborder. construction tradesonboth employment boomfortheheavy Detroit Riverwillfuelamini- billion highwaybridgeoverthe reached anaccordtobuilda$2.1 Michigan andCanadahave Small companies play instate’s bigrole recovery Manufactured comeback Work expectedfor ‘hundreds offirms’ Bridge on;nowwhogetsjobs? around ownerandPresidentDavidMiller.“Weuseoursmallsizetoadvantage;westaylightonfeet,”hesaid. Industrial glazierDuo-GardIndustriesInc.evolvedtomakebuildingcomponentsliketheplastic-wrappedskylightpanes Wrapped upinjustonecompany If evertherewasaposterchildfor Friday’s announcementthat Duo-Gard IndustriesInc. CRAIN’S DETROITBUSINESS B CRAIN’S DETROITBUSINESS Y B M Y ATTHEW B ILL S HEA G RYCZAN in Canton ated BuildersandContractorsof construction tradegroup er, presidentofLansing-based starting (now),”saidChrisFish- seeing theinfluxofinterest stretch fourormoreyears. course ofaprojectexpectedto Michigan andOntariooverthe ploy thousandsofworkersin “I thinkyou’regoingtostart The projectisexpectedtoem- What’s theconnection thousand inasummer—onething multinational giantthathiresa ple overthecourseofayearor companies thateachhireafewpeo- manufacturing —thousandsofsmall about whocreatesthemostjobsin fewer than500people. ing areemployedbycompanieswith every 10ofitsworkersinmanufactur- considering thatnearlysevenof JUNE 18–24,2012 between aqualified While theargumentmayrageon workforce andour community? See Comeback,Page24 Associ- small aspectoftheproject. firms thateachmayhandleone prime contractorstospecialty the six-lanetollbridge,from sign, finance,buildandoperate from companiesthatwanttode- Michigan The lateststudypredictsthe Interest isexpectedtocome to success, bounty tocome, gardening harvesthintat S . ECOND Award winnerspointway First fruitsofeconomic See Bridge,Page25 S TAGE Pages 13-16 aln omnt olg.Yes, OCC. Oakland Community College. LON HORWEDAL Page 11 E XTRA B breakdown: N.Y. Here’sthe Bridge inBuffalo, Huron andthePeace Water BridgeinPort staffing attheBlue span itself,basedon jobs foroperatingthe permanent full-time create 775 the newbridgewill MDOT estimatesthat IG JOBS RIDGE Community isourmiddlename. and sevenfederalagencies. the ration of11privatefoundations, Chicago-based $268,500 grantfortheprojectfrom Annemarie Ericksonsaid. (or) …readthenewspaper,”COO ture aboutart hear ashortlec- listen tomusic, people hangout, ing roomwhere have itbealiv- like …toreally Fi andlecturers. mances, freeWi- musical perfor- new seating,live spots, withenhancementssuchas front lawncouldserveasgathering Kresge Courtinnercourtyardand calls aculturallivingroom. to changethatbycreatingwhatit few. but placesforthemtogatherare and livinginMidtownthesedays, on itspublic spaces DIA collectsideas ‘living room’ a Midtown Creating www.oaklandcc.edu The DIAlastweeksecureda “We would The DIAisconsideringhowits The A lotmorepeoplearevisiting ainlEdwetfrteArts National Endowmentforthe CRAIN’S DETROITBUSINESS Detroit InstituteofArts B Y S HERRI See Livingroom,Page22 ArtPlace, administration maintenance Border Protection Customs and $2 acopy;$59year Erickson 10 in 75 atduty-free 20 in 70 attolls 200 brokers 400 U.S. W ELCH a collabo- hopes ® 20120618-NEWS--0002-NAT-CCI-CD_-- 6/15/2012 4:05 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS June 18, 2012

MICHIGAN BRIEFS Open Systems Technologies sells a space and lease it to retailers to sell a range of general merchan- majority stake to Alaska firm City survey: Emergency managers beat the alternative dise.” Open Systems Technologies Inc., an information technology ser- The majority of voters in Michigan cities with CEO, said in a statement. “In fact, residents in these MICH-CELLANEOUS vices company that employs about emergency managers said they disapprove of that communities overwhelmingly believe that their city 100 full-time employees at its head- oversight — but they also say their municipalities budget is better managed under the emergency Ⅲ So who says solar is sunk? quarters in Grand Rapids and would be worse off without them, according to a sur- manager than by their city council.” Midland-based Dow Kokam said it satellite offices in Ann Arbor and vey commissioned by Business Leaders for Michigan. The survey by Chicago-based Glengariff Group Inc. will add a 60,000-square-foot build- Minneapolis, has sold a majority Voters in Benton Harbor, Ecorse and Pontiac say was conducted in May with 800 registered voters di- ing to its Midland Battery Park, stake to Koniag Development Corp. their communities would be worse without the ap- vided evenly among the four cities. where 95 people now work as the in Anchorage, Alaska. pointment of a financial manager, while the majori- By overwhelming margins, residents in all four park prepares for an official open- OST President Daniel Behm ty of Flint voters say the city’s situation would not cities said they would rather have an emergency man- ing this summer. The new build- said his company will not be mak- have changed. ager than bankruptcy. And by a margin of 42 percent ing will house production of storing any changes in management “While the residents of the four cities with emer- to 19 percent, voters said the emergency manager had age packs for lithium-ion cells and or employment because of the gency managers may not like having an emergency handled the budget better than the city council. battery management systems. transaction with Koniag, which manager, the majority of residents in every case are Additionally, more than twice the number of vot- Ⅲ The Synod of the Christian Re- he described as an investment optimistic about their city’s future and strongly pre- ers said they expect the situations in their cities to formed Church of North America last partner with an extensive track fer an emergency manager to bankruptcy courts,” improve than said they do not expect improvement. week confirmed the appointment record of hands-off management. Doug Rothwell, Business Leaders president and — Ryan Kelly of Michael Le Roy as president of More than 30 OST employees con- Calvin College in Grand Rapids. tinue to hold stock in the compa- land region of Alaska. Michigan residents, add this: Peo- father, founder Hendrik Meijer, Ⅲ Proceeds from Grand Rapids’ ny, Behm said. OST, founded in 1997, posted ple who call Meijer Inc. stores “Mei- noticed discount stores selling Festival of the Arts fell 29 percent in Tom Panamaroff, president and revenue of about $68 million last jer” and people who call them products the way self-serve gro- combined food booth sales and art CEO of Koniag Development, said year in IT services for the health “Thrifty Acres.” cery stores did. sales compared with last year. The in a news release that his company care, manufacturing and distribu- Thrifty Acres combined gro- “You had a new generation of re- first two days of the June 1-3 event invested in OST “due to its strong tion, and finance and insurance ceries with general merchandise tailers who were trying to apply were cold and rainy. Enough said. leadership and an impressive track industries. For five years in a and in the process created the the techniques of supermarket Find business news from record of delivering exceptional re- row, it has been named to the an- phrase “one-stop shopping.” shopping to other categories,” around the state at crainsdetroit sults for numerous clients.” nual Inc. 5000 list of America’s Beginning with that first Thrifty Fred Meijer said. When the Mei- .com/crainsmichiganbusiness. Koniag Development’s website fastest-growing, privately held Acres 50 years ago this month in jers couldn’t persuade a discount Sign up for Crain's Michigan states that it is a subsidiary of Koni- companies. Grand Rapids, Meijer has morphed retailer to open next to their Business e-newsletter at crains ag Inc., one of the 13 Alaska Native — Matthew Gryczan to employ 60,000 at 198 stores, four stores, “they decided to build out detroit.com/emailsignup. regional corporations established distribution centers and several in 1971 by the Alaska Native Claims manufacturing sites covering five Settlement Act. states. Annual sales for the Walker- CORRECTION With a diverse portfolio of invest- Meijer celebrates 50 years of based company are estimated at Ⅲ A letter to the editor June 11 by Kurt Gallinger, “FOIA doesn’t ap- ments in real estate and operating ‘Thrifty Acres’ (ask your parents) more than $14 billion. ply,” should have said he is chairman of the Michigan Insurance Coali- companies, Koniag represents the According to a report from tion, not the Michigan Catastrophic Claims Association. Alutiiq people from the Kodiak Is- Among the ways to categorize MLive.com, Fred Meijer and his

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June 18, 2012 CRAIN’S DETROIT BUSINESS Page 3 Villa laces up for big step RobotTown Second Stage Extra organizers into local urban markets build a new Michigan to get 25 fashion sneaker stores strategy BY SHERRI WELCH Pure Michigan Business CRAIN’S DETROIT BUSINESS Focus is industry Athletic fashion retailer Villa Connect helps data center plans to bring 25 stores to Michi- research locations, Page 11 gan over the next 18 months, contests, events many to urban areas other retail- BY CHAD HALCOM ers shun. CRAIN’S DETROIT BUSINESS The Philadelphia-based compa- Company index ny plans to spend $250,000 per Organizers of RobotTown Inc. are store or $10 million to build out taking a new approach to build These companies have significant mention in this Lutz the stores, which will create 250- traction as a player in the local ro- week’s Crain’s Detroit Business: 375 jobs, the company said. Villa, The “shoe wall” botics industry before rolling out AGIS ...... 7 incorporated as Sneaker Village display at a Villa the research consortium, laborato- Alfie Logo Gear ...... 12 Inc., is looking primarily for store. ry and education center proposal Ann Arbor Spark ...... 17 COURTESY OF VILLA downtown and urban sites. But it announced last year. Associated Builders and Contractors of Michigan . . 1 also locates some of its stores in up more than 20 sites, President downtown Detroit. Co-founder and President Mark Atomic Object ...... 1 regional malls to attract young, Scott Griffin said. Urban neighborhoods in Michi- Salamango of RobotTown said the Broaching Machine Specialties ...... 16 urban, hip customers. Many of Villa’s first Michigan store will gan have been underserved and Michigan Economic Development Corp. Business Accelerator Fund ...... 17 them are black or Hispanic. open in Detroit at Grand River represent a big opportunity for could award RobotTown up to a Business Leaders for Michigan ...... 2 Villa’s Southfield-based real es- Avenue and Greenfield Road on Villa, said Lutz, 38. $50,000 matching funds grant, which Business-to-Business Network ...... 17 tate broker, Griffin Properties Inc., June 28. “We tend to find trends start in its executives may allocate in part Citizens Republic Bancorp ...... 4 already has lined CEO Jason African-American communities toward microgrants for students or Conway Mackenzie ...... 26 Lutz said he and filter out from there,” he said. businesses with robotics projects. Detroit Institute of Arts ...... 1 is also con- Villa’s athletic shoes and appar- The MEDC reviewed that request Duo-Gard Industries ...... 1 sidering a el are fashion-driven more than but asked RobotTown on Friday to E200 Emerging Leaders Training ...... 17 store on performance-driven. Athletic submit a new business plan. Economic Gardening Program ...... 11, 17 Woodward shoes make up about two-thirds of RobotTown was also a co-spon- ePrize ...... 4 Avenue in the offerings in its stores and re- sor of the Association for Unmanned Federal-Mogul ...... 20 flect the hottest trends, whether a Vehicle Systems International annual Finance Advisory Solutions ...... 17 new Nike release or a street brand, Driverless Car Summit last week 5-Hour Energy ...... 26 Lutz said. The company is capital- at the MotorCity Casino Hotel. Fulcrum Edge ...... 17 izing on the continual growth in The new approach is a bit more Future Hosting Technologies ...... 13 “sneakerhead” culture. modest than the push for a $10 mil- Henry Ford Health System ...... 16 Similarly, Redford Town- lion investment to build out a com- Hub of Detroit ...... 16 ship-based Mr. Alan’s plete living laboratory concept as Industrial Visions ...... 17 operates eight discussed last year. But Salamango JC Beal Construction ...... 14 sportswear appar- and co-founder/senior strategist Marketplace Homes ...... 14 el stores across Corey Clothier said the organiza- Meijer ...... 2 metro Detroit, tion is building new contacts and Michigan CFO Associates ...... 17 drawing more support from the Michigan Economic Development ...... 3, 11, 12 See Shoes, Page 22 business community by getting in- Michigan PeerSpectives Network ...... 17 volved in industry events first. Mr. Alan’s ...... 3 “The focus is becoming fluid Oakwood Healthcare ...... 6 These Lebron 9 Elite South Beach shoes, new Online Tech ...... 11 from Nike, sell for $250 at Villa. See RobotTown, Page 23 Open Services Technologies ...... 2 Phimation Strategy Group ...... 17 Preferred Solutions ...... 14 ProtectCell ...... 16 RobotTown ...... 3 WSU med student creates app company – in spare time Severstal North America ...... 4 Shepherd Advisors ...... 13 Spectrum Commercial Services ...... 17 UnlimApps tops 2 million downloads State Trade Export Promotion ...... 17 Tecumseh Products ...... 7 UEP Detroit ...... 17 BY TOM HENDERSON bor-based UnlimApps Inc., has UnlimApps ...... 3 CRAIN’S DETROIT BUSINESS earned more than $100,000 in ad revenue in the past two years. Ventower Industries ...... 12 Medical school is workload UnlimApps is the fourth-largest Villa ...... 3 enough for most students. But not developer of apps on Crain’s list of VZL ...... 23 for Enea Gjoka, largest mobile app developers, with Wayne State University ...... 3, 6 who will start 2.3 million downloads as of May. Zoup! ...... 14 his second year TECH TALK Gjoka’s most popular app is Un- of med school at Crain’s list of limDownloads, which speeds up Wayne State Uni- largest mobile video. It had 1.6 million downloads versity this sum- app developers, as of last month. Department index mer. Page 19 Other apps he has developed BANKRUPTCIES ...... 4 Gjoka, 22, is Partners prep have 700,000 downloads — includ- also something social media ing UMBus, which tells Ann Arbor CALENDAR ...... 21 of a Renais- fashion site, bus riders where the closest bus JOB FRONT ...... 20 sance man of Page 23 stop is and when the bus is due to CLASSIFIED ADS ...... 21 the iPhone and arrive, and Color Mail Label, which TOM HENDERSON KEITH CRAIN...... 8 iPad, a business owner whose app Enea Gjoka says he’s committed to becoming an oncologist, but for now he’s LETTERS...... 8 development company, Ann Ar- See Apps, Page 23 making his mark in smartphone app development. MARY KRAMER ...... 9 OPINION ...... 8 Holding a business event? Get a job, or advertise one OTHER VOICES ...... 8 Crain’s, with HiredMyWay.com, has THIS WEEK @ Click the “Events” tab on top of the PEOPLE ...... 20 page at crainsdetroit.com to post an online system for employers and WWW.CRAINSDETROIT.COM on our online Local Events Calendar. job-seekers. Go to crainsdetroit.com to explore Crain’s Job Front. RUMBLINGS ...... 26 WEEK ON THE WEB ...... 26 20120618-NEWS--0004-NAT-CCI-CD_-- 6/15/2012 3:36 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS June 18, 2012 Be honest with employees, clients about company finances, CFOs say at summit

BY DANIEL DUGGAN CRAIN’S DETROIT BUSINESS

Communicating with employees and clients about a company’s finances is crucial in good times and bad. That was one of the messages from CFOs during the Crain’s CFO Summit last week at The Inn at St. John’s in Plymouth Town- ship. As Dearborn-based Severstal North America had to reduce its revenue from $8.2 billion in 2008 to $3.4 billion in 2011, the goal for executives was just to be honest with employees, CFO Mark Yost said during a panel discussion at Tues- day’s event. “We’d just say, ‘Look, this is what is going on, this is what I know, and this is what I don’t know,’ ” he said. BRENDAN ROSS “But you have to recognize that, From left, Lisa McNeely, CFO of Citizens Republic Bancorp Inc., and Mark Yost, especially when things are bad, CFO of Severstal North America, talk with Crain's Deputy Managing Editor there is a black hole of informa- Daniel Duggan last week during a session at Crain’s CFO Summit. tion. And if you aren’t the one fill- ing with information, someone In the public sector, communi- “There was an idea, every year, else is going to, and then you have cating the problems is the key to that they needed to make things no idea what kind of information solving them, said Lt. Gov. Brian just good enough to make it into is getting out.” Calley, the keynote speaker. the next year,” he said. “We had to Likewise, as quarterly report af- He said that for too many years, be honest about how bad things ter quarterly report showed bad Michigan’s budget concerns were were, and only then can we start to news for Flint-based Citizens Re- mounting due to a lack of action fix the problems.” public Bancorp Inc., the executives and a lack of willingness by legis- Daniel Duggan: (313) 446-0414, made sure to get the word out to lators and departments to confront [email protected]. Twitter: employees. In that case, the CEO, the real financial problems. @d_duggan Cathleen Nash, created a blog and gave regular updates, said CFO Lisa McNeely. The honest information needed to get to employees and clients, Mc- Your gift card from Neely said, “because the one thing that we knew is that we’d eventual- Congress is expiring... ly come out of it, and we’d need to continue to have a franchise.” Don’t wait to find out how much benefit your heirs But the practice of communicating financial information isn’t lim- could realize from your tax free gift this year. ited to bad times. Craig Sprinkle, CFO of Pleasant Ridge-based ePrize LLC, said that after imple- Congress’ gift menting a prac- to your heirs tice of giving employees regular information about the com- $5,000,000 pany’s finances, the executive team was able to Sprinkle use that information to motivate people. “When you’re showing them op- GIFT CARD erational information, then they Expires December 31, 2012 know how they feed into that, and CATERING how they can improve it,” said Sprinkle, one of the winners of the Crain’s CFO Awards, along with “The Pig Roast was a big hit Yost and five others. In December of 2010, President Obama signed into law and great end to the day. an unprecedented tax legislation that allowed, for a limited Nothing but smiles from ear to ear. Way beyond our time, a cumulative, maximum lifetime transfer of up expectations.” BANKRUPTCIES to $5 million per person – estate and gift tax free. - Philip Shelton - Tournament Director U.S. Amateur Disc Golf Championship The following businesses filed for Download our white paper Chapter 7 protection in U.S. Bankrupt- to learn more about this law and how cy Court in Detroit June 8-14. Chapter Catering Food Service Management 7 involves total liquidation. Schechter can maximize your gift to heirs. Outkast Kustoms LLC, 12737 Inkster Visit: www.schechterwealth.com/giftcard Road, Livonia, voluntary Chapter 7. Celebrating more than 30 years of Assets: $0; liabilities: $7,046. V.R. Entertainment Network Inc., 8075 spectacular events. Lake Crest Drive, Ypsilanti, voluntary Chapter 7. Assets and liabilities not available. 248.731.9500 248.608.0690 — Meghana Keshavan DBpageAD.qxp 6/14/2012 3:47 PM Page 1

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Page 6 CRAIN’S DETROIT BUSINESS June 18, 2012 WSU physician group to move staff to Troy, ramp up surgery center BY JAY GREENE has co-owned with Oakwood Health- wood and the Wayne State medical group. venture entity for the building is CRAIN’S DETROIT BUSINESS care. group. In 2011, the Oakland Physicians OHS/UPG Ventures, a nonprofit enti- The four-story, 175,000-square- But the downturn in the econo- Surgery Center LLC was formed to ty created by Oakwood Healthcare Wayne State University Physician foot building — the old Saturn my starting in 2007 caused Oak- sell ownership shares of the mul- Inc. and the Wayne State Universi- Group will relocate about 230 em- Corp. world headquarters at 1420 wood and Wayne State to delay ti-surgery center to physicians ty Physician Group. ployees from Detroit in mid-July Stephenson Highway — was pur- plans to build a health care facili- and preserve a previously ap- Mascia said leasing an 8,800- to a new administrative and chased in 2006 for $16 million in a ty, said Robert A. Frank, M.D., proved certificate of need applica- square-foot ambulatory surgery surgery center building in Troy it 50-50 joint venture between Oak- CEO of the Wayne State medical tion for two operating rooms, area on the first floor for Oakland Frank said. Physicians will generate additional So far, 16 physicians have invest- revenue for the medical group and ed in the surgery center, including Oakwood. The surgery center, several physicians in the Wayne which could grow to four operating State medical group, said Richard rooms and six post-surgery rooms, Knuff, president of Empire-based is expected to open in October. R.J. Knuff Co., a surgery center con- Knuff said six to eight employ- sultant hired by Wayne State. ees will be hired at the surgery “We expect to add many more center to accommodate an expect- doctors as word gets out” about in- ed 3,000 first-year surgery cases. vesting in the surgery center and Annette Bac-Lopez, a registered about leasing medical offices, nurse, has been hired as the cen- Knuff said. ter’s administra- Them The Wayne tor. State medical We ... have room “Surgery cen- group has a 5 per- “ ters like this help cent interest in to grow to cut the costs of the surgery health care be- center, Frank and be a cause they are so said. efficient,” Knuff “As we have bigger said. “Doctors matured as an like to bring their organization, presence patients because we found a it is convenient.” need to consol- in the Jim Cummins, idate everyone a principal with in one location region. The Cummins to gain efficien- ” Group, a Utica- cies, reduce over- Robert A. Frank, M.D., Wayne State based architec- head and gain University Physician Group tural firm, said more control the surgery cen- over our image and brand,” said ter is designed for circular flow Frank, who was hired as CEO last and has several physician-friend- year. “We also have room to grow ly design features. and be a bigger presence in the re- “There is a physician lounge di- gion.” rectly above the two operating Wayne State’s Troy medical rooms with a staircase (access)” building is two miles from Detroit for physicians to come and go in Medical Center Surgery Hospital between surgeries, Cummins said. in Madison Heights and five miles An urgent care center also is from Beaumont Hospital in Royal planned for the first floor, al- Oak. Officials from DMC and though Wayne State is still seek- Beaumont declined comment. ing an operator to run the after- Wayne State University Physi- hours primary care center from 5 cian Group is a nonprofit group p.m. to 10 p.m., Mascia said. practice affiliated with the univer- Physician and clinical offices sity and medical school. It is the will be located on the second floor second largest physician organiza- with the third floor now unoccu- tion in Southeast Michigan, with pied, Frank said. Wayne State 2,067 physicians, according to spent about $2 million on building Crain’s 2012 Book of Lists. St. John renovation costs. Providence HealthPartners is the “We have a lot of interest and largest, with 2,211 physicians. expect doctors to locate here de- Mark Kelley, M.D., CEO of De- pending on their surgery sched- troit-based Henry Ford Medical ules,” Frank said. “We have doc- Group, said operating an ambulato- tors in several departments (of ry surgery center can generate ad- Wayne State) who could share ditional revenue for the Wayne space here.” It’s not how many points you have — State medical group. Henry Ford The fourth floor will house employs 1,200 physicians and is Wayne State’s medical group em- it’s what you can do with them. With part of the five-hospital Henry Ford ployees, including those in fi- Health System and 475,000-member nance, marketing, provider rela- FlexPerks,® your points go farther. At just Health Alliance Plan. tions, human resources, “Historically, Wayne State was information services and billing. 20,000 FlexPoints you earn award ﬂ ights a federation (of physicians). Now Paula Rivera-Kerr, Oakwood’s they have decided to have a prac- media relations manager, said up to $400 in value on more than 150 tice plan that competes,” Kelley Oakwood has no plans to use the said. “They will need to build Troy building for administrative airlines. You can also redeem for cash or enough scale to compete effective- space. Oakwood recently moved merchandise. Choose FlexPerks for you ly” in the suburbs. about 650 administrative staff to After ending a $12.3 million con- expanded space in two Ford Land or your business. Apply at any U.S. Bank, tract dispute with Detroit Medical buildings in Dearborn. Center in 2009, the Wayne State Rivera-Kerr said it was too ear- ﬂ experks.com or 800-360-2900. medical group has been profitable ly to know how much revenue the last two years, earning $6 mil- Oakwood could generate from its lion in 2011 on revenue of $190 mil- share of leases in the Troy build- lion, Frank said. ing. By moving most staff to Troy, “The building is being shown to Wayne State expects to save about prospective tenants, but leases $200,000 annually on rent by using have not been signed with anyone The creditor and issuer of FlexPerks credit cards is U.S. Bank National Association ND, pursuant the building there instead of multi- to date.” to a license from Visa U.S.A. Inc., and the cards are available to legal United States residents only. ple buildings in Midtown, said Jay Greene: (313) 446-0325, ©2012 U.S. Bank. All rights reserved. Nicole Mascia, the medical group’s [email protected]. Twitter: chief operating officer. The joint @jaybgreene 20120618-NEWS--0007-NAT-CCI-CD_-- 6/15/2012 3:38 PM Page 1

June 18, 2012 CRAIN’S DETROIT BUSINESS Page 7 Investor wants Tecumseh focused on commercial compressor market

BY CHAD HALCOM sales. When a refrigeration system goes out at CRAIN’S DETROIT BUSINESS your local Kroger or other store down the street, that commercial user gets a replace- Tecumseh Products Co. may look for an exit ment compressor — and given the company’s from the residential component of its com- 80-year history, Tecumseh owns a huge por- pressor manufacturing business, if the com- tion of that market,” Roumell said. pany’s board of directors heeds a recent pro- “But the residential compressor is much posal from one of its largest investors. more of a commodity, it’s almost entirely an Investment management firm Roumell Asset OEM-controlled market where profits are Management LLC of Chevy Chase, Md., now being driven down by imports. By the time owns almost 3.6 million shares of Ann Arbor- the compressor goes out on your refrigera- based Tecumseh, after adding about 300,000 tor, or mine, you’re usually ready for a new new Class A shares of stock and more than refrigerator.” 250,000 new Class B voting shares in May. Roumell, who grew up in Southeast Michi- With the purchases, Roumell owns about 22 gan, was a principal at Raymond James Finan- percent of A shares and 13 percent of B shares. cial Services Inc. before founding Roumell As- James Roumell, president and lead portfo- set Management in 1998. He said his lio manager of the investment firm, submit- Tecumseh interest is unrelated to his Michi- ted a letter May 14 to Tecumseh’s board and gan roots. The company has a money-making the U.S. Securities and Exchange Commission business that can create sustained dividends recommending that the company exit its for investors if it weren’t saddled by other household refrigeration and freezers busi- money-losing operations, he said. ness and focus on commercial customers, Michael Noelke, senior vice president of which account for about 60 percent of its global sales at Tecumseh, said the company is more than $850 million in annual sales. The considering ways to adapt to the changing letter didn’t say whether it was advocating a compressors market, but he deferred com- sale or closure of the residential business. ment on the Roumell proposal to Connor, who Suzanne & Herbert Tyner He also called for selling a $67 million com- did not return two phone calls last week. pressor plant site Tecumseh owns in Hyder- Tecumseh (Nasdaq: TECUA, TECUB) re- Center for Cardiovascular Interventions abad, India, plus a foundry and plant in Brazil. ported a net loss of $73.2 million, or $3.96 per Roumell told Crain’s, however, that the share, on revenue of $864.4 million in 2011, firm is not looking to become a dissident or compared with $56.8 million, or $3.07 per activist shareholder and that there is no share, on revenue of $933.8 million the previ- timetable for the board to consider or re- ous year. Its stock price reached an all-time spond to his strategy. He supports company low of $3.10 on May 8, but surged over $1 to How Suzanne and Herb Tyner leadership under CEO James Connor and $4.70 the day of Roumell’s SEC disclosure. It Chairman Kent Herrick. was trading at $4.07 Friday morning. are setting higher standards “Slightly over 50 percent of the (commer- Chad Halcom: (313) 446-6796, cial) market is just aftermarket replacement [email protected]. Twitter: @chadhalcom for heart care across America.

Behind the advanced lifesaving procedures at Beaumont, behind our renowned cardiovascular surgeons and AGIS sale could begin consolidation cardiologists, are people in our community like the Tyners. among region’s health insurance agents Their generosity is literally helping to keep us at BY JAY GREENE er, Hylant will have about 107 employees in the forefront of heart care in America. Through the CRAIN’S DETROIT BUSINESS Southeast Michigan, in Troy and Ann Ar- establishment of a state-of-the-art center for interven- bor, and 27 elsewhere in Michigan. The acquisition last week of AGIS LLC, a While Nixon said he has heard from many tional cardiology, patients in Michigan, and around Birmingham-based employee benefits smaller agencies about cuts in insurance the country, will beneﬁt from leading-edge procedures agency, by Toledo-based Hylant Group could commissions, AGIS has not been as affected signal the official beginning of consolidation because the company serves larger groups of pioneered here at Beaumont. within the health insurance agent field in up to 1,000 employees and is a top-tier broker Southeast Michigan. with Blue Cross Blue Shield of Michigan. Heart disease remains the single greatest health threat to Over the past several years, as health in- Over the past two years, insurance commen and women, affecting approximately one third of the surers have cut agent commissions, nar- panies that include Blue Cross, Cigna, Hu- population. But the innovative treatments discovered at rowed broker networks and worked to im- mana, United Healthcare and Priority Health plement the Patient Protection and have cut commissions to meet federal regu- this center will help save millions of lives. Affordable Care Act of 2010, owners of small lations that require insurers to hold admin- agencies have told Crain’s mergers and con- istrative expenses under 20 percent of pre- Suzanne and Herb Tyner are an inspiration to all of us solidations are coming. miums. As a result, Mike Embry, a regional at Beaumont. And they remind us that it doesn’t take a Health care reform definitely played a vice president in Detroit for the National As- role in the decision to sell AGIS to Hylant, sociation of Health Underwriters, said he ex- medical degree to save a life. said Mike Nixon, CEO of AGIS and now vice pects many small agencies to merge or join president of Southeast Michigan operations larger companies to avoid up to 20 to 40 per- All it takes is a heart. for Hylant. cent cuts in commissions. But Nixon said there Nixon said another reason for the Hyant were other reasons, in- merger is to diversify into other employer- cluding diversifying and sponsored insurance lines and add addition- an effort to reap al expertise in several business lines. Those economies of scale, to include wellness programs, ERISA assis- merge his 70 employees tance, property and casualty risk manage- A Not-for-Proﬁ t Provider into Hylant’s 14 offices of ment, and benchmarking. Health care re- 700 workers in six states. form will require brokers to offer many Hylant and AGIS reported more compliance and consulting services to combined annual premi- clients, Embry said. ums of about $305 million. Embry said agencies are also diversifying Nixon Officials with Hylant into other lines of business beyond standard declined to state the purchase price of AGIS. medical insurance, including life insurance, Find out how you can save lives, too. If you would Nixon and about 20 agents and employees long-term disability, critical illness, acci- like to make a gift, please go to our website at will move to Hylant’s Troy office within the dent, cancer, dental and vision, he said. foundation.beaumont.edu or click on the code next few weeks. AGIS also employs 50 in Or- Jay Greene: (313) 446-0325, with your phone. lando and Jacksonville, Fla. After the merg- [email protected]. Twitter: @jaybgreene 20120618-NEWS--0008-NAT-CCI-CD_-- 6/15/2012 4:10 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS June 18, 2012 OPINION OTHER VOICES New bridge support Detroiters must know charter Over the past week, Our mayor, City Coun- That is the natural course of any I’ve been asked what the cil, clerk, appointees and piece of legislation. Detroit city charter really civil servants work based Will the charter be amended says and what was the in- on their understanding of over the extraordinary issue that sends right message tent of the language. the charter. Recently, we recently presented itself? No one In responding, I re- saw disagreement arise can predict because the judge’s akland County Executive L. Brooks Patterson, a viewed the official data, about the enforcement of ruling seemingly didn’t address staunch Republican, rarely parts ways with the Repub- minutes and commen- alleged charter violations the charter language. But as with O lican majority on the Oakland County Commission. tary. Then I reflected on a — one of those extraordi- any piece of legislation, most time But he did so last week when he vetoed the commission’s reso- childhood lesson and was nary situations. is spent in step two, the operation reminded that every piece Step three: interpretation of the law, where judgments, moti- lution supporting the attempt by Ambassador Bridge owner of legislation goes through Jenice Mitchell Ford of the law — When there is vations, assessments, strategy and Manuel Moroun to put a proposal on November’s ballot de- a standard process. The new char- confusion, court cases are filed. In politics play out for all to see. signed to block a new Windsor-Detroit bridge. ter language is no different. most cases, a judge reviews the law, Now that citizens approved the Good for him. Step one: lawmakers’ intent — assesses how that law applies to the charter, elected officials are tasked But even better was Patterson’s reminder in his formal Legislators draft language with facts and makes a ruling. These rul- with operating our beloved city. the hope that it will cover all situa- ings provide guidance on how to Neither citizen nor charter commis- veto message that Michigan’s largest trading partner, Canada, tions. In the charter, the intent work under the charter. Hence, the sioner can legislate an official’s has been treated poorly in this debate — including treatment was to provide clear rules of opera- law is what the judge says it is. As judgments, motivations or decisions by politicians who have received hefty political contributions tion for city officials while allow- we all know, just recently a lawsuit — that’s why it is so important that from Moroun. ing enough elasticity for them to was filed and then dismissed. we smartly elect our leadership. In addition to the huge exports to Canada from our region, make judgments in expected and Step four: possible amendment — So, the next time you are asked unexpected circumstances. One If officials are operating under a what the charter says, pull from the 80 Canadian-owned firms have operations in Oakland County. could argue that a consent agree- law that they’ve determined just childhood lesson that says “reading Instead of demonizing the Canadian government’s aims in ment is an unexpected situation. doesn’t or can’t work, the law can is fundamental,” because knowing building a new trade corridor, Patterson applauds improving Step two: operation of the law — In be amended. what the charter says is fundamen- the infrastructure of this critical trade route. this stage, elected officials fulfill The U.S. Constitution has been tally important for all Detroit citi- We wish his Republican counterparts in the Legislature — their duties based on interpreta- amended 27 times. The 1918 De- zens, stakeholders and officials. tion of the law. If there is confu- troit Charter was amended more Jenice Mitchell Ford served as and at the county level — would follow suit. sion or disagreement, one can seek than 200 times. And the 2012 char- chairwoman of the 2009-2012 char- Small biz should know court impact a judicial interpretation. ter will likely be amended as well. ter Revision Commission. Will Americans be required to buy health insurance? What will be required of companies that offer — or don’t offer — health care coverage now? Will companies back off health plan LETTERS changes they’ve already made based on changes in federal law? Those are open questions for many companies, especially small businesses, awaiting this month’s U.S. Supreme Court For progress, back higher ed decision on whether the health care mandate is constitutional. Editor: for many to attend college. Crain’s Detroit Business The legal limbo may be the chief reason a recent survey A column by Crain’s Publisher Specifically, we asked the Legis- welcomes letters to the editor. shows that businesses don’t have contingency plans based on Mary Kramer, “Colleges need more lature to make funding higher edu- All letters will be considered for possible Supreme Court outcomes. funds, but with conditions” (May cation a higher priority. The solu- publication, provided they are 14), refers to Business Leaders for tion doesn’t require more money, That survey, by consulting firm Findley Davies Inc., indi- signed and do not defame cated that many firms do not intend to roll back changes, like Michigan’s call for increased state individuals or organizations. but it does require that we smartly investment in our public universi- invest what we have. In Michigan plans that cover dependents who are adult children of employ- Letters may be edited for length ties by suggesting that additional and clarity. this fiscal year, 73 percent more ees, should the entire act be struck down. funding be linked to improving out- general fund dollars will go to pris- Write: Editor, Crain’s Detroit A survey by the Small Business Majority (see comes in areas such as graduation ons ($1.9 billion) than to public Business, 1155 Gratiot Ave., rates. We couldn’t agree more. In universities ($1.1 billion). This in- crainsdetroit.com, June 14) indicates that the more business Detroit, MI 48207-2997 owners know about the reform act, the more likely they are to fact, that is exactly what BLM pro- vestment strategy is upside down posed in testimony before both the Email: [email protected] if we want to attract business in- support the act. Senate and House appropriations vestment and good-paying jobs. Business owners in Michigan and seven other states sur- subcommittees for higher educa- been reduced over the past decade BLM proposes that additional veyed by that group supported the federal act, 52 percent to 35 tion in February and March. by roughly $1 billion, or 50 percent funding for Michigan’s public uni- percent, when details of the act were spelled out to them. According to the Lumina Foun- adjusted for inflation, which has versities be allocated based on ex- Small-business owners already juggle many priorities. But dation, Michigan faces a shortage translated into high tuition. At a ceeding, meeting or progressing of 1 million workers with a two- time when we need to grow our toward the performance of the top understanding the impact of any court decision should vault year degree or better in the next number of college-educated work- 20 percent of national peers on key to the top of the list when the court issues its ruling, expected decade or so. Meanwhile, Michi- ers, Michigan’s policy discourages before June 28. gan’s higher-education budget has enrollment by making it too costly See Letters, Page 9 KEITH CRAIN: Matty, it’s time to let them build the bridge You could say you fought the cow. That’s why Buffett It’s a done deal. So bridge under contract. You should rary jobs, and in the long run it good fight. But to a lot of people, wanted to buy it in the stop collecting all those have an advantage with your should be good for the community your persistence simply doesn’t first place. petition signatures to decades of experience in running and the Midwest. make sense. It really doesn’t mat- get the bridge issue on your bridge. You should get your It was an interesting lesson in It’s time you start to realize that ter if or when we need a the ballot. Save your- application in, pronto. democracy. My best guess is that this bridge is going to be built. You new bridge. Any stud- self hundreds of thou- It’s over. We’re going to get our this couldn’t have happened any- have successfully delayed it for ies and all the advertis- sands of dollars to col- bridge. where else in the world. It was a years, reaping additional profits ing you’ve done don’t lect them. The ballot It is time to move on to all sorts real battle that cost millions of dol- from the monopoly you have with really matter. The gov- idea is silly anyway. of new and exciting ventures for lars that might have been better your existing bridge. ernor of Michigan, the We can’t have a refer- your company. You will still have spent elsewhere. But the time has come for you to U.S. government and endum on every issue your bridge, and my guess is that But now, Matty, let it happen. fold your hand, be a gentleman and the Canadian govern- that comes along; that’s you will be able to run it in a very No lawsuits. No stalling. It’s time learn about competing and compe- ment have all decided why we elect lawmak- efficient, profitable manner for for you to accept the fact that tition. Your bridge, the one War- that not only are we going to have ers and a governor. many years to come. Competition you’re going to have a competitor ren Buffett wanted to buy several a new bridge, but that the Canadi- If you want to compete, then you is a very good thing. in a few years. decades ago, has been a real gold an government is going to front should apply, along with others, to The new bridge will cost a lot of It is not the end of the world, it’s mine — at the very least a cash much of the cost. see who will be able to run the money and create a lot of tempo- simply called competition. 20120618-NEWS--0009-NAT-CCI-CD_-- 6/15/2012 11:52 AM Page 1

June 18, 2012 CRAIN’S DETROIT BUSINESS Page 9 MARY KRAMER: There are second acts in political lives

A lot of people think Bob Ficano even stupidity. At kinds of things he did cause he was trying to solve that “Ficano is a lawyer, and he’s should resign. worst, well, we’ll see. last week: appointing a city’s financial troubles by priva- young enough and has enough con- But Bob Ficano doesn’t happen Meanwhile, the coun- well-known former tizing some services. Today, he’s tacts and experience from his to be one of them. ty continues to func- judge to the county’s in his second term as a state repre- years in office that I imagine he’d The Wayne County executive tion. Business leaders new ethics board. sentative whose district includes land on his feet in the private sec- seems unflappable. County com- don’t seem to be clam- He is not heeding the much of Flint. tor and do quite well,” Ballenger missioners voted to censure him oring for his resigna- calls to resign. If he did- Political pundit Bill Ballenger, said. “His political life, however, this month, and federal investiga- tion, although some De- n’t have to, why would whose newsletter Inside Michigan would be over, in my opinion. I tions into his administration con- mocrats and union he? What would he do Politics is must-reading for political can’t see him recovering from tinue. Formal criminal charges leaders are. Wayne next? junkies, can tick off the names of a what he’s gone through.” have been filed against two of his County isn’t so inte- He’s a lawyer. He number of politicians who have former appointees. grally tied to the re- could start practicing been recalled by voters or suffered Mary Kramer is publisher of A pervasive pay-to-play culture gion’s image as, say, law, as former Macomb some sort of public comeuppance. Crain's Detroit Business. Catch her seemed to have flourished under the city of Detroit. County prosecutor Carl Their Act 2s vary. Dennis take on business news at 6:10 a.m. Ficano’s nose, but he says he has Ficano’s term as executive ex- Marlinga has done after his own Kucinich, for example, was re- Mondays on the Paul W. Smith show done nothing wrong and, when pires Dec. 31, 2014. And barring legal troubles. called as mayor of Cleveland and on WJR AM 760 and in her blog at alerted to wrongdoing, has held any dramatic turn of events, he Woodrow Stanley was recalled then went on to be elected to the www.crainsdetroit.com/kramer. people accountable. may ride out that term doing the as mayor of Flint in 2002 in part be- U.S. House of Representatives. E-mail her at [email protected]. Ficano has been charged with no crime — except in the court of public opinion. At best, he stands accused of lax management or

LETTERS CONTINUED ■ From Page 8 measures of productivity, afford- ability, access and economic impact, including: graduation and re- HIRE A VET! tention rates, total degrees and advanced degrees awarded, insti- tutional administrative costs, net cost of attendance for in-state students receiving aid, number of Pell Grant students served, and total research-and-development expen- ditures. All of these metrics are available in a national database that would allow state policymakers to compare Michigan universities with their Helping Veterans Re - Enter peers and provide additional funding to those that perform at top lev- els. But we don’t have to wait for a performance funding model to de- the Michigan Workforce termine these facts: Ⅲ Many of Michigan’s universities already perform among the Many Southeast Michigan companies have programs in place to hire returning top 20 percent of peers on one or more of these measures. veterans, but many veterans remain unemployed. Michigan Governor Rick Ⅲ State support for universities in Michigan now ranks in the bot- Snyder has made helping veterans to re-enter the civilian workplace - tom 10 nationally versus the top 10 including as entrepreneurs — a priority. a decade ago. Ⅲ Our universities are more efficient than their national peers, having cut costs through efficien- In a special report to be published July 23, Crain’s Detroit Business cies including: asking university will examine: employees to contribute 20 percent on average toward their employee health care, like the private sector does; moving university employ- Successful employer hiring and training programs ees into defined contribution pen- sion plans (today, none of Michi- Obstacles veterans face re-entering the workplace gan’s public universities offer Programs designed to assist both employers and veterans defined benefit pensions); and keeping administrative costs low compared with institutions in peer states. Share what your company is doing to help veterans with an advertising Our public universities must message in this must-read issue of Crain’s Detroit Business. strive for further efficiencies and increased productivity, and we should condition any new funding on achieving those goals. But Issue Date: July 23 Advertise with a half based on the acknowledged impor- page or larger and we’ll tance of our universities in dri- Closing Date: July 12 ving our economy, and given the include up to two short proﬁles undeniable impact that state fund- of some of your company’s ing cuts have had, does it make recent veteran hires on a sense that in Michigan we should To learn more about advertising opportunity, be spending almost twice as much contact Marla Wise at 313.446.6032 promotional page saluting on prisons as we do on higher edu- our country’s ﬁnest! cation? or [email protected] Our answer is emphatically, “No,” and we think it’s time for Michigan to get its spending priorities in order. J. Patrick Doyle President and CEO, Domino’s Inc. Business Leaders for Michigan member DBpageAD.qxp 5/25/2012 9:12 AM Page 1 20120618-NEWS--0011-NAT-CCI-CD_-- 6/15/2012 10:09 AM Page 1

June 18, 2012 CRAIN’S DETROIT BUSINESS Page 11 Extra

growing small businesses

ichigan’s second-stage more thoughtful approach to to Entrepreneurs awards on State’s garden grows companies are a mighty boosting existing companies. Pages 13-16. Companies were se- M part of jump-starting the This special report examines lected by editors and reporters with entrepreneurs, state’s economy. new resources designed to help based on their problem-solving And there is growing ac- growing companies survive and and innovation track record. Crain’s will honor this year’s Salute to Entrepreneurs award knowledgment of the important thrive, from incentive programs Faced with the need to reinvent winners and present an wealth of resources role these businesses play, to diversification consulting. themselves or take a strategic entrepreneurship education prompting the growth of the eco- In addition, Crain’s honors risk, these companies rose to program from 7:30 a.m.-1 p.m. from green thumbs nomic gardening concept and a this year’s winners of the Salute the challenge. June 26 at the Detroit Golf Club, with discounted ticket prices for subscribers and Small Business Association of Michigan members. Manoj Bhargava, CEO of Living Essentials LLC, will speak, and a Michigan Economic Development Corp. economic gardening panel is planned. For Master gardeners details or to register, see crainsdetroit.com/events. THE HONOREES National experts help state biz grow; MEDC-backed program to expand

Up to $5 million BY AMY LANE in revenue SPECIAL TO CRAIN’S DETROIT BUSINESS Winner: Future Hosting hen Online Tech Inc. CEO Yan Technologies Ness took part in a state pi- LLC, Novi, led by W lot program for growing Patel owner Vik Patel, small and midsize businesses, he Page 13 was looking for business intelligence that would help his 10- $5.1 million- year-old company pinpoint the $15 million revenue best locations to place its next Winner: JC Beal data centers. Construction Inc., His experience with the Pure Ann Arbor, led by Michigan Business Connect eco- President Fred nomic garden- Beal Beal, Page 14 MORE HELP ing program Finalist: didn’t disap- Marketplace Homes, Plymouth, Program provides point. led by Managing Partner consulting, Page 12 Ness Michael Kalis, Page 14 A guide to learned where business services, the Midwest’s $15.1 million- Page 17 areas of high $30 million revenue demand are — Winner: such as the density of businesses Preferred within a certain number of miles Solutions, of where a data center might go Northville, led by — and also what areas have low Seipenko owner Marie competition. He has that and oth- Seipenko, er layers of information in an in- Page 14 teractive online proprietary Finalist: Zoup! Fresh Soup LEISA THOMPSON database that can be updated — Online Tech Inc. CEO Yan Ness got important data for his business through the Pure Michigan Business Connect economic Co., Southfield, led by founder information he will use as his and CEO Eric Ersher, Page 14 gardening program. Ann Arbor-based company looks $30.1 million- at expanding beyond its three The state in March issued a re- data centers, two south of Ann quest for proposals for a vendor $50 million revenue Arbor and one outside of Flint. It’s going to help us pick where to put to provide services to second- Winner: “It’s going to help us pick where “ stage companies and last week ProtectCell, Novi, to put our next data centers. I our next data centers. I knew I needed said it had awarded the contract led by founding knew I needed better data on mak- to the National Center for Economic partner and CEO ing that selection,” Ness said. better data on making that selection. Gardening in conjunction with Finnerty Bryan Finnerty, Online Tech was one of 54 ” the Lowe Foundation, which Page 16 Michigan companies to get one- Yan Ness, Online Tech Inc. houses the center. Social entrepreneur on-one development support for the next iteration: an expand- working capital in place from in- Whitehead said the new pro- from national experts in four ed program available to all vestors or grants. gram could launch in July. She Winner: Hub of central areas: strategy and man- Michigan second-stage compa- Employ six to 99 full-time- said the MEDC will fund it, but Detroit, Detroit, agement; market research and cost figures were not available led by Jason nies. While only a few companies equivalent employees, including competitive intelligence; Inter- Fiedler and seven were selected from particular re- the owner. by Crain’s deadline. Whitehead co-owners, net and social media strategy; gions of the state in the pilot, in Have maintained its principal said the services provided in the Fiedler Page 16 and geographical information the new program “the door will place of business in Michigan for new program will be in the same systems (GIS) data. be open to the entire state, as at least two years. four areas as in the pilot. Intrapreneur The companies received 35 long as they meet the criteria of Have potential revenue Whitehead said the MEDC re- Winner: Scott hours of assistance from team a second-stage growth compa- growth in the next three years ceived “overwhelming positive Dulchavsky, members in the program, which ny,” said Nicole Whitehead, pro- exceeding $1 million. responses” from companies’ exit M.D., Henry Ford was administered by the Cas- ject manager at the MEDC. Demonstrate growth in em- surveys in the pilot. Hospital, Detroit, sopolis-based Edward Lowe Foun- As in the pilot program, com- ployment or revenue in two of The program put Ness in touch Page 16 dation and underwritten with panies must: the past five years. with experts such as Wayne Koci- Dulchavsky Finalist: Bill $205,000 from the Michigan Eco- Be for-profit and privately Provide products or services na, founder, owner and CEO of Kruse, Broaching nomic Development Corp. held. beyond their current service GeoWize LLC in Boulder, Colo. The Machine Specialties, Novi, With the pilot program now Have between $750,000 and area, to regional or international Page 16 complete, the state is preparing $50 million in annual revenue, or markets. See Gardeners, Page 12 20120618-NEWS--0012-NAT-CCI-CD_-- 6/15/2012 10:11 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS June 18, 2012 Second Stage Extra Gardeners: National experts help out ■ From Page 11 firm provides GIS economic gardening services that range from site and customer prospecting and MEDC helps startups with biz consulting market intelligence to consumer As part of the strategy to grow ply for up to $50,000 through local spending data and customer profil- Michigan businesses, the Michi- economic development offices, Recognizing Leadership & Free Enterprise ing. gan Economic Development Corp. and will be required to pay a por- For example, using information has launched a program to help tion of the consulting fees. Who will lead our country following the 2012 elections extracted from a list of about 15 mil- startups get business consulting The program is part of the and what will it mean for Michigan and free enterprise? lion businesses that it has licensed services. Pure Michigan Business Connect from a national provider, GeoWize The MEDC has dedicated $3.5 program. It reflects the overall Hear from two of our nation’s most prominent political strategists: can analyze penetration of competi- million to the program in which shift in economic development to tors and compare the daytime and Michigan-based companies can focus on growing local business- Robert Gibbs has been an advisor and residential populations in a target apply for $50,000 of consulting es rather than trying to attract strategist to President Obama from the early area. It can also identify a compa- services. The Detroit office of large businesses to Michigan. days of Obama’s 2004 Senate race to his sweep ny’s potential customers and pro- Ernst & Young LLP has a team of Economic development can’t to the White House. His leadership of Obama’s vide contact names, phone num- consultants working directly on be based only on tax incentives, campaigns makes him a valuable commentator bers, credit ratings and other the program. Finney said, and needs to include on the upcoming 2012 elections. information “so they can go in and Mike Finney, MEDC president business support, infrastructure contact prospects,” Kocina said. and CEO, said companies can ap- and financial assistance. Karl Rove served as senior advisor to Businesses selling to consumers President George W. Bush from 2000–2007. can get profiles for a geographical and they can be really disadvanta- educational content on their web- Known as “the Architect” of Bush’s area that drill down to information geous,” he said. sites that helps them stand out as presidential campaigns, Rove oversaw the such as average household income For some businesses in the pilot, an industry leader. That might en- offices of strategic initiatives, political affairs and net worth, family size and such as Alfie Logo Gear Inc. in Tra- tail how-to guides, an educational and intergovernmental affairs. ages, homeownership and even be- verse City, Web assistance was an video, a blog addressing a particu- 4FQUFNCFS tQNoQNt-BOTJOH$FOUFS -BOTJOH havioral characteristics like area particularly valuable. lar topic, a PowerPoint presenta- whether people in that area like to “I knew that my website could tion, informational graphics or hunt and fish and what TV pro- be improved. I knew there were webinars, he said. Register Today! grams they watch. things that could make it better “The goal is to have your web- Just weeks before Election Day, campaign strategists Karl Kocina said GIS “has been the se- and more efficient, but I didn’t site become a trusted resource,” Rove and Robert Gibbs offer their perspectives on what the cret weapon of big business for know what those things were,” Brim said. years and years and years” but “a outcome will mean for Michigan and free enterprise. This said Bonnie Al- Brim said he also did competitor lot of entrepreneurs and small-busi- fonso, president website reviews and analyses and is a “must attend” event for everyone concerned about job ness people don’t have access and and CEO of the helped companies identify where creation and business growth in Michigan. don’t understand the capabilities.” 22-year-old their target customers interact on- Register at http://michamber.com/annualdinner Ness said the GIS information provider of logo line and the best strategy to con- Dinner: $150/person (Member), $195 (Non-Members) will help. apparel, staff nect. For example, executives Tables of 8: $1200 “Our plan is to open more data uniforms and might think they need to be on centers in the Michigan and Mid- promotional Twitter or on Facebook, Brim said, Michigan Chamber Foundation | 600 S Walnut Street, Lansing, Michigan 48933 west area, and it’s expensive and 1-800-748-0266 toll-free | www.michiganchamber.com/foundation products. “I am but “you really don’t. You have to takes a long time to do that. You not a technical be where your customers are.” want to pick those locations care- person.” Brim, Kocina and others who Alfonso fully. Put them in the wrong place She said web- helped Michigan companies are site analysis looked at what aspects part of a team of specialists trained were effective and what needed to and certified through the National be upgraded, like scripts that need- Center for Economic Gardening. The ed to be changed, as well as other center was founded by Chris Gib- improvements like making the site bons, director of business and in- more content-driven so that it ap- dustry affairs for Littleton, Colo., pears more prominently in search- who in the late 1980s pioneered As a tier one auto supplier, my business stalled in es, and making it more user-friend- economic gardening, an entrepre- ly for new and returning visitors. neur-centered strategy that focus- 2008. It was First State Bank who recognized She received a seven-page docu- es on helping existing companies the problem wasn’t my company – but my industry. ment that went through every page to grow. of her website and gave her feed- Mark Lange, executive director at By reﬁnancing the equity in my equipment, the new back on what she could do to im- the Lowe Foundation, said econom- prove it. Alfonso in turn took the ic gardening services offered loan allowed me to pay down my line of credit document to the website design firm through the Michigan pilot program she uses. She expects that changes provided an uncommon kind of and free up my working capital, which enabled will start appearing this summer. “just-in-time, high-end” expertise. She said that in addition to “Economic gardening special- me to steer my business in the right direction. learning how her Web presence ists function much like an out- could be more effective, she was sourced team of experts,” Lange - Dave able to communicate better with said. “Their goal is not to dictate First State Bank Business Customer her Web design firm. or implement solutions but to help Alfonso said that while the web- CEOs identify issues that might be site changes are near-term, market hindering growth — and point research assistance has provided a them to new tools, business con- framework for identifying and cepts and information to make bet- connecting with new customers ter decisions.” over the next few years. For example, economic garden- For example, Alfonso is interesting specialists can help entrepre- ed in expanding her clientele in neurs determine whether they At First State Bank, we realize that local businesses drive health care, so she got information have the right business model, see our economy. That’s why we’re invested today – and every on Midwest trade shows where she new opportunities in their indus- day – in helping them grow with a diverse portfolio of could meet with staff from commu- try and understand how to better products and services. nity-based hospitals who could be interact with customers and sup- leads for new orders of logo or pliers, Lange said. s3"!OR#ONVENTIONAL%QUIPMENT,OANS branded uniforms and other items. “Economic gardening specialists s2EAL%STATE,OANS David Brim, founder and CEO of are able to get to the root of growing an Orlando, Fla.-based Internet pains quickly and give entrepre- s,INESOF#REDIT marketing and design agency and neurs actionable information so s#ASH-ANAGEMENT3ERVICES member of the national team that they can move forward,” he said. assisted Michigan companies, said For Ventower Industries LLC in #ALL866-372-1275 today to learn more about the www.thefsb.com/businessloans 866-372-1275 he sees a variety of needs as he Monroe, which began manufactur- tools that help move your business forward. works with companies. ing wind turbine towers in 2011, Earning your trust today…and every day. Brim said he helped some Michi- the pilot program provided market gan companies construct “thought research that would have leadership strategies” — sharing See Next Page 20120618-NEWS--0013-NAT-CCI-CD_-- 6/15/2012 10:12 AM Page 1

June 18, 2012 CRAIN’S DETROIT BUSINESS Page 13 Second Stage Extra

From Previous Page MEDC’s Whitehead. stretched Ventower’s time and Terri Schroeder, a market re- staff to pursue. search specialist on the national SALUTE TO ENTREPRENEURS AWARDS The company targeted areas team and project manager at Shep- that could potentially diversify its herd Advisors, an Ann Arbor-based CATEGORY:UPTO$5 MILLION REVENUE business, said Scott Viciana, Ven- business strategy and market re- tower vice presi- search consulting firm, said that if hosting company for about $3,000 but surrounded myself with very, dent. That in- a company is looking to enter a in 2006 “from a guy who didn’t very smart people who really cluded looking new industry, market research Winner want it anymore.” Patel didn’t re- knew what they were doing,” he at what else the can provide reports on a potential ally put much thought into grow- said. “I also barely slept.” company might industry’s size, nature, trends, key ing the business, focusing instead The company leases space in fabricate, such players and supply chain, which FUTURE HOSTING on completing a political science secure buildings, which are filled as the potential can “help ease the transition of TECHNOLOGIES LLC degree from University of Michigan - with racks of servers, he said. Fu- for components them breaking into that new in- Dearborn. The revenue in 2006 was ture Hosting has servers in needed for nat- dustry.” Novi about $4,000 and showed minimal Chicago, Dallas, Los Angeles, ural gas hy- And market research can help Vik Patel, owner growth for the next few years, he Seattle, Washington, D.C., and draulic fractur- companies prioritize and make de- Viciana ik Patel parlayed a college said. London, and will soon establish ing; the cisions, she said. Robin Phelps, one of four leaders hobby into a business that In 2009, however, Patel said he one in Miami. possibility for the company’s back- of the national economic gardening V runs servers for clients in began to see potential for growth “I don’t want to say we’re the ground in construction, metals team and owner and managing di- more than 110 countries around in the virtualization of servers. first, but we were an early and other areas to be of service rector of Denver consulting busi- the world. Novi-based Future Host- “A lot of big companies started adopter of putting servers in mul- when wind turbines are decom- ness Innovation Economy Partners, ing Technologies LLC, which posted using virtual hosting, since its tiple locations,” he said. “People missioned and taken down; and said another area that’s important revenue of technology lets you split up a think, and in a lot of cases do, re- the opportunity and ability to pro- is assessing the “fitness landscape” $1.22 million in server into multiple servers,” he ceive faster speeds if they’re clos- vide capital or management exper- of the business: Determining 2011, allows said. “That saves on power, cool- er to their servers.” tise for small wind-energy develop- whether and when to put resources companies to ing, and the cost of the equipment Also, storing information in ments and projects. — such as sales, marketing, prod- run their appli- — companies of all sizes could different cities allows clients to Viciana said Ventower gained ucts and services — toward exploit- cations, web- save tens of thousands of dol- rest assured that if one facility information on companies in- ing markets that have proven suc- sites, games lars.” goes down, the system’s backups volved in such areas, including cessful or that have a lot of and services He began to build a service will prevent any data from being company names, length of time in potential for growth, or to focus on without need- team that worked around the lost, Patel said. business, their target areas and exploring new or related markets. ing an in-house clock to take care of all server-re- Patel said that the company current projects. “It gave us really “So much of traditional busi- IT team. And lated issues for clients. In three aims to continue global growth. Patel just a view of the landscape and ness strategy ... doesn’t have you the 26-year-old years, his staff grew to 22, with The Miami site will help Future how realistic something was and think about the balance between did it while in school. five working in Novi and the rest Hosting transition into Latin (whether it) might not be worth the the two, ... when you shift from one “As an undergrad, I just want- scattered around the country. America, he said, and he’d soon time, or worth the time,” he said. to the other and why,” Phelps said. ed a quick way to get a few hun- While managing his growing like to target Brazil’s fast-grow- In Michigan, interest in diversi- For example, “if your market is go- dred bucks a month,” Patel said. company, Patel completed a law ing market. He’s also looking to fying was a common theme among ing through a lot of change, then “But it’s definitely morphed into degree in Chicago from the John expand further into Europe and many manufacturing companies you have to be exploring, just like something much bigger.” Marshall Law School. Asia. in the pilot program, said the your customers are.” He bought the information “I oversaw the bigger things — Meghana Keshavan 20120618-NEWS--0014-NAT-CCI-CD_-- 6/15/2012 10:12 AM Page 1

Page 14 CRAIN’S DETROIT BUSINESS June 18, 2012 Second Stage Extra CATEGORY: $5.1 MILLION-$15 MILLION REVENUE

ject,” Beal said. “But in 2010, it was first downtown restoration was tate development class develop pre- choice,” Beal said. Winner the only deal out there, so we went the Harmonie Club in the north part liminary estimates for the cost of a — Meghana Keshavan for it.” of Harmonie Park. downtown renovation project. The When Fred “We were drawn to Detroit by owner saw his estimate and, in- JC BEAL CONSTRUCTION INC. Beal took over the obvious need for our services. trigued by the numbers, asked Beal Finalist Ann Arbor JC Beal in 1981, There were a lot of buildings that if there was any sense in starting a Fred Beal, president the company needed work, a lot of historic prop- project with that building. principally erties with great architecture,” “We looked at a couple of build- MARKETPLACE HOMES efore JC Beal Construction worked in Beal said. ings downtown — the Farwell, the Plymouth Inc. started work on the Washtenaw Founded in 1962, the company Leland and the Broderick Tower Michael Kalis, managing partner B high-profile restoration of County. Beal has 27 employees. Its 2010 revenue — and decided that the Broderick Detroit’s Broderick Tower, President has helped move was $6.8 million, growing to $13.3 was the most likely to succeed,” he In the wake of the housing market Fred Beal said several companies the company to million in 2011. Despite losses said. Beal crash, many metro Detroit residents already had tried and failed. the forefront of during the downturn, Beal said Beal has had a steady presence remain in underwater mortgages. historic redevelopment — particu- his company was able to stay in the development of the 34-story “We tackled what some people Marketplace Homes, a dba of Mar- larly in Detroit. The company’s afloat through constant efforts to apartment and commercial build- perceived as an impossible pro- ketplace Housing LLC, offers to lease diversify. ing on Woodward Avenue. He these homes for six years if the “We went from being a tradi- worked with Motown Construction homeowners buy from one of its tional hard-bid construction com- Partners LLC, the entity behind the preferred new-home builders. THE MILLER LAW FIRM pany to being a construction man- Broderick, doing the deal-making Marketplace acts as the old agement, design and building for the building — not just the con- home’s property manager, pays a professional corporation services company,” he said. struction. He’s maneuvering the rent to the homeowner even if “That’s kept us busy when circum- intricacies of city tax incentives to there are no tenants, and attempts stances in the marketplace could make the renovation work finan- to find tenants. have put us out of business.” cially feasible. The company reported revenue Beal came upon the Broderick The Broderick project in partic- of $2.8 million in 2010, but that sky- project — the company’s “shining ular has helped turn developers’ rocketed to $8.1 million last year. success,” as he put it — by happen- heads in Beal’s direction. In 2011, the company’s work led to stance. “When someone wants to book a the sale of 540 newly constructed He was helping a group of Univer- downtown project, we’re not the homes. sity of Michigan students in a real es- only choice, but we’re an obvious — Dustin Walsh

Our firm specializes in litigation: CATEGORY: $15.1 MILLION-$30 MILLION REVENUE • Complex Commercial and Business Now the owner of Preferred Solu- work and the needs of the busi- • Shareholder and Partnership Winner tions, a Northville-based staffing nesses, and could smoothly fit into • Automotive Supplier agency, Seipenko joined the family the environment. • Class Actions business in 1995 and took over in A growth moment came when PREFERRED SOLUTIONS 2002. In those the company was expanding and • Employment Northville days, the busi- Seipenko had to take a step back • Family Law and Probate Litigation Marie Seipenko, owner ness’ focus was — Preferred Solutions had (248) 841-2200 IT staffing. But reached the point where Seipenko 950 West University Drive, Suite 300 post Y2K, the IT no longer could make every deci- millerlawpc.com Rochester, Michigan 48307 hen other people zig, W Marie Seipenko zags. staffing market sion. began to de- “I had a mentor who is absolute- cline. ly one of the most brilliant people If Seipenko in the whole wide world, and she had followed said to me, ‘Marie, in order to conventional grow, you need to be useless,’ ” Seipenko wisdom, she’d she said. “In order to grow your have diversified, spreading her business, you can’t be the linch- client base across multiple indus- pin. That’s where I’ve seen people tries to ensure that a fall-off in one make mistakes over the years. area wouldn’t mean her company You’ve got to let go and let people would take another hit. But do their thing, or you can’t grow.” Seipenko did the opposite: she de- — Nancy Kaffer cided to focus on health care industry staffing. It was a choice that paid off. In 2010, Preferred Solutions reported Finalist $10 million in sales; in 2011, the company had revenue of $16.8 mil- ZOUP! FRESH SOUP CO. LLC lion. “Staffing is kind of a brutal envi- Southfield ronment,” Seipenko said. “People Eric Ersher, founder and CEO are not widgets. That’s what Richard Simtob, member makes staffing unique. As good as Every lawyer must pass the bar. you are, there’s always play in the o grow Zoup into a national game … it was very obvious to me chain, founder Eric Ersher Ours go on to raise it. that we couldn’t play in general T chose to franchise his soup staffing, so we had to create a and sandwich shop in 2002. niche.” He contacted Franchisesforsale Before settling on health care, .com CEO Richard Simtob to draft a Wayne Law offers students a strong and comprehensive legal Seipenko said she tried focusing franchise plan. Ersher spent five education. Our student-focused faculty members are dedicated on legal and educational staffing. years launching his plan. “I fought every market I could In 2007, he made a strategic to providing you with the skills you need to resolve complex move, and I said if health care move, allowing Simtob to pur- legal issues with creative solutions. It’s no wonder our alumni doesn’t work, I’m out of here,” she chase a minority stake in the firm. go on to make signiﬁcant contributions in their communities said. “All of a sudden, serendipity With Simtob’s expertise, the fran- AIM HIGHER happened.” chise growth ramped up. and beyond. Join our prestigious community of top attorneys, Seipenko decided to work only Today, Zoup has 42 restaurants judges and leaders. Visit law.wayne.edu or contact our with hospitals — they comprise 94 in nine states and in Ontario, with Admissions Ofﬁce at (313) 577-3937. percent of her clientele today — 16 more scheduled to open this and to be a first-tier supplier. year. Another key move was to bring Zoup reported revenue of in nurses as consultants. Nurses, $19 million in 2011, up from Learn more at law.wayne.edu or us on Facebook at facebook.com/WayneStateLawSchool she said, knew the market, under- $12 million in 2010. stood the field, the personalities at — Dustin Walsh DBpageAD.qxp 6/8/2012 11:05 AM Page 1

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Page 16 CRAIN’S DETROIT BUSINESS June 18, 2012 Second Stage Extra CATEGORY: $30.1 MILLION-$50 MILLION REVENUE CATEGORY: SOCIAL ENTREPRENEUR pair decided to launch their own doesn’t mean ProtectCell is last year, and an unknown number Winner service. changing its policies anytime Winner of bikes were repaired. Youths can “If we’re already self-insuring,” soon. instead bring their own bikes in to Finnerty said, “why not just col- “We aren’t busting the chops repair.Word has spread quickly. PROTECTCELL lect a premium as well?” of our dealers because our HUB OF DETROIT “I’m having to already turn kids Novi They decided claim rates are 3 to 5 percent Detroit around and tell them to come back Bryan Finnerty, founding partner and a couple of key higher,” Finnerty said. Owners Jacob Van Dyke, Darrin next week,” Fiedler said. CEO; Rob Emery, founding partner things had to When the company Brouhard, Jason Fiedler, Joey So far this year, kids have and COO, Chris Beyersdorff, partner happen to make launched, it operated in a small Rodriguez-Tanner, Carlisha Johnson, earned 50 bikes. An additional 24 and CFO it work: The market. And until last year, Olivia Dobbs, James McMullen and bikes have been given to children Joe Michel process had to be neither of the two founders too young to work on bikes or were hen Rob Emery and automated, and took a paycheck but instead re- raffled at Detroit-area schools to Bryan Finnerty launched it had to be easy lied on income from their other he Hub of Detroit spreads its help promote after-school literacy W ProtectCell in 2006, they for both dealer businesses to pay the bills. love of cycling by using rev- and health programs put on by City expected to go big, but not $49 mil- and consumer. “We went from being this T enue from retail bike sales to Year Detroit, Fiedler said. About lion-in-revenue big. Emery and great little company, from serv- fund bike education programs. 155 bikes have been donated to the The initial idea came from Finnerty want- Finnerty ing people in our wireless frat The collective relies on donations collective this year. Emery, who since 1993 had owned ed to streamline protection for world,” Finnerty said, “to serv- of bikes and Among the group’s programs is Michigan-based Cellular and More cellphone dealers and their cus- ing a much larger market.” parts to build a bike mechanic class, for which wireless stores. tomers. They also wanted to make Although the company near- and flip bikes for the group plans to hire four youths He thought the industry lacked sure the focus was on the customer ly doubled revenue for the cash. It then puts of high school age this summer. a sufficient insurance program for experience, emphasizing service. fourth year in a row in 2011, it the money to- The Hub relies on volunteers to phone loss or theft. Customers “We don’t want to be in a com- wasn’t until late fiscal 2011 — ward a cycling help run activities, and last year would report a lost or stolen modities business,” Finnerty said. as it signed its one-millionth education effort the number of volunteers signed in phone, and Emery’s sales staff This meant relaxing the rules a customer — that ProtectCell called Back Al- reached almost 1,200. would have to fax a claim to a little when it came to replacing became profitable. ley Bikes. The “We have a core of about 40 vol- third-party company. The commu- phones. For example, if someone ProtectCell has 70 employ- collective’s shop, unteers we see very regularly, and ees, works with 416 dealers and at 3611 Cass Ave. probably about another 50 that nication was subpar, and frequent- filed a claim on a Friday, the com- Fiedler ly there were sticking points for pany might ship a new phone that has 658,442 active subscribers. in Detroit, last come occasionally,” Fiedler said. the customer, Finnerty said. same day. Emery and Finnerty want to year generated $191,082 in revenue. If not for the programs, Fiedler To better protect dealers and The system is vulnerable to expand ProtectCell’s online “Last year, everything we did said, the collective wouldn’t have streamline customer service, the abuse, Finnerty said, but that sales and venture into different was funded through our retail opened the retail shop: The retail businesses under parent com- shop,” said Jason Fiedler, one of sales support Back Alley Bikes. pany Digital Leash LLC. the owners. Half of the collective’s members By the end of 2013, Finnerty The group ramps up this month work full-time at the retail shop said, he and Emery want no from running four programs five and take home a paycheck. The more than 50 percent of their days a week to operating seven other four are not paid and instead revenue to come from Protect- programs seven days a week. rely on their outside work as an in- Cell. New sectors for the com- The educational programs insurance adjuster, cartographer, pany could include phone apps clude Earn-a-Bike, a weekly class teacher and college student. or a finance arm for cellphone in which kids ages 8-16 build bikes Fiedler said the retail shop, which owners, he said. that they eventually get to keep. opened in 2008, was a big step and “We’re in the wild, wild Participants work with the col- that the collective is enjoying the West. There are places that lective at least six hours, although groove it found after learning to have not been explored yet.” most work more, Fiedler said. run it. Bring morale up. — Ryan Kelly Around 200 bikes were earned — Ryan Kelly About thirty stories. CATEGORY: INTRAPRENEUR

lege for Creative Studies, the Depart- made it happen. He’s relentless. Winner ment of Engineering at WSU and The “It’s harder being entrepreneur- Henry Ford. ial at a big organization than being COTT ULCHAVSKY National and international col- an entrepreneur on your own. It S D laborators include Lockheed Martin can be very trying. But I loved his Chairman of surgery at Henry Ford Corp., the University of Chicago, idea, and when your CEO supports Hospital and originator of the Carnegie Mellon University in Pitts- you, it helps creates consensus.” Innovation Institute at Henry Ford burgh and the Universidad Com- — Tom Henderson concept plutense de Madrid. Detroit Lions Chari- ties also has signed on as a partner, ’m not a brilliant business announcing in late May that the or- Finalist guy, but I am a bulldog. I ganization had donated $20,000 to “Iwill sink my teeth into a buy nine interactive health care in- bone and hold on,” says Scott formation kiosks for public schools BILL KRUSE Dulchavsky, M.D., a professor of in Detroit and Warren. The kiosks Vice president of sales, Broaching surgery, molecular biology and are made by Medical Imagineering Machine Specialties Co., Novi genetics at LLC, an Innovation Institute compa- Wayne State ny founded by Dulchavsky. ill Kruse began his career at University. Dulchavsky said the vision for the Novi-based machine shop The bone he the institute grew out of a frustra- B in 1986 as a general mechani- sank his teeth tion he and colleagues had with cal laborer after graduating from into was the the lack of a process at Henry Ford the University of Michigan. Now he’s idea of an insti- to quickly vet ideas for commer- its top salesman. tute on the New cial potential. He moved to sales engineer a Center campus “There wasn’t an efficient way year after starting as a general la- Thrills bring every group together. of the Henry Ford to do it,” he said. “There wasn’t a borer. He attended Wayne State Uni- Your employees will all feel the Health System focus. I felt we’d lost out on a num- versity at night and earned his MBA Dulchavsky exhilarating g-forces. The excitement that would col- ber of significant market opportu- in 1996. He left Broaching Machine of the water rides. And the powdered laborate with world-renowned in- nities.” shortly thereafter, spending 14 sugar of the funnel cakes. The very stitutions to spin out for-profit About four years ago, he began years in various positions at auto- companies making medical de- things that make a group outing to building a consensus of hospital ex- motive suppliers before returning vices and equipment and solving ecutives, including then-COO and to the company in 2009. Cedar Point in Sandusky, Ohio unlike unmet health care needs. now-President Bob Riney, who was Using his new sales skills, Kruse any other one. Visit cedarpoint.com/ The Innovation Institute an early supporter, and CEO Nancy helped the company land major group-sales or call 1-800-448-2428 launched last year in a building Schlichting, who initially needed contracts with John Deere & Co., Del- to get your discounted tickets for tucked behind the hospital. It now little persuasion. phi and Nexteer Automotive. His ef- your corporate group outing today. employs eight people. The 38,000- “Scott is a renaissance man of forts led the company to a 30 per- square-foot Albert Kahn building health care,” said Schlichting. cent year-over-year revenue growth was built in 1924 as an educational “The Innovation Institute was his from 2010 to 2011. He also led its ef- center for student nurses. brainchild, and it’s been very im- forts to expand sales into Mexico. THRILLS CONNECT Local partners include the Col- pressive how he took the idea and — Dustin Walsh 20120618-NEWS--0017-NAT-CCI-CD_-- 6/15/2012 10:37 AM Page 1

June 18, 2012 CRAIN’S DETROIT BUSINESS Page 17 Second Stage Extra Resources for companies on the grow One year ago Varnum committed Here’s a sampling of organizations in transformation assistance, Michigan PeerSpectives Southeast Michigan that offer opportunity identification and services, either for free or for a price, matching. Companies must be Network $1 Million in free legal services to help to help companies grow. Please minority-owned product or service entrepreneurs and growing businesses in Michigan. send suggestions to add to future providers with existing revenue in the Industries: All privately held automotive industry. Also, the directory reports to Jennette Smith, Services/requirements: Peer-to- company must be certified by the managing editor, at peer consultation on management Since then we have worked with referral organizations, Michigan Minority Supplier challenges. Company must have [email protected]. Development Council. more than nine employees. Contact: Contact: [email protected] 21 [email protected] FREE SERVICES Location: Detroit, Livonia, counseled growing businesses in Location: Detroit Waterford Township, Mt. Clemens Ann Arbor Spark 24 cities across Michigan. Industries: Life sciences, STATE SERVICES State Trade Export Promotion aerospace, automotive R&D, most The following programs are funded 34 any tech field and overseen by the state of Industries: Potential exporters Services/requirements: Michigan. They are all run from four Services/requirements: Grants It is gratifying to work with the manyentrepreneurs — Accelerator assistance, workforce metro Detroit locations. for participation in foreign trade training, tax incentive program missions, translation services, and support, real estate analysis, peer- subscription to U.S. commerce and the individuals who support them — to keep to-peer introductions, continuous Business Accelerator Fund department services. Company innovation events. Company has to must have fewer than 500 be based in Washtenaw County or Industries: Early-stage tech employees. Livingston County and have fewer Services/requirements: Business Contact: [email protected] Michigan’s economy than 25 employees. consulting, market strategizing, growing. Locations: Detroit, Livonia, relationship building with strategic Contact: [email protected] Waterford Township, Mt. Clemens Location: Ann Arbor industry partners As MiSpringboard enters its second year, the vibrancy, energy and Contact: [email protected] Location: Detroit, Livonia, SPECIALIZED CONSULTANTS E200 Emerging Leaders Training Waterford Township, Mt. Clemens Fulcrum Edge Inc. potential we see in Michigan appears unlimited. Industries: All yg Services/requirements: Six- Business-to-Business Network Industries: All besides retail month course with CEO mentoring Services/requirements: Sales groups and classes. Companies Industries: All private companies and market growth, training must have at least one employee Services/requirements: programs, business plans and and three years in business. Procurement opportunities and help. process analysis, investment Contact: [email protected] Must be a Michigan-based company. preparation Location: Detroit Contact: BusinessConnect Contact: mlundquist@ www.mispringboard.com Legal Experience In Your Corner. @michigan.org fulcrumedge.com Location: Detroit, Livonia, Location: Bloomfield Hills Finance Advisory Solutions, Waterford Township, Mt. Clemens Automation Alley Industrial Visions Co. LLC Industries: Technology; advanced automotive, manufacturing and Economic Gardening Program Industries: Any business to business materials; alternative energy; Industries: All private for-profit defense; life sciences Services/requirements: Services/requirements: Coaching and marketing advice. Services/requirements: Help Consulting. Must employ between six Target customers are business-to- companies identify financial needs and 99 full-time employees, show business manufacturers or service and solutions growth in employment or revenue in providers with stagnant or declining vs. Contact: two of the past five years, have revenue. [email protected] maintained primary location in Location: Troy Michigan for previous two years, and Contact: [email protected] must sell products or services Location: Troy outside of the Michigan market. MONDAYMMONDAY,ONDAAYY, JULYJULLYY 2 • 7:05 UEP Detroit Contact: BusinessConnect Industries: Automotive @michigan.org Michigan CFO Associates Services/requirements: Company Location: Detroit, Livonia, Industries: All, except nonprofit, TTUESDAY,UESDADAYAY, JULYJULY 3 • 7:05 assessment, diversification and Waterford Township, Mt. 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June 18, 2012 CRAIN’S DETROIT BUSINESS Page 19

CRAIN'S LIST: LARGEST MOBILE APP DEVELOPERS Ranked by number of total downloads as of May 2012

Number of applications developed per platform

Company Number of total Address downloads of Phone; website mobile apps Top local executive(s) as of Rank

May 2012Android BlackBerry iPad iPhone Other Notable applications Notable clients Compuware Corp. Peter Karmanos Jr. 17,000,000 70 60 40 100 20 NA Automotive, utilities, financial, retail, transportation, 1. 1 Campus Martius, Detroit 48226 executive chairman and health care, government and manufacturing (313) 227-7300; www.compuware.com CEO

Jacobs Media/jacAPPS Paul Jacobs 14,000,000 188 40 0 486 1 WGN Radio, OPB Extra, Native Language app "Car Talk," Entercom Communications, Greater Media, 2. 29777 Telegraph Road, No. 2650, Southfield vice president and general Ann Arbor Art Fairs 48034 manager (248) 353-9030; www.jacapps.com Detroit Labs Paul Glomski 4,300,000 9 0 9 22 0 Domino's Pizza Ordering, Chevy Game Time, General Motors, Goodby Silverstein & Partners, Domino's 3. 1555 Broadway St., Detroit 48226 co-founder and CEO Fathead Augmented Reality Pizza, Quicken Loans, Stryker Medical (313) 444-3063; www.detroitlabs.com

UnlimApps Inc. Enea Gjoka 2,300,000 0 0 0 8 0 UnlimDownloads, UMBus NA 4. 2000 Byrd St., Dearborn 48124 owner and president (313) 520-9727; unlimapps.com

Arbormoon Software Inc. Dave Koziol 2,250,000 6 2 7 25 12 FlockTag System, XanEdu iPad, WunderRadio Weather Underground, XanEdu Publishing, FlockTag, 5. 212 S. Fourth Ave., Suite 2D, Ann Arbor 48104 president iPhone/iPad, KFOG, KNBR Society of Manufacturing Engineers, DealerBug (734) 996-5654; www.arbormoon.com

YQ Labs Venky Mallempudi 1,500,000 69 12 36 74 13 Data throughput performance automation across Prosight Specialty Insurance, TMR (A.C. Nielsen Co.), 6. 834 S. Lapeer Road, Suite A, Oxford 48371 CFO multiple platforms for a telecom provider; Emergitel, Telus (248) 928-1248; www.yqlabs.com business enablement of desktop services on iPad for an insurance company Relium Corp. Eric Shapiro 1,400,000 1 1 5 7 12 Weather Underground, WunderMap, Weather Underground, Philips, Ann Arbor Hands-On 7. 3185 Appleridge Drive, Ann Arbor 48103 president BatterySense, ActionFit, Missing Sync Museum, Diagnostic Instruments, Mark/Space (734) 663-0706; www.relium.com

Blue Circle Technologies Jerry Brady 778,000 10 2 2 3 12 Unolingo, Fliq Notes, Fliq Tasks, Fliq Calendar Mark/Space, Mobatech, Hubbard Industrial Supply, Equazi 8. 7882 Winans Lake Road, Brighton 48116 principal Enterprises, Networks Group (810) 599-1616; www.bluecircletech.com

Tweddle Group Andrew Tweddle 650,000 49 39 1 51 0 Toyota Entune, Lexus Enform, RAM Toolbox, Toyota, Lexus, Chrysler, BMW 9. 24700 Maplehurst, Clinton Township 48036 president and CEO Drive Dodge, My Fiat, Chrysler vehicle info, Jeep (586) 307-3700; www.tweddle.com vehicle info

This list of mobile application developers is an approximate compilation of the most significant companies in Wayne, Oakland, Macomb, Livingston or Washtenaw counties. It is not a complete listing but the most comprehensive available. Unless otherwise noted, information was provided by the companies. Companies with headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. Actual download figures may vary. NA = not available. LIST RESEARCHED BY BRIANNA REILLY ■ An expanded version of this list can be purchased at crainsdetroit.com/lists.

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Page 20 CRAIN’S DETROIT BUSINESS June 18, 2012 Job Front

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Page 22 CRAIN’S DETROIT BUSINESS June 18, 2012 CORPORATE FLEET SERVICES Living room: DIA rethinks spaces ■ From Page 1 To collaborate on the effort, it Musicians has engaged four other groups: perform in NO FEES Midtown Detroit Inc., Cultural Al- Kresge Court, a liance of Southeastern Michigan, De- skylit inner courtyard at the troit Creative Corridor Center and Detroit Institute corporate-À eet.com NBS Commercial Interiors, an autho- of Arts. A grant rized distributor for Grand will help the DIA Rapids-based Steelcase Inc. and other The DIA played a role in econom- Midtown Fleet leasing service with, you ic development in Midtown early planners with a guessed it, no fees. on with its contribution of four Vic- project to torian-era mansions and two car- reshape the riage houses that now comprise the space as a • Experts since 1963 in managing and À nancing community Inn on Ferry Street, Erickson said. automobile, truck, and specialty equipment Á eets hangout. “We’re interested in maintaining COURTESY OF DETROIT INSTITUTE OF ARTS throughout the United States and Canada, with and expanding that position,” she international services available through our global said, and the cultural living room is “The goal is to enhance and tions and the Flint Public Art Project about contributing to what’s hap- transform the Kresge Court and were each awarded $250,000 grants. business partners. pening in Detroit in a new way. front lawn from (places) people Those followed earlier 2012 Art- “Community development and visit occasionally to places they Place grants of $350,000 to the Mu- • CertiÀed by GM, Ford, Chrysler and the import economic development go hand in frequent much as they do different seum of Contemporary Art Detroit to restaurants, coffee houses and fund a major renovation and new manufacturers hand. … You create the hub, (and) it brings people in (who) support parks,” he said. green space, $80,000 to Wayne State the businesses and cultural orga- The Cultural Alliance will help University’s TechTown incubator and • All available Áeet discounts, rebates, and incentives nizations in the neighborhood.” engage other cultural groups to $900,000 to Midtown Detroit for the provided by the manufacturers are incorporated into Over the next several months, provide programming, and the De- purchase of a vacant church build- the DIA plans to work with Mid- troit Creative Corridor Center will ing in the Sugar Hill Arts District our nationally competitive rates town Detroit on public forums to provide design, marketing and pro- and plans for a black box the- gauge what nearby residents and motion assistance, as well as speak- ater/music center and small out- • And the “no fees” tagline? We mean it. You get expert employees would like to see in the ers and/or performers, Frost said. door theater venue nearby. Áeet management for one rate with no hidden fees. museum’s cultural living room. An outdoor gathering space in “The comeback of Detroit is of It plans to issue a request for pro- Midtown is badly needed, “as we intense interest to our funders, None. posals for an architect to help deter- have some small-scale green spaces just as it is for everyone who cares mine the best configurations for the and parks, but no visible space about the success of cities,” said spaces. NBS is donating 100 hours along Woodward that is developed ArtPlace director Carol Coletta in 313-868-5000 :: corporate-Á eet.com of space planning and design, and expressly for inviting the public to an emailed statement. providing discounts on furnishings. socialize, interact and connect,” “What is learned during De- Bradford Frost, a fellow in said Midtown Detroit President Su- troit’s transformation will be valu- Wayne State University’s Detroit Re- san Mosey in an email. able for communities every- vitalization Fellows Program, is The DIA is one of several Michi- where.” helping to shape the effort as spe- gan cultural groups awarded Art- Sherri Welch: (313) 446-1694, cial assistant for community and Place grants this year. The Detroit [email protected]. Twitter: economic development at the DIA. artists group Power House Produc- @sherriwelch Why Should They Trust YOU? Shoes: One giant step for Villa chain ■ From Page 3 many in the markets Villa is enter- stores in Detroit and also locations those neighborhoods,” he said. ing. in Highland Park, Southfield, Pon- Villa, which already has stores The company also operates a tiac, Flint, Saginaw, Lansing, Ann in “tough” neighborhoods in high-end athletic apparel store in Arbor, Kalamazoo, Benton Har- Philadelphia and Cleveland, has a BBB Accredited Businesses Birmingham and four in Florida bor, Grand Rapids and Muskegon. business model that emphasizes under the Soles Inc. banner, one of The openings will be staggered, hiring from the neighborhoods and are committed to honest, ethical which opened last week. with eight launching by the end of promoting from within, Lutz said. Mr. Alan’s has seen demand for the year, Griffin said. Each of the stores has two Mac and fair business practices. fashionable athletic shoes in- The company has annual sales computers with free Wi-Fi for the crease across its locations, said approaching $100 million from patrons who hang out there. The CEO Roger Karnow. stores in Pennsylvania, western new Michigan stores will range “We feel it’s a feel-good buy, but New York, Delaware and New Jer- from 5,000-7,000 square feet and in- we also think there is a collector,” sey. It’s also moving into the clude a “sneaker lounge” with Show Your Customers What he said. Chicago market. Sales have been couches. For teenagers, the pair of shoes up double digits for the past couple “We want to be … the Cheers or YOU Stand For they have on equates to status, of years, Lutz said. Starbucks of the neighborhood,” Lutz said. On the business sales side, Mr. Lutz said. “Hopefully, we can be that “They may not be able to drive Alan’s Karnow said vendors limit safe haven, a place kids can come around in an Audi, but if they have how many pairs of the shoes go to and hang out and find out what the a $150 pair of sneakers on … at the retailers to keep consumer fren- new sneaker releases are — we call time, they escape from everything.” zies going, he said. it a New Age barber shop.” Villa also sees opportunity in lo- “But based on the population, Like the company’s other stores, cations that other retailers may not. economics and environment, po- the Michigan outlets will include “Most retailers look for high-in- tential (for sales) is still limited” in posters inside the stores talking come, high-property-value mar- Michigan. about pride in the community and ® kets, but those aren’t Villa’s mar- Villa said it has a nontraditional believing in yourself, as well as kets,” Griffin said, in spite of the way of immersing itself in local managers who volunteer in the fact that the retailer’s shoes can markets to attract employees and community as a condition of their run $150 or more. customers. For example, many peo- hire. ® Villa locates in large urban strip ple operating businesses at Grand “At the end of the day, I firmly malls that have stores like Rainbow River and Greenfield have bullet- believe if you treat people with re- Start With Trust or Dots already attracting foot traf- proof glass and signs that say only spect, they are going to have your fic, he said. Customers in those two kids are allowed in the store at back and they’re going to support markets spend a larger percentage a time, said Lutz, who was in Michi- you,” Lutz said. Join the Better Business Bureau of their income on fashion than the gan last week touring properties. “How we win is through our real Serving Eastern Michigan and the Upper Peninsula average customer at upscale loca- “We found that if you’re hiring estate strategy, how we respect our tions like Somerset Collection in from the neighborhood and …wel- customer and how we do business For more information: Troy, Lakeside Mall in Sterling coming youth to come and hang in our neighborhoods.” Heights or The Mall at Partridge out … you’re just creating a differ- Sherri Welch: (313) 446-1694, bbb.org or 248-223-9400 Creek in Clinton Township. ent dynamic with the consumer [email protected]. Twitter: It plans to opens seven to eight than (what is) typically done in @sherriwelch 20120618-NEWS--0023-NAT-CCI-CD_-- 6/15/2012 3:39 PM Page 1

June 18, 2012 CRAIN’S DETROIT BUSINESS Page 23 Apps: Med student and tech entrepreneur cranks ’em out ■ From Page 3 organize various email files on smartphones and tablets. Those have been downloaded 700,000 times. UM, MSU to get first taste of social media fashion site Gjoka also is one of four principals in another Ann Arbor compa- BY TOM HENDERSON with one drug in has a Web-based portfolio company, VZL LLC, which plans to launch CRAIN’S DETROIT BUSINESS pre-clinical tri- ny and needs to keep his small a website on June 30 called als; and eRent fund diversified. HangTrend.com. The site will be a The principals of Ann Arbor- LLC, a property Avidar said VZL has had invest- combination of social media and based VZL LLC hope to launch management ment offers but wants to get the site retailing aimed at young women, HangTrend.com, a combination of company. up and generating revenue to in- and the plan is to raise at least $5 social media and retailing aimed Late last year, crease its value before it closes on million in venture capital after the at young women, on June 30, VZL came to- what it hopes will be a $5 million or site is launched. (See story at right.) rolling it out the way Facebook was gether quickly, $6 million first round of venture rolled out: to college students, one growing out of capital by the end of summer. or two campuses at a time. Gui Avidar Ahsan discussions be- “The social retail space has ‘A phenomenon’ VZL plans to launch to students tween Avidar room for new players,” Miller ka is Albanian and came to the U.S. Medical school has long been a at the University of Michigan and and a fellow trader at Citigroup, said. “It’s a space that is moving when he was 10; Gui is Romanian goal for Gjoka, who came to Dear- Michigan State University, then Kathie Chang, about e-commerce. fast. Can they get their model to and came here when he was 6; Avi- born from Albania when he was 10 move on to other universities and Chang, still with Citigroup, is market without spending a lot of dar is of Israeli descent and was and majored in cellular and molec- then to the general public. HangTrend’s director of fashion and time and money? If so, there are a born here; and Zubair, who is of In- ular biology at the University of Members, who will be able to join advisor on Web design and content. lot of opportunities. There will be dian descent, also was born here. Michigan. The rest of it has been for free, can fill virtual closets on the Gui said he was working 80-90 lots of winners and losers.” At UM, Avidar, Ahsan and Gui more happenstance than planning. site, a way of telling friends and fam- hours a week, doing a lot of travel- Some of those opportunities studied under Marc Weiser, an ad- After Gjoka got his first iPhone ilies what they like to wear, the ing for work and wanting to do could be an eventual sale to a large junct professor at UM’s Center for in 2009, he thought it would be use- brands they prefer, their favorite col- something more entrepreneurial Internet company such as Ama- Entrepreneurship, a partnership ful to be able to speed up YouTube ors and, if they choose, their sizes. when Avidar called in December zon.com, Facebook Inc. or Google, between the Ross School of Busi- and other videos, but there wasn’t Retailers will be able to target with the idea for HangTrend. Af- which have been willing to pay a ness and the College of Engineering an app available to do that. So he HangTrend members with pitches ter phone calls and text messages, premium to buy social media com- that teaches entrepreneurial skills taught himself computer program- for clothes that match their tastes. Avidar, Ahsan and Gui decided on panies that have revenue. to students. Weiser is managing di- ming, formed a company and de- HangTrend will collect a small fee Dec. 31 to take the plunge. “People in that space are looking rector of RPM Ventures LLC, an Ann veloped UnlimDownloads. for each retailer pitch that mem- The next week, the paperwork for things to add on,” Miller said. Arbor-based venture capital firm, The app is free at the iTunes bers open and will get a commis- for VZL was filed. Soon after, Ah- HangTrend’s most prominent Gui graduated in 2010 and be- store, but small ads that run in the sion from subsequent purchases by san recruited Gjoka to join as a competitor is Pinterest, which came director of business devel- corner of a phone or tablet while members at the retailers’ websites. full partner. The name VZL likely bills itself an online pinboard for opment at Canton Township- the app is being used — ads gener- HangTrend will also develop an will soon be changed, likely to people’s photos about hobbies and based Victory Automotive Group, ated by a Palo Alto, Calif., compa- app that lets members get product something like HangTrend Inc., to interests. According to New York- which owns 22 new-car dealer- ny called Mobclix Inc. — are paying news delivered to their devices. reflect the brand. based Experian Hitwise, a company ships around the country. his way through med school. The company says it has signed Bill Miller, managing partner that analyzes Web metrics, Pinter- After graduating with a degree Gjoka is working on three other up such retailers as Macy’s, Chinese of a small venture capital firm in est in December became one of the in business in 2011, Avidar, a busi- apps, two of them games and one an Laundry shoes and J. Crew. Colorado Springs, PV Ventures LLC, 10 largest social network services, ness major, took a job as a trader at app that lets you respond to some- The principals are friends who has advised VZL and plans to with 11 million visits a week. In Citgroup in New York. He had in- one in a chat group without having met at UM. Enea Gjoka, 22, now a make introductions to his net- January, it drove more referral terned as a trader in New York to close out of other windows. medical student at Wayne State work once HangTrend.com is traffic to retailers’ websites than with the Royal Bank of Scotland. “Enea is an extraordinarily University, is chief technology offi- launched. LinkedIn and YouTube. Gjoka, a 2011 grad, enrolled in bright guy. He’s been quite a phe- cer and lead developer. The other Miller heard of VZL through Other fashion-based social net- medical school, and Ahsan, who nomenon,” said Matt Jackson, assis- principals, from whom the compa- his son, Andrew, a former class- work sites include Polyvore.com, graduated in 2011 with degrees in tant dean of academic and student ny takes its initials, are Val Gui, mate of Chang’s at Boston College. Fasholista.com, Chiq.com and business and biomedical engineer- programs and associate professor of 24, director of business develop- Miller said his $3.5 million Fashism.com. ing, helped launch two Ann Arbor- immunology and microbiology at ment; Leore Avidar, 23, CEO; and fund, which does early-stage in- Tom Henderson: (313) 446-0337, based startups: SanoBio Therapeutics the WSU School of Medicine. Zubair Ahsan, 23, COO. vesting in tech companies, won’t [email protected]. Twitter: LLC, a pharmaceutical company That includes revamping the way VZL is a small melting pot. Gjo- invest in VZL because he already @tomhenderson2 WSU’s med school delivers class- room lectures to students online. Jackson. Gjoka showed his code to the firm as chief technology officer Which begs the questions: If his to me,” said Gjoka, who wants to be The school makes all lectures avail- the school’s IT people and soon, and lead developer. “I don’t need own company has generated an oncologist. “I was a volunteer at able online, but until last year, Mac “regardless of platform, you were much sleep. Two hours a night is $100,000 of revenue in two years, and a hospice, and I learned there how users frequently had trouble with good to go. The videos load and enough,” he said, “although during he’s now a principal at another com- much I love helping people. Busi- downloads, and the videos were stream just beautifully.” exams I don’t sleep at all.” pany that hopes to have at least $5 ness is fun. With school out, I pret- only available at normal speed, not Gjoka working full time might million in funding by the end of ty much live here. But being a doc- helpful for student reviews. be a little too much to ask for once summer, why medical school? tor is what’s important.” “Enea sat in my office and said, More than business school starts, again. “I’ve heard the “I love programming and I love Tom Henderson: (313) 446-0337, ‘I think I can figure this out.’ And a After VZL was launched, in Janu- second year of medical school is the business stuff, but medical [email protected]. Twitter: week later, he had it done,” said ary, Gjoka has worked full time for harder. But I’ll still be here a lot.” school is what is really important @tomhenderson2 RobotTown: Organizers focus on industry contests, events ■ From Page 3 while we are working on getting this request in about a year... it paign for RobotTown, which could sense to be also helping that small trols on military bases. The Army larger sums of money together,” seemed the project had died. But launch later this year through business or group of students or expects to test robotic vehicles at Clothier said. “We’re working on there’s now a renewed interest,” Kickstarter.com. Salamango said friends in a garage, who have de- Fort Bragg in North Carolina and programs that help the robotics said Ron Moffett, managing direc- the organization has been ap- veloped an innovation with com- Fort Leonard Wood in Missouri, market, but the vision continues to tor of the MEDC’s Michigan De- proached by officials in Ann Arbor mercial applications,” he said. and RobotTown could apply the be a living laboratory campus.” fense Center. “So we’re just asking and Farmington about prospective Salamango said RobotTown also same systems or technology for The nonprofit RobotTown has to see a new business plan — one locations for RobotTown. expects to coordinate with the U.S. civilian uses at its campus. seen a few challenges. The non- that reflects the changes we’ve Salamango said he still would Army’s Autonomous Robotics for James Overholt, senior robotics profit New Economy Initiative for seen in the robotics market for the like to house the test center in De- Installation and Base Operations, research scientist at the Army Southeast Michigan rejected its ap- defense industry since then.” troit, but talks with the city have a program of the Joint Center for Tank-Automotive Research, Develop- plication for $100,000 in planning RobotTown also recently backed gone slowly in recent months. He Robotics at the Tacom Life Cycle ment and Engineering Center in grant funding, and the multi- off a prospect of using the former hopes to find a location that is ac- Management Command in Warren, Warren, originally proposed the agency federal Strong Cities, Strong Michigan State Fairgrounds in De- cessible to major robotics and on possible use of its robotic Robot Town concept and sits on a Communities Initiative to invest in troit, after it became clear that technology companies in the re- ground vehicle technology. board of advisers to the nonprofit. local economic growth and job cre- would involve more than $1 mil- gion that are collaborating on Ro- The Joint Center put out a solici- The organization still hopes to ation hasn’t responded to Robot- lion in yearly operating costs. botTown, and to some of the more tation request to industry last have a preliminary version of Ro- Town’s $250,000 request for pilot But networking has helped. cash-strapped local school dis- year, to follow up on previous gov- bot Town operating by October program funds. The MEDC fund Salamango said Detroit advertis- tricts who could benefit from it as ernment-funded research and help 2014. request also dates back to last ing firm Gyro Creative Group has an educational resource. develop and field a fleet of au- Chad Halcom: (313) 446-6796, year. agreed to work pro bono to help co- Advances don’t often come from tonomous vehicles that can assist [email protected]. Twitter: “We hadn’t heard anything on ordinate a crowdfunding cam- large companies, “so it makes in transportation and security pa- @chadhalcom 20120618-NEWS--0024-NAT-CCI-CD_-- 6/15/2012 3:40 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS June 18, 2012 UPCOMING Comeback: Small firms have impact ■ From Page 1 PARTNER EVENTS is for certain: Michigan wins ei- that small manufacturers created that highlights through its annual ther way. more jobs than large ones from the program the achievements of sec- “We’ve reinvented ourselves a third quarter of 2009 to the third ond-stage companies that make an Crain’s partners with a variety of organizations few times over the past 28 years,” quarter of 2011. Using the federal impact in their markets. To be con- on events and special subscription offers said David Miller, president and definition, Michigan manufactur- sidered for a 50 Companies to owner of Duo-Gard, which designs ers that were classified as small Watch award, businesses must em- for their members. Please visit their websites below. and manufactures components for businesses showed an increase of ploy between six and 99 full-time outdoor structures and buildings about 10,500 more jobs than large equivalent employees and have be- MichBio BioMixer -*" -", Ê 9ÊMichigan that emphasize sustainability. Michigan manufacturers. tween $750,000 and $50 million in VViiÀ>ÌÀÊÕ`£°Ê iÌÜÀÊÜÌ ÊÞÕÀÊ«iiÀÃ]Ê>iÊiÜ “We use our small size to our ad- But one could also argue that annual revenues. connections and talk bio biz in a casual setting. Light vantage; we stay light on our feet.” large manufacturers created more Mark Lange, executive director hors d’oeuvres and refreshments will be served. Evolving from its roots as an in- jobs in relation to their size than of the foundation, said his organi- June 25ÊUÊxÊqÊÇÊ«°°ÊUÊ V }>ÊVViiÀ>ÌÀÊÕ`£] dustrial glazier, Duo-Gard has small manufacturers. The statistics zation didn’t make any special ef- £{äÊ ÀiÊ iÌiÀ]Ê-ÕÌiÊÎää]ÊÀ>`Ê,>«`Ã carved out a niche that may mean indicate that manufacturers with fort to boost the number of manu- ÃÌ\ÊÀii°Ê/Ê,-6*ÊÀÊÌÊ ÃÌÊÞÕÀÊÜÊ ÝiÀ]Ê revenue this year of more than $19 more than 500 employees employed facturers that submitted email Heather Kusiak, manager, operations and mem- million, up from about $14.5 mil- about 17.8 percent more people at applications for the award, and bership, at [email protected]. lion last year, Miller said. Employ- the end of the two-year period, while award judges didn’t give prefer- ment has risen to 66 full-time peo- small manufacturers employed only ence to manufacturers. MSED Monthly Meeting - Summer Luncheon ple, compared with 45 employees about 10.4 percent more. “I know there’s an interest and Annual Automotive Roundtable “Automotive Trends – two years ago. Weaver cautioned that the analy- enthusiasm for manufacturing that Looking Ahead to 2025.”Ê*>iÃÌÃÊ`ÃVÕÃÃÊÌ iÀÊÛiÜÃ The federal definition of a small sis isn’t perfect because a company I hear all across the state,” Lange of the changes coming to the automotive industry and business is fewer than 500 employ- could have recorded enough job said. “And I think there’s a sense of how customer/supplier relationships will evolve to meet ees; the significance of even small- growth by 2011 to move into a high- revival all around the country for Ì iÊV >i}iÃ°Ê*>iÃÌÃ\ÊBob Lee, vice president of er but growing companies cannot er size class, which would affect the manufacturing. That bodes well for engine and electrified propulsion engineering, Chrysler be overstated, entrepreneurs and results. Also, some job gains in Michigan: Michigan might even be ÀÕ«Ê ÆÊJeff Klei]Ê«ÀiÃìÌÊ /]Ê ÌiÌ> experts say. manufacturing between 2009 and a harbinger for that.” Automotive. Moderator: Chris P. Theodore, president, Miller said Michigan is a natur- 2011 reflected recalls of workers laid Regardless of sector, one hall- Theodore & Associates, LLC al place for small manufacturing, off during the recession. mark of a 50 Companies to Watch thanks in part to a pool of skilled Despite the sprawling factory im- winner is the ability to reinvent it- June 27ÊUÊ££\ÎäÊ>°°ÊqÊÓÊ«°° workers and good infrastructure age of manufacturing, a new study self. Lange said the best predictor >>}iiÌÊ `ÕV>ÌÊ iÌiÀ]Ê/ÀÞ that has everything from easy ac- by the Brookings Institution showed of a company’s continued growth - ÊiLiÀÃ\Êf{x]ÊiLiÀÃ\ÊfÈä cess to spare parts to contractors that the average U.S. metropolitan is its knack for constant maneu- To register, go to www.msedetroit.org or call meeting who can repair down machines. manufacturer employed about 57 vering in the marketplace to find VÀ`>ÌÀÃÊ>ÌÊÓ{n®ÊÈ{ÎÈxä° people. And manufacturing is not its next major product or service. How to Become a Government Contractor Moving on up evenly spread out throughout the Amen to that, said Miller with *ÀiÃiÌi`ÊLÞÊÌ iÊ*/ ÊvÊ-V VÀ>vÌÊ i}iÊq country, with the Midwest leading Duo-Gard. He credits the success of Find out what it takes to sell your goods and services Many experts and statisticians the nation in manufacturing jobs his company to the transitions that agree that manufacturing in compared with the three other re- it has made since it was founded by ÌÊÌ iÊiìÀ>ÊÛiÀiÌÊ>`ÊÌ iÊ-Ì>ÌiÊvÊ V }>°Ê Michigan is on the upswing, and gions defined in the study: the his father, Al Miller, as Michigan Ê>``Ì]Êi>ÀÊ>LÕÌÊÌ iÊvÀiiÊÃiÀÛViÃÊ>`ÊVÌÕ- small companies are playing a sig- Northeast, South and West. Over Energy Control, which retrofit fac- ÕÃÊ}ÛiÀiÌÊVÌÀ>VÌ}ÊÃÕ««ÀÌÊÌ >ÌÊÌ iÊ*/ Ê nificant part of the resurgence. the past two years the Midwest also tory sashes in the 1980s for energy *ÀVÕÀiiÌÊ/iV V>ÊÃÃÃÌ>ViÊ iÌiÀ®ÊvÊ-V - State statistics show that more led in job growth of manufacturing conservation using a polycarbonate craft College can provide to your company. than 98 percent of the manufactur- in the widest range of processes, the overglaze of glass windows. July 12 UÊÊ>°°ÊqÊ ÊUÊ-V VÀ>vÌÊ i}i ers in Michigan have fewer than report said. Using the retrofit business as a f{xÊ«iÀÊ«iÀÃ°Ê,i}ÃÌÀ>ÌÊÀiµÕÀi`\ÊÇÎ{®Ê{ÈÓ{{În 500 employees, and many are The Washington, D.C.-based foundation, the company hit its much smaller than that. nonprofit research organization next big product in 1990 when it State of the Township: Harrison Township “About 80 percent of our mem- ranked the Holland-Grand Haven rolled out a shelter using clear Harrison Township Supervisor Ken Verkest will deliver bership is companies of less than metro area as the fifth highest plastic panels that was made his State of the Township address as part of the 100 employees,” said Chuck Had- manufacturing-specialized metro- specifically to protect smokers chamber’s State of the Community series, attended den, president and CEO of the politan area among 366 metro ar- who had to leave the workplace to by businesses, civic and government leaders and citi- Michigan Manufacturers Association, eas in the country, with manufac- enjoy their habit. zens who invest in their community to make it a better a Lansing-based trade group devot- turing accounting for more than 26 “It was a hot product, and we place to live, work and play. ed to promoting a business climate percent of the area’s jobs. were the first ones in the nation to July 13ÊUÊnÊ>°°ÊUÊÜ>iÊvÊ ÕL]ÊÓ{ÇÇäÊ-ÕÌ Ê favorable to industry. Many of the Among the top 100 of the coun- offer a product specifically as a River Rd., Harrison Township manufacturers are second- and try’s largest metro areas, the Grand smoking shelter,” Miller said. iLiÀÃÊ>`ÊÀiÃìÌÃ\ÊfÓx]ÊiLiÀÃ\ÊfÎx]Ê third-generation family owned Rapids-Wyoming area was third When Miller became president LÀi>v>ÃÌÊVÕì`°Ê,i}ÃÌiÀÊ>ÌÊxnÈ{ÎÇÈääÊÀÊ>ÌÊ and seem to be increasingly head- with 16.7 percent of all jobs, and the in 1991, he used the smoking shel- www.macombcountychamber.com ed by women, Hadden said. Detroit-Warren-Livonia area was ter product as a launch pad for the “My members that are doing 17th with 10.7 percent of all jobs. next iteration of Duo-Gard — prod- The Michigan Small Business & Technology Develop- (well) now didn’t let their talent get “Michigan is probably the best ucts such as skylights and translu- ment CenterÊ - / ®Ê«ÀiÃiÌÃÊ5 Keys to Achiev- away from them,” he said. “They got state in the country for manufac- cent walls that helped bring day- ing Fiscal Fitness. This training program is designed really creative during the recession turing,” said Erik Gordon, profes- light into buildings. to help business owners strengthen financial literacy — working three days a week or tak- sor at the Ross School of Business “It took us about seven years to and improve the ability to access capital needed to ing longer Christmas vacations — to and School of Law at the University get the business off the ground as a grow. -*" -", Ê 9ÊvÌ Ê/ À`Ê >°Ê/«VÃÊVÕì\Ê keep their talent. So as it is starting of Michigan. real player in that market,” he identifying balance sheet and income statement prob- to ramp up again, they are pre- “... We are the best at high level, said. “You have to have resiliency lems, ways to increase your company’s cash flow, using pared.” precision manufacturing — manu- and you have to have a product breakeven analysis to improve decision-making, planning From April 2011 to April this facturing that requires real skill,” with a revenue stream that will al- the working capital to support your growth and how to year, total payroll jobs in Michi- he said. low you to make the next transi- keep your banker on your side. gan were up by about 59,000, or 1.5 It’s not just cars. Other bright tion.” nÊ>°°ÊqÊ ÊUÊVÌiÌ>ÊLÀi>v>ÃÌÊVÕì` percent, said Bruce Weaver, eco- spots include medical devices, ma- Now Duo-Gard uses a range of July 11ÊUÊ6iVÌÞ]Ê-ÌiÀ}Êi} ÌÃ nomic analyst for the Michigan chine tools and specialty ma- sustainable technologies in cus- July 18 U ">>`Ê ÕÌÞÊ ÕÃiÃÃÊ iÌiÀ]Ê7>ÌiÀvÀ` Department of Technology, Man- chines, office furniture, advanced tom-designed systems for interior Aug. 14 UÊ-V VÀ>vÌÊ i}i]ÊÛ> agement & Budget, Bureau of La- manufacturing processes, and in- day lighting and outdoor struc- ÃÌ\fÓx]ÊÃV >ÀÃ «ÃÊ>Û>>LiÊvÀÊvÌ Ê/ À`ÊViÌÃ° bor Market Information and formation systems for logistics. tures. “If you’re in Miami, you get Register at misbtdc.orgÊÀÊV>ÊÇÎ{®Ê{nÇäÎxxÊvÀÊ Strategic Initiatives. Three sectors a different mix of technologies more information. added jobs — manufacturing, pro- than if you are in Minneapolis,” he fessional business services and ed- Small is beautiful said. Save the Date! GDAHC Annual Business Meeting ucation and health care — but Smaller manufacturers appear And typical of its history, Duo- And Salute To Healthcare in Southeastern Michi- manufacturing led the way with to be taking a higher profile in the Gard keeps its “feelers in the mar- gan Awards. Join the who’s who in healthcare for 26,000 jobs. state, if one popular award pro- ketplace to see where our next op- this Annual Awards Celebration gram can be used as an indicator. portunities lie,” Miller said. Sept. 20ÊUÊ{\ÎäÊqÊnÊ«°°ÊUÊ iÌÀÌÊÃÌÌÕÌiÊvÊÀÌÃ Big or small? Only 8 percent of companies se- “When something is a great idea or xÓääÊ7`Ü>À`ÊÛi° lected as the 50 Companies to emerging market, eventually peo- {\ÎäÊqÊx\ÎäÊ«°°ÊÊ ÊÕ>Ê iiÌ} Drilling down a bit into the bu- Watch by the Edward Lowe Founda- ple are going to step in and it’s go- x\ÎäÊqÊÈ\ÎäÊ«°°ÊÊ ÌiÀÌ>iÌÊ>`Ê-ÌÀ}Ê iÀ reau’s statistics explains why it is tion in Cassopolis were designated ing to become a commodity. difficult to pinpoint the degree of as manufacturers four years ago. “If that happens, we step out and È\ÎäÊqÊÇ\£xÊ«°°ÊÊÜ>À`ÃÊ*À}À> impact smaller manufacturers This year, nearly half of all the we move on to the next opportuni- Ç\£xÊ«°°ÊÊ ÌiÀÌ>iÌÊ>`Ê iÃÃiÀÌÃÊ have on the increase: It depends on winners of the 50 Companies to ty.” ÊiLiÀÃ\Êf£ää]ÊiLiÀÃ\Êf£Îx what size pin you use. Watch program were small manu- Matt Gryczan: (616) 916-8158, Visit www.gdahc.org for information and to register. Depending on how you parse the facturers. [email protected]. Twitter: statistics, a person could argue The foundation is a nonprofit @mattgryczan 20120618-NEWS--0025-NAT-CCI-CD_-- 6/15/2012 5:26 PM Page 1

June 18, 2012 CRAIN’S DETROIT BUSINESS Page 25 Bridge: Work expected for ‘hundreds of firms’ www.crainsdetroit.com ■ EDITOR-IN-CHIEF Keith E. Crain From Page 1 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] New International Trade Crossing will cializes in toll road issues, and lat- EXECUTIVE EDITOR Cindy Goodaker, (313) 446- create more than 22,000 direct and BRIDGE WORK er was with Washington, D.C.- 0460 or [email protected] indirect construction jobs over based private equity firm Carlyle MANAGING EDITOR Jennette Smith, (313) 446- A study released Thursday by the Ann MDOT based its job estimates on a 1622 or [email protected] four years and increase the state Group. DEPUTY MANAGING EDITOR Daniel Duggan, (313) Arbor-based Center for Automotive U.S. Federal Highway gross product by $1.5 billion dur- Among those bidders were global 446-0414 or [email protected] Research predicts the NITC project Administration formula that says for SENIOR EDITOR Bob Allen, (313) 446-0344 or ing that time. (See box at right.) will create 22,234 direct and indirect every $1 million spent on giants Bouygues Travaux Publics SA in [email protected] “There could be hundreds of Paris, which built the English Chan- WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- construction jobs: construction — in year 2000 8158 or [email protected] firms involved,” Fisher said, not- Ⅲ 2013: 6,111 jobs (3,571 direct, dollars — seven full-time equivalent nel tunnel, and Spain’s Cintra In- SENIOR EDITOR Gary Piatek, (313) 446-0357 or ing that the 2,540 indirect) jobs and 18 indirect jobs are fraestructuras SAU. (See list at left.) [email protected] created. Since many construction SENIOR DESIGNER Jeff Johnston, (313) 446-1608 bridge will be Ⅲ or [email protected] 2014: 5,888 jobs (3,452 direct, jobs are not year-round, the formula one of the top 2,436 indirect) DATA EDITOR Brianna Reilly, (313) 446-0418, five construc- considers a blend of workers from Michigan players [email protected] Ⅲ 2015: 5,288 jobs (3,122 direct, different trades over the course of a WEB PRODUCER Norman Witte III, (313) 446- tion projects in Wixom-based Walter Toebe Con- 2,166 indirect) year to produce one full-time job. 6059, [email protected] Michigan histo- struction Co. is the only Michigan EDITORIAL SUPPORT Robertta Reiff (313) 446- Ⅲ 2016: 4,947 jobs (2,952 direct, The construction job predictions 0419, YahNica Crawford, (313) 446-0329 ry, if not the company that filed a bid express- 1,995 indirect) don’t include any discussions of NEWSROOM (313) 446-0329, FAX (313) 446- largest. It also predicted another 11,079 how many positions would be filled ing interest in building the entire 1687 TIP LINE (313) 446-6766 Companies direct and indirect jobs created by by unemployed labor, how many bridge project. REPORTERS and workers in- the project outside of Michigan. The would elevate employed people to Crain’s left a message for its Daniel Duggan, deputy managing editor: Covers real estate. (313) 446-0414 or [email protected] terested in the study’s numbers are based on better-paying jobs, pay rates or how president, Tom Stover. Jay Greene, senior reporter: Covers health care, Fisher NITC are going estimates from the Michigan much of the work would be done by Toebe has done some of the state’s insurance, energy utilities and the environment. Department of Transportation. specialists from elsewhere. (313) 446-0325 or [email protected] to have to wait, however, for a lot biggest construction projects, in- Chad Halcom: Covers litigation, higher education, of questions to be answered. cluding the Lodge Freeway, the Zil- non-automotive manufacturing, defense contracting and Oakland and Macomb counties. Gov. Rick Snyder, Canadian waukee Bridge and the I-696/Wood- (313) 446-6796 or [email protected] Prime Minister Stephen Harper ward Avenue interchange. Tom Henderson: Covers banking, finance, technology and biotechnology. (313) 446-0337 or and other officials announced a INTEREST BIDS More recently, the firm handled [email protected] deal Friday to build the span. a $168.5 million contract (out of a Nancy Kaffer: Covers commercial real estate, the These companies responded to a Jan. 27, 2010, Michigan Department of city of Detroit and Wayne County government. A Canadian authority, to be es- Transportation request for proposals of interest for what was then called $230 million total cost) to build the (313) 446-0412 or [email protected] tablished, will oversee how the the Detroit River International Crossing bridge project. The companies Ambassador Gateway Project that Bill Shea, enterprise editor: Covers media, advertising and marketing, the business of sports, bridge, plazas and highway inter- expressed interest as general contractors to finance, build and/or operate started in 2009 and the $20 million and transportation. (313) 446-1626 or changes will be bid, awarded and the crossing, or a variation of that; or were interested in providing design, Ambassador Bridge deck replace- [email protected] financial or legal advice. A to-be-formed Canadian bridge authority will solicit Nathan Skid, multimedia editor. Also covers the built. The plan is to have a single ment project that began in 2010. food industry and entertainment. (313) 446-1654, private sector contractor design, fi- bids again under a plan announced Friday. The firm also successfully led [email protected] nance, build and operate the span. the $12 million emergency recon- Dustin Walsh: Covers the business of law, auto Ⅲ Acciona SA, Madrid, Spain Ⅲ Gowling Lafleur Henderson LLP, suppliers and steel. (313) 446-6042 or Many of the civil engineering struction of the Nine Mile Road [email protected] Ⅲ Ottawa Sherri Welch: Covers nonprofits, services, retail and infrastructure construction ACS Group, Toronto overpass atop I-75, which had to be Ⅲ Hochtieff PPP Solutions North and hospitality. (313) 446-1694 or firms that submitted bids on the Ⅲ Bank of Nova Scotia, Toronto done in three months after a truck [email protected] Ⅲ BMO Capital Markets, Chicago America Inc., New York City, project to the Michigan Department Toronto fire destroyed the span. ADVERTISING of Transportation two years ago are office Another likely participant in the Ⅲ Kiewit Cos., Vancouver ADVERTISING DIRECTOR Marla Wise, (313) 446- based overseas, but that doesn’t Ⅲ Bouygues Travaux Publics SA, project is Shelby Township-based 6032 or [email protected] Paris Ⅲ Macquarie Group Ltd., Sydney, mean the NITC project will be Australia Dan’s Excavating Inc., which has SALES INQUIRIES: (313) 446-6052; FAX (313) built by Spanish, French or South Ⅲ Cintra Infraestructuras SAU, done many projects for MDOT over 393-0997 Madrid Ⅲ Meridiam Infrastructure, AECOM SENIOR ACCOUNT EXECUTIVES: Matthew J. Korean workers. Technical Services Inc., New York the years. In April, the agency Langan, Tamara Rokowski “Just because the contractor Ⅲ Citigroup Global Markets Inc., awarded a $9.3 million design-build ADVERTISING SALES Christine Galasso, Lori New York City City Tournay Liggett, Dale Smolinski may be a foreign-owned company, Ⅲ contract — to complete the final CLASSIFIED SALES (313)-446-0351 Ⅲ Daelim Industrial Co. Ltd., Seoul, PCL Civil Constructors Inc., it makes business sense to use Edmonton, Alberta portion of the $230 million Ambas- EVENTS DIRECTOR Nicole LaPointe South Korea EVENTS COORDINATOR Kacey Anderson workers closer to where the bridge Ⅲ Scott Associates Architects Inc., sador Gateway Project by October is being built,” Fisher said. Ⅲ Flatiron Construction Corp., — to Dan’s Excavating and Kansas SENIOR PRODUCER FOR DIGITAL/ONLINE Longmont, Colo. Toronto PRODUCTS Pierrette Dagg Ⅲ SNC-Lavalin Inc., Montreal City, Mo.-based TranSystems Corp. MARKETING ARTIST Sylvia Kolaski Ⅲ Fluor Enterprises Inc., Austin, Crain’s left a message for Virgil SALES SUPPORT Suzanne Janik, YahNica Crawford Ⅲ Walsh Construction Co., Chicago Union and nonunion jobs Texas Klebba, a vice president at the AUDIENCE DEVELOPMENT MANAGER Ⅲ Walter Toebe Construction Co., Candice Yopp The project represents a lot of Ⅲ Global Via Infraestructuras SA, firm. MARKETING COORDINATOR Jenny Griffith Wixom hiring on both sides of the border, Madrid Canadian entrepreneurs are al- PRODUCTION MANAGER Wendy Kobylarz PRODUCTION SUPERVISOR Larry Williams and it’s expected that both orga- Source: MDOT ready investing in the project and nized labor — which financed pro- its associated $1.4 billion Windsor- CUSTOMER SERVICE bridge lobbying and donated to leg- place for the hiring of returning vet- have to be imported. Essex Parkway, which will con- MAIN NUMBER: Call (877) 824-9374 or write islators — and nonunion workers erans, as well, said Patrick Devlin, Many of the jobs are expected to nect Highway 401 to the bridge. [email protected] SUBSCRIPTIONS $59 one year, $98 two years. will be employed. secretary-treasurer of the Detroit be very short term. One is Ted Lorenz of Windsor, Out of state, $79 one year, $138 for two years. Even at this preliminary stage office of the Michigan Building and “Many of the workers only work who attended Friday’s bridge an- Outside U.S.A., add $48 per year to out-of-state rate for surface mail. Call (313) 446-0450 or — construction could still be a Construction Trades Council. He said for a brief period of time, given nouncement. He’s started a dirt- (877) 824-9374. year or two away — unions and ongoing programs such as “Hel- their specialization,” economist hauling firm, Linx Integrated Co., SINGLE COPIES: (877) 824-9374 REPRINTS: (800) 290-5460, ext. 125; trade associations working with mets to Hard Hats” aim to move vet- Ronald Utt told Crain’s in 2011. “A bought a pair of $160,000 Volvo (717) 505-9701, ext. 125; or lindsay.wilson skilled trades expect a massive erans into construction jobs. bulldozer operator is in early to dump trucks last week and plans @theygsgroup.com TO FIND A DATE A STORY WAS PUBLISHED: number of public-works jobs. “There’s a lot of training pro- grade and reshape the land, but his to buy five more this week. He in- (313) 446-0367 or e-mail [email protected] “The unions are absolutely ec- grams available for returning work gives way to others’.” tends to work on both the parkway CRAIN’S DETROIT BUSINESS IS PUBLISHED BY static,” said Todd Doenitz, a board vets,” he said. “This is going to be Utt is a senior research fellow in and bridge. CRAIN COMMUNICATIONS INC. member and past chairman of the a very big plus for them.” economic policy studies at the con- “It’s about time this happened,” CHAIRMAN Keith E. Crain Associated General Contractors of servative Heritage Foundation think he said of the project. PRESIDENT Rance Crain SECRETARY Merrilee Crain Michigan. “It’s hopefully going to tank in Washington, D.C. He for- The Detroit-Windsor border — TREASURER Mary Kay Crain represent a decrease in unemploy- Full roster merly worked for the U.S. Depart- which includes the bridge, a tunnel Executive Vice President/Operations William A. Morrow ment for the skilled trades in The positions themselves will be ment of Housing and Urban Develop- and ferries — is the busiest in North Group Vice President/Technology, Manufacturing, Circulation Michigan.” heavy civil construction jobs: ment, Office of Management and America and carries a quarter of all Robert C. Adams He also expects work for local equipment operators, welders, Budget and the U.S. Chamber of Com- U.S. trade with Canada, estimated Vice President/Production & Manufacturing general contractors, who will like- pavers, Fisher said. merce. at about $120 billion annually. Dave Kamis Chief Information Officer ly team up with international “You’re going to see a lot of jobs A few hires may come from NITC backers said the new span Paul Dalpiaz bridge companies. Southfield- for steel erecters and ironworkers, overseas. There’s a real chance is needed to protect and bolster Chief Human Resources Officer Margee Kaczmarek based Barton Malow Co. and Detroit- even carpenters,” he said. Plumb- that one of the foreign firms that that trade — and jobs — by provid- Director of Audience Development Operations based Walbridge Aldinger Co. are the ing, mechanical and electrical jobs has already expressed interest in ing redundancy to the Ambas- Michelle Roth type of local firms that will likely will be fewer and primarily for the bridge could win the bid, said sador Bridge. G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) be in the running for major construction of the plazas, he said. Brian Chase, an investment analyst The span would be constructed EDITORIAL & BUSINESS OFFICES: chunks of the work. Whoever builds the bridge on large infrastructure projects for between Detroit’s industrial Del- 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 It is not likely to be only trade should have no trouble finding la- the Washington, D.C.-based Inter- ray neighborhood near Zug Island Cable address: TWX 248-221-5122 AUTNEW DET unions getting work, said Fisher, bor: Michigan has lost 80,000 con- national Finance Corp., part of the and Windsor’s Brighton Beach CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly, except for a special issue the whose group represents nonunion struction trade jobs in last decade, World Bank Group. area. The plan is to have the pri- third week of August, and no issue the third week trades workers. Fisher said. “While local, this is a mega pro- vate sector privately finance its of December by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. “There are a lot of protections in “There are certainly a lot of out- ject,” Chase said, “which means a construction and operate it while Periodicals postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send place so that nobody is discrimi- of-work construction workers who large, probably international con- the governments retain owner- address changes to CRAIN’S DETROIT BUSINESS, nated against based on labor affili- can be put to work through this,” struction firm would be involved, ship. Tolls would repay debt. Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in ation,” he said. “At the end of the he said. with local subcontractors working Daniel Duggan contributed to U.S.A. day, we’re expecting that the con- He expects most of the jobs to be for that contractor.” this story. Entire contents copyright 2012 by Crain Communications Inc. All rights reserved. tracts and specs will be bid out Michigan hires, but some may Chase was formerly a finan- Bill Shea: (313) 446-1626, Reproduction or use of editorial content in any competitively.” come from surrounding states and cial/legal analyst with Los Ange- [email protected]. Twitter: manner without permission is strictly prohibited. The jobs are going to be a good Canada. Specialists likely will les-based Nossaman LLP, which spe- @bill_shea19 20120618-NEWS--0026-NAT-CCI-CD_-- 6/15/2012 5:25 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS June 18, 2012 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF JUNE 9-15

A tweet sent out by WDIV- discuss the creation of not force them into a 401(k)- Channel 4 had Detroit Mayor Detroit water what would be called the style retirement plan, the Dave Bing saying 2012 will be Advanced Physicians Care AP reported. To 5-Hour Organization and represent The Michigan Court of the last year for both events — an assertion quickly re- department more than 50 primary care Appeals has declined to con- buted by Parade Co. Presi- physicians with patients in vene a special panel that dent and CEO Tony Michaels. Oakland and Macomb could have kept off the fall guru, ‘useless’ Bing did not say the fire- reschedules counties. ballot a petition to repeal works and parade are over. Asterand plc, the largest the state’s emergency man- What Bing did say is that tenant at Detroit’s Tech- ager law. That means that the city won’t be able to pay bond offering Town incubator, said it has as early as this week Public the $700,000 tab for the pub- reached an agreement, Act 4 could be suspended is a dirty word he Detroit Water and lic safety and public works pending shareholder ap- pending the November Sewerage Department anoj Bhargava, who his swanky events, will host portion of the events be- proval, to sell its human T has tentatively election. built 5-Hour Energy the invite-only party Friday yond 2012. tissue bank business for $9 planned a return to the The Senate has passed M into a multibillion- at Roostertail on Detroit’s But the Parade Co. and million to two subsidiaries and sent to Gov. Rick Snyder bond market Wednesday dollar energy drink empire, Riverfront and is expecting the city have asked for sup- of Cambridge, Mass.-based with a $596 million offering bills that would ban so- offered some simple advice more than 1,500 guests. port from Wayne, Oakland Stemgent Inc. to fund construction and called synthetic marijuana. to other entrepreneurs last More than 150 guests from and Macomb counties to Commerce Township- terminate swap agree- week when he was honored around the globe are also support law enforcement ments. based HoMedics Inc. sold its as “Master Entrepreneur” being flown in first-class on and public works and have A group of underwriters scale and thermometer OTHER NEWS in the annual Ernst & Young Conway’s dime, he said. found support for this year. led by Goldman Sachs Group business, Taylor Precision Southfield-based Lear Entrepreneur of the Year Five bands are slated, in- Michaels said that collab- Inc. delayed the original Products Inc., to private eq- competition. cluding Atlanta-based cover oration is “expected to con- Corp. will team with the De- bond sale scheduled for last uity firm Centre Partners. “Try to avoid useless band Party on the Moon which tinue going forward.” troit Public Schools to launch Thursday as the city faced Terms of the deal were not things,” he said. “We ask: Is also played President Barack a tutoring program at J.E. legal challenges to its con- disclosed. it useful? If it’s not, it better Obama’s inauguration party. Clark Preparatory Academy sent agreement with the Van Buren Township- be entertaining. If it’s not, Guests will be treated to ‘Walk’ through local books that is worth up to $1.5 mil- state. Some said possible based Visteon Corp. took an- then it’s in the third pile: lavish heavy appetizers Walking while reading lion over the next three spillover from Detroit’s bad other step toward remak- Useless.” with ice sculptures lined sounds like a bad idea, but years. press continues to be a con- ing itself as shareholders Bhargava said he receives with crab and lobster and a Wayne State University is Victor Jayasundera, co- cern. elected nominees who sup- two one-page reports every well-stocked bar. putting a twist on the con- owner of Jos. Campau Physi- port revamping the compa- day: “What did we make and The party will crescendo cept with its inaugural cal Therapy Inc., Hamtram- ny, Bloomberg News re- what did we spend?” He pre- with a fireworks display Made in Michigan Literary ck, was sentenced to 30 ON THE MOVE ported. dicted that four of the five over the river, Conway said. Walk, to be held June 30 in months in prison, three Henry Ford Health Sys- startups he is growing will However, he is keeping Detroit’s Midtown neigh- Jim years of supervised release tem in Detroit, a group led be $1 billion companies in some details a secret, includ- borhood. The event will fea- Nicholson, and $855,484 in restitution by the Altarum Institute in the “next four to five years.” ing the identity of a “major” ture a range of local authors president for defrauding Medicare of and CEO of Ann Arbor and the Michi- He was one of 11 entrepre- actor and an unnamed who will read from their lat- nearly $2 million. Co-owner Detroit- gan Public Health Institute in neurs from throughout celebrity musician to sing est works at several stops. Fatima Hassan of Dearborn based PVS Okemos will receive a total Michigan and northwest the National Anthem. Among the authors fea- received a four-year sen- tured are M.L. Liebler, Terry Chemicals of $26.2 million from the Ohio honored Thursday “I have a theory: If your tence May 17 for her role. Blackhawk, Teresa Scollon, Bill Inc., was ap- federal government to com- night. For list of local win- next party isn’t bigger and Home sales in metro Harris and Francine Harris. pointed to plete projects that will re- ners, see the story at better than the last, don’t do Detroit rose 11 percent over www.crainsdetroit.com. it,” Conway said. “Unless The event is sponsored by the board of duce health care costs and Nicholson May 2011, with prices up The next step for Bharga- you’re friends with Bill Wayne State University Press, directors of improve quality. more than 20 percent, ac- va will be to compete at the Gates, you’ve never been to the WSU Student Budget Detroit-based DTE Energy Co. cording to a report released national entrepreneur a party like this one. We Committee, the Wayne William O’Neill, M.D., a by Farmington Hills-based awards, also convened by want people to walk away Writers Forum of WSU, the pioneer in angioplasty LANSING NEWS Realcomp II Ltd. Also, 301 Ernst & Young, in Novem- saying something.” WSU Department of Eng- treatment for heart attacks, Protect Our Jobs Coali- lish, Poets & Writers Inc. is to become medical direc- single-family home permits ber in Palm Springs, Calif. Conway said the event is tion, backers of a proposal through its Midwest-Detroit tor of Henry Ford Hospital’s were issued, making May Bhargava will also be the about marketing his firm, to write collective bargain- Readings Programs Grant, new Center for Structural the strongest month since keynote speaker for Crain’s but it’s more about putting ing rights for workers into and the WSU Motown Heart Disease July 31. April 2006, when 335 per- Salute to Entrepreneurs on a legendary party. “I’m the Michigan Constitution, awards on June 26. (See de- not going to be around for Learning Community. O’Neill had been CEO for mits were issued, accord- submitted more than twice tails, Page 11.) our 50th anniversary, so this research at the University of ing to the Building Industry the number of signatures is going to be a celebration.” Miami Miller School of Med- Association of Southeast BITS & PIECES icine and held positions at needed to place it on the Michigan. Detroit’s best party yet? Detroit Edison President William Beaumont Hospital November ballot, they an- The Detroit Medical Cen- After 25 years in busi- Fireworks over fireworks and COO Steven Kurmas will and University of Michigan nounced. The Michigan De- ter unveiled its new $43 mil- ness, Van Conway, CEO of Despite a tweet to the receive the Engineering Soci- Hospital. partment of State will re- lion Children’s Hospital of Birmingham-based turn- contrary, organizers of the ety of Detroit’s 2012 Horace Jeffrey Taylor, senior view the signatures to see Michigan Specialty managing editor of the De- that enough are valid. around firm ConwayMacken- annual Target Fireworks and H. Rackham Humanitarian Center–Detroit. It is the first zie Inc., plans to throw one America’s Thanksgiving Pa- Award on June 27 at The Fill- troit Free Press, has left to Ingham County Circuit new medical building com- become top editor at the In- party to rule them all. rade say the events are not more in Detroit. Award and Court Judge William Collette pleted since Vanguard Health dianapolis Star. Taylor Conway, notorious for in jeopardy. event details are at esd.org. has dismissed an attempt Systems Inc. acquired the spent 17 years in various by the city of Detroit’s cor- medical center. Separately, roles at the Free Press. poration counsel to void a DMC said that it will not William “Kriss” Andrews consent agreement between hire smokers after July 1 as has been appointed De- the city and the state. In the part of its nicotine-free hir- troit’s program manager. short term, the ruling ing policy. He has been executive vice means the state won’t with- BEST FROM THE BLOGS president and CFO of The new Detroit Par- hold a revenue sharing pay- adise Valley Music Festival is READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS Auburn Hills-based Energy ment. Krystal Crittendon, coming to downtown De- Conversion Devices Inc. who heads the Detroit Law troit July 13-15, city leaders Humor after the storms Science center makeover? Tom Leyden was Department, had said the named sports director at consent agreement was announced. It will be held in the Paradise Valley cul- The panel at the The Detroit Science WXYZ-Channel 7. He had void because the city’s annual“ Crain’s CFO Center“ building could been interim sports direc- charter bars it from enter- tural and entertainment Summit …, on weathering reopen as soon as this tor since Don Shane retired ing into contracts with any district, AP reported. financial storms, was, fall, operating under a in March. entity that is in default to The city of Detroit surprisingly, pretty funny new name and new it. After the ruling, Law De- says it mistakenly sent un- stuff. Funny now that the nonprofit, the Michigan partment attorneys asked paid parking ticket notices storms have passed, that Science Center. COMPANY NEWS from years ago to 19,000 is. Collette for a motion for re- ” Three Southeast consideration. people, AP reported. De- ” Michigan medical groups The House approved troit officials apologized — Prism Medical Group, Silver legislation that would af- and are sending notifica- Reporter Tom Henderson’s blog about accounting, Reporter Sherri Begin Welch’s blog about Southeast Pine Medical Group and Troy fect new teachers by ending tions of the error. People banking, venture capital and high tech can be found Michigan nonprofits can be found at Internal Medicine — have state-provided health care who improperly paid the at www.crainsdetroit.com/henderson www.crainsdetroit.com/welch signed a letter of intent to coverage in retirement but city may request a refund. DBpageAD.qxp 6/6/2012 8:50 AM Page 1

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