Manufacturing Takes Off the Gloves

20130520-NEWS--0001-NAT-CCI-CD_-- 5/17/20137:46PMPage1 ©Entire contentscopyright2013byCrainCommunicationsInc.Allrightsreserved Trust 80-acre sitefromthe cently recentlyacquiredthe member clubhouse. track, anexhibitareaanda years, willalsoincludeatest finished withintwoorthree space andbathroomincluded. auto enthusiasts,withaloft controlled storagebaysfor “condominiums” —climate- tail spaceandatleast40-60car cluding arestaurantandre- the project’sfirstphase,in- Woodward DreamCruiseon plete intimeforthe2014 ground inthefall. company hopestobreak based and formerCEOofFerndale- co-owner ofM1Concourse event center. center inPontiacintoanauto eral MotorsCorp ject toredevelopaformer a $40million-$50millionpro- have mostofthefinancingfor liminary siteplanapproval Wednesday itobtainedpre- and subsidiaries,Page16 Largest divisions,affiliates increase expectedtoease Survey: Insurancerate capital isbestinU.S. State’s riseinventure mind-numbing numbers Orr’s plan forDetroit’s test track,eventcomplex Financing nearlydonefor

NEWSPAPER www.crainsdetroit.com Vol.29,No.20 Crain’s Crain’s This JustIn Page 3 M1 Concourse,whichre- The completecenter,tobe Construction couldbecom- Bradley Oleshansky Owners of , MXM Health plans toannounce Lists M1 ConcourseLLC — ChadHalcom . validation , saidthe , CEOand RACER Gen- Y audience. the mindsofsomeradioexecutivesthanaGen tion isagingandperceivedaslesslucrativein FM morningtalkshowduo—butthatgenera- whose finalshowwasFriday,wereaclassic and MikeClarkfrom longtime morningratingskingsDrewLane weeks iswhy and radioindustryinsidersalikeinrecent Greater Mediamaybelookingtodialinyoungermarket For ’RIF, ‘W’isfor why Freak.” Chuck The “Dave and Urquhart, a.k.a. Charles Hunter and will beDave replacements have itthattheir WRIF. Rumors at 101.1FM final timeFriday signed offforthe and MikeClark Drew Lane(left) “Right now,everythingisspeculativere- WRIF isarockstationandLaneClark, The easyanswerisage. The questionthathaspuzzledlisteners M b M ing uptheremainsof workers. Butthebulldozersclean- the industryischanging. in theworld,areareminderthat one ofthelargestassemblyplants Wixom AssemblyPlant,formerly C off thegloves Manufacturing takes o l i u . ’s once4.7million-square-foot c e h - CRAIN’S DETROITBUSINESS CRAIN’S DETROITBUSINESS i c B g o Y a hands ofitsblue-collar long beenheldinthe ichigan’s economyhas B l D Greater MediaInc. n l Y a USTIN B ’ r s ILL

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/ investment dollarsarestartingtoflowback. fered sincethen,likemuchofDetroit,but vin GayeandArethaFranklin.Thedistrictsuf- ers wereknowntofrequentthestripwithMar- between SixandEightMileroads.Andtheplay- bought hisfirstsuitonthisstretchofLivernois Detroit Lions Drive ofDetroitshopping.CharlieSanders,the ladies’ boutiques. tomers stepoutofbarbershops,restaurantsand A stretchofbrickstorefrontsappearandcus- ment changes.Sundapplesthroughtreeleaves. pedestrians walkingalongLivernoisAvenue. down onthepavement,leavinglittlerelieffor arated bywideswathsofparking.Thesunbeats collision centersandcash-checkingsep- nouncing a$200,000prizefrom for $1.7Mface-lift in thefastlane Livernois Avenue

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s Executives ’ ProFootballHallofFametightend, CRAIN’S DETROITBUSINESS Analysts VS. VS. Detroit EconomicGrowthCorp B Y A MY H AIMERL $2 acopy;$59year ArtPlace ERIC KULIN/NEWSCOM Roostertail, JUNE 13 JUNE 13 Detroit 5 p.m. , anation- . isan- ® 20130520-NEWS--0002-NAT-CCI-CD_-- 5/17/2013 4:54 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS May 20, 2013

MICHIGAN BRIEFS Effort to make Grand Rapids County lost their jobs last week, MLive reported. Hemlock is more rapid gets a push from EPA After job fair fails, firm manufactures new workers among the world’s top producers Back in April 2012, Crain’s Michi- of polycrystalline silicon, the key When a career fair turned into a disappointment, gram, 12 remain with the company. That’s a “huge gan Business wrote about an effort ingredient in solar cells and semi- Jonathan DeWys could have whined that the lack of success rate” compared to the “astronomical” in Grand Rapids to make the Grand conductor devices. skilled workers was hampering his company’s turnover the company used to see with new hires, Ⅲ Memorial Medical Center in Lud- River more rapid, in part to attract growth. Instead, he channeled the lessons into de- DeWys said. The company has spent $200,000 on the ington has signed a letter of intent whitewater enthusiasts. MiBiz re- veloping a better solution: a new, in-house educa- curriculum, he said. to join Spectrum Health System in ports that the latest champion of the tional program. In recognition of the program, the Michigan Manu- Grand Rapids, the Grand Rapids $27 million effort is the U.S. Environ- “We spent $10,000 and our own time to promote facturers Association honored DeWys with its 2013 Business Journal reported. Memori- mental Protection Agency’s Urban Wa- (the career fair), and it was a flop,” said DeWys, John G. Thodis Michigan Manufacturer of the Year al Medical, an 87-bed acute care hos- ters Federal Partnership. president of DeWys Manufacturing Inc., a Marne-based award for a small-tier company. The award was pre- pital with a family health clinic in The partnership targets metal fabrication company that employs 140. “I said, sented last week in Lansing. Hart, confirmed in October that it community-driven revitalization ‘If we can’t find them, we’ve got to build them.’ ” DeWys Manufacturing has started working with was looking for a “larger, integrat- projects that focus on water systems That planted the seed for what the company calls K-12 schools, Grand Rapids Community College and Fer- ed health care system” to join, that and promote economic, environ- DeWys University. The program is not a degree- ris State University, DeWys said. In particular, the its finances were in good shape but mental and social enhancement. granting institution sanctioned by the state, but it company wants to share manufacturing’s opportu- that changes in the industry were The Restore the Rapids project aims does offer potential hires a 12-week training course nity with high school counselors, many of whom driving consolidations. to create a whitewater park in the built around curriculum in six fields tailored to lack firsthand experience with modern advanced Ⅲ Regulators seized two of the 11 Grand River near downtown Grand openings at the company. manufacturing, he said. subsidiary banks owned by Rapids in an effort that would re- Of the 15 people who have gone through the pro- — MiBiz Lansing-based Capitol Bancorp Ltd., quire the removal of several dams. the Lansing State Journal report- “This is huge for us and shows we ed. The Federal Deposit Insurance bines, Altronics Energy LLC in Grand companies have scaled back their damages. The jury decided Dow had have a lot of support behind us,” Corp. arranged for healthy banks Rapids, folded, MiBiz reported. estimates in terms of wind turbine participated in a price-fixing con- said Chris Muller, co-founder of Re- to take over Pisgah Community Bank Tim Mroz, vice president of mar- production this year and next.” spiracy for the chemical urethane, store the Rapids. “It gives us horse- in Asheville, N.C., and Sunrise Bank keting and communications at The used in a variety of products. power and the right people to go to.” in Valdosta, Ga. Right Place Inc., the Grand Rapids- Dow had asked the judge for a Ⅲ Grand Rapids retained its ti- based economic development orga- Dow to appeal $1.2B in damages new trial and to force the plaintiffs tle as BeerCity U.S.A. in the most After supplier falters, company nization that helped Altronics se- to try their cases individually. Both order in class-action suit recent poll conducted by Examin- cure funding from the Michigan requests were denied. The final or- er.com. Following Grand Rapids is gone with the wind turbines Economic Development Corp., said Midland-based Dow Chemical Co. der by judge John W. Lungstrum, was Kalamazoo, with Ann Arbor The problem with being on the the state incentives were also ter- plans to appeal a federal judge’s or- filed last week, includes a tripling also in the top 10. cutting edge is that it can cut both minated. der last week to pay $1.21 billion in of the jury verdict, as called for by ways. Despite generating millions “What we’ve found in the past damages after it lost a class-action U.S. antitrust law. Find business news from in government incentives and year and half is a decline in wind in- lawsuit that accused it of conspir- around the state at crainsdetroit praise for its innovative wind tur- dustry components at all levels, ing to fix prices. .com/crainsmichiganbusiness. bine design, WindTronics LLC of from large scale all the way down to The Feb. 20 jury verdict in U.S. MICH-CELLANEOUS Sign up for Crain's Michigan Muskegon has ended operations small units,” Mroz said. “Even in District Court in Kansas City, Kan., Ⅲ About 50 workers at Hemlock Business e-newsletter at crains after the only supplier of its tur- our travels to Europe, a lot of major was for Dow to pay $400 million in Semiconductor Group’s plant in Bay detroit.com/emailsignup.

Presenting Sponsor Luncheon Underwriters Media Sponsor Murray & Ina Pitt Charitable Trust 2013 Awards Crain’s Detroit Business Telemus Capital Partners The Ideal Group, Inc. Business Leadership: Bronze Level Sponsors The Tobin Group Marcia & Eugene Applebaum/Arbor Title Connect, LLC The Ideal Investments Group Barbara Ann Karmanos Cancer Contributing Sponsors Group, Inc. Institute Amerisource Industrial Supply Beztak Companies Barris, Sott, Denn & Driker P.L.L.C. Penny & Harold Blumenstein Camp Tanuga Rising Entrepreneur: Couzens Lansky Citizens Bank Pam Turkin Dakkota Integrated Systems, LLC Henry Ford Health System Video Underwriter Dawda, Mann, Mulcahy & Sadler, PLC Jill & Lee Hurwitz Founder, Just Baked Detroit Design Center Jaffe Raitt Heuer & Weiss, P.C. FirstMerit Bank Harriet & Norman Rotter Employees of the Year: General Motors Corporation Denise & Michael Tobin Goldman Sachs & Company Gold Level Sponsors Ricardo Collins MassMutual Southeast Michigan Supporting Sponsors The Palace of Auburn Hills Midwest Health Plan Amherst Partners, LLC MotorCity Casino Beaumont Health System Herb Conroy RM Freedman Trust Benzinga Assisted Transition Sue Ellen Eisenberg & Best Block Company Deanna Knibbs Associates, P.C. Brooks Financial Elwin and Company Wayne Industries Burton-Katzman Development Co. Silver Level Sponsors Cranbrook Educational Community Copper Level Sponsors Ellyn & Jon Davidson A Different Dog Suzi Dell & Jodi Neff Nora & Guy Barron, Barron Family Earle Erman Wednesday, June 12, 2013 Foundation Gateway Travel BDO USA/Stephanie Rosenbaum Judy Greenwald Hadas & Dennis Bernard Helene & Art Indianer Broder & Sachse Real Estate Services Joelson, Rosenberg, Moss, Cohen, 11:30 a.m. - 1:30 p.m. Community 1st Broner Glove & Safety Warren & Drasnin Development/G. Fisher Butzel Long Linda & Dennis Kayes The Henry, Dearborn Construction Calvin Klein Furniture Muchmore Harrington Smalley & Clark Hill PLC Associates, Inc. Ticket & Sponsorship Information: Detroit Jewish News Pagac & Company, P.C. Dorie Shwedel & Associates, Inc. Pappas Financial (248) 233-4213 or [email protected] Honigman Miller Schwartz and PublicCity PR Cohn L.L.P. Pulse 220 www.ehimrx.com Gilda & John E. Jacobs Leah & Daniel Rosenbaum Just Baked Linda & Leonard Sahn Linda & Thomas Klein Simmons & Clark Jewelers Strictly Business raises funds for people Level One Bank Simons Michelson Zieve, Inc. with disabilities, unemployed workers, Lillian & Joseph Schwartz Lori & Maurice Pogoda Sharon & Jim Snyder the frail elderly and at-risk youth Charitable Fund Philanthropic Fund Steward Media Maddin, Hauser, Wartell, Roth & Swistak & Levine, P.C. Honorary Chair & Keynote Speaker: Heller, P.C. David Victor Gloria & Ed Meer Weber & Olcese, P.L.C. Lisa & Brian Meer Oakland University David T. Fischer Erica Peresman & David Jaffe As of 5/9/13 Chairman & CEO, The Suburban Collection Sally & Graham Orley 20130520-NEWS--0003-NAT-CCI-CD_-- 5/17/2013 7:56 PM Page 1

May 20, 2013 CRAIN’S DETROIT BUSINESS Page 3 Michigan’s VC Numbing numbers Second Stage activity takes EXPENSES The city’s spending on its most costly budget items, such as salaries and paying down its Orr: Decision debt service, continues to exceed revenue.

$1,446 $1,405 biggest jump $1,289 $1,279 $1,233 on bankruptcy in the nation in 2 months BY KIRK PINHO What to do if success is more BY TOM HENDERSON CRAIN’S DETROIT BUSINESS In millions than you can handle, Page 11 CRAIN’S DETROIT BUSINESS Emergency Manager Kevyn Orr doesn’t While venture capital activity continued to have an exact date circled on the calendar, contract nationwide in 2012, it grew in Michi- but in about two months he plans to make gan, with the state climbing in the national one of his biggest decisions: whether a Chap- rankings from 25th in investment activity in ter 9 municipal bankruptcy is the best option Company index ’08 ’09 ’10 ’11 ’12 2011 to 15th, according to the annual report of the for Detroit. Salaries, wages and overtime Pension These companies have significant mention in this Ann Arbor-based Michigan Venture Capital Asso- The decision will hinge on how much Benefits Debt service and week’s Crain’s Detroit Business: ciation, Other expenditures pension obligation certificates progress is made on a number of fronts, espe- The report is being released this weekin con- cially things that can dramatically change Arboretum Ventures ...... 6 junction with the 32nd annual Michigan Growth the city’s bot- ArtPlace ...... 1 Capital Symposium, which will take place Tues- ACTUAL EXPENSES tom line, like MORE ON DETROIT’S Center for Automotive Research ...... 23 day and Wednesday at the Marriott Eagle Crest in labor negotia- Fiscal year 2012 Chase Bank...... 1 Ypsilanti. tions, asset FINANCIAL TROUBLES CIMX 88.7 FM ...... 23 Michigan’s VC firms invested more than $242 Other operating: sales or lease Compuware ...... 17, 26 million last year, compared to just less than $240 million deals, and re- Covisint ...... 17 $100 million in investments in 2011. (19%) structuring Edward Lowe Foundation ...... 11 Michigan had the biggest rise in the rankings plans. of any state with its 10-place jump. The number A week ago, Esperion Therapeutics ...... 17 of deals was also up sharply, from 33 in 2010 to Orr submitted Ford Foundation ...... 21 Public his financial Freudenberg-NOK ...... 23 30 in 2011 to 47 last year. safety: and operating Global Development Partners ...... 13 California retained its status as the No. 1 $569 millon state, by far, with a total invested last year of plan to State Hatch Detroit ...... 21 (46%) $14.1 billion. Massachusetts was No. 2 at $3 bil- Treasurer Howard & Howard Attorneys ...... 24 lion, and New York third at $1.9 billion. Andy Dillon. Human Capital ...... 12 Michigan ranked third in the Midwest, be- The plan, re- Lawrence Gardner Associates ...... 24 Other quired by Pub- M1 Concourse ...... 1 hind Illinois, which had $540 million in invest- departments: ments while falling two places to No. 7, and be- lic Act 436, the Marygrove College ...... 21 $290 million (24%) state’s emer- NATHAN SKID/CDB McGraw Wentworth ...... 3 hind Ohio, which had $289 million while Kevyn Orr: Bankruptcy gency manager Mercer ...... 25 climbing seven spots to No. 12. Debt service: $133 million (11%) “messy and severe” — but law, provides a also a bargaining chip. Michigan-Brazil Center & Support Office 13 See VC, Page 25 big-picture Michigan Economic Development . . . . . 11 road map of the Michigan Venture Capital Association . . . 3 Bonderholders’ reaction: Orr’s cost-cutting report no surprise, Page 24 O’Keefe and Associates Consulting . . . . 24 REQUIRED CONTRIBUTIONS and overhaul of At a glance: Highlights from Omega Solutions ...... 11 Because the city does not generate sufficient city finances Orr’s financial plan, Page 24 Oxus ...... 13 Survey: Employer cash flow to fund its expenses, it has Orr has in Plunkett Cooney ...... 22 deferred making pension contributions. mind. Ralco Industries ...... 15 (Figures for fiscal year 2013) Now that the report is public, Orr said dur- SmithGroup JJR ...... 25 ing an interview with Crain’s last week, he Specs Howard School of Media Arts . . . . 22 efforts, economy Contribution will begin moving more quickly in tactical Tanner Friedman Strategic Communications 1 made: ways — including having discussions with University of Detroit Mercy ...... 21 $31 million the city’s four dozen labor unions in the next University of Michigan ...... 23 ease insurance hikes Wayne State University ...... 23 See Orr, Page 24 William Davidson Foundation ...... 26 BY JAY GREENE Contribution Workforce Intelligence Network ...... 23 WRIF FM 101.1 ...... 1 CRAIN’S DETROIT BUSINESS not made: $103 million REVENUE/EXPENDITURES WXYT FM 97.1 ...... 22 Employer health insurance costs in Southeast Figures in millions Michigan are expected to rise this year by only 4 percent — the lowest increase in 10 years and less $1,400 than the projected national average of 5 percent — ac- HISTORICAL DEFICIT cording to McGraw Went- Fiscal stability bonds bought the city some $1,300 worth’s 10th annual Southeast time with a one-time deficit reduction in 2010. Michigan Mid-Market Group Benefits Survey. Note: Fiscal stabilization bonds Costs are down for two rea- were issued in FY 2010, $1,200 Department index sons, said Becky McLaughlin, which cause a 250 ($250) one-time deficit BANKRUPTCIES ...... 6 managing director with Troy- reduction based McGraw Wentworth. 252 $1,100 BUSINESS DIARY ...... 18 245 One is the economy, the other 260 ($377) CALENDAR ...... 19 McLaughlin 325 is actions by employers to be CAPITOL BRIEFINGS...... 4 more aggressive with consumer-driven health $1,000 CLASSIFIED ADS ...... 21 plans and wellness programs. 125 198 98 Employee costs are also expected to rise this KEITH CRAIN...... 8 95 year, depending on the plan, primarily due to $900 LETTERS...... 8 companies shifting insurance cost increases Actual Actual Actual Actual Actual Actual Est. 2008 2009 2010 2011 2012 2013 MARY KRAMER ...... 9 FY ’07 FY ’08 FY ’09 FY ’10 FY ’11 FY ’12 FY ’13 and higher out-of-pocket costs because of high- Total revenue OPINION ...... 8 With fiscal stabilization bonds Without fiscal stabilization bonds Total expenditures PEOPLE ...... 20 See Insurance, Page 25 Proceeds from debt issuance RUMBLINGS ...... 26 Start your day Inside scoop WEEK ON THE WEB ...... 26 THIS WEEK @ Want business news from around the state every See what’s on the minds of reporters on morning? Sign up for the Crain’s Michigan Morning the front lines of gathering Crain’s WWW.CRAINSDETROIT.COM newsletter at crainsdetroit.com/morning. business news at crainsdetroit.com/blogs. 20130520-NEWS--0004-NAT-CCI-CD_-- 5/17/2013 4:43 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS May 20, 2013 Key Snyder adviser prefers his place behind the curtain th 6 Annual M&A Conference: Most people have course got away from the Baird became animated as he A Michigan Perspective on Today’s Deal Environment probably never heard of real purpose of the group explained how early on that first Rich Baird and his be- Capitol and into a story about year the Cabinet and senior staff hind-the-scenes role in Briefings finding ways to reduce were debating whether to push Premier Lineup of Speakers: Gov. Rick Snyder’s ad- educational costs from a forward with the pension tax as a ministration, and he shadowy group. way to fix the state’s budget deficit Keynote: Andy Dillon, Treasurer, State of Michigan likes it that way. “There is a big differ- in the same conference room we John Diggins, Partner, Platinum Equity Partners Baird’s relationship ence between secret and were now sitting in, just steps Panel: M&A Market Update & Investor Perspectives with Snyder dates back private,” he said. “I don’t away from the governor’s office. Robert Dye, Senior VP & Chief Economist, Comerica Bank more than three think that team was at- He said Muchmore said he had decades to when he gave tempting to be secret, I worked with plenty of legislators Gretchen Perkins, Partner, Huron Capital Partners Snyder his first job out think they were attempt- and governors over the years who Networking of law school. The pair ing to be private.” had looked at the pension tax and Chris Gautz remained close over the And part of Baird’s they had all backed away from it. years, and he is now one role in the administra- “If you go after this, you might Tuesday, June 4 | 7am – 1pm | Detroit Athletic Club of the governor’s most-trusted ad- tion is to lead a number of those as well just accept you’ll be a one- $80 members / $120 nonmembers | Register: www.acgdetroit.org visers, tasked with overseeing and private discussions that eventual- term governor,” Baird said Much- leading some of the more complex ly lead to policy decisions by Sny- more said. assignments from behind the cur- der. Baird went back at him and said tain. Baird first got involved several the numbers didn’t work, and the “I’ve frankly enjoyed staying years ago when Snyder was run- problem needed to be fixed, be- under the radar,” Baird said. ning for governor and he agreed to cause the senior citizen popula- For many, the first time they help him raise money, and if Sny- tion was growing fast and younger came across Baird’s name was der were elected, people were leav- when it surfaced in documents re- said he would ing the state in lating to recent controversies sur- stick around dur- It’s not that it’s a high numbers. rounding the funding of the Edu- ing the “ Everyone else cation Achievement Authority, transition bad title, but in the room was and a “skunk works” education to help silent, including work group. him hire I’m not Snyder, who just But when the lack of informa- some of sat back and tion about Baird’s role in the ad- his top altogether watched the ani- ministration became the story, he staff. mated conversa- was made available to a few re- Baird sure what the tion between the porters to explain his role in those said it two men who projects and to define what a wasn’t a title seemed to have “transformation manager” does tough de- forgotten anyone inside the governor’s office. cision to come out means. else was even in Baird said the title came after of retirement from ” the room. When businesses face the organic demands Need growth Snyder’s chief of staff, Dennis Pricewaterhouse Rich Baird, Gov. Snyder’s “We were real- of growth, purchasing goods, or even to capital? Muchmore, needed a title for Coopers LLP to ‘transformation manager’ ly going at it make payroll, Crestmark’s service and Baird as they were making out the come on board. back and forth, innovative working capital solutions can be organizational chart and call ros- Snyder and Baird have a long his- back and forth,” Baird said. the answer. ter. Baird, 56, is not on the state tory; Baird recruited Snyder when But it never got personal be- Providing accounts receivable fi nancing and payroll but is more than just a con- he was a third-year law student at tween the two of them, and in the asset-based lending to small- and mid-sized sultant or an adviser, so they got the University of Michigan and Sny- heat of the moment, Baird said he businesses nationwide for over 16 years. creative. der worked initially as a tax spe- stopped and saw it as a teaching Since the governor is all about cialist in the Detroit office of then- moment to the new staff. reinvention and transformation, Coopers & Lybrand. “Everything that you just saw is Contact us today! and Snyder was more known for The relationship has come full how high-performance teams ac- the word “reinvention,” they de- circle with Baird helping Snyder tually operate,” Baird said. www.crestmark.com Matt Dekutoski 888.999.8050 Anntreal Hemmingway-Smith cided to call Baird the transforma- land key talent for his administra- At that moment, he knew this tion manager. tion team was going to have a whole “It’s not that it’s a bad title, but John Truscott, former director different dynamic, and he said he I’m not altogether sure what the ti- of communications for then-Gov. has never had more fun than with tle means,” Baird said with a John Engler, and now president this group. laugh. of Lansing-based Truscott Ross- That’s because it doesn’t really man, a bipartisan strategic com- encapsulate all that Baird does, munications firm, said he met Short takes which includes harnessing his Baird on the day of Snyder’s inau- Four Detroit mayoral candi- real talent for human resources, guration. dates will square off in a debate Intellectual Property | Litigation | Technology as he has had a hand in recruiting “He’s a very business-like, May 30 at the Mackinac Policy Con- nearly all of Snyder’s senior staff straightforward person to deal ference. and Cabinet members. with,” Truscott said. The debate will feature Mike Baird doesn’t make decisions, Truscott said Snyder needed Duggan, the former Detroit Medical but he does facilitate projects and someone like Baird by his side to Center CEO; Wayne County Sheriff consult with the governor and be his talent recruiter, since he Benny Napoleon; state Rep. Fred One of the most staff, as well as manage projects did not come from the political Durhal Jr.; and former state Rep. flexible and and help others manage projects. sphere. Lisa Howze. Baird was heavily involved in Besides recruitment, Baird has It is scheduled for 5 p.m. on the responsive firms the blueprint, design, execution helped the governor’s staff learn second day of the Detroit Regional we have used and financing of the EAA, the sys- how to interact with the governor, Chamber’s May 29-31 annual contem of taking Detroit’s 15 worst- who had a much different style, ference. -STEVE LITCHFIELD, ASSISTANT GC performing schools and putting coming from the business world, East Lansing-based Con- Schneider Electric them under one administrative as opposed to someone with a lot of sumers Mutual Insurance of Michi- roof and designing a whole new political experience. gan, which received a $72 million model for educating their stu- He wanted Baird to help the low-interest federal loan a year dents. staff understand how high-perfor- ago to form a nonprofit coopera- YOUNG BASILE. He said he had little involve- mance teams can use conflict to tive mutual insurance company, Strategic advisors to the world’s ment in the “skunk works” group get to the best solutions to prob- received its license last week that he said was about finding in- lems. from the Michigan Department of most innovative companies. novative ways to use technology “I knew what he wanted, he Insurance and Financial Ser- in the classrooms. When existence wanted boardroom, he wanted a vices. of the group came to light in an corporate boardroom, only he Chris Gautz: (517) 403-4403, ANN ARBOR TROY SILICON VALLEY CHICAGO April Detroit News story, Baird wanted it in this government CEO [email protected]. Twitter: www.youngbasile.com said he believed the public dis- job,” Baird said. @chrisgautz DBpageAD_DBpageAD.qxd 5/9/2013 12:11 PM Page 1 BUSINESS CAN’T WAIT ON OLD TECHNOLOGY FROM THE PHONE COMPANY.

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Page 6 CRAIN’S DETROIT BUSINESS May 20, 2013 SBA PREFERRED LENDER | TERM LOANS | REAL ESTATE LOANS | LINES OF CREDIT Arboretum leads VC round; health care firm plans to grow in Detroit

BY TOM HENDERSON tal round of $20.5 million in Fidelis Arbor-based Renaissance Venture Capital Fund, a Business Leaders for CRAIN’S DETROIT BUSINESS SeniorCare Inc., a managed health care company based in Schaum- Michigan-affiliated fund of funds Ann Arbor-based Arboretum Ven- burg, Ill., that plans to rapidly that normally invests in other ven- $153,000,000 in ture capital firms doing business tures LLC is expected to announce grow its presence in Detroit. today that it has led a venture capi- Joining in the round was Ann here. This is the first direct investment in a company by Renais- Commercial Loans sance after 11 investments in VCs. Others joining the round were the Troy-based Kresge Foundation for 2012 alone. and Grand Rapids-based Hopen Life Science Ventures, along with four previous investors. Your hometown Fidelis focuses on what is called dual eligibles, people who qualify for both Medicare and Medicaid, advantage. which is a population in the U.S. of about 9 million with an annual market of about $300 billion. Sam Wilcoxon, Fidelis’ CEO, said the company will expand its managed health care services both in Detroit and elsewhere in Michi- Being local means we’re able to leverage approvals and decisions gan. It manages its own clinics as right from our home ofﬁce. It means more answers backed by well as offering home health care the knowledge we've gained from being rooted here since 1917. services and services to those in This means a lot for the business customers we help daily. Trust long-term care facilities. us, that’s a big advantage for small business. Fidelis opened a small clinic in the Albert Kahn Building in Midtown www.thefsb.com/businessloans | 866-372-1275 in December. Wilcoxon said it has about 400 enrollees, with another 600 enrolled in assisted living centers in mid- and West Michigan. He said Fidelis plans up to five clinics in Wayne and Macomb counties by the end of 2015, each servic- ing 2,500 to 5,000 patients in a five- mile radius of the clinics. Wilcoxon said Fidelis’ average enrollee is about 75 years old with three com- plicated medical conditions. “We treat frail seniors and coor- ® dinate and manage all their health In Your Corner. care needs, including arranging Litigation Experience transportation if they need it,” he said. “This is a segment of the population that accounts for billions of dollars and is largely overlooked,” said Tim Pe- tersen, a managing director at Arboretum who will be joining the Fidelis board. “This is a management platform that has shown good results, and it’s Petersen important for us that its near-term focus is in Michigan.” Arboretum has $235 million under management. Renaissance Venture Capital manages more than $100 million. Hopen has more than $65 million in two funds. Tom Henderson: (313) 446-0337, [email protected]. Twitter: @tomhenderson2

From bet-the-company litigation in the court room to achieving goals at the negotiating table, we have the experience and depth to resolve your most important matters. Got a business question? Call 248/567-7400. BANKRUPTCIES ■ Our litigators include a former Senior Trial Attorney for the District Counsel of the IRS, a former Special Assistant Attorney for the U.S. The following business filed for bank- CELEBRATING ruptcy protection in U.S. Bankruptcy Department of Justice, a former legal counsel to the Michigan Court in Detroit May 10-17. Under Department of Treasury, and a former Detroit prosecuting attorney. 12 YEARS Chapter 11, a company files for reorga- 5 nization. Chapter 7 involves total liq- uidation. ■ Metro Detroit ■ Grand Rapids ■ Kalamazoo ■ Grand Haven ■ Lansing Enjoi Transportation LLC, 1545 Clay St., Detroit, voluntary Chapter 11. Assets and liabilities not available. — Jennette Smith DBpageAD_DBpageAD.qxd 4/26/2013 1:02 PM Page 1

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Page 8 CRAIN’S DETROIT BUSINESS May 20, 2013 OPINION Orr merits support for painful task an the city of Detroit avoid bankruptcy? We may have an answer sooner than we think. C Emergency Manager Kevyn Orr, in an interview with Crain’s last week, said that he expects to be able to determine that question as soon as the next month or two, based on the progress he is able to make in restructuring city finances. Orr released his report detailing the extent of Detroit’s financial problems plan on May 12, and although the news was of the kind that everyone expected, its magnitude was greater. The three pillars of the plan: Improve public safety, which includes blight reduction, and promote investment in the city; evaluate and restructure long-term liabilities; and streamline city operations. (See story, Page 3.) Orr can sound impatient and frustrated when he talks about the “kicking the can down the road” practices of the city over the years, especially when it comes to describing debt taken out to pay bills as “revenue.” By Orr next March, Orr says, the city literally will be unable to cash even the smallest check if nothing is done. LETTERS But people who think Orr is purely about the numbers should hear him talk about the schoolchildren who describe themselves as “always afraid,” because of the lack of police presence and the vacant buildings housing criminals and feral Keep an eye on M1 money trail dogs they walk by on their way to school. Editor: There’s no question the restructuring process will be un- Crain’s Detroit Business Clarify fracking process Now that everything concerning avoidably painful. But if it’s done correctly, Detroit also will welcomes letters to the editor. a basically useless 3.3-mile loop for be safer and run more effectively. Its residents deserve no All letters will be considered for Editor: the M1 streetcar project has been less. publication, provided they are This is just a quick comment re- approved, I sure hope that people signed and do not defame garding an editorial in the May 13 will start following the money individuals or organizations. issue titled “Weigh evidence on trails and keep track of the waste, Letters may be edited for length fracking.” cost overruns and whose pockets and clarity. The author of the article states, Financial news that pleases are being lined until the jobs are Write: Editor, Crain’s Detroit “Unlike vertical drilling, fracking finished (“M1 Rail bids ready to Business, 1155 Gratiot Ave., involves high-pressure blasts of Fortunately, Detroit’s municipal finance woes are not the leave the station,” May 13, Page 1). Detroit, MI 48207-2997. sand and water to release gas or I say this because the $85 million only story this week. Two pieces of good news: Email: [email protected] oil.” Ⅲ Esperion Inc. and Compuware Corp. unit Covisint filed to construct this street-level People Please see the following state- Mover could be put to much better registration papers for initial public offerings. Covisint’s IPO ment from the EPA’s website: use in updating and expanding the and then move the waiting shel- “Fluids, commonly made up of wa- would be the first by a local tech company since 1996. IPO fil- SMART bus system. For the money ters. Try changing a rail system ter and chemical additives, are ings have been few and far between. that will be spent, they could install for the same cost and in the same pumped into a geologic formation Ⅲ And as Tom Henderson reports on Page 3, venture capital all new waiting shelters along the amount of time. at high pressure during hydraulic activity was up in Michigan last year, even though it was con- routes while upgrading their buses, I know it’s too late to do any- fracturing.” as well as expanding the amount of thing, but all these points were tracting most other places. The result: a ranking of 15th, up The author of the Crain’s article buses they currently run to shorten made during the debates on this failed to mention chemical addi- from 25th, the biggest jump of any state. That’s still a long way waiting times. system, and I just would like peo- tives at all. If the author encour- from California levels, but VC investment is increasingly find- Should there be demographic ple to keep track of all the non- ages us to look at the evidence, ing Michigan to be more fertile ground for promising compa- shifts in populations, a bus system sense that is about to start as those then let’s not forget about the nies. can be changed without much cost on the inside start to benefit from chemicals used in the fracking and time, since the existing road The bottom line: Outside investment in Michigan compa- this “much needed 3.3-mile loop.” process as well. systems are its “rails” and you Jeffrey Scott Diane Delaney nies can help the state build a healthier economy. merely need to change the routes Troy Plymouth KEITH CRAIN: It is still the most important activity Last week, I was fortunate to during these gradua- be able to continue ing education, and we’ve only re- have come up with an answer. participate in the graduation of tion ceremonies that those efforts. cently started to move the needle When Washington, D.C., got on the College for Creative Studies, a education is so very im- We have to have a slightly. It is a very long process what many thought was the right school that I have been involved portant. We’ve been commitment for public and requires a constant commit- path, a new administration fired with for many years. talking about how im- education if we ever ex- ment that is almost impossible to the school superintendent and As always, it is the best day of portant it is in Detroit pect to see Detroit have sustain. started over. There simply isn’t the year for the school, the facul- for decades, and it was the kind of recovery It is almost as if we simply the resolve to continue forever ty, the students and their parents. then and it is now far that we are all hoping don’t have the fortitude to stay what has to be done. Next month, there will be the first and away the most im- for in the near- and the course. It is not a journey of a Watching graduation makes you graduation of the Charter School portant aspect of any long-term future. decade or a couple. It requires realize how important education is within the college, sixth through public policy. We have been talking generations of commitment. Most on every level, whether it’s K-12 or 12th grades. It’s a wonderful Roy Roberts has about fixing education of us don’t have that kind of re- higher education. school made possible by the good made a noble effort in for decades. There have solve. Everyone knows we need the works of my friend Bob Thomp- trying to right the public educa- been countless committees and Cities all over the country are commitment. Not everyone is will- son. tion of the city of Detroit. I only studies over the years. Billions of facing the same challenges. And to ing to commit for the next hundred But it became very obvious hope his eventual successor will dollars have been spent on improv- the best of my knowledge, none years. 20130520-NEWS--0008,0009-NAT-CCI-CD_-- 5/17/2013 12:36 PM Page 2

May 20, 2013 CRAIN’S DETROIT BUSINESS Page 9 MARY KRAMER: Lean in? Women also need to negotiate

“Lean in,” Sheryl Sandberg ad- office managing part- she said. “If you want women partners. ployees. vises in her book by that title ner for KPMG in down- (gender) differences to She also chaired Athena Inter- In the end, she said, “there is a about women, work and leader- town Detroit. be removed, you have national for two years; the pro- war for talent. When we bring di- ship. Sandberg, the COO of Face- “I had a mentor in to opt in and make a gram offers opportunities to honor verse members of our team to cam- book, touched off a debate this the firm who suggested difference. It is hard to women’s leadership and high- pus, we are able to recruit more di- year by suggesting, among other that I communicate my change leadership in lights eight tenets of leadership. A versity … with clients, if you show things, that women talk them- willingness to move,” organizations if you career highlight: earning the na- up with an all-male team and there selves out of many opportunities. Paquette told me. She are just looking up.” tional Athena award in 2012 and are women on the client side of the Lean into your work, she recom- did that, even before Paquette served in having her mother, who won the table, our connection may not be mends. Assert yourself. Be heard. the Detroit opportunity the U.S. Air Force, end- Athena award in 1987 in Rockford, there.” Sudip Datta and Mai Iskandar- arose. ing with a stint work- Ill., attend the ceremony. Datta have one additional piece of Paquette read Sand- ing for NATO in Italy Diversity is not just a personal Mary Kramer is publisher of advice: Learn to negotiate. Women berg’s book. She said before earning a degree issue for her; it is a competitive Crain's Detroit Business. Catch her — even women in finance who are some of Sandberg’s ob- in accounting and join- business advantage. The Detroit take on business news at 6:10 a.m. comfortable with numbers — seem servations and conclusions res- ing KPMG. She has served on the office has a formal mentorship Mondays on the Paul W. Smith show to be lousy negotiators. onated with her; others did not. nominating committee for her program and four “affinity” on WJR AM 760 and in her blog at The Dattas, a husband-and-wife Leaning in is one. “I have al- company’s 15-member board of di- groups for women, Latino, www.crainsdetroit.com/kramer. academic power couple in the ways felt you opt into leadership,” rectors, which now has four African-American and Asian em- E-mail her at [email protected]. School of Business Administration at Wayne State University, conducted research of nearly 1,600 CFOs in U.S. publicly traded companies between 1994 and 2007. Col- lecting information on education and controlling for that and industry and company performance variables, they found CFOs — men and women — were hired at com- parable salaries. But within five years, there was a 5 percent compensation gap. Why? Two factors, said Sudip Datta. “They take women for granted.” Women were viewed as less likely to jump ship and move The name is new. to other opportunities, probably for family reasons. Second, women were less likely than men to negotiate better compensation pack- ages over the years. Their study, with co-author Ab- The trusted partnership hijit Guha, was published in the May issue of the Harvard Business Review. The summary includes advice to women, including compiling competitive compensation with our clients stays data to bring to the board’s compensation committee. Another tip: “Move — or at least demonstrate you are willing to.” the same. That suggestion resonates with Heather Paquette, who moved 18 months ago from Chicago to be the

TALK ON THE WEB We understand the personal service, attention, and Reader responses to stories and blogs that appeared on Crain’s integrity you’ve come to expect from your bank. As a result website. Comments may be edited for length and clarity. of putting our customers ﬁrst for over one hundred years, we fully understand how to live up to those expectations. Re: Orr: ‘We are going to start And we’ll continue to prove it to you, each and every day. running a little bit faster now’ Many people in the city of De- troit don’t understand that Orr and Snyder are like two lifeguards trying to save a foolish swimmer who is drowning in a sea of debt and fiscal mismanagement. Unfortunately, the riptide of reality might be too strong to save the reckless swimmer. overtaxed citizen HAS BECOME Re: State budget: $483M surprise If the surplus must be spent (as PERSONAL BUSINESS COMMERCIAL PRIVATEBANK opposed to saved), I’d like to see it spent on much-needed road repair and/or developing new businesses TO LEARN MORE, CONTACT: (and resultant jobs) in the state. FirstMerit.com/MeetUs How about a direct small-business David Lochner, President, Michigan loan fund with reasonable criteria, at 248-324-8555 or david.lochner@ﬁrstmerit.com. so good, capable people can start businesses without having to jump Member FDIC through impossible hoops? 1399_FM13 Mark Cory DBpageAD_DBpageAD.qxd 5/16/2013 9:51 AM Page 1

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May 20, 2013 CRAIN’S DETROIT BUSINESS Page 11

growing small businesses

NOTEBOOK State program has biz services for the taking A state-run economic gardening program to encourage Michigan businesses to support one another has 14,000 hours of free business services ready for the taking. The Michigan Economic Development Corp., through its wide- ranging Pure Michigan Business Connect program, has signed up nearly 30 companies willing to give pro bono work in areas such as legal, accounting, Web development, graphic design and human resources to small businesses. The MEDC hasn’t delineated any business-size or industry limits, but it does do some “matchmaking” ahead of time to make sure businesses fit with providers and that the applying businesses don’t already have JOHN SOBCZAK vendors for the When Maria Silamianos Sherman and Craig Sherman made Omega Solutions LLC a national player in human resources services, business service they also had to rely less on rugged invidualism and more on internal structure, processes and people with specialized talents. in question, said Nystrom Vince Nystrom,

vice president of strategic accounts at ISTOCK PHOTO MEDC. Providers typically sign up for a five-year commitment, offering a set amount of pro bono hours each year during that period. Varnum LLP in Grand Rapids, for example, has set aside 250 hours a year for its five-year WHEN SUCCESS commitment. A list of providers can be found at michiganadvantage.org/Business- Connect. The program is meant to benefit providers, too, who stand to gain new clients among growing small businesses. NEEDS STRUCTURE Only about 1,000 hours of nearly 15,000 committed hours have been called for by small businesses so far. Going national forced Omega to revamp culture, processes Businesses can apply at puremichiganb2b.com. BY GARY ANGLEBRANDT benefits and other tasks for about 10,000 The opportunity Also at that site is the state’s new SPECIAL TO CRAIN’S DETROIT BUSINESS client workers. B2B network that tries to get small When it saw the chance to take on a large Married couple President Maria Silami- Michigan companies into the classic challenge to growing national customer, it jumped on it. But it anos Sherman and CEO Craig Sherman purchasing pipelines of larger a second-stage business is meant dealing in short order with the bu- founded Omega in 1999, taking advantage of Michigan companies. Examples Maria’s 30 years’ experience in the insur- include DTE Energy Co., Johnson professionalizing the work- reaucracies of many states. It also meant get- ting serious about its internal structure and ance industry and Craig’s background as a Controls Inc. force. A what kinds of employees it had. lawyer and business consultant. The site launched as a pilot in That means forming departments out of Setting up structures and processes, and In 2006, they took on their biggest cus- November and has been rolling out tomer to date, a publicly traded company more fully in the past few weeks. In the many tasks previously handled by enter- finding people to fill spe- that stocks products on grocery store addition, the Connection Point prising bootstrapper employees — or the cialized roles, is the in- shelves. At the time, Omega’s customers program to match Michigan founders themselves. It also can mean hav- evitable second-stage businesses with larger out-of-state ing to go on the hunt for specialized talent dilemma, said Dino Sig- mostly were automotive suppliers in Michi- companies, started by the Detroit outside the enterprise for the first time. nore, program develop- gan, with others in the home health care, Regional Chamber, was folded into That’s what Omega Solutions LLC in Troy ment manager at the Ed- trucking and food and beverage industries. Pure Michigan Business Connect this had to do after embarking on a company- ward Lowe Foundation, a The client, which Omega declined to dis- year, broadening the field of large culture altering plan to go national. nonprofit that researches close because of its confidentiality agree- buyers to companies beyond Omega, now reporting more than $15 mil- second-stage business is- ments, needed Omega to be able to operate in Michigan. As part of the procurement lion in annual revenue, is a human re- sues. This goes against the all 50 states. More than 20 states have special push, the MEDC has been holding sources services business. It’s known as a grain of many wild-eyed licensing requirements that professional em- events bringing together one large professional employer organization or hu- Signore entrepreneurs who love ployer organizations like Omega must meet corporate buyer with suppliers vetted man resources outsourcing service, depend- chasing the big sale but overlook the opera- in order to do business. by the MEDC. The MEDC plans to hold ing on the prevailing industry jargon. tional consequences. “We had all of three or four months to get these events every month. Omega acts as the HR department for its “They think of that last: How am I going to licensed, set up and registered in all of the – Gary Anglebrandt business customers, handling payroll, taxes, operationalize all this capacity?” Signore said. See Structure, Page 12 20130520-NEWS--0012-NAT-CCI-CD_-- 5/17/2013 10:26 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS May 20, 2013 The firm worth Second Stage listening to Structure: Even pros need procedures ■ From Page 11 is the firm that states,” Craig said. “A couple of The payoff months would probably be a nice SM amount of time for one state. We Now there’s so When looking for a sign that a listens to you. had to do 20.” “ business decision to change a com- For some states, it was as simple much more volume, pany’s operating methods has paid as cutting a check and signing a off, it’s hard to beat a machine that document, said Director of Finance if you don’t have set spits out checks. SM Anthony Falzone. In others, it was One of the signs that Omega’s Talk to Foley. We’re listening. a little harder: audited financial procedures for each gambit was working came when it statements, quarterly reviews and had to buy a machine that prints bonds were demanded. One state thing ... little and seals checks for mailing. The sent back Omega’s application to number of checks going out had When our Detroit clients needed a national law firm operate as a PEO because the com- mistakes become big become too high to handle using that provides trusted local advisors with top-tier legal pany had listed some points in nu- the old methods. merical order instead of the state- problems. “When we printed our clients’ skills, Foley delivered. That’s why our attorneys and required alphabetical order. ” payroll checks, we would have a practices are consistently recognized for excellence Florida, an important state, was Craig Sherman, Omega Solutions LLC designated person who would seal all the checks by hand with a glue especially challenging. After sub- agers of a second-stage company, by our clients and industry experts.* stick,” Falzone said. “That wasn’t mitting the paperwork, Omega they no longer could do that. going to work with thousands and called to check if everything had “We’ve had to seek out particu- Learn more about how Foley can add value to your business. Contact thousands of checks.” been submitted properly and it lar talent and bring them in,” Omega’s annual revenue before Detroit Office Managing Partner Daljit S. Doogal at [email protected]. could proceed with business. Maria said. the move to go national was about “They laughed at us. They said, It also meant going through the $5 million 2006. In 2011, it was $14 ‘No, you don’t do business in our painful phase of altering the work- million; and last year, the compa- Foley.com state until we approve you’ — at a force to match the new culture and ny brought in $15.5 million. Be- quarterly meeting,” Craig said. goals. Some people from the early fore, the company had about 40 They got around the problem by days are still with the company, clients; now it has 250. And the in- redefining it, or more precisely, re- but others had to be let go. ternal employee count is up to 30, defining Omega. By recasting “The type of people that worked from about six before. Omega as a business that only han- well in a very small entrepreneurial ® “Omega to the best of my knowl- *Chambers USA: America’s Leading Business LawyersBOE64/FXTo#FTU-BXZFST dles payroll, it avoided PEO licens- type of company aren’t necessarily edge has a pretty good name. It’s a ing requirements. Omega limited the best fit for more of a structured solid mainstream company,” said its services in Florida to payroll, a type company,” Craig said. #0450/t#3644&-4t$)*$"(0t%&530*5t+"$,40/7*--&t-04"/(&-&4 service that didn’t require licens- Paul Connors, managing director Omega began hiring from with- ."%*40/t.*".*t.*-8"6,&&t/&8:03,t03-"/%0t4"$3".&/50 ing, and that bought more time to of Rochester Hills-based Human Cap- 4"/%*&(0t4"/%*&(0%&-."3t4"/'3"/$*4$0t4)"/()"*t4*-*$0/7"--&: in the industry, such as a person to ital LLC, which has a staff of about 25 5"--")"44&&t5".1"t50,:0t8"4)*/(50/ %$ meet the PEO requirements. handle multistate tax compliance employees performing human re- ª'PMFZ-BSEOFS--1t"UUPSOFZ"EWFSUJTFNFOUt1SJPSSFTVMUTEPOPUHVBSBOUFFBTJNJMBSPVUDPNF Sherman estimated the total cost who came from another PEO, as /$MBSL4USFFU 4VJUF $IJDBHP *-tt sources services for clients. to do the paperwork alone for all the well as from other industries, such states was $50,000. Omega also need- as an HR manager who came from His company is taking a differ- ed to develop an IT system to handle the construction industry. ent growth strategy. He said a the client’s national footprint. It One nice thing about the reces- wave of regulations, many of them hired an outside firm to build one. sion, which began during Omega’s related to health care reform, is go- Sherman estimated the cost to de- transition, was that it made it easi- ing to bring about an urgent need velop and continue improving that er to find talent as some PEOs went for human resources management system since at $150,000. out of business or were acquired. consulting services. PEOs would Omega pulled it off, and the big HR, finance, benefits, payroll be advised to get into this line of client remains a customer today. and sales marketing departments business, he said. came into existence over the next “That’s what we saw about a The transition three years. year ago, and we changed our busi- “We’re a human resources com- ness model. That’s where the need The work was far from over, pany. I don’t think we had a direc- is. Companies that want to hang though. All of this effort left tor of HR until ’09. Now we have an onto the old PEO model ... it’s not Omega with a national presence HR department with five full-time enough anymore,” Connors said. and an IT system to support it. people,” Craig said. Human Capital serves clients in Why not make the most of it? The Signore at Edward Lowe said 32 states and is a division of Kala- company had the platform to pick that when a company hits the 10- mazoo-based Trillium Staffing Solu- up more customers in different to-15 employee level, “it’s like a tions, which operates staffing and states and industries, so it decided switch comes on. Now they’ve got HR services throughout the coun- to go after them. to deal with an emerging social try. Connors said Omega was right The Shermans began hitting system. All the human dynamics to go national, and those that trade shows and launched an email come into play.” haven’t done so by now face a marketing campaign. Omega Case in point: Omega didn’t hire tough road ahead. Working Capital In Action picked up another national client its first department manager until Signore at Edward Lowe said about a year later and now has 2010, Craig said. he’s heard stories like Omega’s about 12 clients of size similar to Establishing official procedures hundreds of times. Procedural sys- We provide businesses accounts receivable and inventory financing that first large one. Local clients in- and documentation to go with each tems like Omega put in place are needed to address growth opportunities and increase cash flow. clude Eclipse Mold Inc. in Clinton job or new department was central slow to be accepted by many entre- Township and the Macomb County to the big adjustment. The Sher- preneurs. Conversely, one of the Our experienced staff and network resources connect Chamber of Commerce. mans had their employees write dangers later on is becoming too entrepreneurs with the tools they need to succeed and expand. Early into managing this growth, down exactly what their jobs were attached to those systems — the Omega’s sides began to creak, and how they did them. entrepreneurial spirit should not mainly related to its own staffing. It Following set procedures might be extinguished. Need Cash to Grow? We Have the Solution. needed to scale up to match its new not be as fun as the seat-of-the- “It’s the entrepreneur’s para- national scope, a reality the Sher- pants startup days, but they are dox,” he said. mans were slow to accept. critical, Craig said. Looking forward, Omega will “We still tried to operate the “Now there’s so much more vol- continue bringing in outside tal- same way we always had. Our staff ume, if you don’t have set proce- ent. The company could use a di- grew by maybe a person or two, dures for each thing ... little mis- rector of operations, Craig said. but it was relatively small, still a takes become big problems. As you But the systems now in place are very entrepreneurial model. grow, you have to have written, doc- scalable and set the table for more (Maria and I) still handled a lot — umented procedures, and everyone growth, Craig said. Omega has no very hands-on. That obviously has to follow the same rules.” debt and could use acquisitions to needed to change,” Craig said. Craig said his background in con- increase its size, possibly this year. Maria said that in the compa- sulting on quality management “We feel like we can get to the ny’s earlier years, she and Craig standards such as ISO-9000 and QS- ($25 million) range without having 248.658.1100 HennesseyCap.com liked to hire from within the com- 9000 helped in creating new sys- to add major investment over the pany; entry-level people worked tems. Omega also relied on its rela- next five years,” Craig said. “If we their way up and into tasks for tionships with outside accountants do it through an acquisition, we which they were suited. As man- and lawyers to grow the business. can do it overnight.” 20130520-NEWS--0013,0014-NAT-CCI-CD_-- 5/17/2013 10:28 AM Page 1

May 20, 2013 CRAIN’S DETROIT BUSINESS Page 13 Second Stage Michigan-Brazil Center helps smaller companies expand markets

BY AMY HAIMERL That was appealing to Abusam- United States and Brazil — and CRAIN’S DETROIT BUSINESS ra, so he joined the MBC’s first tri- these devices give patients on-de- We didn’t want to shut out al class of six companies in sum- mand oxygen therapy. Michigan likes trading with “ mer 2012. He had experience with People suffering from these ill- Brazil. Area businesses exported companies that are smaller that foreign markets — 25 percent of nesses typically have to trail oxy- nearly $700 million worth of goods Rochester Hills-based Oxus Inc. gen tanks behind them as they try and materials to Brazil in 2012, would like to expand. came from exports in 2012 — but to stay active and maintain their making the Latin American coun- ” Brazil would be a challenge com- lifestyles. But they can only stay try Michigan’s eighth-largest trad- Jeff Jorge, Global Development Partners pared with other regions because out for as long their tanks last. An- ing partner. the country does not accept U.S. other solution is the mobile oxy- So when Gary Abusamra was FDA certifications for medical de- gen machines manufactured by looking for the next market for his seeking to expand globally, offer- and works with them simultane- vices. Oxus. The portable devices, which medical devices firm, Oxus Inc., he ing everything from risk assess- ously. That team approach offers “Going into some place like weigh 10 pounds, filter out nitro- targeted Latin America’s largest ment to negotiating deals. significant cost savings: A firm Brazil, it is very important to have gen from ambient air to deliver economy, which the International “We essentially turn on the working with the MBC’s classes local partners who understand the highly concentrated oxygen on de- Monetary Fund predicts will grow lights in the market and give our would pay approximately $10,000, by 3 percent this year. clients the keys,” said Jorge, 38. which is a fraction of GDPs’ rates. process,” Abusamra said. “The dif- mand. “Export is a big priority for us, Since opening in 2006, GDP has “GDP is a fully custom program, ference with Europe is that we had “Our product is a replacement and we’ve been pushing into South seen 40 percent growth, and its 10 but we didn’t want to shut out com- to submit data, but we didn’t have for bottled oxygen,” Abusamra America and Brazil because it is a employees have assisted more panies that are smaller that would to go through a specific approval said. “It operates on a battery or growing market,” said Abusamra, than 200 companies with entering like to expand,” Jorge said. “So we process.” wall power or power in your vehi- 50. foreign markets. Jorge, however, kept thinking we could do even The challenge was worth it, cle. You can travel and stay out in- To smooth the way, Abusamra also wanted to help smaller compa- more if we created a leverage-buy however, because the home of the definitely as long as you have ac- turned to Jeff Jorge and the newly nies, ones that might not be able to program. With MBC, they have a samba is a growing market for the cess to power.” formed Michigan-Brazil Center & Sup- afford GDP’s one-on-one consult- predefined number of services; portable oxygen machines that Oxus is now working with a port Office. ing fees. they know they can only spend X Oxus manufactures. The rate of Brazilian partner to earn the nec- Jorge, a native of Brazil, is the So he started the Michigan- dollars and how many items will chronic breathing disorders, such essary approvals for the machines executive partner of Royal Oak- Brazil Center & Support Office, be included in their market re- as emphysema and chronic bron- and identify a local manufacturer based Global Development Partners which offers a fixed price menu of search, how many competitors, chitis, are on the rise — they’re the Inc., which consults with clients GDP’s services to a group of firms etc.” third-leading cause of death in the See Brazil, Page 14

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Page 14 CRAIN’S DETROIT BUSINESS May 20, 2013 Need a Brazil: UPCOMING Expand PARTNER EVENTS New Bank? ■ From Page 13 and distributor. It hopes to be selling its product there within the 2013Crain’s partners with a variety of next six months. organizations on events and “We’ve used the market research and the MBC helped us find special subscription offers for their members. the right channel partner,” Please visit their websites below. Abusamra said. “As a small company without the resources that a large company would typically have to put their own facilities in Greater Detroit Area Health Council place, working on a shared-service presents Coffee and Controversy: “Specialty model has been beneficial.” Pharmaceuticals: Trends, Value and Impact” Oxus is not the only member of SPONSOR: Sanofi . SPEAKERS: Atheer Kaddis, Vice the trial Michigan-Brazil Center President of Managed Markets, Diplomat Pharmacy; group to find success; almost 80 Steven Marciniak, AVP Pharmacy, Priority Health; percent of the firms are going for- Marcy Donato, PharmD, RPh, Coordinator, Oncology ward with their plans, Jorge said. Services, Henry Ford Health System Let ours compete for Much of that success is based on creating familiarity with new cul- June 5 • 7:30 a.m. – 9:30 a.m. tures and languages, Jorge said. Hospice of Michigan, 400 Mack Ave, Detroit your business. And in Brazil, he is a natural: GDAHC members: $25, non-members: $35 Loan amounts: $1,000,000.00 and above. Jorge got his first job in interna- Register at www.gdahc.org tional business when he was just s Investment Real Estate s Accounts Receivable 16. s Owner Occupied Real Estate s Equipment “Language and culture really do Troy Chamber Tee Off FORE Troy Golf Outing s Lines of Credit s Bank Workouts matter,” he said. “Relationships $1,280 per Featured Foursome includes: are so important to launching the • Running caddy right alliances, and we have found • Signage at one hole that is the first thing companies • Hot lunch with carving station starting at 11 a.m. stumble on. They may go on a • 18 holes of golf plus cart on a private course trade mission, but then things fiz- • Beautiful views and snacks on the course zle because they are not equipped • Networking reception with light hors d’oeuvres 800.509.3552 to nurture the relationship in a • Two drink tickets to be used on the course www.eclipsecapitalgroup.com culturally and linguistically rele- and two at the reception 2207 Orchard Lake Road, West Bloomfield, MI 48320 vant way.” • Each golfer in the winning foursome receives a “Since 1997” The Michigan-Brazil Center is trophy & a gift certifi cate now accepting applications for its A golf package (minus the caddy and signage) first official “LaunchPad.” There may be purchased for $850 per foursome. are 30 spots available, and applica- June 10 • 11 a.m.: lunch 12:30 p.m.: Tee Off FORE Troy Shotgun Start tions are due June 30. The organi- Great Oaks Country Club, 777 Great Oaks Blvd. zation is ideally seeking Michigan Rochester, MI. To register your foursome, contact companies seeking to export — the Troy Chamber at 248-641-8151 or email goods or services — rather than [email protected]. offshore. “We advocate export because we’re big on keeping jobs and building jobs in the United States,” The Southfi eld Area Chamber of Commerce Jorge said. “So we like to work is pleased to present the 2013 Annual Chamber with companies to keep as much Golf Outing manufacturing as possible in the June 24 • Plum Hollow Country Club U.S. Occasionally a company has 10:30 a.m. – Golfer Registration to do some finishing work inside 11 a.m. – Lunch the local market to stay competi- 12:30 p.m. – Shotgun Start tive or to meet regulatory require- 5 p.m. – Afterglow ments, but in all, the vast majority Registration & Sponsorship Information at of work is kept here in Michigan.” www.southfi eldchamber.com/golfouting The timing of the Michigan- Brazil Center’s first class is also fortuitous: Michigan Lt. Gov. Bri- Oakland Chamber Network Regional Mixer an Calley returned from a trade June 26 • 6 p.m. – 8 p.m. • Park West Gallery mission to Brazil on May 18. 29469 Northwestern Hwy., Southfi eld “Michigan’s ties with Brazilian Chamber members: $10 in advance/$15 at the-door. companies have resulted in good Non-chamber members: $25 per person jobs here, and we look forward to Register at www.southfi eldchamber.com/ocnmixer further strengthening these relationships,” Calley said. Amy Haimerl: (313) 446-0416, [email protected], Twitter: MSED Summer Event @haimerlad 21st Annual Marketing & Sales Professionals’ Golf Outing to Benefi t MSED Scholarships This is a great event! Golf at a beautiful course, network with marketing and sales professionals from our community AND make an important Michigan’s ties contribution to the future of our profession through “ scholarships funded from the proceeds. with Brazilian Aug. 15 • Noon – 7:30 p.m. Twin Lakes Golf Club, Oakland Twp. companies have • Individual golfer: $165 • Foursome: $600 resulted in good jobs • Corporate foursome: $750, includes foursome, hole sponsorship and signage here. Sponsorships available from $200-$5,000 ” For additional information and to register, please Lt. Gov. Brian Calley go to www.msedetroit.org or call Meeting Coordinators at (248) 643-6590. 20130520-NEWS--0015-NAT-CCI-CD_-- 5/17/2013 10:51 AM Page 1

May 20, 2013 CRAIN’S DETROIT BUSINESS Page 15 State budget deadline nears; has missing pieces, unexpected money IN MEMORIAM

BY CHRIS GAUTZ more money was available, calls tion and Affordable Care Act for CAPITOL CORRESPONDENT came from every corner on how to those up to 133 percent of the fed- Jerry D. Luptak spend it. eral poverty limit — was already State lawmakers have six work- “Everybody wants to know, going to be a tough sell in the Leg- June 12, 1922 – May 7, 2013 ing days to complete the state bud- ‘Hey, if there’s more money, what islature. get before their self-imposed June do we do with it?’ ” Gov. Rick Sny- That is now taking longer as 1 deadline. And it appears that der said last week while in Detroit House Republicans have said they “With deep sadness, but with some of the biggest pieces of the speaking to the Michigan Hispanic oppose Snyder’s plan and have puzzle — namely, Medicaid expan- Chamber of Commerce. spent their time recently taking great gratitude for achievements sion and increased transportation Democrats said the money testimony on their expansion and past times shared, the funding — will not make it into the should provide tax relief to middle- plan that would limit to four years partners, colleagues, associates final product. class families, increase invest- the time that an able-bodied adult Adding to the complexity of fin- ments in education and provide can receive Medicaid assistance. and team members mourn the ishing the bud- more funding to municipalities. Snyder and Democrats have ex- loss of our co-founder get was the Nixon said a great place to spend pressed skepticism over the pro- news last week one-time money is on construction posal, including whether the feder- and partner.” that the state projects to improve roads and al government would ever grant a has $482.6 mil- bridges. What the state will not do, waiver to allow such a plan to be lion more in the he said, is build this increased rev- used in Michigan. budget than ex- enue into the base budget like oth- And also hanging over the bud- pected that can er states often do, then find they get process in these final days is the be spent. That have a shortfall the next year presence of the Mackinac Policy Con- news came from when these one-time funds don’t ference, which takes place at the the consensus materialize again. end of the month. Nixon revenue-esti- Ari Adler, press secretary for Several lawmakers plan to at- mating conference, made up of the House Speaker Jase Bolger, R-Mar- tend, but Adler said Bolger is com- THE BEZTAK COMPANY heads of the Senate and House fis- shall, said it is unlikely at this mitted to finishing the budget by cal agencies, state Treasurer point that a long-term solution for June 1. REAL ESTATE ACQUISITON, Andy Dillon and state budget Di- raising $1.2 billion more for roads And “more than likely” that will rector John Nixon. annually, as Snyder wants, will mean members of the Legislature DEVELOPMENT, CONSTRUCTION The surge in one-time funds is make it into the budget they plan to will be in Lansing while the con- AND MANAGEMENT largely due to concerns about the complete by the end of the month. ference is going on. fiscal cliff last year. Individuals “We will have some short-term “I know there are people that Farmington Hills, Michigan feared higher tax rates were on transportation funding solutions want to go to that,” Adler said, the horizon and accelerated their in the budget,” Adler said. “but we have a job to do and that is income and took their capital Approving the Medicaid expan- our focus.” gains at the end of 2012, Nixon sion plan that Snyder wants — by Chris Gautz: (517) 403-4403, said. accepting federal funds as out- [email protected]. Twitter: And as soon as word came that lined in the federal Patient Protec- @chrisgautz

Ralco Industries plans new Auburn Hills HQ Ralco Industries Inc. has submit- Ralco, established in 1970, sup- ted plans to build a new 125,000- plies welded assemblies and metal square-foot world headquarters stampings and offers product de- and manufacturing facility in sign and prototype services. It Auburn Hills. The total invest- moved into its current 50,000- ment is $13.5 million. square-foot facility in 1986. The facility will be built on 18.8 The company employs 85; with acres along the north side of Tay- the expanded headquarters, Ralco lor Road east of Giddings Road. It will add 20-70 employees, said Ral- will replace the current facility at co President Jim Piper. 2720 Auburn Court. — Kristin Bull

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Page 16 CRAIN’S DETROIT BUSINESS May 20, 2013 CELEBRATE THE 45TH ANNIVERSARY OF THE 1968 WORLD SERIES CHAMPIONS CRAIN'S LIST: LARGEST DIVISIONS, AFFILIATES AND SUBSIDIARIES Ranked by 2012 revenue at Parent company Company Revenue revenue Address ($000,000) Parent ($000,000) Rank Phone; website Top local executive(s) 2012/2011 company 2012/2011 Johnson Controls - Automotive Beda Bolzenius $21,334.0 Johnson Controls Inc. $41,955.0 6$785'$<0$<ë JUNE 28 – 30, 20I3 vice president and president, $20,065.0 Milwaukee $40,800.0 Experience automotive seating 6SHFLDOSUHJDPHRQILHOGFHUHPRQ\ë 1. 49200 Halyard Drive, Plymouth 48170 William Jackson (734) 254-5000; www.johnsoncontrols.com vice president, operations and 3OD\HUVVFKHGXOHGWRDSSHDU innovation and president, automotive electronics and interiors Wayne Comer, John Hiller, Al Kaline, Mickey Lolich, Tom Matchick, Denny McLain, Hal Naragon, Continental Automotive Systems Samir Salman 10,734.8 B Continental AG 43,260.2 B CEO, Continental North America B Hannover, Germany B Daryl Patterson, Jim Price, Mickey Stanley, Dick Tracewski, Jon Warden, Don Wert 2. U.S. Inc. 8,800.0 39,499.3 1 Continental Drive, Auburn Hills 48326 *Players subject to change (248) 393-5300; www.conti-online.com Robert Bosch LLC Mike Mansuetti 10,600.0 Robert Bosch GmbH 67,500.0 3. 38000 Hills Tech Drive, Farmington Hills 48331 president 9,800.0 Stuttgart, Germany 71,700.0 (248) 876-1000; www.boschusa.com Denso International America Inc. Hikaru "Howard" Sugi 6,800.0 Denso Corp. 38,100.0 4. 24777 Denso Drive, Southfield 48033 president and CEO 6,200.0 Kariya, Aichi, Japan 40,060.0 (248) 350-7500; www.densocorp-na.com Faurecia North America Michael Heneka 6,000.0 Peugeot SA 22,946.8 B 5. 2500 Executive Hills Blvd., Auburn Hills 48326 president, North America 4,800.0 Paris, France 20,963.9 B (248) 409-3500; www.faurecia.com Mobis North America Ho-seok Jeon 5,315.0 Hyundai Mobis 17,769.0 6. 23255 Commerce Drive, Farmington Hills 48335 president and CEO 4,285.0 Seoul, South Korea 15,151.0 (248) 426-5577; www.mobis.co.kr GKN Driveline North America Inc. Robert Willig 5,113.0 GKN PLC 10,908.0 7. 3300 University Drive, Auburn Hills 48326 president, GKN Driveline Americas 4,745.0 Worcestershire, 7,382.9 (248) 377-1200; www.gknplc.com England General Dynamics Land Systems Gary Whited 4,924.0 B General Dynamics 31,513.0 8. 38500 Mound Road, Sterling Heights 48310 president 4,912.0 B Corp. 32,677.0 (586) 825-4000; www.gdls.com Falls Church, Va. ZF North America Inc. Julio Caspari 4,310.0 ZF Friedrichshafen AG 22,912.7 9. 15811 Centennial Drive, Northville 48168 president 2,679.0 Friedrichshafen, 20,081.8 (734) 416-6200; www.zf.com Germany Aisin World Corp. of America Masayasu "Mike" Saito 4,247.0 Aisin Seiki Co. Ltd. 31,446.0 First 10,000 fans receive a 1968 45th Anniversary 10. 46501 Commerce Center Drive, Plymouth 48170 president and CEO 3,432.0 Kariya, Aichi, Japan 28,430.0 (734) 453-5551; www.aisinworld.com Commemorative Coin courtesy of Yazaki North America Inc. Masashi Yamashita 3,503.0 Yazaki Corp. 15,800.0 11. 6801 Haggerty Road, Canton Township 48187 chairman 3,050.0 Tokyo 13,931.0 (734) 983-1000; www.yazaki-na.com Amcor Rigid Plastics USA Inc. Michael Schmitt 3,418.5 Amcor Ltd. 12,386.8 12. 935 Technology Drive, Suite 100, Ann Arbor president 3,295.1 Hawthorn, Australia 13,151.0 48108 (734) 428-9741; www.amcor.com Autoliv Americas Group Steve Fredin 2,870.0 Autoliv Inc. 8,267.0 13. 1320 Pacific Drive, Auburn Hills 48326 president, Autoliv Americas 2,559.0 Stockholm, Sweden 8,232.0 (248) 475-9000; www.autoliv.com Valeo Inc. Francoise Colpron 2,240.0 Valeo S.A. 15,200.0 14. 150 Stephenson Highway, Troy 48083 president, North America 1,897.0 Paris 15,600.0 (248) 619-8300; www.valeo.com TK Holdings Inc. Robert Fisher 2,170.0 Takata Corp. 4,651.5 B 15. 2500 Takata Drive, Auburn Hills 48326 president 1,963.0 Toyko 4,716.7 B (248) 373-8040; www.takata.com Severstal Dearborn LLC Sergei Kuznetsov 2,143.0 OAO Severstal 14,103.7 16. 14661 Rotunda Drive, P.O. Box 1699, Dearborn CEO 3,422.1 Cherepovets, Russia 15,812.4 48120-1699 (800) 532-8857; www.severstalna.com Detroit Medical Center Rodney Huebbers 1,957.2 B Vanguard Health 5,949.0 17. 3990 John R, Detroit 48201 president and COO 1,995.8 B Systems 4,895.9 (313) 578-2442; www.dmc.org Nashville, Tenn. Mahle Industries Inc. Roland Zitt 1,618.0 MAHLE GmbH 7,900.0 Contact Us Today! 18. 23030 Mahle Drive, Farmington Hills 48335 president 1,442.9 Stuttgart, Germany 8,300.0 PO Box 10 (248) 305-8200; http://www.us.mahle.com Hartland, MI 48353 CalsonicKansei North America Inc. Seiichi Kakizawa 1,453.1 B CalsonicKansei Corp. 8,072.6 19. 27000 Hills Tech Court, Farmington Hills 48331 president 2,074.0 C Tokyo, Japan 9,507.4 (517) 897-3819 (248) 848-4800; www.calsonic.com (888) 9-MI-HVAC Brose North America Inc. John Dunn 1,300.0 Brose Fahrzeugteile NA 20. 3933 Automation Ave., Auburn Hills 48326 president 1,000.0 GmbH & Co. KG 5,000.0 (248) 339-4000; www.brose.com Coburg Toyoda Gosei North America Corp. Toru Koyama 1,215.4 B Toyoda Gosei Co., NA 21. 1400 Stephenson Highway, Troy 48083 president 1,180.0 Ltd. 6,387.0 (248) 280-2100; www.toyodagosei.com Aichi, Japan Hella Corporate Center USA Inc. Martin Fischer 1,171.0 B Hella KGaA Hueck & 6,500.0 B 22. 43811 Plymouth Oaks Blvd., Plymouth 48170 president, Hella Corporate Center 1,069.0 B Co. 6,300.0 B (734) 414-0900; www.hella.com USA Inc. and CEO electronics Lippstadt $49.95 $20 OFF division, Americas AC Inspection Any Heating or Cooling Dow Automotive Systems Steve Henderson 1,100.0 Dow Chemical Co. 56,800.0 president 1,200.0 Midland 59,985.0 Onlyone(1)perserviceaddress.Cannotbe Repair Service 23. 1250 Harmon Road, Auburn Hills 48326 combinedwithotheroīersforaddiƟonal Onlyone(1)perserviceaddress.Cannotbe (248) 391-6300; www.dowautomotive.com savings. combinedwithotheroīersforaddiƟonalsavings. NTN USA Corp. - automotive Angelo DeSantis 1,029.4 B NTN Corp. 5,718.7 B 24. operations vice president, automotive group 1,383.0 D Osaka, Japan 6,604.9 B 39255 W. 12 Mile Road, Farmington Hills 48331 (248) 324-4700; www.ntnamerica.com Behr America Inc. Wilm Uhlenbecker 897.0 Behr GmbH and Co. NA 25. 2700 Daley Drive, Troy 48083 president and CEO 894.0 KG 5,157.6 (248) 743-3700; www.behrgroup.com Stuttgart, Germany

This list contains information about Detroit-based divisions, affiliates, units and subsidiaries of companies whose headquarters are outside Wayne, Oakland, Macomb, Washtenaw and Livingston counties. Companies are listed with the address and top executive of their main Detroit-area office. This is not a complete listing but the most comprehensive available. Crain's estimates are based on industry analyses and benchmarks, news reports and a wide range of other sources. Unless otherwise noted, information was provided by the companies. Actual revenue figures may vary. NA = not available. B Crain's estimate. C From Automotive News. Figures represent total OEM sales. D Automotive News estimate. Figures represent total OEM sales. LIST RESEARCHED BY BRIANNA REILLY 20130520-NEWS--0017-NAT-CCI-CD_-- 5/17/2013 11:39 AM Page 1

May 20, 2013 CRAIN’S DETROIT BUSINESS Page 17 Esperion, Covisint plan stock sales amid IPO revival

BY TOM HENDERSON in three to six months. The recently closed round, cholesterol, in patients who are ei- tical companies in the past two CRAIN’S DETROIT BUSINESS Covisint provides secure com- which brought the total raised by ther intolerant or resistant to such years, in sharp contrast to a munications and collaboration the company since it was founded statin drugs as Lipitor and Tor- nonexistent IPO market during Two metro Detroit companies technology to companies that need in 2008 to $58 million, will fund up- vast. and after the recession. announced last week that they tight security. coming Phase 2B trials. Newton said he was encouraged Tom Henderson: (313) 446-0337, have filed registration statements Revenue growth has been driven ETC-1002 has shown good results by prospects for his IPO by a spate [email protected]. Twitter: for initial public offerings. largely by the upswing of the auto in lowering LDL, the so-called bad of initial offerings by pharmaceu- @tomhenderson2 Plymouth Township-based Espe- industry and by electronic medical rion Therapeutics Inc. said Tuesday record-keeping and patient man- that it had filed for a $70 million agement in health care, expected to IPO and plans to be listed on Nas- be a growth segment for years be- daq under the symbol ESPR. Credit cause of the Patient Protection and Suisse AG and Citigroup Inc. are the lead managers. Affordable Care Act. The same day, Detroit-based Clients include Ford Motor Co., Compuware Corp. said it had filed General Motors Co., Chrysler Group for a $100 million IPO for its Cov- LLC, Delphi Automotive PLC, Johnson isint Corp. business unit. It marks Controls Inc., Baylor Health Care Sys- the first initial offering planned by tem in Dallas, the Detroit Medical a technology company in Michi- Center, Beaumont Health System and gan since 1996. the states of Indiana, Vermont and Credit Suisse Securities LLC will Montana. act as lead book-running manager Esperion’s filing came just two for the offering, with Pacific Crest weeks after announcing it had Securities LLC as manager and closed on a venture capital round Allen & Co. LLC as co-manager of of $33 million. the joint book running, according Roger New- to a statement Wednesday from ton, Esperion’s Compuware. founder and Compuware said the number of chief science of- shares to be sold and the price ficer and a co-in- range for the proposed offering ventor of Lipi- haven’t been determined. tor, told Crain’s Compuware, which went public for a story pub- in 1992, first announced an IPO for lished May 6 Covisint in 2007 and went so far as that the compa- Newton to engage as the underwriter Mor- ny would need gan Stanley, the New York City- to go to the public markets to con- based investment bank. But the duct two Phase 3 U.S. Food and Drug flailing U.S. economy halted those Administration trials next year of a plans. In December, Crain’s re- cholesterol-lowering drug that has ported that an IPO would be filed the working name of ETC-1002. We have ﬂights.

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Page 18 CRAIN’S DETROIT BUSINESS May 20, 2013

BUSINESS DIARY

ACQUISITIONS “QuoteBase” software technology, which allows auto suppliers and other Proquest LLC, Ann Arbor, completed manufacturers to quickly and accu- its acquisition of the Ebook Library rately meet customer price-quote re- from Ebooks Corp. Ltd., Claremont, quests. Website: www.saphran.com. Australia, significantly expanding its e-book delivery and aggregation capa- Altair Engineering Inc., Troy, and the bilities with libraries worldwide. Altair Partner Alliance announced that Website: www.proquest.com. partner TES International, Troy, made its third thermal analysis tool CONTRACTS available. TESuite combines the capa- bilities of TES’ other software, Elec- DataFactZ, Northville, a specialized troFlo and ThermoFlo, to maximize system and data integration company, efficiency of thermal and fluid flow added three new clients: Alcoa Inc., analysis. Websites: www.altair.com, Pittsburgh, Pa., implementing multi- www.tesint.com. ple data integration projects using Mi- crosoft Structured Query Language WDIV-TV Local 4, Detroit, has a new Get two takes on the business outlook for and Server Integration Services; Stein app with news, weather and traffic. retail and banking in the keynote presentation Mart Inc., Jacksonville, Fla., imple- The “Wake Up With Local 4” app de- menting MicroStrategy as a reporting veloped by PNS Digital, the digital de- for the Crain’s CFO of the Year Awards. In platform to help with business intelli- velopment team of Post-Newsweek gence projects; and Bank of America Stations Inc., is available for iPhone short presentations, an industry executive will Corp., Charlotte, N.C., providing staff in the Apple App store by searching give an overview, followed by a take on the augmentation services to assist with WDIV. It will be available soon for An- various IT implementations for data droid devices. Website: www.clickon industry by an analyst covering that company. warehousing and business intelli- detroit.com. gence. Website: www.datafactz.com. For more information NEW SERVICES Terry McEvoy Lisa Payne on this event, please visit EXPANSIONS FordDirect, Dearborn, a joint venture Managing Director, Vice Chairman crainsdetroit.com/events AT&T Inc. has upgraded additional mo- between Ford Motor Co. and its fran- Equity Research and CFO bile Internet cell sites in Dearborn chised dealers, introduced LiveCon- Regional Banks & Taubman and Detroit, as well as sites in New- nect Communications Service, which PREMIER SPONSOR MAJOR SPONSOR Mortgage REITs Centers Inc. port and LaSalle, to expand AT&T 4G enables dealers to better engage with Oppenheimer LTE coverage for area residents and consumers through the dealerships’ businesses. Website: www.att.com. & Co. Inc. websites. FordDirect also offers a chat Jake’s Fireworks Superstore, based in service that provides around-the-clock IN PARTNERSHIP WITH Pittsburg, Kan., opened a retail outlet responses to customers’ online re- Samit Parikh David Provost at 4259 Joslyn Road, Auburn Hills. quests. Website: www.forddirect.com. REIT Analyst, Telephone: (800) 766-1277. Website: Advanced Cutting Tool Systems, Tay- President, www.jakesfireworks.com. ISI Group’s lor, has launched a new website, Chairman and CEO DTE Pipeline Co., an affiliate of DTE www.actsadvantage.com. LOCATION SPONSOR Real Estate Talmer Bank Energy Co., Detroit, placed into ser- Pulte Homes, a national brand of Pul- Research Team vice the northern portion of the Blue- and Trust teGroup Inc., Bloomfield Hills, stone Project, which interconnects launched an online video campaign to with Millennium Pipeline in New demonstrate how homeowners in- York. Bluestone is DTE’s first natural gas gathering project outside Michi- spire today’s new floor plans in its gan. Website: www.dteenergy.com. Life Tested homes. Videos include the Life Tested process and interviews SHE, Bloomfield Township, a contem- from consumer focus groups and high- porary women’s clothing and acces- lights of new product innovations. sories store, opened a second location, 16888 Kercheval Place, Grosse Pointe. Website: www.pulte.com. Telephone: (313) 571-3365. Website: www.she-stores.com. DIARY GUIDELINES NAME CHANGES Send news releases for Business Building & Managing an Engaged Online Community - A FREE Webinar ViSole Energy Inc., Troy, a solar ener- Diary to Departments, Crain’s gy services company, changed its Detroit Business, 1155 Gratiot name to Empower Energies Inc. Ave., Detroit, MI 48207-2997 or and launched a new website, send email to cdbdepartments@ www.empowerenergies.com. Tele- crain.com. 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May 20, 2013 CRAIN’S DETROIT BUSINESS Page 19

CALENDAR

Go Green! Go White! 11:05 a.m.-2 p.m. Free. Special offer for nonmembers: TUESDAY June 4. Detroit Economic Club. With Join ESD for $59 (50 percent discount), CRAIN’S TO HONOR CFOS MAY 21 Tom Izzo, Michigan State University including a one-year subscription to basketball head coach; Mark Crain’s Detroit Business. Bring non- Join Crain’s Detroit Business for its that includes an event ticket and a Doing Well and Doing Good: Estate Dantonio, football head coach; Mark perishable food items to donate to seventh CFO of the Year Awards, one-year subscription to Crain’s, Planning and Business Owners. 8-10 Hollis, athletic director; Tom Anastos, Gleaners Food Bank. Contact: (248) 5-9 p.m. June 13 at The and $99 for nonsubscribers. a.m. Automation Alley. With attorney hockey head coach; Suzy Merchant, 353-0735; website: www.esd.org. Roostertail, Detroit. For more information, call Kacey Robin Ferriby, vice president of women’s basketball head coach; and The finalists will be featured in the Anderson at (313) 446-0300, philanthropic services, Community Cathy George, volleyball head coach. Build Your Board Brand. 8 a.m. to noon May 27 issue of Crain’s and on the email her at [email protected], Foundation for Southeast Michigan. Westin Book Cadillac, Detroit. $45 June 10. Inforum. Workshop on tak- website, www.crainsdetroit.com. or visit www.crainsdetroit.com. Discussion will focus on the intrica- DEC members, $55 members’ guests, ing the path toward corporate board cies of estate planning, including tax $75 nonmembers. Contact: (313) 963- Tickets are $60 for subscribers, Join the conversation on Twitter service. With Patricia Binkley, execu- information and recent legislation. 8547; email: [email protected]; $55 for guests in groups of at with #crainscfo. Automation Alley headquarters, tive vice president, DHR International, website: www.econclub.org. least 10, $85 for a special offer Troy. $20 members at the door, and Mary Brevard, executive director, $25 nonmembers at the door. Contact: Inforum BoardAccess. Comerica GM Day. 11:30 a.m.-1 p.m. June 14. Ad- nonmembers, $25 junior members, (800) 427-5100; email: info@automa ESD: Your Passport to New Opportuni- Bank, Livonia. $100 BoardAccess ex- craft Club of Detroit. With Bob Fergu- $25 student members. Ticketless tionalley.com; website: www.automa ties. 5-7 p.m. June 6. Engineering Soci- ecutive coaching participants, $150 In- son, vice president, Global Cadillac. event; please include names of all tionalley.com. ety of Detroit. Networking and open forum members, $200 nonmembers. GM headquarters, Renaissance Cen- guests at registration. Contact: house. ESD headquarters, Southfield. Contact: www.inforummichigan.org. ter, Detroit. $35 Adcraft members, $45 www.adcraft.org. Inforum 51st Annual Meeting. 11:30 a.m.-1:30 p.m. Inforum. With Mark Ter- cek, president and CEO, The Nature Conservancy, and Tom Walsh, business columnist, Detroit Free Press. De- troit Marriott Renaissance Center, De- troit. $40 Inforum members, $55 nonmembers, $25 students, $700 table of 10 reserved seating. Contact: www.inforummichigan.org. WEDNESDAY MAY 22 “WANT TO Hot Shots: Career Connections. 5-7 p.m. Ann Arbor Spark. Networking for talent seeking opportunities for themselves, not for recruiters or staffing companies. Conor O’Neill’s, LIGHTEN YOUR Ann Arbor. Free. Contact: www.an narborusa.org. To register a company to participate: Scott Trossen, [email protected]. ENERGY BILL?” THURSDAY MAY 23 Doing Business in Indonesia and Sin- DTE ENERGY WILL SHOW YOU HOW. gapore. 8-11:30 a.m. Automation Alley. Geared toward companies looking to expand their markets overseas and If you want to lower your energy costs, get more efficient. Like saving up to 90% learn about Automation Alley’s Sept. 6-13 trade mission to Indonesia and on lighting costs by replacing traditional lighting with energy efficient LEDs or CFLs. Singapore. Automation Alley headquarters, Troy. $20 preregistered Our lighting advisor tool will help you find energy efficient alternatives to replace members, $30 at the door; $40 preregis- your existing lighting. Just go to dteenergy.com/lightingadvisor. tered nonmembers, $50 at the door. Preregistration closes at close of business May 21. Contact: (800) 427-5100; email: [email protected]; website: www.automationalley.com. UPCOMING EVENTS Executive Learning Series: Augment- ed Reality. 6-9 p.m. May 30. Adcraft Club of Detroit. Baldwin Theatre, Roy- al Oak. $25 Adcraft members, $35 nonmembers. Contact: www.adcraft.org.

2013 Mackinac Policy Conference. May 29-31. Detroit Regional Cham- ber. A comprehensive dialogue on culture, education and the 21st century global market. The event will bring together more than 1,500 attendees, including national experts and innovative change-makers who will challenge business leaders to work collaboratively to create a globally competitive, financially attractive business environment in Michigan. $1,700 members, $600 spouses, $2,575 nonmembers, $700 nonmember spouses. Grand Hotel, Mackinac Island. Contact: Marianne Alabastro, (313) 596-0479; email: malabast@ detroitchamber.com; website: http://mpc.detroitchamber.com.

ACG Detroit 6th Annual M&A Confer- ence. 7 a.m.-1 p.m. June 4. ACG De- troit. With Andy Dillon, treasurer, state of Michigan; John Diggins, partner, Platinum Equity Partners; Gretchen Perkins, partner, Huron Cap- FOR MORE ENERGY SAVING TIPS, ital Partners; and Robert Dye, senior vice president and chief economist, VISIT: dteenergy.com/savenow Comerica Bank. Detroit Athletic Club, Detroit. Through June 3, $80 ACG De- troit members, $120 nonmembers. Contact: www.acg.org/detroit/events. 20130520-NEWS--0020-NAT-CCI-CD_-- 5/17/2013 10:33 AM Page 1

Page 20 CRAIN’S DETROIT BUSINESS May 20, 2013

Crain’s Job Front, College Top Talent Visit crainsdetroit.com/jobfront and crainsdetroit.com/toptalent to search for jobs, post a résumé or find talent. Job Front PEOPLE

CONSULTING ness development manager, Adayana LAW of Macomb County operations, Hos- Inc., Indianapolis. pice of Michigan, Detroit, from pa- Will Curry to prin- N THE SPOTLIGHT Howard Goldman to partner, real es- I tient social services advocate. cipal in the tate department, Honigman Miller FINANCE The Detroit Water and Sewerage Diane Miller to chief program officer, civil/site prac- Department has named Nicolette Schwartz and Cohn LLP, Bloomfield tice, Civil & Envi- Hills, from counsel, Thompson & education department, Detroit Zoolog- Michelle Doran to Bateson its first ronmental Consul- executive direc- Knight LLP, Bloomfield Hills. ical Society, Royal Oak, from chief ed- CFO. ucational outreach officer, St.Louis tants Inc., Wixom, tor, Chartered Fi- from pipeline in- nancial Analyst She most MARKETING Science Center, St. Louis, Mo. tegrity engineer, recently was a Society of Detroit. Marc Bland to TransCanada She continues as visiting SERVICES Corp., Troy. specialist for vice president, di- executive direc- versity marketing John Heitchue to the state and tor, Michigan As- practice, R.L. Polk sales manager, ENGINEERING sociation of Public local K/E Electric Sup- Curry & Co., Southfield, Daniel Chien to se- Employee Retire- government from head of di- ply Corp., Mount nior vice president, engineering and ment Systems, program with versity and inclu- Clemens, from product development, AM General Saline. the Michigan sion. Also, Antho- outside salesman. State University LLC, Livonia, from vice president for Doran Tom Bomberski to Bateson ny Pratt to vice Eric Steen to CEO, global engineering, General Dynam- CFO, Billhighway, Extension president of fore- InfuSystem Hold- ics Land Systems, Sterling Heights. Troy, a financial management compa- Service in East Lansing. casting, the Amer- ings Inc., Madison ny, from senior manager, Deloitte Bateson, 49, is a CPA with a icas, from direc- Heights, from ENTERTAINMENT Consulting LLP, Detroit. Bachelor of Business Bland tor of forecasting principal, Eric K. Administration in professional for the Americas, Steen & Associ- Jeri Butler to re- and Lonnie Miller ates, New York gional sales man- HEALTH CARE accounting from the University of Heitchue Michigan-Dearborn and a Master of to vice president and Los Angeles. ager for Michi- Ignazio Tatulli to of loyalty manage- gan, Ohio and Public Administration in Jennifer Jones to CEO, Benefit Out- director of retail ment practice, sourcing Solutions Inc., Commerce Pennsylvania, and wellness ser- government management from from vice presi- Disney Institute, Eastern Michigan University. Township, from COO. vices, Henry Ford dent of marketing Christopher Schall to vice president of the business-in- West Bloomfield and industry sights and adviso- retail sales, Crypton Inc., West Bloom- Hospital, West analysis. ry segment of The INSURANCE field Township, from vice president of , Bloomfield Town- sales and training, dreamGuard, Pit- Walt Disney Co. Mario DiPonio to risk manager, Her- Lake Buena Vista, ship, from captain, NONPROFITS cairn, Pa. shey Insurance Group Inc., Troy, from Fla., from White Silver Shadow, Sil- Quentella John- Lake Township versea Cruises loan officer, J.P. Morgan Chase & Co., son to volunteer TECHNOLOGY office, from busi- Tatulli Ltd., Monaco. South Lyon. Johnson services manager Butler Bob Doyle to director of communications, Association for Advancing Au- tomation, Ann Arbor, from marketing and communications manager, Envi- ronmental Quality Co., Wayne. Also, Pat Davison to director of standards development, from senior project manager, NSF International, Ann Ar- bor; and Jackie Kazaleh to marketing and membership manager, from international business coordinator, NuStep Inc., Ann Arbor. John Galvan to operations manager, quality containment services, Atco In- dustries Inc., Sterling Heights, from project engineer, Design Systems Inc., Farmington Hills. Melissa Koesel to human resources Violet, Jaime, and Touﬁq of Level One. manager and tech talent scout, Stout Systems Development Inc., Ann Ar- bor, from human resources manager, The Entrepreneurial Bank. Greektown Casino-Hotel, Detroit. TRANSPORTATION Stewart Slipiec to CEO, Alliance Mo- bile Health, Troy, from general man- No interpretation needed. ager, Napa Ambulance Service Inc., Napa, Calif. H.E. (Scott) Wolfe to CEO, Universal We speak your language: Entrepreneurial. Truckload Services Inc., Warren, from president and CEO, LINC Logistics Co., Warren. Also, David Crittenden to Call us. CFO, from CFO, LINC Logistics Co.; Don Cochran to vice chairman/president, from CEO/president; and Bob Sigler to executive vice president, from Contact Greg Wernette CFO. Entrepreneur and Chief Lending Oﬀicer, 248-737-0300 PEOPLE GUIDELINES Announcements are limited to management positions. Send submissions to Departments, Crain’s Detroit Business, 1155 Gratiot Ave., Detroit, MI 48207- 2997, or send email to [email protected]. Releases must contain the person’s name, new title, company, city in which the person will work, former title, former company (if not 32991 Hamilton Court ∫ Farmington Hills, MI 48334 ∫ levelonebank.com promoted from within) and former city in which the person worked. Commercial Banking ∫ Retail Banking ∫ Mortgage Services Photos are welcome, but we cannot guarantee they will be used. 20130520-NEWS--0021-NAT-CCI-CD_-- 5/17/2013 7:31 PM Page 1

May 20, 2013 CRAIN’S DETROIT BUSINESS Page 21 Livernois: Avenue in the fast lane for a 1.7 million face-lift ■ From Page 1 al group of nonprofits and banks — history. fall when it gets dark early,” said We’re never going to attract big said. “Pop-ups give them a low- including the Ford Foundation and That $200,000 is just the begin- Kim Tandy, executive director of box stores, so we want smaller cost, low-risk space to experiment Chase bank — to install art in the ning of bigger funding for Liver- the University Commons Business Dis- stores.” and test their business in real vacant storefronts and medians nois Avenue. Approximately $1.5 trict, which encompasses the Av- To encourage that, she has been time.” along Livernois Avenue from Sev- million will be flowing to the area enue of Fashion. “If we’re going to working with the DEGC, which Hatch Detroit is also part of the en Mile to West Outer Drive. The for streetscaping projects along make it a walkable community, just named the Avenue of Fashion group of entrepreneurs, nonprofits project was one of 54 projects se- the 2.8-mile stretch from the Lodge then people need to feel secure. its next Revolve neighborhood. and city groups focusing their ener- lected out of 1,200 proposals. freeway and Eight Mile. The mon- When we entice businesses and Last year, the Revolve program gy on the stretch. The nonprofit “This is a very special place in ey is a matching deal between the they go talk to other businesses, brought pop-up shops, such as worked with the Detroit Lions to Detroit,” said Michael Forsyth, federal government ($975,000) and that’s their big concern.” Tashmoo Biergarten, to the West Vil- identify six neighborhoods it would manager of retail development at the DEGC and other partner orga- To combat that problem, the lage neighborhood as a way to work with over the next three the DEGC. “It always has been. nizations ($525,000), and will be UCBD, which has being promoting prove the demand for retail. years. This year, all of the focus is And blending art with economic used for landscaping in the medi- economic development on the That was such a success that the on Livernois. They started by host- development is an exciting thing. ans and pedestrian-safety im- strip for more than a decade, hopes DEGC is expanding the Revolve ing a cleanup in the district with Li- It’s important for Detroit to have provements. The project will start to install lighting on the business- program and rolling out to Liver- ons players. Next is Hatch’s own art great design. That’s the new na- next spring. es themselves this year. Tandy, nois next month. It will have a installation project, which will hap- ture of retail; you have to give peo- The DEGC is also working with who grew up in the neighborhood, website and a street location, and pen this fall at Livernois and Outer ple an experience, a reason to its partners to secure additional hopes that will make the area it will start accepting applications West Drive. Finally, they will work come out and not do all of their funding for a second phase that more attractive, especially to for pop-ups and permanent retail- with five area businesses on sign shopping online.” would include new sidewalks, restaurant and shop owners who ers in the district. improvement projects. Starting in June, the DEGC will lighting, bike lanes and other might want to call Livernois home. “For the business community “We’re looking to improve the re- be issuing a call for artists — five amenities. “We are really pushing for that might not be as familiar with tail experience for customers,” said with national reputations and five Lighting in particular is a prior- restaurants, not big chains, not Livernois as a Midtown or a Cork- Vittoria Katanski, executive direc- local talents — to pair with stu- ity for the district because it has fast food, but small family eateries. town, it’s really important to shine tor of Hatch. “It’s not just about dents from University of Detroit Mer- been an impediment to luring The neighborhood is asking for it,” a spotlight on what the economic putting in a business; it’s about im- cy and Marygrove College to create more businesses. “Lighting is our Tandy said. “Also smaller Detroit- opportunity is on Livernois be- proving the existing businesses.” artworks that reflect the district’s biggest challenge, especially in the based boutiques and nice shops. cause it’s very strong,” Forsyth See Livernois, Page 22 MARKET PLACE

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Page 22 CRAIN’S DETROIT BUSINESS May 20, 2013 ’RIF: Dump Drew and Mike for Dave and Chuck? Gen Y is why ■ From Page 1 Although it hadn’t been con- and Clark and a number of other linked to station ratings. WRIF was firmed as of Friday, Crain’s has CHANGING FACES ON THE DIAL radio hosts and major entertain- charging between $400 and $500 for been told by sources familiar with ment personalities such as Kid a 60-second advertising spot during Detroit’s morning radio landscape has seen many of its longtime the situation that “The Drew and personalities and shows disappear in recent years over contract issues, the Rock and Bob Seger as an attorney “The Drew and Mike Show,” ac- Mike Show” will soon be replaced trend of music replacing talk, and retirements. Some examples: at Troy-based Giarmarco, Mullins & cording to radio sales insiders. with the “Dave and Chuck the Cal Cagno, the station’s former afternoon host, in November replaced “Dave Horton PC. Novak died of a heart at- WRIF had 2012 revenue of $11.1 Freak” show that left Windsor- and Chuck the Freak” on Windsor’s CIMX 88.7 FM, the Bell Media Radio- tack in January. million, according to Chantilly, based alternative music station owned station better known as 89X. Dave Hunter and Charles Urquhart, on the “The terms of the contract (with Va.-based radio industry analysts 89X in November for what Toron- station since 2001, are expected to return to local airwaves soon. Greater Media) don’t allow any BIA/Kelsey. to-based station owner Bell Media Jim Harper retired in December 2011 from Greater Media Inc.’s WMGC kind of disclosure about any- A source told Crain’s 89X was Radio says was a contractual offer 105.1 FM, after being on the station since 2001. He had been on the air in thing,” she said. It is believed that charging $100 to $150 for 60 sec- it didn’t want to match. Detroit since 1967. if they left for a non-Greater Media onds during “Dave and Chuck the Dave Hunter and Charles Dick Purtan retired in March 2010 from CBS Radio Inc. oldies station station in the Detroit market, an Freak.” An annual revenue esti- Urquhart (and Lisa Way) since WOMC 104.3 FM after 45 years on air at several Detroit stations. industry-standard noncompete mate for 89X was unavailable. April 2001 were on CIMX 88.7 FM, Jeff Deminski and Bill Doyle spent eight years on mornings at CBS Radio’s clause would keep them off the air It’s doubtful anyone replacing the official name of 89X, until a WXYT 97.1 FM until 2007 before one year (2009) at Greater Media’s WCSX for at least six months. Lane and Clark will be able to surprise announcement on Nov. 23 94.7 FM. They were replaced at WCSX in January 2010 by Ken Calvert. charge the same rates initially. that they were leaving the station Deminski and Doyle, who now do an afternoon show in New Jersey, had “(Dave & Chuck) are far from in for an unnamed new outlet. replaced the longtime “J.J. and Lynne” show in the 6-10 a.m. slot on 94.7. The numbers an enviable position coming in to They’ve been under a noncompete — Bill Shea WRIF was Detroit radio market replace very well-liked and long- clause from their contract with weekday leader in the mornings time stars,” Tanner said. “On the Bell Media that ended this month. an earlier show in 2009-10) and re- they would still (have been) on the for the lucrative male age 25-54 de- other hand, Dave and Chuck have They’re known for their offbeat mains the nightly talk show rat- air for another week on WRIF,” he mographic for February through been in the market longer and brand of humor and banter, and ings leader. said. “More importantly, they are April with a 1.5 average rating, ac- have a true following in that day consistently have been first or sec- The network, however, decided a cash cow for the station.” cording to rankings from audience part. It will be quite interesting.” ond in the local market with its tar- that it wanted Fallon, 38, to leave WRIF announced on May 8 that survey firm Arbitron Inc. The competition is keeping an geted demographic: men age 18-34. “Late Night With Jimmy Fallon” the “Drew and Mike Show” would 89X is ranked 11th with six other eye on the situation. They matched or beat “Drew and to replace Leno after the 2014 Win- end after 22 years on Friday. It pro- stations with a 0.3 average rating. “The true test of a great morning Mike” with the younger listeners. ter Olympics. vided no other details. Second was WXYT FM 97.1 with a radio show is if they can move While Greater Media wouldn’t Fallon’s current show airs later When asked, via email, if it’s 1.3 average rating. Branded as “The across the street to a competitor comment, Tanner said that’s the and has lower ratings than Leno, possible Lane and Clark could re- Ticket,” WXYT is the sports talk and take their audience with them. audience the radio network seeks. but it’s a younger demographic main with the company, possibly station that carries game broad- Some shows can, some can move a “Dave and Chuck fit right into that network executives are bank- doing a show on a sister station in casts of Detroit’s pro sports teams. portion of their audience, others that scenario quite nicely,” he said. ing on him bringing to the nightly Detroit, Greater Media Vice Presi- The station’s morning drive- very little,” said Tom O’Brien, vice Gen Y, or the millennials, is gen- talk show time slot made iconic dent of Corporate Communication time program is “Stoney and Bill,” president and market manager for erally considered to have been since 1954 by Steve Allen, Jack Heidi Raphael said the broadcast- hosted by Mike Stone, Bill McAl- Atlanta-based Cumulus Media Inc.’s born in 1982 or later. Paar and Johnny Carson. er has “no plans for that.” lister and Sara Fouracre. three Detroit stations. “Everybody is going after the The attorney handling Lane’s When looking at all adult listen- “Dick Purtan is a good example; millennial generation. The TV peo- Landing spot business affairs hinted that other ers 18-plus, WRIF and 89X were he moved a number of times over ple, the car companies, everybody broadcasters are interested in the tied at fifth in the Detroit market the years and his audience traveled is going after Tanner and others have specu- show, but declined to be specific. with a 0.6 average rating in Octo- with him every time. In other situ- this huge lump lated that Lane and Clark could “There’s a great deal of talent ber, the last time “Drew and Mike” ations, a morning show can be of people,” said end up doing a morning show on there. I don’t think anyone would and “Dave and Chuck the Freak” good, but they are a product of their Dick Kernen, one of Greater Media’s two other be surprised to hear that there’s competed directly. radio station. The audience loyalty vice president of Detroit stations — adult contempo- interest,” said Loretta Ames, a Last month, WRIF was sixth is with the station. They may enjoy industry rela- rary WMGC 105.1 FM and classic partner at the Detroit office of with a 0.5 average rating while the morning show, but not enough tions at the rock WCSX 94.7 FM — or even an Bloomfield Hills-based law firm 89X, with Cal Cagno as the morn- to move in mass if they leave.” Southfield-based afternoon drive- Plunkett Cooney PC, who is repre- ing host, had fallen to 21st in the Ratings and revenue are the bot- Specs Howard time show, al- senting Lane. She said she didn’t market with a 0.1 average rating — tom line, O’Brien said. School of Media though that think Clark had representation. indicating that 89X’s audience did- “The best morning shows focus Arts and a 50- could involve a “We’ve had conversations with n’t stick with the station. on maximizing ratings and also Kernan year veteran of pay-cut because more than one company,” Ames Ratings are a fraction of what they maximizing revenue,” he said. the radio industry. that portion of said. “This is a man who has been used to be for all stations because au- “Like every industry, radio is more Kernen compared the fate of the day tradi- incredibly passionate about what diences have been splintered by competitive than ever. A station “Drew and Mike” to Jay Leno and tionally attracts he’s done on morning drive for 22 choices — satellite radio, MP3 play- needs its morning show to be en- NBC’s decision to replace him as fewer ad dollars. years.” ers, etc. — and because of the intro- gaged not only with listeners, but host of “The Tonight Show” with “I can’t imag- She could not comment on duction of the Portable People Me- also with advertisers and the com- Jimmy Fallon next year. ine Greater Me- whether the pair will continue to ters that provide much more munity.” Tanner Leno is 63 and has hosted the dia would not work together. detailed listener data compared to Bill Shea: (313) 446-1626, venerable “Tonight Show” since have plans for their dynamic duo. Ames is the widow of Michael the old hand-written diaries. [email protected]. Twitter: 1992 (except for a brief fling with If they were truly out, I don’t think Novak, who represented both Lane Advertising rates are largely @bill_shea19

Livernois: Avenue the target for artwork, new streetscapes ■ From Page 21

For the Lions, they wanted to get Livernois between Cambridge back to their history as well as be a Street and West Outer Drive. They part of Detroit’s future. “We paid $10 per square foot for the Detroit Soup spilling over onto Livernois thought it was important for the property, which has seen many Lions to pay a significant role in better days. They intend to open a Detroit Soup is coming to Livernois Avenue. troit Soup. “It just seemed to make the most sense to the resurgence and revitalization restaurant as well as retail and are For the past three years, the group has been host- us to work with a community that is trying to im- efforts that are taking place in the focused on being a part of a walka- ing a monthly dinner series as a way to help artists prove it themselves; Soup could be a really good city,” said Rob Wooley, director of ble local community. and community members fund their creative pro- way to have those dialogues.” community relations for the Lions. “We’re focused on development jects. You come, you pay $5 at the door, you eat soup The first Livernois Soup will happen on June 6, at Ron Bartell, the Lion’s Detroit- based around viable communities (and other food), listen to the projects, and then vote 19410 Livernois Ave., which is a pop-up community born cornerback, is a perfect meld- rather than traffic patterns,” Dick- for your favorite. The crowd pleaser walks away space being created by the Detroit Collaborative De- ing of the old and new. His uncle, inson said. “This northwest side of sign Center at the University of Detroit Mercy. with the night’s take. Rufus Bartell, owns Simply Casual Detroit has a lot of money to spend, “It is a pop-up space, but most pop-up has been re- on Livernois, and now Ron has but it’s not spent in the city. You Staring in June, there won’t just be one soup for tail,” said Virginia Stanard, director of urban de- purchased five buildings in the have money bleeding out of the all of Detroit. The organization received an $80,000 sign for the DCDC and adjunct professor of architec- area. The uncle-nephew pair in- city into Ferndale and Royal Oak grant from the Knight Foundation to expand into spe- ture at UDM. “This isn’t retail; it’s a community tend to open a business together, instead of staying in Detroit. We cific communities: Livernois, Brightmoor, Grand- hub. The idea is that the storefront would serve to possibly a restaurant and bar. want to be able to offer people a vi- mont Rosedale, Hubbard Farms and Highland Park. showcase the businesses and the culture of the Liv- Joining them on the strip are able commercial enterprise.” Plus, there will be a Youth Soup for young people. ernois corridor.” Chad Dickinson and his partner, Amy Haimerl: (313) 446-0416, “Livernois was a conversation with Hatch Detroit The center officially opens on May 31 with the Burt Pierce. Last fall they bought [email protected], Twitter: and the Detroit Lions and trying to work alongside two-day Light Up Livernois festival. the old Hunter’s Supper Club on @haimerlad them,” said Amy Kaherl, executive director of De- — Amy Haimerl 20130520-NEWS--0023-NAT-CCI-CD_-- 5/17/2013 7:29 PM Page 1

May 20, 2013 CRAIN’S DETROIT BUSINESS Page 23 Manufacturing: From brawn to brains ■ From Page 1 Southeast Michigan gained 27,600 continue to increase production manufacturing jobs, an increase of MANUFACTURING’S IMPACT with fewer workers, who are work- 17 percent, from 2010 through 2012, ing more hours, because of techno- Nearly 14 percent of the jobs in the according to recent data from the U.S. supply base are in Michigan. logical advances. Detroit-based workforce-develop- So Michigan’s workers must be- Direct jobs at automotive ment initiative Workforce Intelligence suppliers: come more skilled, experts agree. Network. But that pales in compari- “There’s not a direct tie that you Michigan: 102,624 son to the more than 200,000 automo- must have this level of education, Ohio: 89,423 tive jobs lost since 2000. but you must have training, expe- The new auto jobs are weighted Indiana: 79,651 rience and maturity,” Dziczek more heavily in high-skilled posi- Tennessee: 48,284 said. “I think we’re still going to be tions in research and development. Kentucky: 41,097 making cars in Michigan and have “We have such a legacy in manu- Illinois: 37,087 blue-collar jobs, but they will re- facturing and have been a power- Alabama: 30,566 quire a higher order of skills.” house for so long, and there is a bit U.S. total: 734,222 Spurr and Grimes emphasized an of a rebound effect from the reces- increased focus on education to help sion,” said Lisa Katz, executive di- Other jobs data the state transition — or face dire rector of WIN. “But it’s important consequences in a global economy. 118,705*: The number of indirect for us to look at what the jobs are “It’s something we’ve heard a jobs supported by Michigan’s and what that effect is on the econ- supply base as of January 2013. million times, but we have to invest omy.” in education and develop human 164,886*: The number of jobs In 2012, there were 41,500 job supported by Michigan supply base capital; that’s going to be the key to openings in manufacturing in employee spending as of January our success,” Spurr said. “I think Southeast Michigan, according to 2013. we could be in trouble if we don’t the WIN study. The most in- 4,223,900**: The total employed turn things around, in terms of the demand positions were for me- in Michigan in all industries as of share of people who get a college ed- chanical and electronics engi- May 15, 2013. ucation. We operate in a global neers, with median wages of $43.12 9 percent: The percentage of what economy, and we’re losing ground.” and $39.81 per hour, respectively. the automotive supply base Grimes said recognizing that There’s also booming demand for supports among all employment in Michigan’s workforce is changing information technology in South- the state. is the first step to building a east Michigan. There were 40,400 * Data from IHS Automotive Inc./Motor & stronger economic future. job postings in 2012, many of them Equipment Manufacturers Association, “The fact that the auto industry to support the automotive industry. January-March 2013 has come back, the really good stuff ** Data from U.S. Bureau of Labor Statistics Michigan will always be a manu- going on in Michigan is related to facturing state, just less so as the in- wage, low-skill employment base the white-collar activity,” Grimes dustry evolves, said Kristin Dz- puts the state more in line with the said. “Those jobs have a better iczek, director of the labor and national aver- chance to grow, and I’m more opti- industry group for the Ann Arbor- ages. Michi- mistic about this state than I’ve based Center for Automotive Research. gan’s strong been in years because we’re finally “There are going to be fewer of middle class making the transition to a knowl- these kinds of jobs (labor) because edge-based economy.” forged from we have a … lot fewer plants than Dustin Walsh: (313) 446-6042, blue-collar we used to,” Dziczek said. “There [email protected]. Twitter: workers inflated are jobs of a higher order, middle- @dustinpwalsh per-capita in- skilled jobs, people working in engi- come beyond neering and R&D, or on connected those of other or autonomous vehicles.” states, Grimes Plymouth-based Freudenberg- Grimes said. NOK is working “Michigan has historically had a on making its more equal distribution of wealth sealing tech- FREE WEBINAR: JUNE 26, 12–1 P.M. due to a strong union presence and nologies lighter other factors, so we’ve had a much to improve au- larger middle class,” Grimes said. tomaker fuel “What you’re seeing now is a con- economy. That tinuing of the distribution that’s oc- means the sup- curred everywhere else over the plier needs past 40 years, and Michigan is start- In Partnership with: Presented by: skilled employ- ing to look more like the rest of the ees to work on ™ Dziczek country.” the R&D and en- Stephen Spurr, economist and gineering end, said Brad Norton, professor of economics at Wayne company president. State University, said the growing “Customers are demanding link between income and education lighter-weight vehicles without and skill is a global phenomenon as About the Webinar giving anything up or raising the technology expands throughout the Structuring corporate benefi t programs will adapt to the price; that’s where we have pres- automotive industry. health care changes coming in 2014. This webinar will sure for creativity and ingenuity “In Michigan, there’s a strong de- address key points for employers to consider. to drive our industry,” Norton Benefi t Design mand for the highly skilled and said. “That change is absolutely highly educated, and we’re just a Discover: pushing us to a knowledge-based for 2014 microcosm of the world,” Spurr Hear from experts about the ways benefi t plans workforce.” said. “We’ve had an explosion of will change: with or without an exchange. Norton said the job shift is also technological changes, and things Get examples of benefi t structures geared to evident on the shop floor as new are becoming more and more capi- 2014 standards technology is requiring fewer tal intensive and less and less labor workers, but workers with more intensive in the auto industry.” See the potential pitfalls of confi guring benefi t advanced kinds of skills. Spurr is referencing the growth plans incorrectly “We’ve figured out ways we can in productivity of Michigan’s use one person to cover three ma- workforce, due to technological ad- chines, where in the old days it vances, automation and software. was one person per machine,” Nor- In the U.S., manufacturing pro- ton said. “Our people on the shop ductivity increased 3.8 percent in floor have to be engaged and think- the first quarter of 2013, as output ing associates more today than grew 5.6 percent and hours rose 1.7 ever before.” percent, according to U.S. Bureau of Don Grimes, economist and se- Labor Statistics data. Over the past nior research associate of research year, manufacturing productivity on labor, employment and the increased 1.7 percent as output economy at the University of Michi- and hours worked rose 2.6 percent gan, said Michigan’s transitioning and 0.9 percent, respectively. workforce and shrinking high- In other words, manufacturers 20130520-NEWS--0024-NAT-CCI-CD_-- 5/17/2013 5:09 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS May 20, 2013 Orr: Decision on bankruptcy expected to be made in 2 months ■ From Page 3 four to eight weeks. ment operations ($50 million to $70 approval from Gov. Rick Snyder to file When asked about the big bank- million annually). a petition for Detroit’s bankruptcy. THE WAY FORWARD FOR DETROIT ruptcy decision, Orr said it all de- Meanwhile, decisions on city de- The petition and a bankruptcy plan Highlights from Emergency Manager Kevyn Orr’s financial pends what can be done in about a partment consolidation or elimina- would be filed in federal court, and the plan: two-month window. tion will “be coming very quickly,” he city’s creditors would vote on the plan. “If we’re negotiating, and we get to said. Current cash position a term sheet,” he said. “That’s Those are just some of the ways progress.” Orr, who was appointed last March by Crunching the numbers The report estimates the city’s net cash position as of April Orr called bankruptcy a “messy the state’s Local Emergency Financial Detroit’s financial problems run 26 was negative $162 million. The city had $64 million cash on hand but obligations totaling $226 million. and severe” process but a bargaining Assistance Loan Board, says he can deep, Orr said. chip he’ll consider turn around the city’s finances. The city borrows $75 million per Exit strategies to get the job done. Patrick O’Keefe, founder and CEO year on average, and this fiscal year Larry Gardner, of Bloomfield Hills-based turnaround has borrowed $167 million. Detroit Plans to exit power grid business ($30 million in savings owner of Troy- specialists O’Keefe has taken in $100 million less than it annually), privatize garbage collection ($15 million), evaluate based turnaround and Associates Con- spends, on average, for the last five outside operator/lease arrangement for the Detroit Water & firm Lawrence Gard- sulting LLC, called fiscal years, according to the report. Sewerage Department ($50 million to $70 million). ner Associates Inc., Orr’s bankruptcy Only by issuing more debt has De- said avoiding Chap- timeline “a negoti- troit been able to pay its bills. Blight ter 9 will be an up- ating ploy rather Its long-term debt is around $15 bil- The city has an estimated 80,000 blighted structures and hill battle. than a real threat.” lion, which includes general fund 60,000 vacant lots. Orr said the city is working on adequate “How difficult is “He should ex- debt of $1.1 billion, enterprise fund funding and evaluating plans for expediting more demolition Gardner it? I think it’s a nine haust all sorts of debt of $6 billion, pension obligation and cleanup. More collaboration at the state and county level (on a scale) of 10 to do this,” he said. possible restruc- certificate debt of $1.8 billion, and oth- is needed, as well as with Detroit Public Schools, the Detroit Housing Commission, and non-governmental and community Short of municipal bankruptcy, Orr turing objectives er post-employment benefit obliga- O’Keefe agencies. Orr plans heightened efforts on tax foreclosures, tions of $5.7 million, according to the would need consensus from a wide va- before he says demolitions, public-private partnerships and “targeted riety of employees and stakeholders. ‘Chapter 9,’ ” O’Keefe said. 44-page financial report. investments to revitalize certain borderline or faltering Within two months, Orr won’t be “How are you going to pay that?” neighborhoods.” able to bargain with all of the city’s la- Orr said. “Are you going to just keep Code red bor unions, O’Keefe said. borrowing debt? You’re just digging a Public safety Orr is moving briskly because of “If he spends a day with each union hole. Better use of resources is needed for the city police and fire his 18-month mission (as spelled out going through their proposal, that “The thing that shocked me (when departments, and restructuring plans will be developed. The compiling the report) was there is no by the state law) and the fact that by doesn’t leave them a whole lot of city is spending $569 million (46 percent) of its fiscal year March, he estimates, the city won’t time,” he said. “Bargaining in good exit strategy. If we don’t (fix) this, that 2012-13 budget on public safety services. Revenue increases generate enough revenue to provide faith implies that there will be a back $5.7 billion becomes $7 billion. Ten and “civilianization of administrative functions” could help even the most basic of services. and forth.” years from now, the aggregate (debt) improve the departments’ bottom lines and efficiency. “In my opinion, we are already in- Lisa Gretchko, a bankruptcy attor- data of $15.6 billion becomes $21 bil- solvent,” Orr said. “In March 2014, we ney and member of Royal Oak-based lion. The gap just gets worse.” IT infrastructure go off the cliff, underneath the line, Howard & Howard Attorneys PLLC, said The city also has a budget deficit of City information technology infrastructure issues are an estimated $380 million. never to come back. We are in mis- the city must try to avoid bankruptcy significant, Orr said. Police and fire first responders need to sion critical right now. It just gets because it can’t afford the hundreds of Orr cautioned that, despite the am- be able to communicate with each other over an integrated worse. March is free-fall. millions of dollars it would likely bitious restructuring plans in system. City officials and consultants are reviewing what “You call (police), the cars don’t cost. Plus, she said, there would be progress, the city won’t be trans- critical improvements in IT are necessary. The costs are come because there is no gas, not be- lingering side effects for the city and formed overnight. unknown, said Bill Nowling, Orr’s spokesman, but grant funds cause they are too busy. That’s why surrounding communities. “If you want to go from Detroit to will be pursued. there is a sense of urgency.” “The people who think they are en- Bel Air, that’s not going to happen in Orr said the city will determine titled to be treated in a certain way, if two months, but you can go to Detroit Labor soon whether savings should be they take a sort of scorched-earth ap- with a better functioning govern- Concessions will be sought from the city’s 48 labor unions. achieved by outsourcing trash collec- proach or draw a line in the sand, ment,” Orr said. Orr’s report says that concessions will be pursued making tion ($15 million annually), power everybody pays the price — literally,” Kirk Pinho: (313) 446-0412, sure they are equitably distributed across the unions and grid operations ($30 million annually) Gretchko said. [email protected]. Twitter: among nonunionized employees, and “that the impact of and Detroit Water and Sewerage Depart- Orr would have to receive written @kirkpinhoCDB these concessions on employees are mitigated to the extent possible.” Workers’ compensation claims have been $15 million each of the last two budget years. Pensions City officials are evaluating whether the 83 percent and 100 Orr’s report no surprise for muni bondholders percent actuarial funding levels for the Detroit General Retirement System and the Detroit Police and Fire Retirement BY JEFF BENJAMIN represents 68 percent of Detroit’s debt, System are accurate. Market values of the plan assets were $660 million and $425 million lower than the actuarial CRAIN NEWS SERVICE followed by $1.8 billion in pension values, the report states. The city deferred $103 million out obligation certificates (20 percent of Anyone who has of $134 million in contributions in fiscal year 2012-13. Holders of Detroit municipal bonds “ the debt), and $1.1 billion in general are viewing Emergency Manager invested in Detroit in fund debt (12 percent of the debt). Debt Kevyn Orr’s financial report as a Orr’s report, the first major devel- clear indicator that default or bank- the last several years opment in the emergency manager Restructuring more than $15 billion in city liabilities is ruptcy is on the table. process, indicated that salaries, “necessary for the city’s operational and financial survival.” Orr and his consultants began meetings with creditors last In analyzing last week’s report has been investing in wages and overtime accounted for the from Orr, Moody’s Investors Service week to renegotiate terms of the city’s debt and may seek to largest portion of the city’s expendi- issue new debt, but Orr emphasized that structural change concluded that it is a “negative for De- junk credit. tures, comprising nearly 33 percent of must occur to address the city’s cash burn. troit bondholders.” ” the 2012 operating budget. Chicago-based Moody’s analyst Ronald Bernardi, Bernardi Securities “The relative burden on each of the Department consolidation Genevieve Nolan said the plan indi- stakeholders, such as city employees, The city has begun a department-by-department review to cates that Detroit requires significant in junk credit.” pension beneficiaries and bondhold- and fundamental debt relief to help evaluate ones that may be consolidated or operated more Orr was appointed in March by ers, will be determined by the imple- efficiently. The report says systems and procedures in key shore up its finances, which is “a Gov. Rick Snyder to step in and try to mentation of the emergency manag- areas, like tax collection, will be evaluated for ways to clear indication that a default or right the city’s financial course. The er’s recovery plan,” Nolan said. improve productivity and results. bankruptcy is a real option.” city has $15 billion worth of long-term Ultimately, as Harris May, presi- For those familiar with Detroit’s fi- pension liabilities and a growing dent of Rye Brook, N.Y.-based Strate- Grants nancial history, or familiar with the deficit of more than $300 million. gic Partners Investment Advisors Inc., municipal bond market overall, such Detroit won $293 million in grant money from 71 state and According to the Moody’s report, summed it up, anyone who bought De- federal programs, and 5 percent to 10 percent of it is at risk a grim outlook will not come as a sur- the majority of Detroit’s debt consists troit muni bonds with their eyes wide of being lost, Nowling said. The report states that a review of prise. of enterprise debt repaid from water open should be in a position either to the administration process is underway. “For several years, Detroit’s fi- and sewer revenue, not the city’s gen- ride it out or shrug it off. nances have been below average,” eral operating budget. “With some exceptions, there are Less red tape said Ronald Bernardi, a municipal “We currently rate both the city’s few surprises in the municipal bond bond trader and president of Chicago- Orr plans on reducing the at least 32 steps for business water revenue and sewer revenue lien market, and the problems with De- permit approval. Another target is health plan administration; based Bernardi Securities Inc. “In re- debt Baa3 with a negative outlook,” troit have been well-publicized for the city maintains more than 20 health care plans through 10 cent years, they’ve been issuing debt Nolan wrote in her analysis. years,” he said. “Detroit’s bonds have vendors for active and retired employees. The city in fiscal just to pay their operating costs. Any- Moody’s rates Detroit’s general from some time only been suitable for year 2013-14 is expected to spend $263 million on that care. one who has invested in Detroit the obligation debt at an even-lower Caa1. high-risk investors.” last several years has been investing The $6 billion in enterprise fund debt From Investment News 20130520-NEWS--0025-NAT-CCI-CD_-- 5/17/2013 7:33 PM Page 1

May 20, 2013 CRAIN’S DETROIT BUSINESS Page 25 VC: Michigan’s activity takes biggest leap in U.S. www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain From Page 3 GROUP PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] “We’re really excited about the sionals has grown from 43 to 62, ASSOCIATE PUBLISHER Marla Wise, (313) 446- growth in Michigan. It’s been slow and the number of firms headquar- 6032 or [email protected] and steady and moving in the right tered here has gone from 15 to 20, Symposium tackles health EXECUTIVE EDITOR Cindy Goodaker, (313) 446- 0460 or [email protected] direction,” Carrie Jones, the execu- with another nine out-of-state VC MANAGING EDITOR Jennette Smith, (313) 446- tive director of the MVCA, said last firms having opened offices here. 1622 or [email protected] MANAGER, DIGITAL CONTENT STRATEGY Nancy week while attending the annual Another strong metric for Hanus, (313) 446-1621 or [email protected] conference of the National Venture Michigan was the growth of mon- care investing, VC topics DEPUTY MANAGING EDITOR Daniel Duggan, (313) 446-0414 or [email protected] Capital Association in San Francisco. ey under management by VC firms SENIOR EDITOR/DESIGN Bob Allen, (313) 446- Jones said her mood contrasted here. Nationally, growth was near- The 32nd annual Michigan 0344 or [email protected] SENIOR EDITOR Gary Piatek, (313) 446-0357 or with the mood of many at the con- ly flat, from a total of $197 billion Growth Capital Symposium is ex- [email protected] ference. Nationwide, VC investing in 2011 to $199 billion. The increase pected to draw more than 400 en- WEB EDITOR Kristin Bull, (313) 446-1608 or [email protected] was off 10 percent last year to $26.5 was 23 percent in Michigan, up by trepreneurs, researchers and sci- WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- billion, and the number of deals $700 million to $3.7 billion. The entists, venture capitalists and 8158 or [email protected] DATA EDITOR Brianna Reilly, (313) 446-0418, was off by 6 percent. amount of money available in VC professional service providers to [email protected] “There’s a sense of doom and funds for new investments the Marriott Eagle Crest in Ypsilan- WEB PRODUCER Norman Witte III, (313) 446- gloom by some of those here, so it’s climbed from $367 million in 2011 ti on Tuesday and Wednesday. 6059, [email protected] EDITORIAL SUPPORT (313) 446-0419; YahNica fun to be out here and talking to to $456 million last year. The event, the brainchild of Crawford, (313) 446-0329 people about everything that’s go- Michigan also saw record levels venture capitalist Ian Bund and NEWSROOM (313) 446-0329, FAX (313) 446- 1687 TIP LINE (313) 446-6766 ing on in Michigan. We’re bucking of investments by angel investors David Brophy, a finance profes- Bund Brophy the trend and actually growing. and those making what are called sor at the University of Michigan, REPORTERS Jay Greene, senior reporter: Covers health care, I’m excited by all the good things pre-seed investments, typically has grown into what is regarded trepreneurial landscape. insurance, energy utilities and the environment. happening in the state,” she said. small but crucial investments to as one of the best venture capital But the star attraction will be (313) 446-0325 or [email protected] Since 2008, the number of invest- get companies up and running. forums in the U.S. the series of pitches for investment Amy Haimerl, entrepreneurship editor: Covers entrepreneurship, second-stage companies and ment professionals working at VC A total of $12.5 million in angel There will be a variety of money by 36 early-stage companies small business. (313) 446-0416 or firms nationally has consistently and pre-seed money, up more than keynote addresses and panel dis- from around the Midwest, most of [email protected] them based in Michigan. Chad Halcom: Covers litigation, higher education, fallen, from 7,497 to 6,125 in 2011 100 percent in two years, was in- cussions, including what’s hot non-automotive manufacturing, defense and 5,887 last year. The number of vested in 40 companies. and what’s not in health care in- Registration is still available at contracting and Oakland and Macomb counties. VC firms in that time has fallen The MVCA was founded in 2002 the door Tuesday morning for (313) 446-6796 or [email protected] vesting, how the Patient Protec- Tom Henderson: Covers banking, finance, from 882 to 841. and has grown to 250 members. tion and Affordable Care Act will $495. For more information, go to technology and biotechnology. (313) 446-0337 or The national numbers are in Tom Henderson: (313) 446-0337, impact medical technology and http://michigan-gcs.com/agenda/ [email protected] Kirk Pinho: Covers real estate and the city of sharp contrast to that in Michigan. [email protected]. Twitter: venture investing, and how index.html. Detroit. (313) 446-0412 or [email protected] Since 2008, the number of profes- @tomhenderson2 Michigan is transforming its en- — Tom Henderson Bill Shea, enterprise editor: Covers media, advertising and marketing, the business of sports, and transportation. (313) 446-1626 or [email protected] Nathan Skid, multimedia editor. Also covers the food industry and entertainment. (313) 446-1654, [email protected] Dustin Walsh: Covers the business of law, auto suppliers and steel. (313) 446-6042 or Insurance: Employers, economy help ease increases [email protected] Sherri Welch: Covers nonprofits, services, retail and hospitality. (313) 446-1694 or ■ From Page 3 [email protected] LANSING BUREAU er copayment and deductible plans. ness program, with 80 percent of- The McGraw Wentworth survey Chris Gautz: Covers business issues at the Capitol For example, contributions by SURVEY FINDINGS fering some wellness initiatives. also found that 91 percent of partici- and utilities. (517) 403-4403 or [email protected]. employees for family PPO plans “We communicated and imple- pants plan to continue offering ADVERTISING Highlights of the 2013 report, based SALES INQUIRIES (313) 446-6052; FAX (313) will increase 4 percent, to $353 per mented a three-year strategy to health benefits to full-time employ- 393-0997 on survey responses from 440 SALES MANAGER Tammy Rokowski month from $338, said the survey. Southeast Michigan companies: bring employee cost-sharing in ees in 2014, when the Patient Protec- HMO family contributions will line with the industry benchmarks tion and Affordable Care Act begins SENIOR ACCOUNT EXECUTIVE: Matthew J. Langan rise 6.5 percent this year, to $293. (70 percent employer with 30 em- to kick in employer and employee Monthly employee contributions ADVERTISING SALES Christine Galasso, Jeff Of 440 surveyed companies, 70 per- ployee cost-sharing) while still of- health insurance mandates. In 2012, Lasser, Dale Smolinski, Sarah Stachowicz for family HMO coverage cent of employees and their depen- fering a very good package that only 85 percent of employers were CLASSIFIED SALES Angela Schutte, manager, 2012: $275 2013: $293 (313)-446-0351 dents are in PPO plans. didn’t hamper recruiting and re- sure they would keep providing (U.S. average: $370 in 2012) EVENTS DIRECTOR Nicole LaPointe McLaughlin said McGraw Went- taining employees,” Dodge said. health benefits, the survey said. DIRECTOR, INTEGRATED MARKETING Eric Cedo worth’s most aggressive companies “At the same time, we brought Konal said Mercer’s survey indi- SALES PROMOTION MANAGER Karin Pitrone in reducing business health costs Monthly employee contributions our dental insurance to benchmark cated that 7 percent of employers ASSISTANT EVENTS MANAGER Kacey Anderson for family PPO coverage SENIOR PRODUCER FOR DIGITAL/ONLINE — known as TrendBenders — have (60 percent employer/40 percent with 500 or more employees might 2012: $338 2013: $353 PRODUCTS Pierrette Dagg been long-term adopters of con- employee), which was originally consider terminating their group MARKETING ARTIST Sylvia Kolaski (U.S. average: $391 in 2012) sumer-driven health plans, which 100 percent employee-paid, he said. health plan coverage. SALES SUPPORT Suzanne Janik, YahNica Crawford are high-deductible health plans Dodge said the wellness incen- But Mercer also found that 56 PRODUCTION MANAGER Wendy Kobylarz that could offer health savings ac- Monthly employee contributions for tive program encourages employ- percent of employers are interest- CUSTOMER SERVICE family consumer-driven health plans counts to employees, and those ees to participate in a biometric ed in private health insurance ex- PRODUCTION SUPERVISOR Larry Williams with wellness programs designed 2012: $209 2012: $227 screening, or blood draw, that re- changes, including Mercer’s Mar- MAIN NUMBER: Call (877) 824-9374 or write (U.S. average: $259 in 2012) [email protected] to help identify medical problems sults in a health score. Depending ketplace, Konal said. SUBSCRIPTIONS $59 one year, $98 two years. Out of state, $79 one year, $138 for two years. and encourage healthy lifestyles. on the score the employee re- Under a private exchange, com- Outside U.S.A., add $48 per year to out-of-state TrendBenders, a subset of Mc- Full-fledged wellness programs ceives, he or she must either main- panies give employees a fixed dol- rate for surface mail. Call (313) 446-0450 or Graw’s survey participants repre- 2012: 11% 2013: 10% tain or improve to receive a lar amount to purchase insurance. (877) 824-9374. SINGLE COPIES: (877) 824-9374 senting 96 companies, expect to de- monthly premium incentive. If the employee selects a plan on REPRINTS: (800) 290-5460, ext. 125; crease plan costs an average of 1 Limited wellness programs SmithGroup has 830 employees the exchange that exceeds that (717) 505-9701, ext. 125; or lindsay.wilson @theygsgroup.com percent in 2012 and 2013, McLaugh- 2012: 39% 2013: 37% nationally, including 240 in South- amount, the employee would make TO FIND A DATE A STORY WAS PUBLISHED: lin said. east Michigan, with 1,382 employ- up the difference out of pocket. (313) 446-0406 or e-mail [email protected] “They have had more time for Employers offering three-tiered ees and dependents enrolled in its Over time, companies would have CRAIN’S DETROIT BUSINESS IS PUBLISHED BY payoffs (and return on investment) copayment prescription drug plans group benefits plan. It offers two more control over their annual CRAIN COMMUNICATIONS INC. in terms of managing their costs,” Blue Cross PPO plans, and HMO health care costs. CHAIRMAN Keith E. Crain 2012: 60% 2013: 64% PRESIDENT Rance Crain she said. “Their employee contribu- plans offered by Blue Care Network For 2014, McLaughlin said, com- TREASURER Mary Kay Crain tions and median deductibles are a Note: Prescription copays for three-tiered and Health Alliance Plan. panies should familiarize them- Executive Vice President/Operations William A. Morrow little higher than the survey aver- PPO plans remained the same this year at Nationally, employer health care selves as much as they can about $10 for generic drugs, $30 for formulary Vice President/Production & Manufacturing age.” costs are projected to rise 5 percent new regulations going into effect Dave Kamis (approved by benefit plan) brand-name Chief Information Officer To reduce plan costs, many com- drugs and $60 for non-formulary brands. this year, after a 4.1 percent in- under health reform. Paul Dalpiaz panies are using higher emer- Source: McGraw Wentworth 2013 crease in 2012, according to Mercer “There are a lot of extremely Chief Human Resources Officer gency room and prescription drug Southeast Michigan Mid-Market Group LLC. technical compliance require- Margee Kaczmarek Benefits Survey G.D. Crain Jr. Founder (1885-1973) copayments, and spousal and to- Jerry Konal, health and benefits ments, some that will have a huge Mrs. G.D. Crain Jr. Chairman (1911-1996) bacco-use surcharges, all key dent of human resources. practice leader at Mercer’s Detroit impact financially,” she said. EDITORIAL & BUSINESS OFFICES: 1155 Gratiot Ave., Detroit MI 48207-2732; strategies adopted over the past In 2013, Dodge said, SmithGroup office, said employers that have For example, employers with 50 (313) 446-6000 several years, said McLaughlin. is predicting that health costs will been most aggressive in reducing or more qualified employees need Cable address: TWX 248-221-5122 AUTNEW DET CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is One TrendBender, SmithGroup drop 3.7 percent after rising 8.5 per- costs have a 9 percent lower health to more effectively track hours of published weekly, except for a special issue the third JJR, a Detroit-based architecture cent last year and 2 percent in 2011. benefit per employee cost than oth- part-time or seasonal workers to week of August, and no issue the third week of December by Crain Communications Inc. at 1155 firm, implemented a three-year Wellness programs generally er employers. determine if they average more Gratiot Ave., Detroit MI 48207-2732. Periodicals group benefit plan in 2011 with a For example, employers that use than 30 hours per week, the defini- postage paid at Detroit, MI and additional mailing have higher up-front costs and take offices. POSTMASTER: Send address changes to wellness program and health im- three years to generate cost-saving health management tools such as tion of a full-time employee who CRAIN’S DETROIT BUSINESS, Circulation provement incentives that has employee cost sharing, disease or must be offered health coverage. Department, P.O. Box 07925, Detroit, MI 48207- and productivity improvement 9732. GST # 136760444. Printed in U.S.A. been paying dividends in lower benefits, McLaughlin said. The sur- care management spend $10,337 Jay Greene: (313) 446-0325, Entire contents copyright 2013 by Crain health plan cost increases, said Ed per employee compared with [email protected]. Twitter: @jay- Communications Inc. All rights reserved. vey showed 20 percent of surveyed Reproduction or use of editorial content in any Dodge, the company’s vice presi- employers offer a complete well- $11,226 for those that do not. bgreene manner without permission is strictly prohibited. 20130520-NEWS--0026-NAT-CCI-CD_-- 5/17/2013 5:57 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS May 20, 2013 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF MAY 11-17

has to buy the remaining erica Bank during the first 41.5 percent of Chrysler Beaumont chiefs OLD AS NEW six weeks of the Major owned by the United Auto League Baseball season — Davidson clan Workers retiree health care ask to reconsider fifth among the 19 MLB sta- fund. The two sides are dis- diums with corporate puting the price in court. names — according to data Henry Ford merger from Ann Arbor-based divides over Karmanos’ wife un-cancels Joyce Julius & Associates ive clinical service Inc. his retirement gala chiefs at Royal Oak- Revenue for Detroit’s F based Beaumont Health three casinos was down 2.7 What’s the wife of a poor System delivered a letter percent in April compared foundation — well, not so poor — re- asking its board of directors with the same month of tired executive to do when to reconsider a proposed 2012 and down 10.9 percent petition to split Detroit Free Press published her husband rides off into merger with Detroit-based from March 2013. the $1 billion-plus last fall in which Ethan the sunset without what she Henry Ford Health System, A William Davidson Davidson said his father believes is his proper due? sources told Crain’s. Three Foundation into two pieces had asked him to move back Go public, was the deci- Beaumont board members OTHER NEWS to Detroit to be part of the was dismissed by Oakland sion made last week by Da- voted to block a vote to re- On June 3, Detroit- foundation and that he had County Probate Court last nialle Karmanos after Com- consider the merger, the based nonprofit Hatch De- had extensive conversa- week for lack of jurisdic- puware Corp., the company sources said. troit will begin accepting tion, but the family differ- tions with him about its her husband, Peter, co- ANDREW TEMPLETON The ship’s bell from the SS entries from aspiring entre- ences that led to the request mission. founded 40 years ago, can- The foundation was cre- N THE MOVE City of Detroit III is displayed preneurs wanting to open a are likely to continue. celed a retirement gala orig- O in a re-creation of the ated in 2005, but not funded retail location in the city. Jonathan Aaron, president inally planned in his honor Jean Meyer was named vessel’s lounge inside the to its $1 billion-plus level To enter, visit www.hatch- of the foundation and co-ex- for June 8. It also canceled a interim president and CEO newly renovated Dossin until the end of 2011. detroit.com and click on ecutor of Bill Davidson’s es- coney dog and Faygo party of Warren-based St. John Great Lakes Museum, which Judge Daniel O’Brien is- “2013 Contest.” tate, had filed for the split, planned for employees in Providence Health System, reopened to the public sued an order Friday dis- Detroit Mayor Dave which was opposed by attor- Campus Martius on June 6. from president of hospital Saturday on Belle Isle. For a missing the case, but Aaron photo gallery, visit Bing announced he will not neys representing Karen “When Pete left the com- operations and executive still has the option to appeal www.crainsdetroit.com. seek a second full term in of- Davidson, Aaron’s mother- vice president of the sys- the decision to the Michigan pany, they fice but will explore a bid for in-law and Bill Davidson’s didn’t even tem. Outgoing President Court of Appeals or refile in Cincinnati Police Wayne County executive. widow; and Ethan Davidson, have a big and CEO Patricia Maryland Roy Roberts Delaware, where the foun- Chief James Craig said he , state-ap- Bill Davidson’s son. paper card will become president of dation is incorporated. will take over the Detroit Po- pointed emergency manag- The records were sealed, health care operations and Detroit Public Schools in the lobby lice Department er for , so those involved in the COO for St. Louis-based As- by July 1. from em- Craig, who got his policing has postponed plans to step court action weren’t talk- Speculation accelerates ployees,” cension Health in July. down by up to six months. ing, but others with knowl- Troy-based Flagstar start in Detroit in 1977, will on Fiat HQ location Danialle replace Ralph Godbee. Former Detroit Mayor edge of the family said ten- Karmanos Bancorp Inc. announced Kwame Kilpatrick requested sions have been growing As news continues to sur- Karmanos told The De- that Alessandro DiNello has in Detroit federal court that among foundation board face about Fiat Group consid- troit News Wednesday, the been appointed president COMPANY NEWS a judge throw out his cor- members, most of whom are ering a move of its head- same day she emailed the and CEO of the bank hold- ruption conviction, claim- General Motors Co. said related, since soon after quarters to the U.S., the Compuware board, excori- ing company and CEO of its ing he was the victim of next question is where. it will spend $100 million to Davidson’s death. ating it for the decision. subsidiary, Flagstar Bank. media bias. Local real estate sources build a data center in Mil- The issue appears to be “It was canceled, and now DiNello, president of the Nation of Islam leader have speculated that if Fiat bank since December, in ford as part of a reorganiza- differing beliefs about who I have un-canceled it,” she Louis Farrakhan told the De- does move, some opera- both positions will replace tion of information technol- is the keeper of Davidson’s said of the gala. “I’m using troit City Council Friday that tions might move to Troy, Michael Tierney, who will re- ogy operations. philanthropic vision. Dur- my savings, everything I it’s time for his movement ing his lifetime, Davidson’s Auburn Hills or Detroit. sume his former role of ex- Detroit-based auto have, and I’m even selling to invest in the city where philanthropy was notable CEO Sergio Marchionne is ecutive vice president of lender Ally Financial Inc. things to pay for the party.” it was founded more than for its focus on Israel and evaluating the switch from personal financial services. moved closer to repaying Perhaps she could sell 80 years ago. other Jewish causes, as well Turin, Italy, where Fiat was Ananias Diokno, M.D., its government bailout as it AAA Michigan will do- some stock. According to as Michigan-based projects. founded in 1899, to the U.S. Beaumont Health System’s reached agreement with nate $23,500 to the Detroit Compuware’s most recent One narrative says Aaron as the carmaker’s revenue executive vice president creditors of its bankrupt Public Safety Foundation to proxy statement, she owns had grown close to David- and profit center shifts to and chief medical officer, mortgage unit. pay for the inspection of 20 480,504 shares worth about son over the years and that North America, Bloomberg will end administrative du- A federal judge or- aerial ladders and 4,600 feet $5.4 million at Friday’s Davidson had mentored reported last week. ties June 1 and retire Sept. dered Midland-based Dow of ground ladders for the opening price of $11.30. Aaron regarding his philan- Real estate brokers point 1. His successor is David Chemical Co. to pay Detroit Fire Department. thropic vision for several to office space in Troy or Peter Karmanos owned Wood, M.D., president of $1.21 billion in damages af- The University of Michi- years before he died and Detroit, or available vacant 6.1 million shares of stock, Beaumont Physician ter it lost a class-action law- gan board of regents ap- that Aaron believes some land near Chrysler Group worth about $69 million. In Partners, Royal Oak. suit that accused it of con- proved a $13.5 million field board members want to de- LLC’s headquarters in retirement, he’ll be paid a Sean Burke was named spiring to fix prices. hockey stadium and team viate from that vision. Auburn Hills, as possibili- consulting fee of $600,000 a senior vice president of Highland Park-based center, along with other Another might be reflect- ties. Before any HQ deci- year for six years, plus the leasing at Bedrock Real Es- marketing and distribu- athletic department pro- ed in an interview with the sion can be decided, Fiat use of two cars. tate Services, the real estate tion-services company Bud- jects, the school said. arm of Dan Gilbert’s Rock co Holdings Inc. said it ac- Officials said no one Ventures LLC. Burke was quired Treasure Island, was injured Friday when vice president of Philadel- Fla.-based South Shore Ven- someone apparently threw phia brokerage firm McDe- ture Enterprises LLC, which a Molotov cocktail at the vitt Co. specializes in direct mar- Grosse Pointe Park home of Ara Topouzian was keting to senior citizens. Gary Van Elslander, presi- BEST FROM THE BLOGS named CEO of the Troy The deal was characterized dent of Warren-based Art Chamber of Commerce. He by Budco as being for less Van Furniture Corp. Police READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS had been Novi’s economic than $20 million. told Van Elslander that a development director and Ann Arbor-based suspect was in custody, an Should Bing court hoop future? Party like it’s 1920 at distillery is the former president and Tecumseh Products Co., two Art Van spokesman told CEO of the business units of Benton the Detroit Free Press. Detroit Mayor Dave There is no Farmington/Farmington Hills Harbor-based Whirlpool Bing’s“ future plans indication“ that behind Chamber of Commerce. Corp. and a division of Dan- were a topic of the prison-like door and James Lentini was ish parts supplier group OBITUARIES conversation — and a graffiti-marred walls of named senior vice president Danfoss A/S will pay about Jerry Luptak, longtime joke — at a breakfast an Eastern Market for academic affairs and $41 million combined to set- gathering of local building, workers are attorney, developer and political leaders. transforming a former provost of Oakland University, tle their portions of a De- partner at Farmington slaughterhouse into a pending approval by OU troit civil lawsuit alleging Hills-based Beztak Co., died ” Prohibition-themed trustees. Lentini, dean of the price-fixing in the sales of May 7. He was 90. micro-distillery. School of Creative Arts at compressors. William Phillips, founder Miami University in Ohio, re- The Detroit Tigers’ Com- and chairman of Livonia- Kirk Pinho’s “Big City, Big Deals” blog can be found at Nathan Skid’s restaurant blog, “Table Talk,”” is at places Virinder Moudgil, now erica Park has generated based Phillips Service Indus- www.crainsdetroit.com/section/blogKirkPinho www.crainsdetroit.com/section/blogNathanSkid president of Lawrence Tech- $7.8 million of brand expo- tries Inc., died May 9. He nological University. sure for Dallas-based Com- was 79. DBpageAD_DBpageAD.qxd 4/16/2013 1:27 PM Page 1

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