Focus: Hope Loses Funds, Idles Training

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Readers first for 30 Years Michigan Business Although the grape harvest is unpredictable CRAIN’S due to the weather, Michigan tasting rooms DETROIT BUSINESS are trying new tactics PAGE 35 OCTOBER 12-18, 2015 Focus: Hope loses funds, idles training

By Sherri Welch [email protected] Focus: Hope is suspending new enrollment in its workforce training programs until it secures funding for them, following employee pay cuts and reduced workweeks instituted over the summer. Nearly $3.2 million total in workforce training and related grants from William Jones: the Michigan Economic Development As- CEO says funds not sociation and Detroit Employment Solu- secured for new tions Corp. were not renewed or ex- classes. pired this year. Sources with knowledge of the situation say Focus: Hope did not hit the metrics for at least one state grant that it was awarded through the MEDC’s Community Ventures program for 2014 but lost this year. However, the program’s director, James Durian, said Focus: Hope hit the minimum metrics for the program. But that grant was awarded to two other groups deemed more capable for those programs. The Detroit nonprofit also received extensions on two other grants, one from the MEDC and the other from DESC, to complete the requirements of the grants, those agencies said. “If extensions were granted, both parties agreed extensions were appropriate,” Focus: Hope CEO William Jones

SEE FOCUS: HOPE, PAGE 53 State may pull plug on renewable energy mandates

wind power. Rather, they believe “There are some who believe that Green groups, some businesses opposed A look at DTE Energy and new rules from the federal Environ- we won’t do it unless we’re forced to By Lindsay VanHulle largest utilities, which are required Consumers Energy solar, wind mental Protection Agency requiring do it. I don’t agree,” said Irene Dim- Crain’s Detroit Business/Bridge Magazine under state law to generate electric- projects. Page 51 utilities to reduce their carbon itry, DTE’s business planning and LANSING — Since Michigan’s ity from renewable sources, nearly emissions by 32 percent by 2030 will development vice president. “It’s energy law was adopted in 2008, bil- $3 billion has been invested on mandates that governed the ensure further investments in alter- the right thing to do.” lions of dollars have been spent in wind, solar, biomass and other amount of electricity they produce native energy. Not everyone is convinced. the state’s emerging renewable en- clean power sources across the from renewable sources. Their position has changed in Groups from the Sierra Club to some ergy industry — building infrastruc- state. Detroit’s DTE Energy Co. and Jack- seven years: Both companies sup- large industrial corporations — led ture, adding jobs and lowering Now, the utilities want state law- son-based Consumers Energy say ported including renewable stan- by Benton Harbor-based appliance costs. makers to end the standards that they don’t need mandates to ex- dards when the Legislature ap- With the help of the state’s two contributed to those results — pand their investment in solar and proved the first energy law. SEE ENERGY, PAGE 51

Merging of the Minds We make M&A manageable NEWSPAPER 20151012-NEWS--0002-NAT-CCI-CD_-- 10/9/2015 2:40 PM Page 1

2 CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015

vice president of supply chain and ster the area’s workforce, the Times MICHIGAN manufacturing since 2006, was Herald of Port Huron reported. INSIDE named to head the Walker-based How’s this for a taste of home? THIS ISSUE retailer two days after J.K. Symancyk Galesburg-based Bell’s Brewery Inc. BANKRUPTCIES ...... 6 CALENDAR ...... 46 left to become CEO at Academy has released the first beer ferment- CAPITOL BRIEFINGS ...... 7 Sports + Outdoor , a Texas-based ed in wooden tanks once used by CLASSIFIED ADS ...... 49 sporting and outdoor goods retailer. Stroh Brewing Co. in Detroit, DEALS & DETAILS ...... 45 BRIEFS Spectrum Health plans to move MLive.com reported. Bell’s acquired MARY KRAMER ...... 35 up to 500 employees to a six-story the tanks in 2012 from Stroh after OPINION ...... 8 PNC survey: State biz owners for Flint to switch back to Detroit’s office building being renovated in they had been sitting in a Detroit OTHER VOICES ...... 9 optimistic for short term water system to address a public downtown Grand Rapids’ Arena warehouse for more than 50 years. PEOPLE ...... 48 health emergency and grapple with South neighborhood, MiBiz report- They were transported to Bell’s in RUMBLINGS ...... 54 Michigan owners of small and broader concerns about the effects ed. According to a memo filed with pieces and reassembled. The tanks WEEK ON THE WEB ...... 54 midsize businesses are optimistic of the aging pipes distributing the the city, Spectrum will consolidate were used because wood was used about the next few months, accord- city’s water supply, The Associated employees from two nearby offices. to make the bitter English beers that ing to the annual fall survey con- Press reported. Grand Rapids-based Fox Motors inspired Bell’s new Andrews’ Ale. COMPANY INDEX: ducted by Pittsburgh-based PNC Fi- Flint stopped using water from Group LLC opened the doors to its The National Wildlife Federation SEE PAGE 53 nancial Services Group Inc. the Detroit system last year as a new Fox Ford Lincoln of Chicago deal- sued the federal government, con- Eighty-eight percent of respon- cost-cutting measure, opting in- ership, MiBiz reported. The compa- tending it gives pipeline owners and they pose no threat. dents say they are optimistic about stead for a supply direct from the ny invested about $57 million into operators — such as the company How could northern Michi- their company’s prospects, up a tick Flint River. Residents have since the 145,000-square-foot dealership. that runs twin lines under the gan’s tourist industry not benefit from 87 percent in the spring. Other complained of the water’s bad Charlevoix Area Hospital will Straits of Mackinac — a free pass on from a recent travel story in The positive results: 33 percent expect to smell, taste and appearance, as well soon be known as Munson Healthcare developing legally required plans New York Times headlined “When increase employees’ pay, up from 26 as adverse health reactions. Charlevoix Hospital, after two health for dealing with oil spills into lakes Hemingway Was a Young Fisher- percent in the spring; 31 percent are Snyder said he would ask state care systems reached an agreement and other inland waterways, The man in Michigan”? In traversing the planning to charge higher prices, lawmakers for $9.3 million of the last week, the Petoskey News-Review Associated Press reported. The law- Petoskey and Walloon Lake areas compared to 36 percent; and 77 $12 million needed to reconnect reported. The arrangement will suit accuses the U.S. Department of where the author Ernest Heming- percent expected consumer prices Flint to Detroit’s system through bring the Charlevoix hospital under Transportation of failing to issue reg- way fished a century ago, Times to rise, from 89 percent. next summer. Then the city would the umbrella of the Munson Health- ulations on crafting spill strategies writer John O’Connor gushes over However, only 46 percent of the transition to a new regional water care network, which includes hos- and of allowing companies to oper- what Hemingway called “absolutely owners said they expected an in- authority drawing water from Lake pitals in Traverse City, Cadillac, ate without them. Houston-based the best trout fishing in the country crease in sales, 39 percent expected Huron. He said Flint would provide Grayling and Frankfort. Enbridge Energy Partners LP, which … and the best place in the world to no change, and 13 percent foresaw a $2 million, and the Flint-based The nonprofit Community Foun- operates the lines linking Lake do nothing.” O’Connor is a native decrease; the spring numbers were Charles Stewart Mott Foundation has dation of St. Clair County hopes offer- Huron and Lake Michigan, has said Michiganian, so he ought to know. 53, 43 and 4 percent, respectively. committed $4 million. ing financial incentives will attract Tom Henderson college graduates who have moved CORRECTION MICH-CELLANEOUS out of the area, The Associated Press Snyder wants Flint’s water reported. The foundation plans to On Page 13 of the Sept. 28 issue, Marjorie M. Fisher was incorrectly from Detroit – for now Meijer Inc. named Rick Keyes as offer three $10,000 “reverse scholar- listed as co-chair of the Max M. and Marjorie S. Fisher Foundation. She is a the seventh president in its 81-year ships” early next year to help gradu- vice chair. Gov. Rick Snyder last week called history, MiBiz reported. Keyes, 46, ates with college loan debt and bol-

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CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 3 Analysts: No Going for the green supplier windfall With economy improved, LPGA shoots for success in Michigan; could men’s golf tour follow? in trade accord

By Bill Shea and new sponsors,” he said. “Say there’s a 30 per- [email protected] cent increase (in corporate hospitality sales), that Trans-Pacific Partnership seen as mild plus ast week’s announcement that the might be something that shakes up or speeds up Ladies Professional Golf Association would somebody’s thought process.” By Dustin Walsh changed. Over the past two stage a new tournament in Ann Arbor The cash outlay for a men’s tour event is signif- [email protected] decades, the industry has pushed Lnext May has some wondering when icantly more than the cost of an LPGA event, Last week, 12 nations reached an hard to build parts where the final the men’s pro tour will end its six-year absence making it a tougher sell in Michigan’s still-recov- agreement on the Trans-Pacific product is sold — not only to avoid from Michigan. ering economic climate. Also, the PGA Tour can’t Partnership — the hotly debated tariffs, but more important, to avoid The PGA Tour hasn’t played a regular event in come here unless there’s an opening on its tour- trade deal and potential Obama ad- exchange rate fluctuations during the state since the Buick Open in Grand Blanc nament calendar. ministration swan song — tying the shipment and excessive freight ended in 2009, and there hasn’t been a major Richards estimated an LPGA event costs its U.S. to the Pacific Rim. costs. men’s rotating event since the 2008 PGA Champi- main sponsor about $500,000 to $750,000, while a The accord is designed to level However, economists and trade onship at Oakland Hills Country Club in the playing field for trade among experts view the agreement, which Bloomfield Township. the nations by opening trade and needs to be approved by each coun- Golf insiders say Michigan’s econo- creating consistent environmental try, as positive, even if it’s not the my has improved, and if the new and labor standards. For U.S. ex- transformative event the White LPGA Volvik Championship, sched- porters, the TPP would make 18,000 House hoped. uled for May 26-29 at Travis Pointe tariffs disappear. The TPP would affect trade in as Country Club in Ann Arbor, is especial- But for Southeast Michigan’s au- much as 40 percent of the world ly successful financially, it could turn tomotive industry — which domi- economy. TPP countries include the some heads at the PGA Tour’s Florida nates the list of the state’s largest ex- U.S., Japan, Canada, Mexico, Aus- headquarters. ports — the headline-grabbing tralia, Brunei, Chile, Malaysia, New “I definitely think this market is figure is unlikely to move the needle Zealand, Peru, Singapore and Viet- ripe for more professional golf,” said much on trade. nam. Keith Karbo, CEO of Ann Arbor-based That’s partly because the eco- sports marketing firm Red Arrow Part- RIVAN STINSON nomics of manufacturing have SEE TRADE, PAGE 52 nerships who is the originator and The new LPGA Volvik Championship will be played May 26-29 at Travis tournament director of the LPGA Pointe Country Club in Ann Arbor. Volvik Championship. “I think what this is going to do is going to revive interest in midlevel event on the PGA Tour, such as the now- professional golf tournaments in Southeast defunct Buick Open in Grand Blanc, is $5 million Once all the rage,Japanese Michigan.” to $6 million. How the LPGA Volvik Championship plays out Once a tournament is on the calendar, the on the business side will be something the men’s challenge is selling corporate sponsorships for classes make culture shift tour keeps its eye on, said Dave Richards, owner things such as hospitality tents and chalets on the of Bloomfield Hills-based Resort & Golf Marketing. “The PGA Tour always is looking for new sites SEE GOLF, PAGE 50 By Marti Benedetti [email protected] An emphasis on understanding Japanese culture to be successful in business relations — all the rage among Detroit-area companies in the 1980s and into the early 1990s — has evolved over time. LOOKING BACK: In Classes three decades ago might have focused on the Oct. 14, 1985, the proper way to hand over a business card or the issue, Crain’s etiquette around gift giving. But culture classes now reported that teach how to work with a Japanese company on, say, Detroit co-designing a product, said Rochelle Kopp, founder companies were “I definitely think this and managing principal of Chicago-based Japan In- studying market is ripe for more tercultural Consulting, which helps foreign companies Japanese culture work with each other. and customs to professional golf .” “Three or four times a year, we offer a class in the better conduct Keith Karbo, CEO of Red Arrow Partnerships, originator Detroit area called “Working Effectively with Japan- business with and tournament director of LPGA Volvik Championship ese,” she said. Her clients are often suppliers whose Japanese customers are Japanese auto companies, she said. automotive On the flip side, clients also are Japanese compa- companies. That nies that want to help their U.S.-based Japanese em- trend has ployees understand American culture. changed That’s a switch from when U.S.-based Japanese considerably. More at crains SEE JAPAN, PAGE 52 detroit.com/30

MUST READS OF THE WEEK It’s not all roses in retail Legal M&A heats up The scoop on selling John Wangler, the former UM Six acquisition deals involving What was the secret ingredient to finding quarterback, is working through the local law firms have closed so the right buyer for Garden Fresh? obstacles of sports apparel sales, far this year, Patience. See this week’s Second Stage Page 4 Page 50 report, Page 41 20151012-NEWS--0004-NAT-CCI-CD_-- 10/9/2015 2:41 PM Page 1

4 CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 These days,Wangler strives for success in the retail game

By Bill Shea [email protected] John Wangler found success — and pain — in a career as a quarterback at the University of Michigan. He won a Rose Bowl during the 1980 season, but a year before he had a knee wrecked when fearsome future NFL Hall of Famer Lawrence Taylor sacked him during a bowl game. Today, Wangler has found success in business, owning a wholesale apparel and footwear supplier, but he has also discovered a different kind of pain trying to stake out a GLENN TRIEST retail space in Royal Oak. John Wangler(left) knows something Wangler and his wife, Lorraine, in about successful game plans, having led April 2014 opened Co. 512 just north the University of Michigan football of 11 Mile Road and have been try- team to a Rose Bowl victory in 1980 and ing to find the right blend of licensed having built a wholesale apparel and team and athletic merchandise to footwear supplier. Now he’s learning the get the business into the black. X’s and O’s of retail as the owner of Co. “We’re still battling. We’re doing 512 in Royal Oak (Above) . Intellectual Property | Litigation | Technology better month over month,” he said. “We’re not there yet. We’ve got a trucking business and as a manufac- ways to go. I knew this was not turer’s representative before getting going to be a one-year project to be- into the apparel business. come profitable. We’re committed He launched Top Cat in 1999 — Transactional to making this thing work.” its name is derived from previously experience on par Wangler now is pinning his hopes doing business with German on a new nearby development. footwear maker Puma — and before with the major Silicon Foot traffic could improve, he that he worked for Greensboro, Valley law firms. said, once a proposed $48 million Berkley to the rear of the store. N.C.-based clothing giant VF Corp. mixed-use building with 56 apart- In a bid for more retail sales, Co. and its now-defunct Nutmeg Mills – BRAD KANCIGOR,KANCIGOR, ASSOCIATEASSOCIATE GC Synopsys,Synopsys, IncInc ments and a 120-room, five-story 512 is adding more Adidas Origi- brand. Hyatt Place hotel is built nearby at nals, the German sports footwear A Michigan man (and dad) 400 N. Main. Developers have said and apparel maker’s branded fash- it could be open within two years. ion merchandise that uses its origi- Wangler was a quarterback at YOUNG BASILE. Wangler’s belief is that the project nal trefoil logo rather than the ubiq- Royal Oak’s Shrine Catholic High Strategic advisors to the world’s will fuel new activity north of 11 uitous three stripes used since 1997. School and was recruited to Michi- most innovative companies. Mile in Royal Oak. The strategy is to focus more on gan, where he was Rick Leach’s Co. 512 is the consumer-facing retailing lifestyle apparel rather backup until earning the full-time part of his main business, Top Cat than just performance wear for starting job in 1979. ANN ARBOR TROY SILICON VALLEY CHICAGO Sales LLC, which wholesales Adidas sports and workouts. He entered Michigan football and Reebok apparel and footwear to “That segment works perfectly for lore thanks to a game-winning 45- www.youngbasile.com retailers such as Dunham’s Sports Royal Oak,” he said, adding that the yard touchdown pass to Anthony and Dick’s Sporting Goods Inc. store also is expanding its selection Carter to beat the University of Indi- Also, a Top Cat division handles for women and more footwear. ana during the 1979 homecoming uniform and equipment deals for “We’re still playing with our product game. That play sparked UM radio more than 200 high school teams in mix.” broadcaster Bob Ufer’s memorable Michigan and Northeast Ohio, Wan- Co. 512 also carries the popular call: “Johnny Wangler to Anthony gler said. retro sports apparel brand Mitchell & Carter will be heard until another STAFFING SOLUTIONS FOR PROFESSIONALS The overall company, which em- Ness Nostalgia Co. and Kid Rock’s 100 years of Michigan football is ploys 25 people, did about $30 mil- Made in Detroit clothing. played!” Omega has reinvented the standard in the lion in revenue last year, he said. If Co. 512 takes off, expansion to Wangler remains devoted to his Staffing industry. We are the company that Top Cat takes an undisclosed com- Detroit is a possibility, Wangler said. alma mater, and not just because he candidates turn to when they want to pursue mission off that. “I wouldn’t be opposed to doing played there: When the Wolverines their career goals in a respectful, rewarding It was a couple of years ago that something downtown,” he said. and Spartans square off Saturday on environment Wangler determined the time was Football to footwear the football field in Ann Arbor for IT Engineering Medical Accounting/Finance Admin right to open a space. the 108th time, he’ll be in the stands “Having grown up in Royal Oak Wangler didn’t intend to get into as a season ticket holder to watch and seeing the rebirth and revitaliza- the clothing business. He wanted to two of his sons on the Michigan tion of Royal Oak over the past 30 play pro football after his Michigan sideline. Contract and Permanent Recruiting years, I always had the interest in career, but it wasn’t to be: He had His son Jack is a junior wide re- Detroit Lions New No Fee to Try! doing a retail store,” he said. “I tryouts with the , ceiver this season, and son Jared is a thought it would be good to have a York Jets, Dallas Cowboys and even sophomore linebacker. And in the storefront since we have a lot of the the Michigan Panthers of the old Unit- winter, Wangler will watch daughter high school kids and teams coming ed States Football League, where his Halle play for the Wolverines on the through.” former Wolverines teammate An- women’s basketball team. The 10,000-square-foot building, thony Carter would emerge as a Oh, and Wangler’s mother has which has about 1,800 square feet of star. hosted a tailgate party at UM foot- retail space, takes its name from its “I gave it my best. I have no re- ball games for 40 years, he added. address at 512 N. Main. It was previ- grets,” Wangler said. “I’ve always been involved in the ously the old Royal Music building, Wangler, who dabbled briefly in program since I left, to whatever de- Toll Free: 855-90-OMEGA and Wangler said he spent “seven semi-pro football, was a graduate as- gree,” he said. Ⅲ 45000 River Ridge Drive Suite 110 figures” to buy and renovate it. sistant for a few years for Bo Schem- Bill Shea: (313) 446-1626 Clinton Township, MI 48038 He moved Top Cat Sales from bechler and worked for a time in the Twitter: @Bill_Shea19 DBpageAD_DBpageAD.qxd 10/1/2015 4:35 PM Page 1

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6 CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 Meals fuel GPJ’s appetite to acquire Pulse220

By Marti Benedetti several years,” agency; they were the 800-pound ley to New York and more,” Chris town. It grew along with the auto in- [email protected] said Pulse220 gorilla,” he said. Because of his rela- Meyer, CEO of Auburn Hills-based dustry and designed one of the ear- A business relationship plus CEO, founder tionship with GPJ, he further GPJ, said in an email. GPJ also has liest auto shows at the Wayne Gar- many meals, as in traditional rela- and owner Craig learned the business. facilities in London, Stuttgart and dens. It went on to invent the tionships, can sometimes end in a Erlich. “In recent With the sale, Erlich’s new title is Shanghai. automobile turntable and create marriage. months, we got senior vice president and general Meyer said in a news release that mobile marketing tours. A series of twice-a-year break- to talking about manager of GPJ’s Auburn Hills and Pulse220 “fits seamlessly with GPJ’s Pulse220 was started in 1987, has fasts culminated last week in a deal GPJ buying us Nashville, Tenn., locations. GPJ has long history of innovation, creativity 30 employees and expects $20 million for marketing giant George P. John- Craig Erlich: Talks and how that 29 offices and more than 1,300 em- and flawless delivery.” in sales this year. son Co. to acquire Ferndale-based began over would be a one- ployees worldwide. GPJ was founded in Detroit 101 In the coming months, Pulse220 events manager Pulse220. breakfast. plus-one equals The purchase price was not dis- years ago by George P. Johnson. At will close its Ferndale office and “David Drews (executive vice pres- three.” closed. the start, it was a flag-making com- move to GPJ’s Auburn Hills facility. It ident and CFO of George P. Johnson), Erlich said his relationship with “We criss-cross the U.S. with of- pany constructing large flags for the will keep its downtown Detroit office. a bit of a mentor to me, and I have GPJ goes back about 10 years. “We fices from Boston to Auburn Hills, mammoth J.L. Hudson department “I will not only continue to lead been having breakfast together for were the scrappy five-six person Nashville to Los Angeles, Silicon Val- store on Woodward Avenue down- my Pulse folks, but will be joining them with 150 or so GPJ employees,” Erlich said. The Auburn Hills and Nashville locales handle fabrication, banners, ex- hibits and graphics for experiential marketing projects such as auto and trade shows. Pulse220 produced the Detroit Homecoming event Sept. 30- “ WHAT’S DTE ENERGY Oct. 2. Erlich, who was a Crain’s 40 under 40 honoree, said he thinks of DOING TO MAKE IT his employees first when making business decisions. “When David brought it (the sale) up, I thought about how it EASIER ON BUSINESS?” would affect our people and our clients,” he said. “In both cases, it exceeded my expectations.” The new interactive eBill from DTE Energy makes it easy to analyze energy usage and pay your Pulse employees received a new benefits package, but also the op- bill. The new, simple layout shows your usage at a glance, gives you links to energy-saving ideas, portunity to work for Project: World- and lets you pay your bill in a snap. There are even sections speciﬁc to your business that can Wide, a global advertising holding company created in 2010 by GPJ help you understand and manage what you use, and pay. management. It is owned through an employee stock-ownership plan that links it with traditional and digital ad agencies. Meyer would not disclose sales revenue, but Crain’s reported that in 2012, sales revenue was $815.3 million, making it the world’s largest event and experiential marketing Sally Like, Owner company by revenue. Marcile’s Fashions & Bridal Pulse clients include PepsiCo, Ally Bank and Quicken Loans Inc. Meyer said in an email that industry publications and traditional research show “marketers are shift- ing their dollars away from traditional marketing and into a more experiential approach. … Con- sumers crave experiences, not additional interruption.” Pulse220 will remain the name of the promotional product company within GPJ. The rest of the business will be rolled into GPJ operations. Ⅲ

BANKRUPTCIES The following businesses filed for protection in U.S. Bankruptcy Court in Detroit Oct. 2-8. Under Chapter 11, a company files for reorganization. Chapter 7 involves total liquidation. Leisure Time Spas, Billiards & More LLC, 6959 Highland Road, Water- ford Township, voluntary Chapter 11. Assets and liabilities not available. C. Rummel Heating & Cooling Inc., c/o Channing Rummel, 33717 Bayview Drive, Chesterfield Town- ship, voluntary Chapter 7. Assets: $18,860.54; liabilities: $15,768. Natalie Broda 20151012-NEWS--0007-NAT-CCI-CD_-- 10/9/2015 2:42 PM Page 1

CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 7 How to ban microbeads? Lawmakers debate merits of new bill

LANSING — Lawmakers want to tions, supports Outman’s bill. Employer bill of the larger corporation, or fran- stop companies from making and Manufacturers already are work- A state Senate panel last week ap- chisor, unless the two share in de- selling soaps and facial cleansers ing on new formulas that do away proved two bills that would desig- ciding the conditions of the work- with plastic microbeads in Michigan. with the microbeads, the council’s nate a franchise company, not the ers’ employment and direct control However, they haven’t yet decid- Karin Ross testified before the parent corporation, the sole em- of such things as hiring and firing, ed how to do it. House panel. The cosmetics and ployer of his or her workers. discipline and supervision. Proos, A bill pending in the state House personal care industries contribute The bills, introduced last month of St. Joseph, introduced that bill. natural resources committee would LINDSAY roughly $4 billion annually to the by Republican Sens. Jack Branden- Several of Michigan’s biggest ban the use of synthetic plastic mi- VANHULLE state’s economy, she said. burg and John Proos, are in direct restaurant franchise operators sup- crobeads, which are not biodegrad- Capitol Briefings Some lawmakers, including Rep. response to an August ruling by the port the bills. They include Livonia’s able, as exfoliants in personal care [email protected] John Kivela, D-Marquette, said they National Labor Relations Board that Team Schostak Family Restaurants, products such as shower gels, soaps Twitter: @LindsayVanHulle want a stricter standard that bans says both the corporation and fran- which operates Applebee’s, MOD and toothpastes. Environmental all microbeads, as well as a firm def- chisee can be considered “joint em- Pizza and Del Taco chains, and Diver- groups say the plastic beads are so is the rare instance where environ- inition of what it means for a prod- ployers” that share responsibility for sified Restaurant Holdings Inc., the small that they are sneaking mental groups and industry came to- uct to be biodegradable. the franchisee’s workers. Southfield-based owner of Bagger through water treatment facilities gether and said we had a problem.” “I see this as a bill that allows the The approval from the Senate’s Dave’s Burger Tavern and franchise and entering the Great Lakes, where Michigan is joining other states in industry to continue to do exactly commerce committee sends the operator of 60 Buffalo Wild Wings Grill they are ingested by fish. attempting to ban microbeads. Some what they’re doing right now,” bills to the full chamber, where they & Bar locations in five states. But in testimony last week, some proponents are calling for a national Kivela said during this week’s hear- await a final vote. The NLRB’s ruling this summer legislators said they don’t think standard, in part to avoid a patch- ing. “We are the state with the most “It just codifies what’s been a very says the franchise owner and corpo- House Bill 4345 goes far enough. work of regulations between states. to lose. I would rather see us do long-standing relationship between ration are joint employers even if They want the bill to ban all mi- Outman’s bill would phase out nothing than to see this bill pass.” employees and employers in our the parent company isn’t directly in- crobeads, regardless of whether they the use of microbeads starting in Environmental groups, including current franchised business model volved in hiring decisions or super- eventually break down, to prevent December 2017. the Michigan United Conservation here in Michigan,” said Branden- vision. The board lowered the companies from tweaking formulas The Michigan Department of Envi- Clubs, suggested banning all plastic burg, of Macomb County’s Harrison threshold to determine joint-em- just enough to be called biodegrad- ronmental Quality supports the bill microbeads and including a sunset Township. ployer status, requiring a parent able even if that process takes years. as a “common-sense first step,” said clause on the bill, to be revisited as Brandenburg’s bill, Senate Bill company simply to have authority The bill’s sponsor, Rep. Rick Out- Maggie Pallone, deputy director of science and research advances. 492, said the franchise owner will be to set workers’ employment terms, man, said he was caught off guard policy and legislative affairs. Outman said he believes a defini- the sole employer of the workers to even if they don’t exercise it. by the concern. He modeled the bill The bill targets major consumer- tion of “biodegradable” is irrelevant whom it pays wages and benefits The U.S. Chamber of Commerce off legislation that was adopted in products companies such as Cincin- to the discussion. A better bench- unless otherwise outlined in the testified to the state Senate that fran- Illinois. Indiana and Wisconsin have nati-based Procter & Gamble Co. and mark, he said, is whether the prod- agreement with the parent corpora- chise business owners account for also passed similar laws. Ada’s Amway Corp. The Personal Care ucts harm fish and other aquatic tion. more than 260,000 workers in “I really thought this was a no- Products Council, a Washington, D.C.- wildlife. He said he plans to talk to A related bill, Senate Bill 493, Michigan and have a statewide eco- brainer,” said Outman, R-Six Lakes, based industry trade group that rep- the DEQ about whether that stan- specifies that employees of a fran- nomic impact topping $21 billion who lives in Montcalm County. “This resents roughly 600 such corpora- dard could be enforced. chise company are not employees annually. Ⅲ

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8 CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 CRAIN’S DETROIT BUSINESS Family biz: Stories of succession,success very Tuesday morning, April Joseph Horak, director of the Fami- Diez assembles her senior ly-Owned Business Institute at Emanagement team, and Grand Valley State University. OPINION they talk through the issues — the Or, sometimes it’s life’s twists and good, the bad, the ugly — that the turns, an element of serendipity, company is facing. that enables the next-gen family Good communication via this member to see a different vision for standing meeting (and some hard- JENNETTE SMITH the family firm. UAW-FCA misfire: fought company culture change) is Editor’s Notebook Take Jami Moore, who left a ca- how the leader of the second-gener- [email protected] reer in pharmaceutical sales to buy ation company stays up to speed on TWITTER: @Jennette_Smith out her father’s Clinton Township- near-term and longer-term chal- based business, JEM Computer Inc. lenges. Diez, chairman of The Diez Conference on Sept. 29. Their per- (now JEM Tech Group). Her father, Lesson in listening Group in Detroit and vice chair of sonal stories are encouraging; like James, started the company in 1979 Delaco Steel, said that at first, get- Diez, these women ask tough ques- and specialized in ink ribbons and hat we’ve got here is a failure to communicate. ting senior leaders to speak up tions. tape backup for servers. about problems at this meeting For example, when Kathleen Dul Moore moved the company into That memorable line from the movie “Cool wasn’t easy. But after awhile, it be- Aznavorian took the reins of ma- both selling backup media and con- W Hand Luke” could be the best summary of the came more comfortable and is now chining manufacturer Clips & sulting with customers on ways to United Auto Workers union’s misfire in its attempt to per- part of the new company DNA. Clamps Industries, she discovered cut costs to reducing data center suade its members to approve the initial contract proposal It’s tough for second- or third-gen- some troubling pricing decisions. energy use. Business boomed. reached with Fiat Chrysler Automobiles. eration owners of family businesses, Some parts were priced too low to But Moore said that in hindsight, no matter the size. Between techno- justify time spent on stamping, she wishes she had had an opportu- The stunning defeat earlier this month perhaps shows how logical changes to industries, the storing, packaging and distribution. nity to work side by side with her fa- out of touch the UAW brass is with its rank and file. Clearly, need to diversify, management So she got “down and dirty,” as she ther to more formally learn the the two-tier wage system was a major sticking point with turnover, careful attention to prof- describes it, to come up with more business and that the company had many members. itability — and the various ways suc- appropriate pricing. It helped her to a more structured transition. We think it also shows the weakness of the UAW’s rigid, cession planning is structured — also understand the entire produc- Business world rules of thumb, top-down hierarchical style. Unhappy members used social running a family business is compli- tion chain. (Dul Aznavorian also is and research tracked by GVSU, cated. co-owner and president of Fox Hills points to an alarming trend where media to trump the UAW’s own messaging about the virtues Yet making a sustainable plan for Golf & Banquet Center.) succession planning often comes of the contract. the future, and one that includes Besides understanding the off the rails between second gen The new agreement reached last week to avert a strike at more modern management prac- processes and work flow at a family- and third gen, then even more FCA undoubtedly has advantages for both sides. Now the tices (like highly effective commu- owned business, there’s also that in- abruptly from third gen to fourth spotlight is on how the UAW will persuade members it has nication) is at the top of the priority tangible family pull, which helps gen. Less then 5 percent of fourth- list. More than 70 percent of global drive the second- or third-gen CEO to gen firms survive. been listening. GDP ultimately stems from family roll up his or her sleeves and some- The body of research and writing Whether the contract is approved or not, this is a good les- businesses, according to Min- times tackle the most daunting rein- on the right way to handle succes- son for management and labor: Digital tools allow voices to neapolis-based Family Enterprise ventions. sion planning, the right way to forge be heard — and loudly — and decide the terms of the con- USA. So the business world is Effective — and “affective,” due a strategic vision and the right way to versation. counting on these “next-gen” lead- to the emotional pull — leaders overcome common business stum- ers to get it right. have a strong belief in the compa- bling blocks is immense. But reading I had the pleasure of leading a ny’s core values and a burning de- about it versus actually doing it are discussion among next-gen wom- sire to lead the firm. They want it; two different things. I salute the sec- Firms find windfall in disasters en in family-owned businesses at they’ve been working toward their ond-gen leaders who are doing their the Great Lakes Women’s Business goals from childhood, explains homework — and getting it right. Ⅲ Flooding in the Carolinas. Fires in drought-stricken Western states. LETTERS Disasters bring opportunities. At least that’s the lesson in Sherri Welch’s Oct. 5 report on local owners of Troy-based Sig- nal Restoration Services buying a majority share in a Florida- Robots in workforce need to be on a short cord based disaster recovery firm, PuroClean. Editor: Where is the oversight for balanc- Rebuilding after natural disasters is a growing business. Send your letters: Crain’s Detroit Is anyone else alarmed that ro- ing human labor and robots? Is gov- The investment gives Signal Restoration a nationwide Business will consider for bots are replacing the American ernment regulatory oversight the publication all signed letters to the presence and international operations in Canada. And the labor force at an accelerating rate? only logical solution? Stiff competi- editor that do not defame Florida company plans to expand in Europe, converting in- (Robotics has changed, but auto in- tion will keep businesses from individuals or organizations. Letters dependent brands to either Signal or PuroClean. dustry’s interest hasn’t, Sept. 28). being responsible. may be edited for length and clarity. Private equity seems to be knocking at the doors of restora- The human workforce should be According to Wall Street, if an tion companies. They’re reading long-term weather reports, alarmed because automobile com- Email: [email protected] American business is not growing too. Ⅲ panies in the not too distant future its revenue, its earnings per share or will not have to worry about UAW its productivity, it’s dying. That phi- strikes, since robots don’t strike. Ac- labor cost.” losophy will ensure that the labor cording to the article, 50 percent of Ignatowski also stated that 99 force will never again be a business- industrial robots are purchased by percent of Prism’s precision plastic es’ top priority. Salary cost is corpo- the automobile companies. As components are never touched by a rate America’s largest controllable companies replace human beings human hand. expense. Therefore, replacing the with robots — which do not buy Robots are replacing blue- and labor force will become the focus. homes, groceries, clothing, cars, etc. white-collar employees in every Because of robots, business CEOs — our economy, which depends on sector of business. As Mike Cicco, now have unlimited options for consumer purchases, will suffer. general manager for Fanuc America staffing. It amazes me that manufacturers Corp., states, “Robots are simply What was science fiction a few are boasting of their elimination of more capable, vastly more intelli- decades ago has now become reali- their labor force. In the article, Jeff gent and much smaller than they ty. Robotics and artificial intelli- Ignatowski, director of sales and used to be. This has really opened gence are advancing much too marketing for Prism Plastics LLC, up the potential for more produc- quickly. We need to step back and stated that “Robotics and automa- tivity for manufacturers.” think of the ramifications of robots tion is a necessity for the way we Americans are hopeful that man- and artificial intelligence on hu- run our business. Part of our strate- ufacturing is returning to American manity. The cork is out of the bottle. gy is to avoid labor as much as pos- soil, but in reality, robots will be the sible, allowing us to compete glob- focus for staffing the plant, not Phil Mitchell ally with technology by eliminating human labor. Detroit 20151012-NEWS--0009-NAT-CCI-CD_-- 10/9/2015 12:06 PM Page 1

CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 9 Michigan’s job creation rate outpaces U.S.average

ichigan’s economy shed publishing, broadcasting, movies professional and business services. The bigger picture is that profes- jobs in the last U.S. ex- and telecommunications, was the Management, scientific and techni- sional and business services is now M pansion, an unprecedent- only private supersector to decline, cal consulting services; computer 15 percent of Michigan’s total em- ed development that is likely to be dropping from 56,300 to 54,600. systems design and related services; ployment, while manufacturing has studied by future generations of Government employment also de- and employment services are need- dropped to 14 percent. Yet both sec- economists. But Michigan’s jobs clined from 647,200 to 589,800. ed to develop and implement new tors have created jobs at percentage picture has reversed dramatically in Michigan’s professional and technologies, ensure compliance rates greater than the U.S. average the expansion that began six years OTHER VOICES: business sector has been a standout with government regulations, pro- in the current expansion. ago, with the Great Lakes State out- Greg Kaza within these supersectors. The BLS’ vide computer security and devel- The factors contributing to the pacing the national average. The writer is executive director of the Monthly Labor Review, in 2009 (No- op, improve and maintain comput- previous expansion’s loss of jobs One subplot is that Michigan is Arkansas Policy Foundation, a think tank vember), described the compo- er networks.” and the current period’s growth succeeding at creating professional, founded in 1995 in Little Rock. nent’s employment demand as fol- Critics note that not all profes- will be debated by economists. The scientific and technical jobs — a lows: sional and business sector jobs are more important point is that long-standing policy goal — even as Manufacturing grew from 440,600 “The push to keep businesses high-paying. The component in- Michigan’s economy is creating manufacturing declines as a per- to 598,100. competitive and profitable will includes administrative and support jobs at a rate greater than the U.S. centage of state total nonfarm em- Information, which includes crease demand for services within work such as temporary help. average. Ⅲ ployment. Economic expansion is the natural state of the U.S. economy. An expansion occurred between No- vember 2001 and December 2007, and another began in June 2009, according to the National Bureau of Economic Research in Cam- bridge, Mass. The nonprofit NBER is the arbiter of the U.S. business GIVE A GIFT THAT cycle within the field of economics. The NBER’s Business Cycle Dat- LASTS FOREVER. ing Committee does not define a recession as two consecutive quarters of declining gross domestic product: “Rather, a recession is a signifi- The Community Foundation for Southeast Michigan ensures your gift helps meet the needs in our cant decline in economic activity and spread across the economy, lasting communities today tomorrow. We build endowment — permanent community capital — and more than a few months, normally offer the maximum tax benefits under federal law for your gift. For 31 years, we’ve been helping visible in real GDP, real income, em- people in our region make a difference. Let us help you make a difference for generations to come. ployment, industrial production, and wholesale-retail sales.” Donate now at cfsem.org/gift or contact us at 1-888-WE ENDOW to learn more. Among those, nonfarm payroll employment is the broadest indica- tor at the state level. Payroll employment is reported monthly. In essence, this represents a snapshot in time versus the series of pictures that emerges when the metric is analyzed across an entire business cycle. How has Michigan’s jobs market fared? U.S. nonfarm payroll employment expanded from 131.2 million to 138.4 million in the 2001-07 expansion, BLS data show. Michi- gan employment, by contrast, contracted from 4.5 million in Novem- ber 2001 to 4.25 million in December 2007. It continued to contract in the Great Recession, dropping to 3.84 million in June 2009, when the NBER determined the next expansion started. Michigan payroll employment has expanded by 442,500 jobs since June 2009, to 4.28 million in August 2015. Michigan’s 11.5 percent job creation rate in the current expansion has outpaced the U.S. average, up 8.6 percent in the same period. Michigan’s advance has been broad-based, with all but one private industry supersector adding jobs in the period. Trade, transportation and utilities, Michigan’s largest supersector, expanded from 715,700 in June 2009 to 768,200 in August 2015. Ed- ucation and health services, the second-largest, grew from 610,600 to 660,200. Professional and business services, the third in size, expanded from 491,600 to 646,700. 20151012-NEWS--0010,0011-NAT-CCI-CD_-- 10/8/2015 4:40 PM Page 1 20151012-NEWS--0010,0011-NAT-CCI-CD_-- 10/8/2015 4:41 PM Page 2 20151012-NEWS--0012-NAT-CCI-CD_-- 10/8/2015 5:05 PM Page 1

12 CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015

40 under Abir Ali, 37 40 Program manager, NEIdeas, New Economy Initiative, Detroit

“I am inspired by small investments with the BIGGEST ACHIEVEMENT: Launched NEIdeas power to yield big returns,” said Ali. using entrepreneurs and others as ambassadors for This year, her team drew in nearly 500 business the small-business grant program, which has given applicants, partly by sharing stories of first-year $500,000 to small businesses in Detroit. winners, who showed up at outreach events. An- other 32 grantees will be announced in November. CURRENT GOAL: Design and execute more cre- With her husband, Andre Sandifer, Ali runs the ative investments in Detroit, especially in buildings. furniture design firm Ali Sandifer Studio. She’s the Abir Ali’s role at the New Economy Initiative’s designer and creative director, and he is the crafts- NEIdeas could be considered that of a player- man building credenzas and tables in their 1,000- coach; she leads a team that works with small busi- square-foot Russell Industrial Center workshop. nesses in Detroit, Hamtramck and Highland Park. They live just a few miles away in the Boston- At the same time, she co-owns a small furniture de- Edison neighborhood with three sons. sign shop. Ali grew up in Detroit, the daughter of Lebanese So when developing her team for the small- and Pakistani immigrants. After graduate school, business engagement and grants program, she she spent six years in Chicago as an architect work- chose entrepreneurs “who are young and ener- ing on affordable housing and starting her furni- getic” and work part time. “There’s so many people ture business. Yet she felt drawn back to Detroit who make magic happen at NEIdeas,” she said. and applied to become a Detroit Revitalization Fel- She supervises a $1.4 million annual budget and low, which brought her to the Hudson-Webber Foun- works with a half-dozen people, along with 25 con- dation. tract “ambassadors” from local organizations. That led to NEIdeas, where she took a concept The results of their outreach were impressive: and figured out how to make it work. 600 businesses applied for the first NEIdeas grants, Ali’s dreams focus on improving Detroit through and 30 received $10,000 grants and two received specific people, buildings and physical places. “I’m $100,000 grants. Many bought equipment that still a designer at heart,” she said. would spur growth. — Vickie Elmer

Aaron Belen, 32 President, AFB Hospitality Group LLC and AFB Investments LLC, Berkley

BIGGEST ACHIEVEMENT: Realizing annual revenue of $3 million in just a year with the success of his restaurant Bistro 82 and nightclub Sabrage.

CURRENT GOALS: Launch more restaurants and venues; acquire commercial real estate in prime Brooke downtown areas. Bowers, 35 After graduating from college, Aaron Belen ex- Director of continuous pected to work in commercial real estate. improvement for the Americas, Things didn’t go as planned, and he ended up Johnson Controls Inc., falling back on his party planning experience — something he did in college to earn extra money. Plymouth Township After owning restaurants and bars from 2009 to 2012, Belen had the idea of bringing a one-stop din- BIGGEST ACHIEVEMENT: Leading a gram,” Bowers said. ing and nightclub experience to metro Detroit. $500 million program to redesign and Bowers hit the internal goal of “0-0- He formed AFB Hospitality Group, which runs supply seats for the Ram truck while 100-100-30,” or zero injuries at plants, the Royal Oak modern French restaurant Bistro 82 meeting all internal and external targets. zero quality issues, 100 percent on-time and the nightclub upstairs, Sabrage. delivery and 100 percent on-budget in Belen also owns and manages AFB Investments, CURRENT GOAL: To lead a revamping the first 30 days after a launch. a commercial developer that owns 100,000 square of the manufacturing processes at North The success propelled Bowers into a feet of real estate. and South American plants and meet a new role at JCI. Since November 2014, Belen invested $5 million in Bistro 82 and $50 million cost-savings goal. she’s served as the director of continu- Sabrage, which opened in February 2014. ous improvement for the Americas. Her Bistro 82 received the Detroit Free Press Readers’ When FCA US LLC charged supplier new job is to revamp manufacturing sys- Choice Best New Restaurant designation this year. Johnson Controls Inc. with redesigning its tems at JCI’s North and South American Belen was voted Businessman of the Year for 2015 seats for its flagship pickup, the Ram, plants to produce $50 million in costs by the Royal Oak Chamber of Commerce. Brooke Bowers led the program. savings. Revenue for AFB Hospitality last year was $3.1 As program manager, Bowers was in Bower also serves as president of JCI’s million, and this year’s total is on track to reach $3.5 charge of keeping the 30-member team Women’s Resource Network. In the past million. His real estate holdings, which total six on track, ensuring the supplier met its two years, the initiative has raised properties, yielded $1.5 million in revenue last year. goals for the program — the company’s $30,000 for the University of Michigan Belen recently closed on 511 S. Main St. in Royal largest product launch in 2014. Comprehensive Cancer Center for breast Oak. Belen’s plans for the site include a “cool mod- “Managing the customer relationship cancer research through an annual golf ern American concept with live rock and country and engineering changes is always the outing. music, and food at a very approachable price point.” greatest challenge in managing a pro- — Dustin Walsh — Laura Cassar 20151012-NEWS--0013-NAT-CCI-CD_-- 10/9/2015 11:26 AM Page 1

CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 13 40 under Brian Burke, 36 40 Vice president, Gecom Corp., Novi BIGGEST ACHIEVEMENT: Brought $80 million in new con- Larry tracts to Gecom since joining the company in 2013. Brinker Jr., CURRENT GOAL: Foster a company culture that is appealing to a new 36 generation entering the auto industry. President, L.S. Brinker Co., Detroit Brian Burke has a knack for winning contracts. He took his current job in 2013 and since then has brought in more than $80 million in new business. At his previous employer, Brembo North America Inc., he grew original equip- BIGGEST ACHIEVEMENT: Increased prof- by training employees to take on multiple roles. ment sales from $4 million to $120 its by 20 percent during his first year as presi- Project managers received convertible tablet million annually. dent after taking over the family business. computers so they could access blueprints elec- This year, he received the highest CURRENT GOAL: Expand the company’s tronically. honor given by Gecom’s parent com- national market share by 2017 to increase annu- “I have essentially worked in just about every pany, Mitsui Kinzoku ACT. al revenue by 20 percent. position in our company,” Brinker said. “So I can He said the key to his success is relate to specific issues and have real-world ex- “treating each customer like human Larry Brinker Jr. has been around the con- perience.” beings and allowing customers to be race car driver who raced in the Coop- struction industry for most of his life. His father, Recent projects included a 16,000-square- heard,” Burke said. er Tires F2000 pro series and won Larry Brinker Sr., started Brinker Team Construc- foot headquarters addition for the Kresge Foun- His former boss at Brembo said multiple Formula 2000 national tion in 1989 and eventually formed Brinker Group, dation and a $140 million critical care tower ad- Burke develops outstanding relation- championships. five contracting firms based in Detroit. dition for DMC Children’s Hospital of Michigan. ships with clients, which translates He also owns half a dozen proper- Brinker Jr. now leads one of those firms, L.S. Brinker is chairman of the Construction Asso- into sales. “Brian was instrumental in ties. Brinker Co., formed by his father in 1993. ciation of Michigan and serves on the boards of establishing the Brembo brand (that Burke holds patents for brake He took over the role of president in 2014. the Wayne County Sheriff Youth and Education Fund, was new to the U.S.) with U.S. OEMs,” caliper design, a chip off the old block During his first year, he increased profits by 20 Michigan Black Chamber of Commerce, Greg K. Mon- said Dan Sandberg, Brembo CEO and since his grandfather holds patents for percent. Last year, L.S. Brinker generated $40 roe Foundation and Ferris State University’s con- president. gear design, some still used today. million in revenue. It has 25 employees. struction technology and management program. Burke also is a retired professional — Marti Benedetti Brinker cut costs and increased productivity — Rachelle Damico

The honorees Abir Ali...... 12 Aaron Belen ...... 12 Brooke Bowers ...... 12 Larry Brinker Jr...... 13 GET TO KNOW Brian Burke ...... 13 Jason Drake ...... 14 Michael Forbes ...... 14 OUR REGION’S YOUNG LEADERS Adrian Fortino ...... 15 Deirdre Groves ...... 15 Elizabeth Hammond ...... 16 JOIN THESE RISING STARS TO CELEBRATE THEIR ACHIEVEMENTS! Laura Hughes ...... 16 Anika Jackson ...... 17 The Crain’s 40 Under 40 party brings together the current class Jennifer Jonika...... 18 with past winners and their colleagues, clients, family and friends. Benjamin Kennedy...... 18 Network with these accomplished entrepreneurs, executives, Charlie Knoll...... 19 elected offi cials and nonprofi t/civic leaders. Michelle Kotas ...... 19 Alison Laesser-Keck...... 20 Kelly LaPierre ...... 20 Carrie Lewand-Monroe ...... 21 Anthony Majewski...... 21 Paula Nelson ...... 22 NOV. 19 • 5 - 9 p.m. Royce Neubauer ...... 22 Van Nguyen ...... 23 Marriott Renaissance Center, Detroit Bunia Parker ...... 23 TITLE SPONSOR Ryan Plecha...... 24 REGISTER TODAY! crainsdetroit.com/events Jim Richards ...... 25 OR CALL (313) 446-0300 Gabe Rubin ...... 25 Joe Saad ...... 26 Kyle Anne Sasena ...... 27 TITLE SPONSOR PREMIER SPONSOR Tony Saunders ...... 28 Candice Simons ...... 28 Megan Spanitz ...... 29

Lilly Epstein Stotland...... 29 MAJOR SPONSORS PRINT SPONSOR Guy Suter...... 30

ain’s Det r of Cr r oit bus Michael Taylor...... 30 int e ines l pr s E ia ve f ic n f t s Tiffany Taylor ...... 31 O

w w 41 w. .03 Parker Tracey ...... 31 grek .453 oprinting.com • 734 Edgar Vann III...... 32 Tommey Walker...... 33 Michael Yessian ...... 33 20151012-NEWS--0014-NAT-CCI-CD_-- 10/8/2015 5:06 PM Page 1

14 CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 40 under 40

Jason Drake, 36 Partner, International Services, Plante Moran, Auburn Hills

BIGGEST ACHIEVEMENT: Help- hand when an international trip ing Plante Moran increase interna- needs to be made. tional revenue by 400 percent. That’s meant big business for Plante Moran. In the time Drake CURRENT GOAL:Increase Plante has been with the firm, interna- Moran’s international business to tional business has grown more over $70 million in the next two than 400 percent to over $60 mil- years. lion in annual revenue. Plante Moran’s international It’s easy to send an email. presence includes offices in China, What’s not so easy? Traveling India and Mexico. Drake led the around the globe to build relation- formation of the office in India in ships face-to-face. 2009 and watched it grow from two Jason Drake of Plante Moran to 16 employees. That office now PLLC knows that firsthand. Since generates $1.5 million in revenue. an internship in 1999, Drake has Drake said businesses must go spent his career at Plante Moran, global to succeed, and it has to be an accounting and business con- done face-to-face. sulting firm based in Southfield. “Part of what makes Plante Since then, he’s logged enough Moran special is our culture. It’s miles to get around the world 52 hard to create that culture over the times. phone,” Drake said. He’s always the one to raise his — Michelle Wilson

Michael Forbes, 31 Product designer and licensing associate, The Henry Ford Innovation Institute, Detroit

BIGGEST ACHIEVEMENT: Lead industrial designer for Henry Ford’s “Model G” patient hospital gown.

CONGRATULATIONS CURRENT GOAL: To influence designs on other medical technologies and devices. Ongoing project is to integrate 3-D printing with health care procedures.

Michael Forbes moved ahead of the class in 2011 when The Henry Ford Innovation Institute recognized his talent and hired him out of Detroit’s College for Creative Studies as an intern designer. “He was all set to go to Hasbro to design toys,” said CEO Scott Honigman congratulates the Dulchavsky, who talked Forbes into working at the institute. Soon afterward, Forbes was coaching students from the institute to an- Crain’s 40 Under 40 class of 2015 alyze medical products and come up with better ideas. They soon came up with a prototype for a redesign of the hospital gown. and offers our best wishes to “The design wasn’t ready, but my job was to take it to the mainstream,” Forbes said. That involved more changes, tests with all of this year’s honorees. patients, securing a patent and prepar- ing for mass production. “He ran the whole thing,” Dulchavsky said. Forbes got Carhartt to make Thank you for contributing to the the first test run of 35,000 gowns, which were delivered success of our region. in April for use in Henry Ford Health System. The Model G (named with a nod toward Henry Ford’s Model T) is closed in the back by a fold-over panel, giving patients better privacy while still allowing doctors to conduct tests. It WWW.HONIGMAN.COM is made of thicker material, which keeps patients warmer. — Jay Greene 20151012-NEWS--0015-NAT-CCI-CD_-- 10/8/2015 5:07 PM Page 1

CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 15 40 Deirdre Groves, 33 under Co-founding executive director, Challenge Detroit, Detroit

BIGGEST ACHIEVEMENT: Recruited 60 compa- together every week to work on community service 40 nies to provide jobs for Challenge Detroit partici- projects. pants. Since its launch in 2012, nearly 3,000 people have applied to the program, and more than 100 have par- CURRENT GOAL: Challenge Detroit is looking at ticipated. Ninety percent have stayed in Detroit. Ten how it should evolve to meet the changing needs of have started businesses and nonprofits, and about $3 an improving city. million has been generated in economic impact. The Michigan Economic Development Corp. provided As Detroit emerged from the worst years of the re- startup funding. A variety of local companies small cession, Deirdre Groves saw a need for talent and and large, including DTE Energy Co. and General Motors ideas. Co., employ fellows. Adrian A gifted networker, she and her mentor, Doyle Mosh- “Despite the personal sacrifice (she and her hus- er, started Challenge Detroit to bring professionals here. band had to move into her parents’ home), mountains Fortino, 38 The nonprofit matches jobs with professionals of objections and the struggling economy, I knew Partner, Mercury Fund, from Detroit and throughout the country under a Challenge Detroit was a game changer,” she said. Ann Arbor yearlong fellowship program. It also brings the fellows — Marti Benedetti

BIGGEST ACHIEVEMENT: Lead- ing investments in 25 early stage companies in Southeast Michigan through successive roles in the area’s venture capital industry. CURRENT GOAL: Building Mer- cury Fund into the preeminent venture capital fund in the Midwest in the next five years.

Adrian Fortino has been making a splash in Michigan’s venture capital world. In the past three years, Fortino has invested in 27 local early stage companies, first in his role as vice president of Invest Detroit, where he managed the Detroit Innovate and First Step funds, and now as a partner with Houston-based Mercury Fund, which put him in charge of a new Ann Arbor office in November 2014. Fortino’s first investment, in 2012 at Invest Detroit, was in Seelio Inc., a maker of career preparation technology. Eighteen months later, he helped sell it to Lenexa, Kan.-based Keypath Education. What started as a social network for college students gratulati had morphed into software used by Con ons universities’ career services departments. “It was organic,” Fortino said. “We were responsive to what the market was saying, and that’s what all good entrepreneurs do.” The investments Fortino led have to our WMU alumni supported nearly 800 jobs, he estimates. Fortino is co-founder of two startups, Ann Arbor-based FlockTag Inc., which manages customer reward Michelle Lee Kotas programs and has raised about $2 million, and San Francisco-based Anthony Majewski Sidecar Technologies Inc., a ride-share company that has raised about $40 million, including an investment by Ryan C. Plecha Richard Branson, the Virgin Group founder. Fortino is excited to see more Megan Spanitz people staying in Michigan after school and, perhaps better, to see Michigan natives returning. Michael Yessian “I am always asked about what would take this region to the next level,” Fortino said. “In my opinion, it’s a $500 million acquisition. The spinout from that would have a and to all of the 40 under 40 huge impact.” — Laura Cassar 20151012-NEWS--0016-NAT-CCI-CD_-- 10/8/2015 5:07 PM Page 1

16 CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 40 under 40

Elizabeth Hammond, 35 President, Contract Direct LLC, Southfield

BIGGEST ACHIEVEMENT: In- the company has grown to employ creasing Contract Direct’s revenue about 100 people. from $100,000 to $23 million in 13 The company started off clean- years. ing aircraft interiors for Delta Air Lines and Spirit Airlines at Detroit CURRENT GOAL: Raise revenue Metropolitan Airport. by 20 percent in two years. In the early years, Hammond would clean the planes herself if Elizabeth Hammond had been staff members missed work. That working in the facility service in- included midnight shifts, while dustry for three years when she juggling multiple jobs and raising saw the potential to form her own three children with her husband. company. “I did what needed to be done In 2002, Hammond and Omni Fa- to ensure that my company would cility Services President and CEO be successful,” she said. Ahmed Boomrod formed Contract Contract Direct grew by Direct, Hammond being the pri- adding services, retaining cus- mary owner. tomers and branching out to new Hammond and Boomrod met businesses. when Hammond was hired to Aviation cleaning still makes up manage operations and client re- about half the company’s profits, lations at Omni. Boomrod eventu- but it found another niche in food ally sold his share, leaving Ham- sanitation. One of its biggest cus- mond majority owner. tomers is Kellogg Co. Under Hammond’s direction, — Rachelle Damico Laura Hughes, 35 Vice president, communications and community, EXCELLENCE. ATTENTION. RESULTS. Strategic Staffing Solutions, Detroit BIGGEST ACHIEVEMENT: Playing a direct role in establishing and growing sales in Strategic Staffing Solutions’ overseas markets.

CURRENT GOAL: Build out global marketing and communications plan in Lithuania and Britain.

When Laura Hughes was hired as vice president of communications and community last year at Detroit-based Strategic Staffing Solutions, she was tasked with examining how the company talks about itself internally and to clients. She spent three months analyzing communication’s role at the $275 million staffing firm, and then began to deploy improvements. She also analyzed emerging markets for S3. “We’ve already seen immediate wins from that, but we’ve only just begun to scratch the surface,” she said. Her greatest impact has come overseas: Hughes streamlined S3’s services in Europe, giving them the ability to cross-sell for the first time. That’s resulted in a 32 percent profit boost for the company’s international unit. Congratulations to S3’s management credits her work for landing a Danish bank as a client, opening up that nation as a new market for the first time. YAN LECHA She’s also critical to identifying new markets for S3 and is credited with R C. P gaining a toehold for the firm in Latin and South America. Crain’s She also was tasked with reviewing and improving S3’s community en- 40 Under 40 gagement, and added high school student and choir exchange programs. Winner Her job includes managing S3’s $2 million annual philanthropic budget. Hughes has been with S3 only since 2014, after having spent two years with the Detroit-based Skillman Foundation as a program officer. Before that, she was executive director of the Detroit-based Ruth Ellis Center, which provides residential and support services for at-risk young 370 E. Maple Road • Birmingham • Michigan • 248-646-8292 • www.lippittokeefe.com people, including runaways, the homeless and LGBT. — Bill Shea 20151012-NEWS--0017-NAT-CCI-CD_-- 10/8/2015 2:15 PM Page 1

CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 17 40 under 40 IS EVERYTHING.IS

Today, more than ever, global competition, new technologies, 2015 BEST COLLEGES and corporate streamlining require innovative thinking and leadership abilities. in the Midwest Princeton Continuing your education can be key to your success. From industrial and Review® civil engineering to project management and transportation design, Lawrence Anika Jackson, 31 Technological University offers innovative degrees and fast-track certificate 2015 AMERICA’S BEST President, Jackson Land Holding Co. LLC, programs to prepare you for the careers of the future. UNIVERSITIES U.S. News & World Report® St. Clair Shores Architecture and Design | Arts and Sciences | Engineering | Management 2015 LTU ranks fifth among U.S. colleges and universities for TOP 100 BIGGEST ACHIEVEMENT: Un- portfolio of commercial and resi- boosting graduates’ earning power. – Brookings Institution UNIVERSITY Highest Alumni Salaries dertaking a $12 million renovation dential real estate totaling more PayScale of the historic Lafayette Towers as than $25 million. These include Lawrence Technological University part of growing her family’s prop- Prestige Automotive properties, the 21000 West Ten Mile Road, Southfield, MI 48075-1058 | 800.225.5588 | [email protected] | www.ltu.edu erty management company. Midtown Business Center and Lafayette Towers. CURRENT GOAL: Expanding the Projects like the renovation of property portfolio and increasing Lafayette Towers — the Mies van the Detroit footprint. der Rohe-designed apartment buildings in Lafayette Park — have When Anika Jackson returned helped Jackson realize her ambi- home to the Detroit area in Octo- tion to make a difference in her ber 2014, she hoped her new job as hometown. president of Jackson Land Holding “I found a new passion, one I would help improve the city she didn’t know I had,” Jackson said. loves. The renovations include Her father, Gregory Jackson, is adding a 2-acre rooftop commu- chairman and CEO of local auto- nity space to the parking struc- motive dealership Premier Automo- ture. This roof has grass and trees, tive Group. a swimming pool, community He also is head of Jackson Land lounge and bathhouse. Holding, and for years he’d been She also is leading Prestige’s asking his daughter to come back, construction of an $8 million saying he could do so much more Cadillac dealership on Van Dyke if he had help. Avenue in Warren, across from the Jackson said she realized it was General Motors Technical Center. time to stop just doing a job in “I’m very proud of our transition Chicago, where she was a product from automotive to a diverse busi- marketing manager for AT&T. ness,” Jackson said. Now she is responsible for a — Laura Cassar LAURA HUGHES

Vice President of Meet the 2015 honorees Community and Communications

Every year, Crain’s 40 under 40 award program honors high achievers who have made an impact as executives, managers, entre- STRATEGIC STAFFING SOLUTIONS preneurs and community leaders. This year’s honorees will be recognized at a special event taking is proud to congratulate LAURA HUGHES place Nov. 19 at the Marriott Renaissance Center in Detroit. for being named to Crain’s Detroit Business 40 under 40! The honorees come from diverse industries, professions and backgrounds. This year’s winners launched successful companies, grew established firms, took on high-pressure projects and gave a hand to those in the community. Celebrating A Quarter Century Of Service Honigman Miller Schwartz and Cohn LLP is this year’s title sponsor, and Northwestern Mutual is the premier sponsor. To Our Customers And The Community Individual tickets for the event, scheduled from 5 to 9 p.m., cost Providing IT Consulting, Staff Augmentation, Call Center Services, International Services, $80. Tickets for groups of 10 or more are $75 each. For past 40 under Managed Staffing Programs,Customized Project Solutions, Professional Search Services, 40 winners, the cost is $40 per ticket. A strolling dinner and drinks and more to 31 locations around the globe. are included. PEOPLE POWERED. CUSTOMER CENTERED. COMMUNITY CHAMPIONS. To register, go to crainsdetroit.com/events or call (313) 446-0300. *ULVZROG SXLWH DHWURLW ZZZ.VWUDWHJLFVWDɱ.FRP 20151012-NEWS--0018-NAT-CCI-CD_-- 10/8/2015 3:54 PM Page 1

18 CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 40 under Jennifer Jonika, 36 40 Director, maternal and early childhood clinical services, Starfish Family Services, Inkster BIGGEST ACHIEVEMENT: Increasing maternal and early childhood clinical services revenue at Starfish to $3.6 million in 2014 from $1.6 million four years earlier, advancing its behavioral health services for children and families.

CURRENT GOAL: To lead the opening of a freestanding maternal and early childhood wellness center for Starfish in Inkster.

Jennifer Jonika joined Starfish Family Services in 2003 as an outpatient psychotherapist, doing play therapy with children and their families. Seeing so many older children and teens who’d been abused and neg- lected led her to contemplate becoming a police officer, like her father. But she remained a therapist and focused on prevention for infants and their caregivers. “There were so many victims of trauma, I had to figure out how to help things before they got that bad,” Jonika said. Jonika has held a series of leadership roles over the past nine years, rising from psychotherapist to infant mental health supervisor in 2006, where she oversaw a staff of four that grew to 12. In 2010, she became a program manager in maternal and early childhood services with responsibility for increasing revenue, staff and services. Benjamin Kennedy, 38 She’s increased the number of psychotherapists from 12 to 37, all of Deputy director, Detroit program; them focused on clinical work with mothers and infants. director,American Cities Practice, She led her department’s collaboration with the University of Michigan and Oakwood Hospital on mental health programs for mothers. Kresge Foundation, Troy She helped launch behavioral health screenings at local day cares and preschools and an autism evaluation and treatment program. She also BIGGEST ACHIEVEMENT: Helping revitalize the was behind a drop-in family resource center at the agency’s main Inkster Woodward Corridor over the past five years through new site, which offers a play room for low-income families with young children programs and supportive grant funding. who may need assessment and treatment but haven’t yet been diagnosed. Once new programs show results, they can be taken to the state for ap- CURRENT GOAL: To take best practices from the foun- proval as programs that can be billed to Medicaid, Jonica said. “What dation’s work in the Woodward Corridor, along with new brought our (new) grants in was new programming that hasn’t been done resources, to other Detroit neighborhoods, beginning before,” she said. with the Livernois Avenue and McNichols Road corridor. — Sherri Welch Benjamin “Benjy” Kennedy joined the Kresge Foundation in 2009 right out of Harvard Universi- ty’s business school. What was supposed to be a one-year fellowship has turned into half a decade of helping with major Detroit efforts including the “Live Midtown” initiative to attract people to De- troit’s Midtown neighborhood. {Globe trotter.} He also is the foundation’s point person on the M-1 Rail project. To spur investment along the light rail line, he attracted Vir- ginia-based Capital Impact Part- ners to Detroit and worked with it to create the $30 million Wood- ward Corridor Investment Fund. In six years, Kennedy has moved from fellow, to program And now a 40-under-40 winner. officer, to senior program officer, to deputy director of the founda- Congratulations to tion’s Detroit program, as well as Jason Drake and director of the foundation’s Amer- ican Cities Practice, which is tak- the Plante Moran ing lessons learned in Detroit to Global Services team. cities like New Orleans and Mem- phis, Tenn. He directs Detroit Delivering the best client grant resources of about $13 million and more than $7 million in service on the planet is the American Cities Practice. “This practice is about taking what we’ve learned in Detroit a higher return on experience. and exporting that knowledge,” Kennedy said. Kennedy also developed the Detroit Revitalization Fellows program. To date, the effort, now managed by Wayne State Universi- ty, has brought roughly 80 mid- career professionals to the city to work in Detroit’s nonprofit and plantemoran.com public sectors. — Sherri Welch 20151012-NEWS--0019-NAT-CCI-CD_-- 10/8/2015 2:16 PM Page 1

CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 19 40 Charlie Knoll, 31 Michelle Kotas, 37 under President, Ducati Detroit, Birmingham CFO and senior vice president of corporate services, YMCA of Metropolitan Detroit, Detroit 40

BIGGEST ACHIEVEMENT: Opening an exclusive Ducati dealership and becom- BIGGEST ACHIEVEMENT: Leading an urgent refi- ing the eighth-most successful dealer of nancing of $28 million in bond debt, achieving better the Italian motorcycle brand in the nation. terms that led to $200,000 to $250,000 in annual savings.

CURRENT GOAL: Open another motor- CURRENT GOAL: Strengthening the organization’s fi- cycle dealership focused on exotic brands. nancial sustainability through program growth.

Charlie Knoll is no stranger to the motorcycle industry. In fall 2013, the YMCA of Metropolitan Detroit got His family owns the Heartland Harley-Davidson dealership in Burlington, Iowa. unexpected news. He’s ridden motorbikes since he was 5 years old. And as a teenager, he held a mi- A consortium of banks was not going to renew a letter nority interest in an Illinois power sports business that sold in 2002. of credit supporting $28 million in bond debt issued It followed that when he saw an opportunity to bring exotic European bikes to years earlier by the YMCA, as part of funding for facilities Southeast Michigan, he jumped on it. built in downtown Detroit, Milford and Auburn Hills. In 2013, after two years of negotiations and research, Knoll opened Ducati De- A new financing structure was needed. Kotas, who troit — a dealership selling bikes made by the famed Italian manufacturer. was on maternity leave, got started on the project as- And despite a local weekend-warrior culture more geared toward American sisted by Scott Landry, then executive vice president of bikes like Harley-Davidson, Ducati Detroit has found success in the creases. strategic development and now president and CEO, In 18 months, Knoll pushed his dealership to become the eighth-largest Ducati and a task force of board members and staff. by sales volume in the U.S., out of 121 in the country. It was the biggest project Kotas had dealt with in her “Considering how short our riding season is here, being in the top 10 really says decade at the YMCA. There was “a lot riding on getting something about this dealership,” Knoll said. to a successful place,” Kotas said. Ducati Detroit is tracking to sell more than 300 bikes in 2015, up 42 percent The outcome: A new and more favorable arrange- from last year, which would mean revenue of $6.5 million, up from $5.4 million. ment through Huntington National Bank and PNC Bank. Knoll said accessibility is key. Ducati Detroit is open seven days a week and its The banks hold the bonds under a seven-year private mobile service center performs maintenance and fixes on bikes across the state. placement, longer than the previous two-year letter of The success has led Knoll to seek other opportunities. credit, and at a lower interest rate. Through his investment arm CK Investments LLC, Knoll has signed a deal to Kotas said the process has influenced how she ap- open a dealership to sell another Italian motorcycle maker, MV Agusta. proaches other challenges. Knoll also wants to open a car dealership someday. “So when other big projects or questions or issues “I’m Michigan born and raised, so we’re open to opening a Ford or Chevy deal- come up, that’s my first thought: Who do I want to talk er,” Knoll said. to ... (to) formulate a well-rounded plan?” — Dustin Walsh — Amy Lane 20151012-NEWS--0020-NAT-CCI-CD_-- 10/8/2015 2:17 PM Page 1

20 CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 40 under Alison Laesser-Keck, 36 Kelly LaPierre, 30 40 Owner and creative director, VLD Events LLC, Ann Arbor Managing director, Desai Accelerator, University of Michigan, Ann Arbor BIGGEST ACHIEVEMENT: Launching and grow- “What do I have to lose?” she thought. ing a high-end wedding planning business. It was 2008, just as the U.S. economy headed into its steepest recession in generations. Within BIGGEST ACHIEVEMENT: Launch- CURRENT GOAL: Continue to showcase Michi- months, the California native and her then- ing the Desai Accelerator in June at the gan through one-of-a-kind weddings. boyfriend (and future business partner and hus- University of Michigan. It is a joint band), Bryan Keck, headed to Michigan, where venture between the Zell Lurie Institute Alison Laesser-Keck started her events planning they both have roots. of Entrepreneurial Studies at the Ross company after hundreds of interviews failed to At first, she worked in Ann Arbor restaurants School of Business and the university’s produce a job in Seattle. and spent nights with her mobile phone by the College of Engineering. bed, hoping for calls for event planning. These days, VLD is booked 18 to 24 months in CURRENT GOAL: Attract out-of- advance — often with weddings for New York or state companies to join the second co- California executives and lawyers with connec- hort of companies that will go through tions to Michigan. Luxury Detroit weddings are in the accelerator next summer. demand, she said. She and Keck orchestrate 15 to 30 events a year, Kelly LaPierre is emblematic of the mainly for out-of-state brides and grooms. Rev- kind of talent that used to grow up enues were $2 million in 2014 and this year, and here, go to school here, then leave for are expected to hit $3 million in 2016. other states to build a career. Clients want weddings that showcase Detroit The Farmington Hills native got her come back to Michigan, seeing all the and Michigan in general, and spend $50,000 to bachelor’s degree from UM, then from energy ,” she said. $100,000 to stage them. VLD plans weddings at the 2007-2011 worked at Target Corp., In 2013, LaPierre returned to Detroit Detroit Institute of Arts, the Ford Piquette Avenue where she did business and marketing as director of marketing and operations Plant and the Fox Theatre. analysis. for Grand Circus,a Detroit Venture Part- One recent wedding was that of a member of Then it was off to the Harvard Busi- ners company that provides computer the Ford family at the Edsel & Eleanor Ford House, ness School, followed by a stint as an coding and Internet-related courses. complete with Detroit Lions cakes. associate for business accelerator And in August 2014, LaPierre became “We’ll do anything to pull off an experience that Techstars. In the summer of 2012, the first managing director of the new people go crazy for,” she said. though, LaPierre returned to Michigan Desai Accelerator. In June, the accelera- Alison and Bryan exchanged vows themselves, briefly to be an intern at Bizdom, the tor launched its first cohort of five start- in June, at a wedding in their backyard featuring Dan Gilbert-associated organization ups in a 13-week program. Each got lawn games and Motown music. that helps launch startups. $25,000 and office space. — Vickie Elmer “That’s what made me so excited to — Tom Henderson

Congratulations to Larry Brinker, Jr. on being recognized as a Crain’s 40 under 40

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CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 21 40 Carrie Lewand- under Monroe, 38 40 Deputy director, Detroit Land Bank Authority, Detroit Congratulations BIGGEST ACHIEVEMENT: Took over the failing $52.3 million Hard- Lilly Epstein Stotland est Hit Fund, a U.S. Treasury-funded demolition program in Detroit, and transformed it into a national- 2015 Crain’s Detroit Business ly recognized program. 40 Under 40 Honoree CURRENT GOAL: Increase residential property sales to stabilize Thank you to Crain's Detroit Business the Detroit housing market. for your outstanding contributions to Even before Carrie Lewand- the greater Detroit business community. Monroe was in law school, she had You shine a bright light on extraordinary her mind set on helping with the individuals and you definitely found housing situation in Detroit. “I’ve been very passionate about one of ours. neighborhood stabilization from earn honors from the U.S. Environ- early on in my career,” she said. mental Protection Agency. She worked for the Wayne Coun- Lewand-Monroe recently was ty Land Bank after law school and promoted to deputy director. She is was executive director of the Michi- credited with spearheading new gan Land Bank during Gov. Jennifer land bank initiatives, such as a side Granholm’s tenure. Mayor Mike lot program, which allows property Duggan asked her to take the sen- owners to buy the vacant lot next to ior policy adviser position with the them at a reduced price online. Detroit Land Bank Authority in Lewand-Monroe works with her fa- www.vescooil.com 2014. She has managed multiple ther, F. Thomas Lewand Sr., group demolition programs, demolish- executive for jobs and economic ing more than 7,250 blighted hous- growth, in the mayor’s office. es, while helping the land bank — Marti Benedetti

Anthony Majewski, 39 Owner, Read With Max LLC, Sterling Heights

WE THINK HIS EDUCATION HAD

BIGGEST ACHIEVEMENT: Creating a line of books to help children SOMETHING TO DO WITH IT. overcome social and emotional issues. CURRENT GOAL: Launch an animated series and develop a foundation to help autistic children with learning and reading. Congratulations to Walsh alumnus Anthony Majewski, (MBA, ’10) recently named one of the Crain’s Detroit Business “40 under 40.” As a child and a teenager, Anthony Majewski moved 11 times, first due to his father’s work requirements, and later, for college. After hearing his family joke repeatedly about him writing a book about moving around, he decided to do just that. That book, Dogs Move Too, has sparked a small children’s media company that’s broadened into an animated television series, toys and albums. Majewski has self-published four titles and sold about 3,000 copies. Early this year, he signed a deal with Simon & Schuster to distribute audio books. The books feature Maximus, a yellow English Labrador who shares his life experiences, including topics like bullying, to help children relate. He’s joined by basset hound Wrigley. Both dogs are drawn by Majewski’s wife, Julie, who also handles social media and other tasks. Majewski expects revenue to reach $1 million next year. Revenue should get further momentum from licensing and royalties from an animated TV series called “Max and Wrigley.” Pilot episodes are being created. Majewski’s day job is at advertising agency Publicis Groupe SA, and the marketing experience has come in handy. walshcollege.edu Some company sales proceeds go to fund research in early education, autism and special needs education. — Vickie Elmer 20151012-NEWS--0022-NAT-CCI-CD_-- 10/8/2015 2:53 PM Page 1

22 CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 40 under Paula Nelson, 37 Royce 40 President and CEO, Sacred Heart Rehabilitation Center Inc., Richmond Neubauer, 39 Founder, president BIGGEST ACHIEVEMENT: Nelson munity college classes. Last year, the organization and CEO, Service First rose through the ranks to take the She rose through the organiza- served 10,000 people on 10 cam- Logistics Inc., Auburn Hills CEO job this year and has expand- tion, the only place she’s worked in puses. In recent years, Sacred Heart ed the nonprofit’s services. her professional career. She worked has opened recovery centers in as a quality improvement coordi- Madison Heights and Flint; and CURRENT GOALS: To make Sa- nator in 2003, then as vice presi- opened a treatment center in cred Heart a leader in addiction re- dent of that division in 2006, fol- Berrien County. covery and behavioral health serv- lowed by COO and vice president of Also, a program in Richmond al- ices, including more services and client services in 2009. lows women to bring their children supportive housing. She was named president and them while receiving inpatient CEO in April, and has a goal of ex- detoxification treatment. Paula Nelson started working in panding statewide. Part of her in- Said Nelson, who has a bache- Sacred Heart’s records department terest in Sacred Heart is personal: lor’s degree from Walsh College: “It’s a month after graduating from high She said there is a history of addic- one less barrier.” school in 1996 while taking com- tion in her family. — Lindsay Vanhulle

BIGGEST ACHIEVEMENT: Growing his startup to $27 million in just four years.

CURRENT GOAL: Increase annual sales to $1 billion.

Just four years ago, Royce Neubauer was working on his startup from his bedroom in Kentucky, struggling for weeks during his first quarter as a business owner. After working in logistics for nine years, Neubauer poured $250,000 in savings into forming Service First Logistics, a freight brokerage firm that works with smaller trucking companies. His company matches grocery chains, manufacturers and farm- ers with trucking companies, and negotiates shipping rates. Service First grew through word-of-mouth, industry contacts and the many hours Neubauer put in promoting the company through social media, cold calls, mass emails and trade publications. Neubauer moved the company to Michigan in 2013 to be closer to the family of his wife, Let’s grow, right now. Sara Neubauer, who is also a company partner. He opened his headquarters in Rochester and last year added a second And, with historically low rates, there’s never been a more opportunistic branch in Cincinnati. time to expand your business with a commercial real estate loan from This year, Service First moved When it comes to Comerica. As the leading bank for business*, we’ve been ﬁnancing to Auburn Hills to make room business, timing is business expansion for nearly 150 years. Whether you need to build or for the company’s growing staff. purchase, expand or reﬁnance, it’s the right time. Are you ready? The current staff count of 53 everything. employees is anticipated to Call 800.705.2387, stop by a Comerica banking center or grow to 60 by the year’s end. visit comerica.com/cre. Revenue reached $27 million last year and is expected to exceed $45 million by the end of this year. The company has more than 600 customers, mostly in produce. Neubauer credits success to investments in employee training. Employees are educated in the produce market and trained to watch the commodity indus- ® try closely. “My mindset was to RAISE YOUR EXPECTATIONS. create a company where people MEMBER FDIC. EQUAL OPPORTUNITY LENDER. Comerica Bank NMLS ID: 480990 were proud and excited to go *Based on commercial and industrial loans as a percentage of total assets. into work every day,” he said. Data provided by SNL Financial, December 2014. — Rachelle Damico CBP-5200-06 09/15 20151012-NEWS--0023-NAT-CCI-CD_-- 10/8/2015 2:47 PM Page 1

CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 23 40 under Van Nguyen, 31 40 Executive director, Asian Pacific American Chamber of Commerce, Troy

BIGGEST ACHIEVEMENT: Reaching and exceeding the chamber’s annual fundraising goals while also growing membership.

CURRENT GOAL: Expand membership to other Midwest states in three years.

In its 14-year history, the Asian Pacific American Chamber of Commerce in Troy had never been able to reach its fundraising goals. That changed when Van Nguyen became executive director in 2013. She reached the chamber’s $285,000 annual gala fundraising goal within the first five months. This year, she exceeded the gala’s $290,000 goal by $27,000. Nguyen, who has over 10 years of experience in social marketing, used digital marketing and social media to re- %ONGRATULATIONS vamp the chamber’s brand and image. Since Nguyen took on the role, membership has grown Jennifer Jonika from 150 to 270 members. The nonprofit connects businesses based in the U.S. and Asia. In addition, APACC offers services such as business 5VCTſUJ(COKN[5GTXKEGU consulting workshops and networking events. The chamber gets the majority of its revenue from &KTGEVQT/CVGTPCN'CTN[%JKNFJQQF%NKPKECN5GTXKEGU fundraisers, membership fees and corporate sponsors such Your Crain’s Detroit Business 40 Under 40 recognition as General Motors Co., DTE Energy Co., Olympia Entertainment is well deserved. and The Kroger Co. “Corporations see the value that the Asian community Starfish Family Services salutes your passion and dedication has,” said Nguyen. for improving the lives of mothers and children. Your positive Nguyen also is vice president of the Novi Oaks Chapter of impact on the community is immeasurable. the local American Business Women’s Association. She serves as a board member for Gleaners Community Food Bank, Strengthening families to create brighter futures for children Madonna University’s School of Business and several other starfishonline.org groups. — Rachelle Damico

Bunia OUR SUCCESS IS BASED ON THE Parker, 35 ACHIEVEMENTS OF Principal, Summit OUR TEAM MEMBERS Commercial LLC, Detroit

BIGGEST ACHIEVEMENT: Representing buyers or sellers in high-pro- The 20,000 GDI facility service employees file Detroit real estate deals. throughout North America applaud CURRENT GOAL: Continued growth at Summit Commercial, including an expansion into development. Elizabeth Hammond for her recognition in Crain’s 40 under 40! Don’t even think about asking Bunia Parker about Carlos Slim Helú, who last year bought a vacant Detroit office building. That’s because Parker, 35, is under a confidentiality agreement and can’t say a word about the deal that brought Slim, one of the three richest It is such individual achievements that enhance GDI and men in the world, to the Detroit market. But it was Parker, principal of Detroit-based real estate brokerage firm allow us to be one of the most successful and largest Summit Commercial LLC, who brokered the sale of the 164,000-square- commercial service company in the U.S. and Canada. foot Marquette Building on West Congress Street at Washington Boule- vard for $5.8 million to Slim. “There are buyers not only all over the country, but all over the world, and we are seeing an influx coming into this market who are very interested,” said Parker, a 2002 Duke University graduate in economics and African studies. In addition to the Marquette Building deal, Summit last year also represented New York City-based Ash NYC Inc., which bought the former Wurlitzer Co. building on Broadway Street and plans a $20 million conver- sion into a 97-room boutique hotel. He also worked on the deal that brought to Detroit a pair of Austin, Texas-based investors who plan multi- family conversions of several New Center area buildings. The total value of Summit’s deals since 2009 is $75 million. www.gdi.com — Kirk Pinho 20151012-NEWS--0024-NAT-CCI-CD_-- 10/8/2015 2:48 PM Page 1

24 CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 40 under 40 Ryan Plecha, 34 Partner, Lippitt O’Keefe Gornbein PLLC, Birmingham

BIGGEST ACHIEVEMENT: Represent- ing up to the “grand bargain” in Detroit’s Law School’s Auburn Hills campus, ing retired Detroit city employees in suc- Chapter 9 federal bankruptcy. Plecha was once a judicial intern for cessful mediation talks during the city’s The RDPFFA, whose 6,500 members Chief U.S. District Judge Gerald Rosen in Chapter 9 reorganization. include more than 80 percent of police Detroit, then found work as a contract and fire pensioners, was previously a attorney for the former Hyman Lippitt CURRENT GOAL: Growing into the law firm client, and the DRCEA specifi- PC, a predecessor firm of Lippitt O’- role of partner in a business generation cally retained the firm for the bankrupt- Keefe, then became an associate at the role, and mentoring younger attorneys. cy. firm. The police-fire association reached “Becoming partner in such a short As Ryan Plecha can attest, there’s an agreement to support Detroit’s plan time is something I’m proud of,” he said. more than one way to get noticed and of adjustment out of mediation in April Rosen said it was a great source of advance at a law firm, outside of the 2014 — one that avoided benefit cuts pride to see Plecha grow into the attor- standard career track. but reduced cost-of-living increases for ney who represented the retirees in me- On Jan. 1, Plecha became the pensioners going forward. Other em- diation before attorney Eugene Driker. youngest lawyer ever to make partner at ployees and the boards of Detroit’s two “He (Plecha) was absolutely critical in Lippitt O’Keefe Gornbein PLLC in Birm- employee pension funds later got on resolving what, in my view, was the most ingham, after representing the Detroit board with the city’s plan as well. important part of the ‘grand bargain,’ Retired City Employees Association and “That (support) was kind of a water- which was getting retirees on board,” the Retired Detroit Police and Firefighters shed moment,” Plecha said. Rosen said. Association last year in mediation lead- A 2008 graduate of Thomas M. Cooley — Chad Halcom

Congrats to Joe Saad for being selected as one of Crain’s 2015 40 Under 40. THANK YOU DETROIT FOR SUPPORTING US!

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CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 25 Jim Richards, 39 Gabe Rubin, 36 40 CEO, Total Security Founder-CEO, Gamersaloon.com, Royal Oak under Solutions Inc., Fowlerville 40 BIGGEST ACHIEVEMENT: Founding and BIGGEST ACHIEVEMENT: growing skill-based gaming prize and tourna- Bought out three of his four partment service Gamersaloon. ners in the company, giving him a 75 percent stake, while growing CURRENT GOAL: Launching a redesigned ver- the company. sion of Gamersaloon’s website by early Novem- ber, and adding multiplayer online battle arena CURRENT GOAL: Hit $20 mil- gaming service before year’s end. lion in revenue within a few years. It’s come a long way from founder Gabe Jim Richards likes to be the first Rubin’s basement in Huntington Woods in 2006, one to show up in the morning at but Rubin still sees new directions for Royal Oak- his company, Total Security Solu- based Gamersaloon to go. tions. He often arrives at 5:30 a.m., Now at nine employees including eight at its turns on the lights and starts the Royal Oak headquarters, Gamersaloon is on coffee pots brewing. track to clear $13 million in total online wagers His company makes custom or prizes in matches among its users, Rubin bulletproof barriers for judges’ said. chambers, electric companies and Last year’s revenue was $7.2 million; Rubin other sensitive settings. They are said this year’s sales are on track to hit $12 mil- high-security materials that cus- lion. tomers often want delivered in Rubin estimates 860,000 people have regis- just a few days or weeks. Customer tered and at least 150,000 have played at least service and quick turnarounds are one match online since inception. key. About 8,000 users are regulars, who play one So while his team hustles new match or more per month. orders and finishes custom jobs, About 80 percent of revenue for Beyond Gaming new feature for multiplayer online battle arenas, Richards focuses some of his time LLC, doing business as Gamersaloon, comes a type of war strategy game that’s rapidly gaining on creating a culture that appreci- from the 14 percent service fee that each player popularity. ates staff, with weekly deliveries of deposits in a head-to-head match or wager on “I’m most proud of being able to take an idea I organic fruit and regular dough- game plays, Rubin said. had 10 years ago while just playing a game nut days. At the company barbe- The rest comes from a mix of withdrawal fees, against my brother and turning it into a success- cue in August, Richards did the premium memberships and other services. ful company,” Rubin said. “We’ve overcome cooking of ribs and pulled pork A new version of Gamersaloon.com is expect- many challenges since then.” himself. ed to launch before the end of the year, as is a — Chad Halcom On birthdays, staff members receive a $100 gift card, and there are meals and other tokens of ap- preciation in the mix to show respect and care. “I’d like to retain A-level talent as best as I can,” Richards said. The company’s growth has been strong, with 2012 revenue of about $8 million jumping to $16.5 Manufacturing brighter futures million in 2014. It’s on track to hit $18 million this year. Attention to workforce helps, but sales really took off when Total That’s our commitment to you. Security Solutions started working with a coaching firm, Whole Brain Group LLC in Ann Arbor, which got From traditional tax and accounting services Richards to try a new sales angle. to lean manufacturing design, Rehmann has He guided his company to act as a consultant to its customers, guid- the seasoned wisdom and industry experience ing architects and designers on essential to deliver focused solutions. ways to use the bulletproof barriers, rather than be a simple distributor of materials. Contact me today to learn more. “As the business has grown, I’ve probably grown just as much,” he said. He feels his skills managing people and expectations have improved. He and his father, John Richards, founded Total Security Solutions in 2004 after selling a related business to General Electric Co. Richards took over as CEO from his father in 2011, and bought out Garrett Klein, CPA, CGMA three of their partners in the last two years. His retired father main- Principal, Manufacturing Group Leader tains a 25 percent stake and is the [email protected] | 248.952.5000 sole remaining partner to Richards. — Vickie Elmer

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26 CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 40 Joe Saad, 38 under Managing partner, Diag Partners, Rochester Hills 40

BIGGEST ACHIEVEMENT: Founding Diag Partners four years ago and expanding the company to five cities.

CURRENT GOAL: Continue growing the company.

While Joe Saad ran a regional recruiting and staffing firm for 11 years, he was figuring out how he would create his own recruiting firm that would take a different approach. “Our process is more matching the personali- ty of our candidate to the culture of our clients,” Saad said. So far, this is approach is working for Diag Partners. Revenue last year hit $11 million and is projected to be $18 million this year. “In the first meeting, they did not care what we were recruiting for. They focused on learning our culture, people, environment and chem- istry,” said Jason Baranowski, president of ES3 in Rochester Hills and a Diag client. OPENING NIGHT 2015 Saad attributes the success of Diag Partners to its employees, saying the company has retained 100 percent of its internal employees since its inception in 2011. Plans call for hiring five to six in- VS. ternal and 60 to 80 external employees next year. Diag Partners has 200 external and 30 internal employees, and has offices in Pittsburgh, Cleve- land, Chicago, Los Angeles and Charlotte, N.C. Saad is a member of the Young Presidents’ Or- WED, OCT. 28 • 7:30PM ganization and sits on several boards. — Marti Benedetti

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CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 27 40 Kyle Anne under Heart & Vascular Center of Excellence Sasena, 34 40 Vice president, Level One Bank, Farmington Hills Shukri David, MD, FACC has been named System Chair of the Heart and Vascular Center of Excellence for St. John BIGGEST ACHIEVEMENT: Launching a new export lending program that earned recognition from the U.S. Small Business Providence. Administration. Dr. David has been a member of the medical staﬀ for over 25 years, including his role as Section CURRENT GOAL: To advance into a higher leadership role. Chief of Cardiology for Providence–Providence Every year, the Michigan district office of the U.S. Small Business Park Hospital in Southﬁeld and Novi, Michigan. Administration gives out an Export Lender of the Year award. Under his leadership Providence-Providence Park Larger banks that heavily market to small businesses, like Hunting- Hospital has been named a “50 Top Cardiovascular ton Bank or Comerica, are the seemingly natural fit for winning an Hospital” by Truven Health Analytics, (in the award like this. teaching hospital category), more than any other That’s why it turned heads in Southeast Michigan’s banking com- hospital in the US. munity when small newcomer Level One Bank snapped up the award in 2013. In this new role, Dr. David extends his leadership The person behind that achievement was Kyle Anne Sasena, a responsibilities to the strategic planning and vice president of the bank. She has been with Level One since it program development of cardiovascular services opened in 2007, when it was formed from scratch (as opposed to across the health system. what would soon become the common practice of buying the dis- tressed assets of a failed bank). The award to Level One caused “other banks to sit up and take notice, because the competition is great,” said John O’Gara, the Detroit-based regional manager of international trade for the SBA. Sasena saw opportunity after helping one small, local manufacturer get financing to support new business from foreign purchase orders, by arranging an SBA-backed loan through the SBA’s Export Working Capital Program. As local manufacturers stepped up their overseas business in line with the improving economy, more would need similar help, she figured. She was right and as a result, Level One earned the Export Lender of the Year award again in 2014. Level One also puts customers in touch with specialist accountants for further foreign business help, and works with the U.S. Department of Commerce’s Gold Key program that matches U.S. companies with potential overseas customers. It’s a fitting accolade for Sasena, who as a small child dreamed of becoming a banker, and played “office.” Sasena also serves on the advisory council for Henry Ford Health System’s Sandcastles grief support program for children, a program she has been volunteering with since 2002. She reads to a Detroit public school student every week through the Read to a Child program. — Gary Anglebrandt 20151012-NEWS--0028-NAT-CCI-CD_-- 10/8/2015 3:46 PM Page 1

28 CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015

Tony Saunders, 29 40 under CFO and chief restructuring officer, Wayne County 40 BIGGEST ACHIEVEMENT: A Wayne County position in charge of a critical mission for the county before the age of 30.

CURRENT GOAL: To help restore the financial health of Wayne County and to “put a dent in the universe.”

Tony Saunders kept asking himself why he was attracted to solving complex municipal finance issues, layered with politics, entrenched interests and legal hurdles. DESIGN It turns out, the 29-year-old Detroit native tasked with overseeing Wayne County’s financial restruc- AND turing had a very specific thing to point to: ADHD, a condition with which he was recently diagnosed. “We (in the county) have double the amount of ART strategic initiatives than anybody could actually imagine or manage at once,” said Saunders, the county’s chief restructuring officer and CFO. A University of Michigan graduate, Saunders was A well-thought out design, a 2011 Crain’s 20 in their 20s honoree when he was capturing your vision and imagination, chief of staff for former Detroit City Council mem- is truly a work of art. ber and President Saunteel Jenkins. Now, his fin- gerprints are all over the county’s restructuring of its $52 million structural deficit. As of Oct. 2, the county had nearly eliminated it. That’s been done through things like changes to retiree health benefits, employee pay cuts, and re- configuring county departments. And that’s just 10 months into his boss Warren Evans’ four-year term as county executive. Saunders was formerly a director at Birming- Fishbeck, Thompson, Carr & Huber, Inc. ham-based turnaround firm Conway MacKenzie architects | engineers | scientists | constructors Inc. 800.456.3824 | ftch.com , which helped steer Detroit through its historic bankruptcy. Just 26 when he became emergency manager of doing,” he said. “I miss that city a lot, actually, and Benton Harbor, Saunders picked up experience by far, that was the most important experience in that he says got him where he is today. my life.” “I was 26, and I had no idea what the hell I was — Kirk Pinho

Candice Simons, 31 Owner, Brooklyn Outdoor LLC, Detroit

BIGGEST ACHIEVEMENT: Starting an outdoor advertising firm that scored an early, big victory by landing management of the new digital signs on Cobo Center.

CURRENT GOALS: Continue growing her company while expanding her second business, J’adore Detroit, which helps nonprofits raise sponsor money for events.

Candice Simons spied a big opportunity when the new digital sign went up at Cobo Center last year. She knew her clients would love to see their messages lit up during the North American International Auto Show. So she presented the idea of ads to NAIAS and Cobo management, suggesting she could bring in revenue and showcase the sign’s capabilities during the show. They liked the idea and gave her the green light in May. She subsequently sold the idea for her to do the same work during the Detroit Bike City Expo. Then Cobo management asked her to bid on the exclusive contract to sell ads for the digital billboard throughout the year. “I’m very good at creating opportunities when opportunities don’t exist,” said Simons. Her company’s first-year sales in 2013 were $600,000 and last year hit $2.4 million. This year, boosted by Cobo and other sign deals, revenue is likely to approach $6 million. Yet Brooklyn Outdoor has only a handful of signs in the city. While it leases signs in Los Angeles, Boston, Seattle and elsewhere, about half its inventory is in Brooklyn, N.Y. That is part of the reason this self-funded Michigan billboard company came to be called Brooklyn Outdoor. An- other part: Simons, raised in Northville, spent time during her childhood at a cottage in Brooklyn, Mich., where her grandmother still lives. — Vickie Elmer 20151012-NEWS--0029-NAT-CCI-CD_-- 10/8/2015 3:47 PM Page 1

CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 29 40 Megan Spanitz, 38 Lilly Epstein Stotland, 37 under Vice president, resource development and marketing, Co-owner, general manager of business development, 40 Detroit Regional Chamber, Detroit Vesco Oil Corp., Southfield BIGGEST ACHIEVEMENT: Expand- ing the company’s geographical reach and revenue through acquisitions. BIGGEST ACHIEVEMENT: Dou- bling sponsorship dollars for the CURRENT GOAL: Expand through Mackinac Policy Conference after more acquisitions in the Midwest. taking over sponsorship management in 2008. Lilly Epstein Stotland had been planning to come home and work for her CURRENT GOAL: Create a cen- family’s company, Vesco Oil, eventually. tral team that more efficiently The turning point came Sept. 11, 2001. serves members and sponsors. Stotland was working as an investment banker at Goldman Sachs Group, Megan Spanitz faced dark days just blocks away from the World Trade when she took over sponsorships Center attack. At one point, she became for the Mackinac Policy Confer- trapped in her office, covered in dust. ence in 2008. “It was really the push that I needed to The economic collapse and the start doing what was important to me,” loss of a golf tournament had put a Stotland said. “Looking back at my work big dent in sponsorship revenue in New York, I was missing that meaning, for the Detroit Regional Chamber’s connection and history.” premier event. Vesco Oil is on its third generation of The event is critical to the family ownership. Stotland’s late grandfa- chamber’s functioning. In 2013, ther, Eugene Epstein, started the compa- tions in Cleveland, Columbus and Pitts- for example, it was responsible ny in 1947. Stotland joined the company burgh. Over the past two years, Vesco’s for bringing in $3.5 million of the in 2004 with her sister, Lena Epstein. revenue grew from $130 million to $155 nonprofit’s total $7.5 million in The Southfield-based company dis- million. The company employs over 200. revenue. By comparison, mem- tributes automotive and industrial lubri- This year, Vesco acquired Ohio-based bership dues, the second-largest cants, sourcing products from ExxonMobil, fuels and chemical distributor Britsch Inc. revenue category, brought in $2.2 Valvoline, Castrol, CAM2 and Motorcraft. Stotland said the acquisitions are a de- million. Stotland for the past 10 years has spear- fensive maneuver to fend off private eq- By this year’s conference, headed a strategy to grow through acqui- uity firms eyeing Vesco’s market. Spanitz had more than doubled sitions and by expanding distribution “We are very committed as a family to sponsorship dollars, the result of rights with the company’s key suppliers. keep Vesco as a family-owned business.” her trying new ideas for the As a result, Vesco has opened loca- — Rachelle Damico event. Spanitz greatly improved the conference in organization and flow, and in attracting brand- name speakers and C-suite atten- dees, said Sandy Baruah, chamber president and CEO. Another idea from Spanitz: Media Row, where news reporters can interview speakers before they hit the stage. It’s also a cen- IP Experience tralized location that gives atten- dees the chance to connect with speakers and get insight into the In Your Corner.® sessions for the day. In 2011, right in the middle of her efforts, Spanitz faced a big ■ Extensive experience in intellectual property, personal challenge. In July of that year, her husband passed away. contract, corporate and general business law. Her world was turned upside ■ Works with clients in strategically analyzing, down, but the culture at the chamber is what allowed her to evaluating, protecting, and enforcing their take the time she needed, she intellectual property. said. When she returned to work, she had meaningful work to dive into; 2011 also was when the chamber shifted the conference focus to more statewide issues, rather than Detroit-specific. Spanitz said that provided a boost in interest as it attracted a greater variety of speakers and sponsors. “We’ve made the conference better,” she said. “And sponsorship has allowed us to do that.” — Michelle Wilson

■ Detroit ■ Novi ■ Grand Rapids ■ Kalamazoo ■ Grand Haven ■ Lansing Contact Tim Kroninger at [email protected] 20151012-NEWS--0030-NAT-CCI-CD_-- 10/8/2015 3:55 PM Page 1

30 CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 40 under 40

Guy Suter, 36 Co-founder and CEO, Notion AI Inc.; co-founder and chairman of the board, Nutshell Inc., Ann Arbor

BIGGEST ACHIEVEMENT: Co-founding a data- is several million dollars in funding from West Coast storage business that was sold to Barracuda Networks venture capitalists and has an app in beta testing that Inc., then running it as it became Barracuda’s biggest uses artificial intelligence to organize email, which he business unit leading up to its 2013 IPO. hopes to have it in Apple’s App Store in November. “People are swamped in email, but any time peo- CURRENT GOAL: Creating a technology accelera- ple tried to bring automation to email, it was done in With a history of innovation, tor in Ann Arbor to serve as a hub for the city’s tech a draconian fashion,” he said. “Notion learns from community and help put Ann Arbor on the national you and predicts what you want to do with email Detroit Country Day School is a proven academic leader map as a major technology center. when it comes in, and then gives you the choice.” that provides a well-rounded liberal arts education In September, Nutshell, which makes customer re- to the next generation of global citizens. In 2005, Guy Suter and Lindsay Snider founded a lationship management software, announced it had Carlisle, Pa.-based company called BitLeap, which raised a funding round of several million dollars, Visit our Open House• 1-3 p.m. did data backup and recovery. In 2008, they sold it which followed on two rounds totaling $2.5 million. Sunday, October 25 to Campbell, Calif.-based Barracuda Networks Inc. Plans are to hire 10 to 12 people to beef up engi- and moved to Ann Arbor, where Barracuda had an neering and sales. It employs 24 and expects to dou- 248.646.7717 www.dcds.edu office. ble revenue this year to more than $2 million. Snider was director of engineering for the office, Through Cahoots Holdings LLC, Suter, Nutshell LOWER SCHOOL JUNIOR SCHOOL MIDDLE SCHOOL UPPER SCHOOL Pre-K3 – 2nd grade 3rd – 5th grade 6th – 8th grade 9th – 12th grade while Suter ran his former company, now rechris- CEO Joe Malcoun and Ian Berry, a co-founder and tened Barracuda Backup. chief technology officer at Notion, recently bought By Barracuda’s IPO, Backup was its biggest revenue three buildings in downtown Ann Arbor. producer. Suter and Snider left Barracuda just before Suter said the plan is to serve as a social hub for

the IPO to devote more time to two other ventures, Ann Arbor’s growing tech community and house Nutshell and Notion AI. Suter is chairman of Nutshell startups that can’t afford Ann Arbor rents. but spends most of his time on Notion. “This is a passion for me,” said Suter. Notion employs 12 and has raised what Suter said — Tom Henderson

Michael Taylor, 33 Director, Group Sales, Palace Sports and Entertainment/ Detroit Pistons, Auburn Hills

BIGGEST ACHIEVEMENT: Building a team each package work for the group, or offer to help that was able to increase group ticket sales 125 a school with a fundraiser. percent over the last two years. “In everything we do, we rarely talk about pur- chasing tickets. We talk about how the tickets can CURRENT GOAL: Increase group ticket sales benefit that person,” Taylor said. “People want to further and become the No. 1 ticket sales team in know how you can help them.” professional sports. That approach helped Taylor wrap up the 2014-2015 sea- Michael Taylor leads a team he’s proud of at the son having sold Palace of Auburn Hills, and it’s not the one on the more group tick- basketball court. ets and generat- Taylor got his start in the National Basketball ed more revenue Association as an intern for the Chicago Bulls in than the Pistons 2008. In 2011, he joined Palace Sports and Enter- had in any of the tainment, a management arm for Detroit Pistons last seven years. owner Tom Gores, in Auburn Hills. “When you By January 2013, Taylor was promoted to direc- look at your night, tor of group sales. Since then, group sales have it’s not just that gone up 125 percent. That’s taken the team from you came to a last in group sales among teams to ninth. sporting event, In one Pistons game against the Chicago Bulls but that you’ve on March 21 this year, Palace Sports sold the had a grand expe- most group tickets in NBA history, at a count of rience from the about 9,000. Taylor called it a “perfect storm.” time you walked Success starts with training the group sales in the door,” he team to not just try to sell tickets, but to sell an ex- said. perience, Taylor said. They can offer features like — Michelle time on the court and food packages to make Wilson 20151012-NEWS--0031-NAT-CCI-CD_-- 10/8/2015 3:47 PM Page 1

CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 31 40 Tiffany Taylor, 32 Parker Tracey, 38 under Executive director, Teach for America-Detroit, Detroit Manager of multi-state government affairs, 40 DTE Energy Co., Detroit BIGGEST ACHIEVEMENT: back to Detroit to make the com- BIGGEST ACHIEVEMENT: Managing the government lobbying side of a Leading the Detroit chapter of munity even stronger.” historic shift underway at DTE. Teach for America in her home- Taylor said she was called town where she attended school, back to Detroit to do just that, CURRENT GOAL: Support growth of the nonutility sides of DTE’s business so including increasing diversity when she received a call to help the company can build a strong portfolio from which to fund investments in within the program. start the Teach for America chap- emerging energy technologies. ter here in 2010. CURRENT GOAL:Working with She served with the teacher DTE Energy is in the early stages of a long-term infrastructure upgrade that teachers and other supporters to- leadership development team its CEO Gerry Anderson estimated will cost the company $8 billion. ward a goal that at least 95 per- and as vice president for regional The effort relies heavily on replacing coal with cleaner natural gas. To do cent of Detroit schoolchildren operations before becoming ex- that, DTE needs to get lots of natural gas to its plants — via pipelines. graduate from high school ready ecutive director in January 2014. That’s where Parker Tracey comes in. for college and work. The organization has stepped Tracey’s weeks consist of meeting with officials from the up efforts to recruit a more di- smallest hamlets to the nation’s capital as DTE seeks to Tiffany Taylor joined Teach for verse corps in recent years, in- cross municipal and state boundaries with pipes full of America in 2004, teaching sixth- cluding launching campaigns to flammable material. grade special education in encourage more applicants DTE is investing $1 billion to build 250 miles of Philadelphia. She was attracted among black men and young natural gas pipeline to bring gas to Michigan. The to education because of inspir- adults with federal Deferred Ac- utility overall expects to invest at least $2 billion in ing teachers and a desire to re- tion for Childhood Arrivals sta- its gas storage and pipelines division in the next turn the favor in her community. tus, designated for people who five years. “As someone who grew up in entered the country illegally as Tracey has worked with dozens of govern- this city and attended its public children. ments on this project alone. Her other work has schools, I’ve seen firsthand the Taylor said the Detroit corps put her before hundreds of governments across potential of our young people to has grown among people of the country. Tracey oversees government lobby- be successful and contribute in color from roughly a quarter in ing in 23 states in all. really positive ways to our re- 2010 to 55 percent incoming this The utility sector is undergoing a regulatory gion,” said Taylor. year. overhaul, too. “It’s been static for so long and now “We have a motto here that we The percentage of teachers it’s entering a dynamic space,” Tracey said. call our North Star that guides who are native to Michigan also “What’s fascinating to me is being at that our work,” she added. “We want has grown from nearly 15 per- nexus between government and industry.” our students to go to college, cent in 2010 to half this year. — Gary Anglebrandt through college and then come — Lindsay VanHulle

Thesalutes Kresge Foundation Benjamin S. Kennedy Crain’s 40 Under 40 Class of 2015

Expanding opportunities in America’s cities 20151012-NEWS--0032-NAT-CCI-CD_-- 10/8/2015 3:48 PM Page 1

32 CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 Edgar Vann III, 34 40 under Director, government relations, Wayne County Community College District, Detroit 40 BIGGEST ACHIEVEMENT: Helped put of dropping out, staying in. That’s partly with first-generational students, we tried in place a system that targets students at because of an “early alert system” that to come up with a way to really get them risk of dropping out and enables early in- Edgar Vann III took the lead in rolling involved,” Vann said. tervention, increasing student success out. Faculty assessed students on factors and retention rates. In 2008, the college joined Achieving ranging from attendance to quiz results. the Dream, a national initiative aimed at Teams of staff were formed to phone stu- CURRENT GOAL: To secure more state helping community college students dents at risk of failing and determine their funds to build the college’s workforce de- succeed. As part of those efforts, Vann problems and needs — like transporta- velopment programs and skilled-trades and other officials observed that stu- tion or child care. Then, Vann said, “we training. dents ages 18-23 who were the first in began connecting them to resources.” their immediate family to attend college Retention rates for students the system Over the last several years, Wayne were at particularly high risk of dropping has touched have risen from around County Community College District has out. 21 percent to about 32 percent, Vann said. seen more of its students that were at risk “Knowing that we had this problem — Amy Lane

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CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 33 40 Tommey Walker, 29 Michael Yessian, 36 under Founder and owner, Detroit vs. Everybody LLC, Detroit Partner and head of production, Yessian Music Inc., 40 Farmington Hills BIGGEST ACHIEVEMENT: Ex- panding the company’s footprint na- BIGGEST ACHIEVEMENT: Seeing his brand tionally and overseas while growing in the national spotlight, including on “Amer- revenue. ican Idol” and “The Colbert Report.” CURRENT GOAL: Diversify the CURRENT GOAL: Expanding the brand and client base and grow revenue by mov- getting more products into the line. ing more into gaming and film.

In 2012, Tommey Walker took a trip to Cali- Up to 4 million visitors this year fornia. When he got to his hotel and turned will hear music wafting inside the on the television, Kwame Kilpatrick was on One World Observatory that opened the screen. And the news wasn’t good. in May atop One World Trade Center. Seeing the face of Detroit’s former mayor The sounds are the work of Farm- on a television in California made him think ington Hills-based Yessian Music Inc. about how much the culture of this Midwest- Michael Yessian, head of produc- ern city impacts society. Lately, the dialogue tion at the company his father found- had been all about Detroit’s downfalls. He felt ed in 1971, oversaw production and Detroit didn’t get the credit for all the good it creative direction for the music and had imparted to the country. That’s when he sound design at the $100 million ob- came up with the phrase that would catapult servatory, which crowns the 104- his new business: Detroit vs. Everybody. story New York skyscraper. “I always say not to complain but to con- “It was a massive one-and-a-half tribute,” Walker said. “This is our contribu- year undertaking that was one of the and employs 32. The company now tion to the restoration of Detroit.” most fulfilling experiences of my life,” has staff composers and uses more In late 2012, he launched his company, De- said Yessian. than 100 freelancers. In 2014, revenue troit vs. Everybody LLC. Now in its third year, Last year, Yessian Music paid about hit $6 million. the clothing brand has an online store, a flag- $2.5 million for 3,500 square feet of Yessian composes scores for televi- ship store in Greektown, with a kids’ store at- space — an entire floor bought in a sion, movies, advertisements and co-op building — on New York’s Fifth video games, and does licensing tached, and a location in Eastern Avenue after eight years leasing an of- work. It also does music for TV net- Market that opened this past sum- fice elsewhere in the city. works, such as the music openings mer. The company also has offices in for ESPN’s college football games. From 2013 to 2014, the brand Los Angeles and Hamburg, Germany, — Bill Shea increased sales by 75 percent, to 26,000 units sold. Walker is especially proud of the fact that he’s been able to create 15 jobs in the city. Now Walker is the one in the national spotlight. In July 2013, De- troit Free Press editor Stephen Henderson presented TV host Stephen Colbert with a Detroit vs. Everybody hoodie on the air. Keith WHAT CAN MICHIGAN DO TO ATTRACT NEW Urban also wore a T-shirt bearing the slogan while appearing on “American Idol.” BUSINESS AND CREATE GOOD JOBS? The brand even lends its name to Eminem’s 2015 song “Detroit vs. Everybody,” with the gear itself JOIN US FOR A PANEL DISCUSSION featured in the music video. Beyond the original slogan, there’s also gear in the online store THURSDAY, OCTOBER 22, 2015 to represent everyone’s struggle against societal problems, such as 7:30–9:30 a.m. “Everybody vs. Cancer,” “Every- Networking breakfast included body vs. Poverty” and “Everybody vs. Hatred.” University of Michigan-Dearborn Walker said the spirit of “vs. Everybody” is not strictly for De- Fairlane Center South | 19000 Hubbard Dr. | Dearborn, MI 48126 troiters. It can be expanded to anyone who feels like it’s them PANELISTS: against the world. “I envisioned a brand that Chris Holman, Founder and CEO, Michigan Business Network would have a place in everybody’s Maureen Krauss, Vice President, Business Attraction, Detroit Regional Chamber closet,” Walker said. “That senti- Tony Vernaci, Vice President, Business Attraction, Michigan Economic Development Corporation ment, it touches everybody. ... Alex Violassi, Director, Automation Alley Technology Center You’re going to feel this way in Moderated by Dr. Brian Patrick Green, Czarnecki Collegiate Professor, University of Michigan–Dearborn every part of your life.” — Michelle Wilson INFO AND REGISTRATION AT UMDEARBORN.EDU/COB/EXECSPEAKER DBpageAD_DBpageAD.qxd 10/2/2015 3:38 PM Page 1

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ompanies in the U.S. are advance faster in their professions. Alternatively, larger course of managing the new, younger workforce, there is C implementing new, effective companies must act more current and hip with their an opportunity to adjust the corporate culture. To this ways to generate growth and move offerings in order to compete with smaller businesses generation, these criteria can be more important than pay. forward in a fast-paced business with more creative and nimble benefits. As a result, a clear statement of purpose and community environment. According to a recent Since millennials — who will comprise 75 percent of engagement are important parts of a successful culture Bank of America Merrill Lynch the global workforce by 2025 — seek rapid growth in their that can build brand favorability. Consequently, companies survey, U.S. economic ratings are careers, employers are required to closely match are incorporating community events into client interaction James Carpenter Market Manager up significantly since the beginning expectations where possible. In addition to offering and employees’ schedules, such as paid time off for Bank of America Merrill Lynch of 2015 and the outlook for revenue benefits such as competitive 401(k), financial literacy volunteerism. growth is strong — 72 percent of training can reduce young workers’ anxieties about money More flexible hours, family-friendly schedules, and CFOs report earnings are on target or and lead to more satisfied, loyal and engaged employees. extended leave to care for aging parents are also critical have exceeded plan. In fact, financial wellness programs are becoming the new components in packages for all workers. To capture growth for the long term, normal in workplace benefits, and include discussions For long-term, experienced staff, achieving work-life acquiring and retaining talent is key to around debt management, budgeting, college savings and balance is top of mind. Offering consulting opportunities seizing opportunities for expansion. personal savings habits. In short, employers are improving that allow them to travel and spend time with their In many cases, hiring and developing the personal lives of their employees, not just boosting grandchildren is an important benefit. the right talent is more important than financial acumen. Not surprisingly, in the Bank of America Going forward, CFOs have to bridge the gap between Matthew Elliott finding financing for a facility or plant Merrill Lynch 2015 Workplace Benefits Report, 81 percent Michigan State President HR and finance, developing competitive compensation Bank of America expansion. Before taking on new of mid-size companies said financial wellness will be a Merrill Lynch structures that not only bring in and retain the best talent business initiatives, CFOs are paying standard benefit program 10 years from now. but support company culture. more attention to whether they can staff — rather than finance — a new project. But profound RECOGNIZING GENERATIONAL DIFFERENCES For more on how your Detroit local business challenges remain, including a workforce nearing retire- Understanding what motivates the new workforce and its can attract and retain the strongest workforce for ment age (especially in manufacturing), intergenerational needs will help employers maintain a competitive edge in future growth, contact [email protected] differences between millennials and baby boomers, and attracting talent. Millennials are seeking meaningful work or [email protected]. identifying qualified, work-ready candidates. from an employer committed to societal issues. In the CFOs are being held accountable to help solve the talent-growth equation, requiring them to expand beyond their core responsibilities. Here, a team of BofAML executives that includes James Carpenter, market manager, and Matthew Elliott, Michigan state president, reveal best practices related to finding highly skilled workers.

ATTRACTING THE STRONGEST WORKFORCE When talent is a scarce resource, CFOs will engage in talent development. This can take the form of managing the HR function, optimizing wages and benefits, and developing competitive compensation structures that fit the company’s financial plan. In many cases, CFOs, knowing the financial capacity the firm has, need to take the lead with creative ideas and methods to attract talent from competitors (or retain their best people), be prepared to increase salaries or to invest in training employees to fill gaps. corner stone With a shallow talent pool for skilled workers, companies need to start early in their recruitment, partnering with colleges, universities and technical schools to create curriculum and degree programs that produce work-ready Helping you build business success in Detroit on graduates. When possible, companies are inviting students a strong foundation of community spirit, expert to tour their operations and learn about career opportunities before they enroll in training programs. analyses, sound advice and trust. That’s the power of a local connection, with you year by year, TRANSFERRING “TRIBAL” KNOWLEDGE According to the Pew Research Center, an estimated wherever you want to grow. 10,000 baby boomers turn 65 every day. As this broad trend becomes a reality for many companies, CFOs need bofaml.com/yourcorner to partner with HR and benefits departments to develop hiring strategies to replace and educate those workers. For companies with aging workforces, managing the transfer of firm-specific, or “tribal,” knowledge to the younger generations is critical. Mid-size companies may be able to overcome smaller recruiting budgets by emphasizing that younger workers can stand out, be recognized for their contributions and For marketing disclaimer, visit bankofamerica.com/disclaimer. ©2015 Bank of America Corporation 08-15-0885.I 20151012-NEWS--0035-NAT-CCI-CD_-- 10/8/2015 1:46 PM Page 1

CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 35 SPECIAL REPORT: MICHIGAN

MARY KRAMER Publisher [email protected] Schools’goal: BUSINESS Work together Michigan’s 15 public universities, for the most part, share the same issues. State aid took a big hit in 2011 and is slowly recovering, but public pressure is on to keep tuition low while costs are going up. The number of high school graduates is going down, so most schools compete for the same “customers.” And online-degree competition Vineyard — whether it’s for-profit schools or a recognized brand such as Ari- zona State University — is fierce. So last week’s gathering of university presidents and elected and appointed trustees at Grand Valley State University’s Grand Rapids campus was timely. Gov. Rick Sny- VIEWS der used his power to convene, and more than 100 administrators and trustees accepted. (As a Grand Valley trustee, I was among them.) The governor’s goal? Trying to get the universities to find ways to collaborate versus compete. Rule change uncorks chance to College presidents get together often; trustees, not so much. So linger longer over wine, scenery there was much to talk about among some accomplished vol- Todd Oosterhouse, who co-owns Bonobo unteers who love their institutions. By Jacob Wheeler an old-school typewriter and board games fill Winery with his brother, HGTV star Carter The trustee names included: Special to Crain’s Detroit Business the room’s shelves. At the south end, a gallery Oosterhouse, said August tasting fees and Tricia Keith, Blue Cross Blue Shield t Bonobo Winery, on Traverse City’s showcases the work of painter Stephanie by-the-glass sales accounted for 40 percent of of Michigan (Central Michigan); Ru- Old Mission Peninsula, two young Schlatter from her series “On the Michigan revenue. pesh Srivastana, CEO of Youngsoft couples sit on comfortable couch- Wine Trail.” Inc. (Ferris State); John Kennedy, A es next to a fireplace. They rock On busy weekends, Bonobo sometimes which they rushed out the door and on to the CEO of Autocam Medical; Kate Pew dozing infants, sip Chardonnay and gaze out opens extra tasting bars in these rooms. The next winery. Wolters, chair of the Steelcase the windows at West Grand Traverse Bay as 3,000-square-foot space has a capacity of 400 Proponents of the rule change say that Foundation (GVSU); Joel Ferguson, the receding sun bathes the Leelanau Penin- people, which means that the winery never charging $5 per tasting allows customers real estate developer (Michigan sula in a majestic orange. feels crowded. more time to enjoy their wine, linger longer State); and Julie Fream, CEO, auto No pourer hurries them to empty their Bonobo, which opened last December, and absorb the gorgeous glacial vistas, order supplier trade group OESA (Michi- glasses and taste the next ounce. No tour bus takes advantage of a change five years ago to food from the menu, and ultimately develop a gan Tech). in the parking lot beckons them toward the Michigan’s liquor law, which allows wineries relationship with the winery. Some also sell Ideas were bouncing around next vineyard. Bonobo’s guests have swapped to charge for wine tasting and sell glasses of wine by the glass — $7-$10 in the case of every breakout room. A couple are the frenetic wine tour of old for this leisurely wine on site. Bonobo. All this means more money. worth noting. lounge experience. Here they can order a Prior to the rule change, Michigan wineries “We wanted to do something different,” First, Michigan’s reputation for glass, or share a bottle, and nibble from a could offer only free tastes of up to five one- said Todd Oosterhouse, who owns Bonobo higher education is (as Donald menu created by celebrity chef Mario Batali, ounce pours. To recoup costs, they typically with his brother, HGTV host Carter Ooster- Trump might say) HUGE. So as who splits his time between New York City sold the customer a branded tasting glass for house. “This is a lounge where you can hang the traditional college-age cus- and Northport. $3 or $5. As a result, the wine experience often out and not feel rushed. Grab a glass of wine tomer declines, why not promote In the “library” at the north end of the win- resembled a dash through the turnstyles, and enjoy yourself.” as a state to prospective students ery, a millennial works from his laptop, while where wine tourists were given just enough outside Michigan? Those non- sipping. Books, binoculars, an antique scale, vino to encourage them to buy a bottle, after SEE WINERIES, PAGE 36 Michigan students also might stick around to fill some of the thou- sands of open jobs in Michigan. Second, studies have shown Michigan has a significant number of residents who have “stopped out,” not dropped out. If universities collaborated regional- ly with programs and support, some may be lured back to complete a degree. Those ideas are, well, just ideas. But kudos to a governor who stayed the day to listen to people who were either elected or appointed to help guide one of the state’s biggest investments: higher education. PHOTOS BY JOHN RUSSELL Bonobo Winery designed its tasting room on the Old Mission Peninsula to provide spaces for customers to linger with a glass of wine and small plates. 20151012-NEWS--0035,0036,0037-NAT-CCI-CD_-- 10/8/2015 1:49 PM Page 2

36 CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 SPECIAL REPORT: MICHIGAN BUSINESS

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ITC operates, builds and maintains the region’s JOHN RUSSELL electric transmission infrastructure. We’re a Michigan- In his Old Mission Peninsula tasting room, Bonobo Winery owner Todd Oosterhouse (left) helps visitors Chuck Millbrook,Kim Millbrook,Janee Penfield and Dave based company working hard to improve electric Penfield, all from Grand Ledge. reliability and increase electric transmission capacity throughout the Midwest. the deck, ordering glasses of wine or WINERIES small plates. FROM PAGE 35 “It’s worth the extra cost for the view and the experience. The light is We’re ITC – your energy superhighway. Bonobo stays open until 9 p.m. incredible here when the sun first six nights a week, and until 6 p.m. comes up, giving the winery a on Sunday. whole different look. And we some- Oosterhouse estimates that for times see a bald eagle flying by. the month of August, bottle sales “Over the last 4-5 years, any new represented 40 percent of revenues, winery being built will offer some- glass sales accounted for 20 per- where to sit and have a glass of wine cent, tastings were 20 percent, and — to experience more than just the www.itctransco.com food and gift shop sales rounded tasting.” out the total. On a recent Saturday Contrast that with the days of in August, Bonobo welcomed 800 free tastings — which, Brys said, people through its doors, and more were a drain on the winery’s costs than a quarter of them left with a and caused other problems. bottle in hand. “The free tastes got to be a large The winery expects revenue of component of our expenses, so we $1.2 million in its first year, Ooster- cut down on the size of the pour. house said. You’d limit the number of Up the road at Brys Es- tastes you gave people, tate, visitors can linger in which worked against the tasting room or ascend them having a comfortable the stairs to the winery’s experience. Plus, when you outdoor deck, which over- gave away free tastings, it looks 48 acres of wasn’t uncommon for peo- grapevines and East Grand ple to go from one winery Traverse Bay in the dis- to the next, and get drunk. tance. Brys’ deck is known Carter If you give people some- for its bridge over the vines, Oosterhouse: thing for free, they’ll abuse which has become a desti- HGTV star co-owns it.” nation for everything from winery. Like Brys, Round Barn cellphone selfies to mar- near Three Oaks also re- riage proposals. coups the $5 tasting fee if you buy “People immediately put us on three bottles. Winemaker Matt Mo- social media,” said owner Walter ersch believes that Round Barn was Brys. “The bridge is the only one we one of the first in southwest Michi- know of in Michigan. What a great gan to charge for tasting. marketing tool.” “We basically went from giving Brys is celebrating its 10th an- away product to having a service niversary in 2015, but it didn’t ex- that pays for the overhead,” said pand the deck and offer more out- Moersch, who estimates that 70 door seating until the law change percent of Round Barn’s sales are re- allowed the winery to capitalize on tail. guests that linger. A big advantage of selling directly “You can sit at our outdoor deck to customers on site is that it allows and experience the vineyard,” said wineries — especially new wineries Brys. “That’s been a boon to visita- — to build a relationship with their tion. If people like the wine, they’ll clientele, said Linda Jones of the come back, but if they just get a tast- Lansing-based Michigan Grape and ing, they might go elsewhere.” Wine Industry Council. Brys estimated that the winery “Wineries can interact directly received 650 paid tasters on a recent with consumers to learn what they Saturday in August. On Saturdays, like,” Jones said. “That interaction is they get to take home a glass valuable when you start a business. adorned with a Brys Estate logo on When you sell directly to the con- it — what he called, “a taste of the sumer you can retain the biggest Pure Michigan experience.” And if share of the price.” they buy three bottles, their $5 tast- The direct-to-consumer (DTC) ing fee is returned. About 20 percent route, where consumers can buy at of revenues on a busy summer the tasting room or through a wine weekend with good weather, he said, come from guests sitting on SEE NEXT PAGE 20151012-NEWS--0035,0036,0037-NAT-CCI-CD_-- 10/8/2015 1:49 PM Page 3

CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 37

SPECIAL REPORT: MICHIGAN BUSINESS

FROM PREVIOUS PAGE cording to owner Bob Jacobson, the Heart & Vascular Center of Excellence club, has exploded nationwide, tasting room represents just 12 per- thanks to the Internet. In California, cent of revenues and 7 percent of for example, an estimated 40 per- volume. Distribution makes up 88 cent of premium wine sales are percent of its sales. Leelanau Cellars made directly from the winery to still offers free wine tastings. the consumer. “We’re not a tasting room-de- DTC wine sales out of the tasting pendent winery,” said Jacobson. “It’s room represent 75-80 percent of how you introduce people to your sales at Forty-Five North, said Chan- product. But there’s a physical limit ning Sutton, tasting room manager. to what any winery can do out of Furthermore, keeping visitors on the tasting room. Then you have to Frank Poma has accepted the role of the premises makes their experi- decide whether to get into distribu- Vice President, Heart and Vascular Center of ence more enjoyable and safe. tion.” Excellence for St. John Providence. “With so many wineries now, Whether they have distribution people can become intoxicated or not, many northwest Michigan Frank is a respected administrator and leader at very quickly jumping around doing wineries have expanded their on- St. John Providence, having been with the health tastings, essentially a glass of wine site accommodations. In the past 10 system for over 40 years. Mr. Poma will also per stop,” said Sutton. “If we can years, Black Star Farms, near Suttons continue in his current role as president of St. John have a person get a glass of wine Bay, has become an agricultural River District Hospital in East China, Michigan. and sit on the patio for an hour with destination with weddings, wood- a cheese plate, it allows guests to fired pizzas and Norwegian-style not feel rushed and to enjoy the ex- fish boils. Chateau Chantal, which perience and the beauty of wine doubles as a winery and a bed and with a more in-depth understand- breakfast, offers jazz sunsets on ing.” Thursday nights and a tapas tour The quality of the glass matters, wine and food pairing. too. Wine-tasting rooms that In southwest Michigan, Dablon opened after 2010, such as Verterra Vineyards and Vineyard 2121 recently in Leland, pour into crystal glasses opened and also cater to what Jones that, according to owner Paul called the “linger longer” strategy. In Hamelin, enhance the aromatic fac- Benton Harbor, Vineyard 2121 em- tors of the wine. Verterra has a dish- ulates the strategy of many brew- washer to clean its glasses because eries by having a food truck visit on it doesn’t give away cheap glasses as Saturdays. souvenirs. “What you’re seeing now is “It gives the customer a better ex- wineries expanding their outdoor perience. Today we serve different facilities,” said Hamelin of Verterra, types of wine in different crystal which opened its tasting room in glasses and sparkling wine in a downtown Leland in 2011. Next champagne flute,” Hamelin said. summer Verterra will sell wine and Linda Jones of the wine council food in its vineyard, eight miles has also observed that more and north of town. “We’ll be giving visi- more wine consumers want a tors the chance to sit out under- leisurely experience when they can neath a tree, amidst our vines.” pick one winery to sit and chat with The Michigan wine industry, friends, instead of hitting five differ- which started in earnest just 15 ent locations for tasting flights. years ago, now has 120 wineries “This way they spend more and tasting rooms and generates money at, and are more loyal to, a $300 million in economic impact. particular winery,” she said. “That’s Just as important, it’s the perfect ve- the model Bonobo was created hicle for showcasing the state’s rur- around.” al beauty. Most wineries develop their “Wine tourism is a very impor- brand through the tasting room, tant part of the Pure Michigan said Jones. Then they might gradu- tourism experience,” said Jones, ate to an online buyers club, with who contrasts wine marketing with Business Owner occasional on-site events and par- the state’s surging beer industry, ties. Some keep the direct-to-con- which manifests itself through an sumer model. Others move to a dis- urban, often nocturnal experience. and Family tributor or sell directly to “When you visit wineries in rural restaurants. areas, you feel engaged with our Dynamics Leelanau Cellars is one winery that scenic beauty and agriculture. Peo- does have a distributor, and tasting ple welcome that educational as- Business Owners often face unique room sales are not as crucial. Ac- pect.” Ⅲ issues when there is family member involvement in the business.

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JOHN RUSSELL Pinot Noir grapes in the Bonobo Winery vineyard. PN Full pg_DBpageAD.qxd 8/5/2015 3:56 PM Page 1

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40 CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 WORLD WATCH WHERE MICHIGAN DOES BUSINESS Bissell Homecare Inc. Based: Walker Operations: International trading company located in Amsterdam Amsterdam, Employees: 17 Lijnden Nijkerk Products/Services: Homecare products including the Vac&Steam, NETHERLANDS Rotterdam Lift-Off Steam Mop, Powerfresh Steam Mop, Steam Mop Select, the Breda Steam Shot and Steam Accessories. Born Top executive: Bart De Vos, man- GERMANY aging director BELGIUM Clients: Retailers including Bol.com, Coolblue, Kijkshop and Vivolanda FRANCE More information: The Amsterdam office manages all the international MSX INTERNATIONAL countries outside the U.S., Australia MSX International has a headquarters in Nijkerk. and Canada. THE NETHERLANDS ith a 2014 GDP of $866.4 billion, The Netherlands has the FCA U.S. Top executive: Johan Claassen, Cooper-Standard 28th-largest economy in the world, according to the CIA managing director Automotive Inc. W World Factbook, and the sixth-largest in the European Union. Operations: One location in Lijn- Clients: Private customers, fleet The Netherlands acts as a transportation hub in Europe, and some of den, which handles brands, mar- and lease customers Based: Novi its largest industries include food processing, chemicals and electrical keting, sales, after-sales, public rela- Operations: One administrative machinery. In 2014, the country saw a GDP growth of 0.8 percent. tions, human resources and International Automotive office handling tax, treasury, ac- The Netherland’s largest imports are machinery and transportation technical support Components Group counting and engineering in Ams- equipment, foodstuffs, clothing and chemicals. Its biggest import part- Employees: 140 terdam ners are Germany (14.5 percent), China (13 percent), Belgium (8.4 per- Products/Services: FCA Nether- Based: Southfield Employees: 5 cent) and the United States (6.5 percent). lands is 100 percent owned by Fiat Operations: One manufacturing Products/Services: Tax, treasury, The country’s largest exports are chemicals, fuels, foodstuffs, and ma- Chrysler Automobiles; the dealers sell facility in Born accounting and engineering chinery and equipment. Its biggest export partners are Germany (25.3 products and offer services. Some Employees: 450 Top executive: Maartan Van Den percent), Belgium (12.9 percent), the United Kingdom (8.9 percent) and products include Fiat, Abarth, Alfa Products/Services: Door panels, Berg Sr., director of treasury and tax France (8.6 percent). Romeo, Fiat Professional, Jeep and instrument panels, pillars and cen- for Europe Crain’s World Watch report showcases companies that are leaders in Lancia. ter consoles global markets and those that are expanding. Each World Watch fea- Top executive: Alejandro Noriega, Top executive: Damian Carter, Domino’s Pizza Inc. tures a different country. If you know of a Michigan company that ex- managing director senior vice president of hard trim ports, manufactures abroad or has facilities abroad, email Gary Piatek, operations Based: Ann Arbor senior editor, at [email protected]. General Motors Co. Operations: 160 pizza stores Inteva Products LLC throughout the country and one of- Coming up Operations: Marketing and after- fice and a supply chain in Rotter- November: China December: Iraq sales office in Breda Based: Troy dam Employees: 130 Operations: One support center Employees: 3,200 Products/Services: Sales and mar- in Amsterdam Products/Services: Pizza, pasta, Top executive: Andrew Rennie, prises for Europe keting for the Opel brand and after- Employees: 15 chicken, salads, desserts, soft drinks president of Domino’s Pizza Enter- Clients: Retail pizza customers sales for Opel and Chevrolet Products/Services: Central pro- curement, IT support and data center operations Top executive: Frank Adriaanse, director of supply chain management MSX International

Based: Detroit Operations: Headquarters in Nijk- erk, which also is the headquarters for MSXI’s Benelux business unit; a branch in Belgium. Employees: 90 Products: MSXI’s Retail Network Solutions provides parts and accessories sales programs, dealer standards and process improvements, training, technical support services and warranty solutions to vehicle manufacturers. Top executives: Stéphane Miche- neau, operations director, Benelux and Central and Eastern Europe; Johan Kloosterboer, sales and operations manager Clients: BMW, Fiat, Ford Motor Co., General Motors Co., Hyundai, Jaguar Land Rover, Mercedes, PSA Peugeot Citroën, Renault-Nissan Alliance, Toy- ota, Volkswagen Group and Volvo. GENERAL MOTORS CO. Natalie Broda General Motors Co.has a marketing and after-sales office in Breda. It employs 130 workers. 20151012-NEWS--0041-NAT-CCI-CD_-- 10/9/2015 11:28 AM Page 1

CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 41 SPECIAL REPORT: SECOND STAGE WHEN IS the recipe RIGHT FOR SELLING? or entrepreneurs to sell nies with a secret sauce. Those with their companies is no a proprietary, differentiated prod- light matter. Like watch- uct or service “are garnering record F ing a teenager head off to valuations in today’s marketplace,” college, letting go of a company built according to the report. Path to the Garden Fresh deal from scratch is an experience filled That would fit the description of with mixed emotions and concerns. this month’s featured company, Gar- This is an experience many own- den Fresh Gourmet, the maker of Founders took a decade to pick right buyer for Ferndale company ers are doubtless feeling pressure to Garden Fresh Salsa. engage in. That’s because valuations While business owners might un- are high right now — really high. derstandably feel tempted to sur- By Rachelle Damico most doubling every year. More cant debt, and although that was “In my 16 years of doing M&A, render their cherished companies Special to Crain’s Detroit Business space was needed for employees, getting paid off, the company was valuations are as high as I’ve seen to this frothy market, they should The sale of Garden Fresh Gourmet facilities and equipment, includ- shipping and producing more them,” said Peter Roth, transactions resist the urge to rush the process will surely go down as one of the ing another high-pressure pro- than a million units per week. attorney and partner at Varnum LLP. for fear the market will change. biggest deals in Southeast Michi- cessing machine, which keeps the “I didn’t feel like I had enough “You have a lot of private equity Because, as Garden Fresh co- gan this year. salsa fresh without needing to reserved cash if there was a catas- money chasing deals, and banks are founder Jack Aronson and others But it didn’t happen overnight. freeze it or add preservatives. trophe of some sort, like a recall, to being loose in lending money. Busi- explained, time was the factor that By the time the sale came, Jack and “Keeping up with the infrastruc- stay in business,” Aronson said. nesses are trading or selling at high mattered most in making them feel Annette Aronson had spent 10 ture was challenging,” Aronson “My biggest fear was to have to lay single-digit multiples. ... If selling good about having sold their com- years giving an ear to interested said. “I started worrying about not someone off.” the business is something that is in panies. They spent the time to find parties, including some of the having enough protection for our In 2005, the couple began con- your future, now is about the best the right buyer that served not just biggest food companies in the workforce if there was some kind sidering offers to sell. time to do it.” their financial needs — but also country. of financial emergency.” One interested buyer from a top Aggressive lending is allowing en- those of the company and its em- The slow, contemplative ap- The company has about 450 food company wanted to merge trepreneurs to get “more favorable ployees whom they worked so hard proach was in keeping with a busi- employees. Last year, revenue was with Garden Fresh. Jack and An- terms, creative financing and financ- to develop. ness the Aronsons had worked so $110 million. ing based on cash flow rather than And for those concerned they hard to nurture and grow from the Garden Fresh also had signifi- SEE SALSA, PAGE 42 hard assets,” said Rajesh Kothari, might miss the boat, Roth said that ground up — they weren’t going to founder and managing director at while high valuations won’t last for- let it go to just anyone. They’d Cascade Partners LLC in Southfield. ever, he does believe they will re- started making salsa in five-gallon Middle-market deals increased main high into early 2016. buckets at their Ferndale restau- 16 percent in the first half of this “If you’re thinking about selling, rant, Clubhouse Bar-B-Q, in 1997. year compared with the first half of start the process now to maximize That same year, they founded Gar- last year, according to a market up- your value. It’s not an overnight den Fresh. date from Birmingham-based Quar- process. It could take four to eight Garden Fresh makes refrigerat- ton Partners. Financial and strategic months,” he said. ed salsa, hummus and dips. The buyers both have surpluses of capi- At any rate, premature sales are Ferndale-based company also tal to spend, making the middle never a good idea. sells tortilla chips. market “highly attractive for sell- “If you’re not ready, you shouldn’t The couple, who live and grew ers,” the report said. sell your business just because valu- up in Ferndale, didn’t always plan That’s especially true for compa- ations are high,” Roth said. on selling the family company they enjoyed running for more than 17 years. “This community has helped us Inside along our whole journey,” Jack Aronson said. “We wouldn’t walk A case study on the value of vetting suitors, Page 43 away from that.” LARRY PEPLIN Tips for selling a business, Page 44 However, Garden Fresh grew so JackAronson shopped around before finding a buyer for his fresh salsa business, fast that, at times, revenue was al- Garden Fresh Gourmet. 20151012-NEWS--0041,0042,0043,0044-NAT-CCI-CD_-- 10/9/2015 11:31 AM Page 2

42 CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 SPECIAL REPORT: SECOND STAGE “When you get to a certain Jack and Annette flew out to tour For example, Campbell gave Gar- SALSA the Bolthouse Farms facilities in den Fresh employees a 2 percent FROM PAGE 41 size, to continue to compete Bakersfield, Calif., early this year. raise and beefed up their 401(k) and grow you need the “It was the perfect fit and culture plans. nette flew to California and a full for us,” Aronson said. “They had the “We had already given out rais- day was planned for the couple. resources of a Fortune 500 same values, interest and qualities es,” Aronson said. “They didn’t have However, Jack’s mood was soured company.” that we did.” to do that.” when he saw a CEO talking down to In May of this year, Campbell If Aronson had the market winds an employee in the hallway. Dave Zilko,Garden Fresh vice chairman CEO Denise Morrison flew to Fern- at his back to aid him, he also had “Within 10 minutes of this meet- dale to visit the Garden Fresh plant. an attitude conducive to getting a ing, I knew we’d never do business Fresh would remain in Ferndale, 2012. Dunn expressed an interest in She was upfront that Campbell good deal. with these people,” Aronson said. “I kept the Aronsons from considering Garden Fresh joining Campbell’s would invest in Ferndale, retain the “Many successful entrepreneurs wouldn’t want anybody on our more offers. Fresh division, which sells natural workforce and not change one don’t have to sell their business. team treating anyone like that.” “After that, we said this is dis- and organic foods. recipe without the Aronsons’ ap- Those are usually the folks that get Aronson also said the company tracting and not good for morale,” “When you get to a certain size, proval. the biggest dollars, the ones that wanted Jack and Annette to contin- Aronson said. to continue to compete and grow “I’m really impressed with don’t have to sell,” Kothari said. ue to run Garden Fresh, but only The turning point came in 2014 you need the resources of a Fortune Denise Morrison, because she’s the “This creates such an attractive with a minority ownership in the when a Campbell Soup Co. executive 500 company,” Zilko said. first big food CEO that has stepped asset that they get really incredible company. reached out to Garden Fresh part- Zilko became convinced that out of that big food box and said, dollars. The seller can dictate the “I’d have a boss,” Aronson said. ner and Vice Chairman Dave Zilko Garden Fresh should become a part ‘We are going to do things different- terms and the buyers that are inter- “We didn’t want that.” through email. Zilko did not re- of Bolthouse Farms. He approached ly,’” said Aronson. “I’ve been in the ested in those terms can OK it.” At another meeting with a major spond until five months later. Jack and Annette about selling. business long enough to know Jack, 62, said he and Annette now food company on the East Coast, “We were not for sale,” said Zilko. Zilko had liked what he’d seen, when I’m really comfortable with have the time to start a foundation Aronson pulled out of a closing be- Zilko had flown out to Santa which was a company that had the someone.” and fund more charity work. Gar- cause the buyer wanted to move the Monica, Calif., for a separate meet- same values as Garden Fresh. Jack This is no easy accomplishment. den Fresh funded charities such as Garden Fresh plant after a year. ing and planned to stop by Bolt- listened — but took his time on the Selling to a much larger company the Boys & Girls Clubs, The Salvation “We didn’t want the company house Farms for what he thought decision. comes with its own complications, Army and Forgotten Harvest. and the jobs leaving Michigan,” said was a five-minute meet-and-greet. “It’s important to get to know the said Rajesh Kothari, managing di- “If I was 30, maybe I wouldn’t Aronson. Instead, it turned into a two-hour people you’re selling to,” Aronson rector at Cascade Partners LLC in have sold,” said Aronson, who has Situations like those, and the fact meeting with CEO and President said. “Being in a hurry doesn’t give Southfield. been in the restaurant business for that many top food companies Jeffery Dunn of Bolthouse Farms, you enough time for the proper due “Larger corporations have an over 40 years. “I wanted a little bit would not guarantee that Garden which Campbell had acquired in diligence.” identity, operating style, strategy more freedom at this point in my and way of doing business — that’s life.” how they got to be as large and as Jack and Annette don’t plan to big and, in many cases, as success- sit at home. This month, they plan ful as they are. Sometimes that can to launch Clean Planet Proteins, be harder for the company being a producer of natural, ready-to- acquired to assimilate or fit within eat protein-rich foods that can be that culture,” he said. delivered to homes or school Market-wise, Garden Fresh gymnasiums. Meat stays fresh for couldn’t have chosen a better time up to 60 days using the same to sell. M&A lawyers and advisers high-pressure processing tech- say valuations are the highest nology used to make Garden they’ve seen since before the Great Fresh salsa. Recession. “It’s exciting to be a small part Aronson knew that the value of of something that I think is going all-natural and organic companies to be very big in this country,” said are at an all-time high. Last year, Jack Aronson about the demand General Mills Inc. agreed to buy or- for organic and natural foods. ganic snack and pasta company The couple also sells a line of mi- Annie’s Inc. for $820 million. Hormel crowavable, ready-to-eat stuffed Food Corp., the maker of Spam, chicken burgers with Great Fresh agreed to buy natural-meat produc- Foods LLC, a Clinton Township comer Applegate Farm LLC this year for pany established in 2012. $775 million. “I have time now to give it the at- “If we were going to entertain tention it needs,” Aronson said. that offer to sell, there wasn’t a bet- Aronson said he has no seller’s re- ter time than right now,” said Aron- morse. son. “I will never look back and say I A closing meeting was arranged should’ve kept Garden Fresh be- OLD SCHOOL in Ferndale. On Aronson’s team was cause I could’ve gotten more,” he At Huron Capital, we’re in the trenches blocking and tackling on Zilko, their accountant, attorney said. “It was the right time, it was the and company partners. All were right price, and it was the right peo- every deal. We focus on getting the best players on the field, with connections of Jack and Annette’s ple for us.” Ⅲ the right game plan, and then simply execute. No short cuts — just that they knew they could plenty of hard work. Give us a call today. trust. “I would not have done one thing differently,” said Aronson. “If they triple or quadruple this company, I would be extremely proud.” After agreeing on a Sector Focus Platform Criteria number Aronson thought Specialty Manufacturing Buy & Build Strategies was fair to both sides, Gar- Consumer Goods & Services Revenues: Up to $200M den Fresh agreed to sell Business Services EBITDA: $5M or more for $231 million. The all- Healthcare No Minimums for Add-ons cash deal was closed June 9. “We wouldn’t have sold for $180 million or $150 million,” Aronson said. “At 500 Griswold Street - Suite 2700 | Detroit, Michigan 48226 | 313-962-5800 | www.huroncapital.com the end of the day, they promised us a lot, and LARRY PEPLIN they overdelivered on Besides salsa, Garden Fresh Gourmet also sells WE INVEST IN PEOPLE. WE BUILD LEADERS. their promises.” hummus, dips and tortilla chips. 20151012-NEWS--0041,0042,0043,0044-NAT-CCI-CD_-- 10/9/2015 11:38 AM Page 3

CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 43 SPECIAL REPORT: SECOND STAGE Oak Park company took time to vet before selling

By Rachelle Damico “A business broker will Initially, Bell and Hallman were Bell said Blackford spent a lot of Special to Crain’s Detroit Business to stay at Mopec and manage the time investigating Mopec as well. Before selling to a private equity give you realistic numbers company. They later decided to The process went more smoothly firm, Mopec Inc. co-owner Rick Bell and offer suggestions on have Blackford bring in their man- for both parties because Mopec was made sure he did his homework agers and fully acquire the compa- up-front about its finances and had first. how to get the maximum ny. no debt or other surprises for Black- “There are so many private equi- value for your business. “We would have been employees ford. ty groups out there, you have to be at Blackford,” said Bell. “I’m happy “If I did it again, I’d be more pre- careful that they’re well-funded Everyone thinks their the way it worked out, instead of pared for an emotional roller coast- and are who they say they are,” said business is worth more having to work for somebody else er,” said Bell. Bell. than it actually is.” when you worked for yourself all “Your company is your creation. Mopec is an Oak Park-based these years.” It’s very difficult to let go.” Ⅲ maker of pathology and mortuary Rick Bell,co-owner,Mopec Inc. equipment. The company provides items such as body trays, autopsy counting on us all the time to per- Michigan-based company that saws and bone-cutting instru- form at a high level.” wouldn’t move the plant. ments. Bell and fellow co-owner Bell also said managing many He also investigated how private George Hallman founded it in employees was difficult, especially equity firms treated employees by Local sporting 1992. when it came to demoting or fir- calling and interviewing companies As the company grew, it became ing. bought by private equity groups. GROWING: goods company harder to manage and support. “I didn’t want to be the person After about a year, they found Bell and Hallman began thinking that affects somebody’s life like Grand Rapids-based Blackford Capi- with $250,000 in about selling, but they didn’t want that,” said Bell. “In order to run a tal LLC. Bell and Hallman chose the to do it carelessly. larger corporation, you have to be firm because of its Michigan Pros- A/R fi nancing “The business grew beyond our able to make tough decisions and perity Fund, which promotes its capabilities, and we weren’t willing not let your personal emotions stop aims to protect and create Michigan to grow and invest in new technolo- you.” jobs. gies,” said Bell. Through the help of Mopec’s “Blackford seemed to be com- “It was time to pass the company CPA, Bell and Hallman hired Nu- mitted to growing the company,” Helping manufacturers, service providers, on to somebody who had grander Vescor Group LLC, a Grand Rapids- said Bell. “They had some experi- visions and can run a larger corpo- based brokerage firm, to help vet ence in the medical industry and government contractors and more with ration.” buyers. had a large portfolio.” At the time of the sale, Mopec “A business broker will give you In 2013, Mopec sold to Blackford. business cash fl ow solutions. had about 80 employees and a net- realistic numbers and offer sugges- The sale price wasn’t disclosed but work of over 40 different independ- tions on how to get the maximum was under $20 million. It took about › ent representatives to whom the value for your business,” said Bell. six months of negotiations to final- A/R Financing company delivered equipment and “Everyone thinks their business is ize the all-cash deal. › Lines of Credit supplies. worth more than it actually is.” “I strongly recommend having “It was a tremendous responsi- Although Mopec was getting a lot very clear, concise contracts with www.hitachibusinessfi nance.com bility,” said Bell. “The reps were of offers, Bell wanted to find a people you’re selling to,” said Bell. (248) 658-1100

Bonding class helps firms grow

By Marti Benedetti to meet contract specifications. [email protected] In the bond are three parties: the Tiffany Hart knew from the start project investors or owners, the con- that getting her Detroit-based road tractor hired to do the work and the construction company bonded was surety company that backs the bond. HEALTH CARE important to winning more busi- The bond functions like an insur- ness, but it also was difficult. ance policy. When a contractor fails BENEFIT UPDATE “It is a lot like applying for a line on a bonded project, the surety com- of credit,” said Hart, CEO and presi- pany fulfills the contract for the proj- dent of Hart & Associates Construc- ect owner or, in a government proj- tion LLC. ect, the taxpayers. Once bonded, a She didn’t know where to start company can bid on construction Presented by: until four years ago, when she heard projects from MDOT and others. about a U.S. Department of Trans- The free education program is portation program. The program not registering its fourth class of local only clearly explained how to get business owners. Registration runs bonded but also taught small com- until Oct. 20 at http://tinyurl.com/ .QRZLQJWKHQXPEHUV panies how to gain access to capital. BEPMI2015. So far, 10 companies A year later, in 2012, USDOT have registered. The program is partnered with the Michigan Depart- funded by USDOT in partnership How access to pricing data can help FREE ment of Transportation to offer the with MDOT, the Surety & Fidelity As- Bonding Education Program at the sociation of America and the South- save employers money MDOT office in Detroit. Hart was west Detroit Business Association. Webinar one of its first students. The class meets four times be- As costs rise, employers have a greater demand Her company’s annual revenue tween Oct. 21 and Dec. 2. for solutions. Consumers are taking more went from about $200,000 that year A class is designed for small and responsibility for the cost of their health care. Wednesday, Oct. 14 to $269,000 in 2013 to projected sales disadvantaged businesses and of- It’s becoming more critical for employers to Noon-1 p.m. this year of $380,000 to $400,000. fers them the tools and resources to have access to the resources and tools to help What changed? Hart & Associates compete for multimillion-dollar became bonded. federal and municipal contracts. their employees make more informed health Bonding is used by investors in To qualify, a business needs to be care decisions. construction projects to protect at least two years old, have annual To register go to them from events such as a con- revenue of $250,000 or more, good Powered by crainsdetroit.com/webinars tractor’s failure to complete a proj- credit and prior transportation-in- ect because of insolvency or failure frastructure work experience. Ⅲ 20151012-NEWS--0041,0042,0043,0044-NAT-CCI-CD_-- 10/9/2015 11:31 AM Page 4

44 CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 SPECIAL REPORT: SECOND STAGE Advice to would-be sellers: Do homework to make best deal

Peter Roth is a partner at Grand upstanding partners, to some that What are some tactics to get better Rapids-based law firm Varnum LLP are less than that. Tap your profes- terms? who works out of sional advisers for some informa- Run a competitive process. If the firm’s Novi tion on the reputation of private you’re dealing with just one group, and Detroit of- equity funds. Be direct with the pri- they’re likely not going to give you fices. As a merger vate equity fund and ask to talk to the best terms. I have a client that and acquisitions people they’ve partnered with. was approached with only one attorney of over Good quality funds will give you a offer. We decided to hire an invest- 16 years, he has list of 10 or 20 CEOs or business ment banker and to get other peo- facilitated many owners that they’ve done deals ple at the table auctioning the busi- private equity with. You can call the last five peo- ness. That often maximizes value. transactions. Roth ple that have sold to a particular He offered a private equity fund to see how their What are some mistakes a busi- few words of advice to would-be employees were treated. If a fund ness owner should avoid? sellers in this interview with writer has a hard time giving you good A lot of people hear others have Rachelle Damico. references, that’s going to tell you a sold their business for a large multi- lot about who they are. ple, so they think their business is What are the first steps business For strategic buyers, it’s better to worth the same amount. Get a real- owners should take to prepare selling get a sense of how (those buyers) istic value of your business. Figure their business? run their current business and out how much at the end of the day Do a good internal scrubbing of what their reputation is in the in- you will net out of it, taking into ac- YOU CAN TELL FROM OUR BUILDING the business. Find out where the dustry. count taxes and paying off debt. problems and skeletons are in the Then, figure out what amount WE MEAN BUSINESS. closet. Those things will come out in How can you guarantee the busi- you’re going to get and if you can live a sale process, and if you identify ness and product will retain its origi- your lifestyle on that. Understand nal character? The GVSU Seidman College of Business full- or them, many times they can be fixed what your financial outlook is going and they don’t become issues. If You can’t, but you can do some to be after a deal. Talk to good ac- part-time M.B.A. program will get you to the top. they aren’t completely fixable, you things to increase the chances. Vet countants and financial planners on West Michigan’s premier business school now has can identify them with a potential the private equity fund or buyer to how that’s going to work for your life. an equally premier building, enhancing downtown solution to a buyer early in the com- see if it has a history of retaining the If you’re going to partner with petitive process. That way, you don’t culture or radically changing it. It’s private equity and you were an en- Grand Rapids’ growing skyline and economic climate. end up reducing the value you get especially important if you’re an trepreneur, now you’re going to be for the business. If you’re unin- entrepreneur or family-owned working for a boss. That’s a big life formed and dive into the process, business to talk to similar types of change; be sure you’re ready for and the buyer finds the problem sellers who have sold to a particular that. I’ve seen entrepreneurs who halfway through, you’re going to fund and see how respectful or dis- partner with private equity, or take a whack on your purchase respectful they were of the charac- maintain some ownership in a mi- price and get less value for your ter and tradition. nority stake, and really have a hard business. It’s important for sellers to realize time with having to report to some- it will be a change. It won’t be their body who’s in charge. How should a business owner vet business anymore. Lots of funds Also, you’ve got to treat the busi- potential private equity firms and and buyers are very respectful and ness like it’s your own until the very other buyers to make sure they treat continue on the culture, but it’s day that you close. Sometimes, their company and employees well? going to change in some respect deals fall apart. Some people check There’s a wide range of private and you can’t guarantee it in a legal out and think they sold the busi- CONGRATULATIONS, equity firms, from really great and document. ness. Keep your eye on the ball. Ⅲ 40 UNDER 40. Founded in 1976, we remain committed to customized investment advice for institutions and families. Just like you, we look forward BOOK OF LISTS to a bright future.

Member FINRA/SIPC The Countdown to the Launch Investment Advisors t (866) 644-2701 t www.GJSCO.com of Crain’s 2016 Book of Lists is On! Maximize your company’s advertising message in this GET CONNECTED “SIX DEGREES” trusted business tool — referred to all year long. DETROIT STYLE Contact Marla Wise for sponsorship information: (313) 446-6032, [email protected] Try it now at crainsdetroit.com/mostconnected ISSUE DATE: Dec. 28, 2015 | CLOSE DATE: Oct. 30, 2015 20151012-NEWS--0045-NAT-CCI-CD_-- 10/8/2015 5:20 PM Page 1

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H&M Hennes & Mauritz AB, Stock- Manufacturing space will be shared Batavia, N.Y. Tony Mattiacio is the master franchise rights to operate holm, Sweden, has opened an with an adjacent Ascent facility, franchise license owner. Website: the Domino’s brand in Italy. The DEALS & H & M store at Laurel Park Place, Global Tooling Systems, for a ziebart.com. franchise led by Alessandro 37700 Six Mile Road, Livonia. Web- combined 200,000 square feet. A Lazzaroni, plans to open three stores DETAILS site: hm.com. 40,000-square-foot high bay space IRON Laboratories LLC, Walled in Milan before year’s end. Websites: will be dedicated to support the Lake, a medical cannabis testing lab, dominositalia.it, dominos.com. Ascent Integration-US Operations, manufacture and testing of large has expanded operations with a new ACQUISITIONS & Macomb Township, part of AIP automated assembly lines. Website: testing facility opening in Eugene, STARTUPS MERGERS Aerospace Holdings LLC, Santa Ana, aipaerospace.com. Ore. Website: ironlaboratories.com. Mabel Gray, a restaurant estab- Rehmann, Troy, has merged with Calif., has added 42,000 square feet lished by celebrity chef James Rigato Roegiers Goldin Chappel Nall & Associ- of office and manufacturing space, Ziebart International Corp., Troy, a Domino’s Pizza Inc., Ann Arbor, has and business partner Ed Mamou, ates PA, Stuart, Fla. RGCN will oper- dedicated to designing and provider of vehicle appearance and opened its first store in Milan, Italy. opened at 23825 John R Road, Hazel ate as Rehmann effective Nov. 1, managing the production of turnkey protection services, announced the ePizza SpA, doing business as Park. Telephone: (248) 398-4300. and all 20 RGCN associates will join assembly lines for aerostructures. opening of its newest location in Domino’s Pizza Italia, holds the Website: mabelgraykitchen.com. Rehmann. Websites: rehmann.com, rgcncpa.com. CONTRACTS Turn your Altair Engineering Inc., Troy, has Let’s Talk Trash trash to cash reached an agreement with Airbus Group SE that provides designers If you pay to have recyclable waste hauled away, such as plastic, paper, or metal and engineers of Airbus, Airbus Heli- you are missing a great opportunity to increase your net income. copters and Airbus Defence & Space divisions, as well as any other company to which the Airbus Group holds more than 50 percent of vot- ing rights, access to Altair’s entire An advantage of Advia paying the closing costs of your Business Loan: software portfolio. Website: Putting more capital back into your business. altair.com.

Plumbing Professors, Canton Township, a plumbing, sewer re- pair and epoxy pipe lining Advia is paying the closing costs on your company, was awarded a contract Business Real Estate and Equipment Loans. by Althoff Industries Inc., Crystal • Waived closing costs up to $10,000* Lake, Ill. The contract included Schedule your FREE Waste Audit To See How Much You Can Save • New purchase & reﬁnanced loans from other ﬁnancial institutions video inspection, high pressure • Low fixed rates with flexible terms to best fit you & your business Servicing the Entire State of Michigan water jet of the sanitary sewer line We will pay your closing costs for you! and installation of 60 feet of epoxy Email [email protected] Learn more at www.adviacu.org/businessloan/ pipe lining at the University of Call Robert, Rick or Stu (248) 668-0800 or call us at (844.ADVIA.CU). Chicago’s Swift Hall. Website: *Offer valid July 1, 2015 through December 31, 2015. Includes payment of 1% up to $10,000 in qualified closing costs on business loans; excluded refinancing of business loans currently held with Advia Credit Union. Minimum $100,000 borrowing requirement for offer eligibility and prepayment penalty in effect for promotional loans plumbingprofessors.com. RECYCLING SOLUTIONS FOR BUSINESS SINCE 1917 paid off prior to three years to another financial institution following date of loan closing. All loans subject to approval. Advia CU is an equal opportunity lender.

Trinity Health, Livonia, announced that Saint Francis Care, Hartford, Conn., and Saint Mary’s LENDING | TREASURY MANAGEMENT | BANKING | BUSINESS SERVICES Health System, Waterbury, Conn., have signed agreements to be members of Trinity Health’s emerging New England region. Voted “Best Bank” 2011 - 2015* Saint Francis Hospital and Med- Macomb Daily ical Center, Mount Sinai Rehabili- tation Hospital and other Saint Francis entities will provide care under the umbrella of the new Trinity Health region in New Eng- land, as will the Sisters of Provi- dence Health System, Springfield, Best bank...5 years running. Mass., and its subsidiaries. Web- sites: stfranciscare.com, stmh.org, trinity-health.org. Best-in-class products. Art Van Furniture Inc., Warren, has signed a franchising agreement with Ingrassia Interior Elements, Rockford, Ill. The store will officially close and reopen Nov. 7 as Art Van Best of all… Furniture of Rockford. Website: artvan.com. local decision making. EXPANSIONS Potbelly Sandwich Works LLC, Chicago, Ill., has opened a Potbelly Sandwich Shop at 30207 Mound Road, Warren. Telephone: (586) 353-0323. Website: potbelly.com. As a Michigan-based bank, we’ve been getting to work helping businesses since 1917. By providing area expertise and loan decisions that come out of our local office and not out-of-state, our services are enhanced to optimize cash flow and finance Deals & Details guidelines. growth to help businesses move forward, even faster. And with best-in-class banking resources like Positive Pay, Business Email [email protected]. Express Deposit and SBA loans, you’re always banking big…even when you’re banking local. Use any Deals & Details item as a model for your release, and look for Learn more about how big doesn’t always mean best. the appropriate category. Without Give us a call today. complete information, your item www.thefsb.com/business | 866-372-1275 will not run. Photos are welcome, but we cannot guarantee they will *Voted “Best Bank” by Macomb Daily be used. (2011: 3rd; 2012: 1st; 2013: 1st; 2014: 1st; 2015: 2nd) 20151012-NEWS--0046-NAT-CCI-CD_-- 10/8/2015 5:15 PM Page 1

46 CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015

FRIDAY UPCOMING EVENTS 2050; email: [email protected]; OCT.16 website: urbanei.org. CALENDAR India-U.S. Partnership: New Vision & Shock the World Urban Dynamism. 11:30 a.m.-1:30 p.m. De- Entrepreneurship Symposium. 8:30 Growing the Manufacturing troit Economic Club. Arun Kumar a.m.-4:30 p.m. Oct. 23. Urban Pipeline. 7:30 a.m.-2:30 p.m. Oct. 20. THURSDAY president of Olympia Development of Singh, Indian ambassador to the U.S., Entrepreneurship Initiative. Second Automation Alley. Featuring a OCT. 15 Michigan, will be moderated by talks about new opportunities in in- annual event brings together keynote presentation by Karen Chaldean American Chamber of WJBK-TV2 News Legal Analyst Char- frastructure, renewable energy and business innovators, academics, McPhee, senior education policy Commerce 10th Annual Business Lun- lie Langton. Shenandoah Country automobile sectors for the two coun- students and community and adviser for Gov. Rick Snyder, the cheon. 11 a.m.-1 p.m. Chaldean Club, West Bloomfield. $50 for tries to collaborate. The Townsend government leaders to inspire for- summit is intended to facilitate the American Chamber of Commerce. Chaldean Chamber members, $60 Hotel, Birmingham. $45 DEC mem- profit business ideas to urban formation of partnerships between Featured guests Tom Wilson, presi- for nonmembers. Contact: Lisa bers, $55 guests of DEC members, $75 challenges. College for Creative the manufacturing business dent and CEO of Olympia Entertain- Kalou, (248) 996-8340; email: nonmembers. Phone: (313) 963-8547; Studies, Detroit. $50; $75 after Oct. community and area K-12 schools. ment, and Steve Marquardt, vice [email protected]. email: [email protected]. 16. Contact: David Tarver, (313) 457- TechShop Detroit, Allen Park. $40 members; $55 nonmembers. Contact: Karol Friedman, (248) 457-3232; email: [email protected].

GHDForensicsLLC goREDTALKS. 6:30-9:00 p.m. Oct. 20. American Heart Association, AHA PULSE Young Professionals Experience Expertise. Board. Event includes conversa- tions about the Heart of Detroit. Speakers include Ed Welburn, head of global design for GM; Kirk Mayes, • Accounting work as it pertains to CEO of Forgotten Harvest; Michelle litigation matters Lutz, Recovery Parks Farm manager; • Representing plantiffs and defendents in Jason Hall, founder of Slow Roll; and civil and criminal cases Bob Frank, chief medical officer for Meridian Health. Gem Theater, De- troit. $50. Contact: Mindy Lopus, A wholly owned David J. Hammel, CPA, CFE, CFF subsidiary of: (248) 936-5825; email: President [email protected] For information regarding the services provided by GHD Forensics, LLC, contact Association for Women in +,( David J. Hammel, CPA, CFE, CFF at Communications fall meeting. 5:30 -8 '4%7 %(:-7367 [email protected]. p.m. Oct. 22. AWC, Detroit Chapter. “Communication Is Ageless,” a panel discussion with local young 21420 Greater Mack Avenue | St. Clair Shores, MI 48080 communicators who will offer 586-772-8100 | www.ghdcpa.com insights on innovation, future trends, and using the latest social media to communicate to their audiences. Participants include Tatiana Grant, president and CEO of Infused PR & Events; Anna Leigh Clark, Niche manufacturing in Detroit? author and Detroit Free Press ALL SEWN UP. contributor; and Oona Goodin- We’ve got your accounting systems Smith, an Oakland University senior who will share her experience as a correspondent for USA Today during her junior year. Motor City Java House, Detroit. $25 members, $35 nonmembers, $15 students. Contact: (248) 643-6590; email: Our client, Detroit Denim, is a high-quality [email protected]; denim manufacturer poised to scale the website: womcomdetroit.org. brand nationally. Emerging startups like SUMIT_2015. 9 a.m.-4:30 p.m. Oct. this require accounting advice that can see 22.University of Michigan. Annual symposium to raise awareness and the company through its next stage of educate the community on cybersecurity. Nationally recognized growth. We work with founders to ensure experts discuss the latest the business' tax and accounting systems cybersecurity trends and threats. Rackham Auditorium, University of are right, right from the start. Because Michigan, Ann Arbor. Free, but when it comes to choosing an accountant, registration is required. Contact: Joel Iverson, (734) 764-8187; email: it should be a custom fit. [email protected]; website: safecomputing.umich.edu /events/sumit15/

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Calendar guidelines. Visit Contact for Inquiries crainsdetroit.com and click “Events” Steve Wisinski, CPA, CFE, CFFA near the top of the home page. Then, click “Submit Your Events” Partner from the drop-down menu that will appear. Fill out the submission form, Eric Yelsma, Founder Steve Wisinski, Partner www.ShindelRock.com | 248.855.8833 then click “Submit event” at the Detroit Denim ShindelRock 28100 Cabot Drive Ste. 102 | Novi, MI 48377 bottom of the page. More Calendar items can be found at crainsdetroit.com/events. 20151012-NEWS--0047-NAT-CCI-CD_-- 10/8/2015 5:17 PM Page 1

CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 47

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Today’s Workplace …Tomorrow’s Profit. 7:30 a.m.-noon, Oct. 23. Waterford, Orion Area, Auburn Hills and Clarkston Area chambers of commerce. Secrest Wardle Executive Partner Caroline A. Grech-Clapper presents “Know Your Rights- Employer and Employee.” Other speakers include Oakland County Executive L. Brooks Patterson; Sue Novak, managing partner, Plante Moran ; and James Goebel, founding partner, Menlo Innovations. Oakland Schools, Waterford. $40 members, $55 nonmembers, $20 students, $225 table of eight. Website: waterfordchamber.org.

2015 North American International Cyber Summit. Oct. 26. Engineering Society of Detroit. Hosted by Gov. Rick Snyder, the event brings together experts to address cybersecurity issues impacting business, education, information technology, economic development, law enforcement and personal use. Cobo Center, Detroit. $79; $59 for students or members of Information Systems Security Association and other groups. (See list online.) Contact: Leslie Smith, (248) 353- 0735, ext. 152; e-mail: [email protected].

Fall 2015 Leadership Luncheon.11:30 a.m.-2 p.m. Oct. 28. Greater West Bloomfield Chamber of Commerce. Jacques Panis, president of Shinola, is guest speaker. WDIV-Channel 4 an- chor Devin Scillian will be the master of ceremonies. Andiamo, Bloomfield Hills. $45 West Bloomfield Chamber members, $55 nonmembers. Phone: (248) 626-3636; website: westbloomfieldchamber.com.

Crain’s2015 Health Care Leadership Summit Join Crain’s for this annual event that provides opportunities to learn about the ever-changing landscape of the health care industry, plus make the professional contacts to help navigate these changes. Held at the Marriott Renaissance Center from 7:30 a.m.-1 p.m. Oct. $1 Billion 28, the Health Care Leadership Summit includes keynote speaker Leah Binder, CEO of The Leapfrog Group; roundtable discussions; and the Health Care Heroes awards. Can Michigan provide consumers and employers the data needed to make smart decisions in health care? A growing number of Michigan’s health insurers, hospitals and consulting firms are already doing it. Also, network with local business leaders and health care providers and discuss the latest in innovative health care strategies for 2015 and beyond. Individual tickets are $125; reserved table of 10 is $1,300. Prereg- istration closes Oct. 23 at 9 a.m. If available, walk-in registration will be $140 per person. For more information, contact Kacey Anderson, (313) 446-0300, or email [email protected]. 20151012-NEWS--0048-NAT-CCI-CD_-- 10/9/2015 12:07 PM Page 1

ADVERTISING SECTION PEOPLE: SPOTLIGHT Crain’s has moved its complete list of appointments and promotions to www.crainsdetroit.com/peopleonthemove. Here are some of last week’s Brief online listings for management-level positions are executive appointments reported by Crain’s. available at no cost, at editor’s discretion. Bridgewater Interiors Guaranteed print placement in this promotional feature can names Ron Hall Jr.CEO be purchased at the website above. Bridgewater Interiors LLC has appointed Ron Hall Jr. president and CEO of the joint venture between John- son Controls Inc. and Ep- LAW AUTOMOTIVE silon Tech- nologies LLC. He succeeds Kathleen Johnson his father, Chief Information Officer Ron Hall Sr. and Vice President, The elder Information Technology Hall, 72, be- Hall (IT) comes Federal-Mogul Motorparts chairman of the Detroit-based company he founded in 1998. Federal-Mogul Motorparts, a division of Most recently, the younger Federal-Mogul Holdings Corporation (NASDAQ: Hall, 46, was the auto supplier’s FDML), today announced the appointment of vice president and general Kathleen (Kathy) Johnson to Chief Information counsel. Before joining Bridge- Robert Kaatz and Paul Kittinger Officer and Vice President, Information water in 2007, he was an in- Partners & Shareholders Technology (IT). house attorney and program Cardelli Lanfear, P.C., Johnson has been with Federal-Mogul for over manager for JCI. He also was an 26 years. She has previously held various Cardelli Lanfear, P.C., proudly announces that Robert A. Kaatz and Paul M. Kittinger associate attorney for the De- positions within IT, including Vice President, IT have become partners and shareholders in the firm. troit-based law firm Dykema Services; Director, Aftermarket Business Gossett PLLC. Robert Kaatz graduated with high honors from Michigan State University with a Relationship and Application Delivery; and Ron Hall Jr. earned a bache- Bachelor of Arts in Economics and graduated magna cum laude from Wayne State others. lor’s degree from the U.S. Military University in 2002. Prior to law school, he was an active duty tank officer in the United Academy at West Point and a law States Army for four years. While in law school, Mr. Kaatz worked full time as a court degree from the University of clerk at Oakland County Circuit Court. Mr. Kaatz has successfully litigated a wide Michigan. He also served in the variety of litigation, including the Michigan No Fault Act, commercial litigation, and INSURANCE Persian Gulf as an officer in the product liability. He is admitted to practice law in the State of Michigan, the U.S. U.S. Army. Eastern District of Michigan, the U.S. Western District of Michigan, and the U.S. Court Additionally, Bridgewater ap- of Appeals for the Sixth Circuit, and he has been admitted pro hac vice in several Bob Crisan pointed Cassandra Alston-Childs, states. Mr. Kaatz can be reached at 248-544-1145 x2072 or via email at Executive Director of East 50, as its COO. She replaces [email protected]. Sales and Client Services, Priority Health Barima Opong-Owusu, who is Paul Kittinger received his Juris Doctor from Wayne State University Law School in retiring at the end of the year. Bob Crisan will focus on Alston-Childs has served in 2008 where he was the Symposium Editor on The Journal of Law and Society and increasing awareness of served on the Moot Court. He was awarded the David Adamany Endowed various management roles at Priority Health’s offerings for JCI since joining the Milwau- Constitutional Law Scholar Award and was a Bronze Key Award recipient for academic consumers in Southeastern Michigan and excellence. He graduated with a Bachelor of Arts (Philosophy/Sociology) degree from kee-based company in 2002, working directly with mid- to large-employer most recently as vice president the University of Michigan (Ann Arbor) in 2008, where he was selected as the Waldron groups. Crisan previously was the vice Scholar in 2005 and received University Honors for five consecutive semesters. Mr. of strategy, communications, president of growth strategy for Kapnick government and environmental Kittinger is admitted to practice in Michigan and Illinois, along with the U.S. District Insurance Group. Courts for the Eastern and Western Districts of Michigan. Mr. Kittinger joined the firm in affairs in JCI’s power solutions 2009. Mr. Kittinger specializes in commercial litigation, construction law, product business unit. liability and personal injury cases. He has obtained summary disposition/judgment and Bridgewater is a minority- voluntary dismissals without payment in scores of cases. He has tried one jury trial to owned enterprise that manu- verdict. Mr. Kittinger can be reached at 248-544-1145 x2051 or via email at NONPROFIT factures automotive seating [email protected]. components. David Kurzmann Executive Director, Tom Oehmler named Jewish Community president,Comerica Trust Relations Council of Metropolitan Detroit Comerica Bank has named Tom Oehmler president of Comer- David Kurzmann will lead ica Trust. He succeeds Marc JCRC's community Scheuer, who retired after more relations, Israel advocacy, media relations and than 36 years at the bank. fundraising activities. He succeeds Robert Oehmler, who will be based Cohen, who is retiring after serving as the in Detroit, will oversee all as- Our proprietary data-driven process connects job seekers agency's executive director for the past ten pects of the trust department, to employers based not only on job requirements, but on years. Asst. Regional Dir. - Anti-Defamation including regulatory compli- the candidate’s skills and interests. League (ADL) Chicago Office. Coordinated ance and product development. ADL’s “Confronting Anti-Semitism” & “Words The veteran of more than 20 to Action” programs, campus outreach and years in wealth management Post a job for only $39 — includes a match guarantee. law enforcement initiatives.Program Assistant previously was personal trust - Illinois Holocaust Center. manager for Columbus, Ohio- based Huntington National Bank, Job seekers never pay to use the overseeing a staff of 135. platform. Find out which employers Oehmler has a master’s de- are a match for you. gree in theology from Pontifical College Josephinum in Columbus. 20151012-NEWS--0049-NAT-CCI-CD_-- 10/9/2015 4:04 PM Page 1

CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 49 Crain’ssummit to address cost,quality of health care

By Daniel Duggan leader for Mercer’s Detroit-area op- ated by Rick Murdock, executive di- [email protected] erations. rector of the Michigan Association of The end goal is simple: Providing Another panel will show how Health Plans. On that panel will be a means for consumers to compare employers, hospitals and insurance Scott Eathorne, CEO of Detroit- the true price and quality of their companies view transparency. Chris based Together Health Network, and health care services. Duke, director of the center for con- David Mazurkiewicz, CFO of Flint- But making that happen is a sumer choice and health care at based McLaren Health Care. whole other story. Ann Arbor-based Altarum Institute, Keynote speaker for the event will Experts will address that overall Jessica Gubing: Chris Duke: Altarum David Mazurkiewicz: Leah Binder: Will will moderate that discussion. be Leah Binder, CEO of The Leapfrog challenge — transparency in the cost Panelist discussing exec will moderate Will offer insurer’s deliver summit’s Also speaking will be Brian Connel- Group, a national nonprofit based in and quality of health care — during transparency. discussion. perspective. keynote address. ly, the former CEO of Oakwood Washington, D.C., representing em- the Crain’s Health Care Summit on Healthcare (which is now part of ployers and other purchasers of Oct. 28 from 7:30 a.m. to 1 p.m. ca Gubing, director of North Ameri- companies of various sizes, talking Beaumont Health). Additionally: Jay health care calling for improved The event will have a portion of can health, welfare and wellness about how they view the topic of Levine, chief medical officer for safety and quality in hospitals. the day focused on the transparen- programs for Detroit-based General transparency. Grand Rapids-based Priority Health. To register, go to www.crains cy topic from the perspective of em- Motors Co. Moderator of the panel will be A session focused on the chal- detroit.com/events. Ⅲ ployers. She will be on a panel featuring Jerry Konal, principal and employee lenges facing insurance companies Daniel Duggan: (313) 446-0414 Among the speakers will be Jessi- human resources executives from health and benefits office business and health providers will be moder- Twitter: @danielbduggan

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50 CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 Law firm mergers more common practice this year

By Chad Halcom Long PC, both said some mergers man Weil reports IP law has been an [email protected] “Many areas of law meet can be born out of a desire to grow acquisition focus, but Woldow said The metro Detroit legal business with waning and waxing with clients into new markets or that would have to be mostly out- is heating up, at least when it comes states, while some are to add servic- side of IP litigation, which has abat- to mergers. demand. ” es or cultivate new practices in high- ed in federal courts under recent Six acquisition deals involving Justin Klimko, president-CEO, Butzel Long PC demand legal specialties. changes to the law. Southeast Michigan law firms have Four of the six Detroit deals this Geographic expansion also has its closed so far in 2015, affecting 167 year were outbound transactions place for law firms, she said, but lawyers, compared with just one where locally based firms expand- should be done selectively. deal affecting six attorneys in all of Dinsmore & Shohl LLP acquired Troy- with 240 attorneys across 20 cities. ed outside the state. Dykema Gossett “Geographic span is sometimes 2014, according to transaction data based Gifford, Krass, Sprinkle, Ander- But intellectual property is a rapidly PLLC added 118 attorneys of San more important in the minds of reported to Crain’s. son & Citkowski PC, which employs emerging specialty for the firm, Antonio-based Cox Smith Matthews managing partners than it actually is The deals partly reflect a national 17 attorneys, last month. along with public finance and labor May 1. Honigman Miller Schwartz and for revenue,” she said. trend. Legal management consult- “We already have a national prac- and employment law. Cohn LLP added 14 attorneys from “It will matter, if you have clients ing firm Altman Weil Inc. of Pennsyl- tice in the IP space, and adding The firm also had some IP clients Schopf & Weiss LLP, and Miller Can- that very much need you in particu- vania reports more than 70 M&A more in Detroit and Ann Arbor … in common with Gifford Krass and field Paddock and Stone PLC added 10 lar places, like battling litigation in transactions nationwide affecting gives us some added depth,” said handled several matters alongside attorneys of the former Kubasiak Fyl- certain jurisdictions where they more than 5,000 lawyers this year, George Vincent, managing partner the firm prior to the acquisition. stra, Thorpe & Rotunno PC, both in have specific operations. But that’s compared with 63 deals involving at Dinsmore in Cincinnati, who Adding a client, or expanding Chicago. And Clark Hill PLC added about it.” fewer than 2,000 lawyers the first grew up in Dearborn. “We’re fond of service for one, is an increasingly the three attorneys of Rayndon Law Klimko said Butzel added five at- three quarters of 2014 (a January the folks we now have there, and I common motive for acquisitions, Group in Arizona. torneys from the former Stevenson merger of Dentons in New York and don’t know that we’re targeting that along with increased competition Dickinson Wright PLLC picked up Keppelman Associates in Ann Arbor Dacheng Law Offices in China is 10 region versus anywhere else to grow. and flat or falling revenue, said a total of 15 attorneys in 2015 from to expand its pension and employee times larger than any other U.S. But it (Detroit) is a great market, and Pamela Woldow, principal and gen- the former Lionel Sawyer & Collins in benefits law practice. deal, skewing the 2015 head count). a heck of a great city.” eral counsel at Edge International Inc., Las Vegas and Roylance Abrams Berdo “Many areas of law meet with Still, at the current pace, 2015 After adding Gifford Krass, an in- a global consultant on law firm busi- & Goodman LLP in Washington, D.C., waning and waxing demand. IP is a could overtake 2013 as the busiest tellectual property boutique, Dins- ness development and mergers and both of which were winding down very important area, and it’s going to year of legal M&A deals since Alt- more now claims more than 75 IP affiliation agreements. operations. Neither of those deals is continue to grow, while 20 or 25 man Weil began compiling such lawyers out of more than 570 attor- “A (large number) of top firms are counted in Altman Weil’s acquisition years ago there was a bigger focus data nine years ago. And Detroit has neys nationwide. dealing with declining revenue and data. on environmental law than more re- caught some outside attention as Vincent, who attended both the have to do something. A common Hot specialty practices for law cently,” he said. “Finding those two of the largest national firms University of Michigan and its law reaction is to join up with another firms to add via acquisition lately are growth practices is a degree of sci- opened their first local offices — school and holds season tickets for firm,” she said. cybersecurity and privacy litigation, ence and art.”Ⅲ Jones Day moved into 150 W. Jeffer- Wolverines football, said litigation is Woldow and Justin Klimko, presi- class-action defense and federal Chad Halcom: (313) 446-6796 son in July and Cincinnati-based the firm’s largest practice group, dent-CEO of Detroit-based Butzel anti-corruption law, she said. Alt- Twitter: @chadhalcom

Frisch predicted that the men’s “For Detroit to not The LPGA has the community. She had an extreme GOLF tour will return within five to 10 found success in passion for golf. She was ecstatic FROM PAGE 3 years because Michigan companies have (a PGA Tour Michigan: The $2 about the opportunity to bring the are increasingly willing to spend stop) is still million Meijer LPGA here to create a community golf course and tables in the club- marketing dollars on events such as LPGA Classic event that’s an inspiration to girls house. golf tournaments. shocking to me.” played at Blythe- and women.” “How many corporate tents can “I think there’s going to be money Kevin Frisch,CEO, field Country Club Crain said she didn’t hesitate to you sell? That’s what really drives to bring back a tournament,” Frisch Fusion Media Strategies near Grand take on the role. the entire event,” Richards said. said. “People are looking to getting Rapids began a “It was a very easy thing for me Hospitality packages for the 2008 back into spending money on golf.” sponsorship of the Buick Open, in year ago, and the LPGA’s develop- because I’ve been involved with golf PGA Championship at Oakland If and when the PGA Tour re- 2010, signed a six-year deal to be the mental tour, the Symetra Tour, had my whole life,” she said. “It’s nice to Hills began at $37,500 for a 10-per- turns, the Detroit area is the natural title sponsor of the one of the four three Michigan stops in 2015. bring something like this to the son table and increased to $500,000 landing spot, he said. World Golf Championship events, Additionally, the Marathon Clas- community. Our role is basically for larger, more sophisticated offer- “For Detroit to not have (a PGA known as the WGC-Cadillac Cham- sic (formerly played under different opening doors and raising sponsor- ings. Tour stop) is still shocking to me. pionship, beginning in 2011. titles using actor Jamie Farr’s name) ship dollars and being where we’re More recently, the 75-person The quality of golf courses in De- Economic effects has been held near Toledo since needed.” suites along the 12th green at East troit is certainly capable of hosting a 1984. In most cases, a tournament or- Lake Golf Club in Atlanta were selling PGA Tour event or a major golf Richards cautioned that the new “This is the heartland for golf,” ganizer has to have a title sponsor for $95,000 for the Tour Champi- championship,” Frisch said. LPGA event isn’t likely to stimulate a LPGA Commissioner Michael ready to write checks before a pro onship last month. A message seeking comment wave of new golfers in the region, Whan said. tour will agree to an event, but in Richards estimated that a PGA about the men’s tour’s potential in- but instead should have a different The LPGA’s new Ann Arbor tour- Karbo’s case the LPGA itself had a Tour event is eight to 10 times the terest in returning to Michigan was positive effect: Creating an uptick in nament was born out of an idea sponsor already waiting for an op- cost of an LPGA Tour stop, but left for Ty Votaw, the PGA Tour’s ex- people traveling to Michigan to play Karbo had two years ago. He took portunity: Volvik, which wants to Michigan’s improving economy ecutive vice president and chief golf. the notion of organizing an event to boost its share of the U.S. golf ball means more companies are gradu- global communications officer. “We’re a golf tourism state,” he a friend at the LPGA and talks about market and is willing to spend on ally becoming interested again in Detroit certainly has potential said. how to make it happen com- marketing to do so. such spending. PGA Tour event sponsors: Quicken Michigan ranks fourth nationally menced, he said. The company inked a three-year “I think we’re in a better climate Loans Inc. Chairman Dan Gilbert has in total number of links, with more Getting local financial backing deal to become the inaugural title now, but we’re coming back a lot invested in golf, such as being the than 865 golf courses and 86 coun- and connections was a first step, so sponsor of the LPGA Volvik Cham- slower than we crashed,” he said. title sponsor of the annual Quicken try clubs that fuel a $4.2 billion Karbo turned to KC Crain, executive pionship. The 72-hole tourney will “In the old days, we sold out corpo- Loans National tournament in Vir- statewide golf industry, according to vice president/director of corporate have a $1.3 million purse, and will rate tents as fast as anyone in the ginia, and of 2015 Players Champi- the most recent (2006) World Golf operations for Detroit-based Crain require 750 volunteers to aid han- country.” onship winner Rickie Fowler. Foundation data. Experts say that Communications Inc. (which owns dling the 144-player field and ex- Buyers usually were car compa- “Quicken Loans and our family picture hasn’t changed much. Crain’s Detroit Business), whom he pected 40,000 fans during the week, nies, their suppliers, and banks, he of companies are constantly look- The LPGA Volvik Championship’s knew from the metro Detroit busi- Karbo said. said. ing to attract exciting events to De- organizers predict the weeklong ness community. Planned are skyboxes on the “A lot of the golf industry in this troit to help fuel and promote the event will pump $12 million in new Crain introduced him to his wife, 16th and 18th greens, a corporate state was mostly dependent on the city’s revitalization,” Aaron Emer- economic activity into the region. Ashley Crain, who was captain of tent village, and champions club auto industry. When it crashed in son, Quicken Loans vice president Who loves Michigan? the golf team at Old Dominion Univer- within the clubhouse, according to the late 2000s, it affected a lot of the of communications, said via email. The LPGA sity. She also has written for Golf- Karbo. industry in the state,” said Kevin Quicken also is the tour’s official week and was a competitor on the Tournament, sponsorship and Frisch, CEO of Gaylord-based Fusion mortgage sponsor, while Kalama- The women’s tour doesn’t com- Golf Channel show “Highway 18.” ticket details, many of which still are Media Strategies, a golf and travel zoo-based Stryker Corp. is the PGA mand marketing or TV dollars on “Ashley is tournament chairper- being worked out, will be at marketing firm. “Since 2010, I’ve Tour’s official joint replacement the same enormous scale as the son. She helps guide big-picture volviklpga.com. Ⅲ seen the golf industry improving, in sponsor. PGA Tour, but that means the barri- planning,” Karbo said. “She’s well- Bill Shea: (313) 446-1626 rounds played and travel.” General Motors Co., which dropped er to entry for sponsors is lower. respected and known throughout Twitter: @Bill_Shea19 20151012-NEWS--0051-NAT-CCI-CD_-- 10/9/2015 3:35 PM Page 1

CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 51 natural gas, and say there are no Renewable programs ENERGY plans to uproot the wind turbines or FROM PAGE 1 solar panels they already have in- DTE Energy maker Whirlpool Corp. — say Senate stalled. Owns or contracts with: bills that would eliminate Michi- DTE says it has more wind and 860 megawatts from 13 wind gan’s renewable energy standard solar projects in the works. It recent- parks in Gratiot, Huron, Missaukee, and a companion mandate requir- ly received bids for a solar project Sanilac, Tuscola, Bay and Saginaw ing programs to reduce energy use that would generate 5 to 50 counties would cause the utilities to scale megawatt hours of electricity, Dim- back their efforts in pursuit of high- itry said. 23 solar projects generating 11 er profits. Consumers recently announced megawatts in Huron, Livingston, “Investor-owned energy compa- plans to buy electricity from a new Macomb, Monroe, Oakland, St. Clair, nies have little incentive to sell less 100-megawatt wind farm in Huron Tuscola, Washtenaw and Wayne energy and reap less profit,” the County. counties as part of its SolarCurrents Sierra Club’s Michigan chapter said “We’re buying wind power from pilot program, which installs 100- in recent Senate testimony, “but as seven different facilities. We own kilowatt to 1.1-megawatt solar regulated monopolies they can and two wind parks ourselves,” Bishop arrays on properties throughout should be required to help their said. “There’s been a tremendous Southeast Michigan — for a total of customers reduce energy waste.” amount of work done in this space, 15 megawatts Gov. Rick Snyder also has advo- and we just see that continuing.” 2 landfill projects generating 6.4 cated for upping Michigan’s renew- Since there’s evidence the man- megawatts in Oakland and St. Clair able targets — as much as 24 per- date has worked, “some have said, counties cent of a utility’s electric portfolio by ‘Why don’t you just keep it in the 1 biomass project generating 17 2025, he said in March. And, he books?’” said Moore, Nofs’ energy megawatts in Baraga County, added, Michigan should aim for a policy adviser. “We don’t want man- southeast of the Keweenaw combined renewable and efficiency dates. We don’t believe they are nec- Peninsula target of 30 percent to 40 percent essary.” within a decade, based on costs. The issue isn’t limited to the large Operates the voluntary But the governor has stopped players. GreenCurrents program for short of saying that should be man- The Michigan Municipal Electric As- residential customers, who can opt dated. sociation, which represents 40 mu- to purchase electricity from The Senate’s Energy and Technolo- nicipally owned electric utilities, renewable energy sources gy Committee has held hearings this said decisions about pursuing ener- summer and fall on a two-bill pack- gy efficiency and renewable sources Consumers Energy age that would update the 2008 law. are best left to local leaders. Included in the bills is a provision to “It would be our preference to be Owns or contracts with: repeal a mandate that utilities gen- allowed to do so without the burden 9 wind projects that generate 1.2 erate a portion of their electricity of rigid state mandates,” Jim Weeks, million megawatt hours. That from renewable sources. the association’s executive director, includes two wind farms it owns — Utilities were required to pro- wrote in submitted testimony. “His- Lake Winds in Mason County on duce 10 percent of their electricity tory tells us that a one-size-fits-all Lake Michigan, which generates a from renewable sources by 2015. approach to energy policy cannot capacity of 100.6 megawatts; and DTE and Consumers both say they compete with a process that leaves Cross Winds in Tuscola County in have met that target. these important decisions in the the Thumb, which generates a Revisions to the Senate bills, hands of our local governing bod- capacity of 111 megawatts sponsored by Republican Sens. ies.” Various solar projects that Mike Nofs, of Battle Creek, and John Preserve standards generate nearly 3,000 megawatt Proos, of St. Joseph, could be intro- hours through its Experimental duced next month based on testi- Yet Michigan is among more than Advanced Renewable Program mony gathered at the hearings, said two dozen states and Washington, Greg Moore, Nofs’ legislative director D.C., that have adopted renewable 7 biomass projects that generate and energy policy adviser. standards, according to a March more than 888,000 megawatt The legislation as drafted would INFOGRAPH BY LISA SAWYER/CRAIN’S DETROIT BUSINESS 2014 report from the Union of Con- hours replace the mandates with a process cerned Scientists, a Cambridge, 16 landfill gas projects that known as integrated resource plan- installation has fallen as the market Lower prices for installation are Mass.-based organization that per- generate more than 332,000 ning, which would be used to set has gained traction across the state. one reason why proponents of reforms science-based analysis of pol- megawatt hours Michigan rates. DTE and Consumers say the In a February report, the peal say it’s time to abolish man- icy issues such as clean energy, glob- 3 anaerobic digestion projects Public Service Commission IRP process is more flexible and , the state’s dates. al warming and agriculture. that generate nearly 22,000 transparent and allows utilities to energy regulatory agency, said the Another reason is aging coal. Of those states, 17 require at least megawatt hours consider all energy sources to find most recent wind contracts it ap- Consumers plans to retire seven 20 percent of a utility’s electric port- the best value for customers, rather proved cost in the range of $50 per coal-generation units by next year; folio come from renewable sources, 27 hydroelectric projects across than building their electric portfolios megawatt hour to build. That was DTE another two. Valerie Brader, according to the UCS report. Still the state that generate more than around renewable targets. about 10 percent lower than the whom Snyder appointed to lead the more, including California and New 541,000 megawatt hours This scenario is playing out in cheapest contracts approved in 2011 new Michigan Agency for Energy, testi- York, require at least 30 percent. Operates Green Generation states across the country, where law- and half as expensive as those from fied recently before the Senate ener- Michigan could support boosting program that allows residential and makers are attempting to roll back, if 2009 and 2010. gy committee that a total of 25 coal- its standard to 32.5 percent by 2030, business customers to buy not repeal, renewable standards. The standard also spurred nearly fired units are expected to come UCS analysts estimated. The group electricity supplied from renewable Mandates have been targeted in $3 billion in investment in renew- offline by 2020. modeled various scenarios, includ- energy states from Colorado to Kansas to able energy through 2014, based on “When we think about the pending assuming no changes to Michi- Announced a contract in Ohio. an assumption that installation cost ing EPA regulations, the Clean gan’s current standard. September with Geronimo Energy Proponents of eliminating the $2,000 per kilowatt hour, the MPSC Power Plan, that will put even more If the renewable requirement to buy electricity from a 100- standards say they were necessary said. It also is estimated to support pressure on Midwestern coal plants was increased to 32.5 percent, retail megawatt wind farm to be built in when the renewable industry was in roughly 8,200 jobs. and will drive even more transfor- prices for customers would rise by the Thumb’s Huron County infancy, but the solar and wind mar- “The renewable energy standard mation,” said Dan Bishop, a Con- about 3.5 percent by 2020 before kets now are large enough that they is resulting in the development of sumers spokesman. “In our mind, leveling off by 2030, the group pre- Sources: DTE Energy Co., Consumers Energy don’t need incentives. new renewable capacity and can be there is little question that inevitably dicted, and investment could reach “It’s time for that industry to sink credited with over 1,450 megawatt there’s going to be more investment $9.5 billion. UCS analysts also said critical to preserve these standards or swim on its own,” Moore said. hours of new renewable energy proj- in renewable energy and energy effi- it’s the best option to diversify utili- rather than replace them with a “What is the most cost-effective re- ects becoming commercially opera- ciency.” ties’ power portfolios and lessen the less-robust and more-complex source for our ratepayers? Not hav- tional since the (2008 law) took ef- Duplicating efforts reliance on fossil fuels. mechanism,” Sam Gomberg, UCS’ ing the Legislature pick winners or fect,” according to the MPSC’s Environmental groups also say a lead Midwest energy analyst, testi- losers based on the hot technology report. Utilities say they view the Clean shift toward more renewable re- fied before the Senate committee. of the day.” The utilities themselves offered Power Plan as a federal mandate sources will mean improved health “We know we want to continue Less costly similar data: Dimitry said the com- they’ll have to meet, so continuing benefits to Michigan residents. developing these resources, so let’s pany’s first wind project cost $115 Michigan’s standards would be du- “When the evidence is so clear maintain the standards and make The emphasis on renewables has per megawatt hour, while the price plicative. They want flexibility to that renewables and efficiency carry sure that happens.” had noticeable effects on the indus- of its most recent had dropped to consider all electricity generation with them significant benefits to the Lindsay VanHulle: (517) 657-2204 try, particularly on price. The cost of $50. sources, including renewables and people of Michigan, I believe it is Twitter: @LindsayVanHulle 20151012-NEWS--0052-NAT-CCI-CD_-- 10/9/2015 4:59 PM Page 1

52 CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015

“From my vantage point, we’re justified that policy mostly in terms TRADE Trans-Pacific Partnership already well positioned in these re- of trying to stimulate the domestic FROM PAGE 3 What the 12 member countries plan to accomplish, according to the White gions, so TPP isn’t going to have economy; however, those low inter- The TPP is expected to boost the House: much impact because the business est rates would tend to put down- world economy by $223 billion per model has matured,” Offenbacher ward pressure on the dollar,” Bal- year, or about 0.3 percent of last Eliminate 18,000 tariffs on U.S. exports said. “Most auto parts are built in lard said in an email. “This could year’s global GDP, by 2025, accord- Establish that 45 percent to 55 percent of content of a final product must be the region they’re sold.” easily lead to the charge that we are ing to the Peterson Institute for Inter- sourced from TPP countries, down from 62.5 percent under NAFTA Offenbacher said he’s not op- manipulating our currency... .” national Economics , a Washington, Prevent other TPP countries from creating new trade tariffs posed to the agreement, but be- Under the TPP deal, U.S. auto D.C., think tank. However, U.S. lieves other industries, such as agri- manufacturers also would lose U.S. companies aren’t expected to feel Establish universal workplace safety standards culture, will benefit more. tariffs on trucks and sedans import- the greatest economic impact, ac- Ban child and forced labor While the supply base remains ed from Asian countries that now cording to the study. less than impressed, but not op- make them more expensive to U.S. Standardize the right to collective bargaining and unionization. “It will make an important differ- posed, Ford Motor Co. is urging Con- buyers, though not immediately. ence in certain sectors, but overall Establish an eight-year protection on drugs from generic competition gress to reject the TPP because it The 25 percent U.S. duty on im- its economic effects will be modest, Create a fair minimum wage standard doesn’t include any measures to ported trucks will be phased out, largely because we already have battle currency manipulation — but not for a few decades, accord- Combat wildlife tracking, overfishing, overharvesting and establish other nearly free trade,” said Charles Bal- where Asian countries, specifically ing to the agreement. Various other environmental protections lard, professor of economics at Japan, work to keep their currency tariffs, such as the 2.5 percent duty Michigan State University. Create anti-corruption measures low against the dollar to make their on sedans, would also be phased The U.S. has free trade agree- products cheaper than U.S. prod- out over as much as 25 years. ments with 20 countries, including tion, the parent organization of the will significantly impact the auto ucts sold in Asia, undercutting U.S. While the TPP is a plus-minus Mexico, Canada, Chile and Aus- Troy-based Original Equipment Sup- sector or its wages. manufacturers. game for most, Ballard said he sup- tralia. While these agreements will pliers Association, said the high con- Manufacturing has changed in “U.S. lawmakers took unprece- ports the agreement for geopolitical still exist, the TPP will largely re- tent number is a net positive for all recent years, and exporting car dented action to set a clear negoti- reasons rather than economic. place many of their provisions. TPP countries. parts from the U.S. is less common, ating objective for addressing cur- “I am very concerned about While the accord sets rules and “More content needs to come thanks to shifts in thinking about lo- rency manipulation in all future some of the aggressive actions guidelines on a variety of industries, from TPP countries to benefit from gistics and the costs of doing busi- trade deals,” Ziad Ojakli, group vice taken by China, and I think that ex- the automotive industry was de- the tariff preference, and that’s a re- ness, McAlinden said. president of government and com- panded commercial ties among signed to see the greatest impact. ally good thing for parts manufac- “We’ve begun to think producing munity relations for Ford, said in a other countries on the Pacific Rim TPP countries account for more turers,” Wilson said. “It’s easy for a locally in the same currency as your statement. “The TPP fails to meet may end up being very important, than 27 million vehicles of the more metal stamper or other parts maker revenue is the only smart way to that test.” in terms of providing a counter- than 70 million manufactured an- to use cheap labor in China or else- go,” McAlinden said. “The lowest U.S. Rep. Debbie Dingell, D- weight to China,” Ballard said. nually. where, and this really discourages landed cost for labor, globally, is not Dearborn, joined Ford over the lack Experts speculate that the TPP As part of the deal, North Ameri- them from using non-TPP coun- as efficient anymore.” of currency manipulation rules and could force China to join its ranks, can Free Trade Agreement countries; that’s a significant victory.” This means Southeast Michigan is urging Congress to make side but only if it follows the stricter rules tries — the U.S., Canada and Mexi- By keeping the majority of con- parts suppliers favor producing parts agreements over the issue. on labor and intellectual-property co — and Japan agreed to rules tent made in the TPP countries, in the country where the cars are as- Local economists, however, be- protections in the accord. governing how much content of the costs remain relatively consistent sembled and, usually, will be sold — lieve the issue of currency manipu- “It’s the biggest trade deal in a final product, a car, must be for those nations. partly to avoid tariffs, but mostly to lation is overblown. generation, and it could force China sourced within the TPP region. The China was strategically left out of account for rapid engineering “Currency depreciates for a vari- to play by our rules,” Lim said. “The “Rules of Origin” provision lowers the TPP — a likely attempt to put the changes and logistics costs. Eliminat- ety of reasons, and it’s nearly impos- other members of the TPP now will the threshold of how much of a ve- screws to the nation to improve its in- ing tariffs on parts destined to be sold sible to define what is manipula- not follow China’s rules, and (China) hicle must be manufactured locally. tellectual-property regulation and rein, say, Australia, doesn’t make any tion,” said Linda Lim, professor can’t join the TPP unless it reforms Final details haven’t been released duce its state-owned enterprises, difference if those parts are already strategy with a focus on economic its domestic policy.” yet, but experts believe the content which get a competitive advantage made at an Australian plant. policy and international trade in Experts speculate that South requirement will drop to 45 percent from government subsidies. Lon Offenbacher, president and Southeast Asia at the University of Korea may eventually join the TPP, or 55 percent from NAFTA’s 62.5 According to the U.S. govern- CEO of Troy-based auto supplier In- Michigan. creating an economic power of many percent. ment, eliminating tariffs and the teva Products LLC, said the impact of Ballard said the U.S. could also industrialized nations. While the local content provision rules of origin will boost manufac- the TPP is minimal. be accused of manipulating its cur- “Our members operate in the is lower than NAFTA, it’s higher than turing wages in the U.S. by as much He said products exported from rency, pointing to the Federal Re- global economy, so it’s important to Japan’s reported demand of 40 per- as 12 percent. the U.S. to Asia spend as much as 40 serve’s $3 trillion stimulus of the have a global agreement,” Wilson of cent or less. Ann Wilson, senior But Sean McAlinden, chief econ- days on the water, which is plenty of economy since 2008. MEMA said. “We believe this is a vice president of government affairs omist for the Ann Arbor-based Cen- time for currency shifts to upend “The Fed has done its best to very significant step forward.” at the Washington D.C.-based Motor ter for Automotive Research, remains any financial benefit Inteva would keep interest rates in the U.S. very Dustin Walsh: (313) 446-6042 & Equipment Manufacturers Associa- cautious whether the agreement get from exporting. low for seven years now. They have Twitter: @dustinpwalsh

Mazur’s company segued from parts of the world, such as India and “And there has been main- Strategies,” that concentrates on JAPAN teaching Japanese culture to Ameri- China. streaming of Japanese business,” cross-cultural communications and FROM PAGE 3 cans to teaching Japanese quality “In Novi (where Walsh also has a Lim said. “It has not been Ameri- the varied nuances in business consulting companies were hired to techniques to Americans. Two of campus), we have auto suppliers canized, but there’s been so much practices. teach U.S. workers about Japanese the methods he has been teaching from India, exchange between Japan and the “We emphasize writing and customs. are Quality Function Deployment, South America U.S. that Japan has westernized it- email using simple words and pre- Glenn Mazur, president of Japan designing products to meet the and Europe,” self. It is not so different anymore.” cise language so the meaning is not Business Consultants LLC in Ann needs of customers; and Hoshin Hagan said. Detroit-area companies and lost,” she said. “In public speaking, Arbor, who was featured in the Kanri, the main component of lean Linda Lim, a their employees overall are more we teach students to speak slowly Crain’s story 30 years ago, had one thinking and strategic planning. University of Mich- multicultural, Hagan said. To ac- and articulate their words.” of those companies. Mazur is working on writing new igan professor of commodate that, Walsh College has Hagan stressed that distinct geo- Japanese culture classes lost their ISO standards. business strategy a student organization geared to in- graphic borders are gone when it popularity because the United Mazur, 63, who speaks fluent and a specialist ternational students. comes to business. “Students need to States and the countries it does Japanese and some French, now Linda Hagan: in Southeast “These students are living here appreciate and respect people who business with became more cultur- has two employees; years ago he Walsh professor Asia, said the but still close to their culture,” she are different than them,” she said. ally diverse and savvy, Mazur said. had three. He travels extensively teaches MBA class emphasis on said. Kopp said her company, which Additionally, Japan got bypassed talking about QFD and ISO to “give on cross-cultural Japanese busi- Walsh hosts an international day she started 21 years ago, helps by other Asian countries, such as back, pass the DNA to the next gen- communication. ness waned as with native food and clothing, and bridge the communication gap be- China and India, as a low-cost pro- eration.” Japan entered students can share their culture tween Japanese and Americans. ducer of goods, he said. These days, he said, Japanese into two decades of economic stag- with one another. The college also Lim said Japanese culture in gen- Mazur still has his business, but it quality processes “transcend every- nation starting in 1989. “Japan was has a international student adviser eral has become more embedded in has slowly transitioned to a new thing. If you don’t know quality not growing; it was not cool,” Lim who helps foreign-born students the American lifestyle in recent years. specialty: providing expertise on methods, it doesn’t matter how said. navigate academic procedures. For example, the Japanese way of Japanese quality metrics. deeply you bow.” She said that since 2010, Japan Meanwhile, American students at living in a simple, decluttered envi- “As U.S. auto companies im- Linda Hagan, a professor at Troy- has been recovering because of sev- Walsh can travel abroad for a couple ronment has gained momentum in proved quality, Japan responded by based Walsh College and chair- eral factors. Since 2012, it has had a of weeks to locales such as Latvia, Eu- the United States. So has eating moving its automotive quality bar woman of its business communica- pro-business prime minister — rope and Israel, where they are im- sushi and enjoying Japanese art and up,” he said. “As consumers, we all tions department, said that because Shinzo Abe — who has been in the mersed in those cultures. anime. benefited from this” with higher- of how global business has become, media limelight more than previous Hagan teaches an MBA class, “Japan has become cool again,” quality vehicles. there’s more of an emphasis on all prime ministers. “Communication and Success she said. 20151012-NEWS--0053-NAT-CCI-CD_-- 10/9/2015 6:09 PM Page 1

CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 53 CRAIN’S Troy media company acquires TV Guide owner DETROIT BUSINESS www.crainsdetroit.com Editor-in-Chief Keith E. Crain By Natalie Broda TVInsider.com, for an undisclosed not disclosed. ly something to watch. The first Group Publisher Mary Kramer, [email protected] (313) 446-0399 or [email protected] amount from Los Angeles-based DeAngelis said he saw possibili- issue was released in 1953. Associate Publisher Marla Wise, (313) 446-6032 A deal by a Troy-based company OpenGate Capital. ties between TV Weekly, a regional “We were massive in the ’60s and or [email protected] Editor Jennette Smith, (313) 446-1622 or that publishes TV listings books that The acquisition merges NTVB’s 1 television guide in 165 markets dis- ’70s,” Fisherman said. “The whole [email protected] come with newspapers gives it a million subscribers with TVGM’s 1.8 tributed through newspapers; idea of magazines at checkout lines Executive Editor Cindy Goodaker, (313) 446-0460 or [email protected] legendary name in magazines that million, creating the country’s largest NTVB’s cable and satellite maga- was built by the racks TV Guide put Director, Digital Strategy Nancy Hanus, was once one of the highest-circu- group of print publications for televi- zines; and TV Guide. in. At that time they owned the wire (313) 446-1621 or [email protected] Managing Editor Michael Lee, (313) 446-1630 or lating weeklies in the country. sion watchers, said Andy DeAngelis, TV Guide began as a pamphlet to racks. There was nothing else like it. [email protected] NTVB Media Inc., owner of TV president and CEO of NTVB Media. help sell television sets, according We had 25-30 million in audience Managing Editor/Custom and Special Projects Daniel Duggan, (313) 446-0414 or Weekly, last week said it acquired The company has a reach of 20 mil- to David J. Fishman, CEO of TV on a weekly basis, and every TV [email protected] New York-based TVGM Holdings LLC, lion for its print and digital content. Guide Magazine, to convince po- show or program used it to an- Assistant Managing Editor Kristin Bull, Ⅲ (313) 446-1608 or [email protected] owner of TV Guide Magazine and Financial terms of the deal were tential buyers that there was actual- nounce fall shows.” News Editor Beth Reeber Valone, (313) 446-5875 or [email protected] Senior Editor Gary Piatek, (313) 446-0357 or [email protected] ergy, Jones said. Sept. 30, and Jones said he doesn’t Center for Advanced Technologies, Research and Data EditorSonya Hill,(313) 446-0402 FOCUS: HOPE While its core workforce training yet know how the organization which offered students who may or [email protected] FROM PAGE 1 Web Producer Norman Witte III, (313) 446-6059 programs have seen reduced fund- fared financially for the year. not have access to a college educa- or [email protected] Editorial Support (313) 446-0419; YahNica Craw- said. “Very rarely does a grant pro- ing, Focus: Hope has secured fund- “We’ve taken steps to conserve tion an opportunity to earn an engi- ford, (313) 446-0329 ceed as smoothly as originally envi- ing to expand its efforts in related cash, so obviously there were some neering degree. Newsroom (313) 446-0329, FAX (313) 446-1687 , sioned.” programs. cash demands on the business,” he The appropriation to Focus: Hope TIP LINE (313) 446-6766 On the Community Ventures The MEDC awarded it a $500,000 said. Jones said he expects overall re- from the state’s general fund also di- REPORTERS grant, “the performance metrics were grant in January to create 131 jobs sults for 2015 to be “pretty good.” minished over a number of years. Jay Greene, senior reporter Covers health care, insurance, energy, utilities and the environment. met ... we were not informed that we in Detroit with Android Industries by Focus: Hope reported positive fi- Three public grants supporting (313) 446-0325 or [email protected] did not hit the performance metrics,” June 2018, Durian said, noting that nancial results over the past four Focus: Hope’s workforce education Chad Halcom Covers litigation and the defense industry. (313) 446-6796 or [email protected] he said. Focus: Hope is well on track to do years. And it closed out a long-term, programs in 2014 were not renewed Tom Henderson Covers banking, finance, technology and biotechnology. (313) 446-0337 or Focus: Hope’s machinist and in- that. $100 million campaign that exceed- for 2015. [email protected] formation technology workforce In mid-September, the nonprofit ed its goal by $2 million and raised The Michigan Economic Develop- Kirk Pinho Covers real estate, higher education, ment Corp. Oakland and Macomb counties. (313) 446-0412 or training programs will be idled after was awarded a $3 million grant by $30 million between the end of 2012 awarded Focus: Hope a [email protected] current classes and job placements the U.S. Department of Labor as part and end of last year. $1.5 million employee limited- Bill Shea, enterprise editor Covers media, advertising and marketing, the business of are completed and include layoffs of the American Apprenticeship Focus: Hope launched the cam- term, nonrenewable training con- sports, and transportation. for 17 employees by the end of No- Grants. paign in 2005 before putting it on tract for 2014 that was supposed to (313) 446-1626 or [email protected] Lindsay VanHulle, Lansing reporter. (517) 657- vember, the Detroit nonprofit said. That funding, intended to help hold during the recession, then qui- have run through last year. The 2204 or [email protected] “We just haven’t been able to se- train people for higher-wage and etly reviving it as the economy MEDC extended the grant through Dustin Walsh Covers the business of law, auto suppliers, manufacturing and steel. (313) cure funding at this point in time” higher-skill jobs, “is a real shot in began to improve. The effort was in- June of this year to enable Focus: 446-6042 or [email protected] for new workforce training classes, the arm for us,” Jones said. tended to fund, among other Hope to complete classes and meet Sherri Welch, senior reporter Covers nonprofits, services, retail and hospitality. (313) Jones said. It will help fill Focus: Hope’s things, operations and ex- metrics, said Durian, the 446-1694 or [email protected] “It’s somewhat frustrating that this workforce training funding gap, panding the number of director of the MEDC ADVERTISING is happening because there is strong “but it doesn’t solve the issue,” he people in the nonprofit’s Community Venture pro- Sales Inquiries (313) 446-6032; FAX (313) 393-0997 demand on the part of students ... said. Part of the funding, which will training programs. gram. Sales Manager Tammy Rokowski and employers wanting training.” be made over five years, will go to It had raised just over “They fulfilled the met- Senior Account Executive Matthew J. Langan Advertising Sales Christine Galasso, Catherine The program suspension comes place incumbent workers in ap- $69 million by December rics of the contract,” train- Grace, Joe Miller, Sarah Stachowicz in the wake of 10 percent pay cuts prenticeships. 2012, according to Crain’s ing over 170 people, he Classified Sales Manager Angela Schutte, (313) 446-6051 for about 125 employees and a shift “The gap in the programs we list of the Largest Compre- said. Classified Sales Lynn Calcaterra, (313) 446-6086 to reduced “summer hours” in June. were running and need to be run- hensive Campaigns at the A second MEDC grant of Audience Development Director Eric Cedo Employees in Focus: Hope’s sen- ning is significant, and it’s not only a time. And it went on to James Durian: $1.095 million over two Events Manager Kacey Anderson Creative Services Director Pierrette Templeton ior meal and early-childhood cen- one-year gap,” Jones said. raise an additional $30 mil- Focus: Hope “ful- years made to Focus: Hope Senior Art Director Sylvia Kolaski ter programs, which have dedicat- Part of the problem is that the lion by the end of 2014. filled the minimum through the Community Marketing Coordinator Ariel Black ed federal funding, were not workforce development program Some of the gifts record- metrics” of MEDC Ventures program ended in Special Projects Coordinator Keenan Covington Sales Support Suzanne Janik, YahNica Crawford affected. hasn’t had sustained funding since ed were not cash, and some contract. February. The grant, which Editorial Assistant Nancy Powers The pay and operating cuts were 2011. Since then, the program has were pledges that will be covered 2013-14, funded Production Manager Wendy Kobylarz made to conserve cash, Jones said. relied on piecing together funding realized in the future, Jones said. services such as case management, Production Supervisor Andrew Spanos While some employees are ex- from the state, corporations and “We did have periods of time in employee assistance transitioning CUSTOMER SERVICE pected to remain on four-day work- donors. there we lost all workforce training into employment, job coaching and Main Number: Call (877) 824-9374 or [email protected] weeks through the end of the year, “The funding required for work- funding and had to use campaign supportive services such as trans- Subscriptions $59 one year, $98 two years. Out of Focus: Hope’s buildings are operat- force development is a long-term proceeds to keep them going ... and portation, day care or work boots to state, $79 one year, $138 for two years. Outside U.S.A., add $48 per year to out-of-state rate for sur- ing five days a week, he said. thing. We need sustained funding to keep operations going,” he said. help them stay in jobs, Durian said. face mail. Call (313) 446-0450 or (877) 824-9374. Single Copies (877) 824-9374 “When we thought there would over longer periods of time,” Jones “This campaign didn’t happen in The renewal for the program was Reprints (212) 210-0750; or Krista Bora at be cash shortages, we went ahead said. a vacuum.” awarded this year to SER Metro-De- [email protected] To find a date a story was published (313) 446- and proactively reduced salaries Focus: Hope’s fiscal 2015 annual Focus: Hope provides programs troit and Goodwill Industries of 0406 or e-mail [email protected] and hours” and building hours over report and 990 tax form are not yet in workforce development, food and Greater Detroit, he said, rather than Crain’s Detroit Business is published by the summer to save money on en- available for the year that ended basic needs, early child care/educa- to Focus: Hope. Crain Communications Inc. Chairman Keith E. Crain tion and neighborhood revitaliza- Those agencies “are just more fit President Rance Crain tion. to provide the wraparound services Treasurer Mary Kay Crain Executive Vice President/Operations INDEX TO COMPANIES It had just under $35 million in we need and the case management William A. Morrow These companies have significant mention in this week’s Crain’s Detroit Business: total revenue in fiscal 2014 and ex- and success coaching,” Durian said. Executive Vice President/Director of Strategic Operations Chris Crain Bissell Homecare...... 40 Gifford, Krass ...... 50 penses totaling about $31.4 million, “That’s different than the hard-skills Executive Vice President/Director of Corporate Black Star Farms...... 37 Hart & Associates Construction ...... 44 according to its annual report. training Focus: Hope does.” Operations KC Crain Blue Team Restoration...... 4 Int’l Automotive Components Group...... 40 Vice President/Production & Manufacturing Funding for Focus: Hope’s core A grant of about $566,000 from Dave Kamis Bonobo Winery ...... 35 Inteva Products...... 40, 52 workforce training programs has the Detroit Employment Solutions Chief Financial Officer Thomas Stevens Brys Estate ...... 36 Japan Business Consultants ...... 52 Corp. Chief Information Officer Anthony DiPonio Butzel Long...... 50 Jones Day...... 50 been in flux since 2011, when the to Focus: Hope in 2014 also ex- G.D. Crain Jr. Founder (1885-1973) Center for Automotive Research ...... 5 Leelanau Cellars...... 37 federal government reduced the pired. DESC gave Focus: Hope an Mrs. G.D. Crain Jr. Chairman (1911-1996) Consumers Power ...... 1 Michigan Economic Development Corp...... 53 amount of discretionary Workforce extension of several months on the Editorial & Business Offices 1155 Gratiot Ave., Detroit MI 48207-2732; Cooper-Standard Automotive...... 40 Michigan Grape and Wine Industry Council ...36 Investment Act funds that gover- contract to allow all of its cohorts to (313) 446-6000 Crain Communications ...... 49 Michigan Municipal Electric Association ...... 51 nors could allocate to agencies in finish training, she said. Cable address: TWX 248-221-5122 AUTNEW DET Dinsmore & Shohl ...... 50 Mopec...... 43 their state. Focus: Hope had re- The program was intended to be CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is Domino’s Pizza ...... 40 MSX International...... 40 published weekly, except for a special issue the ceived $5 million in WIA funding for a finite period of time and was third week of November, and no issue the third DTE Energy...... 1 Pulse220 ...... 6 week of December by Crain Communications Inc. FCA US ...... 40 Red Arrow Strategies ...... 3 through the state and about not an ongoing program, Executive at 1155 Gratiot Ave., Detroit MI 48207-2732. Peri- Focus: Hope...... 1 Resort & Golf Marketing...... 3 odicals postage paid at Detroit, MI and additional $860,000 through the state’s general Director Pamela Moore wrote in an mailing offices. POSTMASTER: Send address Forty-Five North...... 37 Round Barn...... 36 budget for fiscal 2011. emailed statement. changes to CRAIN’S DETROIT BUSINESS, Circula- Fusion Media Strategies ...... 50 Top Cat Sales...... 4 tion Department, P.O. Box 07925, Detroit, MI That funding had long supported Focus: Hope continues to be “a 48207-9732. GST # 136760444. Printed in U.S.A. Garden Fresh Gourmet...... 41 University of Michigan ...... 4 Focus: Hope’s machining, informa- valuable DESC partner,” she said. Ⅲ Entire contents copyright 2015 by Crain Commu- General Motors...... 40 Verterra ...... 37 nications Inc. All rights reserved. Reproduction or George P.Johnson Co...... 6 Walsh College...... 52 tion technology and “Fast Track” Sherri Welch: (313) 446-1694 use of editorial content in any manner without math and reading students and its Twitter: @SherriWelch permission is strictly prohibited. 20151012-NEWS--0054-NAT-CCI-CD_-- 10/9/2015 5:33 PM Page 1

54 CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 ON THE WEB RUMBLINGS WEEK OCT. 3-9 cruiting account it lost in May, a bachelor’s degree from Oakland Reese’s pop-up clothing Banking legend also was recently hired to do mar- and a law degree from Wayne keting for online travel agency State in six years, a year shorter Travelocity and Empire State Devel- than the traditional path. store fashions city pride Aubrey Lee opment Corp., New York state’s Detroit Metropolitan Airport chief economic development will get a second route to Ger- Noted clothing designer and De- Linda Solomon will pair 15 Detroit dies at 80 agency. many when Delta Air Lines Inc. troit native Tracy Reese has a new police officers with an equal num- Ann Arbor-based informa- adds a nonstop daily flight to Mu- pop-up store that will be open ber of children in Detroit Police Ath- Detroit banking legend Aubrey tion-management company Pro- nich Airport next spring. The through at least this month. letic League’s programs. Lee died Friday at age 80. Lee is Quest LLC has acquired Ex Libris, a route will operate six days a week Detroit Is the Detroit Police Chief James Craig credited as the Jerusalem-based maker of soft- beginning May 26. New Black, one of is among the officers taking part first African- ware for libraries. Terms were not Public bus drivers in Detroit the newest city this year in Solomon’s campaign. American to disclosed. will receive a 6 percent raise to pride T-shirt Greeting card maker Avanti Press take a manage- The third cohort of J.P. Mor- their base wages through a new shops, is hosting of Detroit is donating printing and rial role at the gan Chase’s Detroit Service Corps, contract with the city, AP report- the pop-up. packaging for 2,000 sets of 15 holi- National Bank made up of 12 managers from the ed. Mayor Mike Duggan and Amal- Reese was day cards that will be available on- of Detroit, in bank’s lines of business, began gamated Transit Union Local 26 scheduled to ap- line Nov. 1 at detroitpal.org and later 1966. He went helping area nonprofits Eastern leaders announced details of the pear there last at retail outlets. Proceeds benefit on to influence Market, EcoWorks, Greening of De- agreement, which also includes a Tracy Reese: weekend. Detroit PAL. Aubrey Lee: Was the careers of troit and TechTown with a variety one-time 4 percent bonus. Designer as host. Known for her strong influence. many impor- of projects. colorful prints UM sports star in Web series tant Detroit After first rejecting in mid- OBITUARIES and bold looks, Reese is offering figures, including former Mayor September a master labor agree- one-of-a-kind runway pieces, The University of Michigan’s foot- Dave Bing and New Detroit Inc. Pres- ment with Detroit-based Blue Grace Lee Boggs, a longtime evening wear, and items from her ball, softball and men’s basketball ident and CEO Shirley Stancato. Cross Blue Shield of Michigan, em- human rights, labor and environ- more affordable lines. teams are the focus of a new all-ac- ployees represented by the UAW mental activist who founded the Said Reese, a graduate of Cass cess series called “Our Michigan” COMPANY NEWS voted to accept a four-year agree- Detroit-based James and Grace Lee Technical High School: “This is my that will premiere this month on ment, Blue Cross officials said. Boggs Center to Nurture Community hometown and it’s extremely close Derek Jeter’s athlete-focused The Play- Flipsi, an Ann Arbor company Leadership, died Oct. 5. She was to my heart.” ers’ Tribune website. that makes a patent-pending OTHER NEWS 100. The end date on the pop-up is “Through a combination of docu- food-grade plastic baby bottle Charles “Chuck” Costa, a com- flexible, said Alyssa Jones, director of mentary videos, first-person narra- that can be turned inside-out for An Oakland County Circuit munity activist and perennial po- communications at Tracy Reese. tives, photo diaries and alumni sto- easy cleaning, won the $7,000 Court judge approved the sale of litical candidate who ran for ries, ‘Our Michigan’ will give a voice to first-place prize at a pitch contest the closed Northland Center mall to mayor of Detroit in the 1980s and ‘Hope’pics to benefit PAL these programs while providing at the Macomb-OU INCubator in the city of Southfield for $2.4 mil- 1990s, died Oct. 6. Costa was a unique focus on Sterling Heights. The incubator is lion. The city said it plans to real estate broker and owner of This year’s Pictures of Hope cam- what life is like for affiliated with Oakland University. spend $8 million to $10 million to The Paint Store in Detroit. He was paign organized by Birmingham- student-athletes, Cash and in-kind prizes worth demolish Northland, remediate 80. based celebrity photojournalist coaches, staff and $20,000 were awarded in the pitch the property and sell it to a quali- the surrounding competition for small businesses. fied developer. UM-MSU digits community of a Fiat Chrysler Automobiles NV is Two large mixed-use projects world-class uni- offering so-called second-tier — one a new development, an- The University of Michigan and versity,” the UM UAW members as much as $29 an other a redevelopment of several Michigan State University football athletic depart- hour — up from $25 previously buildings and construction of a teams will play at 3:30 p.m. Saturday DerekJeter: ment said in a proposed — under a new tenta- new one — in the Eastern Market at Michigan Stadium in Ann Arbor. It’s Going old school. statement. tive agreement that avoided a area are working their way the 108th meeting between the in- As part of its strike by 40,000 union members, through Detroit City Council ap- state rivals, with UM holding a 68-34-5 150th anniversary celebration, UM sources familiar with the matter provals, with more than 210 new edge. Whichever wins on the field, athletics gave The Players’ Tribune told Automotive News. The tier- residential units possible. here’s a comparison of the teams and access to home and road game two workers would almost match David Manardo, director of the their schools in terms of dollars, cents days, practices, academic experi- veteran members’ wages — from Detroit Building Authority, will as- and other measurements: ences, and players’ time on and off a maximum of $19.28 now — sume much of the COO role at the playing fields. after an eight-year grow-in peri- City Hall for Gary Brown, who was Teams founded WIKIPEDIA The series was Jeter’s idea. He od, the sources said. appointed to take over adminis- Michigan: 1879 Michigan Stadium will be the site of grew up in Kalamazoo and opted to Flint-based health plan tration of the Detroit Water and Michigan State: 1896 Saturday’s MSU-UM football game. play pro baseball after high school provider HealthPlus of Michigan Sewerage Department. Manardo in 1992 instead of taking a UM said it has signed an exclusive, will continue to oversee the build- All time record (through Oct. 3) baseball scholarship offer. Royalty revenue (June ’13-June ’14) nonbinding letter of intent to ing authority and will oversee the Michigan: 919-329-36 The media site (Theplayerstri- merge with Detroit-based Health General Services Department, De- Michigan State: 676-442-44 Michigan: $7.4 million bune.com), which gives a platform Michigan State: $1.7 million Alliance Plan of Michigan. The team- partment of Public Works, Public Stadiums for athletes to directly address fans, ing would create the state’s sec- Lighting Department and Coleman Michigan Stadium, opened in 1927 at a Royalty rates from licensed launched on Oct. 1, 2014. ond-largest HMO with 433,000 A. Young International Airport. merchandise cost of $950,000; seats 107,601 members and about $2.5 billion Tom LaSorda, founder and Spartan Stadium, opened in 1923 at a Michigan: 12 percent ‘Homegrown Rye’ available in annual revenue. managing partner of Birming- cost of $160,000; seats 75,005 Michigan State: 10 percent Financial news and data ham seed-stage venture capital Detroit City Distillery’s new rye, business Benzinga said it plans to company IncWell LLC, won the Number of Twitter followers* Athletic department budget (2014-15) Homegrown Rye, is available at its move its headquarters to Detroit Champion Award at the 15th an- Michigan: 333,115 (@umichfootball) Michigan: $158 million revenue, $142 Eastern Market tasting room and to from Southfield by month’s end. nual Automation Alley gala at the Michigan State: 113,992 million expenditure purchase. The bright, spicy rye rolls Benzinga said it will relocate its Royal Park Hotel in Rochester. La- (@MSU_Football) Michigan State: $104.6 million revenue, out in retail stores, including Mer- $107.4 million expenditure offices and 35 full-time employees Sorda was honored for helping Number of Instagram followers chant’s Fine Wine in Dearborn and to One Campus Martius, the for- fund early-stage companies and Michigan: 91,791 (umichathletics) Total enrollment (fall 2014) Sunshine Market in Detroit, through- mer Compuware Building now supporting Automation Alley, the Michigan State: 51,719 (msu_spartans) Michigan: 43,625 out October. owned by Bedrock Real Estate Ser- Troy-based nonprofit technology Michigan State: 50,085 The organic rye is from a family- vices and Meridian Health Plan. business association. Troy-based Number of Facebook ‘likes’ owned farm in Eaton County and has Detroit-based advertising IPS Technology Services was named Michigan: 1,483,510 Endowment: been aged in a freshly charred, white agency Campbell Ewald picked up member company of the year at Michigan State: 736,708 Michigan: $10.4 billion American oak barrel, using methods a third new account in three the gala. Michigan State: $2.5 billion to highlight the grain. It expresses Registered trademarks weeks: Minneapolis-based hotel Oakland University and Wayne hints of coffee on the nose and tastes chain Country Inns & Suites by Carl- State University are teaming up to Michigan: 54 (including block M and of carmel with a rich, buttery finish. “Big House”) * Social media data is through Oct. 7 son. Terms were not disclosed. offer a fast-track program for stu- Sources: Brinks Gilson & Lione, USAToday.com, The Detroit City Distillery team Michigan State: 17 (including block S Campbell Ewald, scrambling to dents seeking law degrees. Under MGoBlue.com,Wikipedia, Freep.com, Crain’s research said this is perhaps its “most excit- and the Spartan helmet) replace the massive U.S. Navy re- the agreement, students can earn ing venture to date.” DBpageAD_DBpageAD.qxd 10/9/2015 11:06 AM Page 1

Can Michigan provide consumers and employers the data needed to make smart decisions in health care? A growing number of Michigan’s health insurers, hospitals and consulting ﬁ rms are already doing it.

Attend the debate led by keynote speaker Leah Binder, CEO of The Leapfrog Group, a national nonprofit based in Washington, DC, representing employers and other purchasers LEAH of health care calling for improved safety BINDER and quality in hospitals. TITLE SPONSOR

Michigan’s “F” grade came from the Report Card for State Price Transparency Laws issued by Catalysts for Payment Reform and the Health Care incentives Improvement Institute. Find out why the score was so low. WEDNESDAY, OCT. 28 )($785,1*TWO BREAKOUT SESSIONS 7:30 A.M.-1 P.M. Ŷ Providers: The Challenges of Transparency Marriott Renaissance Center, Detroit What will it take for Michigan to have a more transparent environment? Players from hospitals and insurance companies weigh in. Register at CrainsDetroit.com/events or call (313)446-0300 EMPLOYERS: Get money-saving lessons here! 3/86 Ŷ Employers: The HR Case for Transparency in Health Care Employers from small, medium and large companies will off er ways that they’ve found success in educating employees about the costs of health care.

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TITLE SPONSOR KEYNOTE SPEAKER SPONSOR SESSION SPONSOR MAJOR SPONSORS

NOTEBOOK SPONSOR BREAK SPONSORS REGISTRATION SPONSOR BOOTH SPONSORS PRINT SPONSOR

F CRAIN’S DETROIT TER O BUSIN PRIN ESS L EV CIA E FI NT F S O

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David Girodat, BBA ’85, MSF ’92 Regional President, Eastern Michigan Fifth Third Bank

FORTUNE 500® companies turn to Walsh every day. Our professors work in the real world, so our students are ready for it. And our alumni prove it. If you’re looking for a business degree that will help you be a future business leader, turn to Walsh College. REGISTRATION STARTS NOVEMBER 23 GET STARTED AT WALSHCOLLEGE.EDU/WINTER

TROY NOVI CLINTON TWP PORT HURON