Shinola All Wound up for Online Sales

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www.crainsdetroit.com Vol. 29, No. 10 MARCH 11 – 17, 2013 $2 a copy; $59 a year

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Who will eventually replace ‘The Captain’ at Penske? CRAIN’S MICHIGAN BUSINESS At West Michigan’s marinas, low water raises concerns, Page 9 Bonus State of funding Michigan is seeing more venture capital and private equity KEVIN FOWLER money. Read all about it in The New Michigan Deal, a 40-page special edition delivered with this issue. Shinola all wound up for online sales Report’s tip This Just In Watch, bike to tighten Report: Michigan hospitals show financial improvement company to skills gap: A report from the Michigan Health and Hospital Association points to improved financial add workers performance by Michigan Cooperation hospitals. BY SHERRI WELCH CRAIN’S DETROIT BUSINESS The state’s 134 community BY DUSTIN WALSH hospitals increased average In many ways, assembly of the CRAIN’S DETROIT BUSINESS operating margins in 2011 to tiny “engines,” or movements, 3.3 percent from 2.8 percent in that will power Shinola watches The Southeast Michigan jobs 2010 primarily by reducing couldn’t be more different than market is rebounding, but an ag- costs, improving quality and manufacturing automotive parts. ARA HOWRANI ing workforce and skills gap con- recording a 9 percent reduc- Where automotive parts manu- Bedrock Manufacturing Co. CEO Heath Carr says it matters that Shinola tinue to plague employers in need, watches and bicycles are assembled in Detroit. “The history that’s here, that tion in uncompensated care, facturing and assembly is often according to a report released means something,” he said. according to the report re- all about brawn, with clanging Monday by the Workforce Intelli- leased today. presses and expansive plant floor to the OEM’s just-in-time manu- gence Network. MHA Senior Vice President plans, Shinola/Detroit LLC’s watch facturing approach — albeit with The Detroit-based coalition, Peter Schonfeld attributed movement assembly in Detroit is much smaller tools and far fewer which works with eight local com- lower costs to quality and delicate, quiet and much like a employees. munity colleges, seven Michigan- safety initiatives, such as re- clean room with its temperature, “Made in Detroit and the histo- Works agencies and economic de- ducing catheter-associated humidity and dust controls. ry that’s here, that means some- velopment agencies, is urging urinary tract infection rates But Shinola is latching onto the thing,” said Heath Carr, CEO of employers and agencies to work and improving newborn same work ethic and creative en- Dallas-based Bedrock Manufactur- together to rectify the shortfall. health. See crainsdetroit.com ergy that built Detroit’s automo- ing Co., the privately held compa- In 2012, key growth employment for a full story on the report. tive industry for its mass produc- sectors struggled to fill jobs, ac- — Jay Greene tion of watch movements, down See Shinola, Page 25 See Skills gap, Page 21

Crain’s is seeking nominations for entrepreneurs Nominees will be judged for their innovation, problem-solving ability or sheer relentlessness. Additional categories include social entrepreneurs and entrepreneurial spirit. Deadline: March 18 | www.crainsdetroit.com/nominate NEWSPAPER 20130311-NEWS--0001-NAT-CCI-CD_-- 3/8/2013 5:14 PM Page 1

Inside Michigan

At West Michigan’s marinas, low water raises concerns, Page 9

In test ‘neighborhood,’ it’s about keeping up with the Jones’ energy efficiency, Page 11

Bonus State of funding Michigan is seeing more venture capital and private equity KEVIN FOWLER money. Read all about it in The New Michigan Deal, a 40-page special edition delivered with this issue. Shinola all wound up for online sales Report’s tip This Just In Watch, bike to tighten Report: Michigan hospitals show financial improvement company to skills gap: A report from the Michigan Health and Hospital Association points to improved financial add workers performance by Michigan Cooperation hospitals. BY SHERRI WELCH CRAIN’S DETROIT BUSINESS The state’s 134 community BY DUSTIN WALSH hospitals increased average In many ways, assembly of the CRAIN’S DETROIT BUSINESS operating margins in 2011 to tiny “engines,” or movements, 3.3 percent from 2.8 percent in that will power Shinola watches The Southeast Michigan jobs 2010 primarily by reducing couldn’t be more different than market is rebounding, but an ag- costs, improving quality and manufacturing automotive parts. ARA HOWRANI ing workforce and skills gap con- recording a 9 percent reduc- Where automotive parts manu- Bedrock Manufacturing Co. CEO Heath Carr says it matters that Shinola tinue to plague employers in need, watches and bicycles are assembled in Detroit. “The history that’s here, that tion in uncompensated care, facturing and assembly is often according to a report released means something,” he said. according to the report re- all about brawn, with clanging Monday by the Workforce Intelli- leased today. presses and expansive plant floor to the OEM’s just-in-time manu- gence Network. MHA Senior Vice President plans, Shinola/Detroit LLC’s watch facturing approach — albeit with The Detroit-based coalition, Peter Schonfeld attributed movement assembly in Detroit is much smaller tools and far fewer which works with eight local com- lower costs to quality and delicate, quiet and much like a employees. munity colleges, seven Michigan- safety initiatives, such as re- clean room with its temperature, “Made in Detroit and the histo- Works agencies and economic de- ducing catheter-associated humidity and dust controls. ry that’s here, that means some- velopment agencies, is urging urinary tract infection rates But Shinola is latching onto the thing,” said Heath Carr, CEO of employers and agencies to work and improving newborn same work ethic and creative en- Dallas-based Bedrock Manufactur- together to rectify the shortfall. health. See crainsdetroit.com ergy that built Detroit’s automo- ing Co., the privately held compa- In 2012, key growth employment for a full story on the report. tive industry for its mass produc- sectors struggled to fill jobs, ac- — Jay Greene tion of watch movements, down See Shinola, Page 25 See Skills gap, Page 21

1 Crain’s is seeking nominations for entrepreneurs Nominees will be judged for their innovation, problem-solving ability or sheer relentlessness. Additional categories include social entrepreneurs and entrepreneurial spirit. Deadline: March 18 | www.crainsdetroit.com/nominate NEWSPAPER 71486 02858 0 20130311-NEWS--0002-NAT-CCI-CD_-- 3/8/2013 4:11 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS March 11, 2013

MICHIGAN BRIEFS Lansing developer plans to revive Conn., and Pittsburgh ranked higher, while Detroit and Lansing historic building in Toledo Downtown Grand Rapids hungers for grocery stores were lower. A Lansing developer plans to put apartments and retail into a his- If you think Detroiters were happy in 2011 when Clements should know. In recent years, Trader MICH-CELLANEOUS toric but vacant building in down- Austin, Texas-based Whole Foods Market announced Joe’s hired him to find a prime location, he said. But town Toledo as part of a $20 million it was coming to Detroit — the Midtown store is ex- the company was never satisfied with its options. Ⅲ The Lansing-based Thomas M. investment, The Blade newspaper pected to open in June — the media in Grand Clements and local developers such as Jonathan Cooley Law School says that in Sep- reported last week. Rapids, to quote our reporting friends at MiBiz, Bradford, president and CEO of the Grand Rapids- tember it will start offering a mas- Kevin Prater said last week that “went bonkers” over a report that Whole Foods and based nonprofit Inner City Christian Federation, have ter’s degree in homeland security he hoped to close on a deal to buy California-based Trader Joe’s, along with the Swedish tried to convince potential greengrocers that down- and national security law. the Berdan Building by the end of department store chain H&M, would open stores in town Grand Rapids is a solid investment, despite Ⅲ MLive.com reported that the the week. His firm already has re- the Grand Rapids area. One problem, MiBiz noted: decades of flight to the suburbs. At one point, both Baltimore-based Sinclair Broadcast developed a nearby upscale apart- Trader Joe’s and Whole Foods say “they have no Meijer Inc. and Spartan Stores Inc. flirted with small Group has entered into a definitive ment building, the Toledo newspa- plans to enter the market anytime soon.” H&M did- concept ideas but eventually passed, Clements said. agreement to buy the broadcast as- per reported. Past development n’t respond to requests for comment. Bradford said grocery store companies are rooted sets of 18 television stations owned deals have failed. The five-story A few days before this excitement, MiBiz wrote in strong suburban operations and carry certain as- by Barrington Broadcasting Group Berdan Building, completed in about the difficulty in persuading grocers to locate sumptions that can’t be applied to urban life. “It’s LLC, including WEYI and WBSF in 1902, is listed on the National Regis- in downtown Grand Rapids. (Sound familiar, Detroi- not tough to understand why they aren’t here yet,” the Flint-Saginaw-Bay City-Mid- ter of Historic places. ters?) A store like Trader Joe’s likely would test the he said. “They need some education, and we need to land market. The Federal Communi- waters first in suburban Grand Rapids, said Earl go to them and stick their faces in the opportunity cations Commission must approve Clements, retail principal with Colliers International. and the reality.” the $370 million deal. Charter school’s curriculum would Ⅲ Kalamazoo-based Stryker Corp. include extracurricular activities MLive reported, citing a report by County were occupied last year. planned to buy $250 million of its Upon doing math, Calvin College common stock from public share- Guess you can add a fourth “R” to the college. Hope College in Hol- The hotels maintained an aver- finds $115M in long-term debt land, a school similar in size to age room rate of $92.94 a night, holders Friday, MLive.com report- this school: rink. MLive.com reported. ed last week that a charter school Calvin College in Grand Rapids Calvin, has $64.3 million in long- said Doug Small, CEO of the Experi- being proposed for the Kalamazoo- has $115 million in long-term debt term debt, MLive said. Former ence Grand Rapids visitors bureau. Find business news from Battle Creek area would cater to and, MLive.com reported, not President Gaylen Byker, who re- The room rate was higher than the around the state at crainsdetroit teenage elite athletes in hockey, soc- enough money to cover it. In a let- tired at the end of the 2011-12 acad- state average of $83.44 but lower .com/crainsmichiganbusiness. cer and figure skating. Legacy Acade- ter posted on Calvin’s website, emic year, could not be reached for than the national average of $106 Sign up for Crain's Michigan my would serve grades 7-12, accord- board of trustees Chairman Scott comment, MLive said. per night. Grand Rapids’ room Business e-newsletter at crains ing to a grant application filed with Spoelhof wrote that the board just rate was third highest among detroit.com/emailsignup. the Michigan Department of Education. became aware of the shortfall in Hotels doing better in GR, too cities in its peer group. Hartford, It would be the first such school recent months. in Michigan, modeled on a school Long-term debt at Calvin grew Crain’s reported in its last issue CORRECTION for tennis players in Las Vegas, as investments meant to pay it on the improving hotel market in said Heather Montei, spokes- down earned smaller-than-expect- Southeast Michigan. Last week, Ⅲ A brief on Page 1 of the March 4 issue had an incorrect spelling of De- woman for the school’s organizers. ed returns, and the college spent MLive.com reported similar news troit Building Authority Director Beth DunCombe’s last name. The earliest the school would open more money than it had on con- from Grand Rapids, where 60.6 is fall 2014, Montei said. struction projects and real estate, percent of the 7,000 rooms in Kent

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March 11, 2013 CRAIN’S DETROIT BUSINESS Page 3 Mortgage firm Health Care to grow into ex-Borders HQ Gold Star plans to hire hundreds

BY KIRK PINHO CRAIN’S DETROIT BUSINESS Dan Milstein, founder and CEO Eye surgeons refocus of Gold Star Mortgage Financial Group Corp., is moving his company to a after recession, Page 15 higher-profile address in Ann Arbor as the expanding mort- Company index gage company gets ready to These companies have significant mention in this hire hundreds of week’s Crain’s Detroit Business: employees. LAT PHOTOGRAPHIC Beaumont Health System ...... 17, 22 The move into “Things happen,” says Roger Penske of Penske Corp., “but we have a good management structure with our companies, Beitman Laser Eye Institute ...... 15 key leadership people who know the business and help build it. … I just hope I can be a part of that for a long time.” at least 70,000 Beyond Interactive ...... 13 square feet of Blue Cross Blue Shield of Michigan ...... 23 Milstein space at the for- Center for Automotive Research ...... 24 mer Borders Group Inc. headquar- CMS Energy ...... 22 ters in Ann Arbor is a big mile- Coburn-Kleinfeldt Eye Clinic ...... 16 stone for Milstein, an immigrant College for Creative Studies ...... 25 from Urkaine who founded Gold Compuware ...... 13 Next at the wheel Core Partners ...... 23 Star in 2000 at age 24. The company has grown signifi- Creative Breakthroughs ...... 22 cantly from its humble begin- Roger Penske would like to rule forever, Dawn Food Products ...... 13 nings, starting out of “a space that Detroit Metro Convention & Visitors Bureau ...... 12 was previously used as a closet” at Dow Building Solutions ...... 11 a AAA insurance building on Stadi- but who will eventually be the next Captain? Dow Chemical ...... 13 um Boulevard. FEV ...... 24 Milstein, 37, plans to expand his Flint Group ...... 13 the throng standing below a tele- elusive NASCAR title being workforce by up to 250 loan offi- BY BRANT JAMES General Motors ...... 13 CRAIN NEWS SERVICE vision stage at the start/finish Penske’s holy grail — the ques- cers, underwriters and other em- Gold Star Mortgage Financial Group ...... 3 line. tion must be asked: When is the ployees in the next 12 months as it Grand Valley State University ...... 10 Nearly three hours had passed One hour earlier, Penske had pursuit of victory enough? moves. HealthPlus of Michigan ...... 16 since Brad Keselowski captured completed his last post-race inter- As he pushed through a glass The Henry Ford ...... 12 See Gold Star, Page 23 team owner Roger Penske’s first view of the 2012 NASCAR season door, passed a mound of empty piz- Henry Ford Health System ...... 15 NASCAR Sprint Cup Series champi- with print media and choked za boxes and turned toward the IAC Group ...... 13 onship on Nov. 18, bringing the down a slice of congealing pizza second-floor hallway where anoth- IAV Automotive Engineering ...... 3 boss down from the spotter’s stand before another series of radio and er radio interview awaited, Penske Inteva Products ...... 13 at Homestead-Miami Speedway. television interviews. He then turned to one of his sons, Greg. John S. and James L. Knight Foundation ...... 5 Penske climbed the steps of his pit trudged back downstairs for more The latter had been within arm’s Kelly Services ...... 13 box, where he hugged and kissed sponsor and NASCAR commit- distance most of the night, from Livonia Outpatient Surgery Center ...... 16 his wife and lucky charm, Kathy. ments. the spotter’s stand to victory cir- Mac-Mold ...... 21 Two hours earlier, the reserved Does it take much to suggest cle. His father confided for the first Masco ...... 13 white-haired billionaire reveled that even a goal-oriented baron of time that he was finally tiring. Metis Sports Management ...... 7 as instigator, handing Keselow- industry would grow weary even- When it comes to Penske — COSTAR GROUP Michigan Health and Hospital Association ...... 1 ski fresh cans of sponsor brew tually? There are mountains to who turned 76 on Feb. 20 — Gold Star Mortgage Financial Group Michigan Outpatient Surgery Center ...... 16 Miller Lite to refill a monstrous climb, finish lines to cross, cham- “tired” is a relative term, but it is Corp. is moving into the former Michigan State University ...... 10, 12 pilsner glass from which he inter- pionships to win. And when you Borders Group Inc. headquarters in Michigan Travel Commission ...... 12 Ann Arbor. mittently imbibed or slung over have done it all — the long- See Penske, Page 24 MSX International ...... 13 PCA Bombo ...... 7 Penske ...... 3 Plante Moran ...... 22 Ross Mortgage ...... 23 As standards tighten for fuel, emissions, Shinola/Detroit ...... 1, 25 Thetford ...... 13 Tower Marina ...... 9 Wayne State University ...... 21 growing IAV takes answers for test drive Whitehall Landing ...... 9 Workforce Intelligence Network ...... 1 BY DUSTIN WALSH technology is testing the emissions in Ann Arbor in 1998 before un- CRAIN’S DETROIT BUSINESS and fuel efficiency of the diesel en- veiling the development center in gine for an agricultural machine Northville in 2008, with a total cur- Department index The groan of a combine engine manufacturer. In the next, identi- rent investment of $33 million. slows inside a climate-controlled cal room, it’s a turbo-boosted en- The U.S. subsidiary grew state- BANKRUPTCIES ...... 4 test chamber the size of a dorm gine for an automaker. And so on. side on the backs of its German BUSINESS DIARY ...... 19 room, and the faint smell of diesel As manufacturers, automakers owners. Volkswagen AG owns 50 CALENDAR ...... 18 fuel remains as more than $1 mil- and suppliers work toward meet- percent of IAV, Continental AG CAPITOL BRIEFINGS...... 4 lion worth of equipment runs ana- ing stricter fuel and emissions holds 20 percent and Schaeffler CLASSIFIED ADS ...... 21 lytical tests on the performance of standards in the U.S., IAV is creat- Technologies AG & Co. KG 10 percent. JOB FRONT ...... 20 the next-generation engine. ing and testing some of the indus- The less than 5-year-old U.S. arm Here in this room, one of four at COURTESY OF IAV AUTOMOTIVE ENGINEERING INC. KEITH CRAIN...... 6 try’s best ideas — and it shows on of Germany’s IAV GmbH quadrupled IAV President Andy Ridgway said the Northville Township-based IAV Au- the books. company is growing in response to LETTERS...... 6 tomotive Engineering Inc., the latest IAV opened a small sales office See IAV, Page 24 increased government regulations. MARY KRAMER ...... 9 OPINION ...... 6 Crain’s Michigan Business Business events OTHER VOICES ...... 6 THIS WEEK @ Sign up for the roundup of statewide During any given week, useful business events are PEOPLE ...... 20 news delivered to email inboxes every held throughout the region. See what’s coming up at WWW.CRAINSDETROIT.COM Wednesday: crainsdetroit.com/getemail. crainsdetroit.com/section/events. RUMBLINGS ...... 26 WEEK ON THE WEB ...... 26 20130311-NEWS--0004-NAT-CCI-CD_-- 3/8/2013 4:11 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS March 11, 2013 Roads funding down road from May

The May 7 ballot will tween the two, and some was when legislative leaders kept not include any request Republicans in the Sen- members in the Capitol until to raise taxes or change Capitol ate are willing to go about 5 a.m. before leaving for the the way they are dis- Briefings there, but the House Re- Fourth of July break. bursed to pay for in- publican caucus made If they did that, lawmakers creased transportation that law’s repeal part of could still choose to give an option funding, but it doesn’t its action plan for this to voters as well in a special elec- mean it still couldn’t legislative session. tion. However, the cost for a spe- happen this year. Sen. Roger Kahn, R- cial election could be as much as Last Thursday, the Saginaw, chair of the $10 million, Kahn said. Senate adjourned with- Senate Appropriations It would have been less expen- out taking a vote to re- Committee, and the In- sive for the state if it had put quest such a plan be Chris Gautz frastructure Moderniza- something on the May 7 ballot, be- placed on the May ballot, tion Committee, which is cause many cities and counties al- thereby missing the 60-day dead- where any transportation funding ready have elections planned that line to do so. bills would go, said he wasn’t sur- day. The state would have just Word was there was no agree- prised to see the Senate miss its had to reimburse those jurisdic- ment on exactly what to ask the self-imposed deadline. tions that would have had to have voters for, or how much, and how “It was a very ambitious ask to a vote solely for the purpose of the that would fit into or be a separate get it done in that time frame to vote on transportation funding. option for voters to consider how start with,” Kahn said. So now any decision to put best to fund the roads. He didn’t broadcast that belief something on the ballot before the Of course, there’s also the pesky because he wanted to try to next statewide election in August task of getting bipartisan support accomplish it, the same way the 2014 will cost the state money it for such a request, as it takes a past two years the Legislature has otherwise hadn’t planned on two-thirds vote in both chambers said it would get the state budget spending. to put it before the voters. done by June 1, even though it House Speaker Jase Bolger, R- Even before last year’s signing technically has until the end of Marshall, does not have a prefer- of the right-to-work law, getting September. ence for either going to the ballot two-thirds of either chamber to With the May 7 ballot question in a special election or having agree on anything significant was plan now off the table, Kahn said the Legislature vote on a final a tough task, and now it’s just even he likes the idea that Senate Ma- plan, his press secretary Ari Adler more so — if not impossible. jority Leader Randy Richardville, said. Also, I’m told Democrats were R-Monroe, has to get it done by the “He has not committed to nor re- pushing for a firm guarantee that Fourth of July. buffed any idea. He is listening to if they were to go along with a plan “It would be patriotic to have all ideas right now,” Adler said. for increased transportation fund- our roads start to be fixed on “He’s trying to make sure that ing that any vote or push to repeal July Fourth,” he said with a everybody keeps talking and keeps the state’s prevailing wage law chuckle. coming up with ideas. He’s afraid would be taken off the table. If history is any guide, the last that if we start saying ‘yes’ or ‘no’ They want clear linkage be- time the state raised the gas tax to certain things, then people will stop doing that.” What many in the Legislature seem to have said “no” to, though, is Gov. Rick Snyder’s plan to raise the 19 cent gasoline tax and 15 cent diesel tax to a flat 33 cents per gal- lon. When the spark of Snyder spokesman Kurt Weiss said in an email that there are dif- imagination meets up with ferent ideas and plans being re- viewed right now. the talent to harness its The administration is still confident the right solution will be found for road funding. potential, the possibilities “Inaction is not an option, and everyone understands that,” are endless. Weiss said. There does remain confidence in the halls of the Capitol that something will get done this year. The move, or lack thereof, last week by the Senate should not be seen as a step back, “just one more step along the way,” Adler said. Chris Gautz: (517) 403-4403, [email protected]. Twitter: @chrisgautz

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March 11, 2013 CRAIN’S DETROIT BUSINESS Page 5 Knight Foundation contest looks for creative public art ideas

BY SHERRI WELCH tion or company in the area, and Miami five years ago and Philadel- ty that was in its cultural adoles- to bring the challenge to Detroit. CRAIN’S DETROIT BUSINESS there’s no limit on how many any phia three years ago, Knight has in- cence up until recently ... (and) in “Detroit feels to me like it’s the single person or organization can vested $22.5 million in 180 projects. Philly, while it was very culturally Berlin of America when it comes to Local artists and art supporters submit. But they have to be about Typically, the foundation gets mature, it didn’t have as much in the arts,” Scholl said. “Every day have a big chance to pitch creative art and take place in Detroit or about 1,200 ideas per year per city the way of grass-roots activity,” there is someone coming to Detroit Detroit public art ideas. benefit the city. And projects will and picks an undetermined num- said Dennis Scholl, vice presi- to work on a cultural project.” And the more creative the idea, be required to find matching mon- ber of winners from a finalist pool dent/arts Knight Foundation. Sherri Welch: (313) 446-1694, the better. ey to implement the idea if it wins. of 30-70. Detroit has a mix of both, and [email protected]. Twitter: Organizers of a program funded Since launching the contest in “In Miami, you had a communi- that’s what spurred the foundation @sherriwelch by the John S. and James L. Knight Foundation say people should think big. Thought starters: a poetry slam on the Detroit River, a new Mexican festival in Southwest De- 60$//2)),&(Ř+20(2)),&( troit, the return of vintage movies to a historic Detroit theater, or Michigan’s Best Selection For even something off the wall like Small Professional Ofﬁce or Home Ofﬁce images of mud puppies dancing on  Free Design Assistance larger-than-life screens.  Customization - Sizes & Finishes The Miami-based foundation  will open nominations for the Professional Installation three-year, $9 million Knight Arts  Contemporary or Traditional Challenge Detroit on March 25. The program will fund what it deems the best arts ideas from De- troit, with a little vetting help from a group of about 10 yet-to-be-picked local “readers.” Proposals of 150 words or less must be submitted via knightarts.org, which also lists the winning ideas in the foundation’s other two arts challenge cities — Miami and Philadel- phia — and will have information FEATURING on meetings planned for Detroit to explain about the program. Nominations for the Detroit challenge close April 22; the win- 6287+),(/'ō752< 129,ō/$.(6,'( ners will be announced Oct. 14. *5$1'5$3,'6 Ideas can come from any indi- www.gormans.com jesper_B vidual, group, cultural organiza-

How a man who never went to medical school is changing health care in America.

He spent his career as an entrepreneur and global consultant in the automotive industry. And then he decided to take that experience and generously share it with us at Beaumont. Serving as a trustee and Board member of our health system for 19 years, Steve Howard’s insight and strategic vision have helped us direct the future. As Board Chair, he embraced a partnership in which Beaumont is the only Michigan health system to join the national High Value Healthcare Collaborative – an organization that is designing a model of high quality and value-based care for the country. Through his leadership, Steve has supported philanthropy that allows us to attract renowned physicians and acquire leading edge technology. And he has been a champion for patient safety and superior outcomes. As a result, Beaumont continues to be rated the most preferred health care provider in the region. Anticipating the challenges of health reform, Steve’s forward thinking has led an initiative that will create an historic merger between Beaumont and Henry Ford health systems. This new organization will be a national model for health care. With a tireless commitment of time, talent and energy, Steve has beneﬁted patients at Beaumont – and around the country – making health care better, and more accessible, for us all. Steve Howard has earned Modern Healthcare’s 2013 Trustee of the Year award. And he reminds us that it doesn’t take a medical degree to change health care. All it takes is a heart.

Steve Howard, chair, Board of Directors, Beaumont Health System, Modern Healthcare’s 2013 Trustee of the Year 20130311-NEWS--0006-NAT-CCI-CD_-- 3/8/2013 4:09 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS March 11, 2013 OPINION OTHER VOICES No public promises Shine light on government It’s your government. ment services. more public access and against vi- And it’s your money Some good public ser- olations of the state Freedom of In- that’s paying for it. vants provide that infor- formation Act and the Open Meet- You deserve to know mation readily. But often ings Act. The coalition will review for private debt how that money is being the search for answers is requests for help and can nomi- spent and if waste, fraud, an uphill battle, because nate them for funding from the Na- he opening of “Oz the Great and Powerful” last week corruption, conflicts of in- other government officials tional Freedom of Information terest or just bad decision- prefer to operate in pri- Coalition. has made many in Michigan nostalgic for the making are getting in the vate so they can do what How is Michigan doing when it T Granholm-era film credits that led to numerous movie way of the results you ex- they want without as comes to public access to informa- star sightings around the area. pect. much oversight. Some- tion? But let’s take a look behind the curtain. Customers every day Charles Hill times it’s because they One measure is the failing grade The movie was filmed in Pontiac at what is now Michigan demand accountability from the have something to hide, some- Michigan received in a State In- people who remodel their houses, times because they think it’s more tegrity Investigation last year by Motion Picture Studios, run by Linden Nelson and backed by serve them food, fix their cars or efficient or easier to operate in se- the Center for Public Integrity, Al Taubman and John Rakolta, among others. The project was sell them a TV or a computer. cret. And they have government Global Integrity and Public Radio vastly ambitious — and vast. The cavernous building was de- Citizens should demand the resources to use, while news orga- International. signed to be able to accommodate all facets of filmmaking, and same accountability — and more nizations and citizens face shrink- Michigan’s overall ranking was director Sam Raimi described it as “the best I’ve ever seen.” — of their government. ing budgets. 44th of 50 states. Individual catego- Are children being educated in a Now, journalists and citizens ry scores included grades of “F” But when Gov. Rick Snyder took office and reduced the way that helps them succeed in life have a new ally: the Michigan for executive accountability, judi- amount of subsidies available, the big-budget projects dried for their own good and the good of Coalition for Open Government. cial accountability, state civil ser- up, and so did the business model for the studio. their fellow citizens? Are the ac- MiCOG is being launched official- vice management, state pension In the end, taxpayers ended up paying $40 million in film cused treated fairly by police and ly this week during Sunshine fund management, state insurance subsidies for the movie, and studio owners started defaulting judges? Are people getting the pub- Week, which is observed each year commissions, political financing, lic safety and other services they to promote open government and legislative accountability, lobby- on bonds sold to help pay for the project, leaving the State of should? Are contracts being freedom of information. ing disclosure, ethics enforcement Michigan Retirement System, which had inexplicably guaran- awarded to those best equipped to MiCOG’s mission is to promote agencies and redistricting. teed them, on the hook for the bill. provide a good service at a reason- and protect transparency and ac- Remember: It’s your govern- The state pension fund is just one example. The city of able price, or to a company that countability in governments at the ment and you deserve to know Allen Park also was left holding the bag after selling $31 mil- costs too much and delivers too lit- local, state and federal levels. Its what it is doing. For more informa- tle but was chosen for improper efforts will include creating education, see miopengov.org. lion in bonds for a studio project that never materialized. The reasons? Are people who truly tional programs and information Charles Hill is former Michigan debt was a factor leading to the city’s current oversight by an need help getting that help? to help guide citizens interested in Associated Press bureau chief and emergency manager. Journalists work hard to find open government. sits on the MiCOG board of direc- We think it’s good for Michigan to keep a foothold in the answers to those questions and And the coalition also can help tors. Crain’s Executive Editor film industry, but we agree with capping the amount of incen- many more. So do parents. So do get funding for lawsuits by citizens Cindy Goodaker also is a member of people who use and pay for govern- and the media who are fighting for the MiCOG board. tives available on an annual basis — $50 million for fiscal 2013 — and also believe that there should be ongoing cost/benefit evaluation of them. And one thing is for sure: Public pension funds and other bodies should not be in the business of guaranteeing the debt LETTERS of private investors, who should be willing to assume that themselves. Keeping us from hacker harm Center takes wrong direction Editor: Accordingly, I find disconcert- Michigan have not persuaded Internet-related scams and threats have become so common- Over the past two years, resi- ing the recent article in Crain’s Baron to lure those entities to place, it seems we’ve almost become numb to them — even when dents have been told by various that Center for Automotive Re- Michigan. large networks of private information have been breached. leaders that if Michigan was made search President Jay Baron is To say the competition is with Not so the state of Michigan, which has been working with a right-to-work state, onerous busi- working to attract overseas au- Mexico and not the North, mean- ness taxes were repealed and the tomakers and suppliers to South- ing Michigan, is cause for concern. Oakland County, a group of large companies and others to cre- infrastructure were repaired, no- ern states with the suggestion that Baron is also quoted saying the ate an emergency response plan. tably roads and bridges, the state it may include engineering and de- center is not promoting existing As Lansing correspondent Chris Gautz reports on Page 1, and Southeast Michigan would be sign divisions as well (“Local cen- businesses to move South, but he the group has been considering questions such as what the re- able to attract and retain potential ter wants more auto jobs for does not indicate that it would dis- sponse should be in the event of a large breach of security for investors because the climate for South; MEDC not happy,” March courage such activity. such enterprising spirits would be 4). It would appear that all of the ef- Jim Amar the state, a region or multiple large companies. more attractive and competitive. forts done to attract businesses to Plymouth Township The details of the plan won’t be available until later this spring, but this is a laudable example of public-private collabo- Send your letters: Crain’s Detroit Business will consider for publication all signed letters to the editor that do not ration for the benefit of all the state’s citizens. defame individuals or organizations. Letters may be edited for length and clarity. Email [email protected]

KEITH CRAIN: When does the sky stop falling? It’s been more than a week since than money spent by in- ey on. also haven’t heard anyone talk some sort of amendment that re- the deadly sequester began. dividuals — or shall we I guess I just don’t about the interest payments on quires a balanced budget — like And although there have been call them “taxpayers.” agree that the govern- our debt. We owe $16 trillion, an our local and state budgets have. A many predictions that the end of When taxpayers offer ment has a better idea amount I cannot even compre- very sensible and necessary rule. the world was coming, we haven’t up taxes, they give the of how to spend my hend. If we don’t do anything Michigan seems blessed to have seen any severe adjustments yet. money to the govern- money than I do. about our debt, my guess is that an a number of jurisdictions with fi- I am sure that when you take bil- ment to spend. No car, The really big entitle- increasing amount of taxes we pay nancial problems, most notably lions of dollars from government no television or no ments aren’t affected by will go to the Chinese and every- the city of Detroit and Wayne programs, there will be lots of dis- house. sequestration. body else who has bought our debt. County. location from industries that are The sky-is-falling ar- But the federal gov- But I am glad to know that every Luckily, the state has righted its impacted, especially military con- gument seems to sug- ernment is still making penny of every government pro- financial ship, and now our gover- tractors. Some of those cuts may be gest that whatever the $85 billion in cuts this gram, whether it’s city, county, nor is attempting to do the same painful in Southeastern Michigan. government is spending fiscal year. We have to state or federal, is so wisely spent with Detroit, a formidable task. But I still haven’t figured out our taxes on must be more impor- make big cuts if we ever want to that there is no way anyone can Too bad no one seems interested why money spent by government tant to our economy than whatev- get close to a spending plan that re- ever cut a nickel. in righting the Titanic in Washing- is any different to the economy er we might be spending our mon- flects what we take in as revenue. I Someday, perhaps, we’ll have ton. 20130311-NEWS--0007-NAT-CCI-CD_-- 3/8/2013 4:13 PM Page 1

March 11, 2013 CRAIN’S DETROIT BUSINESS Page 7 Trio climbs into ring of sports management

BY BILL SHEA cause of the need to spend money your percentage, when he first CRAIN’S DETROIT BUSINESS on athletes while waiting years to signs. You don’t get paid again un- see a return on that investment til he goes to arbitration. That’s Detroit junior middleweight box- and because of the rise of mega- three years if he’s in the majors,” er Tony Harrison — the last fighter agencies in the past decade. he said. “You only get paid when personally trained by Emanuel “It’s getting more difficult to get he gets paid (a new contract).” Steward at Kronk Gym before Stew- into more than ever before,” he In the meantime, agents have to ard died in 2012 — improved his ca- said. “You have to compete with spend money on travel and also reer record to 12-0 with a first-round the big dogs. These guys have so provide gear such as custom bats, knockout Thursday night at Mo- much money and capital behind gloves, shirts, etc. Agents are lim- torCity Casino Hotel’s Sound Board. them. You’re not generating fees, ited to spending $1,500 per year per In the audience watching Harri- so you need capital.” player by Major League Baseball son take down West Michigan’s Agents specialize, he said, and Players Association rules. Thomas Amarro was Grosse many agents are lawyers who con- “I’m laying out $40,000 to $50,000 Pointe attorney Peter Alle. tinue to practice law until the on equipment in spring training,” Harrison is Alle’s first client as an sports agency can earn real money Kirschenbaum said. “It’s a strug- agent with PCA Bombo LLC, a new AL BURGESS — which can take many years. gle. It takes at least five to 10 years Grosse Pointe attorney Peter Alle greets boxer Tony Harrison after Harrison’s sports management firm he runs. “You’re advising a high school (to make money), depending on the knockout win in a match Thursday at MotorCity Casino Hotel in Detroit. Alle is a Partners are lifelong friend KC kid. You get 5 percent, or whatever sport.” partner in new sports management firm PCA Bombo LLC. Crain — of the Crain Communications Inc. family that owns Crain’s Detroit Business — and sports filmmaker Bob Potter. Alle said the company’s goal is simple: “We’re looking to manage FREE WEBINAR SERIES: APRIL – AUGUST 2013 athletes.” Their plan is to seek clients such as boxers, NASCAR drivers and players in the four major leagues. Alle said he’s licensed to manage Harrison with Michigan’s Un- About the Series armed Combat Commission, which Look forward to 2014 and nobody knows what health care will regulates boxing and mixed mar- look like, but everyone knows things will be different. That’s the tial arts fighting in the state. The player unions for the pro starting point for Health Facts 2014, a project to provide facts sports leagues typically regulate for employers and employees as they make near-term health and license agents, and each have care decisions. their own requirements, Alle said, adding that he’s studying to earn With the combined resources of the Greater Detroit Area Health certification for those leagues. Presented by: Council and Crain’s Detroit Business, this series will present Alle is using space at his father’s useful and informative webinars throughout the year aimed at Grosse Pointe firm, Law Offices of In Partnership with: ™ employers, employees and providers. James Alle, where he works full time as an attorney. Providing the company name is Bob Potter, CEO and managing partner of New York City filmmak- ers Bombo Sports & Entertainment. PCA stands for Potter, Crain To and Alle. All three are investing in the agency, with Crain bringing Exchange About the Webinar his business experience and Potter Receive strategic advice on whether to offer a health plan or to ask bringing his sports industry con- or employees to use the insurance exchange. This webinar is designed nections, Alle said. Notto “I just love the idea of having a for employers considering both options. fighter from Detroit that we can help Exchange create a Detroit boxing brand again, that we lost with the end of Kronk Discover: and Emanuel Steward,” Crain said. Alle and Crain met Potter last Tuesday, April 2 Insight from consultants specializing in health plan design year while he was working on a documentary about Detroit, and 12 – 1P.M. The legal issues: What the Affordable Care Act requires he called Crain in search of a local boxer to include. The HR angle: Advice from a human resources perspective Crain connected Potter to Alle, Reserve your seat: who boxes as a hobby at The World’s crainsdetroit.com/events Best Boxing Gym and has connections to the local fight scene. The three men hit it off, he said, and eventually Potter hatched the idea to work together on managing a boxer. “All of us have a love for Detroit, and we’re all big sports fans,” Alle said. Bombo has done documentaries on mixed martial arts fighting, the Detroit Lions, Philadelphia Eagles, Boston Red Sox, Los Angeles Dodgers, the National Basketball As- sociation and the Manchester United, Chelsea and Liverpool soccer teams of the English Premier League. If and when PCA Bombo pays off as an investment is unknown. “We haven’t developed expectations yet (on revenue). It’s hard to gauge at this stage,” Alle said. Agent Storm Kirschenbaum is owner and president of Birming- ham-based Metis Sports Manage- ment LLC, which represents 70 pro baseball players. He said the sports agent universe is a tough one be- DBpageAD_DBpageAD.qxd 3/7/2013 9:17 AM Page 1 20130311-NEWS--0009,0010-NAT-CCI-CD_-- 3/8/2013 10:58 AM Page 1

March 11, 2013 CRAIN’S DETROIT BUSINESS Page 9

PUBLISHER’S NOTEBOOK

Contact Mary Kramer at mkramer @crain.com. CRAIN’S MICHIGAN BUSINESS Mary Kramer Snyder wants earful from biz The stock market is soaring; the Michigan-based auto industry is roaring. But the state’s unemployment rate remains stubbornly at nearly 9 percent. At the same time, many employers complain about not finding enough people to fill specific jobs, including engineers, machinists and technical talent. What gives? That’s what Gov. Rick Snyder hopes to find out March 18-19 when he convenes an economic summit on talent at Cobo Center. The invitation- only event is drawing CEOs, business owners, human resource directors, higher education officials and workforce development leaders. But it’s employers looking for talent whom the governor wants to hear from most in order to shape a message to workforce training and higher education organizations this spring. Snyder will give a kickoff address, followed by a state talent profile by economist Paul Traub from Detroit’s branch of the Federal Reserve Bank of Chicago. Attendees will break out by region and industry to identify challenges and opportunities to meet the talent crunch. T.J. HAMILTON Already, the event has drawn an R.J. Peterson, president of Tower Marina in Douglas and Saugatuck Yacht Services in Saugatuck, estimates that pleasure boating pumps $15 million to impressive list of executives from $20 million into the Saugatuck-Douglas economy each year — and with the right support could bring in much more. auto, health care, law and accounting firms and technology/IT. And there is room for a few more. If you are an employer concerned about filling current or future jobs, go to michiganadvantage.org/governors- economic-summit to request an invitation. Meanwhile, despite the jobless Lake effect rate, a lot of things are going in the right direction in Michigan. Our supplement in this week’s issue, “The New Michigan Deal,” Marina owners face low water levels, high anxiety as boating season nears outlines the surge in investments in state companies from private equity BY MATTHEW GRYCZAN population of 2,700. firms and venture capital funds. This CRAIN’S MICHIGAN BUSINESS If recreational boaters don’t use the 50 special feature — a collaboration municipal slips and the 950 other private between Crain’s and Grand Rapids- The blue water hen the days grow longer and the slips on White Lake, local enterprises such based MiBiz, is being distributed “ weather warms, year-round residents outside Michigan to subscribers of economy is threatened by as the Maple Tree Inn and Harbor View Grille W of the White Lake area north of would land in the doldrums. other Crain publications. Muskegon like to joke that they can’t these lower water levels. ... Tens of thousands of people across So how far have we come? make left-hand turns on their streets any- Michigan are grappling with how they will Reporter Tom Henderson asks more. This is really the be affected by low water levels on the Snyder that question on Page 6 of the Tourists from Chicago and other areas Great Lakes. Nowhere are the conversa- supplement. Before running for flood the roads of the adjacent cities of new normal. tions probably more intense than in com- governor, Snyder was a venture Whitehall and Montague like a summer ” munities along the eastern shore of Lake capitalist. When he launched his first monsoon, ready to recreate on the 6-mile- Alan Steinman, Michigan. Among them, owners of private fund in 1997, he said, only two or Annis Water Resources Institute three funds were active in the state. long lake that has a channel leading to marinas appear to be the most anxious. Today, nearly 30 have Michigan Lake Michigan and adven- Business owners, government officials offices, and nearly 100 VC funds ture. Many of the visiting ed keeping statistics nearly a century ago. and recreational boaters are trying to fig- invest in Michigan companies. powerboaters and sailors Treated as one body of water by the ure out how to react to the low drafts in I have a bias, but what struck me have come to the area for Army Corps, Lake Michigan-Huron ended marinas before the season launches rough- most about Henderson’s interview years, first as children and February at 1 inch above the previous ly in late April, running through mid- with Snyder is to learn that the plans now as parents with kids of record low set in 1964. The “most probable October. for the Renaissance Venture Capital their own. line of the latest forecast shows Michigan- “If a business has to spend $200,000 to Fund — a successful “fund of funds,” This year, Whitehall City Huron remaining 2 to 7 inches above dredge this spring so customers can all where money from leading Manager Scott Huebler record lows through August,” the agency boat, and that comes out to $1,000 a slip, corporations is in turn invested in hopes the area will offer reported last week. would the customers pay that?” said Dan other venture capital firms to grow smooth sailing instead of “If nothing changed, this would be a se- Erwin, general manager of Whitehall Land- Huebler state businesses — was announced “mud bog races,” a result of rious problem for our marina — and our ing, a private marina of 220 slips on White by Snyder during a cruise on the the lowest water level ever recorded on downtown a block away,” said Huebler, Lake. Detroit River sponsored by Crain’s. lakes Michigan and Huron in January who estimated that Whitehall doubles in since the U.S. Army Corps of Engineers start- size during the summer from its normal See Marinas, Page 10 20130311-NEWS--0009,0010-NAT-CCI-CD_-- 3/8/2013 10:58 AM Page 2

Page 10 CRAIN’S DETROIT BUSINESS March 11, 2013 Marinas: Lower water levels prompt worry for boating season ■ From Page 9 “Human nature tells me the vast No one knows yet what lake lev- dredging funds to cope with this a result, to a great extent, of silt directly supported an additional 44 majority would say: ‘No, I think I’ll els will be when the season opens, year’s low lake levels, as are 48 oth- from the Jordan River that has jobs from $2.6 million in direct take my boat and go to the other but it’s clear to Erwin that he will be er public harbors and marinas. been made abundantly visible by sales, $834,000 in wages and salaries side of the lake or go down to in trouble if the water in White Lake In Erwin’s case, private marinas low lake levels. and $1.5 million in value added. Muskegon this summer because isn’t high enough to put back in the will be left to fend for themselves But the city of East Jordan is Peterson said his marina is in they don’t need water the sailboats with deep drafts to offer usable slips and access to lucky. It’s one of five municipali- good shape for the upcoming boat- to dredge and that are stored on his premises. channels already dredged with fed- ties on Charlevoix Harbor, a feder- ing season because it performed their rates won’t “A better scenario may be that eral or state money. ally designated deep-draft harbor about $1 million worth of dredg- include that we can get them in the water and Lawmakers and city officials rec- and home to a U.S. Coast Guard sta- ing last spring to allow the S.S. $1,000. When you float them down the aisle, but per- ognize that most pleasure boaters tion. Locals know that any type of Keewatin to leave its decades-old are deep enough haps the slips are too shallow for are served by private marinas, so recreational boat will be able to location there for a new home at again to accom- them,” he said. Then it would just coastal communities can be hurt navigate through the harbor to Port McNicoll, Ontario. The mari- modate me, then be a matter of matching boats with economically if the businesses can’t reach Lake Michigan this summer na operates its own dredges for its I’ll look at that.’” appropriate slips, with some dredg- open. The 29 public harbors and — if the boat can get out of its slip. slips. It’s not a hy- ing as needed. harbors of refuge on Lake Michigan East Jordan is lucky there, too. Dredging the mouths of harbors pothetical prob- that are listed on the DNR’s website The municipal marina that Can- is “something you have to put up Erwin lem for Erwin. Not too low for boats to go reported having a total of 1,386 slips, non operates will be receiving with every year” because the About 60 percent of his customers of which half are reserved for tran- $420,000 in emergency funds from wave action on Lake Michigan are sailors versus powerboaters, To keep things in perspective, a sient boaters. Private marinas in the state to dredge the harbor 6 feet pushes sand to those locations, Pe- and sailboats need drafts any- flotilla of pleasure craft will be the Saugatuck-Douglas area alone deep and create a disposal site for terson said. But the silt that most where from 4½ to 7 feet below the skimming along on Lake Michigan offer well over 600 slips. the silt. marinas deal with comes up- water line to navigate — compared this summer even with record-low State Sen. Goeff Hansen, R-Hart, Private marinas, which can stream from the river itself and with powerboats, which may need levels, thanks to dredging of feder- whose 34th District includes White- range from hundreds of slips to a can be mitigated. only 2 to 3½ feet of draft. al navigational channels by the hall, Montague and other coastal simple fuel dock and fix-it store That’s where the state can help The water in White Lake reced- Army Corps. In addition, the state communities, told attendees of the with a few slips, may need to private marinas — by coordinat- ed so much even late last fall that Senate last week authorized an Small Harbor Coalition, which met re- dredge “on their own dime,” Can- ing the work between the DNR and some sailboats were starting to tip emergency $21 million appropria- cently in Lansing, that he supports non said. “Some are going to be DEQ so underwater structures can because the bottoms of their keels tion to keep public harbors, mari- legislation to offer state-sponsored able to get the dredging done, but be built to reduce siltation, Peter- were resting on sand. nas and boat launches open. The low-interest loans to private mari- there are going to be many that son said. “Some customers who didn’t measure now awaits action in the nas and provide more tools for local just don’t have the capabilities. Experts say other actions may know where some sandbars were state House. financing of dredging. Representa- “We are lucky to be city-owned need to be taken if the record-low in the aisle (between the boat slips The Michigan Department of Natural tives of the DNR and Michigan De- and have the support of our gener- lake levels of Michigan and Huron and docks) got stuck, and we had Resources owns or sponsors 81 mari- partment of Environmental Quality told al fund. If I didn’t have that, our become the new norm. to send people to go out to the bow nas, many of which are “grant in the same group that they have pro- marina wouldn’t be able to stay “The blue water economy is pulpit and bounce up and down aid” facilities such as the White Lake posed changes on procedures to open.” threatened by these lower water until they freed the boat,” Erwin Municipal Marina that are owned and speed permitting and make dredg- The East Jordan Municipal Harbor levels,” said Alan Steinman, direc- said. “It wasn’t so bad that tricks operated by local units of governing less costly. used to be entirely self-sufficient tor of the Annis Water Resources Insti- like that wouldn’t work. But if it’s ment but receive DNR funding. The By luck and design, towns and for maintaining its harbor, but tute at Grand Valley State University. as bad as we expect this coming Whitehall harbor and White Lake cities that dot the eastern shore of that changed in 2008 when the city “The water levels probably will spring, that sort of thing isn’t go- Municipal Marina are slated to get Lake Michigan have encouraged for the first time needed to use gen- come back — whether they come ing to be enough to work.” $182,000 of the state emergency growth of the “blue water econo- eral funds for dredging. back to the long-term mean is an- my,” tied to pleasure boating as an other question. This is really the anchor for their economic lifeblood. new normal with regard to adapta- Marinas.com, a comprehensive list- Marinas: An economic anchor tion to changes associated with cli- ing of public and private marinas The impact of private marinas mate change.” nationwide, indicates that more on a local economy probably isn’t Coastal communities that rely than 130 of the state’s 409 marinas more obvious than in the case of on the blue water economy may have access to Lake Michigan. Tower Marina in Douglas and have to rethink what this means to Many of the marinas have grown Saugatuck Yacht Services in Saug- property values, new develop- up around natural harbors at the atuck, which have about 500 deep- ments, the frequency and funding mouths of rivers that empty into water slips, heated and cold-water of dredging, where docks are situ- Lake Michigan. storage facilities and a year-round ated and new recreational-boat service and parts department on technology, Peterson and Stein- their premises. The Army Corps man said. Boating leaves $636 million in wake considers Saugatuck a harbor of “Many of Michigan’s marinas An executive summary compiled refuge, meaning a designated spot and even access sites were built in by the DNR about six years ago said for boats caught in bad weather on locations where they are particu- recreational boating in Michigan Lake Michigan to moor until condi- larly vulnerable to swings in water generates about 24,000 jobs and re- tions improve. levels,” said Ed Mahoney, director sults in $636 million in income to R.J. Peterson, a special consul- of the Recreational Marine Research business owners. But many com- tant to the Michigan Waterways Com- Center at Michigan State University. munities with harbors have at best mission and president of Tower Ma- “The problem in Michigan contin- only anecdotal evidence of the eco- rina and Saugatuck Yacht Services, ues to be government is getting out nomic impact of recreational boat- estimated that pleasure boating of the business of dredging recre- Working Capital In Action ing. The impact from commercial pumps about $15 million to $20 mil- ational harbors, and boating bud- use of harbors is easier to gauge be- lion annually into the Saugatuck- gets did not anticipate having to cause bulk carriers of coal, lime- Douglas economy. But that figure spend so much on dredging so of- We provide businesses accounts receivable and inventory ﬁnancing stone and other materials pay ad could rise to more than $50 million ten.” valorem tax on the cargo they carry needed to address growth opportunities and increase cash ﬂow. if the industry were encouraged to Until a sustainable statewide to usually a few large companies in grow further. plan is developed, all eyes are on Our experienced staff and network resources connect an area. An in-depth case study done on the weatherglass. Like farmers, entrepreneurs with the tools they need to succeed and expand. It’s hard to tell whether the cus- Tower Marina and Saugatuck marina managers can opine for tomer of a local restaurant is a Yacht Services in 2004 by the Army hours about where Great Lakes recreational boater for the season Corps gives perhaps the best sense levels are headed. Need Cash to Grow? We Have the Solution. or a passing tourist, said Tom Can- of what a local marina can add to a “I think that the water levels are non, parks and recreation director community. During that season, going to go up dramatically based for the northern Michigan city of boaters spent $2.85 million on lodg- on the precipitation,” said Peter- East Jordan, on the south branch of ing, restaurants, groceries, boat son, the Saugatuck marina opera- Lake Charlevoix. “But we are pret- fuel, marine supplies and shopping tor. “I’m getting that from what I ty confident that over 70 percent of and entertainment. The bulk of read in the papers.” the summer revenues of many area that money was spent by those who In East Jordan, Cannon offered businesses come from boating — owned boats ranging from 21 to 40 another forecast: “There are some and half their income comes in the feet in length. people who think that the lake lev- summer. For Allegan County, that meant els are going to come right back “They generally said that if we direct economic impact of $1.8 mil- up, but I don’t see that. It might go couldn’t get help (with dredging), lion in sales, $661,000 in wages and up a few inches, but it’s going to they wouldn’t be able to open their salaries and $952,000 in value added take more than one hard winter — 248.658.1100 HennesseyCap.com doors.” to the local economy, supporting 37 it takes years.” Cannon said he can walk around jobs, the study states. Matthew Gryczan: (616) 916-8158, areas of the harbor in ankle-deep Annual craft expenses — slip [email protected]. Twitter: water that used to be 6 feet deep — fees, storage, repairs, equipment — @mattgryczan 20130311-NEWS--0011-NAT-CCI-CD_-- 3/8/2013 10:44 AM Page 1

March 11, 2013 CRAIN’S DETROIT BUSINESS Page 11 CRAIN’S MICHIGAN BUSINESS Midland homes look like neighborhood, but Dow’s testing efficiency

BY JESSICA HOLBROOK The project will generate compar- CRAIN NEWS SERVICE ative data on home energy efficiency based on whole-house insulation, LAS VEGAS — Dow Building Solu- air-sealing systems and real-world tions, a unit of Dow Chemical Corp., living conditions. It also will offer has created a “test community” of data on energy consumption, hu- 12 houses in Dow’s hometown of midity, moisture levels, heat flow Midland, designed to capture com- and temperature, Dow said. parative data on high-perfor- The houses were built by Cobble- mance, energy-efficient homes. stone Homes of Saginaw. The builder The project — dubbed TEETH, purchased the materials for the for Twelve Energy Efficient Test homes through regular retail chan- Homes — consists of a neighbor- nels — though Dow reimbursed hood of houses built uniformly to costs — so Dow also could compare precise standards, like orientation the price of building the homes. to the sun and grade, to make them It’s about a $5,400 difference be- as close to identical as possible. tween a home built at 2006 green The houses are comparable in size, building standards and one built floor plan and other key features. using 2012 standards, Morey said. The only variables are each The homes are also being rent- house’s “envelope” — the outer ed. As part of Dow’s five-year part- walls, doors, windows, floors and nership with Cobblestone, the ceiling — and how the home is company is given access to infor- built, James Morey, residential mation like the tenants’ energy market manager for Dow Building bills, utility costs and electricity Solutions, said in an interview in consumption. January at the International Builders’ Dow also periodically will ques- Show in Las Vegas. tion the residents about the com- The homes are built to one of fort and durability of the house three standards: a baseline model, and each feature, Morey said. a mostly Dow house and one given Dow also will be able to compare “the steroid approach,” Morey the demographics and lifestyles of said. the residents and see the impact of The project will give Dow a “stan- a family with teenagers compared dardized, baseline way” to compare to the impact of a childless couple. data on energy-efficient housing. The tenants will not know what And because the homes are nearly model home they are living in. identical, people won’t be able to They all will pay the same rent. discount the results, he said. From Plastics News

Judge halts Lansing casino work

BY CHAD HALCOM in 1997. It intends to apply to the CRAIN’S DETROIT BUSINESS U.S. Department of the Interior to take the Lansing properties into The Sault Ste. Marie Tribe of trust, a prerequisite for off-reser- Chippewa Indians cannot proceed vation gambling. with the casino it has planned for But a section of the Indian gam- downtown Lansing until it adopts ing act requires that an application a revenue-sharing agreement with to place that land in trust have “a other Michigan tribes, a federal prior written agreement between court judge ruled last week. the tribe and the state’s other feder- Judge Robert Jonker of U.S. Dis- ally recognized Indian tribes that trict Court in Grand Rapids ordered a provides for each of the other tribes preliminary injunction in the Sep- to share in the revenue of the off- Reliable, modernized grid tember lawsuit brought by Michi- reservation gaming facility.” gan Attorney General Bill Schuette The Saginaw Chippewas, who Energy is essential to the way we live, work and play. to stop development of the $245 mil- own Soaring Eagle Casino & Resort lion Lansing Kewadin Casino, citing a near Mt. Pleasant, and the Not- provision of the federal Indian tawaseppi Hurons, who own Fire- ITC operates, builds and maintains the region’s electric Gaming Regulatory Act. Keepers Casino near Battle Creek, The tribe entered into a compre- both contend the Sault haven’t transmission infrastructure. We’re a Michigan-based company hensive development agreement reached such an agreement with with Lansing officials last year to them. working hard to improve electric reliability and increase electric develop an off-reservation casino in In a statement, Sault Tribe the city’s entertainment district. Chairman Aaron Payment sug- transmission capacity throughout the Midwest. But leaders of the Saginaw Chippewa gested an appeal may be coming. Indian Tribe and the Nottawaseppi “The Sault Tribe remains unde- Huron Band of Potawatomi Indians con- terred and steadfastly committed tend the Sault have not reached a to pursuing our legal right to de- revenue-sharing agreement with velop our Lansing casino,” he said. them for Kewadin Lansing. “Anyone who understands tribal The Sault completed a Lansing gaming and the trust land process www.itctransco.com land purchase in November using also understands that this is going income from a trust established to be lengthy process with multi- from funds allocated by Congress ple legal steps along the way.” 20130311-NEWS--0012-NAT-CCI-CD_-- 3/8/2013 11:42 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS March 11, 2013 CRAIN’S MICHIGAN BUSINESS State tourism industry’s plan is pure expansion

BY AMY LANE portation. The plan suggests strate- The plan hits on the industry’s SPECIAL TO CRAIN’S MICHIGAN BUSINESS gies that include taking inventory of need for research and data. It sug- Most of the states that have a tourism current transportation options into gests establishing an online sys- Michigan’s tourism industry “ and throughout the state, identify- tem to capture and share relevant has a new five-year blueprint for office like Travel Michigan have a ing gaps in service and connectivi- industry research, potentially sup- growth. Now members of that in- ty, and investigating solutions. ported by fees on those who use it. dustry will determine what can be marketing plan, but not many (have a) ... The plan’s analysis of the indus- Also in the plan is the idea of the achieved in the coming years and plan that focuses on more than marketing. try’s strengths, weaknesses, oppor- “Pure Michigan promise” and the how to do it. ” tunities and threats identifies Detroit need for the state to “foster a cul- The strategic plan’s goals in- Metropolitan Airport as a major global ture of service excellence” so it can Sarah Nicholls, Michigan State University clude greater collaboration, im- asset and notes other urban oppor- meet visitor expectations raised tunities, such major-league sports by the successful Pure Michigan proved funding and heightened al, said Sarah Nicholls, a Michigan “In many ways, we look at teams and Detroit’s reputation — ad campaign. recognition of the Pure Michigan State University associate professor Toronto like another Chicago,” particularly outside the U.S. — for brand — including the objective to who facilitated the planning under Zimmerman said. An identified weakness: Incon- automotive innovation and music. increase visitor spending more the Travel Commission’s leader- He said the state also would look sistent customer service quality than 21 percent, to $21.5 billion in ship and wrote the final document. to expand its presence in Europe The plan “points out that urban throughout Michigan and a lack of 2017 from $17.7 billion in 2011. “Most of the states that have a and launch tourism marketing in destinations are an important a standard customer service train- The plan — developed with in- tourism office like Travel Michigan Asia, including Japan, South Ko- piece of the pie,” said Michael O’- ing or approach. put from hundreds of members of have a marketing plan, but not rea and China. Callaghan, executive vice presi- Steve Yencich, president and Michigan’s tourism industry, at many of them have an industry- Felicia Fairchild, executive di- dent and COO of the Detroit Metro CEO of the Lodging and Tourism meetings around the state and wide plan that focuses on more rector of the Convention & Visitors Bureau. Association, said the difficulty is through other venues — “is com- than marketing,” Nicholls said. Saugatuck-Dou- O’Callaghan said another signifi- “finding a training program that pletely influenced and written by Already in play is funding that glas Convention & cant element is the plan’s focus on can be used across all industry seg- the industry and for the industry,” would underpin one significant ob- Visitors Bureau, collaboration and bringing together ments” and is affordable to all, he said Patricia Mooradian, presi- jective: Increasing the Pure Michi- said she hoped members of the tourism industry. said. dent of The Henry Ford in Dearborn gan campaign’s presence interna- the beefed-up A current example of the collab- The Pure Michigan promise is a and chairman of the Michigan Trav- tionally. Gov. Rick Snyder’s budget marketing inter- oration that the plan might envi- broad concept, Yencich said. el Commission. proposal to boost Pure Michigan nationally could sion: The Detroit convention bu- “It begins the moment you cross The commission adopted the funding to $29 million from $25 mil- boost an aggres- reau’s quarterly social media the state line and includes the 2012-17 plan in February, and lion by the 2014 fiscal year would sive focus her seminars, previously offered to its roads and bridges you travel on, putting it into action will be dis- own members, now will be avail- give the state money for interna- bureau has on Fairchild includes our initial impressions cussed at a session at the April 14- tional promotion that could in- international able to members of the Michigan as we walk into that restaurant, 16 Pure Michigan Governor’s Confer- clude advertising in Toronto — a visitors, drawn to the character of Lodging and Tourism Association. hotel, golf course … and does not ence on Tourism at the Detroit market where Michigan never has “small-town America” and the wa- Association member properties end with the delivery of customer Marriott Renaissance Center. had a significant presence, said ter. can sign up, watch and ask ques- service excellence,” he said. “It’s The plan reaches beyond promo- George Zimmermann, vice presi- But she and others also said many tions via online access to the semi- the follow-up and follow-through tion to identify other critical issues, dent of Travel Michigan, the state’s international visitors are accus- nars, produced in Troy, beginning to that entire vacation experi- and that makes it somewhat unusu- tourism marketing arm. tomed to traveling via public trans- March 21. ence.” 20130311-NEWS--0013-NAT-CCI-CD_-- 3/8/2013 9:50 AM Page 1

March 11, 2013 CRAIN’S DETROIT BUSINESS Page 13

Monthly Netherlands WHERE MICHIGAN DOES BUSINESS

fice services and logistics on a temporary he Netherlands has the fifth-largest Crain’s monthly World Watch report and contract basis. In addition, Kelly pro- economy in the eurozone, even showcases Michigan companies lead- Farmsum vides customers payroll and search and se- T though its 2012 tax revenues Amsterdam, ing the way in international business, Groningen lection services. dropped 9 percent and its GDP contracted. Hoofddorp, as well as those expanding their global Winschoten Top executive: Leif Agnéus is senior vice Its estimated GDP is $770.2 billion, No. Schiphol-Rijk operations. president, Europe, Middle East and Africa 24 in the world, according to the CIA Westknollendam Each World Watch Monthly features and Asia-Pacific regions. Bas Jongen is World Factbook. a different country. If you know of a country general manager for Benelux. In 2011, the U.S. imported $33 billion in Nijkerk Michigan company that exports, manu- goods and services from the Netherlands Arnhem factures abroad or has facilities abroad, NETHERLANDS and exported $47.5 billion. Major indus- Gravenzande Masco Corp. email Jennette Smith, managing editor, Alblasserdam tries include construction, fishing and mi- at [email protected]. Putte Based: Taylor croelectronics. It is also part of the Breda, Etten-Leur Hoek, Operations: Hüppe BV in Alblasserdam and Benelux economic union with Belgium Terneuzen Born Hansgrohe BV in Westknollendam, market- and Luxembourg. COMING UP Steenbergen, ing and sales locations Ⅲ April: Saudi Arabia Ⅲ May: Japan Roosendaal Employees: About 30 GERMANY Products: Bathroom and kitchen products BELGIUM including showers, faucets, toilets and in- Beyond Interactive Inc. bergen stallation systems Employees: 100-150 Top executive: Mark van Leuken, sales Based: Ann Arbor Products: Muffins, cookies, pastry mixes, FRANCE manager, Hüppe BV; Sander Hengeveld, Operations: Mediacom BV in Amsterdam custard powders, dry ingredient mixes and rayon manager, Hansgrohe BV Employees: 27 extruded decorations Products: Sales and marketing organiza- Industries served: The food and bakery in- managing director, Opel Netherlands tion dustry and food service MSX International Inc. Industries served: Online adverting Top executive: Janet Spiering, cluster International Automotive Based: Warren Top executive: Frank Bitter, CEO of Media- leader of Dawn Benelux (Belgium/Nether- Operations: Headquarters are in Nijkerk, com BV lands/Luxembourg), who reports to Serhat Components Group which is also the headquarters for the MSXI Unsal, president of Dawn Foods International Based: Southfield Benelux business unit. Operations: Research and development, Employees: 100 Dow Chemical Co. manufacturing and production facilities in Products: Call centers and retail network Born services, which include customer relation- Based: Midland Employees: Approximately 275 ship management, management of warran- Operations: Headquarters for Dow Benelux Products: Dashboards, instruments, doors ty programs, coaching programs and ser- BV located in Hoek, Terneuzen; manufactur- and bumpers vice and technical training ing, production facilities in Farmsum and Industries served: Automotive Top executives: David Leroi, operation Winschoten Top executive: Rien Segers, senior vice director for Benelux; Johan Kloosterboer, Employees: 2,235 president, engineering and development operation manager, Netherlands; René Products: High-density polyethylene, poly- Europe Derboven, account manager, Belgian busi- ether polyols, and Dow cellosize (polymers ness that are readily soluble in water and are More information: Benelux is part of used in a wide range of agriculture, textiles Inteva Products LLC MSXI’s retail network solutions business and household products) Based: Troy unit. Biggest customers include BMW, Fiat Industries served: Automotive, oil and gas, Operations: Voestalpine Polynorm BV in Bun- Group Automobiles, Ford, General Motors, Huyn- Compuware BV is based in the borough of packaging, building and construction, fur- schoten, main production facility for the dai-Kia, Jaguar Landrover, Renault-Nissan Al- Amsterdam-Zuidoost. niture, wire and cable, large appliances, wa- Northern and Western European customer liance, Mercedes, Peugeot Citroen, Toyota, the ter treatment and agriculture base; Voestalpine Plastics Solutions in Putte Volkswagen Group, Volvo, and also truck busi- Compuware Corp. Top executive: William Huisman, chair- and Roosendaal, plastics manufacturer ness with Iveco. Based: Detroit man of the board of directors of Dow Employees: More than 1,030 Operations: Compuware BV, Amsterdam- Benelux BV Products: Closure systems, interior sys- Zuidoost tems, motors, electronics and roof systems Employees: 86 Flint Group Inc. Industries served: Defense, commercial ve- Products: Performance management ap- hicle, consumer, automotive plications and mainframes; business portfo- Based: Plymouth Township Top executive: Benno Rammelmüller, man- lio software; professional services automa- Operations: Flint Ink Winschoten BV service, aging director and chairman, Voestalpine tion software; Covisint cloud engagement manufacturing and production center in Polynorm Metals Group software; Uniface application development Winschoten; marketing and sales office in platforms Winschoten; manufacturing and production Top executive: Philippe Llorens, senior facility in Gravenzande; headquarters in Kelly Services Inc. vice president, Europe, Middle East, Africa Luxembourg Based: Troy Employees: 204 Operations: Kelly Services has had a pres- MSX International is headquartered in Nijkerk, Products: Print ink and coating, press- ence in the Netherlands since 1990. Current along with the MSXI Benelux business unit. Dawn Food Products Inc. room chemicals, printing blankets and operations are located in Hoofddorp, Arn- Based: Jackson sleeves, pigments, and additives hem and an on-site customer location in Operations: Breda, Groningen and Steen- Industries served: Packaging and printing Schiphol-Rijk. Thetford Corp. Top executive: Charles Knott, Employees: 20 permanent employees Based: Ann Arbor chairman of Flint Group Inc., is Products: Kelly provides employees Operations: Thetford BV headquarters for based in Amsterdam. skilled in the areas of finance, science, of- Europe research, development, marketing, sales, manufacturing, and production in Et- General Motors Co. ten-Leur Employees: 450 Based: Detroit Products: Permanent and portable toilets, Operations: Breda, sales and chemicals, cleaners, refrigerators marketing organizations of Opel Top executive: Stéphane Cordeille, manag- and Chevrolet Netherlands ing director, Thetford BV Employees: Approximately 150 More information: Thetford’s European Products: Sales and marketing headquarters was established in 1971. organization — Ryan Felton Industries served: Delivers products (mainly Opel and Chevrolet) to private and business cus- Sources: Crain’s research, CIA World Fact- tomers in fleet, lease and rental book, Netherlands Foreign Investment Janet Spiering is cluster leader of Dawn Benelux. Top executive: Karl Howkins, General Motors has a building in Breda. Agency, Economicties.org 20130311-NEWS--0014-NAT-CCI-CD_-- 3/8/2013 9:48 AM Page 1

Page 14 CRAIN’S DETROIT BUSINESS March 11, 2013 CRAIN'S LIST: LARGEST MICHIGAN LOGISTICS 20I3 DETROIT TIGERS COMPANIES Ranked by 2012 revenue SEASON TICKETS Company Revenue Full-time employees Address ($000,000) Percent in Michigan STILL AVAILABLE Rank Phone, website Top local executive(s) 2012/2011 change Jan. 2013 Con-way Inc. Douglas Stotlar $5,580.9 5.5% 897 1. 2211 Old Earhart Road, No. 100, Ann Arbor 48105 president and CEO $5,290.0 (734) 757-1444; www.con-way.com Universal Truckload Services Inc. H.E. "Scott" Wolfe 1,037.0 B 48.2 NA 2. 11355 Stephens Road, Warren 48089 CEO 699.8 (586) 920-0100; www.goutsi.com Express-1 Inc. Joe Stevens 548.0 C 209.6 155 3. 429 Post Road, P.O. Box 210, Buchanan 49107 president 177.0 (269) 695-2700; www.express-1.com TICKET PACKAGES United Road Services Inc. Kathleen McCann 288.0 11.2 317 4. 10701 Middlebelt Road, Romulus 48174 president and CEO 259.0 AS LOW AS $374 (734) 947-7900; unitedroad.com England Logistics SCM Patrick Runk 278.4 8.6 65 5. 33031 Schoolcraft Road, Livonia 48150 managing director 256.3 GREAT BENEFITS (734) 838-9000; www.englandlogistics.com/scm * KC Integrated Services LLC Kenyon Calender 129.6 23.4 NA INCLUDING: 6. 862 Will Carleton Road, Carleton 48117 CEO 105.0 (800) 476-6317; www.kcintegrated.com • Opening Day tickets with plan ProTrans International Inc. Shawn Masters 122.0 D 13.7 100 • Postseason ticket priority 7. 28552 Orchard Lake Road , Farmington Hills 48334 vice president of operations 107.3 D • Season ticket discount (248) 538-6100; www.protrans.com James Group International Inc. John James 110.0 266.7 131 • Complimentary food vouchers 8. 4335 W. Fort St., Detroit 48209 chairman and CEO 30.0 • And more! (313) 841-0070; www.jamesgroupintl.com ■ Biggest increase RSI Logistics Inc. Kelley Minnehan 104.4 5.8 NA *Some restrictions apply. 9. 2419 Science Parkway, Okemos 48864 senior vice president 98.7 (517) 349-7713; www.rsilogistics.com Rush Trucking Corp. Andra Rush 104.0 -9.6 532 #48 Torii Hunter 10. 35160 E. Michigan Ave., Wayne 48184 president and CEO 115.0 (800) 526-7874; www.rushtrucking.com E.L. Hollingsworth & Co. Christopher Shepard 95.2 26.1 275 11. 3039 Airpark Drive N., Flint 48507 president 75.5 (810) 233-7331; www.elhc.net 313.471.BALL (2255) Load One Transportation & Logistics John Elliott 68.8 22.1 415 12. 13221 Inkster, Taylor 48180 president and CEO 56.3 (734) 947-9440; www.load1.com Transcorr National Logistics LLC Brian Jones 50.0 12.4 70 13. 2855 44th St., Suite 300, Grandville 49418 COO 44.5 (888) 778-0773; www.transcorrlogistics.com VSF Transportation Inc. Mont Reed 46.4 5.5 90 14. 1025 Ken-O-Sha Industrial Drive, Grand Rapids 49508 president 44.0 (616) 530-0005; www.vsftransportation.com Landaal Packaging Systems Robert Landaal 40.0 14.3 175 15. 3256 B Iron St., Burton 48529 VP marketing/sales 35.0 (800) 656-6652; www.landaal.com ARC Supply Chain Solutions Inc. Greta Elliott 39.7 66.8 32 16. 13221 Inkster Road, Taylor 48180 president 23.8 (877) 272-3523; www.arc-scs.com Chris Kopp vice president Evans Distribution Systems Inc. John A. Evans 35.8 8.5 503 17. 18765 Seaway Drive, Melvindale 48122 president 33.0 (313) 388-3200; www.evansdist.com John W. Evans CEO Columbian Distribution Services Inc. John Zevalkink 35.0 NA NA 18. 900 Hall St. SW, Grand Rapids 49503 CEO NA (616) 514-6000; www.columbianlogistics.com Bay Logistics Inc. Don Finney 27.0 8.0 135 19. 9450 Buffalo St., Hamtramck 48212 general manager 25.0 (313) 664-4100; www.baylogistics.com Seko Worldwide Detroit Tanya Bartelo 24.9 16.3 20 20. 6800 S. Cypress, Romulus 48174 Michael Bartelo 21.4 (734) 641-2100; www.sekologistics.com/detroit owner, managing directors US Special Delivery Inc. Terry Reed 20.3 4.7 102 21. 821 East Blvd., Kingsford 49802 president 19.3 (906) 774-1931; usspecial.com AIT Worldwide Logistics Lorri Fairchild 18.6 0.7 NA 22. 30255 Beverly Road, Suite 100, Romulus 48174 Detroit franchise owner 18.4 (734) 326-9140; www.aitworldwide.com Three Star Trucking Co. Inc. Denise Rays 15.9 -20.5 59 23. 36860 Van Born Road, Wayne 48184 president and CEO 20.0 (734) 728-5500; www.threestartrucking.com Frontline Logistics Inc. Greg Haigh 13.5 8.0 14 24. 10315 E. Grand River, No. 300, Brighton 48116 vice president 12.5 (734) 449-9474; www.frontlinelogistics.com JMA Logistics LLC Jeanette Abraham 4.2 7.7 7 25. 28401 Schoolcraft Road, Suite 450, Livonia 48150 president/CEO 3.9 (734) 762-4830; www.jmalogistics.com

This list of logistics companies is an approximate compilation of the largest such companies in Michigan. It is not a complete listing but the most comprehensive available. Crain's estimates are based on industry analysis and benchmarks, news reports and a wide range of other sources. Unless otherwise noted, information was provided by the companies. Companies with headquarters elsewhere are listed with the address and top executive of their main Michigan office. Actual revenue figures may vary. NA = not available. B Acquired Linc Logistics Co. July 26, 2012. C Acquired six companies in 2012. D Crain's estimate. LIST RESEARCHED BY BRIANNA REILLY 20130311-NEWS--0015,0016-NAT-CCI-CD_-- 3/8/2013 10:59 AM Page 1

March 11, 2013 CRAIN’S DETROIT BUSINESS Page 15

LEADING THROUGH TOUGH TIMES Longtime Beaumont board trustee tells of the ups and downs, Page 17

People

Adrianne Fazel, Au.D., senior staff audiologist at Henry Ford Health System Sight adjustment in Detroit, was elected president of the Michigan Academy of Eye surgeons refocus after recession with improved technology, more patient options Audiology. Fazel joined Henry Ford in BY JAY GREENE 2003 and became CRAIN’S DETROIT BUSINESS Fazel coordinator of mprovements in eye surgery clinical services at the hospital in 2008. technology over the past 20 Carmen Green, M.D., has been I years have changed the med- appointed the University of Michigan ical practices of many ophthal- Health System’s inaugural associate mologists in Michigan and giv- vice president and associate dean for health equity and inclusion. She is a en patients lower-cost member of the Institute of Medicine’s treatment options. Healthcare Services board and the U.S. While Medicare has ratch- Secretary of Health and Human Services’ eted down physician and hospi- Interagency Pain Research Coordinating tal reimbursement — with com- Committee. mercial payers following suit — Gary Hammer, M.D., has received the lower-cost ambulatory surgery Endocrine Society’s 2013 Laureate centers with cutting-edge tech- Award, an annual award that recognizes nology have enjoyed payment outstanding research in endocrinology. increases, leading to a boom in Hammer, of Ann Arbor, works in adrenal outpatient surgery. developmental biology and cancer. But the economic recession Howard Markel, M.D., director of the of 2007-09 forced the biggest Center for the History of Medicine at the change on practitioners who University of Michigan, was appointed to specialize in elective, cosmetic a three-year term for the Board of and refractive surgery, includ- Population Health and Public Health ing Lasik, as large numbers of Practice at the Institute of Medicine of patients put off surgeries. the National Academies. “We had a huge practice for Irva Faber-Bermudez, president and Lasik — 40 employees and seven CEO of Detroit Central City Community physicians. We were rock and Mental Health Inc., was recently rolling, we were so busy,” said appointed by Gov. Rick Snyder to the Robert Beitman, M.D., who GLENN TRIEST 14-member Mental Health Diversion As the recession took its toll on Beitman Laser Eye Institute, founder Robert Beitman consoldiated his practice, founded West Bloomfield-based added advanced technology and began catering to more affluent customers. Council within the Department of Beitman Laser Eye Institute in 1988. Community Health to find an appropriate In late 2007, Beitman and his way to move individuals with mental four offices were performing cataract, the cloudy lens, and re- illness or substance abuse problems 4,000 annual Lasik procedures at EYE SURGERY TYPES places it with an artificial lens. out of the criminal justice system into $1,500 per eye. By late 2008, those appropriate treatment. Lasik: Laser-assisted in-situ and allow fluid to drain more volumes dropped by 70 percent. keratomileusis is the most freely. Cost is about $1,500 per M. Jeffrey Maisels, M.D., was honored Better vision for hospitals Refractive surgery helps to ad- widely used corrective eye eye. as a 2013 Legends of Neonatology Hall just focusing ability by reshap- surgery. A type of refractive While the majority of eye of Fame inductee last month. Maisels Retinal surgery: There are ing the cornea, or front surface surgery, Lasik uses a laser to many types of retinal surgery. surgeries have moved to outpa- served as the Beaumont Children’s of the eye, reducing the need for reshape the cornea to improve One common medical tient centers, hospitals have ad- Hospital pediatrician-in-chief since it was glasses or contact lenses. Lasik vision. Cost is $1,800 to emergency is retinal justed by improving efficiencies formed in 2009. $2,000 per eye. and opening up freestanding — or laser-assisted in-situ ker- detachment, in which the retina The Greater atomileusis — is by far the most Cataracts: The outpatient peels away from the supporting centers of their own, said Paul Detroit Area Health popular, but other similar proce- procedure usually takes less tissue. Surgery is used to repair Edwards, M.D., chairman of the Council announced than 30 minutes. After a patient a detachment. Another type of dures include photorefractive department of ophthalmology at that Brian Connolly, is given anesthetic eye drops, a damage is a retinal tear, keratectomy, which uses the Ex- Henry Ford Health System. president and CEO microscopic incision is made to repaired with a laser. Cost is Most of Henry Ford’s 5,000 cimer surgical laser to reshape replace the damaged lens with about $2,800 per eye to use a of Oakwood annual cataract surgeries are the cornea for better vision, and either a monofocal or multifocal laser to correct a retinal lesion, Healthcare, was performed in its outpatient named chair of the intrastromal corneal ring seg- implantable lens. Cost varies or a disease or infected piece of medical centers, GDAHC board of ments to treat myopia. depending on the type of lens. the retina. but 2,000 retinal directors for a one- “Competition was huge be- Standard lens cost is about Eye muscle surgery: year term. fore,” Beitman said. “We had a $600, with multifocal up to Performed to weaken, procedures are Connolly $3,200 per eye. strengthen or reposition any of conducted in Also, Francine large market share. People the small muscles attached to hospital operat- Parker, executive were advertising. I liked it be- Glaucoma: Glaucoma is an eye disease in which the the eye’s surface that move it in ing rooms, Ed- director of the UAW cause when a new ad came out, internal pressure of the eye all directions. The surgeon my phone rang all the time.” wards said. Retiree Medical rises to a point that it damages makes an incision in the clear Benefits Trust, was To deal with the downturn, “Reimburse- the optic nerve and impairs membrane covering the eye, ments have named chair-elect Beitman modified his practice vision. Using a laser or places a suture to hold it in been declining and will become chair in several ways — consolidat- conventional surgery, the place and then loosens the eye the past 20 in January. She ing into one office, adding more surgeon makes a small hole in muscle with a surgical device. Edwards chairs the GDAHC advanced technology and cater- the iris or removes a piece of the Cost ranges between $2,000 years,” he said. executive committee. ing to a more affluent group of eye (sclera) to reduce pressure and $4,000 per eye. “We used to get $2,000 per case for cataracts. Now it is $600 per Robert Milewski, people who paid for higher Sources: Henry Ford Health System Department of Ophthalmology, the Encyclopedia senior vice president case.” Parker quality and amenities, he said. of Surgery, Healthcare Blue Book and special “We raised our prices slowly Besides higher overhead assistant to the president for hospital to about $2,000 per eye. Our vol- I am the only medical doctor.” cataract surgery by age 80, and costs, surgeries at hospitals are relations at Blue Cross Blue Shield of umes have stabilized at 100 pro- Each year, 1.4 million cataract 30 million will do so over the also more expensive because it Michigan, has joined the board of cedures a month,” said Beitman. operations are performed na- next 10 years, according to the takes longer to get patients directors for the Michigan Health “Now we have six employees, an tionally at a cost of $3.5 billion. U.S. Centers for Disease Control and from surgery to recovery and to Information Network Shared Services. optometrist (Jeffrey Rautio), and Half of all Americans will have Prevention. Surgery removes the See Sight, Page 16 20130311-NEWS--0015,0016-NAT-CCI-CD_-- 3/8/2013 10:59 AM Page 2

Page 16 CRAIN’S DETROIT BUSINESS March 11, 2013 Health Care Sight: Eye surgeons refocus with improved technology, options ■ From Page 15 their hospital rooms, Edwards said. sion). Some of the newer multifo- cility for their Lasik procedures. “Ambulatory centers are used to cal intraocular lenses have the He has issued medical credentials rapid pace, getting them in and out ability to correct vision in both for about 25 surgeons. and to their homes,” he said. “The planes, but Medicare does not pay “Business is good, but (with) the main change the past two or three for the premium lenses, he said. recent pay cuts (13 percent from years is the equipment. It is get- “Patients like the multifocal Medicare), it has taken a lot to ting better all the time.” lens, but they are expensive and make ends meet now,” said Cza- For example, Henry Ford pur- (the physician services) must be jkowski, noting that Medicare had chased a new operating micro- paid out of pocket,” Edwards said. threatened a 30 percent physician scope for cataract and retinal Of Henry Ford’s 5,000 annual reimbursement cut. “Expenses go surgery that cost nearly $100,000 cataract operations, 10 percent to up continually, and it is has made and allows the system’s 32 sur- 15 percent of patients select the it impossible for smaller practices geons to be more precise. multifocal lens and pay out of to continue.” “Ninety-nine percent of work pocket for the additional physician With five surgeons and four op- now is done in the outpatient set- services Medicare does not cover, tometrists, Czajkowski said, his ting. We are doing less and less at Edwards said. practice just added a sixth doctor. the main hospital. Usually (inpa- “The larger practices are becom- tient surgery) is major issues — se- ing larger because new doctors rious ocular injuries, infections Upgrading lenses coming out find it too expensive to and blindness in one eye,” Ed- At Michigan Outpatient Surgery open their own practice,” he said. wards said. COURTESY OF MICHIGAN OUTPATIENT SURGERY CENTER Center in Fraser, Norbert Cza- Donigan said the center was one He said the volume of Lasik and Norbert Czajkowski, M.D., works at a laser at Michigan Outpatient Surgery jkowski, M.D., said of his prac- of the first to open in Michigan in other elective or cosmetic proce- Center in Fraser. tice’s 1,600 cataract procedures 1983, before the state had a certifi- dures — droopy eyelids (blepharo- Now it is about $2,000, and we are difference. “We get a lot better re- each year, about 500 patients cate-of-need requirement in 1984. plasty), eye lifts and brow lifts — doing less of them,” he said. “We are sults,” he said. choose specialty lenses, either “We worked with the state of have been declining the past 10 offering many more with enhance- For example, Medicare pays for multifocal implants or toric lenses Michigan to develop the CON regu- years because people have fewer ments to correct aberrations.” implants in cataract surgery that for astigmatism, or blurry vision. lations and used the model in disposable dollars. Edwards said new technology correct in one plane of vision — ei- “Our patients are thrilled with Florida,” Donigan said. “Surgery “We were able to offer Lasik well can map out aberrations in the ther for nearsightedness (distance the results, and this counterbal- centers really ballooned in Michi- below market cost at $999 per eye. cornea and lens and correct for the vision) or farsightedness (near vi- ances our lower payments for the gan in the 1980s as other special- standard cataract,” he said. ties got into the business.” Under reimbursement rules, To cut costs and maintain good Medicare pays a facility fee of $950 patient services, Czajkowski said, per eye for cataracts, which in- his practice recently eliminated cludes a $150 allocation for the corneal transplants because reim- standard lens. The cost to the facil- bursement is below costs. ity for the standard lens, however, “We have to make patients feel is $350, said Kathy Donigan, R.N., you are spending more than ade- business manager for the Michi- quate time with them, but we have gan Outpatient Surgery Center. relegated some of the dialogue to Physicians are paid $650 per eye assistants,” he said. for the surgical services to implant Over the next several years, Ed- the standard lens, Donigan said. wards said, the decline in profes- But if a patient wants a specialty sional fees for physicians will re- lens, the additional testing, coun- sult in consolidation of some seling and higher cost for the lens- surgery centers. es could run up the per-eye cost be- “Our department has been grow- tween $1,600 for the toric lens and ing, and more private doctors will $3,000 for the multifocal implants, join ambulatory care centers as a Donigan said. Those charges do way to cover their overhead and not include the cost of the $900 pay for the new technology that is multifocal lens and the $500 toric coming out every year, (much) of lens, for which Medicare does not which is not being covered by in- allow patients to be billed. surance,” Edwards said. “We have Steve Shapiro, M.D., acting chief to be as efficient as we can to keep medical officer of HealthPlus of our costs down for patients.” Michigan in Flint, said HealthPlus At the Livonia Outpatient Surgery and most other health insurers Center, Nate Kleinfeldt, M.D., co- cover procedures that are medical- owner with Saad Ahmad, M.D., ly necessary. said business is booming in “Sometimes cosmetic surgery cataract surgery because of the ag- can be a medical issue,” Shapiro ing senior population. said. For example, sagging or Kleinfeldt also owns the Coburn- droopy eyelids can be medical if Kleinfeldt Eye Clinic, which has of- the patient’s field of vision is limit- fices in Livonia and Dearborn and ed above a certain amount, he the recently opened a Warren clin- said. ic. The practice has six ophthal- “We have a test we give patients mologists and conducts about 2,600 with blinking lights to measure cataract surgeries a year. their field of vision,” Shapiro said. While reimbursement has de- “Most health plans will cover the clined the past several years, Kle- procedure if the field of vision loss infeldt said his clinic has in- meets medical criteria.” creased patient volume an average But the new technology involv- of 10 percent from referrals. ing cataract surgery is not covered “All we do every day is eyes,” he by Medicare or commercial insur- said. “It takes us 10 minutes to do a ance, Shapiro said. core cataract. Any hospital, in gen- “If you want to enhance your vi- eral, takes 20 minutes.” sion, that is fine,” he said. “We will Kleinfeldt said patients can ex- pay the amount for the basic cover- pect to have their cataract opera- age, and you pay the difference.” tions completed in less than an hour, compared with three hours at a typical hospital. Coping with costs “We have a surgery center not to Czajkowski, who also heads the just do surgeries faster, but bet- Fraser Eye Care Center and the Eye ter,” he said. Care Center of Port Huron, said a Jay Greene: (313) 446-0325, growing number of small-practice [email protected]. Twitter: surgeons are paying to use his fa- @jaybgreene 20130311-NEWS--0017-NAT-CCI-CD_-- 3/8/2013 10:43 AM Page 1

March 11, 2013 CRAIN’S DETROIT BUSINESS Page 17 Health Care Recession helped Beaumont set course, says longtime trustee CON Roundup The following are selected fil- Stephen Howard has ex- emergency department paid less under Medicare and have with a health plan and a strong core ings from Feb. 1-28: perienced several highs for Beaumont Hospital Roy- to earn it back with higher quality. of physicians? Henry Ford has Letters of intent and lows in the 19 years al Oak, a proton beam Quality became the first subject Health Alliance Plan and the Henry Ford Ⅲ Vibra-Heritage Specialty Hospi- he has served as trustee therapy cancer center at board meetings, and that be- Medical Group. We saw a great fit. tal, Taylor: Begin operation of a of Royal Oak-based Beau- and ambulatory care site came our mantra. We established From a governance standpoint, 40-bed long-term acute care hos- mont Hospital, the last two expansion. several board committees on qual- what are the differences between pital in about 20,000 square feet as chairman of Beaumont In 2008, we had accept- ity. We went from the 50th per- Beaumont and Henry Ford? of leased space at Oakwood Her- Health System. ed a check from a donor centile (in many quality areas) to Our governance structure is less itage Hospital, $5 million. Just in the past five and broken ground on the the 90th percentile. complex than Henry Ford. We years — from the nation- new ER center. We had to have a centralized governance or- Applications received al economic meltdown in stop. It is on hold today. When did the board begin thinking ganization with all three hospitals Ⅲ Executive Ambulatory Surgical 2007-09 that led to finan- We wanted to have the about merging with another health reporting to a single board. Center LLC, Dearborn: Begin op- cial losses of $214 million Q&A first proton beam center care system? We have 27 directors, including erating a freestanding surgical for Beaumont, to the an- in Michigan. We had a Two years ago we started an 18- 19 independent directors, who outpatient facility with one op- Stephen Howard, nouncement last Oct. 31 certificate of need for it, month process to develop a five- have representation from all three erating room, $6 million. on a merger with Detroit- Beaumont Health but it was a $100 million year strategic plan and look at hospitals, the medical staffs and Ⅲ Oakland Manor Nursing & Re- based Henry Ford Health System package. We asked man- partnership options. the community. hab Center LLC, Pontiac: Lease System — Howard has agement to prioritize With health care reform coming, Henry Ford is more complex 30,000 square feet of space from participated in and led the board in spending. The technology is not we saw hospitals consolidating into McLaren Health Center in Pontiac and has more boards than we do. many tough governance decisions. 100 percent there yet, payers are super-regional systems and knew and renovate for 70-bed nursing They have a board of trustees at A former automotive manufac- not aligned. It is back-burner now. we had to grow larger. At $2 billion home, $3 million. turing owner of five companies, We reassess every several months in annual revenue, we were pretty each hospital. Each has its own Howard is founder of Franklin- to see where we are. big, but was that enough? Did we board with own budgets and gover- Filings approved based Spearhead Group, which pro- We had a big ambulatory care need to be $4 billion or $6 billion? nance structure. They have an em- Ⅲ Lakeside Manor Nursing & Re- vides consulting services to manu- strategy. We looked to go west and We hired Kaufman Hall out of ployed medical group with its habilitation Center, Sterling facturing companies and quite a bit north. McLaren Health Chicago to help us with major board of doctors. Their corporate Heights: Construct and operate governing boards. In February, he Care was already in Independence strategic planning issues. They board mostly sets policy. 55,000-square-foot facility with was selected as Trustee of the Year Township, so we decided not to told us there are 32 super-regional 99 nursing beds, $7.4 million. for a nonprofit health system by pursue that. We scaled all our pro- systems consolidating at a fast What do you see for the future of Ⅲ Lourdes Nursing Home, Wa- Modern Healthcare, a sister publi- jects back. We owned 30 acres in pace. Spectrum Health is the only Beaumont? terford Township: Construct ad- cation to Crain’s Detroit Business. Commerce Township and started super-regional in Michigan. We I don’t wish 2008 on anybody, dition to existing facility with 50 Howard, 63, recently talked with infrastructure, but physicians decided we needed to grow like but it helped to focus us on what nursing home beds, $15 million. Senior Reporter Jay Greene about were nervous. They didn’t want to Spectrum, Cleveland Clinic and Ad- we needed to do for the future, es- Ⅲ Special Tree Macomb Center, his tenure as a Beaumont trustee commit to long-term leases. When vocate Health of Chicago. pecially with health care reform Macomb: Construct 45,500- square-foot facility and begin and the pending $6.4 billion merg- it was time to move forward, Hen- We looked at for-profit and non- coming. We feel we are on the right operating 39-bed nursing and reer with Henry Ford. ry Ford opened Henry Ford West profit systems from all over the road with a terrific partner like A longer version of this inter- Bloomfield Hospital and St. John’s state and country. We came up habilitation center for traumat- Henry Ford and will form a model view that includes comments from opened Providence Park Hospital. with a list of 16, and most everyone ic brain and spinal cord in- system with our physicians, med- Beaumont CEO Gene Michalski can With (the proposed merger responded. We interviewed many juries, $9.8 million. be found at crainsdetroit.com. with) Henry Ford, we will have the people and got to a short list and ical education, a growing network Ⅲ St. Joseph Mercy Hospital, ambulatory care network we need. then picked Henry Ford as our of ambulatory care centers and Ann Arbor: Replace nine outpa- What has been your biggest chal- most like-minded partner. our hospitals. Beaumont has al- tient operating rooms and con- lenge as a member of Beaumont’s How has the Beaumont’s debt af- Under health care reform, you ways had a target on our backs. We vert space in newly constructed board of directors and as chairman? fected its growth strategy? need to know how to manage risk. feel we are in the right position for addition to the inpatient surgery We had a national financial Health care is a little bit of an Who better to do it than someone the next five to 10 years. pavilion, $29.3 million. meltdown in 2008. Lehman Broth- arms race. Everybody is jealous of ers collapsed. Access to the bond everybody else. We businesspeople market was limited. We always on the board step in and we have to had growth and more growth. be a little more realistic about our Some managers got promoted be- plans. In 2007 and 2008, patient vol- cause they could build parking ume went down for the first time in Your Expert in No-Fault & garages faster than anyone else. a long time. Lots of people became Beaumont had $400 million of uninsured and payments dropped. projects going at the time. We ac- When the markets crashed in Motor Vehicle Accidents quired Bon Secours Hospital in 2008, we incurred a lot of debt. Grosse Pointe, we had ambulatory When the markets opened back up, Maybe you already know Advomas is the premier Michigan firm centers, an emergency department we grabbed an extra $300 million. It expansion in the Royal Oak hospi- is tough debt to pay off. The terms assisting hospitals with securing a payer source for uninsured tal going. We just announced a new don’t allow us to pay it off early.

Leading with Results Leading patients. Did you know that we are also experts in No-Fault medical school with Oakland Uni- But the team put a great plan to versity and we planned a $100 mil- improve operational performance. eligibility for motor vehicle accidents? lion proton beam (cancer) center. Our EBIDTA (earnings before inter- System boards traditionally est, depreciation, taxes, and amorti- Our insurance team has a 70% success rate and we guarantee were hands-off operations. But zation) margins are very good, 11 everybody rolled up their sleeves percent to 12.6 percent from 7 per- the highest return on investment! and got involved in how to manage cent. Our working cash flow is good our cash properly. and is helping to pay off our debt. Since 1986, over $200 million in no-fault charges have been In 2009, we cut $350 million in costs out of the system. We in- Was the decision to purchase the for- approved for our hospital clients. Our insurance team has over creased our profits in 2009, 2010 and mer Bon Secours hospital a wise one? 200 years of combined experience to ensure that our clients and their 2011. Cash flow has improved the We wanted to be on the east side. last three years. With 2012 closing, It expanded our footprint to spread patients receive the maximum benefits to which they are entitled. once the audit is completed, we will costs around, gave us a new mar- have our best financial year in our ketplace and helped us further our To learn more, please visit history ($109 million in net income, ambulatory strategy. advomas.com or call 248.989.4200. including $58 million on operations, At the time, employees wished we on revenue of about $2.2 billion). hadn’t bought that because we had Even more important, the sys- to freeze pay and do some layoffs in tems we have put in place with the 2008. But now we look back and it 335 East Big Beaver Epic electronic medical record sys- was a good decision because it had Suite 100 tem — health systems come to us terrific community assets and Troy, MI 48083 for advice — we are well posi- added additional physician network tioned for the future. with feeders to Troy and Royal Oak. We put some projects on hold. But four or five years later, we How much input has the board had look back and see we set a great into quality improvement? course of action. Our previous chair, Tom De- nomme, took an amazing step five What projects did you put on hold? years ago. He recognized health care Three big projects were a new reform is coming and we would be 20130311-NEWS--0018-NAT-CCI-CD_-- 3/8/2013 9:51 AM Page 1

Page 18 CRAIN’S DETROIT BUSINESS March 11, 2013 CALENDAR

Michigan; David Sherbin, senior vice gional Chamber. Informal network- ViVon Chapter of ABWA. Dinner TUESDAY president, general counsel, secretary ing. Joe Muer Seafood, Detroit. Free and networking. DoubleTree Hotel MARCH 12 and chief compliance officer, for DRC members. Contact: Marianne PEOPLE, PROFIT, PROGRESS of Novi. $18.50. Contact: Holly Heng- Delphi Automotive PLC; John Alabastro, (313) 596-0479; email: mal stebeck, (734) 634-8383; email: To Sell or Not to Sell? That’s the $363 Bonadonna, director, business devel- [email protected]; website: HR CONFERENCE IN NOVI [email protected]; website: Million (Section 363) Bankruptcy opment, Chrysler Group LLC; and oth- www.detroitchamber.com. www.abwa-novi.org. Question. 7-9:15 a.m. Association for The American Society of Employers ers. Glen Oaks Country Club, Farm- hosts a day of workshops and Corporate Growth Detroit, Turn- ington Hills. $25 ACG/TMA mem- around Management Association De- bers, $45 nonmembers. Contact: Manufacturers Networking Event. 5-7 networking for human resources THURSDAY troit chapter. Panel discussion of why www.acgdetroit.org. p.m. Seco Tools, Sterling Heights Re- professionals at People, Profit, the 363 sale process is increasingly gional Chamber of Commerce & In- Progress 2013, 7:15 a.m.-4 p.m. MARCH 14 used in asset dispositions over Chap- dustry, Qualified Consulting, WJG March 14 at the Suburban ter 11 bankruptcy plans. With Phillip Small Business: Unlocked – Connec- Business Concepts. For suppliers and Collection Showplace, Novi. Got a Business Idea? Learn How to Shefferly, bankruptcy judge, state of tions & Cocktails. 5-7 p.m. Detroit Re- manufacturing representatives. Seco Validate Its Potential. 8-9:30 a.m. Tech- Keynote speakers are Ryan Estis of Town. With W. David Tarver, author of Tools Headquarters, 2805 Bellingham Ryan Estis & Associates Drive, Troy. Free. Contact: Thom Kre- Proving Ground: A Memoir, which itler, (248) 470-9320; email: management consultants, traces an African American-owned [email protected]. Minneapolis, and Jeff DeGraff, high-technology business from con- business consultant and clinical cept to basement startup to multimil- professor of business lion-dollar international success. WEDNESDAY administration at the Ross School TechTown, Detroit. $25. Contact: Di- of Business, University of ane Love-Suvada, (313) 483-1302; email: MARCH 13 Michigan. [email protected]; website: http://validatemar14.eventbrite.com. Leadership Breakfast. 8-10 a.m. Troy, Four separate breakout sessions Rochester Regional and Auburn Hills will focus on engagement and chambers of commerce. With Roberta retention, operational compliance, Leadership Detroit Class XXXV Infor- Zenn Phillips, executive director, Cen- legal updates and strategic HR mational Breakfast. 8:30-10:30 a.m. De- ter for Women in Business, U.S. Cham- leadership. troit Regional Chamber. Skyline Club, ber of Commerce, and others. Mar- Session topics include the impact Southfield. Free. Contact: Daniel Piep- riott Centerpoint, Pontiac. $25 of the new immigration reform on szowski, (313) 596-0315; email: dpiep members of the Troy, Rochester or [email protected]; website: Auburn Hills chambers; $30 nonmem- employers, what employers need www.detroitchamber.com. bers; $5 extra after March 11. Contact: to know about the Affordable Care Rachael Jay, (248) 853-7862; email: Act, and building a culture of Detroit Economic Club Luncheon. [email protected]; web- recognition using technology and 11:30 a.m.-1:30 p.m. Detroit Economic site: www.auburnhillschamber.com. social media. Club. With Stuart Hoffman, senior Tickets for ASE members are vice president and chief economist, World Leadership Day Symposium. 5-8 $225; for nonmembers, $255. PNC Financial Services Group. Westin p.m. Michigan Association for Female For more information, call (248) Book Cadillac, Detroit. $45 members, Entrepreneurs. With Allison Mc- 353-4500, or visit $55 guests of members, $75 nonmem- Clintick, CEO, FlightLead leadership www.aseonline.org. bers. Contact: (313) 963-8547; email: training, and others. Featuring [email protected]; website: woman leaders and entrepreneurs, Generational Diversity in the Work- www.econclub.org. and the presentation of the Young place From the Y Perspective. 6-8:30 Leaders Award. Redford Township p.m. Novi Oaks charter chapter of District Library. $20. Contact: Tonya American Business Women’s Associa- UPCOMING EVENTS McNeal-Weary, (866) 490-6233; email: tion. With Lisa Montross, career de- Detroit Economic Club Luncheon. [email protected]; website: velopment representative, Ross Med- 11:30 a.m.-1:30 p.m. March 18. With www.mafedetroit.org. ical Education Center, and president, Gary Shapiro, president and CEO, Con- sumer Electronics Association and an active leader in the development, launch and marketing of HDTV. Townsend Hotel, Birmingham. $45 members, $55 guests of members, $75 nonmembers. Contact: (313) 963-8547; email: [email protected]; website: www.econclub.org.

40th Annual Women’s Recognition Luncheon. 11 a.m.-2 p.m. March 22. Henry Ford Community College. Sup- porting Student Outreach and Support, and the Student Emergency Fund. With Debbie Dingell, president, D2 Strategies, and chairwoman, Manufac- turing Initiative of the American Auto- motive Policy Council; Brenda Lawrence, mayor of Southfield; and others. Henry Ford Community Col- lege, Dearborn. $40. Sponsorships range from $100 to $2,500 and are due by March 12. Contact: (313) 317-1700; website: www.hfcc.edu/news/items/ 1361478333

Pancakes & Politics: A Speakers’ Fo- rum. 7:30-9 a.m. March 28. Michigan Chronicle. With Gov. Rick Snyder. De- troit Athletic Club. $75. Contact: www.michronicleonline.com.

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March 11, 2013 CRAIN’S DETROIT BUSINESS Page 19 BUSINESS DIARY

ACQUISITIONS health and long-term care systems. based in Jamaica, N.Y., opened a base A18 to 38505 Country Club Drive, World, a multimedia resource in its Website: www.pvm.org. at Willow Run Airport, Ypsilanti. Farmington Hills. Telephone: (248) National Geographic Virtual Library The Suburban Collection acquired the Crewmembers and dispatcher train- 489-8300. Website: www.duffeypet product line. automotive franchise for HHM, formerly known as Hersha Hos- Fisker ing will be conducted at Kalitta Air’s rosky.com. Michigan from the Serra Automotive pitality Management, has assumed management of the 238-room Sheraton training facilities at Willow Run, and NEW SERVICES Group. Fisker of Troy has begun opera- aircraft maintenance will be per- tions at the Troy Motor Mall, 1755 Detroit Novi and plans to renovate all NEW PRODUCTS Ciena Healthcare Management Inc. guestrooms and public spaces. Web- formed at Kalitta Maintenance in Os- Maplelawn Road, Troy. Website: The Gale Group Inc., Farmington Hills, launched its new congestive heart fail- sites: www.hhmhospitality.com, coda. Website: www.baltia.com. www.suburbancollection.com. part of Cengage Learning Inc. and a ure subacute program at its Boule- www.sheratondetroitnovi.com. BorgWarner Inc., Auburn Hills, Taubman Centers Inc., Bloomfield publisher of research and reference vard Temple Care Center, 2567 Brogan & Partners Advertising Consul- opened another production plant at its resources for libraries, schools and Hills, acquired an additional 49.9 per- W. Grand Blvd., Detroit. Telephone: tancy Inc., Birmingham, added campus in Ningbo, China, to meet in- businesses, launched National Geo- cent interest in International Plaza, (313) 895-5340. Website: www.cienafa DenteMax LLC, Southfield, which man- creasing demand for fuel-efficient sys- graphic: People, Animals, and the Tampa, Fla., increasing its ownership cilities.com. ages the nation’s largest leasable dental tems and technologies. Website: in the center to 100 percent, and also PPO network, to its group of health care www.borgwarner.com. agreed to acquire an additional 25 per- MinuteClinic opened a walk-in clinic cent interest in Waterside Shops, clients. Websites: www.brogan.com, www.dentemax.com. inside CVS Pharmacy, 17120 Kercheval Naples, Fla., bringing its ownership to Ave., Grosse Pointe Farms. Minute- 50 percent with remaining interests Clinic has a clinical affiliation with Changing the odds owned by an affiliate of the Forbes Co. Henry Ford Health System and is open Website: www.taubman.com. EXPANSIONS seven days a week. Telephone: (866) Conestoga-Rovers & Associates Inc. SVS Vision Optical Centers, Mt. 389-2727. Website: www.minute in our clients’ favor acquired the remaining 50 percent of Clemens, opened an optical center in clinic.com. affiliated company Inspec-Sol Engi- the Westgate Shopping Center, 2555 Warner Norcross & Judd LLP, South- neering Inc., Plymouth. Inspec-Sol is Jackson Ave., Ann Arbor. Telephone: field, opened a Great Lakes Bay Re- now operating as Conestoga Rovers & (734) 239-8900. Website: www.svsvi gion office in Midland. The new office Associates in the United States. Web- sion.com. is the seventh for the firm. Website: site: www.craworld.com. Brinks Hofer Gilson & Lione PC, a na- www.wnj.com. tional intellectual property law firm, B. Nektar Meadery, Ferndale, opened CALL FOR NOMINATIONS opened an office at 300 River Place a location at 1481 Wordsworth St., The Community Foundation for South- Drive, Suite 1775, Detroit. Telephone: Suite B, Ferndale, (313) 744-6323. Web- east Michigan is accepting nomina- (313) 393-5400. Website: site: www.bnektar.com. tions for the 2013 Mariam C. Noland www.brinkshofer.com. Sophia’s Giftique, Dearborn, opened a Award for Nonprofit Leadership, Custom Biogenic Systems, Romeo, second location at 3031 W. Grand which recognizes a nonprofit presi- purchased a 110,000-square-foot indus- Blvd., Suite 126, Detroit. Telephone: dent or CEO in Southeast Michigan trial facility at 74100 Van Dyke Road, (313) 600-2754. Website: www.sophias whose service exemplifies the impor- Bruce Township. The purchase more giftique.com. tance of nonprofit leadership to the in- than doubles its warehouse capacity. dividual’s organization and also to the Telephone: (586) 331-2600. Website: wider nonprofit community. Nomina- www.custombiogenics.com. MOVES Securities fraud and shareholder rights tions must be made through the The Bradley Co., West Bloomfield Dearborn Music from 22000 Michigan foundation’s online application at Automotive supplier disputes Shareholder and partnership disputes Township, a promotional marketing Ave. to 22501 Michigan Ave., Dear- www.cfsem.org by . The award April 1 company, opened an office in Fort born. Telephone: (313) 561-1000. Web- Commercial and business lawsuits Family law and probate litigation will be announced at the June meeting Lauderdale, Fla. Website: www.the site: www.dearbornmusic.com. of the foundation’s board of trustees. bradco.com. The organization will make a one- Duffey Petrosky, a marketing agency, Baltia Air Lines Inc., a startup airline 248-841-2200 time grant of $10,000 to the recipient’s from 39303 Country Club Drive No. nonprofit organization to allow him millerlawpc.com or her to attend professional continuing education, take a sabbatical for career rejuvenation, or engage in phil- anthropic leadership activities. CONTRACTS Duffey Petrosky, Farmington Hills, was chosen as the marketing agency of record by Falcon Waterfree Tech- nologies LLC, Los Angeles, a designer and manufacturer of environmentally sustainable commercial bathroom products. Website: www.duffeypet rosky.com. Thomas A. Duke Co., Farmington Hills, was awarded property management of the Fidelity Investor Center, 43420 Grand River, Novi, a 6,660- square-foot single-use retail building, and the Pine Ridge Shopping Center, 24255-24299 Novi Road, Novi. Website: www.thomasduke.com. Creative Edge Nutrition Inc., Madison Heights, a nutritional supplement Did you kknow?? company, secured a financing contract with Ashford Finance LLC, New York City. Under the contract, Ash- The Health Care industry drives 1/6 of the U.S. economy. ford Finance will provide an initial re- volving line of credit of $2 million in ® purchase order financing and provide additional financing for accounts re- TCF Bank in Michigan has lent over $100 million to ceivable and transactional working capital. Website: www.cenergynutri tion.com. health care related businesses. Presbyterian Villages of Michigan,

Southfield, was selected to participate ® in the National Learning Collabora- Did you know that TCF Bank : tive to create strategies that improve quality of life for senior residents s Has health care banking experts on its team? while producing cost savings to the s Is committed to growing its loan portfolio in the health care segment? DIARY GUIDELINES s Finances medical practices? s Finances long term care projects? Send news releases for Business Diary to Departments, Crain’s s Finances the senior-living industry? Detroit Business, 1155 Gratiot Ave., Detroit, MI 48207-2997 or send e-mail to cdbdepartments@ crain.com. Use any Business Diary To learn more, contact: item as a model for your release, and look for the appropriate Janet Pasco at 248-740-1622 or [email protected] category. Without complete information, your item will not run. Photos are welcome, but we cannot guarantee they will be used. ©2012 TCF National Bank. Member FDIC. www.tcfbank.com 20130311-NEWS--0020-NAT-CCI-CD_-- 3/8/2013 10:43 AM Page 1

Page 20 CRAIN’S DETROIT BUSINESS March 11, 2013 Job Front PEOPLE

ADVERTISING global client partner for SAP Ameri- ca, Southfield. Ryan Linder to senior vice president, IN THE SPOTLIGHT chief growth officer, Doner Partners Plex Systems Inc., Troy, a provider LLC, Detroit, from executive vice pres- LAW of cloud enterprise resource ident, chief marketing and growth officer, Zimmerman Advertising, Fort planning software for Lauderdale, Fla. manufacturers, has named ENERGY Jason Blessing CEO. He Joyce Hayes Giles to assistant to the succeeds Mark chairman and senior vice president of Symonds, who public affairs, DTE Energy Co., Detroit, left with the from assistant to the chairman and se- aim to help nior vice president of customer ser- early-stage vice. Also, Jennifer Whitteaker to companies with manager, corporate contributions and community involvement, from region- growth Hokenstad Peck strategies. al manager; and Karla Hall to manag- Blessing Shelly Hokenstad and Randall Peck to Blessing, 41, er, civic affairs, from manager, corpo- shareholder, Howard & Howard Attor- rate contributions and community was senior vice president of neys PLLC, Royal Oak, from associate, involvement. application development at Oracle intellectual property law. Corp’s headquarters in Redwood Daniel Adams to partner, litigation de- Shores, Calif. GOVERNMENT partment, from associate, Honigman Emily Doerr to director, community He earned a bachelor’s degree in Miller Schwartz and Cohn LLP, De- and economic development, City of organizational studies at the troit. Also, Meghan Covino to partner, Oak Park, from small business pro- University of Michigan. business immigration practice group, grams manager, Detroit Regional from associate, and Crescent Moran to Chamber, Detroit. partner, corporate department, from of Michigan Comprehensive Cancer associate. Also, Jennifer Hetu to partner, intellectual property department, HEALTH CARE Center, Ann Arbor, from interim med- from associate, Honigman Miller ical director. Paul Rogers to care center clinical Schwartz and Cohn LLP, Bloomfield manager, Angela Hospice, Livonia, Hills. INFORMATION TECHNOLOGY from home care nurse. Diana Raimi to partner, Jaffe Raitt Kathleen Cooney, M.D., to deputy di- Tom Hardy to vice president of SAP Heuer & Weiss P.C., Ann Arbor, from rector for clinical services, University sales, Secure-24, Southfield, from principal, Moran, Raimi, Goethel & Karnani PC, Ann Arbor. Lavinia Biasell and Mark Plaza to shareholder, Maddin, Hauser, Wartell, Roth & Heller PC, Southfield, from associate. Ronald Reynolds to shareholder, Ver- ESTATE PLANNING AFTER THE cruysse Murray & Calzone PC, Bing- ham Farms, from shareholder, Berry, Reynolds & Rogowski, Farmington Hills. NONPROFITS April Fidler to ex- CLIFF ecutive director, FISCAL Macomb County Rotating Emer- gency Shelter Team, Roseville, from shelter man- Attend one of these FREE seminars and you will find out… ager. Sari Cicurel to director, communi- ■ How to avoid a probate estate ■ How the new Estate Tax Law affects ty relations, Michigan Jewish Fidler ■ estate plans Sports Founda- How to simplify current plans tion, Walled Lake, from public relations specialist, ■ based on new laws How to protect and preserve children’s inheritance Berman Theatre for the Performing Arts, West Bloomfield Township. NOVI NOVI RETAIL When you attend one of these seminars, you will have Wendy Batiste-Johnson to general manager, The Mall at Partridge Creek, Tuesday, March 19 Wednesday, March 27 the opportunity to sign up for a FREE, one-half hour, Clinton Township, from assistant general manager, Twelve Oaks Mall, 2:00 p.m. - 4:00 pm 5:30 p.m. - 7:30 pm private informational interview with an attorney to Novi. Sheraton Detroit Novi Hotel Sheraton Detroit Novi Hotel discuss setting up your personal estate plan. 21111 Haggerty Road 21111 Haggerty Road Attending one of these seminars does not create a client-attorney relationship. PEOPLE GUIDELINES Announcements are limited to management positions. Send submissions to Departments, RSVP – Call 855-882-7686 (24-hour seminar reservation line) or visit www.varnumlaw.com/events/EP Crain’s Detroit Business, 1155 Seating is limited. Refreshments will be served. Gratiot Ave., Detroit, MI 48207- 2997, or send e-mail to [email protected]. Releases must contain the person’s name, new title, company, city in which the person will work, former title, former company (if not promoted from within) and former ■ Metro Detroit ■ Grand Rapids ■ Kalamazoo ■ Grand Haven ■ Lansing city in which the person worked. Photos are welcome, but we cannot guarantee they will be used. 20130311-NEWS--0021-NAT-CCI-CD_-- 3/8/2013 4:12 PM Page 1

March 11, 2013 CRAIN’S DETROIT BUSINESS Page 21 Skills gap: Report touts cooperation JOB FRONT ■ From Page 1 cording to the WIN report, “Work- MANAGEMENT ing Smarter; Understanding jobs WHERE THE IN-DEMAND JOBS ARE and talent in Southeast Michigan.” GREAT LAKES FABRICATORS & ERECTORS ASSOCIATION The region has a supply-and-de- Some of the most in-demand jobs by sector in Southeast Michigan with median hourly wage: mand disconnect, especially in job Executive Director segments such as health care, in- Health care Computer user support This is a full time position reporting to the president with ultimate responsibility to the formation technology and manu- specialist: $21.62 Board of Directors. Primary responsibility is for the overall management of the association Registered nurse: $32.12 facturing. Web developer: $27.76 in all matters: Administrative, Financial, Labor Relations, Industry Promotion/Marketing Physical therapist: $36.88 The report is exemplified by the Information security analyst: The Main Job Functions Include: day-to-day struggles companies Licensed practical and licensed $27.76 •Managing Day-to-Day operations of the association vocational nurse: $21.93 have to fill positions. Computer network support •Develop and maintain strong working relationships with local unions Gov. Rick Snyder said the issue Medical assistant: $13.32 specialist: $21.62 •Develop and maintain annual budget for review by Board of Directors •Represent the association in other industry associations as directed by the board stems from a growth in technolo- Nursing assistant: $12.10 Computer network architect: gy, specialization in the workforce Occupational therapist: $32.27 $27.76 Preferred Qualifications and the inability to translate that Health technologist and Computer and information •Experience in Steel Industry •Good communication and presentation skills to the education system. technician: $20.82 systems manager: $49.09 •Experience in Labor Relations/Labor Law “If you go back, when I was com- Pharmacist: $53.63 Computer occupations, other: •Master of Science in Business Administration or Equivalent in experience ing out of school, you could be a Medical records and health $32.58 Please send resume to and qualifications to: [email protected] generalist. There were lots of jobs information technician: $17.03 Manufacturing engineers and employers would take people Home health aide: $10.10 without specialized training,” he Medical and clinical laboratory and designers TECHNICAL said. “Now, I don’t think the edu- technician: $15.38 Mechanical engineer: $43.12 Call Us For Personalized cational sector was able to recog- Health diagnosing and treating Electrical engineer: $39.81 Information Systems Service: (313) 446-6068 nize the change … as a society we practitioner: $31.10 Commercial and industrial sort of missed the boat.” designer: $37.34 Architect Information technology HP Enterprise Services, LLC is accepting FAX: (313) 446-1757 Snyder said needs are forcing Industrial engineer: $40.86 employers to be more open about Applications software resumes for Information Systems Architect Manufacturing engineer: $41.45 in Pontiac, MI (Ref. #ESPONISA31). Architect E-MAIL: [email protected] their challenges in hiring and that developer: $37.07 Chemical engineer: $41.11 effective information systems solutions that INTERNET: educators, government and the Computer programmer: $31.93 address the customer’s business problems, Civil engineer: $33.46 private sector need to work togeth- Computer systems analyst: needs and opportunities, in a manner consistent www.crainsdetroit.com/section/classifieds er to share information for a better $35.96 Mechanical drafter: $24.67 with the company’s strategic and business goals. Mail resume to HP Enterprise Services, See system. The state is also hosting Database administrator:$34.96 Materials engineer: $36.96 LLC, 5400 Legacy Drive, MS H1-6F-61, an invitation-only talent summit Systems software developer: Validation engineer: $41.45 Plano, TX 75024. Resume must include Ref. #, Crainsdetroit.com/Section/Classifieds March 18-19. $39.13 Electronics engineer: $39.30 full name, email address & mailing address. No phone calls. Must be legally authorized to work for more classified advertisements Network and computer systems Computer hardware engineer: in U.S. without sponsorship. EOE. Hot jobs segments administrator: $33.04 $46.98 The health care industry, which overtook manufacturing as the largest employer in Michigan fol- Snyder to host economic summit at Cobo REAL ESTATE lowing the recent automotive industry collapse, had 29,800 available Gov. Rick Snyder will host the Chicago; Mike Finney, president jobs in 2012 — or one job posting for 2013 Governor’s Economic Summit and CEO of the Michigan Economic AUCTIONS OFFICE BUILDING every 10 employed in the industry, March 18-19 at Cobo Center in De- Development Corp.; and Doug Roth- LIVONIA OFFICE BUILDING according to the WIN report. troit. well, president and CEO of Busi- 120,000 GBA 400 Car parking, 14% occupied. Registered nurses, physical Great upside potential. Giveaway price $850,000 The invitation-only event in- ness Leaders for Michigan. WATERFORD INDUSTRIAL BUILDING therapists and licensed practical cludes Michigan business leaders, Mary Kramer, group publisher 45,000 sq.ft $799,000 and licensed vocational nurses are educators and economic develop- for Crain Communications Inc. and WESTLAND 9 HOLE GOLF COURSE Attention Investors! 11 Houses Banquet Hall & Restaurant, 59 acres most in demand in health care. ment representatives, gathered to Crain’s Detroit Business, will em- Several currently rented. All have rental Needs major remodeling, 2 homes on site Thanks to the resurgence of the examine hiring trends and short- cee the event. potential. Up to 4BR, 1,400±sf houses. 24,000 sq.ft $575,000 automotive industry, the need for WARREN INDUSTRIAL BUILDING falls. Attendees will also have oppor- Lansing, MI 7,000 sq.ft $145,000 skilled trades workers and engi- Scheduled speakers include tunities to participate in break-out MUSKEGON MICHIGAN neers is on the rise, up 94 percent 11 ONLINE-ONLY 130 Homes, 100% occupied $3.65M Snyder; Jim Clifton, chairman and sessions by industry and region. Call Bill Mcmachen 586-915-4441 and 103 percent since 2007, respec- CEO of Washington, D.C.-based To request an invitation, go to Email:[email protected] tively, according to the WIN report. Gallup Inc.; Paul Traub, business michiganadvantage.org and click AUCTIONS In 2012, there were 41,500 job economist at the Detroit branch on the link to the summit. The openings in manufacturing. Me- of the Federal Reserve Bank of event costs $150 per person. March 12th & 13th MARKET chanical and electronics engineers See Website for Auction & Inspection Times, are the most needed jobs in the in- Photos, and More Information! dustry, with a median wage of in their jobs longer, which likely tinues to struggle for skilled labor- PLACE $43.12 per hour and $39.81 per exacerbated skills shortages, the ers as orders rise, thanks to the au- hour, respectively. report said. tomotive resurgence, said Dave FINANCIAL SERVICES But it’s information technology “There are warning signs from Gifford, purchasing manager. He (517) 676-9800676-9800 that’s seen the largest boom in our aging population,” Katz said. said the older generation of work- Southeast Michigan. There were “Those who are working haven’t left ers at the 30-person shop is ready- www.sheridanauctionservice.com 40,400 job postings in 2012. That’s the workforce, leaving young people ing for retirement, but there are more than half the amount of with less employment experience, not enough skilled workers to re- workers in the industry in South- and as we’re hitting a job growth, place them. The Crain’s reader: east Michigan at 72,000. our young people aren’t prepared to “There are no middle-ground “We haven’t seen this big up- replace the outgoing workforce.” workers; when the training dried 26.5% influence the surge in jobs yet, but we’re seeing Stephen Spurr, an economist at up, people went into other fields,” he purchase of office/industrial an unprecedented demand for IT Wayne State University, said the sec- said. “The younger workers who are and commercial space. BUSINESSES FOR SALE workers,” said Lisa Katz, executive tors in demand demonstrate the re- not college-bound are not receiving Help them find you by director of WIN. “We really need to gion’s need to refocus the education the training that high schools used advertising in Crain’s Real Building for Sale or Lease look at this demand and see what system on math and science skills. to offer as many have cut back on Estate section. High or Low Injection Molding this means for our talent sector and “A lot of college graduates used manufacturing programs due to the 35 Ton Cranes whether we can support it.” to become lawyers if they weren’t economy and interest.” 313.446.6068 • FAX: 313.446.1757 96,000 sq. ft. The top demand in local IT is for oriented in math or science, but But Katz said there are steps to E-Mail: [email protected] applications software engineers, the law industry has seen such a right the ship and orchestrate a Morenci, MI computer programmers and com- contraction,” Spurr said. “That’s collective comeback for the re- Call 317/523-6484 puter systems analysts, according affected a lot of career choices, so gion’s jobs market — and it starts to the study. the more beefing up we can do in with cooperation. WIN is already BUSINESS OPPORTUNITIES Katz said the region’s skills gap the education system here for the working with area human re- ****ENTREPRENEUR’S**** is the pin to burst the growth bub- jobs that are out there, the better sources executives in the health Interested in Dunkin Donuts, 7-Eleven or Tim Hortons ble, unless action is taken. we are serving our students.” care industry to share real-time Etc, in North Macomb County Van Dyke Ave. Let’s Talk... Pete PJ’S Property (586) 413-7383 The declining labor force is also data, Katz said. to blame for difficulty in filling “Demand is so high and if we Cause and effect openings, the study said. Michi- don’t address it, it’s going to un- Call or email today for information WIN attributes the skills gap to gan’s labor pool declined by approx- dermine our economic recovery.” on a custom advertising plan! educational shortfalls and an ag- imately 200,000 people over the past Dustin Walsh: (313) 446-6042, [email protected] ing workforce. Due to the econom- 10 years, due to economic upheaval. [email protected]. Twitter: 313.446.6068 ic downturn, aging workers stayed Romeo-based Mac-Mold Inc. con- @dustinpwalsh 20130311-NEWS--0022,0023-NAT-CCI-CD_-- 3/8/2013 4:10 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS March 11, 2013 As cyberattacks grow, state, biz mount strategic defense

BY CHRIS GAUTZ CAPITOL CORRESPONDENT

Last fall, it was South Carolina, where computer hackers gained access to the state’s government database and about 3.6 million So- cial Security numbers. A few months before that, it was Utah, where hackers pried their way into the files of about 800,000 Medicaid recipients. In Michigan, there have been no major cybersecurity breaches the state is aware of, but the threat is real, said Dan Lohrmann, chief security officer for the state. “We’re being attacked every single day,” he said. A group of about two dozen tech- nicians works to combat about 187,000 cyberattacks each day in a secure office affectionately re- ferred to as “the bat cave.” But a larger effort has been ongoing for the past two years behind the scenes with state officials and the chief information and security officers from a diverse group of largely Southeast Michigan businesses, including DTE Energy Co, BorgWarner Inc., Penske Corp., Plante Moran PLLC, Spectrum Health and Blue Cross Blue Shield of Michigan. They have been sharing information and generating a disruption response plan in the event of a cyberattack like those in other states or something much worse that would affect not just state government, but possibly the entire KEVIN FOWLER state. From a massive Internet out- Dan Lohrmann is chief security officer for the state of Michigan. He says age, to the loss of access to the elec- cybersecurity is a top priority of Gov. Rick Snyder’s administration. tric grid, or a specific business sector being targeted, the group is statewide or in a large region and would also be in a position to offer discussing a range of ways to re- affects more than one company. An- assistance to a company that is a Level One Bank’s new headquarters spond. other factor would be whether the subject of the attack. in Farmington Hills. Cybersecurity is a top priority attack could cause a significant fi- “We want to have a framework of Gov. Rick Snyder’s administra- nancial impact or affect a critical in place for how we would work to- tion, Lohrmann said. need such as electricity or water. gether to resolve that issue,” said Michael Wilson, territory ac- At that point, the governor Jim Beechey, cybersecurity man- count manager for Troy-based Cre- would have clear parameters to de- ager for Jackson-based CMS Energy ative Breakthroughs Inc., which pro- clare a state of emergency, much Co., who is also part of the team. vides IT security and network as one would in the event of a ma- If such a regional or statewide solutions across the country, said jor forest fire, flood or drought. attack was occurring, the busi- California and Massachusetts The plan will lay out ways in nesses in the group would contact Born here. Based here. have systems in place that Michi- which the state would respond to other businesses in their sector to gan has modeled itself after. And the attack and communicate to the make them aware and spread the now other states are looking at public about what is going on. word, said Doug Copley, informa- Building our Bank here. Michigan as a model, he said. Raj Patel, a partner at Plante tion security officer for Royal Oak- “We’re quite impressed with the Moran who leads the company’s IT based Beaumont Health System. outreach they are making in edu- security consulting process and is BauerFinancial 5 Star Rated Bank - ∫ Top 50 Michigan Companies to cating not only the commercial a member of Lohrmann’s group de- What’s at risk? Watch - Edward Lowe Foundation ∫ Community Lender of the Year - SEM space but private citizens as well,” veloping the state plan, said indi- Wilson said. vidual companies can typically re- “What the bad guys are trying to REsource Capital ∫ Mergers and Acquisitions Award - Crain’s Detroit “Michigan is certainly a national pair their own networks if they get to is anything that is going to Business ∫ Top 20th Percentile of U.S. Banks for Financial Performance leader,” said Doug Robinson, execu- came under attack, but they under- make them money,” Lohrmann - Independent Community Bankers of America tive director of the National Associa- stand a larger attack would re- said. tion of State Chief Information Officers. quire a collective response. So the state’s Treasury Depart- “There are very few states that are “We don’t want to be caught ment —where tax records are kept actively and collaboratively work- with no plan,” Patel said. — would be a major target, but lots ing with the private sector.” If hackers were able to disable of state services use credit cards, the Internet in Southeast Michi- Lohrmann said, so hackers could gan, for example, Patel said, one of gain financially from gaining ac- Forming the plan the first orders of business would cess to a variety of departments. Lohrmann said the response be to bring utility services back The state keeps plenty of health plan, which will be made public online. And with this plan, there records, as well as driver’s records later this spring, involved the in- would be a team of professionals at and personal information, includ- put from officials at about a dozen the ready to assist in that. ing Social Security numbers. companies and representatives The plan also sets up a phone Another type of attack, which from local units of government. tree of sorts, so that if a company the state’s main website was vic- One of the first tasks was to de- or the state detects an attack, those tim to last fall, is called denial of fine a cyberattack, which the on the team know whom to contact service, in which hackers flood group generally considers to be a to discuss the severity of the prob- disruption or attack that occurs lem. Those companies not affected See Defense, Next Page 20130311-NEWS--0022,0023-NAT-CCI-CD_-- 3/8/2013 4:10 PM Page 2

March 11, 2013 CRAIN’S DETROIT BUSINESS Page 23

Gold Star: Moving HQ IT’S TIME TO NOMINATE ■ From Page 3 ENTREPRENEURS FOR SALUTE “I came to the U.S. on Dec. 4 of growth can continue. Crain’s is seeking nominations for entrepreneurs 1991,” Milstein said. “I was 16 “A business model focused on who deserve to be recognized years old. I had one suitcase and 17 new money mortgages for new for their innovation, problem- cents in my pocket.” sales is better” suited for the type solving ability or sheer Over time, he built Gold Star, of growth Gold Star has experi- relentlessness. which Milstein said now employs enced than one focused on mort- Anyone is welcome to more than 500 nationally and has gage refinancing, he said. nominate an entrepreneur, more than 40 offices, into the That’s because interest rates are including entrepreneurs fourth-biggest mortgage origina- expected to increase next year, themselves, for Crain’s tor in Michigan, based on the vol- leading fewer people to look to Salute to Entrepreneurs ume of loans. Gold Star originated renegotiate the terms of their awards. $1.2 billion in loans in Michigan in mortgages. The awards are broken out by 2011, and Milstein said it originat- The other big mortgage compa- five revenue categories ed $1.5 billion last year. nies in town are also adding staff according to size. There is He expects that figure to grow to and office space. Detroit-based also a category for social “closer to $2 billion” this year. Quicken Loans Inc. has nearly dou- entrepreneurs and one for Milstein plans to move employ- bled its number of employees to “intrapreneurs,” or people ees from its two Ann Arbor loca- more than 8,000 in Detroit, Cleve- within companies who have tions into the 330,000-square-foot land and Scottsdale, Ariz. demonstrated an building at 100 Phoenix Drive. And Troy-based United Shore Fi- entrepreneurial spirit to help “It’s one of the largest buildings nancial Services LLC has hired near- the in the Ann Arbor market, and that’s ly 500 employees since March 2011, company the bottom line,” Milstein said. “It with plans to hire another 500 in grow. gives me the room for growth.” the next year. Nomination Milstein, a 2009 Crain’s 40 under The former headquarters for deadline is 40 honoree, said the company Borders — which filed for bank- March 18. would begin the relocation in July. ruptcy protection in 2011 and later Award Milstein said Gold Star requires liquidated its assets and closed winners will borrowers to have a credit score of stores across the U.S. — was listed be profiled at least 640 — one reason the com- for $6.9 million, according to Wash- in the June pany was able to weather the eco- ington, D.C.-based real estate infor- 17 edition nomic meltdown. mation service CoStar Group Inc. of Crain’s Detroit “We did not do subprime (mort- Real estate sources said Ann Ar- Business gages),” Milstein said. bor-based Madison Property Co. pur- and Matt Farrell, executive princi- chased the now-vacant Class B recognized pal and partner at Birmingham- headquarters south of I-94 last at an awards event held on based Core Partners LLC, said Gold month. Aug. 6 at the Somerset Inn, Star’s growth and real estate needs Phone messages left with Madi- Troy. seem to be sustainable. son Property Co. last week were Questions? Contact Bill Shea “If they feel they have the busi- not returned. The registered agent at [email protected] or (313) ness model that can succeed, the for Madison Property is Gerald 446-1626. opportunity is that, being based in Spears, according to state records. Ann Arbor, they have a very Southfield-based Colliers Interna- strong labor pool to pull from,” tional Inc. was the brokerage firm Farrell said. “That should help on the building’s sale, according to them sustain that type of growth.” CoStar. Tim Ross, president and CEO of Kirk Pinho: (313) 446-0412, Royal Oak-based Ross Mortgage [email protected]. Twitter: Corp., agreed that Gold Star’s @kirkpinhoCDB Designing a Social Media Strategy for Your Company - A FREE Webinar Defense: Attacks grow ■ From Previous Page various sites and cause them to sues as they work to protect their crash. The reasons for these types networks and infrastructure. of attacks can vary, but can often Patel said Plante Moran has ben- March 20, 12:00 - 1:00 PM be just to cause disruptions and efited from the collaboration and don’t result in information loss. connections. Other countries have seen at- “It helps for everyone to come in Reserve your seat: tacks at chemical and oil compa- the room and talk about security crainsdetroit.com/events nies, and there are always fears of issues,” Patel said. “I’ve noticed a hackers gaining access to the elec- number of side benefits.” tric grid, or somehow finding a Tonya Byers, director of infor- way to do physical damage to a mation security for Blue Cross Blue power plant by gaining access to Shield of Michigan, said her compa- Discover: the network. But several in the ny has a full-fledged security pro- group say the state’s utilities have gram in place and has shared some Recap: The 10 steps to designing & executing your placed a high level of attention to- of its expertise and experiences company’s social media strategy ward their own security. with the group. For an hour on a Sunday night Copley said the big benefit for A case study of a B2C Michigan-based small business last August, the state’s site was Beaumont is the contacts he is that excels at social media down, but not many noticed be- making around the state. cause of when it occurred, “If I see a threat in our environ- A case study of a B2B Michigan-based medium-sized Lohrmann said. He said several ment, I can call (someone in the business that excels at social media other states experienced the same group) and validate if what I’m thing at that time and that a num- seeing is real and let them know ber of financial institutions have the attack could be coming their fallen victim to this type of attack. way as well,” he said. Learn how to design a social media strategy that meets your Presented by: Tracy Schmidt, Director “Clearly the threats are real,” he Lohrmann said another goal is company’s unique needs, resources and goals. We will walk of Social Media Strategy & Consulting said. “It’s prudent that we take to help residents and businesses through a 9-step road map that includes identifying your audience, Crain Communications steps. This is now man-made tech- protect themselves from cyberat- selecting the appropriate social network, training employees and nology used against us.” tacks with tool kits and tips on the creating an editorial calendar. state’s cybersecurity website. “That’s our goal, to provide a ro- The need for collaboration bust cyberdefense,” he said. Presented by: Sponsored by: Beechey said the group mem- Chris Gautz: (517) 403-4403, bers share best practices and have [email protected]. Twitter: learned that most have similar is- @chrisgautz 20130311-NEWS--0024-NAT-CCI-CD_-- 3/8/2013 4:46 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS March 11, 2013 Penske: Who will be next at the wheel when ‘Captain’ departs? ■ From Page 3 important because he has never lay out an ever-fluid map of where nitely going to be great. seemed to tire, much less age. they want the business to go. In “The old man is going to be Penske’s reputation for stamina is We have a good management structure that respect, Penske Corp.’s suc- around forever, but if the old the stuff of legend and business awe. “ cession plan is unknown outside of man’s not around forever, and he Penske is known to work 20-hour with our companies, key leadership people its board of directors. decides he don’t want to do this no days, seven days a week, not just Greg Penske, who runs Longo more, I think he says, ‘Greg, take surviving but thriving on little who know the business and help build it. Toyota in El Monte, Calif. — one of my position.’ Roger Jr. is really sleep. When Penske greets employ- ” the country’s most successful car smart, but Greg is more the car ees for the first time, he’s known to Roger Penske, Penske Corp. dealerships — said he would be in- guy, in my opinion.” hand out coins he’s had minted terested in succeeding his father, if Greg, one of five Penske chil- that on one side reads “Penske” the plan is essential for a smooth fu- the Center for Effective Organizations asked. Still, Greg considers his sib- dren, sounds and speaks like his and the year, and on the other side ture. With trusted officers, most of at the University of Southern Califor- lings and other company execu- father. Their propensities for reads, “Effort Equals Results.” them groomed internally and in nia’s Marshall School of Business, tives extremely capable. He does diplomatic discourse spiked with Talk to close co-workers and it is place, Penske hopes the company told the Los Angeles Times in an not assume the job would automat- point-driving catchphrases are sport to see who can appear for an can perpetuate success. Aug. 26, 2011, story. “Often these ically pass to offspring. strikingly similar; in phone con- offsite event first; if Penske says he That includes his ultra-success- people are iconic because they’re “We have people ... who have versations, it is easy to lose track will meet at 5:30 a.m., you’d better ful race teams — winners of 15 In- irreplaceable.” been running these businesses for of which one is speaking, until the be there at 5:15 because chances are dianapolis 500s, a Daytona 500 and a long time, and they have a lot of father circles back on a point, em- he’ll be standing there in his signa- 12 IndyCar championships — runway left,” Greg said. phasizing his vision. ture blue blazer and charcoal wool thanks to a close-knit cadre of New goals to target Roger Penske said both Greg and Greg is a ubiquitous figure at In- trousers, tie immaculately fit. young executives including Cindric, whom Penske credits son Roger Jr., who owns Penske Hon- dyCar and NASCAR races. He pre- And so it is true of him at this Penske Racing President Tim Cin- with bringing his NASCAR and In- da of Ontario and other dealerships, sents the image of a son learning at high-speed place of business. With- dric, 44; vice president of opera- dyCar shops together in 2006 to have “supported the racing side.” the hand of the master, but both in a few hours of adjourning his tions Mike Nelson, 40; and compe- stimulate cross-pollination of “Greg was instrumental in are careful to assert the Penske motorsports commitments in tition director Travis Geisler, 32. thinking and a better use of re- building the California Speedway. Corp. board’s power to select a suc- South Florida, he and his closest “You don’t plan for retirement. sources, appreciates that his boss He was president of our speedway cessor. circle of family and lieutenants — At least I’m not,” Penske said. “I’m provides the teams “a means of company, so he might be closer at Greg’s insistence that a last including executive vice presi- planning to stay active both in my which to make a decision” during the moment because of (that). But name should not be a determining dents Walt Czarnecki and Bud business and on the racing side as his visits to Penske Racing’s mas- at the present time, the only son of factor in picking a successor — a Denker — were aboard a private long as I’m healthy. sive Mooresville, N.C., facility. mine that is really directly in- point about which Cindric dis- plane that touched down in Pontiac “From a racing perspective, “He’s a great motivator,” Cindric volved (in racing) would be Jay agrees — seems in keeping with a around 3:30 a.m., giving him plenty Tim Cindric is a partner of mine said. “He wants to be there when with his IndyCar team. company whose founder ended a of time for a dollop of sleep, a show- in the race teams. He’s certainly we need him. His presence is al- “I think (Greg) has got his hands good racing career to become a er and change to fresh clothes be- developed leadership skills, and I ways useful, even if there is not an full with his businesses,” Penske businessman because the long- fore he was back at his desk. think has the authority and disci- agenda. He’s a person we want to said. “Of course he, like I do, loves term prospects were better. Refreshed enough, Penske needed pline, and I think from the stand- have here as much as possible. All to go to the races. He’s a big sup- Cindric doesn’t believe Penske to address pressing matters perti- point of the rest of the people on of our work lists get longer when he porter of the team and I think ... if could ever leave racing as long as nent to the other aspects of his most- the race team feel, he is a great is here, but that’s a good thing. we were going forward, (Greg and he is healthy, and Penske admits ly transportation-oriented business leader and would support him if I “He’s always pushing to do more, Roger Jr.) would certainly go in that while he enjoys a round of golf empire, which produces annual rev- wasn’t here now. but the main thing is we are all mo- the direction to keep the company or a day of skiing, racing is his enue in excess of $19 billion and em- “Obviously, the decision in the tivated to help him succeed, be- in the racing business as long as “weekend fishing trip.” ploys about 40,000 people. future, if I’m not here, that’ll be a cause we know that’s something we we could afford it.” Walking away from sport does different discussion, but that’s one can’t buy and something he gen- not come easy to such competitors. we try not to have to prepare for at uinely gets satisfaction from, and Ask Brett Favre or Michael Jor- ‘As long as I’m healthy’ the moment. Things happen, but we we all get satisfaction from being At the master’s hand dan. Seven-time Cup champion But there will eventually come a have a good management structure part of his success. Anytime you Rusty Wallace has a strong opin- Richard Petty, the titular head of a time when the man known rever- with our companies, key leadership can do something that’s the first for ion. Never one to fear making a race team co-owned by an invest- entially as “The Captain” and fa- people who know the business and him, that’s even more gratifying.” bold statement, the former driver ment group, said in November that miliarly as “RP” will no longer help build it. … I just hope I can be a Cindric said after winning the of the No. 2 Penske Dodge in which despite the sport’s challenges he helm his empire. That eventuality part of that for a long time.” 2012 Sprint Cup title, “I don’t think Keselowski claimed his Cup title, would remain in it “as long as my was thrust abruptly to the fore- The conundrum for Bloomfield we have any more have-to-do’s. I is adamant that Greg will eventu- toes are turned up, I guess. I never front of family and corporate mat- Hills-based Penske Corp. is that, think we have more things we ally run the corporation. thought about it. If I stopped doing ters in 2005 when doctors diag- even with a well-orchestrated suc- would like to do, but that was the “Greg. Absolutely,” Wallace what I’m doing, I’ve got to start a nosed Penske, who says he now cession plan, companies often last thing we had to accomplish, of said. “Greg’s my best friend. He new life and I don’t think I’m has a clean bill of health, with stumble after the departure of their the things we know of now in life.” and I go on vacations together. … gonna do that.” bladder cancer that forced the re- founder/innovator/spiritual force. That is not to imply, he said, that He was right there next to the old It’s a way of life the legions of moval of one of his kidneys. “In some ways, the worst job for Penske or the organization will not man on the spotter’s stand in the well-groomed, well-spoken Penske But there is a plan. With Penske, a CEO is to follow a Walt Disney or find goals to pursue doggedly. pit area. He’s all over. He runs the partisans hope not to see end. there is always a plan. Especially a Steve Jobs, because it’s almost As with all successful compa- world’s largest Toyota dealership. From the March 4 issue of Au- with the privately held Penske Corp., impossible,” Ed Lawler, director of nies, they look to the future and He’s a car guy. He gets it. (It’s) defi- toweek IAV: Engineering firm revs up to meet fuel, emissions challenges ■ From Page 3 revenue in 2012 from 2009 to $40 dard push for 54.5 mpg across au- dent and chief technology officer. growth will be limited until gas over the next 10 years, it will rein- million and plans to exceed 200 em- tomaker fleets by 2025 and new The engineering firm has seen prices rise.” vest locally. ployees by the end of this year. It emissions regulations have creat- double-digit revenue growth year But growth continues at IAV, The firm is also looking at currently employs 160. ed space for engineering firms like over year thanks to the CAFE stan- which is expanding its footprint in strategic acquisitions for future Andy Ridgway, president of IAV IAV. dards and increased interest in Southeast Michigan. growth, he said, noting potential Automotive, said the firm expects “We’ve never had the Environ- technology, Wolschendorf said. The firm is opening a second of- deals already in the pipeline. revenue to approach $100 million mental Protection Agency and Nation- While the new regulations are fice space in Auburn Hills, on Ridgway said its growth is only by the end of the decade. al Highway Traffic Safety Administra- spurring new technologies to mar- North Squirrel Road, this month limited by the ability to attract the He said the company’s growth tion involved in the business like ket in the U.S., growth is still to support new hires and better right talent. has been expedited by increased we do today,” Baron said. “We now stymied by low gas prices, he said. support of its northern suburb cus- He said IAV is focused on bring- regulation by the U.S. government have the challenge of powertrain, “In Europe, high-tech and costly tomers, including Continental Auto- ing together a creative-minded and new technologies in the auto- and there are so many technolo- tech was developed due to the fuel motive Inc., BorgWarner Inc. and its group of misfit engineers who may motive field — which accounts for gies; we don’t know the winning standards there, but also because second-largest U.S. customer, not fit into the typical top-down au- 85 percent of its revenue. pathways, and there is so much of high fuel prices,” Wolschendorf Chrysler Group LLC. tomakers and suppliers. Many of IAV’s projects, most of complexity because the industry said. It opened a battery test facility “You’ve got to give people free- which are five years to 10 years out wants to do it cost-effectively — “The incentive was on the con- in Auburn Hills in January to test from production, revolves around that’s why we’re seeing a rise in sumer, and consumers chose to the effectiveness of lithium-ion dom in this business,” Ridgway powertrain technologies, includ- these engineering firms with ex- spend money on the technology batteries. The new office will even- said. “We’re looking for people ing downsizing engines, tur- pertise.” because they saved long term on tually house 50 engineers, Ridg- who are entrepreneurs that would bocharging and alternative Auburn Hills-based FEV Inc., the fuel costs. Here, the consumer in- way said. be bored in the cube system at an propulsion, Ridgway said. North American subsidiary of centive is limited because of rela- IAV is also prepared to expand (automaker) or supplier.” Jay Baron, president and CEO of Germany-based FEV GmbH, is also tively low gas prices; the new stan- three-fold on its 7-acre property in Dustin Walsh: (313) 446-6042, Ann Arbor-based Center for Automo- seeing strong sales growth, said dards are helping push these Northville. Ridgway said if IAV [email protected]. Twitter: tive Research, said the CAFE stan- Joachim Wolschendorf, vice presi- technologies, but technology hits certain performance metrics @dustinpwalsh 20130311-NEWS--0025-NAT-CCI-CD_-- 3/8/2013 4:08 PM Page 1

March 11, 2013 CRAIN’S DETROIT BUSINESS Page 25 Shinola: Watch, bike company to add workers www.crainsdetroit.com ■ EDITOR-IN-CHIEF Keith E. Crain From Page 1 GROUP PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] ny that formed Shinola with Swiss ASSOCIATE PUBLISHER Marla Wise, (313) 446- watchmaker Ronda AG. Bedrock is 6032 or [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- owned by Fossil Inc. founder Tom Shinola employees have local, international roots 0460 or [email protected] Kartsotis. MANAGING EDITOR Jennette Smith, (313) 446- “You can teach virtually anyone 1622 or [email protected] Behind the scenes at watch- ley said. “I see great things hap- coming to the U.S. when he heard MANAGER, DIGITAL CONTENT STRATEGY Nancy to do a trade, but you can’t teach maker Shinola/Detroit LLC are em- pening, and I really do see a fu- the plant would be in Detroit (he’d Hanus, (313) 446-1621 or [email protected] them to be au- DEPUTY MANAGING EDITOR Daniel Duggan, (313) ployee faces from across the re- ture here. just watched “8 Mile”), he visited 446-0414 or [email protected] thentic and part gion, the U.S. and even the globe. Ⅲ Alex Stchekine, 39, previously Detroit and immediately felt bad SENIOR EDITOR Bob Allen, (313) 446-0344 or VIDEO of the company’s Among the homegrown em- did custom metal fabrication of about his preconceptions. [email protected] WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- Check out story,” Carr said. ployees: interior and exterior fixtures, in- “You mainly see the bad things 8158 or [email protected] the only plant The people at Ⅲ Judy Walker, who was a cos- cluding gates, bridges and about Detroit in the news,” and not SENIOR EDITOR Gary Piatek, (313) 446-0357 or Shinola “are [email protected] in Detroit where metologist for 12 years in Detroit handrails. Today he creates spe- all the city has to offer, he said. SENIOR DESIGNER Jeff Johnston, (313) 446-1608 watches are why we are before joining Shinola as a move- cial projects for Shinola’s bikes, Ⅲ Stefan Mihoc immigrated to or [email protected] made by hand, here,” he said. ment assembler. You have to be such as cast aluminum bicycle the U.S. from Romania 16 years DATA EDITOR Brianna Reilly, (313) 446-0418, crainsdetroit [email protected] And they are focused, serious and sincerely en- stands reminiscent of those of the ago. Mihoc, 45, never thought he’d WEB PRODUCER Norman Witte III, (313) 446- .com/video how the compa- be able to put his training as a 6059, [email protected] joy your job to succeed at Shinola, ’30s and ’40s to keep them upright EDITORIAL SUPPORT (313) 446-0419; YahNica ny plans to grow said Walker, 36. at exhibitions and assists with bi- watchmaker to use here, de Boel Crawford, (313) 446-0329 from a niche upstart to a recogniz- “If you don’t enjoy it, you’re not cycle assembly. said. He’d been working as a ma- NEWSROOM (313) 446-0329, FAX (313) 446- 1687 TIP LINE (313) 446-6766 able national brand. going to put (the movement) to- There’s also plenty of global ex- chinist before opening a watch re- Watch, bicycle and leather gether the right way,” she said. pertise at the watch-making opera- pair store in Auburn Hills with REPORTERS journal sales begin later this week Jay Greene, senior reporter: Covers health care, Ⅲ Willie Holley, 25, who used to be tion. Parent company Ronda AG his family. Today, he is the mas- insurance, energy utilities and the environment. at www.shinola.com. an engineering student at Wayne brought in people from its Thai- ter watchmaker and quality con- (313) 446-0325 or [email protected] Chad Halcom: Covers litigation, higher education, State University and a College for Cre- land operations to teach move- trol manager at Shinola. non-automotive manufacturing, defense Meticulous operation ative Studies building watchman. ment assembly to the Detroit team. Shinola is also tapping the cre- contracting and Oakland and Macomb counties. Ⅲ (313) 446-6796 or [email protected] At Shinola’s headquarters, on Now, as the leader of the watch Belgium-born Olivier de Boel, ativity of the College for Creative Tom Henderson: Covers banking, finance, movement assembly line, he en- 39, an electronics engineer who’s Studies. It employs CCS gradu- technology and biotechnology. (313) 446-0337 or the fifth floor of the College for Cre- [email protected] ative Studies’ A. Alfred Taubman joys the challenge of working on focused on electromechanical de- ates Meg Jannott and Zach Fox as Kirk Pinho: Covers real estate and the city of Center for Design Education in De- something so intricate — and be- vices, came to Detroit with his wife graphic and product designers, Detroit. (313) 446-0412 or [email protected] ing a part of the product launch. and infant daughter after working respectively, and has hosted sev- Bill Shea, enterprise editor: Covers media, troit, assembly employees dressed advertising and marketing, the business of sports, in scrubs and hairnets use tiny “This kind of manufacturing in Thailand for 11 years for In- eral design contests to connect and transportation. (313) 446-1626 or has come from overseas to De- terblock Luxury Gaming Products. Af- with students. [email protected] screwdrivers, tweezers and other Nathan Skid, multimedia editor. Also covers the troit; that’s a really big deal,” Hol- ter some initial hesitancy about — Sherri Welch food industry and entertainment. (313) 446-1654, tools to assemble the tiny engines, [email protected] fitting wheels the size of a grain of Dustin Walsh: Covers the business of law, auto sand onto pivots. Each movement suppliers and steel. (313) 446-6042 or Also in the mix are specialty [email protected] contains 40-100 pieces. fashion retailers like Unionmade in Sherri Welch: Covers nonprofits, services, retail A crew of nine has stockpiled and hospitality. (313) 446-1694 or San Francisco, Russo said. [email protected] about 45,000 movements since Shi- On the bike side, Shinola is es- LANSING BUREAU nola launched assembly here last tablishing additional distribution Chris Gautz: Covers business issues at the Capitol and utilities. (517) 403-4403 or [email protected]. spring, enough to hit Shinola’s with three to four bicycle shops first-year production target, watch around the country and looking ADVERTISING plant manager Olivier de Boel said. for an independent metro Detroit SALES INQUIRIES: (313) 446-6052; FAX (313) Going forward, the movements bike shop, she said. 393-0997 SALES MANAGER: Tammy Rokowski will be made as close to possible to To introduce its new products, watch assembly. SENIOR ACCOUNT EXECUTIVE: Matthew J. Shinola plans to do “a little splash Langan “We don’t want to keep too of advertising” with full-page ads ADVERTISING SALES Christine Galasso, Dale much inventory,” he said. “In the in one Detroit newspaper and Smolinski, Sarah Stachowicz CLASSIFIED SALES (313)-446-0351 future, like any other good manu- three national papers, she said. Al- EVENTS DIRECTOR Nicole LaPointe facturer/assembler, we should do ready, it’s seeing demand from them just in time.” DIRECTOR, INTEGRATED MARKETING Eric Cedo people in Detroit and Michigan SALES PROMOTION MANAGER Karin Pitrone The company won’t release rev- and from as far away as London. ASSISTANT EVENTS MANAGER Kacey Anderson enue projections, but the expecta- SENIOR PRODUCER FOR DIGITAL/ONLINE tion is that watch sales will account NATHAN SKID/CRAIN’S DETROIT BUSINESS PRODUCTS Pierrette Dagg for about 85 percent of revenue, Courtney Hayes, 24, builds Beginning a movement MARKETING ARTIST Sylvia Kolaski said Marketing Director Bridget the movement for Shinola’s SALES SUPPORT Suzanne Janik, YahNica Crawford Part of any manufacturing Russo, a New York transplant. Runwell watch at the PRODUCTION MANAGER Wendy Kobylarz process is the hope that it will PRODUCTION SUPERVISOR Larry Williams The watches will range from company’s Detroit headquarters. Each spawn a cottage industry, Carr $475-$1,000, Carr said, with most in CUSTOMER SERVICE movement contains 40-100 said. the $600 range. The company pro- MAIN NUMBER: Call (877) 824-9374 or write pieces. Shinola uses kits shipped into the [email protected] jects first-year production will be SUBSCRIPTIONS $59 one year, $98 two years. U.S. from Ronda’s Switzerland base about 45,000. That would put esti- Out of state, $79 one year, $138 for two years. for the movements. The cases (the Outside U.S.A., add $48 per year to out-of-state mated first-year sales of watches rate for surface mail. Call (313) 446-0450 or circular metal portion of the watch- alone at $21.4 million to $45 million. (877) 824-9374. es), dials, hands, crystals and buck- SINGLE COPIES: (877) 824-9374 Bicycles will be available initial- les are coming from suppliers in REPRINTS: (800) 290-5460, ext. 125; ly at two prices: $1,950 and (717) 505-9701, ext. 125; or lindsay.wilson China, and the leather straps for the @theygsgroup.com $2,950,with first-year production of ders for its first line of watches, a land Lofts and a 5,000-square-foot bands are sourced from Horween TO FIND A DATE A STORY WAS PUBLISHED: about 1,000, Russo said. That (313) 446-0406 or e-mail [email protected] Leather Co. in Chicago. would put estimated bicycle sales limited edition of The Runwell store in New York City’s Tribeca watch, on its website at www.shi- neighborhood. Hadley-Roma, a division of Roma CRAIN’S DETROIT BUSINESS IS PUBLISHED BY the first year in the $2 million to $3 CRAIN COMMUNICATIONS INC. Industries LLC million range. nola.com on Thursday. It will offer Both stores will offer its full line in Largo, Fla., turns CHAIRMAN Keith E. Crain With more hires, Shinola could 2,500 watches for $550 each, with of watches, bicycles and branded the leather into straps for watches, PRESIDENT Rance Crain delivery beginning in June. leather goods, and some collabora- and Fairfield Textile in Bridgeton, TREASURER Mary Kay Crain produce up to 250,000 movements Executive Vice President/Operations each year in its current space, de Shinola plans to introduce its tive products made with other N.J., provides canvas for some of William A. Morrow full line of watches, which could be American brands, Russo said. Shinola’s leather products. Vice President/Production & Manufacturing Boel said, and with more employees Dave Kamis and more equipment, double that. as many as 60 different designs, on The stores will host exhibitions, The frames and forks for Shino- Chief Information Officer Paul Dalpiaz If demand rises, Shinola has its website in June. talks and other events. And they’ll la bikes come from Wisconsin, and most of the other bike parts come Chief Human Resources Officer first rights to lease another 30,000 Also available this week: leather offer a platform for other made-in- Margee Kaczmarek square feet on the same floor. journals and Shinola’s first two bi- America goods, Russo said, with from various U.S. suppliers, ex- G.D. Crain Jr. Founder (1885-1973) cycle models, the three-speed Bixby new themes every couple of cept for some small parts sourced Mrs. G.D. Crain Jr. Chairman (1911-1996) The company plans to hire an- EDITORIAL & BUSINESS OFFICES: other 12 employees in April to be- and the 11-speed Runwell, inspired months such as a popular color or from Asia and Europe. 1155 Gratiot Ave., Detroit MI 48207-2732; gin assembling its first complete by French porteur bicycles. a modern take on a bygone era in Shinola hired established suppli- (313) 446-6000 ers so it could get its operations up Cable address: TWX 248-221-5122 AUTNEW DET watches, de Boel said. Currently, it “One of our immediate goals is the U.S. CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 employs 20 across its operations. to get the price point down” so the “It’s about spreading the story and running, de Boel said. But the is published weekly, except for a special issue the third week of August, and no issue the third week It will look for people with good company can sell more,” Carr said. but also about being part of the eventual goal is to get as many com- of December by Crain Communications Inc. at Leather goods such as wallets, community,” Carr said. “We want ponents as possible made in the 1155 Gratiot Ave., Detroit MI 48207-2732. vision because most of the work is Periodicals postage paid at Detroit, MI and done with the naked eye, good purses and bike bags will be for it to be a place where you can stop U.S. additional mailing offices. POSTMASTER: Send sale around May 1, Russo said. by and have a coffee ... or to see a Shinola is now looking to source address changes to CRAIN’S DETROIT BUSINESS, hand-eye coordination, attention to Circulation Department, P.O. Box 07925, Detroit, detail and a tolerance for meticu- bike being built.” the watch cases locally, he said, MI 48207-9732. GST # 136760444. Printed in lous work for long stretches of time. Shinola expects to have addi- noting it could take as long as two U.S.A. Starting storefronts Entire contents copyright 2013 by Crain tional distribution for its products years. Communications Inc. All rights reserved. Shinola plans in June to open a at department and jewelry stores Sherri Welch: (313) 446-1694, Reproduction or use of editorial content in any First product lines Midtown Detroit store in 30,000 across the U.S. by the middle of the [email protected]. Twitter: manner without permission is strictly prohibited. Shinola plans to begin taking or- square feet of space at Willys Over- summer, Carr said. @sherriwelch 20130311-NEWS--0026-NAT-CCI-CD_-- 3/8/2013 5:01 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS March 11, 2013 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF MARCH 2-8

tions to the regional com- $46 million underfunded U.S. Census Bureau, using munity and, in later years, Ally Financial and that any sale of Meta- 2006-10 estimates from the those who follow his exam- vation could harm further American Community Plenty of ple. funding. Survey. Schwartz, found lacking Ⅲ Contech Castings LLC Ⅲ Charities receive on 87, who co- told the state of Indiana it average only 35 cents of founded has laid off 208 workers at every dollar raised through space left at Honigman in Fed test its plants in Auburn and contracted professional Miller Pierceton, Ind., after losing fundraisers that solicit in Schwartz and etroit-based Ally Fi- a major customer, the Indi- Michigan, according to the Cohn LLP in nancial Inc., the auto anapolis Business Journal state’s first Professional 1952, has D lender majority- reported. Contech is a sub- Fundraising Charitable Solici- owned by U.S. taxpayers, Ford Field Schwartz served in sidiary of Southfield-based tation Report. leadership was the only one of 18 of the Revstone Transportation. Ⅲ The Southeast Michigan here’s still office Madison, was torn down to positions in a long list of country’s largest banks Ⅲ Warren-based Asset Ac- Purchasing Managers Index space left at Ford build the 36th District Court. tested that could not with- nonprofits, including Busi- ceptance Capital Corp. an- fell to 51.7 in February from T Field despite Campbell stand a deep recession and ness Leaders for Michigan, Jew- nounced it has agreed to be 55.3 in January, reflecting a Ewald Co. moving from War- maintain capital above a ish Federation of Metropolitan bought by San Diego-based drop in new orders. ren to take 121,787 square The dish on the regulatory minimum — a Detroit, Community Foundation Encore Capital Group in a Ⅲ A new $7.5 million feet on five of seven floors sign of how higher stan- Cheesecake Factory for Southeastern Michigan, De- $200 million deal expected to fund aims to help University in what used to be a J.L. Hud- troit Institute of Arts, Inter- dards and supervisory Why did it take so long close in the second quarter. of Michigan medical discov- son Co. warehouse that’s lochen Arts Academy, Oakland prodding are strengthening for the Cheesecake Factory Ⅲ Southfield-based R.L. eries move from the labora- now part of the stadium. University Board of Trustees, the financial system, the Inc. to make plans for a Polk & Co., one of the auto tory to the market, AP re- There is 53,000 square Detroit Medical Center, Detroit Federal Reserve said via Michigan location, given industry’s widely quoted ported. The effort is funded feet of office space remain- Symphony Orchestra, Wayne Bloomberg News. data sources, said it has re- ing at the building that that founder and CEO David in part by a $2.4 million Overton is a native Detroi- State University Foundation tained New York City in- forms the stadium’s south and many more. grant from the Michigan ter? Because it had been try- ON THE MOVE vestment bank Evercore Economic Development side, the team said. Of that, Partners to “explore strate- ing to work a deal in Troy Corp.’s 21st Century Jobs 8,000 square feet is available Ⅲ Mark Roualet, presi- gic growth opportunities.” and nothing came together. Kresge Arts Experience Fund. furnished. dent of Gen- One of those could include Total commercial office “We were very close to Ⅲ Starting this spring, opening where P.F. Chang’s set for April in Midtown eral Dynam- a sale, Polk Vice President space on the site is 330,000 ics Land the Michigan I-Corps pro- is, but the space wasn’t big Art X Detroit: Kresge Arts Lonnie Miller told WWJ 950. square feet. Systems Ⅲ gram will work with re- enough,” Overton said in an Experience returns this year The American Associa- The ad agency, which an- since 2008, searchers from across the interview with Crain’s last with a free five-day event in tion of University Professors nounced last week that it’s has been state to get new technolo- week. Detroit’s Midtown district chapter at Wayne State Uni- leaving its 10-story office named ex- gies to market more quick- The new plan is to open featuring various artistic versity overwhelmingly rat- tower on Van Dyke after 35 ecutive ly and boost the economic in Twelve Oaks Mall first, performances. ified an eight-year contract years to bring more than vice presi- impact of research, officials then look for other Michi- The event, scheduled for with faculty and academic 600 staffers downtown, dent and announced. gan locations down the road April 10-14, is funded by the Roualet staff. signed an 11-year lease for group exec- Ⅲ Ⅲ Most of Michigan’s if the first is successful. Troy-based Kresge Founda- The University of Michi- the unfinished space. utive of parent company largest business associa- The Cheesecake Factory tion. gan and its chapter of the Space at the stadium leas- General Dynamics’ Combat tions issued a letter to state cheesecake recipe is based Featured will be a collec- Lecturers’ Employee Organi- es for $21 to $23 a square Systems group. Roualet, 54, senators asking them to on the original recipe Over- tion of visual art, dance, zation said it reached a ten- foot, but neither the agency will be succeeded by Gary support the recently condi- ton’s mother adapted and musical and theatrical per- tative agreement on a five- nor the team disclosed fi- Whited, 52, senior vice pres- tionally approved federal- used to sell to Detroit formances, literary read- year contract. The deal nancial details. ident and general manager state health insurance ex- restaurants such as the Lon- ings and more from the impacts 1,500 lecturers. It’s the sixth tenant in the for the Sterling Heights- change for the state. don Chop House. Overton Kresge Eminent Artists and former warehouse, and its based defense contractor. Ⅲ Michigan has created moved to the Los Angeles Kresge Artist Fellowship space has not been occupied Ⅲ Ann Arbor-based Aas- OTHER NEWS the nation’s fifth-highest area in the late ’60s, fol- winners. since the stadium opened in trom Biosciences Inc. named number of clean energy lowed by his parents. Some of the featured per- Ⅲ U.S. Sen. Carl Levin an- 2002. Campbell Ewald is Dominick Colangelo presi- and transportation jobs, ac- For a full version of the formances scheduled include nounced he will not seek building out its space with dent and CEO. He was pres- cording to a report from En- Q&A with Overton, see playwright Bill Harris and re-election in 2014, saying the goal of moving in by De- ident and CEO of Lexing- Nathan Skid’s blog at poet Naomi Long Madgett. he wants to serve as Senate vironmental Entrepreneurs, a cember or January. ton, Mass.-based biotech crainsdetroit.com/skid. Works and performances Armed Services chairman group of business leaders. The office space was actu- company Promedior Inc. Dan and an advocate for his Ⅲ An Ingham County Cir- ally two buildings — the will be displayed across Orlando, interim CEO, will home state of Michigan cuit Court judge ruled that Beacon and Beaubien ware- Inaugural Schwartz award Midtown at venues such as continue as chief commer- “without the distraction of medical marijuana users houses — used by the de- the Museum of Contemporary cial officer. goes to namesake campaigning for re-elec- who follow the state’s law partment store to receive Art Detroit, the Detroit Insti- Ⅲ Metro Times named tion.” A Democrat, Levin, may collect unemployment and deliver merchandise, And the winner of the tute of Arts and Detroit Sym- Red Thread Magazine cre- 78, was first elected to the benefits. build, refurnish and re- first Alan E. Schwartz Award phony Orchestra Hall. ator and former editor Bryan Also organizing the event Senate in 1978 and is the Ⅲ Consumers Energy said upholster furniture, and for is, well, Alan E. Schwartz. Gottlieb as editor-in-chief. is Detroit-based Midtown De- longest-serving senator in it has halted projects printing. Detroit Mayor Dave Bing Gottlieb, 39, succeeds W. Kim Clearance sales were held troit Inc. Michigan’s history. throughout Michigan that created the award, be- Heron, who became a writer at the warehouses until 1998. For more details, visit Ⅲ Mayor Dave Bing said involve the same drilling stowed last month, to recog- for the Troy-based Kresge A third warehouse, the nize Schwartz’s contribu- artxdetroit.com. he won’t participate in De- method used before a Roy- Foundation. troit’s appeal of a state real Oak house explosion Ⅲ Wayne State University port criticizing local offi- that killed a 58-year-old Provost Ronald Brown, cur- cials for their handling of man. rently on leave for a tempo- the economic mess. Bing Ⅲ Helen Zell, wife of bil- rary assignment at the Na- lionaire real estate mogul tional Institutes of Health, said he opposes the ap- Sam Zell, is giving $50 mil- was named sole finalist for pointment of an emergency BEST FROM THE BLOGS manager but sees no way to lion to support the Universi- president of the University of ty of Michigan’s acclaimed READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS North Texas-Dallas. The mea- avoid one. graduate writing program. sure is a preliminary step Ⅲ Detroit on May 22, for Stroh ambitions just the start Not the time for Olympics bid before the board can for- the first time, will join the mally vote to appoint him. world’s top advertising OBITUARIES Mark Rieth, owner When the call came cities for Portfolio Night, an of“ Atwater Brewing Co., in“ from the U.S. Olympic annual networking event Ⅲ Diane Edgecomb, long- has grand aspirations Committee last month COMPANY NEWS connecting young advertis- time president (1980-97) of for the Rivertown for Detroit to consider Ⅲ The federal Pension ing copywriters, art direc- Detroit’s Central Business brewery to turn into a bidding on the 2024 tors and designers with cre- District Association, died major player in Olympic Games, the Benefit Guaranty Corp. plans ative directors. For details March 5. She was 92. America’s craft beer timing certainly seemed to take over two defined- scene. off. benefit pension plans of and tickets (on sale April Ⅲ Toni Wisne Sabina, pres- Southfield-based Metavation 15), go to PortfolioNight.com. ident, co-owner and ” ” LLC before a sale of the sup- Ⅲ Oakland County has founder of Novi-based plier, agency officials said. among the highest number Epoch Hospitality Group and Reporter Nathan Skid’s Detroit-area restaurant blog Managing Editor Jennette Smith writes about bits and The PBGC filed a motion in of commuters coming from the Tribute restaurant in can be found at www.crainsdetroit.com/skid pieces on her “Smithereens” blog. It can be found at another county for work, Farmington Hills, died www.crainsdetroit.com/section/blogJennetteSmith U.S. District Court in Detroit, claiming that the plans are 262,164, according to the March 7. She was 48. DBpageAD_DBpageAD.qxd 2/26/2013 9:59 AM Page 1

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