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Shinola All Wound up for Online Sales CD_20130311page1_BASIC.qxp 3/8/2013 5:04 PM Page 1 ® www.crainsdetroit.com Vol. 29, No. 10 MARCH 11 – 17, 2013 $2 a copy; $59 a year ©Entire contents copyright 2013 by Crain Communications Inc. All rights reserved Page 3 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 ® Cwww.crainsdetroit.comRAIN Vol. 29, No. 10 ’SDETROITMARCH 2013 BUSINESS$2 a copy; $59 a year ©Entire contents copyright 2013 by Crain Communications Inc. All rights reserved 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.
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