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Refunds a Possibility 20120716-NEWS--0001-NAT-CCI-CD_-- 7/13/2012 6:46 PM Page 1 ® www.crainsdetroit.com Vol. 28, No. 29 JULY 16 – 22, 2012 $2 a copy; $59 a year ©Entire contents copyright 2012 by Crain Communications Inc. All rights reserved Page 3 Health systems’ changes MBT redux: Refunds a possibility have midwives on the move Majority Leader Randy Richardville, R-Mon- Deduction for materials, supplies key issue roe, said plans call for reviewing fiscal analyses and trying to clarify and quantify the revenue BY AMY LANE due that money for the past four years. But the impact to the state. SPECIAL TO CRAIN’S DETROIT BUSINESS issue surrounding the deductibility of materi- “We plan to move all of that bill, or part of als and supplies over four years of returns is that bill, on Wednesday,” he said. A small change in business tax wording, the costliest item in a larger Michigan Business Supporters of the legislation say they do not awaiting action in the Michigan Senate, could Tax bill. The bill makes numerous changes to think the revenue impact will be as high as sug- by one state estimate add up to hundreds of mil- the now-repealed tax. gested by the Michigan Department of Treasury: up Punk meets metal: lions of dollars in refunds to Michigan busi- Senate Bill 1037 is expected to be discussed in to a half billion dollars. nesses. the Senate Republican caucus Wednesday Legislation supporters say it is needed to Rocker/CEO revs up supplier Advocates say business has been rightfully when lawmakers return for a one-day session. See MBT, Page 20 Second Stage Extra Coaching for minority-owned suppliers: Is it working? Page 8 Crain’s List Choices tough for maxed-out plants BY DUSTIN WALSH In Southeast Michigan, 3rd quarter SBA loans, CRAIN’S DETROIT BUSINESS some small suppliers are Page 11 Surging North American facing big decisions — spend capital or ditch con- This Just In auto sales are prompting large and small suppliers to tracts — and midsize and FutureNet Group to buy make contingency plans to large sup- cope with pressure on pro- DEMAND RISES pliers are Smith & Wesson subsidiary in a calcu- duction capacity. Q&A with ZF Detroit-based FutureNet North America lated plan- Group Inc. plans to buy a Three years ago, the auto- president on the ning perimeter security sub- motive industry contracted company’s fuel- sidiary of Smith & Wesson and hundreds of plants efficient mode. Holding Corp., under an ac- were idled. transmissions, Industry quisition agreement be- Page 19 watchers tween the companies an- Today, rising auto sales nounced Friday. and production mean an in- say suppli- FutureNet Security Solutions creasing number of suppli- ers have become more so- — a newly formed Nashville phisticated coming out of subsidiary of the Detroit ers are running their plants construction, environmen- ragged, said Bill Diehl, pres- the most recent downturn, tal consulting and engineer- ident and CEO of the South- but the rapid rise in de- ing company headed by mand is still a challenge. President and CEO Perry field-based advisory firm Mehta — plans to close on BBK Ltd. See Capacity, Page 19 purchasing the assets of Smith & Wesson Security Solu- tions of Franklin, Tenn., “DETROIT INDUSTRY,” DIEGO RIVERA/DETROIT INSTITUTE OF ARTS within 30 days. Terms were not disclosed. Smith & Wesson Security ex- EMU president’s troubles reflect corporate challenges ecutives Wesley Foss and Ken- neth Grant will become presi- dent and executive vice BY CHAD HALCOM change with an EMU alumni chap- of four years announced last week cern for President Martin and our president, respectively, of CRAIN’S DETROIT BUSINESS ter president she would seek counseling and do- responsibility to Eastern Michi- FutureNet Security, which may be related to nate an $8,764 raise this year to a gan University. It was written be- will stay in Nashville. A recent reprimand by Eastern the timing and student wellness program that in- cause of the board’s support of Smith & Wesson Security Michigan University against Presi- political climate cludes alcohol awareness at EMU’s President Martin and our desire to has completed $130 million of dent Susan Martin that grabbed surrounding Snow Health Center. see her be successful,” board of re- perimeter security projects headlines last week didn’t occur in Eastern as well The university in a May 17 letter gents Chairman Roy Wilbanks at more than 110 military in- a vacuum, and it shows the chal- as other univer- recommended that Martin seek said in a statement to Crain’s. stallations, 16 distinct feder- lenges of imposing corporate disci- sities and busi- support and counseling through “We have put this matter behind al agencies and several For- pline on executives for incidents nesses. the school’s employee assistance us and are continuing to address tune 500 companies, with alcohol. After the program or elsewhere, and Martin the important and positive work of Local experts said the board of re- board recom- last week said she would do so. the university.” FutureNet said. Martin — Chad Halcom gents’ recommendation that Martin mended that she “I can state unequivocally that seek counseling after an April 23 ex- get help, the university president this letter was written out of con- See Alcohol, Page 18 NEWSPAPER 20120716-NEWS--0002-NAT-CCI-CD_-- 7/13/2012 4:02 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS July 16, 2012 MICHIGAN BRIEFS Grand Rapids looks at linking plans to liquidate under Chapter 7 bankruptcy. The manufacturer of ‘wage theft’ to city contracts Oil spill report leaves pipeline firm with mud on its face metal-forming machines was ac- Grand Rapids officials are con- quired in 2005 by Monomoy Capital The Associated Press called it “the most expen- terpreted them. sidering new rules governing com- Partners LLC. sive onshore oil spill in history.” The head of the Na- In addition, NTSB investigators said, Enbridge panies that do business with the Ⅲ FireKeepers Casino near Battle tional Transportation Safety Board, which investigated, knew in 2005 that a stretch of pipeline near Mar- city after a McClatchy Newspapers Creek planned a job fair today. said that in studying the response to the spill, “you shall, about 95 miles west of Detroit, was cracked report last month on “wage theft” More than 300 openings must be can’t help but think of the Keystone Kops.” and corroded but didn’t perform work that might featured a Grand Rapids woman. filled by fall before its hotel opens, The target of the cop comment was the Canadian- have averted the rupture. Examples of wage theft include not along with an expanded gambling based pipeline company Enbridge Inc., which last The spill dumped about 843,000 gallons of heavy operation. An executive at the 3- paying overtime, paying less than week said it would wait until a final report before re- crude oil into the Kalamazoo River and a tributary year-old casino told MLive that it minimum wage, stealing tips or sponding. The U.S. Department of Transportation’s creek, contaminating more than 35 miles of water- currently employs 1,500 “thrill- misclassifying employees as inde- Pipeline and Hazardous Materials Safety Adminis- ways and wetlands. About 320 people reported makers.” So “Have a nice day” ap- pendent contractors. tration has proposed a record $3.7 million civil symptoms from crude oil exposure. parently isn’t good enough any- At the urging of the nonprofit penalty against Enbridge. Enbridge’s cleanup costs have exceeded $800 mil- more. Micah Center two years ago, Grand Oil began leaking from a 30-inch pipeline that lion. Ⅲ After Holland’s publicly owned Rapids Mayor George Heartwell runs from Griffith, Ind., to Sarnia, Ontario, on July The report also faulted weak regulation of En- utility spent a year studying commissioned a task force to 25, 2010. Although alarms sounded at the Enbridge bridge’s oil spill response plan by the federal whether it made sense to build its study whether wage theft is a control center in Edmonton, Alberta, staffers misin- pipeline administration. own wind farm — in part to meet problem. the state’s requirement that utili- “We found wage theft stories ties generate 10 percent of their en- everywhere that we went in this marks the hotel’s 125th anniver- fill’s nephew and current hotel and take on maintenance costs for sary — or about one year for every president. the 385-room wood-frame building ergy from renewable sources by city,” said Eric Foster, a task force 2015 — the city determined that the member and vice chairman of the story written about the hotel’s an- Ⅲ On July 11, 1939, the hotel had that shuts down for half the year.” niversary last week. 11 paying guests served by 411 em- Said Bob Tagatz, the hotel’s his- project wouldn’t fly because of a Grand Rapids Urban League. Heart- lack of (wait for it) wind. well said the city will study the One of those articles, from ployees. One would surmise that torian and concierge, “If someone task force’s proposal for cost and MLive’s Melissa Anders, offered customer service complaints were didn’t care about it and have an in- legal implications. these historical nuggets — or, if few. terest besides just the money side, Find business news from you don’t mind another obscure Ⅲ When the last recession hit in we wouldn’t exist — trust me.” around the state at crainsdetroit reference to the hotel’s traditions, September 2008, Musser said: “It .com/crainsmichiganbusiness. A hotel that has survived 125 years pecan balls: was like a light switch went off, MICH-CELLANEOUS Sign up for Crain's Michigan probably can call itself ‘grand’ Ⅲ In the early 1900s, the hotel and I’ve never been happy that we Business e-newsletter at crains leased space for illegal drinking have to close for half the year ex- Ⅲ Niles-based Hess Industries Inc.
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