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Page 3 Bill would can ban TRW-GM rift signals power shift on logos on bar, eatery glasses JOHN PLANT: “I think the Suppliers less willing to take low-margin deals situation may Pistons rebound with BY DUSTIN WALSH cus on shareholder influence, experts say. be best characterized CRAIN’S DETROIT BUSINESS In a filing with the U.S. Securities and Exchange Com- assist from tickets mission in September, TRW said that it terminated the by: Our Last month, TRW Automotive Inc. CEO John Plant – and talent customers have contract with an undisclosed customer, which repre- a view about told investors the Livonia-based supplier was walk- sented a 6.5 percent margin in 2012. the price point ing away from a $700 million brake contract. Neither company would comment on the specific When the corner office that they feel Sources told Crain’s a pricing dispute between reason for terminating the contract, but Plant told in- they want to TRW and General Motors Co. led to the contract termi- vestors on its quarterly conference call on Oct. 29 that is the pulpit pay for certain nation for parts supplied out of TRW’s Saginaw plant. pricing was the sticking point. components, which sometimes The move represents one of the largest dropped “I think the situation may be best characterized by: coincides with ours, and sometimes contracts in recent memory, and some local experts it does not; and we have to make an Our customers have a view about the price point that CRAIN’S say it is representative of the new power shift be- they feel they want to pay for certain components, assessment of where we believe that tween North American suppliers and automakers. MICHIGAN BUSINESS our competitive situation is or our which sometimes coincides with ours, and sometimes position assets are.” The new hard-line stance for better pricing is the result of strong demand, limited capacity and a refo- See Suppliers, Page 29
MATTHEW GRYCZAN Stocking Children’s Man’s plan for deer park Hospital to comes with a past, Page 11 build tower, This Just In Duggan’s Cabinet Detroit River wildlife refuge expand rooms to get a visitor center er Kevyn Orr, who must approve all actions taken The Detroit River Internation- He’s not naming names, but by a mayor — including the filling and creation of BY SHERRI WELCH al Wildlife Refuge will get a vis- Cabinet positions. CRAIN’S DETROIT BUSINESS itor center that’s expected to be used by school groups and others are making predictions Children’s Hospital of Michigan is others to help explore and un- Political connections making plans to construct a six- derstand the wildlife that call BY KIRK PINHO Duggan, who won Tuesday’s election 55 percent to story patient tower and reconfigure the region home. CRAIN’S DETROIT BUSINESS 45 percent over Wayne County Sheriff Benny all of its double-occupancy rooms to A groundbreaking event Napoleon, told Crain’s that he has not offered specific private rooms for an estimated in- ow hiring: “First-class” administrators for was scheduled for Friday for jobs to anyone. Nor has he revealed whom he’s spoken vestment of $100 million or more. the 12,000-square-foot facility Mike Duggan’s Cabinet. To make room for the tower at in Trenton. The center is to be N Detroit political observers and campaign See Duggan, Page 27 Mack Avenue and Beaubien Street, built at the Refuge Gateway, supporters believe the mayor-elect should look to a the hospital plans to relocate the near the refuge’s Humbug mix of trusted inner-circle supporters and leaders Whoever Mike Duggan Ronald McDonald House Charities of picks for his Marsh area, by fall 2015. with proven private sector management skills. Southeastern Michigan house in Mid- Duggan has repeatedly said he wants to hire a Cabinet still must town from land it Wayne County, the U.S. pass muster with Fish and Wildlife Service and “first-class Cabinet,” mean- deeded condi- ing an administration with Emergency others worked for nearly a TUBE STILL RULES Manager Kevyn tionally to the decade on restoration of the strong, competent leaders Orr, who must charity to a new Refuge Gateway. Located on Got a mayoral who are able to do their jobs approve all site at Mack and the river’s Trenton Channel, message? Still hard without a micromanager actions taken Brush Street, it was the site of a Chrysler to stop the power of looking over their shoulders. by a mayor. about a half mile TV, Page 26 manufacturing facility that Who’s on the short list? away, for an ad- was deactivated in 1990. Duggan isn’t saying, but like- ditional $3.5 mil- When built, officials say, ly names are found among campaign staffers and lion. the visitor center will include supporters, former city department heads, former The new tow- Ewald a theater, classrooms and of- Detroit Medical Center colleagues and er and hospital fices along with a wildlife ob- even current and former state reconfiguration are part of the $850 servation area and outdoor lawmakers. million promised when Vanguard patios. Whoever those leaders turn Health Systems — now Tenet Health- The refuge includes more out to be, they will face the care Corp. — acquired the Detroit than 5,700 acres along 48 possibility that their selec- Medical Center in 2012, said Luanne miles of the lower Detroit tion could ultimately be Ewald, vice president of business River and western Lake Erie. scuttled by Detroit’s current development and strategic plan- — Associated Press leader: Emergency Manag-
NATHAN SKID/CDB See Tower, Page 29
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Page 2 CRAIN’S DETROIT BUSINESS November 11, 2013
MICHIGAN BRIEFS LG Chem back making batteries, the cleanup of the Torch Lake tox- ic waste site in Houghton County repays feds to resolve trouble Kellogg to cut 7% of global workforce to trim costs in the Upper Peninsula, The Asso- Nearly two months after shut- ciated Press reported. The EPA ting down production because it About the only people to extract anything good The cost-cutting plan involves increasing growth said that about 200 million tons of lacked approval from the U.S. Envi- out of this announcement last week were all the in emerging markets, consolidating facilities and a mine tailings were dumped there ronmental Protection Agency to use a headline writers who were given the opportunity to global emphasis on regional brands, according to during copper milling and smelt- key chemical in production, Hol- write “grrrreat!” in big type. Battle Creek-based Kel- the statement. Kellogg had about 31,000 employees ing operations from 1868 to 1968. land-based LG Chem Michigan Inc. logg Co. said it will cut 7 percent of its global work- as of Dec. 29, according to regulatory filings. Ⅲ Canada-based Graymont Inc. restarted production of lithium- force, or about 2,000 jobs, as part of a four-year cost- Also last week, Kellogg said it plans to borrow an wants to acquire more than 10,000 ion batteries for electric vehicles, saving plan, Bloomberg News reported. The reason: additional $500 million to help cover costs of the re- acres of state-managed forest in The Holland Sentinel reported. Slower sales of breakfast items and snacks. So structuring, Bloomberg News reported. Rather than Mackinac County in the Upper About the same time, the compa- maybe it’s not the most important meal anymore. curb dividends, the company may add to its $7.4 bil- Peninsula for use as an under- ny said it would pay about $1.2 mil- “We are making the difficult decisions necessary lion in borrowings over the next three years, CFO ground limestone mine. The Michi- lion to resolve federal allegations to address structural cost-saving opportunities Ronald Dissinger said during a conference with ana- gan Department of Environmental Quali- that it improperly sought and ob- which will enable us to increase investment in our lysts and investors. Bloomberg says Kellogg already ty would have to OK any mining. tained funds to pay workers en- core markets and in opportunities for future is the most leveraged among the five largest U.S. Ⅲ The Grand Rapids-Kent County Con- gaged in recreational and volun- growth,” CEO John Bryant said in the statement. food manufacturers. vention/Arena Authority extended its teer activities, according to a management contract with Con- statement from the U.S. Department shohocken, Pa.-based SMG for anoth- of Justice. long struggled with budget prob- law bars marijuana use and pos- MICH-CELLANEOUS er two years. That means SMG will LG Chem already has refunded lems and, like Detroit, is under a session unless it’s medical mari- manage Van Andel Arena, the DeVos $842,000 to the U.S. Department of state-appointed emergency manag- juana. Last year, Grand Rapids Ⅲ Midland-based Dow Chemical Co. Place convention center and the De- Energy after allegations that feder- er. voters made possession of small has announced plans to retire up to Vos Performance Hall on behalf of the al stimulus funds were used to pay Ⅲ Voters in Saugatuck and Dou- amounts of marijuana a civil viola- $500 million in debt in the fourth authority until June 20, 2016. SMG employees for playing checkers, glas rejected a proposal to consoli- tion instead of a misdemeanor quarter, MLive.com reported. So far also manages Cobo Center in Detroit. watching movies and performing date. As Crain’s Michigan Business crime. this year, Dow has reduced its debt Ⅲ Minneapolis-based General community service on company noted in August, for more than two Ⅲ Traverse City Mayor Michael by $2.4 billion, resulting in a nearly Mills Inc. plans to locate a distribu- time. years, Gov. Rick Snyder has tried Estes won re-election one day $120 million year-to-date decline in tion center in the Midlink Business The $303 million plant had failed to make it easier for communities after pleading guilty to a misde- interest rate expenses. Park in Kalamazoo, MiBiz.com re- to produce any batteries because to consolidate services or merge meanor charge of driving while Ⅲ The Canadian pipeline compa- ported. The project is expected to of sluggish sales. governments. impaired. ny Enbridge Inc. said it won’t meet a open next June and provide 27 jobs Ⅲ Voters in Jackson and Lansing Ⅲ Grand Rapids voters approved federal order to finish cleaning up over two years. joined their counterparts in Fern- an increase in property taxes over the Kalamazoo River by the end of Outstate election results dale in approving proposals call- seven years to fund city park re- this year. More than 30 miles of the Find business news from ing on police to ignore possession pairs and improvements and oper- river were polluted when 800,000 around the state at crainsdetroit you might have missed of an ounce or less of marijuana on ation of city swimming pools. Offi- gallons of crude leaked from a rup- .com/crainsmichiganbusiness. Ⅲ Benton Harbor residents last private property. People must be cials say the tax would cost the tured pipe in 2010. Sign up for Crain's Michigan week rejected a city income tax in at least 21 years old. Marijuana average homeowner about $45 per Ⅲ The U.S. Environmental Protec- Business e-newsletter at crains their community. The city has users still face risks because state year. tion Agency says it has completed detroit.com/emailsignup. AS AN ENTREPRENEUR YOU KNOW WHAT’S RIGHT FOR YOUR SMALL BUSINESS
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November 11, 2013 CRAIN’S DETROIT BUSINESS Page 3 No-go on logos may go Health Care Bars, eateries could have alcohol-branded glassware
BY NATHAN SKID The bill sponsor, Sen. Joe Hune, R-Hamburg Township, CRAIN’S DETROIT BUSINESS was unavailable for comment. The bill now moves to the House, where it has been re- Michigan bar and restaurant goers may start seeing ferred to the Regulatory Reform Committee. branded glassware in bars and restaurants across the The current version of the bill also stipulates that bar and state, due to a possible change in a little-known regula- restaurant owners submit the purchase order for the glass- tion. ware to the Michigan Liquor Control Commission for approval. The Senate passed SB 505 last week, allowing Michigan The bill only applies to glassware and does not allow for retailers to serve alcoholic beverages out of glassware with other branded items like napkins, coasters or clocks. Firms with healthy habits told logos — as long as it was purchased from an approved It does not allow manufacturers or wholesalers to give third-party source. The glassware seller cannot be affiliat- to lead the way, Page 17 ed with a liquor manufacturer, wholesaler or retailer. See Glass, Page 25 WIKIMEDIA COMMONS Company index More Pistons fans are buying season tickets to These companies have significant mention in this see players such as week’s Crain’s Detroit Business: Talent, tickets fuel Brandon Jennings as the American Axle & Manufacturing . . . . . 15, 29 team rebuilds. Amway ...... 11 Asset Health ...... 17 Atwater Brewing ...... 25 Autocam ...... 3 Autoliv ...... 15 Beaumont Health System ...... 17 Pistons’ rebound Blue Cross Blue Shield of Michigan . . . . . 19 Bookies Bar & Grille ...... 25 C12 Group ...... 28 The season- Children’s Hospital of Michigan ...... 1 Mannion sees ticket base de- Clark Communications ...... 28 clined by half, Clark Hill ...... 29 Compuware ...... 15 or about 6,000 Con-way ...... 15 revenue rising fans, as the team Conway Mackenzie ...... 29 struggled on the Cooper-Standard Automotive ...... 15 Cornerstone University ...... 28 court from 2007 Crossroads Consulting Group ...... 27 along with play to 2012, but sales Deer Forest Amusement Park ...... 11 have rebounded Detroit Medical Center ...... 1 BY BILL SHEA 36 percent since Detroit Pistons ...... 3 Domino’s Farms ...... 28 CRAIN’S DETROIT BUSINESS Mannion last year, Man- Dow Chemical ...... 15 nion said. Dykema Gossett ...... 27 Conventional wisdom among pro He declined to say how many Eastbook Homes ...... 28 Expert-Metal ...... 17 basketball pundits says the young season tickets have been sold, but Family Christian Stores ...... 28 Detroit Pistons will be better this sea- did say it remains under 10,000. A Federal-Mogul ...... 15 son, maybe even a playoff team. 36 percent increase over 6,000 Fleetwood Group ...... 28 Ford Motor ...... 1, 15 Just five games into the season, would be about 2,100 new season- Foster McCollum White & Associates . . . 27 it’s still too early to tell how good ticket holders. General Motors ...... 1, 15 they are, but the rebuilding fran- Season tickets range from $359 to Grand Valley State University ...... 28 chise’s top executive confirmed the $7,000 for a single seat in the bowl at Hamilton Anderson Associates ...... 29 Howard & Howard Attorneys ...... 29 finances continue to improve — the Palace of Auburn Hills, and the Lear ...... 15 along with the quality of basketball. bulk of those are in the $900-$1,000 Meridian Health Plan ...... 19 range for the 41 home games. Metro International Trade Services ...... 7 “We’re clearly on the ascent. It’s Michigan Campaign Finance Network . . . 26 driven by product, but also by some All first-row courtside seats, Michigan Future ...... 4 of the packaging that’s gone to the which range from $25,000 to $50,000 Munder Capital Management ...... 6 ticketing,” said Dennis Mannion, for the season, have been sold, Palace Sports and Entertainment ...... 3 Plunkett Cooney ...... 27 the former Los Angeles Dodgers presi- Mannion said, as have the second- Powers Distributing ...... 25 dent hired by new owner Tom Gores row courtside seats that range Presidents Council, State Universities of Mich. . 4 in September 2011 as CEO of Palace from $12,500 to $25,000. Priority Health ...... 17 The team will sell season-ticket Ronald McDonald House Charities ...... 1 Sports and Entertainment LLC, the um- SAF-Holland USA ...... 15 brella company that oversees the St. John Providence Health System . . . . . 19 Pistons and other properties. See Pistons, Page 25 Stroh ...... 5 ASSOCIATED PRESS TI Automotive ...... 15 Truscott Rossman ...... 26, 27 TRW Automotive ...... 1, 15 University of Michigan ...... 4 University of Michigan Health System . . . 19 Urban Science ...... 15 WDIV-Channel 4 ...... 26 WJBK-TV2 ...... 26 When corner office is the pulpit WWJ-TV62 ...... 26 WXYZ-Channel 7 ...... 26 Wayne State University ...... 26 BY ROD KACKLEY Act forces me to pay for things that vio- Weingartz Supply ...... 28 William Beaumont Hospital ...... 21 SPECIAL TO CRAIN’S MICHIGAN BUSINESS late my deeply held beliefs, such as Workforce Intelligence Network ...... 4 abortion. I can’t in good conscience XMCO ...... 17 The president and CEO of Autocam X-Rite ...... 15 Corp. in the Grand Rapids suburb of choose between violating my beliefs Kentwood has spent the past year and meeting my employees’ needs.” Department index fighting Obamacare, citing his reli- Although Kennedy’s argument was BUSINESS DIARY ...... 23 gious beliefs. rejected by the 6th U.S. Circuit Court CALENDAR ...... 22 John Kennedy, a Roman Catholic, of Appeals in September, he is not CAPITOL BRIEFINGS...... 10 Kennedy said in a YouTube video posted in Octo- giving up. CLASSIFIED ADS ...... 25 ber 2012 that he believed in the “goal of the Af- Kennedy and his company are asking the U.S. KEITH CRAIN...... 8 fordable Care Act, … but the Affordable Care See Golden, Page 28 LETTERS...... 8 MARY KRAMER ...... 11 ISTOCK PHOTO OPINION ...... 8 No profits, plenty of news A little bird told us ... OTHER VOICES ...... 9 THIS WEEK @ Read a roundup of the week’s nonprofit news Is brevity the soul of wit? See what Crain’s PEOPLE ...... 24 every Thursday in the Nonprofit Newsletter. staffers are gabbing about by grabbing RUMBLINGS ...... 30 WWW.CRAINSDETROIT.COM Sign up at crainsdetroit.com/getemail. their handles at crainsdetroit.com/twitter. WEEK ON THE WEB ...... 30 20131111-NEWS--0004-NAT-CCI-CD_-- 11/8/2013 1:50 PM Page 1
Page 4 CRAIN’S DETROIT BUSINESS November 11, 2013 Report: Michigan must draw more knowledge work, lean less on auto
BY CHRIS GAUTZ technical center. “And nobody years, that has completely flipped, CAPITOL CORRESPONDENT sees that as an asset,” Glazer said. with state assistance accounting Minnesota is a state where such now for less than 25 percent. Michigan’s economic future will jobs are viewed as assets, and is While college attainment is one depend on whether it can attract one of several factors, Glazer said, factor, it is not the only one and talented workers and companies that is drawing young and talented should not be viewed in a vacuum, in the knowledge-based service in- workers there. said Lisa Katz, executive director dustries, and depend far less on That state is also growing its of the Workforce Intelligence Net- employment in automotive facto- own talent, as it is a top 10 state work for Southeast Michigan. ries, according to a report being re- with adults that have a college de- She said it is becoming clear leased today. gree. Michigan ranks in the mid- that across the country, employers Michigan Future Inc.’s new report, 30s, he said. are looking for people with four- “The New Path to Prosperity: And that translates into higher year degrees, and the percentage Lessons for Michigan From Two wages. of adults pursuing those degrees is Decades of Economic Change,” de- In 1990, Minnesota’s personal in- increasing as well. tails the state’s decline in employ- come per capita was $33,223. In But some companies also under- ment and employment earnings in 2011, it had risen to $44,560. stand that they don’t always need the past two decades, and how that In Michigan, per capita income someone with a degree, they need compares nationally and with fel- in 1990 was close to that of Minneso- someone that can do the job. low Great Lakes state Minnesota. ta’s at $31,552, but by 2011, it has not “There are lots of people with de- Lou Glazer, president of Michi- risen nearly as much, at $36,264. grees that can’t do anything,” she gan Future, co-authored the report During that time, Minnesota put said. “Degree attainment is impor- with Don Grimes, senior research a priority on education, Glazer said. tant, but employers are looking to specialist at the University of Michi- Michael Boulus, executive di- make sure people are work-ready. gan’s Institute for Research on Labor, rector of the Lansing-based Presi- It’s a really good thing to look at the Employment and dents Council, State Universities of competency of the individual.” the Economy. Michigan, said it is no surprise Glazer said aside from the num- “Michigan’s Minnesota is doing so much better ber of college graduates Minnesota problem is that than Michigan. has, the state also spent time creat- knowledge- “They invest very heavily in ing communities that people want- based services higher education,” he said. ed to live and work in. are not growing Boulus said state financial sup- “They have a central city that nearly as fast as port of higher education in Michi- works,” Glazer said. “That stuff re- other states in gan used to account for about 75 ally matters.” the country,” percent of university budgets, Chris Gautz: (517) 403-4403, Glazer Glazer said. with 25 percent coming from vari- [email protected]. Twitter: The report ous other sources. Over the past 30 @chrisgautz shows Michigan has the same per- centage of the workforce, 26.3 per- cent, in knowledge-based services industries, but employment earn- ings in that sector have lagged be- OUR FIELD. hind in Michigan. The share of private earnings per capita nationally in knowledge- YOUR DREAMS. based services in 1990 was 32.8 per- cent. By 2011, that had grown to 41.5 Tigers Fantasy Camp percent. For manufacturing, the in Lakeland, Florida. share was 20.7 percent in 1990, and declined by 2011 to 12.1 percent. Featuring the 30th anniversary reunion In Michigan, the share of pri- of the 1984 World Series Champions. vate-sector earnings per capita in knowledge-based services in 1990 was 30 percent, and increased to 38 percent by 2011. It also saw a large drop in earnings from manufactur- ing, from 32 percent in 1990 to 20 percent in 2011. The vast majority of the manufac- turing job losses in the past two decades in Michigan came in the most recent decade, with the loss of 309,400 jobs. From 1990 to 2001, which the report called the “boom Tired of missing your flight? times” for the state, manufacturing JANUARY 19-26 lost 8,400 jobs. JANUARY 26 - FEBRUARY 2 “Over two decades, in good economies and bad economies, fac- tory work is declining,” he said. Glazer said it should not be Michigan’s goal to try and recreate a state filled with high-paid factory jobs, as it once was. “That doesn’t work anymore be- cause of globalization and technol- ogy,” he said. Glazer said for Michigan to move forward, it’s more of a vision problem than a policy problem. Some state officials for years rested their hopes in landing a Toy- Join the CLUB ota factory in the state, Glazer said, GREAT FOR MORE INFORMATION OR RESERVATIONS 1 (248) 860- 6378 • [email protected] and all the assembly-line jobs it HOLIDAY would bring. “That was seen as the GIFT! CALL 313-471-2550 Keeping you on schedule big get,” he said. OR VISIT TIGERS.COM/FANTASYCAMP But in Ann Arbor, the state had already landed Toyota’s largest 20131111-NEWS--0005-NAT-CCI-CD_-- 11/8/2013 4:15 PM Page 1
November 11, 2013 CRAIN’S DETROIT BUSINESS Page 5 Stroh applies to end pension plan
BY TOM HENDERSON Stroh Cos.’ business is sound. As sustainable in the long-term now, CRAIN’S DETROIT BUSINESS we look out to the future, the considering we no longer run a stream of payments that the plan large business,” he said. Detroit-based Stroh Cos. Inc. filed requires, under low-interest-rate Additional information con- a formal application Friday with conditions, requires us to be cerning the termination can be ob- the U.S. Pension Benefit Guaranty proactive now to protect the bene- Corp. to terminate the defined ben- tained at www.SBCHoldingsPen- ficiaries and the company,” Stroh efit pension plan for SBC Holdings sionFacts.com. said. the Inc., which pays the retirement Tom Henderson: (313) 446-0337, benefits for former employees of “Not that many years ago, the [email protected]. Twitter: the Stroh Brewing Co. plan was overfunded, but it isn’t @tomhenderson2 The company plans to terminate the plan on Jan. 12. leading According to John Stroh III, chairman of the Stroh Cos., about 3,000 former em- ployees of the brewery are af- Home Care fected. The market is He said the pension plan is changing. about $40 mil- Are you ready? choice lion short of the $180 million it needs to be fully ŶŐĂŐĞƚǁĞůů͛ƐƌĞƐŝĚĞŶƟĂů funded. ĚĞǀĞůŽƉŵĞŶƚƚĞĂŵĂŶĚ Stroh ŐĂŝŶŐƌŽƵŶĚŝŶ^ŽƵƚŚĞĂƐƚ michigan Stroh told of Crain’s in an interview that he ex- DŝĐŚŝŐĂŶ͘tĞŚĞůƉ pects the PBGC will agree to as- ĚĞǀĞůŽƉĞƌƐĂŶĚďƵŝůĚĞƌƐ * sume benefit payments and that ŐĞƚĂŚĞĂĚŽĨƚŚĞĐƵƌǀĞŝŶ the amount of benefits will be un- ƉůĂŶŶŝŶŐ͕ĚĞƐŝŐŶ͕ƉĞƌŵŝƫŶŐ physicians affected. ĂŶĚĚĞǀĞůŽƉŵĞŶƚĂĐƟǀŝƟĞƐ “This is an action we are taking ƚŚƌŽƵŐŚŽƵƌůŽĐĂůŬŶŽǁůĞĚŐĞ *Based on claims data independently verified by a third party to protect the beneficiaries of the ĂŶĚĞdžƚĞŶƐŝǀĞĞdžƉĞƌŝĞŶĐĞ͘ plan and the financial viability of Ħ®ÄٮĦֽÄĮĦÝçÙòù®Ä¦Äò®ÙÊÄÃÄã½ÊÄÝãÙçã®ÊÄÃĦÃÄã the Stroh Cos., which hasn’t been operating the brewery since it was sold,” said Stroh. In 1999, the 149-year-old brewer 866.902.4000 announced it was selling its 248.447.2000 www.atwell-group.com brands to Woodridge, Ill.-based www.residentialhomehealth.com Pabst Brewing Co. and Milwaukee- based Miller Brewing Co. “The takeaway here is that the
NOMINEES SOUGHT FOR M&A AWARDS Involved in a merger or acquisition in 2013? You may be eligible for Crain’s M&A Awards. Crain’s Detroit Business and the Association for Corporate Growth will honor companies and individuals in the following categories: Ⅲ Best Deal of the Year: Under $100 million and Did you kknow?? $100 million or more. The deal must The Health Care industry drives 1/6 of the U.S. economy. have closed in 2013. The ® buyer or the business sold must be in Wayne, Oakland, Macomb, TCF Bank in Michigan has lent over $100 million to Washtenaw or Livingston counties. Ⅲ Dealmaker of the Year/buyer- health care related businesses. seller.
Ⅲ Dealmaker of the Year/adviser. ® M&A experts, lenders, CPAs, Did you know that TCF Bank : consultants and attorneys, among s others, are eligible. Has health care banking experts on its team? Dealmaker candidates also must s Is committed to growing its loan portfolio in the health care segment? be in Wayne, Oakland, Macomb Washtenaw or Livingston s Finances medical practices? counties. s Finances long term care projects? Winners will be profiled in the March 24 issue of Crain’s Detroit s Finances the senior-living industry? Business and will be honored at an awards event in May. For questions concerning the nomination process or the To learn more, contact: nomination form, contact Amanda Janet Pasco at 248-740-1622 or [email protected] Duque at (313) 446-6083 or [email protected]. The deadline for nominations is Jan. 13. ©2012 TCF National Bank. Member FDIC. www.tcfbank.com 20131111-NEWS--0006-NAT-CCI-CD_-- 11/8/2013 4:15 PM Page 1
Page 6 CRAIN’S DETROIT BUSINESS November 11, 2013 7KHURDGWRWKHFRUQHURIÀFH Report: Munder Capital sale called off
STARTS HERE. BY TOM HENDERSON The report said that Munder’s got offers for as much as seven CRAIN’S DETROIT BUSINESS owner, New York City-based times EBIDTA, about $280 million. Crestview Partners LP, canceled the Crestview was the lead investor The proposed sale of Birming- sale after offers fell short of expec- in a 2006 deal valued at $302 mil- A business degree from ham-based Munder Capital Manage- tations. lion that saw Comerica Inc. sell its ment, a money-management firm According to peHub, Crestview 90 percent stake in Munder, which Wayne State University with $15.5 billion under manage- Partners had hoped to sell the com- was founded in 1985. At the time, does more than ment, has been called off, accord- pany for as much as $400 million, Munder had $16 billion under provide an academic ing to a report Friday on or about 10 times EBIDTA (earn- management. peHub.com, a website published In 2010, Munder President James foundation for success ings before interest, depreciations, by Thomson Reuters. taxes and amortization), but only FitzGerald told Crain’s that — it helps open doors. Munder was embarking on an ag- Our graduates join a gressive growth campaign to dou- ble its assets to $30 billion in three strong network of more years and $45 bil- than 31,000 successful Changing the odds lion in five alumni across Metro years, but that in our clients’ favor campaign fiz- Detroit and worldwide. zled. Whether you’re landing When asked to confirm that that first job or making the sale had your way to the been called off, executive suite, there’s FitzGerald told Crain’s: “We likely a Wayne State Thomas Nantais, MBA ’82 FitzGerald can’t comment alum nearby, ready Chief Operating Officer on that at all on the record. It’s to help. Henry Ford Medical Group press speculation.” When asked to confirm reports going back to June that Munder was for sale, FitzGerald said: “We don’t comment on that, either. We have a very firm company policy.” New York City-based Goldman Securities fraud and shareholder rights Sachs is the investment banker on Automotive supplier disputes Shareholder and partnership disputes the proposed sale. School of Business Administration Commercial and business lawsuits Family law and probate litigation According to peHub, private eq- uity firms vying for Munder in- business.wayne.edu cluded Chicago-based Thoma Bra- AIM HIGHER 248-841-2200 vo,New York City-based Blackstone millerlawpc.com Group LP and Chicago-based Flex- point Ford LLC. Blackstone was re- portedly partnering with Boston- based Advent International Corp. Tom Henderson: (313) 446-0337, [email protected]. Twitter: @tomhenderson2
CRAIN’S SEEKS NOMINATIONS Consultative FOR HEALTH CARE HEROES Working with clients Crain’s Detroit Business is seeking and their advisors for over 70 years. nominations for Health Care Heroes, a special report on health care professionals that will run in Personal life insurance consulting the Feb. 17 issue. The program will honor top-notch in a non-salesy environment. medical innovators and patient advocates. Our winners will be chosen in five Reducing estate and income taxes categories: Ⅲ Corporate achievement in health care: Honors a company Enhancing fixed income yields that has created an innovative health benefits plan or solved a problem in health care Solving family and retirement issues administration. Ⅲ Advancements in health care: Honors a company or individual Optimizing existing life insurance policies responsible for a discovery or developing a new procedure, device or service that can save lives or Business succession planning improve quality of life. and corporate benefits Ⅲ Physician: Honors a physician whose performance is considered exemplary. Ⅲ Allied health: Honors an individual from nursing or allied health fields who is deemed exemplary by patients and peers. Ⅲ Trustee: Honors leadership and distinguished service on a health care board. A panel of health care judges will choose the winners. Nominations, which are due Dec. 9, can be made at crainsdetroit.com/nominate. BIRMINGHAM, MI | NEW YORK, NY Statewide nominations accepted. Questions? Contact Bill Shea at 248.731.9500 | WWW.SCHECHTERWEALTH.COM [email protected] or (313) 446- 1626. 20131111-NEWS--0007-NAT-CCI-CD_-- 11/8/2013 1:51 PM Page 1
November 11, 2013 CRAIN’S DETROIT BUSINESS Page 7 New aluminum warehousing rules may impact prices, profits
BY DUSTIN WALSH ing nonexchange warehouses. ery to 50 days. minum equity analyst for Chicago- warehouses was shuffled from CRAIN’S DETROIT BUSINESS Wait times for aluminum to The new rules state that a ware- based Morningstar Inc., said in an warehouse to warehouse each day, leave the warehouses for a buyer house cannot load more metal in analyst note that the new rules … an incredible statistic,” Lane Goldman Sachs Group Inc.’s con- of the physical aluminum grew than it takes out. If only 3,000 met- should alleviate inflated prices of said. “Dictating that a warehouse troversial Romulus-based alu- from six weeks a few years ago to ric tons leave a Metro warehouse, aluminum and stop LME ware- will have to ship out more metal minum warehousing operation, as long as 18 months currently, ac- only 3,000 metric tons can come houses from shifting metal from than it takes in will prevent shuf- Metro International Trade Services cording to complaints. into that specific warehouse. warehouse to warehouse to side- fling between warehouses.” LLC, faces new rule changes to cut This past Thursday, the board of The rules are slated to go into ef- step the previous requirements. Dustin Walsh: (313) 446-6042, wait times for metal delivery that LME approved changes to ware- fect in April. “It was estimated that 90 percent [email protected]. Twitter: could challenge its profitability. houses to limit wait time for deliv- Andrew Lane, a steel and alu- of the aluminum in LME-registered @dustinpwalsh The London Metal Exchange, which oversees the trading of met- al futures, issued the new rules last week, forcing warehouses like Metro’s to reduce wait times for we did not invent the wheel delivery of purchased metal to 50 days from as long as 18 months. WE INVENTED The LME’s new rules stem from growing concerns over market- comfort on wheels traded aluminum and its effect on PLATINUM STANDARD manufacturing. Starting in Au- FRACTIONALCTIONAL AND MANAGEDMANAGED BBUSINESSUSINESS AAVIATIONVIATION PPROGRAMS.ROGR gust, Metro International became SERVING ALL SOUTHEASTERN MICHIGAN. the center of at least 20 ongoing civil antitrust lawsuits and an in- vestigation by federal regulators. Beverage giants such as the Coca-Cola Co. and smaller alu- minum manufacturers, some of which filed civil suits in August in FREE LEATHER UPGRADE* the U.S. District Court for the Eastern with purchase of any Stressless® District of Michigan in Detroit, say Office Recliner. Savings up to the stockpiles of aluminum held at $500 per seat. *See store for details. Metro International and other warehouses have caused prices to FINAL DAYS inflate by $5 billion since 2010. Ends Wednesday, November 20th. Metro holds 1.46 million metric tons of aluminum in its reported 34 SOUTHFIELD 248.353.9880 • TROY 248.649.2070 warehouses in metro Detroit — or NOVI 248.344.0880 • LAKESIDE 586.843.2000 about 82 percent of LME alu- GRAND RAPIDS 616.243.5466 www.gormans.com minum in the U.S. and 29 percent CORPORATEEAGLE.COM in the world. 11.11_Crain_Gormans Critics claim Metro Internation- al uses an incentive system to bring in far more aluminum than it allows to leave its warehouses, causing long delays in the delivery of the metal and, in turn, inflating prices. However, Goldman warned the The support you need today LME this year that the new rules would create more metal stored outside of LME-regulated ware- houses, negating any benefit. Lean on us to help you go the distance “Financing of stock will continue to remain attractive even with a 50- day cap,” Robin Bahr, an analyst at Rehmann’s not-for-profit advisors offer the experience Societe Generale SA in London, told Bloomberg News. “It doesn’t mean and service you need to help your organization operate that consumers will have more efficiently and effectively. From traditional tax and audit availability of physical metals. It would accelerate flow of metal from services to grant management and financial planning, the LME system into the hidden Rehmann can deliver focused solutions today ... and in system. This would seem to suggest that we would get less transparency the years ahead. rather than more.” The longer the metal stays in a Contact me today to learn more. warehouse, the more it’s traded on the market. Metro charges daily rent per ton on the metal stored in its warehouses. Metal leaving the warehouse hurts profits for the warehouse owners. Goldman is reportedly looking to sell Metro International, which CPAs & Lisa VanDeWeert, CPA it acquired in 2010 from Canton Consultants Township-based W.F. Whelan Co. Principal and Edward Schulak, president of One More Ideas 616.975.2852 ES Equities Inc., for $550 million. Team Investors bought and sold war- Your [email protected] Future Corporate More Service rants, or paper ownership of met- Investigators al, worth $14.5 trillion globally in Wealth More Experience 2012, according to Bloomberg Advisors News. According to previous LME rules, only 3,000 tons of aluminum are required to leave the warehous- es each day, but an unlimited rehmann.com | 866.799.9580 amount can enter. However, that aluminum doesn’t have to enter the physical market — it can be trans- ferred to other warehouses, includ- 20131111-NEWS--0008,0009-NAT-CCI-CD_-- 11/8/2013 4:13 PM Page 1
Page 8 CRAIN’S DETROIT BUSINESS November 11, 2013 OPINION LETTERS Detroit revival lies in Price-fixing stories raise questions Editor: brave men and women who have Crain’s Detroit Business Crain’s Oct. 14 issue had an arti- defended our liberties. There will welcomes letters to the editor. be gatherings on this day as we, as cle about Takata and other Japan- All letters will be considered for ese companies involved in price- publication, provided they are a nation, celebrate the dedication fast fix for schools fixing schemes (“Takata to pay signed and do not defame of our troops from skirmishes long $71.3M, plead guilty in seatbelt individuals or organizations. ago and from recent battles. If you etroit will never recover without a strong network of price-fixing scheme,” Page 17). Letters may be edited for length have an opportunity, it will bright- neighborhood schools, a Detroit-born and nationally This is not the first such article on and clarity. en your day to attend one of these events and shake the hand of one known developer told a community alliance here last the same issue. Write: Editor, Crain’s Detroit D of our heroes. week. You can’t build a revival on attracting 20-somethings Why has this not caused more re- Business, 1155 Gratiot Ave., action in the business and general Detroit, MI 48207-2997. In addition, over the next couple who move out once they have children. Period. of months many of the current communities? Why has the fact that Email: [email protected] That perspective, from Richard Baron, is worth hearing — es- all the companies are Japanese not men and women in the armed pecially by Detroit’s newly elected mayor and his team. raised more eyebrows? Why has no forces will be returning home for acknowledge simple gestures, Baron wins the award for “most persistent” in his decades- one pointed out the millions this the holidays. So if you encounter such as one holding open a door or any of these brave soldiers, take a long attempts to develop a successful project in his hometown. has cost auto suppliers, customers and business in general? Why has sending a birthday, new birth or moment and thank them for their With a string of successful urban projects all over the country, there been no reaction by compa- an anniversary gift. Or how about dedication to our country. It will when someone accidentally jostles Baron is finally poised to break ground next summer on a 300- nies that have tried to do business put smiles on their faces, and you you in a store and does not offer an unit apartment project east of the Renaissance Center. in Japan, only to be stopped by gov- will know that you are acknowl- apology? Detroit has a handful of high-performing schools — but ernment red tape and barriers pur- edging a person who has devoted Somehow we have lost the art of posely erected to stop them? Why their life to protecting our way of not nearly enough. (A report card on the best-performing — civility. People don’t take the time life. has no politician mentioned our charter, traditional public and private — can be found at to send “thank yous” or even utter Each time my wife, Mary, and I doors are open to them and they the words “sorry” or “excuse me.” travel to visit our grandchildren excellentschoolsdetroit.org.) cheat and close their doors to us? Maybe it’s a sign of my age, but I in St. Louis, we stop at a hotel on Baron thinks Detroit should have the same urgency on Are our troubles so great on the think we are raising a society of the outskirts of Indianapolis. As it schools that New Orleans did after Hurricane Katrina. When homefront that we just close our rude and crude youth. Perhaps it’s turns out, this hotel is a gathering eyes? Guess so. the public school system was decimated by the storm, the com- time for the schools to start teach- place for young men who have en- Bob Cramer munity embraced strong neighborhood charter schools as a Birmingham ing a course in manners and soci- listed in the Marines and are substitute. etal deportment. awaiting assignment to boot camp. The analogy is appropriate — except our educational disas- During this holiday season, we Just interacting with them on should turn the tables a bit and be- ter in Detroit is entirely man-made. Give simple thanks to their final day before departing for stow a hearty thanks to another their new life is invigorating and those in armed forces segment of our population that at inspiring. Editor: times does not receive enough ap- So, over the next couple of Court of Claims changes – again Please permit me to ruminate on preciation: the men and women in months when you encounter any a practice by some people that re- our armed forces. Today marks Republican lawmakers stand accused of stacking the deck ally irks me. Some people never Veterans Day — a day to honor the See Letters, Page 9 in their favor by bumping the state’s Court of Claims — which handles lawsuits against the state — from Ingham County Cir- cuit Court to the state Court of Appeals. The move, expected to be signed into law this week by Gov. Rick Snyder, has been soundly denounced by Democrats — TALK ON THE WEB who happen to be the majority on the Ingham bench. A little history: State law moved the Court of Claims to a From www.crainsdetroit.com single circuit court — Ingham County — in 1979 in part to re- Hey, if these payments are non- duce travel time for lawyers in the attorney general’s office, Re: Repair or replace? Reader responses to stories and refundable, more power to him. who needed to be part of lawsuit proceedings. Before that, law- I-375 at crossroads blogs on Crain’s website. Comments may be edited. John md suits could be filed in virtually any circuit court in the state. It’s an interesting idea, but As lawsuits increased, the partisanship on the Ingham walking across a busy boulevard is Re: Packard plant buyer adds $100,000 to court arguably became more apparent. And the Ingham often not easy. Look at how hard it Re: UM launches $4 billion Victors for is to walk across Jefferson Avenue deposit; county works on payment plan court’s rulings often were reversed on appeal anyway. Michigan fundraising campaign downtown. I like the idea of capping So the state will move from having cases heard by a largely This is another example of gov- it, where possible. That would pro- ernment not following internal What’s audacious about this is Democratic bench to an appeals court panel hand-picked by vide decks for more development, processes. It is obvious that Wayne the continued skyrocketing tuition at the Republican-majority state Supreme Court. or parks. County government was biased in public universities despite all this A Latin phrase may be more appropriate, but a French saying Tom Albrecht the auction process. They should be fundraising. I noticed there was no discussion here about sustained comes to mind first: plus ça change, plus c’est la même chose. The giving other bidders the same addi- Either option (cap or boulevard) tional time. But I guess favoritism tuition support. Where does all more things change, the more they stay the same. would be an improvement. has not left Wayne County. that money go? When political fortunes reverse, this may change again. Mr. Tuktoyaktuk Stephen Karniotis 238237 KEITH CRAIN: Congratulations to Mayor-elect Mike Duggan Be careful what you wish for. pital system. He inher- Southeast Michigan. need five votes, and he should If Detroit is to become a The fun is over. You might say the ited an organization Everyone wants him to hope for eight. healthy city, Duggan is going to easy part is over. that was bleeding red be a great success. Duggan’s going to have a real have to find a way to increase Mike Duggan ran a campaign ink by the barrel. I think he’ll discover challenge getting along with revenue without raising taxes — against heavy odds and won an He got to work; he that the only problem is Emergency Manager Kevyn Orr. which would just chase even overwhelming victory last week even mastered the dic- going to be where to They both have important agen- more companies and people out when he was elected mayor of De- tionary of medical start and how to spend das, and those agendas may not be of the city. troit. terms that are unique his time. There are so the same most of the time. But He will have to find a way to in- Now he’s got the job, and all to the medical busi- many things to do and they have to work together for crease population as well as at- eyes will be watching what he ness. so many problems that short- and long-term goals of the tract businesses and investment in does once he officially becomes Make no mistake, he certainly will have city. the city. mayor. once Mike Duggan is his hands full for quite Planning for the long-term pros- Duggan has got his hands full, As a former board member of elected, we’ll see him hit a while. perity of Detroit is critical to get- but I have confidence that he’ll get the Detroit Medical Center, I had the ground running. It’s a tough Certainly figuring out the mood ting the city on the right track. the job done. The business commu- the benefit of watching Duggan job, but I am sure he will have the and cooperation of the Detroit City Just like the DMC, you can’t cut nity has to give him its complete after he was hired to lead the hos- support of businesses all over Council is going to be critical. He’ll your way to prosperity. support. 20131111-NEWS--0008,0009-NAT-CCI-CD_-- 11/7/2013 4:33 PM Page 2
November 11, 2013 CRAIN’S DETROIT BUSINESS Page 9 OTHER VOICES: Help state youths to connect with STEM
With the many demands 8,654,000 total jobs in the knowledge in STEM areas to en- ence benchmark of 23. in STEM that will stay with them of today’s society, it’s easy U.S., and it is necessary able our country to grow and pros- These results indicate our state for a lifetime. for parents to sometimes that we have the skilled per. has some room for growth. To Encouraging children to aspire be a little distracted. But workers to fill these posi- Only 25.8 percent of Michigan help, we must encourage our chil- to STEM-related college degrees they must never lose sight tions. high school students are interest- dren to participate in STEM activi- and careers is key to revitalizing of one goal: creating a posi- Throughout my career ed in STEM, says STEMConnec- ties by making them interesting our state. We all must help foster tive environment in which with General Motors, I tor.org, indicating how crucial it is and exciting. Fortunately, we in opportunities where children can their children can thrive witnessed firsthand how to get kids excited about STEM. Michigan have organizations experience the excitement and and build a solid founda- important a talented, Michigan ACT test scores also il- whose missions are to get kids en- challenge of science, technology, tion for the future. The highly skilled STEM lustrate why promoting STEM in- ergized about STEM. engineering and math. The future question is, how can we workforce is to designing volvement is crucial for the suc- I am active with organizations of our students, our state and our begin to lay this vital foun- Tom Stephens and building vehicles. cess of our children. ACT.org that support STEM because I share country depends on it. dation, cultivating opportunities Without the engineers, the tech- reports that in a study of 120,451 their passion to nurture Michi- Tom Stephens is a retired vice that enable our children to develop nology, the math, the underlying Michigan students, only 35 percent gan’s next generation of innova- chairman of General Motors Co., to their full potential? science, we would not be experi- of the ACT-tested 2013 high school tors. It is important to connect chairman of the board for the One important pathway to our encing the renaissance in the auto- graduates achieved the mathemat- children — and their families — Michigan Science Center and vice kids’ economic prosperity is mobile industry. Today’s students ics college readiness benchmark of with unique and dynamic learning chairman of the board for FIRST in through science, technology, engi- need to develop an interest and 22, and only 33 percent met the sci- environments to spark an interest Michigan Robotics. neering and mathematics (STEM) education. In today’s technological society, it’s critical for our chil- dren to be STEM literate. The need for STEM education in Michigan, the home of the auto in- dustry, is quite visible, but it also is essential in virtually all other high-tech industries and business- es. According to the U.S. Bureau of Labor Statistics, by 2018 there will be an estimated 274,000 STEM- related jobs in Michigan, with
LETTERS CONTINUED ■ From Page 8
of the men and women in uniform, give them a simple “thank you” and a smile. I’ll bet you get a hearty “thank you” in return, be- cause they have not lost their sense of civility like so many in our country. Bill Kalmar Lake Orion
Celebrate diversity of ideas, not just cultures
Editor: Diversity has come to be strictly associated with ethnicity and gen- der, but left out of this definition is Creating connections that overcome obstacles requires expertise, precision, and an even more essential quality — discipline. Just as an engineer designs a bridge across a body of water, LoVasco diversity of ideas and thinking. Celebrating different cultures is Consulting Group creates objective and customized insurance, employee benefits, beautiful, but today many “di- verse” organizations are in lock- and retirement planning solutions. Individuals, families, and business owners step with regard to ideas, speech, and perspective. Thus, these “di- present us with financial challenges and goals. We respond with insightful guidance verse” workplaces and institu- focused on sustainable solutions that address today’s needs, as well as the needs of tions ostracize ideas that are out of the modern mainstream while cel- the next generation. ebrating “diversity” in external qualities. Former worldwide com- munist congresses attracted peo- Just look at our track record: For the last three generations, together with our ple of all ethnicities while pro- claiming identical “truths,” a partner carriers, we have delivered hundreds of millions of dollars in benefits to diversity that is meaningless. Conversely, in the late 18th cen- policyholders. Through a strict adherence to the fundamentals of quality, service, tury, Edmund Burke — the an- tithesis of the modern concept of integrity, and a passion for our community, we look forward to the opportunity to diversity — lucidly and com- help you achieve your financial goals. pellingly challenged the “armed dogma” (aka The Terror) of the French Jacobins when most of the intellectual class, including Jeffer- )3 $ # son and Madison, were beguiled by the revolutionaries. By all means, celebrate ethnic, 5$0 0 {! *&{ { cultural and gender diversity, but don’t confuse this with the intel- A Member Firm of M Financial Group. lectual diversity that matters Registered Representative with M Securities: most. Securities offered through M Holdings Securities, Inc., A Registered Broker/Dealer, Member FINRA/SIPC. Thomas Doran LoVasco Consulting Group is independently owned and operated. Plymouth 20131111-NEWS--0010-NAT-CCI-CD_-- 11/7/2013 4:58 PM Page 1
Page 10 CRAIN’S DETROIT BUSINESS November 11, 2013 Court move only latest GOP fast-track legislation
When Republicans in Court to judges from the majority of justices nominated by Ingham Circuit that Republicans Ⅲ Oakland County redistricting: Lansing want to get Court of Appeals. the Republican Party, would select want to move into friendlier con- The way the Oakland County com- something done, they Capitol But the question of four Court of Appeals judges from fines, but have not been able to mission district boundaries were know how to move fast. Briefings why hasn’t been an- at least two of the appellate dis- prove it. A provision in the bill redrawn every 10 years was always In a span of just 14 swered to the satisfaction tricts to serve as Court of Claims moves all pending cases before the done by the same five-member pan- days, and a little more of Democrats or the mul- judges. Ingham judges on the Court of el of elected officials and county than three hours of pub- titude of trial attorneys The chief reason given by Snyder Claims to the new Court of Claims party leaders — that is, until De- lic testimony, Senate Bill and related organizations and legislative Republicans for the upon Snyder’s signature. mocrats won a majority on that 652, which moves the that had little time to re- change is that just 3 percent of the What’s fueling Democrats’ con- crucial panel. venue for lawsuits act or prepare for the state elects the judges in Ingham cerns over the fast pace this bill has After the map was redrawn and against the state from one shift in the way such cas- County, and the matters that come rocketed through the Legislature is the possibility was real that the favorable to Democrats to es are handled. before them in these cases are of that this is not the first time since Oakland County Commission might be statewide importance. flipped to a Democrat-majority one favorable to Republi- Chris Gautz Right now, nine judges Snyder took office and the GOP commission, Republican state law- cans, went from being in- from Ingham County, However, no one has been able to took control of the House and Sen- makers sprang to action with a bill troduced to awaiting Gov. Rick which leans Democratic, serve as answer why the process has moved ate that laws have been changed in that would retroactively change Snyder’s signature. the Court of Claims, and hear cases with such haste. short order and perceived as hav- who was in charge of drawing the The bill changes who hears these against the state. Under the bill, the ing obvious political motivations. Those opposed have surmised maps. Instead of the five-member cases from Ingham County Circuit state Supreme Court, which has a there is a case currently before the They include: panel, the bill that Snyder ultimate- ly signed into law gave that power to the Oakland County Commis- sion, which was controlled by the GOP, thus ensuring its ability to re- draw the lines that kept it in power. Those lawmakers and even Sny- der said the bill was needed to re- duce the size of government and save taxpayers money, but emails “ HOW CAN DTE ENERGY uncovered after the fact showed that as the bills were being debated, GOP state representatives from HELP MY BUSINESS SAVE?” Oakland County were discussing among themselves how best to ex- plain why they were doing this and Each business is different, so DTE Energy offers an online Interactive Business tool which what they could claim was the real lets you get information tailored to your specific business environment. From grocery reason if they were asked. Ⅲ Schostak legislation: In 2012, stores to warehouses, you’ll find tips, incentives, rebates and more that will help you the Michigan Court of Appeals reduce your energy use. We also provide a number of other online tools to help our ruled that David Schostak, brother of Michigan Republican Party business customers use less energy and save more money. Chairman Bobby Schostak, had to pay $2.1 million to his lenders after one of David Schostak’s properties, the Cherryland Center mall just out- side of Traverse City, went into foreclosure. But just three weeks later, Re- DTE wants to help you save, so get started at publicans pushed through a bill dteenergy.com/interactivebusiness quickly and quietly that absolved Schostak from having to pay the money the court said he owed, as well as other developers that might find themselves in this position. Chris Gautz (517) 403-4403, [email protected]. Twitter: @chris- gautz
CRAIN’S SEEKS NOMINEES FOR 20 IN THEIR 20S Do you know a 20-something who is someone to watch? Crain’s 20 in their 20s recognition program seeks young professionals who are making their marks in the region. Candidates are not limited to any particular field or activity but include up-and-comers who are making waves as young professionals within a company, have shown success or originality as entrepreneurs, or have made local impacts in some other demonstrable way. Besides the corporate world, candidates are considered from creative industries, nonprofits and social entrepreneurship arenas. Winners will be profiled in the May 5 edition and honored at a future awards event. Nominees must be 29 or younger before May 5. Nominations are due Start saving today visit: Feb. 4. To fill out the form, visit dteenergy.com/interactivebusiness crainsdetroit.com/nominate. Questions? Contact Amy Haimerl at [email protected] or (313) 446-0416. 20131111-NEWS--0011,0012,0013,0014-NAT-CCI-CD_-- 11/7/2013 5:42 PM Page 1
November 11, 2013 CRAIN’S DETROIT BUSINESS Page 11
PUBLISHER’S NOTEBOOK
Contact Mary Kramer at mkramer @crain.com. CRAIN’S MICHIGAN BUSINESS Mary Kramer BY MATTHEW GRYCZAN But as America’s tastes in amuse- 100 percent of the fallow deer and sika Gilbert, Amway CRAIN’S MICHIGAN BUSINESS ment changed, the park fell on hard deer are missing large amounts of hair times. and have patchy haircoats and skin both took risks, ong into the 1950s and early After passing through a series of wounds. Approximately 30 percent are 1960s, Deer Forest Amusement owners, much of the park was auc- thin with prominent hip bones and and cities won Park, near the shores of Little tioned off in 2009 by cousins John S. ribs, protruding abdomens and an ob- L Paw Paw Lake in southwest and John R. Modica, who had bought vious loss of muscle mass.” In 1978, Amway Corp. bought the Michigan, drew thousands of visitors as the attraction in 2005. Shortly after the deer were re- Pantlind Hotel in downtown Grand Americans took to the road on the coun- moved, a couple arrived on the scene Rapids. There literally isn’t a deer forest in try’s new interstate highway system. from Indiana, leasing what was left of Downtown Grand Rapids wasn’t the park today. much in those days. Restaurants were Founder Cecil Potts struck on the The 140 deer that nearly trampled the park from the Modicas and scarce; downtown retail vacant. Like idea in 1949 to build a park where peo- visitors when they saw them holding promising to resurrect it as an animal Detroit until recently, by day it was refuge through a new nonprofit. bankers, lawyers and government ple could touch and feed deer after he feed buckets were confiscated by workers; by night, it was quiet. made a trip out west to national parks. agents of the U.S. Department of Agri- Using the name Jon Gadberry, the But Ada-based Amway liked to bring By the end of its 1998 season, Deer culture this spring when they found new manager of Deer Forest in Coloma its distributors for big conventions to is rallying the West Michigan commu- Grand Rapids. It was kind of Forest reported a cumulative total of that the animals were malnourished, embarrassing — and tired. So co- more than 3.5 million visitors from among other violations. nity to revive the attraction. founders Rich DeVos and Jay Van Andel every state and every country in Europe. A report from April 22 said “nearly See Deer, Page 12 decided to invest. They had the money to do it. First, it was the hotel, which reopened with a spiffy new tower addition in 1981. Then other land and buildings were purchased. People started wondering if Grand Rapids would become a “company town.” Amway was buying so much that a local wag dubbed the phenomenon as the “Amwayville Horror.” But those initial purchases were a catalyst for an amazing string of big plays that have paid off for Grand Rapids — and for those early investors. But in the beginning, some people were suspicious of Amway, that they would exert too much control. What is it about success that inspires backlash? In the days leading up to Detroit’s Nov. 5 mayoral election, I actually heard a leader in a significant minority business organization say of Dan Gilbert: “Nobody should be allowed to own that much.” Last week, a reporter from National Public Radio contacted me to ask questions that had the same edge: Is it a good thing for one entity to own so much? What if something happened to Dan Gilbert’s empire? Would Detroit taxpayers be on the hook? Gilbert Really? Yes, Gilbert owns a lot of downtown Detroit. But he started buying when A nobody else was interested. He bought vacant, underused and sadly neglected buildings and created something Detroit hadn’t seen for a while: market demand. New investors are coming in to join Jon Stolarz and Amie Gadberry him. at the gates of Deer Forest, They are developing apartments to which they hope to turn into a meet market demand. Investors are sanctuary for exotic animals. As buying in Corktown and east along the late as 1998, the park reported river. Richard Baron, a native Detroiter deer more than 3.5 million visitors. whose career was built developing deer MATTHEW GRYCZAN projects in St. Louis, New Orleans, Pittsburgh and other cities, hopes to break ground in June for 300 units along the Detroit River, east of the A fondly remembered West Michigan Renaissance Center. Sometimes it takes a spark, a catalyst, to get something going. destination has hopes for a new life, but After all, that’s the question Gilbert asked in 2007 when he spoke as our Newsmaker of the Year: I’m coming questions follow the man with the plan downtown. Who’s coming with me? tale 20131111-NEWS--0011,0012,0013,0014-NAT-CCI-CD_-- 11/7/2013 5:42 PM Page 2
Page 12 CRAIN’S DETROIT BUSINESS November 11, 2013 CRAIN’S MICHIGAN BUSINESS Deer: A plan, questions ■ From Page 11 As Jon Stolarz, the same man After entering into discussions has a past that includes incidents with Deer Forest’s owners, Stolarz of animal neglect in Canton, Mo.; began to manage the business in Chandlerville, Ill.; and Hobart, late April. “We worked all summer Ind.; and complaints made against long, 15 hours a day, for this park him by dog owners, who warn oth- and for this community,” he said. ers to stay away from his dog In an Oct. 10 interview, Stolarz training and breeding businesses. said they leased the land and pur- Stolarz, 32, also has a bench war- chased the business as an S-corpora- rant out for his arrest in connection tion, then dissolved the S-corpora- with the Chandlerville incident, and tion to create the not-for-profit Deer the state of Missouri seeks payment Forest Exotic Animal Sanctuary Inc. of more than $25,000 in civil penal- John S. Modica said Stolarz and ties and court costs for improper Gadberry leased the property and disposal of infectious wastes. equipment from them this year to Reliable, modernized grid Stolarz — who said he has taken operate the park. When asked last the last name of his wife, Amie month whether they bought and Energy is essential to the way we live, work and play. Gadberry, rather than his given dissolved the S-corp. to form a non- name — is on probation for two profit corporation, Modica said, counts of defrauding secured cred- “It hasn’t occurred yet, but that is ITC operates, builds and maintains the region’s electric itors in two criminal cases in their intentions.” Lewis County, Mo., involving Asked when Stolarz and Gadber- transmission infrastructure. We’re a Michigan-based company horses and a trailer, according to ry will buy the property and equip- the Lewis County Probation & Pa- ment, Modica said, “It’s real close, working hard to improve electric reliability and increase electric role Office in Hannibal, Mo. Sto- but not yet.” larz said his probation has ended. During the past month, Stolarz transmission capacity throughout the Midwest. Stolarz and Gadberry have been has given different accounts of soliciting money and goods to turn when or if the 501(c)(3) was the 32-acre park into a sanctuary formed, who makes up the board for exotic animals instead of per- that oversees the financial ac- petuating Deer Forest’s one-time counting of the not-for-profit and reputation as the nation’s largest whether the park is accepting con- petting zoo. They said they can tributions as a not-for-profit. www.itctransco.com build a sanctuary by purchasing Records with the Michigan Depart- older animals auctioned off by zoos ment of Licensing and Regulatory Affairs looking for younger replacements show that the articles for incorpora- and by acting as an animal rescue. tion for Deer Forest Exotic Animal But the park has lost its license Sanctuary Inc. were faxed to the to operate as a zoo. The website op- agency Oct. 17 by Rocket Lawyer of Com- erated by the USDA, which licens- merce, Calif., an online legal service, es businesses that exhibit animals, with the name of the incorporator list- shows that the park’s certificate of ed as Macheal Gomez. Neither Gad- operation was canceled Sept. 30. berry’s nor Stolarz’s name appears on Al Rodriquez, a compliance offi- the documents. cer with the Michigan Department of Stolarz has given different num- Agriculture’s Animal Industry Divi- bers as to the size of the board and sion, said the USDA transferred declines to name the board mem- the deer to a fully registered pri- bers, other than to say Gadberry is vate facility in Genesee County one and the rest are “very wealthy during the last full week of April. individuals” from the Coloma area. The state Agriculture Department is primarily concerned with the transfer of animals that may have A new direction contracted bovine tuberculosis or “I view (Deer Forest) as the chronic wasting disease. American dream,” said Stolarz, Stolarz points to the fact that the who along with Gadberry, two oth- deer were confiscated while the er full-time employees and season- park was managed by the Modicas, al help operated the park this year. who run Direct Auction Galleries Inc. Gadberry estimated that fewer in Chicago. Since May, Stolarz than 20,000 people visited Deer For- Health Care Is Shifting Ground. said, he has acquired 18 Eurasian est this year, and she marveled that fallow deer, which live in a back the previous owners were able to Be Surrounded by Solid Counsel. pen in the park. keep the business operating with “So by September of 2013, less general admission at $5. Stolarz es- than six months later, we have timated that it takes about $200,000 now gotten perfect USDA inspec- in annual revenue to break even. tions, which basically means that Since Gadberry and Stolarz have there is no errors, the animals look taken over management of the prop- good, the bedding is all in place erty, some individuals who identi- and the feeding schedule is in fied themselves as West Michigan place,” Stolarz said. residents or visitors posted entries An inspection conducted by the on the websites of the sanctuary USDA in July showed that some of and Trip Advisor, among others, the earlier infractions had been stating the park has been cleaned corrected. But USDA records also up in comparison to previous years, show that the license that the park while others panned the place. had for years to operate under Deer “This year — as embarrassed as I Forest Amusements Inc. as a Class was of it — the kids enjoyed them- C exhibitor was canceled Sept. 30. selves,” said Stolarz, adding that at- Stolarz said that while he and tendance stabilized this year. his wife were living in Hobart, he They hope to boost revenue by found a real estate ad that listed hosting field trips with schools in Deer Forest simply as 32 acres of Visit blogs.hallrender.com for information on topics related to health care law. the region and promoting Deer land. They visited in March to con- Forest as a sanctuary for animals sider purchasing it. such as some already on the “Wild, exotic animals have al- premises: Kulon donkeys, Watusi ways been an interest of mine,” cattle, a ring-tailed lemur, a wild THIS IS AN ADVERTISEMENT said Stolarz, who lives with Gad- berry in a trailer on the property. See Next Page 20131111-NEWS--0011,0012,0013,0014-NAT-CCI-CD_-- 11/7/2013 5:42 PM Page 3
November 11, 2013 CRAIN’S DETROIT BUSINESS Page 13 CRAIN’S MICHIGAN BUSINESS
From Previous Page to Stolarz or Midwest Area Detec- later, he was facing misdemeanor diana and left all the dogs behind,” the investigation and search of tion. In July, Stolarz was charged charges of animal neglect and cru- said Lore McKennedy, a part-time Stolarz’s premises. mustang and an emu. They also with animal neglect by Canton po- elty in Chandlerville. officer with Cass County Animal Con- said they have started to work “When we found Dirk, he was in lice, and he forfeited his bond after Stolarz is currently facing a trol who helped connect the dogs with the Sarret Nature Center in a kennel approximately 2 foot by 3 pleading guilty to the charge in bench warrant in several central with their owners. “He always in- Benton Harbor for a birds-of-prey foot in the back of a horse trailer January 2010, according to docu- Illinois counties connected with troduced himself as a dog trainer, exhibit and will act as a rescue for with moldy food and no water,” ments from the Municipal Division his arrest by the Cass County Sher- and people had given him these wild animals. she said. “I dropped him off at 120- of the Lewis County Circuit Court. iff’s Department on charges of ani- dogs for training.” They hope to launch some of the some-odd pounds, and he was The animal neglect case involv- mal cruelty and neglect of owner’s During the police investigation, renovations next season when probably only 65 pounds when we ing the two donated dogs was the duties for an incident in August Stolarz said, he hired two Deer Forest is open daily from picked him up. He couldn’t stand results of “not having water pre- last year when neighbors com- teenagers to take care of the dogs. Memorial Day to Labor Day. and his teeth were knocked out.” plained that a kennel full of dogs sent when the animal control offi- But he took longer to return than Upon the advice of a veterinari- went days without food and water cers showed up,” Stolarz said. he expected. an, Dirk was euthanized the next in the summer heat. Trouble with animals By early 2010, Stolarz had moved One of the dogs was a 2½-year- day, she said. “I’ve always had my hand in A report from the department to Chandlerville, Ill., to start a old German shepherd named Dirk, The day after the Cass County something animal-related and dif- business called Midwest K-9, which said deputies found 10 dogs without who was sent to Stolarz for train- Sheriff’s Department entered Sto- ferent things,” Stolarz said when he characterized as a small British food and little water in kennels lit- ing only a couple of months earlier larz’s Chandlerville home, the Ho- originally asked about his prior Labrador kennel, and he again be- tered with feces, along with a 9-foot- by his owner, Nicole Watson of bart Police Department in Indiana experience and training. “I owned gan marketing his training and long python without food or water. Woodson, Ill. Watson drove to a transportation company that breeding services. But two years “Stolarz moved out of state to In- Chandlerville after hearing about See Deer, Page 14 handled everything from live ani- mals to hard goods.” He gave no other specifics other than he received an associate de- gree in business law from DuPage College in Glen Ellen, Ill. But in the past several years, Sto- larz has had a string of incidents spanning three states involving law enforcement agencies, humane societies and individuals regarding ill treatment of dogs, horses and a 9- foot Burmese python, as well as other legal troubles. Records from the U.S. Department of Transportation show Stolarz ob- tained a license in 2006 to operate as a trucking company under the name Rapid Transport in Canton, Mo. A year later, the department revoked the license involuntarily for paper- work and log issues, Stolarz said. Ready to grow Court records from the 2nd Judi- cial Circuit Court in Lewis County, Mo., show Stolarz is on five years’ probation for felony convictions of defrauding secured creditors in a your business? September 2007 incident involving a utility trailer and an October 2008 incident involving two horses. In the same year that he lost his trucking license, Stolarz launched Let’s customize a plan to Tri State Trauma in Canton, which was established to remove biohaz- ards from floods, mold and asbestos and to clean and disinfect crime make it happen. scenes. But he came under the scrutiny of the Missouri Department of Natural Resources for transporting infectious waste without a license and improperly storing the waste at his Hannibal residence and another residence he owned in Canton. CITIZENS BANK FIRSTMERIT BANK. The Missouri DNR referred the IS NOW case to the Missouri attorney gen- eral’s office in 2010 for multiple vi- olations of the state’s solid-waste management law. “After numerous attempts to We’re here to help. compel Stolarz to properly package, transport and dispose of the waste, At FirstMerit Bank, we make it our business to know your business. Stolarz moved out of state and aban- doned the waste,” the Missouri With over one hundred years of experience creating tailored solutions DNR said. The Missouri attorney general currently seeks payment of to meet unique business needs, we can help you make the best choices more than $25,000 in civil penalties for your business. So, whenever you’re ready to chat, we’ll be here. and court costs from Stolarz. While he was operating Tri State Trauma, Stolarz said in a news sto- ry that appeared in the Press-News Journal of Canton that he launched a business in February 2009 called Midwest Area Detection Dogs. The business was meant to train two dogs — one Labrador retriever do- TO LEARN MORE, CONTACT: nated by a veterinary clinic and an- David Lochner, President, Michigan, other apparently from a family that at 248-324-8555 or david.lochner@firstmerit.com. couldn’t control the animal — to sniff out drugs for homes, schools and businesses, the story said. Member FDIC By May, several Internet mes- 1403_FM13 FirstMerit.com/MeetUs sage boards began to warn dog owners about selling their animals 20131111-NEWS--0011,0012,0013,0014-NAT-CCI-CD_-- 11/7/2013 5:45 PM Page 4
Page 14 CRAIN’S DETROIT BUSINESS November 11, 2013 CRAIN’S MICHIGAN BUSINESS Deer: A plan, and a past ■ From Page 13 received complaints about two larz in his request to start a dog horses that were in the road at an kennel and training/breeding address being rented by Stolarz. business, but the board rejected The deputies called the Humane So- the request in late March. It was ciety of Hobart Inc. to help corral the then that Stolarz and Gadberry horses. Humane Society workers visited Deer Forest. then found 10 puppies that were in Stolarz concedes that he has a pen on the property — without made mistakes in the past, but he food, water or shade in days that sees the Deer Forest project as a exceeded 90 degrees, the organiza- fresh start. “The person that tion’s report of the incident said. you’re seeing on paper is not who I Humane Society Director Bren- am,” he said. The Cass County dog da Slavik said Stolarz told the Hu- case is strictly about a former wife mane Society that he was caring who he said is trying to stir up for the puppies as a part of a rescue trouble for him in the county. operation. But “we asked to see He said he intends to fight that what medication he was treating case through a civil slander and them with, and he couldn’t pro- harassment suit against the coun- duce any of the medication.” ty and individuals. As he talks of While the Humane Society was new beginnings, Stolarz appears to trying 1 to sort out owners of the be leaning back on an old occupa- puppies, “we were getting phone tion. A Craigslist advertisement calls from people from other states for Professional Dog Training in Colo- saying he had taken their dogs for ma with Stolarz’s first name, photo his ‘doggy boot camp,’ ” Slavik said. and phone number was posted in Stolarz said the puppies were mid-October: “I am retired from brought outside “to give them my old kennel and moved on to dif- some light during the day because ferent projects,” the ad states. they’re in the basement at night.” The photo shows Stolarz posing He said it was important to note with a handsome German Shep- that there were no charges were herd dutifully heeling — a photo filed against him in Hobart and au- that Nicole Watson said is of her thorities didn’t remove the dogs. euthanized dog, Dirk. Earlier this year, Gadberry ap- Matthew Gryczan: (616) 916-8158, peared before the Hobart Board of [email protected]. Twitter: Zoning speaking on behalf of Sto- @mattgryczan
millercanfield.com 20131111-NEWS--0015-NAT-CCI-CD_-- 11/7/2013 4:26 PM Page 1
November 11, 2013 CRAIN’S DETROIT BUSINESS Page 15
Monthly China WHERE MICHIGAN DOES BUSINESS
and Yangzhou; tech center in Shanghai hina has the world’s second-largest econo- Crain’s monthly World Watch re- Employees: About 10,000 my with an $8.2 trillion nominal GDP in port showcases companies leading C2012. Major exports include machinery, Products: Fully assembled seats, seat com- the way in international business as data processing equipment, apparel and textiles. ponents, seat trim covers, fabric and seat well as those expanding their global Imports include machinery, oil and mineral fu- foam; electrical power management prod- operations. els, medical equipment and motor vehicles. ucts including wire harnesses, terminals Each World Watch Monthly fea- One big connection for Michigan business to and connectors. tures a different country. If you China is a booming consumer auto market. Chi- Top executive: Jay Kunkel, president, Asia- know of a Michigan company that American Axle plant in Changshu na drivers now have more than 240 million vehi- Pacific operations exports, manufactures abroad or cles, 120 million of which are passenger cars, ac- has facilities abroad, email Jennette American Axle & Manufacturing Holdings Inc. cording to Bloomberg News. Smith, managing editor, at SAF-Holland USA Inc. In 2010, China overtook the U.S. as the largest Based: Detroit [email protected]. single-country new-car market, according to Based: Holland Operations: Headquarters in Shanghai; McKinsey & Co. Although McKinsey & Co. fore- Operations: Two plants in Xiamen; offices manufacturing plants in Changshu and casts the growing China auto market to eventu- OMING UP in Shanghai Hefei C ally slow, it predicts an 8 percent growth until Employees: About 1,700 December: Mexico Employees: 253 2020. Products: Front axles, independent rear Products: Trailer landing gear, trailer drive axles, power transfer units, rear drive axles, brakes modules, hypoid gears, drive shafts, various Top executive: Jeff Talaga, executive vice machined components president Clients: Volkswagen Group, JAC Motors, SsangYong Motor Co., Volvo Car Corp., Chery Au- tomotive Co. TI Automotive Ltd. Top executive: Donald Joseph, managing Based: Auburn Hills director of AAM Asia Operations: Eleven manufacturing plants throughout China Autoliv Inc. Employees: 4,100 Beijing Products: Fluid carrying systems, fuel Based: Ada pumps and modules, fuel tanks, powertrain Operations: Asia headquarters, China systems, HVAC fluid systems headquarters and tech center in Shanghai; Top executive: Kim Ooi, managing direc- 12 manufacturing plants throughout China HINA tor, Asia-Pacific Employees: 8,000 C Products: Airbags, seatbelts, steering wheels, electronics, inflators, seatbelt web- Nanjing Shanghai TRW Automotive Holdings Corp. bing, airbag cushions Chongqing Wuhan Wuhu Clients: Volkswagen Group, General Motors Based: Livonia Co., Ford Motor Co, Hyundai-Kia Automotive Operations: Headquarters and two tech Guangzhou Group, Great Wall Motor Co. Ltd., Nissan Motor centers in Shanghai; 15 manufacturing Co., Toyota, Honda Motor Co., Peugeot SA, Chery plants across China Automotive Co., Geely Automobile Holdings Ltd. Hong Kong Employees: More than 8,700 Top executives: George Chang, president, Products: Brakes, steering wheels, Autoliv Asia; Arthur Blanchford, president, airbags, seatbelts, aftermarket components, Autoliv China; Thierry Masson, president, Products: Automotive products such as eight manufacturing plants throughout fasteners, engine components Autoliv Asia Electronics sealing and trim, fuel and break delivery, China Top executive: Mark Stewart, vice presi- fluid transfer, thermal and emissions and Employees: 2,750 dent, Asia-Pacific Compuware Corp. anti-vibration Products: Pistons, piston rings, liners, en- More information: 17 percent ($2.85 billion) Top executive: Song Min Lee, president, gine bearings, sealing products, ignition of TRW’s $16.4 billion 2012 global sales were Based: Detroit Asia Pacific products, friction products in its Asia-Pacific market Operations: Offices in Shanghai and Bei- Top executive: Paul Jefferson, president of jing Asia Pacific, Federal-Mogul vehicle compo- Employees: 133 nents segment Urban Science Inc. Products: IT software and services such as Based: Detroit application performance management solu- Ford Motor Co. Operations: Offices in Shanghai and Bei- tions, which help identify and resolve IT jing performance issues; Uniface, a development Based: Dearborn Employees: 27 language for apps; Covisint; and Change- Operations: Five manufacturing plants Products: Software and consulting ser- point, software for professional services throughout China vices aimed at improving dealership perfor- and portfolio management. Compuware Employees: About 25,000 mance also provides products and services for de- Products: Various vehicle models and en- Clients: Volkswagen Group, Renault-Nissan Al- veloping and maintaining mainframes. gines liance, Infiniti, Mercedes Benz AG, BMW AG, Top executive: Wayne Ju, country manager Top executive: John Lawler, chairman of Dow: 18 sites in China, including Shanghai Jaguar Land Rover Ltd., Chrysler Group LLC Ford Motor China Top executives: Hamilton Gayden, manag- Con-way Inc. Dow Chemical Co. ing director; Tom Longo, regional vice pres- ident Based: Ann Arbor Based: Midland General Motors Co. Operations: Forty-three warehouses in Bei- Operations: Eighteen manufacturing Based: Detroit jing, Chengdu, Guangzhou, Hong Kong, plants and research and development sites Operations: Nine manufacturing plants, X-Rite Inc. Shanghai, Shenyang, Suzhou, Taiwan and throughout China five offices and two tech centers throughout Based: Grand Rapids Wuhan Employees: 3,600 China Employees: 650 Products: A range of plastic, adhesive Employees: More than 35,000 Operations: Headquarters in Shanghai; Products: Warehousing, transportation chemical, automotive, water treatment, Products: Baojun, Buick, Cadillac, Chevro- offices in Beijing and Guangzhou management and third-party logistics solu- coatings and construction, oil and gas, per- let, Opel, Wuling and Jiefang vehicles Employees: About 50 tions sonal care and agricultural products Top executive: Kevin Wale, president, GM Products: Software and hardware to mea- Top executive: Thomas Pan, managing di- Top executive: Peter Wong, president, Dow China sure, formulate and match color. rector, North Asia Chemical Greater China Clients: Range of industries including printing, packaging, photography, graphic Lear Corp. design, video, automotive, paints, plastics, Cooper-Standard Automotive Federal-Mogul Corp. Based: Southfield textiles, dental and medical. Based: Novi Based: Southfield Operations: Manufacturing plants in Top executive: Peter He, vice president of Operations: Eight plants throughout China Operations: Headquarters in Shanghai, Changchun, Chongqing, Liuzhou, Nanjing, sales Employees: About 3,200 warehouses in Kunshan and Shanghai and Rui’an, Shanghai, Shenyang, Wuhan, Wuhu — Compiled by Ross Benes 20131111-NEWS--0016-NAT-CCI-CD_-- 11/7/2013 4:24 PM Page 1
Page 16 CRAIN’S DETROIT BUSINESS November 11, 2013
CRAIN'S LIST: LARGEST GREATER MICHIGAN NONPROFITS Ranked by 2012 gross receipts Total Fundraising Excess for the Organization, fiscal year end Gross receipts Gross receipts expenses expenses year Address ($000,000) ($000,000) ($000,000) ($000,000) ($000,000) Rank Phone; website Top executive 2012 2011 2012 2012 2012 Purpose of nonprofit Peckham Vocational Industries Inc. (9/2012) Mitchell Tomlinson $163.5 $247.2 158.5 $0.0 $2.5 To provide a wide range of opportunities to maximize the potential of 3510 Capital City Blvd., Lansing 48906 president and CEO people striving for greater independence and self-sufficiency. Includes 1. (517) 316-4000; www.peckham.org job training and competitive employment opportunities for people with disabilities International Aid Inc. (06/2012) Brian Anderson 162.4 131.7 162.1 0.3 0.1 To respond to biblical mandates to provide relief to the world's poor, 17011 W. Hickory, Spring Lake 49456 president and CEO sick, and suffering by providing food, medicine and other assistance, 2. (616) 846-7490; www.internationalaid.org both in the U.S. and in other countries throughout the world, in the name of Jesus Christ Hope Network (9/2012) Phillip Weaver 127.0 108.3 NA NA NA To empower people with disabilities or disadvantages to achieve their 3. 3075 Orchard Vista Drive SE, Grand Rapids 49546 president and CEO highest level of independence (616) 301-8000; www.hopenetwork.org Michigan Masonic Home Charitable Foundation Walter Wheeler 85.6 130.5 5.9 0.5 (0.2) To empower Michigan Masons to change lives through charity (3/2012) executive director 4. 1200 Wright Ave., Alma 48801 (989) 463-3141; www.michiganmasonsfoundation.org Bethany Christian Services Inc. (12/2012) Bill Blacquiere 82.3 B 76.0 8.2 3.7 NA To demonstrate the love and compassion of Jesus Christ by protecting 5. 901 Eastern Ave. N.E., Grand Rapids 49503 president and enhancing the lives of children and families through quality social (616) 224-7610; www.bethany.org services Holland Home (12/2012) H. David Claus 67.5 62.0 59.9 0.5 (1.0) Provide nursing therapy and benevolent services for aged residents in 6. 2100 Raybrook St., Grand Rapids 49546 president and CEO skilled nursing, dementia nursing, assisted living and independent (616) 235-5000; www.hollandhome.org living centers American Cancer Society Inc. (12/2012) Nancy Yaw 65.2 67.0 47.0 10.1 (2.0) Dedicated to eliminating cancer as a major health problem through 1755 Abbey Road, Lansing 48823 executive vice prevention, saving lives and diminishing suffering through research, 7. (517) 332-2222; www.cancer.org president, Lakeshore education, advocacy and service Division West Michigan Cancer Center (6/2012) Joseph Mirro 57.9 48.6 55.7 0.0 2.2 Outpatient cancer center offering multi-disciplinary, integrative 8. 200 N. Park St., Kalamazoo 49007 CEO/CMO approach to treating cancer patients in a nine-county area of southwest (269) 382-2500; www.wmcc.org Michigan Interlochen Center for the Arts (5/2012) Jeffrey Kimpton 50.7 46.8 44.8 1.3 3.7 To engage and inspire people worldwide through excellence in 9. P.O. Box 199, Interlochen 49643 president educational, artistic and cultural programs, enhancing the quality of (231) 276-7200; www.interlochen.org life through the universal language of the arts Michigan Public Health Institute (12/2012) Jeffrey Taylor 45.3 B 43.7 45.5 NA NA To maximize positive health conditions in populations and 10. 2436 Woodlake Circle, No. 300, Okemos 48864 CEO communities through collaboration, scientific inquiry and applied (517) 324-8318; www.mphi.org expertise
This list of 501(c)(3) status nonprofit organizations is an approximate compilation of the largest such organizations in Michigan but outside of Wayne, Oakland, Macomb, Washtenaw and Livingston counties. It is not a complete listing but the most comprehensive available. Van Andel Research Institute, No. 4 on last year's list, which Crain's believes would make the list, was unable to provide figures and their 2012 Form 990 has not yet been filed; a reliable estimate could not be made. Information was provided by the organizations or from state or federal filings. NA = not available. B Crain's estimate. LIST RESEARCHED BY BRIANNA REILLY ■ An expanded version of this list can be purchased at crainsdetroit.com/lists.
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People “We are spending $2 billion to affect 5 million people, and we are not changing things.”