Whenalice's Problems Become Your Problem
Total Page:16
File Type:pdf, Size:1020Kb
20151214-NEWS--0001-NAT-CCI-CD_-- 12/11/2015 4:42 PM Page 1 Readers first for 30 Years Creating a winter wonderland CRAIN’S also creates big businesses, DETROIT BUSINESS PAGE 8 DECEMBER 14-20, 2015 WhenALICE’s Wilbur Ross: The king of fixing distressed compa- nies will speak Feb. 16 at Crain’s Biggest Deals event. problems become Ross molds trash into your problem Daily struggles of low-wage workers turn into GR firm helped treasure headaches — and costs — for employers create employer By Tom Henderson resource network [email protected] By Lindsay VanHulle Reliable transportation. Medical chal- Wilbur Ross Jr. buys failing companies in Crain’s Detroit Business/Bridge Magazine lenges. Child care gaps. These are some of By Lindsay VanHulle failing industries in failing locations — and t a car wash this past summer, a the barriers that separate low-income Crain’s Detroit Business/Bridge Magazine he comes naturally by his success in doing young man noticed Tanya Allen’s workers from opportunities to move for- In the early 1990s, Fred Keller asked so. Ahat bearing the LongHorn Steak- ward in career paths and ultimately in- a machine operator at his Grand Beginning in 1976, Ross spent 24 years at house logo and asked her if she knew any- crease their incomes. Nearly 1 million Rapids-area engineering firm who Chicago-based Rothschild Investment Corp., a one who worked at the restaurant chain. households in Michigan fit this profile. had a background in social work if it worldwide investment bank, first running She told him she owned one. Allen is a What does it mean for employers? Ram- was possible to hire local homeless its bankruptcy business and then running partner with a joint venture between At- pant turnover by this workforce population residents or welfare recipients. that firm’s private equity fund, which he lanta-based Hojeij Branded Foods and its gets expensive — and quickly, to the tune of At the time, Cascade Engineering Inc. bought in 2000 to launch New York City- Detroit partner, AP United LLC. The ven- $3,400 or more per position. The challenges wasn’t facing a labor shortage. Keller, based W.L. Ross & Co. LLC with $440 million ture owns nine restaurants inside the Mc- posed by this group of workers, nicknamed the company’s founder and chairman, in assets under Namara Terminal at Detroit Metropolitan ALICE (for “asset-limited, income-con- says he was motivated more by a de- Wilbur Ross Jr. will be management. Airport. strained, employed”), even have caused sire to demonstrate that business keynote speaker for the In 2010, de- “I’d like to work,” Allen recalls the man some Michigan companies to rethink their could be part of a solution to lift peo- Crain’s Biggest Deals event, spite having saying. But once she told him where the recruitment and retention strategies. In ple out of poverty. a showcase of the biggest proved his restaurant was located, she said, he some cases, employers are offering com- A van pool was deployed to pick up M&A deals of 2015. contrarian dropped his head. He didn’t have trans- munity resource-type services, all part of an a half dozen people from Grand model, Ross portation to get there. SEE ALICE, PAGE 18 Rapids’ Heartside neighborhood, just When: 5-9 p.m. Feb. 16 raised eye- south of downtown, and bring them Where: The Roostertail, brows, if not to Keller’s firm several miles away in 100 Marquette Drive, Detroit derisive INSIDE: Kent County’s Cascade Township. But Cost: $125 chortling, Where is ALICE? Where the within a few months, virtually all of when, with the working poor live, Page 18 the new hires were gone. Register: www.crainsdetroit. Great Reces- “We weren’t prepared to receive com/events The high cost of employee sion’s effects turnover, Page 18 them,” Keller says, “and they weren’t still reverber- prepared to work.” ating, he became the biggest investor in a Income-constrained workers In some ways, Keller’s early vision single-branch bank in Troy called, grandly “make it stretch,” Page 19 laid the foundation for what today is enough, First Michigan Bank. Supplier aims to give parolees called an employer resource net- “Is Wilbur Ross crazy?” read the headline new opportunities, Page 20 work, a regional partnership of of an article in BusinessWeek in 2003, just companies that provides wrap- after he had bought a sprawling, nearly Detroit Chassis helps pay for around services to vulnerable work- idled steel plant in Cleveland and long- Goodwill caseworker Keith Bennett SEE RESOURCE, PAGE 20 struggling Bethlehem Steel. to help workers like Randy Baker. SEE ROSS, PAGE 22 © Entire contents copyright 2015 by Crain Communications Inc. All rights reserved. crainsdetroit.com Vol. 31 No 51 $2 a copy. $59 a year. NEWSPAPER 20151214-NEWS--0002-NAT-CCI-CD_-- 12/11/2015 3:19 PM Page 1 2 CRAIN’S DETROIT BUSINESS // DECEMBER 14, 2015 news, the Grand Rapids market was N-Tour (www.mapntour.com) to MICHIGAN ranked No. 5 in the U.S. for its win- develop a sales and marketing plan. INSIDE ter jobs outlook in a new survey by Ⅲ The local representing UAW THIS ISSUE ManpowerGroup, a Milwaukee- members who walked off the job BANKRUPTCIES . 5 CLASSIFIED ADS . 17 based workforce services company. from a Nexteer Automotive manufac- MARY KRAMER . 8 turing complex near Saginaw said it OPINION . 6 MICH-CELLANEOUS reached a tentative agreement with OTHER VOICES . 6 BRIEFS the automotive steering company, PEOPLE . 16 Ⅲ A $45 million project will up- The Associated Press reported. The RUMBLINGS . 23 Will there be enough energy utilities are closing coal plants and date security screening and make union said workers would return to STAGE TWO STRATEGIES . 16 for proposed data center? have ramped up warnings of a other improvements at Gerald R. their jobs during the ratification WEEK ON THE WEB . 23 statewide capacity shortfall. Ford International Airport in Grand process. Nexteer has roughly 3,000 Amid highly publicized tax law Mendenhall told the Senate Rapids, MLive.com reported. Con- union employees at the site. challenges, another potential com- committee that climate was one of struction is scheduled to begin this Ⅲ Performance Fabricating LLC COMPANY INDEX: plication of Switch Communications the reasons Switch was attracted to week on the Gateway Transforma- plans to construct a 100,000-square- SEE PAGE 17 Group LLC’s proposed move to the area, noting it would cost less to tion project, which will include con- foot corporate headquarters and Michigan is how the energy-inten- cool the data center given the aver- solidation of passenger security manufacturing plant in Fenton Foundation ranked Michigan 35th sive company would secure a reli- age temperatures in the region. checkpoints, the construction of an Township near Flint, creating an ex- among the states in overall health. able electricity supply for its pro- “Michigan has a built-in advantage area where people may watch pas- pected 52 jobs. The $9.1 million fa- Ⅲ A $1 million gift to Michigan posed data center near Grand because it’s cold,” he said. sengers depart for flights, and im- cility will be supported by a $150,000 State University’s Eli Broad College of Rapids. That’s particularly the case if provements to ticketing, baggage performance-based grant from the Business has created an endowed Las Vegas-based Switch wants to Study: GR market nation’s screening and baggage claim areas. Michigan Strategic Fund, said the professorship in management, The power its data center with renew- hottest in housing for ’16 Ⅲ Kellogg Co. said it plans to cut Michigan Economic Development Corp. Associated Press reported. The gift able sources, as it does with its greenhouse gas emissions by 65 Performance Fabricating has out- is from Al and Nancy Gambrel; Al Nevada operations, MiBiz reported. Affordable housing, home-buy- percent across its operations by grown its leased facility in Fenton. Gambrel, who earned a bachelor’s In state Senate committee hear- ing millennials and a strong econo- 2050, the Battle Creek Enquirer re- Ⅲ Michigan continues to be degree in business from MSU in ing testimony, Jason Mendenhall, my have helped make Grand Rapids ported. The Battle Creek company, ranked in the bottom half of states 1976, is senior vice president of executive vice president of the the nation’s hottest housing market citing an interest in global sustain- in a national study on state health human resources at Oak Brook, Ill.- cloud at Switch, said the company for 2016, says a study by Trulia, a na- ability goals, announced the plans system performance, according to based TreeHouse Foods. had “established relations” with the tional real estate research firm. at the New York Times Energy for the latest Commonwealth Fund’s Ⅲ Bah, humbug? A new report power provider of the site in Kent According to MLive.com, the Tomorrow Conference in Paris. “Aiming Higher” report. The state finds Michigan as the seventh-least- County’s Gaines Township. Repre- study also measured the online ac- Ⅲ Map-N-Tour, a Midland-based ranked 31st in the report, which charitable state in the nation, sentatives from Jackson-based utili- tivity of persons searching for company that develops 3-D inter- evaluated 42 indicators in 2013 and Michigan Radio reported. Accord- ty Consumers Energy, which serves homes and the number of vacant active maps and other virtual expe- 2014 in five categories that ranged ing to the “Charity Calculator” at the the territory, declined to comment homes in a community. Charleston, rience applications for web, mobile from obesity rates to high levels of financial website Wallet Hub, the to MiBiz, citing a nondisclosure S.C., was ranked second, and and tablet devices, was awarded ethnic disparity of deaths for treat- state ranked 44th in an analysis of agreement.