20100517-NEWS--0001-NAT-CCI-CD_-- 5/14/20105:54PMPage1 But itisamixofnewjobs tor said MAMAExecutiveDirec- from SoutheastMichigan, event, including60ormore companies areexpectedatthe ing Association Michigan AerospaceManufactur- meeting Tuesdaywiththe chain primerandnetworking panies attendingasupply contractors amongthecom- if thecompanyfindsnewsub- announce Tuesday. state, thecompanyexpectsto through itssuppliersinthe $25 millioneconomicimpact up to450Michiganjobsanda U.S. AirForce ing contractawardbythe Co. Page 11 crowded jobmarket, How tofindtalentina the Private200,Page20 See who’s newto pushes newplant CMS sellsmorepower, NEWSPAPER tied tonewAirForcetanker Michigan maylandjobs Second StageExtra This JustIn Crain’s Crain’s Page 3 “This isnotallnewjobs. That impactcouldescalate Chicago-based Gavin Brown projects anaerialrefuel- See ThisJustIn,Page2 List process open land-use planning to keepDetroit Mayor advised . Morethan100 could generate . ©Entire contentscopyright2010byCrainCommunicationsInc.Allrightsreserved www.crainsdetroit.com Vol.26,No.20 The Boeing the numberofstartupcompaniesandfor-profit al researchspendingin10yearsandincrease activities. university’s researchandcommercialization Research Complexintothecentralhubof gear thetransformationofitsNorthCampus recruiting, research $200M drivetofund UM rampsupPfizermove Digital unit,newaccountshelpagency thrive 150 hires,revenuegrowth McCann’s newcampaign: The goalistodoubleUM’s$1billioninannu- The hires. of thenew home tomany Worldwide — MRM marketing unit, Worldgroup’s digital and CEOofMcCann Garry Neelispresident University ofMichigan AND CRAIN’S DETROITBUSINESS B Y T R OM YAN H ENDERSON B EENE is shiftingintohigh nearly acentury, Campbell-Ewald an especiallyroughfewmonths,withWarren-based completely inJanuaryandSouthfield- based defend Detroit’s automotiveadvertisingagencieshavehad Worldgroup something ofarenaissance.Ithasseenrevenue
R But finally,somebetternews. The Birminghamofficeof grow andhired150newstaffersinthepastsix egister W.B. Doner&Co. Now! months, bringingheadcounttoabout400while Mazda Pescovitz most ofthelocallargeagencieshavebeen MAY 17–23,2010 ter thatwasboughtbytheuniversitylastsum- NCRC todeveloptheformer jects andreopenshutteredlabspaceatthe veloped technologies. jobs createdbycommercializinguniversity-de- shedding jobsasworklefttown. has quietlyundergone gional hubforMcCannWorldgroupand ’s stunninglosslastmonthofChevyafter home toseveralspecializedagencies such as . Co. base, andnewaccountsaregional McCann isseekingtodiversifyitsclient CRAIN’S DETROITBUSINESS The office,turnedthisyearintoare- BBDO Detroit Like mostagenciesinmetroDetroit, ’s largestglobaladvertisingagency. B U A Y ltra-H McCann Erickson dv B scrambling to anced ILL tidisciplinary researchpro- searchers, financenewmul- to recruitnewfacultyre- will needabout$200million Ypsilanti thattheuniversity Growth CapitalSymposium day attheannual and entrepreneurslastTues- group ofventurecapitalists gan HealthSystem CEO ofthe igh N Dr. OraHirschPescovitz, S in Troyshuttingdown HEA More onpage5... information W McCann ealth P et NATHAN SKID/CRAIN’SDETROITBUSINESS W Pfizer Inc. See McCann,Page36 University ofMichi- or Join us , is th I lanning forH spot, criticism ofGM looks beyond Bad ad? M ndividuals S General Motors VN ON OVING R&D cen- , tolda Michigan Page 36 Agency in igh and eminar this space,”Pescovitztold nance newprogramstobeginfullyutilize gin torecruitfaculty,buyequipmentandfi- feet ofofficeandlabspace. acres ofvacantland,andabout2millionsquare “We needalotofhelptogoafterthat,”shesaid. alumni, privatedonorsandindustry. mer forabout$108million. include movingUM’sOfficeofTechnology the nextthreeyears. She saidthe$200millionwouldbeneededover “We definitelyneedresourcesinordertobe- The siteoccupies174acres,including29 She saidraising$200millionwouldinvolve Pescovitz saidnear-termplansfortheNCRC to micro-manageandalackof mission seemstohaveatendency centives. ny becomeeligibleforstatetaxin- Street. Thecredithelpsthecompa- proposed at11MileRoadandTroy ley andentertainmentcomplex million movietheater,bowlingal- March 24toEmagineforits$19 $300,000 taxcreditinducement amendment aftertheDDAgavea gal challenge. precedent andmaybeopentoale- the CityCommissioniswithout decisions subjecttotheapprovalof proved lastmonthtomakeallDDA said acitycodeamendmentap- award to the wakeofaDDAtaxcredit town DevelopmentAuthorityin oversight practiceforitsDown- when itstartsimplementinganew charted legalwatersthisweek back cityoversight State lawmay not in dispute new DDArule Royal Oak’s “Unfortunately ourCityCom- The commissionadoptedthe Lawyers andRoyalOakofficials Royal Oakmayventureintoun- Plan. Plan. CRAIN’S DETROITBUSINESS B Y Emagine EntertainmentInc. C Prepare. Prepare. HAD See RoyalOak,Page35 presented by $2 acopy;$59year Crain’s H Preserve. Preserve. ALCOM See UM,Page35 on Thursday. Protect. Protect. ® ® ® 20100517-NEWS--0002-NAT-CCI-CD_-- 5/14/2010 5:47 PM Page 1
Page 2 CRAIN’S DETROIT BUSINESS May 17, 2010
collaborations with early learn- offer technical and financial as- ment Corp. THIS JUST IN The way it was: 1986 ing organizations such as the sistance to future and existing — Daniel Duggan Early Childhood Investment Corp. grocery store owners. ■ From Page 1 Throughout our 25th-anniversary — Sherri Welch The project was launched with year, Crain’s will use this space a $500,000 seed grant from the PNC Bank launches program with some existing work among to look at interesting items from Kresge Foundation. to improve early education suppliers and the positive eco- past issues. More advisers leave Campbell The Detroit Economic Growth As- nomic impact those new jobs in Defections continue from W.Y. sociation, an affiliate of DEGC, is PNC Bank plans to unveil a Michigan would generate to the At first, Campbell and Co., the longtime in- soliciting additional funding multimillion program to bolster state,” Boeing communications “ vestment banking firm in down- from public and private founda- the prekindergarten programs manager William Barksdale said. people town Detroit that is owned by tion sources. in the Detroit Public Schools later The KC-X aerial refueling Comerica Inc. — Nathan Skid this month. tanker contract, valued at $35 couldn’t even Three former investment ad- Bank, city and school officials billion for at least 179 new refuel- visers there have formed Quarton Mastronardi Produce expands are to announce the program er aircraft, originally went to comprehend the concept. Partners, which will operate as May 27 at Emerson Elementary Los Angeles-based Northrop Grum- an investment banking division Mastronardi Produce USA Inc. School in Detroit. man Corp. in cooperation with Eu- They’d say, ‘But I don’t want of Leonard & Co., a Birmingham- has leased 367,000 square feet of PNC won’t say how much ropean Aeronautic Defence and based brokerage firm. industrial space in Livonia at money is behind the program, Space Company N.V., until Boeing two pizzas.’ The three are Andre Augier, Bri- 28400-24700 Plymouth Road. but more than $1 million will won a reversal of that award in ” an Dragon and Robert Parker. All The Ontario-based company is help fund pre-K teacher profes- late 2008. Steve Jackson, will be managing directors. moving out of a 200,000-square- sional development and other New bids are due to be resub- In April, two other former foot facility in Romulus. initiatives to improve the DPS’ mitted July 9. Hungry Howie’s Pizza & Subs Inc. Campbell employees, Kevin Marsh Southfield-based Signature As- pre-K programs. Brown said the top Michigan From a May 26, 1986, article and Cliff Roesler, left to form sociates represented the tenant. The program is related to a 10- suppliers to Boeing on KC-X about the Farmington Hills-based Birmingham-based Angle Advi- Borman’s Inc., which is subleas- year, $100 million national pro- chain’s growth, including launch of would be Ann Arbor-based Kay- sors-Investment Banking L.L.C. ing the space to Mastronardi, gram designed to improve pre-K Little Caesar-style two-for-one pizza don Corp was represented by Philadel- ., the Southeast Michi- deals in Florida. Hungry Howie’s That followed the departure of education. gan operations of Cleveland- had 67 restaurants at the time. It company founders William Camp- phia-based Binswanger Manage- — Ryan Beene based Parker-Hannifin Corp. and now has 565 locations in 22 bell and William McKinley after Eaton Corp., and a Boyne City en- states, according to its website. talks failed for the employees to ORRECTIONS gineering and manufacturing buy the company back from C center for Honeywell Aerospace, a its first CEO. Comerica. Ⅲ A headline on Page E12 of the May 3 edition misspelled Xtreme Power. division of New Jersey-based The Milford-based foundation — Tom Henderson Ⅲ The weekday traffic estimates for the proposed Detroit River Interna- Honeywell International. has raised more than $2 million tional Crossing are 9,000 cars and 9,500 commercial trucks by the — Chad Halcom for Michigan children since 1995, bridge’s tentative January 2016 opening. The Michigan Department of assisting working families who Program launched to help city Transportation’s cost estimate for the bridge is about $1 billion. A story Milford foundation names CEO don’t make enough to afford of Detroit add green grocers on Page 20 of the May 3 edition incorrectly stated the daily predicted quality, licensed child care and traffic average and misstated the bridge cost. The Women’s Caring Program education programs. The city of Detroit and the De- Ⅲ A story published on Page 1 of the May 10 edition incorrectly stated has named Shelly Hendrick, for- WCP said it plans to expand its troit Economic Growth Corp. are the annual revenue of International Automotive Components Group Inc. mer president and CEO of the fundraising efforts for early edu- launching a program called the The story should have said IAC posted revenue of about $3.2 billion in Jackson Community Foundation, as cation and child care and to seek Green Grocer Project, which will 2009.
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May 17, 2010 CRAIN’S DETROIT BUSINESS Page 3 CMS Energy on sales rebound Focus
of environmental opposition and Utility pushes new plant as electricity demand rises legal challenge, and the CON process at the commission will be BY AMY LANE closely watched, not only for plant- CAPITOL CORRESPONDENT related issues but as possibly the What we’ve seen is sort of a first test of a key review process LANSING — CMS Energy Corp. is “ set up under 2008 energy laws. putting some challenges behind it bounce, if you will, off the Utilities seeking to build a plant this year. or enter into a long-term agree- In its utility business, the compa- bottom. ment to purchase power must ny is reporting improving electrici- ” demonstrate the need for the pow- ty sales and has revised a projected Dave Joos, CMS Energy Corp. er, the prudence of the proposed 1 percent drop in 2010 sales to a 2 Mapping the long road to project and its costs. percent increase, propelled by a re- The commission will review cost diversification, Page 15. bound in the industrial sector. “What we’ve seen is sort of a its plate, not the least of which is a estimates and other factors, such as Consumers Energy Co. electricity bounce, if you will, off the bottom. state regulatory review this year alternatives to the plant’s power sales that in 2009 were down 6 per- But we don’t expect the slope of that of its plans for a new coal-fired supply, and issue a certificate that cent with industrial customers bounce to continue,” said CMS power plant near Bay City. includes approved cost amounts. and 3 percent overall, this year are President and CEO Dave Joos. In August, Consumers Energy Utilities can recoup, in rates, Company index projected to be up 8 percent for in- And while the impact of auto in- expects to file a certificate of ne- cost overruns of up to 10 percent dustrial and 2 percent overall. dustry turmoil and Michigan’s cessity at the Michigan Public Ser- These organizations appear in this week’s Crain’s without seeking additional com- Still, the company expects fu- economy have been significant is- vice Commission for the proposed Detroit Business: mission approval. ture sales increases to be gradual, sues for CMS, the Jackson-based 930-megawatt plant. American Society of Employers ...... 11 climbing over time. company has other major items on The plant is already the subject See CMS Energy, Page 37 Amherst Partners ...... 15 Atlas Tool ...... 17 Automation Alley ...... 17 Beaumont Business Health Strategies ...... 14 Bevinco ...... 30 Center for Michigan ...... 33 CMS Energy ...... 3 Community Development Advocates of Detroit . . . . 37 Columbia deal may be hopeful sign Community Legal Resources ...... 37 Core Partners ...... 34 Detroit Regional Chamber ...... 4 Sale price highest since 2007; financing rare Ducker Worldwide ...... 13 Emagine Entertainment ...... 1 First Tech Direct ...... 11 BY DANIEL DUGGAN in local real estate circles, but the principals Gongos Research ...... 13 CRAIN’S DETROIT BUSINESS would not comment. Kirco President Matt Kiriluk declined to Grandmont Rosedale Development ...... 37 Honigman Miller Schwartz and Cohn ...... 34 The majority owner of the Columbia Center comment. E-mails were sent to top principals at Identity Marketing & Public Relations ...... 11 towers in Troy has sold its stake in the complex Kennedy with no response. J.C. Gibbons Manufacturing ...... 19 for $62 million, a high-value deal seen as a posi- Bernard Financial Group arranged the financ- Kirco Development ...... 3 COSTAR tive sign for the local office ing, and CB Richard Ellis was the broker. Execu- market. Kresge Foundation ...... 3 IVAL SALES tives at both firms would not comment. Lawrence Technological University ...... 13 COLUMBIA CENTER AT A GLANCE While the sale price is the R The sale is the second in a year by Kennedy. LEID Products ...... 19 Ⅲ Architect: Yamasaki & Associates highest since 2007, the finance Comparison: At the end of 2009, the Riverside building on structure is also significant. How does Marcus & Milichap Real Estate Investment Services . 34 Ⅲ Developer: Kirco Development Corp. Telegraph Road was sold to Southfield-based The deal is financed with a Columbia stack McGraw Morris ...... 35 Ⅲ Farbman Group for $5 million, one of the lowest McTevia & Associates ...... 4 Location: 101 and 201 W. Big Beaver Road, Troy commercial mortgage-backed up? Page 34 sales in the region at $25 per square foot. Ⅲ Building I: Built in 1989, 254,978 square security loan and is just the Michigan Department of Transportation ...... 7 The Columbia sale, on the other hand, is the feet, 84 percent occupied. Three largest fourth office property financed with such a loan Michigan Economic Development ...... 17 tenants: Giarmarco, Mullins & Horton; Smith highest value per square foot since 2007, at Michigan Manufacturing Technology Center . . . . . 15 this year in the United States. Barney; and Comtech Group Inc. $120. Michigan Municipal League ...... 35 Troy-based Kirco Development Corp., developer Ⅲ Building II: Built in 2000, 251,620 square feet, The current average sale price in the Detroit Michigan State University ...... 13 of both towers and formerly a minority investor, 83.7 percent occupied. Three largest tenants: Michigan Venture Capital Association ...... 6 bought out the majority investor, Seattle-based area is $46 per square foot, according to New Michigan Court of Appeals; Kemp, Klein, Umphrey, Motawi Tileworks ...... 4 Kennedy Associates Real Estate Counsel L.P. Kirco York-based Real Capital Analytics. By compari- Endelman & May P.C.; and Bodman L.L.P. Motor City Stamping ...... 16 will continue as the property manager. son, the research firm lists $130 per square foot Source: CoStar Group, Crain’s research MRM Worldwide ...... 36 Details of the deal are being discussed widely See Columbia, Page 34 MyOptimal Health ...... 14 Nemeth Burwell ...... 11 O’Keefe and Associates ...... 15 Patti Engineering ...... 19 Plunkett Cooney ...... 35 Protomatic ...... 18 Mayor urged to keep land-use plan process open Saline Lectronics ...... 18 Small Business Association of Michigan ...... 14 gon. Urban agriculture may not be ed urban planner. people from all across the country, Team Detroit ...... 36 Advocates say the answer. Until last week, the administra- who are under the impression that United Auto Supply ...... 14 The city, attendees said, should tion hadn’t said much. Bing has we have a master plan for land University of Michigan ...... 1 also move quick- said that among Detroit neighbor- reuse. This is just the beginning of U-SNAP-BAC ...... 37 residents fear ly to develop a hoods there will be “winners” and the development of that plan.” positive message WHO’S WHO “losers,” that the city lacks the The assembled group (See box) being uprooted and terminology Attendees: See revenue to support its 139 square will serve as the mayor’s advisory around the idea who was at the miles, and most often, that there’s team. Bing’s team also plans to as- Department index of developing a table, Page 37 not a plan to shrink the city. semble a citizen advisory group. BY NANCY KAFFER BANKRUPTCIES ...... 6 CRAIN’S DETROIT BUSINESS long-term land “I want to start by making one City leaders have thus far de- use strategy that will see some thing perfectly clear,” Bing told clined to give a name to the BUSINESS DIARY ...... 29 The community advocates invit- parts of the city mothballed and the group at last Wednesday’s process. In that absence, terms CALENDAR ...... 32 ed to a land use summit at Detroit other neighborhoods bolstered. meeting, which was not open to like “downsizing,” “shrinking” or CAPITOL BRIEFINGS...... 7 Mayor Dave Bing’s office last week Rumors have flown that city of- the public. “There’s been a lot of “rightsizing” frequently are used. CAREERWORKS ...... 30 had a few words of caution for him: ficials had a plan to reshape De- conversation about ‘the plan.’ For But those words, the advocates CLASSIFIED ADS ...... 32 Don’t make assumptions. Include troit, or were developing such a all of you, there is no plan. … I said, rub residents the wrong way. the community in the conversa- plan in secrecy, fueled by the city’s think there are a lot of people in KEITH CRAIN...... 8 tion. Stay away from business jar- hiring of a Kresge Foundation-fund- the media and in the community, See Land use, Page 37 LETTERS...... 8 OPINION ...... 8 OTHER VOICES ...... 9 Sign up Want more data? PEOPLE ...... 31 THIS WEEK @ To get the free, twice-monthly Download the Private 200 list at RUMBLINGS ...... 38 Second Stage e-newsletter, go crainsdetroit.com/lists. Excel version WWW.CRAINSDETROIT.COM to crainsdetroit.com/getemail. includes information on 250 companies. STAGE TWO STRATEGIES ...... 4 WEEK ON THE WEB ...... 38 20100517-NEWS--0004-NAT-CCI-CD_-- 5/14/2010 4:20 PM Page 1
Page 4 CRAIN’S DETROIT BUSINESS May 17, 2010
StageTwo Strategies A weekly look at problem-solving by second-stage companies. StageTwoStrategies is a weekly feature that analyzes a To sign up for the twice-monthly recent business decision by a second-stage company. e-newsletter, go to crainsdetroit.com/getemail. The For more second-stage coverage, go to Second Stage print section will appear in Crain’s on the crainsdetroit.com/secondstage. third Monday of each month. MOTAWI TILEWORKS Location: Ann Arbor employees to grieve, Motawi said. Risks and considerations: Nawal Description: Motawi Tileworks de- “The owners signing papers to Motawi said the ultimate fear was signs and manufactures ceramic dissolve the partnership is one that people would see the compa- art tiles. It supplies home decor thing, letting the staff say good- ny as a sinking ship and leave. boutiques and tile retailers, such bye is another,” she said. “There “I was worried about a contin- as Virginia Tile Co. was a need for closure.” ued divide in the company,” she Top executive: Nawal Motawi In March, Nawal Motawi had to said. “I worried about whether Founded: 1992 terminate a manager who contin- they felt engaged and whether I Employees: 24 ued to hang on to Karim’s ideas. could lead them forward.” Revenue: $1.9 million in 2009, She hired a lawyer to draft a sepa- The advisory board and World with $2.1 million projected for ration agreement with a sever- Cafe were meant to band the staff 2010. ance package. together, but the tactics could Problem to be solved: Nawal To ensure deep-rooted conflicts have provided new platforms for Motawi, founder and principal de- don’t resurface, Motawi formed an old arguments, she said. signer, and her business partner in-house advisory board of senior Expert opinion: Jim McTevia, and brother, Karim Motawi, be- executives to discuss organization- managing partner of Bingham gan to disagree on the manage- al and operational issues. She read Farms-based business consulting ment and direction of their arti- about the strategy in Jim Collins’ firm McTevia & Associates L.L.C., san tile company. “We couldn’t popular 2001 book Good to Great: said holding a company meeting agree on how the low-margin por- Why Some Companies Make the with the leaving partner is the tion of our business should be Leap … And Others Don’t. most important step during a sep- handled,” she said. “We just had “I needed help sorting out pri- aration. different ideas orities,” she said. “This allows “Dissolving a partnership is a EPSON Business Projector about where employees to bring issues to my lot like a divorce,” he said. “It’s A flexible solution for any auditorium, the company attention before they become a very important to maintain the classroom or boardroom. 4000 lumens was headed.” big problem.” goodwill of the children.” of color light, XGA resolution, it’s a So in Decem- Earlier this month, Nawal If possible, the leaving partner superb network-ready performer with ber, Nawal Motawi tried a structured conver- should tell staff that the breakup up to 3000 hrs lamp life. Motawi decided sation technique called World Cafe is amicable and ask that they give Model G5000 to buy out her to re-engage her staff. It was creat- the remaining partner their full brother, who ed in 1995 by Intellectual Capital Pio- support, McTevia said. ELITE White Board/Projector Screen handled mar- neers — a group of executives, re- “The staff needs to know that Cutting-edge design combines a keting for the searchers and consultants from the continued success of the com- projection screen and dry erase white White Erase Board/ growing compa- Motawi around the world — to stimulate pany is still important to the leav- board into a space-saving economical Projector Screen ny. The pair had worked together productive conversations. ing party,” he said. “This should product. StarBright4 screen with 4.0 for 17 years. “People had hurt feelings, and I be thought about long before an- gain projection surface and a The breakup rippled through didn’t want the staff thinking that nouncing the separation.” transparent dry-erase finish. AVAILABLE SIZES the small Ann Arbor shop, nobody cared about their con- McTevia recommends leaders Motawi said, lowering morale. cerns or think this company was keep the reasons behind the sepa- 60”, 80” & 96” Members of her brother’s team rudderless,” Motawi said. “We ration confidential, if possible. Paulson’s…for your commercial were also attached to his strate- used the meeting to set our corpo- “You don’t need to hang out networking, audio and video, sales gies, which was problematic. rate culture and tell the staff that your dirty laundry in front of the and installation needs! Solution: Motawi held a compa- this company was moving for- employees,” he said. nywide farewell party to allow ward.” — Dustin Walsh If your second-stage company has recently made a tough business decision, contact Michelle Darwish, entre- 37670 W. 12 Mile Rd. Farmington Hills preneurship editor at Crain’s Detroit Business, at [email protected]. NW Corner of 12 & Halsted 248.553.4100 Since 1993 Chamber nears financial goals for Mackinac conference
BY NANCY KAFFER registered at- said, with an CRAIN’S DETROIT BUSINESS tendees in re- emphasis on cent weeks, not- We cut a those changes With the Mackinac Policy Con- ing that “ that wouldn’t ference just two weeks away, the sponsorships lot of be obvious to Detroit Regional Chamber is edging and coveted attendees. closer to its financial goals. rooms at the expenses While the The chamber has met about Grand Hotel were chamber did- 86 percent of its sponsorship goals, still available. last year to n’t lose mon- said Barbara Allushuski, chair of Allushuski said ey on last the 2010 confer- she also asked come as year’s confer- ence and presi- members of the confer- ence, Carn- dent of South- ence planning committee close as we did. rike said the field-based Right to help obtain sponsor- ” margin of Management. ships. Tammy Carnrike, profit was The budget This year marks a re- Detroit Regional Chamber very slim. for the annual turn to a more normal sponsorship “We cut a lot of expenses last conference, set climate, Carnrike said, adding the year to come as close as we did,” for June 2 chamber is much closer to its she said. through June 5 fundraising goals than it was at At the same time, as social me- on Mackinac Is- this time last year. dia and use of the Internet have be- Allushuski land, is roughly The chamber was in a bind in come commonplace, the cost of the $1 million, said Tammy Carnrike, 2009 because the group had budget- conference has increased, she said. COO of the chamber. ed for that year’s conference be- Attendees expect Internet access Carnrike couldn’t give a dollar fore the economic crash, she said, and tie-ins on networking sites amount for the sponsorship goal or and the marketplace for donations like Twitter and Facebook. a specific figure for this year’s con- and sponsorships became much “This year we are on track to ference budget. more competitive in the months meet our goals,” Carnrike said. About 1,100 people already have following the downturn. “We are very, very hopeful.” registered for the conference. Organizers had to make cuts to Nancy Kaffer: (313) 446-0412, The chamber e-mailed notices to the conference’s offerings, she [email protected]. DBpageAD.qxd 5/11/2010 11:36 AM Page 1
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Page 6 CRAIN’S DETROIT BUSINESS May 17, 2010 State’s VC sector grows slightly, bucks national trend
BY TOM HENDERSON of money under management grew and managing partner of Cincin- up now for very exciting develop- report: CRAIN’S DETROIT BUSINESS from $1 billion to $1.1 billion. nati-based Triathlon Medical Venture ments in 2010, 2011 and 2012. I’m Of the $1.1 billion under man- Nationwide, the number of Partners L.L.C. Triathlon is raising very bullish.” agement by state VCs, 44 percent Nationwide, the number of ven- firms fell from 882 to 794, the num- a second fund targeted at $150 mil- Despite the economy, state VC came from non-Michigan institu- ture capital firms and the funds ber of investment professionals lion and plans to open an Ann Ar- firms had their highest number of tions, 32 percent from Michigan- they manage has declined for the fell from 7,497 to 6,828, and money bor office this fall. exits since 2004. based institutions or state-based past two years. under management fell from “A couple of state funds had Four companies were sold — funds of funds, and 24 percent from But Michigan’s venture capital $197 billion to $179 billion. very exciting exits last year, with Ann Arbor-based HandyLab Inc., high-net-worth individuals. firms have held their ground, just In 2007, VC firms nationwide very good returns,” she said, refer- Ann Arbor-based Assay Designs The average amount of money barely, according to the annual re- had $258 billion under manage- ring to the sale of portfolio compa- Inc., Livonia-based Applimation Inc. under management by each state- port of the Ann Arbor-based Michi- ment. nies by VC investors. and New Boston-based Pump Engi- based VC rose from $69 million in gan Venture Capital Association. “I think 2009 was a tough year “And most of the venture- neering L.L.C. 2007 to $73 million in 2008 and to The number of VC firms in for entrepreneurs and the venture backed companies in the state That was more than any other $76 million in 2009. Nationally, the Michigan grew by one in 2009, to community as a whole, but the made it through 2009, with the state in the Midwest and up from average amount of money under 16; the number of professional Michigan venture capitalists fared prospects for future exits or follow- three in 2008, one in 2006 and two management per firm was money managers they employ well in a couple of ways,” said on financing looking very good. in 2005. Five were sold in 2004. $347 million in 2007, $224 million in grew from 43 to 44; and the amount Mina Sooch, chair of the MVCA We’ve got a lot of companies lined Among other highlights of the 2008 and $226 million in 2009. Michigan firms had a smaller fall-off in fundraising last year than their national counterparts. In 2008, U.S. VC firms raised $28 billion and just $15 billion last year. Michigan fundraising de- clined from $173 million to $160 million. Michigan VC firms invested $131 million in 25 deals last year. That was good for 19th nationally, a decline of $115 million and three places from 2008. California, as usual, was the clear leader last year, with $8.9 billion invested in 1,137 deals. Massachusetts was No. 2, with $2 billion invested in 303 deals. 71 out-of-state venture capital firms currently have investments in Michigan-based companies, an all-time high. “Our employees really took to the concept 49 percent of current invest- that they could lower their copays and ments by state VC companies are deductibles by leading healthier lives.” in life sciences, compared to 15 percent in IT, 13 percent in al- Maureen Sisco ternative energy, 9 percent in busi- Human Resource Director ness services, 6 percent in media, Nino Salvaggio International Marketplace 3 percent in advance materials and manufacturing and 2 percent in consumer products. Of the $131 million invested last year, 44 percent was in life sci- ences, 17 percent in media, 14 per- cent in advanced materials and manufacturing, 14 percent in IT, 8 percent in alternative energy and Can changing your insurance plan help change 3 percent in consumer products. Tom Henderson: (313) 446-0337, the way your employees take care of themselves? [email protected] It did for Nino Salvaggio.
When it was introduced in 2006, Healthy Blue LivingSM was the fi rst plan that rewarded employees for making healthier choices. Today, over 100,000 Healthy Blue LivingSM members BANKRUPTCIES Clarification: A bankruptcy listing for have lowered their insurance costs by improving their health. And that’s great news for NAKAD Inc., dba Silver Garden of businesses like Nino Salvaggio International Marketplace in Troy. Southfield, published on Page 24 of the May 10 edition, was for a vendor that operated at the Shriners Silver Garden “It’s been an amazing plan for us,” says Maureen Sisco, Human Resource Director at Nino Events Center in Southfield and not Salvaggio. “Our employees really took to the concept that they could lower their copays for the center itself. The center is not and deductibles by leading healthier lives. On the business side, we have seen employee bankrupt and is open for business. absenteeism drop, productivity go up and long-term health costs that are more manageable.” The following businesses filed for Chapter 7 or 11 protection in U.S. Find out how Healthy Blue LivingSM can transform the way your business looks at health Bankruptcy Court in Detroit May 7-13. Under Chapter 11, a company files for coverage. Visit MiBCN.com/HealthyBlueLiving and learn more today. reorganization. Chapter 7 involves to- tal liquidation. Newport Woods Limited Partnership, 1050 Corporate Office Drive, Milford, voluntary Chapter 11. Assets and lia- bilities not available. Courtesy Sanitary Supply Inc., 28137 Aline Drive, Warren, voluntary Chap- Want more great ideas for healthier living? ter 7. Assets: $142,000; liabilities: Join the conversation at aHealthierMichigan.org. Leading Michigan to a healthier future.SM $268,640. Westside Development Group L.L.C., P.O. Box 68, Royal Oak, voluntary Blue Care Network of Michigan is a nonprofit corporation and Chapter 11. Assets and liabilities not independent licensee of the Blue Cross and Blue Shield Association. available. — Compiled by Brett Callwood 20100517-NEWS--0007-NAT-CCI-CD_-- 5/14/2010 5:57 PM Page 1
May 17, 2010 CRAIN’S DETROIT BUSINESS Page 7 Senate bill cuts MDOT to get federal funds LANSING — Michigan ing whether some of the that if the Legislature can pass Budget may restrict DRIC action struction of the project. would have the $84 mil- cuts may affect its abili- some reforms that have been pro- That enabling legislation is in- lion it needs to draw Capitol ty to match federal funds posed to reduce state employee The Senate version of the up- tended to be a public-private part- down federal highway Briefings in other areas. costs, including those at MDOT, coming fiscal 2011 MDOT budget nership bill, House Bill 4961, funds in the upcoming Beyond that, he said, then the cuts could be revisited. also contains language on the De- which was approved by a House fiscal year under a ver- impacts at MDOT would MITA Executive Vice President troit River International Crossing, the committee in late April. sion of the state trans- include less money for Mike Nystrom said the Senate has proposed publicly owned bridge A vote in the full House could portation budget on the operations like plowing “found solutions by taking it out of between Detroit and Windsor. come this week. move in the Senate. snow, fixing potholes, the hide of other programs that are Under the state’s current fiscal The fiscal 2011 MDOT budget, as But the cuts and fund- mowing grass, repairing actually helping our state.” 2010 budget, MDOT can spend no passed by the Senate Appropria- ing sources that would guardrails and doing For example, the Transporta- more than $2.5 million on prelimi- tions Committee, proposes lan- provide the money — af- maintenance, as well as tion Economic Development Fund nary work related to DRIC, and the guage that prohibits the depart- fecting areas that include the probable closure of is a source of money for road im- department had to submit a traffic ment from spending or com- Amy Lane state welcome centers half of the state’s 14 wel- provements and infrastructure up- study to the Legislature by May 1. mitting money toward the project and highway maintenance — find come centers “at a time when the grades that support business The budget also named June 1 as unless the Legislature has enacted no favor with the Michigan Depart- state is trying to fund spending to growth. Reducing that resource “is the intended date by which law- legislation allowing construction. ment of Transportation or some road attract tourism.” contrary to what we’re all trying to makers would adopt or reject legis- Amy Lane: (517) 371-5355, and business interests. Bartlett said Hardiman believes do here,” Nystrom said. lation that would authorize con- [email protected] “This doesn’t look like the solu- tion that allows us to serve our customers well, especially with the maintenance cuts,” said Bill Shreck, MDOT director of commu- nications. The Senate Appropriations Committee last week approved an MDOT budget that pulls together, from several areas, some $84 mil- lion that the state needs to procure some $475 million in federal high- way funds. As Crain’s has reported, Michi- gan faces the possibility that in the fiscal year that begins Oct. 1 it will have to forgo the federal funds be- cause it lacks the money for a state match. MDOT last month an- nounced plans to begin moving ahead with a reduced road and bridge program for fiscal 2011 and beyond, in light of legislative inac- tion on new funding sources. A variety of interests, including the Michigan Infrastructure and Transportation Association, have called for action on transportation reforms and revenue measures that include increases in Michi- MAKING GREEN MAINSTREAM: gan’s gas and diesel fuel taxes, and altering and raising vehicle regis- tration fees. Keeping the Green Agenda Going But tax increases have been a hard sell. In an interview earlier Register Today! this year, a spokesman for Senate Majority Leader Mike Bishop, R- June 16, 2010 Rochester, said neither Bishop nor a majority of the Senate Republi- Rock Financial Showplace can caucus view tax increases as a Novi, Michigan good idea, and government first www.autonews.com/green needs to enact structural reforms. However, Senate Republicans Confi rmed Speakers: also say that doesn’t diminish the importance of transportation fund- Nancy Gioia Paolo Ferrero Brian Carolin Rich Steinberg ing. Director Senior Vice President Senior Vice President Sales Manager Electric Vehicle Kelly Bartlett, legislative aide to Global Electrifi cation Chrysler Powertrain & Marketing Ford Motor Company Chrysler Group LLC. Nissan North America Inc. Operations & Strategy Sen. Bill Hardiman, R-Kentwood, BMW North America chairman of the Appropriations Committee’s transportation sub- committee, said Hardiman “has Going green is no longer an option or marketing ploy. Automotive companies felt quite strongly through the have to raise fuel efficiency and lower emissions. Stricter government mandates budget process that it was really paramount to match the federal are on the way in the United States. Be there on June 16 when the industry’s funds.” top executives discuss the challenges of going green, the barriers to meeting But Hardiman also believes “it’s the wrong time to raise fuel taxes.” stricter standards and ways to quicken the progress. Get the information you The proposed shifts in the need most. For details and registration, visit: www.autonews.com/green MDOT budget include: a $40.3 mil- lion reduction in highway mainte- nance; use of $15.1 million of a bal- ance that’s accrued in the state Bonus: A green “Ride and Drive” with the latest environmentally-friendly vehicles Transportation Economic Devel- opment Fund and tapping $12 mil- lion in current fund revenue; and reductions in other funds and as- sociated spending. Exclusive Lead Sponsor: Diamond Sponsor: Silver Sponsors: Bartlett said the areas were identified after a “very detailed re- view, first looking for places where there were fund balances, lapses, money not used in prior years.” Shreck said MDOT is research- 20100517-NEWS--0008-NAT-CCI-CD_-- 5/14/2010 4:18 PM Page 1
Page 8 CRAIN’S DETROIT BUSINESS May 17, 2010 OPINION State investment in higher ed pays off hat does Michigan want to be in the 21st century? This year, as in the past two or three, lawmakers and W the governor likely will go down to the wire to create a state budget. And often, state funding for higher education — one of the state’s biggest assets for now and in the future — is reduced. Nearly any institution can find ways to reduce costs. But state investment in higher education will pay off not only in a better-educated population but in building institutions that in turn build the state economy. Case in point: Last week, the University of Michigan un- folded its most detailed plan yet for transforming the former Pfizer Inc. research center on the north edge of Ann Arbor into a billion-dollar research hub. Buying the complex may be the best $100 million UM — or the state of Michigan — has ever spent. As we report on Page 1, the university plans to raise $200 million to recruit faculty, fi- nance multidisciplinary research projects and refit lab space. But the payoff will be doubling the now $1 billion research spending at UM, more startup companies and for-profit jobs created by commercializing what comes out of those UM labs. The good news for Michigan is that, on a smaller scale, this research-to-market focus is happening at other state-supported universities, from Wayne State’s TechTown to Western Michi- gan University’s life sciences incubator and a lot — including Michigan State’s vaunted agriculture research — in between. TALK ON THE WEB LETTERS State-supported universities should be viewed as invest- From www.crainsdetroit.com ments that give multiple benefits in return. Thanks for coverage
Re: Retailers see times improving Reader responses to stories and of small business Royal Oak commissioners wrong Another positive sign for our state. blogs that appeared on Crain’s Editor: Not only is this good news for website. Comments may be I want to congratulate Royal Oak city commissioners smarted when the city’s those seeking employment in the edited for length and clarity. Crain’s for its outstanding cov- downtown development authority in March awarded a retail sector, those who have had erage of small business over $300,000 tax credit to Emagine Entertainment Inc. for its the courage and foresight to start the past 25 years. planned theater complex. So it retaliated in April by adopting new businesses in this environ- Re: Mary Kramer: Entrepreneurs Crain’s has long recognized ment should be encouraged (and a new oversight policy for DDA actions. lead way in quest for jobs the growing importance of rewarded) as well. small businesses to Michigan’s We’re mystified. Michigan’s enabling legislation for down- Mark Cory Sounds like a terrific program. economy, and its current cover- town development authorities created separate legal entities Garden Fresh is a wonderful ex- age of second-stage companies with specific powers. And the tax money allocated to the DDA Re: Board votes not to take over ample of a local business with a na- is just the latest example. is reserved for downtown uses — it can’t be used to help other tional presence. Keep up the great work, and state fairgrounds as metropark Carla Schwartz parts of the city budget. best wishes for another 25 years. Hmmm … former site of Michi- Richard Temkin The DDA, arguably one of the reasons the city’s downtown gan’s premier agricultural event Re: Michigan lawmaker plans District Director has become a yardstick for other older suburbs, authorized the U.S. Small Business Administration and a city seriously contemplating Arizona-like immigration bill credit so Emagine would have “local funding” required to ob- urban farming as an Crain’s Detroit Business tain state tax credits. industry/land use option with this Why doesn’t Kim Meltzer think about working to solve the struc- welcomes letters to the editor. The commission’s new policy begs for legal action. We site in its borders. This reminds me too much of the old Reese’s can- tural problems with our tax code Write: Editor, Crain’s Detroit Business, 1155 Gratiot Ave., hope the DDA sues the city commission or at least seeks a state dy commercials, “You got choco- and Home Rule City Act in order to Detroit, MI 48207-2997. attorney general’s opinion, because the propriety of the com- late in my peanut butter … .” mission’s actions must be tested. Timothy Dinan See Talk, Page 9 E-mail: [email protected] KEITH CRAIN: Who’s going to bail out the United States? Once again, we were nice bailout for the U.S. cally or look to someone time to time, to be looking for cies in that process. enough, through the International The trouble is that we else for a bailout. someone, anyone, probably from First it was Greece, and there are Monetary Fund, to toss in a few seem to always be the It’s not that much dif- Washington, to send us a check to several countries on the chopping billion dollars of U.S. taxpayer country of last resort, ferent with our commu- bail the city out of its impending block as to who’s going to be next. money to bail out Greece as it and when it finally gets nity and our state. We, doom. Detroit might get some They don’t like the austerity pro- faced bankruptcy. around to us, there in Detroit, are always crumbs, but it’s time to under- grams that are being put into place, The crisis in Europe seems to won’t be anyone left. looking for someone to stand that it’s on its own. and so they riot in the streets. have been averted for the time be- We’re simply, like so bail us out. Michigan Michigan got its gift and had bet- We’re not going to like the aus- ing. But it would appear that there many countries, spend- used the money that ter not expect to see any more big terity programs that our politi- are many countries competing ing way more than we was supposed to be used checks in the foreseeable future. cians are going to have to put into with Greece to be next on the brink ever have any possibili- to shore up our infra- Somehow it doesn’t make sense place, and our citizens aren’t going of disaster without some sort of ty of paying back. It structure and just used to me that you can’t go into debt to to like it either. massive aid from other countries. would appear that many that one-time gift to bal- balance the Michigan budget but The financial crisis for countries If anyone took a close look at the nations of Europe are having the ance the budget, leaving the bal- you can get money from Washing- and cities is heading our way. We’d U.S.’s balance sheet, they would same problem and will either have ancing act to the next governor. ton that was part of a big debt pro- better get ready because there is no start to put together some sort of to cut their social costs dramati- The city of Detroit seems, from gram. There are some inconsisten- one to bail out the U.S.A. 20100517-NEWS--0009-NAT-CCI-CD_-- 5/14/2010 11:14 AM Page 1
May 17, 2010 CRAIN’S DETROIT BUSINESS Page 9 OTHER VOICES: Reform immigration the right way
We must look beyond to sponsor qualified undocumented workers (including The Perryman Group and Amer- demagoguery in the im- founders and idea people. 58,000 in Michigan) would trans- icans for Immigration Reform de- migration debate to the Immigrant communi- We are forcing late to a $1.5 trillion boost to the termined that deporting all undoc- benefit that the right re- ties offer much to Michi- annual GDP over 10 years, includ- umented workers would cost the form could generate for gan. While constituting highly skilled ing $1.2 trillion in consumption state $3.8 billion in expenditures, Michigan’s economy. only 7.2 percent of Michi- and $256 billion in investment. In- $1.8 billion in economic output, Two-thirds of the most gan’s population, Arabs, international creased tax revenues are estimat- and 20,339 jobs. recent American Nobel Asians and Latinos make ed at $4.5 billion to $5.4 billion in Comprehensive immigration re- Prize winners were immi- significant contributions students ... back to the first three years, with 750,000 form is necessary to adjust our pol- grants. Yet we are forcing to the state’s economy. In to 900,000 added jobs from in- icy to meet the needs of families, highly skilled interna- 2005, Arab-American their home countries. creased consumer spending. employers, and workers in the 21st tional students at Michi- Scott Cooper owned businesses generat- Asian-owned businesses in Michi- Contrast this with an estimated century. The numbers make clear gan’s universities back to their ed $7.7 billion in revenue in the gan accounted for a combined $8.3 $206 billion to $230 billion over five the benefits for the nation and home countries due to visa quotas four county metro Detroit area, re- billion in sales and receipts and years to deport the undocumented Michigan. enacted during the 1990-1991 reces- sulting in $544 million in state tax 60,517 jobs. and a potential cumulative loss of Scott Cooper is a partner and sion. Who would contribute their revenue and supporting 141,541 A recent UCLA study found that $2.6 trillion in GDP over 10 years, managing attorney at the Troy of- skills while waiting up to 20 years jobs. The most recent Census Bu- immigration reform including a not including the costs of deporta- fice of Fragomen, Del Rey, Bernsen for the right to live here? reau figures indicate Latino- and citizenship path for the 8.5 million tion. & Loewy. While we must root out visa abuse, the argument that foreign nationals simply replace U.S. citi- zens ignores studies that show that they create jobs. Nearly half of Sili- con Valley companies in 2006 were founded by immigrants, with a $500 billion impact and tens of thousands of jobs. While small and midsize busi- nesses create more jobs, our immi- gration system poorly accommo- dates those who aren’t millionaire investors. Most new ideas and businesses aren’t that capital-in- tensive, but the law fails to recog- nize this business reality. Many entrepreneurial leaders support a “Founder’s Visa” concept where venture capital firms are certified
TALK CONTINUED ■ From Page 8 make Michigan financially solvent again? The answer is that in a term-limited state Legislature, that type of meaningful hard work is not rewarded, but pablum like this, designed to appeal to a narrow constituency thereby increasing one’s chances for re-election, is all that matters. Pathetic. TS Galloway
Re: Wal-Mart donations to help with hunger relief in Michigan $600,000 over 24 months in cash and in-kind items equals $25,000 per month, and with 101 Wal-Mart superstores and Sam’s Clubs in Michigan means approximately $247.53 per outlet donated toward hunger relief efforts. They should be ashamed. R Sue Dodea A business is only as Re: Michigan House approves healthy as its employees. fireworks sales expansion Many Michigan residents are shooting these off anyway and police The HAP Health Engagement program will benefit your business in three important departments are too busy to catch ways. First, it will help you save on health care costs. You’ll pay lower premiums. them all. May as well make it legal while putting some money in the Second, it will help your employees save on out-of-pocket costs. They’ll be happier. state coffers. Mareron Third, healthier employees will help reduce absenteeism and increase productivity. Of course, your employees will also get the great coverage and benefits you expect Re: Pontiac emergency planner from HAP. Talk to your agent or call HAP toll-free at (800) HAP-PLUS today. had authority to auction Silverdome The city of Pontiac had multiple offers for that site, at higher prices, several years ago but failed to close a deal because the City Council wanted to social-engineer hap.org/healthybusiness the final deal. The other horses left the barn long ago. Get over it. Motown Expat DBpageAD.qxd 5/11/2010 10:37 AM Page 1
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May 17, 2010 CRAIN’S DETROIT BUSINESS Page 11
Extra WHAT IS A SECOND-STAGE COMPANY? Second-stage companies have between about $1 million and $50 million in annual revenue or 10-100 employees. They are led by growth-focused entrepreneurs with market-ready products or services. Survival is no longer a day-to-day worry. The Edward Lowe Foundation found that such firms provided 35.7 percent of Michigan’s jobs in 2007, more than any other company category in the state.
REPORTER’S NOTEBOOK
Nancy Kaffer covers small business and second-stage companies and Detroit and Wayne Filling the roster County government. Call (313) 446-0412 or write nkaffer @crain.com In plentiful market, companies build relationships, Nancy Kaffer Ban body art? network online to find ‘A’ players
Be consistent BY NANCY KAFFER CRAIN’S DETROIT BUSINESS A recent job applicant at Detroit- based law firm Nemeth Burwell P.C. oyal Oak-based First Tech Direct L.L.C. is made a confession at the interview — in a hiring frenzy, adding eight new she had tattoos on her arms that R employees to the tech company’s ros- would be visible unless she dressed ter of 38. to conceal them. “We’re getting lots of résumés,” said The applicant asked if that would John Silvani, president and CEO. “There that be a problem, said Patricia are a lot of people out there, but there Nemeth, founder and managing aren’t a lot of quality people out there.” partner of the firm. Like many second-stage business own- “We discussed it, and I said, ‘This ers, Silvani is looking for a mix of skill lev- is a professional environment, and els, from experienced workers to young you would have to cover them up,’ ” people that First Tech Direct can train. Nemeth said. “She said ‘No problem,’ But business owners and leaders are and was hired.” saying that in Michigan’s job market, A recent Pew Research Center poll quantity doesn’t always equal quality — found that 36 percent of 18- to 25- and that makes finding the right person year-olds and 40 percent of 26- to 40- for the job harder than ever. Companies year-olds have at least one tattoo, and like Silvani’s, though, are developing new that 30 percent and 22 percent of strategies and techniques to find the right respondents in those age groups have fit. a body piercing. “You would think in this employment For employers, this means navigating environment that it would be easy to find NATHAN SKID/CRAIN’S DETROIT BUSINESS Social media and job fairs are chances for First Tech Direct L.L.C. of Royal Oak to court prospective the hurdles of a new kind of dress code. great candidates, but it’s more difficult,” employees before the hiring process even begins. “We’re going to be constantly looking for people,” said Tom Nixon, a principal at Bingham It’s legal to bar employees from said President and CEO John Silvani. exhibiting body art, Nemeth said, but Farms-based Identity Marketing & Public Re- employers must be consistent. lations L.L.C., a 25-employee company that ting tons of résumés for a position that’s constantly looking for people,” he said. “You can require employees to reported $3 million in revenue last year. open,” Corrado said — one engineering “We’re going to have almost a backlog of conform to a professional work “You have a lot of sidelined talent that is firm that belongs to ASE received 600 ré- résumés, so when we say we need two de- environment,” she said. “Make sure desperate for work and applying for any- sumés for a single open position in just velopers we can say, ‘Well, we met two de- these issues are in a dress code thing, so you wind up wading through a one day. velopers last month.’ ” policy.” lot of clutter to find the ‘A’ players.” Silvani said First Tech Direct, a Mi- The company also has started an em- crosoft business soft- ployee referral program, offering existing The policy should apply across the In 2009, businesses re- board, Nemeth said. ported that on average, ware management com- workers a small cash award for suggest- filling a job took 45 days, pany that grossed ing a successful hire. “You can’t have one employee Our members are said Mary Corrado, presi- $6.5 million in 2009, is Nixon said Identity is increasingly us- running around with tattoos and one “ dent and CEO of the turning its hiring ing social networks to recruit candidates. not (allowed to show tattoos), unless getting tons Southfield-based process around. Instead “The question is, How do you find the there’s a business justification,” she American Society of of waiting for an open- ‘A’ players?” he said. “The old way of find- said. “Like maybe someone’s working of résumés in the warehouse.” Employers. ing and finding a per- ing them, where you place an ad and get When looking for son to fill it, company hundreds and hundreds of résumés and Employers must give leeway to for a supervisory, man- representatives are at- it’s someone’s job to go through that, is workers sporting a tattoo or piercing agerial and other position tending job fairs and even more difficult right now. What social for religious reasons, Nemeth said, professional work- professional gatherings media allows us to do is take a lot of that such as an observant Hindu woman ers, it took an aver- that’s to form relationships guesswork out of it. Just like you’d ask, whose nose is pierced. age of 57 days to fill a with workers before the ‘Does anyone have a good foot doctor?’ No But employers can check out an post in 2009, she said. open. business has a need. employee’s claim of a religiously “Our members are get- ” “We’re going to be See Roster, Page 12 motivated body piercing or tattoo. Mary Corrado, Also important is to write penalties American Society of Employers for violations in the dress code. “Are you going to send a person home to change, or tell them to go home without pay for the rest of the day? Are they going to be suspended? Are they going to be terminated? All of this is based on your organization, and you need to try to be as specific as possible.” You may want to be a little lenient for the first offense. An inexperienced worker may not understand the requirements of a professional office.
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Page 12 CRAIN’S DETROIT BUSINESS May 17, 2010 Second Stage Extra Study: ‘Poaching’ is widespread, trying to block it is unethical
BY PATRICK KIGER professor of management Tim ployers may feel betrayed by de- changing jobs may violate federal Gardner recognizes that employ- CRAIN NEWS SERVICE Gardner, co-author of a study on partures, workers are legally and antitrust laws. ers have an interest in retaining the ethics of poaching, all the ani- ethically entitled to pursue oppor- While some executives may critical talent and insists there are If there’s one thing executives mus is unjustified. It’s also consid- tunities that arise elsewhere. think poaching is practiced by ethical ways to thwart poaching. almost universally dislike, it’s ered harmful — to workers, the “There’s a temptation to look at only a few corporate pariahs, the In particular, they should con- having their workforces poached economy and ultimately to the ag- poaching as something unethical,” researchers say lateral hiring — a centrate on promoting more sym- by competitors. grieved employers themselves. Gardner said. “But that implies a euphemism for poaching — is metry — that is, in addition to ex- It’s little wonder that poaching In The Ethics of Lateral Hiring, certain ownership of employees widespread. Federal Reserve Board pecting workers to be loyal, they victims frequently respond with which has been accepted for pub- and their skill sets. You don’t own economists estimate that of the should be more loyal to workers. lawsuits —that is, when they’re lication by Business Ethics Quar- them. To the contrary, companies 4 million workers who change jobs Two key types: relational loyalty, not brokering their own clandes- terly, Gardner and colleagues that try to prevent lateral hiring of in a typical month, 80 percent are which results from better bonding tine and questionably legal “gen- David Hart of Brigham Young Univer- employees are actually the ones recruited by their new bosses. between workers and managers, tlemen’s agreements” with other sity and Jason Stansbury of Calvin being unethical.” That suggests lateral hiring may and ideological loyalty, in which companies to keep their hands off College analyze the history of em- Some legal analysts say that provide a way for human capital the employer and the workforce feel one another’s staffs. ployer-employee relationships. gentlemen’s agreements with com- to flow most efficiently to the joined by a common purpose. To Vanderbilt University associate They conclude that while em- petitors to prevent workers from places it is needed. From Workforce Management Roster: Finding ‘A’ players ■ From Page 11 one asks if anyone has a marginal foot doctor. You do the same thing online.” Like Silvani, Nixon said it’s about building relationships. “You just start networking with people, assuming you have a de- cent network built online,” he said. “You’re still doing some guesswork, but you’ve already cleared a hurdle because you know someone who knows that person.” Nixon said Nixon Identity’s two most recent hires found the company via social net- working sites. “It totally changed our hiring practices. We no longer post jobs on jobs boards because we realized it does not get the results we’re looking for and just makes more work.” Social networks, Nixon said, also give the company a feel for who the prospective employee is, a sort of preliminary vetting — and that person, in turn, can learn about the company culture. Finding the right fit is becoming more important at First Tech Di- rect, Silvani said. The company is becoming more selective in its hiring, he said, screening candidates with meth- ods such as skills assessment tests. “It’s too expensive to hire the wrong person — not just hiring them but keeping them and getting rid of them.” It’s a new way of thinking for First Tech Direct. When the company was smaller, Silvani said, “We didn’t think Learn new skills.7ITHA7ALSH#OLLEGECERTIlCATEPROGRAM(2 about it because we didn’t have the ongoing need. We had a communi- -ANAGEMENT 0ROJECT-ANAGEMENT $IGITAL&ORENSICS &INANCE ty of friends or contacts we could )NTERNATIONAL"USINESS 4AXATION "USINESS ANDMORE talk to (for referrals) and we didn’t need as many people as fast. It was more like, ‘I need one person, and then I don’t need anyone for the next six months.’ Now we have to keep this effort going.” Nancy Kaffer: (313) 446-0412, [email protected]. 20100517-NEWS--0013-NAT-CCI-CD_-- 5/14/2010 10:47 AM Page 1
May 17, 2010 CRAIN’S DETROIT BUSINESS Page 13 Second Stage Extra In need of master’s-level talent, Gongos teams up to help create it Mount Clemens is open for your business!
BY DUSTIN WALSH ing taught in East Lansing. edge,” Conway said. “What our lo- Come and see why Mount Clemens is a great place to invest! SPECIAL TO CRAIN’S DETROIT BUSINESS The program will feature a full cal employers want to see is now Downtown Mount Clemens Open House and year of classes, concurrent with becoming more of the conversa- For Auburn Hills custom mar- two paid internships at firms tion.” Property Tour Thursday, May 20, 2010 • 3:00 pm -7:00 pm keting research firm Gongos Re- such as Gongos, Ducker and Fen- Nicita said program partner- Welcome and Orientation Center • 61 Macomb Place search Inc., finding the right talent ton, Mo.-based Maritz Inc., which ships are key to stopping up the to bring aboard is one of the great- has an automotive research office brain drain. • Open House Showcasing Retail, Restaurant est challenges. But a new effort in Southfield. “We’ve been really successful and Office Opportunities could fill the talent pool with The program will leverage exist- here in Michigan, and we’d much homegrown researchers. ing graduate courses and faculty rather hire here in our state and • A variety of professionals will be available to In March, the CEO of Troy- from MSU’s marketing depart- build upon the talent here,” she provide information and assistance in opening based marketing research firm ment and incorporate new cur- said. “Participating in a program a business in Macomb County’s Entertaining Ducker Worldwide contacted Gon- riculum designed by the market- where we can show students that and Dining Capital gos to get help create a new mas- ing research firms. they can make a difference in ter’s of market research program Nicita will act as an adviser and Michigan with their skills is some- at Michigan State University’s Eli guest lecturer. John Gongos, presi- thing we hold dear.” For more information: www.DowntownMountClemens.com • 586.469.4168 Broad College of Business and Gradu- dent and CEO, will also be a guest ate School of Management. The lecturer. marketing research industry is The first students — most are growing, generating $19.2 billion employees of the three firms — globally in 2003 and more than will be sponsored by their respec- $32 billion in 2008, according to tive employers, Nicita said. Uni- the Amsterdam-based European versity officials are also courting Society for Opinion and Marketing potential students from undergrad Research. programs. And as the industry grows, so The Market Research Associa- does Gongos, going from 77 em- tion will attempt to address the ed- ployees to 100 in the past two ucation issue at its annual confer- months and from revenue of ence, June 9-11 in Boston. The $13.2 million last year to a project- association also will put together ed $16.9 million this year. an academic board in hopes of But finding master’s-level talent sparking more interest in market- in the area has been nearly impos- ing research programs at other sible for Gongos. universities. “Marketing research has always Glaser said there’s a growing been seen as a background disci- connection between business and pline,” said academia, and more industries are Camille Nicita, looking to capitalize on opportuni- principal at ties to mold new talent as the lines Gongos and blur. head of the com- The Wayne State University School pany’s recruit- of Business Administration Career ment efforts. Planning Placement Office plans to “People have organize an executive advisory been coming in board this summer, said Amber with marketing Conway, director of the office. degrees or social Nicita Stephen Strome, former chair- science degrees man and CEO of Handleman Co. and but lack the project management executive in residence at the busi- and relationship-building skills ness school, will lead the organiza- we look for.” tion of the board. Patrick Glaser, director of re- “I think for the first time univer- search standards at the Glaston- sities are really starting to think bury, Conn.-based Marketing Re- about the output of the students search Association, concurs. and are starting to think about ac- “There are only a few schools countability of their programs,” that teach this at the master’s lev- Conway said. “We’re all looking to el,” he said. “This is one of the ma- develop programs that employees jor bottlenecks.” say they need and become more The University of Georgia’s Terry proactive.” College of Business offers a master’s Daryl Weinert, executive direc- Commercial Real Estate Options Clear? degree in marketing research — tor of the Business Engagement one of the few in the country and a Center at the University of Your organization deserves an unbiased perspective Lease Renegotiation frequent recruiting ground for Michigan, said the university has Gongos. executive advisory boards to keep of ALL the building options that match your business Tenant Representation But with so few programs, every existing programs current with firm goes after the same students, strategy not just those represented by an interested trends. Incentives Nicita said. A local program like “We’re more engaged with in- party. Plante Moran CRESA is a fully integrated real the one at MSU allows local firms dustry than we ever have been,” to not only help create new talent he said. “This type of partnership estate firm that only advocates for you. Because we Sale Leaseback but access it as well. is happening more and more.” do not represent landlords or own real estate, we “We’re shaping the curriculum Most universities offer certifi- Project Feasibility for the students,” Nicita said. “The cate programs to address current have no conflicts of interest. Contact us today to see idea came about out of sheer frus- needs, he said. your options clearly. (248) 223-3500 pmcresa.com Lease Administration tration from the marketplace. Lawrence Technological University We’ve been disappointed by the recently partnered with Waltham, Buyer Representation curriculum in other programs, Mass.-based Raytheon Co.’s Troy of- and now we can produce the right fice to develop a certificate in man- Project Management type of people coming out of a local ufacturing systems for the defense program.” industry. The one-year master of science The first courses began in Janu- in marketing research program ary. will commence in the winter se- “Companies want to hire stu- mester of 2011, with all classes be- dents that already have the knowl- 20100517-NEWS--0014-NAT-CCI-CD_-- 5/14/2010 10:08 AM Page 1
Page 14 CRAIN’S DETROIT BUSINESS May 17, 2010 Second Stage Extra Restructuring Experience In Your Corner. Some businesses use new smoking law as vehicle to help workers kick the habit
BY NANCY KAFFER Michael Rogers, vice president CRAIN’S DETROIT BUSINESS of communications at the Lansing- We’re trying a based Small Business Association of With a state law that bans smok- “ Michigan, said his organization’s ing in most workplaces as of May carrot approach. membership has expressed in- 1, Albert Goldstein, president of ” creasing interest in smoking ces- United Auto Supply, thought it would Albert Goldstein, sation programs, and he expects be a good time to encourage his United Auto Supply that to continue. employees to quit. lost time from smoking employees. “I think there’s no question that UAS, which reports $37 million The program doesn’t offer phar- this is a trend for the future,” in sales in 2009, has five locations maceuticals, but does discuss such Rogers said. “(Business owners) and some 125 employees, about aids as part of the program, he said. see the benefits of employees who 25 percent of whom smoke, Gold- “In the sessions, we talk about feel better about their health, they stein estimates. wanting to quit, strategies for quit- see less employee absenteeism, Encouraging employees to stop ting, holistic approaches in quit- employees not taking cigarette smoking is a win-win financially, ting, making a quit plan, building a breaks. … There’s a lot of overall Goldstein said. The company re- ‘quit kit,’ with tools and resources recognition of the benefits of well- coups time formerly lost to smoke for substituting habits for smok- ness programs.” breaks and the workers save mon- ing,” Guthrie said. “One thing that Even if health care costs don’t go ey previously spent on smoking. really makes this program different down, the small-business owner “I figure if the average person is we do a lot of talking about what will see a benefit because they’re who smokes is spending $12,000 to smoking is doing to your body, in close to employees, he said. $15,000 a year, I probably have layman’s terms. We have fun, but At UAS, just one employee has that much loss in productivity it’s shock value in a way.” signed up for the program so far. and additional absences from Michigan’s new smoking re- But Goldstein said that’s OK. Bob Mollhagen sickness, compared to my non- strictions and rising health care “He’s going to be the poster child, [email protected] smoking employees,” Goldstein costs are prompting employers to and he will be the go-to person for said. The employees’ benefit: consider offering such programs, the people who are smokers to pro- “That’s got to be $6, $10, $12 (a Spring said. mote it, if it works for him,” he said. day) after taxes they invest in “Very consciously, employers “And after him, we will continue to their smoking habit that they are looking at health care costs and offer the program. It’s a good start. could easily roll into an IRA.” what they can do to control them,” That’s the way I look at it.” And, he said, it’s the right thing he said. “Smoking cessation is key, Nancy Kaffer: (313) 446-0412, to do. and it has measurable outcomes.” [email protected]. “With society finally getting the message, we figured, why not try 866-4VARNUM www.varnumlaw.com to help people instead of moving I Novi (Metro Detroit) I Grand Rapids I Kalamazoo I Grand Haven I Lansing ashtrays far away from the build- ing? We’re trying a carrot ap- proach,” Goldstein said. So he consulted his insurance agent, who pointed him toward a William Beaumont Hospital smoking- cessation program. “You can give people pamphlets, but at the end of the day I think most successful plans involved patches, medications. … I’m not saying better living through chem- istry, but I think it involves more to break a very difficult habit,” he said. “I’m offering to employees to pick up half the cost for this. I’ll pay for their time if they’re going to do it here. I offered to pick up half the cost of spouses, and if they are successful, my wife and I will reward them again with some gift to offset the other half of the cost. Our goal is to help them help them- selves, and at the end of the day, everybody will be better off.” A six- to eight-week, seven-ses- sion smoking-cessation program costs about $100 per person, said Jenny Guthrie, program coordina- tor for Beaumont Business Health Strategies. When contacted by a business owner, said Tom Spring, program manager of myOptimal Health, the onsite component of Beaumont Business Health Strategies, the first step is to assess the compa- ny’s workforce. “The first thing we do is try to help evaluate whether it’s a need for their population, which in many cases it is,” he said. “We try to evaluate who we’re working with and what the goals are for a smoking-cessation program and if our program fits their need.” On average, Spring said, employ- ers lose roughly $1,500 annually in 20100517-NEWS--0015-NAT-CCI-CD_-- 5/14/2010 10:06 AM Page 1
May 17, 2010 CRAIN’S DETROIT BUSINESS Page 15
REPORTER’S NOTEBOOK
Ryan Beene writes about auto suppliers, the steel industry, higher education and Livingston and Washtenaw counties. Call (313) 446-0315 or write [email protected] the new supply chain Ryan Beene Supplier cash flow is a mixed bag
It takes more than ambition to diversify into a new industry. It also takes cash. Ask any midmarket to small Worth supplier about how they felt last year about the challenges facing their business, and capital availability would be high on the list. The shortage was especially pronounced for smaller suppliers working to diversify into aerospace, defense and other nonautomotive the long industries. I heard stories frequently last year that went something like this: “We’ve got this product or technology that will work for other industries, but our bank won’t help us buy the equipment or fund the prototype construction we need to get ROBERT CHASE in the door.” drive Protomatic Inc. in Dexter started effectively branching out from the automotive sector after Manufacturers were turned down the machine shop took part in a Michigan Manufacturing Technology Center program, said simply for being in automotive. For Doug Wetzel, vice president and general manager. banks, the risk of losing money on a loan issued to a company whose tier- one or OEM customer goes belly-up Road to diversification takes patience; trade groups, government outlets can help was too great. But traditional cash flow-based BY MICHELLE MARTINEZ identifying prospective customers in new lending is beginning to become SPECIAL TO CRAIN’S DETROIT BUSINESS WHERE TO TURN industries and developing new sales mes- available again in limited situations, sages. Website critiques and tweaks to says Sheldon Stone, a partner and ichael Boudreau has this advice for Resources: Programs match companies boost a company’s search engine perfor- auto supplier restructuring expert with companies looking to branch out and customers, Page 17 mance are part of the package, Helfrich Birmingham-based Amherst Partners M into new industries: Brace yourself said. L.L.C. for a long ride. CASE STUDIES The whole point, he said, is to walk Stone said a year ago that Boudreau, director of Bloomfield Hills away with a selling road map that in- How four companies took the leap in learning “automotive” was looked at like a turnaround firm O’Keefe and cludes quantifiable goals and actions, Associates, said that while new industries and expanding their customer four-letter word. So while big-bank bases: such as increasing sales or online traffic. lenders like Comerica Bank and Chase diversification has become a Protomatic Inc., Page 18 Protomatic Inc., a Dexter-based machine are beginning to re-enter the market recessionary buzzword, in shop, went through the center’s program Saline Lectronics Inc., Page 18 with traditional credit lines, the flow of practice “it’s a lot harder at the end of 2007, said Doug Wetzel, vice J.C. Gibbons Manufacturing Inc., Page 19 capital is still more like a leaky faucet than everyone thinks. It’s a president and general manager (See story, than a fire hose. long-term project that takes Patti Engineering, Page 19 Page 18). The automotive-heavy company “It really depends on the patience and persistence.” had been making progress attracting institution,” Stone said. “There are Few regions can beat he said. “Many of these companies are work from medical-equipment suppliers banks that are going back into the Southeast Michigan’s manu- hurting in a big way.” but needed help fine-tuning its sales and market and trying to make nice.” facturing expertise, The nonprofit center takes companies Boudreau marketing for the new industry, he said. Asset-based lenders, with their Boudreau said, and automo- through the steps they would need to di- About 90 percent of the company’s higher interest rates and shorter tive suppliers’ understanding of exacting versify with a weeklong crash course. business came by referral. maturities, are still very active, he OEM standards and supply line efficien- Step one, he said, is understanding what “Most small businesses don’t market said, but these are still uncertain cies could transfer to a number of indus- it is that they do best and how it might be themselves on the industrial side,” Wet- times. Some lenders are still skittish tries. But businesses need to relearn the applied to another industry. zel said. about lending to suppliers with GM less-tangible skills of new-business “They talk about After the program, Protomatic started and Chrysler business. prospecting and marketing before they what they make and to target potential customers more effec- Stone said he’s still seen a few can become qualified suppliers for a new what they do for a par- tively, leveraging a more-polished sales cases of banks not lending to certain market, let alone add new revenue to the ticular industry, but I force and marketing approach. The com- suppliers that even have purchase bottom line. And that corporate evolution want to know the com- pany found that its greatest opportunity orders in hand. can take years. petencies that allow resided in machining parts for orthope- And while Stone’s business These are lessons that Keith Helfrich, them to make the dic devices such as spine implants and assisting financially distressed auto program manager of market diversifica- gear,” Helfrich said. joint replacements, a fast-growing seg- suppliers has been down lately, as is tion at the Michigan Manufacturing Technol- “It’s something they ment of the medical-device industry, Wet- the case with most auto ogy Center, teaches many small and mid- could do for a different zel said. size manufacturers that often come to the industry. restructuring firms, he said if the Helfrich Medical devices now make up nearly 80 industry gains too much momentum center in crisis. The program uses percent of Protomatic’s business, com- too quickly, more suppliers that “While this is about diversification, it’s hands-on computer exercises to walk mothballed operations during last also about achieving sales growth now,” company teams through the process of See Diversification, Page 16 year’s downturn could find themselves without the bankroll they need to fund the upturn. A DIVERSIFICATION PLAYBOOK “At the current run rate, you would What’s the best advice for a company looking to diversify? We asked Michael Boudreau, director of Bloomfield Hills turnaround firm O’Keefe and see some companies starting to Associates; Keith Helfrich, program manager for market diversification at the Michigan Manufacturing Technology Center; and Tobias Schoenherr, experience trouble,” he said. assistant professor, supply chain management at Michigan State University. Here’s what they said: If the North American production ■ ■ ■ ■ ■ volumes creep closer to a rate of Assess the things that set Do your homework. For example, First, approach customers that Leverage supplier Be prepared you apart from your use the North American Industry allow you to leverage existing clients and other for a lot of 11.7 million to 12 million vehicles, competition. This will help you Classification System codes, a strengths and equipment. Second, external resources rejection. Be “there is going to be a significant identify what problems you can government statistical tool that consider investing in new technology for technical and persistent. increase of the number of suppliers in solve in other markets. classifies companies by industry or equipment after gaining a healthy industry knowledge. distress.” category, to drill down to prospects. amount of business to service. 20100517-NEWS--0016-NAT-CCI-CD_-- 5/14/2010 10:05 AM Page 1
Page 16 CRAIN’S DETROIT BUSINESS May 17, 2010 Focus: The New Supply Chain Diversification: A slow process that can eventually pay off big ■ From Page 15 pared with about 40 percent four not how business is done today. “That just gives you an opportuni- years ago. Automotive and trans- “We have to drag them kicking ty to be on the quote list. When a portation comprise less than 6 per- We have to drag (companies) kicking and screaming into the 21st centu- new project comes up, you may not cent of its sales. Defense and re- “ ry,” he said. win the bid. And if you do win it, newable energy customers round and screaming into the 21st century. Beyond marketing, challenges it’s another six months before you out the mix. ” still exist, Boudreau said. start to (see revenue from that).” “We’re going to do another round Keith Helfrich, Michigan Manufacturing Technology Center Companies will likely need to New customers also may want with (the MMTC) in 2010,” Wetzel learn the supply-chain vernacular to test new suppliers with smaller said. “It keeps us fluent in the tools certification preparation. “A lot of what we do is develop of a new industry; and even after parcels of business before firmly and techniques that are relevant.” The program costs $18,750, but the very basics of sales and market- they win a new customer they will integrating them into the mix, Since MMTC was founded in that can be lowered through state ing with tools used today in the need to be patient through initial Boudreau said, something that 2006, more than 130 companies grants, Helfrich said. The MMTC marketplace, which is different bidding processes and test runs. will likely take a year or two. have completed the program. is the state’s vendor for the Manu- than it was five, 10 or 25 years ago,” “Once you have a new customer, Automotive suppliers used to About one-third opt for additional facturing Extension Partnership, a he said. “They’ll say, ‘I have to start they say you need to be a qualified supplying high-volume contracts services such as a website over- national program aimed at making selling again. I guess I need to take supplier. That might take another may be confronted with another haul, six sigma training or quality manufacturers more competitive. someone out to lunch.’ But that’s six to eight months,” he said. challenge when they start to sup- ply lower-volume industries such as aerospace and medical devices, Boudreau said. “In aerospace, you don’t make 2 million planes a year,” he said. The process is one that Motor City Stamping CEO Judy Kucway is fast learning. The 40-year-old Chester- field Township-based automotive supplier is working to branch out into supplying defense contractors, something Kucway said her compa- ny was recruited to do because of its minority-owned status. Motor City already has a vendor code to service large defense in- dustry manufacturers, but it will likely take “two to three years to get a quote,” Kucway said. “Everyone is trying to diversi- fy,” she said. “We just started. It’s a slow buildup. They’ve got a good base of suppliers right now. ... You have to be competitive and quote the process. It’s a lot different than automotive. It’s a learning curve you have to get on right away.” Motor City invested in a $2.1 mil- lion welding system that can be used to service its automotive and defense customers, she said. And al- though the company is just starting in defense, Kucway already expects this year to be better than last. In 2009, the company had rev- enue of about $36 million. This year, Kucway expects to hit $45 million, which would put it square with its sales in 2008. “We’re not going to let any grass grow under our feet,” Kucway said. Tech curriculum targets jobless
AT&T Inc. has contributed $150,000 to a Southeast Michigan effort aimed at training workers for technology jobs. AT&T and other telecommuni- cations and technology companies joined with Henry Ford Community College earlier this year to an- nounce the Michigan Alliance for High-Tech Skills Training, an ef- fort to create curriculum to help students and workers who have lost their jobs gain employment in an array of industries. The program’s curriculum will include business and technology classes the college currently pro- vides, as well as new classes creat- ed out of input from the business alliance. The curriculum is expect- ed to be available to students be- ginning this fall. — Amy Lane 20100517-NEWS--0017-NAT-CCI-CD_-- 5/13/2010 3:54 PM Page 1
May 17, 2010 CRAIN’S DETROIT BUSINESS Page 17 Focus: The New Supply Chain Programs match companies, customers BY CONSTANCE CRUMP SPECIAL TO CRAIN’S DETROIT BUSINESS HELP BREAKING THE ICE While there is no all-inclusive These resources can provide a clearinghouse for supply chain road map to breaking into new markets: companies looking to meet poten- Ⅲ tial new customers, there are a Michigan Capability Database: www.michiganadvantage.org number of fledgling matchmaking /Diversification/Manufacturing services. /Default.aspx Programs akin to an eHarmony for Ⅲ OESA Automotive Supplier businesses are in place or in the Technology Forum: http://oesa.org Andrea DeLonge works at a number of area associa- and click on events. tions and state agencies. The Michi- Ⅲ Michigan Manufacturing ering the best way to answer the de- gan Economic Development Corp. is Technology Center: www.mmtc.org mand. creating a Michigan Manufacturers Ⅲ Michigan Economic Development “We don’t have a formal network- Capability Database (MichCap) to Corp.: www.michiganadvantage.org ing mechanism in place yet, but we promote manufacturers to original- /Diversification are looking at industry-specific equipment manufacturers and as- Ⅲ University of Michigan’s roundtables starting this fall,” said sist with matchmaking. Surviving to Thriving program: Danielle DeLonge, Alley business The database follows a series of www.irlee.umich.edu accelerator client champion. summits the MEDC hosted last year Ⅲ Automation Alley: Local manufacturers are taking Cedar Point is the perfect place for a company outing. to help suppliers assess their readi- www.automationalley.com action on their own as well. It’s fun, affordable, and we do all the work for you! ness to diversify and give access to Ⅲ NextEnergy: www.nextenergy.org Founded as an auto supplier in industry experts and information 1962, Atlas Tool Inc. in Roseville is di- on matching grants for training. OESA senior vice president, indus- versifying its customer base No matter how big your group is, we’ll plan an awesome In addition, the Original Equipment try analysis and economics. OESA through industry associations, day for everyone. Plus, Cedar Point offers groups a Suppliers Association, the U.S. Depart- is based in Troy. sales consultants and acquain- ment of Energy, the Federal Laboratory tances that are associated with oth- The tech forum will be part of a wide variety of tasty meal options. And you only pay for Consortium for Technology Transfer, er industries, such as defense and larger strategy of exposing compa- group members that show up. Oak Ridge National Laboratory and the alternative energy. nies to opportunities within the fed- MEDC will launch a clearinghouse “It’s painstaking, but it seems to eral departments of defense and en- effort called the OESA Automotive be going in the right direction,” We also offer a Good Any Day Program, where Supplier Technology Forum. ergy, said Gary Krause, director of said President Mark Schmidt. The forum will offer networking federal partnerships and initiatives Steven Melnyk, professor of op- employees can purchase a discounted ticket to use any and an information clearinghouse at the MEDC. erations management for the De- day all season long. Set this up online for free! for OESA members and others in- National laboratories are also partment of Marketing and Supply volved in developing and commer- working with Michigan manufac- Chain Management at Michigan cializing automotive technology. Its turers through a representative in State University’s Eli Broad School of Pick something everyone will love first meeting is set for June 22. MEDC’s Livonia office. Ray Boe- Business said the idea of an industri- and come to Cedar Point. “For an auto supplier looking to man of Oak Ridge National Laboratory al matchmaking service is poten- diversify into medical devices or acts as a liaison between Michigan tially interesting, but such a service wind energy, forums like ours and companies and the national lab net- would need to prequalify firms. others around the state play an in- work. “You can describe the capabili- valuable service to minimize the Oakland County’s Automation Al- ties of the firm — does it have the time and cost of building new rela- ley also has had requests for a capacity, the ability to do what it tionships,” said Dave Andrea, matchmaking service and is consid- says?” he said.
Sandusky, OH Go to cedarpoint.com/groups for details and pricing info or call 1-800-448-2428. 20100517-NEWS--0018-NAT-CCI-CD_-- 5/13/2010 3:43 PM Page 1
Page 18 CRAIN’S DETROIT BUSINESS May 17, 2010 Our Detroit office continues to grow Focus: The New Supply Chain We are pleased to announce that CASE STUDY: PROTOMATIC INC. three experienced attorneys have joined our Litigation team: Cash flow, versatility helped evolving machine shop through supplier squeeze Protomatic Inc. has been forced to times. The result, Wetzel said, was spread its machine shop wings that it had the cash to make it more than once. The same through the lean times while boost- The 1969 moon landing ended the “ ing its presence in newer industries. John E. Benko Michael G. Latiff Timothy J. Lowe rush of the space race and slowed equipment is used to Word-of-mouth referrals started demand for machining rocket parts to win more medical-equipment direct dial: 248.220.1352 direct dial: 248.220.1351 direct dial: 248.220.1359 [email protected] [email protected] [email protected] that had been a primary business manufacture business. By 2006, Protomatic’s au- for Protomatic’s parent company. tomotive business had been cut in Protomatic, founded in 1971, had automotive, half, to 30 percent. Medical equip- some small, early wins — electro- ment accounted for 41 percent of mechanical devices for pinball ma- aerospace or medical sales. This year, medical makes up chines and medical-imaging ma- parts. nearly 80 percent of Protomatic’s chines — but its big business came ” business. The rest is split among from prototyping parts for Ford Mo- Doug Wetzel, Protomatic Inc. smaller defense and aerospace cus- tor Co., said Doug Wetzel, Protomat- tomers. ic vice president and general man- “We use CNC type of milling and Protomatic last year had rev- ager and son of its founder, William. turning machines. But they’re uni- enue of about $3 million, Wetzel Attorneys on a Mission® The prototypes accounted for versal,” Wetzel said. “The same said, up about $1 million from 2006. Your mission is our mission. We never lose sight of it. more than 60 percent of the compa- equipment is used to manufacture A crash course at the nonprofit ny’s business when Ford told its automotive, aerospace or medical Michigan Manufacturing Technology suppliers in 2000 that it was cut- parts.” Center gave Protomatic greater fo- ting prototyping by 90 percent and And because Protomatic was cus on specific segments of the whittling down its supplier base. used to low-volume prototyping medical equipment industry. Or- A business advisory and advocacy law firm Protomatic started to look for runs, it could more easily switch thopedics is a growing specialty, new business, using lessons learned production to lower-volume indus- Wetzel said. Carl J. Grassi, President from its previous experience. tries such as medical equipment. “We had declined from 2001 to 39533 Woodward Avenue, Suite 318, Bloomfield Hills, MI 48304 The company invested in tech- The company hadn’t relied on 2006, and now we’re going back 248.646.5070 nology and equipment that did not credit to bulk up with equipment up,” he said. Stephen M. Gross, Detroit Managing Member favor a particular industry. and other purchases during boom — Michelle Martinez Chicago • Cleveland • Columbus • Detroit • West Palm Beach www.mcdonaldhopkins.com CASE STUDY: SALINE LECTRONICS INC. Training grants, MEDC help circuit board maker grow Shortly after Saline Lectronics pany’s current location. ployees. Saline Lectronics has Inc. started up in 2002, the industry “The banks weren’t interested about 104 employees; within two it relied upon the most — automo- in bricks and mortar. The Michigan years, it expects to have about 135, 800-292-3831 tive — began to pressure suppliers Economic Development Corp. stepped largely to service defense and med- to lower prices. in with their collateral support ical device customers. indiantrails.com “The margins got so thin that program and helped us obtain the Medical devices now represent there was no room,” said Saline facilities,” Sciberras said. “We nearly 40 percent of Saline Lectron- Lectronics President and CEO were the first ones to obtain it ics’ business, and controls are near- Mario Sciberras. through that program.” ly 24 percent, with the rest coming Automotive was 60 percent of the The company last August re- from a variety of other industries, Saline-based cir- ceived nearly $1 million through Sciberras said. Automotive is just cuit board manu- the state’s Michigan Supplier Di- 2 percent of its overall business. ONE HU G ND IN R T E facturer’s busi- versification Fund to double its Thermoelectric devices and bat- A D R Y B E ness. The size to 60,000 square feet. Since the tery development are new markets E A
L R
E S C 100 remaining deal closed in November, Saline the company is investigating. 40 percent went Lectronics has hired about 17 em- — Michelle Martinez to controls for things like ma- chine tools. Market re- search led Sciberras Sciberras to de- fense and medical devices as in- dustries that offered good opportu- coffee!! nities for growth. But each industry required quality certifi- opportunity!! cations to get a foot in the door. Saline Lectronics in 2004 re- ceived $45,000 worth of training interested?? grants from the state, Sciberras Comfort and said, which allowed the company to improve internal record-keeping franchise?? and train its employees. By 2006, he t$IBSUFST said, the company had received its Luxury ISO medical device certification t5PVST and its certification for aerospace. Contact us at “A number of companies in (517) 913-1987 or t4IVUUMFT (our) market required that certifi- 00 cation,” he said. “That was our [email protected] game plan.” $100 OFF t$POWFOUJPO4FSWJDFT SAVE But while the company began to expand into other industries, ex- t$PSQPSBUF&WFOUT panding its plant was more diffi- Contact Indian Trails for details. Must use this cult. A credit crunch made it hard www.biggby.com promotional code at time of booking: CDB52may t4DIFEVMFE4FSWJDF for Saline Lectronics to finance the purchase of more space in the com- 20100517-NEWS--0019-NAT-CCI-CD_-- 5/13/2010 3:41 PM Page 1
May 17, 2010 CRAIN’S DETROIT BUSINESS Page 19 Focus: The New Supply Chain CASE STUDY: PATTI ENGINEERING, LEID PRODUCTS L.L.C. 2010 INCREASES For ‘a bunch of electrical engineers,’ hard parts were sales and marketing Technical know-how can be ap- ucts L.L.C. to sell biometrically ness hours. Corporations, colleges % plied in more than one way. But controlled locker and cabinet stor- and universities, amusement marketing can be tricky. age. LEID serves three industries: parks and military facilities are Those are among the lessons law enforcement, library lockers other potential markets. learned by Auburn Hills-based Pat- and medical distribution. Hoff ex- “Both companies have Twitter ti Engineering and sister company pects $900,000 in 2010 sales, up feeds and blogs. Hoff’s blog for Patti LEID Products L.L.C. from $160,000 last year with two Engineering includes company 0 “We’re a bunch of electrical engi- employees. news, commentary on issues like neers, and we A retired police officer suggested Detroit’s revival, and his personal can make things the first LEID product to Hoff. Dur- passion, Detroit Tigers baseball. “We work,” said Sam ing his career, the policeman had have a marketing consultant that TUITION. ROOM. BOARD. Hoff, president of wanted a system using fingerprints we’re working with on the Facebook both companies. to check out rifles for police sta- pages. Both are working pretty “One of the tions, but nothing had been avail- well. Since LEID has a product, its struggles I’ve able. His efforts to develop a locking marketing is more important. Patti Affordable Education First had and one rifle rack on his own were incom- Engineering has a strong word-of- thing I’m learn- plete. LEID Products made it work. mouth reputation,” Hoff said. ing: Sales and “When we put it into our first LEID is doing its first federal pro- marketing are site, (the customer) immediately ject right now. It should be deliv- Hoff tough hurdles to said, ‘That’s really good for our ri- ered and installed by the end of May get over,” Hoff said. fles. Do you have something for at National Institutes of Health for the Patti Engineering was founded handguns, Tasers, to keep other agency’s police force, Hoff said. in 1991 as a system integrator in assets?’ We added the locker prod- LEID has a dedicated salesman who electrical controls and informa- uct,” Hoff said. made the deal. LEID manufacturing OUTGROWN tion systems. Its historically auto- LEID found success with library takes place in Tiffin, Ohio. motive customer base still ac- lockers as well, especially for rural Patti Engineering upgraded a 15- counts for 45 percent of business. libraries. A set of lockers from year-old control system on the Ten- YOUR LOOK? In the last five to seven years, which library patrons can retrieve nessee Valley Authority’s Wilson Patti Engineering has added high- their reserved books and materials Dam Spillway in Muscle Shoals, speed sorting and distribution sys- is far cheaper than a branch library Ala. The TVA had received esti- tems for customers such as DHL 10 miles from the main location. mates of as much as $15 million to and fashion retailers Men’s Wear- Biometric systems can be used replace the system. house and Forever 21. Hoff projects to track hospital scrubs and other Patti Engineering also works 2010 revenue of $5 million, up from surgical and medical supplies or to with other manufacturers, such as $3.7 million last year. The compa- distribute medicine and home- conveyor fabricators, to get busi- ny has 30 employees. infusion kits to patients and home ness. In 2005, Hoff created LEID Prod- health care staff outside of busi- — Constance Crump
CASE STUDY: J.C. GIBBONS MANUFACTURING INC. Supplier cracks the code to finding new business Thanks to unorthodox use of in- ment statistical tool), the company watering, eventually these pop,” he MARKETING • PR • DESIGN • NEW MEDIA dustry classification codes and a found and pitched potential cus- said. identitypr.com major overhaul of marketing tools tomers in growth industries with One new reality hasn’t changed: and techniques, Livonia’s J.C. Gib- the same codes as existing clients. Predicting work flow (and thus bons Manufacturing Inc. is courting That led to new business mak- revenue) is excruciating. new customers. ing parts for a local medical sup- “Everybody waits till the last Founded in 1959, it’s currently plier and a commercial sign mak- minute to order,” Gibbons said. managed by the third generation er. The company has also Tight time lines give J.C. Gibbons of the Gibbons expanded its reach into oil and hy- an advantage over offshore com- family. Jeff Gib- draulic pumps. Jeff Gibbons ex- petitors. bons is vice pects $2.5 million to $3 million in “(Competitors are) not going president. revenue this year. away, but I have fast turnaround “In the screw- “It is a step-by-step process. and great customer service. That’s machine indus- Nothing happens fast. It takes where we’ve seen growth opportu- Nationally Recognized Substance Abuse try, our product time. It takes effort to find indus- nities. We can be more responsive is more expen- tries and companies that are out- to that panicked call at 5 o’clock: Residential Treatment Center sive but has side the current product mix in ‘We need the parts tomorrow!’ I can help you to save a life today tighter toler- other growth industries,” he said. “You can’t go to China for that. ances,” Gibbons “We went from 75 percent direct You’re going to call your neighbor, said. “We make Gibbons automotive sales to 49 percent. We and that’s where we’re going to all special products, not found in a feel good about that — but we save them. A lot of times that will CHIEF EXECUTIVE OUTREACH catalog anywhere.” aren’t running away from automo- open the door for you,” he said. The company already has added Until recently, the company’s tive. We would welcome a return Just call me on my customer portfolio was weighted to- to that business.” parts customers in industries such personal cell phone (734)476-9931 ward the automotive industry. J.C. Gibbons hasn’t ventured to as oil, electrical, heavy truck and Three years ago, automotive orders trade shows in new markets, al- consumer goods, including fishing Denise Bertin-Epp waned. The company joined the though just about everything else equipment and hand tools. It’s ex- President and Chief Nursing Officer, Brighton Hospital market diversification program for about its marketing approach has ploring wind turbines and batter- I Highest physician recognition by the American Society of Addiction Medicine (ASAM) small businesses offered by the changed. Its e-mails go more wide- ies. I Masters prepared and experienced therapists Michigan Manufacturing Technology ly to potential customers. Phone The company is revamping its I Highest percentage of addiction certified nurses in the USA (CARN) I Integrative therapies, including auricular detox acupuncture and yoga Center. follow-up is a massive effort.Culti- web site, www.jcgibbons.com. I First choice for executives, health professionals and attorneys With ISO certification, high- vating new customers is like any Gibbons said his dad, Jerry, will quality production, current tech- other gardening, he said. always have the president’s title, www.brightonhospital.org nology and up-to-date machinery, “Companies that are in the initial although he’s now retired. Jeff’s 800-523-8198 J.C. Gibbons had excellent basics. stages of opportunity — that’s real- brother, Dan, also works at the With MMTC’s help and using ly about planting seeds. They won’t screw-machine company started Confidential • Patient/family support • Intervention liaison • Evaluation North American Industry Classifi- need harvesting for maybe six by their grandfather, John. Admission • Advocacy/counsel • Referrals • Concierge services cation System codes (a govern- months or more. With feeding and — Constance Crump SP1563 20100517-NEWS--0020-NAT-CCI-CD_-- 5/13/2010 3:57 PM Page 1
Page 20 CRAIN’S DETROIT BUSINESS May 17, 2010
CRAIN'S LIST: PRIVATE 200 Ranked by 2009 revenue
Full-time local Worldwide Company Revenue 2009 Revenue 2008 employees employees Rank Phone; Web site Top executive ($000,000) ($000,000) Percent change Jan. 2010 Jan. 2010 Type of business General Motors Co. Ed Whitacre Jr. $57,474.0 B $148,979.0 -61.4% NA 215,000 Automobile manufacturer 1. (313) 556-5000; www.gm.com chairman and CEO Chrysler Group L.L.C. Sergio Marchionne 17,710.0 C 47,600.0 C -62.8 NA 47,470 Automobile manufacturer 2. (248) 576-5741; www.chryslerllc.com CEO Penske Corp. Roger Penske 16,000.0 19,020.0 -15.9 NA 33,660 Retail automotive, truck leasing and logistics, transportation 3. (248) 648-2000; www.penske.com chairman and CEO components, motorsports racing Guardian Industries Corp. Russell Ebeid 4,950.0 D 5,400.0 D -8.3 NA NA Manufacturer of glass, automotive and building products (248) 340-1800; www.guardian.com chairman of the board, 4. president, Guardian Glass Group Delphi Automotive L.L.P. Rodney O'Neal 3,400.0 E 18,060.0 -81.2 NA 100,000 Manufacturer of mobile electronics and entertainment systems 5. (248) 813-2000; www.delphi.com president and CEO IAC Group James Kamsickas 3,200.0 2,400.0 33.3 825 23,000 Global tier-one supplier of vehicle interior systems and 6. (313) 240-3000; www.iacgroup.com president and CEO components Ilitch companies F Christopher Ilitch 2,100.0 2,000.0 5.0 2,430 18,000 Little Caesar Enterprises, Detroit Red Wings, Blue Line (313) 983-6600; www.ilitchcompanies.com president and CEO, Ilitch Foodservice Distribution, Champion Foods, Olympia Holdings Inc. Entertainment, Uptown Entertainment, Olympia Development, 7. Little Caesars Pizza Kit Fundraising Program and Ilitch Holdings. Michael Ilitch owns the Detroit Tigers. Marian Ilitch owns MotorCity Casino Hotel. Cooper-Standard Automotive James McElya 1,945.3 2,594.6 -25.0 460 16,334 Fluid-handling systems, noise- and vibration-control products, 8. (248) 596-5900; www.cooperstandard.com chairman and CEO body-sealing systems TI Automotive Ltd. Bill Kozyra 1,800.0 2,500.0 G -28.0 420 14,586 Fuel systems; brake and fuel lines; heating, ventilation and air- 9. (586) 758-4511; www.tiautomotive.com chairman of the board, conditioning systems president and CEO Affinia Group Inc. Terry McCormack 1,800.0 2,178.0 -17.4 53 10,000 Automotive and industrial aftermarket parts 9. (734) 827-5400; www.affiniagroup.com president and CEO Plastipak Holdings Inc. William Young 1,778.7 1,924.7 -7.6 500 4,900 Manufacturer of rigid plastic containers for the consumer 11. (734) 455-3600; www.plastipak.com president and CEO products industry Priority Health Mike Koziara 1,626.9 1,427.8 13.9 121 916 Award-winning health benefits company that consistently ranks 12. (800) 852-9780; priorityhealth.com vice president, provider among the nation’s best network and eastern region Soave Enterprises L.L.C. Anthony Soave 1,250.0 2,214.0 -43.5 580 1,700 Diversified management holding company, specializing in scrap 13. (313) 567-7000; www.soave.com president and CEO metal recycling, real estate, beverage distribution and auto retailing, among others. Barton Malow Co. Lester Snyder III 1,246.9 1,653.1 -24.6 467 1,334 Construction services 14. (248) 436-5000; www.bartonmalow.com president Sherwood Food Distributors Earl Ishbia 1,222.8 1,269.9 -3.7 300 815 Wholesale food distributor 15. (313) 659-7300; www.sherwoodfoods.com co-chairman, president and CEO Moroun family holdings H 1,140.0 D 1,140.0 D 0.0 NA NA Ambassador Bridge and various trucking and logistics companies 16. (586) 939-7000 Atlas Oil Co. Sam Simon 1,081.2 1,150.0 -6.0 NA 411 Petroleum distribution, total fuel needs 17. (800) 878-2000; www.atlasoil.com chairman and CEO Acument Global Technologies Inc. Rick Dauch 1,060.0 1,620.0 -34.6 500 4,900 Engineered mechanical fastening products, manages provider 18. (248) 813-6300; www.acument.com president and CEO programs for fastener supply MAG Industrial Automation Systems Dan Janka 1,006.0 1,654.0 -39.2 NA NA Machine tool and systems companies 19. (586) 566-2400; www.mag-ias.com president MAG Global Walbridge Aldinger Co. John Rakolta Jr. 961.9 1,325.0 -27.4 410 1,050 Construction 20. (313) 963-8000; www.walbridge.com chairman and CEO Belfor Holdings Inc. Sheldon Yellen 948.2 976.7 -2.9 1,077 4,335 Insurance repair and reconstruction, environmental cleanup, 21. (248) 594-1144; www.belfor.com CEO residential, commercial and industrial The Suburban Collection David Fischer 934.3 1,182.9 -21.0 1,149 1,310 Automobile dealerships 22. (877) 471-7100; www.suburbancollection.com president and CEO Bridgewater Interiors L.L.C. Ronald Hall 915.0 1,186.0 -22.8 957 NA Automotive interiors 23. (313) 842-3300 president and CEO Quicken Loans/Rock Financial Inc. Dan Gilbert 875.0 I 474.0 84.6 NA NA Mortgage banking 24. (800) 226-6308; www.quickenloans.com and chairman and founder www.rockfinancial.com H.W. Kaufman Financial Group/ Alan Kaufman 850.0 875.0 -2.9 200 800 Specialty insurance, reinsurance and premium financing 25. Burns & Wilcox chairman, president and CEO (248) 932-9000; www.burnsandwilcox.com Wolverine Packing Co. Jim Bonahoom 820.0 894.2 -8.3 375 NA Wholesale meat packer and processor; wholesale meat, poultry 26. (313) 259-7500; www.wolverinepacking.com president and seafood distributor RGIS L.L.C. Paul Street 700.0 D 686.0 D 2.0 NA NA Inventory services 27. (248) 651-2511; www.rgis.com CEO Health Plan of Michigan Inc. David Cotton 660.3 423.9 55.8 205 205 Health maintenance organization 28. (313) 324-3700; www.hpmich.com president and CEO Key Safety Systems Inc. Jason Luo 615.0 D 1,000.0 G -38.5 NA NA Airbags, steering wheels, seatbelts and electronics 29. (586) 726-3800; www.keysafetyinc.com president and CEO TAG Holdings L.L.C. Joseph Anderson Jr. 533.0 753.0 -29.2 6 NA Module and component manufacturing for various industries, 30. (248) 822-8056; www.taghold.com chairman and CEO including automotive, sports and recreation vehicle, consumer products Amerisure Mutual Insurance Co. Richard Russell 530.9 623.5 -14.9 354 712 Property and casualty insurance 31. (248) 615-9000; www.amerisure.com president and CEO
B General Motors Co. posted $57.474 billion in revenue during the period beginning when it emerged from Chapter 11 bankruptcy on July 10 through the end of 2009. Its predecessor, Motors Liquidation Co. or the "old" GM, posted revenue of $47.115 million from Jan. 1, 2009, through July 9. C Chrysler Group L.L.C. posted $17.7 billion in revenue from its June 10 exit from Chapter 11 bankruptcy through Dec. 31, 2009. Revenue generated before emerging from Chapter 11 is attributed to Chrysler L.L.C., owned by Cerberus Capital Management L.P. 2008 figure is unaudited net revenue from the predecessor Chrysler L.L.C., owned by Cerberus Capital Management L.P. D Crain's estimate. E Delphi Automotive L.L.P. posted $3.4 billion in revenue between Aug. 19 and Dec. 31, 2009. The new company emerged from Chapter 11 bankruptcy in October. The "old" Delphi, now known as DPH Holdings, generated revenue of $8.3 billion from Jan. 1, 2009 through Oct. 6. F There is not a holding company for the Ilitch family of businesses. Some are owned individually by Michael and Marian Ilitch, others are owned jointly. G From Automotive News. H There is not a holding company for the Moroun family businesses. Some are public companies controlled by Manuel and/or Matthew Moroun. Others are owned privately by the Moroun family. I Crain's estimate. Quicken Loans originated $25 billion in loans in 2009. Revenue estimate is based on 3.5 percent of loan volume. Continued on Page 22 DBpageAD.qxd 5/5/2010 10:53 AM Page 1
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* Results may vary depending on your business situation. 20100517-NEWS--0022-NAT-CCI-CD_-- 5/13/2010 4:40 PM Page 1
Page 22 CRAIN’S DETROIT BUSINESS May 17, 2010
CRAIN'S LIST: PRIVATE 200 Ranked by 2009 revenue Continued from Page 20 Full-time local Worldwide Company Revenue 2009 Revenue 2008 employees employees Rank Phone; Web site Top executive ($000,000) ($000,000) Percent change Jan. 2010 Jan. 2010 Type of business 32. Barrick Enterprises Inc. Robert Barrick $515.1 $591.8 -13.0% 35 35 Petroleum retailer and wholesaler (248) 549-3737 president 33. Kenwal Steel Corp. Kenneth Eisenberg 512.8 844.3 -39.3 206 324 Steel service center (313) 739-1046; www.kenwal.com chairman and CEO 34. Grede Holdings L.L.C. B Douglas Grimm 510.0 400.0 C 27.5 NA NA Metal components supplier (248) 522-4500; www.citation.net CEO 35. HoMedics Inc. Roman Ferber 500.0 D NA NA NA 700 Personal wellness products (248) 863-3000; www.homedics.com president George P. Johnson Co. Laurence Vallee, president 478.9 709.4 -32.5 282 965 Experiential marketing agency 36. (248) 475-2500; www.gpj.com David Drews, CFO and executive vice president 37. Orleans International Inc. Earl Tushman 478.0 475.0 0.6 32 37 Meat importer (248) 855-5556; www.orleansintl.com president 38. ABC Appliance Inc. Gordon Hartunian 475.0 450.0 D 5.6 917 1,751 Appliances, electronics and car audio (248) 335-4222; www.abcwarehouse.com chairman 39. Carhartt Inc. Mark Valade 460.0 530.0 -13.2 240 3,750 Apparel manufacturer (313) 271-8460; www.carhartt.com CEO and president 40. The Harvard Drug Group L.L.C. Randolph Friedman 457.9 460.4 -0.5 245 419 Pharmaceutical distributor, wholesaler and manufacturer, (734) 743-6000; www.theharvarddruggroup.com chairman and CEO compounding, vet supply, etc. 41. Henniges Automotive Robert DePierre 420.0 772.0 E -45.6 151 4,073 Weather-strip seals, glass encapsulation, modular sealing systems (248) 553-5300; www.hennigesautomotive.com chairman, president and CEO and anti-vibration components 42. RKA Petroleum Cos. Inc. Kay Albertie 406.7 662.2 -38.6 88 109 Wholesale distributor of gasoline, diesel fuel, ethanol, biodiesel, (734) 946-2199; www.rkapetroleum.com CEO Jet A and Jet A1 products 43. Barden Cos. Inc. Don Barden 405.0 455.0 -11.0 10 3,350 Gaming, residential and commercial real estate development and (313) 496-2900 chairman, president and CEO entertainment 44. Trico Products Corp. James Finley 396.0 D 396.0 F 0.0 NA NA Aftermarket and OEM windshield wiper blades and systems (248) 371-1700; www.tricoproducts.com president and CEO 45. Lipari Foods Inc. Thom Lipari 393.0 393.0 0.0 335 601 Wholesale food distribution (586) 447-3500; liparifoods.com president and CEO 46. McNaughton-McKay Electric Co. Donald Slominski Jr. 390.0 508.0 -23.2 240 655 Electric/electronics distributor (248) 399-7500; www.mc-mc.com president and CEO 47. Letica Corp. Anton Letica 388.0 G 388.0 G 0.0 NA NA Plastic and paper packaging manufacturer (248) 652-0557; www.letica.com president Art Van Furniture Archie Van Elslander, 385.0 440.0 -12.5 1,050 1,725 Retail home furnishings 48. (586) 939-0800; www.artvan.com chairman Kim Yost, CEO 49. Prestige Automotive Gregory Jackson 371.2 646.2 -42.6 NA NA Automobile dealerships, real estate and insurance (586) 773-2369; www.prestigeautomotive.com chairman, president and CEO 50. Key Plastics L.L.C. Terry Gohl 365.0 473.0 -22.8 70 3,350 Injection-molded components and assemblies (248) 449-6100; www.keyplastics.com CEO 51. R.L. Polk & Co. Stephen Polk 350.0 352.0 -0.6 471 1,440 Automotive industry information (248) 728-7000; www.polk.com chairman, president and CEO 51. The Diez Group Gerald Diez 350.0 525.0 -33.3 240 NA Holding group for steel-service and stamping companies (313) 491-1200; www.thediezgroup.com chairman and CEO 53. PVS Chemicals Inc. James Nicholson 334.7 417.1 -19.8 NA NA Manufacturer, marketer and distributor of industrial chemicals (313) 921-1200; www.pvschemicals.com president and CEO 54. EP Management Corp. H David Treadwell 328.0 479.0 -31.5 60 2,000 Products for the automotive, defense, aerospace, (313) 749-5500; www.epcorp.com president, CEO and COO telecommunications and other arenas 55. MSX International Inc. Frederick Minturn 304.0 382.5 -20.5 NA NA Warranty, retail and business outsourcing services, specialized (248) 829-6300; www.msxi.com president and CEO staffing, engineering 56. Plante & Moran P.L.L.C. Gordon Krater 301.2 291.9 3.2 840 1,480 Accounting firm (248) 352-2500; www.plantemoran.com managing partner 57. Allegra Network L.L.C. Carl Gerhardt 300.0 353.0 -15.0 45 67 Marketing, print and graphic communications franchisor (248) 596-8600; www.allegranetwork.com president and CEO 58. Elder Automotive Group Irma Elder 296.7 500.1 -40.7 408 NA Automotive dealerships (248) 585-4000; www.elderautomotivegroup.com CEO 59. Michigan Cat Jerrold Jung 275.0 425.0 -35.3 NA NA Heavy construction equipment and engine sales, parts, rental and (248) 349-4800; www.michigancat.com CEO service LaFontaine Automotive Group Michael LaFontaine and 273.5 264.6 3.3 386 NA Automobile dealerships 60. (313) 561-6600; www.thefamilydeal.com Maureen LaFontaine owners Prestolite Electric Holding Inc. Joe LeFave, CEO 260.0 320.0 -18.8 40 2,450 Manufactures starter motors and alternators (734) 582-7200; www.prestolite.com Benson Woo, CFO 61. Dennis Chelminski, vice president and controller 62. Talascend L.L.C. I Ron Wood 256.0 202.0 26.7 268 1,322 Engineering resources (248) 537-1300; www.talascend.com president and CEO McKinley Inc. Albert Berriz 254.0 237.2 7.1 450 1,200 Real estate investment, property management, receiverships and 63. (734) 769-8520; www.mckinley.com CEO workouts, asset management, leasing and brokerage, value creation and dispositions 64. Lakeshore Engineering Services Avinash Rachmale 250.0 C 150.0 66.7 NA NA Engineering (313) 875-4115; www.lakeshoreeng.com president and CEO 65. Piston Group Vincent Johnson 247.8 162.3 52.7 120 163 Automotive supplier (313) 541-8546; www.pistongroup.com chairman 66. EQ-The Environmental Quality Co. David Lusk 240.0 240.0 0.0 356 702 Environmental management services (734) 329-8000; www.eqonline.com president and CEO
B Citation was renamed Grede Holdings L.L.C. in February 2009 after a series of private equity-financed deals that combined Citation with Grede Foundries Inc., a Milwaukee-based ferrous metals foundry. C Company estimate. D Crain's estimate. E From Automotive News. F Figure from the Automotive Aftermarket Suppliers Association Top 100 list. G Plastics News estimate. H EaglePicher Corp. was renamed EP Management Corp. in February 2010. I Modern Professional Services acquired Alabama-based Quality Technical Services L.L.C. in July 2008 and U.K.-based Talascend Group in October 2008. It changed its name to Talascend L.L.C. June 1, 2009. Continued on Page 24 DBpageAD.qxd 5/6/2010 12:31 PM Page 1
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Page 24 CRAIN’S DETROIT BUSINESS May 17, 2010
CRAIN'S LIST: PRIVATE 200 Ranked by 2009 revenue
Continued from Page 22 Full-time local Worldwide Company Revenue 2009 Revenue 2008 employees employees Rank Phone; Web site Top executive ($000,000) ($000,000) Percent change Jan. 2010 Jan. 2010 Type of business 67. Belle Tire Distributors Inc. Don Barnes Jr. $225.0 B $248.0 -9.3% NA NA Retailer of tires and automotive services (313) 271-9400; www.belletire.com president 67. Camaco L.L.C. Arvind Pradhan 225.0 225.0 0.0 23 623 Manufacturer of stamped metal and wire frame seat assemblies, (248) 442-6800; www.camacollc.com president and CEO headrests and other products 69. Global Automotive Alliance L.L.C. William Pickard 222.0 261.3 -15.0 350 NA Automotive supplier (313) 842-3009 chairman and CEO Tamaroff Automotive Group Marvin Tamaroff, chairman 215.9 342.6 -37.0 220 0 Automotive dealerships (248) 353-1300; www.tamaroff.com emeritus 70. Jeffrey Tamaroff, CEO and chairman 71. John E. Green Co. Peter Green 210.0 260.0 -19.2 NA NA Mechanical and fire protection contractor (313) 868-2400; www.johnegreen.com president and CEO 72. Detroit Lions Inc. William Clay Ford Sr. 208.0 B 208.0 C 0.0 NA NA National Football League franchise (313) 216-4000; www.detroitlions.com chairman and owner 73. Williams International Co. L.L.C. Gregg Williams 200.0 335.0 B -40.3 321 728 Designs, develops, manufactures and services small gas-turbine (248) 624-5200; www.williams-int.com chairman, CEO and president engines for business jets, missiles and power generation 74. United Road Services Inc. Michael Wysocki 198.0 247.4 -20.0 263 989 Vehicle logistics for vehicle manufacturers, remarketers, auctions, (734) 947-7900; unitedroad.com CEO dealers and internet vehicle transactions on a national basis 75. Crain Communications Inc. Keith Crain 196.5 279.0 -29.6 275 850 Publisher of business, trade and consumer publications and (313) 446-6000; www.crain.com chairman related websites Integrated Manufacturing Jim Comer 195.0 B 280.0 D -30.4 NA NA Automotive supplier 76. and Assembly L.L.C. president and CEO (248) 233-0860; www.comerholdings.com 77. Fisher & Co. Inc. Alfred Fisher III 190.0 B 222.0 -14.4 NA NA Automotive seating components (586) 746-2000; www.fisherco.com chairman and CEO 78. Stewart Management Group Inc. Gordon Stewart 189.5 228.5 -17.1 79 368 Automobile dealerships (313) 432-6200; www.gordonchevrolet.com president 79. The Bartech Group Inc. Jon Barfield 185.0 235.0 -21.3 1,073 2,256 Human capital and staffing services (734) 953-5050; www.bartechgroup.com president 80. NYX Inc. Chain Sandhu 180.0 232.0 -22.4 1,100 NA Automotive interiors and under-hood plastic moldings (734) 462-2385; www.nyxinc.com CEO 81. Dykema Gossett P.L.L.C. Rex Schlaybaugh 175.8 169.8 3.5 377 727 Law firm (313) 568-6800; www.dykema.com CEO and chairman 82. JAC Products Inc. Steve Morrey 173.0 300.0 -42.3 NA NA Automotive supplier of functional exterior trim (248) 874-1800; www.jacproducts.com president and CEO 83. SET Enterprises Sid Taylor 171.0 185.0 -7.6 140 250 Steel processing and sales (586) 573-3600; www.setenterprises.com chairman and CEO Strategic Staffing Solutions Inc. Cynthia Pasky 169.0 160.0 5.6 250 1,821 Provides consulting and staff augmentation services, vendor (313) 596-6900; www.strategicstaff.com president and CEO management programs, executive search services, call center 84. technology and an IT development center to financial institutions, energy companies, telecommunications, government agencies, retail and health care industries. SmithGroup Inc. Jeffrey Hausman, Detroit office 166.3 166.0 0.2 137 776 Architecture, engineering, interiors and planning (313) 983-3600; www.smithgroup.com director 85. Carl Roehling, president and CEO Roush Enterprises E Evan Lyall 161.5 241.0 -33.0 1,326 1,326 Engineering, product development, and manufacturing for the 86. (800) 215-9658; www.roush.com president and CEO automotive, consumer product, medical device, and theme park industries 87. Prestolite Wire L.L.C. Greg Ulewicz 157.0 B 206.0 B -23.8 NA NA Maker of ignition wire sets, battery cables, harnesses, automotive (248) 355-4422; www.prestolitewire.com president and CEO wire, other cables 87. Hiller Inc. James Hiller, CEO 157.0 180.0 -12.8 NA NA Grocer (248) 355-2122; www.hillers.com Justin Hiller, vice president 89. CareTech Solutions Inc. James Giordano 153.3 139.2 10.1 677 837 Information-technology and web products and services provider (248) 823-0800; www.caretech.com president and CEO for U.S. hospitals and health care systems General RV Center Robert Baidas, CEO 150.0 150.0 0.0 250 300 Recreational vehicle and trailer dealership 90. (248) 349-0900; www.generalrv.com Loren Baidas, president and chairman 90. Contractors Steel Co. Donald Simon 150.0 310.0 -51.6 134 257 Steel service center (734) 464-4000; www.contractorssteel.com president and CEO 92. Miller, Canfield, Paddock and Stone P.L.C. Michael Hartmann 143.0 146.1 -2.1 427 706 Law firm (313) 963-6420; www.millercanfield.com CEO W.B. Doner & Co. David DeMuth, co-CEO, 142.0 169.0 F -16.0 NA 771 Advertising agency (248) 354-9700; www.donerus.com president Rob Strasberg, co-CEO, chief 93. creative officer Tim Blett, president, senior partner, Newport Beach
94. Saturn Electronics & Engineering Inc. Wallace Tsuha Jr. 141.6 151.0 -6.2 114 NA Electronics, fuel components, solenoids, and wiring systems and (248) 853-5724; www.saturnee.com chairman and CEO components 95. Roncelli Inc. Gary Roncelli 139.0 182.0 -23.6 161 NA Construction services, program management, construction (586) 264-2060; www.roncelli-inc.com chairman and CEO management, design and build Altair Engineering Inc. James Scapa 139.0 152.0 -8.6 435 1,352 A global software and technology company focused on 95. (248) 614-2400; www.altair.com chairman and CEO engineering simulation, advanced computing, enterprise analytics and product development 97. Commercial Contracting Group William Pettibone 135.0 245.0 -44.9 114 NA General contractor, machinery installer (248) 209-0500; www.cccnetwork.com chairman 97. EWI Worldwide Dominic Silvio 135.0 179.0 -24.6 NA 225 A global live communications company that helps build (734) 525-9010; www.ewiworldwide.com founder, chairman and CEO community between brands and its customers Jim Riehl's Friendly James Riehl Jr. 134.0 183.6 -27.0 185 NA Automobile dealership 99. Automotive Group Inc. president and CEO (586) 979-8700; www.jimriehl.com 100. Wright & Filippis Inc. Anthony Filippis 133.0 136.0 -2.2 748 915 Provider of home medical equipment, respiratory, and prosthetic (248) 829-8200; www.firsttoserve.com president and CEO and orthotic services
B Crain's estimate. C From Forbes. D Company estimate. E Roush Fenway, an alliance between Roush Racing and the Fenway Sports Group, was formed in early 2007. Figures do not include the motorsports employee counts or revenue. F From Ad Age. Continued on Page 26 DBpageAD.qxd 4/12/2010 9:39 AM Page 1 20100517-NEWS--0026-NAT-CCI-CD_-- 5/14/2010 10:04 AM Page 1
Page 26 CRAIN’S DETROIT BUSINESS May 17, 2010
CRAIN'S LIST: PRIVATE 200 Ranked by 2009 revenue Continued from Page 24 Full-time local Worldwide Company Revenue 2009 Revenue 2008 employees employees Rank Phone; Web site Top executive ($000,000) ($000,000) Percent change Jan. 2010 Jan. 2010 Type of business US Farathane Corp. Andrew Greenlee $128.0 $125.0 2.4% 273 273 Plastic injection molder, extruder, thermal compression molder 101. (586) 978-2800; www.usfarathane.com president and CEO
Cold Heading Co. Derek Stevens 128.0 155.0 -17.4 145 NA Automotive supplier 101. (586) 497-7000; www.coldheading.com CEO
Aco Inc. Snyder Dick 125.4 128.0 -2.1 443 795 Retail hardware store chain 103. (248) 471-0100; www.acohardware.com president
GlobalHue Donald Coleman 125.1 B 123.8 B 1.1 NA NA Advertising and marketing 104. (248) 223-8900; www.globalhue.com chairman and CEO
Inland Pipe Rehabilitation Joe Cutillo 125.0 110.0 13.6 140 440 Underground construction and rehabilitation; green underground 105. (313) 899-3014; inlandpiperehab.com president and CEO solutions provider
U.S. Manufacturing Corp. Brian Simon 123.0 144.0 -14.6 NA NA Manufacturer of rear axle housings for light-duty trucks 106. (586) 467-1600; www.usmfg.com president and CEO
Macomb Pipe & Supply Co. Inc. Keith Schatko, vice president 120.0 165.0 -27.3 160 230 Distributor of pipe, valves, fittings, heating and cooling, control (586) 274-4100; www.macombgroup.com William McGivern Jr., CEO and instrumentation, boilers, pumps repair, steam products, 107. sanitary piping products, hose assemblies, fire protection and AWWA products Phillips Service Industries Inc. William Phillips 114.0 115.0 -0.9 440 NA Defense systems, homeland security, aircraft components, 108. (734) 853-5000; www.psi-online.com chairman welding machines, rugged electronics, wireless networks, automated assembly systems, repair services Briarwood Ford Inc. Eddie Hall Jr. 111.4 122.6 -9.2 156 NA Automobile dealership 109. (734) 429-5478; www.briarwoodford.com president
HTC Global Services Inc. Madhava Reddy 111.0 85.0 30.6 260 NA Application development and maintenance, business process 110. (248) 786-2500; www.htcinc.com president and CEO management, document and content management, and PMO services Bill Perkins Automotive Group Bill Perkins 105.5 111.2 -5.1 150 NA Automobile dealerships 111. (586) 775-8300; merollischevycars.com president
George W. Auch Co. Vincent DeLeonardis 104.1 148.2 -29.8 80 NA General contractor and construction manager 112. (248) 334-2000; www.auchconstruction.com president
Aristeo Construction Co. Joseph Aristeo 103.0 186.0 -44.6 240 NA Construction manager, general contractor, design-build, facilities 113. (734) 427-9111; www.aristeo.com president management contractor
Dantom Systems Inc. Timothy Schriner 103.0 72.0 43.1 115 NA Document processing, collection letter services 113. (248) 567-7300; www.dantomsystems.com CEO and president
Intraco Corp. Nicola Antakli 102.6 114.5 -10.4 36 270 Export management and international marketing 115. (248) 585-6900; www.intracousa.com chairman and CEO
Acro Service Corp. Ron Shahani 102.0 105.0 -2.9 850 3,100 Staff augmentation (IT, engineering, office support), outsourcing 116. (734) 591-1100; www.acrocorp.com president, chairman and CEO and IT and engineering consulting
VisionIT David Segura, CEO 101.0 102.0 -1.0 485 NA IT managed services, staffing and vendor management 117. (877) 768-7222; www.visionit.com Christine Rice, president
Vesco Oil Corp. Donald Epstein 100.8 119.2 -15.4 116 173 Distributor of auto and industrial lubricants and chemicals, auto 118. (248) 557-1600; www.vesco-oil.com president and CEO aftermarket products
Budco Perry Miele 100.0 C 100.0 C 0.0 NA NA Marketing, communication, warehouse, fulfillment, distribution 119. (313) 957-5100; www.budco.com chairman
DeMaria Building Co. Inc. Richard DeMaria, CEO 91.3 108.6 -15.9 148 151 General contracting, design and build, construction management 120. (313) 870-2800; www.demariabuild.com Joseph DeMaria Jr., president
Fori Automoation Mike Beck, vice president of 91.0 90.0 1.1 165 325 Industrial automation equipment (586) 247-2336; www.foriauto.com operations 121. Paul Meloche, vice president of sales Milosch's Palace Donald Milosch 91.0 90.0 1.1 133 NA Automobile dealership 121. Chrysler-Jeep-Dodge Inc. president (248) 393-2222; www.palacecj.com W Industries Ed Walker 90.0 NA NA 400 NA Manufactured metal products 123. (313) 372-4131; www.w-industries.net CEO
The Ideal Group Inc. Frank Venegas Jr. 89.8 164.0 -45.2 178 83 General contractor, handrail, guardrail and bumper post sleeve 124. (313) 849-0000; www.weareideal.com chairman and CEO manufacturer, indirect material management
Impact Steel Group Mike Easlick, CEO 89.3 128.9 -30.7 16 21 Flat-rolled steel distributor (248) 414-6100; impactsteel.com Jeff Jaye, president 125. Rob Feldman, CFO Darryl Waugh, chairman Avis Ford Inc. Walter Douglas Sr. 86.5 74.7 15.9 NA NA Automobile dealership 126. (248) 355-7500; www.avisford.com chairman and CEO
Village Ford Inc. James Seavitt 86.0 78.2 C 10.0 142 NA Automotive dealership 127. (313) 565-3900; www.villageford.com president and CEO
Chase Plastic Services Inc. Kevin Chase 85.0 95.0 -10.5 29 57 Specialty engineering thermoplastics distributor 128. (248) 620-2120; www.chaseplastics.com president
Gonzalez Design Group Gary Gonzalez 85.0 68.0 25.0 420 NA Design engineering, staffing, manufacturing technologies, 128. (248) 548-6010; www.gonzalez-group.com president and CEO production systems, other
Tom Holzer Ford Inc. Constance Holzer 84.7 71.4 18.6 99 NA Automobile dealership 130. (248) 474-1234; www.holzerford.com president and CEO
Urban Science Inc. James Anderson 84.5 82.6 2.3 230 NA Global retail marketing consulting firm 131. (313) 259-9900; www.urbanscience.com president and CEO
Van Pelt Corp. Roger VanPelt 82.5 85.0 -2.9 130 275 Steel distributor 132. (313) 365-3600; www.servicesteel.com CEO and president
Varilease Technology Finance Group Robert VanHellemont 81.3 88.8 -8.4 14 70 Lease and loan equipment financing 133. (248) 366-5300; www.varilease.com president
B GlobalHue provided billings of $833.7 million for 2009 and $825 million for 2008. Revenue is an estimate based on 15 percent of billings. C Crain's estimate. Continued on Page 27 20100517-NEWS--0027-NAT-CCI-CD_-- 5/14/2010 10:03 AM Page 1
May 17, 2010 CRAIN’S DETROIT BUSINESS Page 27
CRAIN'S LIST: PRIVATE 200 Ranked by 2009 revenue Continued on Page 26 Full-time local Worldwide Company Revenue 2009 Revenue 2008 employees employees Rank Phone; Web site Top executive ($000,000) ($000,000) Percent change Jan. 2010 Jan. 2010 Type of business Synergy Group Inc. Ennio "Pete" Petrella $81.2 $140.0 -42.0% 24 NA Design and build, general contractor, construction management 134. (248) 740-7400; www.synergygroup.biz principal Market Strategies Inc. Andrew Morrison 80.1 92.2 -13.1 NA NA Custom and syndicated market research and consulting firm 135. (734) 542-7600; www.marketstrategies.com chairman and CEO Rush Trucking Corp. Andra Rush 80.0 90.0 -11.1 198 907 Motor carrier, logistics management 136. (734) 641-1700; www.rushtrucking.com president KC Integrated Services L.L.C. Kenyon Calender 79.0 79.0 0.0 330 NA Logistics, freight management, warehousing, parts sequencing, 137. (800) 476-6317; www.kcintegrated.com CEO subassembly, and more Diversified Computer Supplies Inc. Joseph Hollenshead 78.5 78.0 0.6 35 48 Distributor of imaging/printer supplies 138. (800) 766-5400; www.dcsbiz.com chairman, president and CEO Ghafari Inc. Yousif Ghafari 75.0 130.0 -42.3 498 686 Architectural engineering, manufacturing engineering, consulting, 139. (313) 441-3000; www.ghafari.com chairman and founder professional staffing Edwards Bros. Inc. John Edwards 75.0 77.0 -2.6 400 700 Manufacturer of books and journals 139. (734) 769-1000; www.edwardsbrothers.com president and CEO Active Aero Group-USA Jet Airlines Chris Healy, president and 73.0 158.0 -53.8 198 258 Air freight and ground expediting, private and public charters 141. (734) 547-7200; www.activeaero.com; CEO www.usajetairlines.com Brian Hermelin, chairman VPSI Inc. Jeff Henning 71.0 61.0 16.4 50 170 Employee transportation, commuter vanpooling 142. (248) 597-3500; www.vpsiinc.com president and CEO Continental Plastics Co. Joan Luckino 70.0 109.0 -35.8 504 584 Supplier of injection-molded interior and exterior auto parts. Cut 143. (586) 294-4600; www.contplastics.com CEO and sewn cloth and leather products Synova Inc. Tim Manney 65.5 92.0 -28.8 652 NA Information-technology services 144. (248) 281-2500; www.synovainc.com president T.H. Marsh Construction Co. Ryan Marsh 65.0 52.0 25.0 40 NA Construction 145. (248) 586-4130; www.thmarsh.com president, CEO and COO TNG Worldwide Larry Gaynor 64.0 71.0 -9.9 20 220 Manufacturer, importer, distributor and educator of products for 146. (248) 347-7700; www.tngworldwide.com president and CEO the spa and tanning markets Ram Construction Services Robert Mazur 63.0 53.0 18.9 300 450 Waterproofing, damp proofing, caulking, building restoration and 147. (734) 464-3800; www.ramservices.com president concrete restoration, deck coating Peterson American Corp. Dan Sceli 62.7 90.0 -30.3 108 504 Manufacturer of mechanical springs, rings and stampings 148. (248) 799-5400; www.pspring.com CEO Ansara Restaurant Group Inc. Victor Ansara 61.7 69.4 -11.2 1,850 2,550 Restaurant 149. (248) 848-9099 president Zatkoff Seals & Packings Gary Zatkoff 61.4 80.6 -23.8 NA 150 Distributor of seals and packings; manufacturer of gaskets 150. (248) 478-2400; www.zatkoff.com president and CEO Corrosion Fluid Products Corp. Joseph Andronaco 61.2 81.3 -24.7 30 122 Industrial distribution of process pumps, automated valves, (248) 478-0100; www.corrosionfluid.com CEO chemical piping systems, hoses and pump repair, service sanitary 151. and high purity markets covering seven states with eight stocking branches. Markets include steel, energy, chemical, pharmaceutical and auto. Navigating Business Space Inc. Richard Schwabauer 61.0 71.0 -14.1 125 NA Furniture dealership 152. (248) 823-5400; www.navbus.com owner and president Loc Performance Products Victor Vojcek 60.1 63.7 -5.7 190 NA Machining and assembly of driveline, suspension and engine 153. (734) 453-2300; www.locper.com CEO components for military and off-road vehicles Hatch Stamping Co. Ronald Hatch 60.0 B 75.8 -20.8 NA NA Manufactures metal automotive stampings, assemblies, 154. (734) 475-8628; www.hatchstamping.com chairman and CEO progressive dies and prototypes Guardian Alarm Co. Douglas Pierce 60.0 60.0 0.0 760 824 Alarms, guard services, medical monitoring 154. (248) 423-1000; www.guardianalarm.com CEO Arrow Uniform Rental Thomas Andris 59.7 64.2 -6.9 NA NA Uniform rental and sales 156. (313) 299-5000; www.arrowuniform.com chairman Advantage Management Group-The Kelsey Schwartz and Reginald 55.2 54.8 0.7 1,100 NA Nursing homes 157. Hartsfield Manors owners (248) 569-8400; themanors.net Unibar Services Inc. G. Jean Davis, president and 55.0 49.0 12.2 NA 1,500 Utility support servicers including contract meter reading, AMI/ (734) 769-2600; www.unibarinc.com CEO AMR meter installation, field credit services, service diversion, 158. John McManus, COO damage prevention and underground facility locating, damage investigation Madison Electric Co. Joseph Schneider 55.0 75.8 -27.4 131 131 Electrical, electronic and automation distributor 158. (586) 825-0200; www.madisonelectric.com president Better Made Snack Foods Inc. Salvatore Cipriano 55.0 54.0 1.9 200 246 Snack foods 158. (313) 925-4774; www.bettermadesnackfoods.com CEO MIG Detroit Paul Jenkins Jr. 54.0 B 80.5 -32.9 NA NA General contractor, construction manager (313) 964-3155; www.migdetroit.com vice president of business 161. development and marketing operations International Extrusions Nicholas Noecker 54.0 61.0 -11.5 125 NA Manufacturer of aluminum extruded profiles, powder-coat 161. (734) 427-8700; www.extrusion.net president and CEO painting and fabrication facilities James Group International Inc. John James 53.0 69.1 -23.4 131 NA Supply-chain management, material management, export, import, 163. (313) 841-0070; www.jamesgroupintl.com chairman and CEO and more Domestic Linen Supply & Laundry Co. Bruce Colton 52.5 52.5 0.0 85 590 Rental and laundering of uniforms, dust-control products, wiping 164. (248) 737-2000; www.domesticuniform.com president cloths and other reusable textiles. Restroom management services Roseville Chrysler Jeep Inc. Michael Riehl 51.5 71.3 -27.8 81 NA Automobile dealership 165. (586) 859-2500; www.mikeriehls.com president Glassman Automotive Group Inc. George Glassman 50.2 74.2 -32.3 72 NA Automobile dealerships 166. (800) 354-5558; www.glassmanautogroup.com president Wade Trim Douglas Watson 48.9 53.3 -8.4 131 339 Consulting engineering and planning services 167. (313) 961-3650; www.wadetrim.com CEO
B Crain's estimate. Continued on Page 28 20100517-NEWS--0028-NAT-CCI-CD_-- 5/14/2010 10:03 AM Page 1
Page 28 CRAIN’S DETROIT BUSINESS May 17, 2010
CRAIN'S LIST: PRIVATE 200 Ranked by 2009 revenue
Continued from Page 27 Full-time local Worldwide Company Top executive Revenue 2009 Revenue 2008 employees employees Rank Phone; Web site ($000,000) ($000,000) Percent change Jan. 2010 Jan. 2010 Type of business FH Martin Constructors R. Andrew Martin Jr. $48.0 B $71.5 -32.9% NA NA General contractor 168. (586) 558-2100; www.fhmartin.com president Colasanti Cos. Angelo Colasanti 47.5 152.9 -68.9 NA NA Construction 169. (313) 567-0060; www.colasantigroup.com CEO TTi Lori Blaker 47.0 38.1 23.4 260 1,024 Staffing, outsourcing and training 170. (248) 853-5550; www.ttinao.com president and CEO Big Boy Restaurants International L.L.C. Keith Sirois 47.0 60.0 -21.7 233 468 Restaurants, food manufacturer 170. (586) 759-6000; www.bigboy.com CEO Somerset Buick GMC Inc. James Bechtell, general 46.9 60.3 -22.2 55 0 Automobile dealership (248) 643-8211; www.somersetbuickgmc.com manager and owner 172. John McMullen, owner John Fowler, owner and president Link Engineering Co. Roy Link 45.0 54.0 C -16.7 220 260 Manufacturer of testing equipment and testing services 173. (734) 453-0800; linkeng.com president and CEO Frank Rewold and Son Inc. Frank Rewold 44.9 76.2 -41.1 48 NA Construction management, general contracting, design build 174. (248) 601-1215; www.frankrewold.com president and CEO Ram's Horn Eugene Kasapis 42.9 42.7 0.4 1,300 NA Family restaurant chain franchiser 175. (248) 350-3430; ramshornrestaurants.com president and CEO Proper Group International Geoffrey O'Brien 42.0 66.0 -36.4 NA NA Plastic injection molds, injection molded parts, rapid prototyping, 176. (586) 779-8787; www.propergroupintl.com CEO contract services and aerospace machining Flexible Products Doug Reid 42.0 54.0 -22.2 NA 185 Molded rubber products for chassis and underbody 176. (248) 852-5500; www.flexible-products.com president Rodgers Chevrolet Inc. Pamela Rodgers 40.0 50.5 -20.8 NA NA Automobile dealership 178. (734) 676-9600; www.rodgerschevrolet.com president Malloy Inc. William Upton 40.0 46.2 -13.4 269 274 Book printer and binder 178. (734) 665-6113; www.malloy.com president SSOE Group Robert Siebenaller 38.0 42.0 -9.5 129 NA Architects and engineers 180. (248) 643-6222; www.ssoe.com division manager NTH Consultants Ltd. Keith Swaffar 37.7 48.0 -21.4 166 218 Infrastructure engineering and environmental services 181. (313) 237-3900; www.nthconsultants.com president and CEO Electro-Matic Products Inc. James Baker 37.2 51.9 B -28.4 101 NA Wholesale distribution of high-technology automation 182. (248) 478-1182; www.electro-matic.com president components; digital signage, LED and LCD displays, LED lighting products, and connectivity products PMA Consultants L.L.C. Dr. Gui Ponce de Leon 36.5 39.0 -6.4 48 200 Program, project, and construction management consulting; 183. (313) 963-8863; www.pmaconsultants.com managing principal and CEO expert witness services ePrize L.L.C. Matt Wise 36.1 40.5 -10.9 221 255 Interactive promotion company 184. (248) 543-6800; www.eprize.com CEO Kasco Inc. Stephen Kassab, president 35.9 34.0 5.6 51 NA Construction (248) 547-1210; www.kascoinc.com Michael Engle, vice president 185. of estimating and business development Skyway Precision Inc. William Bonnell 35.4 56.9 -37.8 134 134 CNC production machining 186. (734) 454-3550; www.skywayprecision.com president MPS Trading L.L.C. Charlie Williams 35.4 118.6 -70.1 5 NA Scrap metal management 186. (313) 841-7588; www.mpsgrp.com CEO, chairman and president Marisa Industries Inc. Jesse Lopez 35.0 62.0 -43.5 250 NA Stamped metal products 188. (586) 754-3000; www.marisaind.com president and CEO A.Z. Shmina Inc. Andrew Shmina 35.0 30.0 16.7 42 NA Building contractor 188. (810) 227-5100; www.azshmina.com president Oliver/Hatcher Construction and Paul Hatcher, president 35.0 B 52.2 -33.0 NA NA General contractor 188. Development Inc. Paul Oliver, principal (248) 374-1100; www.oliverhatcher.com Mars Advertising Co. Inc. Ken Barnett 34.3 33.4 2.7 335 465 Advertising agency 191. (248) 936-2200; www.marsusa.com CEO Art Moran Pontiac-GMC Inc. Thomas Moran 34.0 46.0 B -26.1 59 NA Architecture, engineering, planning, design and management 192. (248) 353-9000; www.artmoran.com president and Arthur Moran director Lowry Computer Products Inc. Michael Lowry 34.0 45.0 -24.4 68 135 National manufacturer and systems integrator specializing in 192. (810) 229-7200; www.lowrycomputer.com president and CEO wireless, RFID, bar code and data collection solutions Albert Kahn family of companies Thomas Moran, president 34.0 44.9 -24.3 185 250 Architecture, Engineering, Planning, Design and Management 192. (313) 202-7000; www.albertkahn.com Arthur Moran, director MPS Group Inc. Charlie Williams 33.7 45.1 -25.4 90 NA Facility management, industrial and environmental cleanup, 195. (313) 841-7588; www.mpsgrp.com chairman, president and CEO flooring installation, paint shop cleaning Load One Transportation & Logistics John Elliott II 32.5 29.0 12.1 204 222 Air charter, air freight-cargo, ground expedite, truckload, partial 196. (734) 947-9440; www.load1.com president truckload, flatbed, drop-deck flats, curtainside flatbeds, temp control and intermodal management Motor City Stamping Inc. Judith Kucway 32.0 45.0 -28.9 NA NA Stamping plant, automotive welding, assembly, dies and 197. (586) 949-8420; www.mcstamp.com CEO and CFO prototypes H.B. Stubbs Cos. Scott Stubbs 32.0 63.0 -49.2 NA NA Exhibit and event marketing 197. (586) 574-9700; www.hbstubbs.com president and CEO Harley Ellis Devereaux Corp. Gary Skog 31.5 65.0 -51.5 160 230 Architecture, engineering, strategic planning, program 199. (248) 262-1500; www.harleyellisdevereaux.com CEO management, real estate, and more DeMattia Group Gary Roberts 31.3 53.2 -41.2 33 33 General contractor, real estate development, architecture 200. (734) 453-2000; www.demattia.com president and CEO
This list of privately held companies is an approximate compilation of the largest companies in Wayne, Oakland, Macomb, Livingston and Washtenaw counties that do not have stock traded on a public exchange. It is not a complete listing but the most comprehensive available. Crain's estimates are based on industry analysis and benchmarks, news reports and a wide range of other sources. Actual revenue figures may vary. B Crain's estimate. C Company estimate. LIST RESEARCHED BY ANNE MARKS 20100517-NEWS--0029-NAT-CCI-CD_-- 5/14/2010 10:02 AM Page 1
May 17, 2010 CRAIN’S DETROIT BUSINESS Page 29
BUSINESS DIARY ACQUISITIONS NEW PRODUCTS P.C., Bingham Farms, launched a new ning services, has become an autho- STARTUPS website: www.fctalkcenter.com. rized reseller of a complete data recov- Superior Capital Partners L.L.C., a De- Powermat, Commerce Township, a Compete Communications, a market- Tomkiw Dalton P.L.C., Royal Oak, has ery service specializing in recovering troit-based private-equity firm, has wireless charging company, an- data from desktop drives, laptop ing and communications agency, at formed Edge Adhesives Holdings Inc., nounced the availability of the Power- launched an online resource offering 1175 W. Long Lake Road, Troy. Tele- information and advice pertaining to drives, external drives, servers, RAID an investment platform created to ac- mat 2X two-position charging mat in systems, network attached storage de- phone: (248) 229-9980. Website: the Religious Land Use and Institu- quire the assets of Fort Worth, Texas- Sprint stores nationwide. Website: vices, storage area network devices, www.competecommunications.com. tionalized Persons Act. Website: based Q’SO Inc. www.powermat.com. flash drives and camera media. Tele- Good Egg L.L.C., a finance manage- www.attorneysforlanduse.com. 123Net, Southfield, a privately held Federal-Mogul Corp., Southfield, a phone: (248) 642-3287. ment company, at 23309 Ford Road, carrier of voice and data, has acquired global automotive supplier, has devel- Plastic Surgery Arts and Spa, Rochester Thomson Reuters, Ann Arbor, an- Suite 192, Dearborn. Telephone: (313) several hundred Internet customers oped a new seal design, called Micro- Hills, launched a website concerning nounced the launch of its new pharma- 410-3748. Website: www.goodegg formerly served by 20/20 Communi- Torq, that reduces friction by up to surgical and nonsurgical procedures: cy intervention program for hospitals. money.com. cations, the Ann Arbor-based private- 70 percent. Website: www.federal www.plasticsurgeryarts.com. Website: www.thomsonreuters.com. Public Pool, an art gallery, at 3309 Can- sector partner in the Wireless Washte- mogul.com. Coats Funeral Home, Waterford iff, Hamtramck. Telephone: (313) 506- naw Project. Township and Clarkston, is now offer- OTHER 9048. E-mail: publicpoolhamtramck@ NEW SERVICES gmail.com. ing live webcasting of funerals and Masco Corp., Taylor, is combining its CALL FOR ENTRIES Michigan First Credit Union, Lathrup memorials in a safe and secure loca- two cabinet companies, Masco Retail Pave the Way Beverage Co. L.L.C., Commercial Real Estate Women De- Village, has launched an online busi- tion. Website: www.coatsfuneral Cabinet Group, Middlefield, Ohio, and manufacturers of Envo Water, an eco- troit Chapter, Bloomfield Hills, an- ness banking website: www.michigan home.com. Masco Builder Cabinet Group, Adrian, friendly packaged bottle of water, at firstbusiness.com. nounces last call for entries for its Im- Franklin CIO, Bloomfield Hills, a to form a new organization, Masco 200 W. Secnd St. in Royal Oak. Tele- pact Awards, honoring commercial The Financial Crisis Talk Center of provider of information-technology Cabinetry, to be located at 4600 Arrow- phone: (248) 255-1055. Website: properties with a positive impact on Thav Gross Steinway and Bennett consulting and disaster recovery plan- head Drive, Ann Arbor Township. www.envowater.com. Southeast Michigan. The entry fee is $100 and the request for entry package and fee are due June 1. Contact: Lynn Trevor, (248) 354-5100; e-mail: [email protected]; website: www.crewdetroit.org. CONTRACTS DeMattia Group, Plymouth, was con- tracted by Ventower Industries L.L.C., Monroe, to provide architecture and construction services for a 115,000- square-foot manufacturing plant at the Port of Monroe in Monroe. The Sterling Heights Regional Cham- ber of Commerce and Industry and the Anchor Bay Chamber of Commerce have signed an agreement to share services and collaborate on events, programs and other functions. Hendrickson, Woodbridge, Ill., and AxleTech International, Troy, have re- ceived a production award from Navis- tar Defense L.L.C., Warrenville, Ill., for independent suspension systems on 1,050 new International MaxxPro Dash vehicles. Production will be based at the AxleTech flagship opera- tion in Oshkosh, Wis. EXPANSIONS Patti Engineering Inc., Auburn Hills, is opening a new northeast United States regional office in North An- dover, Mass. Oberweis Ice Cream and Dairy Stores, North Aurora, Ill., has opened a store at 32808 Woodward Ave., Royal Oak. Website: www.oberweis.com. Children’s Hospital of Michigan Spe- cialty Center at 5635 W. Maple Road, West Bloomfield Township, to house pediatric surgery services. Panache Entertainment, Troy, has ex- panded to offer local musicians for hire in Chicago. Website: www.epanache.com Northeast Guidance Center has opened The Wellness Academy, a 7RKHOS\RXXQGHUVWDQGWKHÀQDQFLDOUHSHUFXVVLRQV training center, at 2900 Conner Ave., Bldg. A, Detroit. Telephone: (313) 308- 0HUFHULVRIIHULQJ\RXDQH[FOXVLYHIUHHWULDORI+ %.QRZ+RZ 1403. Website: www.neguidance.org. Michigan State University, East Lans- DQRQOLQHKHDOWKUHIRUPUHVRXUFH*HWVWDUWHGDW ing, has broken ground for the new Plant Sciences Expansion. Smith- Group, Detroit, is providing architec- ture, engineering, interiors, lab de- ZZZPHUFHUFRPIUHHWULDO sign, lab planning and site design services for the expansion. Michigan Office Solutions, Grand Rapids, has opened a new office at 40000 Grand River Ave., Suite 500, Novi. Telephone: (800) 442-9070. Web- site: www.mos-xerox.com. The Michigan Medical Marijuana Cer- tification Center, Southfield, has opened a new location at 29777 Tele- graph Road, Suite 1451, Southfield. It has also opened a second facility in Grand Rapids. Telephone: (248) 932- 6400. Website: www.mmmcc.net. MOVES Giffels-Webster Engineers, a civil en- gineering and surveying firm, from 407 E. Fort St. to 28 W. Adams, Suite 1200, Detroit. Arzika L.L.C., a marketing and event management company, from 6937 Beach Road to 570 Kirts Blvd., Suite 214, Troy. 20100517-NEWS--0030-NAT-CCI-CD_-- 5/14/2010 10:02 AM Page 1
Page 30 CRAIN’S DETROIT BUSINESS May 17, 2010
CareerWorks online Visit www.crainsdetroit.com /careerworks to search for jobs, post a résumé or find talent.
EMPLOYMENT CareerTransition CALENDAR Name: Harry Torigian, 45. Self-Employed? Education: Bachelor’s degree in business ad- Lawrence Tech hosts career ministration from the Detroit College of Busi- Affordable Insurance ness, 1995. networking reception Past career: Torigian worked in sales for more than 20 years, most recently for Safety- Lawrence Technological University Kleen Systems in Romulus as a sales specialist. in Southfield is hosting a free ca- New career: Torigian bought a franchise ter- Life reer networking reception for dis- ritory of Bevinco Corp., a Toronto-based profit placed workers with college de- management company. Working from his Health grees, not limited to Lawrence Livonia home, he visits with bar and restau- Tech students and alumni. rant owners to audit food and beverage losses. Retirement The event is 5:30-8:30 p.m. Harry Torigian He begins by counting every closed bottle and Thursday. The reception is de- Former career: weighing every open bottle, and then deter- Long-Term Care signed to provide employers and Sales specialist mining where the product is going, by the job seekers with face-to-face inter- New career: gram. Losses may be due to theft or over-pour- action in a professional environ- Bevinco Corp. ing, or any number of things. Torigian says (800) 987-0290 ment. Participants are asked to franchise owner most bars lose between 5 percent and 20 per- register at www.ltu.edu/ cent of their stock. recovery/receptions.asp. Why he decided to change careers: “I was on Zayti Agency Since January 2009, more than layoff. I had the opportunity to be exposed to 3,000 participants have met with Bevinco, and I went on audits with the regional IIS000320 approximately 300 industry repre- manager. I was in my mid-’40s and I had been sentatives from Southeast Michi- downsized twice. I decided that it would be bet- Call your local Insphere office for a FREE quote today! gan. ter to have my future in my own hands. Plus, I really feel like I can make an impact with this business.” New FastTrac conference set How he made the transition: “I have a food ser- TechTown, the Kauffman Founda- vices background. I’m a certified executive tion and the New Economy Initiative chef. I was in sales for over 20 years, but when I are hosting a new class of emerg- was laid off I wanted to go back to what I know. ing entrepreneurs at the FastTrac I got my training done, started bringing clients to the Future conference 7:30 a.m.- in and now I’m off and running.” 6 p.m. May 25-26 at the McGregor Obstacles overcome: “Time has been the Memorial Conference Center, 495 biggest thing, as I have been working two jobs Ferry Mall, on the Wayne State Uni- while making the transition. The good thing is versity campus. bars and restaurants are generally not 9 to 5 businesses, so I can make my appointments af- The free conference will include ter business hours.” breakout sessions on entrepre- Advice for others: “Do your due diligence. neurial topics, information tables With Bevinco, I knew it was an established and opportunities to talk one-on- franchise and I knew that there was a real one with a business adviser. need, an ongoing need. In good or bad times, Pulitzer Prize nominee and en- people will want to maximize revenue. So ask a trepreneur Clifton Taulbert will lot of questions before making the leap.” offer a message of hope for Detroit — Brett Callwood entrepreneurs. If you have made a similar change in your ca- For more information, contact reer, or know someone who has made an inter- Allison Lumb at (313) 879-4478 or esting career transition, contact Andy Chapelle, [email protected] or go to managing editor at Crain’s Detroit Business at wayne.edu/fasttrac. [email protected]. Career fair targets CIA, FBI, Army, National Guard The Arab American and Chaldean Council is hosting a career fair for people interested in positions Our cultural places with the CIA, FBI, U.S. Army, and the National Guard 6-8 p.m. Thurs- offer outdoor spaces. day at the Regency Manor and Banquet Center, 25228 W. 12 Mile Road, Southfield. Candidates must be 18 years or Complimentary concierge planning. older, and most jobs require an Entertainment, events, meetings and more. undergraduate college degree or better. Recruiters are especially seeking those with Arabic, Dari, and Pashtu language skills in ad- the dition to other languages. Posi- tions range from professional cultural staff careers to language special- concierge ists. a program of the cultural alliance Interested job seekers are of southeastern michigan, strongly encouraged to visit the a 501(c)(3) organization participating employer websites before the session to become aware of the positions available. For more information, please www.theculturalconcierge.org contact Kimberly Hassan at [email protected] or (248) 248.766.5599 [email protected] 559-1990. 20100517-NEWS--0031-NAT-CCI-CD_-- 5/14/2010 10:00 AM Page 1
May 17, 2010 CRAIN’S DETROIT BUSINESS Page 31
PEOPLE Southfield, from partner, Bush baum Bond Senecal and Partners, New Plante & Moran P.L.L.C., Southfield. partner and practice director for the IN THE SPOTLIGHT Seyferth and Paige P.L.L.C., Troy. York. Stephen Hopkins to executive director Health Plan Business Unit, Computer Eric Bowden to principal, Colombo & of Lifechoice Solutions, Evangelical Services Corp., Seattle. MGM Grand Colombo P.C., Bloomfield Hills, from NONPROFITS Homes of Michigan, Ann Arbor, from Brad Ross to executive vice president Detroit has associate. named Troy Kathleen Mennillo to executive director, interim director of the Memory Sup- of region Americas, Elopak Inc., New Hudson, from division vice president Hammie vice International Hearing Society, Livonia, port Center at Brecon Village, Saline. MARKETING and general manager of packaging president of from education manager. Barbara Yolles to executive vice presi- services, Sonoco, Winston-Salem, N.C. slot Jenny Cederstrom to CFO, American SERVICES operations. dent, McCann Midwest, Birmingham, Tom Csatari to vice president of sales from executive vice president and Red Cross Southeastern Michigan Chap- Mark Scruggs to partner, Santa Rosa and delivery, The Epitec Group Inc., Hammie, 45, group managing director, Kirshen- ter, Detroit, from senior associate, Consulting L.L.C., Southfield, from Southfield, from director of sales. had been director of slot operations. Hammie Slot operations represent 65 percent to 85 percent of the MGM Grand Detroit’s total revenue, the casino said. He succeeds Hugh Flack. Hammie attended a program in advanced gaming management studies with an emphasis on slot 3D3@G 0CA7<3AA 6/A / operations at the University of Nevada in Reno. He also attended AB=@G B3::CAG=C@A Casino Career Institute. µEScaSRb]QOZZ]\S]T]c`e]`Ya^OQSa ·BVS :Oc\R`g @]][¸ ^`]POPZg PSQOcaS Wb DISTRIBUTION David Gurizzian to eOa bVS ZOc\R`g `]][ ES VOR O `cZS( <] CFO, RKA Petro- Q]\TS`S\QS QOZZa Rc`W\U bVS a^W\ QgQZS leum Cos. Inc., Romulus, from BVO\YTcZZg eS¸`S U`]eW\U O\R []dW\U corporate con- troller. W\b]O\Sea^OQS\SfbeSSY ¶ EDUCATION John Murphy to director of ceram- ic arts depart- ment, Birming- Gurizzian ham Bloomfield Art Center, Birmingham, from pro- gram analyst, Ford Motor Co., Dear- born. Darryl Taylor to director of Horizons- Upward Bound program, Cranbrook Schools, Bloomfield Hills, remaining retired dental officer, U.S. Marine Corps, Camp Pendleton, Calif. HEALTH CARE Joseph Hurshe to vice president of op- erations for west region, St. John Prov- idence Health System, Detroit, from COO, Vista Health System, Lake County, Ill. HOSPITALITY David Kipfmiller to general manager, Hilton Garden Inn Downtown Detroit, De- troit, from general manager, Courtyard by Marriott, Livonia and Troy; also, Pamela McDonald to director of sales, from sales manager, Columbia Sussex Hotel Co., Crestview Hills, Ky. LAW Brian Kelly to senior associate, Maddin, Hauser, Wartell, Roth and Heller P.C.,
PEOPLE GUIDELINES /b 4WTbV BVW`R 0O\Y SdS`g PcaW\Saa PO\YW\U `SZObW]\aVW^ PSUW\a Announcements are limited to management positions. Nonprofit eWbV O Q]\dS`aObW]\ EVS`S g]c R] []ab ]T bVS bOZYW\U O\R eS and industry group board ZWabS\ BVS\]\QSeSc\RS`abO\Rg]c`PcaW\SaaO\Rg]c`\SSRa appointments can be found at www.crainsdetroit.com. Send eS USb b] e]`Y /\R Oa eS PcWZR g]c` ¿\O\QWOZ a]ZcbW]\a eS submissions to Departments, [OYSac`Sb]YSS^g]cW\d]ZdSR 0SQOcaSacQQSaaW\PcaW\SaaWa Crain’s Detroit Business, 1155 Gratiot Ave., Detroit, MI 48207- `O`SZgOQVWSdSROZ]\S 2997, or send e-mail to [email protected]. Releases must contain the person’s :Sb¸aVOdSOQ]\dS`aObW]\ Ab]^W\g]c`Z]QOZ name, new title, company, city in which the person will work, former 4WTbVBVW`R0O\YQOZZcaOb&%% " '%]`dWaWb#! Q][ title, former company (if not promoted from within) and former 4WTbVBVW`R0O\Y;S[PS`4271 city in which the person worked. Photos are welcome, but we cannot guarantee they will be used. 20100517-NEWS--0032-NAT-CCI-CD_-- 5/14/2010 9:59 AM Page 1
Page 32 CRAIN’S DETROIT BUSINESS May 17, 2010
CALENDAR TUESDAY crewnetwork.com; website: www. Chrysler Group L.L.C. Best Western crewdetroit.org. Sterling Inn, Sterling Heights. $30 EVENT SPOTLIGHTS THE FUTURE OF COBO, DETROIT MAY 18 members, $40 guests. Contact: (586) 731-5400, ext. 10; e-mail: Crain’s Detroit Business and the Detroit Metro CREW Detroit Bring a Guest Member- [email protected]; website: Michigan Society of Association Convention and ship Drive. 5:30-8 p.m. Open to current WEDNESDAY www.shrcci.com. Executives are sponsoring “An Visitors Bureau; members and nonmember profession- MAY 19 als in a commercial real estate-related Inside Perspective on the Future of Walter Watkins, Cobo and Detroit” Wednesday at interim CEO, field who are interested in learning Michigan Week Expo. 10 a.m.-3 p.m. THURSDAY more about CREW Detroit. Rosie with lunch at noon. Sterling Heights the Doubletree Guest Suites Fort Detroit Regional O’Grady’s, Ferndale. $40. Contact: Regional Chamber. With: Ralph Gilles, MAY 20 Shelby, Detroit. Convention (785) 832-1808; e-mail: crewdetroit@ Center; and president and CEO of Dodge brand, 75th Anniversary Fundraiser Gala. Learn more on how the Cobo Center renovations and expansion Cheryl Ronk, 5:30-10 p.m. Detroit Economic Club. president, Cocktail-attire celebration with plans will impact Southeast Michigan businesses, MSAE. strolling dinner, afterglow and live Alexander music. Westin Book Cadillac, Detroit. associations and meeting The program is $250. Contact: (313) 963-8547; e-mail: professionals; and how Detroit 10 a.m.-noon and lunch noon-1 [email protected]; website: secured the 2015 American p.m. Cost is $60 MSAE members, www.econclub.org. Society of Association Executives $80 nonmembers. Preregister at Annual Meeting and Exposition. www.msae.org and click on the Women Entrepreneurs and Policy: Featured presenters are Larry event or call Annie Taggart at (517) Meet the Candidates. 8:30-11 a.m. Na- Alexander, president and CEO, 332-6723. tional Association of Women Business Owners Greater Detroit Chapter. Net- working and a chance to meet the can- didates who may soon represent your district. Walsh College, Novi. $15 members, $25 nonmembers. MARKET PLACE Contact: (313) 961-4748; e-mail: asmarshall@ nawbogdc.org; website: www.nawbogdc.org. ANNOUNCEMENTS & MISCELLANEOUS SERVICES Gold Is S-O-A-R-I-N-G! FINANCIAL SERVICES Yearly Average Price Per Ounce COMING EVENTS 2001: $271 2004: $409 2007: $695 2002: $309 2005: $444 2008: $871 WXW Forum 10. 8 a.m.-7 p.m. May 22. 2003: $363 2006: $603 2009: $972 Women’s Exchange of Washtenaw. May 13, 2010 gold price: $1,238.00 With: Dr. Ora Pescovitz, CEO, Univer- Do you have your gold coins??? sity of Michigan Health System; Kristi Birmingham Coin & Jewelry, Inc., 33802 Woodward, Birmingham Mailloux, president, Molly Maid Inc.; 248-642-1234 Please Call For Appt. and Diane Ward, CEO, Southeastern A Unique Investment Partner Michigan Red Cross Blood Services. BUSINESS & Kensington Court Hotel, Ann Arbor. Next Capital Resource Group provides... INVESTMENTS $95. Contact: (734) 741-1134; e-mail: ¯ Working Capital [email protected]; web- BUSINESSES FOR SALE site: www.wxwbusiness.com. ¯ Administrative Services ...without giving up equity! Established gourmet market grossing $3.7 million; SDD, Class C tavern/wine bar; humidor, deli, bakery, Tee It Up for Business-A Women’s meat, produce, etc. in 18,000 sq. ft. showplace. Ask- Guide. 5:30-8 p.m. May 24. Executive www.nextCRG.com ing $3.9 million plus inventory. Call (248) 888-1466. Women’s Golf Association and Info- 248.559.6899 Investment Analyst Job Posting rum. With: Terri Ryan, city of South- INVESTMENT OPPORTUNITIES field head golf pro; others. Northville Hills Golf Club, Northville. $20 EWGA Successful marketing firm in Metro The Retirement Systems of the City of Detroit is conducting a and Inforum members, $25 guests. LEGAL SERVICES Detroit seeking investment search for an Investment Analyst. The Retirement Systems of Contact: (248) 932-5450; e-mail: colleen. opportunities. [email protected]; ATTORNEY If you own or manage a firm in the Marketing, the City of Detroit is comprised of two Michigan public employee website: www.inforummichigan.org. Who represents Suppliers, Subcontractors, Service PR, or Ad Agency business and are looking for Providers, Independent Contractors, Independent retirement systems; General Retirement System and the Police Sales Representatives etc. to pursue payment of financing or a buy-out, please e-mail your contact information to and Fire Retirement System. Both systems are administered by . 11:30 a.m.-1:30 delinquent commercial accounts receivable. Detroit Economic Club Hourly fee or contingent fee arrangements may be [email protected] a Board of Trustees. The two systems have combined p.m. May 25. With: Carlos Ghosn, negotiated. approximately 6 billion assets. Its fiscal year ends June 30 of chairman and CEO, Renault-Nissan Fred Mann Attorney at Law alliance. Cobo Center, Detroit. $45 fredmann48304@comcast.net or (248) 645-0120 each year. The systems have approximately 13,000 active members, $55 guests of members, $75 Call Us For Personalized members and 20,000 retirees and beneficiaries. nonmembers. Contact: (313) 963-8547; Service: (313) 446-6068 e-mail: [email protected]; $$ Credit Clean Up Experts $$ The Systems are governmental plans and are generally not website: www.econclub.org. Attention small business owners and professionals who are CLOSING TIMES: Monday 3 p.m., affected by the negative economy and want to take control subject to ERISA. The Systems are subject to various state one week prior to publication date. Leaders Without Borders-Michigan’s and improve your credit scores. We will develop a custom Please call us for holiday closing times. statutes and the Detroit City Charter. Michigan Public Act 314 program for you at an affordable rate. Defining Moment. 7:30-10 a.m. May 27. FAX: (313) 446-1757 imposes limitations on what fraction of total plan assets may be Targosz & Walker Legal Group -- 248.443.5250 Detroit Orientation Institute, Leader- E-MAIL: [email protected] invested in certain asset classes, including alternative ship Detroit, Leadership Oakland, www.targoszwalker.com Leadership Macomb and Leadership INTERNET: investments. www.crainsdetroit.com/section/classifieds Windsor Essex. With: Phil Power, founder of The Center for Michigan; Confidential Reply Boxes Available The position reports to the Executive Secretary of the Retirement Kurt Metzger, director of Data Driven Advertise your PAYMENT: All classified ads must be Detroit; and Desiree Cooper, senior Systems. Responsibilities include, preparing monthly cash prepaid. Checks, money order or forecasts and cash flow strategies, monthly asset reporting with analyst, new media, City Connect De- Products and Services Crain’s credit approval accepted. troit. Westin, Southfield. $30 for class Credit cards accepted. compliance and comparison to state law and the board approved members of sponsoring organizations, in allocation model, tracking board’s investments rate of return, $40 for guests. Deadline May 19. Con- See implementing asset transfers, monitoring security lending tact Ann Slawnik, (313) 577-0171; Crain’s Detroit Business Crainsdetroit.com/Section/Classifieds e-mail: [email protected]; program, oversee short term investments, monitoring website www.doi.wayne.edu/lwb.php. for more classified advertisements investments for compliance with contractual obligations, prepare analysis and reports for use by Board of Trustees. Detroit Economic Club. 11:30 a.m.-1:30 p.m. May 27. With: Scott Serota, pres- The ideal candidate will have excellent written and oral ident and CEO, Blue Cross Blue Shield communication skills, a fundamental knowledge of the financial Association. Detroit Marriott Renais- sance Center. $45 members, $55 markets, knowledge of various credit instruments, investment guests, $75 nonmembers. Contact: vehicles and portfolio strategies, familiarity with governmental (313) 963-8547; e-mail: jwayland@econ and municipal accounting principals, practices, regulations and club.org; website: www.econclub.org. experience analyzing and evaluating investment strategies. Changing Realities of Business Phil- Minimum qualifications and preferences include a bachelor’s anthropy. 8 a.m.-noon. May 27. degree (master’s preferred), CFA certification and experience Lawrence Technological University. with the investments of a pension fund is desirable. However, all With: Peter Remington, president, The Remington Group; Paul Hille- applicants with relevant experience will also be considered. gonds, senior vice president, corpo- rate affairs, DTE Energy Co.; Steve Apply at [email protected] by May 28, 2010. Brown, senior vice president, univer- Candidate review to begin in June, 2010. sity advancement, LTU; others. $25. Contact: (248) 204-3095; website: www.ltu.edu/management. 20100517-NEWS--0033-NAT-CCI-CD_-- 5/14/2010 5:27 PM Page 1
May 17, 2010 CRAIN’S DETROIT BUSINESS Page 33 State finances at top of Center for Michigan reform agenda
BY SHERRI WELCH candidates, Power said. sues, the center plans to use its “I think what (we) are seeing in CRAIN’S DETROIT BUSINESS Aside from a reform agenda, the website www.thecenterformich both groups is there needs to be AGENDA FOR 2010 report includes the 2010 Michigan igan.net to launch petitions for holistic change,” said Business Lead- The Center for Michigan’s citizens’ After conversations with 10,000 Scorecard, published in partner- things like term-limit reform, a ers for Michigan CEO Doug Rothwell. Michigan residents, the Center for agenda for Michigan’s future: ship with Data Driven Detroit and its rewrite of the tax code and a shift Business Leaders sent out a 25- Ⅲ Michigan is ready to release an director, Kurt Metzger. of budget dollars to education and question survey to gubernatorial Create a more business-friendly, entrepreneurial environment. agenda to help the next governor The scorecard gives the state’s away from prisons, Bebow said. and legislative candidates and and new legislators “hit the performance on a number of mea- The center also plans to ask resi- plans to post their responses on Ⅲ Overhaul the Michigan tax system for the 21st century. ground running” next year. sures residents deem most impor- dents to host 50 legislative debates www.michiganturnaroundplan.com at The nonprofit think tank, which tant for the state’s economic trans- around the state and to convene a the end of this month. Ⅲ Build on Michigan’s distinctive has conducted 585 community con- formation. “Truth Squad” to blog about politi- About 70 percent of the candi- and competitive assets. versations since fall 2007, turned They include: educational invest- cal ads at www.michigantruth dates say they are aligned with Ⅲ Change how and what schools those conversations into a 10-point ment and performance; college af- squad.com, “calling fouls when we Business Leaders’ reform agenda, teach. plan laid out in “Michigan’s Defin- fordability; young talent popula- see things that don’t stack up … and Rothwell said. “The big question Ⅲ Transform education operations ing Moment: 10,000 Voices to tion; business tax burden; venture (also) calling no-fouls,” he said. mark is what they propose to do.” and funding. Transform our State, Citizens’ capital, research and development; To keep residents engaged, the Both the Center for Michigan Ⅲ Hold educators, parents and Agenda 2010.” homeownership; philanthropy; en- center plans to give out T-shirts and Business Leaders’ reform students to higher standards. Ann Arbor-based Center for vironment; voter participation; gov- and other prizes to people who agendas are meant to present a Ⅲ Hold politicians and ourselves Michigan plans to release the re- ernment efficiency; state bond rat- send in the campaign pamphlets menu for change as opposed to a more accountable. port — aimed at long-term reform ings; and burden of incarceration. they get in the mail and give feed- specific recipe, Powers said. Ⅲ Lengthen or repeal term limits. — during the Detroit Regional Cham- “If candidates can’t answer back on the ads they see on televi- “We’re trying to set the table for Ⅲ Execute transparent and ber’s 2010 Mackinac Policy Confer- questions about what’s in the sion and hear on the radio. the (legislators) coming in so it strategic state budgets. ence, June 2-5. scorecard, they don’t deserve to go There’s a lot of similarity be- will harder for them to duck the Ⅲ Intensify consolidation and “Ultimately we are hoping to to Lansing,” Bebow said. tween what business groups are hard choices.” service sharing in local have three or four main points for To get even more people inter- proposing and the change resi- Sherri Welch: (313) 446-1694, government. reform so well set out that they ested in the state’s big-picture is- dents want to see, Bebow said. [email protected] crystallize that consensus for pub- lic reform” before the new gover- nor and legisla- tors take office, said Phil Power, REAL ESTATE founder and president of the Center for AUCTIONS AUCTIONS INDUSTRIAL PROPERTY OFFICE BUILDING Michigan. “The first is- AUCTION INDUSTRIAL AVAILABLE NOW sue is to get REAL ESTATE Minimum Bid! FOR SALE Michigan’s fi- 4,000 to 100,000 sq. ft. 28111 Imperial Drive • Warren, MI $ !!! nancial house in 0,1,080%,'21/< 150,000 Power Also 10,000 & 25,000 sq. ft. order. The sec- 64)7&$3(&2'$8&7,21+(/'216,7( ond is to have a budget that re- Free Standing Bldgs w/truckwells. flects priorities.” 1 Mile from Metro Airport The center’s community conver- sations identified common priori- 160 N. Ortonville Rd - Groveland Twp, MI REA CONSTRUCTION ties from people around the state. • 100,515 SqFt Single Story Building on 10.46 Acres Tax reform is a big issue, Execu- $8&7,21 (734) 946-8730 • Existing Charter School Being Sold As Vacant Wednesday, May 19th +(/'21 tive Director John Bebow said. Cit- 6,7( • Building Renovated in 2005 izens are fed up with taxes and at 12:00 PM 5780 Ormond Rd. Springfield Twp., MI 48350 Also Heavy Industrial • 35 Classrooms, Gymnasium, Lunch Room This auction features two buildings: Sat., June 5th @ 11am s Preview & Registration @ 10am and Administrative Offices puzzled by the state budget. th and 23rd Land Available . Building 1 - 16,600 SF 2SHQ+RXVHV 0D\ 1RRQSP • Adjacent to St. Johns Macomb-Oakland Hospital “They want big-picture changes Building 2 - 10,000 SF CONTENTS TO BE AUCTIONED SAME DAY! Items include: metal working equip, . • Priced to Sell: $10,000,000 to what we fund and how we fund . Located on 3.98 Acres automotive items, Monte Carlo Race Car, sports/outdoor vehicles & equip. and www.reaconstruction.net much, much more! Don’t miss this auction, you will want to be there! 248.324.2000 it,” Bebow said. For more information, contact Auctioneer: For More Info Please Contact: Welcome Home! Unbelievable opportunity to own Bob Moon Other common themes of the Craig Herschel - [email protected] this incredible home! This is the home you’ve been waiting [email protected] Steve Eisenshtadt community conversations includ- THE TEAM No Signature. No Results. INVESTMENT PROPERTY 34975 W Twelve Mile Rd for at a price that cannot be duplicated! A friendly lifestyle [email protected] ed greater accountability and a de- out of the tension zone! Located on 5.3 rolling acres, 3,476 Farmington Hills, MI 48331 888.708.7070 Flat roof problems? - Maintenance free 20 yr. www.friedmanrealestate.com sire for more regionalism and www.signatureassociates.com/160ortonville.htm Sq.Ft., 3 Bed, 3.5 Bath Cape Cod. Guest/Mother-in-Law guaranteed standing seam metal roof. No tear off more funding for education — par- Suite. Designer kitchen w/hickory cabinetry, granite coun- necessary! Can go over almost any existing roof. All types of repairs. Solar electric roofing. 888-799-6918 ticularly higher education and 2802 US-23 ters, brick accent wall. Incl. Barn w/ 2 stalls, hayloft, heated OFFICE SPACE East Tawas, MI office/workshop. Walkout bsmt w/bar and rec. room, deck preschool — than for the state’s Rental Income Property prison system, Bebow said. w/Gazebo overlooking an amazing view. Flint Township Office Building Rose Auction Group, LLC (20) one-bedroom condos on “One concrete change that sur- Beth Rose 877.696.7653 CAI Auctioneer, Realtor RoseAuctionGroup.com 2009 Michigan State golf course in Clinton Township. prised us was the issue of term lim- Auctioneer Champion Reg. Auctioneer its,” Bebow said. “People are ready ID#2801000078 Fully-occupied to revisit term limits and either ex- $820,000-Net 10% return on investment INDUSTRIAL PROPERTY tend them or eliminate them.” 954.482.8954 • Class A Office Building For Lease The Center for Michigan plans 1,400sf Home on Lake Huron! • I-69 / I-75 / US23 near Bishop Airport to send the report to all political Built in 2003 on 158 x 200 Lot • Up to 20,000 Sq. Ft. Available INVESTMENT OPPORTUNITY • 300 car parking ONLINE ONLY AUCTION ** Purchase from Banks ** • Fully Furnished with 100 pre-wired workstations 531,000 SQ. FT. AVAILABLE • 800 kw backup generator th Bidding ends • General Offices, Call Center or Data Center Wed, May 26 at 3pm Income Producing Commercial Easily Accessible Low Rates Rail On-site Mgmt 248-496-3405 Inspection Dates: Exterior Storage www.waretechindustrialpark.com Real Estate in Great Locations RAIN S SEEKS th rd C ’ May 19 (10am-11:30am) & May 23 (12-1:30pm) CATELLUS GROUP, LLC 810-695-7700 248-840-8393 WOMEN TO WATCH NOMINEES WANTED TO LEASE Do you know a woman who is Space for Lease -- Pontiac MISCELLANEOUS BY poised to make a difference in her Best Deal in Town! U.S. GOVERNMENT company or industry in the next Vacant Land The U.S. Government is seeking office space year? Or one who had an (517) 676-9800 Almost 1-acre in Birmingham -- $635K to lease in Macomb County, preferably within innovative idea or developed an www.sheridanauctionservice.com — — — — — 10 miles of the Detroit Arsenal, consisting of innovative practice? Birmingham House for Lease the following: 3,300 SF, 4-bdrms, 3.5 baths, brick colonial, If so, she could be a candidate for Call Us For Personalized $4,000 per month includes lawn and snow removal. Exclusive use of a free-standing facility Crain’s Detroit Business’ “Women • Warehousing, Machine/Die Storage, Mfg. Broker Protected consisting of approximately 11,600 NSF of to Watch,” which will be published Service: (313) 446-6068 • M/59, Widetrack, and Woodward Area 586.759.4000 space suitable for administrative purposes Sept. 6. FAX: (313) 446-1757 • 5,000 to 200,000 Sq. Ft Available with with 70 parking spaces. We’re looking for businesswomen Offices, Short or Long Term Leases RESIDENTIAL PROPERTY For additional requirements and to express an of accomplishment at all career E-MAIL: [email protected] • 8 Interior Truck Wells, 16 Ft. Ceiling interest, please contact Jennifer Rahn at stages. Nominations should focus INTERNET: Heights, Sprinklers, Heated, Buss Duct, and Residential Sub 502-315-6975, or on a specific current activity, rather www.crainsdetroit.com/section/classifieds Air Lines. 248-496-3405 Macomb Township [email protected] . than career accomplishment over 145 acres. $16M invested. Responses can be mailed to: an extended period of time. Visit See U.S. Army Corps of Engineers, Louisville Call or email today for information Asking $1,650,000 www.crainsdetroit.com/nominate Crainsdetroit.com/Section/Classifieds on a custom advertising plan! District, ATTN: CELRL-RE-M/Rahn, for the online nomination form. The for more classified advertisements [email protected] Bill McMachen, [email protected] P.O. Box 59, Louisville, KY 40201-0059. deadline is June 7. 313.446.6068 586-915-4441 Lee & Associates Applications required by May 28, 2010 20100517-NEWS--0034-NAT-CCI-CD_-- 5/14/2010 5:48 PM Page 1
Page 34 CRAIN’S DETROIT BUSINESS May 17, 2010
Where can you go for an Andiamo Michigan near top in Great Lakes quality lunch priced under $10? on entrepreneurial scorecard BY NANCY KAFFER Entrepreneurial change, or The scorecard also noted that Spinach & Cheese Ravioli CRAIN’S DETROIT BUSINESS the amount of entrepreneurial the concept of “economic garden- growth or decline in an economy ing,” which encourages govern- Michigan’s entrepreneurial cli- ment and business support enti- Portabella Mushroom “Burger” over the recent three years. mate is improving, according to Entrepreneurial vitality, or ties to provide assistance to the results of the Small Business As- the level of entrepreneurial activi- existing businesses rather than Italian Sausage Ragu sociation of Michigan’s sixth annual ty and pace and robustness of en- working to attract new businesses entrepreneurial trepreneurial activity. from out of state, is on the rise in scorecard. Entrepreneurial climate, or Michigan. Chicken & Wild Berry Salad But the state WEB EXTRA the capability of an economy to Michigan ranked 23rd in the na- still has work to Results: See the foster entrepreneurship. tion for commercial and industrial Roasted Vegetable Ravioli do. entire list, Michigan ranks 45th nationally, lending in 2008, and fifth in 2007 Michigan is crainsdetroit a drop from 2007 when the state for private lending to small busi- outperforming .com/scorecard ranked 43rd, and 2005 when it ness, with $56,484 lent per 1,000 Chicken & Pesto Pasta most of the oth- ranked 31st. small firms. er Great Lakes states, the score- In entrepreneurial sensitivity, But the state ranked last in the Chicken & Spring Vegetable Risotto card found. which combines a variety of met- Midwest for general business But in 2008 data, the second- rics that indicate an uptick or growth. stage sector — fast-growing com- downtick in entrepreneurialism, SBAM uses the entrepreneurial Andiamo Chopped Salad panies with $1 million to $50 mil- Michigan ranked 22nd in the na- scorecard to develop an entrepre- lion in revenue, seen as a key tion, and second in the Midwest, neurial policy agenda, which the Antipasti Style Salad growth segment by many — is lag- behind Kentucky. organization presents to lawmak- ging. Michigan fared poorly in the ers in Lansing, along with the And the state ranks poorly in creation of new small businesses scorecard, to build support for pro- Pan Seared Beef Tenderloin Tips what the scorecard calls “entrepre- in 2006 data, ranking 47th in the business policies. neurial dynamism,” a combina- nation and last in terms of small Nancy Kaffer: (313) 446-0412, tion of three factors: business payroll growth. [email protected]
Spring Arbor, churches Andiamo! The answer is a no-brainer with the Columbia: Real estate “Perfect 10” menu—10 Lunch Entrées Under $10. to offer business (Available Monday – Friday until 4pm at all locations) deal seen as hopeful sign training in Detroit Spring Arbor University is andiamoitalia.com ■ From Page 3 working with Detroit churches to provide entrepreneurial as the 2007 average. training and support to small The sale could create momen- OTHER BIG DEALS businesses in local neighbor- tum for the future, said Jonathan At $62 million, or $120 per square hoods. Dwoskin, regional manager of the foot, the sale of Columbia Center The Spring Arbor-based uni- Our Happy Hour Southfield office of Marcus & Mil- towers in Troy represents the versity’s Hosmer Center for En- lichap Real Estate Investment Ser- largest sale of a single building trepreneurship and Research and vices, a firm that specializes in in- complex since 2007 based on Urban Ministries Inc. held an ini- IS CHEAPER THAN THERAPY! vestment sale transactions. value and price per square foot. tial meeting with approximate- “This is another indicator that Last time a deal was bigger on ly 15 Detroit clergy. we are in a transitioning market dollar value: First Center Office Other steps include: review- and that we’re making our way Plaza, Southfield, was sold for ing Spring Arbor’s curriculum MONDAY-FRIDAY | 3-6PM $66 million in December 2007 to back as there is more clarity in the New York-based Sovereign Group. and materials, having a com- market,” he said. “This will build mittee of ministers and SAU AVAILABLE AT ALL 11 LOCATIONS Last time a deal was bigger on momentum, which will generate per-square-foot value: National City faculty plan different compo- more deals.” Building, Royal Oak, was sold in nents of the project, and identi- But, he cautioned, the market September 2008 by National City fying new sources of micro- $5 SIGNATURE MARTINIS has a long way to go and there will Bank to Howard & Howard Attorneys funding. $5 SIGNATURE WINES still be all-cash building sales and P.C. for $137 per square foot. The program would start deals financed by the seller. Source: Crain’s research with six churches as test sites, $5 SIGNATURE APPETIZERS “Being realistic, this kind of three on Detroit’s east side and deal won’t happen every day, only $77 million for Four New York three on the west. for premiere properties,” Dwoskin Plaza in Manhattan. — Nancy Kaffer said. $28.7 million for Bank of The Columbia Center complex is America Plaza in St. Louis. regarded as one of the best office $41.5 million for Keystone locations in Southeast Michigan, Summit, an office park in Warren- commanding one of the highest dale, Pa. Pontiac bond rental rates at $26 per square foot, By comparison, the publication said Matt Farrell, executive princi- reported $223 billion in CMBS ratings upgraded pal with Royal Oak-based Core Part- loans issued in 2007. The city of Pontiac received ners L.L.C. The CMBS market has been vir- three upgraded bond ratings “They have been walking a tually dry for two years as fragile from New York-based Fitch Rat- tightrope with a higher rental rate financial institutions have ings Ltd. Fitch upgraded and strong occupancy,” Farrell watched real estate values decline $5.9 million in water and sewer said. “They haven’t made a lot of and as a result have been unwill- debt from B- to B, while $8 mil- rent concessions, and they’ve ing to put such lending packages lion of general obligation spent a lot of money on improve- together, said Larry McLaughlin, bonds were upgraded from a ments to keep it as a high-quality chairman of the real estate depart- CCC junk rating to B, as were complex.” ment for Detroit-based Honigman $29 million worth of tax incre- The $62 million deal is financed Miller Schwartz and Cohn L.L.P. ment finance authority bonds. with $42 million in a CMBS loan. “We are just now starting to see The ratings agency credits So far this year, there have been some of it come back, but not sur- some reforms by Pontiac three other CMBS deals, according prisingly, the deals are few and Emergency Financial Manager to Evan Grauer, database manager far between and based on very Fred Leeb for the improve- andiamoitalia.com for Commercial Mortgage Alert, an conservative underwriting,” he ment, and upgraded the bond industry publication that tracks said. outlook from negative to sta- such loans nationally. They in- Daniel Duggan: (313) 446-0414, ble. clude: [email protected] — Chad Halcom 20100517-NEWS--0035-NAT-CCI-CD_-- 5/14/2010 5:36 PM Page 1
May 17, 2010 CRAIN’S DETROIT BUSINESS Page 35 UM: $200M drive to fund recruiting, research at ex-Pfizer site ■ From Page 1 Transfer, its Business Engagement Center “But with this accelerator facility, our sup- search center will make it easier to recruit and its recently formed Michigan Venture port will extend even further.” top researchers. Center to the NCRC from leased space. She Pescovitz told the gathering at the Growth “You can almost feel the sparks flying,” would also like to recruit the annual Growth Capital Symposium that the complex will Pescovitz said. Capital Symposium, hosted by UM’s Stephen provide research facilities not just for uni- Pescovitz’s comments Tuesday followed M. Ross School of Business, in 2012 from its versity scientists but for government and UM’s announcement Monday that about 20 current home at the Marriott at Eagle Crest. private-sector scientists as part of the uni- proposals developed by UM faculty for inter- The Business Engagement Center match- versity mission to create jobs through part- disciplinary research to be conducted at the es private-sector businesses with university nerships and collaboration with the private NCRC had been whittled down to four. A technology and a wide range of business ser- sector. university review team, led by Steven vices. The Michigan Venture Center assists “We have the opportunity for the first Kunkel, senior associate dean for research, entrepreneurs working to spin off compa- The University of Michigan plans to recruit new time to have technology users working is now assessing the proposals for feasibility nies based on technologies developed at UM. faculty researchers, finance new research and alongside technology inventors. All that and developing a timeline to deploy re- Ken Nisbet, executive director of UM’s tech- reopen shuttered lab space at the former Pfizer mixing it up will lead to an acceleration of searchers into currently shuttered labs in nology transfer office, said the intent is for Inc. R&D center it bought last summer for about discovery and creativity. It’s a revolution the NCRC. the NCRC to be the central hub for all of the $108 million. we’re talking about, exponential instead of Joan Keiser, interim managing director university’s private sector, technology incremental,” she told the crowd. “We’ll no of the NCRC, said the feasibility assess- transfer, spin-off and venture activities. He the NCRC as an opportunity to expand and longer have academic silos. For the state of ments for the four research proposals will said he hopes to complete the transition of enhance our venture center.” Michigan, the results will be dramatic.” be conducted over the next six to eight the venture center into the NCRC within a The proposed accelerator would expand Thursday, she followed up on her panel weeks, based in part on the potential to year. If successful, the upshot is a potential the school’s relationship with the venture presentation by telling Crain’s that combin- translate the research into commercial or 20 percent to 30 percent increase in the num- community by housing entrepreneurs, ven- ing the users and developers of technologies clinical uses, Keiser said. ber of companies created at the university ture capitalists, angel investors, UM men- in a single facility with everyone working Keiser declined to discuss specifics of the every year. tors-in-residence and others involved with together is a driving force in the develop- proposals, but she said the subjects include Preliminary plans are to secure about the creation of startups based on technolo- ment of the NCRC. medical products, energy sustainability and 10,000 square feet within the former Pfizer gies developed at the university, Nisbet “In our vision of NCRC, the person who research that could lead to software innova- facility to expand the footprint and services said. utilizes the technology will be working side tions, among other topics. of the Michigan Venture Center to include a Expanding the venture center could also by side with the person who is developing Locating these first four research projects larger-scale business accelerator, Nisbet allow the tech transfer office to expand its the technology,” she said. “You can see how in the NCRC could result in a 30 percent to said. services into later stages of company devel- that should result in more rapid develop- 40 percent occupancy of the NCRC’s wet lab “We were doing really well with launch- opment, enhancing the quality of university ment of the technology because the user is space in two to three years, she said. ing companies as part of our tech transfer spinoffs, Nisbet said. going to be informing the developer more Ryan Beene: (313) 446-0315, mission, and we’re well within the top 10 “Traditionally, once we get close to the op- rapidly than in any other setting.” [email protected] (universities producing tech-based spin- tion and license stage, we’re normally try- Pescovitz said she hoped the increased ac- Tom Henderson: (313) 446-0337, thender- offs), but we looked how we can do more at ing to get outsiders to do more,” he said. tivity over the coming months at the re- [email protected]
Royal Oak: State law may not back city oversight of DDA ■ From Page 1 trust in many of the members ap- … In fact, ultimately the city bene- recent meeting minutes into the noticed public hearing.” streetscape improvements, down- pointed to serve on our other fits from the in- consent agenda items for the com- “But there have been some town streetlights, gutters and boards,” said Commissioner creased valua- mission meeting,” he said. amendments, most recently in 2008, drainage systems and other im- James Rasor, one of two dissenting tion my “That (commission approval) that seem to cast some doubt on that provements he must complete at voters to the policy change. “I find development would then be rolled into the com- ruling,” he said. “I’m not sure that the site to meet the city’s require- that unfortunate, because I think brings to the mission’s decision to approve the this (court) case actually survives ments. it’s a direct slap in the face to our property.” consent agenda. And any commis- these amendments in the law.” The Michigan Economic Growth Au- hard-working volunteers.” The $300,000 sioner can pull that or any other Andy Schor, assistant director thority board meets Tuesday but is Thomas McGraw, founder and will be an offset item out of the consent agenda of state affairs at the Michigan Mu- not expected to have the Emagine president of municipal govern- against future first if they might want to talk fur- nicipal League, said DDA oversight proposal on the agenda, said Brid- ment defense law firm McGraw Mor- taxes the DDA ther about it.” practices seem to vary among the get Beckman, public information of- ris P.C. in Troy, said the new policy collects on the But the city also convened a League’s member communities ficer for the Michigan Economic Devel- could prove more than unfortu- theater site, as Glantz joint meeting Thursday with three across the state. opment Corp. nate if a city makes an oversight part of its tax increment finance appointees of the commission and “There are communities that ex- Glantz said the commission is change without a state statute or authority district collection on DDA to discuss the amendment ercise tighter controls over their expected to review a parking legal precedent to back it up. commercial property downtown. It further. DDAs than some others,” he said. agreement drafted between his at- “There’s nothing in the (state) does not come out of the city’s own The DDA, which collects a 1.67 “I don’t know of any who turn it torney, Jeff Kravitz of Bloomfield statute pertain- property tax revenue, although the mill levy on commercial proper- completely into a recommending Hills-based Jeffrey R. Kravitz P.L.L.C., ing to downtown DDA shoulders more than $1 mil- ties and also a tax-increment fi- body, but there are cities that take and Royal Oak City Attorney development au- lion per year in construction bond nance authority tax capture on actions like rejecting the DDA’s David Gillam. thorities that debt for the city. property in the downtown district, yearly budget and ordering it to re- If all that gets approved, along would give a city Commission member Terry uses some of that revenue to make submit one, or take specific con- with the MEGA incentives and authority to do Drinkwine, who voted with the debt service payments on a city- trol over a certain policy issue.” building plan, he expects to close this. What a majority for the code amendment, owned parking structure and a Glantz, whose company also has on the purchase of the property by DDA has author- said he was concerned about prop- construction bond for the city’s developed three Emagine theaters June 30 and hopes to open in late ity to do is specif- er measures to rein in the DDA’s courthouse, as well as contribut- in Novi, Woodhaven and Canton March or early April 2011. ically defined by authority after seeing how the ing to police department funding Township as well as a Cinema Hol- Johnson noted that the commis- statute,” he said. Emagine credit was approved. for downtown patrol units. lywood theater in Birch Run, said sion considered extending its over- McGraw “Nowhere in “There wasn’t a lot of notice on But the DDA also has a separate the Royal Oak plan calls for 10 sight of DDA once before, about the statue is there anything that this. I only found out the authority charter purpose under state law. screens and seating capacity of two years ago, but dropped the says the city can override that. In was even considering this mea- Prior case law is unclear on 1,700, plus a 16-lane bowling alley matter. Rasor said the commission fact, the DDA law says the authority sure at a meeting two hours before whether a city or township can geared to family bowling but with “didn’t say boo” when the DDA is a ‘separate body corporate.’ It has they had decided on it,” he said. convert its DDA to a recommend- some limited event hosting. He awarded a very similar $900,000 its own power to sue and be sued.” “This city is facing a budget ing body with no decision-making also has approval for a liquor li- credit to the developer of the new The commission voted 5-2 last shortfall and the DDA contributes power of its own, said Michael Bo- cense for a bar and restaurant in- L.A. Fitness health club at the cor- month to amend language of the to the budget by making payments gren, governmental law practice cluded in the plan. ner of Woodward and Washington downtown development authority on bond debt for us. That’s why I group leader at Bloomfield Hills- He said he sought the $300,000 avenues. portion of its city code, to ensure support putting another check and based Plunkett Cooney P.C. inducement from the DDA because “I fully expect someone to still that the DDA’s “exercise of its balance in place, when decisions Bogren cites a Michigan Court his building plan faces two prereq- try and undo the DDA’s prior ac- powers is subject to the approval like this get made that can affect of Appeals ruling from 2002 in a uisites to apply for state tax incen- tion (on Emagine), which I don’t of the City Commission.” (the city).” dispute between Downriver Develop- tives. One was to seek certification understand,” he said. “That pro- Emagine founder and President Royal Oak City Manager Don ment L.L.C. and the city of Trenton under Leadership in Energy and ject happening is construction Paul Glantz noted that the credit Johnson said the city begins im- and its DDA in which the court Environmental Design standards jobs, it’s jobs for our community, comes out of funds that belong to plementing the new policy at noted at least some DDA actions, for green building, and the other it’s locally bought goods and ser- the DDA. tonight’s commission meeting. such as a development plan recom- was a “show of support from the lo- vices to fund that development and “So literally nothing we’re doing “My current interpretation in mendation, are “expressly subject cal community.” it’s important that it get built.” in this plan takes property tax implementing that ordinance to the (municipal) governing The credit, he said, helps offset Chad Halcom: (313) 446-6796, (revenue) away from the city itself. would be to submit the DDA’s most body’s approval after a properly more than $800,000 in various [email protected] 20100517-NEWS--0036-NAT-CCI-CD_-- 5/14/2010 5:38 PM Page 1
Page 36 CRAIN’S DETROIT BUSINESS May 17, 2010 McCann: Agency adds jobs, accounts ■ From Page 1
approach have sparked the hiring. UPCOMING PARTNER EVENTS Many of the new jobs are with Mc- Cann’s internal digital marketing Agency looks beyond criticism of ads Crain’s partners with a variety of organizations on unit, MRM Worldwide, said Garry Neel, the office’s president and CEO. events and special subscription offers for their “A big part of our business is of GM boasting about repaid loans members. Please visit their Web sites below. digital,” said Neel, who is also GM Like its local automotive ad- government’s nearly 61 percent global director for McCann World- vertising agency competitors, the equity stake in GM nor Canada’s group. He’s worked at the local of- Birmingham office of McCann nearly 8 percent ownership. fice for a decade. Worldgroup has popped up amid The Washington-based advoca- The Michigan Society of Association Executives Most of the hiring stems from bad press. cy group Competitive Enterprise In- Featuring The New Strategy for Cobo’s Future GM’s cost-cutting decision last Fortunately for the agency, it’s stitute filed a complaint last week not in critics’ crosshairs. That with the Federal Trade Commission SPEAKERS: Larry Alexander, Chairman,Regional year to shift its digital production falls to client General Motors Co. that accuses GM of deceptive ad- Convention Facility Authority; Walter Watkins, Interim duties to MRM from Digitas-owned Prodigious Worldwide. There is also McCann, which does GM’s cor- vertising. CEO, Detroit Regional Convention Center new parallel hiring at MRM’s Ar- porate marketing, was the Even former U.S. auto czar May 19 • Program: 9:30 a.m. – Noon gentina office for the GM work, agency that created the campaign Steve Rattner last week said the Lunch: Noon – 1 p.m. which includes creation of 50 new in which the automaker’s CEO, campaign “slightly elasticized Doubletree Guest Suites Fort Shelby/Det. Downtown websites for GM brands in Europe, Ed Whitacre, tells the world that the reality of things” in com- Visit www.msae.org for information and to register. South Africa and the Middle East the company has “repaid our gov- ments to reporters in Lansing. this year. ernment loan in full, with inter- Garry Neel, president and CEO The five-year deal is worth est, five years ahead of the origi- of the local McCann office, de- 2010 Ethics Conference. $100 million in billings, according nal schedule.” clined to talk about the advertise- SPEAKERS: Kym Worthy, Wayne County Prosecutor to Advertising Age. Critics say that’s misleading ments, but did point out that GM Diane Dossin, Chief Tax Officer, Ford Motor Co. It’s believed the agency switch re- because the carmaker paid its has been targeted in the past by Dianne Shovely, Vice President, Fraud Services, sulted in less than a dozen Digitas $6.7 billion U.S. government loan critics over advertising such as Comerica Bank layoffs between Detroit and Boston. from the Troubled Assets Relief the post-Sept. 11 “Keep America May 19, 2010 • 7:30 – 11:30 a.m. To bolster the diversification and Program (and its $1.4 billion loan Rolling” campaign. Walsh College Novi Campus, 41500 Gardenbrook Rd. expansion, McCann last week hired from Canada) with other govern- “It’s over with. We’re on to the ment bailout money. The adver- next thing,” he said. $40 Alumni and partners, $25 Students, Barbara Yolles as its chief market- tisements didn’t address the U.S. — Bill Shea $50 All others. Register at https://www-secure. ing officer. Yolles, who will start on May 25, was with Doner in South- walshcollege.edu/BLIForms/corpevents.aspx field for six ed to increase this year as it rolls McCann Worldgroup’s most re- Women Entrepreneurs and Policy: Meet the years before tak- out six new vehicle campaigns. cent revenue reported by Advertis- Candidates. ing an executive The upswing is a change for Mc- ing Age this year was $530 billion May 20, 2010 • 8:30 – 11 a.m. vice president Cann, which took its lumps in the globally. It’s believed that the local Walsh College Novi Campus, 41500 Gardenbrook Rd. job at New York agency shakeups of the past few office accounted for about $50 mil- City-based Kir- $15 Alumni and partners; $15 Students; years. lion last year, and that’s up about shenbaum Bond It lost the $122 million Buick ac- 20 percent from the year before. $25 All others. Register at https://www-secure. Senecal & Part- count in 2006 after 50 years to rival The office became known as Mc- walshcollege.edu/BLIForms/corpevents.aspx ners. agency Leo Burnett in Troy and Cann Midwest this year, and it in- McCann al- Chicago, and was eliminated in No- cludes McCann Erickson, the ad- Marketing & Sales Executives of Detroit Dinner Yolles ready picked up vember as a candidate for the vertising agency; MRM Worldwide Meeting new accounts in $270 million Cadillac account that (digital); Momentum (experiential recent months: Batavia, Ill.-based marketing); and We- Entrepreneurial Panel – “Passion to Succeed: How went to the New York discount grocery giant Aldi Inc. and office of British cre- ber Shandwick (public to Start, Keep Going & Thrive in Today’s Market” The Colonial Williamsburg ative agency Bartle relations). MODERATOR: Carol Cain, Producer & Host, “Michigan Foundation. It also has Travel Michi- Bogle Hegarty. GM When you’re “We’ve kind of tak- Matters”,WWJ-TV & Detroit Free Press Columnist; gan’s “Pure Michigan” work. briefly moved its cor- “ en that on as our re- PANELISTS: Bob Fish,CEO & Co-founder, Biggby “That new business for us has porate ad account to based in Detroit, gional hub,” Neel Coffee; Jason Lambiris, CEO, Apex Digital Solutions, Inc.; been what’s helped us thrive,” he Los Angeles-based new business said, noting that the Bob McDonald, President, Modernistic Carpet Cleaning said. “We want to ratchet it up to Deutsch in 2007 but office is the only Mc- May 25 • 5pm – 8:30pm the next level.” gave it back to Mc- doesn’t find you, Cann location be- The Management Education Center, That includes pursuing work in Cann two years ago. tween New York City 811 W. Square Lake Rd., Troy, MI 48098 nonautomotive categories such as “We’ve gone you have to go and Salt Lake City. MSED Members: $45 • Non-Members: $60 big-box retail, financial services through a time patch The local office Register at www.msedetroit.org. and health care, but being in a city with our clients in chase it. will serve to target whose advertising industry is so Call (248) 643-6590 with questions. terms of their busi- ” Midwest-based closely linked to the automakers is ness,” Neel said. Garry Neel, MRM Worldwide clients as appropri- a challenge. Industry watchers ate, Neel said. A new Health Care Strategies Summit Luncheon “We’re fiercely proud of being in say the agency has weathered the website will be rolled out this year, MODERATOR: Anna Maiuri, Miller Canfield Detroit,” Neel said. “When you’re auto industry maelstrom well. but the company logo won’t change. PANELISTS: Tom Brisse, Senior Vice President and based in Detroit, new business “(McCann) hasn’t been tainted by “We haven’t made a splashy an- Hospital Director, William Beaumont Hospital Troy; doesn’t find you, you have to go being associated with GM,” said Pe- nouncement,” he said. Two of Mc- chase it.” Earlexia Norwood, MD - Physician-in-Charge, Henry ter DeLorenzo, a former automotive Cann’s largest local rival agencies, While looking to add more advertising executive who now is Campbell-Ewald and Doner, both Ford Medical Center-Troy & Northern Region Division nonautomotive clients to shield it- publisher of the autoextremist.com have launched new agency brand- Head of Family Medicine, Henry Ford Health System; self from the industry’s woes, Mc- industry blog. ing efforts to coincide with top ex- and Scott Foster, President, Wellco Cann will continue to seek more “They basically got the shaft ecutive transitions. May 26 • 11 a.m. –1 p.m. GM work, Neel said. when Buick was summarily re- McCann’s Birmingham office, Management Education Center, 811 W. Square Lake “That always remains our first moved from them for no reason which is an old Jacobson’s building Rd., Troy priority,” he said. whatsoever, in my estimation. It that it moved into in 2003 after 25 $27 Troy Chamber members/$37 Non-members McCann handles Chevy and remains to be seen if they can get years in Troy, carries the McCann Register at 248-641-8151, [email protected] Cadillac in 60 countries that in- back what they lost.” Worldgroup nameplate mounted or www.troychamber.com clude lucrative emerging markets A rival ad firm assessed Mc- outside. That’s the advertising such as China, India and Latin Cann as the least troubled of Gen- holding company parent of all the America. It also handles GM’s cor- eral Motors’ marketing agencies. agencies inside the office, which in 5 Keys to Successful Financial Planning for Small TM porate work and retail advertis- “Of all the GM shops locally, they turn is owned by an even larger Business: A workshop to help the non-fi nancial ing, such as employee discounts, seem to be pretty well positioned,” global advertising mega-holding business owner achieve “Fiscal Fitness” along with Sirius XM satellite radio said George Rogers, president and company, New York City-based In-
TM For owners and CEOs of businesses who want a and Saab, which is believed to be CEO of Team Detroit, the Dearborn- terpublic Group of Cos. better understanding of how to use their financial worth about $55.5 million. based consortium of WPP Group ad With the new hires, space is at a statements to make better business decisions. Also helping fuel McCann’s shops that work together mainly on premium in McCann’s office — a June 9 – Oakland County Business Center growth is GM’s increased post- Ford Motor Co. and have 50 positions departure from what many agen- June 23 – TechTown Detroit bankruptcy advertising spending to fill among about 1,200 employees. cies are going through. Details: Go to www.misbtdc/region9 or call that has included the “May the Best Rogers did warn that things re- “We’re pretty much at capacity Paul Nucci at 734-487-0902 Car Win” corporate campaign that main unclear for GM’s advertising here now,” Neel said. “We’ve got involves most of the automaker’s agencies. “The merry-go-round more people than the space was de- brands. The automaker spent agency shuffle hasn’t shopped. I signed for.” Visit crainsdetroit.com/events for information on Crain’s 2010 events $3.6 billion worldwide last year on don’t think anything is solid on the Bill Shea: (313) 446-1626, advertising, a number that’s expect- GM side.” [email protected] 20100517-NEWS--0037-NAT-CCI-CD_-- 5/14/2010 5:37 PM Page 1
May 17, 2010 CRAIN’S DETROIT BUSINESS Page 37 CMS Energy: Utility pushes new plant as sales rise www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ From Page 3 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] Consumers Energy’s plans for cluding financing, Consumers En- law” in the areas of energy effi- meters remotely. EXECUTIVE EDITOR Cindy Goodaker, (313) 446- the plant have drawn fire from the ergy’s share is expected to be ciency and renewable energy, and Joos said the new “smart me- 0460 or [email protected] MANAGING EDITOR Andy Chapelle, (313) 446- Sierra Club and the Natural Re- $2 billion-plus. “it doesn’t go far enough.” ters” in homes and businesses will 0402 or [email protected] sources Defense Council, which in The new plant is expected to have Also ahead for Consumers in communicate data frequently and ASSISTANT MANAGING EDITOR/FOCUS Jennette Smith, (313) 446-1622 or [email protected] March filed in Ingham County Circuit emissions that are 10 percent to 2010 are continuing drives toward benefit both the utility and cus- ENTREPRENEURSHIP EDITOR Michelle Darwish, Court an appeal of a state-granted 15 percent lower than from existing energy efficiency — an area in tomers. For example, it will enable (313) 446-1621 or [email protected] COPY DESK CHIEF Gary Piatek, (313) 446-0357 air permit for the plant. plants. It will also be designed to which the utility exceeded initial- Consumers to “be more efficient or [email protected] The action against the Michigan use carbon capture and storage year state-required savings — and and effective in outage restora- ASSISTANT NEWS EDITOR Jeff Johnston, (313) 446-1608 or [email protected] Department of Natural Resources and technology once the technology be- renewables. tion,” he said. DATA EDITOR Anne Marks, (313) 446-0418 or Environment argues in part that the comes commercially feasible. Consumer Energy has signed con- At this Friday’s CMS annual [email protected] WEB EDITOR Christine Lasek, (313) 446-0473, department failed to set emissions The utility plans to retire five tracts to buy 9.4 megawatts of capac- shareholders meeting, Joos will [email protected] levels in the permit that reflect older coal-fired plants following ity from small renewable projects step down from his current post WEB DEVELOPER Steve Williams, (313) 446- 6059, [email protected] cleaner fuels, that the department the operation of the new plant, and and expects to sign contracts later and become chairman of the EDITORIAL SUPPORT Robertta Reiff (313) 446- improperly rejected alternatives two additional units depending on this year for some 250 megawatts of board, replacing CMS Chairman 0419, YahNica Crawford, (313) 446-0329 NEWSROOM (313) 446-0329, FAX (313) 446- like energy efficiency and renew- customer need. capacity from the first round of Ken Whipple, who has reached the 1687 TIP LINE (313) 446-6766 ables, and that it didn’t do enough Consumers has said that building large-scale renewable projects. company board’s mandatory re- REPORTERS to limit harmful pollution. the new plant and retiring some of To meet a state requirement that tirement age of 75. Ryan Beene: Covers auto suppliers, steel, higher The two groups also commis- its older units will lead to an overall 10 percent of its electricity come John Russell, education and Livingston and Washtenaw counties. (313) 446-0315 or [email protected] sioned a study that cites what it drop in fleetwide emissions. from renewable sources by 2015, president and Daniel Duggan: Covers retail, real estate and calls significant rate increases as a The investment is part of the util- Consumers plans to contract with COO of Con- hospitality. (313) 446-0414 or result of the plant’s construction, ity’s 20-year energy plan to meet fu- third-party providers for 450 sumers Energy [email protected] Jay Greene: Covers health care, insurance and the fuel costs, future federal regula- ture electricity needs through megawatts of energy and spend since 2004, will environment. (313) 446-0325 or tions and other factors. means that include the new plant, about $1.3 billion building wind succeed Joos. [email protected]. Chad Halcom: Covers law, non-automotive “Our main concern is that it’s increased use of renewable energy, farms that will produce another Russell joined manufacturing, defense contracting and Oakland dirty, it’s polluting, it’s unneces- greater energy efficiency and con- 450 megawatts. the utility in and Macomb counties. (313) 446-6796 or [email protected]. sary and it’s expensive,” said trolling electricity demand. It has secured easements for 1981 and was Tom Henderson: Covers banking, finance, Tiffany Hartung, associate region- Joos said the plant needs to be about 60,000 acres of wind farm de- elected a compa- technology and biotechnology. (313) 446-0337 or al representative for the Sierra looked at beyond the initial capital velopment in northwest Michigan’s ny officer in [email protected]. Russell Nancy Kaffer: Covers small business, the city of Club’s Michigan chapter. costs and as a producer of lower- Mason County and in the Thumb 1999. Detroit, Wayne County government. (313) 446- Of the plant’s 930-megawatt ca- cost power in the future and a area’s Tuscola and Huron counties. Joos said there will be a “very 0412 or [email protected]. Bill Shea: Covers media, advertising and pacity, 100 megawatts will be con- more reliable supply than some Overall, from 2010 to 2014, the smooth transition” and that while marketing, entertainment, the business of sports, sumed running the plant. other types of investments, like utility plans some $7.2 billion in leadership is changing, the compa- and transportation. (313) 446-1626 or [email protected]. Consumers expects to own 500 wind power. capital expenditures, including ny’s direction is not. Nathan Skid: Multimedia reporter. Also covers the megawatts of the plant, and munic- He said that in assessing Michi- maintenance and environmental “Our whole message here is, don’t food industry. (313) 446-1654, [email protected]. ipalities and other entities would gan’s needs, “we think that means a upgrades, renewables, the coal look for things to change. Look for Sherri Begin Welch: Covers nonprofits and services. (313) 446-1694 or [email protected] own 330 megawatts. balance of all these technologies.” plant and a project that entails de- them to stay the same,” he said. LANSING BUREAU Out of a total plant cost that by Hartung, however, said the com- ploying advanced meters and com- Amy Lane: (517) 371-5355, Amy Lane: Covers business issues at the Capitol, telecommunications and utilities. (517) 371- one estimate tops $3.5 billion, in- pany “is doing what is required by munications technology to read [email protected] 5355, FAX (517) 371-2492, [email protected]. or 115 W. Allegan, Suite 220, Lansing 48933. ADVERTISING
ADVERTISING DIRECTOR Marla Downs, (313) 446-6032 or [email protected] SALES INQUIRIES: (313) 446-6052; FAX (313) Land use: Keep process open, mayor advised 393-0997 ADVERTISING SALES Jeff Anderson, Matthew J. ■ Langan, Lori Tournay Liggett, Tamara Rokowski, From Page 3 Kimberly Ronan, Cheryl Rothe, Dale Smolinski CLASSIFIED SALES (313)-446-0351 “The words you use are very im- have been chosen, Winters said. MARKETING MANAGER Irma Clark portant,” said Heidi Mucherie, di- AT THE TABLE Kresge Communications Direc- MULTIMEDIA MANAGER Alan Baker, (313) 446- rector of the Detroit-based nonprof- tor Cynthia Shaw wrote in an e- 0416 or [email protected] Attendees of Detroit Mayor Dave Bing’s land use summit: EVENTS MANAGER Nicole LaPointe it Community Legal Resources. mail to Crain’s that costs for the Ⅲ Marcell Todd, director, City Planning Commission MARKETING ARTIST Sylvia Kolaski “There’s a lot of pushback on ‘down- consultants haven’t yet been final- SALES SUPPORT Suzanne Janik, YahNica Crawford Ⅲ Eugene Jones, executive director, Detroit Housing Commission sizing’ or ‘shrinking,’ and some peo- ized, saying Kresge hopes the costs CIRCULATION Candice Yopp, Manager. Ⅲ Anita Lane, project manager, Community Development Advocates of Detroit MARKETING COORDINATOR Kim Winkler ple are embracing words like ‘re-en- ultimately will be paid in concert Ⅲ Steve Ogden, executive director, Next Detroit Neighborhood Initiative PRODUCTION MANAGER Wendy Kobylarz visioning’ or ‘revisioning.’ There with other foundations through a PRODUCTION SUPERVISOR Larry Williams, Ⅲ Linda Smith, executive director, U-SNAP BAC Inc. (313) 446-0450 are some people who said look, grant to a nonprofit organization. Ⅲ Tom Goddeeris, executive director, Grandmont Rosedale Development Corp. don’t give this a fancy word, this is Openness and transparency are CUSTOMER SERVICE Ⅲ Heidi Mucherie, executive director, Community Legal Resources planning, so call it planning.” key, Bing said. Ⅲ Aundra Wallace, member, Detroit Land Bank Authority MAIN NUMBER: Call (888) 909-9111 or write Mucherie told Bing and his team “I think people feel like this [email protected] Ⅲ Burney Johnson, deputy director, Michigan State Housing and SUBSCRIPTIONS $59 one year, $98 two years. that she observed two pervasive group in particular is a secret Out of state, $79 one year, $138 for two years. Development Authority fears at a recent meeting held by agent for this administration, that Outside U.S.A., add $48 per year to out-of-state Ⅲ Kathleen Lomako, deputy director, Southeast Michigan Council of rate for surface mail. Call (313) 446-0450 or her group. we’re going to come out with this (888) 909-9111. Governments SINGLE COPIES: (888) 909-9111. “(Detroiters) felt strongly that Ⅲ William Hunter, analyst, Data Driven Detroit plan and keep it close to our chest REPRINTS: (800) 290-5460, ext. 125; (717) 399- residents should lead the way, that and nobody’s going to know about 1900, ext. 125; or ashley.zander@theygsgroup Ⅲ Ann Lang, CEO, Downtown Detroit Partnership .com. the process should not be led by ‘out- Ⅲ it — won’t work,” he said. “We’ve TO FIND A DATE A STORY WAS PUBLISHED: Faye Nelson, president and CEO, Detroit Riverfront Conservancy (313) 446-0367 or e-mail [email protected]. siders’ — and that could mean phil- Ⅲ Don Edwards, founder, principal and CEO, Justice and Sustainability got to be transparent, and we’ve anthropy, it could be consultants,” Associates, Washington, D.C. got to be inclusive.” CRAIN’S DETROIT BUSINESS IS PUBLISHED BY she said. “The other fear is the fear Linda Smith, executive director CRAIN COMMUNICATIONS INC. Ⅲ Jessica Green, of the Detroit Collaborative Design Center, University of CHAIRMAN Keith E. Crain of land-grabbing and the fear of be- Detroit Mercy of U-SNAP-BAC Inc., urged the city PRESIDENT Rance Crain ing involuntarily displaced.” Ⅲ Charles Cross, research and design fellow, Detroit Collaborative Design officials to develop a positive SECRETARY Merrilee Crain Some concerns aren’t entirely Center, University of Detroit Mercy branding message. TREASURER Mary Kay Crain Executive Vice President/Operations unfounded. While the city doesn’t “What’s the tag?” she said. William A. Morrow want to involuntarily relocate res- are going to grab all the land.” be led by Marja Winters, deputy di- “Something you can put on buses, Group Vice President/Technology, Manufacturing, Circulation idents, said Karen Dumas, Bing’s Mucherie also urged city offi- rector of the city’s Planning and De- something you can put on bill- Robert C. Adams Vice President/Production & Manufacturing group executive for communica- cials to approach the community velopment Department, and Toni boards. People have to get excited. Dave Kamis tions, “Nothing’s off the table.” without preconceived notions. Griffin, the nationally recognized Detroiters haven’t been excited in Chief Information Officer Business jargon like “rightsiz- Some Detroiters, she said, are put urban planner whose salary is paid a long time and it makes them neg- Paul Dalpiaz Corporate Circulation/Audience Development ing” or “downsizing” doesn’t calm off by the idea of creating density. by Troy-based Kresge. ative.” Director fears, said Tom Goddeeris, execu- “They don’t want to live in a Kresge will also foot the bill for a Developing a formal method for Kathy Henry G.D. Crain Jr. Founder (1885-1973) tive director of the Grandmont dense neighborhood,” she said. team of technical advisers to work citizen input is crucial, said Anita Mrs. G.D. Crain Jr. Chairman (1911-1996) Rosedale Development Corp. “We heard from other citizens that on the plan and a community en- Lane, project manager at Communi- EDITORIAL & BUSINESS OFFICES: 1155 Gratiot Ave., Detroit MI 48207-2732; (313) “In the general population, right- they are furious about farming gagement effort, Winters said. ty Development Advocates of Detroit. 446-6000 sizing is a euphemism for layoffs,” and urban agriculture being of- The advisory team will meet “We want to be really creative Cable address: TWX 248-221-5122 AUTNEW DET he told the mayor. “It comes from fered as a solution. That’s not to regularly to vet plans or sugges- about how we engage citizens and CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly, except for a special issue the the business community. … I also say everyone feels that way, but … tions developed by Griffin and a how we engage young people” she third week of January, a special issue the fourth week of August, and no issue the third week of think you need to be careful about just because there are people out team of technical consultants be- said. “I think it’s important that December by Crain Communications Inc. at 1155 using too much business jargon. I there who have advocated a solu- fore such items are incorporated we find a way to interact with the Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and additional mailing know you’re obviously a successful tion doesn’t mean this community into the plan. The group’s next community. … Unless that hap- offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, Circulation businessman, and you’re using a has embraced it. You need to be move will be to weigh in on a for- pens here as well you will have a Department, P.O. Box 07925, Detroit, MI 48207- business model for the city, but you very careful not to take assump- mal community engagement strat- lot of pushback, and the plan may 9732. GST # 136760444. Printed in U.S.A. Entire contents copyright 2010 by Crain need to be careful about business tions to the community.” egy. A request for such proposals not succeed.” Communications Inc. All rights reserved. jargon. It makes people think it is Development of the plan will take has been made through the Kresge Nancy Kaffer: (313) 446-0412, Reproduction or use of editorial content in any manner without permission is strictly prohibited. all a front for big corporations that 12 to 18 months, Bing said, and will Foundation, but no companies [email protected]. 20100517-NEWS--0038-NAT-CCI-CD_-- 5/14/2010 5:56 PM Page 1
Page 38 CRAIN’S DETROIT BUSINESS May 17, 2010 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF MAY 8-14
the location. And it started Kindle, Ann Arbor-based Ⅲ The Michigan Economic to make some sense.” Visteon bookseller Borders Group Development Corp., the Michi- The school, created in Inc. is taking preorders for gan Small Business and Tech- Lost deal 1981, specializes in pro- its Kobo eReader. Borders nology Development Centers grams for gifted students. shareholders will debut an e-book store and the Michigan Credit Troy-based Thomas Duke next month with applica- Union League will offer Co. was the broker. lose bid for tions powered by Toronto- small-business owners and won’t deter based Kobo Inc., which pro- entrepreneurs increased Crain’s editor wins award duces a digital device that access to training and fi- displays books and runs ap- nancing opportunities, ac- Crain’s Detroit Business examiner plications. cording to a statement from Entrepreneurship Editor Ⅲ Japanese staffing firm an Buren Township- the group. Its website is banker’s bids Michelle Darwish is to be hon- Temp Holdings Co. Ltd. has www.cusbfa.com. ored by the Association for based Visteon Corp. acquired 4.8 percent of out- Ⅲ Data Driven Detroit ichael Tierney is Women in Communications V shareholders lost CNN segment to feature standing Class A shares in launched the website still working on Detroit their bid for an investiga- Troy-based Kelly Services www.datadrivendetroit.org M getting back into Azure Dynamics Chapter at tion of whether managers Inc. for $24.3 million, forg- to provide up-to-date data the banking game. its annual are wrongly proposing to Scott Harrison, CEO of Oak ing a cooperative relation- about metro Detroit. The Tierney quit his day job Matrix cancel the company’s stock Park-based Azure Dynamics, ship between the two com- Kresge Foundation-funded as president and CEO of Awards on as part of a plan to exit a manufacturer of hybrid panies to make them more data clearinghouse started Madison Heights-based PSB May 24. bankruptcy. electric and electric power- competitive in the global last year. Group Inc., the holding com- Darwish is U.S. Bankruptcy Court trains for commercial vehi- market. Kelly said Toshio Ⅲ The city of Allen Park pany for Peoples State Bank, this year’s Judge Christopher Sontchi in cles, will film a five-minute Saburi, executive director has issued a notice that on March 19 to head up a segment for CNN on Tues- winner of Wilmington, Del., has de- and a director of Temp may start the process of group trying to buy the as- day that is expected to run the Van- nied a request by share- Darwish Holdings, will join its board forcing film company Unity sets of the troubled Citizens nationally during the week. guard holders to appoint an exam- of directors. Studios out of the Allen First Bank in Port Huron. The segment also will air Award-Individual for her iner to investigate how Park Studio Complex for But his bid failed, and on across Canada on BNN at efforts that include oversee- managers put together the not paying its rent if a reso- April 30, state and federal 10:45 a.m. as part of a Busi- ing the Second Stage Extra reorganization proposal, LECTIONS regulators announced that E lution is not reached. ness of Green quarterly up- section aimed at growth Bloomberg reported. Ⅲ Troy-based First Michigan date. companies and Detroit The shareholders con- Simon Haddad, owner Unity Studios is majority Bank would be taking over Azure recently won a Make it Here, www.detroit tend Visteon is solvent and and president of Shelby owned and operated by a its $1.1 billion in assets. contract with Ford Motor Co. makeithere.com, website its stock shouldn’t be can- Township-based Audio group of investors from Los Subsequently, Tierney to supply the electric pow- and online community. celed. That claim should be Trends Inc., is the sole Re- Angeles and Michigan, in- met with representatives of ertrain for its Transit Con- Other winners are leader- resolved when the plan publican option for Macomb cluding Hollywood execu- the Federal Deposit Insurance nect Electric expected to ship coach and former jour- comes to court for ap- County executive, according tive Jimmy Lifton. Corp. and says they encour- come to market this year. nalist Anne Doyle, The proval, Sontchi said. to candidate filings made Ⅲ Rep. Kim Meltzer, R- aged him and his group of Women’s Caring Program and by the noon Tuesday dead- Clinton Township, is draft- backers, who had commit- the Detroit Regional News line for the Aug. 3 primary. ing legislation that would ted more than $200 million, Private school finds new Hub. For more information ON THE MOVE He’ll face in November’s allow police to request to bid in the future on other on the awards or to buy general election the winner proof of citizenship from home at auto dealership Ⅲ Troy-based First Michi- banks. tickets for the event, see of the Democratic primary people who are stopped and gan Bancorp Inc., the bank Tierney said his group, When leaders of a Farm- www.womcomdetroit.org/ race between county Sher- questioned on another of- holding company for First started by Port Huron attor- ington Hills private school matrix.htm fense. Officers would have Michigan Bank, has made iff Mark Hackel and county ney Gary Fletcher, will first went to Holiday Chevrolet Public Works Commission- the authority to arrest peo- looking for a deal, they did- the following management look to buy assets from a er Anthony Marrocco. ple who can’t prove their le- n’t find a car. Motown museum CEO moves: Gary Cortner to presi- bank or banks shut down by Ⅲ State Rep. Alma Wheel- gal status. They found a new home dent of the Port Huron re- the FDIC, then eventually will represent Namibia er Smith, Salem Township, Ⅲ The University of Michi- for the school. gion. Cortner had been ex- look to community banks dropped out of the race to gan has received a $760,550 The Steppingstone Center The Republic of Namibia re- ecutive managing director that are seeking buyers. be Michigan’s next gover- grant from the Michigan De- for Gifted Education bought cently named Motown Histor- and director of commercial Tierney said Fletcher partment of Energy, Labor and the former car dealership ical Museum lending for First Michigan nor, leaving House Speaker started raising money last Economic Growth to estab- building in Farmington CEO Audley Bank. Andy Dillon, Redford Town- November but that the CEO lish the Michigan Industrial Hills for $1 million to be the “Kano” Dennis Klaeser to CFO, re- ship, and Lansing Mayor of what would have been a Energy Center to help ener- school’s new home. Smith Jr. placing Thomas Brown, who Virg Bernero as Democrats new bank holding company gy-intensive businesses The old showroom will honorary assumed the new title of in the gubernatorial race. was turned down by federal Ⅲ Democratic Congress- lower their usage. become a classroom. The consul of COO. Klaeser had been se- Ⅲ regulators. He said a search old service garage will be a the Repub- nior vice president and se- woman Carolyn Cheeks Kil- Oakland County’s firm called him in late Feb- gymnasium. The school will lic of nior research analyst at patrick of Detroit will seek Emerging Sectors program ruary or early March. open in September. Namibia to Raymond James. an eighth term in the U.S. tallied enough new local He resigned from Peoples the State of House of Representatives rep- business or expansion in “When we were first con- Smith and began making the fronted with the idea, we all Michigan. resenting the 13th District, April to surpass $1.5 billion rounds of institutional in- said ‘are you crazy?’ ” said Smith lived in the south- COMPANY NEWS which includes parts of De- in total investment since ern African country for 10 the program’s inception in vestors in Chicago, New Tom Herbst, assistant to the Ⅲ Barring appeal by an- troit, the Grosse Pointes, years while serving as CEO 2004. Four April deals in- York and Minneapolis to se- head of schools. “But we other carrier, Atlanta- River Rouge, Ecorse, Lin- of Barden International L.L.C. vest $69 million, add 3,151 cure commitments. started looking at the price, based Delta Air Lines has coln Park and Wyandotte. new jobs and retain 880 been approved by the U.S. Her primary challengers jobs in the county. Department of Transportation include state Sen. Hansen to begin nonstop service be- Clarke and businessman tween Detroit Metropolitan and broadcaster Glenn Plum- OBITUARIES Airport and Tokyo’s Haneda mer. Airport starting Oct. 31. Ⅲ Donald Barris, founding EST FROM THE LOGS member of Detroit law firm B B Ⅲ Wal-Mart and the Wal- OTHER NEWS READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS Mart Foundation plan to do- Barris, Sott, Denn & Driker nate up to 27.5 million Ⅲ WWJ-TV Ch. 62 will air P.L.L.C., died May 10. He CoStar names ‘Power Brokers’ Red Cross chapters cut costs pounds of food, or 21.5 mil- the Detroit Lions’ four pre- was 91. lion meals, in Michigan be- season games this year in Ⅲ Terry Breese, co-owner The CoStar Group The Southeastern tween now and 2015 as part high-definition. of Huber & Breese Music in has“ released its roster Michigan“ chapter of the of a $2 billion effort to help Ⅲ The Huron-Clinton Met- Fraser, died of a heart at- of ‘Power Brokers.’ The American Red Cross is end hunger in the U.S. ropolitan Authority has voted tack May 8. He was 61. list is the culmination consolidating its Also, Wal-Mart has filed against taking over the Ⅲ Roy O’Brien Jr., retired of the research accounting functions Michigan State Fairgrounds CEO of Roy O’Brien Ford in company’s internal with 11 other Red for a preliminary site plan St. Clair Shores, died May data, based on all of Cross chapters across approval with the city of as a metropark. the deals the company the state in an effort to Novi to build a 150,000- The future of the state 10 of a heart attack. He was tracks. cut costs. square-foot store in the Novi fair has been unclear after 81. Town Center development on the state cut funding for the Ⅲ Kevin West, longtime ” ” the site of the former annual event last year. service learning director at Reporter Dan Duggan’s blog on commercial real estate Reporter Sherri Begin Welch’s blog Mervyn’s. Now, the state’s real estate Madonna University in Livo- can be found at www.crainsdetroit.com/duggan about Southeast Michigan nonprofits can be found Ⅲ nia, died April 28 after a at www.crainsdetroit.com/welch In a move to compete division will evaluate other with Amazon.com and its proposals for use of the site. heart attack. He was 51. DBpageAD.qxd 5/14/2010 12:07 PM Page 1 DBpageAD.qxd 5/13/2010 11:14 AM Page 1
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