20120917-NEWS--0001-NAT-CCI-CD_-- 9/14/2012 5:22 PM Page 1 ® www.crainsdetroit.com Vol. 28, No. 39 SEPTEMBER 17 – 23, 2012 $2 a copy; $59 a year ©Entire contents copyright 2012 by Crain Communications Inc. All rights reserved Page 3 Henry Ford AG seeks review of Blues assets Health lands chief innovation Move would throw hurdle in front of conversion plan CLOSER LOOK Debate is on officer BY JAY GREENE tions director Joy Yearout, said he wants end game is to make sure seniors and the over mission, CRAIN’S DETROIT BUSINESS to hire an independent expert to assess most vulnerable are protected,” Yearout funding, Page 28 the value of Blue Cross and its charitable said. What would Crop failure bites Michigan Attorney General Bill assets for the taxpayers of Michigan, It is unclear when the asset evaluation conversion state’s cider mills Schuette may have thrown a monkey similar to what was done when the non- would be completed or who would be mean? Page 28 wrench into the six-month timetable profit Detroit Medical Center was sold in hired, but it is expected to be done before Critics speak Gov. Rick Snyder announced last week late 2010 to for-profit Vanguard Health Sys- the Legislature approves enabling legis- up, Page 29 West Michigan Policy Forum that would allow Blue Cross Blue Shield of tems inc. of Nashville. lation this year that would allow Blue Michigan to convert into a nonprofit mu- “His first priority is to make sure the Cross to become a nonprofit mutual. Detroit River bridge tops tual insurance company. assets of Blue Cross (and its affiliated list of priorities, Pages 6-7 Schuette, through acting communica- companies) are evaluated because the See Blues, Page 28 Second Stage Extra Emagine steps up AMC rivalry Biomed company wants reaction from potential Theater planned buyers, Page 11 for Roseville This Just In BY CHAD HALCOM Survey: Innovative firms CRAIN’S DETROIT BUSINESS grow more revenue Paul Glantz’s proposal for an Prism Plastics Emagine Entertainment Inc. theater Companies that emphasize Labor lite co-owners in Roseville is his third and most innovation achieve higher Rod Bricker (left), ambitious yet along the I-94 corri- revenue growth and generate Jerry Williams and dor this year — but it could boost an average of 16 percent of Prism Plastics drives Gerry Phillips. company revenue by $10 million a revenue from new products or year and esca- services, according to a sur- late competition vey by the Detroit-based ac- efficiency with more machines with market counting, tax and consulting leader AMC En- firm Plante Moran PLLC. tertainment Inc. The second annual Innova- and fewer workers. Welcome to the new manufacturing model The Troy- tion Quotient survey, released based compa- last week, identified four tiers BY DUSTIN WALSH en days a week. And with just 58 ity translates into a reduction in ny’s co-founder of innovators that led to in- CRAIN’S DETROIT BUSINESS total employees, Prism is the hiring. Nationally, the automo- and CEO said creased profits. model of modern manufacturing tive industry employs 780,700, the 15-screen At Prism Plastics LLC in Chester- — fewer humans, more ma- down from more than 1.2 million Emagine Ma- “Accident innovators” re- Glantz act to customers or a need to field Township, a mere three em- chines, higher efficiency, in- in 2002. Michigan’s auto employ- comb — an $18 improve quality to innovate. ployees per shift work the 26,000- creased productivity. ment is down to nearly 96,200 million to $20 million investment “Disciplined innovators” square-foot factory, programming But increased productivity is a from more than 190,000 a decade planned on the site of a shuttered create cross-functional teams machines and packing boxes. contentious topic, politically and ago. Kmart store on 13 Mile Road east focused on innovation — led These employees don’t wrench on economically, as Southeast Mich- In other words, manufacturers of Little Mack Avenue — will be by strategy, such as entering parts. Their hands are not cal- igan and the nation continue to are producing more with fewer the only Macomb County location new markets or increasing ca- lused, at least not from their day recover from an economic reces- workers. And work continues to in Emagine’s long-term plans once pacity. job. sion and high unemployment. return to the U.S. from the effects it opens in late 2013. “Top innovators” generated The plastic injection molding Over the past year, manufac- of a global economy, but more of Glantz has shopped locations for 21 percent of revenue from in- supplier produces 500 million turing productivity increased 2.9 that work will be done by ma- a theater on the near east side of novation and “superstar inno- parts across its four plants and percent as output increased 5.5 chines, rather than humans. metro Detroit for some time, start- vators” 23.3 percent. Plante 28 molding machines. The ma- percent, the U.S. Bureau of Labor The reduced workforce has ing with an eight-screen proposal Moran surveyed 550 compa- chines need no sleep, coffee Statistics reported this month. paid off for Prism, which also has to Grosse Pointe city officials, nies. breaks or vacations. They work In the world of economics and plants in Port Huron and Harlin- which he withdrew in May, fol- — Dustin Walsh three shifts, 24 hours a day, sev- labor statistics, higher productiv- See Prism, Page 29 See Emagine, Page 27 JOHN SOBCZAK Crain’s Detroit Business hosts a FREE, SPONSORED WEBINAR: Oct. 2 Is your information protected? Noon – 1 p.m. PRESENTED BY: Compliance and Regulations for Sensitive Data REGISTER AT www.crainsdetroit.com/events 20120917-NEWS--0002-NAT-CCI-CD_-- 9/14/2012 4:50 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS September 17, 2012 MICHIGAN BRIEFS Rebuffed in Wisconsin, mining ed earnings in the first full fiscal year after the transaction is com- company considers site in U.P. Horse racers claim state aims to rein in their rights plete. The buyout is expected to A mining company hopes that close in Perrigo’s fiscal second the Upper Peninsula will be more Four harness racers who claim the state accused men have denied wrongdoing. quarter, which ends Dec. 31. receptive to its efforts to build an them of fixing horse races at Sports Creek Raceway in “The Fifth Amendment is the Fifth Amendment,” open-pit iron ore mine after a simi- Swartz Creek have sued to get their racing licenses said their attorney, Hugh Davis. “You cannot be de- MICH-CELLANEOUS lar attempt in northern Wisconsin back. prived of your right to engage in a legal profession ran into opposition. In their suit, John Moody, Donald Harmon, Rick and make a livelihood because you pleaded the Ⅲ Michigan Attorney General Bill Williams, president of Hur- Ray and Wally McIllmurray say the state refuses to Fifth.” Bill Schuette filed suit to stop the ley, Wis.-based Gogebic Taconite, renew their licenses until they appear before the According to the suit, the Gaming Control Board Sault Ste. Marie Tribe of Chippewa Indi- said the company is studying the Michigan Gaming Control Board and answer questions, cited a rule that says the board has the right to take ans from building the Kewadin Lans- results of some exploratory drilling MLive.com reported. away licenses if an individual fails to cooperate in ing casino in downtown Lansing, in the U.P. He told Wisconsin Public At a May 2010 hearing, the men refused to answer, an investigation. the Lansing State Journal reported. Radio that Gogebic was finding less claiming their Fifth Amendment rights not to an- The four say they were accused of conspiring to Ⅲ Dow Chemical Co. CEO Andrew opposition than it did in Wisconsin. swer questions that can be used to incriminate fix the outcome of races at Sports Creek, Northville Liveris said last week at a confer- Republican legislation that was them, according to the lawsuit, filed in U.S. District Downs and Hazel Park Harness Raceway. Authorities ence in New York City that the meant to streamline permitting Court. No criminal charges have been filed, and the have said the tracks are not accused of race fixing. world isn’t in its “normal growth and clear the way for the $1.5 bil- mode” and won’t return to that condition in at least the next six lion mine failed to pass the Wis- firm specializing in architecture, al revenue of $25 million. man and CEO Joseph Papa said in months. Midland-based Dow an- consin Senate. More discussion engineering and interior design. a statement. Omaha, Neb.-based — MiBiz nounced a corporate reorganiza- had been planned, but Williams is- Terms were not disclosed. Sergeant’s is privately held. tion this month. sued a statement saying Gogebic The merger marks the third Perrigo, which plans to fund the was leaving the state because the transaction involving West Michi- Drugmaker Perrigo to buy deal with available cash, said last Find business news from Senate sent a “clear message that gan architectural and design firms Sergeant’s Pet Care for $285M week it expects a tax benefit of around the state at crainsdetroit Wisconsin will not welcome iron since July. Grand Rapids-based about $50 million from the acquisi- .com/crainsmichiganbusiness. mining. We get the message.” Concept Design and Serve Studios Allegan-based Perrigo Co., which tion. The company expects the Sign up for Crain's Michigan merged to form Concept Design LLC makes over-the-counter drugs and deal to add about 12 cents a share Business e-newsletter at crains 2 firms build latest architectural this month, and Holland-based infant formulas that retailers sell to earnings and 20 cents to adjust- detroit.com/emailsignup.