CD_20120813page1BASIC.qxp 8/10/2012 5:29 PM Page 1
®
www.crainsdetroit.com Vol. 28, No. 33 AUGUST 13 – 19, 2012 $2 a copy; $59 a year
©Entire contents copyright 2012 by Crain Communications Inc. All rights reserved
Page 3 Marijuana faces climate McLaren to appeal state’s change – the political kind CRAIN’S MICHIGAN BUSINESS rejection of bed transfer Tool and die BY JAY GREENE to downsize its Pontiac hospital to 108 med- shops come CRAIN’S DETROIT BUSINESS ical-surgical beds, plus 27 psychiatric beds with emergency care and surgical services. back to life, Flint-based McLaren Health Care says it But on June 25, the Michigan Department of Page 8 will appeal the state’s denial of its certifi- Community Health denied McLaren’s applica- cate-of-need application to transfer 200 beds tion, saying it failed to comply with the “re- from its Pontiac hospital for a new hospital placement zone” requirement, which allows World Watch: McLaren wants to build in Oakland Coun- bed transfers only within two miles of the Redico LLC refinanced One Kennedy ty’s Independence Township. existing hospital. The proposed hospital is Square in downtown Detroit for Spotlight on In February, McLaren filed a CON to re- 7.6 miles from Pontiac, McLaren said. $27.3 million or $112 per square foot. Michigan biz locate 200 of the 335 hospital beds at In a statement to Crain’s last week, Incarnati McLaren Oakland to the proposed hospital in in Mexico, Page 15 Independence Township. McLaren planned See McLaren, Page 26 Sky-high refi: Health Care Extra Tackling One Kennedy hospital More the merrier at cruise readmissions, deal milestone Page 16 Companies open the party doors to employees, public Numbers back up Crain’s List BY SHERRI WELCH increasingly opening their tional event for Friday night Largest outstate private AND RYAN KELLY events to employees and the at Pasquale’s in Royal Oak. downtown revival CRAIN’S DETROIT BUSINESS public. The company’s 2011 par- BY NANCY KAFFER companies, Page 12 Auburn Hills-based Plex ty, held in a tented area in While many companies CRAIN’S DETROIT BUSINESS Systems Inc. once again have private par- , for example, the restaurant’s parking lot This Just In has expanded on the client- on the day of the cruise, was Two years ago, the deal couldn’t ties planned during Satur- have been done. The market was appreciation event it hosted for customers and prospects, day’s Woodward Dream Cruise too weak, lenders too wary. Plastipak sells minority and run-up to it, others are last year by adding an addi- said Tim Burke, director of But downtown Detroit has stake, gains growth room See Cruise, Page 23 changed. And two weeks ago, One Kennedy Square was refinanced for Plymouth-based Plastipak $27.3 million, making the value of Holdings Inc. closed Thursday the loan $112 per square foot. Be- on the sale of a minority cause the loan was financed at 65 stake to GS Capital Partners — percent of the building’s value, a group of funds in the mer- that places the price of the office chant-banking division of building at a whopping $170 a Goldman Sachs Group Inc. square foot. The amount of the previous- “That’s a big ly announced transaction was fricking num- undisclosed, but the deal will ber,” said Den- provide Plastipak new capital nis Bernard, for “substantial growth oppor- president of tunities across its global busi- Southfield-based ness platform,” GS Capital Bernard Financial said in a press release. Group, which Plastipak, a global maker of handled the refi- rigid plastic containers for nancing for consumer products, did not Bernard disclose how much of a stake Southfield-based GS Capital acquired, except to Redico LLC, owner of One Kennedy. say that the family of founder “I’ll close $500 million in loans this and CEO Bill Young will contin- year, but this is huge.” ue to hold a majority stake. Plex Systems Inc. plans to rev The deal is far from the rock bot- The company last year sup- up its Woodward Dream Cruise tom sales of recent history such as plied bottles and pre-form event, says Tim Burke, director the $5 million sale of the Penobscot containers to more than 450 of global automotive. Building representing a price of $5 customers and reported 2011 per square foot. revenue of $2.3 billion. And the One Kennedy Square — Dustin Walsh See Kennedy, Page 25 NATHAN SKID/CRAIN’S DETROIT BUSINESS
FREE to Crain’s Readers (/343 ! &2%% 30/.3/2%$ WEBINAR: Register at: 02%3%.4%$ "9 www.crainsdetroit.com/events SMALLSMAALLL BUSINESSB Beyond The Politics: AssociationA of MICHIGAN !UGUST s .OON PM Focusing the power of small business. What small businesses need to know NEWSPAPER 20120813-NEWS--0002-NAT-CCI-CD_-- 8/10/2012 4:57 PM Page 1
Page 2 CRAIN’S DETROIT BUSINESS August 13, 2012
MICHIGAN BRIEFS First try at local government Hiring and tooling expenditures are also up. consolidation comes up short Slow EV demand jolts W. Mich. battery makers “Both manufacturers and sup- Gov. Rick Snyder’s ambition to pliers seem to be increasing their get more of the state’s 1,800 munic- When Johnson Controls Inc. opened its advanced ion battery assemblies. But the plant is going payrolls and production sched- ipalities to consolidate may have battery plant in Holland in 2011, the company knew through changes as the company reacts to recent ules,” said Dunlap, who is based in sounded good in theory. But in the plant probably would serve a small niche for market forces — including the bankruptcy filing by Holland. His survey also found practice, it remains a work in electric and hybrid vehicles. a major client, Oak Park-based Azure Dynamics Corp., that some office furniture compa- progress. It turns out the company was right. The West and the buyout of its joint venture partner, the nies had modest reductions in In last week’s elections, voters Michigan companies continue to face overcapacity French battery company Saft. The company also work hours, capital expenditures in Onekama and Onekama Town- troubles as well as other turmoil as the electric-vehi- halted expansion plans. and product development . ship turned down a proposal to cle market develops. Industry observers and company officials say the He expects the industry to be flat merge into a single unit of govern- Contrary to previous announcements, the Ger- more than $1.1 billion committed to the industry in for the rest of the year, followed by ment. A two-thirds majority was man company Fortu PowerCell is not building a plant West Michigan positions the region well when the a slight increase in 2013. needed to approve the plan, and in Muskegon anytime soon. Work continues at the market does take off, even if that is a decade away. the total was 340 in favor and 305 LG Chem Michigan Inc. plant in Holland, but the com- Many experts think the market eventually will re- MICH-CELLANEOUS opposed. The village and township pany has not scheduled a date to begin production of act favorably to electric vehicles. But it requires nu- are about 40 miles southwest of lithium-ion batteries. merous factors to fall into place, including high Ⅲ Whirlpool Corp. said last week Traverse City. The first operating advanced battery plant in gasoline prices, government subsidies on EVs and that it plans to shut down the last Snyder championed legislation West Michigan, at Johnson Controls’ Meadowbrook an available charging infrastructure. of its operations in Evansville, to make mergers easier. This was campus in Holland, continues to produce lithium- — Joe Boomgaard, MiBiz Ind., by the end of 2014 and consoli- the first attempt at a merger since date the work at operations near the governor took office. the company’s Benton Harbor less certain than it did just a few bankruptcy court in Detroit, listed verted into common stock repre- headquarters. Whirlpool expects months ago,” Long said. Auto sup- total assets of $112.2 million and senting 53 percent control of the to spend about $18 million on reno- Grand Rapids manufacturing slips pliers, in particular “are not sail- debt of $195.6 million. company after it emerges from vations and equipment there. ing as high as they were a few Chapter 11. Capitol said it’s also For the first time since April The company also reported a net Ⅲ A bit of ominous news on the months ago.” The local economy seeking as much as $115 million in 2009, Grand Rapids’ manufactur- loss of $10.3 million in the quarter state of Europe’s economy: Dow could “dance back and forth across equity financing, which would ing sector declined last month, that ended June 30, compared with Chemical Co. CEO Andrew Liveris give potential investors 47 percent said Brian Long, director of supply the zero growth line” for several a loss of $16.4 million a year earli- said last week that the world’s of the company. management research at the Seid- quarters before resuming a slow er. The loss was due to “continued biggest producer of chlorine has man College of Business at Grand recovery, Long said. costs associated with problem as- seen a decline in demand that goes Valley State University. set resolution.” Survey: Office furniture rebounds beyond normal summer slow- A slight majority of the compa- Capitol Bancorp files Chapter 11 Capitol Bancorp announced in downs. The Midland-based compa- nies he surveys reported a decline June a voluntary restructuring The industry that is practically ny’s factories in Europe are run- in new orders and production in Lansing-based Capitol Bancorp plan in which debtholders were synonymous with West Michigan ning at about 81 percent capacity. July, Long said last week. The em- Ltd. has filed for bankruptcy with a asked to exchange their debt for — office furniture — is reporting Find business news from ployment and purchasing indexes prepackaged reorganization plan preferred and common stock. Con- higher gross sales and order back- around the state at crainsdetroit remained positive but less so than after a proposed restructuring ditions for the offer “were not logs after three slow quarters, Hol- .com/crainsmichiganbusiness. in previous months, he said. failed, Bloomberg News reported. met,” the company said. land analyst Michael Dunlap re- Sign up for Crain's Michigan “As we have warned in previous Capitol Bancorp, in its Chapter In the prepackaged plan, cur- ported last week in his 33rd Business e-newsletter at crains reports, the future now looks far 11 petition filed Thursday in U.S. rent debt and equity will be con- MADA/OFI Trends Survey. detroit.com/emailsignup. Legal Experience THE LEUKEMIA & LYMPHOMA SOCIETY CONGRATULATES OUR 2012 MAN & WOMAN OF THE YEAR In Your Corner. CANDIDATES ON A RECORD BREAKING YEAR
1EOMRKERMQTEGXMRXLI½KLXEKEMRWXGERGIV
Left to right: 8MQ1MPWO -RQIQSV]SJ'LVMW1MPWO (EZMH:MGEVM VITVIWIRXMRK7LE[R&YVV &SF0SSQMW &EVFEVE'EWWERM %RXLSR](YRR 2012 Man of the YearRyan LaFontaine +MVPSJXLI=IEV 7]HRI]&EP^IV &S]SJXLI=IEV:MRRMI4IVRE 2012 Woman of the YearPam Yanis8E]PSV/EREW1EVGME*SWREYKL%ZMW8IVV]3´(SRRIPP
8LI0IYOIQME 0]QTLSQE7SGMIX]GSRKVEXYPEXIWXLMW]IEV´W[MRRIVWERHEPPSJXLIGERHMHEXIW [LSGSQTIXIHJSVXLIXMXPI=SYVIJJSVXWERHGSQQMXQIRXXS½RHMRKGYVIWJSVFPSSHGERGIVW LEZIFVSYKLXLIPTERHLSTIXSXLSYWERHWSJTEXMIRXWERHXLIMVPSZIHSRIW
*SVQSVIMRJSVQEXMSRSVXSKIXMRZSPZIH TPIEWIZMWMX[[[Q[S]SVKQMSVGEPP THANK YOU TO OUR SPONSORS Eric Nemeth
First Tier Ranking in Tax Law LaHood Properties
I Metro Detroit I Grand Rapids I Kalamazoo I Grand Haven I Lansing 20120813-NEWS--0003-NAT-CCI-CD_-- 8/10/2012 5:25 PM Page 1
August 13, 2012 CRAIN’S DETROIT BUSINESS Page 3
Inside Defense contractors vie for Pot industry sees climate change special ops vehicle, Page 5 — has not returned messages, and DIA turns to building Legal limbo snuffs out growth spurt in Michigan his last known cellphone was not accepting calls or taking messages. endowment funds, Page 7 BY BILL SHEA year championed an unfair crack- ic chronic medical conditions. After Crain’s wrote about the CRAIN’S DETROIT BUSINESS down on pot in Michigan. Arrests The trade school reported oper- school in September 2009, Livio Radio seeks to connect and court rulings chilled the law, ating at its capacity of more than news outlets in busy market, Page 24 School is apparently out for Med they say, and the medical marijua- 100 students and had plans for out- around the Grow Cannabis College in Southfield. na industry is a shadow of its for- of-state expansion. globe — The Whether it’s a victim of the med- mer self. Today, the phones are discon- Washington ical marijuana industry’s collapse Med Grow opened in 2009 to tap nected and the school’s nondescript Post, Time, in Michigan, was simply poorly into the entrepreneurial boom that office location appears empty. Med The Tele- Company index run — or closed for some other rea- erupted after Michigan voters in Grow founder Nick Tennant — a graph of son — isn’t clear. November 2008 approved state-reg- Crain’s 2010 “20 in their 20s” hon- London, These companies have significant mention in this Cannabis advocates say state At- ulated therapeutic use of marijua- oree who said his school was taking The New York Times, week’s Crain’s Detroit Business: torney General Bill Schuette last na for people suffering from specif- in $500,000 in revenue at one point See Pot, Page 26 Adult Well-Being Services ...... 16 Aero Foil International ...... 8 Affinia Group ...... 15 Area Agencies on Aging Association of Michigan . . 18 ISTOCKPHOTO.COM Area Agency on Aging 1-B ...... 16 New workforce Automation Alley ...... 22 BBK ...... 4 Bernard Financial Group ...... 1 Center for Automotive Research ...... 8 nonprofit eyes Christian Home Health Care ...... 18 Chrysler ...... 15 Ciena Health Care Management ...... 20 Citizens Republic Bancorp ...... 4 better results Citizens Research Council of Michigan ...... 24 Con-way Freight ...... 15 Detroit Area Agency on Aging ...... 16 Aim is better biz Detroit Employment Solutions ...... 3 Detroit Institute of Arts ...... 7 ties, job training Duggan’s Irish Pub ...... 23 Federal-Mogul ...... 15 Foley & Lardner ...... 5 BY NANCY KAFFER Forte Bellanger ...... 23 CRAIN’S DETROIT BUSINESS General Motors ...... 15 Pamela Moore, president and The Gilmore Collection ...... 13 CEO of Detroit Employment Solutions Grede Holdings ...... 15 Corp., wants business to know Harvey Industries ...... 15 something: The new nonprofit ex- Health Care Association of Michigan ...... 18, 20 pects to be a better resource for em- Hewlett-Packard ...... 22 ployers than its city department Home Care Assistance of Michigan ...... 18 predecessor. IAC Group ...... 15 The 501(c)(3) IHS Automotive ...... 9 took over the Inteva Products ...... 15 functions, feder- Intrinsic Medical Imaging ...... 3 al funding and Karmanos Cancer Institute ...... 19 $47 million bud- GLENN TRIEST Lakeside Software ...... 22 get of the now- CEO Jorey Chernett says Intrinsic Medical Imaging LLC is six months away from a launch of its software that converts Livio Radio ...... 24 dissolved Detroit flat medical scans into 3-D images. Lutheran Social Services of Michigan ...... 18 Workforce Devel- McLaren Health Care ...... 1 opment Depart- Med Grow Cannabis College ...... 3 ment on July 1. Medilodge ...... 20 Moore But freed Metaldyne ...... 15 from the city’s cumbersome pur- Imaging software gets sales OK Michigan Economic Development ...... 10 chasing and payment processes Michigan Restaurant Association ...... 13 and legacy costs, Moore and De- Navistar Defense ...... 5 troit Mayor Dave Bing say they ex- Oakwood Healthcare ...... 17 pect the nonprofit to perform more Intrinsic is out to improve 2-D scans, cut costs Plante Moran ...... 15 efficiently, to work closely with Plastipak Holdings ...... 1 BY JAY GREENE Chernett said. the business community and to Plex Systems ...... 1 CRAIN’S DETROIT BUSINESS In the U.S., cardiovascular dis- more closely align training with Quicken Loans ...... 25 ease is the leading cause of death, private sector needs. We believe we Redico ...... 1 Intrinsic Medical Imaging LLC, a “ accounting for 25 percent of total So far, three contractors have Restaurant Partners ...... 13 Bloomfield Hills-based medical have a solution to deaths in 2009. Each year, more been terminated in the Jobs, Edu- Rush Trucking ...... 4 imaging software company, has than 1.2 million angioplasties are cation and Training programs, St. John Providence Health System ...... 16 received approval from the U.S. provide more performed, costing $25 billion. As Moore said. The agency has hired SelfLube ...... 8 Food and Drug Administration to be- many as 40 percent of those proce- a new contractor, New York City- Senior Alliance-Area Agency on Aging ...... 16 gin sales of a workstation that accurate dures may be unnecessary, said a based Grant Associates Inc., to run Strategic Staffing Solutions ...... 4 helps physicians more accurately 2007 study in the New England its three “one stop” centers for job TI Automotive ...... 15 read 2-D computed tomography information. Journal of Medicine. seekers and employers. University of Michigan ...... 19 scans. ” Chernett said his 1-year-old Most job training is actually Woodward Dream Cruise ...... 1, 23 If Intrinsic’s stand-alone imag- Jorey Chernett, company is six months away from conducted by contractors. Con- ing software works more effec- Intrinsic Medical Imaging LLC tracts for the JET programs alone a soft launch of its IMI Spectrum tively than the software built into 3-D imaging workstation. Intrin- come to $11.5 million. existing CT equipment, billions of ganizations putting more respon- Department index Nine JET contractors remain; sic is testing the workstation at dollars in unnecessary cardiology sibility on providers (and health Beaumont Health System the one-stop contractor will be in Royal BANKRUPTCIES ...... 7 and other medical procedures insurers) to reduce costs and im- Detroit Medical Center paid $6.1 million. Oak and the . BUSINESS DIARY ...... 22 could be avoided and patient safe- prove quality, we believe we have Intrinsic’s software enables Moore said 40,000 people either ty, quality and satisfaction could a solution to provide more accu- CALENDAR ...... 14 visited a one-stop office or partici- cardiologists to convert 2-D CT be improved, Intrinsic CEO Jorey rate information to reduce the images into 3-D without loss of CLASSIFIED ADS ...... 21 pated in JET programs last year. Chernett said. amount of cardiac catheterization JOB FRONT ...... 21 “Our contractors were not the data, Chernett said. “With health care reform and (diagnosis and removal of plaque KEITH CRAIN...... 6 See Workforce, Page 24 the focus on accountable-care or- in the arteries) procedures,” See Intrinsic, Page 25 LETTERS...... 6 MARY KRAMER ...... 8 In focus Daily news report OPINION ...... 6 Crain’s subscribers can get the latest business THIS WEEK @ Check out Crain’s collection of PEOPLE ...... 21 videos related to timely news news every day in their email inboxes and mobile WWW.CRAINSDETROIT.COM stories at crainsdetroit.com/video. devices. Sign up at crainsdetroit.com/crainsemails. RUMBLINGS ...... 27 WEEK ON THE WEB ...... 27 20120813-NEWS--0004-NAT-CCI-CD_-- 8/10/2012 4:53 PM Page 1
Page 4 CRAIN’S DETROIT BUSINESS August 13, 2012 vs. Female execs: Negotiating skills need sharpening BY MEGHANA KESHAVAN AND DANIEL DUGGAN TIPS FOR MOVING UP TUESDAY, AUGUST 2I • 7:055 CRAIN’S DETROIT BUSINESS Author Sara Laschever gave six tips to help empower women in asking for “Men are likely to describe what they want: First 10,000 fans get a Prince Fielder Bobbleheadad negotiation as like ‘winning a ball- Ⅲ Don’t accept the status quo — beforehand with a friend or game,’ and women are more likely assume everything is negotiable. colleague and role-play. Get them to WEDNESDAY, AUGUST 22 • 7:057:05 to describe it as ‘going to the Ⅲ Do your research. “The more you push your buttons, have them make dentist,’ ” said know, the better equipped you’ll you lose your composure — and First 10,000 fans get a Detroit Tigers All-Star Posterster Sara Laschever, know how high to aim and what to practice calm responses. Learn how ask for.” to put the ball back in your court.” an author and Ⅲ THURSDAY, AUGUST 23 • I:050505 speaker who co- Ⅲ Set a high target. “There’s a Be careful how you ask. “For wrote the book direct correlation between what women to be influential, persuasive, they need to be Women Don’t target you set and what you get. Women just have an inaccurately perceived as likable.” Ask with low sense of what they can get.” Ⅲ Build confidence and develop Carnegie Mellon Ⅲ Role-play. “Get together your skills. University eco- vs. nomics profes- sor Linda Bab- IX GAME CHANGERS Laschever S cock. Honored at the Crain’s Women: Profiles in Power event were six women Laschever was keynote speaker named as game changers in Crain’s June 4 issue for their career at the Crain’s Women: Profiles in accomplishments: Power event, which more than 400 Ⅲ Fran Parker, executive director of Staffing Solutions FRIDAY, AUGUST 24 • 7:05 people attended last week. the UAW Retiree Medical Benefits Ⅲ Sandy Pierce, former president Friday Night Fireworks She said that a reluctance to ne- Trust and CEO of Charter One Bank gotiate is deep-rooted. Ⅲ Carol Goss, president and CEO of Ⅲ Glenda Price, retired president of Women mostly aren’t raised to SATURDAY, AUGUST 25 • 7:0505 the Skillman Foundation in Detroit Marygrove College be aggressive, and those who are Ⅲ Cynthia Pasky, president and Ⅲ Andra Rush, CEO of Rush Saturday Night Fireworks perceived to be can be stifled in CEO of Detroit-based Strategic Trucking Inc. their careers if they are deemed SUNDAY, AUGUST 26 • I:055 unlikable, she said. Laschever’s speech was fol- company with 2011 revenue of SUNDAY KIDS DAY lowed by a panel discussion of six more than $200 million. All kids get a Back to School Insulated female business leaders, who were “We don’t do long-term con- Lunch Bag among 11 “game changing” tracts for anything,” she said. “We women profiled in Crain’s June 4 always negotiate. It’s our mindset; issue. negotiating is fun, so we negotiate Not so surprisingly perhaps, everything.” they view negotiating differently. Pasky said that being an un- “Well, I do ask,” said Andra flinching negotiator has helped 866.66.TIGER Rush, CEO of Rush Trucking Inc., re- her secure large deals with inter- sponding to a statistic that indicat- Rush Pasky national companies. ed men ask for advanced pay or “You have to focus on what your prestigious projects four times much that “when people see my end game is, and focus on what’s more often than women. name on their phone, they run.” important to you,” she said. “You Cynthia Pasky, president and That culture of negotiating is can be yourself. Don’t get caught CEO of Detroit-based Strategic something that she’s fostered at up in how you’re perceived when Staffing Solutions, said she asks so Strategic Staffing Solutions, a you’re negotiating.” Report: Citizens Republic solicits Huntington bid Huntington Bancshares Inc. may $1 billion since 2007 in commercial “I was a bit surprised (Citizens) be interested in Flint-based Citi- and residential real estate loans — would put itself up for sale,” Gard- zens Republic Bancorp Inc., accord- which forced the lender to operate ner said. “But if you take a look at ing to a Bloomberg report. under a supervisory agreement what Huntington is doing ... it Bloomberg reported that Citi- with the Federal Reserve Bank of looks like an attractive acquisi- zens is soliciting takeover bids Chicago. In April, the agreement tion.” from competitors, including Ohio- was terminated. As of Friday, Citizens had a mar- based Huntington, to repay its Citizens was expected to pay ket value of $804 million. $300 million TARP loan from the back its loan in early fall after It operates 156 offices in Michi- federal government. cleaning up its loan portfolio since gan and many more across the Three unnamed sources told merging with Republic Bancorp Midwest. Huntington operates 241 Bloomberg the company hired J.P. Inc. in 2006, said Larry Gardner, branches in Michigan. Morgan Chase & Co. to find a buyer founder of Troy-based Lawrence Citizens Bancorp is the 10th- in recent weeks. Gardner Associates Inc. largest bank by deposits in South- Huntington declined comment Gardner said Huntington could east Michigan, according to Friday afternoon; Citizens could be interested in Citizens’ reach in Crain’s list of largest banks and not be reached. Wisconsin as well as growing its bank holding companies. Continuity Citizens has lost more than own corporate deposits. — Dustin Walsh Trusted for 70 years. We’ll be here for generations. Some execs fear tier-two suppliers can’t keep up We work with our clients and their advisors to: TRAVERSE CITY — Some man- graded their operations. says many tier-two companies — Reduce estate and income tax Enhance fixed income ufacturing executives fear that Guy Morgan, managing director suppliers who serve tier-one sup- many North American tier-two for the Southfield-based global pliers — have gotten away with yields Solve family and business issues Improve suppliers will be unable to keep up supply chain consulting firm BBK not having formal procedures and existing life insurance policies. with the expected growth to 15 mil- Ltd., estimates that as many as 30 standardized production systems. lion in U.S. sales a year, up from percent of the tier-two sector may He believes high volumes over the about 14 million now. be unprepared for the industry’s past decade concealed factory inef- The reason? They lack the effi- pending expansion. ficiencies and poor management. cient operating systems that au- “Many of them just won’t sur- “Many of them have very unso- tomakers and tier-one suppliers vive the next wave,” Morgan said, phisticated management,” Morgan have been embracing. speaking after his presentation at reports. “They don’t see a problem Many small suppliers failed dur- the 2012 Management Briefing with high scrap rates. They’re not BIRMINGHAM, MICHIGAN 248.731.9500 ing the recession, leaving sur- Seminars last week. prepared to accommodate flexible WWW.SCHECHTERWEALTH.COM vivors pressed for capacity and Morgan, who works with suppli- line changes.” capital. Yet, many have not up- ers to improve their performance, — Automotive News 20120813-NEWS--0005-NAT-CCI-CD_-- 8/10/2012 4:49 PM Page 1
August 13, 2012 CRAIN’S DETROIT BUSINESS Page 5 Defense contractors set sights on supplying special ops vehicle
BY CHAD HALCOM GMV 1.1, as did Sterling Heights-based Gen- CRAIN’S DETROIT BUSINESS eral Dynamics Land Systems. New Hudson-based Pratt & Miller Engineer- At least five defense contractors with ing Inc. and BAE Systems Inc., which houses Southeast Michigan operations are vying its Heavy Brigade Combat Team business for a $318 million contract to supply a spe- unit in Sterling Heights, are project collabo- cial ops truck with weapons and off-road ca- rators with Northrop Grumman Corp. on that pability that can be deployed from military company’s Medium Assault Vehicle – Light helicopters. proposal for the GMV 1.1 program. Engineers and designers at the Madison Oshkosh Defense, a division of Wisconsin- Heights office of Navistar Defense coordinat- based Oshkosh Corp. (NYSE: OSK), an engi- ed that company’s development of the Spe- neering center in Warren, also submitted a cial Operations Tactical Vehicle, Navistar’s bid on GMV 1.1 but did not furnish details proposal for the pending Ground Mobility about its proposal to Crain’s. Vehicle 1.1 program under consideration at Northrop and Navistar confirmed their the U.S. Special Operations Command. proposed vehicles include a retractable A business unit of Warrenville, Ill.-based mounted machine gun. Ken McGraw, Navistar International Corp. (NYSE: NAV), deputy public affairs officer for SOCOM, Navistar Defense collaborated with Science said the new vehicle fleet is expected to be Applications International Corp. of McLean, transportable via Chinook and have an off- Va., and South Carolina-based Indigen Armor road capability to tackle “previously denied on that proposal, which builds upon the de- terrain” for special operations. sign of Indigen’s own Non-Standard Tactical George Ash, partner and chairman of the Truck. regulated industries practice team at Foley & “It’s a more overt version. Where the (In- Lardner LLP in Detroit, said local defense con- digen Armor) truck is covert and designed tractors are showing increased interest in to look more like a conventional pickup that smaller-scale military projects. blends in, this is more oriented to resemble A January contract decision date, Ash a military vehicle,” said communications said, could be a sign that a vehicle program manager Elissa Koc of Navistar Defense. remains subject to $110 billion in automatic “(The military) has asked for an unarmored federal spending cuts that kick in Jan. 2 un- variant, (but) even our variant has a certain less Congress works out other means of re- limited amount of armor.” ducing the federal budget. But McGraw said SOCOM, a unified military command of the award date is not related to sequestration. the U.S. Department of Defense in Tampa, Fla., “If you have a contract in place, and you coordinates clandestine operations and have budget money obligated on the con- oversees more than 50,000 special operations tract, you’re probably in good shape if se- When it’s your heart... personnel in the various armed services. It questration happens,” Ash said. received business proposals in mid-June “But to the extent you have an award com- and expects to award a seven-year contract ing after the November-December time- why go anywhere else? on the GMV 1.1 by January. frame, the program could be more tenuous. The contract will involve two years of in- Congress may not address this issue until af- tegration and prototype testing followed by ter the Nov. 7 election, and there’s certainly five years of fixed-price production. At least a lack of clarity on which direction the bud- 1,300 new trucks are expected to be produced get will take.” Whether you come to Beaumont for an EKG or a heart by 2020. Chad Halcom: (313) 446-6796, attack, you’ll find the most advanced heart care – The new fleet is expected to feature sever- [email protected]. Twitter: @chadhalcom al upgrades to SOCOM’s current ground mo- anywhere. bility vehicle, which is a variant of the High Mobility Multi-purpose Wheeled Vehicle, or At Beaumont, we pioneered a procedure – now used Humvee, developed by AM General LLC. It is also designed to allow teams of up to around the world – that actually stops heart attacks seven special ops soldiers to while they are happening. rapidly deploy from the cargo holds of Army CH-47 Chi- As the leader in minimally invasive heart surgery, we nook or Marine were first in the country to use a tiny catheter to replace Corps MH-47 he- licopters. an aortic valve. First in Michigan to correct atrial AM General, fibrillation robotically. And we offer minimally which has a mili- tary vehicle engi- invasive treatment for complex aortic aneurysms. neering and product COURTESY OF NAVISTAR Navistar Defense in development center Madison Heights The world’s most advanced technology and most in Livonia, also sub- worked up this design. mitted a bid on the experienced surgeons and cardiologists are right here. Do you have a Beaumont doctor? Bing seeks state’s help in creating lighting authority
Detroit Mayor Dave Bing is calling for the bonds to finance about $160 million in capi- Legislature to pass a package of bills that tal investments, using revenue from the would allow the city to create a public light- city’s utility users tax to pay the debt. Call 888-683-7678 or visit beaumont.edu ing authority. In fiscal 2011, the tax generated roughly The five-year, $144 million plan would be $44 million. About $17 million was allocated enacted in four phases and a “pre-phase,” to the Detroit Police Department. which could be completed before the author- Detroit COO Chris Brown said that the ity is created. city is also asking the Legislature to suspend Marc Sakwa, M.D., a second-generation surgeon, is chief of More than half of the roughly 88,000 Public an income tax rollback. The additional in- Cardiovascular Surgery at Beaumont Hospital in Royal Oak. Lighting Department streetlights are out, and come tax funds would replace the utility At the Beaumont Valve Center, he and his colleagues are restoring all of those lights isn’t in the cards. users tax in the police department’s funding. But Bing said that, under the new authority, The legislation proposed by Bing would en- performing innovative, leading edge procedures, such as the number of working streetlights would go able communities to create lighting authori- replacing aortic valves through small, three-inch incisions. from about 35,000 currently to about 45,000 ties. In Detroit, for example, the City Council in about five years. would have to vote to create the authority. The authority would be able to issue — Nancy Kaffer 20120813-NEWS--0006-NAT-CCI-CD_-- 8/10/2012 5:03 PM Page 1
Page 6 CRAIN’S DETROIT BUSINESS August 13, 2012 OPINION LETTERS Turmoil over EM law Tenure issue misunderstood Editor: knowledge is made by professors Mary Kramer mistakenly char- Crain’s Detroit Business who are engaged in both teaching welcomes letters to the editor. acterizes the choices about a pro- and research. Tenure is hard won All letters will be considered for posed contract at Wayne State as a after incredibly competitive job publication, provided they are mustn’t stall change clash between a board that realisti- searches and years of review and signed and do not defame cally needs more control over per- assessment. Tenure provides intel- individuals or organizations. t’s like peeling an onion. sonnel during a time of economic Letters may be edited for length lectual freedom and a long-term Under Detroit’s consent agreement with the state or crisis, and a faculty union and and clarity. commitment between professor union sympathizers who are blind- and institution that allows re- Write: Editor, Crain’s Detroit I earlier agreements that changed management of the city’s ly defending tenure (“Faculty talks searchers to create new knowledge Business, 1155 Gratiot Ave., regional water, there’s the tantalizing promise of saving mon- test Wayne State board,” July 30). in their fields. They share those Detroit, MI 48207-2997. ey and improving services by removing layers of calcified This is another case where those in findings with their students and Email: [email protected] business practices. business and industry make unin- the greater community. That progress must not end because of turmoil created by formed assumptions about how Research universities spur eco- higher education works. marks not just the loss of one job nomic activity and revitalization. the future of Public Act 4, which strengthened the powers of The problem isn’t the faculty but also the end to an entire ca- WSU has a history of doing just state-appointed emergency managers to run financially insol- union. The problem is that the job reer. Even in this dismal job mar- that in Midtown, the region and vent local governments. Though PA 4 is on hold pending the market in higher education oper- ket for those with Ph.D.s, it is the state, all while providing edu- outcome of a public vote in November, we hope Detroit’s con- ates in a manner very different from highly unlikely that qualified can- cational opportunities to many sent agreement was crafted to be on sturdier legal ground. other private or public sectors. didates will consider coming to people who are often the first in Seen from the point of view of a Wayne. their families to attend a universi- Certainly, there was a flurry of activity last week. First, prospective faculty member, why If Wayne State adopts the pro- ty. Are the board and business Mayor Dave Bing announced a plan to overhaul the Detroit accept a post at an institution with posed labor agreement, it will be leaders willing to destroy all of Water and Sewerage Department, cutting more than 1,000 jobs a hiring (and firing) policy radical- impossible to hire and retain com- that for such short-term, short- over several years while reducing job classifications to 30 from ly outside the norm for the profes- mitted, dynamic teachers and re- sighted gains? If adopted, these 257. (Imagine the effect in your own business of job descrip- sion? This is especially true when, searchers. Universities are not policies will be the end of Wayne because of the peculiarities of the just places where existing infor- State as a research university. tions so narrowly drawn that flexibility and efficiency are vir- academic job market, losing a uni- mation is transferred to students. Sara Chapman tually impossible to achieve.) versity post almost inevitably They are also sites where new Birmingham Bing also urged state lawmakers to approve bills to create a new public lighting authority for Detroit, a step that deserves bipartisan support. It has been just over four months since Detroit’s mayor and a majority of City Council members reached a consent agree- TALK ON THE WEB ment with the state. The path under that agreement hasn’t been smooth, but it hasn’t failed, either. From www.crainsdetroit.com Consider the transition of the city’s workforce development Re: DIA millage approved actual or manufactured bottom department to a nonprofit agency. As Nancy Kaffer reports on Reader responses to stories and blogs that appeared on Crain’s line and whether the Freep might Page 3, the new agency already has fired three subpar contrac- Let’s work to get representatives have been better off as an indepen- of the taxpayers onto this board. website. Comments may be edited for length and clarity. dent rather than being swallowed tors and hired a new major contractor. It landed its first big Their interests, not those of the client: vetting applicants for 500 new jobs at an auto supplier. and loaded down with the debt and privileged few, should be heard. unaccountable management prac- The alternative to the consent agreement is almost certain Jeff Stoltman Corp. … The Mackinac Center has tices of the new and remote mega bankruptcy — with a bankruptcy judge calling the shots. No- said Snyder is “building a scaffold- corporate owner. body — neither the state nor the federal government — will ing for plunder.” MichAuto is one Milton Alexander Re: Chamber, MEDC to work together of the platforms. simply write a check to Detroit to enable the status quo. on MichAuto to boost auto industry P Lester Diddy Snyder may have gone into of- Re: Emergency manager referendum fice by getting more citizen votes Re: General Motors’ IT insourcing I’d like to know what the people Forum continues right-to-work talk opposing these laws would do to than the Angry Mayor, but he does I’m sure all of GM’s former IT em- solve the issues plaguing the cities When business leaders in West Michigan staged their first not work for the people of Michigan. ployees who were forced into EDS, and schools (where) EM’s have He works for the Business Leaders having lost most of their GM retire- public policy forum in 2008, making Michigan a “right to been put in place. I hear them for Michigan and the Chamber of ment benefits, are just thrilled work” state landed at the top of their policy wish list. wanting to repeal the law, but no Commerce. … Snyder and his crew about this. All who are so excited The forum reconvenes in Grand Rapids in September for the alternatives to solve the problems. in the Republican cause have con- about this have a very short memory. BrandonP third time in six years, just seven weeks before Michigan voters fiscated a pile of loot from pension- Mr. VRC decide whether Michigan should guarantee collective bargain- ers, homeowners, the working ing rights in the Michigan Constitution. (See story, Page 11.) poor, K-12 education, university As a laborer affected by the provi- students and their parents, and lo- Re: Detroit Free Press departures sions of Public Act 4, I am very re- The forum may be in Grand Rapids, but it’s an important cal communities. They are passing The sugarcoating in this story lieved by Justice Mary Beth Kelly’s topic for businesses across the state. The constitutional guar- it out to political friends in busi- about a “natural” fallout of talent decision. She clearly placed morals antee will be a barrier for job growth — except maybe in the ness (and) government via the at the Detroit Free Press possibly before politics and ruled accordingly. public sector. Michigan Economic Development tells something about Gannett’s Brian Harris KEITH CRAIN: For most, the elections are already over Last week, we held our primary the Democratic incum- all over. We’ll be bom- and happy for the next few turnout is still far less than a lot of elections. It was a partisan vote, bent, there could be barded by commercials months. people hope for. Republican or Democrat. In many some surprises that will for all sorts of candi- Of course, there are a lot of is- I still believe that the unin- races, whoever won the primary make it closer than the dates and issues in the sues that most folks don’t even formed should just stay home. I fig- has virtually won the November pundits predict. next three months. know are on the ballot. So ad cam- ure that if someone doesn’t really election, too. We’re going to have There was a time paigns will try to persuade them, know the issues and the candi- But there are still a couple of quite a few statewide when everyone thought too. dates, they shouldn’t vote. Or they very important contests in Novem- referenda on the No- that Michigan was There is no point in spending should vote only in the races or the ber we can’t ignore. The presiden- vember ballot, too. Two firmly in the Democrat- any money on the folks who are al- ballot positions they know. Leave tial election certainly will be a of the hot questions are ic camp for president. ready for or against you. It’s just the rest of the ballot empty. very tight race; whoever thinks asking whether citizens But that’s changed, and those few lucky souls who still that is already decided is sadly want a second bridge to we’ll see a lot more po- haven’t decided. Voting is a right of our citizens. mistaken. Canada in Detroit and litical advertising on The primary brought out some- But with the right comes the re- We also can’t ignore the race for whether the state can appoint TV and radio to try to reach the thing around 20 percent of eligible sponsibility of learning about the U.S. Senate. Although most folks emergency managers. undecided. The extra spending voters. Although the presidential candidates and the issues. Is that will tell you that it’s a done deal for So don’t sit back and think it’s means broadcasters will sit fat election will bring out many more, too much to ask? 20120813-NEWS--0007-NAT-CCI-CD_-- 8/10/2012 4:47 PM Page 1
August 13, 2012 CRAIN’S DETROIT BUSINESS Page 7 After millage win, DIA turns to building endowment funds
BY SHERRI WELCH donors, and indeed all of the resi- There are no immediate plans to peer institutions in Cleveland, “I’m sure there are a lot of peo- CRAIN’S DETROIT BUSINESS dents of Southeast Michigan,” Er- hire additional fundraising staff, Toledo and Indianapolis. ple ... whose estate planning is al- ickson said. “Those are the mes- she said. Such institutions with a sizable ready settled. You just have no Raising endowment funds in the sages we’ll be formulating and “What really is critical is how ef- endowment supporting them saw idea what is already in the (DIA’s) best of times is challenging. articulating in the months ahead.” fective your message is, how well an individual family or handful of pipeline, and they’ll continue But the Detroit Institute of Arts is Every type of fundraising car- you deliver it, and how well you donors establish the permanent working with new prospects,” he up to that challenge, said Mark ries its own set of challenges, she cultivate your donors,” Erickson fund at their founding, Erickson said. Neithercut, principal at Detroit- acknowledged. said. said, and they’ve continued to Without the pressure of sur- and Chicago- “And donor fatigue is not some- As part of its new charge to raise grow them. vival, the DIA can focus on endow- based Neithercut thing the DIA is just facing. Many endowment dollars, the DIA may “We’ve got to find our genera- ment, DiChiera said. Philanthropy Advi- of my colleagues around town and have to revisit gifts made to sup- tion of thoughtful and generous “That’s a nice place to be,” he sors and a DIA indeed the U.S. are seeing it.” port its operations. donors who will do that for the said. “I think 10 years is a very trustee. The museum has an accom- “We’ll have to think about DIA,” she said. comfortable amount of time to The DIA par- plished team of staff and volunteer rededicating those, possibly to en- The museum already has built a build a significant amount of en- ticipated in the fundraisers and will continue to dowment,” with donor permission, group of people who support the dowment.” Van Dusen En- formulate its planning and begin Erickson said. museum, said David DiChiera, Sherri Welch: (313) 446-1694, dowment Chal- to execute in the months ahead, The DIA has far fewer dollars in founding general manager of the [email protected]. Twitter: lenge and Touch Erickson said. endowments when compared to Michigan Opera Theatre. @sherriwelch the Future en- Neithercut dowment-build- ing programs administered by the Community Foundation for Southeast Michigan in the 1990s and early 2000s. The museum has been educat- ing its donor base about the impor- tance of endowment for nearly 20 MY PASSPORT DOESN’T SAY years, said Neithercut, a former Community Foundation executive who worked with local nonprofits to help them build endowments through the programs. “SPINE DISORDER.” “Given the central importance of the DIA to our region, I think they are well-positioned to be suc- cessful,” he said. The museum is catching its Shari Finsilver is not defined by her disorder. breath after winning voter ap- proval last week for a 10-year oper- She just wants to see the world ... on her schedule. ating millage in Wayne, Oakland and Macomb counties. But it does- Fortunately for Shari, she has the experts of Henry Ford n’t plan to rest long, said COO An- nemarie Erickson. making sure she’s pain-free and still on the go. As the first The DIA hopes to have an early and most experienced minimally invasive spine surgery team strategy for raising a $350 million to $400 million endowment over in Michigan, as well as the first and most proven team in the next decade in place by early fall. the U.S. to perform radiosurgery on spine tumors, the It won’t be starting from scratch. Henry Ford Spine and Neurotrauma Center is on a mission – As of June 30, 2011, the value of the DIA’s unrestricted endowment to conducting more than 20,000 spine surgeries and making sure fund operations was $89.3 million, that patients like Shari can get back on their journey. Vice President and CFO Robert Bowen said in an email. The museum also has three oth- er endowments for specific uses. The June 2011 values of those with the designated purpose were: $59 million for art, $8.2 million for edu- To learn more or to schedule an cation and $11 million for other purposes such as art conservation appointment, visit henryford.com or exhibitions. or call 1-800-HENRYFORD. “We understand fully this (en- dowment campaign) is going to be about a compelling message to our
BANKRUPTCIES
The following businesses filed for Chapter 7 or 11 protection in U.S. Bankruptcy Court in Detroit the week of Aug. 3-8. Capitol Bancorp Ltd., Capitol Bancorp Center, 200 N. Washington Square, Lansing, voluntary Chapter 11. As- sets: $112.2 million; liabilities: $195.6 million. (See Page 2.) Class Act Outdoor Services LLC, 32615 Pardo St., Garden City, voluntary Chapter 7. Assets: $4,850; liabilities: $73,247. Financial Commerce Corp., 2950 State St. S., Ann Arbor, voluntary Chapter 11. Assets and liabilities not available. One Ace Autobody Inc., 400 W. Ann Ar- bor Road, Plymouth, voluntary Chap- ter 7. Assets and liabilities not avail- able. — Ryan Kelly 20120813-NEWS--0008-NAT-CCI-CD_-- 8/10/2012 1:29 PM Page 1
Page 8 CRAIN’S DETROIT BUSINESS August 13, 2012
PUBLISHER’S NOTEBOOK
Contact Mary Kramer at mkramer @crain.com. CRAIN’S MICHIGAN BUSINESS Mary Kramer House Party launches Grand Rapids edition Seven years ago, the Michigan State Housing Development Authority gave Crain’s a challenge: Could we come up with a creative way to promote market-rate housing in Detroit? That’s how the Crain’s House Party was born: One night, 40 simultaneous house parties in urban lofts and historic homes, an afterglow that drew 1,100 people last September. Among the attendees was a small contingent from the Grand Rapids Area Chamber of Commerce, led by their new CEO, Rick Baker. Baker and some of his board members liked the House Party concept enough that they have imported it to Grand Rapids. With a twist. Because employers there have expressed a need to help new hires connect with the larger community, the Grand Rapids party Aug. 29 is specifically geared to “newbies.” But JON BROUWER it’s open to anybody who wants a “We are looking at hiring,” says CEO Philip Allor of SelfLube Inc. “We’re hard-pressed to find capacity to hit intermittent demand now.” peek at some great living spaces in the city. “People interact differently in small groups and when you’re being entertained in someone’s home,” Baker said. “We wanted a way for people to build relationships in a nontraditional, nonchamber way.” Holly Jacoby’s home will be one of them. She and her husband have lived in Tool time their condo above retail space on Monroe Center since 2004. Jacoby, who works with commercial real Recession-thinned tool and die shops bustling to meet rising demand estate clients at PNC Bank in Grand Rapids, saw the House Party as a BY MATTHEW GRYCZAN tent demand now.” chance to show their living space and CRAIN’S MICHIGAN BUSINESS SelfLube has fabricated mov- why the couple love living — and ing parts used in metal-stamp- working — downtown. here’s not as much talk in ing dies and plastic injection “I really think that the hipness and Michigan these days about molds for more than 20 years. coolness of GR is more difficult to see T how the Chinese hijacked The company employs about 30 in your first visit. This is the perfect the tool and die industry, steal- people in the office and on its mix of ‘big’ city and ‘small’ town,” ing jobs that form the back- well-lit, air-conditioned shop said Jacoby, who had lived in Holland bone of manufacturing and as- floor — which resembles a and Chicago before moving to Grand sembly plants worldwide. Rapids in 1991. high-end auto dealership more With the largest concentra- than one of those dungeonlike The House Party format is the same tion of tool and die shops in the tool and die shops of the 1950s. as in Detroit: Each guest will sign up to country, Michigan is bursting Steve Kutches feels the same attend a small cocktail party at a with activity as automakers home, loft, apartment or condominium capacity squeeze at his embark on what experts say is Muskegon shop. He also leads a around the city to network with home the biggest overhaul of their owners and partygoers. coalition of six Michigan tool vehicles in more than a decade. SelfLube makes these bushings and spacers in Coopersville. and die companies that all re- See Mary Kramer, Page 9 Adding to the tooling resur- ported at their June meeting gence is rising demand from they are more likely to source ny out of the tool right now,” higher sales and long backlogs. other industries, such as aero- locally because the lead time is Baron said. “We were meeting monthly, space, office furniture and ap- faster,” said “The other part of the reason but we postponed some of our pliance manufacturing. Jay Baron, why we are so busy is we lost meetings because we are all so Overtime is plentiful now in president one-third of the industry in busy,” said Kutches, founder shops throughout Michigan, so and CEO of Michigan. We are one-third and president of Aero Foil Inter- much so that tool and die com- the Center for smaller than we were 10 years national Inc., a producer of tool- panies have the opposite prob- Automotive ago.” ing for about 28 U.S. foundries lem they faced in 2009. Instead Research in Philip Allor, founder and that supply blades, shrouds of having to lay off highly paid, Ann Arbor. president of SelfLube Inc. in and other parts for high-speed skilled people, they now can’t The au- Coopersville, said his company turbines used in jets and land- find experienced toolmakers tomakers has been “working a lot of based electric generators. Holly Jacoby’s condo — open to Grand and engineers. “are being overtime, and we are looking Rapids House Party guests Aug. 29 — Baron There is some concern that driven more at hiring more full-time ma- is above retail space in downtown “The auto companies are the tool and die industry will Grand Rapids. rolling out a lot of new, re- by delivery dates rather than chinists. We’re hard-pressed to freshed models of vehicles, and trying to squeeze every last pen- find capacity to hit intermit- See Demand, Page 9 20120813-NEWS--0009-NAT-CCI-CD_-- 8/10/2012 10:13 AM Page 1
August 13, 2012 CRAIN’S DETROIT BUSINESS Page 9
CRAIN’S MICHIGAN BUSINESS Advertorial Mary Kramer: GR party ■ From Page 8 After cocktails, guests will move Building Pure Michigan downtown for a strolling dinner, GRAND RAPIDS HOUSE PARTY entertainment and an afterglow at places begins with Open Systems Technologies Inc., an When: 5:30-9:30 p.m. Aug. 29 information technology company Cost: $60 to attend House Party celebrating great places. housed in the former headquarters and afterglow reception, $40 for afterglow only. of a toy and game manufacturer. Now through Labor Day, September 3, 2012, MSHDA is the lead sponsor, as it Registration: (616) 771-0303 or grandrapids.org/houseparty. has been in Detroit. residents across our state have the chance Mary Smith has been handling to win fantastic prizes by answering one relocations for corporate clients of it is a best-kept secret. The diversity simple question: Why do you choose to Greenridge Realty for 11 years. In a of our area keeps changing.” typical year, she can work with 200- Smith joined the advisory com- call Michigan home? 300 prospective hires considering mittee to promote the Aug. 29 event job offers in the Grand Rapids area. as another way of “showing” the “I work with families from all community. “It’s a great way for At the Michigan State Housing Development Authority (MSHDA), the Michigan over the world. They come with per- newcomers to join a small group of ® ceptions of Grand Rapids,” Smith people, socialize and build relation- Association of REALTORS (MAR) and Art Van Furniture, we are committed to said. “But when I do tours, they see ships.” placemaking – the idea that people are attracted to great places and vibrant communities. We’re uniting to help reimagine Michigan through the lens of placemaking. But we need your help! Enter the MIplace™ Sweepstakes. Tell the world at facebook.com/MIplace2012 why you choose Michigan as Demand: Shops busy your place to live, work, play and share the dream of homeownership. ■ From Page 8 Celebrating great places. get derailed in 2014 when today’s glut of redesigns by the auto in- Michigan is blessed with great dustry subsides. For now, every- The key to high places. Thriving neighborhoods, one is enjoying the ride. “ from Dearborn to Sault Ste. Marie. productivity in Dynamic downtowns, from Tool of industry manufacturing is to Kalamazoo to Bay City. The tool and die industry in Small-town gems, from Michigan is like Waldo of “Where’s have the best tools. Fenton to Ferndale. Waldo?” fame: It’s everywhere, but ” you have to look hard to find it. Philip Allor, Coopersville The goal of the MIplace™ Tooling Alliance “It’s the industry that makes the Sweepstakes is to inspire tools that manufacturers use to make stuff: cars, appliances, air- coming online.” individuals, communities and plane parts,” said Allor, who heads Among other factors, the au- organizations to develop even the Coopersville Tooling Coalition, tomakers milked their existing de- more Michigan great places. comprising his tool and die shop signs longer than normal over the Our mission begins with one and four others. “And the key to past three years because of lack- high productivity in manufactur- luster sales during the recession easy step: Celebrating the great Read about Howell and more Michigan ing is to have the best tools.” and tepid recovery. places that are uniquely Michigan. placemaking success stories at MIplace.org. More people were employed in Michigan last year as tool and die Let the good times roll makers than in any other state — Share why you choose Michigan 11,750, according to the U.S. Bureau Kutches at Aero Foil concedes at facebook.com/MIplace2012. of Labor Statistics. The ratio of tool- that although he has 36 full-time makers to the total Michigan jobs employees working at his Mus- Tell us what makes your Michigan was nearly twice the ratio of the kegon company, “I really should state’s nearest competitor, Ohio. have 45 employees, but I need to place great – from new homes and As one would expect, Michigan’s bring people on slowly and deliber- condos to renovated houses and tool and die industry is concentrat- ately,” he said. repurposed lofts, family-friendly ed in metropolitan areas. The Bu- Working with specialty alloys neighborhoods with parks and reau of Labor Statistics list includes that contain large percentages of the metro areas of Warren-Troy- cobalt and nickel “as hard as wood- gathering places, or walkable Farmington Hills, Grand Rapids- pecker lips” is a demanding job, downtowns with a variety of restaurant, Wyoming, Detroit-Livonia-Dear- Kutches said. Machinists regularly shopping and transportation options. born and Grand Haven-Holland. hold tolerances anywhere from Everyone has a story – we want to hear Allor estimates that about 40 0.0002 to 0.0005 inches on turbine percent of the tooling made in this parts that are precision-ground yours. It’s fast, fun and rewarding. country goes into the auto indus- with diamond-studded wheels. try. “The automotive industry is With annual sales of about $7 mil- To enter the MIplace™ Sweepstakes, submit a video or written testimonial at ferociously competitive — it’s all lion, Aero Foil is one of the largest about style and appearance,” he U.S. producers of electronic gages facebook.com/MIplace2012. Art Van Furniture – which celebrates 53 years said. “When manufacturers want used to check turbine parts, Kutch- of doing business in Michigan – is providing prizes, including a $3,000 to change the appearance of the es said. While his company doesn’t Shopping Spree Extravaganza. The bonus reward? Enjoying more pride do automotive work, his colleagues product, they have to buy tooling.” in your Michigan home. Between 2013 and 2014, the auto in a coalition of five other tool and industry will embark on the biggest die companies all have reported model changeover it has seen over markedly higher sales and longer Michigan residents can submit a testimonial and enter the sweepstakes the past decade, said Mike Jackson, lead times because of increased de- director of North American produc- mand from automotive and other at facebook.com/MIplace2012 until Labor Day, Sept. 3, 2012. tion forecasting at the Northville industries. branch of IHS Automotive, the Engle- As president of the Muskegon wood, Colo., forecasting and busi- Tooling Alliance of West Michigan, ness intelligence group. Kutches heard a report from Camp- IHS Automotive predicts that bell Grinder Co. in Spring Lake that 14.9 million vehicles with gross ve- 2013 will be the best year in its his- hicle weight of less than 5 tons will tory, based on current backlog. Di- be produced in North America this etech Tooling Solutions in Muskegon, year, up 1.8 million from a year which makes dies for the furniture, ago. “That kind of increase is just automotive, aerospace and appli- To learn more about Michigan placemaking, go to MIplace.org. incredible,” Jackson said. “It’s the ance industries, said orders have equivalent of nine assembly plants See Demand, Page 10 20120813-NEWS--0010-NAT-CCI-CD_-- 8/10/2012 10:14 AM Page 1
Page 10 CRAIN’S DETROIT BUSINESS August 13, 2012 CRAIN’S MICHIGAN BUSINESS Our Family Demand: Tool and die shops swamped ■ From Page 9 Taking Care of been up 18 months straight, with an kicking and screaming all the way. expectation that 2012 sales will “When you bring competitors reach a 15-year high. Qwik Tool & These are small into a room, in the first meeting or Manufacturing Inc. in Muskegon “ two, you hear stories about how companies, and it Yours For Nearly Heights reported sizable increases so-and-so stole my employees or in business over the past five quar- undercut me on the last bid,” ters. doesn’t take a lot ... Baron said. “You hear the war sto- But times haven’t always been to affect their ries, and you understand that it’s a 30 Years. rosy in tool and die, Kutches said. ruthless business. The tooling alliance started in 2006 “But over time, they start to over- with nine businesses, three of cash flow. look that, and they find things that which have folded as toolmaking ” they can agree to work together on.” was outsourced to low-wage na- Jay Baron, Campbell said a study done by At Advomas®, we believe nothing tions such as China and Mexico. Center for Automotive Research the MEDC last year indicates that Allor at SelfLube said his com- ments allowed to the 24 coalitions. the return on investment was $1.35 is more important than family. pany discovered the degree of cra- “If we did not have that, I would for every $1 of tax abatement al- tering in the tool and die trades not be here today — seriously,” lowed, using a conservative esti- That’s why we are so passionate about four years ago. Kutches said. “We would have mate of the value of direct jobs. “In the worst part of the reces- been like the other three in our While the cost of producing a die sion, we started calling our contact group who folded.” slid by about a third over the past about improving the financial health list of potential customers that we Said Baron, who himself helped decade, that doesn’t mean profit compiled from attending years of found the United Tooling Coalition in margins have gone down by the of our clients and their uninsured patients trade shows,” he said. “We call it Ann Arbor: “The average tool and same percentage, because tool our X-files because we might not die shop in Michigan has about 24 manufacturing has gotten much have had contact with them for a employees. These are small com- more productive, Baron said. with empathy, dignity, and respect. We while. The shocking thing was that panies, and it doesn’t take a lot of “One of the executives at Ford when we placed calls to these com- money to affect their cash flow.” said that the company reduced the have the knowledge and experience, but panies, about 40 percent of the Along with tax relief, the partici- number of dies per car by one- phones were disconnected.” pants also learned lean manufactur- third. And at the same time, we re- most of all, we have the compassion. ing and best practices — sometimes See Demand, Page 11 Deconstructing, reconstructing Baron at the Center for Automo- To learn more, please visit tive Research said that in 2000 the Michigan tool and die industry started to look for ways to combat advomas.com or call 248.989.4200. the hemorrhaging of jobs overseas. But there were no easy answers. Six of the biggest tool and die companies in Michigan approached Baron then to see how competitors could collaborate on best practices and core competencies without vio- lating antitrust laws. They came to the Center for Au- tomotive Research “looking for a safe haven to have a dialogue about the industry,” he said. “For several years, they funded us as a consultant to run their meetings, to be their spokesperson and go to automakers and clients and talk to them about best practices provid- ing tools.” In 2001, the Michigan Economic De- velopment Corp. paid CAR to come up with guidelines on how small tool and die shops could form coali- tions to survive what was becom- ing an industry debacle. Under the Michigan Tool & Die Recovery Zone Program, companies that formed alliances and adopted best practices in manufacturing would be eligible for abatements on real and personal property taxes and the Michigan Business Tax. “Here’s the ironic thing,” Baron said. “The six companies that started this, none of them qualified for the abatement because they The Seidman College of Business were too big.” M.B.A. Programs But more than 300 companies in Michigan did qualify for the abate- ments after they joined coalitions that sprouted up throughout the state after 2004. Karla Campbell, manager of state tax incentives for the MEDC, Leading with Results said the intent was to keep the tool and die industry healthy in Michi- gan during the rough patch. Tool 335 East Big Beaver and die is particularly prone to Whether you have recently graduated from college or are seeking new paying high personal property tax- professional opportunities, adding a Grand Valley State University M.B.A. Suite 100 es because the industry often uses degree to your resume makes you a better-prepared and more desirable expensive equipment. Troy, MI 48083 Allor, Kutches and Baron said the job candidate. Apply now to set yourself apart from the competition. tough times would have turned into Call (616) 331-7400 or visit gvsu.edu/grad/mba to learn more. a disaster without the tax abate- 20120813-NEWS--0011-NAT-CCI-CD_-- 8/10/2012 10:32 AM Page 1
August 13, 2012 CRAIN’S DETROIT BUSINESS Page 11 CRAIN’S MICHIGAN BUSINESS Business execs to help set A great CPA political action agenda isn’t born that way.
Consider Monica Silwanowicz, CPA. during W. Michigan forum At ShindelRock, Monica works alongside seasoned partners on engagements, allowing BY MATTHEW GRYCZAN CRAIN’S MICHIGAN BUSINESS FORUM FACTS her direct client contact and exposing her to a wide range of assignments. Mirroring the election-year cy- When: Sept. 12-13. cle, the 2012 West Michigan Policy Where: St. Cecilia’s Music As a ShindelRock team member, you’re Forum in Grand Rapids will feature Center, Amway Grand Plaza an address by Gov. Rick Snyder Hotel and JW Marriott Hotel in considered integral to the success of every and presentations by some of downtown Grand Rapids. client engagement, so we support your Michigan’s top business leaders Tickets: $425 per person for about statewide problems and so- two days, including admission professional growth through programs like to Sept. 12 main dinner. Dinner- lutions. only tickets $100 per person. mentorship, career goal identification and This year’s conference will be Registration, more information: attainment, and educational advancement. Sept. 12 and 13 at the St. Cecilia Mu- wmpolicyforum.com sic Center, the Amway Grand Plaza Because those three little letters after your Hotel and the JW Marriott Hotel name are just the beginning. downtown. Ⅲ Shantanu Sinha, president of The conference — launched in the Khan Academy, a nonprofit that 2008 by the Grand Rapids Area Cham- offers free online video lessons in ber of Commerce and spun off from math and other subjects. the chamber last year — has be- Ⅲ Bill George, former CEO of come a biennial networking event Medtronic Inc. and author of the Contact for Inquiries book True North. for hundreds of business execu- Maria Montie, CPA, MST, CVA, CFFA tives and influencers and a way to Ⅲ Robert Genetski, a Saugatuck- form an agenda for political action based economist and president of Managing Partner in the Legislature. Robert Genetski & Associates Inc. Conference organizers said they Sessions have been formed to www.ShindelRock.com | 248.855.8833 will use iPad tablet computers and address topics such as retaining 28100 Cabot Drive Ste. 102 | Novi, MI 48377 an app to poll participants on pub- talent in Michigan, affordable lic policy issues, provide feedback health care, promoting economic and disseminate information. The development, innovation and the conference will lend iPads to atten- state’s logistics systems. dees who don’t own the devices. Executives from chambers rep- Speakers scheduled to appear at resenting Grand Rapids, Kalama- the conference include: zoo, Saginaw, Lansing, Holland, Ⅲ Dan Gilbert, founder and chair- Grand Haven, Muskegon and Tra- man of Detroit-based Quicken Loans verse City serve on the forum’s Inc. steering committee along with Ⅲ Dick DeVos, CEO of the Grand leaders from higher education, in- Rapids-based Windquest Group. dustry and government. Ⅲ Dan Loepp, president and CEO Matthew Gryczan: (616) 916-8158; of Detroit-based Blue Cross Blue [email protected]; Twitter: Shield of Michigan. @mattgryczan
Demand: Complex is good ■ From Page 10 duced the price of our dies by one- They are very unique demands as third,” he said. “So if you do that opposed to even aerospace or med- math, the cost of tooling is down ical, which operate with totally dif- by two-thirds compared with the ferent criteria. year 2000 — the tooling industry is “If you give us something that’s getting almost two-thirds less rev- easy to make, it’s hard for us to be enue than it was 10 years ago.” globally competitive.” Some companies that have tried to strongly diversify have found Where we are headed they sold capacity to industries The adage that anything is possi- needing simpler dies. When the Reliable, modernized grid ble for those who don’t know what auto industry became busy again, they are talking about may apply they couldn’t take on more work. to those who think Michigan’s tool The shakeout over the past Energy is essential to the way we live, work and play. and die industry should become decade has left a smaller number less dependent on the cyclical na- of lean companies that understand ITC operates, builds and maintains the region’s electric ture of the automotive industry. the need to outsource some aspects “The problem is, tool and die of tool and die manufacturing to transmission infrastructure. We’re a Michigan-based company shops that have diversified have other countries, such as the fabri- had trouble making money in cation of machine details. working hard to improve electric reliability and increase electric some other industries,” Baron “My favorite quote is from an ex- said. “The unique thing about the ecutive at one of the major foreign transmission capacity throughout the Midwest. auto industry is that it uses dies automakers,” Baron said. “He said: that are incredibly complex. Some ‘We go to Michigan when we need guys don’t make much money on help or something breaks, because dies; they make it on the engineer- that’s where the engineering talent ing and changes to build. is — not because of low cost. Michi- www.itctransco.com “Complexity is what we are gan has the expertise to fix things.’ ” good at. We can do complex things Matthew Gryczan: (616) 916-8158; quickly, and we can get tooling [email protected]; Twitter: launched very rapidly in a factory. @mattgryczan 20120813-NEWS--0012-NAT-CCI-CD_-- 8/10/2012 11:03 AM Page 1
Page 12 CRAIN’S DETROIT BUSINESS August 13, 2012 CRAIN’S MICHIGAN BUSINESS CRAIN'S LIST: OUTSTATE PRIVATELY HELD Ranked by 2011 revenue
Company Revenue Revenue Worldwide Address ($000,000) ($000,000) Percent employees Rank Phone, website Top executive 2011 2010 change Jan. 2012 Type of business Meijer Inc. Hank Meijer $14,400.0 B $14,200.0 B 1.4% 60,000 Operates supercenters and grocery stores in Michigan, Ohio, Indiana, Illinois, and 1. 2929 Walker Ave. NW, Grand Rapids 49544 co-chairman and Kentucky. Engages in online retailing and operates gas stations and car washes (616) 453-6711; www.meijer.com CEO Alticor Inc. Steve Van Andel 10,900.0 9,200.0 18.5 20,000 Global company offering consumer products, business opportunities and 2. 7575 Fulton St. E., Ada 49355-0001 chairman manufacturing and logistics services in more than 80 countries and territories (616) 787-7565; www.alticor.com Gordon Food Service Dan Gordon 7,700.0 C 7,700.0 0.0 NA Food service distributor and grocery retailer 3. 333 50th St. SW, Grand Rapids 49501 chairman (888) 437-3663; gfs.com Dow Corning Corp. Robert Hansen 6,430.0 6,000.0 7.2 12,000 Silicon-based materials and technology 4. 2200 Salzburg Road, Midland 48640 president and CEO (989) 496-4000; www.dowcorning.com Jackson National Life Insurance Co. Michael Wells 4,184.8 3,309.4 26.5 NA Life insurance and retirement planning 5. 1 Corporate Way, Lansing 48951 president and CEO (517) 381-5500; www.jackson.com Dart Container Corp. Robert Dart 1,500.0 1,500.0 D 0.0 7,600 Foam cups and containers 6. 500 Hogsback Road, Mason 48854 CEO (517) 676-3800; www.dartcontainer.com Haworth Inc. Franco Bianchi 1,380.0 1,200.0 15.0 6,000 Office furniture 7. 1 Haworth Center, Holland 49423 president and CEO (616) 393-3000; www.haworth.com Alro Steel Corp. Alvin Glick 1,350.0 E 1,100.0 E 22.7 NA Metal servicing 8. 3100 E. High St., Jackson 49204 chairman and CEO (517) 787-5500; www.alro.com Serra Automotive Joseph Serra 992.1 818.5 21.2 NA Auto dealerships 9. 3118 E. Hill Road, Grand Blanc 48439 president (810) 694-1720; www.serrausa.com Diplomat Specialty Pharmacy Phil Hagerman 772.0 575.0 34.3 588 Specialty pharmacy 10. 4100 S. Saginaw St., Flint 48507 CEO (810) 720-4450; www.diplomatpharmacy.com
This list of privately held companies is an approximate compilation of the largest companies headquartered in Michigan outside of metro Detroit 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. Unless otherwise noted, information was provided by the companies. Actual revenue figures may vary. NA = not available. B Supermarket News estimate. C Company estimate from Forbes. ■ D Crain's estimate. An expanded version of this list can be purchased at crainsdetroit.com/lists. E Metal Center News.
LIST RESEARCHED BY BRIANNA REILLY
EXPERTISE AT YOUR FINGERTIPS You have a vision. Scott Shuptrine Interiors has top-notch designers. So let’s bring the two together and explore the possibilities to bring your home to life.
Our talented interior designers are ready to give you the personal attention you deserve using premium brands to create the perfect design and look that’s uniquely yours.
Come in today for your complimentary in-gallery consultation and bring luxury into your home with Scott Shuptrine Interiors — exclusively inside select Art Van Furniture locations.
SMART. TIMELESS. BEAUTIFUL.
Grand Rapids | 616-957-2369 Petoskey | 231-348-2013 Warren | 586-983-3036 Royal Oak | 248-549-9105 ScottShuptrine.com 20120813-NEWS--0013-NAT-CCI-CD_-- 8/10/2012 10:16 AM Page 1
August 13, 2012 CRAIN’S DETROIT BUSINESS Page 13 CRAIN’S MICHIGAN BUSINESS Food trucks hungry for growth; cities’ appetites vary
BY PAT SHELLENBARGER in popularity.” trucks. You will probably see some truck. It was a logical move. SPECIAL TO CRAIN’S MICHIGAN BUSINESS Vendors at a recent National food trucks on our property at the Clauhs had studied cooking in Ire- Restaurant Association show in B.O.B. in the very near future,” he land and had worked at a cooking Occasionally, someone will ap- Chicago encouraged the owners of said, referring to the Big Old school run by her mother and proach the window of Molly Clauhs’ bricks-and-mortar restaurants to Building in downtown Grand grandmother in Pennsylvania. food truck in downtown Grand consider using food trucks. That’s Rapids, which houses several of Her father wasn’t pleased. Rapids and ask for a hot dog. what Paul Lee, owner of The Win- his restaurants. “I did not pay for an Ivy League “I don’t have hot dogs,” she said. chester restaurant in Grand Rapids, Jeff Lobdell, president and ma- education so my daughter can “I will never have hot dogs.” Like- did when his What the Truck food jority owner of Restaurant Partners, work out of a truck,” she recalled wise hamburgers. truck hit the streets in 2010. which operates 16 West Michigan his saying. He eventually relented Today’s menu at her Silver Spork Jesse Hahn did the opposite. He restaurants, at first shared Gil- and helped her buy a 1997 Chevro- Food Truck features a lamb wrap began with his Trailer Park’d food more’s concern but changed his let step van previously owned by with Moroccan spices, carrot slaw, STEPH HARDING truck in Lansing and last fall mind. the Salvation Army. She found it on greens and date sauce; beer-battered Molly Clauhs hopes Grand Rapids will opened a bricks-and-mortar res- “It’s a free enterprise system,” he eBay, had it painted and updated, zucchini fritters; and orzo salad. change its ordinance restricting when taurant called Fork in the Road. The said, “and I support free enterprise. and the Silver Spork Food Truck Such fare is typical of food and where food trucks may operate. truck, which he still operates, was I’m for anything that’s going to hit the streets a year ago. trucks, a growing phenomenon na- of (private) property downtown cheaper to get into and allowed make Grand Rapids a better place.” With the help of five employees, tionally that is beginning to catch and pay rent on it,” she said. “I’d him to earn enough money and de- He and other supporters con- Clauhs’ food truck is out most days on in Michigan. like to see the city allow food velop a following for his tradition- tend that food trucks add charac- April through November at farm- While food trucks are becoming trucks in the public right of way. I al restaurant. ter and sophistication to urban ers markets and art fairs. She may more common in urban parking think it will happen.” “The food truck is our calling communities. The trucks first be- offer it for wedding receptions. lots, farmers markets and art fairs, In Detroit, Anthony Curis and card,” he said. “It’s obviously a lot came popular in Los Angeles, San “I’m amazed at how difficult it is they are not without controversy. Doug Runyon, owners of El Guapo, less of an investment, a lot less of a Francisco and New York City, to have a business, like taxes and In June, the Grand Rapids City Coun- spent a year working with City risk than a restaurant.” then spread to cities such as so much paperwork,” she said. “I cil — to balance the interests of the Hall to become the first legitimate Even those who initially op- Austin, Texas; Boston; Portland, consider this like a graduate de- food truck operators and tradition- food truck in the city. Curis visited posed food trucks are softening Ore.; Philadelphia; and Seattle. gree — a master’s in food truck.” al restaurateurs — approved an or- City Hall nearly 60 times over six their stand. Gregory Gilmore, CEO Clauhs, 24, earned a degree in She’s not getting rich. “This dinance restricting when and months to secure a temporary six- of The Gilmore Collection of 24 West hotel administration from Cornell year we hope to make a little profit where food trucks may operate. month special-use permit. Michigan restaurants, favored the University and worked as an — just a little bit,” she said. They must obtain a temporary Food trucks are “kind of a Grand Rapids ordinance restrict- innkeeper for a while. But “it was- “I don’t think it will ever be the use permit, may not park on the trendy thing right now,” said Adri- ing food trucks. n’t my thing,” she said. way it is in California, where you public right of way and must close ane De Ceuninck, vice president of “It was more about the fairness After she and her boyfriend, who can send out a tweet and have a by 10 p.m. Sunday through Thurs- marketing and communications at and the fact that they can pull up is in food marketing, moved to line of 300 people show up,” said day and by 11 p.m. Friday and Sat- the Michigan Restaurant Association. in front of a restaurant, serve 100 Grand Rapids last year, “I decided I Clauhs, who recently opened a urday. Although she did not know how meals, then pull away and pay no really wanted to have a business,” cooking school in Grand Rapids. Clauhs was not satisfied. “I many are operating in Michigan, (property) taxes,” he said. she said. “I wasn’t sure what.” But, she added, “food trucks are don’t want to be parked on a piece “I’d definitely say they’re growing But now: “I personally love food Her uncle suggested a food here to stay.”
201220012 WEST WEST MICHIGAN MICHIGAN POLICY POLICY FORUM FORUM 20120012 WESTDOWNTOWN MICHMICHI GRAND RAPIDS
SPEAKERS INCLUDE:
KEYNOTE FROM Gov. Rick Snyder Bill George, former CEO of Medtronic and Author of “True North” Shantanu Sinha, President of Khan Academy Dr. Robert Genteski, Economist Two days of agenda-setting and more…. policy discussions, including: SEPTEMBER 12 -13, 2012 ALSO SPECIAL APPEARANCE BY: ST. CECILIA MUSIC CENTER AMWAY GRAND PLAZA HOTEL Dick DeVos, CEO Windquest, Co- chair Grand Action Committee
Dan Gilbert, Chairman Quicken Loans, TURING Principal at Detroit Venture Partners
Dan Loepp, CEO Blue Cross Blue Register now at wmpolicyforum.com, or by Shield of Michigan calling 616.485.6303 FEA 20120813-NEWS--0014-NAT-CCI-CD_-- 8/10/2012 10:16 AM Page 1
Page 14 CRAIN’S DETROIT BUSINESS August 13, 2012
CALENDAR Find your next TUESDAY MONDAY customer in the AUG. 14 AUG. 20 Emerging Leaders: Professional Photos Mixin’ it up in the Motor City. 3-5 p.m. at the Fillmore. 5:30-7:30 p.m. Inforum, The Adcraft Club of Detroit, Detroit Regroup Advisors Inc., Hire a Wife, Radio Advertising Group and broad- Middle East. Women’s LifeStyle magazine, CNI, Lar- casters from across the state. Amnesia ry Peplin Studios. With Courtney Lounge, MotorCity Casino Hotel, Morales Hofmann, COO, MCM Staffing. Detroit. Free. Contact: Jennifer Pres- Fillmore Theatre, Detroit. Members $50 lar, (517) 484-7444; email: preslar photo and networking, $20 networking @michmab.com; website: www. only, nonmembers $60 photo and net- adcraft.org. Automation Alley working, $25 networking only. Contact: Dana Armenteros, (347) 907-1105; email: [email protected]; website: COMING EVENTS can take www.inforummichigan.org. Business Leader of the Year. 6-10 p.m. Aug. 22. Harvard Business School Club Advanced Negotiation Skill Building. 9 of Michigan. Honoring Nancy Schlicht- you there. a.m.-4:30 p.m. Engineering Society of ing, CEO, Henry Ford Health System. Detroit. Learn about complex multipar- The Atheneum, Detroit. $125. Contact: ty transactions based on U.S. and inter- Maria Chasins or Barbara Fornasiero, national case studies. ESD headquar- (248) 651-7536; email: [email protected]; ters, Southfield. $75 ESD members; $99 website: www.hbsmi.org. nonmembers; $158 to attend and join ESD at a 50 percent discount on first Selling Smart Workshop — Communi- year’s membership. Contact: Leslie cating Value with Questions. 9-11 a.m. Smith, (248) 353-0735, ext. 152; email: Sept. 5. Ann Arbor Spark. With Dave [email protected]; website: www.esd.org. Bilbrey, sales trainer, Sales Force Ser- To join us on our upcoming vices; John Mills, founder and presi- Ann Arbor OpenCoffee. 8-9:30 a.m. Ann dent, Simuquest; and Joe Marr, presi- trade mission to Qatar and Arbor Spark. Spark Central, Ann Ar- dent and CEO, Sandler Training Ann bor. Free. Contact: (734) 761-9317; web- Arbor. Spark Central, Ann Arbor. United Arab Emirates, site: www.annarborusa.org. Free. Contact: (734) 372-4071; email: [email protected]; website: visit automationalley.com www.annarborusa.org. WEDNESDAY or call 1-800-427-5100. AUG. 15 Fireside Growth Story Series. 5-7 p.m. Sept. 5. Macomb-OU Incubator. With Entrepreneur Seminar Series: Beyond Josh Linkner, founder, chairman, Tribal Knowledge — Understanding How ePrize; CEO and managing partner, We Work. 9-11 a.m. City of Rochester Detroit Venture Partners. Macomb- Hills. With Marcelino Sanchez, owner, OU Incubator at Velocity, Sterling SmartChange. Rochester Regional Heights. Free; registration required. Chamber of Commerce, Rochester Contact: Joan Carleton, (586) 884-9324; Hills. Free; reservations required. Con- email: [email protected]; website: tact: (248) 651-6700; website: rrc-mi.com. www.oakland.edu. 20120813-NEWS--0015-NAT-CCI-CD_-- 8/10/2012 10:17 AM Page 1
August 13, 2012 CRAIN’S DETROIT BUSINESS Page 15
Monthly Mexico WHERE MICHIGAN DOES BUSINESS
and acoustics to cockpits, floor consoles, he U.S. and Mexico share a 2,000-mile border and bil- doors, headliners and overhead systems, in lions of dollars in trade each year. Each World Watch addition to other interior and exterior com- T Mexico currently is the third-largest U.S. trading Monthly features a dif- ponents. partner, after China and Canada. U.S. trade with Mexico to- ferent country. If you Top executives: Juventino Gutierrez, vice taled $500 billion in 2011; exports were $223 billion, and im- know of a Michigan president of Mexican operations ports were $277 billion, according to the Office of the United company that exports, States Trade Representative. manufactures abroad or Since the implementation of the 1994 North American has facilities abroad, Inteva Products LLC Free Trade Agreement, Mexico’s share of U.S. imports has email Jennette Smith, Based: Troy increased from 7 percent to 12 percent. managing editor, at jh- Federal-Mogul’s Puebla production facility Mexico operations: Four facilities located The second-largest economy in Latin America, Mexico is [email protected]. in Heroica Matamoros, Ciudad Juárez and recovering from a brief but very deep recession. Michigan Employees: 4,180 Puebla companies have a range of operations there for automotive Products: Pistons, ignition products, seal- COMING UP Employees: 2,300 and other types of manufacturing. ing systems, bearings, friction products, Products: Latching systems, door handles, Crain’s monthly World Watch report showcases compa- September: Italy wipers, steering and suspension interior systems such as door trim, and roof nies leading the way in international business, as well as October: Spain/Portugal Top executive: Miguel Garcia, director gen- systems those expanding their global operations. eral Top executives: William Hanna, vice presi- dent and executive director of closure sys- General Motors Co. tems; Steve Galle, vice president and global Based: Detroit director of operations Ciudad Juárez UNITED STATES Mexico operations: Toluca de Lerdo, Ramos More information: Inteva operates two Arizpe, San Luis Potosí, Silao de la Victoria manufacturing plants in Heroica Mata- Employees: 13,600 moros and a manufacturing complex in Hermosillo Products: Products made in Mexico in- Puebla. Its Mexico technical center is in clude the Chevrolet Captiva Sport, Cadillac Ciudad Juárez. Nuevo Laredo SRX, Chevrolet Avalanche and Chevrolet Aveo. Metaldyne Corp. Saltillo, Heroica Matamoros Based: Plymouth Ramos Arizpe Monterrey Grede Holdings LLC Mexico operations: Ramos Arizpe Based: Southfield Employees: 325 MEXICO Mexico operations: Two iron foundries in Products: Powder metal connecting rods, San Luis Potosí Monterrey machined connecting rods, machined vibra- Employees: 850 tion dampers Santiago de Querétaro Guadalajara Tepotzotlán Products: Grede’s NovoCast facility, pur- Top executive: Thomas Amato, member of chased last year, produces ductile iron cast- the board of managers Toluca de Lerdo Mexico City Puebla ings for the transportation and industrial markets. Grede’s Teknik facility, also pur- chased last year, produces both gray and Plante Moran PLLC BELIZE ductile high-quality iron castings for the Based: Detroit transportation and industrial markets. Mexico operations: Monterrey GUATEMALA HONDURAS Gray and ductile iron are combinations of Employees: 30, including the employees metals used in many automotive compo- from co-partner MXGA Affinia Group Inc. ation, CFI Logistica, is headquartered in nents, such as drum brakes and brake discs. Products: Auditing, accounting, tax and Guadalajara, with sales offices in Monter- Top executive: Raul Lopez, managing di- consulting services; a major focus is help- Based: Ann Arbor rey, San Luis rector for Grede de Mexico ing foreign companies establish and operate Mexico operations: Affinia has two divi- Potosí and in Mexico. sions in Mexico. The filtration group in the Mexico City. Harvey Industries LLC Top executives: Alejandro Rodriguez, Mex- state of Coahuila de Zaragoza employs more Terminals are ico country manager; Scott Sneckenberger, than 450 people, and the brake group em- in Torreón, Based: Livonia global services partner in charge of Latin ploys 900 people in Mexico. Gomez Pala- Mexico operations: Nuevo Laredo American practices Employees: 1,350 cio, Saltillo, Employees: 500 Products: Filtration, brake products in- Ramos Products: Intake manifolds (engine compo- cluding brake disc pads, hydraulics, heavy- nent that takes air from outside the vehicle More than 100 Con-way Arizpe, Nue- TI Automotive Inc. duty linings and other products trucks a day cross the World vo Laredo, and sends it to the individual cylinders), Top executives: Vicente Alejandro Lopez Trade International Bridge Monterrey, pump housings, engine covers, aluminum Based: Auburn Hills Guisa, general manager for the Mexico between Mexico and Texas. Aguas- sand castings, die castings Mexico operations: Mexico City, Reynosa, brake division; Luis Eduardo Rodriguez, calientes, San Top executives: Gabriel Arredondo, gener- San Luis Potosí HR manager for much of the brake division; Luis Potosí, Guadalajara, Mexico City, al manager; Jerome Harvey, CEO Employees: 2,500 Chuy Martinez, general manager for the Toluca de Lerdo, Cuernavaca and Puebla. Products: Fluid-carrying systems includ- Mexico filtration division; Alexandra Ortiz, Employees: 62 IAC Group ing brake and fuel lines, powertrain compo- HR manager for the Mexico filtration divi- Products: Transport vans, flatbeds, small nents, fuel tank systems, fuel pumps and sion and large trailers, straight trucks, trailer Based: Southfield modules, and HVAC components and sys- sublease, local distribution, warehousing, Mexico operations: Seven IAC manufactur- tems Chrysler Group LLC crating and local cartage shipments, in ad- ing locations in Hermosillo, Monterrey, Top executives: Alejandro Veraza, general dition to intra-Mexico shipping Ramos Arizpe, Santiago de Querétaro, Tolu- manager FCS Mexico City; Steve Taylor, Based: Auburn Hills Top executives: Roberto Lopez, vice presi- ca de Lerdo, Saltillo and Puebla managing director HVAC North America; Mexico operations: Chrysler de México dent of sales Employees: 5,000 Luis Alvarado, director of operations HVAC S.A. de C.V. has six manufacturing plants in More information: Track-and-trace capabil- Products: All seven plants are dedicated to North America; Guillermo Chacon, plant Saltillo and Toluca de Lerdo. ities, 24/7 surveillance and relationships the manufacture of vehicle interior compo- manager, San Luis Potosí Employees: 7,970 with Customs Trade Partnership Against nents and systems ranging from flooring — Compiled by Ryan Kelly Products: Include the Dodge Journey, Fiat Terrorism 500, Fiat Freemont, body panels for the Dodge Journey, Ram 1500, 3.6-liter V-6 Pen- tastar engine and the 5.7-liter V-8 Hemi en- Federal-Mogul Corp. gine. Based: Southfield Top executive: Fred Díaz, president and CEO Chrysler Mexico & Ram Trucks Mexico operations: Manufacturing sites in Ciudad Juarez, Los Reyes Acaquilpan, Mex- ico City, Puebla, Naucalpan de Juarez and Con-way Freight Inc. Tepotzotlán; distribution center in Mexico Based: Ann Arbor City; administrative offices in Monterrey Mexico operations: Con-way’s Mexico oper- and Guadalajara Harvey Industries’ Nuevo Laredo plant 20120813-NEWS--0016-NAT-CCI-CD_-- 8/10/2012 10:24 AM Page 1
Page 16 CRAIN’S DETROIT BUSINESS August 13, 2012 Extra
People