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www.crainsdetroit.com Vol. 27, No. 4 JANUARY 24 – 30, 2011 $2 a copy; $59 a year
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Page 3 One D dissolves, hands off Snyder stirs DRIC jobs debate projects to partners
BY BILL SHEA highly attractive economic development One of the leading justifications for CLOSER LOOK CRAIN’S DETROIT BUSINESS proposal” that includes the $5.3 billion DRIC, beside bolstering trade and safety Detroit River International Crossing, which redundancy, is what its proponents say Background and Republican Gov. Rick Snyder’s sur- he says won’t saddle Michigan with debt. will be the creation of 10,000 construction more: Bridge prise endorsement last week of the pro- DRIC has been a contentious proposal, jobs on the Michigan side of the river facts, figures and forecasts, posal to build a new bridge over the De- drawing ongoing legal challenges from and preservation or creation of 25,000 to Page 20 troit River is expected to renew the Ambassador Bridge owner Manuel “Mat- 40,000 other jobs once the span is com- Funding: Snyder debate over the merits of the project — ty” Moroun — who says the new bridge plete. deal with including highly touted job forecasts would be unfair government competition A 2008 online FAQ about the DRIC Washington used to promote the bridge’s necessity. and unneeded because border traffic re- study offers the warning that if no new could drive In his first State of the State address mains at half its 1999 peak — and skepti- border crossings are built: “The econom- project, Page 20 since winning the job in November, Sny- cism from both infrastructure industry in- der promised a “totally revamped and siders and Republican lawmakers. See DRIC, Page 20
Breakthrough for Broderick: MEDC plans Financing revives project
Inside to place staff IDEA Detroit conference aims to get wheels turning, around state Page 5 Goals: Efficiency, Crain’s Lists coordination BY AMY LANE Livingston and Washtenaw CRAIN’S DETROIT BUSINESS in time Newly named Michigan Economic counties’ largest employers, Development Corp. President and Pages 12, 13 CEO Michael Finney said the state’s revamped strategy for eco- 5 years later, prep for big game yields dividends nomic development includes plac- BY NANCY KAFFER ing MEDC staff in offices spread This Just In around the CRAIN’S DETROIT BUSINESS state. The years leading up to Super Texan has plans for Novi’s In a Friday in- Bowl XL were a flurry of activity Twelve Mile Crossing terview after as business and civic leaders pre- Gov. Rick Sny- pared Detroit for the internation- A Texas real estate in- der’s State of the al crowd that would attend the vestor has bought Twelve Mile State speech on game. Crossing at Fountain Walk, the Wednesday, From 2000, when the city’s bid to 77-acre, bank-owned retail Finney said he host the game was successful, until and entertainment complex hopes to have the weekend of the game in 2006, a in Novi. eight to 10 such Finney team of more than 400 metro De- The property, built for $72 locations by troiters worked to prepare the city. million in 2002 by Newport year’s end as part of the MEDC’s Five years later, some of the Beach, Calif.-based PLC Com- improvement plans. The staff team’s work endures — namely, a mercial Inc., went through a would be housed in offices of local cleaner downtown, fewer derelict 2005 Chapter 11 bankruptcy or regional groups that promote structures, a crop of new down- before it was sold to Chicago- economic development. town businesses and a greater fo- based Arthur Hill & Co. to be re- Other priorities include improv- cus on downtown Detroit by some developed. ing business retention efforts, in the business community. After Arthur Hill default- serving as an information best- Preparation for the Super Bowl ed on its loan, the lender — practices clearinghouse, support- brought together a team with a Horsham, Pa.-based Capmark ing entrepreneurs and broadening massive to-do list of pregame Financial Group — took the the state’s 21st Century Jobs Fund. work, led by Super Bowl XL host property over and has oper- Finney, also group executive for committee ated it since July. economic growth, said embedding chairman San Antonio-based Spigel MEDC staff to work full time in lo- Roger Penske. COURTESY OF DOWNTOWN DETROIT PARTNERSHIP cations around the state will en- Successful See This Just In, Page 2 “Wayfinder” signs installed for Super Bowl XL in 2006 are still in place — now See MEDC, Page 19 management of maintained by Clean Downtown crews, also part of the Super Bowl legacy. the pregame preparations said Susan Sherer, who prepared Lasting legacies also counted as the city’s Super Bowl bid package one of the and served as executive director Highly visible is the Motown brightest spots of the Super Bowl XL host com- Winter Blast festival, which in the tenure of mittee, now CEO of The Heat and launched a year before the game Sherer disgraced for- Warmth Fund. “We took our obliga- in an attempt to create density mer Detroit Mayor Kwame Kil- tions and said, ‘This is what we’re downtown. patrick. obligated to, this is what we want “For the physical environ- NEWSPAPER “There are no instructions,” to do.’ ” See Super Bowl, Page 18 20110124-NEWS--0002-NAT-CCI-CD_-- 1/21/2011 5:57 PM Page 1
Page 2 CRAIN’S DETROIT BUSINESS January 24, 2011
nology incubator center at the energy systems at 24 school dis- Arena, home of the Wolverines’ Loft owner Midtown THIS JUST IN University of Michigan’s North Cam- tricts. The projects have generated men’s and women’s basketball pus Research Complex. more than 40,000 kilowatt-hours of teams. files for Chapter 11 ■ The 16,000-square-foot facility solar and wind power. The expansion will add about From Page 1 Midtown Development Group Inc. officially opened last week on the — Jay Greene 63,000 square feet for new fan en- has filed for Chapter 11 bankrupt- Properties closed on the deal Fri- grounds of the 174-acre, 30-build- trances, additional retail spaces cy protection in U.S. Bankruptcy day, said owner Stanley Spigel. He ing former Pfizer Inc. campus in and ticket areas, as well as a pri- Caraco wins drug fight, Court, Eastern District of Michigan. would not disclose the price but Ann Arbor. It will offer space for vate club space, the university Midtown Development owns said it was purchased in cash. up to three years to companies but appeal expected said in a statement. and operates three Midtown De- With 6 million square feet of spun off from UM by the school’s All seating will be replaced and A federal judge in Detroit has troit loft projects: Willys Overland property owned across the coun- tech transfer office. given Caraco Pharmaceutical Labo- improvements will be made to ac- try — and no debt on any of it — The first tenant is Life Magnetics cess for people with disabilities. Lofts, Springfield Lofts and Stuber- ratories news that could pave the Stone Lofts. Spigel said Fountain Walk is the Inc., a medical-diagnostics compa- way for the company to market a The project will be funded by type of property that can be very ny. Four other companies are ex- the athletic department budget Midtown lists four creditors on generic version of the Type 2 dia- court documents: Bank of America, successful when purchased at a pected to move in over the next betes drug Prandin. and gifts, the school said. low price. He said the retailers, few weeks — Phrixus Pharmaceuti- Bloomfield Hills-based TMP Ar- for a $1.3 million loan; the Detroit A spokesman for Novo Nordisk Economic Growth Corp., for a restaurants and entertainment cals Inc., EngXT LLC, 3D Biomatrix A/S, the Denmark-based pharma- chitecture Inc. and Denver-based $300,000 loan; Invest Detroit, for a tenants have high sales and the LLC and Civionics LLC. The incuba- ceutical company that holds the Sink Combs Dethlefs will design $20,000 loan; and the Wayne center is in a strong location near tor is expected to house about 15 patent for Prandin, said the com- the project. They previously de- County treasurer, for $35,452 in 12 Mile and Novi roads. startups, which will have access to pany would appeal the decision signed the $23.2 million Basket- taxes. Anchor tenants are Dick’s Sport- three mentors in residence provid- by Judge Avern Cohn of the U.S. ball Player Development Center, The company has between ing Goods, Great Indoors, Emagine ed by the tech transfer office. District Court for the Eastern District which opens this year. $1 million and $10 million in as- cinema, Lucky Strike and Bar Louie. — Tom Henderson of Michigan. The regents also unanimously sets, according to court docu- “We’re getting this at a good After a six-year legal battle, approved a $20 million plan to in- ments. price, so we’ll be able to work Energy Works Michigan wins Cohn ruled that Novo’s patent on stall high-definition video score- with tenants and be very compet- both Prandin and PrandiMet is boards at Michigan Stadium, President Bob Slattery declined itive,” he said. “And since there’s $4.4M schools contract invalid. Caraco had challenged Crisler Arena and Yost Ice Arena. to comment. no lender involved, I can have a — Bill Shea — Nancy Kaffer Ann Arbor-based Energy Works the validity of the patent. lease out to someone tomorrow.” Michigan has been awarded a While the efforts are ongoing, Spigel expects to fill two vacant $4.4 million contract to promote Caraco said it is unable to predict buildings and find users to build CORRECTIONS energy efficiency and assist in when manufacturing and distrib- new buildings on vacant land. Ⅲ A story on the state’s new Venture Michigan Fund in the Jan. 17 issue the installation of solar photo- ution will resume in Detroit. Capmark was represented by should have said the size of the 21st Century Investment Fund was voltaics, solar thermal and wind — Jay Greene Southfield-based NAI Farbman. $109 million. systems in 90 Michigan schools. — Daniel Duggan Ⅲ A story on Page 4 of the Jan. 17 edition erroneously stated that most The three-year contract was Crisler Arena renovations of the claims in a 2010 art buyers’ lawsuit against Park West Galleries awarded by the Michigan Public Inc. were dismissed. Two of the claims were dismissed, while a third Service Commission. lead UM athletic projects UM tech incubator gets was limited in scope, but another nine of the 12 original plaintiff During the past two years, the The University of Michigan Board claims survive the ruling. Also, the story should have attributed the 1st tenant; 4 on the way Michigan Renewable Schools Pro- of Regents last week approved the ruling to Oakland County Circuit Judge Wendy Potts. The first tenant has moved into gram, operated by Energy Works, $52 million second phase of reno- Ⅲ The Other Voices column on Page 6 of the Jan. 17 issue gave an in- the new Venture Accelerator tech- has helped to install 30 renewable vations and expansion of Crisler correct first name for author Burton Zipser.
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January 24, 2011 CRAIN’S DETROIT BUSINESS Page 3 One D dissolves; work goes on Focus: Innovations Detroit Metro Convention & Visitors Other groups take on scorecard, projects Bureau; Detroit Regional Chamber; the former Detroit Renaissance Inc., BY SHERRI WELCH the latest version today. Interest in One D’s collaborative which is now Business Leaders for CRAIN’S DETROIT BUSINESS Data Driven Detroit launched as work has steadily increased among Michigan; New Detroit; and the Unit- a foundation-funded nonprofit cen- nonprofits, One D Chairman Edsel ed Way for Southeastern Michigan. In the spirit that it was created, ter for data collection and analysis Ford II said in a statement. The Southeast Michigan Council of One D, a 4-year-old collaboration of in late 2009 under director Kurt Given that, the constraints local Governments later joined the collab- civic groups working on regional Metzger. Its mission is to trans- funders face and the spirit in oration, and several local founda- revitalization, has form data into information that which One D was established, “It tions stepped up with funding, in- RANKINGS dissolved because will drive better decision-making. is the appropriate time to transi- cluding the Community Foundation other groups are One D also has moved two other tion the work to our partners, who of Southeastern Michigan, Hudson- 2010: How equipped to carry initiatives on corporate philan- can take it further, faster than One Webber Foundation, Kresge Founda- Accuri founder’s new spinoff: Detroit fared, on its work. thropy and talent attraction/reten- D can.” Page 21 tion, McGregor Fund and Skillman The collabora- tion to groups in those areas. Ford convened One D in the fall Foundation. New lube technology, Page 9 tion has trans- One D Executive Director Kat of 2006 to bring together parallel ef- After bringing together duplica- ferred responsibility for its annual Owsley has taken a position with forts to revitalize the region and to tive efforts such as Detroit Re- regional scorecard to Data Driven the Troy-based Kresge Foundation, encourage collaboration among naissance’s “Road to Renais- Detroit, which helped develop the working on Detroit initiatives the group’s founders: the Cultural Company index scorecard and planned to release there. Alliance of Southeastern Michigan; See One D, Page 21 These organizations appear in this week’s Crain’s Detroit Business: Accuri Cytometers ...... 9 AFA Krause ...... 17 Associated Builders & Contractors of SE Michigan 20 Law firms Automation Alley ...... 19 Bank of America ...... 19 Blue Cross Blue Shield of Michigan ...... 16 Business Leaders for Michigan ...... 3 Chase Bank ...... 19 grow but Cornerstone Development Authority ...... 4 Cultural Alliance of Southeastern Michigan ...... 3 Data Driven Detroit ...... 3 Detroit Economic Growth ...... 18 don’t hire Detroit Metro Convention & Visitors Bureau ...... 3 Detroit Regional Chamber ...... 3 Detroit River International Crossing ...... 1 Dickinson Wright ...... 21 Domino’s Pizza ...... 17 in 2010 Dover Realty Advisors ...... 19 Downtown Detroit Partnership ...... 18 BY CHAD HALCOM Dykema Gossett ...... 21 CRAIN’S DETROIT BUSINESS Ford Motor ...... 10 Fusion Coolant Systems ...... 9 There never has been a year Goodwill Industries ...... 18 like 2010 at Howard & Howard At- torneys PLLC, Greater Detroit Building & Construction Council. . . 20 at least since Henry Ford Physician Network ...... 16 Mark Davis Howard & Howard Attorneys ...... 3 became its Invest Detroit ...... 19 president JC Beal Construction ...... 19 Jet’s America ...... 17 JOHN SOBCZAK and CEO. Fred Beal, president of JC Beal Construction Inc., worked with building owner Mike Higgins in 2005 to jump-start The Royal Johnson Controls ...... 8 redevelopment of the David Broderick Tower in Detroit. Oak-based Kraemer Design Group ...... 19 business law Lawrence Technological University ...... 11 firm added Marketing Resource Group ...... 20 1,021 clients Medical Network One ...... 16 Davis during the Michigan Department of Transportation ...... 11 Breakthrough for the Broderick year and grew revenue to nearly Michigan Economic Developers Association ...... 19 $45 million, up from $37.9 million Michigan Economic Development ...... 1 in 2009 and around $25 million in Michigan Nonprofit Association ...... 21 New financing options revive long-stalled project 2005. It was the largest year-over- Miller Canfield Paddock & Stone ...... 21 year improvement at the firm in Motown Construction Partners ...... 19 BY DANIEL DUGGAN “This has been a long time com- recent history. Revenue per at- North American International Auto Show ...... 8 CRAIN’S DETROIT BUSINESS ing,” said Mike Higgins, whose torney also increased over the One D ...... 3 In 1986, nothing family has owned the building previous year. Paramount Precision Products ...... 10 While most redevelopment pro- “ since 1974. “And it illustrates how Drivers of growth included a Penske ...... 18 jects are in the works for two or other than the roof difficult it is to finance a project recovering U.S. auto industry Tooles Contracting Group ...... 4 three years, the redevelopment of like this. It’s only possible with the (Howard & Howard handles Trillacorpe Construction ...... 4 the David Broderick Tower in De- antennas and the new financial tools available in the some real estate work for Chrysler University of Michigan ...... 9 troit has been in progress for 27 past couple years.” Group LLC), a mild pickup in years. restaurant were Built in 1928, the Broderick Tow- mergers and acquisitions and re- Known most recently for a er spent more than 50 years as an newed business interest in pro- Department index stalled 2005 plan, the 35-story leased. office building. It comprised most- tecting intellectual property. building has a notable history of ” ly small offices used by dentists The new year is also off to a BANKRUPTCIES ...... 4 derailed renovation plans. Mike Higgins, and doctors, a much different lay- strong start, Davis said. BUSINESS DIARY ...... 14 The idea of turning the historic building owner “I’d be really surprised if we out from the typical 30,000 square CALENDAR ...... 14 office building into residential did another ($7 million growth feet of open space on each floor in a CAREERWORKS ...... 15 space dates back to 1984 with a pro- modern building. year) again,” he said. “But I’m ject that fell through by 1986. In spring 2012 for the building’s new The Higgins family operated it pleasantly surprised by the vol- CLASSIFIED ADS ...... 16 fact, nearly one-third of the 83- use as a 127-unit apartment com- at about 50 percent occupancy un- ume of transactions in the KEITH CRAIN...... 6 year-old building’s life has been plex, the building’s owners and de- til 1984, Higgins said, when the fourth quarter, carrying over LETTERS...... 6 velopers are breathing a sigh of re- spent vacant. MARY KRAMER ...... 7 With occupancy planned by lief. See Broderick, Page 19 See Law firms, Page 21 OPINION ...... 6 OTHER VOICES ...... 6 All in the family Nominate someone PEOPLE ...... 15 Crain's is always up to something when it comes THIS WEEK @ See what else is happening at Crain's sister RUMBLINGS ...... 22 publications with our Best of Crain's section on the to recognizing achievers. Check upcoming WWW.CRAINSDETROIT.COM Web at crainsdetroit.com/section/BestOfCrains deadlines at crainsdetroit.com/section/nominate STAGE TWO STRATEGIES ...... 4 WEEK ON THE WEB ...... 22 20110124-NEWS--0004-NAT-CCI-CD_-- 1/21/2011 5:59 PM Page 1
Page 4 CRAIN’S DETROIT BUSINESS January 24, 2011
UM-Dearborn and Crain’s Detroit Business present StageTwo Strategies Sustainability in A weekly look at problem-solving by growing companies. Health Care Management TOOLES CONTRACTING GROUP LLC Join us as we explore best practices, standards and initiatives launched by the health care industry to achieve sustainability. Location: Detroit Solution: Tooles developed a old, and we didn’t have a lot of Description: General contractor, partnership with an established processes in place, so we were try- equipment installation and con- federal contractor. ing to both create them and also William R. Alvin Breakfast and Discussion struction management company. “We were able to partner with get the new and current staff to Health Alliance Plan February 8, 2011 President: Damon Tooles Jacobs Engineering Group (in Arling- use them,” Tooles said. Vernice Davis Anthony 7:30 a.m.–10:00 a.m. Founded: 2006 ton, Va.),” Another problem was the finan- Greater Detroit Area Health Council Fairlane Center North Employees: 40 Tooles said. cial burden associated with bring- Our Panelists Joseph T. Aoun Quad E Revenue: $38 million in 2010, “We worked on ing on new staff. with $46 million projected in 2011. a Federal Aviation “I was saying let’s just do more Nuyen,Tomtishen and Aoun, P.C. 19000 Hubbard Drive Problem to be solved: After four Administration fa- work with less employees,” Dearborn, MI 48126 Malcolm Henoch, MD years of getting steady work, cility in At- Tooles said. “Well, I finally said Oakwood Healthcare $35 per person Tooles Contracting Group LLC real- lanta, where we we can’t do that anymore. You’ve Daniel Wakeman ized it no longer could rely on the completed $4 got to go out and hire the right St. Luke Hospital same industry sectors and needed million worth of people, enough people, and ex- to go after federal contracts. work.” pend those dollars.” Moderated by: Mary Kramer, The FAA job, Expert opinion: Larry Goss, COO Publisher of Crain’s Detroit Business Tooles Tooles Contracting Group’s Tooles said, led of Bingham Farms-based Trilla- clients include General Motors Co., to work with Jacobs for Amtrak in corpe Construction LLC, said he’s For more info or to register online, Ford Motor Co., DTE Energy Co. and 14 states on 163 sites where Tooles not surprised that Tooles’ federal visit umd.umich.edu/sustainability_lecture FedEx. One of its more recent pro- Contracting has the design-build contract work was predicated on jects was working with Bingham contract. finding the right partner. Trilla- Farms-based Sachse Construction “We now have the résumé to do corpe also specializes in govern- and Development Corp. to serve as the work,” Tooles said. ment contracts. general contractor for the $18 mil- Risks and considerations: Tooles He said past performance with lion in renovations and interior Contracting closed its Las Vegas the federal government is one of design work in the Guardian operation in early 2010, which re- the most important ingredients Building in Detroit. duced its operating costs by about for success. But “we wanted to start pursu- 40 percent. “Until you do that, you’re going ing some federal government But when the company jumped to have a lot of challenges to win work,” said Damon Tooles, presi- to federal contracting, payroll and new work,” Goss said. “Tooles dent and CEO. “We did the (U.S. personnel expenses jumped to has found out that federal con- Small Business Administration) cer- about 60 percent of its budget. tracting is all about strategic part- tification, but one of the things “We’ve had growing pains,” nerships — strategic alliances are that the government looks at is Tooles said, “but these have been important.” past performance, and we didn’t good growing pains.” Trillacorpe’s expansion fol- have that.” Tooles found that a significant lowed a similar path, Goss said. Tooles needed to create a work problem was bringing on 25 em- “We started in 2007, and we’ve history so his company could pur- ployees in six months and inte- liked to say we’ve cracked the code sue federal government work as a grating them into its workforce. in federal contracting,” he said. general contractor. “The company is just four years — Shawn Wright
If your company has recently made a tough business decision, contact Jennette Smith, deputy managing edi- tor, at [email protected]. For more news and information, visit crainsdetroit.com/getemail to receive Crain’s twice-monthly e-mail dedicated to growing companies.
Southfield development authority targets health care biz
BY CHAD HALCOM Dialysis Center and a CSL Plasma said. That could include insurers, CRAIN’S DETROIT BUSINESS center. medical-device manufacturers and The authority also expects a even information technology or Southfield’s Cornerstone Develop- physical-therapy office to move to staffing companies with a health ment Authority today will launch its the district soon. care industry focus, as opposed to Southfield Healthcare Corridor, Aceves said more than 350 adding new nonprofit hospital cen- an alliance of health care employ- health care employers have loca- ters. ers that will try to court for-profit tions in Southfield. Chad Halcom: (313) 446-6796, businesses to the redevelopment The corridor will collaborate [email protected] district. with Oakland County’s Medical Executive Director Al Aceves Main Street Program, an alliance said the authority is forming a of hospitals, universities, pharma- WEBCAST EVENT health care advisory committee to ceutical companies, medical de- Data Privacy and Security: be overseen by a board of its mem- vice manufacturers and medical ber health care employers, which professionals. The alliance was BANKRUPTCIES Limit Exposure and Penalties will oversee economic attraction founded in 2008 in a coordinated and try to streamline local govern- business development campaign The following businesses filed for ment approvals. that could create up to 45,000 jobs Chapter 7 or 11 protection in U.S. Thursday, January 27, 2011 Bankruptcy Court in Detroit Jan. 14- The corridor also will include an in health care by 2018. Noon to 1:00 p.m. EST 20. Under Chapter 11, a company files “economic gardening” strategy fo- “It fits in well with the Main for reorganization. Chapter 7 involves RSVP: Call 1.800.847.6424 or cusing on local business expan- Street initiative, and it helps that liquidation. visit www.mcdonaldhopkins.com sion. Aceves said organizers also Southfield has built on it and East Holly Oil Inc., 8435 E. Holly Road, would like to pursue a health- looked at what they can do specifi- Holly, voluntary Chapter 11. Assets Attorneys on a Mission® themed business incubator or ac- cally,” said Maureen Donohue and liabilities not available. celerator. Krauss, director of economic de- Badran Investment LLC, 8435 E. Holly Your mission is our mission. At least a dozen businesses relat- velopment and community affairs Road, Holly, voluntary Chapter 11. As- We never lose sight of it. ed to health care account for more for Oakland County. sets and liabilities not available. than 6,000 jobs within the 1.5- The district “really focuses Midtown Development Group Inc., square-mile district, which falls more on the service end of the in- 4147 Cass Ave., Suite 200, Detroit, vol- untary Chapter 11. Assets and liabili- mainly between Northwestern dustry, from what I’ve seen, at ties not available. Highway and Greenfield Road from least at its core. But business that ® Sokovic Holdings Corp., 15255 Wind- A business advisory and advocacy law firm Eight Mile Road to Mt. Vernon operate near the core, like vendors mill Drive, Macomb Township, volun- 39533 Woodward Avenue, Suite 318, Bloomfield Hills, MI 48304 • 248.646.5070 Street, Aceves said. to supply senior living centers or tary Chapter 7. Assets: $25; liabilities: Carl J. Grassi Stephen M. Gross They include St. John Providence hospitals, could fit.” $253,877. President Detroit Managing Member Hospital, a Southfield office of De- The city and its development au- FGR Enterprises, 2411 Vinewood, De- troit-based Health Alliance Plan with thority actively will target for- troit, voluntary Chapter 11. Assets Chicago • Cleveland • Columbus • Detroit • West Palm Beach more than 450 employees, the profit health care employers for at- and liabilities not available. www.mcdonaldhopkins.com 10,000-square-foot Northland Park traction or expansion, Aceves — Shawn Wright 20110124-NEWS--0005-NAT-CCI-CD_-- 1/21/2011 5:15 PM Page 1
January 24, 2011 CRAIN’S DETROIT BUSINESS Page 5 IDEA Detroit aims for big thoughts Innovators, inventors, social en- Henry Ford. voted to placing minority musi- trepreneurs and marketers will “Detroit has a heritage and vi- cians in top orchestras. headline the first-ever IDEA De- tality in its people,” Dougherty Also speaking at the conference troit conference March 23, spon- said. “I had wondered, in some will be Josh Linkner, founder of sored by Crain’s Detroit Business ways, whether there would be a ePrize and fund manager for Quick- and its New York-based sister pub- challenge doing an event in De- en Loans Inc. founder and Chair- lication, Advertising Age. troit and finding creative people in man Dan Gilbert’s venture capital The confer- the area. But I found that there are fund, Detroit Venture Partners, ence, modeled af- lots of young people doing interest- aimed at seeding early startups in INTERESTED? ter Ad Age’s ing work and showcasing it.” digital technology and digital mar- Sign up: For IDEA conference IDEA Detroit will feature social keting. registration held the past five entrepreneurs like Veronika Scott, “Detroit is creating some buzz — information, years in Manhat- a College for Creative Studies stu- a rebounding auto industry, social crainsdetroit tan, will feature dent who designed a coat for the entrepreneurs who are carving .com/events 14 speakers talk- homeless that doubles as a sleep- their own paths in the city and in- ing about a spe- ing bag/shelter, using products novative ways to attract new resi- cific product, innovation or trend. from two Michigan companies — dents to Midtown,” said Crain’s IDEA Detroit is geared for mar- Tyvek from Midland-based Dow Publisher Mary Kramer. “This is keters, investors, entrepreneurs, Corning Corp. and fleece from Dear- the perfect time for a conference academics and social-change born-based Carhartt Inc. like this.” agents from Southeast Michigan Cynthia Koenig, a University of The event will be at the A. Al- and will be promoted by both pub- Michigan MBA student, is another fred Taubman Center for Design, lications to those groups in the social entrepreneur who will be at at the College for Creative Studies Midwest. the conference. Koenig founded in Detroit. Dale Dougherty, founder of Ann Arbor-based Wello, which Maker Faire and editor of Make manufactures and distributes the magazine, will be among the fea- WaterWheel, a 20-gallon drum that tured speakers. can be pushed like a baby stroller “I always think it’s really inter- and transports four to five times esting connecting a lot of different the amount of fresh water as tradi- people together who realize the tional methods of collecting water overlap of ideas,” Dougherty said. in small villages in developing “We’re thinking similar ideas, and countries. we can help each other.” Other speakers include David Dougherty’s Maker Faire — a Morrow, founder of Warren-based two-day festival celebrating the sporting goods firm Warrior Sports arts and the do-it-yourself mindset Inc.; Eric Ryan, a Grosse Pointe na- — is held in a handful of U.S. cities tive and co-founder of Method, and was at The Henry Ford for the maker of eco-friendly household first time in 2010. Last July’s event and personal care products; and drew more than 18,000 visitors and Aaron Dworkin, founder of Sphinx, is returning again this year to The the classical music competition de-
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Page 6 CRAIN’S DETROIT BUSINESS January 24, 2011 OPINION OTHER VOICES: STATE OF THE STATE Start state’s journey How to fund Snyder’s plan? Gov. Rick Snyder in his tial progress on each. A nor willing to work on the neces- State of the State address State of the State speech is sary but unpopular. Running issued the right challenge: not the place to lay out de- against both has proven to be a No more putting off until tails, but the governor did way of getting elected all too often. with three steps tomorrow the difficult outline his priorities. The worrisome component of choices that need to be Here his speech was both the speech was on how to pay for hree ideas from Gov. Rick Snyder’s State of the State ad- made to revitalize Michi- encouraging and worri- these necessary and ambitious pri- dress deserve support. gan. And he told us specif- some. orities. Better education — partic- ically what outcomes he There were four action ularly higher education, which T First, the governor made it clear he’s an economic wants to achieve and be areas he addressed that has been on the chopping block for “gardener,” not a hunter. The Snyder team is using the phrase held accountable for. Lou Glazer are particularly encourag- a decade — and the revitalization “economic gardening” to refer to tending to Michigan-based Quite refreshing. ing for a return to pros- of our central cities require ex- companies and helping create policies and support to help The measures he chose to help perity: panded public investments. The them grow. the economy are the right ones. In Moving to a P-20 education sys- state already faces a $1.8 billion addition to the obvious lower un- tem, one that starts at preschool deficit, has $1 billion in enacted With more than 50,000 “second-stage” companies in the employment, he wants higher per and is available for a lifetime; additional tax that comes online state, with $1 million to $100 million in revenue, this makes capita income, lower rates of child recognition of the essential role over the next few years and the sense. If those companies grew an average of two jobs a year poverty, more students leaving that our major research universi- governor called for immediate im- for five years, it would remove some of the sting from Michi- high school college-ready, higher ties play in growing the economy; plementation of his plan to replace gan’s lost decade when it shed more than 800,000 jobs. college attainment and a higher a call for the state to work to at- the MBT with a 6 percent profits number of 25-34-year-olds choos- tract college-educated immigrants; tax that is estimated to cut rev- Second, the governor wants Michigan to open its arms to ing to live and work in Michigan. and understanding that vibrant enue by another $1.5 billion. It is college-educated immigrants. The research on the wisdom of We have been going in the wrong central cities — particularly a De- hard to imagine how you balance this tactic is clear: In about one-quarter of U.S. science and direction on each for years. Turn- troit that is an attractive place for the budget with revenues going technology companies founded between 1995 and 2005, the ing them around will be difficult young professionals to live and down and make the needed public CEO or a key C-suite executive leading the company’s technol- but essential. If Michigan is going work — are an essential element investments. to return to prosperity, we must in Michigan’s economic revitaliza- The governor laid out where we ogy was foreign-born. A Duke University study found these get younger and better educated. tion. need to go. His challenge is to put companies generated $52 billion in revenue in 2005. Getting the metrics right is a The last two — immigrants and in place the policies to get us there. As Crain’s reported Nov. 29, Michigan could attract more major step forward, but ultimately Detroit — are particularly note- Lou Glazer is president and co- immigrants by using the EB-5 immigration law that allows im- what matters is making substan- worthy because they show a gover- founder of Michigan Future Inc. migrants to invest a million dollars, create jobs and earn a visa. Finally, we support the governor’s call to end item-pricing in Michigan’s stores. Ending this law is not anti-consumer. Pundits around the state weigh in Hand-stamping prices on individual items is a waste of money. Clerks could stock shelves more quickly and even help Not enough specifics in address pansions, 2.9 limitations; Gov. major legislative request. customers on the floor or at checkout lines. As long as prices James Blanchard, 1983-1990: 8.6 ex- Perhaps the most telling indica- Gov. Rick Snyder’s 2011 State of were posted or easily scanned, would not most consumers opt pansions, 2.1 limitations; Gov. tion of how momentous the gover- the State address included nine for better customer service? And if service is lacking, the mar- John Engler, 1991-2002: 8.4 expan- nor’s announcement was came proposed expansions of govern- sions, 4.3 limitations; Gov. Jen- from the Ambassador Bridge Co. ket will reward the retailers who offer more. ment and three limitations, ac- nifer Granholm, 2003-2010: 16.25 ex- itself. Normally, (owner Manuel) We were also cheered to see the online dashboard cording to Mackinac Center Fiscal pansions, 3 limitations; Gov. Rick Moroun has a spokesman ready (www.michigan.gov/midash- Policy Director Michael D. Snyder, 2011: 9 expansions, 3 limi- with reaction to any development. LaFaive, who has tallied and cate- board) with metrics focusing tations. This time, there was only silence. gorized annual State of the State Michael LaFaive Jack Lessenberry on economic strength, addresses dating back to 1969. Fiscal policy director, Dome Magazine health and education, “val- “Like all State of the State speech- Mackinac Center for Public Policy ue for money,” quality of es, this one was a mixed bag,” said life and public safety. If LaFaive. “Gov. Snyder hinted at Can Snyder continue to please? some positive things, but didn’t go ‘Time to build’ DRIC bridge you don’t know where nearly far enough with specific, The new governor did some- Gov. Rick Snyder’s State of the you’re going, any road will cost-saving ideas that Michigan des- thing his predecessor promised State address, particularly the get you there. This gover- perately needs to right its economy. but never delivered: he blew peo- tone it struck, drew uniform nor, a CPA, has a very specif- The governor did say he is planning ple away. “It’s time to build the praise from Democrats, Republi- cans, conservative business ic path and destination in to give a series of legislative up- new Detroit River International GLENN TRIEST dates, so hopefully those will in- Crossing Bridge,” he said flatly. groups and even some progressive mind. clude more substantive policy rec- … spending advocates. We look forward to hearing ommendations.” The bridge is not yet a done deal; Whether Snyder can continue to more on Feb. 14, when the Here are the average numbers of some Republicans still say they’ll please everyone will be the central governor delivers the government expansions and limi- oppose it. But it is hard to believe test of his first six months in office as he and a Republican-dominated 2010 Crain’s Newsmak- tations proposed in gubernatorial that the new Republican majority speeches by administration: Gov. could turn down the governor who Legislature seek to square a bil- er of the Year speech. William Milliken, 1969-1982: 5.6 ex- led them to a landslide, on his first See Voices, Page 7 KEITH CRAIN: It was a very good beginning for our state We all have heard a lot of State state, and he attacked it can’t expect our city, hear him give attention to the ex- and our legislators about our state. of the State speeches over the from many angles. state or federal govern- isting business of this state. Next month, he will come up years; politicians are usually good Let’s all hope that he ments to bail us out of Rather than chase all over the with a real budget. We’ll find out at delivering real stem-winders. is successful from all this mess. world for a job here and there, the all about the bad-tasting medicine So it was refreshing to hear our angles. We are going to have state of Michigan should be culti- we’re going to have to take to get new governor deliver a speech But the part I liked to work hard and we vating the businesses that are al- our state well again. without first handing out the pre- the best was when he are going to have to ready here. It may be vile-tasting, tough to pared text hours before so pundits made us all realize that work together. In busi- We have to help them grow, hire swallow, but it’s going to be neces- could be criticizing before the government can’t do ness, we can mentor more people and prosper. I believe sary. speech is even finished. Our new everything for us. We people who need help he referred to gardeners rather It’s going to be a rough road, but governor simply is not a politi- have to help ourselves and advice to make than hunters. It certainly makes a we’re going to have to celebrate cian. and, more importantly, their businesses more lot of sense. our home-grown and help one an- Gov. Snyder gave a good speech we have to help each successful. And finally, I simply liked the other. without a lot of hyperbole. He con- other. Maybe try to “buy lo- governor’s tone. He wasn’t trying Our governor knows what we centrated on jobs and job creation. There is no easy road out of our cal,” too. to run a political rally. He was have to do, and we have started the That is the No. 1 priority in our current financial crisis. And we I was particularly pleased to talking to the citizens of Michigan first step of our journey. 20110124-NEWS--0007-NAT-CCI-CD_-- 1/21/2011 5:12 PM Page 1
January 24, 2011 CRAIN’S DETROIT BUSINESS Page 7 MARY KRAMER: Now’s the time for volunteer ‘believers’
Edsel Ford II didn’t need anoth- a Believer,” the cam- sionals later, the cam- Associates, production house Pluto Public Schools. er engagement after chairing De- paign launched earlier paign was launched. Post, media producer Robert Dyke One of the region’s megachurch- troit 300, the city’s 300th anniver- this month to boost sup- Billboards and broad- and former Detroiter William Dear. es responded, too, looking for ways sary celebration that left Detroit port for Detroit. cast spots feature What gives the campaign some to engage its 25,000 members in De- with a new hot spot: Campus Mar- Hermanoff contacted everyone from Mayor meat is the Web site, www. troit. tius Park. Curtis in summer 2009, Dave Bing to Oakland believeinDetroit.org, with a back- How such overtures translate But he volunteered in 2006 to feeling frustrated about County Executive L. bone created by a Cities of Service into volunteer action and engage- corral five nonprofit groups, try to the region, the city and Brooks Patterson to program funded by the Rockefeller ment will determine the ultimate reduce duplication and create met- the future. Curtis creat- novelist Elmore Foundation. Through the site, peo- success of this well-intentioned rics that would keep the region ed the successful “Do Leonard and rappers ple can sign up to volunteer. campaign. moving ahead. you have a Beaumont and hip music produc- The site is crucial to determine As Sherri Welch reports on Page doctor?” campaign that ers. Big names are vol- the success of the campaign. Will Mary Kramer is publisher of 3, One D is dissolving, with pieces transformed health unteering to do com- people volunteer? Crain's Detroit Business. Catch her of it going to various nonprofit and care advertising in this mercials to boost the “There’s a pent-up desire to help take on business news at 6:10 a.m. civic groups. Most people never re- market. What magic could she “I’m a Believer” spots. Detroit,” Curtis said, noting the Mondays on the Paul W. Smith show ally understood what One D was. work for Detroit? Behind the scenes were WXYZ- 4,500 people — many from the sub- on WJR AM 760 and in her blog at But they knew who Edsel Ford is, Eighteen months and help from Channel 7 General Manager Ed Fer- urbs — who have volunteered for a www.crainsdetroit.com/kramer. and when he spoke about One D in a small army of volunteer profes- nandez, Mark Petroff at Marketing reading tutor program in Detroit E-mail her at [email protected]. public forums, scores of people were ready to sign up for whatever he wanted them to do. It wasn’t that kind of civic en- gagement effort. But marshaling volunteers is exactly what adver- tising veteran Paige Curtis and public relations guru Sandy Her- manoff hope will happen with “I’m
VOICES CONTINUED ■ From Page 6 lion-plus tax cut for employers while closing an even bigger bud- get deficit. Peter Luke Booth Michigan Be thankful for hearing ‘no’ A fast budget (May 31) almost certainly means a hard, painful budget. A fast budget almost as- suredly means a budget written with the hope that interest groups cannot somehow trip it up during the legislative process. A fast bud- get implies changes the public is probably not ready for. … Many who rely on the state have prayed for specific detail of Mr. Snyder’s intents. Given the signs and portents, maybe they should take some comfort that for now, and for a few weeks yet, the an- swer to that prayer was no. For those anxious to see the budget cut, perhaps they will just need to chafe a while longer while the an- It’s time for your business to swer to prayers for details is no. John Lindstrom Gongwer News Service accomplish big things again. Stable auto industry sets stage for growth of other industries Reviving the auto industry is not Gov. Rick Snyder’s priority. Reviving Michigan is his priority. The two are indelibly linked, but Snyder’s focus is elsewhere — and that reality was on full display Wednesday night during his first State of the State address. … Manufacturing made a cameo Now’s the time to reinvest in your business’ future. appearance twice. But entrepre- The last few years haven’t been easy. It’s been work just to maintain the business you’ve built. neurs consumed the spotlight. … Emphasizing the development of It’s time to get back to growing it. Whether that means buying new equipment, improving your (a statewide) “entrepreneurial working capital, or reinforcing your overall finances, Fifth Third Business Bankers can help you ecosystem” is possible, in part, be- cause the auto industry has al- take action to get your business moving forward with confidence. Stop in your local Fifth ready stabilized. … The auto industry’s health is Third Banking Center, call 1-866-534-7249, or visit 53.com, and let’s get your business moving. critical to Michigan’s economic stabilization. But growth in the Michigan economy will depend on Loans subject to credit review and approval. Fifth Third Bank, Member FDIC. Equal Housing Lender. other industries. Snyder wants en- trepreneurs to lead the charge. Nathan Bomey AnnArbor.com 20110124-NEWS--0008-NAT-CCI-CD_-- 1/21/2011 5:11 PM Page 1
Page 8 CRAIN’S DETROIT BUSINESS January 24, 2011 JCI designer sees brighter, lighter future inside cars
BY DAVID SEDGWICK automakers confidence that light “That gray is almost lavender,” CRAIN NEWS SERVICE interiors wouldn’t get dirty within Sabbagh said, admiring an A7’s a few weeks. “In architecture, peo- paint job. “That gives it depth. It cre- Sherry Sabbagh walks the floor ple like white, clean airy rooms,” ates a shadow effect. It comes alive, of the North American International she said. “So we brought this into almost as if it were changing color.” Auto Show, eyeing concept cars un- the car as well.” Audis boast some of the best in- veiled the previous day. Sabbagh says the migration to teriors in the business, Sabbagh She wanders over to the Porsche light interiors began seven or said, but small mass-market cars 918 RSR. She is impressed, but it’s eight years ago at the Milan furni- might prove to be the trendsetters not the 767-horsepower hybrid ture show, a global launching pad of the future. powertrain, side scoops or stabiliz- for architectural trends. Someday, car buyers will be able er wing that catches her eye. Other much-watched industry to personalize seats and door pan- It’s the orange piping on the events include Premiere Vision, a els online. A customer could take a chocolate-brown seats. “It’s a way Paris-based fabric show, and Lin- high-resolution photo of wood or to let color into the car,” she said. eapelle, a leather trade show in pebbles, or a dragonfly’s wings, “It gives you a little splash of col- Bologna. and have the design blown up and or.” Sabbagh has spent 12 years mon- reproduced on fabric using digital Sabbagh, 51, can be forgiven for itoring these and other events for printing. her laser-like focus on seats. As Johnson Controls. Before that, she “Everyone is feeding off bio- Milwaukee-based Johnson Controls worked for 17 years as a textile de- mimicry,” Sabbagh said. “People Inc.’s principal materials designer Sherry Sabbagh is principal materials designer in Plymouth for Milwaukee-based signer in New York, where she de- are trying to bring nature into based at the company’s Plymouth Johnson Controls Inc., focusing on fabrics and colors in automotive interiors. signed clothing and furniture tex- their cars through these textures operations, Sabbagh chooses the tiles for designer Oleg Cassini, and surfaces.” company’s palette of colors and cle’s most costly components are found in luxury car seats and in- Lucasfilm Ltd., Walt Disney Produc- Another trend: Hard plastic fabrics for its seats, consoles, door seats. Automakers spend roughly strument panels, will migrate to tions and others. cockpit surfaces will be replaced panels and other interior compo- $8 billion a year to put seats in mass-market cars. In the course of her career, she with composites that might show nents. North American-built vehicles. Ⅲ Wood inlays will start to fea- has developed a nuanced eye for flecks of natural materials such as It’s her job to monitor changing The cost to automakers for a set ture nontraditional tints, such as tints that might easily escape an wheat or wood grains. tastes in furniture, clothing, of seats for a mass-market model yellow, gray or green. amateur. Recently, she canceled Brighter colors will find their sportswear — you name it — then like the Toyota Camry might start Ⅲ Creamy, light interior colors elective surgery to correct her way into car interiors, too. figure out what might catch a car at $450 and range up to $1,000 for will prove popular in small cars. nearsightedness after learning she American motorists tend to be buyer’s eye. leather-equipped seats with power They make interiors look roomier might lose her ability to detect conservative in their choice of in- She also helps automakers with adjustments. and more luxurious. subtle shades of gray. teriors. But Sabbagh said she Johnson Controls contracts choose Here’s what she expects: That last item could prove most “My eyes are my livelihood,” thinks that will change as the the fabrics and materials that car Ⅲ Bright colors are gaining pop- significant. Pale, cream-colored in- she said. economy improves and consumers buyers will see in showrooms ularity, and even the color gray teriors convince consumers that As if to prove the point, she wan- feel better about their prospects. three or four years from now. will get subtle tints of blue, violet small cars are not the graceless dered over to some Audi sedans As she put it: “The future looks These are big-money decisions. and other accents. econoboxes of old. that looked simply gray to this ob- good for color.” Aside from the powertrain, a vehi- Ⅲ Stitching, once a costly accent Improved fabric coatings give server. From Automotive News
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January 24, 2011 CRAIN’S DETROIT BUSINESS Page 9
REPORTER’S NOTEBOOK
Dustin Walsh writes about auto BRIDGE TO THE FUTURE suppliers, the steel MDOT uses high-tech materials industry, higher education and tested by Lawrence Tech in Livingston and replacement span, Page 11 Washtenaw counties. Call (313) 446-6042 or write [email protected] Innovations: Sustainability Dustin Walsh Planet Blue tints UM green
At the University of Michigan, three teams bent on efficiency are combing the campus as part of the Planet Blue program. The operations employees, students and faculty saved the university $3.5 million in fiscal year 2010 by curtailing energy consumption in university buildings by 12 percent. Since 2008, Planet Blue has completed efficiency upgrades on 44 UM buildings. It plans to complete 30 more buildings annually. “The goal is to convert 120 of our major buildings,” said Terry Alexander, executive director of UM’s Office of Sustainability. “If we can average a 12 percent savings, that’s a pretty good savings for the university.” UM’s utility budget is roughly $110 million for 34 million square feet of building space.
If Planet Blue achieves a LEISA THOMPSON 12 percent savings for all 120 Tackling the problem of hazardous materials produced by traditional oil-and-water lubrication of metalworking tools, University of Michigan Associate buildings, it would save UM Professor Steven Skerlos has come up with a new approach. roughly $13.2 million annually. “We’ve been doing energy conversions in our buildings for the past 20 years, but this is a more effective way to make these buildings more efficient,” Alexander said. Meeting little friction Alexander oversees Planet Blue and other sustainability initiatives at UM, including recycling and water conservation. Accuri founder’s new lubrication technology removes water from mix The program audits buildings’ BY TOM HENDERSON machine shops here, large and systems, checks office use, CRAIN’S DETROIT BUSINESS small, that survived the reces- researches buildings’ histories sion. and devises a plan for If there’s one place on Earth you can usion Coolant Systems Inc. “ McColm is now managing implementing the most beneficial would seem to have noth- efficiency systems, he said. launch this startup, it’s Southeast director of the Ann Arbor of- F ing in common with Accuri fice of Early Stage Partners, a Upgrades can include sensors Cytometers Inc., other than be- Michigan. Cleveland-based venture capi- that turn lights on and off when a ing spun off from the University ” tal firm. McColm will lead the person enters or leaves a low- of Michigan. Andy McColm, Fusion Coolant Systems Inc. angel fundraising. Fusion is traffic area, low-flow water Ypsilanti-based Fusion has not part of the portfolio of ESP, systems, high-efficiency lighting devised what it hopes will be a los, the chairman of graduate begun making strides. which invests in early-stage systems and efficient better way of lubricating the education in mechanical engi- “This company is one year life science companies. thermostat controls, among cutting and drilling tools in- neering. in, and it feels a lot better than The National Science Founda- others. volved in industrial applica- Since he was a graduate stu- Accuri did one year in,” said tion awarded the company a Bigger-ticket capital outlay tions like en- dent at the University of Illinois Skerlos. “The path to market phase-one SBIR grant of projects are also possible as part KERLOS STORY gine blocks, in the 1990s, Skerlos has fo- for Accuri was a lot less obvi- $220,000 last year, which fund- of the program, but those would S ’ and at the cused on cleaning up the pol- ous. Here, there’s a clear need ed its formal launch, and earli- follow traditional funding sources Path to success: same time re- luted oily water that is a to be filled.” er this month company offi- through the university. Solving problems ducing conta- byproduct of machine tooling. Fusion Coolant has found an cials were told by NSF officials Alexander said the success of led to opportunities, minated Ann Arbor-based Accuri was industry veteran to lead it, has that they had been awarded a Page 11 the program depends on ensuring byproducts founded in 2004 and struggled landed a first customer and phase-two grant of $404,000. the building’s conservation and airborne with funding for years until it has won $694,000 in federal The company also won a systems run as efficiently as health risks for workers. The found market acceptance and small-business innovation re- phase-one SBIR grant of $70,000 possible and teaching the goal: Make old-school manu- began generating substantial search grants in the past year. last year from the National Cen- building’s occupants how to facturing tasks cleaner and revenue, estimated to be more It hopes to raise $500,000 in an- ter for Environmental Research. operate the systems in the most use less energy. than $10 million last year. gel funding later this year. It The NCER said Fusion sustainable way. Accuri, by comparision, Fusion, which uses a cooled employs six and is hiring, Coolant’s metalworking fluids “The educational piece of makes desktop instruments and pressurized mix of carbon looking for a field-service engi- — which the company calls what we do is extremely that silently automate cell dioxide and oil to replace the neer and a sales rep. CHiP lubes, for cryogenic high important,” he said. “A lot of it analysis for university and traditional mix of water and “If there’s one place on Earth pressure lubricants — promise seems common sense, but if biotech researchers looking to oil that cools industrial cut- you can launch this startup, it’s better cooling and increased they’re not using the systems find the next big drug or ting tools — it hits the cutting Southeast Michigan,” said in- lubrication. They also “have a properly, we’ll lose those launch the next startup. surface at temperatures be- terim CFO Andy McColm, who much lower environmental savings.” But both companies were tween minus 20 and minus 60 worked with Skleros when he footprint … and also eliminate founded by the same associate degrees centigrade — was was with UM’s tech transfer of- professor at UM: Steven Sker- founded last January and has fice. He was referring to all the See Fusion, Page 10 20110124-NEWS--0010-NAT-CCI-CD_-- 1/21/2011 10:53 AM Page 1
Page 10 CRAIN’S DETROIT BUSINESS January 24, 2011 Focus: Innovations: Sustainability Fusion: Little friction ■ From Page 9 health risks to workers arising Advanced Manufacturing. from chemicals and microorgan- “It’s an eco-friendly approach to isms in metalworking fluids. manufacturing and allows for faster Traditional machining fluids processing time,” said Tom Ander- combine water and oil. That re- son, director of entrepreneurship at quires surfactants to get the two to Automation Alley. “There’s a need to mix properly, and those surfac- get solvents out of the manufactur- tants released into the air present ing process, and by reducing bacte- health problems. In addition, wa- ria contamination, it’s good for ter breeds bacteria that can be re- worker health, but what will make leased and has on occasion caused it a big seller is if lets customers cut Legionnaire’s disease. Biocides more inches per second.” used to lower bacteria counts cre- Burak Ozdoganlar met Skerlos ate other problems for workers. when they were both at the Univer- Then there is the cost of dispos- sity of Illinois and has kept in touch. ing of the hazardous wastewater. He told Skerlos that there could be Last October, Fusion hired Tom applications at the opposite end of Gross as CEO, a veteran with near- the manufacturing scale from ly 30 years experience in machining what he’d been envisioning. tooling. He was manufacturing en- Better cooling and lubricating gineering supervisor for General Dy- was needed in cutting metal for namics Land Systems at the Warren such old-line applications as engine tank plant from 1985 to 1991 and blocks, but it was also needed to COO of Farmington-based Durr Pro- help shape polymers, metals and ce- duction Systems ramics in the very tiny microma- from 2002 to 2003. chining world that fabricates such Durr Production things as microfluidic channels or is a $40 million needle arrays in medical devices division of the and the very small features such as Durr Group, a $2 gears and levers that go into minia- billion company ture electrical devices. based in Last fall, Ozdoganlar, an associ- Stuttgart, Ger- ate professor of mechanical engi- many. neering at Carnegie Mellon Universi- “If you’d ever ty in Pittsburgh, began testing Gross been in a ma- Skerlos’ system of CO2-based cool- chine shop on a 90-degree day and ing and lubricating in his lab. seen the haze of fluids in the air, “The advantages were much you’d see the need for this technol- more in micromachining than in ogy,” he said. regular machining. We’ve seen Fusion provides both coolant and considerable advantages in the the components to deliver it from features we can create. For exam- storage tanks to the cutting surface, ple, we’ve been able to reduce burr both of which are subcontracted out formation, which can be quite a at this point. Gross said he landed problem in micromachining.” his first customer in December — Timothy Hull is supervisor of Paramount Precision Products Inc. of machining and tooling develop- Oak Park — “and I’m talking to a ment for advanced powertrain $2 billion Japanese company that is manufacturing for Ford Motor Co. looking to add our components as He started vetting Fusion Coolant an option to their catalog.” technology for UM in 2006 and con- Sheila Rossmann is CEO at tinues to evaluate it in his lab in 6WDUW6DYLQJ Paramount, a precision machine Livonia. tooling company founded in 1948. “In the applications we’ve 7RGD\ZLWK(QHUJ\ She said that in addition to being looked at, it provides superior Fusion’s first paying customer, cooling of cutting tools, which sig- (IÀFLHQF\,QFHQWLYHV she is providing office space so Fu- nificantly extends tool life and in- sion employees can monitor creases cutting speeds,” he said, progress at Paramount as it ramps particularly with the super-hard- up implementation. ened compacted graphite iron that ITH COLDER TEMPERATURES, now is the “This is going to lower the cost is used to make engine blocks. Wtime to start saving energy and saving of production, it’s going to reduce He said that while it is clear that money by boosting the energy efficiency of your coolant intake and it’s going to the technology offers improve- natural gas heating system. lower the cost of getting rid of ments in cooling and in reducing byproducts,” said Rossman. contaminants, it is a disruptive Incentives are available for: Gross said revenue should hit technology that can pose an imped- • &URNACE