20130617-NEWS--0001-NAT-CCI-CD_-- 6/14/2013 6:19 PM Page 1 ® www.crainsdetroit.com Vol. 29, No. 23 JUNE 17 – 23, 2013 $2 a copy; $59 a year ©Entire contents copyright 2013 by Crain Communications Inc. All rights reserved Page 3 MEDC’s new focus: Targeted Competition revs up with new Ducati dealership hunting Orr floats plan for a regional water authority BY CHRIS GAUTZ CAPITOL CORRESPONDENT Salute to Entrepreneurs Doner co-CEOs David DeMuth (left) and Rob Strasberg have worked to make the agency a one-stop shop. Hunting and attraction efforts are returning to the Michigan Eco- nomic Development Corp. with a re- newed focus this year. The MEDC has created an ex- port and attraction team that will GLENN TRIEST focus on targeted industries and high-priority markets as part of a new strategic plan guiding the agency through 2017. Those industries include manu- Restoring the facturing, energy, biosciences, chemical and agriculture. Coun- Entrepreneurs who hit a tries being targeted are Canada, Doner rebuilds afterzoom loss of Mazda account China, Brazil, France, Germany, winning note, Page 11 Japan, Korea, Mexico, Saudi Ara- bia, UAE and the United Kingdom. This Just In BY BILL SHEA 1954; “What would you do for a Klondike bar?” in the The goal for the coming fiscal CRAIN’S DETROIT BUSINESS 1980s; the Vlasic stork; and Dow’s “Scrubbing Bub- year is to target $445 million in in- bles” in the 1970s. Chelsea Milling has recipe well-trafficked basement hallway at the Don- vestment and 4,000 jobs due to at- Also on the wall is the “Zoom Zoom” campaign traction efforts. for $35M in upgrades er advertising agency office in Southfield is that Doner created for Mazda Motor Corp. in 2000. lined with artwork commemorating some of After Gov. Rick Snyder took of- Chelsea Milling Co., the As much as the second-story fire that devastated fice in 2011 and said in his first A the firm’s iconic campaigns — a veritable the agency’s headquarters in August 1996 and re- company behind Jiffy Mix, is marketing hall of fame for creative work that be- State of the State address that planning to invest $35 mil- quired a 22-month rebuild, the Mazda account is there needed to be “more emphasis came part of American culture. something of a demarcation point for Doner. lion in upgrades to its The agency’s creative work on display includes: on economic gardening as opposed Chelsea production facilities The agency, once the nation’s largest independent to hunting,” the organization has Tootsie Roll and its “How many licks does it take to ad firm up until a couple of years ago, lost the $150 over the next five to seven get to the center of a Tootsie Pop?” that hit the air- done just that. years. million Mazda account in June 2010 to a consortium But now, the MEDC is going waves in 1968; Ball Park Franks and its “They plump of WPP Group agencies in California. The upgrades are aimed at when you cook ’em” slogan that debuted in 1966; back to its days of attracting busi- modernizing equipment and Timex’s “Takes a licking and keeps on ticking” from See Doner, Page 29 See MEDC, Page 28 increasing the company’s ca- pacity to make food products sold to customers such as restaurants, schools and hos- pitals and institutional prod- ucts sold to large hotels and As Polk sale looms, clan’s last company leader looks to future prisons, said CEO Howdy Holmes. BY BILL SHEA It was the accidental death of his After 14 decades, why sell? The company plans to get a CRAIN’S DETROIT BUSINESS brother in 1985, and the death of his fa- “I think it was really a natural out- Stephen start on the upgrades this ther a year before, that launched Polk, growth of where my own view of the Polk summer, beginning with the Stephen Polk is the fourth and final now 57, unexpectedly onto the fast future was. I’ve got a number of good installation of a new auto- generation to lead his family’s epony- track to executive leadership of the years left in me. (But) I am the only matic bag line for the institu- mous data company — a role and dis- company: By 1989, he was appointed member of the family left in the tional products. tinction he never expected. executive vice president of operations, business,” Polk told Crain’s in an The upgrades will enable Polk gave up his academic study of president in 1992 and CEO in 1994. interview last week. Chelsea Milling to increase wildlife biology to join the city direc- Last week, he made perhaps the Polk’s son just graduated its production from 120 mil- tory and automotive information most profound decision in R.L. Polk’s from high school and would be lion pounds per year to about firm in 1981 in an entry-level job, and history, to sell the company for $1.4 many years from an execu- 360 million to 400 million today he is chairman, president and billion to Englewood, Colo.-based busi- tive leadership role. pounds per year, Holmes CEO of Southfield-based R.L. Polk & ness data giant IHS Inc. in a deal ex- “It made me realize, long- said. Co., which his great-grandfather pected to close after regulatory ap- — Sherri Welch launched 143 years ago. proval in four to six weeks. See Polk, Page 26 LARRY PEPLIN Deadline for entries Aug. 16 SPONSORED BY MEDIA SPONSORS Be recognized for your best practices that promote healthy employees and healthy workplaces. To enter, please visit crainsdetroit.com/nominate 20130617-NEWS--0002-NAT-CCI-CD_-- 6/14/2013 5:55 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS June 17, 2013 MICHIGAN BRIEFS Haworth’s ‘smarter’ office chair Toronto-based Lundin Mining Corp. said it’s buying an Upper wows judges at trade show Employers collaborate in search of logistics relief Peninsula nickel and copper mine Haworth’s redesign of the office from a subsidiary of London-based lounge chair features room for What started as a conversation between execu- “If these businesses … can find logistics opportu- Rio Tinto PLC for $325 million, The your latte and puts all your tech- tives at Grand Rapids-based Cascade Engineering Inc. nities between and among the companies, that’s a Detroit News reported. nology from tablet to smartphone and Ada-based Amway Corp. about the escalating good thing. It’s the beginning of a novel, collabora- Lundin Mining said it is expect- at your fingertips. costs of logistics has morphed into a monthly meet- tive approach,” he said. ed to close next month on the pur- The concept from the Holland- ing of managers from many of the largest West According to the “State of Logistics” report re- chase of Rio Tinto Eagle Mine LLC in based furniture maker impressed Michigan employers to examine logistics best prac- leased a year ago by the Lombard, Ill.-based Council Michigamme Township. The deal judges, who gave the Harbor Work tices and common issues. of Supply Chain Management Professionals, logistics requires regulatory approvals. Lounge a Best of NeoCon silver “The goal is improved logistics and reduced logis- costs in 2011 grew 6.6 percent from 2010 and 17 per- Lundin Mining said the mine holds award for collaborative seating at tics costs as a percentage of doing business,” Rick cent compared to a recession-induced dip in 2009. high-quality deposits with low tech- last week’s NeoCon 2013 trade Chapla, vice president of business development at From 2003 to 2008, logistics costs increased 50 per- nical and processing risk. Produc- show in Chicago’s Merchandise Grand Rapids-based The Right Place Inc., one of the cent nationwide, according a report from DC Veloci- tion is expected to start late next Mart, MLive reported. conveners of the user group along with the Grand ty, a publication for distribution center executives. year. Designed by Nicolai Czumaj- Rapids Area Chamber of Commerce, told MiBiz. “We “I am 100 percent confident that there is savings Cereal maker Post Foods an- Bront, the chair’s patent-pending want to attack the increasing proportion of business through collaboration,” said Josh Lunger, public nounced plans to invest $30 million integrated work surface includes a that these companies spend on logistics.” policy coordinator with the Grand Rapids Chamber. in a West Michigan facility, creat- sliding plywood tablet and suede The group includes logistics managers from some “Some companies already do it. You’ve seen the big ing 92 jobs, the Battle Creek Enquir- seat wing, which securely keeps of the region’s largest companies who have been furniture makers … bring in products and materials er and WOOD-TV reported. The contemporary work tools comfort- meeting monthly since the start of the year, Chapla together, even though they’re direct competitors. It plan includes closing a plant in Cal- ably at hand. There’s even a sec- said. saves them all money, so why not?” ifornia. The company could be in ond cup holder in the chair’s line for property tax abatement in matching ottoman for the visitor Battle Creek. The Michigan Strategic longtime relationship with the Campus demolition, as its vacant plan to hire more employees, while who drops by for a chat. Fund has awarded a $700,000 busi- university — will develop plans to North Hall, West Hall and Speech 4 percent expect to reduce staff. The lounge retails for $1,600 to ness development grant. turn WMU’s 34,000-square-foot, and Hearing Center will be coming Statewide, Manpower reported that $3,100, and a matching ottoman three-story East Hall into a $15 down by this fall, said Cheryl from July to September, 24 percent Find business news from sells for $750 to $980.