20120409-NEWS--0001-NAT-CCI-CD_-- 4/6/2012 5:48 PM Page 1 ® www.crainsdetroit.com Vol. 28, No. 15 APRIL 9 – 15, 2012 $2 a copy; $59 a year ©Entire contents copyright 2012 by Crain Communications Inc. All rights reserved Page 3 Ballot drive Commercial real estate Companies struggle to fill claws back from recession ruling on EM Focus: Law jobs for skilled laborers law key to General and In-House Counsel Awards, Page 11 Shortage expected to increase over 5 years city’s action CRAIN’S BY DUSTIN WALSH collapse three years ago. tive vice president and general CRAIN’S DETROIT BUSINESS As many as 600,000 skilled la- manager. Ability to impose MICHIGAN BUSINESS borer positions remain unfilled Richard Tool and Die isn’t Rising automotive sales and for U.S. manufacturers, according alone. According to a November wages in low-cost countries mean to a fall survey by Deloitte LLP and survey by Troy-based Original contracts in play Finding bright spots one thing: increased manufactur- The Manufacturing Institute. The Equipment Supplies Association, 57 BY NANCY KAFFER ing in Southeast Michigan. Tool survey revealed that 67 percent of percent of automotive suppliers in embattled solar CRAIN’S DETROIT BUSINESS and die makers and machine respondents had a moderate to se- are having difficulty finding industry, Page 21 shops are busy again, but that vere shortage of skilled laborers. skilled laborers. That’s up from 35 Until the fate of a petition aimed growth comes with a cost, and it’s New Hudson-based Richard Tool percent in 2010. at repealing the state’s emergency spelled “Help Wanted.” and Die Corp. needs as many as 20 Mark Tomlinson, executive di- manager law is decided, Detroit’s World Watch: Manufacturers are scrambling skilled laborers at its New Hud- rector of Dearborn-based Society labor unions have no incentive to Spotlight on to find skilled laborers in an in- son and Belleville plants, but it is of Manufacturing Engineers, called come to the table to negotiate the dustry of advancing technology coming up short. the skilled labor shortage in the steeper labor contract cuts, includ- Michigan biz following years of massive job “Business is up, and we need to U.S. manufacturing sectors “on- ing changes to union work rules, cuts — from outsourcing early in hire, but we just can’t find good pensions and benefits, that offi- in Germany, Page 25 the millennium and the industry people,” said Steven Rowe, execu- See Skilled, Page 35 cials say are necessary to keep De- troit solvent. If the petition This Just In is certified for the November $100K biz plan competition ballot, Public Why is state Act 4 — and the for female entrepreneurs power it grants Women entrepreneurs can Detroit Mayor compete for up to $100,000 in Dave Bing to im- cash awards and in-kind sup- the hot bet pose contracts port in the new Entrepre- on unions whose neur-You Business Plan Com- contracts have Bing petition, sponsored by the expired — would be suspended. Michigan Women’s Foundation. for more casinos? That ability is a key provision of The competition is open to the consent agreement signed last all industries and levels of week by the city and the state that entrepreneurship. There are Private investor me-tooism, some say is intended to help the city avoid three categories: profession- appointment of an emergency al/company, collegiate, and BY MIKE TURNER manager or a Chapter 9 bankrupt- high school. Applicants can CRAIN’S DETROIT BUSINESS cy filing. describe a business they cur- Opponents of Public Act 4 filed a LANSING — In the nearly 30 years since the casi- rently run or pitch an idea petition in February to place a re- no industry began to form in Michigan, 25 gaming they think deserves startup peal on the ballot in November. Or- establishments have cropped up throughout the funding. ganizers of the petition drive gath- state. The deadline for the pro- ered 225,885 signatures; 161,305 are Today, plans for nearly that same number of casi- fessional/company category required. The deadline for certifi- nos are in some stage of development, prompting in- is April 26, and the deadline cation of signatures on the petition dustry observers to ask: Why the for the high school and colle- is April 29. But most union con- sudden surge in casino proposals? giate categories is May 4. tracts don’t expire until June 30. DETAILS The latest development came last The award money comes That means Public Act 4 could week, when the state Board of Can- from Huntington Bank, and Closer be off the table before Bing ever vassers OK’d language for a petition winners will also get entre- look at gets the chance to use those pow- casino plans, drive that would allow eight more preneurial coaching from ers. Page 37 commercial casinos statewide. the foundation. Gov. Rick Snyder has said that “I haven’t a clue why now,” said The idea for the competi- union agreements negotiated by James Hill, a political science professor at Central Matthew Fletcher, a professor at the Michigan tion came from the Entrepre- Bing’s team earlier this year don’t Michigan University who has studied the impact casi- State University College of Law and director of the In- neur-You conference, a yearly have enough cuts, and municipal nos have on communities. digenous Law and Policy Center, said there’s substance summit for businesswomen finance experts say altering union “Maybe because Virg Bernero got everyone to Hill’s theory. organized by Walsh College, contracts is a necessary part of bal- pumped up,” Hill quipped, referring to the Lansing The push by the Sault and other Michigan tribes the Michigan Women’s Founda- ancing the city’s budget, given mayor’s support for a casino to be run by the Sault to open off-reservation casinos has likely drawn the tion, Inforum and Huntington union leaders’ expressed lack of in- Ste. Marie Tribe of Chippewa Indians in downtown interest of private investors who sense an opportu- Bank. More information is terest in returning to the negotiat- available at miwf.org. Lansing. The proposal, also backed by the Lansing City Council, requires federal approval. See Casinos, Page 37 See City, Page 34 NEWSPAPER 20120409-NEWS--0001-NAT-CCI-CD_-- 4/6/2012 6:01 PM Page 1 CRAIN’S MICHIGAN BUSINESS A special edition of ® Cwww.crainsdetroit.comRAIN Vol. 28, No. 15 ’SDETROITAPRIL 2012 BUSINESS$2 a copy; $59 a year ©Entire contents copyright 2012 by Crain Communications Inc. All rights reserved Inside Michigan Ballot drive Finding bright spots Companies struggle to fill in embattled solar industry, Page 21 ruling on EM jobs for skilled laborers law key to Shortage expected to increase over 5 years city’s action BY DUSTIN WALSH collapse three years ago. tive vice president and general CRAIN’S DETROIT BUSINESS As many as 600,000 skilled la- manager. borer positions remain unfilled Richard Tool and Die isn’t Ability to impose Rising automotive sales and for U.S. manufacturers, according alone. According to a November wages in low-cost countries mean to a fall survey by Deloitte LLP and survey by Troy-based Original contracts in play Making the Grand River one thing: increased manufactur- The Manufacturing Institute. The Equipment Supplies Association, 57 BY NANCY KAFFER ing in Southeast Michigan. Tool survey revealed that 67 percent of percent of automotive suppliers more rapid, Page 24 and die makers and machine respondents had a moderate to se- are having difficulty finding CRAIN’S DETROIT BUSINESS shops are busy again, but that vere shortage of skilled laborers. skilled laborers. That’s up from 35 Until the fate of a petition aimed World Watch: growth comes with a cost, and it’s New Hudson-based Richard Tool percent in 2010. at repealing the state’s emergency spelled “Help Wanted.” and Die Corp. needs as many as 20 Mark Tomlinson, executive di- manager law is decided, Detroit’s Spotlight on Manufacturers are scrambling skilled laborers at its New Hud- rector of Dearborn-based Society labor unions have no incentive to to find skilled laborers in an in- son and Belleville plants, but it is of Manufacturing Engineers, called come to the table to negotiate the Michigan biz dustry of advancing technology coming up short. the skilled labor shortage in the steeper labor contract cuts, includ- in Germany, Page 25 following years of massive job “Business is up, and we need to U.S. manufacturing sectors “on- ing changes to union work rules, cuts — from outsourcing early in hire, but we just can’t find good pensions and benefits, that offi- the millennium and the industry people,” said Steven Rowe, execu- See Skilled, Page 35 cials say are necessary to keep De- troit solvent. This Just In If the petition is certified for the November $100K biz plan competition ballot, Public for female entrepreneurs Why is state Act 4 — and the power it grants Women entrepreneurs can Detroit Mayor compete for up to $100,000 in Dave Bing to im- cash awards and in-kind sup- the hot bet pose contracts port in the new Entrepre- on unions whose neur-You Business Plan Com- contracts have Bing petition, sponsored by the expired — would be suspended. Michigan Women’s Foundation. for more casinos? That ability is a key provision of The competition is open to the consent agreement signed last all industries and levels of week by the city and the state that entrepreneurship. There are Private investor me-tooism, some say is intended to help the city avoid three categories: profession- appointment of an emergency al/company, collegiate, and BY MIKE TURNER manager or a Chapter 9 bankrupt- high school.