THE CONVERSATION: Riverfront Conservancy marks 20 years of progress PAGE 22
MICHIGAN BUSINESS: Pharma startup bets big on drug manufacturing space. PAGE 8
CRAINSDETROIT.COM I JANUARY 10, 2022
Leadership on many fronts makes Henry Ford Health CEO Wright Lassiter III Crain’s Newsmaker of the Year. Hear from him and 9 others who made things happen in 2021. Page 12
Omicron adds new strain for hospitals Health systems struggle with staffing BY DUSTIN WALSH
Thousands of Michigan health care workers are sick with COVID-19 and many are in quarantine and unable to work, adding more stress to a system already under pressure to maintain patient care. While omicron is known to pro-
duce fewer hospitalizations than the previous variant, it’s also much more contagious and a larger number of infected people could lead to even more hospitalizations. It’s a precarious time to overwhelm hospitals as additional bodies from the state or See OMICRON on Page 21
NEWSPAPER
VOL. 38, NO. 1 l COPYRIGHT 2022 CRAIN COMMUNICATIONS INC. l ALL RIGHTS RESERVED
Frontliners sidelined Around the region, thousands of workers are in quarantine, stressing health systems. Henry Ford Health System: 721 employees (2.2% of workforce) tested positive in last 7 days. Sparrow Health: 199 positive employees (2.6% of workforce) on Friday. Trinity Health Michigan: 1,374 employees (5.7% of workforce) in quarantine. Beaumont Health: 430 employees (1.3% of workforce) in quarantine. SOURCES: COMPANIES
Bosch business aims for 2-wheeled growth Unit looks to become Tesla of e-bikes BY KURT NAGL
In the automotive industry’s mad dash to make the smartest electric car, Bosch Group is also tinkering with a different set of wheels. The largest automotive supplier in the world, whose North American base is in Farmington Hills, sees big opportunity in e-bikes,
once a niche segment that is now booming across the globe. Executives say the company is tapping into its automotive expertise in pursuit of dominating the space and becoming the Tesla of e-bikes, as it were. Launched in 2009 as a company startup, e-bikes have become a See BOSCH on Page 21
SHIFTING DYNAMIC Suppliers see new bargaining power with automakers PAGE 3
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NEED TO KNOW
NEW OUTLOOK
THE WEEK IN REVIEW, WITH AN EYE ON WHAT’S NEXT ` ROCKET COMPANIES ADJUSTS ROLES AT THE TOP THE NEWS: The publicly traded parent company of Rocket Mortgage has made several key leadership changes. Longtime executive Jay Farner, vice chairman and CEO of Detroit-based Rocket Companies Inc. (NYSE: RKT), will assume the role of chief executive of Rocket Central, the company said. Previously called Rock Central, the company bills the entity as “the centralized hub” for various financial technology platforms under the Rocket Companies umbrella. As a result of Farner’s change, Bob Walters, another longtime executive, will assume the role of CEO of Rocket Mortgage. WHY IT MATTERS: The moves underscore the Rocket Companies’ goal to go well beyond mortgages in becoming a diversified financial technology company.
` ONESTREAM SHOWS GROWTH WHILE AIMING FOR IPO THE NEWS: OneStream Software LLC, a booming Oakland County-based software company, said it hit several milestones to close out 2021. The Rochester-based company, which plans to move its headquarters to Birmingham this year, announced Thursday afternoon that it had achieved more than $200 million in annual recurring revenue representing 75 percent year-over-
year growth as of Dec. 31. The company also announced its customer base grew by 38 percent.
will depend on where companies choose to locate their EV-focused operations.
` CRATE & BARREL OFFSHOOT PLANNED IN BIRMINGHAM
WHY IT MATTERS: Executives at the company have stressed an initial public offering as a key goal. In April, the private equity-backed OneStream closed on a $200 million funding round that valued the company at $6 billion.
` MAGNA TO CREATE EV CENTER IN TROY THE NEWS: Magna International Inc. said it will set up a new electric vehicle center at its U.S. headquarters in Troy as it aims to have its electric powertrain system ready for production for trucks from 2025. In a news release, the Canadian supplier said its U.S. headquarters would be home to a “specialized team dedicated to preparing” the company’s EtelligentForce powertrain to have it ready for production from 2025, in addition to “other EV products.” WHY IT MATTERS: The Motor City’s future as a global automotive center
THE NEWS: Downtown Birmingham’s former Panera Bread restaurant is being turned into a CB2 store, a sister brand of high-end home goods retailer Crate & Barrel, as the building gets an overhaul. The first floor of the Maplewood building at the northeast corner of North Old Woodward Avenue and Maple Road is being converted into the nearly 7,500-squarefoot CB2 location opening late this year as part of a $17.5 million redevelopment, building owner and developer Ron Boji said.
Large windows go in at Michigan Central ` Take a drive by Michigan Central Station in Corktown and you’ll notice something new. One of the three large new windows in front of the building under renovation by Ford Motor Co. is now visible to the public. Ford has been renovating the property that it bought for $90 million from the Moroun family in 2018 to turn it into the centerpiece of an autonomous and electric vehicle campus expected to cost about $740 million, with $350 million of that for the former train station itself. “The new windows that surround the station’s ground floor main waiting room mark yet another important milestone as we bring this beautiful building back to life,” Ian Thibodeau, manager of corporate communications for Ford, said in a statement Thursday afternoon. There are more than 1,000 windows in the building, which for years was vacant and deteriorating after Amtrak stopped passenger service there in 1988. New windows are being installed in the historic train station.
WHY IT MATTERS: The addition would join a renewed plan for an RH store (formerly known as Restoration Hardware), which would reinforce downtown Birmingham’s retail presence.
| KIRK PINHO/ CRAIN’S DETROIT BUSINESS
` DETROIT SUES TO DEMOLISH PACKARD PLANT IN COURT THE NEWS: The city of Detroit has sued to get the owner of the Packard Plant to raze the historic property and foot the bill. The complaint, filed in March, asks Wayne County Circuit Court Judge Brian Sullivan to declare the 3 millionsquare-foot-plus site on Detroit’s east side a nuisance, force owner Fernando
Palazuelo to pay for demolition and clean-up if it’s ordered torn down, and make the city whole on unpaid bills. Charles Raimi, deputy corporation counsel, said in an email last week that the case heads to trial Jan. 24 at 9 a.m. to determine the fate of a handful of the
Packard Plant properties deemed dangerous by the city. WHY IT MATTERS: The case could determine a final fate for the mammoth plant, long considered a symbol of Detroit’s decay.
WANTED: MICHIGAN BUSINESS LEADERS
BLAZING NEW PATHS TO SUSTAINABILITY In a March 21 special section, Crain's will recognize exceptional individuals leading sustainability efforts improving the social, economic and environmental impacts of organizations in our state.
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2 | CRAIN’S DETROIT BUSINESS | JANUARY 10, 2022
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SHARING THE PAIN
NIC ANTAYA FOR CRAIN’S DETROIT BUSINESS
MANUFACTURING
A worker at AlphaUSA in Livonia checks the quality of steel parts. Nearly all of the manufacturer’s suppliers have given the company an ultimatum: Pay more or stop receiving material, an executive said.
Supply chain crisis shifts power balance between automakers, suppliers BY KURT NAGL
A brutal year for automotive suppliers has had an unexpected upside. The same problems that have pummeled their business, from soaring commodity costs to supply chain issues, have also given them a newfound power at the negotiating table with their automaker customers. While automakers have maximized on a surge in demand by converting low vehicle inventory into record sticker prices and strong profits, suppliers have suffered the brunt of financial losses. But, the supply chain crisis has laid bare the interdependency of each tier from top to bottom
and underscored the importance of players big and small. Suppliers have arguably never had as much negotiating power with automakers, experts say. Now they are using that leverage to change the way they do business with OEMs, which are feeling the pressure to acquiesce if they want to keep getting parts to make cars, according to industry executives and observers. “Historically, the automakers have had an enormous amount of leverage and have exerted it over the supply base,” said Thomas Walters, commercial litigator at Dinsmore & Shohl LLP who represents tier one, tier two and medium-size suppliers. “I think the OEMs are in a position where
they have no choice but to share in the pain with everybody else that’s in the same circumstance.”
Who will take the hit? Automakers have been reluctant to absorb the increased cost of parts, but over the past few months, suppliers have been turning up the call for relief. Companies including Cooper Standard Automotive Inc. have been asking customers to renegotiate contracts to recoup losses. Further down the supply chain, those requests have turned to demands as the supply crisis drags on and smaller companies fight to survive. Prices for raw materials in the
broader manufacturing sector increased 14.5 percent since the end of 2020, according to the Institute for Supply Management’s Semiannual Economic Forecast, released this month. Prices are expected to increase 8.1 percent next year. Companies have had some success in passing along those increases to customers, as indicated by the trade association’s survey of about 900 industry members. Around 64 percent of manufacturing executives said they have been able to pass through price increases. Just less than half said they expect business conditions to improve next year. See SUPPLY on Page 20
“I THINK THE OEMS ARE IN A POSITION WHERE THEY HAVE NO CHOICE BUT TO SHARE IN THE PAIN WITH EVERYBODY ELSE THAT’S IN THE SAME CIRCUMSTANCE.” —Thomas Walters, commercial litigator at Dinsmore & Shohl LLP
SUPPLY CHAIN
Lineage Logistics raises $1.7B for expansion, tech development BY KURT NAGL
Novi-based Lineage Logistics has raised $1.7 billion to expand its footprint and develop automation and supply chain technology in its quest for food distribution dominance. The fresh capital comes from new and existing investment firms, including BentallGreenOak, CenterSquare Investment Management, Cohen & Steers and D1 Capital Partners, the company announced Tuesday. It brings the total equity raised since the beginning of 2020 to $6 billion for Lineage, which has grown to become the largest cold storage com-
Novi-based Lineage Logistics employs more than 17,000 people around the world, including 235 in metro Detroit. | LINEAGE LOGISTICS
pany in the world through a massive streak of acquisitions. “This latest round of funding is further validation of our business strategy and will be used to double down on our commitment to offering innovative, end-to-end supply chain solutions for our customers worldwide,” Greg Lehmkuhl, president and CEO of Lineage, said in a news release. “As we head into 2022, this new equity gives us even more confidence in our ability to drive future growth opportunities for our business, the industry, and the wider food supply chain.” The company declined to comment further on the fundraising. The funding will be used to grow
the company through greenfield developments, facility expansions and clean energy investments. Since San Francisco-based private equity firm Bay Grove Capital LLC took over Lineage in 2008, the food storage company has maintained an aggressive “buy and build” expansion strategy. It moved headquarters from California to Novi in 2017. The company operates more than 400 temperature-controlled warehouses across 19 countries and employs more than 22,000 people, including 235 in metro Detroit. Contact: knagl@crain.com; (313) 446-0337; @kurt_nagl JANUARY 10, 2022 | CRAIN’S DETROIT BUSINESS | 3
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REAL ESTATE INSIDER
This early 20th century building at 118 W. Columbia St. in the Ilitch family’s District Detroit area sold at the end of 2021. | KIRK PINHO/ CRAIN’S DETROIT BUSINESS
Let’s guess who is buying more District Detroit property A F e e - O n l y We a l t h M a n a g e m e n t G r o u p
Michigan’s #1 Financial Advisor by both Barron’s* and Forbes** Charles C. Zhang CEO and Founder
101 West Big Beaver Road, 14th Floor Troy, MI 48084 (248) 687-1258 Minimum Investment Requirement: $1,000,000 in Michigan $2,000,000 outside of Michigan. Assets under custody of LPL Financial, TD Ameritrade, and Charles Schwab *As reported in Barron’s March 12, 2021. Rankings based on assets under management, revenue generated for the advisors’ firms, quality of practices, and other factors. **As reported in Forbes February 11, 2021 and August 16, 2021. The rankings, developed by Shook Research, are based on in-person and telephone due diligence meetings and a ranking algorithm for advisors who have a minimum of seven years of experience. Other factors include client retention, industry experience, compliance records, firm nominations, assets under management, revenue generated for their firms, and other factors. See zhangfinancial.com/disclosure for full ranking criteria.
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When I wrote last summer — happy 2022 — that a mystery buyer was purchasing key buildings in the District Detroit development area, I sugKirk gested that it was PINHO probably the Ilitch family gobbling up more properties in advance of a deal with billionaire developer Stephen Ross and that additional deals were likely to come. Well, guess what? First, there is an announced deal for Ross, the head of Related Cos., to develop a new graduate school campus for the University of Michigan as well as a tech incubator and 300 units of new housing in the District Detroit area. And in the last few weeks, more properties in the area have traded hands, according to public records. Some of the sales feature a buyer deploying the same tactics the buyers of the Film Exchange Building and Bookies Bar & Grille building, plus other parcels, used in 2021 to keep their identities secret. Brokers and land records say the early 20th century building at 118 W. Columbia St. has sold, as have a few small slivers of land. First, broker Steve Kiousis of Troybased Esq. Realty LLC, which represented seller Vernice Brown, declined to disclose the purchase price of the Columbia Street building. At one point in time, the building was known as the Wright Hotel, per a very ruin porn-y photo gallery that shows some signage, although its history is a bit of a mystery beyond that at this juncture. (If you know anything about this building, hit me up.) Second, several pieces of land on the block bounded by Elizabeth Street to the north, West Adams to the south, Cass Avenue to the west and Clifford Street to the east sold. Property records show deeds dated Nov. 5 for properties at 228 W. Adams, 248 W. Adams and 223 W. Elizabeth totaling 0.206 acres and selling for an estimated $2.33 million. It’s not known whether there are other properties involved in that deal
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FIRST HALF OF 2021 PURCHASES
LATE 2021 PURCHASES
1. Film Exchange Building 2. 219 W. Fisher 3. Bookie’s Bar & Grille 4. 135 W. Montcalm St. 5. 231 W. Elizabeth St.
6. 118 W. Columbia St. 7. 245 W. Elizabeth St. 8. 228 W. Adams Ave. 9. 248 W. Adams Ave. 10. 223 W. Elizabeth St.
that would account for the extremely high selling price for a trio of noncontiguous parcels of unimproved land. The building sold to 118 W. Columbia LLC, according to Kiousis, while the land sold to 204 Adams LLC, which is registered at a South Bend, Ind., UPS store; LLCs that bought the Film Exchange and Bookies buildings were also registered at UPS stores in metro Detroit. The 204 Adams LLC entity also bought property at 245 Elizabeth St., as I noted in my year-in-review column last month. Total cost so far for the land alone? $3.59 million. I don’t know yet how much was paid for the building, but I’ll let you know when I find out. An email was sent to a spokesperson for the Ilitch family’s Olympia Development of Michigan real estate company seeking comment.
community company is growing its portfolio of properties with a new joint venture that will give it a stake in 13 locations in Tennessee. American House Senior Living Communities has purchased an undisclosed ownership stake in the Elmcroft Senior Living campuses that have 875 units for an undisclosed price, according to a news release. The other owner is Chicago-based REIT Ventas Inc. (NYSE: VTR). The deal puts American House’s portfolio at 70 properties and roughly 5,700 units. Dale Watchowski, president and CEO of American House, said in the release that the deal, the price of which was not disclosed, helps the company by “fulfilling our strategic vision to expand our business throughout markets in the Southeast.” “Additional plans include new developments and acquisitions in the Carolinas,” he said.
American House adding Tennessee properties A Southfield-based senior living
Contact: kpinho@crain.com; (313) 446-0412; @kirkpinhoCDB
4 | CRAIN’S DETROIT BUSINESS | JANUARY 10, 2022
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SPONSORED CONTENT
CARING FOR KIDS
Host Larry Burns, President and CEO, The Children’s Foundation
Advocating for the mental health and wellness of Michigan kids
Advocating for the health & wellness of children and families
About this report: On this monthly radio program, The Children’s Foundation President and CEO Larry Burns talks to community, government and business leaders about issues related to children’s health and wellness. This hour-long show typically airs at 7 p.m. the fourth Tuesday of each month on WJR 760AM. Here’s a summary of the show that aired Dec. 28; listen to the entire episode, and archived episodes, at yourchildrensfoundation.org/caring-for-kids.
Derek Dickow, Keynote Speaker and Executive Coach
John McInerney, President and Executive Director, Buildup STEAM
Larry Burns: What are some key pointers for networking?
Larry Burns: Tell us about Buildup STEAM.
Dickow: The number one thing is to be intentional about building your network the right way. From my vantage point, about 60 percent of people are just terrible at networking. Another 30 to 35 percent are what I would identify as well-intentioned introverts. I encourage those people to not think about making an impact with 500 people, but to focus on just three. Three is the number of sustainable, quality interactions that you can challenge yourself to have at any event.
John McInerney: At the beginning, it was a very humble effort. I’d bring in LEGO and a few robots and set them up in the activity rooms at Mott Children’s Hospital in Ann Arbor. If anyone wanted to build a robot, I’d show them how to do it. I was doing that for about a year, and one day I got everything set up, ready to go, and no one showed up to the activity room. I thought, “It’d be better if I could just go to them.” The idea for the original program, Buildup Mobile, was born. I put everything into a cart and started going bedside to work with the kids. At that point I became a contractor for the patient technology team.
Before anyone goes into an event, always have a couple of things in mind. Number one, what are my goals? That focus keeps you grounded and on task. Number two, always reach out to the event organizers. Let them know that you’re excited about attending the event and ask if there is anybody specifically that you should meet. Then, research in advance the people that you want to meet. Sometimes, I’ll reach out to people a week or two in advance of a big major event, and say, “Hey, I see that you’re attending the same event. I did some research on you. I find what you do to be very interesting. I would appreciate maybe five minutes of your time for a formal handshake and an opportunity to introduce myself to you.” When I make that introduction, I’d say about 98 percent of people are willing to meet me. It’s important to maximize and be as efficient as possible. The biggest point I make with people when they’re meeting someone for the first time is to forget about business cards. Your only job is to understand who they are, what they’re focused on, what their goals are, and what interests and excites them. Listen with your eyes and nod your head to demonstrate that you’re paying attention and fully absorb what they’re after; your goal is to add value. For most people, the one thing that they’re after is to meet the next person that could change their career. If you’re paying attention, they often will tell you where they need to go. Our job as good networkers and power connectors is to bring those people together and unite the world.
Burns: How did it evolve to where you are today? McInerney: The reactions of the patients and families kept me going. There were some moments that really inspired me to continue working on this project. There was this little guy, maybe 5 to 7 years old; it was his last day at the hospital, but he didn’t want to leave until he built a robot. We built a race car with a motor, and we ended up going all the way around the unit. He called it his victory lap. Burns: They don’t take the LEGO with them? McInerney: No, everything stays within the hospital. Burns: You were successful in getting a grant from The Children’s Foundation. McInerney: Our goal is to continue to expand the program and work with as many kids as we can. This grant was our first opportunity to train someone else to run the program independent of me. We trained a schoolteacher who was interested in a career in Child Life. She was at the Children’s Hospital of Michigan for seven months. I just wrote her a letter of recommendation for her practicum, the next level in Child Life.
Kristin Rohrbeck, Director, Joanne and Ted Lindsay Foundation Autism Outreach Services (OUCARES) at Oakland University Larry Burns: Tell us about the autism outreach services. Kristin Rohrbeck: Oakland University Center for Autism (OUCARES) started in 2004 with one outdoor soccer program for about 20 families with young children impacted by autism. Now we offer over 100 programs every year to over 2,200 people. Those programs include things like recreational sports, social skills programs and clubs. We do a lot with adults, especially related to employment readiness training. Support begins at age three and we offer programs throughout the entire lifespan for individuals on the spectrum. We also have programs for anyone who also supports people with autism, including parent training and events for educators. Burns: What is the partnership like with the Ted Lindsay Foundation? Rohrbeck: The Ted Lindsay Foundation was wonderful in helping acknowledge the hole in services and supports for teens and adults with autism spectrum disorders. There wasn’t enough to support that sector of the population. They gave us an endowment in 2018, and now OUCARES is officially the Joanne and Ted Lindsay Foundation Autism Outreach Services. Burns: You mentioned that support starts at age 3, but hasn’t one of the issues been that kids aren’t diagnosed until 5 or 6 years old, or even older? Rohrbeck: Early intervention services and diagnostics have been developing more so kids can get diagnosed when they’re in infancy or toddlerhood. The U.S. Centers for Disease Control and Prevention are showing that at least 1 in 44 children are now being diagnosed with autism. There has been a 241% increase in the prevalence of autism since the year 2000.
Burns: Do you want to be in more hospitals?
Burns: What are some new developments in the field? Rohrbeck: Insurance in Michigan now often covers autism services through age 21. We also have public school services for some individuals up to age 26.
Dickow: I’ve not met a successful person in my world that doesn’t have some charitable foundation or philanthropic cause that they don’t have passion about.
McInerney: That’s the dream — to be able to continue expanding this program to new hospitals, new spaces. Patient technology is something that is catching on in more hospitals. This past year, the first patient technology conference happened. It was exciting to be a part of that and to see other hospitals with patient technology programs where my program, like it did at Mott, could be part of that.
Burns: Tell us about your leadership summit ideas and what you hope to do in the year ahead.
Burns: If anyone would like to help you expand, how do they get a hold of you?
Dickow: This was our fourth year of producing these types of events. There were three different panels that we produced with keynote speakers. Our role is to provide as much value as we can to our sponsors, to our attendees and to the service providers. We provide a power hour of speed networking; I did a 10-minute keynote on best practices of how to build your network, asking the right questions and helping people understand how to elicit positive responses.
McInerney: Our website is www.buildupsteam.org. You can directly contact me through it and get other information. You can also donate through the website. If we fundraise enough, we can partner with a hospital and fund the program for at least a year.
Burns: Leaders for Kids raised over $50,000 in an evening. Was there a thought of combining philanthropy with professional networking?
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Burns: What is The Children’s Foundation grant supporting? Rohrbeck: The nearly $40,000 grant will be used to implement virtual reality and augmented reality technology to help teach emotion regulation, awareness and social skills to individuals with autism. Burns: Do you have any advice for families who may suspect a loved one has autism? Rohrbeck: OUCARES is a huge resource for the community. You can send an email and connect with us at oucares@oakland.edu or call us anytime at 248-370-2424. Burns: Anything else to know? Rohrbeck: Oakland University has a great center for autism. Our center hosts an Applied Behavior Analysis (ABA) clinic for children. We also have great academics for people who want to learn to be a professional or an educator to support people on the spectrum.
JANUARY 10, 2022 | CRAIN’S DETROIT BUSINESS | 5
COMMENTARY
Michigan must invest in roads to invest in jobs BY DENNIS G. KOLAR
COMMENTARY
7 billion reasons why Lansing bipartisanship may last longer
W
hen it comes to actual bipartisanship in Lansing, December was a month to remember. Democratic Gov. Gretchen Whitmer and the Republican-controlled Legislature she’s sparred with so much over the past three years were united in re-arming Michigan’s economic developers with taxpayer incentives as the state scrambles to keep the auto industry firmly rooted here. With minimal debate, lawmakers and Whitmer plopped down $1 billion on a jobs-buying bet aimed at landing billions in new investment from General Motors Co., semiconductor manufacturers and other large-scale industrial businesses. The new cash incentives fund designed to subsidize manufacturing jobs was the biggest gift under a Christmas tree full of goodies for Michigan’s business community and overshadowed the renewal of the transformational brownfield law through 2027. In any normal environment, tacking on five years to the law billionaire businessNOTHING IS Dan Gilbert lobNORMAL THESE man bied for in 2017 to build his still-unDAYS IN der-construction skyLANSING WITH scraper in Detroit would have conALL OF THE sumed all of the oxy“FREE” MONEY gen in Lansing for a LYING AROUND. month. But nothing is normal these days in Lansing with all of the “free” money lying around. That’s why there are at least 7 billion reasons to believe the Capitol kumbaya may continue for another few months before the Democratic governor and GOP lawmakers make a full pivot into what’s shaping up to be one of most consequential elections in a generation. Lawmakers are sitting on a $7.1 billion pile
Chad
LIVENGOOD
of federal stimulus bucks, $5.3 billion of which is discretionary and comes with few strings attached. (They can do almost anything with the money except cut taxes and pay down pension debt). Then there’s the revenue-estimating conference on Jan. 14, which could foretell even more surplus tax dollars overflowing in the state’s coffers. All of this could be the makings of a Lansing spending spree of historic proportions. Or it could devolve into a partisan stalemate until after the November election, when voters decide whether Whitmer deserves four more years and Democrats get their best shot in 40 years to reclaim control of the Michigan Senate with newly drawn districts. Though GOP lawmakers may want to hold back a chunk of the stimulus cash, simply sitting on billions of dollars through Election Day to harm Whitmer will make them look like obstructionists. A lot may depend on whether Whitmer and lawmakers can land the big-buck economic development project they spent December chasing. See LIVENGOOD on Page 7
MORE ON WJR ` Crain’s Executive Editor Kelley Root and Managing Editor Michael Lee talk about the week’s stories every Monday morning at 6:15 a.m. Mondays on WJR 760 AM’s Paul W. Smith Show.
Write us: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited for length or clarity. Send letters to Crain’s Detroit Business, 1155 Gratiot Ave, Detroit, MI 48207, or email crainsdetroit@crain.com. Please include your complete name, city from which you are writing and a phone number for fact-checking purposes.
LARRY PEPLIN FOR CRAIN’S DETROIT BUSINESS
Gov. Gretchen Whitmer signs legislation Dec. 20 establishing a new $1 billion economic incentives fund for luring new business investment to the state at a bill-signing ceremony alongside a bipartisan group of political, education and business leaders at Wayne County Community College District’s Eastern Campus on Conner Street in Detroit. | MICHIGAN GOVERNOR’S OFFICE
Our state Legislature has a newly re-found interest in creating economic incentives to attract and retain businesses to the state. Unfortunately, they are missing one of the most productive incentives that other states use to Dennis G. Kolar attract and retain emis the managing ployers — fixing the director of the roads. Road I applaud the LegislaCommission for Oakland County. ture’s desire to attract and retain jobs. However, our officials, somehow, seem blind to the fact that one of the largest incentives used in many other states is fixing or improving the roads to accommodate new economic development. This is frustrating given that, for the first time in probably generations, our state coffers are actually flush with cash at the moment. If you talk to developers who do business in multiple states, you will often hear the same chorus: The roads are much better in X state, and the state offered to make improvements to the roads when I built an office park/manufacturing facility/warehouse development, etc. Clearly those other states recognize that roads and jobs are inexorably related. If a business’s employees or suppliers are not likely to be able to easily get in and out of its facility, or if they must dodge potholes in doing so, that is a significant disincentive to build or expand in that location. This problem would not be so glaring if Michigan had adequately funded its roads in past decades, but it has not. Prior to 2017, when increased state road funding finally began to flow, Michigan consistently ranked in the bottom nine states in the nation in per capita state and local road funding — for the last 50-plus years. While the increased funding included in the 2015 state road-funding package (which was phased in starting in 2017), has helped the state’s road agencies make improvements to the road system, the reality is the system was in such poor shape prior to that, that it will take many more years to catch up with most other states. Even though there was an inflation factor built into the road-funding package, unfortunately, we expect inflation to catch up with that new funding starting in 2025. At that
time, the new funding will begin to lose buying power, and we predict the condition of the road system will again begin to decline without additional funding. Even more concerning, there are currently legislators who are trying to eliminate the inflation factor, which would only further exacerbate the road-funding crisis. There are, however, several road-related steps the Legislature could take to help attract businesses, retain existing businesses and improve the quality of life for state residents. First, the state could direct some of its current surplus revenue to roads. This would have an immediate bang for the buck: In addition to the obvious improvement in road conditions, increased road funding creates well-paying jobs (both public and private sector) that cannot be shipped overseas. And while there may be a labor shortage at present, data and common sense suggest that will not last forever. Second, the state could create a dedicated, long-term funding source for increased road funding — as virtually all state leaders committed to doing when they enacted CLEARLY OTHER the 2015 road-funding package (ac- STATES knowledging at the RECOGNIZE THAT time it was a “good start,” but not the ulti- ROADS AND JOBS mate solution). Third, they could ARE INEXORABLY tie some of the cur- RELATED. rent state excess revenue to road-related economic incentives. For example, if you agree to bring or retain X number of jobs in Michigan, the state will commit dollars to improving the roads in the vicinity of your facility. I predict that tying economic incentives to roads would be more successful than the system of picking economic development winners and losers that the state relied on in the past, and which the Legislature is currently pushing. Finally, we must also address electric vehicles. While the 2015 package did increase registration fees for electric vehicles, they still are not paying their fair share for the roads (since they don’t pay gas taxes). This problem is only going to get worse as the number of electric vehicles grows. I encourage the Legislature to give these ideas some thought and not miss this oncein-a-lifetime opportunity to finally address our roads while helping to ensure that Michigan stays competitive with other states.
Sound off: Crain’s considers longer opinion pieces from guest writers on issues of interest to business readers. Email ideas to Managing Editor Michael Lee at malee@crain.com.
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GM has signaled it will likely decide as soon as this month whether it will build a $2.5 billion battery plant west of Lansing next to the automaker’s Delta Township Assembly Plant. Negotiations with GM now rest with the Michigan Economic Development Corp. and the Michigan Strategic Fund, which has a board meeting Jan. 25, when big deals like this would ordinarily emerge. Whitmer and MEDC CEO Quentin Messer Jr. also have been in hot pursuit of a semiconductor plant project to help address the microchip shortage afflicting Michigan’s automakers and suppliers. But to put it bluntly, this GM battery plant is a must-win for Whitmer. At this stage in EV race, GM passing up Michigan for a battery plant would be worse than the automaker’s decision to shutter its Willow Run assembly plant in the early 1990s (which got Michigan into the tax incentives arms race in the first place). Without a nearby battery plant, existing assembly plants are less likely to be retooled for electric vehicles in the future and more likely to be shuttered. That’s what drove the lightning-fast approvals in Lansing — home of two GM assembly plants — last month for breaks on local taxes and electricity from Lansing Board of Water & Light. Since pivoting in mid-2021 from being the tough-on-COVID governor, Whitmer has staked her re-election on being the jobs governor. Some 16,000 new auto industry jobs since Whitmer took office in January 2019 is a daily talking point. Republican lawmakers jumped in line for this $1 billion jobs fund after feeling the body blow of Ford Motor Co.’s decision to invest $11.4 billion in electric vehicle and battery plants in Tennessee and Kentucky. Legislators from counties where the manufacturing base is predominantly auto suppliers championed this issue because the future of their hometowns is twisting in the wind. Sen. Ken Horn (from Saginaw County, home of Nexteer Automotive’s plant) and Rep. Ben Frederick (from Shiawassee County, home of CIE Automotive’s Machine Tool & Gear Inc. parts plant in Owosso) were the driving forces behind the $1 billion fund. Horn and Frederick recognize the auto industry is now hurtling toward an electrified future where there will be far fewer parts needed to propel an automobile with a lithium battery. Even though many Republicans still deny climate change is real, they aren’t putting their heads in the sand over the forthcoming economic upheaval that Michigan will face when the internal combustion engine goes the way of Billy Durant’s horse-powered carriage company. Now the question is what other common ground rural Republicans like Horn and Frederick can find with Whitmer on making strategic investments in the state’s future with the $7 billion federal windfall before election mode takes over. The Legislature’s Republican leadership has priorities that don’t align with Whitmer’s focus on scoring big economic wins. Senate Majority Leader Mike Shirkey wants to overhaul the delivery and management of Medicaid mental health. House Speaker Jason Wentworth wants to rein in the business practices of pharmacy benefit management
DALE G. YOUNG FOR CRAIN’S DETROIT BUSINESS
LIVENGOOD
From Page 6
companies that manage prescription benefits for health insurers. Look for those two issues to be leveraged in negotiations over big-ticket stimulus spending sometime between now and December. Just before Christmas, Whitmer told Capitol reporters the billions of dollars in one-time federal funding offers a lot of “opportunity” in the months ahead. Whitmer said she stands on “common ground” with Republicans in developing more affordable housing, getting more workers trained for jobs of the future and fixing the state’s aging water infrastructure — all areas that could be funded with the state’s federal stimulus largesse. “But I don’t think that window is open in perpetuity,” Whitmer said. Contact: clivengood@crain.com; (313) 446-1654; @ChadLivengood
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JANUARY 10, 2022 | CRAIN’S DETROIT BUSINESS | 7
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IN THIS PACKAGE ` 3D scanning company was well-positioned during COVID-19. PAGE 10 ` Brighton-based pharma startup bets big on build-out of drug manufacturing space. THIS PAGE
CRAIN’S MICHIGAN BUSINESS: LIVINGSTON COUNTY
Also at crainsdetroit.com: ` Funding round gives device company marketing budget, credibility. ` Company markets simple devices to improve security in schools.
TOM HENDERSON/CRAIN’S DETROIT BUSINESS
ROOM TO GROW
Workers behind a glass wall working in the larger lab of the two working labs at Bryllan LLC.
Brighton-based pharma startup bets big on build-out of drug manufacturing space `BY TOM HENDERSON Brighton-based
Bryllan LLC launched as a startup pharmaceutical company with a grand vision — and grand funding. Its founders targeted an industry niche, doing research and development for other pharma companies on potentially potent and dangerous live viruses, antibodies, vaccines, hormones and cytotoxic compounds. Grand? Without a single customer, in 2015 the company did an expensive build out of 178,000 square feet of manufacturing, lab space, warehousing and cold and frozen storage in a building on Grand River, east of downtown Brighton, that formerly was the home of Cars and Concepts, a specialty-vehicle manufacturer founded in 1977 that in its heyday was a $100 million-a-year business. Bryllan’s space is spread out over two floors. The entire ground floor is filled with eight separate HVAC systems. (Most buildings only have one.) The plan was that as the company grew its business and its production capabilities, it would segregate its manufacturing into separate walled off clean rooms, each with its own heating, cooling and ventilation system, to protect against cross-contamination.
CEO Douglas Bryans outside the Bryllan plant. | TOM HENDERSON/CRAIN’S DETROIT BUSINESS
Employees engaged in R&D or manufacturing don sterile gowns, head and beard coverings and booties for their feet. They work behind glass walls and are separated from the compounds they work on
by more interior glass walls. That interior room is called an isolator, and employees access compounds with their arms extended through long sleeves made of a special rubber that is resistant to the hydrogen
peroxide used to sterilize the area. The big vision for Bryllan came with a price tag of about $24 million, which was paid for by friends and family — an extremely large friends-and-family round as early funding goes. Investors included the late Richard Kughn, a legendary entrepreneur and longtime executive at the Taubman Co. who once owned the Lionel trains company; his son, Gary; and Laurence Winokur, a partner at the law firm of Dickinson Wright who had been the lawyer for both of them. It founders were Douglas Bryans, who had a long career in the pharma industry, including management stints at Somerset, N.J.based Catalent Pharma Solutions and at Dublin, Ohio-based Cardinal Health Inc.; and Allan Pfitzenmaier, for many years the president and owner of West Bloomfield Township-based Vectech Pharmaceutical Consultants Inc., which provided engineering and regulatory-compliance consulting to the medical products industry. See BRYLLAN on Page 11
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Welcome, Jon Kreucher.
Howard & Howard is pleased to welcome Jon D. Kreucher as our new President and Chief Executive Officer.
CRAIN’S MICHIGAN BUSINESS | LIVINGSTON COUNTY
CEO John Chwalibog (left), director of human resources Kelly Chwalibog and board member Michael Roth of Virtual Technology Simplified LLC. | TOM HENDERSON \CRAIN’S DETROIT BUSINESS
NEW DIMENSIONS 3D scanning company was well-positioned to ease transitions to virtual worlds during COVID-19 BY TOM HENDERSON
Virtual Technology Simplified LLC, a Brighton company that offers 3D scanning of building interiors and exteriors, closed on a funding round of $2 million in July, money that founder and CEO John Chwalibog says was badly needed to continue funding “a hockey-stick growth curve.” Bloomfield Hills-based Vlasic & Roth LLC, an M&A and advisory firm located in Bloomfield Hills, organized the round. VTS uses 3D-capture technology, often involving drones and lidar technology, to help companies do facility management of large buildings, conduct insurance appraisals and inspections and — a major focus — help telecom companies decide if there is enough room and infrastructure support on the roofs of buildings where they might want to place equipment. Lidar, which stands for light detection and ranging, is a remote sensing method that uses light in the form of
a pulsed laser to make measurements. A lidar instrument generally uses a laser, a scanner and a specialized GPS receiver. VTS was founded in 2017, but it wasn’t until 2019 that Chwalibog took the plunge and left the secure, high-paying corporate world for a life of full-time entrepreneurship. He had spent more than 20 years in management positions at several large corporations, focused most recently on companies and projects involving 3D modeling and laser scanning. His last job was with Sunnyvale, Calif.-based Matterport Inc., which uses 3D imaging and virtual reality to create accurate maps of areas and model interior spaces. “I left my job and took the plunge. I said, ‘I’m going to jump off the cliff and do this.’ Then COVID hit, and the brakes were put on everything,” he said. In April 2020, Ann Arbor Spark helped the company, which has two provisional patents for its technology, get a $5,000 COVID-relief grant through the Michigan Economic De-
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Gregg Schkade, drone pilot and scan technician, on the CobraVision project. | VTS
velopment Corp.’s Michigan Small Business Relief program. That summer, though, business began picking up, said Chwalibog, as companies and individuals adjusted to a virtual-reality world. Museums that were suddenly closed to visitors wanted to put up 3D tours on their websites; insurance companies found it more convenient to have VTS send its crews to visit and document the damage related to insurance claims; telecom companies suddenly needed more rooftop capacity for their equipment; and energy companies with wind-turbine farms wanted drone-conducted assessment of blades and other infrastructure. Crown Castle of West Mifflin, Pa., leases more than 40,000 cellphone towers around the U.S. to T-Mobile, AT&T and other telecom companies, with smaller towers often going on the rooftops of office buildings. The company uses VTS to do 3D assessments of rooftops to see if there is enough room to install its equipment. Final numbers aren’t in, yet, but Chwalibog says 2021 revenue will approach $4 million, up nearly 400 percent from 2020, and projections are for another increase of up 300 percent this year. The fundraise by Vlasic & Roth was key to that projected growth and the hiring it will require. VTS employed six in December 2020. It is at 21, now, including the recent hiring of its first full-time recruiter. Plans are to hire one or two employees a month over the next year. “I never imagined we’d need a fulltime recruiter. It’s quite a threshold,” said Chwalibog. VTS also has 40 subcontractors nationally. The company has a small office in Manhattan and a handful of
employees who work out of their homes in different states around the country, including an employee in Colorado and one in Kentucky who were hired in November. The Manhattan office came in handy last year when VTS was hired to do an inspection of an 80-unit apartment complex in the Bronx after it was seriously damaged by fire. VTS landed a big job in 2019, creating a 3D virtual tour of the Ford Piquette Avenue Plant museum in Detroit that executive director David Platt wanted to put up on his home page, where visitors who clicked on the link could take a self-guided tour through the 67,000-square-foot former auto plant. The three-story plant was built in 1904 at the then-stunning price of $76,500. Ford’s first Model Ts rolled off the line there in 1908, and 12,000 of them were built there and shipped out by train until Ford moved to a new plant in Highland Park, selling the Piquette plant to Studebaker in 1911. Visitors to the museum’s website can use their mousepad to zoom in, look left or right or move on to another room or display, heading up the stairs or even sitting themselves in one of the 65 or so cars that were on display when John’s wife Kelly Chwalibog, director of human resources for VTS and jack of all trades, including camera person, took an in-person shooting tour with her gear. The 3D tour was posted in February 2020. A few weeks later, COVID hit and, like everything else, the museum shut its doors to visitors — but not to website visitors. “It was very well done. They did it in great detail, and it absolutely exceeded my expectations,” he said. “You can be on tour for a few minutes
or hours. I’ve had teachers from Maryland to California and some from Europe who found us during COVID and told me they’re using it in the their classrooms.” To date, more than 31,000 visitors to the museum’s website have taken the 3D tour. Jason Buettner is vice president of solutions engineering for Chanhassen, Minn.-based CobraVision LLC, a consulting and engineering firm that does safety monitoring for power companies. He said that as a result of help from VTS, he landed a lucrative and ongoing project with Ameren Corp., a Fortune 500 company that trades on the New York Stock Exchange. St. Louis, Mo.-based Ameren operates transmission lines in Illinois and Missouri. Over the years, it has acquired smaller electricity providers and many hundreds, if not thousands, of transmission towers in various states of disrepair. It wanted to replace many of them, but most did not have documentation about their weight or dimensions. Not knowing what they were dealing with in the early stages of replacing them, demolition contractors hired by Ameren brought in huge cranes that Ameren thought might be unnecessarily costly. “It was costing Ameren tens of thousands of dollars a day to rent big cranes, and the company asked us if we could begin investigating with drones or lidar technology how big or heavy those towers are,” said Buettner. “We looked into a number of companies to help us do this, and we landed on VTS. People at Phoenix Lidar spoke pretty highly of VTS. They said we needed to call them.” Phoenix Lidar Systems is based in Austin, Texas. Buettner called VTS and last July, a small team flew out to St. Louis to do some tests on a tower that Ameren knew all the dimensions of as a test case. VTS was willing to work without charge to prove its capabilities. It used drones, lidar technology and software to come up with a projected weight of the tower. “It was pretty awesome. VTS was off just 2.3 percent. Ameren’s own engineers were off by 20-30 percent and took weeks of climbing and measuring. VTS flew its drones for 20 minutes and we had our calculations in two or three days,” said Buettner. He said the company has taken down one tower since — but that Ameren wants to take down up to 200 towers a year. Roger Goble, owner of the sprawling 100,000-square-foot Legacy Center athletic complex in Brighton, is one of VTS’ investors. He said Chwalibog was part of the team that helped him develop the plans for Legacy, which broke ground eight years ago, and they’ve stayed in touch. It claims to be Michigan’s largest multisport complex, with more than 90 acres of facilities, including seven outdoor sports fields, a dome of 104,000 square feet, a field house of 101,000 square feet and a 12,000-square-foot baseball training facility. “I was a sounding board, coach and mentor to push him over the edge and do it,” said Goble. “He was approaching the age where he’d either do it or hunker down and stay in the corporate world. Lo and behold, he pulled the trigger.” Contact: thenderson@crain.com (231) 499-2817; @TomHenderson2
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CRAIN’S MICHIGAN BUSINESS | LIVINGSTON COUNTY
BRYLLAN
From Page 8
CONGRATS
Bryans is now president and CEO. Pfitzenmaier, the founding CEO, has retired but still serves on the board of directors. Bryllan is a combination of their first names. Pfitzenmaier’s son, Mark, is vice president of operations. “I all along said this company was going to be successful and was going to need a lot of space,” said Bryans. Much of the space on the second floor is still unused. Only two manufacturing lines are in operation, a smaller one for R&D projects and a bigger one for larger volume manufacturing, but Bryans said he will bring four more production lines online later this year. Bryllan is involved in two COVID-related projects on the R&D line, both involving small batches needed for ongoing tests for the Food and Drug Administration, one a vaccine and one a therapy for use to mitigate the effects of COVID. “If we get approvals, there will be a dramatic ramp up in the middle of the year,” he said. The company got its first contract in 2016, with the U.S. Department of Defense, to make a new antidote for mustard gas. It now claims 40 contracts. It had six employees in 2016, employed 36 a year ago and has 79 now. Bryans expects to be at 100 by the end of the second quar-
A lab worker in sterile conditions in the Bryllan facility. | TOM HENDERSON/CRAIN’S DETROIT BUSINESS
ter and 150 by the end of the year. “A lot of our employees are new graduates of state universities, science majors and engineers, with $30 an hour the starting wage,” said Bryans. He said he expects to double revenue this year to about $22 million, with projections to at least double that in 2023. To fund that growth, Bryans hopes to raise a funding round of $20 million later this year and says he has had talks with institutional investors and some European pharmas. He also expects at least some of the friends and family investors
to re-up. Growth last year came despite supply-chain issues involving such things as glass vials, stoppers, tubing and filters. “Things have gotten better. Manufacturers have added capacity,” said Bryans. “The ability to make more toxic drug products in a safe environment was an idea whose time had come,” said Winokur. “Our concept of separating suites and individual heating and cooling units was what the market needed. I’m very happy with the way things are going.” “Gary and Allan recognized there were going to be new drugs coming
online that needed better manufacturing facilities. They knew the market and knew there was a dearth of manufacturing available for the new paradigm,” said Gary Kughn. “I knew Larry for 40 years and got him involved at the start and two or three years later, I got my dad involved. Today, we’re growing by leaps and bounds. Over the next five years, we’re going to take this company to where it has significant value. Investors are jazzed about it.” Tom Nichol is another of the friends-and-family investors, who heard about Bryllan from Gary Kughn, his former next door neighbor. Nichol was then president of Temperance-based Rolled Alloys Inc., which supplies materials to makers of parts for jet engines. He said he met Bryans soon after construction was finished at the plant. “We immediately hit it off. I liked the culture he was building, the commitment to quality and customer service,” said Nichol. “They had a good business plan, making higher quality, smaller quantity specialty drugs. We’ve gotten this far with almost no marketing. That’s one of the things for the next stage.” Zach Taylor is vice president of Onpharma Inc., a pharma company based in Carson City, Nev., that makes anesthetic products for dentists and oral surgeons. He said Bryllan was one of eight companies he interviewed to be a subcontrac-
tor soon after Bryllan began operations. He wanted the company to do research on how best to make what are called buffering compounds, using sodium bicarbonate to improve the efficiency of such painkillers as articaine, lidocaine, prilocaine and mepivacaine. The buffering compounds immediately raise the pH levels in patients who have received shots. Instead of them having to wait 10-15 minutes for full numbness to take hold, the increased pH levels allow patients to be fully numbed immediately, which allows them to spend less time in the office and for dentists to see more patients in a day. “What I like is Bryllan is a small, agile business willing to make something happen. It’s not locked into a two-year lead time when you need something,” he said. “They’re a jewel. They have great people. I’ve been very impressed. It’s been a great experience.” Bryllan loads the buffering agent into small cartridges, which Onpharma sells to dentists, who use an Onpharma tool to mix it with the painkillers in single-dose amounts. Taylor said he has built his buffered anesthetics line of business to where he will now require much more product. “We are sole-sourced with Bryllan. They can get me off their R&D line, now, and into their automated production line.” Contact: thenderson@crain.com (231) 499-2817; @TomHenderson2
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SOUTHEAST MICHIGAN’S
Each year, Crain’s Detroit Business recognizes the year’s Newsmakers — leaders who made headlines, for good or for ill, and made a difference in metro Detroit and Michigan. This year, they were people who led amid the adversity of COVID, waged business feuds, pledged huge amounts to good causes, bought and sold iconic companies and more.
Mat Ishbia, Chairman and CEO, UWM Corp. 2021 was one for the memory books for Mat Ishbia. The president and CEO of Pontiac-based mortgage company UWM Corp. completed what was at the time the largest SPAC deal in history at $16 billion. For Ishbia, 2021 has largely consisted of learning the ropes of being a CEO at a public company, as opposed to just a mortgage lender. “If you want to call me about wholesale mortgages, I know the game inside and out,” he told Crain’s. “I can tell you everything about it and it’s what I do for a living for 18 years. Being a public company CEO, I’m still learning that game.” While the overall mortgage sector remained strong in 2021, and UWM continued reporting strong earnings and growing levels of mortgage production, market acceptance of UWM stock (NYSE: UWMC) — and other public mortgage companies — has been lackluster. UWM stock was down about 50 percent through the end of last year. “It is what it is,” said Ishbia, 41. “I can control the company. I can’t control the stock price.” The company also launched its
“All-In” initiative, geared toward bolstering the wholesale channel of the mortgage sector, one in which UWM dominates. In order to keep doing business with UWM and other wholesalers, brokers around the country had to pledge to cease doing business with its chief rival, Detroit-based Rocket Mortgage, as well as Fairway Independent Mortgage.
Ishbia has repeatedly labeled the initiative a success for the entire wholesale channel. While running day-to-day operations of one of the nation’s largest mortgage companies kept Ishbia plenty busy last year, he also used 2021 — the year he became among the wealthiest Michigan residents — to solidify a position as a chief boost-
T er for athletics at his alma mater, Michigan State University, where he played basketball under coach Tom Izzo. For starters, Ishbia gave $32 million — the largest single donation in university history — to university athletics. Most of the money is set to be used to renovate the Skandalaris Football Center, including improvements to the football auditorium and expansion of the weight room. To that end, right around Thanksgiving, Ishbia surfaced as one of two major private donors contributing an undisclosed amount to the $95 million contract extension for MSU football coach Mel Tucker. While Ishbia and fellow metro Detroit CEO Steve St. Andre of Birmingham marketing firm Shift Digital have been somewhat public about their contribution toward the Tucker contract, Ishbia said he prefers to remain in the background going forward. The MSU administration, he said, is who deserves the credit. “I’m just a fan and a former basketball player,” he said. — Nick Manes
“IF YOU WANT TO CALL ME ABOUT WHOLESALE MORTGAGES, I KNOW THE GAME INSIDE AND OUT. ... BEING A PUBLIC COMPANY CEO, I’M STILL LEARNING THAT GAME.” — Mat Ishbia, UWM Corp. chairman and CEO
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h b
a s H a i d i b c s
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CRAIN’S NEWSMAKER OF THE YEAR 2021
Wright Lassiter III, President and CEO, Henry Ford Health System
“THIS HAS BEEN A TWO-YEAR WAR. NORMALLY IN WARS YOU HAVE RESERVE PLATOONS YOU BRING IN FROM THE SIDELINES AND RETIRE OTHERS. WE DON’T HAVE THAT ABILITY .”
DALE G. YOUNG
— Wright Lassiter III, Henry Ford Health System president and CEO
Last year started hopeful. The COVID-19 vaccine had found its way to hospitals and health care workers were getting inoculated against a disease that nearly incapacitated the industry only months earlier. There appeared to be light around the next bend in the pandemic. But the promise of an end to the pandemic was met with more darkness. “Going into 2021, we were seeing a decline in hospitalizations across the U.S. and Michigan. There was a great sense of hopefulness,” said Wright Lassiter III, the CEO of Detroit’s Henry Ford Health System. “We were excited to start the process of vaccinating the broader community. We had a path to see the COVID-19 pandemic in the rearview mirror opposed to the windshield.” A new surge of the coronavirus returned in the spring, coupled with an ongoing reticence from large swaths of the public armed with misinformation to get the vaccine, stymied the results of the early efforts. Still, Henry Ford under Lassiter pushed on. The health system launched vaccine clinics and used mobile units to get into Detroit neighborhoods and elsewhere around the metro Detroit region to vaccine skeptics and the homebound alike. It was an act of leadership in a year that also included sealing a new partnership with Michigan State University and a key role in making a Mackinac Policy Conference happen in person. For all that, Lassiter is Crain’s 2021 Newsmaker of the Year. The vaccine mandate was immediately met with pushback, including a brief lawsuit from about 50 employees that was later withdrawn. “Bottom line, coming to the decision was not hard,” Lassiter said. “With the role we play in the community, we want to create the safest environment we possibly can for our 33,000-plus team members. We had a strong con-
viction that it was our obligation ... We believe strongly that having every person vaccinated made sense. That decision wasn’t difficult, but the execution and implementation were the questions. Those known and unknown consequences. It was a scary time in our organization.” At the time, around 40 percent of Henry Ford’s staff was unvaccinated and management instituting a mandate meant those people could no longer come to work unless they followed those orders. Lassiter said the goal was to reach an 85 percent vaccination rate among workers. Inevitably, the plan worked as only 400 of Henry Ford’s workers resigned or were terminated over the mandate. The system saw about a 99 percent compliance rate by October. “Most of our angst and most of our gnashing of teeth was not the decision or the announcement, but to make sure we give every member of our team the information to close gaps on the understanding perspective, not the fear perspective. Our goal was not to have any significant loss of team members.”
Impact in the community Lassiter is also largely responsible for September’s Mackinac Policy Conference returning during the pandemic. The Detroit Chamber’s annual conference went on hiatus in 2020 due to COVID-19 and its occurrence in 2021 was unsure. But with Lassiter as its chair last year, the conference was able to institute a vaccine mandate for attendees and Grand Hotel workers. Coupled with the presence of Lassiter and his management team, the event would go on in the middle of a pandemic with reassurance that no major breakout would occur. “We spent months in the planning process to create a structure that the public health status of the state al-
lowed us to do,” Lassiter said. “Henry Ford led through the pandemic in a lot of ways and we were clear that we would not hold a conference if we do not believe it was safe. We knew that if everyone showed up vaccinated, the risk was minimal. It’s not zero, but it’s relatively low. I don’t believe the credit falls on my shoulders. The Chamber did everything they could to create a safe environment and it was just lucky that I was the chair.” On Mackinac Island, Lassiter laid out how the health system’s threeyear-old affiliation with Michigan State University is likely to lead to construction of a new medical school in the city of Detroit. The two institutions want to increase the ranks of medical students in the city to raise the national prominence of both MSU and Henry Ford Health. The group is expected to begin announcements in the coming weeks and months about how that partnership is going to blossom. But before a new medical school is erected, Lassiter has to continue to navigate the labor shortages exacerbated by the pandemic as the omicron variant of the virus promises to wallop health systems further. “This has been a two-year war,” Lassiter said. “Normally in wars you have reserve platoons you bring in from the sidelines and retire others. We don’t have that ability. So we’re at a place where a lot of leaders feel their tank is empty. We’re looking for time off for our workers. That’s what we’re trying to do — 2021 has been harder for both leadership and staff. We were blind in 2020. We were just reacting. Now we’ve got lights and data and analytics but none of the tools that work the way we hoped. There are no more easy answers. No straws to draw to do to end this thing. This period of leadership is, yeah, painful. But we’re still moving forward.” — Dustin Walsh
Tina Freese Decker, President and CEO, Spectrum Health Tina Freese Decker became a household name in the Southeast Michigan business community in 2021. Prior to her promotion to president and CEO in 2018, Freese Decker helped streamline operations at Spectrum Health in Grands Rapids after several acquisitions as its COO and developed its outpatient strategy. For nearly two decades, Freese Decker has played an integral role in helping Spectrum quietly build a west side health care empire, becoming one of the strongest performing systems in the state. She now leads an $8.3 billion enterprise with 31,000 employees, 4,700 physicians and providers, 14 hospitals and an expanding integrated insurer in Priority Health. But Freese Decker aimed to push Spectrum to a statewide juggernaut. In June 2021, Spectrum announced its intent to merge with the state’s largest health system, Southfield-based Beaumont Health. The pairing would create a $12 billion health care company operating 22 hospitals and 305 outpatient centers as well as becoming the state’s largest employer over General Motors Co. with more than 64,000 employees. The new system, with a temporary le-
gal name of BHSH System, would have a dual headquarters in Grand Rapids and Southfield, and Freese Decker will serve as its top executive and chair. A large impetus of the deal is to expand Spectrum's integrated health insurer Priority Health from Michigan’s west side to Southeast Michigan’s larger populous and put it in the same field with Blue Cross Blue Shield of Michigan and Henry Ford Health’s Health Alliance Plan. The deal, which was originally expected to close in the fourth quarter of last year but was delayed by regulators, puts Tina Freese Decker on the same executive hierarchy as GM’s Mary Barra, Ford Motors Co.’s Jim Farley and Lear’s Ray Scott. Freese Decker, who is chair of the Michigan Health and Hospital Association Board and immediate past chair of the Economic Club of Grand Rapids, among other board roles, is likely to have greater visibility on the state’s east side and economic center. She’s known to make rounds at all of Spectrum’s hospitals to discuss operational bottlenecks with staff, making her popular with employees. Spectrum’s operational performance under her
leadership will be tested, however, as the merged company’s top executive. In 2010, Freese Decker served as Spectrum’s vice president of system strategic planning and development, the system failed to close a deal to land Traverse City-based Munson Healthcare, which after an affiliation discussion decided to forge an expanded system of its own. Munson now serves 30 northern Michigan counties with nine hospitals. This is also the third attempt from Beaumont since 2019, and the hospital has struggled to maintain top clinical talent as it cut its way to strong returns. The two prior deals were skewered by outside experts, employees and even former Beaumont board members. To temper fears, Freese Decker told Crain’s there were no immediate cuts or cost-cutting measures for the new company planned when the deal was announced. But turning Beaumont’s reputation around on the clinician side will become Freese Decker’s greatest challenge following the merger. Her place among metro Detroit’s business elite is unknown for now, but opportunity is abundant. —Dustin Walsh JANUARY 10, 2022 | CRAIN’S DETROIT BUSINESS | 13
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Dawn Ison, U.S. Attorney, Eastern District of Michigan Veteran federal prosecutor Dawn Ison made history in 2021 when she became the first Black woman to serve as U.S. attorney in Detroit. On Dec. 14, the U.S. Senate confirmed President Joe Biden’s nomination of Ison to the top law enforcement position in the Eastern District of Michigan. The Detroit native and Cass Tech graduate succeeded Acting U.S. Attorney Saima Mohsin. Ison said her appointment is the “pinnacle” of a 19-year career in the U.S. attorney’s office, where she has prosecuted a series of high-profile drug crimes and public corruption cases. Her high-profile cases have ranged from prosecution of the cocaine kingpins of Detroit’s Black Mafia Family to putting former Highland Park school board member Robert Davis in prison for stealing money from the impoverished school district. In 2021, Ison led the bribery prosecution of Taylor Mayor Rick Sollars, the Downriver city’s community development manager Jeffrey Baum and real estate developer Shady Awad, who pleaded guilty in October to bribing Sollars with cash, appliances and home improvement work in exchange for favorable treatment of his business. Baum pleaded guilty in November to pocketing bribe money from Awad for helping steer properties to Awad. Two years ago, Ison secured a 30-month prison sentence for former Troy city manager Brian Kischnick after Kischnick got caught shaking down city contractors for bribes. Ison also put the Operating Engineers Local 324’s former business manager, John Hamilton, in prison for two years for extortion, enriching himself and acting like an “old school union boss.” “It’s amazing that people are not deterred by some of our prosecutions,” Ison told Crain’s. “But we will not stop pursuing those who breach the public trust and do not provide honest services to these citizens — and we will hold them accountable each and every time in every single corner of this district where we find (corruption).”
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Prior to joining the U.S. attorney’s office in 2002, Ison spent 12 years in private practice as a criminal defense attorney. Ison started out in the general crimes unit of the U.S. attorney’s office, working alongside Barb McQuade. When McQuade became U.S. attorney in 2010, she appointed Ison as head of the drug crimes unit. “She’s handled a lot of very difficult cases where you have to manage a lot of personalities,” McQuade told Crain’s. “Dawn has shown a tremendous capacity to manage all of those demands and conduct herself with great integrity every step of the way.” In the year ahead, Ison said she plans to be a more visible public figure, focusing on repairing the public image of law enforcement. “We have to rebuild trust between law enforcement and the community,” said Ison, whose husband is a retired Southfield police officer. Ison also is mindful of the role she can play as the first Black woman in her post. “There are so many women who came before me who were qualified to serve in this role, but I’m honored and humbled by it,” she said. — Chad Livengood
Larry Bell, Founder, Bell's Brewery Inc. Larry Bell was cleaning out his office recently, preparing for a transition by the end of 2021 that would lead him away from the helm of the namesake brewery he started nearly 40 years ago. Bell, 63, announced his retirement and the sale of Kalamazoo County-based Bell’s Brewery Inc. in early November to an Australian brewing conglomerate, the culmination of a career that leaves him something of an icon in the craft brewing world, in Michigan and beyond. In the immediate days and few weeks that followed the announcement of the sale — for an undisclosed price — Bell said he mostly kept his head down and chose to avoid reading media coverage of the deal. While most fans of the brewery offered their congratulations, there were some naysayers, he told Crain's. "I think overall, the reaction to this sale — compared to some other sales that have taken place — the reaction to this was really positive," he said. "There's always a couple people who are like, 'well you sold out.' It's not a sellout. It's a sale. And for me, I get to retire
out of this and still have enough time and energy to do something else." Bell confirmed that "something else" will be outside of the beer industry, as he will have a noncompete deal in place. His focus once retired will be on getting a research library and gallery space set up to show off his slew of collected items, such as brewery collectibles, prints and much more. The company's pending sale to Lion Little World Beverages, which also owns Fort Collins, Colo.-based New Belgium Brewing Co., means that one of Michigan's legendary craft beer manufacturers will no longer be locally controlled. Bell, however, said the sale was a necessity for the good of the company and its employees. "There has to be some sort of succession plan," he said. "I think me having a bout with my old friend cancer last year brought that into focus. I'm fine. But what is the plan? The board discussed that (and) decided that probably the best thing for the employees and for the company was to see if we could find a buyer that we felt good about." — Nick Manes
“FOR ME, I GET TO RETIRE OUT OF THIS AND STILL HAVE ENOUGH TIME AND ENERGY TO DO SOMETHING ELSE.” — Larry Bell, Bell’s Brewery founder
Vinnie Johnson, Founder and Owner, Piston Group When the largest Black-owned automotive supplier in the country was stripped of its minority certified status, its CEO Vinnie Johnson, 65, once a feared point scorer for the Detroit Pistons, dug in on defense. Piston Group LLC, founded by the NBA champ in 1995, has been locked in a dispute since March with the Michigan Minority Supplier Development Council, which revoked the company’s minority business enterprise status, potentially jeopardizing hundreds of millions of dollars in contracts. The Southfield-based company, whose main business is supplying parts to Ford Motor Co. and Stellantis NV, sued successfully to have its certification reinstated. Following the court’s decision in June, the minority supplier council then countersued in October.
The ongoing legal spat has sparked debate over minority-owned certification standards and drawn close attention from automakers, which have prioritized doing business with diverse suppliers. Johnson, the sole owner of Piston Group, has said he is “actively engaged in all aspects of the business,” in which case, he has had his hands full this year. The ongoing supply chain crunch and microchip shortage has stunted new car production and had an outsize impact on parts suppliers. The microchip pinch is anticipated to linger through the first half of next year and cost the industry $210 billion, though the extent of the financial toll on the privately held supplier is not known. Piston Group is one of the fastest growing companies in Michigan, leap-
ing from revenue of $570 million in 2012 to $2.9 billion in 2020 and more than 10,000 employees across its four subsidiaries. Johnson has also been busy repositioning his portfolio. At the start of the year, subsidiary Irvin Products acquired Chicago-based bedding cover manufacturer A. Lava & Son Co., which has around 80 employees. In October, Johnson made the move to close subsidiary Airea Inc., a Southfield-based office furniture supplier with two dozen employees. “This decision is a result of an increased focus on our core competency in manufacturing and our level of commitment to increase business opportunities within the automotive industry and other market sectors,” Johnson said then in a statement. — Kurt Nagl
14 | CRAIN’S DETROIT BUSINESS | JANUARY 10, 2022
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Jennifer Gilbert, Founder, Amber Engine | Founder and Creative Director, Pophouse | Director, Rocket Companies | Co-founder, Gilbert Family Foundation Jennifer Gilbert has always been a quiet partner in philanthropy alongside her husband Dan Gilbert, founder and chairman of Detroit-based Rocket Companies Inc. (NYSE: RKT) — until 2021. The pair jointly founded the Gilbert Family Foundation, which attained nonprofit status in 2018 and had assets totaling $127.38 million at the end of 2020, according to a spokesman for the foundation. They also took the Giving Pledge together in 2012, promising to give away half of their wealth during their lifetime. Their philanthropy initially was largely focused on Jewish causes and Neurofibromatosis type 1, a disease that afflicts their son, Nick. But Jennifer Gilbert had remained largely behind the scenes, taking the lead in raising the couple’s five children and running two businesses of her own. That changed after her husband’s stroke and the pandemic. Both stepped away from the day-to-day demands of business to focus on his recovery. During the stay-at-home orders that accompanied COVID, the entire Gilbert family gathered at their home, where they had “very interesting and critical conversations” around the dinner table and beyond with
their children ages 15 to 27, Jennifer Gilbert said. “These conversations resulted in an increased sensitivity to and an awareness of the many issues of inequity that have always been there. And it created a sense of urgency and a sense of commitment and a personal responsibility to be a part of the solution,” she said. “It really was a family decision.” In March, the Gilberts announced a 10-year, $500 million commitment funded through the Gilbert Family
Foundation and Rocket Community Fund to create economic stability and jumpstart wealth creation for Detroit residents living in generational poverty. “We’re really focused on making holistic impacts to housing, education and systems...really getting to the root of the problem,” Jennifer Gilbert said. “It’s empowering people and organizations to do the good work that’s already going on, and amplify it.” “Listening sessions” with Detroit residents, organizations and stakeholders about needs led to an initial pledge of $15 million to pay off back taxes for about 20,000 Detroit residents, which will preserve an estimated $400 million in wealth and home equity. “It was a problem we had already begun working on. You know, it was an evolution of the Rocket Community Fund efforts in the property tax foreclosure space for years, which resulted in a 95 percent reduction in the number of homes entering property tax foreclosure,” she said. In April, Jennifer Gilbert, chair of the Cranbrook Academy of Art and Art Museum, took center stage herself to announce a $30 million gift to the academy, separate from the commit-
ment the month before, to help make the private graduate school more accessible to underrepresented racial and ethnic groups. Less than six months later, she and her husband committed $5.4 million to fund a clinical study to battle NF, bringing their total support for NF research to more than $70 million. Jennifer Gilbert said she and her husband plan in 2022 to announce “significant” investments in curing the disease. This past October, the pair made news again, for their undisclosed support for D’Wayne Edwards and his Portland-based Pensole Design Academy plan to open the Pensole Lewis College of Business and Design in Detroit in March 2022 as a joint venture with Detroit’s College for Creative Studies. Beyond the philanthropic headlines, Jennifer Gilbert also emerged in the fall as a board member of BasBlue, a new nonprofit gathering place in Detroit’s Midtown neighborhood for women and nonbinary individuals. “A dedicated space to bringing women of all backgrounds, experiences and industries in a safe and inclusive place is long overdue,” she said. — Sherri Welch
“IT’S EMPOWERING PEOPLE AND ORGANIZATIONS TO DO THE GOOD WORK THAT’S ALREADY GOING ON, AND AMPLIFY IT.” — Jennifer Gilbert, Gilbert Family Foundation co-founder
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Bud Denker, Chair, Chevrolet Detroit Grand Prix presented by Lear Bud Denker has a pretty distinct vision of what the Grand Prix will look and feel like when it returns to the streets of downtown Detroit in 2023. “This gives us a chance to amplify and showcase the city’s downtown,” said Denker, chair of the Chevrolet Detroit Grand Prix presented by Lear. “Imagine the shots of the cars racing down (Atwater Street). Imagine the sounds of the cars racing down Jefferson at (180 mph).” Detroit City Council in November unanimously approved the race’s return to downtown following a 13-year run on Belle Isle. A three-year deal allows the race to run in Detroit from 2023 to 2025, with an option for two additional years. Denker, president of Bloomfield Hillsbased Penske Corp., has been at the center of the move, which he says provides a means to keep the race going. The Grand Prix got its start downtown in 1982 and ran there until 1991. Denker, 61, told Crain’s that a number of variables played into the move. “Belle Isle presents some barriers to getting people to the race. You can only bring so many people on. It’s not as inclusive as we’d like because of those limitations,” he said. “Of course, there were issues with it being a state park, and people not being able to use the park while the race is set up. “I went to a race in Nashville in early August — the first they ever had in their downtown. I saw what it did for the city’s vitality and vibrancy, and I said ‘We’ve got to do this in Detroit.’ We need to have (the race) in a place that doesn’t restrict commerce or business.” The plan calls for a downtown track on Jefferson and Atwater, with a hairpin turn near Huntington Place (formerly TCF Center), that would not close any businesses or public spaces. Some 50 percent of the cir-
cuit will be open to the public for free. The move could provide a boon for downtown businesses. Research has shown there are more than 160 businesses within 15 minutes of the Renaissance Center, according to Denker. The threeday event could bring in $70 million, according to a University of Michigan study. “There’s been unanimous support to get the event downtown. ...,” Denker said. “I talked to 1,000 people from August until the November (City Council) vote and there was no resistance. There’s always some resistance.” Denker, a member of the Belle Isle Park Advisory Committee, said that in its time
on Belle Isle, the Grand Prix has committed $13 million to infrastructure improvements, including paving roadways and improvements to the Scott Memorial Fountain. The final Grand Prix on Belle Isle is set for June 3-5. Denker is excited for the event to return to its roots. He’s also clear that it is about more than the cars. “I don’t want this to be a race. I want it to be an event,” he said. “I want the people to want to attend concerts, see art, and the downtown design. We want this to be a great event for our downtown and the region.” —Jay Davis
Tim Conder, Vice President of Acquisitions, NorthPoint Development LLC In the last two years, a former General Motors Co. real estate executive has emerged as the local face of one of the most active industrial and warehouse/ distribution center developers in the region. NorthPoint Development LLC, based in Riverside, Mo., has entered the market, putting some 7 million square feet in the ground or in the works in and around Detroit. Tim Conder, vice president of acquisitions for the company, joined the fledgling NorthPoint team in 2019 after nearly two decades working in the bustling real estate department at the Detroit-based automaker. It was a natural transition for Conder, a Miami University graduate who has spent nearly four decades in real estate in Dallas, Atlanta and Detroit with several firms. Four or five years prior to joining NorthPoint when he was at GM, he worked with the firm on a development of a RACER Trust site in Kansas City. “NorthPoint was starting to grow but they really hadn’t hit their stride yet,” he said of his initial dealings with the company. “They were looking at various markets to try and penetrate and they really liked the Detroit market, but they were just never able to really get a good deal in Detroit.”
Fast forward just a few short years: In the last 12 months or so alone, there have been a half-dozen major deals on which the company has made serious strides. That includes the redevelopment of the former Cadillac Stamping Plant site at Gratiot and Conner in Detroit; the former American Motors Corp. property on Plymouth Road, also in Detroit; the former Warren Transmission Plant property on Mound Road; the Eastland Center shopping mall property in Harper Woods; a three-building Shelby Township warehouse or industrial development; and a two-building industrial development in
Romulus called Ecorse Commons. Those six projects alone total more than 5.5 million square feet of new construction, and NorthPoint has other irons constantly in the fire elsewhere, looking for development prospects in cities such as Livonia and other areas around metro Detroit. For example, Conder said his company had been close on a deal to develop the former Packard Plant site on Detroit’s east side but it fell apart at the last minute. And even though that one has not borne fruit, visible changes will be noticeable at a pair of sites soon, with demolition expected to start in February on Eastland Center as well as the Warren Transmission Plant. The deal volume is heavy enough that NorthPoint is opening a small office in downtown Detroit at 2111 Woodward Ave. in the coming months and staffing it, for the time being, with employees from Kansas City and Cincinnati, Conder said. That, he said, will help him make inroads in markets he has been a bit too busy to focus on of late, including Grand Rapids and Cleveland. “Now that I got guys that are moving up here ... it gives me a little more freedom to get out and do those things,” Conder said. —Kirk Pinho
Jim Farley, President and CEO, Ford Motor Co. Jim Farley, 59, sent shock waves through Michigan when it was announced that Ford Motor Co. would be venturing away from home to invest $11 billion in EV plants and create thousands of jobs in Kentucky and Tennessee. The move was a wakeup call for economic development officials in Michigan and called into question the future of the state’s economy on the cusp of a historic transformation in its largest industry. Farley, CEO of Ford since October 2020, called it his proudest accomplishment in his first full year at the helm. “…I’m most proud of the steps we’ve taken to build a new, sustainable auto manufacturing ecosystem with our investments in Blue Oval City in Tennessee and the BlueOvalSK Battery Parks in Kentucky,” he said in an emailed response to questions. In the last year, Farley has helped turn around Ford’s stock price, hit the gas on electrification plans and vowed to give EV darling Tesla Inc. a run for its money. “Our goal is to be the clear number two EV producer here in the U.S. and then make our run at number one as our new facilities get up and running,” Farley said. “We’re going to keep delivering EVs our customers can’t wait to drive and working to make them accessible and affordable to a wide range of people.” As Ford electrifies some of its most iconic vehicles, including the F-150 Lightning, Mustang Mach-E and E-Transit, Farley’s big challenge in 2022 will be ramping up production to meet demand. The company said in the next two years, it aims to scale up to 600,000 EVs manufactured per year. While Ford’s EV base is being built down south, the automaker is also making progress on a $740 million redevelopment of the Michigan Central Station campus in Detroit's Corktown neighborhood. Farley has pointed to that project and the company’s $7 billion in Michigan investments since 2016 as proof of its commitment to the state. As for future development plans, Farley said the company’s “love of Michigan” influences its decision making and that he and Gov. Gretchen Whitmer have “ongoing direct communication” as it relates to future investments. “We work closely with state and local partners here in Michigan and we’ve had a productive dialogue with them around what we’ll be looking for as we plan future investments,” Farley said. “Our team has ongoing discussions with the Governor’s Office, the MEDC and the Legislature on what Michigan can do to improve the competitive landscape..." — Kurt Nagl JANUARY 10, 2022 | CRAIN’S DETROIT BUSINESS | 17
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PEOPLE ON THE MOVE
Advertising Section To place your listing, visit crainsdetroit.com/people-on-the-move or, for more information, contact Debora Stein at 917.226.5470 / dstein@crain.com
ACCOUNTING
ACCOUNTING
HEALTHCARE / PROVIDER
MANUFACTURING
NONPROFIT
Doeren Mayhew
Moore Doeren Mayhew
Health Alliance Plan (HAP)
Cadillac Coffee Company
First Tee - Greater Detroit
Doeren Mayhew is pleased to announce the election of Joseph Basilico, CPA as a Shareholder in the firm’s Transaction Advisory Services Group. With more than 13 years of experience, he specializes in providing financial due diligence analysis, transaction structuring, deal negotiation support and post-transaction planning assistance. Basilico has successfully represented a variety of middle-market businesses through the merger and acquisition process.
Doeren Mayhew is pleased to announce the election of Linda Pelczarski, CPA as a Shareholder in its international practice, Moore Doeren Mayhew. She has over 20 years of tax and accounting experience serving a diverse sector of businesses domestically and abroad. She focuses on assisting foreignowned businesses operating in the U.S., as well as U.S. companies with outbound activities. Pelczarski provides U.S. tax planning and compliance, multi-state nexus guidance and customized accounting solutions.
HAP has named Marc Ahlquist vice president of human resources, responsible for developing, implementing and overseeing all human resources strategies and practices for HAP’s 1,100-member workforce. Ahlquist has nearly 30 years of HR experience and previously served as director of human resources at Credit Acceptance Corp., an auto loan finance company.
Cadillac Coffee Co., a 133-year roaster of fine coffees, has named Chris Sherbahn its new Controller. Chris comes to Cadillac with over 37 years in public and private accounting. Operating in 6 midwestern states, Cadillac’s core includes Foodservice, National Hotel brands, Convenience Stores, Offices, and Private Label packaging. Cadillac has recently partnered with Summits Edge Coffee Roasters to offer a line of small-batch roasted coffees. Please visit cadillaccoffee.com for more information.
First Tee-Greater Detroit, an initiative of The Children’s Foundation, welcomes Danielle Russell, Managing Director for Google’s Marketing Platforms and Site Lead for the Google Detroit office, to its Board of Directors. Russell oversees the strategic direction and growth of Fortune 500 companies in digital transformation and consults clients in durability, readiness, analytics, strategies, and solutions. She was recognized as one of the top 16 Technology Executives in Michigan in 2020 and 2021.
HEALTHCARE / PROVIDER
Health Alliance Plan (HAP)
ACCOUNTING EDUCATION
Doeren Mayhew
Western Governors University
Doeren Mayhew is pleased to announce the election of Perry McBride, CPA as a Shareholder in the firm’s audit practice. With 12 years’ experience and strong technical proficiency, Perry plays an integral role in the firm’s quality control process to ensure clients receive sound accounting advice and highquality risk assurance services. His background is in financial reporting and advisory services, primarily focused on the financial institutions, distribution, manufacturing and construction sectors.
Western Governors University (WGU) has announced Michael Crawford as the online university’s newest Strategic Partnerships Manager in Michigan. Crawford brings more than 10 years of academic, research and strategy development experience to his new role, where his primary focus is to expand the impact and vision of WGU for learners, workers and organizations in Michigan by sustaining and developing new networks of academic and employer relationships.
HAP has named Nike Otuyelu, Chief Compliance Officer responsible for ensuring the organization complies with state and federal laws, regulatory requirements, policies and procedures as HAP continues to serve new markets across Michigan. Otuyelu previously served as an independent compliance consultant at Avota, a Houston, Texas based health care consulting firm.
REAL ESTATE
Colliers International NONPROFIT
A Kid Again Michigan Nonprofit A Kid Again is excited to announce Amy Vining as Executive Director of the Michigan Chapter. In this role, Amy will oversee the growth of A Kid Again throughout Michigan as the organization continues its mission of bringing hope, happiness, and healing to kids, with life-threatening conditions, and their families. Amy previously served as Executive Director for the East Central Bay Chapter of the American Red Cross. Founded in 1995 in Ohio, A Kid Again expanded into Michigan in 2021.
Colliers International welcomes Barbara Eaton as an Executive Vice President. Barbara has been representing Landlords and Tenants for over 30 years and has completed close to $1 billion of transactions globally. Barbara has been involved in several committees, received numerous Top Real Estate Awards from CoStar, and was recognized in Crain’s Notable Women in Real Estate and Top 50 People to Know in Real Estate. She was also admitted to Midwest Real Estate News’ Hall of Fame. REAL ESTATE
Village Green
GOVERNMENT / NGO
Doeren Mayhew is pleased to announce the election of Nicole Preston, CPA, MST as a Shareholder in its Tax Group. For 10 years, she has provided tax compliance and planning services to closely held businesses and their key stakeholders. Preston has significant experience dealing with domestic and state and local tax issues applicable to corporations, partnerships and individuals. Primarily she works in the manufacturing, construction, wholesale distribution, professional services and retail industries.
18 | CRAIN’S DETROIT BUSINESS | JANUARY 10, 2022
Oakland Community Health Network Oakland Community Health Network (OCHN) is pleased to announce Richard Oldacre has joined the organization as its new Chief Operating Officer (COO). Oldacre has 25 years of executive healthcare experience. As part of the leadership team, he is responsible for the oversight, direction, and coordination of OCHN’s Operations Division. This includes managing service and program operations, as well as developing and implementing the organization’s Strategic Plan, Annual Plan, and Budget.
NONPROFIT INSURANCE
Community Housing Network Hylant Hylant, a privately held insurance brokerage firm, welcomes Patrick Armour, Risk Advisor Property Loss Control. Patrick has a strong background in risk engineering and assisting clients with complex loss control measures. Patrick will advocate for clients and create programs and opportunities that have a positive impact on their business. The addition of Patrick to Hylant’s Property Loss Control team aligns with Hylant’s mission to provide innovative and expanded solutions to clients.
Kirsten Elliott believes that affordable housing is an essential part of a holistic approach to a fresh start, opening doors and transforming lives. Kirsten has spent her career developing affordable housing communities and creating housing resources for vulnerable populations. As Vice President and Chief Operating Officer, Kirsten collaborates with CHN’s President, Board of Directors, and community partners to set and drive the organization’s vision and organizational strategy.
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With 20 years of experience in the multifamily industry and a decade focused on the affordable housing sector, Selena Vives has joined Village Green as its vice president of affordable housing and compliance. In this role, Vives is overseeing the expansion and diversification of Village Green’s affordable housing options to provide better housing opportunities Preserve your career across the 90 cities inchange which for years to come. Village Green operates.
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` CONTRACTS ` O2 Investment Partners, Bloomfield Hills, a private equity firm, partnered with Capital Construction LLC, Burnville, Minn., provider of roof replacement and other exterior restoration services, to support the company’s growth. Terms of the investment were not disclosed. Websites: o2investment.com, capitalmn.com ` Electric Last Mile Solutions Inc., Troy, provider of electric and intelligent mobility solutions for commercial vehicle customers, and EVgo Inc., Los Angeles, Calif., a electric vehicle fast charging network for EVs, have a partnership to build charging solutions with zero-emissions for commercial EVs. Websites: electriclastmile.com, evgo.com ` PSI Repair Services Inc., Livonia, a subsidiary of Phillips Service Industries, and an industrial equipment repair service, has a service partnership with Dinghan SMART Railway Technology GmbH, Kassel, Germany. an electronics manufacturer. PSI Repair Services will perform parts repairs and engineering services for U.S. rail operators who use Dinghan SMART Railway Technology products. Websites: psi-repair.com, dinghan-germany.com ` Brownyard MacLean Security Insurance Services LLC, Bloomfield Hills, dba BMSIS Specialty Insurance Services, a managing general underwriter and program administrator focused on the private security insurance market, has announced a strategic collaboration with Markel, Richmond Va., a financial holding company, to provide insurance products and service to the private security industry. Website: brownyardmaclean.com
` MERGERS & ACQUISITIONS ` DexKo Global Inc., Novi, manufacturer of trailer running gear, chassis assemblies and related components, acquired Brink International BV, Staphorst, Netherlands, a towbar solutions specialist. Websites: dexko. com, brinkgroup.eu ` Lineage Logistics LLC, Novi, a temperature-controlled industrial REIT and logistics solutions provider, acquired Kloosterboer Group BV, Amsterdam, Netherlands, a cold storage company. It also has closed on the acquisition of the cold storage division of Claus Sørensen Group, Esbjerg, Denmark, a cold storage operator. Website: lineagelogistics.com ` ChenMed, Miami, Fla., provider of primary care to Medicare-eligible seniors and parent company of Dedicated Senior Medical Center, acquired Professional Medical Center, Detroit, and the office of James Zelch, M.D., two internal medicine practices. The acquisitions will add patients to Dedicated Senior Medical Center locations in East Detroit, North Detroit, Southfield and Warren. Website: ChenMed.com ` Pace Industries LLC, Novi, a custom die casting manufacturer, acquired Jackson Die Cast, Jackson, Tenn., an aluminum high-pressure die casting facility, from Metal Technologies of Indiana LLC. Website: paceind.com. ` Pantero Inc. Troy, a packaging company, acquired Ampro Inc., Howell, a material handling equipment supplier. Website: pantero.com
To place your listing, contact Suzanne Janik at 313-446-0455 or sjanik@crain.com
JOB FRONT POSITION AVAILABLE
ALMA COLLEGE Senior Vice President / Chief Operating Officer
Alma College seeks an accomplished and strategic leader to serve as Senior Vice President/ Chief Operating Officer (COO). Our new COO will be an essential partner to the president and a strong operational leader for the college who will engage the campus as we work to achieve our ambitious strategic plan. A key member of the senior administrative team, the COO reports to the president and works collaboratively with other vice presidents to execute campus plans. The COO will be charged with working across all campus sectors to allocate resources and manage day-to-day operations and therefore, must be adept at engaging all campus constituencies on a wide variety of complex issues. The COO must demonstrate the ability to develop innovative responses to the challenges for residential colleges today, while keeping focus on the liberal arts core of the college. A chief partner to the president, the COO will oversee major revenue sectors of the college to ensure that we meet growth goals in the years ahead. The COO is the cabinet officer responsible for ensuring the success of Alma’s growth strategy, working closely with the vice president of enrollment and the vice president of student affairs on recruitment and retention. The COO oversees enrollment, student affairs, finance, and administration sectors. The COO works with the Chief Financial Officer in overseeing the college’s annual operating budget of $45M. The COO will demonstrate the ability to communicate complex financial data in a clear, understandable manner to campus constituencies. The ideal candidate will have a broad portfolio of leadership accomplishments with an entrepreneurial spirit, demonstrated financial and management success, and an understanding of and commitment to liberal arts education. A Phi Beta Kappa institution. Alma is a selective, residential private liberal arts college of 1400 students. It is dedicated to providing an academically challenging undergraduate education in a supportive environment emphasizing active, collaborative learning and close student-faculty interaction. The college is located in the city of Alma, Michigan, less than an hour north of Lansing and two hours from the state's largest city of Detroit. A complete application will include a resume, cover letter and the names and contact information of at least 3 professional references submitted electronically to careers@alma.edu. Review of applications will begin immediately and continue until the position is filled. Confidential inquiries may be addressed to Jeff Abernathy, President, by e-mail to: careers@alma.edu.
Alma College is an equal opportunity employer committed to recruiting and retaining a diverse faculty, staff and student body. Alma College recognizes that we are all transformed when we celebrate and value the varied identities backgrounds, experiences, and perspectives in our campus community. We are committed to recognizing and removing barriers to success and providing equitable access to opportunities through education and advocacy. In our increasingly diverse campus and world, we pledge to create a climate where everyone is safe and free to grow intellectually, spiritually, and emotionally.
POSITION AVAILABLE Vice President, People and Windsor Regional Hospital: Windsor Regional Hospital (WRH) is the 15th largest hospital in the Province of Ontario and the 7th largest community teaching hospital, serving a population of about 400,000 people in Windsor and Essex County, along with providing tertiary and quaternary care to thousands more. The hospital is responsible for all acute care services in Windsor, and currently operates out of two campuses - the Met Campus and the Ouellette Campus. The hospital has about 4,191 staff members, 538 professional staff, and 890 volunteers. Through Windsor Regional Hospital’s affiliation with the Schulich School of Medicine and Dentistry-Windsor Campus, there are also a number of medical school students and resident physicians working at the two campuses. Reporting to the President & Chief Executive Officer, the Vice President, People and Culture (VP P&C), will advance the People strategies of the organization to enhance the organizational culture and achieve the strategic directions and objectives of WRH. They will provide the vision, strategy and operational oversight necessary to foster a common desired culture for the organization and support the organization’s leaders in empowering staff to provide optimum standards of service to the patients and community served by WRH. The VP P&C will be a strategic leader who is accountable for ensuring that their teams have the tools to evolve services which effectively contribute to the achievement of WRH’s strategic initiatives and objectives. Operationally, the VP P&C is accountable for continuing to work collaboratively with hospitals and WRH partners to further build and create opportunities for a highly evolved and effective integrated health system. The VP P&C will oversee a portfolio that includes: Human Resources, Labour Relations, Health and Safety, Education & Organizational Development, Risk Management and Patient Advocacy. Key to this role will be the development and execution of a People Strategy that incorporates each of these areas. The successful candidate will be a seasoned, innovative leader, with at least 10 years of progressive senior level experience in human resources and organizational development leadership within a complex, unionized organization. They will have demonstrated change and transformation leadership within an integrated service delivery environment. In addition to an impressive professional career, this new leader will possess an Undergraduate degree, coupled with a Graduate degree in a human resources or business discipline. To learn more about this dynamic leadership opportunity, please submit your resume to https://www.miramsbecker.com/vp-people-and-culture-windsor-regional-hospital/. Alternatively, contact Sarah Adams at 416-456-9245 for a discussion.
POSITION AVAILABLE
POSITION AVAILABLE
SUBMIT YOUR AD TODAY
Autodesk’s Novi, MI office has multiple openings for SOFTWARE ENGINEERS (various types/levels): Analyze, design, develop, program, debug & modify computer applications software or specialized utility programs. TO APPLY: Go to www.jobpostingtoday.com, search for job code 66209 & submit resume.
MARKET PLACE REQUEST FOR PROPOSALS Requests for Proposals are being accepted for:
Skills for Life Adult Education Services (AES) Response Due: February 3, 2022
Issued: December 17, 2021
The Mayor’s Workforce Development Board (MWDB) is directly responsible and accountable to the State of Michigan, Labor and Economic Opportunity-Workforce Development (LEO-WD) for the planning and oversight of talent development programs in the City of Detroit. Designated by the MWDB, Detroit Employment Solutions Corporation (DESC) serves as the fiscal and administrative entity that provides workforce services to job seekers and employers. DESC’s primary funding streams include Workforce Innovation and Opportunity Act (WIOA), Temporary Assistance to Needy Families (TANF) that funds Michigan’s PATH (Partnership. Accountability. Training. Hope.) employment program, Food Assistance Employment and Training (FAE&T), Wagner-Peyser Employment Services (ES), and other public and private funding. The Corporation enters into contracts with qualified entities to provide workforce development programs and services to job seekers and employers. American Rescue Plan Act (ARPA) and Center for Disease Control Foundation (CDC) funding may support contracts resulting from competitive bid process. DESC is seeking proposals from qualified individuals, organizations and/or firms.
Bid package for this RFP is available for download at this DESC website:
https://www.descmiworks.com/opportunities/rfps-and-rfqs/. Mayor’s Workforce Development Board Cynthia J. Pasky, Co-Chairperson David E. Meador, Co-Chairperson
Windsor Regional Hospital and Mirams Becker are committed to employment equity and diversity in the workplace; we welcome applications from women, racially visible individuals, people with disabilities, Indigenous peoples, and LGBTQ2S+ persons. We are committed to providing persons with disabilities with equal opportunities and standards of goods and services, and we are fully compliant with applicable provincial Disabilities Acts.
Detroit Employment Solutions Corporation Board Calvin Sharp, Chairperson Detroit Employment Solutions Corporation Terri Weems, President
An equal opportunity employer/program. Supported by the State of Michigan, Labor and Economic Development, Workforce Development (LEO/WD). Auxiliary aids and services available upon request to individuals with disabilities. 1-800-285-WORK. TTY: 711.
REQUEST FOR PROPOSALS Requests for Proposals are being accepted for:
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CONNECT. COLLABORATE. CELEBRATE.
Community Health Corps-Commercial Office Space Targeted Area (CHC-COSTA) Issued: January 4, 2022
Response Due: January 21, 2022
The Mayor’s Workforce Development Board (MWDB) is directly responsible and accountable to the State of Michigan, Labor and Economic Opportunity-Workforce Development (LEO-WD) for the planning and oversight of talent development programs in the City of Detroit. Designated by the MWDB, Detroit Employment Solutions Corporation (DESC) serves as the fiscal and administrative entity that provides workforce services to job seekers and employers. DESC’s primary funding streams include Workforce Innovation and Opportunity Act (WIOA), Temporary Assistance to Needy Families (TANF) that funds Michigan’s PATH (Partnership. Accountability. Training. Hope.) employment program, Food Assistance Employment and Training (FAE&T), Wagner-Peyser Employment Services (ES), and other public and private funding. The Corporation enters into contracts with qualified entities to provide workforce development programs and services to job seekers and employers. American Rescue Plan Act (ARPA) and Center for Disease Control Foundation (CDC) funding may support contracts resulting from competitive bid process. DESC is seeking proposals from qualified individuals, organizations and/or firms.
Bid package for this RFP is available for download at this DESC website:
https://www.descmiworks.com/opportunities/rfps-and-rfqs/.
Visit crainsdetroit.com/crains-events to register and explore this year’s dynamic, information-packed programming!
Mayor’s Workforce Development Board Cynthia J. Pasky, Co-Chairperson David E. Meador, Co-Chairperson
Detroit Employment Solutions Corporation Board Calvin Sharp, Chairperson Detroit Employment Solutions Corporation Terri Weems, President
An equal opportunity employer/program. Supported by the State of Michigan, Labor and Economic Development, Workforce Development (LEO/WD). Auxiliary aids and services available upon request to individuals with disabilities. 1-800-285-WORK. TTY: 711.
JANUARY MAY 10, 24, 2022 2021 || CRAIN’S CRAIN’S DETROIT DETROIT BUSINESS BUSINESS || 19 19
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NIC ANTAYA FOR CRAIN’S DETROIT BUSINESS
Cindy Daniels of Northville loads a coil of steel into a press at AlphaUSA in Livonia last fall.
SUPPLY
From Page 3
Most contracts between automakers and suppliers are for the production life of a part, which can range from a few years to 10 years or more. Many deals were signed well before the COVID-19 pandemic began and the ensuing supply crisis. The general rule has been to supply the customer at all cost — unless the cost is financial ruin. “You’ve got these insanely exorbitant increases on one end of the supply chain. On the other end of the supply chain, you have the automakers charging higher prices. In the middle you have all the suppliers,” said Dan Sharkey, co-founder and member at Brooks Wilkins Sharkey & Turco PLLC who specializes in supply chain litigation. Unexpected production suspensions, from Ford Motor Co.’s F-150 and Explorer to the Stellantis Jeep Cherokee, have taken big bites out of suppliers’ revenue. Capacity utilization for light duty automobiles in North America has fallen steadily and then stagnated since the second half of 2020 when plants were brought back on line after COVID-19 shutdowns. Capacity utilization was just above 60 percent in the third quarter of this year, compared with nearly 80 percent at the same period last year, according to data from the Federal Reserve Bank of St. Louis. “The smaller companies tend to be more nimble and more aggressive because they have less to lose, right — the ma and pas saying, ‘Hey, I just lost money last month, and if I don’t get a price increase next month, I’m not shipping parts,’” Sharkey said. That resembles the language of dozens of letters sent recently to Livonia-based AlphaUSA, which supplies fastener assemblies and stampings to major automakers and has been outspoken about the unprecedented rise of steel prices. Nearly all of AlphaUSA’s suppliers have given the company an ultimatum: Pay more or stop receiving material, said David Lawrence, executive vice president and chief administrative officer for the company.
Sharkey
Lawrence
Lee
AlphaUSA’s only choice is to pay the increase, Lawrence said. “That’s their method of survival,” he said of smaller suppliers. “They are going to have to demand prices to cover their cost. There’s no other way for them to survive.” In turn, AlphaUSA is looking to pass those costs up the supply chain to mitigate its losses. “Tough luck” was the response from customers initially, but the tone has begun to change. “Our customers have reluctantly started to talk to us,” Lawrence said. “At this point, we have no customers standing their ground, but we have no customers that have come up with a solution yet.”
industry, including major customer Denso Corp. Just before Thanksgiving, Stewart Industries sent an email to clients informing them that the business would be closing and parts would stop shipping. “Today, we are not ashamed to be deeply emotional as we write to inform you that Stewart Industries LLC, being burdened with a historic financial crisis, is discontinuing our business,” said the letter obtained by Crain’s, signed by CEO Joseph Stewart and President Erick Stewart. The company could not be reached for comment. Denso, through a spokesman, declined to comment. There will likely be more suppliers that will succumb to financial troubles, as industry analysts predict the gummed-up supply chain and microchip famine will persist at least into the first half of next year. Losing a supplier unexpectedly is a headache for purchasing departments in normal times — amid a supply crisis, it could be a major blow. “There are lessons to be learned from the ’08-’09 situation and the decimation of the supply base that resulted because of that, and I think OEMs are looking at this particular situation differently as a result,” Walters said.
contracts, raw material price indexes and the general sharing of volatility associated with production costs. Typically, the only shakeup would come from automakers putting pressure on suppliers to cut costs. “It’s been amazing,” Sharkey said. “Some have taken a surprisingly generous view and they’ve been actually giving price increases. Now, there’s no Santa Claus or Easter Bunny, but I’ve actually been surprised that some of the OEs are actually giving price increases because right now everyone’s having trouble getting supply, so they want to be the supplier’s favorite customer.” The lack of supply chain-related lawsuits also indicates a desire by companies to resolve disputes before litigation. Earlier this year, Stellantis NV supplier JVIS-USA made headlines when it sued NXP Semiconductors, alleging that the chip maker’s failure to ship semiconductors would cause a shutdown of the Jeep plant in Detroit. The gush of similar lawsuits predicted by some has not happened. Some OEMs are more willing to renegotiate than others, just as some suppliers have different breaking points before asking customers for concessions. Sharkey and Walters declined to name clients. Stellantis and General Motors Co. declined to make anyone available to interview for this story. Ford did not respond to requests for comment. Automakers keep purchasing strategies close to the vest, but whether and how they decide to help their suppliers absorb costs has an impact on their bottom lines, about which they must answer to investors.
New territory The supply chain friction has kept Sharkey and Walters and others like them plenty busy. As it happens, the business of supply chain litigation has never been better. In Sharkey’s nearly three decades of work in the field, he said he has never handled so many commercial disputes at once, not even in the 2008-09 financial crisis. Walters, who’s been in the business for around the same length of time, said he doesn’t see the situation improving anytime soon. “I would say that this is definitely new territory,” Walters said. “It’s certainly fair to say that many suppliers have been financially stressed and may not last through this pandemic and global supply chain catastrophe.” One of them is Battle Creek-based Stewart Industries LLC, a 20-year-old, minority-owned company that supplies assemblies to the automotive
20 | CRAIN’S DETROIT BUSINESS | JANUARY 10, 2022
All in this together Both Walters and Sharkey said they have also never seen automakers so willing to come to the table on deal restructuring that does not favor them. Talks have included potential concessions previously unheard of, including retroactive price increases, acceleration of payment terms, longer-term
“Obviously, I’m not going to go into any detail on any conversations that we’re having across our supply base, but what I would say is the singular focus is making sure that we have consistency and reduce some of the volatility that we’ve seen in the supply chain, whether it’s due to logistics or semiconductors, etc.,” GM CFO Paul Jacobson said during an October call with investors. During a call with investors last month, Toyota executives briefly discussed the topic of price negotiations with suppliers and emphasized the need to accommodate both sides. “With regard to relations with suppliers, well, we would like to coexist with our suppliers so that we can reduce cost and enhance the competitiveness together,” Kenta Kon, operating officer at Toyota, said during the call. “We would like to enhance competitiveness of suppliers, and we would like to reap the achievements fairly, together.” Several big suppliers have echoed the all-in-this-together sentiment. Robert Lee, president of Automotive Technologies Continental North America, told Crain’s in a recent interview that the company is having “constructive dialogue” with customers regarding new supply deals. “It’s not a situation where there’s no appetite to entertain any of this type of discussion. It’s not like that at all,” Lee said. “We’re having those discussions, and I would say that we as an industry have to recognize that everyone needs to have value creation and make sure that there is a fair distribution of the value that’s coming out of the industry.” Being able to pass price increases up the supply chain is a win for suppliers. Not so much for the consumer, who the industry is ultimately counting on to absorb the final cost. “The most likely scenario is automakers at least sharing in these costs, and then there’s going to be a need (for costs) to be passed on somewhere else,” Lawrence said. “Most likely, I think it means significant increases to vehicles’ sticker prices.” Contact: knagl@crain.com; (313) 446-0337; @kurt_nagl
BOSCH
From Page 1
significant and growing segment of Bosch’s mobility division. “What’s interesting is the parallels to the passenger car mobility segment,” said Tim Frasier, regional president of the company’s Cross-Domain Computing Solutions, North America. “The strength of Bosch is our design and technical competence, but the important part is we take what we have within one domain, specifically in automotive, and we’ve used that to support other means of mobility.” As with cars, the next frontier for e-bikes is connectivity. That theme was on full display this week during the CES technology show in Las Vegas. While Detroit-based General Motors Co. unveiled the anticipated Chevy Silverado EV and other automakers touted their latest EV technology, Bosch went for a bike ride. The supplier, typically associated with car parts and power tools, used the stage to Fraser take its new eBike Smart System for a spin. Bosch’s e-bike system consists of an electric drive unit, battery and display installed on bicycles of all different types and brands. Trek is its largest customer, and cargo and delivery bikes are its fastest growing category. The concept of e-bikes has evolved from slapping a bulky motor onto a bike frame into sleek, modular designs for commercial and recreational use. E-bikes, along with electric scooters, have become an increasingly popular form of mobility that has sprouted countless startups and inspired serious R&D investment by major automakers from GM to Volkswagen. “It was not a sexy product, it was not integrated (and) it looked horrible,”
OMICRON
From Page 1
federal government are tapped out. The willing in the state’s 14,419 deep volunteer registry are being used and the 125 Michigan National Guard health care personnel are already deployed. “There are no more health care providers,” said Elizabeth Hertel, director of the Michigan Department of Health and Human Services. “We are trying to help all of the facilities as much as possible, but we really don’t have anybody left.” Nearly 6 percent of Trinity Health Michigan’s 24,000 employees were quarantined away from work Thursday. The 1,374 quarantined employees, who are either confirmed to have COVID-19 or are suspected to have contracted the coronavirus, represent a sharp rise to the system’s pre-omicron record of 599 quarantined employees, or 2.5 percent of staff, in November 2020 — before vaccines were widely available. Henry Ford Health System had 721 employees test positive for COVID-19 between Dec. 31 and Jan.6. Sparrow Healthcare has 199 employees in quarantine. Beaumont Health had more than 430 in quarantine on Thursday. Beaumont Health administrators said Thursday that the eight hospital system is at a “breaking point” due to the sharp rise of omicron coronavirus variant infections among patients and
Claudia Wasko (left), general manager for Bosch eBike Systems, Americas, and Mike Mansuetti, president of Bosch North America, show off the company’s latest eBike Smart System on Jan. 4 during the CES technology show in Las Vegas. | ROGER TAM PHOTOGRAPHY
Claudia Wasko, general manager for Bosch eBike Systems, Americas, said of the earliest e-bike iterations. “What happened over time ... the drive unit became much smaller, the battery became integrated, you cannot see it any longer. Every kind of category got electrified. “Everybody’s riding e-bikes. It’s cool.” The global market size for e-bikes hit nearly $17 billion in 2020 and is expected to grow to $52 billion by 2028, according to market research firm Fortune Business Insights. While Europe remains the largest market for e-bikes, sales have surged in the U.S. to more than half a million units in 2020. Wasko said Bosch is among the global market leaders of proprietary e-bike systems, with more than 100 customers globally, including Trek, Cannondale and Scott Sports. She said Bosch has more than 20 percent mar-
ket share in North America and is the dominant e-bike company in the core markets of Switzerland and Germany, where Bosch keeps its global headquarters. The company declined to disclose revenue, percentages or number of employees for its eBike Systems unit, which is part of its metro Detroit-based Mobility Solutions business. Research and development of eBikes is done primarily in Germany, with administrative and sales work in California. Unlike a decade ago, Bosch has lots of company as the e-bike space has become cluttered with competitors. There are hundreds of e-bike companies around the world, from wellknown brands such as Jeep and Yamaha to dozens of startups, many of which fold before getting off the ground. Even big automakers have had varied success on two wheels. GM launched its Ariv e-bike in mid-2019
staff. The system is caring for more than 806 patients diagnosed with COVID-19, a 43 percent rise over the past week. Coupled with more than 430 employees currently in quarantine with the virus, the system is struggling to keep up, administrators said in a news release. Just 154 workers were in quarantine Tuesday. “The omicron variant is one of the most contagious viruses we have seen in our lifetime,” Dr. Nick Gilpin, Beaumont Health’s medical director of infection prevention and epidemiology, said in the release. “It’s more important than ever for the community to help contain the spread of this illness. Our health care systems are overwhelmed. If you have ignored our pleas for help before, now is the time to take action.” Administrators are doing what they can to limit the reduction of heart and cancer surgeries, but those could be delayed if the situation worsens, Dr. Jeffrey Fischgrund, chief of clinical services at Beaumont, told reporters during a briefing Thursday. Surgeries overall are down about 20 percent compared to before the pandemic. At Henry Ford, 41.8 percent of those, including the public, who have been tested for COVID-19 at its system early last week were positive, nearly double previous highs. Henry Ford Health has managed reduced staffing by closing beds available to patients. As of Tuesday, 97 beds are closed across its five hospitals, most at its flagship Detroit hospital and Wyandotte hospital.
The system expects to see beds nis Cunningham, system medical diclosed in varying numbers depending rector of infection control and prevenon staff shortages for the next two tion, told reporters in the media weeks to a month, Adnan Munkarah, briefing. “To address staffing shortages drivexecutive vice president and chief clinical officer at Henry Ford Health, told en by health care workers testing positive for COVID-19, hospitals are redereporters in a media briefing Tuesday. “We have had some issues and a ploying staff from other areas and nursing shortage for some time be- departments within their facilities or fore,” Munkarah said. “Some of this is system, canceling outpatient or nonerelated to the fact there is not enough mergency medical procedures and impeople in the health care workforce plementing processes to ensure approand burnout. It’s a combination of fac- priate staff is available during each shift change,” John tors.” director of Last month, Trinity “WE ARE TRYING TO Karasinski, communications for Health Michigan got the Michigan Health an extension that, HELP ALL OF THE and Hospital Associasince 2020, has allowed them to stop FACILITIES AS MUCH tion, told Crain’s in an emailed statement. creating patient care AS POSSIBLE, BUT Michigan hospitals plans to free up nurses’ are hoping for relief time to care for pa- WE REALLY DON’T from the revised U.S. tients in the staffing HAVE ANYBODY Centers for Disease crunch, saving up to 10 Control and Prevention percent of a nurse’s LEFT.” time, said Doug — Elizabeth Hertel, director, quarantine guidelines for health care workers. Dazcenzo, regional Department of Health The CDC lowered the chief nursing officer and Human Services quarantine time for for Trinity Health health care workers from 10 days to five Michigan. “We’re always trying to restructure days on Christmas Eve and for the genwork so that we can accomplish tasks eral public three days later. However, in different ways,” Dazcenzo said. “It’s the Michigan Occupational Safety and shift-by-shift approach. Sometimes Health Administration has not adoptwe’re pulling staff from one unit to an- ed those recommendations. Henry Ford, Sparrow and Trinity are other but we’re working really hard to still operating under the 10-day quarnot impact care.” At Henry Ford, the staffing shortages antine guidelines. But updated CDC recommendaare impacting its ability to test for COVID-19 and administer life-saving tions allow “elimination of quarantine monoclonal antibody therapies, Den- for certain health care workers, but
before pulling the plug less than a year later due to the downturn of business caused by the COVID-19 pandemic, according to the company. Bosch said it aims to differentiate itself by offering riders continuous customizability. “What’s now really new to this generation is the connectivity, so we are adding a digital layer,” Wasko said. “We are merging the physical experience of riding an e-bike with various digital conveniences, like personalization, like connectivity, like services.” The newest generation of Boschequipped e-bike — launching in the U.S. and abroad starting at $2,000 to as high as $13,000 — centers on the eBike Flow mobile app connected to the bike via Bluetooth. It allows users to adjust and save settings such as torque, maximum speed and assistance. Like a smartphone, the bike can be updated over the air. “That makes the system smart be-
cause it will continually evolve after the purchase,” Wasko said. Another new feature is the anti-theft system. If someone tries to steal the bike, its motor will turn off, an alarm will sound and a notification will be sent to the owner through the app, which also tracks the bike’s location. Among features being tested for potential future application is a safety system being developed by Royal Oakbased software company Tome in partnership with Bosch, Ford Motor Co., GM and other automotive companies. The software, in development for the past five years, is an AI-based Bicycle to Vehicle (B2V) communication system that aims to keep cyclists safer by being visible to a car even when its driver doesn’t see them, said Jake Sigal, founder and CEO of Tome. Sigal was among Crain’s 50 Names to Know in Information Technology in 2016. “The technology is based on the existing wireless messages that a vehicle can send to other vehicles or infrastructure — called basic safety messages and personal safety messages,” Sigal said. “That’s the work that Bosch has been involved in with Tome … is figuring out what the requirements are of these messages. It’s very technical in nature.” Bosch and Tome are hopeful the federal government’s recent focus on alternate forms of mobility will boost sales and safety. Though stalled in Congress, President Joe Biden’s Build Back Better bill includes a proposed $4.1 billion for e-bike tax credits, and the recently passed bipartisan infrastructure bill includes grant funding for beaconing, similar to the car-to-pedestrian technology being developed by Tome. “One of the barriers to buying an e-bike is, of course, it’s still a huge investment,” Wasko said. “We really think that we have to further proliferate e-bikes here in the U.S.” Contact: knagl@crain.com; (313) 446-0337; @kurt_nagl only as a last resort, if the workers’ absence would mean there are no longer enough staff to provide safe patient care, specific other amelioration strategies have already been tried, patients have been notified, and workers are utilizing additional PPE at all times.” Detroit Medical Center appears to be calling COVID positive workers back to the hospital under certain guidelines. Hospital workers can return if they have tested positive but have not had a fever for 24 hours or if symptoms have improved, but they must remain masked, even during breaks, and work in nonpatient care for 10 days, according to a Dec. 30 email sent from human resources obtained by Crain’s. “Those showing signs or symptoms consistent with COVID-19 are not allowed to report to work and must call the DMC Occupational Health Employee COVID-19 Hotline, where a determination is made on whether the employee is to be quarantined,” Jason Barzcy, group manager of operational communities for DMC, said in an emailed statement to Crain’s. “DMC employees who test positive for COVID-19 are allowed to return to work if they meet the new recommended CDC and Michigan Department of Health and Human Services guidelines and protocols.” Barzcy would not confirm how many DMC employees have tested positive for COVID-19 in recent days or how many are under quarantine. Contact: dwalsh@crain.com; (313) 446-6042; @dustinpwalsh
JANUARY 10, 2022 | CRAIN’S DETROIT BUSINESS | 21
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THE CONVERSATION
Mark Wallace on Detroit Riverfront Conservancy as it hits 20 years DETROIT RIVERFRONT CONSERVANCY: Mark Wallace is gearing up for the Detroit Riverfront Conservancy’s 20th anniversary in 2022 and what’s likely to be one of the most momentous years yet for the not-for-profit steward of public space along the Detroit River. A Detroiter since 1999, Wallace is entering his eighth year as CEO of the conservancy. In 2022, it has multiple projects that, by themselves, would be headlinegrabbing: Completion of the 3.5-mile east riverwalk by extending the pathway through the former Uniroyal site, making a bike ride from Hart Plaza to Belle Isle a long-awaited reality; breaking ground on the Ralph C. Wilson Jr. Centennial Park on the west riverfront and connecting the Riverfront Towers boardwalk to the new park. The conservancy also is spearheading construction of a new Southwest Greenway path along an old railway that will connect the riverfront to Michigan Central Station. Crain’s Senior Editor Chad Livengood recently toured parks and development sites with Wallace along the riverfront and into nearby neighborhoods to better understand the Riverfront Conservancy’s years of work connecting Detroiters and visitors to the Detroit River. | BY CHAD LIVENGOOD ` So the riverfront conservancy is closing in on two decades in business, and you’re busier than ever? It’s interesting the amount of things we’ve got going on (in 2022). We’re celebrating our 20th anniversary as an organization, we’ll be opening the Uniroyal site, we’ll be completing the last connection that gets us over to Ralph Wilson Park and we’re breaking ground on Ralph Wilson Park. All in one year. Unbelievable. ` It would seem daunting and improbable. Yeah. It’s exciting. ` What do you think is moving the needle the most for the riverfront? I think two things: One is, frankly COVID has reminded us that we need to be in physical space with other people. We’ve been noticing that as social media has been making us more and more unhappy. But when everybody had to be in their house for a long time we realized we missed being physically present with other people — and that’s what makes the city great. You can live in the woods, I like being in the woods, that’s a great way to live. I’m not a big fan of the suburbs. But anyplace where you can be around other people, I think is really inspiring. ... The second thing is the history of the riverfront, we’ve got a 20-year track record of doing what we say we’re going to, impacting the economic development landscape and also impacting people’s daily lives. If a community loves a place, I think you can’t underestimate the value of
that love — and people really love the riverfront. When you think about things that have been around for 20 years, a lot of times it’s when something is starting to get worse, right? It’s starting to fall apart. Yeah, it was cool when it started, yeah, that was 20 years ago, now we’re kind of bored of it. And the team at the riverfront conservancy, especially on the programming side, has continued to find new ways to engage people and bring people together. I also think specific to Detroit, it’s a really big city and it’s easy to feel lonely and it’s easy to feel left out. And you don’t feel lonely at the riverfront, you don’t feel left out at the riverfront. You feel like you’re part of something. I sometimes say we cheated because we started next to the Detroit River — it’s an incredible body of water. It’s like this epic thing. The volume of water that moves by is just incredible. The freighters are incredible. The wildlife is incredible. ` You became CEO in 2014, a rocky time in the city. The city was still in bankruptcy. There was a lot of uncertainty at that time. Would you have imagined you’d be paving the last stretch of the trail through the Uniroyal site by now? No. I think Detroit is tenacious. When there’s an idea that’s compelling like the riverfront, it’s easy to grab onto that idea and keep working until an opportunity opens up. If you talk to Matt and Faye (Detroit Riverfront Conservancy Board Chairman Matt Cullen and founding CEO Faye Nelson) back in 2002, they’d probably say it
would be done in five, six, seven years. It took a lot longer than that, but it hasn’t taken long. ` What’s your message to new potential funders? Why now should they get in? A couple of things. We’ve got a track record now that speaks to the relevance for the community. Public space is incredibly important for community resilience and investment in public space has a very predictable outcome on economic development. When you put a dollar into a park or a trail, it pays itself back. And the riverfront in particular is neat because if you care about the environment or ecology, we have a great story about the environment and ecology. If you care about economic development, we’ve got a great story about economic development. If you care about social cohesion and people coming together versus this polarization that we have, there’s a great story on that, too. There’s a lot of things that really resonate with investors and funders. And I like that, too. I love that this job is different every single day. I love that there’s a lot of real estate to it.
` As you enter this 20th year, and you’ve got all of these different projects in motion, what are your bigger challenges ahead? Two things are always a challenge: One is sustainability. We need to make sure that we can maintain everything that we’ve built. That’s been a commitment from day one and one we take very seriously. We also need to make sure that this remains a place where everyone feels welcomed. We’ve had a great track record with that, but that’s really an important thing for us to maintain focus on. ... If we’re able to continue to be sustainable and we’re also able to maintain that sense of everyone feeling welcome, I think we’ll continue to be an important player.
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HopCat set to return to Royal Oak at new location WHEN HOPCAT CLOSED its Royal Oak location in 2020, it made it clear it planned to return with its popular Cosmik Fries and wide variety of beers on tap at some point. Those plans are coming to fruition. HopCat, formerly at 208 Fifth Ave. east of Washington Avenue, will take over the spaces previously occupied by bd’s Mongolian Grill and Noodles World Kitchen on Main Street in downtown Royal Oak, according to Sam Magar, president of Ferndale-based real estate brokerage and management firm Magar & Co. Magar said both storefronts, at 420 Main St. and 430 Main St., have sat vacant for more than a year and have a combined 6,000 square feet of space. Magar & Co. and HopCat have a lease deal in place, but Magar declined to disclose details of the
Ferndale-based real estate brokerage and management firm Magar & Co. has a lease deal with HopCat to return to Royal Oak in a property on Main Street.
agreement or when the new location will open. Ned Lidvall, CEO of HopCat par-
ent company Project BarFly, declined to comment. The original Royal Oak location
opened in 2017 and closed in May 2020 amid a legal dispute with its landlord. Days later, its Grand Rapids-based parent company BarFly Ventures LLC filed for voluntary Chapter 11 bankruptcy protection citing financial struggles during the early months of the COVID-19 pandemic. BarFly Ventures, founded by Mark Sellers in 2008, later sold its assets to a previous lender in a $17.5 million deal. HopCat has nine locations, down from 15 at its height in 2020. The new Royal Oak location would give the company eight spots in Michigan, including in Midtown Detroit and Ann Arbor, plus Indianapolis and Lincoln, Neb. An Italian restaurant, Pastaio, is slated to take over the multilevel space that once housed HopCat.
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