Crain's Detroit Business July 12, 2021, issue by Crain's Detroit Business

UNIVERSITY TOWNS: College economies look for brisk bounceback. PAGE 10

ACM: With new leader, mobility test site works toward sustainability. PAGE 3

CRAINSDETROIT.COM I JULY 12, 2021

Giving others a hand

Detroit Public Theatre hopes to share success in new home

When Detroit Public Theatre launched in 2015, it was able to do something many fledgling theaters couldn’t. With veteran leaders who brought local and national connections and support, DPT was able to negotiate for space in the Max M. and Marjorie S. Fisher Music Center, the home of the Detroit Symphony Orchestra. The theater grew rapidly from its berth there, producing over two dozen productions, including “Dot” by Colman Domingo, a playwright and actor known for his role in the television series “Fear the Walking Dead”; and “Detroit ’67” and “Skeleton Crew” by Dominique Morisseau, who wrote the Broadway play, “Ain’t Too Proud — The Life and Times of The Temptations,” and won a 2018 MacArthur Foundation Genius Grant. DPT commissioned a play from Grand Rapids native Noah Haidle in 2018 and produced it the same year. “Birthday Candles” is slated to open on Broadway next spring, with actress Debra Messing in the lead role. After a busy first six years, slowed only by the pandemic, the theater is making plans for a more permanent home in Detroit’s Midtown area. But it hasn’t forgotten its roots.

A scene from Detroit Public Theatre’s world premiere production of “Birthday Candles” in 2018 at the Max M. and Marjorie S. Fisher Music Center in the Robert A. & Maggie Allesee Hall.

See THEATER on Page 18

CHUK NOWAK

BY SHERRI WELCH

‘Rising star’ Home Point seeks to fly under radar The third of metro Detroit’s Big Three mortgage companies sets a different path BY NICK MANES

Unlike some of its larger, regional rivals, don't expect to see the logo for Home Point Capital Inc. on Super Bowl commercials or the jerseys of professional athletes. Phil Shoemaker, president of

originations for the rapidly growing Ann Arbor-based wholesale mortgage lender, calls Detroit-based Rocket Mortgage and United Wholesale Mortgage Inc. in Pontiac "worthy rivals." But Home Point, a relatively new entrant on the public stock markets like the others, has no interest in be-

NEWSPAPER

As such, the company ing a company with a large works primarily with indemarketing budget that's pendent brokers who will widely known by consumshop around potential ers. mortgage deals to a variety Home Point, Shoemakof lenders, seeking the best er puts it simply, is a mortterms for their clients. gage company. Home Point operates a dis"We're never going to be tributed model with peoa consumer-focused ple around the country brand," said Shoemaker. Shoemaker who maintain close rela"Our goal is to be a really, really, really good wholesale lend- tionships with local real estate agents and loan officers, Shoemaker said. er."

CRAIN’S LISTS See the rundown of the largest manufacturers and auto suppliers in Michigan. PAGE 15-16

While executives at Home Point stress they plan to stay in their own lane and grow via relationships with independent mortgage brokers and real estate agents, the company — founded in 2015 by a Connecticut private equity firm — is still considerably smaller than its rivals in the region. That's something Shoemaker says he and other executives are fine with. See HOME POINT on Page 21

NEED TO KNOW

AUGMENTED REALITY

THE WEEK IN REVIEW, WITH AN EYE ON WHAT’S NEXT ` TRINITY HEALTH IS LATEST SYSTEM TO REQUIRE VACCINES THE NEWS: Livonia-based Trinity Health announced Thursday a COVID-19 vaccine mandate for all employees and contractors. Trinity is mandating the vaccine for various employees with rolling deadlines, according to an internal memo that Mike Slubowski, president and CEO, sent to employees.

WHY IT MATTERS: Trinity becomes the second health system locally behind Henry Ford Health System to require the vaccine. It is one of the largest health systems nationally to unveil such a requirement, with 117,000 employees in 22 states.

` CRAIG LOOKS TO ESTABLISH REPUBLICAN BONA FIDES THE NEWS: Ex-Detroit police chief James Craig on Tuesday sought to burnish his Republican credentials before a likely run for governor, telling party stalwarts about his evolution from being a “born” Democrat. Craig, who retired last month, said he

has been a Republican for many years and voted for Donald Trump in 2016 and 2020. WHY IT MATTERS: Craig is widely expected to throw his hat in the ring against Gov. Gretchen Whitmer for the 2022 election.

`FORMER UAW OFFICIAL PEARSON GETS A YEAR IN PRISON THE NEWS: Former UAW Regional Director Vance Pearson was sentenced Tuesday to a year in federal prison for conspiring to embezzle union funds and further racketeering activity with other high-ranking union officials. The court recognized that Pearson played “a minor role but at the same time, it was active,” said U.S. District Judge Paul Borman. The court did not order Pearson to pay a fine. WHY IT MATTERS: Pearson’s original sentencing guideline was 24-30 months. But acting U.S. Attorney Saima Mohsin last month requested a reduced 14-month sentence because of Pearson’s cooperation and assistance in the investigation and prosecutions of ex-UAW presidents Gary Jones and Dennis Williams.

` DEXKO GLOBAL SELLS FOR $3.4 BILLION THE NEWS: The private equity owner of Novi-based DexKo Global Inc. has

agreed to sell the chassis manufacturer to Brookfield Business Partners LP in a $3.4 billion deal. The sale by KPS Capital Partners LP to the Bermuda-based publicly traded partnership was announced Monday and is expected to close by the end of the year, pending regulatory approval. WHY IT MATTERS: The deal is one of the largest for a manufacturing company in Michigan this year. DexKo supplies chassis, axles and other components for trailers, RVs and towable equipment manufacturers. It was formed in 2015 through the merger of Elkhart, Ind.-based Dexter Axle Co. and Germany-based AL-KO Vehicle Technology.

` SECRETARY OF STATE TO EXTEND HOURS

Wixom-based LightGuide nets $15 million investment ` A $15 million venture capital investment for a Wixom augmented-reality company focused on improving manufacturing efficiency aims to propel the company toward global growth. LightGuide Inc., headquartered near the I-96 and Wixom Road interchange, said the funding was led by G2 Venture Partners out of Menlo Park, Calif., with participation from Michigan Capital Advisors in Bloomfield Hills and Capital Midwest Fund in Wisconsin. “LightGuide is bridging the gap between Industry 4.0 technology and the best of human intelligence, expanding and empowering the worldwide manufacturing workforce,” CEO and Founder Paul Ryznar said in a release. The company’s systems are used in the automotive, aerospace, and heavy equipment sectors, as well as by agricultural equipment producers, and distribution companies, and in health care. Clients include manufacturing companies such as GE, Bosch, Caterpillar, Magna, and JR Automation, according to the release. The systems allow workers to follow visual indicators to complete each step of a manufacturing process. A red light flashes and a buzzer sounds if a step is missed or incorrect part is used.

THE NEWS: Michigan will extend the hours of operation for drivers’ licenses and vehicle registrations in an effort to shorten lines at branch offices, Secretary of State Jocelyn Benson said Wednesday. From July 19 through Sept. 30, weekday service will be extended by an hour.

LightGuide’s augmented reality training software. | LIGHTGUIDE

WHY IT MATTERS: Benson said the changes will provide 120,000 additional Michigan residents in-person services. The department has struggled to meet demand for appointments since COVID limitations took effect.

2 | CRAIN’S DETROIT BUSINESS | JULY 12, 2021

WORKFORCE

TECHNOLOGY

Employers increasingly bring health care to their workers BY DUSTIN WALSH

GETTING ON TRACK

A vehicle outfitted with automated features at The American Center for Mobility in Ypsilanti. | NIC ANTAYA FOR CRAIN’S DETROIT BUSINESS

American Center for Mobility makes strides toward sustainability BY KURT NAGL

American Center for Mobility President and CEO Reuben Sarkar. | NIC ANTAYA FOR CRAIN’S DETROIT BUSINESS

Reuben Sarkar sees the future again at Willow Run, where he launched his career 20 years ago. Sarkar, 45, of Saginaw got his start as a materials engineer at General Motors Powertrain Transmission in Ypsilanti Township before working his way up to lead design release engineer for the Chevy Volt electric drive unit. Shortly after the automaker shuttered its Willow Run plant as part of its bankruptcy in 2009, Sarkar left Michigan for greener pastures. He helped build startups in Colorado and South Carolina, and he worked for 3 1/2 years on the East Coast as deputy assistant sec-

retary of sustainable transportation for the U.S. Department of Energy. His latest career move brought him back to his old stomping grounds. As CEO of the American Center for Mobility, he is tasked this time not with creating the technology of the future, but with incubating and showcasing it at one of the country’s most unique test labs. “I knew about ACM long before it was built out because I was in Washington, D.C., when the state was out there basically trying to pitch the idea of this advanced mobility test center,” Sarkar said during a recent interview at the ACM’s campus, sprawled across 500 acres once home to GM’s pow-

ertrain plant. “The stage that it was at was really the more important decision factor for me because the infrastructure was built out and they were in need of business development, and that’s what I do.” The ACM is at a critical point of its nearly four-year existence — it’s time for the proving ground to prove its own viability. Sarkar laid out a broad vision for the mobility hub that extends beyond just its test track. He took the leadership role in April 2020, days before the ACM closed due to the COVID-19 pandemic, and he now has more runway to make big changes to the business. See MOBILITY on Page 20

Employees at General Motors Co. will have access to a group of dedicated Henry Ford Health System physicians at its Warren Tech Center starting this month. The automaker contracted the Detroit health system to provide primary care services to employees, with plans for a grand opening on July 19. GM joins a growing list of large companies in the U.S. and across Southeast Michigan choosing to bring doctors in or near the workplace in recent years. Large employers, those with 5,000 or more employees, opening primary care clinics on site or nearby has expanded in recent years. More than 31 percent of those large employers offered primary care directly to employees on site or near site in 2020, up from 20 percent in 2019, according to data from New York asset management and consulting firm Mercer. Locally, GM follows United Wholesale Mortgage, Rocket Companies and Amazon in offering the services. The companies are building out the clinics dedicated to employees as a means to improve primary care among their workforce, improve productivity and, in theory, save on longterm health care costs. According to experts, these clinics may represent the future template of employer-led health care. GM and Henry Ford Health declined to comment for this story ahead of a formal announcement by the automaker.

Convenience and co-pays In February, Amazon opened three dedicated primary care offices across See WORK-BASED on Page 20

HEALTH CARE

Rising pay in other industries blows holes in medical workforce BY DUSTIN WALSH

Beaumont Health has more than 2,600 open positions across its eight hospitals and more than 165 outpatient centers. Roughly 5 percent of those positions fall under one job — medical assistant. A medical assistant performs relatively routine tasks, such as filling out insurance forms, scheduling laboratory appointments or preparing patients for treatment. But, increasingly, the job is becoming more clinical and their responsibilities expanding to where medical assistants are functionally bedside nurses. And as one of the lowest paid clinical jobs in health care — the median wage in the U.S. is $17.23 per hour and $16.75 per hour in Michigan with an entry level wage of $13.63 — the roles are increasingly

more difficult to fill as workers seek employment in other industries that require less training and offer better benefits and bigger pay than health care. “Medical assistants earn wages no better than those with no required training or skills,” said Anne Scott, health center operations manager for the Michigan Primary Care Association. “Some fast food chains pay $15 an hour, so why would you go into a health care position that also requires an expensive training certificate? Many people can’t just shell out $6,000 for a certificate program, go into debt and then make $14 an hour.”

If you’re not first, you’re last Medical assistant Kevin Howze makes the rounds at Henry Ford Hospital in Detroit. | HENRY FORD HEALTH SYSTEM

The same issue is playing out across other industries long known

for good pay and consistent work, like manufacturing. Michigan and the Midwest were built on the backs of factory employment, which historically paid significantly more than other jobs in the region, particularly for workers with limited to no secondary education or training. But times, they are a-changing. Hourly factory workers made an average of 56 percent more than restaurant and fast food workers in April, according to U.S. Department of Labor data analyzed by the Wall Street Journal. But that’s down from 83 percent more in 2011. In 2020, medical assistants made only 11 percent more than retail workers’ average wage of $15.03 per hour and 39 percent more than fast food cooks. See WORKFORCE on Page 19 JULY 12, 2021 | CRAIN’S DETROIT BUSINESS | 3

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Northern Equities Group has a vision for office space designed for a COVID-19scarred world. The Farmington Hills-based developer of genKirk erally squat subPINHO urban office parks envisions going into Novi for site plan approvals and entitlements in the near future. Then, it would await a tenant in the Haggerty Corridor Corporate Park for a building that is 30,000 square feet of indoor space and about 5,000 square feet of outdoor space. Conceptual plans show floor to ceiling glass doors that lead to open collaboration areas outdoors, windows that open and higher ceilings, said Matthew Sosin, president of Northern Equities Group. “We have a lot of things already that I think are going to be more important maybe than they used to be,” Sosin said, referring to the company’s existing building stock in Haggerty Corridor Corporate Park at 12 Mile and Haggerty roads and others in the western Oakland County area. “But this building was meant to take it like one step further than we already have over the last 20 years. We can incorporate things that are more like being at home. I always talk about our buildings being lived in. I think this takes this concept a little bit further. The office can look a little more like your home. You can make the indoors and the outdoors cohesive. People like screened-in porches and decks and patios and you can do that at work.” The key, of course, to the building getting built is finding a user — speculative office construction is very rare, although not extinct, as I noted in this space recently. And finding a tenant could be hard for the foreseeable future. The metro Detroit office market still struggles due to being overbuilt in the 1980s during a building boom, and the COVID-19 pandemic has dampened any forward momentum it saw during the economy’s im-

The former AirTime trampoline location in Troy is under construction and believed to be the new home of the region’s third known Amazon Fresh grocery concept. | KIRK PINHO/ CRAIN’S DETROIT BUSINESS

“THE OFFICE CAN LOOK A LITTLE MORE LIKE YOUR HOME. YOU CAN MAKE THE INDOORS AND THE OUTDOORS COHESIVE. PEOPLE LIKE SCREENED-IN PORCHES AND DECKS AND PATIOS AND YOU CAN DO THAT AT WORK.” — Matthew Sosin, president, Northern Equities Group

provement the last several years. That being said, some new office space — particularly in downtown Detroit — is still being built, including by the Ilitch family’s Olympia Development of Michigan, Dan Gilbert’s Bedrock LLC and Chemical Bank/ TCF Bank/Huntington Bank/Whatever the Heck You Call It These Days. Many are still working from home, at least on a partial basis, although there has been an increase in people returning to the office as COVID-19 vaccinations are more prevalent and restrictions related to the pandemic are lifted. The office market in the first quarter was 21.1 percent vacant, according to the Royal Oak office of broker-

age firm JLL, and has some 68.2 million square feet. In the Farmington/Farmington Hills area, the market is 4.66 million square feet with a vacancy rate of 17.7 percent.

Another Amazon Fresh clue in Troy Last week, I published a story about Amazon Fresh — the Seattle-based retail giant’s new bricksand-mortar grocery store concept — taking over the former AirTime trampoline place in Troy. Visuals in the site plan lined up with images from Amazon Fresh locations elsewhere, and one of the documents I received through a public records request said “all work is subject to inspection and review at any time by Amazon.” What I missed was something others around the country had noted: In other areas, the name “Mendel” appeared as somewhat of a code word for Amazon Fresh locations. Turns out, the project in Troy is referred to as “Project Mendel” in one of the documents I received. Just another clue to keep in mind. Contact: kpinho@crain.com; (313) 446-0412; @kirkpinhoCDB

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RECREATION

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aple ates

luxury retail space available Wixom-based General RV said it has around one-third of the normal inventory across its 13 super centers due to high demand. | GENERAL RV

Michigan RV industry hits some bumps on journey toward boom Dealerships enjoy wider margins, struggle with staffing BY KURT NAGL

Jerry Bridges looks at his books and sees black, but nothing else about the numbers over the past year and a half are normal. There’s never been so many people looking for an RV or fifth wheel at Lloyd Bridges Traveland in Chelsea. Even so, sales volume is down 40 percent from last year. “I can’t get no inventory,” said Jerry Bridges, owner of the RV dealer his father started in 1966. “The demand is up, but you can’t get no product. And at least another year it will continue, and the business will suffer.” The dealer has around 150 new units on its lot, but before the COVID-19 pandemic it had at least 400. It has 11 used vehicles to choose from but would have upward of 100 in a normal market. On top of that, the business has struggled to find employees to move the inventory it does have. Around 40 employees work at the RV dealer, which needs more like 50, Bridges said, but he “can’t get anyone to work.” It isn’t all bad at Lloyd Bridges Traveland, though. Booming demand and a dearth of supply have pushed margins way up and offset some of the lost sales. An average RV priced at $30,000 one year ago is going for $38,000 today, and patrons have no problem paying it, Bridges said. For many Michigan residents, the open road was the only escape from restlessness brought on by the COVID-19 pandemic and ensuing “stay at home” orders from the government. With the airline industry only just recently beginning to rebound, many turned to RVs and campers for their vacations. A new RV was the solution for Carol Chisholm. The 70-year-old Saginaw resident retired as an industrial electrician for General Motors Co. six years ago and has since used her free time to travel the world. That pursuit became nearly impossible during the pandemic. “When this whole thing started, who knew how long it would last,” Chisholm said. “I thought, if I had a small trailer, I’d be self-contained, and I wouldn’t have to worry about what other people are doing.” She wasn’t the only one with this

Carol Chisholm of Saginaw did a lot of research online before purchasing her 17RWD Vintage Cruiser by Indiana-based Gulf Stream Coach Inc.

idea. After loads of research online, she decided on the 17RWD Vintage Cruiser by Indiana-based Gulf Stream Coach Inc., retailing for around $21,000. The first dealership she tried in Midland seemed too busy to even return her inquiries, so she turned to Dolney RV Center in Linwood. They told her she would have to order by December if she wanted it by May and that some customization options might not be available due to the strain on manufacturers. “I had been told that there was such a demand,” Chisholm said. “I called the manufacturer and said, ‘This is what I want, no more and no less.’” A total of 430,412 RVs were shipped to dealers in 2020, marking a 6 percent year-over-year increase despite the industry being shut down for two months because of the pandemic. More than 500,000 units are expected to be shipped off the line in 2021, which would mark the highest annual total ever recorded, according to the RV Industry Association. The industry has set an RV shipment record for each of the past seven months. Most RV and camper dealers in Michigan receive the bulk of their inventory from the nation’s largest RV manufacturers, which are headquartered in the Midwest, though not Michigan. Among the largest manufacturers

by sales is Elkhart, Ind.-based Thor Industries Inc. The RV behemoth recorded $8 billion in sales in 2020 and a whopping $5.7 billion backlog, up nearly 200 percent from the previous year. Like automakers in Detroit and around the world, Thor’s ability to meet demand is being crimped by supply issues, including the computer chip shortage and ballooning cost for materials. “While we reported excellent results, the supply chain continues to be a constraint for the RV industry and Thor Industries alike, limiting our ability to further increase production to meet increased levels of dealer demand,” Colleen Zuhl, SVP and CFO at Thor, said in a news release. The struggles at Lloyd Bridges and other relatively small players in the Michigan dealership scene are much the same even for the giants. Wixom-based General RV, the most dominant seller of new RVs in the state, is tracking for another record year after hitting $1.22 billion in sales last year. “Revenue would be up more than 20 percent if we actually had more inventory,” said Loren Baidas, president of General RV, which was started in 1962 by his grandfather Abe. “Manufacturers are not able to keep up with production.” Across General RV’s 13 super centers, there are no more than 1,800 units, Baidas said. Before the pandemic buying spree, inventory held steady at 5,000. Like Lloyd Bridges, General RV is enjoying fatter margins but struggling to find employees. The company is aiming to hire 200 more workers to reach 2,000. It’ll likely need the help even after summer travel season. The dealership usually orders vehicles from manufacturers a few months in advance but is now ordering them as far out as a year. General RV has a growing list of about 1,000 customers waiting for their RVs to make it down the assembly line. “We’ve never really had that before,” Baidas said. “I would rather have strong demand than have a bunch of RVs sitting here and nobody wants them.” Contact: knagl@crain.com; (313) 446-0337; @kurt_nagl

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EDITORIAL

Vaccine realities force hard choices T

DANIEL SAAD FOR CRAIN’S DETROIT BUSINESS

turn to campus this fall. They, too, should have the right to decide what’s best for the students living under their care in close quarters. The University of Michigan in April announced that students who choose to live on the Ann Arbor campus will be required to be fully vaccinated, with some exemptions. About 55 percent of the 47,000 students projected to attend UM in the fall have reported being vaccinated, MLive reported this week. Other Michigan universities with mandates include Albion College, Kalamazoo College, Lawrence Technological University and Oakland University, according to University Business Magazine. Michigan State University, by contrast, will not mandate vaccines “outside of some very limited settings,” President Samuel Stanley announced in a letter to the campus community last month. An MSU spokesman said officials hoped that not requiring the vaccine would encourage students to “make the correct choice” and get it on their own accord. Unfortunately, simple encouragement and incentives don’t appear to be moving the needle. Gov. Gretchen Whitmer last week followed the lead of some other states in offering a $1 million lottery drawing for those who get vaccinated. It’s unclear how it will affect vaccination rates. California and Ohio were among the states noting an uptick in shots after the lottery was announced. But as USA Today reported Thursday, a Boston University School of Medicine study found Ohio’s lottery did not increase vaccination rates when compared to other states without such incentives. Vaccine mandates do not require anyone to get vaccinated. They do require individuals to make hard choices about where they live, work or study. No employer wants to wade into these waters. But in these unprecedented times, it’s clear many feel they have no choice.

COMMENTARY

For small business news, a new place to land

SYLVIA JARRUS FOR CRAIN’S DETROIT BUSINESS

wo major Michigan health systems and a handful of universities so far have mandated COVID-19 vaccines for employees and students — and more are likely on the way as each new announcement creates precedent for others. It’s an issue that’s not going away. Even as the pandemic recedes, all employers will need to consider the risk as workers return to offices in a state and country that hasn’t met the goal of vaccinating 70 percent of the population. Michigan’s rate of people fully vaccinated stands at just above 47 percent of the entire population, just slightly below the rate for the U.S. as a whole, according to the Mayo Clinic. The decision to decline the vaccine is individual, but it collecTHE DECISION TO tively affects us all. Employers must DECLINE THE make hard decisions about the safety of VACCINE IS their workforce in the INDIVIDUAL, absence of widespread voluntary vacBUT IT cinations. It’s easier COLLECTIVELY to get people to reto work when AFFECTS US ALL. turn they don’t have to worry about catching or spreading the virus. It’s certainly easy to understand the urgency for hospitals, which have both the right and the responsibility to impose health-related mandates. On Thursday, Livonia-based Trinity Health announced a COVID-19 vaccine mandate for all employees and contractors. The nonprofit Catholic system operates 92 hospitals in 22 states, five Saint Joseph Mercy Health System hospitals, three Mercy Health hospitals and two employed medical groups in Michigan. Trinity follows Henry Ford Health System, which mandated the vaccine late last month with a Sept. 1 deadline for all employees, contractors and students. Michigan universities also are debating vaccine mandates as students prepare to re-

rain’s Detroit Business has amped up its coverage of small businesses and restaurants over the past year amid the unprecedented challenges of the pandemic and its aftermath. Now, we’re making this essential content easier to find. We are dedicating a new page on our website — crainsdetroit.com/small-businessspotlight — that offers easy, one-stop navigation to news, podcasts and helpful resources. The page includes links to our in-depth Small Business Spotlight features by reporter Jay Davis that explore issues of interest to small business owners. Each monthly package includes a podcast with a local business owner and a “toolkit” with resources so that we can help solve problems along with reporting them. Because many small businesses are still struggling in the wake of COVID, we’ve included a permanent link to financial aid that we will continue to update as new programs become available. Find that at crainsdetroit.com/smallbusinessaid. Some recent topics Jay has covered for Small Business Spotlight include: ` Tips for a small business ready to grow. ` How to establish a strong succession plan for a small business. ` Tips for starting a small business. ` How to thrive as a gig worker. Each package features an insightful audio conversation with local small businesspeople sharing personal stories. On one recent podcast, Jay talked to CJ Patterson, 32, manager of Video Exclusive in Dearborn Heights — the lone remaining video rental store in metro Detroit — about how the store has adapted and leveraged its expertise to stay in business. The podcast also has featured Detroit Flower Co. owner Ja’Nye Hampton, who

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. 8 | CRAIN’S DETROIT BUSINESS | JULY 12, 2021

Kelley

ROOT

Executive Editor shared the challenges of starting a business at just 22 years old; Megan Ackroyd, president of Ackroyd’s Scottish Bakery in Redford Township, reflecting on her path to joining the family business; and others. In addition to the in-depth spotlight packages, the new WE’RE MAKING landing page also in- THIS ESSENTIAL cludes daily local, state and national CONTENT EASIER small business news. TO FIND. You’ll also find links to our recently revived Restaurant Roundup, our weekly dispatch on metro Detroit restaurant news — openings, closings, menu overhauls, relocations and more. We hope you’ll check out the new page and bookmark it. As always, we welcome your story ideas, tips and feedback on coverage. Contact me at Kelley.root@crain.com and/or reporter Jay Davis at Jason.davis@crain.com. Thanks for reading!

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.

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.

OTHER VOICES

Michigan can help small businesses save on federal taxes BY MARK TISDEL

With a stroke of her pen, Gov. Gretchen Whitmer can increase tax savings for numerous Michigan small businesses without decreasing state revenue. Mark Tisdel, As unusual as R-Rochester it may sound, a Hills, is a change to state Michigan state law can reduce representative. businesses’ federal tax burden. In fact, bipartisan supermajorities in the Michigan Legislature recently passed my bill to achieve just that, and it now anxiously awaits the governor’s signature. Federal law allows businesses and individuals to deduct state and local taxes or SALT on their federal returns. When Congress approved tax reform legislation in 2017, the individual SALT deduction was capped at $10,000. Small businesses organized as flow-through entities, such as S corporations or partnerships, file state income taxes through their owners’ individual returns, and therefore the individual deduction limit applies. Meanwhile, larger C corporations can continue writing off the entirety of their SALT burdens on their federal taxes. To help correct this disparity and level the playing field for small businesses, I introduced House Bill 4288, which would create an optional flow-through entity tax that businesses could pay in lieu of the state income tax. Because the new tax would be paid at the entity level rather than the individual level, the $10,000 cap would no longer apply, and businesses could maximize their federal SALT deduction. This tax savings plan is a win-win for Michigan. Our entire state wins when small businesses win. The Michigan Chamber of Commerce estimates the proposal could result in nearly $200 million in savings for Michigan businesses. That’s nearly

$200 million staying right here in will occur without decreasing taxes Michigan in the hands of resource- paid to state coffers. In other words, ful entrepreneurs — money that can Michigan small businesses will see be invested to grow the local busi- millions of dollars in federal tax nesses in our communities THE ALTERNATE FLOW-THROUGH ENTITY and create new jobs throughout TAX IS EQUIVALENT TO THE STATE INCOME the Great Lakes TAX RATE, SO THE CHANGE IN TAX State. At the same STRUCTURE WILL OCCUR WITHOUT time, our state wins because DECREASING TAXES PAID TO STATE COFFERS. the plan will not reduce state or local revenue. The savings, while contributions to our alternate flow-through entity tax is state and local governments — reequivalent to the state income tax sources that fund schools, roads, rate, so the change in tax structure public safety, parks and other im-

portant local services — remain unchanged. This win-win proposal would be a boon to our state’s economy at any time, but a boost for small businesses could not come at a better time than the present. It’s no secret that the COVID-19 pandemic and related government policies set up significant obstacles that particularly hurt small businesses. Our friends and neighbors who operate these local enterprises could desperately use some financial relief, and our state can help expand savings for small businesses. Finally, we can enact this plan immediately and confidently. The

federal government confirmed last fall that businesses may indeed claim an unlimited SALT deduction for a flow-through entity tax like the one proposed. Small businesses are the backbone of our economy. In urban, suburban and rural Michigan communities, the neighborhood shops we know and love deserve a fair tax code. Allowing small companies to claim the same unlimited SALT deduction as larger corporations will help make business taxes more equitable. Gov. Whitmer should join the House of Representatives and Senate to make Michigan a better state for small businesses.

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JULY 12, 2021 | CRAIN’S DETROIT BUSINESS | 9

CRAIN’S MICHIGAN BUSINESS: UNIVERSITY TOWNS

COLLEGE TOWNS LEARN PANDEMIC LESSONS With COVID-19 restrictions out the door, university towns across Michigan bounce back

Downtown Marquette along West Washington Street. Some Marquette businesses struggled without the traditional college activities at Northern Michigan University.

BY ASHLEY ZLATOPOLSKY | SPECIAL TO CRAIN’S DETROIT BUSINESS

As communities across Michigan begin to bounce back following the end of COVID-19 public health restrictions, university towns in particular are feeling the economic rebound. Cities anchored by major universities, including Marquette (Northern Michigan University), Allendale (Grand Valley State University), East Lansing (Michigan State University), Ypsilanti (Eastern Michigan University) and Ann Arbor (University of Michigan), are seeing early signs of growth as businesses open back up and students return to campus. A double whammy of statewide COVID-19 restrictions and virtual or hybrid schooling meant both a loss of downtown revenue and on-campus student body during the first 15 months of the pandemic, the latter of which greatly reduced foot traffic in these cities. Marquette, a popular Up North tourist destination, was the only exception to the trend.

10 | CRAIN’S DETROIT BUSINESS | JULY 12, 2021

Through a strategic combination of social zones, business relief programs, citywide beautification and improvements, and outdoor dining, university towns across Michigan weathered the storm, though some have experienced permanent losses and changes. “When COVID-19 first hit, we were at a standstill like everybody else,” said East Lansing administrator of community and economic development Adam Cummins. “It was a wake-up call. We needed to diversify our local economy and not have all of our eggs in one basket, or be solely dependent on the student population to carry our economy through good times and bad.” Now, university towns continue to plan ahead to ensure their cities remain prosperous, accessible and economically diverse in years to come. Looking back, here’s how they navigated COVID-19, stepped

in to shore up their economies and laid the groundwork for a secure future.

East Lansing As the home of Michigan State University, East Lansing primarily catered to the student body for decades. When COVID-19 hit and students transitioned to virtual learning, many moved back home — and out of the city — for the remainder of 2020. Foot traffic came to a halt. “Most businesses were down 100 percent in revenue,” Cummins said. “A lot of them, when they were able to open with limited capacity, chose not to because the cost of doing business wasn’t worth reopening.” Even those who remained open continued to see a 50-80 percent drop in sales, he adds. To get these numbers back up,

East Lansing’s Downtown Development Authority attacked the economic crisis from all angles. Most recently, it announced an Outdoor Area Expansion and Beautification Grant Program that will award up to $2,500 to eligible downtown businesses on a firstcome, first-served basis, which can be used for approved infrastructure and/or site plan design expenditure. Yet Cummins said with only so much money to allocate for grants, the city had to think outside of the box. “We started focusing on indirect financial assistance and what we can do to keep the local economy going during this time,” he said, “to draw people downtown in a safe way.” The idea was to invest $200,000 into placemaking activities to get people outdoors, despite having limited public spaces. Like many other cities across the country, East

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NIC ANTAYA FOR CRAIN’S DETROIT BUSINESS

The Albert EL Fresco street closure in East Lansing near Michigan State University offered space for outdoor gathering and to encourage more foot traffic during the pandemic. | EAST LANSING DOWNTOWN DEVELOPMENT AUTHORITY

Lansing relied heavily on outdoor dining to keep restaurants afloat, but also activated underused public spaces. They launched an underground farmers market, held every Sunday in a parking garage below a Marriott hotel, and an art installation created in partnership with East Lansing Public Schools that displayed student artwork in the windows of downtown businesses. East Lansing also invested heavily in seating infrastructure, including picnic tables, lounge chairs and umbrellas, plus public lighting, to create what Cummins calls “an inviting place.” The infrastructure is aligned with a street closure program, where East Lansing closes down busy streets for short periods of time to make them pedestrian-only, a strategy to increase foot traffic. The efforts, Cummins said, paid off. When East Lansing’s busy Al-

bert Street was open to pedestrians only for one week in June, Barrio, a popular taco restaurant, saw a 20-25 percent increase in sales. In general, East Lansing DDA estimates that street closures increase downtown foot traffic by 30-35 percent, according to early data being collected. “People are starting to come back downtown,” Cummins said, “whether it’s hanging out at one of the seating installs we’ve made or dining outdoors.” Scott Rolen, 35, owner of East Lansing Greek restaurant Lou & Harry’s, agrees the city is seeing signs of life and remains hopeful that the local economy will rebound. Lou & Harry’s, which relies on in-house dining and alcohol sales, lost 70 percent of its business during COVID-19. Through online ordering and meal delivery services, Lou & Harry’s survived. But Rolen believes

The Ypsilanti DDA is working closely with Eastern Michigan University to rebuild the downtown social infrastructure and encourage students to once again interact with local businesses. | ANNARBOR.ORG

community support will be key to long-term survival. “I believe our area will be OK,” he said. “We have a very young demographic with Michigan State University eager to support a lot of the long-standing establishments to keep them from going anywhere.”

Marquette When Marquette, home of Northern Michigan University, surveyed the community to gauge how business revenue changed since March 2020, the numbers were concerning. According to participants in the latest May survey, 68 percent of Marquette businesses said revenue was down more than 75 percent, while 16 percent said revenue was down 50-75 percent. Rebecca Finco, executive director of Marquette DDA, said Marquette was lucky. The city continued to see plenty of tourism over the 2020

summer months, especially with many Michiganders looking to travel local in light of nationwide COVID-19 restrictions. Despite the pandemic, Finco estimates Marquette’s summer tourism was on par with nonpandemic years, though businesses did see less foot traffic due to social distancing. “Winter was more challenging,” Finco said. “There was a lot of struggle and concern.” She said 10 downtown Marquette businesses closed throughout COVID-19 — but another 10 managed to open. “There was still interest for folks to go ahead and open a business during what was a very uncertain time.” Marquette focused on reconstruction projects to make the downtown area more accessible. They rebuilt the 100 Block, which Finco said is one of the most popular areas downtown. The hope is that a brand new street paired with reopened businesses will drive even

more foot traffic, especially from tourists. The city also allowed businesses to expand their outdoor services, like dining and merchandise displays, into private parking lots and sidewalks to give them more space to operate. This meant Marquette needed to assess the city’s parking options and make it easier to park. The first step was to provide free parking during the early months of the pandemic. “How do you charge for parking when people aren’t even downtown?” Finco said. Foot traffic declined significantly due to businesses being closed or open with limited service combined with virtual and hybrid schooling and the loss of traditional college activities. Once paid parking was reinstated, Marquette transitioned from a permit parking system to a contactless digital parking system. See COLLEGE on Page 12

JULY 12, 2021 | CRAIN’S DETROIT BUSINESS | 11

ANN ARBOR DOWNTOWN DEVELOPMENT AUTHORITY

FOCUS | UNIVERSITY TOWNS

Street closures in downtown Ann Arbor helped restaurants offer outdoor seating during the pandemic when businesses struggled without the usual traffic from the University of Michigan.

COLLEGE

From Page 10

“We had to really look at ourselves and what might be a more antiquated way of doing things,” Finco said. “We looked at what we could bring up to date and modernize to make [the downtown area] more streamlined and convenient for people.”

Ann Arbor Ann Arbor, the home of the University of Michigan, was a ghost town during the first year of COVID-19, said Maura Thomson, interim executive director of Ann Arbor DDA. Usually packed with thousands of people for football games and festivals, the city was essentially deserted. “Our downtown business community not only lost business from residents and community members,” Thomson said, “but it highlighted the importance of the university.” Thomson said the biggest impact was felt during what would have been University of Michigan’s graduation, which usually sees restaurants booking out more than a year in advance. Without an in-person graduation at the university in 2020, many restaurants were left with no revenue at all at a time they’d usually be preparing for their busiest week of the year. The city’s parking revenue also plummeted, Thomson said. To help local businesses weather the storm, Ann Arbor DDA worked closely with the city and local merchants to shift multiple COVID-19 relief efforts into gear. Like Marquette, Ann Arbor repurposed parking spaces to give businesses, mainly restaurants, more room for sidewalk patios. It also added protected bike lanes to the streets to help with social distancing while increasing accessibility for bikers. Thomson said this effort began as a pilot program that will now become permanent in the fall. Ann Arbor DDA also took out ads in local newspapers reminding people to support downtown businesses, 12 | CRAIN’S DETROIT BUSINESS | JULY 12, 2021

Grand Valley State University’s campus in Allendale | GRAND VALLEY STATE UNIVERSITY

while putting special curbside carryout spots into place in front of restaurants that give people 15 minutes of free parking. Ann Arbor’s COVID-19 relief efforts are starting to pay off. Thomson said foot traffic is picking up, and while some businesses, like Logan Restaurant and Bar Louie, closed for good during the pandemic, others, such as Aroma Indian Cuisine and Eat Ann Arbor, opened during the crisis. For Ann Arbor’s retail stores in particular, many of which are brickand-mortar and have thrived for decades on in-person business, the pandemic was a wake-up call to always have a digital backup plan. Curtis Sullivan, owner of comic book store Vault of Midnight, said his sales dropped 85 percent in the beginning of the pandemic — the first time in its 25 years of operation. Luckily, Sullivan, 49, was able to quickly put together an online web store, which he said helped Vault of Midnight keep all of its staff employed. Yet 16 months after COVID-19 first hit, Sullivan said his sales, while up significantly, aren’t back to pre-pandemic numbers. He’s just beginning to see loyal customers, who used to frequent the store weekly, return for in-person shopping. “We’re excited at the rate of increase,” Sullivan said. “We think we could finish the year good, barring any other catastrophes.” He said Vault of Midnight plans to keep its web store operational, but will shift

“WHEN YOU LOOK AT RESTAURANTS THAT WERE STRUGGLING TO STAY OPEN DURING THE PANDEMIC, A LOT OF THEIR WORKFORCE HAD MOVED OUT. ” — Adam Elenbaas, Allendale Charter Township supervisor

most of its focus back to in-person shopping and events. “We’re still 100 percent committed to brick-and-mortar,” Sullivan said. “We’re in the physical world.”

Ypsilanti Meanwhile in neighboring Ypsilanti, home of Eastern Michigan University, a historic downtown district had to reconfigure the way it did business. Christopher Jacobs, Ypsilanti DDA director, said the city focused heavily on revamping restaurants and retail stores to allow for social distancing. These buildings, he said, were designed with narrow aisles and narrow kitchens. A “Save our Stages” fund also allocated money toward live music venues like Ziggy’s, which saw no in-person performances for months. Similar to East Lansing, Ypsilanti put street closures into effect to help boost foot traffic in the downtown area, this time paired with live music and other entertainment program-

ming. “That was highly successful,” Jacobs said. “Most restaurants reported 80 percent of their business came from those improved outdoor spaces.” Jacobs said Ypsilanti is also eyeing the American Rescue Plan in the hopes of securing a $200,000 grant for local businesses, though the proposal hasn’t been fully worked out yet. With the student body being a major economic driver in downtown Ypsilanti, particularly the West Cross district, Jacobs said these funds are more important than ever as many students moved back home during the pandemic. “The reality is that we lost a lot of customers,” he said of the student population, who frequented local restaurants and establishments. During COVID-19, six businesses closed permanently from the negative economic impact, though one Mexican restaurant, Dolores, recently reopened. “The integration of the student population within Ypsilanti is critical to our success.” Now, Ypsilanti DDA is working closely with Eastern Michigan University to rebuild the downtown social infrastructure and encourage the student body to once again interact with local businesses. The most impactful plan of action, Jacobs believes, is continuing street closures. “The street closures have helped us experiment on creating a destination,” he said of downtown Ypsilanti, which he explains is steadily becoming a regional attraction. “This experiment could last longer than COVID-19 when it comes to [reimagining] how we use public streets.”

Allendale On the west side of Michigan, Allendale, just 15 miles outside of Grand Rapids, is home to Grand Valley State University. Like other university towns, Allendale took a huge hit when students transitioned to virtual and hybrid learning during the COVID-19 pandemic. “Last March, we had a large portion of our population that left,” said

Adam Elenbaas, Allendale Charter Township supervisor. This unexpected loss not only resulted in a significantly decreased customer base for businesses in the downtown area, but a workforce loss as well. “When you look at restaurants that were struggling to stay open during the pandemic, a lot of their workforce had moved out,” Elenbaas said. “That was one of the challenges, even in the reopening, that those students were still studying virtually and weren’t available to work in the college town where they normally reside.” To help restaurants stay in business, Allendale, though not able to enact street closures or social districts because of the city’s layout, instead focused on providing local business owners with the tools and supplies they needed to operate throughout Michigan’s four seasons. Elenbaas said the city allocated funding for heaters and igloos, which he said were a major economic driver, particularly in the colder months. “Restaurants that couldn’t open their dining rooms could still allow in-person patronage from their customers,” he said. For restaurants without drivethrus, like Trail Point Brewing Company, tapping into outdoor dining (complete with heaters and igloos) was essential to their survival. “An outdoor dining model allowed businesses to accomplish two things,” Elenbaas said. “One, it kept them moving in business, even if it wasn’t at as high of a capacity as they normally would see. Secondly, it created a different atmosphere that was maybe a little more memorable in the long run.” Now, like in other university towns, local businesses across downtown Allendale are reimagining the way they operate to lay the groundwork for a safe — and secure — future. “Business owners are looking at how to evaluate their business models and how they do business going forward,” Elenbaas said, “compared to how they did business in the past.”

FOOD & DRINK

Did the pandemic kill the business lunch in Detroit? Work-from-home takes lunchtime traffic away from restaurants, causing cut in daytime hours BY ALLISON NICOLE SMITH

Before the pandemic, white-collar workers often hashed out crucial business matters over lunch, from deals and contracts to recruitment and networking. But for the last 16 months, business centers have been largely deserted and many restaurateurs, whose day-to-day business relied on the steady influx of lunch crowds, have been eagerly awaiting the return of Detroit’s office workers. While some of the city’s largest business district employers have brought their employees back into office buildings, others are in no rush or are gradually phasing in employees. Before the pandemic, Detroit’s greater downtown area saw a workforce as large as 130,000 employees. Most of those workers haven’t returned yet, said Eric Larson, CEO of the Downtown Detroit Partnership, a nonprofit organization focused on the economic development of the city center. “Just about 15 to 20 percent of the employee base is coming into the city on a consistent basis. By the fall, we expect it will be well over 50 percent,” he said. But the increased prevalence of flexible workplace environments

Lunchtime at Avalon Cafe and Bakery draws some outdoor diners and takeout business at its location on West Willis Street in Midtown. |KIRK PINHO/CRAIN’S DETROIT BUSINESS

and employee schedules means the city’s business center is unlikely to regain its former workforce density, at least not for a while. “For the foreseeable future, we’re going to see the flexible work schedules. We’re going to see a rotation of employee groups,” said Larson. “I don’t project that we will be back at full employment until sometime towards the end of the year and going into 2022.” The gradual uptick of in-office workers and the implementation of hybrid workplace models raises long-term questions about whether the post-pandemic economy will reinvigorate the practice of weekday business lunches, and how it will look. When Firebird Tavern opened in Detroit’s Greektown in 2013, the restaurant had “been open for lunch since day one,” said its co-owner Owen Burke. But since reopening in early February, Firebird has operated limited hours, and lunch isn’t part of the equation. Before the pandemic, lunchtime service made up 10 percent of Firebird’s total revenue, which Burke attributed to a combination of locale, speedy service and affordable prices. See LUNCH on Page 14

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LUNCH

From Page 13

Traffic Jam and Snug, a pub-style restaurant located in Midtown, also slashed its hours of operation to Thursday through Sunday, with lunch only on the weekend. Lunchtime business used to make up around 35 percent of the restaurant’s revenue, said owner Scott Lowell. In a bright spot, Lowell estimated sales have gone up 20 percent recently; but he said he hasn’t noticed a significant return of working professionals dining in for lunch At The Apparatus Room, an industrial-chic New American restaurant located at Detroit Foundation Hotel, its pre-pandemic hours spanned breakfast, lunch and dinner service, seven days a week. Nowadays, they’re only open for dinner Wednesday through Sunday. Its pre-pandemic revenue raked in 18 to 20 percent in sales from lunchtime service, according to Scotty Young-Vidal, director of food and beverage at the Detroit Foundation Hotel. Multiple restaurateurs in Detroit’s business locales pointed out that a sizable chunk of the area’s culinary landscape remains closed for lunch. “We’ve been stuck on an island down here. We’ve been left to kind of die on the vine,” said Burke. “We desperately need to get more people back in the office.” After an arduous year doing a fraction of their normal business, Burke said he was thankful that demand was on the upswing, as sports stadiums fill up again and workers trickle into the offices; but he admitted that the recent uptick in business wasn’t the boon he’d been hoping for. “Everything got shut off like a light switch. We were hoping maybe it would turn back on like a light switch,” said Burke. “It’s more like a dimmer being turned back on slowly.” Unless lunchtime activity returns to pre-pandemic levels, The Apparatus Room will revamp its service altogether. “Is breakfast or lunch ever going to be like it was for us before the pandemic? Currently, it doesn’t seem like that’s going to be case,” said Young-Vidal. “We’re looking

Casual eateries like Bucharest Grill on Piquette Street in Milwaukee Junction are among few choices for lunchtime diners. | KIRK PINHO/ CRAIN’S DETROIT BUSINESS

into different avenues like a Starbucks experience, where you get your coffee and grab-and-go sandwich.” Young-Vidal has also observed more activity in the hotel’s communal spaces, with people chatting over coffee for brief, casual meetups before “getting back to it.” But the pandemic hasn’t disrupted all restaurant owners’ lunchtime operations. For Joe Vicari, whose restaurant group owns Joe Muer Seafood in the Renaissance Center, along with multiple Andiamo restaurants in Metro Detroit and other businesses, lunchtime service has been “surprisingly steady,” a fact he attributed to the lack of competition in the area during the weekday lunch hours. Lunchtime traffic has been on a downward trend for years, according to Vicari, who said he remembers the legendary “three-martini” lunch ritual exemplified on “Mad Men.” “General Motors allowed their people to go to lunch with their vendors,” Vicari recalled. “We used to do $4,000 lunches. Today, we’re lucky if we do $1,000 to $1,200 lunches.”

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Lunch is no longer part of the equation at Firebird Tavern in Greektown.

There is data to back Vicari up. In 2016, there were 433 million fewer lunchtime trips to restaurants than the year before, according to market-research firm NPD Group Inc. The same firm found that 24 percent more people were working from home and there was an 8 percent rise in online food orders, trends the pandemic accelerated. “90 percent of our transactions happen online now,” said Godwin Ihentuge, the chef-owner of Yum Village, a fast-casual Afro-Caribbean dining spot in New Center. Ihentuge said he’s expanded the restaurant’s social media presence during the pandemic to capitalize on the increased influence digital media has on food sales. Burke said he and his business partner Tony Piraino noticed the shift from dine-in lunch to “desktop dining,” as experts call it, before the pandemic struck. “I would see people pushing cartfuls of Buffalo Wild Wings food down the street back to the office building for all the Quicken kids that sell mortgages. And I thought, ‘God, this is not going away.’ “ To stay ahead of the curve, they began developing an app in 2019 that allows customers to place pickup orders; it launched in September 2020. The Firebird Tavern owners aren’t the only ones who’ve noticed a widespread drop-off in weekday lunch business. For Sandy Levine, co-owner of Chartreuse Kitchen & Cocktails, a farm-to-table eatery that opened in 2015, lunch service

was never a cash cow despite the dining spot’s central location inside the Park Shelton in Midtown, just down the street from the Detroit Institute of Arts. “We opened for lunch initially as almost a means of advertising, so that all of the people that did work down here just knew about us. And obviously, we wanted to have a place for them to go,” said Levine. “Lunch was really never that much of a financial boom for us,” he added, saying it was an “easy decision” to close for lunch during the pandemic. Prior to the pandemic, lunchtime sales totaled about 5 percent of the restaurant’s overall business. Underlying the decline in lunchtime restaurant consumption is a compelling economic reason: cost. Small restaurants and national chains alike have increased their menu prices as high as 5 percent in recent weeks to offset rising labor and food costs. Consumer prices spiked 5 percent in May compared to the previous year, driven by the surge in food prices, according to the U.S. Department of Labor. Instead of dine-in at traditional sit-down restaurants, working professionals, particularly younger ones, tend to eschew restaurant dine-in for takeaway from fast-casual venues or prepared meals at their desks. Bangkok 96 Street Food, a Thai eatery located in the Detroit Shipping Co. food hall, which seats up to 400 diners, is a testament to this

trend. In recent weeks, Genevieve Vang, the chef and owner, has noticed demand is surpassing pre-pandemic levels. “We have to work four times more than before,” said Vang of the recent surge in foot traffic. The ongoing labor shortage has strained Vang’s staff ; until she can hire around 12 more employees to meet the sudden rise in demand, the eatery will stay closed all day on Mondays, said Vang. But the question remains as to whether downtown and Midtown restaurants will see a resurgence of suit-and-tie clientele during lunchtime hours as more professionals continue to return to office towers, and whether or not it will it look the way it did back in 2019. As remote work options become the new normal, along with hybrid and flexible work schedules, business lunches will likely become less ubiquitous, which could lead to a tight market. “What was already a cutthroat time of the day — lunch — we’re now all fighting for a smaller pool of people,” said Burke. “So, it’s going to be challenging.” Restaurant owners may need to embrace young working professionals’ weekday dining habits in order to make it the post-pandemic marketplace, Burke noted. “We adapted to people not drinking at lunch. We adapted to people not smoking in bars,” he said. “It (the pandemic) has forced us to reconsider how we look at lunch. And if people don’t want to come in, well, you adapt or die.” Young-Vidal raises a similar point: “No longer are those business transactions being made in person, shaking your hand over a table. It’s being done how you and I are talking right now,” he said over a Zoom call. But even if technology has superseded most face-to-face professional interactions, Zoom conferences may not be able to replace other aspects of workplace culture, such as wining and dining clients, interviewing potential new hires, swapping corporate strategies and hobnobbing with colleagues. This has some restaurateurs optimistic that the business lunch ritual is poised for a post-pandemic comeback. “For the last 16 months, I think a lot of people have, either intentionally or unintentionally, had to enjoy food out of a box,” said Jeremy Sasson, the owner of Heirloom Hospitality, which operates Prime + Proper steakhouse in downtown Detroit and two Townhouse restaurant locations. “What I think they’ve missed most about being in the office is the ability to congregate, celebrate and enjoy their co-workers,” he said. These kinds of professional exchanges are likely to be buoyed by the reintroduction of tax write-offs for corporate lunches and dinners incurred in 2021 and 2022. Sasson, who is reopening Townhouse Detroit in late July following an intensive remodel, said he’s had “30, 40, 50 people come up during hours of the lunch window looking to come and inquire about the lunch service” at Townhouse, which he said gives him a bullish outlook for post-pandemic lunchtime dining. Most restaurateurs predict they’ll start to see a boost to weekday lunch activity around September and onward, citing increased vaccinations, football season and a bigger workforce in the city’s central business district.

CRAIN'S LIST | MICHIGAN MANUFACTURERS Ranked by 2020 revenue COMPANY ADDRESS PHONE;WEBSITE

TOP EXECUTIVE(S)

REVENUE ($000,000) 2020/2019

EMPLOYEES JAN. 2021 MICHIGAN/ WORLDWIDE

MICHIGAN PLANT LOCATIONS

TYPE OF ORGANIZATION

FORD MOTOR CO.

James Farley Jr. president, CEO & director

$127,144.0

46,746 NA

Dearborn, Flat Rock, Wayne, Woodhaven, Romeo, Sterling Heights, Livonia, Ypsilanti

Automobile manufacturer

GENERAL MOTORS CO.

Mary Barra chairman & CEO

$122,485.0

47,940 154,854

Bay City, Brownstown Township, Detroit/Hamtramck, Flint (3), Grand Rapids, Lansing (2), Milford, Lake Orion, Pontiac, Romulus, Saginaw, Swartz Creek, Warren, Ypsilanti, Wixom

Automobile manufacturer

STELLANTIS NV (FORMERLY FCA US LLC) 1

Mark Stewart COO, North America

$106,502.0 2

40,843 3 89,000

Detroit (3) Sterling Heights (2), Trenton (2), Warren (2), Dundee

Automobile manufacturer

DOW INC.

James Fitterling chairman & CEO

$38,542.0

NA NA

Dow Michigan operations, Bay City, Auburn (Dow Central Campus), Auburn Operations, Freeland

Materials science

WHIRLPOOL CORP.

Marc Bitzer chairman & CEO

$19,456.0

4,000 78,000

None

Home appliance company

LEAR CORP.

Raymond Scott Jr. president, CEO & director

$17,045.5

NA NA

Rochester Hills, Detroit, Traverse City, Roscommon, Farwell, Flint, Taylor, Southfield (HQ), Highland Park, Sparta

Automotive supplier

MAGNA INTERNATIONAL OF AMERICA INC.

Swamy Kotagiri CEO

$15,736.0 4

9,065 158,000

Holland, Brownstown Twp., Sterling Heights, Plymouth Twp., Grand Haven, Battle Creek, Warren, New Hudson, Novi, Highland Park, Troy, Shelby Twp., Newaygo, Alto Twp., Kentwood, Auburn Hills, Grand Blanc Twp., Delta Twp., Delhi Twp., St. Clair, and Boyne City

Mobility technology

STRYKER

Kevin Lobo chair & CEO

$14,351.0

NA 43,000

Kalamazoo, Portage

Medical technology company

TENNECO 5 27300 West 11 Mile, Southfield 48034 248-354-7700; tenneco.com

Brian Kesseler CEO

$14,283.0

5,000 53,000

Lansing, Litchfield, Marshall, Grass Lake, Monroe, Greenville

Designer, manufacturer and marketer of clean air, powertrain, ride performance and aftermarket products

KELLOGG CO.

Steven Cahillane chairman, CEO & president

$13,770.0

NA NA

Battle Creek, Grand Rapids, Wyoming

Food processor

APTIV PLC

Kevin Clark president & CEO

$13,066.0

NA NA

None

Automotive supplier

ADIENT PLC

Douglas Del Grosso president, CEO & director

$12,670.0

3,900 77,000

Detroit, Warren, Lansing, Battle Creek, Lakewood, Charlotte and Madison Heights

Automotive seating supplier

ROBERT BOSCH LLC

Mike Mansuetti president of Bosch in North America

$12,300.0

3,841 395,000

St. Joseph, Kentwood

Technology and services supplier for mobility solutions, industrial technology, consumer goods and energy and building technology

CONTINENTAL AUTOMOTIVE SYSTEMS U.S. INC.

Samir Salman CEO, North America region

$11,560.8 6

NA NA

Auburn Hills, Brimley, Dearborn, Rochester Hills, Troy

Automotive supplier

BORGWARNER INC.

Frederic Lissalde president, CEO & director

$10,165.0

NA NA

Cadillac, Livonia, Marshall

Manufactures components and systems for propulsion systems for combustion engine, hybrid and electric vehicles

DENSO INTERNATIONAL AMERICA INC.

Seiji Maeda 8 CEO, North America

$8,678.0 9

NA NA

Battle Creek

Supplier of automotive components

AMWAY

Milind Pant CEO

$8,500.0

NA 15,000

Ada

Direct selling business

MASCO CORP.

Keith Allman CEO, president & director

$7,188.0

NA NA

Ann Arbor, Adrian, Novi, Brownstown, Lapeer

Manufactures products for the home improvement and new home construction markets

DANA INC.

James Kamsickas chairman & CEO Jonathan Collins CFO

$7,106.0

1,500 38,000

Auburn Hills, Warren, Novi, Plymouth

Design and manufacture of propulsion and energy-management solutions for all mobility markets across the globe

UFP INDUSTRIES INC. 10 2801 East Beltline Ave., NE, Grand Rapids 49525 616-364-6161; ufpi.com

Matthew Missad CEO & director Dick Gauthier VP, Business Outreach

$5,154.0

NA NA

White Pigeon, Lansing, Spring Lake, Walker

Manufacturing

AISIN WORLD CORP. OF AMERICA

Scott Turpin president & CEO

$5,141.5

NA NA

No plants but seven Michigan facilities

Automotive components and systems supplier

PERRIGO CO. PLC

Murray Kessler CEO, president & director

$5,063.3

4,000 11,500

Allegan, Holland

Consumer goods

YAZAKI NORTH AMERICA INC.

6801 Haggerty Road, Canton Township 48187 734-983-1000; yazaki-na.com

Bo Andersson president & CEO of Yazaki North and Central America, and president of Yazaki Europe

$5,041.3

NA NA

Canton Township, Petoskey, Lansing

Full systems supplier expertise in wire harness, electrical and data products and solutions enable vehicle electrification, connectivity and autonomy integration

AMERICAN AXLE AND MANUFACTURING HOLDINGS INC.

David Dauch chairman & CEO

$4,710.8

NA NA

Three Rivers, Auburn Hills, Fraser, Oxford, Royal Oak, Troy, Litchfield, Warren, Kingsford, Sterling Heights, Coldwater

Automotive supplier

JOYSON SAFETY SYSTEMS 11

Guido Durrer global president & CEO

$4,655.8

674 51,000

Auburn Hills, Armada, Pontiac

Air bags, inflators, seat belts, steering wheels, active safety and electronics

1 American Road, Dearborn 48126 313-322-3000; ford.com 300 Renaissance Center, Detroit 48265 313-667-1500; gm.com

1000 Chrysler Drive, Auburn Hills 48326-2766 248-576-5741; www.stellantis.com

2211 H.H. Dow Way, Midland 48674 989-636-1000; dow.com 2000 North M-63, Benton Harbor 49022 269-923-5000; whirlpoolcorp.com 21557 Telegraph Road, Southfield 48033 248-447-1500; lear.com 750 Tower Drive, Troy 48098 248-631-1100; magna.com

2825 Airview Blvd., Kalamazoo 49002 269-385-2600; stryker.com

One Kellogg Square, Battle Creek 49016 269-961-2000; kelloggcompany.com 5725 Innovation Drive, Troy 48098 248-813-2000; aptiv.com 49200 Halyard Drive, Plymouth 48170 734-254-5000; adient.com 38000 Hills Tech Drive, Farmington Hills 48331 248-876-1000; boschusa.com 1 Continental Drive, Auburn Hills 48326 248-393-5300; continental-corporation.com/en-us 3850 Hamlin Road, Auburn Hills 48326 248-754-9200; borgwarner.com 24777 Denso Drive, Southfield 48033 248-350-7500; denso.com/us-ca/en 7575 Fulton St. E., Ada 49355 616-787-1000; amwayglobal.com 17450 College Parkway, Livonia 48152 313-274-7400; masco.com 27870 Cabot Dr, Novi, MI , Novi 48377 419-887-3000; dana.com

15300 Centennial Drive, Northville 48168 734-453-5551; aisinworld.com 515 Eastern Ave., Allegan 49010 269-673-8451; perrigo.com

One Dauch Drive, Detroit 48211 313-758-2000; aam.com

2025 Harmon Road, Auburn Hills 48326 586-726-3800; joysonsafety.com

$155,900.0

$137,237.0

$85,968.3

$42,951.0

$20,419.0

$19,810.3

$19,349.0

$14,884.0

$17,450.0

$13,578.0

$14,357.0

$16,526.0

$14,400.0

$13,023.4 7

$10,168.0

$10,900.0

$8,400.0

$6,707.0

$8,620.0

$4,416.0

$5,712.0 4

$4,837.4

$5,333.0 4

$6,530.9

$6,614.2

Researched by Sonya D. Hill: shill@crain.com | This list of manufacturing companies is an approximate compilation of manufacturers with headquarters or substantial operations in Michigan. It is not a complete listing but the most

comprehensive available. Crain's estimates are based on industry analyses and benchmarks, news reports and a wide range of other sources. Unless otherwise noted, information was provided by the companies. Companies with headquarters elsewhere are listed with the address and top executive of their main Michigan office. Actual revenue figures may vary. NA = not available. NOTES: 1. The Fiat Chrysler merger with PSA Group was completed on Jan. 16. 2. The 2020 revenue is based on Dec. 31, 2020, euro to dollars rate of 1.2216. 3. Crain's estimate. 4. Automotive News. 5. Tenneco Inc. acquired Federal-Mogul in October 2018. 6. The 2020 revenue figures represent NAFTA sales of Continental AG, based on a Dec. 31, 2020, euro to dollars rate of 1.2216. 7. The 2019 revenue figures represent NAFTA sales of Continental AG, based on a Dec. 31, 2019, euro to dollars. 8. Replaced Kenichiro Ito as North American CEO in January. 9. Automotive News fiscal estimate. 10. Formerly Universal Forest Products Inc. 11. A deal finalized in April 2018 resulted in a combined Takata and Key Safety company renamed Joyson Safety Systems.

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CRAIN'S LIST | OEM PARTS SUPPLIERS Ranked by 2020 automotive original-equipment parts sales COMPANY ADDRESS PHONE; WEBSITE

TOP LOCAL EXECUTIVE(S)

OEM SALES ($000,000) 2020

OEM SALES ($000,000) 2019

PERCENT CHANGE

PRODUCTS

LEAR CORP.

Raymond Scott Jr. president, CEO & director

$17,046.0 1

$19,810.0 1

-14.0%

Seating and electrical

MAGNA INTERNATIONAL OF AMERICA INC.

Swamy Kotagiri CEO

$15,736.0 1

$19,349.0

-18.7%

Complete vehicle engineering and contract manufacturing expertise, as well as product capabilities which include body, chassis, exterior, seating, powertrain, active driver assistance, electronics, mirrors & lighting, mechatronics and roof systems. Magna also has electronic and software capabilities across many of these areas

ADIENT PLC

Douglas Del Grosso president, CEO & director

$12,670.0 1

$16,526.0 1

-23.3%

Automotive seating

TENNECO 2 27300 West 11 Mile, Southfield 48034 248-354-7700; tenneco.com

Brian Kesseler CEO

$12,654.0

$14,900.0

-15.1%

Exhaust, pistons and piston rings, bearings, spark plugs, valves and valvetrain, seals and gaskets, ride control, suspension, brakes, elastomers, NVH performance and protective sleeves and wraps

BORGWARNER INC.

Frederic Lissalde president, CEO & director

$9,971.0 3

$10,168.0

-1.9%

Turbochargers, electric motors, control units, valve-timing systems, ignitions, emissions systems, thermal systems, transmission clutches & controls, torque management systems & rotating electric machines

ZF NORTH AMERICA

Martin Fischer president & member board of management

$8,684.0 1

$9,926.0 1

-12.5%

Electronics & ADAS, car chassis technology, electrified powertrain, active safety, passive safety & commercial vehicle systems

DENSO INTERNATIONAL AMERICA INC.

Seiji Maeda 4 CEO, North America

$8,678.0 5

$10,900.0

-20.4%

Powertrain and electrification systems, electronics systems, thermal systems and information and safety systems

ROBERT BOSCH LLC

Mike Mansuetti president of Bosch in North America

$7,569.0

$8,380.0

-9.7%

Injection technology and powertrain peripherals for internalcombustion engines, solutions for powertrain electrification, vehicle safety systems, driver-assistance and automated functions, technology for infotainment, vehicle-to-vehicle and vehicle-to-infrastructure communication, repair-shop concepts and technology and services for the automotive aftermarket

CONTINENTAL AUTOMOTIVE SYSTEMS U.S. INC.

Samir Salman CEO, North America region

$7,421.0 1

$9,180.0 1

-19.2%

Tires, stability-management systems, electronic chassis systems and brake systems

DANA INC.

James Kamsickas chairman & CEO Jonathan Collins CFO

$7,106.0

$8,620.0

-17.6%

Drive Systems (axles, driveshafts, transmissions), electrodynamic (motor, inverters, software), gaskets, thermal-management products, motion systems, and digital solutions (analytics)

AISIN WORLD CORP. OF AMERICA

Scott Turpin president & CEO

$5,141.5

$5,712.0 1

-10.0%

Body, brake and chassis systems; electronics; drivetrain and engine components

YAZAKI NORTH AMERICA INC.

Bo Andersson president & CEO of Yazaki North and Central America, and president of Yazaki Europe

$5,041.0 3

$5,333.0 3

-5.5%

Connection systems, electrical distribution systems, electronic components, instrumentation

PANASONIC AUTOMOTIVE SYSTEMS CO. OF AMERICA

Tom Gebhardt CEO Scott Kirchner president

$4,925.0 1

$5,862.0 1

-16.0%

Automotive multimedia products and components

AMERICAN AXLE AND MANUFACTURING HOLDINGS INC.

David Dauch chairman & CEO

$4,711.0 1

$6,531.0 1

-27.9%

Driveline systems, chassis components and forged products, axles

JOYSON SAFETY SYSTEMS 6

Guido Durrer global president & CEO

$4,655.8

$6,614.2

-29.6%

Airbags, seat belts, steering wheels, electronics

FAURECIA NORTH AMERICA

Kevin Lammers senior VP, Faurecia Group North America; president, Faurecia USA Holdings Inc.

$4,396.2 1

$4,975.0 1

-11.6%

Seating, interiors, Clarion electronics and clean mobility

APTIV PLC

Kevin Clark president & CEO

$4,020.0 7

$4,868.0 7

-17.4%

Electronics, transportation components and integrated systems

HYUNDAI MOBIS (FORMERLY MOBIS NORTH AMERICA)

Chung Kook Park CEO

$3,979.0 1

$4,598.0 1

-13.5%

Chassis, cockpit and front-end modules; ABS, ESC, MDPS, ASV parts, LED lamps, sensors, electronic control systems, airbags, hybrid powertrains, parts and power control units

TI FLUID SYSTEMS PLC

William Kozyra CEO, president & executive director

$3,211.0 7

$3,818.7

-15.9%

Fuel systems; fluid carrying products; hydroformed products

NEXTEER AUTOMOTIVE

Tao Liu president & global COO

$3,032.2

$3,575.7

-15.2%

Automotive systems

PISTON GROUP 8 3000 Town Center, Suite 3250, Southfield 48075 (313) 541-8674; pistongroup.com

Vinnie Johnson founder, chairman and CEO

$2,852.0 1

$2,851.1

0.0%

Module assembly, HVAC units, trim covers, visors

MAHLE INDUSTRIES INC.

Scott Ferriman president

$2,744.0 1

$3,700.0

-25.8%

Engine components, filter systems, vehicle air conditioning and engine cooling

VISTEON CORP.

Sachin Lawande president, CEO & director

$2,548.0 1

$2,945.0 1

-13.5%

Climate controls, electronics, interiors

FLEX LTD.

Mike Thoeny President, Flex Automotive

$2,500.0 1

$2,800.0

-10.7%

Autonomy, connectivity, electrification, smart tech

COOPER-STANDARD HOLDINGS INC.

Jeffrey Edwards chairman & CEO

$2,375.0 1

$3,100.0 1

-23.4%

Sealing, fuel and brake delivery and fluid transfer systems

21557 Telegraph Road, Southfield 48033 248-447-1500; lear.com 750 Tower Drive, Troy 48098 248-631-1100; magna.com

49200 Halyard Drive, Plymouth 48170 734-254-5000; adient.com

3850 Hamlin Road, Auburn Hills 48326 248-754-9200; borgwarner.com 12001 Tech Center Drive, Livonia 48150 734-855-2600; zf.com 24777 Denso Drive, Southfield 48033 248-350-7500; denso.com/us-ca/en

38000 Hills Tech Drive, Farmington Hills 48331 248-876-1000; boschusa.com

1 Continental Drive, Auburn Hills 48326 248-393-5300; continental-corporation.com/en-us 27870 Cabot Dr, Novi, MI , Novi 48377 419-887-3000; dana.com

15300 Centennial Drive, Northville 48168 734-453-5551; aisinworld.com

6801 Haggerty Road, Canton Township 48187 734-983-1000; yazaki-na.com

26455 American Drive, Southfield 48034 248-447-7000; panasonic.com

One Dauch Drive, Detroit 48211 313-758-2000; aam.com

2025 Harmon Road, Auburn Hills 48326 586-726-3800; joysonsafety.com

2800 High Meadow Circle, Auburn Hills 48326 248-724-5100; faurecia.com

5725 Innovation Drive, Troy 48098 248-813-2000; aptiv.com 23255 Commerce Drive, Farmington Hills 48335 248-426-5577; mobis.co.kr 2020 Taylor Road, Auburn Hills 48326 248-296-8000; tifluidsystems.com 1272 Doris Road, Auburn Hills 48326 248-340-8200; nexteer.com

23030 Mahle Drive, Farmington Hills 48335 248-305-8200; us.mahle.com One Village Center Drive, Van Buren 48111 800-847-8366; visteon.com 27755 Stansbury Blvd., Suite #300, Farmington Hills 48334 248-263-8732; flex.com 40300 Traditions Drive, Northville 48168 248-596-5900; cooperstandard.com

Researched by Sonya D. Hill: shill@crain.com | This list of automotive suppliers is an approximate compilation. For companies based in Detroit and divisions of U.S.-based companies in Detroit, figure is for worldwide OEM sales. For divisions

of foreign-owned companies, figure is for North American OEM sales. It is not a complete listing but the most comprehensive available. Crain's estimates are based on industry analyses and benchmarks, news reports and a wide range of other sources. Unless otherwise noted, information was provided by the companies. NA = not available. NOTES: 1. Automotive News. 2. Tenneco Inc. acquired Federal-Mogul in October 2018. 3. Automotive News fiscal year estimate. 4. Replaced Kenichiro Ito as North American CEO in January. 5. Automotive News fiscal estimate. 6. A deal finalized in April 2018 resulted in a combined Takata and Key Safety company renamed Joyson Safety Systems. 7. Automotive News estimate. 8. Holding company for Piston Automotive, Irvin Automotive, Detroit Thermal Systems and Airea.

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Dana works with leading light vehicle OEMs and strategic partners to develop integrated systems and modular solutions for a wide range of electrified vehicle applications. Whether we’re expertly guiding electric vehicle architecture or reliably supplying components, we have the flexibility to meet any need.

THEATER

From Page 1

“When we came up with the idea to have space of our own, we knew we wanted to offer space to other theaters and dance companies that didn’t have a home of their own,” said Sarah Winkler, a co-founder and producing artistic director of DPT. DPT is working with four other local performing arts organizations to design a residency program that would meet their needs for space, support and affordability. A $51,000 grant from the Community Foundation for Southeast Michigan is funding the effort with input from InsideOut Literary Arts, A Host of People, Teen Hype Youth Development Program and GhostLight Productions. “We knew we wanted to provide for others what the DSO provided for us, which is state -of-the-art performance space and residency space,” Winkler said.

There is particularly need for space that has the right number of seats, accessibility and technical specifications that allow performers to realize their creative ideas for audiences, said Omari Rush, executive director of arts association Culture Source and chairman of the Michigan Council for Arts and Cultural Affairs. “For a small theater company, committing to this type of ideal space can be too big of an upfront investment for a production, which is why the DPT and DSO partnership at the Max was so smart,” he said. “Now with this new space, it is great to see DPT be enthusiastic about both expanding (its) work and expanding (its) service to the field.”

A home of its own DPT was founded in 2015 by theater veterans Courtney Burkett, Sarah Clare Corporandy and Sarah Winkler and joined last fall by Morisseau, a Cass Tech graduate and early advis-

er to the theater who is serving as executive artistic producer. While the partnership with the DSO was ideal, the need for DPT to find a home of its own became clear as it grew along with the DSO education program it shared space with in the Robert A. and Maggie Allesee Hall at the Max, Winkler said. With help from advisers including DPT board secretary David Jaffe, an attorney with Birmingham-based law firm Jaffe Counsel PLC, who leads the theater's building and design committee, and Midtown Detroit Executive Director Sue Mosey, who also serves on the committee, it settled on the former garage and Bays English Muffins factory at 3960 Third Avenue. The new building is only blocks from the Max. Exterior work on the 1919 building has been completed, and renovations on the 7,000-squarefoot interior, with its high ceilings and exposed brick, are set to begin this summer and wrap up by spring. DPT has raised $2 million toward a

PEOPLE ON THE MOVE

$5 million goal to fund the renovations of the building, three new staff members and operations. Some big names have been among DPT's strongest and earliest supporters, Winkler said. They’ve included: Forbes Co. Managing Partner Nate Forbes and his wife Cathy; Ann and Jim Nicholson, co-chairman of PVS Chemicals Inc.; former TCF Fiancial Corp. CEO David Provost and TCF Bank; Maeva and Xavier Mosquet, managing director and senior partner Detroit for Boston Consulting Group; the Fred A. and Barbara M. Erb Family Foundation and its Chairman John Erb and his wife Debbie, founding chair of the funder; Artspace; Marjorie and Maxwell Jospey Foundation; the Michigan Council for Arts and Cultural Affairs and National Endowment for the Arts. Financial support for DPT has also come from Detroit natives working nationally, including Academy Award nominated actor Tom Hulce, who played Mozart in the movie “Amadeus.”

Detroit School of Arts graduate Celia Keenan Bolger, who won a Tony for best actress for her role as Scout in the Broadway production of “To Kill a Mockingbird” and serves on DPT’s campaign committee and advisory board, has provided financial support and performed at DPT’s annual gala fundraiser. Cass Tech graduate Ella Joyce, an NAACP Image Award winning actor who starred in the TV series “Roc”, returned home to star in Morisseau’s “Skeleton Crew” during DPT’s third season. “We’ve worked with some very notable playwrights and actors who’ve come to Detroit because they believe in the theater and this city,” Winkler said. “All of these tentacles of Detroit artists, many of whom are Detroit high school graduates, have created a real network of people who want to invest in … theater being made in this city.” Contact: swelch@crain.com; (313) 446-1694; @SherriWelch

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

CONSTRUCTION

HEALTH CARE

HEALTHCARE / INSURANCE

LAW

NONPROFITS

Central Conveyor

Ascension Michigan

Brieden Consulting Group

Jaffe Raitt Heuer & Weiss, P.C.

First Tee - Greater Detroit

Central Conveyor Company (CCC), a member of the Tsubaki Group, is pleased to announce the addition of Curt Towne as Vice President. Curt will oversee all Estimating, Project Management, Sales and Marketing. He brings 37 years of experience in the Automotive Industry with him that will be a tremendous asset as CCC continues to successfully move forward through 2021 and beyond.

Ascension Michigan has named Michael Bousamra, MD, chief of thoracic surgery in SE Michigan and will be responsible for the development and implementation of a comprehensive lung cancer program focusing on early detection. Dr. Bousamra has 28 years of experience as a thoracic surgeon with clinical expertise in minimally invasive surgery for lung cancer. He is a graduate of U-M Medical School and a member of the American Association for Thoracic Surgery and the Society of Thoracic Surgeons.

Brieden Consulting Group, a leading employee benefit management company and culture consulting firm, has announced the addition of Maggie Machado as an Account Coordinator, also known as “Master of Multitasking”. Maggie will be taking on a dynamic role, primarily assisting with client relations and education. Hans Brieden, President of BCG, stated, “Maggie brings a fresh perspective to our account management team and will further amplify the client-centric approach for which we are known.”

Lauren Edelman Willens joins Jaffe Raitt Heuer & Weiss, P.C. as Of Counsel to the Intellectual Property & Information Technology practice group. She has extensive experience counseling clients on the use and enforcement of trademarks, as well as advising on worldwide brand development, domestic and international trademark clearance and prosecution, trademark due diligence and licensing. She has represented clients in a wide range of industries, from pharmaceuticals to software and automotive.

First Tee – Greater Detroit, an initiative of The Children’s Foundation, announced that Donna Joseph-Kemp, President of DMJ Group, LLC, joined the organization as a member of the Board of Directors. Kemp has been immersed in integrated marketing with major corporations and philanthropic organizations nationwide for 35 years as well within her own business, DMJ Group. Kemp’s background includes partnerships with PGA, brand identity for major corporations and the automotive industry nationwide.

HEALTH CARE

Zane Hammoud, MD, joined AMG Cardiothoracic Surgical Associates in SE Michigan. He is board certified in thoracic surgery with over 20 years of experience in noncardiac diseases of the chest using minimally invasive and robotic techniques. Dr. Hammoud has performed more than 200 robotic esophagectomies. He is a Fellow of the American College of Surgeons and the College of Chest Physicians and graduated from Wayne State University School of Medicine, where he currently is a Professor of Surgery.

18 | CRAIN’S DETROIT BUSINESS | JULY 12, 2021

HEALTHCARE

Kelley Cawthorne Kelley Cawthorne, a bi-partisan government relations firm with offices in Detroit and Lansing, is pleased to announce health law attorney Carrie Linderoth as a partner at the firm. Linderoth founded Kelley Cawthorne’s healthcare regulatory practice in 2010 and is known as one of Lansing’s premier industry lobbyists, specializing in mergers and acquisitions, federal healthcare reform, information technology, Michigan’s Medicaid budget and the Certificate of Need program.

REAL ESTATE

INSURANCE / BROKERAGE

Hylant

Century Partners

Hylant has named Doug Abraham Vice President of Business Development for southeast Michigan. In this role, Doug is responsible for driving strategic opportunities and partnerships with organizations in the middle and large markets. With over 28 years of delivering solutions for clients, Doug will be an excellent addition to Hylant’s team.

Century Partners, a Detroit-based development group, has appointed Jonathan Holloway as Director of Development. Holloway will be responsible for the growth of Century Partners’ multifamily portfolio, execution of Century’s value-add capital strategy, and development of operations strategies. Jonathan will also oversee expansion into new asset classes and the build-out of Century’s hospitality practice. He joins after more than a decade working in New York City residential and hospitality real estate.

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C O N TA C T

Ascension Michigan

Laura Picariello Reprints Sales Manager lpicariello@crain.com (732) 723-0569

WORKFORCE

labor market. “Health care was ahead of the curve with pay for a long time and From Page 3 were using that pay to improve workBut McDonald’s announced in ers and patient flow,” Shehata said. May it would raise the minimum “That was fine two years ago. Now wage for all restaurant employees to they are running into competition $15 an hour and upward of $17 per from all these other industries and hour for some entry-level employ- those additional requirements and ees. Target and Walmart have al- licensure have put overall market ready raised minimum wages to $15 pressure on the base rate (of pay).” Scott said the result is not only a an hour across their thousands of draining of medical assistant candiU.S. locations. And many fast food chains have dates but also increased turnover at been offering large signing bonuses, health centers, which typically pay including a recent $400 signing bo- less than larger health systems. “Health centers are increasingly nus at the Wendy’s on Wixom Road in Wixom. Many chain retail and asking them to work at the top of restaurant companies are also offer- their skill and training but as cheaply ing tuition reimbursement toward as possible,” Scott said. “That kind of economics is just not out as work“WE HAVEN’T SEEN ANYTHING QUITE panning ers can just walk out and make more at LIKE THE SITUATION WE HAVE health system down TODAY.” the street or even a — Daniel Zhao, labor economist, Glassdoor fast food restaurant or retail store.” A record 4 million people quit an associate’s or bachelor’s degree. Ash Shehata, principal and U.S. their jobs in April alone, according to leader for the health care and life sci- the Labor Department. “We haven’t seen anything quite ences practice at advisory firm KPMG, said the health care industry like the situation we have today,” has spent 20 years instituting stricter Daniel Zhao, a labor economist with licensing requirements on its work- the jobs site Glassdoor, told NPR last force in an attempt to improve pa- week. Gianna Ferrarotti, vice president tient care but that has also made it harder to find workers in the tight of talent management and organiza-

tional effectiveness at Beaumont, confirmed worker turnover is a problem in the system. “We’ve seen about a 20 percent increase in openings since the onset of the pandemic,” Ferrarotti said. “It’s a really competitive market.”

Gathering carrots Beaumont instituted a $15 minimum hourly wage at the end of last year and is offering signing, retention and referral bonuses as a way to combat the problem, Ferrarotti said. The health system is also increasingly relying on temporary workers from agencies. Bob Riney, president of hospital operations and COO for Henry Ford Health System, said shortages are not only impacting medical assistants but also in housekeeping, labs, pharmacy and surgery technicians and even registered nurses. Between June 2020 and May 2021, open positions were up 19 percent at Henry Ford. “We believe there will be a two- or three-year period where supply and demand will not be evenly matched for us,” Riney said. “There’s no question we’re facing a challenge. We are looking for individuals that are drawn to the mission of health care. The good news is that while the pandemic did increase and accelerate early retirement of individuals that

were quite frankly people who were exhausted, but we feel the supply chain will be filled up again because people have realized the importance of health care during the pandemic.” In the meantime, Henry Ford is reevaluating its wages and working to create more flexibility in roles to appease current and potential workers, Riney said. Henry Ford increased its minimum wage to $15 per hour last October, immediately affecting 3,000 employees. Mercy Health and Saint Joseph Mercy Health System, which together comprise the Michigan region of Trinity Health, also raised its minimum wage to $15 per hour in 2020. The health system is also using recruiting firms to find lower-skilled workers anywhere in the U.S., an expenditure Henry Ford typically reserved for finding physicians and nursing specialists. “We’re casting a wider net,” Riney said. “There’s no reason for roles like these we can’t attract individuals from other communities and other states. People look to relocate for a lot of reasons, so we want to find those people. Historically we have reserved that for higher-level roles, but we’re now expanding that to medical assistants and other classifications.” Shehata agrees this is likely a short-term problem for the industry

and other industries. While they are raising rates and paying more for labor today, most health systems will look to streamline operations and invest in technology to reduce those labor costs. “We’re going to see heavy digitization,” Shehata said. “The idea that health care has to leverage automation to improve patient experience and improve the workflow is sort of a third rail that’s as much about this labor shortage issue.” The Economic Alliance of Michigan, which represents employers, including General Motors Co., Ford Motor Co., Lear Corp. and others to advocate for higher quality and controlled pricing in health care, is also urging the industry to streamline operations instead of increasing hiring. “Health care costs continue to rise and the industry never sees a contraction,” said Bret Jackson, president of the nonprofit whose members provide health insurance to 900,000 Michiganders. “As the rest of the state’s industries shrink, health care keeps growing. We just keep pumping money into an inefficient system and more workers won’t solve that. Without a new way of doing business, the industry is headed for a bubble and all these workers they are hiring will be laid off.” Contact: dwalsh@crain.com; (313) 446-6042; @dustinpwalsh

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UBS to open downtown Detroit office By Annalise Frank

October 30, 2017 | crainsdetroit.com

• UBS plans to open wealth management office in Detroit in mid-2018 • Office to include 6,000-squarefoot space30,nonprofits and civic October 2017 | crainsdetroit.com

UBS to open downtown Detroit office By Annalise Frank

UBS to open downtown Detroit office foot space nonprofits and civic

town Detroit in mid-2018, the company Annalise Frank growing groups meByand my peers up, andcan use free of charge announced Monday. • Bedrock-ownedUBS buildings Group AG’s U.S. and Canadian UBSan plans to open wealth this•was opportunity toundergoing make a renovations wealth management business, New Jer-

management office in Detroit

sey-based Wealth Management change I wish an adult UBScould plans to open an office UBS in downin that mid-2018 Americas, to lease 13,000 square town Detroit in mid-2018, theplans company • Office to include 6,000-squarefeet on the connected sixth floors of have made for me.” announced Monday. foot space nonprofits and civic

UBS will lease 13,000 feet from Bedrock LLC starting around mid-2018 in two buildings: the Grinnell Building (center left) at 1515 Woodward Ave. and the Sanders Building (center right) at 1529

Bedrock LLC

buildings at 1515 Wood- Woodward Ave. Group AG’sneighboring U.S. and Canadian groups can use free UBS of charge ward Ave. and Fourteen metro Detroit employees don’t really have adequate resources wealth management business, New 1529 Jer- Woodward Ave. • Bedrock-owned buildings The twoManagement buildings built around 1900 are will move to the downtown office to or adequate office space to host dosey-based UBS Wealth undergoing renovations by Detroit-based will lease LLC 13,000 feet from Bedrock LLC starting around mid-2018 buildings: Grin- meetings or things nor events the or board start, but the office has the capacity toin two Americas, plans toowned lease 13,000 square UBSBedrock nell Building (center at 1515 Woodward andnew the Sanders Buildingalong (centerthose right) at 1529 Bush said. and are undergoing said left) lines,” hold another six toAve. eight staff memon in the connected sixth floors of renovations, Reprinted with permission from Crain’s Detroit Business. © 2019 Crain Communications Inc. All RightsUBS reserved. plans to open anfeet office downAve. for bers, Bush said. It will act as an extension John Bush, 60, WoodMichiganWoodward market head UBS’s investment in the new ofneighboring buildings at 1515 Further duplication without permission is prohibited. Visit www.crainsdetroit.com. #CD1134 town Detroit in mid-2018, the company UBS Wealth ManagementFourteen Americas.metro of fice will resources be “significant,” he said, as its the other wealth management offices. don’t really have adequate Detroit employees announced Monday. ward Ave. and 1529 Woodward Ave. “The real impetus open ato new The twoCanadian buildings built around 1900 arefor us “uniqueness Bush is based theadequate Birmingham office space to hostcomes do- at a price.” He said willto move the downtown office out to ofor UBS Group AG’s U.S. and office inBedrock Detroit is to support what’s owned by Detroit-based LLC he could or not yet provide an estimate but travels to to the others and will meetings nor events or board things start, but the goofficeoffice, has the capacity wealth management business, New Jering renovations, on in the city,” saidhold Bush, a Detroit and are undergoing said on the be spending in thealong Detroit branch. those lines,” Bush said.cost of the build-out, as some another six to eight new stafftime memsey-based UBS Wealth Management nativemarket who grew City. “We John Bush, 60, Michigan headup forin Garden have yet The location have a UBS’s investment in the new of- to be finalized. said. will act asDetroit an extension fromBush Bedrock LLCItstarting around mid-2018 in twowill buildings: theless Grin- contracts Americas, plans to lease 13,000 square UBS will lease 13,000 feetbers, UBS Wealth Management Americas. really felt like we wantedofto have a physfice will be “significant,” hecompany said, as its the other wealth management offices. The plans to start its buildtraditional, more “urban” feelright) than 1515 Woodward Ave. and the Sanders Building (center atthe 1529 feet on the connected sixth floors of nell Building (center left) at “The real impetus for us to open new ical presence downtown to reinforce “uniqueness comes at a price.” saidnext year, depending Bush is based outothers, of the he Birmingham out processHe early said. New York-based architecAve. a neighboring buildings office at 1515 Wood- toWoodward in Detroit is our support go-particular vision what’s for this areatravels and toture he will could not yet an estimate office, but the firm others and will Cale on when renovations on the buildings Verderame design the provide ward Ave. and 1529 ing Woodward don’t really have adequate resources Fourteen metro Detroit employees on in theAve. city,”tosaid Bush, a Detroit reinforce our on Barton the cost of the build-out, as some be spending time inspace; the Detroit branch. are complete. Southfield-based Malow The two buildings builtnative around 1900 areup in adequate office space to have host dowill moveCity. to to the officelocation to or will who grew Garden “Wedowntown commitment contracts finalized. The Detroit have aon less based in Switzerland, employs Co. has signed as general contractor.yet to beUBS, owned by Detroit-based Bedrock nor events or board or things start, the office has the capacity really felt likeLLC we wanted tobut have a physThe company plans to start its buildtraditional, moreto“urban” than the outmeetings the city.” 60,000 across 54 countries. About 34 UBS feel plans to rent about half of the and are undergoing renovations, along those lines,” Bush said. early next year, depending hold six to eight new he staff memical presencesaid downtown toWealth reinforce others, said. New office York-based architecUBS another — 6,000 square out feetprocess — at no cost percent of them work in the AmeriJohn Bush, 60, Michiganour market head UBS’s investment the renovations new of- on the buildings bers, said. It will act an extension vision for for thisMparticular onin when tureasfirm Verderameto Cale will design theother a n aBush g e marea e n tand cas, according to a news release. UBS nonprofits and organizations, UBS Wealth Management will beMalow “significant,” he said, as its of the other also wealth management offices. ficeBarton to Americas. reinforce our Americas are be complete. space; Southfield-based Bush said. The space will called UBS Wealth Management Americas em“The real impetus for commitment us to open a new “uniqueness comes at a price.” He said is based thehas Birmingham to has Bush based signed on as Woodward general contractor. metro De- out ofCo. ploys 280employs in Michigan, 225 of whom Gallery. Its UBS, design and in artSwitzerland, office in Detroit is to support what’s go- office, but travels to theUBS heabout couldhalf not an estimate others and the city.” 60,000 across 54 countries. 34 Detroit. plans towill rent will out of yet the provide troit offices in are basedAbout in metro aim to showcase Detroit’s history ing on in the city,” said Bush, a Detroit on the cost the build-out, asthem somework in the Amerispending Detroit branch. UBS Wealth B be percent office — 6,000 square at noofcost irm i n g h a time m , in the The wealth management business andfeet a— hub-and-spoke layout ofwill renative who grew up in Garden City. contracts have yet tocas, be finalized. Manag e m“We e n t Troy, have a and less other The Detroit locationtowill according to a news release. UBS nonprofits organizations, Farmington recorded operating income of $2.13 flect the city’s road system. really felt like we wanted to have a physAmericas also Hills, The plans to startManagement its buildtraditional, more “urban” Wealth Americas em- quarter of 2017 — a Bushfeel said.than The the space will becompany called Plymouth in the third “Some of theUBS organizations that op- billion ical presence downtown reinforce has tometro De- others, he said. New York-based outdesign process early year,280 depending architecploys in Michigan, 225 of whom Woodward Gallery. Its and art next John Bush and Dearborn. erate and provide services in the city 7 percent increase over last year. our vision for this particular area and troit offices in ture firm Verderame Cale when renovations on the buildings the on based in metro Detroit. will will aimdesign to showcase Detroit’s history are to reinforce our B i r m i n g h a m , space; Southfield-based complete. Malow arelayout The wealth management business andBarton a hub-and-spoke will reReprinted with permission from Crain’s Detroit Business. © 2019 Crain Communications Inc. All Rights reserved. commitment to Troy, Farmington Co. has signed on as general UBS, basedis prohibited. in Switzerland, employs income recorded operating contractor. flectFurther the city’s road without system. duplication permission Visit www.crainsdetroit.com. #CD936of $2.13 Hills, Plymouth the city.” billion in About the third “Somehalf of the organizations that op60,000 across 54 countries. 34quarter of 2017 — a UBS plans to rent out about of the John Bush and Dearborn. UBS Wealth 7 percent and provide city work percentinofthe them in theincrease Ameri-over last year. office — 6,000 squareerate feet — at no cost services Management to nonprofits and other organizations, cas, according to a news release. UBS Reprinted with permission from Crain’s Crain Communications Inc. All Rights reserved. Americas also Wealth Management Americas emBush said. The space will be Detroit calledBusiness. UBS © 2019 Further duplication without permission is prohibited. Visit www.crainsdetroit.com. #CD936 has metro DeWoodward Gallery. Its design and art ploys 280 in Michigan, 225 of whom troit offices in will aim to showcase Detroit’s history are based in metro Detroit. Birmingham, The wealth management business and a hub-and-spoke layout will reCRAINSDETROIT.COM I MARCH 9, 2020 I Troy, Farmington recorded operating income of $2.13 flect the city’s road system. Hills, Plymouth THE CONVERSATION “Some of the organizations that op- billion in the third quarter of 2017 — a John Bush and Dearborn. erate and provide services in the city 7 percent increase over last year.

ZONED M-1 INDUSTRIAL

Albert Berriz talks workforce housing, Ann Arbor and Cuba

Reprinted with permission from Crain’s Detroit Business. © 2019 Crain Communications Inc. All Rights reserved. | BY KIRK PINHO Further duplication without permission is prohibited. Visit www.crainsdetroit.com. #CD936

MCKINLEY INC.: Ann Arbor-based real estate company McKinley Inc. saw the writing on the wall for its retail portfolio a few years ago and cut bait, turning its focus primarily to its large crop of tens of thousands of workforce housing units across the country. One of the people at the helm of that decision was Albert Berriz, CEO and managing member, who came to America as a young boy fleeing Cuba and now steers a large company with a portfolio valued at more than $4 billion. `Crain’s Detroit Business: Can you talk a little bit about how the McKinley portfolio began and where it’s at today? Berriz: McKinley started in 1968 in Ann Arbor, and it was founded by (former U.S.) Ambassador Ron Weiser. It started in the student housing business and eventually transitioned into more traditional multifamily housing, and in addition to that, office and retail, as well. Today, we’re primarily a workforce housing multifamily operator. We have essentially disposed of our retail and office assets in an effort to really focus on multifamily and also focus on an asset class that I think is more in line with our current goal, which is to have a generational multifamily real estate enterprise and a pool of assets that really are long term in nature. ` Explain workforce housing versus affordable housing. We’re not in luxury housing. Our residents are working. They’re going to wake up tomorrow morning and go to work. Our average rents are, for example, in Washtenaw County, about $1,100 to $1,200 or in Orange County, or Seminole County, Florida, $1,400 or $1,500. So these are affordable rents. And the difference between us and affordable housing is our buildings are not subsidized. They’re all market rate, and they’re all privately owned. The owners are not receiving any form of subsidy, nor are the residents. However, if you wanted to sort of assess residents and low-income housing tax credit deals compared to ours, they’re probably not too dissimilar, the median incomes. The McKinley residents in, let’s say, Washtenaw County, when you look at the numbers are probably not going to be too much different than what you would see in a traditional LIHTC deal. But again, our buildings, the primary differences, our buildings are market rate and they’re not subsidized any way.

`I don’t think it’s overblown to use the word “crisis” for Ann Arbor’s affordable housing situation. Give us your perspective on how the city should go about addressing it. I think it’s a supply issue. The reality is that Ann Arbor has not really welcomed solutions from the private sector and has only sought solutions from the public housing side or the community nonprofit side. And both of those groups, while I think they’re very well intentioned, don’t have the capital and the expertise to resolve the problem at the scale it’s needed. To put it in perspective, you know, the Washtenaw County study that came out had a need of about 3,000 units. And if you look at the cost per unit today, and let’s say $250,000 or $300,000 per unit to build a brand new unit today, you know, it’s an $800 million to a $1 billion problem, so I don’t think that’s a problem that gets resolved on the public side or on the community nonprofit side. You know, they have to go to places to seek capital and there just isn’t enough capital, nor do they have enough resources or expertise to resolve the problems. So the city I think, by and large, has attempted to do this in those ways because they really haven’t welcomed the private side. And there is a lot of expertise and there’s a lot of capital that could do this, from the private side perspective. It just hasn’t been the way that Ann Arbor operates, so you see what has happened in Ann Arbor year over year, decade over decade is there’s a lot of conversations about affordable housing, but there’s no solutions. `You were talking a little bit earlier about how McKinley got out of retail and office. What led to that decision and how has that reflected or shaped your business strategy? It was a risk profile that we were just not comfortable with. We are a generational business and so we look at our assets in

a way that we never expect to sell them. We expect to invest in them so they last for long term, and we just couldn’t see that on retail. We saw a significant degradation of our rent rolls. We had buildings that were, let’s say, 70 percent to 80 percent investment-grade credit tenant composition and then we saw that we saw that quickly degrade. We just didn’t see a place where we could really have an asset class retail that would last for the long run. And then office in many ways, the same way. The way people are shopping and the way people are occupying offices today, the risk profile is very different than it was, let’s say, when we were making those investments 20 and 30 years ago, so for us, it was the right move. It’s paid off because, had we held many of the assets today, they would be significantly compromised. I think they would be worth a lot less. We started those sales about six years ago, and we sold a lot of that early on, so we sold them still at a time they were being valued significantly more than they would be worth today, in our opinion. And we sold some big buildings. I mean, these weren’t small buildings. We sold a 1 millionsquare-foot shopping center, for example, in Norfolk, Va., which is one of the largest power centers in the state of Virginia. So these weren’t small assets. So they were important for us to move them out at the right time, and for people that thought that was there was a good upside for them, so we actually sold them at good prices, and certainly we couldn’t have sold them at those prices today.

trajectory was to where you are today in terms of the head of McKinley. I left (Cuba) compliments of Fidel Castro in early 1959 because of the Cuban Revolution. We had to flee. It was survival to leave the country at the time and my parents relocated to Miami. We were fortunate for that. We’re fortunate to have left alive, fortunate to have resettled in what is without question the greatest country on the planet. I was not born here. I was born in Havana and I emigrated as a Cuban refugee just before I was 4 years old with my parents. `What consumes your day outside of the office? My wife and I walk. We like to boat, so those are the two things. In our summers we live at Saugatuck, and it’s a great place to live. We’d live there year-round, but it’s a little too cold in the winter.

`Can you give thumbnail sketch of coming here and what your

Albert Berriz, CEO and managing member, McKinley Inc.

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hroughout Dandridge Floyd’s careers — whether as a social worker, attorney or assistant superintendent of Oakland Schools — making change has always been a center point. When United Way pitched a framework to Oakland Schools for a countywide breakfast program to address poor nutrition as a way to improve academic achievement, Floyd — who experienced food insecurity growing up — knew firsthand the powerful impact it could have. To secure the needed funds, Floyd led a team that earned support from all 28 local districts to finance the program — despite the fact that a majority of them would see no benefit. “The local districts were phenomenal,” Floyd said. “The biggest surprise was how quickly it happened. Education is a democratic system and democracy can be very slow, but this happened in six to seven months. That showed how committed people were to making sure the students of Oakland County have everything they need to be successful.” In a county where over 7,000 children suffer from hunger, and only two in five eligible students access a school breakfast, Floyd said a common misperception is that “Oakland County is rich.” “That makes this program all the more important, because if that is the bias or the thought process people have about Oakland County, then these kids would have never gotten help.” In a groundbreaking public/nonprofit partnership between the Oakland County Board of Commissioners, Oakland Schools and United Way, Oakland County is Better with Breakfast was born. “I’m impacting lives now,” Floyd said. “I know the effect food insecurity had on me and my peers growing up, and this was an opportunity to make a change that I wish an adult could have made for me.” — Laura Cassar

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“There’s a track at the core, and (there is) the rest that we can be,” he said. “I had this feeling that there was more opportunity here than what was potentially being considered in terms of the kind of businesses and services that you can provide. It’s basically a product-market fit — what does the market really need from you?” The electric, autonomous future of the auto industry has turned out to be further down the road than experts predicted back in 2018 when the state proclaimed the ACM as ground zero for the future of autonomous vehicles. It’s a future that’s yet to be realized, with researchers now looking out a decade or more for fully driverless cars in urban settings. At the same time, startups and legacy automakers are racing to develop new technology, and the methods of testing it are rapidly changing. That’s perhaps the biggest threat to the ACM. It now faces competition from public roads, including in Michigan, that have been approved for driverless vehicle testing. “I think the market has changed drastically,” said Trevor Pawl, chief mobility officer for the state. “As the technology is being developed faster by more people and more companies around the world, it’s skipping that testing component. … What role does the testing center actually play? We think it plays a massive role, and it can prevent things like what happened with some of the Tesla accidents that we’ve seen where people have lost their lives.”

Up to speed Ensuring that the ACM is part of the future it hopes to enable requires financial stability. Under Sarkar’s watch, that has meant driving up revenue by lowering rental costs and experimenting with new revenue streams for growth. According to Sarkar, the ACM is expected to hit a break-even point within the next year after tripling track usage since the fall. “We’re on a trajectory to being sustainable,” he said. “There was a lot of investment that came into ACM to

WORK-BASED

From Page 3

the region — in Westland, Royal Oak and Brownstown — for its growing workforce as part of a pilot program. The company contracts San Francisco-based Crossover Health to provide those services and has 17 operations total in Michigan, California, Texas, Arizona and Kentucky. There, employees pay a $45-$55 fee to see a physician, depending on whether they are enrolled in Amazon’s heath plan. The fee covers the visit, any services provided, blood work and any basic prescriptions. Amazon’s health centers also provide mental health and physical therapy services. Those services are also available to worker dependents. The three facilities staff 12 board-certified physicians, six therapists and a physical therapist. Jay Edward, practice manager for Crossover Health’s Detroit Amazon clinics, said the sites were created to allow Amazon employees quick access to health care. Employees can make same day or next day appointments and waiting room times are limited to five minutes or less. 20 | CRAIN’S DETROIT BUSINESS | JULY 12, 2021

VSI Labs AV Solutions Engineer Mayura Gunarathne of Minneapolis works on a vehicle with automated features at The American Center for Mobility in Ypsilanti. | NIC ANTAYA/ SPECIAL TO CRAIN’S DETROIT BUSINESS

build it out. Now the track is coming up to speed in terms of running as a business.” Added Dawn Thompson, director of strategy, marketing and programs for the ACM: “We were sort of ahead of the curve in building ACM, and now it’s catching up to the technologies.” The center is run by a nonprofit in tandem with the Michigan Department of Transportation, the Michigan Economic Development Corp., the University of Michigan, Ann Arbor’s Spark business accelerator and Ypsilanti Township. The state invested $60 million to buy the Willow Run site and help redevelop it. After a “listening tour” with stakeholders, one of Sarkar’s first moves was to revamp the pricing structure of the test track. The result was a surge in use. “There’s this belief that you have to charge more to generate more, and I’ve learned in a lot of places that actually, quite the opposite is true,” Sarkar said. “We went out and benchmarked ourselves, and I think we’re seeing the output of that right now.” Sarkar said the track is occupied nearly 75 percent of the time it is available and that the center plans to expand hours of operation to accommodate demand. He declined to disclose rental rates, citing competitive reasons. The closed track includes a host of

driving environments to replicate virtually any scenario found on the streets of the real world. Environments include a 2.5-mile highway loop with exit and entrance ramps and triple-decker bridges, a 700-foot curved tunnel, urban arterial road, six-lane boulevard, two-lane roundabout, urban canyon, a parking lot, sidewalks and bike lanes. It also has cybersecurity testing, a private 4G LTE cell network, Wi-Fi and 5.9 Ghz DSRC roadside units, technology that allows vehicles to communicate with the infrastructure. Another key aspect of Sarkar’s business plan is to dispel the misconception that the ACM is a members-only test track reserved for the big automakers. The OEMs may be self-contained and cagey about their testing, but many of the startups are eager for attention, and the ACM knows how to bring it. “We want to be more than a test track,” Sarkar said. “We want to be an ecosystem that brings you value, connections, networking, business opportunity. Small startups want exposure. They want to be able to walk around and meet new people and get new business.” That’s the case for Perrone Robotics Inc., a Virginia-based autonomous vehicle startup that began leasing a 1,200-square-foot garage at the ACM in late June. The company recently landed a $10 million investment from Flor-

Amazon’s workforce — approximately 8,000 full-time workers in metro Detroit — wasn’t utilizing the company’s health benefits as much as in other regions, said Derek Rubino, senior program manager of Amazon’s workplace health and safety special programs. “We hand out (health) benefits on day one of employment, but they weren’t widely being used,” Rubino said. “We have employees who work different shifts and hours that may be outside when a standard physician’s clinic is open. We viewed this as an opportunity to provide access to care in a really controllable way. We can bring (health care) to where to they work and live in a way that works for them. We can increase benefits usage by decreasing barriers.” Amazon’s three clinics are open from 7 a.m. to 11 p.m. Monday through Friday and 9 a.m. to 6 p.m. on Saturday and Sunday. Rubino said the region’s high rate of emergency room use was a catalyst for Amazon’s pilot program. According to Blue Cross Blue Shield of Michigan, 44 percent of the 672,000 ER visits its members made in 2016 were avoidable and the lack of primary care is the root cause. These visits are

also a major problem for employers, from a cost and productivity perspective. “Not only are ER visits more expensive (the average claim cost for each visit is $1,368), but they can also be lengthy, which potentially means lost time at work and lower productivity,” the Detroit-based health insurer said in a blog post. Rubino called these avoidable ER visits “a lose-lose for the employers and employees.” Tracy Watts, a senior partner for Mercer’s health care division, said improving productivity is the primary reason employers are opening primary care clinics. “If an employee needs to see a doctor, employers want it to happen as quickly as possible with the least amount of downtime as possible,” Watts said. “This is an effective way to streamline primary care for employees so they have little time away from work as possible, thus increasing productivity.” Pontiac-based United Wholesale Mortgage opened its on-site primary care clinic in October 2016 — one of the first in the region to do so. Its clinic, which is operated by Troy-based Salta Direct Primary Care and employs two

ida-based CapStone Holdings Inc., whose CEO, Keith Stone, is a graduate of and big-time donor to Eastern Michigan University. “Strategically, we think ACM is a very important partner to work with in this ecosystem,” said Chao Sun, regional investment director for CapStone Holdings. “The marriage between ACM and Perrone is just the beginning. In the future, we would love to see more research and work together with EMU, and work more with the private sector.” Sun said Perrone will take part this fall in the ACM’s demo days, when startups from around the Midwest and beyond convene to show off technology and share ideas. “Because (Perrone) is in Virginia, it is very rare they have the channel to meet the OEMs or the potential investor or potential customer, so we really value this platform,” he said.

Driving new revenue Marketing, business-to-business services and events are a growing source of the center’s revenue, though Sarkar declined to offer percentages. In April, officials signed a memorandum of understanding with Farmington Hills-based Humanetics, allowing the company to offer its safety test equipment to ACM customers. It entered an MOU earlier this year with Minneapolis-based VSI Labs to host a series of events at the ACM using VSI’s research vehicles. The ACM declined to offer financial details of those deals. Garage rentals are another revenue source — the campus has six 2,000-square-foot garages with veranda office space and seven 1,200-squarefoot garages — but after bringing in Perrone, capacity is full. The ACM does not disclose the names of tenants or clients, but its founding investors and users include Visteon Corp., Toyota Motor Corp., Ford Motor Co., Hyundai America Technical Center Inc. and AT&T. Other sponsors include Subaru of America Inc., Adient plc and Microsoft. One of the only unleased buildings left on the campus is a 15,000-squarefoot event space, which is likely to be claimed by an undisclosed tenant soon. An announcement is forthcoming. Also expected in the fall are more

details about the center’s expansion plan, set to potentially include new buildings on the campus, where 200 acres remain undeveloped. The center announced in January 2020 that it planned to begin building a tech park on the campus but separate from the ACM base, However, it recently scrapped those plans in favor of building from the base outward in a “one campus approach.” “Five years ago, it sounded like we needed a tech park,” Thompson said. “Now, we’re like wait a minute, do we really need a tech park, or do we need more garages, or a great big event space?” Growth is still a priority even as the center looks to hit its stride under a new CEO, following a lot of leadership turnover since its launch. “So, a lot of these places start off vision-centric, driven by a strong leader, and they have the vision, and they know what it’s going to be, and they need that momentum to charge forward,” Sarkar said. “And eventually you have to hit pause and think about it.” Sarkar thinks that ancillary parts of the business could eventually become part of the core, but that does not mean neglecting the track, he said. Since launch, the center has seen upwards of $200 million invested in new mobility innovations that include infrastructure, facilities, technologies, and equipment, according to the ACM. Sarkar sees the track at Willow Run playing a big role in the safe evolution of mobility for years to come. It allows for test scenarios that can’t happen safely on public roads, such as incorporating erratic maneuvers, scheduling controlled weather sessions, testing variable communications and connectivity levels, and validating interoperability between more than one manufacturer. The need for a controlled environment, he argues, will keep the ACM relevant even as tech companies try to streamline the validation process. Pawl agrees. “I think the capabilities, the 500 acres of multiple environments — urban, suburban, rural testing sites — all these different things I think have positioned ACM well to compete through 2030 and beyond,” he said. Contact: knagl@crain.com; (313) 446-0337; @kurt_nagl

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physicians and five physician assistants, sees about 27 percent of UWM’s 9,200 employees each month, or about 2,500 to 3,000 visits monthly, said Laura Lawson, UWM’s chief people officer. Employees pay a $10 fee per visit. But the clinic does not have a pharmacy or perform labs on site and is only available to team members, not dependents. The clinic is staffed from 8 a.m. to 8 p.m. with an available 24hour hotline. Lawson said with a median age of 32 years old, UWM’s staff doesn’t typi-

cally use primary care as often as older populations. Opening the clinic increased preventive care and allowed the mortgage wholesaler to more strategically manage its workforce. “Everyone used to come into work sick (before COVID-19) with a cold or flu or whatever,” Lawson said. “Now that person can easily see a doctor on site and get diagnosed and sent home, allowing us to prevent the spread. And we basically run a small city here with 9,200 employees. So whenever there is a slip and fall on ice in the parking lot

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HOME POINT

From Page 1

All told, Home Point has about 3,600 employees, with about 500 in Michigan, and that’s after a round of layoffs in recent weeks, which were first reported by industry publication Housing Wire. Home Point laid off about 10 percent of its workforce after ramping up hiring last year to handle the boom in mortgage refinances, which has slowed down this year as interest rates have ticked up and most consumers eligible for refinancing have already done so. Rocket Companies, the parent company of Rocket Mortgage, and UWM, by comparison have about 26,000 and 9,300 employees, respectively. Home Point’s mortgage originations last year, a record year for the sector, totaled $62 billion. Rocket and UWM had originations totaling $320 billion and $182.5 billion, respectively. Home Point makes for a “rising star” in the mortgage sector, according to Guy Cecala, president and CEO of Inside Mortgage Finance, an industry publication. Data from IMF had Home Point as the 15th-largest lender in the country last year, and among the fastest- growing. Rocket and UWM, meanwhile, were ranked numbers one and four, respectively, based on loan originations, according to the IMF data. Executives at Rocket, in particular, have long stressed that their company should be valued more as a financial technology company, rather than just as a consumer lender. Shoemaker, however, said Home Point — with its focus on being just a mortgage company — takes a different approach as it looks at its use of proprietary technology. “The field of technology is important. It’s just, we aren’t here to build the technology in the absence of being a mortgage lender,” said Shoemaker. “The whole goal of technology, as we see it, is to really make our people more efficient, and to provide a better experience and a better product to the partners and the customers we serve,” he continued. “So it plays a role, right, but we’re not a technology company first, we’re a mortgage company first.” Late last year, Home Point announced it had adopted a “low-code” technology platform, which the comor an asthma attack, we can address it.”

Spend now, save later? Employers are also looking to reduce health care spending through the use of primary care clinics. Health benefits are expected to rise 5.3 percent in 2021 to $14,769 per employee, an increase of $197 from last year, according to a recent survey of 122 large U.S. employers that pay benefits for 9 million people by Business Group on Health. Employers cover about 70 percent of that cost. For an employer the size of General Motors, that means health benefits would rise by more than $17 million this year for its 86,300 U.S. employees. That’s not even counting dependents. Rubino from Amazon said the pilot program hasn’t revealed any clear cost savings, but it’s too early in the program to accurately predict. “The cost savings is fairly long-term thing, but health is one of those winwin scenarios,” Rubino said. “An employee would rather be healthy. That benefit is really obvious from a company perspective. Increased employee satisfaction means they stay longer. If we can prevent longer-term costs by

pany said allows for faster loan processing, real-time visibility for monitoring processes, and improved data integrity and accessibility.

Taking stock The Ann Arbor lender was third in line of Southeast Michigan mortgage companies to go public in the last year, having its initial public offering on the morning of Jan. 29. Or, as Shoemaker called it with a laugh, “the worst possible time.” Despite strong earnings, investors and analysts have not yet been wooed by the emergence of Rocket, UWM and Home Point as public companies. Home Point’s IPO netted the company’s owners — largely made up of funds connected to Stone Point Capital LLC, a Connecticut private equity firm — about $94.25 million in proceeds. At its IPO price of $13 per share, the company was valued at $1.8 billion. Prior to the opening of markets last Friday morning, Home Point’s stock price stood at $5.49, giving the company a market value of $763.4 million. Shoemaker shrugs off that declining value, saying executives have no regrets and are thinking for the long term. “I think the broader ... investment community is just not really informed about how mortgage works, and the cycles around mortgage,” Shoemaker said. But mortgage companies going public at all shows times are good in the business, according to Cecala with Inside Mortgage Finance. For years after the housing bubble burst and the financial industry collapsed leading into the Great Recession, mortgage company IPOs were all but unheard of, said Cecala, noting that investors showed little interest in those types of companies after the implosion of Countrywide and other mortgage specialists in the crisis. And it’s still a period of wait-and-see for investors in mortgage companies. “Going into 2021 is kind of a reality check with investors, and the jury is out on whether these fast-growing, non-bank companies can thrive or do well in a diverse market,” said Cecala. “Can they do well with rising interest rates? Can they do well in a predominately home-purchase market as opposed to a refi market? We just don’t know. The jury is out on that.” catching things early, we can definitely save money. That’s the hope, at least.” Lawson from UWM said the cost savings have yet to pan out, calling the investment a break even. “We haven’t raised our employees’ contributions to match Blue Cross Blue Shield increases for the past five years, so when we see any savings it’s pretty minor,” Lawson said. “But we’re quarterbacking their care. We’re helping them simplify the complexities of health care and creating a better environment. This is really expensive. But so is health insurance. If we see cost savings along the way, it just grounds the importance of this clinic.” Watts said the cost savings will come as more and more companies turn to onsite or near site clinics or partner with offsite direct primary care providers. “Primary care always has been and will continue to be high value care,” Watts said. “The way people access it will continue to evolve. The more people that use it, the better the return on investment is. I don’t have any examples of anybody that is unhappy with this model.” Contact: dwalsh@crain.com; (313) 446-6042; @dustinpwalsh

Comparing metro Detroit’s Big 3 mortgage firms The rapidly growing Home Point has been making inroads in the competitive mortgage sector in recent years Home Point

Rocket Companies

United Wholesale Mortgate Corp.

REVENUE, 2020 $1.37 billion $15.7 billion $4.9 billion PROFIT, 2020 $607 million $9.4 billion $3.38 billion MORTGAGE ORIGINATIONS, 2020 $62 billion $320 billion $182.5 billion EMPLOYEE HEADCOUNT, 2021 3,600 26,000 9,300 SOURCE: COMPANIES

Changing times To Cecala’s point, a company like Home Point faces a host of unknowns. The refinance boom of 2020, which according to financial services data firm Black Knight Inc. helped to fuel more than 65 percent of last year’s record-setting $4.3 trillion in total loan originations, has begun to fade. So now, Home Point and its competitors must pivot more toward home purchase loans during a period of extremely constrained housing supply. Shoemaker, however, said the outlook remains positive as new homes come on the market in the coming years, leading to a period of “fairly prolonged demand” for housing, he said. Additionally, as a private equi-

ty-backed firm founded in 2015, Home Point faces the reality that at some point its investors will want to recoup that investment. Shoemaker acknowledged that reality, but said he believes the company is still early enough in the cycle that those conversations have not been broached. “It’s something that at some point, Home Point will most likely face, because ... the goal of private equity is not to hold things in perpetuity,” Shoemaker said. “But, what I will say is I think we’ve been successful enough thus far that a lot of those pressures are fairly mitigated.” A message left with a representative from Stone Point seeking comment on any exit plans was not returned last week. Home Point also finds itself as a

newer, smaller player within the industry, and among its rival firms located in its own backyard. Those two companies, Rocket and UWM, are famously competitive, and that competition spilled into plain sight earlier this past year when Mat Ishbia, the CEO of UWM, issued an ultimatum to brokers saying that if they wanted to continue doing business with his company, they had to halt doing any deals with Rocket and the smaller Fairway Independent Mortgage Corp. based in Wisconsin. As that battle was raging in March, Home Point CEO Willie Newman said that it created an opening. “So what we’re basically hearing from the broker cohort is that, by and large, they’re looking for another large source,” Newman told analysts during a March 11 earnings call. “And there’s a lot of concern about not having the level of choice that they’ve come to appreciate, I guess, prior to the announcement (by Ishbia),” Newman continued. “So I think for us that certainly is a positive. We feel like we’re very well positioned to be that next choice if it does turn out that they only have one of the two largest other lenders to work with.” Asked by Crain’s about recent interest from the broker community, Shoemaker said he was unable to provide any specific numbers, citing a quiet period ahead of upcoming quarterly earnings. However, he said the company has continued to receive inquiries from brokers around the country. Cecala with Inside Mortgage Finance told Crain’s last week that the competition between those two larger companies does likely position a company like Home Point for growth, despite less brand recognition. “I guess if I’m Home Point, I’d just as soon see (Rocket) and United Wholesale slug it out and ignore me,” he said. Contact: nmanes@crain.com; (313) 446-1626; @nickrmanes

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COLLEGE OF BUSINESS JULY 12, 2021 | CRAIN’S DETROIT BUSINESS | 21

THE CONVERSATION

Detroit small-business liaison on balancing the new and the old DETROIT ECONOMIC GROWTH CORP.: Pierre Batton, executive vice president of small business services for the DEGC, also runs a public-private coalition formed to help small- and medium-size business owners respond to the COVID-19 pandemic. It’s called Detroit Means Business, and it’s begun expanding its focus, working toward being a support system tackling wider equity problems like accessing capital, getting lucrative contracts and building online presence. Batton talked with Crain’s about challenges Detroit businesses face, what the DEGC does to help them, the Motor City Match program and how he got to Detroit from California. | BY ANNALISE FRANK ` So, a new-ish part of your job is leading Detroit Means Business, which started out with private companies coming together and is housed under the DEGC. Could you describe what sort of real, substantial change you want to make with Detroit Means Business? We are really guided by what we call our 10 North Star goals. We identified this during the pandemic with feedback from 60-plus small business support organizations, foundations, business owners ... They are some big, hairy audacious goals. I mean we are looking at investing $250 million of affordable capital in the form of grants, loans and incentives to small businesses. We’re specifically targeting 90 percent going to businesses led by Black people and business owners of color. We’re talking about getting $2 billion of new contracts awarded to Detroit businesses ... we’re talking about helping 5,000 businesses increase revenue at least 50 percent over their pre-COVID baseline. ` What’s a challenge for small businesses that can sometimes be overlooked? The extremely limited amount of time a small or micro-business owner has. While there are a plethora of resources that are available, business owners, rightfully so, have to run their business so when you are communicating to small business owners, don’t bury the lede. A very long-winded email, you’ve lost them. What we’ve really tried to be intentional about with Detroit Means Business is short and sweet. How can we get this information right in front of folks ... ` Over the pandemic the DEGC doled out grants and worked with small businesses. Do you have an

example, or an anecdote, of a challenge a business faced or something they triumphed over? I think with the grant funds and the services we were able to provide ... we received a lot of really great shout-outs from business owners. Whether it was letters of support and so, you know, Henry the Hatter (in Eastern Market), they sent us a letter saying thanks and saying this is going to make a really big impact. And that’s a Detroit icon. So that was very empowering for us ... ` Did you grow up around here, or if not, how did you come to be in Detroit? I was a West Coast kid born and raised in Long Beach, Calif. I moved to Detroit in 2010. My mother was born in Detroit, grew up in Detroit and Port Huron. And so I actually moved out this way because my parents retired in Michigan. When I completed undergrad I was looking for a great city to launch my career and also at that time, my mother had just contracted breast cancer. I packed up everything, moved out this way, and I’ve been here, just enjoying it, living it up since. My mother is in remission for breast cancer so that worked itself out and this is home now. ` You got your master’s in urban planning. What led you to that study? I was working for the state of Michigan, and I oversaw the mobile Secretary of State office. So, as somebody new to the state that was now driving around every single part of the state, I saw a lot of, from the urban settings to the rural settings, communities that were just in need of redevelopment ... and I think that really led me and inspired me to want to learn more about what we could do

of the program and critical Office of Inspector General report. Where are you in that process now?

to, you know, not just bring Detroit back but how do we also bring back some of these smaller cities. That pushed me to go to (University of Michigan) to obtain my master’s in urban planning with a specialization in social finance.

We are very hopeful that we will be selected to continue as the vendor of the Motor City Match program. ... We’ve seen over 130 businesses open in formerly vacant and blighted commercial storefronts, we’ve seen over 300 home and e-commercebased businesses that have launched because of the program ... we’re hopeful we’re going to hear something in the next one to two weeks on this.

` In terms of balancing helping existing businesses and helping new businesses launch, do you ever hear concerns about that balance from existing businesses? How do you feel that is going? I think the last decade there has definitely been a great focus on new businesses and startups. I think Detroit has especially got a lot of incredible coverage talking about a lot of our new businesses that are coming online. And I think for us and our work in terms of moving forward, something we are very conscious about at Detroit Means Business is how we plug in existing businesses into our small business ecosystem and resources.

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Pierre Batton, executive director, Detroit Means Business, and executive vice president of small business services, Detroit Economic Growth Corp.

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RUMBLINGS

Gage Cannabis strikes deal with rapper Wiz Khalifa DETROIT-BASED GAGE GROWTH CORP., also known as Gage Cannabis, has joined forces with multiplatinum-selling, Grammy-nominated rapper Wiz Khalifa’s cannabis brand, Khalifa Kush, in an exclusive partnership, Gage announced Wednesday. As part of the arrangement, Gage will be the exclusive producer and retailer of Khalifa Kush-branded products in the company’s home state of Michigan, subject to regulatory approval. The initial term of the license agreement is five years. Both companies will create a product line of Khalifa Kush cannabis products that includes flower, pre-rolls, extracts and concentrates, to be sold at Gage provisioning centers or dispensaries. Khalifa Kush “will consult on cultivation, distribution, branding, con22 | CRAIN’S DETROIT BUSINESS | JULY 12, 2021

Wiz Khalifa. | VIA WIZKHALIFA.COM

sumer engagement and other operating responsibilities,” according to a news release. “Wiz is a globally recognized cannabis connoisseur. KK has had incredible success in other U.S. cannabis markets, establishing a brand that is synonymous with ultra-premium quality,”

Fabian Monaco, CEO of Gage, said in a press statement. “We are confident that this partnership will allow Michigan to become a unique cannabis destination in the near future.” Gage, which started trading on the Canadian Securities Exchange in April, is one of Michigan’s leading can-

nabis brands and operators. The single-state retailer has opened eight dispensary locations in Ferndale, Adrian, Detroit, Lansing, Traverse City, Battle Creek, Kalamazoo and Grand Rapids, with more planned in Center Line, Saginaw and New Haven. The company projects it will have 20 or more open stores in total by the end of 2021. Khalifa Kush-branded products launched in 2015, and are available in Nevada, Arizona and Utah. Khalifa Kush’s partnership with Gage marks the cannabis brand’s first expansion into Michigan. Gage posted strong growth in the first quarter of 2021. The company generated $17.6 million in revenue, up 219 percent from the same time last year, the company reported in May.

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Limited-time offer; subject to change. Qualified new business customers only. Must not have subscribed to applicable services w/ in the last 30 days & have no outstanding obligation to Charter. *$49.99 Internet offer is for 12 mos when bundled w/ TV or Voice & incl. Spectrum Business Internet starting speeds.  Spectrum Business Internet Gig requires Spectrum Gig capable modem. Additional Installation fees apply. Speed based on download speed on wired connection. Wireless speed may vary. Available speeds may vary by address. Spectrum Internet modem is req'd & included in price. **$19.99 Voice offer is for 12 mos. when bundled with Internet & incl. one business phone line w/ unlimited local & long distance w/ in the U.S., Puerto Rico, & Canada plus 2,000 long-distance minutes to Mexico. Includes phone taxes, charges and fees. Other telephone services may have corresponding taxes and rates. ◊◊Wireless Internet Backup offer requires a subscription to Spectrum Business Internet, and Static IP or Business WiFi services. Supports up to 4 devices and includes download speed up to 10 Mbps, with 8-hour battery backup. LTE modem is required & included in price. Internet speeds may be limited when connected to the LTE Modem. Static IP and Business WiFi not supported when Wireless Internet Backup service is engaged. +Based on the most annual `Best Protection' AV-TEST awards, industry-leading advanced attacks detection capabilities confirmed by MITRE ATT&CK® evaluations, and 2020 Customers' Choice for Vulnerability Assessment in Gartner Peer Insights. °Speed claim based on internet speeds of competitors' current customers vs 200Mbps internet starting speed from Spectrum Business. §99.9% network reliability based on average HFC Availability, Jan 2019 - Feb 2021. Visit business.spectrum.com/network-reliability for details. ^Based on average savings with Spectrum Business promo rates vs. competitors' non-promo rates for Internet & 2 phone lines. Actual savings may vary. Services subject to all applicable service terms & conditions, which are subject to change. Services & promo. offers not avail. in all areas. Standard pricing applies after promo. period. Installation & other equipment, taxes & fees may apply. Restrictions apply. Call for details. © 2021 Charter Communications, Inc.

NO CONTRACTS, EVER.

WE WORK HARD TO EARN YOUR BUSINESS EVERY DAY. 

Fast Internet speeds from 200Mbps up to 1 Gbps



Keep your existing phone number and equipment



No data caps or speed throttling

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35+ business calling features

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Award-winning Desktop Security+

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24/7/365 U.S.-based customer support

200

99.9%

Mbps

NETWORK RELIABILITY§

200Mbps INTERNET

BUSINESS PHONE

99 + $ /mo. when bundled for 1 year*

/mo. per line when bundled with Internet for 1 year**

NO CONTRACTS. NO ADDED TAXES. NO HIDDEN FEES. Offer Good Through 08/31/21

Switch today and you could cut your Internet and Phone bill in half.^

CALL 888-845-4697 VISIT BUSINESS.SPECTRUM.COM SMB-GEN200-0705