Crain's Detroit Business, August 19, 2024

What would broader paid family leave cost?

yB David Eggert

LANSING — If a paid family and medical leave law is enacted in Michigan, it could cost employers and employees $1.3 billion to $1.6 billion a year initially and roughly double to between $2.5 billion and $3.2 billion within a decade, a statecommissioned analysis shows.

Contributions would be split, with businesses, public entities and nonpro ts paying 44% of the cost overall and workers 56% because employers with fewer than 25 employees would be exempt. eir employees would contribute a portion of their paycheck and be eligible for bene ts.

e state-funded study, dated July 30 and released Aug. 1, was done by Seattle-based actuarial consultant Milliman Inc. It was required under a 2023 budget law that allocated $200,000 for the report.

It looks at four program design options speci ed by the Michigan

Department of Labor and Economic Opportunity that are based on Senate Bill 332, Democraticsponsored legislation that would make Michigan the 14th state with a mandatory paid family and medical leave law.

Gov. Gretchen Whitmer last summer called for passage of such a requirement but did not detail a proposal. e bill has not gotten a hearing amid pushback from the business community.

The measure would require up to 15 weeks of paid family medical leave annually, capped at 65% of the state average weekly wage. Federal law provides certain employees with up to 12 weeks of unpaid leave per year.

member with a serious health condition would be in addition to the ve days of paid sick time currently mandated for employers with at least 50 workers.

( e Michigan Supreme Court last month invalidated the existing sick leave law and ordered the reinstatement of one

“For small businesses to have an employee gone for that long and to have to hold that position open, it’s not doable.”

Amanda Fisher, Michigan director of the National Federation of Independent Business

Long-term paid leave for things like childbirth, a medical issue and the care of a family

that will require employers with one or more employees to provide up to nine days of paid time o — ve days paid and four days unpaid if they have fewer than 10 workers.)

See LEAVE on Page 15

Feds aim to sell bar owned by ex-CFO in embezzlement case

yB Kirk Pinho

e South eld restaurant and bar owned by the former Detroit Riverfront Conservancy CFO charged with embezzling from the nonpro t may be sold.

Federal court lings Aug. 8 say U.S. Marshals can enter Duo Restaurant & Lounge — owned by William Smith, who is accused of embezzling $40 million from the conservancy between 2012 and 2024 — to inspect, photograph and appraise the restaurant for an eventual sale that would have to be approved by the court.

Duo, located in the La Mirage Shopping Center at 29555 Northwestern Highway, has been shuttered since roughly May, around the time suspicions about Smith’s alleged activity became public but before the U.S. Department of Justice charged him with one count of bank and wire fraud, a possible 20-year felony.

It was an unexpected ending for the popular nightclub, restaurant and bar that people familiar with it described in June as regularly busy.

An email was sent to Smith’s attorneys, Gerald Evelyn and Robert Higbee, on Aug. 8 seeking comment.

e court ling says prosecutors and Smith have a “mutual goal of agreeing to a sale of Duo Restaurant and Lounge under stipulated terms to be approved by the court.” e sale of the restaurant and other properties Smith accumulated over the course of his alleged embezzlement could help recoup some of the money feds accuse him of stealing from the conservancy.

Tony Curtis, who owns the South eld strip mall where Duo leases its space, said Aug. 8 that he has an attorney who has been in touch with the Justice Department, but Curtis said he hadn’t spoken to him “in a few days” on the matter. Curtis also

is an owner of Rochester Hillsbased Papa Joe’s Gourmet Market & Catering LLC.

Smith was charged in early June, with federal prosecutors alleging he used some $14.9 million in conservancy funds to pay personal American Express credit card bills and transferred another $24.4 million to a company he owned, e Joseph Group & Associates LLC. He also allegedly took out a $5 million Citizens Bank loan on behalf of the conservancy but not authorized by the nonpro t.

Later in June, it was revealed in federal court lings that Smith had been attempting to sell o assets purchased during his alleged embezzlement, ranging from a home in Georgia, a condo in Mexico and a yacht. He also accumulated a small real estate portfolio in Detroit including single-family homes, land and commercial buildings.

Last month, the conservancy also sued Smith and alleged that his mother, wife and sister were co-conspirators in the yearslong scheme. Also last month, Invest Detroit, which made loans to Smith so he could redevelop an East Woodbridge Street property into a cigar bar, said it may foreclose on the property after Smith failed to start construction.

How a dry cleaner became an in-demand restoration franchise

yB Elizabeth Schanz

A growing franchise business with roots as a metro Detroit dry cleaner has changed with the times into a global company focused on restoring damaged personal items, often by weatherrelated instances.

Certi ed Restoration Drycleaning Network, which has its home o ce in Berkley, provides full home contents restoration services for items including clothing and other textiles, electronics, art and collectibles commonly involved in disasters like oods, res or storms. It has found success in

helping clients save key items, as well as those with emotional meaning and value, rather than them ending up in a land ll.

CRDN has cultivated a business model drawing from the textile restoration that dry cleaners specialize in to develop a network of franchises that provide extensive services for home insurance claims.

Wayne Wudyka, founder and CEO of CRDN, said he came into the world of textile restoration “accidentally” when a customer came into his dry cleaning business — Huntington Cleaners —  with clothes damaged by smoke

from a house re. At that point, Huntington Cleaners, which Wudyka purchased in 1992, had focused mainly on retail services.

However, after realizing the success he had with that project he decided to expand the cleaner’s services to “recession-proof” his business.

“We had all the tools as a dry cleaner to help somebody who had experienced a loss in their home,” Wudyka said. “So for the next nine years straight, we just built our Huntington Cleaners business out very rapidly.”

Duo Restaurant & Lounge in South eld is owned by William Smith, former chief nancial of cer of the Detroit Riverfront Conservancy, who is accused of embezzling $40 million or more from the organization over a dozen years. KIRK PINHO

UNSPLASH

Gilbert’s new Cadillac Square development may be pushed back

The development e ort formerly known as the Monroe Blocks project at Cadillac Square in downtown Detroit is likely to be delayed again.

Dan Gilbert’s Bedrock LLC is expected to ask for what a Detroit Economic Growth Corp. spokesperson called a “short extension” to kick o construction on the project’s rst phase that, under terms of an agreement with the Downtown Development Authority, is required to start Sept. 1.  e spokesperson was not aware of when Bedrock is requesting an extension until; more details are expected later this month during a DDA meeting in which the board is expected to consider granting the extension.

In an emailed statement Aug. 13, Ko Bonner, Bedrock’s CEO, also described the requested extension as “short” but would not say how long it is.  e project — now referred to as e Development on Cadillac Square — has been long in the making, going through multiple incarnations and designs.

e most recent vision for the 3.66-acre site includes 250-280 residential units, down from 482 originally conceived; about 400,000 square feet of o ce space, a reduction from 857,000 square feet in the previous version; 90,000 square feet of retail, restaurant and market hall space, which could include a new downtown grocery store; and a 2,000-seat concert venue with about 60,000 square feet that involves a repurposed National eatre façade. Between 1,500 and 1,800 parking spaces are also planned. e concert venue is being managed by TVG Hospitality. e company was started by Ben Lovett, a member of the British rock band Mumford and Sons, and his brother, Greg Lovett. e company operates four other concert venues across the country and three in London. e company secured a $50 million funding round in February 2022 to expand in the U.S. and United Kingdom, Music Week reported at the time.

Work on the Monroe Blocks site halted within months of a December 2018 groundbreaking ceremony on what was then an $830 million project that was to feature a 35-story o ce tower, a 17-story residential tower and other uses in

a total of 1.4 million square feet across a series of buildings.

At the time, Bedrock executives said the developer was navigating complex terrain with multiple high-pro le building projects such as the development on the J.L. Hudson’s department store site, the Book Tower and Book Building and an addition to One Campus Martius. e rst phase of the Monroe Blocks project, consisting of the National eatre project and market hall components, was to begin by Sept. 1.

It’s not known if the pending Bedrock extension will also bump back the required deadlines to start other phases of the project.

e second phase, with residential, retail and parking, is to begin by Oct. 1, 2026; and the third phase, consisting of parking, retail and o ce space, is to begin by Jan. 1, 2028.

A handful of buildings that had previously occupied the property have been razed in the last year or so.

e majority of the Albert Kahn-designed National eatre

was razed early this year, the Detroit Free Press reported, although its facade has been preserved with the expectation that it will be incorporated into the concert venue.  e project is one of four Gilbert projects that received a $618.1 million transformational browneld incentive in May 2018. e other three were the redevelopment of the Book Tower and Book Building; an addition to the One Campus Martius building; and the Hudson’s Detroit project on the former site of the J.L. Hudson’s department store.

Joe Louis Arena garage gets a new owner in $30M deal

yB Kirk Pinho

e former Joe Louis Arena parking garage traded hands in late May for $30 million after its previous owner defaulted on a land contract.

e Detroit Regional Conven-

tion Facility Authority, which runs the Huntington Place convention center, bought the roughly 3,000-space deck at 900 W. Je erson Ave. from an entity tied to Detroit-based developer and landlord e Sterling Group, according to online city property sale and land records.

e DRCFA board unanimously signed o on the purchase May 23, according to meeting minutes. Building a new ve-story parking deck was also under consideration, board subcommittee agendas re ect, although precisely where is not known. e property sits across from where a new nearly $400 million convention center-style hotel is being constructed.

“ e DRCFA purchase of the Joe Louis Arena garage was the most cost-e ective solution to creating additional parking for the Huntington Place expansion, hotel project and other projects in the area,” Claude Molinari, chairman of the DRCFA board, said in an emailed statement on Aug. 9. “Purchasing and upgrading the existing JLA garage will save signi cant taxpayer dollars versus alternative approaches such as new construction.”

Sterling Group had sold the deck in 2021 to Grosse Pointe Farms-based Foster Financial Co. in a land contract deal, but a judgment recorded in Wayne County shows that the property went into forfeiture last year.

e judgment says less than half of the purchase price had been paid. e 36th District Court in

3,000-spot

Detroit found that Foster Financial had an outstanding balance of about $27.2 million, including principal and interest.

Emails and voice mails seeking comment were sent to Sterling Group; Foster Financial; and Sterling Group’s attorneys on the case from Detroit-based Barris, Sott, Denn & Driker PLLC on Aug. 9.

e deck sits across from Sterling Group’s multi-tower development on the old Joe Louis Arena site, which was demolished after the Detroit Red Wings moved to Little Caesars Arena.

e site has become home to new residents and, in the coming years, is set to add a large hotel.

Sterling Group has built a

roughly 500-unit, 25-story market-rate apartment tower called e Residences at Water Square that opened earlier this year and has started construction on a 25-story, 600-room JW Marriott Detroit Water Square that is expected to open in 2027 by the time the city plays host to the NCAA Men’s Final Four basketball tournament.

Foster Financial picked up the garage in March 2021 in a $36 million land contract deal not long after it, along with a joint-venture partner, bought the 28-story 211 West Fort o ce tower in October 2020 at the height of the COVID-19 pandemic.

Foster Financial said on its website at the time of the deck purchase that it planned to do millions of dollars in renovations, including new LED lighting, electric vehicle charging stations, a car wash facility, dry cleaning pickup and drop-o services plus a shuttle.

e company is now out of both of those deals.

e Grosse Pointe family o ce Tribus LLC bought Foster Financial out of its ownership of 211 West Fort in October 2023. On its website, Foster Financial says it sold its interest for ve times the amount of equity it put in.

Kirk Pinho

The site of the proposed project on Cadillac Square in downtown Detroit | HERNZ LAGUERRE JR.

The

Joe Louis Arena parking deck at 900 W. Jefferson Ave. | KIRK PINHO

Project DIAMOnD: A transformative impact on small manufacturers

Pioneering the next era of manufacturing with 3D printing

WHAT IT IS.

Project DIAMOnD—which stands for Distributed, Independent, Agile Manufacturing on Demand—is an initiative powered by Automation Alley and funded by Oakland County, Michigan, that provides 3D printers and additive manufacturing training to small manufacturers, empowering them with the digital tools to reduce costs, increase production e ciency and scale their businesses.

As the economy was slowly adapting to the shi in Industry 4.0 capabilities we decided to accelerate the process by integrating intelligent digital technologies into manufacturing and industrial processes.

“3D printing isn’t just for prototyping. We can make real parts. Being able to make a replacement component within a few hours…that’s critical.”

– Xavier Fajardo, President, Accufacture (Project DIAMOnD participant)

Project DIAMOnD is the epitome of a digital- rst mindset in manufacturing. It stands as a testament to our commitment to sustainability, transforming traditional supply chains and marketplace business models.

By distributing state-of-the-art 3D printers to traditional manufacturers

in a secure and scalable ecosystem, Project DIAMOnD is fostering a culture of innovation and creating the world’s largest network of 3D printers.

WHERE WE ARE.

As we transition into phase two of awarding companies with 3D printers and personalized training, a digital transformation is underway, including the ability to rapidly prototype, enjoy greater design freedom and customize products like never before. Companies in the network have bene ted from reduced lead times, enhanced cost e ciency and unparalleled material versatility.

“Without Project DIAMOnD and the equipment, it would have been a lot longer process. I’ve never seen a product launch like this one has launched.” – Brian Smith, Director of Engineering, ADAPT Technology (Project DIAMOnD participant)

Project DIAMOnD o ers access to large-scale production without the need for capital expenditure, increasing competitiveness in the market. Companies also leverage digital inventory and spare parts, protect their original designs and proprietary IP, and appreciate the low barrier to entry.

REGIONAL AND NATIONAL SUPPORT.

Michigan Governor Gretchen Whitmer recently announced at the Mackinac Policy Conference a landmark commitment by Oakland, Wayne and Macomb counties to expand Project DIAMOnD. is move marks a signi cant step towards realizing Whitmer’s vision of building the “Infrastructure for Innovation,” a statewide initiative designed to boost Michigan’s economic growth and technological leadership. With a rm belief in the transformative power of innovation, Whitmer articulated a vision where shared technological resources like 3D printers are accessible to small businesses across Michigan. By expanding Project DIAMOnD, Whitmer aims to create an environment where businesses can thrive, compete globally and drive economic growth.

e US Center for Advanced Manufacturing located in Troy, Michigan, is a champion organization in support of Project DIAMOnD as they share a similar vision and mission—to strengthen the manufacturing landscape. e US Center works towards this goal through initiatives that promote advanced manufacturing locally and

nationwide. ey are also the rst US entity to partner with the World Economic Forum to help advance its global manufacturing initiatives. e next generation of manufacturing is here.

Cost e ciency 3D printing can be more coste ective compared to traditional manufacturing processes, especially for low-volume production and complex parts.

More from prototyping to actual production e technology allows for faster development of prototypes, speeding up the overall design process and moving to production faster.

Greater design freedom 3D printing allows for the production of parts and products with complex geometries that would be di cult or impossible to create with traditional manufacturing methods.

Competitiveness and resiliency

It o ers the ability to compete with larger manufacturers by providing unique services or products that may not be able to deliver.

Reduced lead times

without needing molds or tools can signi cantly decrease production times.

Access to production at scale without the capex investment Companies can use the Project DIAMOnD Network to execute recipes without the capex investment.

Images represent 3D printing capabilities of the Project DIAMOnD network.

Innovative transit pilot a smart experiment

It looks humble enough — four Ford E-Transit vans circling a loop from Corktown to the southwest of downtown Detroit to the Icon on the East Riverfront.

But a pilot program for this east-west shuttle that launched Aug. 13 and is planned to become self-driving in coming months, o ers some encouraging signs for a region that’s working to create transit of the future.

Detroit has seen its share of grand transit plans that didn’t pan out or that struggled to meet expectations. But there’s a lot to like in this new test, which is dubbed e Connect.

ese autonomous shuttles promise to be nimble and cost-e ective, a way of experimenting with novel transportation options without spending hundreds of millions of dollars.

It’s not trying to solve every transit problem in the city; instead, it’s focusing on a high-tra c corridor where it’s not hard to see demand for a reliable, predictable shuttle running every 10-15 minutes.

It’s also not hard to see how demand might outstrip capacity. e vans are operating a single route, but it hits many high-tra c spots, connecting places that include Michigan Central, the Coleman A. Young Municipal Center, and Campus Martius.

If riders nd they like the service and there are more of them than the small eet of vans can handle, scaling up frequency would appear to be simple. Running every 10-15 minutes during peak hours is frequent enough to turn casual users into regulars. A website lets users track the location of every van on the loop.

COMMENTARY

Certainly, a cohesive and coordinated regional transit system should still be metro Detroit’s goal, one that has been elusive as grand plans have run up against political realities.

But smaller experiments like these can help point the way to what a practical system could look like — beyond pipe dreams of xed-rail lines that would re-

quire billions of dollars.

Sure, four vans might not sound like much. But remember, this is a pilot. It’s about testing the waters, gathering data, and seeing how people respond. If it takes o — and there are plenty of reasons to think it might — the pilot could be straightforwardly replicated on other routes. e real win here is the willingness to experiment in a smart way. It’s using technology not just for the sake of it, but to solve real problems in smart ways.

It’s also another example of how the private and public sectors can work together to solve issues. Michigan Central and Bedrock (which both have stops on the route) kicked in money to pay for the pilot, along with the state of Michigan.

As outlined in our Crain’s Forum section last month, there have been a series of small wins for transit backers in the past couple of years, and some encouraging signs for the future even in the absence of a truly regional master plan. is test adds to the list.

Will e Connect revolutionize Detroit transit overnight? Obviously not. But it’s a step in the right direction. It’s exible, data-driven, and focused on solving speci c transit gaps. We are hopeful it can be a model for future experimentation and innovation.

Higher education a vital economic force across Michigan

College is on my mind quite a bit these days.

My daughter is headed o to school this fall, and my son has been making campus visits in recent weeks.

Meanwhile, I had the privilege last month of moderating a conversation with the presidents of the University of Michigan, Michigan State and Wayne State at a Crain’s Power Breakfast in Detroit. A packed room at the Westin Book Cadillac heard from the presidents, all of them relatively new in their positions, on how their institutions are having impact, particularly in Southeast Michigan.

Ciokajlo is executive editor of Crain’s Detroit Business and Crain’s Grand Rapids Business.

Next month, I will host a similar conversation in Grand Rapids with the presidents of Grand Valley State, Ferris State and Grand Rapids Community College. All of them are engaged in major projects and partnerships vital to West Michigan and beyond.

While colleges and universities are centers for scholarship and academic growth, they are also major land holders, contractors and employers. ey amount to some of the state’s largest businesses, every bit as important to their communities as Ford to Dearborn, or Dow to Midland or Kellogg to Battle Creek.

UM and MSU, the state’s two largest universities, rightfully attract a lot of at-

tention. Combined, they enroll more than 100,000 students, employ tens of thousands of workers and generate billions of dollars in revenue each year. ey are also tremendous brands that recruit students from across the country and globe to Michigan.

While UM and MSU are often the short-hand reference for the state’s universities, dozens of colleges, including community colleges, dot the landscape and play essential roles in the civic and economic life of communities, from Southeast Michigan to the western Upper Peninsula.

Last year, I wrote about how schools like Michigan, Michigan State and Grand Valley are driving major projects in cities like Detroit and Grand Rapids. at’s certainly true with core-city developments such as UM’s Center for Innovation, MSU’s Health Sciences Research Center and GVSU’s Center for Talent, Technology and Transformation. But colleges have a crucial impact on smaller towns across the state, too. Places like Hillsdale, Alma and Olivet spring to mind. In Kalamazoo, where I live, it’s hard to imagine what the community would look like if Western Michigan University, Kalamazoo College and Kalamazoo Valley Community College were to vanish.

ere’s a lot of talk these days of the looming “enrollment cli ,” when the number of college-age students is expected to drop o , largely as a result of years-long declining birth rates. In the state of Michigan, where our struggle with population stagnation is well-documented, many of the regional institutions, such as WMU, Central Michigan and Eastern Michigan have already been hard hit.

I sometimes hear people say that Michigan has too many public universities with 15. Maybe. But which one would you close? (Good luck with that).

Like a business facing a major a challenge, the universities must plan strategically, be creative and nimble, and demonstrate their relevance. e presidents I

spoke to last month appear up to the task and I look forward to hearing from west side leaders in September. eir success is critical. Study after study shows higher education pays o . Whether it’s a certi cate for a skilled-trade program or a bachelor’s degree, continuing education translates to higher lifetime earnings.

Yet many students and their parents today question the escalating expenses, a reasonable concern. While on balance I believe the investment in education is worth it, the universities need to keep proving their case to recruit new students. Attracting them will be good for the long-term futures of those young people — and for the communities they serve.

Mickey

An electric Ford van and charging station used by The Connect, which is offering rides on a route from Corktown to the East Riverfront in a two-year pilot project. | ELIZABETH SCHANZ

Grand Valley State University’s Pew campus in downtown Grand Rapids | PROVIDED

Aerostar takes off: Mighty Michigan manufacturer expands in India

Growing reach with precision and innovation in engineering components

Nestled in the heart of Michigan’s industrial hub stands Aerostar Manufacturing, a testament to American innovation and a strategic approach to the globalized marketplace of engineered components.

Beginning as a small machining company in Michigan, Aerostar is strategically expanding its global network while reinforcing and solidifying its presence in Michigan. e company is experiencing impressive growth and positioning itself as a global supplier of highprecision engineering components to OEMs and Tier1s.

Aerostar’s story begins deeply rooted in Michigan, a state with a rich history in manufacturing excellence. e company leverages the experienced manufacturing workforce at its disposal, employs a talented leadership team and bene ts from the state’s robust infrastructure. is local foundation provides a solid springboard for Aerostar’s global ambitions.

e company operates as a onestop shop for complex engineered components, catering to a diverse clientele across industries like automotive, electric vehicle, heavy truck, agriculture, aerospace, HVAC, telecommunications, and power generation, amongst many others. e company recently began producing fully assembled battery trays for the robust electric bus and truck industry. ere is no limit to its engineering and manufacturing capabilities, from supplying components for engines, transmissions and chassis for the automotive industry to large castings weighing over 10,000 pounds each for industrial-scale compressors. Its precision machined castings and forgings, gears, and stamped and fabricated assemblies are used in pumps, brake systems, air transfer sub-assemblies, transmissions and sub-assemblies for ICE engines for all mobility vehicles. Aerostar also produces critical safety components for many industrial verticals including automotive, EVs, agriculture and elevators; currently producing braking equipment that grips the elevation cables in the event of a malfunction.

Aerostar’s domestic manufacturing facilities coupled with a global network of partner manufacturing facilities, strategically placed in India and other countries, allow it to o er competitive pricing, reduced lead times and a wider range of manufacturing capabilities. is approach embraces the “increasing interconnectedness” in global manufacturing.

Parts and Components produced by Aerostar, Romulus HQ adds new Building(3) expanding production and warehousing, Aerostar team photo.

Aerostar recognizes the value of its Michigan base, and recent investments in the state highlight this commitment. In 2023, Aerostar announced a brand new 55,000-square-foot facility in Romulus, Michigan. is expansion, with a total capital investment of $8.6 million, is expected to create many new jobs. Governor Gretchen Whitmer hailed the project as a “win for southeast Michigan and for the entire state”.

Senior Vice President, Robert Johnson who has been with the company since 2008 has seen Aerostar’s exponential growth rsthand. “Aerostar

demonstrated by the development of a robust leadership team and the expansion of its Account and Program Management Teams. e Aerostar team has developed very robust processes that are customdesigned for its needs. ese strategic enhancements ensure that Aerostar maintains the highest standards of quality and program management, providing unparalleled service to its customers.

Merging globally with local manufacturing and services, Aerostar’s success hinges on strategically leveraging each aspect to maximize its competitive edge.

Aerostar recognizes the value of its Michigan base, and recent investments in the state highlight this commitment.

Manufacturing continues to grow, and we are excited to announce the expansion of our global footprint, a signi cant step towards enhancing our capability to meet the growing demands of our customers,” he said. is expansion includes new stateof-the-art manufacturing facilities to ensure seamless operations.

To optimize its supply chain, Aerostar has continued to develop its advanced Just-In-Time (JIT) warehousing and inventory management systems in Romulus. ese innovations not only streamline their processes but also enhance Aerostar’s ability to deliver precision products with e ciency. Its commitment to excellence is further

Aerostar’s international facilities o er cost-competitive solutions to their clients. is is particularly relevant in today’s globalized market, where price is o en a key factor in purchasing decisions. Additionally, having manufacturing plants and warehouses strategically located around the world reduces lead times for overseas clients.

e key to Aerostar’s success lies in the way its global network and Michigan base operate in tandem. e international facilities complement the Michigan operations, not replace them. is symbiotic relationship allows Aerostar to o er a wider range of services, cater to a diverse clientele, and maintain a high level of quality

and innovation. While Aerostar always strives to provide its US customers with competitive pricingwhether it manufactures a part in its plant in Michigan or a partner facility in India - its customers always interact with its US-based sales, engineering and quality professionals. is focus on innovation positions Aerostar as the leader in complex engineered components. As the manufacturing landscape evolves, Aerostar’s ability to adapt and leverage its strengths will undoubtedly propel it toward continued success.

Aerostar’s CEO, Lalit Goel sees India as a great manufacturing partner for the US companies as businesses look to diversify their sourcing of engineering components away from China.

Goel has been instrumental in building its strategy toward expanding in India. He came to the US from India in 1987 as a master’s student and stayed to live the American dream.

“Our growing manufacturing footprint in India and India’s emergence as a ‘China Plus One’ option presents a compelling opportunity for US companies to diversify their supply chains. However, we remain dedicated to our domestic footprint as well,” said Goel.

Aerostar’s commitment to quality and customer satisfaction has fueled a remarkable period of growth. In the past four years, it has more than doubled in sales, a testament to the trust and reliance its customers have placed on it. “ is achievement

wouldn’t be possible without a dedication to exceeding expectations, lowering costs and building longlasting partnerships. We’re grateful for the opportunity to serve our customers and look forward to continuing this journey of mutual success,” said Goel.

Christina Day-Kane

Christina has worked within the industrial community for over 25 years, determined to help small manufacturing companies reach their potential. She has helped hundreds of business owners utilize new channels to discover vertical markets, new product and service capabilities, and achieve overall growth within their businesses.

Detroit’s fastest-growing companies in 2024

By | Rachelle Damico, Sonya Hill and Michael Lee

There's one thing unmistakable on Crain's 2024 Fast 50 list of fastestgrowing companies: The electric vehicle investment boom has meant boom times for an array of metro Detroit companies.

Leading the way are the industrial construction contractors who are building battery and assembly plants. All of the top three companies in the Fast 50 and nearly half of the top 20 are directly doing contractor or manufacturing work tied to that massive shift to EVs, fueled by a rush of government dollars and investment by the automotive industry.

A word on how we calculate this list, which differs from similar lists that look purely at a percentage revenue increase.

Our list takes that into account, but

1. WALBRIDGE

Top executives: Michael Haller, CEO; John Rakolta III, president 2023 revenue: $5.95 billion

2020 revenue: $1.91 billion

3-year % increase: 211.3%

3-year $ increase: $4.04 billion

Commercial and industrial construction contractor Walbridge’s revenue has more than tripled over the past three years, driven by two booms. A big one is the construction push tied to the conversion of the automotive industry to electric vehicles, especially a push to build battery factories in the U.S. It has also seen growth in its data center business that’s resulted from the continued expansion of cloud computing and the massive wave of investment in cloud computing. The Detroit-based company says it has seen continued growth from its foundational customers in manufacturing, automotive, defense, higher education, health care and government. In addition, the company's recent revenue growth is driven by the evolution of technology in battery cell vehicle manufacturing. The expansion of the cloud and the launch of AI is fueling growth for its data center business.

we also rank the companies for which we have data by the dollar amount of their revenue increase. This is because in our estimation, scale matters, and driving big sales increases at a large, established company is no easy feat.

So we rank each of the companies in our database from 2020 to 2023 on their percentage revenue increase, as well as ranking them on the dollar increase. We add up those rankings to produce the nal list. Companies that do well on both scales do best.

In addition, bear in mind that the starting point of the comparison is 2020 revenue, re ecting business during the beginning of the COVID-19 pandemic and the shutdowns and slowdowns that accompanied it.

2. BARTON MALOW HOLDINGS LLC

Top executive: Ryan Maibach, president and CEO

2023 revenue: $6.48 billion

2020 revenue: $2.34 billion

3-year % increase: 177.2%

3-year $ increase: $4.14 billion

Barton Malow has diversified its portfolio, with growth stemming from both existing and new markets. In 2019, Barton Malow earned its first lithium-ion battery cell manufacturing plant job, and the investment race to build EV battery factories has spurred business in Tennessee, Kentucky, Michigan and Ontario, Canada. The holding company continues to see growth from its strategic entity expansion in 2020, when Barton Malow restructured from one entity to a family of companies. The entities include Barton Malow Co.; its industrial division, Barton Malow Builders; its commercial and institutional division, Barton Malow Holdings, where its core services live; and LiftBuild, its engineering technology division. The entity restructuring allowed the company to grow into different market niches.

Construction at the Walbridge site for Ford’s BlueOval City in Stanton, Tenn., in March 2023 PROVIDED

A Barton Malow beam at the Hudson’s Detroit topping

| PROVIDED

LaFontaine Automotive Group | PROVIDED McNaugton-McKay Electric Co. has seen growth across many of its end markets. | PROVIDED

Commercial Contracting Corp.’s growth has been driven by automotive EV investments. | PROVIDED

3. COMMERCIAL CONTRACTING CORP.

Top executive: Steve Fragnoli, president and CEO

2023 revenue: $1.04 billion

2020 revenue: $390.8 million

3-year % increase: 164.9%

3-year $ increase: $644.4 million

Commercial Contracting Corp.'s growth has been driven by the automotive industry's electric vehicle investments and diversification into growing construction markets. The company has expanded its geographic reach and increased its services to include concrete, steel, carpentry, rigging and millwright trades, and construction of clean rooms.

4. MCNAUGHTON-MCKAY ELECTRIC CO.

Top executives: Donald Slominski Jr., executive chairman; Mark Borin, CEO 2023 revenue: $2.81 billion

2020 revenue: $1.34 billion

3-year % increase: 110.8%

3-year $ increase: $1.48 billion

Wholesale electrical supplier McNaughton-McKay has seen growth across many of its end markets, driven in part by the macro trend of electrification. The Madison Heightsbased company has maintained steady growth while expanding its reach within those markets.

5. LAFONTAINE AUTOMOTIVE GROUP

Top executive: Ryan LaFontaine, CEO 2023 revenue: $2.61 billion

2020 revenue: $1.24 billion

3-year % increase: 110.3%

3-year $ increase: $1.37 billion

Several factors have driven growth for LaFontaine Automotive Group, including repeat business, investment in staff training programs, strategic acquisitions, as well as attracting and retaining talent that's motivated to contribute to the company's success. By acquiring new dealerships, the group has expanded market presence, diversified its portfolio and tapped into new customer bases. The automotive group also expanded its geographic footprint.

6. DAKKOTA INTEGRATED SYSTEMS LLC

Top executives: Aaron Rivers, CEO; Andra Rush, chairwoman

2023 revenue: $1.07 billion

2020 revenue: $455 million

3-year % increase: 135.8%

3-year $ increase: $618 million

Brighton-based Dakkota has continued to see growth from opening new facilities, diversifying its portfolio and securing new business to build complex assemblies. In 2022, Dakkota expanded its manufacturing footprint by opening an instrument panel assembly plant in Detroit at the former Kettering High School site. The plant spans approximately 300,000 square feet.

7. REDICO

Top executive: Dale Watchowski, president and CEO

2023 revenue: $455.9 million

2020 revenue: $122.1 million

3-year % increase: 273.4%

3-year $ increase: $333.8 million

Redico has seen increased revenues through organic growth, new developments and acquisitions. During the period, American House Senior Living, a signi cant senior housing af liate in Redico's portfolio, showed an increase in revenue of 50 percent.

8. MOTOR CITY ELECTRIC CO.

Top executive: Dale Wieczorek, chairman, president and CEO

2023 revenue: $801.3 million

2020 revenue: $341.4 million

3-year % increase: 134.7%

3-year $ increase: $459.9 million

Growth from projects for the Detroitbased electrical contractor includes hotels, buildings, new electric vehicles, retooling of automotive plants and new battery manufacturing facilities. Renewable energy projects have also contributed to growth, including wind farms, solar energy and energy storage facilities.

9. THE IDEAL GROUP

Top executive: Linzie Venegas, president; Frank Venegas Jr., chairman

2023 revenue: $605.5 million

2020 revenue: $237.5 million

3-year % increase: 154.9%

3-year $ increase: $368 million

Revenue growth over all the Ideal companies from 2020-2023 has been driven by post-pandemic spending in the industrial sector, said CFO Matt Hickey. "We have many clients who have invested in their manufacturing facilities that has resulted in strong results over all our businesses.”

10. CHAMPION HOMES INC.

Top executive: Mark J. Yost, president, CEO and director

2023 revenue: $2.61 billion

2020 revenue: $1.37 billion

3-year % increase: 90.3%

3-year $ increase: $1.24 billion

Manufacturing footprint expansions and acquisitions have contributed to growth for the manufactured-home building company. In 2022, Skyline Champion Corp. acquired Manis Custom Builders Inc., which operated a manufacturing facility and retail sales center in North Carolina. The acquisition expanded its manufacturing footprint and allowed the company to further streamline its product offerings. The company recently changed its name to

11. GOLDFISH SWIM SCHOOL FRANCHISING LLC

Top executives: Andrew McCuiston, president; Chris McCuiston, CEO and co-founder

2023 revenue: $316.1 million

2020 revenue: $85.1 million

3-year % increase: 271.6%

3-year $ increase: $231.1 million Goldfish continues to expand across the United States. The company has increased its footprint by building additional schools in new markets and has grown enrollment in its swim and water safety lessons. Between 20202023, 64 Goldfish Swim School locations opened across North America. Since opening its first franchised location in 2009, the brand has grown to more than 170 schools in 35 states, with more than 150 in development. Last year, Goldfish taught more than 10 million swim lessons, which continues to grow each year.

12. CARHARTT INC.

Top executives: Mark Valade, executive chairman; Linda Hubbard, president and CEO

2023 revenue: $1.94 billion

2020 revenue: $1.08 billion

3-year % increase: 79.3%

3-year $ increase: $857 million

Carhartt's business and the stylishness of its workwear brand has remained strong over the past several years.

From 2020-2023, the company has experienced growth across each of its business units, including wholesale, direct-to-consumer, and Carhartt Company Gear, which offers a range of customizable attire and accessories. The company also strategically expanded its wholesale, retail and distribution networks.

13. APTIV PLC

Top executive: Kevin P. Clark, chairman, president and CEO

2023 revenue: $20.1 billion

2020 revenue: $13.1 billion

3-year % increase: 53.5%

3-year $ increase: $6.99 billion

New business awards and strategic acquisitions have contributed to the company's growth. Acquisitions include the 2022 purchase of Alameda, Calif.-based Wind River for $3.5 billion from San Francisco-based private equity investment rm TPG Capital. Wind River provides software that enables the secure development, deployment, operations and servicing of mission-critical intelligent systems.

14. PROGRESSIVE MECHANICAL INC.

Top executives: Randy E. Hosler, president; Charles J. Hosler, executive vice president

2023 revenue: $358.1 million

2020 revenue: $137 million

3-year % increase: 161.5%

3-year $ increase: $221.1 million

Progressive Mechanical has secured key projects that include the construction of electric vehicle plants and data centers. The company has also seen signi cant growth from securing repeat clients.

Champion Homes Inc.

Redico employees and a consultant visit Piquette Flats loft apartments in Detroit. | PROVIDED

New business awards and acquisitions contributed to Aptiv’s growth. PROVIDED

15. RPM

Top executive: Barry Spilman, founder and CEO

2023 revenue: $398 million

2020 revenue: $163.1 million

3-year % increase: 143.9%

3-year $ increase: $234.9 million

RPM attributes its growth to many factors, including crafting solutions speci c to customers' supply chain hurdles, using technology to scale operations and adapt quickly to market demands, as well as broadening its service offerings and geographic reach. The Royal Oak-based trucking and vehicle shipping company also broadened its client base and increased contract acquisitions. Additionally, the company credits prioritizing substantial investment in arti cial intelligence and machine learning technologies as another growth factor.

16. AGREE REALTY CORP.

Top executive: Joel Agree, president, CEO and director

2023 revenue: $537.5 million

2020 revenue: $248.6 million

3-year % increase: 116.2%

3-year $ increase: $288.9 million

Agree Realty’s growth stems from its three external growth platforms through which it acquires, develops and nances the development of high-quality retail assets for lease. From 2020-2023, the company invested more than $5.7 billion.

16. THE CHRISTMAN CO.

Top executives: Joseph Luther, senior vice president and general manager, Southeast Michigan operations; Mary LeFevre, regional vice president of business development

2023 revenue: $683 million

2020 revenue: $338.3 million

3-year % increase: 101.9%

3-year $ increase: $344.6 million

New projects have contributed to growth, including a student housing project at the University of Michigan's Central Campus in Ann Arbor. Backlog projects, including the rehabilitation of Michigan Central Station, and the construction of a FedEx facility in Romulus, have also contributed to strong revenues for Christman. The company has also seen growth from securing work in the education, health care, historic preservation, public and commercial sectors.

18. EMAGINE ENTERTAINMENT INC.

Top executives: Anthony LaVerde, CEO; Paul Glantz, chairman and founder

2023 revenue: $130 million

2020 revenue: $17 million

3-year % increase: 664.7%

3-year $ increase: $113 million

Much of Emagine’s growth is a bounceback from the worst days of the COVID pandemic, when movie theaters were shuttered. Emagine expanded into three new markets by acquiring ve new locations in Indiana, Illinois and Michigan. The expansion involved an investment of more than $40 million. In addition, Emagine introduced new revenue lines, including opening the Caesars Sportsbook Lounge Powered by Emagine, a sports lounge in Royal Oak.

18. VISTEON CORP.

Top executive: Sachin S. Lawande, president and CEO

2023 revenue: 3.95 billion

2020 revenue: $2.55 billion

3-year % increase: 55.2%

3-year $ increase: $1.41 billion

New program launches, new business, and a strong demand for its products that are featured on key customer vehicles and platforms have contributed to growth for the Van Buren Township-based automotive electronics supplier.

20. GENTHERM INC.

Top executive: Phillip M. Eyler, president, CEO and director

2023 revenue: $1.47 billion

2020 revenue: $913.1 million

3-year % increase: 60.9%

3-year $ increase: $556 million

Increased demand for its products, such as comfort, battery performance and cable technology-related products, have contributed to growth for the automotive supplier.

21. ALTIMETRIK CORP.

Top executives: Raj Sundaresan, CEO; Raj Vattikuti, executive chairman

2023 revenue: $304.6 million

2020 revenue: $142.5 million

3-year % increase: 113.8%

3-year $ increase: $162.2 million

Altimetrik's growth stems from the market's adoption of its "Digital Business Methodology," a holistic framework that focuses on delivering digital business outcomes. The framework unites business, engineering and data scientists in a cloud-based ecosystem.

21. BELFOR HOLDINGS INC.

Top executive: Sheldon Yellen, CEO

2023 revenue: $2.69 billion

2020 revenue: $1.78 billion

3-year % increase: 51%

3-year $ increase: $908 million

Belfor Holdings responds to more than 280,000 calls a year for global property restoration needs. Growth has been helped by several acquisitions in Scandinavia, Germany, France, Canada and the United States. The company's response to Hurricane Ian in late 2022 and 2023 also produced revenue growth.

23. ATWELL LLC

Top executives: Brian Wenzel, CEO; Matthew Bissett, president

2023 revenue: $379 million

2020 revenue: $183 million

3-year % increase: 107.1%

3-year $ increase: $196 million

Atwell saw growth from land development, power and energy, and the oil and gas markets. Strategic acquisitions have also contributed to growth, which has expanded the company's services, geographies and industries.

24. H.W. KAUFMAN GROUP INC./BURNS & WILCOX LTD.

Top executives: Alan Jay Kaufman, chairman, president and CEO, Kaufman; Danny Kaufman, executive VP of Kaufman and president of Burns & Wilcox; Jodie Kaufman Davis, executive VP, Kaufman

2023 revenue: $3.6 billion

2020 revenue: $2.45 billion

3-year % increase: 46.9%

3-year $ increase: $1.15 billion

H.W. Kaufman Group said it has invested in talent, technology and professional development resources, which has helped fuel growth for the rm.

25. GENERAL MOTORS CO.

Top executive: Mary Barra, chairman and CEO

2023 revenue: $171.8 billion

2020 revenue: $122.5 billion

3-year % increase: 40.3%

3-year $ increase: $49.4 billion

Strengthening vehicle demand over the past three years has helped revenue bounce back from a pandemic-induced trough, especially demand for its trucks and SUVs. GM grew its market share, and higher vehicle pricing also contributed to growth.

26. BELLE TIRE DISTRIBUTORS INC.

Top executives: Jack Lawless III, CEO; Donald Barnes III, president 2023 revenue: $700 million

2020 revenue: $403 million

3-year % increase: 73.7%

3-year $ increase: $297 million

Belle Tire has been able to grow revenue by launching and scaling new stores in new markets, optimizing sales in heritage markets, as well as strategic acquisitions, said President Donald Barnes III.

Visteon saw program launches and strong product demand. | AMERICAN CENTER FOR MOBILITY/VISTEON

Atwell saw growth from land development, power and energy. PROVIDED

Gentherm saw increased demand for its products. | PROVIDED

The market adopted Altimetrik’s “Digital Business Methodology.” PROVIDED

Tire entered

27. SACHSE CONSTRUCTION

Top executives: Todd Sachse, CEO; Steve Berlage, president and COO 2023 revenue: $246 million

2020 revenue: $121.5 million

3-year % increase: 102.4%

3-year $ increase: $124.5 million

Sachse's multifamily and hospitality construction divisions have experienced signi cant growth, which includes clients such as Perennial, Crawford Hoying and Roxbury Group. The education sector has expanded into K-12, which includes Pontiac Schools. Its retail business continues its expansion across North America, catering to luxury brands such as Christian Dior, Gucci, Celine and RH (formerly Restoration Hardware), as well as electric vehicle makers Rivian and Tesla. Sachse also expanded its market presence in diverse local and national segments.

28. BORGWARNER INC.

Top executive: Frederic B. Lissalde, president, CEO and director

2023 revenue: $14.2 billion

2020 revenue: $10.16 billion

3-year % increase: 39.7%

3-year $ increase: $4.03 billion

BorgWarner achieved growth organically through new products and systems solutions that evolve from in-house research and development and go into production. A series of acquisitions over the past several years has also driven additional revenue.

29. LEAR CORP.

Top executive: Raymond E. Scott Jr., president, CEO and director 2023 revenue: $23.5 billion

2020 revenue: $17.04 billion

3-year % increase: 37.7%

3-year $ increase: $6.42 billion

New business, product launches and performance improvements have contributed to growth for Lear. During 2023, Lear acquired I.G. Bauerhin, a Germany-based supplier of automotive seat heating, ventilation, active cooling, steering wheel heating, seat sensors and electronic control modules. The acquisition added new product technology and further expanded its suite of in-vehicle comfort technologies. In 2022, Lear announced a new plant in Independence Township to supply battery disconnect units to General Motors.

30. DEARBORN MID-WEST CO.

Top executive: Todd Begerowski, president

2023 revenue: $294 million

2020 revenue: $155 million

3-year % increase: 89.7%

3-year $ increase: $139 million

Revenue growth was due to expansion of project sizes and customer growth plans post-pandemic. Dearborn Mid-West was involved in a number of projects that involved converting plants from producing internal combustion engine components to electric vehicles, largely due to the

industry push and incentives over the last several years for electric vehicles.

31. SEKO WORLDWIDE DETROIT

Top executives: Michael Bartelo, owner, managing director; Tanya Bartelo, owner, managing director

2023 revenue: $85.1 million

2020 revenue: $34.2 million

3-year % increase: 149.1%

3-year $ increase: $50.9 million

S eko's growth is primarily attributed to supply chain expansion coming out of COVID restrictions. T he logistics company was responsible for shipping key consumer goods that were in high demand, including automotive parts and building materials.

32. EMPIRE REALTY GROUP

Top executive: Ahmad Fawaz, broker

2023 revenue: $89.6 million

2020 revenue: $38 million

3-year % increase: 135.8%

3-year $ increase: $51.6 million

Empire Realty credits bringing in builders, architects and interior designers as a contributor to its growth. It has also reduced operational costs to increase profit margins.

33. GHAFARI INC.

Top executive: Yousif G hafari, chairman

2023 revenue: $210.6 million

2020 revenue: $110.6 million

3-year % increase: 90.4%

3-year $ increase: $100 million

T he Dearborn-based architecture firm has seen continued diversification in the manufacturing sector and growth driven by the transformation of the automotive industry.

34. KENWAL STEEL CORP.

Top executive: S tephen Eisenberg, chairman and CEO

2023 revenue: $940 million

2020 revenue: $620 million

3-year % increase: 51.6%

3-year $ increase: $320 million

With continued fluctuations in market conditions and ongoing changes to its core business, Kenwal pivoted to new markets and technologies to achieve additional revenues.

35. NEXTEER AUTOMOTIVE GROUP LIMITED

Top executive: Robin Milavec, president, CTO, CSO and executive board director

2023 revenue: $4.21 billion

2020 revenue: $3.03 billion

3-year % increase: 38.7%

3-year $ increase: $1.17 billion

New business bookings, program launches and an expanding and diversi ed customer base have all contributed to growth for the automotive supplier. Nexteer has also expanded its global footprint.

36. MPS GROUP INC.

Top executive: Charlie Williams, chairman

2023 revenue: $190 million

2020 revenue: $102 million

3-year % increase: 86.3%

3-year $ increase: $88 million

MPS Group Inc. has continued to organically increase revenue, leading to increased contracts from its existing customers for additional sites and services. The company has also added new customers and industries to its portfolio.

37. PAT MILLIKEN FORD INC.

Top executives: Brian Godfrey, president; Bruce Godfrey, chairman 2023 revenue: $357 million

2020 revenue: $215 million

3-year % increase: 66%

3-year $ increase: $142 million

From 2020-2023, the dealership grew in every area of its business, including vehicles sales, parts, service and collision, said President Brian Godfrey. While new-vehicle sales drove revenue growth, the fastest-growing area of the business was its collision center.

38. SCRIPTGUIDERX

Top executives: Ime Ekpenyong, CEO; Vikki Columbus, chief pharmacy of cer 2023 revenue: $178.8 million

2020 revenue: $104.3 million

3-year % increase: 69.4%

3-year $ increase: $72.4 million

Growth is from the addition of new customers, expansion of its prescription bene t management services and the introduction of the company's new prescription discount card program, SGRXSaves. In addition, the company expanded its network of pharmacies to more than 65,000 locations nationwide.

ScriptGuideRX added new customers and expanded services. UK3 PHOTOGRAPH

Pat Milliken Ford in Redford Township | PROVIDED

39. MCL JASCO INC.

Top executives: Louis E. James, president and CEO; E'Lois Thomas, executive vice president

2023 revenue: $154.1 million

2020 revenue: $90.5 million

3-year % increase: 70.2%

3-year $ increase: $63.5 million

MCL Jasco has been able to achieve rapid growth by continuing to diversify its offerings, said E'Lois Thomas, executive vice president and chief administrative of cer. "We started off as an automotive supplier with projects from various OEMs. As part of our core business plan, we decided to broaden our strategic growth plans with energy and agriculture clients. Because of the additional service offerings that we have relentlessly invested in, we have experienced exponential growth.”

40. NEAPCO HOLDINGS LLC

Top executive: Kenneth Hopkins, president and CEO

2023 revenue: $1.09 billion

2020 revenue: $779 million

3-year % increase: 39.9%

3-year $ increase: $311 million

Farmington Hills-based Neapco's revenue growth has been driven by expanding its product portfolio toward all varieties of electric vehicle applications while expanding its traditional combustion propulsion driveline business. The company also implemented new design solutions, added new OEM customers and increased its capacity utilization in North America.

41. HUMANETICS

Top executive: Christopher O'Connor, president and CEO

2023 revenue: $250 million

2020 revenue: $160.7 million

3-year % increase: 55.6%

3-year $ increase: $89.3 million

From 2020-2023, Humanetics has grown by expanding its range of safety, digital simulation and sensor technology solutions. These solutions encompass safety hardware, simulation software and sensor technologies in the automotive, aerospace, biomedical, energy and telecommunications markets for the Farmington Hills-based company best known for making crash test dummies.

42.

CHEMICO LLC

Top executive: Leon Richardson, CEO, chairman, president

2023 revenue: $217.6 million

2020 revenue: $138.6 million

3-year % increase: 56.9%

3-year $ increase: $78.9 million

Chemico has achieved signi cant growth from its chemical products and related management services. The company has provided these goods and services to a diverse array of market segments, including automotive, aerospace, defense and government, electronics and health care. In addition, the company has continued to expand the geographic footprint of its team members and facilities to support operations across North America.

43. ALBERT KAHN ASSOCIATES INC.

Top executives: Kimberly N. Montague, president and CEO; Alan H. Cobb, chairman emeritus

2023 revenue: $26.5 million

2020 revenue: $9.5 million

3-year % increase: 178.9%

3-year $ increase: $17 million

The architecture rm has increased its project footprint in the health care, higher education and corporate of ce industries through architectural and engineering services. Projects include Corktown Health’s new health facility in Hazel Park, renovations for Wilson Hall at Oakland University in Rochester, and Erie Insurance Group facilities in Erie, Pa.

The rm has also secured commissions from domestic and international vehicle manufacturers and design-build partners in the surging electric vehicle and lithium-ion battery space. Projects that have contributed to growth in these sectors include startup venture StarPlus Energy’s EV battery manufacturing plant in Kokomo, Ind., as well as Vietnamese electric vehicle maker Vinfast’s EV manufacturing plant near Raleigh, N.C.

43. DSPACE INC.

Top executive: Peter Waeltermann, CEO

2023 revenue: $73 million

2020 revenue: $37.3 million

3-year % increase: 95.7%

3-year $ increase: $35.7 million

An increased demand for its testing tools due to the rise of electric vehicles and autonomous driving have led to revenue growth for dSpace. This includes the company's advanced driver assistance system, which implements virtual test drives using algorithms and models to replicate imaginable driving scenarios. The technology helps streamline the process for autonomous prototype vehicle testing, as previously vehicles were driven millions of miles during testing scenarios. "We have an offering that allows our customers to become more efficient and reduce costs," said CEO Peter Waeltermann. "This is a technology that has a good future and that's why we have seen good growth."

45. WALKER-MILLER ENERGY SERVICES

Top executives: Carla Walker-Miller, founder and CEO; Greg Walker, president

2023 revenue: $60.3 million

2020 revenue: $29.7 million

3-year % increase: 102.9%

3-year $ increase: $30.5 million

During the period, Detroit-based Walker-Miller Energy Services launched several new energy-ef ciency programs, expanded its clean-energy workforce development and contractor training to other states, and grew its material sourcing and procurement business into other territories.

46. RONCELLI INC.

Top executive: Gino Roncelli, president and CEO

2023 revenue: $358 million

2020 revenue: $245 million

3-year % increase: 46.1%

3-year $ increase: $113 million

Roncelli's growth in the construction market is driven by diversi cation. Roncelli now builds educational and health care facilities, multifamily housing, logistics hubs, manufacturing plants, of ces, restaurants, OEM plants, utility-scale solar energy projects and more. The company attributes its growth to opportunities in the middle market.

47. FELDMAN AUTOMOTIVE INC.

Top executives: Jay Feldman, chairman and CEO; Dave Katarski, COO and executive VP

2023 revenue: $1.71 billion

2020 revenue: $1.29 billion

3-year % increase: 32.2%

3-year $ increase: $415.8 million

Feldman has acquired revenue via acquisitions and through organic growth.

Feldman has also invested heavily in new technology and tools to increase productivity throughout the company.

48. PLASTIPAK HOLDINGS

INC.

Top executives: William Young, president and CEO; Michael Plotzke, CFO, treasurer and senior vice president of nance

2023 revenue: $3.62 billion

2020 revenue: $2.9 billion

3-year % increase: 24.8%

3-year $ increase: $718 million

The maker of plastic bottles says it has invested in diversifying its product mix and expanding its global recycling footprint.

49. PLANTE MORAN

Top executive: Jason Drake, managing partner

2023 revenue: $1.01 billion

2020 revenue: $747.7 million

3-year % increase: 35.1%

3-year $ increase: $262.1 million

The Detroit-based accounting rm attributes its growth to organic growth across all service industry groups, said Managing Partner Jason Drake.

50. RONNISCH CONSTRUCTION GROUP

Top executives: Frank Jarbou, partner; Bernd Manfred Ronnisch, president

2023 revenue: $60 million

2020 revenue: $33 million

3-year % increase: 81.8%

3-year $ increase: $27 million

As a construction boom has taken hold, Ronnisch Construction Group says it has achieved signi cant growth from repeat business. The company also credits strategically investing in hiring the right people for the right roles to foster a skilled workforce.

Chemico’s HR team | PROVIDED

Employees of Ronnisch Construction Group | PROVIDED

FAST 50: FASTEST-GROWING COMPANIES IN DETROIT AREA

2020-2023

AlanKaufman,chairman, president and CEO, Kaufman;DannyKaufman,executive vice president, Kaufman, president, Burns & Wilcox;JodieKaufman Davis,executive vice president, Kaufman

ResearchedbySonyaD.Hill:shill@crain.com|Thislistisanapproximatecompilationofthefastest-growingcompaniesinWayne,Oakland,Macomb,WashtenawandLivingstoncounties. 1. From AutomotiveNews. 2. ShareholdersapprovednamechangetoChampionHomesInc.duringannualmeetingthisyear. 3. Acquiredbyprivateequity rms,Dallas-basedTriveCapitalandJacksonville-based Bluejay Capital in June. Want the full Excel version of this list — and every list? Become a Data Member: CrainsDetroit.com/data

FAST 50: FASTEST-GROWING COMPANIES IN DETROIT AREA

LEAVE

From Page 3

e report estimates an overall premium contribution rate of between 0.49% and 0.62% of wages in 2025, with bene ts beginning in 2026. e contribution rate would rise to between 0.68% and 0.87% of wages by 2029 and drop to between 0.66% and 0.84% by 2035.

Employer and employee rates would be equal and each range between 0.28% and 0.48% of wages, depending on how the program is structured — the length of the maximum bene t period, for instance. ( e overall contribution rate does not equal the sum of the employer and employee rates due to small businesses not paying.)

e analysis estimates that costs would be approximately 10% higher if bereavement leave is included, as proposed by the bill but not included in the four topline nancial projections outlined in the study. It assumes workers would be allowed 10 days per death of a family member, capped at 15 days a year.

e study assumes 15% of workers would be covered by private plans and 85% by a state plan, and that private plans are more expensive than the state plan due to broker commissions and lower administrative expenses.

e sponsor, Sen. Erika Geiss, D-Taylor, said the report shows “that a state-run plan would not bankrupt the state. is means that it’s something that is possible and we need the political will to make it so.”

People, she said, “should not have to choose between a paycheck — and keeping the lights on, a roof over their heads, the ability to put food on the table, the ability to get to and from appointments or other things related to care — and caring for themselves or others. I also want to stress that this is di erent from earned paid sick leave, which is designed to be for shorter illnesses. … is is for that longterm need where the ability to take a few days o doesn’t cut it.”

Business groups continue to have concerns however, even if the legislation is amended to exempt small companies from making contributions.

“For small businesses to have an employee gone for that long and to have to hold that position open, it’s not doable. ere’s no way we can support that,” said Amanda Fisher, Michigan director of the National Federation of Independent Business. “If you tried to do this on top of what the court just did, I don’t know a lot of business owners that would want to start a business in Michigan, stay in business. You have a lot of people who are getting older. Is it worth it to keep going or do they just retire?”

David Worthams, employment policy director for the Michigan Manufacturers Association, said the analysis “con rms how expensive this program is going to be” and it is “not the time to throw this on top of businesses, especially small businesses,” after the court ruling.

e high court said 2018 maneuvers by which Republicans watered down the sick time and

minimum wage laws were unconstitutional. Business organizations are lobbying the Democratic-led Legislature to make changes before the new laws, which began as ballot initiatives, take e ect Feb. 21, citing a host of problems. It is unclear if that will happen.

Geiss said she would be “very disappointed” if legislators tried to dilute the law requiring shortterm leave.

Business lobbyists have expressed con dence that not all Democrats in the narrowly divided Capitol support passing a longterm leave law, as evidenced by the lack of movement since Whitmer added it to her agenda nearly a year ago. But it is unknown if and how the report, and potential revisions to the short-term leave law in coming months, may shape and potentially bolster e orts to enact a long-term requirement.

Jared Make, vice president of the New York-based legal advocacy organization A Better Balance and lead drafter of Colorado’s voterapproved paid family medical

leave law that started this year, said Michigan’s proposed Family Leave Optimal Coverage Bene ts Act “provides an a ordable, proven solution at a cost of only a few dollars a week for the average worker. ... In addition to providing a critical safety net to workers, a paid family and medical leave insurance program would also support businesses and lead to cost savings through improved retention of workers and a healthier, more productive workforce.”

e study, he said, demonstrates that it is possible to structure the program so the smallest employers would pay no premiums and their employees would be covered.

e Michigan Chamber of Commerce has said it opposes an “ex-

pansive statewide mandate” that would allow workers to miss 30% of workdays per year when combined with their short-term sick days.

A Whitmer spokesperson said her o ce was reviewing the Milliman study.

“ is is the one thing on (Whitmer’s) ‘what’s next’ agenda that hasn’t gotten a committee hearing. So we are really hopeful that this study will help this legislation go forward,” said Danielle Atkinson, executive director of Mothering Justice, which successfully sued to restore the Earned Sick Time Act and supports the enactment of mandatory long-term leave. “We are anticipating a good conversation with the governor’s o ce and, again, really hope that she will put this as a priority in her administration.”

Gov. Gretchen Whitmer called for a paid family medical leave law in August 2023, but legislation has not gotten an initial hearing. BLOOMBERG

EQUITY

From Page 1

Around 80% of the home equity loans Fuca works on, he said, are for someone who needs the money for general nancial purposes as opposed to funding a home repair or other speci c needs, as has been a traditional reason.

Brokers like Fuca and other executives in housing nance say the popularity of home equity loans has increased in recent years with a key advantage being that they e ectively act as a second mortgage, giving borrowers access to cash while allowing them to keep the low interest rate on their primary mortgage.  Given that most homeowners at

present have a relatively low interest rate from the COVID-19 pandemic era, a cash-out re nance loan would be “ nancially devastating” for many borrowers as their monthly payment would skyrocket, Fuca said.

Home equity borrowing petered out during the pandemic years when interest rates were low and homeowners opted to re -

PEOPLE ON THE MOVE

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BENEFITS / INSURANCE

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FINANCIAL SERVICES

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nance and paid o debt as government money was owing. But HELOCs have picked up again as interest rates climbed, household debt has soared and home values appreciated.

Such loans bottomed out at the end of 2021 but have rebounded in recent months. In the second quarter of this year, Americans tapped about $380 billion in home equity value, the highest since early 2020, according to data from the Federal Reserve Bank of New York’s Credit Panel and Equifax.

“Given record levels of home equity and the undesirability of cash-out re nancing, one may actually wonder why we are not seeing a larger surge in HELOC originations,” New York Fed researchers wrote in a recent post.

rently the nation’s largest mortgage lender — does “thousands” of home equity loans every quarter, according to UWM Chief Strategy O cer Alex Elezaj.

Like most other nancial products, home equity loans are largely a function of the broader economic climate, Elezaj noted. During the pandemic, even when usage was lower than today, such loans were often used to fund home improvements while, at present, they’re often used to pay down debt that Americans have built up.

INSURANCE

Jenni Gianotto is an assistant vice president and account executive at NFP’s Royal Oak of ce. With over 25 years of industry experience, she specializes in cost containment strategies and health and welfare plan compliance for mid-market and larger clients. Supporting groups of 500-5,000 employees, Jenni specializes in self-funded organizations. Her passion lies in equipping clients with the knowledge to navigate bene ts complexities while fostering genuine connections.

Lockton Companies

Diversi ed Members Credit Union is pleased to welcome LaNetra Kellar as Director of Financial Education, a new position aimed at increasing the nancial wellness of DMCU’s community. Kellar will lead DMCU in providing nancial literacy education, in collaboration with businesses and nonpro t partners, through seminars and workshops, nancial coaching, and more. The position is the rst of its kind in DMCU’s nearly 100-year history and is among the rst for credit unions across the U.S.

LEGAL

Honigman LLP

At Rocket Companies Inc., the Detroit-based parent of Rocket Mortgage, the company o ers a home equity loan product more comparable to a personal loan, as opposed to traditional HELOCs, which function more as a line of credit, similar to a credit card.

e loans have the advantage of generally carrying a lower interest rate than traditional credit card debt. ey are also a strong product for more traditional banks and bring in a “steady volume” of business, according to Joe BattCapps, vice president of home equity and loan innovation for Grand Rapids-based Lake Michigan Credit Union, the state’s largest credit union.

Rocket’s home equity loan product reached an all-time high in the second quarter, more than doubling from a year ago, according to CEO Varun Krishna. e company does not break out speci c volume on such lending.

During the second quarter, Rocket launched an Automated Valuation Model, which allows for a “digital alternative” to more traditional in-person home appraisals. It allows for delivery of cash to borrowers in as little as one week, according to the Rocket earnings report.

“ is can be attributed to the rise of home values in the market, which has allowed our members to leverage that equity at a low interest rate,” Batt-Capps wrote in an email to Crain’s. “Many of our members are choosing to invest in their current homes or improve their nancial standing by consolidating high interest credit card debt.”

In recent months, talk has turned to lower mortgage interest rates. Mortgage rates this month hit their lowest point in more than a year.

Given the apparent change, it would seem likely that demand for home equity loans could soften once more in the coming months, Elezaj said.

Mark Gregory joined Lockton Companies as a Producer, focusing on People Solutions in the Employee Bene ts space. Gregory brings more than 20 years of industry experience to Lockton and is heavily focused on driving and developing strong relationships.  Mark was born and raised in Grosse Pointe, MI., and attended Michigan State University.

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Honigman LLP welcomes Ricardo White to its Regulatory Department as a government relations and regulatory advisor in the rm’s Government Relations and Regulatory Practice Group. Bringing over a decade of state government experience, White specializes in guiding clients through the complexities of federal, state, and local political and public policy issues, helping them navigate legislative landscapes and regulatory challenges with strategic insight.

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PNC Bank has promoted David Pierle to senior vice president, market leader for the bank’s Southeast Michigan Commercial Banking Group. In this role, he is responsible for leading a team of commercial bankers working with local business and not-for-pro t clients. David earned his bachelor’s degree in nance from Central Michigan University, and his MBA from the University of MichiganFlint.  PNC has also promoted Patrick Mondro to senior vice president, commercial banking group manager. In this role, he leads a team of commercial relationship managers in Southeast Michigan committed to helping their clients prosper. Patrick earned his bachelor’s degree in nance from the University of Michigan-Dearborn, and his master’s degree in nance from Walsh College.

NONPROFIT

The Community Housee

“ is is a great example of product market t,” Krishna said of home equity loans during an earnings call with analysts and investors earlier this month. “And we’ve seen strong demand in the product volume ... because it’s an o ering that’s incredibly valuable to our clients.”

Likewise, Pontiac-based United Wholesale Mortgage Corp. — cur-

“Obviously, the lower the rates go, people aren’t as concerned about getting a HELOC,” Elezaj told Crain’s. “ ey’re in the money to re nance their loan. Anybody who’s gotten a 30-year xed loan in the last two years ... there’s a huge opportunity for them to save money (on) mortgage rates.”

Contact: Laura Picariello Sales Manager

732.723.0569 • lpicariello@crain.com

Dawn Wyatt has joined The Community House in Birmingham as Director, Education & Enrichment. Formerly serving as the Troy School District Community Education and Enrichment Supervisor, she brings a wealth of experience in many areas, including leadership, planning, program implementation, revenue ampli cation, facilities coordination, community engagement, and team development. At The Community House, she will work to implement new communityoriented programs for both children and adults.

Mondro

Pierle

Steel products maker to close plants near Port Huron

yB Elizabeth Schanz

A manufacturer of steel warehouse equipment is set to close a St. Clair County plant and lay o all 89 of its employees as it prepares to move operations south.

Heartland Steel Products, with facilities at 2420 Wills St. and 302 Carleton St. in Marysville, near Port Huron, will end operations Sept. 20, according to a WARN notice led with the state.

Heartland Steel Products makes racks and other storage items for the warehousing, retail, manufacturing and distribution industries, according to the company’s website. Its services include manufacturing oor displays, back-room storage and replenishment stock. e company also produces pallet

DRY CLEANER

From Page 3

Initially, the expansion into restoration began with marketing the business to local restoration contractors and mitigation companies. Additionally, Huntington Cleaners did national training with insurance companies about the salvageability of garments.

Wudyka decided he wanted to create a new restoration system business based on the model he had started at his dry cleaner. In August 2001, Wudyka established the CRDN franchise — a company separate from his Huntington Cleaners — o ering a formal model for restoring textiles damaged by smoke and water, thereby creating cost savings and strategic value for the insurance industry.

e business grew by recruiting franchisees, mainly dry cleaners that were looking to diversify into textile restoration.

racks, mezzanines, stairways and safety rails.

e company is “moving down south, because they said, logistically, Michigan was not a t for them. ey also closed their Ohio plant,” said Todd Lince, president of Teamsters Local 337. “( e company) said that their new business is not in the north, it is in the south.”

e decision a ects nonunion employees and union workers represented by Teamsters Local 337. Bumping rights exist for the union members. Layo s will start Sept. 20 and the company said it expects all separations to be nalized by Nov. 15, according to the July 22 notice signed by Robert J. Finkel, labor counsel to Heartland Steel Products.

Teamsters Local 337 Vice Presi-

ration resources. Some 14 years into the business, CRDN added electronic restoration — repairing “anything that plugs in,” like curling irons, treadmills or deep freezers, Wudyka said. In 2020, it added art restoration and in 2022 it added hard goods and full content restoration solutions, he said.

Last year, CRDN processed 30,000 claims and had approximately $250 million in sales — a 34% increase in top-line sales in 2023, and 25% in 2022, Wudyka said. CRDN franchisees are generating $2.1 billion in revenue, a spokesperson said.

dent Jim Parrinello told Crain’s that the union is “set up to negotiate a closing agreement with the company.” He o ered no more details.

Finkel and Amy Walton, director of human resources for Heartland Steel Products, did not reply to multiple requests for comment. Attempts to reach other company o cials were unsuccessful.

Marysville Mayor Kathy Hayman said she and the city were unaware of the closure. “I mean, it’s very sad … and you know, we certainly hate to lose jobs,” Hayman told Crain’s.

Marysville is listed as the headquarters of Heartland Steel Products and is one of three locations alongside Harrison, Ohio, and Lodi, Calif., according to the company’s LinkedIn page. e compa-

include internal temperature and water dispenser testing for refrigerators or checking sound, volume and ports on other electronics.

For art restoration, the techniques and materials needed depend on the object and material an item is made of. Typically, technicians apply non-volatile, noncorrosive and non-acidic solvents.

e tools used for textile work include solvents, wash formulas and deodorizing chambers. Upholstery restoration employs “nonaggressive methods” like steam, water or heat to extract damage and odors.

ny was founded in 1954. Heartland Steel Products has been part of the LFM Capital, a Nashville-based private equity rm, portfolio since December 2016. In late 2022, Heartland acquired SteelPro LLC based in Houston, Miss., which designs and fabricates a variety of structural steel solutions for commer-

ing to damage caused by pipes bursting or furnaces malfunctioning. During the summer, there are more claims connected to storms that include rain, ooding and tornadoes.

cial, industrial and material handling applications. Terms of the transaction were not disclosed. Jason Merschat was president and CEO of Heartland Steel until January, according to his LinkedIn page. Previous CEO Brian Kaminski left in June 2023 and is now an operating partner at LFM Capital, according to his LinkedIn page.

some more than 40 years old, which were damaged by mud, water and sludge.

After Denmark made a Facebook post looking for a resource to restore the photos, she was put in contact with Je Williams, an account executive of CRDN of Michigan/Huntington Cleaners.

“Most of the artwork was able to either be originally or digitally restored,” Denmark said in a statement provided by CRDN. “Not only did they restore the prints, they reframed everything and delivered them back to us, along with the damaged originals.”

MARKET PLACE

“Everybody that we franchised had the tools they needed, they just needed to understand how to get into the restoration space. And that’s where CRDN really added a lot of value to their businesses, as well as we built a national brand … with a consistent model for business, pricing method of doing business and KPIs (key performance indicators),” Wudyka said.

In its rst year, CRDN opened franchises in 34 cities and added another 50 cities during the second year. Today, CRDN has more than 150 franchisees with 5,000 employees in the United States, Canada and United Kingdom. e appeal of the CRDN model for franchisees includes the technology, training and support sales that the company o ers, Wudyka said. Others wanted to join a national brand.

“When we found like-minded business people that happen to be in the dry cleaning industry, they understood and they could see very clearly what we had done here in Southeast Michigan,” Wudyka said.

As CRDN grew, so did its resto-

Wudyka attributes the growth of CRDN to expanding market share and the company’s full integration of its services — owning and operating its own facilities for dry cleaning, laundry, electronics cleaning and art studios. Additionally, the company packs out damaged items from homes and stores them in CRDN buildings, Wudyka said.

CRDN does not work directly with customers but rather connects with insurance companies, which send it restoration claims. Insurance companies bene t from the restoration services, which can repair and save items instead of having to pay to replace them.

Last year, there were 28 weather and climate disasters across the U.S. that caused approximately $92.9 billion in damages, according to NOAA National Centers for Environmental Information. With increasingly severe weather conditions across the globe, restoring household items remains a large part of disaster-related insurance.

Home contents restoration is big business, valued at $41.2 billion worldwide in 2023 and projected to grow to $80.1 billion by 2030, according to Veri ed Market Reports.

e technology used in restoration projects depends on what needs to be repaired. For electronics, CRDN has a “proprietary testing cart” that the company takes to the claim site to test items before they are removed. It also provides post-restoration testing that can

CRDN jobs run a wide range of costs. A typical art restoration claim is approximately $3,000, electronic claims are around $3,000 and textile claims — clothes, towel, curtains and more — range from $5,000-$6,000 while a full house restoration would be about $30,000. e cost to repair “pales in comparison” to replacement and inconveniences for homeowners, Wudyka said.

“At the essence, the core of what we do is help people get back on their feet,” the business owner said. “I feel great about that because every day we’re helping people across three countries and it all started here in Detroit.”

e ability to help people who have been through a disastrous situation is something Jennifer Budzinkski, general manager for CRDN of Michigan and Northwest Ohio, has seen develop during her time with the company.

Budzinkski has been a part of CRDN development from the initial idea to its current form. Originally, she worked at Huntington Cleaners while she was in high school before Wudyka and his partner, and co-founder of CRDN, Je rey Snyder purchased it. Now, Budzinkski manages close to 180 employees in about 10 facilities in her territory.

CRDN’s industry is weatherreliant, Budzinkski said. In the Michigan market, claims vary across the four seasons. In the winter, water and re jobs are prominent with claims often relat-

e frequency of ooding in Michigan is expected to increase as climate change shifts seasonal patterns and increases extreme weather. Michigan has seen average annual rainfall increase by around 5 inches and a yearly temperature increase of 2 degrees Fahrenheit since 1900, according to the state Department of Environment, Great Lakes and Energy. Notably, in May 2020, the Stanford Lake dam in Midland County failed after 5 inches of rain fell in the area. More than 2,000 homes were damaged or destroyed in the flooding. at disaster destroyed the longtime family home of Cheryl Denmark. e house was demolished after being lifted and damaged during the ooding. Before demolition, she and her family pulled photos from the house,

e investment for CRDN franchisees ranges from $63,650$513,850 with initial fees ranging from $45,600-$64,600, according to Franchise Times. e largest investment for franchisees is the equipment needed, Wudyka said. Equipment needed for electronics repair is about $50,000 and about $40,000 for art restoration, Wudyka said.

Currently, the company has limited franchise territory available.

Heartland Steel Products, based in Marysville, makes steel pallet racking and other warehouse equipment. HEARTLAND STEEL PRODUCTS

In the last decade, Detroit movie theater deals have collapsed, others have stalled for years and some moviegoing options in the city have shut their doors, leaving residents with few remaining places within city limits to take in a ick outside their homes.

ose remaining include the city’s only rst-run multiplex, Bel Air Luxury Cinema on Eight Mile Road on the northeast side, the Detroit Film eatre at the Detroit Institute of Arts and the Redford eatre on the northwest side.

Cinema Detroit still does pop-up showings of rst-run movies, but it is without a permanent home after it was forced out of its longtime home on ird Avenue in Midtown a year ago. e Ren Cen 4 theater closed in 2015 after almost three decades in operation.

The demand for a new theater is there, said one developer whose deal collapsed prior to the COVID-19 pandemic.

“If you build it they will come — but it’s hard to get that underwritten. Whoever does put that out there is going to do well,” said Jonathan Hartzell, general partner of Livonia-based Detroit Rising Development. “You just have to have some faith.”

Numbers game

Of course, Hartzell and others know it’s much more than just faith.

It’s a numbers game, and the numbers don’t pencil out anymore, said Paul Glantz, chairman of Troy-based Emagine Entertainment Inc. However, that doesn’t mean they won’t. Emagine’s plan for a multiplex in Detroit was a $25 million proposal turned into $35 million and is now on the back burner, Crain’s reported earlier this year.

While movie ticket sales have been increasing and 2023’s shade over $9 billion in revenue is still an improvement over previous years, it’s still far o 2019’s $11.4 billion, per e Hollywood Reporter. Sales had been north of $10 billion annually starting in 2009 and more than $11 billion every year starting

had seating for about 100 and a second screen with seating for perhaps 18-20, said Paula Guthat, a co-founder of the theater along with her husband, Tim.

Just prior to the pandemic, the small nonpro t had what she described as its best year ever, bringing in about $250,000. But COVID-19 brought headwinds, including closing the small theater for a year and a half, on and o , and sending a lot of movies directly to streaming.

in the central business district. In the past, it has looked at sites in Corktown, Midtown, New Center and other parts of the city.

in 2015 until the pandemic hit in early 2020, e Hollywood Reporter reported in December.

Projections are showing a nearfull recovery by 2026 in ticket sales, Glantz said, but that’s only one part of the equation. Another is demand.

“We are seeing a healthy recovery, but to be candid, it’s not clear that there is truly unful lled demand for more movie capacity at this point,” Glantz said. “We’ve been quite fortunate to grow our market share in Southeast Michigan, but it’s not clear that we are turning people away.”

More broadly, the region has waned in market share of ticket sales, according to Comscore Inc. Data from Reston, Va.-based Comscore (Nasdaq: SCOR) shows that in the last nearly quartercentury, the Detroit metropolitan statistical area, or MSA, fell from the eighth largest in terms of U.S. and Canadian box o ce ticket share to uctuating from 18th to 20th since 2010.

In February 2018, Glantz and Detroit rapper Sean “Big Sean” Anderson gathered at the former’s theater in downtown Royal Oak.

ey said, together, they were going to build a 10- to 12-screen move theater in the Motor City called the Sean Anderson eatre Powered by Emagine.

It seemed to make sense. Emagine was expanding. Construction projects were everywhere in Detroit. e city had then, and has now, a dearth of movie theater options. So, the thinking was that a new one by a growing chain and extremely popular hometown musician appeared logical.

So why wouldn’t a sparkling new movie theater by a growing chain and an extremely popular hometown musician get built?

e project, still struggling for survival, encountered dead end after dead end when searching for a site, even before the pandemic shocked the global economy in March 2020.

Emagine has retained a new consultant on the project in an e ort to nally get it out of the ground — and, in particular, secure a location, something that has long eluded the chain.

Nevan Shokar, a former Detroit Economic Growth Corp. executive who started his own consulting rm, Shokar Group LLC, earlier this year, said Emagine is looking

“Definitely the size of the site could be a challenge, especially if you’re looking downtown, but it’s also about being in the right location where people could theoretically walk to the theater, as opposed to having to be in a car or take public transportation,” Shokar said.

Glantz said he’s more optimistic than he’s been in a while about the fate of the project.

“We are having more substantive conversations these days than we’ve had in quite some time about locations,” Glantz said. “We haven’t given up at all.”

Doomed proposal in Midtown

Site issues also ultimately doomed Hartzell’s proposal for an Alamo Drafthouse Cinemas LLC location on a site straddling the Midtown neighborhood.

In the months leading up to the COVID-19 pandemic, Hartzell’s Detroit Rising Development and Alamo Drafthouse could not come to an agreement on how to provide about 300 parking spaces to moviegoers and the plan died for the theater with nine screens and seating for about 900 people. It would have been located on a Detroit Water and Sewerage Department-owned site at 94110 Stimson St. west of Woodward Avenue at Martin Luther King Jr. Boulevard.

Hartzell said other operators have been in touch with him via their brokers and whenever he “mentioned other sites that make sense, they don’t seem to materialize.”

Industry observers said the central business district is a logical spot for a new rst-run cinema, but whether it’s a multiplex isn’t entirely clear.

“ e way downtown is developing, it shouldn’t be di cult to imagine that there is some rstrun cinema that exists in the downtown corridor,” said Adam Sekuler, a lmmaker and assistant professor of journalism and media production at the University of Michigan-Dearborn. “ ere’s so much economic development going on in the center of the city, so why shouldn’t there be a movie theater also?”

COVID headwinds, slow operations

Cinema Detroit had been showing rst-run movies — foreign lms, arthouse lms and others — for about a decade across a pair of screens, the main screen theater

Cinema Detroit’s operations on ird Street stopped last summer, although there have been about 20 pop-ups since. Guthat’s organization had about 1,800 square feet, but that was a bit small because there wasn’t enough space to store concessions like pop and popcorn bought in bulk.

A Cinema Detroit lm series is planned starting next month at Planet Ant in Hamtramck, continuing through the spring.

“We have some really exciting new lms, and maybe some old ones,” she said. “I’m still booking lms. I never stopped.” Guthat laments the loss of the space, which was di erent than some moviegoers were used to, but said there was a dedicated group of patrons.

“I don’t know how many times somebody would walk in and be like, ‘ is isn’t a movie theater,’” she said. “Technically, no, but we show movies here. Just the idea of something that wasn’t a multiplex or the Detroit Film eatre seemed to be a barrier for some people.

“But some of our biggest fans were not from Detroit … from other states, other countries. People from New York, California; we had people from Germany, France, Australia. ere are people in Australia wearing Cinema Detroit T-shirts,” Guthat said.

Theaters compete with convenience of streaming

Operating a theater isn’t just selling tickets and popcorn, of course, and pocketing the di erence between the costs and what you charge. It requires expensive projection equipment. Equipment to decrypt lms. Studios take a large portion of the ticket sales revenue, usually at least 50% if not much more, Glantz and Guthat said.

“First-run movie theaters have had a really tough go of it in recent years with the pandemic and the streaming issue,” said Brian Connolly, a land use attorney who is now an assistant professor of business law in the Stephen M. Ross School of Business at the University of Michigan. “Movies are no longer exclusively released in rstrun movie theaters … and it’s hard to think of another commercial business that got hit harder or as hard as commercial rst-run movie theaters during the pandemic. “ ere probably is a market in Detroit for people who would have the disposable income to buy a movie ticket, and alcohol and a ticket, or expensive food and beverage and a ticket. It’s just the question of whether somebody is going to build a purpose-built building for that right now.”

Rapper Sean “Big Sean” Anderson (left), who grew up in Detroit, and Emagine Entertainment founder and Chairman Paul Glantz in 2018 when they announced their plans to open a movie theater and live music venue in Detroit. KIRK PINHO

Plans for an Alamo Drafthouse Cinema LLC movie theater on this site off of Martin Luther King Jr. Boulevard were scrapped over parking. | KURT NAGL

How this South eld law rm

CEO is breaking the mold

Law rms, just like almost every organization, are a people business. And these days, business is hard. Attracting and retaining lawyers in a market of musical chairs for local attorneys is a major headache for law rm leaders, including Kellie Howard, 44, CEO of South eld-based Collins Einhorn Farrell PC. In a bid to attract talent and make a mark on the 50-year-old law rm, Howard is looking to turn tradition on its head. Her very election to the helm did just that. She is the youngest and rst minority CEO at Collins Einhorn. While one of her main objectives is to bring in and retain more lawyers, instilling in them a sense of purpose is equally important. That will require a paradigm shift in how to run a law rm.

Can you tell me a bit about yourself and the rm?

I am the fourth generation of leadership, and so over the transitions of leadership in the rm, we have learned our lesson about preparing the next set of leaders. I was elected back in February of 2023, and we started the transition immediately after the election, so I was learning the role and performing various aspects of it.

e rm is one of the largest Michigan law rms. When it started, it was a boutique law rm. We had highly specialized areas that we engaged in. ere were no generalists. So, we have our professional liability group, which is still one of the preeminent practice areas for the law rm. ere are not many law rms in the state of Michigan that defend professional liability claims. e number of attorneys uctuates greatly because of the employment market. We probably are a 62-lawyer law rm at our max. But right now, we function around 52 to 54 lawyers, which is a sign of the times, and the thing that keeps me awake at night.

What do you mean by that?

I mean in terms of getting people who want to be in this industry. It can be a grueling industry. We have too much work, we don’t have too little work. So, some of that can be really challenging. We defend large insurance companies and their clients, and also corporate entities, and so instilling a sense of purpose into lawyers who are doing that work can be something that we have to address. ey need to feel like what they’re doing matters and they’re not just working for money. So, we have to spend a lot more time, I think, making our lawyers and other employees feel signi cant in what they’re doing. It’s not a nancial issue. It’s de nitely just a people issue.

What takes up more of your time, practicing law or running the law rm?

Allegedly, I’m still a practicing lawyer, but I have to say that the business of the law rm has taken up a lot of my practice now. So, I manage a book of business and I have a team of lawyers who work with me. I have had to train myself to be a better manager and better delegator, on top of learning how to manage the entire law rm. at is something I wasn’t entirely

Kellie

Howard is CEO of South eld-based Collins Einhorn Farrell PC. | COLLINS EINHORN

FARRELL PC

By | Kurt Nagl

“Hands down, and I think that my fellow law rm managers would tell you the same thing: Hiring and retention is the hardest thing in the current marketplace.”

prepared for … Most of the people who’ve stepped into this position — the former chief executive o cer who’s now retired — they’ve been near the end of their practice and not like right in the middle. So they had more time to dedicate. ey’d already established themselves and had more time to run a law rm. I’m the youngest managing partner ever even though I don’t feel young anymore. But I’m 44, and that’s kind of unusual because the chances are that by the time I’m done with my management role, I’ll still be practicing law.

What do you nd more difcult, being an attorney or running the rm?

It very much uctuates. ere are certain months where everything is on re, and it can take like 80% of my time, you know, managing the law rm, especially when it comes to hiring and retention. e way that our practice groups operate, it can take a lot of time. ere are other times when things are somewhat quieter, and it can drop down to more like a 50/50 sort of balance.

What’s been the biggest challenge?

Hands down, and I think that my fellow law rm managers would tell you the same thing: Hiring and retention is the hardest thing in the current marketplace. And there are lots of di erent theories about why that is. I haven’t quite settled on which one is the correct theory, but I do know this: ere are fewer lawyers coming out of law school in the state of Michigan. So our feeder pool is decreasing. We’re just graduating fewer lawyers in the state. And something happened after COVID. It changed the marketplace, and I think that what I’ve seen is a change in the view of lawyers, especially younger lawyers, of what life should be like as a lawyer. And responding to that change and viewpoint is, I think, the challenge for all law rm leaders. I am part of Generation X, and when we came up, the view was you were kind of going to get cracked on, you were going to work hard, and, you know, one day 10 years or 15 years down the line, you were going to nd your pot of gold. You were going to become a partner, and that was the path to success. You just had to hunker down, work hard, weather the storms until you got there, right?

President

Group publisher Jim Kirk, (312) 397-5503 or jkirk@crain.com

Executive editor Mickey Ciokajlo, (313) 446-0319 or mickey.ciokajlo@crain.com

Managing editor Michael Lee, (313) 446-1630 or malee@crain.com

Director of audience and engagement Elizabeth Couch, (313) 446-0419 or elizabeth.couch@crain.com

Director of visual media Stephanie Swearngin

Creative director Thomas J. Linden, tlinden@crain.com

Audience

Assistant

Assistant managing editor-special projects

Leslie Green

Projects editor Stacy Sominski

How is that changing?

For young millennials and for the generation after — we’re now graduating Generation Z lawyers — that is not a perspective that they are willing to endure. ey do not con ate the workplace with their personal identity. ey see themselves as a person rst and as an employee as a means to an end. And if those two things do not work together in harmony, they don’t want it. So pivoting to respond to that. You have to be a place where people want to be. I know that sounds crazy, but that wasn’t the workplace when I graduated law school. It wasn’t about accommodating the person, it was about the person accommodating the industry. at’s not who we are anymore. I know I say that hiring and retention is the biggest challenge, but I think if you dig down on it even more, I think the biggest challenge is changing the mindset of the internal stakeholders so that they understand that we have to be a place of wellness, of wholeness, of purpose. at’s a whole perspective shift for all law rm managers. I think because I am the age that I am, I have more ability to understand that and sort of help us to pivot our way of thinking into the future.

How does the idea of workplace diversity play into your leadership and hiring style? I think that when I am looking for the best person to do a job, I have to think about what would best suit our clients’ needs. Our clients are looking for us to have a bunch of players that re ect them in the industry, their clientele, what we’re going to be dealing with in terms of the jury pool, who are the lawyers that are going to be on the other side of our cases. ey are wanting that from us. So when I am thinking about who is the best candidate, I’m thinking about a number of factors. I can honestly tell you, I’ve never sat down and thought, “OK, let’s start with the fact that this person is Black or this person is a woman or this person is a part of the LGBTQ community …” I think that diversity is important, but I think it’s important in a more broad sense. I think it has to be a part of an overall strategy to meet your clients’ needs. I do not think that in our for-pro t industry it is an end unto itself.

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Jay Davis, restaurants, retail and small businesses, (313) 446-1612 or jason.davis@crain.com

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Volume 40, Number 32

Crain’s Detroit Business (ISSN 0882-1992) is published weekly, except