Crain's Detroit Business, October 23, 2023 by Crain's Detroit Business

CRAINSDETROIT.COM I OCTOBER 23, 2023

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Henry Ford, Ascension in joint venture

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Detroit-based hospital system to take control of Ascension’s Southeast Michigan facilities

By Dustin Walsh

Henry Ford Health announced Wednesday it will create a joint venture that pulls all of Ascension Michigan’s hospitals in metro Detroit under its stewardship. Under the no-cash deal, eight Ascension and Genesys hospitals and an addiction treatment center will be rebranded under Henry Ford. The hospitals that will be operated by Henry Ford include its existing footprint, plus Ascension Brighton Center for Recovery, Ascension St. John Hospital, Ascension River District Hospital, Ascension Genesys Hospital, Ascension Macomb-Oakland Hospital-Madison Heights, Ascension Macomb-Oakland Hospital-Warren, Ascension Providence Hospital-Novi, Ascension Providence Hospital-Southfield and Ascension Providence Rochester Hospital. The combined entity would

Ascension St. John Hospital in Detroit. | ASCENSION HEALTH

employ 50,000 at more than 550 sites across the state. Despite Henry Ford controlling the assets, the health system claims it’s not an acquisition. Ascension Michigan will continue to operate its Northern Michigan and Southwest Michigan hospitals, the companies said in a press release. See HENRY FORD on Page 18

Dykema moving Bloomfield Hills office to Birmingham By Kirk Pinho

Dykema Gossett LP is moving its Bloomfield Hills office to downtown Birmingham. The Detroit-based law firm is downsizing its physical footprint along Oakland County’s Woodward Avenue corridor as part of its move into a new five-story mixed-use building coming to the site of the former Mountain King Chinese restaurant and a Talmer Bank branch. Dykema currently takes about 46,500 square feet in the 139,400-square-foot Bloomwood Office Centre, according to CoStar Group Inc., a Washington,

D.C.-based real estate information service. The new Birmingham building has about 32,400 square feet of office space that developer Doraid Markus of Birmingham-based Markus Management Group said this month was going to a law firm in Oakland County, but he declined to name the tenant at that time. A source familiar with the matter confirmed Dykema’s move on Oct. 12, and Markus then said on Oct. 16 that his company is “pleased to welcome Dykema to Birmingham.” “We believe Dykema will be a tremendous addition to the downtown Birmingham business district,” Markus said.

A message was left with a Dykema spokesperson seeking comment. It’s not known how many employees are moving. Ultimately, the new building at South Old Woodward Avenue and Hazel Street is expected to include 22 residential units on the fourth and fifth floors, on top of ground-floor restaurant space, and the second- and third-floor office space for Dykema. Troy-based The Alan Group Inc. is the general contractor and Ann Arbor-based Bowers + Associates Inc. is the project architect. Farmington Hills-based Grand/ Sakwa Properties LLC owns the Bloomwood Office Centre.

Work is underway to install foundations for a new five-story building in downtown Birmingham. | KIRK PINHO

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On a roll Hamtramck Coney dog bun baker begins expansion.

Real estate Former Universal Mall site in Warren up for sale.

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Weight Watchers pioneer, Jewish Birmingham’s new activist Florine Mark dies at 90 bank now open By Dustin Walsh

Florine Mark, a prominent Jewish leader in Detroit and former president of Weight Watchers Group, died Friday, Oct. 13, at 90 years old. The cause of death was unknown, her eldest daughter Sheri Mark told Crain’s. Services were held Thursday. Mark’s death came less than a day after she was interviewed on CBS Detroit in her home about the conflict in Israel. She has three generations of family in Israel and recently traveled to the country, CBS Detroit reported. Mark had a long history of supporting Jewish organizations in Michigan. She served on the boards of dozens of organizations including the Jewish Federation of Metro Detroit, the United Jewish Fund, the Jewish Women’s Foundation and more. Mark was named one of Crain’s Most Connected in 2015. She was also the first female director of Detroit Renaissance, which is now Business Leaders for Michigan. She served on the boards for the Detroit Economic Club, Inforum Center for Leadership, Detroit Institute for Children and

Florine Mark | FLORINEMARK.COM

more. In 2001, she was elected to the Women’s Leadership Board at Harvard University’s John F. Kennedy School of Government and served as vice chair for the Detroit Branch of the Federal Reserve Bank of Chicago. Mark founded the first Weight Watchers franchise in Michigan in 1976 at Seven Mile and Greenfield in Detroit. Under her leadership, her Weight Watchers Group Inc. became the largest franchisee for the national WW International Inc. She operated franchises in 14 states as well as Canada and Mexico with 4,200 employees. But the COVID-19 pandemic crippled her operations, leaving Mark to close 30%-40% of her operations. She sold her franchises back to WW International in 2021 for an

undisclosed amount. Michigan Secretary of State Jocelyn Benson said the loss was heartbreaking. “Florine was the ultimate Woman from Michigan, blazing a trail and mentoring all of us,” Benson wrote in a message on X, formerly Twitter. “Her final statement was a call for peace. May we all honor her life with our commitment to that shared mission.” Gov. Gretchen Whitmer in a statement called Mark a “fearless trailblazer and devoted friend.” “An incredibly savvy and successful businesswoman, she was just as committed to giving back, working with the Children’s Hospital of Michigan, Detroit Institute for Children, Women of Tomorrow and other organizations. She was an icon and a leader who could encourage, empower, motivate, and inspire individuals to achieve their goals and be their best selves,” Whitmer said. Sen. Debbie Stabenow focused on Mark’s role as a leader. “Florine was a leader in so many amazing ways — in business, in Detroit, in the Jewish community, as a role model for women and as the matriarch of a close and loving family.”

By Anna Fifelski

For the first time in a decade, Oakland County has a brand new bank. After three months of preparation, Community Unity Bank in Birmingham is officially open to the public after a ribbon cutting ceremony Wednesday. CUB is only the second new depository bank in Michigan in the last four years, according to the state. The state-chartered bank had what CEO and co-founder Andy Meisner called a “soft launch” event on June 26, where it announced the new location at 34040 Woodward Ave. in Birmingham. In the months since, the bank has already gathered around 50 customers, including small business owners and retail investors. Meisner said the bank’s focus on small businesses and its commitment to diversity will help it to defy the trends of bank closures across the state. “That’s something that customers will notice about our team, that we are a diverse group much like the community that we’re serving,” Meisner, a veter-

an politician from Oakland County, said. Those factors, coupled with a welcoming physical environment, sets Community Unity bank apart from other, larger banks in the area, he said. “What we think people are missing is that old human touch, that chance to come in and talk to somebody face to face,” Meisner said. “To sit down, really to be heard and to really have a partner in managing their financial situation and taking that next step, which is something that we think is a little bit unique for us.” To manage its overhead expenses, Meisner said the bank is leasing the Birmingham space, but has hopes to expand its reach in the future, though there are no plans for additional brick-andmortar locations for the next three years. CUB’s focus will remain on Oakland County and then expand through the metro Detroit area, and the Birmingham location leaves it poised to do so. As CUB becomes more successful, Meisner said the bank will build out their team, which presently includes 12 bankers and executive officers.

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Hamtramck-based Metropolitan Baking Co. was founded in 1945 by George Kordas and is being run by the founder’s son and grandson. | JOHN SOBCZAK

Metropolitan’s growth is on a roll Hamtramck bakery, home of the Coney dog bun, begins 30,000-square-foot expansion | By Jay Davis An age-old family bakery is finally expanding two years after setting the plan in motion. Kordas’ Metropolitan Baking Co. is starting work on a 30,000-squarefoot addition on its 20-acre property at 8579 Lumpkin St. in Hamtramck. The addition is slated to open in June 2024. Sterling Heightsbased Roncelli Inc. will serve as the

general contractor on the project. The 78-year-old company, founded in 1945 by George Kordas, for decades has produced the original Coney Island Steamers hot dog buns for Lafayette, American, Leo’s, Kerby’s and National Coney Island restaurants. The addition being constructed to the north of the company’s cur-

rent facility will add 25 new jobs, bringing Metropolitan Baking Co. to 125 employees total. George Kordas, Metropolitan Baking Co.’s president and the grandson of its founder, said in a press release that the move furthers the company’s commitment to the area. “Every day we work is another

Strikes emblematic of new era of labor By Dustin Walsh

Another 3,700 workers walked off the job at Detroit’s three casinos last week, joining the roughly 9,000 UAW auto workers, about 34,000 nationally, and 1,100 UAW workers at Blue Cross Blue Shield of Michigan in striking their employers. Pent-up frustration with stagnant wages have combined with sharp inflation to push unionized workers to press harder for bigger gains than at any time in recent memory — and that pressure is particularly keen in Michigan and

has been 40 years in the making. Michigan’s workforce has been on a well-being decline relative to the rest of the country for the entire life of most millennials, the largest population in the workforce. Michigan is now one of the poorest states in the nation — a sharp reversal from the powerhouse the state was during the 20th century. And there’s no sign of improvement. Michigan ranks 49th in the U.S. for population growth, and suffers from an overconcentration of declining manufacturing might and an underconcentration in job sectors that are actually growing — like IT, finance and business services. The result is a building frustration among workers left behind. At the same time, a still-tight hiring

company, during which it added national brands, restaurants and food chains to its client base, Kordas said. The bakery has clients throughout the U.S., and its products are sold in destinations including Yankee Stadium and on the Las Vegas strip. See BAKERY on Page 18

Interest rates cause pain for Rocket, UWM

ANALYSIS

Stagnant wages, sharp inflation driving workers’ demands

opportunity for our team to contribute to the growth of the company and of our commitment to Hamtramck and to Detroit,” Kordas said. “We continue to take pride in being a Hamtramck/Detroit original, distributing our products across the state and all over the country.” The expansion comes after several years of strong growth for the

But companies may realize long-term gains By Nick Manes

Picketers gather outside Greektown Casino just after noon on Tuesday. | JAY DAVIS

market and the Teamsters’ success in threatening a shutdown of UPS in August that resulted in big wage wins have also emboldened workers looking for more. The strikes have already done short-term economic damage, but their long-term impact — and how contagious they might turn out to be — is still to play out. That will have consequences for the unions, the companies they work for and Michigan’s competitiveness. See STRIKE on Page 21

Southeast Michigan mortgage companies are likely to continue facing short-term challenges amid rising interest rates, but could find themselves emerging stronger, according to one industry analyst. In a new investor note published Oct. 16, Jay McCanless — senior vice president of equity research at Los Angeles-based investment banking firm Wedbush Securities — wrote that “it’s still too early to get overly bullish on the major originators,” such as Detroit-based Rocket Companies Inc. and Pontiac-based United Wholesale Mortgage. “But we would note that both are likely gaining market share as smaller competitors fall by the

wayside, which could put them in enviable positions once the mortgage market starts to turn for the better,” McCanless wrote. That opinion comes as mortgage interest rates continue to hit levels above 7.5 percent not seen in a generation, and as home prices — both locally and nationally — continue to escalate amid limited housing inventory. The current landscape “is putting incremental pressure on an already strained mortgage origination market,” according to McCanless. Rocket Companies (NYSE: RKT) declined to comment for this report. A spokesperson for UWM (NYSE: UWMC) did not respond to a request for comment. See RATES on Page 20 OCTOBER 23, 2023 | CRAIN’S DETROIT BUSINESS | 3

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REAL ESTATE INSIDER

Former Universal Mall site in Warren for sale

he owner of the former Universal Mall in Warren has put it up for sale for an undisclosed price. The mall — today known as Universal Shopping Center at 12 Mile and Dequindre roads — opened in the mid 1960s and was repurposed into a power center in the mid- to late2000s, shedding its traditional mall enclosures and becoming an open-air strip mall. It is currently Kirk Pinho owned by Royal Oak-based investor and developer Dennis Bostick, and it’s being marketed for sale by George Abro and his Troy-based Altitude Commercial Real Estate. Emails were sent seeking comment on the effort to sell it. The property has some 410,000 square feet of space across a 47.5-acre site, according to CoStar Group Inc., a Washington, D.C.-based real estate information service. When it opened in 1965 at the cost of about $20 million, it had some 752,000 square feet, Crain’s reported in 1999. Demolition to turn the property

The Belle Isle Boat House building on Wednesday, Oct. 18, 2023. | KIRK PINHO

Detroit’s Belle Isle Boat House is in limbo By Kirk Pinho

The former Universal Mall property in Warren has hit the market for sale for an undisclosed price. | COSTAR GROUP

into an open-air shopping center started in 2008. Current tenants include Kroger Co., Marshall’s, Petco, Starbucks, Del Taco, Target, Burlington and others. Universal is not the only former suburban mall to hit the trading block recently. The former Tel-Twelve mall

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property in Southfield last year sold for $45 million to a new ownership group. It was “demalled” starting in 1999 and a predecessor of New York Citybased RPT Realty, Ramco-Gershenson Properties Trust, sold it last year for $45 million to Chicago-based real estate private equity firm Kaufman & Jacobs LLC.

DNR should prevail in finding grants and other opportunities for funding to keep this one up and running,” said David Carleton, who was one of those responsible for the redevelopment of the Grand Army of the Republic building on Grand River Avenue downtown. As for the boat house, a partial ceiling collapse last year canceled weddings and other events. There are also concerns about exterior plaster, balcony slabs and sections of the roof, DNR officials said Thursday. The Alpheus Chittenden-designed building had been home to the Detroit Boat Club, which dates back to 1839. It is at least the sixth clubhouse the club had, and the third on the island (two previous clubhouses were lost to fire). The club left the city for St. Clair Shores in the mid 1990s, following a 1992 bankruptcy. The city booted the club for two years of missing rent. The Belle Isle Boat House is about 1.5 miles west of the Detroit Yacht Club building, which opened in 1922 and was designed by architect George Mason. The state, which took over management of the park from the

Members of the public pushed back against a potential demolition of the Belle Isle Boat House on the 982-acre island park in the Detroit River. During a nearly two-hour meeting of the Belle Isle Park Advisory Committee on Thursday morning, concerned attendees expressed reservations about the Michigan Department of Natural Resources possibly tearing down the 1902 building, which has fallen into disrepair over the years. The committee, which lacked a quorum, did not vote on a resolution that would allow the Friends of Detroit Rowing nonprofit to place a temporary structure in the building’s parking lot to store equipment and operate out of. Michele Hodges, the outgoing chair of the advisory committee, said during the meeting that the primary focus has been on how the Friends of Detroit Rowing “can continue their current operations by establishing a temporary facility.” “Demolition is not being discussed at this time, and no decisions have been made,” Hodges, who is leaving her role as the founding president and CEO of the Belle Isle Conservancy, said. However, during a public comment session, 10 people spoke, largely opposed to raz- — David Carleton ing the 121-year-old building near the Belle Isle city in the lead up to Detroit’s mubridge. The issue was raised nicipal bankruptcy in 2013-14, Wednesday after an earlier Belle has estimated in recent years that Isle Park Advisory Committee the building would cost at least agenda for Thursday morning’s $43 million to fully restore, almeeting included a voting item though an estimate provided by a on demolition of the building, al- state official Wednesday clocked though that agenda was later re- in at $54 million. Other estimates vised to include the temporary have come in much lower, some structure approval instead of who opposed a potential demolition said Thursday. demolition. There is about $23 million in “There are a lot of things that need to be done on Belle Isle and American Rescue Plan Act of 2021 getting rid of the historic build- funding for Belle Isle, although ings should be the lowest priority $10 million of that is specifically of what you do,” Michael Betzold earmarked for the HVAC system at the Belle Isle aquarium and said. “I think the demolition of this conservatory. Approximately $2 building would be a terrible in- million of that ARPA funding is justice, a terrible loss and the for the boat house.

“I think the demolition of this building would be a terrible injustice...”

4 | CRAIN’S DETROIT BUSINESS | OCTOBER 23, 2023

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EDITORIAL

Unified business push in Lansing a good sign

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our major Michigan business groups are pulling together to get the Legislature to tap the brakes on some major moves that would affect Michigan’s business competitiveness. That’s a good thing, and not just because of the issues at hand. As Crain’s senior reporter David Eggert reported earlier this month, the Michigan Chamber of Commerce, Michigan Manufacturers Association, the Detroit Regional Chamber and the Grand Rapids Chamber have banded together to offer a unified voice to lawmakers on four specific issues. Those include Democrat-led pushes for mandatory paid family and medical leave, a dramatic reworking of clean-energy requirements, a move to reclassify independent contractors, and a measure that would let municipalities set local minimum wages, benefit levels and other workplace rules. These have been key priorities for Gov. Gretchen Whitmer and they are among a raft of changes Democrats have pushed now that they have control of the levers of power in Lansing. We’re on record as urging restraint on many of these issues, especially at a time

of such uncertainty caused by a massive UAW strike, a fraught transition of the electric vehicle industry, not to mention a new era of global tension and conflict. Trying to ram through so many drastic changes before this year’s legislative session ends is a recipe for uncertainty, if not

disaster. But the new consortium of business groups is encouraging for another reason. The various chambers working in concert to relay the legitimate concerns of their members to political power brokers isn’t something that always happens in

Michigan. Each of the organizations has historically had its own political bent, and they haven’t always been on the same page. The new “Great Lakes Growth” consortium can’t help but raise the voice of the business community in Lansing and make the case to Democrats that these issues matter for the future of our economy. It also bridges age-old divides in Michigan, especially bridging political gaps that have separated metro Detroit and West Michigan. Business is business, whether it’s in Grand Rapids or Detroit, Kalamazoo or Ann Arbor. While each region has its self-identity and distinctions, many of the worries are the same. Finding those areas of common ground on which businesses can agree and all rowing in the same direction can only help the business community get Lansing to listen. A healthy and stable Michigan business climate and economy is good for everybody in the state. So is a common-sense, centrist, pro-business voice in a governing process that only seems to grow more messy and partisan. This new consortium is a step in the right direction toward those goals.

COMMENTARY

Staffing mandates at nursing homes will hurt care Thousands of Michigan residents could be impacted in the coming months when skilled nursing facilities are forced to reduce the number of beds available to meet the federal government’s proposed staffing mandate. This is one of the alarming findings from the Health Care Association of Michigan’s analysis of the far‐reaching consequences of the mandate. On Sept. 1, the Centers for Medicare and Medicaid Services issued a staffing mandate proposal to establish the minimum time certified nurse aids and registered nurses must spend daily with nursing facility residents. A close look at the mandate shows the many ways the government is setting an impossible standard that lacks awareness of real‐world situations and — most worryingly — could limit access to care.

Unrealistic If implemented as introduced, the vast majority of nursing facilities in Michigan would not meet the requirements. the Health Care Association surveyed its members and accessed Michigan data through our national association to get a clear understanding of how the staffing mandate would impact our state: 71% of skilled nursing facilities in Michigan would not meet the CNA requirement of 2.45 hours per resident day, 41% of skilled nursing facilities would not meet the RN requirement of .55 hours per resident day, and almost no skilled nursing facility

would meet the 24/7 RN requirement.

Unsound Also troubling is that the mandate discounts the vital role licensed practical nurses play in skilled nursing facilities. Residents rely on three types of direct care workers: certified nurse aids, licensed practical nurses and registered nurses. The federal mandate requires facilities to have a specific number of CNAs and RNs, but they completely ignore LPNs. This makes no sense. LPNs are a critical part of the staff and should be counted toward meeting any required staffing ratio.

Unfounded The shortage of direct care workers in long‐term care is well documented. Throughout the COVID‐19 pandemic, Michigan lost more than 10,000 facility caregivers, which is 16% of that workforce. Since then we have made slow but steady progress to rebuild the workforce. By increasing wages, strengthening benefits, creating flexible schedules and more to fill open positions and retain current employees, the sector now has approximately 8,000 positions to fill. However, as we strive to get staffing numbers back to pre‐ pandemic levels, the government now demands that we hire over 3,000 additional caregivers in our state to meet an unfounded staffing ratio, without providing any real rationale for the numbers or

means to meet the requirements. There’s no way to make this work. We can’t hire nonexistent workers.

Unfunded The mandate does not include any meaningful resources to support it. If qualified workers magically appeared, it would cost Michigan facilities more than $107 million to meet the CNA hours mandate and approximately $32 million to meet the RN mandate. Meeting the 24/7 RN requirement incurs additional costs, putting the total cost to implement the mandate in Michigan close to $145 million annually.

Unsafe The mandate also calls for significant citations, fines and potential removal from the Medicare/Medicaid program if staffing requirements are not met. When providers can’t hire enough staff, we will be forced to reduce the number of beds available. To comply with the mandate today, we would have to take more than 7,000 resident beds out of service, according to data from professional services firm CliftonLarsonAllen LLP, putting thousands who need skilled nursing care at risk. This will also cause a domino effect, overwhelming our entire health care system, as more hospitals will be over capacity with patients waiting to be discharged to nursing facilities.

Write us: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited for length or clarity. Send letters to Crain’s Detroit Business, 1155 Gratiot Ave, Detroit, MI 48207, or email crainsdetroit@crain.com. Please include your complete name, city from which you are writing and a phone number for fact-checking purposes.

Real solutions The staffing mandate ignores a basic fact: There aren’t enough workers to hire. Rather than a mandate that could jeopardize seniors’ access to care, nursing facilities need supportive solutions that will help us build a pipeline of dedicated caregivers. The government should focus on providing funding and programs to increase educational options and incentives to build careers in long‐term care. We also need commonsense immigration reform to expand the ability for international nurses and other caregivers to come to the United States. Let’s focus on championing these efforts instead of issuing a misguided, back‐end mandate that cannot be met and will not improve care for Michigan residents. From the members of the Health Care Association of Michigan (HCAM) Board of Directors: Manda Ayoub, Pomeroy Living; Josh Baumol, Villa Health Care; Michelle Berryman, Medilodge/Prestige; Henry Boutros, Illuminate HC; David Duffy, The Orchards of Michigan; Robin Miller, Mission Point Healthcare Services; Raj Patel and Hemant Shah, Optalis Health Management Group; Mike Perry, Nexcare Health Systems/WellBridge Group; Paul Pruitt, Majestic Care; Catherine Reese, Vibrant Life Senior Living; Jeff Schade, The Peplinski Group; Will Smith, Vista Grande Villa; Trish Tomkinson, Ciena Healthcare Management; and Destiny Wilkins, Jackson County Medical Care Facility

Sound off: Crain’s considers longer opinion pieces from guest writers on issues of interest to business readers. Email ideas to Managing Editor Michael Lee at malee@crain.com.

6 | CRAIN’S DETROIT BUSINESS | OCTOBER 23, 2023

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Michigan Central launches diversity fellowship program By Anna Fifelski

Michigan Central and Newlab on Oct. 16 launched a new fellowship program that supports startups with minority and female founders. The Founder Fellowship Program is backed by the Michigan Central Equitable Ecosystem Fund, a $500,000 initiative designed to create a landscape where all founders have an equal chance to shape the future of tech and to ensure that pathways to jobs, resources and opportunity are accessible to people from all backgrounds. The Equitable Ecosystem is supported by Michigan Central's public-private partnership with the city of Detroit and the state of Michigan through the Michigan Strategic Fund. Those accepted to the fellowship will have one year of membership in Newlab at Michigan Central and an award of $30,000. Fellows come from underrepresented ethnicities, sexual orientations, gender identities, disabilities, cultures and economic experiences. Half of Newlab at Michigan Central’s 47 startups have at least one founder who is either a woman, African American or Latinx, the nonprofit and wholly owned subsidiary of Ford Motor Co., said. “The statistics speak volumes: Women, Black and Latinx founders receive only a fraction of the venture capital funding compared to their white male counterparts,” Katie Soven, head of membership for Newlab at Michigan Central, said in a press release. “These underrepresented communities are confronted with systemic challenges that have not been adequately addressed by the traditional tech startup space. Though 50 percent is a good start, more must be done to help shrink the gap by helping more founders not only enter the ecosystem but thrive in it. At Newlab, we are committed to dismantling these barriers and fostering an inclusive community that empowers all entrepreneurs to succeed.” To be eligible, startups must address issues in mobility, energy or materials. Fellows will also have access to the Newlab at Michigan Central facilities in Corktown, where they will participate in entrepreneurial programming and workshops that address pitching skills, commercial deal-structuring and more meant to focus on the challenges underrepresented founders may face, according to the press release. “At Michigan Central, startups, the community and industry are coming together to solve some of the world’s biggest mobility challenges, and not just physical mobility but social, as well. A key pillar of our vision is ensuring our community is diverse and inclusive — both crucial elements for fostering innovation and driving real change in the tech ecosys-

tem,” Joshua Sirefman, CEO of Michigan Central, said in the release. “We know the startup journey is challenging and that there are distinct hurdles along the way, especially for founders from underrepresented communities. This program is a key step in removing some of those barriers to help innovation thrive.” The Michigan Central Equitable Ecosystem Fund also supports the Community Builders in Residence Program and the Builders & Backers Fall Idea Accelerator. As part of

the Community Builders in Residence program, Newlab at Michigan Central hired two community builders-in-residence. The Builders & Backers bootcamp allows founders to test their ideas with a $5,000 pebble grant, after which Michigan Central will help connect the founders with resources to support their businesses. In the past 53% of their founders have been women and 57% have been Black, indigenous, or people of color, according to the press release.

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The walkway from the Southwest Greenway Parking to the train station during sunset on Michigan Central’s campus. | HELMUT ZIEWERS

OCTOBER 23, 2023 | CRAIN’S DETROIT BUSINESS | 7 10/3/23 4:04 PM

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POPULATION GROWTH

CRAIN’S PHOTO ILLUSTRATION/NIC ANTAYA PHOTO

Mic

‘Missing in action’: Can Michigan get the young people it needs? As state strives to grow its population, finding quick fix to reverse a downward trend won't be easy | By John Gallagher

mily Abramczyk, a senior at Albion College in south central Michigan majoring in political science and history, could easily see law school and future work in Washington, D.C., after she graduates next year. “I’d love to go to D.C. being a poli-sci major,” she told Crain’s recently. “I did an internship down there two summers ago and loved the area, loved the opportunities with the think tanks and obviously Congress being right there. I’m more interested in the international side of things so that’s why D.C. is particularly appealing.” A classmate, Albion junior Monika Rosas, is also thinking of leaving Michigan once she gets her degree

in psychology in a couple of years, aiming for work in the nonprofit field. “Only one place that I find really appealing is Chicago,” she says. “I feel that there’s a lot of cultures there that I would like to be able to experience that I’m not able to experience here.” Individual choices like these, writ large, illustrate the problem facing a state with stagnating population and a dwindling cohort of educated and talented young people. In June, Gov. Gretchen Whitmer established the Growing Michigan Together Council and tasked it with figuring out how to keep and attract more people to Michigan, especially tech-savvy young people.

Projection of Michigan population, 2020 to 2050 Michigan’s total population is projected to peak in 2046 at 10.54 million people, after which it will begin to decline. The number of children is expected to rise and fall slightly before reaching its lowest level in decades by 2050. Children 0-17 $10 million 8

Working age 18-64

Retired 65 ad older

1.81M

2.06M

2.26M

2.36M

2.37M

2.35M

6.11M

6.00M

5.95M

6.00M

6.05M

6.12M

6.15M

2.15M

2.06M

2.04M

2.07M

2.06M

2.01M

2020

2025

2030

2035

2040

2045

2050

6 4 2 0

Source: University of Michigan Research Seminar in Quantitative Economics, Citizens Research Council

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8 | CRAIN’S DETROIT BUSINESS | OCTOBER 23, 2023

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POPULATION GROWTH The group’s goal, in part, is to harness the plans and intentions of people like Albion junior Kearney Miller, who is setting her sights on nonprofit work in or near Detroit, where she spent this summer interning with the Detroit Riverfront Conservancy, which builds and maintains the famed RiverWalk. “I can see myself on the east side of the state definitely,” she says. “I’m from Kalamazoo. Just being (in Detroit) this summer I can see myself there long term. I’m definitely drawn to the Detroit area.” Whitmer has appointed economic researcher Hilary Doe as the state’s first chief growth officer, overseeing and coordinating the work of the population commission and its advisory councils and work groups. In an interview, Doe said the work groups are expected to roll out recommendations beginning this fall and the commission will share the findings with Whitmer in early December. “Obviously we’re wrestling with issues from infrastructure, placemaking, the pre-K-12 system, higher education. It’s a broad mandate,” Doe told Crain’s.

CRAIN’S PHOTO ILLUSTRATION/NIC ANTAYA PHOTO

Michigan growth slows

The population question, especially the role of educated 25- to 34-year-olds, looms as crucial to the state’s future prosperity. A May 2023 report published by the nonprofit Citizens Research Council lays out the problem in stark terms. Created with the research firm Altarum, the report, “Michigan’s Path to a Prosperous Future: Population and Demographic Challenges and Opportunities,” puts the problem in blunt terms: The state’s population growth has lagged the nation for 50 years. Michigan’s population growth, once so robust early in the 20th century with the booming auto industry, began to slow in the 1970s as the state’s signature industry began its long, debilitating loss of market share. In the decades since the ’70s, Michigan has slid from the seventh most populous state to 10th. Over the 20 years from 2000 to 2020, Michigan grew more slowly than all but one state. Nor is a turnaround expected anytime soon. “This slow growth path is projected to continue,” the report notes. “Projections to 2050 show that Michigan is on a path to continue to grow more slowly than the rest of the country, and to begin to lose population in the 2040s.” Moreover, Michigan’s population is older than average and getting older. By mid-century, Michigan’s population of children and young adults will shrink by an estimated 6%, while the cohort older than 65 will swell by 30%. As Michigan gets older, it’s getting poorer relative to the rest of the nation. And the losses are particularly worrisome among the educated, talented young people who have the skills and ambition to go where opportunities take them.

Envisioning their future Four Michigan college students on where they see themselves after graduation:

Emily Abramczyk

Kearney Miller

Monika Rosas

Emily Hoyumpa

Senior, Albion College “I’d love to go to D.C. being a poli-sci major. I did an internship down there two summers ago and loved the area, loved the opportunities … .”

Junior, Albion College “I can see myself on the east side of the state, definitely. Just being (in Detroit) this summer I can see myself there long term. I’m definitely drawn to the Detroit area.”

Junior, Albion College “Only one place that I find really appealing is Chicago. I feel that there’s a lot of cultures there that I would like to be able to experience … .”

Third-year student, Michigan State University “When you graduate, you’re looking for something new, and for a lot of students these days it’s not settling in their hometown or settling in their state.”

As Glenn Stevens, head of MICHAuto, an arm of the Detroit Regional Chamber dealing with mobility issues, puts it, “We’re not losing all the college grads we think we’re losing, but we are losing the ones that matter. We’re not retaining our tech talent and we’re not attracting it.” Or as Lou Glazer, co-founder and president of the Michigan Future Inc. nonprofit, says, “Michigan will get younger and better educated, or it will get poorer.”

The question, of course, is what policies to pursue. There is little agreement.

fessionals, and Michigan has not good cities, end of story.” That emphasis would translate into government fostering more public transit in cities like Detroit and Grand Rapids, more urban redevelopment, more support for education and more dollars for the arts and recreation, as well as a progressive political environment that welcomes all regardless of race or gender or immigrant status. Major metros — Seattle, Washington, D.C., and others — are “talent magnets,” Glazer says. But he sees little if any attention to that in Michigan, citing the state’s dismal record on supporting public transit systems over many decades as emblematic of Michigan’s neglect of cities. “That’s the lesson that neither party has ever understood,” he says. “The business community hasn’t understood that. Michigan is just missing in action with all this stuff.” Doe, the state’s growth officer, hints that the governor’s commission is more likely to recommend the approach Glazer outlines than the low-tax, low-regulation climate that Anderson favors. “We’re really starting from data and looking at comparable states and cities that have done well like Colorado and Minnesota,” Doe told Crain’s. “We’re going to grow Michigan by being the best possible Michigan. Our own history points to a lot of strong growth when we had economic opportunity for everyone, pathways to economic growth. That paints a different picture than other states may have followed.” Anderson remains skeptical of a more activist, urban-oriented program. “Absolutely the last institution that you could rely upon to create a cool thing is the government,” he says. “Governments are notoriously bad at this.”

College’s Gerald R. Ford Institute for Leadership in Public Policy and Service, said 14 of the 19 graduates of his program last year remain in Michigan. And over the years, more of his graduates are gravitating toward Detroit as the Motor City’s reputation has recovered somewhat. But interviews with students make clear that job opportunities and an appealing lifestyle rank above than any other considerations. Emily Hoyumpa, president of student government at Michigan State University and a member of Whitmer’s population commission’s work groups, grew up in Shelby Township but is looking at a lot of opportunities including Washington, D.C. “It depends on a lot of different factors,” she says. “When you graduate, you’re looking for something new, and for a lot of students these days it’s not settling in their hometown or settling in their state, it’s going out and seeing the world for what it is. Going to college, getting a job, or taking a couple years to go and travel.” And Albion students Abramczyk, Miller and Rosas all stress the importance of a walkable urban lifestyle in wherever they end up. “I think a big one for me would be safety in a city, being able to walk around and feeling like I can be able to go out to places and don’t have to go with a big group all the time,” Abramczyk says. “I really enjoy walking around. Something I liked about D.C. was how many green spaces they have. It’s a very walkable city.” Rosas seconds that. “I like being able to walk around downtown in those sorts of areas,” she says. And Miller adds, “I would definitely say somewhere where there’s always something to do, whether that’s a public event or just different places to go. I just want to be somewhere where I feel I belong and I can contribute to the community.” However difficult it is, translating these students’ concerns into action with public policy will determine whether Michigan’s population starts to grow again.

Who to emulate

Patrick Anderson, principal and CEO of Anderson Economic Group, argues that Michigan needs a lower tax, lower regulation political environment — in short, to become more business friendly. He cites states such as Texas, Florida, and Tennessee as models. “We’re losing people systematiA real cost cally to states that generally have More than bragging rights are at lower taxes, that generally have a freer government structure, and stake. America apportions political we’re gaining them from places power by population, so states like New York and Illinois that growing faster than Michigan have have bigger government strucsiphoned away some of Michi- tures. It’s not random. It’s systemgan’s clout in Washington, D.C. atic. And we need to take that into Michigan sent 19 representatives account.” Anderson credits Whitmer with focusing on the issue. “It’s the right problem to ask about. On this I agree with Gov. Whitmer and business leaders — Hilary Doe, state’s chief growth officer who say we need to look at this. Beto the U.S. House of Representa- cause your fundamental economtives in the 1960s; today it sends ic asset is people. It’s always been just 13, and the state stands to lose that. Unambiguously Michigan another one after the 2030 Census. has not been doing a good job beOut-migration from Michigan to cause people are leaving the state. “We need to do something difsunbelt states costs real dollars, too. A 2023 study by the East Lan- ferent.” But Glazer of Michigan Future sing-based Anderson Economic Group found that a net loss of Inc. cites Minnesota as a state with 7,800 Michiganders moving to higher taxes and more governFlorida in 2020-21 cost the state ment involvement in the economy $1.4 billion in taxable income. that outperforms nearby states That translates directly into less and is gaining population. His conclusion: Talented young peomoney to pay for local services. As the Citizens Research Coun- ple flock to metro areas like Mincil report emphasizes, these costs neapolis and Chicago that offer will grow only worse in an aging abundant jobs and youth-orientstate as “the shift to fewer workers ed lifestyles and ignore more talkper retiree presents challenges for ed-about concerns like weather. the workforce, customer base, and It’s a pitch for what a past Michigan program once called “cool cittax base.” In a rare upbeat note, the report ies.” “When you look at 25- to found that strategies to attract and retain more young people “offer 34-year-olds where they’ve conthe potential to shift the state’s centrated, it’s in the big metros all population and demographic over the country, Glazer says. “Cities trump weather for young propath.”

“We’re going to grow Michigan by being the best possible Michigan.”

What matters most Of course, many young people in Michigan do choose to remain in the state after school. Eddie Visco, executive director for Albion

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3 hest: on: %

t: 1.9%

COMMENTARY | POPULATION GROWTH

All Michiganders play a role in improving state’s growth KYLE E/UNSPLASH

tion and projected to get older. ichigan government and That affects our workforce and our civic leaders are in a time prospects for economic growth. of reckoning. It was reBefore this period of stagnant vealed this month that Michigan’s growth, Michigan’s rankings on per capita personal income hit a many measures of well-being were new low relative to the national avamong the leading states. Good erage. This came on top of earlier paying manufacturing jobs benefitfocus on Michigan’s stagnant poped the working middle class to ulation growth. To understand how the state has Eric Lupher is make our income levels among the highest in the nation. Our K-12 fallen so far and think about pre- president of schools fed some of the best public scriptive actions to remedy the de- Citizens universities. We found ways for incline, it is useful to recall the story Research dustry and our beautiful landscapes of how to boil a frog. Council of of lakes and forests to coexist. For those not familiar with this Michigan. Michigan’s relatively high tax metaphor: Because amphibians are cold-blooded, they react poorly to im- rankings prior to this period of stagnant mediate temperature changes. If you at- growth was seen as a detriment to attracting tempt to boil a frog by bringing water to a businesses and people. Tax policy changes boil and placing a frog in it, the frog jumps were implemented at the same time popuout. But if you place the frog in cold water lation growth was slowing. Now Michigan’s and slowly turn up the heat, it doesn’t know state and local relative tax burden ranks 46th among the states. it is being boiled and sits there passively. Taxes pay for public services. The decline Michigan’s population has been about 10 million people for the past 50 years and ex- in tax effort directly affected the ability of perts tell us it will stay there, and perhaps state and local governments to provide pubdecrease some, given our current demo- lic services. So, it should not be surprising that the degraphics. This matters because many of our younger population has left the state look- cline in tax burden has resulted in similar ing for opportunities elsewhere. Michigan’s declines in our competitiveness on several population is among the oldest in the na- measures of the well-being of Michigan’s

citizens or the infrastructure that serves them. We find ourselves in the bottom third of national rankings for many measures, including 36th in K-12 educational outcomes, 39th in household income, 39th in health outcomes, 45th in electric service reliability, and 47th in road condition. Our surrounding, competitor states have better balanced tax competitiveness and efforts to provide quality services. Like the frog, those of us who have been here have accepted that conditions have marginally worsened a little at a time. We have not raised flags to say the deterioration is not acceptable and is contrary to our ability to compete. The heat was slowly being turned up and we didn’t feel it becoming uncomfortable. But with increasing awareness of our lost competitiveness, we shouldn’t be surprised that businesses and individuals considering

Michigan as a home have found the state less than attractive. They are the frogs being placed in the hot water and they see that things are better elsewhere. The first step to fixing a fault is recognizing that there is a problem. We must turn down the heat. The papers published by the Citizens Research Council of Michigan and Altarum over the summer help to identify these problems and the interconnectedness among them. Recognition of these issues is not new. Groups, often focused on their single issues, have been working to improve service delivery, but their efforts have been hampered sometimes by the general, widespread lack of recognition that we’re falling behind and it matters. Perhaps now, more will recognize the need to invest in ourselves if we want others to invest in Michigan.

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Working to advance racial equity and economic mobility for the next generation in the Great Lakes region.

JoyceFdn.org OCTOBER 23, 2023 | CRAIN’S DETROIT BUSINESS | 11

POPULATION GROWTH | COMMENTARY

There’s no one-size-fits-all strategy to find success

KARI SHEA/UNSPLASH

“I

about it, people don’t move to Tenlove Grand Rapids! Why nessee; they move to Nashville. doesn’t everyone live in They don’t move to Colorado; they Grand Rapids?” journalist move to Denver. And they don’t and author Malcolm Gladwell move to North Carolina; they move asked on a recent “Revisionist to Raleigh. To be clear, of TennesHistory” podcast following his see’s growth since 2010, 59% ocpresentation at Tech Week Grand curred in its two largest metros Rapids. There is certainly a lot to love Randy Thelen (Nashville and Memphis); Coloraabout Greater Grand Rapids and is president and do’s was 69% (Denver and Colorado Springs); and North Carolina other vibrant regions across our CEO of The state. Having industrialized rela- Right Place, an was 76% (Charlotte and Raleigh). And if you are curious, Greater tively early and having built one of economic Grand Rapids accounted for 64% of the largest economic clusters in development Michigan’s growth in that same peworld history, Michigan is home agency in riod. to incredible quality of life assets Grand Rapids. In other words, people don’t — numerous colleges and universities, beautiful downtowns, almost count- move to a state. They move to dynamic, less waterfront communities, remarkable growing regions that offer a combination of variety of outdoor recreation opportunities, exciting career-growth prospects and exunparalleled museums, zoos and perform- ceptional quality of life attributes. Each Michigan region has unique ing arts venues, and so much more. And we are a large state, one of only 10 strengths. Building on these while growing states with more than 10 million people. the industry clusters of the future will offer We have plenty of advantages in Michigan. quality jobs to retain our world-class gradEven with these many advantages, Mich- uates and attract talent. And it’s not enough igan has been stuck in neutral for nearly 50 to merely participate in these high growth years without meaningful population sectors, we must lead them. This requires a growth. As Michigan tackles its population robust entrepreneurial ecosystem that challenges with renewed energy, we can helps propel early-stage companies to belearn from our thriving regions and other come great success stories. As we push forward on growing our aspirational regions across our country. We can reverse course and return Michigan to state’s population, there is no magical onebeing a population growth state by focusing size-fits-all strategy. We must focus on reon a collection of regional strategies. And in gional efforts to create career opportunities doing so, we will be applying a lesson from and quality of life amenities that will spark robust growth. For regions across the state Gladwell. Why a regional approach? If you think that have suffered population loss, we need

strategies to stem those losses and begin to rebuild. For regions that have gained in population, we need strategies that benchmark the highest growth regions across the country to help reach new, higher levels of performance. In Gladwell’s famous TED Talk on spaghetti, he tells the story of a food scientist, Howard Moscowitz, tasked with creating the “perfect Pepsi” recipe — how much sweetener is needed to create the perfect taste profile. After a year of testing various recipes, Moscowitz went back to PepsiCo and informed them there is no perfect Pepsi, but instead there are numerous perfect

Pepsis — customers did not want one single flavor profile, but instead customer tastes could be found up and down the sweetness spectrum. Since that realization, Pepsi has rolled out countless perfect Pepsis that are found on store shelves today, appealing to a much wider collection of consumer segments than any one flavor could ever please. Similarly, Michigan’s population growth strategy must steer clear of a singular perfect Pepsi approach and instead pursue a wide variety of regional strategies to find our sweet spots, finding a way to treat each region as one of many perfect Pepsis.

Imagine profound investment in teachers, allowing them to be compensated for time spent inside and outside the classroom. Imagine giving teachers more time to invest in their own learning to prepare for classwork, learn new ways of teaching, and mentor (or be mentored) in small groups. Imagine communities ripe with well-funded after-school programs where young people gather, connect, study, and compete in teams. Imagine a deeply humane system that embraces the innovation and optimism of Gen Z, the most diverse and civically engaged generation in our nation’s history. Imagine creating a vision for the state and aligning all Michiganders around it. Schools and state leaders have been advancing important improvements but there is no collective vision. We have 850 school districts,

each with its own infrastructure, priorities, and strategies — all competing against each other for a diminishing pool of resources and attention. It’s the “Hunger Games” model of education, and it’s killing Michigan’s future. Want to make this America’s No. 1 state for economic and population growth? Don’t worry so much about business incentives, marketing campaigns and other pothole filling. Demand transformational change in public education because no other effort to grow population can succeed without this.

When we see these or all the ways we abysmal scores, we need could answer Gov. to realize they are not a Gretchen Whitmer’s measure of our students call to grow Michigan’s but of our state’s educapopulation — by winning tion system. The educajobs and investment and tion equivalent to filling launching a national potholes on crumbling marketing campaign, to highways is what we’re name just a few you’ll Angelique Power is the doing now — increasing hear about — there is one president & CEO of The Skillman millages in suburban disresponse that stands Foundation. Imani Foster is tricts while blaming stuabove the rest: A total re- communication lead for dents, parents and teachthink of our education 482Forward. ers for the results of system. In a respectful twist to the governor’s road systemic decline. Michigan’s outdated and underfunded repair slogan, the single best way to attract education system is the root cause of all that and keep people is to fix the damn schools. The facts are indisputable. While Michi- ails our state’s growth. As members of the governor’s population gan passed a robust education budget this year, our schools have been underinvested council PreK-12 workgroup, we are urging in for 40 years. Our state ranks 36th in K-12 state leaders to advance and fund massive education outcomes, according to the Citi- structural changes that make Michigan a zens Research Council. Results of the 2023 national leader in the design of an excepMichigan Student Test of Education Prog- tional and equitable education system. ress, known as M-STEP, released this month What would that look like? Imagine a statewide curriculum that rathshow just 40.9% of third graders statewide er than teaching young people how to pass passed the English language arts test. Michigan ranks 11th worst in the perfor- tests, teaches them how to learn and adapt. Imagine a system that doesn’t punish mance of students from low-income backgrounds, according to Education Trust-Mid- third graders for reading poorly but gives all west, falling to the bottom five states for students and teachers the tools they need to fourth grade reading among Black students. produce lifetime readers and leaders. Imagine a system that focuses on the The group estimates Michigan is underfunding students from low-income back- whole child, knowing that a student’s mengrounds and English learners by more than tal and physical health is critical to their academic success. $5 billion.

MEGAN LEE/UNSPLASH

For state to succeed, fix the damn schools F

Power, whose Detroit-based foundation puts its resources toward Detroit youth, and Foster, whose nonprofit is dedicated to empowering residents in marginalized communities to transform low-performing schools, serve together on the PreK-12 Education Workgroup of the Growing Michigan Together Council.

12 | CRAIN’S DETROIT BUSINESS | OCTOBER 23, 2023

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Diamond maker files for bankruptcy By Kurt Nagl

Chicago-style hot dog chain Portillo’s next year will open a second Michigan location in Livonia. | PORTILLO’S

Portillo’s picks Livonia site for 2nd Michigan location By Jay Davis

Illinois-based, Chicago-style street food chain Portillo’s is set to continue its expansion into Michigan. The company next year will open a restaurant in Livonia at I-96 and Middlebelt Road. The Livonia eatery would be Portillo’s second Michigan location, following a Sterling Heights restaurant that opened in 2021. The Livonia Portillo’s will operate out of a 7,900-square-foot space and will offer indoor seating for more than 175 guests. The restaurant will also feature a sea-

sonal outdoor patio, with space for an additional 50 patrons. The Livonia Portillo’s will include an indoor pick-up area and double drivethru lanes. The menu features Portillo’s signature items like Italian beef sandwiches and Chicago-style hot dogs. Portillo’s president and CEO Michael Osanloo in a statement said opening the Sterling Heights location was just the start for the company in setting up shop in Michigan. “When we opened our first restaurant in Michigan, we quickly knew we wanted to plant deep-

er roots and expand our footprint in the region,” Osanloo said. “We’ve loved serving the Detroit community since opening in Sterling Heights in 2021, and Livonia gives us even more opportunity to bring our unrivaled Chicago-style street food to both longtime Portillo’s fans and newcomers.” Portillo’s plans to begin staffing the new restaurant before the end of the year. Interested parties can apply online. Established in 1963 by Dick Portillo, Portillo's now has 75 locations in 10 U.S. states. The company also ships to all 50 U.S. states.

A manufacturer of lab-grown diamonds owned by a Detroit-based private equity firm has moved to liquidate with $48 million in liabilities amid several pending legal disputes, according to a bankruptcy filing. WD Lab Grown Diamonds and several affiliates filed petitions for voluntary Chapter 7 bankruptcy this month in the United States Bankruptcy Court for the District of Delaware. WD Diamonds, headquartered in Maryland, is a portfolio company of Huron Capital Partners LLC. The company was founded in 2008 to make “high-quality, precision-made Chemical Vapor Deposition lab-grown diamonds,” according to its website. The gemstones are grown at its lab in Washington D.C. for jewelry, scientific and industrial markets. It holds exclusive global licenses with the Carnegie Institution of Washington. WD Diamonds has just over $3 million in assets, including $1.8 million worth of diamonds, $919,000 in accounts receivable and $339,000 in deposits and prepayments. Its largest creditor is San Francisco-based Tree Line Direct Lending LP, which is owed $30 million. Detroit-based Honigman LLC is listed as a vendor, owed $209,000. Jeffrey Waxman, of Delaware-based Morris James LLP, is

listed as the attorney for the debtor. Waxman did not respond to a request for comment. The company and its affiliates are party to five pending legal actions, including a pair of cases against rival lab grown diamond makers and with the New York and California labor departments over “assessment of services as contractor or employee.” The lure of man-made diamonds over their mined equivalents is the massive cost differential. A lab diamond typically costs 50-75% less than one dug up from the ground. The lure of lab diamonds grew stronger in 2018 when the U.S. Federal Trade Commission ruled that they are on the same plane as those produced by nature. However, this led to a proliferation of lab-grown diamond companies and an eventual market glut. Huron Capital made a “significant equity investment” in WD Diamonds in early 2019, according to a news release at the time. Mike Grunza became CEO of the company last December after serving on the board since 2020. The PE firm did not respond to a request for comment. “The Huron Capital investment is expected to help us significantly expand our capacity in the fast-growing, high-quality segments of both the gem and industrial markets, and build our base of trade partnerships,” Clive Hill, WD founder, said in the release.

KSI Kitchen & Bath acquires Riemer Floors By Jay Davis

KSI Kitchen & Bath’s pursuit of growth continues with its acquisition of another long-standing Michigan business. Wixom-based KSI design company this month announced the acquisition of Bloomfield Hillsbased Riemer Floors Inc. — Michigan’s largest flooring retailer. The privately held, family-owned companies declined to disclose terms of the deal. Riemer Floors sells and installs carpet, vinyl tile and hardwood flooring. The deal allows KSI to offer complementary flooring products and services to homeowners, builders and multi-family unit developers and the opportunity to grow across KSI’s 13 retail locations in Michigan and Ohio. KSI President and CEO Tony Achatz in a statement said the Riemer deal is all about future growth. The move follows KSI’s September acquisition of Rochester Hills-based Henderson Glass. All 41 Henderson employees stayed on following the deal. “We are thrilled to welcome Riemer Floors to the KSI family of brands,” Achatz said. “This strategic move is a testament to our

KSI Kitchen & Bath on Oct. 12 announced the acquisition of Bloomfield Hills-based Riemer Floors. The move comes less than a month after KSI acquired Henderson Glass. | RIEMER FLOORS

continued investment in the growth of our company. By combining our organizations, we aim to deliver even greater value to our customers and strengthen our position as a leader in the building products industry.” Riemer Floors, in a 10,000-square-foot facility at 1865 S. Telegraph Road, has offered its services for more than 75 years. Riemer Floors owner and President Paul Riemer said he’s pleased with the move. “I’m incredibly proud of what our family and team members have accomplished over the years,” he said.All 43 Riemer staffers will be retained, the company said. KSI has more than 120 associates, the release stated. OCTOBER 23, 2023 | CRAIN’S DETROIT BUSINESS | 13

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CRAIN'S LIST | HEALTH INSURERS/MANAGED CARE PLANS Ranked by 2022 Michigan revenue MICHIGAN REVENUE ($000,000) 2022/2021

MICH. PERCENT CHANGE

SE MICH. REVENUE ($000,000) 2022/2021

MICH. ENROLLED MEMBERS 2022/2021

SE MICH. ENROLLED MEMBERS 2022/2021

MICH. ENROLLED MEMBERS IN HMO/ DHMO, PLAN

MICH. ENROLLED MEMBERS IN PPO PLAN

MICH. ENROLLED MEMBERS IN POS PLAN

MICH. OTHER MEMBERS

COMPANY ADDRESS PHONE; WEBSITE

TOP LOCAL EXECUTIVE(S)

BLUE CROSS BLUE SHIELD OF MICHIGAN/ BLUE CARE NETWORK

Daniel Loepp president and CEO 1

$32,800.0

0.9%

$32,800.0 $32,500.0

4,647,334 4,632,657

1,166,544

3,364,481

116,310

PPO, HMO, HSA-eligible products, Medigap, Medicare Advantage, Medicare Part D, commercial prescription drug plans, dental and vision benefits, Medicaid HMO

Mike Jasperson senior vice president, Provider Network and Health Plan Operations

$6,181.7

7.1%

$1,330.6 $1,215.9

1,270,034 1,213,655

254,277 305,000

471,318

56,155

742,561

HMO/POS, Medigap, PPO, Medicare Advantage, DSNP, Medicare PDP, Medicaid, selffunded

3 MERIDIAN HEALTH PLAN OF MICHIGAN INC.

Patricia Graham plan president

$3,206.5 3

14.8%

NA NA

648,381 3 623,977

NA 623,977

Medicaid, Medicare, Marketplace

4 HEALTH ALLIANCE PLAN OF MICHIGAN

Michael Genord 4 president and CEO

$2,270.7

6.1%

$2,238.0 $2,105.9

400,226 398,387

253,048 248,712

191,278

88,287

7,475

113,186

HMO, PPO, EPO, Medicare, Medicaid, DSNP, MedicareMedicaid dual eligible (MMP), ASO/self-funded, network lease

5 MOLINA HEALTHCARE OF MICHIGAN INC.

Terrisca Des Jardins president

$2,131.8

7.4%

NA NA

439,557 428,377 3

439,557

Medicaid, Medicare

6 MCLAREN HEALTH PLAN INC.

Nancy Jenkins president and CEO

$1,128.7

5.9%

$1,128.7 $1,065.9

312,911 304,897

53,299 52,350

18,003

Small Group; Rewards: Platinum, Gold, Silver; Standard: Platinum, Gold, Silver, Bronze; HSA: Bronze ; HRA: Gold - Large Group; POS; HMO; HSA; HDHP - ASO; ASO Captive Arrangement

7 DELTA DENTAL OF MICHIGAN

Goran Jurkovic president and CEO

$1,070.0

14.0%

NA $933.5

5,894,018 5,776,317

NA 2,657,181

Delta Dental Premier, Delta Dental PPO, Delta Dental EPO

1333 Gratiot, Suite 400, Detroit 48207 313-465-1519; aetnabetterhealth.com/michigan

Beverly Ann Allen president Randy Hyun CEO

$568.5 3

16.0%

NA NA

76,996 3 72,852 3

Aetna Better Health of Michigan and Aetna Better Health Premier Plan

9 UPPER PENINSULA HEALTH PLAN LLC

Melissa Holmquist CEO

$370.9 3

5.2%

NA NA

59,308 3 56,983 3

Medicaid, Medicare

Ryan Zikeli market VP, employer group sales Kathie Mancini president, East Central Medicare region

$366.0 3

3.6%

NA NA

24,291 3 27,328 3

Medicare, Medicaid

Dustin Hinton CEO, UnitedHealthcare Michigan and Wisconsin

$304.7

-6.8%

NA NA

875,000 850,000

0 0

UnitedHealthcareChoice, UnitedHealthcareChoice Plus, UnitedHealthcare Options PPO, HRA, HSA, Dental PPO, Dental INO, Dental Select Managed Care, Dental Indemnity, vision, Medicare, Medicaid

12 PHYSICIANS HEALTH PLAN

5 1400 E. Michigan Ave., Lansing 48912 517-364-8400; phpmichigan.com

Dennis Reese president

$157.0 3

4.3%

NA NA

28,620 3 28,692 3

13 PARAMOUNT CARE OF MICHIGAN

Lori Johnston president

$30.9 3

1.7%

NA NA

2,754 3 3,216 3

Medicare, Medicaid, commercial

14 FIRST HEALTH/COFINITY

Ron Gibb COO

$10.0

NA NA

PPOM PPO

600 E. Lafayette Blvd., Detroit 48226 313-225-9000; bcbsm.com

2 PRIORITY HEALTH

2 27777 Franklin Road, Suite 1300, Southfield 48034 800-942-0954; priorityhealth.com

1 Campus Martius, Suite 700, Detroit 48226 888-773-2647; mimeridian.com

1414 E. Maple Road, Troy 48083 800-422-4641; hap.org

800 West Long Lake Road, Suite 600, Troy 48098 888-898-7969; molinahealthcare.com

G-3245 Beecher Road, Flint 48532 888-327-0671; mclarenhealthplan.org

4100 Okemos Road, Okemos 48864 deltadentalmi.com

8 AETNA BETTER HEALTH

853 West Washington St., Marquette 49855 906-225-7500; uphp.com

10 HUMANA INC.

26600 Telegraph Road, Suite 220, Southfield 48033 800-486-2620; humana.com

11 UNITEDHEALTHCARE

26957 Northwestern Highway, Suite 400, Southfield 48034 800-842-3585; uhc.com

106 Park Place, Dundee 48131 734-529-7800; paramounthealthcare.com

6 28588 Northwestern Highway, Southfield 48034 800-831-1166; firsthealth.com, cofinity.net

$32,500.0

$5,769.7

$2,793.3

$2,139.7

$1,985.4 3

$1,065.9

$939.0

$490.2 3

$352.6 3

$353.4 3

$326.8

$150.6 3

$30.4 3

TYPES OF HEALTH PLANS

Researched by Sonya D. Hill: shill@crain.com | This list of leading Michigan insurers/managed care plans encompasses medical, dental, optical and other health care organizations. It is not a complete listing but the most comprehensive available. Unless otherwise noted, information was provided by the companies or the Michigan Department of Insurance and Financial Services. Companies with headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. NA = not available. Health care plan types include: Exclusive Provider Organization (EPO) - Members must use the EPO provider network exclusively and medical services received outside of the EPO network are not covered except for emergencies. Exclusive Provider Arrangement (EPA) - Similar to an HMO. Members must choose a physician who authorizes referrals and arranges hospital admissions. Point of Service Plan (POS) - Members designate a primary care physician but can go outside the network for services. Administrative Services Only (ASO) - Offered by insurers to self-insured employers. NOTES: 1. Plans to retire at end of 2024. 2. Priority Health merger with Total HealthCare completed on Jan. 6, 2020. 3. From Department of Insurance and Financial Services. 4. Genord succeeded Theresa (Terri) Kline as president and CEO in the summer of 2019. 5. Owned by University of Michigan Health and Covenant HealthCare. 6. An Aetna company.

Want the full Excel version of this list — and every list? Become a Data Member: CrainsDetroit.com/data 14 | CRAIN’S DETROIT BUSINESS | OCTOBER 23, 2023

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10/16/23 11:48 AM

Co-working business Bamboo expanding into Ann Arbor By Jay Davis

Detroit-based co-working company Bamboo recently celebrated 10 years in business. To start its next 10 years, the business is expanding to the west. Bamboo early next year will open a co-working space at 301 W. Washington St. near downtown Ann Arbor. The Ann Arbor location would follow a Detroit location that opened in 2013 and a Royal Oak space that opened in 2021. The 24,000-square-foot space will have a similar setup to the Royal Oak location. The Ann Arbor Bamboo will be situated over three floors and will include 40 private offices and 30 dedicated desks. The remainder of the space will feature open co-working spaces and amenities such as a rooftop working and event space, classroom training room, a fully soundproof meeting space and a shared kitchen space. The Ann Arbor Bamboo will have a staff of three employees, bringing the company’s total number of staffers to nine. “We’ve been looking at moving into Ann Arbor for years,” Bamboo co-founder and CEO Amanda Lewan told Crain’s last week. “The space will have a very similar feel to Royal Oak. We’re looking to create a retail-type vibe where you

walk in and you’re immersed in the community space. It’s right next to the Blind Pig and surrounded by parking, so it’s easily accessible for people coming in.” The Ann Arbor Bamboo will take over a space previously occupied by Clinc AI and a Kiwanis retail thrift store. Lewan, a past Crain’s 20 in their 20s honoree, said she expects the location to service 400-500 members annually, including 200-300 businesses. Those figures are similar to the demographics of the Detroit and Royal Oak spaces, Lewan said. Lewan said the current state of commercial real estate makes now a good time for Bamboo to branch out. “In our industry, commercial real estate is in crisis,” Lewan said. “A lot of spaces are in crisis, in transition, or being taken over. Hybrid work is here to stay. There are industry predictions that say co-working spaces will grow by 12-15% year-over-year. Ann Arbor has a reputation for entrepreneurship and innovation, so a flexible workspace is a great idea for the city.” Lewan declined to disclose the investment into the new space, along with revenue projections and Bamboo’s annual revenues. She said doing business in Ann Arbor will be more costly for the

A third Bamboo co-working space will open early next year in Ann Arbor. | PHOTOS BY BAMBOO

company, as it’s a more expensive market. That cost will hit members a bit, too. Ann Arbor monthly membership pricing is set at $75 for a virtual office, $200 for a coworking space, $400 for a dedicated desk and $850 a month for a private office. Detroit membership prices range from $60 to $550 a month. Royal Oak membership pricing is set from $65 to $575 a month. “The pricing is pretty similar but it’s a bit more expensive because of the market,” Lewan said. Ann Arbor isn’t the last market Lewan hopes to expand into. The Bamboo co-founder and CEO said moving into Grand Rapids is a possibility too. For now, though, the focus is on establishing a strong presence in Ann Arbor. “I’m super excited,” Lewan said.

OAKLAND COMMUNITY HEALTH NETWORK OAKLAND COUNTY’S PUBLIC MENTAL HEALTH SYSTEM

“I think (Bamboo) will be an additive addition to the community. We want to build a bridge between Detroit and Ann Arbor. (The University of Michigan) has such great

Law shielding drug firms faces repeal By David Eggert

SERVING INDIVIDUALS WITH: • Intellectual or Developmental Disabilities • Mental Health Challenges • Substance Use Disorders Oakland Community Health Network ensures people are aware of and have access to quality behavioral health services. These valuable supports improve health, quality of life, and promote full community participation for Oakland County residents.

Non-emergency ACCESS 248-464-6363 Suicide & Crisis Lifeline 988 www.oaklandchn.org INSPIRE HOPE • EMPOWER PEOPLE • STRENGTHEN COMMUNITIES

talent, and we want to help them find companies to work for and stay in Michigan. We just want to be a great partner in the community at-large.”

LANSING — Michigan’s oneof-a-kind law shielding drug manufacturers from product-liability lawsuits would be repealed under a bill passed last week by the Senate and sent to the House for consideration. The immunity law has been criticized by Democratic state Attorney General Dana Nessel, who says it affected her strategy to seek damages for the painkiller addiction epidemic. Residents have also run into obstacles when suing pharmaceutical companies, though in some cases they have been able to participate in national class-action settlements. The 1995 law is considered to be the toughest law in the country, allowing legal damages only if plaintiffs prove a company withheld or misrepresented information about a drug that would cause the Food and Drug Administration to not give or to withdraw its approval. It was enacted by Republican former Gov. John Engler and legislators. Democrats have tried rescinding the law for years and now are positioned to do so because they con-

trol the Legislature and governor’s office. All 20 Democrats were joined by 10 Republicans in passing the repeal measure, Senate Bill 410, on a 30-8 vote. “This law broke down the tort system, which is essential for accountability here in these United States and it left Michigan as the only state with blanket immunity for drugmakers,” the bill sponsor, Democratic Sen. Jeff Irwin of Ann Arbor, said in a floor speech. “We know that oftentimes adverse drug events hurt, maim, kill residents all over this country. But Michigan’s the only state where those residents and their family don’t have access to the courts, don’t have access to the justice system to seek accountability and compensation.” He said the legislation “has been a long time coming.” Supporters have said the law helps to cut down on junk or frivolous lawsuits that drive up insurance premiums and other business costs. It was part of tort reform legislation and was intended to safeguard The Upjohn Co., a Kalamazoo-based business that was later folded into Pfizer Inc.

16 | CRAIN’S DETROIT BUSINESS | OCTOBER 23, 2023

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Gilbert’s Rehabbed & Ready program completes 100th home By Nick Manes

The Detroit Land Bank Authority and the Rocket Community Fund last week announced a new down payment assistance program, in conjunction with marking a significant milestone for a long-running housing program. The down payment assistance program announced last week is part of the DLBA and Rocket Community Fund’s Rehabbed & Ready housing program. The two Detroit-based organizations — the latter of which serves as a major philanthropic vehicle for billionaire businessman Dan Gilbert — also said they had completed repairs on the 100th home of the Rehabbed & Ready initiative. Dating back to 2015, the program renovates homes in Detroit to move-in condition for market-rate sale. Part of the aim is to create market-rate comparable home sales, or comps, to ease mortgage appraisals in the city. The down payment assistance will be open to those making up to 120% of the area median income, which in Wayne County stands at just under $80,000 for one person, or about $91,000 for two people

according to figures from the Michigan State Housing Development Authority. The new program will be funded with an initial $200,000 through the end of the year, with a 2024 commitment to be decided based on how much demand there is, a spokesperson said. “We are excited to see the evolution of the Rehabbed & Ready program, with the continued support and partnership of the Rocket Community Fund,” Detroit Land Bank Authority CEO Tammy Daniels said in a statement. “This program will expand the accessibility of stable housing to a much larger group of low- and middle-income buyers while simultaneously helping to rebuild and revitalize Detroit neighborhoods.” The city of Detroit earlier this year launched its own $6 million down payment assistance program — as part of a larger $200 million housing plan — to help lower-income Detroit residents acquire rental properties from landlords, as Crain’s reported at the time. The new fund will be managed by National Faith Homebuyers, which also runs the city of Detroit’s separate down payment assistance program. A dollar

amount for the fund was unclear. “For the last eight years, Rehabbed & Ready has steadily worked in more than 10 neighborhoods to create move-in ready homes, reduce blight and increase access to financing for all homeowners by closing the appraisal gap,” Laura Grannemann, executive director of the Rocket Community Fund, said in a news release. “As Detroit’s housing market continues to improve and stabilize, we are proud to add another tool to our toolkit, working with National Faith Homebuyers to ensure that these beautifully renovated homes remain accessible and affordable for Detroit families.” The 100th home renovated as part of Rehabbed & Ready stands in the Islandview neighborhood on Detroit’s east side. The four-bedroom, one-and-a-half bathroom house measures more than 1,400 square feet and features high-efficiency electric appliances, an electric heating and cooling system and an electric water heater, “significantly reducing its overall energy costs,” according to a news release. While a listing price for the home has yet to be determined,

A house on Seyburn Street in Detroit’s Islandview neighborhood is the 100th property completed under the Rehabbed & Ready program. | NICK MANES

figures from the DLBA and Rocket Community Fund show an average combined cost of the properties and renovations stands at $181,169, and the average sale price of the homes is $168,536. The latter figure amounts to a 7% loss, backstopped by funding from the Rocket philanthropic fund. When the Rehabbed & Ready program began, the average loss was 31%, according to the release. The Rehabbed & Ready program has shown some success in lifting property values in Detroit neighborhoods. For instance, the program started renovating homes in the Greenfield/Grand River area on the city’s northwest side in 2018, and average home

values in the area were under $50,000. Three years later, after Rehabbed & Ready had completed its work in the area, values had more than doubled. “The Rehabbed & Ready program has been an important part of our effort to transform blight to beauty and strengthen our neighborhoods,” stated Detroit Mayor Mike Duggan. “Thanks to Dan Gilbert’s vision to create this program, the Rocket Community Fund’s ongoing financial support and its partnership with the Detroit Land Bank Authority, 100 vacant homes have been beautifully restored, increasing the value of homes near each of them.”

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PEOPLE ON THE MOVE

Advertising Section

To place your listing, visit crainsdetroit.com/people-on-the-move or, for more information, contact Debora Stein at 917.226.5470 / dstein@crain.com ARCHITECTURE / ENGINEERING

INSURANCE

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Downtown Boxing Gym

Gallagher welcomes Jason Freeman as Area Vice President of Employee Benefits. Mr. Freeman brings 24 years of benefits consulting experience to the Gallagher team. Most recently, prior to joining Gallagher, Jason spent 10 years at Hylant, where he managed employee benefits for Hylant’s three Michigan offices. In addition to 15 years of management experience, Jason has spent time as an analyst, an account manager, and a lead consultant. Jason earned his Bachelor’s Degree in Economics from U of M.

Detroit-based Downtown Boxing Gym (DBG), a leading evidence-based youth development organization, is pleased to welcome Peter Fezzey as Chief Advancement Officer. In this role, Peter will lead the strategic advancement, communications, and sustainability for the organization which is poised for significant growth locally, nationally, and globally. He previously served as DBG’s board Vice President, Chief Growth Officer for Skidmore Studio, and held various sales management and leadership roles.

INSURANCE / FINANCIAL

NONPROFIT

NFP

The Engineering Society of Detroit

Anderson, Eckstein & Westrick, Inc. (AEW) is excited to announce the addition of Michael A. Vigneron, PE, to its Board of Vigneron Directors. Michael has been promoted to Vice President and will remain the Director of Engineering. As a registered professional engineer with more than 21 years of experience in municipal and transportation engineering, Michael’s current responsibilities Arlow include project management, design, and planning as well as oversight of AEW’s technical standards. AEW would also like to announce the promotion of Board Member Jason R. Arlow, AIA, LEED AP, Director of Architecture, to Executive Vice President. Jason’s leadership as Director of Architecture since 2014 has generated substantial growth and success of the department.

NFP is pleased to announce that Mamie Mazzara, GBDS, is now a service leader within Benefits and Life. With over 18 years in the insurance industry, most recently as an Account Executive at NFP, Mamie has demonstrated a passion for building relationships and delivering results. Mamie continues to act as an experienced resource for various client needs, ensuring that the team is upholding NFP’s high standards of client service and implementing best practices and policies.

The Engineering Society of Detroit is pleased to welcome Heather Crowley as the Director of Growth and Engagement. Heather joins ESD with over 20 years of experience in both the for-profit and non-profit sectors, focusing on revenue strategy and management. Heather will be responsible for growing membership and building engaging partnerships for the Society, resulting in positive experiences that will promote the Society’s mission of serving this generation of engineers and fostering the next.

FINANCIAL SERVICES

CU Trust CU Trust, a Michigan trust bank headquartered in Farmington Hills, recently added two skilled trust and Catalfio wealth management professionals. Jami Catalfio, VP, Senior Trust Advisor, has nearly 20 years of valuable experience with a top regional bank in Ann Arbor, San Diego, and Detroit. A national trust school graduate of Preserve your career change Pepperdine University, for years to come. Jami also holds a bachelor’s degree in business adminPreserve your career change for years come. Hamlin Plaques • Crystalto keepsakes istration. Anne Preserve your careerFrames change forPromotional years to come. • Other Items Hamlin, VP, Lead Client Service, offers more than 35 years of • Plaques Laura Picariello experience with a variety of top Laura Picariello • Plaques Reprints Sales Manager regional banks in Michigan. Her• Crystal keepsakes Laura Picariello Reprints Sales Manager • Crystal keepsakes reputation for combining a • Frames Reprints Sales Manager Preserve• Frames your career change lpicariello@crain.com lpicariello@crain.com wealth of knowledge with a lpicariello@crain.com service-focused approach has • Other Promotional 723-0569 723-0569 Other Promotional for• years to Items come. Items (732)(732) (732) 723-0569 benefited clients as well as trust bank operations.

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Family-owned Hamtramck-based Metropolitan Baking Company in June 2024 will open an additional 30,000-square-feet on an already 100,000-square-foot facility. | JAY DAVIS

BAKERY

growth. Kordas in a previous interview with Crain’s declined to disclose company revenues, saying only that the figure had doubled from 2011 to 2021. In addition to Coney buns, Metropolitan Baking Co. produces wheat, white, rye, French, Italian, hamburger, hot dog and slider buns, as well as various dinner rolls for restaurants, universities, stadiums and retail establishments. Its products are packaged under several different brand names, primarily Kordas.

From Page 3

Locally, the company works with Kroger, Sam’s Club, 7-Eleven, Quality Dairy, Nino Salvaggio International Marketplace and about 400 independent grocers throughout Michigan. The expansion is being driven by new sales opportunities currently hampered by capacity constraints, Kordas said. Along with the added plant space, the expansion will include new stateof-the-art bun and roll lines that will increase capacity by 30-40% to fully use expanded shipping — George Kordas, Metropolitan Baking Co.’s docks and upgraded cold president and grandson of its founder storage. The bakery currently opThe bakery’s rapid growth of erates out of a 100,000-squarefoot facility owned by the Kordas late has Kordas thinking fondly of family, which over the past 12 its founder. “I wish my grandfather was years has ramped up distribution capacity. The company has here to see this,” Kordas said in around 100 route trucks driven by the release. “He would be imindependent contractors that pressed by the modern facilities leave the Hamtramck facility for and national customer base, but I daily deliveries throughout Mich- would be even prouder to show him that today’s Metropolitan igan. Officials with Metropolitan Baking Co. still reflects his origiBaking Co. did not immediately nal passion for baking breads and return Crain’s request for infor- valuing partners, both our emmation on investment into the ployee teams and our customers expansion and projected revenue new and old.”

“I wish my grandfather was here to see this.”

HENRY FORD From Page 1

“Together we can expand health care services and deliver innovations in care — from prevention and early detection through the treatment of complex conditions — to more people and communities across our state, including those who are most vulnerable,” Bob Riney, CEO of HFH, said in a press release. “We share a deeply-rooted dedication to providing world-class health care that everyone deserves, regardless of geographic, demographic, or socioeconomic status.” Riney will serve as the CEO of the new entity. The deal is set to be completed in the summer of 2024, after regulatory approvals. The deal comes only months after HFH announced a nearly $3 billion plan to construct a new hospital tower in Detroit and redevelop its campus in New Center. For St. Louis-based Ascension,

unloading its Southeast Michigan hospitals comes as a financial relief. The Catholic health care system reported a $3 billion operating loss during its latest fiscal year and has been working to sell off assets to stem its bleeding. In April, it announced it planned to sell its Providence Hospital in Mobile, Ala., to the University of South Alabama Health Care Authority. Then in June it entered into an agreement to sell Our Lady of Lourdes Memorial Hospital in New York to Sayre, Pa.-based Guthrie Clinic as well as related clinical and other business associated with the hospital. In late 2022, Ascension completed the sale of certain assets of its outreach laboratory business and transitioned management of hospital-based labs in certain markets to Labcorp. The deal with HFH is reminiscent to a deal it made with Milwaukee-based Ministry Health Care, where it sold its interest in seven hospitals in Wisconsin to the competitor.

Adam Hollier launches House challenge to Shri Thanedar By David Eggert

Democrat Adam Hollier announced last week he is challenging first-term U.S. Rep. Shri Thanedar in 2024 after recently leaving Gov. Gretchen Whitmer’s cabinet, where he directed the state Veterans Affairs Agency. Hollier, a former state senator who serves in the Army Reserve, finished second to Thanedar in a nine-candidate Democratic primary in 2022. The Democratic-heavy 13th Congressional District includes portions of Detroit — where he was born and raised — along with several other Wayne County cities like Taylor, Dearborn Heights and the Grosse Pointes. “We need a congressman who delivers, and we need it right now. Sadly, out-of-touch multimillionaires like Shri Thanedar seem more interested in posting memes than delivering for the district, and we’ve had enough,” Hollier said in a statement. “I’ve spent my entire life taking on the big fights and delivering for the people who need it most — and that’s exactly what I’ll do in Congress.” Thanedar accused Hollier of negative campaigning. “I believe great vision and results, and not negative attacks, are

Adam Hollier

Rep. Shri Thanedar

what the people of Michigan’s 13th Congressional District need,” he said. “I’m proud to run on my record of delivering help for my constituents, bringing back funding for critical projects across the district, sponsoring bills to help workers, and standing up to the extreme Republican majority’s efforts to ban abortion and take away our voting rights.” Whitmer announced that Brian Love will be the next veterans affairs director, starting Oct. 31. He directs community engagement for The Education Trust-Midwest and served in the Marines. Hollier announced an endorsement from former U.S. Rep. Brenda Lawrence, who backed Focus: Hope CEO Portia Roberson in the 2022 primary. Her retirement, along with a new congressional map after redistricting and a large field in which the vote was split among Thanedar and eight Black

candidates, left Detroit without an African American member of Congress for the first time in 67 years — something Hollier, who is Black, noted in his announcement. He also secured backing from Wayne County Executive Warren Evans, who endorsed him last time. Thanedar, who made a fortune in the chemical-testing industry, spent millions of it to win in 2022. He recently got into a flap with the other U.S. House member who represents parts of Detroit, Rashida Tlaib, a Palestinian American who has faced criticism for not sufficiently condemning the Hamas attack on Israel. He denounced her language, and Tlaib — who has said critics are distorting her position — responded in The Detroit News by criticizing Thanedar’s job performance and accusing him of not helping constituents. Thanedar’s former communications director took to X, formerly Twitter, to back up Tlaib, saying Thanedar is “the most ignorant, self-centered, and uninformed human I’ve ever worked with.” Thanedar said he will never apologize for standing up for Israel and against terrorism. “Don’t believe everything you read on Twitter,” he said.

Head of Belle Isle Conservancy steps down to join Habitat affiliate By Sherri Welch

The founding president and CEO of the Belle Isle Conservancy is stepping down to take the top job at Habitat for Humanity of Oakland County. She will succeed Executive Director and CEO Tim Ruggles, 63, who is retiring Nov. 1 after 12 years at the helm of the Pontiac-based nonprofit. As the founding president and CEO of the conservancy, Michele Hodges merged disparate, special-interest groups into one nonprofit. She has fostered public-private partnerships to help restore Belle Isle and its historic structures. And under her watch, the historic Belle Isle Aquarium reopened to the public, the Oudolf Garden by famed landscape architect Piet Oudolf took shape, restoration work on the dome of the Anna Scripps Whitcomb Conservatory launched in partnership with the Michigan Department of Natural Resources, the starting point of the statewide Iron Belle Trail was established and the Belle Isle Grand Prix came to the island before returning to the city’s streets this year. During its first 10 years, the conservancy helped drive $16.5 million in investment and impact, Hodges said. Additionally, it manages a corp of volunteers and field

Michele Hodges

Tim Ruggles

trips and educational programs provided to thousands of Detroit students each year and has served “as the voice of the community, making sure Detroiters know it’s their park, and the park is open to all,” Hodges said. More than 5 million people visit the island every year, now, she said. The Belle Isle Conservancy’s board has named Maud Lyon, founder of arts organization CultureSource and a consultant on the conservancy’s formation, as interim director while its executive committee leads a search for a permanent director who will oversee its $2 million annual budget. “We are grateful to Michele for supervising a decade of organizational growth for Belle Isle Conservancy as the official nonprofit partner of Belle Isle park, and for leading the BIC team through reopening of the Belle Isle Aquarium in 2012 and supporting the transition of the Island to a state park in 2013,” the Belle Isle Conservancy Board of Directors said

in an emailed statement. Hodges is the current mayor of Grosse Pointe Park. Prior to her role with the Conservancy, Hodges, a Crain’s 40 under 40 in 2006, served as president of the Troy Chamber and senior director of new investment for the Detroit Regional Economic Partnership. She also held other roles with the downtown development authorities for the cities of Southfield and Eastpointe. She holds a Bachelor of Science degree in Urban Planning from Michigan State University. The new role at Habitat is “a great growth opportunity” after eleven years at the Belle Isle Conservancy, Hodges said. “I never saw myself leaving because I’ve never felt so connected to (the) mission and its people, but this is a chance to help people when they need it most.” Hodges joins a nonprofit that is seeing a period of strong performance. During Ruggles’ tenure, Habitat Oakland has grown from serving 15 families per year to providing almost 200 per year now with newly constructed homes, rehabs and repairs on existing homes and financial education/counseling. Its annual budget has grown with the number of people it serves to nearly $6 million this year.

Advertising Section

CLASSIFIEDS To place your listing, contact Suzanne Janik at 313-446-0455

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Being offered in 19 parcels and as a complete unit. Refer to PIP packet for more information. Inspection with auctioneers available Wed, Oct. 18th & Wed Oct. 25th 2pm-5pm

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October 16, 2023

The Mayor’s Workforce Development Board (MWDB) is directly responsible and accountable to the State of Michigan, Labor and Economic Opportunity-Workforce Development (LEO-WD) for the planning and oversight of talent development programs in the City of Detroit. Designated by the MWDB, Detroit Employment Solutions Corporation (DESC) serves as the fiscal and administrative entity that provides workforce services to job seekers and employers. DESC’s primary funding streams include Workforce Innovation and Opportunity Act (WIOA), Temporary Assistance to Needy Families (TANF) that funds Michigan’s PATH (Partnership. Accountability. Training. Hope.) employment program, Food Assistance Employment and Training (FAE&T), Wagner-Peyser Employment Services (ES), and other public and private funding. The Corporation enters into contracts with qualified entities to provide workforce development programs and services to job seekers and employers. American Rescue Plan Act (ARPA) and Midwest Urban Strategies - Growth Opportunity Grant funding may support contracts resulting from competitive bid process. DESC is seeking proposals from qualified individuals, organizations and/or firms.

Bid package for this RFP is available for download at this DESC website:

https://www.descmiworks.com/opportunities/rfps-and-rfqs/. Mayor’s Workforce Development Board David E. Meador, Co-Chairperson Dr. Darienne Hudson-Driver, Co-Chairperson

Detroit Employment Solutions Corporation Board Alice Thompson, Chairperson Detroit Employment Solutions Corporation Dana Williams, President

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MAY 24,23, 2021 | CRAIN’S OCTOBER 2023 | CRAIN’SDETROIT DETROITBUSINESS BUSINESS || 17 19

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Michigan among regions selected for hydrogen hub Hydrogen in Michigan

Michigan is among a group of Midwestern states in line to receive up to $1 billion in federal funding to kickstart development and production of hydrogen fuel. The $7 billion national program is a key component of President Joe Biden’s agenda to slow climate change. Biden and U.S. Energy Secretary Jennifer Granholm on Oct. 13 announced details of the hydrogen hubs, which are expected to spur more than $40 billion in private investment and create tens of thousands of jobs, bringing the total public and private investment to nearly $50 billion, officials said. The Midwest Alliance for Clean Hydrogen, or MachH2, will create the regional hub and oversee the construction of a new hydrogen hub at the American Center for Mobility in Ypsilanti, where a separate hydrogen hub, announced last summer, is already in development. It will oversee the expansion of a hydrogen production and refueling center at the Flint-area Mass Transportation Authority. MachH2 also will work with the Michigan Infrastructure Office to build a hydrogen “truck stop of the future” in Detroit. “The Midwest is showing the nation that by working together, we can grow our economy, create good-paying jobs, and bring business investments to our region,” Gov. Gretchen Whitmer said in a news release. “Michigan is proud to work with our neighbors to build up our hydrogen industry and lead the future of the emerging clean energy sector. Michigan is leading the nation in clean energy and electric vehicle projects and jobs. With MachH2, we will continue reducing our emissions, improving public health outcomes, and building a brighter future for generations to come.” MachH2 said it anticipates creating 13,600 direct jobs — 12,100 in construction and 1,500 permanent — as part of the effort. The Chicago-based alliance is made

RATES From Page 3

Neither company has, as of yet, announced a date for the release of third-quarter earnings. However, the past several quarters for both companies proved challenging as diminishing purchase mortgage originations — and vastly reduced refinancings — curtailed profitability. The second quarter of this year allowed both Rocket and UWM — which collectively employ around 22,000 people in metro Detroit — to return to profitability, albeit vastly diminished from the peaks of late 2020 and 2021 when rock-bottom interest rates sparked a home-buying and refinancing boom. The modest profitability seen in the second quarter by companies

BLOOMBERG

By Audrey LaForest, Automotive News and Kurt Nagl and David Eggert, Crain's Detroit Business

A new EV charging hub in metro Detroit seeks to modernize the truck stop experience.

up of more than 70 public and private entities representing every phase in the hydrogen value chain. The federal funding — part of a larger $8 billion hydrogen hub program funded through 2021’s Infrastructure Investment and Jobs Act — will be used to create networks that link hydrogen producers, infrastructure providers and customers across multiple industries, including transportation. During a call with reporters Oct. 12, senior administration officials described the hubs as “broad clusters of public and private entities located in a particular geographic area that produce and consume hydrogen in close proximity through connected infrastructure like pipelines.” Of the 79 concept papers submitted to the Energy Department, seven hubs representing 16 states were selected. The sites are: ◗ The Midwest Hydrogen Hub, which includes parts of Michigan, Illinois and Indiana. ◗ The Appalachian Hydrogen Hub, which includes parts of West Virginia, Ohio and Pennsylvania.

◗ The California Hydrogen Hub,

which includes parts of California.

◗ The Gulf State Hydrogen Hub,

which is centered in the Houston region. ◗ The Heartland Hydrogen Hub, which includes parts of Minnesota, North Dakota and South Dakota. ◗ The Mid-Atlantic Hydrogen Hub, which includes parts of Pennsylvania, Delaware and New Jersey. ◗ The Pacific Northwest Hydrogen Hub, which includes parts of Washington, Oregon and Montana. Some of the hubs will use renewable energy feedstock, while others will rely on fossil fuels and nuclear power. Some will target specific industries, such as steel making, heavy-duty trucking and power generation. Several of the hubs also will require project labor agreements for construction, the officials said. Meetings are expected to start this month with regional stakeholders to share project details and engage with the communities.

Surging rates Borrowing costs on the benchmark 30-year home loan rose to 7.57%. 7% 6 5 4

7.57% on Oct. 12

3 2 1 0 Jan. 2020

Oct. 2023

Source: Freddie Mac

like Rocket and UWM is likely to remain in third quarter earnings reports, according to an investor note Oct. 17 by Kyle Joseph, an equity analyst with Jefferies. “With relatively strong 2Q prints and solid 3Q outlooks, it felt like

the industry was close to emerging from the woods, but recent rate movements likely extended the forest,” Joseph wrote. Gain on sale margins, a key profitability metric for mortgage lenders, “showed ongoing mo-

In addition to the first-of-itskind plant at the ACM, Michigan has recently attracted major hydrogen projects, with other potential developments in the pipeline, according to economic development officials. Norwegian hydrogen company Nel ASA landed on a site in Plymouth Township for a new $400 million manufacturing plant that will be the first of its kind in the U.S. Meanwhile, automotive supplier Plastic Omnium plans to invest up to $171 million for a pair of hydrogen factories in Michigan. Automakers and suppliers across Michigan have invested in hydrogen technology and R&D as the zero-emission fuel is increasingly being seen as crucial for a carbon-free future. Hydrogen power has gained traction in the heavy duty vehicle segments, from semi-trucks to buses, which are served less efficiently by pure battery electric propulsion. “The Hydrogen Hub has the potential to power a number of sectors that matter to the Heartland, from manufacturing to transportation and will help us make meaningful progress in our work toward a clean energy economy,” U.S. Rep. Debbie Dingell, D-Dearborn, said. The Michigan Infrastructure Office spearheaded the state’s participation in the hub and also is a hub partner, providing matching funding, for instance, as part of the Flint transit application, said Zachary Kolodin, who directs the office. He said Michigan-specific projects in the hub are focused on decarbonizing the transportation sector. They include subsidizing Flint’s expansion of its hydrogen production and refueling facility for buses and building the “truck stop of the future” to serve Gordie Howe International Bridge traffic in Detroit. “That’s a very exciting project that’ll take diesel trucks off the road, replace them with zero-emission hydrogen vehicles that at the point of use have no emissions, not just no carbon emissions but no particulate emissions. That’s really

exciting because the Downriver and Southwest Detroit communities continue to be affected by the pollution from truck traffic. Clean hydrogen offers a way to mitigate that and to clean up their air,” Kolodin said. The state also will benefit from hub member BP’s planned low-carbon mobility corridor across Michigan, Illinois and Indiana. “Michigan automakers want to be at the forefront of making hydrogen-powered vehicles, whether they be medium- or heavy-duty vehicles like a cargo van or … the kind of off-road vehicle that operates in a mining site,” Kolodin said. The state had also backed another hub project, the Great Lakes Clean Hydrogen Hub, which was among the finalists. “I hope that the folks involved in that hub continue to move forward clean-hydrogen investments in the Midwest,” Kolodin said, noting that one of its proposals was to use hydrogen at steel producer Cleveland-Cliffs’ Toledo plant. The next step for MachH2, Kolodin said, is to negotiate agreements with the Department of Energy on how the funding will be used. “We’re expecting that every dollar of federal investments leverages $6 of private investment,” Kolodin said. “All together that makes these one of the largest investments in clean energy ever.” Once in full operation, the seven DOE-selected hubs are expected to cut 25 million metric tons of carbon dioxide emissions from end uses each year — an amount roughly equivalent to the combined annual emissions of 5.5 million gasoline-powered vehicles, the officials said. The hubs also are a key strategy to achieve the Biden administration’s goal of reaching net-zero emissions by 2050. Fewer than 1 million metric tons of clean hydrogen are produced per year today in the U.S., according to the Energy Department. But the department has set a goal to produce 10 million metric tons of clean hydrogen annually by 2030.

mentum in 2Q reports, and are optimistic for relatively stable margins into 3Q as industry supply/demand appeared to be approaching an equilibrium,” Joseph added. Since 2021, with mortgage interest rates more than doubled, refinancing makes up less than 20% of the total mortgage origination market, according to the latest mortgage market forecast from the Mortgage Bankers Association. Around 90% of all refinancings at the moment involve “cash-out borrowers” tapping their home’s equity, according to a report earlier this month by mortgage data firm Black Knight. That market does present opportunity, according to Andy Walden, vice president of enterprise research at Intercontinental Exchange Inc. (NYSE: ICE), Black Knight’s parent company. “Lenders hoping to engage with

the constrained refinance market need to look beyond standard methods of identifying potential candidates,” Walden said in a statement. “In fact, with nine of 10 August 2023 refinances involving the borrower raising their interest rate — with an average rate increase of +2.34 percentage points — simple ‘in the money’ analytics are missing this market almost entirely. Granular insight into the before-and-after-refinance picture is key to understanding who is transacting in today’s rate environment — and more importantly, why.” Of those refinancing in the current market, the Black Knight report says that most doing so have lower balances on their mortgage, an average of $165,000, and are looking to withdraw larger amounts of equity at lower interest rates than current home equity line of credit offerings.

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STRIKE From Page 3

A generation of pain Michigan’s per capita income was 13% below the national average last year, tied for its lowest ever relative to the other 49 states, according to data from the University of Michigan. That places Michigan as the 39thworst state for per capita income. It ranked 16th in 1999. This can largely be explained by the state’s dependence on manufacturing jobs, which, frankly, are valued less and less each year as production jobs continue to move to low-cost nations like Mexico and elsewhere. According to Lou Glazer, president and co-founder of Ann Arbor think tank Michigan Future Inc., the state has been slow to build on the “knowledge economy” that has propelled states like Massachusetts, Utah and others, along with their residents, to better standards of living. The knowledge economy — an economy more dependent on accessibility of information rather than production — is the leading indicator of growth across the U.S. Michigan lags far behind and is, in fact, going backward in this age of technological advancements. The share of per capita income from the knowledge economy has grown to 17.4% in the U.S. in 2022, up from 16% in 1999. In Michigan, it’s declined from 14.7% in 1999 to just 14.1% last year, according to Glazer’s data. That’s led to Michigan’s weak per capita income growth, which grew only $11,095 between 1999 and 2022, compared to a $19,389 national average. And bills have gotten more expensive. Groceries cost more; services cost more; cars cost more. Meanwhile, the U.S. has since seen the number of billionaires grow from fewer than 50 in 1999 to more than 755 in 2023. “What we’re seeing is a growing frustration on the part of workers in this country who have fallen behind,” said Marick Masters, a professor of business at Wayne State University. “Inflation has accelerated their concerns. Workers across the board in transportation, aviation, entertainment and manufacturing are looking at their declining standard of living and saying they’ve had enough. The economic system seems to have put working-class people at the bottom and allowed those in the upper echelon to reap the benefits. So now they want to rebalance that.” And the union leaders are using that pent-up frustration to fire up their troops. Remember: UAW President Shawn Fain wore an “Eat the Rich” T-shirt in a press conference earlier this month.

Not always just money But the growing frustration isn’t always just about money and wealth inequality. Even workers across the health care industry are flexing their collective

Striking United Auto Workers members and supporters demonstrate outside the Ford Motor Co. Michigan Assembly plant in Wayne. | BLOOMBERG

“Our strike is working, but we’re not there yet,” UAW President Shawn Fain told workers in a video appearance recently. | SCREENSHOT / UAW FACEBOOK

muscle. We’ve seen unionization efforts at University of Michigan Health and strikes at Ascension Health, Detroit Medical Center and elsewhere. Health care workers are demanding lower patient-to-provider ratios, improved scheduling and accelerated hiring after worker burnout dominated headlines during the pandemic. “No one can be surprised by increased labor actions in health care. Health care workers have told our research team consistently that their workplaces have been unsafe, understaffed, and unsupportive for the past decade,” Christopher Friese, a registered nurse and professor of nursing, health management and policy at UM, told Crain’s in an email. “The pandemic is not to blame, but it spotlights the problems and offers an opportunity to change; so far that has not been realized. Too few institutions have learned the lessons from the pandemic and put the needs of their workforce as their organiza-

tional priority. In fact, many institutions have regressed and have asked their workforce to do more work with less support and resources.” In fact, more than 145,000 health care providers, including highly paid doctors, left the industry altogether between 2021 and the end of 2022, according to data released recently from Definitive Healthcare. The bloodletting in the field puts more pressure on the existing workforce and undoubtedly will lead to more labor strife.

A beginning or an end? The strikes do come at a cost. In the short term, the economy has lost billions from the auto work stoppages alone — $7.7 billion in the first four weeks, according to economist Patrick Anderson of the Anderson Economic Group. And the casino strike threatens $450,000 in city of Detroit tax revenue per day. Some auto industry experts

fear the prolonged battle may be contagious, and workers across the death rattle of American the state and nation are seeing the power Fain and the UAW and manufacturing. “The damage to suppliers is others are wielding. Masters said growing,” Glenn Stevens, execu- it started with the Teamsters’ tive director of MichAuto, an threatened strike of UPS earlier economic development organi- this year, which resulted in big zation for the state’s auto indus- wage gains for workers. Consumers were well aware of try, said on X recently. “The damage to brand and (market the 146-day Writers Guild of share) is starting to kick in. Even America strike that stopped Holif they (UAW) wind up with what lywood in its tracks. That strike they want, there will be scorched ended in late September after the 11,500 screenwriters reached a earth.” It’s unclear how long it will take deal to improve wages and conthe economy to recover from the trol the use of artificial intelliUAW strikes and whether what- gence in scripts. With all eyes on Detroit and the ever deal they arrive at will ultimately protect future manufac- UAW, it’s almost certain more turing workers as the industry strikes, walkouts and labor dismoves closer to an electric vehi- putes are on the horizon. “There is certainly a willingcle standard. The strike has already caused ness to challenge and be adverGeneral Motors to delay EV pro- sarial and a willingness to reject duction at its Orion Assembly worshipping at the altar of complant by a year. Reports are al- petitiveness right now,” Masters ready rampant that the Detroit 3 said. “The Teamsters showed that could delay even more EV production in the wake of the strike. Bill Ford Jr. earlier this month said at a press conference — Marick Masters, professor of business, Wayne State that the strike is already making the automaker uncompetitive with at UPS, and the writers stayed out nonunionized automakers like as long as they could. Shawn Fain is what you get, logically, when Tesla, Toyota and others. EVs have about 100 moving workers are concerned about parts, compared to more than wage erosion and loss of job se2,000 on an internal combustion curity over decades. There is, of engine vehicle. The UAW knows course, a tipping point where this, and it’s likely at least part of people want this all brought to a their aggressive strategy is to get close. No one wants to lose their workers paid today — since to- jobs or see their companies close. morrow is the least sure it has But we don’t know how long the ever been for laborers in the sec- UAW or other laborers can inflict pain. This may be a benchmark tor. But it’s clear that strikes are strike.”

“There is certainly a willingness to challenge and be adversarial...”

OCTOBER 23, 2023 | CRAIN’S DETROIT BUSINESS | 21

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THE CONVERSATION

Michigan Medicine CTO is engineering health care’s efficiency transformation MICHIGAN MEDICINE: Health care is facing a reckoning. Costs are too high and reimbursement is too low. For generations, building efficiencies took a back burner to the daily care of patients, who are generally unique and complex. Traditional streamlining, something metro Detroit is squarely familiar with from the auto sector, seemed dangerous to human care. But now advancements in artificial intelligence and, frankly, economic need are forcing the hand of health systems. Amy Cohn, chief transformation officer for Michigan Medicine, is tapping her operations processes and engineering background to simplify the way the Ann Arbor system works with the hope that better operations and profits follow. | By Dustin Walsh What exactly is the role of a chief transformation officer? We all know what a CFO does. But the places that have the CTO role; it varies from place to place. I am trained in operations research. I am faculty in the department of industrial operations and engineering, but I have been doing health care work for 15 years now. The question we’re trying to answer is why health care has not had the same successes as operational engineering. That’s why I started the Center for Healthcare and Patient Safety. My original training was in airlines and freight. Every problem there sounded like engineering homework. There was always an optimization. But as engineers, we need to understand the health care system — its language and its problems. That’s where I come in. I am working with clinicians, researchers and students to examine all sorts of problems. I teach students to work in multidisciplinary teams. So now I take that same approach, but prioritized around problems that are the greatest issues at the health system. How do you solve those problems? I’m not sure I knew what we were creating when we created it. But we knew there was opportunity here. We knew we’d find some value. We, like many places, have a disconnect between innovative ideas that can help

messages and we sent students in to ask questions. Some thought it would be great to get rid of them and others really wanted them. We discovered providers could pull the reports they wanted in a different way. Some people got rid of the messages and others got what they wanted with extra data. These are baby steps and seem easy, but they are important details that get lost in the function of the complex system. It’s not about getting rid of the emails, but finding a strategy to eliminate the burden and give people the right info at the right time.

Amy Cohn, chief transformation officer, Michigan Medicine

solve problems in our health system and a lot of those ideas come from the intersection of disciplines. We’re really good at doing that innovation in an academic setting, but there’s a huge gap between having that cool new idea and then getting it to the doctors or the bedside. I figure out how to bridge that gap. It’s always unique to the problem. We have to weigh how a solution fits into the entire system. Are we fixing one thing, but breaking another? It’s never black or white and all or nothing. We do the deep dive. We

figure out, in a complex system, whether fixing this inpatient care procedure will mess up skilled nursing, etc. We try to have the purview those in the system cannot. Can you provide an example of this work? A current project we did was trying to reduce emails the providers get. It’s overwhelming for them and leads to more burnout. Could we just stop sending those (systemwide) messages? Well, we found the 10 people who get the most

When we think transformation, we think technology. Isn’t that the future of health care? Technology, wearables, AI, highly specialized cancer regimes, diagnostic imaging; these are all critical to advancing health care. But how do you get them past the goalpost? What is the context in which you’re working with these technologies? We’re lowering the age for a colonoscopy, for instance. That’s great until you think about the people who needed them are now waiting longer. Yes, we need technology to create these solutions. So much of what we do in a hospital is about duration of time. We need to move faster and I don’t believe it’s going to look this way in a decade. But we have to keep framing around what it takes to make it successful in a complicated system.

Read all the conversations at CrainsDetroit.com/TheConversation

Michigan retail index ticks up in September, but still weak By Jay Davis

Michigan retailers got a little bit of good news heading into the holiday shopping season. About 35% of Michigan retailers in September saw an increase over August sales, according to the Michigan Retailers Association Retail Index. That number is up from the 29% reported last month, but down from the 49% of retailers who saw an increase at the same time last year. About 43% of the 37 retailers surveyed noted a decline in sales from August to September, down from 56% in last month’s report. Around 22% of retailers reported no change. The figures put the retail index at

a 47.6 on a 100-point scale, marking an increase for the first time since July. The figure is still down from the 61.5 reported in October 2022. Last month’s 32.4 index figure was the lowest since May 2020. MRA president and CEO Bill Hallan in a statement said the increase, however small, is a good sign. “In these challenging times, the recent uptick in local sales is a testament to the resilience of our communities. It’s not just a number on a scale, but a lifeline for countless small businesses,” Hallan said. “Let this be a reminder that when we shop local, we fuel the heartbeat of our neighborhoods, driving prosperity and fostering a stronger, more vibrant

Michigan.” The 100-point index provides a snapshot of the state’s overall retail industry. Index values above 50 generally indicate positive activity; the higher the number, the stronger the activity. The seasonally adjusted performance index is conducted by the Michigan Retailers Association in cooperation with the Federal Reserve Bank of Chicago’s Detroit branch. The increase is a mildly positive sign, but retailers are concerned about their prospects heading into the holiday shopping season. Only 12% of retailers surveyed believe their sales will continue to increase through December, while 11% expect sales to decline during the holiday season. About

77% of respondents anticipate no change this holiday season. That results in a 53.3 prediction Index rating, slightly down from 54.0 last month, and a dip from last year’s 59.5 prediction index rating. Consumers are starting their holiday shopping earlier than in previous years. A September National Retail Federation survey found that about 39% of U.S. shoppers plan to start shopping earlier than usual. About 46% of U.S. consumers began shopping before November last year, up from 39% in 2019. The NRF reported the earlier shopping is a result of consumers spreading out their holiday shopping to cover all the costs that come with the holiday season.

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