Crain's Detroit Business, June 1, 2015 issue by Crain's Detroit Business

20150601-NEWS--0001-NAT-CCI-CD_--

5/29/2015

6:25 PM

Page 1

CRAIN’S Readers first for 30 Years

The man who gave Beaumont $10M, and why PAGE 4

DETROIT BUSINESS June 1-7, 2015

A123 plans to double capacity of plants By Dustin Walsh

MICHIGAN’S BUDGET: THE STATE OF AFFAIRS

Biz pushes back on proposed MEDC cuts This is no time to stall state’s post-recession growth, biz leaders say

dwalsh@crain.com

A123 Systems LLC plans to announce today that it will double capacity at its three manufacturing plants, including two in Michigan, in a $200 million investment. In Michigan, battery cell production will increase from 3.3 million cells out of its plants in Livonia and Romulus to 4.3 million cells, said Jason Forcier, CEO of A123. The Livonia-based lithium-ion battery maker will increase battery capacity to 1.5 gigawatt hours at its plants in Michigan, Hangzhou, China and Changzhou, China over the next three years. Previous capacity was 750 megawatts. Its parent company, China-based Wanxiang Group Corp. , is funding Jason Forcier: All the expansion. “We’re at caA123 plants are at pacity at all of our capacity production facilities,” Forcier said. “The growth of our low-voltage business caused us to find ways to create more efficiencies as well as expand our operations.” After emerging from Chapter 11 bankruptcy in 2013, A123 refocused its business on low-voltage lithiumion batteries used by automakers for weight savings and to power other MPG-lowering technologies. This is a diversion from its original plan of manufacturing large lithium-ion battery packs to power electric vehicles — though it still does that work for the Chinese market. In the low-voltage market, A123 supplies automakers such as Daim See A123, Page 18

By Lindsay VanHulle lvanhulle@crain.com

MACKINAC ISLAND — Tim Allen probably won’t stop selling Pure Michigan on TV. The popular marketing campaign starring the movie star and native Michigander has helped the state attract millions of out-of-state visitors and hundreds of millions of dollars in new tax revenue. The “Pure Michigan” slogan is everywhere — on the radio, on buses, on license plates. But the $29 million program has been thrust into the center of a larger debate. Republican lawmakers are eyeing nearly $200 million in economic development money to

Dems’ road plan? In due time. Expect numerous versions of a road funding deal to swirl in the Capitol in coming months. But the top Democrat in the Senate says, “The proper way to do it is, as we go forward, to propose ideas at the right time,” Page 17

NEWSPAPER

Losing it – and trying to keep it: Cherry picking miffs small firms, Page M3

Mackinac Policy Conference coverage:

Capitol Briefings: Ann Arbor-to-Traverse City rail line should be a priority, Democratic Party chairman says, Page 7

Conference highlights, Page 12 Mary Kramer: Detroit’s future needs money — and jobs, Page M12 fix the state’s failing roads and bridges. Business leaders are pushing back against proposed cuts that would amount to nearly half of the Michigan Economic Development Corp .’s funding, arguing that the

state has momentum in a post-recession economy and now is not the time to slow it down. Key administrative figures, from MEDC CEO Steve Arwood to Gov.

Developing it: Is STEM education taking root? Page M4

See MEDC, Page 17

Proposed state budget boosts hospitals, but HMOs fall short But not every health care industry constituent is happy about the state of the state Hospitals in Michigan appear to come out health budget. Officials for the Michigan Association of Health Plans say the state’s 13 Medicaid the big winners in at least the working version of the 2015-16 state budget. HMOs got the short end of the stick as their traThose 133 hospitals will receive more than ditional Medicaid funding was cut by 1 percent, $450 million in additional federal Healthy or about $22.2 million. Michigan Medicaid funds for about 600,000 It’s all part of a groundswell of support in the enrollees — and a full restoration of $160 milLegislature to shift any state general fund exlion in graduate medical education payments cess from state departments to a revised $55 — if the Michigan Department of Health and Laura Appel: More billion state budget that would support a big Human Services budget approved last week by funding, but only hike in roads spending. (See related story, this House and Senate conference committees is after givebacks page.) passed by the full Legislature. The House and Senate conference commitThe graduate medical education payments go to tees gave unanimous approval of Health and Human teaching hospitals, and were previously cut from Gov. See HOSPITALS, Page 16 Rick Snyder’s proposed budget. By Jay Greene jgreene@crain.com

crainsdetroit.com Vol. 31 No 22

Talent

$2 a copy. $59 a year.

Crain’s Private 200 FCA leads the way, Page M47

Celebrating it: Meet the 10th class of Crain’s 20 in their 20s. Section starts on Page M19

20150601-NEWS--0002-NAT-CCI-CD_--

5/29/2015

4:49 PM

Page 1

CRAIN’S DETROIT BUSINESS // June 1, 2015

MICHIGAN

BRIEFS Bankrupt Family Christian’s new owner: Its subsidiary The U.S. Bankruptcy Court in Grand Rapids selected a nonprofit subsidiary of the bankrupt Family Christian LLC as the winning bidder for the company’s assets, MiBiz reported. Alpharetta, Ga.-based FCS Acquisition LLC , a 501(c)(3), was among four bidders for the assets of the parent company of Family Christian Stores, a national retailer of religious books and gifts. As the winning bidder, FCS Acquisition agreed to pay between $42 million and $43.7 million, including the assumption of about $23.4 million in debt. The deal is expected to close June 8 in Atlanta. Family Christian filed for bankruptcy in February, citing a six-year slide in sales and between $50 million and $100 million in long-term debt. The company operates 266 stores and employs 4,000.

Gr. Rapids foundation raises $33.6M for scholarships The Grand Rapids Community

Foundation said it has raised $33.6 million to pay for Grand Rapids Public Schools students involved in the Challenge Scholars program to attend college or trade school, MLive.com reported. The program, launched in 2011, offers students academic and college readiness support along with health and social services starting in sixth grade. About 285 sixth- and seventh-graders are enrolled. Besides what has been raised, the presidents of Aquinas College, Grand Valley State University , Ferris State University and Grand Rapids Com munity College in 2013 created scholarships for the 2020 graduates of the program.

Mich. craft beer production soared 41.5% last year Craft beer production in Michigan grew 41.5 percent in 2014 compared with the previous year, MiBiz reported, citing statistics from the Brewers Association , a Boulder, Colo.-based industry group. Last year, the 159 craft brewers in the state produced 825,103 barrels of

beer, up from 582,909 in 2013. Nationally, Michigan ranked 10th for the volume of beer produced and sixth for the number of craft breweries. Combined, the amount of beer sold last year by West Michigan’s two largest breweries — Galesburgbased Bell’s Brewing Inc. and Grand Rapids-based Founders Brewing Co. — accounted for more than 60 percent of the state’s production. Founders tied with San Diegobased Ballast Point Brewing & Spirits as the fastest-growing craft brewery in the nation in 2014.

Grand Rapids colleges offer housing to summer interns Grand Valley State University ’s downtown Grand Rapids campus and Aquinas College will open their dormitories this summer to house about 100 students from throughout the U.S. who have summer internships in the Grand Rapids area, MLive.com reported. Grand Valley is helping more than 20 companies — including Meijer Inc. , Spectrum Health and Steelcase Inc. — house interns between May and early September, said Susan Proctor, employer development manager at GVSU’s Career Center. Proctor said finding summer housing can be difficult for employers that hire out-of-state interns. “If we showcase that we’re a vibrant place, hopefully that will attract people to live, work and play here,” Proctor said.

MICH-CELLANEOUS 䡲 Grand Rapids-based Steelcase

Inc. sold its Pyramid innovation center in Caledonia to Reno, Nev.based Norman Pyramid LLC , the Grand Rapids Business Journal reported. Terms were not disclosed. The office furniture manufacturer had been trying to sell the building for four years. 䡲 Muskegon has become the largest city in Michigan to formally adopt a development practice known as “form-based codes,” MiBiz reported. The codes, designed to spur development in the core downtown, are intended to be in place of conventional zoning regulations and simplify the entitlement process, according to a statement provided by consultants who worked on the form-based codes with the city. 䡲 Ada-based Amway Corp. opened a manufacturing and research and design facility in Buena Park,

INSIDE THIS ISSUE BANKRUPTCIES . . . . . . . . . . . . . . . . . . 4 CALENDAR . . . . . . . . . . . . . . . . . . . . . . . 14 CAPITOL BRIEFINGS . . . . . . . . . . . . . 10 CLASSIFIED ADS . . . . . . . . . . . . . . . . 15 DEALS & DETAILS . . . . . . . . . . . . . . . 14 MARY KRAMER . . . . . . . . . . . . . . . . M10 OPINION . . . . . . . . . . . . . . . . . . . . . . . . . . 6 OTHER VOICES . . . . . . . . . . . . . . . . . . . 6 PEOPLE ON THE MOVE . . . . . . . . . .14 RUMBLINGS . . . . . . . . . . . . . . . . . . . . . 19 WEEK ON THE WEB . . . . . . . . . . . . . . .19

COMPANY INDEX: SEE PAGE 17

Calif., to make its Nutrilite brand of products, MiBiz reported. Amway plans to open four additional manufacturing sites across the country as part of its $322 million expansion project announced in 2012.

Corrections 䡲 A caption accompanying a photograph on Page 1 of the May 25 issue incorrectly said the M-1 Rail streetcar line will bear the name of Quicken Loans Inc. Quicken bought the naming rights for M-1 but has not yet announced the actual name for the rail line. 䡲 Because of a technical error, Hewson & Van Hellemont PC, Oak Park, was not included in Crain’s list of largest law firms in Southeast Michigan, published April 27. It would have been tied with Howard & Howard Attorneys PLLC at No. 14. A corrected list is at craindetroit.com/lists. 䡲 A story on Page M3 of this edition should have said that two employees from Plymouth Township-based Rassini International Inc. left the company to work for noncompeting companies. Due to printing deadlines, the page was published before the error could be corrected.

THE MILLER LAW FIRM Changing the Odds in our Clients’ Favor

Nonproﬁts: Tell your story to the business community!

Giving Guide PUBLICATION DATE: OCT. 26 AD CLOSE: Aug. 28

The Miller Law Firm is Recognized as the Leading Shareholder Rights Firm in Michigan Q

Shareholder and partnership disputes

Corporate governance litigation

Minority oppression litigation

Corporate control contests

&reach oJ ½duciary duty

Securities fraud and derivative claims

950 West University Drive, Suite 300 Rochester, Michigan 48307

248-841-2200

millerlawpc.com

The ﬁrst 52 nonproﬁts to sign up will be featured as a “Nonprofit of Note” in an issue of our Nonprofit Report e-newsletter.

Contact Marla Wise: mwise@crain.com or (313) 446-6032.

20150601-NEWS--0003-NAT-CCI-CD_--

5/29/2015

5:46 PM

Page 1

CRAIN’S DETROIT BUSINESS // June 1, 2015

BY LAND OR LAKE: THE ECONOMY ON THE MOVE

LOOKING BACK

BY THE NUMBERS: THE MICHIGAN ECONOMY

The floating supply line By Dustin Walsh dwalsh@crain.com

The Detroit Marine Terminal, located along the west side of the Detroit River, is the largest seaport in Michigan. The port connects shipping freighters from around the world through the St. Lawrence Seaway and Great Lakes. While the Detroit/Wayne County Port Authority oversees more than two dozen terminals in the region, the Marine Terminal is the only civic-owned terminal.

2014 DETROIT

MARINE TERMINAL IMPORTS

This cargo is almost exclusively steel and ore used in the automotive industry

Ships are nearly seven times more fuel efficient than trucks

SHIPS

60 SHIPS

One ship can move 300 rail cars worth of products, or more than 900 trucks.

The cargo holds of each ship haul product weighing in excess of

On June 3, 1985, Crain’s reported that two Canadian companies were considering enlargement of the rail tunnel connecting Detroit and Windsor. Now, plans are proceeding on a new rail tunnel beneath the Detroit River. More at crainsdetroit.com/30

Despite bridge plan, rail tunnel project travels toward finish By Bill Shea bshea@crain.com

While plans rapidly advance to build a $2 billion bridge over the Detroit River, backers of a $400 million project to build a modern rail tunnel under the waterway continue to seek funding and government approvals. The Continental Rail Gateway tunnel project has been in the planning and financing stages since it was formally launched in 2001, and is the result of another tunnel project that got its start 30 years ago this week. According to the June 3, 1985, edition of Crain’s Detroit Business, two rail companies bought the tracks that connected Detroit and Windsor via a twin-tube tunnel that opened in 1910, and they were seeking bidders on a study for possible enlargement of the tubes. The reason? So they could handle larger stacked rail cars used for the automotive industry. At the time, taller-stacked rail cars (and those of competing rail companies) were forced to use a ferry to cross the Detroit River, adding delays and costs to moving goods. What is known officially as the Michigan Central Railway Tunnel was

built for $8.5 million by the Detroit River Tunnel Co. for Canada Southern Railway and opened in October 1910 — long before the auto companies began building millions of large cars and trucks in metro Detroit and Ontario. The need to improve efficiency fueled Montreal-based Canadian Na tional Railways Ltd.’s 1985 purchase of the 8,373-foot-long tunnel from Consolidated Rail Corp. of Philadelphia, better known as Conrail. Canadian National, then owned by the Canadian government and privately owned, Calgary, Albertabased Canadian Pacific Railway Ltd. jointly bought the old Canadian Southern Railway line between Detroit and Niagara Falls for $25.2 million in a deal that included the tunnel, which has its Detroit entrance just southwest of the post office at West Fourth and Eighth streets. CN solely took over tunnel operations on May 1, 1985, from the Conrail-owned Detroit River Tunnel Co. It withdrew from the project a year later to focus on a tunnel project beSee TUNNEL, Page 16

In 2005, the Detroit Marine Terminal handled approximately 249,000 tons of cargo from 29 ships.

What is known officially as the Michigan Central Railway Tunnel was built in 1910, long before auto production was measured in the millions.

Source: Detroit/Wayne County Port Authority

[WIKIMEDIA COMMONS]

MUST READS of the week ... Time runs out for Hall of Fame boss

Learning: Sublime in the slime

The board that governs the money-losing Michigan Sports Hall of fame decided to part company with its longtime executive director, Page 18

Hoping to put more “Michigan” in its programs, the Michigan Science Center is taking its show on the road — and it’s quite the roller coaster ride, Page 10

20150601-NEWS--0004-NAT-CCI-CD_--

5/29/2015

5:20 PM

Page 1

CRAIN’S DETROIT BUSINESS // June 1, 2015

Developer Shapiro’s $10M gift to Beaumont honors parents By Dustin Walsh and Tom Henderson dwalsh@crain.com, thenderson@crain.com

Call Joe Haney President-Principal Certiﬁed Risk Architect

It’s time to rethink your insurance strategy 888.525.7575 | 586.323.5700 | sterlingagency.com

Sterling Insurance Group is a Michigan based company.

GET IN ON THE CONVERSATION

Amy covers the city of Detroit and entrepreneurship

Keep up with Amy at crainsdetroit.com/blogs AMY HAIMERL

TWEET @HAIMERLAD

Real estate developer Mickey Shapiro’s $10 million gift to Beau mont Hospital in Royal Oak was made as a tribute to his parents, Polish-born survivors of the Holocaust, and marks the health system’s largest philanthropic donation in the past 12 months. The gift by Shapiro, CEO of Farmington Hills-based M. Shapiro Real Estate Group , will help Beaumont renovate the 15,500-square-foot surgical intensive care unit, which will be named the Sara and Asa Shapiro Heart and Vascular Intensive Care Unit, Marc Sakwa, M.D., Beaumont’s chief of cardiovascular surgery, told Crain’s last week. The gift also creates the Mickey Shapiro Endowed Chair in Cardiovascular Surgery, Sakwa said. “I’m doing it for them. This is really my parents’ story,” said Shapiro in an article posted last week on the Beaumont Health website. Both his parents are still alive: His father is 92, and his mother is 85. Shapiro, who was born in a displaced person’s camp in 1947 in Stuttgart, Germany, two years before his parents emigrated to the Detroit area, told Crain’s Friday more about his parents’ survival stories. Together, they make for an epic tale, a combination of unlikely luck and determination, and a story that, if seen in a movie plot, might not even seem plausible. “My dad was put in Siberia prior to the war. It was what saved his life. If he hadn’t gone to jail, he would have been killed,” said Shapiro. He said that at age 14, his dad was caught hustling up a living in the black market for bicycles. “Every one was in the black market then,” said Shapiro. While his father was in Siberia, the Germans invaded Poland, and Shapiro said most of his dad’s relatives in the town of Koretz were later shot and killed. Asa was later conscripted into the Russian army, where he served out the rest of the war. Meanwhile, his mother and her family were living in a ghetto in Koretz. Shapiro said they got warning that the ghetto was going to be burned the next day and fled into the woods. His grandmother and an uncle were eventually killed, with his mother surviving by herself for weeks in the woods at age 11. Shapiro said that after wondering the countryside, she came across a farmer and asked him if he could use a milkmaid. Not if she was Jewish, he said. She said she was a Catholic, fleeing a mean stepfather.

“She said she would work for bread and milk,” said Shapiro. The farmer took her in and, like a good Catholic girl, she went to church each “I’m Sunday until the war’s end. doing it His father for them. and mother met after the This is and really my war quickly got parents’ married. “Everyone story.” was getting married,” said Mickey Shapiro, Shapiro. It was CEO of M. Shapiro time to start Real Estate Group the Baby Boom. A new life After arriving in the Detroit area, Asa, who spoke no English, got a job loading trucks at a local lumber yard. Three years later, his English improved, he bought the yard, and eventually it morphed into two businesses, ASA Builders Supply and ASA Cabinet Corp. Both are next to each other in Walled Lake, on what, ironically, is Easy Street. Asa still owns the business. Mickey became president of the companies in 1976 and said his brothers now run them. Shapiro is a 1969 graduate of Michigan State University. He was a communications major with a minor in business and planned to go to law school. While in college, he ran Mickey’s Hideaway, a popular teen nightclub on Grand River Avenue just off campus. “By the time I graduated, I employed several lawyers,” said Shapiro, who decided to remain in business instead. Shapiro’s real estate company was founded and has developed more than 6,000 homes in several states. M. Shapiro owns 18,000 mobile home pads and claims to be one of the largest private owners of manufactured home communities in the U.S. According to the company website, Shapiro’s investments include 5,000 apartment buildings, more than 1 million square feet of office space, 200,000 square feet of industrial space and 150,000 square feet of retail. The website also says his ownership of more than 2,000 acres of raw land in Oakland County makes him the largest private land owner in the county. In 2002, he was appointed by President George W. Bush as a council member of the United

States Holocaust Memorial Museum in Washington, D.C.

Fundraising home runs Shapiro’s gift to Beaumont follows the $6 million gift in November 2014 from former Compuware Corp. Chairman Peter Karmanos Jr. and his wife, Danialle. That gift was used to create the Karmanos Center for Natural Birth and the Danialle & Peter Karmanos Jr. Birth Center at the Royal Oak hospital. Beaumont also received a $1 million gift last year from the Ted Lind say Foundation to support the hospital’s Hope Center , renamed the Ted Lindsay Foundation Hope Center. The hospital system’s largest gift in the past 15 years was a $20 million gift in 2001 from Raj Vattikuti, founder of Farmington Hills-based outsourcing technology company Covansys Corp. , and his wife, Padma. That gift funded cancer research. Vattikuti donated $20 million to Henry Ford Health System in Detroit as well. In 2006, J. Peter Ministrelli, former partner at Chateau Land Devel opment Co. , and his wife, Florine, gave $15 million to Beaumont to fund cardiac and urological research. Heather Joslyn, assistant managing editor for Washington D.C.based The Chronicle for Philanthropy, said there’s a rising trend of wealthy individuals gifting money while still living. Joslyn said initiatives like the Giving Pledge spur more donors. The Giving Pledge is an initiative in which wealthy Americans pledge to gift half their wealth, which locally includes Quicken Loans Inc. founder and Chairman Dan Gilbert and 5Hour Energy drink creator Manoj Bhargava. “It’s not exactly peer pressure, but people are influenced by what their peers are doing,” Joslyn said. “We’re definitely seeing more people committing to giving wealth away at earlier ages, which is having a domino effect.” 䡲 Tom Henderson: (313) 446-0337 Twitter: @TomHenderson2

BANKRUPTCIES The following businesses filed for protection in U.S. Bankruptcy Court in Detroit May 22-28. Under Chapter 11, a company files for reorganization. Chapter 7 involves total liquidation. 䡲 FJN LLC , 37400 Jefferson Ave., Harrison Township, voluntary Chapter 11. Assets: $178,551.34; liabilities: $34,673.79. 䡲 Frank’s Holdings LLC, 37400 Jefferson Ave., Harrison Township, voluntary Chapter 11. Assets and liabilities not available. — Natalie Broda

DBpageAD_DBpageAD.qxd 5/20/2015 5:29 PM Page 1

Weâ&#x20AC;&#x2122;re thrilled to support Michigan Since pledging to support Michigan-based businesses through Pure Michigan Business Connect, Rehmann has provided more than 500 hours of pro bono service to companies in industries such as construction, manufacturing and healthcare. Itâ&#x20AC;&#x2122;s an exciting time for Michigan. Get in on that excitement by contacting us today.

Phil Bahr, CPA, CGMA Regional Managing Principal Southeast Michigan 248.458.7900 phil.bahr@rehmann.com

Steven B. Maltzman, CPA, CGMA Regional Managing Principal Southeast Michigan 248.579.1100 steven.maltzman@rehmann.com

*Learn more at michiganbusiness.org.

rehmann.com

20150601-NEWS--0006,0007-NAT-CCI-CD_--

5/29/2015

4:48 PM

Page 1

CRAIN’S DETROIT BUSINESS // June 1, 2015

CRAIN’S DETROIT BUSINESS

OPINION Bring job education to city’s unemployed J

obs, jobs, jobs. That was a subtext throughout the Detroit Regional Chamber’s Mackinac Policy Conference, which concluded Friday. Session after session repeated: One key to Detroit’s future is increasing the income levels of its residents through education, training and jobs. Data presented by J.P. Morgan Chase & Co. showed that 61 percent of Detroiters are ages 16 to 64 — workforce age, if you include teen jobs. Almost one-fifth live in poverty. And compared to other major cities, Detroit’s working residents work for lower wages and mostly outside the city — because that’s where the lower-skilled jobs are. Low educational attainment rates drive poverty and unemployment. Detroit also has fewer private sector jobs — versus nonprofit and government jobs — than other major cities. We need a Marshall Plan approach to bring job-specific education and skills to the unemployed — who are employable. More than 300 entities in Detroit do some type of workforce program, many as a piece of their core activities. Pamela Moore, CEO of perhaps the largest, Detroit Employment Solutions Corp., called for a case management system to coordinate services among them. That’s a start. But there’s another step, a big step. Detroit has an opportunity to rebuild a manufacturing base by appealing to auto suppliers. Detroit Manufacturing Systems, a collaboration of two suppliers, has hired 1,000 mostly Detroit residents on the city’s west side. And on Friday, we learned that American Axle plans to add 900 Detroit jobs in the next several years; it’s not yet clear what the pay scale is. We imagine other suppliers would bring some off-shore jobs home if they could pay tier-two wages for lower-skilled jobs. For unionized suppliers, a lower-tiered wage would require the endorsement of the United Auto Workers. If the UAW signed on to create more jobs for Detroiters, it could lift hundreds of residents and their families out of poverty. One Mackinac conference attendee asked: Is organized labor committed to creative compensation strategies to help restore manufacturing jobs to the cities? The answer was vague. This is a critical summer for auto contract talks. Perhaps once those talks are resolved, the right people can lead the discussion of how best to bring manufacturing jobs to the city.

TALK ON THE WEB Re: Retire Straits of Mackinac oil pipelines to protect lakes, island Amen. Let’s hope that our leaders’ desire to keep Michigan pure trumps their desire to do the bidding of oil companies. Ray Smith

Re: Snyder clashes with fellow Republicans on union pay How can the state of Michigan, or any contractors that sign on with

Reader responses to stories and blogs that appeared on Crain’s website. Comments may be edited for length and clarity.

the state, even consider getting the best available skilled workers when they offer tenders and out-of-state people with the skills can find places that pay? So, Michigan gets the less skilled people and the states that pay union scale get the better workers. It is said that if you

I OTHER VOICES Janine Janosky is dean of the College of Education, Health and Human Services and professor in the Department of Health and Human Services at the University of Michigan-Dearborn.

Zev Davis

Competition in the free markets — not political bureaucrats seeking reelection votes — is the truest path for the best skilled-trades workforce to create value. The conversation that unions are in the best interest of qualified talent is so tired and disconnected from the information age that has empowered individuals to promote their marketplace value. NoSpinJustFacts

LETTERS

State’s educators must be held accountable Editor: The May 25 editorial “State must respond to education decline” read as if ghost-written by the head of the Michigan Education Association. More money and more “teacher training” … really? How many times do we have to see these failed “solutions” trotted out? One can attribute Michigan’s pathetic education results to one overarching cause: the lack of public school teacher and administrator accountability in a culture where re-

Send your letters: Crain’s Detroit Business will consider for publication all signed letters to the editor that do not defame individuals or organizations. Letters may be edited for length and clarity. Email: cgoodaker@crain.com

sults don’t actually matter and no one has to worry in the slightest about ever being held to account or fired for poor performance. Can anyone imagine heads not rolling in

Education, training, partnerships can keep city, state competitive ncreasing competitiveness in Detroit and Michigan requires multifaceted approaches that include educating and training a labor force for the technically advanced jobs of the future. Created through the intersection or convergence of disciples, integrated education and training programs, as well as employer-educator partnerships, can meet labor force demands while tackling problems otherwise deemed intractable. The convergence of not only resources, including those of educa-

buy cheaply, you end up paying dearly.

tional institutions and employers, but also disciplines within educational institutions, has tremendous potential to prepare the local and state labor force for current highskilled, high-paying jobs as well as ensure an adequate pipeline of skilled workers for future jobs. This proactive approach is also taking the form of employer-educator partnerships, such as those facilitated by the Aspen Institute’s Skills for America’s Future program, which fosters connections between community colleges and employ-

ers. More often, employer-educator partnerships have been initiated by employers in their local communities; for example, partnerships between the Boeing Co. and educational institutions, which range from pre-kindergarten to college levels, have informed curricula to align with their current and future labor force needs. Educational institutions have started to evolve to meet labor market needs in the public health secSee VOICES, Next Page

a private company that was producing this pathetic quality? Until the state gets serious and someone has the will and fortitude to take on the teachers unions, the circle-the-wagons culture of protected incompetence and poor results will only get worse and our children will continue to bear the brunt. Pleas for more money are a sure sign that nothing is going to change. T. Scott DuBose Birmingham

Where’s Keith’s column? Keith Crain, founder and editor-inchief of Crain’s Detroit Business and chairman of Crain Communications Inc., is on medical leave while recovering from heart valve replacement surgery on May 15. We look forward to his return — and to his column, which normally appears in this space. Any correspondence, or well wishes, should be directed to the Office of the Chairman, 1155 Gratiot Ave., Detroit, MI 48207.

20150601-NEWS--0006,0007-NAT-CCI-CD_--

5/29/2015

11:21 AM

Page 2

CRAIN’S DETROIT BUSINESS // June 1, 2015

A2-to-TC rail should be a priority, Dem party chair says LINDSAY VANHULLE Capitol Briefings lvanhulle@crain.com TWITTER: @LindsayVanHulle

MACKINAC ISLAND — Michigan should have a train connecting Ann Arbor and Traverse City, Michigan Democratic Party Chairman Lon Johnson told me last week during a Grand Hotel porch chat. Johnson, in town for the Mackinac Policy Conference, said passenger rail connecting Southeast Michigan with up north cities like Cadillac, Traverse City and Petoskey should be on the top of policymakers’ to-do lists. “How do we create a Michigan where people can stay and succeed?” said Johnson, who lives in Kalkaska County. “That’s how we have to look at rail. … These are investments in the future.” Traverse City-based nonprofit Groundwork Center for Resilient Com-

munities — formerly the Michi gan Land Use In stitute — has been one of the leading voices calling for the new rail service. Lon Johnson: Currently, naPushes Ann Arbor- tional passenger Traverse City line. rail provider Amtrak runs three lines to Chicago that start in Detroit, Port Huron and Grand Rapids. But who will pay for it? In 2013, during my previous gig as a business reporter for the Lansing State

Journal, I reported that the Michigan Department of Transportation subsidized Amtrak’s three existing routes — Wolverine, Blue Water and Pere Marquette — to the tune of $25 million, and none make money. And Congress has proposed federal budget cuts for rail. Johnson said the answer to the funding gap will require buy-in from local, state and federal governments and the private sector. “It’s going to take time,” he said, “but it’s an investment.” Comings and goings

䡲 Matthew Dobler, a Republican

strategist who has worked on national campaigns, has been hired as political director for the Michigan Republican Party, party officials said. Dobler previously worked as state field director for the Republican National Committee, as well as deputy political director for the California State Assembly Republican Caucus last year. He also has been a campaign manager for races in Florida, Oregon and Virginia. He has a bachelor’s degree in political science from California State University San Marcos. 䡲 Kris Young has joined the external affairs team of AT&T Michi-

gan, the company said. Young, 35, previously worked for the state House as session manager for House Democratic Floor Leader Rep. Sam Singh, D-East Lansing, and previous floor leaders Rep. David Rutledge, D-Superior Township, and former state Rep. Rudy Hobbs, D-Southfield. Young also served as legislative director for former state Rep. Maureen Stapleton, D-Detroit, and as legislative director for and senior adviser to former state Sen. Buzz Thomas, D-Detroit. 䡲 Lindsay VanHulle: (517) 657-2204 Twitter: @LindsayVanHulle

VOICES, From Previous Page

tor. According to the Bureau of Labor Statistics, health care and social assistance jobs in December 2014 accounted for 17 percent of the total job openings, up from 14 percent the previous year. In addition, employment of health educators and community workers is projected to grow 21 percent from 2012-22, faster than the average for all occupations. Further development in this area could be advantageous for Detroit and Michigan. As an example, integrative education and training programs focusing on community health have the potential to dramatically impact competitiveness and productivity, especially given that the economic vitality of a community is highly dependent on the health of the citizens. In addition to simply having adequate numbers of healthy individuals to contribute to the labor force, businesses increasingly consider the health of the population prior to moving to or expanding within a particular geographical location due in large part to the impact of preventable, chronic disease (e.g., obesity and Type 2 diabetes) in terms of health care costs and lost productivity through absenteeism and presenteeism. Preparing our workers for these technically advanced jobs of the future requires that educational institutions design new, innovative programs at the intersection of disciplines, as recommended by the U.S. Council on Competitiveness. Through the convergence of disciplines as well as partnerships between employers-educators, the available and ready labor force within Detroit and Michigan could be strengthened, resulting in increased competitiveness.

I expec¶ my bank §o:

Know my business, not just my balance. Some business owners expect more than just an account. They expect their bank to understand their business. When it’s time, come to Comerica. And discover why we’re the leading bank for business,* ranked among the top 5% of U.S. banks with distinctive quality.**

RAISE YOUR EXPECTATIONS.

Business

Wealth Management

Personal

comerica.com MEMBER FDIC. EQUAL OPPORTUNITY LENDER. *Based on commercial and industrial loans as a percentage of total assets. Data provided by Thomson Reuters Bank Insight, June 2014. **Greenwich Associates is a leading provider of global market intelligence and advisory services to the ﬁnancial services industry. For Middle Market, the Greenwich Excellence Awards are based on nearly 13,000 market research interviews with U.S. companies with sales revenues of $10-500 million, and honorees were recognized by their customers as providing superior quality of products, service and coverage. Among more than 750 banks evaluated, Comerica ranked within the top three percent of banks with “distinctive quality” and “performing at a differentiated level relative to peers.” For Small Business, the Greenwich Excellence Awards are based on more than 15,000 market research interviews with U.S. companies with annual revenues of $1-10 million, and honorees were recognized by their customers as providing superior quality of products, service and coverage. Among more CBP-5028 04/15 than 750 banks evaluated, Comerica ranked within the top ﬁve percent of small business banks with “distinctive quality” and “performing at a differentiated level relative to peers.”

20150601-NEWS--0008-NAT-CCI-CD_--

5/29/2015

12:29 PM

Page 1

CRAIN’S DETROIT BUSINESS // June 1, 2015

Honigman absorbs Chicago’s Schopf & Weiss By Dustin Walsh dwalsh@crain.com

Honigman Miller Schwartz and Cohn LLP is absorbing the Chicago litigation law firm Schopf & Weiss LLP as part of its Midwest growth strategy. Effective today, Schopf & Weiss’ 14 attorneys, and two new partner hires, are part of Honigman’s practice. Terms were not disclosed, but Detroit-based Honigman absorbed Schopf & Weiss’ clients and employees. Jason Rosenthal, managing partner at Schopf & Weiss, will maintain that role under Honigman.

Honigman CEO David Foltyn said the similarities between the firms made the merger an easy decision. “The culture is identical; our atDavid Foltyn: Two torneys went to firms’ cultures are the same law identical. schools as their attorneys,” Foltyn said. “Both firms fight above our weight class and are filled with driven lawyers who come from real pedi-

greed backgrounds.” Foltyn and Steve Weiss, chairman at Schopf & Weiss and now a partner at Honigman, were University of Michigan Law School classmates. The newly added firm, at 1 S. Wacker Drive in downtown Chicago, concentrates on litigation, specializing in professional liability and insurance recovery. The new office also hired two attorneys away from Chicago competitors. Rene Ghadimi, counsel at Skadden, Arps, Slate, Meagher & Flom LLP , and Gregory Morris, of counsel for Paul Hastings LLP , will

serve as partners in Honigman’s Chicago office. Foltyn said the merger will help recruit top attorneys and bolster Honigman’s litigation practice. The firm now has more than 270 attorneys in Detroit, Ann Arbor, Bloomfield Hills, Lansing, Kalamazoo and Chicago. The deal is expected to boost revenue, Foltyn said, but he declined to reveal by how much. Honigman reported 2014 revenue of $196 million to American Lawyer. Other local law M&A deals have occurred this year, including Dykema Gossett PLLC’s absorption of the 118-

attorney, San Antonio-based firm Cox Smith Matthews Inc. That deal, effective May 1, made Dykema Gossett the largest law firm based in Detroit, with 450 lawyers in 15 offices. Foltyn said Honigman has no immediate plans for future big-city expansions beyond the Chicago office. “We don’t subscribe to the ‘if you build it, they will come’ theory; we’re very strategic,” he said. “We intend to focus on Chicago and grow that office to become a real presence in that market.” Dustin Walsh: (313) 446-6042 Twitter: @dustinpwalsh

NEI deadline near for $10K grants for small businesses Applying for grant The application for a $10,000 grant from the New Economy Initiative has questions asking how a business growth idea will improve the applying business and the city. Last year, most applicants’ needs fell into these categories:

Sales and marketing Equipment Adding or expanding services New staff Physical improvements

By Amy Haimerl ahaimerl@crain.com

The clock is ticking — less than a week remains for small-business owners to apply for $10,000 grants from the Detroit-based New Econo my Initiative. On June 4, the clock stops, and the judges will start reviewing applications to choose 30 entrepreneurs who will receive grants to grow their business. Any firm based in Detroit, Hamtramck and Highland Park is eligible if it is at least 3 years old and has annual revenue of less than $750,000.

Last year, for example, Hamtramck-based GLEEOR Inc. won a grant to buy a skid steer loader to expand its landscaping and snow removal business. Meanwhile, the House of Morrison Shoe Repair in Detroit pitched an idea to create an apprenticeship program that would teach unemployed Detroiters how to restore leather goods. And Alicia’s Cleaners and Alterations in Hamtramck needed to upgrade its point-of-sale system and buy a same-day press so it could expand. The stories of who won are as diverse as the city. In fact, 79 percent

of applicants were minority-owned businesses and more than half were women-owned. That’s a trend that Dave Egner, executive director of NEI, hopes continues with the second annual competition. While investment flows into downtown and Midtown and resources for tech entrepreneurs are growing, this is one way for Detroit’s neighborhood businesses to harness growth opportunities. “We were blown away by the response of great ideas for business growth put forth by so many differ-

ent types of small businesses during the first year of NEIdeas,” Egner said. “It’s been rewarding to not only see the winning businesses grow, but also see many of the applicants get better connected to the community resources. NEI will also offer two $100,000 grants to firms with revenue between $750,000 and $5 million. Applications for that part of the NEIdeas program are due June 25. Both forms can be found online at neideas.org. Amy Haimerl: (313) 446-0416 Twitter: @haimerlad

Nominees sought for Health Care Heroes

Financing Experience

In Your Corner.

Crain’s Detroit Business seeks nominations for Health Care Heroes, a special report on health care professionals that will run in the Aug. 17 issue. The program honors innovators and patient advocates dedicated to saving lives or improving access to care. The five categories of winners are:

Ŷ Financial matters, business and corporate matters, ﬁnancial transactions, real property, acquisition and commercial ﬁnancing transactions.

Corporate achievement in

Ŷ Startup to mid-size companies, corporate governance and private equity matters.

Advancements in health care: Honors a company or individual responsible for a discovery or for developing a procedure, device or service that can save lives or improve quality of life.

health care: Honors a company that has created an innovative health benefits plan or solved a problem in health care administration.

Physician: Honors a physician whose performance is considered exemplary. Allied health: Honors an individual from nursing or allied health fields who is deemed exemplary by patients and peers. Trustee: Honors leadership and distinguished service on a health care board. A panel of health care judges will choose the winners. Questions? Contact Jay Greene at (313) 446-0325 or jgreene@crain.com

Contact Kristen Veresh at kmveresh@varnumlaw.com

Metro Detroit

Grand Rapids

Kalamazoo

Grand Haven

Lansing

The deadline for nominations: Monday, June 22

20150601-NEWS--0009-NAT-CCI-CD_--

5/29/2015

9:56 AM

Page 1

CRAIN’S DETROIT BUSINESS // June 1, 2015

Insurers,patients embrace narrow provider networks By Jay Greene jgreene@crain.com

A growing number of health insurers in Michigan are offering various versions of “narrow provider networks” to customers on the state’s public health insurance exchange — and in the open market to employers — in an effort to lower premiums and attract greater market share. Consumers rejected these networks in the managed care heydays of the 1990s, but more recent survey data show that individuals in Michigan are more willing to switch from a broad provider network to a more exclusive, or narrow, network even if that means less choice, said the Ann Arbor-based Center for Health care Research & Transformation. “Consumers are saying, ‘I am willing to trade network size for price,’ ” said Marianne Udow-Phillips, the center’s director. She cited a survey the center conducted last fall on 1,000 Michiganders. “In the 1990s, they wanted choice of hospitals and doctors,” UdowPhillips said. “It is different now” because insurance premiums have skyrocketed. The center’s report, “Health Plan Selection: Factors Influencing Michiganders’ Choice of Health Insurance,” found that 92 percent of respondents with individually purchased insurance cited at least one cost measure — premium price, deductible, co-pay or coinsurance — as a very important factor in their selection of a health plan. Nearly 20 percent of those with individual coverage had changed primary care physicians to join a narrow network and pay a lower premium. The Michigan State Medical Society said it “strongly opposes the use of narrow physician networks that deny patients access to, or attempt to steer patients toward, certain physicians primarily based on cost of care.” Health plans in Michigan and elsewhere decided to offer more narrow networks after what happened several years ago in Massachusetts when the state’s insurance exchange began offering them, Udow-Phillips said. “Blue Cross (Blue Shield of Massachusetts) offered what products they had and were totally surprised that (competing) narrow networks got the lion’s share of the individual market,” she said. “Plans everywhere, including Michigan, took notice.” The number of narrow networks in Michigan has increased this year to seven from two last year, she said. Those seven are referred to as “exclusive provider” organization plans — industry lingo for narrow networks. Of the rest of the 190 health plans on the Michigan health insurance exchange, 71 are the broader preferred provider organization plans, and 107 are the more tightly controlled health maintenance organization plans. The lure of savings Both Blue Cross Blue Shield of Michigan and Health Alliance Plan offer narrow networks. HAP calls them “high-performance networks,” while Blue Cross uses the

What is a narrow provider network? Narrow provider networks are groups of hospitals and physicians in a limited geography that patients can select for discounted prices. Under the narrow network concept, hospitals and physicians agree to join these networks and accept lower prices in exchange for a potentially higher volume of reimbursed services. Although the smaller networks give patients fewer choices, they are more likely to select one of the providers in the network, which boosts service volume. Patients who seek care outside of the narrow network pay higher prices.

“exclusive provider” terminology. The state’s other large insurer operating in Southeast Michigan, Grand Rapids-based Priority Health, does not offer a fully insured narrow network, although it has submitted an application to the state for several types of narrow networks for individuals and small businesses. Priority Health has off ered narrow networks to large, self-insured employers for several years. Steve Selinsky, HAP’s vice president of sales, said the insurer’s highperformance organization plan, called Health Choice, is offered either through Henry Ford Health Sys tem in Detroit or Genesys Health Sys-

tem in Grand Blanc. “The Choice networks are very attractive to individuals, and price is a big driver,” Selinsky said. “We offer it to small-group customers, but while they are attracted to price, they still have not chosen to replace” their broader network plans. Selinsky said the Choice plans work like this: Members either must use a Henry Ford hospital and physician or use a Genesys hospital or physician, depending on their plan. They pay out of pocket if they go outside the network, unless a necessary service isn’t offered in-network, he said. “We have learned how critical education is on the sales process with

the consumer and the broker,” Selinsky said. “They are not solely purchasing on price. They need to view the (limited) providers in the network because it is different than what” has been typically offered in Michigan. Udow-Phillips said narrow networks are also beginning to be offered by employers to reduce costs, although the uptake is slow. In a 2014 McKinsey & Co. study of exchange plans, nearly half of the 2,366 unique provider networks operating nationally qualified as narrow networks. McKinsey found that products with broad hospital networks had median premiums 13 percent to 17 percent higher ($29 to $59 per member, per month) than plans with narrow networks. Last year, the Congressional Bud get Office said narrow networks are helping drive down health care costs. The CBO said the Affordable Care Act is expected to cost $142 billion less than previously projected from 2015 to 2024, partly because of narrow networks’ lower premiums.

But physicians and consumer advocates worry that some customers are choosing plans that may exclude their doctors or otherwise not meet their coverage needs or expectations. For example, patients in a narrow network might get stuck with high medical bills if they need surgery at a hospital that is in the network but the anesthesiologist delivering the service is out of network. The National Association of Insurance Commissioners is drafting model laws on the adequacy of narrow provider networks that will be ready for 2016. Early last year, the Michigan Department of Insurance and Financial Services enacted regulations governing the adequacy of narrow provider networks. The 11-page state rulebook requires sufficient primary and specialty care physicians, a hospital within 30 minutes’ travel time, and mental health and substance abuse professionals. 䡲 Jay Greene: (313) 446-0325 Twitter: @jaybgreene

2,900 MILES OF HIGH-SPEED MICHIGAN

123Net has a high-speed ﬁber optic network stretching 2,900 miles across Michigan, and we’re not stopping anytime soon. We’re always ready to go the extra mile, ensuring Michigan businesses have access to reliable, high-capacity connectivity.

YOUR BACKBONE FOR BUSINESS F I BE R • C OL OC ATI ON • VOI C E • W I RELESS

866. 460. 3503

123. NET

20150601-NEWS--0010,0011-NAT-CCI-CD_--

5/29/2015

11:26 AM

Page 1

CRAINâ&#x20AC;&#x2122;S DETROIT BUSINESS // June 1, 2015

On the rise Meet

Dominic A. Paluzzi Attorney. Advisor. Advocate. National Data Privacy and Cybersecurity Practice Best wishes to St. John Hospital & Medical Centerâ&#x20AC;&#x2122;s 55th Annual GUILD Dinner on June 3rd. %PNJOJD " 1BMV[[J WJDF DIBJS

McDonald Hopkins PLC 8PPEXBSE "WFOVF 4VJUF #MPPNĂśFME )JMMT .* t James J. Boutrous II, Detroit Managing Member $IJDBHP t $MFWFMBOE t $PMVNCVT t %FUSPJU t .JBNJ t 8FTU 1BMN #FBDI mcdonaldhopkins.com

Carl J. Grassi, President

[MICHIGAN SCIENCE CENTER]

Connect with Michigan small business. There is one way to connect with Michigan small business, help make our business climate healthier and keep our economy growing: the Small Business Association of Michigan. This is the only organization that links you statewide to the 23,000+ entrepreneurs you need to know and who need to know you.

Connect today. Itâ&#x20AC;&#x2122;s the smart way to make Michigan stronger.

800-362-5461 www.sbam.org

The roller coaster as classroom Michigan Science Centerâ&#x20AC;&#x2122;s traveling program brings STEM learning to state By Sherri Welch swelch@crain.com

The roller coaster overhead slowly climbs a 90-degree vertical section of track before dropping over the top to plunge toward the ground at 50 mph â&#x20AC;&#x201D; lunging into a barrel roll, looping and spinning into a full rollover. The adrenalin-inducing Thunderhawk at Michiganâ&#x20AC;&#x2122;s Adventure has long been a staple of summer vacation. Now, through a Michigan Science Center program, the seven roller coasters and other rides at the West Michigan amusement park are also part of physics and other STEM les-

sons for visiting students â&#x20AC;&#x201D; while class is still in session. Last week, the Detroit-based science center took its traveling programs to the theme park near Muskegon for the first time after hosting a similar program for the past two summers at Cedar Point in Sandusky, Ohio. Besides physics, the theme park program reinforced science concepts such as renewable energy and fluid dynamics with hands-on learning. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve moved away from the See Next Page

20150601-NEWS--0010,0011-NAT-CCI-CD_--

5/29/2015

11:26 AM

Page 2

CRAIN’S DETROIT BUSINESS // June 1, 2015

[MICHIGAN SCIENCE CENTER]

It looks like a trip to Cedar Point (left), but it’s actually a STEM class. For the past two summers, kids have learned about science through the Michigan Science Center’s traveling program.Then there’s the hands-on favorite: making slime (above).

From Previous page

‘build it and they will come’ model to specifically looking at where the needs ... interests and holes in the STEM pipeline are ... and answering that call in a way that makes business sense,” said Tonya Matthews, president and CEO of the Science Center. End to boredom The program at Michigan Adventure and Cedar Point is among those the Michigan Science Center has taken to schools, libraries and local festivals on a contract basis since its reopening in late 2012. Last year, the traveling science program served 60,000 to 65,000 students and families, Matthews said. That was up from 48,000 in 2013. The jump in demand for the program “stunned us,” she said. “We had clearly tapped into a pent-up need.” Too often, engineering and science are presented as dry and boring subjects, Robert Magee, executive director of the Engineering Society of Detroit, wrote in an email. “Kids may not realize that it’s en-

gineering that builds things like iPhones, fast cars, and, yes — roller coasters,” Magee said. The Engineering Society’s programs — which challenge middle school students to design a city set 150 years in the future and high school students to design an energy-efficient, smart home — “translate engineering to everyday life and real careers that are in high demand here in Michigan,” Magee said. “What the Science Center is doing at Michigan’s Adventure (also) fits that mission.” The traveling science program began when the Science Center started taking its programs to schools that were challenged by the cost of busing students to the Detroit museum, Matthews said. The center geared lessons to students from pre-kindergarten through eighth grade, with demonstrations and hands-on activities such as making slime — a perennial favorite for students, Matthews said — or shooting off rockets. Contracting the Science Center to bring its programs on site became an economical option for school systems trying to develop interest in the so-called STEM fields of science, technology, engineering and mathematics — and it grew from there. State impact “Around that same time, we were figuring out how to embrace the ‘Michigan’ in the Michigan Science Center,” Matthews said. “We realized with just a little thought and a little modification, we could take the traveling science program a little further.” Last year, Science Center staff traveled to locations in 31 Michigan counties, including schools, libraries and festivals such as River Days in Detroit; Arts, Beats & Eats in Royal Oak; Maker Faire Detroit; and the Motown

“Kids may not realize that it’s engineering that builds things like iPhones, fast cars, and, yes — roller coasters.” Robert Magee, Engineering Society ofDetroit

Winter Blast in downtown Detroit. Through word-of-mouth referrals between schools and libraries and some Tonya Matthews: direct marketing Embracing the to associations of “Michigan” in each, the Science Science Center. Center is also moving into areas like Toledo and even Wisconsin, which has a neighborly relationship with Upper Peninsula communities, Matthews said. Schools, community groups, libraries and other groups contract with the center to bring the traveling science experiences to groups small and large. Prices range from $125 to $1,400 for the programs, depending on the number of lessons or workshops offered and the duration of each. Program fees cover the cost of time, materials, travel and program development, said Charles Gibson, the Michigan Science Center’s outreach coordinator. The program generated roughly $65,000 in revenue last year, up from about $30,000 the first year, Matthews said. The bulk of that is from fees, with the remainder coming from sponsorships through groups including the Community Foundation for Southeast Michigan , Comerica Bank and Eaton Corp. The Michigan Science Center generated $5.1 million in total revenue last year and $4.8 million in operating costs, according to its unaudited financials, Matthews said. With a $300,000 operating excess, it closed the year with about $2.35 million in operating capital. The goal is to move the reserves up to the $5 million mark to give the center a full year of operating capital, she said. Once that reserve is in place, Matthews said, the plan is to look at new signature exhibits for the Science Center. “We need to reflect modern technology. ... We don’t yet do autonomous driving, for example,” or robots, she said. “We’re the Science Center. ... We have to prepare kids for that world.” 䡲 Sherri Welch: (313) 446-1694 Twitter: @SherriWelch

Marketing Management Strategic Communications Business Development Services Executive Suite Services Special Solutions

20150601-NEWS--0012,0013-NAT-CCI-CD_--

5/29/2015

11:32 AM

Page 1

CRAIN’S DETROIT BUSINESS // June 1, 2015

The venerable Grand Hotel has added two new suites as part of an ongoing multimillion-dollar makeover. See the story on the Mackinac landmark on M17. [COURTESY OF GRAND HOTEL]

2015 Mackinac Policy Conference highlights Panelists: Detroit is nation’s ‘comeback story’

Generous Donation Made by

SUNDAY, JUNE 14, 2015 MEADOW BROOK HALL 1:00 PM–4:00 PM

To benefit Macomb Community College Applied Technologies Programs and Oakland Community College Culinary Studies Institute.

THANK YOU TO OUR GENEROUS SPONSORS IMPERIAL Bagger Daves Great Lakes Wine & Spirits JEROBOAM Bacardi Bodman PLC MAGNUM Atlas Oil Celani Family Vineyards Huntington Bank JP Morgan Chase & Co. Meijer MillerCoors MP Tool & Engineering Orlans Group Plum Market RGA Model Management Ryder Saks Fifth Avenue The Suburban Collection UHY Advisors, Inc. MEDIA Crain Communications Inc dBusiness HOUR Detroit News/Talk 760 WJR

ENTERTAINING AutoRep Sales Company Comerica Corporate Eagle DTE Energy Foundation Hylant Korotkin Insurance Group Michigan Restaurant Association Thomas Sebold & Associates Inc. Universal Container Corp. RECIPE Cambridge Consulting Group Frank Campanale Conveyor Handling Gary & Kay Cowger Alphonse S. Lucarelli Mercer Culinary Merrill Lynch Michigan Licensed Beverage Association Rugiero Promise Foundation Jackie & Neil Sefferman Z Ballerini

For more information or to purchase tickets visit www.thegardenpartymichigan.org

Detroit is America’s “comeback story,” panelists key to the resolution of the city’s historic bankruptcy told Mackinac Policy Conference atSteven Rhodes tendees last week. Since Detroit emerged from bankruptcy, now-retired U.S. Bankruptcy Steven Judge Rhodes , Chief U.S. District Gerald Gerald Rosen Judge Rosen and former Emergency Manager Kevyn Orr have been on the speaker circuit. It almost seems like a book tour. Before long, maybe it will be. Kevyn Orr Rhodes and Rosen are planning to write books about the bankruptcy experience. Rhodes told Crain’s Publisher Mary Kramer his book would be a personal account; Rosen said he would write about the people involved in the process. Meanwhile, they both reported Thursday in a forum at the conference that interest in Detroit is surging. “People are rooting for Detroit,” said Rhodes. “It’s an underdog story.”

More coverage Read about state policy issues like education and talent beginning on Page M1 and at crainsdetroit.com. Darren Walker , CEO of the Ford Foundation and the largest contributor to the “grand bargain,” compared Detroit today to where Harlem was in the 1980s — before a surge of reinvestment made Harlem more diverse racially and economically. “We are in the business of hope at the Ford Foundation,” said Walker, sharing the panel with Rhodes, Rosen and Orr. “There’s no better place in Darren Walker America for hope than Detroit. Everybody wants Detroit to succeed. America wants Detroit to succeed.” Walker said the foundation board would meet in Detroit in June — for the first time since it moved in 1948.

Michauto plans to tout state’s auto mobility sector Michauto, an automotive-centric initiative inside the Detroit Regional Chamber, unveiled a new plan at the Mackinac Policy Conference to promote Michigan’s auto mobility sector. The initiative includes a coalition of stakeholders, including the Michigan Economic Development Corp ., Business Leaders for Michigan , Michigan Department of Transportation and the University Research Corridor . Thus far, the group has mapped the 28 existing facilities that play a role in bringing

advanced mobility technology to market. “Other regions are fighting for this technology and these jobs, and it is important for us to emphasize that Michigan is at the forefront of the development of the connected vehicle,” Glenn Stevens , vice president of Michauto and strategic development for the chamber, said in a statement. The mobility coalition’s objectives include a commitment to build up infrastructure to support future mobility development, sell the sector as part of Michigan’s brand for economic development and ensure the state’s secondary and higher education systems are teaching the right courses for mobility demand. No specific investment amount has been identified for the initiative.

Bill Ford: Fewer car sales in automakers’ future Ford Motor Co.’s future and that of other automakers is going to involve fewer cars and the industry needs to become one with that, Ford Executive Chairman Bill Ford said during his remarks at the Mackinac Policy Con ference. Although it’s a non-intuitive notion, Ford tied the idea to his company’s roots in making people’s lives better through Bill Ford: “It’s how higher pay in the do we provide free- factories and afdom of mobility.” fordable transportation. And, he said, “if it’s about making people’s lives better, it’s how do we See Next Page

20150601-NEWS--0012,0013-NAT-CCI-CD_--

5/29/2015

11:22 AM

Page 2

CRAINâ&#x20AC;&#x2122;S DETROIT BUSINESS // June 1, 2015

Silver sees Clinton as Demsâ&#x20AC;&#x2122; nominee, open GOP field

äĄ˛ As for Louisiana Gov. Bobby Jin-

Mike Rowe videos tout skilled-trades careers Mike Rowe, who built his TV career by challenging the notion that vocational and technical careers are dirty work, created a series of videos for the Michigan Economic Development Corp. aimed at teaching K-12 students about careers in health care, information technology, construction and advanced Mike Rowe: Videos manufacturing. The video are to dispel myths about skilled trades. campaign, launched at the Mackinac Policy Conference, is meant to dispel myths that skilled trades jobs are low paying, low demand and low skill. Tom Daldin , host of the PBS show â&#x20AC;&#x153;Under the Radar Michigan,â&#x20AC;? will appear in videos for kindergarten through fifth-grade students. (See Page M16 for Crainâ&#x20AC;&#x2122;s reporter Kirk Pinhoâ&#x20AC;&#x2122;s interview with Rowe.) Contributing: Mary Kramer, Kirk Pinho, Cindy Goodaker, Lindsay VanHulle

30+ showrooms | endless possibilities

Duralee, suite 38

!3 0!24.%23 9/5 '%4 4/ &/#53 /.

Baker Furniture, suite 60

"5),$).' 9/52 "53).%33

BIG BEAVER (16 MILE)

7(),% 7% &/#53 /. &).!.#).' )4

MAPLE (15 MILE)

RD DWA WOO

Nate Silver , author, statistician and founder and editor of ESPN â&#x20AC;&#x2122;s FiveThirtyEight.com , had a lot of things to say about the 2016 presidential election during his remarks at the Mackinac Policy Conference. Among the highlights: äĄ˛ If you want to bet on a winner now, pick Hillary Clinton â&#x20AC;&#x201D; not because sheâ&#x20AC;&#x2122;s a shoo-in, but because she appears to be a virtual lock for the Democratic nomination with a long list of endorsements and no current meaningful opposition. The GOP primary is too fragmented to know who the eventual winner will be. â&#x20AC;&#x153;The GOP has a cat-herding problem,â&#x20AC;? Silver said, with a â&#x20AC;&#x153;fivering circusâ&#x20AC;? of overlapping interest groups within the party. Silver puts Wisconsin Gov. Scott Walker and U.S. Sen. Marco Rubio of Florida slightly ahead of former Florida Gov. Jeb Bush , who has not accumulated many endorsements.

Aspects of two competing education reform proposals for Detroit schools should be adopted, Mayor Mike Duggan said last week. Duggan said during his remarks at the Mackinac Policy Conference that Detroit Public Schools should Mike Duggan: DPS return to control should return to of an elected control of elected school board but school board. that the board should have to report to a financial review board, similar to the city. Gov. Rick Snyder has called for the creation of a new school district for Detroit. Under Snyderâ&#x20AC;&#x2122;s plan, DPS would continue with emergency manager leadership and with an elected school board only to pay off the districtâ&#x20AC;&#x2122;s debt. The state would assume between $53 million and $72 million of that liability per year. A City of Detroit Education District would be created to operate the schools with an appointed sevenmember school board, with four members appointed by the governor and three appointed by the mayor. Elected leadership on the board would be phased in over six years. The Coalition for the Future of Detroit Schoolchildren has called for DPS to be removed from emergency management and the state to assume some of the districtâ&#x20AC;&#x2122;s debt. Duggan also called for the implementation of a Detroit Education Commission, which the coalition â&#x20AC;&#x201D; composed of a variety of stakeholders including business, nonprofits, education and labor â&#x20AC;&#x201D; proposed

RJ Thomas, suites 77, 80, 82 & 90

CROOKS

Author Nate Silver.

Duggan: DPS should return to elected board, oversight

to be responsible for opening, closing and siting schools in Detroit. Members of the commission would be appointed by the mayor. Its members also would perform an annual analysis of demographic trends and school performance to determine where better schools are needed, the report says. The commission also could oversee areas such as transportation, enrollment and special education. â&#x20AC;&#x153;If we started right now, we could have the DEC in place by the end of the year,â&#x20AC;? Duggan said. The coalition in a 28-page report released two months ago also called for the dissolution of the Education Achievement Authority , which was established in 2011 and oversees 15 low-performing schools in Detroit. DPS, which is facing a $170 million deficit, has been under the control of a state-appointed emergency manager since 2009. The current EM is Darnell Earley , who replaced Jack Martin in January.

STUTZ

make peopleâ&#x20AC;&#x2122;s lives better in big cities. That wonâ&#x20AC;&#x2122;t mean traditional car ownership as weâ&#x20AC;&#x2122;ve talked about in the past. â&#x20AC;Ś Itâ&#x20AC;&#x2122;s how do we provide freedom of mobility. My point is that selling fewer vehicles will happen with or without us, so Iâ&#x20AC;&#x2122;d like to do it from a leadership position.â&#x20AC;? To that end, Ford has launched 25 mobility experiments around the world to test various transportation ideas. Crainâ&#x20AC;&#x2122;s reported in March that the company had unveiled two prototype electric bikes with sensors and software designed by Royal Oak-based Tome Inc. Ford said roughly 10 percent of the company is working on alternatives, with the other 90 percent focusing on the work that has to be done today, but â&#x20AC;&#x153;there has to be an element in the company about how we get to this future. â&#x20AC;Ś We need to make sure Ford is a respected brand in transportation in 20 years.â&#x20AC;? Ford said he believes that changes in technology and how people view transportation are spurring a period of innovation and growth that could produce a boom for Michigan akin to what happened in the early days of the auto industry â&#x20AC;&#x201D; if the industry embraces it. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s big inflows of capital if we do this right. I think this is super exciting,â&#x20AC;? he said.

dal, who has formed an exploratory committee, it may be too late to enter and have an impact. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s a real fight for space,â&#x20AC;? Silver said. äĄ˛ A reason not to bet on a winner now is that by November 2016 the odds are likely to be â&#x20AC;&#x153;quite close or uncertain. â&#x20AC;Ś Youâ&#x20AC;&#x2122;re looking at a very competitive election unless thereâ&#x20AC;&#x2122;s more news.â&#x20AC;?

COOLIDGE

From Previous Page

14 MILE

Increase your cash ďŹ&#x201A;ow and pursue bigger opportunities with our customized, ďŹ&#x201A;exible lending solutions. s ! 2 &INANCING s ,INES OF #REDIT

1700 Stutz Drive | Troy, MI 48084 | 248.649.4772 M - F | 9AM - 5PM | Open to the public michigandesign.com

(248) 658-1100 www.hitachibusinessďŹ nance.com

20150601-NEWS--0014-NAT-CCI-CD_--

5/29/2015

11:42 AM

Page 1

CRAIN’S DETROIT BUSINESS // June 1, 2015

PEOPLE

SPOTLIGHT

ON THE MOVE Send news items and photos to cdbdepartments@crain.com

dent and relationship manager of the education, nonprofit and health care team, Fifth Third Bank, Southfield.

Walker

Miller

Ben Pugliesi to senior vice president, KeyBank Business Capital, Southfield, from senior vice president, PNC Business Credit, Troy.

CONSTRUCTION Jacqui Walker to marketing manager, DeMaria Building Co. Inc., Novi, from marketing coordinator. Teresa Miller to vice president, central region, Barton Malow Co., Southfield, from project director.

EDUCATION Glenn McIntosh to vice president of student affairs, Oakland University, Rochester Hills, from interim vice president of student affairs and enrollment manageMcIntosh ment. Jonathan Stepherson to director of technology, Hillel Day School of Metropolitan Detroit, Farmington Hills, from director of desktop technology services, Wayne State University, Detroit.

MANUFACTURING Michael Summers to vice president of operation excellence, Cooper-Standard Holdings Inc., Farmington Hills, from vice president of North American operations. Also, Ronald Frisbie to vice president of North American operations, Cooper-Standard Holdings Inc., Novi, from CareFusion Corp., San Diego.

Achatz

MARKETING Gary Holme to senior vice president, creative director, McCann Detroit, Birmingham, from freelancer, Los Angeles.

ENGINEERING Jennifer Chehab to senior project engineer, Hubbell, Roth & Clark Inc., Bloomfield Hills, from senior project engineer, Anderson, Eckstein and Westrick Inc.,

Chehab Shelby Township.

Anthony Achatz to director, OEM and international sales, BrassCraft Manufacturing Co., Novi, from national sales manager, OEM/special markets.

Ennest

Michael Blackburn to senior vice president and relationship manager, commercial banking, Citizens Bank N.A., Southfield, from director of corporate banking and group manager, Flagstar Bank, Troy. Also, Todd Seehase to senior vice president and portfolio manager, commercial banking, from vice president and portfolio manager, FirstMerit Bank, Southfield; and Kimberly Zazula to vice president and relationship manager, commercial banking, from vice presi-

Christine Mason Soneral has been promoted to senior vice president and general counsel for ITC Holdings Corp. in Novi. She had served as vice president and general counsel for ITC Holdings. Soneral, 42, is responsible for ITC’s legal Soneral department, which includes the legal, corporate secretary, real estate, contract administration and corporate compliance functions. She joined ITC in 2007. She previously served as a partner in Dykema law practice in Lansing, with a primary focus on energy issues in representing clients before state and federal trial courts, appellate courts and regulatory agencies. She has a bachelor’s degree in pre-law/political science from Michigan State University and a Juris Doctor from Indiana University. She serves on the Judicial Qualification Committee of the State Bar of Michigan, the Council of Administrative and Regulatory Law Section of the State Bar of Michigan and the board of the College of Social Sciences Alumni Association at Michigan State University. She recently was appointed to MSU’s department of political science external advisory board.

NONPROFITS Cheryl Melville to director of human resources, Arbor Hospice, Ann Arbor, from human resources manager, Center for Family Health, Jackson.

SERVICES

Nicol

Alana Nicol to president, Gerry Weinberg and Associates, Southfield, from director of marketing and business development.

Myke Hawkins to senior vice president of global solutions, Kelly Services Inc., Troy, from managing director Hawkins and senior vice president of global sales and client management, Buck Consultants LLC, New York City.

CALENDAR THURSDAY JUNE 3

Holme

FINANCE Tricia Ennest to business development officer, Level One Bank, Sterling Heights, from development specialist, Advia Credit Union, New Baltimore.

Christine Mason Soneral: senior vice president and general counsel, ITC Holdings Corp.

Franso

Oneil Franso to director of human resources, Impact Management Services LLC, Southfield, from director of human resources, Common Ground,

Bloomfield Hills. Larry Vaughan to interim CEO, National Systems Installers Inc., Commerce Township, from senior vice president of worldwide sales and Vaughan field operations, Meru Networks Inc., Sunnyvale, Calif. People on the Move announcements are limited to management positions. Email cdbdepartments@crain.com. Include person’s name, new title, company, city in which the person will work, former title, former company (if not promoted from within) and former city in which the person worked. Photos are welcome, but we cannot guarantee they will be used.

Inclusive Nonprofit Workplaces. 8:30 a.m.-4 p.m. Michigan Nonprofit Association. Presentations by local nonprofit experts, panel discussions on developing inclusion strategies with Stephen Henderson of the Detroit Free Press, and a keynote presentation by inspirational speaker Steve Robbins. McGregor Memorial Conference Center,Wayne State University, Detroit. $75 members, $115 nonmembers. Register: www.cvent.com/d/7rq1lc.

THURSDAY JUNE 4

Michigan Infrastructure Conference. 7:30 a.m.-5:30 p.m. American Council of Engineering Companies of Michigan, Michigan section of the American Society of Civil Engineers, Urban Land Institute. Speakers include Kirk Steudle, director, Michigan Department of Transportation; Mark Hackel, Macomb County executive; and Tom Murphy, senior resident fellow, Urban Land Institute. $175 members; $250 nonmembers; $85 government agency. Inn at St. John’s, Plymouth. Phone: (517) 332-2066; website: michigan.uli.org/event/ infrastructure-2015.

Crain’s 2015 General & In-House Counsel Summit Crain’s fifth annual General & In-House Counsel Summit will feature keynote speaker John Dean, former counsel to President Richard Nixon. Dean’s most recent book, The Nixon Defense:What He Knew and When He Knew It, is a cautionary tale of mistakes that could have been avoided, much like the legal issues organizations grapple with daily. Also included in the summit are educational sessions on managing the ups and downs of the business cycle, what your CFO wants you to know, e-discovery and cybersecurity. The event is 2-7:30 p.m. June 10 at the Westin Book Cadillac, 114 Washington Blvd., Detroit. Tickets are $150 in advance or $140 each for groups of 10 or more. Preregistration closes at 9 a.m. June 8. If available, walk-in registration will be $170 per person. For information, contact Kacey Anderson at (313) 446-0300, email cdbevents@crain.com or visit crainsdetroit.com/events.

UPCOMING EVENTS 5th Annual Compensation and Benefits Conference. 8 a.m.-noon. June 9. American Society of Employers. The conference provides a look into pay and benefit trends,best practices in compensation and benefits, and identifying ways to make an impact on the bottom line. $89 ASE members; $119 nonmembers. VisTaTech Center, Schoolcraft College,Livonia. Contact: Kevin Marrs, (248) 223-8025; email: kmarrs@aseonline.org. Michigan Marketing Minds — International Marketing Momentum. 5-7 p.m. June 9. Ann Arbor Spark. Panelists share the best practices for marketing across borders. Moderator: Paul Koch, creative strategist, Q LTD; panelists: Jimmy Hsiao, CEO, Logic Solutions; Francis Glorie, entrepreneur in residence, TechTown; Julie Oldham, Small Business Development Council. Ann Arbor Spark, Ann Arbor. Free. Email: alissa@annarborusa.org; website: annarborusa.org. The Talmer Bank Story: Concept. Acquisitions. Marketing. 8-10:30 a.m. June 10. Marketing and Sales Executives of Detroit. Talmer Bankcorp Inc. Chairman Gary Torgow will share how purchasing troubled banks in the middle of the recession enabled the organization to grow nearly 8,000 percent. Management Education Center, Troy. $35 MSED members, $50 nonmembers. Website: msedetroit.org. Small Business Unlocked Morning Mingle 7:30 a.m. June 11. Detroit Regional Chamber. Interact with potential business clients and

strengthen relationships with other chamber professionals. Flagstar Bank, 2050 W. Big Beaver Road, Troy. Cost: Free for chamber members, $595 for future members. Contact: Marianne Alabastro, (313) 596-0479. #Hack4Detroit. 7 p.m. June 12 to 7 p.m. June 13. Automation Alley. Computer programmers and coders compete in a 24-hour #hack4detroit event to solve a technology problem in the city by building an app for a worthy cause. Apps will be judged by Beth Niblock, CIO, City of Detroit; Sean Hurwitz, CEO, Pixo; Brian Balasia, CEO, Digerati; and others. Automation Alley, Detroit. $20. Participation limited to 65 people. Registration closes June 5. Contact: (800) 427-5100, email: info@automationalley.com. Young Leader Conference. Noon-5 p.m. June 16. Detroit Economic Club. Professional development designed by young leaders for young leaders. Cobo Center, Detroit. $90. Contact: Paige Narins, (313) 963-8547, ext. 115; email: pnarins@econclub.org

Calendar guidelines. Visit crainsdetroit.com and click “Events” near the top of the home page. Then, click “Submit Your Events” from the drop-down menu that will appear. Fill out the submission form, then click “Submit event” at the bottom of the page. More Calendar items can be found at crainsdetroit.com/events.

20150601-NEWS--0015-NAT-CCI-CD_--

5/29/2015

4:47 PM

Page 1

CRAINâ&#x20AC;&#x2122;S DETROIT BUSINESS // June 1, 2015

CONTRACTS ArborMetrix Inc., Ann Arbor, a provider of health care analytics, announced that the Michigan Health & Hospital Association Keystone Center, Okemos, will use ArborMetrixâ&#x20AC;&#x2122;s Readmetrix solution statewide. Readmetrix is a web-based analytics tool that will use data from the MHAâ&#x20AC;&#x2122;s Michigan Inpatient Database to analyze readmission rates in different hospitals in the state. Websites: arbormetrix.com, mhakeystonecenter.org. Chromogenex US Inc., Howell, the sister company of Chromogenex Technologies Ltd. Carmarthenshire, United Kingdom, developer, provider and manufacturer of aesthetic laser technology for use in medical, cosmetic and beauty procedures , appointed LiLa Enterprise LLC, Suwanee, Ga., the exclusive distributor for the i-lipo and i-lipo ultra body sculpting systems, which use low-level laser technology for smoothing cellulite, fat reduction and body shaping treatments. The distribution agreement gives LiLa the rights to distribute both productions through its subdistributor network. Website: chromogenex.com.

DEALS

4160 Cass Ave., Suite A, Detroit. Telephone: (313) 818-0084. Treat Dreams in on Facebook.

& DETAILS Submit news to cdbdepartments@crain.com

Logi-Serve LLC, Farmington Hills, employee assessment specialists, announced that Brookdale Senior Living Inc., Brentwood, Tenn., will use LogiServeâ&#x20AC;&#x2122;s online assessment tool to help select job candidates and develop employees in sales positions. Websites: logi-serve.com, brookdale.com. Fathead LLC, Detroit, and The Upper Deck Co., Carlsbad, Calif., and its affiliates have reached an agreement to offer a new collection of Fathead vinyl wall graphics featuring sports greats Michael Jordan, Wayne Gretzky and Tiger Woods. Website: fathead.com. Pinkerton Consulting & Investigations Inc., Ann Arbor, a global risk management agency, opened four new offices

COMMERCIAL PROPERTIES

in Germany: in Berlin, Hanover, Dusseldorf and Frankfurt. Website: pinkerton.com.

NEW SERVICES ProQuest LLC, Ann Arbor, is creating the first digital archive of Harperâ&#x20AC;&#x2122;s Bazaar, spanning 1867 through the current issue. Accessible later this year, the archive will be crosssearchable with the Vogue and Womenâ&#x20AC;&#x2122;s Wear Daily archives and a variety of sources. Website: proquest.com.

8215. Website: mindmingle.com. Rotter & Stone PC, a law firm specializing in matrimonial law, established by Harriet Rotter and Nancy Stone, has opened at 32710 Franklin Road, Franklin. Telephone: (248) 855-5200. Healthy Wealthy Wise LLC, a financial services firmestablished by Ramona Pearson, has opened at 26789 Woodward Ave., Suite 107, Huntington Woods. Telephone: (248) 3978501. Website: hwwllc.net.

STARTUPS Ziebart International Corp., Troy, announced the opening of its newest location in Dickinson, Texas. The franchise is licensed to Javier and Mari Pena. Website: ziebart.com.

EXPANSIONS Re/Max Eclipse, Madison Heights, real estate broker and owner Levan Wood, opened a Re/Max Eclipse office at 5744 Williams Lake Road, Waterford Township. Website: lwood.remax-detroit.com. Treat Dreams, Ferndale, has opened Treat Dreams Midtown,

Proforma Team Marketing Solutions has been established as a homebased business by Rhonda Moran, Clarkston. The company is part of the franchise network of Proforma, an Independence, Ohio-based provider of print and promotional products. Telephone: (248) 7224100. Website: proforma.com/tms. MindMingle LLC, which offers digital marketing, business intelligence and big data analytics consulting solutions, has opened at 340 E. Big Beaver Road, Suite 160, Troy. CEO is Mark Powers. Telephone: (313) 432-

REAL ESTATE WATERFRONT PROPERTY

AUCTIONS

Great Lakes GrowthWorks, a strategic consulting firm, founded by Phil Roos, opened its headquarters at 220 S. Main St., Ann Arbor. Telephone: (734) 221-3860. Website: glgrowthworks.com. Deals & Details guidelines. Email cdbdepartments@crain.com. Use any Deals & Details item as a model for your release, and look for the appropriate category. Without complete information, your item will not run. Photos are welcome, but we cannot guarantee they will be used.

INDUSTRIAL PROPERTY

SANDUSKY BEACH HOUSE Vacation Rental. 4 Bdrms/3 Full BA. Private Beach in Front. Sandusky Bay in Back w/private dock. 2.7 Miles from Cedar Point. Fully Equipped Kitchen. Washer/Dryer. Gas Grill. Wifi. Large House. GHDJAPTS@LIVE.COM for flyer. 937-542-1420

Dearborn Warehouse Space Available

LAKE CHARLEVOIX

Call 313-506-0534

94,000 SF ~12 Truck Wells

The Ultimate Boating Lake

AUCTIONS

3BR, 1BA, 1,270Âąsf Home

MARKET PLACE BUSINESS OPPORTUNITIES ADVERTISING & SALES OPPORTUNITY for Entrepreneurs in the Detroit Metro Area DIRECT MAIL AND DIGITAL. Be in control of your schedule and time. Help your clients grow. Work from home. Have graphics and mailing support from a national company. Have an exclusive territory. Purchase your own territory and be an entrepreneur with unlimited potential.

BUSINESSES FOR SALE MARINA & BOAT DEALERSHIP Northern, Michigan Thriving Turnkey Business 225â&#x20AC;&#x2122; Commercial Lake frontage 4.6 acres - Store/shop 3,000 sf 2 Pole barns w 13,000 sf Call for Details - 989-709-0761

t 100 Homes + Lots t Connected to Lake Michigan t Buyer Agent...NO Cost t $15 Million to $100,000 on other lakes

Immigration Law Firm, AV-rated Antone, Casagrande & Adwers, P.C. Dedicated to Business, Employment, and Family Immigration Matters 31555 W. 14 Mile Rd. Ste. 100, Farmington Hills, MI 48334 (248) 406-4100 www.antone.com

JOB FRONT POSITIONS AVAILABLE ACCOUNT MANAGER - AUTOMOTIVE SOUTHFIELD, MICHIGAN

WEDDING SERVICES

Waterfront Weddings Northern Michigan DestinationWeddingsUpNorth.com

906-643-8621

Altran Solutions Corp. seeks candidates for the position of Account Manager - Automotive responsible for client management activities and for the acquisition of new contracts within the automotive engineering market, with the aim of increasing the value delivered to our clients improving revenue and cross-selling. Interested candidates should apply online at: http://www.altran-na.com/careers/jobs.html click "our jobs" and search for the job title in Michigan under Job Openings.

Class A Offices

TWO PRIME LEASE OPPORTUNITIES

Built in 1940. 1-car attached garage. 1.19 acres

14.34 Acre Lot (Separate) 3580 West Harper Rd, Mason MI

ONLINE-ONLY AUCTIONS Wednesday, June 17th HOUSE: ONLINE BIDDING ENDS AT 2PM LOT: ONLINE BIDDING ENDS AT 1PM Open Houses: May 27th (4-6pm) & June 14th (1-3pm)

Joe Blachy (231) 409-9119

Email: joe@joeblachy.com Website: joeblachy.com Call anytime between 7am & 10pm 7 days a week! 420 Howard St., Petoskey, MI 49770

(517) 676-9800

A Mile of Lake Superior Frontage Minutes from Marquette

Call 248-659-8856 for additional information

LEGAL SERVICES - IMMIGRATION

OFFICE BUILDING

www.SheridanAuctionService.com

Bloomfield Hills Office Complex up to 8,000 Sq. Ft. FOR LEASE 6001 N. Adams Road

Tract 1: 3BR, 2BA, 3,148Âąsf House

3200 Sunset, Higgins Lake, MI 48627 3URSHUW\ 3UHYLHZ 6DWXUGD\ -XQH th DP SP

Tract 2: 2.52Âą Acres & Log Home +LGGHQ 5LGJH &RXUW *UD\OLQJ 0, 3URSHUW\ 3UHYLHZ 6DWXUGD\ -XQH th SP

Hunter Lodge ~ One of a Kind

Tract 3: 2.69Âą Wooded Acres +LGGHQ 5LGJH &RXUW *UD\OLQJ 0,

SEE THE VIDEO: www.upwaterfront.com/hunter DICK HUEY 800-733-4839

uplakes@gmail.com HUEY REAL ESTATE

Crainâ&#x20AC;&#x2122;s Classifieds Gets Results

Tracts 4, 5, and 6: 3.88Âą, 2Âą, and 40Âą Acres %HDYHU ,VODQG 3HDOLQH 7RZQVKLS

Auburn Hills ON University DRIVE 375 to 40,000 SF SUITES for lease 3250 University Drive Some individual entrances available

â&#x20AC;&#x153;Class Aâ&#x20AC;? Offices with â&#x20AC;&#x153;Class Aâ&#x20AC;? Locations Very Competitive Rates at $14.75 Per Ft Leasing Broker: Colliers 248-540-1000 or call Owner: 248-322-9118 for inspections and information

Tract 7: 19.68Âą Acres 5DSSD]LQL 5G 1HJDXQHH 0,

ONLINE AUCTIONS: July 7 $XFWLRQ FORVLQJ WLPHV SKRWRV DQG PRUH SURSHUW\ LQIR DW ZZZ 6KHULGDQ$XFWLRQ6HUYLFH FRP

(517) 676-9800

www.SheridanAuctionService.com

20150601-NEWS--0016-NAT-CCI-CD_--

5/29/2015

6:20 PM

Page 1

CRAIN’S DETROIT BUSINESS // June 1, 2015

TUNNEL, from Page 3: 2018 is the earliest that a new Canada-U.S. link can be completed tween Port Huron and Sarnia (which opened in 1994). An initial estimate, prior to the study, was that it would cost $7 million to enlarge the tunnel. It was to be part of a $41 million plan by Canadian National and CP Rail to improve the entire rail line. The tunnel had been built by sinking 80-foot-long steel tube sections into a 13-foot-deep trench in the riverbed. They were then covered with concrete. The interior of the tubes were lined with concrete. After the 1985 study was done, it was determined only the northern of the two tubes could safely be expanded. Expansion The enlargement, which began in August 1992, was done by scraping out some of the concrete roof and sides of the tunnel. The electrical and drainage systems were updated, and a new floor and new track were installed. The work ended up costing $27 million by the time the tunnel reopened in 1994. It allowed trilevel auto carriers, some “highcube” boxcars, and trailers on flatcars to pass through the tube. John Taylor, chairman of the supply chain management department at Wayne State University ’s School of Business Administration, said the expansion allowed most train cars to pass through the tunnel. “That was a temporary fix, but it was a critical fix because it allowed us to eliminate railroad car ferries. It

took care of most traffic,” he said. “That saved the auto companies a good share of money. They were paying a fortune.” John Taylor: While the Tunnel expansion costly bottleneck temporary, but vital of ferrying cars was eliminated, the expanded tunnel still was unable to accommodate the largest stacked rail cars, especially the 9foot by 6-inch “high-cube” shipping containers that are stacked. Currently, only the $200 million freight and passenger train tunnel built in 1994 underneath the St. Clair River between Port Huron and Sarnia, Ontario, by Canadian National can handle the largest rail freight trains. CN maintains that tunnel almost exclusively for its own trains. A desire for a tunnel in Detroit that can handle every size rail car gave birth in 2001 to what has come to be called the Continental Gateway Project. Participants in the tunnel project are Toronto-based Borealis Infra structure Management Inc., Canadian Pacific and the Windsor Port Au thority. They’re funding $200 million of the project’s $400 estimated capital cost. Canadian National had been part of the project but sold its share to Borealis in February 2000. Borealis, investment arm of the Ontario Municipal Employees Retire ment System , is financing most of

the tunnel work and owns the land necessary for the project near the old tunnel. Borealis increased its stake in the tunnel and the project from 50 percent to 83.5 percent in an $87.7 million deal in 2009. The state of Michigan last year committed $10 million to the tunnel project contingent on it getting all of its other funding and approvals. Marge Byington Potter, the project’s executive director of corporate affairs, said the effort is in talks with the U.S. Federal Railroad Ad ministration about a $190 million Railroad Rehabilitation & Improvement FiMarge Byington nancing loan to Potter: Still round out the working on fed loan capital costs. But for that to happen, Canadian federal environmental approval and all other permits must be in hand. That process is ongoing, Byington Potter said. That Canadian environmental approval could happen by the end of summer, she added. “We’re still working on it,” she said. “Everything has to be in order” to get the federal rail loan. At this point, the project isn’t seeking any other Canadian and U.S. grants to offset the borrowing, she said. What’s next The funding isn’t the final hurdle: Once all the capital is in place, the project must get approval to pro-

ceed under the Canadian International Bridges and Tunnels Act and it must get a U.S. Presidential Permit from the State Department. Once all the approvals and funding are in place, construction is estimated to take two years, Byington Potter said. That means if all approvals and funding happened by the end of 2015, the earliest the tunnel would open is some time in 2018. Byington Potter expects to have a new project timeline at the start of 2016. “Slowly but surely, it all moves very slowly,” she said. The new tunnel will be about 50 feet below the riverbed, which is 30 feet deeper than the current tunnel. It also will be several hundred feet longer, and will be dug by specialized boring machinery rather than constructed as tubes sunk into the river. Design and engineering work on the new tunnel has been done by Omaha, Neb.-based HDR Inc.; Toronto-based MMM Group ; and Iselin, N.J.-based Hatch Mott Macdonald Group Inc. The new tunnel will be open to all rail companies, Byington Potter said. The original tunnel plan called for the current tubes to be converted into a commercial truck link, but that was scrapped after Canada and Michigan opted to build a new bridge about a mile from the Ambassador Bridge — a span scheduled to open by 2020 and be called the Gordie Howe International Bridge. Before taking on its current

name, the tunnel effort was called the Detroit River Tunnel Partnership and the tube itself was nicknamed the “Jobs Tunnel” because of the thousands of jobs backers predict it will create or preserve. Tunnel backers also note that the new tube would be near the proposed $445 million Detroit Inter modal Freight Terminal being jointly built by CSX , Norfolk Southern , Canadian Pacific and Canadian National as a consolidated terminal near Wyoming Avenue and I-94 that is designed to accommodate existing and future freight demands. Wayne State’s Taylor is skeptical about the tunnel project. “It’s very difficult financially because there’s so little traffic that doesn’t fit now,” he said. “It’s just hard to justify the financing. Until we get to the point most of the container traffic does not fit, it’s just hard to justify a new railroad tunnel. I think it’s up in the air. The business case is very difficult.” The 1910 tunnel handles about 400,000 rail cars annually between Detroit and Canada. The volume with the new tunnel is expected to be about the same but will be done more efficiently with the use of doublestacked rail cars, Byington Potter said. The new tube will recoup its costs via tolls that rail companies negotiate, she said. Such tolls typically based on each kind of rail car, such as tankers and box cars. She didn’t have toll estimates. 䡲 Bill Shea: (313) 446-1626 Twitter: @Bill_Shea19

HOSPITALS, from Page 1: HMOs find state budget for health care hard to swallow Services’ 2015-16 proposed budget. Laura Appel, vice president of federal policy and advocacy with the Michigan Health & Hospital As sociation , expressed only qualified appreciation for more than $450 million in increased Medicaid funding to hospitals next year. “There is no doubt this is a positive impact for Michigan hospitals, but most people forget that we have given $7 billion (in lower Medicare reimbursement the past five years) to pay for the coverage expansion,” said Appel. Medicaid HMOs Rick Murdock, director for the health plan association, said Medicaid HMOs expected some reductions. Those are a given due to the effort by legislators to redirect Rick Murdock: general funds toLawmakers made ward road repair wrong assumptions. and the compromise health plans reached with the state to continue managing pharmacy benefits. Murdock said legislators made several erroneous assumptions when trimming the health plan budgets. For example, the budget calls for a

Budget changes The proposed Michigan Department of Health and Human Services budget also includes the following changes:

䡲 Healthy Kids dental services receives a $37 million increase to expand the program to the last three remaining counties in the state — Kent, Oakland and Wayne — to children up to age 12. 䡲 Autism education funding remains at $2.5 million for the five state universities, but the funding allocation will be based on grant applications instead of $500,000 for each college. 䡲 Contracting rules. Community Health is prohibited from contracting with any organization that provides elective abortions, abortion counseling or abortion referrals, for services that are funded with restricted or general fund purchases. An organization under contract with the department also is banned from subcontracting with similar organizations.

䡲 Quality reporting. Hospitals that receive state Graduate Medical Education payments must report quality scores to the Leapfrog Group, an employer-sponsored national quality organization. Hospitals that fail to submit data will have their fourth-quarter GME payments withheld. 䡲 GME funding tracking. Hospitals that receive GME payments must submit information on costs of their residency programs and report how many residents stay in Michigan after completing their training program. Hospitals that fail to submit data will have their fourth-quarter GME payments withheld. — Jay Greene

$9.4 million general fund reduction in laboratory fees paid by HMOs. “They lowered our payments because they think we are paid at Medicare rates,” Murdock said. “We are paid below Medicaid rates already. There is no policy change. We are just cut.” Medicaid health plans did receive a 1.8 percent bump, or $55 million,

in payments to ensure actuarial soundness for the Healthy Michigan Medicaid program. The payments are required by federal law. This week, both chambers are expected to give final approval to other spending bills that will be folded into the state’s revised budget. Work on the budget is expected to be completed by the end of June for the

fiscal year beginning in October. Due primarily to an infusion of $1.58 billion in federal funds for Medicaid expansion overall, Health and Human Services funding increased by 8.4 percent to $19.6 billion. State general funds were cut by about $71 million. Sen. Jim Marleau, R-Lake Orion, co-chairman of the conference committee, said the health budget ensures continued access to care for residents in a tight year. “This isn’t inJim Marleau: tended to be a “Most vital” permanent programs protected funding structure, but we successfully protected the most vital programs in a year where we cut $70 million general funds from the (health) budget,” said Marleau, who also is chairman of the Senate appropriations subcommittee on health and human services. Fiscal challenges Marleau said legislators increased Medicaid payments to hospitals to compensate them for the unexpected increase in enrollment. “These are one-time payments that are owned for services from the Healthy

Michigan program,” he said. Dominick Pallone, the HMO association’s deputy director, said continuing to underfund health plans will eventually cause financial problems for some health plans. “The last few years, (the state) has put more administrative costs on the plans,” Pallone said. “Over time, industry profit margins have declined to about 1 percent.” Medicaid HMOs in Michigan are financially solvent, Pallone said, but cutting rates could cause future problems. In April, Blue Cross Blue Shield of Michigan filed papers with the state to spin off Blue Cross Complete into a for-profit limited liability company in a joint venture with Indepen dence Health Group, a Philadelphiabased Blues plan. Over the past two years, Blue Cross Complete has lost more than $22 million as it tripled in size to 75,000 members and built infrastructure to expand into other counties next year. Murdock said many Medicaid HMOs will be financially and administratively challenged over the next year as they convert to a new payment code system. Many plans face the unknown this year as they bid for new state Medicaid contracts. 䡲 Jay Greene: (313) 446-0325 Twitter: @jaybgreene

20150601-NEWS--0017-NAT-CCI-CD_--

5/29/2015

6:23 PM

Page 1

CRAIN’S DETROIT BUSINESS // June 1, 2015

MEDC, from Page 1: Biz goes to bat for economic development funding Rick Snyder, are publicly warning of the consequences that would result from raiding the state’s business arm to pay for roads. Chief among them: Doing so would send a clear message that Michigan is not welcoming to business. They point to the state’s jobless rate dropping to 5.4 percent in April, the first time in 15 years it has matched the national rate, as proof that their efforts are working. And the cuts, amounting to $185 million of the MEDC’s proposed $403 million budget next year, could force the agency to pit its own programs against one another for limited dollars. Competing priorities For instance, should the state focus on luring tourists, or traditional corporate attraction and retention? Since 2006, Pure Michigan has contributed to 22.4 million trips from out-of-state visitors, $6.6 billion in revenue for Michigan businesses and $459 million in tax revenue, MEDC data shows. Meanwhile, courting and retaining corporate residents can create permanent jobs. Besides Pure Michigan and its tax incentive programs, the MEDC helps companies locate sites for new facilities and access capital, awards grants to cities and towns to improve their downtowns, and supports entrepreneurs. “I don’t think that would be the place resources should be taken for transportation,” Snyder told reporters last week at the Detroit Re gional Chamber ’s Mackinac Policy Conference. Economic development funding will be at risk every year the longer the state goes without a stable funding source for roads, Arwood told

Dems to push road ideas ‘at the right time’ MACKINAC ISLAND — Expect numerous versions of a road funding deal to swirl in the Capitol in coming months. Don’t, however, expect Democrats to push their own proposal. With Republicans holding a 27-11 majority in the Senate, “if we lead off with a plan, too often it becomes dead on arrival,” Senate Minority Leader Jim Ananich, D-Flint, said at the Detroit Regional Chamber’s Mack inac Policy Conference. “The proper way to do it,” Ananich said, “is, as we go forward, to propose ideas at the right time.” Democratic House and Senate leaders instead are likely to rally the caucus to negotiate with the GOP around their central points, including having businesses and the wealthy pay a larger share to fix Michigan’s crumbling roads and protecting an income tax credit for the working poor. For now, a new House roads panel is debating a Republican-led bill package that would raise more than $1 billion by 2019 for road and bridge projects. Among its facets: Drawing on anticipated future new revenue,

Crain’s last week. The Legislature already dedicated about $260 million in extra general fund tax revenues to put toward roads next year that otherwise could have gone to state departments. In other words, roads needs would trump other spending in areas like health, higher education and economic development. Lawmakers, however, defend their support of Pure Michigan and say defunding it is not their goal. Rather, they say, economic development depends on high-quality roads, and there is extra room in the MEDC budget without decimating the state’s tourism effort. New roads plan At issue is a 12-bill package from Republican House leaders that would raise more than $1 billion by

INDEX TO COMPANIES These companies have significant mention in this week’s Crain’s Detroit Business: 1701 Bespoke ...................................................... M30 A123................................................................................ 1 Assemble Sound ................................................ M27 Baker College ...................................................... M43 Bamboo Detroit .................................................. M21 Beaumont Hospital ................................................ 4 Bernard Financial Group .................................... M13 CenterHealthcare Research & Transformation ..9 Central Michigan University ............................ M43 Cleary University ................................................ M43 Concordia University ........................................ M43 Continental Rail Gateway ...................................... 3 Davenport University ........................................ M43 Desai Family Accelerator ................................ M35 Detroit Institute of Arts .................................. M28 Detroit Kitchen Connect .................................. M15 Detroit Marine Terminal .......................................... 3 Detroit Urban Investment Fund .................... M13 Diversified Industrial Staffing .......................... M4 DTE Energy .......................................................... M30 Eastern Market .................................................... M15 Eastern Michigan University .................. M6,M37 Ellis Infinity............................................................ M22 Engineering Society of Detroit ............................ 11 Engraving Connection ........................................ M11 Fed.Reserve BankofChicago,Detroit Branch M31 FoodLab Detroit .................................................. M14 Forgotten Harvest .............................................. M14 Fresh Corner Cafe .............................................. M26 Garden Fresh Gourmet ...................................... M14 General Dynamics Land Systems .................. M22 General Motors ...................................................... M3 Green Living Science ........................................ M26 Hantz Farms ........................................................ M25 Health Alliance Plan.................................................. 9 HealthRise Solutions ........................................ M22 Henry Ford College .................................. M35,M38 Honigman Miller Schwartz and Cohn ...... 8,M10 Hopeful Harvest .................................................. M14 IAV Automotive Engineering ............................ M3 Ignition Media Group .......................................... M21 Jackson College .................................................. M36

Kettering University .......................................... M43 Lawrence Technological University ...... M4,M43 Lear .......................................................................... M3 M. Shapiro Real Estate Group .............................. 4 Macomb Community College ...... M4,M9,M36 Madonna University .......................................... M43 Marygrove College ............................................ M43 Michauto.................................................................... 12 Michigan Association of Health Plans ................ 1 Mich. Comm. College Assoc. M6,M8,M35,M38 Mich.Dept.ofTalent & Economic Development M4 Michigan Department of Community Health .. 1 Michigan Department of Transportation .... M31 Michigan Economic Development ........................ 1 Michigan Health & Hospital Association ........ 16 Michigan Science Center ...................................... 10 Michigan Sports Hall of Fame ............................ 18 Michigan State University .............................. M44 Michigan STEM Partnership .............................. M4 Modi Financial .................................................... M27 Monroe County Community College ............ M36 Mott Community College ................................ M36 New Economy Initiative .......................................... 8 Northland Center .................................................... 18 Oakland Community College .............. M28,M36 Oakland University .......................... M9,M11,M44 Osram Opto Semiconductors .......................... M3 Peas & Carrots Hospitality ............................ M30 Plymouth-Canton Community Schools ........ M9 Rassini International ............................................ M3 Rochester College .............................................. M44 Rocket Fiber ........................................................ M25 Schoolcraft College .................................. M8,M35 University of Detroit Mercy .............................. M37 University of Michigan ...................................... M44 University of Michigan-Dearborn .................. M44 University of Michigan-Flint ............................ M45 Walsh College .............................................. M8,M37 Washtenaw Community College .................. M36 Wayne CountyCommunityCollege District M36 Wayne State University ...................... 16,M9,M37 Workforce Intelligence Network of SE Mich. M3

diverting $185 million from state economic development programs, cutting the Earned Income Tax Credit, raising the 15-cent diesel tax, and charging fees to drivers of electric and hybrid vehicles. Democrats believe the plan’s reliance on revenue that isn’t guaranteed is not a permanent solution. It also doesn’t incorporate any new dollars from boosting sales or regular fuel taxes, which had been a component of the rejected Proposal 1 ballot issue last month. “If anything’s going to get done, it will require at least Republican acquiescence, if not full-out support,” said House Democratic Leader Tim Greimel, DAuburn Hills. A compromise could be possible. House Speaker Kevin Cotter told Crain’s he’d consider raising Michigan’s flat 19-cent gasoline tax, which hasn’t gone up since 1997. “I want to give the plan that we have right now” a chance, said Cotter, R-Mount Pleasant. But, he added, “I’m not saying alternative revenue can’t be part of the plan.”

2019 for infrastructure projects. The plan would do that by drawing on anticipated future new revenues, cutting an income tax credit for the working poor, raising the 15-cent diesel tax to match the 19-cent gasoline tax, and charging fees to drivers of electric and hybrid vehicles. But it also would divert $185 million from state economic development programs, including tobacco settlement dollars that fund business attraction and Pure Michigan, film incentives and tribal gaming compacts that now pay for programs such as Pure Michigan Busi ness Connect, which matches companies with in-state vendors. “This plan is a start,” House Speaker Kevin Cotter, R-Mt. Pleasant, told Crain’s. “Roads are a priority, so we’re going to fund them first.” Snyder told Crain’s the House proposal is just one plan of what could be several and a final deal has yet to be negotiated. He stopped short of saying whether he thinks the Legislature would OK diverting economic development funding to roads. Still, companies “want certainty and consistency in the environment you’re operating in,” Snyder said during his keynote address at the conference. “Every time you look like you’re bouncing around, or not have a clear direction that you stay true to, you’re creating a disincentive for investment.” It’s a sentiment shared by some local government leaders. On Mackinac Island, Westland Mayor William Wild said he’s concerned that disinvesting in the MEDC while Michigan’s economy is growing will set the state and its cities farther behind. But Joseph Lehman, president of the Midland-based conservative

— Lindsay VanHulle

think tank Mackinac Center for Pub lic Policy, told an audience at a session on roads that lawmakers could find rational cuts within MEDC. He characterized some of its efforts, particularly tax credits, as “cloaked in secrecy.” “It’s a program that consumes hundreds of millions of dollars,” Lehman said. “It isn’t fair to go to the taxpayers to ask for more when we’ve still got some really questionable spending that just goes on year after year.” That mindset is partly the fault of the MEDC for not communicating enough about its programs and successes, Arwood told Crain’s. He said he knows some people philosophically oppose incentives and he alone can’t change a perception problem. But, he added, the state can do a better job of articulating the importance of economic development in Michigan — a Steve Arwood: conversation that “I’d rather play should happen offense right now.” separately from road funding. “I’d rather play offense right now,” Arwood said of talking about Michigan’s and Detroit’s comeback stories. “This is an excellent time to just be out there talking about how great we are, and we need to do that. We absolutely need to do that,” he said. “Every other state in the country we compete with is watching what’s going on. I’m sure they’re using it in their marketing material. I would.” 䡲 Lindsay VanHulle: (517) 657-2204 Twitter: @LindsayVanHulle

“Every time you look like you’re bouncing around, or not have a clear direction that you stay true to, you’re creating a disincentive for investment.” Gov.Rick Snyder

CRAIN’S DETROIT BUSINESS www.crainsdetroit.com Editor-in-Chief Keith E. Crain Group Publisher and Editor Mary Kramer, (313) 446-0399 or mkramer@crain.com Associate Publisher Marla Wise, (313) 446-6032 or mwise@crain.com Executive Editor Cindy Goodaker, (313) 446-0460 or cgoodaker@crain.com Managing Editor Jennette Smith, (313) 446-1622 or jhsmith@crain.com Director, Digital Strategy Nancy Hanus, (313) 4461621 or nhanus@crain.com Managing Editor/Custom and Special Projects Daniel Duggan, (313) 446-0414 or dduggan@crain.com Assistant Managing Editor Kristin Bull, (313) 446-1608 or kbull@crain.com Senior Editor/Design Bob Allen, (313) 446-0344 or ballen@crain.com Senior Editor Gary Piatek, (313) 446-0357 or gpiatek@crain.com Research and Data Editor Sonya Hill,(313) 446-0402 orshill@crain.com Web Producer Norman Witte III, (313) 446-6059 or nwitte@crain.com Editorial Support (313) 446-0419; YahNica Crawford, (313) 446-0329 Newsroom (313) 446-0329, FAX (313) 446-1687 , TIP LINE (313) 446-6766

REPORTERS Jay Greene, senior reporter Covers health care, insurance, energy, utilities and the environment. (313) 446-0325 or jgreene@crain.com Amy Haimerl, entrepreneurship editor Covers entrepreneurship and city of Detroit. (313) 4460416 or ahaimerl@crain.com Chad Halcom Covers litigation and the defense industry. (313) 446-6796 or chalcom@crain.com Tom Henderson Covers banking, finance, technology and biotechnology. (313) 446-0337 or thenderson@crain.com Kirk Pinho Covers real estate, higher education, Oakland and Macomb counties. (313) 446-0412 or kpinho@crain.com Bill Shea, enterprise editor Covers media, advertising and marketing, the business of sports, and transportation. (313) 446-1626 or bshea@crain.com Lindsay VanHulle, Lansing reporter. (517) 6572204 or lvanhulle@crain.com Dustin Walsh Covers the business of law, auto suppliers, manufacturing and steel. (313) 446-6042 or dwalsh@crain.com Sherri Welch, senior reporter Covers nonprofits, services, retail and hospitality. (313) 446-1694 or swelch@crain.com ADVERTISING Sales Inquiries (313) 446-6032; FAX (313) 393-0997 Sales Manager Tammy Rokowski Senior Account Executive Matthew J. Langan Advertising Sales Christine Galasso, Catherine Grace, Joe Miller, Sarah Stachowicz Classified Sales Manager Angela Schutte, (313) 446-6051 Classified Sales Lynn Calcaterra, (313) 446-6086 Audience Development Director Eric Cedo Events Manager Kacey Anderson Creative Services Director Pierrette Dagg Senior Art Director Sylvia Kolaski Marketing Coordinator Ariel Black Special Projects Coordinator Keenan Covington Sales Support Suzanne Janik, YahNica Crawford Editorial Assistant Nancy Powers Production Manager Wendy Kobylarz Production Supervisor Andrew Spanos

CUSTOMER SERVICE Main Number: Call (877) 824-9374 or customerservice@crainsdetroit.com Subscriptions $59 one year, $98 two years. Out of state, $79 one year, $138 for two years. Outside U.S.A., add $48 per year to out-of-state rate for surface mail. Call (313) 446-0450 or (877) 824-9374. Single Copies (877) 824-9374 Reprints (212) 210-0750; or Lauren Melesio at lmelesio@crain.com To find a date a story was published (313) 4460406 or e-mail infocenter@crain.com Crain’s Detroit Business is published by Crain Communications Inc. Chairman Keith E. Crain President Rance Crain Treasurer Mary Kay Crain Executive Vice President/Operations William A. Morrow Executive Vice President/Director of Strategic Operations Chris Crain Executive Vice President/Director of Corporate Operations KC Crain Vice President/Production & Manufacturing Dave Kamis Chief Financial Officer Thomas Stevens Chief Information Office Anthony DiPonio G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) Editorial & Business Offices 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 Cable address: TWX 248-221-5122 AUTNEW DET CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly, except for a special issue the third week of October, and no issue the fourth week of December by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in U.S.A. Entire contents copyright 2015 by Crain Communications Inc. All rights reserved. Reproduction or use of editorial content in any manner without permission is strictly prohibited.

20150601-NEWS--0018-NAT-CCI-CD_--

5/29/2015

5:21 PM

Page 1

CRAIN’S DETROIT BUSINESS // June 1, 2015

Sports Hall of Fame cuts ties with longtime director By Bill Shea bshea@crain.com

The board that governs the money-losing nonprofit Michigan Sports Hall of Fame last week cut ties with the organization’s longtime executive director. Jim Stark had been executive director of the hall since 2003 under a contract with his Farmingtonbased Paisley Enterprises Inc. Stark’s tenure included operating losses and an investigation by the Michigan AtJim Stark: Had torney General’s been executive office into the director since 2003. hall’s finances that halted a plan to sell its inductee plaques. For now, the hall will be led by its volunteer board of directors and advisory board, Scott Lesher, chairman of the hall’s board of directors, said in a statement. Details about how that will work were not disclosed. The statement from Lesher said the hall and Stark “have agreed to part ways,” but didn’t disclose contractual or financial details. A message seeking comment was left for Stark. Crain’s has been told that the board voted last week to end its relationship with Stark, and he was informed Friday.

A list of board members wasn’t immediately available. “The hall thanks Jim for his years of service and sacrifice,” Lesher said, adding that no other statement will be made about the matter. Also unavailable were details about how Stark’s relationship with the hall will be closed out. A portion of the organization’s debt had been money owed to him that was being paid down in recent years. Stark’s contract was open-ended, according to a source familiar with the situation who agreed to speak only on the condition of anonymity. The Hall of Fame, which dates to 1954 and includes professional, collegiate and amateur athletes from Michigan or who played in the state, has struggled financially for years. The annual financial statements that the hall, as a nonprofit, must file with the IRS show expenditures that outstrip the revenue generated by events such as the annual blacktie induction dinner, a golf outing and bowling fundraiser. The hall’s woes became especially public when the state began investigating it in 2009 after being tipped off that the nonprofit failed to renew its state license and had not filed its required federal financial disclosure paperwork. Because the hall has federal 501(c)(3) nonprofit status, it doesn’t pay taxes but must file financial accounting forms.

Then-Attorney General Mike Cox halted a sale of its inductee plaques, which had been planned as a moneymaking effort. He sent a letter to the hall in January 2010 that ordered financial reporting requirements and suggestions for the organization on how it could better operate. The hall operated under a conditional charitable license from the attorney general’s Charitable Trust Section until the state granted a free and clear license. The hall is in compliance, the state has said. Stark is listed as working 40 hours a week for the Michigan Sports Hall of Fame, with a $60,000 management fee as his salary, according to the organization’s 2013 IRS 990 form, the most recent available. The expense data also shows $30,766 in office expenses, which are not itemized on the form. The 990 form shows the hall had less than $8,000 in cash on hand and a fund balance of $450,459 at the end of 2013, and had been operating at a loss for at least two years. The form shows a $22,728 loss in 2013 and a $30,312 loss in 2012. Past 990 forms dating to at least 2007 also show losses, some years topping more than $130,000. The 2013 induction dinner generated $90,084, according to the 990 form, and total revenue for that year was $165,030. Under the “other liabilities” section of the 990 form is a listing for

$272,500 for “contract payments and expense reimbursements payable” without explanation. Michigan’s four major pro sports teams, plus the University of Michi gan , Michigan State University and the Mid-American Conference for a time provided $50,000 in annual support for the hall. That subsidy ended several years ago. More recent revenue streams included online auctions of packages (trips, games and meals with hall inductees) and sports collectibles. That began in 2011. This year’s golf fundraiser, scheduled for June 29 at Red Run Golf Club in Royal Oak, is expected to be rescheduled while the board works out its near-term plans. Lesher is principal partner of Waterford Township-based Corporate Optics Inc. Corporate Optics was paid $16,000 in 2013 for event planning, believed to be the induction dinner. The company provides program management, stage sets and audiovisual services, mostly for corporate and sports clients. For example, it did work on Super Bowl XL at Ford Field in 2006. The hall’s primary assets are its 270 2-by-2-foot, 47-pound inductee plaques that were displayed in Cobo Center from 1964 until that facility’s recent $299 million renovation. The 2013 990 form indicates the hall estimated the plaques to be

worth $884,441. The hall stopped making the plaques some years ago. Michigan Sports Hall of Fame inductees include just about every major Michigan sports legend, from Ty Cobb and Joe Louis to Barry Sanders and Kirk Gibson, along with amateur athletes. Online public voting for the 2016 Hall of Fame class runs through Wednesday on the organization’s website, mshof.org. Among the six 2015 inductees were MSU men’s basketball coach Tom Izzo, professional bowler Aleta Sill and former Detroit Red Wings star Sergei Federov. For years, the hall conducted a quixotic search for a permanent home for the plaques and any memorabilia made available to it. Stark ran the organization’s business functions from his Farmington home and the plaques are in storage. Its last major capital campaign, begun in early 2005 with a goal of $5 million to $7 million, fell apart almost immediately because the preferred location, the First National Building in downtown Detroit, was sold and the new owners weren’t interested. The Michigan Sports Hall of Fame in November said it hired Troy-based advertising agency AFA Krause “to create brand development programs and new revenue streams.” Financial details of the relationship were not disclosed. 䡲

A123, from Page 1:

[COSTAR GROUP INC.]

The parking lot at Northland Center in Southfield has been largely empty since the mall closed its doors April 17.

Potential buyers make bids for Northland By Chad Halcom chalcom@crain.com

The shuttered Northland Center mall in Southfield may find a buyer soon, since the court-appointed receiver recently started shopping the property and already has received some inquiries. Frank Simon, owner of Bloomfield Hillsbased Simon PLC Attorneys & Counselors , has been court-appointed receiver of the Northland Center property since last September, but said he just started entertaining offers for it a few weeks ago. More than one local prospective buyer has already come forward with an offer since the mall closed its doors April 17, he said. Simon would not be specific on names or amounts, and said the property has no cur-

rent list price. “Ultimately we would accept the highest bidder who can be prepared for a very quick closing and the offer needs to be reviewed and approved by the court,” he said. “But there’s no particular time period to complete that.” Simon last month obtained an order from Oakland County Circuit Judge Wendy Potts to discharge a lien for more than $106,000 from Mt. Clemens-based Holsbeke Con struction Inc . on the property, essentially making it a junior creditor that could stand to collect a share of sale proceeds. He plans to clear another, smaller lien within weeks, eliminating potential hurdles to making a sale. Chris Brochert, partner at Bloomfield Hills-based Lormax Stern Development Co.,

suggested one possible interested customer may be the city of Southfield. Northland itself is too obsolete to be reopened as a retail center, he said, and demolition costs to repurpose the property could well exceed $10 million — creating a deterrent for many would-be commercial developers. Lormax Stern itself has no interest in the site, he said. Northland Center closed after Potts authorized a plan to shutter the mall and evict its remaining tenants in February. Simon is also handling lingering rent disputes with mall tenants and other business matters, post-closure, while offers come in on the property. 䡲 Chad Halcom: (313) 446-6796 Twitter: @chadhalcom Staff writer Kirk Pinho contributed to this report

ler AG with 12-volt starter batteries and 48volt microhybrid batteries, which are used in various technologies. Forcier said the funds will be used to purchase more efficient battery cell assembly equipment, while new lines will be created in China. A123 employs 610 in Michigan, but it plans to hire an undisclosed amount tied to the investment, Forcier said. It employs 1,815 globally. The battery maker is expected to generate $300 million in revenue in 2015, with plans of reaching $600 million in 2018, Forcier said. The company is also expected to be profitable for the first time in its history in 2015. A profit is a far cry from A123’s earlier performance, which led to its bankruptcy filing. In April 2012, a Fisker Karma plug-in hybrid fitted with an A123 battery failed during an April 2012 test by Consumer Reports. Replacing the defective batteries was expected to cost A123 $66.8 million, including a $15 million inventory charge. The announcement devastated A123’s stock price, which fell more than 85 percent during the year. A123 filed for bankruptcy owing millions of dollars to hundreds of debtors, including the cities of Livonia, Novi and Romulus. At the time, A123 held $376 million in debt with about $459.8 million in assets. “It’s been a tremendous turnaround, Forcier said. “We’re keeping in line with where the market is going, and we’re already working on another (expansion) plan after this one is complete.” Dustin Walsh: (313) 446-6042 Twitter: @dustinpwalsh

20150601-NEWS--0019-NAT-CCI-CD_--

5/29/2015

5:35 PM

Page 1

CRAIN’S DETROIT BUSINESS // June 1, 2015

WEEK ON THE WEB/MAY 23-29 Charity poker rules to take effect — or maybe not he Michigan Court of Appeals on Friday reversed a lower court’s ruling that had declared new millionaire party or charity poker rules invalid. That’s based on the process to put the rules in place. But the new rules, challenged by the Michigan Charitable Gaming Association and others, may not yet take effect. The case could return to the Court of Claims, the appeals court noted, since the Michigan Charitable Gaming Asso ciation’s argument— that an improper regulatory impact statement was done — was not addressed by the lower court.

ON THE MOVE 䡲 Nancy Schlichting, CEO of Detroit-based Henry Ford Health System, has joined the technical advisory board of Ann Arborbased Arboretum Ventures LLC, one of the Schlichting state’s leading venture capital firms.

COMPANY NEWS 䡲 Sterling Heights-based automotive safety components supplier Key Safety Systems said it will ramp up production of airbag inflators beginning in December, Automotive News reported. The acceleration at KSS plants in Florida and China will increase capacity by more than 5 million units annually, the company said. merican Axle & Manufactur 䡲 Am ing is in talks with prospective manufacturing tenants to be located at its former manufacturing grounds near the company’s Detroit headquarters, Automotive News reported. The supplier, which tore down seven of nine plants on its Detroit campus in 2013 and sold the land to Industrial Reality Group, now is working with the firm to entice one or more other suppliers. 䡲 Charlotte, N.C.-based Blackfinn Ameripub is preparing to open a second Michigan location, this one at the open-air Mall at Partridge Creek in Clinton Township. Blackfinn, which also operates a restaurant in Royal Oak, plans a soft opening for its Partridge Creek location June 1 and a grand opening June 4. 䡲 The Southfield-based Farbman Group purchased the TD Auto Finance building in Farmington Hills for an undisclosed price. TD Auto Finance, which sold the structure, will lease and renovate

RUMBLINGS

Detroit Digits A numbers-focused look at the week’s headlines:

3 The number of stores Meijer Inc. seeks to own in the city of Detroit. The company opened its first store in Detroit two years ago as part of the Gateway Marketplace development at Eight Mile Road and Woodward Avenue. A second store is under construction at Grand River Avenue and McNichols Road.

[GOODWILL INDUSTRIES]

The Ben & Jerry’s location operated by Goodwill Industries of Greater Detroit in One Campus Martius stopped serving ice cream last week.

$22.8 million The amount Bloomfield Hills-based Googasian Firm PC hopes to collect following criminal charges in Pakistan against executives of a company allegedly involved in a scheme to profit from fake diplomas.

$1.3 million The list price for the former Detroit home of Motown Records founder Berry Gordy. The 10-bedroom Renaissance Revival home in the BostonEdison neighborhood was built in 1917 by a lumber magnate before Gordy bought it in 1967.

100 The number of investments Detroit-based private equity firm Huron Capital Partners LLC has made since its founding in 1999. Its acquisition of Schoolcraft-based Greater Kalamazoo Auto Auction last week marked the firm’s 100th investment.

$13 million The estimated cost of hosting the 2019 college football national championship. The Detroit Sports Commission and the Detroit Lions submitted the bid to host the title game at Ford Field in Detroit.

155,000 square feet in the 275,000square-foot Class A building, with the rest available for lease. 䡲 Detroit-based TernPro Inc., a technology and services company, closed on a seed funding round of $395,000 from Bizdom Ventures, Venture for America and angel investors in Detroit, Cincinnati and New York. The funding is to develop Slope, a cloud-based platform to store and organize media content.

OTHER NEWS 䡲 The 2016 Mackinac Policy Conference will be held May 31 through June 3. The 2015 event on Mackinac Island ended its four-day run May 29. 䡲 The driver of a tanker truck that exploded and caught fire, closing a section of I-75 in downtown Detroit last week, was cited for careless driving, AP reported. The tanker truck was carrying 9,000 gallons of unleaded fuel when it exploded, the Michigan State Police said. The driver was unhurt. 䡲 The second Quick Lane Bowl, which pits football opponents from the Big Ten and Atlantic Coast Conference at Ford Field, has been scheduled for 5 p.m. Dec. 28 and will air on ESPN2. That’s a change from Ford Field’s traditional Dec. 26 spot on the college bowl calendar, and a shift from ESPN. 䡲 The LeBron James-led Cleveland Cavaliers, which Detroit’s Dan Gilbert has owned since 2005, closed out a four-game sweep of the Atlanta Hawks to earn a place in the NBA Finals. The Cavaliers, seeking their first National Basketball Association championship, will play the Golden State Warriors starting June 4.

[DETROIT ZOO]

The Detroit Zoohas long worked to preserve the tinyPartula nodosa snail.

䡲 One hundred endangered snails are on their way to Tahiti to restore a species that became extinct in the wild, the Detroit Zoo said. The zoo has been working for decades to preserve the tiny Partula nodosa snail, which had been driven out of its native South Pacific habitat, AP reported. 䡲 Lawmakers are allocating most of $25 million in funding for Michigan’s movie incentives program to resolve debt the state owes for the failed Michigan Motion Picture Studios facility in Pontiac, AP reported. 䡲 Comerica Bank’s Michigan Economic Activity Index fell in March, losing 0.8 percentage points to a level of 117.8 after a 1.9-point drop in February.. 䡲 Michigan’s seasonally unadjusted unemployment rate dropped to 4.8 percent in April, down 0.9 points from the previous month and 2.1 points from a year earlier, the state’s Department of Technology, Management & Budget said. The metro Detroit jobless rate fell 0.9 points in April to 5.1 percent, AP reported.

OBITUARIES 䡲 Tarik Daoud, longtime CEO of the former Warren-based Al Long Ford, died May 24. He was 78. 䡲 Marshilia Snoddy, district sales manager at American Honda Motor Co., died May 20. She was 55.

A scoop: Ben & Jerry’s at Campus Martius closes

ad news for downtown Detroit ice cream lovers: The Ben & Jerry’s location operated by Goodwill Industries of Greater Detroit in One Campus Martius (formerly the Compuware Building) has closed. But the jobs and training the scoop shop provided for Detroit youths will continue at new locations, and with new types of businesses, Goodwill said. The Ben & Jerry’s Partnership, which operated for the past decade through a franchise agreement with Ben & Jerry’s U.S. Inc., closed last week after it dished out its final inventory of ice cream, said Jim Kornas, vice president of growth and marketing initiatives for Goodwill. The expiration of the franchise agreement with the national ice cream maker presented Goodwill with an opportune time to review its youth job training program, Kornas said. Although the shop had been operating in the black in recent years and sustaining itself, it limited Goodwill’s ability to expand the youth job training program; the franchise agreement did not allow Goodwill to sell Ben & Jerry’s ice cream at any other location, and it was a seasonal business. The 16-week Ben & Jerry’s program provided life planning, soft skills, job training and part-time summer employment for about 35 Detroit kids each year, adding up to 356 students over the past decade. “But there are so many more young people in the city of Detroit that could use this kind of help,” Kornas said. He declined to share specifics, but Kornas said Goodwill is talking with other employers, and it plans to open a year-round, light-retail type of operation in multiple locations so it can continue to provide job training and part-time jobs for Detroit youths.

Detroit’s 1st Applebee’s seeks local photos Applebee’s is opening its first Detroit location at Eight Mile Road and Woodward Avenue in November. But first, the restaurant’s franchise owner needs help decorating the walls with photo scenes from surrounding neighborhoods. Livonia-based Team Schostak

Family Restaurants and Applebee’s are working with the Eight Mile Boulevard Association to find local photographers to submit work to create murals and hanging pictures. Interested photographers should email their work to Jordan@eightmile.org by June 11.

ESD launches mini-MBAs Tight on time but looking for a strategic learning option? The Engineering Society of Detroit is calling a new program a “mini-MBA.” In conjunction with the Ferris State University College of Business and the American Center for Educational and Professional Services, a Dearborn training firm, the society is launching a series of five-day programs targeting area business execs. The first is scheduled for 9 a.m. to 5 p.m. June 8-12 at ESD’s Southfield headquarters. Classes will cover strategic planning, finance and accounting, marketing essentials, presentation skills, ethics, lean management and global markets. The cost is $3,600, which includes course materials, lunches and a certificate of completion. To register, contact Deb Tice at FSU’s Corporate and Professional Development Office at (231) 591-5810 or cpd@ferris.edu or register at ferris.edu/cpd.

Brainstorming at Packard On Tuesday, Detroit Future City is hosting a session for the public to come and Think Big Thoughts on “opportunities for innovation in Detroit.” And while we at Crain’s like to think big thoughts with the rest of them, we can’t lie that we’re most excited about the location: Packard Automotive Plant Building 22. So it’s a legal excuse to visit the Packard Plant. Tuesday’s event will be held 6-8 p.m. A panel will discuss innovation, including Rufus Bartell, owner of Simply Casual; Lydia Guiterrez, co-founder and president of Hacienda Mexican Foods; William Jones, CEO of Focus: Hope; and Dan Kinkead, director of projects for DFC. James Canning, spokesman, said the event seeks to engage people within their own communities and Future City’s planning framework.

DBpageAD_DBpageAD.qxd 5/20/2015 9:28 AM Page 1

Get a $150 credit* for your business for each smartphone line.

Plus, qualifying Small Business Customers can receive a Corporate Service Discount of 10% or more.** *New 2-yr. activation on $34.99+ plan req’d. Offer exp 6/30/15. **New 2-yr. Major Acct Agmt req’d. Offer exp 7/31/15.

Get the coverage, speed and reliability your business needs on the largest, most reliable 4G LTE network. Experience why more small businesses choose Verizon than any other wireless carrier.† 1.800.VZW.4BIZ †

vzw.com/business-bill-credit

vzw.com/storelocator

Results based on third-party study. Account credit applied within 2-3 billing cycles. Credit will be removed from account if line is suspended or changed to non-qualifying price plan after activation. Offer expires 5/17/2015. Activation/upgrade fee/line: $40. IMPORTANT CONSUMER INFORMATION: Corporate Subscribers Only. Subject to Major Acct Agmt, Calling Plan, & credit approval. Up to $350 early termination fee. Offers & coverage, varying by svc, not available everywhere; see vzw.com. While supplies last. Restocking fee may apply. © 2015 Verizon Wireless. I6186

20150601-SUPP--0001-RG1-CCI-CD_--

5/27/2015

5:10 PM

Page 1

SPECIAL REPORT: MACKINAC POLICY CONFERENCE

Retooling the workforce

Detroit’s food economy takes root Page M14-15

The war for talent What’s a hiring manager to do? Page M3

Apartment fund: $200M being raised for Detroit housing Page M13

Private 200 Crain’s List M47-M54

New recipes for community colleges, Page M35

The state of STEM education, Page M4

COVER PHOTO: HENRY FORD COLLEGE BY LARRY PEPLIN

DBGateFlap_DBGateFlap.qxd 5/18/2015 1:31 PM Page 1

Navigating todayâ&#x20AC;&#x2122;s health care environment alone can be tough.

DBGatespread_CDB gatefold spread 5/18/2015 2:15 PM Page 1

hap.org/solutions

In today’s ever-changing health care environment, it’s important you understand how health care reform can impact your business. HAP has the expertise to help you navigate this complex landscape and a variety of plan options to ensure you ﬁnd a plan that best meets your business needs. • Wide range of affordable plan options, including fully-insured, self and shared funding

HAP is here to guide you through it.

• Strong statewide network of doctors and hospitals, plus our Henry Ford and Genesys Choice high-performing networks • Award-winning customer service with a dedicated account representative for your business • A personal service coordinator to answer questions and help guide each member through the ﬁrst two years of membership

Let HAP help you ﬁnd your perfect solution.

Visit hap.org/solutions or call (855) 226-0096.

DBGatespread_CDB gatefold spread 5/18/2015 2:15 PM Page 1

hap.org/solutions

HAP is here to guide you through it.

Let HAP help you ﬁnd your perfect solution.

Visit hap.org/solutions or call (855) 226-0096.

20150601-SUPP--0003-RG1-CCI-CD_--

5/27/2015

4:38 PM

Page 1

CRAIN’S DETROIT BUSINESS // June 1, 2015

MACKINAC POLICY CONFERENCE

The talent takeaway Cherry picking of skilled workers miffs smaller engineering firms By Dustin Walsh dwalsh@crain.com

ver the past 12 months, 10 percent of IAV Automotive Engineering Inc. ’s U.S. employees have left to work for customers. The Northville-based engineering firm is losing its talented engineers to its larger automaker customers that have larger recruiting budgets and larger compensation packages to offer, said Andy Ridgway, president of the German supplier’s U.S. operations. “OEMs are hiring, but they are not necessarily bringing in talent from outside the area; that frustrates me,” Ridgway said. “They have the resources to bring talent in from anywhere, but instead there’s a lot of cherry picking going on locally.” IAV isn’t alone in the war for talent that threatens to leave long-lasting wounds across Southeast Michigan’s supply base as the quest for the right worker gets competitive. Lisa Katz, executive director of Detroit-based Workforce Intelligence Network of Southeast Michigan, said labor pressure is causing large employers to expand their recruiting practices and competition is fierce. “It’s taking employers about 47 to 50 days to fill key positions, which is a really long time,” Katz said. “There’s much more demand than supply and that makes everyone desperate. I tell employers, jokingly, not to let their employees outside because there’s probably a recruiter waiting to talk to them.” Automakers’ need for talent is rising with increased shifts, investments and car sales. With projected U.S. car sales to top 17 million this year, manufacturers are putting in overtime, on the shop floor and in growing their operations. For instance, General Motors Co. announced this month a $1 billion investment at its Warren Technical Center that is expected to create 2,600 jobs as part of a $5.4 billion investment plan at U.S. operations. Bill Huffaker, global director of talent management and acquisition at GM, said under CEO Mary Barra’s leadership, his department has seen large budget increases to secure new hires. “If you have the money, you can hire people,” Huffaker said. “Frankly, we’re not having problems hiring.” Ridgway said in certain cases his employees were offered a 30 percent salary increase to leave the firm. “I simply can’t counter that,”

[ISTOCK PHOTO]

Andy Ridgway’s Northville-based firm, IAV Automotive Engineering Inc., has lost 10 percent of its workers in the past year to his customers. Ridgway said. “Also, I don’t think it’s sustainable.” Ridgway said the employees that left for customers cost IAV roughly $1 million in recruiting and training costs alone. Katz said many larger employers recruit locally because it’s simply easier, and cheaper, to convince recruits to change companies locally than move them from outside the region. “Workers do not always want to move for a job …,” Katz said. “… and recruiters do not always want to travel to find workers, even if they have the budget.” Keeping talent

The outside forces of recruiting have forced suppliers to look inward, focusing heavily on retaining talent. IAV recently implemented a “European-style” vacation policy as well as a flexible schedule. New employees start with 25 days vacation with the ability to gain more with seniority — which is much higher than the average of 10 days of vacation for many suppliers. “We’ve done tremendous things to pass on non-economic things to keep our employees,” Ridgway said. “We’re trying to make it more diffi-

cult for our people to leave and because of these changes, we’ve seen our attrition rate slow in the past three months.” At Southfield-based Lear Corp. , it’s the perks that play a role in retaining top talent, said Tom DiDonato, senior vice president of human resources. Lear offers a flexible work schedule, but also offers workdays that end at noon on Fridays between Memorial Day and Labor Day. “These kinds of things appeal to all people, but particularly to our young engineers,” DiDonato said. “We believe this offers us a competitive advantage.” For Plymouth Township-based Rassini Interna tional Inc., keeping the top talent is ensuring they Tom DiDonato: Lear employs perks are challenged in the workplace, to keep workers. said Mauricio Gonzalez, engineering director of the supplier’s brake division. “Our culture is based on the competencies of our people,” Gonzalez said. “We’ve found people stay with us for more reasons than money; it’s

“ I tell employers, jokingly, not to let their employees outside because there’s probably a recruiter waiting to talk to them.” Lisa Katz,Workforce Intelligence Network ofSoutheast Michigan

usually about challenging work, so if we challenge our people, they perform better at Rassini and are more likely to stay.” Rassini acMauricio Gonzalez: complishes this More about by placing emchallenge,not money. ployees in crossfunctional groups, allowing them to handle different parts of the supplier’s operations and customer demands, Gonzalez said. Rassini, the U.S. subsidiary of Mexican supplier Rassini SAB , lost two of its brake division employees in the last two years to competitors and customers, Gonzalez said. The division employs 12 and a total of 48 employees work at the Plymouth Township office and lab. The right fit While GM and others aren’t struggling to hire talent, questions remain whether they are hiring the right talent. “We know we don’t have a problem hiring talent, but are we hiring the best people to design and build our products?” Huffaker said. “The paradigm has shifted; smart companies have realized this, in that we have to treat employees and potential employees like customers.” Huffaker said GM has undergone a culture shift and is working to “demystify” the career path for incoming and current employees. “They don’t teach college students how to navigate the corporate world, so we’ve invested in career development,” Huffaker said. “We want leadership skills and it’s much more helpful to have a prescribed road map when employees enter the company, but we’re not making those decisions for them, we’re giving them the

skills to be in the driver’s seat over their own career.” Dana Arbach, director of human resources for Osram Opto Semicon ductors Inc. in Northville, said it maintains much of the recruiting in-house and invests more, and takes longer, to find the right fit for its company. “It’s not unusual for posiDana Arbach: tions to be open Osram Opto takes for a month or time to find right fit. more,” Arbach said. “We have a robust interview process because we’re looking for the right personalities to work with our teams.” Arbach said Osram only hires about five to seven employees in Michigan each year and that personality often outweighs education in its interview process because the right mix of experience and character has proven to be a successful formula for the niche lighting supplier. Osram, a subsidiary of Germanybased Osram Licht AG , employs 25 in Northville. For IAV, finding the right fit can mean looking outside the U.S. Berlin-based IAV GmbH, the parent of IAV in Northville, has a robust expatriate assignment program and the local office is the beneficiary, Ridgway said. As many as 40 percent of recent hires have required visas, Ridgway said. “I try to keep 20 percent to 25 percent of workers as expats, and that’s been a big help (in securing the right talent),” Ridgway said. “For us smaller companies, bringing people into the area is more cost prohibitive, so I think we’d all like to see the larger players put more effort into attracting more outside talent.” 䡲 Dustin Walsh: (313) 446-6042 Twitter: @dustinpwalsh

20150601-SUPP--0004-RG1-CCI-CD_--

5/27/2015

2:38 PM

Page 1

CRAIN’S DETROIT BUSINESS // June 1, 2015

MACKINAC POLICY CONFERENCE

Is STEM taking root? Despite efforts to meet the need for skilled trades workers, shortages remain By Gary Anglebrandt Special to Crain’s Detroit Business

ichigan has gotten the hint: Employers need STEM-trained workers. Efforts have been made to plug the gap by lots of stakeholders — high schools, community colleges, employer groups, nonprofits, workforce agencies, foundations and businesses. Yet the need for specific kinds of workers still exists. “The issue has been out there long enough for people to have an understanding of it,” said Gary Farina, executive director of the Michigan STEM Partnership in Lansing. “It’s on their radar, and they’re out there seeing what they can do.” And there is a lot to do, judging by recent studies. Much of the growing need is for middle-skill workers — those with more than a high school diploma but less than a bachelor’s degree, such as largely technical jobs in manufacturing and health care, said a J.P. Morgan Chase & Co. report published in April. It’s one of the most recent of many studies showing the need to educate more students in science, technology, engineering and math. The Chase report focused on the six-county metropolitan statistical area of Lapeer, Livingston, Macomb, Oakland, St. Clair and Wayne counties. Middle-skill occupations represent 17 percent of all jobs in Southeast Michigan, and the number will continue to grow as baby boomers retire and more than 5,700 of these types of jobs are expected to open every year through 2018, the report said. Average hourly wages for these jobs are $23.37 an hour, compared with the living wage of $17.08. A report by Georgetown University says Michigan will have an estimated 228,000 STEM-related jobs by 2018, with nearly 8.7 million in the U.S. as a whole, according to the U.S. Bureau of Labor Statistics. State’s response

The forecasts and cries from businesses haven’t been lost on Lansing. Gov. Rick Snyder, who often speaks about the need for more STEM education, has reorganized state workforce and economic development offices under the new Michigan Department of Talent and Economic Development, or TED. In February, Snyder committed $50 million in new funding for community colleges to buy equipment to build up their skilled trades programs. To be awarded the Community College Skilled Trades Equipment Program grants, schools had to

[ED MAURER]

Students Shawn Johnson (left) and Jason Vassil go over the results of a milled part made during training at Macomb Community College as part of the Michigan Coalition for Advanced Manufacturing program funded by a grant from the U.S. Department of Labor. demonstrate significant demand from employers for the programs for which they sought funding, said Stephanie Comai, director of the new Talent Investment Agency within TED. Among the schools receiving the state grants were Henry Ford College, $4.5 million; Macomb Community College, $2.8 million; Oak land Community College, $4.5 million; and Washtenaw Community College, $4.3 million. Last year, Snyder opened the Michigan Office for New Americans to attract workers from other countries to fill STEM jobs. The agency joined the Global Talent Retention Initiative of Michigan, which seeks to do the same thing. The governor also has proposed increasing funding of the Skilled Trades Training Fund to $20 million from $10 million. The fund, which helps cover training costs for employers struggling to find skilled workers, was used to train 10,000 people last year, Comai said. Employers must match the amount the state delivers. Lawmakers also have gotten into

“It’s a Catch-22. Everybody sees the need. Nobody wants to pay for it.” Todd Palmer, Diversified Industrial Staffing

the game with legislation that would allow STEM endorsements to be put on high school diplomas for students who earn certain credits. Colleges take STEM steps Along with some Michigan community colleges using state STEM equipment grants to improve programs, Macomb Community College received a $24.9 million grant from the U.S. Department of Labor in 2013 to lead a coalition of eight Michigan community colleges called the Michigan Coalition for Advanced Manufacturing, or M-CAM. The program trains displaced and underemployed workers according to employers’ needs in CNC machining, welding, mechatronics and production operation. Training began six months ago

and ranges from four to 15 weeks for individual programs. Students train 40 hours a week. So far, Macomb alone has placed 27 people in jobs through the program and plans to place 252 throughout the grant period. Lawrence Technological University, already an inherently STEMcentered school, will deepen its offerings when it opens the Taubman Complex next year at the Southfield campus. The complex will house the Marburger STEM Center, which will have labs and be home to a robotics program. The school asked leaders of companies what skills they need and is building experiential applied learning programs to suit. Software engineering is one big area of demand, said LTU President Virinder Moudgil.

Other initiatives Here’s a sampling of some of the other organizations and initiatives surrounding STEM workforce development: Project Lead the Way, Focus: Hope, Workforce Intelligence Network, Global Detroit, Detroit Area Pre-College Engineering Program and the STEM Careers and Skilled Trades Task Force, which is organized by the Southeast Michigan Council of Governments and Metropolitan Affairs Coalition. Troy-based Diversified Indus trial Staffing Inc. is launching its own training program out of frustration in trying to find skilled workers. The top four jobs in demand right now are CNC machinists, skilled welders, manufacturing equipment repair technicians and operators of coordinate measuring machines, President Todd Palmer said. Most of these workers are 50 to 60 years old. The problem is getting someone to pay for training of See STEM, Page M6

DBpageAD_DBpageAD.qxd 5/8/2015 1:18 PM Page 1

Photo taken at the grand opening of The Mall of San Juan, March 26, 2015

T H A N K Y OU for your vision, wisdom, inspiration, laughter and love. Guided by the lessons of your extraordinary life, we will continue to work every day to â&#x20AC;&#x153;make things better, not just different.â&#x20AC;?

Taubman Centers, Inc. s www.taubman.com

20150601-SUPP--0006-RG1-CCI-CD_--

5/27/2015

1:17 PM

Page 1

CRAIN’S DETROIT BUSINESS // June 1, 2015

MACKINAC POLICY CONFERENCE

STEM, from Page M4: The gap younger workers. Either the wouldbe trainees don’t have enough money to do it, or the employers don’t want to chance investing in people. “It’s a Catch-22,” Palmer said. “Everybody sees the need. Nobody wants to pay for it.” Michigan Advanced Technician Training, or Mat2, is a state program that funnels high school seniors and graduates into skilled labor jobs through alternating periods of schooling and work. It works fine for large companies but is ill-suited for smaller ones that need workers on site every day, he said. “Both sides want to kick the can. It’s going to have to reach a breaking point,” Palmer said. Until then, most companies prefer to pilfer talent from competitors. Tweaking the message The Chase report called for an overarching organization to align the many efforts aimed at the skills gap. But Michael Hansen, president of the Michigan Community College Association , and others said the issue is better handled locally, where schools are in close contact with local employers. Better communication would make the biggest difference, Palmer said. “If I was the STEM czar of Michigan, I’d like to see a concerted marketing effort to make STEM jobs and STEM education cool for kids in the seventh grade and up,” he said.

That refrain is heard throughout conversations on STEM education. After years of parents and students walking away from manufacturing, few realize that real money and careers can be made there. Messaging and programs need to start earlier in students’ education, those versed in the subject say. TED plans to make available a video series aimed at getting elementary school students thinking about technical work. It also plans to release new videos at the Mackinac Policy Conference showing television show host Mike Rowe speaking on opportunities in technical work. Snyder also proposes beefing up funding for career technical education to allow students to do dual enrollment at their high schools and community colleges at the same time. Driving home the point for Comai of the state’s Talent Investment Agency was an astronaut she happened to meet at an event in April who said younger astronauts come armed with doctorates but don’t know how to use basic hand tools. “The goal is to make sure people understand what are the high-demand jobs that are well-paying and can support a family, many of those highly technical,” Comai said. Some of the work already being done to this end includes Macomb Community College’s participation in Mat2. And both Lawrence Tech and Macomb hold

[COURTESY PLYMOUTH-CANTON SCHOOLS]

Students in the Plymouth-Canton Community Schools‘ STEM Academy complete a gram stain from bacteria they cultured in a Principles of Biomedical Science class. robotics fairs where schoolchildren get hands-on experience in projects involving math, computer science and mechanical engineering all at once — even if they don’t realize it. John Dugger, a professor in the School of Technology Studies at Eastern Michigan University, heads the Michigan affiliate of Project Lead the Way, which delivers engineering and biomedical courses to high schools

.org

and middle schools. In Michigan, 118 schools participate, with more expected to take part this year. “To meet future needs and create opportunities for students that result in a good quality of life, we have to start much earlier,” Dugger said. “That’s what we’re all about.” The courses are developed by teachers and engineers. To be certified to use the program, schools must demonstrate links to local industries and employers. For example, the Plymouth-Can ton Educational Park , comprising three high schools, has a STEM Academy that thas two tracks, biomedical science and engineering. Students who pass a national Project Lead the Way exam get college credit at participating schools such as EMU, under its engineering technology program, or Kettering University in Flint. Forget the unicorns

Dear Future Automotive Experts, Ɛ Ă ŶĞǁ ĂƵƚŽŵŽƟǀĞ ƉƌŽĨĞƐƐŝŽŶĂů͕ ǇŽƵ ǁŝůů ďĞ ƐƵƌĞ ƚŽ ĨĂĐĞ challenges as the Baby BŽŽŵeƌs cŽnƟnƵe tŽ ƌeƟƌe͕ ĐĂƵƐŝŶŐ ŐĂƉƐ ŝŶ ŬŶŽǁůĞĚŐĞ͘ dŽ ŚĞůƉ ǇŽƵ tackle this challenge͕ / ' ŚĂƐ ƐƚĂƌƚĞĚ Ă ƉƌŽŐƌĂŵ ǁŚŝĐŚ ǁŝůů ĨŽĐƵƐ ŽŶ ƉƌŽǀŝĚŝŶŐ knowledge recovery and transfer ĨŽƌ ĂƵƚŽŵŽƟǀĞ ƉƌŽĨĞƐƐŝŽŶĂůƐ ŝŶ ƚŚĞ ŝŶĚƵƐƚƌǇ͘

WƌĞƐĞŶƚĂƟŽŶƐ ŝŶ ƚŚĞ ĂƌĞĂƐ ŽĨ YƵĂůŝƚǇ͕ ^ƵƉƉůǇ ŚĂŝŶ ĂŶĚ ŽƌƉŽƌĂƚĞ ZĞƐƉŽŶƐŝďŝůŝƚǇ ĨƌŽŵ sƵbũect ŵaƩer eǆƉerts ĂƐ ǁĞůů ĂƐ networking oƉƉortƵniƟes will be Ɖrovided at the free monthly events͕ ǁŚŝĐŚ ĂƌĞ ŚĞůĚ ŝŶ ƚŚĞ DĞƚƌŽ ĞƚƌŽŝƚ ĂƌĞĂ͘

Interested in learning more? all Ƶs at ϮϰϴͲϯϱϴͲϵϳϴϬ for Ɖrogram details͊

While the actual numbers are uncertain, everyone agrees that skilled workers are definitely needed. But the issue is more complicated than it appears, Hansen said. Economists he has spoken with note that highpaying industries “never seem to have a problem Michael Hansen: finding workers,” Wages might also he said. “Maybe be an issue. there’s a shortage in certain skill areas, but it could be a wage issue as well.” When peeling back the layers, Hansen has seen employers who start off lamenting a lack of skilled talent go on to describe a set of needs that would drive most people away. “You start really pressing them, and it’s, ‘Well, we put an ad in the paper saying we need someone for the second shift, 60 miles from the

nearest town, six days a week, and we can’t find anyone to pass a drug test’ ... and they’re wanting to pay 50 cents over minimum wage,” he said. Educators also have to be careful not to train people for very specific employer needs at one point in time, only to watch those needs evaporate. Better to give students a base set of skills from which they can adapt, Hansen said. Employers can be forgiven for needing a hand after watching years of career and technical education in retreat, Comai said. In the past, “employers only had to do a little bit of training to get (new workers) up to speed.” But the difference has grown too great for them to do it all now, she said. Joseph Petrosky, dean of the engineering and advanced technology department at Macomb Community College, said employers are starting to understand that they need to stop looking for unicorns — workers who are perfectly suited to very specific jobs but don’t actually exist. Now that they’re out of survival mode after the recession, they’re warming to restarting apprenticeship programs. Whatever the number of jobs there will be, it’s clear that in some areas, demand outstrips supply. At LTU, when one company hired a crop of engineers and asked for more, a dean asked a group of students whether they were interested. “Not a single person raised a hand,” Moudgil said. “Every person already had a job and signed a contract.” The problem isn’t just local. Emerging economies will continue to invest in themselves and challenge the U.S. in technology. “The issue is to be competitive on a global scale.” Moudgil said. “This is what the country needs to be: the pre-eminent leader in the free world.” 䡲

DBpageAD_DBpageAD.qxd 5/27/2015 11:19 AM Page 1

JOIN CRAIN’S AS WE

Rewind The Tape IN AMERICAN HISTORY with keynote speaker

JOHN DEAN, former White House Counsel to President Richard Nixon

3OXV

Wednesday, June 10

Ŷ EDUCATIONAL SESSIONS • Automotive • Cybersecurity • E-discovery • M&A • Social Media • What your CFO wants you to know Ŷ AWARDS PROGRAM AND DINNER Ŷ KEYNOTE SPEAKER

Westin Book Cadillac, Detroit • 2 p.m.-7:30 p.m.

Meet the 2015 General & In-House Counsel Honorees

TITLE SPONSOR

Kirsten Hewitt

Lois Bingham

Michelle Busuito

Daniel Follis Jr.

Sean Etheridge

Whirlpool Corp.

Yazaki North America Inc.

Suburban Mobility Authority for Regional Transportation

Compuware Corp.

Stryker Corp.

Carlos Herrera

Janet Kelley

William Coughlin

Christina Flint

General Motors Co.

Meijer

Ford Global Technologies and Ford Motor Co.

Diplomat Pharmacy Inc.

IN PARTNERSHIP WITH

SESSION SPONSORS

NOTEBOOK SPONSOR

MAJOR SPONSOR

IN COOPERATION WITH

BAG SPONSOR

KEYNOTE SPEAKER SPONSOR

BREAK SPONSOR

LOCATION SPONSOR

Nonproﬁts: Tell your story to the business community at a discounted rate! Put your organization in front of Detroit’s business and philanthropic leaders. Ŷ Published and distributed in the Oct. 26 issue of Crain’s, positioning the nonprofit profiles in front of business owners, CEOs, presidents and top-level executives. Ŷ The digital edition will be available for an entire year on CrainsDetroit.com

The first 52 nonprofits to sign up will be featured as a “Nonprofit of Note” in an issue of our Nonprofit Report e-newsletter.

BONUS DISTRIBUTION:

WKDQ V V H / OHIW V W R S V

Ŷ 750 distribution to wealth managers and estate/ trust attorneys in Southeast Michigan Ŷ 800 additional copies will be distributed at the AFP annual Philanthropy Day Dinner

Publication Date: Oct. 26, 2015 | Profile Reservation Deadline: Aug. 14 | Profile and Ad Materials Due: Aug. 28

CONTACT: Marla Wise at mwise@crain.com or (313) 446-6032

*At the time of publishing

20150601-SUPP--0008,0009-RG1-CCI-CD_--

5/27/2015

5:30 PM

Page 1

CRAIN’S DETROIT BUSINESS // June 1, 2015

MACKINAC POLICY CONFERENCE

Exit strategy Colleges, universities take more steps to ensure students find and stay on a path to success By Kirk Pinho kpinho@crain.com

ark Saint Amour, one of my best friends from high school, lives on the west side of the state with his wife, a highly trained and very well-educated counterterrorism and crime analysis expert with a master’s degree in intelligence analysis from the University of Detroit Mercy. Mark, 31, has been in college for the better part of the last 14 years, nearly half his life, struggling with financial aid issues, maintaining a full-time job and a marriage and switching majors and universities while trying to Mark Saint determine what Amour: Juggling he wants to do school, work with his life since we graduated from Redford Union High School in 2001. He’s not alone in the evervacillating higher education landscape. There are tens of thousands of students in Michigan trying to find a nontraditional pathway to graduation and eventually a career they love. And they are getting help. Steps are being taken to make the system more coordinated, more nimble, to help students like Mark more easily adapt when they are thrown curveballs that would put them in the category of “the almostgraduates.” Skills gap Daniel Hurley knows these stories well. The Northville Township native, who on July 1 will become CEO of the Presidents Council, State Universities of Michigan, said the state’s higher education system is still trying to reconcile its manufacturing history with its need to churn out workers with postsecondary training and education.

“This is a state that, for decades, had prospered very well with middle to high incomes in the manufacturing sector that didn’t require significant levels of postsecondary education,” said Hurley, currently the associate vice president for government relations and state policy at the Washington, D.C.-based American Association of State Colleges and Universities. “And we know what has happened with the transition to a knowledge-based economy.” Yes, we do. So often we hear reports of the mismatch between educational curriculum planning and the practical kinds of skills employers really need. For example, an April report from J.P. Morgan Chase & Co. said that the 207,000 health care and manufacturing jobs from 2013 to 2014 represented 56 percent of new job postings for middle-skill jobs — those requiring more than a high school degree but less than a bachelor’s degree — in Detroit. But, according to the report, the median average hourly wage for middle-skill health care positions is $27.77, yet job postings often go unfilled for months. Helping Detroit city residents obtain well-paying middle-skill jobs must be a regional workforce development priority, the report said. In order to meet employer demand, the report offers several recommendations to address the skills gap, including a regional master plan aligning regional workforce goals and outcomes to prepare Detroit residents for middle-skill occupations in highdemand sectors. It also recommends encouraging employers, educators and community-based organizations to collaborate by building an employer-endorsed curriculum to effectively prepare residents to secure middle-skill industry occupations in the region. “A welder 20 years ago, you gave him a torch and a piece of metal and they learned how to weld,” said

[LARRY PEPLIN]

Neil Huey trains on a press at Macomb Community College as part of the Michigan Coalition for Advanced Manufacturing program at the college.The program is funded by a grant from the U.S. Department of Labor.

Mike Hansen, president of the Michigan Community College Association. “I was on a tour recently and there were guys in khakis and polo shirts who were welders but were using computers to run these giant welding machines.” Gateways to graduation I had a proclivity for math and computers and Web design when growing up, so I entered college as a computer engineering major — a major that obviously didn’t stick. But fast forward a few years. As I started the graduate school application process, I trembled at the thought of taking the GRE, shorthand for the Graduate Record Examination. (I actually scored much higher on the math portion than the writing portion of the GRE. Go figure.) I was fearful because I had long forgotten the Pythagorean theorem, geometric proofs, how to calculate the earth’s distance from a particular star. Linda Hagan, chairwoman of business Linda Hagan: communications Walsh has an at Walsh College, option that allows understands that students to skip the fear, particularly given that so GMAT to enter its many Walsh MBA program.

[GLENN TRIEST]

Culinary students get a lesson from Master Chef Brian Beland (center) at Schoolcraft College in Livonia.The school is offering a bachelor’s in culinary arts beginning this fall. students are years or even decades removed from the classroom setting. Enter the Graduate Gateway program at Walsh that allows MBA students to skip taking the Graduate Management Admission Test, often required for admission to an MBA program. The gateway program, which started in the fall, allows students to take two courses — one focusing on writing and communication, another focusing on quantitative and qualitative skills — and forego

the GMAT altogether. And that, eliminating a huge psychological barrier to entry, is certainly a win for Walsh MBA students, and for Walsh in recruitment. There also are more collaborative agreements between universities, articulation arrangements that are easier to navigate, and course offerings that are more up to date on the kinds of high-tech skills or leadership skills really needed in See Next Page

20150601-SUPP--0008,0009-RG1-CCI-CD_--

5/27/2015

5:35 PM

Page 2

CRAIN’S DETROIT BUSINESS // June 1, 2015

MACKINAC POLICY CONFERENCE From Previous Page

today’s changing workforce. Oakland University, for example, has reduced the fear students have had of belatedly learning that a chunk of their community college credits didn’t transfer to a fouryear university, for one reason or another. “Students want to get a four-year degree and try to transfer those credits and a third of them don’t transfer, Michael Hansen: which is Students get extremely frustrated when frustrating and credits don’t transfer. not fair,” said Hansen. Believe me, I’ve heard those war stories during my stints teaching English composition at Oakland Community College in Waterford Township. But it is getting better out there. For example, through the Oakland University Community College Partnership Program, students get joint and concurrent enrollment at both OU and either Macomb Community College, Mott Community College, OCC or St. Clair County Community College. And last year, Wayne State University and Oakland Community College announced an agreement allowing OCC students who have received associate degrees in business administration to transfer up to 82 of those hours to WSU to complete their bachelor’s degrees there. There’s also the Michigan Transfer Agreement, which guarantees that 30 credit hours in general education classes like English composition, math, social sciences and natural sciences transfer to four-year universities. An eye on the goal: Jobs But let’s face it, the higher education community can have as many articulation agreements and transfer pacts as it wants, but if its graduates aren’t able to get jobs in their chosen fields, we must rethink how they are educated in the first place. That’s why it’s refreshing to see many colleges and universities and community colleges retooling programs and adapting to a changing workforce environment, one in which we need not only the latest in high-tech jobs, like data scientists and cybersecurity experts, but also well-trained workers for the new manufacturing positions that have come to Michigan with the resurgence in the local economy. For example, in April, Macomb Community College announced a new digital sculpting program to fill a void in the automotive industry of workers with both digital design skills as well as sculpting skills. The dearth was created because sculpting has been gradually phased out of college curricula because of the

[COURTESY PLYMOUTH-CANTON SCHOOLS]

Students in the Plymouth-Canton Community Schools’ STEM Academy work on a lesson in antibiotic sensitivity. perception that it was being entirely replaced by digital processes. “People, particularly designers and engineers, still like to look and touch and feel things,” said Joe Petrosky, dean of engineering and advanced technology at MCC, in an April interview. And Wayne State could offer a master’s Joe Petrosky: degree in big MCC has a new data and digital sculpting business program. analytics, offered jointly by the College of Engineering and School of Business Administration, by the fall of 2016. The 30-credit program would be unique because of its equal emphasis on data analytics and business. There would be three concentrations: big-data engineering, big-data analytics and big-data business. It would still need approval from the graduate school and board of governors. Skilled trades Gov. Rick Snyder has put his stamp of approval on an effort with national support, the rallying cry for training workers to fill good-paying blue-collar manufacturing jobs. There’s an acknowledgment from the governor on down that skilled trades have a solid place in Michigan’s economy and we need a better talent pipeline for it. “We have more work to do with parents and kids, addressing the cultural perception of the skilled trades and redefining them in a better fashion,” he told me in a May interview. “In many cases, one of the issues with the parents

is that they have a view of a skilled trades profession that goes back 20 years or longer. Same thing with kids.” And he’s right. We aren’t just talking welding or machine repair. We’re talking things like robot manufacturing, 3-D printing, running and maintaining computers behind alternative energy systems. In his January State of the State speech, Snyder said the $50 million Skilled Trades Training Fund, which provides competitive awards for employer-responsive training to enhance talent, productivity and employee retention, provided additional training and job opportunities to more than 10,000 Michigan residents last year. He also told me last month that employers need to be more proactive in making it known exactly what their employment needs are, and not just in skilledtrade fields. But all stakeholders — state government, colleges and universities, and employers — need to have a seat at the table. “We need to have all these organizations work more seamlessly together,” he said. STEM education is also high on Snyder’s agenda. There are an estimated 60,000 unfilled jobs in Michigan related to science, technology, engineering and math. “We have a high demand for those professions in the state,” he said. Handshakes are important I still get nervous going to an upscale lunch event. That’s because even to this day I have difficulty remembering which forks are for which portion of the meal, which glass of water I should drink from, and which

coffee cup is mine. “We have more and critically on If I had anything your feet, and work to do with most importantly, like the Warriors Business Community you have to listen,” parents and at Wayne State, I he said. kids, probably wouldn’t And in a way, still have this addressing the that’s part of what problem. Hurley said needs cultural The Warriors to be a continued perception of focus of higher Business Community, a education: the skilled living/learning Producing trades.” community in graduates with the Ghafari Hall for full spectrum of Gov.Rick Snyder freshman business skills. students, offers “It’s been a seminars on things like frustration increasingly in this professional appearances, country and over the years from business etiquette and other somany in higher education of what called “soft skills,” said Bob is viewed as an increasingly Forsythe, dean of the School of utilitarian view of college Business. education, i.e., you go to college to Clearly such a class is needed: “I get a job,” he said. don’t know how many hands I “We need to prepare students shook at graduation last week, but not just for the world of work, but about 25 percent of them need to for vigorous participation in work on their handshake,” society, and not just equipping Forsythe said. them with job-specific, applied Walsh College and other skills, but to provide them with a colleges in Michigan similarly offer capacity to transfer those skills etiquette instruction as part of into everyday life and to undergraduate and MBA contribute in a manner that will programs. allow them to meaningfully WSU also is going to offer things contribute to their communities — like improvisational performances critical thinking, complex problem from Second City starting in the solving, written and oral fall to help students with their communication skills, the ability interpersonal skills. to work well in teams.” 䡲 Kirk Pinho: (313) 446-0412 “You ought to be able to look at Twitter: @kirkpinhoCDB people in the eye, think quickly

Are You Tired Of Hearing This From Your Buyers?

Buyers Are Stronger Than Sellers Today! Stop Geƫng Beat Up On Price and Stop Being CommodiƟzed!

Join us for our Business Leaders Workshop,

“NEGOTIATING WITH THE SAVVY BUYER” Thursday, June 25th, 8:30 - 11:00 AM SeaƟng is Limited | Reserve Your Spot Today

www.gerryweinberg.sandler.com or Call 248-353-4030

20150601-SUPP--0010,0011-RG1-CCI-CD_--

5/27/2015

12:09 PM

Page 1

CRAIN’S DETROIT BUSINESS // June 1, 2015

M10

MACKIN

Poll: Despite optimism, biz not bullish on hiring

EXPERIENCE NEW STYLE AND FLEXIBILITY LE IN THE HEART OF DETROIT. · 1,298 stylish new guest rooms with soaring city views · 100,000 square feet of dynamic new event space · The latest technology at your fingertips Set your group on the downtown river walk and explore an iconic meeting destination redesigned to make events easier, bolder and unforgettable.

By Lindsay VanHulle Crain’s Detroit Business/Bridge Magazine

DETROIT MARRIOTT® AT THE RENAISSANCE CENTER 400 RENAISSANCE DRIVE DETROIT, MICHIGAN 48243 PHONE 313.568.8300 DETROITMARRIOTT.COM

The automotive suppliers, manufacturers and shopping mall owners that Donald Kunz counts among his law clients seem more optimistic these days. Unemployment is falling. Interest rates remain low. And with postbankrupt Detroit giving way to new downtown development and entrepreneurship, “my sense is everyone’s got more spring in their step,” said Kunz, chairman of Detroit-based law firm Honigman Miller Schwartz and Cohn LLP’s corporate law department. Kunz and his corporate clients are part of a growing group of metro Detroit businesspeople who say they’re optimistic about the state of the economy, now in its sixth year of post-recession rebound. Slow growth

GOT AN IDEA TO GROW BIG? GET $100K. Detroit / Hamtramck / Highland Park

MES SOMETI ESS N I S U B YOUR EDS JUST NE BUZZ D O O G SOME

Attend an Info Session: THURSDAY, JUNE 11 | 6-8PM Second Ebenezer Church 14601 Dequindre Rd. MI 48212

$100k Challenge APPLICATIONS CLOSE:

JUNE 25TH

For full event details, visit NEIdeasDetroit.org WHETHER YOU CUT HAIR OR POLISH SHOES, RUN A MARKET OR BUILD APPS, SOMETIMES YOUR BUSINESS NEEDS AN EXTRA HAND TO GROW. SO, WHATEVER YOUR BUSINESS, YOU PROVIDE THE IDEAS, WE’LL PROVIDE THE BOOST.

#NEIDEAS

POWERED

PARTNERED with

But despite a sense that the state and national economies are improving, local business leaders also are not in a hurry to vastly expand their payrolls. Some of that reluctance is due to the fact that job gains and wage growth have been on a “slow growth” mode in this recovery. Some companies also have been able to extract efficiencies out of new technology and getting by with fewer employees, Kunz said. “Many of the businesses are doing better, but are doing so with productivity gains that don’t necessarily mean hiring more workers,” he said. “That’s typical of what’s going on around the country.” A May poll of 300 local business owners and managers in metro

Most of those surveyed consider Detroit’s fiscal health very important — if not essential — to the economic wellbeing of the state. Detroit by Crain’s Detroit Business and Honigman found some local company execs will add jobs and raise wages, but more are comfortable with their current workforce levels. According to the poll, 36 percent plan to hire more employees over the next 12 months, while 58 percent plan to just maintain employment levels. And besides the biggest economic development elephant in the room — roads funding — business leaders, including the survey respondents, say Lansing also needs to address the state’s worsening talent gap and help companies when they are ready to hire. (On roads funding, as this story went to press, the state House and Senate conference panels had just moved spending bills to the Legislature for final passage next week. These bills, all part of a $55 billion state budget plan, would infuse more money into roads and give a modest bump to higher education funding.) Many companies canvassed for opinions in the survey reported difSee Next Page

Rakolta: All roads should lead to education fix MACKINAC ISLAND — Resolving education problems — in Detroit and around the state — should be a higher political priority than roads, business leader John Rakolta Jr. told an opening session at the Detroit Regional Chamber ’s Mackinac Policy Conference. The Detroit Public Schools is bankrupt financially and academically, said Rakolta, CEO of the construction company Walbridge and a member of the Coalition for the Fu ture of Detroit School Children. The broad-based group met for 100 days and delivered recommendations on education reforms to Gov. Rick Snyder. But Detroit schools will not be put in bankruptcy despite huge deficits and debt because the state would be liable for that debt. Rakolta, Skillman Foundation

CEO Tonya Allen and Detroit chamber CEO Sandy Baruah spoke on a panel that focused on the coalition’s recommendations. Allen was a convener and co-chair of the coalition; Baruah also was a member. Only five of Detroit’s 285 school buildings beat the state average on scores for fourth-grade reading, Allen said. And only seven beat the math scores. Rakolta asked attendees to lobby lawmakers to support legislative changes to move reform efforts forward, including the creation of a Detroit Education Commission that would serve as a kind of “air traffic controller” to authorize opening or closing schools regardless of how they are governed. The emphasis would be on achievement. No bills have been introduced but are expected to be by the fall. 䡲

20150601-SUPP--0010,0011-RG1-CCI-CD_--

5/27/2015

12:09 PM

Page 2

CRAIN’S DETROIT BUSINESS // June 1, 2015

M11

ACKINAC POLICY CONFERENCE From Previous page

ficulties finding workers with specific skills for the jobs they are seeking to fill, and this is a common refrain during business networking events and topic of the Mackinac Policy Conference. When asked whether the skills gap is worsening, 52 percent of Crain’s survey respondents said the issue is more severe than it has been in the past, compared to just 6 percent indicating it’s getting easier to fill middle-skilled jobs. Other companies said they just aren’t comfortable yet with adding many full-time positions; the median number of near-term jobs to be added of those surveyed was four. Take small-business owner Rex Tubbs. Before the recession, Tubbs’ Plymouth-based engraving business could make nearly $100,000 of its annual sales from award plaques for automakers and their suppliers. By 2009, Tubbs said, the faucet had all but shut off to the stream of business coming from the troubled auto industry. His company, Engraving Connection, cut close to half its small workforce. Tubbs has held steady with three employees ever since. He turned to Internet sales, seeking what he hopes are recessionproof markets — weddings, military plates, memorials. More than half of his business today is online. But even as business grows, Tubbs said he doesn’t have similar plans for his workforce. If he raises wages this year, he said, it’ll be small. “I really see that the economy in Michigan is improving,” said Tubbs, “but I really am not for sure if it’s going to last.” Upbeat about Detroit Besides workforce issues, most of the Crain’s subscribers surveyed say they’ll pay attention to Detroit’s momentum post-bankruptcy, since they consider the city’s fiscal health very important — if not essential — to the economic well-being of the entire state. To that end, many are willing to pay for workforce training and public transit to help the city’s residents find and keep employment. “If we start today, we’re not going to have this new contingency for several years down the road,” said Michael Mazzeo, dean of Oakland University ’s School of Business Administration. Mazzeo said his students have had more than 90 percent success finding jobs after graduation. The bigger workforce issue, he said, is finding enough workers in the middle, who have some college education and work in fields like the skilled trades that contracted during the recession. Using state and local tax dollars to fund training is an alternative, he said, but public dollars come with their own restrictions. “We’ve lost some momentum, and regaining it again is going to take us a little while,” he said. “The real question is: At what speed can people acquire those skills?” 䡲 Lindsay VanHulle: (517) 657-2204 Twitter: @LindsayVanHulle

and

SURVEY

Busi nes s Is L ook i ng Up Highlights of the survey can be found in this issue and the full survey can be found at

honigman.com or crainsdetroit.com This is the 26th in a jointly-sponsored series on critical business issues.

20150601-SUPP--0012-RG1-CCI-CD_--

5/27/2015

11:36 AM

Page 1

CRAIN’S DETROIT BUSINESS // June 1, 2015

M12

MACKINAC POLICY CONFERENCE

Detroit’s future is about more than money: jobs too In 2014, our clients invested nearly $217M while retaining 1,684 employees and creating 1,647 new jobs.

“

Macomb County is the place where help wanted becomes job done. With a highly skilled workforce and dynamic concentration of industry we are evolving into a preferred place to do business.

“

Mark A. Hackel, Macomb County Executive

NEW INVESTMENT GM Tech Center

Paslin

$1B investment, 2,600 new jobs

$20M investment, 300 new jobs

MARY KRAMER

KUKA Systems

Yanfeng USA

$1M+ investment, 100 new jobs

$56M+ investment, 519 new jobs

Publisher mkramer@crain.com

LIFE IN MACOMB COUNTY Consistently one of Michigan's fastest growing counties, an average of 16 people move into Macomb each day With 869,158 residents, Macomb is Michigan's 3rd most populated county 32 miles of Lake St. Clair coastline 44 public marinas and 53,000 registered boaters 155 miles of hike/bike routes

INDUSTRIAL LEASE RATES IN MACOMB

How can we help you? Department of Planning and Economic Development 596-469-5285

MacombBusiness.com

RIVER NIGHTS A SUMMER FUNDRAISER BENEFITING THE DETROIT RIVERFRONT C O N S E R VA N C Y THURSDAY, JUNE 18, 6-10 P.M. $ 5 0 P E R T I C K E T ( 3 1 3 ) 5 6 6 - 8 2 0 0 R I V E R D A Y S . C O M

MACKINAC ISLAND — So Ken Buckfire’s New York consulting firm contributed $1 million to help pay the water bills for Detroit residents in danger of getting service shut off. It’s the largest non-utility contribution to The Heat and Warmth Fund (THAW) in the charity’s history. Two striking things about the gift from Miller Buckfire & Co., announced as many Detroiters were driving north for the Mackinac Policy Conference: First, the “gift” was actually part of the mediated settlement that came when Detroit Mayor Mike Duggan objected to the hefty fees charged by bankruptcy consultants. Most of the media coverage focused on the size of the gift — not the reason. Second, without a strategic vision for this aid, what is to prevent the folks getting aid now from being in the same place a year from now? It’s easy to be optimistic about Detroit right now — a cleaner balance sheet, a can-do mayor, new investment in Midtown and downtown. But the future is precarious. Detroit needs a boost in population — and jobs for the Detroiters who are here now. “You can’t fundraise your way out of this,” Gerald Brisson, president of Gleaners Food Bank, told me. Like THAW, Gleaners is one of those safety-net charities that deal in one or more of the basics: food, clothing and shelter. At Gleaners, Brisson is

looking for ways to bring more dollars into the program. One idea: trying to show, through research, that quality food can be considered part of a “treatment” regimen that results in lower health care costs and improved health of low-income people. He hopes that strategy could bring dollars from health care companies into the food-bank distribution system nationwide. But what helps people seeking aid from the food banks to become financially self-sufficient? The people getting aid — from food programs tied to Gleaners, from THAW or through a similar program administered by United Way for Southeastern Michigan — likely are in the network of other safety-net programs — or at least are eligible for them. Buckfire’s “gift” could be an opportunity for a renewed conversation among nonprofit leadership — and their funders. Why not use safety-net agencies as points of entry for more wraparound services — including training that actually leads to an entrylevel job. This is very tough work. The barriers to employment are well documented. And many of the folks who owe water bills — and there are more than 64,000 of them — are likely seniors. But is there any type of assessment or data collection that could lead to additional programs or services that give Detroiters the tools to become more self-reliant, sustainable? “Workforce” is a huge topic at this conference, including jobs for Detroiters. Identifying niche areas for lower-paying, lower-skilled jobs to move more Detroiters into jobladder opportunities has to be a part of the city’s future success. If Detroit can lead on this, it would be a national phenomenon. 䡲

Graduate programs that change lives! Open House se THURSDAY, JUNE 25

5 – 7 p.m..

ANYTIME BETWEEN ROOM 2102 • MAIN ACADEMIC BUILDING DING

Enjoy a special preview of GM River Days including: a concert by The Spinners, unlimited carnival and zip line rides,

Graduate School

Diamond Jack river tours, live sandsculpting

TO RSVP OR FOR MORE INFO:

and complimentary food and beverages by Soaring Eagle Casino & Resort,

detroitriverfront.org

Sharon Urso, 734-432-5739 surso@madonna.edu madonna.edu/gradopenhouse

Coach Insignia and more. Fun for all ages.

BUSINESS • CRIMINAL JUSTICE • EDUCATION • HIGHER ED & STUDENT AFFAIRS • HISTORY HOSPICE • HUMANE STUDIES • LEADERSHIP • NURSING • PASTORAL MINISTRY • PSYCHOLOGY • TESOL

20150601-SUPP--0013-RG1-CCI-CD_--

5/27/2015

11:37 AM

Page 1

CRAIN’S DETROIT BUSINESS // June 1, 2015

M13

MACKINAC POLICY CONFERENCE

Chicago firm seeks investors in Detroit housing By Kirk Pinho kpinho@crain.com

MACKINAC ISLAND — A Chicago-based real estate investment management company with ties to Detroit is seeking investors for a $200 million fund to invest in multifamily real estate downtown. Capri Investment Group LLC began seeking institutional, pension fund, endowment and foundation investors for the Detroit Urban Investment Fund LLC last month, according to an offering packet obtained by Crain’s. The company declined to comment. The offering cites increased investment in downtown and “substantial unmet demand for highquality housing in Detroit’s urban core” as reasons that investment in the city’s real estate is sound. “Capri believes the attractiveness of living in Detroit’s urban core continues to grow, as evidenced by the recent success of multifamily investments; but the lack of high-quality, multifamily dwelling options remains an impediment to the revitalization of the greater downtown area,” the offering says. “New developments in the core area have high occupancy levels particularly in downtown and Midtown, where, as of the date of the information included in the 7.2 Report, occupancy was near 99 percent.” Dennis Bernard, founder and president of Southfield-based Bernard Financial Group Inc. , said the demand for multifamily real estate investment from groups like hedge funds and private equity Dennis Bernard: firms is strong. “Herd mentality” is “Bernard Fito be in Detroit. nancial Group is currently working on six new multifamily projects in downtown, Midtown, New Center and going slightly east up Jefferson” Avenue, Bernard said. “It’s a herd mentality. When the word was bad about Detroit, they were told to get out. Now the herd mentality is to come to Detroit. “(Capitalization) rates are higher. Rents are still well below other major downtown markets, so they’ll see growth in rents.” Capitalization rates are a measure of determining the rate of return on a real estate investment. The fund would, the offering says, “invest primarily, directly or indirectly through entities, in multifamily and multifamily-dominant mixed-use properties in Detroit’s 7.2-square-mile greater downtown area.” The investments would be between $10 million and $30 million for individual purchases and larger for real estate portfolio purchases.

Capri is seeking a minimum investment of $5 million from each investor. Eric Larson, CEO of the Down town Detroit Partnership and president and CEO of Bloomfield Hillsbased Larson Realty Group , said institutional investment like what Capri is lining up is “critically important.” He also said Capri Investment is a well-respected company with lead-

ership savvy in real estate investment. The properties would be targeted toward demographic groups that Capri thinks are faster-growing in downtown. The investments would be made on a wholly owned or joint-venture basis. The offering says Capri has acquired and managed 83 properties in U.S. urban markets with a gross

market value of $5.6 billion in the past 22 years. In the past three years, it has spent more than $1 billion in urban multifamily and mixed-use transactions in neighborhoods such as Koreatown in downtown Los Angeles; downtown Stamford, Conn.; downtown Chicago; and Seattle. Quintin Primo III, co-founder, chairman and CEO of Capri Invest-

ment Group, is a graduate of Cass Technical High School . Gwendolyn Butler, vice chairwoman and chief marketing officer, is a graduate of Mumford High School. Primo and Butler attended the inaugural Detroit Homecoming last September. Both were speakers in separate sessions about investment opportunities in the city. 䡲 Kirk Pinho: (313) 446-0412 Twitter: @kirkpinhoCDB

DELTA DENTAL PROUDLY SUPPORTS MICHIGAN COMMUNITIES

PROVIDING DENTAL CARE TO THOSE IN NEED IMPROVING CHILDREN’S ORAL HEALTH AND SCHOOL SUCCESS

SUPPORTING THE DENTAL HEALTH PROFESSION

ENGAGING OUR EMPLOYEES ORAL HEALTH EDUCATION Learn more about Delta Dental of Michigan’s efforts to improve oral and overall health and wellness in Michigan through our Brighter Futures initiative at deltadentalmi.com/bfreport.

20150601-SUPP--0014,0015-RG1-CCI-CD_--

5/27/2015

12:07 PM

Page 1

CRAIN’S DETROIT BUSINESS // June 1, 2015

M14

MACKINAC POLICY

Detroit’s food economy sees a fork in the road Entrepreneurs feed strong appetite for startups By Amy Haimerl ahaimerl@crain.com

stare into the frozen twilight. I see a few pallets stacked near the back of the deep freeze, but otherwise the space is empty, waiting. As I pass between the strips of thick plastic, the cold hits me. This is serious. Arctic. And it’s just one of several room-sized refrigerators and freezers in the building. “You must have a crazy electric bill,” I say to Chris Nemeth, president of Hopeful Harvest, the for-profit subsidiary of Forgotten Harvest that acts as an accelerator for food entrepreneurs. “You have no idea,” he says, shaking his head. The Oak Park facility is a hive of activity, with volunteers for Forgotten Harvest standing at long metal tables breaking down boxes of food for the nonprofit while a team from The Detroit Pop Shop prepares the base for their ice pops. I make a mental note to try the grapefruit habanero next time I see them at Eastern Market. It is just one of more than 30 local food brands that use Hopeful Harvest’s facility and small-business development services. They have access to enormous vegetable peelers — Nemeth has me put my hand inside and feel the rough sandpaper-liked surface that shreds off the skins — and a produce washer than can clean 70,000 pounds of veggies an hour. Rows of commercial ovens and industrial mixers of every size line the walls. It is everything an entrepreneur might need to get a food business growing. Some, like Detroit-based McClary Bros. Handcrafted Drinking Vinegars, hire Hopeful Harvest to manufacture their product; others, like Grosse Pointe-based Slow Jams, just rent space to work. Some need the deep freeze and dry storage facilities, while others avail themselves of business plan development and technical assistance. It’s a full-service, one-stop shop for getting food startups on the path to growth. And Nemeth’s

voicemail is packed daily with more small-business owners needing help, asking questions. “It’s exploding,” said Nemeth, his passion palpable. “We can’t keep up with demand. We’re going to have

“What is happening in downtown is great, but this is a way to get Detroit neighborhoods going again. Food is one of the ways metro Detroit is going to come back.” Chris Nemeth,Hopeful Harvest

to go to three shifts seven days a week.” The growth and demand is so intense that the Detroit Regional Chamber made “building a sustainable food economy” a panel discus-

sion at this year’s Mackinac Policy Conference. Here in Detroit, that conversation had been going on for several years, and the effects are culminating in one of the most cohesive entrepreneurial ecosystems in the region. There is support for the smallest business that is just percolating in someone’s kitchen as well as firms that are ready to take the step from small-batch production to mass manufacturing — and every point in between. There’s even an organization, Detroit Food Academy, that teaches high school students how to design food products and bring them to market. They all work together to create a direct pipeline from startup to the shelves of Michigan grocers — and beyond. Whole Foods Dave Zilko: Retail- opened its Miders will give state town Detroit locompanies “a shot.” cation, for example, with more than 125 local brands on the shelves. Nearly four dozen of them were from Detroit — and that figure is growing. “The retailers in Michigan are blessedly provincial,” said Dave Zilko, who as vice chairman of Ferndale-based Garden Fresh Gourmet LLC spends time mentoring other young food entrepreneurs. “They want regional foods; they want local foods. Retailers will give Michigan companies a shot.” The informal network is becoming such a strong business development tool, as informal as it is, that other cities are interested in modeling it. Nemeth and others are regularly asked to sit on panels and discuss the effect of collaboration, how to engage both large firms and small grass-roots organizations in the network, avoiding duplication of support services and acting as an economic development tool for the city. “What is happening in downtown is great, but this is a way to get

[AMY HAIMERL/CDB]

After an $8.5 million renovation, Shed 5 at Eastern Market, which includes a commercial kitchen, has opened as a site where food entrepreneurs can operate.

Detroit neighborhoods going again,” Nemeth said. “Food is one of the ways metro Detroit is going to come back.” Fermenting ideas At the nexus of this network is FoodLab Detroit, a 2-year-old nonprofit that offers classes and technical assistance to food entrepreneurs, whether they are working in home kitchens or state-of-the-art commercial kitchens. FoodLab was originally founded as an informal network of chefs and producers all sharing knowledge and information about everything from sourcing to city licensing. It formally incorporated as a nonprofit last year with 80 members; it has since almost doubled in size to 145 members. The logo is a badge of pride among food producers, a community of their own. “FoodLab is fantastic at organizSee Next Page

[EASTERN MARKET CORP.]

Dan Carmody, president of Eastern Market Corp., saw a need to help owners of small food businesses.

20150601-SUPP--0014,0015-RG1-CCI-CD_--

5/27/2015

12:08 PM

Page 2

CRAIN’S DETROIT BUSINESS // June 1, 2015

M15

OLICY CONFERENCE

From Previous Page

ing neighborhood-based food entrepreneurs that heretofore weren’t particularly well organized,” said Dan Carmody, president of Eastern Market Corp. Eastern Market has long been the space where food ideas fermented, where small-business owners got their first shot at customers. But as Carmody watched an explosion in the demand for not just local produce but local food products, he realized small businesses would need more assistance getting to the market and growing. He and FoodLab and several others began talking with the owners about their challenges. There was almost universal demand for access to affordable, reliable commercial kitchen space. Most kitchen space was either outside the city, causing transportation issues, too expensive or booked up.

Carmody was already incorporating plans for such as space into the renovation of Shed 5 in the market, but entrepreneurs needed help now. So he partnered with FoodLab to start Detroit Kitchen Connect. The goal was to find a few churches and community organizations that would let local startups use their kitchens during the off hours. Devita Davison, head of DKC and now chief cultivator at FoodLab, was able to convince Ss. Peter and Paul Orthodox Cathedral in southwest Detroit and Matrix Human Services in the Osborn neighborhood to open their doors. Since then, nearly 20 businesses have become licensed, more than half of which were women-owned. “The population of food entrepreneurs in Detroit had been higher income and less people of color prior to FoodLab’s work with Detroit Kitchen Connect,” Carmody said. “Getting those facilities open

in the neighborhoods made it more convenient for those who couldn’t grow their food-based business because they couldn’t access kitchens or the technical services around issues of permitting and licensing.” Part of the success of FoodLab is that Davison doesn’t see it as just a business development organization, incubator or accelerator. It’s a way of giving people the tools to change their lives. If they also open a business, so be it. She and the founder, Jess Daniel, who recently left to pursue her Ph.D., see food as a way of addressing issues of opportunity and inclusion in a field — entrepreneurship — that is mostly dominated by tech startups and men. “Food sits at the intersection of so many social justice issues,” Davison said. “If you can help people start their own business and help them grow and scale, they have enough money to feed families. “We tell people we are business advocates, but in reality we use food as an inspiration to touch on so many other issues. Food brings people together like no other sector can.” Having them sitting at that nexus creates a strong center for all of the other organizations, such as Hopeful Harvest, Garden Fresh’s mentor program and Michigan State University’s Product Center, to layer on services where they are needed. As companies come up through FoodLab, Davison is there cheering them on to the next step, helping them get connected to the right program, manufacturer or retailer. She is in their restaurants and workspaces taking photos and posting them to Instagram — always with #foodlabholla — showing the world what Detroit produces. Soon the will have even more options: In May, EMC opened Shed 5, including the commercial kitchen, after an $8.5 million renovation. Carmody even got Whole Foods to kick in for the project as a way of investing in local food producers. The grocer has also pushed a number of firms, including McClure’s Pickles, on to its shelves nationwide and offers expansion funding through its Local Producer Loan Program. “Detroit’s urban agriculture scene in one of the most progres-

“We tell people we are business advocates, but in reality we use food as an inspiration to touch on so many other issues. Food brings people together like no other sector can.” Devita Davison, Detroit Kitchen Connect

sive in the country, but we recognized an opportunity to help contribute to the value-added food economy of the city,” said Walter Robb, CEO of Whole Foods. And now Carmody is planning the Detroit Regional Food Accelerator, a $15 million project that will overhaul 105,000 square feet in the Eastern Market district. The accelerator will be anchored by a several “larger food enterprises,” Carmody said, as well as production spaces for those businesses that outgrow Detroit Kitchen Connect or EMC’s kitchen. “We are trying to build a support system that brings people along the path,” Carmody said. “We want to net more job creation and successful business formation. We’re seen as a national model in terms of the comprehensiveness.” Paying it forward The extensive local ecosystem for food businesses wasn’t in place when Dave Zilko first started in an unheated kitchen with a few marinades. Garden Fresh Gourmet may be a $100-million-a-year company today, but he and founder Jack

Aronson each struggled independently until they met and came together under the Garden Fresh banner. They started their first year with just $4.5 million in revenue and have since seen phenomenal growth, adding products and contract production along the way. As the company has prospered, Zilko and Aronson have made it a point to invest in the local food network. They mentor dozens of local startups, including Royal Oakbased Drought, which makes coldpressed juice, and Detroit-based Banza, which makes chickpea pasta, helping them with business plans, letting them bounce ideas around ideas, even advocating for them with state and local licensing officials. But he does so quietly. In fact, he gets emotional just talking about it. “If someone can make their way to us, Jack and I will give them an hour,” Zilko said. “With everything happening, it means the Jack Aronsons and Dave Zilkos of today don’t have to start in an unheated kitchen, they’ve got a professional licensed place where they can really take a shot. I think that’s really critical.” This spring, Garden Fresh and Eastern Market launched SEED, a formal program designed to move firms from small-batch production to large-scale manufacturing. The program, Startup Engine Entrepreneur Depot, offers lessons in topics such as how to scale a recipe for mass production, how to handle food safety issues, and how to test for shelf life. Zilko, who has more than 450 employees, wants to help grow the next firm like his. He wants to access Michigan’s long agricultural tradition and build more national brands. Already, food production is one of Michigan’s most prominent industries, generating $91.4 billion for the state, according to the Michigan Economic Development Corp. “The conditions have never been better for food entrepreneurs,” said Zilko. “The thing about local is that you can’t outsource local to Mexico or China. Local is local. So if you are a food entrepreneur, market forces are moving in your direction.” 䡲 Amy Haimerl: (313) 446-0416 Twitter: @haimerlad

[FORGOTTEN HARVEST]

A 3,000-square-foot commercial kitchen and production area at the Oak Park headquarters of Forgotten Harvest serves 25 Hopeful Harvest clients.

20150601-SUPP--0016-RG1-CCI-CD_--

5/27/2015

11:36 AM

Page 1

CRAIN’S DETROIT BUSINESS // June 1, 2015

M16

Rowe: Time to polish skilled trades image Mike Rowe, former host of the Discovery Channel’s popular “Dirty Jobs” show and currently the host of “Somebody’s Gotta Do It” on CNN, spoke to Crain’s Detroit Business reporter Kirk Pinho in advance of Rowe’s keynote address at the Mackinac Policy Conference about the skilled-trades gap in Michigan and beyond. By Kirk Pinho kpinho@crain.com

Are you an armchair QB, or an armchair CFO? Get a peek inside the business of sports when

Crain’s Detroit Business hosts a panel discussion with the top ﬁnancial executives from Detroit’s four major professional teams.

3OXV

July 23 7:30-10 a.m. The Henry, Dearborn AGENDA: • Breakfast and networking • CFO of the Year Awards • Panel discussion Register at crainsdetroit.com/events or call (313)446-0300

TITLE SPONSOR

PREMIER SPONSOR

MAJOR SPONSOR

IN PARTNERSHIP WITH

IT Innovation. Business Value.

IN COOPERATION WITH

Everyone from Gov. Rick Snyder on down knows that there is a shortage of people to fill skilledtrades positions in Michigan — jobs like carpenters, machinists, welders, plumbers, elevator repairmen, and electricians. A huge part of that is due to cultural stereotypes of those trades positions as “dirty jobs,” said TV host and skilledtrades advocate Mike Rowe. As the economy continues to become more knowledgeMike Rowe: based, many parRethink what “a ents and kids are good job” means. viewing careers in the skilled trades as being dead-end, low-paying and generally less respectable than a career, for example, in a STEM field. That’s dissuading people in their 20s and 30s from entering or continuing with those career paths. Add to that an aging population and we have a real problem on our hands. Data from Economic Modeling Specialists Int. shows that in 2012, 54.3 percent of the 140,200 skilledtrades workers in Michigan were over age 45. And, more then 19 percent of the state’s skilled trades workers were over 55 — three years ago. While a changing, evolving economy is a great thing, that doesn’t mean we don’t need people to fix our toilets or circuit breakers, or solder or install hardwood floors. Demand for those jobs always has been and always will be there, Rowe points out. Rowe, who has testified about skilled trades before committees in both chambers of Congress, said part of what’s needed to address the shortage in America is a blistering public relations campaign. “There were decades of portrayals of tradesmen not in an aspirational way,” he said. “But you don’t change the way a whole country feels about those jobs overnight. ... It takes decades. Most PR sucks. It sounds and feels fake, sounds like it’s managed by a big company or feels like it’s been focus-grouped. And we have become very adept at identifying bullshit.” Rowe noted the 1971 “Keep America Beautiful” anti-littering advertising campaign featuring Iron Eyes Cody crying. That, he said, also took

years to take foothold in the American psyche. (There was also the 1986 “Don’t Mess with Texas” campaign by the Texas Department of Transportation, which was also to reduce littering.) But Rowe’s not naive, he knows PR and branding aren’t the only things needed. Business plays a role, too. How that actually takes shape is something Rowe said he’ll leave to others to decide, but he did say a large, concerted and coordinated effort involving big business is needed. “If the goal is to get people to think differently about what a good job is in 2015 or differently about what a good education means in practical terms, some component of that is going to require a partnership, consortium and some really honest messages that can go on the air and counterbalance some of the other messages that have frankly changed the way we think about work,” he said. Rowe says there needs to be, in the heat of competition, the willingness for companies, large and small, to lay down their arms. Detroit automakers? Yes. They need to collaborate to help address their own shortages. So do competing Michigan companies in other industries, lawmakers and training institutions. They have to work together on this, Rowe said. It’s not unlike a cease-fire in the midst of war. Rowe, a former QVC host and opera singer (talk about a diverse resume), also has some amazing life experiences to bring to these conversations. What was the dirtiest job he ever worked for “Dirty Jobs”? There are about 20 he says he would never want to do again. Among them: Replacing lift pumps in a wastewater treatment plant and mining for opals in Australia. The most shocking? Castrating lambs with his teeth. What are the craziest things he ever sold on QVC? An infrared pain reliever, a negative ion generator, collectable dolls and even a “Katsak,” a crinkly sack made for amusing cats. Rowe jokes on his website that he “faked his way into the Baltimore Opera to get his union card and meet girls, both of which he accomplished during a performance of ‘Rigoletto.’ ” These days, in addition to his TV duties, he has philanthropic duties. In 2008, Rowe launched mikeroweWORKS , a website and public relations campaign designed to reinvigorate the skilled trades. He has also written and spoken extensively about the skills gap, offshore manufacturing and infrastructure decline. He is CEO of the mikeroweWORKS Foundation, which awards scholarships to students who have an aptitude for mastering a specific trade. 䡲 Kirk Pinho: (313) 446-0412 Twitter: @kirkpinhoCDB

20150601-SUPP--0017-RG1-CCI-CD_--

5/27/2015

11:38 AM

Page 1

CRAIN’S DETROIT BUSINESS // June 1, 2015

M17

MACKINAC POLICY CONFERENCE

New, renovated hotels update island’s summer look By Sherri Welch

New suites make Grand Hotel grander

swelch@crain.com

A new hotel and renovations to two of Mackinac Island’s venerable hotels will be visible to island visitors this summer. Mackinac Island’s Mission Point Resort is in the midst of a multimillion-dollar renovation under its new out-of-state owners. The expansive resort on the island’s southeast side, which changed hands in December, has already seen updates to its 259 rooms, Wi-Fi and television system, and lobby, dining and conference areas. Heading into next year, plans call for a larger, full-service spa in a new location at the resort and, by 2017, a new, expanded pool complex. On the southwestern side of the island, the new, upscale Waterfront Collection opened in mid-May, under the same ownership as the Bicycle Street Inn & Suites across the street. And new dormers visible on the rooftop of the Grand Hotel signal the beginning of new suites going in on its fourth floor. (See related story, this page.) “I think there is a whole spectrum of consumers out there, some (who) want lodging and their entire experience to be exactly what it’s been forever,” said Melanie Libby, co-owner of the Waterfront Collection and Bicycle Street Inn & Suites and owner of Mackinac Cycle. Others are looking for handicap accessibility and modern amenities, she said. “It is important that as an island we offer that spectrum to the travelers so we can hold (their) interest.” Local landmarks Dennert Ware, executive chairman of San Antonio, Texas-based CeloNova Biosciences Inc., and his wife, Suzanne, acquired Mission Point in December, about two years after purchasing the historic Silver Birch es, a three-story, lodge on the island’s northeast side. Their Dennert Ware: daughter Liz Took ownership in Ware is overseeDecember. ing its renovation and the construction of two additional cottages. The couple paid more than $25 million to purchase the two properties, Ware said. But he declined to say what they are investing to upgrade and renovate the two, other than to say the investment at each is “multimillion-dollar.” “It is a good investment and ... a chance to take a wonderful property that’s been being developed over the last (27) years ... to the next level.” Mission Point had just over $10 million in gross revenue in 2014, he said. A Kalamazoo native, Ware moved to Pennsylvania with his family as he entered the first grade. It wasn’t

[COURTESY MISSION POINT RESORT]

Mission Point Resort has updated its 259 rooms. Next up are a larger spa and an expanded pool complex.

until his adult years when he and his wife were living in Indiana that they first visited Mackinac Island. It was a trip they repeated after moving to San Antonio when Ware joined CeloNova. “If you live in the south, it’s quite warm in the summer. So coming north has a lot of advantages,” Ware, 73, said. About 90 percent of the visitors to the island are from Michigan, Illinois, Indiana, Ohio and Wisconsin, he said. But Texas is the sixth-highest state in visitors to Mackinac. As the couple visited the island, they became intrigued with its historical significance, including its early days as an Indian trading center and the role it played in the commercial development of the Midwest. That, coupled with his wife’s penchant for historical renovations — something she did with several houses in the historic district of Indianapolis in the mid-’80s and ’90s — and the relationship they’d forged with Mission Point’s previous owner, John Shufelt, culminated in their purchase of the resort. The move into the hospitality business on Mackinac Island is a departure from Ware’s longtime career working for large companies in the medical devices industry, Ware said. “It’s a totally different kind of thing to do. ... This is the first business I’ve owned,” he said. Property makeovers Renovations at the 18-acre resort began this past winter, with new WiFi and television systems and fresh paint and new furniture in the guest rooms, as needed. In the lobby, dining and conference center areas, the new owners added new lighting, decorations and artwork and renovated restrooms. At Silver Birches lodge and its two cottages, there were some complications to bring the property back online; it hasn’t operated as a lodge for 20 or more years, Ware said. “We had to go through a complicated zoning process,” Dennert Ware said, given that the zoning had changed when the property ceased to operate as a lodge. With the zoning and restoration plans approved, the project is mov-

ing along, he said. The top two stories of the three-story lodge have been removed so they can be reconstructed for safety. When complete, there will be nine rooms on the top two floors and the four rooms on the first floor will be converted to dining rooms. Renovations of two cottages on the property and new construction of two more are also part of the plan, Ware said. Those cottages will have two to three bedrooms each. Given that all of the construction materials must be delivered by horse cart, the project is complex and challenging, he said. “I would hope we’d have the lodge completed by the end of next season ... so maybe 2017 would be a good season to be up and running,” he said. Waterfront Collection Overlooking the Shepler’s ferry dock, the Waterfront Collection hotel opened in mid-May with 13 luxury rooms and views of Main Street and the harbor. It’s located across from the 36room Bicycle Street Inn, which Libby and her business partner, local developer Ira Green, opened two years ago after an $8 million investment. Green also owns the Lake View Hotel and Mackinac Island Bike Shop. After spending $1 million to acquire the land for the Waterfront Collection, they invested another $2.5 million to construct it, Libby said. The Waterfront Collection is an extension of the Bicycle Street Inn, which manages the hotel and its reservations, she said. The two have coordinated, outer appearances to match the island’s historic character. But inside, the new hotel, like its sister site across the street, offers “top-shelf amenities,” including 42inch flat-screens, high-speed Wi-Fi, and silent air conditioning and heat, Libby said. Next up for Libby and Green is a restaurant on the Arnold Line dock. The developers are investing several million to renovate the existing building on the dock into the Main Street Café, Libby said. 䡲 Sherri Welch: (313) 446-1694 Twitter: @SherriWelch

The Grand Hotel has added two suites adjacent to the premium one-bedroom “Musser Suite,” which opened on the west end of the fourth floor last summer. The suite is named after the late former chairman of the hotel, R.D. Musser. The suites, which include one or two bedrooms and a parlor, bring the total number of rooms at the hotel to 390. They are part of an ongoing multimillion-dollar investment that will add additional fourth-floor rooms and suites over the next two winters, the hotel said. The Grand has added five rooms along its west end since 2013 and plans to add up to 10 more “cupola suites” along the east end on the fourth floor over the next two years. The hotel’s original architecture included dormers, but they were removed to make the third-floor

guest rooms larger and create fourth-floor attic space. When the current renovations are completed, the Grand Hotel’s roofline will look very similar to when it first opened in 1887, hotel President R.D. “Dan” Musser III said in a statement. The new rooms are in keeping with the hotel’s goal “of maintaining a sense of continuity and timelessness at Grand Hotel, while at the same time adjusting to changes in the world around us by making improvements and adding amenities for guests to enjoy,” he said. As part of the project, the hotel has also added flat-screen TVs in more than 100 rooms, put sculptured flower beds in the Tea Garden and reconfigured a stream next to the No. 7 fairway on the Grand Nine portion of The Jewel golf course. 䡲

CHOICE. ACHIEVEMENT. RESURGENCE. Grand Valley State University is developing the talent and resources to help re-energize Detroit. As the authorizer of 38 charter schools in southeast Michigan, we provide high quality K-12 options for more than 32,000 students. When we say we’re committed to academic achievement in our charter schools, we can prove it: Grand Valley is the ﬁrst charter school authorizer in

the nation to be recommended for AdvancEd accreditation of our authorizing practice.

Grand Valley’s Detroit Center at 163 Madison Avenue supports our charter school staff and our small business support services, which helps new and existing small businesses to succeed, creating jobs and economic stability here in Detroit. We also offer seven master’s degree programs to our charter school teachers in Detroit as well as over 100 specialized training sessions for teachers, charter school staff, and school board members. Visit us online at gvsu.edu/cso or call (616) 331-2240 to learn more about how Grand Valley State University is helping to shape a resurgent Detroit. Grand Valley’s Charter Schools Office located at 163 Madison in downtown Detroit.

gvsu.edu/cso

DBpageAD_DBpageAD.qxd 5/22/2015 10:22 AM Page 1

THERE’S STILL TIME Make a difference in a teen’s life Thank you to the employers who helped us reach our goal of 5,000 summer jobs.

FUNDERS DTE Energy Foundation JP Morgan Chase Foundation W.K. Kellogg Foundation The Skillman Foundation Marjorie S. Fisher Fund Bank of America Foundation Fifth Third Bank The John S. and James L. Knight Foundation Wayne Metropolitan Community Action Agency

DETROIT EMPLOYERS: Grow Detroit’s Young Talent is a 6-week summer youth employment program that has been re-tooled to ensure PRE-SCREENING and ONTHE-JOB support for teens and employers. Mayor Mike Duggan invites you to help Detroiters, ages 14-24, get ready for the workforce through a summer immersion. We’ve had a great response, but need help placing the more than 11,000 teens who applied for summer employment. It’s easy to get started.

Become an employer partner and receive a part-time student worker for up to 20 hours a week for six weeks. GDYT offers a 50/50 compensation split, for up to $1,000 and completes all recruitment and payroll paperwork!

Sponsor a full work experience through a $2,000 Pledge to GDYT. GDYT will manage student recruitment, payroll, work readiness training and match the young person to the right job opportunity.

Contribute to GDYT by directly hiring a City of Detroit youth. GDYT provides the options of helping you recruit and screen summer hires and offers employment support services, free of charge.

PARTICIPATING EMPLOYERS 1917 American Bistro 1xRun/Inner State Gallery Access Computer Technology ACCESS Addison Eatery A Diva’s Everything, LLC Advantage Health Centers AEL-Span, LLCC Alanis Restaurant Group Allen Temple CME Alta Equipment Company Apostle Way Church of God Avis Ford Bank of America Banner Super Market Battery Giant BBEK Environmental Beaumont Health Systems, Grosse Pointe Beaumont Health Systems, Home Services Beaumont Health Systems, Royal Oak Beaumont Health Systems, Troy Belfor Property Restoration Bodman PLC Blue Cross Blue Shield of Michigan Bridgewater Interiors Brinks Gilson & Lione Build Institute Building Hugger Busted Bra Shop Canine To Five ChemicoMays LLC City Carpet & Flooring Comerica Bank Community Alliance Solutions Community Development Advocates of Detroit Computech Corporation Consumer’s Energy Corporation for Artistic Development Crain’s Detroit Business Crowne Plaza - MCM Staffing CVS Health Cyberobtix Tie Lab Detroit Experience Factory Detroit Historical Museum Detroit House of Judah Detroit Manufacturing Systems, LLC Detroit Metro Convention & Visitors Bureau Detroit RiverFront Conservancy Detroit Windsor Tunnel/American Roads Detroit Zoological Society Dickinson Wright PLLC DiClemente Siegel Design DigitasLBI DMC Group Inc Downtown Detroit Partnership Dykema Gossett EDW C Levy Co. Eight Mile Boulevard Association Ellis Infinity Emmanuel House Emerging Industries Training Institute Entrepreneur Works Ernst & Young Ferndale Electric Company Fifth Third Bank Ford Motor Company Franco Public Relations Group FutureNet Group, Inc. Galax E. Solutions General Motors Corporation Good Cakes and Bakes, LLC Gonzales Group Greater Love Tabernacle C.O.G.I.C Greening of Detroit Hamilton Anderson Associates Hartford Memorial Church Heat and Warmth Fund

Make an impact - Hire at GDYT.org Grow Detroit’s Young Talent is a City of Detroit-endorsed program operated by the nonprofit organization City Connect Detroit. For questions, contact youthjobs@cityconnectdetroit.org.

Henry Ford Health Systems Heritage Optical Hot Taco House of Help Community Center HR - 1/Detroit International Bridge Company Human Fliers/Detroit Community Engagement Ideal Group Illitch Holdings Infused PR Lafayette Towers Leland M.B.C Lewis & Munday LGBT Detroit Liberty Tax Service Lochbridge Love Travels Imports Magna International Mannik & Smith Marathon Petroleum Matrix Theatre Company Maxwell Dunn Law McConnell Communications, Inc. McDonalds Metro Life Church/ Good News Gang 1Michigan Association of CPAs Michigan Non-Profit Association Michigan Veterans Foundation Miller Canfield MLH Consultants LLC MLive Media Group Motor City Electric Co MyLocker.com, LLC Neumann/Smith Architecture New Center Stamping N’Namdi Center Northeast Guidance Center NPowered TV Obrien Edwards P and A Scholars Beauty School Pellerito Foods Inc Phiaria Insurance Group (Anistia Thomas Agency) Phifer & White Piston Group Automotive LLC Pontiac Ceiling & Partition Co., LLC Presbyterian Villages of Michigan Prestige Automotive LLC Pricewatehouse Coopers (PwC) Public Lighting Authority Quicken Loans Rosetti Secure-24 Set Free Fellowship Church Shoreline East Condominium Association Skidmore Studio Smith Wilson Group, Inc. Southeast Michigan Council of Governments Starr Vista, Inc. State Farm Insurance Agency Strategic Staffing Solutions Studio Too Talmer Bank and Trust Teach For America Tech Town Detroit The Allen Law Group, PC The Bing Youth Institute The Black Dress Co. The Career Leaders The Kid Network Daycare The Prewitt Group The Skillman Foundation Town Services Tranquil Elegance by Danyael Unique Expressions United Way for Southeastern Michigan University Detroit Mercy University of Detroit Mercy School of Law University of Michigan Detroit Center Vision Computer Solutions Visteon Corp. Walsh College Walsh Construction Wayne County Airport Authority Whole Foods Market WDIV-TV Woodhouse Day Spa Zara Creative Zarkpa’s Purses & Accessories

DBpageAD_DBpageAD.qxd 5/12/2015 3:08 PM Page 1

How do we build a healthier Michigan?

One kid at a time. OUR CHALLENGE: The obesity rate in Michigan is 31 percent. Since 1990, it’s more than doubled for adults. It has tripled for children. Today, nearly 1 in 3 Michigan kids, ages 10–17, is statistically overweight. THE IMPACT: In 2018, the projected increase in obesity-related health care spending in Michigan will be $1,578 per obese adult. OUR SOLUTION: Build healthy habits in our kids today, so they can build healthy communities in Michigan tomorrow. Habits — healthy and unhealthy ones — are formed early in life. This is why, since 2009, Blue Cross has invested more than $6 million in programs with elementary and middle schools to teach kids healthy habits — simple things like how fun it is to play for 60 minutes a day and that many healthy foods actually taste pretty good. Our Building Healthy Communities program has touched the lives of more than 100,000 Michigan kids. And we’re just getting started. Our partnership now includes the Michigan Department of Community Health along with the Michigan Fitness Foundation, United Dairy Industry of Michigan, University of Michigan and Wayne State University’s Center for School Health. Together, we will improve lives and lower health care costs for future generations of Michiganders. A CROSS. A SHIELD. A PROMISE TO MAKE A DIFFERENCE. LEARN MORE AT MIBLUESPERSPECTIVES.COM Blue Cross Blue Shield of Michigan and Blue Care Network are nonproﬁt corporations and independent licensees of the Blue Cross and Blue Shield Association.

20150601-SUPP--0021-RG1-CCI-CD_--

5/26/2015

5:20 PM

Page 1

CRAIN’S DETROIT BUSINESS // June 1, 2015

M21

20 IN THEIR 20S his year, Crain’s inducts our 10th class of 20 in their 20s winners. These up-and-coming entrepreneurs, corporate executives and nonprofit visionaries are impressive in the achievements and passion they bring to Southeast Michigan.

In the past nine years, Crain’s has honored 180 leaders for their success at a young age. Nearly 90 percent of them continue to live and work in Michigan. That’s pretty impressive – and shows great promise for the future. Turn to Page 32 to find out where some of them are now. Want to know more about this year’s winners? crainsdetroit.com/20s.

2015 HONOREES David Anderson, co-founder, Bamboo Detroit, this page Katy Cockrel, director, strategic communications,

Rachel Klegon, executive director, Green Living Science, Page 26

Ignition Media Group, this page

Rishie Modi, owner and president, Modi Financial LLC, Page 27

Elisabeth D’Arcy, manager of revenue cycle integration, HealthRise Solutions, Page 22

Nailah Ellis-Brown, founder and CEO, Ellis Infinity LLC, Page 22 Sheri Gordon, senior analyst, government relations, General Dynamics Land Systems, Page 22

Niles Heron, co-founder, Michigan Funders, Page 22 Adam Hollier, vice president, Hantz Farms, Page 25

Join us on June 29 to celebrate this year’s class of 20s.

Marc Hudson, CEO and co-founder, Rocket Fiber LLC, Page 25 Reda Jaber, partner, IncWell LLC, Page 25

Upstairs at HopCat Detroit at 5 p.m. For ticket info: crainsdetroit.com/events.

Noam Kimelman, co-owner, Fresh Corner Cafe, Page 26

Garret Koehler, organizer, Assemble Sound, Page 27 Kelly Perez-Vergara, director of academic effectiveness, Oakland Community College, Page 28 Alison Piech, major gifts officer,Detroit Institute of Arts, Page 28 Denise Sampson, associate engineer, DTE Energy Co., Page 30 Max Schmidt, co-founder, 1701 Bespoke LLC, Page 30 Zack Sklar, owner, Peas & Carrots Hospitality, Page 30 Shannon Smith, analyst, Federal Reserve Bank of ChicagoDetroit Branch, Page 31

DeAnte Thompkins, workforce development technician, Michigan Department of Transportation, Page 31

KATY Cockrel, 29 Director, strategic communications Ignition Media Group

DAVID Anderson, 28 Co-founder Bamboo Detroit

avid Anderson was helping his niece with a research report on pandas when he read that bamboo is the fastest-growing, strongest plant in the world. So when he and several partners decided to start a co-working space in downtown Detroit, he already had a name: Bamboo Detroit . “Our tagline is: ‘Grow fast. Grow strong.’ That’s what we want to instill in our businesses,” Anderson said. “We want all of our businesses to grow fast and strong like bamboo.” Since its launch in August 2013, Bamboo Detroit has grown from 15 to 86 members representing a range of industries, from real estate to photography. In fact, when Anderson and partners realized how much talent was housed in Bamboo, they launched a marketing firm, Bamboo Imagine, that could serve members and outside clients. “We kind of realized that we have the

ON: boo WHY HE W son built Bam

David Ander ing a fast-grow Detroit into s own it space with co-working ow n is ency that creative ag ther growth of o e fueling th rs. entrepreneu

makeup of what a creative agency has,” Anderson said. “So why not create an agency that is for our members and by our members?” In the coming year, Anderson is looking at ways to grow Bamboo and support more entrepreneurs. “We actually coined the phrase, ‘Detroit is for doers,’ ” he said. “If you don’t like something, change it.” — Emell Adolphus

hen Bates Academy won a citywide attendance challenge in 2014, Katy Cockrel and a small team from Detroit-based Ignition Media Group had two weeks to get the Detroit Public Schools building in shape for a visit from rapper Big Sean — including installing temporary air conditioning. But the out-of-state events company that Viacom normally used to produce the event, which it sponsors along with the national nonprofit Get Schooled and DPS, was unavailable. So they turned to Cockrel, who recently had added the media giant to her client roster. “It was a great win for us, but we had only two weeks,” she said. “The timing was a huge challenge. We had our work cut out for us.” The event was a success, garnering national media attention and showcasing Cockrel’s work building up a public relations practice as part of Ignition. Cockrel joined the firm in 2011 after Dennis Archer Jr., son of the former Detroit mayor, persuaded her to leave her job at the Detroit Regional Chamber. Today, she has two full-time reps and a client roster of 15, including Chrysler Group LLC, Ford Motor Co. and General Motors Co. “I took a bit of a risk leaving the chamber, with a 401(k) and a bit of a salary,” said Cockrel, the daughter of two Detroit heavyweights: Sheila Cockrel, a Detroit City Council member from 1994 to 2009,

WON: WHY SHEl h as a famous

Katy Cockre she made but last name, ing a th by build a p n w o her tions la re public successful edia m g n ri d sco practice an t. m as a clien giant Viaco

and Ken Cockrel Sr., an attorney and council member who died in 1989. “It’s obviously paid off.” — Bill Shea

20150601-SUPP--0022,0023-RG1-CCI-CD_--

5/26/2015

5:02 PM

Page 1

CRAINâ&#x20AC;&#x2122;S DETROIT BUSINESS // June 1, 2015

M22

20 IN THEIR 20S

ELISABETH

NAILAH

Dâ&#x20AC;&#x2122;Arcy, 29

Ellis-Brown, 27

Manager of revenue cycle integration HealthRise Solutions

Founder and CEO Ellis Infinity LLC

â&#x20AC;&#x153;I

knew health care could change the lives of people,â&#x20AC;? said Elisabeth Dâ&#x20AC;&#x2122;Arcy, who received an MBA in health care from George Washington University in 2013. â&#x20AC;&#x153;I considered becoming a doctor or nurse and took pre-med classes, but I realized finance and administrative work was where I was best suited.â&#x20AC;? Now, as manager of revenue cycle integration at Southfieldbased HealthRise Solutions, Dâ&#x20AC;&#x2122;Arcy helps the new Beaumont Health, an eight-hospital system based in Troy, develop a unified approach to revenue cycle operations. â&#x20AC;&#x153;We want to make sure everyone has an equal voice at the table in creating financial sustainability for the organization,â&#x20AC;? Dâ&#x20AC;&#x2122;Arcy said. Last year, Dâ&#x20AC;&#x2122;Arcy helped secure a new contract that accounts for a significant percentage of the young firmâ&#x20AC;&#x2122;s revenue. She also helped

WON: WHY SHE d â&#x20AC;&#x2122;Arcy wante Elisabeth D r but to be a docto eople by ps p instead hel s edical cost m g in c u red e g with th and workin nce of ia ll A Autism Michigan.

ix years ago, Nailah EllisBrown lived in her motherâ&#x20AC;&#x2122;s basement and sold hibiscus tea from the trunk of her car. She started Ellis Infinity after realizing she could spend time and money to pursue her entrepreneurial dream instead of on the business degree she never finished at Howard University. Now, Ellis-Brown sells Ellis Island Tropical Tea, which she brews and bottles in a 4,000square-foot plant she opened last year in Detroit. A silent partner paid for the $150,000 bottling

SHERI Gordon, 28

HealthRise launch a consulting branch that focuses on helping health care organizations improve revenue flow. â&#x20AC;&#x153;She is a brilliant overachiever,â&#x20AC;? said David Farbman, founder and CEO of HealthRise. Working with hospital clients, Dâ&#x20AC;&#x2122;Arcy said, HealthRise consultants help clients create a new culture and leverage best practices within the organization.

Senior analyst, government relations General Dynamics Land Systems Inc.

ix days after she graduated from Oakland University and a month before she was expecting to

â&#x20AC;&#x201D; Jay Greene

H W D U E H O &H

ON: WHY SHE W e rown has gon Nailah Ellis-B tea out of her from selling n ding a moder trunk to buil is ll t to grow E bottling plan Infinity.

on a Jamaican family recipe, is now distributed in 20 Whole Foods Markets locations as well as Buschâ&#x20AC;&#x2122;s Fresh Food Market and specialty retailers. â&#x20AC;&#x153;I really think her potential is unlimited,â&#x20AC;? said Ken Harris, president of the Michigan Black Chamber of Commerce.

operation, allowing her now to think about growth. She employs three parttime workers and expects to hire several more soon. â&#x20AC;&#x153;My first priority is getting a team together, then weâ&#x20AC;&#x2122;ll take off,â&#x20AC;? Ellis-Brown said. She wants Ellis Infinity to grow into â&#x20AC;&#x153;an empireâ&#x20AC;? with nationwide distribution and 100 full-time employees. Although revenue is still small â&#x20AC;&#x201D; $100,000 annually for the past six years â&#x20AC;&#x201D; Ellis-Brown is seeing large growth in distribution. The tea, based

start her job, Sheri Gordon flew to Fort Knox in Kentucky to represent her new employer, General Dynamics Land Systems, at a trade show. She jumped in for a longtime employee who left unexpectedly. â&#x20AC;&#x153;I was the only young female there,â&#x20AC;? she recalled, and yet she talked tanks and combat vehicles to military managers and young soldiers. The lesson: â&#x20AC;&#x153;Always accept the call-up,â&#x20AC;? even on an unfamiliar assignment. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m someone who craves knowledge,â&#x20AC;? she said. That makes her comfortable asking questions and determining who knows whom â&#x20AC;&#x201D; at the Pentagon or within Sterling Heights-based General Dynamics. She started at the defense contractor as an intern in 2010 and stayed on part time as she studied marketing and business. Gordon, who is the first in her family to

â&#x20AC;&#x201D; Vickie Elmer

graduate from college, earned both an MBA and yoga instruction credentials two years later. In five years, sheâ&#x20AC;&#x2122;s held four jobs in business

NILES Heron, 28 Co-founder and chief business development officer, Michigan Funders TITLE SPONSOR

This year marks the 10th class of Twenty in their 20s â&#x20AC;&#x201D; local up-and-coming business people who are in their 20s. Join us to celebrate the accomplishments of the best and the brightest in Southeast Michigan.

-XQH S P RS&DW 'HWURLW +

TICKETS: Individual Ticket: $50 Groups of 10+: $45 each 20s Alumni: $40

t took Niles Heron living out West to realize he belonged in Detroit. Heâ&#x20AC;&#x2122;d moved to Los Angeles at age 20 after landing a job in California with Southfield-based ChemicoMays. â&#x20AC;&#x153;I loved the company culture, and I loved the growing opportunities they were able to provide me,â&#x20AC;? he said. But the longer he was gone, the more he wanted to come back home. â&#x20AC;&#x153;I was always very sure that I was not going to be here,â&#x20AC;? Heron said. â&#x20AC;&#x153;I think by the time I was 13 or 14, I knew I was not staying in Detroit.

20150601-SUPP--0022,0023-RG1-CCI-CD_--

5/26/2015

5:02 PM

Page 2

CRAIN’S DETROIT BUSINESS // June 1, 2015

20 IN THEIR 20S

ON: WHY SHE W y rose from

kl Gordon quic ior analyst in n se intern to d now talks five years an e Pentagon tanks with th embers. and service m

development and government relations at General Dynamics, where she

does “a lot of writing and a lot of educating” about General Dynamics’ products to Congress, local politicians and staff. “She has an anticipatory mind” and is “professionally astute and personally involved,” Michael Peck, General Dynamics’ director of business development in Sterling Heights, said of Gordon. This means she knows and texts his granddaughters and many Pentagon staffers. “She’s got the talent” to rise to the corner office, Peck said. — Vickie Elmer

“ What I didn’t anticipate in that move was how much I would want to come home. Once Detroit started turning, though, I thought I could come home.” In 2013, he finally did. When he returned, Heron and a childhood friend had an idea to build an equity crowdfunding platform that would take advantage of new legislation and help smallbusiness owners raise money. In February, they launched Michigan Funders.

ON: WHY HE W funding is

d Equity crow stry, and the hot indu started a on Niles Her l bring it to al company to d an ts en d Michigan resi businesses.

MichiganFunders.com is one of the only sites in the country that serves both high-wealth investors and neighbors who want to help a local business grow. “We often talk about it as being equity crowdfunding, but I like to think of it as community-based investing,” Heron said. — Emell Adolphus

SHE BRINGS GREAT ENERGY TO EVERYTHING. Congratulations on being named to Crain’s 2015 “20 in their 20s” Denise Sampson (MBA Student) Associate Engineer, DTE Energy

M23

DBpageAD_DBpageAD.qxd 5/27/2015 9:23 AM Page 1

At United Shore, we’re changing the game. Home to one of the country’s top wholesale lenders, UWM, our 1,100+ mortgage experts strive to create a more perfect mortgage world with unparalled service, great products and a unique company culture, where we have serious fun. That’s why we’ve been recognized as the #1 Place To Work in Metro Detroit. If that sounds good to you, maybe it’s time you were Younited. Congratulations to Crain’s 20 in their 20s Class of 2015 winners!

20150601-SUPP--0025-RG1-CCI-CD_--

5/26/2015

4:45 PM

Page 1

CRAIN’S DETROIT BUSINESS // June 1, 2015

M25

20 IN THEIR 20S

ADAM Hollier, 29 Vice president Hantz Farms

commitment to service has always driven Adam Hollier. “It’s kind of in my DNA,” he said. “My dad was a firefighter; my mom was a social worker. And they taught me that when you can do, you should do.” Hollier has spent most of his career in the public sector since graduating from Cornell University with a bachelor’s degree and the University of Michigan with a master’s in urban planning. He was chief of staff to state Sen. Bert Johnson and then liaison to the Detroit City Council for former Detroit Mayor Dave Bing.

MARC Hudson, 28 CEO, co-founder Rocket Fiber LLC

arc Hudson loves the energy in downtown Detroit, an energy that has kept him in Michigan. But it was, he thought, an energy that needed modern technology to be effective — namely, highspeed, gigabit Internet access. In January 2013, Hudson, then an engineer at Quicken Loans, submitted the idea through the company website. But, he said, “it seemed too grandiose for some to move forward.” And so he sent several emails

directly to Dan Gilbert, suggesting he ought to add another business to his Rock Ventures family of companies. “I saw firsthand what gigabit fiberoptic Internet networks have done in cities like Chattanooga (Tenn.) and Kansas City and wanted to bring the same to our hometown,” Hudson said.

Hollier is now vice president of Hantz Farms, an effort by Hantz Group CEO John Hantz to plant the nation’s largest urban tree farm on 15 acres on the city’s lower east side. It has been a controversial project because the farm sits on 150 acres that Hantz purchased last year from then-Emergency Manager Kevyn Orr. But Hollier still sees his work as service to the community. Last year, for example, he organized 1,300 volunteers to plant 15,000 saplings

N: WHY HE WhO as held

Adam Hollier political high-profile cluding positions, in ing’s liaison B e Mayor Dav y Council, to Detroit Cit s the Hantz and now lead . ct Farms proje

in one morning. “This might not be everyone’s favorite idea, but it is a project that is not using public money and that makes a difference every day,” Hollier said. “We are cutting the grass every seven to 10 days. We’ve planted 2,500 trees. We have changed the way the neighborhood looks because it is clear of brush and debris. It’s a $5 million investment in a neighborhood that hadn’t seen investment in years.” — Amy Haimerl

ON: WHY HE Wan d his

n Marc Hudso ted Rocket partners star g ultrafast Fiber to brin ss to Internet acce roit and et downtown D ond. ey b eventually

Gilbert didn’t just respond, he responded eagerly, and Rocket Fiber LLC was officially launched in June 2014. Gilbert and Rock Ventures internally financed the $30 million cost of the first phase, which includes the underground installation of 5.5 miles of fiberoptic cable throughout the central business district. — Tom Henderson

REDA JABER,28 Partner IncWell LLC

iming was everything for Reda Jaber. He was finishing his M.D. last year and had a 9 p.m. deadline to submit his preferred list of residencies. He was about to hit the “send” button when, at 8:45, Simon Boag, a director at Birmingham-based IncWell LLC, called Jaber to

offer him a job heading its investments in health care and medical devices. It was a perfect fit for Jaber, an academic overachiever who already had an MBA and a master’s degree in science and clinical research. Plus, he already knew Boag and IncWell founder Tom LaSorda from an internship at their previous investment firm, Stage

ON: WHY HE Was named a w Reda Jaber cWell, the In t a er partn en v ture early stage founded by capital firm sler Group former Chry rda. aSo CEO Tom L

Two Innovations. This would be a chance for Jaber to put his business and medical mind to work in finding deals for IncWell, which raised its second fund of almost $10 million last year. So far, it has invested in 29 startups. “I love working here,” Jaber said. “The future of medicine is changing. We see the ideas at an early stage, and it’s fun to be a part of.” — Tom Henderson

20150601-SUPP--0026,0027-RG1-CCI-CD_--

5/26/2015

4:48 PM

Page 1

CRAIN’S DETROIT BUSINESS // June 1, 2015

M26

20 IN THEIR 20S

ON: WHY HE W man brings Noam Kimel Detroit’s fresh food to d s an party store s to be teaches kid rs. eu n entrepre

NOAM KIMELMAN, 28 Co-owner Fresh Corner Cafe

oam Kimelman discovered how much of an impact healthy eating could have while in high school. “I went from eating unhealthy to eating healthier. I saw the difference it made to help me feel good and achieve my goals,” Kimelman said. It inspired him to get a master’s

degree in public health management at the University of Michigan and then launch Fresh Corner Cafe to bring healthy food to Detroit’s party stores. “It’s really all about choice and the power to eat healthy, to have control over your diet and your life,” he said. When he started, Kimelman cut

and packed all the vegetables himself, delivering to more than 35 stores around the city. Now he has a team of 12 working with him at Detroit-based Fresh Corner Cafe and at the Detroit Food Academy. The nonprofit, which he co-founded, teaches Detroit young people the business skills they need to be entrepreneurs. “Noam is a great part of our city’s future,” said Chris Uhl, vice president of social innovation at the Detroit-based Skillman Foundation. “He’s a perfect example of the new breed of entrepreneurs that are thinking holistically about the businesses they are growing and the impact of those businesses on the community.” — Amanda Lewan

“Our state has been through some difficult times the last few years, and there were moments when I worried we wouldn’t make it. My CPA played a major role in keeping our doors open and our business afloat. Now we’re doing better than I could have imagined. In fact, our second location opens in a few weeks.”

With a commitment to excellence, Michigan’s &eUtiÀeG 3XElic $ccoXntants aUe tUXsteG anG SUoYiGe UesXlts IoU EXsiness oZneUs SeoSle liNe \oX, acUoss the state Visit micpa.org to leaUn moUe oU to ÀnG a &3$ Zho’s Eest IoU \oX

RACHEL Klegon, 29 Executive director Green Living Science

s executive director of Green Living Science, Rachel Klegon uses art and science to teach kids — and adults — the importance of recycling and building sustainable communities. “Recycling is the first and easiest step to take toward creating habits and making decisions about our environment,” Klegon said. The organization has served more than 40,000 students and works in more than 40 Detroit schools. “I have the freedom to try new things and take risks,” Klegon said. “We get to help create and see real change happening here every day.” Last year, Klegon also worked with the Detroit Department of Public Works and other organizations to implement the first citywide curbside recycling program. “It is not easy to create an entirely

ON: WHY SHEnW and

Rachel Klego g Science Green Livin a culture of g are buildin Detroit one recycling in ent and student, par a time. business at

new infrastructure in a major city, but it is working here in Detroit and all through a community-based, grass-roots effort,” Klegon said. “We have come a long way.” — Amanda Lewan

20150601-SUPP--0026,0027-RG1-CCI-CD_--

5/26/2015

4:48 PM

Page 2

CRAIN’S DETROIT BUSINESS // June 1, 2015

M27

20 IN THEIR 20S

GARRET Koehler, 28 Organizer Assemble Sound

hen we first met Garret Koehler, he was half of a duo working to presuade ESPN to bring the X Games to Detroit. He and partner Kevin Krease raised $30 million in pledges, but ESPN still sent the games to Austin, Texas. Instead of folding the tent, Koehler and Krease took the momentum and launched Assemble to host conversations about the future of Detroit. “I just sort of activated around this core question: ‘Hey, we all know Detroit is rebuilding itself, but what are we trying to build?’ ” Koehler said. Last year, Assemble hosted an alternative Mackinac Policy Conference on a field up north and a series on urbanism at the Detroit Symphony

RISHIE

N: WHY HE WrO tried to

le Garret Koeh ames to G X bring the now is d an Detroit orking -w co a g in d buil it ro et studio for D s. musician

Orchestra. But Koehler realized the concept was too broad to be sustainable. Instead, he wanted to focus on connecting Detroit’s fragmented music scene and has relaunched Assemble as Assemble Sound. “We have an underlying belief that place-based creative collaboration and economic cooperation can be the foundation of success for musicians and the local music ecosystem they represent,” Koehler said. To do that, he recently purchased a church in Corktown and is developing it into a recording studio, community space and coworking studio for musicians. — Amy Haimerl

Modi, 29 Owner and president/principal Modi Financial LLC/ 360 Risk Management Inc.

ishie Modi started his benefits consulting firm as an opportunity to show originality and initiative. He found that chance, of all places, in municipal government. Modi, who left a position at Massachusetts Mutual Life Insurance Co. to launch what is now Modi Financial LLC in Northville, landed an early success for his company in the city of Highland Park starting in 2012. Modi was able to move city employees to a health maintenance organization. As a result, the city expects health care premiums to fall more than 11 percent in the coming fiscal year. From there, Modi advised Benton Harbor while current Wayne County Chief Restructuring Officer Tony Saunders was the state-appointed emergency manager in that city. Now he has

ON: WHY HE W is crafting i od M ie Rish lth plan proposed hea could save at changes th ty more than Wayne Coun $30 million.

followed Saunders to become a consultant with Wayne County. “I don’t think anything we’ve accomplished in the past three cities would have happened without him,” Saunders said. “I’m a

big fan. He’s a very bright young guy.” Modi’s proposed modification to traditional health plans could save Wayne County more than $6 million on its share of premium costs for active employees. The county also hopes to save $26 million or more on retiree costs under a separate set of changes. — Chad Halcom

• Data Center Solutions • Uniﬁed Communications • Contact Center Services

20150601-SUPP--0028,0029-RG1-CCI-CD_--

M28

5/26/2015

5:04 PM

Page 1

CRAIN’S DETROIT BUSINESS // June 1, 2015

20 IN THEIR 20S

KELLY Perez-Vergara, 27 Director of academic effectiveness Oakland Community College

elly Perez-Vergara is on the front line of higher education reform at Oakland Community College. The graduate of Oakland University and the University of Michigan has helped upend OCC’s degree program offerings since

WON: WHY SHE ga ra is

er Kelly Perez-V land ak O g reshapin ollege’s C y it n u Comm align with curriculum to eeds and n ic om local econ udents. st e rv se r to bette

starting at the state’s largest community college in September 2012. To better align the school’s offerings with the local economic need, she recommended that 60 programs be cut and an additional 65 adjust their course scheduling so students can graduate faster.

She does all of that based on local economic data — and without affecting full-time faculty. “There are lot of people who are innovators, who are creative, who are deep thinkers, all of which Kelly is,” said Tim Meyer, chancellor at OCC. “But more importantly, she is an effective communicator. She is so important to organizational alignment.” Now that many of the plans for cleaning up OCC’s curriculum are being implemented by deans, Perez-Vergara can turn her focus toward two other key issues in higher education: credit transferability and technology. — Kirk Pinho

“HOW IS DTE ENERGY COMMITTED TO MICHIGAN’S FUTURE?” Michigan is a comeback state, and DTE Energy and our 10,000 employees are doing all we can to serve customers and help Michigan, the city of Detroit, and all of our communities thrive. We’re investing heavily to upgrade our infrastructure and improve customer satisfaction. In fact, as a partner in the Pure Michigan Business Connect Initiative, we have grown our annual spending with Michigan companies from $475 million in 2010 to over $900 million in 2014. And through the DTE Energy Foundation and our employee volunteers, we support the development of the communities in which we live and work. DTE Energy has a responsibility to the state of Michigan, and we’re proud to give back.

ALISON Piech, 29 Major gifts officer Detroit Institute of Arts

n the face of uncertainty about the Detroit Institute of Arts’ future during the Detroit bankruptcy, Alison Piech pushed forward, communicating clearly and regularly with donors about the museum’s legacy and the urgency of a successful endowment campaign. Her dedication paid off this year with a $1 million endowment gift to the DIA from a family who wished to remain unidentified. In just 18 months at the museum, Piech also has raised $75,000 for education programs from groups such as the Detroit Public Schools Foundation and Mercedes-Benz Financial Services. In addition, Piech serves as development liaison for two auxiliaries — the Friends of African and African American Art and the Friends of Modern and

20150601-SUPP--0028,0029-RG1-CCI-CD_--

5/26/2015

5:04 PM

Page 2

CRAIN’S DETROIT BUSINESS // June 1, 2015

20 IN THEIR 20S

Global Perspective. National Strength. Midwest Values.

ON: WHY SHEitW ’s

During Detro son Piech Ali bankruptcy, $1 million a ed negotiat t gift to endowmen e future of th support the s. rt A itute of Detroit Inst

Contemporary Art — and last year oversaw planning and fundraising for the DIA’s annual gala. The event raised $1.2 million — 20 percent over goal. “It’s been a busy year and a half,” Piech said.

For well over a century, Dykema has provided exemplary legal and consulting services to North America’s greatest companies, large and small. As our clients have grown, so have we, expanding from modest Midwestern roots to become one of the nation’s largest law firms, with offices from coast to coast. With vast resources at the ready, our full-service team of lawyers works closely with our clients to help them achieve success. To point your business in the direction of exceptional and efficient service and outstanding results, please contact Peter Kellett, Chairman and Chief Executive Officer, at pkellett@dykema.com or 313.568.6800.

— Sherri Welch

Exceptional service. Dykema delivers.

M29

20150601-SUPP--0030,0031-RG1-CCI-CD_--

5/26/2015

4:53 PM

Page 1

CRAIN’S DETROIT BUSINESS // June 1, 2015

M30

20 IN THEIR 20S

DENISE Sampson, 27 Associate engineer DTE Energy Co.

unit within DTE that handles continual improvement of its infrastructure. Sampson and her team are tasked with engineering and maintaining DTE’s $50 billion overhead grid system. In this role, she redesigned nine circuits — work expected to save DTE an estimated $20,000 per storm and reduce outage minutes 65

percent. She also responded to a unique request by Dan Gilbert’s Bedrock Real Estate, which sought to hang art installations from DTE’s transformer pedestals in the alley next to Bedrock’s eccentric Z-Deck

lthough Denise Sampson left her native Detroit for college, the power of the city lured her back home. Upon graduating from WON: WHY SHEpso Tennessee State University in n’s Denise Sam May 2012 with an electrical rk saves o w gineering en engineering degree, Sampson er storm E $20,000 p T D was hired by Detroit-based residents’ — and gets DTE Energy Co. as an associate sooner. power back engineer on its engineering standards team — a special

— Dustin Walsh

MAX Schmidt, 28 Co-founder 1701 Bespoke LLC

am Umachi was walking past the First National Building in downtown Detroit when he spied a little shop selling custom tuxedos, suits and ties. He wheeled around and stepped in. Within a few weeks, he had the perfect shawl-collared tuxedo for his wedding. “I thought I would have to drive to Chicago to find the kind of look I wanted at a price I could afford,” said Umachi, a senior data analyst at Quicken Loans. Instead, he met Max Schmidt and Tom Daguanno, who started 1701 Bespoke in 2012 when they couldn’t

ZACK Sklar, 29 Owner/chef Peas & Carrots Hospitality

hen Zack Sklar returns to his alma mater, North Farmington High School, to deliver the graduation address next week, this is the story he’ll tell. It starts with his own fifth-grade prediction that he someday would go to culinary school, become a chef and own his own restaurant. At 29, he has accomplished all three of those goals. Sklar owns some of the region’s most popular restaurants — Social Kitchen & Bar, Beau’s Grillery and Mex — all under the Peas & Carrots Hospitality banner. He also runs a catering company, Cutting Edge Cuisine, that

he started while a student at the Culinary Institute of America. And by the end of this year, Sklar plans to more than double his restaurant portfolio. One of the highest-profile additions will be Bernie’s Lunch & Supper, which he describes as “rustic Mediterranean.” It will open in the River North area of Chicago by mid-July. “In Chicago, we’re going to be

Parking garage. “It was a request we’ve never had here at DTE,” Sampson said. “Transformers are sort of old and ugly, but the artwork weighs a few hundred pounds. We had to assess the structural integrity because the last thing we want is for one to fall down on pedestrians below.” Sampson said DTE leadership was skeptical. But after months of structural and electric analysis, her proposal was successful, and now two of DTE’s ordinary transformers are covered in abstract art.

ON: WHY HE WZack Sklar

s, In three year rant empire au st re built a , ocial Kitchen known for S , ar ye ex. This Beau’s and M d le it an he will doub icago. h C to d expan

playing in a different league than

find well-tailored — but affordable — suits for Daguanno’s wedding. They tapped into a need: Today, the pair have four employees, stores downtown and in Birmingham, and sold 250 suits last year to people like Umachi and Paul Glomski, CEO of Detroit Labs. Bespoke suits average $1,100 to $1,400 depending on fabric, which is imported from Italy. “Schmidt is part of the rebirth of fashion in Detroit,” Glomski said.

N: WHY HE WO midt and his ch When Max S uldn’t find co d n best frie , affordable well-tailored edding, they suits for a w r own. Now designed thei . roit they suit Det

— Maureen McDonald

Detroit,” he said, hinting at a menu that will allow him to “spread his wings” with dishes like prawns a la plancha with black squid

ink rice and piccata. Sklar’s total investment this year is $5 million; projected revenue is $32 million. By the end of the summer, Sklar will have 500700 employees. “I’m exceptionally driven,” he said. — Kristin Bull

20150601-SUPP--0030,0031-RG1-CCI-CD_--

5/26/2015

4:53 PM

Page 2

CRAIN’S DETROIT BUSINESS // June 1, 2015

M31

20 IN THEIR 20S

SHANNON Smith, 24 Analyst and legislative assistant Federal Reserve Bank of Chicago — Detroit Branch

t the Federal Reserve Bank, Shannon Smith leads a team of 20 in the cash department. But he’s also helping launch the Detroit Economic Development Challenge, a financial literacy and business basics program geared toward Detroit’s high school students. Smith, a born-and-raised Detroiter, hopes it will allow the city’s youth to have a greater role in the city’s revival. “The lack of financial literacy in urban communities … that’s something we can easily solve,” he said. “I really want to set out to start programs to encourage people to save their money and

show them what they can do when they have that capital.” Smith uses that passion to also serve as a community advocate for the city, working with Detroit City Council member Raquel Castaneda-

ON: WHY HE W ith is using Shannon Sm the Fed to his work at cial literacy bring finan udents. to Detroit st

Lopez on policy research. Part of what drives Smith is a goal to achieve racial equality in the city. “My hope is that we would be able to provide a forum that will come together and normalize race … and propose legislation that would promote diversity and inclusion,” he said.

GET IN ON THE CONVERSATION

Amy covers the city of Detroit and entrepreneurship

Keep up with Amy at crainsdetroit.com/blogs TWEET @HAIMERLAD

AMY HAIMERL

— Aaron Foley

DEANTE Thompkins, 26

Michigan's #1 Financial Advisor *

Workforce development technician Michigan Department of Transportation

Now with a Metro Detroit Location

Michigan’s Leading Fee-Only Financial Advisory Firm

o say DeAnte Thompkins hit the ground running after finishing college would be an understatement. And now he mentors other young people to do the same. The Michigan Department of Transportation hired Thompkins shortly after he graduated with a business administration degree from Northwood University in 2010. Among other things, the agency wanted him to run the 12-week summer Youth Development and Mentoring Program he’d participated in after high school. “Literally as soon as I graduated college, they gave me that position,” Thompkins said. Rebuilding the program wasn’t easy, but Thompkins was able to draw on his own experiences in the program, which gives students job training as well as life skills, from personal finance coaching to resume writing. He applied at his mother’s behest and then participated every summer during college. Now he manages the program, which has a budget of almost $1 million, and has hired and mentored 500 youths.

Charles C. Zhang

CFP ®, MBA, MSFS, ChFC, CLU

Managing Partner Fee-Only Advisor

We Uphold a Fiduciary Standard 101 West Big Beaver Road 14th Floor Troy, MI 48084 (248) 687-1258 “To me, the change starts with the youth,” said Thompkins, who was recently married. — Aaron Foley

ON: WHY HE W p m kins has

DeAnte Tho 0 entored 50 hired and m ts l studen high schoo e MDOT th gh throu program he leadership pated in. ci once parti

5931 Oakland Drive Portage, MI 49024 (269) 385-5888 (888) 777-0126

Visit www.zhangfinancial.com for more information Assets under custody of LPL Financial and TD Ameritrade. *As reported in Barron’s February 23, 2015. Factors included in the rankings: assets under management, revenue and the quality of the advisors’ practices. Minimum investment requirement $1,000,000.

DBpageAD_DBpageAD.qxd 5/18/2015 2:46 PM Page 1

Make your home

Upper Left: Macomb County elementary student. Upper Right: Macomb County CTE student. Lower Left: Mark Hackel, Macomb County Executive, Congressman Sander Levin, and Michael DeVault, MISD Superintendent congratulate a new citizen already serving his county with the U.S. Marines. Lower Right: Mark Hackel with a student from Keith Bovenschen School in Macomb County.

Macomb County School Districts

Important Facts

Anchor Bay Schools www.anchorbay.misd.net

Mount Clemens Community Schools www.mtcps.org

Armada Area Schools www.armadaschools.org

New Haven Community Schools www.newhaven.misd.net

Center Line Public Schools www.clps.org

Richmond Community Schools www.richmond.k12.mi.us

Â&#x2021; 90% of the parents in Macomb County give their SXEOLF VFKRROV DQ $ RU % JUDGH

Chippewa Valley Schools www.chippewavalleyschools.org

Romeo Community Schools www.romeo.k12.mi.us

Â&#x2021; Two High School International Baccalaureate $FDGHPLHV HQUROO RYHU VWXGHQWV

Clintondale Community Schools www.clintondale.k12.mi.us

Roseville Community Schools www.rcs.misd.net

East Detroit Public Schools www.macomb.k12.mi.us/eastdet/scheast.htm

South Lake Schools www.solake.org

Fitzgerald Public Schools ZZZ Ă&#x20AC;W] N PL XV

Utica Community Schools ZZZ XWLFDN RUJ

Fraser Public Schools www.fraser.k12.mi.us

Van Dyke Public Schools www.vdps.net

Lake Shore Public Schools www.lakeshoreschools.org

Warren Consolidated Schools www.wcskids.net

Lakeview Public Schools www.lakeview.misd.net

Warren Woods Public Schools www.warrenwoods.misd.net

/Âˇ$QVH &UHXVH 3XEOLF 6FKRROV www.lc-ps.org

0DFRPE ,QWHUPHGLDWH 6FKRRO 'LVWULFW www.misd.net

Â&#x2021; Over 60% of Macomb High School graduates report they have earned either Associate or Bachelor 'HJUHHV Ă&#x20AC;YH \HDUV DIWHU JUDGXDWLRQ

Â&#x2021; Early College of Macomb, a partnership with Macomb Community College, enrolls over 700 VWXGHQWV IURP DOO KLJK VFKRROV Â&#x2021; Macomb County schools provide a continuum of programs and services for 20,000 special education VWXGHQWV DJHV ELUWK WKURXJK Â&#x2021; Macomb High School students participate in over DZDUG ZLQQLQJ &DUHHU DQG 7HFKQLFDO 3URJUDPV Â&#x2021; Over 100 languages are spoken in Macomb County Schools where students and families receive English /DQJXDJH /HDUQHU VXSSRUW

20150601-SUPP--0035,0036-RG1-CCI-CD_--

5/26/2015

3:11 PM

Page 1

CRAIN’S DETROIT BUSINESS // June 1, 2015

M35

SPECIAL REPORT

TOM HENDERSON Reporter’s Notebook WEB: crainsdetroit.com/henderson TWITTER: @TomHenderson2

BIZ EDUCATION

State’s energy lured UM’s Desai director back home Kelly LaPierre is just the kind of young talent that Michigan lost for decades. The best and brightest would go to school here and, armed with a degree, head east, west or south to get jobs, find mates and raise families. And pay taxes. Well, I don’t know how Kelly is doing on the mate and family fronts, but I know how she’s doing on the job front, and it’s fantastic. And it’s here, in Ann Arbor. The Farmington Hills native got her bachelor’s degree in psychology from the University of Michigan, then headed to Harvard University to get her MBA, class of 2013. As she was wrapping up her MBA, she worked as an associate at the Boston Techstars, one of the growing national spinouts of the Boulder, Colo.-based firm that provides seed funding and helps incubate startup tech companies. In the past, combine a Harvard MBA with a job at Techstars and the outcome was: This ain’t someone coming back to Michigan. But in the summer of 2012, Kelly came back to Michigan to do an internship at Bizdom in downtown Detroit, and it whetted her appetite. “That’s what made me so excited to come back to Michigan, seeing all the energy and everything that was going on in Detroit,” she said. So, instead of staying in Boston or Cambridge after getting her MBA, Kelly came back to Michigan, as director of marketing for Grand Circus, one of Detroit Venture Partners’ portfolio of companies. Last summer, Kelly was hired as managing director of the Desai Family Accelerator, a new incubator for student startups at UM that was funded by a $1 million grant from Bharat Desai, the founder of Troybased Syntel Inc. “I’ve always loved the accelerator model,” she said. About 65 startups applied for the program, and she is whittling that to five or six for a 13-week program that starts June 8 and ends in time for the inaugural Demo Day on Sept. 11, in conjunction with another incubator/accelerator, Coolhouse Labs. The companies will get handson help commercializing their technologies, and $25,000 in upfront money that converts to equity if they get subsequent funding. Kelly has already landed one bigtime mentor, adviser and even potential investor for the accelerator’s companies: Bob Paul, who was CEO at Detroit-based Compuware Corp. before it was sold last December.

Fighting hackers, M37

Henry Ford College turnaround, M38

[GLENN TRIEST]

Master Chef Brian Beland (right) teaches culinary students at Schoolcraft College in Livonia.The college is launching a bachelor’s degree program this fall.

Smoothing the pathway Community colleges adapt to job trends with new degrees, student support By Amy Lane Special to Crain’s Detroit Business

hen Schoolcraft College starts a new culinary bachelor’s degree program this fall, it hopes to put students on a path to management positions in food and nutrition industries. Also in the works is a new certificate to prepare students for jobs in craft brewing and distilling — Schoolcraft’s response to an area of high growth and high interest, said President Conway Jeffress. “It is purely a market-driven decision,” he said. “You’ve got to get in it before it’s consumed by your competitors.” Such programs are among the many ways community colleges are upping their games, looking internally and externally at ways to help students succeed and find jobs in changing landscapes. There are first-ever bachelor’s and new associate degrees, fundraising efforts that

More new programs 䡲 A roundup of other new programs at area colleges and universities begins on Page M43. bolster scholarships and support basic student living and learning needs, and campuswide reexaminations of the route students take from entrance to exit. Community colleges are in a “continuing evolution of how do we better respond” to the needs of the community, students and industry, said Mike Hansen, president of the Michigan Community College Association. Sampling of initiatives Among the many initiatives community colleges are making is a supply chain management program that Henry Ford College is rolling out this fall. It includes a new technician

certificate and a new associate degree, driven by demand and Gov. Rick Snyder’s call for a Michigan logistics and supply chain ecosystem, said Doug Langs, international business and economics instructor in the business and computer technology division at the Dearborn college. A peg of the 2013-20 strategic plan put forth by Snyder is developing trained and certified workers who can fill jobs vital to moving materials from source to consumer and business markets, in industries including manufacturing, government and services. Langs, coordinator of Henry Ford’s new program, said it was developed over two years and with input of a 40-member advisory committee of local executives. The program targets entry-level jobs and spans about 20 classes, 10 of which lead to the See PATHWAY, Page M36

20150601-SUPP--0035,0036-RG1-CCI-CD_--

5/26/2015

3:11 PM

Page 2

CRAIN’S DETROIT BUSINESS // June 1, 2015

M36

SPECIAL REPORT: BUSINESS EDUCATION

PATHWAY, from Page M35: Community colleges up their game in reaction to trends supply chain management technician certificate. At Wayne County Community College District, new offerings this fall include an associate of science degree and a short-term certificate in product development prototyping — targeting industrial design and other positions — and a certificate in craft brewing. “We’re trying to prepare students for not only present needs, but future demand,” said Ron Harkness, district provost for career preparation and campus operations. At Macomb Community College in Warren, training students for jobs in an evolving automobile industry has led to several initiatives. One is the Center for Advanced Automotive Technology — an alliance that began in 2010 between the college and Wayne State University and whose work with industry, education, government and professional organizations includes developing curriculum like an electric vehicle development technology certificate offered by Macomb since 2013. “The CAAT became, in a sense, our periscope up into the automobile industry,” said Macomb President James Jacobs. “We started to look at developing curriculum for what we saw as the future of that industry.” Skills needed by auto and other industries, and even Hollywood, are the target of a new two-year digital sculptor associate degree program that Macomb will launch in August and aims at preparing students for work in industrial design studios. Executives from General Motors Co.

and Ford Motor Co. helped develop the curriculum. Helping students toward other business routes is the college’s Center for Innovation and Entrepreneurship, launched in fall 2014 to be a resource for students and community members for entrepreneurship education and training, mentorship for new and existing small businesses, and access to capital. The center in April awarded more than $9,000 in its first competition for students to pitch business ideas. New Washtenaw Community Col lege associate degrees this fall include the areas of automotive test technician and powertrain development technician. Washtenaw is also among several institutions in the area moving forward with initiatives funded by grants from the state’s Community College Skilled Trades Equipment Program. The program provides funds to help community colleges purchase equipment to deliver skilled trades training, and the $4.4 million Washtenaw received will support the purchase of equipment for its planned Advanced Transportation Center to provide training in intelligent transportation systems, advanced manufacturing and automotive transportation servicing. A curriculum is being developed, and the first courses will start to be offered this fall. Other local community colleges to receive grants include Macomb, Henry Ford and Oakland Community College, the latter of which is receiv-

ing $4.5 million to purchase equipment for training in occupations including auto servicing, diesel truck mechanics and truck driving, said Sharon Miller, Oakland’s vice chancellor of external affairs. She said Oakland has worked with WarrenCentral Sharon Miller: based OCC received $4.5M Transport to develop curriculum for equipment to teach auto service, and provide internships for a truck mechanics new associate and driving. degree program for heavy equipment mechanics that Oakland hopes to launch in fall of 2016. Oakland is also taking steps to become accredited to grant online degrees. New degrees A few community colleges across the state are offering first-ever bachelor’s degrees in the wake of 2012 legislation that allows them to grant baccalaureate degrees in the fields of culinary arts, cement technology, energy production technology and maritime technology. Schoolcraft’s new Bachelor of Science degree in culinary and dietary operations management builds off the Livonia college’s nearly 49-year-old culinary program. The college went through a rigorous process to receive a change in accreditation status from the Higher

Learning Commission of the North Central Association of Colleges and Schools, designed new courses and has hired one new full-time faculty member, Jeffress said. Jackson College has launched two new energy-related degrees: a B.S. in energy systems management and an associate degree in energy systems technology. The latter is designed to prepare students as entry-level technicians in settings like power plants, while the bachelor’s program is designed to give technicians additional skills in areas like project management, communications, business and decision-making. Todd Butler, dean of arts and sciences, said the college got input from utilities, including Jacksonbased Consumers Energy Co. , and the Center for Energy Workforce De velopment , a Washington, D.C.based consortium of electric, natural gas and nuclear utilities, and their associations. New buildings can also help propel and elevate a college’s role. At Monroe County Community College , a $17 million Career Technology Center, opened in 2013 on the college’s main Monroe campus, was a vital step toward bringing programs, facilities and equipment up to date and enabling the college to advance in such in-demand areas as welding technology, electronics and computer technology and mechanical design technology, said Joe Verkennes, director of marketing and communications. The new building, funded half by the state and half by the college, including a $2 million capital campaign, provided space that’s also benefited areas like an associate degree in nuclear engineering technology previously developed with DTE Energy Co.

Examining the path

Possible is everything. Today, more than ever, global competition, new technologies, and corporate streamlining require innovative thinking and leadership abilities. Continuing your education can be key to your success. From business administration and entrepreneurial skills to project management and technical and professional communication, Lawrence Technological University offers innovative degrees 2015 2015 2015 TOP 100 BEST COLLEGES AMERICA’S BEST and fast-track certificate programs to prepare you UNIVERSITY in the Midwest UNIVERSITIES Highest Alumni Princeton U.S. News & Salaries Review® World Report® for the careers of the future. PayScale LTU ranks fifth among U.S. colleges and universities for boosting graduates' earning power. – Brookings Institution Architecture and Design Arts and Sciences Engineering Management

Lawrence Technological University 21000 West Ten Mile Road, Southfield, MI 48075-1058 800.225.5588 | admissions@ltu.edu | www.ltu.edu

Less visible than buildings, new degrees and programs are inner looks that colleges are taking of students’ paths to degrees and the reasons students may fail to compete a degree in a timely manner or drop out of college. Community colleges in Michigan are adopting elements of a “guided pathways” approach that’s been used at some schools nationally. It focuses on providing students with clear road maps through their programs of study to an end goal. “They might take courses that don’t get them to their goal. And they may not be getting to their goal in the most efficient way possible,” said Chris Baldwin, executive director of the Michigan Center for Student Success, an initiative of the Michigan Community College Association. The center is operating training in the approach and technical assistance and consultation from national experts. The first group of 12 community colleges started through the training program in January. The extent to which each college will revise its operations varies; many have adopted aspects of redesign in re-

cent years, Baldwin said. One of those colleges, Mott Community College in Flint, has reorganized its website and annual course catalog to reflect a department-bydepartment examination of the careers for a particular area of study and classes needed to earn the associate degree, said Amy Fugate, vice president for academic affairs. Fugate said “students come in, especially to community colleges … take this class in one area and this class in another area, without any plan. What we really needed to do with this guided pathways initiative was to get it laid out for them.” Other elements include heightened advising, faculty and staff training, and possibly computer software to help track student progress. Paul Fisher, associate dean of business and computer technology at Henry Ford, said guided pathways includes making sure that students have all the support they need, like tutoring, and that everybody at the college “is thinking about the student’s progress in the same terms,” he said. Oakland is also self-evaluating, under an academy run by the Higher Learning Commission. One step is to start gathering data on whether firsttime students return in subsequent semesters and if they don’t, why. Fundraising Improving student outcomes also gets attention in fundraising. At Macomb, a $10 million campaign launched in July 2013 by the college foundation includes support for initiatives like a reading and writing center to improve collegelevel skills as well as provide specialized support for those who speak English as a second language, and expanded veterans services. The campaign is in its “silent phase” and has thus far raised slightly more than $3 million. Washtenaw has raised $8.46 million toward its $8.5 million campaign that touches areas from scholarships to support services like child care, transportation, tutoring and mentoring, to new teaching and learning methods and classroom technologies. The campaign launched in 2013. “The biggest reason was to provide more access to students to an education,” said President Rose Bellanca. Tim Wadhams, former CEO and president of Masco Corp. , who chaired the campaign with his wife and former Washtenaw attendee Laurie, said a $7 million target was set for need-based scholarships and money raised thus far has enabled Washtenaw to increase scholarship levels. A per-semester scholarship toward full-time tuition is now $1,000, up from $800. Full-time tuition is about $1,200. Wadhams said more than $1 million has been raised toward student support services and nearly $500,000 raised toward the classroom innovation category.

20150601-SUPP--0037-RG1-CCI-CD_--

5/26/2015

4:28 PM

Page 1

CRAIN’S DETROIT BUSINESS // June 1, 2015

M37

SPECIAL REPORT: BUSINESS EDUCATION

Data-rich schools learn hackers are smarter, persistent By Kirk Pinho kpinho@crain.com

Hackers have become more advanced during Carl Powell’s decades of information technology and higher education experience. “The hackers used to be experimental idiots,” said Powell, the chief information officer at Eastern Michigan University. “Nowadays, they are very skilled and knowledgeable. They take their time.” Powell and other university cybersecurity experts said they are bombarded daily with attempts to hack into their systems to gain access to sensitive information, such as Social Security numbers and medical records. “There might be higher concentrations at certain times, like long weekends and holidays when things are going to step up,” said Edward Tracy, associate vice president of technology services for the University of Detroit Mercy . “They know your human resources aren’t watching 24-7 but, thankfully, the technology is there.” That’s a common theme among chief information officers and other college and university cybersecurity experts, who say that trying to thwart hackers is nothing new to them but that it has received more attention recently because of highprofile, large-scale breaches at companies such as Target Corp. and Home Depot Inc. “It’s a con game that’s been going on for decades,” Powell said. Experts say colleges and universities are prime targets for attacks because of the vast amount of personal information they keep about students, faculty and employees. “There are attempts made every day,” said Joseph Sawasky, CIO and associate vice president of computing and information technology at Wayne State University. “On a weekly basis, we are probed millions of times from places in China, primarily. Ninety percent of the probes are turned away at the outset.” But not all. Powell said that in 2010, “a guy who hated Microsoft” gained access to an EMU student’s email account so he could “send hate mail to Microsoft on his behalf.” The Privacy Rights Clearinghouse Chronology of Data Breaches says 727 breaches of education occurred at institutions between 2005 and 2014, making public more than 14 million records. Those breaches were in higher education as well as trade schools, K-12 schools and school districts, and nonprofit organizations in the education sector. The Privacy Rights Clearinghouse reported that 17 known hacking breaches have occurred in Michigan since 2005, involving Michigan State University , Jackson Community College , Genesee Inter mediate School District , University of Michigan , Calhoun Area Career Center in Battle Creek, EMU, West ern Michigan University and Ferris State University.

[GLENN TRIEST]

Edward Tracy, the University of Detroit Mercy’s associate VP of technology services, says hackers “know your human resources aren’t watching 24-7 but, thankfully, the technology is there.”

The Educause Center for Analysis and Research —a nonprofit IT organization with offices in Washington, D.C.; Louisville, Ky.; and Colorado —reports that although the education sector has the secondhighest number of reported security breaches, fewer records were exposed during those breaches, representing just over 1 percent of the total records exposed between 2005 and last year. Donald Welch, chief information security officer for UM, said successful hacks have occurred at the university but he declined to elaborate. “Every institution fights off attacks all the time, and some of them are successful, but there hasn’t been a huge one like at the University of Maryland,” Welch said. Last year, the university, in College Park, reported that a database with nearly 280,000 faculty, staff and student records was breached. Those records included names, Social Security numbers, birthdays and university identification numbers of students who attended Maryland between 1992 and 1998 and all faculty, students and staff who had a university ID between 1998 and Feb. 18, 2014. In response to the breach, the university offered free ID protection software for five years, investigated its information and computing systems and formed a task force on cybersecurity, and held seminars on data security. The cause of the breach remains under investigation. It’s not hacking attempts from students looking to change their grades, for example, that keep college and university cybersecurity experts awake at night. Instead, it’s highly sophisticated organizations and governments outside the United States, Welch said. “The threats are very real. They range from small operators who may not have much malicious intent, all the way up to organized crime, to national organizations, NGOs (nongovernmental organiza-

tions) that want to do our society harm and everything in between.” Russia. China. North Korea — all are serious causes of concern. And they are becoming increasingly sophisticated, said UDM’s Tracy, citing a phishing incident involving the university’s president, Antoine Garibaldi, and its controller, James Priskey. “There was an email that appeared to come from our president to our controller asking him to provide information on how to wire money

to a location,” Tracy said. “Our president would never ask for that. He would say, ‘You wire the money to that location.’ Our controller laughed. It was creative because they got the real name of the president and the real name of the controller.’” In their efforts to combat attacks, colleges and universities in Michigan employ a range of strategies, ranging from antivirus software to firewalls to a tactic akin to vaccination and just about everything in between.

“We conduct a periodic penetration test where we hire firms that probe your system and let you know where your vulnerability is,” Sawasky said. “It’s kind of a health check, a full annual physical.” Barbara Ciaramitaro, a professor of information technology and director of the Center for Cybersecurity Leadership at Walsh College in Troy, said colleges and universities are particularly at risk for hacking because of their culture of openness. “We don’t do background checks on our students. We don’t control the people who are using the technology,” Ciaramitaro said. “We cannot put the same levels of controls on, so it becomes a tremendous challenge to be able to protect the data.” She said that the number of attacks will continue to increase and that they will become far more sophisticated, ranging from hackers not merely stealing data but altering it, for example. “Dick Cheney had to wear a lead vest because pacemakers are connected to the Internet and can be hacked,” she said, referring to the former vice president. “Will it be possible to take control of your insulin pump? Your car?” And there won’t be a day again when institutions of higher education no longer have to worry about cyber threats, Ciaramitaro said. “Never. Never, never, never.” 䡲 Kirk Pinho: (313) 446-0412 Twitter: @kirkpinhoCDB

FROM MIDTOWN TO YOUR TOWN, WAYNE STATE MEANS

BUSINESS Flexible full-time and part-time M.B.A. options GMAT waiver for qualiﬁed applicants Locations in Midtown Detroit, Livonia, Farmington Hills and Macomb County 31,000 business alumni across the state of Michigan and around the world Are you ready to join our powerful network? Contact us at gradbusiness@wayne.edu or 313-577-4511. Apply by July 1 to begin fall semester

School of Business business.wayne.edu

20150601-SUPP--0038-RG1-CCI-CD_--

5/26/2015

4:29 PM

Page 1

CRAIN’S DETROIT BUSINESS // June 1, 2015

M38

SPECIAL REPORT: BUSINESS EDUCATION

Henry Ford College beats debt crisis, looks to future By Brian Bowe Special to Crain’s Detroit Business

Two years ago, Henry Ford College was roiled by crisis. Its cash flow was approaching zero, and the school was carrying a $16 million deficit. “It was certainly very scary, and people obviously were afraid for their jobs and wondering if the college would stay open,” said Eric Rader, a political science professor and chairman of the HFC faculty senate. Things look brighter these days for the 77-year-old Dearborn-based community college. Earlier this month, HFC had a fund balance of $21.7 million — about enough to pay three months worth of bills, according to President Stan Jensen. Board of Trustees President Aimee Schoelles called the transformation “quite miraculous.” “We’ve obviously seen some really good things happening,” Jensen said. Crisis response Times were different a few years ago. Like many community colleges, HFC (which dropped the “Community” from its name in 2014) experienced a surge of enrollment before the 2013 crisis, thanks to a poor job market, which tends to spur enrollment at community colleges.

Schoelles explained that a small percentage of those students would register for classes — and occasionally cash their financial aid checks — but would never show up for classes. In those cases, the federal government requires the institution to repay the disbursed financial aid directly. “We can go after that student, but the government wants their money right away, so the college has to reimburse that,” Schoelles said. Exacerbating the problem was the way HFC counted revenue on students upon enrollment, rather than after actually attending classes. Also, Schoelles said, when the college’s enrollment spiked, it didn’t sufficiently increase its reserves for bad debt. “Our bad debt went through the roof,” Schoelles said. “In 2013, we were almost near financial ruin, the morale was even lower and we were making all kinds of financial cuts,” said nursing professor Cathy Gangarossa. Michael Hansen, president of the Michigan Community College Association , said HFC’s problems were similar to ones experienced at other institutions in the state. But, he added, HFC’s problems were compounded by the leadership change midcrisis and a “lack of transparen-

anticipate adding any more mill levies to the community,” Jensen said. “We’re not going to build this on the backs of our students, so we’re going to have to raise a lot of money and get the state to help us .” Rader, however, questioned the ambitiousness and cost of the proposal. “The buildings would be beautiful and would certainly change the look of the campus in a lot of ways,” Rader said. “The question that many of us had is how this would be paid for. We just came through this big crisis, and two years later we’re talking about brand-new buildings.” Faculty uneasiness

[LARRY PEPLIN]

After pulling Henry Ford through a financial crisis, President Stan Jensen is looking to the future, including updating buildings, such as the Liberal Arts Building (above). cy” about the depth of the financial situation. “That’s what made the Henry Ford situation feel more like a crisis,” Hansen said. “It had festered so long without proper, advanced intervention that by the time the right people found out about the magnitude, it was not too late, but it was getting almost too late.” Jensen said that before he was hired, the trustees were open with him about the budget situation, but he was surprised to find out how urgent the cash flow problems were. “We had to do something quickly,” Jensen said. Part of the solution was instituting more-detailed departmental budgets with defined spending authority, Jensen said. “There were no budgets that we could find, and nobody was really held accountable,” he said There were other components to the turnaround. In November 2013, voters approved two millage proposals — a 15-year 3-mill renewal and a five-year increase of 1 mill. There were also concessions from employee unions, 14 layoffs and 36 faculty members who accepted early retirements. Finally, Jensen said, there were vendor cuts, and some previously outsourced tasks were brought back in-house. Looking beyond the immediate fixes to the financial crisis, Jensen began creating teams to look at many of HFC’s processes and suggest improvements. “You need to get the best system as possible,” Jensen said. “The college that has the best system — and the best processes within the system — will win the race we’re in.” And what is that race? “The race is to serve students better and to solve everything from national to local problems as far as education, preparing people for the future,” Jensen said. To that end, Jensen has instituted “continuous process improvement”

teams — a tactic he used frequently as a consultant in private practice. Each team of four to eight people meets for a defined period — usually a semester — to examine a process. The team then submits a report that includes suggestions, how to pay for those suggestions, and who would be responsible for implementing those suggestions. Jensen said HFC has instituted 28 teams, which have generated some 250 ideas for process improvements. One of those changes — switching to debit card-style instruments for student refunds rather than paper checks — saves the college around $100,000 a year. Looking forward The changes appear to have had positive results. HFC’s enrollment numbers for next year are up more than any other college in the state, Hansen said, “which is a great sign, and the credit is to their ability, especially under Dr. Jensen, to really right the ship.” Now, HFC is able to make plans for the future, like moving closer to offering four-year degrees and considering plans for facility upgrades. “When you’re in crisis, you’re only looking at right now, and we’re not,” Schoelles said. “We’re looking at the future. We’re looking at how we can better serve our students.” Many of the college’s buildings are approaching an age where it makes sense to ask whether they should be renovated or replaced, Jensen said. HFC has been working with architectural firm Stantec Inc. to draw up a plan for renovating and replacing some buildings, including the heavily used Liberal Arts Building. A draft plan was shared with the board in January, and there have been public meetings to gather input. Jensen said he hopes for board approval as soon as this summer “The whole price tag is, at this point, probably about $150 million, which we don’t have, and we do not

The facilities plan is one of the areas where some faculty members are raising questions. Under Jensen, the college has been reorganized to bring other employee groups into the process, which in turn has diminished the power of the faculty to influence the direction of the institution. “By giving the support staff and the adjunct faculty a seat at the table, we’ve essentially taken power away from the faculty, and they’re very bitter about that,” Schoelles said. Rader said the reorganization felt like an effort to reduce the faculty’s role in the institution. “Many times, full-time faculty felt as if we were in a defensive position. We were portrayed sometimes as if we didn’t want other groups involved in the structure,” Rader said. Jensen acknowledged that the reorganization ruffled feathers. “I think mainly they were OK with it. Some are not, because they view it as watering down their voice,” he said. “We still certainly respect their voice a great deal, but we include everybody else’s too.” Not all of the faculty members are unhappy with the college’s transformation, though. Gangarossa said she is excited about the changes Jensen has brought to HFC, calling it a “positive turn.” Gangarossa said she served on the faculty senate until she resigned in January “because of the disrespect that was shown toward Dr. Jensen and the administration.” “It was just too much to bear, ” she said. “Dr. Jensen came aboard and was basically very transparent with all of us and said ‘OK, this is what we have going on, and everybody needs to be part of a team.’ ” Schoelles said she believes the tension won’t last. “I would be surprised if it lasted more than two years,” Schoelles said. “The number of faculty that are disgruntled is very small, but they’re very vocal.” Hansen said the health of HFC is important for the region’s future. “That college is too important to the community and to the state that people realize that we aren’t going to let it go. But it did have a bumpy ride there for a while.”

DBpageAD_DBpageAD.qxd 11/17/2014 9:42 AM Page 1

DBpageAD_DBpageAD.qxd 5/20/2015 5:21 PM Page 1

Value(s) added.

Earning a graduate degree in business from UDM means you’ve gained the kind of strategic thinking that can make an impact in today’s business world. It also means you bring a socially responsible perspective to every decision. That’s because UDM’s College of Business Administration infuses its curriculum with both excellence and ethics, drawing on its Jesuit and Mercy traditions. In fact, our MBA program is ranked among the world’s top 30 for sustainability. So UDM graduates deliver an uncommon value-added to the workplace. And UDM’s AACSB accreditation means that you’re attending an elite business school—among the top 5 percent worldwide—where teaching matters as much as research, and accountability reigns. GRADUATE DEGREES

GRADUATE CERTIFICATES

MBA Joint JD/MBA Joint MBA/Health Services Joint MBA/Computer Info Systems

Finance Forensic Accounting Business Turnaround Management (online) Ethical Leadership & Change Management

We want great things for you.

business.udmercy.edu

20150601-SUPP--0041-RG1-CCI-CD_--

5/27/2015

10:27 AM

Page 1

CRAINâ&#x20AC;&#x2122;S DETROIT BUSINESS // June 1, 2015

M41

CRAIN'S LIST: GRADUATE BIZ DEGREE PROGRAMS $

" !

! ! # !

! " " " " % &

Andrews University Berrien Springs 49104-0620 (269) 471-6321

MBA; MSA in church administration; M.A. and Ph.D. in educational leadership, higher education administration; graduate certificates in educational leadership

Berrien Springs

Online, full time, part time

2.6

Varies

$1,021

Aquinas College 1607 Robinson Road S.E., Grand Rapids 49506-1799 (616) 632-2924

Master of management with concentrations in organizational leadership, marketing management, sustainable business and health care administration; master of sustainable business

Grand Rapids

Part time, full time

2.8

450

$548

Baker College Center for Graduate Studies 1116 W. Bristol Road, Flint 48507 (800) 469-3165

MBA, M.S. in information systems, industrial/organizational psychology, M.S. educational effectiveness, M.S. in Nursing, doctor of business administration

Online, part time

Varies

3 years fulltime work

$420

Central Michigan University 1650 Research Drive, Suite 165, Troy 48083 (248) 526-2620

MBA, concentrations in MIS/SAP, HR, logistics management, marketing, organization, marketing; MSA in acquisitions, HR, leadership, general, information resource management, international administration, other; M.A. in education in curriculum and instruction, training and development, others MBA in health care leadership, management and a one year MBA (accelerated); certificate in financial planning

Allen Park, Auburn Hills, Clinton Twp., Flint, Jackson, Cadillac, Port Huron, Muskegon Auburn Hills, Clinton Twp., Dearborn, Southfield, Troy, Warren, Mount Pleasant, Saginaw, others Ann Arbor, Howell

Full time, part time, evenings, weekends and online

2.7

NR MBA 450/ NR

$507

Online, blended

2.5

$600

Ann Arbor (main campus); Full time, part time, Dearborn and Frankenmuth evenings and online

Varies

Lansing, Kalamazoo, Grand Full time, evenings, Rapids online

2.7

$530 for MSEL and MSCI; $640 for OLA and MBA 470

Livonia, Warren, Grand Rapids, Lansing, Midland, Flint, Saginaw, others

Full time, part time, evenings, weekends and online

2.75

Waived at $685-$695 3.4 or better

Southfield

Full time, part time, online

2.7

Waived at 2.7 or better

$766

Ypsilanti. MBA and MSHROD courses also offered in Livonia, and some in Traverse City

Full time, part time, evenings. For MBA and MSHROD, some availability on Saturdays and online Online, weekends, campus

Varies

450/ 500 MSA

$480.75

2.75

500/upper 50th percentile

$512

Full time integrated; part time

3.0

500

$589

Online, full time

3.0

$829

MBA, M.S. in information Technology, dual degrees: MBA/M.S. in information Lawrence Technological University 21000 W. 10 Mile Road, Southfield 48075-1058 Technology, MBA/master of engineering management, MBA/master of architecture (248) 204-2210

Full time, part time and online

3.0

3.0 or better

$1,050

Madonna University 36600 Schoolcraft Road, Livonia 48150 (734) 432-5667

Southfield, Warren (for Tacom employees), Chrysler Technical Center (for CTC employees). MBA, 9 certificate options; MSBA in leadership studies, leadership studies in Livonia, Gaylord, Clinton criminal justice, and international business; MS in health services administration Twp., Detroit

Part time, evenings, weekends and online

3.0

$710

M.A. in human resources management, educational leadership

Detroit, online

Part time, full time, online

3.0

Varies

East Lansing, Troy

Full time, part time, evenings, weekends, and online

Varies

Houghton

Campus, full time, part time

2.9

550/NR

$820.50

Marquette

Full time, part time, campus

3.0

500/NR

$623

Troy, Grand Rapids, East Lansing, Midland

Full time, accelerated, part time, evenings, online and executive

3.0

Varies

Rochester Hills

Part time or full time, evenings, some Saturday, online

3.0

GMAT 500/ V 153 Q 144

$637.25

Olivet

Online

3.0

500

$700

Saginaw

Online, hybrid, part time, evenings

3.0

450

$497.60

Southfield, Jackson, Monroe, Adrian, Battle Creek, Benton Harbor, Lansing

Evenings, blended online, online

3.0

$562

Cleary University 3750 Cleary Drive, Howell 48843 (800) 686-1883 Concordia University - Ann Arbor 4090 Geddes Road, Ann Arbor 48105 (734) 995-7300

MBA, master's in organizational leadership and administration, with concentrations in corporate communication, finance, health care ,HR, international business, management, marketing, others. Master's in ed. leadership, curriculum, instruction

MBA; MBA concentrations in health care administration, technology Cornerstone University, Professional and management, global business, project management, finance; M.S. in Graduate Studies 1001 E. Beltline Ave. NE, Grand Rapids 49525 management (616) 222-1448 MBA with optional graduate certificates in accounting, forensic accounting, Davenport University finance, health care management, HR management, others; executive MBA, M.S. 27650 Dequindre Road, Warren 48092 in information assurance, health informatics, others; master of management; (800) 686-1600 competency based MBA DeVry University Keller Graduate School of On campus: MBA, M.S. in accounting. Online: master's in accounting and financial management, HR management, information systems management, Management 26999 Central Park Blvd., Suite 125, Southfield network and communications management, project management, public administration 48076 (248) 213-1610 General MBA or in one of 13 areas; M.S. in accounting, M.S. in HR and Eastern Michigan University organizational development, information systems, others; 13 graduate 306 Gary Owen Building, Ypsilanti 48197 certificates, two interdisciplinary graduate certificates (734) 487-4444

Ferris State University 1201 S. State St., Big Rapids 49307 (231) 591-2000

Grand Valley State University Seidman College of Business 50 Front St., Grand Rapids 49504 (616) 331-7400 Kettering University 1700 University Ave., Flint 48504 (800) 955-4464

Marygrove College 8425 W. McNichols, Detroit 48221 (313) 927-1513

MBA, M.S. in information security and intelligence

Auburn Hills, Big Rapids, Clinton Twp., Dowagiac, Flint, Garden City, Harper Woods, Howell, Lansing, Midland, Port Huron, Saginaw, Warren, others MBA with optional emphasis in finance, innovation and technology management, Grand Rapids, Holland health sector management, sustainable enterprise, and international business; M.S. in taxation; M.S. in accounting MBA with concentrations in leadership, health care systems, IT, supply chain, and Flint technology management; engineering concentrations in manufacturing, health care systems, others; M.S. in engineering; others

MBAs: full-time and executive. MS degrees in accounting; business analytics; finance; hospitality business; management, strategy, and leadership; marketing research; and supply chain management. PhDs in accounting; business information systems; finance; logistics; management; marketing; and operations and sourcing management. Michigan Technological University School of MBA, accounting and applied natural resource economics Business and Economics 1400 Townsend Drive, Houghton 49931-1295 (906) 487-3055 MBA Northern Michigan University Walker L. Cisler College of Business 1401 Presque Isle Ave., Marquette 49855-5301 (906) 227-2900 MBA and M.S. in organizational leadership Northwood University Richard DeVos Graduate School of Management 4000 Whiting Drive, Midland 48640 (800) 622-9000 MBA, executive MBA in health care management, information systems Oakland University School of Business leadership, M.S. in IT management, master of accounting; post-masters Administration certificates in accounting, business economics, entrepreneurship, finance, others; 238 Elliott Hall, Rochester Hills 48309 and general management geared to non-business masters applicants (248) 370-3287 MBA in insurance Olivet College 320 S. Main St., Olivet 49076 (269) 749-7626 MBA Saginaw Valley State University 7400 Bay Road, 160 Wicks, Saginaw 48710 (989) 964-6096 M.A. in leadership in organization, health care, higher education Siena Heights University 19675 W. 10 Mile Road, Suite 400, Southfield 48075 (248) 799-5490 Michigan State University Broad College of Business 632 Bogue St. N520, East Lansing 48824 (517) 355-8377

See Next Page

20150601-SUPP--0042-RG1-CCI-CD_--

5/27/2015

10:28 AM

Page 1

CRAINâ&#x20AC;&#x2122;S DETROIT BUSINESS // June 1, 2015

M42

CRAIN'S LIST: GRADUATE BIZ DEGREE PROGRAMS From Previous Page $

! ! # " " %

! " " &

" !

Spring Arbor, Flint, Grand Rapids, Jackson, Lansing, Bay City, metro Detroit, metro Toledo, others

Full time, online, hybrid

3.0

$603

$1,489

Spring Arbor University Gainey School of Business 106 E. Main, Spring Arbor 49283 (517) 750-6611

MBA

University of Detroit Mercy 4001 W. McNichols, Detroit 48221 (313) 993-1203

MBA; MBA with health care concentration; joint MBA/MHSA; joint JD/MBA; Detroitâ&#x20AC;&#x201D;McNichols joint MBA/MCIS; graduate certificates in finance, ethical leadership and change Detroitâ&#x20AC;&#x201D;Riverfront management, forensic accounting, and business turnaround management

Part time, full-time, and evenings; BTM available online

3.0

University of Michigan Ross School of Business 701 Tappan St., Ann Arbor 48109 (734) 763-5796

MBA, global MBA, master's in accounting, supply chain management, management; over 20 MBA dual degree programs; doctoral study program

Full time, part time (evening or weekend) and executive

Varies

Can be waived with professional experience. NR

University of Michigan-Dearborn College of Business 19000 Hubbard Drive, Dearborn 48126 (313) 593-5460

36-48 credit MBA in accounting, finance, HR management, international Dearborn business, investment, management information systems, marketing, others. 30-credit MS in accounting, business analytics, finance, information systems and supply chain. Dual degrees in MBA/MS-Finance, MBA/Master of Health Services

Full time, part time, evenings and online

$822

University of Michigan-Flint School of Management 2200 Riverfront Center, 303 E. Kearsley St., Flint 48502 (800) 942-5636

MBA with concentrations in accounting, computer information systems, finance, Flint health care management, international business, lean manufacturing and marketing; M.S. in accounting; graduate certificate in business

Part time, full time, traditional, mixed

3.0

450/150

$621.25/$771

University of Phoenix 26261 Evergreen Road, Suite 135, Southfield 48076 (248) 675-3704

B.S. in business administration and MBA; concentrations in accounting, management, finance, human capital, marketing, project management, manufacturing

Southfield and Downtown Detroit

Evenings and online

2.5

$740

University of Windsor Odette School of Business 401 Sunset Ave., Windsor, Ontario N9B 3P4 (519) 253-3000

MBA; MBA/JD dual; master's in management in international accounting and finance; and manufacturing, logistics, supply chain and HR management

Windsor

Full time

2.75

550

Varies

Walsh College 3838 Livernois Road, Troy 48083 (248) 823-1610

MBA, M.S. in accountancy, finance, information technology and leadership, Troy; Novi; classes at others. Dual degrees: MBA/MS finance, MBA/MS info tech leadership, MBA/MS University Center, Macomb management, MBA/MS marketing Community College; St. Clair County Community College MBA, M.S.A., M.S. in taxation, graduate certificate in business, joint J.D./MBA, Detroit, Farmington Hills, Ph.D. in business with tracks in finance, management and marketing Warren, Livonia

Full time, part time, evenings, weekends and online

2.750

$673.00

Full time, part time, evenings, weekends and online

GMAT 450 Ph.D. 600

$663.75

MBA in aviation, computer information systems, finance, general business, health care, others; MBA/J.D., MBA/M.D., M.S. in accountancy

part time, evening

2.5

GMAT 450 or equivalent GRE score

$515.0

Wayne State University School of Business Administration 5201 Cass Ave., Detroit 48202 (313) 577-4501 Western Michigan University Haworth College of Business 2100 Schneider Hall, Kalamazoo 49008 (269) 387-5133; .

List researched by Crainâ&#x20AC;&#x2122;s staff

Ann Arbor

Grand Rapids, Kalamazoo

Varies

20150601-SUPP--0043,0044,0045-RG1-CCI-CD_--

5/27/2015

9:44 AM

Page 1

CRAIN’S DETROIT BUSINESS // June 1, 2015

M43

SPECIAL REPORT: BUSINESS EDUCATION

NEW PROGRAMS This directory of new programs was compiled from dozens of interviews with academic, admissions and marketing executives at these schools. The list is meant to showcase new programs of interest to a Southeast Michigan business readership. If you know of a new program we should add for the online version of this directory, please contact Gary Piatek at gpiatek@crain.com.

[BAKER COLLEGE]

BakerCollege is offering an online M.S. in nursing.

Baker College Among the new programs at Baker this fall are an online Master of Science in nursing for registered nurses and a Bachelor of Science in nursing at its Auburn Hills campus.

Central Michigan University New for this year is a fermentation certificate science program at Central Michigan’s Mount Pleasant campus. The 16-credit program provides a hands-on education in craft beer, and is open to both degree-seeking and nondegree-seeking students accepted into CMU. Besides the lecture and laboratory-based courses, an internship of at least 200 hours is required in a production-scale facility. CMU also has a new online graduate certificate in cybersecurity. The 15-hour certificate is designed to train cybersecurity professionals, and courses will prepare students for industry certification examinations. In addition, CMU is offering an electronic media sales minor in which students gain in-depth sales and marketing training for careers with media companies or clients of those companies. CMU will begin its second year of a new entrepreneurship department, created to enhance its existing entrepreneurship program. The program has 257 majors and 36 minors.

Cleary University Cleary will offer three new Bachelor of Business Administration programs this fall. The BBA in business leadership is an online and accelerated program that covers business management and leadership principles. The 120credit-hour program can be completed in 16 months and has four master’s level courses built in that

can be used toward a master’s degree. The BBA in human resource management encompasses a range of career directions, including compensation, recruiting, benefits administration and labor relations. The BBA in interdisciplinary studies allows students to build their own degree path by studying a range of business disciplines rather than concentrating on a specific area.

Concordia University This summer, Concordia will launch a Master of Science degree in organizational leadership and administration. The 32-credit-hour program includes a certified manager certification. Students can finish both the degree and certification in one year. Concordia’s new on-campus business accelerator is up and running. This fall the Ann Arbor campus will take part in a social entrepreneurship business planning competition that will culminate in a pitch event to investors and where money will be awarded to the top business plan team.

tions in fraud investigation, managerial accounting and internal auditing. Students may choose from several tracks that culminate in preparation courses for the Certified Internal Auditor, Certified Management Accountant and Certified Fraud Examiner exams, or more broadly focused tracks on general accountancy or finance.

Eastern Michigan University EMU is offering an M.S. in taxation at its Ypsilanti campus. The 30 credit-hour degree is intended to develop tax professionals in the public and private sectors with a broad understanding of compliance, planning and policy elements of tax practice.

Kettering University [LARRY PEPLIN]

HenryFord College’s technologybuilding

Davenport University

Henry Ford College

This fall, Davenport will begin offering a new master of accountancy degree program with concentra-

supply chain management and a new supply chain management technician certificate through its business and computer technology division. The 31-credit certificate will prepare students for two nationally recognized credentials through the Manufacturers Skill Standards Council, which concentrates on the core skills that companies are seeking in entry-level workers. The program focuses on the Certified Logistics Associate and Certified Logistics Technician certifications. The Dearborn-based college will also offer a new associate degree in pre-engineering. The degree will fulfill the first two years of courses for a B.S. in engineering. In addition, HFC will start an engineering technology program that combines mathematics, engineering and technology courses to provide hands-on skills required in workplaces through computer and laboratory-based practices.

This fall, Henry Ford will offer a new associate degree program in

Kettering is offering an Innovation to Entrepreneurship minor that consists of 18 credits in elective courses related to innovation activities such as engineering design and applied science, followed by an exploration of the mindset and activities of failed and successful innovators and entrepreneurs.

Lawrence Technological University Lawrence Tech’s College of Engineering is offering four new engineering degree programs: an M.S. and graduate certificate in fire engineering, an M.S. in biomedical engineering and an M.S. in engineering technology, as well as a B.S. in embedded software engineering. In addition, LTU’s College of Arts and Science is offering a bachelor’s in mathematical sciences, designed to train students who intend to go into graduate school, medical school or industry. All five new programs are at the Southfield campus, although some coursework is available online.

Madonna University Madonna will offer a new online M.S. in business administration in executive leadership for mid- to senior level executives in February 2016. The 35-credit-hour program will be taught by faculty who were selected for their multidisciplinary industry experience to prepare students for the workplace.

Marygrove College Marygrove has three new health science programs: a bachelor’s of See PROGRAMS, Page 44

WE’RE SHAPING MICHIGAN’S FUTURE BUSINESS LEADERS. #1 online graduate business programs in Michigan by U.S. News & World Report (excluding MBA) #2 part-time and #3 online MBA in Michigan by U.S. News & World Report Named “Best Business School” for sixth consecutive year by Princeton Review

Learn more at umdearborn.edu/cob.

20150601-SUPP--0043,0044,0045-RG1-CCI-CD_--

M44

5/27/2015

9:45 AM

Page 2

CRAIN’S DETROIT BUSINESS // June 1, 2015

SPECIAL REPORT: BUSINESS EDUCATION

Earn your MBA degree downtown University of Detroit Mercy will offer evening MBA courses at its Riverfront Campus on East Jefferson, beginning in August. Experience the Jesuit/Mercy difference with an MBA ranked in the world’s top 30 for sustainability, from an AACSB-accredited business school. Scholarships are available. Score a 600 or higher on the Graduate Management Admission Test (GMAT) and reduce your tuition by half. The MBA program is also available on UDM’s McNichols Campus.

For information on UDM’s MBA, contact Omid Sabbaghi at omid.sabbaghi@udmercy.edu

We want great things for you. business.udmercy.edu

PROGRAMS,from Page 43: New classes, degrees for the fall semester health science with a concentration in community wellness and public health; a concentration in health care administration; and a health care administration minor.

Michigan State University MSU’s Eli Broad College of Busi ness launched a revised version of its M.S. in supply chain management in January. The new format is a hybrid version that offers more of the program online and shorter classes on campus. Students may choose between two concentrated tracks, each allowing the opportunity to be completed within two years. The tracks are integrated supply chain management (requires 15 days on campus) and value chain creation (requires 12 days on campus).

Monroe County Community College This fall, MCCC will offer a new two-year associate of applied science degree with specialization in Web and mobile app development, and a year-long app development certificate option. The 29-credithour certificate program, as well as the associate degree, will be open to students who have been accepted to the school.

Oakland Community College OCC has established an agreement with Wayne State University that makes it easier for students to earn an associate degree at OCC while earning credit toward a business degree at WSU. OCC students are able to transfer up to 82 credit hours to Wayne State.

Oakland University Oakland’s School of Business Administration will offer a new master’s in information technology management this fall. Students will be able to choose between two new concentrations: business analytics and information security management. The business analytics concentration is also a new concentration option for other OU business students and is available as a minor to all OU students regardless of major. SBA students also will be able to evaluate local and national economic trends and statistics at OU’s new Southeastern Michigan Economic Data Center and take advantage of the Business Data Analysis Lab that includes 10 dual-screen Bloomberg financial terminals, a stock ticker, plasma display screens and presentation technology.

Rochester College Rochester College is offering an online B.S. in leadership with a management track. The courses are offered in an eight-week accelerat-

ed format. Up to 90 hours of transfer credits will be accepted, making it possible to complete the 120credit-hour degree in one year.

Schoolcraft College This fall, Schoolcraft is offering three new certificate tracks within its computer graphics technology program: 3-D and video graphics, Web and interactive media, and graphic arts. It also is offering a fouryear degree in culinary arts.

[UD MERCY]

The UniversityofDetroit Mercywill begin offering an MBA program downtown.

University of Detroit Mercy This fall, the UDM’s College of Business Administration will begin offering its AACSB-accredited MBA program in downtown Detroit. The early evening classes will be held on the law school’s Jefferson Avenue campus. A 50 percent tuition scholarship will be offered to applicants with a 600 or higher score on the GMAT. At the McNichols campus, investment and advanced investment courses will be offered in a state-ofthe-art financial markets lab featuring professional trading platforms, electronic ticker tapes and interactive tote boards with real-time data on bonds, stocks, currency exchange rates and related information. In addition, a new undergraduate concentration in business intelligence is being offered, and a business law minor is being developed.

University of Michigan-Ann Arbor UM’s Stephen M. Ross School of Business revamped its Bachelor of Business Administration curriculum last year. Called Multidisciplinary Exploration and Rigorous Guided Education, the program is designed to prepare undergraduate students to compete in a globalized business world. Students enter the new program in their sophomore year and it runs through their senior year. New features include a focus on the role of business in society, more study abroad opportunities and the integration of classroom and action-based learning.

University of MichiganDearborn This fall, UM-Dearborn will have a new undergraduate major in busiSee Next Page

20150601-SUPP--0043,0044,0045-RG1-CCI-CD_--

5/27/2015

9:45 AM

Page 3

CRAIN’S DETROIT BUSINESS // June 1, 2015

M45

SPECIAL REPORT: BUSINESS EDUCATION From Previous Page

ness studies that will be open as a second major to students not in the College of Business . The 30-credithour program combines foundational courses in business with the necessary analytical tools required for careers in management-related fields, with liberal arts. Also new this fall to undergraduates is a financial planning minor and three new concentrations: advanced financial accounting and reporting to accounting majors, and financial services and financial management to finance majors.

University of Michigan-Flint UM-Flint’s School of Manage ment will offer a new undergraduate major in entrepreneurship and innovation management this fall. The major will be housed in the new Hagerman Center for Entrepreneurship and Innovation that will also open in the fall.

Walsh College Walsh is offering students entering graduate programs two 11-week graduate gateway courses in place of taking an entrance exam, such as the GRE or GMAT. Also new is a data analytics minor in the BBA program; new concentrations in human resource management, international business and strategic management in the master of management program; a new collaborative course with the College for Creative Studies in creativity and innovation in the

M.S. marketing program; and the state-of-the-art Walsh Finance Lab, which has opened for students in the M.S. in finance program. Also new: Leadership-You, a sixsession program that teaches participants how to be great leaders and managers; and a seven-class Business 360 certificate program designed for people without a formal business education to introduce them to fundamental business concepts and tools needed in the working world.

making it less complicated for students to start and complete its MBA program.

We’re like you. All business.

Washtenaw Community College Among the new certificate programs offered this fall are machine tool setup and operation, machine tool programming, applied data science, programming for modern computing, and magnetic resonance imaging (post-associate certificate). Also, new associate degrees in automotive test technician and powertrain development technician will be offered.

Wayne County Community College District WCCCD’s new associate degree 60 credit-hour programs this fall include product development; prototyping (3-D printing); medical administrative specialist; anesthesia technology; and cybersecurity. A prototyping program will also available as a 30-hour certificate.

Wayne State University The WSU School of Business is

[WAYNE STATE UNIVERSITY]

Wayne State has a credit transferagreement with Oakland CommunityCollege. The school will offer students who meet certain criteria waivers for the GMAT and is supplementing the traditional 16-week semester model with a set of accelerated 12-, four- and even one-week courses. Students could earn an MBA in as short as one calendar year. The school also has established an agreement with Oakland Com munity College that makes it easier for students to earn an associate degree at OCC while earning credit toward a business degree at WSU. OCC students are able to transfer up to 82 credit hours to Wayne State. WSU has similar agreements with Schoolcraft College and Macomb Community College.

READY FOR A TAUBER TEAM?

At DeVos Graduate School, you’ll not only solve business challenges, you will uncover them. After all, true leadership means having the vision to solve real business challenges. Exercise your entrepreneurial spirit—and begin applying your knowledge immediately. With schedules that ﬁt your life, Northwood is all business. Business for Life.

800.622.9000 northwood.edu/graduate

Whether you’re a student or employer, learn how our graduate-level engineering and business team projects beneﬁt everyone involved with high-impact, high ROI projects such as: s s s s

Lean process design and implementation Manufacturing rationalization plan Strategic site assessment Strategic sourcing plan

Learn more at

s s s s

Plant ﬂoor layout New product/process development strategy Supply chain implementation plan Product complexity analysis

Last year Tauber Institute student teams showed sponsor companies how to streamline their operations and projected savings of more than $450 million.

Submission Deadline Project proposals are due December 1, 2015 for projects starting in summer 2016. Contact Jon Grice at gricej@umich.edu or (734) 647-2220.

tauber.umich.edu

Find out more at Spotlight! on September 18, when 35 teams will present the results of their 2015 projects at the Tauber Institute’s premier annual event at the Sheraton in Ann Arbor, Michigan.

DBpageAD_DBpageAD.qxd 5/20/2015 11:37 AM Page 1

Merging of Minds Navigating and completing mergers and acquisitions begins with assembling the right multidisciplinary team. From due diligence to closing documents, Warner Norcross & Judd has the expertise and experience to handle every aspect of your deal. Let Warnerâ&#x20AC;&#x2122;s team work for you. We make M&A manageable. Learn more about our M&A practice and other representative experience at WNJ.com/M-and-A

A BETTER PARTNERSHIP ÂŽ By providing discerning and proactive legal counsel, we build a better partnership with clients.

F=9 R^\ ~ '%% $"" " '

20150601-SUPP--0047-RG1-CCI-CD_--

5/27/2015

5:55 PM

Page 1

CRAINâ&#x20AC;&#x2122;S DETROIT BUSINESS // June 1, 2015

CRAIN'S LIST: PRIVATE 200

M47

Ranked by 2014 revenue

Company Address Phone, website

Top executive

1 2

FCA US LLC, Auburn Hills 48326-2766 (248) 576-5741; www.fcanorthamerica.com

Sergio Marchionne chairman and CEO

$83,057.0

$72,144.0

15.1%

30,580

77,800

Automobile manufacturer

Penske Corp., Bloomfield Hills 48302-0954 (248) 648-2000; www.penske.com

Roger Penske chairman

26,350.0

23,100.0

14.1

47,716

Retail automotive, truck leasing and logistics, transportation components, motorsports racing

International Automotive Components (IAC), Southfield 48034 (248) 455-7000; www.iacgroup.com

James Kamsickas president and CEO

5,900.0

5,200.0

13.5

993

32,000

Global tier-one supplier of automotive components and systems, including interior and exterior trim

Guardian Industries Corp., Auburn Hills 48326-1714 Ron Vaupel 5,600.0 B president and CEO (248) 340-1800; www.guardian.com Dan Gilbert Rock Ventures, Detroit 48226 5,100.0 C chairman and (800) 251-9080 founder Bill Kozyra TI Automotive Ltd., Auburn Hills 48326 3,300.0 chairman, president (248) 494-5000; www.tiautomotive.com and CEO Christopher Ilitch Ilitch companies, Detroit 48201 3,300.0 president and CEO (313) 471-6600; www.ilitchcompanies.com

5,600.0 B

0.0

17,000

Manufacturer of glass, automotive and building products

3,600.0 C

41.7

12,350

23,500

Umbrella organization managing a portfolio of companies, investments and real estate.

3,200.0

3.1

425

Global tier-one supplier of automotive fluid systems technology.

3,100.0

6.5

8,609

23,374

Little Caesars Pizza, Detroit Red Wings, Blue Line Foodservice Distribution, Champion Foods, Olympia Entertainment, Uptown Entertainment, Olympia Development, Little Caesars Pizza Kit Fundraising Program and Ilitch Holdings Automotive supplier of interior systems, closure systems, roof systems, and motors and electronics

Rank

5 6 6

Revenue Revenue ($000,000) ($000,000) Percent 2014 2013 change

Detroit area Worldwide employees employees Jan. 2015 Jan. 2015 Type of business

2,500.0

2,200.0

13.6

300

12,507

Plastipak Holdings Inc., Plymouth 48170 (734) 455-3600; www.plastipak.com

Lon Offenbacher president, CEO and Founder William Young president and CEO

2,405.8

2,295.3

4.8

600

4,700

Bridgewater Interiors LLC, Detroit 48209 (313) 842-3300; www.bridgewater-interiors.com

Ronald Hall Sr. president and CEO

2,281.5

2,179.5

4.7

Automotive seating/interiors

Moroun family holdings, Warren 48089 (586) 939-7000

NA D

2,235.1 C

1,890.0 C

18.3

Ambassador Bridge and various trucking and logistics companies

Soave Enterprises LLC, Detroit 48207 (313) 567-7000; www.soave.com

Anthony Soave president and CEO

1,970.0

1,796.0

9.7

762

1,524

Meridian Health Plan Inc., Detroit 48226 (313) 324-3700; www.mhplan.com

David Cotton president and CEO

1,945.0

1,164.7

67.0

1,000

The Suburban Collection, Troy 48084 (877) 471-7100; www.suburbancollection.com

David Fischer chairman and CEO

1,914.5

1,599.3

19.7

1,913

1,970

Dura Automotive Systems LLC/Global Automotive Systems LLC, Auburn Hills 48326 (248) 299-7500; www.duraauto.com

Lynn Tilton CEO

1,750.0

1,649.0

6.1

785

Control systems (shifters, parking brakes, pedals, cables, hardware); exterior systems (glass systems, exterior trim systems); structural systems (lightweight body structures, door structures)

Sherwood Food Distributors LLC, Detroit 48228 (313) 659-7300; www.sherwoodfoods.com

1,740.8

1,539.9

13.0

330

300

Wholesale food distributor

Atlas Oil Co. , Taylor 48180 (800) 878-2000; www.atlasoil.com

Earl Ishbia co-chairman, president and CEO Sam Simon chairman and CEO

1,628.3

1,848.7

-11.9

171

480

Petroleum distribution, total fuel needs

1,625.0

1,425.0

14.0

236

1,606

Specialty insurance, reinsurance, premium financing, loss control and premium audits

(248) 932-9000; www.kaufmanfinancialgroup.com

Alan Jay Kaufman chairman, president and CEO

Walbridge Aldinger Co., Detroit 48226 (313) 963-8000; www.walbridge.com

John Rakolta Jr. chairman and CEO

1,550.0

1,307.0

18.6

308

1,000

Barton Malow Co., Southfield 48034 (248) 436-5512; www.bartonmalow.com

Ryan Maibach president

1,498.0

1,145.5

30.8

920

1,704

Belfor Holdings Inc. (General Contractor), Birmingham 48009 (248) 594-1144; www.belfor.com

Sheldon Yellen CEO

1,453.9 E

1,313.8

10.7

1,356

6,959

Construction: general contracting, design-build, construction management, engineer/procure/construct, virtual design, digital mapping. General contracting, construction management, design/build, engineer-procure-construct, integrated project delivery, selfperform services: civil, concrete, rigging and interiors NA

22 23

Key Safety Systems Inc., Sterling Heights 48314 (586) 726-3800; www.keysafetyinc.com

Jason Luo president and CEO

1,345.0

1,167.0

15.3

300

10,200

Airbags, seatbelts, steering wheels, electronics

Wolverine Packing Co., Detroit 48207 (313) 259-7500; www.wolverinepacking.com

Jim Bonahoom president

1,213.0

1,060.0

14.4

475

Wholesale meat packer and processor; wholesale meat, poultry and seafood distributor

Innovation Ventures LLC (Living Essentials LLC, 5-Hour Energy), Farmington Hills 48331 (248) 960-1700; www.5hourenergy.com

Manoj Bhargava CEO

1,200.0

0.0

Maker of energy drinks

Syncreon Global Holdings Ltd., Auburn Hills 48326 (248) 377-4700; www.syncreon.com

Brian Enright CEO

1,100.0

1,100.0 C

0.0

Victory Automotive Group Inc., Canton Township 48188 (734) 495-3500; www.victoryautomotivegroup.com

Jeffrey Cappo president

1,033.5 F

830.1 F

24.5

Global provider of advanced supply chain services that offers a full range of third- and fourth-party logistics services in an asset-light business model Automotive dealerships

27 28

Kenwal Steel Corp., Dearborn 48126 (313) 739-1000; www.kenwal.com

Kenneth Eisenberg chairman and CEO

899.2

904.3

-0.6

349

Steel service center

Piston Automotive LLC, Redford 48239 (313) 541-8674; www.pistongroup.com

Vincent Johnson chairman and CEO

838.2

684.0

22.6

302

533

Automotive supplier

Inteva Products LLC, Troy 48084 (248) 655-8886; www.intevaproducts.com

9 10 11 12 13 14

H.W. Kaufman Financial Group/ Burns & Wilcox, Farmington Hills 48334

Manufacturer of rigid plastic containers for the consumer products industry

Diversified management holding company Government programs health insurance Automobile dealerships

This list of privately held companies is an approximate compilation of the largest companies in Wayne, Oakland, Macomb, Livingston and Washtenaw counties that do not have stock traded on a public exchange. It is not a complete listing but the most comprehensive available. Crain's estimates are based on industry analysis and benchmarks, news reports and a wide range of other sources. Unless otherwise noted, information was provided by the companies. Companies with headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. Actual revenue figures may vary. NA = not available.

B Forbes estimate. C Crain's estimate. D There is not a holding company for the Moroun family businesses. Some are public companies controlled by Manuel and/or Matthew Moroun. Others are owned privately by the Moroun family. E In 2014, 92 percent of revenue for Belfor, a disaster recovery firm, was from construction management. Continued on Page M49 F Automotive News.

DBpageAD_DBpageAD.qxd 5/20/2015 4:17 PM Page 1

Align your personal and professional plans today. For a stronger tomorrow.

FirstMerit PrivateBank and Commercial Banking For Jeff, managing personal and business finances on his own was challenging. But with the support of his FirstMerit Bank team of advisors, he was able to use their Treasury Management services to optimize his cash flow, Retirement Planning services* to benefit his employees, and Succession Planning services to ensure his company’s future. So now, Jeff has the support he needs to reach his maximum potential — both personally and professionally.

TO L E A R N MOR E, C O N T A C T :

David Lochner, President, Commercial Banking, FirstMerit Michigan, at 248-228-1620 or david.lochner@ﬁrstmerit.com. Ken Duetsch II, Senior Vice President, PrivateBank, at 248-430-1255 or ken.duetsch@ﬁrstmerit.com.

Member FDIC Deposit and loan products are offered through FirstMerit Bank, N.A. Loans are subject to credit approval. *Non-deposit trust products are not insured by the FDIC, are not deposits or other obligations of FirstMerit Bank, N.A. or any of its afﬁliates, are not guaranteed by FirstMerit Bank or any of its afﬁliates, and are subject to investment risks, including possible loss of the principal invested.

ﬁrstmerit.com 2423_FM15

20150601-SUPP--0049-RG1-CCI-CD_--

5/27/2015

5:55 PM

Page 1

CRAINâ&#x20AC;&#x2122;S DETROIT BUSINESS // June 1, 2015

CRAIN'S LIST: PRIVATE 200 From PageCompany M47 Address Rank Phone, website

29 30 31 32 33 34 35 36 37 38 39

$824.8

$774.0

6.6%

209

6,908

Barrick Enterprises Inc., Royal Oak 48073 (248) 549-3737; www.barrickent.com

Robert Barrick president

779.7

798.9

-2.4

Petroleum retailer and wholesaler

Orleans International Inc., Farmington Hills 48334 (248) 855-5556; www.orleansintl.com

Earl Tushman president

758.4

631.0

20.2

Meat importer

The Diez Group, Dearborn 48126 (313) 491-1200; www.thediezgroup.com

Gerald Diez chairman and CEO

720.0

730.0

-1.4

Aluminum and Steel Sales, Processing and Warehousing Companies

701.4

639.6

9.7

368

720

Property and casualty insurance company

689.0

664.0

3.8

290

750

Electric/electronics distributor

667.0 B

488.0 B

36.7

Transportation services, truck leasing and logistics, diesel-engine manufacturing, automotive sales and services

664.0

600.0

10.7

445

Apparel manufacturer

663.3

577.1

14.9

989

Automobile dealerships

620.0

555.0

11.7

1,603

3,400

Retail home furnishings

604.0

570.0

6.0

453

2,481

Designs, manufactures and distributes driveline systems and service parts

Bill Hodges executive vice president Thom Lipari president and CEO

590.0

485.0

21.6

415

Heavy equipment dealer providing sales of new and used equipment as well as rental and parts and service.

555.0

540.0

2.8

503

938

Wholesale food distribution

539.0

513.0

5.1

446

1,520

Automotive manufacturer, assembler, warehouse sequencer, aerospace warehousing and logistics

United Road Services Inc., Romulus 48174 (734) 947-7900; unitedroad.com

William Pickard, chairman, CEO; Sylvester Hester, vice chairman Kathleen McCann president and CEO

530.2

333.0

59.2

235

1,725

Vehicle logistics for vehicle manufacturers, remarketers, auctions, dealers and internet vehicle transactions nationally

McKinley Inc., Ann Arbor 48104 (734) 769-8520; www.mckinley.com

Albert Berriz, CEO; Matt Mason, senior VP

520.0

500.0

4.0

1,600

Invest and manage residential and commercial real estate

PVS Chemicals Inc., Detroit 48213 (313) 921-1200; www.pvschemicals.com

James B. Nicholson president and CEO

518.3

549.3

-5.6

255

Manufacturer, marketer and distributor of industrial chemicals

RKA Petroleum Cos. Inc., Romulus 48174 (734) 946-2199; www.rkapetroleum.com

Kay Albertie managing shareholder

506.9

613.8

-17.4

Wholesale distributor of gasoline, diesel fuel, ethanol, biodiesel, Jet A and Jet A1 products; hauler of crude oil, common carrier

The Harvard Drug Group LLC, Livonia 48150 (734) 743-6000; www.theharvarddruggroup.com

Terrance Haas CEO

500.0

462.3

8.1

Pharmaceutical distributor, wholesaler and manufacturer, compounding, vet supply

U.S. Farathane Corp. C, Auburn Hills 48326 (248) 754-7000; www.usfarathane.com

Andrew Greenlee president & CEO

500.0

402.0

24.4

2,077

2,668

Plastic injection molder, extruder, thermal compression molder

MSX International Inc., Detroit 48226 (248) 829-6300; www.msxi.com

Frederick Minturn president and CEO

497.0

450.0

10.4

1,600

6,000

Business process outsourcing, training, and human capital managed service provider.

Southfield Dodge Chrysler Jeep Ram, Southfield 48034 (248) 354-2950; southfieldchrysler.com

Paul Steel president

477.4

368.7

29.5

386

Automobile dealerships

General RV Center Inc., Wixom 48393 (248) 349-0900; www.generalrv.com

453.0

355.0

27.6

550

Recreational vehicle and trailer dealership

Camaco LLC, Farmington Hills 48331 (248) 442-6800; www.camacollc.com

Robert Baidas CEO and Loren Baidas president and chairman Arvind Pradhan president and CEO

450.0

410.0

9.8

2,000

Roush Enterprises D, Livonia 48150 (734) 779-7006; www.roush.com

Evan Lyall CEO

440.0

402.0

9.5

Plante Moran PLLC, Southfield 48037 (248) 352-2500; www.plantemoran.com

Gordon Krater managing partner

433.1

411.3

5.3

1,013

2,141

Prestige Automotive LLC, St. Clair Shores 48080 (586) 773-2369; www.prestigeautomotive.com

Gregory Jackson chairman and CEO

400.1

414.3

-3.4

250

Automobile dealerships, real estate and insurance

Trico Products Corp., Rochester Hills 48309 (248) 371-1700; www.tricoproducts.com

Lou Braga president and CEO

396.0 E

396.0 F

0.0

Original equipment manufacturer, original equipment supplier and aftermarket windshield wiper blades and systems

Amerisure Mutual Insurance Co., Farmington Hills 48331 Gregory Crabb president and CEO (248) 615-9000; www.amerisure.com Donald Slominski Jr. McNaughton-McKay Electric Co., Madison Heights president and CEO 48071-4134 (248) 399-7500; www.mc-mc.com Central Transportation International Inc. , Warren 48089 Manuel Moroun owner (586) 939-7000; www.centraltransportint.com Carhartt Inc., Dearborn 48126 (313) 271-8460; www.carhartt.com

Lipari Foods LLC, Warren 48089 (586) 447-3500; www.liparifoods.com

52 53 54 55 56

Mark Valade chairman and CEO

LaFontaine Automotive Group, Highland Township 48357 Michael LaFontaine, owner, president; (248) 887-4747; www.thefamilydeal.com Maureen LaFontaine, owner, VP Archie Van Elslander, Art Van Furniture Inc., Warren 48092 chairman; Kim Yost, (586) 939-0800; www.artvan.com CEO Kenneth Hopkins Neapco Holdings LLC, Belleville 48111 president and CEO (734) 447-1372; www.neapco.com

Detroit Revenue Revenue area Worldwide ($000,000) ($000,000) Percent employees employees 2014 2013 change Jan. 2015 Jan. 2015 Type of business

Henniges Automotive, Auburn Hills 48326 (248) 340-4100; www.hennigesautomotive.com

Michigan CAT, Novi 48375 (248) 349-4800; www.michigancat.com

43 44 45 46 47 47 49 50

Ranked by 2014 revenue

Douglas DelGrosso CEO

40 42

Top executive

M49

Global Automotive Alliance LLC, Detroit 48210 (313) 297-6676

Weatherstrip seals, glass encapsulation, modular sealing systems and anti-vibration components

Full-service supplier of automotive seat structure assemblies Engineering, product development, and integration specialists; development and manufacturing of performance vehicles, aftermarket components and alternative fuel systems for fleet applications Accounting and management consulting firm

B From Journal of Commerce. C Acquired by the private equity firm The Gores Group on Dec. 23, 2014. D Figures do not include motorsports employee counts or revenue of Roush Fenway. E Crain's estimate. F Figure is an estimate from the Automotive Aftermarket Suppliers Association Top 100 list.

Continued on Page M50

20150601-SUPP--0050-RG1-CCI-CD_--

5/27/2015

5:55 PM

Page 1

CRAINâ&#x20AC;&#x2122;S DETROIT BUSINESS // June 1, 2015

M50

CRAIN'S LIST: PRIVATE 200

From Page M49

Ranked by 2014 revenue Detroit Revenue Revenue area Worldwide ($000,000) ($000,000) Percent employees employees 2014 2013 change Jan. 2015 Jan. 2015 Type of business

Company Address Phone, website

Top executive

57 58 59

ABC Appliance Inc., Pontiac 48343 (248) 335-4222; www.abcwarehouse.com

Gordon Hartunian chairman

$394.0

$395.0

-0.3%

Appliances, electronics and car audio, bedding and furniture

RevSpring Inc., Wixom 48393 (248) 567-7300; www.revspringinc.com

Timothy Schriner president and CEO

388.0

365.7

6.1

140

450

Business process outsourcing, accounts receivable management

Belle Tire Distributors Inc., Allen Park 48101 (313) 271-9400; www.belletire.com

Don Barnes Jr. chairman

360.0

350.0 B

2.9

1,500

Retailer of tires and automotive services

United Shore Financial Services LLC, Troy 48083 (855) 888-8737; www.unitedshore.com

355.6

1,133

61 62 63 64

Fisher & Co. Inc., St. Clair Shores 48082 (586) 746-2000; www.fisherco.com

Kip Kirkpatrick CEO and Mat Ishbia president and CEO Alfred Fisher III CEO

343.0

260.0

31.9

665

Automotive seating systems and components

Stewart Management Group Inc., Harper Woods 48225 (313) 432-6200; www.gordonchevrolet.com

Gordon Stewart president

342.2

320.8

6.7

100

426

Automobile dealerships

Hungry Howie's Pizza Inc., Madison Heights 48071 (248) 414-3300; www.hungryhowies.com

Steve Jackson president and CEO

327.0 C

296.5

10.3

100

Pizza franchisor

321.0

285.0

12.6

178

General contractor, machinery installer, building interiors, concrete

315.6

221.0

42.8

250

General contractor and construction manager that does excavation, structural and slab concrete, structural steel fabrication and erection, other Automotive dealerships

Rank

Commercial Contracting Group Inc., Auburn Hills 48326 William Pettibone chairman (248) 209-0500; www.cccnetwork.com Joseph Aristeo Aristeo Construction Co., Livonia 48150 president (734) 427-9111; www.aristeo.com

Elder Automotive Group, Troy 48083 (248) 585-4000; www.elderautogroup.com

Tony Elder president

303.3

343.6

-11.7

196

375

Altair Engineering Inc., Troy 48083 (248) 614-2400; www.altair.com

James Scapa chairman and CEO

300.0

251.0

19.5

737

Great Expressions Dental Centers PC, Bloomfield Hills 48304 (248) 203-1100; greatexpressions.com

Rich Beckman CEO

276.8

270.6

2.3

651

2,397

Alta Equipment Co., Wixom 48393 (248) 449-6700; www.altaequipment.com

Steven Greenawalt CEO

275.0

208.0

32.2

300

Dialog Direct D, Highland Park 48203 (313) 957-5100; www.dialog-direct.com

274.8

188.1

46.1

1,518

4,619

272.0

260.0

4.6

222

386

Mortgage banking

Global software and technology, engineering simulation, advanced computing, enterprise analytics and product development Offers a complete range of dental care, including general and preventive care, cosmetic, orthodontic and specialty dental services Heavy construction equipment, material handling equipment, industrial equipment, cranes

Contractors Steel Co., Livonia 48150 (734) 464-4000; www.contractorssteel.com

Peter Schmitt chief Strategy and Innovation officer Donald Simon president and CEO

Strategic Staffing Solutions Inc., Detroit 48226 (313) 596-6900; www.strategicstaff.com

Cynthia Pasky president and CEO

264.0

238.0

10.9

802

2,700

Motor City Electric Co., Detroit 48213 (313) 921-5300; www.mceco.com

260.5

272.9

-4.5

611

849

Acro Service Corp., Livonia 48152 (734) 591-1100; www.acrocorp.com

Dale Wieczorek chairman, president and CEO Ron Shahani president and CEO

260.2

216.8

20.0

1,714

4,791

75 76

Detroit Lions Inc., Allen Park 48101 (313) 216-4000; www.detroitlions.com

Martha Ford owner

254.0 E

248.0 F

2.4

Staff augmentation (IT, engineering, office support), outsourcing and IT and engineering consulting, application development and enablement, database and Web design and development National Football League franchise

John E. Green Co., Highland Park 48203 (313) 868-2400; www.johnegreen.com

Peter Green chairman

250.0

0.0

120

Mechanical and fire protection contractor

Roncelli Inc., Sterling Heights 48312 (586) 264-2060; www.roncelli-inc.com

Gary Roncelli chairman and CEO and Thomas Wickersham president and COO Derek Stevens CEO

247.0

223.0

10.8

230

Construction services, program management, construction management, design and build

244.0

224.0

8.9

Automotive supplier

243.3

216.5

12.4

1,429

2,279

238.6

231.0

3.3

508

Dialog Direct helps brands manage and personalize multichannel, multi-touch customer journeys using data-driven marketing and customer engagement solutions. Steel service center Consulting and staff augmentation services, vendor management programs, executive search services, call center tech and a IT development center Electrical contractor

Cold Heading Co., Warren 48089 (586) 497-7000; www.coldheading.com

The Bartech Group Inc., Southfield 48034 (248) 208-4300; www.bartechgroup.com

The Ideal Group Inc., Detroit 48209 (313) 849-0000; www.weareideal.com

David Barfield, chairman, president and CEO Frank Venegas Jr. chairman and CEO

Snethkamp Automotive Family, Highland Park 48203 (313) 868-3300; www.snethkampauto.com

Mark Snethkamp president

235.0

198.0

18.7

234

General contracting, specialized steel manufacturing and distribution of protective barrier products, global supply chain management, other Automobile dealerships

Jim Riehl's Friendly Automotive Group Inc., Warren 48093 (586) 979-8700; www.jimriehl.com

James Riehl Jr. president and CEO

231.7

184.5

25.6

Automobile dealership

Crain Communications Inc., Detroit 48207 (313) 446-6000; www.crain.com

Keith Crain chairman

230.0

227.2

1.2

260

805

Publisher of business, trade and consumer publications and related websites

Develops and delivers workforce management solutions.

B Company estimate. C 2014 system wide sales D Glencoe Capital Michigan LLC, owner of Budco Holdings Inc., Dialogue Marketing Inc. and Novo 1 Inc., combined the three entities Jan. 30, 2014 under the name DialogDirect Inc. E Forbes estimate. F Crain's estimate. Continued on Page M51

20150601-SUPP--0051-RG1-CCI-CD_--

5/27/2015

5:57 PM

Page 1

CRAINâ&#x20AC;&#x2122;S DETROIT BUSINESS // June 1, 2015

CRAIN'S LIST: PRIVATE 200

From Page M50 Company Address Rank Phone, website

Top executive

M51

Ranked by 2014 revenue Detroit Revenue Revenue area Worldwide ($000,000) ($000,000) Percent employees employees 2014 2013 change Jan. 2015 Jan. 2015 Type of business

Vision Information Technologies Inc. (VisionIT), Detroit 48202 (877) 768-7222; www.visionit.com

David Segura,CEO; Christine Rice. president

$219.0

$190.0

15.3%

Mobile application solutions, managed IT services, and talent management solutions

Chase Plastic Services Inc., Clarkston 48346 (248) 620-2120; www.chaseplastics.com

Kevin Chase, president; Carole Chase, VP Jeffrey Hausman, Detroit office director; Carl Roehling. president, CEO Kerry Whelan president

218.0

200.0

9.0

107

Specialty engineering thermoplastics distributor

197.2

163.0

21.0

291

859

Architecture, engineering and planning

183.9

162.8

13.0

138

Automotive dealership sales and service

180.3

161.2

11.9

150

776

Global retail marketing consulting with a scientific approach

178.3

180.0

-0.9

306

894

Law firm

SmithGroupJJR Inc., Detroit 48226 (313) 983-3600; www.smithgroupjjr.com

Buff Whelan Chevrolet, Sterling Heights 48313 (586) 939-7300; www.buffwhelan.com

Urban Science Applications Inc., Detroit 48243 (313) 259-9900; www.urbanscience.com

89 90

Dykema Gossett PLLC, Detroit 48243 (313) 568-6800; www.dykema.com

James Anderson, president, founder, CEO Peter Kellett chairman and CEO

Ghafari Inc., Dearborn 48126 (313) 441-3000; www.ghafari.com

Yousif Ghafari chairman

173.8

125.6

38.3

737

1,058

Architecture, engineering, construction services, manufacturing engineering, consulting, professional staffing

The Macomb Group Inc., Sterling Heights 48312 (586) 274-4100; www.macombgroup.com

William McGivern Jr., CEO; Keith Schatko, VP

170.5

131.9

29.3

135

285

Pat Milliken Ford Inc., Redford Township 48239-1492 (313) 255-3100; www.patmillikenford.com

Bruce Godfrey chairman

165.0

153.0

7.8

118

Distributor of pipe, valves, fittings, heating and cooling, control and instrumentation, boilers, pumps repair, steam products, sanitary piping products, hose assemblies, fire protection and AWWA products Automobile dealership

Fori Automation Inc., Shelby Township 48315 (586) 247-2336; www.foriauto.com

161.0

179.0

-10.1

550

94 95 96 97

Royal Oak Ford/Briarwood Ford, Royal Oak 48067 (248) 548-4100; www.royaloakford.com

Mike Beck, VP operations; Paul Meloche, VP sales Eddie Hall Jr. president

157.7

148.9

5.9

176

Vesco Oil Corp., Southfield 48076 (248) 557-1600; www.vescooil.com

Marjory Epstein Chairperson

155.2

144.8

7.2

185

203

Distributor of auto and industrial lubricants and chemicals, auto aftermarket products

1st Source Servall Inc., Centerline 48105 (586) 754-9952; www.1stservall.com

Kim Adler president

152.0

150.0

1.3

Distributor of appliance parts

Bill Perkins Automotive Group, Eastpointe 48021 (586) 775-8300; www.merollischevy.com

Bill Perkins president

146.9

134.3

9.4

136

Automobile dealerships

146.1

133.1

9.7

220

Automotive dealerships

144.0 B

152.0

-5.3

Detroit Pistons, The Palace of Auburn Hills, DTE Energy Music Theatre

98 99

Jeffrey Tamaroff Automotive Family, Southfield 48034-1928 Marvin Tamaroff, chairman emeritus; (248) 353-1300; www.tamaroff.com Jeffrey Tamaroff chairman, CEO Dennis Mannion Palace Sports & Entertainment LLC, Auburn Hills 48326 president and CEO (248) 377-0100; www.palacenet.com

Global assembly, testing, and welding equipment for the automotive, aerospace, military agriculture, recreational vehicle, and alternative-energy industries Automobile dealership

100

Milosch's Palace Chrysler-Jeep-Dodge Inc., Lake Orion 48359 (248) 393-2222; www.palacecjd.com

Donald Milosch president

142.3

112.2

26.8

137

Automobile dealership

101

George W. Auch Co., Pontiac 48341 (248) 334-2000; www.auchconstruction.com

140.3

134.1

4.6

General contractor and construction manager

102

Rush Trucking Corp., Wayne 48184 (800) 526-7874; www.rushtrucking.com

Vincent DeLeonardis president and CEO Andra Rush, chairman; Gregory Humes, president Todd Sachse, CEO, founder; Steve Berlage, president, COO John Hern CEO

137.7

111.0

24.0

350

672

Motor carrier, logistics management

135.2

138.0

-2.0

104

125

General contracting, construction management, design/build and tenant coordination

135.0

127.4

6.0

229

608

Legal services; law firm

135.0

132.0

2.3

300

Retail, institutional, foodservice baking mixes

134.0

104.5

28.2

Auto dealership

103

Sachse Construction and Development Co., LLC, Detroit 48226 (313) 481-8200; www.sachse.net

104

Clark Hill PLC, Detroit 48226 (313) 965-8300; www.clarkhill.com

104

Chelsea Milling Company, Chelsea 48118 (734) 475-1361; www.jiffymix.com

106 107

Ray Laethem Inc. , Grosse Pointe 48224 (313) 886-1700; www.raylaethem.com

Howdy Holmes chairman, president and CEO Jeff Laethem president

James Group International Inc., Detroit 48209 (313) 841-0070; www.jamesgroupintl.com

John James chairman and CEO

133.0

125.0

6.4

135

158

Global supply chain management providing services in IT, export/ import logistics, assembly, consolidation/deconsolidation

108

Humanetics Innovative Solutions Inc., Plymouth 48170 (734) 451-7878; www.humaneticsatd.com

130.0

125.0

4.0

215

525

109 110 111

Hatch Stamping Co., Chelsea 48118 (734) 475-8628; www.hatchstamping.com

Christopher O'Connor president and CEO Ross Gatlin chairman and CEO

129.0

133.0

-3.0

350

725

Designs and manufactures safety equipment, including sophisticated crash test dummies, software modeling and related test equipment Manufacturing

Dearborn Mid-West Co., Taylor 48180 (734) 288-4400; www.dmwcc.com

Jeff Homenik president

128.0

152.9

-16.3

143

177

Material Handling Systems, Construction, Tooling/Equipment Installation, Plant Maintenance Services, Life-Cycle Improvement

Avis Ford Inc., Southfield 48034 (248) 355-7500; www.avisford.com

Walter Douglas Sr. chairman and CEO

125.7

126.1

-0.3

106

Automobile dealership

Phillips Service Industries Inc., Livonia 48150 (734) 853-5000; www.psi-online.com

W. Scott Phillips president and CEO

122.0

121.0

0.8

Defense systems, homeland security, aircraft components, providers of direct manufacturing technology, welding machines, rugged electronics, wireless networks, automated assembly systems, repair services, uninterruptable power supplies

112

B Forbes estimate.

Continued on Page M52

20150601-SUPP--0052-RG1-CCI-CD_--

5/27/2015

5:57 PM

Page 1

CRAINâ&#x20AC;&#x2122;S DETROIT BUSINESS // June 1, 2015

M52

CRAIN'S LIST: PRIVATE 200

From Page M51

Ranked by 2014 revenue Detroit Revenue Revenue area Worldwide ($000,000) ($000,000) Percent employees employees 2014 2013 change Jan. 2015 Jan. 2015 Type of business

Company Address Phone, website

Top executive

113

Village Ford Inc., Dearborn 48124 (313) 565-3900; www.villageford.com

James Seavitt president and CEO

$120.4

$103.0

16.9%

158

Automotive dealership

114

Gorno Automotive Group, Woodhaven 48183 (734) 676-2200; www.gornoford.com

118.5

110.4

7.4

Automobile dealership

115 115

Technical Training Inc. (TTi Global), Rochester Hills 48309 (248) 853-5550; www.tti-global.com

Ed Jolliffe president and general manager Lori Blaker president and CEO

110.0

118.5

-7.2

2,000

Garden Fresh Salsa Co. Inc., Ferndale 48220 (248) 336-8486; www.gardenfreshsalsa.com

Jack Aronson president

110.0

0.0

457

Food manufacturer

108.9

100.6

8.3

Distributor of seals and packings; manufacturer of gaskets

108.1

76.6

41.0

170

400

Industrial manufacturing group, incorporating fabrication, design, assembly, logistics, transport and IT.

105.0

111.8

-6.1

Distributes imaging/printer supplies, develops IT strategies for clients and supports back-end connectivity with XML feeds, EDI integration and an e-commerce platform

105.0

92.7

13.3

206

Snack food manufacturing and distribution

Rank

Staffing, outsourcing and training

119

Roger Zatkoff Co. (Zatkoff Seals & Packings), Farmington Hills Gary Zatkoff president and CEO 48335 (248) 478-2400; www.zatkoff.com Gerald Gentile Deshler Group, Inc., Livonia 48150 VP Information (734) 525-9100; www.deshlergroup.com Technology Joseph Diversified Computer Supplies Inc., Ann Arbor 48108 Hollenshead (800) 766-5400; www.dcsbiz.com chairman, president and CEO Nick Nicolay Kar Nut Products Co., Madison Heights 48071 president and CEO (248) 588-1903; www.karsnuts.com

121

National Business Supply Inc. (NBS Commercial Interiors), Troy 48083 (248) 823-5400; www.yourNBS.com

Richard Schwabauer president

104.0

91.3

13.9

160

Commercial furnishing, audio visual distributor

122 123 124 125 126 126

DeMaria , Novi 48374-1305 (248) 348-8710; www.demariabuild.com

Joseph DeMaria Jr. president

100.1

101.6

-1.5

140

General contracting, design build, construction management, program management

Wolverine Truck Sales Inc., Dearborn 48120 (313) 849-0800; www.wolverinetruckgroup.com

Lynn Terry president

98.2

85.7 B

14.6

124

Truck sales, parts and service

Roseville Chrysler Jeep Inc., Roseville 48066 (586) 859-2500; www.mikeriehls.com

Michael Riehl president

96.3

76.7

25.6

109

Automobile dealership

The Crown Group Co., Warren 48091 (586) 575-9800; www.thecrowngrp.com

Frank Knoth president and CEO

94.5

68.4

38.2

Applies coatings to metal and plastic products; module-assembly work; sequencing, warehousing

Edwards Brothers Malloy Inc., Ann Arbor 48103 734-665-6113; www.edwardsbrothersmalloy.com

John Edwards president and CEO

94.0

100.4

-6.3

Book printer and binder

FutureNet Group Inc., Detroit 48223 (313) 544-7117; www.futurenetgroup.com

Perry Mehta president and CEO

94.0

100.0

-6.0

180

252

Construction, IT, Environment

128

Auburn Pharmaceutical Co., Troy 48083 (248) 526-3700; auburngenerics.com

92.0

67.0

37.3

Distributor of generic pharmaceuticals

129

Load One Transportation & Logistics, Taylor 48180 (734) 947-9440; www.load1.com

Jeffrey Farber chairman, president and CEO John Elliott CEO

91.2

74.3

22.8

587

130

Devon Industrial Group, Detroit 48226 (313) 221-1550; www.devonindustrial.com

David Burnley president

90.8

118.5

-23.4

131

Danlaw Inc., Novi 48375 (248) 476-5571; www.danlawinc.com

90.0

58.0

55.2

147

132 133 134

Guardian Alarm Co., Southfield 48075 (248) 423-1000; www.guardianalarm.com

Raju Dandu chairman and CEO Douglas Pierce CEO

Air charter, ground expedite, truckload, partial truckload, flatbed, drop-deck flats, curtainside flatbeds, truckload and expedite brokerage Provides construction management, general contracting, program management, design build, pre-construction and decommissioning services Cloud-based, connected-vehicle telematics solutions and embedded electronics to OEMs and tier-one suppliers

89.7

85.6

4.8

1,030

1,137

Madison Electric Co., Warren 48093-1047 (586) 825-0200; www.madisonelectric.com

Brett Schneider president

88.0

79.2

11.2

155

Electrical, electronic and automation distributor

Van Pelt Corp. (Service Steel), Detroit 48212 (313) 365-3600; www.servicesteel.com

Roger Van Pelt president and CEO

86.5

98.5

-12.2

285

Steel distributor

135

TransNav Technologies Inc., New Baltimore 48047 (586) 716-5600; www.transnav.com

Gerrit Vreeken president

85.0 C

81.0 C

4.9

135

BullsEye Telecom Inc., Southfield 48033 (248) 784-2500; www.bullseyetelecom.com

85.0

77.0

10.4

183

233

Proper Group International Inc., Warren 48089 (586) 779-8787; www.propergroupintl.com

William Oberlin chairman and CEO Geoffrey O'Brien CEO

81.0

74.0

9.5

278

T.H. Marsh, Royal Oak 48073 (248) 586-4130; www.thmarsh.com

Ryan Marsh president and CEO

80.5

71.0

13.4

Trading and manufacturing company specializing in product design and development, tooling fabrication, injection molding and decorating and assembly Integrated telecom and internet services to small, medium singlelocation businesses and large Fortune 1000 enterprises with multiple locations Plastic injection molds, injection molded parts and assembly, polyurethane and skin form tooling, microcellular foam tooling, vario-therm tooling, rapid prototyping and Web-based management of tooling and process data T.H. Marsh is a construction company providing general contracting, construction management,and advisory services.

National Food Group Inc., Novi 48377-2454 (800) 886-6866; www.nationalfoodgroup.com

Sean Zecman president and CEO

76.4

60.5

26.3

Food distribution, opportunity buys, commodity processing

Arrow Uniform-Taylor LLC, Taylor 48180 (313) 299-5000; www.arrowuniform.com

Thomas Andris CEO

75.1

71.3

5.4

456

702

Uniform rental and sales

Rodgers Chevrolet Inc., Woodhaven 48183 (734) 676-9600; www.rodgerschevrolet.com

Pamela Rodgers president

74.1

67.3

10.2

Automobile dealership

International Extrusions Inc., Garden City 48135 (734) 427-8700; www.extrusion.net

Nicholas Noecker president and CEO

74.0

72.0

2.8

215

Manufacturer of aluminum extruded profiles, powder-coat painting and fabrication facilities

117 118 119

137 138 139 140 141 142

Security services: alarm installation and service, guard services, medical monitoring

B Company estimate. C Plastics News.

Continued on, Page M53

Weâ&#x20AC;&#x2122;re all in business for a reason.

Ours is to make yours better.

doeren.com Ĺ? 248.244.3000 GRHUHQ FRP Ĺ?

20150601-SUPP--0053-RG1-CCI-CD_--

5/27/2015

5:56 PM

Page 1

CRAINâ&#x20AC;&#x2122;S DETROIT BUSINESS // June 1, 2015

CRAIN'S LIST: PRIVATE 200

From Page 52

M53

Ranked by 2014 revenue Detroit Revenue Revenue area Worldwide ($000,000) ($000,000) Percent employees employees 2014 2013 change Jan. 2015 Jan. 2015 Type of business

Company Address Phone, website

Top executive

142

Gonzalez Design Group, Pontiac 48340 (248) 548-6010; www.gonzalez-group.com

Gary Gonzalez CEO

$74.0

$71.0

4.2%

450

Design engineering, staffing, manufacturing technologies, production systems, other

144

Secure-24 LLC, Southfield 48033 (800) 332-0076; secure-24.com

Mike Jennings CEO

73.0

62.9

16.1

460

Managed hosting, enterprise cloud computing and IT outsourcing for large organizations and mid-market companies.

144

Medcart Specialty Pharmacy, Livonia 48150 (877) 770-4633; www.medcartpharmacy.com

73.0

52.0

40.4

Specialty pharmacy services

146

Rapid Global Business Solutions Inc. , Troy 48083 (248) 589-1135; www.rgbsi.com

Eddie Abueida and Ed Saleh Co-CEOs Nanua Singh president and CEO

72.0

74.9

-3.9

423

1,535

Synova Inc., Southfield 48075 (800) 799-9625; www.synovainc.com

Tim Manney president

71.1 B

70.0

1.6

148

Link Engineering Co., Plymouth 48170 (734) 453-0800; www.linkeng.com

71.0

68.0

4.4

305

149

Atwell LLC, Southfield 48076 (248) 447-2000; www.atwell-group.com

Roy Link chairman and CEO Brian Wenzel president and CEO

70.8

65.3

8.4

500

150

Ansara Restaurant Group, Inc., Farmington Hills 48331 (248) 848-9099; www.ansararestaurantgroup.com

Victor Ansara president and CEO

70.1

67.8

3.4

1,950

2,675

150

Frank Rewold and Son Inc. , Rochester 48307 (248) 651-7242; www.frankrewold.com

Frank Rewold president and CEO

70.1

60.1

16.6

Construction management, general contracting, design/build

152

Market Strategies Inc., Livonia 48152 (734) 542-7600; www.marketstrategies.com

Andrew Morrison chairman

70.0

66.6

5.2

103

Market research consultancy

HelloWorld Inc. C, Pleasant Ridge 48069 (248) 543-6800; www.helloworld.com

Peter DeNunzio CEO

70.0

65.4

7.0

290

392

Digital marketing solutions company specializing in mobile, social media and Web campaigns

MPS Group Inc., Farmington Hills 48331 (313) 841-7588; www.mpsgrp.com

Charlie Williams chairman

69.0

63.9

8.0

150

350

Total waste management and industrial cleaning

The Colasanti Cos., Macomb Twp. 48042 (586) 598-9700; www.colasantigroup.com

66.9

69.7

-4.0

150

General contracting and construction management and design/ build; self-perform concrete services

66.8

65.0

2.8

600

1,400

65.9

54.7

20.3

General Contractor/Construction Manager

Rank

147

152 154

Software development, IT and services for staffing, engineering, vendor management, and recruitment process outsourcing Custom software development, maintenance and support, SAP technologies, SAP enterprise applications, SAP performance management, mobile applications development for financial and telecom verticals, cloud enabling of organizational resources Manufacturer of testing systems and provider of commercial testing services Consulting, engineering, and construction services Restaurant

157

C.E. Gleeson Constructors Inc., Troy 48083 (248) 647-5500; www.gleesonconstructors.com

Christopher Colasanti president and Angelo Colasanti CEO Jerome Sheppard CEO and Josie Sheppard president Charles Gleeson II president and CEO

158

Better Made Snack Foods Inc., Detroit 48213 (313) 925-4774; www.bettermadesnackfoods.com

Salvatore Cipriano CEO

65.2

66.4

-1.8

252

Snack foods

MJC Cos., Macomb Township 48044 (586) 263-1203; www.mjccompanies.com

65.1

65.5

-0.6

Residential, Apartment, Commercial Construction, Builder and Developer

63.8

59.3

7.6

325

Stamping plant, automotive welding, assembly, dies and prototypes

63.0

50.0

26.0

Corned beef

155 156

Epitec Inc., Southfield 48033 (248) 353-6800; www.epitec.com

IT, Engineering and Professional staffing

160

Motor City Stampings Inc., Chesterfield Township 48051 (586) 949-8420; www.mcstamp.com

Michael A. Chirco president/ managing Member/ CEO Judith Kucway CEO and CFO

161

E.W. Grobbel Sons Inc. , Detroit 48207 (313) 567-8000; grobbel.com

Jason Grobbel president

162

Systrand Manufacturing Corp., Brownstown Township 48183 Sharon Cannarsa president and CEO (734) 479-8100; www.systrand.com

62.5

63.2

-1.0

Precision machining and assembly

162

Benlee Inc., Romulus 48174 (734) 722-8100; www.benlee.com and www.raleighscrapmetalrecycling.com

Greg Brown president and CEO

62.5

60.0

4.2

Manufacturer of roll-off trailers and trucks as well as a scrap metal recycling, electronics recycling, cardboard recycling

164

Buscemi Enterprises Inc., Roseville 48066 (586) 296-5560; www.originalbuscemis.com

Anthony Buscemi manager

62.0

58.0

6.9

710

Franchisor of party shops

165

Kasco Inc., Royal Oak 48067 (248) 547-1210; www.kascoinc.com

Michael Engle vice president

61.9

45.2

37.1

Construction management, design/build, construction program administration

WorkForce Software LLC, Livonia 48152 (877) 493-6723; www.workforcesoftware.com

Kevin Choksi CEO

61.0

50.4

21.1

318

527

60.0

53.0

13.2

1,458

Complete workforce management platform for large employers with complex needs such as time and attendance, scheduling, absence and leave management and employee fatigue, along with powerful reporting and analytics to connect the dots between labor activities and business results Skilled-nursing homes

59.8

49.6

20.7

356

572

Advertising and integrated marketing agency with a focus on consumer brands and retail.

159

166 167 168

Advantage Management Group Inc. (The Manors), Southfield Reginald Hartsfield 48075 owner and Kelsey (248) 569-8400; themanors.net Hastings Ken Barnett The Mars Agency, Southfield 48033-7496 Global CEO (248) 936-2200; www.themarsagency.com

169

Wade Trim, Detroit 48226 (313) 961-3650; www.wadetrim.com

Frank Tymowski CEO

59.6

48.8

22.2

117

334

Consulting engineering and planning services

170

Morpace Inc., Farmington Hills 48334 (248) 737-5300; www.morpace.com

Frank Ward chairman

58.3

55.6

4.9

169

234

Market research and consulting firm

171

Domestic Linen Supply & Laundry Co., Farmington Hills 48334 (248) 737-2000; www.domesticuniform.com

Bruce Colton president

57.0

56.0

1.8

Facility management and textile rental

B Company estimate. C Formerly ePrize Inc.

Continued on Page 54

20150601-SUPP--0054-RG1-CCI-CD_--

5/27/2015

5:57 PM

Page 1

CRAINâ&#x20AC;&#x2122;S DETROIT BUSINESS // June 1, 2015

M54

CRAIN'S LIST: PRIVATE 200

From Page M53

Rank

Company Address Phone, website

172

BlueWater Technologies Group Inc., Southfield 48075 (248) 356-4399; www.BlueWaterTech.com

172

Harley Ellis Devereaux Corp., Southfield 48033 (248) 262-1500; www.harleyellisdevereaux.com

174

TAG Holdings LLC, Wixom 48393 (248) 822-8056; www.taghold.com

175

Productions Plus - The Talent Shop, Bingham Farms 48025 (248) 644-5566; www.productions-plus.com

176

Bob Jeannotte Buick GMC Truck Inc., Plymouth 48170 (734) 453-2500; www.jeannotte.com

177

Evans Distribution Systems Inc., Melvindale 48122 (313) 388-3200; www.evansdist.com

Top executive

Ranked by 2014 revenue Detroit Revenue Revenue area Worldwide ($000,000) ($000,000) Percent employees employees 2014 2013 change Jan. 2015 Jan. 2015 Type of business

Suzanne Schoeneberger president Michael Cooper president

$56.9

$69.0

-17.5%

181

Design, engineering and implementation of custom technology solutions for live events, video conferencing, experiential marketing, interactive displays, lead generation capabilities Full-service architecture, engineering, planning, interior design, landscape architecture, construction administration, and more

56.9

43.5

30.8

113

283

Joseph Anderson Jr. chairman and CEO Margery Krevsky chief executive officer/owner Robert Jeannotte CEO

56.0

54.0

3.7

Module and component manufacturing for various industries including aerospace, defense, automotive, sports and recreation vehicles, mining, construction and other heavy vehicles

55.9

51.0

9.6

Full service talent management agency

53.0

41.0

29.3

Automobile dealership

John A. Evans president and John W. Evans chairman George Glassman president

52.0

49.6

4.8

450

Warehousing and distribution, transportation, contract packaging, quality inspection, staffing and other logistics-related services

51.6

38.0

36.0

Automobile dealerships

Donald Coleman chairman and CEO Jim Miller president

50.8 B

54.8 B

-7.3

Advertising and marketing

50.0

0.0

Engineering company providing automotive-based programs and manufacturing solutions

178

Glassman Automotive Group Inc., Southfield 48034 (248) 354-3300; www.glassmanautogroup.com

179

GlobalHue, Southfield 48075 (248) 223-8900; www.globalhue.com

180

Pratt & Miller Engineering & Fabrication Inc., New Hudson 48165 (248) 446-9800 ; prattmiller.com

180

LaGrasso Bros. Produce, Detroit 48211-3209 (313) 579-1455 ; www.lagrasso.com

Tom LaGrasso Jr. president

50.0

182

Industrial Control Repair Inc., Warren 48092 (586) 582-1500; www.icrservices.com

Paul Gutierrez president and CEO

49.5

48.0

3.1

183 184

Kirco Manix , Troy 48084 (248) 354-5100; www.kircomanix.com

Douglas Manix president

45.0

47.0

-4.3

ICR repairs electronic and mechanical industrial equipment as well as purchasing and selling refurbished industrial electronics, robots, and machinery. Design and build, construction management

Almetals Inc., Wixom 48393 (248) 348-7722; www.almetals.com

James Chain president

44.0

40.0

10.0

Metal slitter, distributor, warehouser and processing service center

185

Multi-Bank Securities Inc., Southfield 48075 (800) 967-9045; www.mbssecurities.com

43.8

38.1

14.8

128

Independent, investment firm that specializes in the sales, trading and underwriting of institutional, fixed-income securities.

186 186

Loc Performance Products Inc., Plymouth 48170 (734) 453-2300; www.locperformance.com

David Maccagnone CEO Louis Burr president

43.0

42.0

2.4

200

Machining and assembly of driveline, suspension and engine components for military and off-road vehicles

Bell Fork Lift Inc., Clinton Township 48035 (586) 415-5200; www.bellforklift.com

Wayne Bell president and CEO

43.0

42.0

2.4

130

Material handling

188

W3R Consulting, Southfield 48075 (248) 358-1002; www.w3r.com

42.7

36.5

17.0

265

350

IT staffing and consulting, including application development, business intelligence and data analytics

189 190

Shaw Electric Co., Southfield 48033 (248) 228-2000; www.shawelectric.com

Eric Hardy chairman, president and CEO David Kurtz chairman

42.0

39.0

7.7

183

Electrical and teledata contractor

American Plastic Toys Inc., Walled Lake 48390 (248) 624-4881; americanplastictoys.com

John Gessert president and CEO

41.6

50.0

-16.6

185

300

Manufactures and distributes injection-molded plastic toys

191

Saturn Electronics Corp., Romulus 48174 (734) 941-8100; www.saturnelectronics.com

Nagji Sutariya president and QC manager Dale Chiara and Mark Yanalunas managing partners Gui Ponce de Leon managing principal and CEO Sy Ginsberg president and Scott Mendelsohn John Hiltz president

40.0

37.0

8.1

200

Printed circuit board manufacturing

37.8

256

Engineering for manufacturing process design and integration

36.9

34.6

6.8

185

Program, project and construction management consulting; expert witness services

36.9

30.3

21.8

Meat processing and distribution

34.1

25.3

34.8

165

300

Architects, engineers, and planners

192

Design Systems Inc., Farmington Hills 48331 (248) 489 4300; www.dsidsc.com

193

PMA Consultants LLC, Detroit 48226 (313) 963-8863; www.pmaconsultants.com

193

United Meat & Deli, Detroit 48210-0185 (313) 894-6300; www.unitedmeatanddeli.com

195

Orchard, Hiltz & McCliment Inc. (OHM Advisors), Livonia 48150 (734) 522-6711; www.ohm-advisors.com

196

Kyyba Inc., Farmington Hills 48334 (248) 813-9665; www.kyyba.com

Tel Ganesan president & CEO

32.7

28.7

14.0

186

399

Engineering and IT staffing services, application software, offshore development and automotive electronics solutions

Brightwing, Troy 48083 (248) 585-4750; www.gobrightwing.com

32.1

35.9

-10.5

371

Staffing, Recruiting and Employee Learning/Development Services

31.9

29.3

8.5

Manufacture of automotive components, iron and aluminum castings

198 199

Aztec Manufacturing Corp., Romulus 48174 (734) 942-7433; www.aztecmfgcorp.com

Aaron Chernow CEO and George Opitz president Francis Lopez chairman

Prize Logic LLC, Southfield 48033 888-795-6442; www.prizelogic.com

Keith Simmons CEO

31.4

18.2

72.2

160

Online promotion execution for Fortune 100 brands

199

Kasapis Brother Inc. (Ram's Horn Restaurants), Southfield 48033 (248) 350-3430; ramshornrestaurants.com

Eugene Kasapis president and CEO

31.4

31.2

0.6

740

Family restaurant chain franchisor

197

B Ad Age Datacenter U.S. revenue estimate. LIST RESEARCHED BY SONYA D. HILL

DBpageAD_DBpageAD.qxd 5/27/2015 9:27 AM Page 1

Whatâ&#x20AC;&#x2122;s the connection between years and nearly 1 million students? Oakland Community College. Yes, OCC. Chartered in 1964, Oakland Community College has served nearly 1 million students over the last 50 years. Then, now and always, OCC will be focused on meeting our communityâ&#x20AC;&#x2122;s needs. After all, community is our middle name.

www.oaklandcc.edu

DBpageAD_DBpageAD.qxd 5/20/2015 4:11 PM Page 1

At Walsh College, our graduates go on to run companies, establish startups, and help their companies grow. Thatâ&#x20AC;&#x2122;s why so many business professionals are getting a head start on a bright new future at Walsh. Your most productive summer ever starts by applying now.

SUMMER CLASSES START JUNE 26. LEARN MORE AT WALSHCOLLEGE.EDU/FUTURESTUDENTS.