Crain's Detroit Business, May 28, 2018 issue by Crain's Detroit Business

MAY 28-JUNE 3, 2018 | crainsdetroit.com

AMERICAN DREAMS

Entrepreneurs who came to America and made their dreams take flight Pages 10-18

SPECIAL MACKINAC POLICY CONFERENCE PREVIEW INSIDE: Is Michigan prepared?

NEWSPAPER

Page 1

ILLUSTRATION BY ANDREA LEVY FOR CRAIN’S

Vol. 34 No. 21

$5 a copy. $169 a year.

0UÅ\LUJPUN [OL SLNHS SHUKZJHWL We don’t sit on the sidelines. We are active in industry groups and we’re driving legislative change. We are leaders in the law.

D E T RO I T

T ROY

kerr-russell.com

Evolution by Brad Ziegler

21849 KerrRussell Legal Landscape Ad - Crains.indd 1

2/19/18 1:14 PM

Crain’s List: Our annual Private 200 Pages 27-37

Grand Prix hopes for new deal to run on Belle Isle Page 3

Startup fires up a new business in cast iron Page 3

MAY 28 - JUNE 3, 2018 | crainsdetroit.com

HEALTH CARE

Wayne State, Henry Ford deep in affiliation talks

By Jay Greene

Need to know

Partnership talks between Wayne State University and Henry Ford Health System, two Detroit institutions, have reached a critical phase and a letter of intent to form a collaborative agreement dubbed “Project Leapfrog” could be signed in the coming weeks, Crain’s has learned. For more than 18 months, top executives at Henry Ford and Wayne State have explored a variety of affiliation models with a Chicago-based

 Wayne State, Henry Ford have engaged in exclusive affiliation negotiations for more than 18 months

jgreene@crain.com

 Deal could include merger of medical groups, a combined pediatric department, consolidated research enterprise, new buildings and an estimated $200 million in additional combined revenue  Medical students from Wayne State would remain at Detroit Medical Center for two years or longer, depending on ongoing contract talks

consultant, Navigant Consulting. The discussions have the potential of bringing Henry Ford a prominent medical school partnership, remaking the downtown Detroit health care landscape and disrupting fractious talks between Wayne State and its longtime partner, Detroit Medical Center. Three of the stated goals of Henry Ford and Wayne State are to rival Michigan Medicine, the University of Michigan’s health enterprise in Ann Arbor; to “leapfrog” eight-hospital Beaumont Health in Royal Oak,

which has a medical school but has a much smaller employed medical group and no health insurance arm; and to create a tightly integrated clinical, teaching and research organization to serve patients, doctors and students. The Wayne State-Henry Ford affiliation would include combining 1,530 physicians into a single medical group, offering pediatric and adult clinical services and combining research, medical student and residency teaching programs. The subject of the talks was re-

vealed in hundreds of pages of documents, reports and emails obtained by Crain’s in a Freedom of Information Act request to Wayne State, a public university subject to state open records laws. Wayne State provided limited interviews to Crain’s to explain the documents. Henry Ford, as a private nonprofit hospital system, declined interviews but provided a statement. More than a dozen other people with knowledge about the potential affiliation were interviewed. SEE TALKS, PAGE 66

MACKINAC POLICY CONFERENCE

‘IS MICHIGAN PREPARED?’ Maybe. Maybe not. 4th Grade Reading

How Michigan proficiency test scores stack up against Midwest competitors and some states that have seen improvements. 60 National Avg. Florida 50

Ohio Colorado Indiana

51%

Tennessee Massachusetts Michigan

About the conference

 The Detroit Regional Chamber’s Mackinac Policy Conference runs Tuesday-Friday at Mackinac Island’s Grand Hotel.

The “pillars” of the program this year are mobility, trust, and “Is Michigan prepared?”

8th Grade Mathematics

Examining proficiency test results makes it clear that while Michigan has remained largely stagnant, bordering and other economic competitor states have made gains. 60 50

National Avg. Ohio Colorado Indiana

Florida Tennessee Massachusetts Michigan

50%



40 30

32%

20 10

1998

2002

2005

2009

2013

2017

SOURCE: The Nation’s Report Card

Leaders bear responsibility for creating, fixing talent gap attle or California as a busiThe bulk of this week’s ness problem. It wasn’t. It Mackinac Policy Conference was a problem of neglect. will focus on talent — specifiOur leaders abandoned cally attracting talent, growing Michigan’s youth, and now talent and keeping talent, they are racing for solutions among the new issues of moto fill the talent gap they bility, opioids and investment. created. Political and business leadThe first failing of our poers will highlight long-known DUSTIN litical and business leaders cracks in the facade of Michi- WALSH was misstating the probgan’s “comeback.” They won’t be wrong. But they might be too late. lem. They framed Michigan’s challengSee, when other states were doubling es in terms of “competitiveness,” particdown on talent through reinvestment ularly versus this state or that country. and reform, Michigan was bent on im- They argued that Michigan’s prosperity proving business conditions. For the depended, and still depends, on outpast decade, these leaders looked at the building and outcutting and outincendiaspora of our youth headed toward tivizing the competition. better jobs in Chicago or Denver or SeSEE TALENT GAP, PAGE 62 crainsdetroit.com

Vol. 34 No. 21 $5 a copy. $169 a year.

‘Detroit Rising’ podcast Hear an interview between Crain’s Chad Livengood and Detroit Regional Chamber CEO Sandy Baruah and conference Chair Ray Telang of PwC in the “Detroit Rising” podcast on Apple Podcasts, ITunes or wherever you get your podcasts.

Inside Meet 10 immigrant entrepreneurs who’ve made an impact on Michigan. Pages 10-18

40 30

31% 20 10

2000

2003

2005

2009

2013

2017

SOURCE: The Nation’s Report Card

Mackinac conference wrestles with rapid change, uncertainty By Chad Livengood clivengood@crain.com

The headwinds of change will be blowing across the Straits of Mackinac this week as 1,600 of Michigan’s movers-and-shakers in business, politics, education and philanthropy gather for the Detroit Regional Chamber’s annual policy conference. Change will be the undercurrent of the Grand Hotel confab as candidates for governor jockey for attention and conference organizers try to focus the attention of attendees and policymakers on the transformative forces at work affecting Michigan’s auto sector, preparation for the new economy and eroding public trust in institutions.

In many ways, this year’s Mackinac Policy Conference serves as a transitional period between the era of outgoing Gov. Rick Snyder’s term as the state’s chief executive and next January, when a new governor and state government will take root, infusing new ideas and approaches to policymaking. The three pillars of the conference focus on Michigan’s preparation for the future, the mobility disruption that’s already changing the face and bottom line of the state’s auto industry and how to rebuild trust in government institutions, business and media figures felled by scandal and controversy. SEE MACKINAC, PAGE 62

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

MICHIGAN BRIEFS

INSIDE

From staff and wire reports. Find the full stories at crainsdetroit.com

Airbnb to collect tourist tax for Genesee County

Genesee County is the first local government in Michigan with which San Francisco-based Airbnb has made a tax agreement. The online-housing rental platform will collect tourist taxes on behalf of hosts and pay the resulting revenue to the county, Airbnb announced in a news release. The company will automatically collect the 5 percent Genesee Accommodations Tax for room bookings as of June 1, according to the release. Airbnb made a similar agreement with the state of Michigan last June. It collects and sends tax revenue to 370 municipalities and other local governments in the U.S. “In every single one ... it has meant new revenue that wasn't coming in before,” said Ben Breit, Airbnb's Midwest spokesman. The move shifts responsibility for taxes being paid by guests from the hosts, who earn money renting out the rooms, to Airbnb. Remitting the taxes to the government correctly can be difficult for hosts who aren’t trained accountants or familiar with hotel regulations, Breit said. “For us specifically, the increase, no matter what it is in terms of tax revenue, is very helpful for the county,” Genesee

County Treasurer Deb Cherry said. Along with the tax payment change, Airbnb committed to promoting tourism and economic growth in Flint and the greater county area under its Office for Healthy Tourism, Breit said. No specific plans were available.

CLASSIFIEDS

DEALS & DETAILS

KEITH CRAIN

OPINION PEOPLE

Lawmakers advance legislation on mandated abuse reporters

LANSING — Sports coaches, the types of paid employees who allegedly learned Larry Nassar was molesting gymnasts and other athletes before the sexual abuse scandal broke, still would not be required to report such suspected abuse to authorities under a watered-down proposal to expand Michigan’s mandatory reporting law, the Associated Press reported. A state House committee last Wednesday passed a bill that would add physical therapists, physical therapist assistants and — in a reversal from a day earlier — athletic trainers to the list of mandatory reporters. But it drew swift criticism for still backing away from Senate-passed legislation that also would require college employees, coaches and volunteers to report abuse, citing cost concerns, unintended consequences and other issues. Sen. Rick Jones (R-Grand Ledge) said he would move to add paid coaches in his committee after the full House was expected to approve its Nassar-inspired bills last Thursday, though an-

CALENDAR

LUCAS VALONE FOR CRAIN’S DETROIT BUSINESS

Some of Larry Nassar’s victims said they told a gymnastics coach and trainers at Michigan State University, where the former sports doctor worked, that he molested them under the guise of treatment, but nothing was done.

other key senator signaled the package would see no additional changes. “That is ridiculous. A paid professional coach or trainer should have enough common sense and enough training to report a sexual assault on a teenager,” Jones said, hours before the House panel added trainers back in the bill. Some of Nassar’s victims said they told a gymnastics coach and trainers at Michigan State University, where the former sports doctor worked, that he molested them under the guise of treatment, but nothing was done. No one has faced charges for not reporting the abuse, but there are multiple investigations under way into the school’s handling of complaints. Ex-gymnastics head coach Kathie

Klages has denied that former gymnast Larissa Boyce’s claim told Klages that Nassar abused her in 1997 when Boyce, then 16, was training with the Spartan youth gymnastics team. Boyce said Klages dissuaded her from taking her complaint further even after another gymnast, who was 14, told Klages she received similar “treatments.” Michigan State softball, volleyball and track and field athletes also said they told a coach and trainers about Nassar’s inappropriate touching. Like all other states, Michigan requires health providers, psychologists, teachers, police, clergy and others to report suspected child abuse or neglect to the authorities. House Law and Justice Committee Chairman Klint Kesto, a Republican

RUMBLINGS

WEEK ON THE WEB

from Commerce Township, said trainers were included again because they are in a “professional category” and wanted to become mandatory reporters. He said Tuesday that implementing a “complete expansion” of the mandatory reporting law would cost too much and cited problems when Pennsylvania expanded its law after the Penn State University sexual abuse scandal.

Dow adds first Canada sales office in 20 years

The Dow Chemical Co. is expanding into eastern Canada with its first new sales center in the country in more than 20 years, Bloomberg News reported. The new Toronto office will allow Dow to get closer to customers and collaborate better as it gears up for growth after its planned spin-off from Midland-based DowDuPont Inc. early next year, according to Andrew Liveris, chairman and chief executive officer of Dow Chemical. DowDuPont Inc. is the merged entity of Dow Chemical Co. and Wilmington, Del.-based DuPont Co.

You liked your CPA before tax reform ...you’re going to LOVE ‘em now!

Without one, things could get unbearable. Find yours at micpa.org.

8 39,60

MICPA Michigan Association of Certified Public Accountants

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

SPORTS BUSINESS

Grand Prix organizers look to keep race on Belle Isle By Bill Shea bshea@crain.com

Organizers of the Detroit Belle Isle Grand Prix plan to submit a proposal to the state next month for a new multi-year contract to continue staging the race on the island in the Detroit River. Questions about the event’s future arose in recent months because the Grand Prix’s five-year deal with the state Department of Natural Resources ends after this year’s race

weekend, which is June 1-3 on Belle Isle. “My expectation is that after the Grand Prix, we’ll meet with the DNR; and my intention is that we’ll submit a Bud Denker proposal to continue to race into the future,” race Chairman Bud Denker said. “My ex-

pectation is that we’ll have a race there beyond this year.” A deal must be in place by mid-summer because organizers cobble together the 2019 race schedules in August, Denker said. Ultimately, Ron Olson, head of the DNR Parks and Recreation Division, will determine the fate of the Grand Prix proposal. He said he’s trying to balance the business and civic interest of the race with ongoing concern that the race monopolizes nice

Need to know

JJGrand Prix will submit application in June for new contact JJCurrent 5-year deal with state DNR ends in 2018 JJRace wants decision on new deal before August

spring months at the expense of the public. He said there’s no “hard-and-fast time frame” for approving or denying

a new contract proposal once one is submitted to him. “Our timeline is basically, the sooner we know the better. People do start making plans for the park well in advance for other stuff, too,” Olson said. It could take days or weeks, he added. And part of the process will include sharing the proposal with the Belle Isle Conservancy, a nonprofit that raises money and aides the DNR in operating and managing the island. SEE GRAND PRIX, PAGE 64

MANUFACTURING

Firing up a cookware business Marquette Castings manufactures Michigan-made cast-iron skillets By Sherri Welch swelch@crain.com

The cast-iron cookware that was a staple in American homes in the 1800s and early 1900s is making a comeback. Fledgling Marquette Castings LLC, based in Royal Oak, contracted with RLM Industries Inc. in Oxford to produce cast-iron skillets that mimic the

Need to know

Royal Oak-based Marquette Castings LLC launches production of Michigan-made, cast-iron skillets J

J Local production replaced company’s offshore sourcing of the skillets J Now looking to bring production of cast-iron Dutch ovens to Michigan from China

MUST READS OF THE WEEK Michigan sees uptick in manufactured housing Manufactured housing steadily building growth after recession plunge. Page 4

attributes known in the vintage cookware. The local production is replacing Chinese production of the skillets. RLM’s foundry employs a casting process not previously used to make cast-iron cookware, said Marquette Castings co-founder and CEO Eric Steckling. The process yields skillets that are much closer to the highly

Ford Motor Co. moved its first employees into The Factory in Corktown neighborhood. Page 24

MARQUETTE CASTINGS

Demand from food services is expected to account for more than two-thirds of that growth, with top demand coming from the Asia Pacific, followed by Europe and North America. Steckling said Marquette Castings now is looking for a U.S. foundry to make the enameled Dutch ovens, crafted using an automated process because of the coating, that it still produces in China. SEE SKILLETS, PAGE 61

REAL ESTATE

Revitalization efforts knock buildings off list of neglected properties By Kirk Pinho

Need to know

The Michigan Central Station — yes, that Michigan Central Station — will almost certainly be redeveloped as Ford Motor Co. is in the waning stages of finalizing a purchase and development agreement with the Moroun family. Long Detroit’s towering emblem of decline, disinvestment and decay, the hulking station has for decades been considered the most daunting

on Michigan Central Station

kpinho@crain.com

Ford begins move to Corktown

sought-after, original cast-iron pans in terms of weight and the smoothness of the cooking surface, he said. A Transparency Market Research report issued last month projected the global retail market for cast-iron cookware will increase at a compound annual rate of 3.4 percent between 2017 and 2025, rising to nearly $3.3 billion from $2.5 billion.

Marquette Castings co-founder and CEO Eric Steckling.

JJFord Motor Co. close to finalizing deal

JJMajority of 50 vacant buildings in central business district rehabbed or being rehabbed JJMillions in retail and residential space being developed

and perhaps unlikely redevelopment opportunity in a city where Crain’s once tallied nearly 50 vacant, aban-

doned properties totaling 7.2 million square feet in the downtown core alone. With the Dearborn-based auto giant swooping in to make the depot the anchor of what is expected to be a large campus in Detroit’s Corktown neighborhood, west of downtown, another of the city’s neglected urban ruins is slated to be erased from the once long list of neglected real estate all but left for dead. SEE BUILDINGS, PAGE 64

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

There are three sides to our story. We believe that the best stories are three-sided. That we live in a world where marketing, technology and analytics don’t just get along, they’re codependent. And that the only thing more important than establishing brand loyalty is keeping it. We translate data science into targeted messaging and leverage the latest technology to make it work. We are domestic and global. We are disciplined and interdisciplinary. But most importantly, we are one.

onemagnify.com

SUN COMMUNITIES INC.

Sun Communities Inc., a Southfield-based, publicly traded real estate investment trust, has about 350 manufactured housing communities with approximately 90,000 units across the U.S.

Manufactured housing steadily building growth after recession By Kirk Pinho kpinho@crain.com

Detroit, MI

Mortgage $5,100,000 Auto Dealership BIRMINGHAM

Wilmington, DE

Charlotte, NC

Shanghai, China

Permanent Loan $69,000,000 Class A Office Building TROY

Line of Credit $3,000,000

Real Estate $5,800,000

Distributor - Industrial Health and Safety

Retail Pharmacy

MACOMB

MI, MO & IL

Line of Credit $11,420,000

Term Loans $5,100,000

General Contractor

Food & Beverage Concessions

SOUTHEAST MI

Cologne, Germany

MULTIPLE AIRPORTS, US

COMMERCIAL BANKING • TREASURY MANAGEMENT • PRIVATE BANKING

Chemical Bank delivers customized solutions tailored to the needs of your business. With our Commercial Banking services, you’ll find exceptional service and expertise to help make your money go further. Visit ChemicalBank.com or contact Jim Robinson, Southeast Michigan Regional President, at 248.244.2866 to learn more.

Business relationships built block by block.

The state’s manufactured housing industry is churning along nicely after taking a body blow on sales during the recession. Although, it’s nowhere near its peak in the mid to late 1990s in terms of unit shipments to Michigan. Bill Sheffer, executive director of the Michigan Manufactured Housing Association, attributed the increase in unit shipments — there are no production facilities in Michigan — to an improved economy and baby boomers downsizing from traditional single-family housing. “When the economy got tighter, the alternative brought us to today, where we see this uptick in the sale of manufactured homes in the state,” Sheffer said. “That’s a great sign of the industry and its comeback providing affordable housing for Michigan residents.” But the industry is still a far cry from its boom years, according to data from the Manufactured Housing Institute, a trade organization based in Washington, D.C. In 1999, there were 12,545 manufactured home shipments to Michigan. Yet by 2010, there were just 325, a precipitous drop of 97.4 percent. In 2016 there were 3,866, more than two-thirds lower than the peak 19 years ago. Last year, Michigan had 4,791 manufactured home shipments, the fifth-highest in the nation, trailing only Texas (17,676), Alabama (6,046), Florida (5,855) and Louisiana (5,776). As a whole, the industry has faced challenges competing with traditional single-family housing, which itself experienced an overall supply shortage, creating a seller’s market where buyers quickly pluck quality homes from the market. In the early to mid 1980s, manufactured housing reliably represented approximately one-third of the overall home-sales share, ranging from about 29 to 37 percent of overall sales, according to the Manufactured Housing Institute. Yet, that number has hovered between 12 and 14 percent since 2008. “It’s staying consistent over a

Need to know

J Manufactured home shipments to Michigan dropped more than 97 percent in a decade. J State had the fifth-highest number shipments in the nation in 2017. J Buyers don’t skimp on design of manufactured homes.

“When the economy got tighter, the alternative brought us to today, where we see this uptick in the sale of manufactured homes in the state.” Bill Sheffer

pretty significant period of growth of MH starts,” said Bruce Thelen, senior vice president for Sun Communities Inc. (NYSE: SUI), a Southfield-based, publicly traded real estate investment trust that has about 350 manufactured housing communities with approximately 90,000 units across the U.S. Its manufactured housing portfolio revenue grew 17.9 percent from $834 million to $983 million between 2016 and last year. Thelen said, in part, sales increased because since the recession the financial health of buyers has improved, and they are more able to buy. In 2017, the average sale price was $70,600 and there were 93,000 manufactured homes produced. Comparatively, the average cost of a single-family home was about $286,000 last year, making manufactured housing an attractive, affordable option for buyers, according to Sun. But that doesn’t mean corners can be cut. “Today’s consumer expects when they come into a house to see all the things they see on HGTV,” Thelen said. “They expect all the same features on any home they walk into.” Kirk Pinho: (313) 446-0412 Twitter: @kirkpinhoCDB

SPONSORED CONTENT

United Way works to address third-grade literacy crisis By Madison Sanders

Across the state 44 percent of Michigan students were able to reach third grade reading proficiency standards in 2017. In Detroit, that number is 15 percent. New Michigan legislation will require students to repeat third grade if they fail to achieve reading proficiency. This provision will take effect during the 2019-20 school year, and will create chaos for schools. “There are a lot of out-of-school factors that contribute to the literacy challenges confronting the region today. Not all young children are getting the critical support they need to be ready for success in kindergarten, and access to opportunities during out-of-school time varies dramatically across the region,” says Tammie Jones, vice president of Education and Economic Prosperity at United Way for Southeastern Michigan. “It isn’t fair to our children to deny them of resources, yet demand results.” As a result, the nonprofit organization quickly mobilized to create the Read to Succeed initiative that offers resources

“It isn’t fair to our children to deny them of resources, yet demand results.” – Tammie Jones

outside of the classroom to parents and child care providers. One of the strategies includes a partnership between United Way and ABCmouse to bring a suite of digital tools to Detroit Public Library branches, where parents can check out the awardwinning tools — made possible in part thanks to a $650,000 grant from General Motors Company. And, just in time for summer vacation, United Way also partnered with the Youth Development Resource Center to create Summer Spark to enhance children’s summer learning. With Summer Spark, parents can use a new digital tool to easily access high-quality programs, all in one place. During the organization’s recent 101st Anniversary Gala, more than $1.3 million in funds was raised in support of these efforts. “There is still more work to be done,” Jones said. “We rely on the generosity of our donors to help us maintain and expand these critical programs.”

CELEBRATING THE POWER OF ONE!

OVER $1.3 MILLION RAISED TO IMPROVE CHILDHOOD LITERACY

Thank you to all of the donors who celebrated our 101st Anniversary Gala with us on April 14. Funds raised from the gala are already having a direct impact on the lives of children in our region. When individuals unite for the greater good, powerful change happens. Special thanks to our event chairs, Yvette and Dave Bing, Lisa and Bill Ford and Eileen and Mark Petroff for your leadership and support.

GIVE. ADVOCATE. VOLUNTEER.

SPONSORED BY:

UNITEDWAYSEM.ORG

UnitedWayMAckinac.indd 1

5/14/18 3:43 PM

BE THE DRIVER

OF YOUR OWN

SUCCESS

Learn more global.cmich.edu/MET

Master of Entrepreneurial Transactions

The tactical side of entrepreneurship · Forming business entities · Identifying and protecting intellectual property · Raising seed capital from sources such as angel investors · Leveraging crowdfunding platforms · Buying and selling businesses

The program is offered completely ONLINE in 8-week sessions with an option to finish in one year. CMU is an AA/EO institution, providing equal opportunity to all persons, including minorities, females, veterans and individuals with disabilities (see cmich.edu/ocrie). 3682336 4/18

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

Blue Care tests new opioid treatment with two facilities By Jay Greene jgreene@crain.com

Blue Care Network of Michigan is testing new treatment plans for opioid abuse that it hopes will cut relapse rates and save on medical costs for those patients and their families. The managed-care company is working with two experienced substance abuse treatment facilities in Southeast Michigan to test a potentially more effective treatment protocol that considers the addiction as a chronic disease requiring intensive acute, outpatient and follow-up home care, Crain’s has learned. In an internal memo earlier this month obtained by Crain’s, Blue Cross described how it is working with Maplegrove Center, which is part of Henry Ford Behavioral Health Services, and Pine Rest Christian Mental Health Services. Both facilities are part of Blue Care and Blue Cross Blue Shield of Michigan’s provider network. Blue Cross confirmed the contents of the memo to Crain’s. If successful with the one-year study to reduce opioid costs and relapse rates that averages about 36 percent for the health insurer, Blue Care and Blue Cross could promote it as a preferred method of treatment within its provider network in Michigan and other states, said William Beecroft, M.D., Blue Care’s medical director. Currently, the Blue Care/Blue Cross relapse rate is 36 percent, and of those patients who relapse, 72 percent relapse multiple times, Beecroft said. To-

Need to know

JJBlue Care pilot program will test best

evidenced-based practices to treat opioid use disorder JJRelapse rate for treatment averages 36 percent; goal is to cut that in half, saving money and improving quality of life of patients JJMaplegrove Center and Pine Rest Christian Mental Health Services are cutting-edge providers testing enhanced care model

tal health care costs for people with opioid addictions and other substance abuse problems are much higher than those with normal medical risk factors, he said. Treatment costs for substance abuse disorder currently range between $3,500 to $5,000 per episode of treatment, Blue Care said. The average total medical costs for a member with opioid use disorder is about $68,000 annually. “Cost is one factor. We also look at quality of life. Our goal is to help people stay well,” said Beecroft, a psychiatrist, geriatrician and substance abuse specialist. “We have looked at return on investment and if you just treat the individual, you get 2-1 investment return. You spend $10,000 on treatment, and the overall medical spend return is $20,000.” Blue Care’s patient population with opioid use disorder is about the same as national average of 0.2 percent, or about 50,000 people. But only about 10

percent to 15 percent seek inpatient treatment, which averages $5,000$7,500 per stay, Blue Care said. Beecroft said those with addictions spend more money on health care than others, including additional visits to the emergency departments, intensive care units, surgeries and additional medications. “When you factor in families, the return is 3.65 to 1,” he said. Opioids include substances such as morphine, heroin, codeine and oxycodone. Opioid abuse is considered a chronic psychiatric disease called opioid use disorder. The diagnosis of opioid use disorder is often based on criteria by the American Psychiatric Association. Opioid use disorder can be treated with opioid replacement therapy using methadone or buprenorphine, which are also opioids but don’t produce the same high. The medication naltrexone may also be useful to prevent relapse, though it’s best known for reversing the effects of an opioid overdose. Elizabeth Bulat, M.D., medical director of Henry Ford Maplegrove Center, said Blue Care asked Maplegrove to participate in the pilot because of its extensive experience in opioid addiction and treatment. More than half of Maplegrove’s clients suffer from opioid addiction, a substantial increase from five years ago, she said. “We are the experts and have already been doing this work for a long time,” since 1981, Bulat said. “We provide evidenced-based care to treat opioid use disorder as a chronic disease.”

William Beecroft: Goal to help people stay well.

Elizabeth Bulat: Evidence-based care provided.

Treatment phases generally include detoxification, inpatient care that includes education and assessment, an intensive outpatient program of six weeks that includes family support, then up to a year or more of outpatient care, Bulat said. Beecroft said the two providers chosen to participate in the pilot have relapse rates of 20 percent and 26 percent. He declined to specify the relapse rate for each provider. “We are working with providers who have a good track records and we want to make it even better,” Beecroft said. “We want to improve that and get it as low as possible, ideally down to 15 percent of the population. That would be a big win, a home run.” Last year, CEO Daniel Loepp asked Blue Cross’ senior management to find better treatment methods for opioid use disorder, Beecroft said. “He asked us what we are doing and wanted use to find best practices and evidenced-based care,” he said. Beecroft said Blue Care came up

with the CLIMB program. CLIMB stands for community-based, life-changing, individualize, medically assigned and evidenced-based treatment. It is intended to add several components to how Maplegrove and Pine Rest treat opioid abuse patients. He said there will be more attention to post-acute care treatment and follow-up. “We will be looking at how best to use recovery coaches, case managers from the plan, visiting and social workers to the home,” he said. Bulat said she and other addiction specialist experts help Blue Care refine its CLIMB program. “They have the pilot now to track and see what we are doing to encourage others (providers) to do the same,” she said. Beecroft said Blue Care also is working with a software vendor to help patients in outpatient settings use their cell phone to keep in touch with their doctors and therapists through an app. “There will be assessments every day where (people will be) asked questions, if they are feeling good. It will provide suggestions on what to do if they are not feeling good or if they missed their 12-step meeting,” Beecroft said. “It will also have a geolocation device to show if (the person) is close to a bar or a known place (where drugs are sold). It will give early warning signs of a relapse.” Jay Greene: (313) 446-0325 Twitter: @jaybgreene

Making Michigan smile since 1957. Delta Dental of Michigan has helped make smiles brighter and healthier across the state for more than 60 years. We are dedicated to using our experience and expertise to do dental better for you. Thank you for making Delta Dental of Michigan the top choice for dental benefits!

www.deltadentalmi.com

THE SUBMARINER The quintessential divers’ watch has embodied the historic ties between Rolex and the underwater world since 1953. It doesn’t just tell time. It tells history.

OYSTER PERPETUAL SUBMARINER DATE

rolex

oyster perpetual and submariner are ® trademarks.

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

Ford begins move into Corktown

In-House Realty buys online marketplace

By Kirk Pinho kpinho@crain.com

Ford Motor Co. last week started moving its first employees into The Factory at Corktown. It’s Ford’s opening salvo in what is expected to be a broader campus in the Detroit neighborhood anchored by the long-vacant Michigan Central Station nearby. No deal between Ford and the Moroun family, which owns the 505,000-square-foot train station at 2001 15th St., has been announced, though it is expected in mid-June. Members of Ford’s autonomous and electric vehicle business teams are taking space in the 110-year-old building at 1907 Michigan Ave. as part of a deal announced six months ago. In all, about 220 people are expected to work in the building. The move “gives our teams the workspace they need to promote collaboration and big thinking, and an urban setting that delivers crucial insight for both programs,” Sherif Marakby, vice president of autonomous vehicles and electrification for Ford, said in a statement. In an interview, Marakby said the Corktown move marks Ford’s return to Detroit, the city where it was born. “Detroit is definitely on a comeback,” he said. “There’s a lot of great things that are happening in Detroit. In terms of us working in an urban area, that represents where we want to launch autonomous and electric vehicles.” The Michigan Central Station redevelopment, if it materializes,

DIY homes sales platform to be introduced By Annalise Frank afrank@crain.com

CRAIN’S DETROIT BUSINESS

Ford Motor Co. has begun moving electric and autonomous vehicle unit workers into The Factory in Corktown on Michigan at Trumbull.

Need to know

About 220 people are expected to work in The Factory building J

J Dearborn-based automaker expected to build a broader campus in the Detroit neighborhood J No deal between Ford and the Moroun family for train station announced yet

a broader campus in the neighborhood west of downtown. It would also be one of the most transformative and iconic redevelopment projects in recent memory. Marakby declined to comment about Ford’s plans to purchase the train station, saying only that the automaker has plans to grow in Detroit

and will announce more in the future. He also said Ford will run shuttles to ferry employees between Detroit and its offices in Dearborn. The Factory at Corktown is 45,000 square feet and was built in 1908. Automotive News reporter Michael Martinez contributed to this report.

Detroit-based In-House Realty, a sister company of Quicken Loans Inc., purchased online marketplace ForSaleByOwner.com LLC for $2.5 million. ForSaleByOwner.com assists homeowners in selling on their own, offering both resources and listings. In-House Realty bought the site from Chicago-based owner Tronc Inc. Wednesday. The purchase price was disclosed in an SEC filing by Tronc. In-House Realty pairs home buyers and owners with real estate agents. “We are in relentless pursuit of eliminating the complexities and stress that can sometimes accompany buying or selling a home,” Doug Seabolt, the company’s CEO, said in a

Need to know J $2.5 million purchase closed Wednesday J Detroit-based real estate connector service to launch new platform J To combine services for "end-to-end" home buying and selling experience

PREPARING FOR THE FUTURE OF BUSINESS We’re invested in Michigan’s success. That’s why we offer programs that create a forward-looking workforce and help businesses succeed: • • • •

Leading-edge programs in business analytics, small business management, and entrepreneurship Hands-on learning opportunities, including our new Bloomberg Trading Lab iLabs, the University’s center for innovation research Professional development workshops on project management and other high-demand skills

Learn how we can help you or your organization thrive. umdearborn.edu/cob

would anchor what is expected to be

news release. “In the coming months, In-House Realty will introduce a fully integrated platform that will combine home search, connecting consumers with one of our trusted partner agents and partnering with Quicken Loans’ Rocket Mortgage to provide the world with the clearest,

“We are in relentless pursuit of eliminating the complexities and stress that can sometimes accompany buying or selling a home.” — Doug Seabolt, In-House Realty CEO

simplest and least-stressful end-toend home-buying and home-selling experience found anywhere.” The new platform will connect a variety of services. It hasn’t been named yet and is still “under wraps,” Quicken Loans spokesman John Perich said. ForSaleByOwner.com’s branding will remain the same for the time being, Perich said. No staffing changes are planned. Rock Holdings Inc., the parent company of In-House Realty and Quicken Loans, and In-House Realty also acquired technology platform OpenHouse Realty, and marketing service providers LowerMyBills and ClassesUSA last year, according to the release.

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

International Champions Cup bolsters growth with House of Soccer showcase in Detroit By Bill Shea bshea@crain.com

Billionaire real estate developer and Detroit native Stephen Ross is doubling down on his bet that soccer’s popularity as a spectator sport will continue to grow in the United States. Ross, who has deep ties to the University of Michigan, five years ago launched the International Champions Cup summer exhibition tournament that stages matches by high-profile European clubs in stadiums across the United States. It will pit global soccer powerhouses Liverpool FC and Manchester United in a match at Michigan Stadium on July 28, the third such ICC game at the Big House since 2014. The tournament is staged by Relevent Sports, a unit of Ross’ New York City-based RSE Ventures investment and marketing firm. One aspect of Ross’ increased investment in soccer will manifest itself locally with the weeklong “House of Soccer” e nt e r t a i n m e nt Stephen Ross showcase in Detroit and a massive tailgate in Ann Arbor before the Liverpool-Manchester United match. Relevent and the ICC are taking simple exhibition matches, albeit one featuring the world’s best-known European clubs, and turning them from mere games into spectacles. Or at least that’s the goal, said Daniel Sillman, CEO of the International Champions Cup and Relevent Sports. In addition to the soccer celebration before the match here and in other cities, Relevent this year will launch a four-team women’s tournament and has plans for a major youth soccer initiative that will be announced in coming weeks, Sillman said. Relevent is now functionally an event, media and content company — the natural out-growth of its strategy after five years of tournaments. The 2018 ICC tournament is 18 teams playing from July 20-Aug. 12 in 14 U.S. markets, plus seven in Europe and in Singapore. “The big evolution is looking at ourselves,” Sillman said. “We’re in the live entertainment business. It’s really understanding that as we evolve, we’re in the business of delivering an amazing live experience for fans. Our business strategy is to grow the game of soccer. We’re going to make an impact in all facets.” The weeklong House of Soccer, whose details will be announced in the next few weeks, will include a showcase of local food, music, art, fashion, games and likely include celebrities, concerts, viewing parties and participation in some by the city’s sports teams, Sillman said. “We want to be able to provide unique experiences around the tournament,” he said. Similar events are conducted by the U.S. major leagues in the run-up to their championship games, such as the NFL Experience during Super Bowl week and Foot Locker’s House of Hoops retail event during the NBA’s all star weekend. The ICC is using those events as templates for an even greater party, Sillman said.

Global soccer powerhouses Liverpool FC and Manchester United will play July 28 at Michigan Stadium as part of the International Championship Cup. MANUTD.COM

Need to know

House of Soccer extravaganza in Detroit to precede Michigan Stadium ICC match 

 Liverpool plays Manchester United at Big House on July 28  ICC is owned by billionaire Detroit native Stephen Ross

“We’re going to put it on steroids,” he said. The ICC launched the House of Soccer concept last year for a match in Miami, where Ross owns the NFL’s Miami Dolphins, and a highlight was a celeb soccer game led by rapper Drake and former Michigan State basketball player turned NBA all star Draymond Green. Beyond Detroit, there will be House of Soccer events this summer in Los Angeles, Miami, New York City and Singapore. The goal for next year is to have them in every ICC match city, Sillman said. In Ann Arbor, there will be an elaborate tailgate atmosphere before the game. “We want to put a match up that’s on par with Michigan and Ohio State,” Sillman said.

Big House, big crowds The Big House has been the successful backbone of the ICC tournament. The stadium saw the largest crowd to ever watch a soccer game in U.S. history when Manchester United and Real Madrid drew 109,318 fans for a 2014 ICC match. A 2016 ICC match between Real Madrid and Chelsea FC was played in front of 105,826 fans at the Big House, the second-largest U.S. soccer attendance record. Crain’s broke the news March 21 that the tournament would return for the third time to 107,601-seat Michigan Stadium. This year’s game at the Michigan Stadium likely will draw another enormous crowd, because it’s a rare opportunity for American fans to see two of the world’s most popular soccer clubs. Both have sprawling presences on social media — 18 million followers on

Twitter and 74 million on Facebook for Man U, and 10.1 million Twitter followers and 31 million on Facebook for Liverpool, for example. That’s why their match is getting the ICC’s biggest stage, which also has nostalgia and school pride elements for Ross. “Michigan Stadium is obviously a special place,” Sillman said. “The sheer size of the stadium is a huge piece of it. The ability to generate an entertainment experience that unique because of the amount of people there, replicates European football culture. It’s also pretty obvious that the university means a little bit to Stephen.” Sillman was politely understating that last part: Ross has donated more than $300 million to the university, funding a sprawling expansion of the athletic department’s facilities and also construction of the business school that bears his name. Ross earned an accounting degree from Michigan in 1962. Today, he is chairman and majority owner of The Related Cos. LP, the real estate development firm he founded in New York in 1972, and he’s estimated by Forbes to be worth $7.6 billion. He’s a Detroit native who grew up in Miami Beach and lives today in New York. His uncle was the late Max Fisher, the noted Detroit philanthropist and industrialist. Ross and Matt Higgins, formerly executive vice president of business operations for the New York Jets of the NFL, co-founded RSE Ventures in 2012 to focus on sports, entertainment and technology. That gave birth a year later to the soccer tournament. The ICC replaced a similar series of preseason exhibition games played in the U.S. from 2009 to 2011 called the World Football Challenge.

Bucks for Michigan The University of Michigan will cash in on Ross’ soccer bet. Relevent will pay the university a $500,000 license fee for use of the stadium from July 23-30, according to terms of the contract between the company

and university obtained by Crain’s under the Freedom of Information Act. After that, the university will get $1 million if total ticket sales reach $9.4 million. After that threshold, the school keeps 30 percent of any further ticket revenue, and Relevent keeps 70 percent. UM also gets $100,000 if ticket sales reach 97,500. The terms of the 40-page contract also call for Relevent to use Michigan’s food and beverage concessionaire, Gaithersburg, Md.-based Sodexo, and its retail merchandise concessionaire, Ann Arbor-based MDen, for the game. Stadium rent details vary by market. For the 2014 match, UM was paid a lump sum of $2.6 million by match organizers for a 16-day lease of Michigan Stadium.

How the ICC works Relevent Sports signed deals with Man U and Liverpool to play in the ICC, which is how it populates the tournament: Organizers contract with the association teams — that’s what professional soccer teams are called, as opposed to national teams — to play in an exhibition tourney (which some clubs see as a preseason tune-up to their league play). Relevent has declined to disclose how much the teams are paid. The company makes money by selling the domestic and international television broadcasting rights — ESPN has the U.S. contract, and other networks have overseas deals — along with the sale of corporate sponsorships, tickets, concessions and retail merchandise. It also expects to generate revenue from its House of Soccer events, the new women’s tournament and the pending youth soccer effort. Major brands have signed sponsorship deals with the ICC. White Plains, N.Y.-based Heineken USA Inc. in May 2016 became the tournament’s presenting sponsor, replacing Irish beer giant Guinness. Other major sponsorship deals are with Detroit-based Ally Financial Inc., Florida-based car rental giant The

Hertz Corp., Purchase, N.Y.-based Mastercard Inc., Pepsi’s Gatorade Co. Inc., Japanese video game maker Konami, Chicago-based online ticket seller Vivid Seats and Xyience Energy Drink owned by Texas soda maker Big Red Ltd. It’s unclear how much each pays to be part of the ICC. Sillman declined to discuss the financial aspects of the tournament, but did offer a few details — including that all revenue stays within Relevent and that Ross doesn’t profit from any of it. “We have significantly reinvested every dollar (into the tournament),” Sillman said. “Stephen has never taken a penny out of the business.” That’s because the tournament and its growing portfolio of related properties — which Sillman termed “franchises” — are an investment in what Ross sees as a significant growth domestic market: Soccer. Staging a women’s ICC is part of that growth effort. Scheduled to play are the women’s teams from Manchester City, Paris St.-Germain, Chelsea and last year’s National Women’s Soccer League runner-up, the North Carolina Courage. After two doubleheaders, the championship game will be on July 29 at Hard Rock Stadium, the home of Ross’ Miami Dolphins in Miami Gardens. The women’s tournament, which will have its final aired on ESPN2, is expected to increase to 12 teams next year. The ICC also has plans to announce a youth soccer initiative this spring, Sillman said. Sillman, 29, has been in his current role since July 2017. He was the director of business development at Relevent Sports’ majority owner, RSE Ventures, prior to that. Sillman, a Birmingham native who earned a finance degree from Michigan’s Ross Business School in 2010, previously founded Compass Management Group before selling it in 2016 and then joining RSE Ventures. Bill Shea: 313 (446-1626) Twitter: @Bill_Shea19

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

Re t u r n O n

PEOPLE

PROGRAMS

What’s your return on investment & people?

BEDROCK

LIFE ADVISOR EMPLOYEE ASSISTANCE PROGRAMS

LIFE ADVISOR WELLNESS PROGRAMS

ORGANIZATIONAL & LEADERSHIP DEVELOPMENT

HUMAN EFFECTIVENESS TRAINING

CAREER TRANSITION SERVICES

WORKPLACE SUBSTANCE ABUSE SERVICES

VOICE YOUR CONCERN REPORTLINE

INCIDENT & CRISIS MANAGEMENT

ulliance.com | 866.648.8326 |

10TH ANNIVERSARY

Sunday, June 10, 2018 MEADOW BROOK HALL 1 PM - 4 PM ENJOY FOOD FROM MICHIGAN’S TOP RESTAURANTS, TASTE 100 TYPES OF THE FINEST WINE, VIEW REMARKABLE CLASSIC CARS, ALL WHILE GIVING BACK TO YOUR COMMUNITY. PROCEEDS BENEFIT SCHOLARSHIPS FOR STUDENTS IN OAKLAND COMMUNITY COLLEGE'S CULINARY STUDIES INSTITUTE AND OTHER VOCATIONAL PROGRAMS.

Thank You To Our Generous Sponsors M A G N U M Access Interactive Great Lakes Wine & Spirits Arrow Electronics, Inc. Atlas Oil Company and Sam & Nada Simon Foundation J E R O B O A M Barton Malow Company Cambridge Consulting Group Kelly Services Celani Family Vineyards Comcast Business Huntington Bank S O M M E L I E R Meijer Charity Motors Michigan Restaurant Association JP Morgan Chase Peter Basso Associates MP Tool & Engineering Plum Market Ryder Suburban Collection The Tyranski and Totonchi Group Merrill Lynch TMP Associates UHY Advisors, Inc. VMware Wilson Rode, PLLC I M P E R I A L

M E D I A Crain’s Detroit Business dbusiness Hour Detroit Jewish News News/Talk 760 WJR Steward Media The Social D C O R P O R A T E Doeren Mayhew DTE Energy Foundation Hylant Integrated Design Solutions Korotkin Insurance Group Kowalski Companies, Inc. Norma & David Stone St. John Providence

FOR MORE INFORMATION VISIT THEGARDENPARTYMICHIGAN.ORG

Chicago-based Foodworks is working with Bedrock LLC to open food stations in cafes at three Bedrock-owned properties in Detroit, including the Press Room Cafe at 615 W. Lafayette Blvd.

Foodworks brings rotating lunch options to Detroit By Annalise Frank afrank@crain.com

A Chicago hospitality company is placing rotating lunch options in downtown Detroit office buildings. Foodworks aims to give office workers more variety and local restaurants more visibility. It set up stalls and signs in three Bedrock LLC-owned buildings, rotating restaurants through for weeklong stays, where they serve meals through the lunch rush. Foodworks is an arm of Charlotte, N.C.-based food service giant Compass Group USA’s Eurest division. Bedrock is a Eurest client. Over the past several months, Foodworks has set up food stalls in the Press Room Cafe at 615 W. Lafayette Blvd., Marketplace at One Campus Martius and QZine at Chase Tower. The Press Room is open to the public, but the others are for building tenants only. A website with schedules and menus is expected to launch in a couple weeks, said Jim Caldwell, director of Foodworks. As it ramps up, Foodworks plans to connect 20-30 partner restaurants with 30 or so office buildings and other venues for varying lengths of stay, said Jim Kallas, Eurest division president. In addition to Bedrock buildings, it’s also operating out of DTE Energy Co.’s headquarters in Detroit and will soon be doing the same for Blue Cross Blue Shield of Michigan. The concept will expand from downtown Detroit to the greater metro area, as well, pairing buildings with nearby restaurants, Kallas said. It’s also offering similar services in Chicago, Phoenix, Denver and Minneapolis. “We partner with local community restaurants that are kind of hip, versus a chain ... local Detroit area brands, things that people would identify with,” Kallas said. “They go for a week or so into an office setting, whether it’s in an existing cafe, lobby, break room.” Foodworks provides the equipment and infrastructure, and restaurant owners supply food and labor, Kallas said. The office buildings don’t pay for the service. Foodworks

Need to know

JJChicago hospitality company operating food stalls in Bedrock office buildings, DTE HQ JJAims to increase lunch options, bring more visibility to local restaurants JJInlaws Hospitality Group’s Johnny Noodle King, Fist of Curry expected to set up shop soon

gets a commission from the restaurants, but Kallas didn’t disclose specifics. “We are excited to partner with Foodworks to bring dining entrepreneurship into the workplace so our team members and tenants have a front row seat to all of the great food and beverage innovation taking place in Detroit,” Bedrock CEO Jim Ketai said in a news release. Restaurants operating Foodworks booths: J Beirut Bakery, a family-run Lebanese bakery in Redford Township J 7 Greens, a salad-focused cafe in Detroit and Birmingham J Byblos Cafe & Grill, a Middle Eastern restaurant in Detroit J Pork & Mindy’s, a Chicago-based barbecue restaurant J Salsarita’s Fresh Mexican Grill, a national chain based in Charlotte, N.C., that has several locations in metro Detroit Inlaws Hospitality Group is signed on, but its Johnny Noodle King, Green Dot Stables and recently opened Fist of Curry haven’t yet joined the serving rotation, Caldwell said. Foodworks’ venture is one in an increasing number of nontraditional lunch options for downtown Detroit professionals. The Downtown Detroit Partnership’s Downtown Street Eats food truck program has grown. Pittsburgh-based Galley Group plans to open a food hall in the fall in the former Federal Reserve building as a yearlong incubator space for four food concepts at a time. And Downtown Detroit Markets, produced by Bedrock and the Quicken Loans Community Investment Fund, will include a chef incubator and beer garden this summer.

C R A I N â&#x20AC;&#x2122; S D E T R O I T B U S I N E S S // M a y 2 8 , 2 0 1 8

CRAINâ&#x20AC;&#x2122;S PRIVATE 200 Our annual ranking of the largest privately held companies in Southeast Michigan, Pages 28-37.

Biggest gainers Company The Christman Co.

% change in revenue , 2016-17 205.7%

Frank Rewold and Son Inc.

161.9%

Oliver/Hatcher Construction and Development Inc.

69.8%

Caniff Electric Supply

66.5%

Commercial Contracting Group Inc.

61.1%

Motor City Electric Co.

50.5%

Arbor Bancorp Inc. (Bank of Ann Arbor)

37.2%

Atlas Oil Co.

36.4%

Soave Enterprises LLC

35.0%

E.W. Grobbel Sons Inc.

30.9%

Largest companies by number of employees Company Worldwide employees Penske Corp.

53,827

International Automotive Components 31,000 Rock Ventures

28,742

Ilitch companies

22,839

Belfor Holdings Inc.

7,767

Piston Group

7,759

Seko Worldwide Detroit

6,636

Plastipak Holdings Inc.

6,400

Acro Service Corp.

6,323

MSX International Inc.

6,051

Private 200 by County County Number of companies Oakland 90 Wayne 83 Macomb 21 Washtenaw 5 Livingston 1

Top cities Detroit

Southfield 28 Troy 15 Livonia 11 Farmington Hills

Plymouth 8 Warren 8 Dearborn 6 Taylor 6 Auburn Hills

GETTY IMAGES/ISTOCKPHOTO

C R A I N â&#x20AC;&#x2122; S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

CRAIN'S LIST: PRIVATE 200

Ranked by 2017 revenue

Detroit Revenue Revenue area Worldwide ($000,000) ($000,000) Percent employees employees 2017 2016 change Jan. 2018 Jan. 2018 Type of business

Company Address Phone, website

Top executive

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

Roger Penske chairman

$31,800.0

$30,098.0

5.7%

1,435

58,870

Retail automotive, truck leasing and logistics, motorsports racing

Rock Ventures, Detroit 48226 (800) 251-9080

6,560.0 B

6,500.0 B

0.9

17,819

29,835

Services organization that connects and serves a portfolio of companies, investments, and real estate

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

Dan Gilbert chairman and founder Robert S. "Steve" Miller president and CEO

4,400.0

6,000.0 C

-26.7

697

22,000

Global supplier of interior automotive components and systems including cockpits and overhead systems

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

David Cotton CEO and chairman

3,810.6

3,732.0

2.1

Ilitch companies, Detroit 48201 (313) 471-6600; www.ilitchcompanies.com

3,600.0

3,400.0

5.9

6,900

24,475

Food, sports and entertainment organization

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

Christopher Ilitch president and CEO, Ilitch Holdings Inc. William Young president and CEO

2,782.4

2,689.4

3.5

675

6,400

Manufacturer of rigid plastic containers for the consumer products industry

Barton Malow Co., Southfield 48034 (248) 436-5000; www.bartonmalow.com

Ryan Maibach president and CEO

2,591.0

2,425.5

6.8

1,324

2,200

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

Lon Offenbacher president, CEO and founder NA D

2,500.0

2,800.0

-10.7

785

14,496

General contracting, construction management, design/build, engineer-procure-construct, integrated project delivery, self-perform services: civil, concrete, rigging and interiors Global tier-one automotive supplier of closure systems, interior systems, motors and electronics, and roof systems

2,404.2 B

2,218.5 B

8.4

Rank

1 2

5 6 7 8 9 10

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

Government health insurance programs

Ambassador Bridge and various trucking and logistics companies

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

David T. Fischer chairman and CEO

2,294.2

2,130.4

7.7

1,960

2,143

Automobile dealerships

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

2,198.9

2,154.8

2.0

345

1,201

Wholesale food distributor

2,100.0

2,050.0

2.4

260

1,817

Provides insurance services including distribution, brokerage, underwriting, reinsurance, real estate, premium financing, inspections, audits, risk management and third-party claims administration Automotive seating/interiors

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

Earl Ishbia Jay Leavy co-CEOs Alan Jay Kaufman chairman, president and CEO

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

Ronald Hall Jr. president and CEO

2,009.5

2,205.6

-8.9

1,099

2,069

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

Sheldon Yellen CEO

1,794.8

1,590.2

12.9

2,233

Property restoration

Jeffrey Cappo president

1,760.3 F

1,567.6 F

12.3

Automotive dealerships

Victory Automotive Group Inc., Canton Township 48188 (734) 495-3500; www.victoryautomotivegroup.com Piston Group G, Southfield 48075 (313) 541-8674; www.pistongroup.com

1,707.9

1,581.9

8.0

1,108

7,759

Automotive supplier

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

Vinnie Johnson founder, chairman & CEO Anthony Soave president and CEO

1,610.4

1,193.0

35.0

687

1,786

Diversified management holding company

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

John Rakolta Jr. chairman and CEO

1,500.0

1,450.0

3.4

347

1,000

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

Jim Bonahoom president

1,303.0

1,280.0

1.8

600

Construction: general contracting, design-build, construction management, engineer/procure/construct, virtual design, digital mapping Wholesale meat packer and processor; wholesale meat, poultry and seafood distributor

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

Gerald Diez CEO

1,190.0

1,152.0

3.3

450

United Shore Financial Services LLC, Troy 48083 Mat Ishbia president and CEO (248) 833-5000; www.unitedshore.com

1,086.0

857.0

26.7

2,400

Mortgage lender

925.2

816.8

13.3

1,001

Automobile dealerships

900.0 H

1,100.0 B

-18.2

Global provider of advanced supply chain services that offers a full range of third- and fourth-party logistics services

16 17 18

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

LaFontaine Automotive Group, Highland Township 48357 (248) 887-4747; www.thefamilydeal.com

Michael LaFontaine chairman/owner Maureen LaFontaine president/owner Brian Enright CEO

Aluminum and steel sales, processing and warehousing companies

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

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

Kenneth Eisenberg chairman and CEO

882.0

774.0

14.0

Steel service center

Amerisure Mutual Insurance Co., Farmington Hills 48331 (248) 615-9000; www.amerisure.com

Gregory Crabb president and CEO

838.9

835.9

0.4

357

737

Property and casualty insurance company

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 Crain's estimate. C Includes the spun-off soft-trim operations, Auria Solutions Ltd. Shanghai Shenda Co. Ltd. (Shenda), and International Automotive Components (IAC) Group which officially closed a joint venture transaction, forming Auria Solutions Ltd. (Auria) in September 2017.

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 Sherwood Food Distributors merged with San Diego-based Harvest Food Distributors in April 2017. The firms will continue to do business under their current names under the deal. F Automotive News. G Holding company for Piston Automotive, Irvin Automotive, Detroit Thermal Systems and Airea. H Transport Topics Top 50 Logistics Companies.

SEE PAGE 29

C R A I N â&#x20AC;&#x2122; S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

CRAIN'S LIST: PRIVATE 200

FROM PAGE 28 Rank

Company Address Phone, website

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

Top executive

Ranked by 2017 revenue

Detroit Revenue Revenue area Worldwide ($000,000) ($000,000) Percent employees employees 2017 2016 change Jan. 2018 Jan. 2018 Type of business

Robert Baidas CEO Loren Baidas president Donald Slominski Jr. president and CEO

$827.6

$707.0

17.1%

650

1,550

Recreational vehicle dealership

823.0

724.0

13.7

335

1,460

Electric/electronics distributor

McNaughton-McKay Electric Co., Madison Heights 48071-4134 (248) 399-7500; www.mc-mc.com

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

Andrew Greenlee president and CEO

810.0

750.0

8.0

2,341

4,689

Plastic injection molder, extruder, thermal compression molder

Art Van Furniture Inc. B, Warren 48092 (586) 939-0800; www.artvan.com

Ronald Boire C president and CEO

800.0

660.0

21.2

1,742

38,500

Retail home furnishings

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

Thom Lipari president and CEO

775.0

702.0

10.4

763

1,350

Wholesale food distribution. Lipari Foods' truck fleet delivers to 15 states

Neapco Holdings LLC, Farmington Hills 48331 (248) 669-6500; www.neapco.com

Kenneth Hopkins president and CEO

757.0

702.0

7.8

553

2,953

Designs, manufactures and distributes driveline systems and service parts

Carhartt Inc., Dearborn 48126 (313) 271-8460; www.carhartt.com

Mark Valade chairman and CEO

752.1

677.8

11.0

517

4,668

Apparel manufacturer

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

691.3

506.7

36.4

115

386

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

Sam Simon founder and chairman Kathleen McCann chair and CEO

646.0

525.0

23.0

548

1,694

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

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

Evan Lyall CEO

567.3

487.0

16.5

3,550

4,200

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

Arvind Pradhan president and CEO

538.0

471.0

14.2

3,386

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

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

Robert Barrick president

534.4

491.9

8.6

Petroleum retailer and wholesaler

MSX International Inc. E, Detroit 48226 (248) 829-6042; www.msxi.com

Frederick Minturn president and CEO

526.0

0.0

1,250

Business process outsourcing service provider for global automotive retail segments and human capital managed service provider

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

James Proppe managing partner

520.9

481.8

8.1

1,154

2,456

Orleans International Inc., West Bloomfield 48322 (248) 855-5556; www.orleansintl.com

Earl Tushman president & CEO

500.0

610.0

-18.0

Meat importer

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

James B. Nicholson president and CEO

500.0

471.0

6.2

Manufacturer, marketer and distributor of industrial chemicals

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

Kari Elliott CEO

490.0 F

457.5 F

7.1

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

Commercial Contracting Group Inc., Auburn Hills 48326 (248) 209-0500; www.cccnetwork.com

Stephen Fragnoli president and CEO

480.0

298.0

61.1

165

General contractor, machinery installer, building interiors, concrete

Aristeo Construction Co., Livonia 48150 (734) 427-9111; www.aristeo.com

Joseph Aristeo president

448.6

402.8

11.4

425

567

General contractor and construction manager

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

Chris Snyder general manager

435.0 F

446.2

-2.5

Automobile dealerships

NYX Inc., Livonia 48150 (734) 462-2385; www.nyxinc.com

Chain Sandhu chairman Jatinder-Bir Sandhu CEO Dale Wieczorek chairman, president and CEO Steve Jackson president and CEO

423.0 G

402.0

5.2

Automotive supplier specializing in plastic interiors and sub-system components

419.8

279.0

50.5

900

1,012

Electrical contractor

403.1 H

378.2 H

6.6

11,000

Pizza franchisor

Gary Goodman co-owner Mark Goodman co-owner Ryan Greenawalt CEO

400.0 I

400.0 F

0.0

Sales and support services company for hot-rolled and cold finished steel bar products

370.0

330.0

12.1

340

820

Heavy construction equipment, material handling equipment, industrial equipment, cranes

33 34 35

46 47 48 49 50

Motor City Electric Co., Detroit 48213 (313) 921-5300; www.mceco.com Hungry Howie's Pizza Inc., Madison Heights 48071 (248) 414-3300; www.hungryhowies.com Eaton Steel Bar Co., Oak Park 48237 (248) 398-3434; www.eatonsteel.com

Alta Equipment Co., Livonia 48150 (248) 449-6700; www.altaequipment.com

Petroleum distribution, innovative fueling solutions

Accounting and management consulting firm

B Art Van Elslander, founder, sold the company to Boston-based private equity firm Thomas H. Lee Partners in February 2017. C Replaced Kim Yost as president and CEO, effective April 30. D Bought by Washington, D.C.-based private equity firm The Carlyle Group in September. E Acquired by Bain Capital Private Equity, Boston, on Jan. 9, 2017. F Crain's estimate. G Company estimate. H Systemwide sales. I Projected revenue from Metal Center News Service Center Top 50.

SEE PAGE 30

C R A I N â&#x20AC;&#x2122; S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

CRAIN'S LIST: PRIVATE 200 FROM PAGE 29

Ranked by 2017 revenue

Detroit Revenue Revenue area Worldwide ($000,000) ($000,000) Percent employees employees 2017 2016 change Jan. 2018 Jan. 2018 Type of business

Company Address Phone, website

Top executive

Acro Service Corp., Livonia 48152 (734) 591-1100; www.acrocorp.com

Ron Shahani president and CEO

$354.1

$331.8

6.7%

350.1

338.3

3.5

110

404

Stewart Management Group Inc., Harper Woods Gordon Stewart president 48225 (313) 432-6200; www.gordonchevrolet.com Gregory Jackson Prestige Automotive , St. Clair Shores 48080 chairman and CEO (586) 773-2369; www.prestigeautomotive.com

Staff augmentation, outsourcing and IT and engineering consulting, application development and enablement, relational database design and development, Web design and development Automobile dealerships

350.1

360.7 B

-2.9

150

Automobile dealerships, real estate and insurance

Detroit Lions Inc., Allen Park 48101 (313) 216-4000; www.detroitlions.com

Martha Ford owner

341.0 C

321.0 C

6.2

National Football League franchise

Strategic Staffing Solutions Inc., Detroit 48226 (313) 596-6900; www.strategicstaff.com

Cynthia Pasky president and CEO

340.0

330.0

3.0

1,100

3,600

340.0

338.0

0.6

709

2,967

331.5 D

326.5

1.5

325.0

313.0

3.8

1,500

2,100

Rank

51 52

55 55 57 58 59 60

Great Expressions Dental Centers PC, Southfield Dan Hirschfeld CEO 48034 (248) 203-1100; greatexpressions.com Tony Elder, Elder Automotive Group, Troy 48083 president; Robert (248) 585-4000; www.elderautogroup.com Elder, VP Jack Lawless III Belle Tire Distributors Inc., Allen Park 48101 CEO (313) 271-9400; www.belletire.com

63 64

Automotive dealerships

Retailer of tires and automotive services

The Ideal Group Inc., Detroit 48209 (313) 849-0000; www.weareideal.com

Frank Venegas Jr. chairman and CEO

321.7

307.0

4.8

313

606

HTC Global Services Inc., Troy 48084 (248) 786-2500; www.htcinc.com

Madhava Reddy president and CEO

320.0 D

267.7 D

19.6

Schostak Family Enterprises E, Livonia 48152 (248) 357-6183; www.schostak.com; www.teamschostak.com

Mark Schostak, coowner, executive chairman, TEAM Schostak Family Restaurants; David Schostak, co-owner, co-CEO, Schostak Brothers & Co. Inc.; Robert Schostak, coowner; CEO, Templar Baker Group LLC and coCEO, Schostak Brothers & Co., Inc.; Jeffrey Schostak, president, Schostak Development and Jacob Schostak, MOD Pizza brand leader, TEAM Schostak Family Restaurants Ronald Staley, senior VP, Southeast Michigan operations James Riehl Jr. president and CEO

315.1

298.6

5.5

789

1,383 F

305.9

100.0

205.7

Construction management, general contracting, design/build, facilities planning and analysis, program management, real estate development, self-perform skilled construction trades

297.4

283.7

4.8

473

Automobile dealership

281.0

235.0

19.6

232

Construction services, program management, construction management, design and build

271.0

Appliances, electronics and car audio, bedding and furniture

264.0 D

260.0 D

1.5

Automobile dealerships

Consulting and staff augmentation services, vendor management programs, executive search services, call center technology and a domestic IT development center Dental care, including general and preventive care, cosmetic, orthodontic and specialty dental services

The Christman Co., Detroit 48202-3030 (313) 908-6060; www.christmanco.com

Jim Riehl's Friendly Automotive Group Inc., Warren 48093 (586) 979-8700; www.jimriehl.com Roncelli Inc., Sterling Heights 48312 (586) 264-2060; www.roncelli-inc.com

Gary Roncelli, chairman and CEO; Thomas Wickersham, president and COO Gordon Hartunian chairman

General contracting, specialized miscellaneous steel manufacturing and distribution of protective barrier products, global supply chain management, other Application development and maintenance, business process management, document and content management and project management office services NA

ABC Appliance Inc., Pontiac 48343 (248) 335-4222; www.abcwarehouse.com

Snethkamp Automotive Family, Highland Park 48203 (313) 868-3300; www.snethkampauto.com

Mark Snethkamp president

Buff Whelan Chevrolet, Sterling Heights 48313 (586) 939-7300; www.buffwhelan.com

Kerry Whelan president

261.6

224.8

16.4

166

Automotive dealership sales and service

SmithGroupJJR Inc., Detroit 48226 (313) 983-3600; www.smithgroupjjr.com

Jeffrey Hausman, Detroit office director; Mike Medici, president and managing partner William Pickard chairman

256.7

235.9

8.8

350

1,188

Architecture, engineering and planning

255.7

234.4 G

9.1

207

1,724

Warehousing, contract assembly, freight forwarding, contract logistics, procurement, quality control, and inventory management

68 69

Global Automotive Alliance LLC, Detroit 48210 (313) 849-3222; www.gaasolutions.com

B Automotive News. C From Forbes. Net of stadium revenue used for debt payments. D Crain's estimate. E Data includes TEAM Schostak Family Restaurants, Schostak Brothers & Co., Inc., Schostak Development, Schostak Family Office, Schostak-Fisher Group and Templar Baker Group LLC F Includes full-and part-time employees. G Vitec, one of Global Automotive Alliance's member companies, sold the assets of its tank manufacturing business in 2015. LIST RESEARCHED BY SONYA D. HILL

SEE PAGE 31

C R A I N â&#x20AC;&#x2122; S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

CRAIN'S LIST: PRIVATE 200 FROM PAGE 30 Rank

Company Address Phone, website

Top executive

Compuware Corp., Detroit 48226 (313) 227-7300; www.compuware.com

Chris O'Malley CEO

Chase Plastic Services Inc., Clarkston 48346 (248) 620-2120; www.chaseplastics.com

70 72

AccessPoint LLC, Farmington Hills 48334 866-513-3861; apteam.com

Ranked by 2017 revenue

Detroit Revenue Revenue area Worldwide ($000,000) ($000,000) Percent employees employees 2017 2016 change Jan. 2018 Jan. 2018 Type of business

$250.0 B

0.0%

Mainframe software-dedicated business

Kevin Chase, president; Carole Chase, VP Greg Packer CEO and chairman

250.0

219.0

14.2

127

Specialty engineering thermoplastics distributor

245.8

229.3

7.2

115

Full service HR, staffing and recruiting for manufacturing, information technology and health systems

240.0

200.0

20.0

136

385

217.2

186.6

16.4

583

1,285

Distributor of pipe, valves, fittings, heating and cooling, control and instrumentation, boilers, pumps repair, steam products, sanitary piping products, fire protection. Manufacturing

Hatch Stamping Co., Chelsea 48118 (734) 475-8628; www.hatchstamping.com

William McGivern Jr., CEO; Keith Schatko, VP Daniel Craig COO and president

Dykema Gossett PLLC, Detroit 48243 (313) 568-6800; www.dykema.com

Peter Kellett chairman and CEO

212.3

219.0

-3.1

286

774

Law firm

Urban Science Applications Inc., Detroit 48243 (313) 259-9900; www.urbanscience.com

James Anderson president, founder and CEO Mike Beck, VP of global operations; Paul Meloche, VP of sales Keith Crain chairman

211.0

203.5

3.7

384

894

Global retail marketing consulting with a scientific approach

209.0

175.0

19.4

251

673

Global assembly, testing, and welding equipment for the automotive, aerospace, military agriculture, recreational vehicle, and alternativeenergy industries

199.2 C

221.0

-9.9

231

746

Publisher of business, trade and consumer publications and related websites

76 77

The Macomb Group Inc., Sterling Heights 48312 (586) 274-4100; www.macombgroup.com

Fori Automation Inc., Shelby Township 48315 (586) 247-2336; www.foriauto.com

Crain Communications Inc., Detroit 48207 (313) 446-6000; www.crain.com

Royal Oak Ford/Briarwood Ford, Royal Oak 48067 (248) 548-4100; www.royaloakford.com

Eddie Hall Jr. president and CEO

198.8

202.9

-2.0

231

Automobile dealership

Clark Hill PLC, Detroit 48226 (313) 965-8300; www.clarkhill.com

John Hern CEO

193.6

151.5

27.8

242

789

Law firm

Pat Milliken Ford Inc., Redford Township 48239-1492 (313) 255-3100; www.patmillikenford.com

Bruce Godfrey, chairman; Brian Godfrey, president

190.0

186.0

2.2

137

Automobile dealership

Vesco Oil Corp., Southfield 48076 (248) 557-1600; www.vescooil.com

Marjory Epstein chairman

184.0

173.0

6.4

125

222

Distributor of auto and industrial lubricants and chemicals, auto aftermarket products

Frank Rewold and Son Inc. , Rochester 48307 (248) 651-7242; www.frankrewold.com

Frank Rewold president and CEO

182.1

69.5

161.9

Construction management, general contracting, design/build

Humanetics Innovative Solutions Inc., Plymouth Christopher O'Connor 48170 president and CEO (734) 451-7878; www.humaneticsatd.com Jeff Homenik Dearborn Mid-West Co., Taylor 48180 president and CEO (734) 288-4458; www.dmwcc.com

180.0

165.0

9.1

270

650

Designs and manufactures safety equipment, including sophisticated crash test dummies, software modeling, customer engineering solutions, strain and fiber sensors and related test equipment

177.0

172.0

2.9

165

1,293

172.0

146.0

17.8

128

Automotive dealership

167.6

175.6

-4.5

131

Automobile dealerships

Sachse Construction and Development Co. LLC, Todd Sachse, CEO and founder; Steve Detroit 48226 Berlage, president (313) 481-8200; www.sachseconstruction.com and COO Kim Adler 1st Source Servall Inc., Centerline 48105 president (586) 754-9952; www.1stservall.com

167.0

203.7

-18.0

165

General contracting, construction management, design/build and tenant coordination

165.0

155.0

6.5

450

Distributor of appliance parts

Carey Colasanti, CEO; Pat Wysocki, president Jeffrey Tamaroff Automotive Family, Southfield Jeffrey Tamaroff, chairman and CEO; 48034-1928 Marvin Tamaroff, (248) 353-1300; www.tamaroff.com chairman emeritus; Eric Frehsee, VP and Jason Tamaroff, VP Palace Sports & Entertainment LLC, Auburn Hills Arn Tellem Palace vice 48326 chairman (248) 377-0100; www.palacenet.com

162.0

135.0

20.0

200

General contracting and construction management and design/ build; self-perform concrete services

159.9

149.0

7.3

221

Automobile dealerships

154.0 B

154.0

0.0

200 B

Detroit Pistons, The Palace of Auburn Hills, DTE Energy Music Theatre

154.0

120.3

28.0

269

435

Large fabricated structures, final drives, suspension and track systems for Army combat vehicles

84 85 86 87 88 89 90 91 92

Bowman Chevrolet, Clarkston 48346 (877) 433-5922; www.bowmanchevy.com Bill Perkins Automotive Group, Taylor 48180 (734) 287-2600; www.taylorchevy.com

Katie Bowman Coleman president and owner Bill Perkins president

The Colasanti Cos., Macomb Township 48042 (586) 598-9700; www.colasantigroup.com

Material handling systems, construction, tooling/equipment installation, plant maintenance services, life-cycle improvement

Loc Performance Products Inc., Plymouth 48170 Louis Burr CEO (734) 453-2300; www.locperformance.com

George W. Auch Co. (dba Auch Construction), Pontiac 48341 (248) 334-2000; www.auchconstruction.com

Vincent DeLeonardis president and CEO

150.2

172.8

-13.1

105

General contractor and construction manager

Oliver/Hatcher Construction and Development Inc., Novi 48377 (248) 374-1100; www.oliverhatcher.com

Paul Hatcher, president; Paul Oliver, principal

147.2

86.7

69.8

Construction manager, general contractor and design/build

Ray Laethem Inc. , Detroit 48224 (313) 886-1700; www.raylaethem.com

Jeff Laethem president

146.7 B

144.5

1.5

Automobile dealership

Milosch's Palace Chrysler-Jeep-Dodge Inc., Lake Donald Milosch president Orion 48359 (248) 393-2222; www.palacecjd.com

146.6 B

144.4 B

1.5

Automobile dealership

B Crain's estimate. C Business Insurance ceased publication in late 2016.

SEE PAGE 34

in the Great Lakes*

in the Americas*

More than 50 years of private aviation experience and an unrivaled commitment to customer service excellence. *As ranked by Aviation International News, one of the most respected publications in the aviation industry, in their 2018 Fixed-Based Operations Survey.

PentastarAviation.com | 800-662-9612

ÂŠ2018 Pentastar Aviation.

SPONSORED CONTENT

The American Dream

ONE LOAN AT A TIME

A mortgage can be intimidating, but it’s tied to so much more than a stack of files on a desk Story by United Shore for Crain Content Studio

It’s the moment a homebuyer will always remember. The moment a homebuyer becomes a homeowner. The moment they hear the words “Here are the keys to your new home.” For many, it’s an emotional moment, and one we don’t think about enough when we talk about what it takes to get there. Because without a mortgage, that moment doesn’t happen. Mortgages and the mortgage industry in general usually carry a certain stigma. Let’s face it - getting a mortgage can be a challenging and intimidating process. A decade removed from the sub-prime mortgage crisis, the industry as a whole still struggles with its public perception. But here’s the thing: A mortgage is tied to a quintessential idea behind the American dream — home ownership. According to a recent survey by San Francisco-based home improvement lender Hearth, “owning a home I love” ranked higher than any other choice related to the American

dream. Those choices included “starting a family” and “finding a fulfilling career.” A home is much more than brick and mortar; it’s the place where we make memories that shape our lives. When you think about a mortgage from that perspective, it becomes much more than a stack of files on a desk. A mortgage is the vehicle that allows people to live their dreams. Similarly, United Shore is much more than a mortgage company. We are dream makers, helping people achieve their dreams of home ownership. Every day, 2,400-plus team members come to work to be a part of this. Last year, we closed more than 106,000 loans throughout America. That’s more than 106,000 dreams that came true. The goal this year: 132,000. And it doesn’t stop with borrowers. United Shore is home to United Wholesale Mortgage, the No. 1 wholesale lender in the nation. As a wholesale lender, we work exclusively with mortgage brokers. These are small business owners and entrepreneurs who live and work in communities like yours. Through unrivaled client ser-

Photo by United Shore At United Shore, experts help first-time buyers navigate the landscape of buying a home —and celebrate when that American dream becomes a reality.

vice and industry-leading technology, UWM gives mortgage brokers the tools they need to build and grow their business. Our brokers are more than just our clients. They’re our partners. A big part of that partnership is helping consumers understand the benefits of working with mortgage brokers. For years, borrowers have been conditioned to think that when it’s time to get a mortgage, you go to your

SPONSORED BY:

UnitedShoreAmericanDream.indd 1

bank. But when you go that route, you’re limited to the products that the bank has to offer. You also have to keep in mind that while mortgages are a part of a bank’s business, it’s not what they specialize in. When you use a mortgage broker, you’re getting someone who specializes exclusively in home loans. That’s because mortgage brokers only do one thing – mortgages. They are experts at finding the

best loan for each homebuyer’s situation. They know the intricacies of each lender, which helps the entire process run smoothly. And because they have access to better pricing, mortgage brokers save borrowers money by finding lower rates and, more importantly, lower monthly payments. Now you can see why using a mortgage broker is the best option for someone looking to get a home loan. By now, you’re probably wondering how to find one of these mortgage brokers. Findamortgagebroker.com is a great place to start. This website will help connect you with an expert to help navigate the landscape of home buying. This is especially important in an economy where interest rates are on the rise and the market faces a great deal of uncertainty. No matter what the future holds, we all want a piece of the American Dream. Owning a home has always been a part of that. It always will be. Getting the keys to a new home is a life moment you never forget. A mortgage is what makes it possible.

5/17/18 12:32 PM

C R A I N â&#x20AC;&#x2122; S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

CRAIN'S LIST: PRIVATE 200 FROM PAGE 31 Company Address Rank Phone, website

98 99 100 101 102 103 103 103 106 107 108 108

Top executive

Ranked by 2017 revenue

Detroit Revenue Revenue area Worldwide ($000,000) ($000,000) Percent employees employees 2017 2016 change Jan. 2018 Jan. 2018 Type of business

EHIM Inc., Southfield 48033-2154 (248) 948-9900; www.ehimrx.com

Mindi Fynke president and CEO

$145.8

$134.7

8.2%

144

Ghafari Inc., Dearborn 48126 (313) 441-3000; www.ghafari.com

Yousif Ghafari chairman

145.2

151.0

-3.8

761

1,046

Engineering, architecture, process design, consulting, construction services and professional staffing

Devon Industrial Group, Detroit 48226 (313) 221-1600; www.devonindustrial.com

David Burnley president/CEO

145.0

160.0

-9.4

Kar Nut Products Co., Madison Heights 48071 (248) 588-1903; www.karsnuts.com

Nick Nicolay president and CEO

139.1

128.4

8.3

219

Provides construction management, general contracting, program management, design build, pre-construction and decommissioning services Snack food manufacturing and distribution

Chelsea Milling Co., Chelsea 48118 (734) 475-1361; www.jiffymix.com

134.0

132.0

1.5

302

Retail, institutional, food service baking mixes

130.0

126.0

3.2

120

4,400

Systems Technology Group (STG), Troy 48084 (248) 643-9010; www.stgit.com

Howdy Holmes chairman, president and CEO Radhakrishnan Gurusamy president and CEO Anup Popat chairman and CEO

130.0

105.0

23.8

550

2,252

Gorno Automotive Group, Woodhaven 48183 (734) 676-2200; www.gornoford.com

Ed Jolliffe president

130.0

134.0

-3.0

Information technology and IT-enabled consulting services and business process outsourcing IT services and technology enabled health care solutions. Information technology outsourcing; digital services transformation; big data analytics; mobility; cloud integration; software application development leveraging innovation global delivery centers Automobile dealership

Avis Ford Inc., Southfield 48034 (248) 355-7500; www.avisford.com

Walter Douglas Sr., chairman; Mark Douglas, president Robert Gruschow president and CEO

128.5

131.0

-1.9

124

Automobile dealership

128.4

135.3

-5.1

255

504

Industrial manufacturing group, incorporating fabrication, design, assembly, logistics, transport and information technology

John A. James, chairman; Lorron James B CEO Richard Schwabauer president

128.0

129.0

-0.8

114

Global supply chain management providing services in IT, export/ import logistics, assembly, consolidation/deconsolidation

128.0

138.0

-7.2

170

Commercial furnishing, audiovisual distributor

Technosoft Corp., Southfield 48076 (248) 603-2600; www.technosoftcorp.com

Deshler Group Inc., Livonia 48150 (734) 525-9100; www.deshlergroup.com James Group International Inc., Detroit 48209 (313) 841-0070; www.jamesgroupintl.com

National Business Supply Inc. (dba NBS Commercial Interiors), Troy 48083 (248) 823-5400; www.yourNBS.com

Pharmacy benefit manager

Village Ford Inc., Dearborn 48124 (313) 565-3900; www.villageford.com

James Seavitt president and CEO

127.8

124.8

2.4

186

Automotive dealership

National Food Group Inc., Novi 48377-2454 (800) 886-6866; www.nationalfoodgroup.com

Sean Zecman president and CEO

124.9

113.4

10.2

108

Wholesale and retail food manufacturing and distribution, commodity processing

ChemicoMays LLC, Southfield 48033 (248) 723-3263; www.thechemicogroup.com

124.0

108.5

14.3

199

350

Chemical manufacturing, chemical management

Proper Group International Inc., Warren 48089 (586) 779-8787; www.propergroupintl.com

Leon Richardson CEO, chairman, president Geoffrey O'Brien CEO

121.0

105.0

15.2

310

850

114

Secure-24 LLC, Southfield 48033 (800) 332-0076; secure-24.com

Mike Jennings CEO

112.7

93.0

21.2

439

636

Complex plastic injection molds, premium injection molded parts and assemblies, consumer products, polyurethane and skin form tooling, microcellular foam tooling, conformal cooling technologies, vaccuum metalizing, rapid prototyping and web-based management of tooling and process data Global provider of managed cloud and security services, IT operations and application hosting

115

Big Boy Restaurants International LLC, Warren 48091 (586) 759-6000; www.bigboy.com

David Crawford C CEO

111.5

125.0

-10.8

232

116

Roger Zatkoff Co. (Zatkoff Seals & Packings), Farmington Hills 48335 (248) 478-2400; www.zatkoff.com

Gary Zatkoff president and CEO

111.2

105.3

5.6

175

Distributor of seals and packings; manufacturer of gaskets

117

Load One Transportation & Logistics, Taylor 48180 (734) 947-9440; www.load1.com

John Elliott CEO

108.4

87.2

24.3

571

624

Transportation and logistics solutions. Transportation services include ground expedite, air charter, air freight, logistics management, truckload, and specialized curtain-side flatbeds.

118

Advantage Management Group Inc-Advantage Living Centers, Southfield 48075 (248) 569-8400; AdvantageLiving.net

Reginald Hartsfield and Kelsey Hastings, owners

108.0

103.3

4.6

1,671

Skilled-nursing homes, assisted living

MJC Cos., Macomb Township 48044 (586) 263-1203; www.mjccompanies.com

106.9

84.7

26.3

Residential, apartment, commercial construction, builder and developer

Link Engineering Co., Plymouth 48170 (734) 453-0800; www.linkeng.com

Michael Chirco founder and president Roy Link chairman and CEO

106.5

95.0

12.1

340

560

Manufacturer of testing systems and provider of commercial testing services

Roseville Chrysler Jeep Inc., Roseville 48066 (586) 859-2500; www.mikeriehls.com

Michael Riehl president

106.3

110.9

-4.2

Automobile dealership

The Mars Agency, Southfield 48033-7496 (248) 936-2200; www.themarsagency.com

106.1

94.6

12.1

230

400

Advertising and integrated marketing agency with a focus on consumer brands and retail

106.0

83.0

27.7

233

535

Total waste management, paint shop management and industrial cleaning and maintenance

110 111 112 113

119 120 121

Restaurants, food manufacturer

123

MPS Group Inc., Farmington Hills 48331 (313) 841-7588; www.mpsgrp.com

Ken Barnett global CEO and chairman Charlie Williams chairman

124

London Square Specialty Services LLC, Troy 48083 (888) 703-3183; www.mycallcenterteam.com

Jeana Asmaro chief operating officer

105.0

98.0

7.1

103

Business process outsourcing

Miller, Canfield, Paddock and Stone PLC, Detroit Michael McGee CEO 48226-4415 (313) 963-6420; www.millercanfield.com Andra Rush Rush Trucking Corp., Wayne 48184 chairwoman (800) 526-7874; www.rushtrucking.com

104.0

111.0

-6.3

301

438

Law firm

103.0

121.3

-15.1

166

466

Motor carrier, logistics management

102.5

124.1

-17.4

120

General contracting, design build, construction management, program management, pre-construction services

122

125 126 127

DeMaria , Detroit 48202-3008 (313) 870-2800; www.demariabuild.com

Joseph DeMaria Jr., CEO; Anthony DeMaria, president

B Appointed CEO in January. C Succeeded Keith Sirois as CEO effective Jan. 1.

SEE PAGE 35

C R A I N â&#x20AC;&#x2122; S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

CRAIN'S LIST: PRIVATE 200 FROM PAGE 34

Ranked by 2017 revenue

Detroit Revenue Revenue area Worldwide ($000,000) ($000,000) Percent employees employees 2017 2016 change Jan. 2018 Jan. 2018 Type of business

Company Address Phone, website

Top executive

128

BullsEye Telecom Inc., Southfield 48033 (248) 784-2500; www.bullseyetelecom.com

William Oberlin chairman and CEO

$102.0

$100.0

2.0%

190

230

Communications services

129

Marsh Construction (T.H. Marsh), Bloomfield Hills 48304 (248) 586-4130; www.thmarsh.com

Ryan Marsh president and CEO

97.0

90.0

7.8

General contracting, construction management and advisory services.

129

International Extrusions Inc., Garden City 48135 Nicholas Noecker president and CEO (734) 427-8700; www.extrusion.net

97.0

92.0

5.4

310

311

Manufacturer of aluminum extruded profiles, powder-coat painting and fabrication facilities

131

Wolverine Truck Sales Inc., Dearborn 48120 (313) 849-0800; www.wolverinetruckgroup.com

Lynn Terry president

94.6

101.3

-6.6

159

Truck sales, parts and service

132

WorkForce Software LLC, Livonia 48152 (877) 493-6723; www.workforcesoftware.com

Mike Morini CEO

93.4

91.0

2.6

186

597

Workforce management solutions

Phillips Service Industries Inc., Livonia 48150 (734) 853-5000; www.psi-online.com

W. Scott Phillips president and CEO

92.0 B

92.0

0.0

300

370

TransNav Technologies Inc., New Baltimore 48047 (586) 716-5600; www.transnav.com

Percy Vreeken president

91.0

90.0 C

1.1

270

520

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 Trading and manufacturing company specializing in product design and development, tooling fabrication, injection molding and decorating and assembly

Auburn Pharmaceutical Co., Troy 48083 (248) 526-3700; auburngenerics.com

89.3

94.4

-5.3

102

Distributor of generic pharmaceuticals

Atwell LLC, Southfield 48076 (248) 447-2000; www.atwell-group.com

Jeffrey Farber chairman, president and CEO Brian Wenzel president and CEO

89.0

88.3

0.8

124

528

136

E.W. Grobbel Sons Inc. , Detroit 48207 (313) 567-8000; grobbel.com

Jason Grobbel president

89.0 D

68.0

30.9

166

Civil engineering, land surveying, land solutions, land planning, environmental consulting, natural resource management, program management and construction management Corned beef

138

Diversified Computer Supplies Inc., Ann Arbor 48108 (800) 766-5400; www.dcsbiz.com

Joseph Hollenshead chairman, president and CEO

88.5

93.0

-4.8

Distributes imaging/printer supplies, develops IT strategies for clients and supports back-end connectivity with XML feeds, EDI integration and an e-commerce platform

Michael Bates Chevrolet E, Woodhaven 48183 (734) 676-9600; www.michaelbateschevy.com

Michael Bates owner

87.4 F

86.1

1.5

Automobile dealership

140

Rapid Global Business Solutions Inc. (RGBSI), Troy 48083 (248) 589-1135; www.rgbsi.com

Nanua Singh chairman and CEO

84.8

71.8

18.2

742

2,102

141

Caniff Electric Supply, Hamtramck 48212 (313) 365-8144; www.caniff.com

Douglas Bemis president

84.4

50.7

66.5

82.1

79.2

3.8

2,795

3,100

81.2

69.2

17.3

274

343

Precision machining and assembly

81.0

79.0

2.5

General contractor/construction manager

Rank

133 134 135 136

139

142 143 144

Ansara Restaurant Group Inc., Farmington Hills Victor Ansara president and CEO 48331 (248) 848-9099; www.ansararestaurantgroup.com Sharon Cannarsa Systrand Manufacturing Corp., Brownstown president and CEO Township 48183 (734) 479-8100; www.systrand.com Charles E. Gleeson II C.E. Gleeson Constructors Inc., Troy 48083 president and CEO (248) 647-5500; www.gleesonconstructors.com

Software development, IT services, staffing, engineering, quality lifecycle management, ERP, Cloud, BI/Analytics Wholesale distributor of electrical products Restaurant

145

Emagine Entertainment Inc., Troy 48084 (248) 468-2990; www.emagineentertainment.com

Paul Glantz chairman

80.0

130

1,750

Movie theaters

146

Arbor Bancorp Inc. (Bank of Ann Arbor), Ann Arbor 48104 (734) 662-1600; www.bankofannarbor.com

Timothy Marshall president and CEO

79.0

57.6

37.2

231

Bank

Harley Ellis Devereaux Corp., Southfield 48033 (248) 262-1500; www.hed.design

78.8

67.4

16.9

120

359

Full-service architecture, engineering, planning, interior design, landscape architecture, construction administration

78.0

82.7

-5.7

200

2,000

148

TTi Global Inc., Bloomfield Hills 48304 (248) 853-5550; www.tti-global.com

Michael Cooper president and managing principal Lori Blaker president and CEO

148

Kirco Manix , Troy 48084 (248) 354-5100; www.kircomanix.com

Douglas Manix president

78.0

96.0

-18.8

Design and build, construction management

Epitec Inc., Southfield 48033 (248) 353-6800; www.epitec.com

Jerome Sheppard CEO Josie Sheppard president Robert Jeannotte CEO

77.2

68.0

13.5

750

IT, engineering and professional staffing.

76.0

69.0

10.1

Automobile dealership

Raju Dandu founder and chairman Robert Minielly president and CEO

75.0

85.0

-11.8

200

800

Cloud-based connected vehicle solutions and embedded electronics

73.2

76.0

-3.7

245

258

Electrical, fire alarm, security and teledata contractor

147

150 151 152 153

Bob Jeannotte Buick GMC Inc., Plymouth 48170 (734) 453-2500; www.jeannotte.com Danlaw Inc., Novi 48375 (248) 476-5571; www.danlawinc.com Shaw Electric Co., Southfield 48033 (248) 228-2000; www.shawelectric.com

Staffing, training, consulting, outsourcing and research

B Company estimate. C Plastics News. D Acquired United Meat and Deli Inc. in March 2017. E Formerly Rodgers Chevrolet Inc. Bates purchased Rodgers Chevrolet in mid-July. F Crain's estimate. LIST RESEARCHED BY SONYA D. HILL

SEE PAGE 36

C R A I N â&#x20AC;&#x2122; S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

CRAIN'S LIST: PRIVATE 200 FROM PAGE 35 Company Address Rank Phone, website

Top executive

Ranked by 2017 revenue

Detroit Revenue Revenue area Worldwide ($000,000) ($000,000) Percent employees employees 2017 2016 change Jan. 2018 Jan. 2018 Type of business

Salvatore Cipriano Better Made Snack Foods Inc., Detroit 48213 (313) 925-4774; www.bettermadesnackfoods.com CEO Mark Winkelman president Joe Vicari Andiamo Restaurant Group, Warren 48092 CEO, president (586) 268-3200; vicarirestaurants.com

$71.0

$70.0

1.4%

231

259

Snack foods

69.5

65.0

6.9

500

1,150

Restaurants

Wade Trim, Detroit 48226 (313) 961-3650; www.wadetrim.com

Andrew McCune president and CEO

68.1

64.7

5.1

171

442

Consulting engineering and planning services

BlueWater Technologies Group Inc., Southfield 48075 (248) 356-4399; www.bluewatertech.com

Suzanne Schoeneberger president

67.6 B

76.0

-11.0

Live event and AV technology experiences

HelloWorld Inc., Southfield 48075 (248) 543-6800; www.helloworld.com

Peter DeNunzio CEO

67.0

60.0

11.7

300

363

Digital marketing company specializing in building promotional campaigns and loyalty programs, with mobile and analytics capabilities

Market Strategies International, Livonia 48152 (734) 542-7600; www.marketstrategies.com

Andrew Morrison chairman and CEO

66.0

65.4

0.9

103

770

Market research consultancy

O'Brien Construction Inc., Troy 48083 (248) 334-2470; www.obriencc.com

Timothy O'Brien president

65.2

General contractor and construction manager

161

Productions Plus - The Talent Shop, Bingham Farms 48025 (248) 644-5566; www.productions-plus.com

Margery Krevsky Dosey CEO, owner

64.5

62.0

4.0

Full service talent management agency

63.2

1.7

624

Data and application services including big data, advanced analytics, business intelligence

Buscemi Enterprises Inc., Roseville 48066 (586) 296-5560; www.originalbuscemis.com

Ravi Vallem, CEO; Sridhar Kodati, CFO; Venkat Gone, president Anthony Buscemi manager

64.3

162

Reliable Software Resources Inc., Northville 48167 (248) 504-6869; www.rsrit.com

64.0

61.0

4.9

670

Franchisor of pizza and sub party stores

Helm Inc., Plymouth 48170 (734) 468-3700; www.helm.com

Justin Gusick president & CEO

63.5

63.6

-0.2

110

Multi-channel fulfillment services including warehousing and logistics

Glassman Automotive Group Inc., Southfield 48034 (248) 354-3300; www.glassmanautogroup.com

George Glassman president

62.9

65.2

-3.5

Automobile dealerships

Kasco Inc., Royal Oak 48067 (248) 547-1210; www.kascoinc.com

Michael Engle vice president

62.2

80.6

-22.9

Construction management, design/build, construction program administration

Domestic Linen Supply and Laundry Co., Farmington Hills 48334 (248) 737-2000; www.domesticuniform.com

Bruce Colton president

60.0

59.0

1.7

115

600

Facility management and textile rental

Lowry Solutions, Brighton 48116 (810) 229-7200; www.lowrysolutions.com

Michael Lowry chairman, president and CEO

58.5

54.0

8.3

122

IT systems integrator

58.1

74.0

-21.5

280

Stamping plant, automotive welding, assembly, dies and prototypes

154 155 156 157 158 159 160

163 164 165 166 167 168 169 170 171 171 173 174 175 176 177 178

Motor City Stamping Inc., Chesterfield Township Judith Kucway CEO and CFO 48051 (586) 949-8420; www.mcstamp.com Amerilodge Group LLC, Bloomfield Hills 48302 (248) 601-2500; www.amerilodgegroup.com

Asad Malik president and CEO

57.0

49.6

14.9

479

687

Hospitality

Sur-Flo Plastics & Engineering Inc., Warren 48089 (586) 773-0400; www.sur-flo.com

Mary Graff president and CEO Kevin Stolzenfeld VP of operations Greta Elliott president Chris Kopp vice president

56.3 B

55.0 B

2.4

Injection molding, assembly

56.3

53.7

4.9

Transportation management systems, dynamic reporting, modal optimization, financial services and warehouse operations

ARC Supply Chain Solutions Inc., Taylor 48180 (877) 272-3523; www.arc-scs.com

EO Burgers, Ann Arbor 48103 (734) 678-3153; www.msventures.com

Michael Gibbons CEO

54.0

200

Restaurant

Kyyba Inc., Farmington Hills 48334 (248) 813-9665; www.kyyba.com

Thiru Ganesan president and CEO

52.7

42.6

23.7

501

Engineering and IT staffing services, application software, off-shore development and automotive electronics solutions

Orchard, Hiltz & McCliment Inc. (OHM Advisors), Livonia 48150 (888) 522-6711; www.ohm-advisors.com

John Hiltz president

51.8

46.6

11.2

211

427

A community advancement firm designing award-winning solutions from a multidisciplinary team of architects, engineers, and planners.

Bell Fork Lift Inc., Clinton Township 48035 (586) 415-5200; www.bellforklift.com

Wayne Bell president and CEO

49.0

48.0

2.1

140

Material handling

Oscar W. Larson Co., Clarkston 48348 (248) 620-0070; www.larsonco.com

Bruce Larson CEO

48.9

191

317

Fueling systems services, technical service, testing, repairs and maintenance, electrical, mechanical, installations, raze and rebuild, design and build, general contractor, HVACR

EEI Global Inc., Rochester Hills 48307 (248) 601-9900; www.eeiglobal.com

Derek Gentile president and CEO

48.0

44.5

7.9

100

Experiential marketing

B Crain's estimate. SEE PAGE 37

C R A I N â&#x20AC;&#x2122; S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

CRAIN'S LIST: PRIVATE 200 FROM PAGE 36 Rank

179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 197 197 200

Ranked by 2017 revenue

Detroit Revenue Revenue area Worldwide ($000,000) ($000,000) Percent employees employees 2017 2016 change Jan. 2018 Jan. 2018 Type of business

Company Address Phone, website

Top executive

Aztec Manufacturing Corp., Romulus 48174 (734) 942-7433; www.aztecmfgcorp.com

Francis Lopez chairman

$46.5

$39.5

17.7%

Manufacturer

American Plastic Toys Inc., Walled Lake 48390 (248) 624-4881; americanplastictoys.com

John Gessert president and CEO

46.4

42.3

9.6

200

325

Manufactures and distributes injection-molded plastic toys

PMA Consultants LLC, Detroit 48226 (313) 963-8863; www.pmaconsultants.com

Gui Ponce de Leon managing principal and CEO

46.2

43.4

6.4

245

Program, project and construction management consulting; expert witness services

PrizeLogic LLC, Southfield 48033 (248) 663-8600; www.prizelogic.com

Keith Simmons CEO

45.6

69.0

-33.9

162

Online promotion execution for Fortune 100 brands

SME (Soil and Materials Engineers Inc.), Plymouth 48170 (734) 454-9900; www.sme-usa.com

Mark Kramer president and CEO

45.3

40.2

12.7

159

280

Gonzalez Design Group, Pontiac 48340 (248) 548-6010; www.gonzalez-group.com

Gary Gonzalez CEO

43.5

63.5

-31.5

191

193

Environmental consulting including brownfield redevelopment services (acquisition of financial incentives including grants, and environmental due diligence) environmental assessments, contamination evaluation, remediation and regulatory compliance Design engineering, staffing, manufacturing technologies, production systems, other

Advance Packaging Technologies, Waterford Township 48329 (248) 674-3126; www.advancepac.com

Rob Cohen president

43.2

45.5

-5.1

Design and distribution of automotive adhesive films and industrial packaging

W3R Consulting, Southfield 48075 (248) 358-1002; www.w3r.com

Eric Hardy chairman, president and CEO

42.0

49.0

-14.3

IT staffing and consulting, including application development, business intelligence and data analytics

Tanya Bartelo Michael Bartelo owners and managing directors Jerry Chamberlain Chamberlain Marketing Group, Taylor 48180 (734) 946-8005; www.chamberlainmarketing.com CEO

41.6

41.3

0.6

6,650

40.6

38.2

6.3

118

126

Logo'd merchandise and apparel

CBI (Cyber Security Solutions), Detroit 48226 (800) 747-8585; cbisecure.com

Steve Barone president and CEO

37.1

37.8

-1.9

Cyber security solutions including advisory services, staff augmentation, training, implementation services, assessments, and managed services

Contract Direct, Southfield 48075 (248) 395-1166 ; www.contractdirect.net

Elizabeth Hammond president

36.1

38.6

-6.3

100

Facility maintenance services

Almetals Inc., Wixom 48393 (248) 348-7722; www.almetals.com

James Chain president

36.0

41.0

-12.2

Metal slitter, distributor, warehouser and processing service center

Staffworks Group, Southfield 48075 (248) 416-1090; staffworksgroup.com

L. William Brann III president and CEO Jason Brann executive vice president Greg Smith chairman and CEO Ray Fernandez B president Jeff Styers founder and CEO

35.0

58.0

-39.7

1,200

2,500

33.0

36.0

-8.3

Automotive stamping manufacturer

32.5

44.0

-26.1

Staffing firm specializing in placement of professionals in the information technology, engineering, professional, and health care services industries

John P. Darin co-chairman of the board, COO and president Larry Malace II president

31.5

31.0

1.7

150

Retail nursery, garden and Christmas center with landscaping and decorating services

30.4

34.1

-10.7

Integrated staffing company

Deborah Schneider co-founder and CEO Martin Rosenau co-founder and COO Anthony Watson president/COO

30.0

36.0

-16.7

Staffing, payroll, executive search and other HR-related services

30.0

0.0

Distributor of bulk/packaged industrial gases, welding wire, welding products and welding consultation services for North America.

Automotive Quality & Logistics Inc., Plymouth 48170 (734) 459-1670; www.aql-inc.com

Sangeeta Ahluwalia CEO

30.0

28.0

7.1

190

1,247

Staffing, warehousing, sorting and inspection, manufacturing service support

Walker-Miller Energy Services , Detroit 48202 (313) 366-8535; www.wmenergy.com

Carla Walker-Miller president and CEO

28.1

24.5

14.7

Seko Worldwide Detroit, Romulus 48174 (734) 641-2100; www.sekologistics.com/detroit

New Center Stamping Inc., Detroit 48211-2008 (313) 872-3500; www.newcenter.net

Arrow Strategies LLC, Southfield 48034 (248) 502-2500; www.arrowstrategies.com English Gardens, Dearborn Heights 48127 (313) 278-5244; www.EnglishGardens.com

Malace & Associates Inc., Troy 48098 (248) 720-2500; www.malacehr.com CrossFire Group, Auburn Hills 48326 (248) 364-0007; www.xfiregroup.com

Roy Smith Co., Detroit 48212-1597 (313) 883-6969; www.rscmain.com

Global provider of logistics services, including domestic and global air, ocean and ground transportation, freight forwarding, customs brokerage, warehousing and distribution and export crating

Staffing agency

Energy efficiency services

B It was announced in January that Fernandez would succeed Greg Smith as president. LIST RESEARCHED BY SONYA D. HILL

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

CALENDAR UPCOMING EVENTS Why Business Value Matters. 8-10:00 a.m. June 7. RAM Financial Services. Learn about business valuation methods and techniques, the benefits of knowing the value of a business and the importance of a current and accurate buy-sell agreement. $40. Skyline Club. Southfield. Contact: Marcella Evans, phone: (248) 425-4588; email: marcella@ ramfinancialservices.com; website: ramfinancialservices.com The Patient is Waiting. . . For a Dose of Disruption. 11:30 a.m.-1:30 p.m. June 7. Detroit Economic Club. Dave Ricks, chairman and CEO, Eli Lilly and Company, talks about unleashing technology and the change it causes on health care. Westin Book Cadillac. Dave Ricks

P $45 members; $55 guests of members; $75 nonmembers. Website: econclub.org Conversation with Leaders. 5:307:00 p.m. June 7. Walsh College. Alex Drost, Winston Goan and Matt Alessi from Cascade Partners discuss what it takes to be a competitive applicant for new positions, how to grow within a company, starting a career and making drastic career changes. Free. Walsh College, Troy. Contact: Heather Swarthout, phone: (248) 823-1280; email: hswartho@walshcollege.edu; website: info.walshcollege.edu/conversation-with-leaders-cascade Networking Roundtable: Connect, Network & Build. 6:30-8:30 p.m. June 12. Roundtable is designed to discuss business and business growth. Hosted by Angelita Thomas, connection coach. Free. Chase Great Enterprises, Eastpointe. Contact: Angelita Thomas, phone: (248) 631-4341; email: angelitathecoach@gmail.com; website: networkingroundtable.eventbrite. com

Who believes in Michigan?

Global Security Means Local Problems: Security, Intelligence, Space, Cyber & Politics. 11:30 a.m.-1:30 p.m. June 13. Detroit Economic Club. Former Congressman Mike Rogers discusses the rapid changes of technology, the emergence of new (and old) Mike Rogers national security problems, and how technology and security will change interactions with the world. Ford Field. $45 members; $55 guests of members; $75 nonmembers. Website: econclub.org Tech Talk and Tech Trek 2018. 9 a.m.-6 p.m. June 15. Ann Arbor Spark. Tech Talk: Speakers will each have six minutes to talk about their innovations, what they see happening in the world of tech and what they foresee for the future. Tech Trek: Technology companies will

Who wants a brighter future for our children?

open their doors to the public and showcase their latest innovations. Michigan Theater and downtown Ann Arbor. Free. Website: techtrek. annarborusa.org 2018 Women’s Business Enterprise National Council National Conference & Business Fair. June 19-21. Great Lakes Women’s Business Council. “Discover the Difference,” is an event for Michigan’s women business owners to meet with corporate purchasing representatives of national and international corporations. Cobo Center. Passes range from $200-$1,050. Contact: Robin Kinnie, phone: (734) 838-3862; email: rkinnie@ greatlakeswbc.org; website: wbenc. org Is Overtime Overtaking Your Business. 8:30-10:30 a.m. June 20. Michigan Manufacturing Technology Center. Learn how manufacturing companies can get back on track and on schedule, while still keeping up with demand in a strategic planning

Who wants to grow our business?

workshop. Free. Michigan Manufacturing Technology Center, Plymouth. Contact: Theresa Gaston, phone: (734) 451-4208; email: inquiry@ the-center.org; website: the-center. org Five Steps to Networking Mastery. 9-11:30 a.m. June 20. Oakland County Department of Economic Development & Community Affairs. Learn why networking works, how to be ready to network anywhere, which online sites are worth it, how to identify the ideal referral partners, the components of a solid ask and how to grow a business. Speaker: Terry Bean, founder, Networked Inc. and Motor City Connect. $40. Oakland County Executive Office Building Conference Center, Waterford. Phone: (248) 858-0783. Email: smallbusiness@oakgov.com; website: eventbrite.com/e/five-steps-to-networking-mastery-june-20-registration-40886205742 More Calendar items can be found at crainsdetroit.com/events.

Who wants to make more money?

J T catio al C Farm Cres

J V of Fe

J P mot pres Tech J To ing, Nor finit

To s prom crai fill o subm part

DEALS & DETAILS ACQUISITIONS & MERGERS J Detroit-based private equity firm Huron Capital Partners LLC’s Drake Automotive Group Inc., Henderson, Nev., an aftermarket car accessories and restoration parts platform, has acquired Proforged, Boulder, Colo., a designer and distributor of chassis parts. Also, Huron Capital has invested in Direct Connect Logistix Inc., Indianapolis, Ind., a transportation and logistics services company, to create a new platform in the third-party logistics industry. Websites: huroncapital.com, drakeautomotivegroup.com, proforged.com, dclogistix.com J TransForce Inc., Alexandria, Va., an employment agency to the transportation industry, has acquired Safety Serve Inc., Bloomfield Hills, a software company and a provider of online safety training courses to companies, government agencies, insurance companies and other organizations. SafetyServe will continue to operate from Bloomfield Hills. Websites: transforce.com, safetyserve.com

J Faurecia, Auburn Hills, an automotive technology company, has invested in Powersphyr, Blackhawk, Calif., provider of wireless charging solutions for the automotive, consumer and industrial markets. Websites: faurecia.com, powersphyr.com

CONTRACTS eFlex Systems, Rochester Hills, a software company, has an agreement with Atlas Copco Group, Auburn Hills, an industrial equipment supplier, to integrate Atlas Copco’s industrial fastening devices into Job Element Monitor, a digital work instruction platform that will be used on a large medical device manufacturing project. Websites: eflexsystems.com, atlascopco.com J Samaritas, Detroit, a social services agency, has been chosen as a Community Tap nonprofit partner by New Holland Brewing Company, Holland. New Holland is featuring the organization as its community partner by having servers wear Samaritas T-shirts and buttons and displaying a banner promoting the agency. Websites: samaritas.org, neJ

whollandbrew.com Ally Financial Inc., Detroit, an auto financing and banking company, has an agreement with Sonic Automotive Inc., Charlotte, N.C., a vehicle retailer, to offer Ally gap coverage and vehicle service contracts at its EchoPark Automotive used car dealerships in Colorado and Texas. Websites: ally.com, echopark.com, sonicautomotive.com J Roush CleanTech, maker of alternative fuel systems and a division of Roush Enterprises Inc., Livonia, and Blue Bird Corp., Fort Valley, Ga., a school bus manufacturer, have extended an alternative-fueled school bus partnership through 2025. The contract started in 2012 and has resulted in 1,300 districts operating more than 16,000 propane, compressed natural gas and gasoline-powered school buses. Websites: ROUSHcleantech.com, blue-bird. com, roush.com J United Wholesale Mortgage, a division of United Shore Financial Services LLC, Troy, has title sponsorship rights for the Association of Independent Mortgage Experts, Clarkston, a broker advocacy group. Websites: J

uwm.com, AIMEGroup.com J NSF International, Ann Arbor, a public health and safety organization, has been named the program manager for the Regenerative Organic Certified program, a holistic agriculture certification focused on pasture-based animal welfare, fairness for farmers and workers and requirements for soil health and land management. Websites: nsf.org, regenorganic.org

EXPANSIONS J Crunch Fitness, New York, N.Y., a fitness chain, has opened a 30,000-square foot gym at 5601 Mercury Drive, Dearborn. Phone: (313) 982-9711 Website: crunch.com/locations/dearborn J KLA Laboratories Inc., Dearborn, a telecommunications contractor, has opened a service center staffed Monday through Friday 8 a.m. to 5 p.m. Eastern time. Phone: (844) KLA-LABS; (844) 552-5227. Email: klasupport@klalabs.com. Website: klalabs.com/servicecenter.htm J SiTime Corp.. Santa Clara, Calif., provider of microelectro-mechani-

cal timing systems, has opened a Center of Excellence at 2830 Baker Road, Suite 200, Dexter. Website: sitime.com J U-Haul Co. of Michigan, a division of U-Haul International Inc., Phoenix, Ariz., has signed National Storage Centers, 35515 23 Mile Road, New Baltimore, as a U-Haul dealer to offer U-Haul trucks and moving supplies. Phone: (586) 7161149. Website: uhaul.com J Pure Barre, Birmingham, a fitness studio, has opened a location at 6923 Orchard Lake Road, West Bloomfield. Phone: (248) 562-7206. Email: westbloomfield@purebarre. com. Website: purebarre.com/miwest-bloomfield J Meritor Inc., Troy, a commercial truck supplier, has opened an Eastern Canada Regional Distribution Center in Mississauga, Ontario, its fourth North America distribution facility, to fulfill orders from warehouse distributors and dealers in seven provinces. Also, the Meritor Tire Inflation System with ThermALERT is a standard/preferred option on Vanguard dry van and CIMC reefer trailers. Website: meritor.com

J S sala cati vilio woo sala

J K Kiek man syst ing squ Cou ous ty D serv velo com

J Sk er o ene Hor and for com

facuth. one: ry@ nter.

Masand mic airs. w to hich denthe w to erry and and ding ord. mallsite: nettra-

d at

d a aker : si-

divinc., onal Mile Haul and 716-

ness n at West 206. arre. mi-

rcial asttion , its tion ares in itor TheropMC com

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

PEOPLE EDUCATION  Tim Constant to manager of education outreach, Holocaust Memorial Center Zekelman Family Campus, Farmington Hills, from principal, Crescent Academy, Southfield.

LAW ENFORCEMENT  Vince Palazzolo to police chief, city of Ferndale, from interm police chief.

MANUFACTURING Patrick Paige to CEO, HDT Automotive Solutions LLC, Detroit, from president and CEO, Acument Global Technologies Inc., Sterling Heights.  Todd Gluski to director of marketing, Ox Engineered Products LLC, Northville, from brand manager, Affinity Tool Works LLC, Troy. 

To submit news of your new hires or promotions to People, go to crainsdetroit.com/peoplesubmit and fill out the online form. Please limit submissions to management- or partner-level positions.

Techstars Mobility to move into WeWork Merchant's Row, adds corporate partners By Tyler Clifford tclifford@crain.com

Techstars Mobility is packing up to move into the heart of downtown Detroit and has picked up seven new corporate partners ahead of its next startup cohort. Need The accelerator to know program that in The startup vests in and menaccelerator is tors mobility endeparting Ford trepreneurs from Field after three around the world years will take up the seventh floor of  Program adds WeWork Merseven new chant’s Row in corporate partners June after spendfor its fourth class ing its first three  Will reveal new years at Ford cohort in coming Field. weeks “We’ve outgrown the space, surprisingly enough,” spokeswoman Rachel Fukaya said. Techstars has two full-time staffers and dozens of mentors who work with the cohorts.

WeWork Merchant’s Row offers shared workspace with common areas to tech entrepreneurs. WEWORK

“We’re going to take over an entire floor to hold the next class, which is starting in July, and we’re also using it for open community, networking and meeting space for entrepreneurs,” Fukaya said. “PlanetM is in the building. What we’re trying to do is build up this large mobility community that merges at WeWork. We want to leverage that

building as a mobility epicenter.” WeWork, the New York-based shared workspaces company that serves technology startups and entrepreneurs, handled the design and build-out for the new office. Two of the meeting rooms will be outfitted with advanced collaboration technologies from Los Angeles-based Oblong Industries Inc.

If you want a stronger future for Michigan,

Who wants more job opportunities?

If you want Michigan’s economy to grow and thrive, we need to compete with other states and win. We need to create an environment that attracts new business, and talent that has the education and training to do the jobs of tomorrow.

Techstars declined to disclose the terms of the lease. With Dearborn-based Ford Motor Co. and Germany-based Robert Bosch GmbH returning, Techstars added the following new corporate partners:  Walnut Creek, Calif.-based CSAA Insurance Group, a AAA insurer  Honda Motor Co. Ltd.  Columbus, Ohio-based Nationwide Mutual Insurance Co.  Detroit-based PlanetM  Germany-based Siemens AG  San Antonio-based United Services Automobile Association  Volvo Car Group The companies will mentor and support entrepreneurs selected for Techstars’ fourth class, which will begin in July and end with a demo day in October. The 11 startups, to be revealed in coming weeks, will work out of the new space that is double the size of the facility that Techstars is departing in Ford Field. Techstars has invested in 33 startups from six countries who have raised $45 million.

raise your hand.

A plan has been developed to accomplish these goals: the Plan for a Stronger Michigan. Raise your hand to support the Plan at StrongerMichigan.com.

An Initiative of Business Leaders for Michigan.

 Salads UP, Ann Arbor, fast-casual salad restaurants, opened a third location in the Briarwood Dining Pavilion, Briarwood Mall, 100 Briarwood Circle, Ann Arbor. Website: saladsup.com

MOVES  Kiekert USA Inc., a division of Kiekert AG, Heiligenhaus, Germany, manufacturer of automotive locking systems, is moving its manufacturing operations to a new 41,000 square-foot facility at 50695 Varsity Court, Wixom. The company’s previous production facility 46930 Liberty Drive, Wixom, will continue to serve as Kiekert’s research-and-development center. Website: kiekert. com

NEW PRODUCTS  SkySpecs Inc., Ann Arbor, provider of robotics solutions for the wind energy industry, has introduced Horizon, a wind turbine analytics and management software designed for wind farms. Website: skyspecs. com

 Gravity Software LLC, Detroit, an accounting software company, has released a subscription billing module, which automates recurring and contract invoicing, and Gravity Software for Technology Companies, an accounting system for technology companies. Website: go-gravity.com  BullsEye Telecom Inc., Southfield, a communications solutions provider, has launched a key system for VoIP phones, which allows users to park and pick up calls between a shared set of lines. Website: bullseyetelecom.com  InfuSystem Holdings Inc., Madison Heights, provider of infusion pumps and related services for the health care industry, has launched InfuSystem Mobile, an infusion patient safety app for smartphones and tablets. Website: infusystem.com/ mobile  Validu, Washington Township, a software company, has released meeting-compliance software to combat fraud and inaccuracies with expense reporting. Website: validu. net  Michigan-based Westborn Markets and Birmingham Chocolate, Bir-

mingham, have launched Eat Good Chocolates, a line of bars and treats. The offerings include Pistachio Cherry, Blueberry Nibs, Salted Toasted Coconut, Three Berry Blend, Westborn Jamaican Blue Coffee, Westborn Tater Chips and 80 percent Cacao Extreme Dark Chocolate. Website: westbornmarket.com.  Denso Corp., Southfield, an automotive supplier, has released a retrofittable driver status monitor to help reduce the number of traffic accidents involving commercial vehicles, such as trucks and buses. The product checks for distractions, drowsiness, sleep and inappropriate posture based on the driver’s facial image, which is captured through a camera installed in the cabin. Website: denso.com  Plex Systems Inc., Troy, a software company, has released Plex Mobile, a mobile app for manufacturing professionals, enabling a manufacturer’s workforce to handle shop floor and administrative responsibilities and access and share information from mobile devices. Website: plex.com  Living Essentials LLC, Novi, the distributor of 5-hour Energy shots,

has released 5-hour Tea shots, available in peach tea flavor. Website: 5hourenergy.com

NEW SERVICES  The Detroit Metro Convention & Visitors Bureau, Detroit, nonprofit marketer of metro Detroit, has debuted a YouTube series “Eats in The D,” a five minute show that focuses on the food, drinks and people in metro Detroit. Website: visitdetroit. com/eats-in-the-d  Henry Ford Hospital, Detroit, has implemented a new robotic imaging technology for brain and spinal surgeries, called Modus V. Developed by medical group Synaptive Medical Inc., Toronto, it is a robotic arm developed from technology previously used on the International Space Station to position astronauts, repair satellites, and move cargo. Website: HenryFord.com  Munetrix, Auburn Hills, a software provider for states, local governments and public school districts, has released the Munetrix Educator Evaluator tool to simplify customer compliance with Michigan Public

Act 173, which governs educator evaluations for teachers and administrators in the state of Michigan. Website: munetrix.com  Health Alliance Plan, Detroit, a nonprofit health insurance company, has launched the Wellness at Your Side app, to give users access to HAP’s digital wellness manager, iStrive, from any digital device. Also, HAP has a partnership with the Michigan Fitness Foundation Challenge, a Pure Michigan Fitness program. As the 2018 sponsor, HAP is providing giveaways such as T-shirts, hats, backpacks and fleece jackets to all participants who complete the program by the end of the year. Websites: michiganfitness.org, hap.org

STARTUPS  The Green Market Store, Detroit, an online health goods store, has opened offering health and wellness products including food, supplements and household products. Website: greenmarketstore.com

Submit Deals & Details items to cdbdepartments@crain.com

SPONSORED CONTENT

Host Larry Burns, President and CEO, Children’s Hospital of Michigan Foundation About this report: On his monthly radio program, Children’s Hospital of Michigan Foundation President and CEO Larry Burns talks to community, government and business leaders about issues related to children’s health and wellness in Michigan. The hourlong show typically airs at 7 p.m. the fourth Tuesday of each month on WJR 760AM. Here’s a summary of the show that aired May 22; listen to the entire episode, and archived episodes, at chmfoundation.org/caringforkids.

CARING FOR KIDS

Austin Catholic principal, pediatric surgeon, Red Wings executive support children’s initiatives Janel Coppens is Principal and Head of School at Austin Catholic High School. Bill Harrington is President of Genesus Marketing and Communications and a board of directors member for Austin Catholic High School. Larry Burns: Janel, please share with our listeners your cool title, “Head of School.” Janel Coppens: Head of School encompasses not only principal but what a lot of private schools have as the president model—in charge of fundraising and the marketing and the overall business aspect of the school. Burns: Talk a little bit about the reconstruction of Austin Catholic High School today versus its former identity as Austin Catholic Prep, which closed in 1978. How did this all come about? Coppens: The project started about 20 years ago when the building boom was happening in Macomb and there were a lot of Catholics moving out to that area. There was a need for a Catholic high school in northern Macomb County. We are making great strides with the school and our great relationship with the Austin Catholic Prep alumni. While we are not the same school — we are co-ed, we are not in Detroit, we have a different nickname — our values are so similar and so is our focus on the students in terms of the discipline and focus on community. Burns: Bill Harrington, Austin Catholic Prep class of 1963, tell us how you are connecting the Austin Friars with the Crusaders. Bill Harrington: One of my classmates called me and asked me to get involved. Austin had been closed 40 years. I got involved in starting what was Austin Catholic Academy at that point, which we changed to Austin Catholic High School. My role is to engage the alumni, to get them involved. The alumni

SPONSORED BY:

CaringForKidsMAY.indd 1

never thought it was going to come back. Burns: Are you successful? Harrington: Yes, we’ve had a campaign and we have 22 classes that went to Austin and now we have class captains starting to communicate about what we are doing out at Austin and bringing them back to the school and showing them what the school looks like. Burns: How many students do you have? Coppens: We have 84 this year; this is our fourth graduating class so there are 22 in that graduating class, a mixture of male and female. Of our 32 graduates, 100 percent have gone on to college.

Dr. Justin Klein, MD, is Director of the Burn Center at Children’s Hospital of Michigan.

Kevin Brown is Director of Detroit Red Wings community relations and the Detroit Red Wings Foundation.

Larry Burns: On this show we talk about children and the wellbeing of kids and we want to educate our listeners about your role. Dr. Justin Klein: Being a pediatric surgeon, we take care of only children. There are six of us in our group and we are all board-certified in general surgery and we have done the fellowship training specifically for taking care of children. We do the abdominal surgeries kids need and the lumps and bumps surgeries that kids need. Part of what we do as pediatric surgeons also includes the trauma care as well as the burn care. We are a verified pediatric burn center and we do have the pediatric surgeons as the primary people taking care of the injured burn children. Burns: Is that somewhat rare or different than other children’s hospitals? Klein: It is different. There’s a handful throughout the country that do have the pediatric surgeons that do take care of the burn children but for the most part across the country it is mostly the adult burn surgeons or the adult plastic surgeons taking care of the children. Burns: It’s different operating on a little person, particularly a newborn, than an adult. What are the challenges with the size of an individual? Klein: The extra training we do to be pediatric surgeons fine-tunes your skills and really teaches you how to operate on those tiny infants. We get good at honing our skills but part of being at a dedicated children’s hospital is really the ancillary support staff we have, particularly in the operating room where we have dedicated pediatric anesthesiologists, child life support staff, the nurses from the pre-op recovery and

Larry Burns: Tell our listeners about your career path and how you ended up with the Detroit Red Wings. Kevin Brown: I started my career through professional sports in 2006 in Tampa Bay with the Buccaneers. The NFL was my first calling, and I worked my way up through the corporate ladder there and helped manage their community outreach and foundation efforts and really helped to grow their support of the community there in Tampa Bay. Nine years later a call came from the Red Wings to explore an opportunity in Detroit and it just made so much sense to come up to a city like Detroit that is experiencing such a wonderful rebirth. The llitch family being so much a part of that has been phenomenal. Burns: The last time I saw you we were together for the ribbon cutting of “Al,” the great playscape at Children’s Hospital of Michigan. Can you tell our listeners about that? Brown: There is a fantastic relationship between the Detroit Red Wings and Children’s Hospital of Michigan to help kids in Michigan thrive. A couple of weeks ago we were able to take something that was a simple imagination of what could be and turn it into reality, with the Red Wings Play Zone out at the Children’s Hospital of Michigan. What it has become is staggering—an 8-foot-tall Al the Octopus, that is completely interactive for kids of any ability. It’s 1,700 square feet of play. The playground has really helped usher these kids through what is otherwise a tough time in their lives. We’re able to give back to the community and allow a kid to just be a kid for a few moments or allow a family

the ICU care that is available to us. It is invaluable. Burns: I’d love to hear of when your interest started to develop to be a physician and then, specifically, to deal with these youngsters that are so severely burned. Klein: When I went into the medical field, the driving force was my father had a heart attack at a pretty young age and needed surgery, a coronary bypass. I got exposure to the pediatric surgery world during my general surgery training as we rotate through the Children’s Hospital of Michigan, and I saw firsthand what the pediatric surgeons do and what it all entails, and that was my changing moment. Burns: What makes Children’s Hospital of Michigan so special is their physicians’ interest in research. Klein: My research interest started when I spent a couple of years in Boston at the children’s hospital there during my general surgery training. I saw the need and the effect of coming out with new technologies or establishing patterns of care. We work on a lot of injury prevention as well as understanding the disease process to define the care that we are giving.

to just spend some time together when all they are thinking about is health. Burns: So, tell the readers about our partnership between the Red Wings Foundation and the Wish Club. Your fans play a big part in making what we do possible. Brown: The Wish Club is the initiative you see on the screen when someone wants to announce that they are getting married or that they are just at the arena. Our fans provide a small donation to have their name or their message on the screen. All of those dollars are going back into the community to help kids. Burns: Tell readers what the Red Wings Foundation does for the community, not just during the hockey season, but year-round. Brown: Sometimes this industry gets caught up in wins and losses and the reality is that Hockeytown is so much bigger than the game. It’s about impacting communities through the power of hockey. It’s about celebrating unity on and off the ice. It’s about celebrating our neighbors in times of need. Our fans are some of the best in sports. They just get it.

5/23/18 9:47 AM

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

Program targets abuse of special-needs children By Sherri Welch swelch@crain.com

The Autism Alliance of Michigan is launching a new program to educate people who interact with special-needs children on recognizing signs of abuse in people who sometimes aren’t able to tell anyone it’s happening. It plans to take the program to everyone from caregivers and teachers to first responders and child protective services and criminal justice professionals. The program is among the first of its kind in the Tammy Morris: country. Abuse is For parents of nightmare for autistic children, parents. abuse is their biggest nightmare, said Tammy Morris, chief program officer for the Bingham Farms-based alliance. “They have to put their children on a bus and send them away for eight hours, and they can’t hear about their day,” since many children on the spectrum struggle to communicate verbally or are unable to tell a parent about their day because of physical, intellectual or communication barriers, she said. National statistics support those parents’ biggest fears. According to the 2012 National

Need to know

JJAutism Alliance of Michigan launching

program to educate people who interact with special-needs children on issues that could lead to exploitation, early signs of abuse JJThree-year program will develop training, surveys to gauge impact and take to hundreds of professionals who interact with special needs children JJSupported by $1 million gift from Karen

Colina Wilson Smithbauer, former educator, CEO of Central Distributors of Beer

Survey of Abuse of People With Disabilities conducted by the Disability and Abuse Project of Spectrum Institute: J 70 percent of people with disabilities reported being victims of abuse in their lifetime. J 63 percent of parents reported that their child or family member had been abused. J 90 percent of victims reported being abused over multiple occasions; 57 percent reported that they had been abused more than 20 times. J 40 percent of victims of physical abuse and 41 percent of victims of sexual abuse reported that they did not report their abuse. The study included reports for both adults and children, Morris said. It’s just a glimpse of the abuse happening, she said, since some people

with special needs such as those in institutional care are unable to report the abuse themselves and/or do not have caregivers who can report on their behalf. The issue came to light locally in recent years with reports of repeated bullying, sexual abuse and harassment of a 13-year-old autistic boy at Novi Middle School by another student during the 2013-14 school year. A December 2014 lawsuit alleging that Novi Community School District employees failed to properly train employees in identifying sexual abuse and failed to act on reports of the abuse against the boy was settled out of court in February. With a $1 million gift from Karen Colina Wilson Smithbauer, former CEO of Romulus-based Central Distributors of Beer, the Autism Alliance is launching AWARE: Alliance Working on Abuse Responsive Education program. Prevention is the first goal, Morris said, and education on the issues autistic children face and how they can be exploited helps prevent abuse. The alliance is also looking to give care providers tools they can use to recognize abuse early on. It’s creating a task force to develop training materials for abuse prevention and recognition — such as the presence of bilateral bruising on a limb where it wouldn’t happen from typical play — and surveys to monitor its impact. The alliance will then take that in-

“This is a group of people who have not had a voice. We need to give a voice to them, and I think this (program) can do it.” Karen Colina Wilson Smithbauer

formation to hundreds of first responders, educators, therapists and mental health employees, child protective services and foster care workers, criminal justice system professionals and all 45 domestic abuse shelters across the state. It will build on awareness training for first responders launched by the alliance in 2011 to ensure they recognized people with special needs. “I really feel it’s our responsibility when unspeakable acts are happening to those who can’t speak for themselves, we need to do something about it,” Smithbauer, 73, said. “This is a group of people who have not had a voice. We need to give a voice to them, and I think this (program) can do it.” Smithbauer was a teacher for 10 years before she joined the Anheuser-Busch beer distributorship her grandfather had started. She worked at the company for 26 years, serving as CEO for 13 years, up until the company’s sale in 2007. She launched the Karen Colina

Wilson Foundation in 2006 to support the health, welfare and safety of women and children. Among other gifts, Smithbauer provided just under $1 million to First Step, which provides services for victims of domestic and sexual violence in Wayne County. She has also donated $7.5 million to Oakwood Healthcare Beaumont and made gifts to other organizations including Cleveland Clinic, Michigan State University, Starfish Family Services and The Guidance Center. The new program her gift is funding at the Autism Alliance of Michigan is among the first of its type in the country, according to the National Autism Association. Statistics show a huge number of autistic children and adults will be abused at some point in their lives, so the new program in Michigan will be important, said Wendy Fournier, president of the Portsmouth, R.I.based association. “You have to be able to recognize signs of abuse in someone who is unable to verbally communicate, and that can be really challenging.” But all behavior is a form of communication, said Fournier, who has an 18-year-old daughter with autism. Even nonverbal children are always saying something, she said. “It’s a matter of: Are we listening, are we hearing them?” Sherri Welch: 313 (446-1694) Twitter: @SherriWelch

C R A I N ’S D E T RO I T M E M B E RS H I P

ACCESS INSIGHTS EXPERIENCES For more than 30 years, Crain’s has been your trusted source of business news. And while we continue to value your readership and dedication to journalism, it’s time for us to deepen our relationship. As a Member you can choose the benefits that are just right for you, including: DIRECT ACCESS TO CRAIN'S NEWSROOM REPORTERS, EDITORS & PUBLISHER

UNLIMITED ACCESS TO CRAIN'S DETROIT BUSINESS PRINT + DIGITAL CONTENT EXCLUSIVE ACCESS TO NEW INSIDER NEWSLETTERS DISCOUNTS TO CRAIN’S DETROIT BUSINESS EVENTS FULL ACCESS TO CRAIN’S LISTS AND DATA DISCOUNTS ON OTHER CRAIN PUBLICATIONS INCLUDING AUTOMOTIVE NEWS, AD AGE AND CITY NEWS IN CLEVELAND, CHICAGO AND NEW YORK EXCLUSIVE ACCESS TO MEMBERS-ONLY VIP EVENTS JUST TO NAME A FEW!

Learn more by visiting crainsdetroit.com/Membership.

C R A I N â&#x20AC;&#x2122; S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

Support Small Business:

MACKINAC ISLAND

Pure

MACKINAC

All

NATURAL

Hand

CRAFTED

Fresh

FOR YOU

ORI G I NAL MURDI C KSFUDG E.COM

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

Support Small Business:

MACKINAC ISLAND

GROCERY • DELI & PRODUCE • BAKERY BREAD FRESH COFFEE • FRESH MEATS • PANINIS & SUBS SPECIALY SANDWICHES • GOURMET PIZZA MICHIGAN WINES • CRAFT BEERS • LIQUOR

AMERICA’S OLDEST GROCERY STORE

Home • Lifestyle • Michigan Beer & Wine • Gifts

We are a full-service grocery store that also carries a wide range of premade foods, carryout items, beer, wine, and liquor. Let Doud’s fill your pantry or help your build the perfect picnic lunch for an afternoon in Marquette Park, overlooking Arch Rock, or one of the many scenic spots on Mackinac.

TWO LOCATIONS

ON MACKINAC ISLAND

A unique collection in the middle of Michigan’s crown jewel, celebrating Mackinac Island and The Great Lakes State. Find the perfect gift for someone special or a souvenirfor you to remember your trip to Mackinac. Centrally located on Main Street, at the Lilac Tree Hotel.

Mackinac Island, Michigan • 906.847.9980 littleluxuriesofmackinac.com

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

Support Small Business:

MACKINAC ISLAND

Indoor & Outdoor Seating • Breathtaking Waterfront View Breakfast 8-10 a.m. • Dinner 6-9:30 p.m. Pianist in Lounge Bar 5-9:30 p.m.

Celebrating Over 135 Years of Hospitality

Stop in at Murray Hotel Fudge Co. for the Mackinac Island, MI’s creamiest fudge. Over 35 unique ﬂavors to try (free samples)!

Mention Crain’s for $3 off* per pound! Amigo Burrito offers a variety of casual mexican. Come try our daily $9.95 burrito special. Mama LaRosa’s Pizza Parlor for quick grab and go pizza and salad. Slices for $2.99 or whole pizzas starting at $9.99. Our pizza buffet has 6 different pizza types, breadsticks, over 35 item salad bar, soft serve and cinnamon sticks. All for just $10.95! *Availiable May 28 - June 1, 2018

Photo by: Jimmy Taylor, jimmytaylor.myportfolio.com

Located Inside Island House Hotel 6966 Main Street • Mackinac Island

906.847.3347 • 1852GrillRoom.com Dinner Reservations Suggested

MACKINAC ISLAND’S BEST KEPT SECRET Mackinac Island

E DINING ID S R E T A W R O O D T OU

Off Main Street Behind Mary’s Bistro Draught House

7463 MAIN STREET MIBAYSIDEBBQ.COM

FOLLOW THE PATH TO THE LEFT OF ISLAND HOUSE HOTEL 6966 MAIN STREET

ICEHOUSEMACKINAC.COM

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

Support Small Business:

•

Lunch •Dinner

inac Isla ck

MACKINAC ISLAND BEERS ON TAP 50 CRAFT

Wood Grilled Specialties Live Music e

Spitfire Rotisseri

History, Convenience, Comfort

Breathtaking Views • Timeless Charm • Ideal Location Indoor Pool • Onsite Dining 800.626.6304 • theIslandHouse.com

’s Mackinac IslandERS N BEST RUM RUN 7463 Main Street MackinacMarys.com

Pine Cottage Bed & Breakfast Enjoy a Treasured Hideaway on Mackinac

Serving Classic American Meals Since 1963 Breakfast Served All Day Milkshakes • Sandwiches • Ice Cream 7245 Main Street • 7AM - 6PM

906.847.3820 • PineCottageMackinac.com

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

Support Small Business:

MACKINAC ISLAND Mackinac Island

Mackinac Island

Bet On a Good Time!

es h !

Fa m

w n ed • A lw a ys F O il y

Fudge • Caramel Corn • Toffee • Taffy • Brittle

Deliciously Creative Menu Best Specialty Cocktails

Ryba.com • #RybasFudge 7245 • 7340 • 7463 Main Street

This is Mackinac.

7337 Main Street SeabiscuitCafe.com

MISSION POINT mackinac island

The Perfect Choice for Corporate Events, Meetings and Groups Mackinac Island’s only dedicated conference center. Newly renovated Main Lodge rooms. The island’s largest and newest spa & salon. Delicious food. Onsite activities and amenities. One Lakeshore Drive, Mackinac Island, MI 49757 www.missionpoint.com | 906.430.4561 8 PICK 201

Open 9:00 a.m. - 5:00 p.m. Daily www.mackinacparks.com

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

Support Small Business:

MACKINAC ISLAND

Dine at the Yankee Rebel Tavern

Located Downtown on Astor Street in Mackinac’s Historic District

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

Support Small Business: 2018-BSI-FiveCrainsAds.qxp_Layout 1 2/28/18 7:21 AM Page 1

Historic Mackinac Island, Michigan

MACKINAC ISLAND 2018-BSI-FiveCrainsAds.qxp_Layout 1 2/28/18 7:21 AM Page 2

Booth Seating

HDTV Sports

Spread out and relax in style at Mackinac Island’s newest hotel!

This summer, visit Bicycle Street Inn & Suites and Waterfront Collection. Our ideal Main Street location gives you prime access to quaint shops, restaurants, and our most popular island attractions. Relax in comfort and style in any of our 56 spacious and beautifully decorated guest rooms and suites, many featuring private walk-out balconies with panoramic views overlooking the historic downtown and waterfront.

Our newly expanded Lobby features a skylit Atrium and Mezzanine Level with seven luxurious guest rooms.

Rooms include premium pillow top beds, A/C, mini-kitchen, 43” HDTV, and walk-in glass showers. Suites feature a separate living room with sleeper/sofa and two HDTVs. All guests receive ferry ride discounts, complimentary continental breakfast, and access to our fitness room, business room, laundry, and bike storage.

12 Hottest Tap Handles on Mackinac!

Shareables Shareables Burgers Burgers & & Wraps Wraps Flatbreads Flatbreads Steaks Steaks & & Ribs Ribs

Salads Chicken Wings Kids Menu Fresh Seafood

Breakfast, Lunch and Dinner Main St at Bicycle Street Inn & Suites Enjoy a gorgeous view of the harbor and downtown from a Deluxe Water View Balcony Suite.

TOLL FREE (855) 560 -8005 bicyclestreetinn.com 2018-BSI-FiveCrainsAds.qxp_Layout 1 2/28/18 7:21 AM Page 5

Single and Multi-Speed Comfort and Hybrid Bikes Multi-Speed Tandems and Adult Tricycles Tagalongs, Weehoos and Burley Trailers Kids Mountain Bikes and Single Speed Bikes Special Needs Carts and Strollers

THE WATERFRONT COLLECTION Mackinac Island’s Newest Hotel Thirteen Luxurious Guest Rooms Walk-out Balconies with Harbor Views Granite Vanities and Glass Showers Fridge, Micro, Coffee-maker 43” Flat Panel HDTV

195

$ /up

Main Street Room

270/up

Waterfront Balcony

7:30 am - 10:00 pm / Bar: 11:00 am - 2:00 am winchestersmackinac.com (906) 847-0290 2018-BSI-FiveCrainsAds.qxp_Layout 1 2/28/18 7:21 AM Page 3

FREE HELMET,

WATER & BASKET! (With every rental)

All guests receive a free continental breakfast, ferry ride discounts, free luggage handling, and access to our fitness room, business workstation, bike storage, and self-serve laundry.

Mackinac Cycle, LLC 7271 Main Street Mackinac Island, Michigan 49757

(906) 847-0047 Mackinac Cycle is conveniently located at Arnold Dock on Main Street, across from the Mackinac Island Visitors Center.

Call

(855) 560 - 8005

Visit bicyclestreetinn.com

mackinaccycle.com bikes@mackinaccycle.com Hours: Daily 8:00 AM to 8:00 PM

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

Support Small Business: 2018-BSI-FiveCrainsAds.qxp_Layout 1 2/28/18 7:21 AM Page 4

MACKINAC ISLAND

America’s Favorite Candy Store is Here!

Custom Designed by Candy Craftsmen Enjoy our Unique Chocolates, Candies, Delicious Fudge, and Amy’s Famous Chocolate High Heel Shoes Two Locations to Serve You Corner of Main and Astor On Main inside Bicycle Street Inn

MACKINAC ISLAND 2018LVH-Crains.qxp_Layout 1 3/23/18 7:52 AM Page 1

Family Vacation Value Package $466/up* for Family of Four!

This summer, enjoy a fun-filled vacation at the beautiful Lake View Hotel on historic Mackinac Island. Several added-value packages are available throughout the season, including our Family Vacation Value Package for families of four or five persons, featuring these great amenities: ☛ ☛ ☛ ☛

Two Nights Deluxe Accommodations Round Trip Ferry Tickets w/Shepler’s Two Mornings Continental Breakfast $100 Goodfellow's Restaurant Card

Open Late Night

Mention this ad for your discount.

Preferred Guest Value Card Indoor Heated Pool, Spa, Sauna Free Baggage Handling/Transfer All Taxes, Fees, and Service Charges

Call Today (800) 207-7075

sanderscandyonmackinac.com (906) 847-0250

15% OFF FUDGE, ICE CREAM & POPCORN

☛ ☛ ☛ ☛

Where great vacations begin! FREE WIFI

Visit lake-view-hotel.com * $466 Midweek package is available for two adults/two children on select dates in

the spring and fall. Weekend and full season rates are higher. Restrictions apply. See website for complete rates and dates for different times of travel.

Accommodations • BBQ Lunch Event & Conference Space

6860 Main Street (906) 847-0101 • harbourviewinn.com

www.theinnatstonecliffe.com - (906) 847-3355

SPONSORED CONTENT

Your next business partner? In a shifting world, collaboration with Italy offers Midwestern opportunities in robotics, advanced manufacturing, software Story by Marcia Lerner for Crain Content Studio As new technologies develop and processes shift, companies, institutions and people are forging links across international borders that are resulting in unexpected innovations. Connections between the U.S. and Italy in particular offer opportunities, stemming in part from Italy’s remarkable position in the feverishly transforming fields of advanced manufacturing, robotics and software. “Italy is really strong in system and mechanical engineering, thanks to its outstanding engineering promise and capabilities,” said Rob Dolci, president of aizoOn, an Italian software and technology company. Italian companies and universities have: ■ Pioneered collaborative robotics, allowing people to work safely alongside robots; ■ Developed local support to aid partners in other countries working with their advanced manufacturing systems; and ■ Fashioned “digital twins,” enabling low-cost simulations of production and other processes. Here’s a closer look at what connections between the U.S. and Italy are yielding.

Benefits of collaboration Much of the seeds of innovation are planted at universities, and Italy’s polytechnic institutions have thrown themselves into the process. “We are talking about two industrial countries with a manufacturing vocation,” said Luca Settineri, professor in the department of Management and Production Engineering at the Politecnico di Torino. Dr. Settineri added that with the excel-

SPONSORED BY:

ItalianTradeAgency.indd All Pages

Innovation Days Detroit When: June 26, 2018 Where: DC3S Center for Collaboration and Synergy, Sterling Heights Register for free: id.ice.it Tentative panel discussion topics: ■ Advanced Manufacturing and Automotive: Past Trends, Future Prospects and Government Policies ■ Industry 4.0 is now: Advanced Manufacturing and Robotics at work ■ Automotive Manufacturing and new technologies: Trends and Challenges ■ Invest in Italy: Updates on reforms and opportunities ■ Small and Medium Enterprises, innovation and the Automotive Supply Chain ■ Research Centers and Academic Institutions Building More Innovative Public-Private Partnerships Note: If you are interested in reserving time for one-on-one, business-to-business meetings in Detroit (June 26) or Rockford, IL (June 29), please register by June 18.

lence of the scientific schools in Italy and the American tradition of entrepreneurship and startups, both countries could benefit from even greater sharing. Indeed, there is much for them to connect on. Paolo Rocco, professor of Automatic Control and Robotics at the Politecnico di Milano, is involved in what he calls col-

laborative robotics. “Collaborative robotics means that a human and a robot are working side by side,” Dr. Rocco said. “We are using artificial intelligence to have the robot understand what the human is doing, so that they can work together fluently and safely, in a more productive way.” These innovations are designed to be shared. “We’re a global society, we can’t deny that anymore,” said Jeffrey Ahrstrom, president and chief operating officer of BLM Group USA, a subsidiary of BLM Group, a manufacturing company that combines Italian innovation with American distribution and global support and presence. BLM designs and manufactures machinery to make tubes and products from tubes as well as flat lasers and cold saws. “We are the Maserati and the Ferrari of the machine tool industry,” Ahrstrom noted. He attributes the quality of the product to the company’s focus on excellence, aesthetics, research and day-today support for its customers, all of which he sees as deeply connected to its Italian roots. BLM operates from its U.S. base in Novi, Mich. and its Italian products are accompanied by a commitment to work with American manufacturers, creating and supporting these products, many of which are destined for American companies.

From collaboration to innovation Italy and U.S. design and innovation also come together within the auto industry with Lamborghini Automotive’s new car concept, the Terzo Millennio. Designed with the labs of MIT, the car is Lamborghini’s attempt to envision a new way of cars in the world. “This is an exceptionally exciting project, with the opportunity for our Centro Stile and R&D departments to

co de

rn re

t n n

, a t d s s

l e h

h -

d o

companies innovative development and automotive work with MIT to do what Lamborghini has always been very good at: rewriting the rules on super sports cars,” Stefano Domenicali, Automobili Lamborghini chairman and CEO, said in a statement. Grappling with the need to support other companies in other countries can spur all kinds of innovation. For Gianluca Di Stefano, partner of Reply, an Italian artificial intelligence and machine learning company, braiding together the disparate strands of its global network has helped the company create solutions for others in the same position. “Since we are often involved in software projects aimed to design global functions, we learned a lot how, for example, things go differently in the manufacturing rather than in logistics and supply chain,” Di Stefano said. “Thus we became experts in understanding how to design solutions that fit both sides and produce strong value and efficiency for those global processes.” Rob Dolci, of aizoOn, also uses his company’s understanding of the challenges of manufacturing and production in a global environment to help others tackle these issues. With MIT, Purdue University and University of Massachusetts at Lowell, aizoOn is working on the development of the “digital twin.” “With artificial intelligence and machine learning we create a digital version of real processes and real products,” Dolci said, noting that with digital twins his company can run different scenarios using real data in a simulation of a machine or process, whether it’s test-driving a digital twin car or running a digital twin of a brewing process.

These simulations allow him to help distant companies improve their products and their processes without wasting important resources. “Being a global partner is not just a matter of technologies,” Dolci noted, “but also, and sometimes most important, processes and synchronized services.”

Innovation opportunity Ongoing and potential collaborations between Italy and the United States are the inspiration for an upcoming conference sponsored by the Italian Trade Agency: Innovation Days 2018. Visionaries and leaders like these, along with other leaders from universities and companies in Italy and throughout the United States, are coming together to explore how to work together and what they have to offer each other. The all-day conference is planned for June 26 at DC3S Center for Collaboration and Synergy in Sterling Heights, Mich.. The conference agenda includes time for prearranged, one-on-one business-to-business meetings. A session of meetings will also be offered in Rockford, Illinois on June 29. “It’s a rare opportunity to explore a country and its technological environment and to learn more about the Italian way to advanced manufacturing and automotive” said Marco Saladini, of the Italian Trade Agency, which is hosting the conference. “This is an unusual business development event with a plus, and the plus is research and knowledge:, actual researchers and engineers will all be there.” Learn more at id.ice.it

ITALY’S ECONOMY BY THE NUMBERS

Turin Additive Laboratory hosts delegation of U.S. academic and government representatives 2017 over previous year Macroeconomic indicators for Italy ■ GDP, real +1.5% ■ Fixed investments, gross +3.8% ■ Consumers’ expenditure +1.4% ■ Exports of goods and services +5.4% ■ Imports of goods and services +5.3% ■ Inflation 1%

Source: Bank of Italy

BLM Group Laser Tube Cutting Machinery USA-Italy trade in major sectors Imports from Italy ■ Machinery, 11.2 Usd bn, +10.8% ■ Fashion, 7.8 Usd bn, +5.3% ■ Automotive, 7.5 Usd bn, +12.7% Exports to Italy ■ Chemicals and pharmaceuticals, 4.6 Usd bn, -9.0% ■ Machinery, 3.2 Usd bn, +16.8% ■ Intermediate goods and components, 3.1 Usd bn, +54.8%

Sources: U.S. Dept. of Commerce and Italian Trade Agency (ITA)

Collaborative robotics research at the Politecnico di Milano

5/24/18 4:10 PM

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

Mexicantown avenue to be remade as shared street

“The great thing about southwest (Detroit is) ... it’s probably one of our most walkable pedestrian neighborhoods.”

By Annalise Frank afrank@crain.com

A commercial-heavy Mexicantown avenue will be remade into a shared street and millions will be poured into Clark Park improvements under a plan for Detroit’s West Vernor corridor. After the city’s recent expansion of its Strategic Need Ne ig hb o rh o o d to know Fund invest City of Detroit ments in areas laid out three-year outside downplan to transform town, it has laid southwest's West out a vision for Vernor corridor the southwest  $2.4 million Detroit corridor that planning dislated for rector Maurice improvements to Cox said comClark Park plements its ex Part of wide isting walkability efforts to and diversity. strengthen The city planwalkability, ning department infrastructure in revealed the neighborhoods neighborhood framework at a community meeting Tuesday night, city spokesman Tim Carroll said. A highlight of the three-year strategy is revamping two restaurant-lined Bagley Avenue blocks in Mexicantown as Detroit's first shared street, Cox said. The blocks run between the Fisher Service Drive and 24th Street. The concept is a flat street without raised sidewalks that’s more flexible for festivals and markets, with foli-

Maurice Cox

CITY OF DETROIT’S WEST VERNOR CORRIDOR NEIGHBORHOOD FRAMEWORK PLAN

Construction is expected to start in 2019 to turn a section of Bagley Avenue in Mexicantown (above) into a shared street, or a level boulevard without raised sidewalks that’s more appropriate for festivals and pedestrian-friendly events. At right, a rendering of planned improvements at Clark Park. Work will start this summer with light installation. A splash pad fountain and zocalo, or traditional Mexican public plaza, are to follow.

Intellectual Property Experience

In Your Corner.

Matthew W. Bower

mwbower@varnumlaw.com

Charles F. Gray

Erin Klug

cfgray@varnumlaw.com

Varnum’s IP experience includes: ■ Patentability, state-of-the-art, infringement and validity opinions ■ U.S. and foreign patent protection ■ Trademark registration, clearance and licensing ■ Intellectual property contract drafting and negotiation

emklug@varnumlaw.com

■ ■ ■ ■ ■

Timothy K. Kroninger

Richard P. Manczak

tkkroninger@varnumlaw.com rpmanczak@varnumlaw.com

State and federal court litigation

■

Proprietary rights and employment agreements Joint venture agreements Computer hardware and software agreements

■

Technology transfers

■ ■

Protection of trade secrets, know-how, software and confidential business information High-tech patent protection Intellectual property auditing and portfolio management Copyright protection

Contact our Intellectual Property Team for your legal needs at www.varnumlaw.com.

Legal Experience In Your Corner.® ■

Ann Arbor

■

Detroit

■

Grand Haven

■

Grand Rapids

■

Hastings

■

Kalamazoo

■

Lansing

■

Novi

age and overhead “artistic” lighting, according to the framework plan. It'll still be accessible to vehicles at most times. Construction is expected to start in 2019, after the city reaches out for community input on design in the next several weeks, said lead city planner Karen Gage. The Bagley redesign and Vernor Highway streetscape improvements will cost a total of $5.4 million. Around $2.4 million in improvements will aim to make southwest's already popular Clark Park a “visible, noticeable public space” and a “front door” for the community, Cox said. Work will start this summer with light installation. A splash pad fountain and zocalo, or traditional Mexican public plaza, are to follow, the framework plan said. “The great thing about southwest (Detroit is) ... it's probably one of our most walkable pedestrian neighborhoods,” Cox said. The new framework “is really about refining it, trying to be culturally specific about strategies you produce there, and kind of amplifying what’s already there.” Other main elements of the West Vernor framework include:  Efforts to cluster retail in walkable commercial districts and cluster residential density along those areas through investment and housing policies  Emphasizing importance of grocery and drug stores, and of diversifying food and beverage options  Pedestrian- and cyclist-focused improvements to major roadways  Proposed renovation of empty mixed-use structures and multi-family housing  A long-term vision for reducing the need for driving and for expanding shared-use parking options As part of wide efforts to strengthen walkability, safety and infrastructure outside downtown, Detroit announced in early May it would expand its Strategic Neighborhood Fund to target a total of 10 areas in the city, touching more than 60 individual neighborhoods. Work on the Livernois-McNichols corridor is fully underway, including construction of Ella Fitzgerald Park, Cox said. The Islandview/ Greater Villages area on the east side is moving from planning to implementation, and Northwest/Grand River is set to do the same next. The city is beginning planning efforts with communities in Russell Woods/ Nardin Park, Jefferson Chalmers and Campau/Banglatown. Other planning processes will start later this year. Generally, planning takes 9-12 months per corridor and implementation is expected to take three or four years. Projected investment in the neighborhoods will reach $422 million over the next five years — counting expected private investments, it could reach over $1 billion.

Reach Southeast Michigan’s most influential audience

ALL YEAR-LONG!

2019

CRAIN’S BOOK OF LISTS The Book of Lists is an annual data resource which culminates Crain’s year-round efforts to gather business intelligence and data in Southeast Michigan. With the most up to date and accurate information on companies that span across a number of industries, the Book of Lists is a staple resource all year-long. Publish Date: 12/24 | Close Date: 11/30

14 in

Refer to the Book of Lists at least once a month

12 in

Readers consider the Book of Lists a must-read

Source: Signet Readership Study

Learn about our unique advertising opportunities by contacting Lisa Rudy at lrudy@crain.com.

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

FOCUS

BUSINESS EDUCATION

John Kennedy, a representative with InvestWise Financial, presents at a White Glove Workshop. WHITE GLOVE WORKSHOPS

Specializing in seminars

White Glove Workshops finds niche planning events for financial advisers By Doug Henze

Teaching tips

Dean Thurman remembers the nagging uncertainty that came with using seminar marketing to build a client base for his financial adviser business. After he made a cash outlay to invite potential clients to informative talks about Social Security filing or estate planning, bad weather or simply a change of plans could turn them away. “We call it pay and pray, where you pay $5,000 (in printing and postage) for a snail-mail invitation, and you hope someone shows up for the seminar,” said Thurman, who has operated Bloomfield Hills-based InvestWise Financial for 25 years, with cousin Mike Thurman. To reduce the risk and lighten the workload for financial advisers, the partners launched White Glove Workshops in 2015. The Birmingham company books a venue for a client’s seminar, pays for insurance and provides presentation materials. Then, White Glove does all the marketing, using digital invitations. “Our service basically lets financial planners be financial planners, instead of event planners,” Thurman said. And White Glove offers a guarantee, of sorts. While the typical seminar, which lasts about 90 minutes, will bring out 30 people, White Glove charges presenters only for the ones that turn out, he said. “You pay us for people who attend the class,” Thurman said. “If people don’t show up, that’s on us.” That came into play last year, when major hurricanes in Florida and Texas forced presenters to cancel 40 programs, Thurman said. White Glove’s model has brought the company rapid growth. The company, started with three employees, now has 94. Revenue rose from $3.2 million in

White Glove Workshops, which provides materials to financial advisers for educational seminars on topics ranging from filing for Social Security to first-time home buying, offers the following tips to presenters:

Special to Crain’s Detroit Business

 Give audience members the respect they deserve: Show up on time for the presentation and be courteous to attendees;  Know the material and present it in a compelling way. Providing valuable information increases the likelihood an audience member may approach you to form a business relationship; and

Dean Thurman and his cousin Mike Thurman.

 Don’t try to turn the seminar into a sales pitch. To avoid turning off guests, use the presentation to educate them on making important life decisions, rather than to talk about your business.

WHITE GLOVE WORKSHOPS

Kelly Boyd, an investment adviser, presenting at a White Glove Workshop.

2016 to $11.1 million in 2017, Thurman said. He expects it to hit $20 million this year. “We do about 400 to 500 seminars a month,” Thurman said. “We do seminars around the country.” Known as “5-6-7” seminars, they’re named for the 567 ways someone can collect Social Security, Thurman said. The complexity of the system was an inspiration for Thurman to become a financial adviser, he said. The financial advisers who are White Glove’s clients present the material independently. But they have to follow White Glove guidelines to stay in the network.

White Glove has booted advisers — called “hosts” when giving seminars — who couldn’t follow the rules, Thurman said. A golden one is to keep the presentation on an educational level. Thurman says free-steak-dinner marketing come-ons, followed by sales pitches at seminars are a turn-off for attendees. “These are really big decisions they make, and they don’t really want to be sold something at a seminar,” he said. “They want to gain the knowledge. These seminars are to talk about the basics of investing and some of the people who attend the

class become clients.” Hosts can mention their day jobs and make themselves available after the presentation, but they can’t make their business part of the program. Many of White Glove’s other rules for hosts are common sense: Show up on time, don’t be rude to attendees, know the material. Since White Glove doesn’t staff the seminars, it relies on surveys and complaints from guests to police the programs. “Our attendees are our eyes and ears,” Thurman said. “Very little goes wrong.” To verify that attendance wasn’t undercounted, White Glove uses check-in apps and reaches out to noshows who registered, also asking if they’d like to come to a different seminar. As a nod to McDonald’s Hamburger University, White Glove holds Host University twice a year — once in Bir-

mingham and once in Florida. Training seminars given there reinforce the White Glove way. Because financial advisers started White Glove, the company originally limited presentations to financial topics. But its catalog — there are now eight titles, including Social Security, retirement planning, first-time home buying, estate planning, college planning and others — is expanding. “We’re going to double that over the next year,” Thurman said. To do that, White Glove is reaching into other arenas. There’s already a seminar given by doctors who do joint replacements, and programs given by attorneys and real estate professionals are on the horizon. For some seminars, presentation material is free to hosts in White Glove’s network. In other cases, hosts must purchase the presentation from content providers with which White Glove partners. While White Glove isn’t alone in promoting seminar marketing events, Thurman said he’s unaware of any competitors doing it the same way. “There are copycats that pop up, but nobody that does all the event planning and marketing and (has the) guarantee,” he said. Mike Cajthaml, vice president of Overland Park, Kan.,-based Cy Financial, said White Glove has boosted his retirement planning business, while reducing administrative time, since he began using the company in 2017. Instead of the eight to 10 potential clients who showed up when Cajthaml used dinners to bring them in, 20 to 25 attend each daytime seminar and many become customers. “The people who come to these events are very interested in the information … rather than just showing up for a free meal,” he said. “(And) there’s nothing I have to do other than show up for the seminar and present.”

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

Millennials skeptical of business, feel unprepared By Dustin Walsh dwalsh@crain.com

After several recent high-profile corporate scandals, millennials are more skeptical of businesses operating ethically, according to Deloitte’s seventh annual millennial survey. Reaching its lowest level in four years, only 48 percent of millennials believe businesses behave ethically, compared to 65 percent in the 2017 global survey. The same goes for corporate commitment to improving society — 53 percent of the respondents believe they are not committed, versus 38 percent last year. “The results of this year’s survey indicate that the rapid social, technological and geopolitical changes of the past year have had an impact on millennials’ and Gen Z’s views of business, and it should be a wakeup call to leaders everywhere,” Punit

Need to know

Deloitte survey finds millennials’ confidence in business takes a sharp turn J

J Corporate scandals impacting millennial confidence, loyalty J Young workers feel employers aren’t preparing them for technological change

Renjen, Deloitte Global CEO, said in a news release. “These cohorts feel business leaders have placed too high a premium on their companies’ agendas without considering their contributions to society at large. Businesses need to identify ways in which they can positively impact the communities they work in and focus on issues like diversity, inclusion and flexibility if they want to earn the trust and loyalty of Millennial and Gen Z workers.”

Some major corporate scandals have run rampant on social media and the news in recent years including the May 2017 raid of Allegan-based pharmaceutical company Perrigo Co. by the Federal Bureau of Investigation for its alleged role in price-fixing generic drugs. The survey indicates the lack of corporate trust is translating to even further erosion of loyalty by young workers. According to the survey, only 28 percent of millennial workers envision staying at their current employer for more than five years, down from 35 percent in 2017. Adding to the despondency of youth is a lack of trust in political leaders and fear over the ramifications of rapid technological advancement. Of the 10,455 millennials across 36 countries surveyed, only 19 percent

believe politicians have a positive impact. Plus, fewer than 40 percent of millennials surveyed think they have the skills necessary to succeed in the era of Industry 4.0, an era that sees business integrate the Internet of Things, cloud computing and cognitive computing to boost productivity. And just 36 percent of millennials said their employers were preparing them for the upcoming workforce changes. “The fluctuating loyalty levels showcase a unique opportunity for businesses to double-down on attracting and retaining talent,” Michele Parmelee, Deloitte’s global talent leader, said in the release. “Businesses need to listen to what millennials are telling us and reimagine how business approaches talent management in Industry 4.0, placing a renewed focus on learning

Millennials and business Topic

% in 2018

Millennials who believe businesses behave ethically 48 Milliennials who believe business leaders are committed to helping improve society

% in 2017

Source Deloitte survey

and development to help all people grow in their careers throughout their lifetimes.”

Downtown Detroit Markets summer program kicks off

By Kurt Nagl knagl@crain.com

The Downtown Detroit Markets program opened Thursday with 30 local vendors, food trucks and a beer garden, with a farmers market and chef incubator on the way. Portable fans have replaced heaters in the little glass huts that debuted downtown last winter as part of an activation by businessman Dan Gilbert’s Bedrock and Quicken Loans Community Investment Fund. Retail, food and drink vendors are spread throughout Cadillac Square, Capitol Park and 1441

Need to know

JJFarmers market planned in Capitol Park

every Tuesday

JJChef incubator being finalized JJBeer garden opens Friday in Cadillac Square

Woodward — the temporary site of a fashion collective. Josh York, owner of clothing retailer York Project, had just finished setting up inside his Cadillac Square hut late Wednesday morning. He works out of the Ponyride space in Corktown and aspires to build a brand. “It’s always been a dream of mine to have a spot downtown, and now I do,” he said. Allison Hylant, also a Ponyride

KURT NAGL/CRAIN’S DETROIT BUSINESS

A chef incubator and farmers market are also planned for Capitol Park as part of the Downtown Detroit Markets program this summer.

tenant, has a space in Capitol Park, where she is selling home goods that she dyes herself. She hopes to open a brick-and-mortar location in the city for her online business called dale & blue. The markets program is giving her a place to introduce herself and her goods to the community. “I saw the winter markets and came down here and shopped them and said, ‘Wow, I didn’t know this was a thing,’” she said. In addition to the vendors, there will be a beer garden in Cadillac Square, opening Friday and operated by Central Kitchen + Bar with beer from Atwater Brewery and Great Lakes Brewing Co., said Francesca George, director of tenant relations and experience for Bedrock. Central Kitchen hired six new employees to staff the garden, which will have six different beers on tap for around $7 per pint. A farmers market will start at Capitol Park in mid-June and run noon-4 p.m. Tuesdays through the summer. Market participants are still being determined, Bedrock spokeswoman Sam West said. A chef incubator — attracting local and out-of-state chefs for collaborative cooking — will also be set up in Capitol Park, pending city approval, George said. Bedrock will operate the incubator in partnership with Detroit-based Heirloom Hospitality Group LLC.

$213M mixed-use development planned for Ann Arbor By Kurt Nagl knagl@crain.com

A $213 million mixed-use development is planned for 6.4 acres of vacant land adjacent to downtown Ann Arbor. The three-building project at 1140 Broadway St. includes a 384,401-square-foot building with 530 residential rental units; a 123,725-square-foot condominium complex with 86 for-sale units; 4,600 square feet of retail space spread across three buildings; and two parking decks totaling 181,979 square feet and 536 parking spots. The project will take place in three phases. Phase one is construction of the rental unit and begins in July, phase two is the condos and begins spring 2019 and phase three is the retail building starting spring 2020.

MORNINGSIDE LOWER TOWN LLC

Morningside Lower Town LLC is planning a $213 million mixed-use development adjacent to downtown Ann Arbor.

Completion of the project in its entirety is expected by the end of 2021, said Ron Mucha, principal of Morningside Lower Town LLC, the Chicago-based developer leading the project.

Rental pricing has not been finalized, said Alison Solway, spokeswoman for Morningside. One-bedroom condos start at $456,900; two-bedrooms at $579,900; and three-bedrooms at $819,900.

Fifteen for-sale units are to be reserved for live/work housing, and 15 rental units are reserved for renters earning 60 percent of the area median income. Morningside is investing $42.3 million, or 20 percent equity, according to the Michigan Economic Development Corp. The project is expected to create 25 full-time jobs at an average hourly wage of $17. It will also benefit the city in the form of investment in a roundabout, bus shelters and other pedestrian safety enhancements, according to the MEDC. The Michigan Strategic Fund on Tuesday approved a $5.2 million local and school tax capture to support the brownfield development project. Site preparation includes excavation and removal of historic

Need to know

JJ530 residential rental units and 86 for-sale units planned JJ4,600 square feet of retail planned across three buildings JJMEDC approves $5.2 million in brownfield tax capture incentives

fill. There will also be a 1 million-gallon concrete storm detention system installed. Morningside has not received prior incentives from the state, according to the MEDC. Morningside said that without the brownfield tax capture, the project would not be viable. Illinois-based HKM Architects & Planners is the architect and the general contractor is to be determined.

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

GST AutoLeather emerges from bankruptcy By Dustin Walsh dwalsh@crain.com

Car seat leather supplier GST AutoLeather Inc. emerged from Chapter 11 bankruptcy last week under new private equity ownership and leadership. The Southfield-based supplier is majority-owned by Greenwich, Conn.-based Black Diamond Capital Management LLC. Black Diamond hired Randy Johnson, former president and CEO of Romeo-based composites supplier Romeo RIM Inc., to lead the GST as its president and CEO. Before Romeo RIM, Johnson served as vice president of global operations for GST

Need to know

JJSouthfield-based supplier now

majority held by Conn.-based private equity firm JJRandy Johnson, former VP of competitor Eagle Ottawa, is new CEO JJGST AutoLeather entered bankruptcy in 2017, saddled with $196 million in debt

competitor Eagle Ottawa before it was acquired by Lear Corp. in 2015. Johnson replaces Dennis Hiller in the role. Hiller will remain a board adviser for an unspecified period. The company also hired Bryn Kahl, former vice president of operations for German pneumatic components supplier

Aventics, as its vice president of global operations and Scott Landis, former president of NorthSand HR Group LLC, as its chief human resources officer. GST AuRandy Johnson: toLeather enHired to lead GST as president, CEO. tered bankruptcy on Oct. 4, saddled with $196 million in debt despite revenue of $540 million in 2016, according to its filing in U.S. District Court in Delaware. At the time, the supplier blamed the rise of

ride-sharing and reduced auto production for its decline. But GST suffered more practical business setbacks at its foreign operations — the company employs 5,600 in the U.S., Mexico, Japan, China, Korea, Germany, Hungary, South Africa and Argentina. GST said in its bankruptcy filing that between April 2016 and July 2017 about 20 percent of its supplied content to an automaker in Europe was rejected due to one of its suppliers’ violation of the automaker’s validation process. The problem cost GST about $8 million, it said in the bankruptcy filing. GST generated $142 million in rev-

enue in Europe in 2016. A leather tannery in China also began demanding above-contract pricing in late 2015, costing GST an additional $24 million to move capacity elsewhere, the filing said. Before bankruptcy, GST was owned by Tokyo-based private equity firm Advantage Partners LLP, which acquired the supplier for $310 million from Citibank Venture Capital and its affiliate SILLC Holdings in 2008. Advantage entered into an agreement to sell GST to private equity firms MBK Partners of Hong Kong and Simone FC Co Ltd. of South Korea in 2015 for $400 million, but the deal never materialized.

Majestic Theatre to close cafe, expand with renovation By Kurt Nagl knagl@crain.com

Majestic Theatre in Midtown Detroit is undergoing a $1 million renovation to increase capacity and overhaul the concert area as its owner angles to ramp up special events business at the historic venue. A new marquee sign, street box office, 50-foot lobby bar, stage flooring, ceiling and acoustic improvements are planned for the 4140 Woodward Ave. concert hall, owner Dave Zainea said.

Need to know

JJExpanded lobby to take place of Majestic Cafe JJNew marquee sign, street box office, lobby, floor, ceiling and improved sound system JJVenue signs new booking deal with AEG Presents

Capacity will be bumped from 1,000 to 1,268 in a new design that will do away with the Majestic Cafe, which has fronted the complex for nearly 30 years. Zainea said he wants out of the full-time restaurant business to shift focus to special events such as weddings, birthdays and bar mitzvahs. “No more cafe,” he said. “I just don’t want to be in the restaurant business at this point. It’s a stressful business.” He said the complex will continue selling food and catering.

The Majestic Theatre in Midtown Detroit is undergoing a $1 million renovation to be complete by next summer.

The Majestic’s other businesses — Sgt. Pepperoni’s Pizzeria and Deli, The Garden Bowl, The Magic Stick and The Alley Deck — will remain open throughout renovations. Zainea said most of the work, which began last month, will be complete in six months and the full renovation — ceiling and all — will be done by this

time next year. Investing now made sense to Zainea for two reasons: first, the “synergy” taking place in Midtown is good for business and, second, the venue has a new source of income after signing a new booking deal with AEG Presents, the live entertainment division of Los Angeles-based AEG.

Majestic had been working with the company for the past three years but just recently turned over all booking operations to the company. Zainea is handling contracting for the renovations through his company HZ Construction. The architect is Detroit-based Archive Design Studio and Detroit-based Patrick Thompson

GOOGLE

Design is also on the project. Zainea’s family has owned the entertainment complex since 1946. The Majestic has been around since the 1970s and as a music venue since 1987. The Fillmore Detroit is also set for renovations and scheduled to close in a couple of weeks for five months.

Ascension funds projects in Tawas City, Saginaw, Standish By Jay Greene jgreene@crain.com

Ascension Health plans to invest $50 million in three of its health systems in Michigan after previously considering selling them. The systems receiving the investment from the nation’s largest nonprofit health system are St. Mary’s of Michigan in Saginaw, St. Mary’s of Michigan in Standish, and St. Joseph Health System in Tawas City, the company said last week. “During our discernment we reviewed options including partnering with other organizations in the operation of the three health systems as well as transitioning them to different systems,” Patricia Maryland, Ascension's executive vice president and president and CEO of Ascension Healthcare, said in a statement.

Need to know

JJ$50 million in funding for projects at St. Mary’s in Saginaw, St. Mary’s in Standish and St. Joseph Health System in Tawas City JJAscension had considered selling the three hospital systems. JJAscension has been undergoing massive strategic rethinking as it contemplates future with less inpatient and more outpatient reimbursement

“I’m excited to share that as part of our renewed commitment we are planning an infusion of $50 million in capital spending and resources to ensure these hospitals and related services are equipped to meet the evolving needs of those we are privileged to serve.” Joseph Cacchione, M.D.

“However, we determined that retaining and investing in these health systems will best serve them, their associates and physicians, the communities they serve, and our integrated national health ministry." Maryland was CEO of St. John Providence Health System in Warren

before going to the St. Louis corporate office in 2013. Ascension has 15 hospitals in Michigan. In a statement, Joseph Cacchione, M.D., Ascension Michigan's interim ministry market executive and president of Ascension Medical Group,

said he was part of the sale analysis process. Cacchione replaced Gwen MacKenzie last month. “I’m excited to share that as part of our renewed commitment we are planning an infusion of $50 million in capital spending and resources to

ensure these hospitals and related services are equipped to meet the evolving needs of those we are privileged to serve,” Cacchione said. “We also have begun planning for the transition to the unified Ascension identity for both St. Mary’s of Michigan communities and St. Joseph in Tawas as part of our national branding work," he said. Ascension Michigan operates 15 hospitals and hundreds of related health care facilities with about 26,000 employees. Earlier this year, Ascension Michigan laid off more than 500 employees and reorganized many departments in an effort to reduce costs, improve efficiencies and develop new strategies to prepare for a transition to more outpatient care services.

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8 The report by Clean Fuels Michigan says that 29,000 jobs in the state are directly tied to clean-fuel vehicles. GETTY IMAGES/ISTOCKPHOTO

Report: Clean fuels promote jobs, good health By Jay Greene jgreene@crain.com

Jobs, taxes paid, a cleaner environment and improved public health are several of the benefits to Michigan from the expanding number of clean-fuel vehicles, according to a new report sponsored by Clean Fuels Michigan, a Lansing-based group of 30 companies associated with the energy, automotive and environmental markets. The 35-page report prepared by Lansing-based Public Sector Consultants says Michigan's 29,000 jobs directly tied to clean-fuel vehicles could grow substantially in the next decade as the number of those vehicles increases. The report estimates the number of indirect jobs supported by the clean-fuel industry now number 69,000. Clean-fuel veJeff Guilfoyle: hicles include Studies: Less electric and hypollution brid vehicles, as improves health. well as those powered by propane, natural gas and hydrogen fuel cells. The clean-fuel vehicles sector contributes $18.8 billion to Michigan’s economy each year and generates over $700 million in state and local taxes when direct, indirect and induced effects are included, the report says. A focus for the group is for Michigan to benefit from expected rapid growth in clean-fuels vehicles. “We want that growth rate to be here. There is an opportunity and a threat,” said Jeff Guilfoyle, vice president and lead author of the report with Public Sector Consultants. Mike Alaimo, executive director of Clean Fuels Michigan, said lawmakers in the Michigan Legislature and regulators at the state Public Service Commission are “doing great work to lay a foundation for the state for the onslaught of clean mobility.” But Alaimo said more work needs to be done to develop the infrastructure for clean vehicles over the next several years and to educate the public on the benefits of clean vehicles. The report also concluded that reducing air pollution will improve Michiganders’ health and cut drastically public and private health expenditures. Air pollution can exacerbate health problems, triggering asthma attacks and worsening cardiovascular disease, cancer and diabetes. For example, a recently American Lung Association study found that having the majority of a state’s vehicle fleet be emissions-free by 2050 could reduce vehicle-related air pollution health costs by 88 percent. The improvement in air quality Michigan would likely see from a transition to clean-fuel vehicles would lead to Medicaid cost savings, the report said. “There have been large studies” that

Need to know

 Report by Clean Fuels Michigan projects growth in jobs and public health benefits by an expansion of clean-fuel vehicles  Clean vehicles include plug-in electric vehicles and those powered by propane, natural gas, hydrogen fuel cells and hybrid fuels  The clean mobility sector contributes $18.8 billion to Michigan’s economy each year

prove public health can be improved with less air and water pollution, said Guilfoyle. “I don’t know if they (policymakers) are there yet (on connecting clean energy to health benefits). They are probably unaware now.” Guilfoyle said the economic benefits to clean fuels are what gets the most attention, but the health and environmental benefits are just as important. “I have not seen a ton of issues where the impetus was supporting legislation to connect environment to health,” Alaimo said. “We are hoping this is the issue. There is a strong economic rationale. We know policymakers also care about health care costs like they do roads.” Michigan is a leader in the clean-fuels field, Guilfoyle said. From 2011 to 2016, the state had more than 3,000 clean technology patents. The report found that Michigan also leads research on a per-capita basis, submitting 32 patents per 100,000 residents, more than double the next highest state. In Michigan, 82 percent of registered vehicles are gasoline-powered and 6 percent are diesel-powered. An additional 11 percent are flexible fuel vehicles, which can run on a combination of gasoline and ethanol. Vince Carioti, director of E-Mobility North America for Phoenix Contact, a German maker of vehicle electrical components that recently opened an office in Michigan, said that by 2040 some 35 percent of new vehicles purchased globally will be electric-powered. In Michigan, 124,000 vehicles are electric or hybrid vehicles, according to the Michigan Department of Transportation. Greentech Media Research projects 11.4 million electric vehicles on the road in the U.S. in 2025. “Access to vehicle charging is important. We need more,” Carioti said. Rob Bacyinski, program manager of natural gas vehicle business development for DTE Energy Co. and board chair of Clean Fuels Michigan, said utilities will play a major role in the mobile clean fuels market in the coming years. “DTE Energy is working to ensure plug-in electric and natural gas vehicles are integrated in a manner that ensures safe and reliable operation of the grid,” Bacyinski said in a statement. “We believe that clean fuels and electric vehicles will bring added benefits to not only the energy grid, but customers and the public at large.”

WHERE WILL YOUR

TRUE NORTH LEAD YOU?

Northwood prepares future leaders through business-focused bachelor’s and master’s degree programs. Real-world scenarios and hands-on experiences position students for dynamic networking opportunities and successful careers. Where will your TRUE NORTH lead you? Start by visiting northwood.edu/truenorth.

northwood.edu • 800.622.9000

C R A I N â&#x20AC;&#x2122; S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

CRAIN'S LIST: GRAD BIZ DEGREE PROGRAMS Degrees offered

Listed alphabetically

Michigan campus locations

Types of programs

Berrien Springs

Cost per credit hour as of May 2018

Minimum GPA

Minimum GMAT/GRE

On campus, online

Varies

Part time, full time

2.8

450

2.5

3 years FT work

$695

Varies

$575 resident; $850 nonresident

2.5

$920

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

MBA; M.A., Ed.S, Ed.D, Ph.D. in leadership, educational leadership and higher education administration; M.S. community and international development

Aquinas College 1700 Fulton St. E., Grand Rapids 49506-1801 (616) 632-2924

Master of management with concentrations in organizational leadership, Grand Rapids marketing management and sustainable business

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

MBA, M.S. in information systems, M.S. educational effectiveness, M.S. in Allen Park, Auburn Hills, Online, full time, and nursing, doctor of business administration Clinton Twp., Port Huron, part time others

Central Michigan University 1200 S. Franklin, Mount Pleasant (and other locations) 48859 (989) 774-4000

M.S. in administration, information systems/SAP, logistics; M.A. in economics and in sports administration; master and doctor of health administration; others

Clinton Township, FT, PT, evenings, weekends, in person, Dearborn, Detroit, Southfield, Troy, Warren, hybrid, online others

Cleary University 3750 Cleary Drive, Howell 48843 (517) 338-3332

MBA in health care leadership; analytics, technology, innovation; global leadership

Howell, Ann Arbor, Detroit, Flint

Online, blended

Concordia University - Ann Arbor 4090 Geddes Road, Ann Arbor 48105 (734) 995-7300

MBA, with concentrations in communication, finance, health care, HR, international biz, others. M.S. in organizational leadership and administration; master's in ed. leadership, curriculum, instruction

Ann Arbor

Full time, part time, evenings and online

Varies

$579-699

Lansing, Kalamazoo, Grand Rapids

Full time, evenings, online

2.7

$515-565

Detroit, Warren, Grand In-seat and online, Rapids, Lansing, Midland, full- or part-time, Holland, and more. days and evenings.

2.75

$792/credit hour

Cornerstone University, Professional and MBA; MBA concentrations in health care administration, global business, project management, finance; M.S. in management Graduate Studies 1001 E. Beltline Ave. NE, Grand Rapids 49525 (616) 222-1448 Executive MBA, master of accountancy, others; MBA with optional Davenport University graduate certificates in accounting, finance, health care management, 27650 Dequindre Road, Warren 48092 others (800) 686-1600

$1,073 (Masters) and $1,248 (Doctoral and EdS) NA

Eastern Michigan University Gary Owen Building, Suite 306, Ypsilanti 48197 (734) 487-4444

General MBA or MBA with 13 specialization options; M.S. in accounting, Ypsilanti. MBA and FT, PT, evenings. For 2.75 (3.0 450 (500 for HR and organizational development, information systems, integrated MSHROD courses also in MBA and MSHROD, for MSA, MSA or MST; marketing communications, taxation; 14 graduate certificates Livonia some Saturdays, MSF, 550 for MSF) online B MST)

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

MBA, M.S in information security and intelligence

Ann Arbor, Auburn Hills, Online, weekends, Clinton Township, Harper campus Woods, Warren, others

3.00

Grand Valley State University Seidman College of Business 50 Front St., Grand Rapids 49504 (616) 331-7400

MBA, M.S. in taxation; M.S. in accounting

Grand Rapids

Part time, full time

3.0

500 D

$686

Kettering University 1700 University Ave., Flint 48504 (800) 955-4464

MBA with concentrations in leadership, IT, supply chain, and technology Flint management; engineering concentrations in manufacturing, mechanical design, power electronics and machine drives. Additional M.S. offerings.

Online, full-time

3.0

$912

Lawrence Technological University 21000 W. 10 Mile Road, Southfield 48075-1058 (248) 204-2210

MBA, M.S. in information technology, dual degrees: MBA/M.S. in information technology, MBA/master of engineering management, MBA/master of architecture

3.0

3.0 or better

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

MBA, 9 certificate options; MSBA in leadership studies, leadership studies Livonia, Gaylord, in criminal justice and MS in health services administration Macomb

Part time, evenings, weekends and online

3.0

Ranges, depending on program, from $865 to $1,150 $835 E

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

M.A. in human resources management, educational leadership

Detroit, online

Part time, full time, online

3.0

$616-$767 F

Michigan State University Broad College of Business 632 Bogue St. N520, East Lansing 48824 (517) 355-8377

MBAs: full-time and executive. M.S. in accounting; analytics; finance; hospitality business; management, strategy and leadership; marketing research; supply chain management. Ph.Ds in accounting, business information systems, finance, logistics, management, marketing, others

Detroit, East Lansing, Troy

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

Varies

Michigan Technological University School of Business and Economics 1400 Townsend Drive, Houghton 49931-1295 (906) 487-3055

MBA, accounting and applied natural resource economics

Houghton

Campus, full time, part time

2.9

550/NR

$950

Southfield, Warren, Full time, part time Chrysler Technical Center and online

$723

500/upper $564 (per 50th percentile credit hour for graduate programs) C

Information for this list was provided by the schools through surveys or their websites. It is not a complete listing, but the most comprehensive available. NA = not available. NR = not required.

B MS in Finance will admit its first cohort in September 2019 and will have a different tuition structure. C Rate is for the 2017-18 academic year. Board of trustees will not vote on the tuition rates for the 2018-19 academic year until May. D Waiver possible based on academic and work experience. E 2018/2019 tuition. F 2018-19. LIST RESEARCHED BY SONYA D. HILL

SEE NEXT PAGE

C R A I N â&#x20AC;&#x2122; S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

CRAIN'S LIST: GRAD BIZ DEGREE PROGRAMS

Listed alphabetically

FROM PREVIOUS PAGE

Northern Michigan University 1401 Presque Isle Ave., Marquette 49855-5301 (906) 227-2900

Minimum GPA

Minimum GMAT/GRE

Cost per credit hour as of May 2018

Full time, part time, campus

3.0

500/NR

$647

Troy, Grand Rapids, East Lansing, Midland, online

FT, accelerated, PT, evenings, online and executive

3.0

$787 per credit hour

Rochester Hills

Part time or full time, evenings, some Saturday, online. Executive MBA Friday evenings and Saturday on alternating weekends. Online

3.0

GMAT 500/ V 153 Q 144

3.0

500

$760

3.0

450

3.0

$564.20 in state; $1,074.20 nonresident Varies by program

3.0

$690 B

3.0

Can be waived with experience.

$1,579

Varies

Degrees offered

Michigan campus locations

Types of programs

MBA

Marquette

MBA and M.S. in organizational leadership; M.S. in accounting, applied Northwood University Richard DeVos economics, finance and taxation Graduate School of Management 4000 Whiting Drive, Midland 48640 (800) 622-9000http://www.northwood.edu/ academics/graduate MBA, executive MBA in health care management, information systems Oakland University School of Business leadership, M.S. in IT management, accounting; post-master certificates Administration in accounting, business economics, entrepreneurship, finance, others; 238 Elliott Hall, Rochester Hills 48309 and general management geared to non-business master's applicants (248) 370-3287

Olivet College 320 S. Main St., Olivet 49076 (269) 749-7626

MBA in insurance

Olivet

Saginaw Valley State University 7400 Bay Road, 160 Wicks, Saginaw 48710 (989) 964-6096www.svsu.edu/ graduateprograms

MBA

Saginaw

Siena Heights University 26999 Central Park Blvd., Suite 100, Southfield 48075 (248) 799-5490

M.A. in leadership in organization, health care and higher education; Master of Business Administration (MBA)

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

MBA with concentrations in healthcare administration, human resource development, management, organizational consulting and strategic leadership

Southfield, Jackson, Online Monroe, Adrian, Battle Creek, Benton Harbor, Lansing, Dearborn, Kalamazoo Spring Arbor, Flint, Grand Full time, online, Rapids, Jackson, Lansing, hybrid metro Detroit, others

University of Detroit Mercy 4001 W. McNichols, Detroit 48221 (313) 993-1200

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

UM Ross School of Business C 701 Tappan St., Ann Arbor 48109 (734) 615-5002

Full-time MBA, part-time MBA, Bachelor of Business Administration, global MBA, executive MBA, master's in management, supply chain management, accounting; executive education, PhD.

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

MBA in accounting, finance, HR management, international business, Dearborn investment, management information systems, others. M.S. in accounting, business analytics, finance, information systems, others. Dual degrees in MBA/M.S.-finance, MBA/health services

Full time, part time, Competitive Competitive evenings and online with with applicant applicant pool pool

UM-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, health care management, international business, other; M.S. in accounting; grad certificate in business

Part time, evening, Net+ weekend

Ann Arbor

Flint

Online, hybrid, part time, evenings

Part time, full-time, and evenings; business turnaround management certificate available online. Full time, part time, and executive

$883/ credit

3.0

450/150

MBA concentrations in accounting, management, finance, human capital, Southfield and downtown online University of Phoenix Detroit D 26261 Evergreen Road, Suite 135, Southfield marketing, project management, manufacturing 48076 (248) 675-3704

2.5

$698

MBA; MBA/JD dual; master's in management and manufacturing, University of Windsor Odette School of logistics, supply chain and HR management Business 401 Sunset Ave., Windsor, Ontario N9B 3P4 (519) 253-3000

Windsor

Full time

2.75

550

Varies

Troy; Novi; at Macomb and St. Clair County CCs

Full time, part time, evenings, and online

2.750

$770 per credit hour

Full time, part time, evenings, weekends and online

2.75

Evening courses (full or part-time), online

2.5

Walsh College 3838 Livernois Road, Troy 48083 (248) 823-1600

MBA, M.S. in accountancy, finance, IT, IT leadership, management, marketing and taxation. Dual degrees: MBA/M.S. finance, IT leadership, management, and marketing

Wayne State University Mike Ilitch School of Business E 2771 Woodward Avenue, Detroit 48201 (313) 577-4511ilitchbusiness.wayne.edu

MBA; MSA; MS in data science and business analytics (offered jointly with Detroit, Warren, Clinton the WSU College of Engineering); MS in finance; executive MS in Township, Livonia automotive supply chain management; graduate certificates in business, entrepreneurship and innovation; joint J.D./MBA, Ph.D. in business with tracks in finance, management and marketing MBA in aviation, computer information systems, finance, general Grand Rapids, Kalamazoo business, health care, management, marketing, international business; MBA/J.D., MBA/M.D., M.S. in accountancy

Western Michigan University Haworth College of Business 2100 Schneider Hall, Kalamazoo 49008 (269) 387-5133

GMAT 450 $741.62 in Ph.D. 600 state; $1,486.68 nonresident GMAT 450 or $635.95 equivalent GRE score

Information for this list was provided by the schools through surveys or their websites. It is not a complete listing, but the most comprehensive available. NA = not available. NR = not required.

B 2018-19: $717 per credit. C Also known as Stephen M. Ross School of Business at the University of Michigan D No longer accepting new campus-based enrollments, however you can still enroll for an online program at phoenix.edu. Current students will continue on-site instruction. E Formerly Wayne State University School of Business Administration LIST RESEARCHED BY SONYA D. HILL

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

Southfield Marriott hotel sports new look in $12 million makeover Need to know

By Tyler Clifford tclifford@crain.com

The Detroit Marriott Southfield Hotel has completed a two-year, $12 million renovation of its entire campus in Southfield. It’s the first of the full-service Marriott hotels in the Detroit area to receive the new designs that Palm Desert, Calif.-based Marriott International Inc. has been to rolling out, DMS Director of Sales Valerie Theisen said. The project replaced guest room carpet with hardwood floors, added low-profile platform beds and walkin showers, among other highlights. The hotel now has a new concierge lounge and a new business center. The makeover was broken into two phases that began with the hotel’s public spaces in 2016, including banquet and event rooms, followed by each of its 226 rooms in 2017. Kearney, Mo.-based AMC Construc-

SPOTLIGHT Braunstein named CEO at JARC

JARC has named Shaindle Braunstein to become its next CEO, effective July 2. Braunstein, a former production manager for Crain’s parent company Crain Communications Inc., will join the Farmington Hills-based nonprofit after Braunstein spending nearly seven years at the Jewish Family Service of Metropolitan Detroit. There she served about four years as COO.

JJFirst Detroit area location to receive company's new design JJ$12 million renovation carried out over two years JJHotel last received an update in 2005

tion & Remediators handled the contract work. The chain location, which opened nearly three decades ago, last received an update in 2005. “We were due for a renovation. Marriott has specifications for any Marriott going under a renovation,” Theisen said. “They completely demolished the rooms down to the stud and rebuilt the rooms. They have new drywall and everything.” The hotel is owned by Hong Kong real estate firm Junson Capital and managed by Fairfax, Va.-based Crescent Hotels & Resorts LLC, Theisen said. Braunstein replaces Robert Blumenfeld, who left the nonprofit in late 2016 after about 11 months and is now COO of American Red Cross Michigan. JARC President and Chairman of the board David Carroll filled in as interim CEO. Board President-Elect Howard Luckoff led the CEO search team. Braunstein will oversee a nonprofit that employs about 250 to serve people with developmental disabilities. JARC offers group homes, independent living support and in-home respite care to more than 115 people who cannot take care of themselves, Carroll said.

UM appoints vice president for IT

The University of Michigan hired a new vice president for information

MARRIOTT INTERNATIONAL INC.

The Marriott hotel in Southfield received a complete $12 million renovation that added an outdoor patio and fire pit, a business lounge and new concierge lounge among other things.

technology and chief information officer. Ravi Pendse’s five-year appointment begins Aug. 1. He replaces Kelli Trosvig, who left her five-year role after a year. Pendse Andrew Rosenberg, chief information officer at Michigan Medicine, had been serving as interim since the job was posted in January. Trosvig became the university’s first vice president of IT in October 2016. The university did not specify why she left. Pendse comes from Brown University, where he has worked as vice president of IT and CIO since 2013.

ADVERTISING SECTION www.crainsdetroit.com/onthemove To place your listing or for more information, please call Debora Stein at (917) 226-5470 or email: dstein@crain.com

FINANCIAL SERVICES Kevin Davis Commercial Relationship Manager, VP

Old National Bank Old National Bank announces the addition of Kevin Davis, Commercial Relationship Manager, VP. He will be responsible for expanding the bank’s commercial lending portfolio in the greater Southeastern Michigan area and will work out of the company’s regional headquarters in Ann Arbor.

ARCHITECTURE Richard JP Renaud, AIA Director of Building Envelope Performance

Quinn Evans Architects Quinn Evans Architects has named Richard JP Renaud, AIA, as Director of Building Envelope Performance. Renaud will lead the firm’s services in environmental and energy performance assessments as well as the design and detailing of building enclosures. Renaud has more than 20 years of experience managing complex historic preservation projects including the modernization design for the National Air and Space Museum.

KNOW SOMEONE ON THE MOVE? For more information or questions regarding advertising in this section, please call Debora Stein at (917) 226-5470 or email: dstein@crain.com

XODETROIT.COM

A new website called xodetroit.com is a Dan Gilbert-backed promotional tool for food, shopping and entertainment in downtown Detroit.

New website aims to market downtown happenings By Kurt Nagl knagl@crain.com

A new website aimed at promoting downtown Detroit as a destination for food, entertainment and shopping launched this week. XOdetroit.com, which went live Wednesday in beta mode, aggregates existing information on downtown hot spots and happenings and presents it in a user-friendly format, Nick Perold, Bedrock’s vice president of marketing, said in an email. It is funded by Detroit-based Bedrock and the Quicken Loans Community Investment Fund. The companies do not disclose financial details of projects, Perold said. Southfield-based ad agency Doner is assisting in development of the site, said Francesca George, director of tenant relations and experience for Bedrock. The website is intended to be permanent and up to date with information related to downtown retailers, bars, restaurants, markets, parks and events. It will compile content and programming provided by partners

Need to know

JJLaunched Wednesday in beta mode JJPulls existing information from city of Detroit, Culture Source, DDP JJAd agency Doner assisting in website development

such as the city of Detroit, Downtown Detroit Partnership and nonprofit Culture Source. “XO Detroit is an additional resource for the growing number of people looking to learn what there is to do in downtown Detroit and to navigate the city easily,” Perold said. “XO Detroit is meant for everybody but especially for people with who are interested in the momentum downtown and want more clarity about what exactly they can do during their time in the city.” Users can type in destinations to the site — Campus Martius, Capitol Park, Beacon Park, etc. — and receive a list of nearby hot spots and events. George said the site should be fully running in the next couple of weeks.

Page 2

CRAIN CRAIN’S DETRO I T ’SBDUETROIT S I NBEUSINESS S S // M A Y 2 8 , 2 0 1 8

Marquette Castings is filling pre-orders through online campaigns and plans to launch sale of the Michigan-made line of skillets later this summer on its website.

SKILLETS FROM PAGE 3

Maker roots The Steckling brothers were “makers” long before the term gained popularity, building everything from rockets to robots in their father’s basement workshop at their family home in Clarkston. Kurt, 41, took an interest in electronics. Eric, 36, said he dove more into carpentry; and Karl, 39, did a little bit of everything. While working as a client services consultant for Pitney-Bowes in 2012, Eric Steckling put his hobby to use. Spurred by his young children, he began designing and making children’s picnic tables from thick, recycled plastic sheeting through his then-company Noble Argon LLC. Working with a few small retailers in Ann Arbor and then online, he sold a few tables before dissolving the company. After co-founding Brio Product Group LLC, an online personal-care products business, in 2014 with his older brothers, Steckling began focusing on improving on products already in the market — like giving a Sonic toothbrush longer battery life and offering a subscription for the toothbrush heads. He made the jump to cast-iron cookware a year later when the pans he and his wife received for their wedding began falling apart less than 10 years later. Steckling began researching alternative cookware, which led him to cast iron, and looking for a manufacturing process that could produce the quality of skillets passed down through generations of families. “The cast iron manufactured today is terrible quality compared to the vintage pans made years ago,” Steckling said. He and his brothers founded Mar-

quette Castings in 2015 as a division of Brio. The businesses share space with Vectorform LLC, Kurt and Karl Steckling’s digital products company.

Craving quality Cast iron produced by other companies goes through an automated, sand-casting process that adds weight and leaves a rough surface, Steckling said. By contrast, old pieces of cast iron handed down through the years are lighter and smoother, making them easier to use and maintain. The process used to make vintage cast-iron pans from 45 to 125 years ago used a handmade sand-casting method with much finer sand through a much slower, labor-intensive process, Steckling said. Investment casting, which has been used across diverse industries for cast-iron parts, yields skillets that are much closer to the original cast-iron pans, he said. The process involves forming a skillet from wax and lining several up on a tree of sorts, or sprue, that is then dipped into a ceramic and sand slurry. It’s dried and the process is repeated a few more times to build a shell. The manufacturer then heats up the sprue and melts off the wax, leaving a ceramic mold cavity into which it can pour the molten iron. Once the skillet hardens, they break the mold.

Making it local When the Steckling brothers founded Marquette Castings, named for Michigan’s “Iron Town” in the Upper Peninsula, it outsourced production to China. “I wanted to make the skillets in Michigan; but after talking to a number of foundries, I was pretty confident that we wouldn’t be able to cost effectively investment-cast skillets in the USA,” Steckling said, adding that quotes from local foundries at

that time ranged from a few hundred dollars to a few thousand per skillet. But the company found it challenging to communicate with Chinese suppliers about the skillet manufacturing process and quality issues from a distance, he said. Beyond that, customers were asking for U.S.-made cookware. Steckling said some consumers, unaware most cookware sold in the U.S. is made in China, have trust issues with cookware made there. Marquette Castings is filling pre-orders through online campaigns and plans to launch sale of the Michigan-made line of skillets later this summer on its website. The company launched the Kickstarter campaign in October 2016 to help fund tooling, surpassing its $30,000 goal by raising $86,612 from 577 backers. Then Marquette Castings moved the campaign to Indiegogo so it could continue to accept pre-orders, raising almost $51,000 more and bringing its total number of pre-orders to 137,536. “We wanted to broad test the market to make sure we’re not totally crazy,” Steckling said. “Getting that initial buy-in and feedback from consumers was helpful.” Eventually, Marquette Castings was able to reach an acceptable price with a foundry to make the skillets locally. National talk of tariffs didn’t factor into the company’s decision to bring production back to the U.S., Steckling said, noting the founders made the decision long before the recent trade talks. But, he said, the talk has increased steel prices even for domestic supplies. Last year, Brio and Marquette Castings posted about $1 million in combined sales, Steckling said. The cast-iron cookware business accounted for about $400,000 of that. "We definitely expect interest... and sales...to go up,” Steckling said.

May 28, 2018 61

PHOTO BY MARVIN SHAOUNI/MARQUETTE CASTINGS

With the launch of the new made-in-Michigan cast-iron skillets, he’s projecting Marquette Castings’ sales will increase to about $700,000 this year, as the majority of the Michigan-made pans become available during the fourth quarter. The skillets run $195 for a 10.5-inch pan and $225 for a 13-inch. “We know it works, and we know it’s safe.” He added that the material and process used in Marquette Castings products is the same used 150 years ago. Last month, the business, which employs four, added to its cast-iron, Dutch oven and other product offerings and began selling a 10.75-inch, made-in-Michigan carbon-steel skillet. Marquette Castings is also beginning to work with local chefs like the

“bachelor chef” Ryan Eli Salter, who uses Marquette Castings during pop-up dinners and other events and has done giveaways of some of the products provided. Increased awareness of the health issues associated with coatings on non-stick cookware and aluminum products and the flourishing market for online retail are boosting the cast-iron cookware market, reports Transparency Market Research. Marquette Castings’ primary goal, however, is to bring cast-iron cookware back into people’s kitchens. “I want to reach the younger generation,” Steckling said, “the ones who aren’t handed down cookware.”

JOB FRONT

REAL ESTATE

POSITIONS AVAILABLE

INDUSTRIAL PROPERTY

RETIREMENT SYSTEM OF THE CITY OF DETROIT

Joint Personnel Committee 500 Woodward Ave, Suite 3000 Detroit, Michigan 48226 Job Title: Deputy Chief Accounting Officer Salary Range $82,401 - $108,073 The Deputy Chief Accounting Officer is a newly established position that will report directly to the Chief Accounting Officer. This position is selected by and accountable to the Executive Director and both Boards of Trustees of the Retirement System. The full job description and qualifications are available on the RSCD website at: www.rscd.org If you are interested in this career opportunity, please forward your cover letter, resume and references to: jobs@rscd.org

Sherri Welch: (313) 446-1694 Twitter: @SherriWelch

ST. CLAIR COUNTY, MI 443,000 sq. ft. Portfolio. Industrial, warehouse, offices for sale by owner. $820,000. Gross rent, additional 140,000 ft. Ready to lease, 27 year history. Great potential! Email Contact: srsco3500@gmail.com

Call Us For Personalized Service: (313) 446-6086 FAX: (313) 446-0347 E-MAIL: cdbclassified@crain.com INTERNET: www.crainsdetroit.com/section/classifieds

See Crainsdetroit.com/Section/Classifieds for more classified advertisements

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

MACKINAC POLICY CONFERENCE 2018

TALENT GAP FROM PAGE 1

It doesn’t. Michigan‘s prosperity depends not on outcompeting others, for their wins spill over to our wins. Indiana wins big, we get some wins too. Over the past decade, Michigan has worked on competitiveness by bettering the corporate tax climate that, there’s no denying, has spurred innovation. Michigan is now the 10th best state in the number of patents, out performing peers and stronger states in many other indicators, according to last year’s Business Leaders for Michigan economic benchmarking report. It’s even had strong employment growth, surpassing many states in recent years. Though much of that growth can be attributed to regaining a portion of the jobs lost in the gut-punch of the Great Recession. But Michigan’s gross domestic product per capita, a measure of relative economic strength, has remained stagnant at $44,201 while Massachusetts’ has risen to $66,500 and Colorado’s to $54,026, according to the U.S Bureau of Economic Analysis. And the state’s overall GDP and population have failed to rise.

Lagging in education The reality is Michigan’s leaders cut business taxes and improved the overall business climate for very little improvement in overall performance. Education remains the deadweight holding Michigan back. Michigan ranks 46th in the U.S. for fourth-grade reading proficiency — a metric that continues to trend down — 42nd in career and technical education and 47th in out-of-state college enrollment, according the BLM report. For years, Michigan’s leaders have sparred over school funding, believing spending isn’t linked to outcomes, showing how funding has increased for nearly 50 years without improved test scores. They think the money is misspent and increased funding isn’t the answer. They’re right, to a degree. But it’s impossible to deny cuts hurt children and increases benefit them, particularly for low-income students. Research from Northwestern University in 2016 examined school-funding increases

MACKINAC FROM PAGE 1

“We really want to have a conversation about not just the great progress that this state and this region have made, but what do we need to do next to maintain our 21st Century competitive edge,” Detroit Regional Chamber CEO Sandy Baruah said in an interview for the Crain’s “Detroit Rising” podcast. Michigan’s public education system and bottom-of-the-barrel student achievement is the top-of-mind topic that encircles the question of whether the state is prepared for the auto mobility revolution it’s trying to lead. “There are many issues that our state will need to address that range from funding and the cost to educate … to how do we invest and continue to invest in teachers, to making sure we understand … ways to measure suc-

GDP per capita By state, 2001-2017 STATE Michigan

2001 $40,388

2005 $42,919

2009 $36,676

2013 $40,992

2017 $44,201

% CHANGE 9.44%

Massachusetts

$55,114

$58,776

$59,178

$61,842

$66,500

20.66%

Tennessee

$38,631

$41,868

$39,096

$41,513

$44,348

14.80%

Florida

$39,445

$43,326

$38,695

$38,018

$39,842

Indiana

$40,138

$42,826

$40,572

$43,876

$46,472

15.78%

Colorado

$51,113

$51,473

$49,731

$50,523

$54,026

5.70%

Ohio

$41,941

$44,684

$41,593

$45,262

$48,188

14.89%

SOURCE: U.S. Bureau of Economic Analysis

Education remains Corporate the deadweight income tax As percent of state and local revenues, holding Michigan fiscal year 2014 back. Michigan STATE % STATE RANK ranks 46th in the Tennessee 5.8% 6 U.S. for fourthMassachusetts 5.4% 7 grade reading Indiana 3.5% 19 proficiency — a Florida 3.1% 23 metric that Colorado 3.1% 23 continues to trend Michigan 2.4% 38 down — 42nd in Ohio 0.6% 46 career and SOURCE: Tax Foundation technical igan at $61,875, according to April education and rankings from the National Educa47th in out-oftion Association. After years of near-bottom perforstate college mance on the standardized National enrollment, Assessment of Education Progress according the BLM tests, Tennessee now leads the nation in academic improvement, though report. still below the national average in across the country over a 30-year period and found that if a poor child attends a school that receives a 20 percent funding increase throughout 12 years of public education, that child is more likely to complete an additional year of education, earn 25 percent more as an adult and is 20 percent less likely to be poor as an adult, cited Michigan Futures Inc. in its 2017 education policy plan.

Leadership is key But funding isn’t the whole picture; it’s leadership. Tennessee is a poorer state than Michigan with a GDP per capita at $38,591. And it pays its teachers less at an average of $48,817, below the national average, compared to Mich-

“There’s a whole bunch of issues related to nextgeneration mobility that we really haven’t talked about a lot. And if our state wants to continue to be one of the leading forces in next-generation mobility, we want to make sure we’re teasing those issues out.” — Detroit Regional Chamber CEO Sandy Baruah

Three out of four 10th-graders failed its math standardized test and six of 10 failed the English portion in 1998, according to reporting by Bridge. Its leaders didn’t make the test easier. Instead, it armed teachers and students with higher expectations and resources; now Massachusetts school kids alone outperform many top countries in education on testing.

Unraveling talent puzzle

scores, according to the National Education Association. Michigan, meanwhile, remains stagnant and among the worst states in scores. Tennessee focused on education reform — implementing tougher academic standards, new teacher evaluations and compensation models, improved data tracking and rigorous teacher training and support services. This was accomplished by business leaders, nonprofits, educators and politicians working together with a plan. Massachusetts leads the nation in academic performance. While it outspends Michigan in every educational metric, especially in funding for poor students, its success is also largely due to leadership. Its leaders have continued to raise academic standards, even if it hurts test scores.

But in Michigan, the education puzzle continues to plague our leaders, including Gov. Rick Snyder. The Republican governor’s struggle to find his footing with this issue started with the ambitious Education Achievement Authority, an entity created in 2011 through an interlocal government agreement between Snyder’s emergency manager in Detroit Public Schools and Eastern Michigan University. The EAA took over 15 chronically failing Detroit schools in the fall of 2012. The plan was bedeviled by high staff and student turnover, financial problems and leadership troubles, and the EAA was dissolved last year. Snyder has now turned his attention, and remaining months in office, to a short-term approach to correcting technical education, dubbed the Marshall Plan — named after the U.S.’s $13 billion rebuilding of Western Europe after World War II. Snyder’s $100 million, five-year plan calls for developing 150 competency-based education programs and certificates across the state that involve schools, colleges and employers. Those certificate programs are geared toward filling an estimated 811,000 jobs coming open through 2024, mostly in the fields of information technology, computer science,

cess and outcomes,” said Ray Telang, Detroit managing partner for PwC and chair of this year’s conference. Panel discussions will focus on workforce needs in manufacturing sectors that are becoming increasingly automated, re-skilling employees for new jobs and what can be done to attract and retain new residents with high-demand skill sets. Another panel will center on the forthcoming changes to insurance and government regulations that will be needed for self-driving cars to be traverse Michigan’s roadways in the near future, Baruah said. “There’s a whole bunch of issues related to next-generation mobility that we really haven’t talked about a lot,” Baruah said. “And if our state wants to continue to be one of the leading forces in next-generation mobility, we want to make sure we’re teasing those issues out.” Last year’s conference had a pillar

focused on civility, attempting to make a business case for bringing calm to a state and country divided along cultural and ideological fault lines. In the past year, the #MeToo movement has swept across the country, exposing men in positions of power for years of workplace misconduct — and hitting home with the Larry Nassar sexual abuse scandal that has engulfed one of Michigan’s largest institutions, Michigan State University. “Obviously Americans have lost trust in all sorts of institutions — in the media, in businesses, in other kinds of key institutions in our society,” Baruah said. “So we want to talk about not only what is the state of our trust level in our country, but what do we need to do to repair it.” Given that it’s an election year, Grand Hotel porch politicking will be in full swing. The Detroit Regional Chamber’s

manufacturing, health care and professional skilled trades. The decline in vocational education in Michigan began several decades ago as legislators and educational stakeholders began devaluing vocational ed in favor of pushing students into four-year colleges. Former Gov. Jennifer Granholm solidified the state’s position — skilled labor took a backseat to college. The result was a drop in students taking vocational education classes statewide. In the 2006-07 school year, more than 136,000 Michigan students were enrolled in at least one vocational class in high school. That figure dropped to fewer than 108,000 during the 2015-16 school year — leaving a gap between supply and demand. Employers didn’t pick up the slack, largely due to costs. An apprenticeship can cost an employer from $25,000 to $250,000, according to data gathered by the Georgetown University Center on Education and Workforce in Washington, D.C. Of course, there remains a lack of interest in skilled trades from students. The state is now grappling with this in its launch of Going Pro, a marketing campaign to educate parents and students on the financial benefits of learning a skilled trade. It’s unclear whether Snyder’s plan will be successful or whether its meager funding will engage more youth to the areas of employment in demand.

The inevitable question On Thursday, a panel will commence on the island titled “Is Michigan Prepared?” The answer is no and our leaders are to blame. It’s time to grow up. Michigan needs real reform led by real leaders — leaders who understand tough decisions must be made to improve Michigan. That means higher taxes and more cuts to pensions and other services are inevitable. Pain will be plentiful. But putting Michigan’s future ahead of the next election, ahead of the next earnings report and ahead of the next glad-handing policy conference is now required. Reinvesting in Michigan’s youth is the only way forward, and the will to do so requires more steely-eyed leaders than can fit in the Grand Hotel. Dustin Walsh: (313) 446-6042 Twitter: @dustinpwalsh political action committee is hosting a debate Thursday evening for the top three candidates on both sides — Democrats Abdul El-Sayed, Shri Thanedar and Gretchen Whitmer and Republicans Brian Calley, Patrick Colbeck and Bill Schuette. The bipartisan debate will serve as a fundraiser for the chamber’s PAC, costing $200 to get into the Grand Hotel’s theater to see the candidates debate how they will govern Michigan differently. “Given the fact it is an election year, we hope this will be the start of many conversations that will happen throughout the summer regarding what’s most important for the state,” Telang said, “and hopefully will form the basis for a very robust agenda for each one of our candidates going forward.” Chad Livengood: (313) 446-1654 Twitter: @ChadLivengood

Is your business prepared for drastic shifts in health care?

Enormous mergers that blur the lines among payers, middle men and providers are remaking the health care landscape. What should we expect, and what will the effects be once it’s all sorted out?

PANEL DISCUSSION: The Future of Mergers & Acquisitions

Wright Lassiter, CEO, Henry Ford Health System

Joan Budden, CEO, Priority Health

Ewa Matuszewski, CEO, Medical Network One

David Hefner, Vice President of Health Affairs, Wayne State University

Moderator: Jay Greene, Reporter, Crain’s Detroit Business

Thursday, June 21 9-11:30 a.m. Somerset Inn 2601 W. Big Beaver Individual ticket: $80 Reserved table of 10: $850 Young Professional: $56 Are you a Crain’s Detroit Member? Email us at cdbevents@crain.com to receive your individual ticket discount.

AWARD PRESENTATION

Crain’s Health Care Heroes is an annual recognition program honoring top-notch medical innovators and patient advocates dedicated to saving lives or improving access to care. Read the profiles of the 2018 Health Care Heroes by visiting crainsdetroit.com/heroes PRINT SPONSOR

SUPPORTING SPONSORS

Harvard Square Centre

BUILDINGS FROM PAGE 3

Two and a half years ago, Crain’s detailed the remaining vacant eyesores in the central business district, with nine highlighted based on interviews with brokers, developers, architects and other real estate experts. In those 30 months, two-thirds of them have been purchased and viable redevelopment plans have been revealed, leaving a handful of large buildings left to renovate and bring back online. The dearth of vacant buildings is undeniably a good thing, but it also creates a market squeeze. New construction costs are higher than renovation costs, and not everyone in need of good real estate has the pockets of Dan Gilbert, the Ilitch family or Ford to build a new office property. “Detroit for so long had a 60-year decline and now it is back in vogue,” said Dennis Bernard, founder of Southfield-based Bernard Financial

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

Old Wayne County Building

The United Artists Building

Former Detroit Free Press HQ

Former Stardard Savings and Loan

Group that does real estate finance in downtown and the suburbs. “We have technology, we have growth, and now we are needing to come back to just the water level where other states and cities are in terms of population and growth and occupancy and buildings. We only have so many existing buildings we can fill.” Those large, vacant properties in need of rehab remaining on the list are the Fowler Building, owned by New York-based Sequoia Property Partners; the Loyal Order of the Moose Lodge, owned by the Ilitch family; and the Executive Plaza Building, owned by Danou Enterprises Inc., for years with no progress or tenancy. What follows is a look at the buildings that have seen new life following years of neglect.

Broadway Street. Last year, he sold the building to Gilbert, the founder and chairman of Quicken Loans Inc. and Rock Ventures LLC. Retail is expected to be installed on its first floor, while office or residential space is under consideration.

Scientology owned this building that has sat vacant for years with no substantial renovations. Last year, however, the church received a building permit for $8 million in renovations and work has been ongoing since. The church intends to occupy the building.

Former Detroit Free Press headquarters

Harvard Square Centre Controversial Detroit investor Dennis Kefallinos owned this 51,000-square-foot building on

Old Wayne County Building After a New York-based investment group purchased the building, millions have been spent since December 2016 on restoring its historic details. Work continues, although a tenant has not yet been found. Previously owned by Wayne County, the building has been empty for more than a decade.

Former Standard Savings & Loan building The most recent tenant was Raymond James, whose sign still adorns the nine-story building’s roof. For more than a decade, the Church of

GRAND PRIX FROM PAGE 3

The Conservancy meets publicly on the third Thursday of each month. “If they do submit a proposal, we want to see their plans to address concerns people have raised,” said Olson. He and Denker met for an annual briefing about the island before the Detroit City Council last week. Olson said he’ll consult with stakeholders and park staff and will want to closely review the terms of the proposal, including potential non-race-related island improvements and if the race is willing to adjust its fee to use Belle Isle. The nonprofit Grand Prix now pays the state $200,000 to stage races, which draw about 100,000 fans. Additionally, Olson said, the DNR is assessing the race’s environmental impact and is talking to wildlife experts. The 2.3-mile street circuit race uses about a third of the western end of the 982-acre island. The city of Detroit owns the island, which the state has leased since 2014 under a 30-year deal brokered by Kevyn Orr, the then state-appointed emergency manager for Detroit. The Michigan Department of Natural Resources manages the island, which had 4.2 million visitors in 2017 — a significant uptick from a few years ago when it was fewer than 1 million visitors annually.

Competition for island A cadre of critics, some of whom planned a protest on the island over Memorial Day weekend, oppose the race’s continued use of the island. They want it moved elsewhere because, they

The Grand Prix was mothballed after 1997 until Roger Penske championed and invested in the race’s return to Detroit in 2007.

said, it’s an inappropriate use of a state park by a private entity and because it robs people of using Belle Isle for a long stretch in springtime. Others want to scale back the race’s presence. Race officials said they’ve reduced set-up and tear-down on the island by 27 days since 2015 to no more 68 days and have made other accommodations, include keeping roads open longer and rearranging safety barriers to allow more and longer public access. “We’ve discussed and made changes after listening to feedback from dissenters and proponents,” Denker said. He and other Grand Prix defenders said event organizers invested about $13 million since the race relaunched in 2007. That money has gone into not only road improvements but also renovation of the Scott Fountain, the Belle Isle Casino and the Belle Isle Boat Club; installation of new pedestrian bridges and playscapes; lighting and drainage systems; and new pedestrian

walkways and bicycle paths. “There’s a balance to everything and a compromise,” Denker said. “We’ve listened to the public. There are those that are not going to be happy unless the race isn’t on Belle Isle. There are always people not pleased with progress and growth. We also have to be responsible to the 90,000 people that are proponents for our event, who come from other cities and states and countries.” Organizers looked at alternative race locations and none work, he said. “Having it in the downtown would be a major issue with commerce,” Denker said, because the area has undergone significant revitalization and is much busier and more vibrant than when the race was run on city streets from 1982-91. “It would be huge, huge interference. That simply wouldn’t be an option.” The race originally was run around the Renaissance Center downtown from 1982 to 1991, then on Belle Isle

The United Artists Building This Ilitch family-owned property at 150 Bagley St. is on the books to become 148 residential units with first-floor retail space, although historic preservationists and others remain skeptical the property will actually be redeveloped. The project was announced last year as part of a broader effort to bring nearly 700 apartments to The District Detroit, which is anchored by Little Caesars Arena and spans a 45-50 block redevelopment area. However, that series of six projects has since been scaled back to four with 453 units. from 1992 to 1997. The Grand Prix was mothballed after 1997 until Roger Penske championed and invested in the race’s return to Detroit in 2007. Penske founded in 1985 what’s now Penske Corp. in Bloomfield Hills and is owner of Penske Racing. Denker has been a Penske lieutenant since 2005 and now is president of Penske Corp. A former executive with Eastman Kodak, Pillsbury Co. and PepsiCo Inc., Denker has been Grand Prix chairman since 2007. They’ve also looked at Detroit’s cityowned airport and the old state fairgrounds as possible race locations, but those present a mixture of problems — from being too small of a footprint to creating intolerable traffic congestion issues, Denker said. “If we don’t have it on Belle Isle, we won’t have the race here in Detroit,” he said. “It’s been a great venue for us in terms of the views, the sights and sounds of it. We’ve shown we can put a great event on there.”

Not about profit The Grand Prix canceled the 200911 events because of the recession. The event is unable to pay for itself despite having 77 corporate sponsors for the second year in a row. Even with a subsequently improved local economy, the race needs more than a $1 million subsidy from Penske Corp. to avoid losing more than $1 million a year. The races cost about $11.5 million to stage. “We support the losses incurred from the event and are its backstop, so to say,” Denker previously told Crain’s. “It’s not a profit-maker.” In fact, the Grand Prix is a 501(c)(3)

Gilbert’s Bedrock LLC real estate development, management and leasing company purchased the former newspaper building for $8.43 million in September 2016 and is in the process of a nearly $70 million redevelopment with retail, office space and about 130 residential units. It originally opened in 1925.

Park Avenue Building Ralph Sachs owned this building for decades. He died last year, and Novi homebuilder Rino Soave purchased it last month. Soave plans to spend $7 million to $10 million redeveloping the 102,000-square-foot building into 75-100 apartments with 4,000-5,000 square feet of first-floor retail in an effort he expects to begin next year. Kirk Pinho: (313) 446-0412 Twitter: @kirkpinhoCDB nonprofit and a subsidiary of the Downtown Detroit Partnership, a private-public partnership of corporate and civic leaders of which Penske is formerly chairman. It’s aimed at making improvements in the city. Eleven corporate sponsors are new this year, Denker said. Chrysler and Lear Corp. are the largest returning backers and have their names as part of the official race title. Their investments haven’t been disclosed. The weekend features several types of racing, with the major event being the two “Dual in Detroit” Verizon IndyCar Series races on Saturday and Sunday. The IndyCar series — whose annual premier event is the Indianapolis 500, which will be run May 27 — is the sanctioning body for U.S. open-wheel auto racing. About 1,000 people are employed to handle the race set-up, the event itself and then the tear-down. Another 1,100 volunteers are on the island for the weekend, Denker said. “It becomes a small city,” he said. There is another change the race will make — if it returns in 2019 — to accommodate the forthcoming garden that noted landscape designer Piet Oudolf will create on 1.5 acres near the Nancy Brown Peace Memorial Carillon and the Anna Scripps Whitcomb Conservatory. That spot is used now for a 4,000-seat general admission grandstand during the Grand Prix. “We would have to relocate that grandstand and ensure people are allowed access to that garden as long as possible,” Denker said. “We’re not going to stand in the way of that.” Bill Shea: (313) 446-1626 Twitter: @Bill_Shea19

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

Henry Ford, Wayne State pediatric deal in works www.crainsdetroit.com Editor-in-Chief Keith E. Crain President KC Crain Group Publisher Mary Kramer, (313) 446-0399 or mkramer@crain.com Managing Editor Michael Lee, (313) 446-1630 or malee@crain.com Product Director Kim Waatti, (313) 446-6764 or kwaatti@crain.com Digital Product Manager Carlos Portocarrero, (313) 446-6056 or cportocarrero@crain.com Creative Director David Kordalski, (216) 771-5169 or dkordalski@crain.com News Editor Beth Reeber Valone, (313) 446-5875 or bvalone@crain.com Special Projects Editor Amy Elliott Bragg, (313) 446-1646 or abragg@crain.com Design and Copy Editor Beth Jachman, (313) 446-0356 or bjachman@crain.com Research and Data Editor Sonya Hill, (313) 446-0402 or shill@crain.com Newsroom (313) 446-0329, FAX (313) 446-1687, TIP LINE (313) 446-6766

REPORTERS Tyler Clifford, breaking news. (313) 446-1612 or tclifford@crain.com Annalise Frank, breaking news. (313) 446-0416 or afrank@crain.com Jay Greene, senior reporter Covers health care. (313) 446-0325 or jgreene@crain.com Chad Livengood Covers Detroit rising. (313) 446-1654 or clivengood@crain.com Kurt Nagl Breaking news. (313) 446-0337 or knagl@crain.com Kirk Pinho Covers real estate. (313) 446-0412 or kpinho@crain.com Bill Shea, enterprise editor Covers the business of sports. (313) 446-1626 or bshea@crain.com Dustin Walsh, senior reporter Covers economic issues. (313) 446-6042 or dwalsh@crain.com Sherri Welch, senior reporter Covers nonprofits and philanthropy. (313) 446-1694 or swelch@crain.com MEMBERSHIPS CLASSIC $169/yr. (Can/Mex: $210, International: $340), ENHANCED $399/yr. (Can/Mex: $499, International: $799), PREMIER $1,299/yr. (Can/Mex/International: $1,299). To become a member visit www.crainsdetroit.com/ membership or call (877) 824-9374

By Jay Greene jgreene@crain.com

Wayne State University School of Medicine is deep in negotiations to create a new academic pediatric department and merge it into Henry Ford Medical Group as an integrated medical practice of more than 220 pediatricians, according to interviews and affiliation documents Crain’s has obtained from Wayne State. Affiliation documents also show there is a possibility that Henry Ford Hospital could reopen its inpatient pediatric unit, which closed 15 years ago after former Henry Ford CEO Nancy Schlichting struck an agreement with Herman Gray, M.D., now Wayne State’s chairman of pediatrics, when he was CEO of DMC Children’s Hospital of Michigan. Henry Ford merged its pediatric residency program with Children’s Hospital in 2002 and now regularly transfers complicated inpatient cases to the for-profit hospital. But in an interview with Crain’s, Gray said if Wayne State and Henry Ford merge pediatric departments as part of larger negotiations, called Project Leapfrog, all that may be needed is for Henry Ford to increase the number of inpatient beds at Henry Ford West Bloomfield and Henry Ford Macomb Hospitals in Clinton Township because of flat pediatric admissions. Gray said that talks to merge Wayne State’s 140-physician pediatric department into Henry Ford’s 80-physician pediatric primary care group has been positive with few disagreements. He said a small group that includes himself and Henry Ford pediatrics chair

Charles Barone, M.D., and medical group COO Tom Nantais have produced positive results. “We have the ability to speak honestly about the upsides and Herman Gray: downsides with ‘There really is a the knowledge bright future’ that there is a bigger agreement being negotiated,” Gray said. “There are general pediatricians at Henry Ford and Wayne State has specialists (and 20 generalists) and that makes for easy integration. There is not a lot of arm wrestling and concern from people about taking my patients. This happens sometimes about doctors talking about a merger.” If the agreement is signed between Henry Ford and Wayne State, Gray would become chairman and Barone vice chairman, Wayne officials said. Gray and Barone, both in their 60s, are friends and have known each other since they were in medical school. “I believe that the vision of what can be created” with Henry Ford “is so much better than what we currently have” with DMC Children’s Hospital, “even prior to the dispute” with DMC on contract issues, Gray said. “There is such a symbiotic relationship in pediatrics between Henry Ford and Wayne State and its faculty. There really is a bright future.” In January, when Gray became chairman of Wayne State pediatrics, he was optimistic he could “lower the tem-

perature” and possibly mend the broken fences between Wayne State and University Pediatricians, the primary medical group at Children’s Hospital and a former clinical affiliate of the medical school. The organizations had been at odds for years. Gray knew all the players because he either trained them as a resident, practiced with them as colleagues or got to know then when he headed Children’s Hospital as its CEO from 2005-2013. “I came here because this place (Wayne State) is important,” said Gray, who graduated from the University of Michigan Medical School in 1976 and was chief pediatrics resident at Children's in the late 1970s. “I grew up at Children’s and Wayne State, too. I underestimated how entrenched the doctors are. I am disappointed with what I have seen in the relationships between faculty members.” But Gray said he was optimistic he could help solve the differences. “I thought I could solve the problem. I know these people, and I know what it takes to run a hospital with tight budgets and aggressive targets.” But Gray said by late January he became pessimistic that the relationship between UP and Wayne State could be salvaged. “There is always a chance because I have a positive attitude, but I don’t believe so. They have no interest to do anything different than their mission has been for a long time” to become fully independent and a contractual partner with Wayne State, Gray said. At the same time, Gray said as he became involved in talks with Henry Ford

he became excited about the possibilities of forging a much stronger affiliation because of the common cultures. After a long estrangement, on March 21, University Pediatricians officially terminated its affiliation with Wayne State as a clinical practice group. UP, a 220-member specialty practice, has been at odds for more than 10 years with Wayne State over university bylaws and contract issues. Over the past year the relationship has become even more acrimonious, with dueling lawsuits over university policy issues and the desire of UP to become more independent and closer to DMC’s owner, Tenet Healthcare Corp. of Dallas. With the backing of Tenet DMC, UP has engaged in negotiations with the University of Michigan Health System on potentially replacing Wayne State as its academic sponsor. UM has declined to talk about the negotiations. If an affiliation deal is reached, it would give UM a long-sought foothold in the Detroit market that could potentially grow from pediatrics into adult services. In a statement earlier this year, DMC CEO Anthony Tedeschi, M.D., confirmed DMC has been negotiating with the University of Michigan. “We have to do what’s needed to provide top-notch care for Detroit’s children, and it is with that goal in mind that we have engaged in talks with University of Michigan C.S. Mott Children’s Hospital and other academics about potential affiliations,” Tedeschi said. “It’s imperative that DMC ensures that the children in our community have access to a world-class medical teaching center. It’s all about our kids.”

ADVERTISING Sales Inquiries (313) 446-6032; FAX (313) 393-0997 Director of Sales Lisa Rudy Director, Crain Custom Content Kristin Bull, (313) 446-1608 or kbull@crain.com Senior Account Manager/Political Specialist Maria Marcantonio Advertising Sales Lindsey Apoctol, Heidi Martin, Sharon Mulroy, Diane Owen, Kate Rozek Classified Sales Kate Rozek, (313) 446-6086 Events Director Kacey Anderson Director of Marketing Christina Fabugais-Dimovska Senior Art Director Sylvia Kolaski Media Services Director Hussein Abdallah, (313) 446-0400 or sabdallah@crain.com Integrated Marketing Specialist Keenan Covington Sales Support Suzanne Janik CUSTOMER SERVICE Single copy purchases, publication information, or membership inquiries: Call (877) 824-9374 or customerservice@crainsdetroit.com Reprints: Laura Picariello (732) 723-0569 or lpicariello@crain.com Crain’s Detroit Business is published by Crain Communications Inc Chairman Keith E. Crain Vice Chairman Mary Kay Crain President KC Crain Senior Executive Vice President Chris Crain Secretary Lexie Crain Armstrong Chief Financial Officer Robert Recchia 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 1st issue in January and last issue in 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. Contents copyright 2018 by Crain Communications Inc. All rights reserved. Reproduction or use of editorial content in any manner without permission is prohibited.

Kapnick Insurance Group is one of the leading privately-held insurance brokers in the state ŽĨ DŝĐŚŝŐĂŶ͘ KƵƌ ŽĸĐĞƐ ŝŶ ĚƌŝĂŶ͕ ŶŶ ƌďŽƌ͕ ĂŶĚ dƌŽǇ ĞŶĂďůĞ ƵƐ ƚŽ ƐĞƌǀŝĐĞ ŽƵƌ ŽǀĞƌ ϱ͕ϬϬϬ DŝĐŚŝŐĂŶ ďĂƐĞĚ ĐůŝĞŶƚƐ͘ Ɛ ƚŚĞ ƐŽůĞ ƐƐƵƌĞǆ 'ůŽďĂů ƉĂƌƚŶĞƌ ŝŶ DŝĐŚŝŐĂŶ͕ ǁĞ ĂƌĞ ĂďůĞ ƚŽ ůĞǀĞƌĂŐĞ ŽƵƌ ƌĞůĂƟŽŶƐŚŝƉƐ ƚŽ ĂůƐŽ ƉƌŽƚĞĐƚ ǇŽƵƌ ĂƐƐĞƚƐ ŽƵƚƐŝĚĞ ŽĨ ƚŚĞ ƐƚĂƚĞ ĂŶĚ ĐŽƵŶƚƌǇ͘ tŝƚŚ ĞƐƚĂďůŝƐŚĞĚ ŽƉĞƌĂƟŽŶƐ ĨŽƌ ŵŽƌĞ ƚŚĂŶ ϳϬ ǇĞĂƌƐ͕ ǁĞ ŚĂǀĞ ƚŚĞ ŬŶŽǁůĞĚŐĞ ĂŶĚ ĞǆƉĞƌƟƐĞ ƚŽ ŚĞůƉ ǇŽƵƌ ďƵƐŝŶĞƐƐ ƚŚƌŝǀĞ ĨŽƌ ǇĞĂƌƐ ƚŽ ĐŽŵĞ͘

kapnick.com| |888.263.4656 888.263.4656 || Adrian Adrian ••Troy Troy••Ann AnnArbor Arbor kapnick.com

TALKS FROM PAGE 1

“We share a common vision with Wayne State University that the overall health and wellness of our community depends on a strong commitment to medical education, research and clinical innovation,” John Popovich, M.D., CEO of Henry Ford Hospital, said in a statement to Crain’s. “That shared vision has been the basis of the successful collaboration between our institutions and created a mutual desire to advance and deepen that relationship.” Talks have included Popovich and more than a dozen other executives and physicians such as Wayne State University President M. Roy Wilson, M.D., and Henry Ford CEO Wright Lassiter III. The executives hope the negotiations will lead to an exclusive agreement that would create a range of opportunities for Wayne State’s 18 clinical and academic departments and for Henry Ford’s six hospitals and 28 outpatient medical centers. One of the affiliation documents estimates the Project Leapfrog agreement could generate as much as $200 million overall for Wayne and Henry Ford in additional clinical hospital and physician billings, enhanced Medicaid payments and additional graduate medical education funding. The options under discussion include merging the university’s 330-physician faculty practice plan into 1,200-physician Henry Ford Medical Group and creating a new and tightly integrated pediatric department among Henry Ford’s 80 primary pediatricians in 20 practice locations in Detroit and Jackson and Wayne State’s 130 specialist and generalist pediatricians. Wayne State doctors could maintain their own offices, although some are expected to move over time to Henry Ford or new locations. Wayne doctors also would be integrated into Henry Ford’s integrated care continuum, benefiting from cross-referrals from Henry Ford’s primary care doctors. They would continue to see patients at the medical group’s Troybased outpatient surgery and diagnostic center. It is possible that Wayne’s Troy outpatient center could be consolidated with a Henry Ford medical center, affiliation documents show. Longer-range plans in a 2025 vision statement of what might be possible could include building a “Wayne State University Health Sciences Quad at Henry Ford” across from Henry Ford Hospital on West Grand Boulevard in Midtown. Adjacent to the proposed health sciences building is the $155 million Brigitte Harris Cancer Pavilion, a six-story outpatient cancer center, that is undergoing construction. Henry Ford owns 300 acres south of its flagship hospital and has strategic plans for a $500 million south campus health and community project. The 2025 vision also includes potentially a jointly funded second clinical research building, adjacent to Wayne State’s Integrated Research Building, iBio, which is also located near Henry Ford’s corporate headquarters, One Ford Place. It would be called “iBio2.” Affiliation discussions, which have picked up speed the past several months and have led to nearly 25 draft letters of intent, also could include building a new public health school for Wayne State that would be “attuned to the Detroit community’s unique needs and leverages its diverse population.”

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

How current talks began

Price tags for the new health sciences, iBio2 and public health school were not included. In fact, none of the documents had any capital or operational costs for the buildings, or new institutes that include neurosciences, oncology, perinatology, pediatrics and eye care that could be part of the affiliation.

Medical education, research plans Officials for Wayne State and Henry Ford also have on the drawing board a long-term plan that would combine undergraduate and graduate medical education programs. The merger could create one of the largest such programs in Southeast Michigan. A consolidation could expand opportunities for seasoned faculty members, practicing doctors, research scientists and budding medical students and residents, documents state. Wayne State sponsors eight residency and two fellowship programs with 143 residents and two fellows. They include anesthesiology, dermatology, family medicine, otolaryngology, physical medicine and rehabilitation, urology and internal medicine. Henry Ford sponsors 66 residency programs across a broad spectrum of disciplines at its four teaching hospitals with 911 residents and fellows. From 2018 to 2021, Wayne State could move more third and fourth year students from other hospitals, including some based at DMC to Henry Ford, and Henry Ford would wind down non-Henry Ford relationships, affiliation documents state. The plan calls for clinical departments to be combined, with most having a chair and a vice chair to oversee clinical and academic activities. They would have dual reporting lines to Henry Ford’s CEO and Wayne’s medical school dean. The combination also could include merging WSU’s $247 million research department with Henry Ford’s $94 million research department, creating a $341 million-plus research enterprise that would rank 74th-largest in the nation, up from 100th in 2016, according to the National Science Foundation. The University of Michigan is ranked second with $1.4 billion and Johns Hopkins University ranks first with $2.3 billion. Under one version of the plan, which like other ideas haven’t yet been approved by the partners, Henry Ford would be Wayne State’s primary clinical partner and Wayne State would be Henry Ford’s. The partnership would lead to co-branding. For example, the institutional names could change to Wayne State University Health Sciences at Henry Ford Health System and the Henry Ford University Hospital, affiliated with Wayne State University, documents show.

Impact to Detroit Medical Center, Karmanos Over the next several years, Henry Ford could replace Detroit Medical Center as the university’s primary medical center partner. Talks over that relationship are going on even though Wayne and DMC are also in the midst of negotiating a clinical services and administration contract. Depending on negotiations, Wayne officials hope the university could maintain contract relationships with DMC and at the same time work more closely with Henry Ford. This hybrid mixed-hospital arrangement could be the model for the next 20 years, but it also could be of a shorter term, affiliation documents say.

WAYNE STATE UNIVERSITY

Wayne State University’s School of Medicine has a relationship with the Detroit Medical Center that goes back a century.

David Hefner: Wayne Medical dean

Wright Lassiter III: Henry Ford Health CEO

DMC has 102 residency and fellowship programs with more than 1,075 residents and fellows. In addition, the teaching hospital system trains 893 medical students each academic year, including 601 Wayne State allopathic students, 134 osteopathic students from Michigan State University College of Osteopathic Medicine and 158 other students from other U.S. medical schools. But because Henry Ford Hospital gave up its inpatient pediatric unit to DMC Children’s Hospital of Michigan more than 20 years ago, Wayne State and Henry Ford doctors would continue to refer complex pediatric patients to DMC Children’s. However, affiliation plan documents call for the possibility of reopening an inpatient pediatric unit at Henry Ford Hospital, diverting some patients from Children’s. “As part of that plan going forward, we are in discussions to explore ways of improving the academic partnership between our institutions,” Popovich said. “This endeavor is, in no way, intended to negate or damage the relationships both Henry Ford and WSU have maintained with Tenet and DMC. We value and respect DMC’s critical presence and role in southeast Michigan and will continue to do so.” Tenet Healthcare Corp., a Dallas-based investor-owned chain with 69 hospitals in the U.S., owns six-hospital DMC, including Children’s Hospital. Any changes in the Wayne StateDMC relationship could have repercussions for the complicated web of financial relationships the institutions have. If Wayne State struck a comprehensive deal with Henry Ford, it could at some point affect the Perinatal Research Branch housed at DMC Hutzel Women’s Hospital. The contracts for the Perinatal Research Branch housed at the DMC is held by Wayne State. The PRB is a federally funded research program designed to study ways to reduce infant mortality rates. The affiliation documents suggest Wayne State could want to “leverage” the PRB by asking the U.S. National Institutes of Health to allow the program to extend to Henry Ford Hospital. The different populations of

John Popovich: Henry Ford Hospital CEO

M. Roy Wilson: Wayne State president

women at Hutzel and at Henry Ford could benefit perinatal research, Wayne officials said. In 2013, Wayne State renewed its 10-year contract for the PRB at DMC with the NIH. Detroit was chosen because of the expertise of Wayne State’s Department of Obstetrics and Gynecology and the high number of pregnant women in Detroit with a higher-than-average rate of infant mortality. An affiliation with Henry Ford could also affect the Comprehensive Cancer Care designation of Barbara Ann Karmanos Cancer Hospital, which is located on the DMC campus. Wayne State is the fiscal agent of the Comprehensive Cancer Center designation at Karmanos, where many Wayne State faculty oncologists and researchers work. Affiliation documents suggest that Wayne State wants to work with Karmanos to extend its the Comprehensive Cancer Center designation to Henry Ford Hospital for enhanced research and clinical care. Gerold Bepler, M.D., said he is aware of Wayne State’s interest in forming a consortium with Karmanos and Henry Ford. However, he said Karmanos would have to concur with plans for a consortium, which would then need to be approved by the National Cancer Institute. “There have been discussions with National Cancer Institute about this ... There are very clear rules from NCI. There are a couple cancer centers that are consortium cancer centers,” said Bepler, noting the closest one is Case Western Reserve University and the Cleveland Clinic, which is the consortium partner. “They have defined rules. The main partner (Karmanos) has to agree,” he said. “Theoretically we could form a consortium with Henry Ford or St. John. We have talked about the possibility, but it is not a viable option.” But Bepler said any change in affiliation between Wayne State and DMC would not affect Karmanos because it has a separate relationship with the university. Most of the clinicians and all of the researchers at Karmanos are on the Wayne state faculty, including Bepler.

After four months of serious contract and affiliation talks in early 2016 with DMC, Wayne State officials concluded in April that DMC and Tenet were not serious about forging a “transformational” agreement they had discussed for months with former CEO Joe Mullany. In fact, the two had very different interpretations about what transformational meant in the larger context. For example, DMC wanted to acquire University Physicians Group, Wayne’s faculty practice plan. Wayne wanted mutual strategic planning and deeper investments by DMC in research, faculty development and clinical services. Hefner said he had a phone conference call on March 30, 2016, with Tenet Vice Chair Keith Pitts about what it would take from a collaborative and contract funding standpoint to forge a transformational agreement with Wayne State. He told Pitts it would include “substantial upfront investments to build the academic flywheel.” ‘Keith told me we don’t have this model at Tenet,” said Hefner, who has known Pitts for many years. “I said, ‘OK, then we will be a great transactional vendor.’” Many, if not all, of the nation’s 151 medical schools have deep partnerships with their primary teaching hospitals that cover medical education, clinical services and research. In a previous interview with Crain’s, Jack Sobel, M.D., dean of Wayne State’s medical school said the university critically needs a like-minded hospital partner and physicians willing to “share our vision and ambition.” He said he also concluded that DMC’s owner Tenet doesn’t share Wayne State’s values. DMC officials have said they wish to remain a contractual partner with Wayne State and hope they can continue their relationship. “We gave them (DMC) a chance (at transformational) and they weren’t interested,” said Hefner, a former president of University of Chicago Medical Center and health care consultant who was recruited to Wayne State in 2015 by Wilson. DMC said in a statement last week about the ongoing contractual talks on clinical services and administration with Wayne State: “DMC and WSU currently have a teaching agreement in place that ensures current students completion of their program. If, for some reason, we are not able to work out an agreement, it would be irresponsible not to explore other possible partnerships where we would have suitable alignment centered around delivering high-quality medical care and maintaining a world-class academic medical center.” While continuing to work on a limited contract with DMC that also would maintain the teaching affiliation, Hefner said he began meeting with most of the health systems in Southeast Michigan in the summer of 2016 about their interest in working on a comprehensive affiliation with the university. He said talks with some systems other than Henry Ford continue. Affiliation documents show that Hefner has talked with Trinity Health Michigan, Ascension Health Michigan, McLaren Healthcare, Beaumont Health and DMC. When Hefner approached Henry Ford’s Popovich during the summer of 2016 to discuss a broad vision and strategy for an affiliation, “he told me damn straight we ought to do it,” Hefner recalled.

A Way Nav form prev Stat recu sele them B vich ers Stat Ford M.D outl Stat E ship ed a pub wou hea ples the Way be u If tiati cou 10 h a to deca Way and inte B wer and clin cian Stat bers ed w U jecti ty ru ed t clos In part and was ness twee Ped W they part vate “R with vers sign cian plan U wor drop thou time the rule othe B noti the cal p trac H the State Tene reac Way docu W caus UM Way a co the 2017 B time con

con2016 conenet g a hey fortwo ons eant

acoup, ayne ning C in and

nferenet at it and ge a with d inents

this has aid, sac-

151 nerhing ucah. in’s, ayne verded willon.” MC’s ayne

wish with con-

nce hey r, a Chicare to

week alks straand reerent pronot t, it lore here ment ring ainmed-

mitould Hefst of chiheir hen. He ther

that alth chimont

enry mer and me Hef-

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8 After several months of talking, Wayne State and Henry Ford hired Navigant in October 2016 to facilitate formal negotiations. Navigant had previously worked for both Wayne State and Henry Ford. Hefner said he recused himself from the Navigant selection because he had worked for them as a consultant. By December 2016, Hefner, Popovich and Navigant had brought in others to the talks that included Wayne State’s Wilson and Sobel, and Henry Ford’s Lassiter and William Conway, M.D., CEO of the medical group. The outline of the Henry Ford-Wayne State affiliation began to take shape. Early talks envisioned the partnership would be styled as an “integrated academic health science center,” a public-private partnership. While it would be modeled on several other health centers, including such examples the University of Pittsburgh and the University of Chicago, the Wayne-Henry Ford affiliation would be unique because of the histories. If successful, Hefner said the negotiating team believes the partnership could catapult Henry Ford into a top 10 health system and Wayne State as a top 40 health center over the next decade. Besides the medical school, Wayne State’s nursing, pharmacy and allied health schools would be integrated into the entire operation. But during this time, problems were brewing between Wayne State and one of its quasi-independent clinical groups, University Pediatricians, which includes many of Wayne State’s pediatric department members and is the primary group affiliated with DMC Children’s Hospital. University Pediatricians was objecting in 2016 to a variety of university rules and bylaws and argued needed to be more independent and work closer with DMC and parent Tenet. In an August 2017 pediatric department meeting, Wilson, Hefner and Sobel made a presentation that was intended to lay out the seriousness of a confrontation brewing between Wayne State and University Pediatricians. Wilson flatly told the pediatricians they had a choice to make: to remain part of a university or to be in a private medical group practice. “Roy spoke to his history of working with organizations and for him, as a university president, (a teaching contract signed last fall by University Pediatricians was) subverted by the practice plan and Tenet,” said Hefner at the time. UP officials apparently took the words by Wilson as an ultimatum to drop their quest for independence, although Sobel told Crain’s multiple times the university wanted to support the pediatric group within the same rules that govern the medical school’s other 16 clinical practice groups. But shortly after the meeting, UP notified Wayne that it would leave the university on March 21 as a clinical practice group. UP still has a contractual relationship with Wayne. However, in a FOIA of their own to the University of Michigan, Wayne State found out in February that DMC, Tenet and University Pediatricians had reached out to UM about replacing Wayne State as early as October 2016, documents obtained by Crain’s show. Wayne officials were stunned because the talks between DMC, UP and UM were happening at the same time Wayne State and UP were talking about a contract renewal and it also predated the announcement UP made in late 2017 to break away from Wayne State. But Wayne State also at the same time in 2016 was both talking about contracts with UP on pediatrics, DMC

HENRY FORD HOSPITAL

A deal would give Henry Ford a prominent and nearby medical school partner and could generate more than $200 million in billings, documents said.

Documents: Potential benefits from Wayne/Henry Ford affiliation In August 2016, confidential Wayne State University documents first began to mention the “Project Leapfrog” affiliation discussions with Henry Ford Health System. JJAffiliation documents obtained by Crain’s outline the potential benefits, so-called “value propositions,” to both institutions: JJA Wayne State University School of Medicine-Henry Ford combination could rival

University of Michigan in research, clinical services and medical education and leapfrog Beaumont Health and other health systems in Michigan. JJCombined research could total more than $344 million, increasing Wayne State and Henry Ford’s ranking to at least 74th, up from 100th as measured by the National Science Foundation. JJA larger faculty physician network of 400 to 700 physicians at the medical school, driven by enhanced recruiting from the partnership, could add $100 million in new physician medical billings. WSU now has 330 medical school faculty members. JJHenry Ford inpatient and outpatient volume could increase with the partnership, adding $100 million in revenue. JJHenry Ford doctors would gain Wayne State faculty appointments and the six-hospital health system would benefit from the direct medical student and resident pipeline and more effective physician recruiting. JJWayne State would benefit by partnering with a health system that shares the same academic values, a national quality reputation and greater access to investment capital to expand its clinical enterprise. JJWayne State would gain statewide managed care and insurance contracting access through Henry Ford’s Health Alliance Plan, one of the state’s largest health insurers. JJHenry Ford’s reputation would grow nationally and could rival the Mayo Clinic and the Cleveland Clinic. JJBoth partners would gain efficiencies, economies of scale in overhead and administration from consolidated operations. This also includes higher utilization of research space; better clinical trials facilities; greater medical school and hospital grant funding.

Source: Value Propositions, Project Leapfrog, August 2016, Henry Ford Health System and Wayne State University

on adult services and Henry Ford about a larger and primary affiliation. In emails Crain’s reviewed from April 2016 through September 2017, executives at Wayne State and Henry Ford exchanged ideas and opinions about the progress made on the affiliation talks. For example, Popovich told Scott Ransom, managing director of health care at Navigant in a Jan. 18, 2017, email that there was enthusiasm for the affiliation but that the executive committee at Henry Ford had questions about the focus and costs. Talks slowed in the middle of 2017, because Lassiter, who became CEO of Henry Ford in early January of that year, needed to overhaul his management team. In June 2017, he added an executive vice president and chief strategy officer, Seth Frazier, and later in the fall, the system’s CFO, Edward Chadwick, left and was replaced by Robin Damshroder. Chadwick had expressed the largest amount of concerns over costs of the affiliation and potential disruption, at least in the short term, two sources told Crain’s. But a Henry Ford official said Chadwick had left the system for other reasons than disagreements about the brewing affiliation. By December 2017, however, the

affiliation talks had progressed to a point that Wayne and Henry Ford formed a small group to draft the first joint letter of intent for the affiliation, Wayne sources said. Documents show that Navigant has a contract to bill Wayne State and Henry Ford $112,000 for every three months. Crain’s was unable to get a clear accounting from Wayne or Henry Ford on the consulting costs. However, a Wayne official estimated each partner has spent about $500,000 so far since October 2016. Wayne and Henry Ford also asked Pricewaterhouse, a national consultant with an office in Detroit, to facilitate separate retreats for Henry Ford and Wayne State doctors to explain the potential affiliation and get feedback. In late February, lawyers for Henry Ford and Wayne, supported by a small team of executives, developed a 16page letter of intent that had terminology on joint governance and operations that enjoyed general support. Hefner said the LOI draft under discussion is more comprehensive than a typical bare-bones agreement in principle. “There is a fallacy that you do the hard stuff later” in a merger or affiliation talks, he said. “If you are going to do it, you need to make hard decisions

up front. We are doing that now.” Heartened by the progress, Henry Ford and Wayne State also have plans to develop a 10-part definitive agreement. Each part, which is expected to be at least 60 pages, will cover all aspects of the affiliation, including governance, operations, research, trademarks and licenses, health professions, clinical practice, philanthropy and facilities. Under the affiliation concept, the partnership would be overseen by the HFHS board of trustees and WSU’s Board of Governors, but the new “Joint Leapfrog Board” would be co-chaired by each organization’s top executive. The board would have delegated responsibilities, including strategic planning, budgeting, recruiting, marketing and communications. In addition, four to six leaders from each organization would become embedded within the other organization’s leadership structure. If a letter of intent is signed this spring, Hefner said it could take three to four months to work out the definitive agreement and get board approval from both organizations. It could be implemented in the fall.

Multiple efforts From 1999 to 2004, efforts were made between Henry Ford and Wayne State to forge an expanded medical education, research and clinical services relationship, said John Crissman, former dean of Wayne State medical school. “It was a goal when I was dean, and it is long overdue,” said Crissman. “Henry Ford has a long tradition of excellence in undergraduate medical education and has been a major contributor to WSU medical student education.” In 2008, Wayne State broached an affiliation with Henry Ford during a contract dispute with DMC that was prompted by former CEO Mike Duggan withholding about $1 million per month in payments from Wayne State. Duggan said he was concerned DMC might be paying Wayne too much, but Wayne officials believed it was a hard-ball negotiating play. The two partners later signed a five-year contract that resulted in Wayne transferring over several residency programs to DMC and accepting at least 16 percent lower annual payments from 2012-2017. A well-known national medical education consultant to Wayne State who requested anonymity, told Crain’s that multiple previous talks with Henry Ford never contemplated a complete disaffiliation with DMC. The affiliation with Henry Ford would give Wayne State many more options for clinical services, medical education and research, he said. However, there was a discussion in 2012 in which the Wayne State University School of Medicine would be merged into Henry Ford and be called the Henry Ford School of Medicine at Wayne State University, according to affiliation documents. Henry Ford Hospital would be renamed Henry Ford University Hospital, the 2012 plans suggested. The medical consultant said Henry Ford viewed a primary medical school affiliation with Wayne State as a “feather in its cap.” He said DMC would take a financial hit, but would remain a major teaching hospital because of its residency programs and affiliation with Michigan State through its osteopathic school. The consultant said the one problem with Wayne State going over to Henry Ford is proximity because

“DMC and Wayne State are cheek to jowl.” Wayne State medical school is located on DMC’s campus and Henry Ford Hospital is located about three miles away. As affiliation talks in 2008 ebbed and executives came and left Henry Ford and Wayne State, the two entities signed a medical affiliation agreement in 2010. But they never dropped the idea their affiliation might become more. In 2015, Wayne State opened its biomedical research center closer to Henry Ford at 6135 Woodward Ave. in Midtown. During the affiliation talks in 2010, Henry Ford considered investing in Wayne State’s iBio building, but backed off because of the economic recession. The state of Michigan contributed $30 million to the cost of iBio.

Possible problems One of the big unknowns that will need to be worked out in the definitive partnership agreement is compensation for the Wayne State faculty in Henry Ford’s medical group. Sources also said it could be difficult for Henry Ford to absorb more of Wayne’s 600 junior and senior medical students than it already accepts. Right now Wayne State sends more than 200 third- and fourth-year medical students to Henry Ford, up from 90 a decade ago. They rotate through Henry Ford’s hospitals and medical centers. On the other hand, affiliation documents include optimistic language that Wayne State can send more health sciences students, which include medical, nursing and pharmacy, to Henry Ford “rather than other less strategic partner locations.” Besides DMC, Wayne students serve clinical clerkship rotations at St. John Crittenton Hospital, St. Joseph Mercy Oakland in Pontiac and Beaumont Health Dearborn and Taylor hospitals. It is unclear whether more students would go to those hospitals. Wayne State with 1,200 students has the largest single-campus medical school in the country. One affiliation suggestion is the medical school could slowly reduce its enrollment to 150 per year from 300. The idea has been broached by Wayne officials several times over the years to reduce costs, especially since four new medical schools have opened in Michigan the past decade and international medical students also compete for spaces at local hospitals. Other risks to the deal include inability to forge a new shared culture and identity, governance issues related to having public versus private boards, integration of an academic physician group with HFMG, loss of key leaders and staff and health insurance payer response, according to affiliation documents. Reaction from DMC and other competitors also could play a big role in potential success. “Increased presence of other medical schools (MSU allopathic and osteopathic, Central Michigan University) in Detroit as WSU refocuses medical education enterprise at HFHS,” the affiliation document said. One of the major wild cards is that Henry Ford has talked with Kaiser Permanente of Oakland, Calif., about various business arrangements that could be a part of the enhanced Wayne-Henry Ford relationship. Sources at Henry Ford and Wayne State confirm talks continue with Kaiser, which could provide deep financial pockets to a statewide expansion of medical and health insurance products. Jay Greene: (313) 446-0325 Twitter: @jaybgreene

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 2 8 , 2 0 1 8

THE WEEK ON THE WEB

RUMBLINGS

State greenlights $618 million for Gilbert projects

Penske, Roush named to NASCAR Hall of Fame

MAY 18-24 | For more, visit crainsdetroit.com

he Michigan Strategic Fund last Tuesday approved about $618 million in brownfield incentives for $2.14 billion in Dan Gilbert projects in downtown Detroit. It’s the first time the state has approved such incentives, which were put into place following passage of a law enacted last year that allows the capture of certain taxes to help bolster development in Michigan communities. The Gilbert projects in the socalled “transformational brownfield” package are: J The $909 million construction of a new residential skyscraper on the site of the former J.L. Hudson’s department store, along with a nine-story podium with a mix of uses. According to a copy of the transformational brownfield plan released last year, the project is expected to include 103,000 square feet of retail and restaurant space; 168,000 square feet of event and conference space; 263,000 square feet of office space; 93,000 square feet of exhibit space; and 330 residential units in the 800-foot tower. It’s also slated to have a 700-space underground parking deck. J The $830 million Monroe Blocks project, which is planned to include a 35-story office tower and 482 residential units, plus retail and other uses. The office tower is slated to be 814,000 square feet, and the project is also anticipated to include 169,000 square feet of retail space spread across the two phases. A 1,200-space below-ground parking deck is also planned. J The $313 million redevelopment of the Book Tower and Book Building on Washington Avenue into a mix of uses. Among them: 95 residential units; an approximately 200room hotel; 106,000 square feet of office space; 50,000 square feet of conference and event space; and 29,000 square feet of first-floor retail. A 400-space parking deck is also planned. J A $95 million, 310,000-squarefoot office addition to Gilbert’s One Campus Martius building that he co-owns along with Meridian Health. “These landmark developments are a milestone representing Detroit’s credible new era of hope, optimism and growth,” Gilbert, Bedrock founder and chairman, said in a statement. “This process has been an outstanding example of collaboration between multiple levels of government and private industry that will unleash billions of dollars of investment, resulting in transformational impact to Detroit, the region, and the entire state of Michigan.” When asked by a Detroit News reporter during a conference call whether Bedrock would seek the transformational brownfield financing again for other projects, Jared Fleisher, vice president of government affairs and economic development for Quicken Loans Inc., said Bedrock’s “hands are more than full.” “We are very focused on this $2.1 billion in transformational projects

SCIENCE GALLERY DUBLIN

Michigan State University plans to launch a Detroit art and science exhibition program in mid-June aimed at engaging 15- to 25-year-olds. Science Gallery Labs Detroit is the experimental art program’s first official outpost in the Americas. Labs is an arm of the the nonprofit Science Gallery International’s Global Science Gallery Network, started in Dublin in 2008.

Detroit digits A numbers-focused look at last week’s headlines:

$213M

The cost of a 530-unit mixed-use development planned for downtown Ann Arbor.

$1.9B

The amount Michigan State University has in unrestricted liquidity that could be used to pay for the school’s proposed $500 million settlement with Nassar abuse survivors, according to Moody’s.

373,507

The number of signatures the Michigan One Fair Wage group submitted to the state so it can put its proposed $12-an-hour minimum wage before the Legislature to pass or reject.

in front of us,” he said. The projects are expected to create about 7,261 full-time equivalent jobs with an average hourly wage of $34. In all, the projects total about 3.1 million square feet of new space, with 907 residential units across the Hudson’s, Monroe and Book projects.

BUSINESS NEWS J Ann Arbor-based Strata Oncology Inc. has wrapped up its Series B funding round with $26 million in investments. New backers include round-leader Pfizer Venture Investments in New York, Merck Global Health Innovation Fund LLC in Whitehouse Station, N.J., Deerfield Management Co. LP in New York and Renaissance Venture Capital Fund in Ann Arbor. Arboretum Ventures LLC in Ann Arbor and Baird Capital in Chicago are returning investors, a news release said. J The state approved $2.13 million in brownfield incentives for a $40 million meat processing and cold storage plant Wolverine Packing Co. is building in Detroit’s Eastern Market district.

J Caesars Windsor casino and hotel postponed concerts and canceled hotel reservations through June 16, after striking union workers rejected a second labor agreement. J Food & Wine named Chef Kate Williams of Lady of the House in Detroit’s Corktown neighborhood one of its best new chefs of 2018. J Gov. Rick Snyder approved an emergency ban on most vessels dropping anchor in the Straits of Mackinac, where oil, electric and other infrastructure cables rest, following an anchor strike that caused a potentially toxic leak. J Longtime furniture seller House of Bedrooms in Bloomfield Hills plans to close its doors and started the liquidation process last week. J Amazon.com Inc. plans to spend $150 million opening another fulfillment center in Michigan with up to 1,000 jobs — this time in Gaines Township, near Grand Rapids. J Christian Financial Credit Union is building a $12 million headquarters in Sterling Heights that will nearly triple the size of its current home base in Roseville.

OTHER NEWS Oakland County Executive L. Brooks Patterson last week called for the dismantling of the Regional Transit Authority he spent years advocating for and said metro Detroit’s transportation needs should shift to the existing suburban system. J Detroit has made no headway in passing new policies that could improve health and quality of life for people in the city, according to the latest CityHealth report, which grades cities on health-related public policy categories. J Beacon Park, a public space funded by DTE Energy Beacon Park Foundation and run by the Downtown Detroit Partnership, will mark its second summer with a free threepart concert series featuring pop group Saint Motel, local indie duo JR JR and a to-be-announced national act. J With $30 million in donations, the University of Michigan established the Chad Carr Pediatric Brain Tumor Center to advance research and treatment for children with brain cancer. J

ocal business titans and racing legends Roger Penske and Jack Roush have been elected to the NASCAR Hall of Fame’s Class of 2019. Penske is the founder and chairman of Bloomfield Hills-based Penske Corp. and Team Penske, which has captured 489 victories, 556 pole positions and 32 championships across open-wheel, stock car and sports car racing. Penske is also chairman of Penske Automotive Group, one of the nation’s largest new-vehicle dealership groups. In NASCAR, Team Penske captured the NASCAR Cup Series Championship in 2012, the NASCAR Xfinity Series Championship in 2010 and four of the last five NASCAR Xfinity Series Owners’ Championships, in 2013, 2014, 2015 and 2017. The team has captured 108 NASCAR Cup Series victories, including two Daytona 500 wins — in 2008 and 2015. Penske also helped build and/or operate several of NASCAR’s major race tracks, including Michigan In-

ternational Speedway, Auto Club (then California) Speedway, Nazareth Speedway, Homestead-Miami Speedway and North Carolina Motor Speedway. Over the course of its 52-year history, Team Penske won 16 Indianapolis 500 victories, a Formula 1 win and overall victories in the 24 Hours of Daytona and the 12 Hours of Sebring. Roush, founder of Roush Enterprises, a major supplier to the auto industry, is a former Michigan-based drag-racing owner and enthusiast. He started a NASCAR team in 1988. Since he founded Roush Racing, now Roush Fenway Racing, the mathematician-turned-engineer and entrepreneur captured a record 325 races across NASCAR’s three national series. Roush won five NASCAR national series owner championships and his drivers have won an additional three driver championships. The induction ceremony is Feb. 1 in Charlotte, N.C. The $909 million construction is underway for a new residential skyscraper on the site of the former J.L. Hudson’s department store in downtown Detroit, along with a nine-story podium with a mix of uses.

Hudson’s, Monroe sites to have among highest rents A

top Dan Gilbert lieutenant said office rents in billionaire’s new planned skyscrapers downtown would be among the most expensive in the market. RJ Wolney, vice president of finance for Gilbert’s Bedrock LLC real estate development, management and leasing company, told reporters on Tuesday that the company would likely be charging in the “high $30s, low $40s” per square foot to tenants in both the J.L. Hudson’s department store site office space as well as new office space in the development known as the Monroe Blocks east of Gilbert’s One Campus Martius headquarters. “That’s the type of premium that will make these projects possible and viable,” Wolney said in a conference call with reporters. Those two projects are part of $2.14 billion the founder and chairman of Quicken Loans Inc. and Rock

Ventures LLC plans. The development cluster received $618 million in state tax incentives last week from the Michigan Strategic Fund. The “high $30s, low $40s” number is along the lines of what the average office user could expect to pay in cities like Los Angeles ($38.88 per square foot in Q1); Washington, D.C. ($37.88 per square foot) and Oakland/East Bay ($36.77 per square foot), according to research from Newmark Knight Frank, which has offices in Southfield and Farmington Hills. Here’s why that may come with some sticker shock locally though: The current average asking rent in the 13.32 million-square-foot central business district office market is $21.92 per square foot, according to a Q1 report from the Royal Oak office of JLL (formerly Jones Lang Lasalle). And for Class A space, the average is $23.69 per square foot.

Environmental Services Energy Construction Manufacturing Food Processing Automotive Wholesaling Apparel

The Leading Bank for Your Business Metals Textiles Motion Picture Healthcare Life Sciences Wine Dealership No two industries face the same business challenges or have the same banking needs.

That is why Comerica specializes in understanding unique industry environments. The depth of our business portfolio reﬂects our extensive experience with industries like yours. From tailored lending programs1 to the right cash management and global solutions, our experience and knowledge of your unique industry needs can help you grow to the next level. This is how we became the leading bank for business.* To ﬁnd out how Comerica can help your business thrive, visit Comerica.com/leadingbank or contact Comerica Bank at 888.791.9396.

RAISE YOUR EXPECTATIONS. MEMBER FDIC. EQUAL OPPORTUNITY LENDER.

* Comerica ranks ﬁrst nationally among the top 25 U.S. ﬁnancial holding companies, based on commercial and industrial loans outstanding as a percentage of assets, as of December 31, 2016. Data provided by SNL Financial. 1 Loans subject to credit approval.

CBHQ-15807 06/17